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Midas Edge

MORGAN STANLEY

For the period ended Dec 31, 2023. Filed Feb 22, 2024.

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About this filing

A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Feb 22, 2024

MS$187.56+0.2%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

11. Other Assets—Equity Method Investments and Leases

  1. Other Assets—Equity Method Investments and Leases

Equity Method Investments

$ in millionsAtDecember 31, 2023AtDecember 31, 2022
Investments$1,915$1,927
$ in millions202320222021
Income (loss)$124$39$104

Equity method investments, other than investments in certain fund interests, are summarized above and are included in Other assets in the balance sheet with related income or loss included in Other revenues in the income statement. See “Net Asset Value Measurements—Fund Interests” in Note 4 for the carrying value of certain of the Firm’s fund interests, which are composed of general and limited partnership interests, as well as any related carried interest.

Japanese Securities Joint Venture

$ in millions202320222021
Income (loss) from investment in MUMSS$129$35$168

The Firm and Mitsubishi UFJ Financial Group, Inc. (“MUFG”) formed a joint venture in Japan comprising their respective investment banking and securities businesses by forming two joint venture companies, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“MUMSS”) and Morgan Stanley MUFG Securities Co., Ltd. (“MSMS”) (collectively, the “Joint Venture”). The Firm owns a 40% economic interest in the Joint Venture, and MUFG owns the other 60%.

The Firm’s 40% voting interest in MUMSS is accounted for under the equity method within the Institutional Securities business segment and is included in the equity method investment balances above. The Firm consolidates MSMS into the Institutional Securities business segment, based on its 51% voting interest.

The Firm engages in transactions in the ordinary course of business with MUFG and its affiliates; for example, investment banking, financial advisory, sales and trading, derivatives, investment management, lending, securitization and other financial services transactions. Such transactions are on substantially the same terms as those that would be

available to unrelated third parties for comparable transactions.

Leases

The Firm’s leases are principally non-cancelable operating real estate leases.

Balance Sheet Amounts Related to Leases

$ in millionsAtDecember 31, 2023AtDecember 31, 2022
Other assets—ROU assets$4,368$4,073
Other liabilities and accrued expenses—Lease liabilities5,4174,901
Weighted average:
Remaining lease term, in years8.78.6
Discount rate4.0%3.3%

Lease Liabilities

$ in millions · AtDecember 31, 2023 · AtDecember 31, 2022
2023$870
2024$913785
2025846673
2026774604
2027716548
2028644462
Thereafter2,6371,747
Total undiscounted cash flows6,5305,689
Imputed interest(1,113)(788)
Amount on balance sheet$5,417$4,901
Committed leases not yet commenced$248$970

Lease Costs

$ in millions202320222021
Fixed costs$938$841$852
Variable costs1206170187
Less: Sublease income(10)(7)(6)
Total lease cost, net$1,134$1,004$1,033
  1. Includes common area maintenance charges and other variable costs not included in the measurement of ROU assets and lease liabilities.

Cash Flows Statement Supplemental Information

$ in millions202320222021
Cash outflows—Lease liabilities$892$881$879
Non-cash—ROU assets recorded for new and modified leases1,055544578

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.

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.