Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Componenets of income taxes

(In millions)	2013		2012		2011
Current taxes
U.S. income taxes	$	382	$	604	$	320
Foreign income taxes		77		72		58
State income taxes		42		43		20
		501		719		398
Deferred taxes (benefits)
U.S. income taxes		152		131		193
Foreign income taxes		46		4		23
State income taxes		(1)		(1)		1
		197		134		217
Total income taxes	$	698	$	853	$	615

Reconciliation of total taxes to nominal federal rate

(In millions)	2013		2012		2011
Tax expense at nominal rate	$	761	$	867	$	657
Tax advantaged investments		(30)		(31)		(33)
Effect of indefinitely reinvested foreign earnings		(42)		(37)		(17)
Resolution of federal tax matters		(18)		-		(30)
State income tax (net of federal income tax benefit)		27		28		14
Other		-		26		24
Total income taxes	$	698	$	853	$	615

Schedule of deferred income tax assets and liabilities

(In millions)	2013		2012
Deferred tax assets
Employee and retiree benefit plans	$	422	$	765
Investments, net		25		84
Other insurance and contractholder liabilities		407		486
Deferred gain on sale of businesses		39		39
Policy acquisition expenses		142		147
Other accrued liabilities		157		164
Bad debt expense		24		21
Other		40		42
Deferred tax assets before valuation allowance		1,256		1,748
Valuation allowance for deferred tax assets		(49)		(42)
Deferred tax assets, net of valuation allowance		1,207		1,706
Deferred tax liabilities
Depreciation and amortization		700		704
Foreign operations, net		162		147
Unrealized appreciation on investments and foreign currency translation		253		481
Total deferred tax liabilities		1,115		1,332
Net deferred income tax assets	$	92	$	374

Reconciliation of unrecognized tax benefits

(In millions)	2013		2012		2011
Balance at January 1,	$	51	$	52	$	177
Decrease due to prior year positions		(35)		(5)		(113)
Increase due to current year positions		6		7		7
Reduction related to settlements with taxing authorities		-		-		(17)
Reduction related to lapse of applicable statute of limitations		(5)		(3)		(2)
Balance at December 31,	$	17	$	51	$	52