Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) for the years ended December 31, were as follows:



	2016			2015			2014
				(in thousands)
Current tax expense (benefit):
U.S. federal	$	2,524,458		$	76,175		$	(8,499	)
State and local	0			0			0
Total	2,524,458			76,175			(8,499		)
Deferred tax expense (benefit):
U.S. federal	(3,204,951		)	(84,460		)	17,103
State and local	0			0			0
Total	(3,204,951		)	(84,460		)	17,103
Total income tax expense (benefit)	(680,493		)	(8,285		)	8,604
Total income tax expense (benefit) reported in equity related to:
Other comprehensive income (loss)	(194,446		)	(20,708		)	7,407
Additional paid-in capital	(9,531		)	0			0
Total income tax expense (benefit)	$	(884,470	)	$	(28,993	)	$	16,011

Schedule of Income Before Income Tax, Domestic and Foreign

The Company’s actual income tax expense on continuing operations for the years ended December 31, differs from the expected amount computed by applying the statutory federal income tax rate of 35% to income from operations before income taxes for the following reasons:



	2016			2015			2014

	(in thousands)
Expected federal income tax expense (benefit)	$	(619,704	)	$	57,727		$	90,780
Non-taxable investment income	(49,630		)	(56,614		)	(69,122		)
Tax credits	(10,507		)	(9,389		)	(13,080		)
Other	(652		)	(9		)	26
Total income tax expense (benefit)	$	(680,493	)	$	(8,285	)	$	8,604

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at December 31, resulted from the items listed in the following table:



	2016		2015

	(in thousands)
Deferred tax assets
Insurance reserves	$	3,369,384	$	156,639
Investments	418,128		0
Net unrealized loss on securities	159,362		0
Other	440		833
Deferred tax assets	3,947,314		157,472
Deferred tax liabilities
VOBA and deferred policy acquisition cost	1,506,010		247,825
Investments	0		4,467
Deferred sales inducements	342,588		158,463
Net unrealized gain on securities	0		32,414
Deferred tax liabilities	1,848,598		443,169
Net deferred tax asset (liability)	$	2,098,716	$	(285,697	)