Morgan Stanley 2009 Annual Report Download - page 217

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
contribution, transition contribution and make-up Company match granted to legacy Smith Barney employees are
included in the Company’s 401(k) expense. The Company entered into an agreement with the investment
manager for the SVP, a fund within the Company’s 401(k) plan, and certain other third parties on September 30,
2009 (see Note 11 for further information). Under the agreement, the Company contributed $20 million to the
SVP on October 15, 2009 and recorded the contribution in the Company’s 401(k) expense. The Company also
provides discretionary profit sharing to certain Non-U.S. employees. The pre-tax expense associated with the
401(k) plans and profit sharing for 2009, fiscal 2008, fiscal 2007 and the one month ended December 31, 2008
was $181 million, $106 million, $128 million and $8 million, respectively.
Defined Contribution Pension Plans. The Company maintains separate defined contribution pension plans that
cover substantially all employees of certain non-U.S. subsidiaries. Under such plans, benefits are determined
based on a fixed rate of base salary with certain vesting requirements. In 2009, fiscal 2008, fiscal 2007 and the
one month ended December 31, 2008, the Company’s expense related to these plans was $99 million, $128
million, $115 million and $9 million, respectively.
Other Postemployment Benefits. Postemployment benefits include, but are not limited to, salary continuation,
severance benefits, disability-related benefits, and continuation of health care and life insurance coverage
provided to former employees or inactive employees after employment but before retirement. The
postemployment benefit obligations were not material as of December 31, 2009 and December 31, 2008.
20. Income Taxes.
The provision for (benefit from) income taxes from continuing operations consisted of:
2009
Fiscal
2008
Fiscal
2007
One Month
Ended
December 31,
2008
(dollars in millions)
Current:
U.S. federal ........................................... $160 $ 445 $ 302 $ 42
U.S. state and local ..................................... 45 78 147 8
Non-U.S. ............................................. 338 1,181 2,428 8
543 1,704 2,877 58
Deferred:
U.S. federal ........................................... (463) (1,413) (2,078) (671)
U.S. state and local ..................................... (362) (109) (106) 30
Non-U.S. ............................................. (54) (203) (117) (149)
(879) (1,725) (2,301) (790)
(Benefit from) provision for income taxes from continuing
operations .............................................. $(336) $ (21) $ 576 $(732)
(Benefit from) provision for income taxes from discontinued
operations .............................................. $ (53) $ 501 $ 633 $ 8
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