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☒
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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☐
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Large Accelerated Filer
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☒
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Accelerated Filer
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☐
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Non-Accelerated Filer
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☐(Do not check if a smaller reporting company)
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Smaller Reporting Company
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☐
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Emerging Growth Company
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☐
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•
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our ability to successfully integrate or achieve the intended benefits of the acquisition of JLT;
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•
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the impact of any investigations, reviews, or other activity by regulatory or law enforcement authorities, including the ongoing investigation by the European Commission competition authority;
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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 identify and patch software vulnerabilities, including those in the existing JLT information systems;
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•
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our ability to maintain our credit ratings and repay our outstanding long-term debt in a timely manner and on favorable terms, including approximately $6.8 billion issued in connection with the acquisition of JLT;
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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 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 and the risks of noncompliance with such laws, including cybersecurity and data privacy regulations such as the E.U.’s General Data Protection Regulation, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and trade sanctions regimes;
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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, including the impact and uncertainty around Brexit or the inability to collect on our receivables;
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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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our ability to manage risks associated with our investment management and related services business, including potential conflicts of interest between investment consulting and fiduciary management 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; and
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•
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the impact of changes in tax laws, guidance and interpretations, including certain provisions of the U.S. Tax Cuts and Jobs Act, or disagreements with tax authorities.
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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
September 30, |
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Nine Months Ended
September 30, |
||||||||||||
(In millions, except per share amounts)
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2019
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2018
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2019
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2018
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Revenue
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$
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3,968
|
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$
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3,504
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$
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12,388
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$
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11,238
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Expense:
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||||||||
Compensation and benefits
|
2,437
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2,083
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7,256
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6,442
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||||
Other operating expenses
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1,064
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880
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3,047
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2,656
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Operating expenses
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3,501
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2,963
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10,303
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9,098
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||||
Operating income
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467
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541
|
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2,085
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2,140
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||||
Other net benefit credits
|
69
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63
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203
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|
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194
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||||
Interest income
|
4
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2
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34
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|
|
8
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||||
Interest expense
|
(133
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)
|
|
(69
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)
|
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(394
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)
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(198
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)
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||||
Cost of extinguishment of debt
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—
|
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—
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(32
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)
|
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—
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||||
Investment income (loss)
|
7
|
|
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(52
|
)
|
|
20
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|
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(24
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)
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||||
Acquisition related derivative contracts
|
—
|
|
|
(100
|
)
|
|
(8
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)
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(100
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)
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||||
Income before income taxes
|
414
|
|
|
385
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|
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1,908
|
|
|
2,020
|
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||||
Income tax expense
|
108
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|
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106
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531
|
|
|
509
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Net income before non-controlling interests
|
306
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|
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279
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1,377
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|
|
1,511
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||||
Less: Net income attributable to non-controlling interests
|
3
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|
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3
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26
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|
|
14
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Net income attributable to the Company
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$
|
303
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$
|
276
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$
|
1,351
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$
|
1,497
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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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0.60
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$
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0.55
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$
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2.67
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$
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2.96
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Diluted
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$
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0.59
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$
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0.54
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$
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2.64
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$
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2.93
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Average number of shares outstanding:
|
|
|
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Basic
|
506
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|
504
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|
506
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506
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Diluted
|
511
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|
510
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511
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512
