2013 Q4 Form 10-K Financial Statement

#000119312515065963 Filed on February 26, 2015

View on sec.gov

Income Statement

Concept 2013 Q4 2012 Q4 2012
Revenue $1.070B $1.038B $3.896B
YoY Change 3.1% -0.1% 3.35%
Cost Of Revenue $24.60M $67.90M $297.4M
YoY Change -63.77% -18.09% -25.56%
Gross Profit $1.045B $969.7M $3.896B
YoY Change 7.79% 1.46% 3.35%
Gross Profit Margin 97.7% 93.46% 100.0%
Selling, General & Admin $543.7M $512.6M $2.067B
YoY Change 6.07% 1.18% 1.59%
% of Gross Profit 52.02% 52.86% 53.05%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $81.00M $74.00M $289.4M
YoY Change 9.46% 8.03% 9.17%
% of Gross Profit 7.75% 7.63% 7.43%
Operating Expenses $799.5M $736.3M $2.904B
YoY Change 8.58% 1.66% 0.61%
Operating Profit $245.7M $233.4M $992.3M
YoY Change 5.27% 0.86% 12.29%
Interest Expense $297.4M
YoY Change -25.56%
% of Operating Profit 29.97%
Other Income/Expense, Net $0.00
YoY Change -100.0%
Pretax Income $245.7M $223.2M $992.3M
YoY Change 10.08% 30.22% 12.29%
Income Tax $76.00M $55.50M $305.0M
% Of Pretax Income 30.93% 24.87% 30.74%
Net Earnings $169.7M $167.7M $687.3M
YoY Change 1.19% 28.8% 13.87%
Net Earnings / Revenue 15.86% 16.16% 17.64%
Basic Earnings Per Share $2.82
Diluted Earnings Per Share $708.0K $699.0K $2.81
COMMON SHARES
Basic Shares Outstanding 240.4M shares
Diluted Shares Outstanding 240.9M shares

Balance Sheet

Concept 2013 Q4 2012 Q4 2012
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.162B $3.753B $3.753B
YoY Change -15.75% -13.02% -13.02%
Cash & Equivalents
Short-Term Investments $30.72B $31.03B
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $3.162B $3.753B $3.753B
YoY Change -15.75% -13.02% -13.02%
LONG-TERM ASSETS
Property, Plant & Equipment $458.8M $469.9M $470.0M
YoY Change -2.36% -4.97% -5.05%
Goodwill $540.7M $537.8M
YoY Change 0.54% 1.09%
Intangibles
YoY Change
Long-Term Investments $63.56B $31.03B $31.03B
YoY Change 104.8% 0.11% 0.11%
Other Assets
YoY Change
Total Long-Term Assets $99.79B $93.71B $93.71B
YoY Change 6.48% -2.29% -2.29%
TOTAL ASSETS
Total Short-Term Assets $3.162B $3.753B $3.753B
Total Long-Term Assets $99.79B $93.71B $93.71B
Total Assets $102.9B $97.46B $97.46B
YoY Change 5.63% -2.75% -2.75%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $85.98B $82.89B $82.89B
YoY Change 3.73% -2.13% -3.33%
Long-Term Debt Due $1.559B $367.0M $367.0M
YoY Change 324.8% -60.62% -60.62%
Total Short-Term Liabilities $87.54B $83.26B $83.26B
YoY Change 5.15% -2.77% -3.95%
LONG-TERM LIABILITIES
Long-Term Debt $3.983B $4.104B $4.104B
YoY Change -2.95% -9.54% 17.86%
Other Long-Term Liabilities $3.513B $2.577B $2.577B
YoY Change 36.32% -12.53% -12.53%
Total Long-Term Liabilities $7.496B $6.681B $6.681B
YoY Change 12.2% -10.72% 3.94%
TOTAL LIABILITIES
Total Short-Term Liabilities $87.54B $83.26B $83.26B
Total Long-Term Liabilities $7.496B $6.681B $6.681B
Total Liabilities $95.04B $89.94B $89.94B
YoY Change 5.67% -3.4% -3.4%
SHAREHOLDERS EQUITY
Retained Earnings $7.135B $6.703B
YoY Change 6.45% 6.35%
Common Stock $1.444B $1.421B
YoY Change 1.62% 2.54%
Preferred Stock
YoY Change
Treasury Stock (at cost) $422.8M $314.0M
YoY Change 34.65% 39.25%
Treasury Stock Shares 7.849M shares 6.257M shares
Shareholders Equity $7.912B $7.527B $7.527B
YoY Change
Total Liabilities & Shareholders Equity $102.9B $97.46B $97.46B
YoY Change 5.63% -2.75% -2.75%

Cashflow Statement

Concept 2013 Q4 2012 Q4 2012
OPERATING ACTIVITIES
Net Income $169.7M $167.7M $687.3M
YoY Change 1.19% 28.8% 13.87%
Depreciation, Depletion And Amortization $81.00M $74.00M $289.4M
YoY Change 9.46% 8.03% 9.17%
Cash From Operating Activities -$121.6M $23.20M $814.4M
YoY Change -624.14% -98.33% -35.07%
INVESTING ACTIVITIES
Capital Expenditures -$137.3M -$135.2M $73.30M
YoY Change 1.55% 40.54% -24.36%
Acquisitions
YoY Change
Other Investing Activities -$6.056B -$3.570B $161.2M
YoY Change 69.63% -44.01% -199.02%
Cash From Investing Activities -$6.193B -$3.705B $1.628B
YoY Change 67.15% -42.75% -110.58%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $162.4M
YoY Change 105.57%
Debt Paid & Issued, Net $923.7M
YoY Change 4.88%
Cash From Financing Activities 6.814B 3.979B -3.073B
YoY Change 71.27% -22.83% -119.44%
NET CHANGE
Cash From Operating Activities -121.6M 23.20M 814.4M
Cash From Investing Activities -6.193B -3.705B 1.628B
Cash From Financing Activities 6.814B 3.979B -3.073B
Net Change In Cash 499.2M 296.5M -630.9M
YoY Change 68.36% 297.45% -137.79%
FREE CASH FLOW
Cash From Operating Activities -$121.6M $23.20M $814.4M
Capital Expenditures -$137.3M -$135.2M $73.30M
Free Cash Flow $15.70M $158.4M $741.1M
YoY Change -90.09% -89.35% -35.97%

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26500000
CY2014Q4 ntrs Cash Collateral Deposited With Not Offset Against Derivative Liabilities
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CY2014Q4 ntrs Earnings Of Certain Non United States Subsidiaries Indefinitely Reinvested
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177400000
CY2014Q4 ntrs Securities Continuous Unrealized Loss Position Aggregate Losses
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87600000
CY2014Q4 ntrs Credit Risk Related Contingent Features Collateral Threshold
