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Morgan Stanley – ‘10-K’ for 12/31/18 – ‘R23’

On:  Tuesday, 2/26/19, at 4:12pm ET   ·   For:  12/31/18   ·   Accession #:  1193125-19-51943   ·   File #:  1-11758

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/26/19  Morgan Stanley                    10-K       12/31/18  188:49M                                    Donnelley … Solutions/FA

Annual Report   —   Form 10-K   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                       HTML   3.85M 
 4: EX-10.24    Material Contract                                   HTML     56K 
 5: EX-10.30    Material Contract                                   HTML    169K 
 2: EX-10.4     Material Contract                                   HTML     69K 
 3: EX-10.6     Material Contract                                   HTML    118K 
 6: EX-21       Subsidiaries List                                   HTML     60K 
 7: EX-23.1     Consent of Experts or Counsel                       HTML     64K 
 8: EX-31.1     Certification -- §302 - SOA'02                      HTML     58K 
 9: EX-31.2     Certification -- §302 - SOA'02                      HTML     58K 
10: EX-32.1     Certification -- §906 - SOA'02                      HTML     53K 
11: EX-32.2     Certification -- §906 - SOA'02                      HTML     53K 
18: R1          Document and Entity Information                     HTML     82K 
19: R2          Consolidated Income Statements                      HTML    163K 
20: R3          Consolidated Comprehensive Income Statements        HTML     83K 
21: R4          Consolidated Balance Sheets                         HTML    152K 
22: R5          Consolidated Balance Sheets (Parenthetical)         HTML     82K 
23: R6          Consolidated Statements of Changes in Total Equity  HTML    109K 
24: R7          Consolidated Statements of Changes in Total Equity  HTML     58K 
                (Parenthetical)                                                  
25: R8          Consolidated Cash Flow Statements                   HTML    164K 
26: R9          Introduction and Basis of Presentation              HTML     74K 
27: R10         Significant Accounting Policies                     HTML    198K 
28: R11         Fair Value Disclosures                              HTML   1.28M 
29: R12         Derivative Instruments and Hedging Activities       HTML    530K 
30: R13         Investment Securities                               HTML    502K 
31: R14         Collateralized Transactions                         HTML    283K 
32: R15         Loans, Lending Commitments and Allowance for        HTML    421K 
                Credit Losses                                                    
33: R16         Equity Method Investments                           HTML     70K 
34: R17         Goodwill and Intangible Assets                      HTML    152K 
35: R18         Deposits                                            HTML     77K 
36: R19         Borrowings and Other Secured Financings             HTML    220K 
37: R20         Commitments, Guarantees and Contingencies           HTML    262K 
38: R21         Variable Interest Entities and Securitization       HTML    382K 
                Activities                                                       
39: R22         Regulatory Requirements                             HTML    221K 
40: R23         Total Equity                                        HTML    379K 
41: R24         Earnings per Common Share                           HTML    119K 
42: R25         Interest Income and Interest Expense                HTML     90K 
43: R26         Deferred Compensation Plans                         HTML    176K 
44: R27         Employee Benefit Plans                              HTML    391K 
45: R28         Income Taxes                                        HTML    215K 
46: R29         Segment, Geographic and Revenue Information         HTML    426K 
47: R30         Parent Company                                      HTML    291K 
48: R31         Quarterly Results                                   HTML    251K 
49: R32         Subsequent Events                                   HTML     56K 
50: R33         Significant Accounting Policies (Policy)            HTML    247K 
51: R34         Significant Accounting Policies (Tables)            HTML     60K 
52: R35         Fair Value Disclosures (Tables)                     HTML   1.21M 
53: R36         Derivative Instruments and Hedging Activities       HTML    529K 
                (Tables)                                                         
54: R37         Investment Securities (Tables)                      HTML    505K 
55: R38         Collateralized Transactions (Tables)                HTML    280K 
56: R39         Loans, Lending Commitments and Allowance for        HTML    416K 
                Credit Losses (Tables)                                           
57: R40         Equity Method Investments (Tables)                  HTML     69K 
58: R41         Goodwill and Intangible Assets (Tables)             HTML    156K 
59: R42         Deposits (Tables)                                   HTML     77K 
60: R43         Borrowings and Other Secured Financings (Tables)    HTML    222K 
