Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the components of income tax expense for the years ended December 31:



(In millions)	2015			2014		2013
Current:
Federal	$	52		$	59	$	193
State	92			39		47
Non-U.S.	342			257		248
Total current expense	486			355		488
Deferred:
Federal	(39		)	38		95
State	40			10		31
Non-U.S.	(169		)	12		2
Total deferred (benefit) expense	(168		)	60		128
Total income tax expense	$	318		$	415	$	616

Schedule of Deferred Tax Assets and Liabilities

The following table presents significant components of our gross deferred tax assets and gross deferred tax liabilities as of December 31:



(In millions)	2015			2014
Deferred tax assets:
Unrealized losses on investment securities, net	$	57		$	—
Deferred compensation	167			168
Defined benefit pension plan	143			193
Restructuring charges and other reserves	363			237
Foreign currency translation	155			56
Real estate	20			9
Other	32			68
Total deferred tax assets	937			731
Valuation allowance for deferred tax assets	(27		)	(54		)
Deferred tax assets, net of valuation allowance	$	910		$	677
Deferred tax liabilities:
Unrealized gains on securities, net	$	—		$	5
Leveraged lease financing	334			326
Fixed and intangible assets	804			1,006
Non-U.S. earnings	265			167
Other	121			83
Total deferred tax liabilities	$	1,524		$	1,587

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of the U.S. statutory income tax rate to our effective tax rate based on income before income tax expense for the years ended December 31:



	2015		2014		2013
U.S. federal income tax rate	35.0	%	35.0	%	35.0	%
Changes from statutory rate:
State taxes, net of federal benefit	4.2		1.5		1.6
Tax-exempt income	(5.6	)	(5.1	)	(3.7	)
Tax credits	(9.4	)	(6.8	)	(3.6	)
Foreign tax differential	(9.6	)	(8.5	)	(5.9	)
Tax Refund	(2.8	)	—		—
Litigation Expense	2.7		1.3		—
Other, net	(0.7	)	(0.3	)	(0.3	)
Effective tax rate	13.8	%	17.1	%	23.1	%

Summary of Income Tax Contingencies

The following table presents activity related to unrecognized tax benefits as of December 31:



(In millions)	2015			2014
Beginning balance	$	163		$	158
Decrease related to agreements with tax authorities	(122		)	(9		)
Increase related to tax positions taken during current year	8			8
Increase related to tax positions taken during prior year	14			6
Ending balance	$	63		$	163