Morgan Stanley 2014 Annual Report Download - page 301

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Parent Company Only
Condensed Statements of Cash Flows
(dollars in millions)
2014 2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ............................................................... $ 3,467 $ 2,932 $ 68
Adjustments to reconcile net income to net cash provided by (used for) operating
activities:
Deferred income taxes ............................................... 98 (303) (1,653)
Compensation payable in common stock and options ...................... 1,260 1,180 891
Amortization ...................................................... (182) (47) 23
Undistributed gain of subsidiaries ...................................... (1,383) (3,528) (3,785)
Other operating activities ............................................ — — (29)
Changes in assets and liabilities:
Trading assets, net of Trading liabilities ................................. 2,307 (7,332) 9,587
Other assets ....................................................... (490) (165) 1,235
Other liabilities and accrued expenses .................................. 488 (4,192) 6,637
Net cash provided by (used for) operating activities ................................ 5,565 (11,455) 12,974
CASH FLOWS FROM INVESTING ACTIVITIES
Advances to and investments in subsidiaries ............................. (7,790) 7,458 6,461
Securities purchased under agreement to resell with affiliates ................ (7,853) 14,745 1,864
Net cash provided by (used for) investing activities ................................ (15,643) 22,203 8,325
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from (payments for) short-term borrowings ................... 189 279 (872)
Proceeds from:
Excess tax benefits associated with stock-based awards .................... 101 10 42
Issuance of preferred stock, net of issuance costs .......................... 2,782 1,696 —
Issuance of long-term borrowings ...................................... 33,031 22,944 20,582
Payments for:
Long-term borrowings ............................................... (28,917) (31,928) (41,914)
Repurchases of common stock and employee tax withholdings ............... (1,458) (691) (227)
Cash dividends .................................................... (904) (475) (469)
Net cash provided by (used for) financing activities ................................ 4,824 (8,165) (22,858)
Effect of exchange rate changes on cash and cash equivalents ........................ (208) (100) (32)
Net increase (decrease) in cash and cash equivalents ............................... (5,462) 2,483 (1,591)
Cash and cash equivalents, at beginning of period ................................. 16,212 13,729 15,320
Cash and cash equivalents, at end of period ...................................... $10,750 $ 16,212 $ 13,729
Cash and cash equivalents include:
Cash and due from banks ................................................ $ 5,068 $ 2,296 $ 1,342
Deposits with banking subsidiaries ......................................... 4,556 7,070 8,222
Interest bearing deposits with banks ........................................ 1,126 6,846 4,165
Cash and cash equivalents, at end of period ...................................... $10,750 $ 16,212 $ 13,729
Supplemental Disclosure of Cash Flow Information.
Cash payments for interest were $3,652 million, $3,733 million and $4,254 million for 2014, 2013 and 2012,
respectively.
Cash payments (refunds) for income taxes were $187 million, $268 million and $(13) million for 2014, 2013 and
2012, respectively.
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