State Street (STT) 10-K 22 Feb 10 2009 FY Annual report Financial data

Statement Of Income Interest Ba

Statement Of Income Interest Based Revenue (USD $)
In Millions, except Share data in Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Fee revenue:
Servicing fees	$3,276	$3,745	$3,388
Management fees	824	1,028	1,141
Trading services	1,094	1,467	1,152
Securities finance	570	1,230	681
Processing fees and other	171	277	271
Total fee revenue	5,935	7,747	6,633
Net interest revenue:
Interest revenue	3,286	4,879	5,212
Interest expense	722	2,229	3,482
Net interest revenue	2,564	2,650	1,730
Gains (Losses) related to investment securities, net:
Net gains from sales of available-for-sale securities	368	68	7
Losses from other-than-temporary impairment	(1,155)	(122)	(34)
Losses not related to credit	928	0	0
Gains (Losses) related to investment securities, net	141	(54)	(27)
Gain on sale of CitiStreet interest, net of exit and other associated costs	0	350	0
Total revenue	8,640	10,693	8,336
Provision for loan losses	149	0	0
Expenses:
Salaries and employee benefits	3,037	3,842	3,256
Information systems and communications	656	633	546
Transaction processing services	583	644	619
Occupancy	475	465	408
Provision for legal exposure	250	0	600
Provision for investment account infusion	0	450	0
Restructuring charges	0	306	0
Merger and integration costs	49	115	198
Professional services	264	360	236
Amortization of other intangible assets	136	144	92
Other	516	892	478
Total expenses	5,966	7,851	6,433
Income before income tax expense and extraordinary loss	2,525	2,842	1,903
Income tax expense	722	1,031	642
Income before extraordinary loss	1,803	1,811	1,261
Extraordinary loss, net of taxes	(3,684)	0	0
Net income (loss)	(1,881)	1,811	1,261
Net income before extraordinary loss available to common shareholders	1,640	1,789	1,261
Net income (loss) available to common shareholders	($2,044)	$1,789	$1,261
Earnings per common share before extraordinary loss:
Basic	3.5	4.32	3.49
Diluted	3.46	4.3	3.45
Earnings (Loss) per common share:
Basic	-4.32	4.32	3.49
Diluted	-4.31	4.3	3.45
Average common shares outstanding (in thousands):
Basic	470,602	413,182	360,675
Diluted	474,003	416,100	365,488

Statement Of Financial Position

Statement Of Financial Position Unclassified - Deposit Based Operations (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Assets
Cash and due from banks	$2,641	$3,181
Interest-bearing deposits with banks	26,632	55,733
Securities purchased under resale agreements	2,387	1,635
Trading account assets	148	815
Investment securities available for sale	72,699	54,163
Investment securities held to maturity purchased under money market liquidity facility (fair value of $6,100 in 2008)	0	6,087
Investment securities held to maturity (fair value of $20,928 and $14,311)	20,877	15,767
Loans and leases (less allowance for losses of $79 and $18)	10,729	9,113
Premises and equipment (net of accumulated depreciation of $3,046 and $2,758)	1,953	2,011
Accrued income receivable	1,497	1,738
Goodwill	4,550	4,527
Other intangible assets	1,810	1,851
Other assets	12,023	17,010
Total assets	157,946	173,631
Deposits:
Noninterest-bearing	11,969	32,785
Interest-bearing-U.S.	5,956	4,558
Interest-bearing-Non-U.S.	72,137	74,882
Total deposits	90,062	112,225
Securities sold under repurchase agreements	10,542	11,154
Federal funds purchased	4,532	1,082
Short-term borrowings under money market liquidity facility	0	6,042
Other short-term borrowings	20,200	11,555
Accrued expenses and other liabilities	9,281	14,380
Long-term debt	8,838	4,419
Total liabilities	143,455	160,857
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; 495,365,571 and 431,976,032 shares issued	495	432
Surplus	9,180	6,992
Retained earnings	7,071	9,135
Accumulated other comprehensive loss	(2,238)	(5,650)
Treasury stock, at cost (431,832 and 418,354 shares)	(17)	(18)
Total shareholders' equity	14,491	12,774
Total liabilities and shareholders' equity	$157,946	$173,631

