INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

The provision for income taxes consisted of the following for the years ended December 31, 2021, 2020 and 2019:


	2021		2020		2019
	(in millions)
Current provision:
Federal	$	466	$	1,019	$	560
States and Puerto Rico	4		93		41
Total current provision	470		1,112		601
Deferred expense	15		195		162
Provision for income taxes	$	485	$	1,307	$	763

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, 2021, 2020 and 2019 due to the following:


	2021		2020		2019
	(in millions)
Income tax provision at federal statutory rate	$	718	$	982	$	729
States, net of federal benefit, and Puerto Rico	18		63		49
Tax exempt investment income	(3)		(5)		(6)
Nondeductible executive compensation	33		19		25
Non-taxable KAH gain	(264)		—		—
Health insurance industry fee	—		268		—

Other, net	(17)		(20)		(34)
Provision for income taxes	$	485	$	1,307	$	763

Principal Components of Net Deferred Tax Balances

Principal components of our net deferred tax balances at December 31, 2021 and 2020 were as follows:


	Assets (Liabilities)
	2021		2020
	(in millions)
Net operating loss carryforward	$	291	$	32
Compensation and other accrued expense	186		171
Benefits payable	67		87
Deferred acquisition costs	33		26
Jobs tax credits	33		—
Other	25		11
Unearned revenues	8		12



Total deferred income tax assets	643		339
Valuation allowance	(65)		(37)
Total deferred income tax assets, net of valuation allowance	578		302
Depreciable property and intangible assets	(1,072)		(449)
Prepaid expenses	(102)		(91)
Investment securities	(98)		(418)
Future policy benefits payable	(4)		(3)
Total deferred income tax liabilities	(1,276)		(961)
Total net deferred income tax liabilities	$	(698)	$	(659)