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Income taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Schedule Of Components Of Income Tax Expense Benefit |
(In thousands) |  | 2020 |  | 2019 |  | 2018
Current income tax (benefit) expense: |  |  |  |  |  |
Puerto Rico | $ | 33,281 | $ | 2,251 | $ | 126,700
Federal and States |  | 3,613 |  | 3,598 |  | 6,841
Subtotal |  | 36,894 |  | 5,849 |  | 133,541
Deferred income tax expense (benefit): |  |  |  |  |  |
Puerto Rico |  | 69,300 |  | 123,337 |  | (62,601)
Federal and States |  | 5,744 |  | 17,995 |  | 20,953
Adjustment for enacted changes in income tax laws |  | - |  | - |  | 27,686
Subtotal |  | 75,044 |  | 141,332 |  | (13,962)
Total income tax expense | $ | 111,938 | $ | 147,181 | $ | 119,579
Components of Deferred Tax Assets and Liabilities |
|  |  | December 31, 2020
(In thousands) |  | PR |  | US |  | Total
Deferred tax assets: |  |  |  |  |  |
Tax credits available for carryforward | $ | 3,003 | $ | 5,269 | $ | 8,272
Net operating loss and other carryforward available |  | 124,355 |  | 698,842 |  | 823,197
Postretirement and pension benefits |  | 80,179 |  | - |  | 80,179
Deferred loan origination fees |  | 12,079 |  | (2,652) |  | 9,427
Allowance for credit losses |  | 373,010 |  | 38,606 |  | 411,616
Accelerated depreciation |  | 3,439 |  | 5,390 |  | 8,829
FDIC-assisted transaction |  | 152,665 |  | - |  | 152,665
Intercompany deferred gains |  | 1,728 |  | - |  | 1,728
Lease liability |  | 22,790 |  | 18,850 |  | 41,640
Difference in outside basis from pass-through entities |  | 61,222 |  | - |  | 61,222
Other temporary differences |  | 38,954 |  | 7,344 |  | 46,298
| Total gross deferred tax assets |  | 873,424 |  | 771,649 |  | 1,645,073
Deferred tax liabilities: |  |  |  |  |  |
Indefinite-lived intangibles |  | 73,305 |  | 37,745 |  | 111,050
Unrealized net gain (loss) on trading and available-for-sale securities |  | 67,003 |  | 8,595 |  | 75,598
Right of use assets |  | 20,708 |  | 15,510 |  | 36,218
Other temporary differences |  | 50,247 |  | 1,169 |  | 51,416
| Total gross deferred tax liabilities |  | 211,263 |  | 63,019 |  | 274,282
Valuation allowance |  | 112,871 |  | 407,225 |  | 520,096
Net deferred tax asset | $ | 549,290 | $ | 301,405 | $ | 850,695
|  |  | December 31, 2019
(In thousands) |  | PR |  | US |  | Total
Deferred tax assets: |  |  |  |  |  |
Tax credits available for carryforward | $ | 2,368 | $ | 5,269 | $ | 7,637
Net operating loss and other carryforward available |  | 112,803 |  | 716,796 |  | 829,599
Postretirement and pension benefits |  | 82,623 |  | - |  | 82,623
Deferred loan origination fees |  | 2,519 |  | (2,759) |  | (240)
Allowance for loan losses |  | 405,475 |  | 10,981 |  | 416,456
Accelerated depreciation |  | 3,439 |  | 4,914 |  | 8,353
FDIC-assisted transaction[1] |  | 152,665 |  | - |  | 152,665
Intercompany deferred gains |  | 1,604 |  | - |  | 1,604
Lease liability |  | 22,694 |  | 23,387 |  | 46,081
Difference in outside basis from pass-through entities |  | 21,670 |  | - |  | 21,670
Other temporary differences |  | 26,554 |  | 7,460 |  | 34,014
| Total gross deferred tax assets |  | 834,414 |  | 766,048 |  | 1,600,462
Deferred tax liabilities: |  |  |  |  |  |
Indefinite-lived intangibles |  | 69,976 |  | 36,058 |  | 106,034
Unrealized net gain (loss) on trading and available-for-sale securities |  | 15,635 |  | 432 |  | 16,067
Right of use assets |  | 20,598 |  | 21,430 |  | 42,028
Other temporary differences |  | 50,194 |  | 1,179 |  | 51,373
| Total gross deferred tax liabilities |  | 156,403 |  | 59,099 |  | 215,502
Valuation allowance |  | 100,175 |  | 399,800 |  | 499,975
Net deferred tax asset | $ | 577,836 | $ | 307,149 | $ | 884,985
[1] | For the year ended December 31, 2019, the amounts included within the indefinite-lived intangibles and other liabilities include $32.6 million and $37.4 million, respectively which were previously included within the FDIC- assisted transaction line for the Puerto Rico operations. The Corporation determined to separately present these lines to better reflect the nature of the assets and liabilities within the respective lines, after the termination of the FDIC loss sharing agreement.
