Morgan Stanley 2009 Annual Report Download - page 170

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Due to the continued deterioration in the financial markets, the Company performed an interim impairment test
of goodwill in the one month ended December 31, 2008, which did not result in impairment.
Goodwill.
Changes in the carrying amount of the Company’s goodwill, net of accumulated impairment losses for 2009,
fiscal 2008 and the one month ended December 31, 2008 were as follows:
Institutional
Securities(1)
Global
Wealth
Management
Group
Asset
Management Total
(dollars in millions)
Goodwill at November 30, 2007 ....................... $1,555 $ 297 $1,172 $3,024
Foreign currency translation adjustments and other ......... (108) 14 (3) (97)
Goodwill acquired during the year ...................... 31 — 2 33
Goodwill disposed of during the year(2) ................. (5) (39) — (44)
Impairment losses(3) ................................. (673) — — (673)
Goodwill at November 30, 2008 ....................... 800 272 1,171 2,243
Foreign currency translation adjustments and other ......... 13 — — 13
Goodwill at December 31, 2008 ....................... 813 272 1,171 2,256
Foreign currency translation adjustments and other ......... 13 — — 13
Goodwill acquired during the year(4) .................... — 5,346 — 5,346
Goodwill disposed of during the year(5) ................. (453) — — (453)
Goodwill at December 31, 2009(6)(7) .................. $ 373 $5,618 $1,171 $7,162
(1) The amount of goodwill related to MSCI was $437 million as of December 31, 2008 and November 30, 2008 and November 30, 2007.
(2) Global Wealth Management Group activity primarily represents goodwill disposed of in connection with the Company’s sale of Morgan
Stanley Wealth Management S.V., S.A.U. (see Note 17).
(3) Impairment losses are recorded within Other expenses in the consolidated statements of income.
(4) Global Wealth Management Group business segment activity primarily represents goodwill acquired in connection with Smith Barney
and Citi Managed Futures (see Note 3).
(5) Institutional Securities business segment activity primarily represents goodwill disposed of in connection with MSCI (see Note 23).
(6) The Asset Management business segment amount at December 31, 2009 included approximately $404 million related to Retail Asset
Management.
(7) The amount of the Company’s goodwill before accumulated impairments of $673 million at December 31, 2009 was $7,835 million.
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