SELECTED FINANCIAL DATA The selected fi nancial data set forth below should be read in conjunction with, and is qualifi ed by reference to, Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated fi nancial statements and related notes included in this report.
The selected fi nancial data below, with the exception of store counts and same store sales growth, have been derived from the audited consolidated fi nancial statements of Domino’s Pizza, Inc.  and subsidiaries.
These historical data are not necessarily indicative of results to be expected for any future period.
## Table 0 ##
write-offs will not exceed historical rates.
Specifi cally, if the fi nancial condition of our franchisees were to deteriorate resulting in an impairment of their ability to make payments, additional allowances may be required.
Long-lived and intangible assets.
We record long-lived assets, including property, plant and equipment and capitalized software, at cost.
For acquisitions of franchise operations, we estimate the fair values of the assets and liabilities acquired based on physical inspection of assets, historical experience and other information available to us regarding the acquisition.
We depreciate and amortize long-lived assets using useful lives determined by us based on historical experience and other information available to us.
We review long-lived assets for impairment when events or circumstances indicate that the related amounts might be impaired.
We perform related impairment tests on a market level basis for Companyowned stores.
At December 31, 2006, we determined that our long-lived assets were not impaired.
However, if our future operating performance were to deteriorate, we may be required to recognize an impairment charge.
We evaluate goodwill for impairment by comparing the fair value of our reporting units to their carrying values.
A signifi cant portion of our goodwill relates to acquisitions of domestic franchise stores and is included in our domestic stores segment.
At December 31, 2006, the fair value of our business operations with associated goodwill exceeded their recorded carrying value, including the related goodwill.
However, if the future performance of our domestic Company-owned stores or other reporting units were to deteriorate, we may be required to recognize a goodwill impairment charge.
Insurance and legal matters.
We are a party to lawsuits and legal proceedings arising in the ordinary course of business.
Management closely monitors these legal matters and estimates the probable costs for the resolution of such matters.
These estimates are primarily determined by consulting with both internal and external parties handling the matters and are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies.
If our estimates relating to legal matters proved inaccurate for any reason, we may be required to increase or decrease the related expense in future periods.
For certain periods prior to December 1998 and for periods after December 2001, we maintain insurance coverage for workers’ compensation, general liability and owned and non-owned auto liability under insurance policies requiring payment of a deductible for each occurrence up to between $500,000 and $3.0 million, depending on the policy year and line of coverage.
The related insurance reserves are based on undiscounted independent actuarial estimates, which are based on historical information along with assumptions about future events.
Changes in assumptions for such factors as medical costs and legal actions, as well as changes in actual experience, could cause these estimates to change in the near term which could result in an increase or decrease in the related expense in future periods.
Income taxes.
Our net deferred tax assets assume that we will generate suffi cient taxable income in specifi c tax jurisdictions, based on estimates and assumptions.
The amounts relating to taxes recorded on the balance sheet, including tax reserves, also consider the ultimate resolution of revenue agent reviews based on estimates and assumptions.
If these estimates and assumptions change in the future, we may be required to adjust our valuation allowance or other tax reserves resulting in additional income tax expense or benefi t in future periods.
SAME STORE SALES GROWTH
## Table 1 ##
Management’s Discussion and Analysis Fully Phased-in Capital Ratios The table below presents our estimated ratio of CET1 to RWAs calculated under the Basel III Advanced Rules and the Standardized Capital Rules on a fully phased-in basis.
## Table 2 ##
Although the fully phased-in capital ratios are not applicable until 2019, we believe that the estimated ratios in the table above are meaningful because they are measures that we, our regulators and investors use to assess our ability to meet future regulatory capital requirements.
The estimated fully phased-in Basel III Advanced and Standardized CET1 ratios are non-GAAP measures as of both December 2014 and December 2013 and may not be comparable to similar non-GAAP measures used by other companies (as of those dates).
These estimated ratios are based on our current interpretation, expectations and understanding of the Revised Capital Framework and may evolve as we discuss its interpretation and application with our regulators.
