Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2023

Plan Status of U.S. Plan, Non-U.S. Plans and Supplemental Plan

The following tables set forth the status, amounts included in AOCI, and net periodic pension expense of the U.S. Qualified Plan, Non-U.S. Pension Plans, and U.S. Non-Qualified Plan. Prior service credits for the U.S. Qualified Plan were amortized on a straight-line basis over 11 years and were amortized in full as of December 31, 2022. Prior service

costs for the U.S. Non-Qualified Plan were amortized on a straight-line basis over 10 years and were amortized in full as of December 31, 2021.

TABLE 103: EMPLOYEE BENEFIT PLAN STATUS


	U.S. QUALIFIED PLAN						NON-U.S. PENSION PLANS						U.S. NON-QUALIFIED PLAN
($ In Millions)	2023			2022			2023			2022			2023			2022
Accumulated Benefit Obligation	$	1,015.6		$	963.3		$	143.7		$	126.2		$	94.1		$	97.4

Projected Benefit Obligation	$	1,151.7		$	1,077.7		$	148.6		$	129.0		$	109.2		$	113.6
Plan Assets at Fair Value	1,200.8			1,176.8			148.7			134.5			—			—
Funded Status at December 31	$	49.1		$	99.1		$	0.1		$	5.5		$	(109.2)		$	(113.6)
Weighted-Average Assumptions:
Discount Rates	5.03		%	5.22		%	3.12		%	3.76		%	4.95		%	5.15		%
Rate of Increase in Compensation Level	5.56			5.56			1.75			1.75			5.56			5.56
Expected Long-Term Rate of Return on Assets	7.25			7.25			3.90			3.99			N/A			N/A

Amount Included in Accumulated Other Comprehensive Income


	U.S. QUALIFIED PLAN				NON-U.S. PENSION PLANS				U.S. NON-QUALIFIED PLAN
(In Millions)	2023		2022		2023		2022		2023		2022
Net Actuarial Loss	$	467.7	$	418.3	$	34.4	$	24.3	$	62.3	$	59.2
Prior Service (Credit) Cost	—		—		—		0.2		—		—
Gross Amount in Accumulated Other Comprehensive Income	467.7		418.3		34.4		24.5		62.3		59.2
Income Tax Effect	117.7		105.1		5.1		4.9		15.6		14.8
Net Amount in Accumulated Other Comprehensive Income	$	350.0	$	313.2	$	29.3	$	19.6	$	46.7	$	44.4

Components of Company's Net Periodic Benefit Cost


	U.S. QUALIFIED PLAN(1)													NON-U.S. PENSION PLANS									U.S. NON-QUALIFIED PLAN
($ In Millions)	2023			2022					2021					2023			2022			2021			2023			2022			2021
Service Cost	$	46.0		$	48.0				$	52.3				$	1.6		$	1.7		$	2.2		$	4.8		$	5.6		$	5.3
Interest Cost	53.9			46.3					40.4					4.8			2.5			2.2			5.3			3.9			3.7
Expected Return on Plan Assets	(100.9)			(85.7)					(79.0)					(6.7)			(3.2)			(3.2)			—			—			—
Amortization:
Net Actuarial Loss	1.5			11.4					32.4					(0.4)			0.6			1.0			5.3			7.4			8.2
Prior Service (Credit) Cost	—			(0.1)					(0.4)					—			—			0.2			—			—			0.1
Net Periodic Pension Expense	$	0.5		$	19.9				$	45.7				$	(0.7)		$	1.6		$	2.4		$	15.4		$	16.9		$	17.3
Settlement Expense	—			44.1					27.9					—			0.8			0.4			—			—			—
Total Pension Expense	$	0.5		$	64.0				$	73.6				$	(0.7)		$	2.4		$	2.8		$	15.4		$	16.9		$	17.3
Weighted-Average Assumptions:
Discount Rates	5.22		%	3.03		%	4.81	%	2.75		%	3.05	%	3.76		%	1.34		%	0.93		%	5.15		%	2.80		%	2.45		%
				5.49		%	5.22	%	3.06		%	3.03	%
Rate of Increase in Compensation Level	5.56			4.97								4.97		1.75			1.50			1.50			5.56			4.97			4.97
Expected Long-Term Rate of Return on Assets	7.25			5.25			6.00		5.25			5.00		3.99			1.79			1.28			N/A			N/A			N/A
							6.50

(1) In determining the pension expense for the U.S. Qualified Plan for 2022, Northern Trust utilized a discount rate of 3.03% as of December 31, 2021, 4.81% as of June 30, 2022, 5.49% as of September 30, 2022, and 5.22% as of December 31, 2022 and the expected long-term rate of return was 5.25% as of December 31, 2021, 6.00% as of June 30, 2022, and 6.50% as of September 30, 2022.

In determining the pension expense for the U.S. Qualified Plan for 2021, Northern Trust utilized a discount rate of 2.75% as of December 31, 2020, 3.05% as of June 30, 2021, 3.06% as of September 30, 2021, and 3.03% as of December 31, 2021 and the expected long-term rate of return was 5.25% as of both December 31, 2020 and June 30, 2021, and 5.00% as of September 31, 2021.

