Huntington National Bank 2011 Annual Report Download - page 190

The significant components of deferred tax assets and liabilities at December 31, were as follows:
At December 31,
2011 2010
(dollar amounts in thousands)
Deferred tax assets:
Allowances for credit losses ..................................... $348,269 $457,692
Loss and other carryforwards .................................... 217,877 262,504
Fair value adjustments .......................................... 92,569 106,855
Accrued expense/prepaid ....................................... 32,736 39,685
Purchase accounting adjustments ................................. 10,556 11,773
Pension and other employee benefits .............................. —5,671
Other ....................................................... 15,661 20,309
Total deferred tax assets ......................................... 717,668 904,489
Deferred tax liabilities:
Lease financing ............................................... 65,029 87,735
Purchase accounting adjustments ................................. 51,754 65,787
Loan origination costs .......................................... 51,124 43,182
Mortgage servicing rights ....................................... 45,948 43,541
Securities adjustments .......................................... 40,273 66,090
Operating assets ............................................... 33,511 15,161
Pension and other employee benefits .............................. 19,290 —
Partnership investments ........................................ 6,761 8,429
Other ....................................................... 15,558 4,441
Total deferred tax liabilities ...................................... 329,248 334,366
Net deferred tax asset before valuation allowance .................... 388,420 570,123
Valuation allowance ............................................. (23,594) (31,817)
Net deferred tax asset ........................................... $364,826 $538,306
At December 31, 2011, Huntington’s deferred tax asset related to loss and other carryforwards was
$217.9 million. This was comprised of net operating loss carryforward of $111.0 million, which will begin
expiring in 2023, an alternative minimum tax credit carryforward of $37.2 million, which may be carried forward
indefinitely, a general business credit carryover of $46.1 million which will expire in 2029, and a capital loss
carryforward of $23.6 million, which will expire in 2015. A valuation allowance of $23.6 million has been
established for the capital loss carryforward because Management believes that it is more likely than not that the
realization of this asset will not occur. The valuation allowance on this asset decreased $8.2 million from 2010.
In Management’s opinion, the results of future operations will generate sufficient taxable income to realize the
net operating loss, alternative minimum tax credit carryforward, and general business credit carryforward.
Consequently, Huntington determined that a valuation allowance for these deferred tax assets was not required as
of December 31, 2011.
18. BENEFIT PLANS
Huntington sponsors the Plan, a non-contributory defined benefit pension plan covering substantially all
employees hired or rehired prior to January 1, 2010. The Plan provides benefits based upon length of service and
compensation levels. The funding policy of Huntington is to contribute an annual amount that is at least equal to
the minimum funding requirements but not more than that deductible under the Internal Revenue Code. There
was no minimum required contribution to the Plan in 2011, although Huntington contributed $50.0 million to the
Plan in March 2011 and $40.0 million to the Plan in December 2011.
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