Employee Benefit Plans (Tables)
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12 Months Ended |
Dec. 31, 2018 |
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| Employee Benefit Plans |
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| Components of Net Periodic Benefit Expense (Income) |
| Components of Net Periodic Benefit Expense (Income) | | | | | | | Pension Plans | | $ in millions | | 2018 | | 2017 | | 2016 | | Service cost, benefits earned during the period | $ | 16 | $ | 16 | $ | 17 | | Interest cost on projected benefit obligation | 134 | | 146 | | 150 | | Expected return on plan assets | | (112) | | (117) | | (122) | | Net amortization of prior service credit | | (1) | | — | | — | | Net amortization of actuarial loss | | 26 | | 17 | | 12 | | Net periodic benefit expense (income) | $ | 63 | $ | 62 | $ | 57 |
| | Other Postretirement Plan | | $ in millions | | 2018 | | 2017 | | 2016 | | Service cost, benefits earned during the period | $ | 1 | $ | 1 | $ | 1 | | Interest cost on projected benefit obligation | | 3 | | 3 | | 4 | | Net amortization of prior service credit | | (1) | | (16) | | (17) | | Net periodic benefit expense (income) | $ | 3 | $ | (12) | $ | (12) |
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| Rollforward of Pre-tax AOCI |
| Rollforward of Pre-tax AOCI | | | | | | | | | | Pension Plans | | $ in millions | | 2018 | | 2017 | | 2016 | | Beginning balance | $ | (947) | $ | (761) | $ | (625) | | Net gain (loss) | | 158 | | (205) | | (149) | | Prior service credit (cost) | | (15) | | 2 | | 1 | | Amortization of prior service credit | | (1) | | — | | — | | Amortization of net loss | | 26 | | 17 | | 12 | | Changes recognized in OCI | | 168 | | (186) | | (136) | | Ending balance | $ | (779) | $ | (947) | $ | (761) | | | | | | | | | | Other Postretirement Plan | | $ in millions | | 2018 | | 2017 | | 2016 | | Beginning balance | $ | 1 | $ | 17 | $ | 36 | | Net gain (loss) | | 13 | | — | | (2) | | Amortization of prior service credit | | (1) | | (16) | | (17) | | Changes recognized in OCI | | 12 | | (16) | | (19) | | Ending balance | $ | 13 | $ | 1 | $ | 17 |
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| Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense (Income) |
| Weighted Average Assumptions Used to Determine Net Periodic Benefit Expense (Income) | | | | | | | Pension Plans | | 2018 | 2017 | 2016 | | Discount rate | 3.46% | 4.01% | 4.27% | | Expected long-term rate of return on | | | | | plan assets | 3.50% | 3.52% | 3.61% | | Rate of future compensation increases | 3.38% | 3.10% | 3.19% | | | | | | Other Postretirement Plan | | 2018 | 2017 | 2016 | | Discount rate | 3.44% | 4.01% | 4.13% |
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| Rollforward of the Benefit Obligation and Fair Value of Plan Assets |
| Benefit Obligation and Funded Status | | | | | | | | | | | | | | | | Rollforward of the Benefit Obligation and Fair Value of Plan Assets | | | | | | | | | | | | | | Pension Plans | | Other Postretirement Plan | | $ in millions | | 2018 | | 2017 | | 2018 | | 2017 | | Rollforward of benefit obligation | | Benefit obligation at | | | | | | | | | beginning of year | $ | 3,966 | $ | 3,711 | $ | 86 | $ | 88 | | Service cost | | 16 | | 16 | | 1 | | 1 | | Interest cost | | 134 | | 146 | | 3 | | 3 | | Actuarial loss (gain)1 | | (340) | | 304 | | (13) | | — | | Plan amendments | | 15 | | (2) | | — | | — | | Plan settlements | | (11) | | (9) | | — | | — | | Benefits paid | | (195) | | (242) | | (6) | | (6) | | Other2 | | (22) | | 42 | | — | | — | | Benefit obligation at | | | | | | | | | | end of year | $ | 3,563 | $ | 3,966 | $ | 71 | $ | 86 | | Rollforward of fair value of plan assets | | Fair value of plan assets at | | | | | | | | | | beginning of year | $ | 3,468 | $ | 3,431 | $ | — | $ | — | | Actual return on plan assets | | (69) | | 217 | | — | | — | | Employer contributions | | 34 | | 32 | | 6 | | 6 | | Benefits paid | | (195) | | (242) | | (6) | | (6) | | Plan settlements | | (11) | | (9) | | — | | — | | Other2 | | (24) | | 39 | | — | | — | | Fair value of plan assets at | | | | | | | | | | end of year | $ | 3,203 | $ | 3,468 | $ | — | $ | — | | Funded (unfunded) | | | | | | | | | | status | $ | (360) | $ | (498) | $ | (71) | $ | (86) | | Amounts recognized in the balance sheets | | Assets | $ | 151 | $ | 87 | $ | — | $ | — | | Liabilities | | (511) | | (585) | | (71) | | (86) | | Net amount recognized | $ | (360) | $ | (498) | $ | (71) | $ | (86) |
1. Pension amounts primarily reflect the impact of year-over-year discount rate fluctuations. 2. Includes foreign currency exchange rate changes. |
| Accumulated Benefit Obligation |
| Accumulated Benefit Obligation | | | | | | | | | At | At | | December 31, | December 31, | | $ in millions | 2018 | 2017 | | Pension plans | $ | 3,546 | $ | 3,953 |
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| Pension Plans with Benefit Obligations in Excess of the Fair Value of Plan Assets |
