News
Marsh & McLennan Companies Reports Fourth Quarter and Full-Year 2016 Results
February 2, 2017 at 7:00 AM EST
Media Contact
Email:media@mmc.com
Underlying Revenue Growth of 3% for the Quarter and Year
Fourth Quarter GAAP EPS Rises 18% to
Full-Year GAAP EPS Increases 13% to
Double-Digit Operating Income Growth Produces Strong Margin Expansion in 2016
"For the year, our results were excellent. We generated underlying revenue growth of 3% and significant margin improvement. GAAP and adjusted EPS each rose by double digits.
"In addition to our strong operating performance, we had another active year of acquisitions while delivering on our commitments to shareholders to grow dividends by double digits and reduce our share count through meaningful share repurchase." concluded Mr. Glaser.
Consolidated Results
Consolidated revenue in the fourth quarter of 2016 was
For the year 2016, revenue was
Risk & Insurance Services
Risk & Insurance Services revenue was
Marsh's revenue in the fourth quarter of 2016 was
Consulting
Consulting revenue was
Mercer's revenue was
Other Items
The Company had investment income of
The Company repurchased 2.6 million shares of stock for
In
Acquisitions completed in the fourth quarter included Marsh's
acquisition of
Conference Call
A conference call to discuss fourth quarter 2016 results will be held
today at
About
INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS
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," "future," "intend," "plan," "project" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would." Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements.
Factors that could materially affect our future results include, among other things:
- 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 volume of third party vendors we use;
- our ability to successfully recover if we experience a business continuity problem due to cyberattack, natural disaster or otherwise;
- our exposure to potential liabilities, including reputational impact, arising from errors and omissions, breach of fiduciary duty and similar claims against us;
- our ability to compete effectively and adapt to changes in the competitive environment, including to respond to pricing pressures and technological and other types of innovation;
-
the impact of macroeconomic conditions, political events and market
conditions on us, our clients and the industries in which we operate,
including the effects of the vote in the
U.K. to exit the E.U. and the potential for more protectionist laws and business practices; - the financial and operational impact of complying with laws and regulations where we operate, including the E.U.'s General Data Protection Regulation;
- our exposure to potential civil remedies or criminal penalties if we fail to comply with applicable U.S. and non-U.S. laws and regulations;
- our ability to incentivize and retain key employees;
- the effect of our global pension obligations on our financial position, earnings and cash flows and the impact of low interest rates on those obligations;
- the impact on our competitive position of our tax rate relative to our competitors;
- the impact of fluctuations in foreign exchange, interest rates and securities markets on our results; and
- the impact of changes in accounting rules or in our accounting estimates or assumptions.
The factors identified above are not exhaustive. We caution readers not
to place undue reliance on any forward-looking statements, which are
based only on information currently available to us and speak only as of
the dates on which they are made. The Company 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
Marsh & McLennan Companies, Inc. |
