Income taxes |
6 Months Ended |
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Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes BNY Mellon recorded an income tax provision of $332 million (25.4% effective tax rate) in the second quarter of 2017. The income tax provision was $290 million (24.9% effective tax rate) in the second quarter of 2016 and $269 million (22.3% effective tax rate) in the first quarter of 2017. The effective tax rate for the first quarter of 2017 reflects an approximate 3% benefit primarily driven by applying the new accounting guidance included in ASU 2016-09, Compensation – Stock Compensation, to the annual vesting of stock awards and our stock price appreciating above the awards’ original grant price. Our total tax reserves as of June 30, 2017 were $143 million compared with $150 million at March 31, 2017. If these tax reserves were unnecessary, $143 million would affect the effective tax rate in future periods. We recognize accrued interest and penalties, if applicable, related to income taxes in income tax expense. Included in the balance sheet at June 30, 2017 is accrued interest, where applicable, of $21 million. The additional tax expense related to interest for the six months ended June 30, 2017 was $4 million, compared with $4 million for the six months ended June 30, 2016. It is reasonably possible the total reserve for uncertain tax positions could decrease within the next 12 months by approximately $13 million as a result of adjustments related to tax years that are still subject to examination. Our federal income tax returns are closed to examination through 2013. Our New York State, New York City and UK income tax returns are closed to examination through 2012. |