The following is a summary of line of business results.
These results exclude the income (loss) from discontinued operations related to our previously discussed divestiture of Bel Air.
The “Other/One-Time” column for 2005 includes the additional gain from our sale of the Private Asset Management business, and for 2004, includes merger and integration costs related to the GSS acquisition.
## Table 0 ##
## Table 1 ##
Investment Servicing The 14% increase in total revenue from 2005 was primarily driven by increases in servicing and trading services fees and securities finance revenue, as well as a 19% increase in net interest revenue, slightly offset by a decline in processing fees and other revenue.
Servicing fees were up from 2005 due to net new business from existing and new customers, higher equity valuations and higher customer transaction volumes.
The increase in trading services revenue reflected a higher dollar volume of foreign exchange trades for customers and a higher volume of fixed income transition management business.
Processing fees and other revenue declined from 2005, partly as a result of a decline in fees from Deutsche Bank AG as GSS customer deposits were converted to our systems.
Servicing and trading services fees and gains (losses) on sales of available-for-sale securities for our Investment Servicing business line are identical to the respective consolidated results.
Refer to the “Servicing Fees,” “Trading Services” and “Gains (Losses) on Sales of Available-For-Sale Securities, Net” captions in the “Total Revenue” section of this Management’s Discussion and Analysis for a more in-depth discussion.
A discussion of processing fees and other revenue is provided under the caption “Processing Fees and Other” in the “Total Revenue” section.
Net interest revenue for 2006 increased 19% from 2005 due to an increase in average interest-earning assets, as well as higher yields on our investment securities portfolio.
The higher yields were the result of a repositioning program begun in late 2004 and substantially completed in the second half of 2006, which is further discussed under the caption “Net Interest Revenue” in the “Total Revenue” section of this
other short-term borrowings.
Additional information about deposits, federal funds purchased, securities sold under repurchase agreements and other short-term borrowings is in Notes 7 and 8 of the “Notes to Consolidated Financial Statements,” included in this Form 10-K under Item 8.
The table does not include obligations related to derivative contracts, because the amounts included in our consolidated statement of condition at December 31, 2006 related to derivative contracts do not represent the amounts that may ultimately be paid under the contracts.
Additional information about derivative contracts is in Note 15 of the “Notes to Consolidated Financial Statements” included in this Form 10-K under Item 8.
We have obligations under pension and other postretirement benefit plans, which are more fully described in Note 17 of the “Notes to Consolidated Financial Statements,” which are not included in the above table.
Additional information about contractual cash obligations related to long-term debt and operating and capital leases is in Notes 9 and 18 of the “Notes to Consolidated Financial Statements.
” The consolidated statement of cash flows, included in this Form 10-K under Item 8, provides additional liquidity information.
OTHER COMMERCIAL COMMITMENTS
## Table 2 ##
(1) Amounts committed are reported net of participations.
Additional information about the commercial commitments disclosed in this section is in Note 10 of the “Notes to Consolidated Financial Statements” included in this Form 10-K under Item 8.
Risk Management The global scope of our business activities requires that we balance what we perceive to be the primary risks in our businesses with a comprehensive and well-integrated risk management function.
The measurement, monitoring and mitigation of risks are essential to the financial performance and successful management of State Street’s businesses.
These risks, if not effectively managed, can result in current losses to State Street as well as erosion of our capital and damage to our reputation.
Our systematic approach also allows for a more precise assessment of risks within a framework for evaluating opportunities for the prudent use of capital.
We have a disciplined approach to risk management that involves all levels of management.
The Board provides extensive review and oversight of State Street’s overall risk management programs, including the approval of key risk management policies and the periodic review of State Street’s key risk indicators.
These indicators are designed to identify major business activities of State Street with significant risk content, and to establish quantifiable thresholds for risk measurement.
Key risk indicators are reported regularly to the Executive Committee of the Board, and are reviewed periodically for appropriateness.
Modifications to the indicators are made to reflect changes in our business activities or refinements to existing measurements.
Enterprise Risk Management, or “ERM,” a dedicated corporate group, provides oversight, support and coordination across business units and is responsible for the
defined by FIN 46(R), as a result of the issuance of subordinated notes by the conduits to third-party investors, and we do not record these conduits in our consolidated financial statements.
At December 31, 2006 and 2005, total assets in unconsolidated conduits were $25.25 billion and $17.90 billion, respectively.
Our off-balance sheet commitments to these conduits are disclosed in Note 10.
Collateralized Debt Obligations: We manage a series of collateralized debt obligations, or “CDOs.
