Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022



	For the Years Ended December 31,
	2022			2021		2020
Current	$	(24	)	$	20	$	(59	)
Deferred		(305	)		273		3
Federal income tax expense (benefit)	$	(329	)	$	293	$	(56	)

Reconciliation Of The Effective Tax Rate Differences



	For the Years Ended December 31,
	2022			2021			2020
Income (loss) before taxes	$	(1,602	)	$	1,922		$	535
Federal statutory rate		21%			21%			21%
Federal income tax expense (benefit) at federal statutory rate		(336	)		404			112
Effect of:
Tax-preferred investment income ⁽¹⁾		(90	)		(88	)		(98	)
Tax credits		(42	)		(26	)		(39	)
Excess tax benefits from stock-based compensation		(1	)		-			2
Goodwill impairment		133			-			-
Tax impact associated with the Tax Cuts and Jobs Act ⁽²⁾		-			-			(37	)
Other items		7			3			4
Federal income tax expense (benefit)	$	(329	)	$	293		$	(56	)
Effective tax rate		21%			15%			-10%

⁽¹⁾Relates primarily to separate account dividends eligible for the dividends-received deduction.

⁽²⁾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,
	2022		2021
Current	$	353	$	382
Deferred		987		(3,022	)
Total federal income tax asset (liability)	$	1,340	$	(2,640	)

Significant components of deferred tax assets and liabilities



	As of December 31,
	2022		2021
Deferred Tax Assets
Future contract benefits and other contract holder funds	$	423	$	3,381
Reinsurance-related embedded derivative liability		-		121
Compensation and benefit plans		152		180
Intangibles		18		25
Net unrealized loss on fixed maturity AFS securities		2,131		-
Net unrealized loss on trading securities		70		-
Investment activity		266		-
Net operating losses		278		292
Other		180		103
Total deferred tax assets	$	3,518	$	4,102
Deferred Tax Liabilities
DAC	$	1,827	$	433
VOBA		275		147
Net unrealized gain on fixed maturity AFS securities		-		2,754
Net unrealized gain on trading securities		-		64
Investment activity		-		3,423
Reinsurance-related embedded derivative asset		143		-
Other		286		303
Total deferred tax liabilities	$	2,531	$	7,124
Net deferred tax asset (liability)	$	987	$	(3,022	)

Reconciliation Of Unrecognized Tax Benefits



	For the Years Ended
	December 31,
	2022		2021
Balance as of beginning-of-year	$	45	$	43
Increases for prior year tax positions		-		2
Balance as of end-of-year	$	45	$	45