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Income Tax (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Provision for income tax from continuing operations
The provision for income tax was as follows:
Years Ended December 31,
202220212020
(In millions)
Current:
U.S. federal
$159 $62 $271 
U.S. state and local
45 38 27 
Non-U.S.
1,074 795 882 
Subtotal
1,278 895 1,180 
Deferred:
U.S. federal
536 837 (115)
U.S. state and local
— (2)1 
Non-U.S.
(1,513)(179)443 
Subtotal
(977)656 329 
Provision for income tax expense (benefit)
$301 $1,551 $1,509 
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,
202220212020
(In millions)
Income (loss):
U.S.
$2,681 $4,841 $2,970 
Non-U.S.
178 3,285 3,957 
Total
$2,859 $8,126 $6,927 
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,
202220212020
(In millions)
Tax provision at U.S. statutory rate$601 $1,706 $1,455 
Tax effect of:
Dividend received deduction(20)(40)(34)
Tax-exempt income15 (36)(45)
Prior year tax (1), (2)(15)(127)(27)
Low income housing tax credits(143)(178)(202)
Other tax credits(44)(46)(45)
Foreign tax rate differential (3), (4), (5)(110)267 414 
Change in valuation allowance— 1 (5)
Other, net17 4 (2)
Provision for income tax expense (benefit)$301 $1,551 $1,509 
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(1)As discussed further below, prior year tax primarily includes non-cash benefits related to uncertain tax positions of $32 million and $117 million for the years ended December 31, 2022 and 2021, 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, 2022, foreign tax rate differential includes tax charges of $12 million related to the U.S. tax on Global Intangible Low-Taxed Income (“GILTI”) of which $33 million is a current year charge offset by a $21 million tax benefit revising the 2021 estimate.
(4)For the year ended December 31, 2021, foreign tax rate differential includes tax charges of $50 million related to the disposition of MetLife Poland and Greece, $41 million related to the sale of MetLife Seguros and $30 million related to the U.S. tax on GILTI, which included a $42 million 2021 charge offset by a $12 million tax benefit revising the 2020 estimate. See Note 3 for information on the Company’s business dispositions.
(5)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.
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,
20222021
(In millions)
Deferred income tax assets:
Policyholder liabilities and receivables
$1,496 $3,787 
Net operating loss carryforwards (1)
238 235 
Employee benefits
475 583 
Capital loss carryforwards
15 9 
Tax credit carryforwards (2)
590 825 
Net unrealized investment losses5,319 — 
Litigation-related and government mandated
90 95 
Other67 — 
Total gross deferred income tax assets
8,290 5,534 
Less: Valuation allowance (1)
291 299 
Total net deferred income tax assets
7,999 5,235 
Deferred income tax liabilities:
Investments, including derivatives
1,691 4,167 
Intangibles
1,096 1,188 
Net unrealized investment gains
— 5,551 
DAC
2,707 3,471 
Other— 362 
Total deferred income tax liabilities
5,494 14,739 
Net deferred income tax asset (liability)$2,505 $(9,504)
__________________
(1)The Company has recorded a deferred tax asset of $238 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, 2022. Certain net operating loss carryforwards will expire between 2023 and 2042, whereas others have an unlimited carryforward period.
(2)Tax credit carryforwards for the year ended December 31, 2022 primarily reflect general business credits expiring between 2039 and 2042 and are increased by $44 million related to unrecognized tax benefits.
Reconciliation of unrecognized tax benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
Years Ended December 31,
202220212020
(In millions)
Balance at January 1,$163 $272 $256 
Additions for tax positions of prior years42 19 16 
Reductions for tax positions of prior years (1)(93)(112)(1)
Additions for tax positions of current year22 5 12 
Reductions for tax positions of current year(3)(18)— 
Settlements with tax authorities(2)(3)(1)
Lapses of statute of limitations— — (10)
Balance at December 31,$129 $163 $272 
Unrecognized tax benefits that, if recognized, would impact the effective rate
$80 $103 $203 
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(1)    The decreases in 2022 and 2021 are primarily related to non-cash benefits from tax audit settlements.
Interest was as follows:
Years Ended December 31,
202220212020
(In millions)
Interest expense (benefit) recognized on the consolidated statements of operations (1)
$— $(36)$12 
December 31,
20222021
(In millions)
Interest included in other liabilities on the consolidated balance sheets$15 $15 
__________________
(1)    For the year ended December 31, 2021, the interest benefit is primarily related to a tax audit settlement of $10 million which was recorded in other expenses and a reclassification of $26 million to current income tax payable.