SunTrust 2012 Annual Report Download - page 159

Notes to Consolidated Financial Statements (Continued)
143
NOTE 14 - INCOME TAXES
The components of income tax provision included in the Consolidated Statements of Income were as follows:
Year ended December 31
(Dollars in millions) 2012 2011 2010
Current income tax expense/(benefit):
Federal $553 ($4) $—
State 26 — (14)
Total $579 ($4) ($14)
Deferred income tax expense/(benefit):
Federal $229 $81 ($177)
State (35) 2 6
Total 194 83 (171)
Total income tax expense/(benefit) $773 $79 ($185)
The income tax provision does not reflect the tax effects of unrealized gains and losses and other income and expenses
recorded in AOCI. For additional information on AOCI, see Note 21, “Accumulated Other Comprehensive Income.”
A reconciliation of the expected income tax expense at the statutory federal income tax rate of 35% to the Company’s actual
provision/(benefit) for income taxes and the effective tax rate is as follows:
Year ended December 31
2012 2011 2010
(Dollars in millions) Amount
Percent of
Pre-Tax
Income Amount
Percent of
Pre-Tax
Income Amount
Percent of
Pre-Tax
Income 1
Income tax expense at federal statutory rate $956 35.0% $254 35.0% $1 35.0%
Increase (decrease) resulting from:
Tax-exempt interest (77) (2.8) (72) (9.9) (74) NM
Dividends received deduction (8) (0.3) (14) (1.9) (13) NM
Income tax credits, net (83) (3.0) (88) (12.1) (88) NM
State income taxes, net (6) (0.2) 2 0.2 12 NM
Completion of audit examinations by taxing authorities — — — — (20) NM
Other (9) (0.4) (3) (0.4) (3) NM
Total income tax expense/(benefit) and rate $773 28.3% $79 10.9% ($185) NM
1 "NM" - Calculated percentage was not considered to be meaningful