Citibank 2013 Annual Report Download - page 68

50
Citigroup Capital Rollforward Under Basel III
In millions of dollars
Three Months Ended
December 31, 2013
Twelve Months Ended
December 31, 2013
Tier 1 Common Capital
Balance, beginning of period $121,691 $105,396
Net income 2,456 13,673
Dividends declared (100) (314)
Net increase in treasury stock (186) (811)
Net change in additional paid-in capital (1)(2) 197 895
Net change in accumulated other comprehensive losses, net of tax (335) (2,237)
Net change in accumulated net unrealized losses on cash flow hedges, net of tax (3) (96) (1,048)
Net decrease in cumulative change in fair value of financial liabilities attributable
to the change in own creditworthiness, net of tax 162 410
Net decrease in goodwill, net of related DTL (4) 203 970
Net decrease in other intangible assets other than mortgage servicing rights (MSRs), net of related DTL 16 682
Net increase in defined benefit pension plan net assets (171) (393)
Net decrease in deferred tax assets (DTAs) arising from net operating loss, foreign tax credit and general business
credit carryforwards 1,535 2,361
Net change in excess over 10%/15% limitations for other DTAs, certain common stock investments and MSRs (5) 215 6,001
Other 10 12
Net increase in Tier 1 Common Capital $ 3,906 $ 20,201
Balance, end of period $125,597 $125,597
Tier 1 Capital
Balance, beginning of period $128,054 $109,125
Net increase in Tier 1 Common Capital 3,906 20,201
Net increase in qualifying perpetual preferred stock (2) 1,461 4,083
Net decrease in qualifying trust preferred securities (2) (3)
Other (7) 6
Net increase in Tier 1 Capital $ 5,358 $ 24,287
Balance, end of period $133,412 $133,412
Tier 2 Capital
Balance, beginning of period $ 17,990 $ 21,446
Net change in qualifying subordinated debt (349) 467
Net change in qualifying trust preferred securities — (1,837)
Net change in excess of eligible credit reserves over expected credit losses (998) (3,446)
Other (6) 7
Net decrease in Tier 2 Capital $ (1,353) $ (4,809)
Balance, end of period $ 16,637 $ 16,637
Total Capital (Tier 1 Capital + Tier 2 Capital) $150,049 $150,049
(1) Primarily represents an increase in additional paid-in capital related to employee benefit plans.
(2) Citi issued approximately $1.5 billion and approximately $4.3 billion of qualifying perpetual preferred stock during the three months and twelve months ended December 31, 2013, respectively. These issuances were
partially offset by both redemptions and the netting of issuance costs, which in the aggregate were $34 million and $187 million for the three months and twelve months ended December 31, 2013, respectively. For
U.S. GAAP purposes, issuance costs of $34 million and $93 million for the three months and twelve months ended December 31, 2013, respectively, were netted against additional paid-in capital.
(3) Tier 1 Common Capital is adjusted for accumulated net unrealized gains (losses) on cash flow hedges included in AOCI that relate to the hedging of items not recognized at fair value on the balance sheet.
(4) Includes goodwill “embedded” in the valuation of significant common stock investments in unconsolidated financial institutions.
(5) Aside from MSRs, reflects DTAs arising from temporary differences and significant common stock investments in unconsolidated financial institutions.