Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Summary of Income (Loss) Before Income Taxes

The following table summarizes income before income taxes and equity income (in millions):



	Years Ended December 31,
	2015		2014		2013
U.S. income	$	362	$	481	$	637
Non-U.S. income	359		334		246
Income before income taxes and equity income	$	721	$	815	$	883

Summary of Income Tax Expense (Benefit)

The following table summarizes income tax expense (in millions):



	Years Ended December 31,
	2015			2014			2013
Current income tax expense
U.S. federal	$	13		$	284		$	67
U.S. state and local	(5		)	14			5
Non-U.S.	51			63			66
Total current	59			361			138
Deferred income tax expense
U.S. federal	95			(87		)	176
U.S. state and local	6			(5		)	7
Non-U.S.	31			9			(4		)
Total deferred	132			(83		)	179
Total income tax provision	$	191		$	278		$	317

Effective Income Tax Rate Reconciliation

The following table summarizes a reconciliation of income tax expense (benefit) compared with the amounts at the U.S. federal statutory income tax rate:



	Years Ended December 31,
	2015		2014		2013
U.S. statutory tax rate	35.0	%	35.0	%	35.0	%
Non-U.S. income taxed at other than 35%	(3.2	)	(2.2	)	(1.7	)
State and local income taxes	0.9		1.2		1.1
U.S. tax on non-U.S. earnings	(3.2	)	7.2		(1.7	)
Valuation allowance	7.1		(4.9	)	3.4
Tax credits and incentives	(6.6	)	(0.8	)	—
Other	(3.5	)	(1.5	)	(0.2	)
Effective tax rate	26.5	%	34.0	%	35.9	%

Schedule of Deferred Tax Assets and Liabilities

The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities (in millions):



	December 31, 2015			December 31, 2014
Deferred tax assets:
Net operating loss carryforward - U.S.^(a)	$	409		$	6
Net operating loss carryforward - Non-U.S.^(b)	189			199
Market value difference of loan portfolio	166			349
Accruals	107			157
Tax Credits^(c)	131			2
Other	113			147
Total deferred tax assets before valuation allowance	1,115			860
Less: valuation allowance	(104		)	(57		)
Total deferred tax assets	1,011			803
Deferred tax liabilities:
Depreciable assets	645			300
Intangible assets	34			35
Accrued commissions	27			41
Deferred acquisition costs/revenue	116			50
Tax on unremitted earnings of non-U.S. entities	47			—
Other	40			56
Total deferred tax liabilities	909			482
Net deferred tax asset	$	102		$	321

_________________


(a)	Includes tax-effected operating losses of $409 million expiring through 2036 at December 31, 2015.


(b)	Includes tax-effected operating losses of $84 million expiring through 2032 and $105 million that may be carried forward indefinitely at December 31, 2015.


(c)	Includes tax credits of $131 million expiring through 2036 at December 31, 2015.

Summary of Unrecognized Tax Benefits Activity

The following table summarizes activity of unrecognized tax benefits (in millions):



	Years Ended December 31,
	2015			2014			2013
Beginning balance	$	95		$	130		$	53
International operations acquired amounts	—			—			71
Additions to prior years' tax positions	—			1			—
Reductions to prior years' tax positions	(7		)	(12		)	(1		)
Additions to current year tax positions	1			7			12
Reductions in tax positions due to lapse of statutory limitations	(16		)	(6		)	(3		)
Settlements	(2		)	(20		)	(1		)
Foreign currency translation	(10		)	(5		)	(1		)
Ending balance	$	61		$	95		$	130