v3.10.0.1
Total Equity
|
12 Months Ended |
|
Total Equity |
|
Total Equity |
Morgan Stanley Shareholders’ Equity Common Stock Rollforward of Common Stock Outstanding | | | | | | | in millions | | 2018 | | 2017 | Shares outstanding at beginning of period | | 1,788 | | 1,852 | Treasury stock purchases1 | | (110) | | (92) | Other2 | | 22 | | 28 | Shares outstanding at end of period | | 1,700 | | 1,788 |
1. The Firm’s Board has authorized the repurchase of the Firm’s outstanding stock under a share repurchase program (“Share Repurchase Program”). In addition to the Firm’s Share Repurchase Program, Treasury stock purchases include repurchases of common stock for employee tax withholding. 2. Other includes net shares issued to and forfeited from Employee stock trusts and issued for RSU conversions. Share Repurchases | | | | | | | | | | | | | | | $ in millions | | 2018 | | 2017 | Repurchases of common | | | | | | | | | stock under the Firm's | | | | | | | | | Share Repurchase Program | $ | 4,860 | $ | 3,750 |
The Firm’s 2018 Capital Plan (“Capital Plan”) includes the share repurchase of up to $4.7 billion of outstanding common stock for the period beginning July 1, 2018 through June 30, 2019. Additionally, the Capital Plan includes quarterly common stock dividends of up to $0.30 per share. On April 18, 2018, the Firm entered into a sales plan with MUFG, whereby MUFG sells shares of the Firm’s common stock to the Firm, as part of the Firm’s Share Repurchase Program. The sales plan is only intended to maintain MUFG’s ownership percentage below 24.9% in order to comply with MUFG’s passivity commitments to the Board of Governors of the Federal Reserve System and will have no impact on the strategic alliance between MUFG and the Firm, including the joint ventures in Japan. Pursuant to the Share Repurchase Program, the Firm considers, among other things, business segment capital needs, as well as stock-based compensation and benefit plan requirements. Share repurchases under the program will be exercised from time to time at prices the Firm deems appropriate subject to various factors, including the Firm’s capital position and market conditions. The share repurchases may be effected through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans, and may be suspended at any time. Share repurchases by the Firm are subject to regulatory approval. Employee Stock Trusts The Firm has established Employee stock trusts to provide common stock voting rights to certain employees who hold outstanding RSUs. The assets of the Employee stock trusts are consolidated with those of the Firm, and the value of the stock held in the Employee stock trusts is classified in Morgan Stanley shareholders’ equity and generally accounted for in a manner similar to treasury stock. Preferred Stock Outstanding | | | | | | | | | | | | | | | | | | Shares Outstanding | | | Carrying Value | | | | At | Liquidation | At | At | $ in millions, except per share data | December 31, | Preference | December 31, | December 31, | 2018 | per Share | 2018 | 2017 | Series | | | | | | | A | | 44,000 | $ | 25,000 | $ | 1,100 | $ | 1,100 | C1 | | 519,882 | | 1,000 | | 408 | | 408 | E | | 34,500 | | 25,000 | | 862 | | 862 | F | | 34,000 | | 25,000 | | 850 | | 850 | G | | 20,000 | | 25,000 | | 500 | | 500 | H | | 52,000 | | 25,000 | | 1,300 | | 1,300 | I | | 40,000 | | 25,000 | | 1,000 | | 1,000 | J | | 60,000 | | 25,000 | | 1,500 | | 1,500 | K | | 40,000 | | 25,000 | | 1,000 | | 1,000 | Total | $ | 8,520 | $ | 8,520 |
