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Large Accelerated Filer
x
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Accelerated Filer
¨
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Non-Accelerated Filer
¨
(Do not check if a smaller reporting company)
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Smaller Reporting Company
¨
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Emerging Growth Company
¨
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•
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the impact of any investigations, reviews, market studies or other activity by regulatory or law enforcement authorities, including the ongoing investigations by the European Commission, the Australian Royal Commission and the U.K. FCA;
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•
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the impact from lawsuits, other contingent liabilities and loss contingencies arising from errors and omissions, breach of fiduciary duty or other claims against us;
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•
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our organization's ability to maintain adequate safeguards to protect the security of our information systems and confidential, personal or proprietary information, particularly given the large volume of our vendor network and the need to patch software vulnerabilities;
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•
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our ability to compete effectively and adapt to changes in the competitive environment, including to respond to disintermediation, digital disruption and other types of innovation;
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•
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the financial and operational impact of complying with laws and regulations where we operate, including cybersecurity and data privacy regulations such as the E.U.’s General Data Protection Regulation, anti-corruption laws and trade sanctions regimes;
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•
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the regulatory, contractual and reputational risks that arise based on insurance placement activities and various broker revenue streams;
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•
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the extent to which we manage risks associated with the various services, including fiduciary and investments and other advisory services;
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•
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our ability to successfully recover if we experience a business continuity problem due to cyberattack, natural disaster or otherwise;
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•
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the impact of changes in tax laws, guidance and interpretations, including related to certain provisions of the U.S. Tax Cuts and Jobs Act, or disagreements with tax authorities;
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•
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the impact of fluctuations in foreign exchange and interest rates on our results;
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•
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the impact of macroeconomic, political, regulatory or market conditions on us, our clients and the industries in which we operate; and
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•
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the impact of changes in accounting rules or in our accounting estimates or assumptions, including the impact of the adoption of the new revenue recognition, pension and lease accounting standards.
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ITEM 1.
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FINANCIAL STATEMENTS
(UNAUDITED)
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ITEM 2.
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OF OPERATIONS
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ITEM 3.
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ITEM 4.
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ITEM 1.
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ITEM 1A.
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ITEM 2.
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ITEM 3.
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ITEM 4.
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ITEM 5.
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ITEM 6.
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Item 1.
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Financial Statements.
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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(In millions, except per share amounts)
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2018
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2017
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2018
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2017
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Revenue
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$
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3,734
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$
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3,495
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$
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7,734
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$
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6,998
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Expense:
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Compensation and benefits
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2,135
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1,998
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4,359
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4,003
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Other operating expenses
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908
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796
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1,776
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1,545
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Operating expenses
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3,043
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2,794
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6,135
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5,548
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Operating income
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691
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701
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1,599
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1,450
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||||
Other net benefit credits
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65
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63
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131
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123
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Interest income
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3
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2
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6
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4
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Interest expense
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(68
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)
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(60
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)
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(129
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)
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(118
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)
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Investment income
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28
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5
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28
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5
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Income before income taxes
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719
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711
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1,635
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1,464
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Income tax expense
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183
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204
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403
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379
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Net income before non-controlling interests
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536
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507
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1,232
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1,085
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Less: Net income attributable to non-controlling interests
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5
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6
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11
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15
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Net income attributable to the Company
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$
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531
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$
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501
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$
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1,221
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$
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1,070
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Net income Per Share Attributable to the Company:
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Basic
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$
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1.05
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$
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0.98
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$
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2.41
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$
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2.08
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Diluted
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$
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1.04
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$
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0.96
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$
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2.38
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$
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2.05
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Average number of shares outstanding:
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Basic
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507
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514
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507
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514
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Diluted
|
512
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520
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513
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521
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Shares outstanding at June 30,
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505
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513
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505
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513