61: R44         Commitments, Guarantees and Contingencies (Tables)  HTML    215K 
62: R45         Variable Interest Entities and Securitization       HTML    357K 
                Activities (Tables)                                              
63: R46         Regulatory Requirements (Tables)                    HTML    208K 
64: R47         Total Equity (Tables)                               HTML    381K 
65: R48         Earnings per Common Share (Tables)                  HTML    119K 
66: R49         Interest Income and Interest Expense (Tables)       HTML     88K 
67: R50         Deferred Compensation Plans (Tables)                HTML    189K 
68: R51         Employee Benefit Plans (Tables)                     HTML    396K 
69: R52         Income Taxes (Tables)                               HTML    216K 
70: R53         Segment, Geographic and Revenue Information         HTML    433K 
                (Tables)                                                         
71: R54         Parent Company (Tables)                             HTML    289K 
72: R55         Quarterly Results (Tables)                          HTML    253K 
73: R56         Significant Accounting Policies (Details)           HTML     88K 
74: R57         Fair Value Disclosures (Assets and Liabilities      HTML    219K 
                Measured at Fair Value on a Recurring Basis)                     
                (Details)                                                        
75: R58         Fair Value Disclosures (Rollforward of Level 3      HTML    185K 
                Assets and Liabilities Measured at Fair Value on a               
                Recurring Basis) (Details)                                       
76: R59         Fair Value Disclosures (Valuation Techniques and    HTML    366K 
                Sensitivity of Unobservable Inputs Used in Level 3               
                Fair Value Measurements) (Details)                               
77: R60         Fair Value Disclosures (Fund Interests Measured     HTML     76K 
                Based on Net Asset Value) (Details)                              
78: R61         Fair Value Disclosures (Borrowings Measured at      HTML     69K 
                Fair Value on a Recurring Basis) (Details)                       
79: R62         Fair Value Disclosures (Earnings Impact of          HTML     61K 
                Borrowings under the Fair Value Option) (Details)                
80: R63         Fair Value Disclosures (Gains (Losses) Due to       HTML     73K 
                Changes in Instrument-Specific Credit Risk)                      
                (Details)                                                        
81: R64         Fair Value Disclosures (Excess of Contractual       HTML     59K 
                Principal Amount Over Fair Value) (Details)                      
82: R65         Fair Value Disclosures (Fair Value Loans on         HTML     57K 
                Nonaccrual Status) (Details)                                     
83: R66         Fair Value Disclosures (Assets and Liabilities      HTML     96K 
                Measured at Fair Value on a Nonrecurring Basis)                  
                (Details)                                                        
84: R67         Fair Value Disclosures (Financial Instruments Not   HTML    142K 
                Measured at Fair Value) (Details)                                
85: R68         Derivative Instruments and Hedging Activities       HTML    200K 
                (Derivative Fair Values) (Details)                               
86: R69         Derivative Instruments and Hedging Activities       HTML    123K 
                (Derivative Notionals) (Details)                                 
87: R70         Derivative Instruments and Hedging Activities       HTML     81K 
                (Gains (Losses) on Accounting Hedges and Fair                    
                Value Hedges) (Details)                                          
88: R71         Derivative Instruments and Hedging Activities       HTML     67K 
                (Credit Risk-Related Contingencies) (Details)                    
89: R72         Derivative Instruments and Hedging Activities       HTML    115K 
                (Maximum Potential Payout/Notional of Credit                     
                Protection Sold) (Details)                                       
90: R73         Derivative Instruments and Hedging Activities       HTML     72K 
                (Fair Value (Asset)/Liability of Credit Protection               
                Sold) (Details)                                                  
91: R74         Derivative Instruments and Hedging Activities       HTML     68K 
                (Protection Purchased with CDS) (Details)                        
92: R75         Investment Securities (AFS and HTM Securities)      HTML    150K 
                (Details)                                                        
93: R76         Investment Securities (Investment Securities in an  HTML    158K 
                Unrealized Loss Position) (Details)                              
94: R77         Investment Securities (Investment Securities by     HTML    223K 
