Morgan Stanley 2010 Annual Report Download - page 173

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In addition to the losses included in the table above, the Company incurred a loss of approximately $1.2 billion in
connection with the planned disposition of Revel for 2010, which was included in discontinued operations.
The loss primarily related to premises and equipment and was included in discontinued operations (see Note 1).
The fair value of Revel, net of estimated costs to sell, included in Premises, equipment and software costs was
approximately $28 million at December 31, 2010 and was classified in Level 3. Fair value was determined using
discounted cash flow models. See Note 28 for further information on Revel.
There were no liabilities measured at fair value on a non-recurring basis during 2010.
2009.
Fair Value Measurements Using:
Carrying Value
at December 31,
2009
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Losses for
2009(1)
(dollars in millions)
Loans(2) ......................... $739 $— $— $739 $(269)
Other investments(3) ............... 66 — — 66 (39)
Premises, equipment and software
costs(3) ....................... 8 — — 8 (5)
Intangible assets(3) ................ 3 — — 3 (4)
Total ............................ $816 $— $— $816 $(317)
(1) Losses are recorded within Other expenses in the consolidated statements of income except for fair value adjustments related to Loans
and losses related to Other investments, which are included in Other revenues.
(2) Losses for loans held for investment and held for sale were calculated based upon the fair value of the underlying collateral. The fair
value of the collateral was determined using internal expected recovery models.
(3) Losses recorded were determined primarily using discounted cash flow models.
In addition to the impairment losses included in the table above, impairment losses of approximately $482
million (of which $45 million related to Other investments, $12 million related to Intangible assets, and $425
million related to Other assets) were included in discontinued operations primarily related to Crescent (see
Note 1). Impairment losses of approximately $24 million were also included in discontinued operations related to
premises and equipment of an entity sold by the Company in 2009.
There were no liabilities measured at fair value on a non-recurring basis during 2009.
Fiscal 2008.
Fair Value Measurements Using:
Carrying Value
at November 30,
2008
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Losses for
Fiscal 2008(1)
(dollars in millions)
Loans(2) ...................... $ 634 $— $ 70 $ 564 $(121)
Other investments(3) ............ 123 — — 123 (62)
Premises, equipment and software
costs(4) ..................... 91 — — 91 (15)
Goodwill(5) ................... — — — — (673)
Intangible assets(6) ............. 198 — — 198 (46)
Other assets(7) ................. 54 — — 54 (30)
Total ......................... $1,100 $— $ 70 $1,030 $(947)
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