Ally Bank 2014 Annual Report Download - page 149

Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K
137
The following table summarizes net deferred tax assets including related valuation allowances at December 31, 2014.
($ in millions)
Deferred Tax
Asset/(Liability)
Valuation
Allowance
Net Deferred Tax
Asset/(Liability)
Years of
Expiration
Tax credit carryforwards
Foreign tax credits $ 1,741 $ (478) $ 1,263 2015 - 2023
General business credits 153 — 153 2032 - 2034
AMT credits 17 — 17 n/a
Total tax credit carryforwards 1,911 (478) 1,433
Tax loss carryforwards
Net operating losses — federal 1,001 — 1,001 2025 - 2033
Capital losses — federal 157 (135) 22 2015 - 2017
Total tax loss carryforwards 1,158 (135) 1,023
State and local tax carryforwards
Net operating losses — state 220 (82) 138 2015 - 2034
Capital losses — state 38 (33) 5 2015 - 2017
Total state and local carryforwards 258 (a) (115) 143
Other deferred tax assets 979 (6) 973 n/a
Deferred tax assets 4,306 (734) 3,572
Deferred tax liabilities (1,765) — (1,765) n/a
Net deferred tax assets $ 2,541 $ (734) $ 1,807
(a) State net operating loss and capital loss carryforwards are included in the state and local taxes total disclosed in our deferred inventory table above.
As of December 31, 2014, we do not assert that any foreign earnings are indefinitely reinvested outside of the United States. As a result,
all deferred tax liabilities for incremental U.S. tax that stem from temporary differences related to investments in foreign subsidiaries or
foreign corporate joint ventures have been recognized as of December 31, 2014.
The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits.
($ in millions) 2014 2013 2012
Balance at January 1, $ 262 $ 102 $ 198
Additions based on tax positions related to the current year —174 14
Additions for tax positions of prior years 912
Reductions for tax positions of prior years —— (4)
Settlements (79) (14) (17)
Expiration of statute of limitations (1) (1) (4)
Foreign-currency translation adjustments —— (5)
Deconsolidation of ResCap and discontinued operations —— (82)
Balance at December 31, $ 191 $ 262 $ 102
Included in the unrecognized tax benefits balances are some items, the recognition of which would not affect the effective tax rate, such
as the tax effect of certain temporary differences and the portion of gross state unrecognized tax benefits that would be offset by the tax
benefit of the associated federal deduction. At December 31, 2014, 2013, and 2012, the balance of unrecognized tax benefits that, if
recognized, would affect our effective tax rate is $182 million, $240 million, and $84 million, respectively.
We recognize accrued interest and penalties related to uncertain income tax positions in interest expense and other operating expenses,
respectively. For the years ended December 31, 2014, 2013, and 2012, $1 million, $2 million, and $1 million, respectively, were accrued for
interest and penalties with the cumulative accrued balance totaling $5 million at December 31, 2014, $7 million at December 31, 2013, and $7
million at December 31, 2012.
It is reasonably possible that certain tax positions may be settled within the next twelve months and the unrecognized tax benefits would
decrease by up to $180 million.