                Contractual Maturity) (Details)                                  
95: R78         Investment Securities (Gross Realized Gains and     HTML     60K 
                Losses on Sales of AFS Securities) (Details)                     
96: R79         Collateralized Transactions (Offsetting of Certain  HTML    128K 
                Collateralized Transactions) (Details)                           
97: R80         Collateralized Transactions (Gross Secured          HTML     98K 
                Financing Balances) (Details)                                    
98: R81         Collateralized Transactions (Assets Loaned or       HTML     60K 
                Pledged) (Details)                                               
99: R82         Collateralized Transactions (Collateral Received)   HTML     57K 
                (Details)                                                        
100: R83         Collateralized Transactions (Restricted Cash and    HTML     61K  
                Segregated Securities) (Details)                                 
101: R84         Collateralized Transactions (Concentration Risk)    HTML     61K  
                (Details)                                                        
102: R85         Collateralized Transactions (Customer Margin        HTML     54K  
                Lending) (Details)                                               
103: R86         Loans, Lending Commitments and Allowance for        HTML    141K  
                Credit Losses (Loans by Type) (Details)                          
104: R87         Loans, Lending Commitments and Allowance for        HTML     89K  
                Credit Losses (Impaired Loans and Lending                        
                Commitments) (Details)                                           
105: R88         Loans, Lending Commitments and Allowance for        HTML     58K  
                Credit Losses (Tdr) (Details)                                    
106: R89         Loans, Lending Commitments and Allowance for        HTML    117K  
                Credit Losses (Allowance for Loan Losses and                     
                Lending Commitments Rollforward) (Details)                       
107: R90         Loans, Lending Commitments and Allowance for        HTML     64K  
                Credit Losses (Employee Loans) (Details)                         
108: R91         Equity Method Investments (Equity Method            HTML     66K  
                Investment Balances) (Details)                                   
109: R92         Equity Method Investments (Investees) (Details)     HTML     64K  
110: R93         Goodwill and Intangible Assets (Goodwill            HTML     77K  
                Rollforward) (Details)                                           
111: R94         Goodwill and Intangible Assets (Intangible Assets   HTML     69K  
                by Business Segment) (Details)                                   
112: R95         Goodwill and Intangible Assets (Gross Amortizable   HTML     84K  
                Intangible Assets by Type) (Details)                             
113: R96         Goodwill and Intangible Assets (Net Amortizable     HTML     75K  
                Intangible Assets Rollforward) (Details)                         
114: R97         Deposits (Details)                                  HTML     78K  
115: R98         Borrowings and Other Secured Financings             HTML    109K  
                (Maturities and Terms of Borrowings) (Details)                   
116: R99         Borrowings and Other Secured Financings (Long-Term  HTML     76K  
                Borrowings) (Details)                                            
117: R100        Borrowings and Other Secured Financings (Rates for  HTML     56K  
                Long-Term Borrowings) (Details)                                  
118: R101        Borrowings and Other Secured Financings (Other      HTML     61K  
                Secured Financings) (Details)                                    
119: R102        Borrowings and Other Secured Financings             HTML     96K  
                (Maturities and Terms of Secured Financings)                     
                (Details)                                                        
120: R103        Borrowings and Other Secured Financings (Failed     HTML     69K  
                Sales by Maturity) (Details)                                     
121: R104        Commitments, Guarantees and Contingencies           HTML     89K  
                (Commitments) (Details)                                          
122: R105        Commitments, Guarantees and Contingencies           HTML     78K  
                (Operating Premises Leases) (Details)                            
123: R106        Commitments, Guarantees and Contingencies           HTML    126K  
                (Obligations under Guarantee Arrangements)                       
                (Details)                                                        
124: R107        Commitments, Guarantees and Contingencies           HTML    118K  
                (Contingencies) (Details)                                        
