
Note 12		Income Taxes

The components of income tax expense were:


	Three Months Ended March 31
(Dollars in Millions)	2019		2018
Federal
Current	$	220	$	234
Deferred		116		19
Federal income tax		336		253
State
Current		30		92
Deferred		12		17

State income tax		42		109
Total income tax provision	$	378	$	362

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)	2019			2018
Tax at statutory rate	$	438		$	429
State income tax, at statutory rates, net of federal tax benefit		84			89
Tax effect of
Tax credits and benefits, net of related expenses		(103	)		(115	)
Exam resolutions		(49	)		(49	)
Tax-exempt income		(32	)		(32	)
Noncontrolling interests		(2	)		(1	)
Other items		42			41
Applicable income taxes	$	378		$	362

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, 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 $495 million at March 31, 2019 and $809 million at December 31, 2018.