XML 138 R39.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2

Federal Income Taxes (Tables)

12 Months Ended

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

X

- Definition

Disclosure of the components of the federal income tax asset or liability recognized in the entity's statement of financial position, including current and deferred tax assets and liabilities.

+ References

No definition available.

+ Details

Name:	lnc_ScheduleOfCurrentAndDeferredTaxAssetsAndLiabilitiesTextBlock
Namespace Prefix:	lnc_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration