Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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)	2020		2019		2018
Current income tax (benefit) expense
U.S. federal	$	—	$	(2)	$	(12)
Foreign	6		4		5
State and local	80		65		35
Total current expense	86		67		28
Deferred income tax expense (benefit)
U.S. federal	280		178		328
Foreign	1		2		—
State and local	(39)		(1)		3
Total deferred expense	242		179		331
Total income tax expense from continuing operations	$	328	$	246	$	359

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)	2020		2019		2018
Statutory U.S. federal tax expense	$	297	$	413	$	340
Change in tax resulting from
Nondeductible expenses	37		29		28
State and local income taxes, net of federal income tax benefit	36		50		26
Tax credits, excluding expirations	(29)		(27)		(20)
Changes in unrecognized tax benefits	4		5		22
Valuation allowance change, excluding expirations	(3)		(219)		(8)
Tax law enactment	—		(1)		(23)
Other, net	(14)		(4)		(6)
Total income tax expense from continuing operations	$	328	$	246	$	359

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)	2020		2019
Deferred tax assets
Tax credit carryforwards	$	1,786	$	1,784
Adjustments to loan value	923		448
State and local taxes	191		153
Other	366		312
Gross deferred tax assets	3,266		2,697
Valuation allowance	(835)		(837)
Deferred tax assets, net of valuation allowance	2,431		1,860
Deferred tax liabilities
Lease transactions	1,809		1,325
Deferred acquisition costs	391		366
Other	229		178
Gross deferred tax liabilities	2,429		1,869
Net deferred tax assets (liabilities) (a)	$	2	$	(9)

(a)Amounts include $94 million and $58 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, 2020, and 2019, respectively, and $92 million and $67 million included in accrued expenses and other liabilities on our Consolidated Balance Sheet for tax jurisdictions in a total net deferred tax liability position.

Summary of Valuation Allowance

The following table summarizes net deferred tax assets including related valuation allowances at December 31, 2020.

($ in millions)	Deferred tax asset (liability)			Valuation allowance		Net deferred tax asset (liability)		Years of expiration
Tax credit carryforwards
Foreign tax credits	$	1,340		$	(734)	$	606	2022–2030
General business credits	446			—		446		2025–2040
Total tax credit carryforwards	1,786			(734)		1,052
Tax loss carryforwards
Net operating losses — federal	7		(a)	—		7		2027–2036
Net operating losses — state	171		(b)	(101)		70		2021–2040
Total federal and state tax loss carryforwards	178			(101)		77
Other net deferred tax liabilities	(1,127)			—		(1,127)		n/a
Net deferred tax assets (liabilities)	$	837		$	(835)	$	2

(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)	2020		2019		2018
Balance at January 1,	$	48	$	44	$	15
Additions based on tax positions related to the current year	—		—		—
Additions for tax positions of prior years	5		11		29
Reductions for tax positions of prior years	—		(5)		—
Settlements	—		(2)		—
Expiration of statute of limitations	—		—		—
Balance at December 31,	$	53	$	48	$	44

Included in the unrecognized tax benefits balances are some items, the recognition of which would not affect the effective tax rate, such as the tax effect of certain temporary differences and the portion of gross state unrecognized tax benefits that would be offset by the tax benefit of the associated federal deduction. At December 31, 2020, 2019, and 2018, the balance of unrecognized tax benefits that, if recognized, would affect our effective tax rate were $42 million, $38 million, and $34 million, respectively.

We recognize accrued interest and penalties related to uncertain income tax positions in interest expense and other operating expenses, respectively. For the years ended December 31, 2020, 2019, and 2018, the cumulative accrued balance for interest and penalties was less than $1 million and interest and penalties of $1 million or less were accrued each year.

It is reasonably possible that the unrecognized tax benefits will decrease by up to $51 million over the next 12 months if certain tax matters ultimately settle with the applicable taxing jurisdictions.

We file tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. Our most significant operations are in the United States and Canada. The oldest tax years that remain subject to examination for those jurisdictions are 2017 and 2011, respectively.