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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
For additional information on the nature of services and our revenue from contracts with customers, including revenues associated with both our Investment Servicing and Investment Management lines of business, refer to pages 177 to 180 in Note 25 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2022 Form 10-K.
Revenue by category
In the following tables, revenue is disaggregated by our two lines of business and by revenue stream for which the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Three Months Ended September 30, 2023
Investment ServicingInvestment ManagementOtherTotal
(Dollars in millions)Topic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotal2023
Servicing fees$1,234 $— $1,234 $— $— $— $— $— $— $1,234 
Management fees— — — 479 — 479 — — — 479 
Foreign exchange trading services 84 194 278 35 — 35 — — — 313 
Securities finance53 45 98 — 5 5 — — — 103 
Software and processing fees 142 46 188 — — — — — — 188 
Other fee revenue— 41 41 — 3 3 — — — 44 
Total fee revenue1,513 326 1,839 514 8 522 — — — 2,361 
Net interest income— 620 620 — 4 4 — — — 624 
Total other income— — — — — — — (294)(294)(294)
Total revenue$1,513 $946 $2,459 $514 $12 $526 $— $(294)$(294)$2,691 
Nine Months Ended September 30, 2023
Investment ServicingInvestment ManagementOtherTotal
(Dollars in millions)Topic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotal2023
Servicing fees$3,710 $— $3,710 $— $— $— $— $— $— $3,710 
Management fees— — — 1,397 — 1,397 — — — 1,397 
Foreign exchange trading services 260 615 875 83 — 83 — — — 958 
Securities finance177 133 310 — 19 19 — — — 329 
Software and processing fees 436 138 574 — — — — — — 574 
Other fee revenue— 124 124 — 23 23 — — — 147 
Total fee revenue4,583 1,010 5,593 1,480 42 1,522 — — — 7,115 
Net interest income— 2,069 2,069 — 12 12 — — — 2,081 
Total other income— — — — — — — (294)(294)(294)
Total revenue$4,583 $3,079 $7,662 $1,480 $54 $1,534 $— $(294)$(294)$8,902 
Three Months Ended September 30, 2022
Investment ServicingInvestment ManagementOtherTotal
(Dollars in millions)Topic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotal2022
Servicing fees$1,219 $— $1,219 $— $— $— $— $— $— $1,219 
Management fees— — — 472 — 472 — — — 472 
Foreign exchange trading services88 205 293 26 — 26 — — — 319 
Securities finance60 45 105 — 5 5 — — — 110 
Software and processing fees138 46 184 — — — — — — 184 
Other fee revenue— 12 12 — (17)(17)— — — (5)
Total fee revenue1,505 308 1,813 498 (12)486 — — — 2,299 
Net interest income— 663 663 — (3)(3)— — — 660 
Total other income— — — — — — — — — — 
Total revenue$1,505 $971 $2,476 $498 $(15)$483 $— $— $— $2,959 
Nine Months Ended September 30, 2022
Investment ServicingInvestment ManagementOtherTotal
(Dollars in millions)Topic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotal2022
Servicing fees$3,884 $— $3,884 $— $— $— $— $— $— $3,884 
Management fees— — — 1,482 — 1,482 — — — 1,482 
Foreign exchange trading services279 669 948 61 — 61 — — — 1,009 
Securities finance175 125 300 — 13 13 — — — 313 
Software and processing fees427 146 573 — — — — — — 573 
Other fee revenue— 46 46 — (65)(65)— — — (19)
Total fee revenue4,765 986 5,751 1,543 (52)1,491 — — — 7,242 
Net interest income— 1,760 1,760 — (7)(7)— — — 1,753 
Total other income— (2)(2)— — — — — — (2)
Total revenue$4,765 $2,744 $7,509 $1,543 $(59)$1,484 $— $— $— $8,993 
Contract balances and contract costs
As of September 30, 2023 and December 31, 2022, net receivables of $2.87 billion and $2.63 billion, respectively, are included in accrued interest and fees receivable, representing amounts billed or currently billable related to revenue from contracts with customers. As performance obligations are satisfied, we have an unconditional right to payment and billing is generally performed monthly or quarterly; therefore, we do not have significant contract assets.
We had $135 million and $138 million of deferred revenue as of September 30, 2023 and December 31, 2022, respectively. Deferred revenue is a contract liability which represents payments received and accounts receivable recorded in advance of providing services and is included in accrued expenses and other liabilities in the consolidated statement of condition. In the three months ended September 30, 2023, we recognized revenue of $64 million relating to deferred revenue of $150 million as of June 30, 2023. In the nine months ended September 30, 2023, we recognized revenue of $103 million relating to deferred revenue of $138 million as of December 31, 2022.
Transaction price allocated to the remaining performance obligations represents future, non-cancelable contracted revenue that has not yet been recognized, inclusive of deferred revenue that has been invoiced and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. As of September 30, 2023, total remaining non-cancelable performance obligations for services and products not yet delivered, primarily comprised of software license sales and SaaS, were approximately $1.5 billion. We expect to recognize approximately half of this amount in revenue over the next three years, with the remainder to be recognized thereafter.
No adjustments are made to the promised amount of consideration for the effects of a significant financing component as the period between when we transfer a promised service to a customer and when the customer pays for that service is expected to be one year or less.