Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

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 statement of income with the amounts computed at the statutory federal tax rate of 35%.

(In Millions)	2013			2012			2011
Tax at Statutory Rate	$	376.4		$	347.3		$	309.3
Tax Exempt Income		(6.2	)		(8.0	)		(9.9	)
Leveraged Lease Adjustments		(2.3	)		(12.0	)		(4.7	)
Foreign Tax Rate Differential		(27.6	)		(27.1	)		(21.3	)
State Taxes, net		26.3			20.4			22.8
Other		(22.4	)		(15.6	)		(16.1	)
Provision for Income Taxes	$	344.2		$	305.0		$	280.1

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:

(In Millions)	2013			2012
Balance at January 1	$	19.4		$	17.8
Additions for Tax Positions Taken in Prior Years		2.4			4.6
Reductions for Tax Positions Taken in Prior Years		(4.4	)		(1.2	)
Reductions Resulting from Expiration of Statutes		(1.8	)		(1.8	)
Balance at December 31	$	15.6		$	19.4

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:

(In Millions)	2013			2012		2011
Current Tax Provision:
Federal	$	185.6		$	140.5	$	113.6
State		24.6			21.4		15.1
Non-U.S.		67.4			63.4		54.2
Total		277.6		$	225.3	$	182.9
Deferred Tax Provision:
Federal		53.9		$	66.0	$	84.0
State		14.1			10.6		11.3
Non-U.S.		(1.4	)		3.1		1.9
Total		66.6			79.7		97.2
Provision for Income Taxes	$	344.2		$	305.0	$	280.1

Tax Charges (Benefits) Recorded Directly to Stockholders' Equity

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

(In Millions)	2013		2012		2011
Current Tax Benefit for Employee Stock Options and Other Stock-Based Plans	$	3.0	$	2.3	$	0.6
Tax Effect of Other Comprehensive Income		4.3		18.7		(5.2	)

Deferred Tax Liabilities and Assets

Deferred tax liabilities and assets have been computed as follows:

	DECEMBER 31,
(In Millions)	2013		2012		2011
Deferred Tax Liabilities:
Lease Financing	$	392.0	$	409.1	$	398.2
Software Development		299.0		277.8		254.9
Accumulated Depreciation		22.0		19.7		48.6
Compensation and Benefits		112.2		29.7		7.1
State Taxes, net		63.3		54.7		52.4
Other Liabilities		104.0		170.9		137.6
Gross Deferred Tax Liabilities		992.5		961.9		898.8
Deferred Tax Assets:
Allowance for Credit Losses		107.8		114.7		114.5
Other Assets		81.1		114.5		150.0
Gross Deferred Tax Assets		188.9		229.2		264.5
Valuation Reserve		–		–		–
Deferred Tax Assets, net of Valuation Reserve		188.9		229.2		264.5
Net Deferred Tax Liabilities	$	803.6	$	732.7	$	634.3