v2.4.0.6
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment And Geographic Information

23.       Segment and Geographic Information.

Segment Information.

The Company structures its segments primarily based upon the nature of the financial products and services provided to customers and the Company's management organization. The Company provides a wide range of financial products and services to its customers in each of its business segments: Institutional Securities, Global Wealth Management Group and Asset Management. For further discussion of the Company's business segments, see Note 1.

Revenues and expenses directly associated with each respective segment are included in determining its operating results. Other revenues and expenses that are not directly attributable to a particular segment are allocated based upon the Company's allocation methodologies, generally based on each segment's respective net revenues, non-interest expenses or other relevant measures.

As a result of treating certain intersegment transactions as transactions with external parties, the Company includes an Intersegment Eliminations category to reconcile the business segment results to the Company's consolidated results. Intersegment Eliminations also reflect the effect of fees paid by the Institutional Securities business segment to the Global Wealth Management Group business segment related to the bank deposit program.

Selected financial information for the Company's segments is presented below:

2012 Institutional Securities Global Wealth Management Group Asset Management Intersegment Eliminations Total
                 
       (dollars in millions)
Total non-interest revenues$ 12,339$ 11,904$ 2,243$ (175)$ 26,311
Net interest  (1,786)  1,612  (24)  (1)  (199)
Net revenues$ 10,553$ 13,516$ 2,219$ (176)$ 26,112
Income (loss) from continuing operations before income          
 taxes$ (1,671)$ 1,600$ 590$ (4)$ 515
Provision for (benefit from) income taxes(1)  (1,065)  559  267  —  (239)
Income (loss) from continuing operations  (606)  1,041  323  (4)  754
                 
Discontinued operations(2):          
 Gain (loss) from discontinued operations   (154)  94  13  4  (43)
 Provision for (benefit from) income taxes   (35)  26  4  —  (5)
  Net gain (loss) on discontinued operations  (119)  68  9  4  (38)
Net income (loss)  (725)  1,109  332  —  716
Net income applicable to redeemable noncontrolling          
 interests  —  124  —  —  124
Net income applicable to nonredeemable noncontrolling          
 interests  194  143  187  —  524
Net income (loss) applicable to Morgan Stanley$ (919)$ 842$ 145$ —$ 68

2011 Institutional Securities Global Wealth Management Group Asset Management Intersegment Eliminations Total
                 
       (dollars in millions)
Total non-interest revenues(3)$ 18,255$ 11,812$ 1,928$ (115)$ 31,880
Net interest  (1,080)  1,477  (41)  —  356
Net revenues$ 17,175$ 13,289$ 1,887$ (115)$ 32,236
Income from continuing operations before income          
 taxes$ 4,591$ 1,255$ 253$ —$ 6,099
Provision for income taxes   879  458  73  —  1,410
Income from continuing operations  3,712  797  180  —  4,689
                 
Discontinued operations(2):          
 Gain (loss) from discontinued operations   (205)  21  24  —  (160)
 Provision for (benefit from) income taxes   (106)  7  (17)  —  (116)
  Net gain (loss) on discontinued operations  (99)  14  41  —  (44)
Net income  3,613  811  221  —  4,645
Net income applicable to nonredeemable noncontrolling           
 interests  244  146  145  —  535
Net income applicable to Morgan Stanley$ 3,369$ 665$ 76$ —$ 4,110

2010 Institutional Securities Global Wealth Management Group Asset Management Discover Intersegment Eliminations Total
                   
       (dollars in millions)
Total non-interest revenues(3)$ 16,355$ 11,403$ 2,761$ —$ (187)$ 30,332
Net interest  (226)  1,116  (76)  —  84  898
Net revenues$ 16,129$ 12,519$ 2,685$ —$ (103)$ 31,230
Income (loss) from continuing operations            
 before income taxes$ 4,365$ 1,130$ 718$ —$ (15)$ 6,198
Provision for (benefit from) income taxes  313  328  105  —  (3)  743
Income (loss) from continuing operations  4,052  802  613  —  (12)  5,455
                   
