Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense were:

Year Ended December 31 (Dollars in Millions)	2014			2013			2012
Federal
Current	$	1,888		$	1,885		$	1,853
Deferred		(126	)		(83	)		45
Federal income tax		1,762			1,802			1,898
State
Current		331			216			334
Deferred		(6	)		14			4
State income tax		325			230			338
Total income tax provision	$	2,087		$	2,032		$	2,236

Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 35 Percent to Company's Applicable Income Tax Expense

A reconciliation of expected income tax expense at the federal statutory rate of 35 percent to the Company’s applicable income tax expense follows:

Year Ended December 31 (Dollars in Millions)	2014			2013			2012
Tax at statutory rate	$	2,798		$	2,717		$	2,704
State income tax, at statutory rates, net of federal tax benefit		211			150			220
Tax effect of
Tax credits and benefits, net of related expenses		(701	)		(648	)		(479	)
Tax-exempt income		(205	)		(212	)		(219	)
Noncontrolling interests		(20	)		37			55
Other items		4			(12	)		(45	)
Applicable income taxes	$	2,087		$	2,032		$	2,236

Reconciliation of Changes in Federal, State and Foreign Unrecognized Tax Position Balances

A reconciliation of the changes in the federal, state and foreign unrecognized tax position balances are summarized as follows:

Year Ended December 31 (Dollars in Millions)	2014			2013			2012
Balance at beginning of period	$	264		$	302		$	479
Additions for tax positions taken in prior years		31			44			73
Additions for tax positions taken in the current year		4			–			5
Exam resolutions		(22	)		(56	)		(245	)
Statute expirations		(10	)		(26	)		(10	)
Balance at end of period	$	267		$	264		$	302

Significant Components of the Company's Net Deferred Tax Asset (Liability)

The significant components of the Company’s net deferred tax asset (liability) follows:

At December 31 (Dollars in Millions)	2014			2013
Deferred Tax Assets
Allowance for credit losses	$	1,652		$	1,722
Accrued expenses		630			485
Pension and postretirement benefits		437			277
Federal, state and foreign net operating loss carryforwards		212			72
Stock compensation		143			165
Securities available-for-sale and financial instruments		–			172
Partnerships and other investment assets		403			646
Other deferred tax assets, net		208			179
Gross deferred tax assets		3,685			3,718
Deferred Tax Liabilities
Leasing activities		(3,042	)		(2,872	)
Mortgage servicing rights		(871	)		(835	)
Goodwill and other intangible assets		(772	)		(666	)
Loans		(212	)		(211	)
Securities available-for-sale and financial instruments		(165	)		–
Fixed assets		(90	)		(147	)
Other deferred tax liabilities, net		(159	)		(210	)
Gross deferred tax liabilities		(5,311	)		(4,941	)
Valuation allowance		(101	)		(82	)
Net Deferred Tax Asset (Liability)	$	(1,727	)	$	(1,305	)