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Shares outstanding at September 30,
|
505
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|
504
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505
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|
504
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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(In millions)
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2019
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2018
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2019
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2018
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Net income before non-controlling interests
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$
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306
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$
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279
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$
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1,377
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$
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1,511
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Other comprehensive (loss) income, before tax:
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Foreign currency translation adjustments
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(475
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)
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(237
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)
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(366
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)
|
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(538
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)
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Gain related to pension/post-retirement plans
|
82
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23
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|
102
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|
|
131
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|
||||
Other comprehensive (loss), before tax
|
(393
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)
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(214
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)
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(264
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)
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(407
|
)
|
||||
Income tax on other comprehensive loss
|
11
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9
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|
|
20
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|
|
24
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|
||||
Other comprehensive (loss), net of tax
|
(404
|
)
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|
(223
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)
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|
(284
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)
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(431
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)
|
||||
Comprehensive (loss) income
|
(98
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)
|
|
56
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|
|
1,093
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|
1,080
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||||
Less: comprehensive income attributable to non-controlling interest
|
3
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|
|
3
|
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|
26
|
|
|
14
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|
||||
Comprehensive (loss) income attributable to the Company
|
$
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(101
|
)
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$
|
53
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|
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$
|
1,067
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$
|
1,066
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|
(In millions, except share amounts)
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(Unaudited)
September 30, 2019 |
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December 31,
2018 |
||||
ASSETS
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|
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|
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Current assets:
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|
||||
Cash and cash equivalents
|
$
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1,213
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$
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1,066
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Receivables
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|
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|
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Commissions and fees
|
4,636
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3,984
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Advanced premiums and claims
|
126
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|
|
79
|
|
||
Other
|
575
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|
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366
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|
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|
5,337
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|
4,429
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|
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Less-allowance for doubtful accounts and cancellations
|
(139
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)
|
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(112
|
)
|
||
Net receivables
|
5,198
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|
|
4,317
|
|
||
Other current assets
|
645
|
|
|
551
|
|
||
Total current assets
|
7,056
|
|
|
5,934
|
|
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Goodwill
|
14,286
|
|
|
9,599
|
|
||
Other intangible assets
|
2,869
|
|
|
1,437
|
|
||
Fixed assets
(net of accumulated depreciation and amortization of $1,944 at September 30, 2019 and $1,842 at December 31, 2018) |
816
|
|
|
701
|
|
||
Pension related assets
|
1,857
|
|
|
1,688
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|
||
Right of use assets
|
1,957
|
|
|
—
|
|
||
Deferred tax assets
|
603
|
|
|
680
|
|
||
Other assets
|
1,653
|
|
|
1,539
|
|
||
|
$
|
31,097
|
|
|
$
|
21,578
|
|
(In millions, except share amounts)
|
(Unaudited)
September 30, 2019 |
|
December 31,
2018 |
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term debt
|
$
|
1,139
|
|
|
$
|
314
|
|
Accounts payable and accrued liabilities
|
2,479
|
|
|
2,234
|
|
||
Accrued compensation and employee benefits
|
1,762
|
|
|
1,778
|
|
||
Acquisition related derivatives
|
—
|
|
|
441
|
|
||
Current lease liabilities
|
341
|
|
|
—
|
|
||
Accrued income taxes
|
251
|
|
|
157
|
|
||
Dividends payable
|
232
|
|
|
—
|
|
||
Total current liabilities
|
6,204
|
|
|
4,924
|
|
||
Fiduciary liabilities
|
7,547
|
|
|
5,001
|
|
||
Less – cash and investments held in a fiduciary capacity
|
(7,547
|
)
|
|
(5,001
|
)
|
||
|
—
|
|
|
—
|
|
||
Long-term debt
|
11,429
|
|
|
5,510
|
|
||
Pension, post-retirement and post-employment benefits
|
1,998
|
|
|
1,911
|
|
||
Long-term lease liabilities
|
1,957
|
|
|
—
|
|
||
Liabilities for errors and omissions
|
324
|
|
|
287
|
|
||
Other liabilities
|
1,388
|
|
|
1,362
|
|
||
Commitments and contingencies
|
—
|
|
|
—
|
|
||
Equity:
|
|
|
|
||||
Preferred stock, $1 par value, authorized 6,000,000 shares, none issued
|
—
|
|
|
—
|
|
||
Common stock, $1 par value, authorized 1,600,000,000 shares,
issued 560,641,640 shares at September 30, 2019 and December 31, 2018
|
561
|
|
|
561
|
|
||
Additional paid-in capital
|
796
|
|
|
817
|
|
||
Retained earnings
|
14,811
|
|
|
14,347
|
|
||
Accumulated other comprehensive loss
|
(4,931
|
)
|
|
(4,647
|
)
|
||
Non-controlling interests
|
177
|
|
|
73
|
|
||
|
11,414
|
|
|
11,151
|
|
||
Less – treasury shares, at cost, 55,643,998 shares at September 30, 2019
and 56,804,468 shares at December 31, 2018
|
(3,617
|
)
|
|
(3,567
|
)
|
||
Total equity
|
7,797
|
|
|
7,584
|
|
||
|
$
|
31,097
|
|
|
$
|
21,578
|
|
For the Nine Months Ended September 30,
|
|
|
|
||||
(In millions)
|
2019
|
|
|
2018
|
|
||
Operating cash flows:
|
|
|
|
||||
Net income before non-controlling interests
|
$
|
1,377
|
|
|
$
|
1,511
|
|
Adjustments to reconcile net income to cash provided by operations:
|
|
|
|
||||
Depreciation and amortization of fixed assets and capitalized software
|
245
|
|
|
236
|
|
||
Amortization of intangible assets
|
235
|
|
|
135
|
|
||
Non cash lease expense
|
236
|
|
|
—
|
|
||
Adjustments and payments related to contingent consideration liability
|
(9
|
)
|
|
(10
|
)
|
||
Charge for early extinguishment of debt
|
32
|
|
|
—
|
|
||
Provision for deferred income taxes
|
95
|
|
|
66
|
|
||
Loss (gain) on investments
|
(20
|
)
|
|
24
|
|
||
Loss (gain) on disposition of assets
|
36
|
|
|
(53
|
)
|
||
Share-based compensation expense
|
184
|
|
|
146
|
|
||
Change in fair value of acquisition-related derivative contracts
|
8
|
|
|
100
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Net receivables
|
(84
|
)
|
|
(210
|
)
|
||
Other current assets
|
30
|
|
|
19
|
|
||
Other assets
|
(59
|
)
|
|
(51
|
)
|
||
Accounts payable and accrued liabilities
|
(126
|
)
|
|
(3
|
)
|
||
Accrued compensation and employee benefits
|
(281
|
)
|
|
(312
|
)
|
||
Accrued income taxes
|
120
|
|
|
(13
|
)
|
||
Contributions to pension and other benefit plans in excess of current year expense/credit
|
(269
|
)
|
|
(250
|
)
|
||
Other liabilities
|
(149
|
)
|
|
11
|
|
||
Operating lease liabilities
|
(240
|
)
|
|
—
|
|
||
Effect of exchange rate changes
|
(70
|
)
|
|
(27
|
)
|
||
Net cash provided by operations
|
1,291
|
|
|
1,319
|
|
||
Financing cash flows:
|
|
|
|
||||
Purchase of treasury shares
|
(300
|
)
|
|
(675
|
)
|
||
Net increase in commercial paper
|
325
|
|
|
75
|
|
||
Net increase in short term borrowings
|
300
|
|
|
—
|
|
||
Proceeds from issuance of debt
|
6,459
|
|
|
592
|
|
||
Repayments of debt
|
(760
|
)
|
|
(10
|
)
|
||
Payment of bridge loan fees
|
—
|
|
|
(24
|
)
|
||
Payments for early extinguishment of debt
|
(585
|
)
|
|
—
|
|
||
Purchase of non-controlling interests
|
(75
|
)
|
|
—
|
|
||
Acquisition-related derivative payments
|
(337
|
)
|
|
—
|
|
||
Shares withheld for taxes on vested units – treasury shares
