Morgan Stanley 2014 Annual Report Download - page 297

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Geographic Information.
The Company operates in both U.S. and non-U.S. markets. The Company’s non-U.S. business activities are
principally conducted and managed through European and Asia-Pacific locations. The net revenues disclosed in
the following table reflect the regional view of the Company’s consolidated net revenues on a managed basis,
based on the following methodology:
• Institutional Securities: advisory and equity underwriting—client location, debt underwriting—revenue
recording location, sales and trading—trading desk location.
• Wealth Management: wealth management representatives operate in the Americas.
• Investment Management: client location, except for Merchant Banking and Real Estate Investing
businesses, which are based on asset location.
Net Revenues 2014 2013 2012
(dollars in millions)
Americas .......................................................... $25,140 $23,358 $20,276
EMEA ............................................................ 4,772 4,542 3,078
Asia-Pacific ....................................................... 4,363 4,593 2,824
Net revenues ................................................... $34,275 $32,493 $26,178
Total Assets
At December 31,
2014
At December 31,
2013
(dollars in millions)
Americas ........................................................ $622,556 $632,255
EMEA .......................................................... 104,152 123,008
Asia-Pacific ...................................................... 74,802 77,439
Total ........................................................ $801,510 $832,702
22. Equity Method Investments.
The Company has investments accounted for under the equity method of accounting (see Note 1) of $3,332 million
and $4,746 million at December 31, 2014 and December 31, 2013, respectively, included in Other investments in
the Company’s consolidated statements of financial condition. Income from equity method investments was $156
million, $451 million and $52 million for 2014, 2013 and 2012, respectively, and is included in Other revenues in
the Company’s consolidated statements of income. Income from the Company’s equity method investments for
2014, 2013 and 2012 was primarily related to the Company’s 40% stake in Mitsubishi UFJ Morgan Stanley
Securities Co., Ltd. (“MUMSS”), as described below.
The following presents certain equity method investees at December 31, 2014 and December 31, 2013:
Book Value(1)
Percent
Ownership
December 31,
2014
December 31,
2013
(dollars in millions)
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. ................. 40% $1,415 $1,610
Lansdowne Partners(2) ........................................ 19.5% 182 221
Avenue Capital Group(2)(3) .................................... — 220 198
(1) Book value of these investees exceeds the Company’s share of net assets, reflecting equity method intangible assets and equity method
goodwill.
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