Morgan Stanley 2015 Annual Report Download - page 228

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
16. Earnings per Common Share.
Calculation of Basic and Diluted EPS.
2015 2014 2013
(in millions, except for per share data)
Basic EPS:
Income from continuing operations .................................... $ 6,295 $ 3,681 $ 3,656
Income (loss) from discontinued operations ............................. (16) (14) (43)
Net income ....................................................... 6,279 3,667 3,613
Net income applicable to redeemable noncontrolling interests ............... — — 222
Net income applicable to nonredeemable noncontrolling interests ............ 152 200 459
Net income applicable to Morgan Stanley ............................... 6,127 3,467 2,932
Less: Preferred dividends ............................................ (452) (311) (120)
Less: Wealth Management JV redemption value adjustment ................ — — (151)
Less: Allocation of (earnings) loss to participating RSUs(1) ................ (4) (4) (6)
Earnings applicable to Morgan Stanley common shareholders ............... $ 5,671 $ 3,152 $ 2,655
Weighted average common shares outstanding ........................... 1,909 1,924 1,906
Earnings per basic common share:
Income from continuing operations .................................... $ 2.98 $ 1.65 $ 1.42
Income (loss) from discontinued operations ............................. (0.01) (0.01) (0.03)
Earnings per basic common share ................................. $ 2.97 $ 1.64 $ 1.39
Diluted EPS:
Earnings applicable to Morgan Stanley common shareholders ............... $ 5,671 $ 3,152 $ 2,655
Weighted average common shares outstanding ........................... 1,909 1,924 1,906
Effect of dilutive securities:
Stock options and RSUs(1) ...................................... 44 47 51
Weighted average common shares outstanding and common stock
equivalents ..................................................... 1,953 1,971 1,957
Earnings per diluted common share:
Income from continuing operations .................................... $ 2.91 $ 1.61 $ 1.38
Income (loss) from discontinued operations ............................. (0.01) (0.01) (0.02)
Earnings per diluted common share ................................ $ 2.90 $ 1.60 $ 1.36
(1) RSUs that are considered participating securities participate in all of the earnings of the Company in the computation of basic EPS, and, therefore, such RSUs
are not included as incremental shares in the diluted calculation.
Antidilutive Securities.
Securities that were considered antidilutive were excluded from the computation of diluted EPS.
Outstanding Antidilutive Securities at Period-End.
2015 2014 2013
(shares in millions)
Stock options ............................................................. 11 13 33
RSUs and performance-based stock units ....................................... 1 2 3
Total ................................................................ 12 15 36
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