Morgan Stanley 2010 Annual Report Download - page 150

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Pro forma condensed combined financial information (unaudited).
The following unaudited pro forma condensed combined financial information presents the results of operations
of the Company as they may have appeared if the closing of MSSB and Citi Managed Futures had been
completed on January 1, 2009, December 1, 2007 and December 1, 2008 (dollars in millions, except share data).
2009
Fiscal
2008
One Month
Ended
December 31,
2008
(unaudited)
Net revenues .................................................... $26,240 $30,439 $ (275)
Total non-interest expenses ........................................ 24,901 28,407 1,592
Income (loss) from continuing operations before income taxes ............ 1,339 2,032 (1,867)
Provision for (benefit from) income taxes ............................. (272) 167 (700)
Income (loss) from continuing operations ............................. 1,611 1,865 (1,167)
Discontinued operations:
Gain (loss) from discontinued operations .......................... 33 1,004 (14)
Provision for (benefit from) income taxes ......................... (49) 464 2
Net gain (loss) from discontinued operations ................... 82 540 (16)
Net income (loss) ................................................ 1,693 2,405 (1,183)
Net income applicable to noncontrolling interests ................... 234 452 65
Net income (loss) applicable to Morgan Stanley ........................ $ 1,459 $ 1,953 $(1,248)
Earnings (loss) applicable to Morgan Stanley common shareholders ........ $ (794) $ 1,727 $(1,584)
Earnings (loss) per basic common share:
Income (loss) from continuing operations ......................... $ (0.73) $ 1.23 $ (1.56)
Net gain (loss) from discontinued operations ....................... 0.06 0.45 (0.02)
Earnings (loss) per basic common share ...................... $ (0.67) $ 1.68 $ (1.58)
Earnings (loss) per diluted common share:
Income (loss) from continuing operations ......................... $ (0.73) $ 1.17 $ (1.56)
Net gain (loss) from discontinued operations ....................... 0.06 0.44 (0.02)
Earnings (loss) per diluted common share ..................... $ (0.67) $ 1.61 $ (1.58)
The unaudited pro forma condensed combined financial information is presented for illustrative purposes only
and does not indicate the actual financial results of the Company had the closing of Smith Barney and Citi
Managed Futures been completed on January 1, 2009, December 1, 2007 and December 1, 2008, nor is it
indicative of the results of operations in future periods. Included in the unaudited pro forma combined financial
information for 2009, fiscal 2008, and the one month ended December 31, 2008 were pro forma adjustments to
reflect the results of operations of Smith Barney and Citi Managed Futures as well as the impact of amortizing
certain purchase accounting adjustments such as amortizable intangible assets. The pro forma condensed
financial information does not indicate the impact of possible business model changes nor does it consider any
potential impacts of market conditions, expense efficiencies or other factors.
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