Shareholders' Equity

12 Months Ended

Dec. 31, 2011

Shareholders' Equity [Abstract]

Shareholders' Equity

Note 12. Shareholders' Equity

In 2011, we issued 5,001 shares, or $500 million, of our non-cumulative perpetual preferred stock, series A, $100,000 liquidation preference per share, in connection with the remarketing of our 6.001% junior subordinated debentures due 2042 originally issued to State Street Capital Trust III in 2008. The preferred stock was purchased by State Street Capital Trust III using the ultimate proceeds from the remarketing transaction, and now constitutes the principal asset of the trust. The preferred stock qualifies for inclusion in tier 1 regulatory capital under federal regulatory capital guidelines. Additional information about the remarketing transaction is provided in note 9. Quarterly dividends on the preferred stock are calculated at an annual rate equal to the relevant three-month LIBOR plus 4.99%, with such dividend rate applied to the outstanding liquidation preference of the preferred stock. Dividends are non-cumulative, and are accrued when declared.

In 2011, our Board of Directors approved a new program authorizing the purchase by us of up to $675 million of our common stock in 2011. This new program superseded the Board's prior authorization under which 13.25 million common shares were available for purchase as of December 31, 2010. During the period from April 1, 2011 through December 31, 2011, we purchased approximately 16.3 million shares of our common stock, at an average cost per share of approximately $41.38 and an aggregate cost of approximately $675 million. As of December 31, 2011, no purchase authority remained under this program. No shares of our common stock were purchased by us in 2010 or 2009. We may employ third-party broker/dealers to acquire shares on the open market in connection with our common stock purchase programs.

Our common shares may be acquired for other deferred compensation plans, held by an external trustee, that are not part of our common stock purchase program. As of December 31, 2011 and 2010, approximately 406,000 and 420,000 shares, respectively, had been purchased and were held in trust. These shares are recorded as treasury stock in our consolidated statement of condition.

The following table presents the after-tax components of accumulated other comprehensive loss as of December 31:

(In millions)	2011			2010			2009
Foreign currency translation				$	216		$	281
Net unrealized loss on hedges of net investments in non-U.S. subsidiaries	$	(14	)		(14	)		(14	)
Net unrealized gain (loss) on available-for-sale securities portfolio		110			(90	)		(1,001	)
Net unrealized loss related to reclassified available-for-sale securities		(189	)		(317	)		(635	)
Net unrealized loss on available-for-sale securities		(79	)		(407	)		(1,636	)
Net unrealized loss on available-for-sale securities designated in fair value hedges		(210	)		(135	)		(113	)
Expected losses from other-than-temporary impairment on available-for-sale securities related to factors other than credit		(17	)		(17	)		(159	)
Expected losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit		(86	)		(111	)		(387	)
Net unrealized loss on cash flow hedges		(5	)		(11	)		(18	)
Minimum pension liability		(248	)		(210	)		(192	)
Total	$	(659	)	$	(689	)	$	(2,238	)

For the year ended December 31, 2011, we realized net gains of $140 million from sales of available-for-sale securities. Unrealized pre-tax gains of $76 million were included in other comprehensive income, or OCI, at December 31, 2010, net of deferred taxes of $30 million, related to these sales.

For the year ended December 31, 2010, we realized net losses of $55 million from sales of investment securities. Unrealized pre-tax losses of $728 million were included in OCI at December 31, 2009, net of deferred taxes of $291 million, related to these sales.

For the year ended December 31, 2009, we realized net gains of $368 million from sales of available-for-sale securities. Unrealized pre-tax gains of $46 million were included in OCI at December 31, 2008, net of deferred taxes of $18 million, related to these sales.