Morgan Stanley 2010 Annual Report Download - page 162

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Beginning
Balance at
December 31,
2009
Total Realized
and Unrealized
Gains (Losses)(1)
Purchases,
Sales, Other
Settlements
and
Issuances, net
Net Transfers
In and/or
(Out) of
Level 3
Ending
Balance at
December 31,
2010
Unrealized
Gains (Losses)
for Level 3
Assets/
Liabilities
Outstanding at
December 31,
2010(2)
(dollars in millions)
Equity contracts ........ (689) (131) (146) 204 (762) (143)
Commodity contracts .... 7 121 60 — 188 268
Other ................. (437) (266) (220) 10 (913) (284)
Total net derivative
and other
contracts(3) ...... 8,346 (1,294) (323) (1,152) 5,577 50
Investments:
Private equity funds ..... 1,296 496 202 (8) 1,986 462
Real estate funds ........ 833 251 89 3 1,176 399
Hedge funds ........... 1,708 (161) (327) (319) 901 (160)
Principal investments .... 3,195 470 229 (763) 3,131 412
Other ................. 581 109 (129) (1) 560 49
Total investments . . . 7,613 1,165 64 (1,088) 7,754 1,162
Securities received as collateral .... 23 — (22) — 1 —
Intangible assets ................ 137 43 (23) — 157 23
Liabilities
Deposits ...................... $ 24 $ — $ — $ (8) $ 16 $—
Commercial paper and other short-
term borrowings .............. — — 2 — 2 —
Financial instruments sold, not yet
purchased:
Corporate and other debt:
Asset-backed securities . . . 4 — (4) — — —
Corporate bonds ........ 29 (15) 13 (13) 44 (9)
Collateralized debt
obligations .......... 3 — (3) — — —
Unfunded lending
commitments ........ 252 (4) 7 — 263 (2)
Other debt ............. 431 65 (161) (11) 194 62
Total corporate and
other debt ....... 719 46 (148) (24) 501 51
Corporate equities ........... 4 17 54 (26) 15 9
Obligation to return securities
received as collateral .......... 23 — (22) — 1 —
Securities sold under agreements to
repurchase ................... — (1) 350 — 351 (1)
Other secured financings ......... 1,532 (44) (612) 52 1,016 (44)
Long-term borrowings ........... 6,865 66 (5,175) (308) 1,316 (84)
(1) Total realized and unrealized gains (losses) are primarily included in Principal transactions—Trading in the consolidated statements of
income except for $1,165 million related to Financial instruments owned—Investments, which is included in Principal transactions—
Investments.
(2) Amounts represent unrealized gains (losses) for 2010 related to assets and liabilities still outstanding at December 31, 2010.
(3) Net derivative and other contracts represent Financial instruments owned—Derivative and other contracts, net of Financial instruments
sold, not yet purchased—Derivative and other contracts. For further information on derivative instruments and hedging activities, see
Note 12.
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