1. Series C is composed of the issuance of 1,160,791 shares of Series C Preferred Stock to MUFG for an aggregate purchase price of $911 million, less the redemption of 640,909 shares of Series C Preferred Stock of $503 million, which were converted to common shares of approximately $705 million. The Firm is authorized to issue 30 million shares of preferred stock. The preferred stock has a preference over the common stock upon liquidation. The Firm’s preferred stock qualifies as Tier 1 capital in accordance with regulatory capital requirements (see Note 14). Preferred Stock Issuance Description | | | | | | | | | | Depositary | | Redemption | Series1, 2 | Shares Issued | Shares per Share | | Price per Share3 | Date4 | A | 44,000 | 1,000 | $ | 25,000 | July 15, 2011 | C5 | 1,160,791 | N/A | | 1,100 | October 15, 2011 | E | 34,500 | 1,000 | | 25,000 | October 15, 2023 | F | 34,000 | 1,000 | | 25,000 | January 15, 2024 | G | 20,000 | 1,000 | | 25,000 | July 15, 2019 | H | 52,000 | 25 | | 25,000 | July 15, 2019 | I | 40,000 | 1,000 | | 25,000 | October 15, 2024 | J | 60,000 | 25 | | 25,000 | July 15, 2020 | K | 40,000 | 1,000 | | 25,000 | April 15, 2027 |
1. All shares issued are non-cumulative. Each share has a par value of $0.01, except Series C. 2. Dividends on Series A are based on Floating rate, and dividends on Series C and G are based on Fixed rate. Dividends on all other Series are based on Fixed-to-Floating rate. 3. Series A and C are redeemable at the redemption price plus accrued and unpaid dividends, regardless of whether dividends are actually declared, up to but excluding the date of redemption. All other Series are redeemable at the redemption price plus any declared and unpaid dividends to but excluding the date fixed for redemption. 4. Series A and C are redeemable at the Firm’s option, in whole or in part, on or after the redemption date. All other Series are redeemable at the Firm’s option (i) in whole or in part, from time to time, on any dividend payment date on or after the redemption date or (ii) in whole but not in part at any time within 90 days following a regulatory capital treatment event (as described in the terms of that series). 5. Series C is non-voting perpetual preferred stock. Dividends on the Series C preferred stock are payable, on a non-cumulative basis, as and if declared by the Board, in cash, at the rate of 10% per annum of the liquidation preference of $1,000 per share. Preferred Stock Dividends | | | | | | | | | | | | | | | $ in millions, except per share data | 2018 | | 2017 | | 2016 | Per | | | Per | | | Per | | Share1 | Total | | Share1 | Total | | Share1 | Total | Series | | | | | | | | | | | A | $ | 1,011 | $ | 45 | $ | 1,014 | $ | 45 | $ | 1,017 | $ | 45 | C | | 100 | | 52 | | 100 | | 52 | | 100 | | 52 | E | | 1,781 | | 61 | | 1,781 | | 61 | | 1,781 | | 62 | F | | 1,719 | | 58 | | 1,719 | | 58 | | 1,719 | | 58 | G | | 1,656 | | 33 | | 1,656 | | 33 | | 1,656 | | 33 | H | | 1,363 | | 71 | | 1,363 | | 71 | | 1,363 | | 71 | I | | 1,594 | | 64 | | 1,594 | | 64 | | 1,594 | | 64 | J | | 1,388 | | 83 | | 1,388 | | 83 | | 1,388 | | 83 | K | | 1,463 | | 59 | | 1,402 | | 56 | | N/A | | N/A | Total | | | | $ | 526 | | | $ | 523 | | | $ | 468 |
1. Dividends on all series are payable quarterly, except for Series H and J, which are payable semiannually until July 15, 2019 and July 15, 2020, respectively, and then quarterly thereafter. Comprehensive Income (Loss) | | Accumulated Comprehensive Income (Loss)1 | | | | | | | | | | | | | | | $ in millions | Foreign Currency Translation Adjustments | AFS Securities | Pensions, Postretirement and Other | DVA | Total | December 31, 2015 | $ | (963) | $ | (319) | $ | (374) | $ | — | $ | (1,656) | Cumulative adjustment for | | | | | | | | | | accounting change2 | — | | — | | — | | (312) | | (312) | OCI during the period | | (23) | | (269) | | (100) | | (283) | | (675) | December 31, 2016 | | (986) | | (588) | | (474) | | (595) | | (2,643) | OCI during the period | | 219 | | 41 | | (117) | | (560) | | (417) | December 31, 2017 | | (767) | | (547) | | (591) | | (1,155) | | (3,060) | Cumulative adjustment for | | | | | | | | | | accounting changes3 | (8) | | (111) | | (124) | | (194) | | (437) | OCI during the period | | (114) | | (272) | | 137 | | 1,454 | | 1,205 | December 31, 2018 | $ | (889) | $ | (930) | $ | (578) | $ | 105 | $ | (2,292) |
