Line Of Business Information

12 Months Ended

Dec. 31, 2011

Line Of Business Information [Abstract]

Line Of Business Information

Note 24.     Line of Business Information

We have 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.

Investment Servicing provides services for U.S. mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations and endowments worldwide. Products include custody, product-and-participant-level accounting, daily pricing and administration; master trust and master custody; recordkeeping; foreign exchange, brokerage and other trading services; securities finance; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk and compliance analytics to support institutional investors. We provide shareholder services, which include mutual fund and collective investment fund shareholder accounting, through 50%-owned affiliates, Boston Financial Data Services, Inc. and the International Financial Data Services group of companies.

Investment Management, through SSgA, provides a broad range of investment management strategies, specialized investment management advisory services and other financial services, such as securities finance, for corporations, public funds, and other sophisticated investors. Management strategies offered by SSgA include passive and active, such as enhanced indexing and hedge fund strategies, using quantitative and fundamental methods for both U.S. and non-U.S. equity and fixed-income securities. SSgA also offers exchange-traded funds.

Our investment servicing strategy is to focus on total client relationships and the full integration of our products and services across our client base through cross-selling opportunities. In general, a client will use a combination of services, depending on their needs, rather than one product or service. For instance, a custody client may purchase securities finance and cash management services from different business units. Products and services that we provide to our clients are parts of an integrated offering to these clients. We price our products and services on the basis of overall client relationships and other factors; as a result, revenue may not necessarily reflect the stand-alone market price of these products and services within the business lines in the same way it would for independent business entities.

Generally, approximately two-thirds of our consolidated total revenue (fee revenue from investment servicing and investment management, as well as trading services and securities finance activities) is generated by these two business lines. The remaining one-third is composed of processing and other fee revenue, net interest revenue, which is largely generated by the investment of client deposits in a variety of assets, and net gains (losses) related to investment securities. These other revenue types are generally fully allocated to, or reside in, Investment Servicing and Investment Management.

Revenue and expenses are directly charged or allocated to the lines of business through management information systems. Assets and liabilities are allocated according to policies that support management's strategic and tactical goals. Capital is allocated based on risk-weighted assets and management's judgment. Capital allocations may not be representative of the capital that might be required if these lines of business were independent business entities.

The following is a summary of our line of business results. The "Other" column for 2011 represented integration costs associated with acquisitions and restructuring charges associated with our business operations and information technology transformation program ($133 million) and expense control measures ($120 million), more fully described in note 20. The "Other" column for 2010 represented the net loss from sales of investment securities associated with the December 2010 investment portfolio repositioning, more fully described in note 3, and restructuring charges associated with our business operations and information technology transformation program and integration costs associated with acquisitions, both more fully described in note 20. The amounts presented in the "Other" column for 2009 represented net interest revenue earned in connection with our participation in the Federal Reserve's AMLF and integration costs recorded in connection with our 2007 acquisition of Investors Financial. The amounts in the "Other" columns were not allocated to State Street's business lines.

In 2011, management revised its methodology with respect to funds transfer pricing, which is used in the measurement of business unit net interest revenue. Net interest revenue and average assets for 2010 have been restated for comparative purposes to reflect the revised methodology. Amounts for 2009 were not restated.

	Investment Servicing									Management Investment									Other									Total
Years ended December 31,	2011			2010			2009			2011			2010			2009			2011			2010			2009			2011			2010			2009
(Dollars in millions, except where otherwise noted)
Fee revenue:
Servicing fees	$	4,382		$	3,938		$	3,334																				$	4,382		$	3,938		$	3,334
Management fees		—			—			—		$	917		$	829		$	766												917			829			766
Trading services		1,220			1,106			1,094			—			—			—												1,220			1,106			1,094
Securities finance		333			265			387			45			53			183												378			318			570
Processing fees and other		195			225			72			102			124			99												297			349			171
Total fee revenue		6,130			5,534			4,887			1,064			1,006			1,048												7,194			6,540			5,935
Net interest revenue		2,181			2,553			2,489			152			146			68								$	7			2,333			2,699			2,564
Gains (Losses) related to investment securities, net		67			58			141			—			—			—					$	(344	)		—			67			(286	)		141
Total revenue		8,378			8,145			7,517			1,216			1,152			1,116						(344	)		7			9,594			8,953			8,640
Provision for loan losses		—			25			148			—			—			1						—			—			—			25			149
Expenses from operations		5,889			5,430			4,920			900			753			747						—			—			6,789			6,183			5,667
Securities lending charge		—			75			—			—			339			—						—			—			—			414			—
Provision for fixed-income litigation exposure		—			—			—			—			—			250						—			—			—			—			250
Acquisition costs		—			—			—			—			—			—		$	16			89			49			16			89			49
Restructuring charges		—			—			—			—			—			—			253			156			—			253			156			—
Total expenses		5,889			5,505			4,920			900			1,092			997			269			245			49			7,058			6,842			5,966
Income from continuing operations before income taxes	$	2,489		$	2,615		$	2,449		$	316		$	60		$	118		$	(269	)	$	(589	)	$	(42	)	$	2,536		$	2,086		$	2,525
Pre-tax margin		30	%		32	%		33	%		26	%		5	%		11	%											26	%		23	%		29	%
Average assets (in billions)	$	169.4		$	146.9		$	143.7		$	5.4		$	5.1		$	3.1											$	174.8		$	152.0		$	146.8