1_Statement Of Financial Positi

Statement Of Financial Position Unclassified - Deposit Based Operations (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 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	20,928	14,311
Loans and leases, allowance for losses	79	18
Premises and equipment, accumulated depreciation	$3,046	$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	495,365,571	431,976,032
Treasury stock, shares	431,832	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	Surplus	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	TREASURY STOCK	Total
Beginning Balance at Dec. 31, 2006	$0	$337	$399	$7,030	($224)	($290)	$7,252
Beginning Balance (in shares) at Dec. 31, 2006		337,126				4,688
Adjustment for effect of applying provisions of FASB Staff Position No. FAS 13-2				(226)			(226)
Adjusted balance (in shares)		337,126				4,688
Adjusted balance	0	337	399	6,804	(224)	(290)	7,026
Comprehensive income:
Net income (loss)				1,261			1,261
Change in net unrealized gains/losses 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 $2,158 in 2009, $(2,866) in 2008 and $(276) in 2007					(451)		(451)
Change in net unrealized gains/losses on fair value hedges of available -for-sale securities, net of related taxes of $82 in 2009, $(116) in 2008 and $(37) in 2007					(55)		(55)
Foreign currency translation, net of related taxes of $(96) in 2009, $(91) in 2008 and $62 in 2007					134		134
Change in net unrealized gains/losses on cash flow hedges, net of related taxes of $7 in 2009, $(10) in 2008 and $(7)					(11)		(11)
Change in unrealized gains/losses on hedges of net investments in non-U.S. subsidiaries, net of related taxes					(8)		(8)
Change in minimum pension liability, net of related taxes of $23 in 2009, $(48) in 2008 and $28 in 2007					40		40
Total comprehensive income				1,261	(351)		910
Common stock-$.04 per share in 2009, $.95 in 2008 and $.88 in 2007				(320)			(320)
Common stock acquired ($75 in 2008 and $75 in 2007 per share) (in shares)						13,369
Common stock acquired ($75 in 2008 and $75 in 2007 per share)						(1,002)	(1,002)
Common stock awards and common stock options exercised, including tax benefit(expense) of $(52) in 2009, $52 in 2008 and $52 in 2007 (in shares)		401				(5,975)
Common stock awards and common stock options exercised, including tax benefit(expense) of $(52) in 2009, $52 in 2008 and $52 in 2007			65			393	458
Common stock issued in connection with acquisition (in shares)		60,839
Common stock issued in connection with acquisition		61	4,166				4,227
Ending Balance (in shares) at Dec. 31, 2007		398,366				12,082
Ending Balance at Dec. 31, 2007	0	398	4,630	7,745	(575)	(899)	11,299
Comprehensive income:
Net income (loss)				1,811			1,811
Change in net unrealized gains/losses 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 $2,158 in 2009, $(2,866) in 2008 and $(276) in 2007					(4,527)		(4,527)
Change in net unrealized gains/losses on fair value hedges of available -for-sale securities, net of related taxes of $82 in 2009, $(116) in 2008 and $(37) in 2007					(187)		(187)
Foreign currency translation, net of related taxes of $(96) in 2009, $(91) in 2008 and $62 in 2007					(263)		(263)
Change in net unrealized gains/losses on cash flow hedges, net of related taxes of $7 in 2009, $(10) in 2008 and $(7)					(16)		(16)
Change in unrealized gains/losses on hedges of net investments in non-U.S. subsidiaries, net of related taxes					1		1
Change in minimum pension liability, net of related taxes of $23 in 2009, $(48) in 2008 and $28 in 2007					(83)		(83)
Total comprehensive income				1,811	(5,075)		(3,264)
Preferred stock and common stock warrant issued under TARP	1,879		121				2,000
Common stock-$.04 per share in 2009, $.95 in 2008 and $.88 in 2007				(400)			(400)
Preferred stock				(18)			(18)
Accretion of preferred stock discount	4			(4)			0
Common stock acquired ($75 in 2008 and $75 in 2007 per share) (in shares)						552
Common stock issued in public offering (in shares)		33,156				(7,391)
Common stock issued in public offering		34	2,181			538	2,753
Contract payments to State Street Capital Trust III			(36)				(36)
Common stock awards and common stock options exercised, including tax benefit(expense) of $(52) in 2009, $52 in 2008 and $52 in 2007 (in shares)		454				(4,825)
Common stock awards and common stock options exercised, including tax benefit(expense) of $(52) in 2009, $52 in 2008 and $52 in 2007			96	1		343	440
Ending Balance (in shares) at Dec. 31, 2008		431,976				418
Ending Balance at Dec. 31, 2008	1,883	432	6,992	9,135	(5,650)	(18)	12,774
Comprehensive income:
Net income (loss)				(1,881)			(1,881)
Change in net unrealized gains/losses 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 $2,158 in 2009, $(2,866) in 2008 and $(276) in 2007					3,410		3,410
Change in net unrealized gains/losses on fair value hedges of available -for-sale securities, net of related taxes of $82 in 2009, $(116) in 2008 and $(37) in 2007					129		129
Losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $(237)					(387)		(387)
Foreign currency translation, net of related taxes of $(96) in 2009, $(91) in 2008 and $62 in 2007					213		213
Change in net unrealized gains/losses on cash flow hedges, net of related taxes of $7 in 2009, $(10) in 2008 and $(7)					10		10
Change in minimum pension liability, net of related taxes of $23 in 2009, $(48) in 2008 and $28 in 2007					37		37
Total comprehensive income				(1,881)	3,412		1,531
Common stock-$.04 per share in 2009, $.95 in 2008 and $.88 in 2007				(20)			(20)
Preferred stock				(46)			(46)
Accretion of preferred stock discount	11			(11)			0
Prepayment of preferred stock discount	106			(106)			0
Common stock issued in public offering (in shares)		58,974
Common stock issued in public offering		59	2,172				2,231
Redemption of TARP preferred stock investment	(2,000)						(2,000)
Repurchase of TARP common stock warrant			(60)				(60)
Common stock awards and common stock options exercised, including tax benefit(expense) of $(52) in 2009, $52 in 2008 and $52 in 2007 (in shares)		4,416
Common stock awards and common stock options exercised, including tax benefit(expense) of $(52) in 2009, $52 in 2008 and $52 in 2007		4	76				80
Other (in shares)						14
Other						1	1
Ending Balance (in shares) at Dec. 31, 2009		495,366				432
Ending Balance at Dec. 31, 2009	$0	$495	$9,180	$7,071	($2,238)	($17)	$14,491

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Change in net unrealized gains/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	$2,158	($2,866)	($276)
Change in net unrealized gains/losses on fair value hedges of available-for-sale securities, related taxes	82	(116)	(37)
Losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit, related taxes	(237)
Foreign currency translation, related taxes	(96)	(91)	62
Change in unrealized gains/ losses on cash flow hedges, related taxes	7	(10)	(7)
Change in unrealized gains/ losses on hedges of net investments in non-U. S. subsidiaries, related taxes			(4)
Change in minimum pension liability, related taxes	23	(48)	28
Cash dividends, per share	0.04	0.95	0.88
Common stock acquired, per share		$75	$75
Common stock awards and common stock options exercised, tax benefit	($52)	$52	$52

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect Deposit Based Operations (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating Activities:
Net income (loss)	($1,881)	$1,811	$1,261
Adjustments to reconcile net income to net cash provided by operating activities:
Non-cash adjustments for depreciation, amortization, accretion and deferred income tax expense (benefit)	(2,284)	(282)	130
Extraordinary loss	6,096	0	0
(Gains) Losses related to investment securities, net	(141)	54	27
Change in trading account assets, net	366	(689)	195
Other, net	(6,425)	(2,850)	1,326
Net cash (used in) provided by operating activities	(4,269)	(1,956)	2,939
Investing Activities:
Net (increase) decrease in interest-bearing deposits with banks	29,222	(49,462)	(799)
Net (increase) decrease in federal funds sold and securities purchased under resale agreements	(752)	22,038	(2,832)
Proceeds from sales of available-for-sale securities	8,274	5,408	4,731
Proceeds from maturities of available-for-sale securities	43,995	32,291	21,750
Purchases of available-for-sale securities	(58,780)	(41,044)	(27,578)
Net decrease (increase) in securities related to AMLF	6,111	(5,818)	0
Proceeds from maturities of held-to-maturity securities	4,498	1,766	859
Purchases of held-to-maturity securities	(1,600)	(1,062)	(539)
Net (increase) decrease in loans	800	6,532	(6,226)
Proceeds from sale of joint venture investment	0	464	0
Business acquisitions, net of cash acquired	0	(38)	(647)
Purchases of equity investments and other long-term assets	(241)	(242)	(192)
Purchases of premises and equipment	(325)	(681)	(476)
Other, net	430	278	95
Net cash (used in) provided by investing activities	31,632	(29,570)	(11,854)
Financing Activities:
Net increase (decrease) in time deposits	1,267	(13,988)	4,158
Net increase (decrease) in all other deposits	(23,408)	30,416	14,617
Net increase (decrease) in short-term borrowings related to AMLF	(6,042)	6,139	0
Net increase (decrease) in short-term borrowings	(4,163)	3,163	(7,794)
Proceeds from issuance of long-term debt, net of issuance costs	4,435	493	1,488
Payments for long-term debt and obligations under capital leases	(29)	(44)	(533)
Proceeds from public offering of common stock, net of issuance costs	2,231	2,251	0
Proceeds from issuance of TARP preferred stock	0	1,879	0
Proceeds from issuance of warrant to purchase common stock	0	121	0
Purchases of common stock	0	0	(1,002)
Redemption of TARP preferred stock investment	(2,000)	0	0
Repurchase of TARP common stock warrant	(60)	0	0
Proceeds from issuance of common stock for stock awards and options exercised	34	12	0
Proceeds from issuances of treasury stock	0	623	185
Payments for cash dividends	(168)	(399)	(301)
Net cash (used in) provided by financing activities	(27,903)	30,666	10,818
Net increase (decrease)	(540)	(860)	1,903
Cash and due from banks at beginning of year	3,181	4,041	2,138
Cash and due from banks at end of year	2,641	3,181	4,041
Supplemental disclosure:
Interest paid	722	2,302	3,403
Income taxes paid	884	1,118	593
Non-cash acquisitions of investment securities	14,111	0	0
Non-cash acquisitions of loans	2,510	0	0
Non-cash investments in premises and equipment and capital leases	126	48	194
Non-cash additions of short-term borrowings	$20,919	$0	$0

