Statement Of Income Interest Ba
Statement Of Income Interest Based Revenue (USD $) | |||||||||||||||||||
In Millions, except Share data in Thousands | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 | |||||||||||||||
Fee revenue: | |||||||||||||||||||
Servicing fees | $833 | $966 | $2,394 | $2,903 | |||||||||||||||
Management fees | 219 | 261 | 593 | 819 | |||||||||||||||
Trading services | 269 | 363 | 824 | 1,049 | |||||||||||||||
Securities finance | 105 | 246 | 487 | 901 | |||||||||||||||
Processing fees and other | 45 | 63 | 111 | 194 | |||||||||||||||
Total fee revenue | 1,471 | 1,899 | 4,409 | 5,866 | |||||||||||||||
Net interest revenue: | |||||||||||||||||||
Interest revenue | 898 | 1,027 | 2,409 | 3,452 | |||||||||||||||
Interest expense | 175 | 502 | 542 | 1,645 | |||||||||||||||
Net interest revenue | 723 | 525 | 1,867 | 1,807 | |||||||||||||||
Gains (Losses) related to investment securities, net: | |||||||||||||||||||
Net gains from sales of available-for-sale securities | 141 | 26 | 260 | 41 | |||||||||||||||
Net losses from other-than-temporary impairment | (99) | [1] | (29) | [1] | (176) | [1] | (44) | [1] | |||||||||||
Gains (Losses) related to investment securities, net | 42 | (3) | 84 | (3) | |||||||||||||||
Gains on sale of CitiStreet interest, net of exit and other associated costs | 0 | 350 | 0 | 350 | |||||||||||||||
Total revenue | 2,236 | 2,771 | 6,360 | 8,020 | |||||||||||||||
Provision for loan losses | 16 | 0 | 114 | 0 | |||||||||||||||
Expenses: | |||||||||||||||||||
Salaries and employee benefits | 819 | 1,022 | 2,246 | 3,144 | |||||||||||||||
Information systems and communications | 165 | 151 | 493 | 470 | |||||||||||||||
Transaction processing services | 148 | 165 | 425 | 499 | |||||||||||||||
Occupancy | 118 | 116 | 360 | 341 | |||||||||||||||
Provision for legal exposure | 250 | 0 | 250 | 0 | |||||||||||||||
Merger and integration costs | 11 | 30 | 40 | 88 | |||||||||||||||
Professional services | 76 | 85 | 184 | 273 | |||||||||||||||
Amortization of other intangible assets | 36 | 34 | 104 | 100 | |||||||||||||||
Other | 110 | 322 | 299 | 625 | |||||||||||||||
Total expenses | 1,733 | 1,925 | 4,401 | 5,540 | |||||||||||||||
Income before income tax expense and extraordinary loss | 487 | 846 | 1,845 | 2,480 | |||||||||||||||
Income tax expense | 160 | 369 | 540 | 925 | |||||||||||||||
Income before extraordinary loss | 327 | 477 | 1,305 | 1,555 | |||||||||||||||
Extraordinary loss, net of taxes | 0 | 0 | (3,684) | 0 | |||||||||||||||
Net income (loss) | 327 | 477 | (2,379) | 1,555 | |||||||||||||||
Net income before extraordinary loss available to common shareholders | 327 | 477 | 1,142 | 1,555 | |||||||||||||||
Net income (loss) available to common shareholders | $327 | $477 | ($2,542) | $1,555 | |||||||||||||||
Earnings per common share before extraordinary loss: | |||||||||||||||||||
Basic | 0.66 | 1.1 | 2.48 | 3.81 | |||||||||||||||
Diluted | 0.66 | 1.09 | 2.45 | 3.78 | |||||||||||||||
Earnings (loss) per common share: | |||||||||||||||||||
Basic | 0.66 | 1.1 | -5.47 | 3.81 | |||||||||||||||
Diluted | 0.66 | 1.09 | -5.45 | 3.78 | |||||||||||||||
Average common shares outstanding (in thousands): | |||||||||||||||||||
Basic | 493,453 | 430,872 | 462,900 | 407,186 | |||||||||||||||
Diluted | 498,290 | 435,030 | 466,234 | 411,204 | |||||||||||||||
Cash dividends declared per share | 0.01 | 0.24 | 0.03 | 0.71 | |||||||||||||||
[1]Gross losses for 2009 periods were $828 million and $1,008 million, respectively, of which $729 million and $832 million were related to factors other than credit and were recognized in other comprehensive income (loss). |
Statement Of Financial Position
Statement Of Financial Position Unclassified - Deposit Based Operations (USD $) | ||
In Millions | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Dec. 31, 2008 |
Assets | ||
Cash and due from banks | $5,027 | $3,181 |
Interest-bearing deposits with banks | 27,479 | 55,733 |
Securities purchased under resale agreements | 1,579 | 1,635 |
Trading account assets | 150 | 815 |
Investment securities available for sale | 71,675 | 54,163 |
Investment securities held to maturity purchased under money market liquidity facility (fair value of $0 and $6,100) | 0 | 6,087 |
Investment securities held to maturity (fair value of $21,038 and $14,311) | 21,267 | 15,767 |
Loans and leases (less allowance for losses of $53 and $18) | 11,406 | 9,113 |
Premises and equipment (net of accumulated depreciation of $2,975 and $2,758) | 1,947 | 2,011 |
Accrued income receivable | 1,618 | 1,738 |
Goodwill | 4,554 | 4,527 |
Other intangible assets | 1,845 | 1,851 |
Other assets | 14,730 | 17,010 |
Total assets | 163,277 | 173,631 |
Deposits: | ||
Noninterest-bearing | 13,572 | 32,785 |
Interest-bearing-U.S. | 5,327 | 4,558 |
Interest-bearing-Non-U.S. | 72,869 | 74,882 |
Total deposits | 91,768 | 112,225 |
Securities sold under repurchase agreements | 11,890 | 11,154 |
Federal funds purchased | 4,949 | 1,082 |
Short-term borrowings under money market liquidity facility | 0 | 6,042 |
Other short-term borrowings | 20,724 | 11,555 |
Accrued expenses and other liabilities | 11,661 | 14,380 |
Long-term debt | 8,845 | 4,419 |
Total liabilities | 149,837 | 160,857 |
Commitments and contingencies (note 8) | - | - |
Shareholders' equity | ||
Preferred stock, no par: 3,500,000 shares authorized; 20,000 shares issued and outstanding in 2008 | 0 | 1,883 |
Common stock, $1 par: 750,000,000 shares authorized; 494,652,372 and 431,976,032 shares issued | 495 | 432 |
Surplus | 9,159 | 6,992 |
Retained earnings | 6,579 | 9,135 |
Accumulated other comprehensive loss | (2,776) | (5,650) |
Treasury stock, at cost (429,499 and 418,354 shares) | (17) | (18) |
Total shareholders' equity | 13,440 | 12,774 |
Total liabilities and shareholders' equity | $163,277 | $173,631 |
1_Statement Of Financial Positi
Statement Of Financial Position Unclassified - Deposit Based Operations (Parenthetical) (USD $) | ||
In Millions, except Share data | Sep. 30, 2009
| Dec. 31, 2008
|
Investment securities held to maturity purchased under money market liquidity facility, fair value | $0 | $6,100 |
Investment securities held to maturity, fair value | 21,038 | 14,311 |
Loans and leases, allowance for losses | 53 | 18 |
Premises and equipment, accumulated depreciation | $2,975 | $2,758 |
Preferred stock, no par | $0 | $0 |
Preferred stock, shares authorized | 3,500,000 | 3,500,000 |
Preferred stock, shares issued | 0 | 20,000 |
