Quarterly report pursuant to Section 13 or 15(d)

Merger and Restructuring Activity

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Merger and Restructuring Activity
 9 Months Ended
Sep. 30, 2011
Business Combinations [Abstract]  
Merger and Restructuring Activity
NOTE 2 – Merger and Restructuring Activity

Merger and restructuring charges are recorded in the 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 one-time activities and do not represent ongoing costs of the fully integrated combined organization. The table below presents the components of merger and restructuring charges.

 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2011
 
2010
 
2011
 
2010
Severance and employee-related charges
$
48

 
$
88

 
$
181

 
$
362

Systems integrations and related charges
62

 
260

 
247

 
898

Other
66

 
73

 
109

 
190

Total merger and restructuring charges
$
176

 
$
421

 
$
537

 
$
1,450



For the three and nine months ended September 30, 2011, all merger-related charges related to the Merrill Lynch & Co., Inc. (Merrill Lynch) acquisition. For the three and nine months ended September 30, 2010, $420 million and $1.3 billion of merger-related charges related to the Merrill Lynch acquisition and $1 million and $197 million related to earlier acquisitions.

The table below presents the changes in restructuring reserves for the three and nine months ended September 30, 2011 and 2010. Restructuring reserves are established by a charge to merger and restructuring charges, and the restructuring charges are included in the total merger and restructuring charges in the table above. Substantially all of the amounts in the table below relate to the Merrill Lynch acquisition.

 
Restructuring Reserves
(Dollars in millions)
2011
 
2010
Balance, January 1
$
336

 
$
403

Exit costs and restructuring charges:
 
 
 
Merrill Lynch
127

 
199

Other
—

 
53

Cash payments and other
(294
)
 
(395
)
Balance, June 30
$
169

 
$
260

Exit costs and restructuring charges:
 
 
 
Merrill Lynch
45

 
87

Cash payments and other
(18
)
 
(74
)
Balance, September 30
$
196

 
$
273