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Federal Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Federal Income Taxes [Abstract] |
Federal Income Tax Expense |
| For the Years Ended December 31, |
| 2019 |  | 2018 |  | 2017 |
Current | $ | 181 |  | $ | 91 |  | $ | 210 |
Deferred |  | (148 | ) |  | 153 |  |  | (1,159 | )
Federal income tax expense (benefit) | $ | 33 |  | $ | 244 |  | $ | (949 | )
Reconciliation of effective tax rate differences |
| For the Years Ended December 31, |
| 2019 |  | 2018 |  | 2017 |
Income (loss) before taxes | $ | 919 |  | $ | 1,885 |  | $ | 1,130 |
Federal statutory rate |  | 21% |  |  | 21% |  |  | 35% |
Federal income tax expense (benefit) at federal statutory rate |  | 193 |  |  | 396 |  |  | 396 |
Effect of: |  |  |  |  |  |  |  |  |
Tax-preferred investment income (1) |  | (99 | ) |  | (87 | ) |  | (280 | )
Tax credits |  | (40 | ) |  | (39 | ) |  | (29 | )
Excess tax benefits from stock-based compensation |  | (9 | ) |  | (5 | ) |  | (12 | )
Goodwill impairment |  | - |  |  | - |  |  | 316 |
Tax impact associated with the Tax Cuts and Jobs Act (2) |  | (17 | ) |  | (19 | ) |  | (1,322 | )
Other items |  | 5 |  |  | (2 | ) |  | (18 | )
Federal income tax expense (benefit) | $ | 33 |  | $ | 244 |  | $ | (949 | )
Effective tax rate |  | 4% |  |  | 13% |  |  | -84% |
(1)Relates primarily to separate account dividends eligible for the dividends-received deduction. As a result of the Tax Cuts and Jobs Act (the “Tax Act”), the recorded tax benefit for the separate account dividends-received deduction was substantially less in 2019 and 2018 as compared to 2017. (2)As a result of the enactment of the Tax Act in 2017, we remeasured our existing deferred tax balances at the prevailing corporate federal income tax rate of 21% and recognized a $1.3 billion tax benefit. In 2018, we recognized a $27 million net tax benefit from the impact of the reduced federal statutory rate under the Tax Act on our adoption of an Internal Revenue Service pronouncement related to variable annuity contracts. In 2019, we recognized a $17 million net tax benefit from the impact of the reduced corporate tax rate under the Tax Act on our election to revalue policyholder tax reserves.
Federal Income Tax Asset Liability |
| As of December 31, |
| 2019 |  | 2018 |
Current | $ | 60 |  | $ | (24 | )
Deferred |  | (2,443 | ) |  | (1,158 | )
Total federal income tax asset (liability) | $ | (2,383 | ) | $ | (1,182 | )
Significant components of deferred tax assets and liabilities |
| As of December 31, |
| 2019 |  | 2018 |
Deferred Tax Assets |  |  |  |  |  |
Future contract benefits and other contract holder funds | $ | 643 |  | $ | 649 |
Reinsurance related embedded derivative asset |  | 69 |  |  | 1 |
Compensation and benefit plans |  | 190 |  |  | 179 |
Intangibles |  | 26 |  |  | 40 |
Net operating losses |  | 216 |  |  | 264 |
Other |  | 14 |  |  | 56 |
Total deferred tax assets | $ | 1,158 |  | $ | 1,189 |
Deferred Tax Liabilities |  |  |  |  |  |
DAC | $ | 813 |  | $ | 1,339 |
VOBA |  | 194 |  |  | 305 |
Net unrealized gain on fixed maturity AFS securities |  | 2,308 |  |  | 338 |
Net unrealized gain on trading securities |  | 72 |  |  | 27 |
Investment activity |  | 109 |  |  | 332 |
Other |  | 105 |  |  | 6 |
Total deferred tax liabilities | $ | 3,601 |  | $ | 2,347 |
Net deferred tax asset (liability) | $ | (2,443 | ) | $ | (1,158 | )
Reconciliation Of Unrecognized Tax Benefits |
| For the Years Ended |
| December 31, |
| 2019 |  | 2018 |
Balance as of beginning-of-year | $ | 16 |  | $ | 11 |
Increases for prior year tax positions |  | 32 |  |  | - |
Increases for current year tax positions |  | - |  |  | 5 |
Balance as of end-of-year | $ | 48 |  | $ | 16 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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