See Note 20 to the consolidated financial statements for information about our transitional capital ratios, which represent our binding ratios as of December 2014.
In the table above: ‰ The deduction for goodwill and identifiable intangible assets, net of deferred tax liabilities, represents goodwill of $3.65 billion and $3.71 billion as of December 2014 and December 2013, respectively, and identifiable intangible assets of $515 million and $671 million as of December 2014 and December 2013, respectively, net of associated deferred tax liabilities of $964 million and $908 million as of December 2014 and December 2013, respectively.
‰ The deduction for investments in nonconsolidated financial institutions represents the amount by which our investments in the capital of nonconsolidated financial institutions exceed certain prescribed thresholds.
The decrease from December 2013 to December 2014 primarily reflects reductions in our fund investments.
‰ Other adjustments primarily include the overfunded portion of our defined benefit pension plan obligation, net of associated deferred tax liabilities, and disallowed deferred tax assets, credit valuation adjustments on derivative liabilities and debt valuation adjustments, as well as other required credit risk-based deductions.
Supplementary Leverage Ratio The Revised Capital Framework introduces a new supplementary leverage ratio for Advanced approach banking organizations.
Under amendments to the Revised Capital Framework, the U. S.  federal bank regulatory agencies approved a final rule that implements the supplementary leverage ratio aligned with the definition of leverage established by the Basel Committee.
The supplementary leverage ratio compares Tier 1 capital to a measure of leverage exposure, defined as the sum of our quarterly average assets less certain deductions plus certain off-balance-sheet exposures, including a measure of derivatives exposures and commitments.
The Revised Capital Framework requires a minimum supplementary leverage ratio of 5.0% (comprised of the minimum requirement of 3.0% and a 2.0% buffer) for U. S.  banks deemed to be G-SIBs, effective on January 1, 2018.
Certain disclosures regarding the supplementary leverage ratio are required beginning in the first quarter of 2015.
As of December 2014, our estimated supplementary leverage ratio was 5.0%, including Tier 1 capital on a fully phased-in basis of $73.17 billion (CET1 of $64.26 billion plus perpetual non-cumulative preferred stock of $9.20 billion less other adjustments of $290 million) divided by total leverage exposure of $1.45 trillion (total quarterly average assets of $873 billion plus adjustments of $579 billion, primarily comprised of off-balance-sheet exposure related to derivatives and commitments).
We believe that the estimated supplementary leverage ratio is meaningful because it is a measure that we, our regulators and investors use to assess our ability to meet future regulatory capital requirements.
The supplementary leverage ratio is a non-GAAP measure and may not be comparable to similar non-GAAP measures used by other companies.
This estimated supplementary leverage ratio is based on our current interpretation and understanding of the U. S.  federal bank regulatory agencies’ final rule and may evolve as we discuss its interpretation and application with our regulators.
Long-term borrowings at December 31, 2013 consisted of the following:
## Table 3 ##
Long-Term Borrowing Activity in 2013.
During 2013, the Company issued and reissued notes with a principal amount of approximately $28 billion.
This amount included the Company’s issuance of $2.0 billion in subordinated debt on November 22, 2013, $2.0 billion in subordinated debt on May 21, 2013, $3.7 billion in senior unsecured debt on April 25, 2013 and $4.5 billion in senior unsecured debt on February 25, 2013.
In connection with the note issuances, the Company generally enters into certain transactions to obtain floating interest rates.
The weighted average maturity of the Company’s long-term borrowings, based upon stated maturity dates, was approximately 5.4 years at December 31, 2013.
During 2013, approximately $39 billion in aggregate long-term borrowings matured or were retired.
Subsequent to December 31, 2013 and through February 10, 2014, the Company’s long-term borrowings (net of issuances) decreased by approximately $2.2 billion.
This amount includes the Company’s issuance of $2.8 billion in senior debt on January 24, 2014.  Credit Ratings.
The Company relies on external sources to finance a significant portion of its day-to-day operations.
The cost and availability of financing generally is impacted by the Company’s credit ratings.
