Income Taxes (Tables)

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

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

Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 21 Percent and 35 Percent to Company's Applicable Income Tax Expense

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