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MERRILL LYNCH & CO., INC.
INDEX TO FINANCIAL STATEMENT SCHEDULE
 Financial Statement Schedule
    
    Page ReferenceSchedule I  Condensed Financial Information of Registrant
    
    F-2 to F-9Condensed Statements of (Loss)/Earnings and Comprehensive
(Loss)/ Income
    
    F-2Condensed Balance Sheets
    
    F-3Condensed Statements of Cash Flows
    
    F-4Notes to Condensed Financial Statements
    
    F-5 to F-8Report of Independent Registered Public Accounting Firm
    
    F-9
  F-1




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Schedule I
 
 CONDENSED FINANCIAL INFORMATION OF REGISTRANT
MERRILL LYNCH & CO., INC.
(Parent Company Only)
CONDENSED STATEMENTS OF (LOSS)/EARNINGS AND COMPREHENSIVE (LOSS)/INCOME  (dollars in millions)
 Year Ended Last Friday in December2008
    
    
    2007
    
    
    2006(52 weeks)
    
    
    (52 weeks)
    
    
    (52 weeks)REVENUESPrincipal transactions
    
    $
    1,912
    
    
    $
    556
    
    
    $
    Management service fees (from affiliates)
    
    
    173
    
    
    
    815
    
    
    
    324Earnings from equity method investments
    
    
    232
    
    
    
    255
    
    
    
    74Other
    
    
    811
    
    
    
    (259
    )
    
    
    (154
    )Subtotal
    
    
    3,128
    
    
    
    1,367
    
    
    
    244Interest revenue
    
    
    8,044
    
    
    
    9,467
    
    
    
    6,381Less: interest expense
    
    
    5,643
    
    
    
    8,399
    
    
    
    6,322Net interest profit
    
    
    2,401
    
    
    
    1,068
    
    
    
    59Gain on merger
    
    
    
    
    
    
    
    
    
    
    422Revenues, Net of Interest Expense
    
    
    5,529
    
    
    
    2,435
    
    
    
    725NON-INTEREST EXPENSESCompensation and benefits
    
    
    632
    
    
    
    407
    
    
    
    648Professional fees
    
    
    439
    
    
    
    237
    
    
    
    190Communications and technology
    
    
    50
    
    
    
    63
    
    
    
    66Occupancy and related depreciation
    
    
    68
    
    
    
    41
    
    
    
    42Other
    
    
    780
    
    
    
    85
    
    
    
    169Payment related to price reset on common stock offering
    
    
    2,500
    
    
    
    
    
    
    
    Total Non-Interest Expenses
    
    
    4,469
    
    
    
    833
    
    
    
    1,115PRETAX EARNINGS/(LOSS) FROM CONTINUING OPERATIONS
    
    
    1,060
    
    
    
    1,602
    
    
    
    (390
    )Income tax (expense) /benefit
    
    
    (1,123
    )
    
    
    (311
    )
    
    
    767Equity in (loss)/earnings of affiliates, net of tax
    
    
    (27,549
    )
    
    
    (9,068
    )
    
    
    7,122NET (LOSS)/EARNINGS
    
    
    (27,612
    )
    
    
    (7,777
    )
    
    
    7,499Other comprehensive loss, net of tax
    
    
    (4,529
    )
    
    
    (1,179
    )
    
    
    (5
    )COMPREHENSIVE (LOSS)/INCOME
    
    $
    (32,141
    )
    
    $
    (8,956
    )
    
    $
    7,494Preferred
stock dividends
    
    $
    2,869
    
    
    $
    270
    
    
    $
    188NET (LOSS)/EARNINGS APPLICABLE TO COMMON
STOCKHOLDERS
    
    $
    (30,481
    )
    
    $
    (8,047
    )
    
    $
    7,311
    See Notes to Condensed Financial Statements.


F-2



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Schedule I
 
 CONDENSED FINANCIAL INFORMATION OF REGISTRANT
MERRILL LYNCH & CO., INC.
(Parent Company Only)
CONDENSED BALANCE SHEETS  (dollars in millions, except per share amounts)
 December 26,
    
    
    December 28,2008
    
    
    2007ASSETSCash and cash equivalents
    
    $
    12,096
    
    
    $
    8,993Cash and securities segregated for regulatory purposes or deposited with clearing organizations
    
    
    139
    
    
    
    461Receivables under resale agreements
    
    
    30,000
    
    
    
    38,727Investment securities (includes securities pledged as
collateral that can be sold or repledged of $14,003 in
2008 and $17,342 in 2007)
    
    
    16,762
    
    
    
    22,185Advances to affiliatesSenior advances
    
    
    118,163
    
    
    
    124,443Subordinated loans and preferred securities
    
    
    51,280
    
    
    
    48,078169,443
    
    
    
    172,521Investments in affiliates
    
    
    15,930
    
    
    
    26,416Equipment and facilities (net of accumulated depreciation
and amortization of $218 in 2008 and $195 in 2007)
    
    
    63
    
    
    
    64Interest and
other receivables and assets
    
    
    1,591
    
    
    
