Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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 85: INCOME TAXES



	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2016			2015			2014
Tax at Statutory Rate	$	531.0		$	512.7		$	416.6
Tax Exempt Income	(7.2		)	(4.8		)	(4.9		)
Leveraged Lease Adjustments	0.2			0.1			(3.4		)
Foreign Tax Rate Differential	(50.9		)	(44.2		)	(44.1		)
State Taxes, net	30.0			33.0			29.6
Other	(18.5		)	(5.6		)	(15.4		)

Provision for Income Taxes	$	484.6		$	491.2		$	378.4

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 86: UNRECOGNIZED TAX BENEFITS



(In Millions)	2016			2015
Balance at January 1	$	12.3		$	11.9
Additions for Tax Positions Taken in Prior Years	6.6			3.9
Reductions for Tax Positions Taken in Prior Years	(1.2		)	(2.7		)
Reductions Resulting from Expiration of Statutes	(0.5		)	(0.8		)

Balance at December 31,	$	17.2		$	12.3

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 87: PROVISION FOR INCOME TAXES



	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2016			2015			2014
Current Tax Provision:
Federal	$	495.8		$	489.8		$	291.5
State	65.3			64.5			47.2
Non-U.S.	99.3			83.1			76.1

Total	660.4			637.4			414.8
Deferred Tax Provision:
Federal	(159.0		)	(131.1		)	$	(31.1	)
State	(18.9		)	(13.6		)	(1.6		)
Non-U.S.	2.1			(1.5		)	(3.7		)

Total	(175.8		)	(146.2		)	(36.4		)

Provision for Income Taxes	$	484.6		$	491.2		$	378.4

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:

TABLE 88: TAX CHARGES AND BENEFITS RECORDED DIRECTLY TO STOCKHOLDERS’ EQUITY



	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2016			2015		2014
Current Tax Benefit (Charge) for Employee Stock Options and Other Stock-Based Plans	$	(7.6	)	$	17.7	$	8.8
Tax Effect of Other Comprehensive Income	72.4			17.0		18.6

Deferred Tax Liabilities and Assets

Deferred tax liabilities and assets have been computed as follows:

TABLE 89: NET DEFERRED TAX LIABILITIES



	DECEMBER 31,
(In Millions)	2016			2015			2014
Deferred Tax Liabilities:
Lease Financing	$	148.7		$	272.6		$	388.6
Software Development	352.0			339.9			316.1
Accumulated Depreciation	26.0			20.6			24.1
Compensation and Benefits	50.2			70.7			63.5
State Taxes, net	33.3			48.8			62.3
Other Liabilities	243.1			169.1			157.5

Gross Deferred Tax Liabilities	853.3			921.7			1,012.1

Deferred Tax Assets:
Allowance for Credit Losses	67.2			81.7			103.5
Other Assets	233.8			185.0			126.7

Gross Deferred Tax Assets	301.0			266.7			230.2

Valuation Reserve	(0.9		)	(1.6		)	(3.9		)
Deferred Tax Assets, net of Valuation Reserve	300.1			265.1			226.3

Net Deferred Tax Liabilities	$	553.2		$	656.6		$	785.8