Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The significant components of income tax expense from continuing operations were as follows.



Year ended December 31, ($ in millions)	2017			2016		2015
Current income tax (benefit) expense
U.S. federal	$	(17	)	$	—	$	—
Foreign	6			8		6
State and local	53			9		3
Total current expense	42			17		9
Deferred income tax expense (benefit)
U.S. federal	566			423		454
Foreign	—			—		1
State and local	(27		)	30		32
Total deferred expense	539			453		487
Total income tax expense from continuing operations	$	581		$	470	$	496

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of income tax expense from continuing operations with the amounts at the statutory U.S. federal income tax rate is shown in the following table.



Year ended December 31, ($ in millions)	2017			2016			2015
Statutory U.S. federal tax expense	$	527		$	553		$	488
Change in tax resulting from
Valuation allowance change, excluding expirations	(49		)	51			(25		)
Tax credits, excluding expirations	(12		)	(15		)	(13		)
State and local income taxes, net of federal income tax benefit (a)	7			35			38
Nondeductible expenses	4			7			14
Changes in unrecognized tax expenses (benefits) (b)	1			(161		)	(5		)
Other, net	(16		)	—			(1		)
Total income tax expense from continuing operations exclusive of tax reform impacts	462			470			496
Tax law enactment	119			—			—
Total income tax expense from continuing operations inclusive of tax reform impacts	$	581		$	470		$	496


(a)	Amount for 2017 includes state deferred tax adjustments primarily offset in the valuation allowance change caption.


(b)	Amount for 2016 is primarily the result of a U.S. tax reserve release in the second quarter of 2016 related to a prior-year federal return.

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The significant components of deferred tax assets and liabilities are reflected in the following table.



December 31, ($ in millions)	2017			2016
Deferred tax assets
Tax credit carryforwards	$	2,002		$	1,987
Adjustments to loan value	450			546
Tax loss carryforwards	302			936
State and local taxes	200			162
Unearned insurance premiums	85			141
Hedging transactions	49			123
Other	108			208
Gross deferred tax assets	3,196			4,103
Valuation allowance	(1,123		)	(646		)
Deferred tax assets, net of valuation allowance	2,073			3,457
Deferred tax liabilities
Lease transactions	1,212			1,789
Deferred acquisition costs	269			424
Debt transactions	95			161
Other	44			107
Gross deferred tax liabilities	1,620			2,481
Net deferred tax assets (a) (b)	$	453		$	976

(a)

Amounts include $461 million and $994 million of net deferred tax assets included in other assets on our Consolidated Balance Sheet for tax jurisdictions in a total net deferred tax asset position and $8 million and $18 million included in accrued expenses and other liabilities on our Consolidated Balance Sheet for tax jurisdictions in a total net deferred tax liability position at December 31, 2017, and 2016, respectively.

(b)

Amount for 2017 decreased $128 million due to the Tax Act, which is composed of adjustments to our deferred tax assets and liabilities of $421 million and an increase in the valuation allowance of $549 million primarily attributable to foreign tax credit carryforwards. The additional decrease of $395 million primarily resulted from the monetization of deferred tax assets against taxes generated from pretax earnings for the year, offset by deferred tax asset builds stemming from tax credit generation, including low income housing tax credits.

Schedule of Deferred Tax Assets and Related Valuation Allowances Recognized for the Net Operating and Other Loss Carryforwards and Tax Credit Carryforwards [Table Text Block]

The significant components of deferred tax assets and liabilities are reflected in the following table.



December 31, ($ in millions)	2017			2016
Deferred tax assets
Tax credit carryforwards	$	2,002		$	1,987
Adjustments to loan value	450			546
Tax loss carryforwards	302			936
State and local taxes	200			162
Unearned insurance premiums	85			141
Hedging transactions	49			123
Other	108			208
Gross deferred tax assets	3,196			4,103
Valuation allowance	(1,123		)	(646		)
Deferred tax assets, net of valuation allowance	2,073			3,457
Deferred tax liabilities
Lease transactions	1,212			1,789
Deferred acquisition costs	269			424
Debt transactions	95			161
Other	44			107
Gross deferred tax liabilities	1,620			2,481
Net deferred tax assets (a) (b)	$	453		$	976

(a)

(b)

The following table summarizes net deferred tax assets including related valuation allowances at December 31, 2017.



($ in millions)	Deferred tax asset (liability)				Valuation allowance				Net deferred tax asset (liability)			Years of expiration
Tax credit carryforwards
Foreign tax credits	$	1,772			$	(983	)		$	789		2018–2027
General business credits	213				—				213			2031–2037
Alternative minimum tax (AMT) credits	17				—				17			n/a
Total tax credit carryforwards	2,002				(983		)		1,019
Tax loss carryforwards
Net operating losses — federal	302				—				302			2027–2036
Net operating losses — state	253			(a)	(135		)		118			2018–2037
Capital losses — state	2			(a)	(2		)		—			2018–2027
Total tax loss carryforwards	557				(137		)		420
Other net deferred tax liabilities (b)	(983		)		(3		)		(986		)	n/a
Net deferred tax assets	$	1,576			$	(1,123	)	(c)	$	453


(a)	State net operating loss and capital loss carryforwards are included in the state and local taxes and other liabilities totals disclosed in our deferred inventory table above.


(b)	Other net deferred tax liabilities are composed of other liabilities and assets. A portion of these assets are subject to a valuation allowance.


(c)	Includes the valuation allowance impact of the Tax Act of $549 million primarily related to foreign tax credit carryforwards. This valuation allowance impact of the Tax Act is disclosed in the tax law enactment caption in the reconciliation of income tax expense table above.

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits.



($ in millions)	2017			2016			2015
Balance at January 1,	$	14		$	185		$	191
Additions based on tax positions related to the current year	—			—			—
Additions for tax positions of prior years	3			12			7
Reductions for tax positions of prior years	(1		)	—			—
Settlements	—			(182		)	(10		)
Expiration of statute of limitations	(1		)	(1		)	(3		)
Balance at December 31,	$	15		$	14		$	185