Morgan Stanley 2009 Annual Report Download - page 233

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
26. Quarterly Results (unaudited).
2009 Quarter 2008 Fiscal Quarter
First Second Third Fourth First Second(1) Third Fourth(2)
One Month
Ended
December 31,
2008
(dollars in millions, except per share data)
Total non-interest revenues ........... $2,699 $ 5,638 $7,801 $6,230 $6,888 $5,326 $5,734 $ 796 $(1,141)
Net interest ........................ 197 (443) 624 612 1,110 107 1,224 926 173
Net revenues ...................... 2,896 5,195 8,425 6,842 7,998 5,433 6,958 1,722 (968)
Total non-interest expenses ........... 3,530 5,784 6,983 6,204 5,869 4,815 5,737 4,553 1,059
(Loss) income from continuing
operations before income taxes ...... (634) (589) 1,442 638 2,129 618 1,221 (2,831) (2,027)
(Benefit from) provision for income
taxes ........................... (597) (321) 510 72 624 102 233 (980) (732)
(Loss) income from continuing
operations ....................... (37) (268) 932 566 1,505 516 988 (1,851) (1,295)
Discontinued operations(3):
(Loss) net gain from discontinued
operations ..................... (252) 485 (226) 153 104 862 755 (601) 18
(Benefit from) provision for income
taxes ......................... (99) 184 (87) (51) 41 337 296 (174) 8
Net (loss) gain on discontinued
operations ....................... (153) 301 (139) 204 63 525 459 (427) 10
Net (loss) gain ..................... (190) 33 793 770 1,568 1,041 1,447 (2,278) (1,285)
Net (loss) gain applicable to
non-controlling interests ........... (13) (116) 36 153 17 16 20 18 3
Net (loss) gain applicable to Morgan
Stanley ......................... $ (177) $ 149 $ 757 $ 617 $1,551 $1,025 $1,427 $(2,296) $(1,288)
(Loss) earnings applicable to Morgan
Stanley common shareholders(4) ..... $ (578) $(1,256) $ 498 $ 376 $1,440 $ 947 $1,331 $(2,380) $(1,624)
(Loss) earnings per basic common
share(5):
(Loss) income from continuing
operations ..................... $(0.41) $ (1.36) $ 0.48 $ 0.14 $ 1.36 $ 0.44 $ 0.87 $ (1.92) $ (1.63)
(Loss) income gain on discontinued
operations ..................... (0.16) 0.26 (0.09) 0.15 0.05 0.47 0.41 (0.43) 0.01
(Loss) earnings per basic common
share ....................... $(0.57) $ (1.10) $ 0.39 $ 0.29 $ 1.41 $ 0.91 $ 1.28 $ (2.35) $ (1.62)
(Loss) earnings per diluted common
share(5):
(Loss) income from continuing
operations ..................... $(0.41) $ (1.36) $ 0.48 $ 0.14 $ 1.35 $ 0.44 $ 0.87 $ (1.92) $ (1.63)
Net (loss) gain on discontinued
operations ..................... (0.16) 0.26 (0.10) 0.15 0.05 0.47 0.40 (0.43) 0.01
(Loss) earnings per diluted common
share ....................... $(0.57) $ (1.10) $ 0.38 $ 0.29 $ 1.40 $ 0.91 $ 1.27 $ (2.35) $ (1.62)
Dividends declared to common
shareholders ..................... $ 0.00 $ 0.07 $ 0.05 $ 0.05 $ 0.27 $ 0.27 $ 0.27 $ 0.27 $ 0.27
Book value ........................ $27.10 $ 27.21 $27.05 $27.26 $29.11 $30.11 $31.25 $ 30.24 $ 27.53
(1) Income from continuing operations includes correction of prior-period errors of $171 million ($120 million after-tax), $0.11 per diluted
share, due to the reversal of valuation adjustments related to interest rate derivatives, and a cumulative negative adjustment of $120
million ($84 million after-tax), $0.08 per diluted share, resulting from incorrect valuations of a London-based trader’s positions The
positive adjustment of $171 million related to fiscal 2006. The negative adjustment of $120 million increased income from continuing
operations on a pre-tax basis by $45 million and $75 million in fiscal 2007 and fiscal 2008, respectively. The Company does not believe
the adjustments, which were recorded in the period identified, were material to those consolidated financial statements after considering
both the quantitative amount and qualitative factors as related to the affected financial statements. These amounts are included in the
Institutional Securities business segment (see Note 21).
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