Stockholders' Equity

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Shareholders' Equity

Preferred Stock:

Preferred Stock, Series F

In May 2015, we issued 750 thousand depositary shares, each representing a 1/100th ownership interest in a share of State Street’s fixed-to-floating-rate non-cumulative perpetual preferred stock, Series F, without par value per share, with a liquidation preference of $100,000 per share (equivalent to $1,000 per depositary share), in a public offering. The aggregate proceeds from the offering, net of underwriting discounts, commissions and other issuance costs, were approximately $742 million.

On September 15, 2020, or any dividend payment date thereafter, the Series F preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at a redemption price equal to $100,000 per share (equivalent to $1,000 per depositary share) plus any declared and unpaid dividends, without accumulation of any undeclared dividends. The Series F preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to September 15, 2020, upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation with respect to the Series F preferred stock, at a redemption price equal to $100,000 per share (equivalent to $1,000 per depositary share) plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

Preferred Stock, Series E

In the three months ended June 30, 2015, we declared dividends on our Series E preferred stock of $1,500 per share, or approximately $0.38 per depositary share, totaling approximately $11 million. In the six months ended June 30, 2015, we declared dividends on our Series E preferred stock of $3,333 per share, or approximately $0.84 per depositary share, totaling approximately $25 million. We did not declare a dividend on the Series E preferred stock in the first six months of June 30, 2014.

Preferred Stock, Series D

In the three months ended June 30, 2015, we declared aggregate dividends on our Series D preferred stock of $1,475 per share, or approximately $0.37 per depositary share, totaling approximately $11 million. In the six months ended June 30, 2015, we declared aggregate dividends on our Series D preferred stock of $2,950 per share, or approximately $0.74 per depositary share, totaling approximately $22 million. In the three months ended June 30, 2014, we declared aggregate dividends on our Series D preferred stock of $1,655 per share, or approximately $0.41 per depositary share, totaling approximately $12 million.

Preferred Stock, Series C

In the three months ended June 30, 2015, we declared aggregate dividends on our Series C preferred stock of $1,313 per share, or approximately $0.33 per depositary share, totaling approximately $7 million. In the six months ended June 30, 2015, we declared aggregate dividends on our Series C preferred stock of $2,626 per share, or approximately $0.66 per depositary share, totaling approximately $13 million. In the three months ended June 30, 2014, we declared aggregate dividends on our Series C preferred stock of $1,313 per share, or approximately $0.33 per depositary share, totaling approximately $7 million. In the six months ended June 30, 2014, we declared aggregate dividends on our Series C preferred stock of $2,626 per share, or approximately $0.66 per depositary share, totaling approximately $13 million.

Common Stock:

In March 2015 our Board of Directors, or Board, approved a common stock purchase program authorizing the purchase of up to $1.8 billion of our common stock through June 30, 2016. In the three months ended June 30, 2015, we purchased approximately 4.4 million shares of our common stock at an average per-share cost of $78.79 and an aggregate cost of approximately $350 million were purchased by us under this program.

In the three months ended March 31, 2015, we purchased approximately 6.3 million shares of our common stock at an average per-share cost of $74.88 and an aggregate cost of approximately $470 million under a previous program approved by the Board in March 2014. As of March 31, 2015, no shares remained available for purchases of our common stock under the program.

Under both programs, in the six months ended June 30, 2015, we purchased in the aggregate approximately 10.7 million shares of our common stock at an average per-share cost of $76.50 and an aggregate cost of $820 million. Shares acquired under the programs which remained unissued as of June 30, 2015 were recorded as treasury stock in our consolidated statement of condition as of June 30, 2015.

In the three months ended June 30, 2015, we declared aggregate common stock dividends of $0.34 per share, totaling approximately $139 million. In the three months ended June 30, 2014, we declared aggregate common stock dividends of $0.30 per share, totaling approximately $128 million. In the six months ended June 30, 2015, we declared aggregate common stock dividends of $0.64 per share, totaling approximately $262 million, compared to aggregate common stock dividends of $0.56 per share, totaling approximately $240 million, declared in the six months ended June 30, 2014.

Accumulated Other Comprehensive Income (Loss):

The following table presents the after-tax components of AOCI as of the dates indicated:

(In millions)	June 30, 2015			December 31, 2014
Net unrealized gains on cash flow hedges	$	296		$	276
Net unrealized gains (losses) on available-for-sale securities portfolio	139			273
Net unrealized gains (losses) related to reclassified available-for-sale securities	30			39
Net unrealized gains (losses) on available-for-sale securities	169			312
Net unrealized losses on available-for-sale securities designated in fair value hedges	(113		)	(121		)
Other-than-temporary impairment on available-for-sale securities related to factors other than credit	—			1
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	(22		)	(29		)
Net unrealized losses on retirement plans	(257		)	(272		)
Foreign currency translation	(1,070		)	(660		)
Total	$	(1,011	)	$	(507	)

The following tables present changes in AOCI by component, net of related taxes, for the periods indicated:

	Six Months Ended June 30, 2015
(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
Balance as of December 31, 2014	$	276	$	192		$	(14	)	$	(29	)	$	(272	)	$	(660	)	$	(507	)
Other comprehensive income (loss) before reclassifications	19		(134		)	—			8			—			(410		)	(517		)
Amounts reclassified into earnings	1		(2		)	—			(1		)	15			—			13
Other comprehensive income (loss)	20		(136		)	—			7			15			(410		)	(504		)
Balance as of June 30, 2015	$	296	$	56		$	(14	)	$	(22	)	$	(257	)	$	(1,070	)	$	(1,011	)

	Six Months Ended June 30, 2014
(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
Balance as of December 31, 2013	$	161		$	(221	)	$	(14	)	$	(47	)	$	(203	)	$	229	$	(95	)
Other comprehensive income (loss) before reclassifications	(62		)	551			—			11			1			73		574
Amounts reclassified into earnings	1			(9		)	—			1			17			—		10
Other comprehensive income (loss)	(61		)	542			—			12			18			73		584
Balance as of June 30, 2014	$	100		$	321		$	(14	)	$	(35	)	$	(185	)	$	302	$	489

The following table presents after-tax reclassifications into earnings for the periods indicated:

	Three Months Ended June 30,
	2015			2014
(In millions)	Amounts Reclassified into Earnings					Affected Line Item in Consolidated Statement of Income
Available-for-sale securities:
Net realized gains from sales of available-for-sale securities, net of related tax benefit of $1 in 2015	$	(2	)	$	—	Net gains (losses) from sales of available-for-sale securities
Held-to-maturity securities:
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	—			1		Losses reclassified (from) to other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of tax benefit of $3 and related taxes of ($8), respectively	10			12		Compensation and employee benefits expenses
Total reclassifications out of AOCI	$	8		$	13

	Six Months Ended June 30,
	2015			2014
(In millions)	Amounts Reclassified into Earnings						Affected Line Item in Consolidated Statement of Income
Cash flow hedges:
Interest-rate contracts, net of related tax benefit of $1 and $1, respectively	$	1		$	1		Net interest revenue
Available-for-sale securities:
Net realized gains from sales of available-for-sale securities, net of related tax benefit of $1 and related taxes of ($6), respectively	(2		)	(9		)	Net gains (losses) from sales of available-for-sale securities
Held-to-maturity securities:
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(1		)	1			Losses reclassified (from) to other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of ($1) and ($5), respectively	15			17			Compensation and employee benefits expenses
Total reclassifications out of AOCI	$	13		$	10