Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense were:

Year Ended December 31 (Dollars in Millions)	2016			2015			2014
Federal
Current	$	2,585		$	1,956		$	1,888
Deferred		(711	)		(223	)		(126	)
Federal income tax		1,874			1,733			1,762
State
Current		337			346			331
Deferred		(50	)		18			(6	)
State income tax		287			364			325
Total income tax provision	$	2,161		$	2,097		$	2,087

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)	2016			2015			2014
Tax at statutory rate	$	2,837		$	2,810		$	2,798
State income tax, at statutory rates, net of federal tax benefit		244			237			211
Tax effect of
Tax credits and benefits, net of related expenses		(710	)		(700	)		(701	)
Tax-exempt income		(196	)		(201	)		(205	)
Noncontrolling interests		(20	)		(19	)		(20	)
Other items		6			(30	)(a)		4
Applicable income taxes	$	2,161		$	2,097		$	2,087

(a) Includes the resolution of certain tax matters with taxing authorities in the first quarter of 2015.

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)	2016			2015			2014
Balance at beginning of period	$	243		$	267		$	264
Additions (reductions) for tax positions taken in prior years		57			(17	)		31
Additions for tax positions taken in the current year		12			13			4
Exam resolutions		(6	)		(17	)		(22	)
Statute expirations		(4	)		(3	)		(10	)
Balance at end of period	$	302		$	243		$	267

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)	2016			2015
Deferred Tax Assets
Allowance for credit losses	$	1,667		$	1,615
Federal, state and foreign net operating loss and credit carryforwards		971			464
Accrued expenses		806			764
Partnerships and other investment assets		521			380
Pension and postretirement benefits		394			247
Securities available-for-sale and financial instruments		220			–
Stock compensation		120			131
Other deferred tax assets, net		291			219
Gross deferred tax assets		4,990			3,820
Deferred Tax Liabilities
Leasing activities		(3,096	)		(3,026	)
Goodwill and other intangible assets		(962	)		(859	)
Mortgage servicing rights		(883	)		(859	)
Loans		(234	)		(204	)
Fixed assets		(60	)		(111	)
Securities available-for-sale and financial instruments		–			(47	)
Other deferred tax liabilities, net		(113	)		(55	)
Gross deferred tax liabilities		(5,348	)		(5,161	)
Valuation allowance		(121	)		(137	)
Net Deferred Tax Asset (Liability)	$	(479	)	$	(1,478	)