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Income Taxes And Tax-Related Items Income Taxes And Tax-Related Items (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Current and Deferred Components of the Provision for Income Taxes | The current and deferred components of the provision for income taxes were as follows:
(in millions) |  |  |  |  |
December 31 | 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 212 |  |  | $ | 171 |  |  | $ | 267 |
Foreign | 5 |  |  | 5 |  |  | 7 |
State and local | 26 |  |  | 30 |  |  | 48 |
Total current | 243 |  |  | 206 |  |  | 322 |
Deferred: |  |  |  |  |
Federal | 62 |  |  | (73) |  |  | 17 |
State and local | 17 |  |  | (9) |  |  | (3) |
Total deferred | 79 |  |  | (82) |  |  | 14 |
Total | $ | 322 |  |  | $ | 124 |  |  | $ | 336 |
Reconciliation of Expected Income Tax Expense at the Federal Statutory Rate to the Provision for Income Taxes | A reconciliation of expected income tax expense at the federal statutory rate to the Corporation’s provision for income taxes and effective tax rate follows:
(dollar amounts in millions) | 2021 |  | 2020 |  | 2019
Years Ended December 31 | Amount |  | Rate |  | Amount |  | Rate |  | Amount |  | Rate
Tax based on federal statutory rate | $ | 313 |  |  | 21.0 | % |  | $ | 130 |  |  | 21.0 | % |  | $ | 323 |  |  | 21.0 | %
State income taxes | 35 |  |  | 2.4 |  |  | 18 |  |  | 2.9 |  |  | 34 |  |  | 2.2 |
Affordable housing and historic credits | (13) |  |  | (0.9) |  |  | (12) |  |  | (1.9) |  |  | (11) |  |  | (0.7) |
Bank-owned life insurance | (10) |  |  | (0.6) |  |  | (10) |  |  | (1.6) |  |  | (9) |  |  | (0.6) |
FDIC insurance expense | 5 |  |  | 0.3 |  |  | 7 |  |  | 1.1 |  |  | 5 |  |  | 0.3 |
Employee stock transactions | (3) |  |  | (0.2) |  |  | (1) |  |  | (0.2) |  |  | (12) |  |  | (0.8) |
Tax-related interest and penalties | — |  |  | — |  |  | (2) |  |  | (0.3) |  |  | 2 |  |  | 0.1 |
Other | (5) |  |  | (0.4) |  |  | (6) |  |  | (1.0) |  |  | 4 |  |  | 0.3 |
Provision for income taxes | $ | 322 |  |  | 21.6 | % |  | $ | 124 |  |  | 20.0 | % |  | $ | 336 |  |  | 21.8 | %
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of net unrecognized tax benefits follows:
(in millions) | 2021 |  | 2020 |  | 2019
Balance at January 1 | $ | 19 |  |  | $ | 17 |  |  | $ | 14 |
Increase as a result of tax positions taken during a prior period | 1 |  |  | 1 |  |  | 4 |
Increase as a result of tax positions taken during the current period | 3 |  |  | 2 |  |  | — |
Decreases related to settlements with tax authorities | (3) |  |  | (1) |  |  | (1) |
Reduction as a result of expiration of statute of limitations | (2) |  |  | — |  |  | — |
Balance at December 31 | $ | 18 |  |  | $ | 19 |  |  | $ | 17 |
Tax Years Remaining Open for Examination for Significant Tax Jurisdictions | The following tax years for significant jurisdictions remain subject to examination as of December 31, 2021:
Jurisdiction | Tax Years
Federal | 2017-2020
California | 2006-2007, 2018-2020
Principal Components of Deferred Tax Assets and Liabilities | The principal components of deferred tax assets and liabilities were as follows:
(in millions) |  |  |
December 31 | 2021 |  | 2020
Deferred tax assets: |  |  |
Allowance for depreciation | $ | 7 |  |  | $ | — |
Allowance for loan losses | 124 |  |  | 199 |
Deferred compensation | 71 |  |  | 59 |
Deferred loan origination fees and costs | 17 |  |  | 19 |
Net unrealized losses on investment securities available-for-sale | 30 |  |  | — |
Operating lease liabilities | 74 |  |  | 72 |
Other temporary differences, net | 21 |  |  | 51 |
Total deferred tax assets before valuation allowance | 344 |  |  | 400 |
Valuation allowance | (5) |  |  | (3) |
Total deferred tax assets | 339 |  |  | 397 |
Deferred tax liabilities: |  |  |
Lease financing transactions | (49) |  |  | (70) |
Defined benefit plans | (198) |  |  | (137) |
Allowance for depreciation | — |  |  | (11) |
Net hedging gains | (17) |  |  | (47) |
Leasing Right of Use assets | (66) |  |  | (64) |
Net unrealized gains on investment securities available-for-sale | — |  |  | (65) |
Total deferred tax liabilities | (330) |  |  | (394) |
Net deferred tax assets | $ | 9 |  |  | $ | 3 |

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- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + 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 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -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 + Details
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