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INCOME TAXES | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The provision for income taxes consisted of the following for the years ended December 31, 2022, 2021 and 2020:
| 2022 |  | 2021 |  | 2020
| (in millions)
Current provision: |  |  |  |  |
Federal | $ | 755 |  |  | $ | 466 |  |  | $ | 1,019 |
States and Puerto Rico | 107 |  |  | 4 |  |  | 93 |
Total current provision | 862 |  |  | 470 |  |  | 1,112 |
Deferred (benefit) expense | (100) |  |  | 15 |  |  | 195 |
Provision for income taxes | $ | 762 |  |  | $ | 485 |  |  | $ | 1,307 |
The provision for income taxes was different from the amount computed using the federal statutory rate for the years ended December 31, 2022, 2021 and 2020 due to the following:
| 2022 |  | 2021 |  | 2020
| (in millions)
Income tax provision at federal statutory rate | $ | 750 |  |  | $ | 718 |  |  | $ | 982 |
States, net of federal benefit, and Puerto Rico | 49 |  |  | 18 |  |  | 63 |
Tax exempt investment income | (3) |  |  | (3) |  |  | (5) |
Nondeductible executive compensation | 30 |  |  | 33 |  |  | 19 |
Non-taxable KAH gain | — |  |  | (264) |  |  | — |
Tax effect from sale of KAH Hospice | (72) |  |  | — |  |  | — |
Health insurance industry fee | — |  |  | — |  |  | 268 |
Other, net | 8 |  |  | (17) |  |  | (20) |
Provision for income taxes | $ | 762 |  |  | $ | 485 |  |  | $ | 1,307 |
Deferred income tax balances reflect the impact of temporary differences between the tax bases of assets or liabilities and their reported amounts in our consolidated financial statements, and are stated at enacted tax rates expected to be in effect when the reported amounts are actually recovered or settled. Principal components of our net deferred tax balances at December 31, 2022 and 2021 were as follows:
| Assets (Liabilities)
| 2022 |  | 2021
| (in millions)
Net operating loss carryforward | $ | 105 |  |  | $ | 291 |
Compensation and other accrued expense | 158 |  |  | 186 |
Benefits payable | 103 |  |  | 67 |
Deferred acquisition costs | 43 |  |  | 33 |
Jobs tax credits | 22 |  |  | 33 |
Other | 16 |  |  | 25 |
Unearned revenues | 7 |  |  | 8 |
Investment securities | 454 |  |  | — |
Total deferred income tax assets | 908 |  |  | 643 |
Valuation allowance | (57) |  |  | (65) |
Total deferred income tax assets, net of valuation allowance | 851 |  |  | 578 |
Depreciable property and intangible assets | (740) |  |  | (1,072) |
Prepaid expenses | (132) |  |  | (102) |
Investment securities | — |  |  | (98) |
Other | (6) |  |  | (4) |
Total deferred income tax liabilities | (878) |  |  | (1,276) |
Total net deferred income tax liabilities | $ | (27) |  |  | $ | (698) |
All deferred tax liabilities and assets are classified as noncurrent in our consolidated balance sheets as other long-term liabilities at December 31, 2022 and 2021. At December 31, 2022, we had approximately $68 million of federal net operating losses and approximately $1.6 billion of state and Puerto Rico net operating losses to carry forward. A portion of these loss carryforwards, if not used to offset future taxable income, will expire from 2031 through 2038. The balance of the net operating loss carryforwards has no expiration date. Due to limitations and uncertainty regarding our ability to use some of the loss carryforwards and certain other deferred tax assets, a valuation allowance of $57 million was established. For the remainder of the net operating loss carryforwards and other cumulative temporary differences, based on our historical record of producing taxable income and profitability, we have concluded that future operating income will be sufficient to recover these deferred tax assets. We file income tax returns in the United States and Puerto Rico. The U.S. Internal Revenue Service, or IRS, has completed its examinations of our consolidated income tax returns for 2020 and prior years. Our 2021 tax return is in the post-filing review period under the Compliance Assurance Process, or CAP. Our 2022 tax return is under advance review by the IRS under CAP. With a few exceptions, which are immaterial in the aggregate, we are no longer subject to state, local and foreign tax examinations for years before 2019. We are not aware of any material adjustments that may be proposed as a result of any ongoing or future examinations. We do not have material uncertain tax positions reflected in our consolidated balance sheets. On August 16, 2022, the Inflation Reduction Act was signed into law. The Inflation Reduction Act includes various tax provisions, which are effective for the tax years beginning on or after January 1, 2023. There was no material impact on our consolidated financial statements at December 31, 2022.

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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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