Income Taxes (Tables)

6 Months Ended

Jun. 30, 2015

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)	2015		2014		2015			2014
Federal
Current	$	419	$	421	$	799		$	911
Deferred		13		38		33			(29	)
Federal income tax		432		459		832			882
State
Current		96		84		180			167
Deferred		–		4		(5	)		(6	)
State income tax		96		88		175			161
Total income tax provision	$	528	$	547	$	1,007		$	1,043

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)	2015			2014			2015			2014
Tax at statutory rate	$	709		$	719		$	1,382		$	1,387
State income tax, at statutory rates, net of federal tax benefit		63			58			114			101
Tax effect of
Tax credits and benefits, net of related expenses		(182	)		(184	)		(346	)		(349	)
Tax-exempt income		(51	)		(51	)		(103	)		(103	)
Noncontrolling interests		(6	)		(5	)		(10	)		(10	)
Other items (a)		(5	)		10			(30	)		17
Applicable income taxes	$	528		$	547		$	1,007		$	1,043

(a) Includes the resolution of certain tax matters with taxing authorities in the first quarter of 2015.