Exhibit 99.1
 
Merrill Lynch & Co., Inc.
 
Reconciliation of Non-GAAP Measures
 
Merrill Lynch adopted Statement of Financial Accounting Standards No. 123 (as revised in 2004) for stock-based employee compensation during the first quarter of 2006. Additionally, as a result of a comprehensive review of the retirement provisions in its stock-based compensation plans, Merrill Lynch also modified the retirement eligibility requirements of existing stock awards in order to facilitate transition to more stringent retirement eligibility requirements for future stock awards. These modifications and the adoption of the new accounting standard required Merrill Lynch to accelerate the recognition of compensation expenses for affected stock awards, resulting in the “one-time compensation expenses.” These changes represent timing differences and are not economic in substance. Management believes that while the results excluding the one-time expenses are considered non-GAAP measures, they depict the operating performance of the company more clearly and enable more appropriate period-to-period comparisons.
 
Unaudited Earnings Summary
 
                         
(In millions, except per share amounts)
    For the Six Months Ended June 30, 2006
    Excluding One-time
 		  Impact of One-time
 		   
    Compensation
 		  Compensation
 		   
    Expenses(1)   Expenses(1)   GAAP Basis
 


Net Revenues(a)
  $ 16,145     $ -     $ 16,145  
                         
Non-Interest Expenses
                       
Compensation and benefits(b)
    7,971       1,759       9,730  
Non-compensation expenses
    3,473       -       3,473  
                         
Total Non-Interest Expenses
    11,444       1,759       13,203  
                         
Earnings Before Income Taxes(c)
    4,701       (1,759 )     2,942  
Income Tax Expense(d)
    1,416       (582 )     834  
                         
Net Earnings
  $ 3,285     $ (1,177 )   $ 2,108  
                         
Preferred Stock Dividends
  $ 88     $ -     $ 88  
                         
Net Earnings Applicable to Common Stockholders
  $ 3,197     $ (1,177 )   $ 2,020  
                         
Earnings Per Common Share
                       
Basic
  $ 3.63     $ (1.35 )   $ 2.28  
Diluted
  $ 3.28     $ (1.21 )   $ 2.07  
Average Shares Used in Computing Earnings Per Common Share
                       
Basic
    881.7       2.9       884.6  
Diluted
    974.4       2.8       977.2  


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Financial Ratios (unaudited)
 
                 
(dollars in millions)
    For the Six Months Ended
    June 30, 2006
    Excluding One-time
 		   
    Compensation Expenses(1)   GAAP Basis
 
Ratio of compensation and benefits to net revenues(b)/(a)
    49.4 %     60.3 %
Effective Tax Rate(d)/(c)
    30.1 %     28.3 %
Pre-tax Profit Margin(c)/(a)
    29.1 %     18.2 %
Average Common Equity
  $ 33,831     $ 33,831  
Average impact of one-time compensation expenses
    (145 )     -  
Average Common Equity
    33,686       33,831  
Annualized Return on Average Common Equity
    19.0 %     11.9 %
(1) For purposes of comparison with previously published results, data excluding the impact of the one-time compensation expenses for the first six months of 2006 assumes the impact of the one-time compensation expenses is limited to the first quarter of 2006.


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Exhibit 99.1
 
Merrill Lynch & Co., Inc.
 
Segment Data (unaudited)
 
         
(dollars in millions)    
 
    For the Six
    Months Ended
    June 30, 2006
 
Global Markets & Investment Banking
       
Global Markets
       
FICC
  $ 3,749  
Equity Markets
    3,450  
         
Total Global Markets net revenues
    7,199  
Investment Banking(1)
       
Origination:
       
Debt
    829  
Equity
    552  
Strategic Advisory Services
    553  
         
Total Investment Banking net revenues
    1,934  
         
Total net revenues(a)
    9,133  
         
Pre-tax earnings
    1,681  
Impact of one-time compensation expenses
    1,369  
         
Pre-tax earnings excluding one-time compensation expenses(b)
    3,050  
Pre-tax profit margin
    18.4 %
Pre-tax profit margin excluding one-time compensation expenses(b)/(a)
    33.4 %
Global Wealth Management
       
Global Private Client
       
Fee-based revenues
  $ 2,815  
Transactional and origination revenues
    1,757  
Net interest profit and related hedges(2)
    1,060  
Other revenues
    133  
         
Total Global Private Client net revenues
    5,765  
         
Global Investment Management net revenues
    243  
         
Total net revenues(a)
    6,008  
         
Pre-tax earnings
    1,090  
Impact of one-time compensation expenses
    281  
         
Pre-tax earnings excluding one-time compensation expenses(b)
    1,371  
Pre-tax profit margin
    18.1 %
Pre-tax profit margin excluding one-time compensation expenses(b)/(a)
    22.8 %
Merrill Lynch Investment Managers
       
Total net revenues(a)
  $ 1,200  
Pre-tax earnings
    353  
Impact of one-time compensation expenses
    109  
         
Pre-tax earnings excluding one-time compensation expenses(b)
    462  
Pre-tax profit margin
    29.4 %
Pre-tax profit margin excluding one-time compensation expenses(b)/(a)
    38.5 %
Corporate
       
Total net revenues
  $ (196 )
Pre-tax earnings
    (182 )
Total
       
Total net revenues(a)
  $ 16,145  
Pre-tax earnings
    2,942  
Impact of one-time compensation expenses
    1,759  
         
Pre-tax earnings excluding one-time compensation expenses(b)
    4,701  
Pre-tax profit margin
    18.2 %
Pre-tax profit margin excluding one-time compensation expenses(b)/(a)
    29.1 %
(1) A portion of Origination revenue is recorded in the Global Wealth Management segment.
(2) Includes interest component of non-qualifying derivatives which are included in Other Revenues.


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