Discontinued operations(2):            
 Gain (loss) from discontinued operations  (1,203)  26  999  775  13  610
 Provision for income taxes  13  8  335  —  7  363
  Net gain (loss) from discontinued operations(4)  (1,216)  18  664  775  6  247
Net income (loss)  2,836  820  1,277  775  (6)  5,702
Net income applicable to nonredeemable noncontrolling            
 interests  290  301  408  —  —  999
Net income (loss) applicable to Morgan Stanley$ 2,546$ 519$ 869$ 775$ (6)$ 4,703

 

(1)       Results for 2012 included an out-of-period net tax provision of approximately $107 million, attributable to the Asset Management business segment, related to the overstatement of deferred tax assets associated with partnership investments in prior years and an out-of-period net tax provision of approximately $50 million, attributable to the Institutional Securities business segment, related to the overstatement of deferred tax assets associated with repatriated earnings of a foreign subsidiary recorded in prior years (see Note 22).

(2)       See Notes 1 and 25 for discussion of discontinued operations.

(3)       In the fourth quarter of 2011 and 2010, the Company recognized a pre-tax loss of approximately $108 million and a pre-tax gain of approximately $176 million, respectively, in net revenues upon application of the OIS curve within the Institutional Securities business segment (see Note 4).

(4)       Amounts for 2010 included a loss of $1.2 billion related to the disposition of Revel included within the Institutional Securities business segment, a gain of approximately $570 million related to the Company's sale of Retail Asset Management within the Asset Management business segment and a gain of $775 million related to the legal settlement with DFS.

Net Interest Institutional Securities Global Wealth Management Group Asset Management Intersegment Eliminations Total
            
   (dollars in millions)
2012          
Interest income $ 4,128$ 2,015$ 10$ (428)$ 5,725
Interest expense   5,914  403  34  (427)  5,924
 Net interest $ (1,786)$ 1,612$ (24)$ (1)$ (199)
            
2011          
Interest income $ 5,740$ 1,863$ 10$ (355)$ 7,258
Interest expense   6,820  386  51  (355)  6,902
 Net interest $ (1,080)$ 1,477$ (41)$ —$ 356
            
2010          
Interest income $ 5,910$ 1,581$ 22$ (208)$ 7,305
Interest expense   6,136  465  98  (292)  6,407
 Net interest $ (226)$ 1,116$ (76)$ 84$ 898
            

Total Assets(1) Institutional Securities Global Wealth Management Group Asset Management Total
         
  (dollars in millions)
At December 31, 2012$ 638,852$ 134,762$ 7,346$ 780,960
At December 31, 2011$ 641,456$ 101,427$ 7,015$ 749,898

 

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

Geographic Information.

The Company operates in both U.S. and non-U.S. markets. The Company's non-U.S. business activities are principally conducted and managed through European and Asian locations. The net revenues and total assets disclosed in the following table reflect the regional view of the Company's consolidated net revenues on a managed basis, based on the following methodology:

•       Institutional Securities: advisory and equity underwriting—client location, debt underwriting—revenue recording location, sales and trading—trading desk location.

•       Global Wealth Management Group: global representative coverage location.

•       Asset Management: client location, except for Merchant Banking and Real Estate Investing businesses, which are based on asset location.

Net Revenues 2012 2011 2010
   (dollars in millions)
Americas$ 20,200$ 22,306$ 21,452
Europe, Middle East and Africa  3,078  6,619  5,458
Asia  2,834  3,311  4,320
 Net revenues $ 26,112$ 32,236$ 31,230

Total Assets At December 31, 2012 At December 31, 2011
   (dollars in millions)
Americas$ 587,993$ 558,765
Europe, Middle East and Africa  122,152  134,190
Asia  70,815  56,943
 Total$ 780,960$ 749,898