Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

The provision for income taxes is comprised of the following:

The following table presents a reconciliation between the statutory federal income tax rate and the Company’s effective federal income tax rate:



	Year Ended December 31,
	2016		2015		2014
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
Income tax effect of:
Investment income not subject to federal tax	(3.0	)%	(3.0	)%	(1.8	)%
Tax credits	(6.9	)%	(0.2	)%	(0.3	)%
State income taxes, net of federal benefit	2.3	%	3.2	%	1.0	%
Income tax contingency provisions	—	%	—	%	(1.2	)%
Other, net	(0.4	)%	(0.9	)%	0.2	%
Effective federal income tax rate	27.0	%	34.1	%	32.9	%

A reconciliation of unrecognized tax benefits is as follows:



	Year Ended December 31,
	2016			2015			2014
Balance, beginning of year	$	23,093		$	26,890		$	21,154
Additions to tax positions in the current year	—			1,383			13,931
Additions to tax positions in the prior year	1,902			50			—
Reductions to tax positions from statutes expiring	(7,727		)	(5,230		)	(8,195		)
Balance, end of year	$	17,268		$	23,093		$	26,890

The tax effect of temporary differences, which give rise to the deferred tax assets and liabilities, is as follows:



	December 31,
	2016				2015
	Deferred		Deferred		Deferred		Deferred
	tax asset		tax liability		tax asset		tax liability
Policyholder reserves	$	—	$	278,632	$	—	$	262,822
Deferred acquisition costs	—		28,071		—		8,533
Investment assets	—		233,583		—		221,303
Policyholder dividends	8,583		—		8,919		—
Net operating loss carryforward	96,693		—		113,637		—
Pension plan accrued benefit liability	83,562		—		79,945		—
Goodwill	—		35,306		—		33,034
Experience rated refunds	6,654		—		12,673		—
Tax credits	168,597		—		154,017		—
Other	19,592		—		19,385		—
Total deferred taxes	$	383,681	$	575,592	$	388,576	$	525,692

As of December 31, 2016, the subsidiary had net operating loss carry forwards expiring as follows: