Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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)	2022		2021		2020
Current income tax expense
U.S. federal	$	1	$	502	$	—
Foreign	3		4		6
State and local	9		168		80
Total current expense	13		674		86
Deferred income tax expense (benefit)
U.S. federal	493		151		280
Foreign	(1)		—		1
State and local	61		(35)		(39)
Total deferred expense	553		116		242
Other tax expense (a)	61		—		—
Total income tax expense from continuing operations	$	627	$	790	$	328

(a)Represents the realization of stranded tax amounts, under the portfolio method, connected to our qualified defined benefit pension plan that was settled during the year ended December 31, 2022. These stranded tax amounts had accumulated in other comprehensive loss over time. Refer to Note 18 for additional information.

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)	2022		2021		2020
Statutory U.S. federal tax expense	$	492	$	810	$	297
Change in tax resulting from
State and local income taxes, net of federal income tax benefit	77		106		36
Tax credits, excluding expirations	(73)		(58)		(29)
Settlement of qualified defined benefit pension plan	61		—		—
Valuation allowance change, excluding expirations	54		(78)		(3)
Nondeductible expenses	31		30		37
Other, net	(15)		(20)		(10)
Total income tax expense from continuing operations	$	627	$	790	$	328

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)	2022		2021
Deferred tax assets
Adjustments to available-for-sale securities, equity securities, and hedging transactions (a)	$	1,095	$	124
Tax credit carryforwards	960		1,014
Adjustments to loan value	822		920
U.S. federal tax loss carryforwards (b)	428		256
State and local taxes	310		233
Other	470		480
Gross deferred tax assets	4,085		3,027
Valuation allowance (c)	(644)		(839)
Deferred tax assets, net of valuation allowance	3,441		2,188
Deferred tax liabilities
Lease transactions	1,831		1,385
Deferred acquisition costs	394		403
Other	145		156
Gross deferred tax liabilities	2,370		1,944
Net deferred tax assets (d)	$	1,071	$	244

(a)Amounts primarily include $1.0 billion and $104 million of deferred tax assets related to available-for-sale securities at December 31, 2022, and 2021, respectively.

(b)Primarily the result of a 100% bonus depreciation election for 2022 and 2021 operating lease originations.

(c)The valuation allowance decreased $195 million to $644 million at December 31, 2022, as a result of a $249 million reduction related to the expiration of foreign tax credit carryforwards, partially offset by an increase of $54 million predominantly related to a reduction in forecasted foreign-sourced income.

(d)Amounts include $1.1 billion and $254 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 $16 million and $10 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, 2022, and 2021, respectively.

Summary of Valuation Allowance

The following table summarizes net deferred tax assets including related valuation allowances at December 31, 2022.

($ in millions)	Deferred tax asset			Valuation allowance		Net deferred tax asset		Years of expiration
Tax credit carryforwards
Foreign tax credits	$	765		$	(517)	$	248	2023–2032
General business credits	$	195		$	—	$	195	2023–2042
Total tax credit carryforwards	960			(517)		443
Tax loss carryforwards
Net operating losses — federal	428			—		428		2027–Indefinite
Net operating losses — state	166		(a)	(127)		39		2023–Indefinite
Total U.S. federal and state tax loss carryforwards	594			(127)		467
Other net deferred tax assets	161			—		161		n/a
Net deferred tax assets (liabilities)	$	1,715		$	(644)	$	1,071

n/a = not applicable

(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)	2022		2021		2020
Balance at January 1,	$	53	$	53	$	48
Additions based on tax positions related to the current year	—		—		—
Additions for tax positions of prior years	2		7		5
Reductions for tax positions of prior years	(2)		(7)		—
Settlements	(7)		—		—
Expiration of statute of limitations	—		—		—
Balance at December 31,	$	46	$	53	$	53