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26600000
CY2014Q4 ntrs Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value
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3309100000
CY2014Q4 ntrs Derivative Assets Reduced For Master Netting Agreements
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CY2014Q4 ntrs Percentage Of Aggregate Transfer Of Capital And Surplus By Banking Subsidiaries
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CY2014Q4 ntrs Securities Held As Collateral At Cost
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CY2014Q4 ntrs Credit Risk To Banks
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CY2014Q4 ntrs Loans Receivable Overdraft Advances
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CY2014Q4 ntrs Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value
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CY2014Q4 ntrs Loans And Leases Receivable Commitment To Lend
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CY2014Q4 ntrs Securities Lending Related Collateral Maintenance
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CY2014Q4 ntrs Loans And Leases Receivable Allowance For Losses
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CY2014Q4 ntrs Derivative Liabilities Reduced For Master Netting Agreements
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CY2014Q4 ntrs Smaller Homogeneous Loan Threshold
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250000
CY2014Q4 ntrs Percentage Of Proceeds In Excess Of Original Project Costs To Be Received
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CY2014Q4 ntrs Upper Limit Of Generally Required Loan To Collateral Value For Residential Real Estate Loans
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CY2014Q4 ntrs Commitments To Extend Credit
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1600000000
CY2014Q4 ntrs Credit Risk To Banks Non Interest Bearing Balances Held At Banks
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1100000000
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CY2014Q4 ntrs Loans Receivable Commercial Real Estate Commercial Mortgage Apartments And Multi Family
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CY2014Q4 ntrs Deferred Tax Liabilities Compensation And Benefits
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CY2014Q4 ntrs Other Assets Excluding Derivatives And Non Financial Instruments
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CY2014Q4 ntrs Unfunded Commitments And Standby Letters Of Credit Allowance
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28900000
CY2014Q4 ntrs Loans Receivable Commercial Real Estate Commercial Mortgage Other
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125700000
CY2014Q4 ntrs Estimated Credit Exposure From Clearing Activities
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60000000
CY2014Q4 ntrs Loans Receivable Commercial Real Estate Commercial Mortgage Industrial And Warehouse
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323700000
CY2014Q4 ntrs Securities Continuous Unrealized Loss Position Twelve Months Or Longer Aggregate Losses
SecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerAggregateLosses
61100000
CY2014Q4 ntrs Long Term Debt Qualifying As Risk Based Capital
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1009100000
CY2014Q4 ntrs Other Liabilities Excluding Derivatives And Non Financial Instruments
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CY2014Q4 ntrs Cash Collateral Received From Not Offset Against Derivative Assets
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19600000
CY2014Q4 ntrs Number Of Securities Unrealized Losses Position
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515 Investment
CY2014Q4 ntrs Securities Continuous Unrealized Loss Position Fair Value
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10410800000
CY2014Q4 ntrs Loans Receivable Commercial Real Estate Commercial Mortgage Office
LoansReceivableCommercialRealEstateCommercialMortgageOffice
735500000
CY2014Q4 ntrs Lower Limit Of Generally Required Loan To Collateral Value For Residential Real Estate Loans
LowerLimitOfGenerallyRequiredLoanToCollateralValueForResidentialRealEstateLoans
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CY2014Q4 ntrs Client Security Settlement Receivables
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1568800000
CY2014Q4 ntrs Loans Receivable Commercial Real Estate Other
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187500000
CY2014Q4 ntrs Loans Receivable Commercial Construction Acquisition And Development
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256800000
CY2014Q4 ntrs Overdrawn Demand Deposit Accounts
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92100000
CY2014Q4 ntrs Trust Preferred Securities
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277200000
CY2014Q2 us-gaap Business Combination Contingent Consideration Arrangements Change In Amount Of Contingent Consideration Liability1
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CY2013 us-gaap Earnings Per Share Diluted
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2.99
CY2013 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
