Morgan Stanley 2015 Annual Report Download - page 229

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
17. Interest Income and Interest Expense.
Interest Income and Interest Expense.
2015 2014 2013
(dollars in millions)
Interest income(1):
Trading assets(2) .................................................... $ 2,262 $ 2,109 $ 2,292
Investment securities ................................................. 876 613 447
Loans ............................................................. 2,163 1,690 1,121
Interest bearing deposits with banks ..................................... 108 109 129
Securities purchased under agreements to resell and Securities borrowed(3) ...... (560) (298) (20)
Customer receivables and Other(4) ...................................... 986 1,190 1,240
Total interest income ..................................................... $ 5,835 $ 5,413 $ 5,209
Interest expense(1):
Deposits ........................................................... $ 78 $ 106 $ 159
Short-term borrowings ................................................ 16 4 20
Long-term borrowings ................................................ 3,481 3,609 3,758
Securities sold under agreements to repurchase and Securities loaned(5) ......... 1,024 1,216 1,469
Customer payables and Other(6) ........................................ (1,857) (1,257) (975)
Total interest expense ..................................................... $ 2,742 $ 3,678 $ 4,431
Net interest ............................................................. $ 3,093 $ 1,735 $ 778
(1) Interest income and expense are recorded within the consolidated statements of income depending on the nature of the instrument and related market
conventions. When interest is included as a component of the instrument’s fair value, interest is included within Trading revenues or Investments revenues.
Otherwise, it is included within Interest income or Interest expense.
(2) Interest expense on Trading liabilities is reported as a reduction to Interest income on Trading assets.
(3) Includes fees paid on Securities borrowed.
(4) Includes interest from customer receivables and other interest earning assets.
(5) Includes fees received on Securities loaned.
(6) Includes fees received from prime brokerage customers for stock loan transactions incurred to cover customers’ short positions.
18. Deferred Compensation Plans.
The Company maintains various deferred compensation plans for the benefit of certain current and former employees. The
two principal forms of deferred compensation are granted under several stock-based compensation and cash-based
compensation plans.
Stock-Based Compensation Plans.
Stock-Based Compensation Expense.
The components of the Company’s stock-based compensation expense (net of cancellations) are presented below:
2015 2014 2013
(dollars in millions)
Restricted stock units(1) ....................................................... $1,080 $ 1,212 $ 1,140
Stock options ................................................................ (3) 5 15
Performance-based stock units .................................................. 26 45 29
Total .................................................................. $1,103 $ 1,262 $ 1,184
(1) Amounts for 2015, 2014 and 2013 include $68 million, $31 million and $25 million, respectively, related to stock-based awards that were granted in 2016, 2015
and 2014, respectively, to employees who satisfied retirement-eligible requirements under award terms that do not contain a service period.
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