” A CDO is a managed investment vehicle which purchases a portfolio of diversified highly-rated assets.
A CDO funds purchases through the issuance of several tranches of debt and equity, the repayment and return of which are linked to the performance of the assets in the CDO.
Typically, our involvement is as collateral manager.
We may also invest in a small percentage of the debt issued.
These entities typically meet the definition of a variable interest entity as defined by FIN 46(R).
We are not the primary beneficiary of these CDOs, as defined by FIN 46(R), and do not record these CDOs in our consolidated financial statements.
At December 31, 2006 and 2005, total assets in these CDOs were $3.48 billion and $2.73 billion, respectively.
During 2005, we acquired and transferred $60 million of investment securities from our available-forsale portfolio into a CDO.
This transfer, which was executed at fair market value in exchange for cash, was treated as a sale.
We did not acquire or transfer any investment securities to a CDO during 2006.
Note 12.
Shareholders’ Equity Treasury Stock: During the first quarter of 2006, we purchased 3 million shares of our common stock under a program authorized by our Board of Directors, or “Board,” in 2005.
On March 16, 2006, the Board authorized a new program for the purchase of up to 15 million shares of our common stock for general corporate purposes, including mitigating the dilutive impact of shares issued under employee benefit programs, and terminated the 2005 program.
Under this new program, we purchased 2.8 million shares of our common stock during 2006, and as of December 31, 2006, 12.2 million shares were available for purchase.
We utilize third-party broker-dealers to acquire common shares on the open market in the execution of our stock purchase program.
In addition, shares may be acquired for other deferred compensation plans, held by an external trustee, that are not part of the common stock purchase program.
As of December 31, 2006, on a cumulative basis, approximately 395,000 shares have been purchased and are held in trust.
These shares are recorded as treasury stock in our consolidated statement of condition.
During 2006, 2005 and 2004, we purchased and recorded as treasury stock a total of 5.8 million shares, 13.1 million shares and 4.1 million shares, respectively, at an average historical cost per share of $63, $51 and $43, respectively.
Accumulated Other Comprehensive (Loss) Income:
## Table 3 ##
For the year ended December 31, 2006, we realized net gains of $15 million on sales of available-forsale securities.
Unrealized losses of $7 million were included in other comprehensive income at December 31, 2005, net of deferred taxes of $4 million, related to these sales.

Tables referenced above, in order (Table 0 first):
<table><tr><td> </td><td colspan="3">Investment Servicing</td><td colspan="3">Investment Management</td><td colspan="4"> Other/One- Time</td><td colspan="3">Total</td><td></td></tr><tr><td> Years ended December 31,</td><td>2006</td><td>2005</td><td>2004</td><td>2006</td><td>2005</td><td>2004</td><td> 2006</td><td> 2005</td><td colspan="2"> 2004</td><td> 2006</td><td>2005</td><td>2004</td><td></td></tr><tr><td> (Dollars in millions, except where otherwise noted)</td><td></td><td></td><td></td><td></td><td></td><td></td><td> </td><td> </td><td> </td><td></td><td></td><td></td><td>Fee revenue:</td><td></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td> </td><td></td><td></td><td></td><td>Servicing fees</td><td>$2,723</td></tr><tr><td>$2,474</td><td>$2,263</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>$2,723</td><td>$2,474</td><td>$2,263</td><td></td><td>Management fees</td><td>—</td></tr><tr><td>—</td><td>—</td><td>$943</td><td>$751</td><td>$623</td><td></td><td></td><td></td><td></td><td> 943</td><td>751</td><td>623</td><td></td><td>Trading services</td><td>862</td></tr><tr><td>694</td><td>595</td><td>—</td><td>—</td><td>—</td><td></td><td></td><td></td><td></td><td> 