Morgan Stanley 2014 Annual Report Download - page 304

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(5) See Note 1 for more information on discontinued operations.
(6) Summation of the quarters’ earnings per common share may not equal the annual amounts due to the averaging effect of the number of
shares and share equivalents throughout the year.
(7) Beginning with the dividend declared on April 17, 2014, the Company increased the quarterly common stock dividend to $0.10 per share
from $0.05 per share.
25. Subsequent Events.
The Company has evaluated subsequent events for adjustment to or disclosure in the Company’s consolidated
financial statements through the date of this report, and the Company has not identified any recordable or
disclosable events, not otherwise reported in these consolidated financial statements or the notes thereto, except
for the following:
Common Stock Dividend.
On January 20, 2015, the Company announced that its Board of Directors declared a quarterly dividend per
common share of $0.10. The dividend was paid on February 13, 2015 to common shareholders of record on
January 30, 2015 (see Note 15).
Long-Term Borrowings.
Subsequent to December 31, 2014 and through January 31, 2015, the Company’s long-term borrowings (net of
repayments) increased by approximately $5.4 billion. This amount includes the Company’s issuance of $5.5
billion in senior debt on January 27, 2015 and the issuance of $1.7 billion in senior debt on January 30, 2015.
Legal.
On February 25, 2015, and subsequent to the release of the Company’s 2014 earnings on January 20, 2015, legal
reserves were increased by $2.8 billion within the Company’s Institutional Securities business segment for the
year ended December 31, 2014, for the Civil Division legal matter and certain other legacy residential mortgage
matters (see Note 13). This decreased income from continuing operations by $2.7 billion and diluted EPS from
continuing operations by $1.35 for the year ended December 31, 2014. The Civil Division and related legal
matters were considered to be a recognizable subsequent event requiring adjustment to the Company’s December
31, 2014 consolidated financial statements under U.S. GAAP.
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