Income Taxes Level 3 (Tables)

12 Months Ended

Dec. 31, 2016

Operating Loss Carryforwards [Line Items]

Summary of Operating Loss Carryforwards [Table Text Block]



	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

Provision Benefit for Income Taxes [Table Text Block]

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

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

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

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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.