State Street (STT) 10-Q 2015 Q3 Quarterly report

EXHIBIT 12

STATE STREET CORPORATION

Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends

		Nine Months Ended September 30,			Years Ended December 31,
(Dollars in millions)		2015			2014			2013		2012			2011		2010
EXCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	1,634		$	2,458		$	2,686	$	2,766		$	2,536	$	2,086
Share of pre-tax income (loss) of unconsolidated entities		(11		)	(10		)	1		(15		)	37		67
Fixed charges		234			318			365		370			462		636
Adjusted earnings	(A)	$	1,857		$	2,766		$	3,052	$	3,121		$	3,035	$	2,789
Interest on short-term borrowings		$	5		$	6		$	60	$	73		$	96	$	257
Interest on long-term debt, including amortization of debt issuance costs		159			206			184		176			241		235
Portion of long-term leases representative of the interest factor(1)		70			106			121		121			125		144
Preferred stock dividends and related adjustments(2)		118			61			33		39			27		—
Fixed charges and preferred stock dividends	(B)	$	352		$	379		$	398	$	409		$	489	$	636
Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, excluding interest on deposits	(A)/(B)	5.28 x			7.30x			7.67x		7.63x			6.21x		4.39x
INCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	1,634		$	2,458		$	2,686	$	2,766		$	2,536	$	2,086
Share of pre-tax income (loss) of unconsolidated entities		(11		)	(10		)	1		(15		)	37		67
Fixed charges		301			416			458		536			682		849
Adjusted earnings	(C)	$	1,924		$	2,864		$	3,145	$	3,287		$	3,255	$	3,002
Interest on short-term borrowings and deposits		$	72		$	104		$	153	$	239		$	316	$	470
Interest on long-term debt, including amortization of debt issuance costs		159			206			184		176			241		235
Portion of long-term leases representative of the interest factor(1)		70			106			121		121			125		144
Preferred stock dividends and related adjustments(2)		118			61			33		39			27		—
Fixed charges and preferred stock dividends	(D)	$	419		$	477		$	491	$	575		$	709	$	849
Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, including interest on deposits	(C)/(D)	4.59 x			6.00x			6.41x		5.72x			4.59x		3.54x

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⁽¹⁾ The interest factor on long-term operating leases represented a reasonable approximation of the appropriate portion of operating lease expense considered to be representative of interest. The interest factor on long-term capital leases represented the amount recorded as interest expense in our consolidated statement of income.

⁽²⁾ Preferred dividends and related adjustments, including accretion, were adjusted to represent pre-tax earnings that would be required to cover dividend and accretion requirements.

STATE STREET CORPORATION

Ratios of Earnings to Fixed Charges

		Nine Months Ended September 30,			Years Ended December 31,
(Dollars in millions)		2015			2014			2013		2012			2011		2010
EXCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	1,634		$	2,458		$	2,686	$	2,766		$	2,536	$	2,086
Share of pre-tax income (loss) of unconsolidated entities		(11		)	(10		)	1		(15		)	37		67
Fixed charges		234			318			365		370			462		636
Adjusted earnings	(A)	$	1,857		$	2,766		$	3,052	$	3,121		$	3,035	$	2,789
Interest on short-term borrowings		$	5		$	6		$	60	$	73		$	96	$	257
Interest on long-term debt, including amortization of debt issuance costs		159			206			184		176			241		235
Portion of long-term leases representative of the interest factor(1)		70			106			121		121			125		144
Fixed charges	(B)	$	234		$	318		$	365	$	370		$	462	$	636
Consolidated ratios of adjusted earnings to fixed charges, excluding interest on deposits	(A)/(B)	7.94 x			8.70x			8.36x		8.44x			6.57x		4.39x
INCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	1,634		$	2,458		$	2,686	$	2,766		$	2,536	$	2,086
Share of pre-tax income (loss) of unconsolidated entities		(11		)	(10		)	1		(15		)	37		67
Fixed charges		301			416			458		536			682		849
Adjusted earnings	(C)	$	1,924		$	2,864		$	3,145	$	3,287		$	3,255	$	3,002
Interest on short-term borrowings and deposits		$	72		$	104		$	153	$	239		$	316	$	470
Interest on long-term debt, including amortization of debt issuance costs		159			206			184		176			241		235
Portion of long-term leases representative of the interest factor(1)		70			106			121		121			125		144
Fixed charges	(D)	$	301		$	416		$	458	$	536		$	682	$	849
Consolidated ratios of adjusted earnings to fixed charges, including interest on deposits	(C)/(D)	6.39 x			6.88x			6.87x		6.13x			4.77x		3.54x

___________________________

⁽¹⁾ The interest factor on long-term operating leases represented a reasonable approximation of the appropriate portion of operating lease expense considered to be representative of interest. The interest factor on long-term capital leases represented the amount recorded as interest expense in our consolidated statement of income.