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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(In millions)
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2018
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2017
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2018
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2017
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Net income before non-controlling interests
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$
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536
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$
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507
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$
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1,232
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$
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1,085
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Other comprehensive (loss) income, before tax:
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Foreign currency translation adjustments
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(529
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)
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290
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(301
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)
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525
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Unrealized investment gains
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—
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24
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—
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19
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Gain (loss) related to pension/post-retirement plans
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192
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(5
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)
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108
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28
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Other comprehensive (loss) income, before tax
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(337
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)
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309
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(193
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)
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572
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Income tax expense on other comprehensive income
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23
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13
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15
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20
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Other comprehensive (loss) income, net of tax
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(360
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)
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|
296
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(208
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)
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|
552
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Comprehensive income
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176
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|
803
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1,024
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1,637
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Less: comprehensive income attributable to non-controlling interest
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5
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6
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11
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15
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Comprehensive income attributable to the Company
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$
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171
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$
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797
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$
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1,013
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$
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1,622
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(In millions, except share amounts)
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(Unaudited)
June 30,
2018
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December 31,
2017 |
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ASSETS
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Current assets:
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Cash and cash equivalents
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$
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1,036
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$
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1,205
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Receivables
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Commissions and fees
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4,288
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3,777
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Advanced premiums and claims
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62
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65
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Other
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367
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401
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4,717
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4,243
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Less-allowance for doubtful accounts and cancellations
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(116
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)
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(110
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)
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Net receivables
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4,601
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4,133
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Other current assets
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538
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224
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Total current assets
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6,175
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5,562
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Goodwill
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9,177
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9,089
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Other intangible assets
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1,234
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1,274
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Fixed assets
(net of accumulated depreciation and amortization of $1,857 at June 30, 2018 and $1,826 at December 31, 2017) |
698
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712
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Pension related assets
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1,808
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1,693
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Deferred tax assets
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532
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669
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Other assets
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1,535
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1,430
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$
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21,159
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$
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20,429
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(In millions, except share amounts)
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(Unaudited)
June 30,
2018
|
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December 31,
2017 |
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LIABILITIES AND EQUITY
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|
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||||
Current liabilities:
|
|
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|
||||
Short-term debt
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$
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439
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$
|
262
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Accounts payable and accrued liabilities
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2,246
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|
|
2,083
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|
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Accrued compensation and employee benefits
|
1,103
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|
|
1,718
|
|
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Accrued income taxes
|
216
|
|
|
199
|
|
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Dividends payable
|
212
|
|
|
—
|
|
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Total current liabilities
|
4,216
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|
|
4,262
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||
Fiduciary liabilities
|
5,118
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4,847
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Less – cash and investments held in a fiduciary capacity
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(5,118
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)
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(4,847
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)
|
||
|
—
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|
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—
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|
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Long-term debt
|
5,813
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|
5,225
|
|
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Pension, post-retirement and post-employment benefits
|
1,768
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|
|
1,888
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|
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Liabilities for errors and omissions
|
303
|
|
|
301
|
|
||
Other liabilities
|
1,262
|
|
|
1,311
|
|
||
Commitments and contingencies
|
—
|
|
|
—
|
|
||
Equity:
|
|
|
|
||||
Preferred stock, $1 par value, authorized 6,000,000 shares, none issued
|
—
|
|
|
—
|
|
||
Common stock, $1 par value, authorized
|
|
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|
||||
1,600,000,000 shares, issued 560,641,640 shares at June 30, 2018
|
|
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|
||||
and December 31, 2017
|
561
|
|
|
561
|
|
||
Additional paid-in capital
|
732
|
|
|
784
|
|
||
Retained earnings
|
14,131
|
|
|
13,140
|
|
||
Accumulated other comprehensive loss
|
(4,265
|
)
|
|
(4,043
|
)
|
||
Non-controlling interests
|
81
|
|
|
83
|
|
||
|
11,240
|
|
|
10,525
|
|
||
Less – treasury shares, at cost, 55,507,129 shares at June 30, 2018
|
|
|
|
||||
and 51,930,135 shares at December 31, 2017
|
(3,443
|
)
|
|
(3,083
|
)
|
||
Total equity
|
7,797
|
|
|
7,442
|
|
||
|
$
|
21,159
|
|
|
$
|
20,429
|
|
For the Six Months Ended June 30,
|
|
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|
||||
(In millions)
|
2018
|
|
|
2017
|
|
||
Operating cash flows:
|
|
|
|
||||
Net income before non-controlling interests
|
$
|
1,232
|
|
|
$
|
1,085
|
|
Adjustments to reconcile net income to cash provided by operations:
|
|
|
|
||||
Depreciation and amortization of fixed assets and capitalized software
|
159
|
|
|
156
|
|
||
Amortization of intangible assets
|
88
|
|
|
80
|
|
||
Adjustments and payments related to contingent consideration liability
