Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense were:

Year Ended December 31 (Dollars in Millions)	2021		2020			2019
Federal
Current	$	1,203	$	1,146		$	1,162
Deferred		469		(291	)		166
Federal income tax		1,672		855			1,328
State
Current		398		355			379
Deferred		111		(144	)		(59	)
State income tax		509		211			320
Total income tax provision	$	2,181	$	1,066		$	1,648

Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 21 Percent to Company's Applicable Income Tax Expense

A reconciliation of expected income tax expense at the federal statutory rate of 21 percent to the Company’s applicable income tax expense follows:

Year Ended December 31 (Dollars in Millions)	2021			2020			2019
Tax at statutory rate	$	2,135		$	1,271		$	1,805
State income tax, at statutory rates, net of federal tax benefit		439			240			355
Tax effect of
Tax credits and benefits, net of related expenses		(331	)		(370	)		(424	)
Tax-exempt income		(114	)		(117	)		(120	)
Nondeductible legal and regulatory expenses		24			29			23
Other items(a)		28			13			9
Applicable income taxes	$	2,181		$	1,066		$	1,648

(a) Includes excess tax benefits associated with stock-based compensation and adjustments related to deferred tax assets and liabilities.

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

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

Year Ended December 31 (Dollars in Millions)	2021			2020			2019
Balance at beginning of period	$	474		$	432		$	335
Additions for tax positions taken in prior years		14			62			168
Additions for tax positions taken in the current year		7			6			6
Exam resolutions		(1	)		(8	)		(62	)
Statute expirations		(7	)		(18	)		(15	)
Balance at end of period	$	487		$	474		$	432

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)	2021			2020
Deferred Tax Assets
Federal, state and foreign net operating loss and credit carryforwards	$	2,331		$	2,495
Allowance for credit losses		1,561			2,042
Accrued expenses		568			554
Obligation for operating leases		281			293
Securities available-for-sale and financial instruments		163			—
Stock compensation		76			84
Pension and postretirement benefits		8			108
Partnerships and other investment assets		—			9
Other deferred tax assets, net		451			383
Gross deferred tax assets		5,439			5,968
Deferred Tax Liabilities
Leasing activities		(2,263	)		(2,511	)
Goodwill and other intangible assets		(845	)		(802	)
Mortgage servicing rights		(593	)		(408	)
Right of use operating leases		(246	)		(249	)
Fixed assets		(238	)		(226	)
Loans		(85	)		(112	)
Partnerships and other investment assets		(8	)		—
Securities available-for-sale and financial instruments		—			(755	)
Other deferred tax liabilities, net		(127	)		(145	)
Gross deferred tax liabilities		(4,405	)		(5,208	)
Valuation allowance		(249	)		(163	)
Net Deferred Tax Asset	$	785		$	597