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the years ended December 31 were as follows:
(In millions)
2016
2015
2014
Income taxes based on U.S. statutory rates
$ 1,424
$ 1,352
$ 1,572
Utilization of foreign tax credit
(30)
(27)
(32)
Nondeductible expenses
8
3
5
Other, net
6
1
(5)
Income tax expense
$ 1,408
$ 1,329
$ 1,540
Total income tax expense for the years ended December 31 was allocated as follows:
(In millions)
2016
2015
2014
Statements of earnings
$ 1,408
$ 1,329
$1,540
Other comprehensive income (loss):
Unrealized foreign currency translation gains (losses) during period
70
16
(419)
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) on investment
securities during period
962
(931)
2,237
Reclassification adjustment for realized (gains) losses
on investment securities included in net earnings
18
21
19
Unrealized gains (losses) on derivatives during period
1
0
(3)
Pension liability adjustment during period
(16)
(7)
(31)
Total income tax expense (benefit) related to items of
other comprehensive income (loss)
1,035
(901)
1,803
Additional paid-in capital (exercise of stock options)
(10)
4
(7)
Total income taxes
$ 2,433
$ 432
$3,336
The income tax effects of the temporary differences that gave rise to deferred income tax assets and liabilities as of
December 31 were as follows:
(In millions)
2016
2015
Deferred income tax liabilities:
Deferred policy acquisition costs
$ 2,439
$ 2,282
Unrealized gains on investment securities
2,636
1,684
Premiums receivable
111
139
Policy benefit reserves
1,638
1,313
Depreciation
70
61
Other
0
0
Total deferred income tax liabilities
6,894
5,479
Deferred income tax assets:
Other basis differences in investment securities
1,167
1,422
Unfunded retirement benefits
13
15
Other accrued expenses
11
7
Policy and contract claims
146
113
Foreign currency loss on Japan branch
185
208
Deferred compensation
210
181
Capital loss carryforwards
3
0
Other
103
95
Total deferred income tax assets
1,838
2,041
Net deferred income tax liability
5,056
3,438
Current income tax liability
331
902
Total income tax liability
$ 5,387
$ 4,340
147