|
(89
|
)
|
|
(62
|
)
|
||
Issuance of common stock from treasury shares
|
132
|
|
|
72
|
|
||
Payments of deferred and contingent consideration for acquisitions
|
(60
|
)
|
|
(106
|
)
|
||
Distributions of non-controlling interests
|
(18
|
)
|
|
(15
|
)
|
||
Dividends paid
|
(655
|
)
|
|
(594
|
)
|
||
Net cash provided by (used for) financing activities
|
4,337
|
|
|
(747
|
)
|
||
Investing cash flows:
|
|
|
|
||||
Capital expenditures
|
(284
|
)
|
|
(222
|
)
|
||
Sales (purchases) of long-term investments
|
193
|
|
|
(1
|
)
|
||
Purchase of equity investment
|
(91
|
)
|
|
—
|
|
||
Proceeds from sales of fixed assets
|
4
|
|
|
3
|
|
||
Dispositions
|
225
|
|
|
5
|
|
||
Acquisitions
|
(5,500
|
)
|
|
(536
|
)
|
||
Other, net
|
(51
|
)
|
|
(1
|
)
|
||
Net cash used for investing activities
|
(5,504
|
)
|
|
(752
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
23
|
|
|
(74
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
147
|
|
|
(254
|
)
|
||
Cash and cash equivalents at beginning of period
|
1,066
|
|
|
1,205
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,213
|
|
|
$
|
951
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions, except per share amounts)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
COMMON STOCK
|
|
|
|
|
|
|
|
||||||||
Balance, beginning and end of period
|
$
|
561
|
|
|
$
|
561
|
|
|
$
|
561
|
|
|
$
|
561
|
|
ADDITIONAL PAID-IN CAPITAL
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
736
|
|
|
$
|
732
|
|
|
$
|
817
|
|
|
$
|
784
|
|
Change in accrued stock compensation costs
|
65
|
|
|
46
|
|
|
23
|
|
|
20
|
|
||||
Issuance of shares under stock compensation plans and employee stock purchase plans
|
(5
|
)
|
|
(7
|
)
|
|
(44
|
)
|
|
(33
|
)
|
||||
Balance, end of period
|
$
|
796
|
|
|
$
|
771
|
|
|
$
|
796
|
|
|
$
|
771
|
|
RETAINED EARNINGS
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
14,741
|
|
|
$
|
14,131
|
|
|
$
|
14,347
|
|
|
$
|
13,140
|
|
Cumulative effect of adoption of the revenue recognition standard
(See Note 19)
|
—
|
|
|
—
|
|
|
—
|
|
|
364
|
|
||||
Net income attributable to the Company
|
303
|
|
|
276
|
|
|
1,351
|
|
|
1,497
|
|
||||
Dividend equivalents declared
|
(2
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
(5
|
)
|
||||
Dividends declared
|
(231
|
)
|
|
(209
|
)
|
|
(881
|
)
|
|
(800
|
)
|
||||
Balance, end of period
|
$
|
14,811
|
|
|
$
|
14,196
|
|
|
$
|
14,811
|
|
|
$
|
14,196
|
|
ACCUMULATED OTHER COMPREHENSIVE LOSS
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
(4,527
|
)
|
|
$
|
(4,265
|
)
|
|
$
|
(4,647
|
)
|
|
$
|
(4,043
|
)
|
Cumulative effect of adoption of the financial instruments standard (See Note 19)
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
||||
Other comprehensive loss, net of tax
|
(404
|
)
|
|
(223
|
)
|
|
(284
|
)
|
|
(431
|
)
|
||||
Balance, end of period
|
$
|
(4,931
|
)
|
|
$
|
(4,488
|
)
|
|
$
|
(4,931
|
)
|
|
$
|
(4,488
|
)
|
TREASURY SHARES
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
(3,446
|
)
|
|
$
|
(3,443
|
)
|
|
$
|
(3,567
|
)
|
|
$
|
(3,083
|
)
|
Issuance of shares under stock compensation plans and employee stock purchase plans
|
29
|
|
|
31
|
|
|
250
|
|
|
171
|
|
||||
Purchase of treasury shares
|
(200
|
)
|
|
(175
|
)
|
|
(300
|
)
|
|
(675
|
)
|
||||
Balance, end of period
|
$
|
(3,617
|
)
|
|
$
|
(3,587
|
)
|
|
$
|
(3,617
|
)
|
|
$
|
(3,587
|
)
|
NON-CONTROLLING INTERESTS
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
272
|
|
|
$
|
81
|
|
|
$
|
73
|
|
|
$
|
83
|
|
Net income attributable to non-controlling interests
|
3
|
|
|
3
|
|
|
26
|
|
|
14
|
|
||||
Net non-controlling interests (disposed) acquired
|
(100
|
)
|
|
—
|
|
|
95
|
|
|
—
|
|
||||
Distributions and other changes
|
2
|
|
|
1
|
|
|
(17
|
)
|
|
(12
|
)
|
||||
Balance, end of period
|
$
|
177
|
|
|
$
|
85
|
|
|
$
|
177
|
|
|
$
|
85
|
|
TOTAL EQUITY
|
$
|
7,797
|
|
|
$
|
7,538
|
|
|
$
|
7,797
|
|
|
$
|
7,538
|
|
Dividends declared per share
|
$
|
0.455
|
|
|
$
|
0.415
|
|
|
$
|
1.740
|
|
|
$
|
1.580
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||
(In millions)
|
|
2019
|
|
2019
|
||||
Marsh:
|
|
|
|
|
||||
EMEA
|
|
$
|
536
|
|
|
$
|
1,821
|
|
Asia Pacific
|
|
242
|
|
|
698
|
|
||
Latin America
|
|
110
|
|
|
304
|
|
||
Total International
|
|
888
|
|
|
2,823
|
|
||
U.S./Canada
|
|
1,014
|
|
|
2,972
|
|
||
Total Marsh
|
|
1,902
|
|
|
5,795
|
|
||
Guy Carpenter
|
|
273
|
|
|
1,328
|
|
||
Subtotal
|
|
2,175
|
|
|
7,123
|
|
||
Fiduciary interest income
|
|
31
|
|
|
80
|
|
||
Total Risk and Insurance Services
|
|
$
|
2,206
|
|
|
$
|
7,203
|
|
Mercer:
|
|
|
|
|
||||
Wealth
|
|
$
|
592
|
|
|
$
|
1,748
|
|
Health
|
|
441
|
|
|
1,341
|
|
||
Career
|
|
247
|
|
|
606
|
|
||
Total Mercer
|
|
1,280
|
|
|
3,695
|
|
||
Oliver Wyman
|
|
505
|
|
|
1,563
|
|
||
Total Consulting
|
|
$
|
1,785
|
|
|
$
|
5,258
|
|
(In millions)
|
|
September 30, 2019
|
|
January 1, 2019
|
||||
Contract Assets
|
|
$
|
240
|
|
|
$
|
112
|
|
Contract Liabilities
|
|
$
|
611
|
|
|
$
|
545
|
|
Basic and Diluted EPS Calculation
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions, except per share amounts)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Net income before non-controlling interests
|
$
|
306
|
|
|
$
|
279
|
|
|
$
|
1,377
|
|
|
$
|
1,511
|
|
Less: Net income attributable to non-controlling interests
|
3
|
|
|
3
|
|
|
26
|
|
|
14
|
|
||||
Net income attributable to the Company
|
$
|
303
|
|
|
$
|
276
|
|
|
$
|
1,351
|
|
|
$
|
1,497
|
|
Basic weighted average common shares outstanding
|
506
|
|
|
504
|
|
|
506
|
|
|
506
|
|
||||
Dilutive effect of potentially issuable common shares
|
5
|
|
|
6
|
|
|
5
|
|
|
6
|
|
||||
Diluted weighted average common shares outstanding
|
511
|
|
|
510
|
|
|
511
|
|
|
512
|
|
||||
Average stock price used to calculate common stock equivalents
|
$
|
99.97
|
|
|
$
|
84.68
|
|
|
$
|
94.75
|
|
|
$
|
83.05
|
|
(In millions)
|
2019
|
|
|
2018
|
|
||
Assets acquired, excluding cash
|
$
|
8,619
|
|
|
$
|
679
|
|
Liabilities assumed
|
(2,758
|
)
|
|
(35
|
)
|
||
Non-controlling interests assumed
|
(295
|
)
|
|
—
|
|
||
Contingent/deferred purchase consideration
|
(66
|
)
|
|
(108
|
)
|
||
Net cash outflow for current year acquisitions
|
$
|
5,500
|
|
|
$
|
536
|
|
(In millions)
|
2019
|
|
|
2018
|
|
||
Interest paid
|
$
|
387
|
|
|
$
|
225
|
|
Income taxes paid, net of refunds
|
$
|
442
|
|
|
$
|
455
|
|
(In millions)
|
Unrealized Investment Gains (Losses)
|
|
Pension/Post-Retirement Plans Gains (Losses)
|
|
Foreign Currency Translation Gains (Losses)
|
|
Total Gains (Losses)
|
||||||||
Balance as of July 1, 2019
|
$
|
—
|
|
|
$
|
(2,942
|
)
|
|
$
|
(1,585
|
)
|
|
$
|
(4,527
|
)
|
Other comprehensive income before reclassifications
|
—
|
|
|
56
|
|
|
(475
|
)
|
|
(419
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||
Net current period other comprehensive income (loss)
|
—
|
|
|
71
|
|
|
(475
|
)
|
|
(404
|
)
|
||||
Balance as of September 30, 2019
|
$
|
—
|
|
|
$
|
(2,871
|
)
|
|
$
|
(2,060
|
)
|
|
$
|
(4,931
|
)
|
(In millions)
|
Unrealized Investment Gains (Losses)
|
|
Pension/Post-Retirement Plans Gains (Losses)
|
|
Foreign Currency Translation Gains (Losses)
|
|
Total Gains (Losses)
|
||||||||
Balance as of July 1, 2018
|
$
|
—
|
|
|
$
|
(2,807
|
)
|
|
$
|
(1,458
|
)
|
|
$
|
(4,265
|
)
|
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
(13
|
)
|
|
(242
|
)
|
|
(255
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
||||
Net current period other comprehensive income (loss)
|
—
|
|
|
19
|
|
|
(242
|
)
|
|
(223
|
)
|
||||
Balance as of September 30, 2018
|
$
|
—
|
|
|
$
|
(2,788
|
)
|
|
$
|
(1,700
|
)
|
|
$
|
(4,488
|
)
|
(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, 2018
|
$
|
—
|
|
|
$
|
(2,953
|
)
|
|
$
|
(1,694
|
)
|
|
$
|
(4,647
|
)
|
Other comprehensive (loss) income before reclassifications
|
—
|
|
|
26
|
|
|
(366
|
)
|
|
(340
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
56
|
|
|
—
|
|
|
56
|
|
||||
Net current period other comprehensive income (loss)
|
—
|
|
|
82
|
|
|
(366
|
)
|
|
(284
|
)
|
||||
Balance as of September 30, 2019
|
$
|
—
|
|
|
$
|
(2,871
|
)
|
|
$
|
(2,060
|
)
|
|
$
|
(4,931
|
)
|
(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
|
—
|
|
|
16
|
|
|
(535
|
)
|
|
(519
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
88
|
|
|
—
|
|
|
88
|
|
||||
Net current period other comprehensive income (loss)
|
—
|
|
|
104
|
|
|
(535
|
)
|
|
(431
|
)
|
||||
Balance as of September 30, 2018
|
$
|
—
|
|
|
$
|
(2,788
|
)
|
|
$
|
(1,700
|
)
|
|
$
|
(4,488
|
)
|
•
|
February – MMA acquired Bouchard Insurance, Inc., a Florida-based full service agency and Employee Benefits Group, Inc., a Maryland-based independent insurance agency.
|
•
|
April – MMA acquired Lovitt & Touche, Inc., an Arizona-based insurance agency and The Centurion Group, LLC, a Pennsylvania-based retirement consulting, asset management and benefit plan advisory firm.
|
•
|
Amounts of intangible assets, fixed assets, capitalized software assets and right-of-use assets, subject to finalization of valuation efforts;
|
•
|
Amounts for contingencies, pending the finalization of the Company’s assessment of the portfolio of contingencies;
|
•
|
Amounts for income tax assets, receivables and liabilities, pending the filing of the acquired companies' pre-acquisition income tax returns and receipt of information from taxing authorities which may change certain estimates and assumptions used; and
|
•
|
Amounts for deferred tax assets and liabilities pending the finalization of valuations of the assets acquired, liabilities assumed and associated goodwill.
|
Intangible assets through September 30, 2019
(In millions)
|
|
JLT
|
|
Other
|
|
Total
|
|
JLT Weighted Average Amortization Period
|
|
Other Weighted Average Amortization Period
|
||||||
Client relationships
|
|
$
|
1,511
|
|
|
$
|
136
|
|
|
$
|
1,647
|
|
|
13 years
|
|
12 years
|
Other
|
|
102
|
|
|
7
|
|
|
109
|
|
|
4 years
|
|
3 years
|
|||
|
|
$
|
1,613
|
|
|
$
|
143
|
|
|
$
|
1,756
|
|
|
|
|
|
•
|
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.
|
•
|
August – Marsh acquired John L. Wortham & Son, L.P., a Houston-based independent insurance broker.
|
•
|
October – MMA acquired Eustis Insurance, Inc., a Louisiana-based insurance agency.
|
•
|
November – MMA acquired James P. Murphy & Associates, Inc., a Connecticut-based insurance agency.
|
•
|
December – MMA acquired Otis-Magie Insurance Agency, Inc., a Minnesota-based insurance agency, and Marsh acquired Hector Insurance PCC Ltd, a U.K.-based captive management company.
|
•
|
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.