Preferred stock, shares outstanding | 0 | 20,000 |
Common stock, par | $1 | $1 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 494,652,372 | 431,976,032 |
Treasury stock, shares | 429,499 | 418,354 |
Statement Of Shareholders Equit
Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | |||||||||
In Millions, except Share data in Thousands | Preferred Stock
| Common Stock Amount
| Surplus
| Retained Earnings
| Accumulated Other Comprehensive (Loss) Income
| Treasury Stock Amount
| Total
| ||
Beginning Balance at Dec. 31, 2007 | 398,366 | 12,082 | |||||||
Beginning Balance at Dec. 31, 2007 | $398 | $4,630 | $7,745 | ($575) | ($899) | $11,299 | |||
Comprehensive income: | |||||||||
Net income | 1,555 | 1,555 | |||||||
Change in net unrealized loss on available-for-sale securities, net of reclassification adjustment and losses from other-than-temporary impairment related to factors other than credit, net of related taxes of $1,792 in 2009 and $(1,580) in 2008 | (2,516) | (2,516) | |||||||
Change in net unrealized loss on fair value hedges of available-for-sale securities, net of related taxes of $58 in 2009 and $36 in 2008 | 55 | 55 | |||||||
Foreign currency translation, net of related taxes of $(107) in 2009 and $(53) in 2008 | (108) | (108) | |||||||
Change in net unrealized loss on cash flow hedges, net of related taxes of $5 in 2009 and $(1) in 2008 | (3) | (3) | |||||||
Change in net unrealized loss on hedges of net investments in non-U.S. subsidiaries, net of related taxes | 1 | 1 | |||||||
Total comprehensive income (loss) | 1,555 | (2,571) | (1,016) | ||||||
Common stock-$.03 per share in 2009 and $.71 per share in 2008 | (298) | (298) | |||||||
Common stock acquired | 552 | ||||||||
Common stock issued | 33,156 | (7,391) | |||||||
Common stock issued | 34 | 2,181 | 538 | 2,753 | |||||
Contract payments to State Street Capital Trust III | (36) | (36) | |||||||
Common stock awards and options exercised, including related taxes of $(52) in 2009 and $52 in 2008 | 429 | (4,838) | |||||||
Common stock awards and options exercised, including related taxes of $(52) in 2009 and $52 in 2008 | 18 | 344 | 362 | ||||||
Ending Balance at Sep. 30, 2008 | 432 | 6,793 | 9,002 | (3,146) | (17) | 13,064 | |||
Ending Balance at Sep. 30, 2008 | 431,951 | 405 | |||||||
Comprehensive income: | |||||||||
Beginning Balance at Dec. 31, 2008 | 431,976 | 418 | |||||||
Beginning Balance at Dec. 31, 2008 | 1,883 | 432 | 6,992 | 9,135 | (5,650) | (18) | 12,774 | ||
Comprehensive income: | |||||||||
Net income | (2,379) | (2,379) | |||||||
Change in net unrealized loss on available-for-sale securities, net of reclassification adjustment and losses from other-than-temporary impairment related to factors other than credit, net of related taxes of $1,792 in 2009 and $(1,580) in 2008 | 2,866 | 2,866 | |||||||
Change in net unrealized loss on fair value hedges of available-for-sale securities, net of related taxes of $58 in 2009 and $36 in 2008 | 97 | 97 | |||||||
Losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $(219) | (362) | (362) | |||||||
Foreign currency translation, net of related taxes of $(107) in 2009 and $(53) in 2008 | 237 | 237 | |||||||
Change in net unrealized loss on cash flow hedges, net of related taxes of $5 in 2009 and $(1) in 2008 | 7 | 7 | |||||||
Change in minimum pension liability, net of related taxes of $18 | 29 | 29 | |||||||
Total comprehensive income (loss) | (2,379) | 2,874 | 495 | ||||||
Common stock-$.03 per share in 2009 and $.71 per share in 2008 | (14) | (14) | |||||||
Preferred stock | (46) | (46) | |||||||
Prepayment of preferred stock discount | 106 | (106) | 0 | ||||||
Accretion of preferred stock discount | 11 | (11) | 0 | ||||||
Common stock issued | 58,974 | ||||||||
Common stock issued | 59 | 2,172 | 2,231 | ||||||
Repurchase of TARP preferred investment | (2,000) | (2,000) | |||||||
Repurchase of TARP common stock warrant | (60) | (60) | |||||||
Common stock awards and options exercised, including related taxes of $(52) in 2009 and $52 in 2008 | 3,702 | ||||||||
Common stock awards and options exercised, including related taxes of $(52) in 2009 and $52 in 2008 | 4 | 55 | 59 | ||||||
Other | 11 | ||||||||
Other | 1 | 1 | |||||||
Ending Balance at Sep. 30, 2009 | $0 | $495 | $9,159 | $6,579 | ($2,776) | ($17) | $13,440 | ||
Ending Balance at Sep. 30, 2009 | 494,652 | 429 |
2_Statement Of Shareholders Equ
Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $) | ||
In Millions, except Per Share data | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
Change in net unrealized loss on available-for-sale securities, net of reclassification adjustment and losses from other-than-temporary impairment related to factors other than credit, related taxes | $1,792 | ($1,580) |
Change in net unrealized loss on fair value hedges of available-for-sale securities, related taxes | 58 | 36 |
Losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit, related taxes | (219) | |
Foreign currency translation, related taxes | (107) | (53) |
Change in net unrealized loss on cash flow hedges, related taxes | 5 | (1) |
Change in minimum pension liability, related taxes | 18 | |
Cash dividends, per share | 0.03 | 0.71 |
Common stock awards and options exercised, related taxes | ($52) | $52 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect Deposit Based Operations (USD $) | ||
In Millions | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
Operating Activities: | ||
Net income (loss) | ($2,379) | $1,555 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Non-cash adjustments for depreciation, amortization, accretion and deferred income tax expense | (2,631) | 463 |
Extraordinary loss | 6,096 | 0 |
(Gains) losses related to investment securities, net | (84) | 3 |
Change in trading account assets, net | 364 | (6,206) |
Other, net | (6,024) | 738 |
Net cash used in operating activities | (4,658) | (3,447) |
Investing Activities: | ||
Net (increase) decrease in interest-bearing deposits with banks | 28,375 | (12,851) |
Net decrease in federal funds sold and securities purchased under resale agreements | 56 | 12,575 |
Proceeds from sales of available-for-sale securities | 6,412 | 5,152 |
Proceeds from maturities of available-for-sale securities | 31,199 | 20,125 |
Purchases of available-for-sale securities | (44,178) | (27,773) |
Net (increase) decrease in held-to-maturity securities related to AMLF | 6,111 | (76,707) |
Proceeds from maturities of held-to-maturity securities | 2,739 | 1,178 |
