Morgan Stanley 2010 Annual Report Download - page 254

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Parent Company Only
Condensed Statements of Cash Flows
(dollars in millions)
2010 2009
Fiscal
2008
One Month
Ended
December 31,
2008
Cash flows from operating activities:
Net income (loss) .............................................. $ 4,703 $ 1,346 $ 1,707 $ (1,288)
Adjustments to reconcile net income (loss) to net cash provided by (used for)
operating activities:
Compensation payable in common stock and stock options ......... 1,260 1,265 1,838 77
Undistributed (gain) loss of subsidiaries ........................ (5,708) 307 6,844 1,305
Gain on business dispositions ................................ — (606) (1,464) —
Change in assets and liabilities:
Financial instruments owned, net of financial instruments sold, not yet
purchased .................................................. (11,848) 5,505 (2,568) 467
Other assets .................................................. 929 (5,036) (1,584) (1,015)
Other liabilities and accrued expenses .............................. 15,072 (10,134) 25,417 (4,024)
Net cash provided by (used for) operating activities ............... 4,408 (7,353) 30,190 (4,478)
Cash flows from investing activities:
Advances to and investments in subsidiaries ........................ (9,552) 13,375 (25,651) (5,013)
Securities purchased under agreement to resell with affiliate ............ (1,545) (29,255) 48,137 (12,794)
Business dispositions, net of cash disposed .......................... — 565 1,560 —
Net cash provided by (used for) investing activities ............... (11,097) (15,315) 24,046 (17,807)
Cash flows from financing activities:
Net proceeds from (payments for) short-term borrowings .............. 202 (5,743) (14,224) 504
Excess tax benefits associated with stock-based awards ................ 5 102 47 —
Net proceeds from:
Issuance of preferred stock and common stock warrant ................ — — 18,997 —
Public offerings and other issuances of common stock ................. 5,581 6,255 397 4
Issuance of long-term borrowings ................................. 26,683 30,112 35,420 9,846
Payments for:
Series D Preferred Stock and Warrant .............................. — (10,950) — —
Redemption of junior subordinated debentures related to China Investment
Corporation ................................................ (5,579) — — —
Repurchase of common stock through capital management share
repurchase program .......................................... — — (711) —
Repurchases of common stock for employee tax withholding ........... (317) (50) (1,117) (3)
Long-term borrowings .......................................... (25,322) (24,315) (44,412) (341)
Cash dividends ................................................ (1,156) (1,732) (1,227) —
Net cash provided by (used for) financing activities ............... 97 (6,321) (6,830) 10,010
Effect of exchange rate changes on cash and cash equivalents ............... (817) 549 (2,375) 2,259
Net increase (decrease) in cash and cash equivalents ...................... (7,409) (28,440) 45,031 (10,016)
Cash and cash equivalents, at beginning of period ........................ 16,799 45,239 10,224 55,255
Cash and cash equivalents, at end of period ............................. $ 9,390 $ 16,799 $ 55,255 $ 45,239
Cash and cash equivalents include:
Cash and due from banks ........................................ $ 5,672 $ 13,262 $ 16,118 $ 23,629
Interest bearing deposits with banks ............................... 3,718 3,537 39,137 21,610
Cash and cash equivalents, at end of period ............................. $ 9,390 $ 16,799 $ 55,255 $ 45,239
Supplemental Disclosure of Cash Flow Information.
Cash payments for interest were $4,801 million, $6,758 million, $12,098 million and $1,059 million for 2010,
2009, fiscal 2008 and the one month ended December 31, 2008, respectively.
Cash payments (refund) for income taxes were $556 million, $325 million, $(688) million and $2 million for
2010, 2009, fiscal 2008 and the one month ended December 31, 2008, respectively.
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