Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of the deferred income tax assets and liabilities

The components of the deferred income tax assets and liabilities as of December 31 are as follows:



($ in millions)	2017			2016
Deferred assets
Deferred reinsurance gain	$	8		$	16
Other assets	2			4
Total deferred assets ⁽¹⁾	10			20
Deferred liabilities
Life and annuity reserves	(269		)	(362		)
Unrealized net capital gains	(223		)	(369		)
DAC	(221		)	(370		)
Difference in tax bases of investments	(79		)	(35		)
Other liabilities	(54		)	(75		)
Total deferred liabilities	(846		)	(1,211		)
Net deferred liability ⁽¹⁾	$	(836	)	$	(1,191	)

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⁽¹⁾	Changes in deferred tax assets and liabilities primarily relate to the Tax Legislation.

Components of income tax expense

The components of income tax (benefit) expense for the years ended December 31 are as follows:



($ in millions)	2017			2016		2015
Current	$	104		$	24	$	251
Deferred	(382		)	120		50
Total income tax (benefit) expense	$	(278	)	$	144	$	301

Reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations

A reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations for the years ended December 31 is as follows:



	2017		2016		2015
Statutory federal income tax rate - expense	35.0	%	35.0	%	35.0	%
Tax Legislation benefit	(71.8	)	—		—
Tax credits	(1.7	)	(3.3	)	(1.7	)
Dividends received deduction	(0.6	)	(1.3	)	(0.6	)
Adjustments to prior year tax liabilities	(0.3	)	—		(0.3	)
State income taxes	0.6		0.3		0.4
Non-deductible expenses	0.1		0.2		0.2
Change in accounting for investments in qualified affordable housing projects	—		—		2.0
Other	—		0.1		(0.1	)
Effective income tax rate (benefit) expense	(38.7	)%	31.0	%	34.9	%