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Income Taxes | 12 Months Ended
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Dec. 31, 2022
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 before income taxes included income from domestic operations of $2,256, $2,910 and $2,222 for the years ended December 31, 2022, 2021 and 2020, and income (losses) from foreign operations of $2, $(14) and $(102) for the years ended December 31, 2022, 2021 and 2020. Income Tax Expense
| For the years ended December 31,
| 2022 | 2021 | 2020
Income tax expense (benefit) |  |  |
Current - U.S. federal | $ | 550 |  | $ | 486 |  | $ | 410 |
Foreign | (1) |  | 2 |  | — |
Total current | 549 |  | 488 |  | 410 |
Deferred - U.S. federal | (124) |  | 49 |  | (20) |
Foreign | 18 |  | (6) |  | (7) |
Total deferred | (106) |  | 43 |  | (27) |
Total income tax expense | $ | 443 |  | $ | 531 |  | $ | 383 |
Income Tax Rate Reconciliation
| For the years ended December 31,
| 2022 | 2021 | 2020
Tax provision at U.S. federal statutory rate | $ | 474 |  | $ | 608 |  | $ | 445 |
Nontaxable net investment income | (29) |  | (67) |  | (57) |
Other | (2) |  | (10) |  | (5) |
Provision for income taxes | $ | 443 |  | $ | 531 |  | $ | 383 |
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. 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 $4, $4 and $3 for the years ended December 31, 2022, 2021 and 2020, 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,
| 2022 | 2021
Deferred tax assets |  |
Loss reserves and tax discount | $ | 449 |  | $ | 386 |
Unearned premium reserve and other underwriting related reserves | 442 |  | 406 |
Investment-related items | — |  | 8 |
Employee benefits | 167 |  | 225 |
Net unrealized losses on investments | 668 |  | — |
Net operating loss carryover | 37 |  | 29 |
Other | 19 |  | — |
Total deferred tax assets | 1,782 |  | 1,054 |
Valuation allowance | (27) |  | (7) |
Deferred tax assets, net of valuation allowance | 1,755 |  | 1,047 |
Deferred tax liabilities |  |
Deferred acquisition costs | (146) |  | (129) |
Investment-related items | (48) |  | — |
Net unrealized gains on investments | — |  | (428) |
Other depreciable and amortizable assets | (112) |  | (216) |
Other | — |  | (4) |
Total deferred tax liabilities | (306) |  | (777) |
Net deferred tax asset | $ | 1,449 |  | $ | 270 |
As of December 31, 2022, the Company has a deferred tax asset for foreign net operating losses of $37 partially offset by a valuation allowance of $27. While the foreign net operating losses ("NOLs") do not expire, this assessment reflects uncertainty in the Company's ability to generate sufficient taxable income in the near term in those specific jurisdictions. Management has assessed the need for a valuation allowance against its deferred tax assets based on tax character and jurisdiction. In making the assessment, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences, the ability to hold assets to recovery, and carryovers, taxable income in open carry back years and other tax planning strategies which management views as prudent and feasible. Uncertain Tax Positions Rollforward of Unrecognized Tax Benefits
| For the years ended December 31, |  |
| 2022 | 2021 | 2020 |  |
Balance, beginning of period | $ | 16 |  | $ | 15 |  | $ | 14 |  |  |
Gross increases - tax positions in current period | 6 |  | 6 |  | 1 |  |  |
Lapse of statute of limitations | — |  | (5) |  | — |  |  |
Balance, end of period | $ | 22 |  | $ | 16 |  | $ | 15 |  |  |
The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. In 2021, the Company recognized $5 of its previously unrecognized tax benefits associated with dividends from segregated asset accounts of the life and annuity business sold in 2018. This liability was subject to a tax indemnification agreement and a corresponding receivable included in other assets has been taken down upon lapse of the statute of limitations. Other Tax Matters On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (“IRA”) which is generally effective for years beginning after December 31, 2022. Notably, the bill created a 15% corporate alternative minimum tax (“CAMT”) on corporations with three-year average financial statement income over $1 billion. The Internal Revenue Service has issued limited preliminary guidance. The Company has made certain interpretations and assumptions to comply with the CAMT. While the Company's financial statement income is over $1 billion, it is not expected the Company would have a CAMT liability. If CAMT is paid in the future, the amount would be indefinitely available as a credit carryforward that would reduce tax in future years and would be treated as a temporary item reflected within deferred taxes. The federal income tax audits for the Company have been completed through 2013, and the Company is not currently under federal income tax examination for any open years. The statute of limitations is closed through the 2018 tax year with the exception of NOL carryforwards utilized in open tax years. Management believes that adequate provision has been made in the Company's 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 expense of $1 in the year ended December 31, 2022 and net interest income of $1 and $1 for the years ended December 31, 2021 and 2020. 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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