Citibank 2014 Annual Report Download - page 55

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The following chart presents the transition arrangements (phase-in and phase-out) under the Final Basel III Rules for significant regulatory capital
adjustments and deductions relative to Citi.
Basel III Transition Arrangements: Significant Regulatory Capital Adjustments and Deductions
January 1
2014 2015 2016 2017 2018
Phase-in of Significant Regulatory Capital Adjustments and Deductions
Common Equity Tier 1 Capital(1) 20% 40% 60% 80% 100%
Common Equity Tier 1 Capital(2) 20% 40% 60% 80% 100%
Additional Tier 1 Capital(2)(3) 80% 60% 40% 20% 0%
100% 100% 100% 100% 100%
Phase-out of Significant AOCI Regulatory Capital Adjustments
Common Equity Tier 1 Capital(4) 80% 60% 40% 20% 0%
(1) Includes the phase-in of Common Equity Tier 1 Capital deductions for all intangible assets other than goodwill and mortgage servicing rights (MSRs); and excess over 10%/15% limitations for deferred tax assets
(DTAs) arising from temporary differences, significant common stock investments in unconsolidated financial institutions and MSRs. Goodwill (including goodwill “embedded” in the valuation of significant common
stock investments in unconsolidated financial institutions) is fully deducted in arriving at Common Equity Tier 1 Capital commencing January 1, 2014. The amount of other intangible assets, aside from MSRs, not
deducted in arriving at Common Equity Tier 1 Capital are risk-weighted at 100%, as are the excess over the 10%/15% limitations for DTAs arising from temporary differences, significant common stock investments
in unconsolidated financial institutions and MSRs prior to full implementation of the Final Basel III Rules. Upon full implementation, the amount of temporary difference DTAs, significant common stock investments in
unconsolidated financial institutions and MSRs not deducted in arriving at Common Equity Tier 1 Capital are risk-weighted at 250%.
(2) Includes the phase-in of Common Equity Tier 1 Capital deductions related to DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards and defined benefit pension plan net
assets; and the phase-in of the Common Equity Tier 1 Capital adjustment for cumulative unrealized net gains (losses) related to changes in fair value of financial liabilities attributable to Citi’s own creditworthiness.
(3) To the extent Additional Tier 1 Capital is not sufficient to absorb regulatory capital adjustments and deductions, such excess is to be applied against Common Equity Tier 1 Capital.
(4) Includes the phase-out from Common Equity Tier 1 Capital of adjustments related to unrealized gains (losses) on available-for-sale (AFS) debt securities; unrealized gains on AFS equity securities; unrealized gains
(losses) on held-to-maturity (HTM) securities included in AOCI; and defined benefit plans liability adjustment.