SunTrust 2010 Annual Report Download - page 151

SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
Note 15 - Income Taxes
The components of income tax expense/(benefit) included in the Consolidated Statements of Income/(Loss) were as follows:
(Dollars in millions) Year ended December 31
Current income tax expense/(benefit) 2010 2009 2008
Federal $- ($7) $141
State (14) 313
Total ($14) ($4) $154
Deferred income tax expense/(benefit)
Federal ($177) ($798) ($94)
State 6(96) (127)
Total (171) (894) (221)
Total income tax benefit ($185) ($898) ($67)
The Company’s income from international operations was not significant. Additionally, the tax effects of unrealized gains
and losses and other income and expenses recorded in AOCI are also recorded in AOCI and had no effect on income tax
expense/(benefit) (see Note 23, “Accumulated Other Comprehensive Income,” to the Consolidated Financial Statements).
A reconciliation of the expected income tax expense/(benefit) at the statutory federal income tax rate of 35% to the
Company’s actual income tax expense/(benefit) and the effective tax rate for the past three years is as follows:
Years ended December 31
2010 2009 2008
(Dollars in millions) Amount
Percent of
Pre-Tax
Income Amount
Percent of
Pre-Tax
Income Amount
Percent of
Pre-Tax
Income
Income tax expense/(benefit) at federal statutory rate $1 35.0 % ($861) (35.0) % $255 35.0 %
Increase (decrease) resulting from:
Tax-exempt interest (74) (1,927.2) (79) (3.2) (75) (10.2)
Dividends received deduction (13) (337.7) (12) (0.5) (14) (1.9)
Charitable contribution --- - (64) (8.8)
Income tax credits, net (88) (2,313.4) (80) (3.2) (75) (10.3)
State income taxes, net 12 320.1 (48) (2.0) (60) (8.2)
Completion of audit examinations by taxing authorities (20) (524.7) (55) (2.2) (14) (1.9)
Goodwill impairment --237 9.6 - -
Other (3) (82.4) - - (20) (2.9)
Total income tax benefit and rate ($185) (4,830.3) % ($898) (36.5) % ($67) (9.2) %
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