|
•
|
November – Mercer acquired Induslynk Training Services Private Ltd., an India-based talent assessment company, Pavilion Financial Corp., a Canada-based investment services firm and Summit Strategies Inc., a Missouri-based investment consulting firm.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions, except per share figures)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Revenue
|
$
|
3,967
|
|
|
$
|
3,940
|
|
|
$
|
12,830
|
|
|
$
|
12,842
|
|
Net income attributable to the Company
|
$
|
306
|
|
|
$
|
181
|
|
|
$
|
1,445
|
|
|
$
|
804
|
|
Basic net income per share attributable to the Company
|
$
|
0.61
|
|
|
$
|
0.36
|
|
|
$
|
2.85
|
|
|
$
|
1.59
|
|
Diluted net income per share attributable to the Company
|
$
|
0.60
|
|
|
$
|
0.36
|
|
|
$
|
2.83
|
|
|
$
|
1.57
|
|
•
|
A reduction of costs of $4 million for the three months ended September 30, 2019.
|
•
|
An increase in costs of $662 million for the nine month period ended September 30, 2018. Of this amount, $173 million represented a reduction of costs for the nine months ended September 30, 2019, and the remainder was incurred in the third and fourth quarter of 2018.
|
September 30,
|
|
|
|
||||
(In millions)
|
2019
|
|
|
2018
|
|
||
Balance as of January 1,
|
$
|
9,599
|
|
|
$
|
9,089
|
|
Goodwill acquired (a)
|
4,962
|
|
|
410
|
|
||
Other adjustments(b)
|
(275
|
)
|
|
(64
|
)
|
||
Balance at September 30,
|
$
|
14,286
|
|
|
$
|
9,435
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(In millions)
|
Gross
Cost
|
|
|
Accumulated
Amortization
|
|
|
Net
Carrying
Amount
|
|
|
Gross
Cost
|
|
|
Accumulated
Amortization
|
|
|
Net
Carrying
Amount
|
|
||||||
Client Relationships
|
$
|
3,526
|
|
|
$
|
824
|
|
|
$
|
2,702
|
|
|
$
|
1,970
|
|
|
$
|
639
|
|
|
$
|
1,331
|
|
Other (a)
|
364
|
|
|
197
|
|
|
167
|
|
|
259
|
|
|
153
|
|
|
106
|
|
||||||
Amortized intangibles
|
$
|
3,890
|
|
|
$
|
1,021
|
|
|
$
|
2,869
|
|
|
$
|
2,229
|
|
|
$
|
792
|
|
|
$
|
1,437
|
|
For the Years Ending December 31,
|
|
||
(In millions)
|
Estimated Expense
|
|
|
2019 (excludes amortization through September 30, 2019)
|
$
|
95
|
|
2020
|
354
|
|
|
2021
|
343
|
|
|
2022
|
327
|
|
|
2023
|
320
|
|
|
Subsequent years
|
1,430
|
|
|
|
$
|
2,869
|
|
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)
|
09/30/19
|
|
|
12/31/18
|
|
|
09/30/19
|
|
|
12/31/18
|
|
|
09/30/19
|
|
|
12/31/18
|
|
|
09/30/19
|
|
|
12/31/18
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financial instruments owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Exchange traded equity securities(a)
|
$
|
5
|
|
|
$
|
133
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
133
|
|
Mutual funds(a)
|
157
|
|
|
151
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
157
|
|
|
151
|
|
||||||||
Money market funds(b)
|
37
|
|
|
118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
118
|
|
||||||||
Other equity investment(a)
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
||||||||
Contingent purchase consideration asset(a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
65
|
|
|
—
|
|
||||||||
Total assets measured at fair value
|
$
|
199
|
|
|
$
|
402
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
65
|
|
|
$
|
—
|
|
|
$
|
272
|
|
|
$
|
410
|
|
Fiduciary Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury Bills
|
$
|
—
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20
|
|
Money market funds
|
433
|
|
|
80
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
433
|
|
|
80
|
|
||||||||
Total fiduciary assets measured
at fair value
|
$
|
433
|
|
|
$
|
100
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
433
|
|
|
$
|
100
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Contingent purchase
consideration liability(c)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
185
|
|
|
$
|
183
|
|
|
$
|
185
|
|
|
$
|
183
|
|
Acquisition related derivative contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|
—
|
|
|
325
|
|
|
—
|
|
|
441
|
|
||||||||
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
116
|
|
|
$
|
185
|
|
|
$
|
508
|
|
|
$
|
185
|
|
|
$
|
624
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
Balance at beginning of period
|
$
|
196
|
|
|
$
|
185
|
|
|
$
|
508
|
|
$
|
189
|
|
(Reductions) Additions
|
(7
|
)
|
|
8
|
|
|
33
|
|
34
|
|
||||
Payments
|
(13
|
)
|
|
(35
|
)
|
|
(58
|
)
|
(76
|
)
|
||||
Revaluation Impact
|
6
|
|
|
8
|
|
|
26
|
|
19
|
|
||||
Change in fair value of the FX contract
|
—
|
|
|
100
|
|
|
(325
|
)
|
100
|
|
||||
Other (a)
|
3
|
|
|
2
|
|
|
1
|
|
2
|
|
||||
Balance at September 30,
|
$
|
185
|
|
|
$
|
268
|
|
|
$
|
185
|
|
$
|
268
|
|
For the Three and Nine Months Ended September 30, 2019
(In millions)
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||
Lease Cost:
|
|
|
||||
Operating lease cost
|
$
|
94
|
|
$
|
276
|
|
Short-term lease cost
|
4
|
|
7
|
|
||
Variable lease cost
|
37
|
|
113
|
|
||
Sublease income
|
(4
|
)
|
(12
|
)
|
||
Net lease cost
|
$
|
131
|
|
$
|
384
|
|
Other information:
|
|
|
||||
Operating cash outflows from operating leases
|
|
$
|
288
|
|
||
Right of use assets obtained in exchange for new operating lease liabilities
|
|
$
|
112
|
|
||
Weighted-average remaining lease term – real estate
|
|
8.86 years
|
|
|||
Weighted-average discount rate – real estate leases
|
|
3.09
|
%
|
Payment Dates (In millions)
|
Real Estate Leases
|
||
Remainder of 2019
|
$
|
104
|
|
2020
|
406
|
|
|
2021
|
348
|
|
|
2022
|
324
|
|
|
2023
|
279
|
|
|
2024
|
233
|
|
|
Subsequent years
|
940
|
|
|
Total future lease payments
|
2,634
|
|
|
Less: Imputed interest
|
(336
|
)
|
|
Total
|
$
|
2,298
|
|
Current lease liabilities
|
$
|
341
|
|
Long-term lease liabilities
|
1,957
|
|
|
Total lease liabilities
|
$
|
2,298
|
|
For the Year Ended December 31,
|
Gross
Rental
Commitments
|
|
Rentals
from
Subleases
|
|
Net
Rental
Commitments
|
||||||
(In millions of dollars)
|
|
|
|||||||||
2019
|
$
|
361
|
|
|
$
|
32
|
|
|
$
|
329
|
|
2020
|
$
|
340
|
|
|
$
|
31
|
|
|
$
|
309
|
|
2021
|
$
|
277
|
|
|
$
|
12
|
|
|
$
|
265
|
|
2022
|
$
|
252
|
|
|
$
|
10
|
|
|
$
|
242
|
|
2023
|
$
|
214
|
|
|
$
|
9
|
|
|
$
|
205
|
|
Subsequent years
|
$
|
753
|
|
|
$
|
32
|
|
|
$
|
721
|
|
Combined U.S. and significant non-U.S. Plans
|
Pension
Benefits
|
|
Post-retirement
Benefits
|
||||||||||||
For the Three Months Ended September 30,
|
|
||||||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Service cost
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Interest cost
|
120
|
|
|
114
|
|
|
1
|
|
|
—
|
|
||||
Expected return on plan assets
|
(214
|
)
|
|
(213
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service (credit) cost
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Recognized actuarial loss
|
25
|
|
|
36
|
|
|
(1
|
)
|
|
1
|
|
||||
Net periodic benefit (credit) cost
|
$
|
(59
|
)
|
|
$
|
(55
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
||||||||
Combined U.S. and significant non-U.S. Plans
|
Pension
Benefits
|
|
Post-retirement
Benefits
|
||||||||||||
For the Nine Months Ended September 30,
|
|
