Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 465

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 16
Chunk 465
---
.

Income Taxes and Related Items

The provision for income taxes was $190 million in 2024, compared to $263 million in 2023. Net deferred tax assets were $1.0 billion at both December 31, 2024 and December 31, 2023. Refer to Note 18 to the consolidated financial statements for information about the components of net deferred tax assets. The Corporation evaluated deferred tax assets of $1.3 billion and determined that a valuation allowance of $11 million for federal foreign tax credits and certain state net operating loss (NOL) carryforwards was needed at December 31, 2024, compared to $6 million at December 31, 2023. For further information on the Corporation’s valuation policy for deferred tax assets, refer to Note 1 of the consolidated financial statements. 

F-9

STRATEGIC LINES OF BUSINESS

The Corporation has strategically aligned its operations into three major business segments: the Commercial Bank, the Retail Bank and Wealth Management. These business segments are differentiated based on the type of customer and the related products and services provided. In addition to the three major business segments, the Finance and Other categories include items not directly associated with the business segments. The performance of the business segments is not comparable with the Corporation's consolidated results and is not necessarily comparable with similar information for any other financial institution. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Note 22 to the consolidated financial statements describes the Corporation's segment reporting methodology as well as the business activities of each business segment and presents financial results of the business segments for the years ended December 31, 2024, 2023 and 2022.

The Corporation's management accounting system assigns balance sheet and income statement items to each segment using certain methodologies, which are regularly reviewed and refined. These methodologies may be modified as the management accounting system is enhanced and changes occur in the Corporation's organizational structure and/or product lines.

Net interest income for each segment reflects the interest income generated by earning assets less interest expense on interest-bearing liabilities plus the net impact from associated internal funds transfer pricing (FTP) funding credits and charges. The FTP methodology allocates credits to each business segment for deposits and other funds provided as well as charges for loans and other assets being funded. FTP crediting rates on deposits and other funds provided reflect the long-term value of deposits and other funding sources based on their implied maturities.