Income Tax (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Pre-tax income for the years ended December 31, 2020, 2019 and 2018 consists of the following (dollars in millions): 

	2020		2019		2018
Pre-tax income - U.S.	$	79	$	871	$	626
Pre-tax income - foreign	474		261		220
Total pre-tax income	$	553	$	1,132	$	846

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision for income tax expense for the years ended December 31, 2020, 2019 and 2018 consists of the following (dollars in millions):

	2020		2019		2018
Current income tax expense (benefit):
U.S.	$	75	$	(9)	$	78
U.S. Tax Reform	—		—		(68)
Foreign	79		60		43
Total current	154		51		53
Deferred income tax expense (benefit):
U.S.	(60)		182		63
U.S. Tax Reform	—		—		6
Foreign	44		29		8
Total deferred	(16)		211		77
Total provision for income taxes	$	138	$	262	$	130

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The Company’s effective tax rate differed from the U.S. federal income tax statutory rate of 21% as a result of the following for the years ended December 31, 2020, 2019 and 2018 (dollars in millions):

	2020			2019			2018
Tax provision at U.S. statutory rate	$	116		$	238		$	178
Increase (decrease) in income taxes resulting from:
U.S. Tax Reform	—			—			(62)
Tax rate differences on income in other jurisdictions	21			2			4
Differences in tax basis in foreign jurisdictions	(32)			(23)			(23)
Deferred tax valuation allowance	10			56			23
Amounts related to uncertain tax positions	10			8			1
Equity based compensation	(1)			(8)			(6)
Corporate rate changes	13			(1)			1
GILTI, net of credits	13			—			10
Subpart F for non-full inclusion companies	—			1			1
Foreign tax credits	(7)			(6)			(3)
Return to provision adjustments	(4)			(6)			(1)
Other, net	(1)			1			7
Total provision for income taxes	$	138		$	262		$	130
Effective tax rate	24.9		%	23.1		%	15.4		%

Schedule Of Income Tax Expense Benefit Intraperiod Tax Allocation [Table Text Block]

Total income taxes for the years ended December 31, 2020, 2019 and 2018 were as follows (dollars in millions):

	2020		2019		2018
Provision for income taxes	$	138	$	262	$	130
Income tax from OCI and additional paid-in-capital:
Net unrealized holding gain (loss) on debt and equity securities recognized for financial reporting purposes	611		681		(368)
Foreign currency translation	(9)		3		19
Unrealized pension and post retirement	(1)		(5)		—
Total income taxes provided	$	739	$	941	$	(219)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities at December 31, 2020 and 2019, are presented in the following tables (dollars in millions):

	2020		2019
Deferred income tax assets:
Nondeductible accruals	$	92	$	95
Net operating loss carryforward	254		330
Capital loss and tax credit carryforwards	—		38
Subtotal	346		463
Valuation allowance	(251)		(236)
Total deferred income tax assets	95		227
Deferred income tax liabilities:
Deferred acquisition costs	775		675
Policy reserves and other reinsurance liabilities	1,105		1,208
Invested assets	1,043		645
Outside basis difference foreign subsidiaries	354		308
Foreign currency translation	40		52
Anticipated future tax credit reduction	20		26
Other	2		1
Total deferred income tax liabilities	3,339		2,915
Net deferred income tax liabilities	$	3,244	$	2,688
Balance sheet presentation of net deferred income tax liabilities:
Included in other assets	$	19	$	24
Included in deferred income taxes	3,263		2,712
Net deferred income tax liabilities	$	3,244	$	2,688

Summary of Operating Loss Carryforwards [Table Text Block]

The following table presents consolidated net operating losses (“NOL”) as of December 31, 2020 (dollars in millions):

	2020
NOL with no expiration and with no valuation allowance	$	103
NOL with a full valuation allowance	131
NOL with no expiration and a partial valuation allowance	646
NOL with expiration dates between 2033 & 2040 with no valuation allowance	20
Total net operating loss carryforwards	$	900

Summary of Income Tax Contingencies [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018, is as follows (dollars in millions):

	Total Unrecognized Tax Benefits
	2020		2019		2018
Beginning balance, January 1	$	333	$	325	$	321
Acquisition accounting	—		—		1
Additions for tax positions of prior years	281		264		256
Reductions for tax positions of prior years	(278)		(262)		(257)
Additions for tax positions of current year	6		6		4
Settlements with tax authorities	—		—		—
Ending balance, December 31	$	342	$	333	$	325