Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

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



Year ended December 31, ($ in millions)	2018			2017			2016
Current income tax (benefit) expense
U.S. federal	$	(12	)	$	(17	)	$	—
Foreign	5			6			8
State and local	35			53			9
Total current expense	28			42			17
Deferred income tax expense (benefit)
U.S. federal	328			566			423
State and local	3			(27		)	30
Total deferred expense	331			539			453
Total income tax expense from continuing operations	$	359		$	581		$	470

Schedule of Effective Income Tax Rate Reconciliation

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)	2018			2017			2016
Statutory U.S. federal tax expense (a)	$	340		$	527		$	553
Change in tax resulting from
Nondeductible expenses	28			4			7
State and local income taxes, net of federal income tax benefit (b)	26			7			35
Tax law enactment	(23		)	119			—
Changes in unrecognized tax benefits (c)	22			1			(161		)
Tax credits, excluding expirations	(20		)	(12		)	(15		)
Valuation allowance change, excluding expirations	(8		)	(49		)	51
Other, net	(6		)	(16		)	—
Total income tax expense from continuing operations	$	359		$	581		$	470


(a)	The statutory U.S. federal tax rate was 21% for 2018 and 35% for both 2017 and 2016.


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


(c)	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)	2018			2017
Deferred tax assets
Tax credit carryforwards	$	1,796		$	2,002
Adjustments to loan value	366			450
State and local taxes	168			200
Unearned insurance premiums	90			85
Hedging transactions	27			49
Tax loss carryforwards	8			302
Other	222			108
Gross deferred tax assets	2,677			3,196
Valuation allowance	(1,057		)	(1,123		)
Deferred tax assets, net of valuation allowance	1,620			2,073
Deferred tax liabilities
Lease transactions	850			1,212
Deferred acquisition costs	321			269
Debt transactions	93			95
Other	56			44
Gross deferred tax liabilities	1,320			1,620
Net deferred tax assets (a)	$	300		$	453

(a)

Amounts include $317 million and $461 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 at December 31, 2018, and 2017, respectively, and $17 million and $8 million included in accrued expenses and other liabilities on our Consolidated Balance Sheet for tax jurisdictions in a total net deferred tax liability position.

Schedule of Deferred Tax Assets and Related Valuation Allowances

The following table summarizes net deferred tax assets including related valuation allowances at December 31, 2018.



($ in millions)	Deferred tax asset (liability)				Valuation allowance			Net deferred tax asset (liability)			Years of expiration
Tax credit carryforwards
Foreign tax credits	$	1,522			$	(963	)	$	559		2022–2028
General business credits	274				—			274			2025–2038
Total tax credit carryforwards	1,796				(963		)	833
Tax loss carryforwards
Net operating losses — federal	8				—			8			2027–2036
Net operating losses — state	198			(a)	(94		)	104			2019–2038
Total federal and state tax loss carryforwards	206				(94		)	112
Other net deferred tax liabilities	(645		)		—			(645		)	n/a
Net deferred tax assets	$	1,357			$	(1,057	)	$	300


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

Schedule of Unrecognized Tax Benefits Roll Forward

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



($ in millions)	2018		2017			2016
Balance at January 1,	$	15	$	14		$	185
Additions based on tax positions related to the current year	—		—			—
Additions for tax positions of prior years	29		3			12
Reductions for tax positions of prior years	—		(1		)	—
Settlements	—		—			(182		)
Expiration of statute of limitations	—		(1		)	(1		)
Balance at December 31,	$	44	$	15		$	14