Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

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)	2019			2018			2017
Current income tax (benefit) expense
U.S. federal	$	(2	)	$	(12	)	$	(17	)
Foreign	4			5			6
State and local	65			35			53
Total current expense	67			28			42
Deferred income tax expense (benefit)
U.S. federal	178			328			566
Foreign	2			—			—
State and local	(1		)	3			(27		)
Total deferred expense	179			331			539
Total income tax expense from continuing operations	$	246		$	359		$	581

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)	2019			2018			2017
Statutory U.S. federal tax expense (a)	$	413		$	340		$	527
Change in tax resulting from
Valuation allowance change, excluding expirations	(219		)	(8		)	(49		)
State and local income taxes, net of federal income tax benefit (b)	50			26			7
Nondeductible expenses	29			28			4
Tax credits, excluding expirations	(27		)	(20		)	(12		)
Changes in unrecognized tax benefits	5			22			1
Tax law enactment	(1		)	(23		)	119
Other, net	(4		)	(6		)	(16		)
Total income tax expense from continuing operations	$	246		$	359		$	581

(a) The statutory U.S. federal tax rate was 21% for both the years ended December 31, 2019, and 2018, and 35% for year ended December 31, 2017.

(b)

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

Schedule of Deferred Tax Assets and Liabilities

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

December 31, ($ in millions)	2019			2018
Deferred tax assets
Tax credit carryforwards	$	1,784		$	1,796
Adjustments to loan value	448			366
State and local taxes	153			168
Unearned insurance premiums	98			90
Other	214			257
Gross deferred tax assets	2,697			2,677
Valuation allowance	(837		)	(1,057		)
Deferred tax assets, net of valuation allowance	1,860			1,620
Deferred tax liabilities
Lease transactions	1,325			850
Deferred acquisition costs	366			321
Debt transactions	91			93
Other	87			56
Gross deferred tax liabilities	1,869			1,320
Net deferred tax (liabilities) assets (a)	$	(9	)	$	300

(a)

Amounts include $58 million and $317 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, 2019, and 2018, respectively, and $67 million and $17 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, 2019.

($ in millions)	Deferred tax asset (liability)				Valuation allowance			Net deferred tax asset (liability)			Years of expiration
Tax credit carryforwards
Foreign tax credits	$	1,433			$	(737	)	$	696		2022–2029
General business credits	351				—			351			2025–2039
Total tax credit carryforwards	1,784				(737		)	1,047
Tax loss carryforwards
Net operating losses — federal	7			(a)	—			7			2027–2036
Net operating losses — state	176			(b)	(100		)	76			2020–2039
Total federal and state tax loss carryforwards	183				(100		)	83
Other net deferred tax liabilities	(1,139		)		—			(1,139		)	n/a
Net deferred tax assets (liabilities)	$	828			$	(837	)	$	(9	)

(a) Federal net operating loss carryforwards are included in the other assets total disclosed in our deferred inventory table above.

(b)

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)	2019			2018		2017
Balance at January 1,	$	44		$	15	$	14
Additions based on tax positions related to the current year	—			—		—
Additions for tax positions of prior years	11			29		3
Reductions for tax positions of prior years	(5		)	—		(1		)
Settlements	(2		)	—		—
Expiration of statute of limitations	—			—		(1		)
Balance at December 31,	$	48		$	44	$	15