XML 211 R51.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes Included in Income Statement | Income taxes included in the income statement are summarized below. We file a consolidated federal income tax return.
Year ended December 31, in millions | 2019 | 2018 | 2017
Currently payable: |  |  |
Federal | $ | 241 |  | $ | 184 |  | $ | 334 |
State | 20 |  | 62 |  | — |
Total currently payable | 261 |  | 246 |  | 334 |
Deferred: |  |  |
Federal | 34 |  | 117 |  | 274 |
State | 19 |  | (19 | ) | 29 |
Total deferred | 53 |  | 98 |  | 303 |
Total income tax (benefit) expense (a) | $ | 314 |  | $ | 344 |  | $ | 637 |
(a) | There was income tax (benefit) expense on securities transactions of $5 million in 2019, and no income tax (benefit) expense on securities transactions in 2018 and 2017. Income tax expense excludes equity- and gross receipts-based taxes, which are assessed in lieu of an income tax in certain states in which we operate. These non-income taxes, which are recorded in “noninterest expense” on the income statement, totaled $23 million in 2019, $15 million in 2018, and $22 million in 2017.
Significant Components of Deferred Tax Assets and Liabilities Included in "Accrued Income and Other Assets" and "Accrued Expense and Other Liabilities" | Significant components of our deferred tax assets and liabilities included in “accrued income and other assets” and “accrued expense and other liabilities,” respectively, on the balance sheet, are as follows:
December 31, in millions | 2019 | 2018
Allowance for loan and lease losses | $ | 236 |  | $ | 232 |
Employee benefits | 164 |  | 170 |
Net unrealized securities losses | — |  | 144 |
Federal net operating losses and credits | 81 |  | 34 |
Fair value adjustments | 21 |  | 41 |
Non-tax accruals | 61 |  | 80 |
Operating lease liabilities (a) | 178 |  | — |
State net operating losses and credits | 1 |  | 3 |
Other | 245 |  | 221 |
Gross deferred tax assets | 987 |  | 925 |
Less: Valuation Allowance | — |  | 11 |
Total deferred tax assets | 987 |  | 914 |
Leasing transactions | 628 |  | 531 |
Net unrealized securities gains | 117 |  | — |
Operating lease right-of-use assets (a) | 156 |  | — |
Other | 175 |  | 161 |
Total deferred tax liabilities | 1,076 |  | 692 |
Net deferred tax assets (liabilities) (b) | $ | (89 | ) | $ | 222 |
(a) | A separate deferred tax asset and liability is recognized for each operating lease item resulting from the adoption of ASC 842 in 2019.
(b) | From continuing operations.
Total Income Tax Expense (Benefit) and Resulting Effective Tax Rate | The following table shows how our total income tax expense (benefit) and the resulting effective tax rate were derived:
Year ended December 31, dollars in millions | 2019 |  | 2018 |  | 2017
Amount | Rate |  | Amount | Rate |  | Amount | Rate
Income (loss) before income taxes times 21% (35% for 2017) statutory federal tax rate | $ | 425 |  | 21.0 | % |  | $ | 463 |  | 21.0 | % |  | $ | 675 |  | 35.0 | %
Amortization of tax-advantaged investments | 132 |  | 6.5 |  |  | 127 |  | 5.8 |  |  | 104 |  | 5.4 |
Foreign tax adjustments | — |  | — |  |  | 2 |  | .1 |  |  | 1 |  | .1 |
Tax-exempt interest income | (30 | ) | (1.5 | ) |  | (30 | ) | (1.4 | ) |  | (37 | ) | (1.9 | )
Corporate-owned life insurance income | (29 | ) | (1.4 | ) |  | (29 | ) | (1.3 | ) |  | (46 | ) | (2.4 | )
State income tax, net of federal tax benefit | 31 |  | 1.5 |  |  | 34 |  | 1.5 |  |  | 19 |  | 1.0 |
Tax credits | (231 | ) | (11.4 | ) |  | (234 | ) | (10.6 | ) |  | (218 | ) | (11.3 | )
Tax Cuts and Jobs Act | — |  | — |  |  | 7 |  | .3 |  |  | 147 |  | 7.6 |
Other | 16 |  | .9 |  |  | 4 |  | .2 |  |  | (8 | ) | (.5 | )
Total income tax expense (benefit) | $ | 314 |  | 15.6 | % |  | $ | 344 |  | 15.6 | % |  | $ | 637 |  | 33.0 | %
Change in Liability for Unrecognized Tax Benefits | The change in our liability for unrecognized tax benefits is as follows:
Year ended December 31, in millions | 2019 | 2018
Balance at beginning of year | $ | 35 |  | $ | 39 |
Increase for other tax positions of prior years | 2 |  | 15 |
Decrease for payments and settlements | — |  | — |
Decrease related to tax positions taken in prior years | (18 | ) | (19 | )
Balance at end of year | $ | 19 |  | $ | 35 |

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=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum: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=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum: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=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 + Details
Name: | us-gaap_SummaryOfPositionsForWhichSignificantChangeInUnrecognizedTaxBenefitsIsReasonablyPossibleTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration