Synchrony Financial Income Taxes Disclosure
| For the years ended December 31 ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| U.S. | $ | 4,574 | $ | 4,519 | $ | 2,873 | |||||||||||
| Non-U.S. | 47 | 34 | 31 | ||||||||||||||
| Earnings before provision for income taxes | $ | 4,621 | $ | 4,553 | $ | 2,904 | |||||||||||
| For the years ended December 31 ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Current provision for income taxes | |||||||||||||||||
U.S. federal | $ | 705 | $ | 990 | $ | 943 | |||||||||||
| U.S. state and local | 167 | 155 | 171 | ||||||||||||||
| Non-U.S. | 13 | 7 | 10 | ||||||||||||||
| Total current provision for income taxes | 885 | 1,152 | 1,124 | ||||||||||||||
| Deferred provision (benefit) for income taxes | |||||||||||||||||
U.S. federal | 184 | (80) | (384) | ||||||||||||||
| U.S. state and local | 1 | (17) | (73) | ||||||||||||||
| Non-U.S. | (1) | (1) | (1) | ||||||||||||||
| Deferred provision (benefit) for income taxes | 184 | (98) | (458) | ||||||||||||||
| Total provision for income taxes | $ | 1,069 | $ | 1,054 | $ | 666 | |||||||||||
| For the years ended December 31 ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
Rate Component | Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||||||||||||
| U.S. federal statutory income tax rate | $ | 970 | 21.0 | % | $ | 956 | 21.0 | % | $ | 610 | 21.0 | % | |||||||||||||||||||||||
U.S. state and local income taxes, net of federal effect | 156 | 3.4 | 153 | 3.4 | 103 | 3.5 | |||||||||||||||||||||||||||||
U.S. federal | |||||||||||||||||||||||||||||||||||
Tax credits | (58) | (1.3) | (37) | (0.8) | (43) | (1.5) | |||||||||||||||||||||||||||||
Nontaxable and nondeductible items | 9 | 0.2 | 18 | 0.4 | 6 | 0.2 | |||||||||||||||||||||||||||||
Other reconciling items | 15 | 0.3 | 8 | 0.1 | 12 | 0.4 | |||||||||||||||||||||||||||||
Non-U.S. tax effects | 1 | — | — | — | 3 | 0.1 | |||||||||||||||||||||||||||||
Changes in prior year uncertain tax benefits | (24) | (0.5) | (44) | (1.0) | (25) | (0.8) | |||||||||||||||||||||||||||||
| Effective tax rate | $ | 1,069 | 23.1 | % | $ | 1,054 | 23.1 | % | $ | 666 | 22.9 | % | |||||||||||||||||||||||
| For the years ended December 31 ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
U.S. federal | $ | 559 | $ | 922 | $ | 941 | |||||||||||
| U.S. state and local | |||||||||||||||||
| California | 43 | — | 26 | ||||||||||||||
| All other states | 100 | 156 | 149 | ||||||||||||||
Non-U.S. | 8 | 9 | 9 | ||||||||||||||
Total income taxes paid | $ | 710 | $ | 1,087 | $ | 1,125 | |||||||||||
| At December 31 ($ in millions) | 2025 | 2024 | |||||||||
| Assets | |||||||||||
| Allowance for credit losses | $ | 2,642 | $ | 2,718 | |||||||
| Compensation and employee benefits | 163 | 133 | |||||||||
Other assets | 186 | 216 | |||||||||
| Total deferred income tax assets before valuation allowance | 2,991 | 3,067 | |||||||||
| Valuation allowance | (26) | (20) | |||||||||
| Total deferred income tax assets | $ | 2,965 | $ | 3,047 | |||||||
| Liabilities | |||||||||||
| Original issue discount | $ | (265) | $ | (262) | |||||||
| Goodwill and identifiable intangibles | (215) | (197) | |||||||||
| Investment securities | (201) | (193) | |||||||||
Other liabilities | (206) | (105) | |||||||||
| Total deferred income tax liabilities | (887) | (757) | |||||||||
| Net deferred income tax assets | $ | 2,078 | $ | 2,290 | |||||||
($ in millions) | 2025 | 2024 | |||||||||
| Balance at January 1 | $ | 207 | $ | 230 | |||||||
| Additions: | |||||||||||
| Tax positions of the current year | 40 | 39 | |||||||||
| Tax positions of prior years | 2 | — | |||||||||
| Reductions: | |||||||||||
| Prior year tax positions | — | (20) | |||||||||
| Settlements with tax authorities | — | (7) | |||||||||
| Expiration of the statute of limitation | (31) | (35) | |||||||||
| Balance at December 31 | $ | 218 | $ | 207 | |||||||
| Portion of balance that, if recognized, would impact the effective income tax rate | $ | 172 | $ | 163 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 8, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 10, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 25, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.