8-KRegulation FDExhibits & Filings

BANK OF AMERICA CORP /DE/ 8-K Report, Regulation FD Disclosure (Apr 8, 2015)

Filed April 8, 2015For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

Bank of America Corporation (BAC) filed an 8-K on April 8, 2015, to disclose a significant change in its business segment reporting structure, effective January 1, 2015. This realignment is designed to better align the company's reported segments with its current management and operational structure. While this change does not impact the overall consolidated financial statements (income statement or balance sheet), it will affect how the company presents its results in future filings, starting with its First Quarter 2015 Form 10-Q. The company has reclassified prior period information to ensure comparability under the new segment structure. Investors should pay close attention to this segment realignment as it will influence the analysis of the company's performance by segment. The new structure consolidates previously separate areas, such as Home Loans moving into Consumer Banking, and creates a new segment for Legacy Assets & Servicing (LAS). Additionally, some business units have been reallocated to different segments based on client size and operational management. The company also refined its management accounting methodologies related to intersegment transactions. The attached Exhibit 99.1 provides revised supplemental information reflecting these changes for 2013 and 2014.

Key Highlights

  • 1Effective January 1, 2015, Bank of America implemented a new business segment reporting structure.
  • 2The realignment aims to better reflect how the company manages its operations.
  • 3The number of reported business segments remains five, but their composition and names have changed.
  • 4Key changes include the creation of a 'Legacy Assets & Servicing' (LAS) segment and the integration of 'Home Loans' into 'Consumer Banking'.
  • 5A portion of 'Business Banking' has been moved to 'Global Banking' based on client size.
  • 6Bank of America Merchant Services has been moved from 'Consumer & Business Banking' to 'All Other'.
  • 7Prior period financial information has been reclassified for comparability under the new segment structure.
  • 8This realignment does not alter the consolidated financial statements (Income Statement or Balance Sheet).

Frequently Asked Questions

The primary purpose of this 8-K filing is to inform investors about a change in Bank of America's business segment reporting structure, effective January 1, 2015. This realignment is intended to align how the company reports its financial results by segment with its current management structure and operational focus.

No, this segment realignment does not affect Bank of America's consolidated financial statements, such as the Consolidated Statement of Income or the Consolidated Balance Sheet. The changes are purely in how the company internally organizes and reports the results of its various business segments.

You will need to adjust your analysis to account for the new segment structure, which will be reflected in future SEC filings starting with the First Quarter 2015 Form 10-Q. Prior periods have been reclassified for comparability, so you can review the provided supplemental information (Exhibit 99.1) to understand historical performance under the new framework.

The new business segments are: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, Global Markets, and Legacy Assets & Servicing (LAS). Any remaining operations are reported in 'All Other'.