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
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. 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, State Street Bank and Trust Company, is referred to as State Street Bank. We have 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 alternative investment 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 preparation of consolidated financial statements requires management to make estimates and assumptions in the application of certain of our accounting policies that materially affect the reported amounts of assets, liabilities, revenue and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. 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 February22, 2010, the date we filed this Form 10-K with the SEC. The following is a summary of our significant accounting policies. Basis of Presentation: Our consolidated financial statements include the accounts of the parent company and its majority- and wholly-owned subsidiaries, including State Street Bank, as well as the four asset-backed commercial paper conduits which we consolidated in May 2009 and the partnership trusts utilized in connection with our tax-exempt investment program. 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 hold a majority of the voting rights or exercise control. Investments in unconsolidated subsidiaries, recorded in other

Divestitures

Divestitures
	12 Months Ended Dec. 31, 2009 USD / shares
Divestitures	Note2.Divestitures In July2008, we completed the sale of our 50% joint venture interest in CitiStreet, a benefits servicing business that provides retirement plan recordkeeping and administrative services and at that date had approximately $220 billion of assets under administration on behalf of corporate and government entities, employee unions and other customers. The premium received in connection with the sale was $407 million, and we recorded a resulting pre-tax gain of $350 million in our consolidated statement of income, net of exit and other associated costs incurred in connection with the sale. These costs totaled $57 million, and consisted of incentive compensation of $30 million, professional fees of $10 million, and other related costs of $17 million.

Investment Securities

Investment Securities
	12 Months Ended Dec. 31, 2009 USD / shares
Investment Securities	Note3.Investment Securities As of December 31, (In millions) 2009 2008 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Available for sale: U.S. Treasury and federal agencies: Direct obligations $ 11,164 $ 6 $ 8 $ 11,162 $ 11,577 $ 21 $ 19 $ 11,579 Mortgage-backed securities 14,895 94 53 14,936 10,775 129 106 10,798 Asset-backed securities: Credit cards 6,515 192 100 6,607 4,045 3 958 3,090 Student loans(1) 12,652 128 852 11,928 9,785 2 1,927 7,860 Sub-prime 5,054 12 1,869 3,197 5,834 1 1,976 3,859 Other 2,581 400 184 2,797 1,817 1 354 1,464 Total asset-backed 26,802 732 3,005 24,529 21,481 7 5,215 16,273 Collateralized mortgage obligations 2,477 203 271 2,409 1,837 7 403 1,441 State and political subdivisions 5,954 221 238 5,937 6,230 105 623 5,712 Non-U.S. debt securities 10,210 283 182 10,311 6,123 28 437 5,714 Other debt securities 2,161 94 21 2,234 2,261 24 125 2,160 Money-market mutual funds 1,110 1,110 344 344 Non-U.S. equity securities 31 4 35 131 2 10 123 Other equity securities 39 3 36 27 1 9 19 Total $ 74,843 $ 1,637 $ 3,781 $ 72,699 $ 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 $ 13 $ 513 $ 501 $ 27 $ 528 Mortgage-backed securities 620 33 653 810 17 827 Asset-backed securities: Credit cards 20 $ 2 18 Other 447 68 379 321 $ 54 267 Total asset-backed 467 70 397 321 54 267 Collateralized mortgage obligations 8,262 249 504 8,007 9,979 29 1,159 8,849 State and political subdivisions 206 6 212 382 4 386

Loans and Lease Financing

Loans and Lease Financing
	12 Months Ended Dec. 31, 2009 USD / shares
Loans and Lease Financing	Note4.Loans and Lease Financing (In millions) 2009 2008 Commercial and financial: U.S. $ 6,239 $ 6,397 Non-U.S. 471 890 Purchased receivables: U.S. 786 Non-U.S. 1,596 Lease financing: U.S. 408 407 Non-U.S. 1,308 1,437 Total loans 10,808 9,131 Less allowance for loan losses (79 ) (18 ) Net loans $ 10,729 $ 9,113 U.S. commercial and financial loans at December31, 2009 and 2008 included approximately $600 million and $800 million, respectively, of commercial real estate loans acquired in 2008 pursuant to indemnified repurchase agreements with an affiliate of Lehman. The loans, which are primarily collateralized by direct and indirect interests in commercial real estate, were recorded at their then-current fair value, based on managements expectation with respect to future collection of principal and interest using appropriate market discount rates as of the date of acquisition. Aggregate short-duration advances related to securities settlement activities of our customers included in commercial and financial loans in the table above were $2.07 billion and $4.64billion at December31, 2009 and 2008, respectively. Although a portion of the aforementioned commercial real estate loans is 90 days or more contractually past-due, we do not report them as past-due loans, becauseunder current accounting standards, the interest earned on these loans is based on an accretable yield resulting from managements expectation of the future cash flows for each loan relative to both the timing and collection of principal and interest as of the reporting date, not the loans contractual payment terms. These cash flow estimates are updated quarterly to reflect changes in managements expectations, which consider market conditions. At December31, 2009, approximately $2.3 million of these commercial real estate loans had been placed by management on non-accrual status, 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. At December31, 2009, we held structured asset-backed loans, presented in the preceding table as purchased receivables, that were added in connection with the May 2009 conduit consolidation. These loans represent undivided interests in securitized pools of underlying third-party receivables. The components of the net investment in leveraged leases were as follows as of December31: (In millions) 2009 2008 Net rental income receivable $ 2,677 $ 2,929 Estimated residual values 129 156 Unearned income (1,090 ) (1,241 ) Investment in leveraged leases 1,716 1,844 Less related deferred income taxes (505 ) (535 ) Net investment in leveraged leases $ 1,211 $ 1,309

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Other Intangible Assets	Note5.Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill were as follows for the years ended December31: (In millions) Investment Servicing Investment Management Total Balance at December31, 2007 $ 4,559 $ 8 $ 4,567 Acquisitions 59 59 Reduction of goodwill previously recorded (28 ) (28 ) Impairment (27 ) (27 ) Foreign currency translation and other adjustments, net (42 ) (2 ) (44 ) Balance at December31, 2008 $ 4,521 $ 6 $ 4,527 Reduction of goodwill previously recorded (16 ) (16 ) Foreign currency translation 39 39 Balance at December31, 2009 $ 4,544 $ 6 $ 4,550 The 2008 reduction of goodwill previously recorded resulted primarily from changes in purchase accounting associated with the acquisitions of Investors Financial and Currenex. The 2009 reduction of goodwill previously recorded was associated with a refund of foreign income taxes during the year that was originally paid in connection with a previous acquisition. The gross carrying amount and accumulated amortization of other intangible assets were as follows as of December31: 2009 2008 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 1,628 $ (409 ) $ 1,219 $ 1,573 $ (277 ) $ 1,296 Core deposits 500 (57 ) 443 500 (34 ) 466 Other 243 (95 ) 148 170 (81 ) 89 Total $ 2,371 $ (561 ) $ 1,810 $ 2,243 $ (392 ) $ 1,851 Amortization expense related to other intangible assets was $136million, $144million and $92million for the years ended December31, 2009, 2008 and 2007, respectively. Expected amortization expense for other intangible assets held at December31, 2009 is $138million for 2010, $135 million for 2011, $134million for 2012 and $132million for each of 2013 and 2014.