125: R108        Variable Interest Entities and Securitization       HTML     65K  
                Activities (Assets and Liabilities by Type of                    
                Activity) (Details)                                              
126: R109        Variable Interest Entities and Securitization       HTML     90K  
                Activities (Assets and Liabilities by Balance                    
                Sheet Caption) (Details)                                         
127: R110        Variable Interest Entities and Securitization       HTML    131K  
                Activities (Non-Consolidated VIEs) (Details)                     
128: R111        Variable Interest Entities and Securitization       HTML    100K  
                Activities (Transfers of Assets with Continuing                  
                Involvement 1) (Details)                                         
129: R112        Variable Interest Entities and Securitization       HTML     85K  
                Activities (Transfers of Assets with Continuing                  
                Involvement 2) (Details)                                         
130: R113        Variable Interest Entities and Securitization       HTML     64K  
                Activities (Proceeds from New Securitization                     
                Transactions and Sales of Loans) (Details)                       
131: R114        Variable Interest Entities and Securitization       HTML     68K  
                Activities (Assets Sold with Retained Exposure)                  
                (Details)                                                        
132: R115        Regulatory Requirements (Narrative) (Details)       HTML     60K  
133: R116        Regulatory Requirements (Capital Measures)          HTML     97K  
                (Details)                                                        
134: R117        Regulatory Requirements (U.S. Bank Subsidiaries'    HTML    106K  
                Regulatory Capital and Capital Ratios) (Details)                 
135: R118        Regulatory Requirements (U.S. Broker-Dealer         HTML     62K  
                Regulatory Capital Requirements) (Details)                       
136: R119        Regulatory Requirements (Restricted Net Assets)     HTML     55K  
                (Details)                                                        
137: R120        Total Equity (Rollforward of Common Stock           HTML     62K  
                Outstanding) (Details)                                           
138: R121        Total Equity (Dividends and Share Repurchases)      HTML     79K  
                (Details)                                                        
139: R122        Total Equity (Preferred Stock Outstanding)          HTML    103K  
                (Details)                                                        
140: R123        Total Equity (Preferred Stock Issuance              HTML     92K  
                Description) (Details)                                           
141: R124        Total Equity (Preferred Stock Dividends) (Details)  HTML     83K  
142: R125        Total Equity (Aoci) (Details)                       HTML     73K  
143: R126        Total Equity (Components of Period Changes in OCI   HTML    193K  
                ) (Details)                                                      
144: R127        Total Equity (Cumulative Adjustments to Retained    HTML     68K  
                Earnings) (Details)                                              
145: R128        Total Equity (Cumulative Foreign Currency           HTML     63K  
                Translation Adjustments) (Details)                               
146: R129        Earnings per Common Share (Calculation of Basic     HTML    125K  
                and Diluted EPS) (Details)                                       
147: R130        Interest Income and Interest Expense (Details)      HTML     87K  
148: R131        Deferred Compensation Plans (Stock-based            HTML     82K  
                Compensation Plans) (Details)                                    
149: R132        Deferred Compensation Plans (Vested and Unvested    HTML     82K  
                RSU Activity) (Details)                                          
150: R133        Deferred Compensation Plans (Unvested RSU           HTML     83K  
                Activity) (Details)                                              
151: R134        Deferred Compensation Plans (Performance-Based      HTML     73K  
                Stock Units) (Details)                                           
152: R135        Deferred Compensation Plans (Monte Carlo            HTML     67K  
                Simulation Assumptions) (Details)                                
153: R136        Deferred Compensation Plans (Deferred Cash-based    HTML     73K  
                Compensation Plans) (Details)                                    
154: R137        Deferred Compensation Plans (Annual Compensation    HTML     80K  
                Cost for 2018 Performance Year Awards) (Details)                 
155: R138        Employee Benefit Plans (Net Periodic Benefit        HTML    109K  