Purchases of held-to-maturity securities | (377) | (890) |
Net (increase) decrease in loans and leases | 106 | (1,785) |
Business acquisitions, net of cash acquired | 0 | 38 |
Purchases of equity investments and other long-term assets | (210) | (175) |
Proceeds from sale of equity investment | 0 | 464 |
Purchases of premises and equipment | (171) | (398) |
Other, net | 367 | 254 |
Net cash (used in) provided by investing activities | 30,429 | (80,793) |
Financing Activities: | ||
Net increase in time deposits | 1,923 | 52,032 |
Net increase (decrease) in all other deposits | (22,380) | 3,043 |
Net increase (decrease) in short-term borrowings related to AMLF | (6,042) | 76,719 |
Net increase (decrease) in short-term borrowings | (1,874) | 2,919 |
Proceeds from issuance of long-term debt, net of issuance costs | 4,435 | 493 |
Payments for long-term debt and obligations under capital leases | (27) | (39) |
Proceeds from public offering of common stock, net of issuance costs | 2,231 | 2,251 |
Repurchase of TARP preferred stock investment | (2,000) | 0 |
Repurchase of TARP common stock warrant | (60) | 0 |
Proceeds from issuance of common stock for stock awards and options exercised | 33 | 11 |
Proceeds from issuances of treasury stock | 0 | 623 |
Payments for cash dividends | (164) | (282) |
Net cash (used in) provided by financing activities | (23,925) | 137,770 |
Net increase | 1,846 | 53,530 |
Cash and due from banks at beginning of year | 3,181 | 4,733 |
Cash and due from banks at end of year | 5,027 | 58,263 |
Supplemental Disclosure: | ||
Non-cash investments in capital leases and other premises and equipment | $126 | $32 |
Note 1. Summary of Significant
Note 1. Summary of Significant Accounting Policies | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 1. Summary of Significant Accounting Policies | Note1.Summary of Significant Accounting Policies The accounting and financial reporting policies of State Street Corporation conform to accounting principles generally accepted in the United States of America, referred to as GAAP. 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 condensed 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, State Street Bank and Trust Company, is referred to as State Street Bank. We report two lines of business: 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; recordkeeping; foreign exchange, brokerage and other trading services; securities finance; deposit and short-term investment facilities; loans and lease financing; investment manager and hedge fund manager operations outsourcing; and performance, risk and compliance analytics to support institutional investors. Investment Management offers a broad array of services for managing financial assets, including investment management and investment research services, primarily for institutional investors worldwide. These services include passive and active U.S. and non-U.S. equity and fixed-income strategies, and other related services, such as securities finance. 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. 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 November6, 2009, the date we filed this Form 10-Q with the SEC. The preparation of consolidated financial statements requires managementtomake estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and these condensed notes. Actual results could differ from those estimates. Consolidated results of operations for the three and nine months ended September30, 2009, are not necessarily indicative of the results that may be expected for the year ending December31, 2009. Certain previously reported amounts have been reclassified to conform to current period classifications as presented in this Form10-Q. The consolidated statement of condition at December31, 2008, has been derived from the audited financial statements at that date, but does not include all footnotes required by GAAP for a complete set of financial statements. The accompanying con |
Note 2. Investment Securities
Note 2. Investment Securities | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 2. Investment Securities | Note2.Investment Securities September30, 2009 December31, 2008 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 $ 11,690 $ 8 $ 10 $ 11,688 $ 11,577 $ 21 $ 19 $ 11,579 Mortgage-backed securities 15,368 138 63 15,443 10,775 129 106 10,798 Asset-backed securities 32,543 806 3,832 29,517 25,049 8 5,633 19,424 Collateralized mortgage obligations 2,310 173 274 2,209 1,837 7 403 1,441 Stateandpoliticalsubdivisions 5,877 313 297 5,893 6,230 105 623 5,712 Other debt securities 5,809 112 24 5,897 4,816 51 144 4,723 Money-market mutual funds 839 839 344 344 Other equity securities 191 2 4 189 158 3 19 142 Total $ 74,627 $ 1,552 $ 4,504 $ 71,675 $ 60,786 $ 324 $ 6,947 $ 54,163 Held to maturity purchased under AMLF: Asset-backed commercial paper $ $ $ $ $ 6,087 $ 13 $ $ 6,100 Held to maturity: U.S. Treasury and federal agencies: Direct obligations $ 500 $ 18 $ 518 $ 501 $ 27 $ 528 Mortgage-backed securities 661 34 695 810 17 827 Asset-backed securities 10,810 452 $ 443 10,819 3,986 38 $ 412 3,612 Collateralized mortgage obligations 9,013 240 536 8,717 9,979 29 1,159 8,849 State and political subdivisions 198 6 204 382 4 386 Other debt securities 85 85 109 109 Total $ 21,267 $ 750 $ 979 $ 21,038 $ 15,767 $ 115 $ 1,571 $ 14,311 Aggregate investment securities carried at $43.89billion and $42.74billion at September30, 2009 and December31, 2008, respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law. Gross pre-tax unrealized losses on investment securities consisted of the following as of September30, 2009 and December31, 2008: Less than 12 continuous months 12 continuous months or longer Total September30, 2009 (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available for sale: |
Note 3. Loans and Lease Financi
