Bank of America 2015 Annual Report Download - page 32

30 Bank of America 2015
Business Segment Operations
Segment Description and Basis of Presentation
We report our results of operations through the following five business segments: Consumer Banking, Global Wealth & Investment
Management (GWIM), Global Banking, Global Markets and Legacy Assets & Servicing (LAS), with the remaining operations recorded in
All Other. The primary activities, products and businesses of the business segments and All Other are shown below.
The Corporation periodically reviews capital allocated to its
businesses and allocates capital annually during the strategic and
capital planning processes. We utilize a methodology that
considers the effect of regulatory capital requirements in addition
to internal risk-based capital models. The Corporation’s internal
risk-based capital models use a risk-adjusted methodology
incorporating each segment’s credit, market, interest rate,
business and operational risk components. For more information
on the nature of these risks, see Managing Risk on page 47. The
capital allocated to the business segments is referred to as
allocated capital, which represents a non-GAAP financial measure.
For purposes of goodwill impairment testing, the Corporation
utilizes allocated equity as a proxy for the carrying value of its
reporting units. Allocated equity in the reporting units is comprised
of allocated capital plus capital for the portion of goodwill and
intangibles specifically assigned to the reporting unit. For
additional information, see Note 8 – Goodwill and Intangible Assets
to the Consolidated Financial Statements.
During 2015, we made refinements to the amount of capital
allocated to each of our businesses based on multiple
considerations that included, but were not limited to, risk-weighted
assets measured under Basel 3 Standardized and Advanced
approaches, business segment exposures and risk profile, and
strategic plans. As a result of this process, effective January 1,
2015, we adjusted the amount of capital being allocated to our
business segments, primarily LAS. For more information on Basel
3 risk-weighted assets measured under the Standardized and
Advanced approaches, see Capital Management on page 51.
For more information on the basis of presentation for business
segments, including the allocation of market-related adjustments
to net interest income, and reconciliations to consolidated total
revenue, net income and year-end total assets, see Note 24 –
Business Segment Information to the Consolidated Financial
Statements.
Consumer
Banking
Global Wealth
& Investment
Management
Global
Markets
Deposits
• Consumer
Deposits
• Merrill Edge
• Small
Business
Client
Management
• ALM Activities
• Equity
Investments
• International
Consumer
Card
• Merchant
Services Joint
Venture
• Liquidating
Businesses
• Residual
Expense
Allocations
• Eliminations
• Mortgage
Servicing
• Owned Legacy
Home Equity
Loan Portfolio
• Legacy
Mortgage
Exposures
Global
Banking
All
Other
• Investment
Banking
• Global
Corporate
Banking
• Global
Commercial
Banking
• Business
Banking
Legacy Assets
& Servicing
• Fixed Income
Markets
• Equity Markets
Consumer
Lending
• Consumer and
Small
Business
Credit Card
• Debit Card
• Consumer
Vehicle
Lending
• Home Loans
Bank of America Corporation
• Merrill Lynch
Global Wealth
Management
• U.S. Trust,
Bank of
America
Private Wealth
Management