In addition, the Company’s credit ratings can have an impact on certain trading revenues, particularly in those businesses where longer term counterparty performance is a key consideration, such as OTC derivative transactions, including credit derivatives and interest rate swaps.
Rating agencies will look at company specific factors; other industry factors such as regulatory or legislative changes; the macro-economic environment and perceived levels of government support, among other things.
Some rating agencies have stated that they currently incorporate various degrees of credit rating uplift from external sources of potential support, as well as perceived government support of systemically important banks, including the credit ratings of the Company.
Rating agencies continue to monitor the progress of U. S.  financial reform legislation to assess whether the possibility of extraordinary government support for the financial system in any future financial crises is negatively impacted.
Legislative and rulemaking outcomes may lead to reduced uplift assumptions for U. S.  banks and thereby place downward pressure on credit ratings.
For example, in November 2013, Moody’s Investor Services, Inc.  (“Moody’s”) took certain ratings actions with respect to eight large U. S.  banking groups, including downgrading the Company, to remove certain uplift from the U. S.  government support in their ratings.
At the same time, proposed and final U. S.  financial reform legislation and attendant rulemaking also have positive implications for credit ratings such as higher standards for capital and liquidity levels.
The net result on credit ratings and the timing of any change in rating agency views on changes in government support and other financial reform is currently uncertain.
The following table sets forth the Company’s tangible Morgan Stanley shareholders’ equity and tangible common equity at December 31, 2013 and December 31, 2012 and average balances during 2013:
## Table 4 ##
(1) The Company calculates its average balances based upon month-end balances.
(2) The goodwill and net intangible assets deduction exclude mortgage servicing rights (net of disallowable mortgage servicing rights) of $7 million and $6 million at December 31, 2013 and December 31, 2012, respectively, and include only the Company’s share of the Wealth Management JV’s goodwill and intangible assets at each respective period (100% at December 31, 2013 and 65% at December 31, 2012) (see Note 3 to the consolidated financial statements in Item 8).
The increase in goodwill and net intangible assets at December 31, 2013 from December 31, 2012 is primarily due to the purchase of the remaining 35% interest in the Wealth Management JV.
(3) Tangible common equity, a non-GAAP financial measure, equals common equity less goodwill and net intangible assets as defined above.
The Company views tangible common equity as a useful measure to investors because it is a commonly utilized metric and reflects the common equity deployed in the Company’s businesses.
Capital Covenants.
In October 2006 and April 2007, the Company executed replacement capital covenants in connection with offerings by Morgan Stanley Capital Trust VII and Morgan Stanley Capital Trust VIII (the “Capital Securities”), which become effective after the scheduled redemption date in 2046.
Under the terms of the replacement capital covenants, the Company has agreed, for the benefit of certain specified holders of debt, to limitations on its ability to redeem or repurchase any of the Capital Securities for specified periods of time.
For a complete description of the Capital Securities and the terms of the replacement capital covenants, see the Company’s Current Reports on Form 8-K dated October 12, 2006 and April 26, 2007.
Regulatory Requirements.
Capital.
The Company is a financial holding company under the Bank Holding Company Act of 1956, as amended, and is subject to the regulation and oversight of the Federal Reserve.
The Federal Reserve establishes capital requirements for the Company, including well-capitalized standards, and evaluates the Company’s compliance with such capital requirements.
The Office of the Comptroller of the Currency (“OCC”) establishes similar capital requirements and standards for the Subsidiary Banks.
As of December 31, 2013, the Company calculated its capital ratios and RWAs in accordance with the existing capital adequacy standards for financial holding companies adopted by the Federal Reserve.
These existing capital standards are based upon a framework described in the “International Convergence of Capital Measurement and Capital Standards,” July 1988, as amended, also referred to as Basel I.
In December 2007, the U. S.  banking regulators published final regulations incorporating the Basel II Accord, which requires internationally active U. S.  banking organizations, as well as certain of their U. S.  bank subsidiaries, to implement
(4) CDS adjustment represents credit protection purchased from European Peripherals’ banks on European Peripherals’ sovereign and financial institution risk.