Note 3. Loans and Lease Financing | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 3. Loans and Lease Financing | Note3.Loans and Lease Financing At September30, 2009, we held commercial real estate loans with an aggregate carrying value of approximately $592 million that were purchased in 2008 pursuant to indemnified repurchase agreements. The loans, which are primarily collateralized by direct and indirect interests in commercial real estate, were recorded at their then-estimated fair value, based on managements expectation with respect to collection of principal and interest using appropriate market discount rates as of the date of acquisition. Although a portion of these loans is 90 days or more contractually past-due, we do not report them as past-due loans, becauseunder applicable accounting standards, the interest earned on these loans is based on an accretable yield resulting from managements expectation of the cash flows for each loan relative to both the timing and collection of principal and interest as of the reporting date, not contractual payment terms. These cash flow estimates are updated quarterly to reflect changes in managements expectations, which consider market conditions. At September30, 2009, we held structured asset-backed loans with an aggregate carrying value of approximately $2.52 billion that were added in connection with the May 2009 consolidation of the asset-backed commercial paper conduits. These loans, which represent undivided interests in securitized pools of underlying third-party receivables, are held for investment. The allowance for loan losses was $53million at September30, 2009 and $18 million at December31, 2008. During the nine months ended September30, 2009, activity in the allowance for loan losses was composed of an aggregate provision of approximately $114 million, of which $98 million related to the commercial real estate loans described above, offset by net charge-offs of approximately $79 million, of which $69 million related to the commercial real estate loans. At September30, 2009, approximately $5 million of the aforementioned commercial real estate loans had been classified by management as non-performing, as the yield associated with certain of the loans, determined when the loans were acquired, was deemed to be non-accretable. This determination was based on managements expectation of the future collection of principal and interest on the loans. |
Note 4. Goodwill and Other Inta
Note 4. Goodwill and Other Intangible Assets | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 4. Goodwill and Other Intangible Assets | Note4.Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill were as follows for the nine months ended September30, 2009: (In millions) Investment Servicing Investment Management Total Balance at December31, 2008 $ 4,521 $ 6 $ 4,527 Reduction of goodwill previously recorded (16 ) (16 ) Foreign currency translation 43 43 Balance at September30, 2009 $ 4,548 $ 6 $ 4,554 The reduction of goodwill previously recorded was associated with a refund of foreign income taxes received during the first nine months of 2009 that were originally paid as part of a previous acquisition. The gross carrying amount and accumulated amortization of other intangible assets were as follows as of September30, 2009 and December31, 2008: September30, 2009 December31, 2008 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 1,627 $ (383 ) $ 1,244 $ 1,573 $ (277 ) $ 1,296 Core deposits 500 (51 ) 449 500 (34 ) 466 Other 244 (92 ) 152 170 (81 ) 89 Total $ 2,371 $ (526 ) $ 1,845 $ 2,243 $ (392 ) $ 1,851 |
Note 5. Other Assets and Accrue
Note 5. Other Assets and Accrued Expenses and Other Liabilities | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 5. Other Assets and Accrued Expenses and Other Liabilities | Note5.Other Assets and Accrued Expenses and Other Liabilities Other Assets Other assets consisted of the following as of September30, 2009 and December31, 2008: (In millions) September30, 2009 December31, 2008 Unrealized gains on derivative financial instruments $ 5,361 $ 11,943 Collateral deposits 1,175 2,709 Equity investments in joint ventures and other unconsolidated entities 494 412 Deferred tax assets 4,356 Other 3,344 1,946 Total $ 14,730 $ 17,010 Accrued Expenses and Other Liabilities In 2007, in connection with the Investors Financial acquisition, we recorded liabilities for exit and termination costs of approximately $67million. These costs were composed of liabilities for severance associated with Investors Financial employees, abandonment of Investors Financial operating leases, and termination of service and other contracts executed by Investors Financial with third parties. These costs were recorded as part of the purchase price, and resulted in additional goodwill. The liability related to lease abandonments is expected to be reduced over the terms of the related leases, which as of September30, 2009 is approximately eleven years. The following table presents activity related to these liabilities for the first nine months of 2009. (In millions) Severance Lease Abandonments Total Balance at December31, 2008 $ 6 $ 35 $ 41 Payments (1 ) (1 ) Other adjustments 4 4 Balance at September30, 2009 $ 5 $ 39 $ 44 In December 2008, we implemented a plan to reduce our expenses from operations and support our long-term growth. In connection with this plan, we recorded aggregate restructuring charges of $306 million in our consolidated statement of income for 2008. The primary component of the plan was an involuntary reduction of our global workforce, which was substantially completed by the end of the first three months of 2009. Other components of the plan included costs related to lease and software license terminations, restructuring of agreements with technology providers and other costs. The following table presents activity related to these liabilities for the first nine months of 2009. During the nine months ended September30, 2009, approximately 1,570 employees were involuntarily terminated and left State Street. (In millions) Severance Leaseand Asset Write-Offs Other Total Balance at December31, 2008 $ 230 $ 17 $ 3 $ 250 Payments and adjustments 196 7 3 206 Balance at September30, 2009 $ 34 $ 10 $ $ 44 |
Note 6. Short-Term Borrowings
Note 6. Short-Term Borrowings | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 6. Short-Term Borrowings | Note 6.Short-Term Borrowings Our short-term borrowings include securities sold under repurchase agreements; federal funds purchased; and other short-term borrowings, including non-recourse borrowings associated with the Federal Reserves AMLF; borrowings associated with our tax-exempt investment program, more fully discussed in note 9; commercial paper issued by us under our corporate commercial paper program, which is separate from the conduits; commercial paper issued by the conduits; and borrowings under the Federal Reserves term auction facility. As more fully discussed in note 9, effective May15, 2009, we elected to take action that resulted in the consolidation onto our balance sheet, for financial reporting purposes, of all of the assets and liabilities of the conduits. In connection with the consolidation, we added approximately $20.95 billion of aggregate conduit-issued commercial paper to our consolidated balance sheet. |
