Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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)	2023		2022		2021
Current income tax expense
U.S. federal	$	85	$	1	$	502
Foreign	5		3		4
State and local	36		9		168
Total current expense	126		13		674
Deferred income tax (benefit) expense
U.S. federal	(57)		493		151
Foreign	(1)		(1)		—
State and local	(7)		61		(35)
Total deferred (benefit) expense	(65)		553		116
Other tax expense (a)	—		61		—
Total income tax expense from continuing operations	$	61	$	627	$	790

(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)	2023		2022		2021
Statutory U.S. federal tax expense	$	227	$	492	$	810
Change in tax resulting from
Tax credits, excluding expirations	(133)		(73)		(58)
Valuation allowance change, excluding expirations	(91)		54		(78)
Nondeductible expenses	44		31		30
Unrecognized tax benefits	38		(4)		—
Tax law enactment	(18)		—		(1)
State and local income taxes, net of federal income tax benefit	(4)		77		106
Settlement of qualified defined benefit pension plan	—		61		—
Other, net	(2)		(11)		(19)
Total income tax expense from continuing operations	$	61	$	627	$	790

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)	2023		2022
Deferred tax assets
Adjustments to securities and hedging transactions (a)	$	1,066	$	1,095
Adjustments to loan value	569		822
Tax credit carryforwards	500		960
State and local taxes	305		310
Fixed assets	165		101
U.S. federal tax loss carryforwards (b)	8		428
Other	418		369
Gross deferred tax assets	3,031		4,085
Valuation allowance (c)	(176)		(644)
Deferred tax assets, net of valuation allowance	2,855		3,441
Deferred tax liabilities
Lease transactions	1,134		1,831
Deferred acquisition costs	387		394
Other	121		145
Gross deferred tax liabilities	1,642		2,370
Net deferred tax assets (d)	$	1,213	$	1,071

(a)Securities include deferred tax assets related to available-for-sale securities, held-to-maturity securities, and equity securities. At December 31, 2023, and 2022, there were $808 million and $1.0 billion of deferred tax assets related to available-for-sale securities, respectively.

(b)Primarily the result of switching from 100% bonus depreciation to MACRS depreciation for 2022 operating lease originations at the filing of the 2022 tax return.

(c)The valuation allowance decreased $468 million to $176 million at December 31, 2023, as a result of a $359 million reduction related to the expiration of foreign tax credit carryforwards, as well as a $109 million release of valuation allowance predominantly related to the identification and execution of a tax planning strategy.

(d)Amounts include $1.2 billion and $1.1 billion 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 $10 million and $16 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, 2023, and 2022, respectively.

Schedule of Valuation Allowance

The following table summarizes net deferred tax assets including related valuation allowances at December 31, 2023.

($ in millions)	Deferred tax asset			Valuation allowance		Net deferred tax asset		Years of expiration
Tax credit carryforwards
General business credits	$	236		$	—	$	236	2042–2043
Foreign tax credits	136			(41)		95		2024–2033
CAMT credits	128			—		128		Indefinite
Total tax credit carryforwards	500			(41)		459
Tax loss carryforwards
Net operating losses — state	171		(a)	(135)		36		2024–Indefinite
Net operating losses — federal	8			—		8		2028–Indefinite
Total U.S. federal and state tax loss carryforwards	179			(135)		44
Other net deferred tax assets	710			—		710		n/a
Net deferred tax assets (liabilities)	$	1,389		$	(176)	$	1,213

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)	2023		2022		2021
Balance at January 1,	$	46	$	53	$	53
Additions based on tax positions related to the current year	—		—		—
Additions for tax positions of prior years	48		2		7
Reductions for tax positions of prior years	(2)		(2)		(7)
Settlements	(1)		(7)		—
Expiration of statute of limitations	—		—		—
Balance at December 31,	$	91	$	46	$	53