Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NTRS | ||
Entity Registrant Name | NORTHERN TRUST CORP | ||
Entity Central Index Key | 73124 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 233,486,704 | ||
Entity Public Float | $15.10 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
ASSETS | ||||
Cash and Due from Banks | $3,050.60 | $3,162.40 | ||
Federal Funds Sold and Securities Purchased under Agreements to Resell | 1,062.70 | 529.6 | ||
Interest-Bearing Deposits with Banks | 14,928.30 | 19,397.40 | ||
Federal Reserve Deposits | 17,386.30 | 12,911.50 | ||
Securities | ||||
Available for Sale | 29,558.50 | 28,392.80 | ||
Held to Maturity (Fair value of $4,176.1 and $2,321.4) | 4,170.80 | 2,325.80 | ||
Trading Account | 4.7 | 1.7 | ||
Total Securities | 33,734 | 30,720.30 | ||
Loans and Leases | ||||
Commercial | 14,353.60 | 12,620 | ||
Personal | 17,286.60 | 16,765.50 | ||
Total Loans and Leases | 31,640.20 | 29,385.50 | ||
Allowance for Credit Losses Assigned to Loans and Leases | -267 | -278.1 | ||
Buildings and Equipment | 444.3 | 458.8 | ||
Client Security Settlement Receivables | 1,568.80 | 1,355.20 | ||
Goodwill | 533.2 | 540.7 | ||
Other Assets | 5,865.10 | 4,764 | ||
Total Assets | 109,946.50 | 102,947.30 | ||
Deposits | ||||
Demand and Other Noninterest-Bearing | 22,815 | 16,888.70 | ||
Savings and Money Market | 15,916.40 | 14,991.50 | ||
Savings Certificates and Other Time | 1,757.40 | 1,874.40 | ||
Non-U.S. Offices - Noninterest-Bearing | 2,723.20 | 1,881.80 | ||
- Interest-Bearing | 47,545 | 48,461.70 | ||
Total Deposits | 90,757 | 84,098.10 | ||
Federal Funds Purchased | 932.9 | 965.1 | ||
Securities Sold under Agreements to Repurchase | 885.1 | 917.3 | ||
Other Borrowings | 1,685.20 | 1,558.60 | ||
Senior Notes | 1,497 | [1],[2] | 1,996.60 | [1],[2] |
Long-Term Debt | 1,615.10 | 1,709.20 | ||
Floating Rate Capital Debt | 277.2 | 277.1 | ||
Other Liabilities | 3,848.10 | 3,513.30 | ||
Total Liabilities | 101,497.60 | 95,035.30 | ||
STOCKHOLDERS' EQUITY | ||||
Preferred Stock, No Par Value; Authorized 10,000,000 shares: Series C, Outstanding shares of 16,000 and 0 | 388.5 | |||
Common Stock, $1.66 2/3Par Value; Authorized 560,000,000 shares; Outstanding shares of 233,390,705 and 237,322,035 | 408.6 | 408.6 | ||
Additional Paid-in Capital | 1,050.90 | 1,035.70 | ||
Retained Earnings | 7,625.40 | 7,134.80 | ||
Accumulated Other Comprehensive Loss | -319.7 | -244.3 | ||
Treasury Stock (11,780,819 and 7,849,489 shares, at cost) | -704.8 | -422.8 | ||
Total Stockholders' Equity | 8,448.90 | 7,912 | ||
Total Liabilities and Stockholders' Equity | $109,946.50 | $102,947.30 | ||
[1] | Not redeemable prior to maturity. | |||
[2] | Debt issue costs are recorded as an asset and amortized on a straight-line basis over the life of the Note. |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Held to Maturity, Fair value | $4,176.10 | $2,321.40 |
Total Loans and Leases, unearned income | $287.70 | $286.20 |
Preferred Stock, Par Value | ||
Preferred Stock, Authorized | 10,000,000 | |
Preferred Stock, Outstanding | 16,000 | |
Common Stock, Par Value | $1.67 | $1.67 |
Common Stock, Authorized | 560,000,000 | 560,000,000 |
Common Stock, Outstanding | 233,390,705 | 237,322,035 |
Treasury Stock, shares | 11,780,819 | 7,849,489 |
Consolidated_Statement_of_Inco
Consolidated Statement of Income (USD $) | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Noninterest Income | ||||||
Trust, Investment and Other Servicing Fees | $2,832.80 | $2,609.80 | $2,405.50 | |||
Foreign Exchange Trading Income | 210.1 | 244.4 | 206.1 | |||
Treasury Management Fees | 66 | 69 | 67.4 | |||
Security Commissions and Trading Income | 67.6 | 68 | 73.6 | |||
Other Operating Income | 153.5 | 166.5 | 154.9 | |||
Investment Security Gains (Losses), net | -4.3 | [1] | -1.5 | [1] | -1.7 | [1] |
Total Noninterest Income | 3,325.70 | 3,156.20 | 2,905.80 | |||
Net Interest Income | ||||||
Interest Income | 1,186.90 | 1,155.50 | 1,287.70 | |||
Interest Expense | 181.4 | 222.4 | 297.4 | |||
Net Interest Income | 1,005.50 | 933.1 | 990.3 | |||
Provision for Credit Losses | 6 | 20 | 25 | |||
Net Interest Income after Provision for Credit Losses | 999.5 | 913.1 | 965.3 | |||
Noninterest Expense | ||||||
Compensation | 1,417.90 | 1,306.60 | 1,267.40 | |||
Employee Benefits | 268.7 | 257.5 | 258.2 | |||
Outside Services | 574.6 | 564.1 | 529.2 | |||
Equipment and Software | 421.4 | 377.6 | 366.7 | |||
Occupancy | 180.3 | 173.8 | 174.4 | |||
Other Operating Expense | 272.1 | 314.2 | 282.9 | |||
Total Noninterest Expense | 3,135 | 2,993.80 | 2,878.80 | |||
Income before Income Taxes | 1,190.20 | 1,075.50 | 992.3 | |||
Provision for Income Taxes | 378.4 | 344.2 | 305 | |||
NET INCOME | 811.8 | 731.3 | 687.3 | |||
Preferred Stock Dividends | 9.5 | |||||
Net Income Applicable to Common Stock | $802.30 | $731.30 | $687.30 | |||
PER COMMON SHARE | ||||||
Net Income - Basic | $3.34 | $3.01 | $2.82 | |||
Net Income - Diluted | $3.32 | $2.99 | $2.81 | |||
Average Number of Common Shares Outstanding - Basic | 235,829,790 | 239,265,313 | 240,417,805 | |||
Average Number of Common Shares Outstanding - Diluted | 237,720,255 | 240,554,840 | 240,881,244 | |||
[1] | Changes in Other-Than-Temporary-Impairment (OTTI) Losses $ (4.9 ) $ - $ (2.7 ) Noncredit-related OTTI Losses Recorded in (Reclassified from) OCI 0.7 - (0.6 ) Other Security Gains (Losses), net (0.1 ) (1.5 ) 1.6 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income | $811.80 | $731.30 | $687.30 |
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | |||
Net Unrealized Gains (Losses) on Securities Available for Sale | 21.6 | -95 | 61.2 |
Net Unrealized (Losses) Gains on Cash Flow Hedges | -7.6 | 4.3 | 5.6 |
Foreign Currency Translation Adjustments | -8.8 | -3.4 | 20 |
Pension and Other Postretirement Benefit Adjustments | -80.6 | 132.8 | -24.2 |
Other Comprehensive (Loss) Income | -75.4 | 38.7 | 62.6 |
Comprehensive Income | $736.40 | $770 | $749.90 |
Consolidated_Statement_of_Inco1
Consolidated Statement of Income (Parenthetical) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Changes in Other-Than-Temporary-Impairment (OTTI) Losses | ($4.90) | [1] | ($2.70) | [1] | ||
Noncredit-related OTTI Losses Recorded in (Reclassified from) OCI | 0.7 | [2] | -0.6 | [2] | ||
Other Security Gains (Losses), net | -0.1 | -1.5 | 1.6 | |||
Investment Security (Losses) Gains, net | ($4.30) | [3] | ($1.50) | [3] | ($1.70) | [3] |
[1] | For initial other-than-temporary impairments in the respective period, the balance includes the excess of the amortized cost over the fair value of the impaired securities. For subsequent impairments of the same security, the balance includes any additional changes in fair value of the security subsequent to its most recently recorded OTTI. | |||||
[2] | For initial other-than-temporary impairments in the respective period, the balance includes the portion of the excess of amortized cost over the fair value of the impaired securities that was recorded in OCI. For subsequent impairments of the same security, the balance includes additional changes in OCI for that security subsequent to its most recently recorded OTTI. | |||||
[3] | Changes in Other-Than-Temporary-Impairment (OTTI) Losses $ (4.9 ) $ - $ (2.7 ) Noncredit-related OTTI Losses Recorded in (Reclassified from) OCI 0.7 - (0.6 ) Other Security Gains (Losses), net (0.1 ) (1.5 ) 1.6 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (USD $) | Total | PREFERRED STOCK | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | TREASURY STOCK |
In Millions | |||||||
Balance at Dec. 31, 2011 | $408.60 | $977.50 | $6,302.30 | ($345.60) | ($225.50) | ||
Net Unrealized Gains (Losses) on Securities Available for Sale | 61.2 | 61.2 | |||||
Stock Options and Awards | -41.5 | 74.4 | |||||
Net Income | 687.3 | 687.3 | |||||
Net Unrealized (Losses) Gains on Cash Flow Hedges | 5.6 | 5.6 | |||||
Stock Options and Awards - Amortization | 74.4 | ||||||
Dividends Declared - Common Stock | -286.9 | ||||||
Stock Purchased | -162.9 | ||||||
Foreign Currency Translation Adjustments | 20 | 20 | |||||
Stock Options and Awards - Tax Benefits | 2.3 | 2.3 | |||||
Pension and Other Postretirement Benefit Adjustments | -24.2 | -24.2 | |||||
Balance at Dec. 31, 2012 | 7,527 | 408.6 | 1,012.70 | 6,702.70 | -283 | -314 | |
Net Unrealized Gains (Losses) on Securities Available for Sale | -95 | -95 | |||||
Stock Options and Awards | -55 | 201.2 | |||||
Net Income | 731.3 | 731.3 | |||||
Net Unrealized (Losses) Gains on Cash Flow Hedges | 4.3 | 4.3 | |||||
Stock Options and Awards - Amortization | 75 | ||||||
Dividends Declared - Common Stock | -299.2 | ||||||
Stock Purchased | -310 | ||||||
Foreign Currency Translation Adjustments | -3.4 | -3.4 | |||||
Stock Options and Awards - Tax Benefits | 3 | 3 | |||||
Pension and Other Postretirement Benefit Adjustments | 132.8 | 132.8 | |||||
Balance at Dec. 31, 2013 | 7,912 | 408.6 | 1,035.70 | 7,134.80 | -244.3 | -422.8 | |
Net Unrealized Gains (Losses) on Securities Available for Sale | 21.6 | 21.6 | |||||
Stock Options and Awards | -71.1 | 198.7 | |||||
Net Income | 811.8 | 811.8 | |||||
Issuance of Preferred Stock, Series C | 388.5 | ||||||
Net Unrealized (Losses) Gains on Cash Flow Hedges | -7.6 | -7.6 | |||||
Stock Options and Awards - Amortization | 77.5 | ||||||
Dividends Declared - Common Stock | -311.7 | ||||||
Stock Purchased | -480.7 | ||||||
Foreign Currency Translation Adjustments | -8.8 | -8.8 | |||||
Stock Options and Awards - Tax Benefits | 8.8 | 8.8 | |||||
Dividends Declared - Preferred Stock | -9.5 | ||||||
Pension and Other Postretirement Benefit Adjustments | -80.6 | -80.6 | |||||
Balance at Dec. 31, 2014 | $8,448.90 | $388.50 | $408.60 | $1,050.90 | $7,625.40 | ($319.70) | ($704.80) |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net Income | $811.80 | $731.30 | $687.30 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | ||||||
Investment Security Losses (Gains), net | 4.3 | [1] | 1.5 | [1] | 1.7 | [1] |
Amortization and Accretion of Securities and Unearned Income, net | 34.8 | 44.7 | -11.7 | |||
Provision for Credit Losses | 6 | 20 | 25 | |||
Depreciation on Buildings and Equipment | 90.6 | 92.3 | 88.3 | |||
Change in Accrued Income Taxes | 55.2 | -31.5 | 18.5 | |||
Pension Plan Contributions | -18.7 | -20.7 | -112.3 | |||
Deferred Income Tax Provision | -36.4 | 66.6 | 79.7 | |||
Change in Receivables | 20.9 | -206.2 | -41.9 | |||
Change in Interest Payable | -4.5 | -11.2 | -10 | |||
Change in Collateral With Derivative Counterparties, net | -359.2 | -250.6 | -127.9 | |||
Other Operating Activities, net | 86.1 | 176.9 | 16.6 | |||
Net Cash Provided by Operating Activities | 936 | 839.3 | 814.4 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Net Change in Federal Funds Sold and Securities Purchased under Agreements to Resell | -533.1 | -468.8 | 60.5 | |||
Change in Interest-Bearing Deposits with Banks | 3,297.20 | -782.1 | -2,107.10 | |||
Net Change in Federal Reserve Deposits | -4,474.80 | -5,292.10 | 5,829 | |||
Purchases of Securities - Held to Maturity | -7,138.70 | -5,715.50 | -3,798.50 | |||
Proceeds from Maturity and Redemption of Securities - Held to Maturity | 4,907.70 | 5,853.90 | 2,220.90 | |||
Purchases of Securities - Available for Sale | -12,668 | -8,168 | -19,546.40 | |||
Proceeds from Sale, Maturity and Redemption of Securities - Available for Sale | 11,476.60 | 8,456.40 | 21,183.30 | |||
Change in Loans and Leases | -2,288.30 | 17.8 | -469.6 | |||
Purchases of Buildings and Equipment | -81.9 | -91.9 | -73.3 | |||
Purchases and Development of Computer Software | -327.6 | -293 | -239.2 | |||
Change in Client Security Settlement Receivables | -224.1 | 690.6 | -1,270.80 | |||
Other Investing Activities, net | -157.4 | 109.4 | -161.2 | |||
Net Cash (Used in) Provided by Investing Activities | -8,212.40 | -5,683.30 | 1,627.60 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Change in Deposits | 8,487.70 | 2,938.90 | -1,269.70 | |||
Change in Federal Funds Purchased | -32.2 | 184.9 | -35.1 | |||
Change in Securities Sold under Agreements to Repurchase | -32.2 | 217.5 | -499 | |||
Change in Short-Term Other Borrowings | -164.3 | 1,258.80 | -435.5 | |||
Proceeds from Senior Notes and Long-Term Debt | 750 | 500 | ||||
Repayments of Senior Notes and Long-Term Debt | -640 | -804.4 | -923.7 | |||
Contingent Consideration Liability Payment | -55.3 | |||||
Proceeds from Issuance of Preferred Stock - Series C | 388.5 | |||||
Treasury Stock Purchased | -480.7 | -309.7 | -162.4 | |||
Net Proceeds from Stock Options | 127.5 | 146.2 | 106.8 | |||
Cash Dividends Paid on Common Stock | -302.9 | -220.6 | -354.3 | |||
Other Financing Activities, net | -222.4 | 226.7 | ||||
Net Cash Provided by (Used in) Financing Activities | 7,073.70 | 4,388.30 | -3,072.90 | |||
Effect of Foreign Currency Exchange Rates on Cash | 90.9 | -134.6 | 68.3 | |||
Decrease in Cash and Due from Banks | -111.8 | -590.3 | -562.6 | |||
Cash and Due from Banks at Beginning of Year | 3,162.40 | 3,752.70 | 4,315.30 | |||
Cash and Due from Banks at End of Year | 3,050.60 | 3,162.40 | 3,752.70 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||
Interest Paid | 186.5 | 231.9 | 307.4 | |||
Income Taxes Paid | 279.2 | 262.6 | 188.5 | |||
Transfers from Loans to OREO | 21.4 | 24.7 | 48.5 | |||
Computer Software | ||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | ||||||
Amortization of Intangibles | 225.6 | 205.1 | 180.8 | |||
Other Intangible Assets | ||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | ||||||
Amortization of Intangibles | $19.50 | $21.10 | $20.30 | |||
[1] | Changes in Other-Than-Temporary-Impairment (OTTI) Losses $ (4.9 ) $ - $ (2.7 ) Noncredit-related OTTI Losses Recorded in (Reclassified from) OCI 0.7 - (0.6 ) Other Security Gains (Losses), net (0.1 ) (1.5 ) 1.6 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies |
The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and reporting practices prescribed for the banking industry. A description of the more significant accounting policies follows. | |
A. Basis of Presentation. The consolidated financial statements include the accounts of Northern Trust Corporation (Corporation) and its wholly-owned subsidiary, The Northern Trust Company (Bank), and various other wholly-owned subsidiaries of the Corporation and Bank. Throughout the notes, the term “Northern Trust” refers to the Corporation and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Certain prior-year balances have been reclassified consistent with the current-year’s presentation. | |
B. Nature of Operations. The Corporation is a bank holding company that has elected to be a financial holding company under the Bank Holding Company Act of 1956, as amended. The Bank is an Illinois banking corporation headquartered in Chicago and the Corporation’s principal subsidiary. The Corporation conducts business in the United States (U.S.) and internationally through various U.S. and non-U.S. subsidiaries, including the Bank. | |
Northern Trust generates the majority of its revenue from its two client-focused reporting segments: Corporate & Institutional Services (C&IS) and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business. | |
C&IS is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities including but not limited to: global master trust and custody; employee benefit services, fund administration; investment operations outsourcing; investment risk and analytical services; securities lending; foreign exchange; banking; cash management; treasury management; brokerage services; and transition management services. Client relationships are managed through the Bank and the Bank’s and the Corporation’s other subsidiaries, including support from locations in North America, Europe, the Middle East, and the Asia Pacific region. | |
Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses in its target markets. Wealth Management also includes the Global Family Office, which provides customized services to meet the complex financial needs of individuals and family offices in the United States and throughout the world with assets typically exceeding $200 million. Wealth Management services are delivered by multidisciplinary teams through a network of offices in 18 U.S. states and Washington, D.C., as well as offices in London, Guernsey, and Abu Dhabi. | |
C. Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. | |
D. Foreign Currency Remeasurement and Translation. Asset and liability accounts denominated in nonfunctional currencies are remeasured into functional currencies at period end rates of exchange, except for certain balance sheet items including buildings and equipment, goodwill and other intangible assets, which are remeasured at historical exchange rates. Results from remeasurement of asset and liability accounts are reported in other operating income as currency translation gains (losses), net. Income and expense accounts are remeasured at period average rates of exchange. | |
Asset and liability accounts of entities with functional currencies that are not the U.S. dollar are translated at period end rates of exchange. Income and expense accounts are translated at period average rates of exchange. Translation adjustments, net of applicable taxes, are reported directly to accumulated other comprehensive income (AOCI), a component of stockholders’ equity. | |
E. Securities. Securities Available for Sale are reported at fair value, with unrealized gains and losses credited or charged, net of the tax effect, to AOCI. Realized gains and losses on securities available for sale are determined on a specific identification basis and are reported within other security gains (losses), net, in the consolidated statement of income. Interest income is recorded on the accrual basis, adjusted for the amortization of premium and accretion of discount. | |
Securities Held to Maturity consist of debt securities that management intends to, and Northern Trust has the ability to, hold until maturity. Such securities are reported at cost, adjusted for amortization of premium and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and accretion of discount. | |
Securities Held for Trading are stated at fair value. Realized and unrealized gains and losses on securities held for trading are reported in the consolidated statement of income within security commissions and trading income. | |
Nonmarketable Securities primarily consist of Federal Reserve and Federal Home Loan Bank stock and community development investments, each of which are recorded in other assets on the consolidated balance sheet. Federal Reserve and Federal Home Loan Bank stock are reported at cost, which represents redemption value. Community development investments, are typically reported at amortized cost. Those community development investments that are designed to generate a return primarily through realization of tax credits and other tax benefits, which are discussed in further detail in Note 28 – Variable Interest Entities, are reported at amortized cost using the effective yield method or proportional amortization method and amortized over the lives of the related tax credits and other tax benefits. | |
Other-Than-Temporary Impairment (OTTI). A security is considered to be other-than-temporarily impaired if the present value of cash flows expected to be collected are less than the security’s amortized cost basis (the difference being defined as the credit loss) or if the fair value of the security is less than the security’s amortized cost basis and the investor intends, or more-likely-than-not will be required, to sell the security before recovery of the security’s amortized cost basis. If OTTI exists, the charge to earnings is limited to the amount of credit loss if the investor does not intend to sell the security, and it is more-likely-than-not that it will not be required to sell the security, before recovery of the security’s amortized cost basis. Any remaining difference between fair value and amortized cost is recognized in AOCI, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost is charged to earnings. | |
F. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase. Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third party custodians, of securities purchased under agreements to resell. | |
G. Derivative Financial Instruments. Northern Trust is a party to various derivative instruments that are used in the normal course of business to meet the needs of its clients; as part of its trading activity for its own account; and as part of its risk management activities. These instruments include foreign exchange contracts, interest rate contracts, and credit default swap contracts. Derivative financial instruments are recorded on the consolidated balance sheet at fair value within other assets and other liabilities. Derivative asset and liability positions with the same counterparty are reflected on a net basis on the consolidated balance sheet in cases where legally enforceable master netting arrangements or similar agreements exist. Derivative assets and liabilities are further reduced by cash collateral received from, and deposited with, derivative counterparties. The accounting for changes in the fair value of a derivative in the consolidated statement of income depends on whether or not the contract has been designated as a hedge and qualifies for hedge accounting under GAAP. Derivative financial instruments are recorded on the consolidated cash flow statement within the line item, ‘other operating activities, net,’ except for net investment hedges which are recorded within ‘other investing activities, net’. | |
Changes in the fair value of client-related and trading derivative instruments, which are not designated hedges under GAAP, are recognized currently in either foreign exchange trading income or security commissions and trading income. Changes in the fair value of derivative instruments entered into for risk management purposes but not designated as hedges are recognized currently in other operating income. Certain derivative instruments used by Northern Trust to manage risk are formally designated and qualify for hedge accounting as fair value, cash flow, or net investment hedges. | |
Derivatives designated as fair value hedges are used to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates. Changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recognized currently in income. For substantially all fair value hedges, Northern Trust applies the “shortcut” method of accounting, available under GAAP, which assumes there is no ineffectiveness in a hedge. As a result, changes recorded in the fair value of the hedged item are equal to the offsetting gain or loss on the derivative and are reflected in the same line item. For fair value hedges that do not qualify for the “shortcut” method of accounting, Northern Trust utilizes regression analysis, a “long-haul” method of accounting, in assessing whether these hedging relationships are highly effective at inception and quarterly thereafter. Ineffectiveness resulting from fair value hedges is recorded in either interest income or interest expense. | |
Derivatives designated as cash flow hedges are used to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates. The effective portion of changes in the fair value of such derivatives is recognized in AOCI, a component of stockholders’ equity, and there is no change to the accounting for the hedged item. Balances in AOCI are reclassified to earnings when the hedged forecasted transaction impacts earnings. Northern Trust applies the “shortcut” method of accounting for cash flow hedges of certain available for sale investment securities. For cash flow hedges of certain other available for sale investment securities and forecasted foreign currency denominated revenue and expenditure transactions, Northern Trust closely matches all terms of the hedged item and hedging derivative at inception and on an ongoing basis which limits hedge ineffectiveness. For cash flow hedges of available for sale investment securities, to the extent all terms are not perfectly matched, effectiveness is assessed using regression analysis and any ineffectiveness is measured using the hypothetical derivative method. For cash flow hedges of forecasted foreign currency denominated revenue and expenditure transactions, to the extent all terms are not perfectly matched, effectiveness is assessed using the dollar-offset method and any ineffectiveness is measured using the hypothetical derivative method. Any ineffectiveness is recognized currently in earnings. | |
Foreign exchange contracts and qualifying non-derivative instruments designated as net investment hedges are used to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. The effective portion of changes in the fair value of the hedging instrument is recognized in AOCI consistent with the related translation gains and losses of the hedged net investment. For net investment hedges, all critical terms of the hedged item and the hedging instrument are matched at inception and on an ongoing basis to minimize the risk of hedge ineffectiveness. To the extent all terms are not perfectly matched, any ineffectiveness is measured using the hypothetical derivative method. Ineffectiveness resulting from net investment hedges is recorded in other operating income. Amounts recorded in AOCI are reclassified to earnings only upon the sale or liquidation of an investment in a non-U.S. branch or subsidiary. | |
Fair value, cash flow, and net investment hedges are designated and formally documented as such contemporaneous with the transaction. The formal documentation describes the hedge relationship and identifies the hedging instruments and hedged items. Included in the documentation is a discussion of the risk management objectives and strategies for undertaking such hedges, the nature of the risk being hedged, a description of the method for assessing hedge effectiveness at inception and on an ongoing basis, as well as the method that will be used to measure hedge ineffectiveness. For hedges that do not qualify for the “shortcut” or the critical terms match methods of accounting, a formal assessment is performed on a calendar quarter basis to verify that derivatives used in hedging transactions continue to be highly effective in offsetting the changes in fair value or cash flows of the hedged item. Hedge accounting is discontinued if a derivative ceases to be highly effective, matures, is terminated or sold, if a hedged forecasted transaction is no longer expected to occur, or if Northern Trust removes the derivative’s hedge designation. Subsequent gains and losses on these derivatives are included in foreign exchange trading income or security commissions and trading income. For discontinued cash flow hedges, the accumulated gain or loss on the derivative remains in AOCI and is reclassified to earnings in the period in which the previously hedged forecasted transaction impacts earnings or is no longer probable of occurring. For discontinued fair value hedges, the previously hedged asset or liability ceases to be adjusted for changes in its fair value. Previous adjustments to the hedged item are amortized over the remaining life of the hedged item. | |
H. Loans and Leases. Loans and leases are recognized assets that represent a contractual right to receive money either on demand or on fixed or determinable dates. Loans and leases are disaggregated for disclosure purposes by portfolio segment (segment) and by class. Segment is defined as the level at which management develops and documents a systematic methodology to determine the allowance for credit losses. Northern Trust has defined its segments as commercial and personal. A class of loans and leases is a subset of a segment, the components of which have similar risk characteristics, measurement attributes, or risk monitoring methods. The classes within the commercial segment have been defined as commercial and institutional, commercial real estate, lease financing, non-US and other. The classes within the personal segment have been defined as residential real estate, private client and other. | |
Loan Classification. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income. Loans classified as held for sale are reported at the lower of aggregate cost or fair value. Loan commitments for residential real estate loans that will be classified as held for sale at the time of funding and which have an interest rate lock are recorded on the balance sheet at fair value with subsequent gains or losses recognized in other operating income. Unrealized gains on these loan commitments are reported as other assets, with unrealized losses reported as other liabilities. Other undrawn commitments relating to loans that are not held for sale are recorded in other liabilities and are carried at the amount of unamortized fees with an allowance for credit loss liability recognized for any estimated probable losses. | |
Recognition of Income. Interest income on loans is recorded on an accrual basis unless, in the opinion of management, there is a question as to the ability of the debtor to meet the terms of the loan agreement, or interest or principal is more than 90 days contractually past due and the loan is not well-secured and in the process of collection. Loans meeting such criteria are classified as nonperforming and interest income is recorded on a cash basis. Past due status is based on how long since the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans that are 29 days past due or less are reported as current. At the time a loan is determined to be nonperforming, interest accrued but not collected is reversed against interest income in the current period. Interest collected on nonperforming loans is applied to principal unless, in the opinion of management, collectability of principal is not in doubt. Management’s assessment of indicators of loan and lease collectability, and its policies relative to the recognition of interest income, including the suspension and subsequent resumption of income recognition, do not meaningfully vary between loan and lease classes. Nonperforming loans are returned to performing status when factors indicating doubtful collectability no longer exist. Factors considered in returning a loan to performing status are consistent across all classes of loans and leases and, in accordance with regulatory guidance, relate primarily to expected payment performance. Loans are eligible to be returned to performing status when: (i) no principal or interest that is due is unpaid and repayment of the remaining contractual principal and interest is expected or (ii) the loan has otherwise become well-secured (possessing realizable value sufficient to discharge the debt, including accrued interest, in full) and is in the process of collection (through action reasonably expected to result in debt repayment or restoration to a current status in the near future). A loan that has not been brought fully current may be restored to performing status provided there has been a sustained period of repayment performance (generally a minimum of six months) by the borrower in accordance with the contractual terms, and Northern Trust is reasonably assured of repayment within a reasonable period of time. Additionally, a loan that has been formally restructured so as to be reasonably assured of repayment and performance according to its modified terms may be returned to accrual status, provided there was a well-documented credit evaluation of the borrower’s financial condition and prospects of repayment under the revised terms, and there has been a sustained period of repayment performance (generally a minimum of six months) under the revised terms. | |
Impaired Loans. A loan is considered to be impaired when, based on current information and events, management determines that it is probable that Northern Trust will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans are identified through ongoing credit management and risk rating processes, including the formal review of past due and watch list credits. Payment performance and delinquency status are critical factors in identifying impairment for all loans and leases, particularly those within the residential real estate, private client and personal-other classes. Other key factors considered in identifying impairment of loans and leases within the commercial and institutional, non-U.S., lease financing, and commercial-other classes relate to the borrower’s ability to perform under the terms of the obligation as measured through the assessment of future cash flows, including consideration of collateral value, market value, and other factors. A loan is also considered to be impaired if its terms have been modified as a concession by Northern Trust or a bankruptcy court resulting from the debtor’s financial difficulties, referred to as a troubled debt restructuring (TDR). All TDRs are reported as impaired loans in the calendar year of their restructuring. In subsequent years, a TDR may cease being reported as impaired if the loan was modified at a market rate and has performed according to the modified terms for at least six months. A loan that has been modified at a below market rate will return to performing status if it satisfies the six month performance requirement; however, it will remain reported as impaired. Impairment is measured based upon the loan’s market price, the present value of expected future cash flows, discounted at the loan’s original effective interest rate, or at the fair value of the collateral if the loan is collateral dependent. If the loan valuation is less than the recorded value of the loan, based on the certainty of loss, either a specific allowance is established, or a charge-off is recorded, for the difference. Smaller balance (individually less than $250,000) homogeneous loans are collectively evaluated for impairment and excluded from impaired loan disclosures as allowed under applicable accounting standards. Northern Trust’s accounting policies for impaired loans is consistent across all classes of loans and leases. | |
Premiums and Discounts. Premiums and discounts on loans are recognized as an adjustment of yield using the interest method based on the contractual terms of the loan. Certain direct origination costs and fees are netted, deferred and amortized over the life of the related loan as an adjustment to the loan’s yield. | |
Direct Financing and Leverage Leases. Unearned lease income from direct financing and leveraged leases is recognized using the interest method. This method provides a constant rate of return on the unrecovered investment over the life of the lease. The rate of return and the allocation of income over the lease term are recalculated from the inception of the lease if during the lease term assumptions regarding the amount or timing of estimated cash flows change. Lease residual values are established at the inception of the lease based on in-house valuations and market analyses provided by outside parties. Lease residual values are reviewed at least annually for OTTI. A decline in the estimated residual value of a leased asset determined to be other-than-temporary would be recorded in the period in which the decline is identified as a reduction of interest income. | |
I. Allowance for Credit Losses. The allowance for credit losses represents management’s estimate of probable losses which have occurred as of the date of the consolidated financial statements. The loan and lease portfolio and other lending-related credit exposures are regularly reviewed to evaluate the level of the allowance for credit losses. In determining an appropriate allowance level, Northern Trust evaluates the allowance necessary for impaired loans and lending-related commitments and also estimates losses inherent in other lending-related credit exposures. The allowance for credit losses consists of the following components: | |
Specific Allowance. The amount of specific allowance is determined through an individual evaluation of loans and lending-related commitments considered impaired that is based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay. For impaired loans where the amount of specific allowance, if any, is determined based on the value of the underlying real estate collateral, third-party appraisals are typically obtained and utilized by management. These appraisals are generally less than twelve months old and are subject to adjustments to reflect management’s judgment as to the realizable value of the collateral. | |
Inherent Allowance. The amount of inherent allowance is based on factors which incorporate management’s evaluation of historical charge-off experience and various qualitative factors such as management’s evaluation of economic and business conditions and changes in the character and size of the loan portfolio. Factors are applied to loan and lease credit exposures aggregated by shared risk characteristics and are reviewed quarterly by Northern Trust’s Loan Loss Reserve Committee which includes representatives from Credit Risk Management, reporting segment management and Corporate Financial Management. | |
Loans, leases and other extensions of credit deemed uncollectible are charged to the allowance for credit losses. Subsequent recoveries, if any, are credited to the allowance. Northern Trust’s policies relative to the charging-off of uncollectible loans and leases are consistent across both loan and lease segments. Determinations as to whether loan balances for which the collectability is in question are charged-off or a specific reserve is established are based on management’s assessment as to the level of certainty regarding the amount of loss. The provision for credit losses, which is charged to income, is the amount necessary to adjust the allowance for credit losses to the level determined to be appropriate through the above process. Actual losses may vary from current estimates and the amount of the provision for credit losses may be either greater than or less than actual net charge-offs. | |
Northern Trust analyzes its exposure to credit losses from both on-balance-sheet and off-balance-sheet activity using a consistent methodology. In estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, management uses conversion rates to determine the estimated amount that will be funded. Factors based on historical loss experience and specific risk characteristics of the loan product are utilized to calculate inherent losses related to undrawn commitments and standby letters of credit as of the reporting date. The portion of the allowance assigned to loans and leases is reported as a contra asset, directly following loans and leases in the consolidated balance sheet. | |
The portion of the allowance assigned to undrawn loan commitments and standby letters of credit is reported in other liabilities in the consolidated balance sheet. | |
J. Standby Letters of Credit. Fees on standby letters of credit are recognized in other operating income using the straight-line method over the lives of the underlying agreements. Northern Trust’s recorded other liability for standby letters of credit, reflecting the obligation it has undertaken, is measured as the amount of unamortized fees on these instruments. | |
K. Buildings and Equipment. Buildings and equipment owned are carried at original cost less accumulated depreciation. The charge for depreciation is computed using the straight-line method based on the following range of lives: buildings – up to 30 years; equipment – 3 to 10 years; and leasehold improvements–the shorter of the lease term or 15 years. Leased properties meeting certain criteria are capitalized and amortized using the straight-line method over the lease period. | |
L. Other Real Estate Owned (OREO). OREO is comprised of commercial and residential real estate properties acquired in partial or total satisfaction of loans. OREO assets are carried at the lower of cost or fair value less estimated costs to sell and are recorded in other assets in the consolidated balance sheet. Fair value is typically based on third-party appraisals. Appraisals of OREO properties are updated on an annual basis and are subject to adjustments to reflect management’s judgment as to the realizable value of the properties. Losses identified during the 90-day period after the acquisition of such properties are charged against the allowance for credit losses assigned to loans and leases. Subsequent write-downs that may be required to the carrying value of these assets and gains or losses realized from asset sales are recorded within other operating expense. | |
M. Goodwill and Other Intangible Assets. Goodwill is not subject to amortization. Separately identifiable acquired intangible assets with finite lives are amortized over their estimated useful lives, primarily on a straight-line basis. Purchased software and allowable internal costs, including compensation relating to software developed for internal use, are capitalized. Software is amortized using the straight-line method over the estimated useful lives of the assets, generally ranging from 3 to 10 years. | |
Goodwill and other intangible assets are reviewed for impairment on an annual basis or more frequently if events or changes in circumstances indicate the carrying amounts may not be recoverable. | |
N. Assets Under Custody and Assets Under Management. Assets held in fiduciary or agency capacities are not included on the consolidated balance sheet, since such items are not assets of Northern Trust. | |
O. Trust, Investment and Other Servicing Fees. Trust, investment and other servicing fees are recorded on the accrual basis, over the period in which the service is provided. Fees are a function of the market value of assets custodied, managed and serviced, the volume of transactions, securities lending volume and spreads, and fees for other services rendered, as set forth in the underlying client agreement. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on estimated asset valuations and transaction volumes. | |
Client reimbursed out-of-pocket expenses that are an extension of existing services that are being rendered are recorded on a gross basis as revenue. | |
P. Client Security Settlement Receivables. These receivables result from custody client withdrawals from short-term investment funds that settle on the following business day. Northern Trust advances cash to the client on the date of the client withdrawal and awaits collection from the short-term investment funds the following business day. | |
Q. Income Taxes. Northern Trust follows an asset and liability approach to account for income taxes. The objective is to recognize the amount of taxes payable or refundable for the current year, and to recognize deferred tax assets and liabilities resulting from temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates. | |
Tax positions taken or expected to be taken on a tax return are evaluated based on their likelihood of being sustained upon examination by tax authorities. Only tax positions that are considered more-likely-than-not to be sustained are recorded in the consolidated financial statements. Northern Trust recognizes any interest and penalties related to unrecognized tax benefits in the provision for income taxes. | |
R. Cash Flow Statements. Cash and cash equivalents have been defined as “Cash and Due from Banks”. | |
S. Pension and Other Postretirement Benefits. Northern Trust records the funded status of its defined benefit pension and other postretirement plans on the consolidated balance sheet. Prepaid pension and postretirement benefits are reported in other assets and unfunded pension and postretirement benefits are reported in other liabilities. Plan assets and benefit obligations are measured annually at December 31. Pension costs are recognized ratably over the estimated working lifetime of eligible participants. | |
T. Share-Based Compensation Plans. Northern Trust recognizes as compensation expense the grant-date fair value of stock and stock unit awards and other share-based compensation granted to employees within the consolidated income statement. The fair values of stock and stock unit awards, including performance stock unit awards and director awards, are based on the price of the Corporation’s stock on the date of grant. The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The model utilizes weighted-average assumptions regarding the period of time that options granted are expected to be outstanding (expected term) based primarily on the historical exercise behavior attributable to previous option grants, the estimated yield from dividends paid on the Corporation’s stock over the expected term of the options, the historical volatility of Northern Trust’s stock price and the implied volatility of traded options on Northern Trust stock, and a risk free interest rate based on the U.S. Treasury yield curve at the time of grant for a period equal to the expected term of the options granted. | |
Compensation expense for share-based award grants with terms that provide for a graded vesting schedule, whereby portions of the award vest in increments over the requisite service period, are recognized on a straight-line basis over the requisite service period for the entire award. Northern Trust does not include an estimate of future forfeitures in its recognition of share-based compensation expense as historical forfeitures have not been significant. Share-based compensation expense is adjusted based on forfeitures as they occur. Dividend equivalents are paid on stock units that have been granted but not yet vested. Cash flows resulting from the realization of tax deductions from the exercise of stock options in excess of the compensation cost recognized (excess tax benefits) are classified as financing cash flows. | |
U. Net Income Per Common Share. Basic net income per common share is computed by dividing net income/loss applicable to common stock by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income applicable to common stock and potential common shares by the aggregate of the weighted average number of common shares outstanding during the period and common share equivalents calculated for stock options and restricted stock outstanding using the treasury stock method. In a period of a net loss, diluted net income per common share is calculated in the same manner as basic net income per common share. | |
Northern Trust has issued certain restricted stock awards, which are unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents. These restricted shares are considered participating securities. Accordingly, Northern Trust calculates net income applicable to common stock using the two-class method, whereby net income is allocated between common stock and participating securities. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Recent Accounting Pronouncements | Note 2 – Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The ASU is a converged standard between the FASB and the International Accounting Standards Board (IASB) that provides a single comprehensive revenue recognition model for all contracts with customers across transactions and industries. The primary objective of the ASU is revenue recognition that represents the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU is effective for interim and annual reporting periods beginning after December 15, 2016. Northern Trust is currently assessing the impact of adoption of ASU 2014-09. | |
In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” This ASU requires secured borrowing accounting treatment for repurchase-to-maturity transactions and provides guidance on accounting for repurchase financing arrangements. This ASU is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of this ASU will result in additional disclosures, but is not expected to impact significantly Northern Trust’s consolidated financial position or results of operations. | |
In June 2014, the FASB also issued ASU No. 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period.” This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and should not be reflected in estimating the grant-date fair value of the award. This ASU is effective for interim and annual reporting periods beginning after December 15, 2015 with earlier adoption permitted. The adoption of this ASU is not expected to impact significantly Northern Trust’s consolidated financial position or results of operations. | |
In August 2014, the FASB issued ASU No. 2014-14, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” This ASU requires that a mortgage loan be derecognized and a separate receivable, measured based on the amount of the loan balance expected to be recovered from the guarantor, be recognized upon foreclosure if certain conditions are met. This ASU is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of this ASU is not expected to significantly impact Northern Trust’s consolidated financial position or results of operations. | |
In November 2014, the FASB issued ASU No. 2014-16, “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force)”. This ASU requires issuers or investors of hybrid instruments issued in the form of a share to determine whether the nature of the host contract is more akin to debt or equity by considering all stated and implied substantive terms and features of the hybrid instrument, including the embedded derivative feature, weighing each term and feature on the basis of the relevant facts and circumstances. This ASU is effective for interim and annual periods beginning after December 15, 2015. The adoption of this ASU is not expected to significantly impact Northern Trust’s consolidated financial position or results of operations. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Measurements | Note 3 – Fair Value Measurements | ||||||||||||||||||||
Fair value under GAAP is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. | |||||||||||||||||||||
Fair Value Hierarchy. The following describes the hierarchy of valuation inputs (Levels 1, 2, and 3) used to measure fair value and the primary valuation methodologies used by Northern Trust for financial instruments measured at fair value on a recurring basis. Observable inputs reflect market data obtained from sources independent of the reporting entity; unobservable inputs reflect the entity’s own assumptions about how market participants would value an asset or liability based on the best information available. GAAP requires an entity measuring fair value to maximize the use of observable inputs and minimize the use of unobservable inputs and establishes a fair value hierarchy of inputs. Financial instruments are categorized within the hierarchy based on the lowest level input that is significant to their valuation. Northern Trust’s policy is to recognize transfers into and transfers out of fair value levels as of the end of the reporting period in which the transfer occurred. No transfers between fair value levels occurred during the years ended December 31, 2014, or 2013. | |||||||||||||||||||||
Level 1 – Quoted, active market prices for identical assets or liabilities. Northern Trust’s Level 1 assets are comprised of available for sale investments in U.S. treasury securities. | |||||||||||||||||||||
Level 2 – Observable inputs other than Level 1 prices, such as quoted active market prices for similar assets or liabilities, quoted prices for identical or similar assets in inactive markets, and model-derived valuations in which all significant inputs are observable in active markets. Northern Trust’s Level 2 assets include available for sale and trading account securities, the fair values of which are determined predominantly by external pricing vendors. Prices received from vendors are compared to other vendor and third-party prices. If a security price obtained from a pricing vendor is determined to exceed pre-determined tolerance levels that are assigned based on an asset type’s characteristics, the exception is researched and, if the price is not able to be validated, an alternate pricing vendor is utilized, consistent with Northern Trust’s pricing source hierarchy. As of December 31, 2014, Northern Trust’s available for sale securities portfolio included 881 Level 2 securities with an aggregate market value of $25.0 billion. All 881 securities were valued by external pricing vendors. As of December 31, 2013, Northern Trust’s available for sale securities portfolio included 831 Level 2 securities with an aggregate market value of $26.4 billion. Of those, 829 securities, with a market value of $26.3 billion, were valued by external pricing vendors. The remaining 2 securities, with an aggregate market value of $57.4 million, were valued consistent with prices of similar securities as there were no vended prices available for these securities. Trading account securities, which totaled $4.7 million and $1.7 million as of December 31, 2014, and December 31, 2013, respectively, were all valued using external pricing vendors. | |||||||||||||||||||||
Northern Trust has established processes and procedures to assess the suitability of valuation methodologies used by external pricing vendors, including reviews of valuation techniques and assumptions used for selected securities. On a daily basis, periodic quality control reviews of prices received from vendors are conducted which include comparisons to prices on similar security types received from multiple pricing vendors and to the previous day’s reported prices for each security. Predetermined tolerance level exceptions are researched and may result in additional validation through available market information or the use of an alternate pricing vendor. Quarterly, Northern Trust reviews documentation from third-party pricing vendors regarding the valuation processes and assumptions used in their valuations and assesses whether the fair value levels assigned by Northern Trust to each security classification are appropriate. Annually, valuation inputs used within third-party pricing vendor valuations are reviewed for propriety on a sample basis through a comparison of inputs used to comparable market data, including security classifications that are less actively traded and security classifications comprising significant portions of the portfolio. | |||||||||||||||||||||
Level 2 assets and liabilities also include derivative contracts which are valued internally using widely accepted income-based models that incorporate inputs readily observable in actively quoted markets and reflect the contractual terms of the contracts. Observable inputs include foreign exchange rates and interest rates for foreign exchange contracts; credit spreads, default probabilities, and recovery rates for credit default swap contracts; interest rates for interest rate swap contracts and forward contracts; and interest rates and volatility inputs for interest rate option contracts. Northern Trust evaluates the impact of counterparty credit risk and its own credit risk on the valuation of its derivative instruments. Factors considered include the likelihood of default by Northern Trust and its counterparties, the remaining maturities of the instruments, net exposures after giving effect to master netting arrangements or similar agreements, available collateral, and other credit enhancements in determining the appropriate fair value of derivative instruments. The resulting valuation adjustments have not been considered material. | |||||||||||||||||||||
Level 3 – Valuation techniques in which one or more significant inputs are unobservable in the marketplace. Northern Trust’s Level 3 assets consist of auction rate securities purchased in 2008 from Northern Trust clients. To estimate the fair value of auction rate securities, for which trading is limited and market prices are generally unavailable, Northern Trust developed and maintains a pricing model that discounts estimated cash flows over their estimated remaining lives. Significant inputs to the model include the contractual terms of the securities, credit risk ratings, discount rates, forward interest rates, credit/liquidity spreads, and Northern Trust’s own assumptions about the estimated remaining lives of the securities. The significant unobservable inputs used in the fair value measurement are Northern Trust’s own assumptions about the estimated remaining lives of the securities and the applicable discount rates. Significant increases (decreases) in the estimated remaining lives or the discount rates in isolation would result in a significantly lower (higher) fair value measurement. Level 3 liabilities at December 31, 2013, consisted of an acquisition-related contingent consideration liability, the fair value of which was determined using an income-based (discounted cash flow) model that incorporated Northern Trust’s own assumptions about business growth rates and applicable discount rates, which represented unobservable inputs to the model. In April 2014, Northern Trust made a payment of $55.3 million to extinguish the contingent consideration liability at the value agreed by the parties. | |||||||||||||||||||||
Northern Trust believes its valuation methods for its assets and liabilities carried at fair value are appropriate; however, the use of different methodologies or assumptions, particularly as applied to Level 3 assets and liabilities, could have a material effect on the computation of their estimated fair values. | |||||||||||||||||||||
Management of various businesses and departments of Northern Trust (including Corporate Market Risk, Credit Risk Management, Corporate Financial Management, C&IS and Wealth Management) determine the valuation policies and procedures for Level 3 assets and liabilities. Generally, valuation policies are reviewed by management of each business or department. Fair value measurements are performed upon acquisitions of an asset or liability. As necessary, the valuation models are reviewed by management of the appropriate business or department, and adjusted for changes in inputs. Management of each business or department reviews the inputs in order to substantiate the unobservable inputs used in each fair value measurement. When appropriate, management reviews forecasts used in the valuation process in light of other relevant financial projections to understand any variances between current and previous fair value measurements. In certain circumstances, third party information is used to support the fair value measurements. If certain third party information seems inconsistent with consensus views, a review of the information is performed by management of the respective business or department to conclude as to the appropriate fair value of the asset or liability. | |||||||||||||||||||||
The following presents the fair values of, and the valuation techniques, significant unobservable inputs, and quantitative information used to develop significant unobservable inputs for, Northern Trust’s Level 3 assets and liabilities as of December 31, 2014. | |||||||||||||||||||||
TABLE 41: LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS | |||||||||||||||||||||
FINANCIAL INSTRUMENT | FAIR VALUE | VALUATION TECHNIQUE | UNOBSERVABLE INPUT | RANGE OF LIVES AND RATES | |||||||||||||||||
Auction Rate Securities | $ | 18.1 million | Discounted Cash Flow | Remaining lives | 1.4 – 8.6 years | ||||||||||||||||
Discount rates | 0.2% – 8.1% | ||||||||||||||||||||
The following presents assets and liabilities measured at fair value on a recurring basis as of December 31, 2014, and 2013, segregated by fair value hierarchy level. | |||||||||||||||||||||
TABLE 42: RECURRING BASIS HIERARCHY LEVELING | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | NETTING | ASSETS/ | ||||||||||||||||
LIABILITIES | |||||||||||||||||||||
AT FAIR | |||||||||||||||||||||
VALUE | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale | |||||||||||||||||||||
U.S. Government | $ | 4,506.90 | $ | – | $ | – | $ | – | $ | 4,506.90 | |||||||||||
Obligations of States and Political Subdivisions | – | 4.6 | – | – | 4.6 | ||||||||||||||||
Government Sponsored Agency | – | 16,389.20 | – | – | 16,389.20 | ||||||||||||||||
Non-U.S. Government | – | 310.4 | – | – | 310.4 | ||||||||||||||||
Corporate Debt | – | 3,577.70 | – | – | 3,577.70 | ||||||||||||||||
Covered Bonds | – | 1,907.50 | – | – | 1,907.50 | ||||||||||||||||
Supranational and Non-U.S. Agency Bonds | – | 360.6 | – | – | 360.6 | ||||||||||||||||
Residential Mortgage-Backed | – | 6.4 | – | – | 6.4 | ||||||||||||||||
Other Asset-Backed | – | 2,321.30 | – | – | 2,321.30 | ||||||||||||||||
Auction Rate | – | – | 18.1 | – | 18.1 | ||||||||||||||||
Other | – | 155.8 | – | – | 155.8 | ||||||||||||||||
Total Available for Sale | 4,506.90 | 25,033.50 | 18.1 | – | 29,558.50 | ||||||||||||||||
Trading Account | – | 4.7 | – | – | 4.7 | ||||||||||||||||
Total Available for Sale and Trading Securities | 4,506.90 | 25,038.20 | 18.1 | – | 29,563.20 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||
Foreign Exchange Contracts | – | 4,275.20 | – | – | 4,275.20 | ||||||||||||||||
Interest Rate Contracts | – | 232.3 | – | – | 232.3 | ||||||||||||||||
Total Derivative Assets | – | 4,507.50 | – | (2,257.1 | ) | 2,250.40 | |||||||||||||||
Other Liabilities | |||||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||
Foreign Exchange Contracts | – | 4,095.50 | – | – | 4,095.50 | ||||||||||||||||
Interest Rate Swaps | – | 131.8 | – | – | 131.8 | ||||||||||||||||
Total Derivative Liabilities | $ | – | $ | 4,227.30 | $ | – | $ | (3,173.3 | ) | $ | 1,054.00 | ||||||||||
Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2014, derivative assets and liabilities shown above also include reductions of $315.8 million and $1.2 billion, respectively, as a result of cash collateral received from and deposited with derivative counterparties. | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | NETTING | ASSETS/ | ||||||||||||||||
LIABILITIES | |||||||||||||||||||||
AT FAIR | |||||||||||||||||||||
VALUE | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale | |||||||||||||||||||||
U.S. Government | $ | 1,917.90 | $ | – | $ | – | $ | – | $ | 1,917.90 | |||||||||||
Obligations of States and Political Subdivisions | – | 4.6 | – | – | 4.6 | ||||||||||||||||
Government Sponsored Agency | – | 17,528.00 | – | – | 17,528.00 | ||||||||||||||||
Non-U.S. Government | – | 310.6 | – | – | 310.6 | ||||||||||||||||
Corporate Debt | – | 3,524.50 | – | – | 3,524.50 | ||||||||||||||||
Covered Bonds | – | 1,943.90 | – | – | 1,943.90 | ||||||||||||||||
Supranational and Non-U.S. Agency Bonds | – | 410 | – | – | 410 | ||||||||||||||||
Residential Mortgage-Backed | – | 48.1 | – | – | 48.1 | ||||||||||||||||
Other Asset-Backed | – | 2,391.80 | – | – | 2,391.80 | ||||||||||||||||
Auction Rate | – | – | 98.9 | – | 98.9 | ||||||||||||||||
Other | – | 214.5 | – | – | 214.5 | ||||||||||||||||
Total Available for Sale | 1,917.90 | 26,376.00 | 98.9 | – | 28,392.80 | ||||||||||||||||
Trading Account | – | 1.7 | – | – | 1.7 | ||||||||||||||||
Total Available for Sale and Trading Securities | 1,917.90 | 26,377.70 | 98.9 | – | 28,394.50 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||
Foreign Exchange Contracts | – | 2,865.70 | – | – | 2,865.70 | ||||||||||||||||
Interest Rate Swaps | – | 237.9 | – | – | 237.9 | ||||||||||||||||
Total Derivatives Assets | – | 3,103.60 | – | (1,369.0 | ) | 1,734.60 | |||||||||||||||
Other Liabilities | |||||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||
Foreign Exchange Contracts | – | 2,905.70 | – | – | 2,905.70 | ||||||||||||||||
Interest Rate Swaps | – | 195.2 | – | – | 195.2 | ||||||||||||||||
Credit Default Swaps | |||||||||||||||||||||
Total Derivative Liabilities | – | 3,100.90 | – | (1,926.0 | ) | 1,174.90 | |||||||||||||||
Contingent Consideration | $ | – | $ | – | $ | 55.4 | $ | – | $ | 55.4 | |||||||||||
Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2013, derivative assets and liabilities shown above also include reductions of $210.7 million and $767.7 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. | |||||||||||||||||||||
The following tables present the changes in Level 3 assets and liabilities for the years ended December 31, 2014, and 2013. | |||||||||||||||||||||
TABLE 43: CHANGES IN LEVEL 3 ASSETS AND LIABILITIES | |||||||||||||||||||||
LEVEL 3 ASSETS | AUCTION RATE SECURITIES | ||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||
Fair Value at January 1 | $ | 98.9 | $ | 97.8 | |||||||||||||||||
Total Gains (Losses): | |||||||||||||||||||||
Included in Earnings(1) | 4.4 | 0.1 | |||||||||||||||||||
Included in Other Comprehensive Income(2) | (1.7 | ) | 3.8 | ||||||||||||||||||
Purchases, Issuances, Sales, and Settlements: | |||||||||||||||||||||
Sales | (55.7 | ) | (0.6 | ) | |||||||||||||||||
Settlements | (27.8 | ) | (2.2 | ) | |||||||||||||||||
Fair Value at December 31 | $ | 18.1 | $ | 98.9 | |||||||||||||||||
(1) Realized gains for the year ended December 31, 2014, of $4.4 million represents gains from the sale of securities of $1.7 million and redemptions by issuers of $2.7 million. Realized gains for the year ended December 31, 2013, of $0.1 million represents gains from redemptions by issuers. Gains on sales are recorded in investment security gains (losses) and gains on redemptions are recorded in interest income within the consolidated statement of income. | |||||||||||||||||||||
(2) Unrealized gains (losses) are included in net unrealized gains (losses) on securities available for sale, within the consolidated statement of comprehensive income. | |||||||||||||||||||||
LEVEL 3 LIABILITIES | CONTINGENT CONSIDERATION | ||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||
Fair Value at January 1 | $ | 55.4 | $ | 50.1 | |||||||||||||||||
Total (Gains) and Losses: | |||||||||||||||||||||
Included in Earnings(1) | (0.1 | ) | 5.3 | ||||||||||||||||||
Purchases, Issuances, Sales, and Settlements: | |||||||||||||||||||||
Settlements | (55.3 | ) | – | ||||||||||||||||||
Fair Value at December 31 | $ | – | $ | 55.4 | |||||||||||||||||
Unrealized (Gains) Losses Included in Earnings Related to Financial Instruments Held at December 31(1) | $ | – | $ | 5.3 | |||||||||||||||||
(1) Gains (losses) are recorded in other operating income (expense) within the consolidated statement of income. | |||||||||||||||||||||
For the years ended December 31, 2014, and 2013, there were no assets or liabilities transferred into or out of Level 3. | |||||||||||||||||||||
Carrying values of assets and liabilities that are not measured at fair value on a recurring basis may be adjusted to fair value in periods subsequent to their initial recognition, for example, to record an impairment of an asset. GAAP requires entities to separately disclose these subsequent fair value measurements and to classify them under the fair value hierarchy. | |||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis at December 31, 2014, and 2013, all of which were categorized as Level 3 under the fair value hierarchy, were comprised of impaired loans whose values were based on real-estate and other available collateral, and of OREO properties. Fair values of real-estate loan collateral were estimated using a market approach typically supported by third-party valuations and property-specific fees and taxes, and were subject to adjustments to reflect management’s judgment as to realizable value. Other loan collateral, which typically consists of accounts receivable, inventory and equipment, is valued using a market approach adjusted for asset specific characteristics and in limited instances third-party valuations are used. | |||||||||||||||||||||
Collateral-based impaired loans and OREO assets that have been adjusted to fair value totaled $14.2 million and $4.1 million, respectively, at December 31, 2014, and $34.0 million and $1.4 million, respectively, at December 31, 2013. Assets measured at fair value on a nonrecurring basis reflect management’s judgment as to realizable value. | |||||||||||||||||||||
The following table provides the fair value of, and the valuation technique, significant unobservable inputs, and quantitative information used to develop the significant unobservable inputs for, Northern Trust’s Level 3 assets that were measured at fair value on a nonrecurring basis as of December 31, 2014. | |||||||||||||||||||||
TABLE 44: LEVEL 3 NONRECURRING BASIS SIGNIFICANT UNOBSERVABLE INPUTS | |||||||||||||||||||||
FINANCIAL INSTRUMENT | FAIR VALUE | VALUATION TECHNIQUE | UNOBSERVABLE INPUT | RANGE OF DISCOUNTS APPLIED | |||||||||||||||||
Loans | $14.2 million | Market Approach | Discount to reflect realizable value | 15% – 25% | |||||||||||||||||
OREO | $4.1 million | Market Approach | Discount to reflect realizable value | 15% – 20% | |||||||||||||||||
Fair Value of Financial Instruments. GAAP requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate fair value. It excludes from this requirement nonfinancial assets and liabilities, as well as a wide range of franchise, relationship, and intangible values that add value to Northern Trust. Accordingly, the required fair value disclosures provide only a partial estimate of the fair value of Northern Trust. Financial instruments recorded at fair value on Northern Trust’s consolidated balance sheet are discussed above. The following methods and assumptions were used in estimating the fair values of financial instruments that are not carried at fair value. | |||||||||||||||||||||
Held to Maturity Securities. The fair values of held to maturity securities were modeled by external pricing vendors, or in limited cases internally, using widely accepted models which are based on an income approach that incorporates current market yield curves. | |||||||||||||||||||||
Loans (excluding lease receivables). The fair value of the loan portfolio was estimated using an income approach (discounted cash flow) that incorporates current market rates offered by Northern Trust as of the date of the consolidated financial statements. The fair values of all loans were adjusted to reflect current assessments of loan collectability. | |||||||||||||||||||||
Federal Reserve and Federal Home Loan Bank Stock. The fair values of Federal Reserve and Federal Home Loan Bank stock are equal to their carrying values which represent redemption value. | |||||||||||||||||||||
Community Development Investments. The fair values of these instruments were estimated using an income approach (discounted cash flow) that incorporates current market rates. | |||||||||||||||||||||
Employee Benefit and Deferred Compensation. These assets include U.S. treasury securities and investments in mutual and collective trust funds held to fund certain supplemental employee benefit obligations and deferred compensation plans. Fair values of U.S. treasury securities were determined using quoted, active market prices for identical securities. The fair values of investments in mutual and collective trust funds were valued at the funds’ net asset values based on a market approach. | |||||||||||||||||||||
Savings Certificates and Other Time Deposits. The fair values of these instruments were estimated using an income approach (discounted cash flow) that incorporates market interest rates currently offered by Northern Trust for deposits with similar maturities. | |||||||||||||||||||||
Senior Notes, Subordinated Debt, and Floating Rate Capital Debt. Fair values were determined using a market approach based on quoted market prices, when available. If quoted market prices were not available, fair values were based on quoted market prices for comparable instruments. | |||||||||||||||||||||
Federal Home Loan Bank Borrowings. The fair values of these instruments were estimated using an income approach (discounted cash flow) that incorporates market interest rates available to Northern Trust. | |||||||||||||||||||||
Loan Commitments. The fair values of loan commitments represent the estimated costs to terminate or otherwise settle the obligations with a third party adjusted for any related allowance for credit losses. | |||||||||||||||||||||
Standby Letters of Credit. The fair values of standby letters of credit are measured as the amount of unamortized fees on these instruments, inclusive of the related allowance for credit losses. Fees are determined by applying basis points to the principal amounts of the letters of credit. | |||||||||||||||||||||
Financial Instruments Valued at Carrying Value. Due to their short maturity, the carrying values of certain financial instruments approximated their fair values. These financial instruments include cash and due from banks; federal funds sold and securities purchased under agreements to resell, interest-bearing deposits with banks, Federal Reserve deposits and other interest-bearing assets; client security settlement receivables; non-U.S. offices interest-bearing deposits; federal funds purchased; securities sold under agreements to repurchase; and other borrowings (includes term federal funds purchased, and other short-term borrowings). The fair values of demand, noninterest-bearing, savings, and money market deposits represent the amounts payable on demand as of the reporting date, although such deposits are typically priced at a premium in banking industry consolidations. | |||||||||||||||||||||
The following tables summarize the fair values of all financial instruments. | |||||||||||||||||||||
TABLE 45: FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||
DECEMBER 31, 2014 | |||||||||||||||||||||
FAIR VALUE | |||||||||||||||||||||
(In Millions) | BOOK VALUE | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||||||
FAIR VALUE | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and Due from Banks | $ | 3,050.60 | $ | 3,050.60 | $ | 3,050.60 | $ | – | $ | – | |||||||||||
Federal Funds Sold and Resell Agreements | 1,062.70 | 1,062.70 | – | 1,062.70 | – | ||||||||||||||||
Interest-Bearing Deposits with Banks | 14,928.30 | 14,928.30 | – | 14,928.30 | – | ||||||||||||||||
Federal Reserve Deposits | 17,386.30 | 17,386.30 | – | 17,386.30 | – | ||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale (Note) | 29,558.50 | 29,558.50 | 4,506.90 | 25,033.50 | 18.1 | ||||||||||||||||
Held to Maturity | 4,170.80 | 4,176.10 | – | 4,176.10 | – | ||||||||||||||||
Trading Account | 4.7 | 4.7 | – | 4.7 | – | ||||||||||||||||
Loans (excluding Leases) | |||||||||||||||||||||
Held for Investment | 30,458.00 | 30,600.40 | – | – | 30,600.40 | ||||||||||||||||
Held for Sale | 2.5 | 2.5 | – | – | 2.5 | ||||||||||||||||
Client Security Settlement Receivables | 1,568.80 | 1,568.80 | – | 1,568.80 | – | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Federal Reserve and Federal Home Loan Bank Stock | 207.5 | 207.5 | – | 207.5 | – | ||||||||||||||||
Community Development Investments | 209.9 | 210.8 | – | 210.8 | – | ||||||||||||||||
Employee Benefit and Deferred Compensation | 143.2 | 146.7 | 96.7 | 50 | – | ||||||||||||||||
LIABILITIES | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Demand, Noninterest-Bearing, Savings and Money Market | $ | 41,454.60 | $ | 41,454.60 | $ | 41,454.60 | $ | – | $ | – | |||||||||||
Savings Certificates and Other Time | 1,757.40 | 1,757.00 | – | 1,757.00 | – | ||||||||||||||||
Non-U.S. Offices Interest-Bearing | 47,545.00 | 47,545.00 | – | 47,545.00 | – | ||||||||||||||||
Federal Funds Purchased | 932.9 | 932.9 | – | 932.9 | – | ||||||||||||||||
Securities Sold under Agreements to Repurchase | 885.1 | 885.1 | – | 885.1 | – | ||||||||||||||||
Other Borrowings | 1,685.20 | 1,686.20 | – | 1,686.20 | – | ||||||||||||||||
Senior Notes | 1,497.00 | 1,541.80 | – | 1,541.80 | – | ||||||||||||||||
