Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 5610

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes the amount of deferred tax assets (included in Schedule RC-F, item 2148 for the FFIEC 031-034 reports and in Schedule HC-G, item 2747 or 2748 for the FR Y-9C report) that are dependent upon future taxable income, net of any valuation allowance for deferred tax assets (included in item 2148 for the FFIEC 031-034 reports and in item 2747 or 2748 for the FR Y-9C report), that exceeds the lesser of: (1) The amount of deferred tax assets that are dependent upon future Taxable income that is expected to be realized within one year of the quarter-end report date, based on the reporting entity's projected future taxable income for that year; or (2) Ten percent of the amount of the reporting entity's Tier 1 capital net of goodwill and all identifiable assets other than mortgage servicing rights, purchased credit card relationships (and before any disallowed deferred tax assets are deducted). Under the federal banking agencies' regulatory capital standards, deferred tax assets in excess of the preceding limit are deducted from an entity's Tier 1 (core) capital, from its total assets, as defined, for leverage capital purposes, and are not included in its risk-weighed assets for risk-based capital purposes. An entity may calculate one overall limit on deferred tax assets that covers all tax jurisdictions in which the entity operates. Deferred tax assets that are dependent upon future taxable income are (a) deferred tax assets arising from deductible temporary differences that exceeds the amount of taxes previously paid that an entity could recover through loss carrybacks if the entity's temporary differences (both deductible and taxable) fully reverse at the report date and (b) deferred tax assets arising from operating loss and tax credit carryforwards. Therefore, for purposes of this item, all temporary differences should be assumed to fully reverse at the report date. When the amount to be reported in this item is determined, each reporting bank's calculations is made on a separate entity basis. Under the separate entity method, a bank (together with its consolidated subsidiaries) that is a subsidiary of a holding company is treated as a separate taxpayer rather than as part of the consolidated group of which it is a member. Deferred tax assets which can be realized from taxes paid in prior carryback years and from future reversals of existing taxable temporary differences should generally not be reported in this item. However, for a bank that is a subsidiary of a holding company, the parent holding company may not have the financial capability to reimburse the reporting bank for tax benefits derived from the bank's carryback of net operating losses or tax credits. In such a situation, when determining the amount of deferred tax assets that are dependent upon future taxable income, the amount of carryback potential the bank may consider as being available for the realization of its deferred tax assets shall be limited to the amount which the bank could reasonably expect to have refunded by its parent. Treatment of deferred tax assets relating to available-for-sale securities -- In accordance with FASB Statement No. 115, "Accounting for Certain Investments in Debt and Equity Securities," available-for-sale securities are reported in the Reports of Condition and Income at fair value, with unrealized holding gains and loses on such securities, net of tax effects, included in a separate component of equity capital. These tax effects may increase or decrease the reported amount of an entity's deferred tax assets. The federal banking agencies excludes from regulatory capital the amount of net unrealized holding gains and losses on available-for-sale securities (except net unrealized holding losses on available-for-sale equity securities with readily determinable fair values). When determining the regulatory capital limit for deferred tax assets, an entity may, but is required to, adjust the amount of its deferred tax assets for any deferred tax assets and liabilities arising from marking-to-market available-for-sale debt securities for purposes of these reports. An entity must follow a consistent approach with respect to such adjustments. For further information on temporary differences, deferred tax assets, and the separate entity method, refer to the Glossary entry for "income taxes" in the Report of Condition and Income Instruction Booklet. For information about the optional treatment of a deferred tax liability that is specifically related to an intangible asset (other than mortgage servicing rights and purchased credit card relationships) acquired in a nontaxable purchase business combination, refer to the instruction for Schedule RC-M, or Schedule HC-I, Part I, item 6442. NOTE: FFIEC 101 -- Report in this item the amount reported on Schedule R of the Call Report (FFIEC 031 or 041) or the BHC FR Y-9C Beginning 3/31/01, reported on Schedule RC-R Regulatory Capital for the FFIEC 031 and 041 reports. Report the amount of disallowed deferred tax assets from Schedule RC-R, item 9.a. Reported on Schedule HC-R for the FR Y-9C (BHCK) report. Report the amount of any disallowed deferred tax assets from Schedule HC-R, item 9. Prior to 3/31/01, reported on Schedule HC-G (BHCK), for the FR Y-9C report. Reported on Schedule RC-F (RCFD and RCON), for the FFIEC 031, 032, 033, and 034 reports. For the UBPR series, the FDIC's Data Element name is H-DISSDEFTX BAGR Original Variable name: DEFTAX Formula: DEFTAX=IF DT ge 20010331 THEN DEFTAX = RCFD5610/1000;