Income Tax Level 3 (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

ncome taxes consists of the following:

	Successor Company			Predecessor Company
	June 1, 2018 to December 31, 2018			January 1, 2018 to May 31, 2018		For the years ended December 31,
						2017		2016
Income Tax Expense (Benefit)
Current - U.S. Federal	$	(15	)	$	1	$	4	$	2
Deferred - U.S. Federal	74			6		418		72
Total income tax expense	$	59		$	7	$	422	$	74

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred tax assets (liabilities) include the following:

	Successor Company			Predecessor Company
Deferred Tax Assets	As of December 31, 2018			As of December 31, 2017
Tax basis deferred policy acquisition costs	$	40		$	60
Unearned premium reserve and other underwriting related reserves	4			4
Financial statement DAC, VOBA and reserves	538			39
Investment-related items	—			155
Insurance product derivatives	—			12
Net operating loss carryover	206			681
Employee benefits	4			—
Foreign tax credit carryover	6			23
Net unrealized loss on investments	48			—
Deferred reinsurance gain	224			—
Other	12			29
Total Deferred Tax Assets	1,082			1,003
Deferred Tax Liabilities
Investment related items	(113		)	—
Net unrealized gains on investments	—			(398		)
Employee benefits	—			(49		)
Total Deferred Tax Liabilities	(113		)	(447		)
Net Deferred Tax Assets	$	969		$	556

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of the tax provision at the U.S. Federal statutory rate to the provision (benefit) for income taxes is as follows:

	Successor Company			Predecessor Company
	June 1, 2018 to December 31, 2018			January 1, 2018 to May 31, 2018			For the years ended December 31,
							2017			2016
Tax provision at U.S. Federal statutory rate	$	98		$	21		$	132		$	125
Dividends received deduction	(37		)	(12		)	(102		)	(76		)
Foreign related investments	(4		)	(3		)	(7		)	(7		)
Valuation allowance	—			—			—			31
Tax reform	—			(2		)	396			—
Other	2			3			3			1
Provision for income taxes	$	59		$	7		$	422		$	74

The separate account DRD is estimated for the current year using information from the most recent return, adjusted for current year equity market performance and other appropriate factors, including estimated levels of corporate dividend payments and level of policy owner equity account balances. The actual current year DRD can vary from estimates based on, but not limited to, changes in eligible dividends received in the mutual funds, amounts of distributions from these mutual funds, amounts of short-term capital gains at the mutual fund level and the Company’s taxable income before the DRD. The Company evaluates its DRD computations on a quarterly basis.