Income Taxes

As of March 31, 2016, and December 31, 2015, we had no liability for unrecognized tax benefits.

The differences between the 35 percent statutory federal income tax rate and our effective income tax rate were as follows:



(Dollars in millions)	Three months ended March 31,
	2016					2015
Tax at statutory rate:	$	93		35.0	%	$	61		35.0	%
Increase (decrease) resulting from:
Tax-exempt income from municipal bonds	(9		)	(3.4	)	(8		)	(4.6	)
Dividend received exclusion	(8		)	(3.0	)	(8		)	(4.6	)
Other	1			0.5		1			0.6
Provision for income taxes	$	77		29.1	%	$	46		26.4	%

The provision for federal income taxes is based upon filing a consolidated income tax return for the company and its subsidiaries. As of March 31, 2016, we had no operating or capital loss carry forwards.