Fourth Quarter GAAP EPS of $.15 Compared with $.16 in Prior Year; Fourth Quarter Adjusted EPS of $.37 Compared with $.24 in Prior Year
PDF of Press Release with Financial Information
NEW YORK, Feb 11, 2009 (BUSINESS WIRE) -- Marsh & McLennan Companies, Inc. (MMC) today reported financial results
for the fourth quarter and year ended December 31, 2008.
In the quarter, consolidated revenue was $2.7 billion, a decline of 9
percent from the fourth quarter of 2007, or 3 percent on an underlying
basis. Underlying revenue measures the change in revenue before the
impact of acquisitions and dispositions, using consistent currency
exchange rates.
In the fourth quarter of 2008, MMC's net income was $80 million, or $.15
per share, compared with net income of $85 million, or $.16 per share,
in 2007. Earnings per share on an adjusted basis, as presented in the
attached supplemental schedules, increased 54 percent to $.37, compared
with $.24 in 2007.
For 2008, consolidated revenue was $11.6 billion, an increase of 4
percent from $11.2 billion in 2007, or 2 percent on an underlying basis.
MMC's results for 2008 include the previously reported non-cash goodwill
impairment charge of $540 million in the Risk Consulting and Technology
segment, which contributed to a net loss of $73 million, or $.14 per
share. For 2007, net income was $2.5 billion, or $4.53 per share,
reflecting MMC's gain of $1.9 billion, net of tax, on the divestiture of
Putnam Investments in August 2007, included in discontinued operations.
For 2008, adjusted earnings per share increased 9 percent to $1.45,
compared with $1.33 in 2007.
Brian Duperreault, president and chief executive officer of MMC,
said: "I am pleased with the successful execution of the goals we set
for MMC in 2008. Improved performance at Marsh was our highest priority.
The substantial rise in Marsh's profitability along with increased new
business production and improved client revenue retention were
significant achievements. The work at Marsh continues and its leadership
is implementing operational improvements that should contribute to
continued growth and profitability. Guy Carpenter is being run more
effectively on a global basis. Its new leadership has successfully
implemented cost containment and restructuring initiatives that have
resulted in improved profitability in challenging reinsurance market
conditions.
"Mercer and Oliver Wyman are being managed well in difficult times.
Costs are being controlled closely while high levels of service are
maintained. Both companies have strong global franchises, resources and
capabilities that are highly valued and sought out by clients.
"For Kroll, 2008 was a year of transition. We redefined Kroll, put new
leadership in place and assessed how its businesses fit into MMC's
long-term business strategy. The Corporate Advisory and Restructuring
business was divested, and Kroll is continuing to streamline its
operations to improve profitability."
Risk and Insurance Services
Marsh's revenue in the fourth quarter of $1.1 billion decreased 5
percent from last year, but increased 3 percent on an underlying basis.
Underlying revenue increased 3 percent in the United States and Canada
and 2 percent in international operations. Marsh had another quarter of
strong new business production. Client revenue retention increased in
the quarter, continuing the trend seen throughout the year. Marsh's
fourth quarter results were achieved in an environment of price
competition in the global commercial property and casualty insurance
marketplace.
In the fourth quarter, reinsurance premium rates declined globally
across most lines. Guy Carpenter's fourth quarter revenue declined 6
percent to $146 million, or 2 percent on an underlying basis.
Restructuring actions and continuing cost discipline led to a
significant improvement in Guy Carpenter's profitability in the fourth
quarter, compared with the same period in 2007.
Risk and Insurance Services segment revenue in the fourth quarter of
2008 totaled $1.3 billion, a decline of 6 percent from the fourth
quarter of 2007, but an increase of 1 percent on an underlying basis.
Operating income in the fourth quarter was $104 million. Adjusted
operating income, which excludes noteworthy items, more than doubled to
$189 million from $92 million last year, due to improved operating
performance at both Marsh and Guy Carpenter. For 2008, segment revenue
increased 1 percent to $5.5 billion, and was essentially unchanged on an
underlying basis. Operating income increased 35 percent to $460 million,
compared with $342 million in 2007. Adjusted operating income increased
58 percent to $729 million, compared with $462 million in 2007.
Fiduciary interest income, now segregated from Marsh's and Guy
Carpenter's revenue for presentation purposes, was $25 million in the
quarter, compared with $40 million last year. For the year, fiduciary
income was $139 million, compared with $177 million last year.
Consulting
Mercer's revenue declined 8 percent to $807 million in the fourth
quarter, and was unchanged on an underlying basis. Mercer's consulting
operations produced revenue of $589 million, an increase of 1 percent on
an underlying basis from the prior year's fourth quarter; outsourcing,
with revenue of $149 million, declined 6 percent; and investment
consulting and management, with revenue of $69 million, grew 7 percent.
For 2008, Mercer's revenue grew 8 percent, or 7 percent on an underlying
basis.
Primarily due to ongoing adverse global economic and financial market
conditions, Oliver Wyman's revenue declined 11 percent to $392 million
in the fourth quarter, or 10 percent on an underlying basis. For 2008,
Oliver Wyman's revenue increased 2 percent, but declined 2 percent on an
underlying basis.
Consulting segment revenue totaled $1.2 billion in the fourth quarter of
2008, a decline of 9 percent, or 3 percent on an underlying basis.
Operating income declined to $82 million. Adjusted operating income was
$121 million, compared with $162 million in 2007. For 2008, segment
revenue totaled $5.2 billion, an increase of 6 percent, or 4 percent on
an underlying basis. Operating income was $555 million in 2008, compared
with $606 million in the prior year. Adjusted operating income was $595
million, compared with $614 million in 2007.
Risk Consulting and Technology
Kroll's revenue of $188 million in the fourth quarter declined 11
percent from the year-ago quarter, or 8 percent on an underlying basis.
Underlying revenue in the risk mitigation and response business
increased 4 percent; litigation support and data recovery declined 6
percent; and background screening declined 19 percent.
Corporate Advisory and Restructuring was divested in the fourth quarter.
As a result, revenue declined to $13 million and a loss was recorded in
the quarter.
