Morgan Stanley 2010 Annual Report Download - page 175

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
5. Securities Available for Sale.
The following table presents information about the Company’s AFS securities:
At December 31, 2010
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Other-than-
Temporary
Impairment
Fair
Value
(dollars in millions)
Debt securities available for sale:
U.S. government and agency securities ........ $29,586 $215 $152 $— $29,649
The table below presents the fair value of investments in debt securities available for sale that have been in an
unrealized loss position:
Less than 12 Months 12 Months or Longer Total
At December 31, 2010 Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses Fair Value
Gross
Unrealized
Losses
(dollars in millions)
Debt securities available for sale:
U.S. government and agency
securities ..................... $9,696 $152 $— $— $9,696 $152
Gross unrealized losses are recorded in Accumulated other comprehensive income.
The Company does not intend to sell these securities or expect to be required to sell these securities prior to
recovery of the amortized cost basis. In addition, the Company does not expect these securities to experience a
credit loss given the explicit and implicit guarantee provided by the U.S. government. The Company believes that
the debt securities with an unrealized loss in Accumulated other comprehensive income were not other-than-
temporarily impaired at December 31, 2010.
The following table presents the amortized cost and fair value of debt securities available for sale by contractual
maturity dates at December 31, 2010.
Amortized Cost Fair Value
Annualized
Average Yield
(dollars in millions)
U.S. government and agency securities:
Due within 1 year ........................... $ 6,913 $ 6,929 0.60%
After 1 year but through 5 years ................ 13,700 13,862 1.40%
After 5 years ............................... 8,973 8,858 1.64%
Total .................................. $29,586 $29,649 1.28%
The following table presents information pertaining to sales of equity securities available for sale during 2010
(dollars in millions):
Gross realized gains(1)(2) ...................................................... $102
Gross realized losses(2) ........................................................ $—
Proceeds of sales of equity securities available for sale(1) ............................. $670
(1) Amounts relate to the Company’s sale of Invesco equity securities in the fourth quarter of 2010. See Note 1 for additional information.
(2) Amounts are recognized in Other revenues in the consolidated statements of income.
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