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Income Taxes (Tables)
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12 Months Ended |
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Dec. 31, 2011
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| Income Taxes [Abstract] |
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| Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] |
The components of income tax expense (benefit) for 2011, 2010 and 2009 were as presented in the table below.
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Income Tax Expense (Benefit) |
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(Dollars in millions) |
2011 |
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2010 |
|
2009 |
Current income tax expense (benefit) |
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U.S. federal |
$ |
(733 |
) |
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$ |
(666 |
) |
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$ |
(3,576 |
) |
U.S. state and local |
393 |
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158 |
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|
555 |
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Non-U.S. |
613 |
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815 |
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|
735 |
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Total current expense (benefit) |
273 |
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|
307 |
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(2,286 |
) |
Deferred income tax expense (benefit) |
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U.S. federal |
(2,673 |
) |
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(287 |
) |
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792 |
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U.S. state and local |
(584 |
) |
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201 |
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(620 |
) |
Non-U.S. |
1,308 |
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694 |
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198 |
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Total deferred expense (benefit) |
(1,949 |
) |
|
608 |
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|
370 |
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Total income tax expense (benefit) |
$ |
(1,676 |
) |
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$ |
915 |
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$ |
(1,916 |
) |
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| Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] |
A reconciliation between the expected U.S. federal income tax expense using the federal statutory tax rate of 35 percent to the Corporation’s actual income tax expense (benefit) and resulting effective tax rate for 2011, 2010 and 2009 is presented in the Reconciliation of Income Tax Expense (Benefit) table.
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Reconciliation of Income Tax Expense (Benefit) |
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2011 |
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2010 |
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2009 |
(Dollars in millions) |
Amount |
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Percent |
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Amount |
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Percent |
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Amount |
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Percent |
Expected U.S. federal income tax expense (benefit) |
$ |
(81 |
) |
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35.0 |
% |
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$ |
(463 |
) |
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35.0 |
% |
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$ |
1,526 |
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|
35.0 |
% |
Increase (decrease) in taxes resulting from: |
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(10 |
)% |
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State tax expense (benefit), net of federal effect |
(124 |
) |
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233 |
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(17.6 |
) |
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(42 |
) |
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(1.0 |
) |
Change in federal and non-U.S. valuation allowances |
(1,102 |
) |
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(1,657 |
) |
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125.4 |
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(650 |
) |
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(14.9 |
) |
Subsidiary sales and liquidations |
(823 |
) |
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— |
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— |
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(595 |
) |
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(13.7 |
) |
Low-income housing credits/other credits |
(800 |
) |
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(732 |
) |
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55.4 |
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(668 |
) |
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(15.3 |
) |
Tax-exempt income, including dividends |
(614 |
) |
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(981 |
) |
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74.2 |
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(863 |
) |
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(19.8 |
) |
Non-U.S. tax differential |
(383 |
) |
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(190 |
) |
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14.4 |
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(709 |
) |
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(16.3 |
) |
Changes in prior period UTBs (including interest) |
(239 |
) |
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(349 |
) |
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26.4 |
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87 |
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2.0 |
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Goodwill - impairment and other |
1,420 |
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4,508 |
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(341.0 |
) |
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— |
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— |
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Non-U.S. statutory rate reductions |
860 |
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392 |
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(29.7 |
) |
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— |
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— |
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Leveraged lease tax differential |
121 |
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98 |
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(7.4 |
) |
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59 |
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1.4 |
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Nondeductible expenses |
119 |
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99 |
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(7.5 |
) |
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69 |
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1.6 |
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Other |
(30 |
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(43 |
) |
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3.2 |
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(130 |
) |
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(3.0 |
) |
Total income tax expense (benefit) |
$ |
(1,676 |
) |
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n/m |
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$ |
915 |
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(69.2 |
)% |
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$ |
(1,916 |
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(44.0 |
)% |
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| Reconciliation of Change in Unrecognized Tax Benefits [Table Text Block] |
The reconciliation of the beginning unrecognized tax benefits (UTB) balance to the ending balance is presented in the table below.
