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Income Taxes Level 1 (Notes) | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Tax | The 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 $878, $2,017 and $1,736 for the years ended December 31, 2016, 2015 and 2014, and losses from foreign operations of $74, $39 and $37 for the years ended December 31, 2016, 2015 and 2014. Income Tax Expense (Benefit)
| For the years ended December 31,
| 2016 | 2015 | 2014
Income Tax Expense (Benefit) |  |  |
Current - U.S. Federal | $ | 12 |  | $ | (55 | ) | $ | (62 | )
International | — |  | 3 |  | 2 |
Total current | 12 |  | (52 | ) | (60 | )
Deferred - U.S. Federal | (101 | ) | 357 |  | 410 |
International | (3 | ) | — |  | — |
Total deferred | (104 | ) | 357 |  | 410 |
Total income tax expense (benefit) | $ | (92 | ) | $ | 305 |  | $ | 350 |
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)
| As of December 31,
Deferred Tax Assets | 2016 | 2015
Tax discount on loss reserves | $ | 508 |  | $ | 524 |
Tax basis deferred policy acquisition costs | 144 |  | 162 |
Unearned premium reserve and other underwriting related reserves | 390 |  | 377 |
Investment-related items | 593 |  | 831 |
Insurance product derivatives | 79 |  | 90 |
Employee benefits | 517 |  | 655 |
Alternative minimum tax credit | 640 |  | 639 |
General business credit carryover | 99 |  | — |
Net operating loss carryover | 1,894 |  | 1,831 |
Foreign tax credit carryover | 56 |  | 154 |
Capital loss carryover | — |  | 78 |
Other | 117 |  | — |
Total Deferred Tax Assets | 5,037 |  | 5,341 |
Valuation Allowance | — |  | (79 | )
Deferred Tax Assets, Net of Valuation Allowance | 5,037 |  | 5,262 |
Deferred Tax Liabilities |  |
Financial statement deferred policy acquisition costs and reserves | (676 | ) | (943 | )
Net unrealized gains on investments | (837 | ) | (842 | )
Other depreciable and amortizable assets | (243 | ) | (229 | )
Other | — |  | (42 | )
Total Deferred Tax Liabilities | (1,756 | ) | (2,056 | )
Net Deferred Tax Asset | $ | 3,281 |  | $ | 3,206 |
A deferred tax valuation allowance has not been recorded because the Company believes the deferred tax assets 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, alternative minimum tax credit carryover, and general business credit carryover. Future Tax Benefits
| As of |  |  |  |
| December 31, 2016 | December 31, 2015 | Expiration
| Carryover amount | Expected tax benefit, gross | Carryover amount | Expected tax benefit, gross | Dates | Amount
Net operating loss carryover - U.S. | $ | 5,412 |  | $ | 1,894 |  | $ | 5,182 |  | $ | 1,814 |  | 2020 | $ | 1 |
|  |  |  |  | 2023 | - | 2036 | $ | 5,411 |
Net operating loss carryover - foreign [1] | $ | 48 |  | $ | 9 |  | $ | 89 |  | $ | 17 |  | No expiration | $ | 48 |
Foreign tax credit carryover | $ | 56 |  | $ | 56 |  | $ | 154 |  | $ | 154 |  | 2020 | - | 2024 | $ | 56 |
Capital loss carryover | $ | — |  | $ | — |  | $ | 222 |  | $ | 78 |  | — | $ | — |
Alternative minimum tax credit carryover | $ | 640 |  | $ | 640 |  | $ | 639 |  | $ | 639 |  | No expiration | $ | 640 |
General business credit carryover | $ | 99 |  | $ | 99 |  | $ | — |  | $ | — |  | 2031 | - | 2036 | $ | 99 |
[1] | Related to subsidiaries included in the sale of the U.K. property and casualty run-off business and part of the assets held for sale. For additional information, see note 2 - Business Acquisitions, Dispositions and Discontinued Operations.
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 continued run-off 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. 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. Tax Credit Carryovers Alternative Minimum Tax Credits- These credit carryovers are available to offset regular federal income taxes from future taxable income and have no expiration date. Since the Company believes there will be sufficient regular federal taxable income in the future, and these credits have no expiration date, the Company believes it is more likely than not they will be fully utilized and thus no valuation allowance has been provided. Foreign Tax Credits- As with the alternative minimum tax credits these credits are available to offset regular federal income taxes from future taxable income. The use of these credits prior to expiration depends on the generation of sufficient taxable income to first utilize all U.S. net operating loss carryovers. 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. General Business Credits- In 2016 the Company invested in solar energy partnerships which generated $96 of solar tax credits which will be carried forward. Solar credits may offset all tax liability including alternative minimum tax; thus, the Company believes it is more likely than not the credits will be fully utilized and, accordingly, no valuation allowance has been provided. Income Tax Rate Reconciliation
| For the years ended December 31,
| 2016 | 2015 | 2014
Tax provision at U.S. federal statutory rate | $ | 282 |  | $ | 692 |  | $ | 595 |
Tax-exempt interest | (124 | ) | (132 | ) | (138 | )
Dividends received deduction | (82 | ) | (156 | ) | (114 | )
Decrease in valuation allowance | (79 | ) | (102 | ) | 5 |
Solar credits | (79 | ) | — |  | — |
Sale of HFPI and foreign rate differential | (37 | ) | — |  | — |
Other [1] | 27 |  | 3 |  | 2 |
Provision (benefit) for income taxes | $ | (92 | ) | $ | 305 |  | $ | 350 |
[1] | Primarily relates to IRS audit adjustments of $33 related to prior tax years.
In addition to the effect of tax-exempt interest and the dividends received deduction, the Company's effective tax rate for the year ended December 31, 2016 reflects a federal income tax benefit of $79 due to a reduction of the deferred tax valuation allowance related to capital loss carryovers, which are fully utilized. Additionally, reflected above is a benefit due to the investment in solar energy partnerships of $79. The total tax benefit from the transaction was $113 which includes the tax effects of the related financial statement realized loss from writing down the investments in the partnerships. Also included is a tax benefit primarily due to the sale of the Company's U.K. property and casualty run-off subsidiaries. The tax benefit of $37 relates to the difference between the tax basis and book basis of the Company's investment in the subsidiaries net of additional foreign tax rate differentials. The total estimated tax benefit recognized related to the sale of the U.K. property and casualty run-off subsidiaries was $76. For discussion of this transaction, see Note 2 - Business Acquisitions, Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements. 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, partially offset by a $12 increase in the provision due to the filing of the Company's 2014 federal consolidated income tax return. Roll-forward of Unrecognized Tax Benefits
| For the years ended December 31,
| 2016 | 2015 | 2014
Balance, beginning of period | $ | 12 |  | $ | 48 |  | $ | 48 |
Gross increases - tax positions in prior period | — |  | 12 |  | — |
Gross decreases - tax positions in prior period | — |  | (48 | ) | — |
Balance, end of period | $ | 12 |  | $ | 12 |  | $ | 48 |
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, 2016, the Company had a current income tax receivable of $141. 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 2017. 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 no interest expense for the years ended December 31, 2016, 2015 and 2014. The Company had no interest payable as of December 31, 2016 and 2015. 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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
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