Please use the financial statements. Refer to the company’s most recent annual r
ID: 2591354 • Letter: P
Question
Please use the financial statements. Refer to the company’s most recent annual report to answer the following question.
What does the company disclose regarding its investments in debt securities (i.e., held to maturity, available for sale, trading securities)? If the company has available for sale and/or trading securities was there a fair value adjustment?
Link to data in 2016 financial statements: https://www.northerntrust.com/documents/annual-reports/northern-trust-annual-report-2016.pdf?bc=25213143
Explanation / Answer
For the year ended December 31, 2016 the company had following investments in debt securities: (In millions)
Available for sale = $35,579.8
Held to Maturity = $8,921.1
Trading Account = $0.3
Total Securities = $44,501.2
The company uses fair value adjustment for valuing available for sale and trading securities. Fair value of securities is determined by external pricing vendors.