Risk Consulting and Technology segment revenue totaled $201 million in
the fourth quarter of 2008, a decline of 19 percent, or 16 percent on an
underlying basis. Due to the loss on the disposal of the Corporate
Advisory and Restructuring businesses, the segment had a loss of $27
million, compared with operating income of $15 million in the prior
year's quarter. For 2008, segment revenue grew 1 percent to $993
million. Adjusted operating income declined 10 percent to $88 million.
Other Items
MMC had investment income in the fourth quarter of 2008 of $19 million,
primarily due to mark-to-market gains in private equity investments. For
the year, investment losses were $12 million, compared with investment
income of $173 million in 2007. Corporate interest income was $8 million
in the fourth quarter, compared with $31 million in the prior year,
primarily due to lower interest rates. Additionally, last year there
were higher invested funds prior to the December tax payment relating to
the sale of Putnam.
For the quarter, the tax rate benefited from a change in the geographic
mix of MMC's earnings; a higher relative tax benefit associated with
restructuring and related charges; and the favorable outcome of tax
audits. The full year tax rate is impacted significantly by the
nondeductibility of the goodwill impairment charge.
MMC's liquidity remains strong. At the end of 2008, cash and cash
equivalents was $1.7 billion, an increase of $200 million during the
fourth quarter. Net debt, which is total debt less cash and cash
equivalents, was $1.9 billion at the end of 2008.
Conference Call
A conference call to discuss fourth quarter 2008 results will be held
today at 8:30 a.m. Eastern Time. To participate in the teleconference,
please dial 877 741 4242. Callers from outside the United States should
dial 719 325 4762. The access code for both numbers is 9859014. The live
audio webcast may be accessed at www.mmc.com.
A replay of the webcast will be available approximately two hours after
the event at the same web address.
MMC is a global professional services firm providing advice and
solutions in the areas of risk, strategy and human capital. It is the
parent company of a number of the world's leading risk experts and
specialty consultants, including Marsh, the insurance broker and risk
advisor; Guy Carpenter, the risk and reinsurance specialist; Mercer, the
provider of HR and related financial advice and services; Oliver Wyman,
the management consultancy; and Kroll, the risk consulting firm. With
more than 54,000 employees worldwide and annual revenue exceeding $11
billion, MMC provides analysis, advice and transactional capabilities to
clients in more than 100 countries. Its stock (ticker symbol: MMC) is
listed on the New York, Chicago and London stock exchanges. MMC's
website address is www.mmc.com.
This press release contains "forward-looking statements," as defined in
the Private Securities Litigation Reform Act of 1995. These statements,
which express management's current views concerning future events or
results, use words like "anticipate," "assume," "believe," "continue,"
"estimate," "expect," "intend," "plan," "project" and similar terms, and
future or conditional tense verbs like "could," "may," "might,"
"should," "will" and "would." For example, we may use forward-looking
statements when addressing topics such as: market and industry
conditions, including competitive and pricing trends; changes in our
business strategies and methods of generating revenue; the development
and performance of our services and products; changes in the composition
or level of MMC's revenues; our cost structure and the outcome of
cost-saving or restructuring initiatives; the outcome of contingencies;
dividend policy; the expected impact of acquisitions and dispositions;
pension obligations; cash flow and liquidity; future actions by
regulators; and the impact of changes in accounting rules.
Forward-looking statements are subject to inherent risks and
uncertainties. Factors that could cause actual results to differ
materially from those expressed or implied in our forward-looking
statements include:
-
the impact of current financial market conditions on our results of
operations and financial condition;
-
the potential impact of legislative, regulatory, accounting and other
initiatives which may be taken in response to the current financial
crisis;
-
our ability to meet our financing needs by generating cash from
operations and accessing external financing sources, including the
impact of current economic conditions on our cost of financing or
ability to borrow;
-
the potential impact of rating agency actions on our cost of financing
and ability to borrow, as well as on our operating costs and
competitive position;
-
the impact on our net income caused by fluctuations in foreign
exchange rates;
-
the potential impact of changes in interest rates and increased
counterparty risk in the current economic environment;
-
changes in the funded status of our global defined benefit pension
plans and the impact of any increased pension funding resulting from
those changes;
-
the impact on risk and insurance services commission revenues of
changes in the availability of, and the premiums insurance carriers
charge for, insurance and reinsurance products, including the impact
on premium rates and market capacity attributable to catastrophic
events;
-
the extent to which we retain existing clients and attract new
business, and our ability to incentivize and retain key employees;
-
the challenges we face in achieving profitable revenue growth and
improving operating margins at Marsh;
-
the impact on our consulting segment of pricing trends, utilization
rates, the general economic environment and legislative changes
affecting client demand;
-
the impact of competition, including with respect to pricing, the
emergence of new competitors, and the fact that many of Marsh's
competitors are not constrained in their ability to receive contingent
commissions;
-
our exposure to potential liabilities arising from errors and
omissions claims against us, including claims of professional
negligence in providing actuarial services, such as those alleged by
the Alaska Retirement Management Board and Milwaukee County against
Mercer;
-
the ultimate economic impact on MMC of contingencies described in the
notes to our financial statements, including the risk of a significant
adverse outcome in the shareholder lawsuit against MMC concerning the
late 2004 decline in MMC's share price;
-
the potential impact of consolidation in the industries we serve,
particularly in the reinsurance industry;
-
our ability to successfully obtain payment from our clients of the
amounts they owe us for work performed;
-
the impact of, and potential challenges in complying with, legislation
and regulation in the jurisdictions in which we operate, particularly
given the global scope of our businesses and the possibility of
conflicting regulatory requirements across the jurisdictions in which
we do business;
-
our exposure to potential criminal sanctions or civil remedies if we
fail to comply with foreign and U.S. laws and regulations that are
applicable to our international operations, including import and
export requirements, U.S. laws such as the Foreign Corrupt Practices
Act, and local laws prohibiting corrupt payments to government
officials;
-
our ability to make strategic acquisitions and dispositions and to
integrate, and realize expected synergies, savings or strategic
benefits from, the businesses we acquire;
-
our ability to successfully recover should we experience a disaster or
other business continuity problem;
-
changes in applicable tax or accounting requirements; and
-
potential income statement effects from the application of FIN 48
("Accounting for Uncertainty in Income Taxes") and SFAS 142 ("Goodwill
and Other Intangible Assets"), including the effect of any subsequent
adjustments to the estimates MMC uses in applying these accounting
standards.
