INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows:



	2016			2015			2014
	(In millions)
Income tax (expense) benefit:
Current (expense) benefit	$	(274	)	$	(19	)	$	(552	)
Deferred (expense) benefit	442			42			(488		)
Total	$	168		$	23		$	(1,040	)

Schedule of effective income tax rate reconciliation

The Federal income taxes attributable to consolidated operations are different from the amounts determined by multiplying the income before income taxes and noncontrolling interest by the expected Federal income tax rate of 35.0%. The sources of the difference and their tax effects are as follows:



	2016			2015			2014
	(In millions)
Expected income tax (expense) benefit	$	(135	)	$	(362	)	$	(1,478	)
Noncontrolling interest	162			119			114
Separate Accounts investment activity	160			181			116
Non-taxable investment income (loss)	15			8			12
Tax audit interest	(22		)	1			(6		)
State income taxes	(8		)	1			(4		)
AB Federal and foreign taxes	(4		)	—			2
Tax settlement	—			77			212
Other	—			(2		)	(8		)
Income tax (expense) benefit	$	168		$	23		$	(1,040	)

Schedule of net deferred income taxes

The components of the net deferred income taxes are as follows:



	December 31, 2016				December 31, 2015
	Assets		Liabilities		Assets		Liabilities
	(In millions)
Compensation and related benefits	$	88	$	—	$	93	$	—
Reserves and reinsurance	—		528		—		449
DAC	—		1,390		—		1,488
Unrealized investment gains or losses	—		23		—		134
Investments	—		1,062		—		1,475
Net operating losses and credits	394		—		424		—
Other	5		—		—		25
Total	$	487	$	3,003	$	517	$	3,571

Unrecognized tax benefits reconciliation

A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows:



	2016		2015			2014
	(In millions)
Balance at January 1,	$	418	$	475		$	592
Additions for tax positions of prior years	39		44			56
Reductions for tax positions of prior years	—		(101		)	(181		)
Additions for tax positions of current year	—		—			8
Balance at December 31,	$	457	$	418		$	475