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Income Taxes
 12 Months Ended
Dec. 31, 2022
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)202220212020
Current expense:   
Federal$930 $1,113 $979 
State115 91 155 
Total current expense1,045 1,204 1,134 
Deferred expense:
Federal302 235 (131)
State55 117 (22)
Total deferred expense357 352 (153)
Provision for income taxes$1,402 $1,556 $981 

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 effective tax rate is presented in the following table:
Year Ended December 31,
202220212020
(Dollars in millions)Amount% of Income Before TaxesAmount% of Income Before TaxesAmount% of Income Before Taxes
Federal income taxes at statutory rate$1,611 21.0 %$1,679 21.0 %$1,149 21.0 %
Increase (decrease) in provision for income taxes as a result of:
State income taxes, net of federal tax benefit134 1.7 164 2.1 105 1.9 
Income tax credits, net of amortization(233)(3.0)(195)(2.4)(178)(3.3)
Tax-exempt interest(109)(1.4)(86)(1.1)(99)(1.8)
Other, net(1)— (6)(0.1)4 0.1 
Provision for income taxes$1,402 18.3 $1,556 19.5 $981 17.9 

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. In the Consolidated Balance Sheets, a net deferred income tax asset is recorded in Other assets and a net deferred income tax liability is recorded in Other liabilities. Significant DTAs and DTLs, net of the federal impact for state taxes, are presented in the following table:
December 31,
(Dollars in millions)
20222021
DTAs:  
Net unrealized losses in AOCI$4,150 $488 
ALLL1,022 1,033 
Employee compensation and benefits765 819 
Operating lease liability372 389 
Accruals and reserves207 245 
Federal and state NOLs and other carryforwards125 113 
Loans— 53 
Other190 59 
Total gross DTAs6,831 3,199 
Valuation allowance(106)(105)
Total DTAs net of valuation allowance6,725 3,094 
DTLs:
Pension1,532 1,416 
Goodwill and other intangible assets686 630 
Equipment and auto leasing422 465 
MSRs345 360 
ROU assets283 280 
Loans279 — 
Other151 173 
Total DTLs3,698 3,324 
Net DTA (DTL)$3,027 $(230)
The DTAs include state NOLs and other state carryforwards that will expire, if not utilized, in varying amounts from 2023 to 2042. The Company had a valuation allowance recorded against certain state NOL carryforward DTAs of $106 million and $105 million at December 31, 2022 and 2021, respectively.

The following table provides a rollforward of the Company’s gross federal and state UTBs, excluding interest and penalties:
(Dollars in millions)Dec 31, 2022Dec 31, 2021
Balance, January 1$104 $133 
Increases in UTBs related to prior years2 3 
Decreases in UTBs related to prior years(2)(16)
Increases in UTBs related to the current year9 8 
Decreases in UTBs related to settlements(4)(14)
Decreases in UTBs related to lapse of the applicable statues of limitations(12)(10)
Balance, December 31$97 $104 

The amount of UTBs that would favorably affect the Company’s effective tax rate, if recognized, was $80 million and $72 million at December 31, 2022 and 2021, 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 $11 million and $9 million for interest and penalties related to its UTBs at December 31, 2022 and 2021, 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 assessment by the IRS for taxable years prior to 2019. With limited exceptions, the Company is no longer subject to assessment by state and local taxing authorities for taxable years prior to 2016. It is reasonably possible that the liability for unrecognized tax benefits could decrease by as much as $14 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.