Morgan Stanley 2015 Annual Report Download - page 132

MORGAN STANLEY
Consolidated Statements of Cash Flows
(dollars in millions)
2015 2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ........................................................................................... $ 6,279 $ 3,667 $ 3,613
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Deferred income taxes ........................................................................... 1,189 (231) (117)
Income from equity method investments ............................................................. (114) (156) (451)
Compensation payable in common stock and options ................................................... 1,104 1,260 1,180
Depreciation and amortization ..................................................................... 1,433 1,161 1,511
Net gain on sale of available for sale securities ........................................................ (84) (40) (45)
Impairment charges .............................................................................. 69 111 198
Provision for credit losses on lending activities ........................................................ 123 23 110
Other operating adjustments ....................................................................... 322 (72) 142
Changes in assets and liabilities:
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements ...... 9,138 (1,404) (8,233)
Trading assets, net of Trading liabilities .............................................................. 29,471 20,619 (23,598)
Securities borrowed ............................................................................. (5,708) (7,001) (8,006)
Securities loaned ................................................................................ (5,861) (7,580) (4,050)
Customer and other receivables and other assets ....................................................... (434) 3,608 6,774
Customer and other payables and other liabilities ...................................................... 4,373 27,971 26,697
Securities purchased under agreements to resell ....................................................... (4,369) 34,842 16,282
Securities sold under agreements to repurchase ........................................................ (33,257) (75,692) 23,002
Net cash provided by operating activities .................................................................... 3,674 1,086 35,009
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from (payments for):
Premises, equipment and software, net ............................................................... (1,373) (992) (1,316)
Business dispositions, net of cash disposed ........................................................... 998 989 1,147
Changes in loans, net ............................................................................ (15,816) (20,116) (10,057)
Investment securities:
Purchases .................................................................................. (47,291) (32,623) (30,557)
Proceeds from sales .......................................................................... 37,926 12,980 11,425
Proceeds from paydowns and maturities .......................................................... 5,663 4,651 4,757
Other investing activities ......................................................................... (102) (213) 140
Net cash used for investing activities ....................................................................... (19,995) (35,324) (24,461)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from (payments for):
Short-term borrowings ........................................................................... (88) 119 4
Nonredeemable noncontrolling interests ............................................................. (96) (189) (557)
Other secured financings .......................................................................... (2,370) (2,189) (10,726)
Deposits ....................................................................................... 22,490 21,165 29,113
Proceeds from:
Excess tax benefits associated with stock-based awards ................................................. 211 101 10
Derivatives financing activities ..................................................................... 512 855 1,003
Issuance of preferred stock, net of issuance costs ....................................................... 1,493 2,782 1,696
Issuance of long-term borrowings .................................................................. 34,182 36,740 27,939
Payments for:
Long-term borrowings ........................................................................... (27,289) (33,103) (38,742)
Derivatives financing activities ..................................................................... (452) (776) (1,216)
Repurchases of common stock and employee tax withholdings ........................................... (2,773) (1,458) (691)
Purchase of additional stake in Wealth Management JV ................................................. — — (4,725)
Cash dividends ................................................................................. (1,455) (904) (475)
Net cash provided by financing activities .................................................................... 24,365 23,143 2,633
Effect of exchange rate changes on cash and cash equivalents .................................................... (945) (1,804) (202)
Net increase (decrease) in cash and cash equivalents ........................................................... 7,099 (12,899) 12,979
Cash and cash equivalents, at beginning of period ............................................................. 46,984 59,883 46,904
Cash and cash equivalents, at end of period .................................................................. $ 54,083 $ 46,984 $ 59,883
Cash and cash equivalents include:
Cash and due from banks ............................................................................. $ 19,827 $ 21,381 $ 16,602
Interest bearing deposits with banks .................................................................... 34,256 25,603 43,281
Cash and cash equivalents, at end of period .................................................................. $ 54,083 $ 46,984 $ 59,883
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest were $2,672 million, $3,575 million and $4,793 million for 2015, 2014 and 2013, respectively.
Cash payments for income taxes, net of refunds, were $677 million, $886 million and $930 million for 2015, 2014 and 2013, respectively.
See Notes to Consolidated Financial Statements.
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