Morgan Stanley 2010 Annual Report Download - page 248

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(1) In the fourth quarter of 2010, the Company recognized a pre-tax gain of $176 million in net revenues upon application of the OIS curve
within the Institutional Securities business segment (see Note 4).
(2) See Note 1 for a discussion of discontinued operations.
(3) Amounts for 2010 included a loss of $1.2 billion related to the planned disposition of Revel included within the Institutional Securities
business segment, a gain of $775 million related to the legal settlement with DFS and a gain of approximately $570 million related to the
Company’s sale of Retail Asset Management within the Asset Management business segment. Amounts for 2009 and fiscal 2008
included net gains of $499 million and $1,463 million, respectively, related to MSCI secondary offerings within the Institutional
Securities business segment.
(4) Income from continuing operations for the Institutional Securities business segment included correction of prior-period errors of $171
million ($120 million after-tax), $0.11 per diluted share, due to the reversal of valuation adjustments related to interest rate derivatives
and a cumulative negative adjustment of $120 million ($84 million after-tax), $0.08 per diluted share, resulting from incorrect valuations
of a London-based trader’s positions. The positive adjustment of $171 million related to fiscal 2006. The negative adjustment of $120
million increased income from continuing operations on a pre-tax basis by $45 million and $75 million in fiscal 2007 and fiscal 2008,
respectively. The Company does not believe the adjustments, which were recorded in the period identified, were material to those
consolidated financial statements after considering both the quantitative amount and qualitative factors as related to the affected financial
statements.
Net Interest
Institutional
Securities
Global Wealth
Management
Group
Asset
Management
Intersegment
Eliminations Total
(dollars in millions)
2010
Interest income ......................... $ 5,877 $1,587 $ 22 $(208) $ 7,278
Interest expense ......................... 6,143 465 98 (292) 6,414
Net interest ........................ $ (266) $1,122 $ (76) $ 84 $ 864
2009
Interest income ......................... $ 6,373 $1,114 $ 17 $ (27) $ 7,477
Interest expense ......................... 6,497 453 100 (345) 6,705
Net interest ........................ $ (124) $ 661 $ (83) $ 318 $ 772
Fiscal 2008
Interest income ......................... $37,604 $1,239 $131 $ (43) $38,931
Interest expense ......................... 35,860 305 205 (107) 36,263
Net interest ........................ $ 1,744 $ 934 $ (74) $ 64 $ 2,668
One Month Ended December 31, 2008
Interest income ......................... $ 1,017 $ 66 $ 8 $ (2) $ 1,089
Interest expense ......................... 1,124 15 9 (8) 1,140
Net interest ........................ $ (107) $ 51 $ (1) $ 6 $ (51)
Total Assets(1)
Institutional
Securities
Global Wealth
Management
Group
Asset
Management Total
(dollars in millions)
At December 31, 2010 .............................. $698,453 $101,058 $8,187 $807,698
At December 31, 2009 .............................. $719,232 $ 44,154 $8,076 $771,462
(1) Corporate assets have been fully allocated to the Company’s business segments.
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