The factors identified above are not exhaustive. MMC and its
subsidiaries operate in a dynamic business environment in which new
risks may emerge frequently. Accordingly, MMC cautions readers not to
place undue reliance on its forward-looking statements, which speak only
as of the dates on which they are made. MMC undertakes no obligation to
update or revise any forward-looking statement to reflect events or
circumstances arising after the date on which it is made. Further
information concerning MMC and its businesses, including information
about factors that could materially affect our results of operations and
financial condition, is contained in MMC's filings with the Securities
and Exchange Commission, including the "Risk Factors" section of MMC's
most recently filed Annual Report on Form 10-K.
Marsh & McLennan Companies, Inc.
Consolidated Statements of Income
(In millions, except per share figures)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
|
|
|
|
|
|
|
Revenue
|
$2,662
|
|
|
$2,915
|
|
|
$11,587
|
|
|
$11,177
|
|
|
|
|
|
|
|
|
|
Expense:
|
|
|
|
|
|
|
|
Compensation and Benefits
|
1,683
|
|
|
1,849
|
|
|
7,207
|
|
|
6,958
|
|
Other Operating Expenses
|
880
|
|
|
911
|
|
|
3,577
|
|
|
3,373
|
|
Goodwill Impairment Charge
|
-
|
|
|
-
|
|
|
540
|
|
|
-
|
|
Total Expense
|
2,563
|
|
|
2,760
|
|
|
11,324
|
|
|
10,331
|
|
|
|
|
|
|
|
|
|
Operating Income
|
99
|
|
|
155
|
|
|
263
|
|
|
846
|
|
|
|
|
|
|
|
|
|
Interest Income
|
8
|
|
|
31
|
|
|
48
|
|
|
95
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
(55
|
)
|
|
(56
|
)
|
|
(220
|
)
|
|
(267
|
)
|
|
|
|
|
|
|
|
|
Investment Income (Loss)
|
19
|
|
|
10
|
|
|
(12
|
)
|
|
173
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes and Minority Interest Expense
|
71
|
|
|
140
|
|
|
79
|
|
|
847
|
|
|
|
|
|
|
|
|
|
Income Taxes
|
(5
|
)
|
|
44
|
|
|
137
|
|
|
295
|
|
|
|
|
|
|
|
|
|
Minority Interest Expense, Net of Tax
|
3
|
|
|
6
|
|
|
11
|
|
|
14
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Continuing Operations
|
73
|
|
|
90
|
|
|
(69
|
)
|
|
538
|
|
|
|
|
|
|
|
|
|
Discontinued Operations, Net of Tax
|
7
|
|
|
(5
|
)
|
|
(4
|
)
|
|
1,937
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
$ 80
|
|
|
$ 85
|
|
|
$ (73
|
)
|
|
$2,475
|
|
|
|
|
|
|
|
|
|
Basic Net Income (Loss) Per Share
- Continuing Operations
|
$ 0.14
|
|
|
$0.17
|
|
|
$(0.13
|
)
|
|
$1.00
|
|
i Net Income (Loss)
|
$ 0.16
|
|
|
$0.17
|
|
|
$(0.14
|
)
|
|
$4.60
|
|
|
|
|
|
|
|
|
|
Diluted Net Income (Loss) Per Share
- Continuing Operations
|
$ 0.14
|
|
|
$0.17
|
|
|
$(0.13
|
)
|
|
$0.99
|
|
- Net Income (Loss)
|
$ 0.15
|
|
|
$0.16
|
|
|
$(0.14
|
)
|
|
$4.53
|
|
|
|
|
|
|
|
|
|
Average Number of Shares Outstanding - Basic
|
514
|
|
|
520
|
|
|
514
|
|
|
539
|
|
i Diluted
|
521
|
|
|
525
|
|
|
514
|
|
|
546
|
|
Shares Outstanding at 12/31
|
514
|
|
|
520
|
|
|
514
|
|
|
520
|
|
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Three Months Ended
(Millions) (Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Components of Revenue Change
|
|
% Change
|
|
|
|
Acquisitions/
|
|
|
December 31,
|
|
GAAP
|
|
Currency
|
|
Dispositions
|
|
Underlying
|
|
2008
|
|
2007
|
|
Revenue
|
|
Impact
|
|
Impact
|
|
Revenue
|
Risk and Insurance Services
|
|
|
|
|
|
|
|
|
|
|
|
Marsh
|
$1,105
|
|
|
$1,166
|
|
|
(5
|
)%
|
|
(8
|
)%
|
|
-
|
|
