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Income Taxes
6 Months Ended
Jun. 30, 2015
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
NOTE 10 - INCOME TAXES
For the three months ended June 30, 2015 and 2014, the provision for income taxes was $202 million and $173 million, representing effective tax rates of 29% and 30%, respectively. The effective tax rate for the three months ended June 30, 2015 was favorably impacted by $15 million in net discrete income tax items. For the six months ended June 30, 2015 and 2014, the provision for income taxes was $393 million and $298 million, representing effective tax rates of 30% and 27%, respectively. The higher effective tax rate for the six months ended June 30, 2015, compared to the six months ended June 30, 2014, was primarily due to higher pre-tax income.
The provision for income taxes includes both federal and state income taxes and differs from the provision using statutory rates primarily due to favorable permanent tax items such as income from lending to tax exempt entities and federal tax credits from community reinvestment activities. The Company calculated the provision for income taxes for the three and six months ended June 30, 2015 and 2014 by applying the estimated annual effective tax rate to year-to-date pre-tax income and adjusting for discrete items that occurred during the period.
The Company's liability for UTBs was $216 million and $210 million at June 30, 2015 and December 31, 2014, respectively. It is reasonably possible that the liability for UTBs could decrease by as much as $120 million during the next 12 months due to completion of tax authority examinations. It is uncertain how much, if any, of this potential decrease will impact the Company’s effective tax rate.