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Consolidated Statements of Income |
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(In millions, except per share figures) |
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(Unaudited) |
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Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Revenue | $ | 3,364 | $ | 3,338 | $ | 13,211 | $ | 12,893 | |||||||||||||
Expense: | |||||||||||||||||||||
Compensation and Benefits | 1,918 | 1,900 | 7,461 | 7,334 | |||||||||||||||||
Other Operating Expenses | 813 | 844 | 3,086 | 3,140 | |||||||||||||||||
Operating Expenses | 2,731 | 2,744 | 10,547 | 10,474 | |||||||||||||||||
Operating Income | 633 | 594 | 2,664 | 2,419 | |||||||||||||||||
Interest Income | 1 | 4 | 5 | 13 | |||||||||||||||||
Interest Expense | (48 | ) | (46 | ) | (189 | ) | (163 | ) | |||||||||||||
Investment Income (Loss) | 2 | (1 | ) | — | 38 | ||||||||||||||||
Income Before Income Taxes | 588 | 551 | 2,480 | 2,307 | |||||||||||||||||
Income Tax Expense | 147 | 171 | 685 | 671 | |||||||||||||||||
Income from Continuing Operations | 441 | 380 | 1,795 | 1,636 | |||||||||||||||||
Discontinued Operations, Net of Tax |
— |
1 | — | — | |||||||||||||||||
Net Income Before Non-Controlling Interests | 441 | 381 | 1,795 | 1,636 | |||||||||||||||||
Less: Net Income Attributable to Non-Controlling |
5 | 6 | 27 | 37 | |||||||||||||||||
Net Income Attributable to the Company | $ | 436 | $ | 375 | $ | 1,768 | $ | 1,599 | |||||||||||||
Basic Net Income Per Share | |||||||||||||||||||||
- Continuing Operations |
$ | 0.85 | $ | 0.72 | $ | 3.41 | $ | 3.01 | |||||||||||||
- Net Income Attributable to the Company |
$ | 0.85 | $ | 0.72 | $ | 3.41 | $ | 3.01 | |||||||||||||
Diluted Net Income Per Share | |||||||||||||||||||||
- Continuing Operations |
$ | 0.84 | $ | 0.71 | $ | 3.38 | $ | 2.98 | |||||||||||||
- Net Income Attributable to the Company | $ | 0.84 | $ | 0.71 | $ | 3.38 | $ | 2.98 | |||||||||||||
Average Number of Shares Outstanding | |||||||||||||||||||||
- Basic | 515 | 522 | 519 | 531 | |||||||||||||||||
- Diluted | 521 | 527 | 524 | 536 | |||||||||||||||||
Shares Outstanding at 12/31 | 514 | 522 | 514 | 522 | |||||||||||||||||
Marsh & McLennan Companies, Inc. |
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Supplemental Information - Revenue Analysis |
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Three Months Ended December 31, 2016 |
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(Millions) (Unaudited) |
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Components of Revenue Change* | ||||||||||||||||||||||||
Three Months Ended December 31, |
% Change |
Currency |
Acquisitions/
Dispositions |
Underlying |
||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Risk and Insurance Services | ||||||||||||||||||||||||
Marsh | $ | 1,565 | $ | 1,510 | 4% |
(2)% |
1% | 5% | ||||||||||||||||
Guy Carpenter | 222 | 217 | 3% |
(1)% |
— | 3% | ||||||||||||||||||
Subtotal | 1,787 | 1,727 | 3% |
(2)% |
1% | 4% | ||||||||||||||||||
Fiduciary Interest Income | 6 | 5 | ||||||||||||||||||||||
Total Risk and Insurance Services | 1,793 | 1,732 | 4% |
(2)% |
1% | 5% | ||||||||||||||||||
Consulting | ||||||||||||||||||||||||
Mercer | 1,096 | 1,140 | (4)% |
(2)% |
(2)% | 1% | ||||||||||||||||||
Oliver Wyman Group | 486 | 476 | 2% |
(2)% |
— | 4% | ||||||||||||||||||
Total Consulting | 1,582 | 1,616 | (2)% |
(2)% |
(2)% | 2% | ||||||||||||||||||
Corporate / Eliminations | (11 | ) | (10 | ) | ||||||||||||||||||||
Total Revenue | $ | 3,364 | $ | 3,338 | 1% |
(2)% |
— | 3% |
Revenue Details |
The following table provides more detailed revenue information for certain of the components presented above: |
