Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Applicable Income Taxes Included in the Consolidated Statements Of Income

The Bancorp and its subsidiaries file a consolidated federal income tax return. The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31:


($ in millions)		2015	2014	2013
Current income tax expense:
U.S. Federal income taxes	$	662	424	494
State and local income taxes		55	34	23
Foreign income taxes		13	8	2
Total current income tax expense		730	466	519
Deferred income tax (benefit) expense:
U.S. Federal income taxes		(78)	71	232
State and local income taxes		6	9	23
Foreign income taxes		1	(1)	(2)
Total deferred income tax (benefit) expense		(71)	79	253
Applicable income tax expense	$	659	545	772

Reconciliation Between the Statutory U.S. Income Tax Rate and the Bancorp's Effective Tax Rate

The following is a reconciliation between the statutory U.S. Federal income tax rate and the Bancorp’s effective tax rate for the years ended December 31:

	2015		2014	2013
Statutory tax rate	35.0	%	35.0	35.0
Increase (decrease) resulting from:
State taxes, net of federal benefit	1.7		1.4	1.2
Tax-exempt income	(1.7)		(1.4)	(1.1)
Credits	(7.5)		(8.1)	(6.0)
Unrealized stock-based compensation benefits	0.0		0.0	0.3
Other, net	0.3		0.0	0.3
Effective tax rate	27.8	%	26.9	29.7

Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits

The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits:

($ in millions)		2015	2014	2013
Unrecognized tax benefits at January 1	$	11	7	18
Gross increases for tax positions taken during prior period		1	2	1
Gross decreases for tax positions taken during prior period		-	-	(7)
Gross increases for tax positions taken during current period		2	2	1
Settlements with taxing authorities		-	-	(5)
Lapse of applicable statute of limitations		(1)	-	(1)
Unrecognized tax benefits at December 31^(a)	$	13	11	7

Amounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rate.

Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets


Deferred income taxes are comprised of the following items at December 31:

($ in millions)		2015	2014
Deferred tax assets:
Allowance for loan and lease losses	$	445	463
Deferred compensation		118	113
Reserves		61	96
Reserve for unfunded commitments		48	47
State net operating loss carryforwards		10	18
Other		194	189
Total deferred tax assets	$	876	926
Deferred tax liabilities:
Lease financing	$	935	896
Investments in joint ventures and partnership interests		248	329
MSRs and related economic hedges		245	237
Other comprehensive income		106	231
State deferred taxes		79	81
Qualifying hedges and free-standing derivatives		58	105
Bank premises and equipment		53	103
Other		160	148
Total deferred tax liabilities	$	1,884	2,130
Total net deferred tax liability	$	(1,008)	(1,204)