862</td><td>694</td><td>595</td><td></td><td>Securities finance</td><td>292</td></tr><tr><td>260</td><td>211</td><td>94</td><td>70</td><td>48</td><td></td><td></td><td></td><td></td><td> 386</td><td>330</td><td>259</td><td></td><td>Processing fees and other</td><td>208</td></tr><tr><td>221</td><td>239</td><td>64</td><td>81</td><td>69</td><td></td><td></td><td></td><td></td><td> 272</td><td>302</td><td>308</td><td></td><td>Total fee revenue</td><td>4,085</td></tr><tr><td>3,649</td><td>3,308</td><td>1,101</td><td>902</td><td>740</td><td></td><td></td><td></td><td></td><td> 5,186</td><td>4,551</td><td>4,048</td><td></td><td>Net interest revenue</td><td>986</td></tr><tr><td>826</td><td>816</td><td>124</td><td>81</td><td>43</td><td></td><td></td><td></td><td></td><td> 1,110</td><td>907</td><td>859</td><td></td><td>Provision for loan losses</td><td>—</td></tr><tr><td>—</td><td>-18</td><td>—</td><td>—</td><td>—</td><td></td><td></td><td></td><td></td><td> —</td><td>—</td><td>-18</td><td></td><td>Net interest revenue after provision for loan losses</td><td>986</td></tr><tr><td>826</td><td>834</td><td>124</td><td>81</td><td>43</td><td></td><td></td><td></td><td></td><td> 1,110</td><td>907</td><td>877</td><td></td><td>Gains (Losses) on sales of available-for-sale investment securities, net</td><td>15</td></tr><tr><td>-1</td><td>26</td><td>—</td><td>—</td><td>—</td><td></td><td></td><td></td><td></td><td> 15</td><td>-1</td><td>26</td><td></td><td>Gain on sale of divested business</td><td>—</td></tr><tr><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td> </td><td></td><td>$16</td><td></td><td> —</td><td>16</td><td>—</td><td></td><td>Total revenue</td><td>5,086</td></tr><tr><td>4,474</td><td>4,168</td><td>1,225</td><td>983</td><td>783</td><td></td><td></td><td>16</td><td></td><td> 6,311</td><td>5,473</td><td>4,951</td><td></td><td>Operating expenses</td><td>3,742</td></tr><tr><td>3,363</td><td>3,115</td><td>798</td><td>678</td><td>582</td><td> </td><td></td><td>—</td><td>$62</td><td> 4,540</td><td>4,041</td><td>3,759</td><td></td><td>Income from continuing operations before income taxes</td><td>$1,344</td></tr><tr><td>$1,111</td><td>$1,053</td><td>$427</td><td>$305</td><td>$201</td><td> </td><td></td><td>$16</td><td>$-62</td><td>$1,771</td><td>$1,432</td><td>$1,192</td><td></td><td>Pre-tax margin</td><td>26%</td></tr><tr><td>25%</td><td>25%</td><td>35%</td><td>31%</td><td>26%</td><td></td><td></td><td></td><td></td><td> </td><td></td><td></td><td></td><td>Average assets (in billions)</td><td>$103.4</td></tr><tr><td>$96.9</td><td>$92.5</td><td>$3.0</td><td>$2.9</td><td>$2.6</td><td></td><td></td><td></td><td></td><td>$106.4</td><td>$99.8</td><td>$95.1</td><td></td><td></td><td></td></tr></table>
<table><tr><td> </td><td colspan="3">Investment Servicing</td><td colspan="3">Investment Management</td><td colspan="3"> Other/One-Time</td><td colspan="3">Total</td></tr><tr><td> Years ended December 31,</td><td>2006</td><td>2005</td><td>2004</td><td>2006</td><td>2005</td><td>2004</td><td> 2006</td><td> 2005</td><td> 2004</td><td> 2006</td><td>2005</td><td>2004</td></tr><tr><td> (Dollars in millions, except where otherwise noted)</td><td></td><td></td><td></td><td></td><td></td><td></td><td> </td><td> </td><td></td><td> </td><td></td><td></td></tr><tr><td>Fee revenue:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Servicing fees</td><td>$ 2,723</td><td>$ 2,474</td><td>$ 2,263</td><td></td><td></td><td></td><td></td><td></td><td></td><td> $ 2,723</td><td>$ 2,474</td><td>$ 2,263</td></tr><tr><td>Management fees</td><td>—</td><td>—</td><td>—</td><td>$ 943</td><td>$ 751</td><td>$ 623</td><td> </td><td></td><td></td><td> 943</td><td>751</td><td>623</td></tr><tr><td>Trading services</td><td>862</td><td>694</td><td>595</td><td>—</td><td>—</td><td>—</td><td> </td><td></td><td></td><td> 862</td><td>694</td><td>595</td></tr><tr><td>Securities finance</td><td>292</td><td>260</td><td>211</td><td>94</td><td>70</td><td>48</td><td> </td><td></td><td></td><td> 