Morgan Stanley 2010 Annual Report Download - page 208

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Occupancy lease agreements, in addition to base rentals, generally provide for rent and operating expense
escalations resulting from increased assessments for real estate taxes and other charges. Total rent expense, net of
sublease rental income, was $788 million, $707 million, $619 million and $56 million in 2010, 2009, fiscal 2008
and the one month ended December 31, 2008, respectively.
In connection with its commodities business, the Company enters into operating leases for both crude oil and
refined products storage and for vessel charters. These operating leases are integral parts of the Company’s
commodities risk management business. At December 31, 2010, future minimum rental commitments under such
leases were as follows (dollars in millions):
Year Ended
Operating
Equipment
Leases
2011 .................................................................... $313
2012 .................................................................... 188
2013 .................................................................... 125
2014 .................................................................... 82
2015 .................................................................... 70
Thereafter ................................................................ 203
Guarantees.
The table below summarizes certain information regarding the Company’s obligations under guarantee
arrangements at December 31, 2010:
Maximum Potential Payout/Notional Carrying
Amount
(Asset)/
Liability
Collateral/
Recourse
Years to Maturity
TotalType of Guarantee Less than 1 1-3 3-5 Over 5
(dollars in millions)
Credit derivative
contracts(1) ........... $306,459 $848,018 $671,941 $467,833 $2,294,251 $25,232 $ —
Other credit contracts ..... 61 1,416 822 3,856 6,155 (1,198) —
Non-credit derivative
contracts(1)(2) ........ 681,836 461,082 205,306 258,534 1,606,758 72,001 —
Standby letters of credit and
other financial
guarantees
issued(3)(4) .......... 1,085 2,132 354 5,633 9,204 27 5,616
Market value guarantees . . — — 180 644 824 44 116
Liquidity facilities ....... 4,884 338 187 71 5,480 — 6,857
Whole loan sales
guarantees ............ — — — 24,777 24,777 55 —
Securitization
representations and
warranties ............ — — — 94,314 94,314 25 —
General partner
guarantees ............ 189 28 56 249 522 69 —
(1) Carrying amount of derivative contracts are shown on a gross basis prior to cash collateral or counterparty netting. For further
information on derivative contracts, see Note 12.
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