Morgan Stanley 2014 Annual Report Download - page 296

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
2012
Institutional
Securities(6)
Wealth
Management(2)(6)
Investment
Management(2)
Intersegment
Eliminations Total
(dollars in millions)
Total non-interest revenues ................. $12,847 $11,387 $2,324 $(175) $26,383
Interest income ........................... 4,224 1,886 10 (428) 5,692
Interest expense .......................... 5,970 326 28 (427) 5,897
Net interest .......................... (1,746) 1,560 (18) (1) (205)
Net revenues ..................... $11,101 $12,947 $2,306 $(176) $26,178
Income (loss) from continuing operations
before income taxes ..................... $(1,612) $ 1,572 $ 640 $ (4) $ 596
Provision for (benefit from) income taxes(5) . . . (985) 538 286 — (161)
Income (loss) from continuing operations ...... (627) 1,034 354 (4) 757
Discontinued operations(4):
Income (loss) from discontinued
operations ......................... (158) 94 13 3 (48)
Provision for (benefit from) income taxes . . . (36) 26 4 (1) (7)
Income (loss) from discontinued
operations ..................... (122) 68 9 4 (41)
Net income (loss) ......................... (749) 1,102 363 — 716
Net income applicable to redeemable
noncontrolling interests .............. 4 120 — — 124
Net income applicable to nonredeemable
noncontrolling interests .............. 170 167 187 — 524
Net income (loss) applicable to Morgan Stanley . . . $ (923) $ 815 $ 176 $ — $ 68
(1) The Company’s Institutional Securities business segment Net loss in 2014 was primarily driven by higher legal expenses (see Notes 13 and 25).
(2) On October 1, 2014, the Managed Futures business was transferred from the Company’s Wealth Management business segment to the
Company’s Investment Management business segment. All prior-period amounts have been recast to conform to the current year’s presentation.
(3) Amounts include discrete net tax benefits of $1,390 million and $839 million attributable to the Company’s Wealth Management and
Institutional Securities business segments, respectively (see Note 20).
(4) See Note 1 for discussion of discontinued operations.
(5) Results for 2012 included an out-of-period net tax provision of $107 million, attributable to the Company’s Investment Management business
segment, related to the overstatement of deferred tax assets associated with partnership investments in prior years and an out-of-period net tax
provision of $50 million, attributable to the Company’s Institutional Securities business segment, related to the overstatement of deferred tax
assets associated with repatriated earnings of a foreign subsidiary recorded in prior years (see Note 20).
(6) On January 1, 2013, the International Wealth Management business was transferred from the Company’s Wealth Management business
segment to the Equity division within the Company’s Institutional Securities business segment. Accordingly, prior-period amounts have been
recast to reflect the International Wealth Management business as part of the Company’s Institutional Securities business segment.
Total Assets(1)
Institutional
Securities
Wealth
Management(2)
Investment
Management(2)(3) Total
(dollars in millions)
At December 31, 2014 ......................... $630,341 $165,147 $6,022 $801,510
At December 31, 2013 ......................... $668,596 $156,503 $7,603 $832,702
(1) Corporate assets have been fully allocated to the Company’s business segments.
(2) On October 1, 2014, the Managed Futures business was transferred from the Company’s Wealth Management business segment to the
Company’s Investment Management business segment. All prior-period amounts have been recast to conform to the current year’s presentation.
(3) On April 1, 2014, the Company deconsolidated approximately $1.6 billion in total assets that were related to certain legal entities associated
with a real estate fund sponsored by the Company (see Note 7).
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