Shareholders' Equity

9 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Equity

Common Stock:

In March 2013, our Board of Directors approved a program authorizing the purchase by us of up to $2.10 billion of our common stock through March 31, 2014. In the three months ended September 30, 2013, under this program, we purchased approximately 8.2 million shares of our common stock at an average cost of $68.57 per share and an aggregate cost of approximately $560 million. No shares were purchased by us under this program in the three months ended March 31, 2013. From April 1, 2013 through September 30, 2013, we purchased approximately 16.7 million shares of our common stock under this program at an average per-share and aggregate cost of $67.12 and $1.12 billion, respectively. As of September 30, 2013, approximately $980 million remained available for purchases of our common stock under the March 2013 program.

In the three months ended March 31, 2013, we purchased approximately 6.5 million shares of our common stock at an average cost of $54.95 per share and an aggregate cost of approximately $360 million, under a previous Board-approved program which ended on March 31, 2013.

In the nine months ended September 30, 2013, under both programs, we purchased in the aggregate approximately 23.2 million shares of our common stock at an average per-share cost of $63.69 and an aggregate cost of approximately $1.48 billion. Shares acquired in connection with our common stock purchase programs which remained unissued as of September 30, 2013 were recorded as treasury stock in our consolidated statement of condition as of September 30, 2013.

In the three months ended September 30, 2013, we declared a quarterly common stock dividend of $0.26 per share, totaling approximately $115 million. In the three months endedSeptember 30, 2012, we declared a quarterly common stock dividend of $0.24 per share, or approximately $113 million. In the nine months ended September 30, 2013, we declared aggregate common stock dividends of $0.78 per share, totaling approximately $350 million, compared to aggregate common stock dividends of $0.72 per share, totaling approximately $346 million, declared in the nine months endedSeptember 30, 2012.

Preferred Stock:

In the three months ended September 30, 2013, we declared a quarterly dividend on our non-cumulative perpetual preferred stock, Series C, of $1,312.50 per share, or approximately $0.33 per depositary share (represented by depositary shares, each representing a 1/4,000th ownership interest in a share of State Street’s non-cumulative perpetual preferred stock, Series C), totaling approximately $7 million. In the nine months ended September 30, 2013, we declared aggregate dividends on our non-cumulative perpetual preferred stock, Series C, of $3,937.50 per share, or approximately $0.98 per depositary share, totaling approximately $20 million. In both the three and nine months ended September 30, 2012, dividends declared on our perpetual preferred stock, Series C, totaled approximately $8 million. In the three and nine months ended September 30, 2012, we declared dividends on our non-cumulative perpetual preferred stock, Series A, totaling approximately $7 million and $21 million, respectively. We redeemed our perpetual preferred stock, Series A, in the three months ended December 31, 2012.

Accumulated Other Comprehensive Income (Loss):

The following table presents the after-tax components of accumulated other comprehensive income (loss), or AOCI, as of the dates indicated:

(In millions)	September 30, 2013			December 31, 2012
Net unrealized gains on cash flow hedges	$	130		$	69
Net unrealized gains on available-for-sale securities portfolio	138			815
Net unrealized losses related to reclassified available-for-sale securities	(81		)	(110		)
Net unrealized gains on available-for-sale securities	57			705
Net unrealized losses on available-for-sale securities designated in fair value hedges	(122		)	(183		)
Other-than-temporary impairment on available-for-sale securities related to factors other than credit	3			(3		)
Net unrealized losses on hedges of net investments in non-U.S. subsidiaries	(14		)	(14		)
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(51		)	(65		)
Net unrealized losses on retirement plans	(274		)	(283		)
Foreign currency translation	157			134
Total	$	(114	)	$	360

The following table presents changes in AOCI by component, net of related taxes, in the nine months ended September 30:

	Nine Months Ended September 30, 2013
(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for-Sale Securities			Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries			Other-Than-Temporary Impairment on Held-to-Maturity Securities			Net Unrealized Losses on Retirement Plans			Foreign Currency Translation		Total
Beginning balance	$	69	$	519		$	(14	)	$	(65	)	$	(283	)	$	134	$	360
Other comprehensive income (loss) before reclassifications	59		(578		)	—			11			(6		)	22		(492		)
Amounts reclassified out of AOCI	2		(3		)	—			3			15			1		18
Other comprehensive income (loss)	61		(581		)	—			14			9			23		(474		)
Ending balance	$	130	$	(62	)	$	(14	)	$	(51	)	$	(274	)	$	157	$	(114	)

The following table presents reclassifications out of AOCI in the three and nine months endedSeptember 30, 2013:

	Amount Reclassified out of AOCI						Affected Line Item in Consolidated Statement of Income
(In millions)	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013
Cash flow hedges:
Interest-rate contracts, net of related taxes of $1	$	—		$	2		Net interest revenue
Available-for-sale securities:
Net realized gains from sales of available-for-sale securities, net of related taxes of ($2) and ($4), respectively	(4		)	(7		)	Net gains (losses) from sales of available-for-sale securities
Other-than-temporary impairment on available-for-sale securities related to factors other than credit, net of related taxes of $2	—			4			Losses reclassified (from) to other comprehensive income
Held-to-maturity securities:
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $1 and $3, respectively	1			3			Losses reclassified (from) to other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of $3 and $9, respectively	5			15			Compensation and employee benefits expense
Foreign currency translation:
Sale of foreign entities, net of related taxes of $1	—			1			Processing fees and other revenue
Total reclassifications out of AOCI	$	2		$	18

In the nine months ended September 30, 2013, we realized net gains of $11 million, or $7 million net of related taxes as presented in the table above, from sales of available-for-sale securities. Unrealized pre-tax gains of $25 million were included in AOCI as of December 31, 2012, net of deferred taxes of $10 million, related to these sales. In the nine months endedSeptember 30, 2012, we realized net gains of $29 million from sales of available-for-sale securities. Unrealized pre-tax gains of $22 million were included in AOCI as of December 31, 2011, net of deferred taxes of $9 million, related to these sales.