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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The sources of Income from operations before income taxes are as follows:

(In millions)			2021						2020						2019
United States			$	1,528					$	915					$	1,460
Foreign			872						1,940						1,212
Total			$	2,400					$	2,855					$	2,672

Schedule of Components of Income Tax Expense (Benefit)

The income tax expense (benefit) consisted of the following components:

(In millions)			2021						2020						2019
Current:
United States:
Federal			$	336					$	434					$	262
State			83						74						72
Foreign			354						244						305
			773						752						639
Future:
United States:
Federal			(125)						13						(14)
State			(14)						6						(2)
Foreign			65						78						(106)
			(74)						97						(122)
Income tax expense			$	699					$	849					$	517

Schedule of Effective Income Tax Rate Reconciliation

The differences between the effective income tax rate and the statutory U.S. federal income tax rate are as follows:

			2021						2020						2019
Statutory U.S. federal income tax rate			21.0		%				21.0		%				21.0		%
State income tax			1.9						1.7						2.5
Tax on international activities			7.2						4.2						3.3
Separation impact			—						3.4						(0.7)
Tax audit settlements			—						—						(5.6)
Other			(1.0)						(0.6)						(1.1)
Effective income tax rate			29.1		%				29.7		%				19.4		%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and payables as of December 31, 2021 and 2020 are as follows:

(In millions)			2021						2020
Future income tax benefits:
Insurance and employee benefits			$	198					$	109
Other assets basis differences			166						152
Other liabilities basis differences			512						487
Tax loss carryforward			175						258
Tax credit carryforward			24						63
Valuation allowances			(90)						(231)
Future income tax benefit			$	985					$	838
Future income tax payables:
Goodwill and intangible assets			$	(270)					$	(411)
Other asset basis differences			(307)						(336)
Future income tax payables			$	(577)					$	(747)

Summary of Valuation Allowance

Changes to valuation allowances consisted of the following:

(In millions)
Balance as of January 1, 2019						$	107
Additions charged to income tax expense						41
Reduction credited to income tax expense						(16)
Other adjustments						(4)
Balance as of December 31, 2019						$	128
Additions charged to income tax expense (1)						112
Reduction credited to income tax expense						(13)
Other adjustments						4
Balance as of December 31, 2020						$	231
Additions charged to income tax expense						32
Reduction credited to income tax expense						(22)
Other adjustments						(41)
Reclassified to held for sale						(110)
Balance as of December 31, 2021						$	90

(1) Includes $89 million relating to "Separation impact" discussed in section "Reconciliation of Effective Income Tax Rate."

Summary of Tax Credit Carryforwards

As of December 31, 2021, tax credit carryforwards and tax loss carryforwards, excluding amounts associated with Chubb entities, were as follows:

(In millions)			Tax Loss Carryforwards						Tax Credit Carryforwards
Expiration period:
2022-2026			$	100					$	7
2027-2031			58						5
2032-2041			32						4
Indefinite			599						8
Total			$	789					$	24

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amounts of unrecognized tax benefits and related interest expense is as follows:

(In millions)			2021						2020						2019
Balance at beginning of period			$	162					$	166					$	316
Additions for tax positions related to the current year			86						22						30
Additions for tax positions of prior years (1)			24						14						14
Reductions for tax positions of prior years (2)			(1)						(40)						(19)
Settlements			(18)						—						(175)
Reclassified as held for sale			(2)						—						—
Balance at end of period			$	251					$	162					$	166
Gross interest expense related to unrecognized tax benefits			$	8					$	6					$	8
Total accrued interest balance at end of period			$	35					$	25					$	25

(1) Includes $14 million related to acquisitions during the year ended December 31, 2021.

(2) Includes an adjustment of $37 million recorded in UTC Net investment for the year ended December 31, 2020 for tax positions of prior years.

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