Long-Term Debt



(Dollars in millions)						As of December 31,
Issuance Date	Maturity Date	Coupon Rate		Seniority	Interest Due Dates	2016		2015⁽⁶⁾
Statutory business trusts⁽⁵⁾:
April 30, 2007	June 15, 2037	Floating-rate		Junior subordinated debentures	3/15; 6/15; 9/15; 12/15	$	—	$	793
May 15, 1998	May 15, 2028	Floating-rate		Junior subordinated debentures	2/15; 5/15; 8/15; 11/15	—		155
Parent company and non-banking subsidiary issuances:
August 18, 2015	August 18, 2025	3.55	%	Senior notes	2/18; 8/18⁽¹⁾	1,293		1,301
August 18, 2015	August 18, 2020	2.55	%	Senior notes	2/18; 8/18⁽¹⁾	1,192		1,194
November 19, 2013	November 20, 2023	3.7	%	Senior notes	5/20; 11/20⁽¹⁾	1,033		1,046
December 15, 2014	December 16, 2024	3.3	%	Senior notes	6/16; 12/16⁽¹⁾	999		1,007
May 15, 2013	May 15, 2023⁽²⁾	3.1	%	Subordinated notes	5/15; 11/15⁽¹⁾	987		993
April 30, 2007⁽⁵⁾	June 15, 2037	Floating-rate		Junior subordinated debentures	3/15; 6/15; 9/15; 12/15	793		—
March 7, 2011	March 7, 2021	4.375	%	Senior notes	3/7; 9/7⁽¹⁾	738		738
May 19, 2016	May 19, 2021	1.95	%	Senior notes	5/19; 11/19⁽¹⁾	726		—
May 19, 2016	May 19, 2026	2.65	%	Senior notes	5/19; 11/19⁽¹⁾	704		—
February 11, 2011	March 15, 2018⁽³⁾	4.956	%	Junior subordinated debentures	3/15; 9/15⁽¹⁾	511		519
August 18, 2015	August 18, 2020	Floating-rate		Senior notes	2/18; 5/18; 8/18; 11/18	499		498
May 15, 2013	May 15, 2018	1.35	%	Senior notes	5/15; 11/15⁽¹⁾	497		495
April 30, 2007	April 30, 2017	5.375	%	Senior notes	4/30; 10/30	450		449
May 15, 1998⁽⁵⁾	May 15, 2028	Floating-rate		Junior subordinated debentures	2/15; 5/15; 8/15; 11/15	150		—
June 21, 1996	June 15, 2026⁽⁴⁾	7.35	%	Senior notes	6/15; 12/15	150		150
March 7, 2011	March 7, 2016	2.875	%	Senior notes	3/7	—		1,001
Parent company:
Long-term capital leases						293		334
State Street Bank issuances:
September 24, 2003	October 15, 2018⁽²⁾	5.25	%	Subordinated notes	4/15; 10/15	415		424
December 8, 2005	January 15, 2016	5.3	%	Subordinated notes	1/15	—		400
Total long-term debt						$	11,430	$	11,497

⁽¹⁾

We have entered into interest-rate swap agreements, recorded as fair value hedges, to modify our interest expense on these senior and subordinated notes from a fixed rate to a floating rate. As of December 31, 2016, the carrying value of long-term debt associated with these fair value hedges decreased $15 million. As of December 31, 2015, the carrying value of long-term debt associated with these fair value hedges increased $105 million. Refer to Note 10 for additional information about fair value hedges.


⁽²⁾	The subordinated notes qualify for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines.


⁽³⁾	We do not have the right to redeem the debenture prior to maturity other than upon the occurrence of specified events. Such redemption is subject to federal regulatory approval. The junior subordinated debenture qualify for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines.


⁽⁴⁾	We may not redeem the note prior to their maturity.


⁽⁵⁾	On December 21, 2016, the statutory business trusts were liquidated and the floating-rate junior subordinated debentures issuances of the statutory business trusts were exchanged for a like principal amount of State Street Corporation's floating-rate junior subordinated debentures with the same maturity dates.


⁽⁶⁾	Refer to Note 1 regarding the retrospective application of ASU 2015-03, which resulted in the netting of debt issuance costs within long-term debt.

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.

As of December 31, 2016, State Street Bank had Board authority to issue unsecured senior debt securities from time to time, provided that the aggregate principal amount of such unsecured senior debt outstanding at any one time does not exceed $5 billion. As of December 31, 2016, $4 billion was available for issuance pursuant to this authority. As of December 31, 2016, State Street Bank also had Board authority to issue an additional $500 million of subordinated debt.

Statutory Business Trusts:

As of December 31, 2015, we had two statutory business trusts, State Street Capital Trusts I and IV, which as of December 31, 2015 had collectively issued $955 million of trust preferred capital securities. Proceeds received by each of the trusts from their capitalization and from their capital securities issuances were invested in junior subordinated debentures issued by the parent company. The junior subordinated debentures were the sole assets of Capital Trusts I and IV. Each of the trusts was wholly-owned by us; however, in conformity with U.S. GAAP, we did not record the trusts in our consolidated financial statements.

Payments made by the trusts to holders of the capital securities were dependent on our payments made to the trusts on the junior subordinated debentures. Our fulfillment of these commitments had the effect of providing a full, irrevocable and unconditional guarantee of the trusts’ obligations under the capital securities. While the capital securities issued by the trusts were not recorded in our consolidated statement of condition, a portion of the junior subordinated debentures qualified for inclusion in tier 1 regulatory capital with the remainder qualifying for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines. Information about restrictions on our ability to obtain funds from our subsidiary banks is provided in Note 16.

Interest paid by the parent company on the debentures was recorded in interest expense. Distributions to holders of the capital securities by the trusts were payable from interest payments received on the debentures and were due quarterly by State Street Capital Trusts I and IV, subject to deferral for up to five years under certain conditions. The capital securities were subject to mandatory redemption in whole at the stated maturity upon repayment of the debentures, with an option by us to redeem the debentures at any time. Such optional redemption was subject to federal regulatory approval.

Effective December 21, 2016, the liquidation date, State Street Capital Trusts I and IV were dissolved in accordance with the terms of State Street Capital Trusts I and IV, and we exchanged the floating-rate capital securities of State Street Capital Trust I due in 2028 for a like principal amount of State Street Corporation floating-rate junior subordinated debentures due in 2028, and we exchanged the floating-rate capital securities of State Street Capital Trust IV due in 2037 for a like principal amount of State Street Corporation floating-rate junior subordinated debentures due in 2037.

The next scheduled interest payment on the State Street Corporation floating-rate junior subordinated debentures due in 2028 and 2037 will include any accrued and unpaid distributions on the floating rate capital securities of State Street Capital Trust I due in 2028 and State Street Capital Trust IV due in 2037, respectively.

Parent Company:

As of December 31, 2016 and 2015, long-term capital leases included $278 million and $308 million, respectively, related to our One Lincoln Street headquarters building and related underground parking garage. Refer to Note 20 for additional information.