Income Taxes (Tables)

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense were:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in Millions)	2013		2012		2013			2012
Federal
Current	$	390	$	461	$	1,506		$	1,416
Deferred		57		50		(35	)		26
Federal income tax		447		511		1,471			1,442
State
Current		84		77		161			239
Deferred		11		5		(3	)		3
State income tax		95		82		158			242
Total income tax provision	$	542	$	593	$	1,629		$	1,684

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 September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2013			2012			2013			2012
Tax at statutory rate	$	690		$	709		$	2,061		$	2,030
State income tax, at statutory rates, net of federal tax benefit		62			53			102			157
Tax effect of
Tax credits, net of related expenses (a)		(176	)		(120	)		(394	)		(322	)
Tax-exempt income		(52	)		(55	)		(159	)		(165	)
Noncontrolling interests		13			15			42			39
Other items		5			(9	)		(23	)		(55	)
Applicable income taxes	$	542		$	593		$	1,629		$	1,684

(a) Excludes tax credits of $209 million for the three and nine months ended September 30, 2013 which were recognized as a reduction to the related investment asset.