Processing fees and other revenue increased $9 million over 2003, as a result of improved earnings from unconsolidated affiliates, largely offset by a decrease of $47 million in payments made by Deutsche Bank AG in consideration of net interest revenue earned from GSS customer deposits.
These deposits were held by Deutsche Bank AG until customers and their related deposits were converted to our systems.
In addition, processing fees in 2003 included an unrealized gain of $23 million on the mark-to-market of variable-share repurchase contracts, known as SPACESSM, for shares of our common stock; an other-than-temporary impairment charge of $27 million resulting from the write-down of certain investment securities; and a $13 million loss on sales of certain real estate.
Net gains on sales of available-for-sale securities were $26 million in 2004, up from $23 million in 2003.
Net interest revenue for 2004 increased $49 million from 2003, due to an increase in our average balance sheet driven by a higher level of customer deposits, including the conversion of GSS customers, somewhat offset by lower interest-rate spreads.
The 2004 amount reflected a $19 million cumulative charge to interest revenue, which resulted from a change in effective state tax rate assumptions used for recognition of income from leveraged lease transactions.
We reduced the allowance for loan losses in 2004 by recording an $18 million benefit in the related income statement provision in response to reduced credit exposure and improved credit quality.
## Table 0 ##
Operating expenses were up $137 million from 2003, as higher expenses for salaries and employee benefits, transaction processing, occupancy and other fees were largely offset by decreases in merger, integration, divestiture and restructuring costs.
Operating expenses for 2004 included $62 million of merger and integration costs, compared with $110 million of merger, integration and divestiture costs in 2003.
In addition, 2004 operating expenses included $21 million of restructuring costs related to a reduction in force, down from $296 million in 2003.
Salaries and employee benefits expense increased $226 million for 2004, driven by higher incentive compensation costs resulting from our improved earnings, somewhat offset by a decrease in expenses for costs related to the PAM business prior to its sale.
Information systems and communications expense decreased $24 million from the prior year, primarily the result of the benefits of converting GSS customers to our systems.
Transaction processing services expense increased $84 million from 2003.
These expenses, which are in large part volume-related, include equity trading services and fees related to securities settlement, subcustodian fees and external contract services.
The increase resulted from a higher level of investment activity combined with higher net asset values that impact subcustodian fees.
Occupancy expense increased $63 million from 2003, reflective of our move to our new corporate headquarters, the costs of a new data center, and the recognition of a loss of $16 million from a sub-lease agreement.
Merger and integration costs related to the acquisition of the GSS business were $62 million in 2004, down from $103 million in 2003.
Divestiture costs related to the sale of the PAM business were $7 million in 2003.
Accumulated Other Comprehensive (Loss) Income:
## Table 1 ##
For the year ended December 31, 2005, we realized net losses of $1 million on sales of available-for-sale securities.
Unrealized gains of $1 million were included in other comprehensive income at December 31, 2004, net of deferred taxes of less than $1 million, related to these sales.
For the year ended December 31, 2004, we realized net gains of $26 million.
Unrealized gains of $11 million were included in other comprehensive income at December 31, 2003, net of deferred taxes of $7 million, related to these sales.
For the year ended December 31, 2003, we realized net gains of $23 million.
Unrealized gains of $22 million were included in other comprehensive income at December 31, 2002, net of deferred taxes of $15 million, related to these sales.
Shareholders’ Rights Plan: In 1988, we declared a dividend of one preferred share purchase right for each outstanding share of common stock.
In 1998, the Rights Agreement was amended and restated.
Accordingly, a right may be exercised, under certain conditions, to purchase one eight-hundredths share of a series of participating preferred stock at an exercise price of $132.50, subject to adjustment.
The rights become exercisable if a party acquires or obtains the right to acquire 10% or more of our common stock or after commencement or public announcement of an offer for 10% or more of our common stock.
When exercisable, under certain conditions, each right entitles the holder thereof to purchase shares of common stock, of either State Street or of the acquirer, having a market value of two times the then-current exercise price of that right.
