Income Tax (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Provision for income tax from continuing operations

The provision for income tax was as follows:

	Years Ended December 31,
	2016			2015		2014
	(In millions)
Current:
Federal	$	(374	)	$	35	$	(592	)
Foreign	4			—		6
Subtotal	(370		)	35		(586		)
Deferred:
Federal	(1,320		)	212		847
Foreign	—			—		—
Subtotal	(1,320		)	212		847
Provision for income tax expense (benefit)	$	(1,690	)	$	247	$	261

Income (loss) from continuing operations before income tax expense (benefit) from domestic and foreign operations

The Company’s income (loss) before income tax expense (benefit) from domestic and foreign operations were as follows:

	Years Ended December 31,
	2016			2015		2014
	(In millions)
Income (loss):
Domestic	$	(4,477	)	$	1,152	$	604
Foreign	12			13		464
Total	$	(4,465	)	$	1,165	$	1,068

Income tax for continuing operations effective rate reconciliation

The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported was as follows:

	Years Ended December 31,
	2016			2015			2014
	(In millions)
Tax provision at U.S. statutory rate	$	(1,563	)	$	408		$	374
Tax effect of:
Dividend received deduction	(110		)	(132		)	(119		)
Prior year tax	24			(5		)	(20		)
Tax credits	(22		)	(16		)	(14		)
Foreign tax rate differential	2			(5		)	4
Goodwill impairment	(20		)	—			12
Sale of subsidiary	(6		)	—			24
Other, net	5			(3		)	—
Provision for income tax expense (benefit)	$	(1,690	)	$	247		$	261

Components of deferred tax assets and liabilities

Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at:

	December 31,
	2016			2015
	(In millions)
Deferred income tax assets:
Investments, including derivatives	$	357		$	—
Tax credit carryforwards	184			172
Other	55			39
Total deferred income tax assets	596			211
Deferred income tax liabilities:
Policyholder liabilities and receivables	536			1,419
Investments, including derivatives	—			125
Intangibles	293			394
Net unrealized investment gains	653			818
DAC	1,565			1,390
Total deferred income tax liabilities	3,047			4,146
Net deferred income tax asset (liability)	$	(2,451	)	$	(3,935	)

Summary of Tax Credit Carryforwards

The following table sets forth the general business credits, foreign tax credits, and other credit carryforwards for tax purposes as of December 31, 2016.

	Tax Credit Carryforwards
	General Business Credits		Foreign Tax Credits		Other
	(In millions)
Expiration
2017-2021	$	—	$	—	$	—
2022-2026	—		35		—
2027-2031	—		—		—
2032-2036	7		—		—
Indefinite	—		—		145
	$	7	$	35	$	145

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:

	Years Ended December 31,
	2016			2015			2014
	(In millions)
Balance at January 1,	$	43		$	39		$	27
Additions for tax positions of prior years	1			5			15
Reductions for tax positions of prior years	(9		)	—			(5		)
Additions for tax positions of current year	5			3			2
Settlements with tax authorities	(2		)	(4		)	—
Balance at December 31,	$	38		$	43		$	39
Unrecognized tax benefits that, if recognized would impact the effective rate	$	38		$	33		$	29

Interest was as follows:

	Years Ended December 31,
	2016		2015		2014
	(In millions)
Interest recognized on the consolidated statements of operations	$	1	$	—	$	—
			December 31,
			2016		2015
			(In millions)
Interest included in other liabilities on the consolidated balance sheets			$	1	$	2