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Income Taxes Level 1 (Notes) | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Tax | Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions, as applicable. Income (loss) from continuing operations before income taxes included income from domestic operations of $2,017, $1,736 and $1,473 for the years ended December 31, 2015, 2014 and 2013, and losses from foreign operations of $(39), $(37) and $(2) for the years ended December 31, 2015, 2014 and 2013. The provision (benefit) for income taxes consists of the following:
| For the years ended December 31,
| 2015 | 2014 | 2013
Income Tax Expense (Benefit) |  |  |
Current - U.S. Federal | $ | (55 | ) | $ | (62 | ) | $ | 219 |
International | 3 |  | 2 |  | — |
Total current | (52 | ) | (60 | ) | 219 |
Deferred - U.S. Federal | 357 |  | 410 |  | 27 |
Total income tax expense | $ | 305 |  | $ | 350 |  | $ | 246 |
Deferred tax assets and liabilities on the consolidated balance sheets represent the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets (liabilities) include the following:
| As of December 31,
Deferred Tax Assets | 2015 | 2014
Tax discount on loss reserves | $ | 524 |  | $ | 573 |
Tax basis deferred policy acquisition costs | 162 |  | 163 |
Unearned premium reserve and other underwriting related reserves | 377 |  | 456 |
Investment-related items | 831 |  | 1,020 |
Insurance product derivatives | 90 |  | 44 |
Employee benefits | 655 |  | 677 |
Alternative minimum tax credit | 639 |  | 652 |
Net operating loss carryover | 1,831 |  | 1,936 |
Foreign tax credit carryover | 154 |  | 178 |
Capital loss carryover | 78 |  | 172 |
Total Deferred Tax Assets | 5,341 |  | 5,871 |
Valuation Allowance | (79 | ) | (181 | )
Deferred Tax Assets, Net of Valuation Allowance | 5,262 |  | 5,690 |
Deferred Tax Liabilities |  |
Financial statement deferred policy acquisition costs and reserves | (943 | ) | (1,040 | )
Net unrealized gains on investments | (842 | ) | (1,489 | )
Other depreciable and amortizable assets | (229 | ) | (217 | )
Other | (42 | ) | (47 | )
Total Deferred Tax Liabilities | (2,056 | ) | (2,793 | )
Net Deferred Tax Asset | $ | 3,206 |  | $ | 2,897 |
The Company has recorded a deferred tax asset valuation allowance that is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized. In assessing the need for a valuation allowance, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryovers, taxable income in open carry back years and other tax planning strategies. From time to time, tax planning strategies could include holding a portion of debt securities with market value losses until recovery, altering the level of tax exempt securities held, making investments which have specific tax characteristics, and business considerations such as asset-liability matching. Management views such tax planning strategies as prudent and feasible and would implement them, if necessary, to realize the deferred tax assets. As shown in the deferred tax assets (liabilities) table above, included in net deferred income taxes are 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 |  |  |  |
| December 31, 2015 | December 31, 2014 | Expiration
| Carryover amount | Expected tax benefit, gross | Carryover amount | Expected tax benefit, gross | Dates | Amount
Net operating loss carryover - U.S. | $ | 5,182 |  | $ | 1,814 |  | $ | 5,508 |  | $ | 1,928 |  | 2016 | - | 2020 | $ | 4 |
|  |  |  |  | 2023 | - | 2033 | $ | 5,178 |
Net operating loss carryover - foreign | $ | 89 |  | $ | 17 |  | $ | 39 |  | $ | 8 |  | No expiration | $ | 89 |
Foreign tax credit carryover | $ | 154 |  | $ | 154 |  | $ | 178 |  | $ | 178 |  | 2019 | - | 2024 | $ | 154 |
Capital loss carryover | $ | 222 |  | $ | 78 |  | $ | 491 |  | $ | 172 |  | 2019 | $ | 222 |
Alternative minimum tax credit carryover | $ | 639 |  | $ | 639 |  | $ | 652 |  | $ | 652 |  | No expiration | $ | 639 |
Net Operating Loss Carryover Due to limitations on the use of certain losses, a valuation allowance of $1 and $9 has been established as of December 31, 2015 and December 31, 2014, respectively, in order to recognize only the portion of net operating losses that will more likely than not be realized. The Company's effective tax rate for the year ended December 31, 2015 reflects an $8 benefit from the partial reduction of the deferred tax asset valuation allowance on the net operating loss carryover. Utilization of these loss carryovers is dependent upon the generation of sufficient future taxable income. 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 HLIKK subsidiary in 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 These credit carryovers 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 began 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 December 31, 2015 and December 31, 2014, the net deferred tax asset before valuation allowance included the expected tax benefit attributable to the capital loss carryover. The capital loss carryover is largely due to the loss on sale of HLIKK in 2014. As of December 31, 2015 and December 31, 2014, the associated deferred tax asset valuation allowance was $78 and $172, respectively. Utilization of the capital loss carryover requires the Company to realize taxable capital gains. The Company's effective tax rate for the year ended December 31, 2015 reflects a $94 benefit from the partial reduction of the deferred tax asset valuation on the capital loss carryover due to taxable gains on the termination of certain derivatives. The Company concluded that it is more likely than not that the remaining capital loss carryovers will not be realized. A reconciliation of the tax provision at the U.S. federal statutory rate to the provision (benefit) for income taxes is as follows:
| For the years ended December 31,
| 2015 | 2014 | 2013
Tax provision at U.S. federal statutory rate | $ | 692 |  | $ | 595 |  | $ | 515 |
Tax-exempt interest | (132 | ) | (138 | ) | (138 | )
Dividends received deduction | (156 | ) | (114 | ) | (139 | )
Increase (decrease) in valuation allowance | (102 | ) | 5 |  | (2 | )
Other | 3 |  | 2 |  | 10 |
Provision for income taxes | $ | 305 |  | $ | 350 |  | $ | 246 |
The Company’s effective tax rate for the year ended December 31, 2015 reflects a $36 net reduction in the provision for income taxes related to the release of reserves due to the resolution of uncertain tax positions consisting of a $48 reduction in the provision upon conclusion of the Internal Revenue Service audit of the Company's 2007-2011 federal consolidated corporate income tax returns, offset by a $12 increase in the provision due to the filing of the Company's 2014 federal consolidated income tax return. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| For the year ended December 31,
| 2015
Balance, beginning of period | $ | 48 |
Gross increases - tax positions in prior period | 12 |
Gross decreases - tax positions in prior period | (48 | )
Balance, end of period | $ | 12 |
The Company’s unrecognized tax benefits were unchanged during the years ended December 31, 2014, and 2013 remaining at $48 as of December 31, 2014, and 2013. The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. As of December 31, 2015, the Company had a current income tax payable of $5. 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 adjustments that may result from tax examinations and other tax-related matters for all open tax years. The Company classifies interest and penalties (if applicable) as income tax expense in the consolidated financial statements. The Company recognized interest expense of $0, $0, and $5 for the years ended December 31, 2015, 2014 and 2013, respectively. The Company had approximately $0 and $1 of interest payable as of December 31, 2015 and 2014, respectively. The Company does not believe it would be subject to any penalties in any open tax years and, therefore, has not recorded any accrual for penalties.

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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/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
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