The rights expire in September 2008, and may be redeemed at a price of $.00125 per right, subject to adjustment, at any time prior to expiration or the acquisition of 10% of our common stock.
Under certain circumstances, the rights may be redeemed after they become exercisable and may be subject to automatic redemption.
Note 12.
Equity-Based Compensation We have a 1997 Equity Incentive Plan, or the “1997 Plan,” with 46,800,000 shares of common stock approved for issuance for stock and stock-based awards, including stock options, restricted stock, deferred stock and performance awards.
Other award types are available under the plan, but are not currently utilized.
All stock awards and stock options are awarded at the fair market value of our common stock at the date of grant.
At December 31, 2005, 5,175,000 shares were available for future awards under the 1997 Plan.
We have stock options outstanding from previous plans under which no further grants can be made.
Stock options expire no later than ten years from the date of grant, and the exercise price of non-qualified and incentive stock options may not be less than the fair value of such shares at the date of grant.
Information on stock option activity is provided in the stock options table that follows.
We have a restricted stock program under the 1997 Plan whereby stock certificates are issued at the time of grant, and recipients have dividend and voting rights.
In general, these grants vest over three years.
Awards were 225,000, 196,000 and 138,000 shares for the years ended December 31, 2005, 2004 and 2003, respectively, with a weighted average fair value on grant date of $45.26, $51.39 and $43.82, respectively.
At December 31, 2005, a total of 378,000 restricted shares have been awarded but have not vested under this program.
In connection with our assessment of impairment we recorded gross other-than-temporary impairment of $1.15 billion for 2009, compared to $122 million for 2008.
Of the total recorded, $227 million related to credit and was recognized in our consolidated statement of income.
The remaining $928 million related to factors other than credit, more fully discussed below, and was recognized, net of related taxes, in OCI in our consolidated statement of condition.
The $227 million was composed of $151 million associated with expected credit losses, $54 million related to management’s decision to sell the impaired securities prior to their recovery in value, and $22 million related to adverse changes in the timing of expected future cash flows from the securities.
The majority of the impairment losses related to non-agency securities collateralized by mortgages, for which management concluded had experienced credit losses based on the present value of the securities’ expected future cash flows.
These securities are classified as asset-backed securities in the foregoing investment securities tables.
As described in note 1, management periodically reviews the fair values of investment securities to determine if other-than-temporary impairment has occurred.
This review encompasses all investment securities and includes such quantitative factors as current and expected future interest rates and the length of time that a security’s cost basis has exceeded its fair value, and includes investment securities for which we have issuerspecific concerns regardless of quantitative factors.
Gains and losses related to investment securities were as follows for the years ended December 31:
## Table 2 ##
(1) These losses were recognized as a component of OCI; see note 12.
We conduct periodic reviews to evaluate each security that is impaired.
Impairment exists when the current fair value of an individual security is below its amortized cost basis.
For debt securities available for sale and held to maturity, other-than-temporary impairment is recorded in our consolidated statement of income when management intends to sell (or may be required to sell) securities before they recover in value, or when management expects the present value of cash flows expected to be collected to be less than the amortized cost of the impaired security (a credit loss).
Our review of impaired securities generally includes: ?
the identification and evaluation of securities that have indications of possible other-than-temporary impairment, such as issuer-specific concerns including deteriorating financial condition or bankruptcy; ?
the analysis of expected future cash flows of securities, based on quantitative and qualitative factors; ?
the analysis of the collectability of those future cash flows, including information about past events, current conditions and reasonable and supportable forecasts; ?
the analysis of individual impaired securities, including consideration of the length of time the security has been in an unrealized loss position and the anticipated recovery period; ?
the discussion of evidential matter, including an evaluation of factors or triggers that could cause individual securities to be deemed other-than-temporarily impaired and those that would not support other-than-temporary impairment; and ?
documentation of the results of these analyses.