Components of Revenue Change* | |||||||||||||||||||||||||
Three Months Ended December 31, |
% Change
GAAP |
Currency |
Acquisitions/
Dispositions |
Underlying |
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2016 | 2015 | ||||||||||||||||||||||||
Marsh: | |||||||||||||||||||||||||
EMEA | $ | 481 | $ | 468 | 3% | (5)% | 3% | 5% | |||||||||||||||||
Asia Pacific | 153 | 156 | (1)% | 3% | (8)% | 4% | |||||||||||||||||||
Latin America | 122 | 118 | 3% | (4)% | — | 7% | |||||||||||||||||||
Total International | 756 | 742 | 2% | (3)% | — | 5% | |||||||||||||||||||
U.S. / Canada | 809 | 768 | 5% | — |
1% |
4% | |||||||||||||||||||
Total Marsh | $ | 1,565 | $ | 1,510 | 4% | (2)% |
1% |
5% | |||||||||||||||||
Mercer: | |||||||||||||||||||||||||
Health | $ | 381 | $ | 389 | (2)% | (1)% | — | (1)% | |||||||||||||||||
Retirement | 297 | 372 | (20)% | (4)% | (14)% | (3)% | |||||||||||||||||||
Investments | 219 | 204 | 8% | (3)% | — | 10% | |||||||||||||||||||
Talent | 199 | 175 | 14% | (1)% | 12% | 3% | |||||||||||||||||||
Total Mercer | $ | 1,096 | $ | 1,140 | (4)% | (2)% | (2)% | 1% |
Notes |
Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of certain items that affect comparability such as: acquisitions, dispositions, transfers among businesses and the deconsolidation of Marsh India. The impact of the gain from the disposal of Mercer's U.S. defined contribution recordkeeping business in 2015 is included in acquisitions/dispositions in Mercer's Retirement business. |
* Components of revenue change may not add due to rounding. |
Marsh & McLennan Companies, Inc. |
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Supplemental Information - Revenue Analysis |
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Twelve Months Ended December 31, 2016 |
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(Millions) (Unaudited) |
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Components of Revenue Change* | ||||||||||||||||||||||||||
Twelve Months Ended December 31, |
% Change |
Currency |
Acquisitions/
Dispositions |
Underlying |
||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||
Risk and Insurance Services | ||||||||||||||||||||||||||
Marsh | $ | 5,976 | $ | 5,727 | 4% | (2)% | 4% | 3% | ||||||||||||||||||
Guy Carpenter | 1,141 | 1,121 | 2% | — | — | 2% | ||||||||||||||||||||
Subtotal | 7,117 | 6,848 | 4% | (2)% | 3% | 3% | ||||||||||||||||||||
Fiduciary Interest Income | 26 | 21 | ||||||||||||||||||||||||
Total Risk and Insurance Services | 7,143 | 6,869 | 4% | (2)% | 3% | 3% | ||||||||||||||||||||
Consulting | ||||||||||||||||||||||||||
Mercer | 4,323 | 4,313 | — | (2)% | — | 3% | ||||||||||||||||||||
Oliver Wyman Group | 1,789 | 1,751 | 2% | (2)% | — | 3% | ||||||||||||||||||||
Total Consulting | 6,112 | 6,064 | 1% | (2)% | — | 3% | ||||||||||||||||||||
Corporate / Eliminations | (44 | ) | (40 | ) | ||||||||||||||||||||||
Total Revenue | $ | 13,211 | $ | 12,893 | 2% | (2)% | 2% | 3% | ||||||||||||||||||
Revenue Details |
The following table provides more detailed revenue information for certain of the components presented above: |
Components of Revenue Change* | |||||||||||||||||||||||||||
Twelve Months Ended December 31, |
% Change
GAAP |
Currency |
Acquisitions/
Dispositions |
Underlying |
|||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||||||
Marsh: | |||||||||||||||||||||||||||
EMEA | $ | 1,924 | $ | 1,848 | 4% | (4)% | 6% | 2% | |||||||||||||||||||
Asia Pacific | 635 | 636 | — | — | (3)% | 3% | |||||||||||||||||||||
Latin America | 374 | 380 | (2)% | (10)% | — | 8% | |||||||||||||||||||||
Total International | 2,933 | 2,864 | 2% | (4)% | 4% | 3% | |||||||||||||||||||||
