XML 62 R45.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of Significant Components of Provision for Income Taxes Attributable to Continuing Operations | The following table presents significant components of the provision for income taxes attributable to continuing operations for the years ended December 31, 2021, 2020 and 2019. Table 15.1: Significant Components of the Provision for Income Taxes Attributable to Continuing Operations
|  | Year Ended December 31,
(Dollars in millions) |  | 2021 |  | 2020 |  | 2019
Current income tax provision: |  |  |  |  |  |
Federal taxes |  | $ | 2,173 |  |  | $ | 1,676 |  |  | $ | 1,207 |
State taxes |  | 485 |  |  | 370 |  |  | 301 |
International taxes |  | 152 |  |  | 67 |  |  | 129 |
Total current provision |  | $ | 2,810 |  |  | $ | 2,113 |  |  | $ | 1,637 |
Deferred income tax provision (benefit): |  |  |  |  |  |
Federal taxes |  | $ | 490 |  |  | $ | (1,357) |  |  | $ | (222) |
State taxes |  | 91 |  |  | (266) |  |  | (45) |
International taxes |  | 24 |  |  | (4) |  |  | (29) |
Total deferred provision (benefit) |  | 605 |  |  | (1,627) |  |  | (296) |
Total income tax provision |  | $ | 3,415 |  |  | $ | 486 |  |  | $ | 1,341 |
Schedule of Effective Income Tax Rate | The following table presents the reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate applicable to income from continuing operations for the years ended December 31, 2021, 2020 and 2019. Table 15.2: Effective Income Tax Rate
|  | Year Ended December 31,
|  | 2021 |  | 2020 |  | 2019
Income tax at U.S. federal statutory tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes, net of federal benefit |  | 3.1 |  |  | 3.5 |  |  | 3.1 |
Non-deductible expenses |  | 0.4 |  |  | 3.2 |  |  | 1.6 |
Affordable housing, new markets and other tax credits |  | (2.3) |  |  | (11.4) |  |  | (5.2) |
Tax-exempt interest and other nontaxable income |  | (0.3) |  |  | (1.7) |  |  | (0.8) |
Changes in valuation allowance |  | 0.4 |  |  | 2.3 |  |  | (0.3) |
Other, net |  | (0.7) |  |  | (1.7) |  |  | 0.1 |
Effective income tax rate |  | 21.6 | % |  | 15.2 | % |  | 19.5 | %
Schedule of Significant Components of Deferred Tax Assets and Liabilities | The following table presents significant components of our deferred tax assets and liabilities as of December 31, 2021 and 2020. The valuation allowance below represents the adjustment of our foreign tax credit carryforward, certain state deferred tax assets and net operating loss carryforwards to the amount we have determined is more likely than not to be realized. Table 15.3: Significant Components of Deferred Tax Assets and Liabilities
(Dollars in millions) |  | December 31, 2021 |  | December 31, 2020
Deferred tax assets: |  |  |  |
Allowance for credit losses |  | $ | 2,657 |  |  | $ | 3,649 |
Rewards programs |  | 825 |  |  | 711 |
Net operating loss and tax credit carryforwards |  | 367 |  |  | 314 |
Lease liabilities |  | 345 |  |  | 396 |
Compensation and employee benefits |  | 337 |  |  | 306 |
Partnership investments |  | 238 |  |  | 237 |
Other assets |  | 359 |  |  | 418 |
Subtotal |  | 5,128 |  |  | 6,031 |
Valuation allowance |  | (355) |  |  | (296) |
Total deferred tax assets |  | 4,773 |  |  | 5,735 |
Deferred tax liabilities: |  |  |  |
Original issue discount |  | 361 |  |  | 481 |
Right-of-use assets |  | 284 |  |  | 342 |
Partnership investments |  | 128 |  |  | 142 |
Mortgage servicing rights |  | 88 |  |  | 73 |
Security and loan valuations(1) |  | 49 |  |  | 805 |
Net unrealized gains on derivatives |  | 32 |  |  | 387 |
Other liabilities |  | 123 |  |  | 179 |
Total deferred tax liabilities |  | 1,065 |  |  | 2,409 |
Net deferred tax assets |  | $ | 3,708 |  |  | $ | 3,326 |
_________ (1)Amount includes the tax impact of our December 31, 2019 transfer of our entire portfolio of held to maturity securities to available for sale.
Schedule of Reconciliation of Change in Unrecognized Tax Benefits | The following table presents the accrued balance of tax, interest and penalties related to unrecognized tax benefits. Table 15.4: Reconciliation of the Change in Unrecognized Tax Benefits
(Dollars in millions) |  | Gross Unrecognized Tax Benefits |  | Accrued Interest and Penalties |  | Gross Tax, Interest and Penalties
Balance as of January 1, 2019 |  | $ | 440 |  |  | $ | 35 |  |  | $ | 475 |
Additions for tax positions related to the current year |  | 23 |  |  | 17 |  |  | 40 |
Additions for tax positions related to prior years |  | 12 |  |  | 4 |  |  | 16 |
Reductions for tax positions related to prior years due to IRS and other settlements |  | (44) |  |  | (25) |  |  | (69) |
Balance as of December 31, 2019 |  | 431 |  |  | 31 |  |  | 462 |
Additions for tax positions related to the current year |  | 33 |  |  | — |  |  | 33 |
Additions for tax positions related to prior years |  | 3 |  |  | 21 |  |  | 24 |
Reductions for tax positions related to prior years due to IRS and other settlements |  | (16) |  |  | (6) |  |  | (22) |
Balance as of December 31, 2020 |  | 451 |  |  | 46 |  |  | 497 |
Additions for tax positions related to prior years |  | 1 |  |  | 4 |  |  | 5 |
Reductions for tax positions related to prior years due to IRS and other settlements |  | (47) |  |  | (36) |  |  | (83) |
Balance as of December 31, 2021 |  | $ | 405 |  |  | $ | 14 |  |  | $ | 419 |
Portion of balance at December 31, 2021 that, if recognized, would impact the effective income tax rate |  | $ | 143 |  |  | $ | 10 |  |  | $ | 153 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=124434304&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration