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Income Tax (Tables)

12 Months Ended

Dec. 31, 2014

Provision for income tax from continuing operations

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

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

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

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 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

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,
	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	)

Summary of net operating loss carryforwards for tax purposes

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

Summary of Tax Credit Carryforwards

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

Reconciliation of unrecognized tax benefits

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

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

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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