1. Amounts are net of tax and noncontrolling interests. 2. In accordance with the early adoption of a provision of the accounting update Recognition and Measurement of Financial Assets and Financial Liabilities, a cumulative catch-up adjustment was recorded as of January 1, 2016, to move the cumulative unrealized DVA amount related to outstanding liabilities under the fair value option election from Retained earnings into AOCI. 3. The cumulative adjustment for accounting changes is primarily the effect of the adoption of the accounting update Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This adjustment was recorded as of January 1, 2018 to reclassify certain income tax effects related to enactment of the Tax Act from AOCI to Retained earnings, primarily related to the remeasurement of deferred tax assets and liabilities resulting from the reduction in the corporate income tax rate to 21%. See Note 2 for further information. Components of Period Changes in OCI | | | | | | | | | | | | | | | 20181 | $ in millions | | Pre-tax Gain (Loss) | | Income Tax Benefit (Provision) | | After-tax Gain (Loss) | | Non-controlling Interests | | Net | Foreign currency translation adjustments | OCI activity | $ | (11) | $ | (79) | $ | (90) | $ | 24 | $ | (114) | Reclassified to earnings | — | | — | | — | | — | | — | Net OCI | $ | (11) | $ | (79) | $ | (90) | $ | 24 | $ | (114) | | | | | | | | | | | | Change in net unrealized gains (losses) on AFS securities | OCI activity | $ | (346) | $ | 80 | $ | (266) | $ | — | $ | (266) | Reclassified to earnings | (8) | | 2 | | (6) | | — | | (6) | Net OCI | $ | (354) | $ | 82 | $ | (272) | $ | — | $ | (272) | | | | | | | | | | | | Pension, postretirement and other | OCI activity | $ | 156 | $ | (37) | $ | 119 | $ | — | $ | 119 | Reclassified to earnings | 26 | | (8) | | 18 | | — | | 18 | Net OCI | $ | 182 | $ | (45) | $ | 137 | $ | — | $ | 137 | | | | | | | | | | | | Change in net DVA | OCI activity | $ | 1,947 | $ | (472) | $ | 1,475 | $ | 63 | $ | 1,412 | Reclassified to earnings | 56 | | (14) | | 42 | | — | | 42 | Net OCI | $ | 2,003 | $ | (486) | $ | 1,517 | $ | 63 | $ | 1,454 |
| 2017 | $ in millions | | Pre-tax Gain (Loss) | | Income Tax Benefit (Provision) | | After-tax Gain (Loss) | | Non-controlling Interests | | Net | Foreign currency translation adjustments | OCI activity | $ | 64 | $ | 187 | $ | 251 | $ | 32 | $ | 219 | Reclassified to earnings | — | | — | | — | | — | | — | Net OCI | $ | 64 | $ | 187 | $ | 251 | $ | 32 | $ | 219 | | | | | | | | | | | | Change in net unrealized gains (losses) on AFS securities | OCI activity | $ | 100 | $ | (36) | $ | 64 | $ | — | $ | 64 | Reclassified to earnings | (35) | | 12 | | (23) | | — | | (23) | Net OCI | $ | 65 | $ | (24) | $ | 41 | $ | — | $ | 41 | | | | | | | | | | | | Pension, postretirement and other | OCI activity | $ | (193) | $ | 75 | $ | (118) | $ | — | $ | (118) | Reclassified to earnings | 2 | | (1) | | 1 | | — | | 1 | Net OCI | $ | (191) | $ | 74 | $ | (117) | $ | — | $ | (117) | | | | | | | | | | | | Change in net DVA | OCI activity | $ | (922) | $ | 325 | $ | (597) | $ | (28) | $ | (569) | Reclassified to earnings | 12 | | (3) | | 9 | | — | | 9 | Net OCI | $ | (910) | $ | 322 | $ | (588) | $ | (28) | $ | (560) |