                Expense (Income)) (Details)                                      
156: R139        Employee Benefit Plans (Rollforward of the Benefit  HTML    119K  
                Obligation and Fair Value of Plan Assets)                        
                (Details)                                                        
157: R140        Employee Benefit Plans (Accumulated Benefit         HTML     65K  
                Obligation, and Pension Plans with Benefit                       
                Obligations in Excess of the Fair Value of Plan                  
                Assets) (Details)                                                
158: R141        Employee Benefit Plans (Assumptions) (Details)      HTML     76K  
159: R142        Employee Benefit Plans (Fair Value of Plan Assets)  HTML    135K  
                (Details)                                                        
160: R143        Employee Benefit Plans (Rollforward of Level 3      HTML     64K  
                Plan Assets) (Details)                                           
161: R144        Employee Benefit Plans (Expected Future Benefit     HTML     71K  
                Payments) (Details)                                              
162: R145        Employee Benefit Plans (401(k) and Defined          HTML     67K  
                Contribution Pension Plans) (Details)                            
163: R146        Income Taxes (Provision for (Benefit from) Income   HTML    126K  
                Taxes) (Details)                                                 
164: R147        Income Taxes (Effective Income Tax Rate) (Details)  HTML     92K  
165: R148        Income Taxes (Deferred Tax Assets and Liabilities)  HTML     84K  
                (Details)                                                        
166: R149        Income Taxes (Unrecognized Tax Benefits) (Details)  HTML     76K  
167: R150        Income Taxes (Earliest Tax Year Subject to          HTML     63K  
                Examination in Major Tax Jurisdictions) (Details)                
168: R151        Segment, Geographic and Revenue Information         HTML    197K  
                (Selected Financial Information by Business                      
                Segment) (Details)                                               
169: R152        Segment, Geographic and Revenue Information (Net    HTML     80K  
                Discrete Tax Provision (Benefit) by Segment)                     
                (Details)                                                        
170: R153        Segment, Geographic and Revenue Information         HTML     62K  
                (Assets by Business Segment) (Details)                           
171: R154        Segment, Geographic and Revenue Information         HTML     58K  
                (Additional Information - Investment Management)                 
                (Details)                                                        
172: R155        Segment, Geographic and Revenue Information (Net    HTML     67K  
                Revenues by Region) (Details)                                    
173: R156        Segment, Geographic and Revenue Information         HTML     64K  
                (Income by Region) (Details)                                     
174: R157        Segment, Geographic and Revenue Information (Total  HTML     61K  
                Assets by Region) (Details)                                      
175: R158        Segment, Geographic and Revenue Information         HTML     68K  
                (Trading Revenues by Product Type) (Details)                     
176: R159        Segment, Geographic and Revenue Information         HTML     88K  
                (Change in Revenue) (Details)                                    
177: R160        Segment, Geographic and Revenue Information         HTML     56K  
                (Receivables from Contracts with Customers)                      
                (Details)                                                        
178: R161        Parent Company (Condensed Income Statements and     HTML    132K  
                Comprehensive Income Statements) (Details)                       
179: R162        Parent Company (Condensed Balance Sheets)           HTML    171K  
                (Details)                                                        
180: R163        Parent Company (Condensed Cash Flow Statements)     HTML    163K  
                (Details)                                                        
181: R164        Parent Company (Long-Term Borrowings) (Details)     HTML     65K  
182: R165        Parent Company (Guarantees) (Details)               HTML     60K  
183: R166        Quarterly Results (Unaudited) (Details)             HTML    130K  
184: R167        Quarterly Results (Unaudited) (Subnote) (Details)   HTML     63K  
185: R168        Quarterly Results (Change in Revenue) (Details)     HTML     63K  
187: XML         IDEA XML File -- Filing Summary                      XML    384K  
186: EXCEL       IDEA Workbook of Financial Reports                  XLSX    321K  
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188: ZIP         XBRL Zipped Folder -- 0001193125-19-051943-xbrl      Zip   1.19M  