|
2
|
|
|
(13
|
)
|
||
Provision for deferred income taxes
|
34
|
|
|
42
|
|
||
(Gain) loss on investments
|
(28
|
)
|
|
(5
|
)
|
||
(Gain) loss on disposition of assets
|
(1
|
)
|
|
9
|
|
||
Share-based compensation expense
|
99
|
|
|
75
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Net receivables
|
(388
|
)
|
|
(318
|
)
|
||
Other current assets
|
4
|
|
|
(18
|
)
|
||
Other assets
|
(10
|
)
|
|
(34
|
)
|
||
Accounts payable and accrued liabilities
|
30
|
|
|
52
|
|
||
Accrued compensation and employee benefits
|
(614
|
)
|
|
(579
|
)
|
||
Accrued income taxes
|
18
|
|
|
45
|
|
||
Contributions to pension and other benefit plans in excess of current year expense/credit
|
(178
|
)
|
|
(214
|
)
|
||
Other liabilities
|
(10
|
)
|
|
9
|
|
||
Effect of exchange rate changes
|
(24
|
)
|
|
(29
|
)
|
||
Net cash provided by operations
|
413
|
|
|
343
|
|
||
Financing cash flows:
|
|
|
|
||||
Purchase of treasury shares
|
(500
|
)
|
|
(400
|
)
|
||
Net increase in commercial paper
|
175
|
|
|
100
|
|
||
Proceeds from issuance of debt
|
592
|
|
|
987
|
|
||
Repayments of debt
|
(6
|
)
|
|
(256
|
)
|
||
Shares withheld for taxes on vested units – treasury shares
|
(62
|
)
|
|
(48
|
)
|
||
Issuance of common stock from treasury shares
|
48
|
|
|
94
|
|
||
Payments of deferred and contingent consideration for acquisitions
|
(85
|
)
|
|
(97
|
)
|
||
Distributions of non-controlling interests
|
(11
|
)
|
|
(13
|
)
|
||
Dividends paid
|
(383
|
)
|
|
(351
|
)
|
||
Net cash (used for) provided by financing activities
|
(232
|
)
|
|
16
|
|
||
Investing cash flows:
|
|
|
|
||||
Capital expenditures
|
(135
|
)
|
|
(144
|
)
|
||
Net (purchases) sales of long-term investments
|
(3
|
)
|
|
12
|
|
||
Proceeds from sales of fixed assets
|
1
|
|
|
4
|
|
||
Dispositions
|
4
|
|
|
—
|
|
||
Acquisitions
|
(144
|
)
|
|
(412
|
)
|
||
Other, net
|
(2
|
)
|
|
2
|
|
||
Net cash used for investing activities
|
(279
|
)
|
|
(538
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(71
|
)
|
|
119
|
|
||
Decrease in cash and cash equivalents
|
(169
|
)
|
|
(60
|
)
|
||
Cash and cash equivalents at beginning of period
|
1,205
|
|
|
1,026
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,036
|
|
|
$
|
966
|
|
For the Six Months Ended June 30,
|
|
|
|
||||
(In millions, except per share amounts)
|
2018
|
|
|
2017
|
|
||
COMMON STOCK
|
|
|
|
||||
Balance, beginning and end of period
|
$
|
561
|
|
|
$
|
561
|
|
ADDITIONAL PAID-IN CAPITAL
|
|
|
|
||||
Balance, beginning of year
|
$
|
784
|
|
|
$
|
842
|
|
Change in accrued stock compensation costs
|
(26
|
)
|
|
(10
|
)
|
||
Issuance of shares under stock compensation plans and employee stock purchase plans
|
(26
|
)
|
|
(69
|
)
|
||
Balance, end of period
|
$
|
732
|
|
|
$
|
763
|
|
RETAINED EARNINGS
|
|
|
|
||||
Balance, beginning of year
|
$
|
13,140
|
|
|
$
|
12,388
|
|
Cumulative effect of adoption of the revenue recognition standard (See Note 17)
|
364
|
|
|
—
|
|
||
Cumulative effect of adoption of other accounting standards (See Note 17)
|
—
|
|
|
—
|
|
||
Net income attributable to the Company
|
1,221
|
|
|
1,070
|
|
||
Dividend equivalents declared – (per share amounts: $1.165 in 2018 and $1.06 in 2017)
|
(3
|
)
|
|
(2
|
)
|
||
Dividends declared – (per share amounts: $1.165 in 2018 and $1.06 in 2017)
|
(591
|
)
|
|
(541
|
)
|
||
Balance, end of period
|
$
|
14,131
|
|
|
$
|
12,915
|
|
ACCUMULATED OTHER COMPREHENSIVE LOSS
|
|
|
|
||||
Balance, beginning of year
|
$
|
(4,043
|
)
|
|
$
|
(5,093
|
)
|
Cumulative effect of adoption of the financial instruments standard (See Note 17)
|
(14
|
)
|
|
—
|
|
||
Other comprehensive income, net of tax
|
(208
|
)
|
|
552
|
|
||
Balance, end of period
|
$
|
(4,265
|
)
|
|
$
|
(4,541
|
)
|
TREASURY SHARES
|
|
|
|
||||
Balance, beginning of year
|
$
|
(3,083
|
)
|
|
$
|
(2,506
|
)
|
Issuance of shares under stock compensation plans and employee stock purchase plans
|
140
|
|
|
201
|
|
||
Purchase of treasury shares
|
(500
|
)
|
|
(400
|
)
|
||
Balance, end of period
|
$
|
(3,443
|
)
|
|
$
|
(2,705
|
)
|
NON-CONTROLLING INTERESTS
|
|
|
|
||||
Balance, beginning of year
|
$
|
83
|
|
|
$
|
80
|
|
Net income attributable to non-controlling interests
|
11
|
|
|
15
|
|
||
Distributions and other changes
|
(13
|
)
|
|
(14
|
)
|
||
Balance, end of period
|
$
|
81
|
|
|
$
|
81
|
|
TOTAL EQUITY
|
$
|
7,797
|
|
|
$
|
7,074
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||
|
|
2018
|
|
2018
|
||||
Marsh:
|
|
|
|
|
||||
EMEA
|
|
$
|
526
|
|
|
$
|
1,169
|
|
Asia Pacific
|
|
183
|
|
|
347
|
|
||
Latin America
|
|
99
|
|
|
183
|
|
||
Total International
|
|
808
|
|
|
1,699
|
|
||
U.S./Canada
|
|
941
|
|
|
1,744
|
|
||
Total Marsh
|
|
1,749
|
|
|
3,443
|
|
||
Guy Carpenter
|
|
332
|
|
|
969
|
|
||
Subtotal
|
|
2,081
|
|
|
4,412
|
|
||
Fiduciary interest income
|
|
15
|
|
|
28
|
|
||
Total Risk and Insurance Services
|
|
$
|
2,096
|
|
|
$
|
4,440
|
|
|
|
|
|
|
||||
Mercer:
|
|
|
|
|
||||
Defined Benefit Consulting & Administration
|
|
$
|
320
|
|
|
$
|
659
|
|
Investment Management & Related Services
|
|
232
|
|
|
458
|
|
||
Total Wealth
|
|
552
|
|
|
1,117
|
|
||
Health
|
|
429
|
|
|
871
|
|
||
Career
|
|
177
|
|
|
341
|
|
||
Total Mercer
|
|
1,158
|
|
|
2,329
|
|
||
Oliver Wyman
|
|
492
|
|
|
989
|
|
||
Total Consulting
|
|
$
|
1,650
|
|
|
$
|
3,318
|
|
(In millions)
|
|
January 1, 2018
|
|
June 30, 2018
|
||||
Contract Assets
|
|
$
|
128
|
|
|
$
|
178
|
|
Contract Liabilities
|
|
$
|
583
|
|
|
$
|
647
|
|
|
|
|
|
|
Basic and Diluted EPS Calculation
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions, except per share amounts)
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Net income before non-controlling interests
|
$
|
536
|
|
|
$
|
507
|
|
|
$
|
1,232
|
|
|
$
|
1,085
|
|
Less: Net income attributable to non-controlling interests
|
5
|
|
|
6
|
|
|
11
|
|
|
15
|
|
||||
Net income attributable to the Company
|
$
|
531
|
|
|
$
|
501
|
|
|
$
|
1,221
|
|
|
$
|
1,070
|
|
Basic weighted average common shares outstanding
|
507
|
|
|
514
|
|
|
507
|
|
|
514
|
|
||||
Dilutive effect of potentially issuable common shares
|
5
|
|
|
6
|
|
|
6
|
|
|
7
|
|
||||
Diluted weighted average common shares outstanding
|
512
|
|
|
520
|
|
|
513
|
|
|
521
|
|
||||
Average stock price used to calculate common stock equivalents
|
$
|
81.64
|
|
|
$
|
75.41
|
|
|
$
|
82.24
|
|
|
$
|
73.36
|
|
(In millions)
|
|
2018
|
|
|
2017
|
|
||
Assets acquired, excluding cash
|
|
$
|
204
|
|
|
$
|
576
|
|
Liabilities assumed
|
|
(28
|
)
|
|
(74
|
)
|
||
Contingent/deferred purchase consideration
|
|
(32
|
)
|
|
(90
|
)
|
||
Net cash outflow for current year acquisitions
|
|
$
|
144
|
|
|
$
|
412
|
|
(In millions)
|
2018
|
|
|
2017
|
|
||
Interest paid
|
$
|
107
|
|
|
$
|
92
|
|
Income taxes paid, net of refunds
|
$
|
349
|
|
|
$
|
297
|
|
(In millions)
|
Unrealized Investment Gains (Losses)
|
|
Pension/Post-Retirement Plans Gains (Losses)
|
|
Foreign Currency Translation Gains (Losses)
|
|
Total Gains (Losses)
|
||||||||
Balance as of April 1, 2018
|
$
|
—
|
|
|
$
|
(2,963
|
)
|
|
$
|
(942
|
)
|
|
$
|
(3,905
|
)
|
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
129
|
|
|
(516
|
)
|
|
(387
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
||||
Net current period other comprehensive income (loss)
|
—
|
|
|
156
|
|
|
(516
|
)
|
|
(360
|
)
|
||||
Balance as of June 30, 2018
|
$
|
—
|
|
|
$
|
(2,807
|
)
|
|
$
|
(1,458
|
)
|
|
$
|
(4,265
|
)
|
(In millions)
|
Unrealized Investment Gains
|
|
Pension/Post-Retirement Plans Gains (Losses)
|
|
Foreign Currency Translation Gains (Losses)
|
|
Total Gains (Losses)
|
||||||||
Balance as of April 1, 2017
|
$
|
16
|
|
|
$
|
(3,208
|
)
|
|
$
|
(1,645
|
)
|
|
$
|
(4,837
|
)
|
Other comprehensive income (loss) before reclassifications
|
14
|
|
|
(40
|
)
|
|
289
|
|
|
263
|
|
||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
33
|
|
|
—
|
|
|
33
|
|
||||
Net current period other comprehensive income (loss)
|
14
|
|
|
(7
|
)
|
|
289
|
|
|
296
|
|
||||
Balance as of June 30, 2017
|
$
|
30
|
|
|
$
|
(3,215
|
)
|
|
$
|
(1,356
|
)
|
|
$
|
(4,541
|
)
|
(In millions)
|
Unrealized Investment Gains (Losses)
|
|
Pension/Post-Retirement Plans Gains (Losses)
|
|
Foreign Currency Translation Gains (Losses)
|
|
Total Gains (Losses)
|
||||||||
Balance as of December 31, 2017
|
$
|
14
|
|
|
$
|
(2,892
|
)
|
|
$
|
(1,165
|
)
|
|
$
|
(4,043
|
)
|
Cumulative effect of amended accounting standard
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
||||
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
29
|
|
|
(293
|
)
|
|
(264
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
56
|
|
|
—
|
|
|
56
|
|
||||
Net current period other comprehensive income (loss)
|
—
|
|
|
85
|
|
|
(293
|
)
|
|
(208
|
)
|
||||
Balance as of June 30, 2018
|
$
|
—
|
|
|
$
|
(2,807
|
)
|
|
$
|
(1,458
|
)
|
|
$
|
(4,265
|
)
|
(In millions)
|
Unrealized Investment Gains
|
|
Pension/Post-Retirement Plans Gains (Losses)
|
|
Foreign Currency Translation Gains (Losses)
|
|
Total Gains (Losses)
|
||||||||
Balance as of December 31, 2016
|
$
|
19
|
|
|
$
|
(3,232
|
)
|
|
$
|
(1,880
|
)
|
|
$
|
(5,093
|
)
|
Other comprehensive income (loss) before reclassifications
|
11
|
|
|
(46
|
)
|
|
524
|
|
|
489
|
|
||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
63
|
|
|
—
|
|
|
63
|
|
||||
Net current period other comprehensive income (loss)
|
11
|
|
|
17
|
|
|
524
|
|
|
552
|
|
||||
Balance as of June 30, 2017
|
$
|
30
|
|
|
$
|
(3,215
|
)
|
|
$
|
(1,356
|
)
|
|
$
|
(4,541
|
)
|
•
|
February – MMA acquired Highsmith Insurance Agency, a North Carolina-based independent insurance brokerage firm.
|
•
|
March – Marsh acquired Hoken Soken, Inc., a Japan-based insurance agency.
|
•
|
May – Marsh acquired Mountlodge Limited, a Scotland-based independent insurance broker and Lorant Martínez Salas y Compañía Agente de Seguros y de Fianzas, S.A. de C.V., a Mexico-based multi-line insurance broker.
|
•
|
June – MMA acquired Bleakley Insurance Services, a California-based provider of employee benefits solutions; Klein Agency, Inc., a Minnesota-based surety and property/casualty agency; and Insurance Associates, Inc., a Maryland-based independent insurance agency.
|
•
|
January – Oliver Wyman acquired Draw Ltd., a U.K.-based digital transformation agency.
|
•
|
March – Oliver Wyman acquired 8Works Limited, a U.K.-based design thinking consultancy.
|
•
|
May – Mercer acquired EverBe SAS, a France-based Workday implementer and advisory firm; and Evolve Intelligence Pty Ltd., an Australia-based talent strategy firm.
|
•
|
June – Mercer acquired India Life Capital Private Ltd., an India-based investment advisor.
|
For the Six Months Ended June 30, 2018
|
|
||
(In millions)
|
|
||
Cash
|
$
|
160
|
|
Estimated fair value of deferred/contingent consideration
|
32
|
|
|
Total Consideration
|
$
|
192
|
|
Allocation of purchase price:
|
|
||
Cash and cash equivalents
|
$
|
16
|
|
Accounts receivable, net
|
12
|
|
|
Property, plant, and equipment
|
3
|
|
|
Other intangible assets
|
73
|
|
|
Goodwill
|
116
|
|
|
Total assets acquired
|
220
|
|
|
Current liabilities
|
10
|
|
|
Other liabilities
|
18
|
|
|
Total liabilities assumed
|
28
|
|
|
Net assets acquired
|
$
|
192
|
|
|
|
Amount
|
|
Weighted Average Amortization Period
|
||
Client relationships
|
|
$
|
72
|
|
|
9 years
|
Other
|
|
1
|
|
|
4 years
|
|
|
|
$
|
73
|
|
|
|
•
|
January – MMA acquired J. Smith Lanier & Co. ("JSL"), a privately held insurance brokerage firm providing insurance, risk management, and employee benefits solutions to businesses and individuals throughout the U.S.
|
•
|
February – MMA acquired iaConsulting, a Texas-based employee benefits consulting firm.
|
•
|
March – MMA acquired Blakestad, Inc., a Minnesota-based private client and commercial lines insurance agency, and RJF Financial Services, a Minnesota-based retirement advisory firm.
|
•
|
May – MMA acquired Insurance Partners of Texas, a Texas-based employee benefits consulting firm.
|
•
|
August – Marsh acquired International Catastrophe Insurance Managers, LLC, a Colorado-based managing general agent providing property catastrophe insurance to business and homeowners, and MMA acquired Hendrick & Hendrick, Inc., a Texas-based insurance agency.
|
•
|
August – Mercer acquired Jaeson Associates, a Portugal-based talent management consulting organization.
