INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

The provision for income taxes consisted of the following for the years ended December 31, 2017, 2016 and 2015:



	2017		2016			2015
	(in millions)
Current provision:
Federal	$	1,324	$	921		$	1,067
States and Puerto Rico	116		88			90
Total current provision	1,440		1,009			1,157
Deferred expense (benefit)	132		(71		)	(2		)
Provision for income taxes	$	1,572	$	938		$	1,155

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, 2017, 2016 and 2015 due to the following:



	2017			2016			2015
	(in millions)
Income tax provision at federal statutory rate	$	1,407		$	543		$	851
States, net of federal benefit, and Puerto Rico	80			41			44
Tax exempt investment income	(22		)	(20		)	(24		)
Health insurer fee	—			336			314
Nondeductible executive compensation	36			30			18
Tax reform	133			—			—
Concentra sale	—			—			(67		)
Other, net	(62		)	8			19
Provision for income taxes	$	1,572		$	938		$	1,155

Principal Components of Net Deferred Tax Balances

Principal components of our net deferred tax balances at December 31, 2017 and 2016 were as follows:



	Assets (Liabilities)
	2017			2016
	(in millions)
Future policy benefits payable	$	231		$	355
Benefits payable	113			196
Compensation and other accrued expenses	138			153
Net operating loss carryforward	53			52
Deferred acquisition costs	48			72
Unearned revenues	12			18
Investment securities	—			12
Other	1			6
Total deferred income tax assets	596			864
Valuation allowance	(49		)	(49		)
Total deferred income tax assets, net of valuation allowance	547			815
Depreciable property and intangible assets	(237		)	(363		)
Prepaid expenses	(44		)	(53		)
Investment securities	(49		)	—
Total deferred income tax liabilities	(330		)	(416		)
Total net deferred income tax assets	$	217		$	399