Summary
This 8-K filing from Bank of America (BAC) on April 11, 2012, announces a significant change in how the company will report its business segment results. Previously reporting under six segments, Bank of America is realigning into five segments effective for the first quarter of 2012. This change is primarily an organizational and reporting adjustment and does not impact the company's overall consolidated financial statements (Income Statement or Balance Sheet).
Key Highlights
- 1Bank of America is shifting from a six-segment reporting structure to a five-segment structure.
- 2The new segments are: Consumer & Business Banking (CBB), Consumer Real Estate Services (CRES), Global Banking, Global Markets, and Global Wealth & Investment Management (GWIM).
- 3The former Deposits and Card Services segments, along with Business Banking (from Global Commercial Banking), are now consolidated into the new CBB segment.
- 4Global Commercial Banking and Global Banking & Markets (GBAM) have been reorganized to form the new Global Banking and Global Markets segments.
- 5This realignment is an organizational and reporting change and does not alter the company's total revenue or financial position.
- 6Revised supplemental financial information reflecting these changes for prior periods (2011 and 2010 full years, and 2011 quarterly) is provided as an exhibit.
- 7The company states that management accounting methodologies and related allocations have also been refined as part of this change.
Frequently Asked Questions
The primary purpose of this 8-K filing is to inform investors about Bank of America's decision to reclassify its business segment results. This change from six to five reporting segments is based on updated organizational alignment.
No, the filing explicitly states that this business segment realignment did not affect the Consolidated Statement of Income or the Consolidated Balance Sheet. It is a change in how results are reported internally and externally, not a change in the company's actual financial performance or balance sheet figures.
The five new business segments are: Consumer & Business Banking (CBB), Consumer Real Estate Services (CRES), Global Banking, Global Markets, and Global Wealth & Investment Management (GWIM). Operations not fitting into these segments will be reported under 'All Other'.
The filing includes Exhibit 99.1, titled 'Revised Supplemental Information to Reflect Segment Realignment.' This exhibit provides supplemental information to assist investors in understanding how past results (full years 2011 and 2010, and quarterly 2011) would have been presented under the new segment structure.