Long-Term Debt

12 Months Ended

Dec. 31, 2019

Long-term Debt, Unclassified [Abstract]



(Dollars in millions)						As of December 31,
Issuance Date	Maturity Date	Coupon Rate		Seniority	Interest Due Dates	2019		2018
Parent Company And Non-Banking Subsidiary Issuances
August 18, 2015	August 18, 2025	3.55	%	Senior notes	2/18; 8/18⁽¹⁾	$	1,331	$	1,268
August 18, 2015	August 18, 2020	2.55	%	Senior notes	2/18; 8/18	1,191		1,177
November 19, 2013	November 20, 2023	3.7	%	Senior notes	5/20; 11/20⁽¹⁾	1,037		1,006
December 15, 2014	December 16, 2024	3.3	%	Senior notes	6/16; 12/16⁽¹⁾	1,022		979
May 15, 2013	May 15, 2023⁽²⁾	3.1	%	Subordinated notes	5/15; 11/15⁽¹⁾	1,006		972
November 1, 2019	November 1, 2025	2.354	%	Fixed-to-floating rate senior notes	5/1; 11/1	991		—
May 15, 2017	May 15, 2023	2.653	%	Fixed-to-floating rate senior notes	5/15; 11/15⁽¹⁾	753		734
March 7, 2011	March 7, 2021	4.375	%	Senior notes	3/7; 9/7⁽¹⁾	748		731
May 19, 2016	May 19, 2021	1.95	%	Senior notes	5/19; 11/19⁽¹⁾	744		725
May 19, 2016	May 19, 2026	2.65	%	Senior notes	5/19; 11/19⁽¹⁾	741		698
December 3, 2018	December 3, 2029	4.141	%	Fixed-to-floating rate senior notes	6/3; 12/3⁽¹⁾	546		513
December 3, 2018	December 3, 2024	3.776	%	Fixed-to-floating rate senior notes	6/3; 12/3⁽¹⁾	522		507
August 18, 2015	August 18, 2020	Floating-rate		Senior notes	2/18; 5/18; 8/18; 11/18	500		499
April 30, 2007	June 15, 2047	Floating-rate		Junior subordinated debentures	3/15; 6/15; 9/15; 12/15	499		794
November 1, 2019	November 1, 2034	3.031	%	Fixed-to-floating rate senior subordinated notes	5/1; 11/1⁽²⁾	492		—
May 15, 1998	May 15, 2028	Floating-rate		Junior subordinated debentures	2/15; 5/15; 8/15; 11/15	100		150
June 21, 1996	June 15, 2026⁽³⁾	7.35	%	Senior notes	6/15; 12/15	150		150
Parent Company
Long-term finance leases						136		190

Total long-term debt						$	12,509	$	11,093


⁽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 both December 31, 2019 and 2018, the carrying value of long-term debt associated with these fair value hedges was $157 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 may not redeem notes prior to their maturity.

In the fourth quarter of 2019, we completed a cash tender offer for approximately $297 million of our $800 million aggregate principal amount of outstanding floating rate junior subordinated debentures due 2047, resulting in a gain of approximately $44 million. Additionally, in the fourth quarter of 2019, we completed a redemption for approximately $50 million of our $150 million aggregate principal amount of outstanding floating rate junior subordinated debentures due 2028.

Termination of Replacement Capital Covenant

Prior to November 20, 2019, we were subject to a replacement capital covenant dated April 30, 2007 (the Original RCC), as amended by the amendment to replacement capital covenant dated May 13, 2016 (the RCC Amendment and, together with the Original RCC, the Replacement Capital Covenant). Pursuant to the terms of the Replacement Capital Covenant, neither us nor any of our subsidiaries, including State Street Bank, was permitted to repay, redeem or purchase any of the outstanding floating rate junior subordinated debentures due 2047 prior to June 1, 2047 unless certain conditions had been satisfied, except to the extent that (i) we obtained the prior approval of the Federal Reserve, if such approval was then required, and (ii) we had received proceeds, up to specified percentages of the aggregate principal amount repaid or the applicable redemption or purchase price, from the sale or issuance of qualifying securities with characteristics that are the same as, or more equity-like than, the applicable characteristics of the floating rate junior subordinated debentures due 2047 during the 180 days prior to the date of that repayment, redemption or purchase (which period was to be shortened under certain specified circumstances). The Replacement Capital Covenant was a covenant for the benefit of persons buying, holding or selling specified series of our unsecured long-term indebtedness or our depository institution subsidiaries (the Covered Debt). The original Covered Debt under the Replacement Capital Covenant were the outstanding floating rate junior subordinated debentures due 2028.

The Replacement Capital Covenant was terminated automatically without further action on November 20, 2019, following the settlement of the partial redemption of approximately $50 million aggregate principal amount of floating rate junior subordinated debentures due 2028 and the redesignation of our 2.650% Senior Notes due 2026 as Covered Debt for the purposes of the Replacement Capital Covenant, and purchases of the floating rate junior subordinated debentures due 2047 are permissible without issuing qualifying securities under the Replacement Capital Covenant. The Original RCC and the RCC Amendment were included as Exhibit 99.2 and Exhibit 99.3 to our Current Report on Form 8-K, which was filed on November 21, 2019.

Parent Company

As of December 31, 2019 and 2018, long-term finance leases included $136 million and $190 million, respectively, related to our One Lincoln Street headquarters building and related underground parking garage. Refer to Note 20 for additional information.