Segment and Geographic Information |
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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 of the nature that could be used to allocate resources and assess the performance and operations for components 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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Europe, Middle East, and Africa (“EMEA”); |
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. |
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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(dollars in millions) |
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For the Three Months Ended June 30, 2013 |
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For The Six Months Ended June 30, 2013 |
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For the Three Months Ended June 30, 2012 |
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For The Six Months Ended June 30, 2012 |
Revenues, net of interest expense |
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Europe, Middle East, and Africa |
$ |
1,017 |
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$ |
2,383 |
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$ |
1,012 |
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$ |
2,465 |
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Pacific Rim |
649 |
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1,337 |
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387 |
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1,107 |
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Latin America |
216 |
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535 |
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320 |
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582 |
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Canada |
81 |
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159 |
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44 |
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150 |
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Total Non-U.S. |
1,963 |
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4,414 |
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1,763 |
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4,304 |
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United States(1)(2)
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4,386 |
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8,252 |
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3,352 |
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5,576 |
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Total revenues, net of interest expense |
$ |
6,349 |
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$ |
12,666 |
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$ |
5,115 |
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$ |
9,880 |
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(1) |
U.S. results for the three and six months ended June 30, 2013 included net gains of $46 million and $12 million, 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 six months ended June 30, 2012 included net losses of $36 million and $2.2 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) |
Corporate net revenues and adjustments are reflected in the U.S. region. |
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