Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2024

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 179 to 182 in Note 25 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2023 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 March 31, 2024
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions)	Topic 606 revenue		All other revenue		Total		Topic 606 revenue		All other revenue		Total		Topic 606 revenue		All other revenue		Total		2024
Servicing fees	$	1,228	$	—	$	1,228	$	—	$	—	$	—	$	—	$	—	$	—	$	1,228
Management fees	—		—		—		510		—		510		—		—		—		510
Foreign exchange trading services	95		213		308		23		—		23		—		—		—		331
Securities finance	47		43		90		—		6		6		—		—		—		96
Software and processing fees	155		52		207		—		—		—		—		—		—		207
Other fee revenue	—		43		43		—		7		7		—		—		—		50
Total fee revenue	1,525		351		1,876		533		13		546		—		—		—		2,422
Net interest income	—		711		711		—		5		5		—		—		—		716
Total revenue	$	1,525	$	1,062	$	2,587	$	533	$	18	$	551	$	—	$	—	$	—	$	3,138
	Three Months Ended March 31, 2023
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions)	Topic 606 revenue		All other revenue		Total		Topic 606 revenue		All other revenue		Total		Topic 606 revenue		All other revenue		Total		2023
Servicing fees	$	1,217	$	—	$	1,217	$	—	$	—	$	—	$	—	$	—	$	—	$	1,217
Management fees	—		—		—		457		—		457		—		—		—		457
Foreign exchange trading services	90		231		321		21		—		21		—		—		—		342
Securities finance	63		40		103		—		6		6		—		—		—		109
Software and processing fees	120		45		165		—		—		—		—		—		—		165
Other fee revenue	—		28		28		—		17		17		—		—		—		45
Total fee revenue	1,490		344		1,834		478		23		501		—		—		—		2,335
Net interest income	—		762		762		—		4		4		—		—		—		766
Total revenue	$	1,490	$	1,106	$	2,596	$	478	$	27	$	505	$	—	$	—	$	—	$	3,101

Contract balances and contract costs

As of March 31, 2024 and December 31, 2023, net receivables of $2.90 billion and $2.72 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 $133 million of deferred revenue as of March 31, 2024 and December 31, 2023, 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 first quarter of 2024, we recognized revenue of $63 million relating to deferred revenue of $133 million as of December 31, 2023.

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 March 31, 2024, total remaining non-cancelable performance obligations for services and products not yet delivered, primarily comprised of software license sales and SaaS, were approximately $1.53 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.