Morgan Stanley 2014 Annual Report Download - page 298

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(2) The Company’s ownership interest represents limited partnership interests. The Company is deemed to have significant influence in
these limited partnerships, as the Company’s limited partnership interests were above the 3% to 5% threshold for interests that should be
accounted for under the equity method.
(3) The Company’s ownership interest represents limited partnership interests in a number of different entities within the Avenue Capital Group.
Japanese Securities Joint Venture.
The Company holds a 40% voting interest and MUFG holds a 60% voting interest in MUMSS. The Company
accounts for its interest in MUMSS as an equity method investment within the Company’s Institutional
Securities business segment. During 2014, 2013 and 2012, the Company recorded income of $224 million, $570
million and $152 million, respectively, within Other revenues in the Company’s consolidated statements of
income, arising from the Company’s 40% stake in MUMSS.
In June 2014 and June 2013, MUMSS paid a dividend of approximately $594 million and $287 million,
respectively, of which the Company received approximately $238 million and $115 million, respectively, for its
proportionate share of MUMSS.
The following presents summarized financial data for MUMSS:
At December 31,
2014 2013
(dollars in millions)
Total assets .............................................................. $111,053 $118,108
Total liabilities ........................................................... 108,263 114,648
Noncontrolling interests .................................................... 37 13
2014 2013 2012
(dollars in millions)
Net revenues .......................................................... $2,961 $3,305 $2,365
Income from continuing operations before income taxes ....................... 908 1,325 333
Net income ........................................................... 595 1,459 405
Net income applicable to MUMSS ........................................ 582 1,441 397
Other.
Lansdowne Partners is a London-based investment manager. Avenue Capital Group is a New York-based
investment manager. These investments are accounted for within the Company’s Investment Management
business segment.
The Company also invests in certain structured transactions and other investments not integral to the operations
of the Company accounted for under the equity method of accounting amounting of $1.5 billion and $2.7 billion
at December 31, 2014 and December 31, 2013, respectively.
294