|
•
|
December – Mercer acquired Promerit AG, a Germany-based consultancy specializing in HR digitalization and business and HR transformation and BFC Asset Management Co., Ltd., a Japan-based independently owned asset manager, focused on alternative investment strategies.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions, except per share figures)
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Revenue
|
$
|
3,748
|
|
|
$
|
3,539
|
|
|
$
|
7,770
|
|
|
$
|
7,098
|
|
Net income attributable to the Company
|
$
|
532
|
|
|
$
|
503
|
|
|
$
|
1,225
|
|
|
$
|
1,072
|
|
Basic net income per share attributable to the Company
|
$
|
1.05
|
|
|
$
|
0.98
|
|
|
$
|
2.41
|
|
|
$
|
2.08
|
|
Diluted net income per share attributable to the Company
|
$
|
1.04
|
|
|
$
|
0.97
|
|
|
$
|
2.39
|
|
|
$
|
2.06
|
|
June 30,
|
|
|
|
||||
(In millions)
|
2018
|
|
|
2017
|
|
||
Balance as of January 1,
|
$
|
9,089
|
|
|
$
|
8,369
|
|
Goodwill acquired
|
116
|
|
|
370
|
|
||
Other adjustments
(a)
|
(28
|
)
|
|
82
|
|
||
Balance at June 30,
|
$
|
9,177
|
|
|
$
|
8,821
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
(In millions)
|
Gross
Cost
|
|
|
Accumulated
Amortization
|
|
|
Net
Carrying
Amount
|
|
|
Gross
Cost
|
|
|
Accumulated
Amortization
|
|
|
Net
Carrying
Amount
|
|
||||||
Client Relationships
|
$
|
1,711
|
|
|
$
|
580
|
|
|
$
|
1,131
|
|
|
$
|
1,672
|
|
|
$
|
518
|
|
|
$
|
1,154
|
|
Other
(a)
|
237
|
|
|
134
|
|
|
103
|
|
|
234
|
|
|
114
|
|
|
120
|
|
||||||
Amortized intangibles
|
$
|
1,948
|
|
|
$
|
714
|
|
|
$
|
1,234
|
|
|
$
|
1,906
|
|
|
$
|
632
|
|
|
$
|
1,274
|
|
For the Years Ending December 31,
|
|
||
(In millions)
|
Estimated Expense
|
|
|
2018 (excludes amortization through June 30, 2018)
|
$
|
94
|
|
2019
|
173
|
|
|
2020
|
154
|
|
|
2021
|
143
|
|
|
2022
|
132
|
|
|
Subsequent years
|
538
|
|
|
|
$
|
1,234
|
|
Level 1.
|
Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market (examples include active exchange-traded equity securities and exchange-traded money market mutual funds).
|
Level 2.
|
Assets and liabilities whose values are based on the following:
|
a)
|
Quoted prices for similar assets or liabilities in active markets;
|
b)
|
Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently);
|
c)
|
Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and
|
d)
|
Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full asset or liability (for example, certain mortgage loans).
|
Level 3.
|
Assets and liabilities whose values are based on prices, or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
|
|
Identical Assets
(Level 1)
|
|
Observable Inputs
(Level 2)
|
|
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||||||||||||||||||
(In millions)
|
06/30/18
|
|
|
12/31/17
|
|
|
06/30/18
|
|
|
12/31/17
|
|
|
06/30/18
|
|
|
12/31/17
|
|
|
06/30/18
|
|
|
12/31/17
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financial instruments owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Exchange traded equity securities
(a)
|
$
|
99
|
|
|
$
|
81
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
99
|
|
|
$
|
81
|
|
Mutual funds
(a)
|
144
|
|
|
158
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144
|
|
|
158
|
|
||||||||
Money market funds
(b)
|
33
|
|
|
143
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
143
|
|
||||||||
Total assets measured at fair value
|
$
|
276
|
|
|
$
|
382
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
276
|
|
|
$
|
382
|
|
Fiduciary Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Money market funds
|
$
|
129
|
|
|
$
|
111
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
129
|
|
|
$
|
111
|
|
Total fiduciary assets measured
at fair value
|
$
|
129
|
|
|
$
|
111
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
129
|
|
|
$
|
111
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Contingent purchase
consideration liability
(c)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
185
|
|
|
$
|
189
|
|
|
$
|
185
|
|
|
$
|
189
|
|
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
185
|
|
|
$
|
189
|
|
|
$
|
185
|
|
|
$
|
189
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||
(In millions)
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||
Balance at beginning of period,
|
$
|
161
|
|
$
|
247
|
|
|
$
|
189
|
|
$
|
241
|
|
Additions
|
20
|
|
—
|
|
|
26
|
|
34
|
|
||||
Payments
|
(1
|
)
|
(53
|
)
|
|
(41
|
)
|
(65
|
)
|
||||
Revaluation Impact
|
6
|
|
8
|
|
|
11
|
|
(8
|
)
|
||||
Other
(a)
|
(1
|
)
|
1
|
|
|
—
|
|
1
|
|
||||
Balance at June 30,
|
$
|
185
|
|
$
|
203
|
|
|
$
|
185
|
|
$
|
203
|
|
Combined U.S. and significant non-U.S. plans
|
Pension
Benefits
|
|
Post-retirement
Benefits
|
||||||||||||
For the Three Months Ended June 30,
|
|
||||||||||||||
(In millions)
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Service cost
|
$
|
7
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
117
|
|
|
124
|
|
|
1
|
|
|
1
|
|
||||
Expected return on plan assets
|
(218
|
)
|
|
(230
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service cost
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
||||
Recognized actuarial loss
|
37
|
|
|
43
|
|
|
—
|
|
|
—
|
|
||||
Net periodic benefit (credit) cost
|
$
|
(58
|
)
|
|
$
|
(45
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
||||||||
Combined U.S. and significant non-U.S. plans
|
Pension
Benefits
|
|
Post-retirement
Benefits
|
||||||||||||
For the Six Months Ended June 30,
|
|
||||||||||||||
(In millions)
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Service cost
|
$
|
17
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
235
|
|
|
246
|
|
|
2
|
|
|
2
|
|
||||
Expected return on plan assets
|
(439
|
)
|
|
(454
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service (credit) cost
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
1
|
|
||||
Recognized actuarial loss
|
74
|
|
|
83
|
|
|
—
|
|
|
—
|
|
||||
Net periodic benefit (credit) cost
|
$
|
(114
|
)
|
|
$
|
(89
|
)
|
|
$
|
—
|
|
|
$
|
3
|
|
Curtailment gain
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||
Settlement loss
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Total (credit) cost
|
$
|
(114
|
)
|
|
$
|
(89
|
)
|
|
$
|
—
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
U.S. Plans only
|
Pension
Benefits |
|
Post-retirement
Benefits |
||||||||||||
For the Three Months Ended June 30,
|
|
||||||||||||||
(In millions)
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
59
|
|
|
66
|
|
|
1
|
|
|
1
|
|
||||
Expected return on plan assets
|
(90
|
)
|
|
(90
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service (credit) cost
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
||||
Recognized actuarial loss (gain)
|
14
|
|
|
10
|
|
|
—
|