Long Term Debt (excluding Leases) | |||||||||||||||||||||
Subordinated Debt | 1,583.30 | 1,583.40 | – | 1,583.40 | – | ||||||||||||||||
Floating Rate Capital Debt | 277.2 | 242.8 | – | 242.8 | – | ||||||||||||||||
Other Liabilities | |||||||||||||||||||||
Standby Letters of Credit | 60.1 | 60.1 | – | – | 60.1 | ||||||||||||||||
Loan Commitments | 28.3 | 28.3 | – | – | 28.3 | ||||||||||||||||
DERIVATIVE INSTRUMENTS | |||||||||||||||||||||
Asset/Liability Management | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | $ | 125.7 | $ | 125.7 | $ | – | $ | 125.7 | $ | – | |||||||||||
Liabilities | 23.5 | 23.5 | – | 23.5 | – | ||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||
Assets | 126.8 | 126.8 | – | 126.8 | – | ||||||||||||||||
Liabilities | 30.5 | 30.5 | – | 30.5 | – | ||||||||||||||||
Client-Related and Trading | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | 4,149.50 | 4,149.50 | – | 4,149.50 | – | ||||||||||||||||
Liabilities | 4,072.00 | 4,072.00 | – | 4,072.00 | – | ||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||
Assets | 105.5 | 105.5 | – | 105.5 | – | ||||||||||||||||
Liabilities | 101.3 | 101.3 | – | 101.3 | – | ||||||||||||||||
Note: Refer to the table located on page 87 for the disaggregation of available for sale securities. | |||||||||||||||||||||
DECEMBER 31, 2013 | |||||||||||||||||||||
(In Millions) | FAIR VALUE | ||||||||||||||||||||
BOOK VALUE | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | |||||||||||||||||
FAIR VALUE | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and Due from Banks | $ | 3,162.40 | $ | 3,162.40 | $ | 3,162.40 | $ | – | $ | – | |||||||||||
Federal Funds Sold and Resell Agreements | 529.6 | 529.6 | – | 529.6 | – | ||||||||||||||||
Interest-Bearing Deposits with Banks | 19,397.40 | 19,397.40 | – | 19,397.40 | – | ||||||||||||||||
Federal Reserve Deposits | 12,911.50 | 12,911.50 | – | 12,911.50 | – | ||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale (Note) | 28,392.80 | 28,392.80 | 1,917.90 | 26,376.00 | 98.9 | ||||||||||||||||
Held to Maturity | 2,325.80 | 2,321.40 | – | 2,321.40 | – | ||||||||||||||||
Trading Account | 1.7 | 1.7 | – | 1.7 | – | ||||||||||||||||
Loans (excluding Leases) | |||||||||||||||||||||
Held for Investment | 28,136.50 | 28,147.20 | – | – | 28,147.20 | ||||||||||||||||
Held for Sale | – | – | – | – | – | ||||||||||||||||
Client Security Settlement Receivables | 1,355.20 | 1,355.20 | – | 1,355.20 | – | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Federal Reserve and Federal Home Loan Bank Stock | 194.7 | 194.7 | – | 194.7 | – | ||||||||||||||||
Community Development Investments | 228.1 | 227.8 | – | 227.8 | – | ||||||||||||||||
Employee Benefit and Deferred Compensation | 132.7 | 126.9 | 79.3 | 47.6 | – | ||||||||||||||||
LIABILITIES | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Demand, Noninterest-Bearing, Savings and Money Market | $ | 33,762.00 | $ | 33,762.00 | $ | 33,762.00 | $ | – | $ | – | |||||||||||
Savings Certificates and Other Time | 1,874.40 | 1,877.10 | – | 1,877.10 | – | ||||||||||||||||
Non-U.S. Offices Interest-Bearing | 48,461.70 | 48,461.70 | – | 48,461.70 | – | ||||||||||||||||
Federal Funds Purchased | 965.1 | 965.1 | – | 965.1 | – | ||||||||||||||||
Securities Sold under Agreements to Repurchase | 917.3 | 917.3 | – | 917.3 | – | ||||||||||||||||
Other Borrowings | 1,558.60 | 1,558.60 | – | 1,558.60 | – | ||||||||||||||||
Senior Notes | 1,996.60 | 1,989.30 | – | 1,989.30 | – | ||||||||||||||||
Long Term Debt (excluding Leases) | |||||||||||||||||||||
Subordinated Debt | 1,537.30 | 1,563.50 | – | 1,563.50 | – | ||||||||||||||||
Federal Home Loan Bank Borrowings | 135 | 137.2 | – | 137.2 | – | ||||||||||||||||
Floating Rate Capital Debt | 277.1 | 230.2 | – | 230.2 | – | ||||||||||||||||
Other Liabilities | |||||||||||||||||||||
Standby Letters of Credit | 59.6 | 59.6 | – | – | 59.6 | ||||||||||||||||
Contingent Consideration | 55.4 | 55.4 | – | – | 55.4 | ||||||||||||||||
Loan Commitments | 35.7 | 35.7 | – | – | 35.7 | ||||||||||||||||
DERIVATIVE INSTRUMENTS | |||||||||||||||||||||
Asset/Liability Management | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | $ | 21 | $ | 21 | $ | – | $ | 21 | $ | – | |||||||||||
Liabilities | 59.5 | 59.5 | – | 59.5 | – | ||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||
Assets | 115.1 | 115.1 | – | 115.1 | – | ||||||||||||||||
Liabilities | 78.2 | 78.2 | – | 78.2 | – | ||||||||||||||||
Client-Related and Trading | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | 2,844.70 | 2,844.70 | – | 2,844.70 | – | ||||||||||||||||
Liabilities | 2,846.20 | 2,846.20 | – | 2,846.20 | – | ||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||
Assets | 122.8 | 122.8 | – | 122.8 | – | ||||||||||||||||
Liabilities | 117 | 117 | – | 117 | – | ||||||||||||||||
Note: Refer to the table located on page 88 for the disaggregation of available for sale securities. |
Securities
Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Securities | Note 4 – Securities | ||||||||||||||||||||||||
Securities Available for Sale. The following tables provide the amortized cost, fair values, and remaining maturities of securities available for sale. | |||||||||||||||||||||||||
TABLE 46: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF SECURITIES AVAILABLE FOR SALE | |||||||||||||||||||||||||
DECEMBER 31, 2014 | |||||||||||||||||||||||||
(In Millions) | AMORTIZED | GROSS | GROSS | FAIR | |||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||
GAINS | LOSSES | ||||||||||||||||||||||||
U.S. Government | $ | 4,493.50 | $ | 15.1 | $ | 1.7 | $ | 4,506.90 | |||||||||||||||||
Obligations of States and Political Subdivisions | 4.5 | 0.1 | – | 4.6 | |||||||||||||||||||||
Government Sponsored Agency | 16,326.40 | 82.3 | 19.5 | 16,389.20 | |||||||||||||||||||||
Non-U.S. Government | 309.5 | 0.9 | – | 310.4 | |||||||||||||||||||||
Corporate Debt | 3,617.50 | 1.8 | 41.6 | 3,577.70 | |||||||||||||||||||||
Covered Bonds | 1,899.90 | 7.9 | 0.3 | 1,907.50 | |||||||||||||||||||||
Supranational and Non-U.S. Agency Bonds | 360 | 1.5 | 0.9 | 360.6 | |||||||||||||||||||||
Residential Mortgage-Backed | 6.9 | – | 0.5 | 6.4 | |||||||||||||||||||||
Other Asset-Backed | 2,321.80 | 0.5 | 1 | 2,321.30 | |||||||||||||||||||||
Auction Rate | 18.4 | 0.5 | 0.8 | 18.1 | |||||||||||||||||||||
Other | 155.7 | 0.3 | 0.2 | 155.8 | |||||||||||||||||||||
Total | $ | 29,514.10 | $ | 110.9 | $ | 66.5 | $ | 29,558.50 | |||||||||||||||||
DECEMBER 31, 2013 | |||||||||||||||||||||||||
(In Millions) | AMORTIZED | GROSS | GROSS | FAIR | |||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||
GAINS | LOSSES | ||||||||||||||||||||||||
U.S. Government | $ | 1,896.70 | $ | 22.6 | $ | 1.4 | $ | 1,917.90 | |||||||||||||||||
Obligations of States and Political Subdivisions | 4.5 | 0.1 | – | 4.6 | |||||||||||||||||||||
Government Sponsored Agency | 17,495.20 | 80.7 | 47.9 | 17,528.00 | |||||||||||||||||||||
Non-U.S. Government | 307 | 3.6 | – | 310.6 | |||||||||||||||||||||
Corporate Debt | 3,615.20 | 10.5 | 101.2 | 3,524.50 | |||||||||||||||||||||
Covered Bonds | 1,898.90 | 50.9 | 5.9 | 1,943.90 | |||||||||||||||||||||
Supranational and Non-U.S. Agency Bonds | 410 | 1.7 | 1.7 | 410 | |||||||||||||||||||||
Residential Mortgage-Backed | 52.4 | 0.1 | 4.4 | 48.1 | |||||||||||||||||||||
Other Asset-Backed | 2,390.80 | 1.4 | 0.4 | 2,391.80 | |||||||||||||||||||||
Auction Rate | 97.5 | 2.2 | 0.8 | 98.9 | |||||||||||||||||||||
Other | 214.1 | 0.4 | – | 214.5 | |||||||||||||||||||||
Total | $ | 28,382.30 | $ | 174.2 | $ | 163.7 | $ | 28,392.80 | |||||||||||||||||
TABLE 47: REMAINING MATURITY OF SECURITIES AVAILABLE FOR SALE | |||||||||||||||||||||||||
DECEMBER 31, 2014 | DECEMBER 31, 2013 | ||||||||||||||||||||||||
(In Millions) | AMORTIZED | FAIR | AMORTIZED | FAIR | |||||||||||||||||||||
COST | VALUE | COST | VALUE | ||||||||||||||||||||||
Due in One Year or Less | $ | 7,467.40 | $ | 7,487.90 | $ | 9,552.90 | $ | 9,565.70 | |||||||||||||||||
Due After One Year Through Five Years | 17,132.70 | 17,157.60 | 15,011.40 | 15,067.20 | |||||||||||||||||||||
Due After Five Years Through Ten Years | 3,394.20 | 3,418.00 | 2,545.90 | 2,494.10 | |||||||||||||||||||||
Due After Ten Years | 1,519.80 | 1,495.00 | 1,272.10 | 1,265.80 | |||||||||||||||||||||
Total | $ | 29,514.10 | $ | 29,558.50 | $ | 28,382.30 | $ | 28,392.80 | |||||||||||||||||
Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. | |||||||||||||||||||||||||
Securities Held to Maturity. The following tables provide the amortized cost, fair values and remaining maturities of securities held to maturity. | |||||||||||||||||||||||||
TABLE 48: RECONCILIATION OF AMORTIZED COST TO FAIR VALUES OF SECURITIES HELD TO MATURITY | |||||||||||||||||||||||||
DECEMBER 31, 2014 | |||||||||||||||||||||||||
(In Millions) | AMORTIZED | GROSS | GROSS | FAIR | |||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||
GAINS | LOSSES | ||||||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 121.9 | $ | 7.4 | $ | – | $ | 129.3 | |||||||||||||||||
Government Sponsored Agency | 18.4 | 1.1 | – | 19.5 | |||||||||||||||||||||
Non-U.S. Government | 1,281.60 | 6.6 | 0.4 | 1,287.80 | |||||||||||||||||||||
Certificates of Deposit | 924.3 | 0.1 | 0.1 | 924.3 | |||||||||||||||||||||
Supranational and Non-U.S. Agency Bonds | 1,745.80 | 10.9 | 0.5 | 1,756.20 | |||||||||||||||||||||
Other | 78.8 | 0.3 | 20.1 | 59 | |||||||||||||||||||||
Total | $ | 4,170.80 | $ | 26.4 | $ | 21.1 | $ | 4,176.10 | |||||||||||||||||
DECEMBER 31, 2013 | |||||||||||||||||||||||||
(In Millions) | AMORTIZED | GROSS | GROSS | FAIR | |||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||
GAINS | LOSSES | ||||||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 225.2 | $ | 10.3 | $ | – | $ | 235.5 | |||||||||||||||||
Government Sponsored Agency | 35.9 | 1.1 | – | 37 | |||||||||||||||||||||
Non-U.S. Government | 722 | 0.8 | 1.1 | 721.7 | |||||||||||||||||||||
Certificates of Deposit | 698.1 | – | 0.2 | 697.9 | |||||||||||||||||||||
Supranational and Non-U.S. Agency Bonds | 584.7 | – | 3.2 | 581.5 | |||||||||||||||||||||
Other | 59.9 | 0.1 | 12.2 | 47.8 | |||||||||||||||||||||
Total | $ | 2,325.80 | $ | 12.3 | $ | 16.7 | $ | 2,321.40 | |||||||||||||||||
TABLE 49: REMAINING MATURITY OF SECURITIES HELD TO MATURITY | |||||||||||||||||||||||||
DECEMBER 31, 2014 | DECEMBER 31, 2013 | ||||||||||||||||||||||||
(In Millions) | AMORTIZED | FAIR | AMORTIZED | FAIR | |||||||||||||||||||||
COST | VALUE | COST | VALUE | ||||||||||||||||||||||
Due in One Year or Less | $ | 1,503.50 | $ | 1,504.70 | $ | 1,009.90 | $ | 1,011.20 | |||||||||||||||||
Due After One Year Through Five Years | 2,602.80 | 2,622.30 | 1,254.90 | 1,257.00 | |||||||||||||||||||||
Due After Five Years Through Ten Years | 23.5 | 21.5 | 26.1 | 27.1 | |||||||||||||||||||||
Due After Ten Years | 41 | 27.6 | 34.9 | 26.1 | |||||||||||||||||||||
Total | $ | 4,170.80 | $ | 4,176.10 | $ | 2,325.80 | $ | 2,321.40 | |||||||||||||||||
Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. | |||||||||||||||||||||||||
Securities held to maturity consist of debt securities that management intends to, and Northern Trust has the ability to, hold until maturity. | |||||||||||||||||||||||||
Investment Security Gains and Losses. Net investment security losses of $4.3 million were recognized in 2014 and include $4.2 million of charges related to the OTTI of certain Community Reinvestment Act (CRA) eligible held to maturity securities. Net investment security losses of $1.5 million, and $1.7 million were recognized in 2013, and 2012, respectively. Losses in 2012 include $3.3 million of OTTI losses. There were no OTTI losses in 2013. Proceeds of $851.8 million from the sale of securities in 2014 resulted in gross realized gains and losses of $2.8 million and $2.9 million, respectively. Proceeds of $0.5 billion from the sale of securities in 2013 resulted in gross realized gains and losses of $0.8 million and $2.3 million, respectively. Proceeds of $2.7 billion from the sale of securities in 2012 resulted in gross realized gains and losses of $23.5 million and $21.9 million, respectively. | |||||||||||||||||||||||||
Securities with Unrealized Losses. The following tables provide information regarding securities that had been in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of December 31, 2014, and 2013. | |||||||||||||||||||||||||
TABLE 50: SECURITIES WITH UNREALIZED LOSSES | |||||||||||||||||||||||||
AS OF DECEMBER 31, 2014 | LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | TOTAL | ||||||||||||||||||||||
(In Millions) | FAIR | UNREALIZED | FAIR | UNREALIZED | FAIR | UNREALIZED | |||||||||||||||||||
VALUE | LOSSES | VALUE | LOSSES | VALUE | LOSSES | ||||||||||||||||||||
U.S. Government | $ | 998.2 | $ | 1.7 | $ | – | $ | – | $ | 998.2 | $ | 1.7 | |||||||||||||
Government Sponsored Agency | 2,344.90 | 6.6 | 1,730.00 | 12.9 | 4,074.90 | 19.5 | |||||||||||||||||||
Non-U.S. Government | 292.9 | 0.4 | – | – | 292.9 | 0.4 | |||||||||||||||||||
Corporate Debt | 1,244.50 | 3.9 | 1,338.80 | 37.7 | 2,583.30 | 41.6 | |||||||||||||||||||
Covered Bonds | 142.3 | 0.2 | 10 | 0.1 | 152.3 | 0.3 | |||||||||||||||||||
Supranational and Non-U.S. Agency Bonds | 313.2 | 0.3 | 175.5 | 1.1 | 488.7 | 1.4 | |||||||||||||||||||
Residential Mortgage-Backed | – | – | 4.5 | 0.5 | 4.5 | 0.5 | |||||||||||||||||||
Other Asset-Backed | 1,297.60 | 1 | – | – | 1,297.60 | 1 | |||||||||||||||||||
Certificates of Deposit | 438.6 | 0.1 | – | – | 438.6 | 0.1 | |||||||||||||||||||
Auction Rate | 2.4 | 0.2 | 4.7 | 0.6 | 7.1 | 0.8 | |||||||||||||||||||
Other | 27.1 | 12.1 | 45.6 | 8.2 | 72.7 | 20.3 | |||||||||||||||||||
Total | $ | 7,101.70 | $ | 26.5 | $ | 3,309.10 | $ | 61.1 | $ | 10,410.80 | $ | 87.6 | |||||||||||||
AS OF DECEMBER 31, 2013 | LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | TOTAL | ||||||||||||||||||||||
(In Millions) | FAIR | UNREALIZED | FAIR | UNREALIZED | FAIR | UNREALIZED | |||||||||||||||||||
VALUE | LOSSES | VALUE | LOSSES | VALUE | LOSSES | ||||||||||||||||||||
U.S. Government | $ | 896.4 | $ | 1.4 | $ | – | $ | – | $ | 896.4 | $ | 1.4 | |||||||||||||
Government Sponsored Agency | 4,340.80 | 42.6 | 413.7 | 5.3 | 4,754.50 | 47.9 | |||||||||||||||||||
Non-U.S. Government | 176.7 | 1.1 | – | – | 176.7 | 1.1 | |||||||||||||||||||
Corporate Debt | 1,759.50 | 85.4 | 267 | 15.8 | 2,026.50 | 101.2 | |||||||||||||||||||
Covered Bonds | 278.8 | 5.7 | 9.9 | 0.2 | 288.7 | 5.9 | |||||||||||||||||||
Supranational and Non-U.S. Agency Bonds | 612.7 | 4.9 | – | – | 612.7 | 4.9 | |||||||||||||||||||
Residential Mortgage-Backed | – | – | 42 | 4.4 | 42 | 4.4 | |||||||||||||||||||
Other Asset-Backed | 677 | 0.4 | – | – | 677 | 0.4 | |||||||||||||||||||
Certificates of Deposit | 684.2 | 0.2 | – | – | 684.2 | 0.2 | |||||||||||||||||||
Auction Rate | 22.1 | 0.1 | 14 | 0.7 | 36.1 | 0.8 | |||||||||||||||||||
Other | 25.7 | 4 | 29.5 | 8.2 | 55.2 | 12.2 | |||||||||||||||||||
Total | $ | 9,473.90 | $ | 145.8 | $ | 776.1 | $ | 34.6 | $ | 10,250.00 | $ | 180.4 | |||||||||||||
As of December 31, 2014, 515 securities with a combined fair value of $10.4 billion were in an unrealized loss position, with their unrealized losses totaling $87.6 million. Unrealized losses of $41.6 million within corporate debt securities primarily reflect widened credit spreads and higher market rates since purchase; 40% of the corporate debt portfolio is backed by guarantees provided by U.S. and non-U.S. governmental entities. Unrealized losses of $19.5 million related to government sponsored agency securities are primarily attributable to changes in market rates since their purchase. | |||||||||||||||||||||||||
Unrealized losses on residential mortgage-backed securities totaling $0.5 million reflect the impact of wider credit and liquidity spreads on the valuations of one residential mortgage-backed security since purchase, with it having been in an unrealized loss position for more than 12 months. Securities classified as “other asset-backed” at December 31, 2014 had average lives of less than 5 years, and 100% were rated triple-A. | |||||||||||||||||||||||||
The majority of the $20.3 million of unrealized losses in securities classified as “other” at December 31, 2014, relate to securities primarily purchased at a premium or par by Northern Trust for compliance with the Community Reinvestment Act (CRA). Unrealized losses on these CRA related other securities are attributable to yields that are below market rates for the purpose of supporting institutions and programs that benefit low to moderate income communities within Northern Trust’s market area. Unrealized losses of $0.8 million related to auction rate securities primarily reflect reduced market liquidity as a majority of auctions continue to fail preventing holders from liquidating their investments at par. The remaining unrealized losses on Northern Trust’s securities portfolio as of December 31, 2014, are attributable to changes in overall market interest rates, increased credit spreads, or reduced market liquidity. As of December 31, 2014, Northern Trust does not intend to sell any investment in an unrealized loss position and it is not more likely than not that Northern Trust will be required to sell any such investment before the recovery of its amortized cost basis, which may be maturity. | |||||||||||||||||||||||||
Security impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible OTTI. A determination as to whether a security’s decline in market value is other-than-temporary takes into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is other-than-temporary include, but are not limited to, the length of time the security has been impaired; the severity of the impairment; the cause of the impairment and the financial condition and near-term prospects of the issuer; activity in the market of the issuer which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that it will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if OTTI has occurred. | |||||||||||||||||||||||||
While all securities are considered, the process for identifying credit impairment within CRA eligible mortgage-backed securities, the security type for which Northern Trust has recognized all of the OTTI in 2014, incorporates an expected loss approach using discounted cash flows on the underlying collateral pools. To evaluate whether an unrealized loss on CRA mortgage-backed securities is other-than-temporary, a calculation of the security’s present value is made using current pool data, the current delinquency pipeline, default rates and loan loss severities based on the historical performance of like collateral, and Northern Trust’s outlook for the housing market and the overall economy. If the present value of the collateral pools was found to be less than the current amortized cost of the security, a credit-related OTTI loss would be recorded in earnings equal to the difference between the two amounts. | |||||||||||||||||||||||||
Impairments of CRA mortgage-backed securities are influenced by a number of factors, including but not limited to, U.S. economic and housing market performance, pool credit enhancement level, year of origination, and estimated credit quality of the collateral. The factors used in estimating losses related to CRA mortgage-backed securities vary by vintage of loan origination and collateral quality. | |||||||||||||||||||||||||
As of December 31, 2014, impairment estimates for CRA mortgage-backed securities were developed using default and loss severity rates sourced from industry mortgage data. Ultimate recovery value of the securities was determined by applying default and severity rates against remaining collateral balances in the pools. An expected loss amount was calculated by applying loss severity rates on defaulted amounts. Lastly, book values were compared against collateral values net of expected losses in order to determine OTTI. | |||||||||||||||||||||||||
The following describes Northern Trust’s process for identifying credit impairment within non-agency residential mortgage-backed securities, the security type for which Northern Trust has previously recognized the majority of its OTTI. To determine if an unrealized loss on a non-agency residential mortgage-backed security is other-than-temporary, economic models are used to perform cash flow analyses by developing multiple scenarios in order to create reasonable forecasts of the security’s future performance using available data including servicers’ loan charge off patterns, prepayment speeds, annualized default rates, each security’s current delinquency pipeline, the delinquency pipeline’s growth rate, the roll rate from delinquency to default, loan loss severities and historical performance of like collateral, along with Northern Trust’s outlook for the housing market and the overall economy. If the present value of future cash flows projected as a result of this analysis is less than the current amortized cost of the security, a credit-related OTTI loss is recorded in earnings equal to the difference between the two amounts. | |||||||||||||||||||||||||
Impairments of non-agency residential mortgage-backed securities are influenced by a number of factors, including but not limited to, U.S. economic and housing market performance, security credit enhancement level, insurance coverage, year of origination, and type of collateral. The factors used in estimating losses on non-agency residential mortgage-backed securities vary by year of origination and type of collateral. | |||||||||||||||||||||||||
As of December 31, 2014, loss estimates for prime and 2nd lien collateral portfolios were developed using default roll rates, determined primarily by the stage of delinquency of the underlying instrument, that generally assumed ultimate default rates approximating 5% to 30% for current loans; 30% for loans 30 to 60 days delinquent; 80% for loans 60 to 90 days delinquent; 90% for loans delinquent greater than 90 days; and 100% for OREO properties and loans that are in foreclosure. | |||||||||||||||||||||||||
December 31, 2014, amortized cost, weighted average ultimate default rates, and impairment severity rates for the non-agency residential mortgage-backed securities portfolio, by security type, are provided in the following table. | |||||||||||||||||||||||||
TABLE 51: NON-AGENCY RESIDENTIAL MORTGAGE-BACKED SECURITIES | |||||||||||||||||||||||||
DECEMBER 31, 2014 | |||||||||||||||||||||||||
LOSS SEVERITY RATES | |||||||||||||||||||||||||
($ In Millions) | AMORTIZED | WEIGHTED AVERAGE | LOW | HIGH | WEIGHTED | ||||||||||||||||||||
COST | ULTIMATE DEFAULT | AVERAGE | |||||||||||||||||||||||
RATES | |||||||||||||||||||||||||
Prime | $ | 1.9 | 5 | % | 32.1 | % | 32.1 | % | 32.1 | % | |||||||||||||||
2nd Lien | 5 | 32.2 | 99 | 99 | 99 | ||||||||||||||||||||
Total Non-Agency Residential Mortgage-Backed Securities | $ | 6.9 | 25.3 | % | 32.1 | % | 99 | % | 81.1 | % | |||||||||||||||
Northern Trust’s processes for identifying credit impairment within auction rate securities are largely consistent with the processes utilized for non-agency residential mortgage-backed securities and include analyses of loss severities and default rates adjusted for the type of underlying loan and the presence of government guarantees, as applicable. There were $4.2 million of OTTI losses recognized in 2014, all of which related to CRA eligible mortgage-backed securities. No OTTI losses were recognized during the year ended December 31, 2013. There were $3.3 million of OTTI losses in 2012, of which $1.7 million related to non-agency residential mortgage-backed securities and $1.6 million related to auction rate securities. | |||||||||||||||||||||||||
Credit Losses on Debt Securities. The table below provides information regarding total other-than-temporarily impaired securities, including noncredit-related amounts recognized in other comprehensive income and net impairment losses recognized in earnings, for the years ended December 31, 2014, 2013, and 2012. | |||||||||||||||||||||||||
TABLE 52: NET IMPAIRMENT LOSSES RECOGNIZED IN EARNINGS | DECEMBER 31, | ||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Changes in Other-Than-Temporary Impairment Losses(1) | $ | (4.9 | ) | $ | – | $ | (2.7 | ) | |||||||||||||||||
Noncredit-related Losses Recorded in / (Reclassified from) OCI(2) | 0.7 | – | (0.6 | ) | |||||||||||||||||||||
Net Impairment Losses Recognized in Earnings | $ | (4.2 | ) | $ | – | $ | (3.3 | ) | |||||||||||||||||
(1) For initial other-than-temporary impairments in the respective period, the balance includes the excess of the amortized cost over the fair value of the impaired securities. For subsequent impairments of the same security, the balance includes any additional changes in fair value of the security subsequent to its most recently recorded OTTI. | |||||||||||||||||||||||||
(2) For initial other-than-temporary impairments in the respective period, the balance includes the portion of the excess of amortized cost over the fair value of the impaired securities that was recorded in OCI. For subsequent impairments of the same security, the balance includes additional changes in OCI for that security subsequent to its most recently recorded OTTI. | |||||||||||||||||||||||||
Provided in the table below are the cumulative credit-related losses recognized in earnings on debt securities other-than-temporarily impaired. | |||||||||||||||||||||||||
TABLE 53: CUMULATIVE CREDIT-RELATED LOSSES ON SECURITIES HELD | YEAR ENDED DECEMBER 31, | ||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||
Cumulative Credit-Related Losses on Securities Held – Beginning of Year | $ | 8.8 | $ | 42.3 | |||||||||||||||||||||
Plus: Losses on Newly Identified Impairments | 1.8 | – | |||||||||||||||||||||||
Additional Losses on Previously Identified Impairments | 2.4 | – | |||||||||||||||||||||||
Less: Current and Prior Period Losses on Securities Sold During the Year | (7.8 | ) | (33.5 | ) | |||||||||||||||||||||
Cumulative Credit-Related Losses on Securities Held – End of Year | $ | 5.2 | $ | 8.8 |
Securities_Purchased_Under_Agr
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | Note 5 – Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | ||||||||
Securities purchased under agreements to resell and securities sold under agreements to repurchase are recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third party custodians, of securities purchased under agreements to resell. | |||||||||
The following tables summarize information related to securities purchased under agreements to resell and securities sold under agreements to repurchase. | |||||||||
TABLE 54: SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL | |||||||||
($ In Millions) | 2014 | 2013 | |||||||
Balance at December 31 | $ | 1,000.00 | $ | 500 | |||||
Average Balance During the Year | 742.1 | 396.3 | |||||||
Average Interest Rate Earned During the Year | 0.45 | % | 0.46 | % | |||||
Maximum Month-End Balance During the Year | 1,000.00 | 571.5 | |||||||
TABLE 55: SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | |||||||||
($ In Millions) | 2014 | 2013 | |||||||
Balance at December 31 | $ | 885.1 | $ | 917.3 | |||||
Average Balance During the Year | 989.6 | 594.3 | |||||||
Average Interest Rate Paid During the Year | 0.04 | % | 0.07 | % | |||||
Maximum Month-End Balance During the Year | 1,038.10 | 917.3 |
Loans_and_Leases
Loans and Leases | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Loans and Leases | Note 6 – Loans and Leases | ||||||||||||||||||||||||||||||||
Amounts outstanding for loans and leases, by segment and class, are shown below. | |||||||||||||||||||||||||||||||||
TABLE 56: LOANS AND LEASES | DECEMBER 31, | ||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 8,381.90 | $ | 7,375.80 | |||||||||||||||||||||||||||||
Commercial Real Estate | 3,333.30 | 2,955.80 | |||||||||||||||||||||||||||||||
Lease Financing, net | 916.3 | 975.1 | |||||||||||||||||||||||||||||||
Non-U.S. | 1,530.60 | 954.7 | |||||||||||||||||||||||||||||||
Other | 191.5 | 358.6 | |||||||||||||||||||||||||||||||
Total Commercial | 14,353.60 | 12,620.00 | |||||||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 9,782.60 | 10,271.30 | |||||||||||||||||||||||||||||||
Private Client | 7,466.90 | 6,445.60 | |||||||||||||||||||||||||||||||
Other | 37.1 | 48.6 | |||||||||||||||||||||||||||||||
Total Personal | 17,286.60 | 16,765.50 | |||||||||||||||||||||||||||||||
Total Loans and Leases | $ | 31,640.20 | $ | 29,385.50 | |||||||||||||||||||||||||||||
Allowance for Credit Losses Assigned to Loans and Leases | (267.0 | ) | (278.1 | ) | |||||||||||||||||||||||||||||
Net Loans and Leases | $ | 31,373.20 | $ | 29,107.40 | |||||||||||||||||||||||||||||
Residential real estate loans consist of traditional first lien mortgages and equity credit lines that generally require a loan to collateral value of no more than 65% to 80% at inception. Northern Trust’s equity credit line products generally have draw periods of up to 10 years and a balloon payment of any outstanding balance is due at maturity. Payments are interest only with variable interest rates. Northern Trust does not offer equity credit lines that include an option to convert the outstanding balance to an amortizing payment loan. As of December 31, 2014, and 2013, equity credit lines totaled $1.8 billion and $2.0 billion, respectively, and equity credit lines for which first liens were held by Northern Trust represented 89% and 87%, respectively, of the total equity credit lines as of those dates. | |||||||||||||||||||||||||||||||||
Included within the non-U.S., commercial-other, and personal-other classes are short duration advances, primarily related to the processing of custodied client investments, that totaled $1.5 billion and $1.3 billion at December 31, 2014, and 2013, respectively. Demand deposits reclassified as loan balances totaled $92.1 million and $104.1 million at December 31, 2014, and 2013, respectively. Loans classified as held for sale totaled $2.5 million at December 31, 2014. There were no loans classified as held for sale at December 31, 2013. | |||||||||||||||||||||||||||||||||
The components of the net investment in direct finance and leveraged leases are as follows: | |||||||||||||||||||||||||||||||||
TABLE 57: DIRECT FINANCE AND LEVERAGED LEASES | DECEMBER 31, | ||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Direct Finance Leases: | |||||||||||||||||||||||||||||||||
Lease Receivable | $ | 195.4 | $ | 189.4 | |||||||||||||||||||||||||||||
Residual Value | 208.8 | 143.1 | |||||||||||||||||||||||||||||||
Initial Direct Costs | 3.6 | 2.5 | |||||||||||||||||||||||||||||||
Unearned Income | (39.1 | ) | (31.1 | ) | |||||||||||||||||||||||||||||
Investment in Direct Finance Leases | 368.7 | 303.9 | |||||||||||||||||||||||||||||||
Leveraged Leases: | |||||||||||||||||||||||||||||||||
Net Rental Receivable | 413.6 | 544.4 | |||||||||||||||||||||||||||||||
Residual Value | 285.6 | 295.6 | |||||||||||||||||||||||||||||||
Unearned Income | (151.6 | ) | (168.8 | ) | |||||||||||||||||||||||||||||
Investment in Leveraged Leases | 547.6 | 671.2 | |||||||||||||||||||||||||||||||
Lease Financing, net | $ | 916.3 | $ | 975.1 | |||||||||||||||||||||||||||||
The following schedule reflects the future minimum lease payments to be received over the next five years under direct finance leases: | |||||||||||||||||||||||||||||||||
TABLE 58: FUTURE MINIMUM LEASE PAYMENTS | |||||||||||||||||||||||||||||||||
(In Millions) | FUTURE MINIMUM | ||||||||||||||||||||||||||||||||
LEASE PAYMENTS | |||||||||||||||||||||||||||||||||
2015 | $ | 48.4 | |||||||||||||||||||||||||||||||
2016 | 40.4 | ||||||||||||||||||||||||||||||||
2017 | 37.6 | ||||||||||||||||||||||||||||||||
2018 | 29.8 | ||||||||||||||||||||||||||||||||
2019 | 17.9 | ||||||||||||||||||||||||||||||||
Credit Quality Indicators. Credit quality indicators are statistics, measurements or other metrics that provide information regarding the relative credit risk of loans and leases. Northern Trust utilizes a variety of credit quality indicators to assess the credit risk of loans and leases at the segment, class, and individual credit exposure levels. | |||||||||||||||||||||||||||||||||
As part of its credit process, Northern Trust utilizes an internal borrower risk rating system to support identification, approval, and monitoring of credit risk. Borrower risk ratings are used in credit underwriting, management reporting, and the calculation of credit loss allowances and economic capital. | |||||||||||||||||||||||||||||||||
Risk ratings are used for ranking the credit risk of borrowers and the probability of their default. Each borrower is rated using one of a number of ratings models, which consider both quantitative and qualitative factors. The ratings models vary among classes of loans and leases in order to capture the unique risk characteristics inherent within each particular type of credit exposure. Provided below are the more significant performance indicator attributes considered within Northern Trust’s borrower rating models, by loan and lease class. | |||||||||||||||||||||||||||||||||
Ÿ | Commercial and Institutional: leverage, profit margin, liquidity, asset size and capital levels; | ||||||||||||||||||||||||||||||||
Ÿ | Commercial Real Estate: debt service coverage, loan-to-value ratio, leasing status and guarantor support; | ||||||||||||||||||||||||||||||||
Ÿ | Lease Financing and Commercial-Other: leverage, profit margin, liquidity, asset size and capital levels; | ||||||||||||||||||||||||||||||||
Ÿ | Non-U.S.: leverage, profit margin, liquidity, return on assets and capital levels; | ||||||||||||||||||||||||||||||||
Ÿ | Residential Real Estate: payment history, credit bureau scores and loan-to-value ratio; | ||||||||||||||||||||||||||||||||
Ÿ | Private Client: cash flow-to-debt and net worth ratios, leverage and liquidity; and | ||||||||||||||||||||||||||||||||
Ÿ | Personal-Other: cash flow-to-debt and net worth ratios. | ||||||||||||||||||||||||||||||||
While the criteria vary by model, the objective is for the borrower ratings to be consistent in both the measurement and ranking of risk. Each model is calibrated to a master rating scale to support this consistency. Ratings for borrowers not in default range from “1” for the strongest credits to “7” for the weakest non-defaulted credits. Ratings of “8” or “9” are used for defaulted borrowers. Borrower risk ratings are monitored and are revised when events or circumstances indicate a change is required. Risk ratings are generally validated at least annually. | |||||||||||||||||||||||||||||||||
Loan and lease segment and class balances at December 31, 2014, and 2013 are provided below, segregated by borrower ratings into “1 to 3”, “4 to 5”, and “6 to 9” (watch list), categories. | |||||||||||||||||||||||||||||||||
TABLE 59: BORROWER RATINGS | |||||||||||||||||||||||||||||||||
DECEMBER 31, 2014 | DECEMBER 31, 2013 | ||||||||||||||||||||||||||||||||
(In Millions) | 1 TO 3 | 4 TO 5 | 6 TO 9 | TOTAL | 1 TO 3 | 4 TO 5 | 6 TO 9 | TOTAL | |||||||||||||||||||||||||
CATEGORY | CATEGORY | CATEGORY | CATEGORY | CATEGORY | CATEGORY | ||||||||||||||||||||||||||||
(WATCH LIST) | (WATCH LIST) | ||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 5,340.90 | $ | 2,947.30 | $ | 93.7 | $ | 8,381.90 | $ | 4,432.50 | $ | 2,801.50 | $ | 141.8 | $ | 7,375.80 | |||||||||||||||||
Commercial Real Estate | 1,371.70 | 1,861.80 | 99.8 | 3,333.30 | 1,053.70 | 1,748.70 | 153.4 | 2,955.80 | |||||||||||||||||||||||||
Lease Financing, net | 552.5 | 360.3 | 3.5 | 916.3 | 685.7 | 285 | 4.4 | 975.1 | |||||||||||||||||||||||||
Non-U.S. | 636.8 | 892.9 | 0.9 | 1,530.60 | 442.8 | 511.9 | – | 954.7 | |||||||||||||||||||||||||
Other | 108.1 | 83.4 | – | 191.5 | 157.7 | 200.9 | – | 358.6 | |||||||||||||||||||||||||
Total Commercial | 8,010.00 | 6,145.70 | 197.9 | 14,353.60 | 6,772.40 | 5,548.00 | 299.6 | 12,620.00 | |||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 3,148.00 | 6,207.00 | 427.6 | 9,782.60 | 3,204.60 | 6,563.60 | 503.1 | 10,271.30 | |||||||||||||||||||||||||
Private Client | 5,143.80 | 2,311.70 | 11.4 | 7,466.90 | 3,957.60 | 2,481.20 | 6.8 | 6,445.60 | |||||||||||||||||||||||||
Other | 21.1 | 16 | – | 37.1 | 21.2 | 27.4 | – | 48.6 | |||||||||||||||||||||||||
Total Personal | 8,312.90 | 8,534.70 | 439 | 17,286.60 | 7,183.40 | 9,072.20 | 509.9 | 16,765.50 | |||||||||||||||||||||||||
Total Loans and Leases | $ | 16,322.90 | $ | 14,680.40 | $ | 636.9 | $ | 31,640.20 | $ | 13,955.80 | $ | 14,620.20 | $ | 809.5 | $ | 29,385.50 | |||||||||||||||||
Loans and leases in the “1 to 3” category are expected to exhibit minimal to modest probabilities of default and are characterized by borrowers having the strongest financial qualities, including above average financial flexibility, cash flows and capital levels. Borrowers assigned these ratings are anticipated to experience very little to moderate financial pressure in adverse down cycle scenarios. As a result of these characteristics, borrowers within this category exhibit a minimal to modest likelihood of loss. | |||||||||||||||||||||||||||||||||
Loans and leases in the “4 to 5” category are expected to exhibit moderate to acceptable probabilities of default and are characterized by borrowers with less financial flexibility than those in the “1 to 3” category. Cash flows and capital levels are generally sufficient to allow for borrowers to meet current requirements, but have reduced cushion in adverse down cycle scenarios. As a result of these characteristics, borrowers within this category exhibit a moderate likelihood of loss. | |||||||||||||||||||||||||||||||||
Loans and leases in the watch list category have elevated credit risk profiles that are monitored through internal watch lists, and consist of credits with borrower ratings of “6 to 9”. These credits, which include all nonperforming credits, are expected to exhibit minimally acceptable probabilities of default, elevated risk of default, or are currently in default. Borrowers associated with these risk profiles that are not currently in default have limited financial flexibility. Cash flows and capital levels range from acceptable to potentially insufficient to meet current requirements, particularly in adverse down cycle scenarios. As a result of these characteristics, borrowers in this category exhibit an elevated to probable likelihood of loss. | |||||||||||||||||||||||||||||||||
The following tables provide balances and delinquency status of performing and nonperforming loans and leases by segment and class, as well as the other real estate owned and total nonperforming asset balances, as of December 31, 2014, and 2013. | |||||||||||||||||||||||||||||||||
TABLE 60: DELINQUENCY STATUS | |||||||||||||||||||||||||||||||||
(In Millions) | CURRENT | 30 – 59 DAYS | 60 – 89 DAYS | 90 DAYS | TOTAL | NONPERFORMING | TOTAL LOANS | ||||||||||||||||||||||||||
PAST DUE | PAST DUE | OR MORE | PERFORMING | AND LEASES | |||||||||||||||||||||||||||||
PAST DUE | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 8,340.50 | $ | 14.5 | $ | 4 | $ | 7.9 | $ | 8,366.90 | $ | 15 | $ | 8,381.90 | |||||||||||||||||||
Commercial Real Estate | 3,274.30 | 9.6 | 9.8 | 2.5 | 3,296.20 | 37.1 | 3,333.30 | ||||||||||||||||||||||||||
Lease Financing, net | 916.3 | – | – | – | 916.3 | – | 916.3 | ||||||||||||||||||||||||||
Non-U.S. | 1,530.60 | – | – | – | 1,530.60 | – | 1,530.60 | ||||||||||||||||||||||||||
Other | 191.5 | – | – | – | 191.5 | – | 191.5 | ||||||||||||||||||||||||||
Total Commercial | 14,253.20 | 24.1 | 13.8 | 10.4 | 14,301.50 | 52.1 | 14,353.60 | ||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 9,556.30 | 49.5 | 9.9 | 4.5 | 9,620.20 | 162.4 | 9,782.60 | ||||||||||||||||||||||||||
Private Client | 7,396.00 | 56 | 5.9 | 7.8 | 7,465.70 | 1.2 | 7,466.90 | ||||||||||||||||||||||||||
Other | 37.1 | – | – | – | 37.1 | – | 37.1 | ||||||||||||||||||||||||||
Total Personal | 16,989.40 | 105.5 | 15.8 | 12.3 | 17,123.00 | 163.6 | 17,286.60 | ||||||||||||||||||||||||||
Total Loans and Leases | $ | 31,242.60 | $ | 129.6 | $ | 29.6 | $ | 22.7 | $ | 31,424.50 | $ | 215.7 | $ | 31,640.20 | |||||||||||||||||||
Other Real Estate Owned | $ | 16.6 | |||||||||||||||||||||||||||||||
Total Nonperforming Assets | $ | 232.3 | |||||||||||||||||||||||||||||||
(In Millions) | CURRENT | 30 – 59 DAYS | 60 – 89 DAYS | 90 DAYS | TOTAL | NONPERFORMING | TOTAL LOANS | ||||||||||||||||||||||||||
PAST DUE | PAST DUE | OR MORE | PERFORMING | AND LEASES | |||||||||||||||||||||||||||||
PAST DUE | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 7,332.30 | $ | 5 | $ | 12.1 | $ | 3.3 | $ | 7,352.70 | $ | 23.1 | $ | 7,375.80 | |||||||||||||||||||
Commercial Real Estate | 2,881.10 | 4.1 | 14.6 | 6.8 | 2,906.60 | 49.2 | 2,955.80 | ||||||||||||||||||||||||||
Lease Financing, net | 975.1 | – | – | – | 975.1 | – | 975.1 | ||||||||||||||||||||||||||
Non-U.S. | 954.7 | – | – | – | 954.7 | – | 954.7 | ||||||||||||||||||||||||||
Other | 358.6 | – | – | – | 358.6 | – | 358.6 | ||||||||||||||||||||||||||
Total Commercial | 12,501.80 | 9.1 | 26.7 | 10.1 | 12,547.70 | 72.3 | 12,620.00 | ||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 9,934.40 | 129.3 | 15.6 | 2.9 | 10,082.20 | 189.1 | 10,271.30 | ||||||||||||||||||||||||||
Private Client | 6,404.20 | 29.1 | 7.5 | 3.4 | 6,444.20 | 1.4 | 6,445.60 | ||||||||||||||||||||||||||
Other | 48.6 | – | – | – | 48.6 | – | 48.6 | ||||||||||||||||||||||||||
Total Personal | 16,387.20 | 158.4 | 23.1 | 6.3 | 16,575.00 | 190.5 | 16,765.50 | ||||||||||||||||||||||||||
Total Loans and Leases | $ | 28,889.00 | $ | 167.5 | $ | 49.8 | $ | 16.4 | $ | 29,122.70 | $ | 262.8 | $ | 29,385.50 | |||||||||||||||||||
Other Real Estate Owned | $ | 11.9 | |||||||||||||||||||||||||||||||
Total Nonperforming Assets | $ | 274.7 | |||||||||||||||||||||||||||||||
The following tables provide information related to impaired loans by segment and class. | |||||||||||||||||||||||||||||||||
TABLE 61: IMPAIRED LOANS | |||||||||||||||||||||||||||||||||
AS OF DECEMBER 31, 2014 | AS OF DECEMBER 31, 2013 | ||||||||||||||||||||||||||||||||
(In Millions) | RECORDED | UNPAID | SPECIFIC | RECORDED | UNPAID | SPECIFIC | |||||||||||||||||||||||||||
INVESTMENT | PRINCIPAL | ALLOWANCE | INVESTMENT | PRINCIPAL | ALLOWANCE | ||||||||||||||||||||||||||||
BALANCE | BALANCE | ||||||||||||||||||||||||||||||||
With no related specific allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 9 | $ | 12 | $ | – | $ | 12.2 | $ | 18.1 | $ | – | |||||||||||||||||||||
Commercial Real Estate | 47 | 52.4 | – | 46.6 | 57.1 | – | |||||||||||||||||||||||||||
Lease Financing, net | 4.2 | 4.2 | – | 4.4 | 4.4 | – | |||||||||||||||||||||||||||
Residential Real Estate | 160.9 | 204.8 | – | 185 | 227.8 | – | |||||||||||||||||||||||||||
Private Client | 0.2 | 0.5 | – | 0.8 | 0.8 | – | |||||||||||||||||||||||||||
With a related specific allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 6.5 | 6.6 | 2.9 | 9.6 | 12.1 | 3.6 | |||||||||||||||||||||||||||
Commercial Real Estate | 12.2 | 18.3 | 2.9 | 26.7 | 31.5 | 4.5 | |||||||||||||||||||||||||||
Residential Real Estate | 1.4 | 1.4 | 0.4 | 8.1 | 8.7 | 2.3 | |||||||||||||||||||||||||||
Private Client | 0.8 | 0.8 | 0.4 | – | – | – | |||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
Commercial | 78.9 | 93.5 | 5.8 | 99.5 | 123.2 | 8.1 | |||||||||||||||||||||||||||
Personal | 163.3 | 207.5 | 0.8 | 193.9 | 237.3 | 2.3 | |||||||||||||||||||||||||||
Total | $ | 242.2 | $ | 301 | $ | 6.6 | $ | 293.4 | $ | 360.5 | $ | 10.4 | |||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2014 | YEAR ENDED DECEMBER 31, 2013 | ||||||||||||||||||||||||||||||||
(In Millions) | AVERAGE | INTEREST | AVERAGE | INTEREST | |||||||||||||||||||||||||||||
RECORDED | INCOME | RECORDED | INCOME | ||||||||||||||||||||||||||||||
INVESTMENT | RECOGNIZED | INVESTMENT | RECOGNIZED | ||||||||||||||||||||||||||||||
With no related specific allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 11.3 | $ | 0.1 | $ | 11.7 | $ | 0.2 | |||||||||||||||||||||||||
Commercial Real Estate | 46.1 | 1 | 42.4 | 0.9 | |||||||||||||||||||||||||||||
Lease Financing, net | 4.3 | 0.2 | 4.5 | 0.2 | |||||||||||||||||||||||||||||
Residential Real Estate | 176.7 | 2.6 | 160.2 | 2.5 | |||||||||||||||||||||||||||||
Private Client | 0.5 | – | 10.2 | – | |||||||||||||||||||||||||||||
With a related specific allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 9.6 | – | 12.5 | – | |||||||||||||||||||||||||||||
Commercial Real Estate | 18.8 | – | 31 | – | |||||||||||||||||||||||||||||
Lease Financing, net | – | – | 0.7 | – | |||||||||||||||||||||||||||||
Residential Real Estate | 3.3 | – | 5.7 | – | |||||||||||||||||||||||||||||
Private Client | 0.6 | – | 4 | – | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
Commercial | 90.1 | 1.3 | 102.8 | 1.3 | |||||||||||||||||||||||||||||
Personal | 181.1 | 2.6 | 180.1 | 2.5 | |||||||||||||||||||||||||||||
Total | $ | 271.2 | $ | 3.9 | $ | 282.9 | $ | 3.8 | |||||||||||||||||||||||||
Note: Average recorded investments in impaired loans are calculated as the average of the month-end impaired loan balances for the period. | |||||||||||||||||||||||||||||||||
Interest income that would have been recorded on nonperforming loans in accordance with their original terms totaled approximately $9.1 million in 2014, $10.6 million in 2013, and $11.6 million in 2012. | |||||||||||||||||||||||||||||||||
There were $2.4 million and $3.4 million of aggregate undrawn loan commitments and standby letters of credit at December 31, 2014, and 2013, respectively, issued to borrowers whose loans were classified as nonperforming or impaired. | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings (TDRs): Included within impaired loans were $82.7 million and $72.7 million of nonperforming TDRs and $68.6 million and $89.8 million of performing TDRs as of December 31, 2014, and 2013, respectively. | |||||||||||||||||||||||||||||||||
The following tables provide, by segment and class, the number of loans and leases modified in TDRs during the years ended December 31, 2014, and 2013, and the recorded investments and unpaid principal balances as of December 31, 2014, and 2013. | |||||||||||||||||||||||||||||||||
TABLE 62: TROUBLED DEBT RESTRUCTURINGS | |||||||||||||||||||||||||||||||||
($ In Millions) | NUMBER OF | RECORDED | UNPAID | ||||||||||||||||||||||||||||||
LOANS AND | INVESTMENT | PRINCIPAL | |||||||||||||||||||||||||||||||
LEASES | BALANCE | ||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 2 | $ | 0.7 | $ | 0.8 | ||||||||||||||||||||||||||||
Commercial Real Estate | 8 | 3.9 | 4.8 | ||||||||||||||||||||||||||||||
Total Commercial | 10 | 4.6 | 5.6 | ||||||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 124 | 15 | 17.9 | ||||||||||||||||||||||||||||||
Private Client | 4 | 0.2 | 0.5 | ||||||||||||||||||||||||||||||
Total Personal | 128 | 15.2 | 18.4 | ||||||||||||||||||||||||||||||
Total Loans and Leases | 138 | $ | 19.8 | $ | 24 | ||||||||||||||||||||||||||||
Note: Period end balances reflect all paydowns and charge-offs during the year. | |||||||||||||||||||||||||||||||||
($ In Millions) | NUMBER OF | RECORDED | UNPAID | ||||||||||||||||||||||||||||||
LOANS AND | INVESTMENT | PRINCIPAL | |||||||||||||||||||||||||||||||
LEASES | BALANCE | ||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 14 | $ | 3.4 | $ | 4.7 | ||||||||||||||||||||||||||||
Commercial Real Estate | 12 | 27.7 | 36.2 | ||||||||||||||||||||||||||||||
Total Commercial | 26 | 31.1 | 40.9 | ||||||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 168 | 49.1 | 60 | ||||||||||||||||||||||||||||||
Private Client | 9 | 12.9 | 12.9 | ||||||||||||||||||||||||||||||
Total Personal | 177 | 62 | 72.9 | ||||||||||||||||||||||||||||||
Total Loans and Leases | 203 | $ | 93.1 | $ | 113.8 | ||||||||||||||||||||||||||||
Note: Period end balances reflect all paydowns and charge-offs during the year. | |||||||||||||||||||||||||||||||||
TDR modifications primarily involve interest rate concessions, extensions of term, deferrals of principal, and other modifications. Other modifications typically reflect other nonstandard terms which Northern Trust would not offer in non-troubled situations. During the year ended December 31, 2014, the majority of TDR modifications of loans within commercial and institutional, commercial real estate, and private client classes were primarily extensions of term and other modifications. During the year ended December 31, 2014 TDR modifications of loans within residential real estate were primarily deferrals of principal, extension of term and other modifications. During the year ended December 31, 2013, TDR modifications of loans within commercial and institutional, commercial real estate, lease financing, and private client classes were primarily deferrals of principal, extensions of term, and other modifications; modifications of residential real estate loans were primarily deferrals of principal, extensions of term, interest rate concessions and other modifications. | |||||||||||||||||||||||||||||||||
There were no loans or leases modified in troubled debt restructurings during the previous twelve-month periods which subsequently became nonperforming during the years ended December 31, 2014, or 2013. | |||||||||||||||||||||||||||||||||
All loans and leases modified in troubled debt restructurings are evaluated for impairment. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses. |
Allowance_for_Credit_Losses
Allowance for Credit Losses | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses | Note 7 – Allowance for Credit Losses | ||||||||||||||||||||||||||||||||||||
The allowance for credit losses, which represents management’s estimate of probable losses related to specific borrower relationships and inherent in the various loan and lease portfolios, undrawn commitments, and standby letters of credit, is determined by management through a disciplined credit review process. Northern Trust’s accounting policies related to the estimation of the allowance for credit losses and the charging off of loans, leases and other extensions of credit deemed uncollectible are consistent across both loan and lease segments. | |||||||||||||||||||||||||||||||||||||
In establishing the inherent portion of the allowance for credit losses, Northern Trust’s Loan Loss Reserve Committee assesses a common set of qualitative factors applicable to both the commercial and personal loan segments. The risk characteristics underlying these qualitative factors, and management’s assessments as to the relative importance of a qualitative factor, can vary between loan segments and between classes within loan segments. Factors evaluated include those related to external matters, such as economic conditions and changes in collateral value, and those related to internal matters, such as changes in asset quality metrics and loan review activities. In addition to the factors noted above, risk characteristics such as portfolio delinquencies, percentage of portfolio on the watch list and on nonperforming status, and average borrower ratings are assessed in the determination of the inherent allowance. | |||||||||||||||||||||||||||||||||||||
Loan-to-value levels are considered for collateral-secured loans and leases in both the personal and commercial segments. Borrower debt service coverage is evaluated in the personal segment, and cash flow coverage is analyzed in the commercial segment. | |||||||||||||||||||||||||||||||||||||
Similar risk characteristics by type of exposure are analyzed when determining the allowance for undrawn commitments and standby letters of credit. These qualitative factors, together with historical loss rates, serve as the basis for the allowance for credit losses. | |||||||||||||||||||||||||||||||||||||
Loans, leases and other extensions of credit deemed uncollectible are charged to the allowance for credit losses. Subsequent recoveries, if any, are credited to the allowance. Determinations as to whether an uncollectible loan is charged off or a specific allowance is established are based on management’s assessment as to the level of certainty regarding the amount of loss. | |||||||||||||||||||||||||||||||||||||
Changes in the allowance for credit losses by segment were as follows: | |||||||||||||||||||||||||||||||||||||
TABLE 63: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In Millions) | COMMERCIAL | PERSONAL | TOTAL | COMMERCIAL | PERSONAL | TOTAL | COMMERCIAL | PERSONAL | TOTAL | ||||||||||||||||||||||||||||
Balance at Beginning of Year | $ | 168 | $ | 139.9 | $ | 307.9 | $ | 194.2 | $ | 133.4 | $ | 327.6 | $ | 211 | $ | 117.9 | $ | 328.9 | |||||||||||||||||||
Charge-Offs | (12.9 | ) | (23.2 | ) | (36.1 | ) | (16.7 | ) | (42.6 | ) | (59.3 | ) | (19.9 | ) | (43.1 | ) | (63.0 | ) | |||||||||||||||||||
Recoveries | 11.1 | 7 | 18.1 | 8.6 | 11 | 19.6 | 20.3 | 16.4 | 36.7 | ||||||||||||||||||||||||||||
Net (Charge-Offs) Recoveries | (1.8 | ) | (16.2 | ) | (18.0 | ) | (8.1 | ) | (31.6 | ) | (39.7 | ) | 0.4 | (26.7 | ) | (26.3 | ) | ||||||||||||||||||||
Provision for Credit Losses | 3.5 | 2.5 | 6 | (18.1 | ) | 38.1 | 20 | (17.2 | ) | 42.2 | 25 | ||||||||||||||||||||||||||
Balance at End of Year | $ | 169.7 | $ | 126.2 | $ | 295.9 | $ | 168 | $ | 139.9 | $ | 307.9 | $ | 194.2 | $ | 133.4 | $ | 327.6 | |||||||||||||||||||
Allowance for Credit Losses Assigned to: | |||||||||||||||||||||||||||||||||||||
Loans and Leases | $ | 143.8 | $ | 123.2 | $ | 267 | $ | 140.9 | $ | 137.2 | $ | 278.1 | $ | 166.1 | $ | 131.8 | $ | 297.9 | |||||||||||||||||||
Undrawn Commitments and Standby Letters of Credit | 25.9 | 3 | 28.9 | 27.1 | 2.7 | 29.8 | 28.1 | 1.6 | 29.7 | ||||||||||||||||||||||||||||
Total Allowance for Credit Losses | $ | 169.7 | $ | 126.2 | $ | 295.9 | $ | 168 | $ | 139.9 | $ | 307.9 | $ | 194.2 | $ | 133.4 | $ | 327.6 | |||||||||||||||||||
The following tables provide information regarding the recorded investments in loans and leases and the allowance for credit losses by segment as of December 31, 2014, and 2013. | |||||||||||||||||||||||||||||||||||||
TABLE 64: RECORDED INVESTMENTS IN LOANS AND LEASES | |||||||||||||||||||||||||||||||||||||
(In Millions) | COMMERCIAL | PERSONAL | TOTAL | ||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Loans and Leases | |||||||||||||||||||||||||||||||||||||
Specifically Evaluated for Impairment | $ | 78.9 | $ | 163.3 | $ | 242.2 | |||||||||||||||||||||||||||||||
Evaluated for Inherent Impairment | 14,274.70 | 17,123.30 | 31,398.00 | ||||||||||||||||||||||||||||||||||
Total Loans and Leases | 14,353.60 | 17,286.60 | 31,640.20 | ||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Credit Exposures | |||||||||||||||||||||||||||||||||||||
Specifically Evaluated for Impairment | 5.8 | 0.8 | 6.6 | ||||||||||||||||||||||||||||||||||
Evaluated for Inherent Impairment | 138 | 122.4 | 260.4 | ||||||||||||||||||||||||||||||||||
Allowance assigned to loans and leases | 143.8 | 123.2 | 267 | ||||||||||||||||||||||||||||||||||
Allowance for Undrawn Exposures | |||||||||||||||||||||||||||||||||||||
Commitments and Standby Letters of Credit | 25.9 | 3 | 28.9 | ||||||||||||||||||||||||||||||||||
Total Allowance for Credit Losses | $ | 169.7 | $ | 126.2 | $ | 295.9 | |||||||||||||||||||||||||||||||
(In Millions) | COMMERCIAL | PERSONAL | TOTAL | ||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Loans and Leases | |||||||||||||||||||||||||||||||||||||
Specifically Evaluated for Impairment | $ | 99.5 | $ | 193.9 | $ | 293.4 | |||||||||||||||||||||||||||||||
Evaluated for Inherent Impairment | 12,520.50 | 16,571.60 | 29,092.10 | ||||||||||||||||||||||||||||||||||
Total Loans and Leases | 12,620.00 | 16,765.50 | 29,385.50 | ||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Credit Exposures | |||||||||||||||||||||||||||||||||||||
Specifically Evaluated for Impairment | 8.1 | 2.3 | 10.4 | ||||||||||||||||||||||||||||||||||
Evaluated for Inherent Impairment | 132.8 | 134.9 | 267.7 | ||||||||||||||||||||||||||||||||||
Allowance assigned to loans and leases | 140.9 | 137.2 | 278.1 | ||||||||||||||||||||||||||||||||||
Allowance for Undrawn Exposures | |||||||||||||||||||||||||||||||||||||
Commitments and Standby Letters of Credit | 27.1 | 2.7 | 29.8 | ||||||||||||||||||||||||||||||||||
Total Allowance for Credit Losses | $ | 168 | $ | 139.9 | $ | 307.9 |
Concentrations_of_Credit_Risk
Concentrations of Credit Risk | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Concentrations of Credit Risk | Note 8 – Concentrations of Credit Risk | ||||||||
Concentrations of credit risk exist if a number of borrowers or other counterparties are engaged in similar activities and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The fact that a credit exposure falls into one of these groups does not necessarily indicate that the credit has a higher than normal degree of credit risk. These groups are: banks and bank holding companies, residential real estate, and commercial real estate. | |||||||||
Banks and Bank Holding Companies. On-balance sheet credit risk to banks and bank holding companies, both U.S. and non-U.S., consists primarily of interest bearing deposits with banks, federal funds sold, and securities purchased under agreements to resell, which totaled $16.0 billion and $19.9 billion at December 31, 2014, and 2013, respectively, and noninterest-bearing demand balances maintained at correspondent banks, which totaled $1.1 billion and $3.0 billion at December 31, 2014, and 2013, respectively. Credit risk associated with U.S. and non-U.S. banks and bank holding companies deemed to be counterparties by Credit Risk Management is managed by the Counterparty Risk Management Committee. Credit limits are established through a review process that includes an internally prepared financial analysis, use of an internal risk rating system and consideration of external ratings from rating agencies. Northern Trust places deposits with banks that have strong internal and external credit ratings and the average life to maturity of deposits with banks is maintained on a short-term basis in order to respond quickly to changing credit conditions. | |||||||||
Residential Real Estate. At December 31, 2014, residential real estate loans totaled $9.8 billion, or 32% of total U.S. loans at December 31, 2014, compared with $10.3 billion, or 36% of total U.S. loans, at December 31, 2013. Residential real estate loans consist of traditional first lien mortgages and equity credit lines, which generally require a loan-to-collateral value ratio of no more than 65% to 80% at inception. Revaluations of supporting collateral are obtained upon refinancing or default or when otherwise considered warranted. Collateral revaluations for mortgages are performed by independent third parties. Of the total $9.8 billion in residential real estate loans, $3.0 billion were in the greater Chicago area, $2.2 billion were in Florida, and $1.6 billion were in California, with the remainder distributed throughout the other geographic regions within the U.S. served by Northern Trust. Legally binding undrawn commitments to extend residential real estate credit, which are primarily equity credit lines, totaled $1.6 billion and $1.7 billion at December 31, 2014, and 2013, respectively. | |||||||||
Commercial Real Estate. The commercial real estate portfolio consists of commercial mortgages and construction, acquisition and development loans extended to experienced investors well known to Northern Trust. Underwriting standards generally reflect conservative loan-to-value ratios and debt service coverage requirements. Recourse to borrowers through guarantees is also commonly required. Commercial mortgage financing is provided for the acquisition or refinancing of income-producing properties. Cash flows from the properties generally are sufficient to amortize the loan. These loans are primarily located in the Illinois, Florida, California, Texas and Arizona markets. Construction, acquisition and development loans provide financing for commercial real estate prior to rental income stabilization. The intent is generally that the borrower will sell the project or refinance the loan through a commercial mortgage with Northern Trust or another financial institution upon completion. | |||||||||
The table below provides additional detail regarding commercial real estate loan types: | |||||||||
TABLE 65: COMMERCIAL REAL ESTATE LOANS | |||||||||
DECEMBER 31, | |||||||||
(In Millions) | 2014 | 2013 | |||||||
Commercial Mortgages | |||||||||
Apartment/ Multi-family | $ | 728.7 | $ | 616.2 | |||||
Office | 735.5 | 686 | |||||||
Retail | 854.1 | 768 | |||||||
Industrial/ Warehouse | 323.7 | 318.6 | |||||||
Other | 125.7 | 110.6 | |||||||
Total Commercial Mortgages | 2,767.70 | 2,499.40 | |||||||
Construction, Acquisition and Development Loans | 256.8 | 254.2 | |||||||
Single Family Investment | 121.3 | 110 | |||||||
Other Commercial Real Estate Related | 187.5 | 92.2 | |||||||
Total Commercial Real Estate Loans | $ | 3,333.30 | $ | 2,955.80 |
Buildings_and_Equipment
Buildings and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Buildings and Equipment | Note 9 – Buildings and Equipment | ||||||||||||
A summary of buildings and equipment is presented below. | |||||||||||||
TABLE 66: BUILDINGS AND EQUIPMENT | DECEMBER 31, 2014 | ||||||||||||
(In Millions) | ORIGINAL | ACCUMULATED | NET BOOK | ||||||||||
COST | DEPRECIATION | VALUE | |||||||||||
Land and Improvements | $ | 26.5 | $ | 0.7 | $ | 25.8 | |||||||
Buildings | 232.8 | 117.5 | 115.3 | ||||||||||
Equipment | 392.2 | 234.7 | 157.5 | ||||||||||
Leasehold Improvements | 327.3 | 212.1 | 115.2 | ||||||||||
Buildings Leased under Capital Leases | 82.5 | 52 | 30.5 | ||||||||||
Total Buildings and Equipment | 1,061.30 | 617 | 444.3 | ||||||||||
The charge for depreciation, which includes depreciation of assets recorded under capital leases and is included within occupancy expense in the consolidated statement of income, amounted to $90.6 million in 2014, $92.3 million in 2013, and $88.3 million in 2012. |
Lease_Commitments
Lease Commitments | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Lease Commitments | Note 10 – Lease Commitments | ||||
At December 31, 2014, Northern Trust was obligated under a number of non-cancelable operating leases for buildings and equipment. Certain leases contain rent escalation clauses based on market indices or increases in real estate taxes and other operating expenses and renewal option clauses calling for increased rentals. There are no restrictions imposed by any lease agreement regarding the payment of dividends, debt financing or Northern Trust entering into further lease agreements. Minimum annual lease commitments as of December 31, 2014, for all non-cancelable operating leases with a term of one year or more are as follows: | |||||
TABLE 67: MINIMUM LEASE PAYMENTS | |||||
(In Millions) | FUTURE MINIMUM | ||||
LEASE PAYMENTS | |||||
2015 | $ | 90.7 | |||
2016 | 86 | ||||
2017 | 80.2 | ||||
2018 | 70.5 | ||||
2019 | 61.8 | ||||
Later Years | 291.4 | ||||
Total Minimum Lease Payments | 680.6 | ||||
Less: Sublease Rentals | (24.0 | ) | |||
Net Minimum Lease Payments | $ | 656.6 | |||
Operating lease rental expense, net of rental income, is recorded in occupancy expense and amounted to $73.2 million in 2014, $76.2 million in 2013, and $77.9 million in 2012. | |||||
One of the buildings and related land utilized for Chicago operations has been leased under an agreement that qualifies as a capital lease. The original long-term financing for the property was provided by Northern Trust. In the event of sale or refinancing, Northern Trust would anticipate receiving full repayment of any outstanding loans plus 42% of any proceeds in excess of the original project costs. The following table reflects the future minimum lease payments required under capital leases, net of any payments received on the long-term financing, and the present value of net capital lease obligations at December 31, 2014. | |||||
TABLE 68: PRESENT VALUE UNDER CAPITAL LEASE OBLIGATIONS | |||||
(In Millions) | FUTURE MINIMUM | ||||
LEASE PAYMENTS, NET | |||||
2015 | $ | 8.3 | |||
2016 | 8 | ||||
2017 | 8.2 | ||||
2018 | 8.4 | ||||
2019 | 8.7 | ||||
Later Years | (1.7 | ) | |||
Total Minimum Lease Payments, net | 39.9 | ||||
Less: Amount Representing Interest | (8.1 | ) | |||
Net Present Value under Capital Lease Obligations | $ | 31.8 |
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Other Intangibles | Note 11 – Goodwill and Other Intangibles | ||||||||||||
Goodwill. Changes by reporting segment in the carrying amount of goodwill for the years ended December 31, 2014, and 2013, including the effect of foreign exchange rates on non-U.S.-dollar-denominated balances, were as follows: | |||||||||||||
TABLE 69: GOODWILL | |||||||||||||
(In Millions) | CORPORATE & | WEALTH | TOTAL | ||||||||||
INSTITUTIONAL | MANAGEMENT | ||||||||||||
SERVICES | |||||||||||||
Balance at December 31, 2012 | $ | 466.3 | $ | 71.5 | $ | 537.8 | |||||||
Foreign Exchange Rates | 2.9 | – | 2.9 | ||||||||||
Balance at December 31, 2013 | $ | 469.2 | $ | 71.5 | $ | 540.7 | |||||||
Foreign Exchange Rates | (7.4 | ) | (0.1 | ) | (7.5 | ) | |||||||
Balance at December 31, 2014 | $ | 461.8 | $ | 71.4 | $ | 533.2 | |||||||
Other Intangible Assets Subject to Amortization. The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of December 31, 2014, and 2013 were as follows. | |||||||||||||
TABLE 70: OTHER INTANGIBLE ASSETS | |||||||||||||
DECEMBER 31, | |||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||
Gross Carrying Amount | $ | 189.5 | $ | 198.2 | |||||||||
Accumulated Amortization | 129.5 | 115.2 | |||||||||||
Net Book Value | $ | 60 | $ | 83 | |||||||||
Other intangible assets consist primarily of the value of acquired client relationships and are included within other assets in the consolidated balance sheet. Amortization expense related to other intangible assets was $19.5 million, $21.1 million, and $20.3 million for the years ended December 31, 2014, 2013, and 2012, respectively. Amortization for the years 2015, 2016, 2017, 2018, and 2019 is estimated to be $11.3 million, $8.8 million, $8.7 million, $8.1 million, and $7.9 million, respectively. |
Senior_Notes_and_LongTerm_Debt
Senior Notes and Long-Term Debt | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Senior Notes and Long-Term Debt | Note 12 – Senior Notes and Long-Term Debt | ||||||||||||
Senior Notes. A summary of senior notes outstanding at December 31, 2014 and 2013 is presented below. | |||||||||||||
TABLE 71: SENIOR NOTES | |||||||||||||
DECEMBER 31, | |||||||||||||
($ In Millions) | RATE | 2014 | 2013 | ||||||||||
Corporation-Senior Notes(1)(4) | |||||||||||||
Fixed Rate Due May 2014 | 4.63 | $ | – | $ | 500 | ||||||||
Fixed Rate Due Nov. 2020(5) | 3.45 | 499.6 | 499.5 | ||||||||||
Fixed Rate Due Aug. 2021(6) | 3.38 | 498.5 | 498.3 | ||||||||||
Fixed Rate Due Aug. 2022(7) | 2.38 | 498.9 | 498.8 | ||||||||||
Total Senior Notes | $ | 1,497.00 | $ | 1,996.60 | |||||||||
Long-Term Debt. A summary of long-term debt outstanding at December 31, 2014 and 2013 is presented below. | |||||||||||||
TABLE 72: LONG-TERM DEBT | |||||||||||||
DECEMBER 31, | |||||||||||||
($ In Millions) | 2014 | 2013 | |||||||||||
Bank-Subordinated Debt(1)(4) | |||||||||||||
5.85% Notes due Nov. 2017(2)(11) | $ | 221.6 | $ | 228.9 | |||||||||
6.50% Notes due Aug. 2018(2)(8)(11) | 335 | 342.4 | |||||||||||
5.375% Sterling Denominated Notes due March 2015(9) | 233.7 | 248.3 | |||||||||||
Total Bank-Subordinated Debt | 790.3 | 819.6 | |||||||||||
Corporation-Subordinated 3.95% Notes due Oct. 2025(1)(4)(10)(11) | 793 | 717.7 | |||||||||||
Federal Home Loan Bank Borrowings | |||||||||||||
One Year or Less (Average Rate at Year End – 4.40% in 2013) | – | 135 | |||||||||||
Total Federal Home Loan Bank Borrowings | – | 135 | |||||||||||
Capital Lease Obligations(3) | 31.8 | 36.9 | |||||||||||
Total Long-Term Debt | $ | 1,615.10 | $ | 1,709.20 | |||||||||
Long-Term Debt Qualifying as Risk-Based Capital | $ | 1,009.10 | $ | 1,158.70 | |||||||||
(1) Not redeemable prior to maturity. | |||||||||||||
(2) Under the terms of its current Offering Circular dated November 6, 2013, the Bank has the ability to offer from time to time its senior bank notes in an aggregate principal amount of up to $4.5 billion at any one time outstanding and up to an additional $1.0 billion of subordinated notes. Each senior note will mature from 30 days to fifteen years, and each subordinated note will mature from five years to fifteen years, following its date of original issuance. Each note will mature on such date as selected by the initial purchaser and agreed to by the Bank. | |||||||||||||
(3) Refer to Note 10 – Lease Commitments. | |||||||||||||
(4) Debt issue costs are recorded as an asset and amortized on a straight-line basis over the life of the Note. | |||||||||||||
(5) Notes issued at a discount of 0.117%. | |||||||||||||
(6) Notes issued at a discount of 0.437% | |||||||||||||
(7) Notes issued at a discount of 0.283% | |||||||||||||
(8) Notes issued at a discount of 0.02% | |||||||||||||
(9) Notes issued at a discount of 0.484% | |||||||||||||
(10) Notes issued at a discount of 0.114% | |||||||||||||
(11) Interest rate swap contracts were entered into to modify the interest expense on these subordinated notes from fixed rates to floating rates. The swaps are recorded as fair value hedges and at December 31, 2014, increases in the carrying values of subordinated notes outstanding of $100.6 million were recorded. As of December 31, 2013, net adjustments in the carrying values of subordinated notes outstanding of $40.1 million were recorded. |
Floating_Rate_Capital_Debt
Floating Rate Capital Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Floating Rate Capital Debt | Note 13 – Floating Rate Capital Debt | ||||||||
In January 1997, the Corporation issued $150 million of Floating Rate Capital Securities, Series A, through a statutory business trust wholly owned by the Corporation (NTC Capital I). In April 1997, the Corporation also issued, through a separate wholly-owned statutory business trust (NTC Capital II), $120 million of Floating Rate Capital Securities, Series B. The sole assets of the trusts are subordinated debentures of Northern Trust Corporation that have the same interest rates and maturity dates as the corresponding distribution rates and redemption dates of the Floating Rate Capital Securities. The Series A securities were issued at a discount to yield 60.5 basis points above the three-month London Interbank Offered Rate (LIBOR) and are due January 15, 2027. The Series B securities were issued at a discount to yield 67.9 basis points above the three-month LIBOR and are due April 15, 2027. | |||||||||
Under the provisions of The Dodd-Frank Wall Street Reform and Consumer Protection Act, the Tier 1 regulatory capital treatment of these securities is required to be phased out over a three-year period that began on January 1, 2013. In 2014, 50% of these securities were eligible for Tier 1 capital treatment. In 2015, Tier 1 capital eligibility declines to 25% before being fully phased out in 2016. As these securities phase out of Tier 1 capital, they are eligible for inclusion in Tier 2 capital, beginning with 50% eligibility in 2014 and 75% eligibility in 2015. Beginning in 2016, 60% of these securities are eligible for Tier 2 capital treatment, declining at an incremental 10% a year until they are fully phased out in 2022. As of December 31, 2014, 50% of both Series A and B securities qualified as Tier 1 capital and 50% qualified as Tier 2 capital. | |||||||||
The Corporation has fully, irrevocably and unconditionally guaranteed all payments due on the Series A and B securities. The holders of the Series A and B securities are entitled to receive preferential cumulative cash distributions quarterly in arrears (based on the liquidation amount of $1,000 per security) at an interest rate equal to the rate on the corresponding subordinated debentures. The interest rate on the Series A and Series B securities is equal to three-month LIBOR plus 0.52% and 0.59%, respectively. Subject to certain exceptions, the Corporation has the right to defer payment of interest on the subordinated debentures at any time or from time to time for a period not exceeding 20 consecutive quarterly periods provided that no extension period may extend beyond the stated maturity date. If interest is deferred on the subordinated debentures, distributions on the Series A and B securities will also be deferred and the Corporation will not be permitted, subject to certain exceptions, to pay or declare any cash distributions with respect to the Corporation’s capital stock or debt securities that rank the same as or junior to the subordinated debentures, until all past due distributions are paid. The subordinated debentures are unsecured and subordinated to substantially all of the Corporation’s existing indebtedness. | |||||||||
The Corporation has the right to redeem the Series A and Series B subordinated debentures, in whole or in part, at a price equal to the principal amount plus accrued and unpaid interest. The following table summarizes the book values of the outstanding subordinated debentures as of December 31, 2014 and 2013: | |||||||||
TABLE 73: SUBORDINATED DEBENTURES | |||||||||
DECEMBER 31, | |||||||||
(In Millions) | 2014 | 2013 | |||||||
NTC Capital I Subordinated Debentures due January 15, 2027 | $ | 154 | $ | 154 | |||||
NTC Capital II Subordinated Debentures due April 15, 2027 | 123.2 | 123.1 | |||||||
Total Subordinated Debentures | $ | 277.2 | $ | 277.1 |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity | Note 14 – Stockholders’ Equity | ||||||||||||
Preferred Stock. The Corporation is authorized to issue 10 million shares of preferred stock without par value. The Board is authorized to fix the particular preferences, rights, qualifications and restrictions for each series of preferred stock issued. On August 5, 2014, the Corporation issued 16 million depositary shares, each representing 1/1000 ownership interest in a share of Series C Non-Cumulative Perpetual Preferred Stock (Series C Preferred Stock), without par value, with a liquidation preference of $25,000 ($25 per depositary share). The aggregate proceeds from the public offering of the depositary shares, net of underwriting discounts, commissions and offering expenses, were $388.5 million. | |||||||||||||
Dividends on the Series C Preferred Stock, which are not mandatory, will accrue and be payable on the liquidation preference amount, on a non-cumulative basis, quarterly in arrears on the first day of January, April, July and October of each year, commencing on January 1, 2015, at a rate per annum equal to 5.85%. On October 21, 2014, the Corporation declared a cash dividend of $593.125 per share of Series C Preferred Stock payable on January 1, 2015 to stockholders of record on December 15, 2014. | |||||||||||||
The Series C Preferred Stock has no maturity date. Shares of the Series C Preferred Stock rank senior to the Corporation’s common stock, and will rank at least equally with any other series of preferred stock it may issue (except for any senior series that may be issued with the requisite consent of the holders of the Series C Preferred Stock) and all other parity stock, with respect to the payment of dividends and distributions upon liquidation, dissolution or winding up. | |||||||||||||
The Series C Preferred Stock is redeemable at the Corporation’s option, in whole or in part, on any dividend payment date on or after October 1, 2019. The Series C Preferred stock is redeemable at the Corporation’s option, in whole, but not in part, prior to October 1, 2019 within 90 days of a regulatory capital treatment event, as described in the Series C Preferred Stock Certificate of Designation. | |||||||||||||
