State Street Corporation

STT

US8574771031

Investment Management & Fund Operators

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Apr. 17	State Street Said to Be Mulling Acquisition of Societe Generale's Custody Business	MT
Apr. 17	State Street Said to Be Mulling Acquisition of Societe Generale's Custody Business	MT

State Street : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

October 23, 2020 at 11:42 am EDT

GENERAL

State Street Corporation, referred to as the Parent Company, is a financial
holding company organized in 1969 under the laws of the Commonwealth of
Massachusetts. Our executive offices are located at One Lincoln Street, Boston,
Massachusetts 02111 (telephone (617) 786-3000). For purposes of this Quarterly
Report on Form 10-Q for the quarter ended September 30, 2020 (Form 10-Q), unless
the context requires otherwise, references to "State Street," "we," "us," "our"
or similar terms mean State Street Corporation and its subsidiaries on a
consolidated basis. The Parent Company is a source of financial and managerial
strength to our subsidiaries. Through our subsidiaries, including our principal
banking subsidiary, State Street Bank and Trust Company, referred to as State
Street Bank, we provide a broad range of financial products and services to
institutional investors worldwide, with $36.64 trillion of AUC/A and $3.15
trillion of AUM as of September 30, 2020.
As of September 30, 2020, we had consolidated total assets of $272.08 billion,
consolidated total deposits of $197.51 billion, consolidated total shareholders'
equity of $25.56 billion and 38,979 employees. We operate in more than 100
geographic markets worldwide, including in the U.S., Canada, Europe, the Middle
East and Asia.
Our operations are organized into two lines of business, Investment Servicing
and Investment Management, which are defined based on products and services
provided.
Additional information about our lines of business is provided in Line of
Business Information in this Management's Discussion and Analysis and Note 17 to
the consolidated financial statements in this Form 10-Q.
This Management's Discussion and Analysis is part of the Form 10-Q and updates
the Management's Discussion and Analysis in our 2019 Annual Report on Form 10-K
for the year ended December 31, 2019 previously filed with the SEC (2019 Form
10-K). You should read the financial information contained in this Management's
Discussion and Analysis and elsewhere in this Form 10-Q in conjunction with the
financial and other information contained in our 2019 Form 10-K. Certain
previously reported amounts presented in this Form 10-Q have been reclassified
to conform to current-period presentation.
We prepare our consolidated financial statements in conformity with U.S. GAAP.
The preparation of financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions in its application of certain
accounting policies that materially affect the reported amounts of assets,
liabilities, equity, revenue and expenses.
The significant accounting policies that require us to make judgments, estimates
and assumptions that are difficult, subjective or complex about matters that are
uncertain and may change in subsequent periods include:
•accounting for fair value measurements;
•impairment of goodwill and other intangible assets;
•contingencies; and
•allowance for credit losses.
These significant accounting policies require the most subjective or complex
judgments, and underlying estimates and assumptions could be subject to revision
as new information becomes available. For additional information about these
significant accounting policies refer to pages 115 to 117, "Significant
Accounting Estimates" included under Item 7, Management's Discussion and
Analysis of Financial Condition and Results of Operations, in our 2019 Form 10-K
and Significant Accounting Estimates in Management's Discussion and Analysis of
Financial Condition and Results of Operations in this Form 10-Q. Upon evaluating
our accounting policies in light of our adoption of CECL on January 1, 2020, we
included allowance for credit losses as one of our significant accounting
policies. Other than including that additional significant policy, we did not
change these significant accounting policies in the first nine months of 2020.
Certain financial information provided in this Form 10-Q, including in this
Management's Discussion and Analysis, is prepared on both a U.S. GAAP, or
reported basis, and a non-GAAP basis. We measure and compare certain financial
information on a non-GAAP basis, including information that management uses in
evaluating our business and activities.
Non-GAAP financial information should be considered in addition to, and not as a
substitute for or superior to, financial information prepared in conformity with
U.S. GAAP. Any non-GAAP financial information presented in this Form 10-Q,
including this Management's Discussion and Analysis, is reconciled to its most
directly comparable U.S. GAAP-basis measure.
We further believe that our presentation of FTE NII, a non-GAAP measure, which
reports non-taxable revenue, such as interest income associated with tax-exempt
investment securities, on a FTE basis,
                                                    State Street

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