U.S. / Canada | 3,043 | 2,863 | 6% | — | 4% | 2% | |||||||||||||||||||||
Total Marsh | $ | 5,976 | $ | 5,727 | 4% | (2)% | 4% | 3% | |||||||||||||||||||
Mercer: | |||||||||||||||||||||||||||
Health | $ | 1,588 | $ | 1,558 | 2% | (1)% | — | 3% | |||||||||||||||||||
Retirement | 1,215 | 1,345 | (10)% | (3)% | (6)% | — | |||||||||||||||||||||
Investments | 838 | 818 | 2% | (3)% | — | 6% | |||||||||||||||||||||
Talent | 682 | 592 | 15% | (2)% | 12% | 5% | |||||||||||||||||||||
Total Mercer | $ | 4,323 | $ | 4,313 | — | (2)% | — | 3% |
Notes |
Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of certain items that affect comparability such as: acquisitions, dispositions, transfers among businesses and the deconsolidation of Marsh India. The impact of the gain from the disposal of Mercer's U.S. defined contribution recordkeeping business in 2015 is included in acquisitions/dispositions in Mercer's Retirement business. |
* Components of revenue change may not add due to rounding. |
Marsh & McLennan Companies, Inc. |
Reconciliation of Non-GAAP Measures |
Three Months Ended December 31 |
(Millions) (Unaudited) |
Overview |
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (referred to in this release as "GAAP" or "reported" results). The Company also refers to and presents below certain additional non-GAAP financial measures, within the meaning of Regulation G under the Securities Exchange Act of 1934. These measures are: adjusted operating income (loss), adjusted operating margin, adjusted income, net of tax and adjusted earnings per share (EPS). The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP in the following tables. |
The Company believes these non-GAAP financial measures provide useful supplemental information that enables investors to better compare the Company's performance across periods. Management also uses these measures internally to assess the operating performance of its businesses, to assess performance for employee compensation purposes and to decide how to allocate resources. However, investors should not consider these non-GAAP measures in isolation from, or as a substitute for, the financial information that the Company reports in accordance with GAAP. The Company's non-GAAP measures include adjustments that reflect how management views our businesses, and may differ from similarly titled non-GAAP measures presented by other companies. |
Adjusted Operating Income (Loss) and Adjusted Operating Margin |
Adjusted operating income (loss) is calculated by excluding the impact of certain noteworthy items from the Company's GAAP operating income or loss. The following tables identify these noteworthy items and reconcile adjusted operating income (loss) to GAAP operating income or loss, on a consolidated and segment basis, for the three months and twelve months ended December 31, 2016 and 2015. The following tables also present adjusted operating margin. For the three months ended December 31, 2016 and 2015, adjusted operating margin is calculated by dividing adjusted operating income by consolidated or segment GAAP revenue less the gain from the disposal of Mercer's U.S. defined contribution recordkeeping business. |
For the twelve months ended December 31, 2016 and 2015, adjusted operating margin is calculated by dividing adjusted operating income by consolidated or segment GAAP revenue less the net gain on the deconsolidation of Marsh's India subsidiary and the gain and contingent proceeds related to the disposal of Mercer's U.S. defined contribution recordkeeping business. |
Risk & |
Consulting |
Corporate/ Eliminations |
Total | ||||||||||||||||||
Three Months Ended December 31, 2016 | |||||||||||||||||||||