|
3
|
%
|
Guy Carpenter
|
146
|
|
|
156
|
|
|
(6
|
)%
|
|
(4
|
)%
|
|
-
|
|
|
(2
|
)%
|
Fiduciary Interest Income
|
25
|
|
|
40
|
|
|
(39
|
)%
|
|
(8
|
)%
|
|
-
|
|
|
(31
|
)%
|
Total Risk and Insurance Services
|
1,276
|
|
|
1,362
|
|
|
(6
|
)%
|
|
(7
|
)%
|
|
-
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
|
|
|
|
|
|
|
|
|
|
Mercer
|
807
|
|
|
882
|
|
|
(8
|
)%
|
|
(10
|
)%
|
|
2
|
%
|
|
-
|
|
Oliver Wyman Group
|
392
|
|
|
437
|
|
|
(11
|
)%
|
|
(5
|
)%
|
|
4
|
%
|
|
(10
|
)%
|
Total Consulting
|
1,199
|
|
|
1,319
|
|
|
(9
|
)%
|
|
(8
|
)%
|
|
2
|
%
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Consulting & Technology
|
|
|
|
|
|
|
|
|
|
|
|
Kroll
|
188
|
|
|
211
|
|
|
(11
|
)%
|
|
(3
|
)%
|
|
-
|
|
|
(8
|
)%
|
Corporate Advisory and Restructuring
|
13
|
|
|
36
|
|
|
(63
|
)%
|
|
(4
|
)%
|
|
-
|
|
|
(59
|
)%
|
Total Risk Consulting & Technology
|
201
|
|
|
247
|
|
|
(19
|
)%
|
|
(3
|
)%
|
|
-
|
|
|
(16
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Segments
|
2,676
|
|
|
2,928
|
|
|
(9
|
)%
|
|
(7
|
)%
|
|
1
|
%
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Eliminations
|
(14
|
)
|
|
(13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue
|
$2,662
|
|
|
$2,915
|
|
|
(9
|
)%
|
|
(7
|
)%
|
|
1
|
%
|
|
(3
|
)%
|
Revenue Details
The following table provides more detailed revenue information for
certain of the components presented above:
|
Three Months Ended
|
|
|
|
Components of Revenue Change
|
|
% Change
|
|
|
|
Acquisitions/
|
|
|
December 31,
|
|
GAAP
|
|
Currency
|
|
Dispositions
|
|
Underlying
|
|
2008
|
|
2007
|
|
Revenue
|
|
Impact
|
|
Impact
|
|
Revenue
|
Marsh:
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
$ 358
|
|
$ 411
|
|
(13
|
)%
|
|
(13
|
)%
|
|
-
|
|
|
-
|
|
Asia Pacific
|
96
|
|
106
|
|
(9
|
)%
|
|
(15
|
)%
|
|
-
|
|
|
6
|
%
|
Latin America
|
80
|
|
81
|
|
(2
|
)%
|
|
(9
|
)%
|
|
(5
|
)%
|
|
12
|
%
|
Total International
|
534
|
|
598
|
|
(11
|
)%
|
|
(12
|
)%
|
|
(1
|
)%
|
|
2
|
%
|
U.S. and Canada
|
571
|
|
568
|
|
1
|
%
|
|
(3
|
)%
|
|
1
|
%
|
|
3
|
%
|
Total Marsh
|
$1,105
|
|
$1,166
|
|
(5
|
)%
|
|
(8
|
)%
|
|
-
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Mercer:
|
|
|
|
|
|
|
|
|
|
|
|
Retirement
|
$ 256
|
|
$ 279
|
|
(8
|
)%
|
|
(11
|
)%
|
|
4
|
%
|
|
(1
|
)%
|
Health and Benefits
|
198
|
|
204
|
|
(3
|
)%
|
|
(6
|
)%
|
|
-
|
|
|
3
|
%
|
Other Consulting Lines
|
135
|
|
138
|
|
(3
|
)%
|
|
(6
|
)%
|
|
-
|
|
|
3
|
%
|
Total Mercer Consulting
|
589
|
|
621
|
|
(5
|
)%
|
|
(8
|
)%
|
|
2
|
%
|
|
1
|
%
|
Outsourcing
|
149
|
|
183
|
|
(18
|
)%
|
|
(12
|
)%
|
|
-
|
|
|
(6
|
)%
|
Investment Consulting & Management
|
69
|
|
78
|
|
(10
|
)%
|
|
(17
|
)%
|
|
-
|
|
|
7
|
%
|
Total Mercer
|
$ 807
|
|
$ 882
|
|
(8
|
)%
|
|
(10
|
)%
|
|
2
|
%
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kroll:
|
|
|
|
|
|
|
|
|
|
|
|
Litigation Support and Data Recovery
|
$ 69
|
|
$ 76
|
|
(9
|
)%
|
|
(3
|
)%
|
|
-
|
|
|
(6
|
)%
|
Background Screening
|
57
|
|
73
|
|
(21
|
)%
|
|
(2
|
)%
|
|
-
|
|
|
(19
|
)%
|
Risk Mitigation and Response
|
62
|
|
62
|
|
-
|
|
|
(4
|
)%
|
|
-
|
|
|
4
|
%
|
Total Kroll
|
$ 188
|
|
$ 211
|
|
(11
|
)%
|
|
(3
|
)%
|
|
-
|
|
|
(8
|
)%
|
Notes
|
|
Underlying revenue measures the change in revenue, before the impact
of acquisitions and dispositions, using consistent currency exchange
rates.