    1,772Total Assets
    
    $
    246,024
    
    
    $
    271,139LIABILITIES AND STOCKHOLDERS EQUITYLIABILITIESPayables under repurchase agreements
    
    $
    15,008
    
    
    $
    16,997Short-term borrowings
    
    
    20,128
    
    
    
    13,222Payables to affiliates
    
    
    14,508
    
    
    
    6,615Other liabilities and accrued interest payable
    
    
    3,933
    
    
    
    5,755Long-term borrowings (includes $33,171 in 2008 and $45,462 in 2007 measured at fair value in accordance with
SFAS No. 159)
    
    
    172,444
    
    
    
    196,618Total Liabilities
    
    
    226,021
    
    
    
    239,207STOCKHOLDERS EQUITYPreferred Stockholders Equity (liquidation preference of
$30,000 per share; issued: 2008  244,100 shares; 2007
 155,000 shares; liquidation preference of $1,000 per
share; issued: 2008 and 2007  115,000 shares;
liquidation preference of $100,000 per share; issued: 2008  17,000 shares)
    
    
    8,605
    
    
    
    4,383Common Stockholders EquityShares exchangeable into common stock
    
    
    
    
    
    
    39Common stock (par value $1.331/3 per share;
authorized: 3,000,000,000 shares; issued: 2008 
2,031,995,436 shares; 2007  1,354,309,819 shares)
    
    
    2,709
    
    
    
    1,805Paid-in capital
    
    
    47,232
    
    
    
    27,163Accumulated other comprehensive loss (net of tax)
    
    
    (6,318
    )
    
    
    (1,791
    )(Accumulated deficit) / retained earnings
    
    
    (8,603
    )
    
    
    23,73735,020
    
    
    
    50,953Less: Treasury stock, at cost (2008  431,742,565 shares;
2007  418,270,289 shares)
    
    
    23,622
    
    
    
    23,404Total Common Stockholders Equity
    
    
    11,398
    
    
    
    27,549Total Stockholders Equity
    
    
    20,003
    
    
    
    31,932Total
Liabilities and Stockholders Equity
    
    $
    246,024
    
    
    $
    271,139
    See Notes to Condensed Financial Statements. F-3




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Schedule I
 
 CONDENSED FINANCIAL INFORMATION OF REGISTRANT
MERRILL LYNCH & CO., INC.
(Parent Company Only)
CONDENSED STATEMENTS OF CASH FLOWS  (dollars in millions)
 Year Ended Last Friday in December2008
    
    
    2007
    
    
    2006Cash flows from operating activities:Net (loss)/earnings
    
    $
    (27,612
    )
    
    $
    (7,777
    )
    
    $
    7,499Adjustments to reconcile net (loss)/earnings to cash
used for operating activities:Gain on merger
    
    
    
    
    
    
    
    
    
    
    (422
    )Equity in loss/(earnings) of affiliates
    
    
    27,549
    
    
    
    9,068
    
    
    
    (7,122
    )Depreciation and amortization
    
    
    15
    
    
    
    15
    
    
    
    13Share-based compensation expense
    
    
    387
    
    
    
    350
    
    
    
    202Payment
related to price reset on common stock offering
    
    
    2,500
    
    
    
    
    
    
    
    Deferred taxes
    
    
    827
    
    
    
    490
    
    
    
    670Earnings from equity method investments
    
    
    (207
    )
    
    
    (228
    )
    
    
    (40
    )Amortization
of premium/(discount) on long-term borrowings
    
    
    401
    
    
    
    (543
    )
    
    
    (159
    )Unrealized
gains on long term borrowings
    
    
    (2,318
    )
    
    
    (1,589
    )
    
    
    (350
    )Foreign
exchange (gains)/losses on long-term borrowings
    
    
    (4,344
    )
    
    
    7,974
    
    
    
    3,141Other
    
    
    295
    
    
    
    214
    
    
    
    (22
    )Changes in operating assets and liabilities:Cash and securities segregated
    
    
    322
    
    
    
    (461
    )
    
    
    285Receivables under resale agreements
    
    
    8,727
    
    
    
    (31,791
    )
    
    
    (2,394
    )Payables under repurchase agreements
    
    
    (1,989
    )
    
    
    11,527
    
    
    
    (5,689
    )Dividends and partnerships distributions from affiliates
    
    
    360
    
    
    
    7,079
    
    
    
    2,796Trading investment securities
    
    
    
    
    
    
    4,688
    
    
    
    Other, net
    
    
    85
    
    
    
    998
    
    
    
    (3,129
    )Cash provided by/(used for) operating activities
    
    
    4,998
    
    
    
    14
    
    
    
    (4,721
    )Cash flows from investing activities:Proceeds from (payments for):Advances to (advances from) affiliates
    
    
    10,970
    
    
    
    (35,948
    )
    
    
    (30,134
    )Maturities of available-for-sale securities
    
    
    3,108
    
    
    
    3,023
    
    
    
    3,690Sales of available-for-sale securities
    
    
    464
    
    
    