Note 7. Long-Term Debt
Note 7. Long-Term Debt | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 7. Long-Term Debt | Note7.Long-Term Debt In May 2009, we issued $500 million of 4.30% fixed-rate senior unsecured notes that will mature on May30, 2014, with interest payable semi-annually in arrears on May30 and November30 of each year, beginning on November30, 2009. We cannot redeem the notes prior to maturity. We incurred costs of approximately $1.7 million in connection with the issuance, primarily composed of underwriting, legal and SEC registration fees. We completed the issuance primarily in connection with our intention to repurchase the U.S. Treasurys preferred equity investment received in October 2008 under the TARP Capital Purchase Program. In March 2009, we issued an aggregate of $1.5 billion of 2.15% fixed-rate senior unsecured notes that mature on April30, 2012, with interest payable semi-annually in arrears on April30 and October30 of each year, beginning on April30, 2009. We have the option to redeem the notes before their maturity if we become obligated to pay certain additional amounts because of changes in the laws or regulations of any U.S. taxing authority. These senior notes are guaranteed by the FDIC under its Temporary Liquidity Guarantee Program, or TLGP. If we fail to make a timely payment of any principal or interest, the FDIC is obligated to make such payment following required notification. The FDICs guarantee will expire upon their redemption or on April30, 2012. We incurred costs of approximately $5 million in connection with the issuance, primarily composed of underwriting, legal and SEC registration fees. Upon issuance of the senior notes, we paid the FDIC approximately $47.5 million to utilize the guarantee. The aggregate of the FDIC guarantee fee and other issuance costs will be amortized as a reduction of net interest revenue in our consolidated statement of income over the term of the notes. In March 2009, State Street Bank issued an aggregate of $2.45 billion of fixed- and floating-rate senior notes. $1 billion of 1.85% fixed-rate senior notes mature on March15, 2011, and interest is payable semi-annually in arrears on March15 and September15 of each year, beginning on September15, 2009. $1.45 billion of floating-rate senior notes mature on September15, 2011, and interest is payable quarterly at the three-month LIBOR rate plus 20 basis points on March15,June15,September15 and December15 of each year, beginning on June15, 2009. The interest on the floating-rate senior notes will reset quarterly on each interest payment date each year, beginning on June15, 2009. State Street Bank has the option to redeem the notes before their maturity if it becomes obligated to pay additional interest because of changes in the laws or regulations of any U.S. taxing authority. These senior notes are guaranteed by the FDIC under its TLGP. If State Street Bank fails to make a timely payment of any principal or interest under the senior notes, the FDIC is obligated to make such payment following required notification. The FDICs guarantee will expire upon redemption of the notes or on the notes respective maturity. Upon issuance of the senior notes, State Street Bank paid the FDIC approximately $56 million to utilize the guarantee. Sta |
Note 8. Commitments and Conting
Note 8. Commitments and Contingencies | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 8. Commitments and Contingencies | Note8.Commitments and Contingencies Off-Balance Sheet Commitments and Contingencies In the normal course of business, we hold assets under custody and management in a custodial or fiduciary capacity. Management conducts regular reviews of its responsibilities in this regard and considers the results in preparing the consolidated financial statements. In the opinion of management, no contingent liabilities existed at September30, 2009, that would have had a material adverse effect on State Streets consolidated financial condition or results of operations. On behalf of our customers, we lend their securities to brokers and other institutions. In most circumstances, we indemnify our customers for the fair market value of those securities against a failure of the borrower to return such securities. The aggregate fair value of indemnified securities on loan totaled $357.44 billion at September30, 2009, and $324.59 billion at December31, 2008. We require the borrowers to provide collateral in an amount equal to or in excess of 100% of the fair market value of the securities borrowed. Securities on loan are revalued daily to determine if additional collateral is necessary. 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. We held, as agent, cash and securities with an aggregate fair value of approximately $367.44 billion and $333.07 billion as collateral for indemnified securities on loan at September30, 2009 and December31, 2008, respectively. The collateral held by us as agent is invested on behalf of our customers. In certain cases, the collateral is invested in third-party repurchase agreements, for which we indemnify the customer against loss of the principal invested. We require the counterparty to the repurchase agreement to provide collateral in an amount equal to or in excess of 100% of the amount of the repurchase agreement. In our role as agent, the indemnified repurchase agreements and the related collateral are not recorded in our consolidated statement of condition. Of the collateral of $367.44 billion at September30, 2009 and $333.07 billion at December31, 2008 referenced above, $72.77 billion at September30, 2009 and $68.37 billion at December31, 2008 were invested in indemnified repurchase agreements. We held, as agent, $77.09 billion and $71.87 billion as collateral for indemnified investments in repurchase agreements at September30, 2009 and December31, 2008, respectively. Legal Proceedings Several customers have filed litigation claims against us, some of which are putative class actions purportedly on behalf of customers, including customers which invested in certain of State Street Global Advisors, or SSgAs, active fixed-income strategies. These claims related to investment losses in one or more of SSgAs strategies that included sub-prime investments. In 2007, we established a reserve of approximately $625 million to address legal exposure associated with these active fixed-income strategies managed by SSgA and customer concerns as to whether the execution of these strategies was consistent with the cust |
