Company: HUM
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000049071-25-000007
Chunk: 44

Company: HUMANA INC
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 44
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 effect when the reported amounts are actually recovered or settled. 

97

Humana Inc.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Principal components of our net deferred tax balances at December 31, 2024 and 2023 were as follows: Assets (Liabilities) 20242023 (in millions)Net operating loss carryforward$93 $84 Compensation and other accrued expense171 218 Benefits payable217 150 Deferred acquisition costs39 43 Other6 16 Unearned revenues6 5 Investment securities510 419 Total deferred income tax assets1,042 935 Valuation allowance(85)(73)Total deferred income tax assets, net of valuation allowance957 862 Depreciable property and intangible assets(502)(642)Prepaid expenses(172)(156)Other(23)(16)Total deferred income tax liabilities(697)(814)Total net deferred income tax assets (liabilities)$260 $48 Amounts recognized in the consolidated balance sheets:Other long-term assets$260 $48 All deferred tax assets and liabilities are classified as noncurrent in our consolidated balance sheets as other long-term assets and liabilities at December 31, 2024  and 2023, respectively. At December 31, 2024, we had approximately $16 million of federal net operating losses and approximately $1.1 billion of pre-apportioned state and Puerto Rico net operating losses to carry forward. A portion of these loss carryforwards, if not used to offset future taxable income, will expire from 2025 through 2042. The balance of the net operating loss carryforwards has no expiration date. Due to limitations and uncertainty regarding our ability to use some of the loss carryforwards and certain other deferred tax assets, a valuation allowance of $85 million was established. For the remainder of the net operating loss carryforwards and other cumulative temporary differences, based on our historical record of producing taxable income and profitability, we have concluded that future operating income will be sufficient to recover these deferred tax assets.  We file income tax returns in the United States and Puerto Rico. The U.S. Internal Revenue Service, or IRS, has completed its examinations of our consolidated income tax returns for 2022 and prior years. Our 2023 tax return is in the post-filing review period under the Compliance Assurance Process, or CAP. Our 2024 tax return is under advance review