Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Information

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Segment and Geographic Information
9 Months Ended
Sep. 30, 2011
Segment and Geographic Information [Abstract]  
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:
 
•  United States;
 
•  Europe, Middle East and Africa (“EMEA”);
 
•  Pacific Rim;
 
•  Latin America; and
 
•  Canada.
 
The principal methodologies used in preparing the geographic information below are as follows:
 
•  Revenues are generally recorded based on the location of the employee generating the revenue; and
 
•  Intercompany transfers are based primarily on service agreements.
 
The information that follows, in management’s judgment, provides a reasonable representation of each region’s contribution to the consolidated net revenues:
 
                                 
    Three Months Ended
  Nine Months Ended
  Three Months Ended
  Nine Months Ended
(dollars in millions)   September 30, 2011   September 30, 2011   September 30, 2010   September 30, 2010
 
 
Revenues, net of interest expense
                               
Europe, Middle East, and Africa
  $ 568     $ 3,217     $ 1,079     $ 3,811  
Pacific Rim
    692       2,028       421       1,521  
Latin America
    312       1,039       203       783  
Canada
    74       227       49       177  
                                 
Total Non-U.S. 
    1,646       6,511       1,752       6,292  
United States(1)(2)
    4,224       14,121       3,984       15,535  
                                 
Total revenues, net of interest expense(3)
  $ 5,870     $ 20,632     $ 5,736     $ 21,827  
                                 
 
 
 
(1) 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.
(2) Corporate net revenues and adjustments are reflected in the U.S. region.
(3) 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.