Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | STATE STREET Corp | ||
Entity Central Index Key | 93,751 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 381,939,896 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 20,880 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fee revenue: | |||
Servicing fees | $ 5,073 | $ 5,153 | $ 5,108 |
Management fees | 1,292 | 1,174 | 1,207 |
Trading services | 1,099 | 1,146 | 1,084 |
Securities finance | 562 | 496 | 437 |
Processing fees and other | 90 | 309 | 174 |
Total fee revenue | 8,116 | 8,278 | 8,010 |
Net interest revenue: | |||
Interest revenue | 2,512 | 2,488 | 2,652 |
Interest expense | 428 | 400 | 392 |
Net interest revenue | 2,084 | 2,088 | 2,260 |
Gains (losses) related to investment securities, net: | |||
Gains (losses) from sales of available-for-sale securities, net | 10 | (5) | 15 |
Losses from other-than-temporary impairment | (2) | (1) | (1) |
Losses reclassified (from) to other comprehensive income | (1) | 0 | (10) |
Gains (losses) related to investment securities, net | 7 | (6) | 4 |
Total revenue | 10,207 | 10,360 | 10,274 |
Provision for loan losses | 10 | 12 | 10 |
Expenses: | |||
Compensation and employee benefits | 4,353 | 4,061 | 4,060 |
Information systems and communications | 1,105 | 1,022 | 976 |
Transaction processing services | 800 | 793 | 784 |
Occupancy | 440 | 444 | 461 |
Acquisition and restructuring costs | 209 | 25 | 133 |
Professional services | 379 | 490 | 440 |
Amortization of other intangible assets | 207 | 197 | 222 |
Other | 584 | 1,018 | 751 |
Total expenses | 8,077 | 8,050 | 7,827 |
Income before income tax expense | 2,120 | 2,298 | 2,437 |
Income tax expense (benefit) | (22) | 318 | 415 |
Net income from non-controlling interest | 1 | 0 | 0 |
Net income | 2,143 | 1,980 | 2,022 |
Net income available to common shareholders | $ 1,968 | $ 1,848 | $ 1,958 |
Earnings per common share: | |||
Basic (in USD per share) | $ 5.03 | $ 4.53 | $ 4.62 |
Diluted (in USD per share) | $ 4.97 | $ 4.47 | $ 4.53 |
Average common shares outstanding (in thousands): | |||
Basic (in shares) | 391,485 | 407,856 | 424,223 |
Diluted (in shares) | 396,090 | 413,638 | 432,007 |
Cash dividends declared (in USD per share) | $ 1.44 | $ 1.32 | $ 1.16 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,143 | $ 1,980 | $ 2,022 |
Other comprehensive income (loss), net of related taxes: | |||
Foreign currency translation, net of related taxes of ($11), ($101) and ($94), respectively | (372) | (735) | (889) |
Net unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment and net of related taxes of ($119), ($195) and $269, respectively | (181) | (331) | 437 |
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of $16, $5 and ($15), respectively | 23 | 12 | (24) |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $5, $8 and $12, respectively | 7 | 13 | 18 |
Net unrealized gains (losses) on cash flow hedges, net of related taxes of ($42), $24 and $74, respectively | (64) | 17 | 115 |
Net unrealized gains (losses) on retirement plans, net of related taxes of $1, $51 and ($50), respectively | (11) | 89 | (69) |
Other comprehensive income (loss) | (598) | (935) | (412) |
Total comprehensive income | $ 1,545 | $ 1,045 | $ 1,610 |
Consolidated Statement of Comp4
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation, Taxes | $ (11) | $ (101) | $ (94) |
Change in net unrealized losses on available-for-sale securities, Taxes | (119) | (195) | 269 |
Change in net unrealized losses on available-for-sale securities designated in fair value hedges, Taxes | 16 | 5 | (15) |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, Taxes | 5 | 8 | 12 |
Change in net unrealized losses on cash flow hedges, Taxes | (42) | 24 | 74 |
Change in unrealized losses on retirement plans, Taxes | $ 1 | $ 51 | $ (50) |
Consolidated Statement of Condi
Consolidated Statement of Condition - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Cash and due from banks | $ 1,314 | $ 1,207 |
Interest-bearing deposits with banks | 70,935 | 75,338 |
Securities purchased under resale agreements | 1,956 | 3,404 |
Trading account assets | 1,024 | 849 |
Investment securities available-for-sale | 61,998 | 70,070 |
Investment securities held-to-maturity (fair value of $34,994 and $29,798) | 35,169 | 29,952 |
Loans and leases (less allowance for losses of $51 and $46) | 19,704 | 18,753 |
Premises and equipment (net of accumulated depreciation of $3,333 and $4,820) | 2,062 | 1,894 |
Accrued interest and fees receivable | 2,644 | 2,346 |
Goodwill | 5,814 | 5,671 |
Other intangible assets | 1,750 | 1,768 |
Other assets | 38,328 | 33,903 |
Total assets | 242,698 | 245,155 |
Deposits: | ||
Noninterest-bearing | 59,397 | 65,800 |
Interest-bearing—U.S. | 30,911 | 29,958 |
Interest-bearing—non-U.S. | 96,855 | 95,869 |
Total deposits | 187,163 | 191,627 |
Securities sold under repurchase agreements | 4,400 | 4,499 |
Other short-term borrowings | 1,585 | 1,754 |
Accrued expenses and other liabilities | 16,901 | 14,643 |
Long-term debt | 11,430 | 11,497 |
Total liabilities | 221,479 | 224,020 |
Commitments, guarantees and contingencies (Notes 12 and 13) | ||
Shareholders’ equity: | ||
Common stock, $1 par: 750,000,000 shares authorized; 503,879,642 and 503,879,642 shares issued | 504 | 504 |
Surplus | 9,782 | 9,746 |
Retained earnings | 17,459 | 16,049 |
Accumulated other comprehensive income (loss) | (2,040) | (1,442) |
Treasury stock, at cost (121,940,502 and 104,227,647 shares) | (7,682) | (6,457) |
Total shareholders’ equity | 21,219 | 21,103 |
Non-controlling interest-equity | 0 | 32 |
Total shareholders' equity | 21,219 | 21,135 |
Total liabilities and shareholders' equity | 242,698 | 245,155 |
Series C Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | 491 | 491 |
Series D Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | 742 | 742 |
Series E Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | 728 | 728 |
Series F Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | 742 | 742 |
Series G Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | $ 493 | $ 0 |
Consolidated Statement of Cond6
Consolidated Statement of Condition (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Investment securities held-to-maturity, fair value | $ 34,994 | $ 29,798 |
Loans and leases, allowance for losses | 53 | 46 |
Premises and equipment, accumulated depreciation | $ 3,333 | $ 4,820 |
Stockholders' Equity: | ||
Preferred stock, no par value (in USD per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 3,500,000 | 3,500,000 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 503,879,642 | 503,879,642 |
Treasury stock, shares | 121,940,502 | 104,227,647 |
Series C Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 5,000 | 5,000 |
Preferred stock, shares outstanding | 5,000 | 5,000 |
Series D Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 7,500 | 7,500 |
Preferred stock, shares outstanding | 7,500 | 7,500 |
Series E Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 7,500 | 7,500 |
Preferred stock, shares outstanding | 7,500 | 7,500 |
Series F Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 7,500 | 7,500 |
Preferred stock, shares outstanding | 7,500 | 7,500 |
Series G Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 5,000 | 0 |
Preferred stock, shares outstanding | 5,000 | 0 |
Consolidated Statement of Chang
Consolidated Statement of Changes In Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | PREFERRED STOCK | COMMON STOCK | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | TREASURY STOCK |
Beginning balance at Dec. 31, 2013 | $ 20,248 | $ 491 | $ 504 | $ 9,776 | $ 13,265 | $ (95) | $ (3,693) |
Beginning balance (shares) at Dec. 31, 2013 | 503,883 | 69,754 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,022 | ||||||
Other comprehensive income (loss) | (412) | (412) | |||||
Preferred stock issued | 1,470 | 1,470 | |||||
Cash dividends declared: | |||||||
Common stock dividends | (490) | (490) | |||||
Preferred stock cash dividend | (61) | (61) | |||||
Common stock acquired | (1,650) | $ (1,650) | |||||
Common stock acquired (shares) | 23,749 | ||||||
Common stock awards and options exercised, including related taxes | 202 | 17 | $ 185 | ||||
Common stock awards and options exercised, including related taxes (shares) | (3) | (4,805) | |||||
Other | (1) | (2) | 1 | ||||
Other (shares) | 13 | ||||||
Ending balance at Dec. 31, 2014 | 21,328 | 1,961 | $ 504 | 9,791 | 14,737 | (507) | $ (5,158) |
Ending balance (shares) at Dec. 31, 2014 | 503,880 | 88,685 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,980 | ||||||
Other comprehensive income (loss) | (935) | (935) | |||||
Preferred stock issued | 742 | 742 | |||||
Cash dividends declared: | |||||||
Common stock dividends | (536) | (536) | |||||
Preferred stock cash dividend | (130) | (130) | |||||
Common stock acquired | (1,520) | $ (1,520) | |||||
Common stock acquired (shares) | 20,521 | ||||||
Common stock awards and options exercised, including related taxes | 180 | (41) | $ 221 | ||||
Common stock awards and options exercised, including related taxes (shares) | (4,976) | ||||||
Other | (6) | (4) | (2) | ||||
Other (shares) | (2) | ||||||
Ending balance at Dec. 31, 2015 | 21,103 | 2,703 | $ 504 | 9,746 | 16,049 | (1,442) | $ (6,457) |
Ending balance (shares) at Dec. 31, 2015 | 503,880 | 104,228 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,143 | 2,143 | |||||
Other comprehensive income (loss) | (598) | (598) | |||||
Preferred stock issued | 493 | 493 | |||||
Cash dividends declared: | |||||||
Common stock dividends | (559) | (559) | |||||
Preferred stock cash dividend | (173) | (173) | |||||
Common stock acquired | (1,365) | $ (1,365) | |||||
Common stock acquired (shares) | 21,098 | ||||||
Common stock awards and options exercised, including related taxes | 175 | 36 | $ 139 | ||||
Common stock awards and options exercised, including related taxes (shares) | (3,369) | ||||||
Other | 0 | (1) | $ 1 | ||||
Other (shares) | (16) | ||||||
Ending balance at Dec. 31, 2016 | $ 21,219 | $ 3,196 | $ 504 | $ 9,782 | $ 17,459 | $ (2,040) | $ (7,682) |
Ending balance (shares) at Dec. 31, 2016 | 503,880 | 121,941 |
Consolidated Statement of Chan8
Consolidated Statement of Changes In Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in USD per share) | $ 1.44 | $ 1.32 | $ 1.16 |
Common stock awards and options exercised, related taxes | $ 13 | $ 70 | $ 72 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities: | |||
Net income | $ 2,143 | $ 1,980 | $ 2,022 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Deferred income tax (benefit) expense | (358) | (168) | 60 |
Amortization of other intangible assets | 207 | 197 | 222 |
Other non-cash adjustments for depreciation, amortization and accretion, net | 722 | 604 | 477 |
(Gains) losses related to investment securities, net | (7) | 6 | (4) |
Change in trading account assets, net | (175) | 75 | (81) |
Change in accrued interest and fees receivable, net | (298) | (104) | (119) |
Change in collateral deposits, net | (18) | (6,662) | (4,362) |
Change in unrealized (gains) losses on foreign exchange derivatives, net | (1,057) | 982 | (2,042) |
Change in other assets, net | 1,772 | 1,156 | 3,612 |
Change in accrued expenses and other liabilities, net | (1,147) | (48) | (635) |
Other, net | 506 | 579 | 289 |
Net cash provided by (used in) operating activities | 2,290 | (1,403) | (561) |
Investing Activities: | |||
Net (increase) decrease in interest-bearing deposits with banks | 4,403 | 18,185 | (29,266) |
Net (increase) decrease in securities purchased under resale agreements | 1,448 | (1,014) | 3,840 |
Proceeds from sales of available-for-sale securities | 1,401 | 12,309 | 9,766 |
Proceeds from maturities of available-for-sale securities | 30,070 | 28,025 | 36,120 |
Purchases of available-for-sale securities | (30,162) | (25,397) | (43,146) |
Proceeds from maturities of available-for-sale securities | 7,942 | 3,842 | 3,217 |
Purchases of held-to-maturity securities | (8,425) | (9,398) | (3,778) |
Net increase in loans and leases | (924) | (561) | (4,785) |
Business acquisitions | (437) | 0 | 0 |
Purchases of equity investments and other long-term assets | (643) | (366) | (182) |
Purchases of premises and equipment, net | (613) | (703) | (427) |
Other, net | 170 | 73 | 149 |
Net cash provided by (used in) investing activities | 4,230 | 24,995 | (28,492) |
Financing Activities: | |||
Net increase (decrease) in time deposits | 8,488 | (9,878) | 54,404 |
Net decrease in all other deposits | (12,952) | (7,535) | (27,632) |
Net increase (decrease) in other short-term borrowings | (268) | (7,074) | 1,575 |
Proceeds from issuance of long-term debt, net of issuance costs | 1,492 | 2,983 | 994 |
Payments for long-term debt and obligations under capital leases | (1,441) | (1,155) | (788) |
Proceeds from issuance of preferred stock, net | 493 | 742 | 1,470 |
Proceeds from exercises of common stock options | 0 | 4 | 14 |
Purchases of common stock | (1,365) | (1,520) | (1,650) |
Excess tax benefit related to stock-based compensation | 13 | 70 | 72 |
Repurchases of common stock for employee tax withholding | (122) | (222) | (232) |
Payments for cash dividends | (723) | (655) | (539) |
Other, net | (28) | 0 | 0 |
Net cash (used in) provided by financing activities | (6,413) | (24,240) | 27,688 |
Net increase (decrease) | 107 | (648) | (1,365) |
Cash and due from banks at beginning of period | 1,207 | 1,855 | 3,220 |
Cash and due from banks at end of period | 1,314 | 1,207 | 1,855 |
Supplemental disclosure: | |||
Interest paid | 441 | 385 | 398 |
Income taxes paid, net | $ 371 | $ 211 | $ 358 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation: The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the Parent Company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank. We have two lines of business: Investment Servicing provides products and services including: custody; product- and participant-level accounting; daily pricing and administration; master trust and master custody; record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance; our enhanced custody product, which integrates principal securities lending and custody; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk and compliance analytics to support institutional investors. Investment Management , through SSGA, provides a broad array of investment management, investment research and investment advisory services to corporations, public funds and other sophisticated investors. SSGA offers passive and active asset management strategies across equity, fixed-income, alternative, multi-asset solutions (including OCIO) and cash asset classes. Products are distributed directly and through intermediaries using a variety of investment vehicles, including ETFs, such as the SPDR ® ETF brand. Consolidation: Our consolidated financial statements include the accounts of the Parent Company and its majority- and wholly-owned and otherwise controlled subsidiaries, including State Street Bank. All material inter-company transactions and balances have been eliminated. Certain previously reported amounts have been reclassified to conform to current-year presentation. We consolidate subsidiaries in which we exercise control. Investments in unconsolidated subsidiaries, recorded in other assets, generally are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the operations of the investee. For investments accounted for under the equity method, our share of income or loss is recorded in processing fees and other revenue in our consolidated statement of income. Investments not meeting the criteria for equity-method treatment are accounted for under the cost method of accounting. Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue, and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. Foreign Currency Translation: The assets and liabilities of our operations with functional currencies other than the U.S. dollar are translated at month-end exchange rates, and revenue and expenses are translated at rates that approximate average monthly exchange rates. Gains or losses from the translation of the net assets of subsidiaries with functional currencies other than the U.S. dollar, net of related taxes, are recorded in AOCI, a component of shareholders’ equity. Cash and Cash Equivalents: For purposes of the consolidated statement of cash flows, cash and cash equivalents are defined as cash and due from banks. Interest-Bearing Deposits with Banks: Interest-bearing deposits with banks generally consist of highly liquid, short-term investments maintained at the Federal Reserve Bank and other non-U.S. central banks with original maturities at the time of purchase of one month or less. Securities Purchased Under Resale Agreements and Securities Sold Under Repurchase Agreements: Securities purchased under resale agreements and sold under repurchase agreements are treated as collateralized financing transactions, and are recorded in our consolidated statement of condition at the amounts at which the securities will be subsequently resold or repurchased, plus accrued interest. Our policy is to take possession or control of securities underlying resale agreements either directly or through agent banks, allowing borrowers the right of collateral substitution and/or short-notice termination. We revalue these securities daily to determine if additional collateral is necessary from the borrower to protect us against credit exposure. We can use these securities as collateral for repurchase agreements. For securities sold under repurchase agreements collateralized by our investment securities portfolio, the dollar value of the securities remains in investment securities in our consolidated statement of condition. Where a master netting agreement exists or both parties are members of a common clearing organization, resale and repurchase agreements with the same counterparty or clearing house and maturity date are recorded on a net basis. Fee and Net Interest Revenue: Fees from investment servicing, investment management, securities finance, trading services and certain types of processing fees and other revenue are recorded in our consolidated statement of income based on estimates or specific contractual terms, including mutually agreed changes to terms, as transactions occur or services are rendered, provided that persuasive evidence exists, the price to the client is fixed or determinable and collectability is reasonably assured. Amounts accrued at period-end are recorded in accrued interest and fees receivable in our consolidated statement of condition. Performance fees generated by our investment management activities are recorded when earned, based on predetermined benchmarks associated with the applicable fund’s performance. Interest revenue on interest-earning assets and interest expense on interest-bearing liabilities are recorded in our consolidated statement of income as components of net interest revenue, and are generally based on the effective yield of the related financial asset or liability. Other Significant Policies: The following table identifies our other significant accounting policies and the note and page where a detailed description of each policy can be found. Fair Value Note 2 Page Investment Securities Note 3 Page Loans and Leases Note 4 Page Goodwill and Other Intangible Assets Note 5 Page Derivative Financial Instruments Note 10 Page Offsetting Arrangements Note 11 Page Contingencies Note 13 Page Variable Interest Entities Note 14 Page Regulatory Capital Note 16 Page Equity-Based Compensation Note 18 Page Income Taxes Note 22 Page Earnings Per Common Share Note 23 Page Acquisition: On July 1, 2016, we completed our acquisition of GE Asset Management ("GEAM") from General Electric Company, with a total purchase price of approximately $485 million . The acquisition of GEAM extends our core investment management capabilities, including in the high growth OCIO markets, and enhances our capabilities in connection with the delivery of value added solutions to our client base. AUM associated with the acquired GEAM operations was $112 billion as of the date of acquisition. We accounted for this acquisition as a business combination and, in accordance with ASC Topic 805, Business Combinations , we have recorded assets acquired and liabilities assumed at their respective fair values as of the acquisition date. Our consolidated financial statements include the operating results for the acquired business from the date of acquisition, July 1, 2016. Recent Accounting Developments: Relevant standards that were recently issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The standard, and its related amendments, will replace existing revenue recognition standards and expand the disclosure requirements for revenue arrangements with customers. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). January 1, 2018 We are currently assessing the full impact of the revenue recognition standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption. The standard does not apply to revenue associated with financial instruments, including loans and securities, or revenue recognized under other U.S. GAAP standards. Therefore net interest revenue, securities gains/ losses, revenue related to derivative instruments are not impacted by the standard. Our implementation efforts include the scoping of material revenue streams into cohorts, analysis of underlying contracts for each cohort, business unit workshops to further assess specific contracts and products, and the development of updated disclosures. Based on our efforts to date, we expect both the timing and amount of our material revenue streams, including servicing fees, management fees, trading services, and securities finance to remain substantially unchanged as these revenues likely will continue to be recognized over time. Specifically, under the new standard we expect to recognize revenue related to these activities ratably over the term of the related agreements with customers as the customer simultaneously benefits from the services as they are performed. Due to the complexity of certain of our agreements, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms, and certain aspects may vary in some instances from recognition ratably over the contract term. While we have not yet identified any material changes, we continue to monitor industry progress and focus our assessment on areas such as any additional costs that may require capitalization under the new standard as well as assessing the impact of changes to principal and agent guidance. The new standard modified some of the principal and agent considerations which may result in changes to gross or net treatment of revenue and expenses but would not affect final net income. Although we currently expect no material changes to the timing or amount of revenue, we are still assessing the operational and disclosure impacts of each transition method. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements. Based on our initial assessments, we do not currently anticipate this standard to have a material impact on our consolidated financial statements due to the limited number of investments on our consolidated statement of condition that are within scope of the standard. ASU 2016-02, Leases (Topic 842) The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. January 1, 2019 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, primarily real estate leases for office space, as well as additional disclosure on all our lease obligations. ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force) The standard clarifies that the novation of a derivative contract that is part of a hedge accounting relationship does not automatically require a dedesignation of that hedge relationship. This may be applied on a prospective or modified retrospective basis. January 1, 2017 State Street will apply this standard prospectively as applicable, but we do not anticipate a material impact on our consolidated financial statements. Relevant standards that were recently issued but not yet adopted (continued) Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The standard simplifies the guidance related to stock compensation, including the accounting for income taxes by eliminating the windfall pool and requiring recognition of all excess tax benefits and deficiencies within the statement of income, as well as changes in the accounting for forfeitures, classification in the statement of cash flows and tax withholding requirements. January 1, 2017 We anticipate increased income statement volatility due to the recognition of all excess tax benefits and deficiencies within the consolidated statement of income. Income statement volatility will be driven by the number of shares vesting in any given period, and the change in share price between grant date and vesting. Directionally, increasing share prices from grant date to vesting date will result in lower income tax expense and higher net income. Upon adoption of the standard on January 1, 2017, excess tax benefits accumulated in surplus of approximately $352 million will be reversed through retained earnings. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities, and other financial assets, held at the reporting date to be measured based on historical experience, current conditions, and reasonable supportable forecasts. Credit losses on available for sale securities will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. January 1, 2020 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate a significant implementation effort to ensure that expected credit losses are calculated in accordance with the standard. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and are currently developing key accounting policies, evaluating existing credit loss models and processes and identifying a complete set of data requirements and sources. Based on our analysis to date, we expect a significant effort to develop new or modified credit loss models and that the timing of the recognition of credit losses will accelerate under the new standard. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) The standard amends the statement of cash flow guidance to address specific cash flow issues with the objective of reducing the existing diversity in practice. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements, however based on our current presentation we do not anticipate a significant change to our financial statement presentation of the statement of cash flows. Relevant standards that were adopted during the year ended December 31, 2016: We adopted ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, effective January 1, 2016. The implementation of the new standard did not result in any significant changes to our previous consolidation conclusions. We adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , effective January 1, 2016 with retrospective application for all prior periods presented. The implementation of this standard resulted in debt issuance costs of $38 million and $37 million as of December 31, 2016 and December 31, 2015, respectively, being netted against long-term debt in our consolidated statement of condition. Summary of Significant Accounting Policies Basis of Presentation: The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the parent company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank. The accompanying Consolidated Financial Statements should be read in conjunction with the financial and risk factor information included in our 2015 Form 10-K, which we previously filed with the SEC. The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue, and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ. Our consolidated statement of condition as of December 31, 2015 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements. Acquisition On July 1, 2016, we completed our acquisition of GE Asset Management ("GEAM") from General Electric Company, with a total initial purchase price of approximately $437 million and approximately $46 million in potential incremental purchase price related to future opportunities with General Electric. The acquisition of GEAM extends our core investment management capabilities, including in the high growth OCIO markets, and enhances our capabilities in connection with the delivery of value-added solutions to our client base. AUM associated with the acquired GEAM operations was $112 billion as of September 30, 2016. We accounted for this acquisition as a business combination and, in accordance with ASC Topic 805, Business Combinations , we have recorded assets acquired and liabilities assumed at their respective fair values as of the acquisition date. Our consolidated financial statements include the operating results for the acquired business from the date of acquisition, July 1, 2016. Recent Accounting Developments: Relevant standards that were recently issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The standard, and its related amendments, will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements with customers. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. January 1, 2018 We are currently assessing the impact of the standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements. ASU 2016-02, Leases (Topic 842) The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. January 1, 2019 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, as well as additional disclosure on our leases. ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force) The standard clarifies that a change in the counterparty to a derivative instrument that is designated as a hedging instrument would result in dedesignation of the hedging relationship. This may be applied on a prospective or modified retrospective basis. January 1, 2017 Our adoption of the standard will not have a material impact on our consolidated financial statements. ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The standard simplifies the guidance related to stock compensation, including the accounting for income taxes by eliminating the windfall pool and requiring recognition of all excess tax benefits and deficiencies within the statement of income, as well as changes in the accounting for forfeitures, classification in the statement of cash flows and tax withholding requirements. January 1, 2017 We anticipate increased income statement volatility due to the recognition of all excess tax benefits and deficiencies within the statement of income. We do not anticipate early adoption of this standard. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard requires all expected credit losses for financial assets held at the reporting date to be measured based on historical experience, current conditions, and reasonable supportable forecasts. The standard will utilize forward-looking information to determine credit loss estimates. It will require immediate recognition of the full amount of credit losses that are expected for certain financial assets. January 1, 2020 We are currently assessing the impact of the standard on our consolidated financial statements. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) The standard amends the statement of cash flow guidance to address specific cash flow issues with the objective of reducing the existing diversity in practice. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements, however based on our current presentation we do not anticipate a significant change to our financial statement presentation of the statement of cash flows. Relevant standards that were adopted during the nine months ended September 30, 2016: We adopted ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, effective January 1, 2016. The implementation of the new standard did not result in any changes to our previous consolidation conclusions. We adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , effective January 1, 2016 with retrospective application for all prior periods presented. The implementation of this standard resulted in debt issuance costs of $38 million and $37 million as of September 30, 2016 and December 31, 2015, respectively, being netted against long-term debt in our consolidated statement of condition. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair-Value Measurements: We carry trading account assets, AFS investment securities and various types of derivative financial instruments at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders' equity in our consolidated statement of condition. We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to valuation methods using significant unobservable inputs (level 3). If the inputs used to measure a financial asset or liability cross different levels of the hierarchy, categorization is based on the lowest-level input that is significant to the fair-value measurement. Management's assessment of the significance of a particular input to the overall fair-value measurement of a financial asset or liability requires judgment, and considers factors specific to that asset or liability. The three levels of the valuation hierarchy are described below. Level 1. Financial assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market. Our level 1 financial assets and liabilities primarily include positions in U.S. government securities and highly liquid U.S. and non-U.S. government fixed-income securities carried in trading account assets. We may carry U.S. government securities in our AFS portfolio in connection with our asset-and-liability management activities. Our level 1 financial assets also include active exchange-traded equity securities and non-cash collateral received from counterparties in connection with our enhanced custody business. Level 2. Financial assets and liabilities with values based on quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include the following: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in non-active markets; • Pricing models whose inputs are observable for substantially the full term of the asset or liability; and • Pricing models whose inputs are derived principally from, or corroborated by, observable market information through correlation or other means for substantially the full term of the asset or liability. Our level 2 financial assets and liabilities primarily include non-U.S. debt securities carried in trading account assets and various types of fixed-income investment securities available-for-sale, as well as various types of foreign exchange and interest-rate derivative instruments. Fair value for our investment securities available-for-sale categorized in level 2 is measured primarily using information obtained from independent third parties. This third-party information is subject to review by management as part of a validation process, which includes obtaining an understanding of the underlying assumptions and the level of market participant information used to support those assumptions. In addition, management compares significant assumptions used by third parties to available market information. Such information may include known trades or, to the extent that trading activity is limited, comparisons to market research information pertaining to credit expectations, execution prices and the timing of cash flows and, where information is available, back-testing. Derivative instruments categorized in level 2 predominantly represent foreign exchange contracts used in our trading activities, for which fair value is measured using discounted cash-flow techniques, with inputs consisting of observable spot and forward points, as well as observable interest-rate curves. With respect to derivative instruments, we evaluate the impact on valuation of the credit risk of our counterparties and our own credit risk. We consider factors such as the likelihood of default by us and our counterparties, our current and potential future net exposures and remaining maturities in determining the fair value. Valuation adjustments associated with derivative instruments were not material to those instruments for the years ended December 31, 2016 and 2015 . Level 3. Financial assets and liabilities with values based on prices or valuation techniques that require inputs that are both unobservable in the market and significant to the overall measurement of fair value. These inputs reflect management's judgment about the assumptions that a market participant would use in pricing the financial asset or liability, and are based on the best available information, some of which is internally developed. The following provides a more detailed discussion of our financial assets and liabilities that we may categorize in level 3 and the related valuation methodology. • The fair value of our investment securities categorized in level 3 is measured using information obtained from third-party sources, typically non-binding broker or dealer quotes, or through the use of internally-developed pricing models. Management has evaluated its methodologies used to measure fair value, but has considered the level of observable market information to be insufficient to categorize the securities in level 2. • The fair value of certain foreign exchange contracts, primarily options, is measured using an option-pricing model. Because of a limited number of observable transactions, certain model inputs are not observable, such as implied volatility surface, but are derived from observable market information. Our level 3 financial assets and liabilities are similar in structure and profile to our level 1 and level 2 financial instruments, but they trade in less liquid markets, and the measurement of their fair value is inherently more difficult. The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated. No transfers of financial assets or liabilities between levels 1 and 2 occurred during 2016 or 2015. Fair-Value Measurements on a Recurring Basis as of December 31, 2016 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 30 $ — $ — $ 30 Non-U.S. government securities 495 174 — 669 Other — 325 — 325 Total trading account assets 525 499 — 1,024 AFS Investment securities: U.S. Treasury and federal agencies: Direct obligations 3,824 439 — 4,263 Mortgage-backed securities — 13,257 — 13,257 Asset-backed securities: Student loans — 5,499 97 5,596 Credit cards — 1,351 — 1,351 Sub-prime — 272 — 272 Other (2) — — 905 905 Total asset-backed securities — 7,122 1,002 8,124 Non-U.S. debt securities: Mortgage-backed securities — 6,535 — 6,535 Asset-backed securities — 2,484 32 2,516 Government securities — 5,836 — 5,836 Other (3) — 5,365 248 5,613 Total non-U.S. debt securities — 20,220 280 20,500 State and political subdivisions — 10,283 39 10,322 Collateralized mortgage obligations — 2,577 16 2,593 Other U.S. debt securities — 2,469 — 2,469 U.S. equity securities — 42 — 42 Non-U.S. equity securities — 3 — 3 U.S. money-market mutual funds — 409 — 409 Non-U.S. money-market mutual funds — 16 — 16 Total investment securities available-for-sale 3,824 56,837 1,337 61,998 Other assets: Derivative instruments: Foreign exchange contracts — 16,476 8 $ (9,163 ) 7,321 Interest-rate contracts — 68 — (68 ) — Total derivative instruments — 16,544 8 (9,231 ) 7,321 Total assets carried at fair value $ 4,349 $ 73,880 $ 1,345 $ (9,231 ) $ 70,343 Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts $ — $ 15,948 $ 8 $ (10,456 ) $ 5,500 Interest-rate contracts — 348 — (226 ) 122 Other derivative contracts — 380 — — 380 Total derivative instruments — 16,676 8 (10,682 ) 6,002 Total liabilities carried at fair value $ — $ 16,676 $ 8 $ (10,682 ) $ 6,002 (1) R epresents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $906 million and $2,356 million , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2016 , the fair value of other asset-backed securities was primarily composed of $905 million of collateralized loan obligations. (3) As of December 31, 2016 , the fair value of other non-U.S. debt securities was primarily composed of $3,769 million of covered bonds and $988 million of corporate bonds. Fair-Value Measurements on a Recurring Basis as of December 31, 2015 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 32 $ — $ — $ 32 Non-U.S. government securities 479 — — 479 Other 10 328 — 338 Total trading account assets 521 328 — 849 AFS Investment securities: U.S. Treasury and federal agencies: Direct obligations 5,206 512 — 5,718 Mortgage-backed securities — 18,165 — 18,165 Asset-backed securities: Student loans — 6,987 189 7,176 Credit cards — 1,341 — 1,341 Sub-prime — 419 — 419 Other (2) — — 1,764 1,764 Total asset-backed securities — 8,747 1,953 10,700 Non-U.S. debt securities: Mortgage-backed securities — 7,071 — 7,071 Asset-backed securities — 3,093 174 3,267 Government securities — 4,355 — 4,355 Other (3) — 4,579 255 4,834 Total non-U.S. debt securities — 19,098 429 19,527 State and political subdivisions — 9,713 33 9,746 Collateralized mortgage obligations — 2,948 39 2,987 Other U.S. debt securities — 2,614 10 2,624 U.S. equity securities — 39 — 39 Non-U.S. equity securities — 3 — 3 U.S. money-market mutual funds — 542 — 542 Non-U.S. money-market mutual funds — 19 — 19 Total investment securities available-for-sale 5,206 62,400 2,464 70,070 Other assets: Derivatives instruments: Foreign exchange contracts — 11,311 5 $ (6,562 ) 4,754 Interest-rate contracts — 135 — (115 ) 20 Other derivative contracts — 5 — (2 ) 3 Total derivative instruments — 11,451 5 (6,679 ) 4,777 Other 2 — — — 2 Total assets carried at fair value $ 5,729 $ 74,179 $ 2,469 $ (6,679 ) $ 75,698 Liabilities: Accrued expenses and other liabilities: Trading account liabilities: U.S. government securities $ 5 $ — $ — $ — $ 5 Non-U.S. government securities 76 — — — 76 Other 5 13 — — 18 Derivative instruments: Foreign exchange contracts — 10,863 5 (6,995 ) 3,873 Interest-rate contracts — 182 — (24 ) 158 Other derivative contracts — 103 — (2 ) 101 Total derivative instruments — 11,148 5 (7,021 ) 4,132 Other 2 — — — 2 Total liabilities carried at fair value $ 88 $ 11,161 $ 5 $ (7,021 ) $ 4,233 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $776 million and $1.12 billion , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2015 , the fair value of other asset-backed securities was primarily composed of $1,764 million of collateralized loan obligations. (3) As of December 31, 2015 , the fair value of other non-U.S. debt securities was primarily composed of $3,184 million of covered bonds and $613 million of corporate bonds. The following tables present activity related to our level 3 financial assets during the years ended December 31, 2016 and 2015 , respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the years ended December 31, 2016 and 2015 , transfers out of level 3 were mainly related to certain mortgage- and asset-backed securities, including non-U.S. debt securities, for which fair value was measured using prices for which observable market information became available. Fair Value Measurements Using Significant Unobservable Inputs Year Ended December 31, 2016 Fair Value as of Total Realized and Purchases Sales Settlements Transfers out of Level 3 Fair Value as of December 31, 2016 (2) Change in (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: U.S. Treasury and federal agencies, mortgage-backed securities $ — $ — $ — $ 325 $ — $ — $ (325 ) $ — Asset-backed securities: Student loans 189 1 3 — — — (96 ) 97 Other 1,764 31 (23 ) 469 (82 ) (1,254 ) — 905 Total asset-backed securities 1,953 32 (20 ) 469 (82 ) (1,254 ) (96 ) 1,002 Non-U.S. debt securities: Mortgage-backed securities — — — 90 — — (90 ) — Asset-backed securities 174 — — 196 — (60 ) (278 ) 32 Other 255 — — 222 — (7 ) (222 ) 248 Total Non-U.S. debt securities 429 — — 508 — (67 ) (590 ) 280 State and political subdivisions 33 — 9 — — (3 ) — 39 Collateralized mortgage obligations 39 — 2 89 (66 ) (27 ) (21 ) 16 Other U.S. debt securities 10 — — — — (10 ) — — Total AFS investment securities 2,464 32 (9 ) 1,391 (148 ) (1,361 ) (1,032 ) 1,337 Other assets: Derivative instruments: Foreign exchange contracts 5 9 — 3 — (9 ) — 8 $ 5 Total derivative instruments 5 9 — 3 — (9 ) — 8 5 Total assets carried at fair value $ 2,469 $ 41 $ (9 ) $ 1,394 $ (148 ) $ (1,370 ) $ (1,032 ) $ 1,345 $ 5 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. (2) There were no transfers of assets into level 3 during the year ended December 31, 2016 . Fair-Value Measurements Using Significant Unobservable Inputs Year Ended December 31, 2015 Fair Value as of December 31, Total Realized and Purchases Sales Settlements Transfers Transfers Fair Value as of Change in (In millions) Recorded (1) Recorded (1) Assets: Investment securities available-for-sale: Asset-backed securities: Student loans $ 259 $ 1 $ (4 ) $ — $ — $ (6 ) $ — $ (61 ) $ 189 Other 3,780 53 (50 ) — (1,105 ) (914 ) — — 1,764 Total asset-backed securities 4,039 54 (54 ) — (1,105 ) (920 ) — (61 ) 1,953 Non-U.S. debt securities: Mortgage-backed securities — — — 43 — — 97 (140 ) — Asset-backed securities 295 2 (1 ) 249 — (190 ) 4 (185 ) 174 Other 371 — (1 ) 111 — (39 ) — (187 ) 255 Total non-U.S. debt securities 666 2 (2 ) 403 — (229 ) 101 (512 ) 429 State and political subdivisions 38 1 (3 ) — — (3 ) — — 33 Collateralized mortgage obligations 614 (1 ) (2 ) 294 (88 ) (105 ) — (673 ) 39 Other U.S. debt securities 9 — — — — — 10 (9 ) 10 Total AFS investment securities 5,366 56 (61 ) 697 (1,193 ) (1,257 ) 111 (1,255 ) 2,464 Other assets: Derivative instruments: Foreign exchange contracts 81 48 — 9 — (133 ) — — 5 $ (4 ) Total derivative instruments 81 48 — 9 — (133 ) — — 5 (4 ) Total assets carried at fair value $ 5,447 $ 104 $ (61 ) $ 706 $ (1,193 ) $ (1,390 ) $ 111 $ (1,255 ) $ 2,469 $ (4 ) (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair-Value Measurements Fair Value Weighted-Average (Dollars in millions) As of December 31, 2016 As of December 31, 2015 Valuation Technique Significant (1) As of December 31, 2016 As of December 31, 2015 Significant unobservable inputs readily available to State Street: Assets: Asset-backed securities, other $ 1 $ 28 Discounted cash flows Credit spread 0.3 % (0.1 )% State and political subdivisions 39 33 Discounted cash flows Credit spread 1.8 2.2 Derivative instruments, foreign exchange contracts 8 5 Option model Volatility 14.4 9.3 Total $ 48 $ 66 Liabilities: Derivative instruments, foreign exchange contracts $ 8 $ 5 Option model Volatility 14.4 9.2 Total $ 8 $ 5 (1) Significant chan ges in these unobservable inputs would result in significant changes in fair value measurement. Fair Value Estimates: Estimates of fair value for financial instruments not carried at fair value on a recurring basis in our consolidated statement of condition are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. Disclosure of fair-value estimates is not required by U.S. GAAP for certain items, such as lease financing, equity-method investments, obligations for pension and other post-retirement plans, premises and equipment, other intangible assets and income-tax assets and liabilities. Accordingly, aggregate fair-value estimates presented do not purport to represent, and should not be considered representative of, our underlying “market” or franchise value. In addition, because of potential differences in methodologies and assumptions used to estimate fair values, our estimates of fair value should not be compared to those of other financial institutions. We use the following methods to estimate the fair values of our financial instruments: • For financial instruments that have quoted market prices, those quoted prices are used to estimate fair value. • For financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, we assume that the fair value of these instruments approximates their reported value, after taking into consideration any applicable credit risk. • For financial instruments for which no quoted market prices are available, fair value is estimated using information obtained from independent third parties, or by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. The generally short duration of certain of our assets and liabilities results in a significant number of financial instruments for which fair value equals or closely approximates the amount recorded in our consolidated statement of condition. These financial instruments are reported in the following captions in our consolidated statement of condition: cash and due from banks; interest-bearing deposits with banks; securities purchased under resale agreements; accrued interest and fees receivable; deposits; securities sold under repurchase agreements; federal funds purchased; and other short-term borrowings. In addition, due to the relatively short duration of certain of our loans, we consider fair value for these loans to approximate their reported value. The fair value of other types of loans, such as senior secured bank loans, commercial real estate loans, purchased receivables and municipal loans is estimated using information obtained from independent third parties or by discounting expected future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings for the same remaining maturities. Commitments to lend have no reported value because their terms are at prevailing market rates. The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair-value hierarchy, as of the dates indicated. Fair-Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) December 31, 2016 Financial Assets: Cash and due from banks $ 1,314 $ 1,314 $ 1,314 $ — $ — Interest-bearing deposits with banks 70,935 70,935 — 70,935 — Securities purchased under resale agreements 1,956 1,956 — 1,956 — Investment securities held-to-maturity 35,169 34,994 17,400 17,439 155 Net loans (excluding leases) 18,862 18,877 — 18,781 96 Financial Liabilities: Deposits: Non-interest-bearing $ 59,397 $ 59,397 $ — $ 59,397 $ — Interest-bearing - U.S. 30,911 30,911 — 30,911 — Interest-bearing - non-U.S. 96,855 96,855 — 96,855 — Securities sold under repurchase agreements 4,400 4,400 — 4,400 — Other short-term borrowings 1,585 1,585 — 1,585 — Long-term debt 11,430 11,618 — 11,282 336 Fair-Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) December 31, 2015 Financial Assets: Cash and due from banks $ 1,207 $ 1,207 $ 1,207 $ — $ — Interest-bearing deposits with banks 75,338 75,338 — 75,338 — Securities purchased under resale agreements 3,404 3,404 — 3,404 — Investment securities held-to-maturity 29,952 29,798 — 29,798 — Net loans (excluding leases) (1) 17,838 17,792 — 17,667 125 Financial Liabilities: Deposits: Non-interest-bearing $ 65,800 $ 65,800 $ — $ 65,800 $ — Interest-bearing - U.S. 29,958 29,958 — 29,958 — Interest-bearing - non-U.S. 95,869 95,869 — 95,869 — Securities sold under repurchase agreements 4,499 4,499 — 4,499 — Other short-term borrowings 1,754 1,754 — 1,754 — Long-term debt 11,497 11,604 — 11,215 389 (1) Includes $14 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of December 31, 2015 . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Investment securities held by us are classified as either trading, AFS , or HTM at the time of purchase and reassessed periodically, based on management’s intent. Generally, trading assets are debt and equity securities purchased in connection with our trading activities and, as such, are expected to be sold in the near term. Our trading activities typically involve active and frequent buying and selling with the objective of generating profits on short-term movements. AFS investment securities are those securities that we intend to hold for an indefinite period of time. AFS investment securities include securities utilized as part of our asset-and-liability management activities that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. HTM securities are debt securities that management has the intent and the ability to hold to maturity. Trading assets are carried at fair value. Both realized and unrealized gains and losses on trading assets are recorded in trading services revenue in our consolidated statement of income. Debt and marketable equity securities classified as AFS are carried at fair value, and after-tax net unrealized gains and losses are recorded in AOCI. Gains or losses realized on sales of AFS investment securities are computed using the specific identification method and are recorded in gains (losses) related to investment securities, net, in our consolidated statement of income. HTM investment securities are carried at cost, adjusted for amortization of premiums and accretion of discounts. The following table presents the amortized cost and fair value, and associated unrealized gains and losses, of investment securities as of the dates indicated: December 31, 2016 December 31, 2015 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value (In millions) Gains Losses Gains Losses Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 4,265 $ 7 $ 9 $ 4,263 $ 5,717 $ 6 $ 5 $ 5,718 Mortgage-backed securities 13,340 76 159 13,257 18,168 131 134 18,165 Asset-backed securities: Student loans (1) 5,659 12 75 5,596 7,358 16 198 7,176 Credit cards 1,377 — 26 1,351 1,378 — 37 1,341 Sub-prime 289 1 18 272 448 2 31 419 Other (2) 895 10 — 905 1,724 43 3 1,764 Total asset-backed securities 8,220 23 119 8,124 10,908 61 269 10,700 Non-U.S. debt securities: Mortgage-backed securities 6,506 35 6 6,535 7,010 72 11 7,071 Asset-backed securities 2,513 4 1 2,516 3,272 2 7 3,267 Government securities 5,834 8 6 5,836 4,348 7 — 4,355 Other (3) 5,587 31 5 5,613 4,817 29 12 4,834 Total non-U.S. debt securities 20,440 78 18 20,500 19,447 110 30 19,527 State and political subdivisions 10,233 201 112 10,322 9,402 371 27 9,746 Collateralized mortgage obligations 2,610 18 35 2,593 2,993 16 22 2,987 Other U.S. debt securities 2,481 18 30 2,469 2,611 31 18 2,624 U.S. equity securities 39 6 3 42 33 9 3 39 Non-U.S. equity securities 3 — — 3 3 — — 3 U.S. money-market mutual funds 409 — — 409 542 — — 542 Non-U.S. money-market mutual funds 16 — — 16 19 — — 19 Total $ 62,056 $ 427 $ 485 $ 61,998 $ 69,843 $ 735 $ 508 $ 70,070 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 17,527 $ 17 $ 58 $ 17,486 $ 20,878 $ 2 $ 217 $ 20,663 Mortgage-backed securities 10,334 20 221 10,133 610 2 8 604 Asset-backed securities: Student loans (1) 2,883 5 30 2,858 1,592 — 47 1,545 Credit cards 897 2 — 899 897 — 1 896 Other 35 — — 35 366 2 1 367 Total asset-backed securities 3,815 7 30 3,792 2,855 2 49 2,808 Non-U.S. debt securities: Mortgage-backed securities 1,150 70 15 1,205 2,202 109 26 2,285 Asset-backed securities 531 — — 531 1,415 4 3 1,416 Government securities 286 3 — 289 239 — 1 238 Other 113 1 — 114 65 — — 65 Total non-U.S. debt securities 2,080 74 15 2,139 3,921 113 30 4,004 State and political subdivisions — — — — 1 — — 1 Collateralized mortgage obligations 1,413 42 11 1,444 1,687 60 29 1,718 Total $ 35,169 $ 160 $ 335 $ 34,994 $ 29,952 $ 179 $ 333 $ 29,798 (1) Primarily composed of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans. (2) As of December 31, 2016 and December 31, 2015 , the fair value of other ABS was primarily composed of $905 million and $1,764 million , respectively, of collateralized loan obligations. (3) As of December 31, 2016 and December 31, 2015 , the fair value of other non-U.S. debt securities was primarily composed of $3,769 million and $3,184 million , respectively, of covered bonds and $988 million and $613 million , as of December 31, 2016 and December 31, 2015 , respectively, of corporate bonds. Aggregate investment securities with carrying values of approximately $46 billion and $41 billion as of December 31, 2016 and 2015 , respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law. In the fourth quarter of 2016 , $4.9 billion of Agency MBS and Student Loan ABS previously classified as AFS were transferred to HTM and in the fourth quarter of 2015 , $7.1 billion , of U.S. Treasuries previously classified as AFS were transferred to HTM. Both transfers reflect our intent to hold these securities until their maturity. These securities were transferred at fair value, which included a net unrealized gain of $87 million and $89 million as of December 31, 2016 and 2015 , respectively, within accumulated other comprehensive loss which will be accreted into interest income over the remaining life of the transferred security (ranging from approximately 7 to 49 years). The following tables present the aggregate fair values of investment securities that have been in a continuous unrealized loss position for less than 12 months , and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated: Less than 12 months 12 months or longer Total December 31, 2016 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 651 $ 8 $ 180 $ 1 $ 831 $ 9 Mortgage-backed securities 7,072 131 1,114 28 8,186 159 Asset-backed securities: Student loans 54 — 3,745 75 3,799 75 Credit cards 795 1 494 25 1,289 26 Sub-prime 1 — 252 18 253 18 Other 75 — — — 75 — Total asset-backed securities 925 1 4,491 118 5,416 119 Non-U.S. debt securities: Mortgage-backed securities 442 1 893 5 1,335 6 Asset-backed securities 253 — 276 1 529 1 Government securities 1,314 6 — — 1,314 6 Other 670 4 218 1 888 5 Total non-U.S. debt securities 2,679 11 1,387 7 4,066 18 State and political subdivisions 3,390 102 304 10 3,694 112 Collateralized mortgage obligations 1,259 31 162 4 1,421 35 Other U.S. debt securities 944 24 157 6 1,101 30 U.S. equity securities 8 — 5 3 13 3 Total $ 16,928 $ 308 $ 7,800 $ 177 $ 24,728 $ 485 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 8,891 $ 57 $ 86 $ 1 $ 8,977 $ 58 Mortgage-backed securities 6,838 221 — — 6,838 221 Asset-backed securities: Student loans 705 9 1,235 21 1,940 30 Credit cards 33 — — — 33 — Other 18 — 9 — 27 — Total asset-backed securities 756 9 1,244 21 2,000 30 Non-U.S. mortgage-backed securities: Mortgage-backed securities 54 2 330 13 384 15 Asset-backed securities 28 — 35 — 63 — Government securities 180 — — — 180 — Total non-U.S. debt securities 262 2 365 13 627 15 Collateralized mortgage obligations 537 4 204 7 741 11 Total $ 17,284 $ 293 $ 1,899 $ 42 $ 19,183 $ 335 Less than 12 months 12 months or longer Total December 31, 2015 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 3,123 $ 4 $ 121 $ 1 $ 3,244 $ 5 Mortgage-backed securities 5,729 48 3,166 86 8,895 134 Asset-backed securities: Student loans 2,841 54 3,217 144 6,058 198 Credit cards 838 7 490 30 1,328 37 Sub-prime 7 — 387 31 394 31 Other 720 3 43 — 763 3 Total asset-backed securities 4,406 64 4,137 205 8,543 269 Non-U.S. debt securities: Mortgage-backed securities 1,457 7 437 4 1,894 11 Asset-backed securities 2,190 7 22 — 2,212 7 Government securities 1,691 — — — 1,691 — Other 1,548 5 527 7 2,075 12 Total non-U.S. debt securities 6,886 19 986 11 7,872 30 State and political subdivisions 206 1 658 26 864 27 Collateralized mortgage obligations 1,511 14 217 8 1,728 22 Other U.S. debt securities 475 9 178 9 653 18 U.S. equity securities — — 5 3 5 3 Total $ 22,336 $ 159 $ 9,468 $ 349 $ 31,804 $ 508 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 16,370 $ 120 $ 3,005 $ 97 $ 19,375 $ 217 Mortgage-backed securities 560 8 — — 560 8 Asset-backed securities: Student loans 896 25 615 22 1,511 47 Credit cards 636 1 — — 636 1 Other 102 — 31 1 133 1 Total asset-backed securities 1,634 26 646 23 2,280 49 Non-U.S. debt securities: Mortgage-backed securities 338 2 524 24 862 26 Asset-backed securities 1,015 3 69 — 1,084 3 Government securities 128 1 — — 128 1 Other — — 43 — 43 — Total non-U.S. debt securities 1,481 6 636 24 2,117 30 Collateralized mortgage obligations 634 9 537 20 1,171 29 Total $ 20,679 $ 169 $ 4,824 $ 164 $ 25,503 $ 333 The following table presents contractual maturities of debt investment securities by carrying amount as of December 31, 2016 . The maturities of certain asset-backed securities, mortgage-backed securities, and collateralized mortgage obligations are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties. December 31, 2016 Under 1 Year 1 to 5 Years 6 to 10 Years Over 10 Years Total (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 2,722 $ 1,114 $ 44 $ 383 $ 4,263 Mortgage-backed securities 213 1,533 3,022 8,489 13,257 Asset-backed securities: Student loans 590 3,181 757 1,068 5,596 Credit cards 4 1,052 295 — 1,351 Sub-prime 3 1 2 266 272 Other 1 21 883 — 905 Total asset-backed securities 598 4,255 1,937 1,334 8,124 Non-U.S. debt securities: Mortgage-backed securities 1,301 3,339 731 1,164 6,535 Asset-backed securities 289 1,877 346 4 2,516 Government securities 4,372 987 477 — 5,836 Other 1,901 3,304 408 — 5,613 Total non-U.S. debt securities 7,863 9,507 1,962 1,168 20,500 State and political subdivisions 509 2,347 5,548 1,918 10,322 Collateralized mortgage obligations 2 44 871 1,676 2,593 Other U.S. debt securities 508 1,003 922 36 2,469 Total $ 12,415 $ 19,803 $ 14,306 $ 15,004 $ 61,528 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 400 $ 14,888 $ 2,167 $ 72 $ 17,527 Mortgage-backed securities — 193 1,536 8,605 10,334 Asset-backed securities: Student loans 442 201 349 1,891 2,883 Credit cards 99 798 — — 897 Other 7 18 8 2 35 Total asset-backed securities 548 1,017 357 1,893 3,815 Non-U.S. debt securities: Mortgage-backed securities 148 339 47 616 1,150 Asset-backed securities 163 368 — — 531 Government securities 180 106 — — 286 Other 71 42 — — 113 Total non-U.S. debt securities 562 855 47 616 2,080 Collateralized mortgage obligations 102 23 488 800 1,413 Total $ 1,612 $ 16,976 $ 4,595 $ 11,986 $ 35,169 The following tables present gross realized gains and losses from sales of AFS investment securities, and the components of net impairment losses included in net gains and losses related to investment securities for the periods indicated. Years Ended December 31, (In millions) 2016 2015 2014 Gross realized gains from sales of AFS investment securities $ 15 $ 57 $ 64 Gross realized losses from sales of AFS investment securities (5 ) (62 ) (49 ) Net impairment losses Gross losses from OTTI (2 ) (1 ) (1 ) Losses reclassified (from) to other comprehensive income (1 ) — (10 ) Net impairment losses (1) (3 ) (1 ) (11 ) Gains (losses) related to investment securities, net $ 7 $ (6 ) $ 4 (1) Net impairment losses, recognized in our consolidated statement of income, were composed of the following: Impairment associated with expected credit losses $ (1 ) $ — $ (10 ) Impairment associated with adverse changes in timing of expected future cash flows (2 ) (1 ) (1 ) Net impairment losses $ (3 ) $ (1 ) $ (11 ) The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated. Years Ended December 31, (In millions) 2016 2015 2014 Balance, beginning of period $ 92 $ 115 $ 122 Additions: Losses for which OTTI was previously recognized 2 1 11 Deductions: Previously recognized losses related to securities sold or matured (28 ) (24 ) (12 ) Losses related to securities intended or required to be sold — — (6 ) Balance, end of period $ 66 $ 92 $ 115 Interest revenue related to debt securities is recognized in our consolidated statement of income using the effective interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any non-refundable fees or costs, as well as purchase premiums or discounts, resulting in amortization or accretion, accordingly. For debt securities acquired for which we consider it probable as of the date of acquisition that we will be unable to collect all contractually required principal, interest and other payments, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest revenue on a level-yield basis over the securities’ estimated remaining terms. Subsequent decreases in these securities’ expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for other-than-temporary impairment. Increases in expected future cash flows are recognized prospectively over the securities’ estimated remaining terms through the recalculation of their yields. For certain debt securities acquired which are considered to be beneficial interests in securitized financial assets, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest revenue on a level-yield basis over the securities’ estimated remaining terms. Subsequent decreases in these securities’ expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for other-than-temporary impairment. Increases in expected future cash flows are recognized prospectively over the securities’ estimated remaining terms through the recalculation of their yields. Impairment: We conduct periodic reviews of individual securities to assess whether OTTI exists. Impairment exists when the current fair value of an individual security is below its amortized cost basis. When the decline in the security's fair value is deemed to be other than temporary, the loss is recorded in our consolidated statement of income. In addition, for AFS and HTM debt securities, impairment is recorded in our consolidated statement of income when management intends to sell (or may be required to sell) the securities before they recover in value, or when management expects the present value of cash flows expected to be collected from the securities to be less than the amortized cost of the impaired security (a credit loss). Our review of impaired securities generally includes: • the identification and evaluation of securities that have indications of potential OTTI, such as issuer-specific concerns, including deteriorating financial condition or bankruptcy; • the analysis of expected future cash flows of securities, based on quantitative and qualitative factors; • the analysis of the collectability of those future cash flows, including information about past events, current conditions, and reasonable and supportable forecasts; • the analysis of the underlying collateral for mortgage- and asset-backed securities; • the analysis of individual impaired securities, including consideration of the length of time the security has been in an unrealized loss position, the anticipated recovery period, and the magnitude of the overall price decline; • evaluation of factors or triggers that could cause individual securities to be deemed OTTI and those that would not support OTTI; and • documentation of the results of these analyses. Factors considered in determining whether impairment is other than temporary include: • certain macroeconomic drivers; • certain industry-specific drivers; • the length of time the security has been impaired; • the severity of the impairment; • the cause of the impairment and the financial condition and near-term prospects of the issuer; • activity in the market with respect to the issuer's securities, which may indicate adverse credit conditions; and • our intention not to sell, and the likelihood that we will not be required to sell, the security for a period of time sufficient to allow for its recovery in value. Substantially all of our investment securities portfolio is composed of debt securities. A critical component of our assessment of OTTI of these debt securities is the identification of credit-impaired securities for which management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. Debt securities that are not deemed to be credit-impaired are subject to additional management analysis to assess whether management intends to sell, or, more likely than not, would be required to sell, the security before the expected recovery of its amortized cost basis. The following provides a description of our process for the identification and assessment of OTTI, as well as information about OTTI recorded in 2016 , 2015 and 2014 and changes in period-end unrealized losses, for major security types as of December 31, 2016 . U.S. Agency Securities Our portfolio of U.S. agency direct obligations and mortgage-backed securities receives the implicit or explicit backing of the U.S. government in conjunction with specified financial support of the U.S. Treasury. We recorded no OTTI on these securities in 2016 , 2015 or 2014 . The overall increase in the unrealized losses on these securities as of December 31, 2016 was primarily attributable to interest rate increases in 2016 . Asset-Backed Securities - Student Loans Asset-backed securities collateralized by student loans are primarily composed of securities collateralized by FFELP loans. FFELP loans benefit from a federal government guarantee of at least 97% of defaulted principal and accrued interest, with additional credit support provided in the form of over-collateralization, subordination and excess spread, which collectively total in excess of 100% . Accordingly, the vast majority of FFELP loan-backed securities are protected from traditional consumer credit risk. We recorded no OTTI on these securities in 2016 , 2015 or 2014 . The gross unrealized losses in our FFELP loan-backed securities portfolio as of December 31, 2016 were primarily attributable to the widening FFELP spreads during the year as some rating agencies are reviewing the FFELP market for bonds with cash flows that might extend past their legal final maturities. Our assessment of OTTI of these securities considers, among many other factors, the strength of the U.S. government guarantee, the performance of the underlying collateral, and the remaining average term of the FFELP loan-backed securities portfolio, which was approximately 4.1 years as of December 31, 2016 . In the fourth quarter of 2016, Moody’s and Fitch downgraded approximately $1.7 billion of FFELP loan-backed securities in our portfolio due to potential extension of student loan repayments beyond the securities’ legal final maturity dates. Approximately $2.2 billion of our FFELP loan-backed portfolio are on credit watch negative by Fitch. Based on the limited price impact on the overall FFELP loan-backed securities portfolio and recent remedial actions by issuers, including amending loan-backed securities maturity dates and exercising cleanup calls, the credit quality of the FFELP loan-backed securities portfolio remains stable and we, as a bondholder, remain protected from principal loss as a result of the aforementioned federal government guarantee and over-collateralization. Downside risks remain should remedial actions fail to address the extension risks. Our total exposure to private student loan-backed securities was less than $200 million as of December 31, 2016 . Our assessment of OTTI of private student loan-backed securities considers, among other factors, the impact of high unemployment rates on the collateral performance of private student loans. We recorded no OTTI on these securities in 2016 , 2015 or 2014 . Non-U.S. Mortgage- and Asset-Backed Securities Non-U.S. mortgage- and asset-backed securities are primarily composed of U.K., Australian and Dutch securities collateralized by residential mortgages and German securities collateralized by automobile loans and leases. Our assessment of impairment with respect to these securities considers the location of the underlying collateral, collateral enhancement and structural features, expected credit losses under base-case and stressed conditions and the macroeconomic outlook for the country in which the collateral is located, including housing prices and unemployment. Where appropriate, any potential loss after consideration of the above-referenced factors is further evaluated to determine whether any OTTI exists. We recorded OTTI of $2 million , $1 million , and $1 million in 2016 , 2015 and 2014 , respectively, on non-U.S. residential mortgage-backed securities in our consolidated statement of income associated with adverse changes in the timing of expected future cash flows from the securities. Our assessment of OTTI of these securities takes into account government intervention in the corresponding mortgage markets and assumes a conservative baseline macroeconomic environment for this region, factoring in slower economic growth and continued government austerity measures. Our baseline view assumes a recessionary period characterized by high unemployment and by additional housing price declines of between 3% and 23% across these four countries. Our evaluation of OTTI in our base case does not assume a disorderly sovereign-debt restructuring or a break-up of the Eurozone. In addition, we perform stress testing and sensitivity analysis in order to understand the impact of more severe assumptions on potential OTTI. State and Political Subdivisions and Other U.S. Debt Securities Our municipal securities portfolio primarily includes securities issued by U.S. states and their municipalities. A portion of this portfolio is held in connection with our tax-exempt investment program, more fully described in Note 14 . Our portfolio of other U.S. debt securities is primarily composed of securities issued by U.S. corporations. Our assessment of OTTI of these portfolios considers, among other factors, adverse conditions specifically related to the industry, geographic area or financial condition of the issuer; the structure of the security, including collateral, if any, and payment schedule; rating agency changes to the security's credit rating; the volatility of the fair value changes; and our intent and ability to hold the security until its recovery in value. If the impairment of the security is credit-related, we estimate the future cash flows from the security, tailored to the security and considering the above-described factors, and any resulting impairment deemed to be other-than-temporary is recorded in our consolidated statement of income. We recorded no OTTI on these securities in 2016 , 2015 or 2014 . The decline in the unrealized losses on these securities as of December 31, 2016 was primarily attributable to the narrowing of spreads and U.S. Treasury rates in 2016 . U.S. Non-Agency Residential Mortgage-Backed Securities We assess OTTI of our portfolio of U.S. non-agency residential mortgage-backed securities using cash flow models, tailored for each security, that estimate the future cash flows from the underlying mortgages, using the security-specific collateral and transaction structure. Estimates of future cash flows are subject to management judgment. The future cash flows and performance of our portfolio of U.S. non-agency residential mortgage-backed securities are a function of a number of factors, including, but not limited to, the condition of the U.S. economy, the condition of the U.S. residential mortgage markets, and the level of loan defaults, prepayments and loss severities. Management's estimates of future losses for each security also consider the underwriting and historical performance of each specific security, the underlying collateral type, vintage, borrower profile, third-party guarantees, current levels of subordination, geography and other factors. We recorded no OTTI on these securities in 2016 , 2015 or 2014 . U.S. Non-Agency Commercial Mortgage-Backed Securities With respect to our portfolio of U.S. non-agency commercial mortgage-backed securities, OTTI is assessed by considering a number of factors, including, but not limited to, the condition of the U.S. economy and the condition of the U.S. commercial real estate market, as well as capitalization rates. Management estimates of future losses for each security also consider the underlying collateral type, property location, vintage, debt-service coverage ratios, expected property income, servicer advances and estimated property values, as well as current levels of subordination. In 2016 , we recorded $1 million of OTTI on these securities, all associated with expected credit losses. We recorded no OTTI on these securities 2015 . In 2014 , we recorded $10 million of OTTI on these securities, all associated with expected credit losses. The estimates, assumptions and other risk factors utilized in our assessment of impairment as described above are used by management to identify securities which are subject to further analysis of potential credit losses. Additional analyses are performed using more stressful assumptions to further evaluate the sensitivity of losses relative to the above-described factors. However, since the assumptions are based on the unique characteristics of each security, management uses a range of estimates for prepayment speeds, default, and loss severity forecasts that reflect the collateral profile of the securities within each asset class. In addition, in measuring expected credit losses, the individual characteristics of each security are examined to determine whether any additional factors would increase or mitigate the expected loss. Once losses are determined, the timing of the loss will also affect the ultimate OTTI, since the loss is ultimately subject to a discount commensurate with the purchase yield of the security. After a review of the investment portfolio, taking into consideration current economic conditions, adverse situations that might affect our ability to fully collect principal and interest, the timing of future payments, the credit quality and performance of the collateral underlying mortgage- and asset-backed securities and other relevant factors, and excluding OTTI recorded in 2016 , management considers the aggregate decline in fair value of the investment securities portfolio and the resulting gross pre-tax unrealized losses of $820 million related to 1,727 securities as of December 31, 2016 to be temporary, and not the result of any material changes in the credit characteristics of the securities. |
Loans and Leases
Loans and Leases | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Leases | Loans and Leases Loans are generally recorded at their principal amount outstanding, net of the allowance for loan losses, unearned income, and any net unamortized deferred loan origination fees. Acquired loans have been initially recorded at fair value based on management's expectation with respect to future principal and interest collection as of the date of acquisition. Acquired loans are held for investment, and as such their initial fair value is not adjusted subsequent to acquisition. Loans that are classified as held-for-sale are measured at lower of cost or fair value on an individual basis. Interest revenue related to loans is recognized in our consolidated statement of income using the interest method, or on a basis approximating a level rate of return over the term of the loan. Fees received for providing loan commitments and letters of credit that we anticipate will result in loans typically are deferred and amortized to interest revenue over the term of the related loan, beginning with the initial borrowing. Fees on commitments and letters of credit are amortized to processing fees and other revenue over the commitment period when funding is not known or expected. Leveraged-lease investments are reported at the aggregate of lease payments receivable and estimated residual values, net of non-recourse debt and unearned income. Lease residual values are reviewed regularly for other-than-temporary impairment, with valuation adjustments recorded against processing fees and other revenue. Unearned income is recognized to yield a level rate of return on the net investment in the leases. Gains and losses on residual values of leased equipment sold are recorded in processing fees and other revenue. The following table presents our recorded investment in loans and leases, by segment, as of the dates indicated: (In millions) December 31, 2016 December 31, 2015 Domestic: Commercial and financial: Loans to investment funds $ 11,734 $ 11,915 Senior secured bank loans 3,256 2,929 Loans to municipalities 1,352 962 Other 70 93 Commercial real estate 27 28 Lease financing 338 337 Total domestic 16,777 16,264 Non-U.S.: Commercial and financial: Loans to investment funds 2,224 1,752 Senior secured bank loans 252 205 Lease financing 504 578 Total non-U.S. 2,980 2,535 Total loans and leases 19,757 18,799 Allowance for loan and lease losses (53 ) (46 ) Loans and leases, net of allowance $ 19,704 $ 18,753 We segregate our loans and leases into three segments: commercial and financial loans, commercial real estate loans, and lease financing. We further classify commercial and financial loans as loans to investment funds, senior secured bank loans, loans to municipalities, and other. These classifications reflect their risk characteristics, their initial measurement attributes and the methods we use to monitor and assess credit risk. The commercial and financial segment is composed of primarily floating-rate loans to mutual fund clients, purchased senior secured bank loans, and loans to municipalities. Investment fund lending is composed of short-duration revolving credit lines providing liquidity to fund clients in support of their transaction flows associated with securities' settlement activities. Certain loans are pledged as collateral for access to the Federal Reserve's discount window. As of December 31, 2016 and December 31, 2015 , the loans pledged as collateral totaled $1.5 billion and $2.5 billion , respectively. The lease financing segment includes our investment in leveraged lease financing. The components of our net investment in leveraged lease financing, included in the lease financing segment in the preceding table, were as follows as of December 31: (In millions) 2016 2015 Net rental income receivable $ 1,039 $ 1,159 Estimated residual values 89 89 Unearned income (286 ) (333 ) Investment in leveraged lease financing 842 915 Less: related deferred income tax liabilities (313 ) (334 ) Net investment in leveraged lease financing $ 529 $ 581 The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated: December 31, 2016 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 14,889 $ 27 $ 842 $ 15,758 Speculative (2) 3,984 — — 3,984 Substandard (4) 15 — — 15 Total $ 18,888 $ 27 $ 842 $ 19,757 December 31, 2015 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 14,288 $ 28 $ 888 $ 15,204 Speculative (2) 3,537 — 27 3,564 Special mention (3) 31 — — 31 Total $ 17,856 $ 28 $ 915 $ 18,799 (1) Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment. (2) Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met. (3) Special mention loans and leases consist of counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects. (4) Substandard loans and leases consist of counterparties with well-defined weakness that jeopardizes repayment with the possibility we will sustain some loss. We use an internal risk-rating system to assess our risk of credit loss for each loan or lease. This risk-rating process incorporates the use of risk-rating tools in conjunction with management judgment. Qualitative and quantitative inputs are captured in a systematic manner, and following a formal review and approval process, an internal credit rating based on our credit scale is assigned. In assessing the risk rating assigned to each individual loan or lease, among the factors considered are the borrower's debt capacity, collateral coverage, payment history and delinquency experience, financial flexibility and earnings strength, the expected amounts and source of repayment, the level and nature of contingencies, if any, and the industry and geography in which the borrower operates. These factors are based on an evaluation of historical and current information, and involve subjective assessment and interpretation. Credit counterparties are evaluated and risk-rated on an individual basis at least annually. Management considers the ratings to be current as of December 31, 2016 . The following table presents our recorded investment in loans and leases, disaggregated based on our impairment methodology, as of the dates indicated: December 31, 2016 December 31, 2015 (In millions) Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases Loans and leases (1) : Individually evaluated for impairment $ 15 $ — $ — $ 15 $ — $ — $ — $ — Collectively evaluated for impairment 18,873 27 842 19,742 17,856 28 915 18,799 Total $ 18,888 $ 27 $ 842 $ 19,757 $ 17,856 $ 28 $ 915 $ 18,799 (1) For those portfolios where there are a small number of loans each with a large balance, we review each loan annually for indicators of impairment. For those loans where no such indicators are identified, the loans are collectively evaluated for impairment. As of December 31, 2016 , $195 thousand of the allowance for loan and lease loss related to commercial and financial loans individually evaluated for impairment, and the remainder of the allowance related to commercial and financial loans collectively evaluated for impairment. As of December 31, 2015 , all of the allowance for loan and lease loss related to commercial and financial loans collectively evaluated for impairment. The following table presents information related to our recorded investment in impaired loans and leases for the dates or periods indicated. As of December 31, 2015 , we had no impaired loans and leases. As of December 31, 2016 Year Ended December 31, 2016 (In millions) Recorded Investment Unpaid Principal Balance (1) Related Allowance (2) Average Recorded Investment Interest Revenue Recognized Commercial and financial (1) $ 15 $ 15 $ — $ 15 $ — Total $ 15 $ 15 $ — $ 15 $ — (1) As of December 31, 2016, the related allowance for loan loss was approximately $195 thousand . This relates to one loan, which was on non-accrual status. (2) As of December 31, 2016 and December 31, 2015 , with exception of the aforementioned specific allowance, all of the allowance for loan and lease losses of $53 million and $46 million , respectively, related to loans that were not impaired. In certain circumstances, we restructure troubled loans by granting concessions to borrowers experiencing financial difficulty. Once restructured, the loans are generally considered impaired until their maturity, regardless of whether the borrowers perform under the modified terms of the loans. No loans were modified in troubled debt restructurings during the years ended December 31, 2016 and December 31, 2015 . We generally place loans on non-accrual status once principal or interest payments are 60 days contractually past due, or earlier if management determines that full collection is not probable. Loans 60 days past due, but considered both well-secured and in the process of collection, may be excluded from non-accrual status. When we place a loan on non-accrual status, the accrual of interest is discontinued and previously recorded but unpaid interest is reversed and generally charged against interest revenue. For loans on non-accrual status, revenue is recognized on a cash basis after recovery of principal, if and when interest payments are received. Loans may be removed from non-accrual status when repayment is reasonably assured and performance under the terms of the loan has been demonstrated. As of December 31, 2016 , there was one commercial and financial loan on non-accrual status, no CRE loans or leases were on non-accrual status, and no loans and leases were 90 days or more contractually past due. As of December 31, 2015 , no loans or leases were on non-accrual status or 90 days or more contractually past due. Allowance for loan and lease losses The allowance for loan and lease losses, recorded as a reduction of loans and leases in our consolidated statement of condition, represents management’s estimate of incurred credit losses in our loan and lease portfolio as of the balance sheet date. The allowance is evaluated on a regular basis by management. Factors considered in evaluating the appropriate level of the allowance for each segment of our loan-and-lease portfolio include loss experience, the probability of default reflected in our internal risk rating of the counterparty's creditworthiness, current economic conditions and adverse situations that may affect the borrower’s ability to repay, the estimated value of the underlying collateral, if any, the performance of individual credits in relation to contract terms, and other relevant factors. Loans and leases are charged off to the allowance for loan and lease losses in the reporting period in which either an event occurs that confirms the existence of a loss on a loan or lease or a portion of a loan or lease is determined to be uncollectible. In addition, any impaired loan or lease that is determined to be collateral-dependent is reduced to an amount equal to the fair value of the collateral less costs to sell. A loan or lease is identified as collateral-dependent when management determines that it is probable that the underlying collateral will be the sole source of repayment. Recoveries are recorded on a cash basis as adjustments to the allowance. The following table presents activity in the allowance for loan and lease losses for the periods indicated: Years Ended December 31, 2016 2015 2014 (In millions) Total Loans and Leases Total Loans and Leases Total Loans and Leases Allowance for loan and lease losses (1) : Beginning balance $ 46 $ 38 $ 28 Provision for loan and lease losses 10 12 10 Charge-offs (3 ) (4 ) — Ending balance $ 53 $ 46 $ 38 (1) The provisions and charge-offs for loans and leases were attributable to exposure to senior secured loans to non-investment grade borrowers, purchased in connection with our participation in syndicated loans. Loans and leases are reviewed on a regular basis, and any provisions for loan and lease losses that are recorded reflect management's estimate of the amount necessary to maintain the allowance for loan and lease losses at a level considered appropriate to absorb estimated incurred losses in the loan and lease portfolio. Off-balance sheet credit exposures The reserve for off-balance sheet credit exposures, recorded in accrued expenses and other liabilities in our consolidated statement of condition, represents management’s estimate of probable credit losses in outstanding letters and lines of credit and other credit-enhancement facilities provided to our clients and outstanding as of the balance sheet date. The reserve is evaluated on a regular basis by management. Factors considered in evaluating the appropriate level of this reserve are similar to those considered with respect to the allowance for loan and lease losses. Provisions to maintain the reserve at a level considered by us to be appropriate to absorb estimated incurred credit losses in outstanding facilities are recorded in other expenses in our consolidated statement of income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net tangible and other intangible assets acquired. Other intangible assets represent purchased long-lived intangible assets, primarily client relationships and core deposit intangible assets, that can be distinguished from goodwill because of contractual rights or because the asset can be exchanged on its own or in combination with a related contract, asset or liability. Goodwill is not amortized, but is subject to annual evaluation for impairment. Other intangible assets, which are also subject to annual evaluation for impairment, are mainly related to client relationships, which are amortized on a straight-line basis over periods ranging from five to twenty years, and core deposit intangible assets, which are amortized over periods ranging from sixteen to twenty-two years, with such amortization recorded in other expenses in our consolidated statement of income. Impairment of goodwill is deemed to exist if the carrying value of a reporting unit, including its allocation of goodwill and other intangible assets, exceeds its estimated fair value. Impairment of other intangible assets is deemed to exist if the balance of the other intangible asset exceeds the cumulative expected net cash inflows related to the asset over its remaining estimated useful life. If these reviews determine that goodwill or other intangible assets are impaired, the value of the goodwill or the other intangible asset is written down through a charge to other expenses in our consolidated statement of income. The following table presents changes in the carrying amount of goodwill during the periods indicated: December 31, 2016 December 31, 2015 (In millions) Investment Servicing Investment Management Total Investment Servicing Investment Management Total Goodwill: Beginning balance $ 5,641 $ 30 $ 5,671 $ 5,793 $ 33 $ 5,826 Acquisitions (1) — 236 236 — — — Divestitures and other reductions (11 ) — (11 ) — — — Foreign currency translation (80 ) (2 ) (82 ) (152 ) (3 ) (155 ) Ending balance $ 5,550 $ 264 $ 5,814 $ 5,641 $ 30 $ 5,671 (1) Amounts for 2016 reflect our acquisition of GEAM, which is more fully described in Note 1. The following table presents changes in the net carrying amount of other intangible assets during the periods indicated: December 31, 2016 December 31, 2015 (In millions) Investment Servicing Investment Management Total Investment Servicing Investment Management Total Other intangible assets: Beginning balance $ 1,753 $ 15 $ 1,768 $ 1,998 $ 27 $ 2,025 Acquisitions (1) — 217 217 16 — 16 Divestitures (8 ) — (8 ) — — — Amortization (186 ) (21 ) (207 ) (187 ) (10 ) (197 ) Foreign currency translation and other, net (20 ) — (20 ) (74 ) (2 ) (76 ) Ending balance $ 1,539 $ 211 $ 1,750 $ 1,753 $ 15 $ 1,768 (1) Amounts for 2016 reflect our acquisition of GEAM, which is more fully described in Note 1. The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated: December 31, 2016 December 31, 2015 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Client relationships $ 2,620 $ (1,306 ) $ 1,314 $ 2,486 $ (1,198 ) $ 1,288 Core deposits 661 (277 ) 384 667 (246 ) 421 Other 132 (80 ) 52 147 (88 ) 59 Total $ 3,413 $ (1,663 ) $ 1,750 $ 3,300 $ (1,532 ) $ 1,768 Amortization expense related to other intangible assets was $207 million , $197 million and $222 million in 2016, 2015 and 2014, respectively. An impairment of approximately $9 million associated with intangible assets was included in amortization expense in 2014. Expected future amortization expense for other intangible assets recorded as of December 31, 2016 is as follows: (In millions) Future Amortization Years Ending December 31, 2017 $ 208 2018 186 2019 169 2020 166 2021 161 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The following table presents the components of other assets as of the dates indicated: (In millions) December 31, 2016 December 31, 2015 Receivable - securities lending (1) $ 21,204 $ 20,121 Derivative instruments, net 7,321 4,777 Bank-owned life insurance 3,158 3,078 Investments in joint ventures and other unconsolidated entities 2,363 2,034 Collateral, net 2,236 1,344 Accounts receivable 886 1,018 Prepaid expenses 333 284 Deferred tax assets, net of valuation allowance (2) 210 182 Deposits with clearing organizations 132 127 Income taxes receivable 106 154 Receivable for securities settlement 40 311 Other (3) 339 473 Total $ 38,328 $ 33,903 (1) Refer to Note 11 for further information on the impact of collateral on our financial statement presentation of securities borrowing transactions. (2) Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction as of December 31, 2015. Gross deferred tax assets and liabilities are presented in Note 22. (3) Includes amounts held in escrow accounts at third parties related to the negotiated settlements in the indirect foreign exchange legal matter presented in Note 13. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits As of December 31, 2016 , we had $55.03 billion of time deposits outstanding, of which $214 million were non-U.S. and all of which are scheduled to mature in 2017. As of December 31, 2015 , we had $46.55 billion of time deposits outstanding, of which $127 million were non-U.S. As of December 31, 2016 and 2015 , substantially all U.S. and non-U.S. time deposits were in amounts of $100,000 or more. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Our short-term borrowings include securities sold under repurchase agreements, federal funds purchased and other short-term borrowings; other short-term borrowings include borrowings associated with our tax-exempt investment program, more fully described in Note 14 . We phased out our commercial paper program prior to December 31, 2015 consistent with the objectives of our 2015 recovery and resolution plan developed pursuant to the requirements of the Dodd-Frank Act. Collectively, short-term borrowings had weighted-average interest rates of 0.13% and 0.05% in 2016 and 2015 , respectively. The following tables present information with respect to the amounts outstanding and weighted-average interest rates of the primary components of our short-term borrowings as of and for the years ended December 31 : Securities Sold Under Repurchase Agreements Federal Funds Purchased (Dollars in millions) 2016 2015 2014 2016 2015 2014 Balance as of December 31 $ 4,400 $ 4,499 $ 8,925 $ — $ 6 $ 21 Maximum outstanding as of any month-end 5,572 10,977 10,955 29 29 29 Average outstanding during the year 4,113 8,875 8,817 31 21 20 Weighted-average interest rate as of year-end .040 % .020 % .005 % .00 % .03 % .01 % Weighted-average interest rate for the year .02 .01 .00 .17 .01 .00 Tax-Exempt Investment Program Corporate Commercial Paper Program (1) (Dollars in millions) 2016 2015 2014 2015 2014 Balance as of December 31 $ 1,158 $ 1,748 $ 1,870 $ — $ 2,485 Maximum outstanding as of any month-end 1,726 1,865 1,938 2,919 2,485 Average outstanding during the year 1,512 1,807 1,903 1,897 2,136 Weighted-average interest rate as of year-end .67 % .03 % .06 % .00 % .16 % Weighted-average interest rate for the year .36 .06 .08 .26 .17 (1) We phased out our commercial paper program prior to December 31, 2015. Obligations to repurchase securities sold are recorded as a liability in our consolidated statement of condition. U.S. government securities with a fair value of $4.49 billion underlying the repurchase agreements remained in our investment securities portfolio as of December 31, 2016 . The following table presents information about these U.S. government securities and the carrying value of the related repurchase agreements, including accrued interest, as of December 31, 2016 . The table excludes repurchase agreements collateralized by securities purchased under resale agreements and collateralized by trading account assets. U.S. Government Securities Sold Repurchase Agreements (1) (In millions) Amortized Cost Fair Value Amortized Cost Overnight maturity $ 4,490 $ 4,491 $ 4,400 (1) Collateralized by investment securities We maintain an agreement with a clearing organization that enables us to net all securities purchased under resale agreements and sold under repurchase agreements with counterparties that are also members of the clearing organization. As a result of this netting, the average balances of securities purchased under resale agreements and securities sold under repurchase agreements were reduced by $30.86 billion for 2016 and $30.30 billion for 2015 . State Street Bank currently maintains a line of credit of CAD 1.40 billion , or approximately $1.04 billion as of December 31, 2016 , to support its Canadian securities processing operations. The line of credit has no stated termination date and is cancelable by either party with prior notice. As of December 31, 2016 and 2015 , there was no balance outstanding on this line of credit. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Long-Term Debt (Dollars in millions) As of December 31, Issuance Date Maturity Date Coupon Rate Seniority Interest Due Dates 2016 2015 (6) Statutory business trusts (5) : April 30, 2007 June 15, 2037 Floating-rate Junior subordinated debentures 3/15; 6/15; 9/15; 12/15 $ — $ 793 May 15, 1998 May 15, 2028 Floating-rate Junior subordinated debentures 2/15; 5/15; 8/15; 11/15 — 155 Parent company and non-banking subsidiary issuances: August 18, 2015 August 18, 2025 3.55 % Senior notes 2/18; 8/18 (1) 1,293 1,301 August 18, 2015 August 18, 2020 2.55 % Senior notes 2/18; 8/18 (1) 1,192 1,194 November 19, 2013 November 20, 2023 3.7 % Senior notes 5/20; 11/20 (1) 1,033 1,046 December 15, 2014 December 16, 2024 3.3 % Senior notes 6/16; 12/16 (1) 999 1,007 May 15, 2013 May 15, 2023 (2) 3.1 % Subordinated notes 5/15; 11/15 (1) 987 993 April 30, 2007 (5) June 15, 2037 Floating-rate Junior subordinated debentures 3/15; 6/15; 9/15; 12/15 793 — March 7, 2011 March 7, 2021 4.375 % Senior notes 3/7; 9/7 (1) 738 738 May 19, 2016 May 19, 2021 1.95 % Senior notes 5/19; 11/19 (1) 726 — May 19, 2016 May 19, 2026 2.65 % Senior notes 5/19; 11/19 (1) 704 — February 11, 2011 March 15, 2018 (3) 4.956 % Junior subordinated debentures 3/15; 9/15 (1) 511 519 August 18, 2015 August 18, 2020 Floating-rate Senior notes 2/18; 5/18; 8/18; 11/18 499 498 May 15, 2013 May 15, 2018 1.35 % Senior notes 5/15; 11/15 (1) 497 495 April 30, 2007 April 30, 2017 5.375 % Senior notes 4/30; 10/30 450 449 May 15, 1998 (5) May 15, 2028 Floating-rate Junior subordinated debentures 2/15; 5/15; 8/15; 11/15 150 — June 21, 1996 June 15, 2026 (4) 7.35 % Senior notes 6/15; 12/15 150 150 March 7, 2011 March 7, 2016 2.875 % Senior notes 3/7 — 1,001 Parent company: Long-term capital leases 293 334 State Street Bank issuances: September 24, 2003 October 15, 2018 (2) 5.25 % Subordinated notes 4/15; 10/15 415 424 December 8, 2005 January 15, 2016 5.3 % Subordinated notes 1/15 — 400 Total long-term debt $ 11,430 $ 11,497 (1) We have entered into interest-rate swap agreements, recorded as fair value hedges, to modify our interest expense on these senior and subordinated notes from a fixed rate to a floating rate. As of December 31, 2016 , the carrying value of long-term debt associated with these fair value hedges decreased $15 million . As of December 31, 2015 , the carrying value of long-term debt associated with these fair value hedges increased $105 million . Refer to Note 10 for additional information about fair value hedges. (2) The subordinated notes qualify for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines. (3) We do not have the right to redeem the debenture prior to maturity other than upon the occurrence of specified events. Such redemption is subject to federal regulatory approval. The junior subordinated debenture qualify for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines. (4) We may not redeem the note prior to their maturity. (5) On December 21, 2016, the statutory business trusts were liquidated and the floating-rate junior subordinated debentures issuances of the statutory business trusts were exchanged for a like principal amount of State Street Corporation's floating-rate junior subordinated debentures with the same maturity dates. (6) Refer to Note 1 regarding the retrospective application of ASU 2015-03, which resulted in the netting of debt issuance costs within long-term debt. We maintain an effective universal shelf registration that allows for the offering and sale of debt securities, capital securities, common stock, depositary shares and preferred stock, and warrants to purchase such securities, including any shares into which the preferred stock and depositary shares may be convertible, or any combination thereof. As of December 31, 2016 , State Street Bank had Board authority to issue unsecured senior debt securities from time to time, provided that the aggregate principal amount of such unsecured senior debt outstanding at any one time does not exceed $5 billion . As of December 31, 2016 , $4 billion was available for issuance pursuant to this authority. As of December 31, 2016 , State Street Bank also had Board authority to issue an additional $500 million of subordinated debt. Statutory Business Trusts: As of December 31, 2015 , we had two statutory business trusts, State Street Capital Trusts I and IV, which as of December 31, 2015 had collectively issued $955 million of trust preferred capital securities. Proceeds received by each of the trusts from their capitalization and from their capital securities issuances were invested in junior subordinated debentures issued by the parent company. The junior subordinated debentures were the sole assets of Capital Trusts I and IV. Each of the trusts was wholly-owned by us; however, in conformity with U.S. GAAP, we did not record the trusts in our consolidated financial statements. Payments made by the trusts to holders of the capital securities were dependent on our payments made to the trusts on the junior subordinated debentures. Our fulfillment of these commitments had the effect of providing a full, irrevocable and unconditional guarantee of the trusts’ obligations under the capital securities. While the capital securities issued by the trusts were not recorded in our consolidated statement of condition, a portion of the junior subordinated debentures qualified for inclusion in tier 1 regulatory capital with the remainder qualifying for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines. Information about restrictions on our ability to obtain funds from our subsidiary banks is provided in Note 16 . Interest paid by the parent company on the debentures was recorded in interest expense. Distributions to holders of the capital securities by the trusts were payable from interest payments received on the debentures and were due quarterly by State Street Capital Trusts I and IV, subject to deferral for up to five years under certain conditions. The capital securities were subject to mandatory redemption in whole at the stated maturity upon repayment of the debentures, with an option by us to redeem the debentures at any time. Such optional redemption was subject to federal regulatory approval. Effective December 21, 2016, the liquidation date, State Street Capital Trusts I and IV were dissolved in accordance with the terms of State Street Capital Trusts I and IV, and we exchanged the floating-rate capital securities of State Street Capital Trust I due in 2028 for a like principal amount of State Street Corporation floating-rate junior subordinated debentures due in 2028, and we exchanged the floating-rate capital securities of State Street Capital Trust IV due in 2037 for a like principal amount of State Street Corporation floating-rate junior subordinated debentures due in 2037. The next scheduled interest payment on the State Street Corporation floating-rate junior subordinated debentures due in 2028 and 2037 will include any accrued and unpaid distributions on the floating rate capital securities of State Street Capital Trust I due in 2028 and State Street Capital Trust IV due in 2037, respectively. Parent Company: As of December 31, 2016 and 2015 , long-term capital leases included $278 million and $308 million , respectively, related to our One Lincoln Street headquarters building and related underground parking garage. Refer to Note 20 for additional information. