Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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)	2024		2023		2022
Current income tax expense
U.S. federal	$	107	$	85	$	1
Foreign	6		5		3
State and local	26		36		9
Total current expense	139		126		13
Deferred income tax expense (benefit)
U.S. federal	53		26		493
Foreign	1		(1)		(1)
State and local	(26)		(7)		61
Total deferred expense (benefit)	28		18		553
Other tax expense (a)	—		—		61
Total income tax expense from continuing operations	$	167	$	144	$	627

(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)	2024		2023		2022
Statutory U.S. federal tax expense	$	175	$	232	$	492
Change in tax resulting from
Nondeductible expenses	53		44		31
Tax credits, excluding expirations	(49)		(55)		(73)
State and local income taxes, net of federal income tax benefit	30		(4)		77
Valuation allowance change, excluding expirations	(28)		(91)		54
Unrecognized tax benefits	(11)		38		(4)
Tax law enactment	—		(18)		—
Settlement of qualified defined benefit pension plan	—		—		61
Other, net	(3)		(2)		(11)
Total income tax expense from continuing operations	$	167	$	144	$	627

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)	2024		2023
Deferred tax assets
Adjustments to securities and hedging transactions (a)	$	1,080	$	1,066
Tax credit carryforwards	679		506
Adjustments to loan value	420		569
State and local taxes	301		305
Fixed assets	257		165
Other	454		426
Gross deferred tax assets	3,191		3,037
Valuation allowance	(138)		(176)
Deferred tax assets, net of valuation allowance	3,053		2,861
Deferred tax liabilities
Lease transactions	653		1,117
Deferred acquisition costs	380		387
Long-term debt	62		64
Other	52		57
Gross deferred tax liabilities	1,147		1,625
Net deferred tax assets (b)	$	1,906	$	1,236

(a)Securities include deferred tax assets related to available-for-sale securities, held-to-maturity securities, and equity securities. At December 31, 2024, and 2023, there were $882 million and $808 million of deferred tax assets related to available-for-sale securities, respectively.

(b)Amounts include $1.9 billion and $1.2 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 included in accrued expenses and other liabilities on our Consolidated Balance Sheet for tax jurisdictions in a total net deferred tax liability position at both December 31, 2024, and 2023.

Schedule of Valuation Allowance

The following table summarizes net deferred tax assets including related valuation allowances at December 31, 2024.

($ in millions)	Deferred tax asset			Valuation allowance		Net deferred tax asset		Years of expiration
Tax credit carryforwards
General business credits	$	611		$	—	$	611	2044
Foreign tax credits	68			(27)		41		2025–2034
Total tax credit carryforwards	679			(27)		652
Tax loss carryforwards
Net operating losses — state	128		(a)	(111)		17		2025–Indefinite
Net operating losses — federal	7			—		7		2028–Indefinite
Total U.S. federal and state tax loss carryforwards	135			(111)		24
Other net deferred tax assets	1,230			—		1,230		n/a
Net deferred tax assets	$	2,044		$	(138)	$	1,906

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)	2024		2023		2022
Balance at January 1,	$	91	$	46	$	53
Additions based on tax positions related to the current year	—		—		—
Additions for tax positions of prior years	6		48		2
Reductions for tax positions of prior years	(20)		(2)		(2)
Settlements	—		(1)		(7)
Expiration of statute of limitations	—		—		—
Balance at December 31,	$	77	$	91	$	46