|
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Twelve Months Ended
(Millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
Components of Revenue Change
|
|
|
% Change
|
|
|
|
Acquisitions/
|
|
|
|
|
December 31,
|
|
GAAP
|
|
Currency
|
|
Dispositions
|
|
Underlying
|
|
2008
|
|
2007
|
|
Revenue
|
|
Impact
|
|
Impact
|
|
Revenue
|
Risk and Insurance Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marsh
|
$4,524
|
|
|
$4,369
|
|
|
4
|
%*
|
|
1
|
%
|
|
-
|
|
|
2
|
%*
|
Guy Carpenter
|
803
|
|
|
854
|
|
|
(6
|
)%
|
|
1
|
%
|
|
-
|
|
|
(7
|
)%
|
Fiduciary Interest Income
|
139
|
|
|
177
|
|
|
(22
|
)%
|
|
1
|
%
|
|
-
|
|
|
(23
|
)%
|
Total Risk and Insurance Services
|
5,466
|
|
|
5,400
|
|
|
1
|
%
|
|
1
|
%
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mercer
|
3,642
|
|
|
3,368
|
|
|
8
|
%
|
|
-
|
|
|
1
|
%
|
|
7
|
%
|
Oliver Wyman Group
|
1,554
|
|
|
1,516
|
|
|
2
|
%
|
|
1
|
%
|
|
3
|
%
|
|
(2
|
)%
|
Total Consulting
|
5,196
|
|
|
4,884
|
|
|
6
|
%
|
|
-
|
|
|
2
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Consulting & Technology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kroll
|
866
|
|
|
815
|
|
|
6
|
%
|
|
-
|
|
|
4
|
%
|
|
2
|
%
|
Corporate Advisory and Restructuring
|
127
|
|
|
172
|
|
|
(26
|
)%
|
|
(1
|
)%
|
|
-
|
|
|
(25
|
)%
|
Total Risk Consulting & Technology
|
993
|
|
|
987
|
|
|
1
|
%
|
|
-
|
|
|
4
|
%
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Segments
|
11,655
|
|
|
11,271
|
|
|
3
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Eliminations
|
(68
|
)
|
|
(94
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue
|
$11,587
|
|
|
$11,177
|
|
|
4
|
%
|
|
1
|
%
|
|
1
|
%
|
|
2
|
%
|
Revenue Details
The following table provides more detailed revenue information for
certain of the components presented above:
|
Twelve Months Ended
|
|
|
|
Components of Revenue Change
|
|
% Change
|
|
|
|
Acquisitions/
|
|
|
|
December 31,
|
|
GAAP
|
|
Currency
|
|
Dispositions
|
|
Underlying
|
|
2008
|
|
2007
|
|
Revenue
|
|
Impact
|
|
Impact
|
|
Revenue
|
Marsh:
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
$1,706
|
|
$1,618
|
|
5
|
%
|
|
2
|
%
|
|
-
|
|
|
3
|
%
|
Asia Pacific
|
412
|
|
374
|
|
10
|
%
|
|
2
|
%
|
|
-
|
|
|
8
|
%
|
Latin America
|
252
|
|
239
|
|
6
|
%
|
|
5
|
%
|
|
(5
|
)%
|
|
6
|
%
|
Total International
|
2,370
|
|
2,231
|
|
6
|
%
|
|
2
|
%
|
|
-
|
|
|
4
|
%
|
U.S. and Canada
|
2,154
|
|
2,138
|
|
1
|
%
|
|
-
|
|
|
-
|
|
|
1
|
%
|
Total Marsh
|
$4,524
|
|
$4,369
|
|
4%*
|
|
1
|
%
|
|
-
|
|
|
2%*
|
|
|
|
|
|
|
|
|
|
|
|
|
Mercer:
|
|
|
|
|
|
|
|
|
|
|
|
Retirement
|
$1,178
|
|
$1,079
|
|
9
|
%
|
|
-
|
|
|
4
|
%
|
|
5
|
%
|
Health and Benefits
|
898
|
|
827
|
|
9
|
%
|
|
1
|
%
|
|
-
|
|
|
8
|
%
|
Other Consulting Lines
|
555
|
|
509
|
|
9
|
%
|
|
2
|
%
|
|
(1
|
)%
|
|
8
|
%
|
Total Mercer Consulting
|
2,631
|
|
2,415
|
|
9
|
%
|
|
1
|
%
|
|
1
|
%
|
|
7
|
%
|
Outsourcing
|
702
|
|
682
|
|
3
|
%
|
|
(1
|
)%
|
|
-
|
|
|
4
|
%
|
Investment Consulting & Management
|
309
|
|
271
|
|
14
|
%
|
|
(2
|
)%
|
|
-
|
|
|
16
|
%
|
Total Mercer
|
$3,642
|
|
$3,368
|
|
8
|
%
|
|
-
|
|
|
1
|
%
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Kroll:
|
|
|
|
|
|
|
|
|
|
|
|
Litigation Support and Data Recovery
|
$ 326
|
|
$ 272
|
|
20
|
%
|
|
-
|
|
|
14
|
%
|
|
6
|
%
|
Background Screening
|
263
|
|
297
|
|
(11
|
)%
|
|
-
|
|
|
-
|
|
|
(11
|
)%
|
Risk Mitigation and Response
|
277
|
|
246
|
|
12
|
%
|
|
-
|
|
|
-
|
|
|
12
|
%
|
Total Kroll
|
$ 866
|
|
$ 815
|
|
6
|
%
|
|
-
|
|
|
4
|
%
|
|
2
|
%
|
Notes
|
|
* Marsh's GAAP revenue growth and underlying revenue growth were
3.6% and 2.4%, respectively.
|
Underlying revenue measures the change in revenue, before the impact
of acquisitions and dispositions, using consistent currency exchange
rates.
|
Marsh & McLennan Companies, Inc.
Non-GAAP Measures
Three Months Ended December 31
(Millions) (Unaudited)
|
|
MMC presents below certain additional financial measures that are
"non-GAAP measures," within the meaning of Regulation G under the
Securities Exchange Act of 1934. These measures are: adjusted
operating income; adjusted operating margin; and adjusted
income, net of tax.
|
|
MMC presents these non-GAAP measures to provide investors with
additional information to analyze the company's performance from
period to period. Management also uses these measures to assess
performance for incentive compensation purposes and to allocate
resources in managing MMC's businesses. However, investors should
not consider these non-GAAP measures in isolation from, or as a
substitute for, the financial information that MMC reports in
accordance with GAAP. MMC's non-GAAP measures reflect subjective
determinations by management, and may differ from similarly titled
non-GAAP measures presented by other companies.
|
|
Adjusted Operating Income and Adjusted Operating Margin
|
Adjusted operating income is calculated by excluding the
impact of certain noteworthy items from MMC's GAAP operating income.
The following tables identify these noteworthy items and reconcile
adjusted operating income to GAAP operating income, on a
consolidated and segment basis, for the three months ended December
31, 2008 and 2007. The following tables also present adjusted
operating margin, which is calculated by dividing adjusted
operating income by consolidated or segment GAAP revenue.
