INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

The provision for income taxes consisted of the following for the years ended December 31, 2019, 2018 and 2017:



	2019		2018		2017
	(in millions)
Current provision:
Federal	$	560	$	139	$	1,324
States and Puerto Rico	41		58		116
Total current provision	601		197		1,440
Deferred expense	162		194		132
Provision for income taxes	$	763	$	391	$	1,572

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, 2019, 2018 and 2017 due to the following:



	2019			2018			2017
	(in millions)
Income tax provision at federal statutory rate	$	729		$	436		$	1,407
States, net of federal benefit, and Puerto Rico	49			42			80
Tax exempt investment income	(6		)	(11		)	(22		)
Health insurance industry fee	—			243			—
Nondeductible executive compensation	25			17			36
Tax reform	—			(39		)	133
KMG sale	—			(272		)	—
Other, net	(34		)	(25		)	(62		)
Provision for income taxes	$	763		$	391		$	1,572

Principal Components of Net Deferred Tax Balances

Principal components of our net deferred tax balances at December 31, 2019 and 2018 were as follows:



	Assets (Liabilities)
	2019			2018
	(in millions)
Compensation and other accrued expense	$	111		$	89
Benefits payable	89			79
Net operating loss carryforward	42			38
Deferred acquisition costs	22			17
Unearned revenues	8			9
Other	8			8
Capital loss carryforward	1			15
Investment securities	—			44
Total deferred income tax assets	281			299
Valuation allowance	(45		)	(54		)
Total deferred income tax assets, net of valuation allowance	236			245
Depreciable property and intangible assets	(329		)	(273		)
Investment securities	(181		)	—
Prepaid expenses	(64		)	(52		)
Future policy benefits payable	(3		)	(5		)
Total deferred income tax liabilities	(577		)	(330		)
Total net deferred income tax liabilities	$	(341	)	$	(85	)