Income Taxes

As of June 30, 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 June 30,										Six months ended June 30,
	2017					2016					2017					2016
Tax at statutory rate:	$	44		35.0	%	$	58		35.0	%	$	141		35.0	%	$	151		35.0	%
Increase (decrease) resulting from:
Tax-exempt income from municipal bonds	(9		)	(7.0	)	(8		)	(4.8	)	(18		)	(4.5	)	(17		)	(3.9	)
Dividend received exclusion	(9		)	(7.0	)	(8		)	(4.8	)	(17		)	(4.2	)	(16		)	(3.7	)
Other	2			0.9		1			0.5		(3		)	(0.8	)	2			0.4
Provision for income taxes	$	28		21.9	%	$	43		25.9	%	$	103		25.5	%	$	120		27.8	%

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 an immaterial amount during the three months ended June 30, 2017 and $6 million and 1.5 percent, during the six months ended June 30, 2017.

As of June 30, 2017, we had no operating or capital loss carry forwards.