Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 589

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 16
Chunk 589
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232022Balance at January 1$7 $16 $18 Increase as a result of tax positions taken during a prior period— — (2)Increase as a result of tax positions taken during the current period1 1 3 Decreases related to settlements with tax authorities— (10)(3)Reduction as a result of expiration of statute of limitations— — — Balance at December 31$8 $7 $16 

F-88

Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTSComerica Incorporated and Subsidiaries

After consideration of the effect of the federal tax benefit available on unrecognized state tax benefits, the total amount of unrecognized tax benefits which, if recognized, would affect the Corporation’s effective tax rate was approximately $6 million and $5 million at December 31, 2024 and 2023, respectively.The following tax years for significant jurisdictions remain subject to examination as of December 31, 2024:JurisdictionTax YearsFederal2021-2023New York2018-2023California2020-2023Based on current knowledge and probability assessment of various potential outcomes, the Corporation believes current tax reserves are adequate, and the amount of any potential incremental liability arising is not expected to have a material adverse effect on the Corporation’s consolidated financial condition or results of operations. Probabilities and outcomes are reviewed as events unfold, and adjustments to the reserves are made when necessary.The principal components of deferred tax assets and liabilities were as follows:(in millions)  December 3120242023Deferred tax assets:Allowance for loan losses$145 $145 Deferred compensation72 77 Deferred loan origination fees and costs10 11 Net hedging losses187 186 Net unrealized losses on investment securities available-for-sale690 628 Operating lease liabilities75 81 Other temporary differences, net131 124 Total deferred tax assets before valuation allowance1,310 1,252 Valuation allowance(11)(6)Total deferred tax assets1,299 1,246 Deferred tax liabilities:Lease financing transactions(18)(20)Defined benefit plans(177)(159)Allowance for depreciation(9)(5)Leasing Right of Use assets(61)(67)Total deferred tax liabilities(265)(251)Net deferred tax assets$1,034 $995 

Included in deferred tax assets at December 31, 2024 was approximately $9 million