Factors considered in determining whether impairment is other than temporary include: ?
the length of time the security has been impaired;
Impairment The following table presents net unrealized losses on securities available for sale as of December 31:
## Table 3 ##
The net unrealized amounts presented above excluded the remaining net unrealized losses related to reclassifications of securities available for sale to securities held to maturity.
These unrealized losses related to reclassifications totaled $303 million, or $189 million after-tax, and $523 million, or $317 million after-tax, as of December 31, 2011 and 2010, respectively, and were recorded in accumulated other comprehensive income, or OCI.
Refer to note 12 to the consolidated financial statements included under Item 8.
The decline in these remaining after-tax unrealized losses related to reclassifications from December 31, 2010 to December 31, 2011 resulted primarily from amortization.
We conduct periodic reviews of individual securities to assess whether other-than-temporary impairment exists.
To the extent that other-than-temporary impairment is identified, the impairment is broken into a credit component and a non-credit component.
The credit component is recorded in our consolidated statement of income, and the non-credit component is recorded in OCI to the extent that we do not intend to sell the security.
Our assessment of other-than-temporary impairment involves an evaluation, more fully described in note 3, of economic and security-specific factors.
Such factors are based on estimates, derived by management, which contemplate current market conditions and security-specific performance.
To the extent that market conditions are worse than management’s expectations, other-than-temporary impairment could increase, in particular, the credit component that would be recorded in our consolidated statement of income.
Given the exposure of our investment securities portfolio, particularly mortgage- and asset-backed securities, to residential mortgage and other consumer credit risks, the performance of the U. S.  housing market is a significant driver of the portfolio’s credit performance.
As such, our assessment of other-than-temporary impairment relies to a significant extent on our estimates of trends in national housing prices.
Generally, indices that measure trends in national housing prices are published in arrears.
As of September 30, 2011, national housing prices, according to the Case-Shiller National Home Price Index, had declined by approximately 31.3% peak-to-current.
Overall, management’s expectation, for purposes of its evaluation of other-than-temporary impairment as of December 31, 2011, was that housing prices would decline by approximately 35% peak-to-trough.
The performance of certain mortgage products and vintages of securities continues to deteriorate.
In addition, management continues to believe that housing prices will decline further as indicated above.
The combination of these factors has led to an increase in management’s overall loss expectations.
Our investment portfolio continues to be sensitive to management’s estimates of future cumulative losses.
Ultimately, other-thantemporary impairment is based on specific CUSIP-level detailed analysis of the unique characteristics of each security.
In addition, we perform sensitivity analysis across each significant product type within the non-agency U. S.  residential mortgage-backed portfolio.
We estimate, for example, that other-than-temporary impairment of the investment portfolio could increase by approximately $10 million to $50 million, if national housing prices were to decline by 37% to 39% peak-to-trough, compared to management’s expectation of 35% described above.
This sensitivity estimate is based on a number of factors, including, but not limited to, the level of housing prices and the timing of defaults.
To the extent that such factors differ substantially from management’s current expectations, resulting loss estimates may differ materially from those stated.
Excluding the securities for which other-than-temporary impairment was recorded in 2011, management considers the aggregate decline in fair value of the remaining
SHAREHOLDER RETURN PERFORMANCE PRESENTATION The graph presented below compares the cumulative total shareholder return on State Street's common stock to the cumulative total return of the S&P 500 Index and the S&P Financial Index over a five-year period.
The cumulative total shareholder return assumes the investment of $100 in State Street common stock and in each index on December 31, 2007 at the closing price on the last trading day of 2007, and also assumes reinvestment of common stock dividends.
The S&P Financial Index is a publicly available measure of 80 of the Standard & Poor's 500 companies, representing 26 diversified financial services companies, 22 insurance companies, 17 real estate companies and 15 banking companies.
