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Federal Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Federal Income Taxes [Abstract]  
Federal Income Tax Expense For the Years Ended December 31, 2021 2020 2019 Current$ 20 $ (59)$ 175 Deferred 273 3 (212)Federal income tax expense (benefit)$ 293 $ (56)$ (37)
Reconciliation Of The Effective Tax Rate Differences For the Years Ended December 31, 2021 2020 2019 Income (loss) before taxes$ 1,922 $ 535 $ 577 Federal statutory rate 21% 21% 21% Federal income tax expense (benefit) at federal statutory rate 404 112 121 Effect of: Tax-preferred investment income (1) (88) (98) (99)Tax credits (26) (39) (40)Excess tax benefits from stock-based compensation - 2 (6)Tax impact associated with the Tax Cuts and Jobs Act (2) - (37) (16)Other items 3 4 3 Federal income tax expense (benefit)$ 293 $ (56)$ (37)Effective tax rate 15% -10% -6% (1)Relates primarily to separate account dividends eligible for the dividends-received deduction. (2)In 2019, we recognized a $16 million tax benefit from the impact of the reduced corporate tax rate under the Tax Cuts and Jobs Act (the “Tax Act”) on our election to revalue policyholder tax reserves. In 2020, we recognized a $37 million tax benefit attributable to the carry back of a 2020 net operating loss under the provisions of the Coronavirus Aid, Relief, and Economic Security Act, which provides for a five-year carryback period.
Federal Income Tax Asset (Liability) As of December 31, 2021 2020 Current$ 382 $ 381 Deferred (3,022) (3,422)Total federal income tax asset (liability)$ (2,640)$ (3,041)
Significant components of deferred tax assets and liabilities As of December 31, 2021 2020 Deferred Tax Assets Future contract benefits and other contract holder funds$ 3,381 $ 2,262 Reinsurance related embedded derivative asset 121 113 Compensation and benefit plans 180 163 Intangibles 25 27 Net operating losses 292 218 Other 103 5 Total deferred tax assets$ 4,102 $ 2,788 Deferred Tax Liabilities DAC$ 433 $ 418 VOBA 147 165 Net unrealized gain on fixed maturity AFS securities 2,754 3,836 Net unrealized gain on trading securities 64 88 Investment activity 3,423 1,299 Other 303 404 Total deferred tax liabilities$ 7,124 $ 6,210 Net deferred tax asset (liability)$ (3,022)$ (3,422)
Reconciliation Of Unrecognized Tax Benefits For the Years Ended December 31, 2021 2020 Balance as of beginning-of-year$ 43 $ 41 Increases for prior year tax positions 2 2 Balance as of end-of-year$ 45 $ 43