Huntington National Bank 2013 Annual Report Download - page 163

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The following is a reconcilement of provision for income taxes:
Year Ended December 31,
(dollar amounts in thousands) 2013 2012 2011
Provision for income taxes computed at the statutory rate $ 299,094 $ 288,791 $ 247,532
Increases (decreases):
Tax-exempt income (34,378) (15,752) (9,695)
Tax-exempt bank owned life insurance income (19,747) (19,151) (21,169)
Dividends --- --- (17,744)
General business credits (39,868) (49,654) (31,269)
State deferred tax asset valuation allowance adjustment, net (6,020) (21,251) ---
Capital loss (961) (18,659) (7,000)
Affordable housing investment amortization 10,162 13,621 5,983
State income taxes, net 4,472 4,152 (2,962)
Other 3,060 1,998 945
Provision for income taxes $ 215,814 $ 184,095 $ 164,621
The significant components of deferred tax assets and liabilities at December 31, were as follows:
At December 31,
(dollar amounts in thousands) 2013 2012
Deferred tax assets:
Allowances for credit losses $ 244,684 $ 282,175
N
et operating and other loss carryforwar
d
153,826 117,435
Fair value adjustments 115,874 84,740
Tax credit carryforward 50,137 97,797
Accrued expense/prepaid 39,636 39,813
Market discount 20,671 ---
Partnership investments 20,550 7,148
Purchase accounting adjustments 14,096 8,383
Other 10,437 17,883
Total deferred tax assets 669,911 655,374
Deferred tax liabilities:
Lease financing 146,814 122,395
Loan origination costs 82,345 61,189
Mortgage servicing rights 48,007 30,686
Operating assets 46,524 35,655
Purchase accounting adjustments 39,578 50,704
Securities adjustments 33,719 30,713
Pension and other employee benefits 12,608 33,898
Other 11,313 21,447
Total deferred tax liabilities 420,908 386,687
N
et deferred tax asset before valuation allowance 249,003 268,687
Valuation allowance (111,435) (64,812)
N
et deferred tax asse
t
$ 137,568 $ 203,875
At December 31, 2013, Huntington’s net deferred tax asset related to loss and other carryforwards was $203.9 million. This was
comprised of federal net operating loss carryforwards of $5.4 million, which will begin expiring in 2023, $52.1 million of state net
operating loss carryforward, which will begin expiring in 2015, an alternative minimum tax credit carryforward of $50.1 million,
which may be carried forward indefinitely, and a capital loss carryforward of $96.3 million, which will expire in 2015. A valuation
allowance of $96.3 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.