Segment and Geographic Information (Tables)

9 Months Ended

Sep. 30, 2015

Selected Financial Information by Segments

				Three Months Ended September 30, 2015
				Institutional Securities		Wealth Management		Investment Management		Intersegment Eliminations		Total

			(dollars in millions)
Total non-interest revenues(1)(2)			$	3,889	$	2,889	$	278	$	(51)	$	7,005
Interest income				825		777		—		(151)		1,451
Interest expense				810		26		4		(151)		689
	Net interest			15		751		(4)		—		762
		Net revenues	$	3,904	$	3,640	$	274	$	(51)	$	7,767
Income (loss) from continuing operations before income
	taxes		$	688	$	824	$	(38)	$	—	$	1,474
Provision for (benefit from) income taxes				141		315		(33)		—		423
Income (loss) from continuing operations				547		509		(5)		—		1,051

Discontinued operations:
	Income (loss) from discontinued operations before
		income taxes		(5)		—		1		—		(4)
	Provision for (benefit from) income taxes			(2)		—		—		—		(2)
		Income (loss) from discontinued operations		(3)		—		1		—		(2)
Net income (loss)				544		509		(4)		—		1,049
	Net income applicable to nonredeemable noncontrolling
		interests		26		—		5		—		31
Net income (loss) applicable to Morgan Stanley			$	518	$	509	$	(9)	$	—	$	1,018

				Three Months Ended September 30, 2014
				Institutional Securities		Wealth Management(3)		Investment Management(3)		Intersegment Eliminations		Total

			(dollars in millions)
Total non-interest revenues(1)(4)(5)			$	4,560	$	3,174	$	668	$	(52)	$	8,350
Interest income				859		649		—		(124)		1,384
Interest expense				903		50		1		(127)		827
	Net interest			(44)		599		(1)		3		557
		Net revenues	$	4,516	$	3,773	$	667	$	(49)	$	8,907
Income from continuing operations before income
taxes			$	1,227	$	800	$	193	$	—	$	2,220
Provision for income taxes(6)				89		321		53		—		463
Income from continuing operations				1,138		479		140		—		1,757

Discontinued operations:
	Income (loss) from discontinued operations before income
		taxes		(9)		—		1		—		(8)
	Provision for (benefit from) income taxes			(3)		—		—		—		(3)
		Income (loss) from discontinued operations		(6)		—		1		—		(5)
Net income				1,132		479		141		—		1,752
	Net income applicable to nonredeemable noncontrolling
		interests		41		—		18		—		59
Net income applicable to Morgan Stanley			$	1,091	$	479	$	123	$	—	$	1,693

				Nine Months Ended September 30, 2015
				Institutional Securities		Wealth Management		Investment Management		Intersegment Eliminations		Total

			(dollars in millions)
Total non-interest revenues(1)(2)			$	14,640	$	9,172	$	1,709	$	(160)	$	25,361
Interest income				2,418		2,296		1		(394)		4,321
Interest expense				2,524		119		16		(394)		2,265
	Net interest			(106)		2,177		(15)		—		2,056
		Net revenues	$	14,534	$	11,349	$	1,694	$	(160)	$	27,417

Income from continuing operations before income
	taxes		$	4,123	$	2,564	$	369	$	—	$	7,056
Provision for income taxes(6)				658		959		87		—		1,704
Income from continuing operations				3,465		1,605		282		—		5,352

Discontinued operations:
	Income (loss) from discontinued operations before
		income taxes		(14)		—		1		—		(13)
	Provision for (benefit from) income taxes			(4)		—		—		—		(4)
		Income (loss) from discontinued operations		(10)		—		1		—		(9)
Net income				3,455		1,605		283		—		5,343
	Net income applicable to nonredeemable
		noncontrolling interests		100		—		24		—		124
Net income applicable to Morgan Stanley			$	3,355	$	1,605	$	259	$	—	$	5,219

				Nine Months Ended September 30, 2014
				Institutional Securities		Wealth Management(3)		Investment Management(3)		Intersegment Eliminations		Total

