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 127: CONDENSED BALANCE SHEETS



	DECEMBER 31,
(In Millions)	2018			2017
ASSETS
Cash on Deposit with Subsidiary Bank	$	866.8		$	1,002.5
Debt Securities	—			0.9
Advances to Wholly-Owned Subsidiaries – Banks	2,910.0			2,460.0
– Nonbank	—			13.5
Investments in Wholly-Owned Subsidiaries – Banks	9,585.2			9,223.9
– Nonbank	182.9			212.9
Other Assets	803.1			706.4
Total Assets	$	14,348.0		$	13,620.1
LIABILITIES
Senior Notes	$	2,011.3		$	1,497.3
Long Term Debt	1,112.4			1,129.6
Floating Rate Capital Debt	277.6			277.5
Other Liabilities	438.5			499.5
Total Liabilities	3,839.8			3,403.9
STOCKHOLDERS’ EQUITY
Preferred Stock	882.0			882.0
Common Stock	408.6			408.6
Additional Paid-in Capital	1,068.4			1,047.2
Retained Earnings	10,776.8			9,685.1
Accumulated Other Comprehensive Income (Loss)	(453.7		)	(414.3		)
Treasury Stock	(2,173.9		)	(1,392.4		)
Total Stockholders’ Equity	10,508.2			10,216.2
Total Liabilities and Stockholders’ Equity	$	14,348.0		$	13,620.1

TABLE 128: CONDENSED STATEMENTS OF INCOME



	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2018			2017		2016
OPERATING INCOME
Dividends – Bank Subsidiaries	$	1,200.9		$	525.0	$	300.0
– Nonbank Subsidiaries	—			—		3.4
Intercompany Interest and Other Charges	91.9			58.2		39.8
Interest and Other Income	(8.7		)	18.1		7.5
Total Operating Income	1,284.1			601.3		350.7
OPERATING EXPENSES
Interest Expense	97.3			76.5		63.5
Other Operating Expenses	17.0			25.9		19.9
Total Operating Expenses	114.3			102.4		83.4
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries	1,169.8			498.9		267.3
Benefit for Income Taxes	24.6			43.7		28.3
Income before Equity in Undistributed Net Income of Subsidiaries	1,194.4			542.6		295.6
Equity in Undistributed Net Income of Subsidiaries – Banks	336.7			632.6		708.3
– Nonbank	25.3			23.8		28.6
Net Income	$	1,556.4		$	1,199.0	$	1,032.5
Preferred Stock Dividends	46.4			49.8		23.4
Net Income Applicable to Common Stock	$	1,510.0		$	1,149.2	$	1,009.1

TABLE 129: CONDENSED STATEMENTS OF CASH FLOWS



	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2018			2017			2016
OPERATING ACTIVITIES:
Net Income	$	1,556.4		$	1,199.0		$	1,032.5
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities:
Equity in Undistributed Net Income of Subsidiaries	(362.0		)	(656.4		)	(736.9		)
Change in Prepaid Expenses	(0.6		)	(0.3		)	3.0
Change in Accrued Income Taxes	(141.8		)	17.2			(17.9		)
Other, net	125.6			55.7			55.7
Net Cash Provided by Operating Activities	1,177.6			615.2			336.4
INVESTING ACTIVITIES:
Proceeds from Sale, Maturity and Redemption of Debt Securities – Available for Sale	1.0			—			0.2
Change in Capital Investments in Subsidiaries	—			—			(3.0		)
Advances to Wholly-Owned Subsidiaries	(436.5		)	100.0			(295.0		)
Acquisition of a Subsidiary, net of cash acquired	(31.2		)	—			—
Other, net	(3.1		)	1.9			1.2
Net Cash Used in Investing Activities	(469.8		)	101.9			(296.6		)
FINANCING ACTIVITIES:
Proceeds from Senior Notes and Long-Term Debt	497.9			350.0			—
Proceeds from Issuance of Preferred Stock – Series D	—			—			493.5
Treasury Stock Purchased	(924.3		)	(523.1		)	(411.1		)
Net Proceeds from Stock Options	32.6			108.0			233.8
Cash Dividends Paid on Common Stock	(405.4		)	(356.8		)	(333.0		)
Cash Dividends Paid on Preferred Stock	(46.4		)	(49.8		)	(23.4		)
Other, net	2.1			0.1			(0.1		)
Net Cash Used in Financing Activities	(843.5		)	(471.6		)	(40.3		)
Net Change in Cash on Deposit with Subsidiary Bank	(135.7		)	245.5			(0.5		)
Cash on Deposit with Subsidiary Bank at Beginning of Year	1,002.5			757.0			757.5
Cash on Deposit with Subsidiary Bank at End of Year	$	866.8		$	1,002.5		$	757.0