Based on the CDS notional amount assuming zero recovery adjusted for any fair value receivable or payable.
(5) Represents CDS hedges (purchased and sold) on net counterparty exposure and funded lending executed by trading desks responsible for hedging counterparty and lending credit risk exposures for the Company.
Based on the CDS notional amount assuming zero recovery adjusted for any fair value receivable or payable.
(6) In addition, at December 31, 2013, the Company had European Peripherals exposure for overnight deposits with banks of approximately $111 million.
Industry Exposure—OTC Derivative Products.
The Company also monitors its credit exposure to individual industries for current exposure arising from the Company’s OTC derivative contracts.
The following table shows the Company’s OTC derivative products by industry at December 31, 2013:
## Table 5 ##
(1) For further information on derivative instruments and hedging activities, see Note 12 to the consolidated financial statements in Item 8.
(2) Includes mutual funds, pension funds, private equity and real estate funds, exchanges and clearinghouses and diversified financial services.
Operational Risk.
Operational risk refers to the risk of loss, or of damage to the Company’s reputation, resulting from inadequate or failed processes, people and systems or from external events (e. g. , fraud, legal and compliance risks or damage to physical assets).
The Company may incur operational risk across the full scope of its business activities, including revenue-generating activities (e. g. , sales and trading) and control groups (e. g. , information technology and trade processing).
Legal, regulatory and compliance risk is included in the scope of operational risk and is discussed below under “Legal, Regulatory and Compliance Risk.
” The Company has established an operational risk framework to identify, measure, monitor and control risk across the Company.
Effective operational risk management is essential to reducing the impact of operational risk incidents and mitigating legal, regulatory and reputational risks.
The framework is continually evolving to account for changes in the Company and respond to the changing regulatory and business environment.
The Company has implemented operational risk data and assessment systems to monitor and analyze internal and external operational risk events, business environment and internal control factors and to perform scenario analysis.
The collected data elements are incorporated in the operational risk capital model.
The model encompasses both quantitative and qualitative elements.
Internal loss data and scenario analysis results are direct inputs to the capital model, while external operational incidents, business environment internal control factors and metrics are indirect inputs to the model.
MORGAN STANLEY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) requirements.
Currently, this minimum “capital floor” is based on Basel I.
Beginning on January 1, 2015, the U. S.  Basel III final rule will replace the current Basel I-based “capital floor” with a standardized approach that, among other things, modifies the existing risk weights for certain types of asset classes.
The “capital floor” applies to the calculation of minimum risk-based capital requirements as well as the capital conservation buffer and, if deployed, the countercyclical capital buffer.
Accordingly, the methods for calculating the Company’s capital ratios will change as the U. S.  Basel III final rule’s revisions to the numerator and denominator are phased in and following the Company’s completion of the U. S.  Basel III advanced approach parallel run period.
These ongoing methodological changes may result in differences in the Company’s reported capital ratios from one reporting period to the next that are independent of changes to the Company’s capital base, asset composition, off-balance sheet exposures or risk profile.
On January 1, 2013, the U. S.  banking regulators’ rules to implement the Basel Committee’s market risk capital framework amendment, commonly referred to as “Basel 2.5”, became effective, which increased the capital requirements for securitizations and correlation trading within the Company’s trading book as well as incorporated add-ons for stressed Value-at-Risk (“VaR”) and incremental risk requirements (“market risk capital framework amendment”).
At December 31, 2013, the Company’s capital levels calculated under Basel I, inclusive of the market risk capital framework amendment, were in excess of well-capitalized levels with ratios of Tier 1 capital to RWAs of 15.7% and total capital to RWAs of 16.9% (6% and 10% being well-capitalized for regulatory purposes, respectively).
The Company’s ratio of Tier 1 common capital to RWAs was 12.8% (5% under stressed conditions is the current minimum under the Federal Reserve’s Comprehensive Capital Analysis and Review (“CCAR”) framework).
Financial holding companies, including the Company, are subject to a Tier 1 leverage ratio defined by the Federal Reserve.