Summary Of Operating Loss Carryforwards |
(In thousands) |  |
2021 | $ | 16
2022 |  | 396
2023 |  | 1,362
2024 |  | 9,181
2025 |  | 13,516
2026 |  | 13,402
2027 |  | 16,430
2028 |  | 311,838
2029 |  | 111,343
2030 |  | 115,550
2031 |  | 96,273
2032 |  | 16,951
2033 |  | 2,990
2034 |  | 84,923
| $ | 794,171
Reconciliation of Unrecognized Tax Benefits |
(In millions) |  |
Balance at January 1, 2019 | $ | 7.2
Additions for tax positions taken in prior years[1] |  | 9.1
Balance at December 31, 2019 | $ | 16.3
Reduction as a result of lapse of statute of limitations |  | (1.5)
Balance at December 31, 2020 | $ | 14.8
[1] | The Corporation recorded a deferred tax asset of $8.7 million associated with the unrecognized tax benefit since the uncertainty of the tax position is related to the timing of the tax benefit.
PUERTO RICO |
Differences Between Income Tax Expense (Benefit) Applicable to Income Before Income Taxes and Amount Computed by Applying the Statutory Tax Rate in Puerto Rico |
|  |  | 2020 |  |  | 2019 |  |  | 2018 |
(In thousands) |  | Amount | % of pre-tax income |  |  | Amount | % of pre-tax income |  |  | Amount | % of pre-tax income |
Computed income tax at statutory rates | $ | 231,960 | 38 | % | $ | 306,869 | 38 | % | $ | 287,717 | 39 | %
Benefit of net tax exempt interest income |  | (126,232) | (20) |  |  | (145,597) | (18) |  |  | (97,199) | (13) |
Effect of income subject to preferential tax rate[1] |  | (10,141) | (2) |  |  | (9,562) | (1) |  |  | (111,738) | (15) |
Deferred tax asset valuation allowance |  | 15,276 | 2 |  |  | 16,992 | 2 |  |  | 27,336 | 4 |
Difference in tax rates due to multiple jurisdictions |  | (1,903) | - |  |  | (12,888) | (2) |  |  | (16,324) | (3) |
Adjustment in net deferred tax due to change in the applicable tax rate |  | - | - |  |  | (6,559) | (1) |  |  | 27,686 | 4 |
Unrecognized tax benefits |  | (2,163) | - |  |  | - | - |  |  | (1,621) | - |
State and local taxes |  | 4,350 | - |  |  | 4,749 | 1 |  |  | 8,772 | 1 |
Others |  | 791 | - |  |  | (6,823) | (1) |  |  | (5,050) | (1) |
Income tax expense | $ | 111,938 | 18 | % | $ | 147,181 | 18 | % | $ | 119,579 | 16 | %
[1] For the year ended December 31,2018, includes the impact of the Tax Closing Agreement entered into in connection with the Westernbank FDIC-assisted Transaction.

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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 -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
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: 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 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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