PNC Bank 2007 Annual Report Download - page 26

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BlackRock
Our BlackRock business segment earned $253 million in 2007
and $187 million in 2006. Subsequent to the September 29,
2006 deconsolidation of BlackRock, these business segment
earnings are determined primarily by taking our proportionate
share of BlackRock’s earnings. Also, for this business
segment presentation, after-tax BlackRock/MLIM transaction
integration costs totaling $3 million and $65 million in 2007
and 2006, respectively, have been reclassified from
BlackRock to “Other.”
PFPC
PFPC earned $128 million for 2007 compared with $124
million in 2006. Results for 2006 benefited from the impact of
a $14 million reversal of deferred taxes related to earnings
from foreign subsidiaries following management’s
determination that the earnings would be indefinitely
reinvested outside of the United States. Apart from the impact
of this item, the earnings increase of $18 million in 2007
reflected the successful conversion of net new business,
organic growth and market appreciation.
Other
“Other” incurred a loss of $239 million in 2007 compared
with earnings for 2006 of $1.1 billion. “Other” for 2007
included the after-tax impact of the following:
• Integration costs totaling $99 million after taxes,
• A net after-tax charge of $83 million representing the
net mark-to-market adjustment on our remaining
BlackRock LTIP shares obligation partially offset by
the gain recognized in connection with PNC’s first
quarter transfer of BlackRock shares to satisfy a
portion of our BlackRock LTIP shares obligation,
and
• A $53 million after-tax charge for an indemnification
obligation related to certain Visa litigation.
“Other” earnings for 2006 included the $1.3 billion after-tax
gain on the BlackRock/MLIM transaction recorded in the
third quarter of 2006, partially offset by the after-tax impact of
charges related to our third quarter 2006 balance sheet
repositioning activities and BlackRock/MLIM integration
costs. Further information regarding the BlackRock/MLIM
transaction is included in Note 2 Acquisitions and Divestitures
included in the Notes To Consolidated Financial Statements in
Item 8 of this Report.
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