Statement of Financial Condition
UBS Securities LLC
Notes to the Statement of Financial Condition (continued)
(In Thousands)
15. Net Capital Requirements and Other Regulatory Matters (continued)
The Company's ratio of net capital to aggregate debit items was 43%. At December 31, 2021, the
Company was in compliance with net capital, customer reserve and CFTC requirements under
various regulations for which it is subject as a registered broker-dealer."
Advances to affiliates, repayment of subordinated liabilities, dividend payments and other equity
withdrawals are subject to certain notification and other provisions of the net capital rule of the
SEC and other regulatory bodies.
The Company is also subject to certain conditions imposed by the Federal Reserve Board,
including limitations on certain activities with affiliates.
16. Income Taxes
Deferred tax assets and liabilities are determined based on the difference between the financial
statement and tax bases of assets and liabilities using enacted tax rates expected to be in effect
during the year in which the basis differences reverse.
The Company recognizes deferred tax assets to the extent it is more likely than not to be realized.
In making such a determination, Management considers all available positive and negative
evidence, including history of earnings, possible tax planning strategies and future taxable income,
supported through detailed projections.
After consideration of all relevant evidence, the Company believes that it is more likely than not
that a benefit will not be realized for a portion of its deferred tax assets, and accordingly, a
valuation allowance of $452,545 has been recorded. Since December 31, 2020, the valuation
allowance decreased by $76,361.
The components of the Company's deferred tax assets and liabilities as of December 31, 2021
were as follows:
Net Operating Loss Carry forwards
Capitalized Expenditures
Employee Benefits
Other Deferred Tax Assets
Total Deferred Tax Assets
Less: Valuation Allowance
Deferred Tax Assets Net of Valuation Allowance
Less: Deferred Tax Liabilities
Total Net Deferred Tax Assets
$
754,156
74,852
14,104
2,929
846,041
(452,545)
393,496
(3,510)
389,986
At December 31, 2021 the Company had UBT, Tennessee, & Illinois net operating loss
carryforwards of $19,403,341 that will begin to expire in 2023.
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