Income taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of the Income Tax Provision

The components of the income tax provision are as follows:

Provision for income taxes	Year ended Dec. 31,
(in millions)	2022		2021		2020
Current tax expense:
Federal	$	190	$	160	$	465
Foreign	404		353		407
State and local	19		107		163
Total current tax expense	613		620		1,035
Deferred tax expense (benefit):
Federal	104		208		(145)
Foreign	(5)		22		16
State and local	56		27		(64)
Total deferred tax expense (benefit)	155		257		(193)
Provision for income taxes	$	768	$	877	$	842

Components of Income Before Taxes

The components of income before taxes are as follows:

Income before taxes	Year ended Dec. 31,
(in millions)	2022		2021		2020
Domestic	$	1,697	$	2,965	$	2,698
Foreign	1,631		1,683		1,770
Income before taxes	$	3,328	$	4,648	$	4,468

Components of Net Deferred Tax Liability

The components of our net deferred tax liability are as follows:

Net deferred tax liability	Dec. 31,
(in millions)	2022		2021
Depreciation and amortization	$	2,063	$	2,149
Pension obligation	374		451
Other liabilities	145		260
Renewable energy investment	205		238
Securities valuation	(31)		81
Equity investments	57		58
Leasing	(25)		(2)
Other assets	(31)		(36)
Credit losses on loans	(70)		(61)
Reserves not deducted for tax	(154)		(126)
Tax credit carryforward	(224)		—
Employee benefits	(253)		(281)
U.S. foreign tax credits	(100)		(83)
Valuation allowance	100		83
Net deferred tax liability	$	2,056	$	2,731

Tax Rate Reconciliations

The statutory federal income tax rate is reconciled to our effective income tax rate below:

Effective tax rate	Year ended Dec. 31,
	2022		2021		2020
Federal rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal income tax benefit	1.8		2.3		1.8
Foreign operations	2.1		0.8		1.5
Tax credits	(6.1)		(4.6)		(4.1)
Tax-exempt income	(1.0)		(1.0)		(1.0)
Federal Deposit Insurance Corporation (“FDIC”) assessment	0.4		0.3		0.3
Stock compensation	(0.6)		(0.1)		—
Goodwill impairment	3.9		—		—
Divestiture of stock in subsidiary	1.0		—		—
Other – net	0.6		0.2		(0.7)
Effective tax rate	23.1	%	18.9	%	18.8	%

Unrecognized Tax Benefits

Unrecognized tax positions
(in millions)	2022		2021		2020
Beginning balance at Jan. 1, – gross	$	138	$	119	$	173
Prior period tax positions:
Increases	—		18		45
Decreases	(11)		(3)		(14)
Current period tax positions	8		9		15
Settlements	(16)		(5)		(100)
Statute expiration	(13)		—		—
Ending balance at Dec. 31, – gross	$	106	$	138	$	119