Line of Business Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Line Of Business Information

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, 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. We provide shareholder services, which include mutual fund and collective investment fund shareholder accounting, through 50%-owned affiliates, Boston Financial Data Services, Inc. and the International Financial Data Services group of companies.

Investment Management, through SSgA, provides a broad range of investment management strategies, specialized investment management advisory services and other financial services, such as securities finance, for corporations, public funds, and other sophisticated investors. Management strategies offered by SSgA include passive and active, such as enhanced indexing, using quantitative and fundamental methods for both U.S. and non-U.S. equity and fixed-income securities. SSgA also offers exchange-traded funds.

Our investment servicing strategy is to focus on total client relationships and the full integration of our products and services across our client base through cross-selling opportunities. In general, our clients will use a combination of services, depending on their needs, rather than one product or service. For instance, a custody client may purchase securities finance and cash management services from different business units. Products and services that we provide to our clients are parts of an integrated offering to these clients. We price our products and services on the basis of overall client relationships and other factors; as a result, revenue may not necessarily reflect the stand-alone market price of these products and services within the business lines in the same way it would for independent business entities.

Generally, approximately two-thirds of our consolidated total revenue (fee revenue from investment servicing and investment management, as well as trading services and securities finance activities) is generated by these two business lines. The remaining one-third is composed of processing fees and other revenue, net interest revenue, which is largely generated by the investment of client deposits, short-term borrowings and long-term debt in a variety of assets, and net gains (losses) related to investment securities. These other revenue types are generally fully allocated to, or reside in, Investment Servicing and Investment Management.

Revenue and expenses are directly charged or allocated to the lines of business through management information systems. Assets and liabilities are allocated according to policies that support management’s strategic and tactical goals. Capital is allocated based on risk-weighted assets and management’s 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 for the periods indicated. The “Other” column for 2012 included the net realized loss from the sale of all of our Greek investment securities previously classified as held to maturity; a benefit related to claims associated with the 2008 Lehman Brothers bankruptcy; provisions for litigation exposure and other costs; acquisition-related integration costs; and restructuring charges associated with both our Business Operations and Information Technology Transformation program and expense control measures.

The “Other” column for 2011 included acquisition-related integration costs and restructuring charges associated with our Business Operations and Information Technology Transformation program and expense control measures. The “Other” column for 2010 included the net loss from sales of investment securities associated with the December 2010 investment portfolio repositioning, acquisition-related integration costs, and restructuring charges associated with our Business Operations and Information Technology Transformation program. The amounts in the “Other” columns were not allocated to State Street's business lines. Results for 2011 reflect the retroactive effect of management changes in methodology related to funds transfer pricing and expense allocation in 2012. Results for 2010 were not restated.

	Years Ended December 31,
(Dollars in millions, except where otherwise noted)	Investment Servicing									Investment Management									Other									Total
	2012			2011			2010			2012			2011			2010			2012			2011			2010			2012			2011			2010
Fee revenue:
Servicing fees	$	4,414		$	4,382		$	3,938		$	—		$	—		$	—		$	—		$	—		$	—		$	4,414		$	4,382		$	3,938
Management fees	—			—			—			993			917			829			—			—			—			993			917			829
Trading services	1,010			1,220			1,106			—			—			—			—			—			—			1,010			1,220			1,106
Securities finance	363			333			265			42			45			53			—			—			—			405			378			318
Processing fees and other	161			195			225			105			102			124			—			—			—			266			297			349
Total fee revenue	5,948			6,130			5,534			1,140			1,064			1,006			—			—			—			7,088			7,194			6,540
Net interest revenue	2,456			2,231			2,553			82			102			146			—			—			—			2,538			2,333			2,699
Gains (losses) related to investment securities, net	69			67			58			—			—			—			(46		)	—			(344		)	23			67			(286		)
Total revenue	8,473			8,428			8,145			1,222			1,166			1,152			(46		)	—			(344		)	9,649			9,594			8,953
Provision for loan losses	(3		)	—			25			—			—			—			—			—			—			(3		)	—			25
Expenses from operations	6,033			5,890			5,430			872			899			753			—			—			(7		)	6,905			6,789			6,176
Securities lending charge	—			—			75			—			—			339			—			—			—			—			—			414
Claims resolution	—			—			—			—			—			—			(362		)	—			—			(362		)	—			—
Provisions for litigation exposure and other costs	—			—			—			—			—			—			118			—			—			118			—			—
Acquisition and restructuring costs, net	—			—			—			—			—			—			225			269			252			225			269			252
Total expenses	6,033			5,890			5,505			872			899			1,092			(19		)	269			245			6,886			7,058			6,842
Income (loss) before income tax expense	$	2,443		$	2,538		$	2,615		$	350		$	267		$	60		$	(27	)	$	(269	)	$	(589	)	$	2,766		$	2,536		$	2,086
Pre-tax margin	29		%	30		%	32		%	29		%	23		%	5		%										29		%	26		%	23		%
Average assets (in billions)	$	189.8		$	170.4		$	146.9		$	4.0		$	4.4		$	5.1											$	193.8		$	174.8		$	152.0