Common Stock. The Corporation’s current common stock repurchase authorization was approved by the Board in April of 2014. The stock repurchase authorization remaining as of December 31, 2014, was 7.1 million shares. The repurchased shares would be used for general purposes of the Corporation, including management of the Corporation’s capital level and the issuance of shares under stock option and other incentive plans of the Corporation. | |||||||||||||
Under the Corporation’s capital plan submitted in January 2014, which was reviewed without objection by the Federal Reserve in March 2014, the Corporation may repurchase up to $107.3 million of common stock after December 31, 2014, through March 2015. In January 2015, the Corporation submitted its most recent capital plan to the Federal Reserve Board. | |||||||||||||
The average price paid per share for common stock repurchased in 2014, 2013, and 2012 was $64.20, $55.90, and $46.32, respectively. | |||||||||||||
An analysis of changes in the number of shares of common stock outstanding follows: | |||||||||||||
TABLE 74: SHARES OF COMMON STOCK | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at January 1 | 237,322,035 | 238,914,988 | 241,008,509 | ||||||||||
Incentive Plan and Awards | 1,040,015 | 863,958 | 449,463 | ||||||||||
Stock Options Exercised | 2,515,769 | 3,088,490 | 973,270 | ||||||||||
Treasury Stock Purchased | (7,487,114 | ) | (5,545,401 | ) | (3,516,254 | ) | |||||||
Balance at December 31 | 233,390,705 | 237,322,035 | 238,914,988 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Note 15 – Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||
The following tables summarize the components of AOCI at December 31, 2014, 2013, and 2012, and changes during the years then ended. | |||||||||||||||||||||||||||||||||||||
TABLE 75: SUMMARY OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||||||||
(In Millions) | BALANCE AT | NET | BALANCE AT | NET | BALANCE AT | NET | BALANCE AT | ||||||||||||||||||||||||||||||
DECEMBER 31, | CHANGE | DECEMBER 31, | CHANGE | DECEMBER 31, | CHANGE | DECEMBER 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Net Unrealized Gains (Losses) on Securities Available for Sale | $ | 27.6 | $ | 21.6 | $ | 6 | $ | (95.0 | ) | $ | 101 | $ | 61.2 | $ | 39.8 | ||||||||||||||||||||||
Net Unrealized (Losses) Gains on Cash Flow Hedges | (4.7 | ) | (7.6 | ) | 2.9 | 4.3 | (1.4 | ) | 5.6 | (7.0 | ) | ||||||||||||||||||||||||||
Net Foreign Currency Adjustments | (1.7 | ) | (8.8 | ) | 7.1 | (3.4 | ) | 10.5 | 20 | (9.5 | ) | ||||||||||||||||||||||||||
Net Pension and Other Postretirement Benefit Adjustments | (340.9 | ) | (80.6 | ) | (260.3 | ) | 132.8 | (393.1 | ) | (24.2 | ) | (368.9 | ) | ||||||||||||||||||||||||
Total | $ | (319.7 | ) | $ | (75.4 | ) | $ | (244.3 | ) | $ | 38.7 | $ | (283.0 | ) | $ | 62.6 | $ | (345.6 | ) | ||||||||||||||||||
TABLE 76: DETAILS OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In Millions) | BEFORE | TAX | AFTER | BEFORE | TAX | AFTER | BEFORE | TAX | AFTER | ||||||||||||||||||||||||||||
TAX | EFFECT | TAX | TAX | EFFECT | TAX | TAX | EFFECT | TAX | |||||||||||||||||||||||||||||
Unrealized Gains (Losses) on Securities Available for Sale | |||||||||||||||||||||||||||||||||||||
Noncredit-Related Unrealized Losses on Securities OTTI | $ | 4.5 | $ | (1.7 | ) | $ | 2.8 | $ | 3 | $ | (1.1 | ) | $ | 1.9 | $ | 15.7 | $ | (5.9 | ) | $ | 9.8 | ||||||||||||||||
Other Unrealized Gains (Losses) on Securities Available for Sale | 30.1 | (11.4 | ) | 18.7 | (156.8 | ) | 59 | (97.8 | ) | 96.2 | (36.1 | ) | 60.1 | ||||||||||||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income | 0.1 | – | 0.1 | 1.6 | (0.7 | ) | 0.9 | (13.9 | ) | 5.2 | (8.7 | ) | |||||||||||||||||||||||||
Net Change | $ | 34.7 | $ | (13.1 | ) | $ | 21.6 | $ | (152.2 | ) | $ | 57.2 | $ | (95.0 | ) | $ | 98 | $ | (36.8 | ) | $ | 61.2 | |||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | |||||||||||||||||||||||||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | $ | (8.7 | ) | $ | 3.6 | $ | (5.1 | ) | $ | 2.1 | $ | (0.7 | ) | $ | 1.4 | $ | 3.2 | $ | (0.6 | ) | $ | 2.6 | |||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income | (4.0 | ) | 1.5 | (2.5 | ) | 4.7 | (1.8 | ) | 2.9 | 4.8 | (1.8 | ) | 3 | ||||||||||||||||||||||||
Net Change | $ | (12.7 | ) | $ | 5.1 | $ | (7.6 | ) | $ | 6.8 | $ | (2.5 | ) | $ | 4.3 | $ | 8 | $ | (2.4 | ) | $ | 5.6 | |||||||||||||||
Foreign Currency Adjustments | |||||||||||||||||||||||||||||||||||||
Foreign Currency Translation Adjustments | $ | (107.8 | ) | $ | 10.8 | $ | (97.0 | ) | $ | 91.9 | $ | (29.7 | ) | $ | 62.2 | $ | 37.9 | $ | 3.1 | $ | 41 | ||||||||||||||||
Long-Term Intra-Entity Foreign Currency Transaction Losses | (1.0 | ) | 0.4 | (0.6 | ) | – | – | – | – | – | – | ||||||||||||||||||||||||||
Net Investment Hedge Gains (Losses) | 142.6 | (53.8 | ) | 88.8 | (107.3 | ) | 41.7 | (65.6 | ) | (33.7 | ) | 12.7 | (21.0 | ) | |||||||||||||||||||||||
Net Change | $ | 33.8 | $ | (42.6 | ) | $ | (8.8 | ) | $ | (15.4 | ) | $ | 12 | $ | (3.4 | ) | $ | 4.2 | $ | 15.8 | $ | 20 | |||||||||||||||
Pension and Other Postretirement Benefit Adjustments | |||||||||||||||||||||||||||||||||||||
Net Actuarial Gains (Losses) | $ | (137.8 | ) | $ | 41.5 | $ | (96.3 | ) | $ | 157.7 | $ | (54.9 | ) | $ | 102.8 | $ | (62.8 | ) | $ | 15.8 | $ | (47.0 | ) | ||||||||||||||
Reclassification Adjustment for Losses Included in Net Income | 25.2 | (9.5 | ) | 15.7 | 46.1 | (16.1 | ) | 30 | 33.9 | (11.1 | ) | 22.8 | |||||||||||||||||||||||||
Net Change | $ | (112.6 | ) | $ | 32 | $ | (80.6 | ) | $ | 203.8 | $ | (71.0 | ) | $ | 132.8 | $ | (28.9 | ) | $ | 4.7 | $ | (24.2 | ) | ||||||||||||||
The following table provides the location and before-tax amounts of reclassifications out of AOCI during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||||||||||||||
TABLE 77: RECLASSIFICATION ADJUSTMENT OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||||||||
(In Millions) | LOCATION OF | AMOUNT OF RECLASSIFICATION | |||||||||||||||||||||||||||||||||||
RECLASSIFICATION ADJUSTMENTS | ADJUSTMENTS RECOGNIZED | ||||||||||||||||||||||||||||||||||||
RECOGNIZED IN INCOME | IN INCOME | ||||||||||||||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||||||||||||||
Realized (Gains) Losses on Securities Available for Sale | Investment Security Gains (Losses), net | $ | 0.1 | $ | 1.6 | $ | (13.9 | ) | |||||||||||||||||||||||||||||
Realized (Gains) Losses on Cash Flow Hedges | |||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Other Operating Income/ Expense | (4.0 | ) | 4.7 | 4.8 | ||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Adjustments | |||||||||||||||||||||||||||||||||||||
Amortization of Net Actuarial (Gains) Losses | Employee Benefits | 25.1 | 49 | 38.8 | |||||||||||||||||||||||||||||||||
Amortization of Prior Service Cost | Employee Benefits | 0.1 | (2.9 | ) | (4.9 | ) | |||||||||||||||||||||||||||||||
Gross Reclassification Adjustment | $ | 25.2 | $ | 46.1 | $ | 33.9 | |||||||||||||||||||||||||||||||
Net_Income_per_Common_Share
Net Income per Common Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Net Income per Common Share | Note 16 – Net Income per Common Share | ||||||||||||
The computations of net income per common share are presented below. | |||||||||||||
TABLE 78: NET INCOME PER COMMON SHARE | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
($ In Millions Except Per Common Share Information) | 2014 | 2013 | 2012 | ||||||||||
BASIC NET INCOME PER COMMON SHARE | |||||||||||||
Average Number of Common Shares Outstanding | 235,829,790 | 239,265,313 | 240,417,805 | ||||||||||
Net Income | $ | 811.8 | $ | 731.3 | $ | 687.3 | |||||||
Less: Dividends on Preferred Stock | 9.5 | – | – | ||||||||||
Net Income Applicable to Common Stock | $ | 802.3 | $ | 731.3 | $ | 687.3 | |||||||
Less: Earnings Allocated to Participating Securities | 13.3 | 11.9 | 10 | ||||||||||
Earnings Allocated to Common Shares Outstanding | 789 | 719.4 | 677.3 | ||||||||||
Basic Net Income Per Common Share | 3.34 | 3.01 | 2.82 | ||||||||||
DILUTED NET INCOME PER COMMON SHARE | |||||||||||||
Average Number of Common Shares Outstanding | 235,829,790 | 239,265,313 | 240,417,805 | ||||||||||
Plus Dilutive Effect of Share-based Compensation | 1,890,465 | 1,289,527 | 463,439 | ||||||||||
Average Common and Potential Common Shares | 237,720,255 | 240,554,840 | 240,881,244 | ||||||||||
Earnings Allocated to Common and Potential Common Shares | $ | 789 | $ | 719.5 | $ | 677.3 | |||||||
Diluted Net Income Per Common Share | 3.32 | 2.99 | 2.81 | ||||||||||
Note: Common stock equivalents totaling 1,517,588, 3,498,894, and 12,158,601 for the years ended December 31, 2014, 2013, and 2012, respectively, were not included in the computation of diluted net income per common share because their inclusion would have been antidilutive. | |||||||||||||
Net_Interest_Income
Net Interest Income | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Net Interest Income | Note 17 – Net Interest Income | ||||||||||||
The components of net interest income were as follows: | |||||||||||||
TABLE 79: NET INTEREST INCOME | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Interest Income | |||||||||||||
Loans and Leases | $ | 735.9 | $ | 743.1 | $ | 828.6 | |||||||
Securities – Taxable | 274.9 | 237.2 | 250.6 | ||||||||||
– Non-Taxable | 7.2 | 11.6 | 17.7 | ||||||||||
Interest-Bearing Due from and Deposits with Banks (Note) | 127.6 | 142.1 | 176.4 | ||||||||||
Federal Reserve Deposits and Other | 41.3 | 21.5 | 14.4 | ||||||||||
Total Interest Income | $ | 1,186.90 | $ | 1,155.50 | $ | 1,287.70 | |||||||
Interest Expense | |||||||||||||
Deposits | $ | 81.7 | $ | 103.3 | $ | 156.7 | |||||||
Federal Funds Purchased | 1.3 | 1.5 | 1.2 | ||||||||||
Securities Sold under Agreements to Repurchase | 0.4 | 0.4 | 0.4 | ||||||||||
Other Borrowings | 3.4 | 3.3 | 4 | ||||||||||
Senior Notes | 54.7 | 74.4 | 72 | ||||||||||
Long-Term Debt | 37.7 | 37.1 | 60.3 | ||||||||||
Floating Rate Capital Debt | 2.2 | 2.4 | 2.8 | ||||||||||
Total Interest Expense | $ | 181.4 | $ | 222.4 | $ | 297.4 | |||||||
Net Interest Income | $ | 1,005.50 | $ | 933.1 | $ | 990.3 | |||||||
(Note): 2014 interest income was earned on cash and due from banks of $1.7 billion and interest-bearing deposits with banks of $14.9 billion as of December 31, 2014. | |||||||||||||
Other_Operating_Income_and_Exp
Other Operating Income and Expense | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Others Operating Income | |||||||||||||
Other Operating Income and Expense | Note 18 – Other Operating Income | ||||||||||||
The components of other operating income were as follows: | |||||||||||||
TABLE 80: OTHER OPERATING INCOME | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Loan Service Fees | $ | 62.7 | $ | 61.9 | $ | 64.5 | |||||||
Banking Service Fees | 49.6 | 50.9 | 55 | ||||||||||
Other Income | 41.2 | 53.7 | 35.4 | ||||||||||
Total Other Operating Income | $ | 153.5 | $ | 166.5 | $ | 154.9 | |||||||
Other Operating Expense | |||||||||||||
Other Operating Income and Expense | Note 19 – Other Operating Expense | ||||||||||||
The components of other operating expense were as follows: | |||||||||||||
TABLE 81: OTHER OPERATING EXPENSE | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Business Promotion | $ | 88 | $ | 91.6 | $ | 87.8 | |||||||
FDIC Insurance Premiums | 22 | 23.5 | 25.4 | ||||||||||
Staff Related | 39.1 | 39.1 | 41.9 | ||||||||||
Other Intangibles Amortization | 19.5 | 21.1 | 20.3 | ||||||||||
Legal Settlement Charge | – | 19.2 | – | ||||||||||
Other Expenses | 103.5 | 119.7 | 107.5 | ||||||||||
Total Other Operating Expense | $ | 272.1 | $ | 314.2 | $ | 282.9 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes | Note 20 – Income Taxes | ||||||||||||
The following table reconciles the total provision for income taxes recorded in the consolidated statement of income with the amounts computed at the statutory federal tax rate of 35%. | |||||||||||||
TABLE 82: INCOME TAXES | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Tax at Statutory Rate | $ | 416.6 | $ | 376.4 | $ | 347.3 | |||||||
Tax Exempt Income | (4.9 | ) | (6.2 | ) | (8.0 | ) | |||||||
Leveraged Lease Adjustments | (3.4 | ) | (2.3 | ) | (12.0 | ) | |||||||
Foreign Tax Rate Differential | (44.1 | ) | (27.6 | ) | (27.1 | ) | |||||||
State Taxes, net | 29.6 | 26.3 | 20.4 | ||||||||||
Other | (15.4 | ) | (22.4 | ) | (15.6 | ) | |||||||
Provision for Income Taxes | $ | 378.4 | $ | 344.2 | $ | 305 | |||||||
The Corporation files income tax returns in the U.S. federal, various state, and foreign jurisdictions. The Corporation is no longer subject to income tax examinations by U.S. federal tax authorities for years before 2009, or non-U.S. tax authorities for years before 2006. The Corporation is no longer subject to income tax examinations by state or local tax authorities for years before 2008. | |||||||||||||
Included in other liabilities within the consolidated balance sheet at December 31, 2014, and 2013 were $11.9 million and $15.6 million of unrecognized tax benefits, respectively. If recognized, 2014 and 2013 net income would have increased by $8.8 million and $12.6 million, respectively, resulting in a decrease of those years’ effective income tax rates. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
TABLE 83: UNRECOGNIZED TAX BENEFITS | |||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||
Balance at January 1 | $ | 15.6 | $ | 19.4 | |||||||||
Additions for Tax Positions Taken in Prior Years | 3 | 2.4 | |||||||||||
Reductions for Tax Positions Taken in Prior Years | (5.5 | ) | (4.4 | ) | |||||||||
Reductions Resulting from Expiration of Statutes | (1.2 | ) | (1.8 | ) | |||||||||
Balance at December 31 | $ | 11.9 | $ | 15.6 | |||||||||
Unrecognized tax benefits had net decreases of $3.7 million, resulting in a remaining balance of $11.9 million at December 31, 2014, compared to net decreases of $3.8 million resulting in a remaining balance of $15.6 million at December 31, 2013. It is possible that changes in the amount of unrecognized tax benefits could occur in the next 12 months due to changes in judgment related to recognition or measurement, settlements with taxing authorities, or expiration of statute of limitations. Management does not believe that future changes, if any, would have a material effect on the consolidated financial position or liquidity of Northern Trust, although they could have a material effect on operating results for a particular period. | |||||||||||||
The provision for income tax in 2012 included a $12.4 million tax benefit in connection with the resolution of certain leveraged lease related matters. | |||||||||||||
A provision for interest and penalties of $0.2 million, net of tax, was included in the provision for income taxes for the year ended December 31, 2014. This compares to a benefit for recoveries of interest and penalties of $1.7 million, net of tax, for the year ended December 31, 2013. As of December 31, 2014, and 2013, the liability for the potential payment of interest and penalties totaled $10.2 million and $11.0 million, net of tax, respectively. | |||||||||||||
Pre-tax earnings of non-U.S. subsidiaries are subject to U.S. taxation when effectively repatriated. Northern Trust provides income taxes on the undistributed earnings of non-U.S. subsidiaries, except to the extent that those earnings are indefinitely reinvested outside the U.S. Northern Trust elected to indefinitely reinvest $177.4 million, $141.0 million, and $137.4 million of 2014, 2013, and 2012 earnings, respectively, of certain non-U.S. subsidiaries and, therefore, no U.S. deferred income taxes were recorded on those earnings. As of December 31, 2014, the cumulative amount of undistributed pre-tax earnings in these subsidiaries was approximately $1.1 billion. Based on the current U.S. federal income tax rate, an additional deferred tax liability of approximately $255.0 million would have been required as of December 31, 2014, if Northern Trust had not elected to indefinitely reinvest those earnings. | |||||||||||||
The components of the consolidated provision for income taxes for each of the three years ended December 31 are as follows: | |||||||||||||
TABLE 84: PROVISION FOR INCOME TAXES | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Current Tax Provision: | |||||||||||||
Federal | $ | 291.5 | $ | 185.6 | $ | 140.5 | |||||||
State | 47.2 | 24.6 | 21.4 | ||||||||||
Non-U.S. | 76.1 | 67.4 | 63.4 | ||||||||||
Total | 414.8 | 277.6 | $ | 225.3 | |||||||||
Deferred Tax Provision: | |||||||||||||
Federal | (31.1 | ) | 53.9 | $ | 66 | ||||||||
State | (1.6 | ) | 14.1 | 10.6 | |||||||||
Non-U.S. | (3.7 | ) | (1.4 | ) | 3.1 | ||||||||
Total | (36.4 | ) | 66.6 | 79.7 | |||||||||
Provision for Income Taxes | $ | 378.4 | $ | 344.2 | $ | 305 | |||||||
In addition to the amounts shown above, tax charges (benefits) have been recorded directly to stockholders’ equity for the following items: | |||||||||||||
TABLE 85: TAX CHARGES (BENEFITS) RECORDED DIRECTLY TO STOCKHOLDERS’ EQUITY | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Current Tax Benefit for Employee Stock Options and Other Stock-Based Plans | $ | 8.8 | $ | 3 | $ | 2.3 | |||||||
Tax Effect of Other Comprehensive Income | 18.6 | 4.3 | 18.7 | ||||||||||
Deferred taxes result from temporary differences between the amounts reported in the consolidated financial statements and the tax bases of assets and liabilities. Deferred tax liabilities and assets have been computed as follows: | |||||||||||||
TABLE 86: DEFERRED TAX LIABILITIES | DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Deferred Tax Liabilities: | |||||||||||||
Lease Financing | $ | 388.6 | $ | 392 | $ | 409.1 | |||||||
Software Development | 316.1 | 299 | 277.8 | ||||||||||
Accumulated Depreciation | 24.1 | 22 | 19.7 | ||||||||||
Compensation and Benefits | 63.5 | 112.2 | 29.7 | ||||||||||
State Taxes, net | 62.3 | 63.3 | 54.7 | ||||||||||
Other Liabilities | 157.5 | 104 | 170.9 | ||||||||||
Gross Deferred Tax Liabilities | 1,012.10 | 992.5 | 961.9 | ||||||||||
Deferred Tax Assets: | |||||||||||||
Allowance for Credit Losses | 103.5 | 107.8 | 114.7 | ||||||||||
Other Assets | 126.7 | 85 | 118.4 | ||||||||||
Gross Deferred Tax Assets | 230.2 | 192.8 | 233.1 | ||||||||||
Valuation Reserve | (3.9 | ) | (3.9 | ) | (3.9 | ) | |||||||
Deferred Tax Assets, net of Valuation Reserve | 226.3 | 188.9 | 229.2 | ||||||||||
Net Deferred Tax Liabilities | $ | 785.8 | $ | 803.6 | $ | 732.7 | |||||||
Northern Trust had various state net operating loss carryforwards as of December 31, 2014, 2013, and 2012. The income tax benefits associated with these loss carryforwards were approximately $3.9 million. A valuation allowance of $3.9 million was recorded at December 31, 2014, 2013, and 2012, as management believes the net operating losses will not be fully realized. No valuation allowance related to the remaining deferred tax assets was recorded at December 31, 2014, 2013, or 2012, as management believes it is more likely than not that the deferred tax assets will be fully realized. |
Employee_Benefits
Employee Benefits | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Employee Benefits | Note 21 – Employee Benefits | ||||||||||||||||||||||||||||||||||||
The Corporation and certain of its subsidiaries provide various benefit programs, including defined benefit pension, postretirement health care, and defined contribution plans. A description of each major plan and related disclosures are provided below. | |||||||||||||||||||||||||||||||||||||
Pension. A noncontributory qualified defined benefit pension plan covers substantially all U.S. employees of Northern Trust. Employees of various European subsidiaries retain benefits in local defined benefit plans, although those plans are closed to new participants and to future benefit accruals. | |||||||||||||||||||||||||||||||||||||
Northern Trust also maintains a noncontributory supplemental pension plan for participants whose retirement benefit payments under the U.S. plan are expected to exceed the limits imposed by federal tax law. Northern Trust has a nonqualified trust, referred to as a “Rabbi” Trust, used to hold assets designated for the funding of benefits in excess of those permitted in certain of its qualified retirement plans. This arrangement offers participants a degree of assurance for payment of benefits in excess of those permitted in the related qualified plans. As the “Rabbi” Trust assets remain subject to the claims of creditors and are not the property of the employees, they are accounted for as corporate assets and are included in other assets in the consolidated balance sheet. Total assets in the “Rabbi” Trust related to the nonqualified pension plan at December 31, 2014, and 2013 amounted to $93.2 million and $85.1 million, respectively. Contributions of $13.9 million and $16.4 million were made to the “Rabbi” Trust in 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||
The following tables set forth the status, amounts included in AOCI, and net periodic pension expense of the U.S. plan, non-U.S. plans, and supplemental plan for 2014, 2013, and 2012. Prior service costs are being amortized on a straight-line basis over 11 years for the U.S. plan and 9 years for the supplemental plan. | |||||||||||||||||||||||||||||||||||||
TABLE 87: EMPLOYEE BENEFIT PLAN STATUS | |||||||||||||||||||||||||||||||||||||
U.S. PLAN | NON-U.S. PLANS | SUPPLEMENTAL PLAN | |||||||||||||||||||||||||||||||||||
($ In Millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Accumulated Benefit Obligation | $ | 974.8 | $ | 827.9 | $ | 184.6 | $ | 164.7 | $ | 109.2 | $ | 89.8 | |||||||||||||||||||||||||
Projected Benefit Obligation | 1,091.50 | 919.7 | 184.6 | 164.7 | 123 | 101.5 | |||||||||||||||||||||||||||||||
Plan Assets at Fair Value | 1,440.80 | 1,342.10 | 157.6 | 148.5 | – | – | |||||||||||||||||||||||||||||||
Funded Status at December 31 | $ | 349.3 | $ | 422.4 | $ | (27.0 | ) | $ | (16.2 | ) | $ | (123.0 | ) | $ | (101.5 | ) | |||||||||||||||||||||
Weighted-Average Assumptions: | |||||||||||||||||||||||||||||||||||||
Discount Rates | 4.25 | % | 5 | % | 3.2 | % | 4.31 | % | 4.25 | % | 5 | % | |||||||||||||||||||||||||
Rate of Increase in Compensation Level | 4.25 | 4.25 | N/A | N/A | 4.25 | 4.25 | |||||||||||||||||||||||||||||||
Expected Long-Term Rate of Return | 7.25 | 7.75 | 4 | 4.84 | N/A | N/A | |||||||||||||||||||||||||||||||
on Assets | |||||||||||||||||||||||||||||||||||||
TABLE 88: AMOUNTS INCLUDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||||||||
U.S. PLAN | NON-U.S. PLANS | SUPPLEMENTAL PLAN | |||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Net Actuarial Loss | $ | 382.9 | $ | 310.7 | $ | 60.5 | $ | 40.9 | $ | 81.5 | $ | 64.2 | |||||||||||||||||||||||||
Prior Service Cost | (3.1 | ) | (3.5 | ) | – | – | 1.1 | 1.6 | |||||||||||||||||||||||||||||
Gross Amount in Accumulated Other Comprehensive Income | 379.8 | 307.2 | 60.5 | 40.9 | 82.6 | 65.8 | |||||||||||||||||||||||||||||||
Income Tax Effect | 143.3 | 119.5 | 6.3 | 4.8 | 30.9 | 25.6 | |||||||||||||||||||||||||||||||
Net Amount in Accumulated Other Comprehensive Income | $ | 236.5 | $ | 187.7 | $ | 54.2 | $ | 36.1 | $ | 51.7 | $ | 40.2 | |||||||||||||||||||||||||
TABLE 89: NET PERIODIC PENSION EXPENSE | |||||||||||||||||||||||||||||||||||||
U.S. PLAN | NON-U.S. PLANS | SUPPLEMENTAL PLAN | |||||||||||||||||||||||||||||||||||
($ In Millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Service Cost | $ | 32.7 | $ | 30.3 | $ | 35.3 | $ | – | $ | – | $ | – | $ | 3.1 | $ | 1.6 | $ | 3 | |||||||||||||||||||
Interest Cost | 44.4 | 42.1 | 41.4 | 6.9 | 6.6 | 6.2 | 4.8 | 4.4 | 4.5 | ||||||||||||||||||||||||||||
Expected Return on Plan Assets | (97.7 | ) | (93.3 | ) | (87.0 | ) | (7.0 | ) | (6.2 | ) | (6.8 | ) | N/A | N/A | N/A | ||||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||||||||
Net Loss (Gain) | 21.5 | 42.5 | 34.3 | (1.6 | ) | 1 | 0.7 | 5.8 | 6.7 | 6.1 | |||||||||||||||||||||||||||
Prior Service Cost | 0.4 | (0.4 | ) | (0.4 | ) | – | – | – | 0.5 | 0.5 | 0.6 | ||||||||||||||||||||||||||
Net Periodic Pension Expense (Benefit) | $ | 0.5 | $ | 21.2 | $ | 23.6 | $ | (1.7 | ) | $ | 1.4 | $ | 0.1 | $ | 14.2 | $ | 13.2 | $ | 14.2 | ||||||||||||||||||
Weighted-Average Assumptions: | |||||||||||||||||||||||||||||||||||||
Discount Rates | 5 | % | 4.25 | % | 4.75 | % | 4.31 | % | 4.42 | % | 5.02 | % | 5 | % | 4.25 | % | 4.75 | % | |||||||||||||||||||
Rate of Increase in Compensation Level | 4.25 | 4.02 | 4.02 | N/A | N/A | N/A | 4.25 | 4.02 | 4.02 | ||||||||||||||||||||||||||||
Expected Long-Term Rate of Return | 7.75 | 7.75 | 8 | 4.84 | 4.76 | 5.28 | N/A | N/A | N/A | ||||||||||||||||||||||||||||
on Assets | |||||||||||||||||||||||||||||||||||||
Pension expense for 2015 is expected to include approximately $38.6 million and $(0.2) million related to the amortization of net loss and prior service cost balances, respectively, from AOCI. | |||||||||||||||||||||||||||||||||||||
TABLE 90: CHANGE IN PROJECTED BENEFIT OBLIGATION | |||||||||||||||||||||||||||||||||||||
U.S. PLAN | NON-U.S. PLANS | SUPPLEMENTAL PLAN | |||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Beginning Balance | $ | 919.7 | $ | 1,030.40 | $ | 164.7 | $ | 158.1 | $ | 101.5 | $ | 106.4 | |||||||||||||||||||||||||
Service Cost | 32.7 | 30.3 | – | – | 3.1 | 1.6 | |||||||||||||||||||||||||||||||
Interest Cost | 44.4 | 42.1 | 6.9 | 6.6 | 4.8 | 4.4 | |||||||||||||||||||||||||||||||
Actuarial (Gain) Loss | 153.1 | (125.4 | ) | 33.2 | 0.4 | 23.1 | (0.5 | ) | |||||||||||||||||||||||||||||
Benefits Paid | (58.4 | ) | (57.7 | ) | (6.6 | ) | (5.0 | ) | (9.5 | ) | (10.4 | ) | |||||||||||||||||||||||||
Foreign Exchange Rate Changes | – | – | (13.6 | ) | 4.6 | – | – | ||||||||||||||||||||||||||||||
Ending Balance | $ | 1,091.50 | $ | 919.7 | $ | 184.6 | $ | 164.7 | $ | 123 | $ | 101.5 | |||||||||||||||||||||||||
Effective December 31, 2014, Northern Trust adopted the RP-2014 mortality table with improvement scale MP-2014 released by the Society of Actuaries in October 2014. The updated mortality table and improvement scale reflect greater projected improvements in life expectancy and resulted in increases of $25.7 million and $0.7 million, respectively, in the projected benefit obligations for the U.S. qualified and supplemental pension plans as of December 31, 2014. | |||||||||||||||||||||||||||||||||||||
TABLE 91: ESTIMATED FUTURE BENEFIT PAYMENTS | |||||||||||||||||||||||||||||||||||||
(In Millions) | U.S. | NON-U.S. | SUPPLEMENTAL | ||||||||||||||||||||||||||||||||||
PLAN | PLANS | PLAN | |||||||||||||||||||||||||||||||||||
2015 | $ | 69.4 | $ | 2.5 | $ | 9.5 | |||||||||||||||||||||||||||||||
2016 | 68.4 | 3.1 | 10.6 | ||||||||||||||||||||||||||||||||||
2017 | 70.2 | 2.6 | 12.7 | ||||||||||||||||||||||||||||||||||
2018 | 70.7 | 3 | 12.4 | ||||||||||||||||||||||||||||||||||
2019 | 71.2 | 3.3 | 12.3 | ||||||||||||||||||||||||||||||||||
2020-2024 | 345.2 | 22.4 | 60.2 | ||||||||||||||||||||||||||||||||||
TABLE 92: CHANGE IN PLAN ASSETS | |||||||||||||||||||||||||||||||||||||
U.S. PLAN | NON-U.S. PLANS | ||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Fair Value of Assets at Beginning of Period | $ | 1,342.10 | $ | 1,277.70 | $ | 148.5 | $ | 133.9 | |||||||||||||||||||||||||||||
Actual Return on Assets | 157.1 | 122.1 | 22.2 | 11.5 | |||||||||||||||||||||||||||||||||
Employer Contributions | – | – | 4.8 | 4.3 | |||||||||||||||||||||||||||||||||
Benefits Paid | (58.4 | ) | (57.7 | ) | (6.6 | ) | (5.0 | ) | |||||||||||||||||||||||||||||
Foreign Exchange Rate Changes | – | – | (11.3 | ) | 3.8 | ||||||||||||||||||||||||||||||||
Fair Value of Assets at End of Period | $ | 1,440.80 | $ | 1,342.10 | $ | 157.6 | $ | 148.5 | |||||||||||||||||||||||||||||
The minimum required and maximum deductible contributions for the U.S. qualified plan in 2015 are estimated to be zero and $150.0 million, respectively. | |||||||||||||||||||||||||||||||||||||
A total return investment strategy approach is employed for Northern Trust’s U.S. pension plan whereby a mix of U.S. and non-U.S. equities, fixed income and alternative asset investments are used to maximize the long-term return of plan assets for a prudent level of risk. This is accomplished by diversifying the portfolio across various asset classes, with the goal of reducing volatility of return, and among various issuers of securities to reduce principal risk. Northern Trust utilizes an asset/liability methodology to determine the investment policies that will best meet its short and long-term objectives. The process is performed by modeling current and alternative strategies for asset allocation, funding policy and actuarial methods and assumptions. The financial modeling uses projections of expected capital market returns and expected volatility of those returns to determine alternative asset mixes having the greatest probability of meeting the plan’s investment objectives. Risk tolerance is established through careful consideration of plan liabilities, plan funded status, and corporate financial condition. The intent of this strategy is to minimize plan expenses by outperforming growth in plan liabilities over the long run. | |||||||||||||||||||||||||||||||||||||
The target allocation of plan assets since May 2014, by major asset category, is 20% U.S. equities, 15% non-U.S. equities, 45% long duration fixed income securities, and 20% alternative investments, split among private equity funds (5%), hedge funds (5%), real estate (5%) and global listed infrastructure (5%). Equity investments include common stocks that are listed on an exchange and investments in comingled funds that invest primarily in publicly traded equities. Equity investments are diversified across U.S. and non-U.S. stocks and divided by investment style and market capitalization. Fixed income securities held include U.S. treasury securities and investments in commingled funds that invest in a diversified blend of longer duration fixed income securities. Alternative investments, including private equity, hedge funds, real estate, and global infrastructure, are used judiciously to enhance long-term returns while improving portfolio diversification. Private equity assets consist primarily of investments in limited partnerships that invest in individual companies in the form of non-public equity or non-public debt positions. Direct or co-investment in non-public stock by the plan is prohibited. The plan’s private equity investments are limited to 20% of the total limited partnership and the maximum allowable loss cannot exceed the commitment amount. The plan holds two investments in a hedge fund of funds, which invests, either directly or indirectly, in a diversified portfolio of funds or other pooled investment vehicles. | |||||||||||||||||||||||||||||||||||||
Investment in real estate is designed to provide stable income returns and added diversification based upon the historical low correlation between real estate and equity or fixed income investments. The plan’s real estate assets consist of one collective index fund that invests in a diversified portfolio of global real estate investments, primarily equity securities. | |||||||||||||||||||||||||||||||||||||
Though not a primary strategy for meeting the plan’s objectives, derivatives may be used from time to time, depending on the nature of the asset class to which they relate, to gain market exposure in an efficient and timely manner, to hedge foreign currency exposure or interest rate risk, or to alter the duration of a portfolio. There were no derivatives held by the plan at December 31, 2014 or 2013. | |||||||||||||||||||||||||||||||||||||
Investment risk is measured and monitored on an ongoing basis through quarterly liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews. Standards used to evaluate the plan’s investment manager performance include, but are not limited to, the achievement of objectives, operation within guidelines and policy, and comparison against a relative benchmark. In addition, each manager of the investment funds held by the plan is ranked against a universe of peers and compared to a relative benchmark. Total plan performance analysis includes an analysis of the market environment, asset allocation impact on performance, risk and return relative to other ERISA plans, and manager impacts upon plan performance. | |||||||||||||||||||||||||||||||||||||
The following describes the hierarchy of inputs used to measure fair value and the primary valuation methodologies used by Northern Trust for the U.S. qualified plan assets measured at fair value. | |||||||||||||||||||||||||||||||||||||
Level 1 – Quoted, active market prices for identical assets or liabilities. The U.S. pension plan’s Level 1 investments include foreign and domestic common stocks, a commodity return strategy fund, and mutual funds. The U.S. pension plan’s Level 1 investments are exchange traded and are valued at the closing price reported by the respective exchanges on the day of valuation. Share prices of the funds, referred to as a fund’s Net Asset Value (NAV), are calculated daily based on the closing market prices and accruals of securities in the fund’s total portfolio (total value of the fund) divided by the number of fund shares currently issued and outstanding. Redemptions of the mutual and collective trust fund shares occur by contract at the respective fund’s redemption date NAV. | |||||||||||||||||||||||||||||||||||||
Level 2 – Observable inputs other than Level 1 prices, such as quoted active market prices for similar assets or liabilities, quoted prices for identical or similar assets in inactive markets, and model-derived valuations in which all significant inputs are observable in active markets. The U.S. pension plan’s Level 2 assets include foreign preferred stocks, U.S. government securities, and collective trust funds. U.S. government securities are valued by a third party pricing source that incorporates market observable data such as reported sales of similar securities, broker quotes and reference data. The inputs used are based on observable data in active markets. The NAVs of the funds are calculated monthly based on the closing market prices and accruals of securities in the fund’s total portfolio (total value of the fund) divided by the number of fund shares currently issued and outstanding. Redemptions of the mutual and collective trust fund shares occur by contract at the respective fund’s redemption date NAV. | |||||||||||||||||||||||||||||||||||||
Level 3 – Valuation techniques in which one or more significant inputs are unobservable in the marketplace. The U.S. pension plan’s Level 3 assets are private equity and hedge funds which invest in underlying groups of investment funds or other pooled investment vehicles that are selected by the respective funds’ investment managers. The investment funds and the underlying investments held by these investment funds are valued at fair value. In determining the fair value of the underlying investments of each fund, the fund’s investment manager or general partner takes into account the estimated value reported by the underlying funds as well as any other considerations that may, in their judgment, increase or decrease such estimated value. | |||||||||||||||||||||||||||||||||||||
While Northern Trust believes its valuation methods for plan assets are appropriate and consistent with other market participants, the use of different methodologies or assumptions, particularly as applied to Level 3 assets, could have a material effect on the computation of their estimated fair values. | |||||||||||||||||||||||||||||||||||||
The following table presents the fair values of Northern Trust’s U.S. pension plan assets, by major asset category, and their level within the fair value hierarchy defined by GAAP as of December 31, 2014, and 2013. | |||||||||||||||||||||||||||||||||||||
TABLE 93: FAIR VALUE OF U.S. PENSION PLAN ASSETS | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | |||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||||
U.S. | $ | 14.8 | $ | – | $ | – | $ | 14.8 | |||||||||||||||||||||||||||||
Fixed Income – U.S. Government | – | 159.5 | – | 159.5 | |||||||||||||||||||||||||||||||||
Other Investments | |||||||||||||||||||||||||||||||||||||
Mutual Funds: | |||||||||||||||||||||||||||||||||||||
Global Large Cap Blend | 69.6 | – | – | 69.6 | |||||||||||||||||||||||||||||||||
Collective Trust Funds: | |||||||||||||||||||||||||||||||||||||
Foreign Large Cap Blend | – | 105.4 | – | 105.4 | |||||||||||||||||||||||||||||||||
Foreign Small Cap Blend | – | 37.2 | – | 37.2 | |||||||||||||||||||||||||||||||||
Domestic Large Cap Blend | – | 196.7 | – | 196.7 | |||||||||||||||||||||||||||||||||
Domestic Small Cap Value | – | 26.5 | – | 26.5 | |||||||||||||||||||||||||||||||||
Domestic Mid Cap Value | – | 14.4 | – | 14.4 | |||||||||||||||||||||||||||||||||
Domestic Small Cap Growth | – | 21.2 | – | 21.2 | |||||||||||||||||||||||||||||||||
Domestic Mid Cap Growth | – | 15.2 | – | 15.2 | |||||||||||||||||||||||||||||||||
Short-Term Investment | – | 3.4 | – | 3.4 | |||||||||||||||||||||||||||||||||
Global Real Estate Blend | – | 73.8 | – | 73.8 | |||||||||||||||||||||||||||||||||
Domestic Long-Term Bond | – | 508 | – | 508 | |||||||||||||||||||||||||||||||||
Emerging Market Large Cap Blend | – | 68.2 | – | 68.2 | |||||||||||||||||||||||||||||||||
Private Equity Funds | – | – | 49 | 49 | |||||||||||||||||||||||||||||||||
Hedge Funds | – | – | 68.6 | 68.6 | |||||||||||||||||||||||||||||||||
Cash and Other | 9.3 | – | – | 9.3 | |||||||||||||||||||||||||||||||||
Total Assets at Fair Value | $ | 93.7 | $ | 1,229.50 | $ | 117.6 | $ | 1,440.80 | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | |||||||||||||||||||||||||||||||||
Preferred and Common Stock | |||||||||||||||||||||||||||||||||||||
U.S. | $ | 116 | $ | – | $ | – | $ | 116 | |||||||||||||||||||||||||||||
Non-U.S. | 52.9 | 3.9 | – | 56.8 | |||||||||||||||||||||||||||||||||
Fixed Income – U.S. Government | – | 131.7 | – | 131.7 | |||||||||||||||||||||||||||||||||
Other Investments | |||||||||||||||||||||||||||||||||||||
Mutual Funds: | |||||||||||||||||||||||||||||||||||||
Domestic Large Cap Growth | 69.4 | – | – | 69.4 | |||||||||||||||||||||||||||||||||
Foreign Large Cap Blend | 66.6 | – | – | 66.6 | |||||||||||||||||||||||||||||||||
Collective Trust Funds: | |||||||||||||||||||||||||||||||||||||
Foreign Large Cap Blend | – | 74.3 | – | 74.3 | |||||||||||||||||||||||||||||||||
Foreign Small Cap Blend | – | 31.6 | – | 31.6 | |||||||||||||||||||||||||||||||||
Domestic Large Cap Blend | – | 101 | – | 101 | |||||||||||||||||||||||||||||||||
Domestic Small Cap Value | – | 26.3 | – | 26.3 | |||||||||||||||||||||||||||||||||
Domestic Mid Cap Value | – | 19.1 | – | 19.1 | |||||||||||||||||||||||||||||||||
Domestic Small Cap Growth | – | 14.3 | – | 14.3 | |||||||||||||||||||||||||||||||||
Domestic Mid Cap Growth | – | 38 | – | 38 | |||||||||||||||||||||||||||||||||
Short-Term Investment | – | 6.6 | – | 6.6 | |||||||||||||||||||||||||||||||||
Global Real Estate Blend | – | 65.4 | – | 65.4 | |||||||||||||||||||||||||||||||||
Domestic Long-Term Bond | – | 333.7 | – | 333.7 | |||||||||||||||||||||||||||||||||
Emerging Market Large Cap Blend | – | 40.9 | – | 40.9 | |||||||||||||||||||||||||||||||||
Commodity Linked Fund | 39.7 | – | – | 39.7 | |||||||||||||||||||||||||||||||||
Ishares Index Fund | 2.4 | – | – | 2.4 | |||||||||||||||||||||||||||||||||
Private Equity Funds | – | – | 47.7 | 47.7 | |||||||||||||||||||||||||||||||||
Hedge Funds | – | – | 55.1 | 55.1 | |||||||||||||||||||||||||||||||||
Cash and Other | 5.5 | – | – | 5.5 | |||||||||||||||||||||||||||||||||
Total Assets at Fair Value | $ | 352.5 | $ | 886.8 | $ | 102.8 | $ | 1,342.10 | |||||||||||||||||||||||||||||
The following table presents the changes in Level 3 assets for the years ended December 31, 2014, and 2013. | |||||||||||||||||||||||||||||||||||||
TABLE 94: CHANGE IN LEVEL 3 ASSETS | |||||||||||||||||||||||||||||||||||||
PRIVATE EQUITY | HEDGE FUNDS | ||||||||||||||||||||||||||||||||||||
FUNDS | |||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Fair Value at January 1 | $ | 47.7 | $ | 47.4 | $ | 55.1 | $ | 30.2 | |||||||||||||||||||||||||||||
Actual Return on Plan Assets | 10.3 | 5.5 | 1.8 | 4.9 | |||||||||||||||||||||||||||||||||
Realized Gain | – | – | 1.7 | – | |||||||||||||||||||||||||||||||||
Purchases | 3.5 | 6.2 | 15 | 20 | |||||||||||||||||||||||||||||||||
Sales | (12.5 | ) | (11.4 | ) | (5.0 | ) | – | ||||||||||||||||||||||||||||||
Fair Value at December 31 | $ | 49 | $ | 47.7 | $ | 68.6 | $ | 55.1 | |||||||||||||||||||||||||||||
Note: The return on plan assets represents the change in the unrealized gain (loss) on assets still held at December 31. | |||||||||||||||||||||||||||||||||||||
A building block approach is employed for Northern Trust’s U.S. pension plan in determining the long-term rate of return for plan assets. Historical markets and long-term historical relationships between equities, fixed income and other asset classes are studied using the widely-accepted capital market principle that assets with higher volatility generate a greater return over the long-run. Current market factors such as inflation expectations and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio rate of return is established with consideration given to diversification and rebalancing. The rate is reviewed against peer data and historical returns to verify the return is reasonable and appropriate. Based on this approach and the plan’s target asset allocation, the expected long-term rate of return on assets as of the plan’s December 31, 2014, measurement date was set at 7.25%. | |||||||||||||||||||||||||||||||||||||
Postretirement Health Care. Northern Trust maintains an unfunded postretirement health care plan under which those employees who retire at age 55 or older under the provisions of the U.S. defined benefit plan and had attained 15 years of service as of December 31, 2011 may be eligible for subsidized postretirement health care coverage. The provisions of this plan may be changed further at the discretion of Northern Trust, which also reserves the right to terminate these benefits at any time. | |||||||||||||||||||||||||||||||||||||
Effective in 2012 Northern Trust participates in an Employee Group Waiver Plan which allows Northern Trust to offer substantially the same postretirement prescription benefits to eligible participants while increasing subsidy reimbursements received by Northern Trust from the U.S. government. This action served to reduce the January 31, 2012 postretirement health care plan liability by approximately $26.7 million and increased amortization of the net actuarial gain for the year ended December 31, 2012 by approximately $3.3 million. | |||||||||||||||||||||||||||||||||||||
The following tables set forth the postretirement health care plan status and amounts included in AOCI at December 31, the net periodic postretirement benefit cost of the plan for 2014 and 2013, and the change in the accumulated postretirement benefit obligation during 2014 and 2013. | |||||||||||||||||||||||||||||||||||||
TABLE 95: POSTRETIREMENT HEALTH CARE PLAN STATUS | DECEMBER 31, | ||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Accumulated Postretirement Benefit Obligation at Measurement Date: | |||||||||||||||||||||||||||||||||||||
Retirees and Dependents | $ | 25 | $ | 22.5 | |||||||||||||||||||||||||||||||||
Actives Eligible for Benefits | 8.4 | 8.7 | |||||||||||||||||||||||||||||||||||
Net Postretirement Benefit Obligation | $ | 33.4 | $ | 31.2 | |||||||||||||||||||||||||||||||||
TABLE 96: AMOUNTS INCLUDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME | DECEMBER 31, | ||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Net Actuarial Gain | $ | (2.4 | ) | $ | (6.0 | ) | |||||||||||||||||||||||||||||||
Prior Service Benefit | – | – | |||||||||||||||||||||||||||||||||||
Gross Amount in Accumulated Other Comprehensive Income | (2.4 | ) | (6.0 | ) | |||||||||||||||||||||||||||||||||
Income Tax Effect | (0.9 | ) | (2.3 | ) | |||||||||||||||||||||||||||||||||
Net Amount in Accumulated Other Comprehensive Income | $ | (1.5 | ) | $ | (3.7 | ) | |||||||||||||||||||||||||||||||
TABLE 97: NET PERIODIC POSTRETIREMENT (BENEFIT) EXPENSE | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Service Cost | $ | 0.1 | $ | 0.1 | $ | 0.2 | |||||||||||||||||||||||||||||||
Interest Cost | 1.5 | 1.2 | 1.3 | ||||||||||||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||||||||||||||
Net (Gain) Loss | (0.6 | ) | (1.2 | ) | (2.3 | ) | |||||||||||||||||||||||||||||||
Prior Service Benefit | – | (3.0 | ) | (5.1 | ) | ||||||||||||||||||||||||||||||||
Net Periodic Postretirement (Benefit) Expense | $ | 1 | $ | (2.9 | ) | $ | (5.9 | ) | |||||||||||||||||||||||||||||
TABLE 98: CHANGE IN ACCUMULATED POSTRETIREMENT BENEFIT OBLIGATION | FOR THE YEAR ENDED | ||||||||||||||||||||||||||||||||||||
DECEMBER 31, | |||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 31.2 | $ | 30.6 | |||||||||||||||||||||||||||||||||
Service Cost | 0.1 | 0.1 | |||||||||||||||||||||||||||||||||||
Interest Cost | 1.5 | 1.2 | |||||||||||||||||||||||||||||||||||
Actuarial Loss | 3 | 1.9 | |||||||||||||||||||||||||||||||||||
Net Claims Paid | (3.1 | ) | (2.8 | ) | |||||||||||||||||||||||||||||||||
Medicare Subsidy | 0.7 | 0.2 | |||||||||||||||||||||||||||||||||||
Ending Balance | $ | 33.4 | $ | 31.2 | |||||||||||||||||||||||||||||||||
Northern Trust’s December 31, 2014, adoption of the RP-2014 mortality table with improvement scale MP-2014 resulted in a $2.2 million increase in the accumulated postretirement benefit obligation as of December 31, 2014. | |||||||||||||||||||||||||||||||||||||
TABLE 99: ESTIMATED FUTURE BENEFIT PAYMENTS | |||||||||||||||||||||||||||||||||||||
(In Millions) | TOTAL | ||||||||||||||||||||||||||||||||||||
POSTRETIREMENT | |||||||||||||||||||||||||||||||||||||
MEDICAL | |||||||||||||||||||||||||||||||||||||
BENEFITS | |||||||||||||||||||||||||||||||||||||
2015 | $ | 3 | |||||||||||||||||||||||||||||||||||
2016 | 3.1 | ||||||||||||||||||||||||||||||||||||
2017 | 3.1 | ||||||||||||||||||||||||||||||||||||
2018 | 3.1 | ||||||||||||||||||||||||||||||||||||
2019 | 3.1 | ||||||||||||||||||||||||||||||||||||
2020-2024 | 12.9 | ||||||||||||||||||||||||||||||||||||
Net periodic postretirement (benefit) expense for 2015 is not expected to include any amortization from AOCI of the net actuarial gain. The weighted average discount rate used in determining the accumulated postretirement benefit obligation was 4.25% at December 31, 2014, and 5.0% at December 31, 2013. For measurement purposes, an 8.0% annual increase in the cost of pre-age 65 medical and drug benefits and a 7.5% annual increase in the cost of post-age 65 medical and drug benefits were assumed for 2014. These rates are both assumed to gradually decrease until they reach 5.0% in 2022. The health care cost trend rate assumption has an effect on the amounts reported. For example, increasing or decreasing the assumed health care trend rate by one percentage point in each year would have the following effect. | |||||||||||||||||||||||||||||||||||||
TABLE 100: HEALTH CARE COST TREND RATE ASSUMPTION | |||||||||||||||||||||||||||||||||||||
(In Millions) | 1–PERCENTAGE | 1–PERCENTAGE | |||||||||||||||||||||||||||||||||||
POINT INCREASE | POINT DECREASE | ||||||||||||||||||||||||||||||||||||
Effect on Postretirement Benefit Obligation | $ | 1 | $ | (0.9 | ) | ||||||||||||||||||||||||||||||||
Effect on Total Service and Interest Cost Components | – | – | |||||||||||||||||||||||||||||||||||
Defined Contribution Plans. The Corporation and its subsidiaries maintain various defined contribution plans covering substantially all employees. The Corporation’s contribution includes a matching component. The expense associated with defined contribution plans is charged to employee benefits and totaled $46.8 million in 2014, $43.0 million in 2013, and $41.0 million in 2012. | |||||||||||||||||||||||||||||||||||||
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Share-Based Compensation Plans | Note 22 – Share-Based Compensation Plans | ||||||||||||||||
Northern Trust recognizes expense for the grant-date fair value of stock options and other share-based compensation granted to employees and non-employee directors. | |||||||||||||||||
Total compensation expense for share-based payment arrangements to employees and the associated tax impacts were as follows for the periods presented: | |||||||||||||||||
TABLE 101: TOTAL COMPENSATION EXPENSE FOR SHARE-BASED PAYMENT ARRANGEMENTS TO EMPLOYEES | |||||||||||||||||
FOR THE YEAR ENDED | |||||||||||||||||
DECEMBER 31, | |||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||
Restricted Stock Unit Awards | $ | 52.9 | $ | 48 | $ | 44 | |||||||||||
Stock Options | 12.8 | 18.4 | 27.4 | ||||||||||||||
Performance Stock Units | 12 | 7.4 | 2.5 | ||||||||||||||
Total Share-Based Compensation Expense | $ | 77.7 | $ | 73.8 | $ | 73.9 | |||||||||||
Tax Benefits Recognized | $ | 29.1 | $ | 27.7 | $ | 27.7 | |||||||||||
As of December 31, 2014, there was $112.6 million of unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Corporation’s share-based compensation plans. That cost is expected to be recognized as expense over a weighted-average period of approximately three years. | |||||||||||||||||
The Northern Trust Corporation 2012 Stock Plan (2012 Plan) is administered by the Compensation and Benefits Committee (Committee) of the Board. All employees of the Corporation and its subsidiaries and all directors of the Corporation are eligible to receive awards under the 2012 Plan. The 2012 Plan provides for the grant of nonqualified stock options, incentive stock options, stock appreciation rights, stock awards, stock units and performance stock units. Grants are outstanding under the 2012 Plan and The Amended and Restated Northern Trust Corporation 2002 Stock Plan (2002 Plan), a predecessor plan. The total number of shares of the Corporation’s common stock authorized for issuance under the 2012 Plan is 30,000,000 plus shares forfeited under the 2002 Plan. As of December 31, 2014, shares available for future grant under the 2012 Plan, including shares forfeited under the 2002 Plan, totaled 29,803,955. | |||||||||||||||||
The following describes Northern Trust’s share-based payment arrangements and applies to awards under the 2012 Plan and the 2002 Plan, as applicable. | |||||||||||||||||
Stock Options. Stock options consist of options to purchase common stock at prices not less than 100% of the fair value thereof on the date the options are granted. Options have a maximum ten-year life and generally vest and become exercisable in one to four years after the date of grant. In addition, all options may become exercisable either upon a “change of control” as defined in the 2012 Plan and the 2002 Plan or, in the case of options issued after September 2012, upon certain involuntary terminations of employment following a change of control. All options terminate at such time as determined by the Committee and as provided in the terms and conditions of the respective option grants. | |||||||||||||||||
The weighted-average assumptions used for options granted during the years ended December 31 are as follows: | |||||||||||||||||
TABLE 102: WEIGHTED-AVERAGE ASSUMPTIONS USED FOR OPTIONS GRANTED | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected Term (in Years) | 7.3 | 7.6 | 7.5 | ||||||||||||||
Dividend Yield | 2.16 | % | 2.38 | % | 2.79 | % | |||||||||||
Expected Volatility | 30.1 | 29.5 | 34 | ||||||||||||||
Risk-Free Interest Rate | 2.02 | 1.43 | 1.42 | ||||||||||||||
The expected term of options represents the period of time options granted are expected to be outstanding based primarily on the historical exercise behavior attributable to previous option grants. Dividend yield represents the estimated yield from dividends paid on the Corporation’s common stock over the expected term of the options. Expected volatility is determined based on a combination of the historical volatility of Northern Trust’s stock price and the implied volatility of traded options on Northern Trust stock. The risk free interest rate is based on the U.S. Treasury yield curve at the time of grant for a period equal to the expected term of the options granted. | |||||||||||||||||
The following table provides information about stock options granted, vested, and exercised in the years ended December 31, 2014, 2013, and 2012. | |||||||||||||||||
TABLE 103: STOCK OPTIONS GRANTED, VESTED, AND EXERCISED | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||||||
(In Millions, Except Per Share Information) | 2014 | 2013 | 2012 | ||||||||||||||
Weighted Average Grant-Date Per Share Fair Value of Stock Options Granted | $ | 16.22 | $ | 12.8 | $ | 11.54 | |||||||||||
Grant-Date Fair Value of Stock Options Vested | 21.9 | 30 | 32.1 | ||||||||||||||
Stock Options Exercised | |||||||||||||||||
Intrinsic Value as of Exercise Date | 35.3 | 26.9 | 12.8 | ||||||||||||||
Cash Received | 127.5 | 146.2 | 32.3 | ||||||||||||||
Tax Deduction Benefits Realized | 12.9 | 9.8 | 4.6 | ||||||||||||||
The following is a summary of changes in nonvested stock options for the year ended December 31, 2014. | |||||||||||||||||
TABLE 104: CHANGES IN NONVESTED STOCK OPTIONS | |||||||||||||||||
NONVESTED OPTIONS | SHARES | WEIGHTED- | |||||||||||||||
AVERAGE | |||||||||||||||||
GRANT- | |||||||||||||||||
DATE FAIR | |||||||||||||||||
VALUE | |||||||||||||||||
PER SHARE | |||||||||||||||||
Nonvested at December 31, 2013 | 3,303,826 | $ | 13.4 | ||||||||||||||
Granted | 386,749 | 16.22 | |||||||||||||||
Vested | (1,579,414 | ) | 13.85 | ||||||||||||||
Forfeited or Cancelled | (82,601 | ) | 13.09 | ||||||||||||||
Nonvested at December 31, 2014 | 2,028,560 | $ | 13.6 | ||||||||||||||
A summary of the status of stock options under the 2012 Plan and the 2002 Plan at December 31, 2014, and changes during the year then ended, are presented in the table below. | |||||||||||||||||
TABLE 105: STATUS OF STOCK OPTIONS AND CHANGES | |||||||||||||||||
($ In Millions Except Per Share Information) | SHARES | WEIGHTED | WEIGHTED | AGGREGATE | |||||||||||||
AVERAGE | AVERAGE | INTRINSIC | |||||||||||||||
EXERCISE | REMAINING | VALUE | |||||||||||||||
PRICE | CONTRACTUAL | ||||||||||||||||
PER SHARE | TERM (YEARS) | ||||||||||||||||
Options Outstanding, December 31, 2013 | 11,992,811 | $ | 53.64 | ||||||||||||||
Granted | 386,749 | 60.85 | |||||||||||||||
Exercised | (2,515,769 | ) | 50.7 | ||||||||||||||
Forfeited, Expired or Cancelled | (192,710 | ) | 53.54 | ||||||||||||||
Options Outstanding, December 31, 2014 | 9,671,081 | $ | 54.7 | 5.1 | $ | 132.6 | |||||||||||
Options Exercisable, December 31, 2014 | 7,642,521 | $ | 55.82 | 4.5 | $ | 96.9 | |||||||||||
Restricted Stock Unit Awards. Restricted stock unit awards may be granted to participants which entitle them to receive a payment in the Corporation’s common stock or cash under the terms of the 2012 Plan and such other terms and conditions as the Committee deems appropriate. Each restricted stock unit provides the recipient the opportunity to receive one share of stock for each stock unit that vests. The restricted stock units granted in 2014 predominately vest at a rate equal to 50% on the third anniversary date of the grant and 50% on the fourth anniversary date. Restricted stock unit grants totaled 1,086,241, 1,181,321, and 988,421, with weighted average grant-date fair values of $61.17, $52.82, and $43.72 per share, for the years ended December 31, 2014, 2013, and 2012, respectively. The total fair value of restricted stock units vested during the years ended December 31, 2014, 2013, and 2012, was $63.9 million, $47.0 million, and $21.6 million, respectively. | |||||||||||||||||
A summary of the status of outstanding restricted stock unit awards under the 2012 Plan and the 2002 Plan at December 31, 2013, and changes during the year then ended, is presented in the table below. | |||||||||||||||||
TABLE 106: OUTSTANDING RESTRICTED STOCK UNIT AWARDS | |||||||||||||||||
($ In Millions) | NUMBER | AGGREGATE | |||||||||||||||
INTRINSIC | |||||||||||||||||
VALUE | |||||||||||||||||
Restricted Stock Unit Awards Outstanding, December 31, 2013 | 3,478,886 | $ | 215.3 | ||||||||||||||
Granted | 1,086,241 | ||||||||||||||||
Distributed | (1,015,253 | ) | |||||||||||||||
Forfeited | (167,965 | ) | |||||||||||||||
Stock and Stock Unit Awards Outstanding, December 31, 2014 | 3,381,909 | $ | 227.9 | ||||||||||||||
Units Convertible, December 31, 2014 | 187,010 | $ | 12.6 | ||||||||||||||
The following is a summary of nonvested restricted stock unit awards at December 31, 2013, and changes during the year then ended. | |||||||||||||||||
TABLE 107: NONVESTED RESTRICTED STOCK UNIT AWARDS | |||||||||||||||||
NONVESTED RESTRICTED | NUMBER | WEIGHTED | WEIGHTED | ||||||||||||||
STOCK UNITS | AVERAGE | AVERAGE | |||||||||||||||
GRANT- | REMAINING | ||||||||||||||||
DATE FAIR | VESTING | ||||||||||||||||
VALUE | TERM | ||||||||||||||||
PER UNIT | (YEARS) | ||||||||||||||||
Nonvested at December 31, 2013 | 3,297,827 | $ | 49.76 | 2 | |||||||||||||
Granted | 1,086,241 | 61.17 | |||||||||||||||
Vested | (1,021,204 | ) | 50.92 | ||||||||||||||
Forfeited | (167,965 | ) | 52.18 | ||||||||||||||
Nonvested at December 31, 2014 | 3,194,899 | $ | 53.14 | 1.9 | |||||||||||||
Performance Stock Units. Each performance stock unit provides the recipient the opportunity to receive one share of stock for each stock unit that vests. The number of performance stock units granted that may vest ranges from 0% to 125% of the original award granted based on the attainment of a three-year average return on equity target. Distribution of the shares is then made after vesting. | |||||||||||||||||
During the years ended December 31, 2014 and 2013, respectively, 249,618 and 296,650 performance stock units were granted with weighted average grant-date fair values of $53.08 and $49.07, respectively. Performance stock units outstanding at December 31, 2014 and 2013, respectively, had aggregate intrinsic values of $48.8 and $30.6 million and weighted average remaining vesting terms of 2.2 and 2.7 years, respectively. | |||||||||||||||||
Non-employee Director Stock Awards. Stock units with total values of $1.0 million (16,770 units), $1.1 million (20,599 units), and $0.9 million (20,148 units) were granted to non-employee directors in 2014, 2013 and 2012, respectively, which vest or vested on the date of the annual meeting of the Corporation’s stockholders in the following years. Total expense recognized on these grants was $1.0 million, $1.1 million, and $0.9 million in 2014, 2013, and 2012, respectively. Stock units granted to non-employee directors do not have voting rights. Each stock unit entitles a director to one share of common stock at vesting, unless a director elects to defer receipt of the shares. Directors may elect to defer the payment of their annual stock unit grant and cash-based compensation until termination of services as director. Deferred cash compensation is converted into stock units representing shares of common stock of the Corporation. Distributions of deferred stock units are made in stock. Distributions of the stock unit accounts that relate to cash-based compensation are made in cash based on the fair value of the stock units at the time of distribution. |
CashBased_Compensation_Plans
Cash-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2014 | |
Cash-Based Compensation Plans | Note 23 – Cash-Based Compensation Plans |
Various incentive plans provide for cash incentives and bonuses to selected employees based upon accomplishment of corporate net income objectives, goals of the reporting segments and support functions, and individual performance. The provision for awards under these plans is charged to compensation expense and totaled $212.4 million in 2014, $192.4 million in 2013, and $186.8 million in 2012. |
Contingent_Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2014 | |
Contingent Liabilities | Note 24 – Contingent Liabilities |
Legal Proceedings. In the normal course of business, the Corporation and its subsidiaries are routinely defendants in or parties to a number of pending and threatened legal actions, including, but not limited to, actions brought on behalf of various claimants or classes of claimants, regulatory matters, employment matters, and challenges from tax authorities regarding the amount of taxes due. In certain of these actions and proceedings, claims for substantial monetary damages or adjustments to recorded tax liabilities are asserted. | |
Based on current knowledge, after consultation with legal counsel and after taking into account current accruals, management does not believe that losses, if any, arising from pending litigation or threatened legal actions or regulatory matters will have a material adverse effect on the consolidated financial position or liquidity of the Corporation, although such matters could have a material adverse effect on the Corporation’s operating results for a particular period. | |
Under GAAP, (i) an event is “probable” if the “future event or events are likely to occur”; (ii) an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely”; and (iii) an event is “remote” if “the chance of the future event or events occurring is slight.” | |
For the reasons set out in this paragraph, the outcome of some matters is inherently difficult to predict and/or the range of loss cannot be reasonably estimated. This may be the case in matters that (i) will be decided by a jury, (ii) are in early stages, (iii) involve uncertainty as to the likelihood of a class being certified or the ultimate size of the class, (iv) are subject to appeals or motions, (v) involve significant factual issues to be resolved, including with respect to the amount of damages, (vi) do not specify the amount of damages sought, or (vii) seek very large damages based on novel and complex damage and liability legal theories. Accordingly, the Corporation cannot reasonably estimate the eventual outcome of these pending matters, the timing of their ultimate resolution, or what the eventual loss, fines or penalties, if any, related to each pending matter will be. | |
In accordance with applicable accounting guidance, the Corporation records accruals for litigation and regulatory matters when those matters present loss contingencies that are both probable and reasonably estimable. When loss contingencies are not both probable and reasonably estimable, the Corporation does not record accruals. No material accruals have been recorded for pending litigation or threatened legal actions or regulatory matters. | |
For a limited number of the matters for which a loss is reasonably possible in future periods, whether in excess of an accrued liability or where there is no accrued liability, the Corporation is able to estimate a range of possible loss. As of December 31, 2014, the Corporation has estimated the upper end of the range of reasonably possible losses for these matters to be approximately $130 million in the aggregate. This aggregate amount of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results will vary significantly from the current estimate. | |
In certain other pending matters, there may be a range of reasonably possible losses (including reasonably possible losses in excess of amounts accrued) that cannot be reasonably estimated for the reasons described above. Such matters are not included in the estimate of reasonably possible losses identified above. | |
As previously disclosed, a number of participants in Northern Trust’s securities lending program, which is associated with Northern Trust’s asset servicing business, have commenced either individual lawsuits or purported class actions in which they claim, among other things, that Northern Trust failed to exercise prudence in the investment management of the collateral received from the borrowers of the securities, resulting in losses that they seek to recover. The cases assert various contractual, statutory and common law claims, including claims for breach of fiduciary duty under common law and under the Employee Retirement Income Security Act (ERISA). In 2013, Northern Trust recorded a $19.2 million pre-tax charge in connection with an agreement to resolve claims related to two of these lawsuits. The settlements are not final as they require court approval. Other lawsuits related to securities lending are not part of the proposed settlement, and remain pending. | |
In April 2014, Northern Trust received a subpoena from the U.S. Securities and Exchange Commission (SEC) seeking documents related to Northern Trust’s securities lending activities. Northern Trust is cooperating with the SEC in this investigation. | |
In January 2015 the Public Prosecutor’s Office of France recommended that Northern Trust Fiduciary Services (Guernsey) Limited (NTFS), an indirect subsidiary of the Corporation, be charged with complicity in tax fraud and aggravated money laundering relating to the administration of two trusts for which NTFS serves as trustee. As trustee, NTFS provided no tax advice and had no involvement in the preparation or filing of the challenged estate tax filings. Charges against a number of other persons and entities also were recommended related to this matter. The parties currently are awaiting an investigating judge’s decision whether to bring the recommended criminal charges. If charges are brought, NTFS will contest them in the French court. | |
Visa Membership. Northern Trust, as a member of Visa U.S.A. Inc. and in connection with the 2007 initial public offering of Visa, Inc. (Visa), received shares of restricted stock in Visa. As of December 31, 2014, the Visa shares held by Northern Trust are recorded at their original cost basis of zero and have restrictions as to their sale or transfer. | |
Northern Trust is obligated to indemnify Visa for losses resulting from certain indemnified litigation relating to interchange fees and has been required to recognize, at its estimated fair value in accordance with GAAP, a guarantee liability arising from such litigation that has not yet settled. During 2007, Northern Trust recorded liabilities relating to Visa indemnified litigation. Subsequently, Visa established an escrow account to cover the settlements of, or judgments in, indemnified litigation. The fundings by Visa of its escrow account resulted in reductions of Northern Trust’s indemnification liability. Northern Trust’s indemnification liability was fully eliminated as of December 31, 2011. On October 19, 2012, Visa signed a settlement agreement with plaintiff representatives for binding settlement of the indemnified litigation. On January 14, 2014, the trial court entered a final judgment order approving the settlement with the class plaintiffs, which is subject to appeal. A number of objectors have appealed from that order and more than 30 opt-out cases have been filed by merchants in various federal district courts. | |
While the ultimate resolution of the indemnified litigation and the timing for removal of selling restrictions on the Visa shares are highly uncertain, Northern Trust anticipates that the value of its Visa shares will be adequate to offset any remaining indemnification obligations related to Visa litigation. | |
Contingent Purchase Consideration. In connection with an acquisition consummated in 2011, contingent consideration was recorded relating to certain performance-related purchase price adjustments. The fair value of the contingent consideration was $55.4 million at December 31, 2013. In April 2014, Northern Trust made a payment of $55.3 million to extinguish the contingent consideration liability at the value agreed by the parties. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Note 25 – Derivative Financial Instruments | ||||||||||||||||||||||||||||||||||||
Northern Trust is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients; as part of its trading activity for its own account; and as part of its risk management activities. These instruments include foreign exchange contracts, interest rate contracts, and credit default swap contracts. | |||||||||||||||||||||||||||||||||||||
Northern Trust’s primary risks associated with these instruments is the possibility that interest rates, foreign exchange rates, or credit spreads could change in an unanticipated manner, resulting in higher costs or a loss in the underlying value of the instrument. These risks are mitigated by establishing limits, monitoring the level of actual positions taken against such established limits, and monitoring the level of any interest rate sensitivity gaps created by such positions. When establishing position limits, market liquidity and volatility, as well as experience in each market, are taken into account. | |||||||||||||||||||||||||||||||||||||
Credit risk associated with derivative instruments relates to the failure of the counterparty and the failure of Northern Trust to pay based on the contractual terms of the agreement, and is generally limited to the unrealized fair value gains and losses, respectively, on these instruments, net of any cash collateral received or deposited. The amount of credit risk will increase or decrease during the lives of the instruments as interest rates, foreign exchange rates, or credit spreads fluctuate. Northern Trust’s risk is controlled by limiting such activity to an approved list of counterparties and by subjecting such activity to the same credit and quality controls as are followed in lending and investment activities. Credit Support Annexes and other similar agreements are currently in place with a number of Northern Trust’s counterparties which mitigate the aforementioned credit risk associated with derivative activity conducted with those counterparties by requiring that significant net unrealized fair value gains be supported by collateral placed with Northern Trust. | |||||||||||||||||||||||||||||||||||||
Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. Derivative assets and liabilities recorded in the consolidated balance sheet were each reduced by $1.9 billion and $1.2 billion as of December 31, 2014 and 2013, respectively, as a result of master netting arrangements and similar agreements in place. Derivative assets and liabilities recorded at December 31, 2014 also reflect reductions of $315.8 million and $1.2 billion, respectively, as a result of cash collateral received from and deposited with derivative counterparties. This compares with reductions of derivative assets and liabilities of $210.7 million and $767.7 million, respectively, at December 31, 2013. Additional cash collateral received from and deposited with derivative counterparties totaling $19.6 million and $153.2 million, respectively, as of December 31, 2014, and $36.4 million and $39.3 million, respectively, as of December 31, 2013, were not offset against derivative assets and liabilities on the consolidated balance sheet as the amounts exceeded the net derivative positions with those counterparties. Northern Trust centrally clears certain interest rate derivative instruments as required under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Securities posted as collateral for these transactions totaled $27.4 million and $27.6 million at December 31, 2014 and 2013, respectively, are not offset against derivative assets and liabilities on the consolidated balance sheet, and the counterparty receiving the securities as collateral does not have the right to repledge or sell the securities. | |||||||||||||||||||||||||||||||||||||
Certain master netting arrangements Northern Trust enters into with derivative counterparties contain credit risk-related contingent features in which the counterparty has the option to declare Northern Trust in default and accelerate cash settlement of net derivative liabilities with the counterparty in the event Northern Trust’s credit rating falls below specified levels. The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a liability position was $299.5 million and $257.3 million at December 31, 2014 and 2013, respectively. Cash collateral amounts deposited with derivative counterparties on those dates included $272.9 million and $197.0 million, respectively, posted against these liabilities, resulting in a net maximum amount of termination payments that could have been required at December 31, 2014 and 2013 of $26.6 million and $60.3 million, respectively. Accelerated settlement of these liabilities would not have a material effect on the consolidated financial position or liquidity of Northern Trust. | |||||||||||||||||||||||||||||||||||||
Foreign exchange contracts are agreements to exchange specific amounts of currencies at a future date, at a specified rate of exchange. Foreign exchange contracts are entered into primarily to meet the foreign exchange needs of clients. Foreign exchange contracts are also used for trading purposes and risk management. For risk management purposes, Northern Trust uses foreign exchange contracts to reduce its exposure to changes in foreign exchange rates relating to certain forecasted non-functional currency denominated revenue and expenditure transactions, foreign currency denominated assets and liabilities, and net investments in non-U.S. affiliates. | |||||||||||||||||||||||||||||||||||||
Interest rate contracts include swap and option contracts. Interest rate swap contracts involve the exchange of fixed and floating rate interest payment obligations without the exchange of the underlying principal amounts. Northern Trust enters into interest rate swap contracts with its clients and also may utilize such contracts to reduce or eliminate the exposure to changes in the cash flows or fair value of hedged assets or liabilities due to changes in interest rates. Interest rate option contracts may include caps, floors, collars and swaptions, and provide for the transfer or reduction of interest rate risk, typically in exchange for a fee. Northern Trust enters into option contracts primarily as a seller of interest rate protection to clients. Northern Trust receives a fee at the outset of the agreement for the assumption of the risk of an unfavorable change in interest rates. This assumed interest rate risk is then mitigated by entering into an offsetting position with an outside counterparty. Northern Trust may also purchase or enter into option contracts for risk management purposes including to reduce the exposure to changes in the cash flows of hedged assets due to changes in interest rates. | |||||||||||||||||||||||||||||||||||||
Credit default swap contracts are agreements to transfer credit default risk from one party to another in exchange for a fee. Northern Trust enters into credit default swaps with outside counterparties where the counterparty agrees to assume the underlying credit exposure of a specific Northern Trust commercial loan or loan commitment. | |||||||||||||||||||||||||||||||||||||
Client-Related and Trading Derivative Instruments. Approximately 97% of Northern Trust’s derivatives outstanding at December 31, 2014 and 2013, measured on a notional value basis, relate to client-related and trading activities. These activities consist principally of providing foreign exchange services to clients in connection with Northern Trust’s global custody business. However, in the normal course of business, Northern Trust also engages in trading of currencies for its own account. | |||||||||||||||||||||||||||||||||||||
