Line of Business Information

12 Months Ended

Dec. 31, 2013

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; record-keeping; cash management; 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 array of investment management, investment research and investment advisory services to corporations, public funds and other sophisticated investors. SSgA offers strategies for managing financial assets, including passive and active, such as enhanced indexing, using quantitative and fundamental methods for both U.S. and global equities and fixed-income securities. SSgA also offers exchange-traded funds, or ETFs, such as the SPDR^® ETF brand.

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

Generally, approximately 70% to 75% 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 25% to 30% is composed of processing fees and other revenue, net interest revenue, which is largely generated by our investment of client deposits, short-term borrowings and long-term debt in a variety of assets, and net gains (losses) related to investment securities. These other revenue types are generally fully allocated to, or reside in, Investment Servicing and Investment Management.

Revenue and expenses are directly charged or allocated to our lines of business through management information systems. Assets and liabilities are allocated according to policies that support management’s strategic and tactical goals. Capital is allocated based on the relative risks and capital requirements inherent in each business line, along with management judgment. Capital allocations may not be representative of the capital that might be required if these lines of business were separate business entities.

The following table provides a summary of our line of business results for the periods indicated. The “Other” column for 2013 included net acquisition and restructuring costs of $104 million; certain provisions for litigation exposure and other costs of $65 million; and severance costs associated with reorganization of certain non-U.S. operations of $11 million. The “Other” column for 2012 included the net realized loss from the sale of all of our Greek investment securities of $46 million; a benefit related to claims associated with the 2008 Lehman Brothers bankruptcy of $362 million; certain provisions for litigation exposure and other costs of $118 million; and acquisition and restructuring costs of $225 million. The “Other” column for 2011 included acquisition and restructuring costs of $269 million. The amounts in the “Other” columns were not allocated to State Street's business lines. Results for 2012 reflect reclassifications, for comparative purposes, related to management changes in methodologies associated with allocations of capital and expenses reflected in results for 2013. Results for 2011 were not adjusted for these reclassifications.

	Investment Servicing									Investment Management									Other									Total
Years Ended December 31,	2013			2012			2011			2013			2012			2011			2013			2012			2011			2013			2012			2011
(Dollars in millions, except where otherwise noted)
Fee revenue:
Servicing fees	$	4,819		$	4,414		$	4,382		$	—		$	—		$	—		$	—		$	—		$	—		$	4,819		$	4,414		$	4,382
Management fees	—			—			—			1,106			993			917			—			—			—			1,106			993			917
Trading services	994			912			1,131			67			98			89			—			—			—			1,061			1,010			1,220
Securities finance	324			363			333			35			42			45			—			—			—			359			405			378
Processing fees and other	238			259			284			7			7			13			—			—			—			245			266			297
Total fee revenue	6,375			5,948			6,130			1,215			1,140			1,064			—			—			—			7,590			7,088			7,194
Net interest revenue	2,221			2,464			2,231			82			74			102			—			—			—			2,303			2,538			2,333
Gains (losses) related to investment securities, net	(9		)	69			67			—			—			—			—			(46		)	—			(9		)	23			67
Total revenue	8,587			8,481			8,428			1,297			1,214			1,166			—			(46		)	—			9,884			9,649			9,594
Provision for loan losses	6			(3		)	—			—			—			—			—			—			—			6			(3		)	—
Total expenses	6,176			6,041			5,890			836			864			899			180			(19		)	269			7,192			6,886			7,058
Income before income tax expense	$	2,405		$	2,443		$	2,538		$	461		$	350		$	267		$	(180	)	$	(27	)	$	(269	)	$	2,686		$	2,766		$	2,536
Pre-tax margin	28		%	29		%	30		%	36		%	29		%	23		%										27		%	29		%	26		%
Average assets (in billions)	$	203.24		$	190.09		$	170.45		$	3.76		$	3.72		$	4.36											$	207.00		$	193.81		$	174.81