v3.25.4
Other Assets and Leases
 12 Months Ended
Dec. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Other Assets and Leases Other Assets and Leases
Equity Method Investments
$ in millions
At
December 31, 2025
At
December 31, 2024
Investments$2,054 $1,869 
$ in millions202520242023
Income (loss)$246 $241 $124 
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 millions202520242023
Income (loss) from investment in MUMSS$123 $146 $129 
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, including foreign exchange trading and equity transactions for institutional clients and Japanese research, 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.
Tax Equity Investments
The Firm invests in tax equity investment interests which entitle the Firm to a share of tax credits and other income tax benefits generated by the projects underlying the investments. The Firm accounts for certain renewable energy and other tax equity investments programs using the proportional amortization method.
Tax Equity Investments under the Proportional Amortization Method
$ in millionsAt
December 31,
2025 		At
December 31,
2024
Low-income housing
$1,897 $1,787 
Renewable energy and other
28 67 
Total1,2
$1,925 $1,854 
1.Amounts include unfunded equity contributions of $707 million and $613 million as of December 31, 2025 and December 31, 2024, respectively. The corresponding liabilities for the commitments to fund these equity contributions are recorded in Other liabilities and accrued expenses. The majority of these commitments are expected to be funded within 5 years.
2.Amounts exclude $45 million and $48 million as of December 31, 2025 and December 31, 2024, respectively, of tax equity investments within programs for which the Firm elected the proportional amortization method that do not meet the conditions to apply the proportional amortization method, which are accounted for as equity method investments.

Income tax credits and other income tax benefits recognized as well as proportional amortization are included in the Provision for income taxes line in the consolidated income statement and in the Depreciation and amortization line in the consolidated cash flow statement.
Net Benefits Attributable to Tax Equity Investments under the Proportional Amortization Method
$ in millions202520242023
Income tax credits and other income tax benefits$290 $301 $237 
Proportional amortization(237)(239)(197)
Net benefits included in income tax expense53 62 40 
Other income5 — — 
Net benefits$58 $62 $40 
Leases
The Firm’s leases are principally non-cancelable operating real estate leases.
Balance Sheet Amounts Related to Leases
$ in millions
At
December 31, 2025
At
December 31, 2024
Other assets—ROU assets$4,164 $4,114 
Other liabilities and accrued expenses—Lease liabilities4,996 4,937 
Weighted average:
Remaining lease term, in years8.28.5
Discount rate4.4 %4.3 %
Lease Liabilities
$ in millions
At
December 31, 2025
At
December 31, 2024
2025$772 
2026$819 790 
2027853 736 
2028751 716 
2029664 562 
2030612 482 
Thereafter2,337 1,923 
Total undiscounted cash flows$6,036 $5,981 
Imputed interest(1,040)(1,044)
Amount on balance sheet$4,996 $4,937 
Committed leases not yet commenced$163 $63 
Lease Costs
$ in millions202520242023
Fixed costs$831 $917 $938 
Variable costs1
171 181 206 
Less: Sublease income(2)(6)(10)
Total lease cost, net$1,000 $1,092 $1,134 
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 millions202520242023
Cash outflows—Lease liabilities$852 $942 $892 
Non-cash—ROU assets recorded for new and modified leases645 489 1,055 
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.