Net Revenues.
The Wealth Management business segment’s net revenues are composed of Transactional, Asset management, Net interest and Other revenues.
Transactional revenues include Investment banking, Trading, and Commissions and fees.
Asset management revenues include Asset management, distribution and administration fees, and referral fees related to the bank deposit program.
Net interest revenues include net interest revenues related to the bank deposit program, interest on securities available for sale and all other net interest revenues.
Other revenues include revenues from available for sale securities, customer account services fees, other miscellaneous revenues and revenues from Investments.
## Table 0 ##
(1) Prior-period amounts have been recast to reflect the transfer of the International Wealth Management business from the Wealth Management business segment to the Institutional Securities business segment.
Wealth Management JV.
On June 28, 2013, the Company completed the purchase of the remaining 35% stake in the Wealth Management JV for $4.725 billion.
As the 100% owner of the Wealth Management JV, the Company retains all of the related net income previously applicable to the noncontrolling interests in the Wealth Management JV, and benefit from the termination of certain related debt and operating agreements with the Wealth Management JV partner.
Concurrent with the acquisition of the remaining 35% stake in the Wealth Management JV, the deposit sweep agreement between Citi and the Company was terminated.
In 2013, $26 billion of deposits held by Citi relating to customer accounts were transferred to the Company’s depository institutions.
At December 31, 2013, approximately $30 billion of additional deposits are scheduled to be transferred to the Company’s depository institutions on an agreed-upon basis through June 2015.
For further information, see Note 3 to the consolidated financial statements in Item 8.2013 compared with 2012.
Transactional.
Investment Banking.
Wealth Management business segment’s investment banking revenues include revenues from the distribution of equity and fixed income securities, including initial public offerings, secondary offerings, closed-end funds and unit trusts.
Investment banking revenues increased 11% from 2012 to $923 million in 2013, primarily due to higher levels of underwriting activity in closed-end funds and unit trusts.
Trading.
Trading revenues include revenues from customers’ purchases and sales of financial instruments in which the Company acts as principal and gains and losses on the Company’s inventory positions, which are held primarily to facilitate customer transactions and gains and losses associated with certain employee deferred compensation plans.
Trading revenues increased 11% from 2012 to $1,161 million in 2013, primarily due to gains related to investments associated with certain employee deferred compensation plans and higher revenues from fixed income products.
Commissions and Fees.
Commissions and fees revenues primarily arise from agency transactions in listed and OTC equity securities and sales of mutual funds, futures, insurance products and options.
Commissions and fees revenues increased 6% from 2012 to $2,209 million in 2013, primarily due to higher equity, mutual fund and alternatives activity
Notes to Consolidated Financial Statements 21.
Segment and Geographic Information Segment Information The Firm structures its segments primarily based upon the nature of the financial products and services provided to customers and its management organization.
The Firm provides a wide range of financial products and services to its customers in each of the business segments: Institutional Securities, Wealth Management and Investment Management.
For a further discussion of the business segments, see Note 1.
Revenues and expenses directly associated with each respective business segment are included in determining its operating results.
Other revenues and expenses that are not directly attributable to a particular business segment are allocated based upon the Firm’s allocation methodologies, generally based on each business segment’s respective net revenues, non-interest expenses or other relevant measures.
As a result of revenues and expenses from transactions with other operating segments being treated as transactions with external parties, the Firm includes an Intersegment Eliminations category to reconcile the business segment results to the consolidated results.
Selected Financial Information by Business Segment
## Table 1 ##
Morgan Stanley
## Table 2 ##
$ in millions
## Table 3 ##
I/E—Intersegment Eliminations 1.
For information on fee waivers, see the table below.2.
For information on net unrealized performance-based fees see the table below.3.
The Firm’s effective tax rate from continuing operations included net discrete tax provisions (benefits).
See table below for further information.
Management’s Discussion and Analysis Supplemental Financial Information and Disclosures Income Tax Matters Effective Tax Rate from Continuing Operations
## Table 4 ##
1.
Beginning in 2017, income tax consequences associated with employee share-based awards are recognized in Provision for income taxes in the income statements but are excluded from the intermittent net discrete tax provisions (benefits) adjustment as we anticipate conversion activity each year.
See Note 2 to the financial statements on the adoption of the accounting update Improvements to Employee Share-Based Payment Accounting.
For 2015, adjusted effective income tax rate also excludes DVA.