|
|
Risk & Insurance Services
|
|
Consulting
|
|
Risk
Consulting &
Technology
|
|
Corporate
|
|
Total
|
Three Months Ended December 31, 2008
|
|
|
|
|
|
|
|
|
|
Operating income
|
$104
|
|
|
$ 82
|
|
|
$ (27
|
)
|
|
$(60
|
)
|
|
$ 99
|
|
Add impact of noteworthy items:
|
|
|
|
|
|
|
|
|
|
Restructuring Charges (a)
|
64
|
|
|
39
|
|
|
10
|
|
|
|
18
|
|
(b)
|
|
131
|
|
Settlement, Legal and Regulatory (c)
|
13
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
13
|
|
Accelerated Amortization
|
8
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
8
|
|
Other
|
-
|
|
|
-
|
|
|
28
|
|
(d)
|
|
-
|
|
|
|
28
|
|
Operating income adjustments
|
85
|
|
|
39
|
|
|
38
|
|
|
|
18
|
|
|
|
180
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income
|
$189
|
|
|
$121
|
|
|
$ 11
|
|
|
|
$(42
|
)
|
|
$279
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
8.2
|
%
|
|
6.8
|
%
|
|
N/A
|
|
|
|
N/A
|
|
|
|
3.7
|
%
|
Adjusted operating margin
|
14.8
|
%
|
|
10.1
|
%
|
|
5.5
|
%
|
|
N/A
|
|
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2007
|
|
|
|
|
|
|
|
|
|
Operating income
|
$50
|
|
|
$161
|
|
|
$15
|
|
|
|
$(71
|
)
|
|
$155
|
|
Add impact of noteworthy items:
|
|
|
|
|
|
|
|
|
|
Restructuring Charges (a)
|
29
|
|
|
1
|
|
|
-
|
|
|
|
14
|
|
|
|
44
|
|
Settlement, Legal and Regulatory (c)
|
13
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
13
|
|
Accelerated Amortization
|
-
|
|
|
-
|
|
|
-
|
|
|
|
2
|
|
|
|
2
|
|
Operating income adjustments
|
42
|
|
|
1
|
|
|
-
|
|
|
|
16
|
|
|
|
59
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income
|
$ 92
|
|
|
$162
|
|
|
$15
|
|
|
|
$(55
|
)
|
|
$214
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
3.7
|
%
|
|
12.2
|
%
|
|
6.1
|
%
|
|
N/A
|
|
|
|
5.3
|
%
|
Adjusted operating margin
|
6.8
|
%
|
|
12.3
|
%
|
|
6.1
|
%
|
|
N/A
|
|
|
|
7.3
|
%
|
(a) Primarily includes severance from restructuring activities and
related charges, costs for future rent and other real estate costs,
and fees and consulting costs related to cost reduction activities.
Charges related to rent and other real estate costs totaled $33
million and $4 million for the three month periods ended December
31, 2008 and 2007, respectively.
|
|
(b) Represents estimated future rent and other real estate costs to
exit space in MMC's New York headquarters building, previously
vacated space in the U.K. and other locations.
|
|
(c) Reflects legal fees arising out of the civil complaint relating
to market service agreements and other issues filed against MMC and
Marsh by the New York State Attorney General in October 2004 and
settled in January 2005, including indemnification of former
employees for legal fees.
|
|
(d) Reflects the loss on the disposition of the U.K. Corporate
Advisory and Restructuring businesses to former management. The net
assets of the U.K. businesses were written off upon transfer to the
new owners. MMC will receive royalties on future revenue of the U.K.
businesses over the next four years. The royalties will be
recognized when earned under the terms of the contracts and
collectibility is reasonably assured. In addition, MMC holds a note
receivable related to the disposal of the U.S. business. If the note
is re-paid as scheduled, MMC will recognize a gain of $18 million on
the disposal of the U.S. business over the repayment period.
|
Marsh & McLennan Companies, Inc.
Non-GAAP Measures
Twelve Months Ended December 31
(Millions) (Unaudited)
|
|
MMC presents below certain additional financial measures that are
"non-GAAP measures," within the meaning of Regulation G under the
Securities Exchange Act of 1934. These measures are: adjusted
operating income; adjusted operating margin; and adjusted
income, net of tax.
|
|
MMC presents these non-GAAP measures to provide investors with
additional information to analyze the company's performance from
period to period. Management also uses these measures to assess
performance for incentive compensation purposes and to allocate
resources in managing MMC's businesses. However, investors should
not consider these non-GAAP measures in isolation from, or as a
substitute for, the financial information that MMC reports in
accordance with GAAP. MMC's non-GAAP measures reflect subjective
determinations by management, and may differ from similarly titled
non-GAAP measures presented by other companies.
|
|
Adjusted Operating Income and Adjusted Operating Margin
|
Adjusted operating income is calculated by excluding the
impact of certain noteworthy items from MMC's GAAP operating income.
The following tables identify these noteworthy items and reconcile
adjusted operating income to GAAP operating income, on a
consolidated and segment basis, for the twelve months ended December
31, 2008 and 2007. The following tables also present adjusted
operating margin, which is calculated by dividing adjusted
operating income by consolidated or segment GAAP revenue.
|
|
Risk & Insurance Services
|
|
Consulting
|
|
Risk
Consulting &
Technology
|
|
Corporate
|
|
Total
|
Twelve Months Ended December 31, 2008
|
|
|
|
|
|
|
|
|
|
Operating income
|
$460
|
|
|
$555
|
|
|
$(497
|
)
|
|
$(255
|
)
|
|
$ 263
|
|
Add impact of noteworthy items:
|
|
|
|
|
|
|
|
|
|
Restructuring Charges (a)
|
193
|
|
|
40
|
|
|
17
|
|
|
|
85
|
|
(b)
|
|
335
|
|
Settlement, Legal and Regulatory (c)
|
51
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
51
|
|
Goodwill Impairment Charge
|
-
|
|
|
-
|
|
|
540
|
|
|
|
-
|
|
|
|
540
|
|
Accelerated Amortization
|
22
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
22
|
|
Other
|
3
|
|
|
-
|
|
|
28
|
|
(e)
|
|
-
|
|
|
|
31
|
|
Operating income adjustments
|
269
|
|
|
40
|
|
|
585
|
|
|
|
85
|
|
|
|
979
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income
|
$729
|
|
|
$595
|
|
|
$ 88
|
|
|
|
$(170
|
)
|
|
$1,242
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
8.4
|
%
|
|
10.7
|
%
|
|
N/A
|
|
|
|
N/A
|
|
|
|
2.3
|
%
|
Adjusted operating margin
|
13.3
|
%
|
|
11.5
|
%
|
|
8.9
|
%
|
|
N/A
|
|
|
|
10.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2007
|
|
|
|
|
|
|
|
|
|
Operating income
|
$342
|
|
|
$606
|
|
|
$ 98
|
|
|
|
$(200
|
)
|
|
$ 846
|
|
Add (deduct) impact of noteworthy items:
|
|
|
|
|
|
|
|
|
|
Restructuring Charges (a)
|
60
|
|
|
2
|
|
|
-
|
|
|
|
36
|
|
|
|
98
|
|
Settlement, Legal and Regulatory (c)
|
51
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
51
|
|
Accelerated Amortization
|
9
|
|
|
6
|
|
|
-
|
|
|
|
6
|
|
|
|
21
|
|
Other (d)
|
-
|
|
|
-
|
|
|
-
|
|
|
|
(14
|
)
|
|
(14
|
)
|
Operating income adjustments
|
120
|
|
|
8
|
|
|
-
|
|
|
|
28
|
|
|
|
156
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income
|
$462
|
|
|
$614
|
|
|
$ 98
|
|
|
|
$(172
|
)
|
|
$1,002
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
6.3
|
%
|
|
12.4
|
%
|
|
9.9
|
%
|
|
N/A
|
|
|
|
7.6
|
%
|
Adjusted operating margin
|
8.6
|
%
|
|
12.6
|
%
|
|
9.9
|
%
|
|
N/A
|
|
|
|
9.0
|
%
|
(a) Primarily includes severance from restructuring activities and
related charges, costs for future rent and other real estate costs,
and fees and consulting costs related to cost reduction activities.
