INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows:



	2017			2016			2015
	(in millions)
Income tax (expense) benefit:
Current (expense) benefit	$	(6	)	$	(274	)	$	(19	)
Deferred (expense) benefit	1,145			358			41
Total	$	1,139		$	84		$	22

Schedule of effective income tax rate reconciliation

The Federal income taxes attributable to consolidated operations are different from the amounts determined by multiplying the income before income taxes and noncontrolling interest by the expected Federal income tax rate of 35.0%. The sources of the difference and their tax effects are as follows:



	2017			2016			2015
	(in millions)
Expected income tax (expense) benefit	$	(789	)	$	(218	)	$	(363	)
Noncontrolling interest	175			162			118
Non-taxable investment income (loss)	250			175			189
Tax audit interest	(6		)	(22		)	1
State income taxes	(3		)	(8		)	1
Tax settlements/Uncertain Tax Position Release	221			—			77
Change in Tax Law	1,308			—			—
Other	(17		)	(5		)	(1		)
Income tax (expense) benefit	$	1,139		$	84		$	22

Schedule of net deferred income taxes

The components of the net deferred income taxes are as follows:



	December 31, 2017				December 31, 2016
	Assets		Liabilities		Assets		Liabilities
	(in millions)
Compensation and related benefits	$	47	$	—	$	88	$	—
Net operating loss	—		—		—		—
Reserves and reinsurance	—		83		—		534
DAC	—		821		—		1,463
Unrealized investment gains (losses)	—		298		—		23
Investments	—		997		—		1,062
Alternative minimum tax credits	387		—		394		—
Other	67		—		5		—
Total	$	501	$	2,199	$	487	$	3,082

Unrecognized tax benefits reconciliation

A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows:



	2017			2016		2015
	(in millions)
Balance at January 1,	$	457		$	418	$	475
Additions for tax positions of prior years	28			39		44
Reductions for tax positions of prior years	(245		)	—		(101		)
Additions for tax positions of current year	—			—		—
Settlements with Tax Authorities	(33		)	—		—
Balance at December 31,	$	207		$	457	$	418
Unrecognized tax benefits that, if recognized, would impact the effective rate	172			329		293