The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported for continuing operations was as follows: Notes to the Consolidated Financial Statements — (Continued) MetLife, Inc. Deferred income tax represents the tax effect of the differences between the book and tax basis of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at: The following table sets forth the domestic, state, and foreign net operating and capital loss carryforwards for tax purposes at December 31, 2012. Tax credit carryforwards of $545 million at December 31, 2012 will expire beginning in 2017. For U.S. federal income tax purposes, the Company made an election under Section 338 of the Code (the “Section 338 Election”) relating to the acquisition of American Life. Pursuant to such election, the historical tax basis in the acquired assets and liabilities was adjusted to the fair market value as of the ALICO Acquisition Date resulting in a change to the related deferred income taxes. 193 MetLife, Inc. Net Operating Loss Carryforwards Capital Loss Carryforwards Amount Expiration Amount Expiration (In millions) (In millions) Domestic ............................................... $3,249 Beginning in 2018 $405 Beginning in 2014 State .................................................. $ 453 Beginning in 2013 $ — N/A Foreign ................................................ $1,438 Beginning in 2013 $ 52 Beginning in 2014 December 31, 2012 2011 (In millions) Deferred income tax assets: Policyholder liabilities and receivables ...................................................................... $ 6,233 $ 5,939 Net operating loss carryforwards .......................................................................... 1,408 1,595 Employee benefits ..................................................................................... 1,234 916 Capital loss carryforwards ............................................................................... 160 449 Tax credit carryforwards ................................................................................ 545 1,692 Litigation-related and government mandated ................................................................ 197 207 Other ............................................................................................... 484 483 Total gross deferred income tax assets .................................................................. 10,261 11,281 Less: Valuation allowance ............................................................................... 368 1,083 Total net deferred income tax assets .................................................................... 9,893 10,198 Deferred income tax liabilities: Investments, including derivatives ......................................................................... 3,149 3,371 Intangibles ........................................................................................... 2,668 5,309 Net unrealized investment gains .......................................................................... 7,854 4,453 DAC ............................................................................................... 4,775 3,268 Other ............................................................................................... 140 192 Total deferred income tax liabilities ...................................................................... 18,586 16,593 Net deferred income tax asset (liability) ................................................................... $(8,693) $ (6,395) Years Ended December 31, 2012 2011 2010 (In millions) Tax provision at U.S. statutory rate ..................................................................... $505 $3,215 $1,306 Tax effect of: Tax-exempt investment income ..................................................................... (256) (246) (242) State and local income tax ......................................................................... (3) (4) 9 Prior year tax .................................................................................... 23 (4) 59 Tax credits ...................................................................................... (178) (138) (82) Foreign tax rate differential .......................................................................... (45) (41) 37 Goodwill impairment .............................................................................. 408 — — Deferred tax benefit of converting Japan branch to subsidiary .............................................. (324) — — Change in valuation allowance ...................................................................... 15 16 7 Other, net ...................................................................................... (17) (5) 16 Provision for income tax expense (benefit) ........................................................... $128 $2,793 $1,110