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Income Tax (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Provision for income tax from continuing operations
The provision for income tax was as follows:
Years Ended December 31,
202120202019
(In millions)
Current:
U.S. federal
$62 $271 $(189)
U.S. state and local
38 27 4 
Non-U.S.
795 882 850 
Subtotal
895 1,180 665 
Deferred:
U.S. federal
837 (115)(235)
U.S. state and local
(2)1 — 
Non-U.S.
(179)443 456 
Subtotal
656 329 221 
Provision for income tax expense (benefit)
$1,551 $1,509 $886 
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,
202120202019
(In millions)
Income (loss):
U.S.
$4,841 $2,970 $2,094 
Non-U.S.
3,285 3,957 4,701 
Total
$8,126 $6,927 $6,795 
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,
202120202019
(In millions)
Tax provision at U.S. statutory rate$1,706 $1,455 $1,427 
Tax effect of:
Dividend received deduction(40)(34)(37)
Tax-exempt income(36)(45)(64)
Prior year tax (1), (2)(127)(27)(179)
Low income housing tax credits(178)(202)(254)
Other tax credits(46)(45)(52)
Foreign tax rate differential (3), (4), (5)267 414 395 
Change in valuation allowance1 (5)(22)
U.S. Tax Reform impact (6)— — (326)
Other, net (7)4 (2)(2)
Provision for income tax expense (benefit)$1,551 $1,509 $886 
__________________
(1)As discussed further below, prior year tax primarily includes a non-cash benefit related to uncertain tax positions of $117 million and $158 million for the years ended December 31, 2021 and 2019, respectively.
(2)For the year ended December 31, 2020, prior year tax primarily includes a $40 million tax benefit related to an Internal Revenue Service (“IRS”) audit matter.
(3)For the year ended December 31, 2021, foreign tax rate differential includes tax charges of $50 million related to the pending disposition of MetLife Poland and disposition of MetLife Greece, $41 million related to the sale of MetLife Seguros and $30 million related to the U.S. tax on Global Intangible Low-Taxed Income (“GILTI”) of which $42 million is a current year charge offset by a $12 million tax benefit revising the 2020 estimate. See Note 3 for information on the Company’s business dispositions.
(4)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 GILTI. See Note 3 for information on the Company’s business dispositions.
(5)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.
(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, 2021, other primarily includes tax charges of $54 million related to the sale of MetLife P&C offset by a tax benefit of $53 million related to a non-cash transfer of assets from a wholly-owned U.K. subsidiary to its U.S. parent.
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,
20212020
(In millions)
Deferred income tax assets:
Policyholder liabilities and receivables
$3,787 $3,890 
Net operating loss carryforwards (1)
235 301 
Employee benefits
583 673 
Capital loss carryforwards
9 9 
Tax credit carryforwards (2)
825 922 
Litigation-related and government mandated
95 126 
Total gross deferred income tax assets
5,534 5,921 
Less: Valuation allowance (1)
299 309 
Total net deferred income tax assets
5,235 5,612 
Deferred income tax liabilities:
Investments, including derivatives
4,167 4,421 
Intangibles
1,188 1,387 
Net unrealized investment gains
5,551 7,422 
DAC
3,471 3,162 
Other362 134 
Total deferred income tax liabilities
14,739 16,526 
Net deferred income tax asset (liability) (3)
$(9,504)$(10,914)
__________________
(1)The Company has recorded a deferred tax asset of $235 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, 2021. Certain net operating loss carryforwards will expire between 2022 and 2041, whereas others have an unlimited carryforward period.
(2)Tax credit carryforwards for the year ended December 31, 2021 primarily reflect general business credits expiring between 2038 and 2041 and are reduced by $44 million related to unrecognized tax benefits.
(3)On the consolidated balance sheet for the years ended December 31, 2021 and 2020, $9,693 million and $11,008 million, respectively, is reported in Deferred income tax liability for jurisdictions in a net deferred income tax liability position and $189 million and $94 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,
202120202019
(In millions)
Balance at January 1,$272 $256 $1,111 
Additions for tax positions of prior years19 16 6 
Reductions for tax positions of prior years (1)(112)(1)(493)
Additions for tax positions of current year5 12 13 
Reductions for tax positions of current year(18)— — 
Settlements with tax authorities (2)(3)(1)(381)
Lapses of statute of limitations— (10)— 
Balance at December 31,$163 $272 $256 
Unrecognized tax benefits that, if recognized, would impact the effective rate
$103 $203 $194 
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(1)    The decreases in 2021 and 2019 are primarily related to non-cash benefits from tax audit settlements.
(2)    The decrease in 2019 is primarily related to tax audit settlements, of which $377 million was reclassified to the current income tax payable account.
Interest was as follows:
Years Ended December 31,
202120202019
(In millions)
Interest expense (benefit) recognized on the consolidated statements of operations (1)
$(36)$12 $(179)
December 31,
20212020
(In millions)
Interest included in other liabilities on the consolidated balance sheets$15 $51 
__________________
(1)    The decreases in 2021 and 2019 are primarily related to the tax audit settlements, of which $10 million and $60 million, respectively, were recorded in other expenses, and $26 million and $119 million, respectively, were reclassified to the current income tax payable account.