Other Assets and Other Liabilit

Other Assets and Other Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Other Assets and Other Liabilities	Note6.Other Assets and Other Liabilities Other Assets: Other assets consisted of the following as of December31: (In millions) 2009 2008 Unrealized gains on derivative financial instruments $ 4,511 $ 11,943 Collateral deposits 1,351 2,709 Equity investments in joint ventures and other unconsolidated entities 492 412 Deferred tax assets 3,973 Other 1,696 1,946 Total $ 12,023 $ 17,010 Accrued Expenses and Other Liabilities: 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 2008 consolidated statement of income. The primary component of the plan was an involuntary reduction of our global workforce, which was substantially completed by the end of the first quarter 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 year ended December 31, 2009, during which time approximately 1,590 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 write-offs (214 ) (14 ) (3 ) (231 ) Balance at December31, 2009 $ 16 $ 3 $ $ 19 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 the lease abandonments is expected to be reduced over the terms of the related leases, which as of December31, 2009 is approximately eleven years. The following table presents activity related to these liabilities for the year ended December31, 2009. (In millions) Severance Lease Abandonments Total Balance at December31, 2008 $ 6 $ 35 $ 41 Payments and other adjustments (4 ) 1 (3 ) Balance at December31, 2009 $ 2 $ 36 $ 38

Deposits

Deposits
	12 Months Ended Dec. 31, 2009 USD / shares
Deposits	Note 7.Deposits At December31, 2009 and 2008, we had $8.17billion and $6.91billion, respectively, of time deposits outstanding. Non-U.S. time deposits were $2.39billion and $4.80billion at December31, 2009 and 2008, respectively. Substantially all U.S. and non-U.S. time deposits were in amounts of $100,000 or more. The scheduled maturities of aggregate U.S. and non-U.S. time deposits were as follows at December31, 2009: (In millions) 2010 $ 8,132 2011 43 Total $ 8,175 At December31, 2009, the scheduled maturities of U.S. time deposits were as follows: (In millions) 3months or less $ 4,566 4months to a year 1,177 Over one year 43 Total $ 5,786

Short-Term Borrowings

Short-Term Borrowings
	12 Months Ended Dec. 31, 2009 USD / shares
Short-Term Borrowings	Note8.Short-Term Borrowings Our short-term borrowings include securities sold under repurchase agreements, federal funds purchased and other short-term borrowings, including borrowings associated with our tax-exempt investment program, more fully discussed in note 11, commercial paper issued under our corporate program, borrowings under the Federal Reserves term auction facility and commercial paper issued by the conduits. Collectively, these short-term borrowings had weighted-average interest rates of .73% and 2.21% for the years ended December31, 2009 and 2008, respectively. The following tables present the amounts outstanding and weighted-average interest rates of the primary components of short-term borrowings as of and for the years ended December31: Securities Sold Under Repurchase Agreements Federal Funds Purchased (Dollars in millions) 2009 2008 2007 2009 2008 2007 Balance at December31 $ 10,542 $ 11,154 $ 14,646 $ 4,532 $ 1,082 $ 425 Maximum outstanding at any month end 12,993 17,274 20,108 7,166 4,853 5,007 Average outstanding during the year 11,065 14,261 16,132 956 1,026 1,667 Weighted-average interest rate at end of year .03 % .01 % 3.40 % .01 % .01 % 3.06 % Weighted-average interest rate during the year .03 1.24 4.35 .04 1.77 5.15 Tax-Exempt InvestmentProgram Corporate Commercial Paper Program (Dollars in millions) 2009 2008 2007 2009 2008 2007 Balance at December31 $ 2,736 $ 2,858 $ 3,082 $ 2,777 $ 2,588 $ 2,355 Maximum outstanding at any month end 2,838 3,068 3,129 2,851 2,588 2,355 Average outstanding during the year 2,774 2,946 2,556 1,993 1,784 1,478 Weighted-average interest rate at end of year .33 % 2.80 % 3.62 % .21 % .82 % 4.23 % Weighted-average interest rate during the year .47 3.73 3.46 .30 2.78 5.12 ConduitCommercial Paper Program (Dollars in millions) 2009 Balance at December 31 $ 12,071 Maximum outstanding at any month end(1) 15,645 Average outstanding during the year(1) 10,691 Weighted-average interest rate at end of year 1.31 % Weighted-average interest rate during the year(1) 1.26 (1) Amounts relate to the period subsequent to consolidation of the conduits. Securities sold under repurchase agreements included the following at December31, 2009: (In millions) Collateralized with securities purchased under resale agreements $ 1,475 Collateralized with investment securities 9,067 Total $ 10,542 The 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 $9.25 billion underlying the repurchase agreements remained in investment

Long-Term Debt

Long-Term Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Long-Term Debt	Note9.Long-Term Debt (Dollars in millions) 2009 2008 Statutory business trusts: Floating-rate subordinated notes due to State Street Capital Trust IV in 2037 $ 800 $ 800 8.25% fixed-to-floating-rate subordinated notes due to State Street Capital Trust III in 2042 500 500 Floating-rate subordinated notes due to State Street Capital Trust I in 2028 155 155 Parent company and non-banking subsidiary issuances: 2.15% notes due 2012(1) 1,498 Long-term capital leases 751 746 4.30% notes due 2014 500 5.375% notes due 2017 450 450 7.65% subordinated notes due 2010(2) 305 313 Floating-rate notes due 2012 250 250 7.35% notes due 2026 150 150 9.50% mortgage note due 2009 1 State Street Bank issuances: Floating-rate notes due 2011(1) 1,450 1.85% notes due 2011(1) 1,000 5.25% subordinated notes due 2018(2) 430 455 5.30% subordinated notes due 2016 399 399 Floating-rate subordinated notes due 2015(3) 200 200 Total long-term debt $ 8,838 $ 4,419 (1) Notes are guaranteed by the FDIC under the Temporary Liquidity Guarantee Program, or TLGP. (2) We have entered into interest-rate swap agreements to modify our interest expense on these subordinated notes from a fixed rate to a floating rate. These swaps are recorded as fair value hedges, and at December31, 2009 and 2008, we recorded an increase of $31million and $56million, respectively, in the carrying value of long-term debt. (3) We have entered into interest-rate swap agreements, which are recorded as cash flow hedges, to modify our floating-rate interest expense on these subordinated notes to a fixed rate. See note16 for additional information about derivatives. 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. Statutory Business Trusts: As of December31, 2009, we had three statutory business trusts, State Street Capital Trusts I, III and IV, which as of December31, 2009, collectively had issued $1.45billion of trust preferred capital securities. Proceeds received by each of the trusts from their capitalization and from their capital securities issuances are invested in junior subordinated debentures issued by the parent company. The junior subordinated debentures are the sole assets of the trusts. Each of the trusts is wholly-owned by us; however, we do not record the trusts in our consolidated financial statements under existing accounting standards. Payments made by the trusts on the capital securities are dependent on our payments made to the trusts on the junior subordinated debentures. Our fulfillment of these commitments has the effect of providing a full, irrevocable and u