Charges related to rent and other real estate costs totaled $95
million and $10 million for the twelve months ended December 31,
2008 and 2007, respectively.
|
|
(b) Includes $62 million of estimated future rent and other real
estate costs to exit space in MMC's New York headquarters building
and adjustments to estimated costs related to previously vacated
space in the U.K. and other locations.
|
|
(c) Reflects legal fees arising out of the civil complaint relating
to market service agreements and other issues filed against MMC and
Marsh by the New York State Attorney General in October 2004 and
settled in January 2005, including indemnification of former
employees for legal fees.
|
|
(d) Represents an accrual adjustment related to the separation of
former MMC senior executives.
|
|
(e) Reflects the loss on the disposition of the U.K. Corporate
Advisory and Restructuring businesses to former management. The net
assets of the U.K. businesses were written off upon transfer to the
new owners. MMC will receive royalties on future revenue of the U.K.
businesses over the next four years. The royalties will be
recognized when earned under the terms of the contracts and
collectibility is reasonably assured. In addition, MMC holds a note
receivable related to the disposal of the U.S. business. If the note
is re-paid as scheduled, MMC will recognize a gain of $18 million on
the disposal of the U.S. business over the repayment period.
|
|
Noteworthy items exclude a credit of $10 million for a payment
received in the third quarter of 2008 from U.S. Investigations
Services Inc. in connection with its hiring of MMC's former CEO.
This amount was recorded in operating income as a reduction of
corporate expense. Noteworthy items also exclude a $33 million
charge in the third quarter of 2008 to increase professional
liability reserves recorded in risk and insurance services. These
items are therefore included in both operating income and adjusted
operating income.
|
Marsh & McLennan Companies, Inc.
Non-GAAP Measures
Three and Twelve Months Ended December 31
(Millions) (Unaudited)
|
|
Adjusted Income, net of tax
|
Adjusted income, net of tax is calculated as: (i) MMC's GAAP
income (loss) from continuing operations, adjusted to reflect the
after-tax impact of the operating income adjustments set forth in
the preceding tables and to include the operating income, net of
tax, of MMC's former subsidiary, Putnam (included in discontinued
operations through August 2, 2007); divided by (ii) MMC's average
number of shares outstanding--diluted for the period.
Adjusted income, net of tax does not include gains or losses from
the sales of operations included in discontinued operations, but,
as noted above, does include the operating income of Putnam in
2007.
|
Reconciliation of the Impact of Non-GAAP Measures on Diluted
Earnings Per Share - Three Months Ended
|
|
|
Three Months
Ended December 2008
|
|
Diluted
EPS
|
|
Three Months Ended December 2007
|
|
Diluted
EPS
|
Income from continuing operations
|
|
$73
|
|
$0.14
|
|
|
$90
|
|
$0.17
|
Add impact of operating income adjustments
|
$180
|
|
|
|
|
|
$59
|
|
|
|
|
Deduct impact of income tax expense
|
(61
|
)
|
|
|
|
|
(21
|
)
|
|
|
|
|
|
119
|
|
0.23
|
|
|
38
|
|
0.07
|
Income from continuing operations, as adjusted
|
|
192
|
|
0.37
|
|
|
128
|
|
0.24
|
Add Putnam operating income, net of tax
|
|
-
|
|
-
|
|
|
-
|
|
-
|
Adjusted income, net of tax
|
|
$192
|
|
$0.37
|
|
|
$128
|
|
$0.24
|
Reconciliation of the Impact of Non-GAAP Measures on Diluted
Earnings Per Share - Twelve Months Ended
|
|
|
Twelve Months
Ended December
2008
|
|
Diluted
EPS
|
|
Twelve Months Ended December 2007
|
|
Diluted
EPS
|
(Loss) income from continuing operations
|
|
$(69
|
)
|
|
$(0.13
|
)
|
|
|
$538
|
|
$0.99
|
Add impact of operating income adjustments
|
$979
|
|
|
|
|
|
$156
|
|
|
|
|
Deduct impact of income tax expense
|
(155
|
)
|
|
|
|
|
(53
|
)
|
|
|
|
|
|
824
|
|
|
1.58
|
|
|
|
103
|
|
0.19
|
Income from continuing operations, as adjusted
|
|
755
|
|
|
1.45
|
|
|
|
641
|
|
1.18
|
Add Putnam operating income, net of tax
|
|
-
|
|
|
-
|
|
|
|
90
|
|
0.15
|
Adjusted income, net of tax
|
|
$755
|
|
|
$1.45
|
|
|
|
$731
|
|
$1.33
|
Marsh & McLennan Companies, Inc.
