Income Taxes (Tables)

6 Months Ended

Jun. 30, 2014

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)	2014		2013			2014			2013
Federal
Current	$	421	$	626		$	911		$	1,116
Deferred		38		(104	)		(29	)		(92	)
Federal income tax		459		522			882			1,024
State
Current		84		19			167			77
Deferred		4		(12	)		(6	)		(14	)
State income tax		88		7			161			63
Total income tax provision	$	547	$	529		$	1,043		$	1,087

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)	2014			2013			2014			2013
Tax at statutory rate	$	719		$	690		$	1,387		$	1,371
State income tax, at statutory rates, net of federal tax benefit		58			4			101			40
Tax effect of
Tax credits and benefits, net of related expenses		(184	)		(112	)		(349	)		(218	)
Tax-exempt income		(51	)		(53	)		(103	)		(107	)
Noncontrolling interests		(5	)		15			(10	)		29
Other items		10			(15	)		17			(28	)
Applicable income taxes	$	547		$	529		$	1,043		$	1,087