
Note 11		Income Taxes

The components of income tax expense were:


	Three Months Ended March 31
(Dollars in Millions)	2018		2017
Federal
Current	$	234	$	531
Deferred		19		(120	)
Federal income tax		253		411
State
Current		92		65
Deferred		17		23
State income tax		109		88
Total income tax provision	$	362	$	499

A reconciliation of expected income tax expense at the federal statutory rate of 21 percent and 35 percent for the three months ended March 31, 2018 and 2017, respectively, to the Company’s applicable income tax expense follows:


	Three Months Ended March 31
(Dollars in Millions)	2018			2017
Tax at statutory rate	$	429		$	695
State income tax, at statutory rates, net of federal tax benefit		89			63
Tax effect of
Tax credits and benefits, net of related expenses		(115	)		(193	)
Exam resolutions		(49	)		–
Tax-exempt income		(32	)		(49	)
Noncontrolling interests		(1	)		(5	)
Other items		41			(12	)
Applicable income taxes	$	362		$	499

The Company’s income tax returns are subject to review and examination by federal, state, local and foreign government authorities. On an ongoing basis, numerous federal, state, local and foreign examinations are in progress and cover multiple tax years. As of March 31, 2018, the federal taxing authority has completed its examination of the Company through the fiscal year ended December 31, 2010. The years open to examination by foreign, state and local government authorities vary by jurisdiction.

The Company’s net deferred tax asset was $671 million at March 31, 2018 and $473 million at December 31, 2017.