Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes (Tables) [Abstract]

Income taxes included in the income statement

Year ended December 31, in millions	2011		2010		2009
Currently payable:
Federal	$	90	$	127	$	(97)
State		(31)		(21)		(60)
Total currently payable		59		106		(157)
Deferred:
Federal		280		51		(806)
State		30		29		(72)
Total deferred		310		80		(878)
Total income tax (benefit) expense (a)	$	369	$	186	$	(1,035)

(a) Income tax (benefit) expense on securities transactions totaled $.4 million in 2011, $5 million in 2010 and $42 million in 2009. Income tax expense excludes equity- and gross receipts-based taxes, which are assessed in lieu of an income tax in certain states in which we operate. These taxes, which are recorded in “noninterest expense” on the income statement, totaled $21 million in 2011, $19 million in 2010 and $24 million in 2009.

Significant components of deferred tax assets and liabilities, included in "accrued income and other assets" and "accrued expense and other liabilities"

December 31, in millions	2011		2010
Allowance for loan and lease losses	$	409	$	701
Employee benefits		228		202
Federal credit carryforwards		442		390
Net operating losses		12		71
Other		298		381
Total deferred tax assets		1,389		1,745
Leasing transactions		985		1,033
Net unrealized securities gains		199		158
Other		113		124
Total deferred tax liabilities		1,297		1,315
Net deferred tax assets (liabilities) (a)	$	92	$	430

(a) From continuing operations

Total income tax (benefit) expense and the resulting effective tax rate

Year ended December 31, dollars in millions	2011					2010					2009
	Amount		Rate			Amount		Rate			Amount		Rate
Income (loss) before income taxes times 35% statutory federal tax rate	$	471		35.0	%	$	278		35.0	%	$	(804)		35.0	%
Amortization of tax-advantaged investments		65		4.8			59		7.4			53		(2.3)
Amortization of nondeductible intangibles		—		—			—		—			38		(1.7)
Foreign tax adjustments		17		1.3			24		3.0			9		(.4)
Reduced tax rate on lease financing income		—		—			6		.8			(16)		.7
Tax-exempt interest income		(16)		(1.2)			(17)		(2.1)			(17)		.8
Corporate-owned life insurance income		(42)		(3.1)			(48)		(6.0)			(40)		1.7
Increase (decrease) in tax reserves		2		.1			(6)		(.8)			(53)		2.3
Interest refund (net of federal tax benefit)		(24)		(1.8)			—		—			—		—
State income tax, net of federal tax benefit		(1)		—			5		.6			(86)		3.7
Tax credits		(125)		(9.3)			(117)		(14.7)			(106)		4.6
Other		22		1.6			2		.2			(13)		.6
Total income tax expense (benefit)	$	369		27.4	%	$	186		23.4	%	$	(1,035)		45.0	%

The change in liability for unrecognized tax benefits

Year ended December 31, in millions	2011		2010
Balance at beginning of year	$	23	$	21
Increase for other tax positions of prior years		7		2
Decrease related to other settlements with taxing authorities		(22)		—
Balance at end of year	$	8	$	23