Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Significant Components of Provision for Income Taxes Attributable to Continuing Operations

The following table presents significant components of the provision for income taxes attributable to continuing operations:

Table16.1: Significant Components of the Provision for Income Taxes Attributable to Continuing Operations

	Year Ended December 31,
(Dollars in millions)	2017			2016			2015
Current income tax provision:
Federal taxes	$	1,585		$	2,087		$	1,991
State taxes	223			209			207
International taxes	133			104			73
Total current provision	$	1,941		$	2,400		$	2,271
Deferred income tax provision (benefit):
Federal taxes	$	1,509		$	(621	)	$	(368	)
State taxes	(69		)	(63		)	(39		)
International taxes	(6		)	(2		)	5
Total deferred provision (benefit)	1,434			(686		)	(402		)
Total income tax provision	$	3,375		$	1,714		$	1,869

Schedule of Effective Income Tax Rate

The following table presents the reconciliation of the U.S. federal statutory income tax rate to effective income tax rate applicable to income from continuing operations for the years ended December 31, 2017, 2016 and 2015:

Table 16.2: Effective Income Tax Rate

	Year Ended December 31,
	2017		2016		2015
Income tax at U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%
Impacts of the Tax Act	32.2		N/A		N/A
State taxes, net of federal benefit	2.2		1.9		1.9
Low-income housing, new markets and other tax credits	(5.8	)	(4.9	)	(4.0	)
Tax-exempt interest and other nontaxable income	(1.5	)	(1.4	)	(1.3	)
Other, net	(0.6	)	0.7		0.2
Effective income tax rate	61.5	%	31.3	%	31.8	%

Schedule of Significant Components of Deferred Tax Assets and Liabilities

The following table presents significant components of our deferred tax assets and liabilities as of December 31, 2017 and 2016. The valuation allowance below represents the adjustment of certain state deferred tax assets and net operating loss carryforwards to the amount we have determined is more likely than not to be realized.

Table 16.3: Significant Components of Deferred Tax Assets and Liabilities

(Dollars in millions)	December 31, 2017			December 31, 2016
Deferred tax assets:
Allowance for loan and lease losses	$	1,768		$	2,350
Rewards programs	936			1,348
Security and loan valuations	424			869
Net operating loss and tax credit carryforwards	244			188
Compensation and employee benefits	208			276
Goodwill and intangibles	201			294
Unearned income	130			186
Net unrealized losses on derivatives	104			35
Representation and warranty reserve	8			234
Other assets	278			270
Subtotal	4,301			6,050
Valuation allowance	(226		)	(179		)
Total deferred tax assets	4,075			5,871

(Dollars in millions)	December 31, 2017		December 31, 2016
Deferred tax liabilities:
Original issue discount	703		1,012
Fixed assets and leases	168		221
Loan fees and expenses	68		84
Mortgage servicing rights	57		67
Other liabilities	215		177
Total deferred tax liabilities	1,211		1,561
Net deferred tax assets	$	2,864	$	4,310

Schedule of Reconciliation of Change in Unrecognized Tax Benefits

The following table presents the accrued balance of tax, interest and penalties related to unrecognized tax benefits:

Table 16.4: Reconciliation of the Change in Unrecognized Tax Benefits

(Dollars in millions)	Gross Unrecognized Tax Benefits			Accrued Interest and Penalties			Gross Tax, Interest and Penalties
Balance as of January 1, 2015	$	107		$	36		$	143
Additions for tax positions related to prior years	38			8			46
Reductions for tax positions related to prior years due to IRS and other settlements	(15		)	(11		)	(26		)
Balance as of December 31, 2015	130			33			163
Additions for tax positions related to prior years	0			6			6
Reductions for tax positions related to prior years due to IRS and other settlements	(45		)	(15		)	(60		)
Balance as of December 31, 2016	85			24			109
Additions for tax positions related to prior years	5			7			12
Reductions for tax positions related to prior years due to IRS and other settlements	(4		)	(2		)	(6		)
Balance as of December 31, 2017	$	86		$	29		$	115
Portion of balance at December 31, 2017 that, if recognized, would impact the effective income tax rate	$	68		$	23		$	91