The following table shows the notional and fair values of client-related and trading derivative financial instruments. Notional amounts of derivative financial instruments do not represent credit risk, and are not recorded in the consolidated balance sheet. They are used merely to express the volume of this activity. Northern Trust’s credit-related risk of loss is limited to the positive fair value of the derivative instrument, which is significantly less than the notional amount. | |||||||||||||||||||||||||||||||||||||
TABLE 108: NOTIONAL AND FAIR VALUES OF CLIENT-RELATED AND TRADING DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||||||||
DECEMBER 31, 2014 | DECEMBER 31, 2013 | ||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE | ||||||||||||||||||||||||||||||||||||
(In Millions) | NOTIONAL | ASSET | LIABILITY | NOTIONAL | ASSET | LIABILITY | |||||||||||||||||||||||||||||||
VALUE | VALUE | ||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 257,568.70 | $ | 4,149.50 | $ | 4,072.00 | $ | 243,135.00 | $ | 2,844.70 | $ | 2,846.20 | |||||||||||||||||||||||||
Interest Rate Contracts | 5,353.80 | 105.5 | 101.3 | 5,001.70 | 122.8 | 117 | |||||||||||||||||||||||||||||||
Total | $ | 262,922.50 | $ | 4,255.00 | $ | 4,173.30 | $ | 248,136.70 | $ | 2,967.50 | $ | 2,963.20 | |||||||||||||||||||||||||
Changes in the fair value of client-related and trading derivative instruments are recognized currently in income. The following table shows the location and amount of gains and losses recorded in the consolidated statement of income for the years ended December 31, 2014, 2013, and 2012. | |||||||||||||||||||||||||||||||||||||
TABLE 109: LOCATION AND AMOUNT OF GAINS AND LOSSES RECORDED IN INCOME | |||||||||||||||||||||||||||||||||||||
(In Millions) | LOCATION OF DERIVATIVE | AMOUNT OF DERIVATIVE GAIN/ | |||||||||||||||||||||||||||||||||||
GAIN/(LOSS) RECOGNIZED | (LOSS) RECOGNIZED IN INCOME DECEMBER 31, | ||||||||||||||||||||||||||||||||||||
IN INCOME | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Foreign Exchange Trading Income | $ | 210.1 | $ | 244.4 | $ | 206.1 | ||||||||||||||||||||||||||||||
Interest Rate Contracts | Security Commissions and Trading Income | 9.3 | 12.7 | 11.6 | |||||||||||||||||||||||||||||||||
Total | $ | 219.4 | $ | 257.1 | $ | 217.7 | |||||||||||||||||||||||||||||||
Risk Management Instruments. Northern Trust uses derivative instruments to hedge its exposure to foreign currency, interest rate, and credit risk. | |||||||||||||||||||||||||||||||||||||
The following table identifies the types and classifications of derivative instruments formally designated as hedges under GAAP and used by Northern Trust to manage risk, their notional and fair values, and the respective risks addressed. | |||||||||||||||||||||||||||||||||||||
TABLE 110: NOTIONAL AND FAIR VALUES OF DESIGNATED RISK MANAGEMENT DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE | ||||||||||||||||||||||||||||||||||||
(In Millions) | DERIVATIVE | RISK | NOTIONAL | ASSET | LIABILITY | NOTIONAL | ASSET | LIABILITY | |||||||||||||||||||||||||||||
INSTRUMENT | CLASSIFICATION | VALUE | VALUE | ||||||||||||||||||||||||||||||||||
FAIR VALUE HEDGES | |||||||||||||||||||||||||||||||||||||
Available for Sale Investment Securities | Interest Rate Swap Contracts | Interest Rate | $ | 2,859.50 | $ | 12.7 | $ | 28.5 | $ | 3,296.90 | $ | 31.5 | $ | 44.8 | |||||||||||||||||||||||
Senior Notes and Long-Term Subordinated Debt | Interest Rate Swap Contracts | Interest Rate | 1,250.00 | 112.8 | 2 | 1,250.00 | 83.6 | 33.4 | |||||||||||||||||||||||||||||
CASH FLOW HEDGES | |||||||||||||||||||||||||||||||||||||
Forecasted Foreign Currency Denominated Transactions | Foreign Exchange Contracts | Foreign Currency | 344.9 | 6 | 14.8 | 314 | 10.2 | 5.5 | |||||||||||||||||||||||||||||
Available for Sale Investment Securities | Interest Rate Swap Contracts | Interest Rate | 10 | – | – | – | – | – | |||||||||||||||||||||||||||||
Available for Sale Investment Securities | Interest Rate Options | Interest Rate | 625 | 1.3 | – | – | – | – | |||||||||||||||||||||||||||||
Contracts | |||||||||||||||||||||||||||||||||||||
NET INVESTMENT HEDGES | |||||||||||||||||||||||||||||||||||||
Net Investments in Non-U.S. Affiliates | Foreign Exchange Contracts | Foreign Currency | 1,795.40 | 118.9 | 3.4 | 1,684.90 | 9.8 | 52.8 | |||||||||||||||||||||||||||||
Total | $ | 6,884.80 | $ | 251.7 | $ | 48.7 | $ | 6,545.80 | $ | 135.1 | $ | 136.5 | |||||||||||||||||||||||||
In addition to the above, Sterling-denominated debt, totaling $243.9 million and $259.1 million at December 31, 2014 and 2013, respectively, was designated as a hedge of the foreign exchange risk associated with the net investment in certain non-U.S. affiliates. Derivatives are designated as fair value hedges to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates. The following table shows the location and amount of derivative gains and losses recorded in the consolidated statement of income related to fair value hedges for the years ended December 31, 2014, 2013, and 2012. | |||||||||||||||||||||||||||||||||||||
TABLE 111: LOCATION AND AMOUNT OF DERIVATIVE GAINS AND LOSSES RECORDED IN INCOME | |||||||||||||||||||||||||||||||||||||
DERIVATIVE | LOCATION OF DERIVATIVE | AMOUNT OF DERIVATIVE GAIN/ | |||||||||||||||||||||||||||||||||||
INSTRUMENT | GAIN/(LOSS) RECOGNIZED | (LOSS) RECOGNIZED IN INCOME | |||||||||||||||||||||||||||||||||||
IN INCOME | DECEMBER 31, | ||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Available for Sale Investment Securities | Interest Rate Swap Contracts | Interest Income | $ | (36.4 | ) | $ | 26.3 | $ | (48.4 | ) | |||||||||||||||||||||||||||
Senior Notes and Long-Term Subordinated Debt | Interest Rate Swap Contracts | Interest Expense | 104 | (44.9 | ) | 54.3 | |||||||||||||||||||||||||||||||
Total | $ | 67.6 | $ | (18.6 | ) | $ | 5.9 | ||||||||||||||||||||||||||||||
There was no ineffectiveness or change in the fair value of hedged items recognized in earnings for fair value hedges during the year ended December 31, 2014. There was $0.9 million of losses, and $0.4 million of gains recorded within the fair values of hedged items for “long-haul” hedges during the years ended December 31, 2013, and 2012, respectively, and $0.8 million of losses, and $0.3 million of gains from ineffectiveness recorded during the years ended December 31, 2013, and 2012, respectively. | |||||||||||||||||||||||||||||||||||||
Derivatives are also designated as cash flow hedges in order to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates. There was no ineffectiveness recognized in earnings for cash flow hedges during the years ended December 31, 2014, 2013, or 2012. As of December 31, 2014, 23 months was the maximum length of time over which the exposure to variability in future cash flows of forecasted foreign currency denominated transactions was being hedged. | |||||||||||||||||||||||||||||||||||||
The following table provides cash flow hedge derivative gains and losses that were recognized in AOCI and the amounts reclassified to earnings during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||||||||||||||
TABLE 112: CASH FLOW HEDGE DERIVATIVE GAINS AND LOSSES RECOGNIZED IN AOCI AND RECLASSIFIED TO EARNINGS | |||||||||||||||||||||||||||||||||||||
FOREIGN EXCHANGE | INTEREST RATE SWAP | INTEREST RATE OPTION | |||||||||||||||||||||||||||||||||||
CONTRACTS | CONTRACTS | CONTRACTS | |||||||||||||||||||||||||||||||||||
(BEFORE TAX) | (BEFORE TAX) | (BEFORE TAX) | |||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Net Gain/(Loss) Recognized | $ | (9.4 | ) | $ | 2.1 | $ | (3.2 | ) | $ | – | $ | – | $ | – | $ | 0.7 | $ | – | $ | – | |||||||||||||||||
in AOCI | |||||||||||||||||||||||||||||||||||||
Net Gain/(Loss) Reclassified from AOCI to Earnings | |||||||||||||||||||||||||||||||||||||
Other Operating Income | 3.3 | (2.1 | ) | (4.6 | ) | – | – | – | – | – | – | ||||||||||||||||||||||||||
Interest Income | – | – | – | – | – | (0.2 | ) | 1.2 | – | – | |||||||||||||||||||||||||||
Other Operating Expense | (0.5 | ) | (2.6 | ) | – | – | – | – | – | – | – | ||||||||||||||||||||||||||
Total | $ | 2.8 | $ | (4.7 | ) | $ | (4.6 | ) | $ | – | $ | – | $ | (0.2 | ) | $ | 1.2 | $ | – | $ | – | ||||||||||||||||
During the year ended December 31, 2012, there were $0.2 million of gains relating to net foreign exchange contract amounts that were reclassified into earnings as a result of the discontinuance of forecasted transactions that were no longer probable of occurring; there were no gains or losses reclassified during the years ended December 31, 2014 and 2013. It is estimated that a net loss of $5.7 million will be reclassified into earnings within the next twelve months relating to cash flow hedges of foreign currency denominated transactions. It is estimated that a net gain of $3.7 million will be reclassified into earnings upon the receipt of interest payments on earning assets within the next twelve months relating to cash flow hedges of available for sale investment securities. | |||||||||||||||||||||||||||||||||||||
Certain foreign exchange contracts and qualifying nonderivative instruments are designated as net investment hedges to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. For net investment hedges, there was $5.3 million of gains from ineffectiveness recorded for these hedges during the year ended December 31, 2012, and no ineffectiveness recorded for these hedges during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||||||
The following table provides net investment hedge gains and losses recognized in AOCI during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||||||
TABLE 113: NET INVESTMENT HEDGE GAINS AND LOSSES RECOGNIZED IN AOCI | |||||||||||||||||||||||||||||||||||||
AMOUNT OF HEDGING | |||||||||||||||||||||||||||||||||||||
INSTRUMENT GAIN/(LOSS) | |||||||||||||||||||||||||||||||||||||
RECOGNIZED IN AOCI | |||||||||||||||||||||||||||||||||||||
(BEFORE TAX) | |||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 127.4 | $ | (101.6 | ) | ||||||||||||||||||||||||||||||||
Sterling Denominated Subordinated Debt | 15.2 | (5.7 | ) | ||||||||||||||||||||||||||||||||||
Total | $ | 142.6 | $ | (107.3 | ) | ||||||||||||||||||||||||||||||||
Derivatives that are not formally designated as hedges under GAAP are entered into for risk management purposes. Foreign exchange contracts are entered into to manage the foreign currency risk of non-U.S.-dollar-denominated assets and liabilities, the net investment in certain non-U.S. affiliates, commercial loans, and forecasted foreign-currency-denominated transactions. Credit default swaps are entered into to manage the credit risk associated with certain loans and loan commitments. The following table identifies the types of risk management derivative instruments not formally designated as hedges and their notional amounts and fair values. | |||||||||||||||||||||||||||||||||||||
TABLE 114: NOTIONAL AND FAIR VALUES OF NON DESIGNATED RISK MANAGEMENT DERIVATIVE INSTRUMENTS | |||||||||||||||||||||||||||||||||||||
DECEMBER 31, 2014 | DECEMBER 31, 2013 | ||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE | ||||||||||||||||||||||||||||||||||||
(In Millions) | NOTIONAL | ASSET | LIABILITY | NOTIONAL | ASSET | LIABILITY | |||||||||||||||||||||||||||||||
VALUE | VALUE | ||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 246.3 | $ | 0.8 | $ | 5.3 | $ | 168.8 | $ | 1 | $ | 1.2 | |||||||||||||||||||||||||
Total | $ | 246.3 | $ | 0.8 | $ | 5.3 | $ | 168.8 | $ | 1 | $ | 1.2 | |||||||||||||||||||||||||
The following table provides the location and amount of gains and losses recorded in the consolidated statement of income for the years ended December 31, 2014, 2013, and 2012 for derivative instruments not formally designated as hedges under GAAP. | |||||||||||||||||||||||||||||||||||||
TABLE 115: LOCATION AND AMOUNT OF GAINS AND LOSSES RECORDED IN INCOME | |||||||||||||||||||||||||||||||||||||
LOCATION OF DERIVATIVE GAIN/ | AMOUNT RECOGNIZED IN INCOME | ||||||||||||||||||||||||||||||||||||
(In Millions) | (LOSS) RECOGNIZED IN INCOME | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Credit Default Swap Contracts | Other Operating Income | $ | — | $ | (0.1 | ) | $ | (2.6 | ) | ||||||||||||||||||||||||||||
Foreign Exchange Contracts | Other Operating Income | (14.3 | ) | (4.0 | ) | 11.3 | |||||||||||||||||||||||||||||||
Total | $ | (14.3 | ) | $ | (4.1 | ) | $ | 8.7 |
Offsetting_of_Assets_and_Liabi
Offsetting of Assets and Liabilities | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Offsetting of Assets and Liabilities | Note 26 – Offsetting of Assets and Liabilities | ||||||||||||||||||||
The following tables provide information regarding the offsetting of derivative assets and of securities purchased under agreements to resell within the consolidated balance sheet as of December 31, 2014 and 2013. | |||||||||||||||||||||
TABLE 116: OFFSETTING OF DERIVATIVE ASSETS AND SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(In Millions) | GROSS | GROSS | NET | GROSS | NET | ||||||||||||||||
RECOGNIZED | AMOUNTS | AMOUNTS | AMOUNTS | AMOUNT(3) | |||||||||||||||||
ASSETS | OFFSET | PRESENTED | NOT OFFSET | ||||||||||||||||||
Derivative Assets(1) | |||||||||||||||||||||
Foreign Exchange Contracts Over the Counter (OTC) | $ | 3,442.80 | $ | 1,889.80 | $ | 1,553.00 | $ | – | $ | 1,553.00 | |||||||||||
Interest Rate Swaps OTC | 183.9 | 32.1 | 151.8 | – | 151.8 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 48.4 | 13.1 | 35.3 | – | 35.3 | ||||||||||||||||
Cross Product Netting Adjustment | – | 6.3 | – | – | – | ||||||||||||||||
Cross Product Collateral Adjustment | – | 315.8 | – | – | – | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 3,675.10 | 2,257.10 | 1,418.00 | – | 1,418.00 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 832.4 | – | 832.4 | – | 832.4 | ||||||||||||||||
Total Derivatives | 4,507.50 | 2,257.10 | 2,250.40 | – | 2,250.40 | ||||||||||||||||
Securities Purchased under Agreements to Resell(2) | $ | 1,000.00 | $ | — | $ | 1,000.00 | $ | 1,000.00 | $ | – | |||||||||||
31-Dec-13 | |||||||||||||||||||||
(In Millions) | GROSS | GROSS | NET | GROSS | NET | ||||||||||||||||
RECOGNIZED | AMOUNTS | AMOUNTS | AMOUNTS | AMOUNT(3) | |||||||||||||||||
ASSETS | OFFSET | PRESENTED | NOT OFFSET | ||||||||||||||||||
Derivative Assets(1) | |||||||||||||||||||||
Foreign Exchange Contracts Over the Counter (OTC) | $ | 2,612.50 | $ | 1,073.30 | $ | 1,539.20 | $ | – | $ | 1,539.20 | |||||||||||
Interest Rate Swaps OTC | 228.8 | 47.5 | 181.3 | – | 181.3 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 9.1 | 9.1 | – | – | – | ||||||||||||||||
Cross Product Netting Adjustment | – | 28.4 | – | – | – | ||||||||||||||||
Cross Product Collateral Adjustment | – | 210.7 | – | – | – | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 2,850.40 | 1,369.00 | 1,481.40 | – | 1,481.40 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 253.2 | – | 253.2 | – | 253.2 | ||||||||||||||||
Total Derivatives | 3,103.60 | 1,369.00 | 1,734.60 | – | 1,734.60 | ||||||||||||||||
Securities Purchased under Agreements to Resell(2) | $ | 500 | $ | – | $ | 500 | $ | 500 | $ | – | |||||||||||
(1) Derivative assets are reported in other assets in the consolidated balance sheet. Other assets (excluding derivative assets) totaled $3,614.7 million and $3,029.4 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
(2) Securities purchased under agreements to resell are reported in federal funds sold and securities purchased under agreements to resell in the consolidated balance sheet. Federal funds sold totaled $62.7 million and $29.6 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
(3) Northern Trust did not possess any cash collateral that was not offset in the consolidated balance sheet that could have been used to offset the net amounts presented in the consolidated balance sheet as of December 31, 2014 and 2013. | |||||||||||||||||||||
The following tables provide information regarding the offsetting of derivative liabilities and of securities sold under agreements to repurchase within the consolidated balance sheet as of December 31, 2014 and 2013. | |||||||||||||||||||||
TABLE 117: OFFSETTING OF DERIVATIVE LIABILITIES AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(In Millions) | GROSS | GROSS | NET | GROSS | NET | ||||||||||||||||
RECOGNIZED | AMOUNTS | AMOUNTS | AMOUNTS | AMOUNT(2) | |||||||||||||||||
LIABILITIES | OFFSET | PRESENTED | NOT OFFSET | ||||||||||||||||||
Derivative Liabilities(1) | |||||||||||||||||||||
Foreign Exchange Contracts OTC | $ | 3,431.00 | $ | 1,889.80 | $ | 1,541.20 | $ | – | $ | 1,541.20 | |||||||||||
Interest Rate Swaps OTC | 118.7 | 32.1 | 86.6 | – | 86.6 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 13.1 | 13.1 | – | – | – | ||||||||||||||||
Cross Product Netting Adjustment | – | 6.3 | – | – | – | ||||||||||||||||
Cross Product Collateral Adjustment | – | 1,232.00 | – | – | – | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 3,562.80 | 3,173.30 | 389.5 | – | 389.5 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 664.5 | – | 664.5 | – | 664.5 | ||||||||||||||||
Total Derivatives | 4,227.30 | 3,173.30 | 1,054.00 | – | 1,054.00 | ||||||||||||||||
Securities Sold under Agreements to Repurchase | $ | 885.1 | $ | – | $ | 885.1 | $ | 885.1 | $ | – | |||||||||||
31-Dec-13 | |||||||||||||||||||||
(In Millions) | GROSS | GROSS | NET | GROSS | NET | ||||||||||||||||
RECOGNIZED | AMOUNTS | AMOUNTS | AMOUNTS | AMOUNT(2) | |||||||||||||||||
LIABILITIES | OFFSET | PRESENTED | NOT OFFSET | ||||||||||||||||||
Derivative Liabilities(1) | |||||||||||||||||||||
Foreign Exchange Contracts OTC | $ | 2,039.00 | $ | 1,073.30 | $ | 965.7 | $ | – | $ | 965.7 | |||||||||||
Interest Rate Swaps OTC | 163.7 | 47.5 | 116.2 | – | 116.2 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 31.5 | 9.1 | 22.4 | – | 22.4 | ||||||||||||||||
Cross Product Netting Adjustment | – | 28.4 | – | – | – | ||||||||||||||||
Cross Product Collateral Adjustment | – | 767.7 | – | – | – | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 2,234.20 | 1,926.00 | 308.2 | – | 308.2 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 866.7 | – | 866.7 | – | 866.7 | ||||||||||||||||
Total Derivatives | 3,100.90 | 1,926.00 | 1,174.90 | – | 1,174.90 | ||||||||||||||||
Securities Sold under Agreements to Repurchase | $ | 917.3 | $ | – | $ | 917.3 | $ | 917.3 | $ | – | |||||||||||
(1) Derivative liabilities are reported in other liabilities in the consolidated balance sheet. Other liabilities (excluding derivative liabilities) totaled $2,794.1 million and $2,338.4 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
(2) Northern Trust did not place any cash collateral with counterparties that was not offset in the consolidated balance sheet that could have been used to offset the net amounts presented in the consolidated balance sheet as of December 31, 2014 and 2013. | |||||||||||||||||||||
All of Northern Trust’s securities sold under agreements to repurchase (repurchase agreements) and securities purchased under agreements to resell (reverse repurchase agreements) involve the transfer of financial assets in exchange for cash subject to a right and obligation to repurchase those assets for an agreed upon amount. In the event of a repurchase failure, the cash or financial assets are available for offset. All of Northern Trust’s repurchase agreements and reverse repurchase agreements are subject to a master netting arrangement, which sets forth the rights and obligations for repurchase and offset. Under the master netting arrangement, Northern Trust is entitled to set off receivables from and collateral placed with a single counterparty against obligations owed to that counterparty. In addition, collateral held by Northern Trust can be offset against receivables from that counterparty. | |||||||||||||||||||||
Derivative asset and liability positions with a single counterparty can be offset against each other in cases where legally enforceable master netting arrangements or similar agreements exist. Derivative assets and liabilities can be further offset by cash collateral received from, and deposited with, the transacting counterparty. The basis for this view is that, upon termination of transactions subject to a master netting arrangement or similar agreement, the individual derivative receivables do not represent resources to which general creditors have rights and individual derivative payables do not represent claims that are equivalent to the claims of general creditors. Effective in the second quarter of 2013, Northern Trust centrally clears certain interest rate derivative instruments as required under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. These transactions are subject to an agreement similar to a master netting arrangement, which has the same rights of offset as described above. |
OffBalanceSheet_Financial_Inst
Off-Balance-Sheet Financial Instruments | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Off-Balance-Sheet Financial Instruments | Note 27 – Off-Balance-Sheet Financial Instruments | ||||||||
Commitments and Letters of Credit. Northern Trust, in the normal course of business, enters into various types of commitments and issues letters of credit to meet the liquidity and credit enhancement needs of its clients. The contractual amounts of these instruments represent the potential credit exposure should the instrument be fully drawn upon and the client default. To control the credit risk associated with entering into commitments and issuing letters of credit, Northern Trust subjects such activities to the same credit quality and monitoring controls as its lending activities. Commitments and letters of credit consist of the following: | |||||||||
Legally Binding Commitments to Extend Credit generally have fixed expiration dates or other termination clauses. Since a significant portion of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future loans or liquidity requirements. | |||||||||
Standby Letters of Credit obligate Northern Trust to meet certain financial obligations of its clients, if, under the contractual terms of the agreement, the clients are unable to do so. These instruments are primarily issued to support public and private financial commitments, including commercial paper, bond financing, initial margin requirements on futures exchanges, and similar transactions. Northern Trust is obligated to meet the entire financial obligation of these agreements and in certain cases is able to recover the amounts paid through recourse against collateral received or other participants. | |||||||||
Commercial Letters of Credit are instruments issued by Northern Trust on behalf of its clients that authorize a third party (the beneficiary) to draw drafts up to a stipulated amount under the specified terms and conditions of the agreement. Commercial letters of credit are issued primarily to facilitate international trade. | |||||||||
The following table shows the contractual amounts of commitments and letters of credit. | |||||||||
TABLE 118: COMMITMENTS AND LETTERS OF CREDIT | DECEMBER 31, | ||||||||
(In Millions) | 2014 | 2013 | |||||||
Legally Binding Commitments to Extend Credit(1) | $ | 35,127.60 | $ | 32,174.80 | |||||
Standby Letters of Credit(2) | 4,468.10 | 4,451.10 | |||||||
Commercial Letters of Credit | 20.8 | 24.8 | |||||||
(1) These amounts exclude $481.4 million and $418.5 million of commitments participated to others at December 31, 2014 and 2013, respectively. | |||||||||
(2) These amounts include $221.4 million and $208.9 million of standby letters of credit secured by cash deposits or participated to others as of December 31, 2014 and 2013, respectively. The weighted average maturity of standby letters of credit was 27 months at December 31, 2014 and 25 months at December 31, 2013. | |||||||||
Other Off-Balance-Sheet Financial Instruments. As part of its securities custody activities and at the direction of its clients, Northern Trust lends securities owned by clients to borrowers who are reviewed and approved by the Northern Trust Counterparty Risk Management Committee. In connection with these activities, Northern Trust has issued indemnifications to certain clients against certain losses that are a direct result of a borrower’s failure to return securities when due, should the value of such securities exceed the value of the collateral required to be posted. Borrowers are required to fully collateralize securities received with cash or marketable securities. As securities are loaned, collateral is maintained at a minimum of 100% of the fair value of the securities plus accrued interest. The collateral is revalued on a daily basis. The amount of securities loaned as of December 31, 2014 and 2013 subject to indemnification was $98.1 billion and $82.7 billion, respectively. Because of the credit quality of the borrowers and the requirement to fully collateralize securities borrowed, management believes that the exposure to credit loss from this activity is not significant and no liability was recorded related to these indemnifications. | |||||||||
The Bank is a participating member of various cash, securities, and foreign exchange clearing and settlement organizations such as The Depository Trust Company in New York. It participates in these organizations on behalf of its clients and on its own behalf as a result of its own activities. A wide variety of cash and securities transactions are settled through these organizations, including those involving obligations of states and political subdivisions, asset-backed securities, commercial paper, dollar placements, and securities issued by the Government National Mortgage Association. | |||||||||
As a result of its participation in cash, securities, and foreign exchange clearing and settlement organizations, the Bank could be responsible for a pro rata share of certain credit-related losses arising out of the clearing activities. The method in which such losses would be shared by the clearing members is stipulated in each clearing organization’s membership agreement. Credit exposure related to these agreements varies from day to day, primarily as a result of fluctuations in the volume of transactions cleared through the organizations. The estimated credit exposure at December 31, 2014, and 2013 was approximately $60 million and $73 million, respectively, based on the membership agreements and clearing volume for those days. Controls related to these clearing transactions are closely monitored by management to protect the assets of Northern Trust and its clients. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2014 | |
Variable Interest Entities | Note 28 – Variable Interest Entities |
Variable Interest Entities (VIEs) are defined within GAAP as entities which either have a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. Investors that finance a VIE through debt or equity interests, or other counterparties that provide other forms of support, such as guarantees, subordinated fee arrangements, or certain types of derivative contracts, are variable interest holders in the entity and the variable interest holder, if any, that has both the power to direct the activities that most significantly impact the entity and a variable interest that could potentially be significant to the entity is deemed to be the VIE’s primary beneficiary and is required to consolidate the VIE. | |
Leveraged Leases. In leveraged leasing transactions, Northern Trust acts as lessor of the underlying asset subject to the lease and typically funds 20-30% of the asset’s cost via an equity ownership in a trust with the remaining 70-80% provided by third party non-recourse debt holders. In such transactions, the trusts, which are VIEs, are created to provide the lessee use of the property with substantially all of the rights and obligations of ownership. The lessee’s maintenance and operation of the leased property has a direct effect on the fair value of the underlying property, and the lessee also has the ability to increase the benefits it can receive and limit the losses it can suffer by the manner in which it uses the property. As a result, Northern Trust has determined that it is not the primary beneficiary of these VIEs given it lacks the power to direct the activities that most significantly impact the economic performance of the VIEs. | |
Northern Trust’s maximum exposure to loss as a result of its involvement with the leveraged lease trust VIEs is limited to the carrying amounts of its leveraged lease investments. As of December 31, 2014 and 2013, the carrying amounts of these investments, which are included in loans and leases in the consolidated balance sheet, were $547.6 million and $671.2 million, respectively. Northern Trust’s funding requirements relative to the VIEs are limited to its invested capital. Northern Trust has no other liquidity arrangements or obligations to purchase assets of the VIEs that would expose Northern Trust to a loss. | |
Tax Credit Structures. Northern Trust invests in qualified affordable housing projects and community development entities (collectively, community development projects) that are designed to generate a return primarily through the realization of tax credits. The community development projects are formed as limited partnerships and LLCs in which Northern Trust invests as a limited partner/investor member through equity contributions. The economic performance of the community development projects, which are VIEs, is subject to the performance of their underlying investment and their ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. Northern Trust has determined that it is not the primary beneficiary of any community development projects as it lacks the power to direct the activities that most significantly impact the economic performance of the underlying investments or to affect their ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. This power is held by the general partners and managing members who exercise full and exclusive control of the operations of the VIEs. | |
Northern Trust’s maximum exposure to loss as a result of its involvement with community development projects is limited to the carrying amounts of its investments, including any undrawn commitments. As of December 31, 2014 and 2013, the carrying amounts of these investments in community development projects that generate tax credits, included in other assets in the consolidated balance sheet, were $208.9 million and $222.3 million, respectively. As of December 31, 2014 and 2013, liabilities related to unfunded commitments on investments in tax credit community development projects, included in other liabilities in the consolidated balance sheet, were $15.6 million and $19.8 million, respectively. Northern Trust’s funding requirements are limited to its invested capital and unfunded commitments for future equity contributions. Northern Trust has no exposure to loss from liquidity arrangements and no obligation to purchase assets of the community development projects. | |
Affordable housing tax credits and other tax benefits attributable to community development projects totaled $58.1 million as of December 31, 2014. | |
Trust Preferred Securities. As discussed in further detail in Note 13 – Floating Rate Capital Debt, in 1997, Northern Trust issued Floating Rate Capital Securities, Series A and Series B, through NTC Capital I and NTC Capital II, respectively, statutory business trusts wholly-owned by the Corporation. The sole assets of the trusts are Subordinated Debentures of the Corporation that have the same interest rates and maturity dates as the corresponding distribution rates and redemption dates of the Floating Rate Capital Securities. NTC Capital I and NTC Capital II are considered VIEs; however, as the sole asset of each trust is a receivable from the Corporation and proceeds to the Corporation from the receivable exceed the Corporation’s investment in the VIEs’ equity shares, the Corporation is not permitted to consolidate the trusts, even though the Corporation owns all of the voting equity shares of the trusts, has fully guaranteed the trusts’ obligations, and has the right to redeem the preferred securities in certain circumstances. Northern Trust recognizes the subordinated debentures on its consolidated balance sheet as long-term liabilities. | |
Investment Funds. Northern Trust acts as asset manager for various funds in which clients of Northern Trust are investors. As an asset manager of funds, the Corporation earns a competitively priced fee that is based on assets managed and varies with each fund’s investment objective. Based on its analysis, Northern Trust has determined that it is not the primary beneficiary of these VIEs under GAAP. |
Pledged_and_Restricted_Assets
Pledged and Restricted Assets | 12 Months Ended |
Dec. 31, 2014 | |
Pledged and Restricted Assets | Note 29 – Pledged and Restricted Assets |
Certain of Northern Trust’s subsidiaries, as required or permitted by law, pledge assets to secure public and trust deposits; repurchase agreements; Federal Home Loan Bank borrowings; and for other purposes, including support for securities settlement, primarily related to client activities, and for potential Federal Reserve Bank discount window borrowings. On December 31, 2014, securities and loans totaling $32.3 billion ($23.1 billion of government sponsored agency and other securities, $122.9 million of obligations of states and political subdivisions, and $9.1 billion of loans), were pledged. Collateral required for these purposes totaled $5.9 billion. Included in the total pledged assets are available for sale securities with a total fair value of $884.8 million which were pledged as collateral for agreements to repurchase securities sold transactions. The secured parties to these transactions have the right to repledge or sell these securities. | |
Northern Trust is not permitted, by contract or custom, to repledge or sell collateral from agreements to resell securities purchased transactions. The total fair value of accepted collateral as of December 31, 2014 was $1.0 billion. There was no repledged or sold collateral as of December 31, 2014. | |
Deposits maintained to meet Federal Reserve Bank reserve requirements averaged $1.3 billion in 2014. |
Restrictions_on_Subsidiary_Div
Restrictions on Subsidiary Dividends and Loans or Advances | 12 Months Ended |
Dec. 31, 2014 | |
Restrictions on Subsidiary Dividends and Loans or Advances | Note 30 – Restrictions on Subsidiary Dividends and Loans or Advances |
Various federal and state statutory provisions limit the amount of dividends the Bank can pay to the Corporation without regulatory approval. Approval of the Federal Reserve Board is required for payment of any dividend by a state-chartered bank that is a member of the Federal Reserve System if the total of all dividends declared by the bank in any calendar year would exceed the total of its retained net income (as defined by regulatory agencies) for that year combined with its retained net income for the preceding two years. In addition, a state member bank may not pay a dividend in an amount greater than its “undivided profits,” as defined, without regulatory and stockholder approval. | |
Under Illinois law, an Illinois state bank, prior to paying a dividend, must carry over to surplus at least one-tenth of its net profits since the date of the declaration of the last preceding dividend, until the bank’s surplus is equal to its capital. In addition, an Illinois state bank may not pay any dividend in an amount greater than its net profits then on hand, after deduction of losses and bad debts (defined as debts due to a state bank on which interest is past due and unpaid for a period of 6 months or more, unless the same are well secured and in the process of collection). | |
The Bank is also prohibited under federal law from paying any dividends if the Bank is undercapitalized or if the payment of the dividends would cause the Bank to become undercapitalized. In addition, the federal regulatory agencies are authorized to prohibit a bank or bank holding company from engaging in an unsafe or unsound banking practice. The payment of dividends could, depending on the financial condition of the Bank, be deemed to constitute an unsafe or unsound practice. The Dodd-Frank Wall Street Reform and Consumer Protection Act and Basel III impose additional restrictions on the ability of banking institutions to pay dividends (e.g., the Corporation must include proposed dividends in the capital plan that it submits to the Federal Reserve Board in connection with the CCAR exercise and such dividends may only be declared if the Federal Reserve Board does not object to the Corporation’s capital plan). | |
Under federal law, financial transactions by the Bank, the Corporation’s insured banking subsidiary, with the Corporation and its affiliates that are in the form of loans or extensions of credit, investments, guarantees, derivative transactions, repurchase agreements, securities lending transactions or purchases of assets, are restricted. Transfers of this kind to the Corporation or a nonbanking subsidiary by the Bank are limited to 10% of the Bank’s capital and surplus with respect to any single affiliate, and to 20% of the Bank’s capital and surplus with all affiliates in the aggregate, and are also subject to certain collateral requirements (in the case of credit transactions) and other restrictions on covered transactions. These transactions, as well as other transactions between the Bank and the Corporation or its affiliates, also must be on terms substantially the same as, or at least as favorable as, those prevailing at the time for comparable transactions with non-affiliated companies or, in the absence of comparable transactions, on terms, or under circumstances, including credit standards, that would be offered to, or would apply to, non-affiliated companies. Other state and federal laws may limit the transfer of funds by the Corporation’s banking subsidiaries to the Corporation and certain of its affiliates. |
Reporting_Segments_and_Related
Reporting Segments and Related Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Reporting Segments and Related Information | Note 31 – Reporting Segments and Related Information | ||||||||||||||||
Northern Trust is organized around its two client-focused reporting segments: C&IS and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business. The revenue and expenses of Asset Management and certain other support functions are allocated fully to C&IS and Wealth Management. Income and expense associated with the Corporation’s and the Bank’s wholesale funding activities and investment portfolios, as well as certain corporate-based expense, executive level compensation and nonrecurring items are not allocated to C&IS and Wealth Management, and are reported in Northern Trust’s third reporting segment, Treasury and Other, in the tables below. | |||||||||||||||||
C&IS and Wealth Management results are presented to promote a greater understanding of their financial performance. The information, presented on an internal management-reporting basis as opposed to GAAP which is used for consolidated financial reporting purposes, derives from internal accounting systems that support Northern Trust’s strategic objectives and management structure. The accounting policies used for management reporting are consistent with those described in Note 1 – Summary of Significant Accounting Policies. | |||||||||||||||||
The following tables show the earnings contribution of Northern Trust’s reporting segments for the years ended December 31, 2014, 2013, and 2012. | |||||||||||||||||
TABLE 119: CORPORATE AND INSTITUTIONAL SERVICES RESULTS OF OPERATIONS | |||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,584.00 | $ | 1,443.80 | $ | 1,334.10 | |||||||||||
Foreign Exchange Trading Income | 200.4 | 238.8 | 193.5 | ||||||||||||||
Other Noninterest Income | 177.9 | 177.3 | 193.6 | ||||||||||||||
Net Interest Income (FTE) (Note) | 310 | 275.9 | 280.1 | ||||||||||||||
Revenue (FTE) (Note) | 2,272.30 | 2,135.80 | 2,001.30 | ||||||||||||||
Provision for Credit Losses | 5.8 | (3.4 | ) | (2.1 | ) | ||||||||||||
Noninterest Expense | 1,732.80 | 1,657.90 | 1,599.90 | ||||||||||||||
Income before Income Taxes (Note) | 533.7 | 481.3 | 403.5 | ||||||||||||||
Provision for Income Taxes (Note) | 149.4 | 145.6 | 114.3 | ||||||||||||||
Net Income | $ | 384.3 | $ | 335.7 | $ | 289.2 | |||||||||||
Percentage of Consolidated Net Income | 47 | % | 46 | % | 42 | % | |||||||||||
Average Assets | $ | 59,462.90 | $ | 53,308.20 | $ | 49,904.00 | |||||||||||
Note: Stated on an FTE basis. | |||||||||||||||||
TABLE 120: WEALTH MANAGEMENT RESULTS OF OPERATIONS | |||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,248.80 | $ | 1,166.00 | $ | 1,071.40 | |||||||||||
Foreign Exchange Trading Income | 9.7 | 5.6 | 12.6 | ||||||||||||||
Other Noninterest Income | 98.3 | 116.7 | 93.6 | ||||||||||||||
Net Interest Income (FTE) (Note) | 536.1 | 557.7 | 629.9 | ||||||||||||||
Revenue (FTE) (Note) | 1,892.90 | 1,846.00 | 1,807.50 | ||||||||||||||
Provision for Credit Losses | 0.2 | 23.4 | 27.1 | ||||||||||||||
Noninterest Expense | 1,268.70 | 1,215.00 | 1,182.30 | ||||||||||||||
Income before Income Taxes (Note) | 624 | 607.6 | 598.1 | ||||||||||||||
Provision for Income Taxes (Note) | 234.8 | 229.2 | 226.4 | ||||||||||||||
Net Income | $ | 389.2 | $ | 378.4 | $ | 371.7 | |||||||||||
Percentage of Consolidated Net Income | 48 | % | 52 | % | 54 | % | |||||||||||
Average Assets | $ | 23,629.30 | $ | 22,887.60 | $ | 23,917.90 | |||||||||||
Note: Stated on an FTE basis. | |||||||||||||||||
TABLE 121: TREASURY AND OTHER RESULTS OF OPERATIONS | |||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||
Noninterest Income | $ | 6.6 | $ | 8 | $ | 7 | |||||||||||
Net Interest Income (FTE) (Note) | 188.8 | 132 | 121.1 | ||||||||||||||
Revenue (FTE) (Note) | 195.4 | 140 | 128.1 | ||||||||||||||
Noninterest Expense | 133.5 | 120.9 | 96.6 | ||||||||||||||
Income before Income Taxes (Note) | 61.9 | 19.1 | 31.5 | ||||||||||||||
Provision (Benefit) for Income Taxes (Note) | 23.6 | 1.9 | 5.1 | ||||||||||||||
Net Income | $ | 38.3 | $ | 17.2 | $ | 26.4 | |||||||||||
Percentage of Consolidated Net Income | 5 | % | 2 | % | 4 | % | |||||||||||
Average Assets | $ | 20,991.30 | $ | 18,661.90 | $ | 19,153.60 | |||||||||||
Note: Stated on an FTE basis. | |||||||||||||||||
TABLE 122: CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 2,832.80 | $ | 2,609.80 | $ | 2,405.50 | |||||||||||
Foreign Exchange Trading Income | 210.1 | 244.4 | 206.1 | ||||||||||||||
Other Noninterest Income | 282.8 | 302 | 294.2 | ||||||||||||||
Net Interest Income (FTE) (Note) | 1,034.90 | 965.6 | 1,031.10 | ||||||||||||||
Revenue (FTE) (Note) | 4,360.60 | 4,121.80 | 3,936.90 | ||||||||||||||
Provision for Credit Losses | 6 | 20 | 25 | ||||||||||||||
Noninterest Expense | 3,135.00 | 2,993.80 | 2,878.80 | ||||||||||||||
Income before Income Taxes (Note) | 1,219.60 | 1,108.00 | 1,033.10 | ||||||||||||||
Provision for Income Taxes (Note) | 407.8 | 376.7 | 345.8 | ||||||||||||||
Net Income | $ | 811.8 | $ | 731.3 | $ | 687.3 | |||||||||||
Average Assets | $ | 104,083.50 | $ | 94,857.70 | $ | 92,975.50 | |||||||||||
Note: Stated on an FTE basis. The consolidated figures include $29.4 million, $32.5 million, and $40.8 million, of FTE adjustments for 2014, 2013, and 2012, respectively. | |||||||||||||||||
Northern Trust’s non-U.S. activities are primarily related to its asset servicing, asset management, foreign exchange, cash management, and commercial banking businesses. The operations of Northern Trust are managed on a reporting segment basis and include components of both U.S and non-U.S. source income and assets. Non-U.S. source income and assets are not separately identified in Northern Trust’s internal management reporting system. However, Northern Trust is required to disclose non-U.S. activities based on the domicile of the customer. Due to the complex and integrated nature of Northern Trust’s activities, it is difficult to segregate with precision revenues, expenses and assets between U.S. and non-U.S.-domiciled customers. Therefore, certain subjective estimates and assumptions have been made to allocate revenues, expenses and assets between U.S. and non-U.S. operations. | |||||||||||||||||
For purposes of this disclosure, all foreign exchange trading income has been allocated to non-U.S. operations. Interest expense is allocated to non-U.S. operations based on specifically matched or pooled funding. Allocations of indirect noninterest expenses related to non-U.S. activities are not significant, but when made, are based on various methods such as time, space, and number of employees. | |||||||||||||||||
The table below summarizes Northern Trust’s performance based on the allocation process described above without regard to guarantors or the location of collateral. | |||||||||||||||||
TABLE 123: DISTRIBUTION OF TOTAL ASSETS AND OPERATING PERFORMANCE | |||||||||||||||||
(In Millions) | TOTAL ASSETS | TOTAL | INCOME BEFORE | NET INCOME | |||||||||||||
REVENUE | INCOME TAXES | ||||||||||||||||
2014 | |||||||||||||||||
Non-U.S. | $ | 28,326.10 | $ | 1,341.80 | $ | 446.5 | $ | 322.7 | |||||||||
U.S. | 81,620.40 | 2,989.40 | 743.7 | 489.1 | |||||||||||||
Total | $ | 109,946.50 | $ | 4,331.20 | $ | 1,190.20 | $ | 811.8 | |||||||||
2013 | |||||||||||||||||
Non-U.S. | $ | 30,241.30 | $ | 1,101.00 | $ | 272.4 | $ | 201.3 | |||||||||
U.S. | 72,706.00 | 2,988.30 | 803.1 | 530 | |||||||||||||
Total | $ | 102,947.30 | $ | 4,089.30 | $ | 1,075.50 | $ | 731.3 | |||||||||
2012 | |||||||||||||||||
Non-U.S. | $ | 29,198.40 | $ | 992.5 | $ | 194.9 | $ | 147.6 | |||||||||
U.S. | 68,265.40 | 2,903.60 | 797.4 | 539.7 | |||||||||||||
Total | $ | 97,463.80 | $ | 3,896.10 | $ | 992.3 | $ | 687.3 | |||||||||
Note: Total revenue is comprised of net interest income and noninterest income. |
Regulatory_Capital_Requirement
Regulatory Capital Requirements | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Regulatory Capital Requirements | Note 32 – Regulatory Capital Requirements | ||||||||||||||||||||||||
Northern Trust and the Bank are subject to various regulatory capital requirements administered by the federal bank regulatory authorities. Under these requirements, banks must maintain specific ratios of total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to adjusted average quarterly assets in order to be classified as “well-capitalized.” The regulatory capital requirements impose certain restrictions upon banks that meet minimum capital requirements but are not “well-capitalized” and obligate the federal bank regulatory authorities to take “prompt corrective action” with respect to banks that do not maintain such minimum ratios. Such prompt corrective action could have a direct material effect on a bank’s financial statements. | |||||||||||||||||||||||||
As of December 31, 2014, and 2013, the Bank had capital ratios above the levels required for classification as a “well-capitalized” institution and had not received any regulatory notification of a lower classification. Additionally, Northern Trust’s subsidiary banks located outside the U.S. are subject to regulatory capital requirements in the jurisdictions in which they operate. As of December 31, 2014, and 2013, Northern Trust’s non-U.S. banking subsidiaries had capital ratios above their specified minimum requirements. There were no conditions or events since December 31, 2014, that management believes have adversely affected the capital categorization of any Northern Trust subsidiary bank. | |||||||||||||||||||||||||
The table below summarizes the risk-based capital amounts and ratios for Northern Trust on a consolidated basis and for the Bank. | |||||||||||||||||||||||||
TABLE 124: RISK-BASED CAPITAL AMOUNTS AND RATIOS | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
($ In Millions) | ADVANCED APPROACH(1) | STANDARDIZED APPROACH(2) | DECEMBER 31, 2013(3) | ||||||||||||||||||||||
BALANCE | RATIO | BALANCE | RATIO | BALANCE | RATIO | ||||||||||||||||||||
Common Equity Tier 1 Capital | |||||||||||||||||||||||||
Northern Trust Corporation | $ | 7,813.30 | 12.4 | % | $ | 7,813.30 | 12.5 | % | $ | 7,853.20 | 12.9 | % | |||||||||||||
The Northern Trust Company | 7,327.30 | 12 | 7,327.30 | 11.8 | 6,765.60 | 11.5 | |||||||||||||||||||
Minimum to qualify as well-capitalized | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||
Tier 1 Capital | |||||||||||||||||||||||||
Northern Trust Corporation | 8,318.00 | 13.2 | 8,317.60 | 13.3 | 7,853.20 | 13.4 | |||||||||||||||||||
The Northern Trust Company | 7,327.30 | 12 | 7,327.30 | 11.8 | 6,765.60 | 11.5 | |||||||||||||||||||
Minimum to qualify as well-capitalized: | |||||||||||||||||||||||||
Northern Trust Corporation | 3,773.80 | 6 | 3,759.10 | 6 | 3,526.40 | 6 | |||||||||||||||||||
The Northern Trust Company | 3,665.80 | 6 | 3,738.00 | 6 | 3,515.20 | 6 | |||||||||||||||||||
Total Capital | |||||||||||||||||||||||||
Northern Trust Corporation | 9,449.20 | 15 | 9,723.00 | 15.5 | 9,294.90 | 15.8 | |||||||||||||||||||
The Northern Trust Company | 8,420.40 | 13.8 | 8,695.10 | 14 | 8,366.20 | 14.3 | |||||||||||||||||||
Minimum to qualify as well-capitalized: | |||||||||||||||||||||||||
Northern Trust Corporation | 6,289.70 | 10 | 6,265.10 | 10 | 5,877.40 | 10 | |||||||||||||||||||
The Northern Trust Company | 6,109.70 | 10 | 6,229.90 | 10 | 5,858.80 | 10 | |||||||||||||||||||
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets) | |||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | 8,317.60 | 7.8 | 7,853.20 | 7.9 | |||||||||||||||||||
The Northern Trust Company | N/A | N/A | 7,327.30 | 6.9 | 6,765.60 | 6.8 | |||||||||||||||||||
Minimum to qualify as well-capitalized: | |||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | 5,340.70 | 5 | 4,953.70 | 5 | |||||||||||||||||||
The Northern Trust Company | N/A | N/A | 5,324.90 | 5 | 4,939.90 | 5 | |||||||||||||||||||
(1) Effective with the second quarter of 2014, Northern Trust exited its parallel run. Accordingly, the December 31, 2014, capital balances and ratios are calculated in compliance with the Basel III Advanced Approach final rules released by the Federal Reserve Board on July 2, 2013. | |||||||||||||||||||||||||
(2) Standardized Approach capital components in 2014 are determined by Basel III phased-in requirements and risk-weighted assets are determined by Basel I requirements. The December 31, 2014, ratios calculated under the Standardized Approach comply with the final rules released by the Federal Reserve Board on July 2, 2013. | |||||||||||||||||||||||||
(3) The December 31, 2013, capital balances and ratios were calculated in accordance with Basel I requirements. | |||||||||||||||||||||||||
As of January 1, 2015, the risk-based capital guidelines that apply to the Corporation and the Bank, commonly referred to as Basel III, are based upon the 2011 capital accord of the (Basel Committee). The Basel III rules are currently being phased in, and will come into full effect by January 1, 2022. | |||||||||||||||||||||||||
Under the final Basel III rules, the Corporation is one of a small number of “core” banking organizations. The rules require core banking organizations to have rigorous processes for assessing overall capital adequacy in relation to their total risk profiles, and to publicly disclose certain information about their risk profiles and capital adequacy. In order to implement the capital rules, a core banking organization, such as the Corporation, is required to satisfactorily complete a parallel run, in which it calculates capital requirements under both the Basel III rules and previously effective regulations. On February 21, 2014, the Corporation was notified by the Federal Reserve Board that both the Corporation and the Bank would be permitted to exit parallel run. Accordingly, the Corporation and the Bank were required to use the advanced approaches methodologies to calculate and publicly disclose their risk-based capital ratios beginning with the second quarter of 2014. The parallel run of the risk-based capital framework demonstrated that the use of the advanced approaches methodologies, inclusive of commitments the Corporation provided to the Federal Reserve Board regarding the Corporation’s approach to the calculation of risk-weighted assets, did not result in the Tier 1 or total risk-based capital ratios falling below the levels required for categorization as “well-capitalized.” | |||||||||||||||||||||||||
The U.S.’s implementation of Basel III has increased the minimum capital thresholds for banking organizations and tightened the standards for what qualifies as capital. The Corporation and the Bank believe their capital strength, balance sheets and business models leave them well positioned for the continued U.S. implementation of Basel III. |
Northern_Trust_Corporation_Cor
Northern Trust Corporation (Corporation only) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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. | |||||||||||||
TABLE 125: CONDENSED BALANCE SHEET | |||||||||||||
DECEMBER 31, | |||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||
ASSETS | |||||||||||||
Cash on Deposit with Subsidiary Bank | $ | 869.4 | $ | 1,566.40 | |||||||||
Time Deposits with Subsidiary Banks | – | – | |||||||||||
Securities | 2.3 | 5.3 | |||||||||||
Advances to Wholly-Owned Subsidiaries – Banks | 2,273.50 | 2,035.00 | |||||||||||
– Nonbank | 5 | 5 | |||||||||||
Investments in Wholly-Owned Subsidiaries – Banks | 7,604.50 | 7,101.70 | |||||||||||
– Nonbank | 123 | 168.5 | |||||||||||
Buildings and Equipment | – | – | |||||||||||
Other Assets | 605.8 | 608.8 | |||||||||||
Total Assets | $ | 11,483.50 | $ | 11,490.70 | |||||||||
LIABILITIES | |||||||||||||
Senior Notes | $ | 1,497.00 | $ | 1,996.60 | |||||||||
Long Term Debt | 793 | 717.8 | |||||||||||
Floating Rate Capital Debt | 277.2 | 277.1 | |||||||||||
Other Liabilities | 467.4 | 587.2 | |||||||||||
Total Liabilities | 3,034.60 | 3,578.70 | |||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||||
Preferred Stock | 388.5 | – | |||||||||||
Common Stock | 408.6 | 408.6 | |||||||||||
Additional Paid-in Capital | 1,050.90 | 1,035.70 | |||||||||||
Retained Earnings | 7,625.40 | 7,134.80 | |||||||||||
Accumulated Other Comprehensive Loss | (319.7 | ) | (244.3 | ) | |||||||||
Treasury Stock | (704.8 | ) | (422.8 | ) | |||||||||
Total Stockholders’ Equity | 8,448.90 | 7,912.00 | |||||||||||
Total Liabilities and Stockholders’ Equity | $ | 11,483.50 | $ | 11,490.70 | |||||||||
TABLE 126: CONDENSED STATEMENT OF INCOME | |||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
OPERATING INCOME | |||||||||||||
Dividends – Bank Subsidiaries | $ | 300 | $ | 880 | $ | 440 | |||||||
– Nonbank Subsidiaries | 3.8 | 21.7 | 26.2 | ||||||||||
Intercompany Interest and Other Charges | 42.9 | 33.2 | 30 | ||||||||||
Interest and Other Income | (0.3 | ) | 9 | 10.6 | |||||||||
Total Operating Income | 346.4 | 943.9 | 506.8 | ||||||||||
OPERATING EXPENSES | |||||||||||||
Interest Expense | 66.6 | 78.3 | 74.9 | ||||||||||
Other Operating Expenses | 17 | 20.8 | 13 | ||||||||||
Total Operating Expenses | 83.6 | 99.1 | 87.9 | ||||||||||
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries | 262.8 | 844.8 | 418.9 | ||||||||||
Benefit for Income Taxes | 16.6 | 24.2 | 21.1 | ||||||||||
Income before Equity in Undistributed Net Income of Subsidiaries | 279.4 | 869 | 440 | ||||||||||
Equity in Undistributed Net Income of Subsidiaries – Banks | 522.1 | (152.5 | ) | 266.9 | |||||||||
– Nonbank | 10.3 | 14.8 | (19.6 | ) | |||||||||
Net Income | $ | 811.8 | $ | 731.3 | $ | 687.3 | |||||||
Preferred Stock Dividends | 9.5 | – | – | ||||||||||
Net Income Applicable to Common Stock | $ | 802.3 | $ | 731.3 | $ | 687.3 | |||||||
TABLE 127: CONDENSED STATEMENT OF CASH FLOWS | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
OPERATING ACTIVITIES: | |||||||||||||
Net Income | $ | 811.8 | $ | 731.3 | $ | 687.3 | |||||||
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities: | |||||||||||||
Equity in Undistributed Net Income of Subsidiaries | (532.4 | ) | 131 | (247.3 | ) | ||||||||
Change in Prepaid Expenses | 0.2 | (1.1 | ) | (0.9 | ) | ||||||||
Change in Accrued Income Taxes | (30.7 | ) | (18.1 | ) | 34.7 | ||||||||
Other, net | 56.1 | 102.6 | (36.0 | ) | |||||||||
Net Cash Provided by Operating Activities | 305 | 945.7 | 437.8 | ||||||||||
INVESTING ACTIVITIES: | |||||||||||||
Change in Time Deposits with Banks | – | 1,691.40 | (422.2 | ) | |||||||||
Purchases of Securities – Available for Sale | – | – | (0.4 | ) | |||||||||
Proceeds from Sale, Maturity and Redemption of Securities – Available for Sale | 2.9 | 0.2 | 94.3 | ||||||||||
Change in Capital Investments in Subsidiaries | – | (13.0 | ) | 0.3 | |||||||||
Advances to Wholly-Owned Subsidiaries | (238.5 | ) | (1,000.0 | ) | – | ||||||||
Other, net | 1.1 | 1.8 | – | ||||||||||
Net Cash Provided by (Used in) Investing Activities | (234.5 | ) | 680.4 | (328.0 | ) | ||||||||
FINANCING ACTIVITIES: | |||||||||||||
Change in Senior Notes and Long-Term Debt | (500.0 | ) | 317.9 | 300 | |||||||||
Proceeds from Issuance of Preferred Stock – Series C | 388.5 | – | – | ||||||||||
Treasury Stock Purchased | (480.7 | ) | (309.7 | ) | (162.4 | ) | |||||||
Net Proceeds from Stock Options | 127.5 | 146.2 | 106.8 | ||||||||||
Cash Dividends Paid on Common Stock | (302.9 | ) | (220.6 | ) | (354.3 | ) | |||||||
Other, net | 0.1 | – | 0.1 | ||||||||||
Net Cash Used in Financing Activities | (767.5 | ) | (66.2 | ) | (109.8 | ) | |||||||
Net Change in Cash on Deposit with Subsidiary Bank | (697.0 | ) | 1,559.90 | – | |||||||||
Cash on Deposit with Subsidiary Bank at Beginning of Year | 1,566.40 | 6.5 | 6.5 | ||||||||||
Cash on Deposit with Subsidiary Bank at End of Year | $ | 869.4 | $ | 1,566.40 | $ | 6.5 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Basis of Presentation | A. Basis of Presentation. The consolidated financial statements include the accounts of Northern Trust Corporation (Corporation) and its wholly-owned subsidiary, The Northern Trust Company (Bank), and various other wholly-owned subsidiaries of the Corporation and Bank. Throughout the notes, the term “Northern Trust” refers to the Corporation and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Certain prior-year balances have been reclassified consistent with the current-year’s presentation. |
Nature of Operations | B. Nature of Operations. The Corporation is a bank holding company that has elected to be a financial holding company under the Bank Holding Company Act of 1956, as amended. The Bank is an Illinois banking corporation headquartered in Chicago and the Corporation’s principal subsidiary. The Corporation conducts business in the United States (U.S.) and internationally through various U.S. and non-U.S. subsidiaries, including the Bank. |
Northern Trust generates the majority of its revenue from its two client-focused reporting segments: Corporate & Institutional Services (C&IS) and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business. | |
C&IS is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities including but not limited to: global master trust and custody; employee benefit services, fund administration; investment operations outsourcing; investment risk and analytical services; securities lending; foreign exchange; banking; cash management; treasury management; brokerage services; and transition management services. Client relationships are managed through the Bank and the Bank’s and the Corporation’s other subsidiaries, including support from locations in North America, Europe, the Middle East, and the Asia Pacific region. | |
Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses in its target markets. Wealth Management also includes the Global Family Office, which provides customized services to meet the complex financial needs of individuals and family offices in the United States and throughout the world with assets typically exceeding $200 million. Wealth Management services are delivered by multidisciplinary teams through a network of offices in 18 U.S. states and Washington, D.C., as well as offices in London, Guernsey, and Abu Dhabi. | |
Use of Estimates in the Preparation of Financial Statements | C. Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. |
Foreign Currency Remeasurement and Translation | D. Foreign Currency Remeasurement and Translation. Asset and liability accounts denominated in nonfunctional currencies are remeasured into functional currencies at period end rates of exchange, except for certain balance sheet items including buildings and equipment, goodwill and other intangible assets, which are remeasured at historical exchange rates. Results from remeasurement of asset and liability accounts are reported in other operating income as currency translation gains (losses), net. Income and expense accounts are remeasured at period average rates of exchange. |
Asset and liability accounts of entities with functional currencies that are not the U.S. dollar are translated at period end rates of exchange. Income and expense accounts are translated at period average rates of exchange. Translation adjustments, net of applicable taxes, are reported directly to accumulated other comprehensive income (AOCI), a component of stockholders’ equity. | |
Securities | E. Securities. Securities Available for Sale are reported at fair value, with unrealized gains and losses credited or charged, net of the tax effect, to AOCI. Realized gains and losses on securities available for sale are determined on a specific identification basis and are reported within other security gains (losses), net, in the consolidated statement of income. Interest income is recorded on the accrual basis, adjusted for the amortization of premium and accretion of discount. |
Securities Held to Maturity consist of debt securities that management intends to, and Northern Trust has the ability to, hold until maturity. Such securities are reported at cost, adjusted for amortization of premium and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and accretion of discount. | |
Securities Held for Trading are stated at fair value. Realized and unrealized gains and losses on securities held for trading are reported in the consolidated statement of income within security commissions and trading income. | |
Nonmarketable Securities primarily consist of Federal Reserve and Federal Home Loan Bank stock and community development investments, each of which are recorded in other assets on the consolidated balance sheet. Federal Reserve and Federal Home Loan Bank stock are reported at cost, which represents redemption value. Community development investments, are typically reported at amortized cost. Those community development investments that are designed to generate a return primarily through realization of tax credits and other tax benefits, which are discussed in further detail in Note 28 – Variable Interest Entities, are reported at amortized cost using the effective yield method or proportional amortization method and amortized over the lives of the related tax credits and other tax benefits. | |
Other-Than-Temporary Impairment (OTTI). A security is considered to be other-than-temporarily impaired if the present value of cash flows expected to be collected are less than the security’s amortized cost basis (the difference being defined as the credit loss) or if the fair value of the security is less than the security’s amortized cost basis and the investor intends, or more-likely-than-not will be required, to sell the security before recovery of the security’s amortized cost basis. If OTTI exists, the charge to earnings is limited to the amount of credit loss if the investor does not intend to sell the security, and it is more-likely-than-not that it will not be required to sell the security, before recovery of the security’s amortized cost basis. Any remaining difference between fair value and amortized cost is recognized in AOCI, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost is charged to earnings. | |
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | F. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase. Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third party custodians, of securities purchased under agreements to resell. |
Derivative Financial Instruments | G. Derivative Financial Instruments. Northern Trust is a party to various derivative instruments that are used in the normal course of business to meet the needs of its clients; as part of its trading activity for its own account; and as part of its risk management activities. These instruments include foreign exchange contracts, interest rate contracts, and credit default swap contracts. Derivative financial instruments are recorded on the consolidated balance sheet at fair value within other assets and other liabilities. Derivative asset and liability positions with the same counterparty are reflected on a net basis on the consolidated balance sheet in cases where legally enforceable master netting arrangements or similar agreements exist. Derivative assets and liabilities are further reduced by cash collateral received from, and deposited with, derivative counterparties. The accounting for changes in the fair value of a derivative in the consolidated statement of income depends on whether or not the contract has been designated as a hedge and qualifies for hedge accounting under GAAP. Derivative financial instruments are recorded on the consolidated cash flow statement within the line item, ‘other operating activities, net,’ except for net investment hedges which are recorded within ‘other investing activities, net’. |
Changes in the fair value of client-related and trading derivative instruments, which are not designated hedges under GAAP, are recognized currently in either foreign exchange trading income or security commissions and trading income. Changes in the fair value of derivative instruments entered into for risk management purposes but not designated as hedges are recognized currently in other operating income. Certain derivative instruments used by Northern Trust to manage risk are formally designated and qualify for hedge accounting as fair value, cash flow, or net investment hedges. | |
Derivatives designated as fair value hedges are used to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates. Changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recognized currently in income. For substantially all fair value hedges, Northern Trust applies the “shortcut” method of accounting, available under GAAP, which assumes there is no ineffectiveness in a hedge. As a result, changes recorded in the fair value of the hedged item are equal to the offsetting gain or loss on the derivative and are reflected in the same line item. For fair value hedges that do not qualify for the “shortcut” method of accounting, Northern Trust utilizes regression analysis, a “long-haul” method of accounting, in assessing whether these hedging relationships are highly effective at inception and quarterly thereafter. Ineffectiveness resulting from fair value hedges is recorded in either interest income or interest expense. | |
Derivatives designated as cash flow hedges are used to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates. The effective portion of changes in the fair value of such derivatives is recognized in AOCI, a component of stockholders’ equity, and there is no change to the accounting for the hedged item. Balances in AOCI are reclassified to earnings when the hedged forecasted transaction impacts earnings. Northern Trust applies the “shortcut” method of accounting for cash flow hedges of certain available for sale investment securities. For cash flow hedges of certain other available for sale investment securities and forecasted foreign currency denominated revenue and expenditure transactions, Northern Trust closely matches all terms of the hedged item and hedging derivative at inception and on an ongoing basis which limits hedge ineffectiveness. For cash flow hedges of available for sale investment securities, to the extent all terms are not perfectly matched, effectiveness is assessed using regression analysis and any ineffectiveness is measured using the hypothetical derivative method. For cash flow hedges of forecasted foreign currency denominated revenue and expenditure transactions, to the extent all terms are not perfectly matched, effectiveness is assessed using the dollar-offset method and any ineffectiveness is measured using the hypothetical derivative method. Any ineffectiveness is recognized currently in earnings. | |
Foreign exchange contracts and qualifying non-derivative instruments designated as net investment hedges are used to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. The effective portion of changes in the fair value of the hedging instrument is recognized in AOCI consistent with the related translation gains and losses of the hedged net investment. For net investment hedges, all critical terms of the hedged item and the hedging instrument are matched at inception and on an ongoing basis to minimize the risk of hedge ineffectiveness. To the extent all terms are not perfectly matched, any ineffectiveness is measured using the hypothetical derivative method. Ineffectiveness resulting from net investment hedges is recorded in other operating income. Amounts recorded in AOCI are reclassified to earnings only upon the sale or liquidation of an investment in a non-U.S. branch or subsidiary. | |
Fair value, cash flow, and net investment hedges are designated and formally documented as such contemporaneous with the transaction. The formal documentation describes the hedge relationship and identifies the hedging instruments and hedged items. Included in the documentation is a discussion of the risk management objectives and strategies for undertaking such hedges, the nature of the risk being hedged, a description of the method for assessing hedge effectiveness at inception and on an ongoing basis, as well as the method that will be used to measure hedge ineffectiveness. For hedges that do not qualify for the “shortcut” or the critical terms match methods of accounting, a formal assessment is performed on a calendar quarter basis to verify that derivatives used in hedging transactions continue to be highly effective in offsetting the changes in fair value or cash flows of the hedged item. Hedge accounting is discontinued if a derivative ceases to be highly effective, matures, is terminated or sold, if a hedged forecasted transaction is no longer expected to occur, or if Northern Trust removes the derivative’s hedge designation. Subsequent gains and losses on these derivatives are included in foreign exchange trading income or security commissions and trading income. For discontinued cash flow hedges, the accumulated gain or loss on the derivative remains in AOCI and is reclassified to earnings in the period in which the previously hedged forecasted transaction impacts earnings or is no longer probable of occurring. For discontinued fair value hedges, the previously hedged asset or liability ceases to be adjusted for changes in its fair value. Previous adjustments to the hedged item are amortized over the remaining life of the hedged item. | |
Loans and Leases | H. Loans and Leases. Loans and leases are recognized assets that represent a contractual right to receive money either on demand or on fixed or determinable dates. Loans and leases are disaggregated for disclosure purposes by portfolio segment (segment) and by class. Segment is defined as the level at which management develops and documents a systematic methodology to determine the allowance for credit losses. Northern Trust has defined its segments as commercial and personal. A class of loans and leases is a subset of a segment, the components of which have similar risk characteristics, measurement attributes, or risk monitoring methods. The classes within the commercial segment have been defined as commercial and institutional, commercial real estate, lease financing, non-US and other. The classes within the personal segment have been defined as residential real estate, private client and other. |
Loan Classification. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income. Loans classified as held for sale are reported at the lower of aggregate cost or fair value. Loan commitments for residential real estate loans that will be classified as held for sale at the time of funding and which have an interest rate lock are recorded on the balance sheet at fair value with subsequent gains or losses recognized in other operating income. Unrealized gains on these loan commitments are reported as other assets, with unrealized losses reported as other liabilities. Other undrawn commitments relating to loans that are not held for sale are recorded in other liabilities and are carried at the amount of unamortized fees with an allowance for credit loss liability recognized for any estimated probable losses. | |
Recognition of Income. Interest income on loans is recorded on an accrual basis unless, in the opinion of management, there is a question as to the ability of the debtor to meet the terms of the loan agreement, or interest or principal is more than 90 days contractually past due and the loan is not well-secured and in the process of collection. Loans meeting such criteria are classified as nonperforming and interest income is recorded on a cash basis. Past due status is based on how long since the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans that are 29 days past due or less are reported as current. At the time a loan is determined to be nonperforming, interest accrued but not collected is reversed against interest income in the current period. Interest collected on nonperforming loans is applied to principal unless, in the opinion of management, collectability of principal is not in doubt. Management’s assessment of indicators of loan and lease collectability, and its policies relative to the recognition of interest income, including the suspension and subsequent resumption of income recognition, do not meaningfully vary between loan and lease classes. Nonperforming loans are returned to performing status when factors indicating doubtful collectability no longer exist. Factors considered in returning a loan to performing status are consistent across all classes of loans and leases and, in accordance with regulatory guidance, relate primarily to expected payment performance. Loans are eligible to be returned to performing status when: (i) no principal or interest that is due is unpaid and repayment of the remaining contractual principal and interest is expected or (ii) the loan has otherwise become well-secured (possessing realizable value sufficient to discharge the debt, including accrued interest, in full) and is in the process of collection (through action reasonably expected to result in debt repayment or restoration to a current status in the near future). A loan that has not been brought fully current may be restored to performing status provided there has been a sustained period of repayment performance (generally a minimum of six months) by the borrower in accordance with the contractual terms, and Northern Trust is reasonably assured of repayment within a reasonable period of time. Additionally, a loan that has been formally restructured so as to be reasonably assured of repayment and performance according to its modified terms may be returned to accrual status, provided there was a well-documented credit evaluation of the borrower’s financial condition and prospects of repayment under the revised terms, and there has been a sustained period of repayment performance (generally a minimum of six months) under the revised terms. | |
