Income Taxes (Tables)

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense were:

	Three Months Ended June 30					Six Months Ended June 30
(Dollars in Millions)	2018		2017			2018		2017
Federal
Current	$	312	$	493		$	546	$	1,024
Deferred		17		(37	)		36		(157	)
Federal income tax		329		456			582		867
State
Current		62		81			154		146
Deferred		50		14			67		37
State income tax		112		95			221		183
Total income tax provision	$	441	$	551		$	803	$	1,050

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 June 30						Six Months Ended June 30
(Dollars in Millions)	2018			2017			2018			2017
Tax at statutory rate	$	462		$	722		$	891		$	1,417
State income tax, at statutory rates, net of federal tax benefit		96			67			185			130
Tax effect of
Tax credits and benefits, net of related expenses		(132	)		(197	)		(247	)		(390	)
Exam resolutions		–			–			(49	)		–
Tax-exempt income		(33	)		(51	)		(65	)		(100	)
Noncontrolling interests		(2	)		(4	)		(3	)		(9	)
Other items		50			14			91			2
Applicable income taxes	$	441		$	551		$	803		$	1,050