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments A derivative financial instrument is a financial instrument or other contract which has one or more referenced indices and one or more notional amounts, either no initial net investment or a smaller initial net investment than would be expected for similar types of contracts, and which requires or permits net settlement. We use derivative financial instruments to support our clients' needs and to manage our interest-rate and currency risk. In undertaking these activities, we assume positions in both the foreign exchange and interest-rate markets by buying and selling cash instruments and using derivative financial instruments, including foreign exchange forward contracts, foreign exchange options and interest-rate contracts. Our derivative positions include derivative contracts held by a consolidated sponsored investment fund (refer to Note 14 ). We record derivatives in our consolidated statement of condition at their fair value on a recurring basis. Interest rate contracts involve an agreement with a counterparty to exchange cash flows based on the movement of an underlying interest rate index. An interest rate swap agreement involves the exchange of a series of interest payments, at either a fixed or variable rate, based on the notional amount without the exchange of the underlying principal amount. An interest rate option contract provides the purchaser, for a premium, the right, but not the obligation, to receive an interest rate based upon a predetermined notional amount during a specified period. An interest rate futures contract is a commitment to buy or sell, at a future date, a financial instrument at a contracted price; it may be settled in cash or through the delivery of the contracted instrument. Foreign exchange contracts involve an agreement to exchange one currency for another currency at an agreed-upon rate and settlement date. Foreign exchange contracts generally consist of foreign exchange forward and spot contracts, option contracts and cross-currency swaps. Future cash requirements, if any, related to foreign exchange contracts are represented by the gross amount of currencies to be exchanged under each contract unless we and the counterparty have agreed to pay or to receive the net contractual settlement amount on the settlement date. Derivative financial instruments involve the management of interest-rate and foreign currency risk, and involve, to varying degrees, market risk and credit and counterparty risk (risk related to repayment). Market risk is defined by U.S. banking regulators as the risk of loss that could result from broad market movements, such as changes in the general level of interest rates, credit spreads, foreign exchange rates or commodity prices. We use a variety of risk management tools and methodologies to measure, monitor and manage the market risk associated with our trading activities, which include our use of derivative financial instruments. One such risk-management measure is VaR. VaR is an estimate of potential loss for a given period within a stated statistical confidence interval. We use a risk measurement system to measure VaR daily. We have adopted standards for measuring VaR, and we maintain regulatory capital for market risk in accordance with currently applicable regulatory market risk requirements. Derivative financial instruments are also subject to credit and counterparty risk, which we manage by performing credit reviews, maintaining individual counterparty limits, entering into netting arrangements and requiring the receipt of collateral. Cash collateral received from and provided to counterparties in connection with derivative financial instruments is recorded in accrued expenses and other liabilities and other assets, respectively, in our consolidated statement of condition. As of December 31, 2016 and 2015 , we had recorded approximately $1.99 billion and $1.40 billion , respectively, of cash collateral received from counterparties and approximately $4.39 billion and $1.65 billion , respectively, of cash collateral provided to counterparties in connection with derivative financial instruments in our consolidated statement of condition. Certain of our derivative assets and liabilities as of December 31, 2016 and 2015 are subject to master netting agreements with our derivative counterparties. Certain of these agreements contain credit risk-related contingent features in which the counterparty has the right to declare us in default and accelerate cash settlement of our net derivative liabilities with the counterparty in the event that our credit rating falls below specified levels. The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a net liability position as of December 31, 2016 totaled approximately $1.19 billion , against which we provided $92 million of underlying collateral. If our credit rating were downgraded below levels specified in the agreements, the maximum additional amount of payments related to termination events that could have been required pursuant to these contingent features, assuming no change in fair value, as of December 31, 2016 was approximately $1.10 billion . Such accelerated settlement would be at fair value and therefore not affect our consolidated results of operations. On the date a derivative contract is entered into, we designate the derivative as: (1) a hedge of the fair value of a recognized fixed-rate asset or liability or of an unrecognized firm commitment (a “fair value” hedge); (2) a hedge of a forecast transaction or of the variability of cash flows to be received or paid related to a recognized variable-rate asset or liability (a “cash flow” hedge); (3) a foreign currency fair value or cash flow hedge (a “foreign currency” hedge); (4) a hedge of a net investment in a non-U.S. operation; or (5) a derivative utilized in either our trading activities or in our asset-and-liability management activities that is not designated as a hedge of an asset or liability. At both the inception of the hedge and on an ongoing basis, we formally assess and document the effectiveness of a derivative designated in a hedging relationship and the likelihood that the derivative will be an effective hedge in future periods. We discontinue hedge accounting prospectively when we determine that the derivative is no longer highly effective in offsetting changes in fair value or cash flows of the underlying risk being hedged, the derivative expires, terminates or is sold, or management discontinues the hedge designation. Unrealized gains and losses on foreign exchange and interest-rate contracts are reported at fair value in our consolidated statement of condition as a component of other assets and accrued expenses and other liabilities, respectively, on a gross basis, except where such gains and losses arise from contracts covered by qualifying master netting agreements. Derivatives Not Designated as Hedging Instruments: In connection with our trading activities, we use derivative financial instruments in our role as a financial intermediary and as both a manager and servicer of financial assets, in order to accommodate our clients' investment and risk management needs. In addition, we use derivative financial instruments for risk management purposes as economic hedges, which are not formally designated as accounting hedges, in order to contribute to our overall corporate earnings and liquidity. These activities are designed to generate trading services revenue and to manage volatility in our net interest revenue. The level of market risk that we assume is a function of our overall objectives and liquidity needs, our clients' requirements and market volatility. With respect to cross-border investing, our clients often enter into foreign exchange forward contracts to convert currency for international investments and to manage the currency risk in their international investment portfolios. As an active participant in the foreign exchange markets, we provide foreign exchange forward contracts and options in support of these client needs, and also act as a dealer in the currency markets. As part of our trading activities, we assume positions in both the foreign exchange and interest-rate markets by buying and selling cash instruments and using derivative financial instruments, including foreign exchange forward contracts, foreign exchange and interest-rate options and interest rate swaps, interest rate forward contracts, and interest rate futures. In the aggregate, we seek to match positions closely with the objective of minimizing related currency and interest-rate risk. We also use foreign currency swap contracts to manage the foreign exchange risk associated with certain foreign currency-denominated liabilities. The foreign exchange swap contracts are entered into for periods generally consistent with foreign currency exposure of the underlying transactions. The entire changes in the fair value of the derivatives utilized in our trading activities are recorded in trading services revenue, and the entire changes in fair value of derivatives utilized in our asset-and-liability management activities are recorded in processing fees and other revenue. We offer products that provide book-value protection primarily to plan participants in stable value funds managed by non-affiliated investment managers of post-retirement defined contribution benefit plans, particularly 401(k) plans. We account for the associated contingencies, more fully described in Note 12 , individually as derivative financial instruments. These contracts are valued quarterly and unrealized losses, if any, are recorded in other expenses in our consolidated statement of income. We grant deferred cash awards to certain of our employees as part of our employee incentive compensation plans. We account for these awards as derivative financial instruments, as the underlying referenced shares are not equity instruments of State Street. The fair value of these derivatives is referenced to the value of units in State Street-sponsored investment funds or funds sponsored by other unrelated entities. We re-measure these derivatives to fair value quarterly, and record the change in value in compensation and employee benefits expenses in our consolidated statement of income. Derivatives Designated as Hedging Instruments: In connection with our asset-and-liability management activities, we use derivative financial instruments to manage our interest rate risk and foreign currency risk. Interest rate risk, defined as the sensitivity of income or financial condition to variations in interest rates, is a significant non-trading market risk to which our assets and liabilities are exposed. We manage our interest rate risk by identifying, quantifying and hedging our exposures, using fixed-rate portfolio securities and a variety of derivative financial instruments, most frequently interest-rate swaps. Interest rate swap agreements alter the interest-rate characteristics of specific balance sheet assets or liabilities. We use foreign exchange forward and swap contracts to hedge foreign exchange exposure to various foreign currencies with respect to certain assets and liabilities. Our hedging relationships are formally designated, and qualify for hedge accounting, as fair value, cash flow or net investment hedges. Fair Value Hedges Derivatives designated as fair value hedges are utilized to mitigate the risk of changes in the fair values of recognized assets and liabilities. Differences between the gains and losses on the hedging derivative and the gains and losses on the hedged asset or liability attributable to the hedged risk represent hedge ineffectiveness. We use interest rate or foreign exchange contracts in this manner to manage our exposure to changes in the fair value of hedged items caused by changes in interest rates or foreign exchange rates. Changes in the fair value of a derivative that is highly effective, and that is designated and qualifies as a fair value hedge, are recorded in processing fees and other revenue, along with the changes in fair value of the hedged asset or liability attributable to the hedged risk. We have entered into interest rate swap agreements to modify our interest revenue from certain AFS investment securities from a fixed rate to a floating rate. The hedged AFS investment securities included hedged trusts that had a weighted-average life of approximately 4.5 years as of December 31, 2016 , compared to 5.4 years as of December 31, 2015 . These trusts are hedged with interest rate swap contracts of similar maturity, repricing frequency and fixed-rate coupons. The interest rate swap contracts convert the interest revenue from a fixed rate to a floating rate indexed to LIBOR, thereby mitigating our exposure to fluctuations in the fair value of the securities attributable to changes in the benchmark interest rate. We have entered into interest rate swap agreements to modify our interest expense on eight senior notes and two subordinated notes from fixed rates to floating rates. The senior and subordinated notes are hedged with interest rate swap contracts with notional amounts, maturities and fixed-rate coupon terms that effectively hedge the fixed-rate notes. The interest rate swap contracts convert the fixed-rate coupons to floating rates indexed to LIBOR, thereby mitigating our exposure to fluctuations in the fair values of the senior and subordinated notes stemming from changes in the benchmark interest rates. The table below summarizes the maturities and the paid fixed interest rates for the hedged senior and subordinated notes: December 31, 2016 Maturity Paid Fixed Interest Rate Senior Notes 2018 1.35% 2020 2.55 2021 1.95 2021 4.38 2023 3.70 2024 3.30 2025 3.55 2026 2.65 Subordinated Notes 2018 4.96 2023 3.10 We have entered into foreign exchange swap contracts to hedge the change in fair value attributable to foreign exchange movements in our foreign currency denominated investment securities and deposits. These forward contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the fair value of the securities and deposits attributable to changes in foreign exchange rates. Generally, no ineffectiveness is recorded in earnings, since the notional amount of the hedging instruments is aligned with the carrying value of the hedged securities and deposits. The forward points on the hedging instruments are considered to be a hedging cost, and accordingly are excluded from the evaluation of hedge effectiveness and recorded in net interest revenue. Changes in the fair value of a derivative that are highly effective, and that are designated and qualify as a foreign currency hedge, are recorded in processing fees and other revenue. Cash Flow Hedges Derivatives categorized as cash flow hedges are utilized to offset the variability of cash flows to be received from or paid on a floating-rate asset or liability. Ineffectiveness of cash flow hedges is defined as the extent to which the changes in fair value of the derivative exceed the changes in the present value of the forecasted cash flows attributable to the forecasted transaction. We have entered into foreign exchange contracts to hedge the change in cash flows attributable to foreign exchange movements in foreign currency denominated investment securities. These foreign exchange contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the cash flows of the securities attributable to changes in foreign exchange rates. Generally, no ineffectiveness is recorded in earnings, since the critical terms of the hedging instruments and the hedged securities are aligned. Changes in the fair value of the derivative that are highly effective, and that are designated and qualify as a foreign currency hedge, are recorded in other comprehensive income. Net Investment Hedges We have entered into foreign exchange contracts to protect the net investment in our foreign operations against adverse changes in exchange rates. These forward contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the fair value of our net investments in our foreign operations attributable to changes in foreign exchange rates. The changes in fair value of the foreign exchange forward contracts are recorded, net of taxes, in the foreign currency translation component of other comprehensive income. Effectiveness of net investment hedges is based on the overall changes in the fair value of the forward contracts and we measure the ineffectiveness of net investment hedge based on changes in forward foreign currency rates. There was no ineffectiveness for our net investment hedge during 2016. The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with our trading and asset-and-liability management activities as of the dates indicated: (In millions) December 31, December 31, Derivatives not designated as hedging instruments: Interest-rate contracts: Swap agreements and forwards $ — $ 336 Futures 13,455 2,621 Foreign exchange contracts: Forward, swap and spot 1,414,765 1,274,277 Options purchased 337 403 Options written 202 404 Credit derivative contracts: Credit swap agreements (1) — 141 Commodity and equity contracts: Commodity (1) — 113 Equity (1) — 87 Other: Stable value contracts 27,182 24,583 Deferred value awards (2)(3) 409 320 Derivatives designated as hedging instruments: Interest-rate contracts: Swap agreements 10,169 9,398 Foreign exchange contracts: Forward and swap 8,564 4,515 (1) Primarily composed of positions held by a consolidated sponsored investment fund, more fully described in Note 14 . (2) Represents grants of deferred value awards to employees; refer to discussion in this note under "Derivatives Not Designated as Hedging Instruments." (3) Amount as of December 31, 2016 reflects $249 million related to the acceleration of expense associated with certain cash settled deferred incentive compensation awards. In connection with our asset-and-liability management activities, we have entered into interest-rate contracts designated as fair value hedges to manage our interest rate risk. The following tables present the aggregate notional amounts of these interest rate contracts and the related assets or liabilities being hedged as of the dates indicated: December 31, 2016 (1) (In millions) Fair Value Hedges Investment securities available-for-sale $ 1,444 Long-term debt (2) 8,725 Total $ 10,169 December 31, 2015 (1) (In millions) Fair Value Hedges Investment securities available-for-sale $ 1,698 Long-term debt (2) 7,700 Total $ 9,398 (1) As of December 31, 2016 and 2015 , there were no interest-rate contracts designated as cash flow hedges. (2) As of December 31, 2016 , these fair value hedges decreased the carrying value of long-term debt presented in our consolidated statement of condition by $15 million . As of December 31, 2015 , these fair value hedges increased the carrying value of long-term debt presented in our consolidated statement of condition by $105 million . Notional amounts of derivative financial instruments are not recorded in the consolidated statement of condition. They are provided here as an indication of the volume of our derivative activity and do not represent a measure of our potential gains or losses. The notional amounts are not required to be exchanged for most of our derivative contracts and they generally serve as a reference to calculate the fair values of the derivatives. The following table presents the contractual and weighted-average interest rates for long-term debt, which include the effects of the fair value hedges presented in the table above, for the periods indicated: Years Ended December 31, 2016 2015 Contractual Rate Contractual Rate Long-term debt 3.40 % 2.29 % 3.57 % 2.42 % The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is disclosed in Note 11 . Derivative Assets (1) Fair Value (In millions) December 31, 2016 December 31, 2015 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 15,982 $ 10,799 Interest-rate contracts — 2 Other derivative contracts — 5 Total $ 15,982 $ 10,806 Derivatives designated as hedging instruments: Foreign exchange contracts $ 502 $ 517 Interest-rate contracts 68 133 Total $ 570 $ 650 (1) Derivative assets are included within other assets in our consolidated statement of condition. Derivative Liabilities (1) Fair Value (In millions) December 31, 2016 December 31, 2015 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 15,881 $ 10,795 Other derivative contracts 380 103 Interest-rate contracts — 2 Total $ 16,261 $ 10,900 Derivatives designated as hedging instruments: Foreign exchange contracts $ 75 $ 73 Interest-rate contracts 348 180 Total $ 423 $ 253 (1) Derivative liabilities are included within other liabilities in our consolidated statement of condition. The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Years Ended December 31, (In millions) 2016 2015 2014 Derivatives not designated as hedging instruments: Foreign exchange contracts Trading services revenue $ 662 $ 686 $ 612 Interest-rate contracts Processing fees and other revenue 1 — — Interest-rate contracts Trading services revenue (7 ) (2 ) 1 Credit derivative contracts Trading services revenue (1 ) (1 ) 1 Credit derivative contracts Processing fees and other revenue — — (1 ) Other derivative contracts Trading services revenue (2 ) 8 (2 ) Other derivative contracts (1) Compensation and employee benefits (448 ) (149 ) (106 ) Total $ 205 $ 542 $ 505 (1) Amount in 2016 reflects $249 million related to the acceleration of expense associated with certain cash settled deferred incentive compensation awards. Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income Years Ended December 31, Years Ended December 31, (In millions) 2016 2015 2014 2016 2015 2014 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and $ (6 ) $ (101 ) $ (92 ) Investment securities Processing fees and $ 6 $ 101 $ 92 Foreign exchange contracts Processing fees and other revenue 221 (241 ) — FX deposit Processing fees and other revenue (221 ) 241 — Interest-rate contracts Processing fees and other revenue 43 16 (44 ) Available-for-sale securities Processing fees and other revenue (1) (40 ) (17 ) 39 Interest-rate contracts Processing fees and (98 ) 61 150 Long-term debt Processing fees and 100 (54 ) (138 ) Total $ 160 $ (265 ) $ 14 $ (155 ) $ 271 $ (7 ) (1) In 2016 , 2015 and 2014 , $23 million of net unrealized gains, $12 million of net unrealized gains and $24 million net unrealized losses, respectively, on AFS investment securities designated in fair value hedges were recognized in OCI. Differences between the gains (losses) on the derivative and the gains (losses) on the hedged item, excluding any amounts recorded in net interest revenue, represent hedge ineffectiveness. Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Years Ended December 31, Years Ended December 31, Years Ended December 31, (In millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Derivatives designated as cash flow hedges: Interest-rate contracts $ — $ — $ (2 ) Net interest revenue $ — $ (4 ) $ (4 ) Net interest revenue $ — $ — $ 3 Foreign exchange contracts (39 ) 55 126 Net interest revenue — — — Net interest revenue 24 10 6 Total $ (39 ) $ 55 $ 124 $ — $ (4 ) $ (4 ) $ 24 $ 10 $ 9 Derivatives designated as net investment hedges: Foreign exchange contracts $ 109 $ — $ — Gains (Losses) related to investment securities, net $ — $ — $ — Gains (Losses) related to investment securities, net $ — $ — $ — Total $ 109 $ — $ — $ — $ — $ — $ — $ — $ — |
Offsetting Arrangements
Offsetting Arrangements | 12 Months Ended |
Dec. 31, 2016 | |
Offsetting [Abstract] | |
Offsetting Arrangements | Offsetting Arrangements We manage credit and counterparty risk by entering into enforceable netting agreements and other collateral arrangements with counterparties to derivative contracts and secured financing transactions, including resale and repurchase agreements, and principal securities borrowing and lending agreements. These netting agreements mitigate our counterparty credit risk by providing for a single net settlement with a counterparty of all financial transactions covered by the agreement in an event of default as defined under such agreement. In limited cases, a netting agreement may also provide for the periodic netting of settlement payments with respect to multiple different transaction types in the normal course of business. Certain of our derivative contracts are executed under either standardized netting agreements or, for exchange-traded derivatives, the relevant contracts for a particular exchange which contain enforceable netting provisions. In certain cases, we may have cross-product netting arrangements which allow for netting and set-off of a variety of types of derivatives with a single counterparty. A derivative netting arrangement creates an enforceable right of set-off that becomes effective, and effects the realization or settlement of individual financial assets and liabilities, only following a specified event of default. Collateral requirements associated with our derivative contracts are determined after a review of the creditworthiness of each counterparty, and the requirements are monitored and adjusted daily, typically based on net exposure by counterparty. Collateral is generally in the form of cash or highly liquid U.S. government securities. In connection with secured financing transactions, we enter into netting agreements and other collateral arrangements with counterparties, which provide for the right to liquidate collateral in the event of default. Collateral is generally required in the form of cash, equity securities or fixed-income securities. Default events may include the failure to make payments or deliver securities timely, material adverse changes in financial condition or insolvency, the breach of minimum regulatory capital requirements, or loss of license, charter or other legal authorization necessary to perform under the contract. In order for an arrangement to be eligible for netting, we must have a reasonable basis to conclude that such netting arrangements are legally enforceable. The analysis of the legal enforceability of an arrangement differs by jurisdiction, depending on the laws of that jurisdiction. In many jurisdictions, specific legislation exists that provides for the enforceability in bankruptcy of close-out netting under a netting agreement, typically by way of specific exception from more general prohibitions on the exercise of creditor rights. When we have a legally enforceable netting arrangement between us and the derivative counterparty and the relevant transaction is the type of transaction that is recorded in our consolidated statement of condition, we offset derivative assets and liabilities, and the related collateral received and provided, in our consolidated statement of condition. We also offset assets and liabilities related to secured financing transactions with the same counterparty or clearinghouse which have the same maturity date and are settled in the normal course of business on a net basis. Collateral that we receive in the form of securities in connection with secured financing transactions and derivative contracts can be transferred or re-pledged as collateral in many instances to enter into repurchase agreements or securities finance or derivative transactions. The securities collateral received in connection with our securities finance activities is recorded at fair value in other assets in our consolidated statement of condition, with a related liability to return the collateral, if we have the right to transfer or re-pledge the collateral. As of December 31, 2016 and December 31, 2015 , the fair value of securities received as collateral from third parties where we are permitted to transfer or re-pledge the securities totaled $1.77 billion and $3.05 billion , respectively, and the fair value of the portion that had been transferred or re-pledged as of the same date was $166 million and $262 million , respectively. The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated: Assets: December 31, 2016 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Cash and Securities Received (5) Net Amount (6) Derivatives: Foreign exchange contracts $ 16,484 $ (8,257 ) $ 8,227 $ 8,227 Interest-rate contracts 68 (68 ) — — Cash collateral and securities netting NA (906 ) (906 ) $ (247 ) (1,153 ) Total derivatives 16,552 (9,231 ) 7,321 (247 ) 7,074 Other financial instruments: Resale agreements and securities borrowing (4) 58,677 (35,517 ) 23,160 (22,939 ) 221 Total derivatives and other financial instruments $ 75,229 $ (44,748 ) $ 30,481 $ (23,186 ) $ 7,295 Assets: December 31, 2015 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Cash and Securities Received (5) Net Amount (6) Derivatives: Foreign exchange contracts $ 11,316 $ (5,896 ) $ 5,420 $ 5,420 Interest-rate contracts 135 (5 ) 130 130 Other derivative contracts 5 (2 ) 3 3 Cash collateral and securities netting NA (776 ) (776 ) $ (405 ) (1,181 ) Total derivatives 11,456 (6,679 ) 4,777 (405 ) 4,372 Other financial instruments: Resale agreements and securities borrowing (4) 62,522 (38,997 ) 23,525 (22,875 ) 650 Total derivatives and other financial instruments $ 73,978 $ (45,676 ) $ 28,302 $ (23,280 ) $ 5,022 NA: Not applicable. (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. Refer to Note 1 and Note 2 for additional information on the measurement basis of these instruments. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Included in the $23,160 million as of December 31, 2016 were $1,956 million of resale agreements and $21,204 million of collateral provided related to securities borrowing. Included in the $23,525 million as of December 31, 2015 were $3,404 million of resale agreements and $20,121 million of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 12 for additional information with respect to principal securities finance transactions. (5) Includes securities in connection with our securities borrowing transactions. (6) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated: Liabilities: December 31, 2016 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Cash and Securities Provided (5) Net Amount (6) Derivatives: Foreign exchange contracts $ 15,956 $ (8,253 ) $ 7,703 $ 7,703 Interest-rate contracts 348 (73 ) 275 275 Other derivative contracts 380 — 380 380 Cash collateral and securities netting NA (2,356 ) (2,356 ) $ (180 ) (2,536 ) Total derivatives 16,684 (10,682 ) 6,002 (180 ) 5,822 Other financial instruments: Repurchase agreements and securities lending (4) 44,933 (35,517 ) 9,416 (7,059 ) 2,357 Total derivatives and other financial instruments $ 61,617 $ (46,199 ) $ 15,418 $ (7,239 ) $ 8,179 Liabilities: December 31, 2015 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Cash and Securities Provided (5) Net Amount (6) Derivatives: Foreign exchange contracts $ 10,868 $ (5,896 ) $ 4,972 $ 4,972 Interest-rate contracts 182 (5 ) 177 177 Other derivative contracts 103 (2 ) 101 101 Cash collateral and securities netting NA (1,118 ) (1,118 ) $ (64 ) (1,182 ) Total derivatives 11,153 (7,021 ) 4,132 (64 ) 4,068 Other financial instruments: Resale agreements and securities lending (4) 46,766 (38,997 ) 7,769 (5,350 ) 2,419 Total derivatives and other financial instruments $ 57,919 $ (46,018 ) $ 11,901 $ (5,414 ) $ 6,487 NA: Not applicable. (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. Refer to Note 1 and Note 2 for additional information on the measurement basis of these instruments. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Included in the $9,416 million as of December 31, 2016 were $4,400 million of repurchase agreements and $5,016 million of collateral received related to securities lending. Included in the $7,769 million as of December 31, 2015 were $4,499 million of repurchase agreements and $3,270 million of collateral received related to securities lending. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilit ies, respectively, in our consolidated statement of condition. Refer to Note 12 for additional information with respect to principal securities finance transactions. (5) Includes securities provided in connection with our securities lending transactions. (6) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. The securities transferred under resale and repurchase agreements typically are U.S. Treasury, agency and agency mortgage-backed securities. In our principal securities borrowing and lending arrangements, the securities transferred are predominantly equity securities and some corporate debt securities. The fair value of the securities transferred may increase in value to an amount greater than the amount received under our repurchase and securities lending arrangements, which exposes the Company with counterparty risk. We require the review of the price of the underlying securities in relation to the carrying value of the repurchase agreements and securities lending arrangements on a daily basis and when appropriate, adjust the cash or security to be obtained or returned to counterparties that is reflective of the required collateral levels. The following tables summarize our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated: Remaining Contractual Maturity of the Agreements As of December 31, 2016 (In millions) Overnight and Continuous Up to 30 days 30 – 90 days Total Repurchase agreements: U.S. Treasury and agency securities $ 35,509 $ — $ — $ 35,509 Total 35,509 — — 35,509 Securities lending transactions: Corporate debt securities 53 — — 53 Equity securities 8,337 — 1,034 9,371 Total 8,390 — 1,034 9,424 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 43,899 $ — $ 1,034 $ 44,933 Remaining Contractual Maturity of the Agreements As of December 31, 2015 (In millions) Overnight and Continuous Up to 30 days 30 – 90 days Total Repurchase agreements: U.S. Treasury and agency securities $ 37,157 $ 5 $ — $ 37,162 Non-U.S. sovereign debt — 97 — 97 Total 37,157 102 — 37,259 Securities lending transactions: Corporate debt securities 1 — — 1 Equity securities 8,502 — 1,002 9,504 Non-U.S. sovereign debt 2 — — 2 Total 8,505 — 1,002 9,507 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 45,662 $ 102 $ 1,002 $ 46,766 |
Commitments and Guarantees
Commitments and Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Guarantees | Commitments and Guarantees The following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and off-balance sheet guarantees as of the dates indicated. (In millions) December 31, 2016 December 31, 2015 Commitments (1) : Unfunded credit facilities $ 28,154 $ 26,570 Guarantees (2) : Indemnified securities financing $ 360,452 $ 320,436 Stable value protection 27,182 24,583 Standby letters of credit 3,459 4,700 (1) The potential losses associated with these commitments equal the gross contractual amounts, and do not consider the value of any collateral. (2) The potential losses associated with these guarantees equal the gross contractual amounts and do not consider the value of any collateral or reflect any participations to independent third parties. Unfunded Credit Facilities Unfunded credit facilities consist of liquidity facilities for our fund and municipal lending clients and undrawn lines of credit related to senior secured bank loans. As of December 31, 2016 , approximately 73% of our unfunded commitments to extend credit expire within one year. Since many of these commitments are expected to expire or renew without being drawn upon, the gross contractual amounts do not necessarily represent our future cash requirements. Indemnified Securities Financing On behalf of our clients, we lend their securities, as agent, to brokers and other institutions. In most circumstances, we indemnify our clients for the fair market value of those securities against a failure of the borrower to return such securities. We require the borrowers to maintain collateral in an amount in excess of 100% of the fair market value of the securities borrowed. Securities on loan and the collateral are revalued daily to determine if additional collateral is necessary or if excess collateral is required to be returned to the borrower. Collateral received in connection with our securities lending services is held by us as agent and is not recorded in our consolidated statement of condition. The cash collateral held by us as agent is invested on behalf of our clients. In certain cases, the cash collateral is invested in third-party repurchase agreements, for which we indemnify the client against loss of the principal invested. We require the counterparty to the indemnified repurchase agreement to provide collateral in an amount in excess of 100% of the amount of the repurchase agreement. In our role as agent, the indemnified repurchase agreements and the related collateral held by us are not recorded in our consolidated statement of condition. The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated: (In millions) December 31, 2016 December 31, 2015 Fair value of indemnified securities financing $ 360,452 $ 320,436 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 377,919 335,420 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 60,003 63,055 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 63,959 67,016 In certain cases, we participate in securities finance transactions as a principal. As a principal, we borrow securities from the lending client and then lend such securities to the subsequent borrower, either a State Street client or a broker/dealer. Collateral provided and received in connection with such transactions is recorded in other assets and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. As of December 31, 2016 and December 31, 2015 , we had approximately $21.20 billion and $20.12 billion , respectively, of collateral provided and approximately $5.02 billion and $3.27 billion , respectively, of collateral received from clients in connection with our participation in principal securities finance transactions. Stable Value Protection In the normal course of our business, we offer products that provide book-value protection, primarily to plan participants in stable value funds managed by non-affiliated investment managers of post-retirement defined contribution benefit plans, particularly 401(k) plans. The book-value protection is provided on portfolios of intermediate investment grade fixed-income securities, and is intended to provide safety and stable growth of principal invested. The protection is intended to cover any shortfall in the event that a significant number of plan participants withdraw funds when book value exceeds market value and the liquidation of the assets is not sufficient to redeem the participants. The investment parameters of the underlying portfolios, combined with structural protections, are designed to provide cushion and guard against payments even under extreme stress scenarios. These contingencies are individually accounted for as derivative financial instruments. The notional amounts of the stable value contracts are presented as “derivatives not designated as hedging instruments” in the table of aggregate notional amounts of derivative financial instruments provided in Note 10 . We have not made a payment under these contingencies that we consider material to our consolidated financial condition, and management believes that the probability of payment under these contingencies in the future, that we would consider material to our consolidated financial condition, is remote. Standby Letters of Credit Standby letters of credit provide credit enhancement to our municipal clients to support the issuance of capital markets financing. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal and Regulatory Matters: In the ordinary course of business, we and our subsidiaries are involved in disputes, litigation, and governmental or regulatory inquiries and investigations, both pending and threatened. These matters, if resolved adversely against us or settled, may result in monetary damages, fines and penalties or require changes in our business practices. The resolution or settlement of these matters is inherently difficult to predict. Based on our assessment of these pending matters, we do not believe that the amount of any judgment, settlement or other action arising from any pending matter is likely to have a material adverse effect on our consolidated financial condition. However, an adverse outcome in certain of the matters described below could have a material adverse effect on our consolidated results of operations for the period in which such matter is resolved, or an accrual is determined to be required, on our consolidated financial condition, or on our reputation. We evaluate our needs for accruals of loss contingencies related to legal proceedings on a case-by-case basis. When we have a liability that we deem probable and that we deem can be reasonably estimated as of the date of our consolidated financial statements, we accrue for our estimate of the loss. We also consider a loss probable and establish an accrual when we make, or intend to make, an offer of settlement. Once established, an accrual is subject to subsequent adjustment as a result of additional information. The resolution of proceedings and the reasonably estimable loss (or range thereof) are inherently difficult to predict, especially in the early stages of proceedings. Even if a loss is probable, due to many complex factors, such as speed of discovery and the timing of court decisions or rulings, a loss or range of loss might not be reasonably estimated until the later stages of the proceeding. As of December 31, 2016, our aggregate accruals for legal loss contingencies and regulatory matters totaled approximately $90 million (excluding amounts relating to client reimbursements in connection with errors in invoicing certain of our Investment Servicing clients, described below). To the extent that we have established accruals in our consolidated statement of condition for probable loss contingencies, such accruals may not be sufficient to cover our ultimate financial exposure associated with any settlements or judgments. We may be subject to proceedings in the future that, if adversely resolved, would have a material adverse effect on our businesses or on our future consolidated financial statements. Except where otherwise noted below, we have not established accruals with respect to the claims discussed and do not believe that potential exposure is probable and can be reasonably estimated. The following discussion provides information with respect to significant legal and regulatory matters. Foreign Exchange In 2016, we settled our previously disclosed litigation and governmental investigations regarding our FX execution service that we refer to as indirect FX. Such settlements were satisfied from the previously established reserves. Transition Management In January 2014, we entered into a settlement with the FCA, pursuant to which we paid a fine of £22.9 million (approximately $37.8 million ), as a result of our having charged six clients of our U.K. transition management business during 2010 and 2011 amounts in excess of the contractual terms. The SEC and the DOJ opened separate investigations into this matter. In April 2016, the U.S. Attorney’s office in Boston charged two former employees in our transition management business with criminal fraud in connection with their alleged role in this matter, and, in May 2016, the SEC commenced a parallel civil enforcement proceeding against one of these individuals. On January 18, 2017, we announced that we had entered into a settlement agreement with the DOJ and the United States Attorney for the District of Massachusetts to resolve their investigation. Under the terms of the agreement, we, among other things, paid a fine of $32.3 million and entered into a deferred prosecution agreement. Under the deferred prosecution agreement, we agreed to retain an independent compliance consultant and compliance monitor for a term of three years (subject to extension) which will, among other things, evaluate the effectiveness of our compliance controls and business ethics and make related recommendations. As previously disclosed, we are also in discussions with the SEC Staff regarding a resolution of their investigation, and have reached an agreement in principle with the Staff of the SEC to pay a penalty of $32.3 million (equal to the fine being paid to the DOJ). Resolution of the matter is subject to completion of negotiations with the SEC Staff on other terms of the settlement, followed by review and consideration by the SEC. As of December 31, 2016 we had accrued $65 million with respect to the DOJ and the SEC investigations, which includes $23 million accrued in the fourth quarter. GovEx We are cooperating in an ongoing inquiry by the SEC relating to the GovEx electronic trading platform, which was offered and operated by State Street Global Markets, LLC from September 2009 to July 2015. The subjects of the inquiry are our communications related to volume, pricing and functionalities of the platform. We are currently engaged in discussions with the Staff of the SEC concerning a possible resolution of this matter, and have reached an agreement in principle with the Staff to pay a penalty of $3 million . Resolution of the matter is subject to completion of negotiations with the SEC Staff on other terms of the settlement, followed by review and consideration by the SEC. As of December 31, 2016, we had accrued $3 million for this matter. Federal Reserve/Massachusetts Division of Banks Written Agreement On June 1, 2015, we entered into a written agreement with the Federal Reserve and the Massachusetts Division of Banks relating to deficiencies identified in our compliance programs with the requirements of the Bank Secrecy Act, AML regulations and U.S. economic sanctions regulations promulgated by OFAC. As part of this enforcement action, we are required to, among other things, implement improvements to our compliance programs and to retain an independent firm to conduct a review of account and transaction activity covering a prior three-month period to evaluate whether any suspicious activity not previously reported should have been identified and reported in accordance with applicable regulatory requirements. To the extent deficiencies in our historical reporting are identified as a result of the transaction review or if we fail to comply with the terms of the written agreement, we may become subject to fines and other regulatory sanctions, which may have a material adverse effect on us. Invoicing Matter In December 2015, we announced a review of the manner in which we invoiced certain expenses to some of our Investment Servicing clients, primarily in the United States, during an 18-year period going back to 1998, and our determination that we had incorrectly invoiced clients for certain expenses. We informed our clients in December 2015 that we will pay to them the amounts we concluded were incorrectly invoiced to them, plus interest. We currently expect to pay at least $340 million (including interest), in connection with that review, which is ongoing. We are implementing enhancements to our billing processes, and we are reviewing the conduct of our employees and have taken appropriate steps to address conduct inconsistent with our standards, including, in some cases, termination of employment. We are also evaluating other billing practices relating to our Investment Servicing clients, including calculation of asset-based fees. We have received a purported class action demand letter alleging that our invoicing practices were unfair and deceptive under Massachusetts law. A class of customers, or particular customers, may assert that we have not paid to them all amounts incorrectly invoiced, and may seek double or treble damages under Massachusetts law. We are also responding to requests for information from, and are cooperating with investigations by, governmental authorities on these matters, including the civil and criminal divisions of the DOJ, the SEC, the Department of Labor and the Massachusetts Attorney General, which could result in significant fines or other sanctions, civil and criminal, against us. The severity of such fines or other sanctions could take into account factors such as the amount and duration of our incorrect invoicing, the government’s assessment of the conduct of our employees, as well as prior conduct such as that which resulted in our recent deferred prosecution agreement in connection with transition management services and our recent settlement of civil claims regarding our indirect foreign exchange business. Any of the foregoing could have a material adverse effect on our reputation or business, including the imposition of restrictions on the operation of our business or a reduction in client demand. Resolution of these matters could also have a material adverse effect on our consolidated results of operations for the period or periods in which such matters are resolved or an accrual is determined to be required. No accrual, other than a reserve for client reimbursement, is reflected on our consolidated statement of condition as of December 31, 2016. In April 2016, the Massachusetts Secretary of State commenced an administrative enforcement proceeding against State Street Global Markets, LLC, alleging that our conduct concerning expense invoices caused State Street Global Markets, LLC to violate state law governing the securities industry by virtue of our alleged control of State Street Global Markets, LLC. The complaint sought to impose a censure, a fine and to provide for reimbursement or other relief. In December 2016, the proceeding was concluded pursuant to an agreement with the Secretary of State. Shareholder Litigation In January 2017, a State Street shareholder filed a purported class action complaint against the Company alleging that statements made by the Company in its annual reports for the 2011-15 period regarding its internal controls and procedures were misleading due to the omission of information regarding the Transition Management and Invoicing Matters discussed above. Income Taxes: In determining our provision for income taxes, we make certain judgments and interpretations with respect to tax laws in jurisdictions in which we have business operations. Because of the complex nature of these laws, in the normal course of our business, we are subject to challenges from U.S. and non-U.S. income tax authorities regarding the amount of income taxes due. These challenges may result in adjustments to the timing or amount of taxable income or deductions or the allocation of taxable income among tax jurisdictions. We recognize a tax benefit when it is more likely than not that our position will result in a tax deduction or credit. Additional information with respect to our provision for income taxes and tax benefits, including unrecognized tax benefits, is provided in Note 22. We are presently under audit by a number of tax authorities, including the Internal Revenue Service, which completed their field audit procedures on our U.S. income tax returns for the tax years 2012 and 2013. The earliest tax year open to examination in jurisdictions where we have material operations is 2010. Management believes that we have sufficiently accrued liabilities as of December 31, 2016 for tax exposures. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities We are involved, in the normal course of our business, with various types of special purpose entities, some of which meet the definition of VIEs. When evaluating a VIE for consolidation, we must determine whether or not we have a variable interest in the entity. Variable interests are investments or other interests that absorb portions of an entity’s expected losses or receive portions of the entity’s expected returns. If it is determined that State Street does not have a variable interest in the VIE, no further analysis is required and State Street does not consolidate the VIE. If State Street holds a variable interest in a VIE, we are required by U.S. GAAP to consolidate that VIE when we have a controlling financial interest in the VIE and therefore are deemed to be the primary beneficiary. State Street is determined to have a controlling financial interest in a VIE when it has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to that VIE. This determination is evaluated periodically as facts and circumstances change. Asset-Backed Investment Securities: We invest in various forms of asset-backed securities, which we carry in our investment securities portfolio. These asset-backed securities meet the U.S. GAAP definition of asset securitization entities, which are considered to be VIEs. We are not considered to be the primary beneficiary of these VIEs since we do not have control over their activities. Additional information about our asset-backed securities is provided in Note 3 . Tax-Exempt Investment Program: In the normal course of our business, we structure and sell certificated interests in pools of tax-exempt investment-grade assets, principally to our mutual fund clients. We structure these pools as partnership trusts, and the assets and liabilities of the trusts are recorded in our consolidated statement of condition as AFS investment securities and other short-term borrowings. As of December 31, 2016 and December 31, 2015 , we carried AFS investment securities, composed of securities related to state and political subdivisions, with a fair value of $1.35 billion and $2.10 billion , respectively, and other short-term borrowings of $1.16 billion and $1.75 billion , respectively, in our consolidated statement of condition in connection with these trusts. The interest revenue and interest expense generated by the investments and certificated interests, respectively, are recorded as components of net interest revenue when earned or incurred. We transfer assets to the trusts from our investment securities portfolio at adjusted book value, and the trusts finance the acquisition of these assets by selling certificated interests issued by the trusts to third-party investors and to State Street as residual holder. These transfers do not meet the de-recognition criteria defined by U.S. GAAP , and therefore, the assets continue to be recorded in our consolidated financial statements. The trusts had a weighted-average life of approximately 4.5 years as of December 31, 2016 , compared to approximately 5.4 years as of December 31, 2015 . Under separate legal agreements, we provide liquidity facilities to these trusts and, with respect to certain securities, letters of credit. As of December 31, 2016 , our commitments to the trusts under these liquidity facilities and letters of credit totaled $1.16 billion and $351 million , respectively, and none of the liquidity facilities were utilized. In the event that our obligations under these liquidity facilities are triggered, no material impact to our consolidated results of operations or financial condition is expected to occur, because the securities are already recorded at fair value in our consolidated statement of condition. In addition, neither creditors nor third-party investors in the trusts have any recourse to State Street’s general credit other than through the liquidity facilities and letters of credit noted above. Interests in Investment Funds: In the normal course of business, we manage various types of investment funds through SSGA in which our clients are investors, including sponsored investment funds and other similar investment structures. Substantially all of our assets under management are contained within such funds. The services we provide to these funds generate management fee revenue. From time to time, we may invest cash in the funds in order for the funds to establish a performance history for newly-launched strategies, referred to as seed capital, or for other purposes. With respect to our interests in funds that meet the definition of a VIE, a primary beneficiary assessment is performed to determine if we have a controlling financial interest. As part of our assessment, we consider all the facts and circumstances regarding the terms and characteristics of the variable interest(s), the design and characteristics of the fund and the other involvements of the enterprise with the fund. Upon consolidation of certain funds, we retain the specialized investment company accounting rules followed by the underlying funds. All of the underlying investments held by such consolidated funds are carried at fair value, with corresponding changes in the investments’ fair values reflected in trading services revenue in our consolidated statement of income. When we no longer control these funds due to a reduced ownership interest or other reasons, the funds are de-consolidated and accounted for under another accounting method if we continue to maintain investments in the funds. As of December 31, 2016 , we have no consolidated funds. As of December 31, 2015 , the aggregate assets and liabilities of our consolidated funds totaled $321 million and $228 million , respectively. Our conclusion to consolidate a fund may vary from period to period, most commonly as a result of fluctuation in our ownership interest as a result of changes in the number of fund shares held by either us or by third parties. Given that the funds follow specialized investment company accounting rules which prescribe fair value, a de-consolidation generally would not result in gains or losses for us. The net assets of any consolidated fund are solely available to settle the liabilities of the fund and to settle any investors’ ownership redemption requests, including any seed capital invested in the fund by State Street. We are not contractually required to provide financial or any other support to any of our funds. In addition, neither creditors nor equity investors in the funds have any recourse to State Street’s general credit. As of December 31, 2016 and December 31, 2015 , we managed certain funds, considered VIEs, in which we held a variable interest but for which we were not deemed to be the primary beneficiary. Our potential maximum loss exposure related to these unconsolidated funds totaled $121 million and $93 million as of December 31, 2016 and December 31, 2015 , respectively, and represented the carrying value of our investments, which are recorded in either AFS investment securities or other assets in our consolidated statement of condition. The amount of loss we may recognize during any period is limited to the carrying amount of our investments in the unconsolidated funds. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Preferred Stock: The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of December 31, 2016 : Issuance Date Depositary Shares Issued Ownership Interest per Depositary Share Liquidation Preference Per Share Liquidation Preference Per Depositary Share Net Proceeds of Offering (In millions) Redemption Date (1) Preferred Stock (2) : Series C August 2012 20,000,000 1/4,000th $ 100,000 $ 25 $ 488 September 15, 2017 Series D February 2014 30,000,000 1/4,000th 100,000 25 742 March 15, 2024 Series E November 2014 30,000,000 1/4,000th 100,000 25 728 December 15, 2019 Series F May 2015 750,000 1/100th 100,000 1,000 742 September 15, 2020 Series G April 2016 20,000,000 1/4,000th 100,000 25 493 March 15, 2026 (1) On the redemption date, or any dividend declaration date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. (2) The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated: Years Ended December 31, 2016 2015 Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C $ 5,250 $ 1.32 $ 26 $ 5,250 $ 1.32 $ 26 Series D 5,900 1.48 44 5,900 1.48 44 Series E 6,000 1.52 45 6,333 1.60 48 Series F 5,250 52.50 40 1,663 16.63 12 Series G 3,626 0.90 18 — — — Total $ 173 $ 130 In January 2017 , we declared dividends on our Series C, D, E, F and G preferred stock of approximately $1,313 , $1,475 , $1,500 , $2,625 and $1,338 , respectively, per share, or approximately $0.33 , $0.37 , $0.38 , $26.26 and $0.33 , respectively, per depositary share. These dividends total approximately $6 million , $11 million , $11 million , $20 million and $7 million on our Series C, D, E, F and G preferred stock, respectively, which will be paid in March 2017. Common Stock: In July 2016, our Board approved a common stock purchase program authorizing the purchase of up to $1.4 billion of our common stock through June 30, 2017 (the 2016 Program). In March 2015, our Board approved a common stock purchase program authorizing the purchase of up to $1.8 billion of our common stock through June 30, 2016 (the 2015 Program). The table below presents the activity under both the 2016 Program and the 2015 Program during the year ended December 31, 2016 . Shares Purchased Average Cost per Share Total Purchased 2016 Program 9.0 $ 72.66 $ 650 2015 Program 12.1 58.83 715 Total 21.1 $ 64.70 $ 1,365 The table below presents the dividends declared on common stock for the periods indicated: Years Ended December 31, Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) 2016 2015 Common Stock $ 1.44 $ 559 $ 1.32 $ 536 Accumulated Other Comprehensive Income (Loss): The following table presents the after-tax components of AOCI as of December 31: (In millions) 2016 2015 2014 Net unrealized gains on cash flow hedges $ 229 $ 293 $ 276 Net unrealized gains (losses) on available-for-sale securities portfolio (225 ) 9 273 Net unrealized gains (losses) related to reclassified available-for-sale securities 25 (28 ) 39 Net unrealized gains (losses) on available-for-sale securities (200 ) (19 ) 312 Net unrealized losses on available-for-sale securities designated in fair value hedges (86 ) (109 ) (121 ) Other-than-temporary impairment on available-for-sale securities related to factors other than credit — — 1 Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries 95 (14 ) (14 ) Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (9 ) (16 ) (29 ) Net unrealized losses on retirement plans (194 ) (183 ) (272 ) Foreign currency translation (1,875 ) (1,394 ) (660 ) Total $ (2,040 ) $ (1,442 ) $ (507 ) The following table presents changes in AOCI by component, net of related taxes, for the periods indicated: (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2014 $ 276 $ 192 $ (14 ) $ (29 ) $ (272 ) $ (660 ) $ (507 ) Other comprehensive income (loss) before reclassifications 20 (314 ) — 15 1 (734 ) (1,012 ) Amounts reclassified into (out of) earnings (3 ) (6 ) — (2 ) 88 — 77 Other comprehensive income (loss) 17 (320 ) — 13 89 (734 ) (935 ) Balance as of December 31, 2015 $ 293 $ (128 ) $ (14 ) $ (16 ) $ (183 ) $ (1,394 ) $ (1,442 ) Other comprehensive income (loss) before reclassifications (64 ) (164 ) 109 8 — (478 ) (589 ) Amounts reclassified into (out of) earnings — 6 — (1 ) (11 ) (3 ) (9 ) Other comprehensive income (loss) (64 ) (158 ) 109 7 (11 ) (481 ) (598 ) Balance as of December 31, 2016 $ 229 $ (286 ) $ 95 $ (9 ) $ (194 ) $ (1,875 ) $ (2,040 ) The following table presents after-tax reclassifications into earnings for the periods indicated: Years Ended December 31, 2016 2015 (In millions) Amounts Reclassified into (out of) Earnings Affected Line Item in Consolidated Statement of Income Cash flow hedges: Interest-rate contracts, net of related taxes of $0 and $2, respectively $ — $ (3 ) Net interest revenue Available-for-sale securities: Net realized gains from sales of available-for-sale securities, net of related taxes of ($4) and $1, respectively 6 (6 ) Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $1 and $0, respectively (1 ) (2 ) Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of ($1) and ($51), respectively (11 ) 88 Compensation and employee benefits expenses Foreign currency translation: Sales of non-U.S. entities, net of related taxes of ($2) and $0, respectively (3 ) — Processing fees and other revenue Total reclassifications into (out of) AOCI $ (9 ) $ 77 |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Regulatory Capital We are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum regulatory capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial condition. Under current regulatory capital adequacy guidelines, we must meet specified capital requirements that involve quantitative measures of our consolidated assets, liabilities and off-balance sheet exposures calculated in conformity with regulatory accounting practices. Our capital components and their classifications are subject to qualitative judgments by regulators about components, risk weightings and other factors. As required by the Dodd-Frank Act, State Street and State Street Bank, as advanced approaches banking organizations, are subject to a permanent "capital floor" in the calculation and assessment of their regulatory capital adequacy by U.S. banking regulators. Beginning on January 1, 2015, we were required to calculate our risk-based capital ratios using both the advanced approaches and the standardized approach. As a result, from January 1, 2015 going forward, our risk-based capital ratios for regulatory assessment purposes are the lower of each ratio calculated under the standardized approach and the advanced approaches. The methods for the calculation of our and State Street Bank's risk-based capital ratios will change as the provisions of the Basel III final rule related to the numerator (capital) and denominator (risk-weighted assets) are phased in, and as we begin calculating our risk-weighted assets using the advanced approaches. These ongoing methodological changes will result in differences in our reported capital ratios from one reporting period to the next that are independent of applicable changes to our capital base, our asset composition, our off-balance sheet exposures or our risk profile. As of December 31, 2016 , State Street and State Street Bank exceeded all regulatory capital adequacy requirements to which they were subject. As of December 31, 2016 , State Street Bank was categorized as “well capitalized” under the applicable regulatory capital adequacy framework, and exceeded all “well capitalized” ratio guidelines to which it was subject. Management believes that no conditions or events have occurred since December 31, 2016 that have changed the capital categorization of State Street Bank. The following table presents the regulatory capital structure, total risk-weighted assets, related regulatory capital ratios and the minimum required regulatory capital ratios for State Street and State Street Bank as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III final rule are phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table. State Street State Street Bank (In millions) Basel III Advanced Approaches December 31, 2016 (1) Basel III Standardized Approach December 31, 2016 (2) Basel III Advanced Approaches December 31, 2015 (1) Basel III Standardized Approach December 31, 2015 (2) Basel III Advanced Approaches December 31, 2016 (1) Basel III Standardized Approach December 31, 2016 (2) Basel III Advanced Approaches December 31, 2015 (1) Basel III Standardized Approach December 31, 2015 (2) Common shareholders' equity: Common stock and related surplus $ 10,286 $ 10,286 $ 10,250 $ 10,250 $ 11,376 $ 11,376 $ 10,938 $ 10,938 Retained earnings 17,459 17,459 16,049 16,049 12,285 12,285 10,655 10,655 Accumulated other comprehensive income (loss) (1,936 ) (1,936 ) (1,422 ) (1,422 ) (1,648 ) (1,648 ) (1,230 ) (1,230 ) Treasury stock, at cost (7,682 ) (7,682 ) (6,457 ) (6,457 ) — — — — Total 18,127 18,127 18,420 18,420 22,013 22,013 20,363 20,363 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (3) (6,348 ) (6,348 ) (5,927 ) (5,927 ) (6,060 ) (6,060 ) (5,631 ) (5,631 ) Other adjustments (155 ) (155 ) (60 ) (60 ) (148 ) (148 ) (85 ) (85 ) Common equity tier 1 capital 11,624 11,624 12,433 12,433 15,805 15,805 14,647 14,647 Preferred stock 3,196 3,196 2,703 2,703 — — — — Trust preferred capital securities subject to phase-out from tier 1 capital — — 237 237 — — — — Other adjustments (103 ) (103 ) (109 ) (109 ) — — — — Tier 1 capital 14,717 14,717 15,264 15,264 15,805 15,805 14,647 14,647 Qualifying subordinated long-term debt 1,172 1,172 1,358 1,358 1,179 1,179 1,371 1,371 Trust preferred capital securities phased out of tier 1 capital — — 713 713 — — — — ALLL and other 19 77 12 66 15 77 8 66 Other adjustments 1 1 2 2 — — — — Total capital $ 15,909 $ 15,967 $ 17,349 $ 17,403 $ 16,999 $ 17,061 $ 16,026 $ 16,084 Risk-weighted assets: Credit risk $ 50,900 $ 98,125 $ 51,733 $ 93,515 $ 47,383 $ 94,413 $ 47,677 $ 89,164 Operational risk (4) 44,579 NA 43,882 NA 44,043 NA 43,324 NA Market risk (5) 3,822 1,751 3,937 2,378 3,822 1,751 3,939 2,378 Total risk-weighted assets $ 99,301 $ 99,876 $ 99,552 $ 95,893 $ 95,248 $ 96,164 $ 94,940 $ 91,542 Adjusted quarterly average assets $ 226,310 $ 226,310 $ 221,880 $ 221,880 $ 222,584 $ 222,584 $ 217,358 $ 217,358 Capital Ratios: 2016 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (6) 2015 Minimum Requirements (7) Common equity tier 1 capital 5.5 % 4.5 % 11.7 % 11.6 % 12.5 % 13.0 % 16.6 % 16.4 % 15.4 % 16.0 % Tier 1 capital 7.0 6.0 14.8 14.7 15.3 15.9 16.6 16.4 15.4 16.0 Total capital 9.0 8.0 16.0 16.0 17.4 18.1 17.8 17.7 16.9 17.6 Tier 1 leverage 4.0 4.0 6.5 6.5 6.9 6.9 7.1 7.1 6.7 6.7 NA: Not applicable. (1) Common equity tier 1 capital, tier 1 capital and total capital ratios as of December 31, 2016 and December 31, 2015 were calculated in conformity with the advanced approaches provisions of the Basel III final rule. Tier 1 leverage ratio as of December 31, 2016 and December 31, 2015 were calculated in conformity with the Basel III final rule. (2) Common equity tier 1 capital, tier 1 capital and total capital ratios as of December 31, 2016 and December 31, 2015 were calculated in conformity with the standardized approach provisions of the Basel III final rule. Tier 1 leverage ratio as of December 31, 2016 and December 31, 2015 were calculated in conformity with the Basel III final rule. (3) Amounts for State Street and State Street Bank as of December 31, 2016 consisted of goodwill, net of associated deferred tax liabilities, and 60% of other intangible assets, net of associated deferred tax liabilities. Amounts for State Street and State Street Bank as of December 31, 2015 consisted of goodwill, net of deferred tax liabilities and 40% of other intangible assets, net of associated deferred tax liabilities. Intangible assets, net of associated deferred tax liabilities is phased in as a deduction from capital, in conformity with the Basel III final rule. (4) Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational risk RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs. (5) Market risk risk-weighted assets reported in conformity with the Basel III advanced approaches included a CVA which reflected the risk of potential fair-value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts. The CVA was not provided for in the final market risk capital rule; however, it was required by the advanced approaches provisions of the Basel III final rule. We used a simple CVA approach in conformity with the Basel III advanced approaches. (6) Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2016 . (7) Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2015 . |
