Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.8.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Reconciliation of gross unrecognized tax benefits
The following table provides a reconciliation of the beginning and ending amounts of gross unrecognized tax benefits:
(dollar amounts in millions)
2017
 
2016
Unrecognized tax benefits at beginning of year
$
24

 
$
23

Gross increases for tax positions taken during current period

 
1

Gross increases for tax positions taken during prior years
26

 

Unrecognized tax benefits at end of year
$
50

 
$
24

Summary of provision (benefit) for income taxes
The following is a summary of the provision (benefit) for income taxes:
 
Year Ended December 31,
(dollar amounts in millions)
2017
 
2016
 
2015
Current tax provision (benefit)
 
 
 
 
 
Federal
$
41

 
$
40

 
$
146

State
(1
)
 
3

 
6

Total current tax provision (benefit)
40

 
43

 
152

Deferred tax provision (benefit)
 
 
 
 
 
Federal
151

 
161

 
67

State
17

 
4

 
2

Total deferred tax provision (benefit)
168

 
165

 
69

Provision (benefit) for income taxes
$
208

 
$
208

 
$
221

Reconcilement of provision (benefit) for income taxes
The following is a reconciliation for provision for income taxes:
 
Year Ended December 31,
(dollar amounts in millions)
2017
 
2016
 
2015
Provision for income taxes computed at the statutory rate
$
488

 
$
322

 
$
320

Increases (decreases):
 
 
 
 
 
Tax-exempt income
(31
)
 
(27
)
 
(21
)
Tax-exempt bank owned life insurance income
(23
)
 
(20
)
 
(18
)
General business credits
(71
)
 
(64
)
 
(48
)
Capital loss
(67
)
 
(46
)
 
(46
)
Impact from TCJA
(123
)
 

 

Affordable housing investment amortization, net of tax benefits
46

 
37

 
32

State income taxes, net
11

 
5

 
5

Stock based compensation
(13
)
 
(4
)
 

Other
(9
)
 
5

 
(3
)
Provision (benefit) for income taxes
$
208

 
$
208

 
$
221

Significant components of deferred tax assets and liabilities
The significant components of deferred tax assets and liabilities at December 31, were as follows:
 
At December 31,
(dollar amounts in millions)
2017 (1)
 
2016 (2)
Deferred tax assets:
 
 
 
Allowances for credit losses
$
162

 
$
255

Tax credit carryforward
153

 
76

Fair value adjustments
142

 
217

Net operating and other loss carryforward
108

 
141

Accrued expense/prepaid
17

 
64

Market discount
10

 
8

Pension and other employee benefits

 
35

Partnership investments
7

 
23

Other assets
6

 
11

Total deferred tax assets
605

 
830

Deferred tax liabilities:
 
 
 
Lease financing
249

 
325

Loan origination costs
116

 
138

Deferred dividend income
77

 

Purchase accounting adjustments
68

 
74

Operating assets
53

 
54

Mortgage servicing rights
39

 
51

Securities adjustments
6

 
56

Pension and other employee benefits
5

 

Other liabilities
18

 
9

Total deferred tax liabilities
631

 
707

Net deferred tax (liability) asset before valuation allowance
(26
)
 
123

Valuation allowance
(6
)
 
(5
)
Net deferred tax (liability) asset
$
(32
)
 
$
118


(1)
2017 balances reflect federal statutory tax rate 21%.
(2)
2016 balances reflect federal statutory tax rate 35%.