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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes
17. 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 $3,042, $2,260 and $2,919 for the years ended December 31, 2023, 2022 and 2021, and income (losses) from foreign operations of $46, $2 and $(14) for the years ended December 31, 2023, 2022 and 2021.
Income Tax Expense
 For the years ended December 31,
 202320222021
Income tax expense (benefit)   
Current - U.S. federal$582 $550 $486 
    Foreign— (1)2 
Total current582 549 488 
Deferred - U.S. federal6 (124)52 
 Foreign(4)18 (6)
Total deferred2 (106)46 
 Total income tax expense$584 $443 $534 
Income Tax Rate Reconciliation
 
For the years ended December 31,
 202320222021
Tax provision at U.S. federal statutory rate$648 $474 $611 
Nontaxable net investment income(41)(29)(67)
Other(23)(2)(10)
Provision for income taxes $584 $443 $534 
The current income tax payable of $18 and $56 as of December 31, 2023 and 2022, respectively, is included in other liabilities in the Consolidated Balance Sheets.
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 $3, $4 and $4 for the years ended December 31, 2023, 2022 and 2021, 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,
20232022
Deferred tax assets
Loss reserves and tax discount$517 $437 
Unearned premium reserve and other underwriting related reserves483 442 
Employee benefits172 167 
Net unrealized losses on investments387 668 
Net operating loss carryover45 37 
Other1 19 
Total deferred tax assets1,605 1,770 
Valuation allowance(12)(27)
Deferred tax assets, net of valuation allowance1,593 1,743 
Deferred tax liabilities
Deferred acquisition costs(163)(146)
Investment-related items(110)(48)
Other depreciable and amortizable assets(147)(112)
Total deferred tax liabilities(420)(306)
Net deferred tax asset$1,173 $1,437 
As of December 31, 2023, the Company has a deferred tax asset for foreign net operating losses ("NOLs") of $45 partially offset by a valuation allowance of $12. While the foreign 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,
 202320222021
Balance, beginning of period$22 $16 $15 
Gross increases - tax positions in current period5 6 6 
Lapse of statute of limitations(1)— (5)
Balance, end of period$26 $22 $16 

The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. The Company believes it is reasonably possible approximately $4 of its currently unrecognized tax benefits associated with R&D credits claimed on the Company's 2020 tax return may be recognized by the end of 2024 as a result of a lapse in the applicable statute of limitations. 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 some preliminary guidance and is expected to release more detailed proposed regulations in the coming year. 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. The acquired Navigators group is currently under IRS audit for the pre-acquisition 2019 tax period. The statute of limitations is closed through the 2019 tax year with the exception of NOL carryforwards utilized in open tax years and the Navigators pre-acquisition 2019 tax period. 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 $2 and $1 in the years ended December 31, 2023 and 2022 and net interest income of $1 for the year ended December 31, 2021, respectively. 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.