Income Taxes (Tables)

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense were:

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in Millions)	2013			2012			2013			2012
Federal
Current	$	626		$	551		$	1,116		$	955
Deferred		(104	)		(92	)		(92	)		(24	)
Federal income tax		522			459			1,024			931
State
Current		19			112			77			162
Deferred		(12	)		(7	)		(14	)		(2	)
State income tax		7			105			63			160
Total income tax provision	$	529		$	564		$	1,087		$	1,091

Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 35 Percent to Company's Applicable Income Tax Expense

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 June 30,						Six Months Ended June 30,
(Dollars in Millions)	2013			2012			2013			2012
Tax at statutory rate	$	690		$	680		$	1,371		$	1,321
State income tax, at statutory rates, net of federal tax benefit		4			68			40			104
Tax effect of
Tax credits, net of related expenses		(112	)		(113	)		(218	)		(202	)
Tax-exempt income		(53	)		(55	)		(107	)		(110	)
Noncontrolling interests		15			13			29			24
Other items		(15	)		(29	)		(28	)		(46	)
Applicable income taxes	$	529		$	564		$	1,087		$	1,091