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CY2013 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
1289527 shares
CY2013 us-gaap Net Cash Provided By Used In Operating Activities
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839300000
CY2013 us-gaap Stock Issued During Period Shares Share Based Compensation
StockIssuedDuringPeriodSharesShareBasedCompensation
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CY2013 us-gaap Treasury Stock Acquired Average Cost Per Share
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55.90
CY2013 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2013 us-gaap Earnings Per Share Basic
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3.01
CY2013 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2013 us-gaap Stock Issued During Period Shares Stock Options Exercised
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CY2013 us-gaap Stock Redeemed Or Called During Period Shares
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CY2013 us-gaap Unrecognized Tax Benefits Period Increase Decrease
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CY2013 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2013 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
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2400000
CY2013 us-gaap Transfer Of Other Real Estate
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24700000
CY2013 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
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CY2013 us-gaap Payments To Acquire Available For Sale Securities
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CY2013 us-gaap Payments To Acquire Held To Maturity Securities
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5715500000
CY2013 us-gaap Payments For Proceeds From Other Interest Earning Assets
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CY2013 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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CY2013 us-gaap Noninterest Income Other
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302000000
CY2013 us-gaap Noninterest Income Other Operating Income
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166500000
CY2013 us-gaap Net Income Loss Available To Common Stockholders Diluted
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719500000
CY2013 us-gaap Interest Income Expense After Provision For Loan Loss
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CY2013 us-gaap Interest Income Expense Net
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CY2013 us-gaap Interest Income Securities Tax Exempt
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11600000
CY2013 us-gaap Interest And Fee Income Loans And Leases
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743100000
CY2013 us-gaap Increase Decrease In Other Operating Capital Net
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CY2013 us-gaap Impaired Financing Receivable Interest Income Accrual Method
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3800000
CY2013 us-gaap Accretion Amortization Of Discounts And Premiums Investments
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CY2013 us-gaap Repayments Of Long Term Debt
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804400000
CY2013 us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Reductions Securities Sold
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33500000
CY2013 us-gaap Other Comprehensive Income Loss Net Of Tax
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38700000
CY2013 us-gaap Noninterest Income
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3156200000
CY2013 us-gaap Interest Income Deposits With Financial Institutions
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142100000
CY2013 us-gaap Increase Decrease In Receivables
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206200000
CY2013 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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27700000
CY2013 us-gaap Change In Unrealized Gain Loss On Hedged Item In Fair Value Hedge1
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CY2013 us-gaap Allowance For Loan And Lease Losses Adjustments Net
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CY2013 us-gaap Payments For Proceeds From Loans And Leases
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CY2013 us-gaap Increase Decrease In Derivative Assets
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250600000
CY2013 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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1075500000
CY2013 us-gaap Gain Loss On Fair Value Hedge Ineffectiveness Net
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-800000
CY2013 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Liability Transfers Into Level3
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0
CY2013 us-gaap Pension Contributions
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20700000
CY2013 us-gaap Payments For Software
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293000000
CY2013 us-gaap Payments Of Dividends Common Stock
