Northern Trust Corporation (Corporation only)

12 Months Ended

Dec. 31, 2017

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 130: CONDENSED BALANCE SHEETS

	DECEMBER 31,
(In Millions)	2017			2016
ASSETS
Cash on Deposit with Subsidiary Bank	$	1,002.5		$	757.0
Securities	0.9			0.9
Advances to Wholly-Owned Subsidiaries – Banks	2,460.0			2,560.0
– Nonbank	13.5			13.5
Investments in Wholly-Owned Subsidiaries – Banks	9,223.9			8,635.0
– Nonbank	212.9			184.8
Other Assets	706.4			599.1
Total Assets	$	13,620.1		$	12,750.3
LIABILITIES
Senior Notes	$	1,497.3		$	1,496.6
Long Term Debt	1,129.6			785.0
Floating Rate Capital Debt	277.5			277.4
Other Liabilities	499.5			420.9
Total Liabilities	3,403.9			2,979.9
STOCKHOLDERS’ EQUITY
Preferred Stock	882.0			882.0
Common Stock	408.6			408.6
Additional Paid-in Capital	1,047.2			1,035.8
Retained Earnings	9,685.1			8,908.4
Accumulated Other Comprehensive Income (Loss)	(414.3		)	(370.0		)
Treasury Stock	(1,392.4		)	(1,094.4		)
Total Stockholders’ Equity	10,216.2			9,770.4
Total Liabilities and Stockholders’ Equity	$	13,620.1		$	12,750.3

TABLE 131: CONDENSED STATEMENTS OF INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2017		2016		2015
OPERATING INCOME
Dividends – Bank Subsidiaries	$	525.0	$	300.0	$	600.0
– Nonbank Subsidiaries	—		3.4		8.7
Intercompany Interest and Other Charges	58.2		39.8		38.5
Interest and Other Income	18.1		7.5		5.4
Total Operating Income	601.3		350.7		652.6
OPERATING EXPENSES
Interest Expense	76.5		63.5		59.3
Other Operating Expenses	25.9		19.9		56.8
Total Operating Expenses	102.4		83.4		116.1
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries	498.9		267.3		536.5
Benefit for Income Taxes	43.7		28.3		29.0
Income before Equity in Undistributed Net Income of Subsidiaries	542.6		295.6		565.5
Equity in Undistributed Net Income of Subsidiaries – Banks	632.6		708.3		392.8
– Nonbank	23.8		28.6		15.5
Net Income	$	1,199.0	$	1,032.5	$	973.8
Preferred Stock Dividends	49.8		23.4		23.4
Net Income Applicable to Common Stock	$	1,149.2	$	1,009.1	$	950.4

TABLE 132: CONDENSED STATEMENTS OF CASH FLOWS

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2017			2016			2015
OPERATING ACTIVITIES:
Net Income	$	1,199.0		$	1,032.5		$	973.8
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities:
Equity in Undistributed Net Income of Subsidiaries	(656.4		)	(736.9		)	(408.3		)
Change in Prepaid Expenses	(0.3		)	3.0			1.2
Change in Accrued Income Taxes	17.2			(17.9		)	22.8
Other, net	55.7			55.7			58.4
Net Cash Provided by Operating Activities	615.2			336.4			647.9
INVESTING ACTIVITIES:
Proceeds from Sale, Maturity and Redemption of Securities – Available for Sale	—			0.2			1.3
Change in Capital Investments in Subsidiaries	—			(3.0		)	(10.0		)
Advances to Wholly-Owned Subsidiaries	100.0			(295.0		)	—
Other, net	1.9			1.2			0.2
Net Cash Used in Investing Activities	101.9			(296.6		)	(8.5		)
FINANCING ACTIVITIES:
Proceeds from Senior Notes and Long-Term Debt	350.0			—			—
Proceeds from Issuance of Preferred Stock – Series C and Series D	—			493.5			—
Treasury Stock Purchased	(523.1		)	(411.1		)	(496.9		)
Net Proceeds from Stock Options	108.0			233.8			94.0
Cash Dividends Paid on Common Stock	(356.8		)	(333.0		)	(321.4		)
Cash Dividends Paid on Preferred Stock	(49.8		)	(23.4		)	(27.0		)
Other, net	0.1			(0.1		)	—
Net Cash Used in Financing Activities	(471.6		)	(40.3		)	(751.3		)
Net Change in Cash on Deposit with Subsidiary Bank	245.5			(0.5		)	(111.9		)
Cash on Deposit with Subsidiary Bank at Beginning of Year	757.0			757.5			869.4
Cash on Deposit with Subsidiary Bank at End of Year	$	1,002.5		$	757.0		$	757.5