Operating income (loss) | $ | 413 | $ | 265 | $ | (45 | ) | $ | 633 | ||||||||||||
Add impact of Noteworthy Items: | |||||||||||||||||||||
Restructuring charges (a) | 1 | 33 | 1 | 35 | |||||||||||||||||
Adjustments to acquisition related accounts (b) | 5 | 1 | — | 6 | |||||||||||||||||
Deconsolidation of business (c) | 1 | — | — | 1 | |||||||||||||||||
Other | 1 | — | — | 1 | |||||||||||||||||
Operating income adjustments | 8 | 34 | 1 | 43 | |||||||||||||||||
Adjusted operating income (loss) | $ | 421 | $ | 299 | $ | (44 | ) | $ | 676 | ||||||||||||
Operating margin | 23.0 | % | 16.8 | % | N/A | 18.8 | % | ||||||||||||||
Adjusted operating margin | 23.5 | % | 18.9 | % | N/A | 20.1 | % | ||||||||||||||
Three Months Ended December 31, 2015 | |||||||||||||||||||||
Operating income (loss) | $ | 354 | $ | 294 | $ | (54 | ) | $ | 594 | ||||||||||||
Add (Deduct) impact of Noteworthy Items: | |||||||||||||||||||||
Restructuring charges (a) | 5 | 8 | 7 | 20 | |||||||||||||||||
Adjustments to acquisition related accounts (b) | 5 | — | — | 5 | |||||||||||||||||
Disposal of business (c) | — | (37 | ) | — | (37 | ) | |||||||||||||||
Operating income adjustments | 10 | (29 | ) | 7 | (12 | ) | |||||||||||||||
Adjusted operating income (loss) | $ | 364 | $ | 265 | $ | (47 | ) | $ | 582 | ||||||||||||
Operating margin | 20.4 | % | 18.2 | % | N/A | 17.8 | % | ||||||||||||||
Adjusted operating margin | 21.1 | % | 16.7 | % | N/A | 17.6 | % |
(a) Primarily severance related to the reorganization of certain Mercer businesses and for center led initiatives, future rent under non-cancellable leases and integration costs related to recent acquisitions. |
(b) Primarily includes the change in fair value as measured each quarter of contingent consideration related to acquisitions. |
(c) In 2016, relates to a net gain on the deconsolidation of Marsh's India subsidiary. In 2015, relates to the gain from the disposal of Mercer's U.S. defined contribution recordkeeping business. The amounts are removed from GAAP revenue in the calculation of adjusted operating margin. |
Marsh & McLennan Companies, Inc. |
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Reconciliation of Non-GAAP Measures |
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Twelve Months Ended December 31 |
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(Millions) (Unaudited) |
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Adjusted Operating Income (Loss) and Adjusted Operating Margin (cont'd) |
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Risk & |
Consulting |
Corporate/ Eliminations |
Total | ||||||||||||||||||
Twelve Months Ended December 31, 2016 | |||||||||||||||||||||
Operating income (loss) | $ | 1,753 | $ | 1,103 | $ | (192 | ) | $ | 2,664 | ||||||||||||
Add (Deduct) impact of Noteworthy Items: | |||||||||||||||||||||
Restructuring charges (a) | 3 | 34 | 7 | 44 | |||||||||||||||||
Adjustments to acquisition related accounts (b) | 12 | 3 | — | 15 | |||||||||||||||||
Disposal/deconsolidation of business (c) | (11 | ) | (6 | ) | — | (17 | ) | ||||||||||||||
Other | 2 | — | — | 2 | |||||||||||||||||
Operating income adjustments | 6 | 31 | 7 | 44 | |||||||||||||||||
Adjusted operating income (loss) | $ | 1,759 | $ | 1,134 | $ | (185 | ) | $ | 2,708 | ||||||||||||
Operating margin | 24.5 | % | 18.1 | % | N/A | 20.2 | % | ||||||||||||||
Adjusted operating margin | 24.7 | % | 18.6 | % | N/A | 20.5 | % | ||||||||||||||
Twelve Months Ended December 31, 2015 | |||||||||||||||||||||
Operating income (loss) | $ | 1,539 | $ | 1,075 | $ | (195 | ) | $ | 2,419 | ||||||||||||
Add (Deduct) impact of Noteworthy Items: | |||||||||||||||||||||
Restructuring charges (a) | 8 | 8 | 12 | 28 | |||||||||||||||||