For further information on non-GAAP measures, see “Selected Non-GAAP Financial Information” herein.2017 The effective tax rate from continuing operations for 2017 included an intermittent net discrete tax provision of $968 million, primarily related to the impact of the Tax Act, partially offset by net discrete tax benefits primarily associated with the remeasurement of reserves and related interest due to new information regarding the status of multi-year IRS tax examinations.
The Tax Act, enacted on December 22, 2017, significantly revised U. S.  corporate income tax law by, among other things, reducing the corporate income tax rate to 21%, and implementing a modified territorial tax system that includes a one-time transition tax on deemed repatriated earnings of non-U.
S.  subsidiaries; imposes a minimum tax on global intangible low-taxed income (“GILTI”) and an alternative base erosion and anti-abuse tax (“BEAT”) on U. S.  corporations that make deductible payments to non-U.
S.  related persons in excess of specified amounts; and broadens the tax base by partially or wholly eliminating tax deductions for certain historically deductible expenses (e. g. , FDIC premiums and executive compensation).
We recorded an approximate $1.2 billion net discrete tax provision as a result of the enactment of the Tax Act, primarily from the remeasurement of certain deferred tax assets using the lower enacted corporate tax rate.
This provision incorporates the best available information as of the enactment date as well as assumptions made based upon our current interpretation of the Tax Act.
Our estimates may change as we receive additional clarification and implementation guidance from the U. S.  Treasury Department and as the interpretation of the Tax Act evolves over time.
The ultimate impact of the income tax effects of the Tax Act will be determined in connection with the preparation of our U. S.  consolidated federal income tax return.
Taking into account our current assumptions, estimates and interpretations related to the Tax Act and other factors, we expect our effective tax rate from continuing operations for 2018 to be approximately 22% to 25%, depending on factors such as the geographic mix of earnings and employee sharebased awards (see “Forward-Looking Statements”).
Subsequent to the release of the Firm’s 2017 earnings on January 18, 2018, certain estimates related to the net discrete tax provision associated with the enactment of the Tax Act were revised, resulting in a $43 million increase in the Provision for income taxes and a reallocation of impacts among segments.
This decreased diluted EPS and diluted EPS from continuing operations by $0.03 and $0.02 in the fourth quarter and year ended December 31, 2017, respectively.
On a business segment basis, the change resulted in an $89 million increase in Provision for income taxes for Wealth Management, a $45 million decrease for Institutional Securities, and a $1 million decrease for Investment Management.2016 The effective tax rate from continuing operations for 2016 included intermittent net discrete tax benefits of $68 million, primarily related to the remeasurement of reserves and related interest due to new information regarding the status of multiyear IRS tax examinations, partially offset by adjustments for other tax matters.2015 The effective tax rate from continuing operations for 2015 included intermittent net discrete tax benefits of $564 million, primarily associated with the repatriation of non-U.
S.  earnings at a cost lower than originally estimated due to an internal restructuring to simplify the legal entity organization in the U. K.  U. S.  Bank Subsidiaries We provide loans to a variety of customers, from large corporate and institutional clients to high net worth individuals, primarily through our U. S.  bank subsidiaries, Morgan Stanley Bank N. A.
(“MSBNA”) and Morgan Stanley Private Bank, National Association (“MSPBNA”) (collectively, “U.
S.  Bank Subsidiaries”).
The lending activities in the Institutional Securities business segment primarily include loans and lending commitments to corporate clients.
The lending activities in the Wealth Management business segment primarily include securities-based lending that allows clients to borrow
Management’s Discussion and Analysis environment, for example, to incorporate changes in stress testing or enhancements to modeling techniques.
We will continue to evaluate the framework with respect to the impact of future regulatory requirements, as appropriate.
Average Common Equity Attribution1
## Table 5 ##
1.
Average common equity is a non-GAAP financial measure.
See “Selected Non-GAAP Financial Information” herein.
Regulatory Developments Resolution and Recovery Planning Pursuant to the Dodd-Frank Act, we are required to periodically submit to the Federal Reserve and the FDIC a resolution plan that describes our strategy for a rapid and orderly resolution under the U. S.  Bankruptcy Code in the event of our material financial distress or failure.
Our preferred resolution strategy, which is set out in our 2017 resolution plan, is an SPOE strategy.
We submitted our full 2017 resolution plan on June 30, 2017.
As indicated in our 2017 resolution plan, the Parent Company has amended and restated its support agreement with its material entities, as defined in our 2017 resolution plan.
