XML 31 R19.htm IDEA: XBRL DOCUMENT v3.20.2
Income taxes
6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income taxes Income taxes

BNY Mellon recorded an income tax provision of $216 million (18.3% effective tax rate) in the second quarter of 2020, $264 million (20.5% effective tax rate) in the second quarter of 2019 and $265 million (21.6% effective tax rate) in the first quarter of 2020.

Our total tax reserves as of June 30, 2020 were $178 million compared with $173 million at Dec. 31, 2019. If these tax reserves were unnecessary, $178 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, 2020 is accrued interest, where applicable, of
$34 million. The additional tax expense related to interest for the six months ended June 30, 2020 was $3 million, compared with $6 million for the six months ended June 30, 2019.

It is reasonably possible the total reserve for uncertain tax positions could decrease within the next 12 months by approximately $100 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 2016. Our New York State, New York City and UK income tax returns are closed to examination through 2012.