The provision for income tax from continuing operations was as follows:



	Years Ended December 31,
	2014		2013			2012
	(In millions)
Current:
Federal	$	901	$	789		$	675
State and local	3		2			2
Foreign	74		176			176
Subtotal	978		967			853
Deferred:
Federal	538		(411		)	346
Foreign	16		125			(144		)
Subtotal	554		(286		)	202
Provision for income tax expense (benefit)	$	1,532	$	681		$	1,055

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



	Years Ended December 31,
	2014		2013		2012
	(In millions)
Income (loss) from continuing operations:
Domestic	$	5,335	$	2,540	$	3,153
Foreign	56		282		545
Total	$	5,391	$	2,822	$	3,698

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



	Years Ended December 31,
	2014			2013			2012
	(In millions)
Tax provision at U.S. statutory rate	$	1,887		$	988		$	1,294
Tax effect of:
Dividend received deduction	(82		)	(66		)	(75		)
Tax-exempt income	(40		)	(42		)	(43		)
Prior year tax	11			29			10
Low income housing tax credits	(205		)	(190		)	(142		)
Other tax credits	(66		)	(44		)	(18		)
Foreign tax rate differential	—			2			3
Change in valuation allowance	—			(4		)	13
Other, net	27			8			13
Provision for income tax expense (benefit)	$	1,532		$	681		$	1,055

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,
	2014			2013
	(In millions)
Deferred income tax assets:
Policyholder liabilities and receivables	$	1,577		$	1,823
Net operating loss carryforwards	29			64
Employee benefits	1,015			649
Capital loss carryforwards	—			14
Tax credit carryforwards	979			909
Litigation-related and government mandated	259			223
Other	309			349
Total gross deferred income tax assets	4,168			4,031
Less: Valuation allowance	22			72
Total net deferred income tax assets	4,146			3,959
Deferred income tax liabilities:
Investments, including derivatives	2,402			2,021
Intangibles	72			77
DAC	1,568			1,600
Net unrealized investment gains	3,903			2,019
Other	36			27
Total deferred income tax liabilities	7,981			5,744
Net deferred income tax asset (liability)	$	(3,835	)	$	(1,785	)

See Note 1 for information regarding new guidance adopted by the Company related to the presentation of an unrecognized tax benefit.

The Company has recorded a $50 million reduction of valuation allowance as a balance sheet reclassification with other deferred tax assets. The valuation allowance reflects management’s assessment, based on available information, that it is more likely than not that the deferred income tax asset for certain state net operating loss carryforwards will not be realized. The tax benefit will be recognized when management believes that it is more likely than not that these deferred income tax assets are realizable.

The following table sets forth the domestic and state net operating loss carryforwards for tax purposes at December 31, 2014.



	Net Operating Loss Carryforwards
	Domestic		State
	(In millions)
Expiration
2015-2019	$	—	$	32
2020-2024	—		44
2025-2029	—		53
2030-2034	21		8
Indefinite	—		—
	$	21	$	137

The following table sets forth the general business credits, foreign tax credits, and other tax credit carryforwards for tax purposes at December 31, 2014.



	Tax Credit Carryforwards
	General Business Credits		Foreign Tax Credits		Other
	(In millions)
Expiration
2015-2019	$	—	$	—	$	—
2020-2024	—		301		—
2025-2029	4		—		—
2030-2034	832		—		—
Indefinite	—		—		32
	$	836	$	301	$	32

The Company participates in a tax sharing agreement with MetLife, Inc. as described in Note 1. Pursuant to this tax sharing agreement, the amounts due to (from) affiliates included ($24) million, $157 million and ($14) million for the years ended December 31, 2014, 2013 and 2012, respectively.

The Company files income tax returns with the U.S. federal government and various state and local jurisdictions, as well as foreign jurisdictions. The Company is under continuous examination by the Internal Revenue Service (“IRS”) and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to U.S. federal, state, or local income tax examinations for years prior to 2007, except for 2000 through 2006 where the IRS disallowance relates predominantly to certain tax credits claimed and the Company continues to protest.

During June 2014, the IRS concluded its audit of the Company’s tax returns for the years 2003 through 2006 and issued a Revenue Agent’s report. The Company agreed with certain tax adjustments and filed a protest in July 2014 for other tax adjustments. Management believes it has established adequate tax liabilities and final resolution of the audit for the years 2003 through 2006 is not expected to have a material impact on the Company’s financial statements.

The Company’s liability for unrecognized tax benefits may increase or decrease in the next 12 months. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its consolidated financial statements, although the resolution of income tax matters could impact the Company’s effective tax rate for a particular future period.

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



	Years Ended December 31,
	2014			2013			2012
	(In millions)
Balance at January 1,	$	532		$	532		$	525
Additions for tax positions of prior years	27			50			27
Reductions for tax positions of prior years	(13		)	(4		)	(5		)
Additions for tax positions of current year	3			3			—
Settlements with tax authorities	(3		)	(49		)	(15		)
Balance at December 31,	$	546		$	532		$	532
Unrecognized tax benefits that, if recognized would impact the effective rate	$	497		$	491		$	466

The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are included in income tax expense.

Interest was as follows:



	Years Ended December 31,
	2014		2013		2012
	(In millions)
Interest recognized in the consolidated statements of operations	$	37	$	17	$	8

			December 31,
			2014		2013
			(In millions)
Interest included in other liabilities in the consolidated balance sheets			$	265	$	228

The Company had no penalties for the years ended December 31, 2014, 2013 and 2012.

The U.S. Treasury Department and the IRS have indicated that they intend to address through regulations the methodology to be followed in determining the dividends received deduction (“DRD”), related to variable life insurance and annuity contracts. The DRD reduces the amount of dividend income subject to tax and is a significant component of the difference between the actual tax expense and expected amount determined using the federal statutory tax rate of 35%. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other interested parties will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing and substance of any such regulations are unknown at this time. For the years ended December 31, 2014 and 2013, the Company recognized an income tax benefit of $92 million and $53 million, respectively, related to the separate account DRD. The 2014 benefit included a benefit of $16 million related to a true-up of the 2013 tax return. The 2013 benefit included an expense of $7 million related to a true-up of the 2012 tax return.