Impaired Loans. A loan is considered to be impaired when, based on current information and events, management determines that it is probable that Northern Trust will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans are identified through ongoing credit management and risk rating processes, including the formal review of past due and watch list credits. Payment performance and delinquency status are critical factors in identifying impairment for all loans and leases, particularly those within the residential real estate, private client and personal-other classes. Other key factors considered in identifying impairment of loans and leases within the commercial and institutional, non-U.S., lease financing, and commercial-other classes relate to the borrower’s ability to perform under the terms of the obligation as measured through the assessment of future cash flows, including consideration of collateral value, market value, and other factors. A loan is also considered to be impaired if its terms have been modified as a concession by Northern Trust or a bankruptcy court resulting from the debtor’s financial difficulties, referred to as a troubled debt restructuring (TDR). All TDRs are reported as impaired loans in the calendar year of their restructuring. In subsequent years, a TDR may cease being reported as impaired if the loan was modified at a market rate and has performed according to the modified terms for at least six months. A loan that has been modified at a below market rate will return to performing status if it satisfies the six month performance requirement; however, it will remain reported as impaired. Impairment is measured based upon the loan’s market price, the present value of expected future cash flows, discounted at the loan’s original effective interest rate, or at the fair value of the collateral if the loan is collateral dependent. If the loan valuation is less than the recorded value of the loan, based on the certainty of loss, either a specific allowance is established, or a charge-off is recorded, for the difference. Smaller balance (individually less than $250,000) homogeneous loans are collectively evaluated for impairment and excluded from impaired loan disclosures as allowed under applicable accounting standards. Northern Trust’s accounting policies for impaired loans is consistent across all classes of loans and leases. | |
Premiums and Discounts. Premiums and discounts on loans are recognized as an adjustment of yield using the interest method based on the contractual terms of the loan. Certain direct origination costs and fees are netted, deferred and amortized over the life of the related loan as an adjustment to the loan’s yield. | |
Direct Financing and Leverage Leases. Unearned lease income from direct financing and leveraged leases is recognized using the interest method. This method provides a constant rate of return on the unrecovered investment over the life of the lease. The rate of return and the allocation of income over the lease term are recalculated from the inception of the lease if during the lease term assumptions regarding the amount or timing of estimated cash flows change. Lease residual values are established at the inception of the lease based on in-house valuations and market analyses provided by outside parties. Lease residual values are reviewed at least annually for OTTI. A decline in the estimated residual value of a leased asset determined to be other-than-temporary would be recorded in the period in which the decline is identified as a reduction of interest income. | |
Allowance for Credit Losses | I. Allowance for Credit Losses. The allowance for credit losses represents management’s estimate of probable losses which have occurred as of the date of the consolidated financial statements. The loan and lease portfolio and other lending-related credit exposures are regularly reviewed to evaluate the level of the allowance for credit losses. In determining an appropriate allowance level, Northern Trust evaluates the allowance necessary for impaired loans and lending-related commitments and also estimates losses inherent in other lending-related credit exposures. The allowance for credit losses consists of the following components: |
Specific Allowance. The amount of specific allowance is determined through an individual evaluation of loans and lending-related commitments considered impaired that is based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay. For impaired loans where the amount of specific allowance, if any, is determined based on the value of the underlying real estate collateral, third-party appraisals are typically obtained and utilized by management. These appraisals are generally less than twelve months old and are subject to adjustments to reflect management’s judgment as to the realizable value of the collateral. | |
Inherent Allowance. The amount of inherent allowance is based on factors which incorporate management’s evaluation of historical charge-off experience and various qualitative factors such as management’s evaluation of economic and business conditions and changes in the character and size of the loan portfolio. Factors are applied to loan and lease credit exposures aggregated by shared risk characteristics and are reviewed quarterly by Northern Trust’s Loan Loss Reserve Committee which includes representatives from Credit Risk Management, reporting segment management and Corporate Financial Management. | |
Loans, leases and other extensions of credit deemed uncollectible are charged to the allowance for credit losses. Subsequent recoveries, if any, are credited to the allowance. Northern Trust’s policies relative to the charging-off of uncollectible loans and leases are consistent across both loan and lease segments. Determinations as to whether loan balances for which the collectability is in question are charged-off or a specific reserve is established are based on management’s assessment as to the level of certainty regarding the amount of loss. The provision for credit losses, which is charged to income, is the amount necessary to adjust the allowance for credit losses to the level determined to be appropriate through the above process. Actual losses may vary from current estimates and the amount of the provision for credit losses may be either greater than or less than actual net charge-offs. | |
Northern Trust analyzes its exposure to credit losses from both on-balance-sheet and off-balance-sheet activity using a consistent methodology. In estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, management uses conversion rates to determine the estimated amount that will be funded. Factors based on historical loss experience and specific risk characteristics of the loan product are utilized to calculate inherent losses related to undrawn commitments and standby letters of credit as of the reporting date. The portion of the allowance assigned to loans and leases is reported as a contra asset, directly following loans and leases in the consolidated balance sheet. | |
The portion of the allowance assigned to undrawn loan commitments and standby letters of credit is reported in other liabilities in the consolidated balance sheet. | |
Standby Letters of Credit | J. Standby Letters of Credit. Fees on standby letters of credit are recognized in other operating income using the straight-line method over the lives of the underlying agreements. Northern Trust’s recorded other liability for standby letters of credit, reflecting the obligation it has undertaken, is measured as the amount of unamortized fees on these instruments. |
Buildings and Equipment | K. Buildings and Equipment. Buildings and equipment owned are carried at original cost less accumulated depreciation. The charge for depreciation is computed using the straight-line method based on the following range of lives: buildings – up to 30 years; equipment – 3 to 10 years; and leasehold improvements–the shorter of the lease term or 15 years. Leased properties meeting certain criteria are capitalized and amortized using the straight-line method over the lease period. |
Other Real Estate Owned (OREO) | L. Other Real Estate Owned (OREO). OREO is comprised of commercial and residential real estate properties acquired in partial or total satisfaction of loans. OREO assets are carried at the lower of cost or fair value less estimated costs to sell and are recorded in other assets in the consolidated balance sheet. Fair value is typically based on third-party appraisals. Appraisals of OREO properties are updated on an annual basis and are subject to adjustments to reflect management’s judgment as to the realizable value of the properties. Losses identified during the 90-day period after the acquisition of such properties are charged against the allowance for credit losses assigned to loans and leases. Subsequent write-downs that may be required to the carrying value of these assets and gains or losses realized from asset sales are recorded within other operating expense. |
Goodwill and Other Intangible Assets | M. Goodwill and Other Intangible Assets. Goodwill is not subject to amortization. Separately identifiable acquired intangible assets with finite lives are amortized over their estimated useful lives, primarily on a straight-line basis. Purchased software and allowable internal costs, including compensation relating to software developed for internal use, are capitalized. Software is amortized using the straight-line method over the estimated useful lives of the assets, generally ranging from 3 to 10 years. |
Goodwill and other intangible assets are reviewed for impairment on an annual basis or more frequently if events or changes in circumstances indicate the carrying amounts may not be recoverable. | |
Assets Under Custody and Assets Under Management | N. Assets Under Custody and Assets Under Management. Assets held in fiduciary or agency capacities are not included on the consolidated balance sheet, since such items are not assets of Northern Trust. |
Trust, Investment and Other Servicing Fees | O. Trust, Investment and Other Servicing Fees. Trust, investment and other servicing fees are recorded on the accrual basis, over the period in which the service is provided. Fees are a function of the market value of assets custodied, managed and serviced, the volume of transactions, securities lending volume and spreads, and fees for other services rendered, as set forth in the underlying client agreement. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on estimated asset valuations and transaction volumes. |
Client reimbursed out-of-pocket expenses that are an extension of existing services that are being rendered are recorded on a gross basis as revenue. | |
Client Security Settlement Receivables | P. Client Security Settlement Receivables. These receivables result from custody client withdrawals from short-term investment funds that settle on the following business day. Northern Trust advances cash to the client on the date of the client withdrawal and awaits collection from the short-term investment funds the following business day. |
Income Taxes | Q. Income Taxes. Northern Trust follows an asset and liability approach to account for income taxes. The objective is to recognize the amount of taxes payable or refundable for the current year, and to recognize deferred tax assets and liabilities resulting from temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates. |
Tax positions taken or expected to be taken on a tax return are evaluated based on their likelihood of being sustained upon examination by tax authorities. Only tax positions that are considered more-likely-than-not to be sustained are recorded in the consolidated financial statements. Northern Trust recognizes any interest and penalties related to unrecognized tax benefits in the provision for income taxes. | |
Cash Flow Statements | R. Cash Flow Statements. Cash and cash equivalents have been defined as “Cash and Due from Banks”. |
Pension and Other Postretirement Benefits | S. Pension and Other Postretirement Benefits. Northern Trust records the funded status of its defined benefit pension and other postretirement plans on the consolidated balance sheet. Prepaid pension and postretirement benefits are reported in other assets and unfunded pension and postretirement benefits are reported in other liabilities. Plan assets and benefit obligations are measured annually at December 31. Pension costs are recognized ratably over the estimated working lifetime of eligible participants. |
Share-Based Compensation Plans | T. Share-Based Compensation Plans. Northern Trust recognizes as compensation expense the grant-date fair value of stock and stock unit awards and other share-based compensation granted to employees within the consolidated income statement. The fair values of stock and stock unit awards, including performance stock unit awards and director awards, are based on the price of the Corporation’s stock on the date of grant. The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The model utilizes weighted-average assumptions regarding the period of time that options granted are expected to be outstanding (expected term) based primarily on the historical exercise behavior attributable to previous option grants, the estimated yield from dividends paid on the Corporation’s stock over the expected term of the options, the historical volatility of Northern Trust’s stock price and the implied volatility of traded options on Northern Trust stock, and a risk free interest rate based on the U.S. Treasury yield curve at the time of grant for a period equal to the expected term of the options granted. |
Compensation expense for share-based award grants with terms that provide for a graded vesting schedule, whereby portions of the award vest in increments over the requisite service period, are recognized on a straight-line basis over the requisite service period for the entire award. Northern Trust does not include an estimate of future forfeitures in its recognition of share-based compensation expense as historical forfeitures have not been significant. Share-based compensation expense is adjusted based on forfeitures as they occur. Dividend equivalents are paid on stock units that have been granted but not yet vested. Cash flows resulting from the realization of tax deductions from the exercise of stock options in excess of the compensation cost recognized (excess tax benefits) are classified as financing cash flows. | |
Net Income Per Common Share | U. Net Income Per Common Share. Basic net income per common share is computed by dividing net income/loss applicable to common stock by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income applicable to common stock and potential common shares by the aggregate of the weighted average number of common shares outstanding during the period and common share equivalents calculated for stock options and restricted stock outstanding using the treasury stock method. In a period of a net loss, diluted net income per common share is calculated in the same manner as basic net income per common share. |
Northern Trust has issued certain restricted stock awards, which are unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents. These restricted shares are considered participating securities. Accordingly, Northern Trust calculates net income applicable to common stock using the two-class method, whereby net income is allocated between common stock and participating securities. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis Segregated by Fair Value Hierarchy Level | The following presents assets and liabilities measured at fair value on a recurring basis as of December 31, 2014, and 2013, segregated by fair value hierarchy level. | ||||||||||||||||||||
TABLE 42: RECURRING BASIS HIERARCHY LEVELING | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | NETTING | ASSETS/ | ||||||||||||||||
LIABILITIES | |||||||||||||||||||||
AT FAIR | |||||||||||||||||||||
VALUE | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale | |||||||||||||||||||||
U.S. Government | $ | 4,506.90 | $ | – | $ | – | $ | – | $ | 4,506.90 | |||||||||||
Obligations of States and Political Subdivisions | – | 4.6 | – | – | 4.6 | ||||||||||||||||
Government Sponsored Agency | – | 16,389.20 | – | – | 16,389.20 | ||||||||||||||||
Non-U.S. Government | – | 310.4 | – | – | 310.4 | ||||||||||||||||
Corporate Debt | – | 3,577.70 | – | – | 3,577.70 | ||||||||||||||||
Covered Bonds | – | 1,907.50 | – | – | 1,907.50 | ||||||||||||||||
Supranational and Non-U.S. Agency Bonds | – | 360.6 | – | – | 360.6 | ||||||||||||||||
Residential Mortgage-Backed | – | 6.4 | – | – | 6.4 | ||||||||||||||||
Other Asset-Backed | – | 2,321.30 | – | – | 2,321.30 | ||||||||||||||||
Auction Rate | – | – | 18.1 | – | 18.1 | ||||||||||||||||
Other | – | 155.8 | – | – | 155.8 | ||||||||||||||||
Total Available for Sale | 4,506.90 | 25,033.50 | 18.1 | – | 29,558.50 | ||||||||||||||||
Trading Account | – | 4.7 | – | – | 4.7 | ||||||||||||||||
Total Available for Sale and Trading Securities | 4,506.90 | 25,038.20 | 18.1 | – | 29,563.20 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||
Foreign Exchange Contracts | – | 4,275.20 | – | – | 4,275.20 | ||||||||||||||||
Interest Rate Contracts | – | 232.3 | – | – | 232.3 | ||||||||||||||||
Total Derivative Assets | – | 4,507.50 | – | (2,257.1 | ) | 2,250.40 | |||||||||||||||
Other Liabilities | |||||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||
Foreign Exchange Contracts | – | 4,095.50 | – | – | 4,095.50 | ||||||||||||||||
Interest Rate Swaps | – | 131.8 | – | – | 131.8 | ||||||||||||||||
Total Derivative Liabilities | $ | – | $ | 4,227.30 | $ | – | $ | (3,173.3 | ) | $ | 1,054.00 | ||||||||||
Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2014, derivative assets and liabilities shown above also include reductions of $315.8 million and $1.2 billion, respectively, as a result of cash collateral received from and deposited with derivative counterparties. | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | NETTING | ASSETS/ | ||||||||||||||||
LIABILITIES | |||||||||||||||||||||
AT FAIR | |||||||||||||||||||||
VALUE | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale | |||||||||||||||||||||
U.S. Government | $ | 1,917.90 | $ | – | $ | – | $ | – | $ | 1,917.90 | |||||||||||
Obligations of States and Political Subdivisions | – | 4.6 | – | – | 4.6 | ||||||||||||||||
Government Sponsored Agency | – | 17,528.00 | – | – | 17,528.00 | ||||||||||||||||
Non-U.S. Government | – | 310.6 | – | – | 310.6 | ||||||||||||||||
Corporate Debt | – | 3,524.50 | – | – | 3,524.50 | ||||||||||||||||
Covered Bonds | – | 1,943.90 | – | – | 1,943.90 | ||||||||||||||||
Supranational and Non-U.S. Agency Bonds | – | 410 | – | – | 410 | ||||||||||||||||
Residential Mortgage-Backed | – | 48.1 | – | – | 48.1 | ||||||||||||||||
Other Asset-Backed | – | 2,391.80 | – | – | 2,391.80 | ||||||||||||||||
Auction Rate | – | – | 98.9 | – | 98.9 | ||||||||||||||||
Other | – | 214.5 | – | – | 214.5 | ||||||||||||||||
Total Available for Sale | 1,917.90 | 26,376.00 | 98.9 | – | 28,392.80 | ||||||||||||||||
Trading Account | – | 1.7 | – | – | 1.7 | ||||||||||||||||
Total Available for Sale and Trading Securities | 1,917.90 | 26,377.70 | 98.9 | – | 28,394.50 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||
Foreign Exchange Contracts | – | 2,865.70 | – | – | 2,865.70 | ||||||||||||||||
Interest Rate Swaps | – | 237.9 | – | – | 237.9 | ||||||||||||||||
Total Derivatives Assets | – | 3,103.60 | – | (1,369.0 | ) | 1,734.60 | |||||||||||||||
Other Liabilities | |||||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||
Foreign Exchange Contracts | – | 2,905.70 | – | – | 2,905.70 | ||||||||||||||||
Interest Rate Swaps | – | 195.2 | – | – | 195.2 | ||||||||||||||||
Credit Default Swaps | |||||||||||||||||||||
Total Derivative Liabilities | – | 3,100.90 | – | (1,926.0 | ) | 1,174.90 | |||||||||||||||
Contingent Consideration | $ | – | $ | – | $ | 55.4 | $ | – | $ | 55.4 | |||||||||||
Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2013, derivative assets and liabilities shown above also include reductions of $210.7 million and $767.7 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. | |||||||||||||||||||||
Changes in Level 3 Assets | The following tables present the changes in Level 3 assets and liabilities for the years ended December 31, 2014, and 2013. | ||||||||||||||||||||
TABLE 43: CHANGES IN LEVEL 3 ASSETS AND LIABILITIES | |||||||||||||||||||||
LEVEL 3 ASSETS | AUCTION RATE SECURITIES | ||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||
Fair Value at January 1 | $ | 98.9 | $ | 97.8 | |||||||||||||||||
Total Gains (Losses): | |||||||||||||||||||||
Included in Earnings(1) | 4.4 | 0.1 | |||||||||||||||||||
Included in Other Comprehensive Income(2) | (1.7 | ) | 3.8 | ||||||||||||||||||
Purchases, Issuances, Sales, and Settlements: | |||||||||||||||||||||
Sales | (55.7 | ) | (0.6 | ) | |||||||||||||||||
Settlements | (27.8 | ) | (2.2 | ) | |||||||||||||||||
Fair Value at December 31 | $ | 18.1 | $ | 98.9 | |||||||||||||||||
(1) Realized gains for the year ended December 31, 2014, of $4.4 million represents gains from the sale of securities of $1.7 million and redemptions by issuers of $2.7 million. Realized gains for the year ended December 31, 2013, of $0.1 million represents gains from redemptions by issuers. Gains on sales are recorded in investment security gains (losses) and gains on redemptions are recorded in interest income within the consolidated statement of income. | |||||||||||||||||||||
(2) Unrealized gains (losses) are included in net unrealized gains (losses) on securities available for sale, within the consolidated statement of comprehensive income. | |||||||||||||||||||||
Changes in Level 3 Liabilities | |||||||||||||||||||||
LEVEL 3 LIABILITIES | CONTINGENT CONSIDERATION | ||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||
Fair Value at January 1 | $ | 55.4 | $ | 50.1 | |||||||||||||||||
Total (Gains) and Losses: | |||||||||||||||||||||
Included in Earnings(1) | (0.1 | ) | 5.3 | ||||||||||||||||||
Purchases, Issuances, Sales, and Settlements: | |||||||||||||||||||||
Settlements | (55.3 | ) | – | ||||||||||||||||||
Fair Value at December 31 | $ | – | $ | 55.4 | |||||||||||||||||
Unrealized (Gains) Losses Included in Earnings Related to Financial Instruments Held at December 31(1) | $ | – | $ | 5.3 | |||||||||||||||||
(1) Gains (losses) are recorded in other operating income (expense) within the consolidated statement of income. | |||||||||||||||||||||
Book and Fair Values of All Financial Instruments | The following tables summarize the fair values of all financial instruments. | ||||||||||||||||||||
TABLE 45: FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||
DECEMBER 31, 2014 | |||||||||||||||||||||
FAIR VALUE | |||||||||||||||||||||
(In Millions) | BOOK VALUE | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||||||
FAIR VALUE | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and Due from Banks | $ | 3,050.60 | $ | 3,050.60 | $ | 3,050.60 | $ | – | $ | – | |||||||||||
Federal Funds Sold and Resell Agreements | 1,062.70 | 1,062.70 | – | 1,062.70 | – | ||||||||||||||||
Interest-Bearing Deposits with Banks | 14,928.30 | 14,928.30 | – | 14,928.30 | – | ||||||||||||||||
Federal Reserve Deposits | 17,386.30 | 17,386.30 | – | 17,386.30 | – | ||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale (Note) | 29,558.50 | 29,558.50 | 4,506.90 | 25,033.50 | 18.1 | ||||||||||||||||
Held to Maturity | 4,170.80 | 4,176.10 | – | 4,176.10 | – | ||||||||||||||||
Trading Account | 4.7 | 4.7 | – | 4.7 | – | ||||||||||||||||
Loans (excluding Leases) | |||||||||||||||||||||
Held for Investment | 30,458.00 | 30,600.40 | – | – | 30,600.40 | ||||||||||||||||
Held for Sale | 2.5 | 2.5 | – | – | 2.5 | ||||||||||||||||
Client Security Settlement Receivables | 1,568.80 | 1,568.80 | – | 1,568.80 | – | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Federal Reserve and Federal Home Loan Bank Stock | 207.5 | 207.5 | – | 207.5 | – | ||||||||||||||||
Community Development Investments | 209.9 | 210.8 | – | 210.8 | – | ||||||||||||||||
Employee Benefit and Deferred Compensation | 143.2 | 146.7 | 96.7 | 50 | – | ||||||||||||||||
LIABILITIES | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Demand, Noninterest-Bearing, Savings and Money Market | $ | 41,454.60 | $ | 41,454.60 | $ | 41,454.60 | $ | – | $ | – | |||||||||||
Savings Certificates and Other Time | 1,757.40 | 1,757.00 | – | 1,757.00 | – | ||||||||||||||||
Non-U.S. Offices Interest-Bearing | 47,545.00 | 47,545.00 | – | 47,545.00 | – | ||||||||||||||||
Federal Funds Purchased | 932.9 | 932.9 | – | 932.9 | – | ||||||||||||||||
Securities Sold under Agreements to Repurchase | 885.1 | 885.1 | – | 885.1 | – | ||||||||||||||||
Other Borrowings | 1,685.20 | 1,686.20 | – | 1,686.20 | – | ||||||||||||||||
Senior Notes | 1,497.00 | 1,541.80 | – | 1,541.80 | – | ||||||||||||||||
Long Term Debt (excluding Leases) | |||||||||||||||||||||
Subordinated Debt | 1,583.30 | 1,583.40 | – | 1,583.40 | – | ||||||||||||||||
Floating Rate Capital Debt | 277.2 | 242.8 | – | 242.8 | – | ||||||||||||||||
Other Liabilities | |||||||||||||||||||||
Standby Letters of Credit | 60.1 | 60.1 | – | – | 60.1 | ||||||||||||||||
Loan Commitments | 28.3 | 28.3 | – | – | 28.3 | ||||||||||||||||
DERIVATIVE INSTRUMENTS | |||||||||||||||||||||
Asset/Liability Management | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | $ | 125.7 | $ | 125.7 | $ | – | $ | 125.7 | $ | – | |||||||||||
Liabilities | 23.5 | 23.5 | – | 23.5 | – | ||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||
Assets | 126.8 | 126.8 | – | 126.8 | – | ||||||||||||||||
Liabilities | 30.5 | 30.5 | – | 30.5 | – | ||||||||||||||||
Client-Related and Trading | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | 4,149.50 | 4,149.50 | – | 4,149.50 | – | ||||||||||||||||
Liabilities | 4,072.00 | 4,072.00 | – | 4,072.00 | – | ||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||
Assets | 105.5 | 105.5 | – | 105.5 | – | ||||||||||||||||
Liabilities | 101.3 | 101.3 | – | 101.3 | – | ||||||||||||||||
Note: Refer to the table located on page 87 for the disaggregation of available for sale securities. | |||||||||||||||||||||
DECEMBER 31, 2013 | |||||||||||||||||||||
(In Millions) | FAIR VALUE | ||||||||||||||||||||
BOOK VALUE | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | |||||||||||||||||
FAIR VALUE | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and Due from Banks | $ | 3,162.40 | $ | 3,162.40 | $ | 3,162.40 | $ | – | $ | – | |||||||||||
Federal Funds Sold and Resell Agreements | 529.6 | 529.6 | – | 529.6 | – | ||||||||||||||||
Interest-Bearing Deposits with Banks | 19,397.40 | 19,397.40 | – | 19,397.40 | – | ||||||||||||||||
Federal Reserve Deposits | 12,911.50 | 12,911.50 | – | 12,911.50 | – | ||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale (Note) | 28,392.80 | 28,392.80 | 1,917.90 | 26,376.00 | 98.9 | ||||||||||||||||
Held to Maturity | 2,325.80 | 2,321.40 | – | 2,321.40 | – | ||||||||||||||||
Trading Account | 1.7 | 1.7 | – | 1.7 | – | ||||||||||||||||
Loans (excluding Leases) | |||||||||||||||||||||
Held for Investment | 28,136.50 | 28,147.20 | – | – | 28,147.20 | ||||||||||||||||
Held for Sale | – | – | – | – | – | ||||||||||||||||
Client Security Settlement Receivables | 1,355.20 | 1,355.20 | – | 1,355.20 | – | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Federal Reserve and Federal Home Loan Bank Stock | 194.7 | 194.7 | – | 194.7 | – | ||||||||||||||||
Community Development Investments | 228.1 | 227.8 | – | 227.8 | – | ||||||||||||||||
Employee Benefit and Deferred Compensation | 132.7 | 126.9 | 79.3 | 47.6 | – | ||||||||||||||||
LIABILITIES | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Demand, Noninterest-Bearing, Savings and Money Market | $ | 33,762.00 | $ | 33,762.00 | $ | 33,762.00 | $ | – | $ | – | |||||||||||
Savings Certificates and Other Time | 1,874.40 | 1,877.10 | – | 1,877.10 | – | ||||||||||||||||
Non-U.S. Offices Interest-Bearing | 48,461.70 | 48,461.70 | – | 48,461.70 | – | ||||||||||||||||
Federal Funds Purchased | 965.1 | 965.1 | – | 965.1 | – | ||||||||||||||||
Securities Sold under Agreements to Repurchase | 917.3 | 917.3 | – | 917.3 | – | ||||||||||||||||
Other Borrowings | 1,558.60 | 1,558.60 | – | 1,558.60 | – | ||||||||||||||||
Senior Notes | 1,996.60 | 1,989.30 | – | 1,989.30 | – | ||||||||||||||||
Long Term Debt (excluding Leases) | |||||||||||||||||||||
Subordinated Debt | 1,537.30 | 1,563.50 | – | 1,563.50 | – | ||||||||||||||||
Federal Home Loan Bank Borrowings | 135 | 137.2 | – | 137.2 | – | ||||||||||||||||
Floating Rate Capital Debt | 277.1 | 230.2 | – | 230.2 | – | ||||||||||||||||
Other Liabilities | |||||||||||||||||||||
Standby Letters of Credit | 59.6 | 59.6 | – | – | 59.6 | ||||||||||||||||
Contingent Consideration | 55.4 | 55.4 | – | – | 55.4 | ||||||||||||||||
Loan Commitments | 35.7 | 35.7 | – | – | 35.7 | ||||||||||||||||
DERIVATIVE INSTRUMENTS | |||||||||||||||||||||
Asset/Liability Management | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | $ | 21 | $ | 21 | $ | – | $ | 21 | $ | – | |||||||||||
Liabilities | 59.5 | 59.5 | – | 59.5 | – | ||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||
Assets | 115.1 | 115.1 | – | 115.1 | – | ||||||||||||||||
Liabilities | 78.2 | 78.2 | – | 78.2 | – | ||||||||||||||||
Client-Related and Trading | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | 2,844.70 | 2,844.70 | – | 2,844.70 | – | ||||||||||||||||
Liabilities | 2,846.20 | 2,846.20 | – | 2,846.20 | – | ||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||
Assets | 122.8 | 122.8 | – | 122.8 | – | ||||||||||||||||
Liabilities | 117 | 117 | – | 117 | – | ||||||||||||||||
Note: Refer to the table located on page 88 for the disaggregation of available for sale securities. | |||||||||||||||||||||
Fair Value, Measurements, Recurring | |||||||||||||||||||||
Valuation Techniques, Significant Unobservable Inputs, and Quantitative Information | The following presents the fair values of, and the valuation techniques, significant unobservable inputs, and quantitative information used to develop significant unobservable inputs for, Northern Trust’s Level 3 assets and liabilities as of December 31, 2014. | ||||||||||||||||||||
TABLE 41: LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS | |||||||||||||||||||||
FINANCIAL INSTRUMENT | FAIR VALUE | VALUATION TECHNIQUE | UNOBSERVABLE INPUT | RANGE OF LIVES AND RATES | |||||||||||||||||
Auction Rate Securities | $ | 18.1 million | Discounted Cash Flow | Remaining lives | 1.4 – 8.6 years | ||||||||||||||||
Discount rates | 0.2% – 8.1% | ||||||||||||||||||||
Fair Value, Measurements, Nonrecurring | |||||||||||||||||||||
Valuation Techniques, Significant Unobservable Inputs, and Quantitative Information | The following table provides the fair value of, and the valuation technique, significant unobservable inputs, and quantitative information used to develop the significant unobservable inputs for, Northern Trust’s Level 3 assets that were measured at fair value on a nonrecurring basis as of December 31, 2014. | ||||||||||||||||||||
TABLE 44: LEVEL 3 NONRECURRING BASIS SIGNIFICANT UNOBSERVABLE INPUTS | |||||||||||||||||||||
FINANCIAL INSTRUMENT | FAIR VALUE | VALUATION TECHNIQUE | UNOBSERVABLE INPUT | RANGE OF DISCOUNTS APPLIED | |||||||||||||||||
Loans | $14.2 million | Market Approach | Discount to reflect realizable value | 15% – 25% | |||||||||||||||||
OREO | $4.1 million | Market Approach | Discount to reflect realizable value | 15% – 20% |
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Reconciliation of Amortized Cost to Fair Value of Securities Available for Sale | The following tables provide the amortized cost, fair values, and remaining maturities of securities available for sale. | ||||||||||||||||||||||||
TABLE 46: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF SECURITIES AVAILABLE FOR SALE | |||||||||||||||||||||||||
DECEMBER 31, 2014 | |||||||||||||||||||||||||
(In Millions) | AMORTIZED | GROSS | GROSS | FAIR | |||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||
GAINS | LOSSES | ||||||||||||||||||||||||
U.S. Government | $ | 4,493.50 | $ | 15.1 | $ | 1.7 | $ | 4,506.90 | |||||||||||||||||
Obligations of States and Political Subdivisions | 4.5 | 0.1 | – | 4.6 | |||||||||||||||||||||
Government Sponsored Agency | 16,326.40 | 82.3 | 19.5 | 16,389.20 | |||||||||||||||||||||
Non-U.S. Government | 309.5 | 0.9 | – | 310.4 | |||||||||||||||||||||
Corporate Debt | 3,617.50 | 1.8 | 41.6 | 3,577.70 | |||||||||||||||||||||
Covered Bonds | 1,899.90 | 7.9 | 0.3 | 1,907.50 | |||||||||||||||||||||
Supranational and Non-U.S. Agency Bonds | 360 | 1.5 | 0.9 | 360.6 | |||||||||||||||||||||
Residential Mortgage-Backed | 6.9 | – | 0.5 | 6.4 | |||||||||||||||||||||
Other Asset-Backed | 2,321.80 | 0.5 | 1 | 2,321.30 | |||||||||||||||||||||
Auction Rate | 18.4 | 0.5 | 0.8 | 18.1 | |||||||||||||||||||||
Other | 155.7 | 0.3 | 0.2 | 155.8 | |||||||||||||||||||||
Total | $ | 29,514.10 | $ | 110.9 | $ | 66.5 | $ | 29,558.50 | |||||||||||||||||
DECEMBER 31, 2013 | |||||||||||||||||||||||||
(In Millions) | AMORTIZED | GROSS | GROSS | FAIR | |||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||
GAINS | LOSSES | ||||||||||||||||||||||||
U.S. Government | $ | 1,896.70 | $ | 22.6 | $ | 1.4 | $ | 1,917.90 | |||||||||||||||||
Obligations of States and Political Subdivisions | 4.5 | 0.1 | – | 4.6 | |||||||||||||||||||||
Government Sponsored Agency | 17,495.20 | 80.7 | 47.9 | 17,528.00 | |||||||||||||||||||||
Non-U.S. Government | 307 | 3.6 | – | 310.6 | |||||||||||||||||||||
Corporate Debt | 3,615.20 | 10.5 | 101.2 | 3,524.50 | |||||||||||||||||||||
Covered Bonds | 1,898.90 | 50.9 | 5.9 | 1,943.90 | |||||||||||||||||||||
Supranational and Non-U.S. Agency Bonds | 410 | 1.7 | 1.7 | 410 | |||||||||||||||||||||
Residential Mortgage-Backed | 52.4 | 0.1 | 4.4 | 48.1 | |||||||||||||||||||||
Other Asset-Backed | 2,390.80 | 1.4 | 0.4 | 2,391.80 | |||||||||||||||||||||
Auction Rate | 97.5 | 2.2 | 0.8 | 98.9 | |||||||||||||||||||||
Other | 214.1 | 0.4 | – | 214.5 | |||||||||||||||||||||
Total | $ | 28,382.30 | $ | 174.2 | $ | 163.7 | $ | 28,392.80 | |||||||||||||||||
Reconciliation of Amortized Cost to Fair Values of Securities Held to Maturity | The following tables provide the amortized cost, fair values and remaining maturities of securities held to maturity. | ||||||||||||||||||||||||
TABLE 48: RECONCILIATION OF AMORTIZED COST TO FAIR VALUES OF SECURITIES HELD TO MATURITY | |||||||||||||||||||||||||
DECEMBER 31, 2014 | |||||||||||||||||||||||||
(In Millions) | AMORTIZED | GROSS | GROSS | FAIR | |||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||
GAINS | LOSSES | ||||||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 121.9 | $ | 7.4 | $ | – | $ | 129.3 | |||||||||||||||||
Government Sponsored Agency | 18.4 | 1.1 | – | 19.5 | |||||||||||||||||||||
Non-U.S. Government | 1,281.60 | 6.6 | 0.4 | 1,287.80 | |||||||||||||||||||||
Certificates of Deposit | 924.3 | 0.1 | 0.1 | 924.3 | |||||||||||||||||||||
Supranational and Non-U.S. Agency Bonds | 1,745.80 | 10.9 | 0.5 | 1,756.20 | |||||||||||||||||||||
Other | 78.8 | 0.3 | 20.1 | 59 | |||||||||||||||||||||
Total | $ | 4,170.80 | $ | 26.4 | $ | 21.1 | $ | 4,176.10 | |||||||||||||||||
DECEMBER 31, 2013 | |||||||||||||||||||||||||
(In Millions) | AMORTIZED | GROSS | GROSS | FAIR | |||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||
GAINS | LOSSES | ||||||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 225.2 | $ | 10.3 | $ | – | $ | 235.5 | |||||||||||||||||
Government Sponsored Agency | 35.9 | 1.1 | – | 37 | |||||||||||||||||||||
Non-U.S. Government | 722 | 0.8 | 1.1 | 721.7 | |||||||||||||||||||||
Certificates of Deposit | 698.1 | – | 0.2 | 697.9 | |||||||||||||||||||||
Supranational and Non-U.S. Agency Bonds | 584.7 | – | 3.2 | 581.5 | |||||||||||||||||||||
Other | 59.9 | 0.1 | 12.2 | 47.8 | |||||||||||||||||||||
Total | $ | 2,325.80 | $ | 12.3 | $ | 16.7 | $ | 2,321.40 | |||||||||||||||||
Securities Continuous Unrealized Loss Position | The following tables provide information regarding securities that had been in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of December 31, 2014, and 2013. | ||||||||||||||||||||||||
TABLE 50: SECURITIES WITH UNREALIZED LOSSES | |||||||||||||||||||||||||
AS OF DECEMBER 31, 2014 | LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | TOTAL | ||||||||||||||||||||||
(In Millions) | FAIR | UNREALIZED | FAIR | UNREALIZED | FAIR | UNREALIZED | |||||||||||||||||||
VALUE | LOSSES | VALUE | LOSSES | VALUE | LOSSES | ||||||||||||||||||||
U.S. Government | $ | 998.2 | $ | 1.7 | $ | – | $ | – | $ | 998.2 | $ | 1.7 | |||||||||||||
Government Sponsored Agency | 2,344.90 | 6.6 | 1,730.00 | 12.9 | 4,074.90 | 19.5 | |||||||||||||||||||
Non-U.S. Government | 292.9 | 0.4 | – | – | 292.9 | 0.4 | |||||||||||||||||||
Corporate Debt | 1,244.50 | 3.9 | 1,338.80 | 37.7 | 2,583.30 | 41.6 | |||||||||||||||||||
Covered Bonds | 142.3 | 0.2 | 10 | 0.1 | 152.3 | 0.3 | |||||||||||||||||||
Supranational and Non-U.S. Agency Bonds | 313.2 | 0.3 | 175.5 | 1.1 | 488.7 | 1.4 | |||||||||||||||||||
Residential Mortgage-Backed | – | – | 4.5 | 0.5 | 4.5 | 0.5 | |||||||||||||||||||
Other Asset-Backed | 1,297.60 | 1 | – | – | 1,297.60 | 1 | |||||||||||||||||||
Certificates of Deposit | 438.6 | 0.1 | – | – | 438.6 | 0.1 | |||||||||||||||||||
Auction Rate | 2.4 | 0.2 | 4.7 | 0.6 | 7.1 | 0.8 | |||||||||||||||||||
Other | 27.1 | 12.1 | 45.6 | 8.2 | 72.7 | 20.3 | |||||||||||||||||||
Total | $ | 7,101.70 | $ | 26.5 | $ | 3,309.10 | $ | 61.1 | $ | 10,410.80 | $ | 87.6 | |||||||||||||
AS OF DECEMBER 31, 2013 | LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | TOTAL | ||||||||||||||||||||||
(In Millions) | FAIR | UNREALIZED | FAIR | UNREALIZED | FAIR | UNREALIZED | |||||||||||||||||||
VALUE | LOSSES | VALUE | LOSSES | VALUE | LOSSES | ||||||||||||||||||||
U.S. Government | $ | 896.4 | $ | 1.4 | $ | – | $ | – | $ | 896.4 | $ | 1.4 | |||||||||||||
Government Sponsored Agency | 4,340.80 | 42.6 | 413.7 | 5.3 | 4,754.50 | 47.9 | |||||||||||||||||||
Non-U.S. Government | 176.7 | 1.1 | – | – | 176.7 | 1.1 | |||||||||||||||||||
Corporate Debt | 1,759.50 | 85.4 | 267 | 15.8 | 2,026.50 | 101.2 | |||||||||||||||||||
Covered Bonds | 278.8 | 5.7 | 9.9 | 0.2 | 288.7 | 5.9 | |||||||||||||||||||
Supranational and Non-U.S. Agency Bonds | 612.7 | 4.9 | – | – | 612.7 | 4.9 | |||||||||||||||||||
Residential Mortgage-Backed | – | – | 42 | 4.4 | 42 | 4.4 | |||||||||||||||||||
Other Asset-Backed | 677 | 0.4 | – | – | 677 | 0.4 | |||||||||||||||||||
Certificates of Deposit | 684.2 | 0.2 | – | – | 684.2 | 0.2 | |||||||||||||||||||
Auction Rate | 22.1 | 0.1 | 14 | 0.7 | 36.1 | 0.8 | |||||||||||||||||||
Other | 25.7 | 4 | 29.5 | 8.2 | 55.2 | 12.2 | |||||||||||||||||||
Total | $ | 9,473.90 | $ | 145.8 | $ | 776.1 | $ | 34.6 | $ | 10,250.00 | $ | 180.4 | |||||||||||||
Book Values, Ultimate Default Rates, and Loss Severity Rates for Non-Agency Residential Mortgage-Backed Securities Portfolio, by Security Type | December 31, 2014, amortized cost, weighted average ultimate default rates, and impairment severity rates for the non-agency residential mortgage-backed securities portfolio, by security type, are provided in the following table. | ||||||||||||||||||||||||
TABLE 51: NON-AGENCY RESIDENTIAL MORTGAGE-BACKED SECURITIES | |||||||||||||||||||||||||
DECEMBER 31, 2014 | |||||||||||||||||||||||||
LOSS SEVERITY RATES | |||||||||||||||||||||||||
($ In Millions) | AMORTIZED | WEIGHTED AVERAGE | LOW | HIGH | WEIGHTED | ||||||||||||||||||||
COST | ULTIMATE DEFAULT | AVERAGE | |||||||||||||||||||||||
RATES | |||||||||||||||||||||||||
Prime | $ | 1.9 | 5 | % | 32.1 | % | 32.1 | % | 32.1 | % | |||||||||||||||
2nd Lien | 5 | 32.2 | 99 | 99 | 99 | ||||||||||||||||||||
Total Non-Agency Residential Mortgage-Backed Securities | $ | 6.9 | 25.3 | % | 32.1 | % | 99 | % | 81.1 | % | |||||||||||||||
Credit Related Impairment Losses Recognized in Earnings on Other Than Temporarily Impaired Securities | The table below provides information regarding total other-than-temporarily impaired securities, including noncredit-related amounts recognized in other comprehensive income and net impairment losses recognized in earnings, for the years ended December 31, 2014, 2013, and 2012. | ||||||||||||||||||||||||
TABLE 52: NET IMPAIRMENT LOSSES RECOGNIZED IN EARNINGS | DECEMBER 31, | ||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Changes in Other-Than-Temporary Impairment Losses(1) | $ | (4.9 | ) | $ | – | $ | (2.7 | ) | |||||||||||||||||
Noncredit-related Losses Recorded in / (Reclassified from) OCI(2) | 0.7 | – | (0.6 | ) | |||||||||||||||||||||
Net Impairment Losses Recognized in Earnings | $ | (4.2 | ) | $ | – | $ | (3.3 | ) | |||||||||||||||||
(1) For initial other-than-temporary impairments in the respective period, the balance includes the excess of the amortized cost over the fair value of the impaired securities. For subsequent impairments of the same security, the balance includes any additional changes in fair value of the security subsequent to its most recently recorded OTTI. | |||||||||||||||||||||||||
(2) For initial other-than-temporary impairments in the respective period, the balance includes the portion of the excess of amortized cost over the fair value of the impaired securities that was recorded in OCI. For subsequent impairments of the same security, the balance includes additional changes in OCI for that security subsequent to its most recently recorded OTTI. | |||||||||||||||||||||||||
Cumulative Credit-Related Losses Recognized in Earnings on Debt Securities Other-Than-Temporarily Impaired | Provided in the table below are the cumulative credit-related losses recognized in earnings on debt securities other-than-temporarily impaired. | ||||||||||||||||||||||||
TABLE 53: CUMULATIVE CREDIT-RELATED LOSSES ON SECURITIES HELD | YEAR ENDED DECEMBER 31, | ||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||
Cumulative Credit-Related Losses on Securities Held – Beginning of Year | $ | 8.8 | $ | 42.3 | |||||||||||||||||||||
Plus: Losses on Newly Identified Impairments | 1.8 | – | |||||||||||||||||||||||
Additional Losses on Previously Identified Impairments | 2.4 | – | |||||||||||||||||||||||
Less: Current and Prior Period Losses on Securities Sold During the Year | (7.8 | ) | (33.5 | ) | |||||||||||||||||||||
Cumulative Credit-Related Losses on Securities Held – End of Year | $ | 5.2 | $ | 8.8 | |||||||||||||||||||||
Available for Sale Investment Securities | |||||||||||||||||||||||||
Remaining Maturity of Securities | TABLE 47: REMAINING MATURITY OF SECURITIES AVAILABLE FOR SALE | ||||||||||||||||||||||||
DECEMBER 31, 2014 | DECEMBER 31, 2013 | ||||||||||||||||||||||||
(In Millions) | AMORTIZED | FAIR | AMORTIZED | FAIR | |||||||||||||||||||||
COST | VALUE | COST | VALUE | ||||||||||||||||||||||
Due in One Year or Less | $ | 7,467.40 | $ | 7,487.90 | $ | 9,552.90 | $ | 9,565.70 | |||||||||||||||||
Due After One Year Through Five Years | 17,132.70 | 17,157.60 | 15,011.40 | 15,067.20 | |||||||||||||||||||||
Due After Five Years Through Ten Years | 3,394.20 | 3,418.00 | 2,545.90 | 2,494.10 | |||||||||||||||||||||
Due After Ten Years | 1,519.80 | 1,495.00 | 1,272.10 | 1,265.80 | |||||||||||||||||||||
Total | $ | 29,514.10 | $ | 29,558.50 | $ | 28,382.30 | $ | 28,392.80 | |||||||||||||||||
Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. | |||||||||||||||||||||||||
Held-to-maturity Securities | |||||||||||||||||||||||||
Remaining Maturity of Securities | TABLE 49: REMAINING MATURITY OF SECURITIES HELD TO MATURITY | ||||||||||||||||||||||||
DECEMBER 31, 2014 | DECEMBER 31, 2013 | ||||||||||||||||||||||||
(In Millions) | AMORTIZED | FAIR | AMORTIZED | FAIR | |||||||||||||||||||||
COST | VALUE | COST | VALUE | ||||||||||||||||||||||
Due in One Year or Less | $ | 1,503.50 | $ | 1,504.70 | $ | 1,009.90 | $ | 1,011.20 | |||||||||||||||||
Due After One Year Through Five Years | 2,602.80 | 2,622.30 | 1,254.90 | 1,257.00 | |||||||||||||||||||||
Due After Five Years Through Ten Years | 23.5 | 21.5 | 26.1 | 27.1 | |||||||||||||||||||||
Due After Ten Years | 41 | 27.6 | 34.9 | 26.1 | |||||||||||||||||||||
Total | $ | 4,170.80 | $ | 4,176.10 | $ | 2,325.80 | $ | 2,321.40 | |||||||||||||||||
Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. |
Securities_Purchased_Under_Agr1
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Securities Purchased under Agreements to Resell | TABLE 54: SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL | ||||||||
($ In Millions) | 2014 | 2013 | |||||||
Balance at December 31 | $ | 1,000.00 | $ | 500 | |||||
Average Balance During the Year | 742.1 | 396.3 | |||||||
Average Interest Rate Earned During the Year | 0.45 | % | 0.46 | % | |||||
Maximum Month-End Balance During the Year | 1,000.00 | 571.5 | |||||||
Securities Sold under Agreements to Repurchase | TABLE 55: SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | ||||||||
($ In Millions) | 2014 | 2013 | |||||||
Balance at December 31 | $ | 885.1 | $ | 917.3 | |||||
Average Balance During the Year | 989.6 | 594.3 | |||||||
Average Interest Rate Paid During the Year | 0.04 | % | 0.07 | % | |||||
Maximum Month-End Balance During the Year | 1,038.10 | 917.3 |
Loans_and_Leases_Tables
Loans and Leases (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Amounts Outstanding for Loans and Leases by Segment and Class | Amounts outstanding for loans and leases, by segment and class, are shown below. | ||||||||||||||||||||||||||||||||
TABLE 56: LOANS AND LEASES | DECEMBER 31, | ||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 8,381.90 | $ | 7,375.80 | |||||||||||||||||||||||||||||
Commercial Real Estate | 3,333.30 | 2,955.80 | |||||||||||||||||||||||||||||||
Lease Financing, net | 916.3 | 975.1 | |||||||||||||||||||||||||||||||
Non-U.S. | 1,530.60 | 954.7 | |||||||||||||||||||||||||||||||
Other | 191.5 | 358.6 | |||||||||||||||||||||||||||||||
Total Commercial | 14,353.60 | 12,620.00 | |||||||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 9,782.60 | 10,271.30 | |||||||||||||||||||||||||||||||
Private Client | 7,466.90 | 6,445.60 | |||||||||||||||||||||||||||||||
Other | 37.1 | 48.6 | |||||||||||||||||||||||||||||||
Total Personal | 17,286.60 | 16,765.50 | |||||||||||||||||||||||||||||||
Total Loans and Leases | $ | 31,640.20 | $ | 29,385.50 | |||||||||||||||||||||||||||||
Allowance for Credit Losses Assigned to Loans and Leases | (267.0 | ) | (278.1 | ) | |||||||||||||||||||||||||||||
Net Loans and Leases | $ | 31,373.20 | $ | 29,107.40 | |||||||||||||||||||||||||||||
Components of Net Investment in Direct Finance and Leveraged Leases | The components of the net investment in direct finance and leveraged leases are as follows: | ||||||||||||||||||||||||||||||||
TABLE 57: DIRECT FINANCE AND LEVERAGED LEASES | DECEMBER 31, | ||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Direct Finance Leases: | |||||||||||||||||||||||||||||||||
Lease Receivable | $ | 195.4 | $ | 189.4 | |||||||||||||||||||||||||||||
Residual Value | 208.8 | 143.1 | |||||||||||||||||||||||||||||||
Initial Direct Costs | 3.6 | 2.5 | |||||||||||||||||||||||||||||||
Unearned Income | (39.1 | ) | (31.1 | ) | |||||||||||||||||||||||||||||
Investment in Direct Finance Leases | 368.7 | 303.9 | |||||||||||||||||||||||||||||||
Leveraged Leases: | |||||||||||||||||||||||||||||||||
Net Rental Receivable | 413.6 | 544.4 | |||||||||||||||||||||||||||||||
Residual Value | 285.6 | 295.6 | |||||||||||||||||||||||||||||||
Unearned Income | (151.6 | ) | (168.8 | ) | |||||||||||||||||||||||||||||
Investment in Leveraged Leases | 547.6 | 671.2 | |||||||||||||||||||||||||||||||
Lease Financing, net | $ | 916.3 | $ | 975.1 | |||||||||||||||||||||||||||||
Future Minimum Lease Payments to be Received | The following schedule reflects the future minimum lease payments to be received over the next five years under direct finance leases: | ||||||||||||||||||||||||||||||||
TABLE 58: FUTURE MINIMUM LEASE PAYMENTS | |||||||||||||||||||||||||||||||||
(In Millions) | FUTURE MINIMUM | ||||||||||||||||||||||||||||||||
LEASE PAYMENTS | |||||||||||||||||||||||||||||||||
2015 | $ | 48.4 | |||||||||||||||||||||||||||||||
2016 | 40.4 | ||||||||||||||||||||||||||||||||
2017 | 37.6 | ||||||||||||||||||||||||||||||||
2018 | 29.8 | ||||||||||||||||||||||||||||||||
2019 | 17.9 | ||||||||||||||||||||||||||||||||
Loan and Lease Segment and Class Balances Segregated by Borrower Ratings into "1 to 3", "4 to 5" and "6 to 9" (Watch List) Categories | Loan and lease segment and class balances at December 31, 2014, and 2013 are provided below, segregated by borrower ratings into “1 to 3”, “4 to 5”, and “6 to 9” (watch list), categories. | ||||||||||||||||||||||||||||||||
TABLE 59: BORROWER RATINGS | |||||||||||||||||||||||||||||||||
DECEMBER 31, 2014 | DECEMBER 31, 2013 | ||||||||||||||||||||||||||||||||
(In Millions) | 1 TO 3 | 4 TO 5 | 6 TO 9 | TOTAL | 1 TO 3 | 4 TO 5 | 6 TO 9 | TOTAL | |||||||||||||||||||||||||
CATEGORY | CATEGORY | CATEGORY | CATEGORY | CATEGORY | CATEGORY | ||||||||||||||||||||||||||||
(WATCH LIST) | (WATCH LIST) | ||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 5,340.90 | $ | 2,947.30 | $ | 93.7 | $ | 8,381.90 | $ | 4,432.50 | $ | 2,801.50 | $ | 141.8 | $ | 7,375.80 | |||||||||||||||||
Commercial Real Estate | 1,371.70 | 1,861.80 | 99.8 | 3,333.30 | 1,053.70 | 1,748.70 | 153.4 | 2,955.80 | |||||||||||||||||||||||||
Lease Financing, net | 552.5 | 360.3 | 3.5 | 916.3 | 685.7 | 285 | 4.4 | 975.1 | |||||||||||||||||||||||||
Non-U.S. | 636.8 | 892.9 | 0.9 | 1,530.60 | 442.8 | 511.9 | – | 954.7 | |||||||||||||||||||||||||
Other | 108.1 | 83.4 | – | 191.5 | 157.7 | 200.9 | – | 358.6 | |||||||||||||||||||||||||
Total Commercial | 8,010.00 | 6,145.70 | 197.9 | 14,353.60 | 6,772.40 | 5,548.00 | 299.6 | 12,620.00 | |||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 3,148.00 | 6,207.00 | 427.6 | 9,782.60 | 3,204.60 | 6,563.60 | 503.1 | 10,271.30 | |||||||||||||||||||||||||
Private Client | 5,143.80 | 2,311.70 | 11.4 | 7,466.90 | 3,957.60 | 2,481.20 | 6.8 | 6,445.60 | |||||||||||||||||||||||||
Other | 21.1 | 16 | – | 37.1 | 21.2 | 27.4 | – | 48.6 | |||||||||||||||||||||||||
Total Personal | 8,312.90 | 8,534.70 | 439 | 17,286.60 | 7,183.40 | 9,072.20 | 509.9 | 16,765.50 | |||||||||||||||||||||||||
Total Loans and Leases | $ | 16,322.90 | $ | 14,680.40 | $ | 636.9 | $ | 31,640.20 | $ | 13,955.80 | $ | 14,620.20 | $ | 809.5 | $ | 29,385.50 | |||||||||||||||||
Balances and Delinquency Status of Performing and Nonperforming Loans and Leases by Segment and Class as well as Total Other Real Estate Owned and Nonperforming Asset Balances | The following tables provide balances and delinquency status of performing and nonperforming loans and leases by segment and class, as well as the other real estate owned and total nonperforming asset balances, as of December 31, 2014, and 2013. | ||||||||||||||||||||||||||||||||
TABLE 60: DELINQUENCY STATUS | |||||||||||||||||||||||||||||||||
(In Millions) | CURRENT | 30 – 59 DAYS | 60 – 89 DAYS | 90 DAYS | TOTAL | NONPERFORMING | TOTAL LOANS | ||||||||||||||||||||||||||
PAST DUE | PAST DUE | OR MORE | PERFORMING | AND LEASES | |||||||||||||||||||||||||||||
PAST DUE | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 8,340.50 | $ | 14.5 | $ | 4 | $ | 7.9 | $ | 8,366.90 | $ | 15 | $ | 8,381.90 | |||||||||||||||||||
Commercial Real Estate | 3,274.30 | 9.6 | 9.8 | 2.5 | 3,296.20 | 37.1 | 3,333.30 | ||||||||||||||||||||||||||
Lease Financing, net | 916.3 | – | – | – | 916.3 | – | 916.3 | ||||||||||||||||||||||||||
Non-U.S. | 1,530.60 | – | – | – | 1,530.60 | – | 1,530.60 | ||||||||||||||||||||||||||
Other | 191.5 | – | – | – | 191.5 | – | 191.5 | ||||||||||||||||||||||||||
Total Commercial | 14,253.20 | 24.1 | 13.8 | 10.4 | 14,301.50 | 52.1 | 14,353.60 | ||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 9,556.30 | 49.5 | 9.9 | 4.5 | 9,620.20 | 162.4 | 9,782.60 | ||||||||||||||||||||||||||
Private Client | 7,396.00 | 56 | 5.9 | 7.8 | 7,465.70 | 1.2 | 7,466.90 | ||||||||||||||||||||||||||
Other | 37.1 | – | – | – | 37.1 | – | 37.1 | ||||||||||||||||||||||||||
Total Personal | 16,989.40 | 105.5 | 15.8 | 12.3 | 17,123.00 | 163.6 | 17,286.60 | ||||||||||||||||||||||||||
Total Loans and Leases | $ | 31,242.60 | $ | 129.6 | $ | 29.6 | $ | 22.7 | $ | 31,424.50 | $ | 215.7 | $ | 31,640.20 | |||||||||||||||||||
Other Real Estate Owned | $ | 16.6 | |||||||||||||||||||||||||||||||
Total Nonperforming Assets | $ | 232.3 | |||||||||||||||||||||||||||||||
(In Millions) | CURRENT | 30 – 59 DAYS | 60 – 89 DAYS | 90 DAYS | TOTAL | NONPERFORMING | TOTAL LOANS | ||||||||||||||||||||||||||
PAST DUE | PAST DUE | OR MORE | PERFORMING | AND LEASES | |||||||||||||||||||||||||||||
PAST DUE | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 7,332.30 | $ | 5 | $ | 12.1 | $ | 3.3 | $ | 7,352.70 | $ | 23.1 | $ | 7,375.80 | |||||||||||||||||||
Commercial Real Estate | 2,881.10 | 4.1 | 14.6 | 6.8 | 2,906.60 | 49.2 | 2,955.80 | ||||||||||||||||||||||||||
Lease Financing, net | 975.1 | – | – | – | 975.1 | – | 975.1 | ||||||||||||||||||||||||||
Non-U.S. | 954.7 | – | – | – | 954.7 | – | 954.7 | ||||||||||||||||||||||||||
Other | 358.6 | – | – | – | 358.6 | – | 358.6 | ||||||||||||||||||||||||||
Total Commercial | 12,501.80 | 9.1 | 26.7 | 10.1 | 12,547.70 | 72.3 | 12,620.00 | ||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 9,934.40 | 129.3 | 15.6 | 2.9 | 10,082.20 | 189.1 | 10,271.30 | ||||||||||||||||||||||||||
Private Client | 6,404.20 | 29.1 | 7.5 | 3.4 | 6,444.20 | 1.4 | 6,445.60 | ||||||||||||||||||||||||||
Other | 48.6 | – | – | – | 48.6 | – | 48.6 | ||||||||||||||||||||||||||
Total Personal | 16,387.20 | 158.4 | 23.1 | 6.3 | 16,575.00 | 190.5 | 16,765.50 | ||||||||||||||||||||||||||
Total Loans and Leases | $ | 28,889.00 | $ | 167.5 | $ | 49.8 | $ | 16.4 | $ | 29,122.70 | $ | 262.8 | $ | 29,385.50 | |||||||||||||||||||
Other Real Estate Owned | $ | 11.9 | |||||||||||||||||||||||||||||||
Total Nonperforming Assets | $ | 274.7 | |||||||||||||||||||||||||||||||
Impaired Loans By Segment and Class | The following tables provide information related to impaired loans by segment and class. | ||||||||||||||||||||||||||||||||
TABLE 61: IMPAIRED LOANS | |||||||||||||||||||||||||||||||||
AS OF DECEMBER 31, 2014 | AS OF DECEMBER 31, 2013 | ||||||||||||||||||||||||||||||||
(In Millions) | RECORDED | UNPAID | SPECIFIC | RECORDED | UNPAID | SPECIFIC | |||||||||||||||||||||||||||
INVESTMENT | PRINCIPAL | ALLOWANCE | INVESTMENT | PRINCIPAL | ALLOWANCE | ||||||||||||||||||||||||||||
BALANCE | BALANCE | ||||||||||||||||||||||||||||||||
With no related specific allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 9 | $ | 12 | $ | – | $ | 12.2 | $ | 18.1 | $ | – | |||||||||||||||||||||
Commercial Real Estate | 47 | 52.4 | – | 46.6 | 57.1 | – | |||||||||||||||||||||||||||
Lease Financing, net | 4.2 | 4.2 | – | 4.4 | 4.4 | – | |||||||||||||||||||||||||||
Residential Real Estate | 160.9 | 204.8 | – | 185 | 227.8 | – | |||||||||||||||||||||||||||
Private Client | 0.2 | 0.5 | – | 0.8 | 0.8 | – | |||||||||||||||||||||||||||
With a related specific allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 6.5 | 6.6 | 2.9 | 9.6 | 12.1 | 3.6 | |||||||||||||||||||||||||||
Commercial Real Estate | 12.2 | 18.3 | 2.9 | 26.7 | 31.5 | 4.5 | |||||||||||||||||||||||||||
Residential Real Estate | 1.4 | 1.4 | 0.4 | 8.1 | 8.7 | 2.3 | |||||||||||||||||||||||||||
Private Client | 0.8 | 0.8 | 0.4 | – | – | – | |||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
Commercial | 78.9 | 93.5 | 5.8 | 99.5 | 123.2 | 8.1 | |||||||||||||||||||||||||||
Personal | 163.3 | 207.5 | 0.8 | 193.9 | 237.3 | 2.3 | |||||||||||||||||||||||||||
Total | $ | 242.2 | $ | 301 | $ | 6.6 | $ | 293.4 | $ | 360.5 | $ | 10.4 | |||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2014 | YEAR ENDED DECEMBER 31, 2013 | ||||||||||||||||||||||||||||||||
(In Millions) | AVERAGE | INTEREST | AVERAGE | INTEREST | |||||||||||||||||||||||||||||
RECORDED | INCOME | RECORDED | INCOME | ||||||||||||||||||||||||||||||
INVESTMENT | RECOGNIZED | INVESTMENT | RECOGNIZED | ||||||||||||||||||||||||||||||
With no related specific allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 11.3 | $ | 0.1 | $ | 11.7 | $ | 0.2 | |||||||||||||||||||||||||
Commercial Real Estate | 46.1 | 1 | 42.4 | 0.9 | |||||||||||||||||||||||||||||
Lease Financing, net | 4.3 | 0.2 | 4.5 | 0.2 | |||||||||||||||||||||||||||||
Residential Real Estate | 176.7 | 2.6 | 160.2 | 2.5 | |||||||||||||||||||||||||||||
Private Client | 0.5 | – | 10.2 | – | |||||||||||||||||||||||||||||
With a related specific allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 9.6 | – | 12.5 | – | |||||||||||||||||||||||||||||
Commercial Real Estate | 18.8 | – | 31 | – | |||||||||||||||||||||||||||||
Lease Financing, net | – | – | 0.7 | – | |||||||||||||||||||||||||||||
Residential Real Estate | 3.3 | – | 5.7 | – | |||||||||||||||||||||||||||||
Private Client | 0.6 | – | 4 | – | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
Commercial | 90.1 | 1.3 | 102.8 | 1.3 | |||||||||||||||||||||||||||||
Personal | 181.1 | 2.6 | 180.1 | 2.5 | |||||||||||||||||||||||||||||
Total | $ | 271.2 | $ | 3.9 | $ | 282.9 | $ | 3.8 | |||||||||||||||||||||||||
Note: Average recorded investments in impaired loans are calculated as the average of the month-end impaired loan balances for the period. | |||||||||||||||||||||||||||||||||
Number of Loans and Leases Modified in TDRs and Total Recorded Investments and Unpaid Principal Balances | The following tables provide, by segment and class, the number of loans and leases modified in TDRs during the years ended December 31, 2014, and 2013, and the recorded investments and unpaid principal balances as of December 31, 2014, and 2013. | ||||||||||||||||||||||||||||||||
TABLE 62: TROUBLED DEBT RESTRUCTURINGS | |||||||||||||||||||||||||||||||||
($ In Millions) | NUMBER OF | RECORDED | UNPAID | ||||||||||||||||||||||||||||||
LOANS AND | INVESTMENT | PRINCIPAL | |||||||||||||||||||||||||||||||
LEASES | BALANCE | ||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 2 | $ | 0.7 | $ | 0.8 | ||||||||||||||||||||||||||||
Commercial Real Estate | 8 | 3.9 | 4.8 | ||||||||||||||||||||||||||||||
Total Commercial | 10 | 4.6 | 5.6 | ||||||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 124 | 15 | 17.9 | ||||||||||||||||||||||||||||||
Private Client | 4 | 0.2 | 0.5 | ||||||||||||||||||||||||||||||
Total Personal | 128 | 15.2 | 18.4 | ||||||||||||||||||||||||||||||
Total Loans and Leases | 138 | $ | 19.8 | $ | 24 | ||||||||||||||||||||||||||||
Note: Period end balances reflect all paydowns and charge-offs during the year. | |||||||||||||||||||||||||||||||||
($ In Millions) | NUMBER OF | RECORDED | UNPAID | ||||||||||||||||||||||||||||||
LOANS AND | INVESTMENT | PRINCIPAL | |||||||||||||||||||||||||||||||
LEASES | BALANCE | ||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 14 | $ | 3.4 | $ | 4.7 | ||||||||||||||||||||||||||||
Commercial Real Estate | 12 | 27.7 | 36.2 | ||||||||||||||||||||||||||||||
Total Commercial | 26 | 31.1 | 40.9 | ||||||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 168 | 49.1 | 60 | ||||||||||||||||||||||||||||||
Private Client | 9 | 12.9 | 12.9 | ||||||||||||||||||||||||||||||
Total Personal | 177 | 62 | 72.9 | ||||||||||||||||||||||||||||||
Total Loans and Leases | 203 | $ | 93.1 | $ | 113.8 | ||||||||||||||||||||||||||||
Note: Period end balances reflect all paydowns and charge-offs during the year. |
Allowance_for_Credit_Losses_Ta
Allowance for Credit Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Changes in Allowance for Credit Losses by Segment | Changes in the allowance for credit losses by segment were as follows: | ||||||||||||||||||||||||||||||||||||
TABLE 63: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In Millions) | COMMERCIAL | PERSONAL | TOTAL | COMMERCIAL | PERSONAL | TOTAL | COMMERCIAL | PERSONAL | TOTAL | ||||||||||||||||||||||||||||
Balance at Beginning of Year | $ | 168 | $ | 139.9 | $ | 307.9 | $ | 194.2 | $ | 133.4 | $ | 327.6 | $ | 211 | $ | 117.9 | $ | 328.9 | |||||||||||||||||||
Charge-Offs | (12.9 | ) | (23.2 | ) | (36.1 | ) | (16.7 | ) | (42.6 | ) | (59.3 | ) | (19.9 | ) | (43.1 | ) | (63.0 | ) | |||||||||||||||||||
Recoveries | 11.1 | 7 | 18.1 | 8.6 | 11 | 19.6 | 20.3 | 16.4 | 36.7 | ||||||||||||||||||||||||||||
Net (Charge-Offs) Recoveries | (1.8 | ) | (16.2 | ) | (18.0 | ) | (8.1 | ) | (31.6 | ) | (39.7 | ) | 0.4 | (26.7 | ) | (26.3 | ) | ||||||||||||||||||||
Provision for Credit Losses | 3.5 | 2.5 | 6 | (18.1 | ) | 38.1 | 20 | (17.2 | ) | 42.2 | 25 | ||||||||||||||||||||||||||
Balance at End of Year | $ | 169.7 | $ | 126.2 | $ | 295.9 | $ | 168 | $ | 139.9 | $ | 307.9 | $ | 194.2 | $ | 133.4 | $ | 327.6 | |||||||||||||||||||
Allowance for Credit Losses Assigned to: | |||||||||||||||||||||||||||||||||||||
Loans and Leases | $ | 143.8 | $ | 123.2 | $ | 267 | $ | 140.9 | $ | 137.2 | $ | 278.1 | $ | 166.1 | $ | 131.8 | $ | 297.9 | |||||||||||||||||||
Undrawn Commitments and Standby Letters of Credit | 25.9 | 3 | 28.9 | 27.1 | 2.7 | 29.8 | 28.1 | 1.6 | 29.7 | ||||||||||||||||||||||||||||
Total Allowance for Credit Losses | $ | 169.7 | $ | 126.2 | $ | 295.9 | $ | 168 | $ | 139.9 | $ | 307.9 | $ | 194.2 | $ | 133.4 | $ | 327.6 | |||||||||||||||||||
Allowances for Credit Losses and Recorded Investments in Loans and Leases by Segment | The following tables provide information regarding the recorded investments in loans and leases and the allowance for credit losses by segment as of December 31, 2014, and 2013. | ||||||||||||||||||||||||||||||||||||
TABLE 64: RECORDED INVESTMENTS IN LOANS AND LEASES | |||||||||||||||||||||||||||||||||||||
(In Millions) | COMMERCIAL | PERSONAL | TOTAL | ||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Loans and Leases | |||||||||||||||||||||||||||||||||||||
Specifically Evaluated for Impairment | $ | 78.9 | $ | 163.3 | $ | 242.2 | |||||||||||||||||||||||||||||||
Evaluated for Inherent Impairment | 14,274.70 | 17,123.30 | 31,398.00 | ||||||||||||||||||||||||||||||||||
Total Loans and Leases | 14,353.60 | 17,286.60 | 31,640.20 | ||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Credit Exposures | |||||||||||||||||||||||||||||||||||||
Specifically Evaluated for Impairment | 5.8 | 0.8 | 6.6 | ||||||||||||||||||||||||||||||||||
Evaluated for Inherent Impairment | 138 | 122.4 | 260.4 | ||||||||||||||||||||||||||||||||||
Allowance assigned to loans and leases | 143.8 | 123.2 | 267 | ||||||||||||||||||||||||||||||||||
Allowance for Undrawn Exposures | |||||||||||||||||||||||||||||||||||||
Commitments and Standby Letters of Credit | 25.9 | 3 | 28.9 | ||||||||||||||||||||||||||||||||||
Total Allowance for Credit Losses | $ | 169.7 | $ | 126.2 | $ | 295.9 | |||||||||||||||||||||||||||||||
(In Millions) | COMMERCIAL | PERSONAL | TOTAL | ||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Loans and Leases | |||||||||||||||||||||||||||||||||||||
Specifically Evaluated for Impairment | $ | 99.5 | $ | 193.9 | $ | 293.4 | |||||||||||||||||||||||||||||||
Evaluated for Inherent Impairment | 12,520.50 | 16,571.60 | 29,092.10 | ||||||||||||||||||||||||||||||||||
Total Loans and Leases | 12,620.00 | 16,765.50 | 29,385.50 | ||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Credit Exposures | |||||||||||||||||||||||||||||||||||||
Specifically Evaluated for Impairment | 8.1 | 2.3 | 10.4 | ||||||||||||||||||||||||||||||||||
Evaluated for Inherent Impairment | 132.8 | 134.9 | 267.7 | ||||||||||||||||||||||||||||||||||
Allowance assigned to loans and leases | 140.9 | 137.2 | 278.1 | ||||||||||||||||||||||||||||||||||
Allowance for Undrawn Exposures | |||||||||||||||||||||||||||||||||||||
Commitments and Standby Letters of Credit | 27.1 | 2.7 | 29.8 | ||||||||||||||||||||||||||||||||||
Total Allowance for Credit Losses | $ | 168 | $ | 139.9 | $ | 307.9 |
Concentrations_of_Credit_Risk_
Concentrations of Credit Risk (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commercial Real Estate Loan Types | The table below provides additional detail regarding commercial real estate loan types: | ||||||||
TABLE 65: COMMERCIAL REAL ESTATE LOANS | |||||||||
DECEMBER 31, | |||||||||
(In Millions) | 2014 | 2013 | |||||||
Commercial Mortgages | |||||||||
Apartment/ Multi-family | $ | 728.7 | $ | 616.2 | |||||
Office | 735.5 | 686 | |||||||
Retail | 854.1 | 768 | |||||||
Industrial/ Warehouse | 323.7 | 318.6 | |||||||
Other | 125.7 | 110.6 | |||||||
Total Commercial Mortgages | 2,767.70 | 2,499.40 | |||||||
Construction, Acquisition and Development Loans | 256.8 | 254.2 | |||||||
Single Family Investment | 121.3 | 110 | |||||||
Other Commercial Real Estate Related | 187.5 | 92.2 | |||||||
Total Commercial Real Estate Loans | $ | 3,333.30 | $ | 2,955.80 |
Buildings_and_Equipment_Tables
Buildings and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Buildings and Equipment | A summary of buildings and equipment is presented below. | ||||||||||||
TABLE 66: BUILDINGS AND EQUIPMENT | DECEMBER 31, 2014 | ||||||||||||
(In Millions) | ORIGINAL | ACCUMULATED | NET BOOK | ||||||||||
COST | DEPRECIATION | VALUE | |||||||||||
Land and Improvements | $ | 26.5 | $ | 0.7 | $ | 25.8 | |||||||
Buildings | 232.8 | 117.5 | 115.3 | ||||||||||
Equipment | 392.2 | 234.7 | 157.5 | ||||||||||
Leasehold Improvements | 327.3 | 212.1 | 115.2 | ||||||||||
Buildings Leased under Capital Leases | 82.5 | 52 | 30.5 | ||||||||||
Total Buildings and Equipment | 1,061.30 | 617 | 444.3 |
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Future Minimum Lease payments for Non-cancelable Operating Leases | Minimum annual lease commitments as of December 31, 2014, for all non-cancelable operating leases with a term of one year or more are as follows: | ||||
TABLE 67: MINIMUM LEASE PAYMENTS | |||||
(In Millions) | FUTURE MINIMUM | ||||
LEASE PAYMENTS | |||||
2015 | $ | 90.7 | |||
2016 | 86 | ||||
2017 | 80.2 | ||||
2018 | 70.5 | ||||
2019 | 61.8 | ||||
Later Years | 291.4 | ||||
Total Minimum Lease Payments | 680.6 | ||||
Less: Sublease Rentals | (24.0 | ) | |||
Net Minimum Lease Payments | $ | 656.6 | |||
Future Minimum Lease Payments for Capital Leases | The following table reflects the future minimum lease payments required under capital leases, net of any payments received on the long-term financing, and the present value of net capital lease obligations at December 31, 2014. | ||||
TABLE 68: PRESENT VALUE UNDER CAPITAL LEASE OBLIGATIONS | |||||
(In Millions) | FUTURE MINIMUM | ||||
LEASE PAYMENTS, NET | |||||
2015 | $ | 8.3 | |||
2016 | 8 | ||||
2017 | 8.2 | ||||
2018 | 8.4 | ||||
2019 | 8.7 | ||||
Later Years | (1.7 | ) | |||
Total Minimum Lease Payments, net | 39.9 | ||||
Less: Amount Representing Interest | (8.1 | ) | |||
Net Present Value under Capital Lease Obligations | $ | 31.8 |
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Changes by Reporting Segment in Carrying Amounts of Goodwill, including Effect of Foreign Exchange Rates on Non-U.S.-Dollar-Denominated Balances | Changes by reporting segment in the carrying amount of goodwill for the years ended December 31, 2014, and 2013, including the effect of foreign exchange rates on non-U.S. dollar denominated balances, were as follows: | ||||||||||||
TABLE 69: GOODWILL | |||||||||||||
(In Millions) | CORPORATE & | WEALTH | TOTAL | ||||||||||
INSTITUTIONAL | MANAGEMENT | ||||||||||||
SERVICES | |||||||||||||
Balance at December 31, 2012 | $ | 466.3 | $ | 71.5 | $ | 537.8 | |||||||
Foreign Exchange Rates | 2.9 | – | 2.9 | ||||||||||
Balance at December 31, 2013 | $ | 469.2 | $ | 71.5 | $ | 540.7 | |||||||
Foreign Exchange Rates | (7.4 | ) | (0.1 | ) | (7.5 | ) | |||||||
Balance at December 31, 2014 | $ | 461.8 | $ | 71.4 | $ | 533.2 | |||||||
Other Intangible Assets Subject to Amortization | The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of December 31, 2014, and 2013 were as follows. | ||||||||||||
TABLE 70: OTHER INTANGIBLE ASSETS | |||||||||||||
DECEMBER 31, | |||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||
Gross Carrying Amount | $ | 189.5 | $ | 198.2 | |||||||||
Accumulated Amortization | 129.5 | 115.2 | |||||||||||
Net Book Value | $ | 60 | $ | 83 |
Senior_Notes_and_LongTerm_Debt1
Senior Notes and Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Senior Notes Outstanding | A summary of senior notes outstanding at December 31, 2014 and 2013 is presented below. | ||||||||||||
TABLE 71: SENIOR NOTES | |||||||||||||
DECEMBER 31, | |||||||||||||
($ In Millions) | RATE | 2014 | 2013 | ||||||||||
Corporation-Senior Notes(1)(4) | |||||||||||||
Fixed Rate Due May 2014 | 4.63 | $ | – | $ | 500 | ||||||||
Fixed Rate Due Nov. 2020(5) | 3.45 | 499.6 | 499.5 | ||||||||||
Fixed Rate Due Aug. 2021(6) | 3.38 | 498.5 | 498.3 | ||||||||||
Fixed Rate Due Aug. 2022(7) | 2.38 | 498.9 | 498.8 | ||||||||||
Total Senior Notes | $ | 1,497.00 | $ | 1,996.60 | |||||||||
Summary of Long-Term Debt Outstanding | A summary of long-term debt outstanding at December 31, 2014 and 2013 is presented below. | ||||||||||||
TABLE 72: LONG-TERM DEBT | |||||||||||||
DECEMBER 31, | |||||||||||||
($ In Millions) | 2014 | 2013 | |||||||||||
Bank-Subordinated Debt(1)(4) | |||||||||||||
5.85% Notes due Nov. 2017(2)(11) | $ | 221.6 | $ | 228.9 | |||||||||
6.50% Notes due Aug. 2018(2)(8)(11) | 335 | 342.4 | |||||||||||
5.375% Sterling Denominated Notes due March 2015(9) | 233.7 | 248.3 | |||||||||||
Total Bank-Subordinated Debt | 790.3 | 819.6 | |||||||||||
Corporation-Subordinated 3.95% Notes due Oct. 2025(1)(4)(10)(11) | 793 | 717.7 | |||||||||||
Federal Home Loan Bank Borrowings | |||||||||||||
One Year or Less (Average Rate at Year End – 4.40% in 2013) | – | 135 | |||||||||||
Total Federal Home Loan Bank Borrowings | – | 135 | |||||||||||
Capital Lease Obligations(3) | 31.8 | 36.9 | |||||||||||
Total Long-Term Debt | $ | 1,615.10 | $ | 1,709.20 | |||||||||
Long-Term Debt Qualifying as Risk-Based Capital | $ | 1,009.10 | $ | 1,158.70 | |||||||||
(1) Not redeemable prior to maturity. | |||||||||||||
(2) Under the terms of its current Offering Circular dated November 6, 2013, the Bank has the ability to offer from time to time its senior bank notes in an aggregate principal amount of up to $4.5 billion at any one time outstanding and up to an additional $1.0 billion of subordinated notes. Each senior note will mature from 30 days to fifteen years, and each subordinated note will mature from five years to fifteen years, following its date of original issuance. Each note will mature on such date as selected by the initial purchaser and agreed to by the Bank. | |||||||||||||
(3) Refer to Note 10 – Lease Commitments. | |||||||||||||
(4) Debt issue costs are recorded as an asset and amortized on a straight-line basis over the life of the Note. | |||||||||||||
(5) Notes issued at a discount of 0.117%. | |||||||||||||
(6) Notes issued at a discount of 0.437% | |||||||||||||
(7) Notes issued at a discount of 0.283% | |||||||||||||
(8) Notes issued at a discount of 0.02% | |||||||||||||
(9) Notes issued at a discount of 0.484% | |||||||||||||
(10) Notes issued at a discount of 0.114% | |||||||||||||
(11) Interest rate swap contracts were entered into to modify the interest expense on these subordinated notes from fixed rates to floating rates. The swaps are recorded as fair value hedges and at December 31, 2014, increases in the carrying values of subordinated notes outstanding of $100.6 million were recorded. As of December 31, 2013, net adjustments in the carrying values of subordinated notes outstanding of $40.1 million were recorded. |
Floating_Rate_Capital_Debt_Tab
Floating Rate Capital Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary of Book Values of Outstanding Subordinated Debentures | The following table summarizes the book values of the outstanding subordinated debentures as of December 31, 2014 and 2013: | ||||||||
TABLE 73: SUBORDINATED DEBENTURES | |||||||||
DECEMBER 31, | |||||||||
(In Millions) | 2014 | 2013 | |||||||
NTC Capital I Subordinated Debentures due January 15, 2027 | $ | 154 | $ | 154 | |||||
NTC Capital II Subordinated Debentures due April 15, 2027 | 123.2 | 123.1 | |||||||
Total Subordinated Debentures | $ | 277.2 | $ | 277.1 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Analysis of Changes in Number of Shares of Common Stock Outstanding | An analysis of changes in the number of shares of common stock outstanding follows: | ||||||||||||
TABLE 74: SHARES OF COMMON STOCK | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at January 1 | 237,322,035 | 238,914,988 | 241,008,509 | ||||||||||
Incentive Plan and Awards | 1,040,015 | 863,958 | 449,463 | ||||||||||
Stock Options Exercised | 2,515,769 | 3,088,490 | 973,270 | ||||||||||
Treasury Stock Purchased | (7,487,114 | ) | (5,545,401 | ) | (3,516,254 | ) | |||||||
Balance at December 31 | 233,390,705 | 237,322,035 | 238,914,988 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the components of AOCI at December 31, 2014, 2013, and 2012, and changes during the years then ended. | ||||||||||||||||||||||||||||||||||||
TABLE 75: SUMMARY OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||||||||
(In Millions) | BALANCE AT | NET | BALANCE AT | NET | BALANCE AT | NET | BALANCE AT | ||||||||||||||||||||||||||||||
DECEMBER 31, | CHANGE | DECEMBER 31, | CHANGE | DECEMBER 31, | CHANGE | DECEMBER 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Net Unrealized Gains (Losses) on Securities Available for Sale | $ | 27.6 | $ | 21.6 | $ | 6 | $ | (95.0 | ) | $ | 101 | $ | 61.2 | $ | 39.8 | ||||||||||||||||||||||
Net Unrealized (Losses) Gains on Cash Flow Hedges | (4.7 | ) | (7.6 | ) | 2.9 | 4.3 | (1.4 | ) | 5.6 | (7.0 | ) | ||||||||||||||||||||||||||
Net Foreign Currency Adjustments | (1.7 | ) | (8.8 | ) | 7.1 | (3.4 | ) | 10.5 | 20 | (9.5 | ) | ||||||||||||||||||||||||||
Net Pension and Other Postretirement Benefit Adjustments | (340.9 | ) | (80.6 | ) | (260.3 | ) | 132.8 | (393.1 | ) | (24.2 | ) | (368.9 | ) | ||||||||||||||||||||||||
Total | $ | (319.7 | ) | $ | (75.4 | ) | $ | (244.3 | ) | $ | 38.7 | $ | (283.0 | ) | $ | 62.6 | $ | (345.6 | ) | ||||||||||||||||||
Components of Changes in Accumulated Other Comprehensive Income (Loss) | TABLE 76: DETAILS OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
(In Millions) | BEFORE | TAX | AFTER | BEFORE | TAX | AFTER | BEFORE | TAX | AFTER | ||||||||||||||||||||||||||||
TAX | EFFECT | TAX | TAX | EFFECT | TAX | TAX | EFFECT | TAX | |||||||||||||||||||||||||||||
Unrealized Gains (Losses) on Securities Available for Sale | |||||||||||||||||||||||||||||||||||||
Noncredit-Related Unrealized Losses on Securities OTTI | $ | 4.5 | $ | (1.7 | ) | $ | 2.8 | $ | 3 | $ | (1.1 | ) | $ | 1.9 | $ | 15.7 | $ | (5.9 | ) | $ | 9.8 | ||||||||||||||||
Other Unrealized Gains (Losses) on Securities Available for Sale | 30.1 | (11.4 | ) | 18.7 | (156.8 | ) | 59 | (97.8 | ) | 96.2 | (36.1 | ) | 60.1 | ||||||||||||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income | 0.1 | – | 0.1 | 1.6 | (0.7 | ) | 0.9 | (13.9 | ) | 5.2 | (8.7 | ) | |||||||||||||||||||||||||
Net Change | $ | 34.7 | $ | (13.1 | ) | $ | 21.6 | $ | (152.2 | ) | $ | 57.2 | $ | (95.0 | ) | $ | 98 | $ | (36.8 | ) | $ | 61.2 | |||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | |||||||||||||||||||||||||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | $ | (8.7 | ) | $ | 3.6 | $ | (5.1 | ) | $ | 2.1 | $ | (0.7 | ) | $ | 1.4 | $ | 3.2 | $ | (0.6 | ) | $ | 2.6 | |||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income | (4.0 | ) | 1.5 | (2.5 | ) | 4.7 | (1.8 | ) | 2.9 | 4.8 | (1.8 | ) | 3 | ||||||||||||||||||||||||
