Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

Note 16 Income Taxes

The net operating loss carryforwards at September 30, 2012 and December 31, 2011 follow:

Table 129: Net Operating Loss Carryforwards and Tax Credit Carryforwards
		September 30			December 31
In millions		2012			2011
Net Operating Loss Carryforwards:
	Federal		$	1,629	$	30
	State			2,597		1,460
	Valuation allowance – State			46		14
Tax Credit Carryforwards:
	Federal		$	35	$	112
	State			3		3

The federal net operating loss carryforwards expire from 2027 to 2028. The state net operating loss carryforwards will expire from 2012 to 2031. The majority of the tax credit carryforwards expire in 2031. The large increases in the net operating loss carryforwards are primarily attributable to the RBC Bank (USA) acquisition.

Examinations are substantially completed for PNC's consolidated federal income tax returns for 2007 and 2008 and there are no outstanding unresolved issues. The Internal Revenue Service (IRS) is currently examining PNC's 2009 and 2010 returns. National City's consolidated federal income tax returns through 2008 have been audited by the IRS. Certain adjustments remain under review by the IRS Appeals Division for years 2003 through 2008. PNC also continues to be under examination with several state taxing authorities.

We had unrecognized tax benefits of $178million at September 30, 2012 and $209million at December 31, 2011. At September 30, 2012, $100million of unrecognized tax benefits, if recognized, would favorably impact the effective income tax rate.

It is reasonably possible that the liability for unrecognized tax benefits could increase or decrease in the next twelve months due to completion of tax authorities' exams or the expiration of statutes of limitations. Management estimates that the liability for unrecognized tax benefits could decrease by $78 million within the next twelve months.