Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes

NOTE 11 – Income Taxes

As of September 30, 2011, and December 31, 2010, we had no liability for unrecognized tax benefits. Details about our liability for unrecognized tax benefits are found in our 2010 Annual Report on Form 10-K, Item 8, Note 11, Income Taxes, Page 120.

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

(Dollars in millions)	Three months ended September 30,										Nine months ended September 30,
	2011					2010					2011					2010
Tax at statutory rate	$	4		35.0	%	$	77		35.0	%	$	(4	)	35.0	%	$	114		35.0	%
Increase (decrease) resulting from:
Tax-exempt income from municipal bonds		(9	)	(81.2	)		(9	)	(4.1	)		(26	)	254.7			(27	)	(8.3	)
Dividend received exclusion		(5	)	(44.5	)		(5	)	(2.1	)		(15	)	144.8			(14	)	(4.2	)
Other		2		18.0			2		0.6			3		(14.5	)		3		0.7
Effective tax	$	(8	)	(72.7	)%	$	65		29.4	%	$	(42	)	420.0	%	$	76		23.2	%