Morgan Stanley 2014 Annual Report Download - page 161

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Introduction and Basis of Presentation.
The Company. Morgan Stanley, a financial holding company, is a global financial services firm that maintains
significant market positions in each of its business segments—Institutional Securities, Wealth Management and
Investment Management. The Company, through its subsidiaries and affiliates, provides a wide variety of
products and services to a large and diversified group of clients and customers, including corporations,
governments, financial institutions and individuals. Unless the context otherwise requires, the terms “Morgan
Stanley” or the “Company” mean Morgan Stanley (the “Parent”) together with its consolidated subsidiaries.
A brief summary of the activities of each of the Company’s business segments is as follows:
Institutional Securities provides financial advisory and capital raising services, including: advice on mergers
and acquisitions, restructurings, real estate and project finance; corporate lending; sales, trading, financing
and market-making activities in equity and fixed income securities and related products, including foreign
exchange and commodities; and investment activities.
Wealth Management provides brokerage and investment advisory services to individual investors and small-
to-medium sized businesses and institutions covering various investment alternatives; financial and wealth
planning services; annuity and other insurance products; credit and other lending products; cash
management services; and retirement services; and engages in fixed income trading, which primarily
facilitates clients’ trading or investments in such securities.
Investment Management provides a broad array of investment strategies that span the risk/return spectrum
across geographies, asset classes and public and private markets to a diverse group of clients across the
institutional and intermediary channels as well as high net worth clients.
Global Oil Merchanting Business, CanTerm and TransMontaigne.
On December 20, 2013, the Company and a subsidiary of Rosneft Oil Company (“Rosneft”) entered into a
Purchase Agreement pursuant to which the Company would sell the global oil merchanting unit of its
commodities division (the “global oil merchanting business”) to Rosneft. On December 22, 2014, the Company
announced the termination of the sale due to the expiration of the Purchase Agreement on December 20, 2014.
On March 27, 2014, the Company completed the sale of Canterm Canadian Terminals Inc. (“CanTerm”), a
public storage terminal operator for refined products with two distribution terminals in Canada. As a result of the
Company’s level of continuing involvement with CanTerm, the results of CanTerm are reported as a component
of continuing operations within the Company’s Institutional Securities business segment for all periods
presented. The gain on sale was approximately $45 million.
On July 1, 2014, the Company completed the sale of its ownership stake in TransMontaigne Inc., a U.S.-based oil
storage, marketing and transportation company, as well as related physical inventory and the assumption of the
Company’s obligations under certain terminal storage contracts, to NGL Energy Partners LP. The gain on sale,
which was included in continuing operations within the Company’s Institutional Securities business segment,
was approximately $112 million for 2014.
Discontinued Operations.
Quilter. On April 2, 2012, the Company completed the sale of Quilter & Co. Ltd. (“Quilter”), its retail wealth
management business in the United Kingdom (“U.K.”). Net revenues for Quilter were $148 million for 2012. Net
pre-tax gains (losses) were $(1) million and $97 million for 2013 and 2012, respectively, and included a gain of
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