Income Taxes (Tables)

9 Months Ended

Sep. 30, 2018

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)	2018			2017		2018			2017
Federal
Current	$	385		$	455	$	931		$	1,479
Deferred		(53	)		54		(17	)		(103	)
Federal income tax		332			509		914			1,376
State
Current		141			53		295			199
Deferred		(13	)		27		54			64
State income tax		128			80		349			263
Total income tax provision	$	460		$	589	$	1,263		$	1,639

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 for 2018 and 35 percent for 2017 to the Company’s applicable income tax expense follows:

	Three Months Ended September 30						Nine Months Ended September 30
(Dollars in Millions)	2018			2017			2018			2017
Tax at statutory rate	$	479		$	755		$	1,370		$	2,172
State income tax, at statutory rates, net of federal tax benefit		102			71			287			201
Tax effect of
Tax credits and benefits, net of related expenses		(122	)		(187	)		(369	)		(577	)
Exam resolutions		–			–			(49	)		–
Tax-exempt income		(33	)		(50	)		(98	)		(150	)
Noncontrolling interests		(2	)		(2	)		(5	)		(9	)
Other items		36			2			127			2
Applicable income taxes	$	460		$	589		$	1,263		$	1,639