Board of Governors of the Federal Reserve System

Data Dictionary

Item Number L137

Call confidentiality applies to FFIEC 031/041.

Data Description:

Based on the capital guidelines of the reporting institution's primary federal supervisory authority, report the amount of any additions to or deductions from total assets for leverage capital purposes that are not included in Schedule RC-R, items 23 through 25, above. If the amount to be reported in this item is a net deduction from assets, enclose the amount in parentheses.

Include as a deduction the amount of any other assets that are deducted in determining Tier 1 capital in accordance with the capital standards issued by the reporting institution's primary federal supervisory authority. Include the amount of any disallowed credit-enhancing interest-only strips from Schedule RC-R, item 10, above. Also include the adjusted carrying value of any nonfinancial equity investments for which a Tier 1 capital deduction is included in Schedule RC-R, item 10, above.

Savings associations should include in this item the net unrealized gains (losses) on available-for-sale securities reported in Schedule RC-R, item 2. If net unrealized gains are reported in item 2, include the amount of these gains as a deduction from total assets. If net unrealized losses are reported in item 2, include the amount of these losses as an addition to total assets. In addition, savings associations that report a net unrealized loss on available for-sale equity securities in Schedule RC-R, item 3, should include the amount of this loss as a deduction from total assets in this item. The combined effect of these adjustments is to treat net unrealized gains (losses) on available-for-sale debt securities as a deduction from (addition to) total assets for leverage capital purposes and net unrealized gains on available for-sale equity securities as a deduction from total assets for leverage capital purposes (because such gains (losses) - which are also reported as a component of Schedule RC, (cont.) item 26.b, "Accumulated other comprehensive income" - are excluded from Tier 1 capital) while not adjusting total assets for net unrealized losses on available-for-sale equity securities (because such losses are deducted from Tier 1 capital).

Savings associations should include in this item the amount included in total assets for the gains (losses) on derivative instruments with positive fair values (i.e., derivative assets) designated and qualifying as cash flow hedges that is also reflected in Schedule RC-R, item 4, "Accumulated net gains (losses) on cash flow hedges." Do not include any amounts associated with derivative instruments with negative fair values (i.e., derivative liabilities). If the amount included in total assets represents net gains on derivative assets, include this amount as a deduction from total assets. If the amount included in total assets represents net losses on derivative assets, include this amount as an addition to total assets.

Savings associations with includable subsidiaries should include as an addition to total assets the prorated assets of any includable subsidiary in which the association has a minority ownership interest that is not consolidated under generally accepted accounting principles in Schedule RC - Balance Sheet.

Savings associations with nonincludable subsidiaries should include as a deduction from total assets the entire amount of the assets of these subsidiaries that are included in assets on Schedule RC - Balance Sheet, but are deducted from assets for leverage capital purposes. For consolidated subsidiaries, this amount should equal the total assets of the subsidiary less any assets eliminated in consolidation. For subsidiaries accounted for under the equity method, this amount should equal the association's investment in the subsidiary plus all advances to the subsidiary.

Banks with financial subsidiaries should exclude from this item adjustments to average total assets for the deconsolidation of such subsidiaries. Adjustments to average total assets for financial subsidiaries should be reported in Schedule RC-R, item 30.