Change in Benefit Obligation, Postretirement Health Care, and in Accumulated Postretirement Benefit Obligation


	U.S. QUALIFIED PLAN				NON-U.S. PENSION PLANS				U.S. NON-QUALIFIED PLAN
(In Millions)	2023		2022		2023		2022		2023		2022
Beginning Balance	$	1,077.7	$	1,401.3	$	129.0	$	210.1	$	113.6	$	147.7
Service Cost	46.0		48.0		1.6		1.7		4.8		5.6
Interest Cost	53.9		46.3		4.8		2.5		5.3		3.9
Employee Contributions	—		—		0.8		0.7		—		—
Plan Amendment	—		—		(0.2)		(0.3)		—		—
Actuarial Loss (Gain)	36.8		(281.2)		8.1		(64.3)		8.4		(20.0)
Settlements	—		(125.0)		—		(0.9)		—		—
Benefits Paid	(62.7)		(11.7)		(4.1)		(4.6)		(22.9)		(23.6)
Foreign Exchange Rate Changes	—		—		8.6		(15.9)		—		—
Ending Balance	$	1,151.7	$	1,077.7	$	148.6	$	129.0	$	109.2	$	113.6

Estimated Future Benefit Payments


(In Millions)	U.S. QUALIFIED PLAN		NON-U.S.PENSION PLANS		U.S. NON-QUALIFIED PLAN
2024	$	95.7	$	6.2	$	15.8
2025	99.6		4.7		16.1
2026	98.9		5.5		13.4
2027	101.2		6.5		11.2
2028	98.6		6.8		11.2
2029-2033	487.6		35.3		49.8

Change in Plan Assets


	U.S. QUALIFIED PLAN				NON-U.S PENSION PLANS
(In Millions)	2023		2022		2023		2022
Fair Value of Assets at Beginning of Period	$	1,176.8	$	1,708.9	$	134.5	$	198.7
Actual Return on Assets	86.8		(395.4)		5.0		(46.9)
Employer Contributions	—		—		3.9		3.6
Employee Contributions	—		—		0.8		0.7
Settlements	—		(125.0)		—		(0.9)
Benefits Paid	(62.8)		(11.7)		(4.1)		(4.6)
Foreign Exchange Rate Changes	—		—		8.6		(16.1)
Fair Value of Assets at End of Period	$	1,200.8	$	1,176.8	$	148.7	$	134.5

Fair Values of U.S. Pension Plan Assets by Major Asset Category, and their Level within Fair Value Hierarchy

The following table presents the fair values of Northern Trust’s U.S. Qualified Plan assets, by major asset category, and their level within the fair value hierarchy defined by GAAP as of December 31, 2023 and 2022.

TABLE 109: FAIR VALUE OF U.S. QUALIFIED PLAN ASSETS


	DECEMBER 31, 2023
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
Domestic Common Stock	$	16.6	$	—	$	—	$	16.6
Foreign Common Stock	0.3		—		—		0.3
Domestic Corporate Bonds	—		218.2		—		218.2
Foreign Corporate Bonds	—		33.6		—		33.6
U.S. Government Obligations	—		87.5		—		87.5
Non-U.S. Government Obligations	—		14.0		—		14.0
Domestic Municipal and Provincial Bonds	—		17.2		—		17.2
Foreign Municipal and Provincial Bonds	—		0.3		—		0.3
Collective Trust Funds	—		571.5		—		571.5
Mutual Funds	80.3		—		—		80.3
Cash and Other(1)	(3.4)		—		—		(3.4)
Total Assets at Fair Value in the Fair Value Hierarchy	$	93.8	$	942.3	$	—	$	1,036.1
Assets Valued at NAV per share
Northern Trust Private Equity Funds							45.6
Northern Trust Hedge Fund							36.2
Real Estate Funds							82.9
Total Assets at Fair Value							$	1,200.8

(1) Negative balance in Cash and Other as of December 31, 2023 primarily relates to the timing of transfers between cash accounts and short-term investment funds presented in Collective Trust Funds.


	DECEMBER 31, 2022
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
Domestic Common Stock	$	14.7	$	—	$	—	$	14.7
Foreign Common Stock	0.5		—		—		0.5
Domestic Corporate Bonds	—		263.6		—		263.6
Foreign Corporate Bonds	—		39.6		—		39.6
U.S. Government Obligations	—		77.5		—		77.5
Non-U.S. Government Obligations	—		13.8		—		13.8
Domestic Municipal and Provincial Bonds	—		16.8		—		16.8
Foreign Municipal and Provincial Bonds	—		0.2		—		0.2
Collective Trust Funds	—		522.3		—		522.3
Mutual Funds	61.4		—		—		61.4
Cash and Other(1)	(1.1)		—		—		(1.1)
Total Assets at Fair Value in the Fair Value Hierarchy	$	75.5	$	933.8	$	—	$	1,009.3
Assets Valued at NAV per share
Northern Trust Private Equity Funds							33.2
Northern Trust Hedge Fund							35.2
Real Estate Funds							99.1
Total Assets at Fair Value							$	1,176.8

(1) Negative balance in Cash and Other as of December 31, 2022 primarily relates to due to broker for securities purchased.