||||||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Service cost
|
$
|
28
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Interest cost
|
360
|
|
|
349
|
|
|
2
|
|
|
2
|
|
||||
Expected return on plan assets
|
(644
|
)
|
|
(652
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service credit
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(3
|
)
|
||||
Recognized actuarial loss
|
77
|
|
|
110
|
|
|
(1
|
)
|
|
1
|
|
||||
Net periodic benefit (credit) cost
|
$
|
(179
|
)
|
|
$
|
(169
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
Settlement loss
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total (credit) cost
|
$
|
(175
|
)
|
|
$
|
(169
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
U.S. Plans only
|
Pension
Benefits |
|
Post-retirement
Benefits |
||||||||||||
For the Three Months Ended September 30,
|
|
||||||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Interest cost
|
$
|
61
|
|
|
$
|
58
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Expected return on plan assets
|
(86
|
)
|
|
(89
|
)
|
|
—
|
|
|
—
|
|
||||
Recognized actuarial loss
|
11
|
|
|
14
|
|
|
(1
|
)
|
|
—
|
|
||||
Net periodic benefit credit
|
$
|
(14
|
)
|
|
$
|
(17
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Plans only
|
Pension
Benefits |
|
Post-retirement
Benefits |
||||||||||||
For the Nine Months Ended September 30,
|
|
||||||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Interest cost
|
$
|
181
|
|
|
$
|
176
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Expected return on plan assets
|
(257
|
)
|
|
(268
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service credit
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Recognized actuarial loss (credit)
|
33
|
|
|
41
|
|
|
(1
|
)
|
|
—
|
|
||||
Net periodic benefit credit
|
$
|
(43
|
)
|
|
$
|
(51
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Significant non-U.S. Plans only
|
Pension
Benefits |
|
Post-retirement
Benefits |
||||||||||||
For the Three Months Ended September 30,
|
|
||||||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Service cost
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Interest cost
|
59
|
|
|
56
|
|
|
—
|
|
|
—
|
|
||||
Expected return on plan assets
|
(128
|
)
|
|
(124
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service credit
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Recognized actuarial loss
|
14
|
|
|
22
|
|
|
—
|
|
|
1
|
|
||||
Net periodic benefit (credit) cost
|
$
|
(45
|
)
|
|
$
|
(38
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
Significant non-U.S. Plans only
|
Pension
Benefits |
|
Post-retirement
Benefits |
||||||||||||
For the Nine Months Ended September 30,
|
|
||||||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Service cost
|
$
|
28
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Interest cost
|
179
|
|
|
173
|
|
|
1
|
|
|
1
|
|
||||
Expected return on plan assets
|
(387
|
)
|
|
(384
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service credit
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Recognized actuarial loss
|
44
|
|
|
69
|
|
|
—
|
|
|
1
|
|
||||
Net periodic benefit (credit) cost
|
$
|
(136
|
)
|
|
$
|
(118
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
Settlement loss
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total (credit) cost
|
$
|
(132
|
)
|
|
$
|
(118
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
Combined U.S. and significant non-U.S. Plans
|
Pension
Benefits |
|
Post-retirement
Benefits |
||||||||
|
|||||||||||
September 30,
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Weighted average assumptions:
|
|
|
|
|
|
|
|
||||
Expected return on plan assets
|
5.74
|
%
|
|
5.83
|
%
|
|
—
|
|
|
—
|
|
Discount Rate
|
3.48
|
%
|
|
3.07
|
%
|
|
3.65
|
%
|
|
3.21
|
%
|
Rate of compensation increase
|
1.74
|
%
|
|
1.73
|
%
|
|
—
|
|
|
—
|
|
(In millions)
|
September 30,
2019 |
|
|
December 31,
2018 |
|
||
Short-term:
|
|
|
|
||||
Commercial paper
|
$
|
325
|
|
|
$
|
—
|
|
Term loan facility
|
300
|
|
|
—
|
|
||
Current portion of long-term debt
|
514
|
|
|
314
|
|
||
|
1,139
|
|
|
314
|
|
||
Long-term:
|
|
|
|
||||
Senior notes – 2.35% due 2019
|
—
|
|
|
300
|
|
||
Senior notes – 2.35% due 2020
|
500
|
|
|
499
|
|
||
Senior notes – 3.50% due 2020
|
698
|
|
|
—
|
|
||
Senior notes – 4.80% due 2021
|
499
|
|
|
499
|
|
||
Senior notes - Floating rate due 2021
|
298
|
|
|
—
|
|
||
Senior notes – 2.75% due 2022
|
498
|
|
|
497
|
|
||
Senior notes – 3.30% due 2023
|
348
|
|
|
348
|
|
||
Senior notes – 4.05% due 2023
|
249
|
|
|
249
|
|
||
Senior notes – 3.50% due 2024
|
597
|
|
|
597
|
|
||
Senior notes – 3.875% due 2024
|
993
|
|
|
—
|
|
||
Senior notes – 3.50% due 2025
|
497
|
|
|
496
|
|
||
Senior notes – 1.349% due 2026
|
603
|
|
|
—
|
|
||
Senior notes – 3.75% due 2026
|
597
|
|
|
596
|
|
||
Senior notes – 4.375% due 2029
|
1,499
|
|
|
—
|
|
||
Senior notes – 1.979% due 2030
|
602
|
|
|
—
|
|
||
Senior notes – 5.875% due 2033
|
298
|
|
|
297
|
|
||
Senior notes – 4.75% due 2039
|
494
|
|
|
—
|
|
||
Senior notes – 4.35% due 2047
|
492
|
|
|
492
|
|
||
Senior notes – 4.20% due 2048
|
592
|
|
|
592
|
|
||
Senior notes – 4.90% due 2049
|
1,237
|
|
|
—
|
|
||
Mortgage – 5.70% due 2035
|
347
|
|
|
358
|
|
||
Other
|
5
|
|
|
4
|
|
||
|
11,943
|
|
|
5,824
|
|
||
Less current portion
|
514
|
|
|
314
|
|
||
|
$
|
11,429
|
|
|
$
|
5,510
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
(In millions)
|
Carrying
Amount
|
|
|
Fair
Value
|
|
|
Carrying
Amount
|
|
|
Fair
Value
|
|
||||
Short-term debt
|
$
|
1,139
|
|
|
$
|
1,140
|
|
|
$
|
314
|
|
|
$
|
313
|
|
Long-term debt
|
$
|
11,429
|
|
|
$
|
12,666
|
|
|
$
|
5,510
|
|
|
$
|
5,437
|
|
|
(In millions)
|
Severance
|
|
Real Estate Related Costs (a)
|
|
Information Technology (a)
|
|
Consulting and Other Outside Services (b)
|
|
Total
|
||||||||||
Liability at 1/1/19
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
2019 Charges
|
92
|
|
|
21
|
|
|
9
|
|
|
70
|
|
|
192
|
|
|||||
Cash payments
|
(59
|
)
|
|
(5
|
)
|
|
(9
|
)
|
|
(70
|
)
|
|
(143
|
)
|
|||||
Non-cash charges
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|||||
Liability at 9/30/19
|
$
|
33
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
42
|
|
(In millions)
|
Liability at
1/1/18
|
|
Amounts
Accrued
|
|
Cash
Paid
|
|
Other
|
|
Liability at 12/31/18
|
|
Amounts
Accrued
|
|
Cash
Paid
|
|
Other
|
|
Liability at 9/30/19
|
||||||||||||||||||
Severance
|
$
|
15
|
|
|
$
|
137
|
|
|
$
|
(77
|
)
|
|
$
|
(2
|
)
|
|
$
|
73
|
|
|
$
|
44
|
|
|
$
|
(95
|
)
|
|
$
|
(4
|
)
|
|
$
|
18
|
|
Future rent under non-cancelable leases and other costs
|
50
|
|
|
24
|
|
|
(37
|
)
|
|
2
|
|
|
39
|
|
|
12
|
|
|
(13
|
)
|
|
(6
|
)
|
|
$
|
32
|
|
||||||||
Total
|
$
|
65
|
|
|
$
|
161
|
|
|
$
|
(114
|
)
|
|
$
|
—
|
|
|
$
|
112
|
|
|
$
|
56
|
|
|
$
|
(108
|
)
|
|
$
|
(10
|
)
|
|
$
|
50
|
|
▪
|
Risk and Insurance Services, comprising insurance services (Marsh) and reinsurance services (Guy Carpenter); and
|
▪
|
Consulting, comprising Mercer and Oliver Wyman Group.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions)
|
Revenue
|
|
