Northern Trust Corporation (Corporation only)

12 Months Ended

Dec. 31, 2019

Condensed Financial Information 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 150: CONDENSED BALANCE SHEETS

	DECEMBER 31,
(In Millions)	2019			2018
ASSETS
Cash on Deposit with Subsidiary Bank	$	2,559.1		$	866.8
Advances to Wholly-Owned Subsidiaries – Banks	2,370.0			2,910.0
Investments in Wholly-Owned Subsidiaries – Banks	9,349.8			9,585.2
– Nonbank	163.0			182.9
Other Assets	1,444.7			803.1
Total Assets	$	15,886.6		$	14,348.0
LIABILITIES
Senior Notes	$	2,573.0		$	2,011.3
Long Term Debt	1,148.1			1,112.4
Floating Rate Capital Debt	277.7			277.6
Other Liabilities	796.8			438.5
Total Liabilities	4,795.6			3,839.8
STOCKHOLDERS’ EQUITY
Preferred Stock	1,273.4			882.0
Common Stock	408.6			408.6
Additional Paid-in Capital	1,013.1			1,068.4
Retained Earnings	11,656.7			10,776.8
Accumulated Other Comprehensive Income (Loss)	(194.7		)	(453.7		)
Treasury Stock	(3,066.1		)	(2,173.9		)
Total Stockholders’ Equity	11,091.0			10,508.2
Total Liabilities and Stockholders’ Equity	$	15,886.6		$	14,348.0

TABLE 151: CONDENSED STATEMENTS OF INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2019			2018			2017
OPERATING INCOME
Dividends – Bank Subsidiaries	$	2,024.1		$	1,200.9		$	525.0
– Nonbank Subsidiaries	0.4			—			—
Intercompany Interest and Other Charges	115.1			91.9			58.2
Interest and Other Income	20.2			(8.7		)	18.1
Total Operating Income	2,159.8			1,284.1			601.3
OPERATING EXPENSES
Interest Expense	121.6			97.3			76.5
Other Operating Expenses	28.6			17.0			25.9
Total Operating Expenses	150.2			114.3			102.4
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries	2,009.6			1,169.8			498.9
Benefit for Income Taxes	24.3			24.6			43.7
Income before Equity in Undistributed Net Income of Subsidiaries	2,033.9			1,194.4			542.6
Equity in Undistributed Net Income of Subsidiaries – Banks	(559.9		)	336.7			632.6
– Nonbank	18.2			25.3			23.8
Net Income	$	1,492.2		$	1,556.4		$	1,199.0
Preferred Stock Dividends	46.4			46.4			49.8
Net Income Applicable to Common Stock	$	1,445.8		$	1,510.0		$	1,149.2

TABLE 152: CONDENSED STATEMENTS OF CASH FLOWS

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2019			2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,492.2		$	1,556.4		$	1,199.0
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Equity in Undistributed Net Income of Subsidiaries	541.7			(362.0		)	(656.4		)
Change in Prepaid Expenses	(400.4		)	(0.6		)	(0.3		)
Change in Accrued Income Taxes	114.1			(141.8		)	17.2
Other Operating Activities, net	141.9			125.6			55.7
Net Cash Provided by Operating Activities	1,889.5			1,177.6			615.2
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sale, Maturity and Redemption of Debt Securities – Available for Sale	—			1.0			—
Advances to Wholly-Owned Subsidiaries	540.0			(436.5		)	100.0
Acquisition of a Business, Net of Cash Received	—			(31.2		)	—
Other Investing Activities, net	3.7			(3.1		)	1.9
Net Cash Provided by (Used in) Investing Activities	543.7			(469.8		)	101.9
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Senior Notes	498.0			497.9			350.0
Proceeds from Issuance of Preferred Stock - Series E	391.4			—			—
Treasury Stock Purchased	(1,100.2		)	(924.3		)	(523.1		)
Net Proceeds from Stock Options	44.0			32.6			108.0
Cash Dividends Paid on Common Stock	(529.7		)	(405.4		)	(356.8		)
Cash Dividends Paid on Preferred Stock	(46.4		)	(46.4		)	(49.8		)
Other Financing Activities, net	2.0			2.1			0.1
Net Cash (Used In) Provided by Financing Activities	(740.9		)	(843.5		)	(471.6		)
Net Change in Cash on Deposit with Subsidiary Bank	1,692.3			(135.7		)	245.5
Cash on Deposit with Subsidiary Bank at Beginning of Year	866.8			1,002.5			757.0
Cash on Deposit with Subsidiary Bank at End of Year	$	2,559.1		$	866.8		$	1,002.5