Under the secured amended and restated support agreement, upon the occurrence of a resolution scenario, the Parent Company would be obligated to contribute or loan on a subordinated basis all of its contributable material assets, other than shares in subsidiaries of the Parent Company and certain intercompany receivables, to provide capital and liquidity, as applicable, to our material entities.
The obligations of the Parent Company under the secured amended and restated support agreement are in most cases secured on a senior basis by the assets of the Parent Company (other than shares in subsidiaries of the Parent Company).
As a result, claims of our material entities against the assets of the Parent Company (other than shares in subsidiaries of the Parent Company) are effectively senior to unsecured obligations of the Parent Company.
In December 2017, we received joint feedback on our 2017 resolution plan from the Federal Reserve and the FDIC.
The feedback identified no deficiencies in our 2017 resolution plan but noted one shortcoming to be remediated in our next resolution plan submission.
Further, the Federal Reserve and the FDIC have extended the next resolution plan filing deadline for eight large domestic banks, including us, by one year to July 1, 2019.
For more information about resolution and recovery planning requirements and our activities in these areas, including the implications of such activities in a resolution scenario, see “Business—Supervision and Regulation—Financial Holding Company—Resolution and Recovery Planning” and “Risk Factors—Legal, Regulatory and Compliance Risk.
” Legacy Covered Funds under the Volcker Rule The Volcker Rule prohibits “banking entities,” including us and our affiliates, from engaging in certain “proprietary trading” activities, as defined in the Volcker Rule, subject to exemptions for underwriting, market-making-related activities, risk-mitigating hedging and certain other activities.
The Volcker Rule also prohibits certain investments and relationships by banking entities with “covered funds,” with a number of exemptions and exclusions.
In June 2017, we received approval from the Federal Reserve of our application for a five-year extension of the transition period to conform investments in certain legacy Volcker covered funds that are also illiquid funds.
The approval covered essentially all of our non-conforming investments in, and relationships with, legacy covered funds subject to the Volcker Rule.
For more information about the Volcker Rule, see “Business—Supervision and Regulation—Activities Restrictions under the Volcker Rule.
” U. S.  Department of Labor Conflict of Interest Rule The U. S.  DOL’s final Conflict of Interest Rule under ERISA went into effect on June 9, 2017, with certain aspects subject to phased-in compliance.
Full compliance with the rule’s related exemptions is currently scheduled to be required by July 1, 2019.
In addition, the U. S.  DOL is undertaking an examination of the rule that may result in changes to the rule or its related exemptions or a change in the full compliance date.
For a discussion of the U. S.  DOL Conflict of Interest Rule, see “Business—Supervision and Regulation—Institutional Securities and Wealth Management.
” U. K.  Referendum Following the U. K.  electorate vote to leave the E. U. , the U. K.  invoked Article 50 of the Lisbon Treaty on March 29, 2017, which triggered a two-year period, subject to extension (which would need the unanimous approval of the E. U.
Member States), during which the U. K.  government is expected to negotiate its withdrawal agreement with the E. U.
For further discussion of U. K.  referendum’s potential impact on our operations, see “Risk Factors—International Risk.
” For further information regarding our exposure to the U. K. , see also “Quantitative and Qualitative Disclosures about Market Risk—Risk Management—Credit Risk—Country Risk Exposure.
”
Management’s Discussion and Analysis Expected Replacement of London Interbank Offered Rate Central banks around the world, including the Federal Reserve, have commissioned working groups of market participants and others with the goal of finding suitable replacements for LIBOR based on observable market transactions.
It is expected that a transition away from the widespread use of LIBOR to alternative rates will occur over the course of the next few years.
Effects of Inflation and Changes in Interest and Foreign Exchange Rates To the extent that an increased inflation outlook results in rising interest rates or has negative impacts on the valuation of financial instruments that exceed the impact on the value of our liabilities, it may adversely affect our financial position and profitability.
Rising inflation may also result in increases in our non-interest expenses that may not be readily recoverable in higher prices of services offered.
Other changes in the interest rate environment and related volatility, as well as expectations about the level of future interest rates, could also impact our results of operations.
A significant portion of our business is conducted in currencies other than the U. S.  dollar, and changes in foreign exchange rates relative to the U. S.  dollar, therefore, can affect the value of non-U.
S.  dollar net assets, revenues and expenses.
Potential exposures as a result of these fluctuations in currencies are closely monitored, and, where cost-justified, strategies are adopted that are designed to reduce the impact of these fluctuations on our financial performance.
