Morgan Stanley 2009 Annual Report Download - page 230

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Parent Company Only
Condensed Statements of Cash Flows
(dollars in millions)
2009
Fiscal
2008
Fiscal
2007
One Month
Ended
December 31,
2008
Cash flows from operating activities:
Net income (loss) .......................................... $ 1,346 $ 1,707 $ 3,209 $ (1,288)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Compensation payable in common stock and stock options ..... 1,265 1,878 1,941 150
Undistributed loss of subsidiaries ......................... 307 6,844 3,500 1,305
Gains on business dispositions ............................ (606) (1,464) — —
Change in assets and liabilities:
Financial instruments owned, net of financial instruments sold, not yet
purchased .............................................. 5,505 (2,568) 2,796 467
Other assets .............................................. (5,036) (1,584) 6,346 (1,015)
Other liabilities and accrued expenses .......................... (10,134) 25,377 (29,080) (4,097)
Net cash (used in) provided by operating activities ........ (7,353) 30,190 (11,288) (4,478)
Cash flows from investing activities:
Advances to and investments in subsidiaries ..................... 13,375 (25,651) (12,376) (5,013)
Securities purchased under agreement to resell with affiliate ........ (29,255) 48,137 (13,784) (12,794)
Business dispositions ....................................... 565 1,560 — —
Net cash (used in) provided by investing activities ........ (15,315) 24,046 (26,160) (17,807)
Cash flows from financing activities:
Net (payments for) proceeds from short-term borrowings .......... (5,743) (14,224) 6,360 504
MSCI Inc. initial public offering .............................. — — 265 —
Excess tax benefits associated with stock-based awards ............ 102 47 281 —
Net proceeds from:
Morgan Stanley public offerings of common stock ................ 6,212 — — —
Issuance of preferred stock and common stock warrant ............ — 18,997 — —
Issuance of common stock ................................... 43 397 927 4
Issuance of long-term borrowings ............................. 30,112 35,420 60,651 9,846
Payments for:
Series D Preferred Stock and Warrant .......................... (10,950) — — —
Repurchases of common stock through capital management share
repurchase program ...................................... — (711) (3,753) —
Repurchases of common stock for employee tax withholding ....... (50) (1,117) (438) (3)
Repayments of long-term borrowings .......................... (24,315) (44,412) (22,523) (341)
Cash dividends ............................................ (1,732) (1,227) (1,219) —
Net cash (used for) provided by financing activities ....... (6,321) (6,830) 40,551 10,010
Effect of exchange rate changes on cash and cash equivalents ........... 549 (2,375) 242 2,259
Net (decrease) increase in cash and cash equivalents .................. (28,440) 45,031 3,345 (10,016)
Cash and cash equivalents, at beginning of period .................... 45,239 10,224 6,879 55,255
Cash and cash equivalents, at end of period ......................... $16,799 $ 55,255 $ 10,224 $ 45,239
Supplemental Disclosure of Cash Flow Information
Cash payments for interest were $6,758 million, $12,098 million, $9,595 million and $1,059 million for 2009,
fiscal 2008, fiscal 2007 and the one month ended December 31, 2008, respectively.
Cash (refund) payments for income taxes were $325 million, $(688) million, $847 million and $2 million for
2009, fiscal 2008, fiscal 2007 and the one month ended December 31, 2008, respectively.
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