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220600000
CY2013 us-gaap Gain Loss On Cash Flow Hedge Ineffectiveness Net
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CY2013 us-gaap Foreign Currency Transaction Gain Loss Before Tax
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244400000
CY2013 us-gaap Comprehensive Income Net Of Tax
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770000000
CY2013 us-gaap Income Taxes Paid
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53700000
CY2013 us-gaap Employee Service Share Based Compensation Tax Benefit Realized From Exercise Of Stock Options
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CY2013 us-gaap Payments For Repurchase Of Common Stock
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CY2013 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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CY2013 us-gaap Marketable Securities Gain Loss
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CY2013 us-gaap Interest And Dividend Income Operating
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CY2013 us-gaap Gain Loss On Discontinuation Of Cash Flow Hedge Due To Forecasted Transaction Probable Of Not Occurring Net
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CY2013 us-gaap Fees And Commissions Mortgage Banking
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CY2013 us-gaap Revenues
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CY2013 us-gaap Payments To Acquire Property Plant And Equipment
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CY2013 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2013 us-gaap Net Income Loss
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CY2013 us-gaap Interest Paid
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CY2013 us-gaap Interest Income Securities Taxable
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CY2013 us-gaap Increase Decrease In Federal Funds Purchased
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CY2013 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Out Of Level3
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CY2013 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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CY2013 us-gaap Income Tax Reconciliation Tax Exempt Income
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CY2013 us-gaap Amount Of Ineffectiveness On Net Investment Hedges
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CY2013 us-gaap Allowance For Loan And Lease Loss Recovery Of Bad Debts
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19600000
CY2013 us-gaap Adjustment To Additional Paid In Capital Income Tax Effect From Share Based Compensation Net
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CY2013 us-gaap Allocated Share Based Compensation Expense
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CY2013 us-gaap Deferred Income Tax Expense Benefit
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CY2013 us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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CY2013 us-gaap Income Tax Examination Penalties And Interest Expense
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CY2013 us-gaap Interest Expense
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CY2013 us-gaap Proceeds From Payments For In Securities Sold Under Agreements To Repurchase
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CY2013 us-gaap Professional Fees
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CY2013 us-gaap Allowance For Loan And Lease Losses Write Offs
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CY2013 us-gaap Deferred State And Local Income Tax Expense Benefit
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CY2013 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Liability Transfers Out Of Level3
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CY2013 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Into Level3
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CY2013 us-gaap Increase Decrease In Accrued Income Taxes Payable
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CY2013 us-gaap Provision For Loan And Lease Losses
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CY2013 us-gaap Proceeds From Maturities Prepayments And Calls Of Held To Maturity Securities
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CY2013 us-gaap Cash And Cash Equivalents Period Increase Decrease
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CY2013 us-gaap Depreciation Nonproduction
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92300000
CY2013 us-gaap Federal Deposit Insurance Corporation Premium Expense
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CY2013 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
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CY2013 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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CY2013 us-gaap Income Tax Expense Benefit
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CY2013 us-gaap Operating Leases Rent Expense Net