‘R23’   —   Total Equity


This is an IDEA Financial Report.  [ Alternative Formats ]



 
v3.10.0.1
Total Equity
12 Months Ended
Total Equity  
Total Equity

15. Total Equity

Morgan Stanley Shareholders’ Equity

Common Stock

Rollforward of Common Stock Outstanding
in millions20182017
Shares outstanding at beginning of period1,7881,852
Treasury stock purchases1(110)(92)
Other22228
Shares outstanding at end of period1,7001,788

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 millions20182017
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 OutstandingCarrying Value
AtLiquidationAtAt
$ in millions, except per share dataDecember 31,PreferenceDecember 31,December 31,
2018per Share20182017
Series
A44,000$25,000$1,100$1,100
C1519,8821,000408408
E34,50025,000862862
F34,00025,000850850
G20,00025,000500500
H52,00025,0001,3001,300
I40,00025,0001,0001,000
J60,00025,0001,5001,500
K40,00025,0001,0001,000
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, 2Shares IssuedShares per Share Price per Share3Date4
A44,0001,000$25,000July 15, 2011
C51,160,791 N/A 1,100October 15, 2011
E34,5001,00025,000October 15, 2023
F34,0001,00025,000January 15, 2024
G20,0001,00025,000July 15, 2019
H52,0002525,000July 15, 2019
I40,0001,00025,000October 15, 2024
J60,0002525,000July 15, 2020
K40,0001,00025,000April 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 Firms 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 data201820172016
PerPerPer
Share1TotalShare1TotalShare1Total
Series
A$1,011$45$1,014$45$1,017$45
C100521005210052
E1,781611,781611,78162
F1,719581,719581,71958
G1,656331,656331,65633
H1,363711,363711,36371
I1,594641,594641,59464
J1,388831,388831,38883
K1,463591,40256N/AN/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 millionsForeign Currency Translation AdjustmentsAFS SecuritiesPensions, Postretirement and OtherDVATotal
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 period21941(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)1371,4541,205
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 millionsPre-tax Gain (Loss)Income Tax Benefit (Provision)After-tax Gain (Loss)Non-controlling InterestsNet
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$$119
Reclassified to earnings26(8)1818
Net OCI$182$(45)$137$$137
Change in net DVA
OCI activity$1,947$(472)$1,475$63$1,412
Reclassified to earnings56(14)4242
Net OCI$2,003$(486)$1,517$63$1,454

2017
$ in millionsPre-tax Gain (Loss)Income Tax Benefit (Provision)After-tax Gain (Loss)Non-controlling InterestsNet
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)$$(118)
Reclassified to earnings2(1)11
Net OCI$(191)$74$(117)$$(117)
Change in net DVA
OCI activity$(922)$325$(597)$(28)$(569)
Reclassified to earnings12(3)99
Net OCI$(910)$322$(588)$(28)$(560)

20162
$ in millionsPre-tax Gain (Loss)Income Tax Benefit (Provision)After-tax Gain (Loss)Non-controlling InterestsNet
Foreign currency translation adjustments
OCI activity$(24)$9$(15)$12$(27)
Reclassified to earnings444
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 millions2018
Revenues from contracts with customers$(32)
Derivatives and hedging—targeted improvements
to accounting for hedging activities(99)
Reclassification of certain tax effects from AOCI443
Other1(6)
Total$306
$ in millions2017
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
AtAt
December 31,December 31,
$ in millions20182017
Associated with net investments in subsidiaries
with a non-U.S. dollar functional currency$(1,851)$(1,434)
Hedges, net of tax962667
Total$(889)$(767)
Carrying value of net investments in
non-U.S. dollar functional currency
subsidiaries subject to hedges$11,608$10,139

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-K’ Filing    Date    Other Filings
4/15/27
10/15/24
1/15/24
10/15/23
7/15/20424B2,  FWP
7/15/19424B2,  FWP
6/30/1910-Q,  13F-HR
Filed on:2/26/194,  424B2,  FWP
For Period end:12/31/1811-K,  13F-HR,  FWP,  SC 13G
7/1/183
4/18/18424B2,  8-K,  FWP,  SC 13D/A
1/1/183
12/31/1710-K,  11-K,  13F-HR,  13F-HR/A
12/31/1610-K,  11-K,  13F-HR,  13F-HR/A,  FWP
1/1/163
12/31/1510-K,  11-K,  13F-HR,  424B2,  FWP,  SC 13G
10/15/11
7/15/114,  424B2,  FWP,  SC 13G
 List all Filings 


4 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/22/24  Morgan Stanley                    10-K       12/31/23  224:45M
 2/24/23  Morgan Stanley                    10-K       12/31/22  227:50M
 2/24/22  Morgan Stanley                    10-K       12/31/21  225:51M
 2/26/21  Morgan Stanley                    10-K       12/31/20  225:50M
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