Morgan Stanley 2015 Annual Report Download - page 59

(see “Investments, Other Revenues, Non-interest Expenses, Income Tax Items, Dispositions and Other Items—2014
Compared with 2013—Dispositions” herein).
Investments, Other Revenues, Non-interest Expenses, Income Tax Items, Dispositions and Other Items.
2015 Compared with 2014.
Investments.
• Net investment gains of $274 million in 2015 increased 14% from the prior year driven by gains on business related
investments.
Other.
• Other revenues of $221 million in 2015 decreased 68% from the prior year primarily due to the absence of gains
realized on certain assets sold in 2014 (see Note 1 to the consolidated financial statements in Item 8) and
markdowns and provisions on loans held for sale and held for investment, respectively.
Non-interest Expenses.
Non-interest expenses of $13,282 million in 2015 decreased 22% from the prior year driven by a 25% reduction in Non-
compensation expenses and a 17% reduction in Compensation and benefits expenses.
• Compensation and benefits expenses decreased primarily due to the 2014 compensation actions, a decrease in the
fair value of deferred compensation plan referenced investments, and a decrease in the level of discretionary
incentive compensation in 2015 (see also “Supplemental Financial Information and Disclosures—Discretionary
Incentive Compensation” herein).
• Non-compensation expenses decreased primarily due to lower litigation expenses.
Income Tax Items.
In 2015, the Company recognized in Provision for (benefit from) income taxes net discrete tax benefits of $564 million.
These net discrete tax benefits were primarily associated with the repatriation of non-U.S. earnings at a cost lower than
originally estimated due to an internal restructuring to simplify the Company’s legal entity organization in the U.K.
Dispositions.
On November 1, 2015, the Company completed the sale of its global oil merchanting unit of the commodities division to
Castleton Commodities International LLC. The loss on sale of approximately $71 million was recognized in Other revenues.
2014 Compared with 2013.
Investments.
• Net investment gains of $240 million in 2014 decreased 66% from the prior year reflecting a gain recorded in 2013
related to the disposition of an investment in an insurance broker, and lower gains on principal investments and
investments associated with the deferred compensation and co-investment plans in 2014.
Other.
• Other revenues of $684 million remained unchanged. The results in 2014 included lower income from the
Company’s 40% stake in Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“MUMSS”) compared with 2013
(see “Other Items—Japanese Securities Joint Venture” herein and Note 8 to the consolidated financial statements in
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