Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Table Text Block [Abstract]

Components of income tax expense

The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows:

(Millions)				2014		2013		2012
Current income tax expense:
	U.S. federal		$	2,136	$	1,730	$	982
	U.S. state and local			264		288		189
	Non-U.S.			412		514		445
		Total current income tax expense		2,812		2,532		1,616
Deferred income tax expense (benefit):
	U.S. federal			352		113		359
	U.S. state and local			39		4		39
	Non-U.S.			(97)		(120)		(45)
		Total deferred income tax expense		294		(3)		353
Total income tax expense			$	3,106	$	2,529	$	1,969

Effective income tax rate

A reconciliation of the U.S. federal statutory rate of 35% percent to the Company’s actual income tax rate for the years ended December 31 on continuing operations was as follows:

			2014		2013		2012
U.S. statutory federal income tax rate			35.0	%	35.0	%	35.0	%
(Decrease) increase in taxes resulting from:
	Tax-exempt income		(1.5)		(1.6)		(1.6)
	State and local income taxes, net of federal benefit		2.7		3.1		2.5
	Non-U.S. subsidiaries earnings(a)		(2.2)		(2.8)		(5.2)
	Tax settlements(b)		(0.5)		(1.9)		(0.2)
	All other		1.0		0.3		―
		Actual tax rates(a)	34.5	%	32.1	%	30.5	%

• Results for all years primarily included tax benefits associated with the undistributed earnings of certain non-U.S. subsidiaries that were deemed to be reinvested indefinitely.In addition, 2012includedtax benefits of $146 million, which decreased the actual tax rates by 2.3 percent related to the realization of certain foreign tax credits.
• Relates to the resolution of tax matters in various jurisdictions.

Components of deferred tax assets and liabilities

The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table:

(Millions)				2014		2013
Deferred tax assets:
	Reserves not yet deducted for tax purposes		$	3,926	$	3,813
	Employee compensation and benefits			789		721
	Other			266		546
		Gross deferred tax assets		4,981		5,080
		Valuation allowance		(75)		(121)
		Deferred tax assets after valuation allowance		4,906		4,959
Deferred tax liabilities:
	Intangibles and fixed assets			1,597		1,465
	Deferred revenue			498		453
	Deferred interest			350		363
	Asset securitization			162		130
	Investment in joint ventures			223		10
	Other			62		95
		Gross deferred tax liabilities		2,892		2,516
Net deferred tax assets			$	2,014	$	2,443

Changes in unrecognized tax benefits

The following table presents changes in unrecognized tax benefits:

(Millions)			2014		2013		2012
Balance, January 1		$	1,044	$	1,230	$	1,223
Increases:
	Current year tax positions		4		124		51
	Tax positions related to prior years		111		176		64
Decreases:
	Tax positions related to prior years		(181)		(371)		(44)
	Settlements with tax authorities		(67)		(94)		(25)
	Lapse of statute of limitations		(1)		(21)		(37)
	Effects of foreign currency translations		(1)		―		(2)
Balance, December 31		$	909	$	1,044	$	1,230