Net Change | $ | (12.7 | ) | $ | 5.1 | $ | (7.6 | ) | $ | 6.8 | $ | (2.5 | ) | $ | 4.3 | $ | 8 | $ | (2.4 | ) | $ | 5.6 | |||||||||||||||
Foreign Currency Adjustments | |||||||||||||||||||||||||||||||||||||
Foreign Currency Translation Adjustments | $ | (107.8 | ) | $ | 10.8 | $ | (97.0 | ) | $ | 91.9 | $ | (29.7 | ) | $ | 62.2 | $ | 37.9 | $ | 3.1 | $ | 41 | ||||||||||||||||
Long-Term Intra-Entity Foreign Currency Transaction Losses | (1.0 | ) | 0.4 | (0.6 | ) | – | – | – | – | – | – | ||||||||||||||||||||||||||
Net Investment Hedge Gains (Losses) | 142.6 | (53.8 | ) | 88.8 | (107.3 | ) | 41.7 | (65.6 | ) | (33.7 | ) | 12.7 | (21.0 | ) | |||||||||||||||||||||||
Net Change | $ | 33.8 | $ | (42.6 | ) | $ | (8.8 | ) | $ | (15.4 | ) | $ | 12 | $ | (3.4 | ) | $ | 4.2 | $ | 15.8 | $ | 20 | |||||||||||||||
Pension and Other Postretirement Benefit Adjustments | |||||||||||||||||||||||||||||||||||||
Net Actuarial Gains (Losses) | $ | (137.8 | ) | $ | 41.5 | $ | (96.3 | ) | $ | 157.7 | $ | (54.9 | ) | $ | 102.8 | $ | (62.8 | ) | $ | 15.8 | $ | (47.0 | ) | ||||||||||||||
Reclassification Adjustment for Losses Included in Net Income | 25.2 | (9.5 | ) | 15.7 | 46.1 | (16.1 | ) | 30 | 33.9 | (11.1 | ) | 22.8 | |||||||||||||||||||||||||
Net Change | $ | (112.6 | ) | $ | 32 | $ | (80.6 | ) | $ | 203.8 | $ | (71.0 | ) | $ | 132.8 | $ | (28.9 | ) | $ | 4.7 | $ | (24.2 | ) | ||||||||||||||
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | The following table provides the location and before-tax amounts of reclassifications out of AOCI during the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
TABLE 77: RECLASSIFICATION ADJUSTMENT OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||||||||
(In Millions) | LOCATION OF | AMOUNT OF RECLASSIFICATION | |||||||||||||||||||||||||||||||||||
RECLASSIFICATION ADJUSTMENTS | ADJUSTMENTS RECOGNIZED | ||||||||||||||||||||||||||||||||||||
RECOGNIZED IN INCOME | IN INCOME | ||||||||||||||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||||||||||||||
Realized (Gains) Losses on Securities Available for Sale | Investment Security Gains (Losses), net | $ | 0.1 | $ | 1.6 | $ | (13.9 | ) | |||||||||||||||||||||||||||||
Realized (Gains) Losses on Cash Flow Hedges | |||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Other Operating Income/ Expense | (4.0 | ) | 4.7 | 4.8 | ||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Adjustments | |||||||||||||||||||||||||||||||||||||
Amortization of Net Actuarial (Gains) Losses | Employee Benefits | 25.1 | 49 | 38.8 | |||||||||||||||||||||||||||||||||
Amortization of Prior Service Cost | Employee Benefits | 0.1 | (2.9 | ) | (4.9 | ) | |||||||||||||||||||||||||||||||
Gross Reclassification Adjustment | $ | 25.2 | $ | 46.1 | $ | 33.9 | |||||||||||||||||||||||||||||||
Net_Income_per_Common_Share_Ta
Net Income per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Computations of Net Income per Common Share | The computations of net income per common share are presented below. | ||||||||||||
TABLE 78: NET INCOME PER COMMON SHARE | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
($ In Millions Except Per Common Share Information) | 2014 | 2013 | 2012 | ||||||||||
BASIC NET INCOME PER COMMON SHARE | |||||||||||||
Average Number of Common Shares Outstanding | 235,829,790 | 239,265,313 | 240,417,805 | ||||||||||
Net Income | $ | 811.8 | $ | 731.3 | $ | 687.3 | |||||||
Less: Dividends on Preferred Stock | 9.5 | – | – | ||||||||||
Net Income Applicable to Common Stock | $ | 802.3 | $ | 731.3 | $ | 687.3 | |||||||
Less: Earnings Allocated to Participating Securities | 13.3 | 11.9 | 10 | ||||||||||
Earnings Allocated to Common Shares Outstanding | 789 | 719.4 | 677.3 | ||||||||||
Basic Net Income Per Common Share | 3.34 | 3.01 | 2.82 | ||||||||||
DILUTED NET INCOME PER COMMON SHARE | |||||||||||||
Average Number of Common Shares Outstanding | 235,829,790 | 239,265,313 | 240,417,805 | ||||||||||
Plus Dilutive Effect of Share-based Compensation | 1,890,465 | 1,289,527 | 463,439 | ||||||||||
Average Common and Potential Common Shares | 237,720,255 | 240,554,840 | 240,881,244 | ||||||||||
Earnings Allocated to Common and Potential Common Shares | $ | 789 | $ | 719.5 | $ | 677.3 | |||||||
Diluted Net Income Per Common Share | 3.32 | 2.99 | 2.81 | ||||||||||
Note: Common stock equivalents totaling 1,517,588, 3,498,894, and 12,158,601 for the years ended December 31, 2014, 2013, and 2012, respectively, were not included in the computation of diluted net income per common share because their inclusion would have been antidilutive. |
Net_Interest_Income_Tables
Net Interest Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Components of Net Interest Income | The components of net interest income were as follows: | ||||||||||||
TABLE 79: NET INTEREST INCOME | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Interest Income | |||||||||||||
Loans and Leases | $ | 735.9 | $ | 743.1 | $ | 828.6 | |||||||
Securities – Taxable | 274.9 | 237.2 | 250.6 | ||||||||||
– Non-Taxable | 7.2 | 11.6 | 17.7 | ||||||||||
Interest-Bearing Due from and Deposits with Banks (Note) | 127.6 | 142.1 | 176.4 | ||||||||||
Federal Reserve Deposits and Other | 41.3 | 21.5 | 14.4 | ||||||||||
Total Interest Income | $ | 1,186.90 | $ | 1,155.50 | $ | 1,287.70 | |||||||
Interest Expense | |||||||||||||
Deposits | $ | 81.7 | $ | 103.3 | $ | 156.7 | |||||||
Federal Funds Purchased | 1.3 | 1.5 | 1.2 | ||||||||||
Securities Sold under Agreements to Repurchase | 0.4 | 0.4 | 0.4 | ||||||||||
Other Borrowings | 3.4 | 3.3 | 4 | ||||||||||
Senior Notes | 54.7 | 74.4 | 72 | ||||||||||
Long-Term Debt | 37.7 | 37.1 | 60.3 | ||||||||||
Floating Rate Capital Debt | 2.2 | 2.4 | 2.8 | ||||||||||
Total Interest Expense | $ | 181.4 | $ | 222.4 | $ | 297.4 | |||||||
Net Interest Income | $ | 1,005.50 | $ | 933.1 | $ | 990.3 | |||||||
(Note): 2014 interest income was earned on cash and due from banks of $1.7 billion and interest-bearing deposits with banks of $14.9 billion as of December 31, 2014. |
Other_Operating_Income_and_Exp1
Other Operating Income and Expense (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Components of Other Operating Income | The components of other operating income were as follows: | ||||||||||||
TABLE 80: OTHER OPERATING INCOME | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Loan Service Fees | $ | 62.7 | $ | 61.9 | $ | 64.5 | |||||||
Banking Service Fees | 49.6 | 50.9 | 55 | ||||||||||
Other Income | 41.2 | 53.7 | 35.4 | ||||||||||
Total Other Operating Income | $ | 153.5 | $ | 166.5 | $ | 154.9 | |||||||
Components of Other Operating Expense | The components of other operating expense were as follows: | ||||||||||||
TABLE 81: OTHER OPERATING EXPENSE | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Business Promotion | $ | 88 | $ | 91.6 | $ | 87.8 | |||||||
FDIC Insurance Premiums | 22 | 23.5 | 25.4 | ||||||||||
Staff Related | 39.1 | 39.1 | 41.9 | ||||||||||
Other Intangibles Amortization | 19.5 | 21.1 | 20.3 | ||||||||||
Legal Settlement Charge | – | 19.2 | – | ||||||||||
Other Expenses | 103.5 | 119.7 | 107.5 | ||||||||||
Total Other Operating Expense | $ | 272.1 | $ | 314.2 | $ | 282.9 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Reconciliation of Total Provision for Income Taxes with Amounts Computed at Federal Tax Rate of 35% | The following table reconciles the total provision for income taxes recorded in the consolidated statement of income with the amounts computed at the statutory federal tax rate of 35%. | ||||||||||||
TABLE 82: INCOME TAXES | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Tax at Statutory Rate | $ | 416.6 | $ | 376.4 | $ | 347.3 | |||||||
Tax Exempt Income | (4.9 | ) | (6.2 | ) | (8.0 | ) | |||||||
Leveraged Lease Adjustments | (3.4 | ) | (2.3 | ) | (12.0 | ) | |||||||
Foreign Tax Rate Differential | (44.1 | ) | (27.6 | ) | (27.1 | ) | |||||||
State Taxes, net | 29.6 | 26.3 | 20.4 | ||||||||||
Other | (15.4 | ) | (22.4 | ) | (15.6 | ) | |||||||
Provision for Income Taxes | $ | 378.4 | $ | 344.2 | $ | 305 | |||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
TABLE 83: UNRECOGNIZED TAX BENEFITS | |||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||
Balance at January 1 | $ | 15.6 | $ | 19.4 | |||||||||
Additions for Tax Positions Taken in Prior Years | 3 | 2.4 | |||||||||||
Reductions for Tax Positions Taken in Prior Years | (5.5 | ) | (4.4 | ) | |||||||||
Reductions Resulting from Expiration of Statutes | (1.2 | ) | (1.8 | ) | |||||||||
Balance at December 31 | $ | 11.9 | $ | 15.6 | |||||||||
Components of Consolidated Provision for Income Taxes | The components of the consolidated provision for income taxes for each of the three years ended December 31 are as follows: | ||||||||||||
TABLE 84: PROVISION FOR INCOME TAXES | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Current Tax Provision: | |||||||||||||
Federal | $ | 291.5 | $ | 185.6 | $ | 140.5 | |||||||
State | 47.2 | 24.6 | 21.4 | ||||||||||
Non-U.S. | 76.1 | 67.4 | 63.4 | ||||||||||
Total | 414.8 | 277.6 | $ | 225.3 | |||||||||
Deferred Tax Provision: | |||||||||||||
Federal | (31.1 | ) | 53.9 | $ | 66 | ||||||||
State | (1.6 | ) | 14.1 | 10.6 | |||||||||
Non-U.S. | (3.7 | ) | (1.4 | ) | 3.1 | ||||||||
Total | (36.4 | ) | 66.6 | 79.7 | |||||||||
Provision for Income Taxes | $ | 378.4 | $ | 344.2 | $ | 305 | |||||||
Tax Charges (Benefits) Recorded Directly to Stockholders' Equity | In addition to the amounts shown above, tax charges (benefits) have been recorded directly to stockholders’ equity for the following items: | ||||||||||||
TABLE 85: TAX CHARGES (BENEFITS) RECORDED DIRECTLY TO STOCKHOLDERS’ EQUITY | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Current Tax Benefit for Employee Stock Options and Other Stock-Based Plans | $ | 8.8 | $ | 3 | $ | 2.3 | |||||||
Tax Effect of Other Comprehensive Income | 18.6 | 4.3 | 18.7 | ||||||||||
Deferred Tax Liabilities and Assets | Deferred tax liabilities and assets have been computed as follows: | ||||||||||||
TABLE 86: DEFERRED TAX LIABILITIES | DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
Deferred Tax Liabilities: | |||||||||||||
Lease Financing | $ | 388.6 | $ | 392 | $ | 409.1 | |||||||
Software Development | 316.1 | 299 | 277.8 | ||||||||||
Accumulated Depreciation | 24.1 | 22 | 19.7 | ||||||||||
Compensation and Benefits | 63.5 | 112.2 | 29.7 | ||||||||||
State Taxes, net | 62.3 | 63.3 | 54.7 | ||||||||||
Other Liabilities | 157.5 | 104 | 170.9 | ||||||||||
Gross Deferred Tax Liabilities | 1,012.10 | 992.5 | 961.9 | ||||||||||
Deferred Tax Assets: | |||||||||||||
Allowance for Credit Losses | 103.5 | 107.8 | 114.7 | ||||||||||
Other Assets | 126.7 | 85 | 118.4 | ||||||||||
Gross Deferred Tax Assets | 230.2 | 192.8 | 233.1 | ||||||||||
Valuation Reserve | (3.9 | ) | (3.9 | ) | (3.9 | ) | |||||||
Deferred Tax Assets, net of Valuation Reserve | 226.3 | 188.9 | 229.2 | ||||||||||
Net Deferred Tax Liabilities | $ | 785.8 | $ | 803.6 | $ | 732.7 |
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Change in Plan Assets | TABLE 92: CHANGE IN PLAN ASSETS | ||||||||||||||||||||||||||||||||||||
U.S. PLAN | NON-U.S. PLANS | ||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Fair Value of Assets at Beginning of Period | $ | 1,342.10 | $ | 1,277.70 | $ | 148.5 | $ | 133.9 | |||||||||||||||||||||||||||||
Actual Return on Assets | 157.1 | 122.1 | 22.2 | 11.5 | |||||||||||||||||||||||||||||||||
Employer Contributions | – | – | 4.8 | 4.3 | |||||||||||||||||||||||||||||||||
Benefits Paid | (58.4 | ) | (57.7 | ) | (6.6 | ) | (5.0 | ) | |||||||||||||||||||||||||||||
Foreign Exchange Rate Changes | – | – | (11.3 | ) | 3.8 | ||||||||||||||||||||||||||||||||
Fair Value of Assets at End of Period | $ | 1,440.80 | $ | 1,342.10 | $ | 157.6 | $ | 148.5 | |||||||||||||||||||||||||||||
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. pension plan assets, by major asset category, and their level within the fair value hierarchy defined by GAAP as of December 31, 2014, and 2013. | ||||||||||||||||||||||||||||||||||||
TABLE 93: FAIR VALUE OF U.S. PENSION PLAN ASSETS | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | |||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||||
U.S. | $ | 14.8 | $ | – | $ | – | $ | 14.8 | |||||||||||||||||||||||||||||
Fixed Income – U.S. Government | – | 159.5 | – | 159.5 | |||||||||||||||||||||||||||||||||
Other Investments | |||||||||||||||||||||||||||||||||||||
Mutual Funds: | |||||||||||||||||||||||||||||||||||||
Global Large Cap Blend | 69.6 | – | – | 69.6 | |||||||||||||||||||||||||||||||||
Collective Trust Funds: | |||||||||||||||||||||||||||||||||||||
Foreign Large Cap Blend | – | 105.4 | – | 105.4 | |||||||||||||||||||||||||||||||||
Foreign Small Cap Blend | – | 37.2 | – | 37.2 | |||||||||||||||||||||||||||||||||
Domestic Large Cap Blend | – | 196.7 | – | 196.7 | |||||||||||||||||||||||||||||||||
Domestic Small Cap Value | – | 26.5 | – | 26.5 | |||||||||||||||||||||||||||||||||
Domestic Mid Cap Value | – | 14.4 | – | 14.4 | |||||||||||||||||||||||||||||||||
Domestic Small Cap Growth | – | 21.2 | – | 21.2 | |||||||||||||||||||||||||||||||||
Domestic Mid Cap Growth | – | 15.2 | – | 15.2 | |||||||||||||||||||||||||||||||||
Short-Term Investment | – | 3.4 | – | 3.4 | |||||||||||||||||||||||||||||||||
Global Real Estate Blend | – | 73.8 | – | 73.8 | |||||||||||||||||||||||||||||||||
Domestic Long-Term Bond | – | 508 | – | 508 | |||||||||||||||||||||||||||||||||
Emerging Market Large Cap Blend | – | 68.2 | – | 68.2 | |||||||||||||||||||||||||||||||||
Private Equity Funds | – | – | 49 | 49 | |||||||||||||||||||||||||||||||||
Hedge Funds | – | – | 68.6 | 68.6 | |||||||||||||||||||||||||||||||||
Cash and Other | 9.3 | – | – | 9.3 | |||||||||||||||||||||||||||||||||
Total Assets at Fair Value | $ | 93.7 | $ | 1,229.50 | $ | 117.6 | $ | 1,440.80 | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | |||||||||||||||||||||||||||||||||
Preferred and Common Stock | |||||||||||||||||||||||||||||||||||||
U.S. | $ | 116 | $ | – | $ | – | $ | 116 | |||||||||||||||||||||||||||||
Non-U.S. | 52.9 | 3.9 | – | 56.8 | |||||||||||||||||||||||||||||||||
Fixed Income – U.S. Government | – | 131.7 | – | 131.7 | |||||||||||||||||||||||||||||||||
Other Investments | |||||||||||||||||||||||||||||||||||||
Mutual Funds: | |||||||||||||||||||||||||||||||||||||
Domestic Large Cap Growth | 69.4 | – | – | 69.4 | |||||||||||||||||||||||||||||||||
Foreign Large Cap Blend | 66.6 | – | – | 66.6 | |||||||||||||||||||||||||||||||||
Collective Trust Funds: | |||||||||||||||||||||||||||||||||||||
Foreign Large Cap Blend | – | 74.3 | – | 74.3 | |||||||||||||||||||||||||||||||||
Foreign Small Cap Blend | – | 31.6 | – | 31.6 | |||||||||||||||||||||||||||||||||
Domestic Large Cap Blend | – | 101 | – | 101 | |||||||||||||||||||||||||||||||||
Domestic Small Cap Value | – | 26.3 | – | 26.3 | |||||||||||||||||||||||||||||||||
Domestic Mid Cap Value | – | 19.1 | – | 19.1 | |||||||||||||||||||||||||||||||||
Domestic Small Cap Growth | – | 14.3 | – | 14.3 | |||||||||||||||||||||||||||||||||
Domestic Mid Cap Growth | – | 38 | – | 38 | |||||||||||||||||||||||||||||||||
Short-Term Investment | – | 6.6 | – | 6.6 | |||||||||||||||||||||||||||||||||
Global Real Estate Blend | – | 65.4 | – | 65.4 | |||||||||||||||||||||||||||||||||
Domestic Long-Term Bond | – | 333.7 | – | 333.7 | |||||||||||||||||||||||||||||||||
Emerging Market Large Cap Blend | – | 40.9 | – | 40.9 | |||||||||||||||||||||||||||||||||
Commodity Linked Fund | 39.7 | – | – | 39.7 | |||||||||||||||||||||||||||||||||
Ishares Index Fund | 2.4 | – | – | 2.4 | |||||||||||||||||||||||||||||||||
Private Equity Funds | – | – | 47.7 | 47.7 | |||||||||||||||||||||||||||||||||
Hedge Funds | – | – | 55.1 | 55.1 | |||||||||||||||||||||||||||||||||
Cash and Other | 5.5 | – | – | 5.5 | |||||||||||||||||||||||||||||||||
Total Assets at Fair Value | $ | 352.5 | $ | 886.8 | $ | 102.8 | $ | 1,342.10 | |||||||||||||||||||||||||||||
Health Care Cost Trend Rate Sensitivity Analysis | For example, increasing or decreasing the assumed health care trend rate by one percentage point in each year would have the following effect. | ||||||||||||||||||||||||||||||||||||
TABLE 100: HEALTH CARE COST TREND RATE ASSUMPTION | |||||||||||||||||||||||||||||||||||||
(In Millions) | 1–PERCENTAGE | 1–PERCENTAGE | |||||||||||||||||||||||||||||||||||
POINT INCREASE | POINT DECREASE | ||||||||||||||||||||||||||||||||||||
Effect on Postretirement Benefit Obligation | $ | 1 | $ | (0.9 | ) | ||||||||||||||||||||||||||||||||
Effect on Total Service and Interest Cost Components | – | – | |||||||||||||||||||||||||||||||||||
Pension Plans, Defined Benefit | |||||||||||||||||||||||||||||||||||||
Plan Status of U.S. Plan, Non-U.S. Plans and Supplemental Plan | TABLE 87: EMPLOYEE BENEFIT PLAN STATUS | ||||||||||||||||||||||||||||||||||||
U.S. PLAN | NON-U.S. PLANS | SUPPLEMENTAL PLAN | |||||||||||||||||||||||||||||||||||
($ In Millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Accumulated Benefit Obligation | $ | 974.8 | $ | 827.9 | $ | 184.6 | $ | 164.7 | $ | 109.2 | $ | 89.8 | |||||||||||||||||||||||||
Projected Benefit Obligation | 1,091.50 | 919.7 | 184.6 | 164.7 | 123 | 101.5 | |||||||||||||||||||||||||||||||
Plan Assets at Fair Value | 1,440.80 | 1,342.10 | 157.6 | 148.5 | – | – | |||||||||||||||||||||||||||||||
Funded Status at December 31 | $ | 349.3 | $ | 422.4 | $ | (27.0 | ) | $ | (16.2 | ) | $ | (123.0 | ) | $ | (101.5 | ) | |||||||||||||||||||||
Weighted-Average Assumptions: | |||||||||||||||||||||||||||||||||||||
Discount Rates | 4.25 | % | 5 | % | 3.2 | % | 4.31 | % | 4.25 | % | 5 | % | |||||||||||||||||||||||||
Rate of Increase in Compensation Level | 4.25 | 4.25 | N/A | N/A | 4.25 | 4.25 | |||||||||||||||||||||||||||||||
Expected Long-Term Rate of Return | 7.25 | 7.75 | 4 | 4.84 | N/A | N/A | |||||||||||||||||||||||||||||||
on Assets | |||||||||||||||||||||||||||||||||||||
Amount Included in Accumulated Other Comprehensive Income | TABLE 88: AMOUNTS INCLUDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||||||||
U.S. PLAN | NON-U.S. PLANS | SUPPLEMENTAL PLAN | |||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Net Actuarial Loss | $ | 382.9 | $ | 310.7 | $ | 60.5 | $ | 40.9 | $ | 81.5 | $ | 64.2 | |||||||||||||||||||||||||
Prior Service Cost | (3.1 | ) | (3.5 | ) | – | – | 1.1 | 1.6 | |||||||||||||||||||||||||||||
Gross Amount in Accumulated Other Comprehensive Income | 379.8 | 307.2 | 60.5 | 40.9 | 82.6 | 65.8 | |||||||||||||||||||||||||||||||
Income Tax Effect | 143.3 | 119.5 | 6.3 | 4.8 | 30.9 | 25.6 | |||||||||||||||||||||||||||||||
Net Amount in Accumulated Other Comprehensive Income | $ | 236.5 | $ | 187.7 | $ | 54.2 | $ | 36.1 | $ | 51.7 | $ | 40.2 | |||||||||||||||||||||||||
Components of Company's Net Periodic Benefit Cost | TABLE 89: NET PERIODIC PENSION EXPENSE | ||||||||||||||||||||||||||||||||||||
U.S. PLAN | NON-U.S. PLANS | SUPPLEMENTAL PLAN | |||||||||||||||||||||||||||||||||||
($ In Millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Service Cost | $ | 32.7 | $ | 30.3 | $ | 35.3 | $ | – | $ | – | $ | – | $ | 3.1 | $ | 1.6 | $ | 3 | |||||||||||||||||||
Interest Cost | 44.4 | 42.1 | 41.4 | 6.9 | 6.6 | 6.2 | 4.8 | 4.4 | 4.5 | ||||||||||||||||||||||||||||
Expected Return on Plan Assets | (97.7 | ) | (93.3 | ) | (87.0 | ) | (7.0 | ) | (6.2 | ) | (6.8 | ) | N/A | N/A | N/A | ||||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||||||||
Net Loss (Gain) | 21.5 | 42.5 | 34.3 | (1.6 | ) | 1 | 0.7 | 5.8 | 6.7 | 6.1 | |||||||||||||||||||||||||||
Prior Service Cost | 0.4 | (0.4 | ) | (0.4 | ) | – | – | – | 0.5 | 0.5 | 0.6 | ||||||||||||||||||||||||||
Net Periodic Pension Expense (Benefit) | $ | 0.5 | $ | 21.2 | $ | 23.6 | $ | (1.7 | ) | $ | 1.4 | $ | 0.1 | $ | 14.2 | $ | 13.2 | $ | 14.2 | ||||||||||||||||||
Weighted-Average Assumptions: | |||||||||||||||||||||||||||||||||||||
Discount Rates | 5 | % | 4.25 | % | 4.75 | % | 4.31 | % | 4.42 | % | 5.02 | % | 5 | % | 4.25 | % | 4.75 | % | |||||||||||||||||||
Rate of Increase in Compensation Level | 4.25 | 4.02 | 4.02 | N/A | N/A | N/A | 4.25 | 4.02 | 4.02 | ||||||||||||||||||||||||||||
Expected Long-Term Rate of Return | 7.75 | 7.75 | 8 | 4.84 | 4.76 | 5.28 | N/A | N/A | N/A | ||||||||||||||||||||||||||||
on Assets | |||||||||||||||||||||||||||||||||||||
Change in Benefit Obligation, Postretirement Health Care, and in Accumulated Postretirement Benefit Obligation | TABLE 90: CHANGE IN PROJECTED BENEFIT OBLIGATION | ||||||||||||||||||||||||||||||||||||
U.S. PLAN | NON-U.S. PLANS | SUPPLEMENTAL PLAN | |||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Beginning Balance | $ | 919.7 | $ | 1,030.40 | $ | 164.7 | $ | 158.1 | $ | 101.5 | $ | 106.4 | |||||||||||||||||||||||||
Service Cost | 32.7 | 30.3 | – | – | 3.1 | 1.6 | |||||||||||||||||||||||||||||||
Interest Cost | 44.4 | 42.1 | 6.9 | 6.6 | 4.8 | 4.4 | |||||||||||||||||||||||||||||||
Actuarial (Gain) Loss | 153.1 | (125.4 | ) | 33.2 | 0.4 | 23.1 | (0.5 | ) | |||||||||||||||||||||||||||||
Benefits Paid | (58.4 | ) | (57.7 | ) | (6.6 | ) | (5.0 | ) | (9.5 | ) | (10.4 | ) | |||||||||||||||||||||||||
Foreign Exchange Rate Changes | – | – | (13.6 | ) | 4.6 | – | – | ||||||||||||||||||||||||||||||
Ending Balance | $ | 1,091.50 | $ | 919.7 | $ | 184.6 | $ | 164.7 | $ | 123 | $ | 101.5 | |||||||||||||||||||||||||
Estimated Future Benefit Payments | TABLE 91: ESTIMATED FUTURE BENEFIT PAYMENTS | ||||||||||||||||||||||||||||||||||||
(In Millions) | U.S. | NON-U.S. | SUPPLEMENTAL | ||||||||||||||||||||||||||||||||||
PLAN | PLANS | PLAN | |||||||||||||||||||||||||||||||||||
2015 | $ | 69.4 | $ | 2.5 | $ | 9.5 | |||||||||||||||||||||||||||||||
2016 | 68.4 | 3.1 | 10.6 | ||||||||||||||||||||||||||||||||||
2017 | 70.2 | 2.6 | 12.7 | ||||||||||||||||||||||||||||||||||
2018 | 70.7 | 3 | 12.4 | ||||||||||||||||||||||||||||||||||
2019 | 71.2 | 3.3 | 12.3 | ||||||||||||||||||||||||||||||||||
2020-2024 | 345.2 | 22.4 | 60.2 | ||||||||||||||||||||||||||||||||||
Changes in Level 3 U.S. Pension Plan Assets | The following table presents the changes in Level 3 assets for the years ended December 31, 2014, and 2013. | ||||||||||||||||||||||||||||||||||||
TABLE 94: CHANGE IN LEVEL 3 ASSETS | |||||||||||||||||||||||||||||||||||||
PRIVATE EQUITY | HEDGE FUNDS | ||||||||||||||||||||||||||||||||||||
FUNDS | |||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Fair Value at January 1 | $ | 47.7 | $ | 47.4 | $ | 55.1 | $ | 30.2 | |||||||||||||||||||||||||||||
Actual Return on Plan Assets | 10.3 | 5.5 | 1.8 | 4.9 | |||||||||||||||||||||||||||||||||
Realized Gain | – | – | 1.7 | – | |||||||||||||||||||||||||||||||||
Purchases | 3.5 | 6.2 | 15 | 20 | |||||||||||||||||||||||||||||||||
Sales | (12.5 | ) | (11.4 | ) | (5.0 | ) | – | ||||||||||||||||||||||||||||||
Fair Value at December 31 | $ | 49 | $ | 47.7 | $ | 68.6 | $ | 55.1 | |||||||||||||||||||||||||||||
Other Postretirement Plan | |||||||||||||||||||||||||||||||||||||
Plan Status of U.S. Plan, Non-U.S. Plans and Supplemental Plan | |||||||||||||||||||||||||||||||||||||
TABLE 95: POSTRETIREMENT HEALTH CARE PLAN STATUS | DECEMBER 31, | ||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Accumulated Postretirement Benefit Obligation at Measurement Date: | |||||||||||||||||||||||||||||||||||||
Retirees and Dependents | $ | 25 | $ | 22.5 | |||||||||||||||||||||||||||||||||
Actives Eligible for Benefits | 8.4 | 8.7 | |||||||||||||||||||||||||||||||||||
Net Postretirement Benefit Obligation | $ | 33.4 | $ | 31.2 | |||||||||||||||||||||||||||||||||
Amount Included in Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||||||
TABLE 96: AMOUNTS INCLUDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME | DECEMBER 31, | ||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Net Actuarial Gain | $ | (2.4 | ) | $ | (6.0 | ) | |||||||||||||||||||||||||||||||
Prior Service Benefit | – | – | |||||||||||||||||||||||||||||||||||
Gross Amount in Accumulated Other Comprehensive Income | (2.4 | ) | (6.0 | ) | |||||||||||||||||||||||||||||||||
Income Tax Effect | (0.9 | ) | (2.3 | ) | |||||||||||||||||||||||||||||||||
Net Amount in Accumulated Other Comprehensive Income | $ | (1.5 | ) | $ | (3.7 | ) | |||||||||||||||||||||||||||||||
Components of Company's Net Periodic Benefit Cost | |||||||||||||||||||||||||||||||||||||
TABLE 97: NET PERIODIC POSTRETIREMENT (BENEFIT) EXPENSE | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Service Cost | $ | 0.1 | $ | 0.1 | $ | 0.2 | |||||||||||||||||||||||||||||||
Interest Cost | 1.5 | 1.2 | 1.3 | ||||||||||||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||||||||||||||
Net (Gain) Loss | (0.6 | ) | (1.2 | ) | (2.3 | ) | |||||||||||||||||||||||||||||||
Prior Service Benefit | – | (3.0 | ) | (5.1 | ) | ||||||||||||||||||||||||||||||||
Net Periodic Postretirement (Benefit) Expense | $ | 1 | $ | (2.9 | ) | $ | (5.9 | ) | |||||||||||||||||||||||||||||
Change in Benefit Obligation, Postretirement Health Care, and in Accumulated Postretirement Benefit Obligation | |||||||||||||||||||||||||||||||||||||
TABLE 98: CHANGE IN ACCUMULATED POSTRETIREMENT BENEFIT OBLIGATION | FOR THE YEAR ENDED | ||||||||||||||||||||||||||||||||||||
DECEMBER 31, | |||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Beginning Balance | $ | 31.2 | $ | 30.6 | |||||||||||||||||||||||||||||||||
Service Cost | 0.1 | 0.1 | |||||||||||||||||||||||||||||||||||
Interest Cost | 1.5 | 1.2 | |||||||||||||||||||||||||||||||||||
Actuarial Loss | 3 | 1.9 | |||||||||||||||||||||||||||||||||||
Net Claims Paid | (3.1 | ) | (2.8 | ) | |||||||||||||||||||||||||||||||||
Medicare Subsidy | 0.7 | 0.2 | |||||||||||||||||||||||||||||||||||
Ending Balance | $ | 33.4 | $ | 31.2 | |||||||||||||||||||||||||||||||||
Estimated Future Benefit Payments | |||||||||||||||||||||||||||||||||||||
TABLE 99: ESTIMATED FUTURE BENEFIT PAYMENTS | |||||||||||||||||||||||||||||||||||||
(In Millions) | TOTAL | ||||||||||||||||||||||||||||||||||||
POSTRETIREMENT | |||||||||||||||||||||||||||||||||||||
MEDICAL | |||||||||||||||||||||||||||||||||||||
BENEFITS | |||||||||||||||||||||||||||||||||||||
2015 | $ | 3 | |||||||||||||||||||||||||||||||||||
2016 | 3.1 | ||||||||||||||||||||||||||||||||||||
2017 | 3.1 | ||||||||||||||||||||||||||||||||||||
2018 | 3.1 | ||||||||||||||||||||||||||||||||||||
2019 | 3.1 | ||||||||||||||||||||||||||||||||||||
2020-2024 | 12.9 |
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Compensation Expense for Share-Based Payment Arrangements and Associated Tax Impacts | Total compensation expense for share-based payment arrangements to employees and the associated tax impacts were as follows for the periods presented: | ||||||||||||||||
TABLE 101: TOTAL COMPENSATION EXPENSE FOR SHARE-BASED PAYMENT ARRANGEMENTS TO EMPLOYEES | |||||||||||||||||
FOR THE YEAR ENDED | |||||||||||||||||
DECEMBER 31, | |||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||
Restricted Stock Unit Awards | $ | 52.9 | $ | 48 | $ | 44 | |||||||||||
Stock Options | 12.8 | 18.4 | 27.4 | ||||||||||||||
Performance Stock Units | 12 | 7.4 | 2.5 | ||||||||||||||
Total Share-Based Compensation Expense | $ | 77.7 | $ | 73.8 | $ | 73.9 | |||||||||||
Tax Benefits Recognized | $ | 29.1 | $ | 27.7 | $ | 27.7 | |||||||||||
Weighted Average Assumptions Used for Options Granted | The weighted-average assumptions used for options granted during the years ended December 31 are as follows: | ||||||||||||||||
TABLE 102: WEIGHTED-AVERAGE ASSUMPTIONS USED FOR OPTIONS GRANTED | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected Term (in Years) | 7.3 | 7.6 | 7.5 | ||||||||||||||
Dividend Yield | 2.16 | % | 2.38 | % | 2.79 | % | |||||||||||
Expected Volatility | 30.1 | 29.5 | 34 | ||||||||||||||
Risk-Free Interest Rate | 2.02 | 1.43 | 1.42 | ||||||||||||||
Information Pertaining to Stock Options Granted, Vested and Exercised | The following table provides information about stock options granted, vested, and exercised in the years ended December 31, 2014, 2013, and 2012. | ||||||||||||||||
TABLE 103: STOCK OPTIONS GRANTED, VESTED, AND EXERCISED | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||||||
(In Millions, Except Per Share Information) | 2014 | 2013 | 2012 | ||||||||||||||
Weighted Average Grant-Date Per Share Fair Value of Stock Options Granted | $ | 16.22 | $ | 12.8 | $ | 11.54 | |||||||||||
Grant-Date Fair Value of Stock Options Vested | 21.9 | 30 | 32.1 | ||||||||||||||
Stock Options Exercised | |||||||||||||||||
Intrinsic Value as of Exercise Date | 35.3 | 26.9 | 12.8 | ||||||||||||||
Cash Received | 127.5 | 146.2 | 32.3 | ||||||||||||||
Tax Deduction Benefits Realized | 12.9 | 9.8 | 4.6 | ||||||||||||||
Summary of Status of Stock Options under 2012 Plan and 2002 Plan | A summary of the status of stock options under the 2012 Plan and the 2002 Plan at December 31, 2014, and changes during the year then ended, are presented in the table below. | ||||||||||||||||
TABLE 105: STATUS OF STOCK OPTIONS AND CHANGES | |||||||||||||||||
($ In Millions Except Per Share Information) | SHARES | WEIGHTED | WEIGHTED | AGGREGATE | |||||||||||||
AVERAGE | AVERAGE | INTRINSIC | |||||||||||||||
EXERCISE | REMAINING | VALUE | |||||||||||||||
PRICE | CONTRACTUAL | ||||||||||||||||
PER SHARE | TERM (YEARS) | ||||||||||||||||
Options Outstanding, December 31, 2013 | 11,992,811 | $ | 53.64 | ||||||||||||||
Granted | 386,749 | 60.85 | |||||||||||||||
Exercised | (2,515,769 | ) | 50.7 | ||||||||||||||
Forfeited, Expired or Cancelled | (192,710 | ) | 53.54 | ||||||||||||||
Options Outstanding, December 31, 2014 | 9,671,081 | $ | 54.7 | 5.1 | $ | 132.6 | |||||||||||
Options Exercisable, December 31, 2014 | 7,642,521 | $ | 55.82 | 4.5 | $ | 96.9 | |||||||||||
Unvested Options | |||||||||||||||||
Changes in Nonvested Stock | The following is a summary of changes in nonvested stock options for the year ended December 31, 2014. | ||||||||||||||||
TABLE 104: CHANGES IN NONVESTED STOCK OPTIONS | |||||||||||||||||
NONVESTED OPTIONS | SHARES | WEIGHTED- | |||||||||||||||
AVERAGE | |||||||||||||||||
GRANT- | |||||||||||||||||
DATE FAIR | |||||||||||||||||
VALUE | |||||||||||||||||
PER SHARE | |||||||||||||||||
Nonvested at December 31, 2013 | 3,303,826 | $ | 13.4 | ||||||||||||||
Granted | 386,749 | 16.22 | |||||||||||||||
Vested | (1,579,414 | ) | 13.85 | ||||||||||||||
Forfeited or Cancelled | (82,601 | ) | 13.09 | ||||||||||||||
Nonvested at December 31, 2014 | 2,028,560 | $ | 13.6 | ||||||||||||||
Restricted Stock Unit Awards | |||||||||||||||||
Status of Outstanding Restricted Stock Unit Awards 2012 Plan and the 2002 Plan | A summary of the status of outstanding restricted stock unit awards under the 2012 Plan and the 2002 Plan at December 31, 2013, and changes during the year then ended, is presented in the table below. | ||||||||||||||||
TABLE 106: OUTSTANDING RESTRICTED STOCK UNIT AWARDS | |||||||||||||||||
($ In Millions) | NUMBER | AGGREGATE | |||||||||||||||
INTRINSIC | |||||||||||||||||
VALUE | |||||||||||||||||
Restricted Stock Unit Awards Outstanding, December 31, 2013 | 3,478,886 | $ | 215.3 | ||||||||||||||
Granted | 1,086,241 | ||||||||||||||||
Distributed | (1,015,253 | ) | |||||||||||||||
Forfeited | (167,965 | ) | |||||||||||||||
Stock and Stock Unit Awards Outstanding, December 31, 2014 | 3,381,909 | $ | 227.9 | ||||||||||||||
Units Convertible, December 31, 2014 | 187,010 | $ | 12.6 | ||||||||||||||
Changes in Nonvested Restricted Stock Unit Awards | The following is a summary of nonvested restricted stock unit awards at December 31, 2013, and changes during the year then ended. | ||||||||||||||||
TABLE 107: NONVESTED RESTRICTED STOCK UNIT AWARDS | |||||||||||||||||
NONVESTED RESTRICTED | NUMBER | WEIGHTED | WEIGHTED | ||||||||||||||
STOCK UNITS | AVERAGE | AVERAGE | |||||||||||||||
GRANT- | REMAINING | ||||||||||||||||
DATE FAIR | VESTING | ||||||||||||||||
VALUE | TERM | ||||||||||||||||
PER UNIT | (YEARS) | ||||||||||||||||
Nonvested at December 31, 2013 | 3,297,827 | $ | 49.76 | 2 | |||||||||||||
Granted | 1,086,241 | 61.17 | |||||||||||||||
Vested | (1,021,204 | ) | 50.92 | ||||||||||||||
Forfeited | (167,965 | ) | 52.18 | ||||||||||||||
Nonvested at December 31, 2014 | 3,194,899 | $ | 53.14 | 1.9 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Notional and Fair Value Amounts of Client-related and Trading Derivative Financial Instruments | The following table shows the notional and fair values of client-related and trading derivative financial instruments. Notional amounts of derivative financial instruments do not represent credit risk, and are not recorded in the consolidated balance sheet. They are used merely to express the volume of this activity. Northern Trust’s credit-related risk of loss is limited to the positive fair value of the derivative instrument, which is significantly less than the notional amount. | ||||||||||||||||||||||||||||||||||||
TABLE 108: NOTIONAL AND FAIR VALUES OF CLIENT-RELATED AND TRADING DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||||||||
DECEMBER 31, 2014 | DECEMBER 31, 2013 | ||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE | ||||||||||||||||||||||||||||||||||||
(In Millions) | NOTIONAL | ASSET | LIABILITY | NOTIONAL | ASSET | LIABILITY | |||||||||||||||||||||||||||||||
VALUE | VALUE | ||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 257,568.70 | $ | 4,149.50 | $ | 4,072.00 | $ | 243,135.00 | $ | 2,844.70 | $ | 2,846.20 | |||||||||||||||||||||||||
Interest Rate Contracts | 5,353.80 | 105.5 | 101.3 | 5,001.70 | 122.8 | 117 | |||||||||||||||||||||||||||||||
Total | $ | 262,922.50 | $ | 4,255.00 | $ | 4,173.30 | $ | 248,136.70 | $ | 2,967.50 | $ | 2,963.20 | |||||||||||||||||||||||||
Location and Amount of Gains and Losses Recorded in Consolidated Statements of Income | The following table shows the location and amount of gains and losses recorded in the consolidated statement of income for the years ended December 31, 2014, 2013, and 2012. | ||||||||||||||||||||||||||||||||||||
TABLE 109: LOCATION AND AMOUNT OF GAINS AND LOSSES RECORDED IN INCOME | |||||||||||||||||||||||||||||||||||||
(In Millions) | LOCATION OF DERIVATIVE | AMOUNT OF DERIVATIVE GAIN/ | |||||||||||||||||||||||||||||||||||
GAIN/(LOSS) RECOGNIZED | (LOSS) RECOGNIZED IN INCOME DECEMBER 31, | ||||||||||||||||||||||||||||||||||||
IN INCOME | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Foreign Exchange Trading Income | $ | 210.1 | $ | 244.4 | $ | 206.1 | ||||||||||||||||||||||||||||||
Interest Rate Contracts | Security Commissions and Trading Income | 9.3 | 12.7 | 11.6 | |||||||||||||||||||||||||||||||||
Total | $ | 219.4 | $ | 257.1 | $ | 217.7 | |||||||||||||||||||||||||||||||
Types and Classifications of Derivative Instruments | The following table identifies the types and classifications of derivative instruments formally designated as hedges under GAAP and used by Northern Trust to manage risk, their notional and fair values, and the respective risks addressed. | ||||||||||||||||||||||||||||||||||||
TABLE 110: NOTIONAL AND FAIR VALUES OF DESIGNATED RISK MANAGEMENT DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE | ||||||||||||||||||||||||||||||||||||
(In Millions) | DERIVATIVE | RISK | NOTIONAL | ASSET | LIABILITY | NOTIONAL | ASSET | LIABILITY | |||||||||||||||||||||||||||||
INSTRUMENT | CLASSIFICATION | VALUE | VALUE | ||||||||||||||||||||||||||||||||||
FAIR VALUE HEDGES | |||||||||||||||||||||||||||||||||||||
Available for Sale Investment Securities | Interest Rate Swap Contracts | Interest Rate | $ | 2,859.50 | $ | 12.7 | $ | 28.5 | $ | 3,296.90 | $ | 31.5 | $ | 44.8 | |||||||||||||||||||||||
Senior Notes and Long-Term Subordinated Debt | Interest Rate Swap Contracts | Interest Rate | 1,250.00 | 112.8 | 2 | 1,250.00 | 83.6 | 33.4 | |||||||||||||||||||||||||||||
CASH FLOW HEDGES | |||||||||||||||||||||||||||||||||||||
Forecasted Foreign Currency Denominated Transactions | Foreign Exchange Contracts | Foreign Currency | 344.9 | 6 | 14.8 | 314 | 10.2 | 5.5 | |||||||||||||||||||||||||||||
Available for Sale Investment Securities | Interest Rate Swap Contracts | Interest Rate | 10 | – | – | – | – | – | |||||||||||||||||||||||||||||
Available for Sale Investment Securities | Interest Rate Options | Interest Rate | 625 | 1.3 | – | – | – | – | |||||||||||||||||||||||||||||
Contracts | |||||||||||||||||||||||||||||||||||||
NET INVESTMENT HEDGES | |||||||||||||||||||||||||||||||||||||
Net Investments in Non-U.S. Affiliates | Foreign Exchange Contracts | Foreign Currency | 1,795.40 | 118.9 | 3.4 | 1,684.90 | 9.8 | 52.8 | |||||||||||||||||||||||||||||
Total | $ | 6,884.80 | $ | 251.7 | $ | 48.7 | $ | 6,545.80 | $ | 135.1 | $ | 136.5 | |||||||||||||||||||||||||
Gains/Losses of Derivative Financial Instruments | The following table shows the location and amount of derivative gains and losses recorded in the consolidated statement of income related to fair value hedges for the years ended December 31, 2014, 2013, and 2012. | ||||||||||||||||||||||||||||||||||||
TABLE 111: LOCATION AND AMOUNT OF DERIVATIVE GAINS AND LOSSES RECORDED IN INCOME | |||||||||||||||||||||||||||||||||||||
DERIVATIVE | LOCATION OF DERIVATIVE | AMOUNT OF DERIVATIVE GAIN/ | |||||||||||||||||||||||||||||||||||
INSTRUMENT | GAIN/(LOSS) RECOGNIZED | (LOSS) RECOGNIZED IN INCOME | |||||||||||||||||||||||||||||||||||
IN INCOME | DECEMBER 31, | ||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Available for Sale Investment Securities | Interest Rate Swap Contracts | Interest Income | $ | (36.4 | ) | $ | 26.3 | $ | (48.4 | ) | |||||||||||||||||||||||||||
Senior Notes and Long-Term Subordinated Debt | Interest Rate Swap Contracts | Interest Expense | 104 | (44.9 | ) | 54.3 | |||||||||||||||||||||||||||||||
Total | $ | 67.6 | $ | (18.6 | ) | $ | 5.9 | ||||||||||||||||||||||||||||||
Cash Flow Hedge Derivative Gains and Losses Recognized in AOCI and the Amounts Reclassified to Earnings | The following table provides cash flow hedge derivative gains and losses that were recognized in AOCI and the amounts reclassified to earnings during the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
TABLE 112: CASH FLOW HEDGE DERIVATIVE GAINS AND LOSSES RECOGNIZED IN AOCI AND RECLASSIFIED TO EARNINGS | |||||||||||||||||||||||||||||||||||||
FOREIGN EXCHANGE | INTEREST RATE SWAP | INTEREST RATE OPTION | |||||||||||||||||||||||||||||||||||
CONTRACTS | CONTRACTS | CONTRACTS | |||||||||||||||||||||||||||||||||||
(BEFORE TAX) | (BEFORE TAX) | (BEFORE TAX) | |||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Net Gain/(Loss) Recognized | $ | (9.4 | ) | $ | 2.1 | $ | (3.2 | ) | $ | – | $ | – | $ | – | $ | 0.7 | $ | – | $ | – | |||||||||||||||||
in AOCI | |||||||||||||||||||||||||||||||||||||
Net Gain/(Loss) Reclassified from AOCI to Earnings | |||||||||||||||||||||||||||||||||||||
Other Operating Income | 3.3 | (2.1 | ) | (4.6 | ) | – | – | – | – | – | – | ||||||||||||||||||||||||||
Interest Income | – | – | – | – | – | (0.2 | ) | 1.2 | – | – | |||||||||||||||||||||||||||
Other Operating Expense | (0.5 | ) | (2.6 | ) | – | – | – | – | – | – | – | ||||||||||||||||||||||||||
Total | $ | 2.8 | $ | (4.7 | ) | $ | (4.6 | ) | $ | – | $ | – | $ | (0.2 | ) | $ | 1.2 | $ | – | $ | – | ||||||||||||||||
Net Investment Hedge Gains and Losses Recognized in AOCI | The following table provides net investment hedge gains and losses recognized in AOCI during the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||||||
TABLE 113: NET INVESTMENT HEDGE GAINS AND LOSSES RECOGNIZED IN AOCI | |||||||||||||||||||||||||||||||||||||
AMOUNT OF HEDGING | |||||||||||||||||||||||||||||||||||||
INSTRUMENT GAIN/(LOSS) | |||||||||||||||||||||||||||||||||||||
RECOGNIZED IN AOCI | |||||||||||||||||||||||||||||||||||||
(BEFORE TAX) | |||||||||||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 127.4 | $ | (101.6 | ) | ||||||||||||||||||||||||||||||||
Sterling Denominated Subordinated Debt | 15.2 | (5.7 | ) | ||||||||||||||||||||||||||||||||||
Total | $ | 142.6 | $ | (107.3 | ) | ||||||||||||||||||||||||||||||||
Types of Risk Management Derivative Instruments Not Formally Designated as Hedges, Including Notional Amounts and Fair Values | The following table identifies the types of risk management derivative instruments not formally designated as hedges and their notional amounts and fair values. | ||||||||||||||||||||||||||||||||||||
TABLE 114: NOTIONAL AND FAIR VALUES OF NON DESIGNATED RISK MANAGEMENT DERIVATIVE INSTRUMENTS | |||||||||||||||||||||||||||||||||||||
DECEMBER 31, 2014 | DECEMBER 31, 2013 | ||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE | ||||||||||||||||||||||||||||||||||||
(In Millions) | NOTIONAL | ASSET | LIABILITY | NOTIONAL | ASSET | LIABILITY | |||||||||||||||||||||||||||||||
VALUE | VALUE | ||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 246.3 | $ | 0.8 | $ | 5.3 | $ | 168.8 | $ | 1 | $ | 1.2 | |||||||||||||||||||||||||
Total | $ | 246.3 | $ | 0.8 | $ | 5.3 | $ | 168.8 | $ | 1 | $ | 1.2 | |||||||||||||||||||||||||
Gains/Losses of Derivative Financial Instruments | The following table provides the location and amount of gains and losses recorded in the consolidated statement of income for the years ended December 31, 2014, 2013, and 2012 for derivative instruments not formally designated as hedges under GAAP. | ||||||||||||||||||||||||||||||||||||
TABLE 115: LOCATION AND AMOUNT OF GAINS AND LOSSES RECORDED IN INCOME | |||||||||||||||||||||||||||||||||||||
LOCATION OF DERIVATIVE GAIN/ | AMOUNT RECOGNIZED IN INCOME | ||||||||||||||||||||||||||||||||||||
(In Millions) | (LOSS) RECOGNIZED IN INCOME | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Credit Default Swap Contracts | Other Operating Income | $ | — | $ | (0.1 | ) | $ | (2.6 | ) | ||||||||||||||||||||||||||||
Foreign Exchange Contracts | Other Operating Income | (14.3 | ) | (4.0 | ) | 11.3 | |||||||||||||||||||||||||||||||
Total | $ | (14.3 | ) | $ | (4.1 | ) | $ | 8.7 |
Offsetting_of_Assets_and_Liabi1
Offsetting of Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Securities Purchased Under Agreements to Resell and Derivative Assets in the Consolidated Balance Sheet | The following tables provide information regarding the offsetting of derivative assets and of securities purchased under agreements to resell within the consolidated balance sheet as of December 31, 2014 and 2013. | ||||||||||||||||||||
TABLE 116: OFFSETTING OF DERIVATIVE ASSETS AND SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(In Millions) | GROSS | GROSS | NET | GROSS | NET | ||||||||||||||||
RECOGNIZED | AMOUNTS | AMOUNTS | AMOUNTS | AMOUNT(3) | |||||||||||||||||
ASSETS | OFFSET | PRESENTED | NOT OFFSET | ||||||||||||||||||
Derivative Assets(1) | |||||||||||||||||||||
Foreign Exchange Contracts Over the Counter (OTC) | $ | 3,442.80 | $ | 1,889.80 | $ | 1,553.00 | $ | – | $ | 1,553.00 | |||||||||||
Interest Rate Swaps OTC | 183.9 | 32.1 | 151.8 | – | 151.8 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 48.4 | 13.1 | 35.3 | – | 35.3 | ||||||||||||||||
Cross Product Netting Adjustment | – | 6.3 | – | – | – | ||||||||||||||||
Cross Product Collateral Adjustment | – | 315.8 | – | – | – | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 3,675.10 | 2,257.10 | 1,418.00 | – | 1,418.00 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 832.4 | – | 832.4 | – | 832.4 | ||||||||||||||||
Total Derivatives | 4,507.50 | 2,257.10 | 2,250.40 | – | 2,250.40 | ||||||||||||||||
Securities Purchased under Agreements to Resell(2) | $ | 1,000.00 | $ | — | $ | 1,000.00 | $ | 1,000.00 | $ | – | |||||||||||
31-Dec-13 | |||||||||||||||||||||
(In Millions) | GROSS | GROSS | NET | GROSS | NET | ||||||||||||||||
RECOGNIZED | AMOUNTS | AMOUNTS | AMOUNTS | AMOUNT(3) | |||||||||||||||||
ASSETS | OFFSET | PRESENTED | NOT OFFSET | ||||||||||||||||||
Derivative Assets(1) | |||||||||||||||||||||
Foreign Exchange Contracts Over the Counter (OTC) | $ | 2,612.50 | $ | 1,073.30 | $ | 1,539.20 | $ | – | $ | 1,539.20 | |||||||||||
Interest Rate Swaps OTC | 228.8 | 47.5 | 181.3 | – | 181.3 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 9.1 | 9.1 | – | – | – | ||||||||||||||||
Cross Product Netting Adjustment | – | 28.4 | – | – | – | ||||||||||||||||
Cross Product Collateral Adjustment | – | 210.7 | – | – | – | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 2,850.40 | 1,369.00 | 1,481.40 | – | 1,481.40 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 253.2 | – | 253.2 | – | 253.2 | ||||||||||||||||
Total Derivatives | 3,103.60 | 1,369.00 | 1,734.60 | – | 1,734.60 | ||||||||||||||||
Securities Purchased under Agreements to Resell(2) | $ | 500 | $ | – | $ | 500 | $ | 500 | $ | – | |||||||||||
(1) Derivative assets are reported in other assets in the consolidated balance sheet. Other assets (excluding derivative assets) totaled $3,614.7 million and $3,029.4 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
(2) Securities purchased under agreements to resell are reported in federal funds sold and securities purchased under agreements to resell in the consolidated balance sheet. Federal funds sold totaled $62.7 million and $29.6 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
(3) Northern Trust did not possess any cash collateral that was not offset in the consolidated balance sheet that could have been used to offset the net amounts presented in the consolidated balance sheet as of December 31, 2014 and 2013. | |||||||||||||||||||||
Securities Sold Under Agreements to Repurchase and Derivative Liabilities in the Consolidated Balance Sheet | The following tables provide information regarding the offsetting of derivative liabilities and of securities sold under agreements to repurchase within the consolidated balance sheet as of December 31, 2014 and 2013. | ||||||||||||||||||||
TABLE 117: OFFSETTING OF DERIVATIVE LIABILITIES AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(In Millions) | GROSS | GROSS | NET | GROSS | NET | ||||||||||||||||
RECOGNIZED | AMOUNTS | AMOUNTS | AMOUNTS | AMOUNT(2) | |||||||||||||||||
LIABILITIES | OFFSET | PRESENTED | NOT OFFSET | ||||||||||||||||||
Derivative Liabilities(1) | |||||||||||||||||||||
Foreign Exchange Contracts OTC | $ | 3,431.00 | $ | 1,889.80 | $ | 1,541.20 | $ | – | $ | 1,541.20 | |||||||||||
Interest Rate Swaps OTC | 118.7 | 32.1 | 86.6 | – | 86.6 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 13.1 | 13.1 | – | – | – | ||||||||||||||||
Cross Product Netting Adjustment | – | 6.3 | – | – | – | ||||||||||||||||
Cross Product Collateral Adjustment | – | 1,232.00 | – | – | – | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 3,562.80 | 3,173.30 | 389.5 | – | 389.5 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 664.5 | – | 664.5 | – | 664.5 | ||||||||||||||||
Total Derivatives | 4,227.30 | 3,173.30 | 1,054.00 | – | 1,054.00 | ||||||||||||||||
Securities Sold under Agreements to Repurchase | $ | 885.1 | $ | – | $ | 885.1 | $ | 885.1 | $ | – | |||||||||||
31-Dec-13 | |||||||||||||||||||||
(In Millions) | GROSS | GROSS | NET | GROSS | NET | ||||||||||||||||
RECOGNIZED | AMOUNTS | AMOUNTS | AMOUNTS | AMOUNT(2) | |||||||||||||||||
LIABILITIES | OFFSET | PRESENTED | NOT OFFSET | ||||||||||||||||||
Derivative Liabilities(1) | |||||||||||||||||||||
Foreign Exchange Contracts OTC | $ | 2,039.00 | $ | 1,073.30 | $ | 965.7 | $ | – | $ | 965.7 | |||||||||||
Interest Rate Swaps OTC | 163.7 | 47.5 | 116.2 | – | 116.2 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 31.5 | 9.1 | 22.4 | – | 22.4 | ||||||||||||||||
Cross Product Netting Adjustment | – | 28.4 | – | – | – | ||||||||||||||||
Cross Product Collateral Adjustment | – | 767.7 | – | – | – | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 2,234.20 | 1,926.00 | 308.2 | – | 308.2 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 866.7 | – | 866.7 | – | 866.7 | ||||||||||||||||
Total Derivatives | 3,100.90 | 1,926.00 | 1,174.90 | – | 1,174.90 | ||||||||||||||||
Securities Sold under Agreements to Repurchase | $ | 917.3 | $ | – | $ | 917.3 | $ | 917.3 | $ | – | |||||||||||
(1) Derivative liabilities are reported in other liabilities in the consolidated balance sheet. Other liabilities (excluding derivative liabilities) totaled $2,794.1 million and $2,338.4 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
(2) Northern Trust did not place any cash collateral with counterparties that was not offset in the consolidated balance sheet that could have been used to offset the net amounts presented in the consolidated balance sheet as of December 31, 2014 and 2013. |
OffBalanceSheet_Financial_Inst1
Off-Balance-Sheet Financial Instruments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Letters of Credit | The following table shows the contractual amounts of commitments and letters of credit. | ||||||||
TABLE 118: COMMITMENTS AND LETTERS OF CREDIT | DECEMBER 31, | ||||||||
(In Millions) | 2014 | 2013 | |||||||
Legally Binding Commitments to Extend Credit(1) | $ | 35,127.60 | $ | 32,174.80 | |||||
Standby Letters of Credit(2) | 4,468.10 | 4,451.10 | |||||||
Commercial Letters of Credit | 20.8 | 24.8 | |||||||
(1) These amounts exclude $481.4 million and $418.5 million of commitments participated to others at December 31, 2014 and 2013, respectively. | |||||||||
(2) These amounts include $221.4 million and $208.9 million of standby letters of credit secured by cash deposits or participated to others as of December 31, 2014 and 2013, respectively. The weighted average maturity of standby letters of credit was 27 months at December 31, 2014 and 25 months at December 31, 2013. |
Reporting_Segments_and_Related1
Reporting Segments and Related Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Earnings Contribution of Northern Trust's Reporting Segments | The following tables show the earnings contribution of Northern Trust’s reporting segments for the years ended December 31, 2014, 2013, and 2012. | ||||||||||||||||
TABLE 119: CORPORATE AND INSTITUTIONAL SERVICES RESULTS OF OPERATIONS | |||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,584.00 | $ | 1,443.80 | $ | 1,334.10 | |||||||||||
Foreign Exchange Trading Income | 200.4 | 238.8 | 193.5 | ||||||||||||||
Other Noninterest Income | 177.9 | 177.3 | 193.6 | ||||||||||||||
Net Interest Income (FTE) (Note) | 310 | 275.9 | 280.1 | ||||||||||||||
Revenue (FTE) (Note) | 2,272.30 | 2,135.80 | 2,001.30 | ||||||||||||||
Provision for Credit Losses | 5.8 | (3.4 | ) | (2.1 | ) | ||||||||||||
Noninterest Expense | 1,732.80 | 1,657.90 | 1,599.90 | ||||||||||||||
Income before Income Taxes (Note) | 533.7 | 481.3 | 403.5 | ||||||||||||||
Provision for Income Taxes (Note) | 149.4 | 145.6 | 114.3 | ||||||||||||||
Net Income | $ | 384.3 | $ | 335.7 | $ | 289.2 | |||||||||||
Percentage of Consolidated Net Income | 47 | % | 46 | % | 42 | % | |||||||||||
Average Assets | $ | 59,462.90 | $ | 53,308.20 | $ | 49,904.00 | |||||||||||
Note: Stated on an FTE basis. | |||||||||||||||||
TABLE 120: WEALTH MANAGEMENT RESULTS OF OPERATIONS | |||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,248.80 | $ | 1,166.00 | $ | 1,071.40 | |||||||||||
Foreign Exchange Trading Income | 9.7 | 5.6 | 12.6 | ||||||||||||||
Other Noninterest Income | 98.3 | 116.7 | 93.6 | ||||||||||||||
Net Interest Income (FTE) (Note) | 536.1 | 557.7 | 629.9 | ||||||||||||||
Revenue (FTE) (Note) | 1,892.90 | 1,846.00 | 1,807.50 | ||||||||||||||
Provision for Credit Losses | 0.2 | 23.4 | 27.1 | ||||||||||||||
Noninterest Expense | 1,268.70 | 1,215.00 | 1,182.30 | ||||||||||||||
Income before Income Taxes (Note) | 624 | 607.6 | 598.1 | ||||||||||||||
Provision for Income Taxes (Note) | 234.8 | 229.2 | 226.4 | ||||||||||||||
Net Income | $ | 389.2 | $ | 378.4 | $ | 371.7 | |||||||||||
Percentage of Consolidated Net Income | 48 | % | 52 | % | 54 | % | |||||||||||
Average Assets | $ | 23,629.30 | $ | 22,887.60 | $ | 23,917.90 | |||||||||||
Note: Stated on an FTE basis. | |||||||||||||||||
TABLE 121: TREASURY AND OTHER RESULTS OF OPERATIONS | |||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||
Noninterest Income | $ | 6.6 | $ | 8 | $ | 7 | |||||||||||
Net Interest Income (FTE) (Note) | 188.8 | 132 | 121.1 | ||||||||||||||
Revenue (FTE) (Note) | 195.4 | 140 | 128.1 | ||||||||||||||
Noninterest Expense | 133.5 | 120.9 | 96.6 | ||||||||||||||
Income before Income Taxes (Note) | 61.9 | 19.1 | 31.5 | ||||||||||||||
Provision (Benefit) for Income Taxes (Note) | 23.6 | 1.9 | 5.1 | ||||||||||||||
Net Income | $ | 38.3 | $ | 17.2 | $ | 26.4 | |||||||||||
Percentage of Consolidated Net Income | 5 | % | 2 | % | 4 | % | |||||||||||
Average Assets | $ | 20,991.30 | $ | 18,661.90 | $ | 19,153.60 | |||||||||||
Note: Stated on an FTE basis. | |||||||||||||||||
TABLE 122: CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 2,832.80 | $ | 2,609.80 | $ | 2,405.50 | |||||||||||
Foreign Exchange Trading Income | 210.1 | 244.4 | 206.1 | ||||||||||||||
Other Noninterest Income | 282.8 | 302 | 294.2 | ||||||||||||||
Net Interest Income (FTE) (Note) | 1,034.90 | 965.6 | 1,031.10 | ||||||||||||||
Revenue (FTE) (Note) | 4,360.60 | 4,121.80 | 3,936.90 | ||||||||||||||
Provision for Credit Losses | 6 | 20 | 25 | ||||||||||||||
Noninterest Expense | 3,135.00 | 2,993.80 | 2,878.80 | ||||||||||||||
Income before Income Taxes (Note) | 1,219.60 | 1,108.00 | 1,033.10 | ||||||||||||||
Provision for Income Taxes (Note) | 407.8 | 376.7 | 345.8 | ||||||||||||||
Net Income | $ | 811.8 | $ | 731.3 | $ | 687.3 | |||||||||||
Average Assets | $ | 104,083.50 | $ | 94,857.70 | $ | 92,975.50 | |||||||||||
Note: Stated on an FTE basis. The consolidated figures include $29.4 million, $32.5 million, and $40.8 million, of FTE adjustments for 2014, 2013, and 2012, respectively. | |||||||||||||||||
Distribution of Total Assets and Operating Performance | The table below summarizes Northern Trust’s performance based on the allocation process described above without regard to guarantors or the location of collateral. | ||||||||||||||||
TABLE 123: DISTRIBUTION OF TOTAL ASSETS AND OPERATING PERFORMANCE | |||||||||||||||||
(In Millions) | TOTAL ASSETS | TOTAL | INCOME BEFORE | NET INCOME | |||||||||||||
REVENUE | INCOME TAXES | ||||||||||||||||
2014 | |||||||||||||||||
Non-U.S. | $ | 28,326.10 | $ | 1,341.80 | $ | 446.5 | $ | 322.7 | |||||||||
U.S. | 81,620.40 | 2,989.40 | 743.7 | 489.1 | |||||||||||||
Total | $ | 109,946.50 | $ | 4,331.20 | $ | 1,190.20 | $ | 811.8 | |||||||||
2013 | |||||||||||||||||
Non-U.S. | $ | 30,241.30 | $ | 1,101.00 | $ | 272.4 | $ | 201.3 | |||||||||
U.S. | 72,706.00 | 2,988.30 | 803.1 | 530 | |||||||||||||
Total | $ | 102,947.30 | $ | 4,089.30 | $ | 1,075.50 | $ | 731.3 | |||||||||
2012 | |||||||||||||||||
Non-U.S. | $ | 29,198.40 | $ | 992.5 | $ | 194.9 | $ | 147.6 | |||||||||
U.S. | 68,265.40 | 2,903.60 | 797.4 | 539.7 | |||||||||||||
Total | $ | 97,463.80 | $ | 3,896.10 | $ | 992.3 | $ | 687.3 | |||||||||
Note: Total revenue is comprised of net interest income and noninterest income. | |||||||||||||||||
Regulatory_Capital_Requirement1
Regulatory Capital Requirements (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Risk-Based Capital Amounts and Ratios for Northern Trust on Consolidated Basis and for Bank | The table below summarizes the risk-based capital amounts and ratios for Northern Trust on a consolidated basis and for the Bank. | ||||||||||||||||||||||||
TABLE 124: RISK-BASED CAPITAL AMOUNTS AND RATIOS | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
($ In Millions) | ADVANCED APPROACH(1) | STANDARDIZED APPROACH(2) | DECEMBER 31, 2013(3) | ||||||||||||||||||||||
BALANCE | RATIO | BALANCE | RATIO | BALANCE | RATIO | ||||||||||||||||||||
Common Equity Tier 1 Capital | |||||||||||||||||||||||||
Northern Trust Corporation | $ | 7,813.30 | 12.4 | % | $ | 7,813.30 | 12.5 | % | $ | 7,853.20 | 12.9 | % | |||||||||||||
The Northern Trust Company | 7,327.30 | 12 | 7,327.30 | 11.8 | 6,765.60 | 11.5 | |||||||||||||||||||
Minimum to qualify as well-capitalized | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||
Tier 1 Capital | |||||||||||||||||||||||||
Northern Trust Corporation | 8,318.00 | 13.2 | 8,317.60 | 13.3 | 7,853.20 | 13.4 | |||||||||||||||||||
The Northern Trust Company | 7,327.30 | 12 | 7,327.30 | 11.8 | 6,765.60 | 11.5 | |||||||||||||||||||
Minimum to qualify as well-capitalized: | |||||||||||||||||||||||||
Northern Trust Corporation | 3,773.80 | 6 | 3,759.10 | 6 | 3,526.40 | 6 | |||||||||||||||||||
The Northern Trust Company | 3,665.80 | 6 | 3,738.00 | 6 | 3,515.20 | 6 | |||||||||||||||||||
Total Capital | |||||||||||||||||||||||||
Northern Trust Corporation | 9,449.20 | 15 | 9,723.00 | 15.5 | 9,294.90 | 15.8 | |||||||||||||||||||
The Northern Trust Company | 8,420.40 | 13.8 | 8,695.10 | 14 | 8,366.20 | 14.3 | |||||||||||||||||||
Minimum to qualify as well-capitalized: | |||||||||||||||||||||||||
Northern Trust Corporation | 6,289.70 | 10 | 6,265.10 | 10 | 5,877.40 | 10 | |||||||||||||||||||
The Northern Trust Company | 6,109.70 | 10 | 6,229.90 | 10 | 5,858.80 | 10 | |||||||||||||||||||
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets) | |||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | 8,317.60 | 7.8 | 7,853.20 | 7.9 | |||||||||||||||||||
The Northern Trust Company | N/A | N/A | 7,327.30 | 6.9 | 6,765.60 | 6.8 | |||||||||||||||||||
Minimum to qualify as well-capitalized: | |||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | 5,340.70 | 5 | 4,953.70 | 5 | |||||||||||||||||||
The Northern Trust Company | N/A | N/A | 5,324.90 | 5 | 4,939.90 | 5 | |||||||||||||||||||
(1) Effective with the second quarter of 2014, Northern Trust exited its parallel run. Accordingly, the December 31, 2014, capital balances and ratios are calculated in compliance with the Basel III Advanced Approach final rules released by the Federal Reserve Board on July 2, 2013. | |||||||||||||||||||||||||
(2) Standardized Approach capital components in 2014 are determined by Basel III phased-in requirements and risk-weighted assets are determined by Basel I requirements. The December 31, 2014, ratios calculated under the Standardized Approach comply with the final rules released by the Federal Reserve Board on July 2, 2013. | |||||||||||||||||||||||||
(3) The December 31, 2013, capital balances and ratios were calculated in accordance with Basel I requirements. |
Northern_Trust_Corporation_Cor1
Northern Trust Corporation (Corporation only) (Tables) (Parent Company) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Parent Company | |||||||||||||
Condensed Balance Sheet | |||||||||||||
TABLE 125: CONDENSED BALANCE SHEET | |||||||||||||
DECEMBER 31, | |||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||
ASSETS | |||||||||||||
Cash on Deposit with Subsidiary Bank | $ | 869.4 | $ | 1,566.40 | |||||||||
Time Deposits with Subsidiary Banks | – | – | |||||||||||
Securities | 2.3 | 5.3 | |||||||||||
Advances to Wholly-Owned Subsidiaries – Banks | 2,273.50 | 2,035.00 | |||||||||||
– Nonbank | 5 | 5 | |||||||||||
Investments in Wholly-Owned Subsidiaries – Banks | 7,604.50 | 7,101.70 | |||||||||||
– Nonbank | 123 | 168.5 | |||||||||||
Buildings and Equipment | – | – | |||||||||||
Other Assets | 605.8 | 608.8 | |||||||||||
Total Assets | $ | 11,483.50 | $ | 11,490.70 | |||||||||
LIABILITIES | |||||||||||||
Senior Notes | $ | 1,497.00 | $ | 1,996.60 | |||||||||
Long Term Debt | 793 | 717.8 | |||||||||||
Floating Rate Capital Debt | 277.2 | 277.1 | |||||||||||
Other Liabilities | 467.4 | 587.2 | |||||||||||
Total Liabilities | 3,034.60 | 3,578.70 | |||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||||
Preferred Stock | 388.5 | – | |||||||||||
Common Stock | 408.6 | 408.6 | |||||||||||
Additional Paid-in Capital | 1,050.90 | 1,035.70 | |||||||||||
Retained Earnings | 7,625.40 | 7,134.80 | |||||||||||
Accumulated Other Comprehensive Loss | (319.7 | ) | (244.3 | ) | |||||||||
Treasury Stock | (704.8 | ) | (422.8 | ) | |||||||||
Total Stockholders’ Equity | 8,448.90 | 7,912.00 | |||||||||||
Total Liabilities and Stockholders’ Equity | $ | 11,483.50 | $ | 11,490.70 | |||||||||
Condensed Statement of Income | |||||||||||||
TABLE 126: CONDENSED STATEMENT OF INCOME | |||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
OPERATING INCOME | |||||||||||||
Dividends – Bank Subsidiaries | $ | 300 | $ | 880 | $ | 440 | |||||||
– Nonbank Subsidiaries | 3.8 | 21.7 | 26.2 | ||||||||||
Intercompany Interest and Other Charges | 42.9 | 33.2 | 30 | ||||||||||
Interest and Other Income | (0.3 | ) | 9 | 10.6 | |||||||||
Total Operating Income | 346.4 | 943.9 | 506.8 | ||||||||||
OPERATING EXPENSES | |||||||||||||
Interest Expense | 66.6 | 78.3 | 74.9 | ||||||||||
Other Operating Expenses | 17 | 20.8 | 13 | ||||||||||
Total Operating Expenses | 83.6 | 99.1 | 87.9 | ||||||||||
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries | 262.8 | 844.8 | 418.9 | ||||||||||
Benefit for Income Taxes | 16.6 | 24.2 | 21.1 | ||||||||||
Income before Equity in Undistributed Net Income of Subsidiaries | 279.4 | 869 | 440 | ||||||||||
Equity in Undistributed Net Income of Subsidiaries – Banks | 522.1 | (152.5 | ) | 266.9 | |||||||||
– Nonbank | 10.3 | 14.8 | (19.6 | ) | |||||||||
Net Income | $ | 811.8 | $ | 731.3 | $ | 687.3 | |||||||
Preferred Stock Dividends | 9.5 | – | – | ||||||||||
Net Income Applicable to Common Stock | $ | 802.3 | $ | 731.3 | $ | 687.3 | |||||||
Condensed Statement of Cash Flows | |||||||||||||
TABLE 127: CONDENSED STATEMENT OF CASH FLOWS | FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||
(In Millions) | 2014 | 2013 | 2012 | ||||||||||
OPERATING ACTIVITIES: | |||||||||||||
Net Income | $ | 811.8 | $ | 731.3 | $ | 687.3 | |||||||
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities: | |||||||||||||
Equity in Undistributed Net Income of Subsidiaries | (532.4 | ) | 131 | (247.3 | ) | ||||||||
Change in Prepaid Expenses | 0.2 | (1.1 | ) | (0.9 | ) | ||||||||
Change in Accrued Income Taxes | (30.7 | ) | (18.1 | ) | 34.7 | ||||||||
Other, net | 56.1 | 102.6 | (36.0 | ) | |||||||||
Net Cash Provided by Operating Activities | 305 | 945.7 | 437.8 | ||||||||||
INVESTING ACTIVITIES: | |||||||||||||
Change in Time Deposits with Banks | – | 1,691.40 | (422.2 | ) | |||||||||
Purchases of Securities – Available for Sale | – | – | (0.4 | ) | |||||||||
Proceeds from Sale, Maturity and Redemption of Securities – Available for Sale | 2.9 | 0.2 | 94.3 | ||||||||||
Change in Capital Investments in Subsidiaries | – | (13.0 | ) | 0.3 | |||||||||
Advances to Wholly-Owned Subsidiaries | (238.5 | ) | (1,000.0 | ) | – | ||||||||
Other, net | 1.1 | 1.8 | – | ||||||||||
Net Cash Provided by (Used in) Investing Activities | (234.5 | ) | 680.4 | (328.0 | ) | ||||||||
FINANCING ACTIVITIES: | |||||||||||||
Change in Senior Notes and Long-Term Debt | (500.0 | ) | 317.9 | 300 | |||||||||
Proceeds from Issuance of Preferred Stock – Series C | 388.5 | – | – | ||||||||||
Treasury Stock Purchased | (480.7 | ) | (309.7 | ) | (162.4 | ) | |||||||
Net Proceeds from Stock Options | 127.5 | 146.2 | 106.8 | ||||||||||
Cash Dividends Paid on Common Stock | (302.9 | ) | (220.6 | ) | (354.3 | ) | |||||||
Other, net | 0.1 | – | 0.1 | ||||||||||
Net Cash Used in Financing Activities | (767.5 | ) | (66.2 | ) | (109.8 | ) | |||||||
Net Change in Cash on Deposit with Subsidiary Bank | (697.0 | ) | 1,559.90 | – | |||||||||
Cash on Deposit with Subsidiary Bank at Beginning of Year | 1,566.40 | 6.5 | 6.5 | ||||||||||
Cash on Deposit with Subsidiary Bank at End of Year | $ | 869.4 | $ | 1,566.40 | $ | 6.5 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Significant Accounting Policies [Line Items] | |
Number of reporting segments | 3 |
Maximum limit of individual homogeneous loans collective evaluation for impairment and excluded from impaired loan disclosures | $250,000 |
Lower Limit | |
Significant Accounting Policies [Line Items] | |
Days contractually past due for interest and principal and the loan is not well-secured and in the process of collection | 90 days |
Loans and leases receivable nonperforming to performing status | 6 months |
Restructured loans and leases receivable nonperforming to performing status | 6 months |
Period for which troubled debt restructurings with modified terms is performing before ceasing to be classified as impaired loan | 6 months |
Troubled debt restructuring loans and leases receivable to Performing status | 6 months |
Lower Limit | Equipment | |
Significant Accounting Policies [Line Items] | |
Charge for depreciation, range of life | 3 years |
Lower Limit | Leasehold Improvements | |
Significant Accounting Policies [Line Items] | |
Charge for depreciation, range of life | The shorter of the lease term or 15 years. |
Lower Limit | Computer Software | |
Significant Accounting Policies [Line Items] | |
Software, useful life | 3 years |
Upper Limit | |
Significant Accounting Policies [Line Items] | |
Number of days past due for disclosure purposes to be categorized as a current | 29 days |
Upper Limit | Buildings | |
Significant Accounting Policies [Line Items] | |
Charge for depreciation, range of life | 30 years |
Upper Limit | Equipment | |
Significant Accounting Policies [Line Items] | |
Charge for depreciation, range of life | 10 years |
Upper Limit | Leasehold Improvements | |
Significant Accounting Policies [Line Items] | |
Charge for depreciation, range of life | 15 years |
Upper Limit | Computer Software | |
Significant Accounting Policies [Line Items] | |
Software, useful life | 10 years |
Wealth Management | |
Significant Accounting Policies [Line Items] | |
Services provided by business units, states | 18 |
Minimum assets requirement to be managed | $200,000,000 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available for sale securities portfolio, value | $29,558,500,000 | $28,392,800,000 | |
Trading account securities | 4,700,000 | 1,700,000 | |
Settlement of contingent consideration | 55,300,000 | ||
Transfers into Level 3 assets | 0 | 0 | |
Transfers out of Level 3 assets | 0 | 0 | |
Transfers into Level 3 liabilities | 0 | 0 | |
Transfers out of Level 3 liabilities | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Number of available for sale securities portfolio | 881 | 831 | |
Available for sale securities portfolio, value | 25,000,000,000 | 26,400,000,000 | |
Loans | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial Instrument, fair value | 14,200,000 | 34,000,000 | |
Other Real Estate Owned | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial Instrument, fair value | 4,100,000 | 1,400,000 | |
External Pricing | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Number of available for sale securities portfolio | 881 | 829 | |
Available for sale securities portfolio, value | 26,300,000,000 | ||
Trading account securities | 4,700,000 | 1,700,000 | |
Internal Pricing | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Number of available for sale securities portfolio | 2 | ||
Available for sale securities portfolio, value | $57,400,000 |
Valuation_Techniques_Significa
Valuation Techniques, Significant Unobservable Inputs, and Quantitative Information (Detail) (Fair Value, Inputs, Level 3, Auction Rate Securities, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Financial instrument, fair value | 18.1 |
Group One | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Valuation Technique | Discounted Cash Flow |
Unobservable Inputs | Remaining lives |
Group Two | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Valuation Technique | Discounted Cash Flow |
Unobservable Inputs | Discount rates |
Lower Limit | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Financial instrument remaining lives | 1 year 4 months 24 days |
Financial instrument discount rate | 0.20% |
Upper Limit | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Financial instrument remaining lives | 8 years 7 months 6 days |
Financial instrument discount rate | 8.10% |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis Segregated by Fair Value Hierarchy Level (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | $29,558.50 | $28,392.80 | ||
Trading Account | 4.7 | 1.7 | ||
Contingent Consideration | 55.4 | |||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Total Available for Sale and Trading Securities | 29,563.20 | 28,394.50 | ||
Contingent Consideration | 55.4 | |||
Fair Value, Measurements, Recurring | Securities Investment | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 29,558.50 | 28,392.80 | ||
Trading Account | 4.7 | 1.7 | ||
Fair Value, Measurements, Recurring | Securities Investment | U.S. Government | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 4,506.90 | 1,917.90 | ||
Fair Value, Measurements, Recurring | Securities Investment | Obligations of States and Political Subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 4.6 | 4.6 | ||
Fair Value, Measurements, Recurring | Securities Investment | U.S. Government Sponsored Agency | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 16,389.20 | 17,528 | ||
Fair Value, Measurements, Recurring | Securities Investment | Non-U.S. Government | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 310.4 | 310.6 | ||
Fair Value, Measurements, Recurring | Securities Investment | Corporate Debt | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 3,577.70 | 3,524.50 | ||
Fair Value, Measurements, Recurring | Securities Investment | Covered Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 1,907.50 | 1,943.90 | ||
Fair Value, Measurements, Recurring | Securities Investment | Supranational and Non-U.S. Agency Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 360.6 | 410 | ||
Fair Value, Measurements, Recurring | Securities Investment | Residential Mortgage-Backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 6.4 | 48.1 | ||
Fair Value, Measurements, Recurring | Securities Investment | Other Asset-Backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 2,321.30 | 2,391.80 | ||
Fair Value, Measurements, Recurring | Securities Investment | Auction Rate Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 18.1 | 98.9 | ||
Fair Value, Measurements, Recurring | Securities Investment | Others | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 155.8 | 214.5 | ||
Fair Value, Measurements, Recurring | Other Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Assets | 2,250.40 | 1,734.60 | ||
Fair Value, Measurements, Recurring | Other Assets | Foreign Exchange Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Assets | 4,275.20 | 2,865.70 | ||
Fair Value, Measurements, Recurring | Other Assets | Interest Rate Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Assets | 232.3 | |||
Fair Value, Measurements, Recurring | Other Assets | Interest Rate Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Assets | 237.9 | |||
Fair Value, Measurements, Recurring | Other Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Liabilities | 1,054 | 1,174.90 | ||
Fair Value, Measurements, Recurring | Other Liabilities | Foreign Exchange Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Liabilities | 4,095.50 | 2,905.70 | ||
Fair Value, Measurements, Recurring | Other Liabilities | Interest Rate Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Liabilities | 131.8 | |||
Fair Value, Measurements, Recurring | Other Liabilities | Interest Rate Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Liabilities | 195.2 | |||
Fair Value, Measurements, Recurring | Subject to master netting arrangement or similar arrangement | Other Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Assets | -2,257.10 | [1] | -1,369 | [2] |
Fair Value, Measurements, Recurring | Subject to master netting arrangement or similar arrangement | Other Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Liabilities | -3,173.30 | [1] | -1,926 | [2] |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Total Available for Sale and Trading Securities | 4,506.90 | 1,917.90 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Securities Investment | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 4,506.90 | 1,917.90 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Securities Investment | U.S. Government | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 4,506.90 | 1,917.90 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Total Available for Sale and Trading Securities | 25,038.20 | 26,377.70 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 25,033.50 | 26,376 | ||
Trading Account | 4.7 | 1.7 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Obligations of States and Political Subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 4.6 | 4.6 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | U.S. Government Sponsored Agency | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 16,389.20 | 17,528 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Non-U.S. Government | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 310.4 | 310.6 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Corporate Debt | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 3,577.70 | 3,524.50 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Covered Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 1,907.50 | 1,943.90 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Supranational and Non-U.S. Agency Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 360.6 | 410 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Residential Mortgage-Backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 6.4 | 48.1 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Other Asset-Backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 2,321.30 | 2,391.80 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Others | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 155.8 | 214.5 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Assets | 4,507.50 | 3,103.60 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Assets | Foreign Exchange Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Assets | 4,275.20 | 2,865.70 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Assets | Interest Rate Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Assets | 232.3 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Assets | Interest Rate Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Assets | 237.9 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Liabilities | 4,227.30 | 3,100.90 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Liabilities | Foreign Exchange Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Liabilities | 4,095.50 | 2,905.70 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Liabilities | Interest Rate Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Liabilities | 131.8 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Liabilities | Interest Rate Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Derivative Liabilities | 195.2 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Total Available for Sale and Trading Securities | 18.1 | 98.9 | ||
Contingent Consideration | 55.4 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Securities Investment | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | 18.1 | 98.9 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Securities Investment | Auction Rate Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Available for Sale | $18.10 | $98.90 | ||
[1] | Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2014, derivative assets and liabilities shown above also include reductions of $315.8 million and $1,232.0 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. | |||
[2] | Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2013, derivative assets and liabilities shown above also include reductions of $210.7 million and $767.7 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. |
Assets_and_Liabilities_Measure1
