XML 92 R52.htm IDEA: XBRL DOCUMENT v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The components of income tax expense for 2021, 2020 and 2019 are presented in the table below.
Income Tax Expense
(Dollars in millions)202120202019
Current income tax expense   
U.S. federal$1,076 $1,092 $1,136 
U.S. state and local775 1,076 901 
Non-U.S. 985 670 852 
Total current expense2,836 2,838 2,889 
Deferred income tax expense   
U.S. federal962 (799)2,001 
U.S. state and local491 (233)223 
Non-U.S. (2,291)(705)211 
Total deferred expense(838)(1,737)2,435 
Total income tax expense$1,998 $1,101 $5,324 
Schedule of Effective Income Tax Rate Reconciliation A reconciliation of the expected U.S. federal income tax expense, calculated by applying the federal statutory tax rate, to the Corporation’s actual income tax expense, and the effective tax rates for 2021, 2020 and 2019 are presented in the following table.
Reconciliation of Income Tax Expense
 AmountPercentAmountPercentAmountPercent
(Dollars in millions)202120202019
Expected U.S. federal income tax expense$7,135 21.0 %$3,989 21.0 %$6,878 21.0 %
Increase (decrease) in taxes resulting from:
State tax expense, net of federal benefit1,087 3.2 728 3.8 1,283 3.9 
Affordable housing/energy/other credits(3,795)(11.2)(2,869)(15.1)(2,365)(7.2)
Tax law changes(2,050)(6.0)(699)(3.7)— — 
Tax-exempt income, including dividends(352)(1.0)(346)(1.8)(433)(1.3)
Changes in prior-period UTBs, including interest(155)(0.5)(41)(0.2)(613)(1.9)
Nondeductible expenses206 0.6 324 1.7 290 0.9 
Rate differential on non-U.S. earnings45 0.1 218 1.1 504 1.5 
Other(123)(0.3)(203)(1.0)(220)(0.6)
Total income tax expense $1,998 5.9 %$1,101 5.8 %$5,324 16.3 %
Reconciliation of Change in Unrecognized Tax Benefits
The reconciliation of the beginning unrecognized tax benefits (UTB) balance to the ending balance is presented in the table below.
Reconciliation of the Change in Unrecognized Tax Benefits
(Dollars in millions)202120202019
Balance, January 1$1,340 $1,175 $2,197 
Increases related to positions taken during the current year
208 238 238 
Increases related to positions taken during prior years (1)
265 99 401 
Decreases related to positions taken during prior years (1)
(413)(172)(1,102)
Settlements(23)— (541)
Expiration of statute of limitations(55)— (18)
Balance, December 31$1,322 $1,340 $1,175 
(1)    The sum of the positions taken during prior years differs from the $(155) million, $(41) million and $(613) million in the Reconciliation of Income Tax Expense table due to temporary items, state items and jurisdictional offsets, as well as the inclusion of interest in the Reconciliation of Income Tax Expense table.
Summary of Income Tax Examinations The table below summarizes the status of examinations by major jurisdiction for the Corporation and various subsidiaries at December 31, 2021.
Tax Examination Status
Years under
Examination (1)
Status at December 31 2021
United States2017-2021Field Examination
California2012-2014Appeals
California2015-2017Field Examination
New York2016-2018Field Examination
United Kingdom (2)
2019Field Examination
(1)    All tax years subsequent to the years shown remain subject to examination.
(2) Field examination for tax year 2020 to begin in 2022.
Schedule of Deferred Tax Assets and Liabilities
Significant components of the Corporation’s net deferred tax assets and liabilities at December 31, 2021 and 2020 are presented in the table below.
Deferred Tax Assets and Liabilities
 December 31
(Dollars in millions)20212020
Deferred tax assets  
Net operating loss carryforwards$9,360 $7,717 
Allowance for credit losses3,097 4,701 
Security, loan and debt valuations2,746 2,571 
Lease liability2,508 2,400 
Accrued expenses1,626 1,481 
Employee compensation and retirement benefits1,392 1,582 
Credit carryforwards705 484 
Other1,160 1,412 
Gross deferred tax assets22,594 22,348 
Valuation allowance(1,988)(2,346)
Total deferred tax assets, net of valuation
   allowance		20,606 20,002 
  
Deferred tax liabilities
Equipment lease financing3,083 3,101 
Right-to-use asset2,358 2,296 
Fixed assets2,082 1,957 
ESG-related tax credit investments1,387 1,930 
Available-for-sale securities
1,016 1,701 
Other1,527 1,570 
Gross deferred tax liabilities11,453 12,555 
Net deferred tax assets$9,153 $7,447 
Schedule of Operating Loss Carryforwards
The table below summarizes the deferred tax assets and related valuation allowances recognized for the net operating loss (NOL) and tax credit carryforwards at December 31, 2021.
Net Operating Loss and Tax Credit Carryforward Deferred Tax Assets
(Dollars in millions)Deferred
Tax Asset		Valuation
Allowance		Net
Deferred
Tax Asset		First Year
Expiring
Net operating losses - U.K. (1)
$7,713 $— $7,713 None
Net operating losses - other non-U.S. 
494 (253)241 Various
Net operating losses - U.S. states (2)
1,153 (610)543 Various
Foreign tax credits705 (705)— After 2028
(1)Represents U.K. broker-dealer net operating losses that may be carried forward indefinitely.
(2)The net operating losses and related valuation allowances for U.S. states before considering the benefit of federal deductions were $1.5 billion and $772 million.
Summary of Tax Credit Carryforwards
The table below summarizes the deferred tax assets and related valuation allowances recognized for the net operating loss (NOL) and tax credit carryforwards at December 31, 2021.
Net Operating Loss and Tax Credit Carryforward Deferred Tax Assets
(Dollars in millions)Deferred
Tax Asset		Valuation
Allowance		Net
Deferred
Tax Asset		First Year
Expiring
Net operating losses - U.K. (1)
$7,713 $— $7,713 None
Net operating losses - other non-U.S. 
494 (253)241 Various
Net operating losses - U.S. states (2)
1,153 (610)543 Various
Foreign tax credits705 (705)— After 2028
(1)Represents U.K. broker-dealer net operating losses that may be carried forward indefinitely.
(2)The net operating losses and related valuation allowances for U.S. states before considering the benefit of federal deductions were $1.5 billion and $772 million.