Net Interest Revenue
Net Interest Revenue | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Net Interest Revenue | Net Interest Revenue The following table presents the components of interest revenue and interest expense, and related net interest revenue, for the periods indicated: Years Ended December 31, (In millions) 2016 2015 2014 Interest revenue: Deposits with banks $ 126 $ 208 $ 196 Investment securities: U.S. Treasury and federal agencies 821 735 672 State and political subdivisions 224 227 231 Other investments 756 934 1,241 Securities purchased under resale agreements 146 62 38 Loans and leases 378 311 266 Other interest-earning assets 61 11 8 Total interest revenue 2,512 2,488 2,652 Interest expense: Deposits 85 97 99 Securities sold under repurchase agreements 1 — — Short-term borrowings 7 7 5 Long-term debt 260 250 245 Other interest-bearing liabilities 75 46 43 Total interest expense 428 400 392 Net interest revenue $ 2,084 $ 2,088 $ 2,260 |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation We record compensation expense for equity-based awards, such as restricted stock, deferred stock and performance awards, based on the closing price of our common stock on the date of grant, adjusted if appropriate based on the award’s eligibility to receive dividends. The fair value of stock options and stock appreciation rights is determined using the Black-Scholes valuation model. Compensation expense related to equity-based awards with service-only conditions and terms that provide for a graded vesting schedule is recognized on a straight-line basis over the required service period for the entire award. Compensation expense related to equity-based awards with performance conditions and terms that provide for a graded vesting schedule is recognized over the requisite service period for each separately vesting tranche of the award, and is based on the probable outcome of the performance conditions at each reporting date. Compensation expense is adjusted for assumptions with respect to the estimated amount of awards that will be forfeited prior to vesting, and for employees who have met certain retirement eligibility criteria. Compensation expense for common stock awards granted to employees meeting early retirement eligibility criteria is fully expensed on the grant date. Dividend equivalents for certain equity-based awards are paid on stock units on a current basis prior to vesting and distribution. As of December 31, 2016 , a cumulative total of 65.7 million shares had been awarded under the 2006 Equity Incentive Plan, or 2006 Plan, compared with cumulative totals of 60.9 million shares and 56.9 million shares as of December 31, 2015 and 2014 , respectively. The 2006 Plan allows for shares withheld in payment of the exercise price of an award or in satisfaction of tax withholding requirements, shares forfeited due to employee termination, shares expired under options awards, or shares not delivered when performance conditions have not been met, to be added back to the pool of shares available for awards. From inception to December 31, 2016 , 23.7 million shares had been awarded under the 2006 Plan but not delivered, and have become available for reissue. A total of 18.5 million shares are available for future issuance under the 2006 Plan. The exercise price of non-qualified and incentive stock options and stock appreciation rights may not be less than the fair value of such shares on the date of grant. Stock options and stock appreciation rights granted under the 1997 Equity Incentive Plan, or 1997 Plan, and the 2006 Plan, collectively the Plans, generally vest over four years and expire no later than ten years from the date of grant. No common stock options or stock appreciation rights have been granted since 2009. For restricted stock awards granted under the Plans, common stock is issued at the time of grant and recipients have dividend and voting rights. In general, these grants vest over three to four years. As of December 31, 2016 there are no outstanding stock options or restricted stock awards. For deferred stock awards granted under the Plans, no common stock is issued at the time of grant and the award does not possess dividend and voting rights. Generally, these grants vest over one to four years. Performance awards granted are earned over a performance period based on the achievement of defined goals, generally over three years. Payment for performance awards is made in shares of our common stock equal to its fair market value per share, based on the performance of certain financial ratios, after the conclusion of each performance period. Beginning with 2012, malus-based forfeiture provisions were included in deferred stock awards granted to employees identified as “material risk-takers,” as defined by management. These malus-based forfeiture provisions provide for the reduction or cancellation of unvested deferred compensation, such as deferred stock awards and performance based awards, if it is determined that a material risk-taker made risk-based decisions that exposed State Street to inappropriate risks that resulted in a material unexpected loss at the business-unit, line-of-business or corporate level. In addition, awards granted to certain of our senior executives, as well as awards granted to individuals in certain jurisdictions, may be subject to recoupment after vesting (if applicable) and delivery to the individual in specified circumstances generally relating to fraud or willful misconduct by the individual that results in material harm to us or a material financial restatement. Compensation expense related to stock options, stock appreciation rights, restricted stock awards, deferred stock awards and performance awards, which we record as a component of compensation and employee benefits expense in our consolidated statement of income, was $268 million , $319 million and $329 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Such expense for 2016 , 2015 and 2014 excluded $9 million , $10 million and $20 million , respectively, associated with acceleration of expense in connection with targeted staff reductions. This expense was included in the severance-related portion of the associated restructuring charges recorded in each respective year. The following table presents information about the Plans as of December 31, 2016 , and related activity during the years indicated: Shares (In thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In years) Total Intrinsic Value (In millions) Stock Options and Stock Appreciation Rights: Outstanding as of December 31, 2014 1,861 $ 74.12 Exercised (398 ) 62.63 Forfeited or expired (257 ) 81.71 Outstanding as of December 31, 2015 1,206 76.29 Exercised (227 ) 70.59 Forfeited or expired (24 ) 81.71 Outstanding and exercisable as of December 31, 2016 (1) 955 $ 77.52 0.7 $ 2.6 (1) Consists of zero shares subject to stock options and 955 thousand stock appreciation rights. The total intrinsic value of options and stock appreciation rights exercised during the years ended December 31, 2016 , 2015 and 2014 was $1 million , $5 million and $14 million , respectively. As of December 31, 2016 , there was no unrecognized compensation cost related to stock options and stock appreciation rights. The following tables present activity related to other common stock awards during the years indicated: Shares (In thousands) Weighted-Average Grant Date Fair Value Restricted Stock Awards: Outstanding as of December 31, 2014 31 $ 41.27 Vested (31 ) 41.22 Forfeited — — Outstanding as of December 31, 2015 (1) — $ — (1) No restricted stock awards were issued or outstanding in 2016 . The total fair value of restricted stock awards vested for the years ended December 31, 2015 and 2014 , based on the weighted average grant date fair value in each respective year, was $1 million and $54 million , respectively. As of December 31, 2015 , all restricted stock awards had vested, and no new restricted stock awards were granted in 2016. Shares (In thousands) Weighted-Average Grant Date Fair Value Deferred Stock Awards: Outstanding as of December 31, 2014 12,431 $ 51.47 Granted 3,461 72.98 Vested (6,910 ) 49.17 Forfeited (246 ) 59.22 Outstanding as of December 31, 2015 8,736 61.59 Granted 4,336 52.49 Vested (4,897 ) 56.18 Forfeited (361 ) 60.12 Outstanding as of December 31, 2016 7,814 $ 60.01 The total fair value of deferred stock awards vested for the years ended December 31, 2016 , 2015 and 2014 , based on the weighted average grant date fair value in each respective year, was $275 million , $340 million and $310 million , respectively. As of December 31, 2016 , total unrecognized compensation cost related to deferred stock awards, net of estimated forfeitures, was $252 million , which is expected to be recognized over a weighted-average period of 2.4 years. Shares (In thousands) Weighted-Average Grant Date Fair Value Performance Awards: Outstanding as of December 31, 2014 1,627 $ 49.46 Granted 400 72.24 Forfeited (1 ) 41.02 Paid out (861 ) 45.09 Outstanding as of December 31, 2015 1,165 60.45 Granted 506 50.81 Forfeited — — Paid out (424 ) 49.27 Outstanding as of December 31, 2016 1,247 $ 60.37 The total fair value of performance awards paid out for the years ended December 31, 2016 , 2015 and 2014 , based on the weighted average grant date fair value in each respective year, was $21 million , $39 million and $44 million , respectively. As of December 31, 2016 , total unrecognized compensation cost related to performance awards, net of estimated forfeitures, was $3.9 million , which is expected to be recognized over a weighted-average period of 2.1 years. We utilize either treasury shares or authorized but unissued shares to satisfy the issuance of common stock under our equity incentive plans. We do not have a specific policy concerning purchases of our common stock to satisfy stock issuances, including exercises of stock options. We have a general policy concerning purchases of our common stock to meet issuances under our employee benefit plans, including option exercises and other corporate purposes. Various factors determine the amount and timing of our purchases of our common stock, including regulatory reviews and approvals or non-objections, our regulatory capital requirements, the number of shares we expect to issue under employee benefit plans, market conditions (including the trading price of our common stock), and legal considerations. These factors can change at any time, and the number of shares of common stock we will purchase or when we will purchase them cannot be assured. See Note 15 for further information on our common stock purchase program |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | Employee Benefits Defined Benefit Pension and Other Post-Retirement Benefit Plans: State Street Bank and certain of its U.S. subsidiaries participate in a non-contributory, tax-qualified defined benefit pension plan. The U.S. defined benefit pension plan was frozen as of December 31, 2007 and no new employees were eligible to participate after that date. State Street has agreed to contribute sufficient amounts as necessary to meet the benefits paid to plan participants and to fund the plan’s service cost, plus interest. U.S. employee account balances earn annual interest credits until the employee begins receiving benefits. Non-U.S. employees participate in local defined benefit plans which are funded as required in each local jurisdiction. In addition to the defined benefit pension plans, we have non-qualified unfunded SERP s that provide certain officers with defined pension benefits in excess of allowable qualified plan limits. State Street Bank and certain of its U.S. subsidiaries also participate in a post-retirement plan that provides health care benefits for certain retired employees. The total expense for these tax-qualified and non-qualified plans was $16 million , $46 million and $32 million in 2016 , 2015 and 2014 , respectively. We recognize the funded status of our defined benefit pension plans and other post-retirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, in the consolidated statement of position. The assets held by the defined benefit pension plans are largely made up of common, collective funds that are liquid and invest principally in U.S. equities and high-quality fixed income investments. The majority of these assets fall within Level 2 of the fair value hierarchy. The benefit obligations associated with our primary U.S. and non-U.S. defined benefit plans, non-qualified unfunded supplemental retirement plans and post-retirement plans were $1.23 billion , $136 million and $21 million , respectively, as of December 31, 2016 and $1.18 billion , $155 million and $30 million , respectively, as of December 31, 2015 . As the primary defined benefit plans are frozen, the benefit obligation will only vary over time as a result of changes in market interest rates, the life expectancy of the plan participants and payments made from the plans. The primary U.S. and non-U.S. defined benefit pension plans were underfunded by $32 million and $16 million as of December 31, 2016 and 2015 , respectively. The non-qualified supplemental retirement plans were underfunded by $136 million and $155 million as of December 31, 2016 and 2015 , respectively. The other post-retirement benefit plans were underfunded by $21 million and $30 million as of December 31, 2016 and 2015 , respectively. The underfunded status is included in other liabilities. Defined Contribution Retirement Plans: We contribute to employer-sponsored U.S. and non-U.S. defined contribution plans. Our contribution to these plans was $132 million , $130 million , and $147 million in 2016 , 2015 and 2014 , respectively. |
Occupancy Expense and Informati
Occupancy Expense and Information Systems and Communications Expense | 12 Months Ended |
Dec. 31, 2016 | |
Occupancy Expense and Information Systems and Communications Expense [Abstract] | |
Occupancy Expense and Information Systems and Communications Expense | Occupancy Expense and Information Systems and Communications Expense Occupancy expense and information systems and communications expense include depreciation of buildings, leasehold improvements, computer hardware and software, equipment, and furniture and fixtures. Total depreciation expense in 2016 , 2015 and 2014 was $472 million , $443 million and $417 million , respectively. We lease 1,025,000 square feet at One Lincoln Street, our headquarters building located in Boston, Massachusetts, and a related underground parking garage, under 20 -year, non-cancelable capital leases expiring in September 2023 . A portion of the lease payments is offset by subleases for approximately 127,000 square feet of the building. As of December 31, 2016 and 2015 , an aggregate net book value of $194 million and $231 million , respectively, related to the above-described capital leases was recorded in premises and equipment, with the related liability recorded in long-term debt, in our consolidated statement of condition. Capital lease asset amortization is recorded in occupancy expense on a straight-line basis in our consolidated statement of income over the respective lease term. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. In 2016 , 2015 and 2014 , interest expense related to these capital lease obligations, reflected in net interest revenue, was $22 million , $32 million and $38 million , respectively. As of December 31, 2016 and 2015 , accumulated amortization of capital lease assets was $365 million and $334 million , respectively. We have entered into non-cancelable operating leases for premises and equipment. Nearly all of these leases include renewal options. Costs related to operating leases for office space are recorded in occupancy expense. Costs related to operating leases for equipment are recorded in information systems and communications expense. Both are recorded on a straight-line basis. Total rental expense net of sublease revenue in 2016 , 2015 and 2014 amounted to $194 million , $190 million and $204 million , respectively. Total rental expense was reduced by sublease revenue of $4 million in both 2016 and 2015 , and $6 million in 2014 . The following table presents a summary of future minimum lease payments under non-cancelable capital and operating leases as of December 31, 2016 . Aggregate future minimum rental commitments have been reduced by aggregate sublease rental commitments of $43 million for capital leases and $16 million for operating leases. (In millions) Capital Leases Operating Leases Total 2017 $ 57 $ 205 $ 262 2018 53 185 238 2019 46 138 184 2020 45 123 168 2021 45 118 163 Thereafter 79 380 459 Total minimum lease payments 325 $ 1,149 $ 1,474 Less amount representing interest payments (76 ) Present value of minimum lease payments $ 249 Expenses The following table presents the components of other expenses for the periods indicated: Years Ended December 31, (In millions) 2016 2015 2014 Insurance $ 93 $ 126 $ 80 Regulatory fees and assessments 82 115 74 Litigation 50 422 173 Securities processing 42 79 68 Other 317 276 356 Total other expenses $ 584 $ 1,018 $ 751 Acquisition Costs We recorded acquisition costs of $69 million , $20 million and $58 million in 2016 , 2015 and 2014 , respectively. Costs incurred in 2016 include approximately $53 million related to our acquisition of GEAM on July 1, 2016. For further information on the GEAM acquisition, refer to Note 1. Restructuring Charges In the year ended December 31, 2016 , we recorded restructuring charges of $142 million related to State Street Beacon . The following table presents aggregate restructuring activity for the periods indicated. (In millions) Employee Real Estate Asset and Other Write-offs Total Balance at December 31, 2013 $ 52 $ 47 $ 7 $ 106 Accruals for Business Operations and IT 32 22 21 75 Payments and other adjustments (45 ) (46 ) (21 ) (112 ) Balance at December 31, 2014 $ 39 $ 23 $ 7 $ 69 Accruals for Business Operations and IT (5 ) (3 ) 13 5 Payments and other adjustments (25 ) (9 ) (17 ) (51 ) Balance at December 31, 2015 $ 9 $ 11 $ 3 $ 23 Accruals for Business Operations and IT (2 ) — — (2 ) Accruals for State Street Beacon 94 18 30 142 Payments and other adjustments (64 ) (12 ) (31 ) (107 ) Balance at December 31, 2016 $ 37 $ 17 $ 2 $ 56 |
Expenses
Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Other Expenses [Abstract] | |
Expenses | Occupancy Expense and Information Systems and Communications Expense Occupancy expense and information systems and communications expense include depreciation of buildings, leasehold improvements, computer hardware and software, equipment, and furniture and fixtures. Total depreciation expense in 2016 , 2015 and 2014 was $472 million , $443 million and $417 million , respectively. We lease 1,025,000 square feet at One Lincoln Street, our headquarters building located in Boston, Massachusetts, and a related underground parking garage, under 20 -year, non-cancelable capital leases expiring in September 2023 . A portion of the lease payments is offset by subleases for approximately 127,000 square feet of the building. As of December 31, 2016 and 2015 , an aggregate net book value of $194 million and $231 million , respectively, related to the above-described capital leases was recorded in premises and equipment, with the related liability recorded in long-term debt, in our consolidated statement of condition. Capital lease asset amortization is recorded in occupancy expense on a straight-line basis in our consolidated statement of income over the respective lease term. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. In 2016 , 2015 and 2014 , interest expense related to these capital lease obligations, reflected in net interest revenue, was $22 million , $32 million and $38 million , respectively. As of December 31, 2016 and 2015 , accumulated amortization of capital lease assets was $365 million and $334 million , respectively. We have entered into non-cancelable operating leases for premises and equipment. Nearly all of these leases include renewal options. Costs related to operating leases for office space are recorded in occupancy expense. Costs related to operating leases for equipment are recorded in information systems and communications expense. Both are recorded on a straight-line basis. Total rental expense net of sublease revenue in 2016 , 2015 and 2014 amounted to $194 million , $190 million and $204 million , respectively. Total rental expense was reduced by sublease revenue of $4 million in both 2016 and 2015 , and $6 million in 2014 . The following table presents a summary of future minimum lease payments under non-cancelable capital and operating leases as of December 31, 2016 . Aggregate future minimum rental commitments have been reduced by aggregate sublease rental commitments of $43 million for capital leases and $16 million for operating leases. (In millions) Capital Leases Operating Leases Total 2017 $ 57 $ 205 $ 262 2018 53 185 238 2019 46 138 184 2020 45 123 168 2021 45 118 163 Thereafter 79 380 459 Total minimum lease payments 325 $ 1,149 $ 1,474 Less amount representing interest payments (76 ) Present value of minimum lease payments $ 249 Expenses The following table presents the components of other expenses for the periods indicated: Years Ended December 31, (In millions) 2016 2015 2014 Insurance $ 93 $ 126 $ 80 Regulatory fees and assessments 82 115 74 Litigation 50 422 173 Securities processing 42 79 68 Other 317 276 356 Total other expenses $ 584 $ 1,018 $ 751 Acquisition Costs We recorded acquisition costs of $69 million , $20 million and $58 million in 2016 , 2015 and 2014 , respectively. Costs incurred in 2016 include approximately $53 million related to our acquisition of GEAM on July 1, 2016. For further information on the GEAM acquisition, refer to Note 1. Restructuring Charges In the year ended December 31, 2016 , we recorded restructuring charges of $142 million related to State Street Beacon . The following table presents aggregate restructuring activity for the periods indicated. (In millions) Employee Real Estate Asset and Other Write-offs Total Balance at December 31, 2013 $ 52 $ 47 $ 7 $ 106 Accruals for Business Operations and IT 32 22 21 75 Payments and other adjustments (45 ) (46 ) (21 ) (112 ) Balance at December 31, 2014 $ 39 $ 23 $ 7 $ 69 Accruals for Business Operations and IT (5 ) (3 ) 13 5 Payments and other adjustments (25 ) (9 ) (17 ) (51 ) Balance at December 31, 2015 $ 9 $ 11 $ 3 $ 23 Accruals for Business Operations and IT (2 ) — — (2 ) Accruals for State Street Beacon 94 18 30 142 Payments and other adjustments (64 ) (12 ) (31 ) (107 ) Balance at December 31, 2016 $ 37 $ 17 $ 2 $ 56 |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We use an asset-and-liability approach to account for income taxes. Our objective is to recognize the amount of taxes payable or refundable for the current year through charges or credits to the current tax provision, and to recognize deferred tax assets and liabilities for future tax consequences of temporary differences between amounts reported in our consolidated financial statements and their respective tax bases. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates. The effects of a tax position on our consolidated financial statements are recognized when we believe it is more likely than not that the position will be sustained. A valuation allowance is established if it is considered more likely than not that all or a portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction. The following table presents the components of income tax expense (benefit) for the years ended December 31 : (In millions) 2016 2015 2014 Current: Federal $ (14 ) $ 52 $ 59 State 30 92 39 Non-U.S. 320 342 257 Total current expense 336 486 355 Deferred: Federal (311 ) (39 ) 38 State 38 40 10 Non-U.S. (85 ) (169 ) 12 Total deferred (benefit) expense (358 ) (168 ) 60 Total income tax expense (benefit) $ (22 ) $ 318 $ 415 The following table presents a reconciliation of the U.S. statutory income tax rate to our effective tax rate based on income before income tax expense for the years ended December 31 : 2016 2015 2014 U.S. federal income tax rate 35.0 % 35.0 % 35.0 % Changes from statutory rate: State taxes, net of federal benefit 2.0 4.2 1.5 Tax-exempt income (6.1 ) (5.6 ) (5.1 ) Business tax credits (1) (13.6 ) (9.4 ) (6.8 ) Foreign tax differential (7.7 ) (9.6 ) (8.5 ) Foreign designated earnings (6.8 ) — — Foreign capital transactions (4.3 ) — — Tax refund — (2.8 ) — Litigation expense 1.4 2.7 1.3 Other, net (0.9 ) (0.7 ) (0.3 ) Effective tax rate (1.0 )% 13.8 % 17.1 % (1) Business tax credits include low-income housing, production and investment tax credits. The 2016 foreign designated earnings include the benefits attributable to the change in designation of certain of our foreign earnings as indefinitely invested overseas. The foreign capital transactions include the tax benefits from incremental foreign tax credits and a foreign affiliate tax loss. The increase in business tax credits is attributable to an increase in alternative energy investments. In 2015 we recognized benefits associated with the reduction of an Italian deferred tax liability and the approval of a tax refund for prior years, partially offset by a change in New York tax law. The amount of income tax expense (benefit) related to net gains (losses) from sales of investment securities was $4 million , $(3) million and $5 million in 2016 , 2015 and 2014 , respectively. Pre-tax income attributable to our operations located outside the U.S. was approximately $1.22 billion , $1.30 billion and $1.33 billion for 2016 , 2015 and 2014 , respectively. Pre-tax earnings of our non-U.S. subsidiaries are subject to U.S. income tax when effectively repatriated. As of December 31, 2016 , we have chosen to indefinitely reinvest approximately $5.5 billion of earnings of certain of our non-U.S. subsidiaries. No provision has been recorded for U.S. income taxes that could be incurred upon repatriation. As of December 31, 2016 , if such earnings had been repatriated to the U.S., we would have provided for approximately $1.1 billion of additional income tax expense. The following table presents significant components of our gross deferred tax assets and gross deferred tax liabilities as of December 31 : (In millions) 2016 2015 Deferred tax assets: Unrealized losses on investment securities, net $ 157 $ 57 Deferred compensation 285 167 Defined benefit pension plan 116 143 Restructuring charges and other reserves 199 383 Foreign currency translation 225 155 Tax credit carryforwards 425 — Other 105 32 Total deferred tax assets 1,512 937 Valuation allowance for deferred tax assets (66 ) (27 ) Deferred tax assets, net of valuation allowance $ 1,446 $ 910 Deferred tax liabilities: Leveraged lease financing $ 313 $ 334 Fixed and intangible assets 886 804 Non-U.S. earnings 164 265 Other 120 121 Total deferred tax liabilities $ 1,483 $ 1,524 Management considers the valuation allowance adequate to reduce the total deferred tax assets to an aggregate amount that will more likely than not be realized. Management has determined that a valuation allowance is not required for the remaining deferred tax assets because it is more likely than not that there is sufficient taxable income of the appropriate nature within the carryback and carryforward periods to realize these assets. As of December 31, 2016 , we had deferred tax assets associated with tax credit carryforwards of $425 million . Of the total tax credit carryforwards, $406 million expire through 2036 and the remaining do not expire. As of December 31, 2016 and 2015 , we had deferred tax assets associated with non-U.S. and state loss carryforwards of $46 million and $26 million , respectively, included in “other” in the table above. Of the total loss carryforwards of $46 million as of December 31, 2016 , $31 million do not expire, and the remaining $15 million expire through 2035 . The loss carryforwards have a valuation allowance of $38 million and $22 million for 2016 and 2015 . The following table presents activity related to unrecognized tax benefits as of December 31 : (In millions) 2016 2015 Beginning balance $ 63 $ 163 Decrease related to agreements with tax authorities (13 ) (122 ) Increase related to tax positions taken during current year 7 8 Increase related to tax positions taken during prior year 14 14 Ending balance $ 71 $ 63 The amount of unrecognized tax benefits that, if recognized, would reduce income tax expense and our effective tax rate was $63 million as of December 31, 2016 . Unrecognized tax benefits do not include accrued interest of approximately $5 million and $3 million as of December 31, 2016 and 2015 . It is reasonably possible that the unrecognized tax benefits could decrease by up to $14 million within the next 12 months due to the resolution of various audits, of which $5 million would reduce our income tax expense and our effective tax rate. Management believes that we have sufficient accrued liabilities as of December 31, 2016 for tax exposures and related interest expense. We recorded interest and penalties related to income taxes as a component of income tax expense. Income tax expense included related interest and penalties of approximately $2 million and $5 million in 2016 and 2015 , respectively. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic EPS is calculated pursuant to the “two-class” method, by dividing net income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted EPS is calculated pursuant to the two-class method, by dividing net income available to common shareholders by the total weighted-average number of common shares outstanding for the period plus the shares representing the dilutive effect of common stock options and other equity-based awards. The effect of common stock options and other equity-based awards is excluded from the calculation of diluted EPS in periods in which their effect would be anti-dilutive. The two-class method requires the allocation of undistributed net income between common and participating shareholders. Net income available to common shareholders, presented separately in our consolidated statement of income, is the basis for the calculation of both basic and diluted EPS. Participating securities are composed of unvested restricted stock, unvested and fully vested SERP shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings. The following table presents the computation of basic and diluted earnings per common share for the years indicated: Years Ended December 31, (Dollars in millions, except per share amounts) 2016 2015 2014 Net income $ 2,143 $ 1,980 $ 2,022 Less: Preferred stock dividends (173 ) (130 ) (61 ) Dividends and undistributed earnings allocated to participating securities (1) (2 ) (2 ) (3 ) Net income available to common shareholders $ 1,968 $ 1,848 $ 1,958 Average common shares outstanding (In thousands): Basic average common shares 391,485 407,856 424,223 Effect of dilutive securities: common stock options and common stock awards 4,605 5,782 7,784 Diluted average common shares 396,090 413,638 432,007 Anti-dilutive securities (2) 2,143 661 1,498 Earnings per Common Share: Basic $ 5.03 $ 4.53 $ 4.62 Diluted (3) 4.97 4.47 4.53 (1) Represents the portion of net income available to common equity allocated to participating securities, composed of fully vested deferred director stock and unvested restricted stock that contain non-forfeitable rights to dividends during the vesting period on a basis equivalent to dividends paid to common shareholders. (2) Represents common stock options and other equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive. Refer to Note 18 for additional information about equity-based awards. (3) Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method. |
Line of Business Information
Line of Business Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Line of Business Information | Line of Business Information Our operations are organized into two lines of business: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry. Investment Servicing provides services for U.S. mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations and endowments worldwide. Products include custody; product- and participant-level accounting; daily pricing and administration; master trust and master custody; record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance; our enhanced custody product, which integrates principal securities lending and custody; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk and compliance analytics to support institutional investors. We provide shareholder services, which include mutual fund and collective investment fund shareholder accounting, through 50% -owned affiliates, Boston Financial Data Services, Inc. and the International Financial Data Services group of companies. Investment Management, through SSGA, provides a broad array of investment management, investment research and investment advisory services to corporations, public funds and other sophisticated investors. SSGA offers passive and active asset management strategies across equity, fixed-income, alternative, multi-asset solutions (including OCIO) and cash asset classes. Products are distributed directly and through intermediaries using a variety of investment vehicles, including ETFs, such as the SPDR ® ETF brand. Our investment servicing strategy is to focus on total client relationships and the full integration of our products and services across our client base through cross-selling opportunities. In general, our clients will use a combination of services, depending on their needs, rather than one product or service. For instance, a custody client may purchase securities finance and cash management services from different business units. Products and services that we provide to our clients are parts of an integrated offering to these clients. We price our products and services on the basis of overall client relationships and other factors; as a result, revenue may not necessarily reflect the stand-alone market price of these products and services within the business lines in the same way it would for separate business entities. Our servicing and management fee revenue from the investment servicing and investment management business lines, including trading services and securities finance activities, represents approximately 75% to 80% of our consolidated total revenue. The remaining 20% to 25% is composed of processing fees and other revenue as well as net interest revenue, which is largely generated by our investment of client deposits, short-term borrowings and long-term debt in a variety of assets, and net gains (losses) related to investment securities. These other revenue types are generally fully allocated to, or reside in, Investment Servicing and Investment Management. Revenue and expenses are directly charged or allocated to our lines of business through management information systems. Assets and liabilities are allocated according to policies that support management’s strategic and tactical goals. Capital is allocated based on the relative risks and capital requirements inherent in each business line, along with management judgment. Capital allocations may not be representative of the capital that might be required if these lines of business were separate business entities. The following is a summary of our line-of-business results for the periods indicated. The “Other” column for the year ended December 31, 2016 included net costs of $199 million composed of the following - • Net acquisition and restructuring costs of $209 million ; and • Net severance cost adjustments associated with staffing realignment of $(10) million . The “Other” column for the year ended December 31, 2015 included net costs of $98 million composed of the following - • Net acquisition and restructuring costs of $25 million ; and • Net severance costs associated with staffing realignment of $73 million . The “Other” column for the year ended December 31, 2014 included net costs of $219 million composed of the following - • Net acquisition and restructuring costs of $133 million ; • Net severance costs associated with staffing realignment of $84 million ; and • Net provisions for litigation exposure and other costs of $2 million . The amounts in the “Other” columns were not allocated to State Street's business lines. Prior reported results reflect reclassifications, for comparative purposes, related to management changes in methodologies associated with allocations of revenue and expenses to lines-of-business in 2016 . Years Ended December 31, Investment Investment Other Total (Dollars in millions, except where otherwise noted) 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 Servicing fees $ 5,073 $ 5,153 $ 5,108 $ — $ — $ — $ — $ — $ — $ 5,073 $ 5,153 $ 5,108 Management fees — — — 1,292 1,174 1,207 — — — 1,292 1,174 1,207 Trading services 1,052 1,108 1,039 47 38 45 — — — 1,099 1,146 1,084 Securities finance 562 496 437 — — — — — — 562 496 437 Processing fees and other 105 325 179 (15 ) (16 ) (5 ) — — — 90 309 174 Total fee revenue 6,792 7,082 6,763 1,324 1,196 1,247 — — — 8,116 8,278 8,010 Net interest revenue 2,081 2,086 2,245 3 2 15 — — — 2,084 2,088 2,260 Gains (losses) related to investment securities, net 7 (6 ) 4 — — — — — — 7 (6 ) 4 Total revenue 8,880 9,162 9,012 1,327 1,198 1,262 — — — 10,207 10,360 10,274 Provision for loan losses 10 12 10 — — — — — — 10 12 10 Total expenses 6,660 6,990 6,648 1,218 962 960 199 98 219 8,077 8,050 7,827 Income before income tax expense $ 2,210 $ 2,160 $ 2,354 $ 109 $ 236 $ 302 $ (199 ) $ (98 ) $ (219 ) $ 2,120 $ 2,298 $ 2,437 Pre-tax margin 25 % 24 % 26 % 8 % 20 % 24 % 21 % 22 % 24 % Average assets (in billions) $ 225.3 $ 246.6 $ 234.2 $ 4.4 $ 3.9 $ 3.9 $ 229.7 $ 250.5 $ 238.1 |
Non-U.S. Activities
Non-U.S. Activities | 12 Months Ended |
Dec. 31, 2016 | |
Segments, Geographical Areas [Abstract] | |
Non-U.S. Activities | Non-U.S. Activities We define our non-U.S. activities as those revenue-producing business activities that arise from clients which are generally serviced or managed outside the U.S. Due to the integrated nature of our business, precise segregation of our U.S. and non-U.S. activities is not possible. Subjective estimates, assumptions and other judgments are applied to quantify the financial results and assets related to our non-U.S. activities, including our application of funds transfer pricing, our asset-and-liability management policies and our allocation of certain indirect corporate expenses. Management periodically reviews and updates its processes for quantifying the financial results and assets related to our non-U.S. activities. Non-U.S. revenue in 2016 , 2015 and 2014 included $1.05 billion , $938 million and $1.02 billion , respectively, in the U.K., primarily from our London operations. The following table presents our U.S. and non-U.S. financial results for the periods indicated: 2016 2015 2014 (In millions) Non-U.S. U.S. Total Non-U.S. U.S. Total Non-U.S. U.S. Total Total revenue $ 4,419 $ 5,788 $ 10,207 $ 4,428 $ 5,932 $ 10,360 $ 4,644 $ 5,630 $ 10,274 Income before income taxes 1,047 1,073 2,120 1,193 1,105 2,298 1,343 1,094 2,437 Non-U.S. assets were $79.1 billion and $78.1 billion as of December 31, 2016 and 2015 , respectively. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Financial Statements | Parent Company Financial Statements The following tables present the financial statements of the Parent Company without consolidation of its banking and non-banking subsidiaries, as of and for the years indicated: STATEMENT OF INCOME - PARENT COMPANY Years Ended December 31, (In millions) 2016 2015 2014 Cash dividends from consolidated banking subsidiary $ 640 $ 585 $ 1,470 Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities 75 171 138 Other, net 92 73 63 Total revenue 807 829 1,671 Interest expense 249 209 193 Other expenses 107 310 55 Total expenses 356 519 248 Income tax benefit (47 ) (186 ) (83 ) Income before equity in undistributed income of consolidated subsidiaries and unconsolidated entities 498 496 1,506 Equity in undistributed income of consolidated subsidiaries and unconsolidated entities: Consolidated banking subsidiary 1,629 1,384 360 Consolidated non-banking subsidiaries and unconsolidated entities 16 100 156 Net income $ 2,143 $ 1,980 $ 2,022 STATEMENT OF CONDITION - PARENT COMPANY December 31, (In millions) 2016 2015 Assets: Interest-bearing deposits with consolidated banking subsidiary $ 3,635 $ 5,735 Trading account assets 325 308 Investment securities available-for-sale 39 35 Investments in subsidiaries: Consolidated banking subsidiary 22,147 20,584 Consolidated non-banking subsidiaries 2,687 2,816 Unconsolidated entities 297 315 Notes and other receivables from: Consolidated banking subsidiary 2,743 1,558 Consolidated non-banking subsidiaries and unconsolidated entities 126 275 Other assets 461 478 Total assets $ 32,460 $ 32,104 Liabilities: Accrued expenses and other liabilities $ 514 $ 643 Long-term debt 10,727 10,326 Total liabilities 11,241 10,969 Shareholders’ equity 21,219 21,135 Total liabilities and shareholders’ equity $ 32,460 $ 32,104 STATEMENT OF CASH FLOWS - PARENT COMPANY Years Ended December 31, (In millions) 2016 2015 2014 Net cash provided by operating activities $ 417 $ 926 $ 1,767 Investing Activities: Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary 2,100 295 (1,610 ) Investments in consolidated banking and non-banking subsidiaries (7,600 ) (7,959 ) (1,142 ) Sale or repayment of investment in consolidated banking and non-banking subsidiaries 6,703 7,891 1,011 Business acquisitions (395 ) — — Net cash provided by (used in) investing activities 808 227 (1,741 ) Financing Activities: Net increase (decrease) in commercial paper — (2,485 ) 667 Proceeds from issuance of long-term debt, net of issuance costs 1,492 2,983 994 Payments for long-term debt (1,000 ) — (750 ) Proceeds from issuance of preferred stock, net of issuance costs 493 742 1,470 Proceeds from exercises of common stock options — 4 14 Purchases of common stock (1,365 ) (1,520 ) (1,650 ) Repurchases of common stock for employee tax withholding (122 ) (222 ) (232 ) Payments for cash dividends (723 ) (655 ) (539 ) Net cash used in financing activities (1,225 ) (1,153 ) (26 ) Net change — — — Cash and due from banks at beginning of year — — — Cash and due from banks at end of year $ — $ — $ — |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the Parent Company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank. We have two lines of business: Investment Servicing provides products and services including: custody; product- and participant-level accounting; daily pricing and administration; master trust and master custody; record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance; our enhanced custody product, which integrates principal securities lending and custody; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk and compliance analytics to support institutional investors. Investment Management , through SSGA, provides a broad array of investment management, investment research and investment advisory services to corporations, public funds and other sophisticated investors. SSGA offers passive and active asset management strategies across equity, fixed-income, alternative, multi-asset solutions (including OCIO) and cash asset classes. Products are distributed directly and through intermediaries using a variety of investment vehicles, including ETFs, such as the SPDR ® ETF brand. Basis of Presentation: The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the parent company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank. The accompanying Consolidated Financial Statements should be read in conjunction with the financial and risk factor information included in our 2015 Form 10-K, which we previously filed with the SEC. |
Consolidation | Consolidation: Our consolidated financial statements include the accounts of the Parent Company and its majority- and wholly-owned and otherwise controlled subsidiaries, including State Street Bank. All material inter-company transactions and balances have been eliminated. Certain previously reported amounts have been reclassified to conform to current-year presentation. We consolidate subsidiaries in which we exercise control. Investments in unconsolidated subsidiaries, recorded in other assets, generally are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the operations of the investee. For investments accounted for under the equity method, our share of income or loss is recorded in processing fees and other revenue in our consolidated statement of income. Investments not meeting the criteria for equity-method treatment are accounted for under the cost method of accounting. The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue, and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ. Our consolidated statement of condition as of December 31, 2015 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements. Acquisition |
Use of Estimates | Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue, and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. |
Foreign Currency Translations | Foreign Currency Translation: The assets and liabilities of our operations with functional currencies other than the U.S. dollar are translated at month-end exchange rates, and revenue and expenses are translated at rates that approximate average monthly exchange rates. Gains or losses from the translation of the net assets of subsidiaries with functional currencies other than the U.S. dollar, net of related taxes, are recorded in AOCI, a component of shareholders’ equity. |
Cash and Cash Equivalents | Cash and Cash Equivalents: For purposes of the consolidated statement of cash flows, cash and cash equivalents are defined as cash and due from banks. |
Interest-Bearing Deposits With Banks | Interest-Bearing Deposits with Banks: Interest-bearing deposits with banks generally consist of highly liquid, short-term investments maintained at the Federal Reserve Bank and other non-U.S. central banks with original maturities at the time of purchase of one month or less. |
Securities Purchased Under Resale Agreements And Securities Sold Under Repurchase Agreements | Securities Purchased Under Resale Agreements and Securities Sold Under Repurchase Agreements: Securities purchased under resale agreements and sold under repurchase agreements are treated as collateralized financing transactions, and are recorded in our consolidated statement of condition at the amounts at which the securities will be subsequently resold or repurchased, plus accrued interest. Our policy is to take possession or control of securities underlying resale agreements either directly or through agent banks, allowing borrowers the right of collateral substitution and/or short-notice |
Fee Revenue | Fees from investment servicing, investment management, securities finance, trading services and certain types of processing fees and other revenue are recorded in our consolidated statement of income based on estimates or specific contractual terms, including mutually agreed changes to terms, as transactions occur or services are rendered, provided that persuasive evidence exists, the price to the client is fixed or determinable and collectability is reasonably assured. Amounts accrued at period-end are recorded in accrued interest and fees receivable in our consolidated statement of condition. Performance fees generated by our investment management activities are recorded when earned, based on predetermined benchmarks associated with the applicable fund’s performance. |
Net Interest Revenue | Interest revenue on interest-earning assets and interest expense on interest-bearing liabilities are recorded in our consolidated statement of income as components of net interest revenue, and are generally based on the effective yield of the related financial asset or liability. |
