Income Taxes (Tables)

12 Months Ended

Dec. 31, 2010

Income taxes [Abstract]

Components of income tax expense/(benefit) included in the Consolidated Statements of Income

Year ended December 31, (in millions)	2010			2009			2008
Current income tax expense
U.S. federal	$	4,001		$	4,698		$	395
Non-U.S.		2,712			2,368			1,009
U.S. state and local		1,744			971			307
Total current income tax expense		8,457			8,037			1,711
Deferred income tax expense/(benefit)
U.S. federal		(753	)		(2,867	)		(3,015	)
Non-U.S.		169			(454	)		1
U.S. state and local		(384	)		(301	)		377
Total deferred income tax expense/(benefit)		(968	)		(3,622	)		(2,637	)
Total income tax expense/ (benefit) before extraordinary gain	$	7,489		$	4,415		$	(926	)

Reconciliation of the applicable statutory U.S. income tax rate to the effective tax rate the effective tax rate

Year ended December 31,	2010			2009			2008
Statutory U.S. federal tax rate		35.0	%		35.0	%		35.0	%
Increase/(decrease) in tax rate resulting from:
U.S. state and local income taxes, net of U.S. federal income tax benefit		3.6			2.7			16.0
Tax-exempt income		(2.4	)		(3.9	)		(14.8	)
Non-U.S. subsidiary earnings(a)		(2.2	)		(1.7	)		(53.6	)
Business tax credits		(3.7	)		(5.5	)		(24.5	)
Bear Stearns equity losses		—			—			5.7
Other, net		(0.2	)		0.9			2.8
Effective tax rate		30.1	%		27.5	%		(33.4	)%

(a) Includes earnings deemed to be reinvested indefinitely in non-U.S. subsidiaries.

Significant Components of Deferred Tax Assets and Liabilities

December 31, (in millions)	2010		2009
Deferred tax assets
Allowance for loan losses	$	12,287	$	12,376
Employee benefits		4,279		4,424
Allowance for other than loan losses		6,029		3,995
Non-U.S. operations		956		1,926
Tax attribute carryforwards		1,370		912
Fee income		446		—
Fair value adjustments(a)		51		—
Gross deferred tax assets	$	25,418	$	23,633
Deferred tax liabilities
Depreciation and amortization	$	3,500	$	4,832
Leasing transactions		2,160		2,054
Non-U.S. operations		1,136		1,338
Fee income		—		670
Fair value adjustments(a)		—		328
Other, net		519		147
Gross deferred tax liabilities	$	7,315	$	9,369
Valuation allowance		1,784		1,677
Net deferred tax asset	$	16,319	$	12,587

(a) Includes fair value adjustments related to AFS securities, cash flows hedging activities and other portfolio investments.

Reconciliation of the beginning and ending amount of unrecognized tax benefits

Unrecognized tax benefits

Year ended December 31, (in millions)	2010			2009			2008
Balance at January 1,	$	6,608		$	5,894		$	4,811
Increases based on tax positions related to the current period		813			584			890
Decreases based on tax positions related to the current period		(24	)		(6	)		(109	)
Increases associated with the Bear Stearns merger		—			—			1,387
Increases based on tax positions related to prior periods		1,681			703			501
Decreases based on tax positions related to prior periods		(1,198	)		(322	)		(1,386	)
Decreases related to settlements with taxing authorities		(74	)		(203	)		(181	)
Decreases related to a lapse of applicable statute of limitations		(39	)		(42	)		(19	)
Balance at December 31,	$	7,767		$	6,608		$	5,894

U.S. and non-U.S. components of income before income tax expense/(benefit) and extraordinary gain income

Year ended December 31, (in millions)	2010		2009		2008
U.S.	$	16,568	$	6,263	$	(2,094	)
Non-U.S.(a)		8,291		9,804		4,867
Income before income tax expense/(benefit) and extraordinary gain	$	24,859	$	16,067	$	2,773