Income Taxes (Tables)

9 Months Ended

Sep. 30, 2015

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)	2015			2014			2015			2014
Federal
Current	$	556		$	423		$	1,355		$	1,334
Deferred		(114	)		10			(81	)		(19	)
Federal income tax		442			433			1,274			1,315
State
Current		103			101			283			268
Deferred		(11	)		(11	)		(16	)		(17	)
State income tax		92			90			267			251
Total income tax provision	$	534		$	523		$	1,541		$	1,566

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)	2015			2014			2015			2014
Tax at statutory rate	$	713		$	704		$	2,095		$	2,091
State income tax, at statutory rates, net of federal tax benefit		60			62			174			163
Tax effect of
Tax credits and benefits, net of related expenses		(177	)		(186	)		(523	)		(535	)
Tax-exempt income		(51	)		(51	)		(154	)		(154	)
Noncontrolling interests		(5	)		(5	)		(15	)		(15	)
Other items (a)		(6	)		(1	)		(36	)		16
Applicable income taxes	$	534		$	523		$	1,541		$	1,566

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