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MHM Marsh & Mclennan Cos. Inc

81.00
0.00 (0.00%)
25 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Marsh & Mclennan Cos. Inc LSE:MHM London Ordinary Share COM US$1
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 81.00 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Ins Agents,brokers & Service 22.74B 3.76B 7.6395 26.30 98.8B

Marsh & McLennan. Marsh & McLennan Companies Reports Third Quarter 2016 Results

25/10/2016 12:00pm

UK Regulatory


Marsh & Mclennan Cos (LSE:MHM)
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TIDMMHM 
 
 

Marsh & McLennan Companies, Inc. (NYSE:MMC), a global professional services firm offering clients advice and solutions in risk, strategy and people, today reported financial results for the third quarter ended September 30, 2016.

 

Dan Glaser, President and CEO, said: "We produced another quarter of strong earnings growth, delivering double-digit growth in both GAAP and adjusted EPS, with margin expansion in both segments. Through nine months, we have generated underlying revenue growth of 3%, solid earnings growth and margin expansion in each segment. For the full year, we continue to expect to deliver underlying revenue growth, meaningful margin expansion and strong growth in earnings per share."

 

Consolidated Results

 

Consolidated revenue in the third quarter of 2016 was $3.1 billion, an increase of 1% on both a reported and underlying basis compared with the third quarter of 2015. Operating income rose 24% to $572 million. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, increased 16% to $562 million. Net income attributable to the Company was up 17% to $379 million. Earnings per share increased 20% to $.73. Adjusted earnings per share rose 10% to $.69 compared with $.63 in last year's third quarter.

 

For the nine months ended September 30, 2016, revenue was $9.8 billion, an increase of 3% on both a reported and underlying basis. Net income attributable to the Company was up 9% to $1.3 billion, and earnings per share rose 12% to $2.54. Adjusted earnings per share increased 8% to $2.53 compared with $2.34 for the comparable period in 2015.

 

Risk & Insurance Services

 

Risk & Insurance Services revenue was $1.6 billion in the third quarter of 2016, an increase of 3%. Revenue grew 2% on an underlying basis. Operating income was $315 million, an increase of 39%. Adjusted operating income rose 22% to $302 million compared with $248 million in last year's third quarter. For the nine months ended September 30, 2016, revenue was $5.4 billion, an increase of 4%, or 2% on an underlying basis. Operating income rose 13% to $1.3 billion. Adjusted operating income rose 8% to $1.3 billion, compared with $1.2 billion last year.

 

Marsh's revenue in the third quarter of 2016 was $1.4 billion, an increase of 2% on an underlying basis. The U.S./Canada division produced underlying revenue growth of 3%, while International operations rose 2%: EMEA was flat, Asia Pacific rose 2% and Latin America increased 9%. Guy Carpenter's third quarter revenue was $260 million, flat on an underlying basis.

 

Consulting

 

Consulting revenue was $1.5 billion in the third quarter, a decrease of 2%. Revenue was flat on an underlying basis. Operating income rose 8% to $308 million. Adjusted operating income increased 8% to $309 million compared with $285 million in last year's third quarter. For the nine months of 2016, revenue was $4.5 billion, up 2%, or 3% on an underlying basis. Operating income rose 7% to $838 million. Adjusted operating income increased 8% to $835 million compared with $776 million in 2015.

 

Mercer's revenue was $1.1 billion in the third quarter, an increase of 3% on an underlying basis. Investments grew 7% on an underlying basis; Talent increased 7%; Health grew 2%; and Retirement was flat. Oliver Wyman Group's revenue was $404 million in the third quarter, a decrease of 9% on an underlying basis.

 

Other Items

 

Investment income was negligible in the third quarter, compared with $34 million in the prior year period. The Company repurchased 3 million shares of stock for $200 million in the third quarter. Through nine months, the Company has repurchased 10 million shares for $625 million.

 

Conference Call

 

A conference call to discuss third quarter 2016 results will be held today at 8:30 a.m. Eastern time. To participate in the teleconference, please dial +1 888 349 9618. Callers from outside the United States should dial +1 719 325 2202. The access code for both numbers is 9526128. 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.

 

About Marsh & McLennan Companies

 

MARSH & McLENNAN COMPANIES (NYSE: MMC) is a global professional services firm offering clients advice and solutions in the areas of risk, strategy and people. Marsh is a leader in insurance broking and risk management; Guy Carpenter is a leader in providing risk and reinsurance intermediary services; Mercer is a leader in talent, health, retirement and investment consulting; and Oliver Wyman is a leader in management consulting. With annual revenue of $13 billion and approximately 60,000 colleagues worldwide, Marsh & McLennan Companies provides analysis, advice and transactional capabilities to clients in more than 130 countries. The Company is committed to being a responsible corporate citizen and making a positive impact in the communities in which it operates. Visit www.mmc.com for more information and follow us on LinkedIn and Twitter @MMC_Global.

