Morgan Stanley 2014 Annual Report Download - page 270

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Series I Preferred Stock. On September 18, 2014, the Company issued 40,000,000 Depositary Shares, for an
aggregate price of $1,000 million. Each Depositary Share represents a 1/1,000th interest in a share of perpetual
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I, $0.01 par value (“Series I Preferred Stock”).
The Series I Preferred Stock is redeemable at the Company’s option (i) in whole or in part, from time to time, on
any dividend payment date on or after October 15, 2024 or (ii) in whole but not in part at any time within 90 days
following a regulatory capital treatment event (as described in the terms of that series), in each case at a
redemption price of $25,000 per share (equivalent to $25.00 per Depository Share). The Series I Preferred Stock
also has a preference over the Company’s common stock upon liquidation. The Series I Preferred Stock offering
(net of related issuance costs) resulted in proceeds of approximately $994 million. In December 2014, the
Company declared the initial quarterly dividend of $517.97 per share of Series I Preferred Stock that was paid on
January 15, 2015 to preferred shareholders of record on December 31, 2014.
Accumulated Other Comprehensive Loss.
The following tables present changes in AOCI by component, net of noncontrolling interests, in 2014 and 2013
(dollars in millions):
Foreign
Currency
Translation
Adjustments
Net
Change in
Cash Flow
Hedges
Change in
Net Unrealized
Gains (Losses) on
AFS Securities
Pension,
Postretirement
and Other Related
Adjustments Total
Balance at December 31, 2013 ......... $(266) $ (1) $(282) $(544) $(1,093)
Other comprehensive income before
reclassifications ............... (397) — 233 24 (140)
Amounts reclassified from AOCI . . . — 4 (24) 5 (15)
Net other comprehensive income during
the period ........................ (397) 4 209 29 (155)
Balance at December 31, 2014 ......... $(663) $ 3 $ (73) $(515) $(1,248)
Foreign
Currency
Translation
Adjustments
Net
Change in
Cash Flow
Hedges
Change in
Net Unrealized
Gains (Losses) on
AFS Securities
Pension,
Postretirement
and Other Related
Adjustments Total
Balance at December 31, 2012 ......... $(123) $ (5) $ 151 $(539) $ (516)
Other comprehensive income (loss)
before reclassifications ......... (143) — (406) (16) (565)
Amounts reclassified from AOCI . . . — 4 (27) 11 (12)
Net other comprehensive income (loss)
during the period .................. (143) 4 (433) (5) (577)
Balance at December 31, 2013 ......... $(266) $ (1) $(282) $(544) $(1,093)
The Company had no significant reclassifications out of AOCI for 2014 and 2013.
Cumulative Foreign Currency Translation Adjustments. Cumulative foreign currency translation adjustments
include gains or losses resulting from translating foreign currency financial statements from their respective
functional currencies to U.S. dollars, net of hedge gains or losses and related tax effects. The Company uses
foreign currency contracts to manage the currency exposure relating to its net investments in non-U.S. dollar
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