Note 9. Securitizations and Var
Note 9. Securitizations and Variable Interest Entities | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 9. Securitizations and Variable Interest Entities | Note9.Securitizations and Variable Interest Entities 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 customers. We structure these pools as partnership trusts, and the trusts are recorded in our consolidated statement of condition as investment securities available for sale and other short-term borrowings. We may also provide liquidity and re-marketing services to the trusts. As of September30, 2009 and December31, 2008, we carried investment securities available for sale, composed of securities related to state and political subdivisions, with a fair value of $3.20 billion and $3.05 billion, respectively, and other short-term borrowings of $2.73 billion and $2.86 billion, respectively, in our consolidated statement of condition in connection with these trusts. 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 of existing GAAP, and therefore are recorded in our consolidated financial statements. The trusts had a weighted-average life of approximately 8.2 years at September30, 2009 and 8.3years at December31, 2008. Under separate legal agreements, we provide standby bond purchase agreements to these trusts, which obligate State Street to acquire the certificated interests at par value in the event that the re-marketing agent is unable to place the certificated interests with investors. Our obligations as standby bond purchase agreement provider terminate in the event of the following credit events: payment default, bankruptcy of the issuer or credit enhancement provider, the imposition of taxability, or the downgrade of an asset held by the trust below investment grade. Our commitments to the trusts under these standby bond purchase agreements totaled $2.79billion at September30, 2009, none of which was utilized at period-end. In the event that our obligations under these agreements are triggered, no material impact to our consolidated financial condition or results of operations is expected to occur, because the securities are already recorded at fair value in our consolidated statement of condition. Asset-Backed Commercial Paper Program Effective May15, 2009, we elected to take action that resulted in the consolidation onto our consolidated balance sheet as described in the following paragraph, for financial reporting purposes, of all of the assets and liabilities of the four multi-seller asset-backed commercial paper programs, or conduits, that we sponsored and administered. The consolidation was completed following the voluntary redemption by us, as administrator of the conduits, of the conduits aggregate outstanding subordinated debt, or first-loss notes, of approximately $67 million. We consolidated the conduits only for accounting purposes and did not legally acquire all of their assets and liabilities. |
Note 10. Shareholders' Equity
Note 10. Shareholders' Equity | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 10. Shareholders' Equity | Note10.Shareholders Equity Accumulated other comprehensive income included the following components as of the dates indicated: (In millions) September30, 2009 December31, 2008 Foreign currency translation $ 305 $ 68 Net unrealized loss on hedges of net investments in non-U.S. subsidiaries (14 ) (14 ) Net unrealized loss on available-for-sale securities (2,250 ) (5,205 ) Net unrealized loss on fair value hedges of available-for-sale securities (145 ) (242 ) Losses from other-than-temporary impairment on available-for-sale securities related to factors other than credit (89 ) Losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit (362 ) Minimum pension liability (200 ) (229 ) Net unrealized loss on cash flow hedges (21 ) (28 ) Total $ (2,776 ) $ (5,650 ) The net after-tax unrealized loss on available-for-sale securities of $2.25 billion and $5.21 billion as of September30, 2009 and December31, 2008, respectively, included $733 million and $1.39 billion, respectively, of net after-tax unrealized losses related to securities reclassified from securities available for sale to securities held to maturity. The decrease compared to December31, 2008 resulted from amortization and from the recognition of losses from other-than-temporary impairment of certain of the securities. For the nine months ended September30, 2009, we realized net pre-tax gains of $260 million from sales of available-for-sale securities. Unrealized pre-tax gains of $60 million were included in other comprehensive income at December31, 2008, net of deferred taxes of $24 million, related to these sales. For the nine months ended September30, 2008, we realized net pre-tax gains of $41 million from sales of available-for-sale securities. Unrealized pre-tax gains of $31 million were included in other comprehensive income at December31, 2007, net of deferred taxes of $12 million, related to these sales. Total comprehensive income for the nine months ended September30, 2009 was $495 million, composed of $2,379million of net loss net of $2,874million of other comprehensive income, which represents the overall change in accumulated other comprehensive income presented in the above table. Total comprehensive loss for the nine months ended September30, 2008 was $1,016 million, composed of $1,555 million of net income less $2,571 million of other comprehensive loss. Total comprehensive income (loss) for the three months ended September30, 2009 and 2008 was $1,379 million and $(953) million, respectively. In May 2009, we completed a public offering of approximately 58.97million shares of our common stock. The offering price was $39 per share, and aggregate proceeds from the offering, net of underwriting commissions and related offering costs, totaled approximately $2.23 billion. Underwriting commissions totaled approximately $69 million. We completed the offering pursuant to our current universal shelf registration statement filed |
Note 11. Fair Value
