Annual report pursuant to Section 13 and 15(d)

Parent Company Information

v2.4.0.6
Parent Company Information
12 Months Ended
Dec. 31, 2012
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Parent Company Information
Note 21.  
Parent Company Information
The following tables present Parent Company Only financial information:

Merrill Lynch & Co., Inc.
(Parent Company Only)
Condensed Statements of Earnings (Loss) and Comprehensive (Loss) Income
(dollars in millions)
 
For the Year Ended
December 31, 2012
 
For the Year Ended
December 31, 2011
 
For the Year Ended
December 31, 2010
 
Revenues
 

 
 

 
 

 
Principal transactions
$
(2,116
)
 
$
1,189

 
$
5

 
Management service fees (from affiliates)

 

 
213

 
Earnings from equity method investments
25

 
24

 
25

 
Other revenue
286

 
546

 
336

 
Subtotal
(1,805
)
 
1,759

 
579

 
Interest revenue
4,420

 
3,712

 
2,999

 
Less interest expense
4,324

 
4,458

 
4,550

 
Net interest revenue (expense)
96

 
(746
)
 
(1,551
)
 
Revenues, net of interest expense
(1,709
)
 
1,013

 
(972
)
 
Non-interest expenses
 

 
 

 
 

 
Compensation and benefits
536

 
704

 
430

 
Professional fees
7

 
15

 
57

 
Communications and technology
11

 
21

 
32

 
Occupancy and related depreciation
27

 
39

 
51

 
Other
528

 
615

 
673

 
Total non-interest expenses
1,109

 
1,394

 
1,243

 
Pre-tax loss
(2,818
)
 
(381
)
 
(2,215
)
 
Income tax benefit
(2,209
)
 
(1,874
)
 
(1,469
)
 
Equity in earnings (loss) of affiliates, net of tax
899

 
(3,140
)
 
4,626

 
Net earnings (loss)
290

 
(1,647
)
 
3,880

 
Other comprehensive (loss) income, net of tax
(292
)
 
19

 
(142
)
 
Comprehensive (loss) income
$
(2
)
 
$
(1,628
)
 
$
3,738

 
Preferred stock dividends

 

 
134

 
Net earnings (loss) applicable to common stockholder
$
290

 
$
(1,647
)
 
$
3,746

 


Merrill Lynch & Co., Inc.
(Parent Company Only)
Condensed Balance Sheets
(dollars in millions, except per share amounts)
 
December 31,
2012
 
December 31,
2011
ASSETS
 

 
 

Cash and cash equivalents
$
124

 
$
105

Investment securities
459

 
495

Receivables from Bank of America
17,240

 
4,169

Advances to affiliates
 

 
 

Senior advances
48,629

 
66,016

Subordinated loans and preferred securities
18,862

 
54,226

 
67,491

 
120,242

Investments in affiliates
76,743

 
41,767

Goodwill and other intangible assets
3,508

 
3,579

Other assets
4,287

 
4,606

Total Assets
$
169,852

 
$
174,963

LIABILITIES AND STOCKHOLDER'S EQUITY
 

 
 

Liabilities
 

 
 

Payables to affiliates
$
26,951

 
$
21,616

Other liabilities and accrued interest payable
6,183

 
5,289

Long-term borrowings (includes $11,422 in 2012 and $13,389 in 2011
 

 
 

measured at fair value in accordance with the fair value option election)
72,318

 
89,018

Total Liabilities
105,452

 
115,923

COMMITMENTS AND CONTINGENCIES


 


STOCKHOLDER'S EQUITY
 

 
 

Common stock (par value $1.331/3 per share; authorized; 3,000,000,000 shares; issued: 2012 and
2011 — 1,000 shares)

 

Paid-in capital
56,127

 
50,765

Accumulated other comprehensive loss (net of tax)
(527
)
 
(235
)
Retained earnings
8,800

 
8,510

Total Stockholder's Equity
64,400

 
59,040

Total Liabilities and Stockholder's Equity
$
169,852

 
$
174,963


Merrill Lynch & Co., Inc.
(Parent Company Only)
Condensed Statements of Cash Flows
(dollars in millions)
 