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CY2013 us-gaap Employee Service Share Based Compensation Cash Received From Exercise Of Stock Options
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CY2013 us-gaap Interest Expense Securities Sold Under Agreements To Repurchase
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CY2013 us-gaap Occupancy Net
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CY2013 us-gaap Proceeds From Repayments Of Short Term Debt
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226700000
CY2013 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
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CY2013 us-gaap Current State And Local Tax Expense Benefit
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CY2013 us-gaap Marketing And Advertising Expense
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CY2013 us-gaap Proceeds From Stock Options Exercised
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CY2013 ntrs Securities Sold Under Agreements To Repurchase Maximum Month End Balance During Period
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CY2013 ntrs Segment Reporting Information Consolidated Average Assets
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CY2013 ntrs Securities Sold Under Agreements To Repurchase Average Interest Rate Paid During Period
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CY2013 ntrs Securities Lending Legal Settlement Charge
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CY2013 ntrs Securities Purchased Under Agreement To Resell Average Interest Rate Earned During Period
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CY2013 ntrs Income Loss Before Income Taxes Including Fully Taxable Equivalent Adjustment
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CY2013 ntrs Interest Expense Senior Notes
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CY2013 ntrs Other Than Temporary Impairment Losses Recognized In Earnings
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CY2013 ntrs Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Weighted Average Remaining Vesting Term
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CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod
386749 shares
CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Options Forfeited Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue
13.09
CY2014 dei Document Type
DocumentType
10-K
CY2014 dei Entity Registrant Name
EntityRegistrantName
NORTHERN TRUST CORP
CY2014 dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
Yes
CY2014 dei Trading Symbol
TradingSymbol
NTRS
CY2014 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2"><b>Note 2&#xA0;&#x2013;&#xA0;Recent Accounting Pronouncements</b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font size="1">&#xA0;</font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.&#xA0;2014-09, &#x201C;Revenue from Contracts with Customers (Topic 606).&#x201D; 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&#xA0;15, 2016. Northern Trust is currently assessing the impact of adoption of ASU 2014-09.</font></p> <p style="margin-top:0px;margin-bottom:0px"><font size="1">&#xA0;</font></p> <p style="margin-top:0px;margin-bottom:0px; text-indent:3%"> <font style="font-family:Times New Roman" size="2">In June 2014, the FASB issued ASU No.&#xA0;2014-11, &#x201C;Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.&#x201D; 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&#xA0;15, 2014. The adoption of this ASU will result in additional disclosures, but is not expected to impact significantly Northern Trust&#x2019;s consolidated financial position or results of&#xA0;operations.</font></p> <p style="margin-top:0px;margin-bottom:0px; text-indent:3%"> <font style="font-family:Times New Roman" size="2">In June 2014, the FASB also issued ASU No.&#xA0;2014-12, &#x201C;Compensation &#x2013; 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.&#x201D; 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&#xA0;15, 2015 with earlier adoption permitted. The adoption of this ASU is not expected to impact significantly Northern Trust&#x2019;s consolidated financial position or results of operations.</font></p> <p style="margin-top:0px;margin-bottom:0px; text-indent:3%"> <font style="font-family:Times New Roman" size="2">In August 2014, the FASB issued ASU No.&#xA0;2014-14, &#x201C;Receivables &#x2013; 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).&#x201D; 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&#xA0;15, 2014. The adoption of this ASU is not expected to significantly impact Northern Trust&#x2019;s consolidated financial position or results of&#xA0;operations.</font></p> <p style="margin-top:0px;margin-bottom:0px; text-indent:3%"> <font style="font-family:Times New Roman" size="2">In November 2014, the FASB issued ASU No.&#xA0;2014-16, &#x201C;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)&#x201D;. 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&#xA0;15, 2015. The adoption of this ASU is not expected to significantly impact Northern Trust&#x2019;s consolidated financial position or results of operations.</font></p> </div>
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
16.22
