Morgan Stanley 2009 Annual Report Download - page 203

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following securities were considered antidilutive and, therefore, were excluded from the computation of
diluted EPS:
Number of Antidilutive Securities Outstanding at End of Period: 2009 Fiscal 2008 Fiscal 2007
One Month
Ended
December 31,
2008
(shares in millions)
Restricted stock units ...................................... 62 50 59 72
Stock options ............................................ 82 81 19 99
Equity Units(1) .......................................... 116 116 — 116
CPP Warrant ............................................ — 65 — 65
Series B Preferred Stock ................................... 311 — — 311
Total ............................................... 571 312 78 663
(1) The Equity Units participate in substantially all of the earnings of the Company (i.e., any earnings above $0.27 per quarter) in basic EPS
(assuming a full distribution of earnings of the Company), and therefore, the Equity Units generally would not be included as incremental
shares in the diluted calculation.
15. Interest and Dividends and Interest Expense.
Details of Interest and dividends revenue and Interest expense were as follows (in millions):
2009
Fiscal
2008
One Month
Ended
December 31,
2008
Interest and dividends(1):
Financial instruments owned(2) .................................. $5,155 $ 9,961 $ 603
Receivables from other loans .................................... 229 784 15
Interest bearing deposits with banks(3) ............................ 241 — 19
Federal funds sold and securities purchased under agreements to resell
and securities borrowed(3) .................................... 859 — 380
Other(3) .................................................... 1,218 28,934 280
Total Interest and dividends revenue .................................. $7,702 $39,679 $1,297
Interest expense(1):
Commercial paper and other short-term borrowings .................. $ 51 $ 663 $ 33
Deposits .................................................... 782 740 53
Long-term debt ............................................... 4,898 7,793 579
Securities sold under agreements to repurchase and securities loaned(3) . . 1,374 — 355
Other(3) .................................................... (393) 27,116 104
Total Interest expense .............................................. $6,712 $36,312 $1,124
Net Interest and dividends revenue ................................... $ 990 $ 3,367 $ 173
(1) Interest income and expense and dividend income are recorded within the consolidated statements of income depending on the nature of
the instrument and related market conventions. When interest and dividends are included as a component of the instrument’s fair value,
interest and dividends are included within Principal transactions—trading revenues or Principal transactions—investment revenues.
Otherwise, they are included within Interest and dividends income or Interest expense.
(2) Interest expense on Financial instruments sold, not yet purchased is reported as a reduction to Interest and dividends revenues.
(3) The Company considers its principal trading, investment banking, commissions, and interest and dividend income, along with the
associated interest expense, as one integrated activity for each of the Company’s separate businesses, and therefore, prior to December
2008, was unable to further breakout Interest and dividends and Interest expense (see Note 1).
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