SunTrust 2007 Annual Report Download - page 118
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SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
On October 24, 2006, the Company repurchased 9,926,589 shares of its common stock under an ASR agreement. The
Company paid $875 million (gross of settlement costs) for the repurchased shares. In March 2007, the Company completed
the ASR when it received, without additional payment, an additional 615,514 shares.
Note 15 – Income Taxes
The components of income tax expense included in the Consolidated Statements of Income were as follows:
(Dollars in thousands) Year ended December 31,
2007 2006 2005
Current income tax expense
Federal $697,628 $753,523 $654,389
State 65,644 7,481 46,449
Total $763,272 $761,004 $700,838
Deferred income tax expense (benefit)
Federal ($110,760) $105,906 $162,628
State (36,998) 2,060 15,690
Total ($147,758) $107,966 $178,318
Total income tax expense $615,514 $868,970 $879,156
The Company’s income from international operations, before provision for income taxes, was not significant. Additionally,
the tax effects of unrealized gains and losses on securities available for sale, unrealized gains and losses on certain derivative
financial instruments, and other comprehensive income related to certain retirement plans were recorded in other
comprehensive income and had no effect on income tax expense (see Note 23 “Accumulated Other Comprehensive Income,”
to the Consolidated Financial Statements.)
A reconciliation of the expected income tax expense at the statutory federal income tax rate of 35% to the Company’s actual
income tax expense and effective tax rate for the past three years is as follows:
2007 2006 2005
(Dollars in thousands) Amount
Percent
of
Pre-Tax
Income Amount
Percent
of
Pre-Tax
Income Amount
Percent
of
Pre-Tax
Income
Income tax expense at federal statutory rate $787,335 35.0% $1,045,254 35.0% $1,003,238 35.0%
Increase (decrease) resulting from:
Tax-exempt interest (74,183) (3.3) (62,113) (2.1) (51,016) (1.8)
Income tax credits, net (75,480) (3.4) (68,646) (2.3) (67,130) (2.3)
State income taxes, net of federal benefit 18,578 0.8 6,201 0.2 40,387 1.4
Dividends on subsidiary preferred stock (23,884) (1.0) (21,779) (0.7) (22,456) (0.8)
Other (16,852) (0.7) (29,947) (1.0) (23,867) (0.8)
Total income tax expense and rate $615,514 27.4% $868,970 29.1% $879,156 30.7%
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