Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

The provision (benefit) for income taxes is presented in the following table:


	Years ended December 31,
(In millions)	2023		2022		2021
Current:
Federal income tax1	$	809	$	402	$	83
Foreign income tax2	104		54		33
State and local income tax	64		59		3
	$	977	$	515	$	119
Deferred:
Federal income tax	331		(1,209)		423
Foreign income tax2	(2,239)		6		(1)
State and local income tax	8		(51)		53
	(1,900)		(1,254)		475
Total Income Tax Provision (Benefit)	$	(923)	$	(739)	$	594

1 The federal income tax provision (benefit) for the year ended December 31, 2023 includes $49 million of proportional amortization, $(186) million of general tax credits and $103 million of transaction costs relating to low-income housing and transferable energy tax credits.
2 The foreign income tax provision (benefit) was calculated on $2,600 million, $(3,359) million and $212 million of pre-tax income (loss) generated in foreign jurisdictions for the years ended December 31, 2023, 2022 and 2021, respectively.

The income tax provision (benefit) is presented in the following table:


	Years ended December 31,
(In millions)	2023		2022		2021
Income tax provision (benefit)	$	(923)	$	(739)	$	594
Income tax provision (benefit) from other comprehensive income (loss)	513		(1,933)		—
Total income tax provision (benefit)	$	(410)	$	(2,672)	$	594

The following table reconciles the U.S. Federal statutory tax rate to the effective income tax rate:


	Years ended December 31,
(In millions, except percentages)	2023		2022		2021
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%
Income passed through to non-controlling interests	(4.6)		(9.0)		(10.4)
State and local income taxes (net of federal benefit)	1.2		(0.1)		0.8
Impact of Mergers	—		7.3		—

Impact of foreign taxes (net of foreign tax credit)	(31.0)		—		0.3
Impact of equity-based compensation	1.0		0.1		0.5
Impact of valuation allowance	(1.3)		—		—
Tax Credits	(0.6)		—		—
Redomicile	(1.2)		—		—
Other	(1.0)		(1.9)		—
Effective income tax rate	(16.5)	%	17.4	%	12.2	%

The Company’s deferred tax assets and liabilities in the consolidated statements of financial condition consist of the following:


	December 31,
(In millions)	2023		2022
Asset Management
Deferred Tax Assets:
Depreciation and amortization	$	395	$	417
Tax Credits	68		—
Deferred revenue	11		8
Equity-based compensation	170		122

Other	74		55
Total Deferred Tax Assets	718		602
Valuation Allowance	(8)		—
Deferred Tax Assets, Net of Valuation Allowance	710		602


	December 31,
(In millions)	2023		2022
Deferred Tax Liabilities:
Basis difference in investments	163		70
Other	8		7
Total Deferred Tax Liabilities	171		77
Total Deferred Tax Assets, Net - Asset Management	$	539	$	525
Retirement Services
Deferred Tax Assets:
Insurance liabilities	$	1,742	$	1,015

Net operating and capital loss carryforwards	284		185
Investments, including derivatives	1,904		3,365
Employee benefits	8		8
Bermuda tax	1,764		—
Investment in foreign subsidiaries	1,176		1,046
Other	280		—
Total Deferred Tax Assets	7,158		5,619
Valuation allowance	(25)		(105)
Deferred Tax Assets, Net of Valuation Allowance	7,133		5,514
Deferred Tax Liabilities:
Intangible assets	386		379


DAC, DSI and VOBA	954		713
Other	49		29
Total Deferred Tax Liabilities	1,389		1,121
Total Deferred Tax Assets, Net - Retirement Services	$	5,744	$	4,393

The valuation allowance consists of the following:


	December 31,
(In millions)	2023		2022
U.S. federal and state net operating losses and other deferred tax assets	$	8	$	16
U.K. net operating losses and other deferred tax assets	25		89
Total Valuation Allowance	$	33	$	105

The following table presents a roll-forward of the beginning and ending aggregate unrecognized tax benefits for the periods presented:


	Years ended December 31,
(In millions)	2023		2022		2021
Balance at beginning of period	$	15	$	—	$	—

Increases based on tax positions taken in the prior years	4		15		—



Balance at end of period	$	19	$	15	$	—