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Income Taxes | 6 Months Ended
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Jun. 30, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following is a reconciliation of income taxes at the statutory rate of 35% to the provision for income taxes as shown in AFG’s Statement of Earnings (dollars in millions):
| Three months ended June 30, |  | Six months ended June 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
| Amount |  | % of EBT |  | Amount |  | % of EBT |  | Amount |  | % of EBT |  | Amount |  | % of EBT
Earnings before income taxes (“EBT”) | $ | 205 |  |  |  |  | $ | 136 |  |  |  |  | $ | 428 |  |  |  |  | $ | 292 |  |  |
Income taxes at statutory rate | $ | 72 |  |  | 35 | % |  | $ | 47 |  |  | 35 | % |  | $ | 150 |  |  | 35 | % |  | $ | 102 |  |  | 35 | %
Effect of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stock-based compensation | (7 | ) |  | (3 | %) |  | — |  |  | — | % |  | (13 | ) |  | (3 | %) |  | — |  |  | — | %
Tax exempt interest | (6 | ) |  | (3 | %) |  | (6 | ) |  | (4 | %) |  | (12 | ) |  | (3 | %) |  | (13 | ) |  | (4 | %)
Dividends received deduction | (2 | ) |  | (1 | %) |  | (2 | ) |  | (1 | %) |  | (4 | ) |  | (1 | %) |  | (4 | ) |  | (1 | %)
Employee Stock Ownership Plan dividends paid deduction | (2 | ) |  | (1 | %) |  | — |  |  | — | % |  | (2 | ) |  | — | % |  | (1 | ) |  | — | %
Change in valuation allowance | 2 |  |  | 1 | % |  | 32 |  |  | 24 | % |  | — |  |  | — | % |  | 33 |  |  | 11 | %
Subsidiaries not in AFG’s tax return | — |  |  | — | % |  | 1 |  |  | 1 | % |  | — |  |  | — | % |  | 2 |  |  | 1 | %
Other | 3 |  |  | 1 | % |  | 1 |  |  | (1 | %) |  | 9 |  |  | 2 | % |  | 6 |  |  | 1 | %
Provision for income taxes as shown in the statement of earnings | $ | 60 |  |  | 29 | % |  | $ | 73 |  |  | 54 | % |  | $ | 128 |  |  | 30 | % |  | $ | 125 |  |  | 43 | %
The favorable impact of stock-based compensation on AFG’s effective tax rate in the second quarter and first six months of 2017 reflects the high volume of employee stock option exercises during that period and the increase in the market price of AFG Common Stock. Excluding the $65 million charge in the second quarter of 2016 related to the exit of certain lines of business within Neon, AFG’s Lloyd’s-based insurer, AFG’s effective tax rate for the second quarter and six months ended June 30, 2016, was 36% and 35%, respectively. During the first six months of 2017, there were no material changes to AFG’s liability for uncertain tax positions.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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