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Income Taxes | 3 Months Ended
--- | ---
Mar. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes |
Income Tax Rate Reconciliation
| Three Months Ended March 31,
| 2018 | 2017
Tax provision at U.S. federal statutory rate [1] | $ | 109 |  | $ | 140 |
Tax-exempt interest | (17 | ) | (30 | )
Executive compensation | 4 |  | — |
Stock-based compensation | (2 | ) | (7 | )
Tax reform | (3 | ) | — |
Other | — |  | (5 | )
Provision for income taxes | $ | 91 |  | $ | 98 |
[1]Due to the passage of tax reform on December 22, 2017, current and prior period federal statutory rates are reflected at 21% and 35% respectively.
Rollforward of Unrecognized Tax Benefits
| Three Months Ended March 31,
| 2018 | 2017
Balance, beginning of period | $ | 9 |  | $ | 12 |
Gross increases - tax positions in prior period | — |  | — |
Gross decreases - tax positions in prior period | — |  | — |
Balance, end of period | $ | 9 |  | $ | 12 |
The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. The federal audits have been completed through 2013, and the Company is not currently under examination for any open years. 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. 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 periods ended March 31, 2018 and 2017. The Company had no interest payable as of March 31, 2018 and 2017. 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. Net deferred income taxes include the future tax benefits associated with the net operating loss carryover, foreign tax credit carryover and general business credit carryforward as shown in the table below.
Future Tax Benefits
| As of |
| March 31, 2018 | Expiration
| Carryover amount | Expected tax benefit, gross | Dates | Amount
Net operating loss carryover - U.S. | $ | 3,087 |  | $ | 648 |  | 2020 | $ | 1 |
|  |  | 2023 | - | 2036 | $ | 3,086 |
Net operating loss carryover - foreign | $ | 4 |  | $ | — |  | No expiration | $ | 4 |
Foreign tax credit carryover | $ | 21 |  | $ | 21 |  | 2023 | - | 2024 | $ | 21 |
General business credit carryover | $ | 3 |  | $ | 3 |  | 2031 | - | 2037 | $ | 3 |
Net Operating Loss Carryover U.S. NOL's reflected above arose in taxable years prior to 2017 and are still subject to prior tax law which allows for carryback and limits the period over which carryforwards may be used to offset taxable income as shown in the above table. Utilization of the Company's loss carryovers is dependent upon the generation of sufficient future taxable income. The U.S. net operating loss carryover in the table above included $422 of NOL's of the life and annuity run-off business that the Company will retain. Given the expected earnings of the Company going forward, including 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 Foreign Tax Credits and General Business 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 purchased 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. Alternative Minimum Tax Credit Carryovers- As of March 31, 2018, the Company had an alternative minimum tax credit (AMT) carryover, net of a sequestration fee payable, of $793 which is reflected as a current income tax receivable within Other Assets in the accompanying condensed consolidated balance sheet. AMT credits may be used to offset a regular tax liability for any taxable year beginning after December 31, 2017, and are refundable at an amount equal to 50 percent of the excess of the minimum tax credit for the taxable year over the amount of the credit allowable for the year against regular tax liability. Any remaining credits not used against regular tax liability are refundable in the 2021 tax year to be collected in 2022. The sequestration fee applies to refunds of AMT credits but does not apply if those credits are used against regular tax liability. As of March 31, 2018, the Company's AMT credit carryover was net of an estimated sequestration fee payable of $53, but the amount of the fee that is ultimately payable is subject to change depending on the level and timing of future taxable income and any subsequent changes in the sequestration rate. During the first quarter of 2018, the Company recorded an income tax benefit of $3 related to the reduction of the sequestration rate from 6.6 percent to 6.2 percent.

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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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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