Operating Income
(Loss)
|
|
Revenue
|
|
Operating Income
(Loss)
|
||||||||
2019–
|
|
|
|
|
|
|
|
||||||||
Risk and Insurance Services
|
$
|
2,206
|
|
(a)
|
$
|
218
|
|
|
$
|
7,203
|
|
(c)
|
$
|
1,468
|
|
Consulting
|
1,785
|
|
(b)
|
317
|
|
|
5,258
|
|
(d)
|
874
|
|
||||
Total Operating Segments
|
3,991
|
|
|
535
|
|
|
12,461
|
|
|
2,342
|
|
||||
Corporate/Eliminations
|
(23
|
)
|
|
(68
|
)
|
|
(73
|
)
|
|
(257
|
)
|
||||
Total Consolidated
|
$
|
3,968
|
|
|
$
|
467
|
|
|
$
|
12,388
|
|
|
$
|
2,085
|
|
2018–
|
|
|
|
|
|
|
|
||||||||
Risk and Insurance Services
|
$
|
1,863
|
|
(a)
|
$
|
293
|
|
|
$
|
6,303
|
|
(c)
|
$
|
1,481
|
|
Consulting
|
1,656
|
|
(b)
|
291
|
|
|
4,974
|
|
(d)
|
805
|
|
||||
Total Operating Segments
|
3,519
|
|
|
584
|
|
|
11,277
|
|
|
2,286
|
|
||||
Corporate/Eliminations
|
(15
|
)
|
|
(43
|
)
|
|
(39
|
)
|
|
(146
|
)
|
||||
Total Consolidated
|
$
|
3,504
|
|
|
$
|
541
|
|
|
$
|
11,238
|
|
|
$
|
2,140
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Risk and Insurance Services
|
|
|
|
|
|
|
|
||||||||
Marsh
|
$
|
1,923
|
|
|
$
|
1,643
|
|
|
$
|
5,850
|
|
|
$
|
5,106
|
|
Guy Carpenter
|
283
|
|
|
220
|
|
|
1,353
|
|
|
1,197
|
|
||||
Total Risk and Insurance Services
|
2,206
|
|
|
1,863
|
|
|
7,203
|
|
|
6,303
|
|
||||
Consulting
|
|
|
|
|
|
|
|
||||||||
Mercer
|
1,280
|
|
|
1,175
|
|
|
3,695
|
|
|
3,504
|
|
||||
Oliver Wyman Group
|
505
|
|
|
481
|
|
|
1,563
|
|
|
1,470
|
|
||||
Total Consulting
|
1,785
|
|
|
1,656
|
|
|
5,258
|
|
|
4,974
|
|
||||
Total Operating Segments
|
3,991
|
|
|
3,519
|
|
|
12,461
|
|
|
11,277
|
|
||||
Corporate/Eliminations
|
(23
|
)
|
|
(15
|
)
|
|
(73
|
)
|
|
(39
|
)
|
||||
Total
|
$
|
3,968
|
|
|
$
|
3,504
|
|
|
$
|
12,388
|
|
|
$
|
11,238
|
|
•
|
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.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions, except per share figures)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Revenue
|
$
|
3,968
|
|
|
$
|
3,504
|
|
|
$
|
12,388
|
|
|
$
|
11,238
|
|
Expense:
|
|
|
|
|
|
|
|
||||||||
Compensation and Benefits
|
2,437
|
|
|
2,083
|
|
|
7,256
|
|
|
6,442
|
|
||||
Other Operating Expenses
|
1,064
|
|
|
880
|
|
|
3,047
|
|
|
2,656
|
|
||||
Operating Expenses
|
3,501
|
|
|
2,963
|
|
|
10,303
|
|
|
9,098
|
|
||||
Operating Income
|
467
|
|
|
541
|
|
|
2,085
|
|
|
2,140
|
|
||||
Income Before Income Taxes
|
414
|
|
|
385
|
|
|
1,908
|
|
|
2,020
|
|
||||
Net Income Before Non-Controlling Interests
|
306
|
|
|
279
|
|
|
1,377
|
|
|
1,511
|
|
||||
Net Income Attributable to the Company
|
$
|
303
|
|
|
$
|
276
|
|
|
$
|
1,351
|
|
|
$
|
1,497
|
|
Net Income Per Share Attributable to the Company:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.60
|
|
|
$
|
0.55
|
|
|
$
|
2.67
|
|
|
$
|
2.96
|
|
Diluted
|
$
|
0.59
|
|
|
$
|
0.54
|
|
|
$
|
2.64
|
|
|
$
|
2.93
|
|
Average Number of Shares Outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
506
|
|
|
504
|
|
|
506
|
|
|
506
|
|
||||
Diluted
|
511
|
|
|
510
|
|
|
511
|
|
|
512
|
|
||||
Shares outstanding at September 30,
|
505
|
|
|
504
|
|
|
505
|
|
|
504
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Restructuring costs, excluding JLT
|
$
|
12
|
|
|
$
|
31
|
|
|
$
|
56
|
|
|
$
|
95
|
|
JLT integration and restructuring costs
|
77
|
|
|
—
|
|
|
192
|
|
|
—
|
|
||||
JLT acquisition related costs
|
21
|
|
|
—
|
|
|
133
|
|
|
—
|
|
||||
Impact on operating income
|
110
|
|
|
31
|
|
|
381
|
|
|
95
|
|
||||
Change in fair value of acquisition related derivative contracts
|
—
|
|
|
100
|
|
|
8
|
|
|
100
|
|
||||
Early extinguishment of JLT debt
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
||||
JLT related interest income - pre-acquisition
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
||||
JLT related interest expense - pre-acquisition
|
—
|
|
|
4
|
|
|
53
|
|
|
4
|
|
||||
Investment loss (impairment loss)
|
—
|
|
|
81
|
|
|
—
|
|
|
81
|
|
||||
Impact on income before taxes
|
$
|
110
|
|
|
$
|
216
|
|
|
$
|
449
|
|
|
$
|
280
|
|
|
Three Months Ended
September 30, |
|
% Change GAAP Revenue
|
|
2018 Including JLT
|
|
% Change Including JLT in 2018
|
|
Components of Revenue Change Including JLT*
|
|||||||||||||||||
Currency
Impact |
|
Acquisitions/
Dispositions/ Other Impact |
|
Underlying
Revenue |
||||||||||||||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
||||||||||||||||||||
Risk and Insurance Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Marsh
|
$
|
1,902
|
|
|
$
|
1,630
|
|
|
17
|
%
|
|
$
|
1,889
|
|
|
1
|
%
|
|
(1
|
)%
|
|
(2
|
)%
|
|
5
|
%
|
Guy Carpenter
|
273
|
|
|
215
|
|
|
27
|
%
|
|
248
|
|
|
10
|
%
|
|
—
|
|
|
(1
|
)%
|
|
11
|
%
|
|||
Subtotal
|
2,175
|
|
|
1,845
|
|
|
18
|
%
|
|
2,137
|
|
|
2
|
%
|
|
(1
|
)%
|
|
(2
|
)%
|
|
5
|
%
|
|||
Fiduciary Interest Income
|
31
|
|
|
18
|
|
|
|
|
23
|
|
|
|
|
|
|
|
|
|
||||||||
Total Risk and Insurance Services
|
2,206
|
|
|
1,863
|
|
|
18
|
%
|
|
2,160
|
|
|
2
|
%
|
|
(1
|
)%
|
|
(2
|
)%
|
|
6
|
%
|
|||
Consulting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Mercer
|
1,280
|
|
|
1,175
|
|
|
9
|
%
|
|
1,261
|
|
|
2
|
%
|
|
(2
|
)%
|
|
—
|
|
|
3
|
%
|
|||
Oliver Wyman
|
505
|
|
|
481
|
|
|
5
|
%
|
|
481
|
|
|
5
|
%
|
|
(1
|
)%
|
|
—
|
|
|
7
|
%
|
|||
Total Consulting
|
1,785
|
|
|
1,656
|
|
|
8
|
%
|
|
1,742
|
|
|
3
|
%
|
|
(2
|
)%
|
|
—
|
|
|
4
|
%
|
|||
Corporate/Eliminations
|
(23
|
)
|
|
(15
|
)
|
|
|
|
(15
|
)
|
|
|
|
|
|
|
|
|
||||||||
Total Revenue
|
$
|
3,968
|
|
|
$
|
3,504
|
|
|
13
|
%
|
|
$
|
3,887
|
|
|
2
|
%
|
|
(1
|
)%
|
|
(1
|
)%
|
|
5
|
%
|
|
Three Months Ended
September 30, |
|
% Change GAAP Revenue
|
|
2018 Including JLT
|
|
% Change Including JLT in 2018
|
|
Components of Revenue Change Including JLT*
|
|||||||||||||||||
Currency
Impact
|
|
Acquisitions/
Dispositions/ Other Impact |
|
Underlying
Revenue |
||||||||||||||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
||||||||||||||||||||
Marsh:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
EMEA
|
$
|
536
|
|
|
$
|
441
|
|
|
22
|
%
|
|
$
|
550
|
|
|
(2
|
)%
|
|
(2
|
)%
|
|
(2
|
)%
|
|
2
|
%
|
Asia Pacific
|
242
|
|
|
167
|
|
|
45
|
%
|
|
240
|
|
|
1
|
%
|
|
(2
|
)%
|
|
(4
|
)%
|
|
7
|
%
|
|||
Latin America
|
110
|
|
|
96
|
|
|
14
|
%
|
|
132
|
|
|
(17
|
)%
|
|
(5
|
)%
|
|
(11
|
)%
|
|
(1
|
)%
|
|||
Total International
|
888
|
|
|
704
|
|
|
26
|
%
|
|
922
|
|
|
(4
|
)%
|
|
(3
|
)%
|
|
(4
|
)%
|
|
3
|
%
|
|||
U.S./Canada
|
1,014
|
|
|
926
|
|
|
10
|
%
|
|
967
|
|
|
5
|
%
|
|
—
|
|
|
(1
|
)%
|
|
6
|
%
|
|||
Total Marsh
|
$
|
1,902
|
|
|
$
|
1,630
|
|
|
17
|
%
|
|
$
|
1,889
|
|
|
1
|
%
|
|
(1
|
)%
|
|
(2
|
)%
|
|
5
|
%
|
Mercer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Wealth
|
592
|
|
|
525
|
|
|
13
|
%
|
|
592
|
|
|
—
|
|
|
(3
|
)%
|
|
2
|
%
|
|
—
|
|
|||
Health
|
441
|
|
|
415
|
|
|
7
|
%
|
|
432
|
|
|
2
|
%
|
|
(1
|
)%
|
|
(3
|
)%
|
|
7
|
%
|
|||
Career
|
247
|
|
|
235
|
|
|
5
|
%
|
|
237
|
|
|
5
|
%
|
|
(2
|
)%
|
|
1
|
%
|
|
5
|
%
|
|||
Total Mercer
|
$
|
1,280
|
|
|
$
|
1,175
|
|
|
9
|
%
|
|
$
|
1,261
|
|
|
2
|
%
|
|
(2
|
)%
|
|
—
|
|
|
3
|
%
|
* Components of revenue change may not add due to rounding.
