Income Taxes

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Note  10 Income Taxes

The components of income tax expense were:

	Three Months Ended March 31,
(Dollars in Millions)	2013			2012
Federal
Current	$	490		$	404
Deferred		12			68
Federal income tax		502			472
State
Current		58			50
Deferred		(2	)		5
State income tax		56			55
Total income tax provision	$	558		$	527

A reconciliation of expected income tax expense at the federal statutory rate of 35 percent to the Company’s applicable income tax expense follows:

	Three Months Ended March 31,
(Dollars in Millions)	2013			2012
Tax at statutory rate	$	681		$	641
State income tax, at statutory rates, net of federal tax benefit		36			36
Tax effect of
Tax credits, net of related expenses		(106	)		(89	)
Tax-exempt income		(54	)		(55	)
Noncontrolling interests		14			11
Other items		(13	)		(17	)
Applicable income taxes	$	558		$	527

The Company’s income tax returns are subject to review and examination by federal, state, local and foreign government authorities. On an ongoing basis, numerous federal, state, local and foreign examinations are in progress and cover multiple tax years. As of March 31, 2013, the federal taxing authority has completed its examination of the Company through the fiscal year ended December 31, 2008. The years open to examination by foreign, state and local government authorities vary by jurisdiction.

The Company’s net deferred tax liability was $1.3 billion at March 31, 2013 and December 31, 2012.