|
|
(1
|
)
|
||||
Net periodic benefit (credit) cost
|
$
|
(17
|
)
|
|
$
|
(14
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
U.S. Plans only
|
Pension
Benefits |
|
Post-retirement
Benefits |
||||||||||||
For the Six Months Ended June 30,
|
|
||||||||||||||
(In millions)
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
118
|
|
|
132
|
|
|
1
|
|
|
1
|
|
||||
Expected return on plan assets
|
(179
|
)
|
|
(179
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service (credit) cost
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
2
|
|
||||
Recognized actuarial loss (gain)
|
27
|
|
|
19
|
|
|
—
|
|
|
(1
|
)
|
||||
Net periodic benefit (credit) cost
|
$
|
(34
|
)
|
|
$
|
(28
|
)
|
|
$
|
—
|
|
|
$
|
2
|
|
Significant non-U.S. plans only
|
Pension
Benefits |
|
Post-retirement
Benefits |
||||||||||||
For the Three Months Ended June 30,
|
|
||||||||||||||
(In millions)
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Service cost
|
$
|
7
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
58
|
|
|
58
|
|
|
—
|
|
|
—
|
|
||||
Expected return on plan assets
|
(128
|
)
|
|
(140
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service cost
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Recognized actuarial loss
|
23
|
|
|
33
|
|
|
—
|
|
|
1
|
|
||||
Net periodic benefit (credit) cost
|
$
|
(41
|
)
|
|
$
|
(31
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Significant non-U.S. plans only
|
Pension
Benefits |
|
Post-retirement
Benefits |
||||||||||||
For the Six Months Ended June 30,
|
|
||||||||||||||
(In millions)
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Service cost
|
$
|
17
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
117
|
|
|
114
|
|
|
1
|
|
|
1
|
|
||||
Expected return on plan assets
|
(260
|
)
|
|
(275
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service credit
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||
Recognized actuarial loss
|
47
|
|
|
64
|
|
|
—
|
|
|
1
|
|
||||
Net periodic benefit (credit) cost
|
$
|
(80
|
)
|
|
$
|
(61
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
Curtailment gain
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||
Settlement loss
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Total (credit) cost
|
$
|
(80
|
)
|
|
$
|
(61
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
Combined U.S. and significant non-U.S. plans
|
Pension
Benefits |
|
Post-retirement
Benefits |
||||||||
|
|||||||||||
June 30,
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Weighted average assumptions:
|
|
|
|
|
|
|
|
||||
Expected return on plan assets
|
5.83
|
%
|
|
6.64
|
%
|
|
—
|
|
|
—
|
|
Discount Rate
|
3.07
|
%
|
|
3.40
|
%
|
|
3.21
|
%
|
|
3.64
|
%
|
Rate of compensation increase
|
1.73
|
%
|
|
1.77
|
%
|
|
—
|
|
|
—
|
|
(In millions)
|
June 30,
2018 |
|
|
December 31,
2017 |
|
||
Short-term:
|
|
|
|
||||
Commercial paper
|
$
|
175
|
|
|
$
|
—
|
|
Current portion of long-term debt
|
264
|
|
|
262
|
|
||
|
439
|
|
|
262
|
|
||
Long-term:
|
|
|
|
||||
Senior notes – 2.55% due 2018
|
250
|
|
|
250
|
|
||
Senior notes – 2.35% due 2019
|
299
|
|
|
299
|
|
||
Senior notes – 2.35% due 2020
|
499
|
|
|
498
|
|
||
Senior notes – 4.80% due 2021
|
498
|
|
|
498
|
|
||
Senior notes – 2.75% due 2022
|
497
|
|
|
496
|
|
||
Senior notes – 3.30% due 2023
|
348
|
|
|
348
|
|
||
Senior notes – 4.05% due 2023
|
248
|
|
|
248
|
|
||
Senior notes – 3.50% due 2024
|
597
|
|
|
596
|
|
||
Senior notes – 3.50% due 2025
|
496
|
|
|
496
|
|
||
Senior notes – 3.75% due 2026
|
596
|
|
|
596
|
|
||
Senior notes – 5.875% due 2033
|
297
|
|
|
297
|
|
||
Senior notes – 4.35% due 2047
|
492
|
|
|
492
|
|
||
Senior notes – 4.20% due 2048
|
592
|
|
|
—
|
|
||
Mortgage – 5.70% due 2035
|
364
|
|
|
370
|
|
||
Other
|
4
|
|
|
3
|
|
||
|
6,077
|
|
|
5,487
|
|
||
Less current portion
|
264
|
|
|
262
|
|
||
|
$
|
5,813
|
|
|
$
|
5,225
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
(In millions)
|
Carrying
Amount
|
|
|
Fair
Value
|
|
|
Carrying
Amount
|
|
|
Fair
Value
|
|
||||
Short-term debt
|
$
|
439
|
|
|
$
|
440
|
|
|
$
|
262
|
|
|
$
|
264
|
|
Long-term debt
|
$
|
5,813
|
|
|
$
|
5,826
|
|
|
$
|
5,225
|
|
|
$
|
5,444
|
|
(In millions)
|
Liability at 1/1/17
|
|
Amounts
Accrued
|
|
Cash
Paid
|
|
Other
|
|
Liability at 12/31/17
|
|
Amounts
Accrued
|
|
Cash
Paid
|
|
Other
|
|
Liability at 6/30/18
|
||||||||||||||||||
Severance
|
$
|
32
|
|
|
$
|
31
|
|
|
$
|
(49
|
)
|
|
$
|
1
|
|
|
$
|
15
|
|
|
$
|
51
|
|
|
$
|
(22
|
)
|
|
$
|
(1
|
)
|
|
$
|
43
|
|
Future rent under non-cancelable leases and other costs
|
61
|
|
|
9
|
|
|
(22
|
)
|
|
2
|
|
|
50
|
|
|
13
|
|
|
(19
|
)
|
|
—
|
|
|
44
|
|
|||||||||
Total
|
$
|
93
|
|
|
$
|
40
|
|
|
$
|
(71
|
)
|
|
$
|
3
|
|
|
$
|
65
|
|
|
$
|
64
|
|
|
$
|
(41
|
)
|
|
$
|
(1
|
)
|
|
$
|
87
|
|
▪
|
Risk and Insurance Services
, comprising insurance services (Marsh) and reinsurance services (Guy Carpenter); and
|
▪
|
Consulting
, comprising Mercer and Oliver Wyman Group.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions)
|
Revenue
|
|
Operating
Income
(Loss)
|
|
Revenue
|
|
Operating
Income
(Loss)
|
||||||||
2018–
|
|
|
|
|
|
|
|
||||||||
Risk and Insurance Services
|
$
|
2,096
|
|
(a)
|
$
|
472
|
|
|
$
|
4,440
|
|
(c)
|
$
|
1,188
|
|
Consulting
|
1,650
|
|
(b)
|
267
|
|
|
3,318
|
|
(d)
|
514
|
|
||||
Total Operating Segments
|
3,746
|
|
|
739
|
|
|
7,758
|
|
|
1,702
|
|
||||
Corporate / Eliminations
|
(12
|
)
|
|
(48
|
)
|
|
(24
|
)
|
|
(103
|
)
|
||||
Total Consolidated
|
$
|
3,734
|
|
|
$
|
691
|
|
|
$
|
7,734
|
|
|
$
|
1,599
|
|
2017–
|
|
|
|
|
|
|
|
||||||||
Risk and Insurance Services
|
$
|
1,916
|
|
(a)
|
$
|
482
|
|
|
$
|
3,905
|
|
(c)
|
$
|
1,050
|
|
Consulting
|
1,592
|
|
(b)
|
265
|
|
|
3,118
|
|
(d)
|
490
|
|
||||
Total Operating Segments
|
3,508
|
|
|
747
|
|
|
7,023
|
|
|
1,540
|
|
||||
Corporate / Eliminations
|
(13
|
)
|
|
(46
|
)
|
|
(25
|
)
|
|
(90
|
)
|
||||
Total Consolidated
|
$
|
3,495
|
|
|
$
|
701
|
|
|
$
|
6,998
|
|
|
$
|
1,450
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In millions)
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Risk and Insurance Services
|
|
|
|
|
|
|
|
||||||||
Marsh
|
$
|
1,760
|
|
|
$
|
1,621
|
|
|
$
|
3,463
|
|
|
$
|
3,223
|
|
Guy Carpenter
|
336
|
|
|
295
|
|
|
977
|
|
|
682
|
|
||||
Total Risk and Insurance Services
|
2,096
|
|
|
1,916
|
|
|
4,440
|
|
|
3,905
|
|
||||
Consulting
|
|
|
|
|
|
|
|
||||||||
Mercer
|
1,158
|
|
|
1,109
|
|
|
2,329
|
|
|
2,186
|
|
||||
Oliver Wyman Group
|
492
|
|
|
483
|
|
|
989
|
|
|
932
|
|
||||
Total Consulting
|
1,650
|
|
|
1,592
|
|
|
3,318
|
|
|
3,118
|
|
||||
Total Operating Segments
|
3,746
|
|
|
3,508
|
|
|
7,758
|
|
|
7,023
|
|
||||
Corporate
/
Eliminations
|
(12
|
)
|
