Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes Included in Income Statement

Income taxes included in the income statement are summarized below. We file a consolidated federal income tax return.

Year ended December 31, in millions	2014			2013			2012
Currently payable:
Federal	$	288		$	216		$	178
State		33			26			18
Total currently payable		321			242			196
Deferred:
Federal		16			39			41
State		(11	)		(10	)		(6	)
Total deferred		5			29			35
Total income tax (benefit) expense (a)	$	326		$	271		$	231

(a) There was no income tax (benefit) expense recorded on securities transactions in 2014 and 2012. The income tax (benefit) expense on securities transactions totaled $1 million in 2013. Income tax expense excludes equity- and gross receipts-based taxes, which are assessed in lieu of an income tax in certain states in which we operate. These taxes, which are recorded in “noninterest expense” on the income statement, totaled $17 million in 2014, $23 million in 2013, and $29 million in 2012.

Significant Components of Deferred Tax Assets and Liabilities Included in "Accrued Income and Other Assets" and "Accrued Expense and Other Liabilities"

Significant components of our deferred tax assets and liabilities included in “accrued income and other assets” and “accrued expense and other liabilities,” respectively, on the balance sheet, are as follows:

December 31, in millions	2014		2013
Allowance for loan and lease losses	$	316	$	334
Employee benefits		251		187
Net unrealized securities losses		17		45
Federal credit carryforwards		96		226
State net operating losses and credits		9		11
Other		312		302
Gross deferred tax assets		1,001		1,105
Less: valuation allowance		—		1
Total deferred tax assets		1,001		1,104
Leasing transactions		682		753
Other		125		141
Total deferred tax liabilities		807		894
Net deferred tax assets (liabilities) (a)	$	194	$	210

(a) From continuing operations

Total Income Tax Expense (Benefit) and Resulting Effective Tax Rate

The following table shows how our total income tax expense (benefit) and the resulting effective tax rate were derived:

Year ended December 31, dollars in millions	2014					2013					2012
	Amount		Rate			Amount		Rate			Amount		Rate
Income (loss) before income taxes times 35% statutory federal tax rate	$	445		35.0	%	$	399		35.0	%	$	376		35.0	%
Amortization of tax-advantaged investments		69		5.4			63		5.5			64		6.0
Foreign tax adjustments		10		.8			(4)		(.3)			1		.1
Reduced tax rate on lease financing income		(3)		(.2)			(13)		(1.2)			(50)		(4.7)
Tax-exempt interest income		(16)		(1.3)			(15)		(1.3)			(16)		(1.5)
Corporate-owned life insurance income		(41)		(3.2)			(42)		(3.7)			(43)		(4.0)
Interest refund (net of federal tax benefit)		(1)		(.1)			(1)		(.1)			—		—
State income tax, net of federal tax benefit		15		1.1			10		.9			8		.7
Tax credits		(134)		(10.5)			(130)		(11.4)			(119)		(11.1)
Other		(18)		(1.4)			4		.3			10		.9
Total income tax expense (benefit)	$	326		25.6	%	$	271		23.7	%	$	231		21.4	%

Change in Liability for Unrecognized Tax Benefits

The change in our liability for unrecognized tax benefits is as follows:

Year ended December 31, in millions	2014		2013
Balance at beginning of year	$	6	$	7
Decrease related to other settlements with taxing authorities		—		(1)
Balance at end of year	$	6	$	6