These strategies may include the financing of non-U.
S.  dollar assets with direct or swap-based borrowings in the same currency and the use of currency forward contracts or the spot market in various hedging transactions related to net assets, revenues, expenses or cash flows.
For information about cumulative foreign currency translation adjustments, see Note 15 to the financial statements.
Off-Balance Sheet Arrangements and Contractual Obligations Off-Balance Sheet Arrangements We enter into various off-balance sheet arrangements, including through unconsolidated SPEs and lending-related financial instruments (e. g. , guarantees and commitments), primarily in connection with the Institutional Securities and Investment Management business segments.
We utilize SPEs primarily in connection with securitization activities.
For information on our securitization activities, see Note 13 to the financial statements.
For information on our commitments, obligations under certain guarantee arrangements and indemnities, see Note 12 to the financial statements.
For further information on our lending commitments, see “Quantitative and Qualitative Disclosures about Market Risk—Risk Management—Credit Risk—Lending Activities.
” Contractual Obligations In the normal course of business, we enter into various contractual obligations that may require future cash payments.
Contractual obligations include certain borrowings, other secured financings, contractual interest payments, contractual payments on time deposits, operating leases and purchase obligations.
Contractual Obligations

<table><tr><td></td><td> 2013</td><td> 2012-1</td><td> 2011-1</td></tr><tr><td></td><td colspan="3"> (dollars in millions)</td></tr><tr><td>Net revenues:</td><td></td><td></td><td></td></tr><tr><td>Transactional</td><td>$4,293</td><td>$3,958</td><td>$4,221</td></tr><tr><td>Asset management</td><td>7,638</td><td>7,190</td><td>6,709</td></tr><tr><td>Net interest</td><td>1,880</td><td>1,567</td><td>1,432</td></tr><tr><td>Other</td><td>403</td><td>319</td><td>410</td></tr><tr><td>Net revenues</td><td>$14,214</td><td>$13,034</td><td>$12,772</td></tr></table>
<table><tr><td></td><td colspan="5"> 2017</td></tr><tr><td><i>$ in millions</i></td><td>IS</td><td>WM</td><td>IM<sup>1, 2</sup></td><td>I/E</td><td>Total</td></tr><tr><td>Total non-interest revenues</td><td>$19,622</td><td>$12,731</td><td>$2,586</td><td>$-294</td><td>$34,645</td></tr><tr><td>Interest income</td><td>5,377</td><td>4,591</td><td>4</td><td>-975</td><td>8,997</td></tr><tr><td>Interest expense</td><td>6,186</td><td>486</td><td>4</td><td>-979</td><td>5,697</td></tr><tr><td>Net interest</td><td>-809</td><td>4,105</td><td>—</td><td>4</td><td>3,300</td></tr><tr><td> Net revenues</td><td>$18,813</td><td>$16,836</td><td>$2,586</td><td>$-290</td><td>$37,945</td></tr><tr><td>Income from continuing operations before income taxes</td><td>$5,644</td><td>$4,299</td><td>$456</td><td>$4</td><td>$10,403</td></tr><tr><td>Provision for income taxes<sup>3</sup></td><td>1,993</td><td>1,974</td><td>201</td><td>—</td><td>4,168</td></tr><tr><td>Income from continuing operations</td><td>3,651</td><td>2,325</td><td>255</td><td>4</td><td>6,235</td></tr><tr><td>Income (loss) from discontinued operations, net of incometaxes</td><td>-19</td><td>—</td><td>—</td><td>—</td><td>-19</td></tr><tr><td>Net income</td><td>3,632</td><td>2,325</td><td>255</td><td>4</td><td>6,216</td></tr><tr><td>Net income applicable to noncontrolling interests</td><td>96</td><td>—</td><td>9</td><td>—</td><td>105</td></tr><tr><td> Net income applicable to Morgan Stanley</td><td>$3,536</td><td>$2,325</td><td>$246</td><td>$4</td><td>$6,111</td></tr></table>