Supplemental Expense Information
Three Months and Twelve Months Ended December 31
(Millions) (Unaudited)
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
Depreciation and Amortization Expense
|
$102
|
|
$104
|
|
$404
|
|
$406
|
Stock Option Expense
|
$ 6
|
|
$ 13
|
|
$ 34
|
|
$ 68
|
Marsh & McLennan Companies, Inc.
Supplemental Information - Quarterly Revenue Analysis
(Millions) (Unaudited)
|
|
Risk and Insurance Services Revenue - Change in Presentation
|
|
In the fourth quarter of 2008, MMC changed the presentation of its
revenue analysis in the risk and insurance services segment so
that fiduciary interest income is segregated from Marsh's and Guy
Carpenter's revenue.
|
|
The following tables provide detailed revenue and fiduciary interest
income information by quarter for 2008 and 2007.
|
|
First Quarter
2008
|
|
Second Quarter
2008
|
|
Third Quarter 2008
|
|
Fourth Quarter 2008
|
|
Full Year 2008
|
|
|
|
|
|
|
|
|
|
|
Risk and Insurance Services
|
|
|
|
|
|
|
|
|
|
Marsh
|
$1,196
|
|
$1,183
|
|
$1,040
|
|
$1,105
|
|
$4,524
|
Guy Carpenter
|
264
|
|
196
|
|
197
|
|
146
|
|
803
|
Fiduciary Interest Income
|
40
|
|
36
|
|
38
|
|
25
|
|
139
|
Total Risk and Insurance Services
|
1,500
|
|
1,415
|
|
1,275
|
|
1,276
|
|
5,466
|
|
|
|
|
|
|
|
|
|
|
Marsh:
|
|
|
|
|
|
|
|
|
|
EMEA
|
$ 569
|
|
$ 426
|
|
$ 353
|
|
$ 358
|
|
$1,706
|
Asia Pacific
|
90
|
|
121
|
|
105
|
|
96
|
|
412
|
Latin America
|
49
|
|
59
|
|
64
|
|
80
|
|
252
|
Total International
|
708
|
|
606
|
|
522
|
|
534
|
|
2,370
|
U.S. and Canada
|
488
|
|
577
|
|
518
|
|
571
|
|
2,154
|
Total Marsh
|
$1,196
|
|
$1,183
|
|
$1,040
|
|
$1,105
|
|
$4,524
|
|
First Quarter
2007
|
|
Second Quarter
2007
|
|
Third Quarter 2007
|
|
Fourth Quarter 2007
|
|
Full Year 2007
|
|
|
|
|
|
|
|
|
|
|
Risk and Insurance Services
|
|
|
|
|
|
|
|
|
|
Marsh
|
$1,110
|
|
$1,091
|
|
$1,002
|
|
$1,166
|
|
$4,369
|
Guy Carpenter
|
280
|
|
206
|
|
212
|
|
156
|
|
854
|
Fiduciary Interest Income
|
44
|
|
44
|
|
49
|
|
40
|
|
177
|
Total Risk and Insurance Services
|
1,434
|
|
1,341
|
|
1,263
|
|
1,362
|
|
5,400
|
|
|
|
|
|
|
|
|
|
|
Marsh:
|
|
|
|
|
|
|
|
|
|
EMEA
|
$ 506
|
|
$ 374
|
|
$ 327
|
|
$ 411
|
|
$1,618
|
Asia Pacific
|
75
|
|
102
|
|
91
|
|
106
|
|
374
|
Latin America
|
44
|
|
54
|
|
60
|
|
81
|
|
239
|
Total International
|
625
|
|
530
|
|
478
|
|
598
|
|
2,231
|
U.S. and Canada
|
485
|
|
561
|
|
524
|
|
568
|
|
2,138
|
Total Marsh
|
$1,110
|
|
$1,091
|
|
$1,002
|
|
$1,166
|
|
$4,369
|
Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions) (Unaudited)
|
|
|
|
|
|
December 31,
2008
|
|
December 31,
2007
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
$ 1,685
|
|
|
$ 2,133
|
|
Net receivables
|
2,758
|
|
|
2,874
|
|
Other current assets
|
331
|
|
|
447
|
|
|
|
|
|
Total current assets
|
4,774
|
|
|
5,454
|
|
|
|
|
|
Goodwill and intangible assets
|
7,159
|
|
|
7,759
|
|
Fixed assets, net
|
969
|
|
|
992
|
|
Pension related asset
|
150
|
|
|
1,411
|
|
Other assets
|
2,169
|
|
|
1,743
|
|
|
|
|
|
TOTAL ASSETS
|
$15,221
|
|
|
$17,359
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
Short-term debt
|
$ 408
|
|
|
$ 260
|
|
Accounts payable and accrued liabilities
|
1,688
|
|
|
1,670
|
|
Regulatory settlements-current portion
|
-
|
|
|
177
|
|
Accrued compensation and employee benefits
|
1,224
|
|
|
1,290
|
|
Accrued income taxes
|
21
|
|
|
96
|
|
|
|
|
|
Total current liabilities
|
3,341
|
|
|
3,493
|
|
|
|
|
|
Fiduciary liabilities
|
3,263
|
|
|
3,612
|
|
Less - cash and investments held in a fiduciary capacity
|
(3,263
|
)
|
|
(3,612
|
)
|
|
-
|
|
|
-
|
|
|
|
|
|
Long-term debt
|
3,194
|
|
|
3,604
|
|
Pension, postretirement and postemployment benefits
|
1,217
|
|
|
709
|
|
Liabilities for errors and omissions
|
512
|
|
|
596
|
|
Other liabilities
|
1,235
|
|
|
1,135
|
|
|
|
|
|
Total stockholders' equity
|
5,722
|
|
|
7,822
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$15,221
|
|
|
$17,359
|
|
SOURCE: Marsh & McLennan Companies, Inc.
Media: MMC Christine Walton, 212-345-0675 christine.walton@mmc.com OR Investors: MMC Mike Bischoff, 212-345-5470 jmichael.bischoff@mmc.com
|