Morgan Stanley 2015 Annual Report Download - page 96

Roll-forward of Regulatory Capital Calculated under the U.S. Basel III Advanced Approach Transitional Rules.
2015
(dollars in millions)
Common Equity Tier 1 capital:
Common Equity Tier 1 capital at December 31, 2014 ........................................... $ 57,324
Change related to the following items:
Value of shareholders’ common equity ................................................... 2,782
Net goodwill ....................................................................... 30
Net intangible assets (other than goodwill and mortgage servicing assets) ....................... (560)
Credit spread premium over risk-free rate for derivative liabilities ............................. (41)
Net deferred tax assets ................................................................ (95)
Net after-tax debt valuation adjustment .................................................. (2)
Adjustments related to accumulated other comprehensive income ............................. (51)
Expected credit loss over eligible credit reserves ........................................... 10
Other deductions and adjustments ....................................................... 12
Common Equity Tier 1 capital at December 31, 2015 ........................................... $ 59,409
Additional Tier 1 capital:
Additional Tier 1 capital at December 31, 2014 ................................................ $ 6,858
New issuance of qualifying preferred stock ................................................... 1,500
Change related to the following items:
Trust preferred securities .............................................................. (1,732)
Nonredeemable noncontrolling interests .................................................. (326)
Net deferred tax assets ................................................................ 1,306
Credit spread premium over risk-free rate for derivative liabilities ............................. 341
Net after-tax debt valuation adjustment .................................................. (397)
Expected credit loss over eligible credit reserves ........................................... 39
Other adjustments and deductions ....................................................... (24)
Additional Tier 1 capital at December 31, 2015 ................................................ $ 7,565
Deduction for investments in covered funds ................................................... (252)
Tier 1 capital at December 31, 2015 ......................................................... $ 66,722
Tier 2 capital:
Tier 2 capital at December 31, 2014 ......................................................... $ 10,790
Change related to the following items:
Subordinated debt ................................................................... 2,065
Trust preferred securities .............................................................. (328)
Nonredeemable noncontrolling interests .................................................. 8
Other adjustments and deductions ....................................................... 146
Tier 2 capital at December 31, 2015 ......................................................... $ 12,681
Total capital at December 31, 2015 .......................................................... $ 79,403
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