Annual report pursuant to Section 13 and 15(d)

Commitments, Contingencies and Guarantees (Tables)

v2.4.0.6
Commitments, Contingencies and Guarantees (Tables)
 12 Months Ended
Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]  
Contractual Obligation, Fiscal Year Maturity Schedule
At December 31, 2012, Merrill Lynch’s commitments had the following expirations:
(dollars in millions)
 
 
 
Commitment expiration
 
Total
 
Less than
1 Year
 
1-3
Years
 
3-5
Years
 
Over 5
Years
Lending commitments
$
5,248

 
$
1,556

 
$
1,260

 
$
2,306

 
$
126

Purchasing and other commitments
3,405

 
1,586

 
962

 
636

 
221

Operating leases
3,139

 
736

 
951

 
693

 
759

Commitments to enter into resale and securities borrowing agreements
66,884

 
66,884

 
—

 
—

 
—

Commitments to enter into repurchase and securities lending agreements
42,333

 
42,333

 
—

 
—

 
—

Total
$
121,009

 
$
113,095

 
$
3,173

 
$
3,635

 
$
1,106

 
 
 
 
 
 
 
 
 
 
Schedule of Future Minimum Rental Payments for Operating Leases
At December 31, 2012, future non-cancelable minimum rental commitments are as follows:
(dollars in millions)
Total
2013
$
736

2014
506

2015
445

2016
388

2017
305

2018 and thereafter
759

Total
$
3,139

 
 
Schedule of Rent Expense
Net rent expense for each of the last three years is presented below:
(dollars in millions)
 
 
 
 
Year Ended
December 31,
 
2012
2011
2010
Rent expense
$
752

$
821

$
838

Sublease revenue
(89
)
(98
)
(137
)
Net rent expense
$
663

$
723

$
701

 
 
 
 
Schedule of Guarantor Obligations
Merrill Lynch’s guarantee arrangements and their expiration at December 31, 2012 are summarized as follows (see Note 6 for information related to derivative financial instruments within the scope of Guarantees Accounting):

(dollars in millions)
 
 
 
 
 
Expiration
 
 
 
Maximum
Payout
 
Less than
1 year
 
1-3
years
 
3-5
years
 
Over 5 years
 
Carrying
Value
Standby liquidity facilities
$
125

 
$
106

 
$
—

 
$
3

 
$
16

 
$
—

Residual value guarantees
320

 
320

 
—

 
—

 
—

 
—

Standby letters of credit and other guarantees
491

 
333

 
112

 
37

 
9

 
—

Schedule of Outstanding Claims by Category and Product
The table below presents unresolved representations and warranties claims by counterparty at December 31, 2012 and December 31, 2011. The unresolved repurchase claims include only claims where Merrill Lynch believes that the counterparty has a basis to submit claims. During the year ended December 31, 2012, Merrill Lynch received $4.8 billion of new repurchase claims, which consists of approximately $4.7 billion from private-label securitization trustees, $54 million from GSEs, $22 million from whole-loan investors and $17 million from monoline investors.


Unresolved Repurchase Claims by Counterparty
(dollars in millions)
 
 
 December 31,
 
2012
2011
GSEs
$
93

$
65

Monoline
147

136

Whole-loan investors, private-label securitization trustees and other
5,805

1,101

Total
$
6,045

$
1,302

Schedule of Loan Repurchases and Indemnification Payments
(dollars in millions)
 
 
 
 Year Ended
December 31,
 
2012
2011
Claims resolved (1)
$
73

$
62

 
 
 
Repurchases
14

12

Indemnification payments
59

46

Total payments
$
73

$
58

(1) Represents unpaid principal balance.
Schedule of Liability for Representations and Warranties
The table below presents a rollforward of the liability for representations and warranties and includes the provisions for representations and warranties exposures recorded in the years ended December 31, 2012 and December 31, 2011.
(dollars in millions)
 
 
 
   Year Ended December 31
 
2012
2011
Balance, beginning of period
$
2,847

$
213

Charge-offs
(82
)
(97
)
Provision
(754
)
2,731

Balance, end of period
$
2,011

$
2,847