Consistent with the Federal Reserve’s definition, the Company calculated its Tier 1 leverage ratio as Tier 1 capital divided by adjusted average total assets (which reflects adjustments for disallowed goodwill, certain intangible assets, deferred tax assets and financial and non-financial equity investments).
The adjusted average total assets are derived using weekly balances for the period.
At December 31, 2013, the Company was in compliance with the Federal Reserve’s Tier 1 leverage requirement, with a Tier 1 leverage ratio of 7.6% (5% is the current well-capitalized standard for regulatory purposes).
The following table summarizes the capital measures for the Company:
## Table 6 ##
(1) Effective January 1, 2013, in accordance with the U. S.  banking regulators’ rules the Company implemented the Basel Committee’s market risk capital framework amendment, commonly referred to as “Basel 2.5”, which increased the capital requirement for securitizations and correlation trading within the Company’s trading book as well as incorporated add-ons for stressed VaR and incremental risk requirements.
Under the market risk capital framework amendment, total RWAs would have been approximately $424 billion at December 31, 2012.
At December 31, 2012, the capital ratios would have been approximately as follows: Total capital ratio 13.4%, Tier 1 common capital ratio 10.6% and Tier 1 capital ratio 12.8%.

<table><tr><td></td><td colspan="5">Fiscal year ended</td></tr><tr><td>(dollars in millions, except per share data)</td><td>December 29, 2002</td><td>December 28, 2003 -5</td><td>January 2, 2005 -6</td><td>January 1, 2006</td><td>December 31, 2006</td></tr><tr><td> Income statement data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Domestic Company-owned stores</td><td>$376.5</td><td>$375.4</td><td>$382.5</td><td>$401.0</td><td>$393.4</td></tr><tr><td>Domestic franchise</td><td>140.7</td><td>144.5</td><td>155.0</td><td>161.9</td><td>157.7</td></tr><tr><td>Domestic stores</td><td>517.2</td><td>519.9</td><td>537.5</td><td>562.9</td><td>551.1</td></tr><tr><td>Domestic distribution</td><td>676.0</td><td>717.1</td><td>792.0</td><td>819.1</td><td>762.8</td></tr><tr><td>International</td><td>81.8</td><td>96.4</td><td>117.0</td><td>129.6</td><td>123.4</td></tr><tr><td>Total revenues</td><td>1,275.0</td><td>1,333.3</td><td>1,446.5</td><td>1,511.6</td><td>1,437.3</td></tr><tr><td>Cost of sales</td><td>945.8</td><td>997.7</td><td>1,092.8</td><td>1,126.3</td><td>1,052.8</td></tr><tr><td>Operating margin</td><td>329.2</td><td>335.6</td><td>353.7</td><td>385.3</td><td>384.5</td></tr><tr><td>General and administrative expense</td><td>171.4</td><td>176.1</td><td>182.3</td><td>186.2</td><td>170.3</td></tr><tr><td>Income from operations</td><td>157.8</td><td>159.5</td><td>171.4</td><td>199.1</td><td>214.2</td></tr><tr><td>Interest income</td><td>0.5</td><td>0.4</td><td>0.6</td><td>0.8</td><td>1.2</td></tr><tr><td>Interest expense</td><td>-60.3</td><td>-74.7</td><td>-61.1</td><td>-48.8</td><td>-55.0</td></tr><tr><td>Other -1</td><td>-1.8</td><td>-22.7</td><td>-10.8</td><td>22.1</td><td>-</td></tr><tr><td>Income before provision for income taxes</td><td>96.2</td><td>62.4</td><td>100.1</td><td>173.3</td><td>160.4</td></tr><tr><td>Provision