Line of Business Information

6 Months Ended

Jun. 30, 2011

Line of Business Information

Line of Business Information

Note 16.    Line of Business Information

We report two lines of business: Investment Servicing and Investment Management. Given our services and management organization, the results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry. Information about revenue, expense and capital allocation methodologies is provided in note 24 to the consolidated financial statements included in our 2010 Form 10-K.

The following tables present our line-of-business results. The "Other" column for 2011 represents integration costs associated with acquisitions and restructuring charges associated with our business operations and information technology transformation program. The "Other" column for 2010 represents integration costs. The amounts in the "Other" columns were not allocated to State Street's business lines. During the first three months of 2011, management revised its methodology with respect to funds transfer pricing, which is used in the measurement of business unit net interest revenue. Prior-year net interest revenue and average assets have been restated for comparative purposes to reflect the revised methodology.

	Three Months Ended June 30,
(Dollars in millions, except where otherwise noted)	Investment Servicing						Investment Management						Other						Total
	2011			2010			2011			2010			2011			2010			2011		2010
Fee revenue:
Servicing fees	$	1,124		$	973														$	1,124	$	973
Management fees		—			—		$	250		$	201									250		201
Trading services		311			326			—			—									311		326
Securities finance		116			84			21			25									137		109
Processing fees and other		53			63			17			24									70		87
Total fee revenue		1,604			1,446			288			250									1,892		1,696
Net interest revenue		519			613			53			45									572		658
Gains (Losses) related to investment securities, net		27			(50	)		—			—									27		(50	)
Total revenue		2,150			2,009			341			295									2,491		2,304
Provision for loan losses		2			10			—			—									2		10
Expenses from operations		1,538			1,291			219			198									1,757		1,489
Acquisition and restructuring costs		—			—			—			—		$	17		$	41			17		41
Securities lending charge		—			75			—			339			—			—			—		414
Total expenses		1,538			1,366			219			537			17			41			1,774		1,944
Income (Loss) from continuing operations before income taxes	$	610		$	633		$	122		$	(242	)	$	(17	)	$	(41	)	$	715	$	350
Pre-tax margin		28	%		32	%		36	%		(82	)%
Average assets (in billions)	$	158.0		$	145.2		$	6.3		$	5.8								$	164.3	$	151.0

	Six Months Ended June 30,
(Dollars in millions, except where otherwise noted)	Investment Servicing						Investment Management						Other						Total
	2011			2010			2011			2010			2011			2010			2011		2010
Fee revenue:
Servicing fees	$	2,219		$	1,868														$	2,219	$	1,868
Management fees		—			—		$	486		$	412									486		412
Trading services		613			568			—			—									613		568
Securities finance		175			142			28			39									203		181
Processing fees and other		122			153			40			54									162		207
Total fee revenue		3,129			2,731			554			505									3,683		3,236
Net interest revenue		1,054			1,240			95			79									1,149		1,319
Gains related to investment securities, net		20			45			—			—									20		45
Total revenue		4,203			4,016			649			584									4,852		4,600
Provision for loan losses		1			25			—			—									1		25
Expenses from operations		2,991			2,639			449			416									3,440		3,055
Acquisition and restructuring costs		—			—			—			—		$	36		$	54			36		54
Securities lending charge		—			75			—			339			—			—			—		414
Total expenses		2,991			2,714			449			755			36			54			3,476		3,523
Income (Loss) from continuing operations before income taxes	$	1,211		$	1,277		$	200		$	(171	)	$	(36	)	$	(54	)	$	1,375	$	1,052
Pre-tax margin		29	%		32	%		31	%		(29	)%
Average assets (in billions)	$	155.7		$	141.6		$	5.7		$	5.4								$	161.4	$	147.0