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Income Tax | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Tax | 19. Income Tax The provision for income tax was as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In millions)
Current: |  |  |  |  |
U.S. federal | $ | 159 |  |  | $ | 62 |  |  | $ | 271 |
U.S. state and local | 45 |  |  | 38 |  |  | 27 |
Non-U.S. | 1,074 |  |  | 795 |  |  | 882 |
Subtotal | 1,278 |  |  | 895 |  |  | 1,180 |
Deferred: |  |  |  |  |
U.S. federal | 536 |  |  | 837 |  |  | (115) |
U.S. state and local | — |  |  | (2) |  |  | 1 |
Non-U.S. | (1,513) |  |  | (179) |  |  | 443 |
Subtotal | (977) |  |  | 656 |  |  | 329 |
Provision for income tax expense (benefit) | $ | 301 |  |  | $ | 1,551 |  |  | $ | 1,509 |
The Company’s income (loss) before income tax expense (benefit) was as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In millions)
Income (loss): |  |  |  |  |
U.S. | $ | 2,681 |  |  | $ | 4,841 |  |  | $ | 2,970 |
Non-U.S. | 178 |  |  | 3,285 |  |  | 3,957 |
Total | $ | 2,859 |  |  | $ | 8,126 |  |  | $ | 6,927 |
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,
| 2022 |  | 2021 |  | 2020
| (In millions)
Tax provision at U.S. statutory rate | $ | 601 |  |  | $ | 1,706 |  |  | $ | 1,455 |
Tax effect of: |  |  |  |  |
Dividend received deduction | (20) |  |  | (40) |  |  | (34) |
Tax-exempt income | 15 |  |  | (36) |  |  | (45) |
Prior year tax (1), (2) | (15) |  |  | (127) |  |  | (27) |
Low income housing tax credits | (143) |  |  | (178) |  |  | (202) |
Other tax credits | (44) |  |  | (46) |  |  | (45) |
Foreign tax rate differential (3), (4), (5) | (110) |  |  | 267 |  |  | 414 |
Change in valuation allowance | — |  |  | 1 |  |  | (5) |
Other, net | 17 |  |  | 4 |  |  | (2) |
Provision for income tax expense (benefit) | $ | 301 |  |  | $ | 1,551 |  |  | $ | 1,509 |
__________________ (1)As discussed further below, prior year tax primarily includes non-cash benefits related to uncertain tax positions of $32 million and $117 million for the years ended December 31, 2022 and 2021, respectively. (2)For the year ended December 31, 2020, prior year tax primarily includes a $40 million tax benefit related to an Internal Revenue Service (“IRS”) audit matter. (3)For the year ended December 31, 2022, foreign tax rate differential includes tax charges of $12 million related to the U.S. tax on Global Intangible Low-Taxed Income (“GILTI”) of which $33 million is a current year charge offset by a $21 million tax benefit revising the 2021 estimate. (4)For the year ended December 31, 2021, foreign tax rate differential includes tax charges of $50 million related to the disposition of MetLife Poland and Greece, $41 million related to the sale of MetLife Seguros and $30 million related to the U.S. tax on GILTI, which included a $42 million 2021 charge offset by a $12 million tax benefit revising the 2020 estimate. See Note 3 for information on the Company’s business dispositions. (5)For the year ended December 31, 2020, foreign tax rate differential includes tax charges of $60 million and $24 million related to the sales of MetLife Seguros de Retiro and MetLife Russia, respectively, and $43 million related to the U.S. tax on GILTI. See Note 3 for information on the Company’s business dispositions. 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,
| 2022 |  | 2021
| (In millions)
Deferred income tax assets: |  |  |
Policyholder liabilities and receivables | $ | 1,496 |  |  | $ | 3,787 |
Net operating loss carryforwards (1) | 238 |  |  | 235 |
Employee benefits | 475 |  |  | 583 |
Capital loss carryforwards | 15 |  |  | 9 |
Tax credit carryforwards (2) | 590 |  |  | 825 |
Net unrealized investment losses | 5,319 |  |  | — |
Litigation-related and government mandated | 90 |  |  | 95 |
Other | 67 |  |  | — |
Total gross deferred income tax assets | 8,290 |  |  | 5,534 |
Less: Valuation allowance (1) | 291 |  |  | 299 |
Total net deferred income tax assets | 7,999 |  |  | 5,235 |
Deferred income tax liabilities: |  |  |
Investments, including derivatives | 1,691 |  |  | 4,167 |
Intangibles | 1,096 |  |  | 1,188 |
Net unrealized investment gains | — |  |  | 5,551 |
DAC | 2,707 |  |  | 3,471 |
Other | — |  |  | 362 |
Total deferred income tax liabilities | 5,494 |  |  | 14,739 |
Net deferred income tax asset (liability) | $ | 2,505 |  |  | $ | (9,504) |