for income taxes</td><td>35.7</td><td>23.4</td><td>37.8</td><td>65.0</td><td>54.2</td></tr><tr><td>Net income</td><td>$60.5</td><td>$39.0</td><td>$62.3</td><td>$108.3</td><td>$106.2</td></tr><tr><td>Net income (loss) available to common stockholders (2)</td><td>$43.0</td><td>$-4.0</td><td>$62.3</td><td>$108.3</td><td>$106.2</td></tr><tr><td>Earnings (loss) per share:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Class L – basic</td><td>$10.97</td><td>$10.26</td><td>$5.57</td><td>N/A</td><td>N/A</td></tr><tr><td>Class L – diluted</td><td>10.96</td><td>10.25</td><td>5.57</td><td>N/A</td><td>N/A</td></tr><tr><td>Common stock – basic</td><td>$0.10</td><td>$-1.26</td><td>$0.85</td><td>$1.62</td><td>$1.68</td></tr><tr><td>Common stock – diluted</td><td>0.09</td><td>-1.26</td><td>0.81</td><td>1.58</td><td>1.65</td></tr><tr><td>Dividends declared per share -3</td><td>$-</td><td>$-</td><td>$0.065</td><td>$0.40</td><td>$0.48</td></tr><tr><td> Balance sheet data (at end of period):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash and cash equivalents</td><td>$25.5</td><td>$46.4</td><td>$40.4</td><td>$66.9</td><td>$38.2</td></tr><tr><td>Working capital</td><td>-10.2</td><td>-1.3</td><td>-0.2</td><td>4.0</td><td>11.1</td></tr><tr><td>Total assets</td><td>425.5</td><td>452.1</td><td>447.3</td><td>461.1</td><td>380.2</td></tr><tr><td>Total long-term debt, less current portion</td><td>599.2</td><td>941.2</td><td>755.4</td><td>702.4</td><td>740.1</td></tr><tr><td>Total debt</td><td>602.0</td><td>959.7</td><td>780.7</td><td>737.7</td><td>741.6</td></tr><tr><td>Cumulative preferred stock</td><td>98.0</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Total stockholders’ deficit</td><td>-473.4</td><td>-718.0</td><td>-549.9</td><td>-511.0</td><td>-564.9</td></tr></table>
<table><tr><td></td><td>2004</td><td>2005</td><td>2006</td></tr><tr><td>Domestic Company-owned stores</td><td>0.1%</td><td>7.1%</td><td>-2.2%</td></tr><tr><td>Domestic franchise stores</td><td>2.1%</td><td>4.6%</td><td>-4.4%</td></tr><tr><td>Domestic stores</td><td>1.8%</td><td>4.9%</td><td>-4.1%</td></tr><tr><td>International stores</td><td>5.9%</td><td>6.1%</td><td>4.0%</td></tr></table>
<table><tr><td></td><td>As of December</td></tr><tr><td><i>$ in millions</i></td><td>2014</td><td>2013</td></tr><tr><td>Common shareholders’ equity</td><td>$ 73,597</td><td>$ 71,267</td></tr><tr><td>Deductions for goodwill and identifiable intangible assets, net of deferred tax liabilities</td><td>-3,196</td><td>-3,468</td></tr><tr><td>Deductions for investments in nonconsolidated financial institutions</td><td>-4,928</td><td>-9,091</td></tr><tr><td>Other adjustments</td><td>-1,213</td><td>-489</td></tr><tr><td>CET1</td><td>$ 64,260</td><td>$ 58,219</td></tr><tr><td>Basel III Advanced RWAs</td><td>$577,869</td><td>$594,662</td></tr><tr><td>Basel III Advanced CET1 ratio</td><td>11.1%</td><td>9.8%</td></tr><tr><td>Standardized RWAs</td><td>$627,444</td><td>$635,092</td></tr><tr><td>Standardized CET1 ratio</td><td>10.2%</td><td>9.2%</td></tr></table>