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies	Note10.Commitments and Contingencies Credit-Related Commitments and Contingencies: Credit-related financial instruments, which are off-balance sheet, include indemnified securities financing, unfunded commitments to extend credit or purchase assets, and standby letters of credit. The potential loss associated with indemnified securities financing, unfunded commitments and standby letters of credit is equal to the total gross contractual amount, which does not consider the value of any collateral. The following table summarizes the total gross contractual amounts of credit-related off-balance sheet financial instruments at December31. Amounts reported do not reflect participations to independent third parties. (In millions) 2009 2008 Indemnified securities financing $ 365,251 $ 324,590 Asset purchase agreements(1) 8,211 31,780 Unfunded commitments to extend credit 18,078 20,981 Standby letters of credit 4,784 6,061 (1) Amount for 2009 excludes agreements related to the commercial paper conduits, which were consolidated in May 2009; see note 11. Approximately 81% of the unfunded commitments to extend credit expire within one year from the date of issue. Since many of these commitments are expected to expire or renew without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. Securities Finance: On behalf of our customers, we lend their securities to creditworthy brokers and other institutions. We generally indemnify our customers for the fair market value of those securities against a failure of the borrower to return such securities. Collateral funds received in connection with our securities finance services are held by us as agent and are not recorded in our consolidated statement of condition. 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. The borrowed securities are revalued daily to determine if additional collateral is necessary. In this regard, we held, as agent, cash and U.S. government securities with an aggregate fair value of $375.92billion and $333.07billion as collateral for indemnified securities on loan at December31, 2009 and 2008, respectively, presented in the table above. The collateral held by us is invested on behalf of our customers in accordance with their guidelines. 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 repurchase agreement counterparty to provide collateral in an amount equal to or in excess of 100% of the amount of the repurchase agreement. The indemnified repurchase agreements and the related collateral are not recorded in our consolidated statement of condition. Of the collateral of $375.92 billion at December31, 2009 and $333.07 billion at December31, 2008 referenced above, $77.73 billion at December31, 2009 and $68.37 billion at December31, 2008 was invested in indemnified repurchase agreements. We held, as agent, cash and securities w

Securitizations and Variable In

Securitizations and Variable Interest Entities
	12 Months Ended Dec. 31, 2009 USD / shares
Securitizations and Variable Interest Entities	Note11.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 December31, 2009 and 2008, we carried investment securities available for sale, composed of securities related to state and political subdivisions, with a fair value of $3.13 billion and $3.05 billion, respectively, and other short-term borrowings (see note 8) of $2.74 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 current GAAP, and therefore are recorded in our consolidated financial statements. The trusts had a weighted-average life of approximately 8.1years at December31, 2009, compared to approximately 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 $2.83billion at December31, 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 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. Asset-Backed Commercial Paper Program: In the normal course of our business, we sponsor and administer multi-seller asset-backed commercial paper programs, or conduits. The conduits obtain funding through our customer deposit base, the issuance of commercial paper to independent third parties or other short-term sources of liquidity, and hold diversified investments, which are primarily mortgage- and asset-backed securities purchased from independent third parties, collateralized by mortgages, student loans, automobile and equipment loans and credit card receivables, among other asset types. In May2009, we elected to take action that resulted in the consolidation onto our consolidated balance

Shareholders' Equity

Shareholders' Equity
	12 Months Ended Dec. 31, 2009 USD / shares
Shareholders' Equity	Note12.Shareholders Equity Accumulated Other Comprehensive Loss: Accumulated other comprehensive loss included the following components as of December31: (In millions) 2009 2008 2007 Foreign currency translation $ 281 $ 68 $ 331 Net unrealized loss on hedges of net investments in non-U.S. subsidiaries (14 ) (14 ) (15 ) Net unrealized loss on available-for-sale securities (1,636 ) (5,205 ) (678 ) Net unrealized loss on fair value hedges of available-for-sale securities (113 ) (242 ) (55 ) Losses from other-than-temporary impairment on available-for-sale securities related to factors other than credit (159 ) Losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit (387 ) Minimum pension liability (192 ) (229 ) (146 ) Net unrealized loss on cash flow hedges (18 ) (28 ) (12 ) Total $ (2,238 ) $ (5,650 ) $ (575 ) The net after-tax unrealized loss on available-for-sale securities of $1.64 billion and $5.21 billion as of December31, 2009 and December31, 2008, respectively, included $635 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 in the losses related to transfers compared to December31, 2008 resulted from amortization and from the recognition of losses from other-than-temporary impairment on certain of the securities. Additional information is provided in note 3. For the year ended December31, 2009, we realized net gains of $368million from sales of available-for-sale securities. Unrealized pre-tax gains of $46million were included in other comprehensive income at December31, 2008, net of deferred taxes of $18million, related to these sales. For the year ended December31, 2008, we realized net gains of $68million from sales of available-for-sale securities. Unrealized pre-tax gains of $71million were included in other comprehensive income at December31, 2007, net of deferred taxes of $28million, related to these sales. For the year ended December31, 2007, we realized net gains of $7million on sales of available-for-sale securities. Unrealized pre-tax losses of $32million were included in other comprehensive income at December31, 2006, net of deferred taxes of $13million, related to these sales. Preferred Stock: In October2008, in connection with the U.S. Treasurys capital purchase program, we issued 20,000 shares of our Series B fixed-rate cumulative perpetual preferred stock, $100,000 liquidation preference per share, and a warrant to purchase 5,576,208 shares of our common stock at an exercise price of $53.80 per share, to Treasury, and received aggregate proceeds of $2 billion. The aggregate proceeds were allocated to the preferred stock and the warrant based on their relative fair values on the date of issuance. As a result, approximately $1.88 billion and $121 million, r

Fair Value

Fair Value
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value	Note 13.Fair Value Fair Value Measurements: We carry trading account assets, investment securities available for sale and various types of derivative financial instruments at fair value in our consolidated statement of condition on a recurring basis. Changes in 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 measure 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. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of these standards. We categorize the financial assets and liabilities that we carry at fair value based upon a prescribed 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 $10.06 billion of our financial assets, substantially composed of U.S. government securities, and $5 million of our financial liabilities in level 1 at December31, 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 predominately included various types of interest-rate and foreign exchange derivative instruments and fixed-income investment securities. We categorized approximately $61.61 billion of trading account assets, in