__________________ (1)The Company has recorded a deferred tax asset of $238 million related to U.S. state and non-U.S. net operating loss carryforwards and an offsetting valuation allowance for the year ended December 31, 2022. Certain net operating loss carryforwards will expire between 2023 and 2042, whereas others have an unlimited carryforward period. (2)Tax credit carryforwards for the year ended December 31, 2022 primarily reflect general business credits expiring between 2039 and 2042 and are increased by $44 million related to unrecognized tax benefits. The Company has not provided for U.S. deferred taxes on the remaining excess of book bases over tax bases of certain investments in non-U.S. subsidiaries that are essentially permanent in duration. The amount of deferred tax liability related to the Company’s remaining basis difference in these non-U.S. subsidiaries was $302 million at December 31, 2022. The Company files income tax returns with the U.S. federal government and various U.S. state and local jurisdictions, as well as non-U.S. jurisdictions. The Company is under continuous examination by the 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 2017. In material non-U.S. jurisdictions, the Company is no longer subject to income tax examinations for years prior to 2015. In 2021, the Company filed amended Federal income tax returns with the IRS for MetLife, Inc. and subsidiaries for tax years 2014 through 2016. In 2022, the IRS reviewed and acknowledged acceptance of the 2014 through 2016 amended Federal income tax returns and closed the years to further audit. Accordingly, in 2022, the Company recorded a non-cash benefit to net income of $70 million, net of tax, comprised of a $67 million tax benefit recorded in provision for income tax expense (benefit) and a $4 million interest benefit ($3 million, net of tax) included in other expenses. In 2021, the Company filed amended Federal income tax returns with the IRS for MetLife, Inc. and subsidiaries for tax years 2010 through 2013. In 2021, the IRS reviewed and acknowledged acceptance of the 2010 through 2013 amended Federal income tax returns and closed the years to further audit. Accordingly, in 2021, the Company recorded a non-cash benefit to net income of $53 million in provision for income tax expense (benefit). In addition, in 2021, the IRS concluded its Federal income tax audit of American Life for tax years 2010 through 2013. Accordingly, in 2021, the Company recorded a non-cash benefit to net income of $42 million, net of tax, comprised of a $34 million tax benefit recorded in provision for income tax expense (benefit) and a $10 million interest benefit ($8 million, net of tax) included in other expenses. The Company filed refund claims in 2017 with the IRS for 2000 through 2002 to recover tax and interest predominantly related to the disallowance of certain foreign tax credits for which the Company received a statutory notice of deficiency in 2015 and paid the tax thereon. The disallowed foreign tax credits relate to certain non-U.S. investments held by MLIC in support of its life insurance business through a U.K. investment subsidiary that was structured as a joint venture until early 2009. In 2020, the Company received refunds from these claims filed in 2017, and as a result, the Company recorded a $28 million interest benefit ($22 million, net of tax) included in other expenses. The Company’s overall liability for unrecognized tax benefits may increase or decrease in the next 12 months. For example, U.S. federal tax legislation and regulation could impact unrecognized tax benefits. 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,
| 2022 |  | 2021 |  | 2020
| (In millions)
Balance at January 1, | $ | 163 |  |  | $ | 272 |  |  | $ | 256 |
Additions for tax positions of prior years | 42 |  |  | 19 |  |  | 16 |
Reductions for tax positions of prior years (1) | (93) |  |  | (112) |  |  | (1) |
Additions for tax positions of current year | 22 |  |  | 5 |  |  | 12 |
Reductions for tax positions of current year | (3) |  |  | (18) |  |  | — |
Settlements with tax authorities | (2) |  |  | (3) |  |  | (1) |
Lapses of statute of limitations | — |  |  | — |  |  | (10) |
Balance at December 31, | $ | 129 |  |  | $ | 163 |  |  | $ | 272 |
Unrecognized tax benefits that, if recognized, would impact the effective rate | $ | 80 |  |  | $ | 103 |  |  | $ | 203 |
__________________ (1) The decreases in 2022 and 2021 are primarily related to non-cash benefits from tax audit settlements. The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses. Interest was as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In millions)
Interest expense (benefit) recognized on the consolidated statements of operations (1) | $ | — |  |  | $ | (36) |  |  | $ | 12 |
|  |  | December 31,
|  |  | 2022 |  | 2021
|  |  | (In millions)
Interest included in other liabilities on the consolidated balance sheets |  |  | $ | 15 |  |  | $ | 15 |
__________________ (1) For the year ended December 31, 2021, the interest benefit is primarily related to a tax audit settlement of $10 million which was recorded in other expenses and a reclassification of $26 million to current income tax payable.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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