Morgan Stanley 2009 Annual Report Download - page 147

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MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for 2009
Beginning
Balance at
December 31,
2008
Total
Realized
and
Unrealized
Gains
(Losses)(1)
Purchases,
Sales, Other
Settlements
and Issuances,
net
Net
Transfers
In and/or
(Out) of
Level 3
Ending
Balance at
December 31,
2009
Unrealized
Gains
(Losses) for
Level 3 Assets/
Liabilities
Outstanding at
December 31,
2009(2)
(dollars in millions)
Assets
Financial instruments owned:
U.S. agency securities ............. $ 127 $ (2) $ (56) $ (33) $ 36 $ —
Other sovereign government
obligations .................... 1 (3) 1 4 3 —
Corporate and other debt:
State and municipal securities . . . 2,065 2 (413) (941) 713 (26)
Residential mortgage-backed
securities ................. 1,197 (79) (125) (175) 818 (52)
Commercial mortgage-backed
securities ................. 3,017 (654) (314) (476) 1,573 (662)
Asset-backed securities ........ 1,013 91 (468) (45) 591 (12)
Corporate bonds ............. 2,753 (184) (917) (614) 1,038 33
Collateralized debt
obligations ................ 946 630 30 (53) 1,553 418
Loans and lending
commitments .............. 20,180 (1,225) (5,898) (551) 12,506 (763)
Other debt .................. 3,747 985 (2,386) (684) 1,662 775
Total corporate and other
debt ................. 34,918 (434) (10,491) (3,539) 20,454 (289)
Corporate equities ................ 976 121 (691) 130 536 (227)
Net derivative and other
contracts(3) ................... 23,382 (4,316) (956) (9,764) 8,346 (3,037)
Investments ..................... 9,698 (1,418) 82 (749) 7,613 (1,317)
Securities received as collateral ......... 30 — (7) — 23 —
Intangible assets ..................... 184 (44) (3) — 137 (44)
Liabilities
Deposits ............................ $ — $ (2) $ — $ 22 $ 24 $ (2)
Other sovereign government obligations . . — — (10) 10 — —
Financial instruments sold, not yet
purchased:
Corporate and other debt:
Commercial mortgage-backed
securities ................. 13 — (13) — — —
Asset-backed securities ........ 4 — — — 4 —
Corporate bonds ............. 395 (22) (291) (97) 29 (30)
Collateralized debt
obligations ................ — — 3 — 3 —
Unfunded lending
commitments .............. 24 (12) 216 — 252 (12)
Other debt .................. 3,372 (13) (2,291) (663) 431 (196)
Total corporate and other
debt ................. 3,808 (47) (2,376) (760) 719 (238)
Corporate equities ................ 27 (6) (90) 61 4 (1)
Obligation to return securities received as
collateral ......................... 30 — (7) — 23 —
Other secured financings ............... 6,148 396 (3,757) (463) 1,532 (50)
Long-term borrowings ................ 5,473 (450) 267 675 6,865 (450)
(1) Total realized and unrealized gains (losses) are primarily included in Principal transactions—trading in the consolidated statements of
income except for $(1,418) million related to Financial instruments owned—investments, which is included in Principal transactions—
investments.
142