Merrill Lynch & Co., Inc.		Exhibit 99.1

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.

During the third quarter of 2006, Merrill Lynch completed the merger of its Merrill Lynch Investment Managers business with BlackRock, Inc. Merrill Lynch recognized a gain associated with this merger along with other non-recurring expenses, collectively “Impact of BlackRock Merger”.

Management believes that while the results excluding these one-time compensation expenses and the impact of the BlackRock merger are considered non-GAAP measures, they depict the operating performance of the company more clearly and enable more appropriate period-to-period comparisons.

Earnings Summary

		For the Year Ended December 29, 2006(1)
		Excluding One-time
		Compensation				Impact of One-time
		Expenses & Impact of				Compensation				Impact of
(in millions, except per share amounts)		BlackRock Merger				Expenses				BlackRock Merger				GAAP Basis
Net Revenues (a)		$	32,690			$	—			$	1,969			$	34,659
Non-Interest Expenses
Compensation and benefits (b)			15,100				1,759				144				17,003
Non-compensation expenses (c)			7,172				—				58				7,230
Total Non-Interest Expenses			22,272				1,759				202				24,233
Earnings Before Income Taxes (d)			10,418				(1,759	)			1,767				10,426
Income Tax Expense (e)			2,847				(582	)			662				2,927
Net Earnings		$	7,571			$	(1,177	)		$	1,105			$	7,499
Preferred Stock Dividends		$	188			$	—			$	—			$	188
Net Earnings Applicable to Common Stockholders		$	7,383			$	(1,177	)		$	1,105			$	7,311
Earnings Per Common Share
Basic		$	8.52			$	(1.37	)(2)		$	1.27	(2)		$	8.42
Diluted		$	7.68			$	(1.23	)(2)		$	1.14	(2)		$	7.59
Average Shares Used in Computing Earnings Per Common Share
Basic			866.7				1.4				—				868.1
Diluted			961.5				1.5				—				963.0

Financial Ratios

		For the Year Ended(1)
		December 29, 2006
		Excluding One-time
		Compensation
		Expenses & Impact of
		BlackRock Merger				GAAP Basis
Ratio of compensation and benefits to net revenues (b)/(a)			46.2	%			49.1	%
Ratio of non-compensation expenses to net revenues (c)/(a)			21.9	%			20.9	%
Effective Tax Rate (e)/(d)			27.3	%			28.1	%
Pre-tax Profit Margin (d)/(a)			31.9	%			30.1	%
Average Common Equity		$	34,354			$	34,354
Impact of one-time compensation expenses and the BlackRock merger			(130	)			—
Average Common Equity			34,224				34,354
Return on Average Common Equity			21.6	%			21.3	%

Segment Data

		For the Year Ended
		Dec. 29,				Dec. 30,				Percent
(dollars in millions)		2006				2005				Inc / (Dec)
Global Markets & Investment Banking
Global Markets
FICC		$	8,133			$	6,210				31	%
Equity Markets			6,730				4,356				54
Total Global Markets net revenues			14,863				10,566				41
Investment Banking (1)
Origination:
Debt			1,735				1,444				20
Equity			1,220				952				28
Strategic Advisory Services			1,099				882				25
Total Investment Banking net revenues			4,054				3,278				24
Total net revenues (a)			18,917				13,844				37
Pre-tax earnings			5,751				4,990				15
Impact of one-time compensation expenses			1,369				—				N/M
Pre-tax earnings excluding one-time compensation expenses (b)			7,120				4,990				43
Pre-tax profit margin			30.4	%			36.0	%
Pre-tax profit margin excluding one-time compensation expenses (b)/(a)			37.6	%			36.0	%
Global Wealth Management
Global Private Client
Fee-based revenues		$	5,813			$	5,062				15	%
Transactional and origination revenues			3,301				3,207				3
Net interest profit and related hedges(2)			2,148				1,808				19
Other revenues			304				316				(4	)
Total Global Private Client net revenues			11,566				10,393				11
Global Investment Management net revenues			541				409				32
Total net revenues (a)			12,107				10,802				12
Pre-tax earnings			2,447				2,215				10
Impact of one-time compensation expenses			281				—				N/M
Pre-tax earnings excluding one-time compensation expenses (b)			2,728				2,215				23
Pre-tax profit margin			20.2	%			20.5	%
Pre-tax profit margin excluding one-time compensation expenses (b)/(a)			22.5	%			20.5	%
Merrill Lynch Investment Managers
Total net revenues (a)		$	1,900			$	1,807				5	%
Pre-tax earnings			637				586				9
Impact of one-time compensation expenses			109				—				N/M
Pre-tax earnings excluding one-time compensation expenses (b)			746				586				27
Pre-tax profit margin			33.5	%			32.4	%
Pre-tax profit margin excluding one-time compensation expenses (b)/(a)			39.3	%			32.4	%
Corporate
Total net revenues		$	1,735			$	(431	)			N/M	%
Impact of BlackRock merger			(1,969	)			—				N/M
Total net revenues excluding the BlackRock merger			(234	)			(431	)			(46	)
Pre-tax earnings			1,591				(560	)			N/M
Impact of BlackRock merger			(1,767	)			—				N/M
Pre-tax earnings excluding the BlackRock merger			(176	)			(560	)			(69	)
Total
Total net revenues		$	34,659			$	26,022				33	%
Impact of BlackRock merger			(1,969	)			—				N/M
Total net revenues excluding the BlackRock merger (a)			32,690				26,022				26
Pre-tax earnings			10,426				7,231				44
Impact of BlackRock merger			(1,767	)			—				N/M
Impact of one-time compensation expenses			1,759				—				N/M
Pre-tax earnings excluding BlackRock merger and one-time compensation expenses (b)			10,418				7,231				44
Pre-tax profit margin			30.1	%			27.8	%
Pre-tax profit margin excluding BlackRock merger and one-time compensation expenses (b)/(a)			31.9	%			27.8	%

N/M = Not Meaningful

Note: Certain prior period amounts have been reclassified to conform to the current period presentation.

(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.