Income Taxes (Tables)

9 Months Ended

Sep. 30, 2016

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)	2016			2015			2016			2015
Federal
Current	$	717		$	556		$	1,631		$	1,355
Deferred		(232	)		(114	)		(279	)		(81	)
Federal income tax		485			442			1,352			1,274
State
Current		108			103			235			283
Deferred		(27	)		(11	)		25			(16	)
State income tax		81			92			260			267
Total income tax provision	$	566		$	534		$	1,612		$	1,541

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)	2016			2015			2016			2015
Tax at statutory rate	$	729		$	713		$	2,123		$	2,095
State income tax, at statutory rates, net of federal tax benefit		53			60			170			174
Tax effect of
Tax credits and benefits, net of related expenses		(183	)		(177	)		(523	)		(523	)
Tax-exempt income		(49	)		(51	)		(148	)		(154	)
Noncontrolling interests		(5	)		(5	)		(15	)		(15	)
Other items (a)		21			(6	)		5			(36	)
Applicable income taxes	$	566		$	534		$	1,612		$	1,541

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