Morgan Stanley 2010 Annual Report Download - page 239

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(1) Cash and cash equivalents, securities purchased under agreements to resell, other receivables and other liabilities are valued at cost,
which approximates fair value.
(2) Derivative and other contracts in an asset position include investments in futures contracts and interest rate swaps of $2 million and $32
million, respectively.
(3) Commingled trust funds include investments in cash funds, fixed income funds and equity funds of $74 million, $573 million and $12
million, respectively.
(4) Foreign funds include investments in equity funds, bond funds and targeted cash flow funds of $15 million, $81 million and $88 million,
respectively.
(5) Derivative and other contracts in a liability position include investments in listed derivatives and interest rate swaps of $15 million and
$160 million, respectively.
The following table presents changes in Level 3 pension assets and liabilities measured at fair value for 2010:
Beginning
Balance at
January 1,
2010
Actual
Return on
Plan
Assets
Related to
Assets Still
Held at
December 31,
2010
Actual
Return
on Plan
Assets Related
to Assets Sold
during 2010
Purchases,
Sales,
Other
Settlements
and
Issuance,
net
Net
Transfers
In and/or (Out)
of Level 3
Ending
Balance
at December 31,
2010
(dollars in millions)
Investments
Commingled trust funds .... $12 $— $— $(12) $— $—
Other investments ......... 2 — — 21 — 23
Total investments ..... $14 $— $— $ 9 $— $ 23
The following table presents changes in Level 3 pension assets and liabilities measured at fair value for 2009:
Beginning
Balance at
January 1,
2009
Actual
Return on
Plan Assets
Related to
Assets Still
Held at
December 31,
2009
Actual
Return
on Plan Assets
Related to
Assets Sold
during 2009
Purchases,
Sales,
Other
Settlements and
Issuance, net
Net Transfers
In and/or (Out)
of Level 3
Ending
Balance
at December 31,
2009
(dollars in millions)
Investments
Commingled trust funds(1) . . . $792 $(195) $ 19 $ 43 $(647) $12
Other investments ........... 2 — — — — 2
Total investments ....... $794 $(195) $ 19 $ 43 $(647) $14
(1) Net transfers out represents reclassification of commingled trust funds from Level 3 to Level 2 based on current accounting guidance for
investments that are readily redeemable at their NAV.
Cash Flows.
At December 31, 2010, the Company expects to contribute approximately $50 million to its pension and
postretirement benefit plans in 2011 based upon the plans’ current funded status and expected asset return
assumptions for 2011, as applicable.
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