Comerica 2014 Annual Report Download - page 77

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F-40
defined benefit pension plan and $79 million for the non-qualified defined benefit pension plan. Actuarial pretax net losses
recognized in other comprehensive income (loss) for the year ended December 31, 2014 were $196 million for the qualified defined
benefit pension plan and $38 million for the non-qualified defined benefit pension plan. For further information, refer to Note 1
to the consolidated financial statements.
Defined benefit pension expense is recorded in “employee benefits” expense on the consolidated statements of income
and is allocated to business segments based on the segment's share of salaries expense. Accordingly, defined benefit pension
expense was allocated approximately 43 percent, 28 percent, 24 percent and 5 percent to the Retail Bank, Business Bank, Wealth
Management and Finance segments, respectively, in 2014.
INCOME TAXES
The calculation of the Corporation's income tax provision and tax-related accruals is complex and requires the use of
estimates and judgments. The provision for income taxes is the sum of income taxes due for the current year and deferred taxes.
Deferred taxes arise from temporary differences between the income tax basis and financial accounting basis of assets and liabilities.
Accrued taxes represent the net estimated amount due to or to be received from taxing jurisdictions, currently or in the future, and
are included in “accrued income and other assets” or “accrued expenses and other liabilities” on the consolidated balance sheets.
The Corporation assesses the relative risks and merits of tax positions for various transactions after considering statutes, regulations,
judicial precedent and other available information and maintains tax accruals consistent with these assessments. The Corporation
is subject to audit by taxing authorities that could question and/or challenge the tax positions taken by the Corporation.
Included in net deferred taxes are deferred tax assets. Deferred tax assets are evaluated for realization based on available
evidence of loss carryback capacity, projected future reversals of existing taxable temporary differences and assumptions made
regarding future events. A valuation allowance is provided when it is more-likely-than-not that some portion of the deferred tax
asset will not be realized.
Changes in the estimate of accrued taxes occur due to changes in tax law, interpretations of existing tax laws, new judicial
or regulatory guidance, and the status of examinations conducted by taxing authorities that impact the relative risks and merits of
tax positions taken by the Corporation. These changes, when they occur, impact the estimate of accrued taxes and could be
significant to the operating results of the Corporation. For further information on tax accruals and related risks, see Note 18 to the
consolidated financial statements.