Income Taxes

3 Months Ended

Mar. 31, 2020


Note 11		Income Taxes

The components of income tax expense were:


	Three Months Ended March 31
(Dollars in Millions)	2020			2019
Federal
Current	$	315		$	220
Deferred		(106	)		116
Federal income tax		209			336
State
Current		70			30
Deferred		(19	)		12

State income tax		51			42
Total income tax provision	$	260		$	378

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 March 31
(Dollars in Millions)	2020			2019
Tax at statutory rate	$	302		$	438
State income tax, at statutory rates, net of federal tax benefit		59			84
Tax effect of
Tax credits and benefits, net of related expenses		(102	)		(103	)
Exam resolutions		–			(49	)
Tax-exempt income		(29	)		(32	)
Other items		30			40
Applicable income taxes	$	260		$	378

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, 2020, 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, 2016, 2017 and 2018 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 $223 million at March 31, 2020 and $382 million at December 31, 2019.