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Income Taxes Level 1 (Notes) | 3 Months Ended
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Mar. 31, 2017
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] |
Income Tax Rate Reconciliation
| Three Months Ended March 31,
| 2017 | 2016
Tax provision at U.S. federal statutory rate | $ | 170 |  | $ | 133 |
Tax-exempt interest | (30 | ) | (32 | )
Dividends-received deduction ("DRD") | (19 | ) | (22 | )
Decrease in valuation allowance | — |  | (25 | )
Stock compensation | (7 | ) | — |
Other | (5 | ) | 4 |
Provision for income taxes | $ | 109 |  | $ | 58 |
In addition to the effect of tax-exempt interest and DRD, the Company’s effective tax rate for the three months ended March 31, 2017 reflects a $7 federal income tax benefit related to a deduction for stock-based compensation that vested at a fair value per share greater than the fair value on the date of grant. The Company's effective tax rate for the three months ended March 31, 2016 reflects a $25 benefit from the partial reduction of the deferred tax asset valuation allowance on the capital loss carryover due to taxable gains on sales of investments during the period. 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.
Roll-forward of Unrecognized Tax Benefits
| Three Months Ended March 31,
| 2017 | 2016
Balance, beginning of period | $ | 12 |  | $ | 12 |
Gross increases - tax positions in prior period | — |  | — |
Gross decreases - tax positions in prior period | — |  | — |
Balance, end of period | $ | 12 |  | $ | 12 |
The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. The federal audit of the years 2012 and 2013 began in March 2015 and was completed as of March 31, 2017 with no additional adjustments. The Company has received notification from the Internal Revenue Service of its intention to audit the recently acquired subsidiary, Maxum, for its 2014 tax year. Management believes that adequate provision has been made in the consolidated financial statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years. 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.
Future Tax Benefits
| As of |
| March 31, 2017 | December 31, 2016 | Expiration
| Carryover amount | Expected tax benefit, gross | Carryover amount | Expected tax benefit, gross | Dates | Amount
Net operating loss carryover - U.S. | $ | 5,165 |  | $ | 1,808 |  | $ | 5,412 |  | $ | 1,894 |  | 2020 |  |  | $ | 1 |
|  |  |  |  | 2023 | - | 2036 | $ | 5,164 |
Net operating loss carryover - foreign [1] | $ | 51 |  | $ | 10 |  | $ | 48 |  | $ | 9 |  | No expiration | $ | 51 |
Foreign tax credit carryover | $ | 49 |  | $ | 49 |  | $ | 56 |  | $ | 56 |  | 2021 | - | 2024 | $ | 49 |
Capital loss carryover | $ | — |  | $ | — |  | $ | — |  | $ | — |  | 0 | $ | — |
Alternative minimum tax credit carryover | $ | 650 |  | $ | 650 |  | $ | 640 |  | $ | 640 |  | No expiration | $ | 650 |
General business credit carryover | $ | 90 |  | $ | 90 |  | $ | 99 |  | $ | 99 |  | 2031 | - | 2036 | $ | 90 |
[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 Disposition of Notes to Condensed Consolidated Financial Statements.
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 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. General Business Credits- General business credits are comprised primarily of solar credits acquired in 2016. 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.

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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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