Equity-Based Compensation

Equity-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Equity-Based Compensation	Note 14.Equity-Based Compensation In May2009, our shareholders amended the 2006 Equity Incentive Plan to increase the number of shares of common stock approved for issuance for stock and stock-based awards, including stock options, stock appreciation rights, restricted stock, deferred stock and performance awards, from 20,000,000 shares to 37,000,000 shares. As of December31, 2007, 6,461,698 shares have been awarded under the 2006 Plan. As of December31, 2008, 12,173,627 shares have been awarded under the 2006 Plan. As of December31, 2009, 17,478,342 shares have been awarded under the 2006 Plan. In addition, up to 8,000,000 shares from our 1997 Equity Incentive Plan which were available to issue or became available to issue due to cancellations and forfeitures, may be awarded under the 2006 Plan. The 1997 Plan expired on December 18, 2006. As of December 31, 2009, 5,038,674 shares from the 1997 Plan have been added to, and may be awarded from, the 2006 Plan. We have stock options outstanding from the 1997 Plan under which no further grants can be made. 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 issued under the 2006 Plan and the 1997 Plan generally vest over four years and expire no later than ten years from the date of grant. For restricted stock awards issued under the 2006 Plan and the 1997 Plan, stock certificates are issued at the time of grant and recipients have dividend and voting rights. In general, these grants vest over three years. For deferred stock awards issued under the 2006 Plan and the 1997 Plan, no stock is issued at the time of grant. Generally, these grants vest over two-, three- or four-year periods. Performance awards granted under the 2006 Plan and the 1997 Plan are earned over a performance period based on achievement of goals, generally over two- to three-year periods. Payment for performance awards is made in cash or in shares of our common stock equal to its fair market value per share, based on certain financial ratios, after the conclusion of each performance period. We record compensation expense, equal to the estimated fair value of the options on the grant date, on a straight-line basis over the options vesting periods. We use a Black-Scholes option-pricing model to estimate the fair value of the options granted. The weighted-average assumptions used in connection with the option-pricing model were as follows for the years indicated: 2009 2008 2007 Dividend yield 4.82 % 1.32 % 1.34 % Expected volatility 26.70 21.00 23.30 Risk-free interest rate 2.49 3.17 4.69 Expected option lives (in years) 7.8 7.8 7.8 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 salaries and employee benefits expense in our consolidated statement of income, was $126million, $321 million and $272million for the years ended December31, 2009,

Regulatory Matters

Regulatory Matters
	12 Months Ended Dec. 31, 2009 USD / shares
Regulatory Matters	Note 15.Regulatory Matters Regulatory Capital: We are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum 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 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 accordance with regulatory accounting practices. Our capital amounts and their classification are subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require State Street and State Street Bank to maintain minimum risk-based capital and leverage ratios as set forth in the following table. The risk-based capital ratios are tier1 capital and total capital, each divided by adjusted total risk-weighted assets and market-risk equivalents, and the tier1 leverage ratio is tier1 capital divided by adjusted quarterly average assets. As of December31, 2009 and 2008, State Street and State Street Bank met all capital adequacy requirements to which they were subject. As of December31, 2009, State Street Bank was categorized as well capitalized under the regulatory capital adequacy framework. To be categorized as well capitalized, State Street Bank must exceed the well capitalized guideline ratios, as set forth in the table, and meet certain other requirements. State Street Bank exceeded all well capitalized requirements as of December31, 2009 and 2008. Management believes that there are no conditions or events since December31, 2009 that have changed the capital category of State Street Bank. Regulatory capital ratios and related amounts were as follows as of December31: Regulatory Guidelines(1) State Street State Street Bank (Dollars in millions) Minimum Well Capitalized 2009 2008 2009 2008 Risk-based ratios(2): Tier1 capital 4 % 6 % 17.7 % 20.3 % 17.3 % 19.8 % Total capital 8 10 19.1 21.6 19.0 21.3 Tier1 leverage ratio(2) 4 5 8.5 7.8 8.2 7.6 Total shareholders equity $ 14,491 $ 12,774 $ 14,668 $ 13,339 Capital trust securities 1,450 1,450 Unrealized loss on available-for-sale securities and cash flow hedges 2,313 5,458 2,309 5,453 Deferred tax liability associated with acquisitions 521 560 521 560 Recognition of pension plan funded status 168 227 168 227 Less: Goodwill 4,550 4,527 4,387 4,370 Other intangible assets 1,810 1,851 1,716 1,787 Other deductions(3) 578 1

Derivative Financial Instrument

Derivative Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Financial Instruments	Note 16.Derivative Financial Instruments We use derivative financial instruments to support our customers needs, conduct our trading activities, and manage our interest-rate and currency risk. 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. All foreign exchange contracts are valued daily at current market rates. 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 value 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 and option 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 the 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. 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 creditworthiness of each counterparty, and the collateral requirements are monitored and adjusted daily. Collateral is generally held in the form

Net Interest Revenue

Net Interest Revenue
	12 Months Ended Dec. 31, 2009 USD / shares
Net Interest Revenue	Note 17.Net Interest Revenue (In millions) 2009 2008 2007 Interest revenue: Deposits with banks $ 156 $ 760 $ 416 Investment securities: U.S. Treasury and federal agencies 520 889 1,106 State and political subdivisions 225 246 205 Other investments 2,075 1,931 2,292 Securities purchased under resale agreements and federal funds sold 24 339 756 Loans and leases(1) 239 269 382 Trading account assets 20 78 55 Interest revenue associated with AMLF 25 367 Other interest-earning assets 2 Total interest revenue 3,286 4,879 5,212 Interest expense: Deposits 195 1,326 2,298 Short-term borrowings 205 375 959 Long-term debt 304 229 225 Interest expense associated with AMLF 18 299 Total interest expense 722 2,229 3,482 Net interest revenue $ 2,564 $ 2,650 $ 1,730 (1) Interest revenue for 2008 reflected a cumulative reduction of $98 million recorded in connection with revisions of tax cash flow projections associated with our SILO lease transactions. Additional information about our SILO lease transactions is provided in note10.

Employee Benefits

Employee Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Benefits	Note 18.Employee Benefits State Street Bank and certain of its U.S. subsidiaries participate in a non-contributory, tax-qualified defined benefit pension plan. Effective January1, 2008, this plan was amended, and employer contribution credits to the plan were discontinued as of that date. Employee account balances will continue to earn annual interest credits until the employees retirement. In addition to the defined benefit pension plan, we have non-qualified unfunded supplemental retirement plans, referred to as SERPs, that provide certain officers with defined pension benefits in excess of allowable qualified plan limits. Non-U.S. employees participate in local defined benefit plans. State Street Bank and certain of its U.S. subsidiaries participate in a post-retirement plan that provides health care and insurance benefits for retired employees. Combined information for the U.S. and non-U.S. defined benefit plans, and information for the post-retirement plan, is as follows as of the December31 measurement date: Primary U.S. and Non-U.S. Defined Benefit Plans Post-Retirement Plan (In millions) 2009 2008 2009 2008 Benefit obligations: Beginning of year $ 765 $ 830 $ 94 $ 86 Service cost 13 18 4 4 Interest cost 45 47 6 5 Employee contributions 1 Plan amendments 5 Actuarial loss/(gains) 14 (34 ) 14 6 Benefits paid (33 ) (33 ) (7 ) (7 ) Expenses paid (3 ) Curtailments (1 ) (22 ) Settlements (7 ) Special termination benefits 1 Foreign currency translation 12 (44 ) End of year $ 808 $ 765 $ 112 $ 94 Plan assets at fair value: Beginning of year $ 692 $ 878 Actual return on plan assets 113 (144 ) Employer contributions 46 54 $ 7 $ 7 Benefits paid (33 ) (33 ) (7 ) (7 ) Expenses paid (3 ) Plan settlements (7 ) Foreign currency translation 17 (60 ) End of year $ 828 $ 692 $ $ Prepaid (Accrued) benefit expense: Funded status (plan assets less benefit obligations) $ 20 $ (73 ) $ (112 ) $ (94 ) Net prepaid (accrued) benefit expense $ 20 $ (73 ) $ (112 ) $ (94 ) PrimaryU.S. and Non-U.S. Defined Benefit Plans Post- Retirement Plan (In millions) 2009 2008 2009 2008 Amounts recognized in the consolidated statement of condition as of December31: Non-current assets $ 60 $ 40 C

