Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

The components of deferred income taxes at December 31, 2018 and 2017 are as follows:



	2018		2017
Deferred tax assets relating to:
Retirement benefits	$	226	$	211
Accrued expenses	301		279
Insurance reserves	96		136
Net operating loss carryforwards	7		4
Bad debt reserves	104		128
State income tax	32		33
Deferred compensation	20		24
Investment basis difference	—		24
Unrealized losses on securities	41		—
Other	72		81
Total deferred tax assets	899		920
Deferred tax liabilities relating to:
Investment basis difference	52		—
Unrealized gains on securities	—		175
Intangible assets:
Trademarks and state Medicaid licenses	1,529		1,529
Customer, provider and hospital relationships	290		186
Internally developed software and other amortization differences	461		324
Retirement benefits	183		170
Debt discount	27		28
State deferred tax	105		105
Depreciation and amortization	47		41
Other	165		89
Total deferred tax liabilities	2,859		2,647
Net deferred tax liability	$	1,960	$	1,727

Components Of Provision For Income Taxes

Significant components of the provision for income taxes for the years ended December 31, 2018, 2017 and 2016 consist of the following:



	2018		2017			2016
Current tax expense:
Federal	$	1,128	$	1,356		$	1,862
State and local	78		39			94
Total current tax expense	1,206		1,395			1,956
Deferred tax expense (benefit)	112		(1,274		)	129
Total income tax expense	$	1,318	$	121		$	2,085

Reconciliation Of Income Tax Expense Computed At The Statutory Federal Income Tax Rate

A reconciliation of income tax expense recorded in the consolidated statements of income and amounts computed at the statutory federal income tax rate for the years ended December 31, 2018, 2017 and 2016 is as follows:



	2018					2017					2016
	Amount			Percent		Amount			Percent		Amount			Percent
Amount at statutory rate	$	1,064		21.0	%	$	1,387		35.0	%	$	1,594		35.0	%
State and local income taxes net of federal tax expense/benefit	63			1.2		(2		)	(0.1	)	62			1.4
Tax exempt interest and dividends received deduction	(27		)	(0.5	)	(58		)	(1.4	)	(62		)	(1.4	)
HIP Fee	324			6.4		—			—		412			9.0
Tax Cuts and Jobs Act	(28		)	(0.6	)	(1,108		)	(27.9	)	—			—
Other, net	(78		)	(1.5	)	(98		)	(2.5	)	79			1.8
Total income tax expense	$	1,318		26.0	%	$	121		3.1	%	$	2,085		45.8	%

Change In The Carrying Amount Of Gross Unrecognized Tax Benefits From Uncertain Tax Positions

The change in the carrying amount of gross unrecognized tax benefits from uncertain tax positions for the years ended December 31, 2018 and 2017 is as follows:



	2018			2017
Balance at January 1	$	190		$	131
Additions based on:
Tax positions related to current year	35			3
Tax positions related to prior years	50			83
Reductions based on:
Tax positions related to prior years	(31		)	(18		)
Settlements with taxing authorities	(3		)	(9		)
Balance at December 31	$	241		$	190