Annual report pursuant to Section 13 and 15(d)

Merger and Restructuring Activity

v2.4.0.6
Merger and Restructuring Activity
 12 Months Ended
Dec. 31, 2012
Merger and Restructuring Activity [Abstract]  
Business Combination Disclosure
Merger and Restructuring Activity
Merger and restructuring charges are recorded in the Corporation’s Consolidated Statement of Income and include incremental costs to integrate the operations of the Corporation and its most recent acquisitions. These charges represent costs associated with these activities and do not represent ongoing costs of the fully integrated combined organization. The table below presents the components of merger and restructuring charges.
 
 
 
 
 
Merger and Restructuring Charges
 
 
 
 
 
(Dollars in millions)
 
2011
 
2010
Severance and employee-related charges
 
$
226

 
$
455

Systems integrations and related charges
 
285

 
1,137

Other
 
127

 
228

Total merger and restructuring charges
 
$
638

 
$
1,820


There were no merger and restructuring charges in 2012. For 2011, all merger-related charges related to the Merrill Lynch acquisition. For 2010, merger-related charges include $1.6 billion related to the Merrill Lynch acquisition and $202 million related to earlier acquisitions.
The table below presents the changes in restructuring reserves for 2012 and 2011. Restructuring reserves are established by a charge to merger and restructuring charges, and the restructuring charges are included in the table. Substantially all of the amounts in the table relate to the Merrill Lynch acquisition.
 
 
 
 
Restructuring Reserves
 
 
(Dollars in millions)
2012
 
2011
Balance, January 1
$
234

 
$
336

Exit costs and restructuring charges
—

 
217

Cash payments and other
(234
)
 
(319
)
Balance, December 31
$
—

 
$
234


Amounts added to the restructuring reserves in 2011 related to severance and other employee-related costs.