Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) for the years ended December 31 were as follows:

	2015			2014			2013
	(in millions)
Current tax expense (benefit)
U.S.	$	738		$	(80	)	$	(292	)
State and local	3			(7		)	16
Foreign	622			463			310
Total	1,363			376			34
Deferred tax expense (benefit)
U.S.	585			880			44
State and local	4			12			0
Foreign	120			(919		)	(1,136		)
Total	709			(27		)	(1,092		)
Total income tax expense (benefit) on continuing operations before equity in earnings of operating joint ventures	2,072			349			(1,058		)
Income tax expense on equity in earnings of operating joint ventures	(1		)	(2		)	19
Income tax expense on discontinued operations	0			6			3
Income tax expense (benefit) reported in equity related to:
Other comprehensive income	(2,213		)	4,249			(582		)
Stock-based compensation programs	(22		)	(29		)	(32		)
Total income taxes	$	(164	)	$	4,573		$	(1,650	)

Schedule of Effective Income Tax Rate Reconciliation

The Company’s actual income tax expense on continuing operations before equity in earnings of operating joint ventures for the years ended December 31 differs from the expected amount computed by applying the statutory federal income tax rate of 35% to income from continuing operations before income taxes and equity in earnings of operating joint ventures for the following reasons:

	2015			2014			2013
	(in millions)
Expected federal income tax expense (benefit)	$	2,719		$	616		$	(589	)
Non-taxable investment income	(341		)	(381		)	(319		)
Foreign taxes at other than U.S. rate	(51		)	146			(38		)
Low-income housing and other tax credits	(116		)	(127		)	(105		)
Reversal of acquisition opening balance sheet deferred tax items	0			53			55
Change in repatriation assertion	(3		)	32			0
Minority interest	(24		)	(19		)	(37		)
Medicare Part D	(10		)	3			(43		)
Change in tax law: active financing exception	(108		)	0			(2		)
Other	6			26			20
Total income tax expense (benefit) on continuing operations before equity in earnings of operating joint ventures	$	2,072		$	349		$	(1,058	)

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at December 31 resulted from the items listed in the following table:

	2015			2014
	(in millions)
Deferred tax assets(1)
Insurance reserves	$	2,878		$	3,930
Policyholders’ dividends	1,815			2,552
Net operating and capital loss carryforwards	181			256
Employee benefits	628			825
Investments	530			260
Other	0			285
Deferred tax assets before valuation allowance	6,032			8,108
Valuation allowance	(133		)	(277		)
Deferred tax assets after valuation allowance	5,899			7,831
Deferred tax liabilities(2)
Net unrealized investment gains	9,167			12,713
Deferred policy acquisition costs	4,179			4,049
Investments	0			0
Unremitted foreign earnings	290			512
Value of business acquired	903			924
Other	291			0
Deferred tax liabilities	14,830			18,198
Net deferred tax liability	$	(8,931	)	$	(10,367	)

Valuation Allowance For State Local And Foreign Deferred Tax Assets

The valuation allowance includes amounts recorded in connection with deferred tax assets as of December 31 as follows:

	2015		2014
	(in millions)
Valuation allowance related to state and local deferred tax assets	$	98	$	252
Valuation allowance related to foreign operations deferred tax assets	$	35	$	25

Operating And Capital Loss Carryforwards

The following table sets forth the federal, state and foreign operating, capital loss and tax credit carryforwards for tax purposes, as of December 31:

	2015		2014
	(in millions)
Federal net operating and capital loss carryforwards	$	0	$	0
State net operating and capital loss carryforwards(1)	$	3,687	$	5,895
Foreign operating loss carryforwards(2)	$	65	$	53
General business credits	$	0	$	136
Alternative minimum tax credits(3)	$	85	$	248

__________

(1) Expires between 2016 and 2034.

(2) $34 million expires between 2016 and 2025 and $31 million has an unlimited carryforward.

(3) Alternative minimum tax credits do not expire.

Schedule Of Repatriation

The following table sets forth the Company’s foreign operations and unremitted earnings for which the Company provides U.S. income taxes as of December 31, 2015:

Foreign Operation	Unremitted earnings for which the Company provides U.S. income taxes
Japanese insurance operations	- Pre-2014 U.S. GAAP earnings
	- Post-2013 realized and unrealized capital gains
	- An additional amount from Gibraltar Life and Prudential Gibraltar, not to exceed the deferred tax asset recorded in the Statements of Financial Position as of the acquisition date for Prudential Gibraltar and the Star and Edison Businesses
Korean insurance operations	Portion of post 2011 U.S. GAAP earnings
Certain operations in India, Germany, Taiwan, Brazil, and non-insurance operations in Japan	U.S. GAAP earnings

Undistributed Earnings Of Foreign Subsidiaries Assuming Permanent Reinvestment

Determining the tax liability that would arise if these earnings were remitted is not practicable.

	At December 31,
	2015		2014		2013
	(in millions)
Undistributed earnings of foreign subsidiaries (assuming indefinite reinvestment)	$	3,215	$	2,396	$	1,973

Unrecognized Tax Benefits Reconciliation

The Company’s unrecognized tax benefits for the years ended December 31 are as follows:

	2015		2014			2013
	(in millions)
Balance at January 1,	$	6	$	11		$	19
Increases in unrecognized tax benefits—prior years	0		0			0
(Decreases) in unrecognized tax benefits—prior years	0		0			(7		)
Increases in unrecognized tax benefits—current year	0		0			0
(Decreases) in unrecognized tax benefits—current year	0		0			0
Settlements with taxing authorities	0		(5		)	(1		)
Balance at December 31,	$	6	$	6		$	11
Unrecognized tax benefits that, if recognized, would favorably impact the effective rate	$	6	$	6		$	11

Amounts Recognized In Consolidated Financial Statements For Tax Related Interest And Penalties

The amounts recognized in the consolidated financial statements for tax-related interest and penalties for the years ended December 31 are as follows:

	2015		2014		2013
	(in millions)
Interest and penalties recognized in the consolidated statements of operations	$	0	$	2	$	1

	2015		2014
	(in millions)
Interest and penalties recognized in liabilities in the consolidated statements of financial position	$	4	$	4

Open Tax Years By Major Tax Jurisdictions

Listed below are the tax years that remain subject to examination, by major tax jurisdiction, as of December 31, 2015:

Major Tax Jurisdiction	Open Tax Years
United States	2007-2015
Japan	Fiscal years ended March 31, 2011-2015
Korea	Fiscal years ended March 31, 2011-2013, the periods ended December 31, 2014 and 2015