Recent Accounting Developments | Recent Accounting Developments: Relevant standards that were recently issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The standard, and its related amendments, will replace existing revenue recognition standards and expand the disclosure requirements for revenue arrangements with customers. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). January 1, 2018 We are currently assessing the full impact of the revenue recognition standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption. The standard does not apply to revenue associated with financial instruments, including loans and securities, or revenue recognized under other U.S. GAAP standards. Therefore net interest revenue, securities gains/ losses, revenue related to derivative instruments are not impacted by the standard. Our implementation efforts include the scoping of material revenue streams into cohorts, analysis of underlying contracts for each cohort, business unit workshops to further assess specific contracts and products, and the development of updated disclosures. Based on our efforts to date, we expect both the timing and amount of our material revenue streams, including servicing fees, management fees, trading services, and securities finance to remain substantially unchanged as these revenues likely will continue to be recognized over time. Specifically, under the new standard we expect to recognize revenue related to these activities ratably over the term of the related agreements with customers as the customer simultaneously benefits from the services as they are performed. Due to the complexity of certain of our agreements, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms, and certain aspects may vary in some instances from recognition ratably over the contract term. While we have not yet identified any material changes, we continue to monitor industry progress and focus our assessment on areas such as any additional costs that may require capitalization under the new standard as well as assessing the impact of changes to principal and agent guidance. The new standard modified some of the principal and agent considerations which may result in changes to gross or net treatment of revenue and expenses but would not affect final net income. Although we currently expect no material changes to the timing or amount of revenue, we are still assessing the operational and disclosure impacts of each transition method. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements. Based on our initial assessments, we do not currently anticipate this standard to have a material impact on our consolidated financial statements due to the limited number of investments on our consolidated statement of condition that are within scope of the standard. ASU 2016-02, Leases (Topic 842) The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. January 1, 2019 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, primarily real estate leases for office space, as well as additional disclosure on all our lease obligations. ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force) The standard clarifies that the novation of a derivative contract that is part of a hedge accounting relationship does not automatically require a dedesignation of that hedge relationship. This may be applied on a prospective or modified retrospective basis. January 1, 2017 State Street will apply this standard prospectively as applicable, but we do not anticipate a material impact on our consolidated financial statements. Relevant standards that were recently issued but not yet adopted (continued) Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The standard simplifies the guidance related to stock compensation, including the accounting for income taxes by eliminating the windfall pool and requiring recognition of all excess tax benefits and deficiencies within the statement of income, as well as changes in the accounting for forfeitures, classification in the statement of cash flows and tax withholding requirements. January 1, 2017 We anticipate increased income statement volatility due to the recognition of all excess tax benefits and deficiencies within the consolidated statement of income. Income statement volatility will be driven by the number of shares vesting in any given period, and the change in share price between grant date and vesting. Directionally, increasing share prices from grant date to vesting date will result in lower income tax expense and higher net income. Upon adoption of the standard on January 1, 2017, excess tax benefits accumulated in surplus of approximately $352 million will be reversed through retained earnings. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities, and other financial assets, held at the reporting date to be measured based on historical experience, current conditions, and reasonable supportable forecasts. Credit losses on available for sale securities will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. January 1, 2020 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate a significant implementation effort to ensure that expected credit losses are calculated in accordance with the standard. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and are currently developing key accounting policies, evaluating existing credit loss models and processes and identifying a complete set of data requirements and sources. Based on our analysis to date, we expect a significant effort to develop new or modified credit loss models and that the timing of the recognition of credit losses will accelerate under the new standard. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) The standard amends the statement of cash flow guidance to address specific cash flow issues with the objective of reducing the existing diversity in practice. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements, however based on our current presentation we do not anticipate a significant change to our financial statement presentation of the statement of cash flows. Relevant standards that were adopted during the year ended December 31, 2016: We adopted ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, effective January 1, 2016. The implementation of the new standard did not result in any significant changes to our previous consolidation conclusions. We adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , effective January 1, 2016 with retrospective application for all prior periods presented. The implementation of this standard resulted in debt issuance costs of $38 million and $37 million as of December 31, 2016 and December 31, 2015, respectively, being netted against long-term debt in our consolidated statement of condition. Recent Accounting Developments: Relevant standards that were recently issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The standard, and its related amendments, will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements with customers. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. January 1, 2018 We are currently assessing the impact of the standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements. ASU 2016-02, Leases (Topic 842) The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. January 1, 2019 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, as well as additional disclosure on our leases. ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force) The standard clarifies that a change in the counterparty to a derivative instrument that is designated as a hedging instrument would result in dedesignation of the hedging relationship. This may be applied on a prospective or modified retrospective basis. January 1, 2017 Our adoption of the standard will not have a material impact on our consolidated financial statements. ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The standard simplifies the guidance related to stock compensation, including the accounting for income taxes by eliminating the windfall pool and requiring recognition of all excess tax benefits and deficiencies within the statement of income, as well as changes in the accounting for forfeitures, classification in the statement of cash flows and tax withholding requirements. January 1, 2017 We anticipate increased income statement volatility due to the recognition of all excess tax benefits and deficiencies within the statement of income. We do not anticipate early adoption of this standard. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard requires all expected credit losses for financial assets held at the reporting date to be measured based on historical experience, current conditions, and reasonable supportable forecasts. The standard will utilize forward-looking information to determine credit loss estimates. It will require immediate recognition of the full amount of credit losses that are expected for certain financial assets. January 1, 2020 We are currently assessing the impact of the standard on our consolidated financial statements. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) The standard amends the statement of cash flow guidance to address specific cash flow issues with the objective of reducing the existing diversity in practice. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements, however based on our current presentation we do not anticipate a significant change to our financial statement presentation of the statement of cash flows. Relevant standards that were adopted during the nine months ended September 30, 2016: We adopted ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, effective January 1, 2016. The implementation of the new standard did not result in any changes to our previous consolidation conclusions. We adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , effective January 1, 2016 with retrospective application for all prior periods presented. The implementation of this standard resulted in debt issuance costs of $38 million and $37 million as of September 30, 2016 and December 31, 2015, respectively, being netted against long-term debt in our consolidated statement of condition. |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Recent Accounting Developments | Recent Accounting Developments: Relevant standards that were recently issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The standard, and its related amendments, will replace existing revenue recognition standards and expand the disclosure requirements for revenue arrangements with customers. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). January 1, 2018 We are currently assessing the full impact of the revenue recognition standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption. The standard does not apply to revenue associated with financial instruments, including loans and securities, or revenue recognized under other U.S. GAAP standards. Therefore net interest revenue, securities gains/ losses, revenue related to derivative instruments are not impacted by the standard. Our implementation efforts include the scoping of material revenue streams into cohorts, analysis of underlying contracts for each cohort, business unit workshops to further assess specific contracts and products, and the development of updated disclosures. Based on our efforts to date, we expect both the timing and amount of our material revenue streams, including servicing fees, management fees, trading services, and securities finance to remain substantially unchanged as these revenues likely will continue to be recognized over time. Specifically, under the new standard we expect to recognize revenue related to these activities ratably over the term of the related agreements with customers as the customer simultaneously benefits from the services as they are performed. Due to the complexity of certain of our agreements, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms, and certain aspects may vary in some instances from recognition ratably over the contract term. While we have not yet identified any material changes, we continue to monitor industry progress and focus our assessment on areas such as any additional costs that may require capitalization under the new standard as well as assessing the impact of changes to principal and agent guidance. The new standard modified some of the principal and agent considerations which may result in changes to gross or net treatment of revenue and expenses but would not affect final net income. Although we currently expect no material changes to the timing or amount of revenue, we are still assessing the operational and disclosure impacts of each transition method. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements. Based on our initial assessments, we do not currently anticipate this standard to have a material impact on our consolidated financial statements due to the limited number of investments on our consolidated statement of condition that are within scope of the standard. ASU 2016-02, Leases (Topic 842) The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. January 1, 2019 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, primarily real estate leases for office space, as well as additional disclosure on all our lease obligations. ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force) The standard clarifies that the novation of a derivative contract that is part of a hedge accounting relationship does not automatically require a dedesignation of that hedge relationship. This may be applied on a prospective or modified retrospective basis. January 1, 2017 State Street will apply this standard prospectively as applicable, but we do not anticipate a material impact on our consolidated financial statements. Relevant standards that were recently issued but not yet adopted (continued) Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The standard simplifies the guidance related to stock compensation, including the accounting for income taxes by eliminating the windfall pool and requiring recognition of all excess tax benefits and deficiencies within the statement of income, as well as changes in the accounting for forfeitures, classification in the statement of cash flows and tax withholding requirements. January 1, 2017 We anticipate increased income statement volatility due to the recognition of all excess tax benefits and deficiencies within the consolidated statement of income. Income statement volatility will be driven by the number of shares vesting in any given period, and the change in share price between grant date and vesting. Directionally, increasing share prices from grant date to vesting date will result in lower income tax expense and higher net income. Upon adoption of the standard on January 1, 2017, excess tax benefits accumulated in surplus of approximately $352 million will be reversed through retained earnings. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities, and other financial assets, held at the reporting date to be measured based on historical experience, current conditions, and reasonable supportable forecasts. Credit losses on available for sale securities will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. January 1, 2020 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate a significant implementation effort to ensure that expected credit losses are calculated in accordance with the standard. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and are currently developing key accounting policies, evaluating existing credit loss models and processes and identifying a complete set of data requirements and sources. Based on our analysis to date, we expect a significant effort to develop new or modified credit loss models and that the timing of the recognition of credit losses will accelerate under the new standard. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) The standard amends the statement of cash flow guidance to address specific cash flow issues with the objective of reducing the existing diversity in practice. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements, however based on our current presentation we do not anticipate a significant change to our financial statement presentation of the statement of cash flows. Relevant standards that were recently issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The standard, and its related amendments, will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements with customers. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. January 1, 2018 We are currently assessing the impact of the standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption. ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements. ASU 2016-02, Leases (Topic 842) The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. January 1, 2019 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, as well as additional disclosure on our leases. ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force) The standard clarifies that a change in the counterparty to a derivative instrument that is designated as a hedging instrument would result in dedesignation of the hedging relationship. This may be applied on a prospective or modified retrospective basis. January 1, 2017 Our adoption of the standard will not have a material impact on our consolidated financial statements. ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The standard simplifies the guidance related to stock compensation, including the accounting for income taxes by eliminating the windfall pool and requiring recognition of all excess tax benefits and deficiencies within the statement of income, as well as changes in the accounting for forfeitures, classification in the statement of cash flows and tax withholding requirements. January 1, 2017 We anticipate increased income statement volatility due to the recognition of all excess tax benefits and deficiencies within the statement of income. We do not anticipate early adoption of this standard. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard requires all expected credit losses for financial assets held at the reporting date to be measured based on historical experience, current conditions, and reasonable supportable forecasts. The standard will utilize forward-looking information to determine credit loss estimates. It will require immediate recognition of the full amount of credit losses that are expected for certain financial assets. January 1, 2020 We are currently assessing the impact of the standard on our consolidated financial statements. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) The standard amends the statement of cash flow guidance to address specific cash flow issues with the objective of reducing the existing diversity in practice. January 1, 2018 We are currently assessing the impact of the standard on our consolidated financial statements, however based on our current presentation we do not anticipate a significant change to our financial statement presentation of the statement of cash flows. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair-Value Measurements on a Recurring Basis as of December 31, 2016 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 30 $ — $ — $ 30 Non-U.S. government securities 495 174 — 669 Other — 325 — 325 Total trading account assets 525 499 — 1,024 AFS Investment securities: U.S. Treasury and federal agencies: Direct obligations 3,824 439 — 4,263 Mortgage-backed securities — 13,257 — 13,257 Asset-backed securities: Student loans — 5,499 97 5,596 Credit cards — 1,351 — 1,351 Sub-prime — 272 — 272 Other (2) — — 905 905 Total asset-backed securities — 7,122 1,002 8,124 Non-U.S. debt securities: Mortgage-backed securities — 6,535 — 6,535 Asset-backed securities — 2,484 32 2,516 Government securities — 5,836 — 5,836 Other (3) — 5,365 248 5,613 Total non-U.S. debt securities — 20,220 280 20,500 State and political subdivisions — 10,283 39 10,322 Collateralized mortgage obligations — 2,577 16 2,593 Other U.S. debt securities — 2,469 — 2,469 U.S. equity securities — 42 — 42 Non-U.S. equity securities — 3 — 3 U.S. money-market mutual funds — 409 — 409 Non-U.S. money-market mutual funds — 16 — 16 Total investment securities available-for-sale 3,824 56,837 1,337 61,998 Other assets: Derivative instruments: Foreign exchange contracts — 16,476 8 $ (9,163 ) 7,321 Interest-rate contracts — 68 — (68 ) — Total derivative instruments — 16,544 8 (9,231 ) 7,321 Total assets carried at fair value $ 4,349 $ 73,880 $ 1,345 $ (9,231 ) $ 70,343 Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts $ — $ 15,948 $ 8 $ (10,456 ) $ 5,500 Interest-rate contracts — 348 — (226 ) 122 Other derivative contracts — 380 — — 380 Total derivative instruments — 16,676 8 (10,682 ) 6,002 Total liabilities carried at fair value $ — $ 16,676 $ 8 $ (10,682 ) $ 6,002 (1) R epresents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $906 million and $2,356 million , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2016 , the fair value of other asset-backed securities was primarily composed of $905 million of collateralized loan obligations. (3) As of December 31, 2016 , the fair value of other non-U.S. debt securities was primarily composed of $3,769 million of covered bonds and $988 million of corporate bonds. Fair-Value Measurements on a Recurring Basis as of December 31, 2015 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 32 $ — $ — $ 32 Non-U.S. government securities 479 — — 479 Other 10 328 — 338 Total trading account assets 521 328 — 849 AFS Investment securities: U.S. Treasury and federal agencies: Direct obligations 5,206 512 — 5,718 Mortgage-backed securities — 18,165 — 18,165 Asset-backed securities: Student loans — 6,987 189 7,176 Credit cards — 1,341 — 1,341 Sub-prime — 419 — 419 Other (2) — — 1,764 1,764 Total asset-backed securities — 8,747 1,953 10,700 Non-U.S. debt securities: Mortgage-backed securities — 7,071 — 7,071 Asset-backed securities — 3,093 174 3,267 Government securities — 4,355 — 4,355 Other (3) — 4,579 255 4,834 Total non-U.S. debt securities — 19,098 429 19,527 State and political subdivisions — 9,713 33 9,746 Collateralized mortgage obligations — 2,948 39 2,987 Other U.S. debt securities — 2,614 10 2,624 U.S. equity securities — 39 — 39 Non-U.S. equity securities — 3 — 3 U.S. money-market mutual funds — 542 — 542 Non-U.S. money-market mutual funds — 19 — 19 Total investment securities available-for-sale 5,206 62,400 2,464 70,070 Other assets: Derivatives instruments: Foreign exchange contracts — 11,311 5 $ (6,562 ) 4,754 Interest-rate contracts — 135 — (115 ) 20 Other derivative contracts — 5 — (2 ) 3 Total derivative instruments — 11,451 5 (6,679 ) 4,777 Other 2 — — — 2 Total assets carried at fair value $ 5,729 $ 74,179 $ 2,469 $ (6,679 ) $ 75,698 Liabilities: Accrued expenses and other liabilities: Trading account liabilities: U.S. government securities $ 5 $ — $ — $ — $ 5 Non-U.S. government securities 76 — — — 76 Other 5 13 — — 18 Derivative instruments: Foreign exchange contracts — 10,863 5 (6,995 ) 3,873 Interest-rate contracts — 182 — (24 ) 158 Other derivative contracts — 103 — (2 ) 101 Total derivative instruments — 11,148 5 (7,021 ) 4,132 Other 2 — — — 2 Total liabilities carried at fair value $ 88 $ 11,161 $ 5 $ (7,021 ) $ 4,233 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $776 million and $1.12 billion , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2015 , the fair value of other asset-backed securities was primarily composed of $1,764 million of collateralized loan obligations. (3) As of December 31, 2015 , the fair value of other non-U.S. debt securities was primarily composed of $3,184 million of covered bonds and $613 million of corporate bonds. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present activity related to our level 3 financial assets during the years ended December 31, 2016 and 2015 , respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the years ended December 31, 2016 and 2015 , transfers out of level 3 were mainly related to certain mortgage- and asset-backed securities, including non-U.S. debt securities, for which fair value was measured using prices for which observable market information became available. Fair Value Measurements Using Significant Unobservable Inputs Year Ended December 31, 2016 Fair Value as of Total Realized and Purchases Sales Settlements Transfers out of Level 3 Fair Value as of December 31, 2016 (2) Change in (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: U.S. Treasury and federal agencies, mortgage-backed securities $ — $ — $ — $ 325 $ — $ — $ (325 ) $ — Asset-backed securities: Student loans 189 1 3 — — — (96 ) 97 Other 1,764 31 (23 ) 469 (82 ) (1,254 ) — 905 Total asset-backed securities 1,953 32 (20 ) 469 (82 ) (1,254 ) (96 ) 1,002 Non-U.S. debt securities: Mortgage-backed securities — — — 90 — — (90 ) — Asset-backed securities 174 — — 196 — (60 ) (278 ) 32 Other 255 — — 222 — (7 ) (222 ) 248 Total Non-U.S. debt securities 429 — — 508 — (67 ) (590 ) 280 State and political subdivisions 33 — 9 — — (3 ) — 39 Collateralized mortgage obligations 39 — 2 89 (66 ) (27 ) (21 ) 16 Other U.S. debt securities 10 — — — — (10 ) — — Total AFS investment securities 2,464 32 (9 ) 1,391 (148 ) (1,361 ) (1,032 ) 1,337 Other assets: Derivative instruments: Foreign exchange contracts 5 9 — 3 — (9 ) — 8 $ 5 Total derivative instruments 5 9 — 3 — (9 ) — 8 5 Total assets carried at fair value $ 2,469 $ 41 $ (9 ) $ 1,394 $ (148 ) $ (1,370 ) $ (1,032 ) $ 1,345 $ 5 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. (2) There were no transfers of assets into level 3 during the year ended December 31, 2016 . Fair-Value Measurements Using Significant Unobservable Inputs Year Ended December 31, 2015 Fair Value as of December 31, Total Realized and Purchases Sales Settlements Transfers Transfers Fair Value as of Change in (In millions) Recorded (1) Recorded (1) Assets: Investment securities available-for-sale: Asset-backed securities: Student loans $ 259 $ 1 $ (4 ) $ — $ — $ (6 ) $ — $ (61 ) $ 189 Other 3,780 53 (50 ) — (1,105 ) (914 ) — — 1,764 Total asset-backed securities 4,039 54 (54 ) — (1,105 ) (920 ) — (61 ) 1,953 Non-U.S. debt securities: Mortgage-backed securities — — — 43 — — 97 (140 ) — Asset-backed securities 295 2 (1 ) 249 — (190 ) 4 (185 ) 174 Other 371 — (1 ) 111 — (39 ) — (187 ) 255 Total non-U.S. debt securities 666 2 (2 ) 403 — (229 ) 101 (512 ) 429 State and political subdivisions 38 1 (3 ) — — (3 ) — — 33 Collateralized mortgage obligations 614 (1 ) (2 ) 294 (88 ) (105 ) — (673 ) 39 Other U.S. debt securities 9 — — — — — 10 (9 ) 10 Total AFS investment securities 5,366 56 (61 ) 697 (1,193 ) (1,257 ) 111 (1,255 ) 2,464 Other assets: Derivative instruments: Foreign exchange contracts 81 48 — 9 — (133 ) — — 5 $ (4 ) Total derivative instruments 81 48 — 9 — (133 ) — — 5 (4 ) Total assets carried at fair value $ 5,447 $ 104 $ (61 ) $ 706 $ (1,193 ) $ (1,390 ) $ 111 $ (1,255 ) $ 2,469 $ (4 ) (1) |
Fair Value Inputs, Assets, Quantitative Information | The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair-Value Measurements Fair Value Weighted-Average (Dollars in millions) As of December 31, 2016 As of December 31, 2015 Valuation Technique Significant (1) As of December 31, 2016 As of December 31, 2015 Significant unobservable inputs readily available to State Street: Assets: Asset-backed securities, other $ 1 $ 28 Discounted cash flows Credit spread 0.3 % (0.1 )% State and political subdivisions 39 33 Discounted cash flows Credit spread 1.8 2.2 Derivative instruments, foreign exchange contracts 8 5 Option model Volatility 14.4 9.3 Total $ 48 $ 66 Liabilities: Derivative instruments, foreign exchange contracts $ 8 $ 5 Option model Volatility 14.4 9.2 Total $ 8 $ 5 (1) Significant chan ges in these unobservable inputs would result in significant changes in fair value measure |
Fair Value Inputs, Liabilities, Quantitative Information | The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair-Value Measurements Fair Value Weighted-Average (Dollars in millions) As of December 31, 2016 As of December 31, 2015 Valuation Technique Significant (1) As of December 31, 2016 As of December 31, 2015 Significant unobservable inputs readily available to State Street: Assets: Asset-backed securities, other $ 1 $ 28 Discounted cash flows Credit spread 0.3 % (0.1 )% State and political subdivisions 39 33 Discounted cash flows Credit spread 1.8 2.2 Derivative instruments, foreign exchange contracts 8 5 Option model Volatility 14.4 9.3 Total $ 48 $ 66 Liabilities: Derivative instruments, foreign exchange contracts $ 8 $ 5 Option model Volatility 14.4 9.2 Total $ 8 $ 5 (1) Significant chan ges in these unobservable inputs would result in significant changes in fair value measurement. |
Carrying Value and Estimated Fair Value of Financial Instruments by Fair Value Hierarchy | The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair-value hierarchy, as of the dates indicated. Fair-Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) December 31, 2016 Financial Assets: Cash and due from banks $ 1,314 $ 1,314 $ 1,314 $ — $ — Interest-bearing deposits with banks 70,935 70,935 — 70,935 — Securities purchased under resale agreements 1,956 1,956 — 1,956 — Investment securities held-to-maturity 35,169 34,994 17,400 17,439 155 Net loans (excluding leases) 18,862 18,877 — 18,781 96 Financial Liabilities: Deposits: Non-interest-bearing $ 59,397 $ 59,397 $ — $ 59,397 $ — Interest-bearing - U.S. 30,911 30,911 — 30,911 — Interest-bearing - non-U.S. 96,855 96,855 — 96,855 — Securities sold under repurchase agreements 4,400 4,400 — 4,400 — Other short-term borrowings 1,585 1,585 — 1,585 — Long-term debt 11,430 11,618 — 11,282 336 Fair-Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) December 31, 2015 Financial Assets: Cash and due from banks $ 1,207 $ 1,207 $ 1,207 $ — $ — Interest-bearing deposits with banks 75,338 75,338 — 75,338 — Securities purchased under resale agreements 3,404 3,404 — 3,404 — Investment securities held-to-maturity 29,952 29,798 — 29,798 — Net loans (excluding leases) (1) 17,838 17,792 — 17,667 125 Financial Liabilities: Deposits: Non-interest-bearing $ 65,800 $ 65,800 $ — $ 65,800 $ — Interest-bearing - U.S. 29,958 29,958 — 29,958 — Interest-bearing - non-U.S. 95,869 95,869 — 95,869 — Securities sold under repurchase agreements 4,499 4,499 — 4,499 — Other short-term borrowings 1,754 1,754 — 1,754 — Long-term debt 11,497 11,604 — 11,215 389 (1) Includes $14 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of December 31, 2015 . |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The following table presents the amortized cost and fair value, and associated unrealized gains and losses, of investment securities as of the dates indicated: December 31, 2016 December 31, 2015 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value (In millions) Gains Losses Gains Losses Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 4,265 $ 7 $ 9 $ 4,263 $ 5,717 $ 6 $ 5 $ 5,718 Mortgage-backed securities 13,340 76 159 13,257 18,168 131 134 18,165 Asset-backed securities: Student loans (1) 5,659 12 75 5,596 7,358 16 198 7,176 Credit cards 1,377 — 26 1,351 1,378 — 37 1,341 Sub-prime 289 1 18 272 448 2 31 419 Other (2) 895 10 — 905 1,724 43 3 1,764 Total asset-backed securities 8,220 23 119 8,124 10,908 61 269 10,700 Non-U.S. debt securities: Mortgage-backed securities 6,506 35 6 6,535 7,010 72 11 7,071 Asset-backed securities 2,513 4 1 2,516 3,272 2 7 3,267 Government securities 5,834 8 6 5,836 4,348 7 — 4,355 Other (3) 5,587 31 5 5,613 4,817 29 12 4,834 Total non-U.S. debt securities 20,440 78 18 20,500 19,447 110 30 19,527 State and political subdivisions 10,233 201 112 10,322 9,402 371 27 9,746 Collateralized mortgage obligations 2,610 18 35 2,593 2,993 16 22 2,987 Other U.S. debt securities 2,481 18 30 2,469 2,611 31 18 2,624 U.S. equity securities 39 6 3 42 33 9 3 39 Non-U.S. equity securities 3 — — 3 3 — — 3 U.S. money-market mutual funds 409 — — 409 542 — — 542 Non-U.S. money-market mutual funds 16 — — 16 19 — — 19 Total $ 62,056 $ 427 $ 485 $ 61,998 $ 69,843 $ 735 $ 508 $ 70,070 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 17,527 $ 17 $ 58 $ 17,486 $ 20,878 $ 2 $ 217 $ 20,663 Mortgage-backed securities 10,334 20 221 10,133 610 2 8 604 Asset-backed securities: Student loans (1) 2,883 5 30 2,858 1,592 — 47 1,545 Credit cards 897 2 — 899 897 — 1 896 Other 35 — — 35 366 2 1 367 Total asset-backed securities 3,815 7 30 3,792 2,855 2 49 2,808 Non-U.S. debt securities: Mortgage-backed securities 1,150 70 15 1,205 2,202 109 26 2,285 Asset-backed securities 531 — — 531 1,415 4 3 1,416 Government securities 286 3 — 289 239 — 1 238 Other 113 1 — 114 65 — — 65 Total non-U.S. debt securities 2,080 74 15 2,139 3,921 113 30 4,004 State and political subdivisions — — — — 1 — — 1 Collateralized mortgage obligations 1,413 42 11 1,444 1,687 60 29 1,718 Total $ 35,169 $ 160 $ 335 $ 34,994 $ 29,952 $ 179 $ 333 $ 29,798 (1) Primarily composed of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans. (2) As of December 31, 2016 and December 31, 2015 , the fair value of other ABS was primarily composed of $905 million and $1,764 million , respectively, of collateralized loan obligations. (3) As of December 31, 2016 and December 31, 2015 , the fair value of other non-U.S. debt securities was primarily composed of $3,769 million and $3,184 million , respectively, of covered bonds and $988 million and $613 million , as of December 31, 2016 and December 31, 2015 , respectively, of corporate bonds. |
Schedule of Gross Pre-tax Unrealized Losses on Investment Securities | The following tables present the aggregate fair values of investment securities that have been in a continuous unrealized loss position for less than 12 months , and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated: Less than 12 months 12 months or longer Total December 31, 2016 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 651 $ 8 $ 180 $ 1 $ 831 $ 9 Mortgage-backed securities 7,072 131 1,114 28 8,186 159 Asset-backed securities: Student loans 54 — 3,745 75 3,799 75 Credit cards 795 1 494 25 1,289 26 Sub-prime 1 — 252 18 253 18 Other 75 — — — 75 — Total asset-backed securities 925 1 4,491 118 5,416 119 Non-U.S. debt securities: Mortgage-backed securities 442 1 893 5 1,335 6 Asset-backed securities 253 — 276 1 529 1 Government securities 1,314 6 — — 1,314 6 Other 670 4 218 1 888 5 Total non-U.S. debt securities 2,679 11 1,387 7 4,066 18 State and political subdivisions 3,390 102 304 10 3,694 112 Collateralized mortgage obligations 1,259 31 162 4 1,421 35 Other U.S. debt securities 944 24 157 6 1,101 30 U.S. equity securities 8 — 5 3 13 3 Total $ 16,928 $ 308 $ 7,800 $ 177 $ 24,728 $ 485 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 8,891 $ 57 $ 86 $ 1 $ 8,977 $ 58 Mortgage-backed securities 6,838 221 — — 6,838 221 Asset-backed securities: Student loans 705 9 1,235 21 1,940 30 Credit cards 33 — — — 33 — Other 18 — 9 — 27 — Total asset-backed securities 756 9 1,244 21 2,000 30 Non-U.S. mortgage-backed securities: Mortgage-backed securities 54 2 330 13 384 15 Asset-backed securities 28 — 35 — 63 — Government securities 180 — — — 180 — Total non-U.S. debt securities 262 2 365 13 627 15 Collateralized mortgage obligations 537 4 204 7 741 11 Total $ 17,284 $ 293 $ 1,899 $ 42 $ 19,183 $ 335 Less than 12 months 12 months or longer Total December 31, 2015 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 3,123 $ 4 $ 121 $ 1 $ 3,244 $ 5 Mortgage-backed securities 5,729 48 3,166 86 8,895 134 Asset-backed securities: Student loans 2,841 54 3,217 144 6,058 198 Credit cards 838 7 490 30 1,328 37 Sub-prime 7 — 387 31 394 31 Other 720 3 43 — 763 3 Total asset-backed securities 4,406 64 4,137 205 8,543 269 Non-U.S. debt securities: Mortgage-backed securities 1,457 7 437 4 1,894 11 Asset-backed securities 2,190 7 22 — 2,212 7 Government securities 1,691 — — — 1,691 — Other 1,548 5 527 7 2,075 12 Total non-U.S. debt securities 6,886 19 986 11 7,872 30 State and political subdivisions 206 1 658 26 864 27 Collateralized mortgage obligations 1,511 14 217 8 1,728 22 Other U.S. debt securities 475 9 178 9 653 18 U.S. equity securities — — 5 3 5 3 Total $ 22,336 $ 159 $ 9,468 $ 349 $ 31,804 $ 508 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 16,370 $ 120 $ 3,005 $ 97 $ 19,375 $ 217 Mortgage-backed securities 560 8 — — 560 8 Asset-backed securities: Student loans 896 25 615 22 1,511 47 Credit cards 636 1 — — 636 1 Other 102 — 31 1 133 1 Total asset-backed securities 1,634 26 646 23 2,280 49 Non-U.S. debt securities: Mortgage-backed securities 338 2 524 24 862 26 Asset-backed securities 1,015 3 69 — 1,084 3 Government securities 128 1 — — 128 1 Other — — 43 — 43 — Total non-U.S. debt securities 1,481 6 636 24 2,117 30 Collateralized mortgage obligations 634 9 537 20 1,171 29 Total $ 20,679 $ 169 $ 4,824 $ 164 $ 25,503 $ 333 |
Investments Classified by Contractual Maturity Date | The following table presents contractual maturities of debt investment securities by carrying amount as of December 31, 2016 . The maturities of certain asset-backed securities, mortgage-backed securities, and collateralized mortgage obligations are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties. December 31, 2016 Under 1 Year 1 to 5 Years 6 to 10 Years Over 10 Years Total (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 2,722 $ 1,114 $ 44 $ 383 $ 4,263 Mortgage-backed securities 213 1,533 3,022 8,489 13,257 Asset-backed securities: Student loans 590 3,181 757 1,068 5,596 Credit cards 4 1,052 295 — 1,351 Sub-prime 3 1 2 266 272 Other 1 21 883 — 905 Total asset-backed securities 598 4,255 1,937 1,334 8,124 Non-U.S. debt securities: Mortgage-backed securities 1,301 3,339 731 1,164 6,535 Asset-backed securities 289 1,877 346 4 2,516 Government securities 4,372 987 477 — 5,836 Other 1,901 3,304 408 — 5,613 Total non-U.S. debt securities 7,863 9,507 1,962 1,168 20,500 State and political subdivisions 509 2,347 5,548 1,918 10,322 Collateralized mortgage obligations 2 44 871 1,676 2,593 Other U.S. debt securities 508 1,003 922 36 2,469 Total $ 12,415 $ 19,803 $ 14,306 $ 15,004 $ 61,528 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 400 $ 14,888 $ 2,167 $ 72 $ 17,527 Mortgage-backed securities — 193 1,536 8,605 10,334 Asset-backed securities: Student loans 442 201 349 1,891 2,883 Credit cards 99 798 — — 897 Other 7 18 8 2 35 Total asset-backed securities 548 1,017 357 1,893 3,815 Non-U.S. debt securities: Mortgage-backed securities 148 339 47 616 1,150 Asset-backed securities 163 368 — — 531 Government securities 180 106 — — 286 Other 71 42 — — 113 Total non-U.S. debt securities 562 855 47 616 2,080 Collateralized mortgage obligations 102 23 488 800 1,413 Total $ 1,612 $ 16,976 $ 4,595 $ 11,986 $ 35,169 |
Gain (Loss) on Investments | The following tables present gross realized gains and losses from sales of AFS investment securities, and the components of net impairment losses included in net gains and losses related to investment securities for the periods indicated. Years Ended December 31, (In millions) 2016 2015 2014 Gross realized gains from sales of AFS investment securities $ 15 $ 57 $ 64 Gross realized losses from sales of AFS investment securities (5 ) (62 ) (49 ) Net impairment losses Gross losses from OTTI (2 ) (1 ) (1 ) Losses reclassified (from) to other comprehensive income (1 ) — (10 ) Net impairment losses (1) (3 ) (1 ) (11 ) Gains (losses) related to investment securities, net $ 7 $ (6 ) $ 4 (1) Net impairment losses, recognized in our consolidated statement of income, were composed of the following: Impairment associated with expected credit losses $ (1 ) $ — $ (10 ) Impairment associated with adverse changes in timing of expected future cash flows (2 ) (1 ) (1 ) Net impairment losses $ (3 ) $ (1 ) $ (11 ) |
Schedule of Credit-Related Loss Activity Recognized in Earnings | The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated. Years Ended December 31, (In millions) 2016 2015 2014 Balance, beginning of period $ 92 $ 115 $ 122 Additions: Losses for which OTTI was previously recognized 2 1 11 Deductions: Previously recognized losses related to securities sold or matured (28 ) (24 ) (12 ) Losses related to securities intended or required to be sold — — (6 ) Balance, end of period $ 66 $ 92 $ 115 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Components of Leveraged Lease Investments | The components of our net investment in leveraged lease financing, included in the lease financing segment in the preceding table, were as follows as of December 31: (In millions) 2016 2015 Net rental income receivable $ 1,039 $ 1,159 Estimated residual values 89 89 Unearned income (286 ) (333 ) Investment in leveraged lease financing 842 915 Less: related deferred income tax liabilities (313 ) (334 ) Net investment in leveraged lease financing $ 529 $ 581 |
Net Loans | The following table presents our recorded investment in loans and leases, by segment, as of the dates indicated: (In millions) December 31, 2016 December 31, 2015 Domestic: Commercial and financial: Loans to investment funds $ 11,734 $ 11,915 Senior secured bank loans 3,256 2,929 Loans to municipalities 1,352 962 Other 70 93 Commercial real estate 27 28 Lease financing 338 337 Total domestic 16,777 16,264 Non-U.S.: Commercial and financial: Loans to investment funds 2,224 1,752 Senior secured bank loans 252 205 Lease financing 504 578 Total non-U.S. 2,980 2,535 Total loans and leases 19,757 18,799 Allowance for loan and lease losses (53 ) (46 ) Loans and leases, net of allowance $ 19,704 $ 18,753 |
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator | The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated: December 31, 2016 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 14,889 $ 27 $ 842 $ 15,758 Speculative (2) 3,984 — — 3,984 Substandard (4) 15 — — 15 Total $ 18,888 $ 27 $ 842 $ 19,757 December 31, 2015 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 14,288 $ 28 $ 888 $ 15,204 Speculative (2) 3,537 — 27 3,564 Special mention (3) 31 — — 31 Total $ 17,856 $ 28 $ 915 $ 18,799 (1) Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment. (2) Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met. (3) Special mention loans and leases consist of counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects. (4) Substandard loans and leases consist of counterparties with well-defined weakness that jeopardizes repayment with the possibility we will sustain some loss. |
Schedule of Loans and Leases Receivable by Impairment Methodology | The following table presents our recorded investment in loans and leases, disaggregated based on our impairment methodology, as of the dates indicated: December 31, 2016 December 31, 2015 (In millions) Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases Loans and leases (1) : Individually evaluated for impairment $ 15 $ — $ — $ 15 $ — $ — $ — $ — Collectively evaluated for impairment 18,873 27 842 19,742 17,856 28 915 18,799 Total $ 18,888 $ 27 $ 842 $ 19,757 $ 17,856 $ 28 $ 915 $ 18,799 (1) For those portfolios where there are a small number of loans each with a large balance, we review each loan annually for indicators of impairment. For those loans where no such indicators are identified, the loans are collectively evaluated for impairment. As of December 31, 2016 , $195 thousand of the allowance for loan and lease loss related to commercial and financial loans individually evaluated for impairment, and the remainder of the allowance related to commercial and financial loans collectively evaluated for impairment. As of December 31, 2015 , all of the allowance for loan and lease loss related to commercial and financial loans collectively evaluated for impairment. |
Impaired Loans | The following table presents information related to our recorded investment in impaired loans and leases for the dates or periods indicated. As of December 31, 2015 , we had no impaired loans and leases. As of December 31, 2016 Year Ended December 31, 2016 (In millions) Recorded Investment Unpaid Principal Balance (1) Related Allowance (2) Average Recorded Investment Interest Revenue Recognized Commercial and financial (1) $ 15 $ 15 $ — $ 15 $ — Total $ 15 $ 15 $ — $ 15 $ — (1) As of December 31, 2016, the related allowance for loan loss was approximately $195 thousand . This relates to one loan, which was on non-accrual status. (2) As of December 31, 2016 and December 31, 2015 , with exception of the aforementioned specific allowance, all of the allowance for loan and lease losses of $53 million and $46 million , respectively, related to loans that were not impaired. |
Schedule of Activity in the Allowance for Loan Losses | The following table presents activity in the allowance for loan and lease losses for the periods indicated: Years Ended December 31, 2016 2015 2014 (In millions) Total Loans and Leases Total Loans and Leases Total Loans and Leases Allowance for loan and lease losses (1) : Beginning balance $ 46 $ 38 $ 28 Provision for loan and lease losses 10 12 10 Charge-offs (3 ) (4 ) — Ending balance $ 53 $ 46 $ 38 (1) The provisions and charge-offs for loans and leases were attributable to exposure to senior secured loans to non-investment grade borrowers, purchased in connection with our participation in syndicated loans. |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In The Carrying Amount Of Goodwill | The following table presents changes in the carrying amount of goodwill during the periods indicated: December 31, 2016 December 31, 2015 (In millions) Investment Servicing Investment Management Total Investment Servicing Investment Management Total Goodwill: Beginning balance $ 5,641 $ 30 $ 5,671 $ 5,793 $ 33 $ 5,826 Acquisitions (1) — 236 236 — — — Divestitures and other reductions (11 ) — (11 ) — — — Foreign currency translation (80 ) (2 ) (82 ) (152 ) (3 ) (155 ) Ending balance $ 5,550 $ 264 $ 5,814 $ 5,641 $ 30 $ 5,671 (1) Amounts for 2016 reflect our acquisition of GEAM, which is more fully described in Note 1. |
Schedule of Finite-Lived Intangible Assets | The following table presents changes in the net carrying amount of other intangible assets during the periods indicated: December 31, 2016 December 31, 2015 (In millions) Investment Servicing Investment Management Total Investment Servicing Investment Management Total Other intangible assets: Beginning balance $ 1,753 $ 15 $ 1,768 $ 1,998 $ 27 $ 2,025 Acquisitions (1) — 217 217 16 — 16 Divestitures (8 ) — (8 ) — — — Amortization (186 ) (21 ) (207 ) (187 ) (10 ) (197 ) Foreign currency translation and other, net (20 ) — (20 ) (74 ) (2 ) (76 ) Ending balance $ 1,539 $ 211 $ 1,750 $ 1,753 $ 15 $ 1,768 (1) Amounts for 2016 reflect our acquisition of GEAM, which is more fully described in Note 1. The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated: December 31, 2016 December 31, 2015 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Client relationships $ 2,620 $ (1,306 ) $ 1,314 $ 2,486 $ (1,198 ) $ 1,288 Core deposits 661 (277 ) 384 667 (246 ) 421 Other 132 (80 ) 52 147 (88 ) 59 Total $ 3,413 $ (1,663 ) $ 1,750 $ 3,300 $ (1,532 ) $ 1,768 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Expected future amortization expense for other intangible assets recorded as of December 31, 2016 is as follows: (In millions) Future Amortization Years Ending December 31, 2017 $ 208 2018 186 2019 169 2020 166 2021 161 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
Components of Other Assets | The following table presents the components of other assets as of the dates indicated: (In millions) December 31, 2016 December 31, 2015 Receivable - securities lending (1) $ 21,204 $ 20,121 Derivative instruments, net 7,321 4,777 Bank-owned life insurance 3,158 3,078 Investments in joint ventures and other unconsolidated entities 2,363 2,034 Collateral, net 2,236 1,344 Accounts receivable 886 1,018 Prepaid expenses 333 284 Deferred tax assets, net of valuation allowance (2) 210 182 Deposits with clearing organizations 132 127 Income taxes receivable 106 154 Receivable for securities settlement 40 311 Other (3) 339 473 Total $ 38,328 $ 33,903 (1) Refer to Note 11 for further information on the impact of collateral on our financial statement presentation of securities borrowing transactions. (2) Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction as of December 31, 2015. Gross deferred tax assets and liabilities are presented in Note 22. (3) Includes amounts held in escrow accounts at third parties related to the negotiated settlements in the indirect foreign exchange legal matter presented in Note 13. |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The following table presents information about these U.S. government securities and the carrying value of the related repurchase agreements, including accrued interest, as of December 31, 2016 . The table excludes repurchase agreements collateralized by securities purchased under resale agreements and collateralized by trading account assets. U.S. Government Securities Sold Repurchase Agreements (1) (In millions) Amortized Cost Fair Value Amortized Cost Overnight maturity $ 4,490 $ 4,491 $ 4,400 (1) Collateralized by investment securities The following tables present information with respect to the amounts outstanding and weighted-average interest rates of the primary components of our short-term borrowings as of and for the years ended December 31 : Securities Sold Under Repurchase Agreements Federal Funds Purchased (Dollars in millions) 2016 2015 2014 2016 2015 2014 Balance as of December 31 $ 4,400 $ 4,499 $ 8,925 $ — $ 6 $ 21 Maximum outstanding as of any month-end 5,572 10,977 10,955 29 29 29 Average outstanding during the year 4,113 8,875 8,817 31 21 20 Weighted-average interest rate as of year-end .040 % .020 % .005 % .00 % .03 % .01 % Weighted-average interest rate for the year .02 .01 .00 .17 .01 .00 Tax-Exempt Investment Program Corporate Commercial Paper Program (1) (Dollars in millions) 2016 2015 2014 2015 2014 Balance as of December 31 $ 1,158 $ 1,748 $ 1,870 $ — $ 2,485 Maximum outstanding as of any month-end 1,726 1,865 1,938 2,919 2,485 Average outstanding during the year 1,512 1,807 1,903 1,897 2,136 Weighted-average interest rate as of year-end .67 % .03 % .06 % .00 % .16 % Weighted-average interest rate for the year .36 .06 .08 .26 .17 (1) We phased out our commercial paper program prior to December 31, 2015. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt | (Dollars in millions) As of December 31, Issuance Date Maturity Date Coupon Rate Seniority Interest Due Dates 2016 2015 (6) Statutory business trusts (5) : April 30, 2007 June 15, 2037 Floating-rate Junior subordinated debentures 3/15; 6/15; 9/15; 12/15 $ — $ 793 May 15, 1998 May 15, 2028 Floating-rate Junior subordinated debentures 2/15; 5/15; 8/15; 11/15 — 155 Parent company and non-banking subsidiary issuances: August 18, 2015 August 18, 2025 3.55 % Senior notes 2/18; 8/18 (1) 1,293 1,301 August 18, 2015 August 18, 2020 2.55 % Senior notes 2/18; 8/18 (1) 1,192 1,194 November 19, 2013 November 20, 2023 3.7 % Senior notes 5/20; 11/20 (1) 1,033 1,046 December 15, 2014 December 16, 2024 3.3 % Senior notes 6/16; 12/16 (1) 999 1,007 May 15, 2013 May 15, 2023 (2) 3.1 % Subordinated notes 5/15; 11/15 (1) 987 993 April 30, 2007 (5) June 15, 2037 Floating-rate Junior subordinated debentures 3/15; 6/15; 9/15; 12/15 793 — March 7, 2011 March 7, 2021 4.375 % Senior notes 3/7; 9/7 (1) 738 738 May 19, 2016 May 19, 2021 1.95 % Senior notes 5/19; 11/19 (1) 726 — May 19, 2016 May 19, 2026 2.65 % Senior notes 5/19; 11/19 (1) 704 — February 11, 2011 March 15, 2018 (3) 4.956 % Junior subordinated debentures 3/15; 9/15 (1) 511 519 August 18, 2015 August 18, 2020 Floating-rate Senior notes 2/18; 5/18; 8/18; 11/18 499 498 May 15, 2013 May 15, 2018 1.35 % Senior notes 5/15; 11/15 (1) 497 495 April 30, 2007 April 30, 2017 5.375 % Senior notes 4/30; 10/30 450 449 May 15, 1998 (5) May 15, 2028 Floating-rate Junior subordinated debentures 2/15; 5/15; 8/15; 11/15 150 — June 21, 1996 June 15, 2026 (4) 7.35 % Senior notes 6/15; 12/15 150 150 March 7, 2011 March 7, 2016 2.875 % Senior notes 3/7 — 1,001 Parent company: Long-term capital leases 293 334 State Street Bank issuances: September 24, 2003 October 15, 2018 (2) 5.25 % Subordinated notes 4/15; 10/15 415 424 December 8, 2005 January 15, 2016 5.3 % Subordinated notes 1/15 — 400 Total long-term debt $ 11,430 $ 11,497 (1) We have entered into interest-rate swap agreements, recorded as fair value hedges, to modify our interest expense on these senior and subordinated notes from a fixed rate to a floating rate. As of December 31, 2016 , the carrying value of long-term debt associated with these fair value hedges decreased $15 million . As of December 31, 2015 , the carrying value of long-term debt associated with these fair value hedges increased $105 million . Refer to Note 10 for additional information about fair value hedges. (2) The subordinated notes qualify for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines. (3) We do not have the right to redeem the debenture prior to maturity other than upon the occurrence of specified events. Such redemption is subject to federal regulatory approval. The junior subordinated debenture qualify for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines. (4) We may not redeem the note prior to their maturity. (5) On December 21, 2016, the statutory business trusts were liquidated and the floating-rate junior subordinated debentures issuances of the statutory business trusts were exchanged for a like principal amount of State Street Corporation's floating-rate junior subordinated debentures with the same maturity dates. (6) Refer to Note 1 regarding the retrospective application of ASU 2015-03, which resulted in the netting of debt issuance costs within long-term debt. |
Derivative Financial Instrume45
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The table below summarizes the maturities and the paid fixed interest rates for the hedged senior and subordinated notes: December 31, 2016 Maturity Paid Fixed Interest Rate Senior Notes 2018 1.35% 2020 2.55 2021 1.95 2021 4.38 2023 3.70 2024 3.30 2025 3.55 2026 2.65 Subordinated Notes 2018 4.96 2023 3.10 |
Schedule of Outstanding Hedges: (Notional Amount) | The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with our trading and asset-and-liability management activities as of the dates indicated: (In millions) December 31, December 31, Derivatives not designated as hedging instruments: Interest-rate contracts: Swap agreements and forwards $ — $ 336 Futures 13,455 2,621 Foreign exchange contracts: Forward, swap and spot 1,414,765 1,274,277 Options purchased 337 403 Options written 202 404 Credit derivative contracts: Credit swap agreements (1) — 141 Commodity and equity contracts: Commodity (1) — 113 Equity (1) — 87 Other: Stable value contracts 27,182 24,583 Deferred value awards (2)(3) 409 320 Derivatives designated as hedging instruments: Interest-rate contracts: Swap agreements 10,169 9,398 Foreign exchange contracts: Forward and swap 8,564 4,515 (1) Primarily composed of positions held by a consolidated sponsored investment fund, more fully described in Note 14 . (2) Represents grants of deferred value awards to employees; refer to discussion in this note under "Derivatives Not Designated as Hedging Instruments." (3) Amount as of December 31, 2016 reflects $249 million related to the acceleration of expense associated with certain cash settled deferred incentive compensation awards. |
Notional Amount of Interest Rate Swap Agreements Designated as Fair Value and Cash Flow Hedges | The following tables present the aggregate notional amounts of these interest rate contracts and the related assets or liabilities being hedged as of the dates indicated: December 31, 2016 (1) (In millions) Fair Value Hedges Investment securities available-for-sale $ 1,444 Long-term debt (2) 8,725 Total $ 10,169 December 31, 2015 (1) (In millions) Fair Value Hedges Investment securities available-for-sale $ 1,698 Long-term debt (2) 7,700 Total $ 9,398 (1) As of December 31, 2016 and 2015 , there were no interest-rate contracts designated as cash flow hedges. (2) As of December 31, 2016 , these fair value hedges decreased the carrying value of long-term debt presented in our consolidated statement of condition by $15 million . As of December 31, 2015 , these fair value hedges increased the carrying value of long-term debt presented in our consolidated statement of condition by $105 million . |
