INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) applicable to pretax earnings for the years ended December 31 were as follows:

(In millions)	Foreign				U.S.				Total
2017:
Current		$	722			$	(91	)		$	631
Deferred		(24		)		(1,193		)		(1,217		)
Total income tax expense		$	698			$	(1,284	)		$	(586	)
2016:
Current		$	650			$	234			$	884
Deferred		136				388				524
Total income tax expense		$	786			$	622			$	1,408
2015:
Current		$	1,063			$	225			$	1,288
Deferred		42				(1		)		41
Total income tax expense		$	1,105			$	224			$	1,329

Schedule of Effective Income Tax Rate Reconciliation

The principal reasons for the differences and the related tax effects for the years ended December 31 were as follows:

(In millions)	2017				2016				2015
Income taxes based on U.S. statutory rates		$	1,406			$	1,424			$	1,352
Write-down of U.S. deferred tax liabilities for tax reform change		(1,933		)		0				0
Utilization of foreign tax credit		(27		)		(30		)		(27		)
Nondeductible expenses		10				8				3
Other, net		(42		)		6				1
Income tax expense		$	(586	)		$	1,408			$	1,329

Schedule of Income Tax Expense Benefit Intraperiod Tax Allocation

Total income tax expense for the years ended December 31 was allocated as follows:

(In millions)	2017				2016				2015
Statements of earnings		$	(586	)		$	1,408			$	1,329
Other comprehensive income (loss):
Unrealized foreign currency translation gains (losses) during period		52				70				16
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) on investment securities during period		575				962				(931		)
Reclassification adjustment for realized (gains) losses on investment securities included in net earnings		1				18				21
Unrealized gains (losses) on derivatives during period		0				1				0
Pension liability adjustment during period		3				(16		)		(7		)
Total income tax expense (benefit) related to items of other comprehensive income (loss)		631				1,035				(901		)
Additional paid-in capital (exercise of stock options)		0				(10		)		4
Total income taxes		$	45			$	2,433			$	432

Schedule of Deferred Tax Assets and Liabilities

The income tax effects of the temporary differences that gave rise to deferred income tax assets and liabilities as of December 31 were as follows:

(In millions)	2017				2016
Deferred income tax liabilities:
Deferred policy acquisition costs		$	3,285			$	4,065
Unrealized gains and other basis differences on investment securities		2,882				3,056
Premiums receivable		104				130
Policy benefit reserves		3,557				3,303
Total deferred income tax liabilities		9,828				10,554
Deferred income tax assets:
Unfunded retirement benefits		8				13
Other accrued expenses		141				39
Policy and contract claims		870				792
Foreign currency loss on Japan branch		67				185
Deferred compensation		155				243
Capital loss carryforwards		0				3
Depreciation		114				88
Anticipatory foreign tax credit		4,504				4,028
Other		57				107
Total deferred income tax assets before valuation allowance		5,916				5,498
Valuation allowance		(657		)		0
Total deferred income tax assets after valuation allowance		5,259				5,498
Net deferred income tax liability		4,569				5,056
Current income tax liability		176				331
Total income tax liability		$	4,745			$	5,387

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31:

(In millions)	2017			2016
Balance, beginning of year	$	294		$	264
Additions for tax positions of prior years	0			33
Reductions for tax positions of prior years	(280		)	(3		)
Balance, end of year	$	14		$	294