Income Taxes (Tables)

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense were:

	Three Months Ended March 31,
(Dollars in Millions)	2017			2016
Federal
Current	$	531		$	301
Deferred		(120	)		107
Federal income tax		411			408
State
Current		65			90
Deferred		23			6
State income tax		88			96
Total income tax provision	$	499		$	504

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 March 31,
(Dollars in Millions)	2017			2016
Tax at statutory rate	$	695		$	667
State income tax, at statutory rates, net of federal tax benefit		63			63
Tax effect of
Tax credits and benefits, net of related expenses		(193	)		(166	)
Tax-exempt income		(49	)		(50	)
Noncontrolling interests		(5	)		(5	)
Other items (a)		(12	)		(5	)
Applicable income taxes	$	499		$	504

(a) Includes excess tax benefits associated with stock-based compensation under accounting guidance effective January 1, 2017. Previously, these benefits were recorded in capital surplus.