Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of income tax provision (benefit)

The components of income tax provision attributable to continuing operations were as follows:



	Years Ended December 31,
	2013			2012			2011
	(in millions)
Current income tax
Federal	$	549		$	229		$	250
State and local	24			25			21
Foreign	37			31			23
Total current income tax	610			285			294
Deferred income tax
Federal	(102		)	37			90
State and local	(10		)	15			1
Foreign	(6		)	(2		)	(8		)
Total deferred income tax	(118		)	50			83
Total income tax provision	$	492		$	335		$	377

Geographic sources of pretax income

The geographic sources of pretax income from continuing operations were as follows:



	Years Ended December 31,
	2013		2012		2011
	(in millions)
United States	$	1,640	$	1,161	$	1,350
Foreign	330		77		97
Total	$	1,970	$	1,238	$	1,447

Reconciliation of the income tax provision

The principal reasons that the aggregate income tax provision attributable to continuing operations is different from that computed by using the U.S. statutory rate of 35% were as follows:



	Years Ended December 31,
	2013		2012		2011
Tax at U.S. statutory rate	35.0	%	35.0	%	35.0	%
Changes in taxes resulting from:
Dividend exclusion	(5.1	)	(5.9	)	(8.5	)
Low income housing tax credits	(2.7	)	(3.0	)	(1.1	)
Net income (loss) attributable to noncontrolling interests	(2.5	)	3.6		2.6
Foreign tax credits, net of addback	(0.9	)	(3.2	)	(2.2	)
Tax-exempt interest income	(0.9	)	(1.7	)	(1.3	)
State taxes, net of federal benefit	0.5		2.5		1.0
Taxes applicable to prior years	—		(2.5	)	0.2
Other, net	1.6		2.3		0.4
Income tax provision	25.0	%	27.1	%	26.1	%

Components of Deferred income tax assets and liabilities

Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. The significant components of the Company’s deferred income tax assets and liabilities, which are included net within other assets or other liabilities on the Consolidated Balance Sheets, were as follows:



	December 31,
	2013			2012
	(in millions)
Deferred income tax assets
Liabilities for future policy benefits and claims	$	918		$	1,320
Investment related	627			104
Deferred compensation	335			310
Investment impairments and write-downs	97			105
Loss carryovers and tax credit carryforwards	39			39
Other	61			54
Gross deferred income tax assets	2,077			1,932
Less: valuation allowance	(19		)	(16		)
Total deferred income tax assets	2,058			1,916
Deferred income tax liabilities
Deferred acquisition costs	749			701
Net unrealized gains on Available-for-Sale securities	352			708
Deferred sales inducement costs	145			142
Depreciation expense	138			164
Intangible assets	84			74
Other	113			82
Gross deferred income tax liabilities	1,581			1,871
Net deferred income tax assets	$	477		$	45

Reconciliation of gross unrecognized tax benefits (expense)

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits were as follows:



	2013			2012			2011
	(in millions)
Balance at January 1	$	116		$	184		$	75
Additions based on tax positions related to the current year	22			2			1
Additions for tax positions of prior years	74			25			95
Reductions for tax positions of prior years	(3		)	(83		)	(8		)
Settlements	—			(12		)	21
Balance at December 31	$	209		$	116		$	184

Income tax provision (benefit) amounts for items comprising other comprehensive income

The items comprising other comprehensive income (loss) are presented net of the following income tax provision (benefit) amounts:



	Years Ended December 31,
	2013			2012			2011
	(in millions)
Net unrealized securities gains (losses)	$	(344	)	$	238		$	90
Net unrealized derivatives gains (losses)	—			4			(15		)
Defined benefit plans	24			(9		)	(28		)
Foreign currency translation	3			7			(1		)
Net income tax provision (benefit)	$	(317	)	$	240		$	46