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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The CNA Tax Group is included in the consolidated federal income tax return of Loews and its eligible subsidiaries. Loews and the Company have agreed that for each taxable year, the Company will 1) be paid by Loews the amount, if any, by which the Loews consolidated federal income tax liability is reduced by virtue of the inclusion of the CNA Tax Group in the Loews consolidated federal income tax return, or 2) pay to Loews an amount, if any, equal to the federal income tax that would have been payable by the CNA Tax Group filing a separate consolidated tax return. In the event that Loews should have a net operating loss in the future computed on the basis of filing a separate consolidated tax return without the CNA Tax Group, the Company may be required to repay tax recoveries previously received from Loews. This agreement may be canceled by either party upon 30 days written notice. For the years ended December 31, 2021, 2020 and 2019, the Company paid $238 million, $65 million and $239 million to Loews related to federal income taxes. For 2019 through 2021, Loews and the Company participated in the Internal Revenue Service (IRS) Compliance Assurance Process (CAP), which is a voluntary program for large corporations. Under CAP, the IRS conducted a real-time audit and worked contemporaneously with the Company to resolve any issues prior to the filing of the 2019 tax return. The 2019 examination has been completed. For 2020 and 2021, the Company was selected to participate in the phase of CAP reserved for taxpayers whose risk of noncompliance does not warrant use of IRS resources. The Company believes that participation in CAP should reduce tax-related uncertainties, if any. As of December 31, 2021 and 2020, there were no unrecognized tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits and tax refund claims in Income tax (expense) benefit on the Consolidated Statements of Operations. The Company recognizes penalties (if any) in Income tax (expense) benefit on the Consolidated Statements of Operations. During 2021, 2020 and 2019 the Company recognized no interest and no penalties. There were no amounts accrued for interest or penalties as of December 31, 2021 or 2020. The following table presents a reconciliation between the Company's income tax expense at statutory rates and the recorded income tax expense.
Years ended December 31 |  |  |  |  |
(In millions) | 2021 |  | 2020 |  | 2019
Income tax expense at statutory rates | $ | (312) |  |  | $ | (172) |  |  | $ | (257) |
Tax benefit from tax exempt income | 51 |  |  | 52 |  |  | 53 |
Foreign taxes and credits | (3) |  |  | 2 |  |  | (1) |
State income tax expense | (13) |  |  | (6) |  |  | (14) |
Other tax expense | (5) |  |  | (7) |  |  | (4) |
Income tax expense | $ | (282) |  |  | $ | (131) |  |  | $ | (223) |
As of December 31, 2021, no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax. The following table presents the current and deferred components of the Company's income tax expense.
Years ended December 31 |  |  |  |  |
(In millions) | 2021 |  | 2020 |  | 2019
Current tax expense | $ | (235) |  |  | $ | (180) |  |  | $ | (269) |
Deferred tax (expense) benefit | (47) |  |  | 49 |  |  | 46 |
Total income tax expense | $ | (282) |  |  | $ | (131) |  |  | $ | (223) |
Total income tax presented above includes foreign tax expense of approximately $18 million, $16 million and $19 million related to pretax income from foreign operations of approximately $124 million, $45 million and $43 million for the years ended December 31, 2021, 2020 and 2019. The deferred tax effects of the significant components of the Company's deferred tax assets and liabilities are presented in the following table.
December 31 |  |  |
(In millions) | 2021 |  | 2020
Deferred Tax Assets: |  |  |
Insurance reserves: |  |  |
Property and casualty claim and claim adjustment expense reserves | $ | 173 |  |  | $ | 157 |
Unearned premium reserves | 193 |  |  | 174 |
Deferred Revenue | 64 |  |  | 62 |
Employee benefits | 46 |  |  | 122 |
Deferred retroactive reinsurance benefit | 90 |  |  | 83 |
Other assets | 88 |  |  | 92 |
Gross deferred tax assets | 654 |  |  | 690 |
Deferred Tax Liabilities: |  |  |
Investment valuation differences | 93 |  |  | 28 |
Deferred acquisition costs | 99 |  |  | 93 |
Net unrealized gains | 272 |  |  | 453 |
Software and hardware | 27 |  |  | 31 |
Other liabilities | 21 |  |  | 19 |
Gross deferred tax liabilities | 512 |  |  | 624 |
Net deferred tax asset | $ | 142 |  |  | $ | 66 |
As of December 31, 2021, the CNA Tax Group had no loss carryforwards and no tax credit carryforward. The foreign operations had loss carryforwards of $138 million, of which $1 million expires in 2035 and $137 million has no expiration. The foreign operations had a tax credit carryforward of $4 million, which has no expiration. Although realization of deferred tax assets is not assured, management believes it is more likely than not that the recognized net deferred tax asset will be realized through recoupment of ordinary and capital taxes paid in prior carryback years and through future earnings, reversal of existing temporary differences and available tax planning strategies. As a result, no valuation allowance was recorded as of December 31, 2021 or 2020.

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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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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