Adjustments to acquisition related accounts (b) | 56 | (5 | ) | — | 51 | ||||||||||||||||
Disposal of business (c) | — | (37 | ) | — | (37 | ) | |||||||||||||||
Other | — | — | (1 | ) | (1 | ) | |||||||||||||||
Operating income adjustments | 64 | (34 | ) | 11 | 41 | ||||||||||||||||
Adjusted operating income (loss) | $ | 1,603 | $ | 1,041 | $ | (184 | ) | $ | 2,460 | ||||||||||||
Operating margin | 22.4 | % | 17.7 | % | N/A | 18.8 | % | ||||||||||||||
Adjusted operating margin | 23.3 | % | 17.3 | % | N/A | 19.1 | % |
(a) Primarily severance related to the reorganization of certain Mercer businesses and for center led initiatives, future rent under non-cancellable leases and integration costs related to recent acquisitions. |
(b) Primarily includes the change in fair value as measured each quarter of contingent consideration related to acquisitions. |
(c) For 2016, relates to a net gain on the deconsolidation of Marsh's India subsidiary and contingent proceeds received in connection with the disposal of Mercer's U.S. defined contribution recordkeeping business. For 2015, reflects proceeds received in connection with the disposal of Mercer's U.S. defined contribution recordkeeping business. The amounts are removed from GAAP revenue in the calculation of adjusted operating margin. |
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 the Company's GAAP income from continuing operations, adjusted to reflect the after-tax impact of the operating income adjustments set forth in the preceding tables. Adjusted EPS is calculated by dividing the Company's adjusted income, net of tax, by MMC's average number of shares outstanding-diluted for the relevant period. The following tables reconcile adjusted income, net of tax to GAAP income from continuing operations and adjusted EPS to GAAP EPS for the three months and twelve months ended December 31, 2016 and 2015. |
Reconciliation of the Impact of Non-GAAP Measures on diluted earnings per share - | ||||||||||||||||||||||||||
Three Months Ended December 31, |
Three Months Ended December 31, |
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Amount |
Diluted |
Amount |
Diluted |
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Income from continuing operations | $ | 441 | $ | 380 | ||||||||||||||||||||||
Less: Non-controlling interest, net of tax | 5 | 6 | ||||||||||||||||||||||||
Subtotal | $ | 436 | $ | 0.84 | $ | 374 | $ | 0.71 | ||||||||||||||||||
Operating income adjustments | $ | 43 | $ | (12 | ) | |||||||||||||||||||||
Impact of income taxes | (14 | ) | 10 | |||||||||||||||||||||||
29 | 0.05 | (2 | ) | — | ||||||||||||||||||||||
Adjusted income, net of tax | $ | 465 | $ | 0.89 | $ | 372 | $ | 0.71 | ||||||||||||||||||
Twelve Months Ended December 31, |
Twelve Months Ended December 31, |
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Amount |
Diluted |
Amount |
Diluted |
|||||||||||||||||||||||
Income from continuing operations | $ | 1,795 | $ | 1,636 | ||||||||||||||||||||||
Less: Non-controlling interest, net of tax | 27 | 37 | ||||||||||||||||||||||||
Subtotal | $ | 1,768 | $ | 3.38 | $ | 1,599 | $ | 2.98 | ||||||||||||||||||
Operating income adjustments | $ | 44 | $ | 41 | ||||||||||||||||||||||
Impact of income taxes | (21 | ) | (5 | ) | ||||||||||||||||||||||
23 | 0.04 | 36 | 0.07 | |||||||||||||||||||||||
Adjusted income, net of tax | $ | 1,791 | $ | 3.42 | $ | 1,635 | $ | 3.05 | ||||||||||||||||||
Marsh & McLennan Companies, Inc. |
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Supplemental Information |
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Three and Twelve Months Ended December 31 |
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(Millions) (Unaudited) |
