Basis of Presentation — The consolidated financial statements include the accounts of Northern Trust Corporation (the Corporation) and its wholly-owned subsidiary, The Northern Trust Company (the Bank), and various other wholly-owned subsidiaries of the Corporation and the Bank. Throughout the notes, the term “Northern Trust” refers to the Corporation and its subsidiaries. Intercompany balances and transactions have been eliminated. The consolidated financial statements, as of and for the periods ended June 30, 2016 and 2015, have not been audited by the Corporation’s independent registered public accounting firm. In the opinion of management, all accounting entries and adjustments, including normal recurring accruals, necessary for a fair presentation of the financial position and the results of operations for the interim periods have been made. The accounting and financial reporting policies of Northern Trust conform to U.S. generally accepted accounting principles (GAAP) and reporting practices prescribed by the banking industry. Certain amounts in prior periods have been reclassified to conform with the current year’s presentation. For a description of Northern Trust’s significant accounting policies, refer to Note 1 of the Notes to Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2015.

Change in Presentation. Based on the increase in trade clearing activity taking place outside of the United States, during the three months ended June 30, 2016, Northern Trust became a participant in the Clearing House Automated Payment System (CHAPS) in the United Kingdom. In addition, Northern Trust anticipates becoming a participant in the European solution for securities settlements, the Target 2 Securities (T2S) platform, in early 2017. As a part of the implementation of these programs, management assessed the nature of Northern Trust’s deposits with non-U.S. central banks and determined that they were similar to the deposits Northern Trust has with the Federal Reserve. As such, during the three months ended June 30, 2016, the presentation of non-U.S. central bank deposits was combined with the presentation of Federal Reserve deposits on a single financial statement line, Federal Reserve and Other Central Bank Deposits on the face of the consolidated balance sheets. Northern Trust determined that this change in presentation was material to the financial statements and has revised the prior period presentation of the consolidated balance sheets, statements of cash flows and applicable notes to the financial statements. This change in presentation has no impact on the consolidated statements of income, comprehensive income or changes in stockholders’ equity.

The table below shows the effect of the change in presentation on the Corporation’s consolidated balance sheets and statements of cash flows for the periods presented.

Table 29: Change in Presentation



Consolidated Balance Sheets	December 31, 2015
(In Millions)	Previously Reported		Adjustment			Revised
Cash and Due from Banks	$	6,444.6	$	(26.1	)	$	6,418.5
Federal Reserve Deposits	16,398.5		(16,398.5		)	—
Federal Reserve and Other Central Bank Deposits	—		23,695.5			23,695.5
Interest-Bearing Deposits with Banks	14,143.1		(7,270.9		)	6,872.2



Consolidated Statements of Cash Flows	Six Months Ended June 30, 2015
(In Millions)	Previously Reported			Adjustment			Revised
Change in Interest-Bearing Deposits with Banks	$	(1,036.1	)	$	(1,965.3	)	$	(3,001.4	)
Net Change in Federal Reserve Deposits	(102.4		)	102.4			—
Net Change in Federal Reserve and Other Central Bank Deposits	—			1,855.1			1,855.1
Net Cash Used in Investing Activities	(7,660.7		)	(7.8		)	(7,668.5		)
Effect of Foreign Currency Exchange Rates on Cash	5.9			0.7			6.6
Increase in Cash and Due from Banks	4,102.3			(7.1		)	4,095.2
Cash and Due from Banks at Beginning of Year	3,050.6			(29.6		)	3,021.0
Cash and Due from Banks at End of Period	7,152.9			(36.7		)	7,116.2



Footnote 14 Net Interest Income	Three Months Ended June 30, 2015
(In Millions)	Previously Reported		Adjustment			Revised
Interest-Bearing Due from and Deposits with Banks	$	28.7	$	(6.0	)	$	22.7
Federal Reserve and Other Central Bank Deposits	10.7		6.0			16.7



	Six Months Ended June 30, 2015
	Previously Reported		Adjustment			Revised
Interest-Bearing Due from and Deposits with Banks	$	55.3	$	(12.5	)	$	42.8
Federal Reserve and Other Central Bank Deposits	21.1		12.5			33.6