INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

The provision for income taxes consisted of the following for the years ended December 31, 2016, 2015 and 2014:



	2016			2015			2014
	(in millions)
Current provision:
Federal	$	921		$	1,067		$	1,006
States and Puerto Rico	88			90			81
Total current provision	1,009			1,157			1,087
Deferred benefit	(71		)	(2		)	(64		)
Provision for income taxes	$	938		$	1,155		$	1,023

Provision for Income Taxes Using Federal Statutory Rate

The provision for income taxes was different from the amount computed using the federal statutory rate for the years ended December 31, 2016, 2015 and 2014 due to the following:



	2016			2015			2014
	(in millions)
Income tax provision at federal statutory rate	$	543		$	851		$	759
States, net of federal benefit, and Puerto Rico	41			44			48
Tax exempt investment income	(20		)	(24		)	(27		)
Health insurer fee	336			314			204
Nondeductible executive compensation	30			18			22
Concentra sale	—			(67		)	—
Other, net	8			19			17
Provision for income taxes	$	938		$	1,155		$	1,023

Principal Components of Net Deferred Tax Balances

Principal components of our net deferred tax balances at December 31, 2016 and 2015 were as follows.



	Assets (Liabilities)
	2016			2015
	(in millions)
Future policy benefits payable	$	355		$	200
Benefits payable	196			267
Compensation and other accrued expenses	153			130
Net operating loss carryforward	52			47
Deferred acquisition costs	72			64
Unearned revenues	18			22
Investment securities	12			—
Other	6			13
Total deferred income tax assets	864			743
Valuation allowance	(49		)	(42		)
Total deferred income tax assets, net of valuation allowance	815			701
Depreciable property and intangible assets	(363		)	(363		)
Prepaid expenses	(53		)	(45		)
Investment securities	—			(37		)
Total deferred income tax liabilities	(416		)	(445		)
Total net deferred income tax assets	$	399		$	256
Amounts recognized in the consolidated balance sheets:
Other long-term assets	$	399		$	256