386</td><td>330</td><td>259</td></tr><tr><td>Processing fees and other</td><td>208</td><td>221</td><td>239</td><td>64</td><td>81</td><td>69</td><td> </td><td></td><td></td><td> 272</td><td>302</td><td>308</td></tr><tr><td>Total fee revenue</td><td>4,085</td><td>3,649</td><td>3,308</td><td>1,101</td><td>902</td><td>740</td><td> </td><td></td><td></td><td> 5,186</td><td>4,551</td><td>4,048</td></tr><tr><td>Net interest revenue</td><td>986</td><td>826</td><td>816</td><td>124</td><td>81</td><td>43</td><td> </td><td></td><td></td><td> 1,110</td><td>907</td><td>859</td></tr><tr><td>Provision for loan losses</td><td>—</td><td>—</td><td>-18</td><td>—</td><td>—</td><td>—</td><td> </td><td></td><td></td><td> —</td><td>—</td><td>-18</td></tr><tr><td>Net interest revenue after provision for loan losses</td><td>986</td><td>826</td><td>834</td><td>124</td><td>81</td><td>43</td><td> </td><td></td><td></td><td> 1,110</td><td>907</td><td>877</td></tr><tr><td>Gains (Losses) on sales of available-for-sale investment securities, net</td><td>15</td><td>-1</td><td>26</td><td>—</td><td>—</td><td>—</td><td> </td><td></td><td></td><td> 15</td><td>-1</td><td>26</td></tr><tr><td>Gain on sale of divested business</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td> </td><td>$ 16</td><td></td><td> —</td><td>16</td><td>—</td></tr><tr><td>Total revenue</td><td>5,086</td><td>4,474</td><td>4,168</td><td>1,225</td><td>983</td><td>783</td><td></td><td>16</td><td></td><td> 6,311</td><td>5,473</td><td>4,951</td></tr><tr><td>Operating expenses</td><td>3,742</td><td>3,363</td><td>3,115</td><td>798</td><td>678</td><td>582</td><td> </td><td>—</td><td>$ 62</td><td> 4,540</td><td>4,041</td><td>3,759</td></tr><tr><td>Income from continuing operations before income taxes</td><td>$ 1,344</td><td>$ 1,111</td><td>$ 1,053</td><td>$ 427</td><td>$ 305</td><td>$ 201</td><td> </td><td>$ 16</td><td>$ -62</td><td> $ 1,771</td><td>$ 1,432</td><td>$ 1,192</td></tr><tr><td>Pre-tax margin</td><td>26%</td><td>25%</td><td>25%</td><td>35%</td><td>31%</td><td>26%</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Average assets (in billions)</td><td>$ 103.4</td><td>$ 96.9</td><td>$ 92.5</td><td>$ 3.0</td><td>$ 2.9</td><td>$ 2.6</td><td> </td><td></td><td></td><td> $ 106.4</td><td>$ 99.8</td><td>$ 95.1</td></tr></table>
<table><tr><td></td><td colspan="5"> TENURE OF COMMITMENT</td></tr><tr><td> (In millions)</td><td> Total amounts committed-1</td><td> Less than 1 year</td><td> 1–3 years</td><td> 4–5 years</td><td> Over 5 years</td></tr><tr><td>As of December 31, 2006</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Indemnified securities financing</td><td>$506,032</td><td>$506,032</td><td> </td><td> </td><td> </td></tr><tr><td>Liquidity asset purchase agreements</td><td> 30,017</td><td> 24,669</td><td>$2,638</td><td>$1,309</td><td>$1,401</td></tr><tr><td>Unfunded commitments to extend credit</td><td> 16,354</td><td> 12,845</td><td> 1,092</td><td> 2,256</td><td> 161</td></tr><tr><td>Standby letters of credit</td><td> 4,437</td><td> 793</td><td> 2,926</td><td> 640</td><td> 78</td></tr><tr><td>Total commercial commitments</td><td>$556,840</td><td>$544,339</td><td>$6,656</td><td>$4,205</td><td>$1,640</td></tr></table>
<table><tr><td>(In millions)</td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td>Foreign currency translation</td><td>$197</td><td>$73</td><td>$213</td></tr><tr><td>Unrealized gain (loss) on hedges of net investments in non-U.S. subsidiaries</td><td>-7</td><td>11</td><td>-26</td></tr><tr><td>Unrealized loss on available-for-sale securities</td><td>-227</td><td>-285</td><td>-56</td></tr><tr><td>Minimum pension liability</td><td>-186</td><td>-26</td><td>-26</td></tr><tr><td>Unrealized loss on cash flow hedges</td><td>-1</td><td>-4</td><td>-13</td></tr><tr><td>Total</td><td>$-224</td><td>$-231</td><td>$92</td></tr></table>

Question: in 2006 , what percent of unrealized loss did foreign currency translation offset?
Answer: 0.86784
Reasoning program: divide(197,227)