Morgan Stanley 2014 Annual Report Download - page 159

MORGAN STANLEY
Consolidated Statements of Cash Flows
(dollars in millions)
2014 2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income .......................................................................................... $ 3,667 $ 3,613 $ 716
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Deferred income taxes .......................................................................... (231) (117) (639)
Income from equity method investments ........................................................... (156) (451) (52)
Compensation payable in common stock and options ................................................. 1,260 1,180 891
Depreciation and amortization ................................................................... 1,161 1,511 1,581
Net gain on sale of available for sale securities ...................................................... (40) (45) (78)
Impairment charges ............................................................................ 111 198 271
Provision for credit losses on lending activities ...................................................... 23 110 155
Other operating activities ....................................................................... (72) 142 (69)
Changes in assets and liabilities:
Cash deposited with clearing organizations or segregated under federal and other regulations or requirements .... (1,404) (8,233) (1,516)
Trading assets, net of Trading liabilities ............................................................ 20,664 (23,054) 6,389
Securities borrowed ............................................................................ (7,001) (8,006) 5,373
Securities loaned .............................................................................. (7,580) (4,050) 6,387
Customer and other receivables and other assets ..................................................... 3,608 6,774 (10,030)
Customer and other payables and other liabilities ..................................................... 27,971 26,697 (1,283)
Securities purchased under agreements to resell ...................................................... 34,842 16,282 (4,257)
Securities sold under agreements to repurchase ...................................................... (75,692) 23,002 20,920
Net cash provided by (used for) operating activities ........................................................... 1,131 35,553 24,759
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from (payments for):
Premises, equipment and software, net ............................................................. (992) (1,316) (1,312)
Business dispositions, net of cash disposed ......................................................... 989 1,147 1,725
Loans ....................................................................................... (20,116) (10,057) (3,486)
Investment securities:
Purchases ................................................................................ (32,623) (30,557) (24,477)
Proceeds from sales ........................................................................ 12,980 11,425 10,398
Proceeds from paydowns and maturities ........................................................ 4,651 4,757 4,738
Other investing activities ........................................................................ (213) 140 (211)
Net cash provided by (used for) investing activities ........................................................... (35,324) (24,461) (12,625)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from (payments for):
Commercial paper and other short-term borrowings .................................................. 119 4 (705)
Noncontrolling interests ........................................................................ (189) (557) (296)
Other secured financings ........................................................................ (2,189) (10,726) (6,628)
Deposits ..................................................................................... 21,165 29,113 17,604
Proceeds from:
Excess tax benefits associated with stock-based awards ................................................ 101 10 42
Derivatives financing activities ................................................................... 855 1,003 243
Issuance of preferred stock, net of issuance costs ..................................................... 2,782 1,696 —
Issuance of long-term borrowings ................................................................. 36,740 27,939 23,646
Payments for:
Long-term borrowings .......................................................................... (33,103) (38,742) (43,092)
Derivatives financing activities ................................................................... (776) (1,216) (125)
Repurchases of common stock and employee tax withholdings .......................................... (1,458) (691) (227)
Purchase of additional stake in Wealth Management JV ............................................... — (4,725) (1,890)
Cash dividends ............................................................................... (904) (475) (469)
Net cash provided by (used for) financing activities ........................................................... 23,143 2,633 (11,897)
Effect of exchange rate changes on cash and cash equivalents ................................................... (1,804) (202) (119)
Effect of cash and cash equivalents related to variable interest entities ............................................ (45) (544) (526)
Net increase (decrease) in cash and cash equivalents .......................................................... (12,899) 12,979 (408)
Cash and cash equivalents, at beginning of period ............................................................ 59,883 46,904 47,312
Cash and cash equivalents, at end of period ................................................................. $46,984 $ 59,883 $ 46,904
Cash and cash equivalents include:
Cash and due from banks ........................................................................... $21,381 $ 16,602 $ 20,878
Interest bearing deposits with banks ................................................................... 25,603 43,281 26,026
Cash and cash equivalents, at end of period ................................................................. $46,984 $ 59,883 $ 46,904
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest were $3,575 million, $4,793 million and $5,213 million for 2014, 2013 and 2012, respectively.
Cash payments for income taxes were $886 million, $930 million and $388 million for 2014, 2013 and 2012, respectively.
See Notes to Consolidated Financial Statements.
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