Occupancy Expense and Informati

Occupancy Expense and Information Systems and Communications Expense
	12 Months Ended Dec. 31, 2009 USD / shares
Occupancy Expense and Information Systems and Communications Expense	Note19. Occupancy Expense and Information Systems and Communications Expense Occupancy expense and information systems and communications expense include expense for depreciation of buildings, leasehold improvements, computers, equipment and furniture and fixtures. Total depreciation expense for the years ended December31, 2009, 2008 and 2007 was $394million, $365million and $319million, respectively. We lease approximately 872,000 square feet at One Lincoln Street, our headquarters building located in Boston, Massachusetts, and a related 366,000 square-foot underground parking garage, under 20-year, non-cancelable capital leases expiring in September 2023. In addition, we lease approximately 362,000 square feet at 20 Churchill Place, an office building located in the U.K., under a 20-year capital lease expiring in December 2028, with the option to cancel the lease after the first 15 years. As of December31, 2009 and 2008, an aggregate net book value of $660million and $675million, respectively, related to the above-described capital leases was recorded in premises and equipment in our consolidated statement of condition, with the related liability recorded in long-term debt. Capital lease asset amortization is recorded in occupancy expense over the respective lease term. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. For the years ended December31, 2009 and 2008 and 2007, interest expense related to these capital lease obligations, reflected in net interest revenue, was $47 million, $36 million and $36million, respectively. As of December31, 2009 and 2008, accumulated amortization of assets related to capital leases was $185million and $139million, 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 computers and equipment are recorded in information systems and communications expense. Total rental expense, net of sublease revenue, amounted to $230million, $241million and $199million in 2009, 2008 and 2007, respectively. Total rental expense was reduced by sublease revenue of $17million, $11million and $15million for the years ended December31, 2009, 2008 and 2007, respectively. During 2007, we terminated an operating lease related to one of our office buildings in Boston, in connection with an overall evaluation of our office space as a result of our July 2007 acquisition of Investors Financial. The termination of the lease resulted in the recognition of a charge of approximately $91million, which was included in merger and integration costs recorded in our 2007 consolidated statement of income in connection with the acquisition. The following table presents a summary of future minimum lease payments under non-cancelable capital and operating leases as of December31, 2009. Future minimum rental commitments have been reduced by aggregate sublease rental commitments of $65million for capital leases and $77million for operating leases. The de

Expenses

Expenses
	12 Months Ended Dec. 31, 2009 USD / shares
Expenses	Note20. Expenses In June2009, the Staff of the SEC provided State Street Bank with a Wells notice related to the SECs ongoing investigation into disclosures and management by SSgA of certain of its active fixed-income strategies during 2007 and prior periods. Subsequent to the receipt of the Wells notice, we engaged in discussions with the SEC and other governmental and regulatory authorities regarding a potential settlement of this matter. Based on such discussions during the fourth quarter of 2009, we determined it appropriate to increase our reserve, initially established in 2007 to address litigation exposure and other costs associated with SSgAs management of these fixed-income strategies, by $250 million, to take into account such a potential settlement with these governmental authorities and the other ongoing litigation related to the active fixed-income strategies. As a result, we recorded a provision of $250 million in our 2009 consolidated statement of income related to our estimate of this legal exposure. We settled regulatory inquiries related to this exposure in February 2010, which settlement is more fully described in note10. During 2007 and 2008, the liquidity and pricing issues in the fixed-income securities markets adversely affected the market value of the securities in certain accounts managed by SSgA. These accounts, which are offered to retirement plans, allow participants to purchase and redeem units at a constant net asset value regardless of volatility in the underlying value of the assets held by the account. The accounts enter into contractual arrangements with independent third-party financial institutions that agree to make up any shortfall in the account if all the units are redeemed at the constant net asset value. The financial institutions have the right, under certain circumstances, to terminate this guarantee with respect to future investments in the account. During 2008, in reaction to the aforementioned issues, the third-party guarantors considered terminating their financial guarantees with the accounts. Although we were not statutorily or contractually obligated to do so, we elected to purchase approximately $2.49 billion of asset- and mortgage-backed securities from these accounts that had been identified as presenting increased risk in the then current market environment, which we classified in investment securities available for sale in our consolidated statement of condition, and to contribute an aggregate of $450 million to the accounts to improve the ratio of the market value of the accounts portfolio holdings to the book value of the accounts. Accordingly, we recorded a provision of $450 million in our 2008 consolidated statement of income to provide for this infusion. The components of other expenses were as follows for the years ended December31, (In millions) 2009 2008 2007 Customer indemnification obligation $ 200 Securities processing $ 114 187 $ 79 Regulator fees and assessments 71 45 3 Other 331 460 396 Total other expenses $ 516 $ 892 $ 478

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes	Note21. Income Taxes The components of income tax expense consisted of the following for the years ended December31: (In millions) 2009 2008 2007 Current: Federal $ 75 $ 1,065 $ 424 State 39 299 133 Non-U.S. 157 309 338 Total current expense 271 1,673 895 Deferred: Federal 383 (442 ) (155 ) State 28 (194 ) (59 ) Non-U.S. 40 (6 ) (39 ) Total deferred expense (benefit) 451 (642 ) (253 ) Total income tax expense $ 722 $ 1,031 $ 642 The table above excludes the income tax benefit of $2.41billion associated with the extraordinary loss recorded in connection with the May 2009 conduit consolidation. Income tax expense related to net gains from sales of available-for-sale investment securities was $147 million, $27 million and $3 million for 2009, 2008 and 2007, respectively. Pre-tax income attributable to operations located outside the U.S. was $801 million, $1.11 billion and $1.13 billion for 2009, 2008 and 2007, respectively. Pre-tax earnings of non-U.S. subsidiaries are subject to U.S. tax when effectively repatriated. As of December 31, 2009, we have chosen to indefinitely reinvest $1.15 billion of the retained earnings of certain non-U.S. subsidiaries. No provision has been recorded for U.S. income tax that could be incurred upon repatriation, and it is not practicable to determine the tax liability that could be incurred upon repatriation. During 2008, we recorded a $4 million decrease in deferred income tax expense associated with Massachusetts legislation entitled An Act Improving Tax Fairness and Business Competitiveness, which was signed into law in July 2008. Significant components of deferred tax liabilities and assets were as follows at December31: (In millions) 2009 2008 Deferred tax liabilities: Lease financing transactions $ 505 $ 535 Foreign currency translation 63 Fixed and intangible assets 725 775 Other 30 51 Total deferred tax liabilities 1,260 1,424 Deferred tax assets: Foreign currency translation 32 Unrealized losses on available-for-sale securities, net 3,353 3,522 Deferred compensation 165 172 Defined benefit pension plan 124 169 Operating expenses 231 272 Real estate 36 44 Other 39 49 Total deferred tax assets 3,980 4,228 Valuation allowance for deferred tax assets (7 ) (6 ) Net deferred tax assets 3,973 4,222 Net deferred tax (assets) $ (2,713 ) $ (2,798 ) Management considers the valuation allowance adequate to reduce the total deferred tax assets to an aggregate amount that will more likely than not be reali

