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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of the income tax provision are as follows:
Year Ended December 31,
(Dollars in millions)
202120202019
Current expense:   
Federal$1,113 $979 $357 
State91 155 97 
Total current expense1,204 1,134 454 
Deferred expense:
Federal235 (131)290 
State117 (22)38 
Total deferred expense352 (153)328 
Provision for income taxes$1,556 $981 $782 

A reconciliation of the provision for income taxes at the statutory federal income tax rate to the Company’s actual provision for income taxes and actual effective tax rate is presented in the following table:
202120202019
Year Ended December 31,
(Dollars in millions)		Amount% of Income Before TaxesAmount% of Income Before TaxesAmount% of Income Before Taxes
Federal income taxes at statutory rate$1,679 21.0 %$1,149 21.0 %$844 21.0 %
Increase (decrease) in provision for income taxes as a result of:
State income taxes, net of federal tax benefit164 2.1 105 1.9 107 2.7 
Income tax credits, net of amortization(195)(2.4)(178)(3.3)(86)(2.1)
Tax-exempt interest(86)(1.1)(99)(1.8)(69)(1.8)
Other, net(6)(0.1)4 0.1 (14)(0.3)
Provision for income taxes$1,556 19.5 $981 17.9 $782 19.5 

Deferred income tax assets and liabilities result from differences between the timing of the recognition of assets and liabilities for financial reporting purposes and for income tax purposes. DTAs and DTLs are measured using the enacted federal and state tax rates in the periods in which the DTAs or DTLs are expected to be realized. The net deferred income tax liability is recorded in Other liabilities in the Consolidated Balance Sheets. Significant DTAs and DTLs, net of the federal impact for state taxes, are presented in the following table.
December 31,
(Dollars in millions)
20212020
DTAs:  
ALLL$1,033 $1,376 
Employee compensation and benefits819 698 
Net unrealized losses in AOCI488 — 
Operating lease liability389 469 
Accruals and reserves245 305 
Federal and state NOLs and other carryforwards113 149 
Loans53 369 
Other59 57 
Total gross DTAs3,199 3,423 
Valuation allowance(105)(123)
Total DTAs net of valuation allowance3,094 3,300 
DTLs:
Pension1,416 1,299 
Goodwill and other intangible assets630 688 
Equipment and auto leasing465 599 
MSRs360 459 
ROU assets280 327 
Net unrealized gains in AOCI— 222 
Other173 279 
Total DTLs3,324 3,873 
Net DTL$(230)$(573)

The DTAs include Federal and state NOLs and other state carryforwards that will expire, if not utilized, in varying amounts from 2022 to 2041. The Company had a valuation allowance recorded against its state carryforwards and certain state DTAs of $105 million and $123 million at December 31, 2021 and 2020, respectively.
The following table provides a rollforward of the Company’s gross federal and state UTBs, excluding interest and penalties:
December 31,
(Dollars in millions)		20212020
Balance, January 1$133 $127 
Increases in UTBs related to prior years3 4 
Decreases in UTBs related to prior years(16)(1)
Increases in UTBs related to the current year8 18 
Decreases in UTBs related to settlements(14)(13)
Decreases in UTBs related to lapse of the applicable statues of limitations(10)(2)
Balance, December 31$104 $133 

The amount of UTBs that would favorably affect the Company’s effective tax rate, if recognized, was $72 million and $100 million at December 31, 2021 and 2020, respectively. Interest and penalties related to UTBs are recorded in the Provision for income taxes in the Consolidated Statement of Income. The Company had a gross liability of $9 million and $12 million for interest and penalties related to its UTBs at December 31, 2021 and 2020, respectively. The amount of gross expense related to interest and penalties on UTBs was immaterial.

The Company files U.S. federal, state, and local income tax returns. The Company’s federal income tax returns are no longer subject to examination by the IRS for taxable years prior to 2017. With limited exceptions, the Company is no longer subject to examination by state and local taxing authorities for taxable years prior to 2015. It is reasonably possible that the liability for unrecognized tax benefits could decrease by as much as $30 million during the next 12 months due to completion of tax authority examinations and the expiration of statutes of limitations. It is uncertain how much, if any, of this potential decrease will impact the Company’s effective tax rate.