Morgan Stanley 2009 Annual Report Download - page 89

Commitments and Contractual Obligations.
The Company’s commitments associated with outstanding letters of credit and other financial guarantees
obtained to satisfy collateral requirements, investment activities, corporate lending and financing arrangements,
mortgage lending and margin lending as of December 31, 2009 are summarized below by period of expiration.
Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily
reflect the actual future cash funding requirements:
Years to Maturity Total at
December 31,
2009
Less
than 1 1-3 3-5 Over 5
(dollars in millions)
Letters of credit and other financial guarantees obtained to
satisfy collateral requirements ....................... $ 1,043 $ 1 $ 1 $ 52 $ 1,097
Investment activities ................................. 1,013 883 199 83 2,178
Primary lending commitments—investment grade(1)(2) .... 10,146 26,378 4,033 154 40,711
Primary lending commitments—non-investment grade(1) . . . 344 4,193 2,515 124 7,176
Secondary lending commitments(1) .................... 18 107 121 97 343
Commitments for secured lending transactions ............ 683 1,415 114 — 2,212
Forward starting reverse repurchase agreements(3) ........ 30,104 101 — — 30,205
Commercial and residential mortgage-related
commitments(1) .................................. 1,485 — — — 1,485
Other commitments(4) ............................... 289 1 150 — 440
Total ......................................... $45,125 $33,079 $7,133 $510 $85,847
(1) These commitments are recorded at fair value within Financial instruments owned and Financial instruments sold, not yet purchased in
the consolidated statements of financial condition (see Note 4 to the consolidated financial statements).
(2) This amount includes commitments to asset-backed commercial paper conduits of $276 million as of December 31, 2009, of which
$268 million have maturities of less than one year and $8 million of which have maturities of one to three years.
(3) The Company enters into forward starting securities purchased under agreements to resell (agreements that have a trade date as of or
prior to December 31, 2009 and settle subsequent to period-end). These agreements primarily settle within three business days and as of
December 31, 2009, $26.6 billion of the $30.2 billion settled within three business days.
(4) Amount includes a $200 million lending facility to a real estate fund sponsored by the Company.
For further description of these commitments, see Note 11 to the consolidated financial statements and
“Quantitative and Qualitative Disclosures about Market Risk—Credit Risk” in Part II, Item 7A.
In the normal course of business, the Company enters into various contractual obligations that may require future
cash payments. Contractual obligations include long-term borrowings, contractual interest payments, operating
leases and purchase obligations. The Company’s future cash payments associated with its obligations as of
December 31, 2009 are summarized below:
At December 31, 2009 Payments Due in:
2010 2011-2012 2013-2014 Thereafter Total
(dollars in millions)
Long-term borrowings(1) ......................... $26,088 $64,849 $41,886 $60,551 $193,374
Contractual interest payments(2) ................... 6,344 10,071 7,279 18,015 41,709
Operating leases—office facilities(3) ................ 683 1,242 906 2,701 5,532
Operating leases—equipment(3) ................... 514 279 109 136 1,038
Purchase obligations(4) .......................... 408 271 119 98 896
Pension and postretirement plans—expected
contribution(5) ............................... 275 — — — 275
Total(6) ................................... $34,312 $76,712 $50,299 $81,501 $242,824
(1) See Note 9 to the consolidated financial statements.
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