|
|
Nine Months Ended
September 30, |
|
% Change GAAP Revenue
|
|
2018 Including JLT
|
|
% Change Including JLT in 2018
|
|
Components of Revenue Change Including JLT*
|
|||||||||||||||||
Currency
Impact
|
|
Acquisitions/
Dispositions/
Other Impact
|
|
Underlying
Revenue
|
||||||||||||||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
||||||||||||||||||||
Risk and Insurance Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Marsh
|
$
|
5,795
|
|
|
$
|
5,073
|
|
|
14
|
%
|
|
$
|
5,684
|
|
|
2
|
%
|
|
(2
|
)%
|
|
—
|
|
|
4
|
%
|
Guy Carpenter
|
1,328
|
|
|
1,184
|
|
|
12
|
%
|
|
1,292
|
|
|
3
|
%
|
|
(1
|
)%
|
|
—
|
|
|
4
|
%
|
|||
Subtotal
|
7,123
|
|
|
6,257
|
|
|
14
|
%
|
|
6,976
|
|
|
2
|
%
|
|
(2
|
)%
|
|
—
|
|
|
4
|
%
|
|||
Fiduciary Interest Income
|
80
|
|
|
46
|
|
|
|
|
54
|
|
|
|
|
|
|
|
|
|
||||||||
Total Risk and Insurance Services
|
7,203
|
|
|
6,303
|
|
|
14
|
%
|
|
7,030
|
|
|
2
|
%
|
|
(2
|
)%
|
|
—
|
|
|
4
|
%
|
|||
Consulting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Mercer
|
3,695
|
|
|
3,504
|
|
|
5
|
%
|
|
3,677
|
|
|
—
|
|
|
(3
|
)%
|
|
1
|
%
|
|
2
|
%
|
|||
Oliver Wyman
|
1,563
|
|
|
1,470
|
|
|
6
|
%
|
|
1,470
|
|
|
6
|
%
|
|
(2
|
)%
|
|
—
|
|
|
9
|
%
|
|||
Total Consulting
|
5,258
|
|
|
4,974
|
|
|
6
|
%
|
|
5,147
|
|
|
2
|
%
|
|
(3
|
)%
|
|
1
|
%
|
|
4
|
%
|
|||
Corporate/Eliminations
|
(73
|
)
|
|
(39
|
)
|
|
|
|
(39
|
)
|
|
|
|
|
|
|
|
|
||||||||
Total Revenue
|
$
|
12,388
|
|
|
$
|
11,238
|
|
|
10
|
%
|
|
$
|
12,138
|
|
|
2
|
%
|
|
(2
|
)%
|
|
1
|
%
|
|
4
|
%
|
|
Nine Months Ended
September 30, |
|
% Change GAAP Revenue
|
|
2018 Including JLT
|
|
% Change Including JLT in 2018
|
|
Components of Revenue Change Including JLT*
|
|||||||||||||||||
Currency
Impact
|
|
Acquisitions/
Dispositions/
Other Impact
|
|
Underlying
Revenue
|
||||||||||||||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
||||||||||||||||||||
Marsh:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
EMEA
|
$
|
1,821
|
|
|
$
|
1,610
|
|
|
13
|
%
|
|
$
|
1,871
|
|
|
(3
|
)%
|
|
(4
|
)%
|
|
—
|
|
|
2
|
%
|
Asia Pacific
|
698
|
|
|
514
|
|
|
36
|
%
|
|
697
|
|
|
—
|
|
|
(4
|
)%
|
|
(3
|
)%
|
|
7
|
%
|
|||
Latin America
|
304
|
|
|
279
|
|
|
9
|
%
|
|
350
|
|
|
(13
|
)%
|
|
(8
|
)%
|
|
(8
|
)%
|
|
3
|
%
|
|||
Total International
|
2,823
|
|
|
2,403
|
|
|
17
|
%
|
|
2,918
|
|
|
(3
|
)%
|
|
(5
|
)%
|
|
(2
|
)%
|
|
3
|
%
|
|||
U.S./Canada
|
2,972
|
|
|
2,670
|
|
|
11
|
%
|
|
2,766
|
|
|
7
|
%
|
|
—
|
|
|
3
|
%
|
|
5
|
%
|
|||
Total Marsh
|
$
|
5,795
|
|
|
$
|
5,073
|
|
|
14
|
%
|
|
$
|
5,684
|
|
|
2
|
%
|
|
(2
|
)%
|
|
—
|
|
|
4
|
%
|
Mercer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Wealth
|
1,748
|
|
|
1,642
|
|
|
6
|
%
|
|
1,776
|
|
|
(2
|
)%
|
|
(4
|
)%
|
|
3
|
%
|
|
(1
|
)%
|
|||
Health
|
1,341
|
|
|
1,286
|
|
|
4
|
%
|
|
1,322
|
|
|
1
|
%
|
|
(2
|
)%
|
|
(1
|
)%
|
|
4
|
%
|
|||
Career
|
606
|
|
|
576
|
|
|
5
|
%
|
|
579
|
|
|
5
|
%
|
|
(3
|
)%
|
|
3
|
%
|
|
5
|
%
|
|||
Total Mercer
|
$
|
3,695
|
|
|
$
|
3,504
|
|
|
5
|
%
|
|
$
|
3,677
|
|
|
—
|
|
|
(3
|
)%
|
|
1
|
%
|
|
2
|
%
|
* Components of revenue change may not add due to rounding.
