Morgan Stanley 2010 Annual Report Download - page 192

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Net Intangible Assets.
Changes in the carrying amount of the Company’s intangible assets for 2010 and 2009 were as follows:
Institutional
Securities(1)
Global
Wealth
Management
Group
Asset
Management(2) Total
(dollars in millions)
Amortizable net intangible assets at December 31, 2008 .... $333 $ — $389 $ 722
Mortgage servicing rights (see Note 7) .................... 184 — — 184
Net intangible assets at December 31, 2008 ............... $517 $ — $389 $ 906
Amortizable net intangible assets at December 31, 2008 .... $333 $ — $389 $ 722
Foreign currency translation adjustments and other .......... — — (4) (4)
Amortization expense(3) ............................... (17) (183) (45) (245)
Impairment losses(4) .................................. (4) — (12) (16)
Intangible assets acquired during the year(5) ................ 2 4,475 1 4,478
Intangible assets disposed of during the year(6) ............. (153) — (145) (298)
Amortizable net intangible assets at December 31, 2009 .... 161 4,292 184 4,637
Mortgage servicing rights (see Note 7) .................... 135 2 — 137
Indefinite-lived intangible assets (see Note 3) ............... — 280 — 280
Net intangible assets at December 31, 2009 ............... $296 $4,574 $ 184 $5,054
Amortizable net intangible assets at December 31, 2009 .... $161 $4,292 $ 184 $4,637
Foreign currency translation adjustments and other .......... 6 1 — 7
Amortization expense .................................. (23) (324) (9) (356)
Impairment losses(7) .................................. (4) (4) (166) (174)
Intangible assets acquired during the year(8) ................ 122 — — 122
Intangible assets disposed of during the year ................ — (2) (4) (6)
Amortizable net intangible assets at December 31, 2010 .... 262 3,963 5 4,230
Mortgage servicing rights (see Note 7) .................... 151 6 — 157
Indefinite-lived intangible assets (see Note 3) ............... — 280 — 280
Net intangible assets at December 31, 2010 ............... $413 $4,249 $ 5 $4,667
(1) The amount of net intangible assets related to MSCI was $144 million at December 31, 2008.
(2) The amount of intangible assets related to Crescent was $194 million at December 31, 2008.
(3) Amortization expense for MSCI, Retail Asset Management and Crescent in 2009 is included in discontinued operations.
(4) Impairment losses recorded within the Asset Management business segment related to the disposition of Crescent and are included in
discontinued operations.
(5) Global Wealth Management Group business segment activity primarily represents intangible assets acquired in connection with Smith
Barney and Citi Managed Futures (see Note 3).
(6) Institutional Securities business segment activity primarily represents intangible assets disposed of in connection with MSCI. Asset
Management business segment activity represents intangible assets disposed of in connection with Crescent (see Note 25).
(7) The Asset Management business segment activity represents losses primarily related to investment management contracts that were
determined using discounted cash flow models. Impairment losses are recorded within Other expenses and Other revenues in the
consolidated statements of income (see Note 19).
(8) The Institutional Securities business segment activity primarily represents certain reinsurance licenses and a management contract.
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