Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Provision

The components of the income tax provision are as follows:



	Year Ended December 31,
(Dollars in millions)	2017		2016			2015
Current expense:
Federal	$	539	$	959		$	585
State	80		97			99
Total current expense	619		1,056			684
Deferred expense:
Federal	253		(14		)	99
State	39		16			11
Total deferred expense	292		2			110
Provision for income taxes	$	911	$	1,058		$	794

Schedule of Reconciliation Between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Income Tax Rate

The reasons for the difference between the provision for income taxes and the amount computed by applying the statutory Federal income tax rate to income before income taxes were as follows:



	Year Ended December 31,
(Dollars in millions)	2017			2016			2015
Federal income taxes at statutory rate of 35%	$	1,164		$	1,225		$	1,021
Increase (decrease) in provision for income taxes as a result of:
State income taxes, net of federal tax benefit	77			73			72
Affordable housing projects proportional amortization	236			205			181
Affordable housing projects tax credits and other tax benefits	(319		)	(279		)	(249		)
Tax exempt income	(139		)	(151		)	(129		)
Federal tax reform impact	(43		)	—			—
Excess tax benefits for equity-based compensation	(52		)	—			—
Adjustments for uncertain tax positions	—			(6		)	(107		)
Other, net	(13		)	(9		)	5
Provision for income taxes	$	911		$	1,058		$	794
Effective income tax rate	27.4		%	30.2		%	27.2		%

Schedule of Temporary Tax Differences That Gave Rise to Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred tax assets and liabilities are reflected in the table below:



	December 31,
(Dollars in millions)	2017			2016
Deferred tax assets:
ALLL	$	359		$	564
Postretirement plans	311			451
Net unrealized loss on AFS securities	112			155
Equity-based compensation	66			124
Reserves and expense accruals	114			238
Partnerships	70			116
Other	160			317
Total deferred tax assets	1,192			1,965
Deferred tax liabilities:
Prepaid pension plan expense	436			558
MSRs	234			358
Lease financing	366			587
Loan fees and expenses	114			103
Identifiable intangible assets	163			224
Other	31			45
Total deferred tax liabilities	1,344			1,875
Net deferred tax asset (liability)	$	(152	)	$	90

Schedule of Changes in Unrecognized Tax Benefits

The following table presents changes in unrecognized tax benefits:



	As of/ For the Year Ended December 31,
(Dollars in millions)	2017		2016			2015
Beginning balance of unrecognized tax benefits	$	1	$	426		$	503
Additions based on tax positions related to current year	—		—			—
Additions (reductions) for tax positions of prior years	—		(5		)	(76		)
Settlements	—		(420		)	(1		)
Lapse of statute of limitations	—		—			(1		)
Unrecognized deferred tax benefits from acquisitions	—		—			1
Ending balance of unrecognized tax benefits	$	1	$	1		$	426

Unrecognized tax benefits that would have impacted effective rate if recognized
Federal	$	—	$	—		$	422
State	1		1			3