Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2014

Taxes on Income [Abstract]

Income Tax Expense

Year Ended December 31,		2014		2013		2012
Current:
Federal	$	747	$	598	$	489
State		72		57		28
Total current		819		655		517
Deferred:
Federal		(23)		(20)		5
State		(2)		(1)		-
Total deferred		(25)		(21)		5
Taxes on income	$	794	$	634	$	522

Temporary Differences That Created Deferred Tax Assets and Liabilities

December 31,		2014		2013
Deferred tax assets:
Employee compensation, severance, and benefits	$	213	$	190
Facilities lease commitments		30		33
Reserves and allowances		25		30
State and local taxes		12		12
Net operating loss carryforwards		6		6
Total deferred tax assets		286		271
Valuation allowance		(4)		(4)
Deferred tax assets – net of valuation allowance		282		267
Deferred tax liabilities:
Depreciation and amortization		(125)		(142)
Net unrealized gain on securities available for sale		(98)		(5)
Capitalized internal-use software development costs		(76)		(62)
Deferred cancellation of debt income		(9)		(11)
Deferred loan costs		(7)		(10)
Deferred Senior Note exchange		(6)		(7)
Other		-		(2)
Total deferred tax liabilities		(321)		(239)
Deferred tax (liability) asset – net (1)	$	(39)	$	28

(1) Amounts are included in other assets and in accrued expenses and other liabilities at December 31, 2014 and 2013, respectively.

Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate

Year Ended December 31,	2014		2013		2012
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit (1)	2.3		2.3		1.2
Other	0.2		(0.1)		(0.2)
Effective income tax rate	37.5	%	37.2	%	36.0	%

(1) Includes the impact of a non-recurring state tax benefit of which$4 million and$20 million were recorded in 2013 and 2012, respectively.

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

December 31,		2014		2013
Balance at beginning of year	$	10	$	12
Additions for tax positions related to the current year		1		1
Additions for tax positions related to prior years		1		-
Reductions due to lapse of statute of limitations		(1)		(2)
Reductions for settlements with tax authorities		-		(1)
Balance at end of year	$	11	$	10