<table><tr><td></td><td colspan="5">2016</td></tr><tr><td><i>$ in millions</i></td><td>IS 4</td><td>WM<sup>4</sup></td><td>IM 1, 2</td><td>I/E</td><td>Total</td></tr><tr><td>Total non-interest revenues</td><td>$17,294</td><td>$11,821</td><td>$2,108</td><td>$-290</td><td>$30,933</td></tr><tr><td>Interest income</td><td>4,005</td><td>3,888</td><td>5</td><td>-882</td><td>7,016</td></tr><tr><td>Interest expense</td><td>3,840</td><td>359</td><td>1</td><td>-882</td><td>3,318</td></tr><tr><td>Net interest</td><td>165</td><td>3,529</td><td>4</td><td>—</td><td>3,698</td></tr><tr><td> Net revenues</td><td>$17,459</td><td>$15,350</td><td>$2,112</td><td>$-290</td><td>$34,631</td></tr><tr><td>Income from continuing operations before income taxes</td><td>$5,123</td><td>$3,437</td><td>$287</td><td>$1</td><td>$8,848</td></tr><tr><td>Provision for income taxes<sup>3</sup></td><td>1,318</td><td>1,333</td><td>75</td><td>—</td><td>2,726</td></tr><tr><td>Income from continuing operations</td><td>3,805</td><td>2,104</td><td>212</td><td>1</td><td>6,122</td></tr><tr><td>Income (loss) from discontinued operations, net of incometaxes</td><td>-1</td><td>—</td><td>2</td><td>—</td><td>1</td></tr><tr><td>Net income</td><td>3,804</td><td>2,104</td><td>214</td><td>1</td><td>6,123</td></tr><tr><td>Net income (loss) applicable to noncontrolling interests</td><td>155</td><td>—</td><td>-11</td><td>—</td><td>144</td></tr><tr><td> Net income applicable to Morgan Stanley</td><td>$3,649</td><td>$2,104</td><td>$225</td><td>$1</td><td>$5,979</td></tr></table>
<table><tr><td></td><td colspan="5">2015</td></tr><tr><td><i>$ in millions</i></td><td>IS 4</td><td>WM<sup>4</sup></td><td>IM 1</td><td>I/E</td><td>Total</td></tr><tr><td>Totalnon-interest revenues</td><td>$17,800</td><td>$12,144</td><td>$2,331</td><td>$-213</td><td>$32,062</td></tr><tr><td>Interest income</td><td>3,190</td><td>3,105</td><td>2</td><td>-462</td><td>5,835</td></tr><tr><td>Interest expense</td><td>3,037</td><td>149</td><td>18</td><td>-462</td><td>2,742</td></tr><tr><td>Net interest</td><td>153</td><td>2,956</td><td>-16</td><td>—</td><td>3,093</td></tr><tr><td> Net revenues</td><td>$17,953</td><td>$15,100</td><td>$2,315</td><td>$-213</td><td>$35,155</td></tr><tr><td>Income from continuing operations before income taxes</td><td>$4,671</td><td>$3,332</td><td>$492</td><td>$—</td><td>$8,495</td></tr><tr><td>Provision for income taxes<sup>3</sup></td><td>825</td><td>1,247</td><td>128</td><td>—</td><td>2,200</td></tr><tr><td>Income from continuing operations</td><td>3,846</td><td>2,085</td><td>364</td><td>—</td><td>6,295</td></tr><tr><td>Income (loss) from discontinued operations, net of incometaxes</td><td>-17</td><td>—</td><td>1</td><td>—</td><td>-16</td></tr><tr><td>Net income</td><td>3,829</td><td>2,085</td><td>365</td><td>—</td><td>6,279</td></tr><tr><td>Net income applicable to noncontrolling interests</td><td>133</td><td>—</td><td>19</td><td>—</td><td>152</td></tr><tr><td> Net income applicable to Morgan Stanley</td><td>$3,696</td><td>$2,085</td><td>$346</td><td>$—</td><td>$6,127</td></tr></table>
<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>U.S. GAAP</td><td>40.1%</td><td>30.8%</td><td>25.9%</td></tr><tr><td>Adjusted effective income taxrate—non-GAAP<sup>1</sup></td><td>30.8%</td><td>31.6%</td><td>32.3%</td></tr></table>
<table><tr><td><i>$ in billions</i></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Institutional Securities</td><td>$40.2</td><td>$43.2</td><td>$34.6</td></tr><tr><td>Wealth Management</td><td>17.2</td><td>15.3</td><td>11.2</td></tr><tr><td>Investment Management</td><td>2.4</td><td>2.8</td><td>2.2</td></tr><tr><td>Parent Company</td><td>10.0</td><td>7.6</td><td>18.9</td></tr><tr><td>Total</td><td>$69.8</td><td>$68.9</td><td>$66.9</td></tr></table>

Question: How many Income from continuing operations before income taxes exceed the average of Income from continuing operations before income taxes in 2016?