Contractual and Weighted-Average Interest Rates, Which Include the Effects of Hedges Related to Financial Instruments | The following table presents the contractual and weighted-average interest rates for long-term debt, which include the effects of the fair value hedges presented in the table above, for the periods indicated: Years Ended December 31, 2016 2015 Contractual Rate Contractual Rate Long-term debt 3.40 % 2.29 % 3.57 % 2.42 % |
Schedule of the Fair Values of Derivative Financial Instruments | The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is disclosed in Note 11 . Derivative Assets (1) Fair Value (In millions) December 31, 2016 December 31, 2015 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 15,982 $ 10,799 Interest-rate contracts — 2 Other derivative contracts — 5 Total $ 15,982 $ 10,806 Derivatives designated as hedging instruments: Foreign exchange contracts $ 502 $ 517 Interest-rate contracts 68 133 Total $ 570 $ 650 (1) Derivative assets are included within other assets in our consolidated statement of condition. Derivative Liabilities (1) Fair Value (In millions) December 31, 2016 December 31, 2015 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 15,881 $ 10,795 Other derivative contracts 380 103 Interest-rate contracts — 2 Total $ 16,261 $ 10,900 Derivatives designated as hedging instruments: Foreign exchange contracts $ 75 $ 73 Interest-rate contracts 348 180 Total $ 423 $ 253 (1) Derivative liabilities are included within other liabilities in our consolidated statement of condition. |
Impact of Derivatives on Consolidated Statement of Income | The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Years Ended December 31, (In millions) 2016 2015 2014 Derivatives not designated as hedging instruments: Foreign exchange contracts Trading services revenue $ 662 $ 686 $ 612 Interest-rate contracts Processing fees and other revenue 1 — — Interest-rate contracts Trading services revenue (7 ) (2 ) 1 Credit derivative contracts Trading services revenue (1 ) (1 ) 1 Credit derivative contracts Processing fees and other revenue — — (1 ) Other derivative contracts Trading services revenue (2 ) 8 (2 ) Other derivative contracts (1) Compensation and employee benefits (448 ) (149 ) (106 ) Total $ 205 $ 542 $ 505 (1) Amount in 2016 reflects $249 million related to the acceleration of expense associated with certain cash settled deferred incentive compensation awards. |
Schedule of Differences Between the Gains (Losses) on the Derivative and the Gains (Losses) on the Hedged Item | Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income Years Ended December 31, Years Ended December 31, (In millions) 2016 2015 2014 2016 2015 2014 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and $ (6 ) $ (101 ) $ (92 ) Investment securities Processing fees and $ 6 $ 101 $ 92 Foreign exchange contracts Processing fees and other revenue 221 (241 ) — FX deposit Processing fees and other revenue (221 ) 241 — Interest-rate contracts Processing fees and other revenue 43 16 (44 ) Available-for-sale securities Processing fees and other revenue (1) (40 ) (17 ) 39 Interest-rate contracts Processing fees and (98 ) 61 150 Long-term debt Processing fees and 100 (54 ) (138 ) Total $ 160 $ (265 ) $ 14 $ (155 ) $ 271 $ (7 ) (1) In 2016 , 2015 and 2014 , $23 million of net unrealized gains, $12 million of net unrealized gains and $24 million net unrealized losses, respectively, on AFS investment securities designated in fair value hedges were recognized in OCI. Differences between the gains (losses) on the derivative and the gains (losses) on the hedged item, excluding any amounts recorded in net interest revenue, represent hedge ineffectiveness. Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Years Ended December 31, Years Ended December 31, Years Ended December 31, (In millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Derivatives designated as cash flow hedges: Interest-rate contracts $ — $ — $ (2 ) Net interest revenue $ — $ (4 ) $ (4 ) Net interest revenue $ — $ — $ 3 Foreign exchange contracts (39 ) 55 126 Net interest revenue — — — Net interest revenue 24 10 6 Total $ (39 ) $ 55 $ 124 $ — $ (4 ) $ (4 ) $ 24 $ 10 $ 9 Derivatives designated as net investment hedges: Foreign exchange contracts $ 109 $ — $ — Gains (Losses) related to investment securities, net $ — $ — $ — Gains (Losses) related to investment securities, net $ — $ — $ — Total $ 109 $ — $ — $ — $ — $ — $ — $ — $ — |
Offsetting Arrangements (Tables
Offsetting Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Offsetting [Abstract] | |
Offsetting Assets | The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated: Assets: December 31, 2016 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Cash and Securities Received (5) Net Amount (6) Derivatives: Foreign exchange contracts $ 16,484 $ (8,257 ) $ 8,227 $ 8,227 Interest-rate contracts 68 (68 ) — — Cash collateral and securities netting NA (906 ) (906 ) $ (247 ) (1,153 ) Total derivatives 16,552 (9,231 ) 7,321 (247 ) 7,074 Other financial instruments: Resale agreements and securities borrowing (4) 58,677 (35,517 ) 23,160 (22,939 ) 221 Total derivatives and other financial instruments $ 75,229 $ (44,748 ) $ 30,481 $ (23,186 ) $ 7,295 Assets: December 31, 2015 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Cash and Securities Received (5) Net Amount (6) Derivatives: Foreign exchange contracts $ 11,316 $ (5,896 ) $ 5,420 $ 5,420 Interest-rate contracts 135 (5 ) 130 130 Other derivative contracts 5 (2 ) 3 3 Cash collateral and securities netting NA (776 ) (776 ) $ (405 ) (1,181 ) Total derivatives 11,456 (6,679 ) 4,777 (405 ) 4,372 Other financial instruments: Resale agreements and securities borrowing (4) 62,522 (38,997 ) 23,525 (22,875 ) 650 Total derivatives and other financial instruments $ 73,978 $ (45,676 ) $ 28,302 $ (23,280 ) $ 5,022 NA: Not applicable. (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. Refer to Note 1 and Note 2 for additional information on the measurement basis of these instruments. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Included in the $23,160 million as of December 31, 2016 were $1,956 million of resale agreements and $21,204 million of collateral provided related to securities borrowing. Included in the $23,525 million as of December 31, 2015 were $3,404 million of resale agreements and $20,121 million of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 12 for additional information with respect to principal securities finance transactions. (5) Includes securities in connection with our securities borrowing transactions. (6) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. |
Offsetting Liabilities | The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated: Liabilities: December 31, 2016 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Cash and Securities Provided (5) Net Amount (6) Derivatives: Foreign exchange contracts $ 15,956 $ (8,253 ) $ 7,703 $ 7,703 Interest-rate contracts 348 (73 ) 275 275 Other derivative contracts 380 — 380 380 Cash collateral and securities netting NA (2,356 ) (2,356 ) $ (180 ) (2,536 ) Total derivatives 16,684 (10,682 ) 6,002 (180 ) 5,822 Other financial instruments: Repurchase agreements and securities lending (4) 44,933 (35,517 ) 9,416 (7,059 ) 2,357 Total derivatives and other financial instruments $ 61,617 $ (46,199 ) $ 15,418 $ (7,239 ) $ 8,179 Liabilities: December 31, 2015 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Cash and Securities Provided (5) Net Amount (6) Derivatives: Foreign exchange contracts $ 10,868 $ (5,896 ) $ 4,972 $ 4,972 Interest-rate contracts 182 (5 ) 177 177 Other derivative contracts 103 (2 ) 101 101 Cash collateral and securities netting NA (1,118 ) (1,118 ) $ (64 ) (1,182 ) Total derivatives 11,153 (7,021 ) 4,132 (64 ) 4,068 Other financial instruments: Resale agreements and securities lending (4) 46,766 (38,997 ) 7,769 (5,350 ) 2,419 Total derivatives and other financial instruments $ 57,919 $ (46,018 ) $ 11,901 $ (5,414 ) $ 6,487 NA: Not applicable. (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. Refer to Note 1 and Note 2 for additional information on the measurement basis of these instruments. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Included in the $9,416 million as of December 31, 2016 were $4,400 million of repurchase agreements and $5,016 million of collateral received related to securities lending. Included in the $7,769 million as of December 31, 2015 were $4,499 million of repurchase agreements and $3,270 million of collateral received related to securities lending. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilit ies, respectively, in our consolidated statement of condition. Refer to Note 12 for additional information with respect to principal securities finance transactions. (5) Includes securities provided in connection with our securities lending transactions. (6) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. |
Securities Sold and Securities Loaned Under Repurchase Agreements | The following tables summarize our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated: Remaining Contractual Maturity of the Agreements As of December 31, 2016 (In millions) Overnight and Continuous Up to 30 days 30 – 90 days Total Repurchase agreements: U.S. Treasury and agency securities $ 35,509 $ — $ — $ 35,509 Total 35,509 — — 35,509 Securities lending transactions: Corporate debt securities 53 — — 53 Equity securities 8,337 — 1,034 9,371 Total 8,390 — 1,034 9,424 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 43,899 $ — $ 1,034 $ 44,933 Remaining Contractual Maturity of the Agreements As of December 31, 2015 (In millions) Overnight and Continuous Up to 30 days 30 – 90 days Total Repurchase agreements: U.S. Treasury and agency securities $ 37,157 $ 5 $ — $ 37,162 Non-U.S. sovereign debt — 97 — 97 Total 37,157 102 — 37,259 Securities lending transactions: Corporate debt securities 1 — — 1 Equity securities 8,502 — 1,002 9,504 Non-U.S. sovereign debt 2 — — 2 Total 8,505 — 1,002 9,507 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 45,662 $ 102 $ 1,002 $ 46,766 |
Commitments and Guarantees (Tab
Commitments and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and off-balance sheet guarantees as of the dates indicated. (In millions) December 31, 2016 December 31, 2015 Commitments (1) : Unfunded credit facilities $ 28,154 $ 26,570 Guarantees (2) : Indemnified securities financing $ 360,452 $ 320,436 Stable value protection 27,182 24,583 Standby letters of credit 3,459 4,700 (1) The potential losses associated with these commitments equal the gross contractual amounts, and do not consider the value of any collateral. (2) The potential losses associated with these guarantees equal the gross contractual amounts and do not consider the value of any collateral or reflect any participations to independent third parties. |
Schedule of Repurchase Agreements | The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated: (In millions) December 31, 2016 December 31, 2015 Fair value of indemnified securities financing $ 360,452 $ 320,436 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 377,919 335,420 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 60,003 63,055 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 63,959 67,016 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Preferred Shares | The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of December 31, 2016 : Issuance Date Depositary Shares Issued Ownership Interest per Depositary Share Liquidation Preference Per Share Liquidation Preference Per Depositary Share Net Proceeds of Offering (In millions) Redemption Date (1) Preferred Stock (2) : Series C August 2012 20,000,000 1/4,000th $ 100,000 $ 25 $ 488 September 15, 2017 Series D February 2014 30,000,000 1/4,000th 100,000 25 742 March 15, 2024 Series E November 2014 30,000,000 1/4,000th 100,000 25 728 December 15, 2019 Series F May 2015 750,000 1/100th 100,000 1,000 742 September 15, 2020 Series G April 2016 20,000,000 1/4,000th 100,000 25 493 March 15, 2026 (1) On the redemption date, or any dividend declaration date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. (2) The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. |
Dividends Declared | The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated: Years Ended December 31, 2016 2015 Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C $ 5,250 $ 1.32 $ 26 $ 5,250 $ 1.32 $ 26 Series D 5,900 1.48 44 5,900 1.48 44 Series E 6,000 1.52 45 6,333 1.60 48 Series F 5,250 52.50 40 1,663 16.63 12 Series G 3,626 0.90 18 — — — Total $ 173 $ 130 The table below presents the dividends declared on common stock for the periods indicated: Years Ended December 31, Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) 2016 2015 Common Stock $ 1.44 $ 559 $ 1.32 $ 536 |
Stock Repurchase Program | The table below presents the activity under both the 2016 Program and the 2015 Program during the year ended December 31, 2016 . Shares Purchased Average Cost per Share Total Purchased 2016 Program 9.0 $ 72.66 $ 650 2015 Program 12.1 58.83 715 Total 21.1 $ 64.70 $ 1,365 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the after-tax components of AOCI as of December 31: (In millions) 2016 2015 2014 Net unrealized gains on cash flow hedges $ 229 $ 293 $ 276 Net unrealized gains (losses) on available-for-sale securities portfolio (225 ) 9 273 Net unrealized gains (losses) related to reclassified available-for-sale securities 25 (28 ) 39 Net unrealized gains (losses) on available-for-sale securities (200 ) (19 ) 312 Net unrealized losses on available-for-sale securities designated in fair value hedges (86 ) (109 ) (121 ) Other-than-temporary impairment on available-for-sale securities related to factors other than credit — — 1 Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries 95 (14 ) (14 ) Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (9 ) (16 ) (29 ) Net unrealized losses on retirement plans (194 ) (183 ) (272 ) Foreign currency translation (1,875 ) (1,394 ) (660 ) Total $ (2,040 ) $ (1,442 ) $ (507 ) The following table presents changes in AOCI by component, net of related taxes, for the periods indicated: (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2014 $ 276 $ 192 $ (14 ) $ (29 ) $ (272 ) $ (660 ) $ (507 ) Other comprehensive income (loss) before reclassifications 20 (314 ) — 15 1 (734 ) (1,012 ) Amounts reclassified into (out of) earnings (3 ) (6 ) — (2 ) 88 — 77 Other comprehensive income (loss) 17 (320 ) — 13 89 (734 ) (935 ) Balance as of December 31, 2015 $ 293 $ (128 ) $ (14 ) $ (16 ) $ (183 ) $ (1,394 ) $ (1,442 ) Other comprehensive income (loss) before reclassifications (64 ) (164 ) 109 8 — (478 ) (589 ) Amounts reclassified into (out of) earnings — 6 — (1 ) (11 ) (3 ) (9 ) Other comprehensive income (loss) (64 ) (158 ) 109 7 (11 ) (481 ) (598 ) Balance as of December 31, 2016 $ 229 $ (286 ) $ 95 $ (9 ) $ (194 ) $ (1,875 ) $ (2,040 ) |
Schedule of Reclassifications Out of AOCI | The following table presents after-tax reclassifications into earnings for the periods indicated: Years Ended December 31, 2016 2015 (In millions) Amounts Reclassified into (out of) Earnings Affected Line Item in Consolidated Statement of Income Cash flow hedges: Interest-rate contracts, net of related taxes of $0 and $2, respectively $ — $ (3 ) Net interest revenue Available-for-sale securities: Net realized gains from sales of available-for-sale securities, net of related taxes of ($4) and $1, respectively 6 (6 ) Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $1 and $0, respectively (1 ) (2 ) Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of ($1) and ($51), respectively (11 ) 88 Compensation and employee benefits expenses Foreign currency translation: Sales of non-U.S. entities, net of related taxes of ($2) and $0, respectively (3 ) — Processing fees and other revenue Total reclassifications into (out of) AOCI $ (9 ) $ 77 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Regulatory Capital | The following table presents the regulatory capital structure, total risk-weighted assets, related regulatory capital ratios and the minimum required regulatory capital ratios for State Street and State Street Bank as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III final rule are phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table. State Street State Street Bank (In millions) Basel III Advanced Approaches December 31, 2016 (1) Basel III Standardized Approach December 31, 2016 (2) Basel III Advanced Approaches December 31, 2015 (1) Basel III Standardized Approach December 31, 2015 (2) Basel III Advanced Approaches December 31, 2016 (1) Basel III Standardized Approach December 31, 2016 (2) Basel III Advanced Approaches December 31, 2015 (1) Basel III Standardized Approach December 31, 2015 (2) Common shareholders' equity: Common stock and related surplus $ 10,286 $ 10,286 $ 10,250 $ 10,250 $ 11,376 $ 11,376 $ 10,938 $ 10,938 Retained earnings 17,459 17,459 16,049 16,049 12,285 12,285 10,655 10,655 Accumulated other comprehensive income (loss) (1,936 ) (1,936 ) (1,422 ) (1,422 ) (1,648 ) (1,648 ) (1,230 ) (1,230 ) Treasury stock, at cost (7,682 ) (7,682 ) (6,457 ) (6,457 ) — — — — Total 18,127 18,127 18,420 18,420 22,013 22,013 20,363 20,363 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (3) (6,348 ) (6,348 ) (5,927 ) (5,927 ) (6,060 ) (6,060 ) (5,631 ) (5,631 ) Other adjustments (155 ) (155 ) (60 ) (60 ) (148 ) (148 ) (85 ) (85 ) Common equity tier 1 capital 11,624 11,624 12,433 12,433 15,805 15,805 14,647 14,647 Preferred stock 3,196 3,196 2,703 2,703 — — — — Trust preferred capital securities subject to phase-out from tier 1 capital — — 237 237 — — — — Other adjustments (103 ) (103 ) (109 ) (109 ) — — — — Tier 1 capital 14,717 14,717 15,264 15,264 15,805 15,805 14,647 14,647 Qualifying subordinated long-term debt 1,172 1,172 1,358 1,358 1,179 1,179 1,371 1,371 Trust preferred capital securities phased out of tier 1 capital — — 713 713 — — — — ALLL and other 19 77 12 66 15 77 8 66 Other adjustments 1 1 2 2 — — — — Total capital $ 15,909 $ 15,967 $ 17,349 $ 17,403 $ 16,999 $ 17,061 $ 16,026 $ 16,084 Risk-weighted assets: Credit risk $ 50,900 $ 98,125 $ 51,733 $ 93,515 $ 47,383 $ 94,413 $ 47,677 $ 89,164 Operational risk (4) 44,579 NA 43,882 NA 44,043 NA 43,324 NA Market risk (5) 3,822 1,751 3,937 2,378 3,822 1,751 3,939 2,378 Total risk-weighted assets $ 99,301 $ 99,876 $ 99,552 $ 95,893 $ 95,248 $ 96,164 $ 94,940 $ 91,542 Adjusted quarterly average assets $ 226,310 $ 226,310 $ 221,880 $ 221,880 $ 222,584 $ 222,584 $ 217,358 $ 217,358 Capital Ratios: 2016 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (6) 2015 Minimum Requirements (7) Common equity tier 1 capital 5.5 % 4.5 % 11.7 % 11.6 % 12.5 % 13.0 % 16.6 % 16.4 % 15.4 % 16.0 % Tier 1 capital 7.0 6.0 14.8 14.7 15.3 15.9 16.6 16.4 15.4 16.0 Total capital 9.0 8.0 16.0 16.0 17.4 18.1 17.8 17.7 16.9 17.6 Tier 1 leverage 4.0 4.0 6.5 6.5 6.9 6.9 7.1 7.1 6.7 6.7 NA: Not applicable. (1) Common equity tier 1 capital, tier 1 capital and total capital ratios as of December 31, 2016 and December 31, 2015 were calculated in conformity with the advanced approaches provisions of the Basel III final rule. Tier 1 leverage ratio as of December 31, 2016 and December 31, 2015 were calculated in conformity with the Basel III final rule. (2) Common equity tier 1 capital, tier 1 capital and total capital ratios as of December 31, 2016 and December 31, 2015 were calculated in conformity with the standardized approach provisions of the Basel III final rule. Tier 1 leverage ratio as of December 31, 2016 and December 31, 2015 were calculated in conformity with the Basel III final rule. (3) Amounts for State Street and State Street Bank as of December 31, 2016 consisted of goodwill, net of associated deferred tax liabilities, and 60% of other intangible assets, net of associated deferred tax liabilities. Amounts for State Street and State Street Bank as of December 31, 2015 consisted of goodwill, net of deferred tax liabilities and 40% of other intangible assets, net of associated deferred tax liabilities. Intangible assets, net of associated deferred tax liabilities is phased in as a deduction from capital, in conformity with the Basel III final rule. (4) Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational risk RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs. (5) Market risk risk-weighted assets reported in conformity with the Basel III advanced approaches included a CVA which reflected the risk of potential fair-value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts. The CVA was not provided for in the final market risk capital rule; however, it was required by the advanced approaches provisions of the Basel III final rule. We used a simple CVA approach in conformity with the Basel III advanced approaches. (6) Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2016 . (7) Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2015 . |
Net Interest Revenue (Tables)
Net Interest Revenue (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Components of Interest Revenue and Interest Expense | The following table presents the components of interest revenue and interest expense, and related net interest revenue, for the periods indicated: Years Ended December 31, (In millions) 2016 2015 2014 Interest revenue: Deposits with banks $ 126 $ 208 $ 196 Investment securities: U.S. Treasury and federal agencies 821 735 672 State and political subdivisions 224 227 231 Other investments 756 934 1,241 Securities purchased under resale agreements 146 62 38 Loans and leases 378 311 266 Other interest-earning assets 61 11 8 Total interest revenue 2,512 2,488 2,652 Interest expense: Deposits 85 97 99 Securities sold under repurchase agreements 1 — — Short-term borrowings 7 7 5 Long-term debt 260 250 245 Other interest-bearing liabilities 75 46 43 Total interest expense 428 400 392 Net interest revenue $ 2,084 $ 2,088 $ 2,260 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options and Stock Appreciation Rights | The following table presents information about the Plans as of December 31, 2016 , and related activity during the years indicated: Shares (In thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In years) Total Intrinsic Value (In millions) Stock Options and Stock Appreciation Rights: Outstanding as of December 31, 2014 1,861 $ 74.12 Exercised (398 ) 62.63 Forfeited or expired (257 ) 81.71 Outstanding as of December 31, 2015 1,206 76.29 Exercised (227 ) 70.59 Forfeited or expired (24 ) 81.71 Outstanding and exercisable as of December 31, 2016 (1) 955 $ 77.52 0.7 $ 2.6 (1) Consists of zero shares subject to stock options and 955 thousand stock appreciation rights. |
Schedule of Restricted Stock Awards | The following tables present activity related to other common stock awards during the years indicated: Shares (In thousands) Weighted-Average Grant Date Fair Value Restricted Stock Awards: Outstanding as of December 31, 2014 31 $ 41.27 Vested (31 ) 41.22 Forfeited — — Outstanding as of December 31, 2015 (1) — $ — (1) No restricted stock awards were issued or outstanding in 2016 . |
Schedule of Deferred Stock Awards | Shares (In thousands) Weighted-Average Grant Date Fair Value Deferred Stock Awards: Outstanding as of December 31, 2014 12,431 $ 51.47 Granted 3,461 72.98 Vested (6,910 ) 49.17 Forfeited (246 ) 59.22 Outstanding as of December 31, 2015 8,736 61.59 Granted 4,336 52.49 Vested (4,897 ) 56.18 Forfeited (361 ) 60.12 Outstanding as of December 31, 2016 7,814 $ 60.01 |
Schedule of Performance Awards | Shares (In thousands) Weighted-Average Grant Date Fair Value Performance Awards: Outstanding as of December 31, 2014 1,627 $ 49.46 Granted 400 72.24 Forfeited (1 ) 41.02 Paid out (861 ) 45.09 Outstanding as of December 31, 2015 1,165 60.45 Granted 506 50.81 Forfeited — — Paid out (424 ) 49.27 Outstanding as of December 31, 2016 1,247 $ 60.37 |
Occupancy Expense and Informa52
Occupancy Expense and Information Systems and Communications Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Occupancy Expense and Information Systems and Communications Expense [Abstract] | |
Summary of Future Minimum Lease Payments Under Non Cancelable Capital and Operating Leases | The following table presents a summary of future minimum lease payments under non-cancelable capital and operating leases as of December 31, 2016 . Aggregate future minimum rental commitments have been reduced by aggregate sublease rental commitments of $43 million for capital leases and $16 million for operating leases. (In millions) Capital Leases Operating Leases Total 2017 $ 57 $ 205 $ 262 2018 53 185 238 2019 46 138 184 2020 45 123 168 2021 45 118 163 Thereafter 79 380 459 Total minimum lease payments 325 $ 1,149 $ 1,474 Less amount representing interest payments (76 ) Present value of minimum lease payments $ 249 |
Expenses (Tables)
Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Expenses [Abstract] | |
Schedule of Expenses | The following table presents the components of other expenses for the periods indicated: Years Ended December 31, (In millions) 2016 2015 2014 Insurance $ 93 $ 126 $ 80 Regulatory fees and assessments 82 115 74 Litigation 50 422 173 Securities processing 42 79 68 Other 317 276 356 Total other expenses $ 584 $ 1,018 $ 751 |
Restructuring and Related Costs | The following table presents aggregate restructuring activity for the periods indicated. (In millions) Employee Real Estate Asset and Other Write-offs Total Balance at December 31, 2013 $ 52 $ 47 $ 7 $ 106 Accruals for Business Operations and IT 32 22 21 75 Payments and other adjustments (45 ) (46 ) (21 ) (112 ) Balance at December 31, 2014 $ 39 $ 23 $ 7 $ 69 Accruals for Business Operations and IT (5 ) (3 ) 13 5 Payments and other adjustments (25 ) (9 ) (17 ) (51 ) Balance at December 31, 2015 $ 9 $ 11 $ 3 $ 23 Accruals for Business Operations and IT (2 ) — — (2 ) Accruals for State Street Beacon 94 18 30 142 Payments and other adjustments (64 ) (12 ) (31 ) (107 ) Balance at December 31, 2016 $ 37 $ 17 $ 2 $ 56 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the components of income tax expense (benefit) for the years ended December 31 : (In millions) 2016 2015 2014 Current: Federal $ (14 ) $ 52 $ 59 State 30 92 39 Non-U.S. 320 342 257 Total current expense 336 486 355 Deferred: Federal (311 ) (39 ) 38 State 38 40 10 Non-U.S. (85 ) (169 ) 12 Total deferred (benefit) expense (358 ) (168 ) 60 Total income tax expense (benefit) $ (22 ) $ 318 $ 415 |
Schedule of Deferred Tax Assets and Liabilities | The following table presents significant components of our gross deferred tax assets and gross deferred tax liabilities as of December 31 : (In millions) 2016 2015 Deferred tax assets: Unrealized losses on investment securities, net $ 157 $ 57 Deferred compensation 285 167 Defined benefit pension plan 116 143 Restructuring charges and other reserves 199 383 Foreign currency translation 225 155 Tax credit carryforwards 425 — Other 105 32 Total deferred tax assets 1,512 937 Valuation allowance for deferred tax assets (66 ) (27 ) Deferred tax assets, net of valuation allowance $ 1,446 $ 910 Deferred tax liabilities: Leveraged lease financing $ 313 $ 334 Fixed and intangible assets 886 804 Non-U.S. earnings 164 265 Other 120 121 Total deferred tax liabilities $ 1,483 $ 1,524 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of the U.S. statutory income tax rate to our effective tax rate based on income before income tax expense for the years ended December 31 : 2016 2015 2014 U.S. federal income tax rate 35.0 % 35.0 % 35.0 % Changes from statutory rate: State taxes, net of federal benefit 2.0 4.2 1.5 Tax-exempt income (6.1 ) (5.6 ) (5.1 ) Business tax credits (1) (13.6 ) (9.4 ) (6.8 ) Foreign tax differential (7.7 ) (9.6 ) (8.5 ) Foreign designated earnings (6.8 ) — — Foreign capital transactions (4.3 ) — — Tax refund — (2.8 ) — Litigation expense 1.4 2.7 1.3 Other, net (0.9 ) (0.7 ) (0.3 ) Effective tax rate (1.0 )% 13.8 % 17.1 % (1) Business tax credits include low-income housing, production and investment tax credits. |
Summary of Income Tax Contingencies | The following table presents activity related to unrecognized tax benefits as of December 31 : (In millions) 2016 2015 Beginning balance $ 63 $ 163 Decrease related to agreements with tax authorities (13 ) (122 ) Increase related to tax positions taken during current year 7 8 Increase related to tax positions taken during prior year 14 14 Ending balance $ 71 $ 63 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per common share for the years indicated: Years Ended December 31, (Dollars in millions, except per share amounts) 2016 2015 2014 Net income $ 2,143 $ 1,980 $ 2,022 Less: Preferred stock dividends (173 ) (130 ) (61 ) Dividends and undistributed earnings allocated to participating securities (1) (2 ) (2 ) (3 ) Net income available to common shareholders $ 1,968 $ 1,848 $ 1,958 Average common shares outstanding (In thousands): Basic average common shares 391,485 407,856 424,223 Effect of dilutive securities: common stock options and common stock awards 4,605 5,782 7,784 Diluted average common shares 396,090 413,638 432,007 Anti-dilutive securities (2) 2,143 661 1,498 Earnings per Common Share: Basic $ 5.03 $ 4.53 $ 4.62 Diluted (3) 4.97 4.47 4.53 (1) Represents the portion of net income available to common equity allocated to participating securities, composed of fully vested deferred director stock and unvested restricted stock that contain non-forfeitable rights to dividends during the vesting period on a basis equivalent to dividends paid to common shareholders. (2) Represents common stock options and other equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive. Refer to Note 18 for additional information about equity-based awards. (3) Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method. |
Line of Business Information (T
Line of Business Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of Line of Business Results | Years Ended December 31, Investment Investment Other Total (Dollars in millions, except where otherwise noted) 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 Servicing fees $ 5,073 $ 5,153 $ 5,108 $ — $ — $ — $ — $ — $ — $ 5,073 $ 5,153 $ 5,108 Management fees — — — 1,292 1,174 1,207 — — — 1,292 1,174 1,207 Trading services 1,052 1,108 1,039 47 38 45 — — — 1,099 1,146 1,084 Securities finance 562 496 437 — — — — — — 562 496 437 Processing fees and other 105 325 179 (15 ) (16 ) (5 ) — — — 90 309 174 Total fee revenue 6,792 7,082 6,763 1,324 1,196 1,247 — — — 8,116 8,278 8,010 Net interest revenue 2,081 2,086 2,245 3 2 15 — — — 2,084 2,088 2,260 Gains (losses) related to investment securities, net 7 (6 ) 4 — — — — — — 7 (6 ) 4 Total revenue 8,880 9,162 9,012 1,327 1,198 1,262 — — — 10,207 10,360 10,274 Provision for loan losses 10 12 10 — — — — — — 10 12 10 Total expenses 6,660 6,990 6,648 1,218 962 960 199 98 219 8,077 8,050 7,827 Income before income tax expense $ 2,210 $ 2,160 $ 2,354 $ 109 $ 236 $ 302 $ (199 ) $ (98 ) $ (219 ) $ 2,120 $ 2,298 $ 2,437 Pre-tax margin 25 % 24 % 26 % 8 % 20 % 24 % 21 % 22 % 24 % Average assets (in billions) $ 225.3 $ 246.6 $ 234.2 $ 4.4 $ 3.9 $ 3.9 $ 229.7 $ 250.5 $ 238.1 |
Non-U.S. Activities (Tables)
Non-U.S. Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Results from Non-U.S. Operations | The following table presents our U.S. and non-U.S. financial results for the periods indicated: 2016 2015 2014 (In millions) Non-U.S. U.S. Total Non-U.S. U.S. Total Non-U.S. U.S. Total Total revenue $ 4,419 $ 5,788 $ 10,207 $ 4,428 $ 5,932 $ 10,360 $ 4,644 $ 5,630 $ 10,274 Income before income taxes 1,047 1,073 2,120 1,193 1,105 2,298 1,343 1,094 2,437 |
Parent Company Financial Stat58
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information Statement of Income of Parent Company | STATEMENT OF INCOME - PARENT COMPANY Years Ended December 31, (In millions) 2016 2015 2014 Cash dividends from consolidated banking subsidiary $ 640 $ 585 $ 1,470 Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities 75 171 138 Other, net 92 73 63 Total revenue 807 829 1,671 Interest expense 249 209 193 Other expenses 107 310 55 Total expenses 356 519 248 Income tax benefit (47 ) (186 ) (83 ) Income before equity in undistributed income of consolidated subsidiaries and unconsolidated entities 498 496 1,506 Equity in undistributed income of consolidated subsidiaries and unconsolidated entities: Consolidated banking subsidiary 1,629 1,384 360 Consolidated non-banking subsidiaries and unconsolidated entities 16 100 156 Net income $ 2,143 $ 1,980 $ 2,022 |
Condensed Financial Information Statement of Condition of Parent Company | STATEMENT OF CONDITION - PARENT COMPANY December 31, (In millions) 2016 2015 Assets: Interest-bearing deposits with consolidated banking subsidiary $ 3,635 $ 5,735 Trading account assets 325 308 Investment securities available-for-sale 39 35 Investments in subsidiaries: Consolidated banking subsidiary 22,147 20,584 Consolidated non-banking subsidiaries 2,687 2,816 Unconsolidated entities 297 315 Notes and other receivables from: Consolidated banking subsidiary 2,743 1,558 Consolidated non-banking subsidiaries and unconsolidated entities 126 275 Other assets 461 478 Total assets $ 32,460 $ 32,104 Liabilities: Accrued expenses and other liabilities $ 514 $ 643 Long-term debt 10,727 10,326 Total liabilities 11,241 10,969 Shareholders’ equity 21,219 21,135 Total liabilities and shareholders’ equity $ 32,460 $ 32,104 |
Condensed Financial Information Statement of Cash Flows of Parent Company | STATEMENT OF CASH FLOWS - PARENT COMPANY Years Ended December 31, (In millions) 2016 2015 2014 Net cash provided by operating activities $ 417 $ 926 $ 1,767 Investing Activities: Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary 2,100 295 (1,610 ) Investments in consolidated banking and non-banking subsidiaries (7,600 ) (7,959 ) (1,142 ) Sale or repayment of investment in consolidated banking and non-banking subsidiaries 6,703 7,891 1,011 Business acquisitions (395 ) — — Net cash provided by (used in) investing activities 808 227 (1,741 ) Financing Activities: Net increase (decrease) in commercial paper — (2,485 ) 667 Proceeds from issuance of long-term debt, net of issuance costs 1,492 2,983 994 Payments for long-term debt (1,000 ) — (750 ) Proceeds from issuance of preferred stock, net of issuance costs 493 742 1,470 Proceeds from exercises of common stock options — 4 14 Purchases of common stock (1,365 ) (1,520 ) (1,650 ) Repurchases of common stock for employee tax withholding (122 ) (222 ) (232 ) Payments for cash dividends (723 ) (655 ) (539 ) Net cash used in financing activities (1,225 ) (1,153 ) (26 ) Net change — — — Cash and due from banks at beginning of year — — — Cash and due from banks at end of year $ — $ — $ — |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Basis of Presentation (Details) $ in Millions | Jul. 01, 2016USD ($) | Dec. 31, 2016line_of_business |
Business Acquisition [Line Items] | ||
Number of lines of business | line_of_business | 2 | |
GEAM | ||
Business Acquisition [Line Items] | ||
Purchase price | $ 485 | |
Assets under management | $ 112,000 |
Summary of Significant Accoun60
Summary of Significant Accounting Policies - New Accounting Pronouncement (Details) - USD ($) $ in Millions | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Decrease in surplus | $ 9,782 | $ 9,746 | |
Accounting Standards Update 2015-03 | Long-term debt | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Debt issuance costs | $ 38 | $ 37 | |
Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Decrease in surplus | $ (352) | ||
Accounting Standards Update 2016-09 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase in retained earnings | $ 352 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Assets, level 1 to level 2 transfers | $ 0 | $ 0 |
Assets, level 2 to level 1 transfers | 0 | 0 |
Liabilities, level 1 to level 2 transfers | 0 | 0 |
Liabilities, level 2 to level 1 transfers | $ 0 | $ 0 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | $ 1,024 | $ 849 |
Investment securities available-for-sale | 61,998 | 70,070 |
Derivative, collateral, cash offset | (776) | |
Derivative collateral, cash offset | (1,120) | |
Collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 905 | 1,764 |
Non-US debt securities, covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 3,769 | 3,184 |
Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 988 | 613 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 1,024 | 849 |
Investment securities available-for-sale | 61,998 | 70,070 |
Derivative asset, Impact of Netting | (9,231) | (6,679) |
Derivative assets | 7,321 | 4,777 |
Other assets | 2 | |
Total | 70,343 | 75,698 |
Derivative liability, Impact of Netting | (10,682) | (7,021) |
Derivative liabilities | 6,002 | 4,132 |
Other liabilities | 2 | |
Total liabilities carried at fair value | 6,002 | 4,233 |
Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liabilities | 5 | |
Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liabilities | 76 | |
Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liabilities | 18 | |
Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | (9,163) | (6,562) |
Derivative assets | 7,321 | 4,754 |
Derivative liability, Impact of Netting | (10,456) | (6,995) |
Derivative liabilities | 5,500 | 3,873 |
Recurring | Interest-rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | (68) | (115) |
Derivative assets | 0 | 20 |
Derivative liability, Impact of Netting | (226) | (24) |
Derivative liabilities | 122 | 158 |
Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | (2) | |
Derivative assets | 3 | |
Derivative liability, Impact of Netting | 0 | (2) |
Derivative liabilities | 380 | 101 |
Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 30 | 32 |
Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 669 | 479 |
Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 325 | 338 |
Investment securities available-for-sale | 2,469 | 2,624 |
Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 4,263 | 5,718 |
Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 13,257 | 18,165 |
Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,596 | 7,176 |
Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,351 | 1,341 |
Recurring | Asset-backed securities, sub-prime | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 272 | 419 |
Recurring | Asset-backed securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 905 | 1,764 |
Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 8,124 | 10,700 |
Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,535 | 7,071 |
Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,516 | 3,267 |
Recurring | Non-U.S. debt securities, Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,836 | 4,355 |
Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,613 | 4,834 |
Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 20,500 | 19,527 |
Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 10,322 | 9,746 |
Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,593 | 2,987 |
Recurring | U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 42 | 39 |
Recurring | Non-U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 3 | 3 |
Recurring | U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 409 | 542 |
Recurring | Non-U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 16 | 19 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 525 | 521 |
Investment securities available-for-sale | 3,824 | 5,206 |
Derivative asset | 0 | 0 |
Other assets | 2 | |
Total | 4,349 | 5,729 |
Derivative liability | 0 | 0 |
Other liabilities | 2 | |
Total liabilities carried at fair value | 0 | 88 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liabilities | 5 | |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liabilities | 76 | |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liabilities | 5 | |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Interest-rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Derivative liability | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 30 | 32 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 495 | 479 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 10 |
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 3,824 | 5,206 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, sub-prime | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 499 | 328 |
Investment securities available-for-sale | 56,837 | 62,400 |
Derivative asset | 16,544 | 11,451 |
Other assets | 0 | |
Total | 73,880 | 74,179 |
Derivative liability | 16,676 | 11,148 |
Other liabilities | 0 | |
Total liabilities carried at fair value | 16,676 | 11,161 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liabilities | 0 | |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liabilities | 0 | |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liabilities | 13 | |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 16,476 | 11,311 |
Derivative liability | 15,948 | 10,863 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Interest-rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 68 | 135 |
Derivative liability | 348 | 182 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 5 | |
Derivative liability | 380 | 103 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 174 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 325 | 328 |
Investment securities available-for-sale | 2,469 | 2,614 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 439 | 512 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 13,257 | 18,165 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,499 | 6,987 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,351 | 1,341 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, sub-prime | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 272 | 419 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 7,122 | 8,747 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,535 | 7,071 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,484 | 3,093 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,836 | 4,355 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,365 | 4,579 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 20,220 | 19,098 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 10,283 | 9,713 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,577 | 2,948 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 42 | 39 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 3 | 3 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 409 | 542 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 16 | 19 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Investment securities available-for-sale | 1,337 | 2,464 |
Derivative asset | 8 | 5 |
Other assets | 0 | |
Total | 1,345 | 2,469 |
Derivative liability | 8 | 5 |
Other liabilities | 0 | |
Total liabilities carried at fair value | 8 | 5 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liabilities | 0 | |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liabilities | 0 | |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading liabilities | 0 | |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 8 | 5 |
Derivative liability | 8 | 5 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Interest-rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Derivative liability | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Investment securities available-for-sale | 0 | 10 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 97 | 189 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, sub-prime | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 905 | 1,764 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,002 | 1,953 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 32 | 174 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 248 | 255 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 280 | 429 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 39 | 33 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 16 | 39 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 0 | $ 0 |
Fair Value - Schedule of Fair63
Fair Value - Schedule of Fair Value Measurements, Assets, Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | $ 2,469 | $ 5,447 |
Total realized and unrealized gain (losses) recorded in revenue | 41 | 104 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (9) | (61) |
Purchases | 1,394 | 706 |
Sales | (148) | (1,193) |
Settlements | (1,370) | (1,390) |
Transfers into Level 3 | 111 | |
Transfers out of Level 3 | (1,032) | (1,255) |
Fair value, end of period | 1,345 | 2,469 |
Change in unrealized gains (losses) related to financial instruments held | 5 | (4) |
Derivative instruments, assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 5 | 81 |
Total realized and unrealized gain (losses) recorded in revenue | 9 | 48 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 |
Purchases | 3 | 9 |
Sales | 0 | 0 |
Settlements | (9) | (133) |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 8 | 5 |
Change in unrealized gains (losses) related to financial instruments held | 5 | (4) |
Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 5 | 81 |
Total realized and unrealized gain (losses) recorded in revenue | 9 | 48 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 |
Purchases | 3 | 9 |
Sales | 0 | 0 |
Settlements | (9) | (133) |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 8 | 5 |
Change in unrealized gains (losses) related to financial instruments held | 5 | (4) |
Investment securities available for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 2,464 | 5,366 |
Total realized and unrealized gain (losses) recorded in revenue | 32 | 56 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (9) | (61) |
Purchases | 1,391 | 697 |
Sales | (148) | (1,193) |
Settlements | (1,361) | (1,257) |
Transfers into Level 3 | 111 | |
Transfers out of Level 3 | (1,032) | (1,255) |
Fair value, end of period | 1,337 | 2,464 |
US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 0 | |
Total realized and unrealized gain (losses) recorded in revenue | 0 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | |
Purchases | 325 | |
Sales | 0 | |
Settlements | 0 | |
Transfers out of Level 3 | (325) | |
Fair value, end of period | 0 | 0 |
Asset-backed securities, student loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 189 | 259 |
Total realized and unrealized gain (losses) recorded in revenue | 1 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 3 | (4) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | (6) |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (96) | (61) |
Fair value, end of period | 97 | 189 |
Asset-backed securities, other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 1,764 | 3,780 |
Total realized and unrealized gain (losses) recorded in revenue | 31 | 53 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (23) | (50) |
Purchases | 469 | 0 |
Sales | (82) | (1,105) |
Settlements | (1,254) | (914) |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 905 | 1,764 |
Total asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 1,953 | 4,039 |
Total realized and unrealized gain (losses) recorded in revenue | 32 | 54 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (20) | (54) |
Purchases | 469 | 0 |
Sales | (82) | (1,105) |
Settlements | (1,254) | (920) |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (96) | (61) |
Fair value, end of period | 1,002 | 1,953 |
Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 0 | 0 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 |
Purchases | 90 | 43 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 97 | |
Transfers out of Level 3 | (90) | (140) |
Fair value, end of period | 0 | 0 |
Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 174 | 295 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 2 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | (1) |
Purchases | 196 | 249 |
Sales | 0 | 0 |
Settlements | (60) | (190) |
Transfers into Level 3 | 4 | |
Transfers out of Level 3 | (278) | (185) |
Fair value, end of period | 32 | 174 |
Non-U.S. debt securities, other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 255 | 371 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | (1) |
Purchases | 222 | 111 |
Sales | 0 | 0 |
Settlements | (7) | (39) |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (222) | (187) |
Fair value, end of period | 248 | 255 |
Total non-U.S. debt securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 429 | 666 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 2 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | (2) |
Purchases | 508 | 403 |
Sales | 0 | 0 |
Settlements | (67) | (229) |
Transfers into Level 3 | 101 | |
Transfers out of Level 3 | (590) | (512) |
Fair value, end of period | 280 | 429 |
State and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 33 | 38 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 9 | (3) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | (3) | (3) |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 39 | 33 |
Collateralized mortgage obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 39 | 614 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | (1) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 2 | (2) |
Purchases | 89 | 294 |
Sales | (66) | (88) |
Settlements | (27) | (105) |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (21) | (673) |
Fair value, end of period | 16 | 39 |
Other U.S. debt securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 10 | 9 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | (10) | 0 |
Transfers into Level 3 | 10 | |
Transfers out of Level 3 | 0 | (9) |
Fair value, end of period | $ 0 | $ 10 |
Fair Value - Fair Value Inputs,
Fair Value - Fair Value Inputs, Assets and Liabilities, Quantitative Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | $ 61,998 | $ 70,070 |
Asset-backed securities, other | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | 905 | 1,764 |
State and political subdivisions | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | $ 10,322 | $ 9,746 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Discounted cash flows | Asset-backed securities, other | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Credit spread | 0.30% | (0.10%) |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Discounted cash flows | State and political subdivisions | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Credit spread | 1.80% | 2.20% |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Option model | Derivative instruments, liabilities | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Volatility | 14.40% | 9.20% |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Option model | Derivative instruments, assets | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Volatility | 14.40% | 9.30% |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Total | $ 48 | $ 66 |
Total | 8 | 5 |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, liabilities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative instruments, foreign exchange contracts | 8 | 5 |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, assets | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative instruments, foreign exchange contracts | 8 | 5 |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Asset-backed securities, other | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | 1 | 28 |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | State and political subdivisions | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | $ 39 | $ 33 |
Fair Value - Carrying Value and
Fair Value - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financial Assets: | ||||
Cash and due from banks | $ 1,314 | $ 1,207 | $ 1,855 | $ 3,220 |
Interest-bearing deposits with banks | 70,935 | 75,338 | ||
Securities purchased under resale agreements | 1,956 | 3,404 | ||
Held to maturity, fair value | 34,994 | 29,798 | ||
Financial Liabilities: | ||||
Noninterest-bearing | 59,397 | 65,800 | ||
Interest-bearing—U.S. | 30,911 | 29,958 | ||
Interest-bearing—non-U.S. | 96,855 | 95,869 | ||
Securities sold under repurchase agreements | 4,400 | 4,499 | ||
Other short-term borrowings | 1,585 | 1,754 | ||
Reported Amount | ||||
Financial Assets: | ||||
Cash and due from banks | 1,314 | 1,207 | ||
Interest-bearing deposits with banks | 70,935 | 75,338 | ||
Securities purchased under resale agreements | 1,956 | 3,404 | ||
Held to maturity, fair value | 35,169 | 29,952 | ||
Net loans (excluding leases) | 18,862 | 17,838 | ||
Financial Liabilities: | ||||
Noninterest-bearing | 59,397 | 65,800 | ||
Interest-bearing—U.S. | 30,911 | 29,958 | ||
Interest-bearing—non-U.S. | 96,855 | 95,869 | ||
Securities sold under repurchase agreements | 4,400 | 4,499 | ||
Other short-term borrowings | 1,585 | 1,754 | ||
Long-term debt | 11,430 | 11,497 | ||
Estimated Fair Value | ||||
Financial Assets: | ||||
Cash and due from banks | 1,314 | 1,207 | ||
Interest-bearing deposits with banks | 70,935 | 75,338 | ||
Securities purchased under resale agreements | 1,956 | 3,404 | ||
Held to maturity, fair value | 34,994 | 29,798 | ||
Net loans (excluding leases) | 18,877 | 17,792 | ||
Financial Liabilities: | ||||
Noninterest-bearing | 59,397 | 65,800 | ||
Interest-bearing—U.S. | 30,911 | 29,958 | ||
Interest-bearing—non-U.S. | 96,855 | 95,869 | ||
Securities sold under repurchase agreements | 4,400 | 4,499 | ||
Other short-term borrowings | 1,585 | 1,754 | ||
Long-term debt | 11,618 | 11,604 | ||
Estimated Fair Value | Fair Value, Measurements, Nonrecurring | ||||
Financial Assets: | ||||
Net loans (excluding leases) | 14 | |||
Estimated Fair Value | Quoted Market Prices in Active Markets (Level 1) | ||||
Financial Assets: | ||||
Cash and due from banks | 1,314 | 1,207 | ||
Interest-bearing deposits with banks | 0 | 0 | ||
Securities purchased under resale agreements | 0 | 0 | ||
Held to maturity, fair value | 17,400 | 0 | ||
Net loans (excluding leases) | 0 | 0 | ||
Financial Liabilities: | ||||
Noninterest-bearing | 0 | 0 | ||
Interest-bearing—U.S. | 0 | 0 | ||
Interest-bearing—non-U.S. | 0 | 0 | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Other short-term borrowings | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Estimated Fair Value | Pricing Methods with Significant Observable Market Inputs (Level 2) | ||||
Financial Assets: | ||||
Cash and due from banks | 0 | 0 | ||
Interest-bearing deposits with banks | 70,935 | 75,338 | ||
Securities purchased under resale agreements | 1,956 | 3,404 | ||
Held to maturity, fair value | 17,439 | 29,798 | ||
Net loans (excluding leases) | 18,781 | 17,667 | ||
Financial Liabilities: | ||||
Noninterest-bearing | 59,397 | 65,800 | ||
Interest-bearing—U.S. | 30,911 | 29,958 | ||
Interest-bearing—non-U.S. | 96,855 | 95,869 | ||
Securities sold under repurchase agreements | 4,400 | 4,499 | ||
Other short-term borrowings | 1,585 | 1,754 | ||
Long-term debt | 11,282 | 11,215 | ||
Estimated Fair Value | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||||
Financial Assets: | ||||
Cash and due from banks | 0 | 0 | ||
Interest-bearing deposits with banks | 0 | 0 | ||
Securities purchased under resale agreements | 0 | 0 | ||
Held to maturity, fair value | 155 | 0 | ||
Net loans (excluding leases) | 96 | 125 | ||
Financial Liabilities: | ||||
Noninterest-bearing | 0 | 0 | ||
Interest-bearing—U.S. | 0 | 0 | ||
Interest-bearing—non-U.S. | 0 | 0 | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Other short-term borrowings | 0 | 0 | ||
Long-term debt | $ 336 | $ 389 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Net impairment losses | $ 3,000,000 | $ 1,000,000 | $ 11,000,000 | ||
Pledged securities not separately reported | $ 46,000,000,000 | $ 41,000,000,000 | 46,000,000,000 | 41,000,000,000 | |
Available for sale securities transferred to held to maturity | $ 4,900,000,000 | $ 7,100,000,000 | |||
Unrealized gain | 87,000,000 | 89,000,000 | |||
Minimum | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Remaining life of transferred securities | 7 years | ||||
Maximum | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Remaining life of transferred securities | 49 years | ||||
Agency Securities | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Net impairment losses | 0 | 0 | 0 | ||
Federal family education loan program | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Net impairment losses | $ 0 | 0 | 0 | ||
