Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) for the years ended December 31, were as follows:



	2016			2015			2014
	(in thousands)
Current tax expense (benefit):
U.S. Federal	$	(99,443	)	$	105,992		$	112,742
State and local	49			129			0
Total	(99,394		)	106,121			112,742
Deferred tax expense (benefit):
U.S. Federal	25,525			(116,762		)	24,327
Total	25,525			(116,762		)	24,327
Total income tax expense (benefit) from operations	(73,869		)	(10,641		)	137,069
Total income tax expense (benefit) reported in equity related to:
Other comprehensive income (loss)	3,322			(61,322		)	65,717
Additional paid-in capital	587			(6,560		)	(6,507		)
Total income tax expense (benefit)	$	(69,960	)	$	(78,523	)	$	196,279

Schedule of Effective Income Tax Rate Reconciliation

The Company’s actual income tax expense (benefit) for the years ended December 31, differs from the expected amount computed by applying the statutory federal income tax rate of 35% to income from operations before income taxes for the following reasons:



	2016			2015			2014
	(in thousands)
Expected federal income tax expense	$	112,472		$	174,077		$	320,866
Non-taxable investment income	(146,324		)	(161,407		)	(152,844		)
Tax credits	(30,916		)	(24,232		)	(32,881		)
Domestic production activities deduction, net	(9,488		)	0			0
Other	387			921			1,928
Total income tax expense (benefit) from operations	$	(73,869	)	$	(10,641	)	$	137,069

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at December 31, resulted from the items listed in the following table:



	2016			2015
	(in thousands)
Deferred tax assets
Insurance reserves	$	148,115		$	1,668,038
Other	1,966			1,442
Deferred tax assets	150,081			1,669,480
Deferred tax liabilities
Deferred policy acquisition costs	45,405			1,398,775
Deferred sales inducements	0			239,695
Net unrealized gains on securities	24,949			23,991
Investments	171,303			69,163
Deferred tax liabilities	241,657			1,731,624
Net deferred tax asset (liability)	$	(91,576	)	$	(62,144	)

Unrecognized Tax Benefits Reconciliation

The Company’s unrecognized tax benefits for the years ended December 31 are as follows:



	2016		2015		2014
	(in thousands)
Balance at January 1,	$	0	$	0	$	0
Increases in unrecognized tax benefits-prior years	4,744		0		0
(Decreases) in unrecognized tax benefits-prior years	0		0		0
Increases in unrecognized tax benefits-current year	4,744		0		0
(Decreases) in unrecognized tax benefits-current year	0		0		0
Settlements with taxing authorities	0		0		0
Balance at December 31,	$	9,488	$	0	$	0
Unrecognized tax benefits that, if recognized, would favorably impact the effective rate	$	9,488	$	0	$	0