Income taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) were as follows:

	Year Ended December 31
	2012		2011			2010
	(In thousands)
Current
Federal	$	309,156	$	277,631		$	250,489
State and city		82,014		53,566			55,071
Total current		391,170		331,197			305,560
Deferred
Federal		117,229		34,325			47,123
State and city		14,629		(401	)		3,945
Total deferred		131,858		33,924			51,068
Total income taxes applicable to pre-tax income	$	523,028	$	365,121		$	356,628

Schedule of Income Tax Expense Benefit Reconciliation

Total income taxes differed from the amount computed by applying the statutory federal income tax rate to pre-tax income as follows:

	Year Ended December 31
	2012			2011			2010
	(In thousands)
Income taxes at statutory federal income tax rate	$	543,384		$	428,610		$	382,476
Increase (decrease) in taxes:
Tax-exempt income		(33,890	)		(33,799	)		(32,466	)
State and city income taxes, net of federal income tax effect		62,818			34,557			38,360
Low income housing and other credits		(42,074	)		(40,763	)		(29,882	)
Non-taxable gain on acquisition		—			(22,725	)		—
Other		(7,210	)		(759	)		(1,860	)
	$	523,028		$	365,121		$	356,628

Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) were comprised of the following at December 31:

	2012			2011			2010
	(In thousands)
Losses on loans and other assets	$	809,033		$	896,219		$	550,970
Postretirement and other employee benefits		34,517			39,992			28,135
Incentive compensation plans		50,067			49,183			27,388
Interest on loans		72,278			46,965			43,563
Retirement benefits		91,980			147,997			42,422
Stock-based compensation		69,874			78,014			70,641
Unrealized investment losses		—			50,528			54,557
Depreciation and amortization		12,130			9,563			13,332
Other		103,027			99,012			51,768
Gross deferred tax assets		1,242,906			1,417,473			882,776
Leasing transactions		(291,524	)		(294,150	)		(294,510	)
Unrealized investment gains		(23,574	)		—			—
Capitalized servicing rights		(20,348	)		(17,603	)		(14,739	)
Interest on subordinated note exchange		(8,794	)		(11,275	)		(13,534	)
Other		(61,410	)		(48,803	)		(36,080	)
Gross deferred tax liabilities		(405,650	)		(371,831	)		(358,863	)
Net deferred tax asset	$	837,256		$	1,045,642		$	523,913

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:

	Federal, State and Local Tax			Accrued Interest			Unrecognized Income Tax Benefits
	(In thousands)
Gross unrecognized tax benefits at January 1, 2010	$	28,297		$	19,508		$	47,805
Increases in unrecognized tax benefits as a result of tax positions taken during prior years		—			11,468			11,468
Deceases in unrecognized tax benefits because applicable returns are no longer subject to examination		(1,403	)		(670	)		(2,073	)
Decreases in unrecognized tax benefits as a result of settlements with taxing authorities		(967	)		(549	)		(1,516	)
Decreases in unrecognized tax benefits as a result of tax positions taken in prior years		(1,074	)		(9,061	)		(10,135	)
Gross unrecognized tax benefits at December 31, 2010		24,853			20,696			45,549
Increases in unrecognized tax benefits as a result of tax positions taken during 2011		4,659			—			4,659
Decreases in unrecognized tax benefits as a result of settlements with taxing authorities		(9,742	)		(5,497	)		(15,239	)
Decreases in unrecognized tax benefits as a result of tax positions taken in prior years		—			(1,645	)		(1,645	)
Decreases in unrecognized tax benefits because applicable returns are no longer subject to examination		(8,471	)		(8,201	)		(16,672	)
Unrecognized tax benefits acquired in a business combination		7,034			3,924			10,958
Gross unrecognized tax benefits at December 31, 2011		18,333			9,277			27,610
Increases in unrecognized tax benefits as a result of tax positions taken during 2012		860			—			860
Increases in unrecognized tax benefits as a result of tax positions taken in prior years		—			4,514			4,514
Decreases in unrecognized tax benefits as a result of settlements with taxing authorities		(1,002	)		—			(1,002	)
Decreases in unrecognized tax benefits because applicable returns are no longer subject to examination		(1,643	)		(1,412	)		(3,055	)
Gross unrecognized tax benefits at December 31, 2012	$	16,548		$	12,379			28,927
Less: Federal, state and local income tax benefits								(9,479	)
Net unrecognized tax benefits at December 31, 2012 that, if recognized, would impact the effective income tax rate							$	19,448