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Other Assets - Equity Method Investments and Leases
 12 Months Ended
Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets - Equity Method Investments and Leases Other Assets—Equity Method Investments and Leases
Equity Method Investments
$ in millions
At
December 31, 2021
At
December 31, 2020
Investments$2,214 $2,410 
$ in millions202120202019
Income (loss)1
$104 $— $(81)
1.Includes impairments of the Investment Management business segment’s equity method investments of $41 million in the fourth quarter of 2019 related to a third-party asset manager.
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 5 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 millions202120202019
Income from investment in MUMSS$168 $80 $17 
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”) (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 millions
At
December 31, 2021
At
December 31, 2020
Other assets—ROU assets$4,268 $4,419 
Other liabilities and accrued expenses—Lease liabilities5,157 5,327 
Weighted average:
Remaining lease term, in years
8.99.5
Discount rate
3.1 %3.2 %
Lease Liabilities
$ in millions
At
December 31, 2021
At
December 31, 2020
2021$841 
2022$886 793 
2023834 740 
2024711 639 
2025593 532 
2026527 467 
Thereafter2,387 2,218 
Total undiscounted cash flows5,938 6,230 
Imputed interest
(781)(903)
Amount on balance sheet$5,157 $5,327 
Committed leases not yet commenced
$480 $278 
Lease Costs
$ in millions202120202019
Fixed costs$852 $762 $670 
Variable costs1
187 154 152 
Less: Sublease income(6)(5)(6)
Total lease cost, net$1,033 $911 $816 
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 millions202120202019
Cash outflows—Lease liabilities
$879 $765 $685 
Non-cash—ROU assets recorded for new and modified leases
578 991 514 
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.