Morgan Stanley 2009 Annual Report Download - page 122

MORGAN STANLEY
Consolidated Statements of Cash Flows
(dollars in millions)
2009
Fiscal Year
2008
Fiscal Year
2007
One Month
Ended
December 31,
2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) .................................................................. $ 1,406 $ 1,778 $ 3,249 $ (1,285)
Adjustments to reconcile net income to net cash (used for) provided by operating activities:
Deferred income taxes ...................................................... (932) (1,224) (1,669) (781)
Compensation payable in common stock and options .............................. 1,265 1,838 1,927 77
Depreciation and amortization ................................................ 1,224 794 475 104
Provision for consumer loan losses ............................................ — — 478 —
Gains on business dispositions ................................................ (606) (2,232) (168) —
Gain on repurchase of long-term debt .......................................... (491) (2,252) — (73)
Insurance settlement ........................................................ — — (38) —
Impairment charges and other-than-temporary impairment charges ................... 823 1,238 437 —
Changes in assets and liabilities:
Cash deposited with clearing organizations or segregated under federal and other
regulations or requirements ................................................ 211 5,001 (9,334) 1,407
Financial instruments owned, net of financial instruments sold, not yet purchased ....... (26,130) 78,486 (25,361) 2,412
Securities borrowed ........................................................ (79,449) 154,209 59,637 (2,267)
Securities loaned .......................................................... 11,666 (95,602) (39,834) (241)
Receivables and other assets ................................................. (2,445) 54,531 (3,973) 1,479
Payables and other liabilities ................................................. 818 (114,531) 71,092 11,481
Federal funds sold and securities purchased under agreements to resell ................ (20,499) 51,822 26,194 (16,290)
Securities sold under agreements to repurchase ................................... 67,188 (60,439) (105,361) (10,188)
Net cash (used for) provided by operating activities ....................................... (45,951) 73,417 (22,249) (14,165)
CASH FLOWS FROM INVESTING ACTIVITIES
Net (payments for) proceeds from:
Premises, equipment and software costs ........................................ (2,877) (1,400) (1,469) (107)
Business acquisitions, net of cash acquired ...................................... (2,160) (174) (1,169) —
Business dispositions, net of cash disposed ...................................... 565 743 476 —
Net principal disbursed on consumer loans ...................................... — — (4,776) —
Sales of consumer loans ..................................................... — — 5,301 —
Purchases of securities available for sale ........................................ — — (14,073) —
Sales of securities available for sale ............................................ — — 4,272 —
Net cash provided by (used for) investing activities ....................................... (4,472) (831) (11,438) (107)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (payments for) proceeds from:
Short-term borrowings ...................................................... (7,724) (24,012) 8,274 (381)
Derivatives financing activities ............................................... (85) 962 (859) (3,354)
Other secured financings .................................................... (4,437) (15,246) (24,231) 12
Deposits ................................................................. 10,860 11,576 23,099 8,600
Excess tax benefits associated with stock-based awards ............................ 102 47 281 —
Net proceeds from:
Non-controlling interests .................................................... — 1,560 265 —
Morgan Stanley public offerings of common stock ................................ 6,212 — — —
Issuance of preferred stock and common stock warrant ............................ — 18,997 — —
Issuance of common stock ................................................... 43 397 927 4
Issuance of long-term borrowings ............................................. 43,960 42,331 74,540 13,590
Issuance of junior subordinated debentures related to China Investment Corporation ..... — 5,579 — —
Payments for:
Long-term borrowings ...................................................... (33,175) (56,120) (33,120) (5,694)
Series D Preferred stock and warrant ........................................... (10,950) — — —
Redemption of capital units .................................................. — — (66) —
Repurchases of common stock through capital management share repurchase program . . . — (711) (3,753) —
Repurchases of common stock for employee tax withholding ....................... (50) (1,117) (438) (3)
Cash distribution in connection with the Discover Spin-off ......................... — — (5,615) —
Cash dividends ............................................................ (1,732) (1,227) (1,219) —
Net cash (used for) provided by financing activities ....................................... 3,024 (16,984) 38,085 12,774
Effect of exchange rate changes on cash and cash equivalents ............................... 720 (2,546) 594 1,514
Net (decrease) increase in cash and cash equivalents ...................................... (46,679) 53,056 4,992 16
Cash and cash equivalents, at beginning of period ........................................ 78,670 25,598 20,606 78,654
Cash and cash equivalents, at end of period ............................................. $31,991 $ 78,654 $ 25,598 $ 78,670
Cash and cash equivalents include:
Cash and due from banks ........................................................ $ 6,988 $ 11,276 $ 7,248 $ 13,354
Interest bearing deposits with banks ............................................... 25,003 67,378 18,350 65,316
Cash and cash equivalents, at end of period ............................................. $31,991 $ 78,654 $ 25,598 $ 78,670
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest were $7,605 million, $35,587 million, $59,955 million and $1,111 million for 2009, fiscal 2008, fiscal 2007 and the one month ended
December 31, 2008, respectively.
Cash payments for income taxes were $1,028 million, $1,406 million, $3,404 million and $113 million for 2009, fiscal 2008, fiscal 2007 and the one month ended
December 31, 2008, respectively.
See Notes to Consolidated Financial Statements.
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