Note 11. Fair Value | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 11. Fair Value | Note 11.Fair Value Fair Value Measurements: We carry certain of our financial assets and liabilities at fair value in our consolidated financial statements on a recurring basis, including trading account assets, investment securities available for sale and various types of derivative instruments. Changes in the fair value of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of other comprehensive income within shareholders equity in our consolidated statement of condition. We estimate fair value for the above-described financial assets and liabilities in accordance with accounting standards which govern the measurement of the fair value of financial instruments, including the provisions of a new accounting standard, the latter of which we adopted effective April1, 2009. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of these standards. We have categorized the financial assets and liabilities that we carry at fair value in our consolidated statement of condition based upon the standards three-level valuation hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level1) and the lowest priority to valuation methods using significant unobservable inputs (level3). 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. Managements 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 are described below: Level1. Financial assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market. Examples of level1 financial instruments include active exchange-traded equity securities and certain U.S. government securities. We categorized approximately $10.56 billion of our financial assets, substantially composed of U.S. government securities, and $5 million of our financial liabilities in level 1 at September30, 2009. Level2. 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. Level2 inputs include the following: a) Quoted prices for similar assets or liabilities in active markets; b) Quoted prices for identical or similar assets or liabilities in non-active markets; c) Pricing models whose inputs are observable for substantially the full term of the asset or liability; and d) 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 level2 financial assets |
Note 12. Derivative Financial I
Note 12. Derivative Financial Instruments | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 12. Derivative Financial Instruments | Note 12.Derivative Financial Instruments As part of our trading and asset and liability management activities, we enter into a variety of derivative financial instruments, primarily interest-rate and foreign exchange contracts, to support our customers needs, to conduct our trading activities and to manage our interest-rate and foreign currency risk. A derivative financial instrument is a contract which has one or more underlying and one or more notional amounts, 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. 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, either at a fixed or variable rate, based upon 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 cross-currency swap agreements and foreign exchange forward and spot contracts. 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 as the risk of adverse financial impact due to fluctuations in interest rates, foreign exchange rates and other market-driven factors and prices. We use a variety of risk management tools and methodologies to measure, monitor and manage market risk associated with our trading activities. One such risk-management measure is value-at-risk, or 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 estimate VaR daily. We have adopted standards for estimating VaR, and we maintain capital for market risk in accordance with applicable regulatory guidelines. VaR is more fully discussed in our 2008 Form 10-K. Derivative financial instruments are also subject to credit and counterparty risk, which is defined as the risk of financial loss if a borrower or counterparty is either unable or unwilling to repay borrowings or settle a transaction in accordance with the underlying contractual terms. We manage credit and counterparty risk by performing credit reviews, maintaining individual counterparty limits, entering into netting arrangements and requiring the receipt of collateral. Collateral requirements are determined after a comprehensive review of the credit quality of each counte |
Note 13. Net Interest Revenue
Note 13. Net Interest Revenue | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 13. Net Interest Revenue | Note 13.Net Interest Revenue ThreeMonthsEnded September30, NineMonthsEnded September30, (In millions) 2009 2008 2009 2008 Interest revenue: Deposits with banks $ 28 $ 180 $ 133 $ 571 Investment securities: U.S. Treasury and federal agencies 182 213 616 731 State and political subdivisions 54 62 170 182 Other investments 562 454 1,256 1,382 Securities purchased under resale agreements and federal funds sold 6 78 20 320 Loans and leases 65 (25 ) 168 172 Trading account assets 20 19 49 Interest revenue associated with AMLF 45 25 45 Other interest-earning assets 1 2 Total interest revenue 898 1,027 2,409 3,452 Interest expense: Deposits 36 320 155 1,112 Short-term borrowings 57 89 144 323 Long-term debt 82 56 225 173 Interest expense associated with AMLF 37 18 37 Total interest expense 175 502 542 1,645 Net interest revenue $ 723 $ 525 $ 1,867 $ 1,807 |
Note 14. Employee Benefits
Note 14. Employee Benefits | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 14. Employee Benefits | Note 14.Employee Benefits The components of net periodic benefit cost were as follows for the periods indicated: Three Months Ended September30, Nine Months Ended September30, Pension Benefits Other Benefits Pension Benefits Other Benefits (In millions) 2009 2008 2009 2008 2009 2008 2009 2008 Service cost $ 4 $ 6 $ 1 $ 1 $ 12 $ 17 $ 3 $ 3 Interest cost 14 15 1 2 42 44 5 4 Expected return on plan assets (14 ) (15 ) (42 ) (45 ) Amortization of net loss 2 3 1 6 9 1 Settlement loss recognized 1 2 Net periodic benefit cost $ 7 $ 9 $ 3 $ 3 $ 20 $ 25 $ 9 $ 7 We made aggregate contributions of approximately $82million to the tax-qualified U.S. and non-U.S. defined benefit pension plan, supplemental employee retirement and post-retirement plans during the first nine months of 2009, which included a contribution of $35 million to the U.S. defined benefit pension plan made during the third quarter of 2009. |
Note 15. Other Expenses