    407
    
    
    
    9,202Purchases of available-for-sale securities
    
    
    (3,728
    )
    
    
    (10,125
    )
    
    
    (3,037
    )Non-qualifying investments
    
    
    194
    
    
    
    83
    
    
    
    268Investments in affiliates
    
    
    (17,806
    )
    
    
    (5,072
    )
    
    
    (829
    )Acquisitions, net of cash
    
    
    
    
    
    
    (2,045
    )
    
    
    Equipment and facilities, net
    
    
    (14
    )
    
    
    (6
    )
    
    
    (27
    )Cash used for investing activities
    
    
    (6,812
    )
    
    
    (49,683
    )
    
    
    (20,867
    )Cash flows from financing activities:Proceeds from (payments for):Short-term borrowings
    
    
    6,906
    
    
    
    8,940
    
    
    
    2,367Issuance and resale of long-term borrowings
    
    
    38,786
    
    
    
    93,648
    
    
    
    57,699Settlement and repurchase of long-term borrowings
    
    
    (56,577
    )
    
    
    (49,950
    )
    
    
    (24,502
    )Issuance of common stock
    
    
    9,899
    
    
    
    4,787
    
    
    
    1,838Issuance of preferred stock, net
    
    
    9,281
    
    
    
    1,123
    
    
    
    472Common stock repurchases
    
    
    
    
    
    
    (5,272
    )
    
    
    (9,088
    )Other common stock transactions
    
    
    (833
    )
    
    
    (60
    )
    
    
    539Excess tax benefits related to stock-based compensation
    
    
    39
    
    
    
    715
    
    
    
    531Dividends
    
    
    (2,584
    )
    
    
    (1,505
    )
    
    
    (1,106
    )Cash provided by financing activities
    
    
    4,917
    
    
    
    52,426
    
    
    
    28,750Increase in cash and cash equivalents
    
    
    3,103
    
    
    
    2,757
    
    
    
    3,162Cash and cash equivalents, beginning of year
    
    
    8,993
    
    
    
    6,236
    
    
    
    3,074Cash and cash equivalents, end of year
    
    $
    12,096
    
    
    $
    8,993
    
    
    $
    6,236Supplemental disclosure of cash flow informationCash paid for:Income taxes
    
    $
    128
    
    
    $
    269
    
    
    $
    1,237Interest
    
    
    5,903
    
    
    
    7,594
    
    
    
    6,413
 Non-cash investing and financing activities;
 As a result of the conversion of $6.6 billion of Merrill Lynchs mandatory convertible
preferred stock, series 1, ML & Co. recorded additional preferred dividends of $2.1
billion in 2008. The preferred dividends were paid in additional shares of common
stock and preferred stock.
 In satisfaction of Merrill Lynchs obligations under the reset provisions contained in
the investment agreement with Temasek, ML & Co. agreed to pay Temasek $2.5
billion, all of which was paid through the issuance of common stock.
 See Notes to Condensed Financial Statements.
 F-4




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NOTES TO CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY)
 NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Bank of America Acquisition
  BASIS OF PRESENTATION
   NEW ACCOUNTING PRONOUNCEMENTS
 Disclosures about Credit Derivatives
and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and
Clarification of the Effective Date of FASB Statement No. 161 Guarantors Accounting and Disclosure Requirements for Guarantees,
Including Indirect Guarantees of Indebtedness of Others
 Accounting for Convertible Debt Instruments That May Be
Settled in Cash upon Conversion (Including Partial Cash Settlement) Accounting for Convertible Debt
and Debt Issued with Stock Purchase Warrants ®
 Noncontrolling Interests in Consolidated Financial
Statements-an amendment of ARB No. 51
 Business Combinations
 F-5




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ACCOUNTING POLICIES
 Principal Transactions
 Fair Value
Measurements The Fair Value
Option for Financial Assets and Financial Liabilities
 NOTE 2.  SECURITIES FINANCING TRANSACTIONS
   NOTE 3.  RELATED PARTY TRANSACTIONS
     F-6




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NOTE 4.  LONG-TERM BORROWINGS
  (dollars in millions)2009
    
    $
    35,209
    
    
    
    20
    %2010
    
    
    20,861
    
    
    
    122011
    
    
    17,020
    
    
    
    102012
    
    
    17,737
    
    
    
    102013
    
    
    17,993
    
    
    
    112014 and thereafter
    
    
    63,624
    
    
    
    37Total
    
    $
    172,444
    
    
    
    100
    %
   NOTE 5.  COMMITMENTS, CONTINGENCIES AND GUARANTEES
 LITIGATION
   Accounting for Contingencies
 F-7




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INCOME TAXES
  Accounting for Uncertainty in Income
Taxes, an Interpretation of FASB Statement No. 109
 DERIVATIVE CONTRACTS
  OTHER COMMITMENTS
  BORROWINGS
  F-8




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
   Fair Value
Measurements, The Fair Value Option for Financial Assets and
Financial Liabilities  Including an amendment of FASB Statement
No. 115
      
 F-9