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Three Months Ended | Twelve Months Ended | ||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Consolidated | |||||||||||||||||||
Compensation and Benefits | $ | 1,918 | $ | 1,900 | $ | 7,461 | $ | 7,334 | |||||||||||
Other operating expenses | 813 | 844 | 3,086 | 3,140 | |||||||||||||||
Total Expenses | $ | 2,731 | $ | 2,744 | $ | 10,547 | $ | 10,474 | |||||||||||
Depreciation and amortization expense | $ | 77 | $ | 81 | $ | 308 | $ | 314 | |||||||||||
Identified intangible amortization expense | 31 | 30 | 130 | 109 | |||||||||||||||
Total | $ | 108 | $ | 111 | $ | 438 | $ | 423 | |||||||||||
Stock option expense | $ | 3 | $ | 2 | $ | 21 | $ | 20 | |||||||||||
Capital expenditures | $ | 79 | $ | 76 | $ | 253 | $ | 325 | |||||||||||
Risk and Insurance Services | |||||||||||||||||||
Compensation and Benefits | $ | 953 | $ | 932 | $ | 3,732 | $ | 3,629 | |||||||||||
Other operating expenses | 427 | 446 | 1,658 | 1,701 | |||||||||||||||
Total Expenses | $ | 1,380 | $ | 1,378 | $ | 5,390 | $ | 5,330 | |||||||||||
Depreciation and amortization expense | $ | 34 | $ | 38 | $ | 139 | $ | 145 | |||||||||||
Identified intangible amortization expense | 26 | 25 | 109 | 94 | |||||||||||||||
Total | $ | 60 | $ | 63 | $ | 248 | $ | 239 | |||||||||||
Consulting | |||||||||||||||||||
Compensation and Benefits | $ | 879 | $ | 879 | $ | 3,385 | $ | 3,354 | |||||||||||
Other operating expenses | 438 | 443 | 1,624 | 1,635 | |||||||||||||||
Total Expenses | $ | 1,317 | $ | 1,322 | $ | 5,009 | $ | 4,989 | |||||||||||
Depreciation and amortization expense | $ | 25 | $ | 26 | $ | 100 | $ | 106 | |||||||||||
Identified intangible amortization expense | 5 | 5 | 21 | 15 | |||||||||||||||
Total | $ | 30 | $ | 31 | $ | 121 | $ | 121 | |||||||||||
Marsh & McLennan Companies, Inc. |
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Consolidated Balance Sheets |
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(Millions) (Unaudited) |
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December 31, 2016 |
December 31, 2015 |
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ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1,026 | $ | 1,374 | |||||||
Net receivables | 3,643 | 3,471 | |||||||||
Other current assets | 215 | 199 | |||||||||
Total current assets | 4,884 | 5,044 | |||||||||
Goodwill and intangible assets | 9,495 | 8,925 | |||||||||
Fixed assets, net | 725 | 773 | |||||||||
Pension related assets | 776 | 1,159 | |||||||||
Deferred tax assets | 1,097 | 1,138 | |||||||||
Other assets | 1,213 | 1,177 | |||||||||
TOTAL ASSETS | $ | 18,190 | $ | 18,216 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term debt | $ | 312 | $ | 12 | |||||||
Accounts payable and accrued liabilities | 1,969 | 1,886 | |||||||||
Accrued compensation and employee benefits | 1,655 | 1,656 | |||||||||
Accrued income taxes | 146 | 154 | |||||||||
Total current liabilities | 4,082 | 3,708 | |||||||||
Fiduciary liabilities | 4,241 | 4,146 | |||||||||
Less - cash and investments held in a fiduciary capacity | (4,241 | ) | (4,146 | ) | |||||||
— | — | ||||||||||
Long-term debt | 4,495 | 4,402 | |||||||||
Pension, post-retirement and post-employment benefits | 2,076 | 2,058 | |||||||||
Liabilities for errors and omissions | 308 | 318 | |||||||||
Other liabilities | 957 | 1,128 | |||||||||
Total equity | 6,272 | 6,602 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 18,190 | $ | 18,216 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20170202005581/en/
Source:
Media:
Marsh & McLennan Companies
Laura Schooler,
+1 212-345-0370
laura.schooler@mmc.com
or
Investors:
Marsh
& McLennan Companies
Keith Walsh, +1 212-345-0057
keith.walsh@mmc.com