Morgan Stanley 2014 Annual Report Download - page 65

U.S. agency securities, U.S. agency mortgage-backed securities, non-U.S. government securities and other highly liquid investment-
grade securities. For a discussion of Global Liquidity Reserve, see “Liquidity and Capital Resources—Liquidity Risk Management
Framework—Global Liquidity Reserve” herein.
(18) The Company calculates the average Global Liquidity Reserve based upon daily amounts.
(19) The Company calculates its applicable risk-based capital ratios and risk-weighted assets (“RWAs”) in accordance with the capital
adequacy standards for financial holding companies adopted by the Board of Governors of the Federal Reserve System (the “Federal
Reserve”). For a further discussion of the Company’s methods for calculating its risk-based capital ratios and RWAs, see “Liquidity and
Capital Resources—Regulatory Requirements” herein.
(20) Beginning with the first quarter of 2014, Tier 1 leverage ratio equals Tier 1 capital (calculated under U.S. Basel III Transitional rules)
divided by adjusted average total assets (which reflects adjustments for disallowed goodwill, transitional intangible assets, certain
deferred tax assets, certain financial equity investments and other adjustments). In 2013, Tier 1 leverage ratio equaled Tier 1 capital
(calculated under U.S. Basel I) divided by adjusted average total assets (which reflects adjustments for disallowed goodwill, certain
intangible assets, deferred tax assets, and financial and non-financial equity investments).
(21) Revenues and expenses associated with these assets are included in the Company’s Wealth Management and Investment Management
business segments.
(22) Amounts exclude the Company’s Investment Management business segment’s proportionate share of assets managed by entities in which
it owns a minority stake.
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