Line Of Business Information

9 Months Ended

Sep. 30, 2011

Line Of Business Information

Line Of Business Information

Note 17. 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.

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 September 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	$	1,106		$	1,006														$	1,106	$	1,006
Management fees		—			—		$	229		$	196									229		196
Trading services		334			228			—			—									334		228
Securities finance		77			62			8			6									85		68
Processing fees and other		57			39			33			32									90		71
Total fee revenue		1,574			1,335			270			234									1,844		1,569
Net interest revenue		539			688			39			36									578		724
Gains related to investment securities, net		5			17			—			—									5		17
Total revenue		2,118			2,040			309			270									2,427		2,310
Provision for loan losses		—			1			—			—									—		1
Expenses from operations		1,477			1,341			236			163									1,713		1,504
Acquisition and restructuring costs		—			—			—			—		$	85		$	23			85		23
Total expenses		1,477			1,341			236			163			85			23			1,798		1,527
Income from continuing operations before income taxes	$	641		$	698		$	73		$	107		$	(85	)	$	(23	)	$	629	$	782
Pre-tax margin		30	%		34	%		24	%		40	%
Average assets (in billions)	$	175.9		$	149.4		$	5.1		$	4.6								$	181.0	$	154.0

	Nine Months Ended September 30,
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions, except where otherwise noted)	2011			2010			2011			2010			2011			2010			2011		2010
Fee revenue:
Servicing fees	$	3,325		$	2,874														$	3,325	$	2,874
Management fees		—			—		$	715		$	608									715		608
Trading services		947			796			—			—									947		796
Securities finance		252			204			36			45									288		249
Processing fees and other		179			192			73			86									252		278
Total fee revenue		4,703			4,066			824			739									5,527		4,805
Net interest revenue		1,593			1,928			134			115									1,727		2,043
Gains related to investment securities, net		25			62			—			—									25		62
Total revenue		6,321			6,056			958			854									7,279		6,910
Provision for loan losses		1			26			—			—									1		26
Expenses from operations		4,468			3,980			685			579									5,153		4,559
Acquisition and restructuring costs		—			—			—			—		$	121		$	77			121		77
Securities lending charge		—			75			—			339			—			—			—		414
Total expenses		4,468			4,055			685			918			121			77			5,274		5,050
Income (Loss) from continuing operations before income taxes	$	1,852		$	1,975		$	273		$	(64	)	$	(121	)	$	(77	)	$	2,004	$	1,834
Pre-tax margin		29	%		33	%		28	%		nm
Average assets (in billions)	$	162.5		$	144.3		$	5.5		$	5.1								$	168.0	$	149.4

nm - not meaningful