Morgan Stanley 2010 Annual Report Download - page 74

ASSET MANAGEMENT
INCOME STATEMENT INFORMATION
2010 2009
Fiscal
2008
One Month
Ended
December 31,
2008
(dollars in millions)
Revenues:
Investment banking .................................... $ 20 $ 10 $ 26 $ 1
Principal transactions:
Trading .......................................... (49) (68) (331) (82)
Investments ....................................... 996 (173) (1,373) (43)
Commissions ......................................... — — — 1
Asset management, distribution and administration fees ........ 1,668 1,605 2,139 112
Other ................................................ 164 46 160 3
Total non-interest revenues ...................... 2,799 1,420 621 (8)
Interest income ........................................ 22 17 131 8
Interest expense ....................................... 98 100 205 9
Net interest ....................................... (76) (83) (74) (1)
Net revenues .................................. 2,723 1,337 547 (9)
Compensation and benefits .................................. 1,123 1,104 947 54
Non-compensation expenses ................................. 877 886 1,023 51
Total non-interest expenses ...................... 2,000 1,990 1,970 105
Income (loss) from continuing operations before income taxes ...... 723 (653) (1,423) (114)
Provision for (benefit from) income taxes ....................... 105 (215) (567) (44)
Income (loss) from continuing operations ....................... 618 (438) (856) (70)
Discontinued operations:
Gain (loss) from discontinued operations ................... 994 (376) (383) 4
Provision for (benefit from) income taxes ................... 335 (277) (122) 2
Net gain (loss) from discontinued operations ........ 659 (99) (261) 2
Net income (loss) .......................................... 1,277 (537) (1,117) (68)
Net income (loss) applicable to noncontrolling interests ........ 408 (50) — —
Net income (loss) applicable to Morgan Stanley .................. $ 869 $ (487) $(1,117) $ (68)
Amounts applicable to Morgan Stanley:
Income (loss) from continuing operations ................... $ 210 $ (388) $ (856) $ (70)
Net gain (loss) from discontinued operations ................ 659 (99) (261) 2
Net income (loss) applicable to Morgan Stanley ...... $ 869 $ (487) $(1,117) $ (68)
On June 1, 2010, the Company completed the sale of Retail Asset Management, including Van Kampen, to
Invesco. The Company recorded a cumulative after-tax gain of $682 million, of which approximately $570
million was recorded in 2010. The remaining gain, representing tax basis benefits, was recorded in the quarter
ended December 31, 2009. The results of Retail Asset Management are reported as discontinued operations
through the date of sale within the Asset Management business segment. Noncontrolling interests relate to the
consolidation of certain real estate funds sponsored by the Company. The increase in noncontrolling interests in
2010 is primarily related to principal investment gains of $444 million associated with these consolidated funds.
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