| Pension Plans with Benefit Obligations in Excess of the Fair Value of Plan Assets | | | | | | | | At | At | | December 31, | December 31, | | $ in millions | 2018 | 2017 | | Projected benefit obligation | $ | 575 | $ | 3,676 | | Accumulated benefit obligation | | 559 | | 3,663 | | Fair value of plan assets | | 64 | | 3,091 |
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| Weighted Average Assumptions Used to Determine Benefit Obligation |
| Weighted Average Assumptions Used to Determine Benefit Obligation | | | | | | | | | Pension Plans | | Other Postretirement Plan | | At | At | | At | At | | December 31, | December 31, | | December 31, | December 31, | | 2018 | 2017 | | 2018 | 2017 | | Discount rate | 4.01% | 3.46% | | 4.07% | 3.44% | | Rate of future | | | | | | compensation | | | | | | increase | 3.34% | 3.38% | | N/A | N/A |
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| Assumed Health Care Cost Trend Rates Used to Determine the U.S. Postretirement Benefit Obligation |
| Assumed Health Care Cost Trend Rates Used to Determine the U.S. Postretirement Benefit Obligation | | | | | | | | | At | | At | | | December 31, 2018 | | December 31, 2017 | | Health care cost trend rate assumed for next year | | Medical | 5.66% | | 5.81% | | Prescription | 7.66% | | 8.49% | | Rate to which the cost trend rate is assumed | | | | to decline (ultimate trend rate) | 4.50% | | 4.50% | | Year that the rate reaches the ultimate | | | | | trend rate | 2038 | | 2038 |
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| Fair Value of Plan Assets |
| Fair Value of Plan Assets | | | | | | | | | | | | | | | | At December 31, 2018 | | $ in millions | | Level 1 | | Level 2 | | Level 3 | | Total | | Assets | | | | | | | | | | Cash and cash equivalents1 | $ | 3 | $ | — | $ | — | $ | 3 | | U.S. government and | | | | | | | | agency securities: | | | | | | | | | | U.S. Treasury securities | | 2,197 | | — | | — | | 2,197 | | U.S. agency securities | | — | | 317 | | — | | 317 | | Total U.S. government | | | | | | | | and agency securities | 2,197 | | 317 | | — | | 2,514 | | Corporate and other debt — | | | | | | | | CDO | | — | | 11 | | — | | 11 | | Derivative contracts | | — | | 22 | | — | | 22 | | Other investments | | — | | — | | 48 | | 48 | | Total | $ | 2,200 | $ | 350 | $ | 48 | $ | 2,598 | | Assets Measured at NAV | | | | | | Commingled trust funds: | | | | | | | | | | Money market | | | | | | | | 252 | | Foreign funds: | | | | | | | | | | Fixed income | | | | | | | | 134 | | Liquidity | | | | | | | | 12 | | Targeted cash flow | | | | | | | | 207 | | Total | | | | | | | $ | 605 | | Fair value of plan assets | | | | | | | $ | 3,203 | | | | | | | | | | | | | | | | At December 31, 2017 | | $ in millions | | Level 1 | | Level 2 | | Level 3 | | Total | | Assets | | | | | | | | | | Cash and cash equivalents1 | $ | 6 | $ | — | $ | — | $ | 6 | | U.S. government and | | | | | | | | | | agency securities: | | | | | | | | | | U.S. Treasury securities | | 2,398 | | — | | — | | 2,398 | | U.S. agency securities | | — | | 318 | | — | | 318 | | Total U.S. government | | | | | | | | | | and agency securities | | 2,398 | | 318 | | — | | 2,716 | | Corporate and other debt — | | | | | | | | | | CDO | | — | | 14 | | — | | 14 | | Derivative contracts | | — | | 1 | | — | | 1 | | Other investments | | — | | — | | 47 | | 47 | | Other receivables1 | | 26 | | — | | — | | 26 | | Other liabilities1 | | (11) | | (2) | | — | | (13) | | Total | $ | 2,419 | $ | 331 | $ | 47 | $ | 2,797 | | Assets Measured at NAV | | | | | | Commingled trust funds: | | | | | | | | | | Money market | | | | | | | 285 | | Foreign funds: | | | | | | | | | | Fixed income | | | | | | | | 126 | | Liquidity | | | | | | | | 41 | | Targeted cash flow | | | | | | | | 219 | | Total | | | | | | | $ | 671 | | Fair value of plan assets | | | | | | | $ | 3,468 |
1. Cash and cash equivalents, other receivables and other liabilities are valued at their carrying value, which approximates fair value. |
| Rollforward of Level 3 Plan Assets |
| Rollforward of Level 3 Plan Assets | | | | | | | | | $ in millions | | 2018 | | 2017 | | Balance at beginning of period | $ | 47 | $ | 38 | | Actual return on plan assets related | | | | to assets held at end of period | | — | | 1 | | Purchases, sales, other settlements | | | | | | and issuances, net | | 1 | | 8 | | Balance at end of period | $ | 48 | $ | 47 |
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| Expected Future Benefit Payments |
| Expected Future Benefit Payments | | | | | | | | | At December 31, 2018 | | $ in millions | Pension Plans | Other Postretirement Plan | | 2019 | $ | 139 | $ | 6 | | 2020 | | 144 | | 6 | | 2021 | | 151 | | 6 | | 2022 | | 160 | | 6 | | 2023 | | 163 | | 7 | | 2024-2028 | | 904 | | 27 |
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| Morgan Stanley 401(k) Plan and Non-U.S. Defined Contribution Pension Plans |
| Morgan Stanley 401(k) Plan | | | | | | | | | $ in millions | | 2018 | | 2017 | | 2016 | | Expense | $ | 272 | $ | 258 | $ | 250 |
| Non-U.S. Defined Contribution Pension Plans | | | | | | | | | $ in millions | | 2018 | | 2017 | | 2016 | | Expense | $ | 116 | $ | 106 | $ | 101 |
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