Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

The provision for income taxes consists of the following for the years ended December 31:



(in millions)	Erie Insurance Group
	2014			2013			2012
Indemnity
Current income tax expense	$	87		$	89		$	84
Deferred income tax benefit	(4		)	(5		)	(3		)
Provision for income taxes – Indemnity	83			84			81
Exchange
Current income tax expense	166			232			78
Deferred income tax expense	8			203			121
Provision for income taxes – Exchange	174			435			199
Provision for income taxes – Erie Insurance Group	$	257		$	519		$	280

Schedule of reconciliation of the provision for income taxes, with amounts determined by applying the statutory federal income tax rates to pre-tax income

A reconciliation of the provision for income taxes, with amounts determined by applying the statutory federal income tax rates to pre-tax income, is as follows for the years ended December 31:



(in millions)	Erie Insurance Group
	2014			2013			2012
Indemnity
Income tax at statutory rates	$	88		$	86		$	84
Other, net	(5		)	(2		)	(3		)
Provision for income taxes – Indemnity	83			84			81
Exchange
Income tax at statutory rates	202			462			230
Tax-exempt interest	(13		)	(13		)	(13		)
Dividends received deduction	(15		)	(14		)	(14		)
Other, net	0			0			(4		)
Provision for income taxes – Exchange	174			435			199
Provision for income taxes – Erie Insurance Group	$	257		$	519		$	280

Schedule of temporary differences and carry-forwards, which give rise to consolidated deferred tax assets and liabilities

Temporary differences and carry-forwards, which give rise to consolidated deferred tax assets and liabilities, are as follows for the years ended December 31:



(in millions)	Erie Insurance Group
	2014		2013
Indemnity
Deferred tax assets:
Other employee benefits	$	18	$	14
Pension and other postretirement benefits	55		24
Other	4		3
Total deferred tax assets	77		41
Deferred tax liabilities:
Unrealized gains on investments	4		3
Limited partnerships	11		11
Depreciation	17		17
Prepaid expenses	8		7
Other	0		1
Total deferred tax liabilities	40		39
Net deferred income tax asset – Indemnity	$	37	$	2



Exchange
Deferred tax assets:
Loss reserve discount	$	55		$	63
Unearned premiums	214			197
Write-downs of impaired securities	8			18
Other	25			19
Total deferred tax assets	302			297
Deferred tax liabilities:
Deferred policy acquisition costs	191			185
Unrealized gains on investments	510			489
Limited partnerships	67			61
Other	24			12
Total deferred tax liabilities	792			747
Net deferred income tax liability – Exchange	$	(490	)	$	(450	)
Net deferred income tax liability – Erie Insurance Group	$	(453	)	$	(448	)