Average term on asset backed securities | 4 years 1 month 6 days | ||||
Available-for-sale Securities, Downgraded by Ratings Agency | $ 1,700,000,000 | ||||
Available-for-sale Securities, Credit Watch | $ 2,200,000,000 | $ 2,200,000,000 | |||
Asset-backed securities, student loans | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Net impairment losses | 0 | 0 | 0 | ||
Less than maximum credit exposure | 200,000,000 | ||||
Non-U.S. debt securities, mortgage-backed securities | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Net impairment losses | $ 2,000,000 | 1,000,000 | 1,000,000 | ||
Non-U.S. debt securities, mortgage-backed securities | Minimum | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Additional price declines forecast, percent | 3.00% | ||||
Non-U.S. debt securities, mortgage-backed securities | Maximum | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Additional price declines forecast, percent | 23.00% | ||||
State and political subdivisions | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Net impairment losses | $ 0 | 0 | 0 | ||
U.S. Non-Agency Residential Mortgage-Backed Securities | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Net impairment losses | 0 | 0 | 0 | ||
U.S. Non-Agency Commercial Mortgage Backed Securities [Member] | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Net impairment losses | 1,000,000 | $ 0 | $ 10,000,000 | ||
Gross pre-tax unrealized losses | $ 820,000,000 | ||||
Number of securities in loss position | security | 1,727 |
Investment Securities - Schedul
Investment Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | $ 62,056 | $ 69,843 |
Available for sale, gross unrealized gains | 427 | 735 |
Available for sale, gross unrealized losses | 485 | 508 |
Investment securities available-for-sale | 61,998 | 70,070 |
Held to maturity, amortized cost | 35,169 | 29,952 |
Held to maturity, gross unrealized gains | 160 | 179 |
Held to maturity, gross unrealized losses | 335 | 333 |
Held to maturity, fair value | 34,994 | 29,798 |
US Treasury and federal agencies, direct obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 4,265 | 5,717 |
Available for sale, gross unrealized gains | 7 | 6 |
Available for sale, gross unrealized losses | 9 | 5 |
Investment securities available-for-sale | 4,263 | 5,718 |
Held to maturity, amortized cost | 17,527 | 20,878 |
Held to maturity, gross unrealized gains | 17 | 2 |
Held to maturity, gross unrealized losses | 58 | 217 |
Held to maturity, fair value | 17,486 | 20,663 |
US Treasury and federal agencies, mortgage-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 13,340 | 18,168 |
Available for sale, gross unrealized gains | 76 | 131 |
Available for sale, gross unrealized losses | 159 | 134 |
Investment securities available-for-sale | 13,257 | 18,165 |
Held to maturity, amortized cost | 10,334 | 610 |
Held to maturity, gross unrealized gains | 20 | 2 |
Held to maturity, gross unrealized losses | 221 | 8 |
Held to maturity, fair value | 10,133 | 604 |
Asset-backed securities, student loans | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 5,659 | 7,358 |
Available for sale, gross unrealized gains | 12 | 16 |
Available for sale, gross unrealized losses | 75 | 198 |
Investment securities available-for-sale | 5,596 | 7,176 |
Held to maturity, amortized cost | 2,883 | 1,592 |
Held to maturity, gross unrealized gains | 5 | 0 |
Held to maturity, gross unrealized losses | 30 | 47 |
Held to maturity, fair value | 2,858 | 1,545 |
Asset-backed securities, credit cards | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,377 | 1,378 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | 26 | 37 |
Investment securities available-for-sale | 1,351 | 1,341 |
Held to maturity, amortized cost | 897 | 897 |
Held to maturity, gross unrealized gains | 2 | 0 |
Held to maturity, gross unrealized losses | 0 | 1 |
Held to maturity, fair value | 899 | 896 |
Asset-backed securities, sub-prime | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 289 | 448 |
Available for sale, gross unrealized gains | 1 | 2 |
Available for sale, gross unrealized losses | 18 | 31 |
Investment securities available-for-sale | 272 | 419 |
Asset-backed securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 895 | 1,724 |
Available for sale, gross unrealized gains | 10 | 43 |
Available for sale, gross unrealized losses | 0 | 3 |
Investment securities available-for-sale | 905 | 1,764 |
Held to maturity, amortized cost | 35 | 366 |
Held to maturity, gross unrealized gains | 0 | 2 |
Held to maturity, gross unrealized losses | 0 | 1 |
Held to maturity, fair value | 35 | 367 |
Total asset-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 8,220 | 10,908 |
Available for sale, gross unrealized gains | 23 | 61 |
Available for sale, gross unrealized losses | 119 | 269 |
Investment securities available-for-sale | 8,124 | 10,700 |
Held to maturity, amortized cost | 3,815 | 2,855 |
Held to maturity, gross unrealized gains | 7 | 2 |
Held to maturity, gross unrealized losses | 30 | 49 |
Held to maturity, fair value | 3,792 | 2,808 |
Non-U.S. debt securities, mortgage-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 6,506 | 7,010 |
Available for sale, gross unrealized gains | 35 | 72 |
Available for sale, gross unrealized losses | 6 | 11 |
Investment securities available-for-sale | 6,535 | 7,071 |
Held to maturity, amortized cost | 1,150 | 2,202 |
Held to maturity, gross unrealized gains | 70 | 109 |
Held to maturity, gross unrealized losses | 15 | 26 |
Held to maturity, fair value | 1,205 | 2,285 |
Non-U.S. debt securities, asset-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 2,513 | 3,272 |
Available for sale, gross unrealized gains | 4 | 2 |
Available for sale, gross unrealized losses | 1 | 7 |
Investment securities available-for-sale | 2,516 | 3,267 |
Held to maturity, amortized cost | 531 | 1,415 |
Held to maturity, gross unrealized gains | 0 | 4 |
Held to maturity, gross unrealized losses | 0 | 3 |
Held to maturity, fair value | 531 | 1,416 |
Non-U.S. debt securities, Government securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 5,834 | 4,348 |
Available for sale, gross unrealized gains | 8 | 7 |
Available for sale, gross unrealized losses | 6 | 0 |
Investment securities available-for-sale | 5,836 | 4,355 |
Held to maturity, amortized cost | 286 | 239 |
Held to maturity, gross unrealized gains | 3 | 0 |
Held to maturity, gross unrealized losses | 0 | 1 |
Held to maturity, fair value | 289 | 238 |
Non-U.S. debt securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 5,587 | 4,817 |
Available for sale, gross unrealized gains | 31 | 29 |
Available for sale, gross unrealized losses | 5 | 12 |
Investment securities available-for-sale | 5,613 | 4,834 |
Held to maturity, amortized cost | 113 | 65 |
Held to maturity, gross unrealized gains | 1 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Held to maturity, fair value | 114 | 65 |
Total non-U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 20,440 | 19,447 |
Available for sale, gross unrealized gains | 78 | 110 |
Available for sale, gross unrealized losses | 18 | 30 |
Investment securities available-for-sale | 20,500 | 19,527 |
Held to maturity, amortized cost | 2,080 | 3,921 |
Held to maturity, gross unrealized gains | 74 | 113 |
Held to maturity, gross unrealized losses | 15 | 30 |
Held to maturity, fair value | 2,139 | 4,004 |
State and political subdivisions | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 10,233 | 9,402 |
Available for sale, gross unrealized gains | 201 | 371 |
Available for sale, gross unrealized losses | 112 | 27 |
Investment securities available-for-sale | 10,322 | 9,746 |
Held to maturity, amortized cost | 0 | 1 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Held to maturity, fair value | 0 | 1 |
Collateralized mortgage obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 2,610 | 2,993 |
Available for sale, gross unrealized gains | 18 | 16 |
Available for sale, gross unrealized losses | 35 | 22 |
Investment securities available-for-sale | 2,593 | 2,987 |
Held to maturity, amortized cost | 1,413 | 1,687 |
Held to maturity, gross unrealized gains | 42 | 60 |
Held to maturity, gross unrealized losses | 11 | 29 |
Held to maturity, fair value | 1,444 | 1,718 |
Other U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 2,481 | 2,611 |
Available for sale, gross unrealized gains | 18 | 31 |
Available for sale, gross unrealized losses | 30 | 18 |
Investment securities available-for-sale | 2,469 | 2,624 |
U.S. equity securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 39 | 33 |
Available for sale, gross unrealized gains | 6 | 9 |
Available for sale, gross unrealized losses | 3 | 3 |
Investment securities available-for-sale | 42 | 39 |
Non-U.S. equity securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 3 | 3 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | 0 | 0 |
Investment securities available-for-sale | 3 | 3 |
U.S. money-market mutual funds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 409 | 542 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | 0 | 0 |
Investment securities available-for-sale | 409 | 542 |
Non-U.S. money-market mutual funds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 16 | 19 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | 0 | 0 |
Investment securities available-for-sale | $ 16 | 19 |
Federal family education loan program | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Federal government credit support guarantee, percentage minimum | 97.00% | |
Collateralized loan obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | $ 905 | 1,764 |
Non-US debt securities, covered bonds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | 3,769 | 3,184 |
Non-U.S. debt securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | $ 988 | $ 613 |
Investment Securities - Sched68
Investment Securities - Schedule of Gross Pre-Tax Unrealized Losses on Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | $ 16,928 | $ 22,336 |
Available for sale, gross unrealized losses less than 12 months | 308 | 159 |
Available for sale, fair value 12 months or longer | 7,800 | 9,468 |
Available for sale, gross unrealized losses 12 months or longer | 177 | 349 |
Available for sale, fair value total | 24,728 | 31,804 |
Available for sale, gross unrealized losses total | 485 | 508 |
Held to maturity, fair value less than 12 months | 17,284 | 20,679 |
Held-to-maturity, gross, less than 12 months | 293 | 169 |
Held to maturity, fair value 12 months or longer | 1,899 | 4,824 |
Held to maturity, gross unrealized losses 12 months or longer | 42 | 164 |
Held to maturity, fair value total | 19,183 | 25,503 |
Held to maturity, gross unrealized losses total | 335 | 333 |
US Treasury and federal agencies, direct obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 651 | 3,123 |
Available for sale, gross unrealized losses less than 12 months | 8 | 4 |
Available for sale, fair value 12 months or longer | 180 | 121 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 1 |
Available for sale, fair value total | 831 | 3,244 |
Available for sale, gross unrealized losses total | 9 | 5 |
Held to maturity, fair value less than 12 months | 8,891 | 16,370 |
Held-to-maturity, gross, less than 12 months | 57 | 120 |
Held to maturity, fair value 12 months or longer | 86 | 3,005 |
Held to maturity, gross unrealized losses 12 months or longer | 1 | 97 |
Held to maturity, fair value total | 8,977 | 19,375 |
Held to maturity, gross unrealized losses total | 58 | 217 |
US Treasury and federal agencies, mortgage-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 7,072 | 5,729 |
Available for sale, gross unrealized losses less than 12 months | 131 | 48 |
Available for sale, fair value 12 months or longer | 1,114 | 3,166 |
Available for sale, gross unrealized losses 12 months or longer | 28 | 86 |
Available for sale, fair value total | 8,186 | 8,895 |
Available for sale, gross unrealized losses total | 159 | 134 |
Held to maturity, fair value less than 12 months | 6,838 | 560 |
Held-to-maturity, gross, less than 12 months | 221 | 8 |
Held to maturity, fair value 12 months or longer | 0 | 0 |
Held to maturity, gross unrealized losses 12 months or longer | 0 | 0 |
Held to maturity, fair value total | 6,838 | 560 |
Held to maturity, gross unrealized losses total | 221 | 8 |
Asset-backed securities, student loans | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 54 | 2,841 |
Available for sale, gross unrealized losses less than 12 months | 0 | 54 |
Available for sale, fair value 12 months or longer | 3,745 | 3,217 |
Available for sale, gross unrealized losses 12 months or longer | 75 | 144 |
Available for sale, fair value total | 3,799 | 6,058 |
Available for sale, gross unrealized losses total | 75 | 198 |
Held to maturity, fair value less than 12 months | 705 | 896 |
Held-to-maturity, gross, less than 12 months | 9 | 25 |
Held to maturity, fair value 12 months or longer | 1,235 | 615 |
Held to maturity, gross unrealized losses 12 months or longer | 21 | 22 |
Held to maturity, fair value total | 1,940 | 1,511 |
Held to maturity, gross unrealized losses total | 30 | 47 |
Asset-backed securities, credit cards | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 795 | 838 |
Available for sale, gross unrealized losses less than 12 months | 1 | 7 |
Available for sale, fair value 12 months or longer | 494 | 490 |
Available for sale, gross unrealized losses 12 months or longer | 25 | 30 |
Available for sale, fair value total | 1,289 | 1,328 |
Available for sale, gross unrealized losses total | 26 | 37 |
Held to maturity, fair value less than 12 months | 33 | 636 |
Held-to-maturity, gross, less than 12 months | 0 | 1 |
Held to maturity, fair value 12 months or longer | 0 | 0 |
Held to maturity, gross unrealized losses 12 months or longer | 0 | 0 |
Held to maturity, fair value total | 33 | 636 |
Held to maturity, gross unrealized losses total | 0 | 1 |
Asset-backed securities, sub-prime | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1 | 7 |
Available for sale, gross unrealized losses less than 12 months | 0 | 0 |
Available for sale, fair value 12 months or longer | 252 | 387 |
Available for sale, gross unrealized losses 12 months or longer | 18 | 31 |
Available for sale, fair value total | 253 | 394 |
Available for sale, gross unrealized losses total | 18 | 31 |
Asset-backed securities, other | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 75 | 720 |
Available for sale, gross unrealized losses less than 12 months | 0 | 3 |
Available for sale, fair value 12 months or longer | 0 | 43 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 0 |
Available for sale, fair value total | 75 | 763 |
Available for sale, gross unrealized losses total | 0 | 3 |
Held to maturity, fair value less than 12 months | 18 | 102 |
Held-to-maturity, gross, less than 12 months | 0 | 0 |
Held to maturity, fair value 12 months or longer | 9 | 31 |
Held to maturity, gross unrealized losses 12 months or longer | 0 | 1 |
Held to maturity, fair value total | 27 | 133 |
Held to maturity, gross unrealized losses total | 0 | 1 |
Asset-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 925 | 4,406 |
Available for sale, gross unrealized losses less than 12 months | 1 | 64 |
Available for sale, fair value 12 months or longer | 4,491 | 4,137 |
Available for sale, gross unrealized losses 12 months or longer | 118 | 205 |
Available for sale, fair value total | 5,416 | 8,543 |
Available for sale, gross unrealized losses total | 119 | 269 |
Held to maturity, fair value less than 12 months | 756 | 1,634 |
Held-to-maturity, gross, less than 12 months | 9 | 26 |
Held to maturity, fair value 12 months or longer | 1,244 | 646 |
Held to maturity, gross unrealized losses 12 months or longer | 21 | 23 |
Held to maturity, fair value total | 2,000 | 2,280 |
Held to maturity, gross unrealized losses total | 30 | 49 |
Non-U.S. debt securities, mortgage-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 442 | 1,457 |
Available for sale, gross unrealized losses less than 12 months | 1 | 7 |
Available for sale, fair value 12 months or longer | 893 | 437 |
Available for sale, gross unrealized losses 12 months or longer | 5 | 4 |
Available for sale, fair value total | 1,335 | 1,894 |
Available for sale, gross unrealized losses total | 6 | 11 |
Held to maturity, fair value less than 12 months | 54 | 338 |
Held-to-maturity, gross, less than 12 months | 2 | 2 |
Held to maturity, fair value 12 months or longer | 330 | 524 |
Held to maturity, gross unrealized losses 12 months or longer | 13 | 24 |
Held to maturity, fair value total | 384 | 862 |
Held to maturity, gross unrealized losses total | 15 | 26 |
Non-U.S. debt securities, asset-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 253 | 2,190 |
Available for sale, gross unrealized losses less than 12 months | 0 | 7 |
Available for sale, fair value 12 months or longer | 276 | 22 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 0 |
Available for sale, fair value total | 529 | 2,212 |
Available for sale, gross unrealized losses total | 1 | 7 |
Held to maturity, fair value less than 12 months | 28 | 1,015 |
Held-to-maturity, gross, less than 12 months | 0 | 3 |
Held to maturity, fair value 12 months or longer | 35 | 69 |
Held to maturity, gross unrealized losses 12 months or longer | 0 | 0 |
Held to maturity, fair value total | 63 | 1,084 |
Held to maturity, gross unrealized losses total | 0 | 3 |
Government securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,314 | 1,691 |
Available for sale, gross unrealized losses less than 12 months | 6 | 0 |
Available for sale, fair value 12 months or longer | 0 | 0 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 0 |
Available for sale, fair value total | 1,314 | 1,691 |
Available for sale, gross unrealized losses total | 6 | 0 |
Held to maturity, fair value less than 12 months | 180 | 128 |
Held-to-maturity, gross, less than 12 months | 0 | 1 |
Held to maturity, fair value 12 months or longer | 0 | 0 |
Held to maturity, gross unrealized losses 12 months or longer | 0 | 0 |
Held to maturity, fair value total | 180 | 128 |
Held to maturity, gross unrealized losses total | 0 | 1 |
Non-U.S. debt securities, other | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 670 | 1,548 |
Available for sale, gross unrealized losses less than 12 months | 4 | 5 |
Available for sale, fair value 12 months or longer | 218 | 527 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 7 |
Available for sale, fair value total | 888 | 2,075 |
Available for sale, gross unrealized losses total | 5 | 12 |
Held to maturity, fair value less than 12 months | 0 | |
Held-to-maturity, gross, less than 12 months | 0 | |
Held to maturity, fair value 12 months or longer | 43 | |
Held to maturity, gross unrealized losses 12 months or longer | 0 | |
Held to maturity, fair value total | 43 | |
Held to maturity, gross unrealized losses total | 0 | |
Total non-U.S. debt securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 2,679 | 6,886 |
Available for sale, gross unrealized losses less than 12 months | 11 | 19 |
Available for sale, fair value 12 months or longer | 1,387 | 986 |
Available for sale, gross unrealized losses 12 months or longer | 7 | 11 |
Available for sale, fair value total | 4,066 | 7,872 |
Available for sale, gross unrealized losses total | 18 | 30 |
Held to maturity, fair value less than 12 months | 262 | 1,481 |
Held-to-maturity, gross, less than 12 months | 2 | 6 |
Held to maturity, fair value 12 months or longer | 365 | 636 |
Held to maturity, gross unrealized losses 12 months or longer | 13 | 24 |
Held to maturity, fair value total | 627 | 2,117 |
Held to maturity, gross unrealized losses total | 15 | 30 |
State and political subdivisions | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 3,390 | 206 |
Available for sale, gross unrealized losses less than 12 months | 102 | 1 |
Available for sale, fair value 12 months or longer | 304 | 658 |
Available for sale, gross unrealized losses 12 months or longer | 10 | 26 |
Available for sale, fair value total | 3,694 | 864 |
Available for sale, gross unrealized losses total | 112 | 27 |
Collateralized mortgage obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,259 | 1,511 |
Available for sale, gross unrealized losses less than 12 months | 31 | 14 |
Available for sale, fair value 12 months or longer | 162 | 217 |
Available for sale, gross unrealized losses 12 months or longer | 4 | 8 |
Available for sale, fair value total | 1,421 | 1,728 |
Available for sale, gross unrealized losses total | 35 | 22 |
Held to maturity, fair value less than 12 months | 537 | 634 |
Held-to-maturity, gross, less than 12 months | 4 | 9 |
Held to maturity, fair value 12 months or longer | 204 | 537 |
Held to maturity, gross unrealized losses 12 months or longer | 7 | 20 |
Held to maturity, fair value total | 741 | 1,171 |
Held to maturity, gross unrealized losses total | 11 | 29 |
Other U.S. debt securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 944 | 475 |
Available for sale, gross unrealized losses less than 12 months | 24 | 9 |
Available for sale, fair value 12 months or longer | 157 | 178 |
Available for sale, gross unrealized losses 12 months or longer | 6 | 9 |
Available for sale, fair value total | 1,101 | 653 |
Available for sale, gross unrealized losses total | 30 | 18 |
U.S. equity securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 8 | 0 |
Available for sale, gross unrealized losses less than 12 months | 0 | 0 |
Available for sale, fair value 12 months or longer | 5 | 5 |
Available for sale, gross unrealized losses 12 months or longer | 3 | 3 |
Available for sale, fair value total | 13 | 5 |
Available for sale, gross unrealized losses total | $ 3 | $ 3 |
Investment Securities - Sched69
Investment Securities - Schedule of Contractual Maturities of Debt Securities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | $ 12,415 | |
Available for sale, 1 to 5 Years | 19,803 | |
Available for sale, 6 to 10 Years | 14,306 | |
Available for sale, over 10 Years | 15,004 | |
Available-for-sale, fair value | 61,528 | |
Held to maturity, under 1 Year | 1,612 | |
Held to maturity, 1 to 5 Years | 16,976 | |
Held to maturity, 6 to 10 Years | 4,595 | |
Held to maturity, over 10 Years | 11,986 | |
Held to maturity, amortized cost | 35,169 | $ 29,952 |
US Treasury and federal agencies, direct obligations | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 2,722 | |
Available for sale, 1 to 5 Years | 1,114 | |
Available for sale, 6 to 10 Years | 44 | |
Available for sale, over 10 Years | 383 | |
Available-for-sale, fair value | 4,263 | |
Held to maturity, under 1 Year | 400 | |
Held to maturity, 1 to 5 Years | 14,888 | |
Held to maturity, 6 to 10 Years | 2,167 | |
Held to maturity, over 10 Years | 72 | |
Held to maturity, amortized cost | 17,527 | 20,878 |
US Treasury and federal agencies, mortgage-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 213 | |
Available for sale, 1 to 5 Years | 1,533 | |
Available for sale, 6 to 10 Years | 3,022 | |
Available for sale, over 10 Years | 8,489 | |
Available-for-sale, fair value | 13,257 | |
Held to maturity, under 1 Year | 0 | |
Held to maturity, 1 to 5 Years | 193 | |
Held to maturity, 6 to 10 Years | 1,536 | |
Held to maturity, over 10 Years | 8,605 | |
Held to maturity, amortized cost | 10,334 | 610 |
Asset-backed securities, student loans | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 590 | |
Available for sale, 1 to 5 Years | 3,181 | |
Available for sale, 6 to 10 Years | 757 | |
Available for sale, over 10 Years | 1,068 | |
Available-for-sale, fair value | 5,596 | |
Held to maturity, under 1 Year | 442 | |
Held to maturity, 1 to 5 Years | 201 | |
Held to maturity, 6 to 10 Years | 349 | |
Held to maturity, over 10 Years | 1,891 | |
Held to maturity, amortized cost | 2,883 | 1,592 |
Asset-backed securities, credit cards | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 4 | |
Available for sale, 1 to 5 Years | 1,052 | |
Available for sale, 6 to 10 Years | 295 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 1,351 | |
Held to maturity, under 1 Year | 99 | |
Held to maturity, 1 to 5 Years | 798 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 897 | 897 |
Asset-backed securities, sub-prime | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 3 | |
Available for sale, 1 to 5 Years | 1 | |
Available for sale, 6 to 10 Years | 2 | |
Available for sale, over 10 Years | 266 | |
Available-for-sale, fair value | 272 | |
Asset-backed securities, other | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 1 | |
Available for sale, 1 to 5 Years | 21 | |
Available for sale, 6 to 10 Years | 883 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 905 | |
Held to maturity, under 1 Year | 7 | |
Held to maturity, 1 to 5 Years | 18 | |
Held to maturity, 6 to 10 Years | 8 | |
Held to maturity, over 10 Years | 2 | |
Held to maturity, amortized cost | 35 | 366 |
Total asset-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 598 | |
Available for sale, 1 to 5 Years | 4,255 | |
Available for sale, 6 to 10 Years | 1,937 | |
Available for sale, over 10 Years | 1,334 | |
Available-for-sale, fair value | 8,124 | |
Held to maturity, under 1 Year | 548 | |
Held to maturity, 1 to 5 Years | 1,017 | |
Held to maturity, 6 to 10 Years | 357 | |
Held to maturity, over 10 Years | 1,893 | |
Held to maturity, amortized cost | 3,815 | 2,855 |
Non-U.S. debt securities, mortgage-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 1,301 | |
Available for sale, 1 to 5 Years | 3,339 | |
Available for sale, 6 to 10 Years | 731 | |
Available for sale, over 10 Years | 1,164 | |
Available-for-sale, fair value | 6,535 | |
Held to maturity, under 1 Year | 148 | |
Held to maturity, 1 to 5 Years | 339 | |
Held to maturity, 6 to 10 Years | 47 | |
Held to maturity, over 10 Years | 616 | |
Held to maturity, amortized cost | 1,150 | 2,202 |
Non-U.S. debt securities, asset-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 289 | |
Available for sale, 1 to 5 Years | 1,877 | |
Available for sale, 6 to 10 Years | 346 | |
Available for sale, over 10 Years | 4 | |
Available-for-sale, fair value | 2,516 | |
Held to maturity, under 1 Year | 163 | |
Held to maturity, 1 to 5 Years | 368 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 531 | 1,415 |
Government securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 4,372 | |
Available for sale, 1 to 5 Years | 987 | |
Available for sale, 6 to 10 Years | 477 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 5,836 | |
Held to maturity, under 1 Year | 180 | |
Held to maturity, 1 to 5 Years | 106 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 286 | 239 |
Non-U.S. debt securities, other | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 1,901 | |
Available for sale, 1 to 5 Years | 3,304 | |
Available for sale, 6 to 10 Years | 408 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 5,613 | |
Held to maturity, under 1 Year | 71 | |
Held to maturity, 1 to 5 Years | 42 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 113 | 65 |
Total non-U.S. debt securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 7,863 | |
Available for sale, 1 to 5 Years | 9,507 | |
Available for sale, 6 to 10 Years | 1,962 | |
Available for sale, over 10 Years | 1,168 | |
Available-for-sale, fair value | 20,500 | |
Held to maturity, under 1 Year | 562 | |
Held to maturity, 1 to 5 Years | 855 | |
Held to maturity, 6 to 10 Years | 47 | |
Held to maturity, over 10 Years | 616 | |
Held to maturity, amortized cost | 2,080 | 3,921 |
State and political subdivisions | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 509 | |
Available for sale, 1 to 5 Years | 2,347 | |
Available for sale, 6 to 10 Years | 5,548 | |
Available for sale, over 10 Years | 1,918 | |
Available-for-sale, fair value | 10,322 | |
Held to maturity, amortized cost | 0 | 1 |
Collateralized mortgage obligations | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 2 | |
Available for sale, 1 to 5 Years | 44 | |
Available for sale, 6 to 10 Years | 871 | |
Available for sale, over 10 Years | 1,676 | |
Available-for-sale, fair value | 2,593 | |
Held to maturity, under 1 Year | 102 | |
Held to maturity, 1 to 5 Years | 23 | |
Held to maturity, 6 to 10 Years | 488 | |
Held to maturity, over 10 Years | 800 | |
Held to maturity, amortized cost | 1,413 | $ 1,687 |
Other U.S. debt securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 508 | |
Available for sale, 1 to 5 Years | 1,003 | |
Available for sale, 6 to 10 Years | 922 | |
Available for sale, over 10 Years | 36 | |
Available-for-sale, fair value | $ 2,469 |
Investment Securities - Gains a
Investment Securities - Gains and Losses Related to Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains from sales of AFS investment securities | $ 15 | $ 57 | $ 64 |
Gross realized losses from sales of AFS investment securities | (5) | (62) | (49) |
Gross losses from OTTI | (2) | (1) | (1) |
Losses reclassified (from) to other comprehensive income | (1) | 0 | (10) |
Gains (losses) related to investment securities, net | 7 | (6) | 4 |
Impairment associated with expected credit losses | (1) | 0 | (10) |
Impairment associated with adverse changes in timing of expected future cash flows | (2) | (1) | (1) |
Net impairment losses | $ (3) | $ (1) | $ (11) |
Investment Securities - Sched71
Investment Securities - Schedule of Credit-Related Loss Activity Recognized In Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Balance, beginning of period | $ 92 | $ 115 | $ 122 |
Losses for which OTTI was previously recognized | 2 | 1 | 11 |
Previously recognized losses related to securities sold or matured | (28) | (24) | (12) |
Losses related to securities intended or required to be sold | 0 | 0 | (6) |
Balance, end of period | $ 66 | $ 92 | $ 115 |
Loans and Leases - Narrative (D
Loans and Leases - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases, allowance for losses | $ 53,000 | $ 46,000 | |
Loans and leases pledged as collateral | $ 1,500,000 | $ 2,500,000 | |
Loans modified in troubled debt restructurings | loan | 0 | 0 | |
Provision for loan losses | $ 10,000 | $ 12,000 | $ 10,000 |
Charge-offs | (3,000) | $ (4,000) | $ 0 |
Commercial and Financial | Senior Secured Bank Loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases, allowance for losses | $ 195 | ||
Total Institutional | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans more than 90 days past due | loan | 1 | ||
Total CRE | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans more than 90 days past due | loan | 0 |
Loans and Leases - Net Loans (D
Loans and Leases - Net Loans (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 19,757 | $ 18,799 |
Allowance for loan and lease losses | (53) | (46) |
Loans and leases, net of allowance | 19,704 | 18,753 |
Domestic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans to investment funds | 11,734 | 11,915 |
Senior secured bank loans | 3,256 | 2,929 |
Loans to municipalities | 1,352 | 962 |
Other | 70 | 93 |
Commercial real estate | 27 | 28 |
Lease financing | 338 | 337 |
Total loans and leases | 16,777 | 16,264 |
Foreign | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans to investment funds | 2,224 | 1,752 |
Senior secured bank loans | 252 | 205 |
Lease financing | 504 | 578 |
Total loans and leases | $ 2,980 | $ 2,535 |
Loans and Leases - Schedule of
Loans and Leases - Schedule of Investment in Leveraged Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Abstract] | ||
Net rental income receivable | $ 1,039 | $ 1,159 |
Estimated residual values | 89 | 89 |
Unearned income | (286) | (333) |
Investment in leveraged lease financing | 842 | 915 |
Less: related deferred income tax liabilities | (313) | (334) |
Net investment in leveraged lease financing | $ 529 | $ 581 |
Loans and Leases - Recorded Inv
Loans and Leases - Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 19,757 | $ 18,799 |
Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 18,888 | 17,856 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 27 | 28 |
Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 842 | 915 |
Investment grade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 15,758 | 15,204 |
Investment grade | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 14,889 | 14,288 |
Investment grade | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 27 | 28 |
Investment grade | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 842 | 888 |
Speculative | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 3,984 | 3,564 |
Speculative | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 3,984 | 3,537 |
Speculative | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 0 |
Speculative | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 27 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 31 | |
Special Mention | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 31 | |
Special Mention | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | |
Special Mention | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 0 | |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 15 | |
Substandard | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 15 | |
Substandard | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | |
Substandard | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 0 |
Loans and Leases - Schedule o76
Loans and Leases - Schedule of Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 19,757,000 | $ 18,799,000 |
Loans and leases, allowance for losses | 53,000 | 46,000 |
Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 18,888,000 | 17,856,000 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 27,000 | 28,000 |
Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 842,000 | 915,000 |
Individually evaluated for impairment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 15,000 | 0 |
Individually evaluated for impairment | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 15,000 | 0 |
Individually evaluated for impairment | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 0 |
Individually evaluated for impairment | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 0 |
Collectively evaluated for impairment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 19,742,000 | 18,799,000 |
Collectively evaluated for impairment | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 18,873,000 | 17,856,000 |
Collectively evaluated for impairment | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 27,000 | 28,000 |
Collectively evaluated for impairment | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 842,000 | $ 915,000 |
Senior Secured Bank Loans | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases, allowance for losses | $ 195 |
Loans and Leases - Impaired Loa
Loans and Leases - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 15,000 | |
Unpaid Principal Balance | 15,000 | |
Related Allowance | 0 | |
Average Recorded Investment | 15,000 | |
Interest Revenue Recognized | 0 | |
Loans and leases, allowance for losses | 53,000 | $ 46,000 |
Commercial and Financial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 15,000 | |
Unpaid Principal Balance | 15,000 | |
Related Allowance | 0 | |
Average Recorded Investment | 15,000 | |
Interest Revenue Recognized | 0 | |
Senior Secured Bank Loans | Commercial and Financial | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and leases, allowance for losses | $ 195 |
Loans and Leases - Schedule o78
Loans and Leases - Schedule of Activity In The Allowance For Loan Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 46 | $ 38 | $ 28 |
Provision for loan and lease losses | 10 | 12 | 10 |
Charge-offs | (3) | (4) | 0 |
Ending balance | $ 53 | $ 46 | $ 38 |
Goodwill and Other Intangible79
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 5,671 | $ 5,826 |
Acquisitions | 236 | 0 |
Divestitures and other reductions | (11) | 0 |
Foreign currency translation | (82) | (155) |
Ending balance | 5,814 | 5,671 |
Investment Servicing | ||
Goodwill [Roll Forward] | ||
Beginning balance | 5,641 | 5,793 |
Acquisitions | 0 | 0 |
Divestitures and other reductions | (11) | 0 |
Foreign currency translation | (80) | (152) |
Ending balance | 5,550 | 5,641 |
Investment Management | ||
Goodwill [Roll Forward] | ||
Beginning balance | 30 | 33 |
Acquisitions | 236 | 0 |
Divestitures and other reductions | 0 | 0 |
Foreign currency translation | (2) | (3) |
Ending balance | $ 264 | $ 30 |
Goodwill and Other Intangible80
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | $ 1,768 | $ 2,025 | |
Acquisitions | 217 | 16 | |
Divestitures | (8) | 0 | |
Amortization | (207) | (197) | $ (222) |
Foreign currency translation and other, net | (20) | (76) | |
Ending balance | 1,750 | 1,768 | 2,025 |
Investment Servicing | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 1,753 | 1,998 | |
Acquisitions | 0 | 16 | |
Divestitures | (8) | 0 | |
Amortization | (186) | (187) | |
Foreign currency translation and other, net | (20) | (74) | |
Ending balance | 1,539 | 1,753 | 1,998 |
Investment Management | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 15 | 27 | |
Acquisitions | 217 | 0 | |
Divestitures | 0 | 0 | |
Amortization | (21) | (10) | |
Foreign currency translation and other, net | 0 | (2) | |
Ending balance | $ 211 | $ 15 | $ 27 |
Goodwill and Other Intangible81
Goodwill and Other Intangible Assets - Gross Carrying Amount, Accumulated Amortization And Net Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 3,413 | $ 3,300 | |
Accumulated Amortization | (1,663) | (1,532) | |
Net Carrying Amount | 1,750 | 1,768 | $ 2,025 |
Client relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 2,620 | 2,486 | |
Accumulated Amortization | (1,306) | (1,198) | |
Net Carrying Amount | 1,314 | 1,288 | |
Core deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 661 | 667 | |
Accumulated Amortization | (277) | (246) | |
Net Carrying Amount | 384 | 421 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 132 | 147 | |
Accumulated Amortization | (80) | (88) | |
Net Carrying Amount | $ 52 | $ 59 | |
Minimum | Client relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 5 years | ||
Minimum | Core deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 16 years | ||
Maximum | Client relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 20 years | ||
Maximum | Core deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 22 years |
Goodwill and Other Intangible82
Goodwill and Other Intangible Assets - Amortization of Finite Lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of other intangible assets | $ 207 | $ 197 | $ 222 |
Impairment of intangible assets | $ 9 | ||
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
2,017 | 208 | ||
2,018 | 186 | ||
2,019 | 169 | ||
2,020 | 166 | ||
2,021 | $ 161 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets [Abstract] | ||
Receivable - securities lending | $ 21,204 | $ 20,121 |
Derivative instruments, net | 7,321 | 4,777 |
Bank-owned life insurance | 3,158 | 3,078 |
Investments in joint ventures and other unconsolidated entities | 2,363 | 2,034 |
Collateral, net | 2,236 | 1,344 |
Accounts receivable | 886 | 1,018 |
Prepaid expenses | 333 | 284 |
Deferred tax assets, net of valuation allowance | 210 | 182 |
Deposits with clearing organizations | 132 | 127 |
Income taxes receivable | 106 | 154 |
Receivable for securities settlement | 40 | 311 |
Other | 339 | 473 |
Total | $ 38,328 | $ 33,903 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Domestic deposits of $100,000 or more | $ 55,030 | $ 46,550 |
Non-U.S. | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Domestic deposits of $100,000 or more | $ 214 | $ 127 |
Short-Term Borrowings - Narrati
Short-Term Borrowings - Narrative (Details) | Dec. 31, 2016USD ($) | Dec. 31, 2016CAD | Dec. 31, 2015USD ($) |
Short-term Debt [Line Items] | |||
Weighted-average interest rate as of year-end | 0.13% | 0.13% | 0.05% |
Average balance of securities purchased under agreement to resell and securities sold under agreement to repurchase | $ 30,860,000,000 | $ 30,300,000,000 | |
Maximum borrowing on line of credit | 1,040,000,000 | CAD 1,400,000,000 | |
Balance on line of credit | 0 | $ 0 | |
U.S. Government Securities Sold | |||
Short-term Debt [Line Items] | |||
Fair value of overnight maturity | $ 4,491,000,000 |
Short-Term Borrowings - Outstan
Short-Term Borrowings - Outstanding and weighted-average interest rates of short-term borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Short-term Debt [Line Items] | |||
Weighted-average interest rate as of year-end | 0.13% | 0.05% | |
Securities Sold Under Repurchase Agreements | |||
Short-term Debt [Line Items] | |||
Balance as of December 31 | $ 4,400 | $ 4,499 | $ 8,925 |
Maximum outstanding as of any month-end | 5,572 | 10,977 | 10,955 |
Average outstanding during the year | $ 4,113 | $ 8,875 | $ 8,817 |
Weighted-average interest rate as of year-end | 0.04% | 0.02% | 0.005% |
Weighted-average interest rate for the year | 0.02% | 0.01% | 0.00% |
Federal Funds Purchased | |||
Short-term Debt [Line Items] | |||
Balance as of December 31 | $ 0 | $ 6 | $ 21 |
Maximum outstanding as of any month-end | 29 | 29 | 29 |
Average outstanding during the year | $ 31 | $ 21 | $ 20 |
Weighted-average interest rate as of year-end | 0.00% | 0.03% | 0.01% |
Weighted-average interest rate for the year | 0.17% | 0.01% | 0.00% |
Tax-Exempt Investment Program | |||
Short-term Debt [Line Items] | |||
Balance as of December 31 | $ 1,158 | $ 1,748 | $ 1,870 |
Maximum outstanding as of any month-end | 1,726 | 1,865 | 1,938 |
Average outstanding during the year | $ 1,512 | $ 1,807 | $ 1,903 |
Weighted-average interest rate as of year-end | 0.67% | 0.03% | 0.06% |
Weighted-average interest rate for the year | 0.36% | 0.06% | 0.08% |
Corporate Commercial Paper Program | |||
Short-term Debt [Line Items] | |||
Balance as of December 31 | $ 0 | $ 2,485 | |
Maximum outstanding as of any month-end | 2,919 | 2,485 | |
Average outstanding during the year | $ 1,897 | $ 2,136 | |
Weighted-average interest rate as of year-end | 0.00% | 0.16% | |
Weighted-average interest rate for the year | 0.26% | 0.17% |
Short-Term Borrowings - Overnig
Short-Term Borrowings - Overnight maturity (Details) $ in Millions | Dec. 31, 2016USD ($) |
U.S. Government Securities Sold | |
Short-term Debt [Line Items] | |
Amortized cost of overnight maturity | $ 4,490 |
Fair value of overnight maturity | 4,491 |
Repurchase Agreements | |
Short-term Debt [Line Items] | |
Amortized cost of overnight maturity | $ 4,400 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 11,430 | $ 11,497 |
Fair Value Hedges | ||
Debt Instrument [Line Items] | ||
Increase (decrease) in carrying value of long-term debt | $ (15) | 105 |
Subordinated note | 3.10% subordinated notes due 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.10% | |
Subordinated note | 5.25% subordinated notes due 2018 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 5.25% | |
Subordinated note | 5.30% subordinated notes due 2016 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 5.30% | |
Senior notes | 3.55% notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.55% | |
Senior notes | 2.55% notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.55% | |
Senior notes | 3.70% notes due in 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.70% | |
Senior notes | 3.30% notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.30% | |
Senior notes | 4.375% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 4.375% | |
Senior notes | 1.95% Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 1.95% | |
Senior notes | 2.65% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.65% | |
Senior notes | 1.35% notes due 2018 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 1.35% | |
Senior notes | 5.375% notes due 2017 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 5.375% | |
Senior notes | 7.35% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 7.35% | |
Senior notes | 2.875% notes due 2016 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.875% | |
Junior Subordinated Debt | 4.956% junior subordinated debentures due 2018 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 4.956% | |
Statutory Business Trusts | Subordinated note | Floating-rate subordinated notes due to State Street Capital Trust IV in 2037 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | 793 |
Statutory Business Trusts | Subordinated note | Floating-rate subordinated notes due to State Street Capital Trust I in 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 155 |
Parent Company and Non-banking Subsidiaries | Floating-rate notes due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 499 | 498 |
Parent Company and Non-banking Subsidiaries | Subordinated note | Floating-rate subordinated notes due to State Street Capital Trust IV in 2037 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 793 | 0 |
Parent Company and Non-banking Subsidiaries | Subordinated note | Floating-rate subordinated notes due to State Street Capital Trust I in 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 150 | 0 |
Parent Company and Non-banking Subsidiaries | Subordinated note | 3.10% subordinated notes due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 987 | 993 |
Parent Company and Non-banking Subsidiaries | Senior notes | 3.55% notes due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,293 | 1,301 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.55% notes due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,192 | 1,194 |
Parent Company and Non-banking Subsidiaries | Senior notes | 3.70% notes due in 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,033 | 1,046 |
Parent Company and Non-banking Subsidiaries | Senior notes | 3.30% notes due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 999 | 1,007 |
Parent Company and Non-banking Subsidiaries | Senior notes | 4.375% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 738 | 738 |
Parent Company and Non-banking Subsidiaries | Senior notes | 1.95% Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 726 | 0 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.65% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 704 | 0 |
Parent Company and Non-banking Subsidiaries | Senior notes | 1.35% notes due 2018 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 497 | 495 |
Parent Company and Non-banking Subsidiaries | Senior notes | 5.375% notes due 2017 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 450 | 449 |
Parent Company and Non-banking Subsidiaries | Senior notes | 7.35% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 150 | 150 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.875% notes due 2016 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 1,001 |
Parent Company and Non-banking Subsidiaries | Junior Subordinated Debt | 4.956% junior subordinated debentures due 2018 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 511 | 519 |
Parent Company | ||
Debt Instrument [Line Items] | ||
Long-term debt | 10,727 | 10,326 |
Parent Company | Capital Lease Obligations | ||
Debt Instrument [Line Items] | ||
Long-term capital leases | 293 | 334 |
State Street Bank | Subordinated note | 5.25% subordinated notes due 2018 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 415 | 424 |
State Street Bank | Subordinated note | 5.30% subordinated notes due 2016 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 400 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2016USD ($)trust | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Bank notes authorized | $ 5,000,000,000 | |
Senior debt authorized by BOD | 4,000,000,000 | |
Subordinated debt available for issuance | 500,000,000 | |
Capital lease obligation | 194,000,000 | $ 231,000,000 |
Building and Parking Garage | ||
Debt Instrument [Line Items] | ||
Capital lease obligation | $ 278,000,000 | 308,000,000 |
State Street Capital Trusts I And I V | ||
Debt Instrument [Line Items] | ||
Number of statutory business trusts | trust | 2 | |
Junior subordinated debenture owed to unconsolidated subsidiary trust | $ 955,000,000 | |
Maximum deferral period available on interest payments | 5 years |
Derivative Financial Instrume90
Derivative Financial Instruments - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($) | |
Derivative [Line Items] | ||
Cash collateral received for derivative instruments | $ 1,990 | $ 1,400 |
Cash collateral provided for derivative instruments | 4,390 | 1,650 |
Fair value of derivative liabilities | $ 16,684 | $ 11,153 |
Securities weighted average life | 4 years 6 months | 5 years 5 months 10 days |
Credit swap agreements | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 1,190 | |
Fair value of collateral posted | 92 | |
Maximum additional amount of payments related to termination events | $ 1,100 | |
Interest rate swap | Fair Value Hedges | Senior notes | ||
Derivative [Line Items] | ||
Number of securities | security | 8 | |
Interest rate swap | Fair Value Hedges | Subordinated note | ||
Derivative [Line Items] | ||
Number of securities | security | 2 |
Derivative Financial Instrume91
Derivative Financial Instruments - Schedule of Interest Rate Derivatives (Details) - Interest rate swap - Fair Value Hedges | Dec. 31, 2016 |
Senior notes | 1.35% notes due 2018 | |
Derivative [Line Items] | |
Fixed interest rate | 1.35% |
Senior notes | 2.55% notes due 2020 | |
Derivative [Line Items] | |
Fixed interest rate | 2.55% |
Senior notes | 1.95% Notes Due 2021 | |
Derivative [Line Items] | |
Fixed interest rate | 1.95% |
Senior notes | 4.38% note due 2021 | |
Derivative [Line Items] | |
Fixed interest rate | 4.38% |
Senior notes | 3.70% notes due in 2023 | |
Derivative [Line Items] | |
Fixed interest rate | 3.70% |
Senior notes | 3.30% notes due 2024 | |
Derivative [Line Items] | |
Fixed interest rate | 3.30% |
Senior notes | 3.55% notes due 2025 | |
Derivative [Line Items] | |
Fixed interest rate | 3.55% |
Senior notes | 2.65% notes due 2026 | |
Derivative [Line Items] | |
Fixed interest rate | 2.65% |
Subordinated note | 4.96% subordinated note due 2018 | |
Derivative [Line Items] | |
Fixed interest rate | 4.96% |
Subordinated note | 3.10% subordinated note due 2023 | |
Derivative [Line Items] | |
Fixed interest rate | 3.10% |
Derivative Financial Instrume92
Derivative Financial Instruments - Schedule of Outstanding Hedges: (Notional Amount) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Additional compensation and employee benefits expense due to accelerated vesting | $ 249 | |
Derivatives not designated as hedging instruments | Interest-rate contracts | Swap agreements and forwards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 0 | $ 336 |
Derivatives not designated as hedging instruments | Interest-rate contracts | Futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 13,455 | 2,621 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Forward, swap and spot | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 1,414,765 | 1,274,277 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 337 | 403 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options written | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 202 | 404 |
Derivatives not designated as hedging instruments | Credit derivative contracts | Credit swap agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 0 | 141 |
Derivatives not designated as hedging instruments | Commodity and Equity Contracts | Commodity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 0 | 113 |
Derivatives not designated as hedging instruments | Commodity and Equity Contracts | Equity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 0 | 87 |
Derivatives not designated as hedging instruments | Other contracts | Stable value contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 27,182 | 24,583 |
Derivatives not designated as hedging instruments | Other contracts | Deferred value awards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 409 | 320 |
Derivatives designated as hedging instruments | Interest-rate contracts | Swap agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | 10,169 | 9,398 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Forward and swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivatives | $ 8,564 | $ 4,515 |
Derivative Financial Instrume93
Derivative Financial Instruments - Notional Amount of Interest Rate Swap Agreements Designated as Fair Value and Cash Flow Hedges (Details) - Fair Value Hedges - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Total | $ 10,169 | $ 9,398 |
Increase in carrying value of long-term debt | (15) | 105 |
Investment securities available for sale | ||
Derivative [Line Items] | ||
Investment securities available-for-sale | 1,444 | 1,698 |
Long-term debt | ||
Derivative [Line Items] | ||
Long-term debt | $ 8,725 | $ 7,700 |
Derivative Financial Instrume94
Derivative Financial Instruments - Contractual and Weighted-Average Interest Rates, Which Include the Effects of Hedges Related to Financial Instruments (Details) - Long-term debt | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Contractual rates | 3.40% | 3.57% |
Rate including impact of hedges | 2.29% | 2.42% |
Derivative Financial Instrume95
Derivative Financial Instruments - Schedule of The Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 16,552 | $ 11,456 |
Fair value of derivative liabilities | 16,684 | 11,153 |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 16,484 | 11,316 |
Fair value of derivative liabilities | 15,956 | 10,868 |
Interest-rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 68 | 135 |
Fair value of derivative liabilities | 348 | 182 |
Derivatives not designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 15,982 | 10,806 |
Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 16,261 | 10,900 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 15,982 | 10,799 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 15,881 | 10,795 |
Derivatives not designated as hedging instruments | Interest-rate contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 2 |
Derivatives not designated as hedging instruments | Interest-rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 0 | 2 |
Derivatives not designated as hedging instruments | Other derivative contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 5 |
Derivatives not designated as hedging instruments | Other derivative contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 380 | 103 |
Derivatives designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 570 | 650 |
Derivatives designated as hedging instruments | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 423 | 253 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 502 | 517 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 75 | 73 |
Derivatives designated as hedging instruments | Interest-rate contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 68 | 133 |
Derivatives designated as hedging instruments | Interest-rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 348 | $ 180 |
Derivative Financial Instrume96
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Additional compensation and employee benefits expense due to accelerated vesting | $ 249 | ||
Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | 205 | $ 542 | $ 505 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Trading services | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | 662 | 686 | 612 |
Derivatives not designated as hedging instruments | Interest-rate contracts | Trading services | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | (7) | (2) | 1 |
Derivatives not designated as hedging instruments | Interest-rate contracts | Processing fees and other revenue | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | 1 | 0 | 0 |
Derivatives not designated as hedging instruments | Credit derivative contracts | Trading services | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | (1) | (1) | 1 |
Derivatives not designated as hedging instruments | Credit derivative contracts | Processing fees and other revenue | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | (1) |
Derivatives not designated as hedging instruments | Other derivative contracts | Trading services | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | (2) | 8 | (2) |
Derivatives not designated as hedging instruments | Other derivative contracts | Compensation and employee benefits | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | $ (448) | $ (149) | $ (106) |