For the Year Ended
December 31, 2012
 
For the Year Ended
December 31, 2011
 
For the Year Ended
December 31, 2010
Cash flows from operating activities:
 

 
 

 
 

Net earnings (loss)
$
290

 
$
(1,647
)
 
$
3,880

Adjustments to reconcile net earnings (loss) to cash (used for) provided by operating activities:
 

 
 

 
 

Equity in loss (earnings) of affiliates
(899
)
 
3,140

 
(4,626
)
Depreciation and amortization
87

 
97

 
98

Share-based compensation expense
385

 
486

 
167

Gains on repurchases of long-term borrowings
(405
)
 

 

   Fair value adjustments on structured notes
2,116

 
(1,200
)
 
156

Deferred taxes
(1,210
)
 
(2,551
)
 
(317
)
Foreign exchange (gains) losses on long-term borrowings
(79
)
 
(404
)
 
(2,171
)
Other
597

 
2,717

 
1,994

Changes in operating assets and liabilities:
 

 
 

 
 

Receivables under resale agreements

 

 
1,022

Receivables from Bank of America
(8,840
)
 
5,487

 
(4,708
)
Payables under repurchase agreements

 

 
(7,177
)
Dividends and partnerships distributions from affiliates
189

 
995

 
46

Other, net
3,787

 
2,504

 
3,270

Cash (used for) provided by operating activities
(3,982
)
 
9,624

 
(8,366
)
Cash flows from investing activities:
 

 
 

 
 

Proceeds from (payments for):
 

 
 

 
 

Advances to affiliates
57,853

 
8,820

 
23,666

Maturities of available-for-sale securities

 

 
557

Sales of available-for-sale securities

 

 
10,190

Non-qualifying investments
36

 
34

 
33

Investments in affiliates
(34,268
)
 
1,836

 
(2,302
)
Cash provided by investing activities
23,621

 
10,690

 
32,144

Cash flows from financing activities:
 

 
 

 
 

Payments for:
 

 
 

 
 

Settlement and repurchases of long-term borrowings
(19,620
)
 
(20,588
)
 
(23,739
)
Dividends

 

 
(134
)
Cash used for financing activities
(19,620
)
 
(20,588
)
 
(23,873
)
Increase (decrease) in cash and cash equivalents
19

 
(274
)
 
(95
)
Cash and cash equivalents, beginning of period
105

 
379

 
474

Cash and cash equivalents, end of period
$
124

 
$
105

 
$
379

Supplemental Disclosure of Cash Flow Information:
 

 
 

 
 

Income taxes paid
$
125

 
$
130

 
$
40

Income taxes refunded(1)
(2,677
)
 
(315
)
 
(1,703
)
Interest paid
3,896

 
1,742

 
2,968


(1) Included in income taxes refunded are amounts received from Bank of America that represent payments for utilization of Merrill Lynch & Co.'s net tax deductions in the consolidated Bank of America tax returns in accordance with the intercompany tax allocation policy.

Non-cash investing and financing activities:
For the years ended December 31, 2012 and 2010, Merrill Lynch received non-cash capital contributions of approximately $1.1 billion and $1.0 billion, respectively, from Bank of America associated with certain employee stock compensation awards. In addition, as of January 1, 2010, Merrill Lynch assumed assets and liabilities in connection with the consolidation of certain VIEs. See Note 9. In October 2010, Merrill Lynch’s mandatory convertible preferred stock was automatically converted to Bank of America common stock. The redemption was settled through a non-cash intercompany transaction.
Effective on January 1, 2009, Merrill Lynch acquired the net assets of two affiliates and their respective subsidiaries from Bank of America. This was recorded as a non-cash capital contribution. See Note 1. In addition, effective on January 1, 2009, Bank of America contributed the net assets of Bank of America Securities Holdings Corporation to Merrill Lynch.