Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Summary of Income (Loss) Before Income Taxes

The following table summarizes income before income taxes and equity income:

	Years Ended December 31,
	2019		2018		2017
U.S. income	$	1,599	$	1,421	$	710
Non-U.S. income	339		289		313
Income before income taxes and equity income	$	1,938	$	1,710	$	1,023

Summary of Income Tax Expense (Benefit)

Income Tax Expense	Years Ended December 31,
	2019		2018		2017
Current income tax expense
U.S. state and local	$	16	$	1	$	(4	)
Non-U.S.	81		83		73
Total current	97		84		69
Deferred income tax expense
U.S. federal	330		133		(16		)
U.S. state and local	71		75		31
Non-U.S.	39		31		27
Total deferred	440		239		42
Total income tax provision	$	537	$	323	$	111

Effective Income Tax Rate Reconciliation

reconciliation between the U.S. federal statutory tax rate and the effective tax rate is as follows:

	Years Ended December 31,
	2019		2018		2017
U.S. federal statutory tax rate	21.0	%	21.0	%	35.0	%
Non-U.S. income taxed at other than the U.S. federal statutory rate	2.1		2.8		(0.1	)
State and local income taxes	4.0		4.2		3.5
U.S. tax on non-U.S. earnings	1.1		0.2		7.3
Valuation allowance	0.5		0.4		1.1
Tax credits and incentives	(0.7	)	(6.2	)	(11.2	)
U.S. federal tax reform impact	—		(2.6	)	(23.4	)
Other	(0.3	)	(0.9	)	(1.3	)
Effective tax rate	27.7	%	18.9	%	10.9	%

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:

	December 31, 2019			December 31, 2018
Deferred tax assets
Net operating loss carryforward - U.S.(a)	$	371		$	968
Net operating loss carryforward - non-U.S.(b)	178			167
Market value difference of loan portfolio	310			23
Accruals	115			104
Tax credits(c)	839			806
Other	185			151
Total deferred tax assets before valuation allowance	1,998			2,219
Less: valuation allowance	(279		)	(270		)
Total deferred tax assets	1,719			1,949
Deferred tax liabilities
Depreciable assets	2,177			2,020
Deferred acquisition costs	123			134
Other	152			103
Total deferred tax liabilities	2,452			2,257
Net deferred tax liability	$	(733	)	$	(308	)

_________________

(a) Includes tax-effected operating losses of $339 million expiring through 2039 and $32 million that may be carried forward indefinitely at December 31, 2019.

(b) Includes tax-effected operating losses of $142 million expiring through 2039 and $36 million that may be carried forward indefinitely at December 31, 2019.

(c) Includes tax credits of $839 million expiring through 2039 at December 31, 2019.

Summary of Unrecognized Tax Benefits Activity

Uncertain Tax Positions	Years Ended December 31,
	2019			2018			2017
Beginning balance	$	50		$	54		$	56
Additions to prior years' tax positions	1			—			—
Reductions to prior years' tax positions	—			—			(1		)
Additions to current year tax positions	7			3			4
Reductions in tax positions due to lapse of statutory limitations	(1		)	(5		)	(5		)
Foreign currency translation	—			(2		)	—
Ending balance	$	57		$	50		$	54