Comparison of Five-Year Cumulative Total Shareholder Return
## Table 4 ##

<table><tr><td></td><td>2004</td><td>2003</td><td>$ Change</td><td>% Change</td></tr><tr><td>(Dollars in millions)</td><td></td><td></td><td></td><td></td></tr><tr><td>Years ended December 31,</td><td></td><td></td><td></td><td></td></tr><tr><td>Operating Expenses:</td><td></td><td></td><td></td><td></td></tr><tr><td>Salaries and employee benefits</td><td>$1,957</td><td>$1,731</td><td>$226</td><td>13%</td></tr><tr><td>Information systems and communications</td><td>527</td><td>551</td><td>-24</td><td>-4</td></tr><tr><td>Transaction processing services</td><td>398</td><td>314</td><td>84</td><td>27</td></tr><tr><td>Occupancy</td><td>363</td><td>300</td><td>63</td><td>21</td></tr><tr><td>Merger, integration and divestiture costs</td><td>62</td><td>110</td><td>-48</td><td>-44</td></tr><tr><td>Restructuring costs</td><td>21</td><td>296</td><td>-275</td><td>-93</td></tr><tr><td>Other</td><td>431</td><td>320</td><td>111</td><td>35</td></tr><tr><td>Total operating expenses</td><td>$3,759</td><td>$3,622</td><td>$137</td><td>4</td></tr></table>
<table><tr><td> </td><td>  2005 </td><td>2004 </td><td>2003 </td></tr><tr><td>(Dollars in millions) </td><td></td><td></td><td></td></tr><tr><td>Foreign currency translation</td><td>$73</td><td>$213</td><td>$128</td></tr><tr><td>Unrealized gain (loss) on hedge of net foreign investment in subsidiaries</td><td>11</td><td>-26</td><td>–</td></tr><tr><td>Unrealized (loss) gain on available-for-sale securities</td><td>-285</td><td>-56</td><td>74</td></tr><tr><td>Minimum pension liability</td><td>-26</td><td>-26</td><td>–</td></tr><tr><td>Unrealized loss on cash flow hedges</td><td>-4</td><td>-13</td><td>-10</td></tr><tr><td>Total</td><td>$-231</td><td>$92</td><td>$192</td></tr></table>
<table><tr><td>(In millions)</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Gross gains from sales of available-for-sale securities</td><td>$418</td><td>$100</td><td>$24</td></tr><tr><td>Gross losses from sales of available-for-sale securities</td><td>-50</td><td>-32</td><td>-17</td></tr><tr><td>Gross losses from other-than-temporary impairment</td><td>-1,155</td><td>-122</td><td>-34</td></tr><tr><td>Losses not related to credit<sup>-1</sup></td><td>928</td><td>—</td><td>—</td></tr><tr><td>Net impairment losses</td><td>-227</td><td>-122</td><td>-34</td></tr><tr><td>Gains (Losses) related to investment securities, net</td><td>$141</td><td>$-54</td><td>$-27</td></tr></table>
<table><tr><td>(In millions)</td><td>2011</td><td>2010</td></tr><tr><td>Fair value</td><td>$99,832</td><td>$81,881</td></tr><tr><td>Amortized cost</td><td>100,013</td><td>82,329</td></tr><tr><td>Net unrealized loss, pre-tax</td><td>$-181</td><td>$-448</td></tr><tr><td>Net unrealized loss, after-tax</td><td>$-113</td><td>$-270</td></tr></table>
<table><tr><td></td><td>2007</td><td>2008</td><td>2009</td><td>2010</td><td>2011</td><td>2012</td></tr><tr><td>State Street Corporation</td><td>$100</td><td>$49</td><td>$55</td><td>$58</td><td>$52</td><td>$61</td></tr><tr><td>S&P 500 Index</td><td>100</td><td>63</td><td>80</td><td>92</td><td>94</td><td>109</td></tr><tr><td>S&P Financial Index</td><td>100</td><td>45</td><td>52</td><td>59</td><td>49</td><td>63</td></tr></table>

Question: what is the roi of an investment in state street corporation from 2007 to 2009?
Answer: -0.45