Northern Trust Corporation (Corporation only)

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Northern Trust Corporation (Corporation only)

Northern Trust Corporation (Corporation only)

Condensed financial information is presented below. Investments in wholly-owned subsidiaries are carried on the equity method of accounting.

TABLE 128: CONDENSED BALANCE SHEETS

	DECEMBER 31,
(In Millions)	2016			2015
ASSETS
Cash on Deposit with Subsidiary Bank	$	757.0		$	757.5
Securities	0.9			1.2
Advances to Wholly-Owned Subsidiaries – Banks	2,560.0			2,260.0
– Nonbank	13.5			18.5
Investments in Wholly-Owned Subsidiaries – Banks	8,635.0			7,927.8
– Nonbank	184.8			153.4
Other Assets	599.1			682.3
Total Assets	$	12,750.3		$	11,800.7
LIABILITIES
Senior Notes	$	1,496.6		$	1,497.4
Long Term Debt	785.0			800.4
Floating Rate Capital Debt	277.4			277.3
Other Liabilities	420.9			519.7
Total Liabilities	2,979.9			3,094.8
STOCKHOLDERS’ EQUITY
Preferred Stock	882.0			388.5
Common Stock	408.6			408.6
Additional Paid-in Capital	1,035.8			1,072.3
Retained Earnings	8,908.4			8,242.8
Accumulated Other Comprehensive Income (Loss)	(370.0		)	(372.7		)
Treasury Stock	(1,094.4		)	(1,033.6		)
Total Stockholders’ Equity	9,770.4			8,705.9
Total Liabilities and Stockholders’ Equity	$	12,750.3		$	11,800.7

TABLE 129: CONDENSED STATEMENTS OF INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2016		2015		2014
OPERATING INCOME
Dividends – Bank Subsidiaries	$	300.0	$	600.0	$	300.0
– Nonbank Subsidiaries	3.4		8.7		3.8
Intercompany Interest and Other Charges	39.8		38.5		42.9
Interest and Other Income	7.5		5.4		(0.3		)
Total Operating Income	350.7		652.6		346.4
OPERATING EXPENSES
Interest Expense	63.5		59.3		66.6
Other Operating Expenses	19.9		56.8		17.0
Total Operating Expenses	83.4		116.1		83.6
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries	267.3		536.5		262.8
Benefit for Income Taxes	28.3		29.0		16.6
Income before Equity in Undistributed Net Income of Subsidiaries	295.6		565.5		279.4
Equity in Undistributed Net Income of Subsidiaries – Banks	708.3		392.8		522.1
– Nonbank	28.6		15.5		10.3
Net Income	$	1,032.5	$	973.8	$	811.8
Preferred Stock Dividends	23.4		23.4		9.5
Net Income Applicable to Common Stock	$	1,009.1	$	950.4	$	802.3

TABLE 130: CONDENSED STATEMENTS OF CASH FLOWS

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2016			2015			2014
OPERATING ACTIVITIES:
Net Income	$	1,032.5		$	973.8		$	811.8
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities:
Equity in Undistributed Net Income of Subsidiaries	(736.9		)	(408.3		)	(532.4		)
Change in Prepaid Expenses	3.0			1.2			0.2
Change in Accrued Income Taxes	(17.9		)	22.8			(30.7		)
Other, net	55.7			58.4			56.1
Net Cash Provided by Operating Activities	336.4			647.9			305.0
INVESTING ACTIVITIES:
Proceeds from Sale, Maturity and Redemption of Securities – Available for Sale	0.2			1.3			2.9
Change in Capital Investments in Subsidiaries	(3.0		)	(10.0		)	—
Advances to Wholly-Owned Subsidiaries	(295.0		)	—			(238.5		)
Other, net	1.2			0.2			1.1
Net Cash Used in Investing Activities	(296.6		)	(8.5		)	(234.5		)
FINANCING ACTIVITIES:
Change in Senior Notes and Long-Term Debt	—			—			(500.0		)
Proceeds from Issuance of Preferred Stock – Series C and Series D	493.5			—			388.5
Treasury Stock Purchased	(411.1		)	(496.9		)	(480.7		)
Net Proceeds from Stock Options	233.8			94.0			127.5
Cash Dividends Paid on Common Stock	(333.0		)	(321.4		)	(302.9		)
Cash Dividends Paid on Preferred Stock	(23.4		)	(27.0		)	—
Other, net	(0.1		)	—			0.1
Net Cash Used in Financing Activities	(40.3		)	(751.3		)	(767.5		)
Net Change in Cash on Deposit with Subsidiary Bank	(0.5		)	(111.9		)	(697.0		)
Cash on Deposit with Subsidiary Bank at Beginning of Year	757.5			869.4			1,566.4
Cash on Deposit with Subsidiary Bank at End of Year	$	757.0		$	757.5		$	869.4