Note 8 - Income Taxes

Current and Deferred Income Tax Assets at September 30, 2016 and December 31, 2015 were:



(Dollars in Millions)	Sep 30, 2016		Dec 31, 2015
Current Income Tax Assets	$	28.5	$	9.5
Deferred Income Tax Assets	—		31.9
Current and Deferred Income Tax Assets	$	28.5	$	41.4

The components of Liabilities for Income Taxes at September 30, 2016 and December 31, 2015 were:



(Dollars in Millions)	Sep 30, 2016		Dec 31, 2015
Deferred Income Tax Liabilities	$	29.5	$	—
Unrecognized Tax Benefits	3.7		3.8
Liabilities for Income Taxes	$	33.2	$	3.8

The statute of limitations related to Kemper and its eligible subsidiaries’ consolidated Federal income tax returns is closed for all tax years up to and including 2012. The expiration of the statute of limitations related to the various state income tax returns that Kemper and its subsidiaries file varies by state.

Included in the balance of Unrecognized Tax Benefits at September 30, 2016 and December 31, 2015 are tax positions of $3.2 million and $3.3 million, respectively, for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred income tax accounting, other than for interest and penalties, the disallowance of the shorter deductibility period would not affect the effective income tax rate but would accelerate the payment of cash to the taxing authority to an earlier period.

The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. The liability for Unrecognized Tax Benefits included accrued interest of $0.5 million and $0.5 million at September 30, 2016 and December 31, 2015, respectively.

Income taxes paid were $10.4 million and $40.1 million for the nine months ended September 30, 2016 and 2015, respectively.