Northern Trust Corporation (Corporation only)

12 Months Ended

Dec. 31, 2013

Northern Trust Corporation (Corporation only)

Note 33 – Northern Trust Corporation (Corporation only)

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

CONDENSED BALANCE SHEET	DECEMBER 31,
(In Millions)	2013			2012
ASSETS
Cash on Deposit with Subsidiary Bank	$	1,566.4		$	6.5
Time Deposits with Subsidiary Banks		–			1,691.4
Securities		5.3			4.9
Advances to Wholly-Owned Subsidiaries – Banks		2,035.0			1,035.0
– Nonbank		5.0			5.0
Investments in Wholly-Owned Subsidiaries – Banks		7,101.7			7,225.6
– Nonbank		168.5			142.6
Buildings and Equipment		–			3.4
Other Assets		608.8			377.7
Total Assets	$	11,490.7		$	10,492.1
LIABILITIES
Senior Notes	$	1,996.6		$	2,405.8
Long Term Debt		717.8			–
Floating Rate Capital Debt		277.1			277.0
Other Liabilities		587.2			282.3
Total Liabilities		3,578.7			2,965.1
STOCKHOLDERS’ EQUITY
Common Stock		408.6			408.6
Additional Paid-in Capital		1,035.7			1,012.7
Retained Earnings		7,134.8			6,702.7
Accumulated Other Comprehensive Loss		(244.3	)		(283.0	)
Treasury Stock		(422.8	)		(314.0	)
Total Stockholders’ Equity		7,912.0			7,527.0
Total Liabilities and Stockholders’ Equity	$	11,490.7		$	10,492.1

CONDENSED STATEMENT OF INCOME	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2013			2012			2011
OPERATING INCOME
Dividends – Bank Subsidiaries	$	880.0		$	440.0		$	500.0
– Nonbank Subsidiaries		21.7			26.2			5.1
Intercompany Interest and Other Charges		33.2			30.0			19.8
Interest and Other Income		9.0			10.6			13.3
Total Operating Income		943.9			506.8			538.2
OPERATING EXPENSES
Interest Expense		78.3			74.9			66.9
Other Operating Expenses		20.8			13.0			12.6
Total Operating Expenses		99.1			87.9			79.5
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries		844.8			418.9			458.7
Benefit for Income Taxes		24.2			21.1			24.8
Income before Equity in Undistributed Net Income of Subsidiaries		869.0			440.0			483.5
Equity in Undistributed Net Income of Subsidiaries – Banks		(152.5	)		266.9			71.0
– Nonbank		14.8			(19.6	)		49.1
Net Income	$	731.3		$	687.3		$	603.6
Net Income Applicable to Common Stock	$	731.3		$	687.3		$	603.6

CONDENSED STATEMENT OF CASH FLOWS	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2013			2012			2011
OPERATING ACTIVITIES:
Net Income	$	731.3		$	687.3		$	603.6
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities:
Equity in Undistributed Net Income of Subsidiaries		131.0			(247.3	)		(120.1	)
Change in Prepaid Expenses		(1.1	)		(0.9	)		0.2
Change in Accrued Income Taxes		(18.1	)		34.7			28.5
Other, net		102.6			(36.0	)		(41.1	)
Net Cash Provided by Operating Activities		945.7			437.8			471.1
INVESTING ACTIVITIES:
Change in Time Deposits with Banks		1,691.4			(422.2	)		292.1
Purchases of Securities – Available for Sale		–			(0.4	)		(91.4	)
Proceeds from Sale, Maturity and Redemption of Securities – Available for Sale		0.2			94.3			105.4
Change in Capital Investments in Subsidiaries		(13.0	)		0.3			(0.5	)
Advances to Wholly-Owned Subsidiaries		(1,000.0	)		–			(750.0	)
Other, net		1.8			–			–
Net Cash Used in Investing Activities		680.4			(328.0	)		(444.4	)
FINANCING ACTIVITIES:
Change in Senior Notes and Long-Term Debt		317.9			300.0			250.0
Treasury Stock Purchased		(309.7	)		(162.4	)		(79.0	)
Net Proceeds from Stock Options		146.2			106.8			75.6
Cash Dividends Paid on Common Stock		(220.6	)		(354.3	)		(273.7	)
Other, net		–			0.1			0.1
Net Cash Provided by (Used in) Financing Activities		(66.2	)		(109.8	)		(27.0	)
Net Change in Cash on Deposit with Subsidiary Bank		1,559.9			–			(0.3	)
Cash on Deposit with Subsidiary Bank at Beginning of Year		6.5			6.5			6.8
Cash on Deposit with Subsidiary Bank at End of Year	$	1,566.4		$	6.5		$	6.5