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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of 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, Dollars in millions | 2023 | 2022 | 2021
Currently payable: |  |  |
Federal | $ | 257 |  | $ | 368 |  | $ | 423 |
State | 48 |  | 80 |  | 73 |
Total currently payable | $ | 305 |  | $ | 448 |  | $ | 496 |
Deferred: |  |  |
Federal | $ | (84) |  | $ | (14) |  | $ | 119 |
State | (25) |  | (12) |  | 27 |
Total deferred | (109) |  | (26) |  | 146 |
Total income tax (benefit) expense (a) | $ | 196 |  | $ | 422 |  | $ | 642 |
(a)There was income tax (benefit) expense on securities transactions of $(3) million in 2023, $2 million in 2022, and $(2) million in 2021. 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 $34 million in 2023, $33 million in 2022, and $33 million in 2021.
Schedule of Significant Components of Deferred Tax Assets and Liabilities Included in "Accrued Income and Other Assets" and "Accrued Expense and Other Assets" | Significant components of our deferred tax assets and liabilities included in “accrued income and other assets” on our Consolidated Balance Sheets, are as follows:
December 31, Dollars in millions | 2023 | 2022
Allowance for loan and lease losses | $ | 422 |  | $ | 380 |
Employee benefits | 166 |  | 187 |
Net unrealized securities losses | 1,612 |  | 1,959 |
Federal net operating losses and credits | 3 |  | 4 |
Non-tax accruals | 142 |  | 61 |
Operating lease liabilities(a) | 136 |  | 149 |
State net operating losses and credits | 1 |  | 1 |
Partnership investments | 78 |  | 90 |
Other | 148 |  | 164 |
Gross deferred tax assets | 2,708 |  | 2,995 |
Less: Valuation Allowance | 12 |  | 11 |
Total deferred tax assets | $ | 2,696 |  | $ | 2,984 |
Leasing transactions | $ | 446 |  | $ | 521 |
State taxes | 77 |  | 86 |
Operating lease right-of-use assets (a) | 119 |  | 130 |
Goodwill | 157 |  | 139 |
Other | 82 |  | 86 |
Total deferred tax liabilities | 881 |  | 962 |
Net deferred tax assets (liabilities) (b) | $ | 1,815 |  | $ | 2,022 |
(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.
Schedule of 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 | 2023 |  | 2022 |  | 2021
Amount | Rate |  | Amount | Rate |  | Amount | Rate
Income (loss) before income taxes times 21% statutory federal tax rate | $ | 244 |  | 21.0 | % |  | $ | 490 |  | 21.0 | % |  | $ | 683 |  | 21.0 | %
Amortization of tax-advantaged investments | 171 |  | 14.8 |  |  | 149 |  | 6.4 |  |  | 151 |  | 4.6 |
Tax-exempt interest income | (35) |  | (3.1) |  |  | (28) |  | (1.2) |  |  | (26) |  | (.8) |
Corporate-owned life insurance income | (28) |  | (2.4) |  |  | (28) |  | (1.2) |  |  | (27) |  | (.8) |
State income tax, net of federal tax benefit | 18 |  | 1.6 |  |  | 53 |  | 2.3 |  |  | 79 |  | 2.4 |
Tax credits | (196) |  | (16.9) |  |  | (204) |  | (8.8) |  |  | (218) |  | (6.7) |
FDIC Insurance | 22 |  | 1.9 |  |  | 12 |  | .5 |  |  | 7 |  | .3 |
Other | — |  | — |  |  | (22) |  | (.9) |  |  | (7) |  | (.3) |
Total income tax expense (benefit) | $ | 196 |  | 16.9 | % |  | $ | 422 |  | 18.1 | % |  | $ | 642 |  | 19.7 | %
Schedule of Change in Liability for Unrecognized Tax Benefits | The change in our liability for unrecognized tax benefits is as follows:
Year ended December 31, Dollars in millions | 2023 | 2022
Balance at beginning of year | $ | 40 |  | $ | 50 |
Increase for other tax positions of prior years | 5 |  | 4 |
Decrease for payments and settlements | — |  | — |
Decrease related to tax positions taken in prior years | — |  | (14) |
Balance at end of year | $ | 45 |  | $ | 40 |

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- 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 -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
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- 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 -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
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- 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 -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 12 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-12 + Details
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- 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 -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 + Details
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