Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes Tables [Abstract]

Componenets of income taxes

(In millions)	2012		2011		2010
Current taxes
U.S. income	$	604	$	320	$	267
Foreign income		72		58		45
State income		43		20		19
		719		398		331
Deferred taxes (benefits)
U.S. income		131		193		187
Foreign income		4		23		8
State income		(1)		1		(7)
		134		217		188
Total income taxes	$	853	$	615	$	519

Reconciliation of total taxes to nominal federal rate

(In millions)	2012		2011		2010
Tax expense at nominal rate	$	867	$	657	$	631
Tax-exempt interest income		(28)		(29)		(31)
Effect of permanently invested foreign earnings		(37)		(17)		(11)
Dividends received deduction		(3)		(4)		(3)
Resolution of federal tax matters		-		(30)		-
State income tax (net of federal income tax benefit)		28		14		9
Change in valuation allowance		6		5		(93)
Other		20		19		17
Total income taxes	$	853	$	615	$	519

Schedule of deferred income tax assets and liabilities

(In millions)	2012		2011
Deferred tax assets
Employee and retiree benefit plans	$	765	$	829
Investments, net		95		108
Other insurance and contractholder liabilities		486		443
Deferred gain on sale of businesses		28		46
Policy acquisition expenses		147		151
Loss carryforwards		9		8
Other accrued liabilities		164		109
Bad debt expense		21		17
Other		33		37
Deferred tax assets before valuation allowance		1,748		1,748
Valuation allowance for deferred tax assets		(42)		(45)
Deferred tax assets, net of valuation allowance		1,706		1,703
Deferred tax liabilities
Depreciation and amortization		704		377
Foreign operations, net		147		128
Unrealized appreciation on investments and foreign currency translation		481		395
Total deferred tax liabilities		1,332		900
Net deferred income tax assets	$	374	$	803

Reconciliation of unrecognized tax benefits

(In millions)	2012		2011		2010
Balance at January 1,	$	52	$	177	$	214
Decrease due to prior year positions		(5)		(113)		(55)
Increase due to current year positions		7		7		34
Reduction related to settlements with taxing authorities		-		(17)		(13)
Reduction related to lapse of applicable statute of limitations		(3)		(2)		(3)
Balance at December 31,	$	51	$	52	$	177