XML 65 R15.htm IDEA: XBRL DOCUMENT
v3.2.0.727

Income Taxes Level 1 (Notes) | 6 Months Ended
--- | ---
Jun. 30, 2015
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | A reconciliation of the tax provision at the U.S. federal statutory rate to the provision (benefit) for income taxes is as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2015 | 2014 |  | 2015 | 2014
Tax provision at U.S. federal statutory rate | $ | 164 |  | $ | 53 |  |  | $ | 383 |  | 266 |
Tax-exempt interest | (33 | ) | (34 | ) |  | (67 | ) | (69 | )
Dividends-received deduction ("DRD") | (72 | ) | (26 | ) |  | (95 | ) | (53 | )
Valuation allowance | 4 |  | 3 |  |  | 3 |  | 3 |
Other | (6 | ) | 4 |  |  | (9 | ) | (4 | )
Provision for income taxes | $ | 57 |  | $ | — |  |  | $ | 215 |  | 143 |
The Company’s effective tax rate for the three and six months ended June 30, 2015 reflects a $48 reduction in the provision for income taxes related to uncertain tax positions due to the second quarter 2015 conclusion of the Internal Revenue Service audit of the Company's 2007-2011 federal consolidated corporate income tax returns. The federal audit of the years 2012 and 2013 began in March 2015 and is expected to be completed in 2016. Management believes that adequate provision has been made in the financial statements for any potential assessments that may result from tax examinations and other tax-related matters for all open tax years. The Company’s unrecognized tax benefits were $0 and $48 as of June 30, 2015 and December 31, 2014, respectively. The separate account DRD is estimated for the current year using information from the most recent return, adjusted for current year equity market performance and other appropriate factors, including estimated levels of corporate dividend payments and level of policy owner equity account balances. The actual current year DRD can vary from estimates based on, but not limited to, changes in eligible dividends received in the mutual funds, amounts of distribution from these mutual funds, amounts of short-term capital gains at the mutual fund level and the Company’s taxable income before the DRD. The Company evaluates its DRD computations on a quarterly basis. Net deferred income taxes include the future tax benefits associated with the net operating loss carryover, foreign tax credit carryover, capital loss carryover, and alternative minimum tax credit carryover as follows:
| As of |
| June 30, 2015 | December 31, 2014 | Expiration
| Carryover amount | Expected tax benefit, gross | Carryover amount | Expected tax benefit, gross | Dates | Amount
Net operating loss carryover | $ | 5,924 |  | $ | 2,065 |  | $ | 5,547 |  | $ | 1,936 |  | 2016 | - | 2017 | $ | 3 |
|  |  |  |  | 2023 | - | 2033 | $ | 5,863 |
|  |  |  |  | No expiration | $ | 58 |
Foreign tax credit carryover | $ | 168 |  | $ | 168 |  | $ | 178 |  | $ | 178 |  | 2018 | - | 2024 | $ | 168 |
Capital loss carryover | $ | 518 |  | $ | 181 |  | $ | 491 |  | $ | 172 |  | 2019 | $ | 491 |
|  |  |  |  | 2020 | $ | 27 |
Alternative minimum tax credit carryover | $ | 639 |  | $ | 639 |  | $ | 652 |  | $ | 652 |  | No expiration | $ | 639 |
Net Operating Loss Carryover As of June 30, 2015 and December 31, 2014, the net deferred tax asset included the expected tax benefit attributable to net operating losses of $5,924 and $5,547, respectively, consisting of U.S. losses of $5,868 and $5,508, respectively, and foreign losses of $56 and $39. If unutilized, the U.S. losses expire as follows: $3 from 2016-2017, $5,863 from 2023-2033. Utilization of these loss carryovers is dependent upon the generation of sufficient future taxable income. Due to limitations on the use of certain losses, a valuation allowance of $12 has been established as of June 30, 2015 and $9 as of December 31, 2014 in order to recognize only the portion of net operating losses that will more likely than not be realized. Most of the net operating loss carryover originated from the Company's U.S. and international annuity business, including from the hedging program. Given the sale of the Japan subsidiary in June 2014, and continued runoff of the U.S. fixed and variable annuity business, the exposure to taxable losses from the Talcott Resolution business is significantly lessened. Given the expected earnings of its property and casualty, group benefits and mutual fund businesses, the Company expects to generate sufficient taxable income in the future to utilize its net operating loss carryover net of the recorded valuation allowance. Although the Company projects there will be sufficient future taxable income to fully recover the remainder of the loss carryover, the Company's estimate of the likely realization may change over time. Alternative Minimum Tax Credit and Foreign Tax Credit Carryover As of June 30, 2015 and December 31, 2014, the net deferred tax asset included the expected tax benefit attributable to alternative minimum tax credit carryover of $639 and $652, respectively, and foreign tax credit carryover of $168 and $178, respectively. The alternative minimum tax credits have no expiration date and the foreign tax credit carryovers expire from 2018-2024. These credits are available to offset regular federal income taxes from future taxable income and although the Company believes there will be sufficient future regular federal taxable income, there can be no certainty that future events will not affect the ability to utilize the credits. Additionally, the use of the foreign tax credits generally depends on the generation of sufficient taxable income to first utilize all U.S. net operating loss carryover. However, the Company has identified and begun to purchase certain investments which allow for utilization of the foreign tax credits without first using the net operating loss carryover. Consequently, the Company believes it is more likely than not the foreign tax credit carryover will be fully realized. Accordingly, no valuation allowance has been provided on either the alternative minimum tax carryover or foreign tax credit carryover. Capital Loss Carryover As of June 30, 2015 and December 31, 2014, the net deferred tax asset included the expected tax benefit attributable to the capital loss carryover of $518 and $491, respectively. The capital loss carryover is largely due to the loss on sale of HLIKK. If unutilized, $491 of the capital loss carryover will expire in 2019 and $27 in 2020. Utilization of the capital loss carryover requires the Company to realize sufficient taxable capital gains. While the Company has some ability to utilize the capital loss carryover by generating capital gains through tax planning strategies, the Company concluded that it is more likely than not that a portion of this asset will not be realized and, accordingly, in 2014, the Company recorded a valuation allowance of $172 through discontinued operations.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration