Morgan Stanley 2014 Annual Report Download - page 288

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
2013 were allocated according to participants’ current investment direction. Eligible U.S. employees with
eligible pay less than or equal to $100,000 also receive a fixed contribution under the 401(k) Plan that equals 2%
of eligible pay. A transition contribution is allocated to participants who received a 2010 accrual in the U.S.
Qualified Plan or a 2010 retirement contribution in the 401(k) Plan and who met certain age and service
requirements as of December 31, 2010. A separate transition contribution is allocated to certain eligible legacy
Smith Barney employees. The Company match, fixed contribution and transition contribution are included in the
Company’s 401(k) expense. The pre-tax 401(k) expense for 2014, 2013 and 2012 was $256 million, $242 million
and $246 million, respectively.
Defined Contribution Pension Plans. The Company maintains separate defined contribution pension plans that
cover substantially all employees of certain non-U.S. subsidiaries. Under such plans, benefits are determined
based on a fixed rate of base salary with certain vesting requirements. In 2014, 2013 and 2012, the Company’s
expense related to these plans was $117 million, $111 million and $126 million, respectively.
Other Postemployment Benefits. Postemployment benefits may include, but are not limited to, salary
continuation, severance benefits, disability-related benefits, and continuation of health care and life insurance
coverage provided to former employees or inactive employees after employment but before retirement. The
postemployment benefit obligations were not material at December 31, 2014 and December 31, 2013.
20. Income Taxes.
The provision for (benefit from) income taxes from continuing operations consisted of:
2014 2013 2012
(dollars in millions)
Current:
U.S. federal ......................................................... $(604) $ 229 $(102)
U.S. state and local ................................................... 260 164 140
Non-U.S.:
United Kingdom ................................................. 88 178 (16)
Japan .......................................................... 114 88 90
Hong Kong ..................................................... 34 36 16
Other(1) ........................................................ 258 301 355
$ 150 $ 996 $ 483
Deferred:
U.S. federal ......................................................... $(207) $ (3) $(748)
U.S. state and local ................................................... (56) 1 (64)
Non-U.S.:
United Kingdom ................................................. (31) (75) 77
Japan .......................................................... 56 262 170
Hong Kong ..................................................... 9 (14) 35
Other(1) ........................................................ (11) (265) (114)
$(240) $ (94) $(644)
Provision for (benefit from) income taxes from continuing operations ............... $ (90) $ 902 $(161)
Provision for (benefit from) income taxes from discontinued operations ............. $ (5) $ (29) $ (7)
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