| Segment and Geographic Information |
Note 3. Segment and Geographic Information
Segment
Information
Pursuant to ASC 280, Segment Reporting, operating
segments represent components of an enterprise for which
separate financial information is available that is regularly
evaluated by the chief operating decision maker in determining
how to allocate resources and in assessing performance. The
business activities of Merrill Lynch are included within certain
of the operating segments of Bank of America. Detailed financial
information related to the operations of Merrill Lynch, however,
is not provided to Merrill Lynch’s chief operating decision
maker. As a result, Merrill Lynch does not contain any
identifiable operating segments under Segment Reporting, and
therefore the financial information of Merrill Lynch is
presented as a single segment.
Geographic
Information
Merrill Lynch conducts its business activities through offices
in the following five regions:
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United States;
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Europe, Middle East and Africa (“EMEA”);
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Pacific Rim;
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Latin America; and
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Canada.
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The principal methodologies used in preparing the geographic
information below are as follows:
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Revenues are generally recorded based on the location of the
employee generating the revenue; and
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Intercompany transfers are based primarily on service agreements.
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The information that follows, in management’s judgment,
provides a reasonable representation of each region’s
contribution to the consolidated net revenues:
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Three Months Ended
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Nine Months Ended
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Three Months Ended
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Nine Months Ended
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(dollars in millions)
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September 30, 2011
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September 30, 2011
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September 30, 2010
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September 30, 2010
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Revenues, net of interest expense
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Europe, Middle East, and Africa
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$
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568
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$
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3,217
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$
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1,079
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$
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3,811
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Pacific Rim
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692
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2,028
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421
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1,521
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Latin America
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312
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1,039
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203
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783
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Canada
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74
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227
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49
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177
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Total
Non-U.S.
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1,646
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6,511
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1,752
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6,292
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United
States(1)(2)
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4,224
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14,121
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3,984
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15,535
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Total revenues, net of interest
expense(3)
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$
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5,870
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$
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20,632
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$
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5,736
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$
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21,827
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(1)
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U.S. results for the three and
nine months ended September 30, 2011 included gains of
$2.9 billion and
$2.7 billion,
respectively, due to the impact of changes in Merrill
Lynch’s credit spreads on the carrying values of certain
long-term borrowings, primarily structured notes. U.S. results
for the three and nine months ended September 30, 2010
included losses of $0.3 billion and gains of
$1.1 billion, respectively, due to the impact of changes in
Merrill Lynch’s credit spreads on the carrying values of
certain long-term borrowings, primarily structured notes.
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(2)
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Corporate net revenues and
adjustments are reflected in the U.S. region.
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(3)
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Results for the three and nine
months ended September 30, 2011 included gains of
$0.7 billion and $0.6 billion, respectively,
associated with the valuation of derivative liabilities due to
changes in Merrill Lynch’s credit spreads. Results for the
three months ended September 30, 2010 included losses of
$0.1 billion associated with the valuation of derivative
liabilities due to changes in Merrill Lynch’s credit
spreads; the impact on the results for the nine months ended
September 30, 2010 was not material.
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