BB&T 2007 Annual Report Download - page 106
Download and view the complete annual report
Please find page 106 of the 2007 BB&T annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
 |
 |
BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of December 31, 2006
Before-Tax
Amount Tax
Benefit After-Tax
Amount
(Dollars in millions)
Unrealized net losses on securities available for sale $(391) $(142) $(249)
Unrecognized net pension and postretirement costs (180) (70) (110)
Total $(571) $(212) $(359)
Note 13. Income Taxes
The provision for income taxes comprised the following:
Years Ended December 31,
2007 2006 2005
(Dollars in millions)
Current expense:
Federal $765 $668 $637
State 54 42 41
Foreign 25 115 109
Total current expense 844 825 787
Deferred expense (benefit):
Federal (5) 115 32
State (3) 5 (6)
Total deferred expense (benefit) (8) 120 26
Provision for income taxes $836 $945 $813
The foreign income tax expense is related to income generated on assets controlled by a foreign subsidiary of
Branch Bank.
The reasons for the difference between the provision for income taxes and the amount computed by applying
the statutory Federal income tax rate to income before income taxes were as follows:
Years Ended December 31,
2007 2006 2005
(Dollars in millions)
Federal income taxes at statutory rate of 35% $ 900 $ 866 $ 863
Increase (decrease) in provision for income taxes as a result of:
Addition to federal tax reserves principally related to leveraged lease transactions 19 141 21
State income taxes, net of Federal tax benefit 33 31 22
Tax exempt income (73) (62) (61)
Other, net (43) (31) (32)
Provision for income taxes $ 836 $ 945 $ 813
Effective income tax rate 32.5% 38.2% 33.0%
BB&T has entered into certain transactions that have favorable tax treatment. These transactions include
loans and investments that produce tax-exempt income, reducing BB&T’s effective tax rate from the statutory
rate.
106