Morgan Stanley 2015 Annual Report Download - page 102

For more information about resolution and recovery planning requirements and the activities of the Company and its U.S.
Bank Subsidiaries in these areas, see “Business—Supervision and Regulation—Financial Holding Company—Resolution
and Recovery Planning” in Part I, Item 1.
Off-Balance Sheet Arrangements and Contractual Obligations.
Off-Balance Sheet Arrangements.
The Company enters into various off-balance sheet arrangements, including through unconsolidated special purpose entities
(“SPEs”) and lending-related financial instruments (e.g., guarantees and commitments), primarily in connection with the
Institutional Securities and Investment Management business segments.
The Company utilizes SPEs primarily in connection with securitization activities. For information on the Company’s
securitization activities, see Note 13 to the consolidated financial statements in Item 8.
For information on the Company’s commitments, obligations under certain guarantee arrangements and indemnities, see
Note 12 to the consolidated financial statements in Item 8. For further information on the Company’s lending commitments,
see “Quantitative and Qualitative Disclosures about Market Risk—Risk Management—Credit Risk—Lending Activities” in
Item 7A.
Contractual Obligations.
In the normal course of business, the Company enters into various contractual obligations that may require future cash
payments. Contractual obligations include long-term borrowings, other secured financings, contractual interest payments,
contractual payments on time deposits, operating leases and purchase obligations.
Future Cash Payments Associated with Certain Obligations.
At December 31, 2015
Payments Due in:
2016 2017-2018 2019-2020 Thereafter Total
(dollars in millions)
Long-term borrowings(1) ....................... $ 22,396 $ 40,203 $ 35,573 $ 55,596 $ 153,768
Other secured financings(1) ..................... 2,333 3,675 1,290 331 7,629
Contractual interest payments(2) .................. 4,965 7,763 5,409 18,075 36,212
Time deposits(3) .............................. 2,604 68 — 20 2,692
Operating leases—premises(4) ................... 612 1,212 923 3,127 5,874
Purchase obligations(5) ......................... 554 438 148 233 1,373
Total(6) ................................... $ 33,464 $ 53,359 $ 43,343 $ 77,382 $ 207,548
(1) For further information on long-term borrowings and other secured financings, see Note 11 to the consolidated financial statements in Item 8. Amounts
presented for Other secured financings are financings with original maturities greater than one year.
(2) Amounts represent estimated future contractual interest payments related to unsecured long-term borrowings based on applicable interest rates at December 31,
2015.
(3) Amounts represent contractual principal and interest payments related to time deposits primarily held at the Company’s U.S. Bank Subsidiaries.
(4) For further information on operating leases covering premises and equipment, see Note 12 to the consolidated financial statements in Item 8.
(5) Purchase obligations for goods and services include payments for, among other things, consulting, outsourcing, computer and telecommunications maintenance
agreements, and certain transmission, transportation and storage contracts related to the commodities business. Purchase obligations at December 31, 2015
reflect the minimum contractual obligation under legally enforceable contracts with contract terms that are both fixed and determinable. These amounts exclude
obligations for goods and services that already have been incurred and are reflected on the consolidated statements of financial condition.
(6) Amounts exclude unrecognized tax benefits, as the timing and amount of future cash payments are not determinable at this time (see Note 20 to the consolidated
financial statements in Item 8 for further information).
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