<table><tr><td></td><td> Parent</td><td> Subsidiaries</td><td> Total</td></tr><tr><td></td><td colspan="3"> (dollars in millions)</td></tr><tr><td>Due in 2014</td><td>$22,495</td><td>$1,698</td><td>$24,193</td></tr><tr><td>Due in 2015</td><td>19,722</td><td>1,368</td><td>21,090</td></tr><tr><td>Due in 2016</td><td>21,142</td><td>2,002</td><td>23,144</td></tr><tr><td>Due in 2017</td><td>24,458</td><td>1,837</td><td>26,295</td></tr><tr><td>Due in 2018</td><td>13,575</td><td>1,733</td><td>15,308</td></tr><tr><td>Thereafter</td><td>41,913</td><td>1,632</td><td>43,545</td></tr><tr><td>Total</td><td>$143,305</td><td>$10,270</td><td>$153,575</td></tr></table>
<table><tr><td></td><td colspan="2">Balance at</td><td rowspan="2">Average Balance-1 2013</td></tr><tr><td></td><td>December 31, 2013</td><td>December 31, 2012</td></tr><tr><td></td><td colspan="3">(dollars in millions)</td></tr><tr><td>Common equity</td><td>$62,701</td><td>$60,601</td><td>$61,895</td></tr><tr><td>Preferred equity</td><td>3,220</td><td>1,508</td><td>1,839</td></tr><tr><td>Morgan Stanley shareholders’ equity</td><td>65,921</td><td>62,109</td><td>63,734</td></tr><tr><td>Junior subordinated debentures issued to capital trusts</td><td>4,849</td><td>4,827</td><td>4,826</td></tr><tr><td>Less: Goodwill and net intangible assets-2</td><td>-9,873</td><td>-7,587</td><td>-8,900</td></tr><tr><td>Tangible Morgan Stanley shareholders’ equity</td><td>$60,897</td><td>$59,349</td><td>$59,660</td></tr><tr><td>Common equity</td><td>$62,701</td><td>$60,601</td><td>$61,895</td></tr><tr><td>Less: Goodwill and net intangible assets-2</td><td>-9,873</td><td>-7,587</td><td>-8,900</td></tr><tr><td>Tangible common equity-3</td><td>$52,828</td><td>$53,014</td><td>$52,995</td></tr></table>
<table><tr><td>Industry</td><td>OTC Derivative Products-1  (dollars in millions)</td></tr><tr><td>Utilities</td><td>$3,142</td></tr><tr><td>Banks and securities firms</td><td>2,358</td></tr><tr><td>Funds, exchanges and other financial services-2</td><td>2,433</td></tr><tr><td>Special purpose vehicles</td><td>1,908</td></tr><tr><td>Regional governments</td><td>1,597</td></tr><tr><td>Healthcare</td><td>1,089</td></tr><tr><td>Industrials</td><td>914</td></tr><tr><td>Sovereign governments</td><td>816</td></tr><tr><td>Not-for-profit organizations</td><td>672</td></tr><tr><td>Insurance</td><td>538</td></tr><tr><td>Real Estate</td><td>503</td></tr><tr><td>Consumer staples</td><td>487</td></tr><tr><td>Other</td><td>1,157</td></tr><tr><td>Total</td><td>$17,614</td></tr></table>
<table><tr><td></td><td colspan="2">December 31, 2013</td><td colspan="2"> December 31, 2012</td></tr><tr><td></td><td> Balance</td><td>Ratio</td><td> Balance</td><td> Ratio</td></tr><tr><td></td><td colspan="4"> (dollars in millions)</td></tr><tr><td>Tier 1 common capital-1</td><td>$49,917</td><td>12.8%</td><td>$44,794</td><td>14.6%</td></tr><tr><td>Tier 1 capital-1</td><td>61,007</td><td>15.7%</td><td>54,360</td><td>17.7%</td></tr><tr><td>Total capital-1</td><td>66,000</td><td>16.9%</td><td>56,626</td><td>18.5%</td></tr><tr><td>RWAs-1</td><td>389,675</td><td>—</td><td>306,746</td><td>—</td></tr><tr><td>Adjusted average total assets</td><td>805,838</td><td>—</td><td>769,495</td><td>—</td></tr><tr><td>Tier 1 leverage</td><td>—</td><td>7.6%</td><td>—</td><td>7.1%</td></tr></table>

Question: What will RWAs-1 reach in 2014 if it continues to grow at its current rate? (in million)