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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | 16. INCOME TAXES Income Tax Expense 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 $2,644, $1,753 and $704 for the years ended December 31, 2019, 2018 and 2017, and income (losses) from foreign operations of $(84), $0 and $19 for the years ended December 31, 2019, 2018 and 2017. Income Tax Expense
| For the years ended December 31,
| 2019 | 2018 | 2017
Income Tax Expense (Benefit) |  |  |
Current - U.S. Federal | $ | 8 |  | $ | (18 | ) | $ | 116 |
Foreign | — |  | — |  | 1 |
Total current | 8 |  | (18 | ) | 117 |
Deferred - U.S. Federal | 476 |  | 286 |  | 866 |
Foreign | (9 | ) | — |  | 2 |
Total deferred | 467 |  | 286 |  | 868 |
Total income tax expense | $ | 475 |  | $ | 268 |  | $ | 985 |
Income Tax Rate Reconciliation
| For the years ended December 31,
| 2019 | 2018 | 2017
Tax provision at U.S. federal statutory rate | $ | 538 |  | $ | 368 |  | $ | 253 |
Tax-exempt interest | (56 | ) | (66 | ) | (123 | )
Dividends received deduction | (6 | ) | (2 | ) | (3 | )
Executive Compensation | 7 |  | 11 |  | — |
Stock-based compensation | (7 | ) | (5 | ) | (15 | )
Tax Reform | — |  | (39 | ) | 877 |
Other | (1 | ) | 1 |  | (4 | )
Provision for income taxes | $ | 475 |  | $ | 268 |  | $ | 985 |
Included in 2018 is a benefit of $39 related to Tax Reform, primarily due to the elimination of the sequestration fee on alternative minimum tax ("AMT") credits. Included in 2017 is an expense of $877 due to the effects of Tax Reform, primarily due to the reduction in net deferred tax assets as a result of the reduction in the federal corporate income tax rate from 35% to 21%. Deferred Taxes 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. In lieu of recording a benefit of the tax capital loss on the sale of the life and annuity business, the Company elected to retain tax net operating loss carryovers with an estimated benefit of $477 as of December 31, 2018. The Company predominantly pays non-income state taxes as a percentage of premiums written which are accounted for as policy acquisition costs. State income taxes were $5, $4 and $5 for the years ended December 31, 2019, 2018 and December 31, 2017, respectively, and are included in other expenses. The Hartford has not recorded state deferred taxes, including net deferred tax assets from state operating loss carryforwards because the Company does not expect to earn state taxable income to utilize such state tax benefits. Deferred Tax Assets (Liabilities)
| As of December 31,
| 2019 | 2018
Deferred Tax Assets |  |  |  |
Loss reserves and tax discount | $ | 214 |  | $ | 150 |
Unearned premium reserve and other underwriting related reserves | 385 |  | 355 |
Investment-related items | 130 |  | 183 |
Employee benefits | 287 |  | 287 |
Net operating loss carryover | 84 |  | 521 |
Other | 27 |  | 1 |
Total Deferred Tax Assets | 1,127 |  | 1,497 |
Valuation Allowance | (4 | ) | — |
Deferred Tax Assets, Net of Valuation Allowance | 1,123 |  | 1,497 |
Deferred Tax Liabilities |  |
Deferred acquisition costs | (143 | ) | (104 | )
Net unrealized gains on investments | (458 | ) | (7 | )
Other depreciable and amortizable assets | (223 | ) | (135 | )
Other | — |  | (3 | )
Total Deferred Tax Liabilities | (824 | ) | (249 | )
Net Deferred Tax Asset | $ | 299 |  | $ | 1,248 |
The Company had net operating loss ("NOL") carryforwards in the United States and the United Kingdom for which future tax benefits of $77 and $3 , respectively, have been recognized and are included in the table above as a component of the net deferred tax asset for the year ended December 31, 2019. The Company also has NOLs of $4 in other foreign jurisdictions for which a full valuation allowance of $4 has been established. Although the Company projects there will be sufficient future taxable income to fully recover the remainder of the NOL carryover for which benefits have been recognized, the Company's estimate of the likely realization may change over time. The U.S. NOL carryovers, if unused, would expire between 2028 and 2036. The foreign NOLs do not expire. With the exception of the foreign NOLs noted above, 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. Uncertain Tax Positions Rollforward of Unrecognized Tax Benefits
| For the years ended December 31,
| 2019 | 2018 | 2017
Balance, beginning of period | $ | 14 |  | $ | 9 |  | $ | 12 |
Gross increases - tax positions in prior period | — |  | 5 |  | 3 |
Gross decreases - tax positions in prior period | — |  | — |  | — |
Gross decreases - Tax Reform | — |  | — |  | (6 | )
Balance, end of period | $ | 14 |  | $ | 14 |  | $ | 9 |
The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. In addition, for the year ended December 31, 2018 the Company recorded a receivable of $5 related to a tax indemnification agreement associated with the life and annuity business sold in May 2018. The receivable is separate from the tax liability and is classified in other assets on the balance sheet. Other Tax Matters On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as Tax Reform. Tax Reform establishes new tax laws effective January 1, 2018, including, but not limited to, (1) reduction of the U.S. federal corporate income tax rate from 35% to 21%; (2) elimination of the corporate alternative minimum tax AMT and changing how existing AMT credits can be realized, (3) limitations on the deductibility of certain executive compensation, (4) changes to the discounting of statutory reserves for tax purposes, and (5) limitations on NOLs generated after December 31, 2017 though there is no impact to the Company’s current NOL carryforwards. Related to Tax Reform, the Company recorded a provisional net income tax expense of $877 in the period ending December 31, 2017. This net expense consisted of an $821 reduction of the Company’s deferred tax assets primarily due to the reduction in the U.S. federal corporate income tax rate and a $56 sequestration fee payable associated with refundable AMT credits. During 2018, the Company recorded income tax expense of $17 as measurement period adjustments related to Tax Reform due to the filing of the Company's 2017 federal income tax return and completion of the Aetna Group Benefits acquisition. In addition, the Company recorded an income tax benefit of $56, reflecting the elimination of the sequestration fee payable. In total, the Company recorded a net income tax benefit from Tax Reform of $39 in 2018. In July 2019, the Company received a $421 refund of alternative minimum tax AMT credits. As of December 31, 2019 the Company had remaining AMT credit carryovers of $410 which are reflected as a current income tax receivable within other assets in the accompanying Condensed Consolidated Balance Sheets. 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 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 realized in 2022. For the twelve months ended December 31, 2019, the Company offset $11 of regular tax liability with AMT credits. The federal audits for the Company have been completed through 2013, and the Company is not currently under federal examination for any open years. The statute of limitations is closed through the 2015 tax year with the exception of NOL carryforwards utilized in open tax years. Navigators Group is currently under federal audit for the 2016 year and has completed examinations through 2015. Management believes that adequate provision has been made in the Company's Condensed 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 net interest income of $1 for the year ended December 31, 2019, and $0 for the years ended 2018 and 2017. The Company had no interest payable as of December 31, 2019 and 2018. 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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