Note 15. Other Expenses | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 15. Other Expenses | Note15.Other Expenses Other expenses consisted of the following for the periods indicated: ThreeMonthsEnded September30, NineMonthsEnded September30, (In millions) 2009 2008 2009 2008 FDIC assessments and other insurance $ 18 $ 8 $ 79 $ 22 Other 92 314 220 603 Total other operating expenses $ 110 $ 322 $ 299 $ 625 |
Note 16. Income Taxes
Note 16. Income Taxes | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 16. Income Taxes | Note 16.Income Taxes We recorded income tax expense of $160 million for the three months ended September30, 2009, compared to $369 million for the three months ended September30, 2008. Income tax expense for the nine months ended September30, 2009 was $540 million compared to $925 million for the nine months ended September30, 2008. The effective tax rate for the third quarter of 2009 was 32.8%, down from 43.7% for the third quarter of 2008, and for the first nine months of 2009 was 29.3% compared to 37.3% for the first nine months of 2008. Income tax expense for the third quarter of 2008 included effects associated with SILO lease transactions, the gain from the sale of our joint venture interest in CitiStreet and the estimated net exposure related to an indemnification obligation associated with collateralized repurchase agreements. Consistent with our business strategy, our intent to reinvest the earnings in certain of our non-U.S. subsidiaries allowed us to reduce taxes accrued with respect to 2009 earnings, as well as certain taxes accrued in prior periods. We are presently under audit by a number of tax authorities. Unrecognized tax benefits were approximately $351 million at September30, 2009. It is reasonably possible that unrecognized tax benefits could change significantly over the next 12 months. We do not expect that any change would have a material adverse effect on our effective tax rate. |
Note 17. Earnings Per Share
Note 17. Earnings Per Share | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 17. Earnings Per Share | Note17.Earnings Per Share The following table presents the computation of basic and diluted earnings per common share for the periods indicated: Three Months Ended September30, Nine Months Ended September30, (Dollars in millions, except per share amounts) 2009 2008 2009 2008 Net income before extraordinary loss $ 327 $ 477 $ 1,305 $ 1,555 Less: Prepayment of preferred stock discount (106 ) Preferred stock dividends (46 ) Accretion of preferred stock discount (11 ) Net income before extraordinary loss available to common shareholders 327 477 1,142 1,555 Payments for cash dividends(1) (5 ) (103 ) (113 ) (285 ) Undistributed earnings $ 322 $ 374 $ 1,029 $ 1,270 Average shares outstanding (in thousands): Basic average shares 493,453 430,872 462,900 407,186 Average participating securities 824 701 770 719 Adjusted basic average shares 494,277 431,573 463,670 407,905 Basic average shares 493,453 430,872 462,900 407,186 Effect of dilutive securities: Stock options and stock awards 4,837 4,158 3,334 4,008 Equity-related financial instruments 10 Diluted average shares 498,290 435,030 466,234 411,204 Anti-dilutive securities(2) 6,388 2,012 11,418 921 Earnings per Share: Basic: Distributed $ .01 $ .24 $ .26 $ .70 Undistributed(3) .65 .86 2.22 3.11 Basic $ .66 $ 1.10 $ 2.48 $ 3.81 Diluted $ .66 $ 1.09 $ 2.45 $ 3.78 (1) Represents payments during the period to common shareholders and to unvested restricted and deferred director stock holders. (2) Represents stock options outstanding but not included in the computation of diluted average shares because the exercise prices of the instruments were greater than the average fair value of our common stock during the periods. (3) Represents undistributed earnings divided by adjusted basic average shares. |
Note 18. Line of Business Infor
Note 18. Line of Business Information | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Note 18. Line of Business Information | Note18.Line of Business Information We report two lines of business: Investment Servicing and Investment Management. Given our services and management organization, 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. Information about revenue, expense and capital allocation methodologies is in note24 to the consolidated financial statements included in our 2008 Form10-K. The following is a summary of our line of business results. The amounts in the Divestitures columns for 2008 represent the operating results of our joint venture interest in CitiStreet prior to its sale in July 2008. The amounts presented in the Other columns for 2009 represent merger and integration costs recorded in connection with our 2007 acquisition of Investors Financial, and for the nine months ended September30, 2009, net interest revenue earned in connection with our participation in the Federal Reserve Bank of Bostons AMLF and the provision for loan losses associated with commercial real estate loans purchased in 2008. The 2008 amounts represents the net interest revenue associated with our participation in the AMLF; the gain on the sale of our joint venture interest in CitiStreet; the provision related to our estimated net exposure for customer indemnification obligations associated with collateralized repurchase agreements; and merger and acquisition costs recorded in connection with the acquisition of Investors Financial. The amounts in the Divestitures and Other columns were not allocated to State Streets business lines. For the Quarters Ended September30, Investment Servicing Investment Management Divestitures Other Total (Dollars in millions, except where otherwise noted) 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 Fee revenue: Servicing fees $ 833 $ 966 $ 833 $ 966 Management fees $ 219 $ 261 219 261 Trading services 269 363 269 363 Securities finance 67 180 38 66 105 246 Processing fees and other 18 51 27 12 45 63 Total fee revenue 1,187 1,560 284 339 1,471 1,899 Net interest revenue 704 503 19 14 $ 8 723 525 Gains (Losses) related to investment securities, net 42 (3 ) 42 (3 ) Gain on sale of CitiStreet interest, net of exit and other associated costs 350 350 Total revenue 1,933 2,060 303 353 358 2,236 2, |
Document Information
Document Information | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2009-09-30 |
Entity Information
Entity Information (USD $) | ||
9 Months Ended
Sep. 30, 2009 | Oct. 30, 2009
| |
Entity [Text Block] | ||
Trading Symbol | STT | |
Entity Registrant Name | STATE STREET Corp | |
Entity Central Index Key | 0000093751 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 494,665,224 |