|
(13
|
)
|
|
(24
|
)
|
|
(25
|
)
|
||||
Total
|
$
|
3,734
|
|
|
$
|
3,495
|
|
|
$
|
7,734
|
|
|
$
|
6,998
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
|
As Reported |
|
Revenue Standard Impact
|
|
Legacy GAAP
|
|
As Reported
|
|
Revenue Standard Impact
|
|
Legacy GAAP
|
||||||||||||
Revenue
|
|
$
|
3,734
|
|
|
$
|
(24
|
)
|
|
$
|
3,710
|
|
|
$
|
7,734
|
|
|
$
|
(185
|
)
|
|
$
|
7,549
|
|
Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and Benefits
|
|
2,135
|
|
|
(10
|
)
|
|
2,125
|
|
|
4,359
|
|
|
(70
|
)
|
|
4,289
|
|
||||||
Other Operating Expenses
|
|
908
|
|
|
—
|
|
|
908
|
|
|
1,776
|
|
|
—
|
|
|
1,776
|
|
||||||
Operating Expenses
|
|
3,043
|
|
|
(10
|
)
|
|
3,033
|
|
|
6,135
|
|
|
(70
|
)
|
|
6,065
|
|
||||||
Operating Income
|
|
691
|
|
|
(14
|
)
|
|
677
|
|
|
1,599
|
|
|
(115
|
)
|
|
1,484
|
|
||||||
Other Net Benefit Credits
|
|
65
|
|
|
—
|
|
|
65
|
|
|
131
|
|
|
—
|
|
|
131
|
|
||||||
Interest Income
|
|
3
|
|
|
—
|
|
|
3
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||
Interest Expense
|
|
(68
|
)
|
|
—
|
|
|
(68
|
)
|
|
(129
|
)
|
|
—
|
|
|
(129
|
)
|
||||||
Investment Income
|
|
28
|
|
|
—
|
|
|
28
|
|
|
28
|
|
|
—
|
|
|
28
|
|
||||||
Income Before Income Taxes
|
|
719
|
|
|
(14
|
)
|
|
705
|
|
|
1,635
|
|
|
(115
|
)
|
|
1,520
|
|
||||||
Income Tax Expense
|
|
183
|
|
|
(4
|
)
|
|
179
|
|
|
403
|
|
|
(30
|
)
|
|
373
|
|
||||||
Net Income Before Non-Controlling Interests
|
|
536
|
|
|
(10
|
)
|
|
526
|
|
|
1,232
|
|
|
(85
|
)
|
|
1,147
|
|
||||||
Less: Net Income Attributable to Non-Controlling Interests
|
|
5
|
|
|
—
|
|
|
5
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||
Net Income Attributable to the Company
|
|
$
|
531
|
|
|
$
|
(10
|
)
|
|
$
|
521
|
|
|
$
|
1,221
|
|
|
$
|
(85
|
)
|
|
$
|
1,136
|
|
|
|
June 30, 2018
|
||||||||||
|
|
As Reported
|
|
Revenue Standard Impact
|
|
Legacy GAAP
|
||||||
ASSETS
|
|
|
|
|
|
|
||||||
Current assets:
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
1,036
|
|
|
$
|
—
|
|
|
$
|
1,036
|
|
Net receivables
|
|
4,601
|
|
|
(254
|
)
|
|
4,347
|
|
|||
Other current assets
|
|
538
|
|
|
(298
|
)
|
|
240
|
|
|||
Total current assets
|
|
6,175
|
|
|
(552
|
)
|
|
5,623
|
|
|||
Goodwill and intangible assets
|
|
10,411
|
|
|
—
|
|
|
10,411
|
|
|||
Fixed assets, net
|
|
698
|
|
|
—
|
|
|
698
|
|
|||
Pension related assets
|
|
1,808
|
|
|
—
|
|
|
1,808
|
|
|||
Deferred tax assets
|
|
532
|
|
|
133
|
|
|
665
|
|
|||
Other assets
|
|
1,535
|
|
|
(230
|
)
|
|
1,305
|
|
|||
TOTAL ASSETS
|
|
$
|
21,159
|
|
|
$
|
(649
|
)
|
|
$
|
20,510
|
|
|
|
|
|
|
|
|
||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
||||||
Current liabilities:
|
|
|
|
|
|
|
||||||
Short-term debt
|
|
$
|
439
|
|
|
$
|
—
|
|
|
$
|
439
|
|
Accounts payable and accrued liabilities
|
|
2,246
|
|
|
(177
|
)
|
|
2,069
|
|
|||
Accrued compensation and employee benefits
|
|
1,103
|
|
|
—
|
|
|
1,103
|
|
|||
Accrued income taxes
|
|
216
|
|
|
—
|
|
|
216
|
|
|||
Dividends payable
|
|
212
|
|
|
—
|
|
|
212
|
|
|||
Total current liabilities
|
|
4,216
|
|
|
(177
|
)
|
|
4,039
|
|
|||
Fiduciary liabilities
|
|
5,118
|
|
|
—
|
|
|
5,118
|
|
|||
Less - cash and investments held in a fiduciary capacity
|
|
(5,118
|
)
|
|
—
|
|
|
(5,118
|
)
|
|||
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Long-term debt
|
|
5,813
|
|
|
—
|
|
|
5,813
|
|
|||
Pension, post-retirement and post-employment benefits
|
|
1,768
|
|
|
—
|
|
|
1,768
|
|
|||
Liabilities for errors and omissions
|
|
303
|
|
|
—
|
|
|
303
|
|
|||
Other liabilities
|
|
1,262
|
|
|
(23
|
)
|
|
1,239
|
|
|||
Total equity
|
|
7,797
|
|
|
(449
|
)
|
|
7,348
|
|
|||
TOTAL LIABILITIES AND EQUITY
|
|
$
|
21,159
|
|
|
$
|
(649
|
)
|
|
$
|
20,510
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||
|
|
As Reported
|
|
Revenue Standard Impact
|
|
Legacy GAAP
|
||||||
Operating cash flows:
|
|
|
|
|
|
|
||||||
Net income before non-controlling interests
|
|
$
|
1,232
|
|
|
$
|
(85
|
)
|
|
$
|
1,147
|
|
Adjustments to reconcile net income to cash provided by operations:
|
|
|
|
|
|
|
||||||
Depreciation and amortization of fixed assets and capitalized software
|
|
159
|
|
|
—
|
|
|
159
|
|
|||
Amortization of intangible assets
|
|
88
|
|
|
—
|
|
|
88
|
|
|||
Adjustments and payments related to contingent consideration liability
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
Provision for deferred income taxes
|
|
34
|
|
|
—
|
|
|
34
|
|
|||
Gain on investments
|
|
(28
|
)
|
|
—
|
|
|
(28
|
)
|
|||
Gain on disposition of assets
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Share-based compensation expense
|
|
99
|
|
|
—
|
|
|
99
|
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
|
||||||
Net receivables
|
|
(388
|
)
|
|
186
|
|
|
(202
|
)
|
|||
Other current assets
|
|
4
|
|
|
(20
|
)
|
|
(16
|
)
|
|||
Other assets
|
|
(10
|
)
|
|
(26
|
)
|
|
(36
|
)
|
|||
Accounts payable and accrued liabilities
|
|
30
|
|
|
(55
|
)
|
|
(25
|
)
|
|||
Accrued compensation and employee benefits
|
|
(614
|
)
|
|
—
|
|
|
(614
|
)
|
|||
Accrued income taxes
|
|
18
|
|
|
—
|
|
|
18
|
|
|||
Contributions to pension excess of expense/credit
|
|
(178
|
)
|
|
—
|
|
|
(178
|
)
|
|||
Other liabilities
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||
Effect of exchange rate changes
|
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
|||
Net cash provided by operations
|
|
$
|
413
|
|
|
$
|
—
|
|
|
$
|
413
|
|
|
|
|
Adjustments
|
|
|
||||||||||||||
|
Balance at December 31, 2017
|
|
Revenue Recognition
|
|
Financial Instruments
|
|
Intra-Entity Transfer
|
|
Balance at January 1, 2018
|
||||||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Receivables
|
$
|
4,133
|
|
|
$
|
68
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,201
|
|
Other Current Assets
|
224
|
|
|
318
|
|
|
—
|
|
|
—
|
|
|
542
|
|
|||||
Other Assets
|
1,430
|
|
|
226
|
|
|
—
|
|
|
—
|
|
|
1,656
|
|
|||||
Deferred Tax Assets
|
669
|
|
|
(103
|
)
|
|
—
|
|
|
(14
|
)
|
|
552
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts Payable and Accrued Liabilities
|
2,083
|
|
|
122
|
|
|
—
|
|
|
—
|
|
|
2,205
|
|
|||||
Other Liabilities
|
1,311
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
1,334
|
|
|||||
Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Accumulated Comprehensive Income
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
|||||
Retained Earnings
|
$
|
13,140
|
|
|
$
|
364
|
|
|
$
|
14
|
|
|
$
|
(14
|
)
|
|
$
|
13,504
|
|
•
|
Risk and Insurance Services
includes risk management activities (risk advice, risk transfer and risk control and mitigation solutions) as well as insurance and reinsurance broking and services. The Company conducts business in this segment through Marsh and Guy Carpenter.
