Morgan Stanley 2014 Annual Report Download - page 255

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The total of minimum rentals to be received in the future under non-cancelable operating subleases at
December 31, 2014 was $76 million.
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 $715 million, $742 million and $765 million in 2014, 2013 and 2012, 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. At December 31, 2014, future minimum rental commitments
under such leases were as follows:
Year Ended
Operating
Equipment Leases
(dollars in millions)
2015 .............................................................. $204
2016 .............................................................. 104
2017 .............................................................. 96
2018 .............................................................. 90
2019 .............................................................. 55
Thereafter .......................................................... 61
Guarantees.
The table below summarizes certain information regarding the Company’s obligations under guarantee
arrangements at December 31, 2014:
Maximum Potential Payout/Notional Carrying
Amount
(Asset)/
Liability
Collateral/
Recourse
Years to Maturity
Type of Guarantee Less than 1 1-3 3-5 Over 5 Total
(dollars in millions)
Credit derivative contracts(1) .... $ 188,357 $438,999 $233,886 $ 46,820 $ 908,062 $ (6,611) $—
Other credit contracts ........... 51 539 1 620 1,211 (500) —
Non-credit derivative
contracts(1) ................ 1,386,044 713,180 269,632 517,968 2,886,824 81,021 —
Standby letters of credit and other
financial guarantees
issued(2) ................... 607 1,102 1,056 5,792 8,557 (223) 6,434
Market value guarantees ........ 28 426 125 104 683 5 88
Liquidity facilities ............. 2,507 — — — 2,507 (4) 3,779
Whole loan sales guarantees ..... — — — 23,605 23,605 9 —
Securitization representations and
warranties .................. — — — 65,520 65,520 98 —
General partner guarantees ...... 72 — 58 352 482 71 —
(1) Carrying amounts 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.
(2) Approximately $2.1 billion of standby letters of credit are also reflected in the “Commitments” table above in primary and secondary
lending commitments. Standby letters of credit are recorded at fair value within Trading assets or Trading liabilities in the Company’s
consolidated statements of financial condition.
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