Humana 2011 Annual Report Download - page 116

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The provision for income taxes was different from the amount computed using the federal statutory rate for
the years ended December 31, 2011, 2010 and 2009 due to the following:
2011 2010 2009
(in millions)
Income tax provision at federal statutory rate .................. $782 $612 $561
States, net of federal benefit and Puerto Rico .................. 35 31 29
Tax exempt investment income ............................ (25) (24) (21)
Nondeductible executive compensation ...................... 11 13 0
Contingent tax benefits ................................... 0 0 (17)
Other, net .............................................. 13 18 10
Provision for income taxes ............................ $816 $650 $562
The provision for income taxes for 2011 and 2010 reflects an $11 million and $13 million, respectively,
estimated impact from limitations on the deductibility of annual compensation in excess of $500,000 per
employee as mandated by the Health Insurance Reform Legislation.
The liability for unrecognized tax benefits was $17 million at December 31, 2008. This liability, which was
released in 2009 as a result of settlements associated with the completion of the audit of our U.S. income tax
returns for 2005 and 2006, reduced tax expense $17 million in 2009. As of December 31, 2011, we do not have
material uncertain tax positions reflected in our consolidated balance sheet.
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