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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
We account for revenue from contracts with customers in accordance with ASC 606. The amount of revenue that we recognize is measured based on the consideration specified in contracts with our customers, and excludes taxes collected from customers subsequently remitted to governmental authorities. We recognize revenue when a performance obligation is satisfied over time as the services are performed or at a point in time depending on the nature of the services provided as further discussed below. Revenue recognition guidance related to contracts with customers excludes our NII, revenue earned on security lending transactions entered into as principal, realized gains/losses on securities, revenue earned on foreign exchange activity, loans and related fees, and gains/losses on hedging and derivatives, to which we apply other applicable U.S. GAAP guidance.
For contracts with multiple performance obligations, or contracts that have been combined, we allocate the contracts' transaction price to each performance obligation using our best estimate of the standalone selling price.
Our contractual fees are negotiated on a customer by customer basis and are representative of standalone selling price utilized for allocating revenue when there are multiple performance obligations.
Substantially all of our services are provided as a distinct series of daily performance obligations that the customer simultaneously benefits from as they are performed. Payments may be made to third party service providers and the expense is recognized gross when we control those services as we are deemed the principal.
Contract durations may vary from short- to long-term or may be open ended. Termination notice periods are in line with general market practice and typically do not include termination penalties. Therefore, for substantially all of our revenues, the duration of the contract and the enforceable rights and obligations do not extend beyond the services that are performed daily or at the transaction level. In instances where we have substantive termination penalties, the duration of the contract may extend through the date of substantive termination penalties.
Investment Servicing
Revenue from contracts with customers related to servicing fees is recognized over time as our customers benefit from the custody, administration, accounting, transfer agency and other related asset services as they are performed. At contract inception, no revenue is estimated as the fees are dependent on assets under custody and/or administration and/or actual transactions which are susceptible to market factors outside of our control. Therefore, revenue is recognized using a time-based output method as the customers benefit from the services over time and as the assets under custody or transactions are known or determinable during each reporting period based on contractual fee schedules. Payments made to third party service providers, such as sub-custodians, are generally recognized gross as we control those services and are deemed to be a principal in such arrangements.
Foreign exchange trading services revenue includes revenue generated from providing access and use of electronic trading platforms and other trading, transition management and brokerage services. Electronic FX services are dependent on the volume of actual transactions initiated through our electronic exchange platforms. Revenue is recognized over time using a time-based measure as access to, and use of, the electronic exchange platforms is made available to the customer and the activity is determinable. Revenue related to other trading, transition management and brokerage services is recognized when the customer obtains the benefit of such services which may be over time or at a point in time upon trade execution.
Securities finance revenue is related to services for providing agency lending programs to State Street Global Advisors managed investment funds and third-party investment managers and asset owners. This securities finance revenue is recognized over time using a time-based measure as our customers benefit from these lending services.
Revenue related to the front office solutions provided by CRD is primarily driven by the sale of licenses and SaaS arrangements, including professional services such as consulting and implementation services, software support and maintenance. Revenue for a sale of software to be installed on premise is recognized at a point in time when the customer benefits from obtaining access to and use of the software license. Revenue for a SaaS related arrangement is recognized over time as services are provided.
Investment Management
Revenue from contracts with customers related to investment management, investment research and investment advisory services provided through State Street Global Advisors is recognized over time as our customers benefit from the services as they are performed. Substantially all of our investment management fees are determined by the value of assets under management and the investment strategies employed. At contract inception, no revenue is estimated as the fees are dependent on assets under management which are susceptible to market factors outside of our control.
Therefore, substantially all of our Investment Management services revenue is recognized using a time-based output method as the customers benefit from the services over time and as the assets under management are known or determinable during each reporting period based on contractual fee schedules. Payments made to third party service providers, such as payments to others in unitary fee arrangements, are generally recognized on a gross basis when State Street Global Advisors controls those services and is deemed to be a principal in such transactions.
Revenue by category
In the following table, 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. The amounts in the “Other” columns were not allocated to our business lines.
Year Ended December 31, 2023
Investment ServicingInvestment ManagementOtherTotal
(Dollars in millions)Topic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotal2023
Servicing fees$4,922 $— $4,922 $— $— $— $— $— $— $4,922 
Management fees— — — 1,876 — 1,876 — — — 1,876 
Foreign exchange trading services 344 796 1,140 125 — 125 — — — 1,265 
Securities finance225 177 402 — 24 24 — — — 426 
Software and processing fees 627 184 811 — — — — — — 811 
Other fee revenue— 145 145 35 35 — — — 180 
Total fee revenue6,118 1,302 7,420 2,001 59 2,060 — — — 9,480 
Net interest income— 2,740 2,740 — 19 19 — — — 2,759 
Total other income— — — — — — — (294)(294)(294)
Total revenue$6,118 $4,042 $10,160 $2,001 $78 $2,079 $— $(294)$(294)$11,945 
Year Ended December 31, 2022
Investment ServicingInvestment ManagementOtherTotal
(Dollars in millions)Topic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotal2022
Servicing fees$5,087 $— $5,087 $— $— $— $— $— $— $5,087 
Management fees— — — 1,939 — 1,939 — — — 1,939 
Foreign exchange trading services 363 908 1,271 82 — 82 — 23 23 1,376 
Securities finance233 164 397 — 19 19 — — — 416 
Software and processing fees 599 190 789 — — — — — — 789 
Other fee revenue— 46 46 (47)(47)— — — (1)
Total fee revenue6,282 1,308 7,590 2,021 (28)1,993 — 23 23 9,606 
Net interest income— 2,551 2,551 — (7)(7)— — — 2,544 
Total other income— (2)(2)— — — — — — (2)
Total revenue$6,282 $3,857 $10,139 $2,021 $(35)$1,986 $— $23 $23 $12,148 
Year Ended December 31, 2021
Investment ServicingInvestment ManagementOtherTotal
(Dollars in millions)Topic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotalTopic 606 revenueAll other revenueTotal2021
Servicing fees$5,531 $— $5,531 $— $— $— $— $— $— $5,531 
Management fees— — — 2,053 — 2,053 — — — 2,053 
Foreign exchange trading services342 807 1,149 62 — 62 — — — 1,211 
Securities finance235 167 402 — 14 14 — — — 416 
Software and processing fees535 203 738 — — — — — — 738 
Other fee revenue— 59 59 — 4 4 — — — 63 
Total fee revenue6,643 1,236 7,879 2,115 18 2,133 — — — 10,012 
Net interest income— 1,919 1,919 — (14)(14)— — — 1,905 
Total other income— (1)(1)— — — — 111 111 110 
Total revenue$6,643 $3,154 $9,797 $2,115 $4 $2,119 $— $111 $111 $12,027 
Contract balances and contract costs
As of December 31, 2023 and 2022, net receivables of $2.72 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 $133 million and $138 million of deferred revenue as of December 31, 2023 and 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 year ended December 31, 2023, we recognized revenue of $122 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 December 31, 2023, total remaining non-cancelable performance obligations for services and products not yet delivered, primarily consisting of software license sales and SaaS, were approximately $1.52 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.