Morgan Stanley 2015 Annual Report Download - page 95

Regulatory Capital Calculated under the U.S. Basel III Advanced Approach Transitional Rules.
At December 31, 2015 At December 31, 2014
(dollars in millions)
Common Equity Tier 1 capital:
Common stock and surplus .............................................. $ 20,114 $ 21,503
Retained earnings ..................................................... 49,204 44,625
Accumulated other comprehensive income (loss) ............................ (1,656) (1,248)
Regulatory adjustments and deductions:
Net goodwill ..................................................... (6,582) (6,612)
Net intangible assets (other than goodwill and mortgage servicing assets) ..... (1,192) (632)
Credit spread premium over risk-free rate for derivative liabilities ........... (202) (161)
Net deferred tax assets ............................................. (675) (580)
Net after-tax debt valuation adjustment ................................ 156 158
Adjustments related to accumulated other comprehensive income ........... 411 462
Expected credit loss over eligible credit reserves ......................... — (10)
Other adjustments and deductions .................................... (169) (181)
Total Common Equity Tier 1 capital ...................................... $ 59,409 $ 57,324
Additional Tier 1 capital:
Preferred stock ....................................................... $ 7,520 $ 6,020
Trust preferred securities ............................................... 702 2,434
Nonredeemable noncontrolling interests ................................... 678 1,004
Regulatory adjustments and deductions:
Net deferred tax assets ............................................. (1,012) (2,318)
Credit spread premium over risk-free rate for derivative liabilities ........... (303) (644)
Net after-tax debt valuation adjustment ................................ 233 630
Expected credit loss over eligible credit reserves ......................... — (39)
Other adjustments and deductions .................................... (253) (229)
Additional Tier 1 capital ................................................ $ 7,565 $ 6,858
Deduction for investments in covered funds ................................ (252) —
Total Tier 1 capital .................................................... $ 66,722 $ 64,182
Tier 2 capital:
Subordinated debt ..................................................... $ 10,404 $ 8,339
Trust preferred securities ............................................... 2,106 2,434
Other qualifying amounts ............................................... 35 27
Regulatory adjustments and deductions .................................... 136 (10)
Total Tier 2 capital .................................................... $ 12,681 $ 10,790
Total capital ......................................................... $ 79,403 $ 74,972
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