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  "documentTitle": "State Street Corporation (STT)",
  "authorId": "06_Trian_Partners",
  "authorName": "Trian Partners",
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  "presentationDate": "2011-10-16 00:00:00",
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      "text": "Average multiple was 27.2x forward earnings, ~250% higher than State Street's current multiple of 8.0x forward earnings.",
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      "text": "Integration & Restructuring: Approximately $900mm invested to improve margins; margins have declined. Investors skeptical of latest $575-$625mm initiative.",
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      "text": "Capital Expenditures: Over $2bn spent from 2006-2010. Compensation and non-compensation expenses have increased as a percentage of net revenue since 2006.",
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      "text": "Massive Share Issuances to Offset Capital Losses: $6.1bn recorded loss on conduits. Shareholders permanently diluted 30% by two share issuances in 2008 and 2009.",
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      "text": "Acquisitions: Approximately $8bn ($16 per share; ~45% of current market capitalization) spent on acquisitions. Average multiple was 27.2x forward earnings, ~250% higher than State Street's current multiple of 8.0x.",
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      "text": "capital allocation: $11bn",
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      "text": "In the past 5 years, State Street deployed approximately $11bn of shareholder capital into acquisitions, integration expenses, restructuring charges and capital expenditures. Additionally, it recorded a $6.1bn pre-tax charge associated with the consolidation of conduit assets in 2009, of which we estimate ~$3.0-$3.5bn was ultimately realized.",
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      "text": "Source: SEC Filings, Bloomberg Estimates, State Street investor conference calls.",
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      "text": "Capital Allocation Decisions Have Also Impaired Value",
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