Derivative Financial Instrume97
Derivative Financial Instruments - Schedule of Differences Between the Gains (Losses) on the Derivative and The Gains (Losses) on the Hedged Item (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Net unrealized loss on available-for-sale securities designated in fair value hedges, net of related taxes | $ 23,000,000 | $ 12,000,000 | $ (24,000,000) |
Derivatives designated as hedging instruments | Fair Value Hedges | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | 160,000,000 | (265,000,000) | 14,000,000 |
Gain (loss) on fair value hedges recognized in earnings | (155,000,000) | 271,000,000 | (7,000,000) |
Derivatives designated as hedging instruments | Fair Value Hedges | Investment securities available for sale | Foreign exchange contracts | Processing fees and other revenue | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | (6,000,000) | (101,000,000) | (92,000,000) |
Gain (loss) on fair value hedges recognized in earnings | 6,000,000 | 101,000,000 | 92,000,000 |
Derivatives designated as hedging instruments | Fair Value Hedges | Investment securities available for sale | Interest-rate contracts | Processing fees and other revenue | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | 43,000,000 | 16,000,000 | (44,000,000) |
Gain (loss) on fair value hedges recognized in earnings | (40,000,000) | (17,000,000) | 39,000,000 |
Derivatives designated as hedging instruments | Fair Value Hedges | Deposits | Foreign exchange contracts | Processing fees and other revenue | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | 221,000,000 | (241,000,000) | 0 |
Gain (loss) on fair value hedges recognized in earnings | (221,000,000) | 241,000,000 | 0 |
Derivatives designated as hedging instruments | Fair Value Hedges | Long-term debt | Interest-rate contracts | Processing fees and other revenue | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | (98,000,000) | 61,000,000 | 150,000,000 |
Gain (loss) on fair value hedges recognized in earnings | 100,000,000 | (54,000,000) | (138,000,000) |
Derivatives designated as hedging instruments | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | 24,000,000 | 10,000,000 | 9,000,000 |
Gain (loss) on derivative recognized in OCI | (39,000,000) | 55,000,000 | 124,000,000 |
Gain (loss) on hedges reclassified to income | 0 | (4,000,000) | (4,000,000) |
Derivatives designated as hedging instruments | Cash Flow Hedges | Foreign exchange contracts | |||
Derivative [Line Items] | |||
Gain (loss) on derivative recognized in OCI | (39,000,000) | 55,000,000 | 126,000,000 |
Derivatives designated as hedging instruments | Cash Flow Hedges | Foreign exchange contracts | Net interest revenue | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | 24,000,000 | 10,000,000 | 6,000,000 |
Gain (loss) on hedges reclassified to income | 0 | 0 | 0 |
Derivatives designated as hedging instruments | Cash Flow Hedges | Interest-rate contracts | |||
Derivative [Line Items] | |||
Gain (loss) on derivative recognized in OCI | 0 | 0 | (2,000,000) |
Derivatives designated as hedging instruments | Cash Flow Hedges | Interest-rate contracts | Net interest revenue | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | 3,000,000 |
Gain (loss) on hedges reclassified to income | 0 | (4,000,000) | (4,000,000) |
Derivatives designated as hedging instruments | Investment Hedges | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | 0 |
Gain (loss) on derivative recognized in OCI | 109,000,000 | 0 | 0 |
Gain (loss) on hedges reclassified to income | 0 | 0 | 0 |
Derivatives designated as hedging instruments | Investment Hedges | Foreign exchange contracts | |||
Derivative [Line Items] | |||
Gain (loss) on derivative recognized in OCI | 109,000,000 | 0 | 0 |
Derivatives designated as hedging instruments | Investment Hedges | Foreign exchange contracts | Gains (Losses) related to investment securities, net | |||
Derivative [Line Items] | |||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | 0 |
Gain (loss) on hedges reclassified to income | $ 0 | $ 0 | $ 0 |
Offsetting Arrangements - Narra
Offsetting Arrangements - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting [Abstract] | ||
Fair Value of securities received as collateral that can be resold or repledged | $ 1,770 | $ 3,050 |
Fair Value of securities received as collateral that have been resold or repledged | $ 166 | $ 262 |
Offsetting Arrangements - Asset
Offsetting Arrangements - Assets With Offsetting Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | $ 16,552 | $ 11,456 |
Derivatives, Gross Amounts Offset in Statement of Condition | (9,231) | (6,679) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 7,321 | 4,777 |
Derivatives, Net Amount | 7,074 | 4,372 |
Derivatives, Cash collateral and securities netting, offset | 906 | 776 |
Derivatives, Cash collateral and securities netting, Cash and Securities Received | (247) | (405) |
Derivatives, Cash collateral and securities netting, Net | (1,153) | (1,181) |
Resale agreements and securities borrowing, Gross Amounts of Recognized Assets | 58,677 | 62,522 |
Resale agreements and securities borrowing, Gross Amounts Offset in Statement of Condition | (35,517) | (38,997) |
Resale agreements and securities borrowing, Net Amounts of Assets Presented in Statement of Condition | 23,160 | 23,525 |
Resale agreements and securities borrowing, Cash and Securities Received | (22,939) | (22,875) |
Resale agreements and securities borrowing, Net Amount | 221 | 650 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Assets | 75,229 | 73,978 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | 44,748 | 45,676 |
Total derivatives and other financial instruments, Net Amounts of Assets Presented in Statement of Condition | 30,481 | 28,302 |
Total derivatives and other financial instruments, Cash and Securities Received(5) | (23,186) | (23,280) |
Total derivatives and other financial instruments, Net Amount | 7,295 | 5,022 |
Securities purchased under resale agreements | 1,956 | 3,404 |
Securities borrowed subject to master netting arrangements | 21,204 | 20,121 |
Foreign exchange contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 16,484 | 11,316 |
Derivatives, Gross Amounts Offset in Statement of Condition | (8,257) | (5,896) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 8,227 | 5,420 |
Derivatives, Net Amount | 8,227 | 5,420 |
Interest-rate contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 68 | 135 |
Derivatives, Gross Amounts Offset in Statement of Condition | (68) | (5) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 0 | 130 |
Derivatives, Net Amount | $ 0 | 130 |
Other derivative contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 5 | |
Derivatives, Gross Amounts Offset in Statement of Condition | (2) | |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 3 | |
Derivatives, Net Amount | $ 3 |
Offsetting Arrangements - Liabi
Offsetting Arrangements - Liabilities With Offsetting Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | $ 16,684 | $ 11,153 |
Derivatives, Gross amounts offset in statement of condition | (10,682) | (7,021) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 6,002 | 4,132 |
Derivative, Net Amount | 5,822 | 4,068 |
Derivatives, Cash and collateral securities netting, offset | 2,356 | 1,118 |
Derivatives, Cash and collateral securities netting, Cash and Securities Provided | 180 | 64 |
Derivatives, Cash and collateral securities netting, Net | (2,536) | (1,182) |
Resale agreements and securities lending, Gross Amounts of Recognized Liabilities(1)(2) | 44,933 | 46,766 |
Resale agreements and securities lending, Gross Amounts Offset in Statement of Condition(3) | (35,517) | (38,997) |
Resale agreements and securities lending, Net Amounts of Liabilities Presented in Statement of Condition | 9,416 | 7,769 |
Resale agreements and securities lending, Cash and Securities Provided | (7,059) | (5,350) |
Resale agreements and securities lending, Net Amount | 2,357 | 2,419 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Liabilities | 61,617 | 57,919 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (46,199) | (46,018) |
Total derivatives and other financial instruments, Net Amounts of Liabilities Presented in Statement of Condition | 15,418 | 11,901 |
Total derivatives and other financial instruments, Cash and Securities Provided | (7,239) | (5,414) |
Total derivatives and other financial instruments, Net Amount | 8,179 | 6,487 |
Securities sold under repurchase agreements | 4,400 | 4,499 |
Securities lending, fair value, amount not offset against collateral | 5,016 | 3,270 |
Foreign exchange contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 15,956 | 10,868 |
Derivatives, Gross amounts offset in statement of condition | (8,253) | (5,896) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 7,703 | 4,972 |
Derivative, Net Amount | 7,703 | 4,972 |
Interest-rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 348 | 182 |
Derivatives, Gross amounts offset in statement of condition | (73) | (5) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 275 | 177 |
Derivative, Net Amount | 275 | 177 |
Other derivative contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 380 | 103 |
Derivatives, Gross amounts offset in statement of condition | 0 | (2) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 380 | 101 |
Derivative, Net Amount | $ 380 | $ 101 |
Offsetting Arrangements - Repo,
Offsetting Arrangements - Repo, Sec Lending Transactions Maturity By Category (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | $ 35,509 | $ 37,259 |
Securities lending transactions | 9,424 | 9,507 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 44,933 | 46,766 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 35,509 | 37,157 |
Securities lending transactions | 8,390 | 8,505 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 43,899 | 45,662 |
Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 102 |
Securities lending transactions | 0 | 0 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 0 | 102 |
30 – 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending transactions | 1,034 | 1,002 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 1,034 | 1,002 |
U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 35,509 | 37,162 |
U.S. Treasury and agency securities | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 35,509 | 37,157 |
U.S. Treasury and agency securities | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 5 |
U.S. Treasury and agency securities | 30 – 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 53 | 1 |
Corporate debt securities | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 53 | 1 |
Corporate debt securities | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 0 | 0 |
Corporate debt securities | 30 – 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 0 | 0 |
Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 9,371 | 9,504 |
Equity securities | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 8,337 | 8,502 |
Equity securities | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 0 | 0 |
Equity securities | 30 – 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | $ 1,034 | 1,002 |
Non-U.S. sovereign debt | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 97 | |
Securities lending transactions | 2 | |
Non-U.S. sovereign debt | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | |
Securities lending transactions | 2 | |
Non-U.S. sovereign debt | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 97 | |
Securities lending transactions | 0 | |
Non-U.S. sovereign debt | 30 – 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | |
Securities lending transactions | $ 0 |
Commitments and Guarantees - Na
Commitments and Guarantees - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||
Unfunded commitments to extend credit, short term | 73.00% | |
Term of unfunded commitment | 1 year | |
Cash collateral provided for securities lending | $ 21,200 | $ 20,120 |
Accrued expenses and other liabilities | ||
Loss Contingencies [Line Items] | ||
Cash collateral received in connection to securities finance activities | $ 5,020 | $ 3,270 |
Commitments and Guarantees - Co
Commitments and Guarantees - Contractual Amounts of Credit-Related Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded commitments to extend credit | $ 28,154 | $ 26,570 |
Indemnified securities financing | 360,452 | 320,436 |
Stable value protection | 27,182 | 24,583 |
Standby letters of credit | $ 3,459 | $ 4,700 |
Commitments and Guarantees - Sc
Commitments and Guarantees - Schedule Of Repurchase Agreements (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Fair value of indemnified securities financing | $ 360,452 | $ 320,436 |
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing | 377,919 | 335,420 |
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements | 60,003 | 63,055 |
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements | $ 63,959 | $ 67,016 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) £ in Millions, $ in Millions | Jan. 18, 2017USD ($) | Jan. 31, 2014USD ($) | Jan. 31, 2014GBP (£) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Loss Contingencies [Line Items] | ||||||
Legal reserves | $ 90 | |||||
Unrecognized tax benefits | 71 | $ 63 | $ 163 | |||
GovEx Inquiry | ||||||
Loss Contingencies [Line Items] | ||||||
Litigation reserve | 3 | |||||
Legal Reserve | Invoicing Matter | ||||||
Loss Contingencies [Line Items] | ||||||
Estimate of possible loss | 340 | |||||
Regulatory Matter | Transition Management | ||||||
Loss Contingencies [Line Items] | ||||||
Legal reserves | 65 | |||||
Loss accruals | $ 23 | |||||
U.K. FCA | Regulatory Matter | Transition Management | ||||||
Loss Contingencies [Line Items] | ||||||
Settlement, amount | $ (37.8) | £ (22.9) | ||||
Subsequent Event | Department of Justice | Regulatory Matter | Transition Management | ||||||
Loss Contingencies [Line Items] | ||||||
Settlement, amount | $ (32.3) | |||||
Subsequent Event | SEC | Regulatory Matter | Transition Management | ||||||
Loss Contingencies [Line Items] | ||||||
Settlement, amount | $ (32.3) |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Investment securities related to state and political subdivisions | $ 2,100,000,000 | $ 1,350,000,000 |
Variable interest entity, other short-term borrowings | $ 1,750,000,000 | 1,160,000,000 |
Weighted average life of trusts | 5 years 5 months 10 days | |
Total standby bond-purchase agreement committed to trusts | 1,160,000,000 | |
Total letters of credit committed to trusts | 351,000,000 | |
Standby purchase agreements and letters of credit commitments utilized | 0 | |
VIE - primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 321,000,000 | 0 |
Liabilities | 228,000,000 | 0 |
VIE - not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Potential maximum loss exposure of unconsolidated funds | $ 93,000,000 | $ 121,000,000 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Preferred Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||
Proceeds from issuance of preferred stock, net | $ 493 | $ 742 | $ 1,470 |
Series C Preferred Stock, Depository Share | |||
Class of Stock [Line Items] | |||
Depositary shares issued (shares) | 20,000,000 | ||
Liquidation preference per share (USD per share) | $ 25 | ||
Series C Preferred Stock | |||
Class of Stock [Line Items] | |||
Ownership Interest per Depositary Share | 0.025% | ||
Liquidation preference per share (USD per share) | $ 100,000 | ||
Proceeds from issuance of preferred stock, net | $ 488 | ||
Series D Preferred Stock, Depository Share | |||
Class of Stock [Line Items] | |||
Depositary shares issued (shares) | 30,000,000 | ||
Liquidation preference per share (USD per share) | $ 25 | ||
Series D Preferred Stock | |||
Class of Stock [Line Items] | |||
Ownership Interest per Depositary Share | 0.025% | ||
Liquidation preference per share (USD per share) | $ 100,000 | ||
Proceeds from issuance of preferred stock, net | $ 742 | ||
Series E Preferred Stock, Depository Share | |||
Class of Stock [Line Items] | |||
Depositary shares issued (shares) | 30,000,000 | ||
Liquidation preference per share (USD per share) | $ 25 | ||
Series E Preferred Stock | |||
Class of Stock [Line Items] | |||
Ownership Interest per Depositary Share | 0.025% | ||
Liquidation preference per share (USD per share) | $ 100,000 | ||
Proceeds from issuance of preferred stock, net | $ 728 | ||
Series F Preferred Stock, Depository Share | |||
Class of Stock [Line Items] | |||
Depositary shares issued (shares) | 750,000 | ||
Liquidation preference per share (USD per share) | $ 1,000 | ||
Series F Preferred Stock | |||
Class of Stock [Line Items] | |||
Ownership Interest per Depositary Share | 1.00% | ||
Liquidation preference per share (USD per share) | $ 100,000 | ||
Proceeds from issuance of preferred stock, net | $ 742 | ||
Series G Preferred Stock, Depository Share | |||
Class of Stock [Line Items] | |||
Depositary shares issued (shares) | 20,000,000 | ||
Liquidation preference per share (USD per share) | $ 25 | ||
Series G Preferred Stock | |||
Class of Stock [Line Items] | |||
Ownership Interest per Depositary Share | 0.025% | ||
Liquidation preference per share (USD per share) | $ 100,000 | ||
Proceeds from issuance of preferred stock, net | $ 493 |
Shareholders' Equity - Sched108
Shareholders' Equity - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Dividends Payable [Line Items] | ||||
Preferred stock cash dividend | $ 173 | $ 130 | $ 61 | |
Common Stock Dividends Declared (in USD per share) | $ 1.44 | $ 1.32 | $ 1.16 | |
Common Stock Dividends | $ 559 | $ 536 | $ 490 | |
Series C Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 5,250 | $ 5,250 | ||
Preferred stock cash dividend | $ 26 | $ 26 | ||
Series C Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 1.32 | $ 1.32 | ||
Series D Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 5,900 | $ 5,900 | ||
Preferred stock cash dividend | $ 44 | $ 44 | ||
Series D Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 1.48 | $ 1.48 | ||
Series E Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 6,000 | $ 6,333 | ||
Preferred stock cash dividend | $ 45 | $ 48 | ||
Series E Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 1.52 | $ 1.60 | ||
Series F Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 5,250 | $ 1,663 | ||
Preferred stock cash dividend | $ 40 | $ 12 | ||
Series F Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 52.50 | $ 16.63 | ||
Series G Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 3,626 | $ 0 | ||
Preferred stock cash dividend | $ 18 | $ 0 | ||
Series G Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 0.90 | $ 0 | ||
Subsequent Event | Series C Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 1,313 | |||
Preferred stock cash dividend | $ 6 | |||
Subsequent Event | Series C Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 0.33 | |||
Subsequent Event | Series D Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 1,475 | |||
Preferred stock cash dividend | $ 11 | |||
Subsequent Event | Series D Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 0.37 | |||
Subsequent Event | Series E Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 1,500 | |||
Preferred stock cash dividend | $ 11 | |||
Subsequent Event | Series E Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 0.38 | |||
Subsequent Event | Series F Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 2,625 | |||
Preferred stock cash dividend | $ 20 | |||
Subsequent Event | Series F Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 26.26 | |||
Subsequent Event | Series G Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 1,338 | |||
Preferred stock cash dividend | $ 7 | |||
Subsequent Event | Series G Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 0.33 |
Shareholders' Equity - Sched109
Shareholders' Equity - Schedule of Shares Repurchase Plans (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jul. 31, 2016 | Mar. 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Shares Purchased | 21.1 | ||
Average Cost per Share (USD per share) | $ 64.70 | ||
Total Purchased | $ 1,365,000,000 | ||
2015 Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Amount of common stock authorized for repurchase | $ 1,800,000,000 | ||
Shares Purchased | 12.1 | ||
Average Cost per Share (USD per share) | $ 58.83 | ||
Total Purchased | $ 715,000,000 | ||
2016 Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Amount of common stock authorized for repurchase | $ 1,400,000,000 | ||
Shares Purchased | 9 | ||
Average Cost per Share (USD per share) | $ 72.66 | ||
Total Purchased | $ 650,000,000 |
Shareholders' Equity - Sched110
Shareholders' Equity - Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Equity [Abstract] | |||
Net unrealized gains on cash flow hedges | $ 229 | $ 293 | $ 276 |
Net unrealized gains (losses) on available-for-sale securities portfolio | (225) | 9 | 273 |
Net unrealized gains (losses) related to reclassified available-for-sale securities | 25 | (28) | 39 |
Net unrealized gains (losses) on available-for-sale securities | (200) | (19) | 312 |
Net unrealized losses on available-for-sale securities designated in fair value hedges | (86) | (109) | (121) |
Other-than-temporary impairment on available-for-sale securities related to factors other than credit | 0 | 0 | 1 |
Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries | 95 | (14) | (14) |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit | (9) | (16) | (29) |
Net unrealized losses on retirement plans | (194) | (183) | (272) |
Foreign currency translation | (1,875) | (1,394) | (660) |
Total | $ (2,040) | $ (1,442) | $ (507) |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 21,103 | $ 21,328 | $ 20,248 |
Other comprehensive income (loss) | (598) | (935) | (412) |
Ending balance | 21,219 | 21,103 | 21,328 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,442) | (507) | (95) |
Other comprehensive income (loss) before reclassifications | (589) | (1,012) | |
Amounts reclassified into (out of) earnings | (9) | 77 | |
Other comprehensive income (loss) | (598) | (935) | (412) |
Ending balance | (2,040) | (1,442) | (507) |
Net Unrealized Gains (Losses) on Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 293 | 276 | |
Other comprehensive income (loss) before reclassifications | (64) | 20 | |
Amounts reclassified into (out of) earnings | 0 | (3) | |
Other comprehensive income (loss) | (64) | 17 | |
Ending balance | 229 | 293 | 276 |
Net Unrealized Gains (Losses) on Available-for-Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (128) | 192 | |
Other comprehensive income (loss) before reclassifications | (164) | (314) | |
Amounts reclassified into (out of) earnings | 6 | (6) | |
Other comprehensive income (loss) | (158) | (320) | |
Ending balance | (286) | (128) | 192 |
Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (14) | (14) | |
Other comprehensive income (loss) before reclassifications | 109 | 0 | |
Amounts reclassified into (out of) earnings | 0 | 0 | |
Other comprehensive income (loss) | 109 | 0 | |
Ending balance | 95 | (14) | (14) |
Other-Than-Temporary Impairment on Held-to-Maturity Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (16) | (29) | |
Other comprehensive income (loss) before reclassifications | 8 | 15 | |
Amounts reclassified into (out of) earnings | (1) | (2) | |
Other comprehensive income (loss) | 7 | 13 | |
Ending balance | (9) | (16) | (29) |
Net Unrealized Losses on Retirement Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (183) | (272) | |
Other comprehensive income (loss) before reclassifications | 0 | 1 | |
Amounts reclassified into (out of) earnings | (11) | 88 | |
Other comprehensive income (loss) | (11) | 89 | |
Ending balance | (194) | (183) | (272) |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,394) | (660) | |
Other comprehensive income (loss) before reclassifications | (478) | (734) | |
Amounts reclassified into (out of) earnings | (3) | 0 | |
Other comprehensive income (loss) | (481) | (734) | |
Ending balance | $ (1,875) | $ (1,394) | $ (660) |
Shareholders' Equity - Adjustme
Shareholders' Equity - Adjustments to Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||
Interest-rate contracts, net of related taxes of $0 and $2, respectively | $ 2,084 | $ 2,088 | $ 2,260 |
Sales of non-U.S. entities, net of related taxes of ($2) and $0, respectively | (372) | (735) | $ (889) |
Total reclassifications into AOCI | (9) | 77 | |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | Interest-rate contracts | |||
Class of Stock [Line Items] | |||
Interest-rate contracts, net of related taxes of $0 and $2, respectively | 0 | (3) | |
Interest-rate contracts, taxes | 0 | 2 | |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Available-for-Sale Securities | |||
Class of Stock [Line Items] | |||
Net realized gains from sales of available-for-sale securities, net of related taxes of ($4) and $1, respectively | 6 | (6) | |
Net realized gains from sales of available-for-sale securities, taxes | (4) | (1) | |
Reclassification out of Accumulated Other Comprehensive Income | Other-Than-Temporary Impairment on Securities | |||
Class of Stock [Line Items] | |||
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $1 and $0, respectively | (1) | (2) | |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, taxes | 1 | 0 | |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Actuarial Losses | |||
Class of Stock [Line Items] | |||
Amortization of actuarial losses, net of related taxes of ($1) and ($51), respectively | (11) | 88 | |
Amortization of actuarial losses, taxes | (1) | (51) | |
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Translation | |||
Class of Stock [Line Items] | |||
Sales of non-U.S. entities, net of related taxes of ($2) and $0, respectively | (3) | 0 | |
Sale of non-U.S. entities, taxes | $ (2) | $ 0 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Retained earnings | $ 17,459 | $ 16,049 |
Capital ratio: required common equity tier 1 capital | 5.50% | 4.50% |
Capital ratio: required tier 1 capital | 7.00% | 6.00% |
Capital ratio: required total capital | 9.00% | 8.00% |
Capital ratio: required tier 1 leverage | 4.00% | 4.00% |
Percentage of goodwill and other intangible assets net of associated deferred tax liabilities allocated to other intangible assets | 60.00% | 40.00% |
Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,286 | $ 10,250 |
Retained earnings | 17,459 | 16,049 |
Accumulated other comprehensive income (loss) | (1,936) | (1,422) |
Treasury stock, at cost | (7,682) | (6,457) |
Total | 18,127 | 18,420 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (6,348) | (5,927) |
Other adjustments | (155) | (60) |
Common equity tier 1 capital | 11,624 | 12,433 |
Preferred stock | 3,196 | 2,703 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 237 |
Other adjustments | (103) | (109) |
Tier 1 capital | 14,717 | 15,264 |
Qualifying subordinated long-term debt | 1,172 | 1,358 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 713 |
ALLL and other | 19 | 12 |
Other adjustments | 1 | 2 |
Total capital | 15,909 | 17,349 |
Credit risk | 50,900 | 51,733 |
Operational risk(4) | 44,579 | 43,882 |
Market risk | 3,822 | 3,937 |
Total risk-weighted assets | 99,301 | 99,552 |
Adjusted quarterly average assets | $ 226,310 | $ 221,880 |
Common equity tier 1 capital | 11.70% | 12.50% |
Tier 1 capital | 14.80% | 15.30% |
Total capital | 16.00% | 17.40% |
Tier 1 leveraged | 6.50% | 6.90% |
Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,286 | $ 10,250 |
Retained earnings | 17,459 | 16,049 |
Accumulated other comprehensive income (loss) | (1,936) | (1,422) |
Treasury stock, at cost | (7,682) | (6,457) |
Total | 18,127 | 18,420 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (6,348) | (5,927) |
Other adjustments | (155) | (60) |
Common equity tier 1 capital | 11,624 | 12,433 |
Preferred stock | 3,196 | 2,703 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 237 |
Other adjustments | (103) | (109) |
Tier 1 capital | 14,717 | 15,264 |
Qualifying subordinated long-term debt | 1,172 | 1,358 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 713 |
ALLL and other | 77 | 66 |
Other adjustments | 1 | 2 |
Total capital | 15,967 | 17,403 |
Credit risk | 98,125 | 93,515 |
Market risk | 1,751 | 2,378 |
Total risk-weighted assets | 99,876 | 95,893 |
Adjusted quarterly average assets | $ 226,310 | $ 221,880 |
Common equity tier 1 capital | 11.60% | 13.00% |
Tier 1 capital | 14.70% | 15.90% |
Total capital | 16.00% | 18.10% |
Tier 1 leveraged | 6.50% | 6.90% |
State Street Bank | Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 11,376 | $ 10,938 |
Retained earnings | 12,285 | 10,655 |
Accumulated other comprehensive income (loss) | (1,648) | (1,230) |
Treasury stock, at cost | 0 | 0 |
Total | 22,013 | 20,363 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (6,060) | (5,631) |
Other adjustments | (148) | (85) |
Common equity tier 1 capital | 15,805 | 14,647 |
Preferred stock | 0 | 0 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 0 |
Other adjustments | 0 | 0 |
Tier 1 capital | 15,805 | 14,647 |
Qualifying subordinated long-term debt | 1,179 | 1,371 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 15 | 8 |
Other adjustments | 0 | 0 |
Total capital | 16,999 | 16,026 |
Credit risk | 47,383 | 47,677 |
Operational risk(4) | 44,043 | 43,324 |
Market risk | 3,822 | 3,939 |
Total risk-weighted assets | 95,248 | 94,940 |
Adjusted quarterly average assets | $ 222,584 | $ 217,358 |
Common equity tier 1 capital | 16.60% | 15.40% |
Tier 1 capital | 16.60% | 15.40% |
Total capital | 17.80% | 16.90% |
Tier 1 leveraged | 7.10% | 6.70% |
State Street Bank | Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 11,376 | $ 10,938 |
Retained earnings | 12,285 | 10,655 |
Accumulated other comprehensive income (loss) | (1,648) | (1,230) |
Treasury stock, at cost | 0 | 0 |
Total | 22,013 | 20,363 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (6,060) | (5,631) |
Other adjustments | (148) | (85) |
Common equity tier 1 capital | 15,805 | 14,647 |
Preferred stock | 0 | 0 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 0 |
Other adjustments | 0 | 0 |
Tier 1 capital | 15,805 | 14,647 |
Qualifying subordinated long-term debt | 1,179 | 1,371 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 77 | 66 |
Other adjustments | 0 | 0 |
Total capital | 17,061 | 16,084 |
Credit risk | 94,413 | 89,164 |
Market risk | 1,751 | 2,378 |
Total risk-weighted assets | 96,164 | 91,542 |
Adjusted quarterly average assets | $ 222,584 | $ 217,358 |
Common equity tier 1 capital | 16.40% | 16.00% |
Tier 1 capital | 16.40% | 16.00% |
Total capital | 17.70% | 17.60% |
Tier 1 leveraged | 7.10% | 6.70% |
Net Interest Revenue - Componen
Net Interest Revenue - Components of Interest Revenue and Interest Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Banking and Thrift [Abstract] | |||
Deposits with banks | $ 126 | $ 208 | $ 196 |
U.S. Treasury and federal agencies | 821 | 735 | 672 |
State and political subdivisions | 224 | 227 | 231 |
Other investments | 756 | 934 | 1,241 |
Securities purchased under resale agreements | 146 | 62 | 38 |
Loans and leases | 378 | 311 | 266 |
Other interest-earning assets | 61 | 11 | 8 |
Total interest revenue | 2,512 | 2,488 | 2,652 |
Deposits | 85 | 97 | 99 |
Securities sold under repurchase agreements | 1 | 0 | 0 |
Short-term borrowings | 7 | 7 | 5 |
Long-term debt | 260 | 250 | 245 |
Other interest-bearing liabilities | 75 | 46 | 43 |
Total interest expense | 428 | 400 | 392 |
Net interest revenue | $ 2,084 | $ 2,088 | $ 2,260 |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | 84 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued during period | 65,700,000 | 60,900,000 | 56,900,000 | |
Shares awarded, but not delivered, available for reissue | 23,700,000 | 23,700,000 | ||
Shares available for grant | 18,500,000 | 18,500,000 | ||
Options granted (in shares) | 0 | |||
Options outstanding (in shares) | 0 | 0 | ||
Allocated share-based compensation | $ 268,000,000 | $ 319,000,000 | $ 329,000,000 | |
Accelerated recognition due to restructuring plan | $ 9,000,000 | $ 10,000,000 | $ 20,000,000 | |
Stock Options and SARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | 955,000 | 1,206,000 | 1,861,000 | 955,000 |
Intrinsic value of exercises in period | $ 1,000,000 | $ 5,000,000 | $ 14,000,000 | |
Unrecognized share-based compensation expense for stock options | $ 0 | $ 0 | ||
Stock Options and SARs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Stock Options and SARs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 0 | |||
Fair value for vested in period | $ 1,000,000 | 54,000,000 | ||
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Deferred Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 4,336,000 | 3,461,000 | ||
Fair value for vested in period | $ 275,000,000 | $ 340,000,000 | 310,000,000 | |
Costs not yet recognized | $ 252,000,000 | 252,000,000 | ||
Granted (in USD per share) | $ 52.49 | $ 72.98 | ||
Period of recognition for unrecognized share-based compensation | 2 years 4 months 24 days | |||
Deferred Stock Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Deferred Stock Awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 506,000 | 400,000 | ||
Fair value for vested in period | $ 21,000,000 | $ 39,000,000 | $ 44,000,000 | |
Costs not yet recognized | $ 3,900,000 | $ 3,900,000 | ||
Granted (in USD per share) | $ 50.81 | $ 72.24 | ||
Period of recognition for unrecognized share-based compensation | 2 years 1 month 6 days | |||
Performance Shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | 955 |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Options and Stock Appreciation Rights (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | ||
End of Period (in shares) | 0 | |
Employee Stock Option | ||
Shares | ||
Beginning of Period (in shares) | 0 | |
End of Period (in shares) | 0 | |
Stock Options and SARs | ||
Shares | ||
Beginning of Period (in shares) | 1,206,000 | 1,861,000 |
Exercised (in shares) | (227,000) | (398,000) |
Forfeited or Expired (in shares) | (24,000) | (257,000) |
End of Period (in shares) | 955,000 | 1,206,000 |
Weighted-Average Exercise Price | ||
Beginning of Period (in USD per share) | $ 76.29 | $ 74.12 |
Exercised (in USD per share) | 70.59 | 62.63 |
Forfeited or Expired (in USD per share) | 81.71 | 81.71 |
End of Period (in USD per share) | $ 77.52 | $ 76.29 |
Weighted average contractual term of options outstanding | 8 months 12 days | |
Total Intrinsic Value | $ 2.6 | |
Stock Appreciation Rights (SARs) | ||
Shares | ||
Beginning of Period (in shares) | 955 | |
End of Period (in shares) | 955 |
Equity-Based Compensation - Res
Equity-Based Compensation - Restricted Stock Awards (Details) - Restricted Stock shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Shares | |
Beginning of Period (in shares) | shares | 31 |
Vested (in shares) | shares | (31) |
Forfeited or Expired (in shares) | shares | 0 |
End of Period (in shares) | shares | 0 |
Weighted-Average Grant Date Fair Value | |
Beginning of Period (in USD per share) | $ / shares | $ 41.27 |
Vested (in USD per share) | $ / shares | 41.22 |
Forfeited or Expired (in USD per share) | $ / shares | 0 |
End of Period (in USD per share) | $ / shares | $ 0 |
Equity-Based Compensation - Def
Equity-Based Compensation - Deferred Stock Awards (Details) - Deferred Stock Awards - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | ||
Beginning of Period (in shares) | 8,736 | 12,431 |
Granted (in shares) | 4,336 | 3,461 |
Vested (in shares) | (4,897) | (6,910) |
Forfeited or Expired (in shares) | (361) | (246) |
End of Period (in shares) | 7,814 | 8,736 |
Weighted-Average Grant Date Fair Value | ||
Beginning of Period (in USD per share) | $ 61.59 | $ 51.47 |
Granted (in USD per share) | 52.49 | 72.98 |
Vested (in USD per share) | 56.18 | 49.17 |
Forfeited or Expired (in USD per share) | 60.12 | 59.22 |
End of Period (in USD per share) | $ 60.01 | $ 61.59 |
Equity-Based Compensation - Per
Equity-Based Compensation - Performance Awards (Details) - Performance Shares - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | ||
Beginning of Period (in shares) | 1,165 | 1,627 |
Granted (in shares) | 506 | 400 |
Forfeited or Expired (in shares) | 0 | (1) |
Paid Out (in shares) | (424) | (861) |
End of Period (in shares) | 1,247 | 1,165 |
Weighted-Average Grant Date Fair Value | ||
Beginning of Period (in USD per share) | $ 60.45 | $ 49.46 |
Granted (in USD per share) | 50.81 | 72.24 |
Forfeited or Expired (in USD per share) | 0 | 41.02 |
Paid Out (in USD per share) | 49.27 | 45.09 |
End of Period (in USD per share) | $ 60.37 | $ 60.45 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)employee | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit expense | $ 16 | $ 46 | $ 32 |
Contributions by employer | $ 132 | 130 | $ 147 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of eligible employees for pension plan (in employee) | employee | 0 | ||
Defined benefit obligation | $ 1,230 | 1,180 | |
Defined benefit underfunded status | 32 | 16 | |
Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit obligation | 136 | 155 | |
Defined benefit underfunded status | 21 | 30 | |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit obligation | 21 | 30 | |
Defined benefit underfunded status | $ 136 | $ 155 |
Occupancy Expense and Inform121
Occupancy Expense and Information Systems and Communications Expense - Narrative (Details) ft² in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)ft² | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Occupancy Expense and Information Systems and Communications Expense [Abstract] | |||
Depreciation | $ 472 | $ 443 | $ 417 |
Property Subject to or Available for Operating Lease [Line Items] | |||
Capital lease obligation | 194 | 231 | |
Interest expense on capital lease | 22 | 32 | 38 |
Accumulated amortization on capital lease | 365 | 334 | |
Sublease rental expense | 194 | 190 | 204 |
Sublease revenue | 4 | $ 4 | $ 6 |
Future minimum sublease rental revenue on capital lease | 43 | ||
Future minimum sublease rental revenue on operating lease | $ 16 | ||
One Lincoln Street | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Leased area (in sqft) | ft² | 1,025 | ||
Noncancelable capital leases expiration | 20 years | ||
Sublease building (in sqft) | ft² | 127 |
Occupancy Expense and Inform122
Occupancy Expense and Information Systems and Communications Expense - Summary of Future Minimum Lease Payments Under Non-Cancelable Capital and Operating Leases (Details) $ in Millions | Dec. 31, 2016USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Capital leases due 2017 | $ 57 |
Capital leases due 2018 | 53 |
Capital leases due 2019 | 46 |
Capital leases due 2020 | 45 |
Capital leases due 2021 | 45 |
Capital leases due thereafter | 79 |
Capital leases due | 325 |
Less amount representing interest payments | (76) |
Present value of minimum lease payments | 249 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating leases due 2017 | 205 |
Operating leases due 2018 | 185 |
Operating leases due 2019 | 138 |
Operating leases due 2020 | 123 |
Operating leases due 2021 | 118 |
Operating leases due thereafter | 380 |
Operating leases due | 1,149 |
Total operating and capital leases due 2017 | 262 |
Total operating and capital leases due 2018 | 238 |
Total operating and capital leases due 2019 | 184 |
Total operating and capital leases due 2020 | 168 |
Total operating and capital leases due 2021 | 163 |
Total operating and capital leases due thereafter | 459 |
Total operating and capital leases due | $ 1,474 |
Expenses - Schedule of Expenses
Expenses - Schedule of Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Expenses [Abstract] | |||
Insurance | $ 93 | $ 126 | $ 80 |
Regulatory fees and assessments | 82 | 115 | 74 |
Litigation | 50 | 422 | 173 |
Securities processing | 42 | 79 | 68 |
Other | 317 | 276 | 356 |
Total other expenses | $ 584 | $ 1,018 | $ 751 |
Expenses - Narrative (Details)
Expenses - Narrative (Details) - USD ($) $ in Millions | Jul. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||||
Acquisition related costs | $ 69 | $ 20 | $ 58 | |
Restructuring charges | $ 142 | |||
GEAM | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Acquisition related costs | $ 53 |
Expenses - Restructuring Reserv
Expenses - Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 23 | $ 69 | $ 106 |
Accruals for State Street Beacon | 142 | ||
Payments and Other Adjustments | (107) | (51) | (112) |
Ending balance | 56 | 23 | 69 |
Employee Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 9 | 39 | 52 |
Payments and Other Adjustments | (64) | (25) | (45) |
Ending balance | 37 | 9 | 39 |
Real Estate Consolidation | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 11 | 23 | 47 |
Payments and Other Adjustments | (12) | (9) | (46) |
Ending balance | 17 | 11 | 23 |
Asset and Other Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 3 | 7 | 7 |
Payments and Other Adjustments | (31) | (17) | (21) |
Ending balance | 2 | 3 | 7 |
State Street Beacon | Employee Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Accruals for State Street Beacon | 94 | ||
State Street Beacon | Real Estate Consolidation | |||
Restructuring Reserve [Roll Forward] | |||
Accruals for State Street Beacon | 18 | ||
State Street Beacon | Asset and Other Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Accruals for State Street Beacon | 30 | ||
Ops and IT | |||
Restructuring Reserve [Roll Forward] | |||
Accruals for State Street Beacon | (2) | 5 | 75 |
Ops and IT | Employee Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Accruals for State Street Beacon | (2) | (5) | 32 |
Ops and IT | Real Estate Consolidation | |||
Restructuring Reserve [Roll Forward] | |||
Accruals for State Street Beacon | 0 | (3) | 22 |
Ops and IT | Asset and Other Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Accruals for State Street Beacon | $ 0 | $ 13 | $ 21 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense related to net gains from sales of investment securities | $ 4,000,000 | $ (3,000,000) | $ 5,000,000 |
Foreign income (loss) before taxes | 1,220,000,000 | 1,300,000,000 | $ 1,330,000,000 |
Unappropriated retained earnings | 5,500,000,000 | ||
Tax expense if unappropriated foreign earnings repatriated | 1,100,000,000 | ||
Tax credit carryforwards | 425,000,000 | 0 | |
Tax credit carryforwards subject to expiration | 406,000,000 | ||
Operating loss carryforwards | 46,000,000 | 26,000,000 | |
Operating loss carryforwards that don't expire | 31,000,000 | ||
Operating loss carryforwards subject to expiration | 15,000,000 | ||
Operating loss carryforwards valuation allowance | 38,000,000 | 22,000,000 | |
Unrecognized tax benefits that would impact effective tax rate | 63,000,000 | ||
Interest accrued for tax examination | 5,000,000 | 3,000,000 | |
Maximum estimated income tax expense change in unrecognized tax benefit in the next 12 months | 14,000,000 | ||
Benefit if maximum estimated income tax expense change in unrecognized tax benefit recognized in the next 12 months | 5,000,000 | ||
Interest expense for tax examination | $ 2,000,000 | $ 5,000,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ (14) | $ 52 | $ 59 |
State | 30 | 92 | 39 |
Non-U.S. | 320 | 342 | 257 |
Total current expense | 336 | 486 | 355 |
Deferred: | |||
Federal | (311) | (39) | 38 |
State | 38 | 40 | 10 |
Non-U.S. | (85) | (169) | 12 |
Total deferred (benefit) expense | (358) | (168) | 60 |
Total income tax expense (benefit) | $ (22) | $ 318 | $ 415 |
Income Taxes - Schedule of C128
Income Taxes - Schedule of Components of Deferred Tax Liabilities and Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Unrealized losses on investment securities, net | $ 157 | $ 57 |
Deferred compensation | 285 | 167 |
Defined benefit pension plan | 116 | 143 |
Restructuring charges and other reserves | 199 | 383 |
Foreign currency translation | 225 | 155 |
Tax credit carryforwards | 425 | 0 |
Other | 105 | 32 |
Total deferred tax assets | 1,512 | 937 |
Valuation allowance for deferred tax assets | (66) | (27) |
Deferred tax assets, net of valuation allowance | 1,446 | 910 |
Deferred tax liabilities: | ||
Leveraged lease financing | 313 | 334 |
Fixed and intangible assets | 886 | 804 |
Non-U.S. earnings | 164 | 265 |
Other | 120 | 121 |
Total deferred tax liabilities | $ 1,483 | $ 1,524 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of the U.S. Statutory Income Tax Rate to the Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 2.00% | 4.20% | 1.50% |
Tax-exempt income | (6.10%) | (5.60%) | (5.10%) |
Business tax credits(1) | (13.60%) | (9.40%) | (6.80%) |
Foreign tax differential | (7.70%) | (9.60%) | (8.50%) |
Foreign designated earnings | (6.80%) | (0.00%) | (0.00%) |
Foreign capital transactions | (4.30%) | (0.00%) | (0.00%) |
Tax refund | 0.00% | (2.80%) | 0.00% |
Litigation expense | 1.40% | 2.70% | 1.30% |
Other, net | (0.90%) | (0.70%) | (0.30%) |
Effective tax rate | (1.00%) | 13.80% | 17.10% |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 63 | $ 163 |
Decrease related to agreements with tax authorities | (13) | (122) |
Increase related to tax positions taken during current year | 7 | 8 |
Increase related to tax positions taken during prior year | 14 | 14 |
Ending balance | $ 71 | $ 63 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Net income | $ 2,143 | $ 1,980 | $ 2,022 |
Preferred stock dividends | (173) | (130) | (61) |
Dividends and undistributed earnings allocated to participating securities | (2) | (2) | (3) |
Net income available to common shareholders | $ 1,968 | $ 1,848 | $ 1,958 |
Basic average common shares | 391,485 | 407,856 | 424,223 |
Effect of dilutive securities: common stock options and common stock awards (in shares) | 4,605 | 5,782 | 7,784 |
Diluted average common shares | 396,090 | 413,638 | 432,007 |
Anti-dilutive securities (in shares) | 2,143 | 661 | 1,498 |
Earnings per Common Share: | |||
Basic (in USD per share) | $ 5.03 | $ 4.53 | $ 4.62 |
Diluted (in USD per share) | $ 4.97 | $ 4.47 | $ 4.53 |
Line of Business Information -
Line of Business Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)line_of_business | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of lines of business | line_of_business | 2 | ||
Net expenses | $ 8,077 | $ 8,050 | $ 7,827 |
Acquisition and restructuring costs | $ 209 | 25 | 133 |
Boston Financial Data Services, Inc. | |||
Segment Reporting Information [Line Items] | |||
Ownership percentage | 50.00% | ||
Other | |||
Segment Reporting Information [Line Items] | |||
Net expenses | $ 199 | 98 | 219 |
Acquisition and restructuring costs | 209 | 25 | 133 |
Severance costs | $ (10) | $ 73 | 84 |
Provision for litigation and other costs | $ 2 | ||
Investment Servicing and Management Services | Investment Servicing and Investment Management | Minimum | |||
Segment Reporting Information [Line Items] | |||
Percent of consolidated revenues | 75.00% | ||
Investment Servicing and Management Services | Investment Servicing and Investment Management | Maximum | |||
Segment Reporting Information [Line Items] | |||
Percent of consolidated revenues | 80.00% | ||
Processing and Other Services | Investment Servicing and Investment Management | Minimum | |||
Segment Reporting Information [Line Items] | |||
Percent of consolidated revenues | 20.00% | ||
Processing and Other Services | Investment Servicing and Investment Management | Maximum | |||
Segment Reporting Information [Line Items] | |||
Percent of consolidated revenues | 25.00% |
Line of Business Information133
Line of Business Information - Summary of Line of Business (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Servicing fees | $ 5,073 | $ 5,153 | $ 5,108 |
Management fees | 1,292 | 1,174 | 1,207 |
Trading services | 1,099 | 1,146 | 1,084 |
Securities finance | 562 | 496 | 437 |
Processing fees and other | 90 | 309 | 174 |
Total fee revenue | 8,116 | 8,278 | 8,010 |
Net interest revenue | 2,084 | 2,088 | 2,260 |
Gains (losses) related to investment securities, net | 7 | (6) | 4 |
Total revenue | 10,207 | 10,360 | 10,274 |
Provision for loan losses | 10 | 12 | 10 |
Total expenses | 8,077 | 8,050 | 7,827 |
Income before income tax expense | $ 2,120 | $ 2,298 | $ 2,437 |
Pre-tax margin | 21.00% | 22.00% | 24.00% |
Average assets | $ 229,700 | $ 250,500 | $ 238,100 |
Investment Servicing | |||
Segment Reporting Information [Line Items] | |||
Average assets | 225,300 | 246,600 | 234,200 |
Investment Management | |||
Segment Reporting Information [Line Items] | |||
Average assets | 4,400 | 3,900 | 3,900 |
Operating Segments | Investment Servicing | |||
Segment Reporting Information [Line Items] | |||
Servicing fees | 5,073 | 5,153 | 5,108 |
Management fees | 0 | 0 | 0 |
Trading services | 1,052 | 1,108 | 1,039 |
Securities finance | 562 | 496 | 437 |
Processing fees and other | 105 | 325 | 179 |
Total fee revenue | 6,792 | 7,082 | 6,763 |
Net interest revenue | 2,081 | 2,086 | 2,245 |
Gains (losses) related to investment securities, net | 7 | (6) | 4 |
Total revenue | 8,880 | 9,162 | 9,012 |
Provision for loan losses | 10 | 12 | 10 |
Total expenses | 6,660 | 6,990 | 6,648 |
Income before income tax expense | $ 2,210 | $ 2,160 | $ 2,354 |
Pre-tax margin | 25.00% | 24.00% | 26.00% |
Operating Segments | Investment Management | |||
Segment Reporting Information [Line Items] | |||
Servicing fees | $ 0 | $ 0 | $ 0 |
Management fees | 1,292 | 1,174 | 1,207 |
Trading services | 47 | 38 | 45 |
Securities finance | 0 | 0 | 0 |
Processing fees and other | (15) | (16) | (5) |
Total fee revenue | 1,324 | 1,196 | 1,247 |
Net interest revenue | 3 | 2 | 15 |
Gains (losses) related to investment securities, net | 0 | 0 | 0 |
Total revenue | 1,327 | 1,198 | 1,262 |
Provision for loan losses | 0 | 0 | 0 |
Total expenses | 1,218 | 962 | 960 |
Income before income tax expense | $ 109 | $ 236 | $ 302 |
Pre-tax margin | 8.00% | 20.00% | 24.00% |
Other | |||
Segment Reporting Information [Line Items] | |||
Servicing fees | $ 0 | $ 0 | $ 0 |
Management fees | 0 | 0 | 0 |
Trading services | 0 | 0 | 0 |
Securities finance | 0 | 0 | 0 |
Processing fees and other | 0 | 0 | 0 |
Total fee revenue | 0 | 0 | 0 |
Net interest revenue | 0 | 0 | 0 |
Gains (losses) related to investment securities, net | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 |
Provision for loan losses | 0 | 0 | 0 |
Total expenses | 199 | 98 | 219 |
Income before income tax expense | $ (199) | $ (98) | $ (219) |
Non-U.S. Activities - Narrative
Non-U.S. Activities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 10,207 | $ 10,360 | $ 10,274 |
Assets | 242,698 | 245,155 | |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,050 | 938 | 1,020 |
Non-U.S. | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,419 | 4,428 | $ 4,644 |
Assets | $ 79,100 | $ 78,100 |
Non-U.S. Activities - Schedule
Non-U.S. Activities - Schedule Of Results From Non-U.S. Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 10,207 | $ 10,360 | $ 10,274 |
Income before income taxes | 2,120 | 2,298 | 2,437 |
Non-U.S. | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 4,419 | 4,428 | 4,644 |
Income before income taxes | 1,047 | 1,193 | 1,343 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5,788 | 5,932 | 5,630 |
Income before income taxes | $ 1,073 | $ 1,105 | $ 1,094 |
Parent Company Financial Sta136
Parent Company Financial Statements - Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Total revenue | $ 10,207 | $ 10,360 | $ 10,274 |
Other expenses | 584 | 1,018 | 751 |
Total expenses | 8,077 | 8,050 | 7,827 |
Income tax expense (benefit) | (22) | 318 | 415 |
Net income | 2,143 | 1,980 | 2,022 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash dividends from consolidated banking subsidiary | 640 | 585 | 1,470 |
Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities | 75 | 171 | 138 |
Other, net | 92 | 73 | 63 |
Total revenue | 807 | 829 | 1,671 |
Interest expense | 249 | 209 | 193 |
Other expenses | 107 | 310 | 55 |
Total expenses | 356 | 519 | 248 |
Income tax expense (benefit) | (47) | (186) | (83) |
Income (loss) before equity in undistributed income of consolidated subsidiaries and unconsolidated entities | 498 | 496 | 1,506 |
Consolidated banking subsidiary | 1,629 | 1,384 | 360 |
Consolidated non-banking subsidiaries and unconsolidated entities | 16 | 100 | 156 |
Net income | $ 2,143 | $ 1,980 | $ 2,022 |
Parent Company Financial Sta137
Parent Company Financial Statements - Statement of Condition (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | ||||
Interest-bearing deposits with banks | $ 70,935 | $ 75,338 | ||
Trading account assets | 1,024 | 849 | ||
Investment securities available-for-sale | 61,998 | 70,070 | ||
Other assets | 38,328 | 33,903 | ||
Total assets | 242,698 | 245,155 | ||
Liabilities: | ||||
Total liabilities | 221,479 | 224,020 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Shareholders’ equity | 21,219 | 21,103 | $ 21,328 | $ 20,248 |
Total liabilities and shareholders' equity | 242,698 | 245,155 | ||
Parent Company | ||||
Assets: | ||||
Interest-bearing deposits with banks | 3,635 | 5,735 | ||
Trading account assets | 325 | 308 | ||
Investment securities available-for-sale | 39 | 35 | ||
Consolidated banking subsidiary | 22,147 | 20,584 | ||
Consolidated non-banking subsidiaries | 2,687 | 2,816 | ||
Unconsolidated entities | 297 | 315 | ||
Consolidated banking subsidiary | 2,743 | 1,558 | ||
Consolidated non-banking subsidiaries and unconsolidated entities | 126 | 275 | ||
Other assets | 461 | 478 | ||
Total assets | 32,460 | 32,104 | ||
Liabilities: | ||||
Accrued expenses and other liabilities | 514 | 643 | ||
Long-term debt | 10,727 | 10,326 | ||
Total liabilities | 11,241 | 10,969 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Shareholders’ equity | 21,219 | 21,135 | ||
Total liabilities and shareholders' equity | $ 32,460 | $ 32,104 |
Parent Company Financial Sta138
Parent Company Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities: | |||
Net cash provided by operating activities | $ 2,290 | $ (1,403) | $ (561) |
Investing Activities: | |||
Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary | 4,403 | 18,185 | (29,266) |
Business acquisitions | (437) | 0 | 0 |
Net cash provided by (used in) investing activities | 4,230 | 24,995 | (28,492) |
Financing Activities: | |||
Proceeds from issuance of long-term debt, net of issuance costs | 1,492 | 2,983 | 994 |
Payments for long-term debt | (1,441) | (1,155) | (788) |
Proceeds from issuance of preferred stock, net | 493 | 742 | 1,470 |
Proceeds from exercises of common stock options | 0 | 4 | 14 |
Purchases of common stock | (1,365) | (1,520) | (1,650) |
Repurchases of common stock for employee tax withholding | (122) | (222) | (232) |
Payments for cash dividends | (723) | (655) | (539) |
Net cash (used in) provided by financing activities | (6,413) | (24,240) | 27,688 |
Net increase (decrease) | 107 | (648) | (1,365) |
Cash and due from banks at beginning of period | 1,207 | 1,855 | 3,220 |
Cash and due from banks at end of period | 1,314 | 1,207 | 1,855 |
Parent Company | |||
Operating Activities: | |||
Net cash provided by operating activities | 417 | 926 | 1,767 |
Investing Activities: | |||
Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary | 2,100 | 295 | (1,610) |
Investments in consolidated banking and non-banking subsidiaries | (7,600) | (7,959) | (1,142) |
Sale or repayment of investment in consolidated banking and non-banking subsidiaries | 6,703 | 7,891 | 1,011 |
Business acquisitions | (395) | 0 | 0 |
Net cash provided by (used in) investing activities | 808 | 227 | (1,741) |
Financing Activities: | |||
Net increase (decrease) in commercial paper | 0 | (2,485) | 667 |
Proceeds from issuance of long-term debt, net of issuance costs | 1,492 | 2,983 | 994 |
Payments for long-term debt | (1,000) | 0 | (750) |
Proceeds from issuance of preferred stock, net | 493 | 742 | 1,470 |
Proceeds from exercises of common stock options | 0 | 4 | 14 |
Purchases of common stock | (1,365) | (1,520) | (1,650) |
Repurchases of common stock for employee tax withholding | (122) | (222) | (232) |
Payments for cash dividends | (723) | (655) | (539) |
Net cash (used in) provided by financing activities | (1,225) | (1,153) | (26) |
Net increase (decrease) | 0 | 0 | 0 |
Cash and due from banks at beginning of period | 0 | 0 | 0 |
Cash and due from banks at end of period | $ 0 | $ 0 | $ 0 |