Income tax expense (benefit) consisted of the following for the periods indicated.



	Year Ended December 31,
	2013		2012			2011
Current tax expense (benefit):
Federal	$	144.6	$	200.9		$	60.3
Total current tax expense (benefit)	144.6		200.9			60.3
Deferred tax expense (benefit):
Federal	62.4		(9.7		)	(65.3		)
Total deferred tax expense (benefit)	62.4		(9.7		)	(65.3		)
Total income tax expense (benefit)	$	207.0	$	191.2		$	(5.0	)

Income taxes were different from the amount computed by applying the federal income tax rate to income (loss) before income taxes for the following reasons for the periods indicated:



	Year Ended December 31,
	2013			2012			2011
Income (loss) before income taxes	$	490.5		$	516.6		$	315.3
Tax rate	35.0		%	35.0		%	35.0		%
Income tax expense (benefit) at federal statutory rate	171.7			180.8			110.4
Tax effect of:
Dividends received deduction	(26.6		)	(18.6		)	(37.0		)
Valuation allowance	67.6			—			(87.0		)
Audit settlements	(0.3		)	(0.3		)	3.7
Prior year tax	—			28.1			—
Other	(5.4		)	1.2			4.9
Income tax expense (benefit)	$	207.0		$	191.2		$	(5.0	)

For 2012, the difference between the income tax provision as computed and the federal statutory rate was primarily due to a decrease in our estimate of certain deferred tax assets. Based on its 2011 tax return as filed, the Company decreased its estimated deferred tax assets by $28.1.

Temporary Differences

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of the dates indicated, are presented below.



	December 31,
	2013			2012
Deferred tax assets
Insurance reserves	$	166.7		$	255.4
Investments	231.8			87.5
Postemployment benefits	67.3			50.6
Compensation and benefits	35.8			44.4
Other assets	—			24.5
Total gross assets before valuation allowance	501.6			462.4
Less: Valuation allowance	11.1			11.1
Assets, net of valuation allowance	490.5			451.3

Deferred tax liabilities
Net unrealized investment (gains) losses	(310.5		)	(482.4		)
Deferred policy acquisition costs	(124.1		)	(143.8		)
Value of business acquired	(243.8		)	(332.2		)
Other liabilities	(2.2		)	—
Total gross liabilities	(680.6		)	(958.4		)
Net deferred income tax asset (liability)	$	(190.1	)	$	(507.1	)

Valuation allowances are provided when it is considered unlikely that deferred tax assets will be realized. As of December 31, 2013 and 2012, the Company had valuation allowances of $130.4 and $62.8 respectively, that were allocated to continuing operations, and $(119.3) and $(51.7) as of the end of each period that were allocated to Other comprehensive income. As of December 31, 2013 and 2012, the Company had a full valuation allowance of $11.1 related to foreign tax credits, the benefit of which is uncertain.

For the years ended December 31, 2013 and 2012, there were no total increases (decreases) in the valuation allowance. For the year ended December 31, 2011 there was a (decrease) of $(109.0). In the years ended December 31, 2013, 2012 and 2011, there were increases (decreases) of $67.6, $0.0 and $(87.0), respectively, in the valuation allowance that were allocated to operations. In the years ended December 31, 2013, 2012 and 2011, there were increases (decreases) of $(67.6), $0.0 and $(22.0), respectively, that were allocated to Other comprehensive income.

Tax Sharing Agreement

The Company had a payable to ING U.S., Inc. of $74.1 and $32.1 for federal income taxes as of December 31, 2013 and 2012, respectively, for federal income taxes under the intercompany tax sharing agreement.

The results of the Company's operations are included in the consolidated tax return of ING U.S., Inc. Generally, the Company's consolidated financial statements recognize the current and deferred income tax consequences that result from the Company's activities during the current and preceding periods pursuant to the provisions of Income Taxes (ASC Topic 740) as if the Company were a separate taxpayer rather than a member of ING U.S., Inc.'s consolidated income tax return group with the exception of any net operating loss carryforwards and capital loss carryforwards, which are recorded pursuant to the tax sharing agreement. The Company's tax sharing agreement with ING U.S., Inc. states that for each taxable year prior to January 1, 2013 during which the Company is included in a consolidated federal income tax return with ING U.S., Inc., ING U.S., Inc. will pay to the Company an amount equal to the tax benefit of the Company's net operating loss carryforwards and capital loss carryforwards generated in such year, without regard to whether such net operating loss carryforwards and capital loss carryforwards are actually utilized in the reduction of the consolidated federal income tax liability for any consolidated taxable year.

Effective January 1, 2013, the Company entered into a new tax sharing agreement with ING U.S., Inc. which provides that, for 2013 and subsequent years, ING U.S., Inc. will pay the Company for the tax benefits of ordinary and capital losses only in the event that the consolidated tax group actually uses the tax benefit of losses generated.

Unrecognized Tax Benefits

Reconciliations of the change in the unrecognized income tax benefits for the periods indicated are as follows:



	Year Ended December 31,
	2013		2012		2011
Balance at beginning of period	$	—	$	—	$	23.0
Additions for tax positions related to prior years	—		—		4.5
Reductions for tax positions related to prior years	—		—		(4.5		)
Reductions for settlements with taxing authorities	—		—		(23.0		)
Balance at end of period	$	—	$	—	$	—

The Company had no unrecognized tax benefits for the years ended December 31, 2013 and 2012.

Interest and Penalties

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in Current income taxes and Income tax expense on the Consolidated Balance Sheets and the Consolidated Statements of Operations, respectively. The Company had no accrued interest as of December 31, 2013 and 2012.

Tax Regulatory Matters

During the first quarter 2013, the Internal Revenue Service ("IRS") completed its examination of ING U.S., Inc.'s return for tax year 2011. The 2011 audit settlement did not have a material impact on the Company's financial statements. ING U.S., Inc. is currently under audit by the IRS, and it is expected that the examination of tax year 2012 will be finalized within the next twelve months. ING U.S., Inc. and the IRS have agreed to participate in the Compliance Assurance Program for the tax years 2012 through 2014.