CY2014 dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
CY2014 dei Entity Voluntary Filers
EntityVoluntaryFilers
No
CY2014 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1
P3Y
CY2014 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
1890465 shares
CY2014 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
936000000
CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Options Forfeited Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares
82601 shares
CY2014 us-gaap Maximum Length Of Time Foreign Currency Cash Flow Hedge
MaximumLengthOfTimeForeignCurrencyCashFlowHedge
P23M
CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares
1579414 shares
CY2014 us-gaap Stock Issued During Period Shares Share Based Compensation
StockIssuedDuringPeriodSharesShareBasedCompensation
1040015 shares
CY2014 us-gaap Use Of Estimates
UseOfEstimates
<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; TEXT-INDENT: 3%"> <font style="FONT-FAMILY: Times New Roman" size="2"><b>C. Use of Estimates in the Preparation of Financial Statements.</b> 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.</font></p> </div>
CY2014 dei Document Period End Date
DocumentPeriodEndDate
2014-12-31
CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue
13.85
CY2014 us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
64.20
CY2014 dei Amendment Flag
AmendmentFlag
false
CY2014 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
CY2014 dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2014
CY2014 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
237720255 shares
CY2014 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
3.34
CY2014 us-gaap Schedule Of Resale Agreements
ScheduleOfResaleAgreements
<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-FAMILY: arial" size="1"><b>TABLE 54: SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL</b></font></p> <p style="MARGIN-BOTTOM: -6px; MARGIN-TOP: 0px"><font size="1">&#xA0;</font></p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="80%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> <font style="FONT-FAMILY: arial" size="1">($ In Millions)</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: arial" size="1"><b>2014</b></font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: arial" size="1">2013</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -2em"><font style="FONT-FAMILY: ARIAL" size="1">Balance at December&#xA0;31</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1"><b>1,000.0</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">500.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -2em"><font style="FONT-FAMILY: ARIAL" size="1">Average Balance During the Year</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1"><b>742.1</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">396.3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -2em"><font style="FONT-FAMILY: ARIAL" size="1">Average Interest Rate Earned During the Year</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1"><b>0.45</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1"><b>%&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">0.46</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1">%&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -2em"><font style="FONT-FAMILY: ARIAL" size="1">Maximum Month-End Balance During the Year</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1"><b>1,000.0</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">571.5</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1">&#xA0;&#xA0;</font></td> </tr> </table> </div>
CY2014 dei Entity Central Index Key
EntityCentralIndexKey
0000073124
CY2014 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35 pure
CY2014 us-gaap Schedule Of Repurchase Agreements
ScheduleOfRepurchaseAgreements
<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-FAMILY: arial" size="1"><b>TABLE 55: SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE</b></font></p> <p style="MARGIN-BOTTOM: -6px; MARGIN-TOP: 0px"><font size="1">&#xA0;</font></p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="80%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> <font style="FONT-FAMILY: arial" size="1">($ In Millions)</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: arial" size="1"><b>2014</b></font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> <font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: arial" size="1">2013</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> <font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -2em"><font style="FONT-FAMILY: ARIAL" size="1">Balance at December&#xA0;31</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1"><b>885.1</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">917.3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -2em"><font style="FONT-FAMILY: ARIAL" size="1">Average Balance During the Year</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1"><b>989.6</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">594.3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -2em"><font style="FONT-FAMILY: ARIAL" size="1">Average Interest Rate Paid During the&#xA0;Year</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1"><b>0.04</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1"><b>%&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">0.07</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1">%&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -2em"><font style="FONT-FAMILY: ARIAL" size="1">Maximum Month-End Balance During the&#xA0;Year</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1"><b>1,038.1</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">917.3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="1">&#xA0;&#xA0;</font></td> </tr> </table> </div>
