Morgan Stanley 2010 Annual Report Download - page 130

MORGAN STANLEY
Consolidated Statements of Cash Flows
(dollars in millions)
2010 2009
Fiscal
2008
One Month
Ended
December 31,
2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) .......................................................................... $ 5,702 $ 1,406 $ 1,778 $ (1,285)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Deferred income taxes .............................................................. (129) (932) (1,224) (781)
Compensation payable in common stock and options ...................................... 1,260 1,265 1,838 77
Depreciation and amortization ........................................................ 1,419 1,224 794 104
Gain on business dispositions ......................................................... (570) (606) (2,232) —
Gain on sale of stake in China International Capital Corporation Limited ...................... (668) — — —
Gains on curtailments of postretirement plans ............................................ (54) — — —
Gains on sale of securities available for sale ............................................. (102) — — —
Gain on repurchase of long-term debt .................................................. — (491) (2,252) (73)
Insurance reimbursement ............................................................ (76) — — —
Loss on assets held for sale .......................................................... 1,190 — — —
Impairment charges and other-than-temporary impairment charges ........................... 201 823 1,238 —
Changes in assets and liabilities:
Cash deposited with clearing organizations or segregated under federal and other regulations or
requirements .................................................................... 4,532 211 5,001 1,407
Financial instruments owned, net of financial instruments sold, not yet purchased ............... 19,169 (26,130) 78,486 2,412
Securities borrowed ................................................................ 28,771 (79,449) 154,209 (2,267)
Securities loaned ................................................................... 2,848 11,666 (95,602) (241)
Receivables, loans and other assets .................................................... (9,568) (2,445) 54,531 1,479
Payables and other liabilities ......................................................... 761 818 (114,531) 11,481
Federal funds sold and securities purchased under agreements to resell ........................ (5,045) (20,499) 51,822 (16,290)
Securities sold under agreements to repurchase ........................................... (9,334) 67,188 (60,439) (10,188)
Net cash provided by (used for) operating activities ............................................... 40,307 (45,951) 73,417 (14,165)
CASH FLOWS FROM INVESTING ACTIVITIES
Net proceeds from (payments for):
Premises, equipment and software costs ................................................ (1,201) (2,877) (1,400) (107)
Business acquisitions, net of cash acquired .............................................. (1,042) (2,160) (174) —
Business dispositions, net of cash disposed .............................................. 840 565 743 —
MUFG Transaction ................................................................. 247 — — —
Sale of stake in China International Capital Corporation Limited ............................. 989 — — —
Purchases of securities available for sale ................................................ (29,989) — — —
Sales and redemptions of securities available for sale ...................................... 999 — — —
Net cash used for investing activities ........................................................... (29,157) (4,472) (831) (107)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from (payments for):
Commercial paper and other short-term borrowings ....................................... 878 (7,724) (24,012) (381)
Dividends related to noncontrolling interests ............................................. (332) — — —
Derivatives financing activities ....................................................... (85) (85) 962 (3,354)
Other secured financings ............................................................ (751) (4,437) (15,246) 12
Deposits ......................................................................... 1,597 10,860 11,576 8,600
Net proceeds from:
Excess tax benefits associated with stock-based awards .................................... 5 102 47 —
Noncontrolling interests ............................................................. — — 1,560 —
Issuance of preferred stock and common stock warrant .................................... — — 18,997 —
Public offerings and other issuances of common stock ..................................... 5,581 6,255 397 4
Issuance of long-term borrowings ..................................................... 32,523 43,960 42,331 13,590
Issuance of junior subordinated debentures related to China Investment Corporation ............. — — 5,579 —
Payments for:
Long-term borrowings .............................................................. (28,201) (33,175) (56,120) (5,694)
Series D Preferred Stock and Warrant .................................................. — (10,950) — —
Redemption of junior subordinated debentures related to China Investment Corporation .......... (5,579) — — —
Repurchases of common stock through capital management share repurchase program ........... — — (711) —
Repurchases of common stock for employee tax withholding ................................ (317) (50) (1,117) (3)
Cash dividends .................................................................... (1,156) (1,732) (1,227) —
Net cash provided by (used for) financing activities ............................................... 4,163 3,024 (16,984) 12,774
Effect of exchange rate changes on cash and cash equivalents ....................................... 14 720 (2,546) 1,514
Effect of cash and cash equivalents related to variable interest entities ................................ 297 — — —
Net increase (decrease) in cash and cash equivalents .............................................. 15,624 (46,679) 53,056 16
Cash and cash equivalents, at beginning of period ................................................ 31,991 78,670 25,598 78,654
Cash and cash equivalents, at end of period ...................................................... $47,615 $ 31,991 $ 78,654 $ 78,670
Cash and cash equivalents include:
Cash and due from banks ................................................................ $ 7,341 $ 6,988 $ 11,276 $ 13,354
Interest bearing deposits with banks ....................................................... 40,274 25,003 67,378 65,316
Cash and cash equivalents, at end of period ...................................................... $47,615 $ 31,991 $ 78,654 $ 78,670
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest were $5,891 million, $7,605 million, $35,587 million and $1,111 million for 2010, 2009, fiscal 2008 and the one month ended
December 31, 2008, respectively.
Cash payments for income taxes were $1,091 million, $1,028 million, $1,406 million and $113 million for 2010, 2009, fiscal 2008 and the one month ended
December 31, 2008, respectively.
See Notes to Consolidated Financial Statements.
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