10-QPeriod: Q1 FY2010

Bank of New York Mellon Corp Quarterly Report for Q1 Ended Mar 31, 2010

Filed May 7, 2010For Securities:BKBK-PKBNYBNY-PK

Summary

This 10-Q filing for Bank of New York Mellon (BK) as of March 31, 2010, primarily focuses on disclosures related to controls and procedures, legal proceedings, and equity repurchase activity. Management, including the CEO and CFO, has affirmed the effectiveness of the company's disclosure controls and procedures. No material changes to internal controls over financial reporting were noted during the first quarter of 2010. From an investor's perspective, the company is actively managing potential legal and regulatory matters, stating that while outcomes are unpredictable, they do not anticipate a material adverse effect on the consolidated financial position or liquidity, though net income in a given period could be impacted. The report also details modest share repurchases, primarily to cover employee tax obligations related to stock vesting, and notes that a significant portion of a previously authorized share repurchase program remains available.

Financial Highlights

35 data points
Beta

Revenue

$3.33B

Net Income

$559.00M

16.8% Net Margin

EPS (Diluted)

$0.46

Total Assets

$220.55B

Cash & Equivalents

$3.31B

Free Cash Flow

$1.15B

Financial Statements
Beta
Revenue$3.33B
Operating Income$601.00M
Interest Expense$118.00M
Net Income$559.00M
EPS (Basic)$0.46
EPS (Diluted)$0.46
Shares Outstanding (Basic)1.20B
Shares Outstanding (Diluted)1.21B

Key Highlights

  • 1Management, including CEO and CFO, concluded that BNY Mellon's disclosure controls and procedures were effective as of March 31, 2010.
  • 2No material changes to internal controls over financial reporting occurred in the first quarter of 2010.
  • 3BNY Mellon is involved in various pending and potential legal actions and regulatory matters.
  • 4The company does not believe that the aggregate outcome of current legal and regulatory matters will materially adversely affect its consolidated financial position or liquidity.
  • 5However, legal and regulatory matters could materially affect net income in a specific period.
  • 6BNY Mellon repurchased 659,000 shares of common stock in Q1 2010, primarily to satisfy employee tax obligations upon vesting of restricted stock.
  • 7A significant portion (33.8 million shares) of a previously authorized share repurchase program remains available as of March 31, 2010.

Frequently Asked Questions

Management, including the Chief Executive Officer and Chief Financial Officer, has evaluated the company's disclosure controls and procedures and concluded that they were effective as of March 31, 2010. Furthermore, there were no changes in internal controls over financial reporting during the first quarter of 2010 that were reasonably likely to materially affect them.

BNY Mellon is involved in numerous legal and regulatory matters. While the company cannot predict the exact outcome, it believes that, after considering reserves and insurance, these matters individually or in aggregate will not materially adversely affect its consolidated financial position or liquidity. However, these matters could have a material impact on net income in a given period.

Yes, BNY Mellon repurchased 659,000 shares of common stock in the first quarter of 2010, at an average price of $29.70 per share. These repurchases were primarily made to satisfy employee tax obligations associated with the vesting of restricted stock.

As of March 31, 2010, approximately 33.8 million shares remained available for repurchase under a Board-authorized program initiated on December 18, 2007, with no expiration date. However, no shares were repurchased under this specific public authorization during the first quarter of 2010.