|
For the Three and Nine Months Ended September 30,
|
Three Months
|
|
Nine Months
|
|||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
Revenue
|
$
|
2,206
|
|
|
$
|
1,863
|
|
|
$
|
7,203
|
|
$
|
6,303
|
|
Compensation and Benefits
|
1,373
|
|
|
1,103
|
|
|
4,012
|
|
3,416
|
|
||||
Other Operating Expenses
|
615
|
|
|
467
|
|
|
1,723
|
|
1,406
|
|
||||
Expense
|
1,988
|
|
|
1,570
|
|
|
5,735
|
|
4,822
|
|
||||
Operating Income
|
$
|
218
|
|
|
$
|
293
|
|
|
$
|
1,468
|
|
$
|
1,481
|
|
Operating Income Margin
|
9.9
|
%
|
|
15.7
|
%
|
|
20.4
|
%
|
23.5
|
%
|
For the Three and Nine Months Ended September 30,
|
Three Months
|
|
Nine Months
|
|||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
Revenue
|
$
|
1,785
|
|
|
$
|
1,656
|
|
|
$
|
5,258
|
|
$
|
4,974
|
|
Compensation and Benefits
|
967
|
|
|
895
|
|
|
2,932
|
|
2,753
|
|
||||
Other Operating Expenses
|
501
|
|
|
470
|
|
|
1,452
|
|
1,416
|
|
||||
Expense
|
1,468
|
|
|
1,365
|
|
|
4,384
|
|
4,169
|
|
||||
Operating Income
|
$
|
317
|
|
|
$
|
291
|
|
|
$
|
874
|
|
$
|
805
|
|
Operating Income Margin
|
17.7
|
%
|
|
17.6
|
%
|
|
16.6
|
%
|
16.2
|
%
|
|
(In millions)
|
Payment due by Period
|
||||||||||||||||||
Contractual Obligations
|
Total
|
|
|
Within
1 Year
|
|
|
1-3 Years
|
|
|
4-5 Years
|
|
|
After
5 Years
|
|
|||||
Commercial paper
|
$
|
325
|
|
|
$
|
325
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Term loan facility
|
300
|
|
|
300
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Short-term debt
|
514
|
|
|
514
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Long-term debt
|
11,500
|
|
|
—
|
|
|
2,034
|
|
|
2,233
|
|
|
7,233
|
|
|||||
Interest on long-term debt
|
5,590
|
|
|
456
|
|
|
822
|
|
|
705
|
|
|
3,607
|
|
|||||
Net operating leases
|
2,634
|
|
|
411
|
|
|
693
|
|
|
535
|
|
|
995
|
|
|||||
Service agreements
|
118
|
|
|
75
|
|
|
30
|
|
|
13
|
|
|
—
|
|
|||||
Other long-term obligations
|
418
|
|
|
184
|
|
|
224
|
|
|
5
|
|
|
5
|
|
|||||
Total
|
$
|
21,399
|
|
|
$
|
2,265
|
|
|
$
|
3,803
|
|
|
$
|
3,491
|
|
|
$
|
11,840
|
|
(In millions)
|
Three Months Ended
September 30, 2018 |
|
Nine Months Ended
September 30, 2018 |
||||
MMC As Previously Reported
|
|
|
|
||||
Risk & Insurance Services
|
|
|
|
||||
Marsh
|
$
|
1,630
|
|
|
$
|
5,073
|
|
Guy Carpenter
|
215
|
|
|
1,184
|
|
||
Subtotal
|
1,845
|
|
|
6,257
|
|
||
Fiduciary Interest Income
|
18
|
|
|
46
|
|
||
Total Risk & Insurance Services
|
1,863
|
|
|
6,303
|
|
||
Consulting
|
|
|
|
||||
Mercer
|
1,175
|
|
|
3,504
|
|
||
Oliver Wyman Group
|
481
|
|
|
1,470
|
|
||
Total Consulting
|
1,656
|
|
|
4,974
|
|
||
Corporate Eliminations
|
(15
|
)
|
|
(39
|
)
|
||
Total Revenue
|
$
|
3,504
|
|
|
$
|
11,238
|
|
JLT 2018
|
|
|
|
||||
Specialty (Marsh)
|
$
|
259
|
|
|
$
|
611
|
|
Reinsurance (Guy Carpenter)
|
33
|
|
|
108
|
|
||
Employee Benefits (Mercer)
|
86
|
|
|
173
|
|
||
Subtotal
|
378
|
|
|
892
|
|
||
Fiduciary Interest Income
|
5
|
|
|
8
|
|
||
Total Revenue
|
$
|
383
|
|
|
$
|
900
|
|
2018 Including JLT
|
|
|
|
||||
Marsh
|
$
|
1,889
|
|
|
$
|
5,684
|
|
Guy Carpenter
|
248
|
|
|
1,292
|
|
||
Subtotal
|
2,137
|
|
|
6,976
|
|
||
Fiduciary Interest Income
|
23
|
|
|
54
|
|
||
Total Risk & Insurance Services
|
2,160
|
|
|
7,030
|
|
||
Consulting
|
|
|
|
||||
Mercer
|
1,261
|
|
|
3,677
|
|
||
Oliver Wyman Group
|
481
|
|
|
1,470
|
|
||
Total Consulting
|
1,742
|
|
|
5,147
|
|
||
Corporate Eliminations
|
(15
|
)
|
|
(39
|
)
|
||
Total Revenue Including JLT
|
$
|
3,887
|
|
|
$
|
12,138
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
(In millions)
|
September 30, 2019
|
||
Cash and cash equivalents invested in money market funds, certificates of deposit and time deposits
|
$
|
1,213
|
|
Fiduciary cash and investments
|
$
|
7,547
|
|
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
|
|
||
July 1-31, 2019
|
406,805
|
|
|
$
|
101.7974
|
|
|
406,805
|
|
|
$
|
724,341,285
|
|
August 1-31, 2019
|
1,128,593
|
|
|
$
|
97.6694
|
|
|
1,128,593
|
|
|
$
|
614,112,215
|
|
September 1-30, 2019
|
484,475
|
|
|
$
|
99.8175
|
|
|
484,475
|
|
|
$
|
565,753,093
|
|
Total
|
2,019,873
|
|
|
$
|
99.0160
|
|
|
2,019,873
|
|
|
$
|
565,753,093
|
|
Date:
|
October 30, 2019
|
/s/ Mark C. McGivney
|
|
|
|
Mark C. McGivney
|
|
|
|
Chief Financial Officer
|
|
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Date:
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October 30, 2019
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/s/ Stacy M. Mills
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Stacy M. Mills
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Vice President & Controller
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(Chief Accounting Officer)
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Exhibit No.
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Exhibit Name
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101.INS
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XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
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101.SCH
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XBRL Taxonomy Extension Schema
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase
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101.LAB
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XBRL Taxonomy Extension Label Linkbase
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase
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Steven A. Mills
Chairman of the Compensation Committee of the Board of Directors
Marsh & McLennan Companies, Inc.
1166 Avenue of the Americas
New York, New York 10036
www.mmc.com
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Board or Committee Memberships
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• International Advisory Board of BritishAmerican Business
• Board of Trustees of The Institutes
• Board of Trustees of Ohio Wesleyan University
• Federal Advisory Committee on Insurance
• Partnership for New York City
• St. Georges Society of New York
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Annual Base Salary
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$1,500,000
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Annual Target Bonus Opportunity
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Bonus awards are discretionary. Target bonus of $3,750,000. Actual bonus may range from 0% - 200% of target, based on achievement of individual performance objectives, and/or Marsh & McLennan Companies’ performance as Marsh & McLennan Companies may establish from time to time.
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Annual Target Long-Term Incentive Opportunity
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Long-term incentive awards are discretionary. Target award of $11,000,000 (based on grant date fair value).
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Other Benefits
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• You will have access to a car and driver for business purposes and for work/home travel purposes.
• You will have access to corporate aircraft for personal travel, up to $130,000 in aggregate incremental cost each calendar year, commencing with the 2017 calendar year, as calculated by the Company for disclosure purposes for the Summary Compensation Table of the Company’s Proxy Statement; provided that this amount and calculation methodology will be reviewed from time to time and subject to adjustment to reflect market trends. The Company currently calculates incremental cost by adding the incremental variable costs associated with personal flights on the aircraft (including hourly charges, taxes, passenger fees, international fees and catering).
If the imputed income attributable to these benefits is taxable to you, then the taxes associated with this taxable income will not be reimbursed or paid by the Company.
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Date:
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October 30, 2019
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/s/ Daniel S. Glaser
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Daniel S. Glaser
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President and Chief Executive Officer
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Date:
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October 30, 2019
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/s/ Mark C. McGivney
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Mark C. McGivney
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Chief Financial Officer
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1.
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the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and
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2.
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Marsh & McLennan Companies, Inc.
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Date:
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October 30, 2019
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/s/ Daniel S. Glaser
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Daniel S. Glaser
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President and Chief Executive Officer
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Date:
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October 30, 2019
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/s/ Mark C. McGivney
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Mark C. McGivney
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Chief Financial Officer
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