| 20162 | $ in millions | | Pre-tax Gain (Loss) | | Income Tax Benefit (Provision) | | After-tax Gain (Loss) | | Non-controlling Interests | | Net | Foreign currency translation adjustments | OCI activity | $ | (24) | $ | 9 | $ | (15) | $ | 12 | $ | (27) | Reclassified to earnings | 4 | | — | | 4 | | — | | 4 | Net OCI | $ | (20) | $ | 9 | $ | (11) | $ | 12 | $ | (23) | Change in net unrealized gains (losses) on AFS securities | OCI activity | $ | (313) | $ | 116 | $ | (197) | $ | — | $ | (197) | Reclassified to earnings | (113) | | 41 | | (72) | | — | | (72) | Net OCI | $ | (426) | $ | 157 | $ | (269) | $ | — | $ | (269) | Pension, postretirement and other | OCI activity | $ | (162) | $ | 64 | $ | (98) | $ | — | $ | (98) | Reclassified to earnings | (3) | | 1 | | (2) | | — | | (2) | Net OCI | $ | (165) | $ | 65 | $ | (100) | $ | — | $ | (100) | Change in net DVA | OCI activity | $ | (429) | $ | 153 | $ | (276) | $ | (13) | $ | (263) | Reclassified to earnings | (31) | | 11 | | (20) | | — | | (20) | Net OCI | $ | (460) | $ | 164 | $ | (296) | $ | (13) | $ | (283) |
1. Exclusive of cumulative adjustments related to the adoption of certain accounting updates in 2018. Refer to the table below and Note 2 for further information. 2. Exclusive of 2016 cumulative adjustment for accounting change related to DVA. Cumulative Adjustments to Retained Earnings Related to Adoption of Accounting Updates | | | | | | | $ in millions | 2018 | Revenues from contracts with customers | $ | (32) | Derivatives and hedging—targeted improvements | | | to accounting for hedging activities | | (99) | Reclassification of certain tax effects from AOCI | | 443 | Other1 | | (6) | Total | $ | 306 | | | | | | | | $ in millions | 2017 | Improvements to employee share-based payment | | | accounting2 | $ | (30) | Intra-entity transfers of assets other than inventory | | (5) | Total | $ | (35) |
1. Other includes the adoption of accounting updates related to Recognition and Measurement of Financial Assets and Financial Liabilities (other than the provision around presenting unrealized DVA in OCI, which the Firm early adopted in 2016) and Derecognition of Nonfinancial Assets. The impact of these adoptions on Retained earnings was not significant. 2. In 2017, in accordance with the adoption of a provision of the accounting update Improvements to Employee Share-Based Payment Accounting, the Firm has elected to account for forfeitures on an actual basis as they occur. Upon adoption, the Firm recorded a cumulative catch-up adjustment. Cumulative Foreign Currency Translation Adjustments Cumulative foreign currency translation adjustments include gains or losses resulting from translating foreign currency financial statements from their respective functional currencies to U.S. dollars, net of hedge gains or losses and related tax effects. The Firm uses foreign currency contracts to manage the currency exposure relating to its net investments in non-U.S. dollar functional currency subsidiaries and determines the amount of exposure to hedge on a pre-tax basis. The Firm may also elect not to hedge its net investments in certain foreign operations due to market conditions or other reasons, including the availability of various currency contracts at acceptable costs. Information relating to the effects on cumulative foreign currency translation adjustments that resulted from the translation of foreign currency financial statements and from gains and losses from hedges of the Firm’s net investments in non-U.S. dollar functional currency subsidiaries is summarized in the following table. Cumulative Foreign Currency Translation Adjustments | | | | At | At | | | December 31, | December 31, | $ in millions | 2018 | 2017 | Associated with net investments in subsidiaries | | | | with a non-U.S. dollar functional currency | $ | (1,851) | $ | (1,434) | Hedges, net of tax | | 962 | | 667 | Total | $ | (889) | $ | (767) | Carrying value of net investments in | | | | | | non-U.S. dollar functional currency | | | | | subsidiaries subject to hedges | $ | 11,608 | $ | 10,139 |
|
X |
- References
+ Details
Name: |
us-gaap_StockholdersEquityNoteAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
+ References
+ Details
Name: |
us-gaap_StockholdersEquityNoteDisclosureTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
|