|
•
|
Consulting
includes wealth, health and career consulting services and products, and specialized management, economic and brand consulting services. The Company conducts business in this segment through Mercer and Oliver Wyman Group.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|||||||||||
(In millions, except per share figures)
|
2018
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Revenue
|
$
|
3,734
|
|
$
|
3,495
|
|
|
$
|
7,734
|
|
|
$
|
6,998
|
|
Expense:
|
|
|
|
|
|
|
||||||||
Compensation and Benefits
|
2,135
|
|
1,998
|
|
|
4,359
|
|
|
4,003
|
|
||||
Other Operating Expenses
|
908
|
|
796
|
|
|
1,776
|
|
|
1,545
|
|
||||
Operating Expenses
|
3,043
|
|
2,794
|
|
|
6,135
|
|
|
5,548
|
|
||||
Operating Income
|
691
|
|
701
|
|
|
1,599
|
|
|
1,450
|
|
||||
Income from Continuing Operations
|
536
|
|
507
|
|
|
1,232
|
|
|
1,085
|
|
||||
Net Income Attributable to the Company
|
$
|
531
|
|
$
|
501
|
|
|
$
|
1,221
|
|
|
$
|
1,070
|
|
Net Income Per Share Attributable to the Company:
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.05
|
|
$
|
0.98
|
|
|
$
|
2.41
|
|
|
$
|
2.08
|
|
Diluted
|
$
|
1.04
|
|
$
|
0.96
|
|
|
$
|
2.38
|
|
|
$
|
2.05
|
|
Average Number of Shares Outstanding:
|
|
|
|
|
|
|
||||||||
Basic
|
507
|
|
514
|
|
|
507
|
|
|
514
|
|
||||
Diluted
|
512
|
|
520
|
|
|
513
|
|
|
521
|
|
||||
Shares outstanding at June 30,
|
505
|
|
513
|
|
|
505
|
|
|
513
|
|
|
Three Months Ended
June 30, |
|
%
Change GAAP Revenue |
|
Components of Revenue Change*
|
|||||||||||||||||
Currency
Impact |
|
Acquisitions/
Dispositions/ Other Impact |
|
Revenue Standard Impact
|
|
Underlying
Revenue |
||||||||||||||||
(In millions)
|
2018
|
|
|
2017
|
|
|
||||||||||||||||
Risk and Insurance Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Marsh
|
$
|
1,749
|
|
|
$
|
1,614
|
|
|
8
|
%
|
|
2
|
%
|
|
1
|
%
|
|
—
|
|
|
5
|
%
|
Guy Carpenter
|
332
|
|
|
293
|
|
|
13
|
%
|
|
1
|
%
|
|
—
|
|
|
7
|
%
|
|
5
|
%
|
||
Subtotal
|
2,081
|
|
|
1,907
|
|
|
9
|
%
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
|
5
|
%
|
||
Fiduciary Interest Income
|
15
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Risk and Insurance Services
|
2,096
|
|
|
1,916
|
|
|
9
|
%
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
|
5
|
%
|
||
Consulting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Mercer
|
1,158
|
|
|
1,109
|
|
|
5
|
%
|
|
2
|
%
|
|
1
|
%
|
|
—
|
|
|
2
|
%
|
||
Oliver Wyman Group
|
492
|
|
|
483
|
|
|
2
|
%
|
|
3
|
%
|
|
—
|
|
|
—
|
|
|
(2
|
)%
|
||
Total Consulting
|
1,650
|
|
|
1,592
|
|
|
4
|
%
|
|
2
|
%
|
|
1
|
%
|
|
—
|
|
|
1
|
%
|
||
Corporate / Eliminations
|
(12
|
)
|
|
(13
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Revenue
|
$
|
3,734
|
|
|
$
|
3,495
|
|
|
7
|
%
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
|
3
|
%
|
|
Three Months Ended
June 30, |
|
%
Change
GAAP
Revenue
|
|
Components of Revenue Change*
|
|||||||||||||||||
Currency
Impact
|
|
Acquisitions/
Dispositions/ Other Impact |
|
Revenue Standard Impact
|
|
Underlying
Revenue
|
||||||||||||||||
(In millions)
|
2018
|
|
|
2017
|
|
|
||||||||||||||||
Marsh:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
EMEA
|
$
|
526
|
|
|
$
|
497
|
|
|
6
|
%
|
|
5
|
%
|
|
—
|
|
|
—
|
|
|
1
|
%
|
Asia Pacific
|
183
|
|
|
168
|
|
|
9
|
%
|
|
2
|
%
|
|
—
|
|
|
—
|
|
|
6
|
%
|
||
Latin America
|
99
|
|
|
99
|
|
|
—
|
|
|
(5
|
)%
|
|
3
|
%
|
|
—
|
|
|
3
|
%
|
||
Total International
|
808
|
|
|
764
|
|
|
6
|
%
|
|
3
|
%
|
|
1
|
%
|
|
—
|
|
|
2
|
%
|
||
U.S. / Canada
|
941
|
|
|
850
|
|
|
11
|
%
|
|
—
|
|
|
2
|
%
|
|
1
|
%
|
|
8
|
%
|
||
Total Marsh
|
$
|
1,749
|
|
|
$
|
1,614
|
|
|
8
|
%
|
|
2
|
%
|
|
1
|
%
|
|
—
|
|
|
5
|
%
|
Mercer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Defined Benefit Consulting & Administration
|
$
|
320
|
|
|
$
|
340
|
|
|
(6
|
)%
|
|
3
|
%
|
|
(3
|
)%
|
|
—
|
|
|
(6
|
)%
|
Investment Management & Related Services
|
232
|
|
|
192
|
|
|
20
|
%
|
|
2
|
%
|
|
6
|
%
|
|
—
|
|
|
12
|
%
|
||
Total Wealth
|
552
|
|
|
532
|
|
|
4
|
%
|
|
3
|
%
|
|
—
|
|
|
—
|
|
|
1
|
%
|
||
Health
|
429
|
|
|
423
|
|
|
2
|
%
|
|
1
|
%
|
|
—
|
|
|
(1
|
)%
|
|
1
|
%
|
||
Career
|
177
|
|
|
154
|
|
|
15
|
%
|
|
2
|
%
|
|
6
|
%
|
|
—
|
|
|
7
|
%
|
||
Total Mercer
|
$
|
1,158
|
|
|
$
|
1,109
|
|
|
5
|
%
|
|
2
|
%
|
|
1
|
%
|
|
—
|
|
|
2
|
%
|
Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of certain items that affect comparability such as: acquisitions, dispositions, transfers among businesses, changes in estimate methodology and the impact of the new revenue standard.
|
|
*
|
Components of revenue change may not add due to rounding.
|
|
Six Months Ended
June 30, |
|
%
Change
GAAP
Revenue
|
|
Components of Revenue Change*
|
|||||||||||||||||
Currency
Impact
|
|
Acquisitions/
Dispositions/
Other Impact
|
|
Revenue Standard Impact
|
|
Underlying
Revenue
|
||||||||||||||||
(In millions)
|
2018
|
|
|
2017
|
|
|
||||||||||||||||
Risk and Insurance Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Marsh
|
$
|
3,443
|
|
|
$
|
3,210
|
|
|
7
|
%
|
|
3
|
%
|
|
2
|
%
|
|
(1
|
)%
|
|
3
|
%
|
Guy Carpenter
|
969
|
|
|
678
|
|
|
43
|
%
|
|
2
|
%
|
|
—
|
|
|
35
|
%
|
|
6
|
%
|
||
Subtotal
|
4,412
|
|
|
3,888
|
|
|
13
|
%
|
|
3
|
%
|
|
2
|
%
|
|
5
|
%
|
|
4
|
%
|
||
Fiduciary Interest Income
|
28
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Risk and Insurance Services
|
4,440
|
|
|
3,905
|
|
|
14
|
%
|
|
3
|
%
|
|
2
|
%
|
|
5
|
%
|
|
4
|
%
|
||
Consulting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Mercer
|
2,329
|
|
|
2,186
|
|
|
7
|
%
|
|
3
|
%
|
|
1
|
%
|
|
—
|
|
|
3
|
%
|
||
Oliver Wyman Group
|
989
|
|
|
932
|
|
|
6
|
%
|
|
4
|
%
|
|
—
|
|
|
—
|
|
|
2
|
%
|
||
Total Consulting
|
3,318
|
|
|
3,118
|
|
|
6
|
%
|
|
3
|
%
|
|
1
|
%
|
|
—
|
|
|
3
|
%
|
||
Corporate / Eliminations
|
(24
|
)
|
|
(25
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Revenue
|
$
|
7,734
|
|
|
$
|
6,998
|
|
|
11
|
%
|
|
3
|
%
|
|
1
|
%
|
|
3
|
%
|
|
4
|
%
|
|
Six Months Ended
June 30, |
|
%
Change
GAAP
Revenue
|
|
Components of Revenue Change*
|
|||||||||||||||||
Currency
Impact
|
|
Acquisitions/
Dispositions/
Other Impact
|
|
Revenue Standard Impact
|
|
Underlying
Revenue
|
||||||||||||||||
(In millions)
|
2018
|
|
|
2017
|
|
|
||||||||||||||||
Marsh:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
EMEA
|
$
|
1,169
|
|
|
$
|
1,086
|
|
|
8
|
%
|
|
8
|
%
|
|
—
|
|
|
—
|
|
|
(1
|
)%
|
Asia Pacific
|
347
|
|
|
320
|
|
|
8
|
%
|
|
3
|
%
|
|
—
|
|
|
—
|
|
|
5
|
%
|
||
Latin America
|
183
|
|
|
179
|
|
|
2
|
%
|
|
(4
|
)%
|
|
2
|
%
|
|
—
|
|
|
4
|
%
|
||
Total International
|
1,699
|
|
|
1,585
|
|
|
7
|
%
|
|
6
|
%
|
|
—
|
|
|
—
|
|
|
1
|
%
|
||
U.S. / Canada
|
1,744
|
|
|
1,625
|
|
|
7
|
%
|
|
—
|
|
|
4
|
%
|
|
(2
|
)%
|
|
6
|
%
|
||
Total Marsh
|
$
|
3,443
|
|
|
$
|
3,210
|
|
|
7
|
%
|
|
3
|
%
|
|
2
|
%
|
|
(1
|
)%
|
|
3
|
%
|
Mercer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Defined Benefit Consulting & Administration
|
$
|
659
|
|
|
$
|
674
|
|
|
(2
|
)%
|
|
5
|
%
|
|
(2
|
)%
|
|
—
|
|
|
(5
|
)%
|
Investment Management & Related Services
|
458
|
|
|
378
|
|
|
21
|
%
|
|
4
|
%
|
|
4
|
%
|
|
—
|
|
|
14
|
%
|
||
Total Wealth
|
1,117
|
|
|
1,052
|
|
|
6
|
%
|
|
4
|
%
|
|
—
|
|
|
—
|
|
|
2
|
%
|
||
Health
|
871
|
|
|
838
|
|
|
4
|
%
|
|
2
|
%
|
|
(1
|
)%
|
|
(1
|
)%
|
|
4
|
%
|
||
Career
|
341
|
|
|
296
|
|
|
15
|
%
|
|
3
|
%
|
|
6
|
%
|
|
—
|
|
|
6
|
%
|
||
Total Mercer
|
$
|
2,329
|
|
|
$
|
2,186
|
|
|
7
|
%
|
|
3
|
%
|
|
1
|
%
|
|
—
|
|
|
3
|
%
|
Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of certain items that affect comparability such as: acquisitions, dispositions, transfers among businesses, changes in estimate methodology and the impact of the new revenue standard.
