Morgan Stanley 8-K 2007
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Pursuant To Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 10, 2007
(Exact Name of Registrant
as Specified in Charter)
Registrants telephone number, including area code: (212) 761-4000
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
On February 28, 2007, Morgan Stanley (the Company) sold Quilter Holdings Ltd. (Quilter), its standalone U.K. mass affluent business. The results of Quilter were formerly included within the Global Wealth Management Group business segment. The Company is filing this Current Report on Form 8-K (the Form 8-K) to update the historical consolidated financial statements and Managements Discussion and Analysis of Financial Condition and Results of Operations included in the Companys Annual Report on Form 10-K for the fiscal year ended November 30, 2006 (the 2006 Form 10-K) for discontinued operations. In accordance with Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets (SFAS No. 144), revenues and expenses associated with Quilter have been classified as discontinued operations in the Companys Quarterly Report on Form 10-Q for the quarterly period ended February 28, 2007 that was filed with the Securities and Exchange Commission (the SEC) on April 6, 2007.
Under requirements of the SEC, the same classification as discontinued operations required by SFAS No. 144 is also required for previously issued financial statements for each of the three years presented in the Companys 2006 Form 10-K, if those financial statements are incorporated by reference in subsequent filings with the SEC made under the Securities Act of 1933, as amended, even though those financial statements relate to periods prior to the sale of Quilter. This reclassification has no effect on the Companys reported net income for any reporting period.
The net gain/(loss) from discontinued operations that has been recast from continuing operations was as follows (dollars in millions):
The historical financial information in Exhibits 99.1 and 99.2 has been revised and updated from its previous presentation solely to reflect the reclassifications for discontinued operations described above for the following periods:
The Company has not modified or updated any other disclosures included in the 2006 Form 10-K, including reclassifications related to the presentation of revenues and expenses associated with certain employee deferred compensation plans (see Note 1 to the condensed consolidated financial statements included in Part I, Item 1 of the Companys Quarterly Report on Form 10-Q for the quarter ended February 28, 2007).
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: April 10, 2007