The components of income tax expense were:


	Three Months Ended September 30						Nine Months Ended September 30
(Dollars in Millions)	2019			2018			2019			2018
Federal
Current	$	414		$	385		$	1,002		$	931
Deferred		(59	)		(53	)		26			(17	)
Federal income tax		355			332			1,028			914
State
Current		140			141			280			295
Deferred		(28	)		(13	)		(14	)		54

State income tax		112			128			266			349
Total income tax provision	$	467		$	460		$	1,294		$	1,263

A reconciliation of expected income tax expense at the federal statutory rate of 21 percent to the Company’s applicable income tax expense follows:


	Three Months Ended September 30						Nine Months Ended September 30
(Dollars in Millions)	2019			2018			2019			2018
Tax at statutory rate	$	501		$	479		$	1,417		$	1,370
State income tax, at statutory rates, net of federal tax benefit		99			102			277			287
Tax effect of
Tax credits and benefits, net of related expenses		(97	)		(122	)		(307	)		(369	)
Exam resolutions		–			–			(49	)		(49	)
Tax-exempt income		(29	)		(33	)		(92	)		(98	)
Noncontrolling interests		(1	)		(2	)		(5	)		(5	)
Other items		(6	)		36			53			127
Applicable income taxes	$	467		$	460		$	1,294		$	1,263

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 September 30, 2019, federal tax examinations for all years ending through December 31, 2010, and years ending December 31, 2013, and December 31, 2014 are completed and resolved. The Company’s tax returns for the years ended December 31, 2011, 2012, 2015, and 2016 are under examination by the Internal Revenue Service. The years open to examination by foreign, state and local government authorities vary by jurisdiction.

The Company’s net deferred tax asset was $

409

million at September

2019

and $

809

million at December

2018