|
|
*
|
Components of revenue change may not add due to rounding.
|
For the Three and Six Months Ended June 30,
|
Three Months
|
|
Six Months
|
||||||||||
(In millions)
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||
Revenue
|
$
|
2,096
|
|
$
|
1,916
|
|
|
$
|
4,440
|
|
$
|
3,905
|
|
Compensation and Benefits
|
1,145
|
|
1,014
|
|
|
2,313
|
|
2,039
|
|
||||
Other Operating Expenses
|
479
|
|
420
|
|
|
939
|
|
816
|
|
||||
Expense
|
1,624
|
|
1,434
|
|
|
3,252
|
|
2,855
|
|
||||
Operating Income
|
$
|
472
|
|
$
|
482
|
|
|
$
|
1,188
|
|
$
|
1,050
|
|
Operating Income Margin
|
22.5
|
%
|
25.2
|
%
|
|
26.8
|
%
|
26.9
|
%
|
For the Three and Six Months Ended June 30,
|
Three Months
|
|
Six Months
|
||||||||||
(In millions)
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||
Revenue
|
$
|
1,650
|
|
$
|
1,592
|
|
|
$
|
3,318
|
|
$
|
3,118
|
|
Compensation and Benefits
|
902
|
|
901
|
|
|
1,858
|
|
1,792
|
|
||||
Other Operating Expenses
|
481
|
|
426
|
|
|
946
|
|
836
|
|
||||
Expense
|
1,383
|
|
1,327
|
|
|
2,804
|
|
2,628
|
|
||||
Operating Income
|
$
|
267
|
|
$
|
265
|
|
|
$
|
514
|
|
$
|
490
|
|
Operating Income Margin
|
16.2
|
%
|
16.6
|
%
|
|
15.5
|
%
|
15.7
|
%
|
|
|
|
|
|
|
(
In millions of dollars
)
|
Payment due by Period
|
||||||||||||||||||
Contractual Obligations
|
Total
|
|
|
Within
1 Year
|
|
|
1-3 Years
|
|
|
4-5 Years
|
|
|
After
5 Years
|
|
|||||
Commercial paper
|
$
|
175
|
|
|
$
|
175
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term debt
|
264
|
|
|
264
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Long-term debt
|
5,854
|
|
|
—
|
|
|
831
|
|
|
1,381
|
|
|
3,642
|
|
|||||
Interest on long-term debt
|
2,588
|
|
|
227
|
|
|
424
|
|
|
356
|
|
|
1,581
|
|
|||||
Net operating leases
|
1,900
|
|
|
298
|
|
|
512
|
|
|
421
|
|
|
669
|
|
|||||
Service agreements
|
274
|
|
|
167
|
|
|
85
|
|
|
11
|
|
|
11
|
|
|||||
Other long-term obligations
|
278
|
|
|
123
|
|
|
143
|
|
|
12
|
|
|
—
|
|
|||||
Total
|
$
|
11,333
|
|
|
$
|
1,254
|
|
|
$
|
1,995
|
|
|
$
|
2,181
|
|
|
$
|
5,903
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
(In millions)
|
June 30, 2018
|
||
Cash and cash equivalents invested in money market funds, certificates of deposit and time deposits
|
$
|
1,036
|
|
Fiduciary cash and investments
|
$
|
5,118
|
|
Item 4.
|
Controls & Procedures.
|
Period
|
(a)
Total
Number of
Shares (or
Units)
Purchased
|
|
|
(b)
Average
Price
Paid per
Share
(or Unit)
|
|
|
(c)
Total Number of
Shares (or
Units)
Purchased as
Part of Publicly
Announced
Plans or
Programs
|
|
|
(d)
Maximum
Number (or
Approximate
Dollar Value) of
Shares (or
Units) that May
Yet Be
Purchased
Under the Plans
or Programs
|
|
||
April 1-30, 2018
|
916,161
|
|
|
$
|
82.0518
|
|
|
916,161
|
|
|
$
|
1,215,580,211
|
|
May 1-31, 2018
|
1,395,011
|
|
|
$
|
80.9624
|
|
|
1,395,011
|
|
|
$
|
1,102,636,719
|
|
June 1-30, 2018
|
758,098
|
|
|
$
|
81.6303
|
|
|
758,098
|
|
|
$
|
1,040,752,944
|
|
Total
|
3,069,270
|
|
|
$
|
81.4526
|
|
|
3,069,270
|
|
|
$
|
1,040,752,944
|
|
Date:
|
July 27, 2018
|
/s/ Mark C. McGivney
|
|
|
|
Mark C. McGivney
|
|
|
|
Chief Financial Officer
|
|
|
|
|
|
Date:
|
July 27, 2018
|
/s/ Stacy M. Mills
|
|
|
|
Stacy M. Mills
|
|
|
|
Vice President & Controller
|
|
|
|
(Chief Accounting Officer)
|
|
Exhibit No.
|
|
Exhibit Name
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
Six Months Ended
June 30, 2018 |
Years Ended December 31,
|
|||||||||||||||||||||
|
(Unaudited)
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income before income taxes
|
$
|
1,635
|
|
|
$
|
2,643
|
|
|
$
|
2,480
|
|
|
$
|
2,307
|
|
|
$
|
2,057
|
|
|
$
|
1,973
|
|
Interest expense
|
129
|
|
|
237
|
|
|
189
|
|
|
163
|
|
|
165
|
|
|
167
|
|
||||||
Portion of rents representative of the interest factor
|
61
|
|
|
118
|
|
|
122
|
|
|
127
|
|
|
131
|
|
|
134
|
|
||||||
|
$
|
1,825
|
|
|
$
|
2,998
|
|
|
$
|
2,791
|
|
|
$
|
2,597
|
|
|
$
|
2,353
|
|
|
$
|
2,274
|
|
Fixed Charges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
$
|
129
|
|
|
$
|
237
|
|
|
$
|
189
|
|
|
$
|
163
|
|
|
$
|
165
|
|
|
$
|
167
|
|
Portion of rents representative of the interest factor
|
61
|
|
|
118
|
|
|
122
|
|
|
127
|
|
|
131
|
|
|
134
|
|
||||||
|
$
|
190
|
|
|
$
|
355
|
|
|
$
|
311
|
|
|
$
|
290
|
|
|
$
|
296
|
|
|
$
|
301
|
|
Ratio of Earnings to Fixed Charges
|
9.6
|
|
|
8.4
|
|
|
9.0
|
|
|
9.0
|
|
|
7.9
|
|
|
7.6
|
|
Date:
|
July 27, 2018
|
|
/s/ Daniel S. Glaser
|
|
|
|
Daniel S. Glaser
|
|
|
|
President and Chief Executive Officer
|
Date:
|
July 27, 2018
|
|
/s/ Mark C. McGivney
|
|
|
|
Mark C. McGivney
|
|
|
|
Chief Financial Officer
|
1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Marsh & McLennan Companies, Inc.
|
Date:
|
July 27, 2018
|
|
/s/ Daniel S. Glaser
|
|
|
|
Daniel S. Glaser
|
|
|
|
President and Chief Executive Officer
|
Date:
|
July 27, 2018
|
|
/s/ Mark C. McGivney
|
|
|
|
Mark C. McGivney
|
|
|
|
Chief Financial Officer
|