			(dollars in millions)
Total non-interest revenues(1)(4)(5)			$	14,016	$	9,370	$	2,136	$	(143)	$	25,379
Interest income				2,498		1,846		2		(369)		3,977
Interest expense				3,073		132		14		(374)		2,845
	Net interest			(575)		1,714		(12)		5		1,132
		Net revenues	$	13,441	$	11,084	$	2,124	$	(138)	$	26,511
Income from continuing operations before income
	taxes		$	3,603	$	2,249	$	670	$	—	$	6,522
Provision for income taxes(6)				171		882		210		—		1,263
Income from continuing operations				3,432		1,367		460		—		5,259

Discontinued operations:
	Income (loss) from discontinued operations before
		income taxes		(18)		—		7		—		(11)
	Provision for (benefit from) income taxes			(7)		—		2		—		(5)
		Income (loss) from discontinued operations		(11)		—		5		—		(6)
Net income				3,421		1,367		465		—		5,253
	Net income applicable to nonredeemable noncontrolling
		interests		77		—		79		—		156
Net income applicable to Morgan Stanley			$	3,344	$	1,367	$	386	$	—	$	5,097

In certain management fee arrangements, the Company is entitled to receive performance-based fees (also referred to as incentive fees) when the return on assets under management exceeds certain benchmark returns or other performance targets. In such arrangements, performance fee revenue is accrued (or reversed) quarterly based on measuring account fund performance to date versus the performance benchmark stated in the investment management agreement. The Company’s portion of unrealized cumulative performance-based fee revenue at risk of reversing if fund performance falls below stated investment management agreement benchmarks was approximately $456 million at September 30, 2015 and approximately $634 million at December 31, 2014 (see Note 2 to the Company’s consolidated financial statements in the 2014 Form 10-K). See also Note 11 for information regarding general partner guarantees which include potential obligations to return performance fee distributions previously received.
During the quarter and nine months ended September 30, 2015, Other revenues included losses within the Company’s Institutional Securities business segment as a result of write-downs on loans and lending commitments held for sale, which were partially offset by gains on the sales of investment securities within the Company’s Wealth Management business segment.

(3) On October 1, 2014, the Managed Futures business was transferred from the Company’s Wealth Management business segment to the Company’s Investment Management business segment. All prior-period amounts have been recast to conform to the current year’s presentation.

(4) In September 2014, the Company sold a retail property space resulting in a gain on sale of $141 million (within Institutional Securities $84 million, Wealth Management $40 million and Investment Management $17 million), which was included within Other revenues on the condensed consolidated statement of income.

(5) On July 1, 2014, the Company completed the sale of its ownership stake in TransMontaigne. The gain on sale, which was included in continuing operations, was approximately $101 million (within the Company’s Institutional Securities business segment) for the quarter and nine months ended September 30, 2014.

(6) The Company’s effective tax rate from continuing operations for the nine months ended September 30, 2015 included a net discrete tax benefit of $564 million (within the Company’s Institutional Securities business segment). The Company’s effective tax rate from continuing operations for the quarter and nine months ended September 30, 2014 included a net discrete tax benefit of $237 million and $846 million, respectively (primarily within the Company’s Institutional Securities business segment) (see Note 18).

Assets by Segments

Total Assets(1)		Institutional Securities		Wealth Management		Investment Management		Total

		(dollars in millions)
At September 30, 2015	$	658,867	$	170,295	$	4,951	$	834,113
At December 31, 2014	$	630,341	$	165,147	$	6,022	$	801,510

(1) Corporate assets have been fully allocated to the Company’s business segments.

Net Revenues by Geographic Area

			Three Months Ended				Nine Months Ended
			September 30,				September 30,
Net Revenues			2015		2014		2015		2014
			(dollars in millions)
Americas		$	5,652	$	6,308	$	19,359	$	19,022
EMEA			1,198		1,271		4,396		4,191
Asia-Pacific			917		1,328		3,662		3,298
	Net revenues	$	7,767	$	8,907	$	27,417	$	26,511