Income Taxes (Tables)

6 Months Ended

Jun. 30, 2017

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)	2017			2016			2017			2016
Federal
Current	$	493		$	613		$	1,024		$	914
Deferred		(37	)		(154	)		(157	)		(47	)
Federal income tax		456			459			867			867
State
Current		81			37			146			127
Deferred		14			46			37			52
State income tax		95			83			183			179
Total income tax provision	$	551		$	542		$	1,050		$	1,046

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)	2017			2016			2017			2016
Tax at statutory rate	$	722		$	727		$	1,417		$	1,394
State income tax, at statutory rates, net of federal tax benefit		67			54			130			117
Tax effect of
Tax credits and benefits, net of related expenses		(197	)		(174	)		(390	)		(340	)
Tax-exempt income		(51	)		(49	)		(100	)		(99	)
Noncontrolling interests		(4	)		(5	)		(9	)		(10	)
Other items (a)		14			(11	)		2			(16	)
Applicable income taxes	$	551		$	542		$	1,050		$	1,046

(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.