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Reconciliation of the Change in Unrecognized Tax Benefits |
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(Dollars in millions) |
2011 |
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2010 |
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2009 |
Beginning balance |
$ |
5,169 |
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$ |
5,253 |
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$ |
3,541 |
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Increases related to positions taken during the current year |
219 |
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172 |
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181 |
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Positions acquired or assumed in business combinations |
— |
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— |
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1,924 |
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Increases related to positions taken during prior years (1)
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879 |
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755 |
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791 |
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Decreases related to positions taken during prior years (1)
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(1,669 |
) |
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(657 |
) |
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(554 |
) |
Settlements |
(277 |
) |
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(305 |
) |
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(615 |
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Expiration of statute of limitations |
(118 |
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(49 |
) |
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(15 |
) |
Ending balance |
$ |
4,203 |
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$ |
5,169 |
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$ |
5,253 |
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(1) |
The sum per year of positions taken during prior years differs from the $(239) million, $(349) million and $87 million in the Reconciliation of Income Tax Expense (Benefit) table due to temporary items and jurisdictional offsets, as well as the inclusion of interest in the Reconciliation of Income Tax Expense (Benefit) table.
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| Summary of Income Tax Examinations [Table Text Block] |
The Tax Examination Status table summarizes the status of significant examinations (U.S. federal unless otherwise noted) for the Corporation and various acquired subsidiaries as of December 31, 2011.
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Tax Examination Status |
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Years under
Examination (1)
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Status at
December 31,
2011
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Bank of America Corporation – U.S. |
2001 – 2009 |
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See below |
Bank of America Corporation – New York |
1999 – 2003 |
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Field examination |
Merrill Lynch – U.S. |
2004 -- 2008 |
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See below |
Various – U.K. |
2007 -- 2009 |
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Field examination |
Fleet Boston – U.S. |
2001 – 2004 |
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In Appeals process |
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(1) |
All tax years subsequent to the years shown remain open to examination. |
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| Schedule of Deferred Tax Assets and Liabilities [Table Text Block] |
Significant components of the Corporation’s net deferred tax assets and liabilities at December 31, 2011 and 2010 are presented in the Deferred Tax Assets and Liabilities table.
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Deferred Tax Assets and Liabilities |
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December 31 |
(Dollars in millions) |
2011 |
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2010 |
Deferred tax assets |
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Net operating loss (NOL) carryforwards |
$ |
14,307 |
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$ |
18,732 |
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Allowance for credit losses |
11,824 |
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14,659 |
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Accrued expenses |
8,340 |
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3,550 |
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Employee compensation and retirement benefits |
4,792 |
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3,868 |
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Credit carryforwards |
4,510 |
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4,183 |
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State income taxes |
2,489 |
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1,791 |
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Security and loan valuations |
1,091 |
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427 |
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Capital loss carryforwards |
— |
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1,530 |
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Other |
1,654 |
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1,960 |
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Gross deferred tax assets |
49,007 |
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|
50,700 |
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Valuation allowance |
(1,796 |
) |
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(2,976 |
) |
Total deferred tax assets, net of valuation allowance |
47,211 |
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47,724 |
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Deferred tax liabilities |
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Long-term borrowings |
3,360 |
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3,328 |
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Equipment lease financing |
3,042 |
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2,957 |
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Mortgage servicing rights |
1,993 |
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4,280 |
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Intangibles |
1,894 |
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2,146 |
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Available-for-sale securities |
1,811 |
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4,330 |
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Fee income |
1,038 |
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1,235 |
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Other |
2,074 |
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2,375 |
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Gross deferred tax liabilities |
15,212 |
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20,651 |
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Net deferred tax assets |
$ |
31,999 |
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$ |
27,073 |
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| Deferred Tax Assets And Related Valuation Allowances Recognized For Net Operating And Other Loss Carryforwards And Tax Credit Carryforwards Text Block [Table Text Block] |
The table below summarizes the deferred tax assets and related valuation allowances recognized for the net operating loss and tax credit carryforwards at December 31, 2011.
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NOL and Tax Credit Carryforwards |
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(Dollars in millions) |
Deferred
Tax Asset
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Valuation
Allowance
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Net
Deferred
Tax Asset
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First Year
Expiring
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Net operating losses – U.S. |
$ |
5,088 |
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$ |
— |
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$ |
5,088 |
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After 2027 |
Net operating losses – U.K. |
8,836 |
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— |
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8,836 |
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None (1)
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Net operating losses – other non-U.S. |
383 |
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(251 |
) |
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132 |
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Various |
Net operating losses – U.S. states (2)
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1,879 |
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(915 |
) |
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964 |
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Various |
General business credits |
2,327 |
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— |
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2,327 |
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After 2027 |
Foreign tax credits |
2,183 |
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(246 |
) |
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1,937 |
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After 2017 |
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(1) |
The U.K. NOLs may be carried forward indefinitely. |
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(2) |
The NOLs and related valuation allowances for U.S. states before considering the benefit of federal deductions were $2.9 billion and $1.4 billion.
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