Earnings Per Common Share

Earnings Per Common Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Common Share	Note22. Earnings Per Common Share The following table presents the computation of basic and diluted earnings per common share for the years ended December31: (Dollars in millions, except per share amounts) 2009 2008 2007 Net income before extraordinary loss $ 1,803 $ 1,811 $ 1,261 Less: Prepayment of preferred stock discount (106 ) Preferred stock dividends (46 ) (18 ) Accretion of preferred stock discount (11 ) (4 ) Net income before extraordinary loss available to common shareholders 1,640 1,789 1,261 Payments for cash dividends(1) (118 ) (389 ) (311 ) Undistributed earnings $ 1,522 $ 1,400 $ 950 Average shares outstanding (in thousands): Basic average shares 470,602 413,182 360,675 Average participating securities 875 713 698 Adjusted basic average shares 471,477 413,895 361,373 Basic average shares 470,602 413,182 360,675 Effect of dilutive securities: Stock options and stock awards 3,401 2,910 4,788 Equity-related financial instruments 8 25 Diluted average shares 474,003 416,100 365,488 Anti-dilutive securities(2) 10,294 2,012 1,091 Earnings per common share before extraordinary loss: Basic: Distributed $ 0.27 $ 0.94 $ 0.86 Undistributed(3) 3.23 3.38 2.63 Basic $ 3.50 $ 4.32 $ 3.49 Diluted $ 3.46 $ 4.30 $ 3.45 (1) Represents payments during the period to common shareholders and to participating securities, composed of holders of unvested restricted stock and director stock. (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.

Line of Business Information

Line of Business Information
	12 Months Ended Dec. 31, 2009 USD / shares
Line of Business Information	Note23. Line of Business Information We have 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. 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, 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 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 offers a broad array of services for managing financial assets, including investment management and investment research, primarily for institutional investors worldwide. These services include passive and active U.S. and non-U.S. equity and fixed-income investment management strategies, and other related services, such as securities finance. Revenue and expenses are directly charged or allocated to the lines of business through management information systems. We price our products and services on the basis of overall customer relationships and other factors; therefore, revenue may not necessarily reflect market pricing on products within the business lines in the same way it would for independent business entities. Assets and liabilities are allocated according to policies that support managements strategic and tactical goals. Capital is allocated based on risk-weighted assets and managements judgment. Capital allocations may not be representative of the capital that might be required if these lines of business were independent business entities. The following is a summary of our line of business results. The amounts in the Divestitures columns represent the operating results of our joint venture interest in CitiStreet prior to our sale of that interest in July 2008. The amounts presented in the Other column for 2009 represent net interest revenue earned in connection with our participation in the Federal Reserves AMLF, the provision for loan losses associated with the commercial real estate loans acquired in 2008 and merger and integration costs recorded in connection with our July 2007 acquisition of Investors Financial. The amounts in the Other column for 2008 represent the net interest revenue associated with our participation in the AMLF; the gain on the sale of our joint venture interest in CitiStreet; the restructuring charges recorded primarily in connection with our plan to reduce our expen

Non-U.S. Activities

Non-U.S. Activities
	12 Months Ended Dec. 31, 2009 USD / shares
Non-U.S. Activities	Note24. Non-U.S. Activities We define non-U.S. activities as those revenue-producing assets and business activities that arise from customers domiciled outside the United States. Due to the nature of our business, precise segregation of U.S. and non-U.S. activities is not possible. Subjective judgments have been applied to determine results of operations related to our non-U.S. activities, including our application of transfer pricing and our asset and liability management policies. Interest expense allocations are based on the average cost of short-term borrowed funds. The following table summarizes our non-U.S. operating results for the years ended December31: (In millions) 2009 2008 2007 Results of operations: Total fee revenue $ 2,452 $ 3,129 $ 2,707 Net interest revenue 426 632 713 Total revenue 2,878 3,761 3,420 Expenses 2,465 3,203 2,233 Income before income taxes 413 558 1,187 Income tax expense 158 215 415 Net income $ 255 $ 343 $ 772 The following table summarizes our non-U.S. assets as of December 31, based on the domicile location of our customers: 2009 2008 (In millions) Interest-bearing deposits with banks $ 15,052 $ 22,086 Non-U.S. investment securities 21,168 9,611 Other assets 16,079 17,316 Total assets $ 52,299 $ 49,013

Parent Company Financial Statem

Parent Company Financial Statements
	12 Months Ended Dec. 31, 2009 USD / shares
Parent Company Financial Statements	Note25. Parent Company Financial Statements The following tables present the financial statements of the parent company without consolidation of its banking and non-banking subsidiaries. STATEMENT OF INCOME Years ended December31, 2009 2008 2007 (In millions) Interest on securities purchased under resale agreements $ 105 $ 446 Cash dividends from consolidated banking subsidiary $ 250 70 Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities 25 52 120 Other, net (11 ) (8 ) 74 Total revenue 264 149 710 Interest on securities sold under repurchase agreements 64 360 Other interest expense 178 211 208 Other expenses 53 77 86 Total expenses 231 352 654 Income tax benefit (38 ) (75 ) (76 ) Income (Loss) before equity in undistributed income of consolidated subsidiaries and unconsolidated entities 71 (128 ) 132 Extraordinary loss, net of taxes (20 ) Equity in undistributed income (loss) of consolidated subsidiaries and unconsolidated entities: Consolidated banking subsidiary (1,987 ) 1,814 1,177 Consolidated non-banking subsidiaries and unconsolidated entities 55 125 (48 ) Net income (loss) $ (1,881 ) $ 1,811 $ 1,261 STATEMENT OF CONDITION As of December31, 2009 2008 (In millions) Assets: Interest-bearing deposits with banking subsidiary $ 4,227 $ 2,770 Investment securities available for sale 128 256 Investment securities held to maturity purchased under money market liquidity facility (fairvalue of $3,099 in 2008) 3,089 Investments in subsidiaries: Consolidated banking subsidiary 14,668 13,339 Consolidated non-banking subsidiaries 1,947 1,158 Unconsolidated entities 256 252 Notes and other receivables from: Consolidated banking subsidiary 143 422 Consolidated non-banking subsidiaries and unconsolidated entities 301 239 Other assets 380 229 Total assets $ 22,050 $ 21,754 Liabilities: Short-term borrowings under money market liquidity facility $ 3,063 Commercial paper $ 2,777 2,588 Accrued taxes, expenses and other liabilities due to: Consolidated banking subsidiary 447 Consolidated non-banking subsidiaries 9 9 Third parties 165 255 Long-term debt 4,608 2,618 Total liabilities 7,559 8,980 Shareholders equity 14,491 12,774 Total liabilities and shareholders equity $ 22,050 $ 21,754 STATEMENT OF CASH FLOWS Years ended December31, 20

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Trading Symbol	STT
Entity Registrant Name	STATE STREET Corp
Entity Central Index Key	0000093751
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		495,380,839
Entity Public Float			$23,290,000,000