Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 11 Income Taxes

The components of income tax expense were:

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in Millions)	2024		2023		2024		2023
Federal
Current	$	144	$	416	$	645	$	1,076
Deferred	79		(51)		261		(50)
Federal income tax	223		365		906		1,026
State
Current	105		62		214		277
Deferred	22		4		22		(35)
State income tax	127		66		236		242
Total income tax provision	$	350	$	431	$	1,142	$	1,268

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)	2024		2023		2024		2023
Tax at statutory rate	$	435	$	411	$	1,218	$	1,232
State income tax, at statutory rates, net of federal tax benefit	106		85		289		270
Tax effect of
Tax credits and benefits, net of related expenses	(140)		(96)		(284)		(236)
Exam resolutions	(1)		—		(98)		—
Tax-exempt income	(38)		(40)		(105)		(115)
Other items	(12)		71		122		117
Applicable income taxes	$	350	$	431	$	1,142	$	1,268

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, 2024, federal tax examinations for all years ending through December 31, 2016 are completed and resolved. The Company’s tax returns for the years ended December 31, 2017 through December 31, 2020 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 $5.6 billion at September 30, 2024 and $6.4 billion at December 31, 2023.