Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Reconciliation of Total Provision for Income Taxes with Amounts Computed at Federal Tax Rate of 35%

The following table reconciles the total provision for income taxes recorded in the consolidated statements of income with the amounts computed at the statutory federal tax rate of 35%.

TABLE 83: INCOME TAXES



	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2015			2014			2013
Tax at Statutory Rate	$	512.7		$	416.6		$	376.4
Tax Exempt Income	(4.8		)	(4.9		)	(6.2		)
Leveraged Lease Adjustments	0.1			(3.4		)	(2.3		)
Foreign Tax Rate Differential	(44.2		)	(44.1		)	(27.6		)
State Taxes, net	33.0			29.6			26.3
Other	(5.6		)	(15.4		)	(22.4		)

Provision for Income Taxes	$	491.2		$	378.4		$	344.2

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

TABLE 84: UNRECOGNIZED TAX BENEFITS



(In Millions)	2015			2014
Balance at January 1	$	11.9		$	15.6
Additions for Tax Positions Taken in Prior Years	3.9			3.0
Reductions for Tax Positions Taken in Prior Years	(2.7		)	(5.5		)
Reductions Resulting from Expiration of Statutes	(0.8		)	(1.2		)

Balance at December 31,	$	12.3		$	11.9

Components of Consolidated Provision for Income Taxes

The components of the consolidated provision for income taxes for each of the three years ended December 31 are as follows:

TABLE 85: PROVISION FOR INCOME TAXES



	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2015			2014			2013
Current Tax Provision:
Federal	$	489.8		$	291.5		$	185.6
State	64.5			47.2			24.6
Non-U.S.	83.1			76.1			67.4

Total	637.4			414.8			277.6
Deferred Tax Provision:
Federal	(131.1		)	(31.1		)	$	53.9
State	(13.6		)	(1.6		)	14.1
Non-U.S.	(1.5		)	(3.7		)	(1.4		)

Total	(146.2		)	(36.4		)	66.6

Provision for Income Taxes	$	491.2		$	378.4		$	344.2

Tax Charges (Benefits) Recorded Directly to Stockholders' Equity

In addition to the amounts shown above, tax charges and benefits have been recorded directly to stockholders’ equity for the following items:

TABLE 86: TAX CHARGES AND BENEFITS RECORDED DIRECTLY TO STOCKHOLDERS’ EQUITY



	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2015		2014		2013
Current Tax Benefit for Employee Stock Options and Other Stock-Based Plans	$	17.7	$	8.8	$	3.0
Tax Effect of Other Comprehensive Income	17.0		18.6		4.3

Deferred Tax Liabilities and Assets

Deferred tax liabilities and assets have been computed as follows:

TABLE 87: DEFERRED TAX LIABILITIES



	DECEMBER 31,
(In Millions)	2015			2014			2013
Deferred Tax Liabilities:
Lease Financing	$	272.6		$	388.6		$	392.0
Software Development	339.9			316.1			299.0
Accumulated Depreciation	20.6			24.1			22.0
Compensation and Benefits	70.7			63.5			112.2
State Taxes, net	48.8			62.3			63.3
Other Liabilities	169.1			157.5			104.0

Gross Deferred Tax Liabilities	921.7			1,012.1			992.5

Deferred Tax Assets:
Allowance for Credit Losses	81.7			103.5			107.8
Other Assets	185.0			126.7			85.0

Gross Deferred Tax Assets	266.7			230.2			192.8

Valuation Reserve	(1.6		)	(3.9		)	(3.9		)
Deferred Tax Assets, net of Valuation Reserve	265.1			226.3			188.9

Net Deferred Tax Liabilities	$	656.6		$	785.8		$	803.6