Assets and Liabilities Measured at Fair Value on Recurring Basis Segregated by Fair Value Hierarchy Level (Parenthetical) (Detail) (Subject to master netting arrangement or similar arrangement, Fair Value, Measurements, Recurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Reduction in derivatives due to cash collateral received from and deposited with derivative counterparties | $1,200 | $767.70 |
Derivative Financial Instruments, Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Reduction in derivatives due to cash collateral received from and deposited with derivative counterparties | $315.80 | $210.70 |
Changes_in_Level_3_Assets_Deta
Changes in Level 3 Assets (Detail) (Auction Rate Securities, USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Auction Rate Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Assets Beginning Balance | $98.90 | $97.80 | ||
Total Gains (Losses): | ||||
Included in Earnings | 4.4 | [1] | 0.1 | [1] |
Included in Other Comprehensive Income | -1.7 | [2] | 3.8 | [2] |
Purchases, Issuances, Sales, and Settlements: | ||||
Sales | -55.7 | -0.6 | ||
Settlements | -27.8 | -2.2 | ||
Fair Value Assets Ending Balance | $18.10 | $98.90 | ||
[1] | Realized gains for the year ended December 31, 2014, of $4.4 million represents gains from the sale of securities of $1.7 million and redemptions by issuers of $2.7 million. Realized gains for the year ended December 31, 2013, of $0.1 million represents gains from redemptions by issuers. Gains on sales are recorded in investment security gains (losses) and gains on redemptions are recorded in interest income within the consolidated statement of income. | |||
[2] | Unrealized gains (losses) are included in net unrealized gains (losses) on securities available for sale, within the consolidated statement of comprehensive income. |
Changes_in_Level_3_Assets_Pare
Changes in Level 3 Assets (Parenthetical) (Detail) (Auction Rate Securities, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized gains (losses) on securities | $4.40 | |
Redemptions by Issuers | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized gains (losses) on securities | 2.7 | 0.1 |
Sales of Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized gains (losses) on securities | $1.70 |
Changes_in_Level_3_Liabilities
Changes in Level 3 Liabilities (Detail) (Contingent Consideration, USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Contingent Consideration | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Liabilities Beginning Balance | $55.40 | $50.10 | ||
Total (Gains) and Losses: | ||||
Included in Earnings | -0.1 | [1] | 5.3 | [1] |
Purchases, Issuances, Sales, and Settlements: | ||||
Settlements | -55.3 | |||
Fair Value Liabilities Ending Balance | 55.4 | |||
Unrealized (Gains) Losses Included in Earnings Related to Financial Instruments Held at December 31 | $5.30 | [1] | ||
[1] | Gains (losses) are recorded in other operating income (expense) within the consolidated statement of income. |
Valuation_Techniques_Significa1
Valuation Techniques, Significant Unobservable Inputs, Quantitative Information Non-recurring Basis (Detail) (Fair Value, Inputs, Level 3, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Loans | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Financial Instrument, fair value | $14.20 |
Valuation Technique | Market Approach |
Unobservable Input | Discount to reflect realizable value |
Other Real Estate Owned | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Financial Instrument, fair value | $4.10 |
Valuation Technique | Market Approach |
Unobservable Input | Discount to reflect realizable value |
Lower Limit | Loans | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Range of Discounts Applied | 15.00% |
Lower Limit | Other Real Estate Owned | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Range of Discounts Applied | 15.00% |
Upper Limit | Loans | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Range of Discounts Applied | 25.00% |
Upper Limit | Other Real Estate Owned | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Range of Discounts Applied | 20.00% |
Book_and_Fair_Values_of_All_Fi
Book and Fair Values of All Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | ||||||
ASSETS | ||||||
Cash and Due from Banks | $3,050.60 | $3,162.40 | $3,752.70 | $4,315.30 | ||
Federal Funds Sold and Resell Agreements | 1,062.70 | 529.6 | ||||
Interest-Bearing Deposits with Banks | 14,928.30 | 19,397.40 | ||||
Federal Reserve Deposits | 17,386.30 | 12,911.50 | ||||
Securities | ||||||
Available for Sale | 29,558.50 | 28,392.80 | ||||
Held to Maturity | 4,170.80 | 2,325.80 | ||||
Trading Account | 4.7 | 1.7 | ||||
Loans (excluding Leases) | ||||||
Client Security Settlement Receivables | 1,568.80 | 1,355.20 | ||||
Deposits | ||||||
Savings Certificates and Other Time | 1,757.40 | 1,874.40 | ||||
Non-U.S. Offices Interest-Bearing | 47,545 | 48,461.70 | ||||
Federal Funds Purchased | 932.9 | 965.1 | ||||
Securities Sold under Agreements to Repurchase | 885.1 | 917.3 | ||||
Other Borrowings | 1,685.20 | 1,558.60 | ||||
Senior Notes | 1,497 | [1],[2] | 1,996.60 | [1],[2] | ||
Long Term Debt (excluding Leases) | ||||||
Federal Home Loan Bank Borrowings | 135 | |||||
Floating Rate Capital Debt | 277.2 | 277.1 | ||||
Other Liabilities | ||||||
Contingent Consideration | 55.4 | |||||
Asset And Liability Management | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 251.7 | 135.1 | ||||
Liabilities | 48.7 | 136.5 | ||||
Client Related and Trading | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 4,255 | 2,967.50 | ||||
Liabilities | 4,173.30 | 2,963.20 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | ||||||
ASSETS | ||||||
Cash and Due from Banks | 3,050.60 | 3,162.40 | ||||
Federal Funds Sold and Resell Agreements | 1,062.70 | 529.6 | ||||
Interest-Bearing Deposits with Banks | 14,928.30 | 19,397.40 | ||||
Federal Reserve Deposits | 17,386.30 | 12,911.50 | ||||
Securities | ||||||
Available for Sale | 29,558.50 | [3] | 28,392.80 | [4] | ||
Held to Maturity | 4,170.80 | 2,325.80 | ||||
Trading Account | 4.7 | 1.7 | ||||
Loans (excluding Leases) | ||||||
Held for Investment | 30,458 | 28,136.50 | ||||
Held for Sale | 2.5 | |||||
Client Security Settlement Receivables | 1,568.80 | 1,355.20 | ||||
Other Assets | ||||||
Federal Reserve and Federal Home Loan Bank Stock | 207.5 | 194.7 | ||||
Community Development Investments | 209.9 | 228.1 | ||||
Employee Benefit and Deferred Compensation | 143.2 | 132.7 | ||||
Deposits | ||||||
Demand, Noninterest-Bearing, Savings and Money Market | 41,454.60 | 33,762 | ||||
Savings Certificates and Other Time | 1,757.40 | 1,874.40 | ||||
Non-U.S. Offices Interest-Bearing | 47,545 | 48,461.70 | ||||
Federal Funds Purchased | 932.9 | 965.1 | ||||
Securities Sold under Agreements to Repurchase | 885.1 | 917.3 | ||||
Other Borrowings | 1,685.20 | 1,558.60 | ||||
Senior Notes | 1,497 | 1,996.60 | ||||
Long Term Debt (excluding Leases) | ||||||
Subordinated Debt | 1,583.30 | 1,537.30 | ||||
Federal Home Loan Bank Borrowings | 135 | |||||
Floating Rate Capital Debt | 277.2 | 277.1 | ||||
Other Liabilities | ||||||
Standby Letters of Credit | 60.1 | 59.6 | ||||
Contingent Consideration | 55.4 | |||||
Loan Commitments | 28.3 | 35.7 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | Asset And Liability Management | Foreign Exchange Contracts | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 125.7 | 21 | ||||
Liabilities | 23.5 | 59.5 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | Asset And Liability Management | Interest Rate Swaps | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 115.1 | |||||
Liabilities | 78.2 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Asset And Liability Management | Interest Rate Contracts | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 126.8 | |||||
Liabilities | 30.5 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Client Related and Trading | Foreign Exchange Contracts | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 4,149.50 | 2,844.70 | ||||
Liabilities | 4,072 | 2,846.20 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | Client Related and Trading | Interest Rate Contracts | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 105.5 | 122.8 | ||||
Liabilities | 101.3 | 117 | ||||
Estimate of Fair Value, Fair Value Disclosure | ||||||
ASSETS | ||||||
Cash and Due from Banks | 3,050.60 | 3,162.40 | ||||
Federal Funds Sold and Resell Agreements | 1,062.70 | 529.6 | ||||
Interest-Bearing Deposits with Banks | 14,928.30 | 19,397.40 | ||||
Federal Reserve Deposits | 17,386.30 | 12,911.50 | ||||
Securities | ||||||
Available for Sale | 29,558.50 | [3] | 28,392.80 | [4] | ||
Held to Maturity | 4,176.10 | 2,321.40 | ||||
Trading Account | 4.7 | 1.7 | ||||
Loans (excluding Leases) | ||||||
Held for Investment | 30,600.40 | 28,147.20 | ||||
Held for Sale | 2.5 | |||||
Client Security Settlement Receivables | 1,568.80 | 1,355.20 | ||||
Other Assets | ||||||
Federal Reserve and Federal Home Loan Bank Stock | 207.5 | 194.7 | ||||
Community Development Investments | 210.8 | 227.8 | ||||
Employee Benefit and Deferred Compensation | 146.7 | 126.9 | ||||
Deposits | ||||||
Demand, Noninterest-Bearing, Savings and Money Market | 41,454.60 | 33,762 | ||||
Savings Certificates and Other Time | 1,757 | 1,877.10 | ||||
Non-U.S. Offices Interest-Bearing | 47,545 | 48,461.70 | ||||
Federal Funds Purchased | 932.9 | 965.1 | ||||
Securities Sold under Agreements to Repurchase | 885.1 | 917.3 | ||||
Other Borrowings | 1,686.20 | 1,558.60 | ||||
Senior Notes | 1,541.80 | 1,989.30 | ||||
Long Term Debt (excluding Leases) | ||||||
Subordinated Debt | 1,583.40 | 1,563.50 | ||||
Federal Home Loan Bank Borrowings | 137.2 | |||||
Floating Rate Capital Debt | 242.8 | 230.2 | ||||
Other Liabilities | ||||||
Standby Letters of Credit | 60.1 | 59.6 | ||||
Contingent Consideration | 55.4 | |||||
Loan Commitments | 28.3 | 35.7 | ||||
Estimate of Fair Value, Fair Value Disclosure | Asset And Liability Management | Foreign Exchange Contracts | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 125.7 | 21 | ||||
Liabilities | 23.5 | 59.5 | ||||
Estimate of Fair Value, Fair Value Disclosure | Asset And Liability Management | Interest Rate Swaps | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 115.1 | |||||
Liabilities | 78.2 | |||||
Estimate of Fair Value, Fair Value Disclosure | Asset And Liability Management | Interest Rate Contracts | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 126.8 | |||||
Liabilities | 30.5 | |||||
Estimate of Fair Value, Fair Value Disclosure | Client Related and Trading | Foreign Exchange Contracts | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 4,149.50 | 2,844.70 | ||||
Liabilities | 4,072 | 2,846.20 | ||||
Estimate of Fair Value, Fair Value Disclosure | Client Related and Trading | Interest Rate Contracts | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 105.5 | 122.8 | ||||
Liabilities | 101.3 | 117 | ||||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 1 | ||||||
ASSETS | ||||||
Cash and Due from Banks | 3,050.60 | 3,162.40 | ||||
Securities | ||||||
Available for Sale | 4,506.90 | [3] | 1,917.90 | [4] | ||
Other Assets | ||||||
Employee Benefit and Deferred Compensation | 96.7 | 79.3 | ||||
Deposits | ||||||
Demand, Noninterest-Bearing, Savings and Money Market | 41,454.60 | 33,762 | ||||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | ||||||
ASSETS | ||||||
Federal Funds Sold and Resell Agreements | 1,062.70 | 529.6 | ||||
Interest-Bearing Deposits with Banks | 14,928.30 | 19,397.40 | ||||
Federal Reserve Deposits | 17,386.30 | 12,911.50 | ||||
Securities | ||||||
Available for Sale | 25,033.50 | [3] | 26,376 | [4] | ||
Held to Maturity | 4,176.10 | 2,321.40 | ||||
Trading Account | 4.7 | 1.7 | ||||
Loans (excluding Leases) | ||||||
Client Security Settlement Receivables | 1,568.80 | 1,355.20 | ||||
Other Assets | ||||||
Federal Reserve and Federal Home Loan Bank Stock | 207.5 | 194.7 | ||||
Community Development Investments | 210.8 | 227.8 | ||||
Employee Benefit and Deferred Compensation | 50 | 47.6 | ||||
Deposits | ||||||
Savings Certificates and Other Time | 1,757 | 1,877.10 | ||||
Non-U.S. Offices Interest-Bearing | 47,545 | 48,461.70 | ||||
Federal Funds Purchased | 932.9 | 965.1 | ||||
Securities Sold under Agreements to Repurchase | 885.1 | 917.3 | ||||
Other Borrowings | 1,686.20 | 1,558.60 | ||||
Senior Notes | 1,541.80 | 1,989.30 | ||||
Long Term Debt (excluding Leases) | ||||||
Subordinated Debt | 1,583.40 | 1,563.50 | ||||
Federal Home Loan Bank Borrowings | 137.2 | |||||
Floating Rate Capital Debt | 242.8 | 230.2 | ||||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | Asset And Liability Management | Foreign Exchange Contracts | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 125.7 | 21 | ||||
Liabilities | 23.5 | 59.5 | ||||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | Asset And Liability Management | Interest Rate Swaps | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 115.1 | |||||
Liabilities | 78.2 | |||||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | Asset And Liability Management | Interest Rate Contracts | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 126.8 | |||||
Liabilities | 30.5 | |||||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | Client Related and Trading | Foreign Exchange Contracts | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 4,149.50 | 2,844.70 | ||||
Liabilities | 4,072 | 2,846.20 | ||||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | Client Related and Trading | Interest Rate Contracts | ||||||
DERIVATIVE INSTRUMENTS | ||||||
Assets | 105.5 | 122.8 | ||||
Liabilities | 101.3 | 117 | ||||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | ||||||
Securities | ||||||
Available for Sale | 18.1 | [3] | 98.9 | [4] | ||
Loans (excluding Leases) | ||||||
Held for Investment | 30,600.40 | 28,147.20 | ||||
Held for Sale | 2.5 | |||||
Other Liabilities | ||||||
Standby Letters of Credit | 60.1 | 59.6 | ||||
Contingent Consideration | 55.4 | |||||
Loan Commitments | $28.30 | $35.70 | ||||
[1] | Not redeemable prior to maturity. | |||||
[2] | Debt issue costs are recorded as an asset and amortized on a straight-line basis over the life of the Note. | |||||
[3] | Refer to the table located on page 87 for the disaggregation of available for sale securities. | |||||
[4] | Refer to the table located on page 88 for the disaggregation of available for sale securities. |
Reconciliation_of_Amortized_Co
Reconciliation of Amortized Cost to Fair Value of Securities Available for Sale (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investment Holdings [Line Items] | ||
Amortized Cost | $29,514.10 | $28,382.30 |
Gross Unrealized Gains | 110.9 | 174.2 |
Gross Unrealized Losses | 66.5 | 163.7 |
Fair Value | 29,558.50 | 28,392.80 |
U.S. Government | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 4,493.50 | 1,896.70 |
Gross Unrealized Gains | 15.1 | 22.6 |
Gross Unrealized Losses | 1.7 | 1.4 |
Fair Value | 4,506.90 | 1,917.90 |
Obligations of States and Political Subdivisions | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 4.5 | 4.5 |
Gross Unrealized Gains | 0.1 | 0.1 |
Fair Value | 4.6 | 4.6 |
U.S. Government Sponsored Agency | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 16,326.40 | 17,495.20 |
Gross Unrealized Gains | 82.3 | 80.7 |
Gross Unrealized Losses | 19.5 | 47.9 |
Fair Value | 16,389.20 | 17,528 |
Non-U.S. Government | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 309.5 | 307 |
Gross Unrealized Gains | 0.9 | 3.6 |
Fair Value | 310.4 | 310.6 |
Corporate Debt | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 3,617.50 | 3,615.20 |
Gross Unrealized Gains | 1.8 | 10.5 |
Gross Unrealized Losses | 41.6 | 101.2 |
Fair Value | 3,577.70 | 3,524.50 |
Covered Bonds | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 1,899.90 | 1,898.90 |
Gross Unrealized Gains | 7.9 | 50.9 |
Gross Unrealized Losses | 0.3 | 5.9 |
Fair Value | 1,907.50 | 1,943.90 |
Supranational and Non-U.S. Agency Bonds | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 360 | 410 |
Gross Unrealized Gains | 1.5 | 1.7 |
Gross Unrealized Losses | 0.9 | 1.7 |
Fair Value | 360.6 | 410 |
Residential Mortgage-Backed | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 6.9 | 52.4 |
Gross Unrealized Gains | 0.1 | |
Gross Unrealized Losses | 0.5 | 4.4 |
Fair Value | 6.4 | 48.1 |
Other Asset-Backed | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 2,321.80 | 2,390.80 |
Gross Unrealized Gains | 0.5 | 1.4 |
Gross Unrealized Losses | 1 | 0.4 |
Fair Value | 2,321.30 | 2,391.80 |
Auction Rate Securities | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 18.4 | 97.5 |
Gross Unrealized Gains | 0.5 | 2.2 |
Gross Unrealized Losses | 0.8 | 0.8 |
Fair Value | 18.1 | 98.9 |
Others | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 155.7 | 214.1 |
Gross Unrealized Gains | 0.3 | 0.4 |
Gross Unrealized Losses | 0.2 | |
Fair Value | $155.80 | $214.50 |
Remaining_Maturity_of_Securiti
Remaining Maturity of Securities Available for Sale (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Available for Sale - Amortized Cost | ||
Due in One Year or Less | $7,467.40 | $9,552.90 |
Due After One Year Through Five Years | 17,132.70 | 15,011.40 |
Due After Five Years Through Ten Years | 3,394.20 | 2,545.90 |
Due After Ten Years | 1,519.80 | 1,272.10 |
Total | 29,514.10 | 28,382.30 |
Available for Sale - Fair Value | ||
Due in One Year or Less | 7,487.90 | 9,565.70 |
Due After One Year Through Five Years | 17,157.60 | 15,067.20 |
Due After Five Years Through Ten Years | 3,418 | 2,494.10 |
Due After Ten Years | 1,495 | 1,265.80 |
Total | $29,558.50 | $28,392.80 |
Reconciliation_of_Amortized_Co1
Reconciliation of Amortized Cost to Fair Values of Securities Held to Maturity (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $4,170.80 | $2,325.80 |
Gross Unrealized Gains | 26.4 | 12.3 |
Gross Unrealized Losses | 21.1 | 16.7 |
Fair Value | 4,176.10 | 2,321.40 |
Obligations of States and Political Subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 121.9 | 225.2 |
Gross Unrealized Gains | 7.4 | 10.3 |
Fair Value | 129.3 | 235.5 |
U.S. Government Sponsored Agency | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 18.4 | 35.9 |
Gross Unrealized Gains | 1.1 | 1.1 |
Fair Value | 19.5 | 37 |
Non-U.S. Government | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,281.60 | 722 |
Gross Unrealized Gains | 6.6 | 0.8 |
Gross Unrealized Losses | 0.4 | 1.1 |
Fair Value | 1,287.80 | 721.7 |
Certificates of Deposit | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 924.3 | 698.1 |
Gross Unrealized Gains | 0.1 | |
Gross Unrealized Losses | 0.1 | 0.2 |
Fair Value | 924.3 | 697.9 |
Supranational and Non-U.S. Agency Bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,745.80 | 584.7 |
Gross Unrealized Gains | 10.9 | |
Gross Unrealized Losses | 0.5 | 3.2 |
Fair Value | 1,756.20 | 581.5 |
Others | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 78.8 | 59.9 |
Gross Unrealized Gains | 0.3 | 0.1 |
Gross Unrealized Losses | 20.1 | 12.2 |
Fair Value | $59 | $47.80 |
Remaining_Maturity_of_Securiti1
Remaining Maturity of Securities Held to Maturity (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Held to Maturity - Amortized Cost | ||
Due in One Year or Less | $1,503.50 | $1,009.90 |
Due After One Year Through Five Years | 2,602.80 | 1,254.90 |
Due After Five Years Through Ten Years | 23.5 | 26.1 |
Due After Ten Years | 41 | 34.9 |
Amortized Cost | 4,170.80 | 2,325.80 |
Held to Maturity - Fair Value | ||
Due in One Year or Less | 1,504.70 | 1,011.20 |
Due After One Year Through Five Years | 2,622.30 | 1,257 |
Due After Five Years Through Ten Years | 21.5 | 27.1 |
Due After Ten Years | 27.6 | 26.1 |
Total | $4,176.10 | $2,321.40 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Investment | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Investment Security Gains (Losses), net | ($4,300,000) | [1] | ($1,500,000) | [1] | ($1,700,000) | [1] |
Net impairment losses recognized in earnings | 4,200,000 | 0 | 3,300,000 | |||
Gross proceeds from sale of securities | 851,800,000 | 500,000,000 | 2,700,000,000 | |||
Gross realized securities gains | 2,800,000 | 800,000 | 23,500,000 | |||
Gross realized securities losses | 2,900,000 | 2,300,000 | 21,900,000 | |||
Number of securities in an unrealized loss position | 515 | |||||
Total Fair Value | 10,410,800,000 | 10,250,000,000 | ||||
Total Unrealized Losses | 87,600,000 | 180,400,000 | ||||
U.S. Government Sponsored Agency | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Total Unrealized Losses | 41,600,000 | |||||
Others | Community Reinvestment Act CRA | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Total Unrealized Losses | 20,300,000 | |||||
Auction Rate Securities | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Net impairment losses recognized in earnings | 1,600,000 | |||||
Total Unrealized Losses | 800,000 | |||||
Corporate Debt | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Total Unrealized Losses | 19,500,000 | |||||
Percent of corporate debt portfolio | 40.00% | |||||
Non-Agency RMBS | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Net impairment losses recognized in earnings | 1,700,000 | |||||
Non-Agency RMBS | Financing Receivable, Current | Lower Limit | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Expected loss on subprime, Alt-A, prime and 2nd lien portfolios developed using default roll rate | 5.00% | |||||
Non-Agency RMBS | Financing Receivable, Current | Upper Limit | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Expected loss on subprime, Alt-A, prime and 2nd lien portfolios developed using default roll rate | 30.00% | |||||
Non-Agency RMBS | Financing Receivable, 30 to 59 Days Past Due | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Expected loss on subprime, Alt-A, prime and 2nd lien portfolios developed using default roll rate | 30.00% | |||||
Non-Agency RMBS | Financing Receivable, 60 to 89 Days Past Due | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Expected loss on subprime, Alt-A, prime and 2nd lien portfolios developed using default roll rate | 80.00% | |||||
Non-Agency RMBS | Financing Receivable, 90 Days and Greater Past Due | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Expected loss on subprime, Alt-A, prime and 2nd lien portfolios developed using default roll rate | 90.00% | |||||
Non-Agency RMBS | Other Real Estate Owned and Loans in Foreclosure | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Expected loss on subprime, Alt-A, prime and 2nd lien portfolios developed using default roll rate | 100.00% | |||||
Residential Mortgage-Backed | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Total Unrealized Losses | $500,000 | |||||
Number of securities in an unrealized loss position for more than 12 months | 1 | |||||
Other Asset-Backed | Floating Rate Securities | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Percentage of "other asset-backed" securities rated triple-A | 100.00% | |||||
Credit Rating | AAA | |||||
Other Asset-Backed | Floating Rate Securities | Upper Limit | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Average life | 5 years | |||||
[1] | Changes in Other-Than-Temporary-Impairment (OTTI) Losses $ (4.9 ) $ - $ (2.7 ) Noncredit-related OTTI Losses Recorded in (Reclassified from) OCI 0.7 - (0.6 ) Other Security Gains (Losses), net (0.1 ) (1.5 ) 1.6 |
Securities_Continuous_Unrealiz
Securities Continuous Unrealized Loss Position (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | $7,101.70 | $9,473.90 |
Less than 12 Months Unrealized Losses | 26.5 | 145.8 |
12 Months or Longer Fair Value | 3,309.10 | 776.1 |
12 Months or Longer Unrealized Losses | 61.1 | 34.6 |
Total Fair Value | 10,410.80 | 10,250 |
Total Unrealized Losses | 87.6 | 180.4 |
U.S. Government | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 998.2 | 896.4 |
Less than 12 Months Unrealized Losses | 1.7 | 1.4 |
Total Fair Value | 998.2 | 896.4 |
Total Unrealized Losses | 1.7 | 1.4 |
U.S. Government Sponsored Agency | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 2,344.90 | 4,340.80 |
Less than 12 Months Unrealized Losses | 6.6 | 42.6 |
12 Months or Longer Fair Value | 1,730 | 413.7 |
12 Months or Longer Unrealized Losses | 12.9 | 5.3 |
Total Fair Value | 4,074.90 | 4,754.50 |
Total Unrealized Losses | 19.5 | 47.9 |
Non-U.S. Government | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 292.9 | 176.7 |
Less than 12 Months Unrealized Losses | 0.4 | 1.1 |
Total Fair Value | 292.9 | 176.7 |
Total Unrealized Losses | 0.4 | 1.1 |
Corporate Debt | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 1,244.50 | 1,759.50 |
Less than 12 Months Unrealized Losses | 3.9 | 85.4 |
12 Months or Longer Fair Value | 1,338.80 | 267 |
12 Months or Longer Unrealized Losses | 37.7 | 15.8 |
Total Fair Value | 2,583.30 | 2,026.50 |
Total Unrealized Losses | 41.6 | 101.2 |
Covered Bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 142.3 | 278.8 |
Less than 12 Months Unrealized Losses | 0.2 | 5.7 |
12 Months or Longer Fair Value | 10 | 9.9 |
12 Months or Longer Unrealized Losses | 0.1 | 0.2 |
Total Fair Value | 152.3 | 288.7 |
Total Unrealized Losses | 0.3 | 5.9 |
Supranational and Non-U.S. Agency Bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 313.2 | 612.7 |
Less than 12 Months Unrealized Losses | 0.3 | 4.9 |
12 Months or Longer Fair Value | 175.5 | |
12 Months or Longer Unrealized Losses | 1.1 | |
Total Fair Value | 488.7 | 612.7 |
Total Unrealized Losses | 1.4 | 4.9 |
Residential Mortgage-Backed | ||
Investments, Unrealized Loss Position [Line Items] | ||
12 Months or Longer Fair Value | 4.5 | 42 |
12 Months or Longer Unrealized Losses | 0.5 | 4.4 |
Total Fair Value | 4.5 | 42 |
Total Unrealized Losses | 0.5 | 4.4 |
Other Asset-Backed | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 1,297.60 | 677 |
Less than 12 Months Unrealized Losses | 1 | 0.4 |
Total Fair Value | 1,297.60 | 677 |
Total Unrealized Losses | 1 | 0.4 |
Certificates of Deposit | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 438.6 | 684.2 |
Less than 12 Months Unrealized Losses | 0.1 | 0.2 |
Total Fair Value | 438.6 | 684.2 |
Total Unrealized Losses | 0.1 | 0.2 |
Auction Rate Securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 2.4 | 22.1 |
Less than 12 Months Unrealized Losses | 0.2 | 0.1 |
12 Months or Longer Fair Value | 4.7 | 14 |
12 Months or Longer Unrealized Losses | 0.6 | 0.7 |
Total Fair Value | 7.1 | 36.1 |
Total Unrealized Losses | 0.8 | 0.8 |
Others | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | 27.1 | 25.7 |
Less than 12 Months Unrealized Losses | 12.1 | 4 |
12 Months or Longer Fair Value | 45.6 | 29.5 |
12 Months or Longer Unrealized Losses | 8.2 | 8.2 |
Total Fair Value | 72.7 | 55.2 |
Total Unrealized Losses | $20.30 | $12.20 |
Book_Values_Ultimate_Default_R
Book Values, Ultimate Default Rates, and Loss Severity Rates for Non-Agency Residential Mortgage-Backed Securities Portfolio, by Security Type (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $29,514.10 | $28,382.30 |
Non-Agency RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6.9 | |
Weighted Average Ultimate Default Rates | 25.30% | |
Loss Severity Rates - Weighted Average | 81.10% | |
Non-Agency RMBS | Lower Limit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Loss Severity Rates | 32.10% | |
Non-Agency RMBS | Upper Limit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Loss Severity Rates | 99.00% | |
Non-Agency RMBS | Prime | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1.9 | |
Weighted Average Ultimate Default Rates | 5.00% | |
Loss Severity Rates - Weighted Average | 32.10% | |
Non-Agency RMBS | Prime | Lower Limit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Loss Severity Rates | 32.10% | |
Non-Agency RMBS | Prime | Upper Limit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Loss Severity Rates | 32.10% | |
Non-Agency RMBS | 2nd Lien | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $5 | |
Weighted Average Ultimate Default Rates | 32.20% | |
Loss Severity Rates - Weighted Average | 99.00% | |
Non-Agency RMBS | 2nd Lien | Lower Limit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Loss Severity Rates | 99.00% | |
Non-Agency RMBS | 2nd Lien | Upper Limit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Loss Severity Rates | 99.00% |
Credit_Related_Impairment_Loss
Credit Related Impairment Losses Recognized in Earnings on Other Than Temporarily Impaired Securities (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Changes in Other-Than-Temporary Impairment Losses | ($4,900,000) | [1] | ($2,700,000) | [1] | |
Noncredit-related Losses Recorded in / (Reclassified from) OCI | 700,000 | [2] | -600,000 | [2] | |
Net Impairment Losses Recognized in Earnings | ($4,200,000) | $0 | ($3,300,000) | ||
[1] | For initial other-than-temporary impairments in the respective period, the balance includes the excess of the amortized cost over the fair value of the impaired securities. For subsequent impairments of the same security, the balance includes any additional changes in fair value of the security subsequent to its most recently recorded OTTI. | ||||
[2] | For initial other-than-temporary impairments in the respective period, the balance includes the portion of the excess of amortized cost over the fair value of the impaired securities that was recorded in OCI. For subsequent impairments of the same security, the balance includes additional changes in OCI for that security subsequent to its most recently recorded OTTI. |
CreditRelated_Losses_Recognize
Credit-Related Losses Recognized in Earnings on Debt Securities Other-Than-Temporarily Impaired (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Cumulative Credit-Related Losses on Securities Held - Beginning of Year | $8.80 | $42.30 |
Plus: Losses on Newly Identified Impairments | 1.8 | |
Additional Losses on Previously Identified Impairments | 2.4 | |
Less: Current and Prior Period Losses on Securities Sold During the Year | -7.8 | -33.5 |
Cumulative Credit-Related Losses on Securities Held - End of Year | $5.20 | $8.80 |
Recovered_Sheet1
Securities Purchased under Agreements to Resell (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Securities Financing Transaction [Line Items] | ||
Balance at End of Year | $1,000 | $500 |
Average Balance During the Year | 742.1 | 396.3 |
Average Interest Rate Earned During the Year | 0.45% | 0.46% |
Maximum Month-End Balance During the Year | $1,000 | $571.50 |
Securities_Sold_under_Agreemen
Securities Sold under Agreements to Repurchase (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Securities Financing Transaction [Line Items] | ||
Balance at Ending of Year | $885.10 | $917.30 |
Average Balance During the Year | 989.6 | 594.3 |
Average Interest Rate Paid During the Year | 0.04% | 0.07% |
Maximum Month-End Balance During the Year | $1,038.10 | $917.30 |
Amounts_Outstanding_for_Loans_
Amounts Outstanding for Loans and Leases by Segment and Class (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential Real Estate | $9,800 | $10,300 | |
Commercial Real Estate | 3,333.30 | 2,955.80 | |
Lease Financing, net | 916.3 | 975.1 | |
Total Loans and Leases | 31,640.20 | 29,385.50 | |
Allowance for Credit Losses Assigned to Loans and Leases | -267 | -278.1 | -297.9 |
Net Loans and Leases | 31,373.20 | 29,107.40 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial and Institutional | 8,381.90 | 7,375.80 | |
Commercial Real Estate | 3,333.30 | 2,955.80 | |
Lease Financing, net | 916.3 | 975.1 | |
Non-U.S. | 1,530.60 | 954.7 | |
Other | 191.5 | 358.6 | |
Total Loans and Leases | 14,353.60 | 12,620 | |
Allowance for Credit Losses Assigned to Loans and Leases | -143.8 | -140.9 | -166.1 |
Personal | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential Real Estate | 9,782.60 | 10,271.30 | |
Private Client | 7,466.90 | 6,445.60 | |
Other | 37.1 | 48.6 | |
Total Loans and Leases | 17,286.60 | 16,765.50 | |
Allowance for Credit Losses Assigned to Loans and Leases | ($123.20) | ($137.20) | ($131.80) |
Loans_and_Leases_Additional_In
Loans and Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Collateral required on Residential real estate loan, lower limit | 65.00% | ||
Collateral required on Residential real estate loan, upper limit | 80.00% | ||
Draw period for credit line products | 10 years | ||
Other U.S. loans and non-U.S. loans, short duration advances | $1,500,000,000 | $1,300,000,000 | |
Demand deposits | 92,100,000 | 104,100,000 | |
Loans held for sale | 2,500,000 | 0 | |
Interest income that would have been recorded for nonperforming loans | 9,100,000 | 10,600,000 | 11,600,000 |
Undrawn loan commitments and standby letters of credit | 2,400,000 | 3,400,000 | |
Total Loans and Leases | 31,640,200,000 | 29,385,500,000 | |
First Lien | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held by Northern trust | 0.89% | 87.00% | |
Equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Equity credit lines | 1,800,000,000 | 2,000,000,000 | |
Nonperforming Financing Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 82,700,000 | 72,700,000 | |
Performing Financing Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | $68,600,000 | $89,800,000 | |
Residential Real Estate | Re-Defaulted | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Loans and Leases | 0 | 0 |
Components_of_Net_Investments_
Components of Net Investments in Direct Finance and Leveraged Leases (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Direct Finance Leases: | ||
Lease Receivable | $195.40 | $189.40 |
Residual Value | 208.8 | 143.1 |
Initial Direct Costs | 3.6 | 2.5 |
Unearned Income | -39.1 | -31.1 |
Investment in Direct Finance Leases | 368.7 | 303.9 |
Leveraged Leases: | ||
Net Rental Receivable | 413.6 | 544.4 |
Residual Value | 285.6 | 295.6 |
Unearned Income | -151.6 | -168.8 |
Investment in Leveraged Leases | 547.6 | 671.2 |
Lease Financing, net | $916.30 | $975.10 |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments to be Received (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Schedule Of Capital Leases Future Minimum Payments Receivable [Line Items] | |
2015 | $48.40 |
2016 | 40.4 |
2017 | 37.6 |
2018 | 29.8 |
2019 | $17.90 |
Loan_and_Lease_Segment_and_Cla
Loan and Lease Segment and Class Balances Segregated by Borrower Ratings into "One to Three", "Four to Five" and "Six to Nine" (Watch List) Categories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Residential Real Estate | $9,800 | $10,300 |
Commercial Real Estate | 3,333.30 | 2,955.80 |
Lease Financing, net | 916.3 | 975.1 |
Total Loans and Leases | 31,640.20 | 29,385.50 |
1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 16,322.90 | 13,955.80 |
4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 14,680.40 | 14,620.20 |
6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 636.9 | 809.5 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial and Institutional | 8,381.90 | 7,375.80 |
Commercial Real Estate | 3,333.30 | 2,955.80 |
Lease Financing, net | 916.3 | 975.1 |
Non-U.S. | 1,530.60 | 954.7 |
Other | 191.5 | 358.6 |
Total Loans and Leases | 14,353.60 | 12,620 |
Commercial | 1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial and Institutional | 5,340.90 | 4,432.50 |
Commercial Real Estate | 1,371.70 | 1,053.70 |
Lease Financing, net | 552.5 | 685.7 |
Non-U.S. | 636.8 | 442.8 |
Other | 108.1 | 157.7 |
Total Loans and Leases | 8,010 | 6,772.40 |
Commercial | 4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial and Institutional | 2,947.30 | 2,801.50 |
Commercial Real Estate | 1,861.80 | 1,748.70 |
Lease Financing, net | 360.3 | 285 |
Non-U.S. | 892.9 | 511.9 |
Other | 83.4 | 200.9 |
Total Loans and Leases | 6,145.70 | 5,548 |
Commercial | 6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial and Institutional | 93.7 | 141.8 |
Commercial Real Estate | 99.8 | 153.4 |
Lease Financing, net | 3.5 | 4.4 |
Non-U.S. | 0.9 | |
Total Loans and Leases | 197.9 | 299.6 |
Personal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Residential Real Estate | 9,782.60 | 10,271.30 |
Private Client | 7,466.90 | 6,445.60 |
Other | 37.1 | 48.6 |
Total Loans and Leases | 17,286.60 | 16,765.50 |
Personal | 1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Residential Real Estate | 3,148 | 3,204.60 |
Private Client | 5,143.80 | 3,957.60 |
Other | 21.1 | 21.2 |
Total Loans and Leases | 8,312.90 | 7,183.40 |
Personal | 4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Residential Real Estate | 6,207 | 6,563.60 |
Private Client | 2,311.70 | 2,481.20 |
Other | 16 | 27.4 |
Total Loans and Leases | 8,534.70 | 9,072.20 |
Personal | 6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Residential Real Estate | 427.6 | 503.1 |
Private Client | 11.4 | 6.8 |
Total Loans and Leases | $439 | $509.90 |
Balances_and_Delinquency_Statu
Balances and Delinquency Status of Performing and Nonperforming Loans and Leases by Segment and Class as well as Total Other Real Estate Owned and Nonperforming Asset Balances (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Other Real Estate Owned | $16.60 | $11.90 |
Total Nonperforming Assets | 232.3 | 274.7 |
Total Loans and Leases | 31,640.20 | 29,385.50 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 14,353.60 | 12,620 |
Commercial | Commercial and Institutional | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 8,381.90 | 7,375.80 |
Commercial | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 3,333.30 | 2,955.80 |
Commercial | Lease Financing, net | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 916.3 | 975.1 |
Commercial | Non-U.S. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 1,530.60 | 954.7 |
Commercial | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 191.5 | 358.6 |
Personal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 17,286.60 | 16,765.50 |
Personal | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 9,782.60 | 10,271.30 |
Personal | Private Client | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 7,466.90 | 6,445.60 |
Personal | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 37.1 | 48.6 |
Performing Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 31,242.60 | 28,889 |
30-59 Days Past Due | 129.6 | 167.5 |
60-89 Days Past Due | 29.6 | 49.8 |
90 Days or More Past Due | 22.7 | 16.4 |
Total Loans and Leases | 31,424.50 | 29,122.70 |
Performing Financing Receivable | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 14,253.20 | 12,501.80 |
30-59 Days Past Due | 24.1 | 9.1 |
60-89 Days Past Due | 13.8 | 26.7 |
90 Days or More Past Due | 10.4 | 10.1 |
Total Loans and Leases | 14,301.50 | 12,547.70 |
Performing Financing Receivable | Commercial | Commercial and Institutional | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 8,340.50 | 7,332.30 |
30-59 Days Past Due | 14.5 | 5 |
60-89 Days Past Due | 4 | 12.1 |
90 Days or More Past Due | 7.9 | 3.3 |
Total Loans and Leases | 8,366.90 | 7,352.70 |
Performing Financing Receivable | Commercial | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 3,274.30 | 2,881.10 |
30-59 Days Past Due | 9.6 | 4.1 |
60-89 Days Past Due | 9.8 | 14.6 |
90 Days or More Past Due | 2.5 | 6.8 |
Total Loans and Leases | 3,296.20 | 2,906.60 |
Performing Financing Receivable | Commercial | Lease Financing, net | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 916.3 | 975.1 |
Total Loans and Leases | 916.3 | 975.1 |
Performing Financing Receivable | Commercial | Non-U.S. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 1,530.60 | 954.7 |
Total Loans and Leases | 1,530.60 | 954.7 |
Performing Financing Receivable | Commercial | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 191.5 | 358.6 |
Total Loans and Leases | 191.5 | 358.6 |
Performing Financing Receivable | Personal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 16,989.40 | 16,387.20 |
30-59 Days Past Due | 105.5 | 158.4 |
60-89 Days Past Due | 15.8 | 23.1 |
90 Days or More Past Due | 12.3 | 6.3 |
Total Loans and Leases | 17,123 | 16,575 |
Performing Financing Receivable | Personal | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 9,556.30 | 9,934.40 |
30-59 Days Past Due | 49.5 | 129.3 |
60-89 Days Past Due | 9.9 | 15.6 |
90 Days or More Past Due | 4.5 | 2.9 |
Total Loans and Leases | 9,620.20 | 10,082.20 |
Performing Financing Receivable | Personal | Private Client | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 7,396 | 6,404.20 |
30-59 Days Past Due | 56 | 29.1 |
60-89 Days Past Due | 5.9 | 7.5 |
90 Days or More Past Due | 7.8 | 3.4 |
Total Loans and Leases | 7,465.70 | 6,444.20 |
Performing Financing Receivable | Personal | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 37.1 | 48.6 |
Total Loans and Leases | 37.1 | 48.6 |
Nonperforming Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 215.7 | 262.8 |
Nonperforming Financing Receivable | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 52.1 | 72.3 |
Nonperforming Financing Receivable | Commercial | Commercial and Institutional | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 15 | 23.1 |
Nonperforming Financing Receivable | Commercial | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 37.1 | 49.2 |
Nonperforming Financing Receivable | Personal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 163.6 | 190.5 |
Nonperforming Financing Receivable | Personal | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 162.4 | 189.1 |
Nonperforming Financing Receivable | Personal | Private Client | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | $1.20 | $1.40 |
Impaired_Loans_by_Segment_and_
Impaired Loans by Segment and Class (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment | $242.20 | $293.40 | ||
Unpaid principal balance | 301 | 360.5 | ||
Specific allowance | 6.6 | 10.4 | ||
Average recorded investment | 271.2 | [1] | 282.9 | [1] |
Interest income recognized | 3.9 | 3.8 | ||
Commercial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment | 78.9 | 99.5 | ||
Unpaid principal balance | 93.5 | 123.2 | ||
Specific allowance | 5.8 | 8.1 | ||
Average recorded investment | 90.1 | [1] | 102.8 | [1] |
Interest income recognized | 1.3 | 1.3 | ||
Commercial | Commercial and Institutional | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no related specific reserve, recorded investment | 9 | 12.2 | ||
With a related specific reserve, recorded investment | 6.5 | 9.6 | ||
With no related specific reserve, unpaid principal balance | 12 | 18.1 | ||
With a related specific reserve, unpaid principal balance | 6.6 | 12.1 | ||
Specific allowance | 2.9 | 3.6 | ||
With no related specific reserve, average recorded investment | 11.3 | [1] | 11.7 | [1] |
With a related specific reserve, average recorded investment | 9.6 | [1] | 12.5 | [1] |
With no related specific reserve, interest income recognized | 0.1 | 0.2 | ||
With a related specific reserve, interest income recognized | 0 | 0 | ||
Commercial | Commercial Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no related specific reserve, recorded investment | 47 | 46.6 | ||
With a related specific reserve, recorded investment | 12.2 | 26.7 | ||
With no related specific reserve, unpaid principal balance | 52.4 | 57.1 | ||
With a related specific reserve, unpaid principal balance | 18.3 | 31.5 | ||
Specific allowance | 2.9 | 4.5 | ||
With no related specific reserve, average recorded investment | 46.1 | [1] | 42.4 | [1] |
With a related specific reserve, average recorded investment | 18.8 | [1] | 31 | [1] |
With no related specific reserve, interest income recognized | 1 | 0.9 | ||
With a related specific reserve, interest income recognized | 0 | 0 | ||
Commercial | Lease Financing, net | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no related specific reserve, recorded investment | 4.2 | 4.4 | ||
With no related specific reserve, unpaid principal balance | 4.2 | 4.4 | ||
With no related specific reserve, average recorded investment | 4.3 | [1] | 4.5 | [1] |
With a related specific reserve, average recorded investment | 0.7 | [1] | ||
With no related specific reserve, interest income recognized | 0.2 | 0.2 | ||
With a related specific reserve, interest income recognized | 0 | 0 | ||
Personal | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment | 163.3 | 193.9 | ||
Unpaid principal balance | 207.5 | 237.3 | ||
Specific allowance | 0.8 | 2.3 | ||
Average recorded investment | 181.1 | [1] | 180.1 | [1] |
Interest income recognized | 2.6 | 2.5 | ||
Personal | Residential Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no related specific reserve, recorded investment | 160.9 | 185 | ||
With a related specific reserve, recorded investment | 1.4 | 8.1 | ||
With no related specific reserve, unpaid principal balance | 204.8 | 227.8 | ||
With a related specific reserve, unpaid principal balance | 1.4 | 8.7 | ||
Specific allowance | 0.4 | 2.3 | ||
With no related specific reserve, average recorded investment | 176.7 | [1] | 160.2 | [1] |
With a related specific reserve, average recorded investment | 3.3 | [1] | 5.7 | [1] |
With no related specific reserve, interest income recognized | 2.6 | 2.5 | ||
With a related specific reserve, interest income recognized | 0 | 0 | ||
Personal | Private Client | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no related specific reserve, recorded investment | 0.2 | 0.8 | ||
With a related specific reserve, recorded investment | 0.8 | |||
With no related specific reserve, unpaid principal balance | 0.5 | 0.8 | ||
With a related specific reserve, unpaid principal balance | 0.8 | |||
Specific allowance | 0.4 | |||
With no related specific reserve, average recorded investment | 0.5 | [1] | 10.2 | [1] |
With a related specific reserve, average recorded investment | 0.6 | [1] | 4 | [1] |
With a related specific reserve, interest income recognized | $0 | $0 | ||
[1] | Average recorded investments in impaired loans are calculated as the average of the month-end impaired loan balances for the period. |
Number_of_Loans_and_Leases_Mod
Number of Loans and Leases Modified in TDRs and Total Recorded Investments and Unpaid Principal Balances (Detail) (Class of Financing Receivable, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | 138 | 203 |
Recorded Investment | $19.80 | $93.10 |
Unpaid Principal Balance | 24 | 113.8 |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | 10 | 26 |
Recorded Investment | 4.6 | 31.1 |
Unpaid Principal Balance | 5.6 | 40.9 |
Commercial | Commercial and Institutional | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | 2 | 14 |
Recorded Investment | 0.7 | 3.4 |
Unpaid Principal Balance | 0.8 | 4.7 |
Commercial | Commercial Real Estate Portfolio Segment | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | 8 | 12 |
Recorded Investment | 3.9 | 27.7 |
Unpaid Principal Balance | 4.8 | 36.2 |
Personal | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | 128 | 177 |
Recorded Investment | 15.2 | 62 |
Unpaid Principal Balance | 18.4 | 72.9 |
Personal | Residential Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | 124 | 168 |
Recorded Investment | 15 | 49.1 |
Unpaid Principal Balance | 17.9 | 60 |
Personal | Private Client | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | 4 | 9 |
Recorded Investment | 0.2 | 12.9 |
Unpaid Principal Balance | $0.50 | $12.90 |
Changes_in_Allowance_for_Credi
Changes in Allowance for Credit Losses by Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Balance at Beginning of Year | $307.90 | $327.60 | $328.90 |
Charge-Offs | -36.1 | -59.3 | -63 |
Recoveries | 18.1 | 19.6 | 36.7 |
Net (Charge-Offs) Recoveries | -18 | -39.7 | -26.3 |
Provision for Credit Losses | 6 | 20 | 25 |
Balance at End of Year | 295.9 | 307.9 | 327.6 |
Loans and Leases | 267 | 278.1 | 297.9 |
Undrawn Commitments and Standby Letters of Credit | 28.9 | 29.8 | 29.7 |
Total Allowance for Credit Losses | 295.9 | 307.9 | 327.6 |
Commercial | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Balance at Beginning of Year | 168 | 194.2 | 211 |
Charge-Offs | -12.9 | -16.7 | -19.9 |
Recoveries | 11.1 | 8.6 | 20.3 |
Net (Charge-Offs) Recoveries | -1.8 | -8.1 | 0.4 |
Provision for Credit Losses | 3.5 | -18.1 | -17.2 |
Balance at End of Year | 169.7 | 168 | 194.2 |
Loans and Leases | 143.8 | 140.9 | 166.1 |
Undrawn Commitments and Standby Letters of Credit | 25.9 | 27.1 | 28.1 |
Total Allowance for Credit Losses | 169.7 | 168 | 194.2 |
Personal | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Balance at Beginning of Year | 139.9 | 133.4 | 117.9 |
Charge-Offs | -23.2 | -42.6 | -43.1 |
Recoveries | 7 | 11 | 16.4 |
Net (Charge-Offs) Recoveries | -16.2 | -31.6 | -26.7 |
Provision for Credit Losses | 2.5 | 38.1 | 42.2 |
Balance at End of Year | 126.2 | 139.9 | 133.4 |
Loans and Leases | 123.2 | 137.2 | 131.8 |
Undrawn Commitments and Standby Letters of Credit | 3 | 2.7 | 1.6 |
Total Allowance for Credit Losses | $126.20 | $139.90 | $133.40 |
Allowances_for_Credit_Losses_a
Allowances for Credit Losses and Recorded Investments in Loans and Leases by Segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Specifically Evaluated for Impairment | $242.20 | $293.40 | ||
Evaluated for Inherent Impairment | 31,398 | 29,092.10 | ||
Total Loans and Leases | 31,640.20 | 29,385.50 | ||
Specifically Evaluated for Impairment | 6.6 | 10.4 | ||
Evaluated for Inherent Impairment | 260.4 | 267.7 | ||
Allowance assigned to loans and leases | 267 | 278.1 | 297.9 | |
Allowance for Undrawn Exposures Commitments and Standby Letters of Credit | 28.9 | 29.8 | 29.7 | |
Total Allowance for Credit Losses | 295.9 | 307.9 | 327.6 | 328.9 |
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Specifically Evaluated for Impairment | 78.9 | 99.5 | ||
Evaluated for Inherent Impairment | 14,274.70 | 12,520.50 | ||
Total Loans and Leases | 14,353.60 | 12,620 | ||
Specifically Evaluated for Impairment | 5.8 | 8.1 | ||
Evaluated for Inherent Impairment | 138 | 132.8 | ||
Allowance assigned to loans and leases | 143.8 | 140.9 | 166.1 | |
Allowance for Undrawn Exposures Commitments and Standby Letters of Credit | 25.9 | 27.1 | 28.1 | |
Total Allowance for Credit Losses | 169.7 | 168 | 194.2 | 211 |
Personal | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Specifically Evaluated for Impairment | 163.3 | 193.9 | ||
Evaluated for Inherent Impairment | 17,123.30 | 16,571.60 | ||
Total Loans and Leases | 17,286.60 | 16,765.50 | ||
Specifically Evaluated for Impairment | 0.8 | 2.3 | ||
Evaluated for Inherent Impairment | 122.4 | 134.9 | ||
Allowance assigned to loans and leases | 123.2 | 137.2 | 131.8 | |
Allowance for Undrawn Exposures Commitments and Standby Letters of Credit | 3 | 2.7 | 1.6 | |
Total Allowance for Credit Losses | $126.20 | $139.90 | $133.40 | $117.90 |
Concentrations_of_Credit_Risk_1
Concentrations of Credit Risk - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Concentrations of Credit Risk [Line Items] | ||
Credit risk to banks | $16,000,000,000 | $19,900,000,000 |
Credit risk to banks - non-interest bearing balances held at banks | 1,100,000,000 | 3,000,000,000 |
Residential Real Estate | 9,800,000,000 | 10,300,000,000 |
Residential real estate loans as percentage of total U.S. loans | 32.00% | 36.00% |
Lower limit of generally required loan to collateral value for residential real estate loans | 65.00% | |
Upper limit of generally required loan to collateral value for residential real estate loans | 80.00% | |
Legally binding undrawn commitments to extend credit | 1,600,000,000 | 1,700,000,000 |
Greater Chicago Area | ||
Concentrations of Credit Risk [Line Items] | ||
Residential Real Estate | 3,000,000,000 | |
Florida | ||
Concentrations of Credit Risk [Line Items] | ||
Residential Real Estate | 2,200,000,000 | |
California | ||
Concentrations of Credit Risk [Line Items] | ||
Residential Real Estate | $1,600,000,000 |
Commercial_Real_Estate_Loan_Ty
Commercial Real Estate Loan Types (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Commercial Mortgages | ||
Apartment/ Multi-family | $728.70 | $616.20 |
Office | 735.5 | 686 |
Retail | 854.1 | 768 |
Industrial/ Warehouse | 323.7 | 318.6 |
Other | 125.7 | 110.6 |
Total Commercial Mortgages | 2,767.70 | 2,499.40 |
Construction, Acquisition and Development Loans | 256.8 | 254.2 |
Single Family Investment | 121.3 | 110 |
Other Commercial Real Estate Related | 187.5 | 92.2 |
Total Commercial Real Estate Loans | $3,333.30 | $2,955.80 |
Buildings_and_Equipment_Detail
Buildings and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Original Cost | $1,061.30 | |
Accumulated Depreciation | 617 | |
Net Book Value | 444.3 | 458.8 |
Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Original Cost | 26.5 | |
Accumulated Depreciation | 0.7 | |
Net Book Value | 25.8 | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Original Cost | 232.8 | |
Accumulated Depreciation | 117.5 | |
Net Book Value | 115.3 | |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Original Cost | 392.2 | |
Accumulated Depreciation | 234.7 | |
Net Book Value | 157.5 | |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Original Cost | 327.3 | |
Accumulated Depreciation | 212.1 | |
Net Book Value | 115.2 | |
Buildings Leased under Capital Leases | ||
Property, Plant and Equipment [Line Items] | ||
Original Cost | 82.5 | |
Accumulated Depreciation | 52 | |
Net Book Value | $30.50 |
Buildings_and_Equipment_Additi
Buildings and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation of assets | $90.60 | $92.30 | $88.30 |
Recovered_Sheet2
Future Minimum Lease payments for Non-cancelable Operating Lease (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $90.70 |
2016 | 86 |
2017 | 80.2 |
2018 | 70.5 |
2019 | 61.8 |
Later Years | 291.4 |
Total Minimum Lease Payments | 680.6 |
Less: Sublease Rentals | -24 |
Net Minimum Lease Payments | $656.60 |
Lease_Commitments_Additional_I
Lease Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Finance Lease Obligations [Line Items] | |||
Net rental expense | $73.20 | $76.20 | $77.90 |
One of the buildings and related land utilized for Chicago operations | In the event of sale or refinancing, Northern Trust would anticipate receiving full repayment of any outstanding loans plus 42% of any proceeds in excess of the original project costs. | ||
Percentage of proceeds in excess of original project costs the bank would anticipate to receive, in addition to full repayment of outstanding loan, in the event of sale or refinancing | 42.00% |
Future_Minimum_Lease_Payments_1
Future Minimum Lease Payments for Capital Lease (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Capital Leased Assets [Line Items] | |
2015 | $8.30 |
2016 | 8 |
2017 | 8.2 |
2018 | 8.4 |
2019 | 8.7 |
Later Years | -1.7 |
Total Minimum Lease Payments, net | 39.9 |
Less: Amount Representing Interest | -8.1 |
Net Present Value under Capital Lease Obligations | $31.80 |
Changes_by_Reporting_Segment_i
Changes by Reporting Segment in Carrying Amounts of Goodwill, including Effect of Foreign Exchange Rates on Non-U.S.-Dollar-Denominated Balances (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | |||
Beginning Balance | $540.70 | $537.80 | |
Foreign Exchange Rates | -7.5 | 2.9 | |
Ending Balance | 533.2 | 540.7 | |
Corporate and Institutional Services | |||
Goodwill [Line Items] | |||
Beginning Balance | 469.2 | 466.3 | |
Foreign Exchange Rates | -7.4 | 2.9 | |
Ending Balance | 461.8 | 469.2 | |
Wealth Management | |||
Goodwill [Line Items] | |||
Beginning Balance | 71.5 | 71.5 | |
Foreign Exchange Rates | -0.1 | ||
Ending Balance | $71.40 | $71.50 |
Other_Intangible_Assets_Subjec
Other Intangible Assets Subject to Amortization (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $189.50 | $198.20 |
Accumulated Amortization | 129.5 | 115.2 |
Net Book Value | $60 | $83 |
Goodwill_and_Other_Intangibles2
Goodwill and Other Intangibles - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Estimated future amortization expense for 2015 | $11.30 | ||
Estimated future amortization expense for 2016 | 8.8 | ||
Estimated future amortization expense for 2017 | 8.7 | ||
Estimated future amortization expense for 2018 | 8.1 | ||
Estimated future amortization expense for 2019 | 7.9 | ||
Other Intangible Assets | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Amortization expense related to other intangible assets | $19.50 | $21.10 | $20.30 |
Summary_of_Senior_Notes_Outsta
Summary of Senior Notes Outstanding (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Debt Outstanding [Line Items] | ||||
Senior Notes | $1,497 | [1],[2] | $1,996.60 | [1],[2] |
Fixed Rate Corporate Senior Notes 3.45 Percent Due November 2020 | ||||
Debt Outstanding [Line Items] | ||||
Interest Rate | 3.45% | [1],[2],[3] | ||
Senior Notes | 499.6 | [1],[2],[3] | 499.5 | [1],[2],[3] |
Fixed Rate Corporate Senior Notes 3.38 Percent Due August 2021 | ||||
Debt Outstanding [Line Items] | ||||
Interest Rate | 3.38% | [1],[2],[4] | ||
Senior Notes | 498.5 | [1],[2],[4] | 498.3 | [1],[2],[4] |
Fixed Rate Corporate Senior Notes 2.38 Percent Due August 2022 | ||||
Debt Outstanding [Line Items] | ||||
Interest Rate | 2.38% | [1],[2],[5] | ||
Senior Notes | 498.9 | [1],[2],[5] | 498.8 | [1],[2],[5] |
Fixed Rate Corporate Senior Notes 4.63 Percent Due May 2014 | ||||
Debt Outstanding [Line Items] | ||||
Interest Rate | 4.63% | [1],[2] | ||
Senior Notes | $500 | [1],[2] | ||
[1] | Not redeemable prior to maturity. | |||
[2] | Debt issue costs are recorded as an asset and amortized on a straight-line basis over the life of the Note. | |||
[3] | Notes issued at a discount of 0.117%. | |||
[4] | Notes issued at a discount of 0.437% | |||
[5] | Notes issued at a discount of 0.283% |
Summary_of_LongTerm_Debt_Outst
Summary of Long-Term Debt Outstanding (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Debt Disclosure [Line Items] | ||||
Federal Home Loan Bank Borrowings | $135 | |||
Capital Lease Obligations | 31.8 | [1] | 36.9 | [1] |
Total Long-Term Debt | 1,615.10 | 1,709.20 | ||
Long-Term Debt Qualifying as Risk-Based Capital | 1,009.10 | 1,158.70 | ||
Notes 6.50 Percent Bank Subordinated Debt Due August 2018 | ||||
Debt Disclosure [Line Items] | ||||
Subordinated Debt | 335 | [2],[3],[4],[5],[6] | 342.4 | [2],[3],[4],[5],[6] |
Sterling Denominated Notes 5.375 Percent Bank Subordinated Debt Due March 2015 | ||||
Debt Disclosure [Line Items] | ||||
Subordinated Debt | 233.7 | [2],[3],[7] | 248.3 | [2],[3],[7] |
Notes 5.85 Percent Bank Subordinated Debt Due November 2017 | ||||
Debt Disclosure [Line Items] | ||||
Subordinated Debt | 221.6 | [2],[3],[4],[5] | 228.9 | [2],[3],[4],[5] |
Bank-Subordinated Debt | ||||
Debt Disclosure [Line Items] | ||||
Subordinated Debt | 790.3 | [2],[3] | 819.6 | [2],[3] |
Corporation-Subordinated 3.95% Notes due Oct. 2025 | ||||
Debt Disclosure [Line Items] | ||||
Subordinated Debt | 793 | [2],[3],[4],[8] | 717.7 | [2],[3],[4],[8] |
Expiring One Year From Balance Sheet Date | ||||
Debt Disclosure [Line Items] | ||||
Federal Home Loan Bank Borrowings | $135 | |||
[1] | Refer to Note 10 - Lease Commitments. | |||
[2] | Not redeemable prior to maturity. | |||
[3] | Debt issue costs are recorded as an asset and amortized on a straight-line basis over the life of the Note. | |||
[4] | Interest rate swap contracts were entered into to modify the interest expense on these subordinated notes from fixed rates to floating rates. The swaps are recorded as fair value hedges and at December 31, 2014, increases in the carrying values of subordinated notes outstanding of $100.6 million were recorded. As of December 31, 2013, net adjustments in the carrying values of subordinated notes outstanding of $40.1 million were recorded. | |||
[5] | Under the terms of its current Offering Circular dated November 6, 2013, the Bank has the ability to offer from time to time its senior bank notes in an aggregate principal amount of up to $4.5 billion at any one time outstanding and up to an additional $1.0 billion of subordinated notes. Each senior note will mature from 30 days to fifteen years, and each subordinated note will mature from five years to fifteen years, following its date of original issuance. Each note will mature on such date as selected by the initial purchaser and agreed to by the Bank. | |||
[6] | Notes issued at a discount of 0.02% | |||
[7] | Notes issued at a discount of 0.484% | |||
[8] | Notes issued at a discount of 0.114% |
Summary_of_LongTerm_Debt_Outst1
Summary of Long-Term Debt Outstanding (Parenthetical) (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 06, 2013 | |
Debt Disclosure [Line Items] | ||||
Increases in the carrying values of notes outstanding covered by interest-rate swap contracts | $0 | ($900,000) | $400,000 | |
Notes 6.50 Percent Bank Subordinated Debt Due August 2018 | ||||
Debt Disclosure [Line Items] | ||||
Interest Rate | 6.50% | 6.50% | ||
Notes issued at a discount | 0.02% | 0.02% | ||
Sterling Denominated Notes 5.375 Percent Bank Subordinated Debt Due March 2015 | ||||
Debt Disclosure [Line Items] | ||||
Interest Rate | 5.38% | 5.38% | ||
Notes issued at a discount | 0.48% | 0.48% | ||
Notes 5.85 Percent Bank Subordinated Debt Due November 2017 | ||||
Debt Disclosure [Line Items] | ||||
Interest Rate | 5.85% | 5.85% | ||
Corporation-Subordinated 3.95% Notes due Oct. 2025 | ||||
Debt Disclosure [Line Items] | ||||
Interest Rate | 3.95% | 3.95% | ||
Notes issued at a discount | 0.11% | 0.11% | ||
Expiring One Year From Balance Sheet Date | ||||
Debt Disclosure [Line Items] | ||||
Federal Home Loan Bank Borrowings, Average Rate at Year End | 4.40% | |||
Interest Rate Swaps | Subordinated Debt | ||||
Debt Disclosure [Line Items] | ||||
Increases in the carrying values of notes outstanding covered by interest-rate swap contracts | 100,600,000 | 40,100,000 | ||
Upper Limit | Notes 6.50 Percent Bank Subordinated Debt Due August 2018 | ||||
Debt Disclosure [Line Items] | ||||
Debt maturity | 15 years | |||
Upper Limit | Notes 5.85 Percent Bank Subordinated Debt Due November 2017 | ||||
Debt Disclosure [Line Items] | ||||
Debt maturity | 15 years | |||
Upper Limit | Senior Notes | ||||
Debt Disclosure [Line Items] | ||||
Offering Circular, ability to offer notes in aggregate principal amount | 4,500,000,000 | |||
Debt maturity | 15 years | |||
Upper Limit | Subordinated Debt | ||||
Debt Disclosure [Line Items] | ||||
Offering Circular, ability to offer notes in aggregate principal amount | 1,000,000,000 | |||
Lower Limit | Notes 6.50 Percent Bank Subordinated Debt Due August 2018 | ||||
Debt Disclosure [Line Items] | ||||
Debt maturity | 5 years | |||
Lower Limit | Notes 5.85 Percent Bank Subordinated Debt Due November 2017 | ||||
Debt Disclosure [Line Items] | ||||
Debt maturity | 5 years | |||
Lower Limit | Senior Notes | ||||
Debt Disclosure [Line Items] | ||||
Debt maturity | 30 days |
Summary_of_Senior_Notes_Outsta1
Summary of Senior Notes Outstanding (Parenthetical) (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Fixed Rate Corporate Senior Notes 3.45 Percent Due November 2020 | ||
Debt Outstanding [Line Items] | ||
Notes issued at a discount | 0.12% | 0.12% |
Fixed Rate Corporate Senior Notes 3.38 Percent Due August 2021 | ||
Debt Outstanding [Line Items] | ||
Notes issued at a discount | 0.44% | 0.44% |
Fixed Rate Corporate Senior Notes 2.38 Percent Due August 2022 | ||
Debt Outstanding [Line Items] | ||
Notes issued at a discount | 0.28% | 0.28% |
Floating_Rate_Capital_Debt_Add
Floating Rate Capital Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 31, 1997 | Apr. 30, 1997 |
Tier I | 2014 | |||
Debt Instrument [Line Items] | |||
Phase out of tier capital treatment percentage | 50.00% | ||
Tier I | 2015 | |||
Debt Instrument [Line Items] | |||
Phase out of tier capital treatment percentage | 25.00% | ||
Tier II | 2014 | |||
Debt Instrument [Line Items] | |||
Phase out of tier capital treatment percentage | 50.00% | ||
Tier II | 2015 | |||
Debt Instrument [Line Items] | |||
Phase out of tier capital treatment percentage | 75.00% | ||
Tier II | 2016 | |||
Debt Instrument [Line Items] | |||
Phase out of tier capital treatment percentage | 60.00% | ||
Tier II | Thereafter | |||
Debt Instrument [Line Items] | |||
Phase out of tier capital treatment annual incremental percentage | 10.00% | ||
NTC Capital I Subordinated Debentures Due January 15th 2027 | |||
Debt Instrument [Line Items] | |||
Floating Rate Capital Securities, issued | $150 | ||
Floating Rate Capital Securities, terms of issue | The Series A Securities were issued at a discount to yield 60.5 basis points above the three-month London Interbank Offered Rate (LIBOR) and are due January 15, 2027. The Series B Securities were issued at a discount to yield 67.9 basis points above the three-month LIBOR and are due April 15, 2027. | ||
Floating Rate Capital Securities, due date | 15-Jan-27 | ||
Phased out period for tier 1 regulatory capital treatment of securities | 3 years | ||
Start date of phased out period for tier 1 regulatory capital treatment of securities | 1-Jan-13 | ||
Liquidation amount per Security | $1,000 | ||
Interest rate on the securities | Three-month LIBOR plus 0.52% | ||
Maximum consecutive periods on the deferred payment of interest | 20 Quarterly periods | ||
NTC Capital I Subordinated Debentures Due January 15th 2027 | Group One | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.61% | ||
NTC Capital I Subordinated Debentures Due January 15th 2027 | Group Two | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.52% | ||
NTC Capital II Subordinated Debentures Due April 15th 2027 | |||
Debt Instrument [Line Items] | |||
Floating Rate Capital Securities, issued | $120 | ||
Floating Rate Capital Securities, terms of issue | The Series B Securities were issued at a discount to yield 67.9 basis points above the three-month LIBOR and are due April 15, 2027. | ||
Floating Rate Capital Securities, due date | 15-Apr-27 | ||
Phased out period for tier 1 regulatory capital treatment of securities | 3 years | ||
Start date of phased out period for tier 1 regulatory capital treatment of securities | 1-Jan-13 | ||
Liquidation amount per Security | $1,000 | ||
Interest rate on the securities | Three-month LIBOR plus 0.59% | ||
Maximum consecutive periods on the deferred payment of interest | 20 Quarterly periods | ||
NTC Capital II Subordinated Debentures Due April 15th 2027 | Group One | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.68% | ||
NTC Capital II Subordinated Debentures Due April 15th 2027 | Group Two | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.59% |
Summary_of_Book_Values_of_Outs
Summary of Book Values of Outstanding Subordinated Debentures (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Outstanding [Line Items] | ||
Floating Rate Capital Debt | $277.20 | $277.10 |
NTC Capital I Subordinated Debentures Due January 15th 2027 | ||
Debt Outstanding [Line Items] | ||
Floating Rate Capital Debt | 154 | 154 |
NTC Capital II Subordinated Debentures Due April 15th 2027 | ||
Debt Outstanding [Line Items] | ||
Floating Rate Capital Debt | $123.20 | $123.10 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 21, 2014 | Aug. 05, 2014 | Mar. 31, 2015 | |
Stockholders Equity Note [Line Items] | ||||||
Preferred stock, shares authorized | 10,000,000 | |||||
Preferred stock, without par value | ||||||
Proceeds from preferred stock issued during period | $388,500,000 | |||||
Shares authorized for repurchase | 7,100,000 | |||||
Average price paid per share for common stock repurchased | $64.20 | $55.90 | $46.32 | |||
Through March 2015 | Upper Limit | ||||||
Stockholders Equity Note [Line Items] | ||||||
Stock Repurchase Authorized Amount | 107,300,000 | |||||
Series C Preferred Stock | ||||||
Stockholders Equity Note [Line Items] | ||||||
Stock issued during period | 16,000,000 | |||||
Per share ownership interest, percentage | 0.10% | |||||
Preferred stock, without par value | ||||||
Preferred stock, liquidation preference | 25,000 | |||||
Depository shares, liquidation preference per share | $25 | |||||
Proceeds from preferred stock issued during period | $388,500,000 | |||||
Preferred stock, annual dividend rate | 5.85% | |||||
Preferred Stock, Dividends Per Share, Declared | $593.13 | |||||
Dividends Payable, Date to be Paid | 1-Jan-15 | |||||
Dividends Payable, Date of Record | 15-Dec-14 | |||||
Preferred Stock, redemption start date | 1-Oct-19 | |||||
Preferred Stock, redemption terms | The Series C Preferred Stock is redeemable at Northern Trust's option, in whole or in part, on any dividend payment date on or after October 1, 2019. The Series C Preferred stock is redeemable at the Company's option, in whole, but not in part, prior to October 1, 2019 within 90 days of a regulatory capital treatment event. | |||||
Preferred stock redemption period following regulatory capital treatment event | 90 days |
Changes_in_Number_of_Shares_of
Changes in Number of Shares of Common Stock Outstanding (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of Common Stock Outstanding [Line Items] | |||
Beginning balance | 237,322,035 | 238,914,988 | 241,008,509 |
Incentive Plan and Awards | 1,040,015 | 863,958 | 449,463 |
Stock Options Exercised | 2,515,769 | 3,088,490 | 973,270 |
Treasury Stock Purchased | -7,487,114 | -5,545,401 | -3,516,254 |
Ending balance | 233,390,705 | 237,322,035 | 238,914,988 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Ending Balance | ($319.70) | ($244.30) | ($283) |
Net Change | -75.4 | 38.7 | 62.6 |
Beginning Balance | -244.3 | -283 | -345.6 |
Net Unrealized Gains (Losses) on Securities Available for Sale | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Ending Balance | 27.6 | 6 | 101 |
Net Change | 21.6 | -95 | 61.2 |
Beginning Balance | 6 | 101 | 39.8 |
Net Unrealized (Losses) Gains on Cash Flow Hedges Designations | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Ending Balance | -4.7 | 2.9 | -1.4 |
Net Change | -7.6 | 4.3 | 5.6 |
Beginning Balance | 2.9 | -1.4 | -7 |
Net Foreign Currency Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Ending Balance | -1.7 | 7.1 | 10.5 |
Net Change | -8.8 | -3.4 | 20 |
Beginning Balance | 7.1 | 10.5 | -9.5 |
Net Pension and Other Postretirement Benefit Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Ending Balance | -340.9 | -260.3 | -393.1 |
Net Change | -80.6 | 132.8 | -24.2 |
Beginning Balance | ($260.30) | ($393.10) | ($368.90) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) Changes During Period (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax Effect | ($18.60) | ($4.30) | ($18.70) |
Other Comprehensive (Loss) Income | -75.4 | 38.7 | 62.6 |
Net Unrealized Gains (Losses) on Securities Available for Sale | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | 34.7 | -152.2 | 98 |
Tax Effect | -13.1 | 57.2 | -36.8 |
Other Comprehensive (Loss) Income | 21.6 | -95 | 61.2 |
Net Unrealized Gains (Losses) on Securities Available for Sale | Noncredit-Related Unrealized Losses on Securities OTTI | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | 4.5 | 3 | 15.7 |
Tax Effect | -1.7 | -1.1 | -5.9 |
Other Comprehensive (Loss) Income | 2.8 | 1.9 | 9.8 |
Net Unrealized Gains (Losses) on Securities Available for Sale | Other Unrealized Gains (Losses) on Securities Available-for-Sale | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | 30.1 | -156.8 | 96.2 |
Tax Effect | -11.4 | 59 | -36.1 |
Other Comprehensive (Loss) Income | 18.7 | -97.8 | 60.1 |
Net Unrealized Gains (Losses) on Securities Available for Sale | Reclassification Adjustment for (Gains) Losses Included in Net Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | 0.1 | 1.6 | -13.9 |
Tax Effect | -0.7 | 5.2 | |
Other Comprehensive (Loss) Income | 0.1 | 0.9 | -8.7 |
Net Unrealized (Losses) Gains on Cash Flow Hedges Designations | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | -12.7 | 6.8 | 8 |
Tax Effect | 5.1 | -2.5 | -2.4 |
Other Comprehensive (Loss) Income | -7.6 | 4.3 | 5.6 |
Net Unrealized (Losses) Gains on Cash Flow Hedges Designations | Reclassification Adjustment for (Gains) Losses Included in Net Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | -4 | 4.7 | 4.8 |
Tax Effect | 1.5 | -1.8 | -1.8 |
Other Comprehensive (Loss) Income | -2.5 | 2.9 | 3 |
Net Unrealized (Losses) Gains on Cash Flow Hedges Designations | Unrealized Gains (Losses) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | -8.7 | 2.1 | 3.2 |
Tax Effect | 3.6 | -0.7 | -0.6 |
Other Comprehensive (Loss) Income | -5.1 | 1.4 | 2.6 |
Net Foreign Currency Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | 33.8 | -15.4 | 4.2 |
Tax Effect | -42.6 | 12 | 15.8 |
Other Comprehensive (Loss) Income | -8.8 | -3.4 | 20 |
Net Foreign Currency Adjustments | Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | -107.8 | 91.9 | 37.9 |
Tax Effect | 10.8 | -29.7 | 3.1 |
Other Comprehensive (Loss) Income | -97 | 62.2 | 41 |
Net Foreign Currency Adjustments | Long-Term Intra-Entity Foreign Currency Transaction Losses | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | -1 | ||
Tax Effect | 0.4 | ||
Other Comprehensive (Loss) Income | -0.6 | ||
Net Foreign Currency Adjustments | Net Investment Hedge Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | 142.6 | -107.3 | -33.7 |
Tax Effect | -53.8 | 41.7 | 12.7 |
Other Comprehensive (Loss) Income | 88.8 | -65.6 | -21 |
Net Pension and Other Postretirement Benefit Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | -112.6 | 203.8 | -28.9 |
Tax Effect | 32 | -71 | 4.7 |
Other Comprehensive (Loss) Income | -80.6 | 132.8 | -24.2 |
Net Pension and Other Postretirement Benefit Adjustments | Reclassification Adjustment for (Gains) Losses Included in Net Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | 25.2 | 46.1 | 33.9 |
Tax Effect | -9.5 | -16.1 | -11.1 |
Other Comprehensive (Loss) Income | 15.7 | 30 | 22.8 |
Net Pension and Other Postretirement Benefit Adjustments | Net Actuarial Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before Tax | -137.8 | 157.7 | -62.8 |
Tax Effect | 41.5 | -54.9 | 15.8 |
Other Comprehensive (Loss) Income | ($96.30) | $102.80 | ($47) |
Reclassification_Adjustments_o
Reclassification Adjustments out of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Available for Sale Investment Securities | Realized (Gains) Losses on Securities Available for Sale | Investment Security Gains (Losses), net | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gross Reclassification Adjustment | $0.10 | $1.60 | ($13.90) |
CASH FLOW HEDGES | Foreign Exchange Contracts | Other Operating Income/Expense | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gross Reclassification Adjustment | -4 | 4.7 | 4.8 |
Pension and Other Postretirement Benefit Adjustments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gross Reclassification Adjustment | 25.2 | 46.1 | 33.9 |
Pension and Other Postretirement Benefit Adjustments | Employee Benefits | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of Net Actuarial (Gains) Losses | 25.1 | 49 | 38.8 |
Amortization of Prior Service Cost | $0.10 | ($2.90) | ($4.90) |
Computations_of_Net_Income_Per
Computations of Net Income Per Common Share (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
BASIC NET INCOME PER COMMON SHARE | |||
Average Number of Common Shares Outstanding | 235,829,790 | 239,265,313 | 240,417,805 |
Net Income | $811.80 | $731.30 | $687.30 |
Less: Dividends on Preferred Stock | 9.5 | ||
Net Income Applicable to Common Stock | 802.3 | 731.3 | 687.3 |
Less: Earnings Allocated to Participating Securities | 13.3 | 11.9 | 10 |
Earnings Allocated to Common Shares Outstanding | 789 | 719.4 | 677.3 |
Basic Net Income Per Common Share | $3.34 | $3.01 | $2.82 |
DILUTED NET INCOME PER COMMON SHARE | |||
Average Number of Common Shares Outstanding | 235,829,790 | 239,265,313 | 240,417,805 |
Plus Dilutive Effect of Share-based Compensation | 1,890,465 | 1,289,527 | 463,439 |
Average Common and Potential Common Shares | 237,720,255 | 240,554,840 | 240,881,244 |
Earnings Allocated to Common and Potential Common Shares | $789 | $719.50 | $677.30 |
Diluted Net Income Per Common Share | $3.32 | $2.99 | $2.81 |
