XML 66 R19.htm IDEA: XBRL DOCUMENT v3.22.2.2
Income Taxes
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
12. INCOME TAXES
INCOME TAX EXPENSE
Income Tax Rate Reconciliation
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Tax provision at U.S. federal statutory rate$91 $122 $321 $419 
Tax-exempt interest(9)(10)(26)(31)
Increase in deferred tax valuation allowance 6 (1)14 6 
Tax credits(7)(8)(10)(9)
Other 11 (2)1 (25)
Provision for income taxes$92 $101 $300 $360 
UNCERTAIN TAX POSITIONS
Rollforward of Unrecognized Tax Benefits
 
Three Months Ended September 30,
Nine Months Ended September 30,
 2022202120222021
Balance, beginning of period$18 $15 $16 $15 
Gross increases - tax positions in current period3 5 5 5 
Lapse of statute of limitations— (5)— (5)
Balance, end of period$21 $15 $21 $15 
The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. In the three and nine months ended September 30, 2021, the Company recognized $5 of its previously unrecognized tax benefits associated with dividends from segregated asset accounts of the life and annuity business sold in 2018. This liability was subject to a tax indemnification agreement and a corresponding receivable included in other assets was taken down upon lapse of the statute of limitations.
OTHER TAX MATTERS
As of September 30, 2022, the Company has a deferred tax asset for foreign net operating losses of $36 partially offset by a valuation allowance of $21. While the foreign net operating losses ("NOLs") do not expire, this assessment reflects uncertainty in the Company's ability to generate sufficient taxable income in the near term in those specific jurisdictions.
Management has assessed the need for a valuation allowance against its deferred tax assets based on tax character and jurisdiction. In making the assessment, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryovers, taxable income in open carry back years and other tax planning strategies which management views as prudent and feasible.
The federal income tax audits for the Company have been completed through 2013, and the Company is not currently under federal income tax examination for any open years. The statute of limitations is closed through the 2018 tax year with the exception of NOL carryforwards utilized in open tax years. Management believes that adequate provision has been made in the Company's Condensed Consolidated Financial Statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years.