CY2014 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
FY
CY2014 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
1517588 shares
CY2014 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-8800000
CY2014 us-gaap Noninterest Income Other
NoninterestIncomeOther
282800000
CY2014 us-gaap Description Of Lessee Leasing Arrangements Capital Leases
DescriptionOfLesseeLeasingArrangementsCapitalLeases
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.
CY2014 us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2"><b>Note 24&#xA0;&#x2013;&#xA0;Contingent Liabilities</b></font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <font size="1">&#xA0;</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2"><b>Legal Proceedings.</b>&#xA0;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.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">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&#x2019;s operating results for a particular period.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">Under GAAP, (i)&#xA0;an event is &#x201C;probable&#x201D; if the &#x201C;future event or events are likely to occur&#x201D;; (ii)&#xA0;an event is &#x201C;reasonably possible&#x201D; if &#x201C;the chance of the future event or events occurring is more than remote but less than likely&#x201D;; and (iii)&#xA0;an event is &#x201C;remote&#x201D; if &#x201C;the chance of the future event or events occurring is slight.&#x201D;</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">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)&#xA0;will be decided by a jury, (ii)&#xA0;are in early stages, (iii)&#xA0;involve uncertainty as to the likelihood of a class being certified or the ultimate size of the class, (iv)&#xA0;are subject to appeals or motions, (v)&#xA0;involve significant factual issues to be resolved, including with respect to the amount of damages, (vi)&#xA0;do not specify the amount of damages sought, or (vii)&#xA0;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.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">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.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">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&#xA0;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.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">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.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">As previously disclosed, a number of participants in Northern Trust&#x2019;s securities lending program, which is associated with Northern Trust&#x2019;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.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">In April 2014, Northern Trust received a subpoena from the U.S. Securities and Exchange Commission (SEC) seeking documents related to Northern Trust&#x2019;s securities lending activities. Northern Trust is cooperating with the SEC in this investigation.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">In January 2015 the Public Prosecutor&#x2019;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&#x2019;s decision whether to bring the recommended criminal charges. If charges are brought, NTFS will contest them in the French court.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <font size="1">&#xA0;</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2"><b>Visa Membership.</b>&#xA0;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&#xA0;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.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">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&#x2019;s indemnification liability. Northern Trust&#x2019;s indemnification liability was fully eliminated as of December&#xA0;31, 2011. On October&#xA0;19, 2012, Visa signed a settlement agreement with plaintiff representatives for binding settlement of the indemnified litigation. On January&#xA0;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.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2">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.</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <font size="1">&#xA0;</font></p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: medium 'Times New Roman'; MARGIN-TOP: 0px; LETTER-SPACING: normal; TEXT-INDENT: 3%; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: 'Times New Roman'" size="2"><b>Contingent Purchase Consideration.</b>&#xA0;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&#xA0;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.</font></p> </div>
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