Morgan Stanley 2014 Annual Report Download - page 74

Sales and trading net revenues were as follows:
2014 2013 2012
(dollars in millions)
Trading(1) ......................................................... $ 8,445 $ 8,147 $ 6,003
Commissions and fees ................................................ 2,610 2,425 2,175
Asset management, distribution and administration fees ..................... 281 280 241
Net interest ......................................................... (592) (1,101) (1,746)
Total sales and trading net revenues ................................. $10,744 $ 9,751 $ 6,673
Sales and trading net revenues by business were as follows:
2014 2013 2012
(dollars in millions)
Equity(1) ............................................................ $ 7,135 $6,529 $4,811
Fixed income and commodities(1) ........................................ 4,214 3,594 2,358
Other(2) ............................................................ (605) (372) (496)
Total sales and trading net revenues .................................. $10,744 $9,751 $6,673
(1) Results in 2014 included a charge of $468 million related to the implementation of FVA (Equity: $2 million; Fixed income and
commodities: $466 million).
(2) Amounts include net losses associated with costs related to the amount of liquidity held (“negative carry”), net gains (losses) on
economic hedges related to the Company’s long-term borrowings, and revenues from corporate loans and lending commitments.
The following sales and trading net revenues results exclude the impact of DVA. The reconciliation of sales and
trading, including equity sales and trading and fixed income and commodities sales and trading net revenues,
from a non-GAAP to a GAAP basis is as follows:
2014 2013 2012
(dollars in millions)
Total sales and trading net revenues—non-GAAP(1) ....................... $10,093 $10,432 $11,075
Impact of DVA ..................................................... 651 (681) (4,402)
Total sales and trading net revenues(2) .............................. $10,744 $ 9,751 $ 6,673
Equity sales and trading net revenues—non-GAAP(1) ...................... $ 6,903 $ 6,607 $ 5,941
Impact of DVA ..................................................... 232 (78) (1,130)
Equity sales and trading net revenues(2) ............................. $ 7,135 $ 6,529 $ 4,811
Fixed income and commodities sales and trading net revenues
—non-GAAP(1) ................................................ $ 3,795 $ 4,197 $ 5,630
Impact of DVA ..................................................... 419 (603) (3,272)
Fixed income and commodities sales and trading net revenues(2) ......... $ 4,214 $ 3,594 $ 2,358
(1) Sales and trading net revenues, including equity and fixed income and commodities sales and trading net revenues that exclude the
impact of DVA, are non-GAAP financial measures that the Company considers useful for the Company and investors to allow further
comparability of period-to-period operating performance.
(2) Results in 2014 included a charge of $468 million related to the implementation of FVA (Equity: $2 million; Fixed income and
commodities: $466 million).
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