Morgan Stanley 2009 Annual Report Download - page 171

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Net Intangible Assets.
Changes in the carrying amount of the Company’s intangible assets for 2009, fiscal 2008 and the one month
ended December 31, 2008 were as follows:
Institutional
Securities(1)
Global
Wealth
Management
Group
Asset
Management(2) Total
(dollars in millions)
Amortizable net intangible assets at November 30, 2007 .... $386 $ — $233 $ 619
Foreign currency translation adjustments and other ........... (21) — — (21)
Intangible assets acquired during the year(3) ................ 88 — 239 327
Net intangible assets disposed of during the year(4) .......... (54) — (11) (65)
Amortization expense(5) ................................ (44) — (37) (81)
Impairment losses(6)(7) ................................ (21) — (31) (52)
Amortizable net intangible assets at November 30, 2008 .... 334 — 393 727
Mortgage servicing rights (see Note 6) ..................... 220 — — 220
Net intangible assets at November 30, 2008 ............... $554 $ — $393 $ 947
Amortizable net intangible assets at November 30, 2008 .... $334 $ — $393 $ 727
Foreign currency translation adjustments and other ........... 3 — — 3
Amortization expense(5) ................................ (4) — (4) (8)
Amortizable net intangible assets at December 31, 2008 ..... $333 $ — $389 $ 722
Mortgage servicing rights (see Note 6) ..................... 184 — — 184
Net intangible assets at December 31, 2008 ............... $517 $ — $389 $ 906
Amortizable net intangible assets at December 31, 2008 ..... $333 $ — $389 $ 722
Foreign currency translation adjustments and other ........... — — (4) (4)
Intangible assets acquired during the year(8) ................ 2 4,475 1 4,478
Net intangible assets disposed of during the year(9) .......... (153) — (145) (298)
Amortization expense(5) ................................ (17) (183) (45) (245)
Impairment losses(10) .................................. (4) — (12) (16)
Amortizable net intangible assets at December 31, 2009 ..... 161 4,292 184 4,637
Mortgage servicing rights (see Note 6) ..................... 135 2 — 137
Indefinite-lived intangible asset(8) ........................ — 280 — 280
Net intangible assets at December 31, 2009 ............... $296 $4,574 $ 184 $5,054
(1) The amount of net intangible assets related to MSCI was $144 million, $146 million and $174 million at December 31,
2008, November 30, 2008 and November 30, 2007, respectively.
(2) The amount of intangible assets related to Crescent was $194 million and $197 million at December 31, 2008 and November 30, 2008,
respectively.
(3) Asset Management business segment activity primarily represents intangible assets related to the Company’s consolidation of Crescent.
(4) Institutional Securities business segment activity primarily represents intangible assets disposed of in connection with the Company’s
sale of a controlling interest in a previously consolidated commodities subsidiary.
(5) Amortization expense for MSCI in 2009, fiscal 2008 and the one month ended December 31, 2008 is included in discontinued
operations. Amortization expense for Retail Asset Management in 2009 and fiscal 2008 is included in discontinued operations. The
amortization expense for Crescent in 2009 and fiscal 2008 is included in discontinued operations.
(6) Impairment losses recorded within the Institutional Securities business segment primarily related to intellectual property
rights. Impairment losses recorded within the Asset Management business segment primarily related to management contract intangibles.
(7) Impairment losses are recorded within Other expenses in the consolidated statements of income.
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