Income Taxes (Tables)

9 Months Ended

Sep. 30, 2017

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)	2017		2016			2017			2016
Federal
Current	$	455	$	717		$	1,479		$	1,631
Deferred		54		(232	)		(103	)		(279	)
Federal income tax		509		485			1,376			1,352
State
Current		53		108			199			235
Deferred		27		(27	)		64			25
State income tax		80		81			263			260
Total income tax provision	$	589	$	566		$	1,639		$	1,612

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)	2017			2016			2017			2016
Tax at statutory rate	$	755		$	729		$	2,172		$	2,123
State income tax, at statutory rates, net of federal tax benefit		71			53			201			170
Tax effect of
Tax credits and benefits, net of related expenses		(187	)		(183	)		(577	)		(523	)
Tax-exempt income		(50	)		(49	)		(150	)		(148	)
Noncontrolling interests		(2	)		(5	)		(11	)		(15	)
Other items (a)		2			21			4			5
Applicable income taxes	$	589		$	566		$	1,639		$	1,612

(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.