Citibank 2015 Annual Report Download - page 58

40
Citigroup Capital Rollforward Under Current Regulatory Standards
(Basel III Advanced Approaches with Transition Arrangements)
In millions of dollars
Three Months Ended
December 31, 2015
Twelve Months Ended
December 31, 2015 (1)
Common Equity Tier 1 Capital
Balance, beginning of period $173,345 $166,663
Net income 3,335 17,242
Dividends declared (415) (1,253)
Treasury stock acquired (1,650) (5,452)
Net increase in additional paid-in capital (2) 331 1,036
Net increase in foreign currency translation adjustment net of hedges, net of tax (796) (5,499)
Net increase in unrealized losses on securities AFS, net of tax (3) (453) (374)
Net increase in defined benefit plans liability adjustment, net of tax (3) (34) (1,014)
Net change in cumulative unrealized net gain related to changes in fair value of
financial liabilities attributable to own creditworthiness, net of tax 111 (120)
Net change in goodwill, net of related deferred tax liabilities (DTLs) (248) 825
Net change in identifiable intangible assets other than mortgage servicing rights (MSRs),
net of related DTLs 130 (559)
Net change in defined benefit pension plan net assets 44 (131)
Net increase in deferred tax assets (DTAs) arising from net operating loss, foreign
tax credit and general business credit carry-forwards (146) (4,739)
Net change in excess over 10%/15% limitations for other DTAs, certain common stock
investments and MSRs 312 (675)
Net decrease in regulatory capital deduction applied to Common Equity Tier 1 Capital
due to insufficient Additional Tier 1 Capital to cover deductions — 8,082
Other (4) (170)
Net increase in Common Equity Tier 1 Capital $ 571 $ 7,199
Common Equity Tier 1 Capital Balance, end of period $173,862 $173,862
Additional Tier 1 Capital
Balance, beginning of period $ 931 $ —
Net increase in qualifying perpetual preferred stock (4) 1,495 6,227
Net decrease in qualifying trust preferred securities (9) (12)
Net change in cumulative unrealized net gain related to changes in fair value of
financial liabilities attributable to own creditworthiness, net of tax 165 (42)
Net decrease in defined benefit pension plan net assets 66 273
Net change in DTAs arising from net operating loss, foreign tax credit and general
business credit carry-forwards (218) 4,706
Net change in permitted ownership interests in covered funds 111 (567)
Net decrease in regulatory capital deduction applied to Common Equity Tier 1 Capital
due to insufficient Additional Tier 1 Capital to cover deductions — (8,082)
Other 17 55
Net increase in Additional Tier 1 Capital $ 1,627 $ 2,558
Tier 1 Capital Balance, end of period $176,420 $176,420
Tier 2 Capital
Balance, beginning of period $ 21,353 $ 18,296
Net increase in qualifying subordinated debt 349 3,984
Net change in excess of eligible credit reserves over expected credit losses 606 (14)
Other 18 60
Net increase in Tier 2 Capital $ 973 $ 4,030
Tier 2 Capital Balance, end of period $ 22,326 $ 22,326
Total Capital (Tier 1 Capital + Tier 2 Capital) $198,746 $198,746
(1) The beginning balance of Common Equity Tier 1 Capital for the twelve months ended December 31, 2015 has been restated to reflect the retrospective adoption of ASU 2014-01 for LIHTC investments, consistent with
current period presentation.
(2) Primarily represents an increase in additional paid-in capital related to employee benefit plans.
(3) Presented net of impact of transition arrangements related to unrealized gains (losses) on securities AFS and defined benefit plans liability adjustment under the U.S. Basel III rules.
(4) Citi issued approximately $1.5 billion and approximately $6.3 billion of qualifying perpetual preferred stock during the three and twelve months ended December 31, 2015, respectively, which were partially offset by
the netting of issuance costs of $4 million and $23 million during those respective periods.