Morgan Stanley 1999 Annual Report Download - page 91

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page 89 |99 AR
The Company operates in both U.S. and non-U.S. markets. The
Company’s non-U.S. business activities are principally conducted
through European and Asian locations. The following table presents
selected income statement information and the total assets of the
Company’s operations by geographic area. The principal method-
ologies used in preparing the geographic area data are as follows:
commission revenues are recorded based on the location of the
sales force; trading revenues are principally recorded based on
location of the trader; investment banking revenues are based on
location of the client; and asset management and portfolio service
fees are recorded based on the location of the portfolio manager.
FISCAL 1999
(dollars in millions) U.S. EUROPE ASIA OTHER ELIMINATIONS TOTAL
Net revenues $ 17,430 $ 3,741 $ 1,203 $ (42) $ (323) $ 22,009
Income before taxes 6,297 1,275 250 (94) — 7,728
Total assets 364,852 164,410 37,626 17,698 (217,619) 366,967
FISCAL 1998
(dollars in millions) U.S. EUROPE ASIA OTHER ELIMINATIONS TOTAL
Net revenues $ 12,837 $ 2,787 $ 1,023 $ 95 $ (298) $ 16,444
Income before taxes and cumulative
effect of accounting change 3,955 1,089 287 54 — 5,385
Total assets 328,450 139,923 25,712 9,138 (185,633) 317,590
FISCAL 1997
(dollars in millions) U.S. EUROPE ASIA OTHER ELIMINATIONS TOTAL
Net revenues $ 12,464 $ 1,757 $ 866 $ 55 $ (309) $ 14,833
Income before taxes 3,617 399 240 18 — 4,274
Total assets 298,923 126,138 30,656 8,805 (162,235) 302,287
In the fourth quarter of fiscal 1998, the Company com-
pleted the sale of its Global Custody business. The Company also
sold its interest in the operations of SPS Transaction Services, Inc.,
a 73%-owned, publicly held subsidiary of the Company. In addi-
tion, the Company sold certain credit card receivables relating to its
discontinued BRAVO®Card. The Company’s aggregate net pre-tax
gain resulting from these transactions was $685 million.
In addition, during fiscal 1998 the Company sold its
Prime OptionSM MasterCard®portfolio, a business it had operated
with NationsBank of Delaware, N.A., and its Correspondent
Clearing business. The gains resulting from the sale of these busi-
nesses were not material to the Company’s results of operations or
financial condition.
16 BUSINESS ACQUISITION AND DISPOSITIONS
During the second quarter of fiscal 1999, the Company completed
its acquisition of AB Asesores, the largest independent financial
services firm in Spain. AB Asesores has leading positions in per-
sonal investment, asset management, institutional research and
brokerage, and investment banking. Through its approximately 300
financial advisors, it offers its individual investors proprietary
mutual funds and other financial products. This acquisition
reflects the Company’s strategic initiative to build international
Securities and Asset Management businesses to serve the needs of
individual investors. The Company’s fiscal 1999 results include the
operations of AB Asesores since March 25, 1999, the date of
acquisition.
In fiscal 1998, the Company entered into several transac-
tions reflecting its strategic decision to focus on growing its core
Asset Management and Credit Services businesses.