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Income Tax (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Provision for income tax from continuing operations
The provision for income tax was as follows:
Years Ended December 31,
202020192018
(In millions)
Current:
U.S. federal
$271 $(189)$(207)
U.S. state and local
27 4 11 
Non-U.S.
882 850 932 
Subtotal
1,180 665 736 
Deferred:
U.S. federal
(115)(235)342 
U.S. state and local
1 — — 
Non-U.S.
443 456 101 
Subtotal
329 221 443 
Provision for income tax expense (benefit)
$1,509 $886 $1,179 
Income (loss) from continuing operations before income tax expense (benefit) from domestic and foreign operations
The Company’s income (loss) before income tax expense (benefit) was as follows:
Years Ended December 31,
202020192018
(In millions)
Income (loss):
U.S.
$2,970 $2,094 $(803)
Non-U.S.
3,957 4,701 7,110 
Total
$6,927 $6,795 $6,307 
Income tax for continuing operations effective rate reconciliation
The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported was as follows:
Years Ended December 31,
202020192018
(In millions)
Tax provision at U.S. statutory rate$1,455 $1,427 $1,325 
Tax effect of:
Dividend received deduction(34)(37)(35)
Tax-exempt income(45)(64)(29)
Prior year tax (1), (2)(27)(179)(197)
Low income housing tax credits(202)(254)(284)
Other tax credits(45)(52)(79)
Foreign tax rate differential (3), (4), (5)414 395 335 
Change in valuation allowance(5)(22)(2)
U.S. Tax Reform impact (6), (7)— (326)78 
Other, net (8)(2)(2)67 
Provision for income tax expense (benefit)$1,509 $886 $1,179 
__________________
(1)For the year ended December 31, 2020, prior year tax includes a $40 million tax benefit related to an Internal Revenue Service (“IRS”) audit matter.
(2)As discussed further below, prior year tax includes a non-cash benefit related to an uncertain tax position of $158 million and $168 million for the years ended December 31, 2019 and 2018, respectively.
(3)For the year ended December 31, 2020, foreign tax rate differential includes tax charges of $60 million and $24 million related to the sales of MetLife Seguros de Retiro and MetLife Russia, respectively, and $43 million related to the U.S. tax on Global Intangible Low-Taxed Income (“GILTI”). See Note 3 for information on the Company’s business dispositions.
(4)For the year ended December 31, 2019, foreign tax rate differential includes tax charges of $61 million from the definitive agreement to sell MetLife Hong Kong and $12 million related to GILTI, of which $35 million is a current year charge offset by a $23 million tax benefit revising the 2018 estimate. See Note 3 for information on the disposition of MetLife Hong Kong.
(5)For the year ended December 31, 2018, foreign tax rate differential includes tax charges of $45 million related to GILTI, $17 million related to a tax adjustment in Chile and $13 million from changes in the valuation of the peso in Argentina.
(6)For the year ended December 31, 2019, U.S. Tax Reform impact includes a $317 million tax benefit related to the deemed repatriation transition tax and $9 million related to the effect of sequestration on the alternative minimum tax credit.
(7)For the year ended December 31, 2018, U.S. Tax Reform impact includes a $468 million tax charge related to the deemed repatriation transition tax, offset by a $390 million tax benefit related to the adjustment of deferred taxes due to the U.S. tax rate change. This excludes $12 million of tax provision at the U.S. statutory rate for a total tax reform charge of $66 million.
(8)For the year ended December 31, 2018, other includes tax charges of $69 million related to the non-deductible loss incurred on the mark-to-market and exchange of FVO Brighthouse Common Stock and $18 million related to a non-deductible Patient Protection and Affordable Care Act excise tax, offset by a tax benefit of $36 million related to a non-cash transfer of assets from a wholly-owned U.K. subsidiary to its U.S. parent.
Impact of U.S. Tax Reform [Table Text Block]
The incremental financial statement impact related to U.S. Tax Reform was as follows:
Years Ended December 31,
20192018
(In millions)
Income (loss) before provision for income tax$— $(58)
Provision for income tax expense (benefit):
Deemed repatriation
(317)468 
Deferred tax revaluation
(9)(402)
Total provision for income tax expense (benefit)(326)66 
Income (loss), net of income tax326 (124)
Increase to net equity from U.S. Tax Reform$326 $(124)
Components of deferred tax assets and liabilities
Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at:
December 31,
20202019
(In millions)
Deferred income tax assets:
Policyholder liabilities and receivables
$3,890 $3,635 
Net operating loss carryforwards (1)
301 240 
Employee benefits
673 692 
Capital loss carryforwards
9 10 
Tax credit carryforwards (2)
922 1,296 
Litigation-related and government mandated
126 151 
Other
— 127 
Total gross deferred income tax assets
5,921 6,151 
Less: Valuation allowance (1)
309 294 
Total net deferred income tax assets
5,612 5,857 
Deferred income tax liabilities:
Investments, including derivatives
4,421 4,170 
Intangibles
1,387 1,181 
Net unrealized investment gains
7,422 6,226 
DAC
3,162 3,312 
Other134 — 
Total deferred income tax liabilities
16,526 14,889 
Net deferred income tax asset (liability) (3)
$(10,914)$(9,032)
__________________
(1)The Company has recorded a deferred tax asset of $301 million related to U.S. state and non-U.S. net operating loss carryforwards and an offsetting valuation allowance for the year ended December 31, 2020. Certain net operating loss carryforwards will expire between 2021 and 2040, whereas others have an unlimited carryforward period.
(2)Tax credit carryforwards for the year ended December 31, 2020 primarily reflect general business credits expiring between 2037 and 2040 and are reduced by $94 million related to unrecognized tax benefits.
(3)On the consolidated balance sheet for the years ended December 31, 2020 and 2019, $11,008 million and $9,097 million, respectively, is reported in Deferred income tax liability for jurisdictions in a net deferred income tax liability position and $94 million and $65 million, respectively, of a deferred income tax asset is reported in Other assets for jurisdictions in a net deferred income tax asset position.
Reconciliation of unrecognized tax benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
Years Ended December 31,
202020192018
(In millions)
Balance at January 1,$256 $1,111 $1,102 
Additions for tax positions of prior years (1)16 6 269 
Reductions for tax positions of prior years (2)(1)(493)(195)
Additions for tax positions of current year (1)12 13 226 
Reductions for tax positions of current year— — (3)
Settlements with tax authorities (3)(1)(381)(288)
Lapses of statute of limitations(10)— — 
Balance at December 31,$272 $256 $1,111 
Unrecognized tax benefits that, if recognized, would impact the effective rate
$203 $194 $1,046 
__________________
(1)    The increase in 2018 is primarily related to the deemed repatriation transition tax and related IRS regulations.
(2)    The decreases in 2019 and 2018 are primarily related to non-cash benefits from tax audit settlements.
(3)    The decreases in 2019 and 2018 are primarily related to the tax audit settlement, of which $377 million and $284 million, respectively, was reclassified to the current income tax payable account.
Interest was as follows:
Years Ended December 31,
202020192018
(In millions)
Interest expense (benefit) recognized on the consolidated statements of operations (1)
$12 $(179)$(441)
December 31,
20202019
(In millions)
Interest included in other liabilities on the consolidated balance sheets$51 $39 
__________________
(1)    The decreases in 2019 and 2018 are primarily related to the tax audit settlement, of which $60 million and $168 million, respectively, was recorded in other expenses and $119 million and $273 million, respectively, was reclassified to the current income tax payable account.