INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Provision for Income Taxes

The provision for income taxes consisted of the following for the years ended December 31, 2013, 2012 and 2011:

	2013		2012			2011
	(in millions)
Current provision:
Federal	$	595	$	708		$	732
States and Puerto Rico		53		61			62
Total current provision		648		769			794
Deferred provision (benefit)		42		(80	)		22
Provision for income taxes	$	690	$	689		$	816

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, 2013, 2012 and 2011 due to the following:

	2013			2012			2011
	(in millions)
Income tax provision at federal statutory rate	$	672		$	669		$	782
States, net of federal benefit, and Puerto Rico		32			27			35
Tax exempt investment income		(26	)		(26	)		(25	)
Nondeductible executive compensation		6			14			11
Other, net		6			5			13
Provision for income taxes	$	690		$	689		$	816

Principal Components of Net Deferred Tax Balances

Principal components of our net deferred tax balances at December 31, 2013 and 2012 were as follows:

	Assets (Liabilities)
	2013			2012
	(in millions)
Future policy benefits payable	$	303		$	246
Compensation and other accrued expenses		185			174
Benefits payable		111			91
Net operating loss carryforward		49			203
Deferred acquisition costs		46			37
Unearned premiums		10			11
Capital loss carryforward		0			13
Other		12			9
Total deferred income tax assets		716			784
Valuation allowance		(28	)		(28	)
Total deferred income tax assets, net of valuation allowance		688			756
Depreciable property and intangible assets		(453	)		(465	)
Investment securities		(78	)		(265	)
Prepaid expenses		(83	)		(59	)
Total deferred income tax liabilities		(614	)		(789	)
Total net deferred income tax assets (liabilities)	$	74		$	(33	)
Amounts recognized in the consolidated balance sheets:
Other current assets	$	60		$	0
Other long-term assets		14			12
Trade accounts payable and accrued expenses		0			(45	)
Total net deferred income tax assets (liabilities)	$	74		$	(33	)