Income Taxes

As of March 31, 2017, and December 31, 2016, 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,
	2017					2016
Tax at statutory rate:	$	97		35.0	%	$	93		35.0	%
Increase (decrease) resulting from:
Tax-exempt income from municipal bonds	(9		)	(3.3	)	(9		)	(3.4	)
Dividend received exclusion	(8		)	(2.9	)	(8		)	(3.0	)
Other	(5		)	(1.6	)	1			0.5
Provision for income taxes	$	75		27.2	%	$	77		29.1	%

The provision for federal income taxes is based upon filing a consolidated income tax return for the company and its subsidiaries.

Included in Other above is the adoption of ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which decreased both the provision for income taxes and the effective income tax rate by $6 million and 2.2 percent, respectively.

As of March 31, 2017, we had no operating or capital loss carry forwards.