Net_Income_Per_Common_Share_Ad
Net Income Per Common Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock equivalents not included in the computation of diluted earnings per share because their inclusion would have been antidilutive | 1,517,588 | 3,498,894 | 12,158,601 |
Components_of_Net_Interest_Inc
Components of Net Interest Income (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Interest Income | ||||||
Loans and Leases | $735.90 | $743.10 | $828.60 | |||
Securities - Taxable | 274.9 | 237.2 | 250.6 | |||
- Non-Taxable | 7.2 | 11.6 | 17.7 | |||
Interest-Bearing Due from and Deposits with Banks | 127.6 | [1] | 142.1 | [1] | 176.4 | [1] |
Federal Reserve Deposits and Other | 41.3 | 21.5 | 14.4 | |||
Total Interest Income | 1,186.90 | 1,155.50 | 1,287.70 | |||
Interest Expense | ||||||
Deposits | 81.7 | 103.3 | 156.7 | |||
Federal Funds Purchased | 1.3 | 1.5 | 1.2 | |||
Securities Sold under Agreements to Repurchase | 0.4 | 0.4 | 0.4 | |||
Other Borrowings | 3.4 | 3.3 | 4 | |||
Senior Notes | 54.7 | 74.4 | 72 | |||
Long-Term Debt | 37.7 | 37.1 | 60.3 | |||
Floating Rate Capital Debt | 2.2 | 2.4 | 2.8 | |||
Total Interest Expense | 181.4 | 222.4 | 297.4 | |||
Net Interest Income | $1,005.50 | $933.10 | $990.30 | |||
[1] | 2014 interest income was earned on cash and due from banks of $1.7 billion and interest-bearing deposits with banks of $14.9 billion as of December 31, 2014. |
Components_of_Net_Interest_Inc1
Components of Net Interest Income (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Net Interest Income [Line Items] | ||||
Cash and Due from Banks | $3,050.60 | $3,162.40 | $3,752.70 | $4,315.30 |
Interest-Bearing Deposits with Banks | 14,928.30 | 19,397.40 | ||
Bank Time Deposits | ||||
Net Interest Income [Line Items] | ||||
Cash and Due from Banks | $1,700 |
Components_of_Other_Operating_
Components of Other Operating Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Other Operating Income [Line Items] | |||
Loan Service Fees | $62.70 | $61.90 | $64.50 |
Banking Service Fees | 49.6 | 50.9 | 55 |
Other Income | 41.2 | 53.7 | 35.4 |
Total Other Operating Income | $153.50 | $166.50 | $154.90 |
Components_of_Other_Operating_1
Components of Other Operating Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Component of Operating Other Cost and Expense [Line Items] | |||
Business Promotion | $88 | $91.60 | $87.80 |
FDIC Insurance Premiums | 22 | 23.5 | 25.4 |
Staff Related | 39.1 | 39.1 | 41.9 |
Legal Settlement Charge | 19.2 | ||
Other Expenses | 103.5 | 119.7 | 107.5 |
Total Other Operating Expense | 272.1 | 314.2 | 282.9 |
Other Intangible Assets | |||
Component of Operating Other Cost and Expense [Line Items] | |||
Other Intangibles Amortization | $19.50 | $21.10 | $20.30 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||
Statutory federal tax rate | 35.00% | ||
Unrecognized tax benefit | $11,900,000 | $15,600,000 | $19,400,000 |
Increase in net income from recognition of unrecognized tax benefits | 8,800,000 | 12,600,000 | |
Net (decreases) increases in unrecognized tax benefits | -3,700,000 | -3,800,000 | |
Interest and penalties, net of tax, included in the provision (benefit) for income taxes | 200,000 | -1,700,000 | |
Liability for the potential payment of interest and penalties | 10,200,000 | 11,000,000 | |
Earnings of certain non-U.S. subsidiaries indefinitely reinvested | 177,400,000 | 141,000,000 | 137,400,000 |
Approximated cumulative amount of undistributed pre-tax earnings in subsidiaries | 1,100,000,000 | ||
Additional deferred tax liability if Northern Trust had not elected to indefinitely reinvest foreign earnings | 255,000,000 | ||
Net operating loss carryforwards | 3,900,000 | ||
Valuation allowance related to net operating loss carryforwards | 3,900,000 | 3,900,000 | 3,900,000 |
Valuation Reserve | 3,900,000 | 3,900,000 | 3,900,000 |
Remaining Deferred Tax Assets | |||
Income Taxes [Line Items] | |||
Valuation Reserve | 0 | 0 | 0 |
Leveraged Lease Obligations | Income Tax Expense Benefit | |||
Income Taxes [Line Items] | |||
Application of new tax estimates | ($12,400,000) |
Reconciliation_of_Total_Provis
Reconciliation of Total Provision for Income Taxes with Amount Computed at Statutory Federal Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Statutory Federal Tax Rate [Line Items] | |||
Tax at Statutory Rate | $416.60 | $376.40 | $347.30 |
Tax Exempt Income | -4.9 | -6.2 | -8 |
Leveraged Lease Adjustments | -3.4 | -2.3 | -12 |
Foreign Tax Rate Differential | -44.1 | -27.6 | -27.1 |
State Taxes, net | 29.6 | 26.3 | 20.4 |
Other | -15.4 | -22.4 | -15.6 |
Provision for Income Taxes | $378.40 | $344.20 | $305 |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefit (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Contingency [Line Items] | ||
Beginning Balance | $15.60 | $19.40 |
Additions for Tax Positions Taken in Prior Years | 3 | 2.4 |
Reductions for Tax Positions Taken in Prior Years | -5.5 | -4.4 |
Reductions Resulting from Expiration of Statutes | -1.2 | -1.8 |
Ending Balance | $11.90 | $15.60 |
Components_of_Consolidated_Pro
Components of Consolidated Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Tax Provision: | |||
Federal | $291.50 | $185.60 | $140.50 |
State | 47.2 | 24.6 | 21.4 |
Non-U.S. | 76.1 | 67.4 | 63.4 |
Total | 414.8 | 277.6 | 225.3 |
Deferred Tax Provision: | |||
Federal | -31.1 | 53.9 | 66 |
State | -1.6 | 14.1 | 10.6 |
Non-U.S. | -3.7 | -1.4 | 3.1 |
Total | -36.4 | 66.6 | 79.7 |
Provision for Income Taxes | $378.40 | $344.20 | $305 |
Tax_Charges_Benefits_Recorded_
Tax Charges (Benefits) Recorded Directly to Stockholders' Equity (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Current Tax Benefit for Employee Stock Options and Other Stock-Based Plans | $8.80 | $3 | $2.30 |
Tax Effect of Other Comprehensive Income | $18.60 | $4.30 | $18.70 |
Deferred_Tax_Liabilities_and_A
Deferred Tax Liabilities and Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Deferred Tax Liabilities: | |||
Lease Financing | $388.60 | $392 | $409.10 |
Software Development | 316.1 | 299 | 277.8 |
Accumulated Depreciation | 24.1 | 22 | 19.7 |
Compensation and Benefits | 63.5 | 112.2 | 29.7 |
State Taxes, net | 62.3 | 63.3 | 54.7 |
Other Liabilities | 157.5 | 104 | 170.9 |
Gross Deferred Tax Liabilities | 1,012.10 | 992.5 | 961.9 |
Deferred Tax Assets: | |||
Allowance for Credit Losses | 103.5 | 107.8 | 114.7 |
Other Assets | 126.7 | 85 | 118.4 |
Gross Deferred Tax Assets | 230.2 | 192.8 | 233.1 |
Valuation Reserve | -3.9 | -3.9 | -3.9 |
Deferred Tax Assets, net of Valuation Reserve | 226.3 | 188.9 | 229.2 |
Net Deferred Tax Liabilities | $785.80 | $803.60 | $732.70 |
Employee_Benefits_Additional_I
Employee Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Age | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated contribution defined contribution plans | $46.80 | $43 | $41 | |
Rabbi Trust | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | 93.2 | 85.1 | ||
Contributions made to the pension plan | 13.9 | 16.4 | ||
U.S. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | 1,440.80 | 1,342.10 | 1,277.70 | |
Prior service costs, amortization period (years) | 11 years | |||
Benefit Obligation increase as a result of adopting the RP-2014 mortality table with improvement scale MP-2014 | 25.7 | |||
Expected long-term rate of return on plan assets | 7.25% | |||
Weighted average discount rate used in determining the accumulated postretirement benefit obligation | 4.25% | 5.00% | ||
U.S. Plan | Alternative Investment | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 20.00% | |||
U.S. Plan | Qualified Defined Benefit Pension Plans | Lower Limit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to plan assets | 0 | |||
U.S. Plan | Qualified Defined Benefit Pension Plans | Upper Limit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to plan assets | 150 | |||
U.S. Plan | U.S. | Preferred and Common Stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | 116 | |||
Target allocation of plan assets | 20.00% | |||
U.S. Plan | Non U.S. | Preferred and Common Stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | 56.8 | |||
Target allocation of plan assets | 15.00% | |||
U.S. Plan | U.S. Government Sponsored Agency | Fixed Income Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 45.00% | |||
U.S. Plan | Private Equity Funds | Alternative Investment | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 5.00% | |||
U.S. Plan | Private Equity Funds | Upper Limit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Equity target allocation of plan assets | 20.00% | |||
U.S. Plan | Hedge Funds | Alternative Investment | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 5.00% | |||
U.S. Plan | Real Estate | Alternative Investment | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 5.00% | |||
U.S. Plan | Global Listed Infrastructure | Alternative Investment | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 5.00% | |||
U.S. Plan | Derivative Financial Instruments, Assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | 0 | 0 | ||
Supplemental Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Prior service costs, amortization period (years) | 9 years | |||
Benefit Obligation increase as a result of adopting the RP-2014 mortality table with improvement scale MP-2014 | 0.7 | |||
Weighted average discount rate used in determining the accumulated postretirement benefit obligation | 4.25% | 5.00% | ||
Defined Benefit Postretirement Health Coverage | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Services attained by employees for eligibility, years | 15 years | |||
Services attained by employees for eligibility, retiring age | 55 | |||
Employee Group Waiver Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employee Group Waiver Plan (EGWP), effective date | Jan-12 | |||
Reduction in postretirement health care plan liability | 26.7 | |||
Increase in net actuarial gain | 3.3 | |||
Other Postretirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit Obligation increase as a result of adopting the RP-2014 mortality table with improvement scale MP-2014 | 2.2 | |||
Weighted average discount rate used in determining the accumulated postretirement benefit obligation | 4.25% | 5.00% | ||
Ultimate health care rate | 5.00% | |||
Other Postretirement Plan | Pre-Age 65 Medical and Drug Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current health care cost trend rate | 8.00% | |||
Year in which ultimate trend rate will be reached | 2022 | |||
Other Postretirement Plan | Post-Age 65 Medical and Drug Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current health care cost trend rate | 7.50% | |||
Year in which ultimate trend rate will be reached | 2022 | |||
Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization from AOCI of the net actuarial gain (loss) | 38.6 | |||
Amortization from AOCI of the prior service benefit | ($0.20) |
Plan_Status_of_US_Plan_NonUS_P
Plan Status of U.S. Plan, Non-U.S. Plan, and supplemental Plan (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation | $974.80 | $827.90 | |
Projected Benefit Obligation | 1,091.50 | 919.7 | 1,030.40 |
Plan Assets at Fair Value | 1,440.80 | 1,342.10 | 1,277.70 |
Funded Status at end of year | 349.3 | 422.4 | |
Weighted-Average Assumptions: | |||
Discount Rates | 4.25% | 5.00% | |
Rate of Increase in Compensation Level | 4.25% | 4.25% | |
Expected Long-Term Rate of Return on Assets | 7.25% | 7.75% | |
Non U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation | 184.6 | 164.7 | |
Projected Benefit Obligation | 184.6 | 164.7 | 158.1 |
Plan Assets at Fair Value | 157.6 | 148.5 | 133.9 |
Funded Status at end of year | -27 | -16.2 | |
Weighted-Average Assumptions: | |||
Discount Rates | 3.20% | 4.31% | |
Expected Long-Term Rate of Return on Assets | 4.00% | 4.84% | |
Supplemental Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation | 109.2 | 89.8 | |
Projected Benefit Obligation | 123 | 101.5 | 106.4 |
Funded Status at end of year | ($123) | ($101.50) | |
Weighted-Average Assumptions: | |||
Discount Rates | 4.25% | 5.00% | |
Rate of Increase in Compensation Level | 4.25% | 4.25% |
Amounts_Included_in_Accumulate
Amounts Included in Accumulated Other Comprehensive Income (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
U.S. Plan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net Actuarial Loss | $382.90 | $310.70 |
Prior Service Cost | -3.1 | -3.5 |
Gross Amount in Accumulated Other Comprehensive Income | 379.8 | 307.2 |
Income Tax Effect | 143.3 | 119.5 |
Net Amount in Accumulated Other Comprehensive Income | 236.5 | 187.7 |
Non U.S. Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net Actuarial Loss | 60.5 | 40.9 |
Gross Amount in Accumulated Other Comprehensive Income | 60.5 | 40.9 |
Income Tax Effect | 6.3 | 4.8 |
Net Amount in Accumulated Other Comprehensive Income | 54.2 | 36.1 |
Supplemental Plan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net Actuarial Loss | 81.5 | 64.2 |
Prior Service Cost | 1.1 | 1.6 |
Gross Amount in Accumulated Other Comprehensive Income | 82.6 | 65.8 |
Income Tax Effect | 30.9 | 25.6 |
Net Amount in Accumulated Other Comprehensive Income | $51.70 | $40.20 |
Components_of_Companys_Net_Per
Components of Company's Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Plan | |||
Defined Benefit plan Net periodic benefit cost | |||
Service Cost | $32.70 | $30.30 | $35.30 |
Interest Cost | 44.4 | 42.1 | 41.4 |
Expected Return on Plan Assets | -97.7 | -93.3 | -87 |
Amortization: | |||
Net Loss (Gain) | 21.5 | 42.5 | 34.3 |
Prior Service Cost | 0.4 | -0.4 | -0.4 |
Net Periodic Pension Expense (Benefit) | 0.5 | 21.2 | 23.6 |
Weighted-Average Assumptions: | |||
Discount Rates | 5.00% | 4.25% | 4.75% |
Rate of Increase in Compensation Level | 4.25% | 4.02% | 4.02% |
Expected Long-Term Rate of Return on Assets | 7.75% | 7.75% | 8.00% |
Non U.S. Plans | |||
Defined Benefit plan Net periodic benefit cost | |||
Interest Cost | 6.9 | 6.6 | 6.2 |
Expected Return on Plan Assets | -7 | -6.2 | -6.8 |
Amortization: | |||
Net Loss (Gain) | -1.6 | 1 | 0.7 |
Net Periodic Pension Expense (Benefit) | -1.7 | 1.4 | 0.1 |
Weighted-Average Assumptions: | |||
Discount Rates | 4.31% | 4.42% | 5.02% |
Expected Long-Term Rate of Return on Assets | 4.84% | 4.76% | 5.28% |
Supplemental Plan | |||
Defined Benefit plan Net periodic benefit cost | |||
Service Cost | 3.1 | 1.6 | 3 |
Interest Cost | 4.8 | 4.4 | 4.5 |
Amortization: | |||
Net Loss (Gain) | 5.8 | 6.7 | 6.1 |
Prior Service Cost | 0.5 | 0.5 | 0.6 |
Net Periodic Pension Expense (Benefit) | $14.20 | $13.20 | $14.20 |
Weighted-Average Assumptions: | |||
Discount Rates | 5.00% | 4.25% | 4.75% |
Rate of Increase in Compensation Level | 4.25% | 4.02% | 4.02% |
Change_in_Projected_Benefit_Ob
Change in Projected Benefit Obligation (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Plan | |||
Schedule of Defined Benefit Plan Change in Benefit Obligation [Line Items] | |||
Beginning Balance | $919.70 | $1,030.40 | |
Service Cost | 32.7 | 30.3 | 35.3 |
Interest Cost | 44.4 | 42.1 | 41.4 |
Actuarial (Gain) Loss | 153.1 | -125.4 | |
Benefits Paid | -58.4 | -57.7 | |
Ending Balance | 1,091.50 | 919.7 | 1,030.40 |
Non U.S. Plans | |||
Schedule of Defined Benefit Plan Change in Benefit Obligation [Line Items] | |||
Beginning Balance | 164.7 | 158.1 | |
Interest Cost | 6.9 | 6.6 | 6.2 |
Actuarial (Gain) Loss | 33.2 | 0.4 | |
Benefits Paid | -6.6 | -5 | |
Foreign Exchange Rate Changes | -13.6 | 4.6 | |
Ending Balance | 184.6 | 164.7 | 158.1 |
Supplemental Plan | |||
Schedule of Defined Benefit Plan Change in Benefit Obligation [Line Items] | |||
Beginning Balance | 101.5 | 106.4 | |
Service Cost | 3.1 | 1.6 | 3 |
Interest Cost | 4.8 | 4.4 | 4.5 |
Actuarial (Gain) Loss | 23.1 | -0.5 | |
Benefits Paid | -9.5 | -10.4 | |
Ending Balance | $123 | $101.50 | $106.40 |
Estimated_Future_Benefit_Payme
Estimated Future Benefit Payments (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
U.S. Plan | |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
2015 | $69.40 |
2016 | 68.4 |
2017 | 70.2 |
2018 | 70.7 |
2019 | 71.2 |
2020-2024 | 345.2 |
Non U.S. Plans | |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
2015 | 2.5 |
2016 | 3.1 |
2017 | 2.6 |
2018 | 3 |
2019 | 3.3 |
2020-2024 | 22.4 |
Supplemental Plan | |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
2015 | 9.5 |
2016 | 10.6 |
2017 | 12.7 |
2018 | 12.4 |
2019 | 12.3 |
2020-2024 | $60.20 |
Change_In_Plan_Assets_Detail
Change In Plan Assets (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
U.S. Plan | ||
Schedule of Defined Benefit Plan Change in Plan Assets [Line Items] | ||
Fair Value at beginning of year | $1,342.10 | $1,277.70 |
Actual Return on Assets | 157.1 | 122.1 |
Benefits Paid | -58.4 | -57.7 |
Fair Value at end of year | 1,440.80 | 1,342.10 |
Non U.S. Plans | ||
Schedule of Defined Benefit Plan Change in Plan Assets [Line Items] | ||
Fair Value at beginning of year | 148.5 | 133.9 |
Actual Return on Assets | 22.2 | 11.5 |
Employer Contributions | 4.8 | 4.3 |
Benefits Paid | -6.6 | -5 |
Foreign Exchange Rate Changes | -11.3 | 3.8 |
Fair Value at end of year | $157.60 | $148.50 |
Fair_Value_of_Pension_Plan_Ass
Fair Value of Pension Plan Assets (Detail) (U.S. Plan, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | $1,440.80 | $1,342.10 | $1,277.70 |
COMMON STOCK | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 14.8 | ||
Preferred and Common Stock | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 116 | ||
Preferred and Common Stock | Non U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 56.8 | ||
Fixed Income | U.S. Government Sponsored Agency | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 159.5 | 131.7 | |
Other Investment | Mutual Funds | Global Large Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 69.6 | ||
Other Investment | Mutual Funds | Foreign Large Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 66.6 | ||
Other Investment | Mutual Funds | Domestic Large Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 69.4 | ||
Other Investment | Collective Trust Fund | Foreign Large Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 105.4 | 74.3 | |
Other Investment | Collective Trust Fund | Foreign Small Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 37.2 | 31.6 | |
Other Investment | Collective Trust Fund | Domestic Large Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 196.7 | 101 | |
Other Investment | Collective Trust Fund | Domestic Small Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 26.5 | 26.3 | |
Other Investment | Collective Trust Fund | Domestic Mid Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 14.4 | 19.1 | |
Other Investment | Collective Trust Fund | Domestic Small Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 21.2 | 14.3 | |
Other Investment | Collective Trust Fund | Domestic Mid Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 15.2 | 38 | |
Other Investment | Collective Trust Fund | Short-Term Investment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 3.4 | 6.6 | |
Other Investment | Collective Trust Fund | Global Real Estate Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 73.8 | 65.4 | |
Other Investment | Collective Trust Fund | Domestic Long-Term Bond | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 508 | 333.7 | |
Other Investment | Collective Trust Fund | Emerging Market Large Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 68.2 | 40.9 | |
Other Investment | Commodity Linked Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 39.7 | ||
Other Investment | Ishares Index Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 2.4 | ||
Other Investment | Private Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 49 | 47.7 | |
Other Investment | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 68.6 | 55.1 | |
Cash and Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 9.3 | 5.5 | |
Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 93.7 | 352.5 | |
Fair Value, Inputs, Level 1 | COMMON STOCK | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 14.8 | ||
Fair Value, Inputs, Level 1 | Preferred and Common Stock | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 116 | ||
Fair Value, Inputs, Level 1 | Preferred and Common Stock | Non U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 52.9 | ||
Fair Value, Inputs, Level 1 | Other Investment | Mutual Funds | Global Large Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 69.6 | ||
Fair Value, Inputs, Level 1 | Other Investment | Mutual Funds | Foreign Large Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 66.6 | ||
Fair Value, Inputs, Level 1 | Other Investment | Mutual Funds | Domestic Large Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 69.4 | ||
Fair Value, Inputs, Level 1 | Other Investment | Commodity Linked Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 39.7 | ||
Fair Value, Inputs, Level 1 | Other Investment | Ishares Index Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 2.4 | ||
Fair Value, Inputs, Level 1 | Cash and Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 9.3 | 5.5 | |
Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 1,229.50 | 886.8 | |
Fair Value, Inputs, Level 2 | Preferred and Common Stock | Non U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 3.9 | ||
Fair Value, Inputs, Level 2 | Fixed Income | U.S. Government Sponsored Agency | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 159.5 | 131.7 | |
Fair Value, Inputs, Level 2 | Other Investment | Collective Trust Fund | Foreign Large Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 105.4 | 74.3 | |
Fair Value, Inputs, Level 2 | Other Investment | Collective Trust Fund | Foreign Small Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 37.2 | 31.6 | |
Fair Value, Inputs, Level 2 | Other Investment | Collective Trust Fund | Domestic Large Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 196.7 | 101 | |
Fair Value, Inputs, Level 2 | Other Investment | Collective Trust Fund | Domestic Small Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 26.5 | 26.3 | |
Fair Value, Inputs, Level 2 | Other Investment | Collective Trust Fund | Domestic Mid Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 14.4 | 19.1 | |
Fair Value, Inputs, Level 2 | Other Investment | Collective Trust Fund | Domestic Small Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 21.2 | 14.3 | |
Fair Value, Inputs, Level 2 | Other Investment | Collective Trust Fund | Domestic Mid Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 15.2 | 38 | |
Fair Value, Inputs, Level 2 | Other Investment | Collective Trust Fund | Short-Term Investment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 3.4 | 6.6 | |
Fair Value, Inputs, Level 2 | Other Investment | Collective Trust Fund | Global Real Estate Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 73.8 | 65.4 | |
Fair Value, Inputs, Level 2 | Other Investment | Collective Trust Fund | Domestic Long-Term Bond | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 508 | 333.7 | |
Fair Value, Inputs, Level 2 | Other Investment | Collective Trust Fund | Emerging Market Large Cap Blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 68.2 | 40.9 | |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 117.6 | 102.8 | |
Fair Value, Inputs, Level 3 | Private Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 49 | 47.7 | 47.4 |
Fair Value, Inputs, Level 3 | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 68.6 | 55.1 | 30.2 |
Fair Value, Inputs, Level 3 | Other Investment | Private Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | 49 | 47.7 | |
Fair Value, Inputs, Level 3 | Other Investment | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets at Fair Value | $68.60 | $55.10 |
Changes_in_Level_3_US_Pension_
Changes in Level 3 U.S. Pension Plan Assets (Detail) (U.S. Plan, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value at beginning of year | $1,342.10 | $1,277.70 |
Actual Return on Plan Assets | 157.1 | 122.1 |
Fair Value at end of year | 1,440.80 | 1,342.10 |
Fair Value, Inputs, Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value at end of year | 117.6 | 102.8 |
Fair Value, Inputs, Level 3 | Private Equity Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value at beginning of year | 47.7 | 47.4 |
Actual Return on Plan Assets | 10.3 | 5.5 |
Purchases | 3.5 | 6.2 |
Sales | -12.5 | -11.4 |
Fair Value at end of year | 49 | 47.7 |
Fair Value, Inputs, Level 3 | Hedge Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value at beginning of year | 55.1 | 30.2 |
Actual Return on Plan Assets | 1.8 | 4.9 |
Realized Gain | 1.7 | |
Purchases | 15 | 20 |
Sales | -5 | |
Fair Value at end of year | $68.60 | $55.10 |
Postretirement_Health_Care_Pla
Postretirement Health Care Plan Status (Detail) (Other Postretirement Plan, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Postretirement Benefit Obligation | $33.40 | $31.20 | $30.60 |
Retirees and Dependents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Postretirement Benefit Obligation | 25 | 22.5 | |
Actives Eligible for Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Postretirement Benefit Obligation | $8.40 | $8.70 |
Postretirement_Healthcare_Amou
Postretirement Healthcare Amount Included in Accumulated Other Comprehensive Income (Detail) (Other Postretirement Plan, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Postretirement Plan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net Actuarial Gain | ($2.40) | ($6) |
Prior Service Benefit | 0 | 0 |
Gross Amount in Accumulated Other Comprehensive Income | -2.4 | -6 |
Income Tax Effect | -0.9 | -2.3 |
Net Amount in Accumulated Other Comprehensive Income | ($1.50) | ($3.70) |
Postretirement_Health_Care_Pla1
Postretirement Health Care Plan Net Periodic (Benefit) Expense (Detail) (Other Postretirement Plan, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Postretirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | $0.10 | $0.10 | $0.20 |
Interest Cost | 1.5 | 1.2 | 1.3 |
Amortization | |||
Net (Gain) Loss | -0.6 | -1.2 | -2.3 |
Prior Service Benefit | -3 | -5.1 | |
Net Periodic Pension Expense (Benefit) | $1 | ($2.90) | ($5.90) |
Postretirement_Health_Care_Pla2
Postretirement Health Care Plan Change in Accumulated in Postretirement Benefit Obligation (Detail) (Other Postretirement Plan, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Postretirement Plan | |||
Schedule of Defined Benefit Plan Change in Accumulated Post Retirement Benefit Obligation [Line Items] | |||
Beginning Balance | $31.20 | $30.60 | |
Service Cost | 0.1 | 0.1 | 0.2 |
Interest Cost | 1.5 | 1.2 | 1.3 |
Actuarial Loss | 3 | 1.9 | |
Net Claims Paid | -3.1 | -2.8 | |
Medicare Subsidy | 0.7 | 0.2 | |
Ending Balance | $33.40 | $31.20 | $30.60 |
Postretirement_Health_Care_Pla3
Postretirement Health Care Plan Estimated Future Benefit Payments (Detail) (Defined Benefit Postretirement Health Coverage, Other Postretirement Plan, USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Defined Benefit Postretirement Health Coverage | Other Postretirement Plan | |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |
2015 | $3 |
2016 | 3.1 |
2017 | 3.1 |
2018 | 3.1 |
2019 | 3.1 |
2020-2024 | $12.90 |
Health_Care_Trend_Rate_Assumpt
Health Care Trend Rate Assumption Effects (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Health Care Cost Trend Rates Assumptions [Line Items] | |
Effect on Postretirement Benefit Obligation - 1 Percentage Point Increase | $1 |
Effect on Total Service and Interest Cost Components - 1 Percentage Point Increase | 0 |
Effect on Postretirement Benefit Obligation - 1 Percentage Point Decrease | -0.9 |
Effect on Total Service and Interest Cost Components - 1 Percentage Point Decrease | $0 |
Compensation_Expense_for_Share
Compensation Expense for Share-Based Payment Arrangements and Associated Tax Impacts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation Expense | $77.70 | $73.80 | $73.90 |
Tax Benefits Recognized | 29.1 | 27.7 | 27.7 |
Restricted Stock Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation Expense | 52.9 | 48 | 44 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation Expense | 12.8 | 18.4 | 27.4 |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation Expense | $12 | $7.40 | $2.50 |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested share-based compensation | $112.60 | ||
Weighted average period of recognition of unvested share-based compensation (in years) | 3 years | ||
Share-Based Compensation Expense | 77.7 | 73.8 | 73.9 |
Stock options under the Plan, the 2002 Plan, and the 1992 Plan | Upper Limit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option maximum term (in years) | 10 years | ||
Options vest and become exercisable after the date of grant (in years) | 4 years | ||
Stock options under the Plan, the 2002 Plan, and the 1992 Plan | Lower Limit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of the fair value for options to purchase common stock on the date the options are granted | 100.00% | ||
Options vest and become exercisable after the date of grant (in years) | 1 year | ||
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock units granted | 249,618 | 296,650 | |
Restricted stock units weighted average grant date fair value | $53.08 | $49.07 | |
performance based units vesting period | 3 years | ||
Aggregate intrinsic value of options granted | 48.8 | 30.6 | |
Vesting term of units granted | 2 years 2 months 12 days | 2 years 8 months 12 days | |
Share-Based Compensation Expense | 12 | 7.4 | 2.5 |
Performance Stock Units | Upper Limit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage at which units can vest | 125.00% | ||
Performance Stock Units | Lower Limit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage at which units can vest | 0.00% | ||
2012 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock authorized for issuance under the Plan | 30,000,000 | ||
Shares available for future grant under the Plan | 29,803,955 | ||
Non Employee Directors, Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total value of stock awards granted | 1 | 1.1 | 0.9 |
Number of stock units granted | 16,770 | 20,599 | 20,148 |
Share-Based Compensation Expense | 1 | 1.1 | 0.9 |
Restricted Stock Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units vesting description | The restricted stock units granted in 2014 predominately vest at a rate equal to 50% on the third anniversary date of the grant and 50% on the fourth anniversary date. | ||
Number of restricted stock units granted | 1,086,241 | 1,181,321 | 988,421 |
Restricted stock units weighted average grant date fair value | $61.17 | $52.82 | $43.72 |
Fair value of restricted stock units vested | $63.90 | $47 | $21.60 |
Restricted Stock Unit Awards | Third Anniversary Of Grant Date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage at which units can vest | 50.00% | ||
Restricted Stock Unit Awards | Fourth Anniversary Of Grant Date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage at which units can vest | 50.00% |
WeightedAverage_Assumptions_Us
Weighted-Average Assumptions Used for Options Granted (Detail) (Stock Options) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options | |||
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | |||
Expected Term (in Years) | 7 years 3 months 18 days | 7 years 7 months 6 days | 7 years 6 months |
Dividend Yield | 2.16% | 2.38% | 2.79% |
Expected Volatility | 30.10% | 29.50% | 34.00% |
Risk-Free Interest Rate | 2.02% | 1.43% | 1.42% |
Information_Pertaining_to_Stoc
Information Pertaining to Stock Options Granted, Vested and Exercised (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant-Date Per Share Fair Value of Stock Options Granted | $16.22 | $12.80 | $11.54 |
Grant-Date Fair Value of Stock Options Vested | $21.90 | $30 | $32.10 |
Stock Options Exercised | |||
Intrinsic Value as of Exercise Date | 35.3 | 26.9 | 12.8 |
Cash Received | 127.5 | 146.2 | 32.3 |
Tax Deduction Benefits Realized | $12.90 | $9.80 | $4.60 |
Changes_in_Nonvested_Stock_Opt
Changes in Nonvested Stock Options (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share | |||
Nonvested stock options outstanding, at beginning of the year | 3,303,826 | ||
Granted | 386,749 | ||
Vested | -1,579,414 | ||
Forfeited or Cancelled | -82,601 | ||
Nonvested stock options outstanding, at end of the year | 2,028,560 | 3,303,826 | |
Weighted-average grant-date fair value per share | |||
Nonvested stock options weighted average grant date fair value at beginning of the year | $13.40 | ||
Granted | $16.22 | $12.80 | $11.54 |
Vested | $13.85 | ||
Forfeited or Cancelled | $13.09 | ||
Nonvested stock options weighted average grant date fair value at end of the year | $13.60 | $13.40 |
Summary_of_Status_of_Stock_Opt
Summary of Status of Stock Options Under Twenty Twelve Plan and Twenty Zero Two Plan (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Shares | |||
Granted | 386,749 | ||
Exercised | -2,515,769 | -3,088,490 | -973,270 |
Stock options under the Plan, the 2002 Plan, and the 1992 Plan | |||
Shares | |||
Options Outstanding, at beginning of the year | 11,992,811 | ||
Granted | 386,749 | ||
Exercised | -2,515,769 | ||
Forfeited, Expired or Cancelled | -192,710 | ||
Options Outstanding, at the end of year | 9,671,081 | ||
Options Exercisable at the end of year | 7,642,521 | ||
Weighted average exercise price per share | |||
Options Outstanding, Beginning Balance | 53.64 | ||
Granted | 60.85 | ||
Exercised | 50.7 | ||
Forfeited, Expired or Cancelled | 53.54 | ||
Options Outstanding, Ending Balance | 54.7 | ||
Options Exercisable, at the end of the year | 55.82 | ||
Weighted average remaining contractual term (years) | |||
Options Outstanding, at the end of the year | 5 years 1 month 6 days | ||
Options Exercisable, at the end of the year | 4 years 6 months | ||
Aggregate intrinsic value | |||
Options Outstanding, at the end of year | 132.6 | ||
Options Exercisable at end of the year | 96.9 |
Status_of_Outstanding_Restrict
Status of Outstanding Restricted Stock Unit Awards Under Twenty Twelve Plan and Twenty Zero Two Plan (Detail) (Restricted Stock Unit Awards, USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
Restricted Stock Unit Awards | |
NUMBER | |
Restricted Stock Unit Awards Outstanding, at beginning of the year | 3,478,886 |
Granted | 1,086,241 |
Distributed | -1,015,253 |
Forfeited | -167,965 |
Stock and Stock Unit Awards Outstanding, at the end of year | 3,381,909 |
Units Convertible, at the end of year | 187,010 |
AGGREGATE INTRINSIC VALUE | |
Restricted Stock Unit Awards Outstanding, at beginning of the year | $215.30 |
Stock and Stock Unit Awards Outstanding, at the end of year | 227.9 |
Units Convertible, at the end of year | $12.60 |
Summary_of_Nonvested_Restricte
Summary of Nonvested Restricted Stock Unit Awards (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
WEIGHTED AVERAGE REMAINING VESTING TERM (YEARS) | ||
Nonvested at December 31, 2013 | 1 year 10 months 24 days | 2 years |
Nonvested at December 31, 2014 | 1 year 10 months 24 days | 2 years |
Restricted Stock Unit Awards | ||
NUMBER | ||
Beginning Balance | 3,297,827 | |
Granted | 1,086,241 | |
Vested | -1,021,204 | |
Forfeited | -167,965 | |
Ending Balance | 3,194,899 | |
WEIGHTED AVERAGE GRANT-DATE FAIR VALUE PER UNIT | ||
Nonvested at beginning of year | 49.76 | |
Granted | 61.17 | |
Vested | 50.92 | |
Forfeited | 52.18 | |
Nonvested at end of year | 53.14 |
CashBased_Compensation_Plans_A
Cash-Based Compensation Plans - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Cash Based Compensation Plan Expense [Line Items] | |||
Cash based compensation expense | $212.40 | $192.40 | $186.80 |
Contingent_Liabilities_Additio
Contingent Liabilities - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Apr. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Line Items] | |||
Possible loss in future periods in excess of accrual | $130 | ||
Legal Settlement Charge | 19.2 | ||
Remaining Visa shares held by Northern Trust, original cost basis | 0 | ||
Fair value of contingent consideration | 55.4 | ||
Settlement of contingent consideration | $55.30 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative [Line Items] | |||
Derivative assets recorded on the consolidated balance sheet, reduced as a result of master netting agreements | $1,900,000,000 | $1,200,000,000 | |
Derivative liabilities recorded on the consolidated balance sheet, reduced as a result of master netting agreements | 1,900,000,000 | 1,200,000,000 | |
Reduction in derivative assets due to cash collateral received from derivative counterparties | 315,800,000 | 210,700,000 | |
Reduction in derivative liabilities due to cash collateral deposited with derivative counterparties | 1,200,000,000 | 767,700,000 | |
This amount represents additional cash collateral received from derivative counterparties not offset against derivative assets | 19,600,000 | 36,400,000 | |
This amount represents additional cash collateral deposited with derivative counterparties not offset against derivative liabilities | 153,200,000 | 39,300,000 | |
Securities posted as collateral | 27,400,000 | 27,600,000 | |
Aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position | 299,500,000 | 257,300,000 | |
Collateral deposited with derivative counterparties for derivatives instruments with credit-risk-related contingent features that are in a liability position | 272,900,000 | 197,000,000 | |
Termination payments that could have been required for derivative instruments with credit-risk-related contingent features | 26,600,000 | 60,300,000 | |
Changes recorded in the fair value of the hedged items in a fair value hedge | 0 | -900,000 | 400,000 |
The net gain/loss recognized in earnings during the period representing the amount of hedge ineffectiveness for fair value hedges of available for sale investment securities, senior notes, or subordinated debt | 0 | -800,000 | 300,000 |
Maximum length of time being hedged for exposure to variability in future cash flows of forecasted foreign currency denominated transactions | 23 months | ||
The net gain/loss recognized in earnings during the period representing the amount of hedge ineffectiveness cash flow hedges | 0 | 0 | 0 |
Net foreign exchange contract gains (losses) reclassified from AOCI | 0 | 0 | 200,000 |
Ineffectiveness from net investment hedges | 0 | 0 | 5,300,000 |
Foreign Currency Denominate | |||
Derivative [Line Items] | |||
Estimated net gain (loss) to be reclassified into earnings within the next twelve months relating to cash flow hedges | -5,700,000 | ||
Available for Sale Investment Securities | |||
Derivative [Line Items] | |||
Estimated net gain (loss) to be reclassified into earnings within the next twelve months relating to cash flow hedges | 3,700,000 | ||
Net Investment Hedges | |||
Derivative [Line Items] | |||
Sterling denominated debt designated as hedges of foreign exchange risk | $243,900,000 | $259,100,000 | |
Client Related and Trading | |||
Derivative [Line Items] | |||
Percentage of derivatives outstanding related to client-related and trading activities | 97.00% | 97.00% |
Notional_and_Fair_Value_Amount
Notional and Fair Value Amounts of Client-related and Trading Derivative Financial Instruments (Detail) (Client Related and Trading, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Notional Value | $262,922.50 | $248,136.70 |
Fair Value Asset | 4,255 | 2,967.50 |
Fair Value Liability | 4,173.30 | 2,963.20 |
Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Notional Value | 257,568.70 | 243,135 |
Fair Value Asset | 4,149.50 | 2,844.70 |
Fair Value Liability | 4,072 | 2,846.20 |
Interest Rate Contracts | ||
Derivative [Line Items] | ||
Notional Value | 5,353.80 | 5,001.70 |
Fair Value Asset | 105.5 | 122.8 |
Fair Value Liability | $101.30 | $117 |
Gains_and_Losses_Recorded_in_C
Gains and Losses Recorded in Consolidated Statements of Income Related to Client Related and Trading Derivative Financial Instruments (Detail) (Client Related and Trading, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Derivative Gain/(Loss) Recognized in Income | $219.40 | $257.10 | $217.70 |
Foreign Exchange Contracts | Foreign Exchange Trading Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Derivative Gain/(Loss) Recognized in Income | 210.1 | 244.4 | 206.1 |
Interest Rate Contracts | Security Commissions and Trading Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Derivative Gain/(Loss) Recognized in Income | $9.30 | $12.70 | $11.60 |
Types_and_Classifications_of_D
Types and Classifications of Derivative Instruments Designated as Hedges (Detail) (Asset And Liability Management, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Notional Value | $6,884.80 | $6,545.80 |
Fair Value Asset | 251.7 | 135.1 |
Fair Value Liability | 48.7 | 136.5 |
FAIR VALUE HEDGES | Senior Notes and Long- Term Subordinated Debt | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Value | 1,250 | 1,250 |
Fair Value Asset | 112.8 | 83.6 |
Fair Value Liability | 2 | 33.4 |
FAIR VALUE HEDGES | Available for Sale Investment Securities | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Value | 2,859.50 | 3,296.90 |
Fair Value Asset | 12.7 | 31.5 |
Fair Value Liability | 28.5 | 44.8 |
CASH FLOW HEDGES | Forecasted Foreign Currency Denominated Transactions | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Notional Value | 344.9 | 314 |
Fair Value Asset | 6 | 10.2 |
Fair Value Liability | 14.8 | 5.5 |
CASH FLOW HEDGES | Available for Sale Investment Securities | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Value | 10 | |
CASH FLOW HEDGES | Available for Sale Investment Securities | Interest Rate Option Contracts | ||
Derivative [Line Items] | ||
Notional Value | 625 | |
Fair Value Asset | 1.3 | |
Net Investment Hedges | Net Investments in Non-U.S. Affiliates | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Notional Value | 1,795.40 | 1,684.90 |
Fair Value Asset | 118.9 | 9.8 |
Fair Value Liability | $3.40 | $52.80 |
Gains_and_Losses_Recorded_in_C1
Gains and Losses Recorded in Consolidated Statement of Income Related to Fair Value Hedges (Detail) (Asset And Liability Management, FAIR VALUE HEDGES, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Derivative Gain/(Loss) Recognized in Income | $67.60 | ($18.60) | $5.90 |
Available for Sale Investment Securities | Interest Rate Swaps | Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Derivative Gain/(Loss) Recognized in Income | -36.4 | 26.3 | -48.4 |
Senior Notes and Long- Term Subordinated Debt | Interest Rate Swaps | Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Derivative Gain/(Loss) Recognized in Income | $104 | ($44.90) | $54.30 |
Cash_Flow_Hedge_Derivative_Gai
Cash Flow Hedge Derivative Gains and Losses Recognized in AOCI and the Amounts Reclassified to Earnings (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Rate Option Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gain/(Loss) Recognized in AOCI | $0.70 | ||
Net Gain/(Loss) Reclassified from AOCI to Earnings | 1.2 | ||
Asset And Liability Management | Foreign Exchange Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gain/(Loss) Recognized in AOCI | -9.4 | 2.1 | -3.2 |
Net Gain/(Loss) Reclassified from AOCI to Earnings | 2.8 | -4.7 | -4.6 |
Asset And Liability Management | Interest Rate Swap Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Gain/(Loss) Reclassified from AOCI to Earnings | -0.2 | ||
Net Gain/(Loss) Reclassified from AOCI to Earnings | Interest Rate Option Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest Income | 1.2 | ||
Net Gain/(Loss) Reclassified from AOCI to Earnings | Asset And Liability Management | Foreign Exchange Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Operating Income | 3.3 | -2.1 | -4.6 |
Other Operating Expense | -0.5 | -2.6 | |
Net Gain/(Loss) Reclassified from AOCI to Earnings | Asset And Liability Management | Interest Rate Swap Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest Income | ($0.20) |
Net_Investment_Hedge_Gains_and
Net Investment Hedge Gains and Losses Recognized in AOCI (Detail) (Net Investment Hedges, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ||
Hedging Instrument Gain/(Loss) Recognized in AOCI (Before Tax) | $142.60 | ($107.30) |
Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Hedging Instrument Gain/(Loss) Recognized in AOCI (Before Tax) | 127.4 | -101.6 |
Sterling Denominated Subordinated Debt | ||
Derivative [Line Items] | ||
Hedging Instrument Gain/(Loss) Recognized in AOCI (Before Tax) | $15.20 | ($5.70) |
Types_of_Risk_Management_Deriv
Types of Risk Management Derivative Instruments Not Formally Designated as Hedges and Their Notional Amounts and Fair Values (Detail) (Nondesignated, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Notional Value | $246.30 | $168.80 |
Fair Value Asset | 0.8 | 1 |
Fair Value Liability | 5.3 | 1.2 |
Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Notional Value | 246.3 | 168.8 |
Fair Value Asset | 0.8 | 1 |
Fair Value Liability | $5.30 | $1.20 |
Gains_and_Losses_Recorded_in_C2
Gains and Losses Recorded in Consolidated Statements of Income related to Derivative Instruments Not Formally Designated as Hedges (Detail) (Nondesignated, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount Recognized in Income | ($14.30) | ($4.10) | $8.70 |
Credit Default Swap Contracts | Others Operating Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount Recognized in Income | -0.1 | -2.6 | |
Foreign Exchange Contracts | Others Operating Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount Recognized in Income | ($14.30) | ($4) | $11.30 |
Offsetting_of_Derivative_Asset
Offsetting of Derivative Assets and of Securities Purchased Under Agreements to Resell Within Consolidated Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivative [Line Items] | ||||
Net Amounts Presented | $1,000 | $500 | ||
Securities Purchased under Agreements to Resell | ||||
Derivative [Line Items] | ||||
Gross Recognized Assets | 1,000 | [1] | 500 | [1] |
Net Amounts Presented | 1,000 | [1] | 500 | [1] |
Gross Amounts Not Offset | 1,000 | [1] | 500 | [1] |
Derivatives | ||||
Derivative [Line Items] | ||||
Gross Recognized Assets | 4,507.50 | [2] | 3,103.60 | [2] |
Gross Amounts Offset | 2,257.10 | [2] | 1,369 | [2] |
Net Amounts Presented | 2,250.40 | [2] | 1,734.60 | [2] |
Net Amount | 2,250.40 | [2],[3] | 1,734.60 | [2],[3] |
Derivatives | Subject to Master Netting Arrangement | ||||
Derivative [Line Items] | ||||
Gross Recognized Assets | 3,675.10 | [2] | 2,850.40 | [2] |
Gross Amounts Offset | 2,257.10 | [2] | 1,369 | [2] |
Net Amounts Presented | 1,418 | [2] | 1,481.40 | [2] |
Net Amount | 1,418 | [2],[3] | 1,481.40 | [2],[3] |
Derivatives | Not Subject to Master Netting Arrangement | ||||
Derivative [Line Items] | ||||
Gross Recognized Assets | 832.4 | [2] | 253.2 | [2] |
Net Amounts Presented | 832.4 | [2] | 253.2 | [2] |
Net Amount | 832.4 | [2],[3] | 253.2 | [2],[3] |
Derivatives | Foreign Exchange Contracts | Over the Counter Derivative | ||||
Derivative [Line Items] | ||||
Gross Recognized Assets | 3,442.80 | [2] | 2,612.50 | [2] |
Gross Amounts Offset | 1,889.80 | [2] | 1,073.30 | [2] |
Net Amounts Presented | 1,553 | [2] | 1,539.20 | [2] |
Net Amount | 1,553 | [2],[3] | 1,539.20 | [2],[3] |
Derivatives | Interest Rate Swaps | Over the Counter Derivative | ||||
Derivative [Line Items] | ||||
Gross Recognized Assets | 183.9 | [2] | 228.8 | [2] |
Gross Amounts Offset | 32.1 | [2] | 47.5 | [2] |
Net Amounts Presented | 151.8 | [2] | 181.3 | [2] |
Net Amount | 151.8 | [2],[3] | 181.3 | [2],[3] |
Derivatives | Interest Rate Swaps | Exchange Cleared | ||||
Derivative [Line Items] | ||||
Gross Recognized Assets | 48.4 | [2] | 9.1 | [2] |
Gross Amounts Offset | 13.1 | [2] | 9.1 | [2] |
Net Amounts Presented | 35.3 | [2] | ||
Net Amount | 35.3 | [2],[3] | ||
Derivatives | Cross Product Netting Adjustment | ||||
Derivative [Line Items] | ||||
Gross Amounts Offset | 6.3 | [2] | 28.4 | [2] |
Derivatives | Cross Product Collateral Adjustment | ||||
Derivative [Line Items] | ||||
Gross Amounts Offset | $315.80 | [2] | $210.70 | [2] |
[1] | Securities purchased under agreements to resell are reported in federal funds sold and securities purchased under agreements to resell in the consolidated balance sheet. Federal funds sold totaled $62.7 million and $29.6 million as of December 31, 2014 and 2013, respectively. | |||
[2] | Derivative assets are reported in other assets in the consolidated balance sheet. Other assets (excluding derivative assets) totaled $3,614.7 million and $3,029.4 million as of December 31, 2014 and 2013, respectively. | |||
[3] | Northern Trust did not possess any cash collateral that was not offset in the consolidated balance sheet that could have been used to offset the net amounts presented in the consolidated balance sheet as of December 31, 2014 and 2013. |
Offsetting_of_Derivative_Asset1
Offsetting of Derivative Assets and of Securities Purchased Under Agreements to Resell Within Consolidated Balance Sheet (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Other Assets (excluding Derivative Assets) | $3,614.70 | $3,029.40 |
Federal Funds Sold | $62.70 | $29.60 |
Offsetting_of_Derivative_Liabi
Offsetting of Derivative Liabilities and of Securities Sold Under Agreements to Repurchase Within Consolidated Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivative [Line Items] | ||||
Net Amounts Presented | $885.10 | $917.30 | ||
Securities Sold under Agreements to Repurchase | ||||
Derivative [Line Items] | ||||
Gross Recognized Liabilities | 885.1 | 917.3 | ||
Net Amounts Presented | 885.1 | 917.3 | ||
Gross Amounts Not Offset | 885.1 | 917.3 | ||
Derivatives | ||||
Derivative [Line Items] | ||||
Gross Recognized Liabilities | 4,227.30 | [1] | 3,100.90 | [1] |
Gross Amounts Offset | 3,173.30 | [1] | 1,926 | [1] |
Net Amounts Presented | 1,054 | [1] | 1,174.90 | [1] |
Net Amount | 1,054 | [1],[2] | 1,174.90 | [1],[2] |
Derivatives | Subject to Master Netting Arrangement | ||||
Derivative [Line Items] | ||||
Gross Recognized Liabilities | 3,562.80 | [1] | 2,234.20 | [1] |
Gross Amounts Offset | 3,173.30 | [1] | 1,926 | [1] |
Net Amounts Presented | 389.5 | [1] | 308.2 | [1] |
Net Amount | 389.5 | [1],[2] | 308.2 | [1],[2] |
Derivatives | Not Subject to Master Netting Arrangement | ||||
Derivative [Line Items] | ||||
Gross Recognized Liabilities | 664.5 | [1] | 866.7 | [1] |
Net Amounts Presented | 664.5 | [1] | 866.7 | [1] |
Net Amount | 664.5 | [1],[2] | 866.7 | [1],[2] |
Derivatives | Foreign Exchange Contracts | Over the Counter Derivative | ||||
Derivative [Line Items] | ||||
Gross Recognized Liabilities | 3,431 | [1] | 2,039 | [1] |
Gross Amounts Offset | 1,889.80 | [1] | 1,073.30 | [1] |
Net Amounts Presented | 1,541.20 | [1] | 965.7 | [1] |
Net Amount | 1,541.20 | [1],[2] | 965.7 | [1],[2] |
Derivatives | Interest Rate Swaps | Over the Counter Derivative | ||||
Derivative [Line Items] | ||||
Gross Recognized Liabilities | 118.7 | [1] | 163.7 | [1] |
Gross Amounts Offset | 32.1 | [1] | 47.5 | [1] |
Net Amounts Presented | 86.6 | [1] | 116.2 | [1] |
Net Amount | 86.6 | [1],[2] | 116.2 | [1],[2] |
Derivatives | Interest Rate Swaps | Exchange Cleared | ||||
Derivative [Line Items] | ||||
Gross Recognized Liabilities | 13.1 | [1] | 31.5 | [1] |
Gross Amounts Offset | 13.1 | [1] | 9.1 | [1] |
Net Amounts Presented | 22.4 | [1] | ||
Net Amount | 22.4 | [1],[2] | ||
Derivatives | Cross Product Netting Adjustment | ||||
Derivative [Line Items] | ||||
Gross Amounts Offset | 6.3 | [1] | 28.4 | [1] |
Derivatives | Cross Product Collateral Adjustment | ||||
Derivative [Line Items] | ||||
Gross Amounts Offset | $1,232 | [1] | $767.70 | [1] |
[1] | Derivative liabilities are reported in other liabilities in the consolidated balance sheet. Other liabilities (excluding derivative liabilities) totaled $2,794.1 million and $2,338.4 million as of December 31, 2014 and 2013, respectively. | |||
[2] | Northern Trust did not place any cash collateral with counterparties that was not offset in the consolidated balance sheet that could have been used to offset the net amounts presented in the consolidated balance sheet as of December 31, 2014 and 2013. |
Offsetting_of_Derivative_Liabi1
Offsetting of Derivative Liabilities and of Securities Sold Under Agreements to Repurchase Within Consolidated Balance Sheet (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Other liabilities | $2,794.10 | $2,338.40 |
Commitments_and_Letters_of_Cre
Commitments and Letters of Credit (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Commitments to Extend Credit | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Commitments and Letters of Credit | $35,127.60 | [1] | $32,174.80 | [1] |
Standby Letters of Credit | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Commitments and Letters of Credit | 4,468.10 | [2] | 4,451.10 | [2] |
Commercial Letters of Credit | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Commitments and Letters of Credit | $20.80 | $24.80 | ||
[1] | These amounts exclude $481.4 million and $418.5 million of commitments participated to others at December 31, 2014 and 2013, respectively. | |||
[2] | These amounts include $221.4 million and $208.9 million of standby letters of credit secured by cash deposits or participated to others as of December 31, 2014 and 2013, respectively. The weighted average maturity of standby letters of credit was 27 months at December 31, 2014 and 25 months at December 31, 2013. |
Commitments_and_Letters_of_Cre1
Commitments and Letters of Credit (Parenthetical) (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Commitments to Extend Credit | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Legally Binding Commitments | $481.40 | $418.50 | ||
Commitments and Letters of Credit | 35,127.60 | [1] | 32,174.80 | [1] |
Standby Letters of Credit | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Commitments and Letters of Credit | 4,468.10 | [2] | 4,451.10 | [2] |
Weighted average maturity of standby letters of credit | 27 months | 25 months | ||
Secured by Cash Deposits or Participated to Others | Standby Letters of Credit | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Commitments and Letters of Credit | $221.40 | $208.90 | ||
[1] | These amounts exclude $481.4 million and $418.5 million of commitments participated to others at December 31, 2014 and 2013, respectively. | |||
[2] | These amounts include $221.4 million and $208.9 million of standby letters of credit secured by cash deposits or participated to others as of December 31, 2014 and 2013, respectively. The weighted average maturity of standby letters of credit was 27 months at December 31, 2014 and 25 months at December 31, 2013. |
Off_Balance_Sheet_Financial_In
Off Balance Sheet Financial Instruments - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Other Off Balance Sheet Financial Instruments [Line Items] | ||
Minimum collateral maintained against fair value of client securities loaned plus accrued interest | 100.00% | |
Estimated credit exposure from clearing activities | $60,000,000 | $73,000,000 |
Indemnification Agreement | ||
Other Off Balance Sheet Financial Instruments [Line Items] | ||
Securities loaned and subject to indemnification | 98,100,000,000 | 82,700,000,000 |
Credit loss liability | $0 | $0 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Tax Credit Structures | ||
Variable Interest Entity [Line Items] | ||
Carrying amounts | $208,900,000 | $222,300,000 |
Exposure to loss from liquidity arrangements and obligations to purchase assets | 0 | |
Liabilities related to unfunded commitments | 15,600,000 | 19,800,000 |
Affordable housing tax credits and other tax benefits | 58,100,000 | |
Leveraged Leasing Transactions | ||
Variable Interest Entity [Line Items] | ||
Carrying amounts | 547,600,000 | 671,200,000 |
Exposure to loss from liquidity arrangements and obligations to purchase assets | $0 | |
Leveraged Leasing Transactions | Lower Limit | ||
Variable Interest Entity [Line Items] | ||
Funding of asset's cost via an equity interest | 20.00% | 20.00% |
Funding of asset's cost via third party non recourse debt holders | 70.00% | 70.00% |
Leveraged Leasing Transactions | Upper Limit | ||
Variable Interest Entity [Line Items] | ||
Funding of asset's cost via an equity interest | 30.00% | 30.00% |
Funding of asset's cost via third party non recourse debt holders | 80.00% | 80.00% |
Pledged_and_Restricted_Assets_
Pledged and Restricted Assets - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Amount of securities and loans pledged | $32,300,000,000 |
Fair value of accepted collateral | 1,000,000,000 |
Amount of securities repledged or sold collateral | 0 |
Average deposits maintained to meet Federal Reserve Bank reserve requirements | 1,300,000,000 |
US Government Corporations and Agencies Securities | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Amount of securities and loans pledged | 23,100,000,000 |
Obligations of States and Political Subdivisions | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Amount of securities and loans pledged | 122,900,000 |
Loans | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Amount of securities and loans pledged | 9,100,000,000 |
Collateral Requirements | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Amount of securities and loans pledged | 5,900,000,000 |
Available for Sale Investment Securities | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Amount of securities and loans pledged | $884,800,000 |
Restrictions_on_Subsidiary_Div1
Restrictions on Subsidiary Dividends and Loans or Advances - Additional Information (Detail) | Dec. 31, 2014 |
Restrictions on Subsidiary Dividends and Loans or Advances [Line Items] | |
Regulatory limits on transfer of capital and surplus by a banking subsidiary to the Corporation and certain of its affiliates | 10.00% |
Regulatory limits on aggregate transfer of capital and surplus by banking subsidiaries to the Corporation | 20.00% |
Reporting_Segments_and_Related2
Reporting Segments and Related Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | |
Number of reporting segments | 3 |
Earnings_Contribution_of_North
Earnings Contribution of Northern Trust's Reporting Segments (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||
Trust, Investment and Other Servicing Fees | $2,832.80 | $2,609.80 | $2,405.50 | |||
Foreign Exchange Trading Income | 210.1 | 244.4 | 206.1 | |||
Other Noninterest Income | 282.8 | 302 | 294.2 | |||
Net Interest Income (FTE) | 1,034.90 | [1] | 965.6 | [1] | 1,031.10 | [1] |
Revenue (FTE) | 4,360.60 | [1] | 4,121.80 | [1] | 3,936.90 | [1] |
Provision for Credit Losses | 6 | 20 | 25 | |||
Noninterest Expense | 3,135 | 2,993.80 | 2,878.80 | |||
Income before Income Taxes | 1,219.60 | [1] | 1,108 | [1] | 1,033.10 | [1] |
Provision (Benefit) for Income Taxes | 407.8 | [1] | 376.7 | [1] | 345.8 | [1] |
Net Income | 811.8 | 731.3 | 687.3 | |||
Average Assets | 104,083.50 | 94,857.70 | 92,975.50 | |||
Noninterest Income | 3,325.70 | 3,156.20 | 2,905.80 | |||
Corporate and Institutional Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Trust, Investment and Other Servicing Fees | 1,584 | 1,443.80 | 1,334.10 | |||
Foreign Exchange Trading Income | 200.4 | 238.8 | 193.5 | |||
Other Noninterest Income | 177.9 | 177.3 | 193.6 | |||
Net Interest Income (FTE) | 310 | [2] | 275.9 | [2] | 280.1 | [2] |
Revenue (FTE) | 2,272.30 | [2] | 2,135.80 | [2] | 2,001.30 | [2] |
Provision for Credit Losses | 5.8 | -3.4 | -2.1 | |||
Noninterest Expense | 1,732.80 | 1,657.90 | 1,599.90 | |||
Income before Income Taxes | 533.7 | [2] | 481.3 | [2] | 403.5 | [2] |
Provision (Benefit) for Income Taxes | 149.4 | [2] | 145.6 | [2] | 114.3 | [2] |
Net Income | 384.3 | 335.7 | 289.2 | |||
Percentage of Consolidated Net Income | 47.00% | 46.00% | 42.00% | |||
Average Assets | 59,462.90 | 53,308.20 | 49,904 | |||
Wealth Management | ||||||
Segment Reporting Information [Line Items] | ||||||
Trust, Investment and Other Servicing Fees | 1,248.80 | 1,166 | 1,071.40 | |||
Foreign Exchange Trading Income | 9.7 | 5.6 | 12.6 | |||
Other Noninterest Income | 98.3 | 116.7 | 93.6 | |||
Net Interest Income (FTE) | 536.1 | [2] | 557.7 | [2] | 629.9 | [2] |
Revenue (FTE) | 1,892.90 | [2] | 1,846 | [2] | 1,807.50 | [2] |
Provision for Credit Losses | 0.2 | 23.4 | 27.1 | |||
Noninterest Expense | 1,268.70 | 1,215 | 1,182.30 | |||
Income before Income Taxes | 624 | [2] | 607.6 | [2] | 598.1 | [2] |
Provision (Benefit) for Income Taxes | 234.8 | [2] | 229.2 | [2] | 226.4 | [2] |
Net Income | 389.2 | 378.4 | 371.7 | |||
Percentage of Consolidated Net Income | 48.00% | 52.00% | 54.00% | |||
Average Assets | 23,629.30 | 22,887.60 | 23,917.90 | |||
Treasury and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Interest Income (FTE) | 188.8 | [2] | 132 | [2] | 121.1 | [2] |
Revenue (FTE) | 195.4 | [2] | 140 | [2] | 128.1 | [2] |
Noninterest Expense | 133.5 | 120.9 | 96.6 | |||
Income before Income Taxes | 61.9 | [2] | 19.1 | [2] | 31.5 | [2] |
Provision (Benefit) for Income Taxes | 23.6 | [2] | 1.9 | [2] | 5.1 | [2] |
Net Income | 38.3 | 17.2 | 26.4 | |||
Percentage of Consolidated Net Income | 5.00% | 2.00% | 4.00% | |||
Average Assets | 20,991.30 | 18,661.90 | 19,153.60 | |||
Noninterest Income | $6.60 | $8 | $7 | |||
[1] | Stated on an FTE basis. The consolidated figures include $29.4 million, $32.5 million, and $40.8 million, of FTE adjustments for 2014, 2013, and 2012, respectively. | |||||
[2] | Stated on an FTE basis. |
Earnings_Contribution_of_North1
Earnings Contribution of Northern Trust's Reporting Segments (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Fully taxable equivalent basis adjustments | $29.40 | $32.50 | $40.80 |
Distribution_of_Total_Assets_a
Distribution of Total Assets and Operating Performance (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Geographic Reporting Disclosure [Line Items] | ||||||
Total Assets | $109,946.50 | $102,947.30 | $97,463.80 | |||
Total Revenue | 4,331.20 | [1] | 4,089.30 | [1] | 3,896.10 | [1] |
Income Before Income Taxes | 1,190.20 | 1,075.50 | 992.3 | |||
Net Income | 811.8 | 731.3 | 687.3 | |||
Non - U.S. | ||||||
Geographic Reporting Disclosure [Line Items] | ||||||
Total Assets | 28,326.10 | 30,241.30 | 29,198.40 | |||
Total Revenue | 1,341.80 | [1] | 1,101 | [1] | 992.5 | [1] |
Income Before Income Taxes | 446.5 | 272.4 | 194.9 | |||
Net Income | 322.7 | 201.3 | 147.6 | |||
U.S. | ||||||
Geographic Reporting Disclosure [Line Items] | ||||||
Total Assets | 81,620.40 | 72,706 | 68,265.40 | |||
Total Revenue | 2,989.40 | [1] | 2,988.30 | [1] | 2,903.60 | [1] |
Income Before Income Taxes | 743.7 | 803.1 | 797.4 | |||
Net Income | $489.10 | $530 | $539.70 | |||
[1] | Total revenue is comprised of net interest income and noninterest income. |
RiskBased_Capital_Amounts_and_
Risk-Based Capital Amounts and Ratios for Northern Trust on Consolidated Basis and for Bank (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Parent Company | ||||
Tier 1 Capital | ||||
Balance | $7,853.20 | [1] | ||
Ratio | 13.40% | [1] | ||
Minimum to qualify as well-capitalized balance | 3,526.40 | [1] | ||
Minimum to qualify as well-capitalized ratio | 6.00% | [1] | ||
Total Capital | ||||
Balance | 9,294.90 | [1] | ||
Ratio | 15.80% | [1] | ||
Minimum to qualify as well-capitalized balance | 5,877.40 | [1] | ||
Minimum to qualify as well-capitalized ratio | 10.00% | [1] | ||
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets) | ||||
Balance | 7,853.20 | [1] | ||
Ratio | 7.90% | [1] | ||
Minimum to qualify as well-capitalized balance | 4,953.70 | [1] | ||
Minimum to qualify as well-capitalized ratio | 5.00% | [1] | ||
Parent Company | COMMON STOCK | ||||
Tier 1 Capital | ||||
Balance | 7,853.20 | [1] | ||
Ratio | 12.90% | [1] | ||
The Northern Trust Company | ||||
Tier 1 Capital | ||||
Balance | 6,765.60 | [1] | ||
Ratio | 11.50% | [1] | ||
Minimum to qualify as well-capitalized balance | 3,515.20 | [1] | ||
Minimum to qualify as well-capitalized ratio | 6.00% | [1] | ||
Total Capital | ||||
Balance | 8,366.20 | [1] | ||
Ratio | 14.30% | [1] | ||
Minimum to qualify as well-capitalized balance | 5,858.80 | [1] | ||
Minimum to qualify as well-capitalized ratio | 10.00% | [1] | ||
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets) | ||||
Balance | 6,765.60 | [1] | ||
Ratio | 6.80% | [1] | ||
Minimum to qualify as well-capitalized balance | 4,939.90 | [1] | ||
Minimum to qualify as well-capitalized ratio | 5.00% | [1] | ||
The Northern Trust Company | COMMON STOCK | ||||
Tier 1 Capital | ||||
Balance | 6,765.60 | [1] | ||
Ratio | 11.50% | [1] | ||
Advanced Approach | Parent Company | ||||
Tier 1 Capital | ||||
Balance | 8,318 | [2] | ||
Ratio | 13.20% | [2] | ||
Minimum to qualify as well-capitalized balance | 3,773.80 | [2] | ||
Minimum to qualify as well-capitalized ratio | 6.00% | [2] | ||
Total Capital | ||||
Balance | 9,449.20 | [2] | ||
Ratio | 15.00% | [2] | ||
Minimum to qualify as well-capitalized balance | 6,289.70 | [2] | ||
Minimum to qualify as well-capitalized ratio | 10.00% | [2] | ||
Advanced Approach | Parent Company | COMMON STOCK | ||||
Tier 1 Capital | ||||
Balance | 7,813.30 | [2] | ||
Ratio | 12.40% | [2] | ||
Advanced Approach | The Northern Trust Company | ||||
Tier 1 Capital | ||||
Balance | 7,327.30 | [2] | ||
Ratio | 12.00% | [2] | ||
Minimum to qualify as well-capitalized balance | 3,665.80 | [2] | ||
Minimum to qualify as well-capitalized ratio | 6.00% | [2] | ||
Total Capital | ||||
Balance | 8,420.40 | [2] | ||
Ratio | 13.80% | [2] | ||
Minimum to qualify as well-capitalized balance | 6,109.70 | [2] | ||
Minimum to qualify as well-capitalized ratio | 10.00% | [2] | ||
Advanced Approach | The Northern Trust Company | COMMON STOCK | ||||
Tier 1 Capital | ||||
Balance | 7,327.30 | [2] | ||
Ratio | 12.00% | [2] | ||
Standardized Approach | Parent Company | ||||
Tier 1 Capital | ||||
Balance | 8,317.60 | [3] | ||
Ratio | 13.30% | [3] | ||
Minimum to qualify as well-capitalized balance | 3,759.10 | [3] | ||
Minimum to qualify as well-capitalized ratio | 6.00% | [3] | ||
Total Capital | ||||
Balance | 9,723 | [3] | ||
Ratio | 15.50% | [3] | ||
Minimum to qualify as well-capitalized balance | 6,265.10 | [3] | ||
Minimum to qualify as well-capitalized ratio | 10.00% | [3] | ||
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets) | ||||
Balance | 8,317.60 | [3] | ||
Ratio | 7.80% | [3] | ||
Minimum to qualify as well-capitalized balance | 5,340.70 | [3] | ||
Minimum to qualify as well-capitalized ratio | 5.00% | [3] | ||
Standardized Approach | Parent Company | COMMON STOCK | ||||
Tier 1 Capital | ||||
Balance | 7,813.30 | [3] | ||
Ratio | 12.50% | [3] | ||
Standardized Approach | The Northern Trust Company | ||||
Tier 1 Capital | ||||
Balance | 7,327.30 | [3] | ||
Ratio | 11.80% | [3] | ||
Minimum to qualify as well-capitalized balance | 3,738 | [3] | ||
Minimum to qualify as well-capitalized ratio | 6.00% | [3] | ||
Total Capital | ||||
Balance | 8,695.10 | [3] | ||
Ratio | 14.00% | [3] | ||
Minimum to qualify as well-capitalized balance | 6,229.90 | [3] | ||
Minimum to qualify as well-capitalized ratio | 10.00% | [3] | ||
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets) | ||||
Balance | 7,327.30 | [3] | ||
Ratio | 6.90% | [3] | ||
Minimum to qualify as well-capitalized balance | 5,324.90 | [3] | ||
Minimum to qualify as well-capitalized ratio | 5.00% | [3] | ||
Standardized Approach | The Northern Trust Company | COMMON STOCK | ||||
Tier 1 Capital | ||||
Balance | $7,327.30 | [3] | ||
Ratio | 11.80% | [3] | ||
[1] | The December 31, 2013, capital balances and ratios were calculated in accordance with Basel I requirements. | |||
[2] | Effective with the second quarter of 2014, Northern Trust exited its parallel run. Accordingly, the December 31, 2014, capital balances and ratios are calculated in compliance with the Basel III Advanced Approach final rules released by the Federal Reserve Board on July 2, 2013. | |||
[3] | Standardized Approach capital components in 2014 are determined by Basel III phased-in requirements and risk-weighted assets are determined by Basel I requirements. The December 31, 2014, ratios calculated under the Standardized Approach comply with the final rules released by the Federal Reserve Board on July 2, 2013. |
Condensed_Balance_Sheet_Detail
Condensed Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | ||||||
ASSETS | ||||||
Cash on Deposit with Subsidiary Bank | $3,050.60 | $3,162.40 | $3,752.70 | $4,315.30 | ||
Securities | 33,734 | 30,720.30 | ||||
Buildings and Equipment | 444.3 | 458.8 | ||||
Other Assets | 5,865.10 | 4,764 | ||||
Total Assets | 109,946.50 | 102,947.30 | 97,463.80 | |||
LIABILITIES | ||||||
Senior Notes | 1,497 | [1],[2] | 1,996.60 | [1],[2] | ||
Long Term Debt | 1,615.10 | 1,709.20 | ||||
Floating Rate Capital Debt | 277.2 | 277.1 | ||||
Other Liabilities | 3,848.10 | 3,513.30 | ||||
Total Liabilities | 101,497.60 | 95,035.30 | ||||
STOCKHOLDERS' EQUITY | ||||||
Preferred Stock | 388.5 | |||||
Common Stock | 408.6 | 408.6 | ||||
Retained Earnings | 7,625.40 | 7,134.80 | ||||
Accumulated Other Comprehensive Loss | -319.7 | -244.3 | -283 | -345.6 | ||
Treasury Stock | -704.8 | -422.8 | ||||
Total Stockholders' Equity | 8,448.90 | 7,912 | 7,527 | |||
Total Liabilities and Stockholders' Equity | 109,946.50 | 102,947.30 | ||||
Parent Company | ||||||
ASSETS | ||||||
Cash on Deposit with Subsidiary Bank | 869.4 | 1,566.40 | 6.5 | 6.5 | ||
Time Deposits with Subsidiary Banks | 0 | 0 | ||||
Securities | 2.3 | 5.3 | ||||
Buildings and Equipment | 0 | 0 | ||||
Other Assets | 605.8 | 608.8 | ||||
Total Assets | 11,483.50 | 11,490.70 | ||||
LIABILITIES | ||||||
Senior Notes | 1,497 | 1,996.60 | ||||
Long Term Debt | 793 | 717.8 | ||||
Floating Rate Capital Debt | 277.2 | 277.1 | ||||
Other Liabilities | 467.4 | 587.2 | ||||
Total Liabilities | 3,034.60 | 3,578.70 | ||||
STOCKHOLDERS' EQUITY | ||||||
Preferred Stock | 388.5 | |||||
Common Stock | 408.6 | 408.6 | ||||
Additional Paid-in Capital | 1,050.90 | 1,035.70 | ||||
Retained Earnings | 7,625.40 | 7,134.80 | ||||
Accumulated Other Comprehensive Loss | -319.7 | -244.3 | ||||
Treasury Stock | -704.8 | -422.8 | ||||
Total Stockholders' Equity | 8,448.90 | 7,912 | ||||
Total Liabilities and Stockholders' Equity | 11,483.50 | 11,490.70 | ||||
Parent Company | Banks Industry | ||||||
ASSETS | ||||||
Advances to Wholly-Owned Subsidiaries | 2,273.50 | 2,035 | ||||
Investments in Wholly-Owned Subsidiaries | 7,604.50 | 7,101.70 | ||||
Parent Company | Nonbank Subsidiaries | ||||||
ASSETS | ||||||
Advances to Wholly-Owned Subsidiaries | 5 | 5 | ||||
Investments in Wholly-Owned Subsidiaries | $123 | $168.50 | ||||
[1] | Not redeemable prior to maturity. | |||||
[2] | Debt issue costs are recorded as an asset and amortized on a straight-line basis over the life of the Note. |
Condensed_Statement_of_Income_
Condensed Statement of Income (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
OPERATING INCOME | ||||||
Total Operating Income | $4,331.20 | [1] | $4,089.30 | [1] | $3,896.10 | [1] |
OPERATING EXPENSES | ||||||
Interest Expense | 181.4 | 222.4 | 297.4 | |||
Other Operating Expenses | 272.1 | 314.2 | 282.9 | |||
Total Noninterest Expense | 3,135 | 2,993.80 | 2,878.80 | |||
Benefit for Income Taxes | -378.4 | -344.2 | -305 | |||
NET INCOME | 811.8 | 731.3 | 687.3 | |||
Preferred Stock Dividends | 9.5 | |||||
Net Income Applicable to Common Stock | 802.3 | 731.3 | 687.3 | |||
Parent Company | ||||||
OPERATING INCOME | ||||||
Intercompany Interest and Other Charges | 42.9 | 33.2 | 30 | |||
Interest and Other Income | -0.3 | 9 | 10.6 | |||
Total Operating Income | 346.4 | 943.9 | 506.8 | |||
OPERATING EXPENSES | ||||||
Interest Expense | 66.6 | 78.3 | 74.9 | |||
Other Operating Expenses | 17 | 20.8 | 13 | |||
Total Noninterest Expense | 83.6 | 99.1 | 87.9 | |||
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries | 262.8 | 844.8 | 418.9 | |||
Benefit for Income Taxes | 16.6 | 24.2 | 21.1 | |||
Income before Equity in Undistributed Net Income of Subsidiaries | 279.4 | 869 | 440 | |||
Equity in Undistributed Net Income of Subsidiaries | 532.4 | -131 | 247.3 | |||
NET INCOME | 811.8 | 731.3 | 687.3 | |||
Preferred Stock Dividends | 9.5 | |||||
Net Income Applicable to Common Stock | 802.3 | 731.3 | 687.3 | |||
Parent Company | Banks Industry | ||||||
OPERATING INCOME | ||||||
Dividends from Subsidiaries | 300 | 880 | 440 | |||
OPERATING EXPENSES | ||||||
Equity in Undistributed Net Income of Subsidiaries | 522.1 | -152.5 | 266.9 | |||
Parent Company | Nonbank Subsidiaries | ||||||
OPERATING INCOME | ||||||
Dividends from Subsidiaries | 3.8 | 21.7 | 26.2 | |||
OPERATING EXPENSES | ||||||
Equity in Undistributed Net Income of Subsidiaries | $10.30 | $14.80 | ($19.60) | |||
[1] | Total revenue is comprised of net interest income and noninterest income. |
Condensed_Statement_of_Cash_Fl
Condensed Statement of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES: | |||
Net Income | $811.80 | $731.30 | $687.30 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities: | |||
Change in Accrued Income Taxes | 55.2 | -31.5 | 18.5 |
Other, net | 86.1 | 176.9 | 16.6 |
Net Cash Provided by Operating Activities | 936 | 839.3 | 814.4 |
INVESTING ACTIVITIES: | |||
Change in Time Deposits with Banks | 3,297.20 | -782.1 | -2,107.10 |
Purchases of Securities - Available for Sale | -12,668 | -8,168 | -19,546.40 |
Proceeds from Sale, Maturity and Redemption of Securities - Available for Sale | 11,476.60 | 8,456.40 | 21,183.30 |
Other, net | -157.4 | 109.4 | -161.2 |
Net Cash (Used in) Provided by Investing Activities | -8,212.40 | -5,683.30 | 1,627.60 |
FINANCING ACTIVITIES: | |||
Change in Senior Notes and Long-Term Debt | 750 | 500 | |
Proceeds from Issuance of Preferred Stock - Series C | 388.5 | ||
Treasury Stock Purchased | -480.7 | -309.7 | -162.4 |
Net Proceeds from Stock Options | 127.5 | 146.2 | 106.8 |
Cash Dividends Paid on Common Stock | -302.9 | -220.6 | -354.3 |
Other, net | -222.4 | 226.7 | |
Net Cash Provided by (Used in) Financing Activities | 7,073.70 | 4,388.30 | -3,072.90 |
Decrease in Cash and Due from Banks | -111.8 | -590.3 | -562.6 |
Cash and Due from Banks at Beginning of Year | 3,162.40 | 3,752.70 | 4,315.30 |
Cash and Due from Banks at End of Year | 3,050.60 | 3,162.40 | 3,752.70 |
Parent Company | |||
OPERATING ACTIVITIES: | |||
Net Income | 811.8 | 731.3 | 687.3 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities: | |||
Equity in Undistributed Net Income of Subsidiaries | -532.4 | 131 | -247.3 |
Change in Prepaid Expenses | 0.2 | -1.1 | -0.9 |
Change in Accrued Income Taxes | -30.7 | -18.1 | 34.7 |
Other, net | 56.1 | 102.6 | -36 |
Net Cash Provided by Operating Activities | 305 | 945.7 | 437.8 |
INVESTING ACTIVITIES: | |||
Change in Time Deposits with Banks | 1,691.40 | -422.2 | |
Purchases of Securities - Available for Sale | -0.4 | ||
Proceeds from Sale, Maturity and Redemption of Securities - Available for Sale | 2.9 | 0.2 | 94.3 |
Change in Capital Investments in Subsidiaries | -13 | 0.3 | |
Advances to Wholly-Owned Subsidiaries | -238.5 | -1,000 | |
Other, net | 1.1 | 1.8 | |
Net Cash (Used in) Provided by Investing Activities | -234.5 | 680.4 | -328 |
FINANCING ACTIVITIES: | |||
Change in Senior Notes and Long-Term Debt | -500 | 317.9 | 300 |
Proceeds from Issuance of Preferred Stock - Series C | 388.5 | ||
Treasury Stock Purchased | -480.7 | -309.7 | -162.4 |
Net Proceeds from Stock Options | 127.5 | 146.2 | 106.8 |
Cash Dividends Paid on Common Stock | -302.9 | -220.6 | -354.3 |
Other, net | 0.1 | 0.1 | |
Net Cash Provided by (Used in) Financing Activities | -767.5 | -66.2 | -109.8 |
Decrease in Cash and Due from Banks | -697 | 1,559.90 | |
Cash and Due from Banks at Beginning of Year | 1,566.40 | 6.5 | 6.5 |
Cash and Due from Banks at End of Year | $869.40 | $1,566.40 | $6.50 |