 

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 ability to maintain adequate safeguards to protect the security of 

our information systems and confidential, personal or proprietary

information;

 
    -- our ability to successfully recover if we experience a business 

continuity problem due to cyberattack, natural disaster or otherwise;

 
    -- our exposure to potential losses and 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 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

rising protectionist laws and business practices;

 
    -- the impact of changes in applicable tax laws and regulations, 

particularly in the United States and Europe;

 
    -- 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 financial and operational impact of complying with laws and 

regulations where we operate;

 
    -- 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;

 
    -- the impact of fluctuations in foreign exchange, interest rates and 

securities markets on our results;

 
    -- the impact on our competitive position of our tax rate relative to our 

competitors;

 
    -- our ability to incentivize and retain key employees; 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 and its businesses, including information about factors that could materially affect our results of operations and financial condition, is contained in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of our 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              Nine Months Ended 
                    September 30,                   September 30, 
                    2016         2015               2016         2015 
Revenue             $  3,135     $   3,115          $  9,847     $   9,555 
Expense: 
Compensation        1,817        1,878              5,543        5,434 
and 
Benefits 
Other               746          776                2,273        2,296 
Operating 
Expenses 
Operating           2,563        2,654              7,816        7,730 
Expenses 
Operating           572          461                2,031        1,825 
Income 
Interest            -            3                  4            9 
Income 
Interest            (47      )   (41            )   (141     )   (117          ) 
Expense 
Investment          -            34                 (2       )   39 
Income 
(Loss) 
Income              525          457                1,892        1,756 
Before 
Income 
Taxes 
Income Tax          141          128                538          500 
Expense 
Income              384          329                1,354        1,256 
from 
Continuing 
Operations 
Discontinued        -            2                  -            (1            ) 
Operations, 
Net of Tax 
Net Income          384          331                1,354        1,255 
Before 
Non-Controlling 
Interests 
Less: Net           5            8                  22           31 
Income 
Attributable 
to 
Non-Controlling 
Interests 
Net                 $  379       $   323            $  1,332     $   1,224 
Income 
Attributable 
to 
the Company 
Basic Net 
Income 
Per Share 
-                   $  0.73      $   0.61           $  2.56      $   2.29 
Continuing 
Operations 
-                   $  0.73      $   0.61           $  2.56      $   2.29 
Net Income 
Attributable 
to 
the Company 
Diluted 
Net 
Income 
Per Share 
-                   $  0.73      $   0.60           $  2.54      $   2.27 
Continuing 
Operations 
-                   $  0.73      $   0.61           $  2.54      $   2.27 
Net Income 
Attributable 
to 
the Company 
Average 
Number 
of Shares 
Outstanding 
- Basic             518          528                520          534 
- Diluted           523          533                525          540 
Shares              516          522                516          522 
Outstanding 
at 9/30 
 
 
Marsh & McLennan Companies, Inc.Supplemental 
Information - Revenue Analysis 
Three Months Ended September 30, 
2016(Millions)  (Unaudited) 
                                                                                                                   Components of Revenue Change* 
                                                 Three Months EndedSeptember 30,             % ChangeGAAPRevenue   CurrencyImpact   Acquisitions/        UnderlyingRevenue 
                                                                                                                                    DispositionsImpact 
                                                 2016         2015 
Risk and Insurance Services 
Marsh                                            $  1,364     $  1,317                       4 %                   (1)%             2%                   2 % 
Guy Carpenter                                    260          261                            -                     -                -                    - 
Subtotal                                         1,624        1,578                          3 %                   (1)%             2%                   2 % 
Fiduciary Interest Income                        8            6 
Total Risk and Insurance                         1,632        1,584                          3 %                   (1)%             2%                   2 % 
Services 
Consulting 
Mercer                                           1,109        1,090                          2 %                   (2)%             1%                   3 % 
Oliver Wyman Group                               404          450                            (10)%                 (1)%             -                    (9)% 
Total Consulting                                 1,513        1,540                          (2)%                  (2)%             -                    - 
Corporate / Eliminations                         (10      )   (9                         ) 
Total Revenue                                    $  3,135     $  3,115                       1 %                   (1)%             1%                   1 % 
 
 

Revenue Details

 

The following table provides more detailed revenue information for certain of the components presented above:

 
                                                              Components of Revenue Change* 
                  Three Months Ended            % Change      CurrencyImpact   Acquisitions/        UnderlyingRevenue 
                  September 30,                 GAAPRevenue                    DispositionsImpact 
                  2016        2015 
Marsh: 
EMEA              $  394      $  378            5 %           (3)%             7 %                  - 
Asia Pacific      153         156               (3)%          3 %              (7)%                 2% 
Latin America     88          86                2 %           (7)%             -                    9% 
Total             635         620               2 %           (2)%             3 %                  2% 
International 
U.S. / Canada     729         697               5 %           -                2 %                  3% 
Total Marsh       $  1,364    $  1,317          4 %           (1)%             2 %                  2% 
Mercer: 
Health            $  397      $  394            1 %           (1)%             (1)%                 2% 
Retirement        292         317               (8)%          (4)%             (3)%                 - 
Investments       213         202               5 %           (2)%             -                    7% 
Talent            207         177               17 %          (1)%             11 %                 7% 
Total Mercer      $  1,109    $  1,090          2 %           (2)%             1 %                  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. 
* Components of revenue change may not add due to rounding. 
 
 
Marsh & McLennan 
Companies, Inc. 
Supplemental 
Information 
- Revenue 
Analysis 
Nine Months Ended 
September 
30, 2016 
(Millions) 
(Unaudited) 
                                                                          Components of Revenue Change* 
                      Nine Months Ended             % ChangeGAAPRevenue   CurrencyImpact   Acquisitions/         UnderlyingRevenue 
                      September 30,                                                        Dispositions Impact 
                      2016         2015 
Risk 
and Insurance 
Services 
Marsh                 $  4,411     $  4,217         5%                    (2)%             5%                    2% 
Guy Carpenter         919          904              2%                    -                -                     2% 
Subtotal              5,330        5,121            4%                    (2)%             4%                    2% 
Fiduciary             20           16 
Interest 
Income 
Total Risk and        5,350        5,137            4%                    (2)%             4%                    2% 
Insurance 
Services 
Consulting 
Mercer                3,227        3,173            2%                    (2)%             1%                    3% 
Oliver Wyman          1,303        1,275            2%                    (1)%             1%                    3% 
Group 
Total Consulting      4,530        4,448            2%                    (2)%             1%                    3% 
Corporate             (33      )   (30          ) 
/ Eliminations 
Total Revenue         $  9,847     $  9,555         3%                    (2)%             2%                    3% 
 
 

Revenue Details

 

The following table provides more detailed revenue information for certain of the components presented above:

 
                                                             Components of Revenue Change* 
                  Nine Months Ended            % Change      CurrencyImpact   Acquisitions/        UnderlyingRevenue 
                  September 30,                GAAPRevenue                    DispositionsImpact 
                  2016        2015 
Marsh: 
EMEA              $  1,443    $  1,380         5 %           (4)%             7 %                  1% 
Asia Pacific      482         480              -             (1)%             (1)%                 2% 
Latin America     252         262              (4)%          (13)%            -                    9% 
Total             2,177       2,122            3 %           (4)%             5 %                  2% 
International 
U.S. / Canada     2,234       2,095            7 %           -                5 %                  2% 
Total Marsh       $  4,411    $  4,217         5 %           (2)%             5 %                  2% 
Mercer: 
Health            $  1,207    $  1,169         3 %           (1)%             -                    5% 
Retirement        918         973              (6)%          (3)%             (3)%                 - 
Investments       619         614              1 %           (4)%             -                    4% 
Talent            483         417              16 %          (2)%             12 %                 5% 
Total Mercer      $  3,227    $  3,173         2 %           (2)%             1 %                  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. 
* Components of revenue change may not add due to rounding. 
 
 
Marsh & McLennan Companies, Inc. 
Reconciliation of Non-GAAP Measures 
(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 business, 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 
reconcileadjusted operating income 
(loss)to GAAP operating  income or loss, 
on a consolidated and segment basis, 
for the three  months and nine months 
ended September 30, 2016 and 2015. The 
following tables also presentadjusted operating 
margin. For  the three months 
ended September 30, 2016 and 2015,adjusted 
operating marginis calculated by dividing 
adjusted operating  income by consolidated or segment GAAP revenue. 
For the nine months ended September 30, 2016 and 
2015,adjusted  operating marginis 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 contingent  proceeds related 
to the disposal of Mercer's U.S. defined 
contribution recordkeeping business. 
 
 
                     Risk &InsuranceServices      Consulting      Corporate/        Total 
                                                                  Eliminations 
Three Months 
Ended 
September 
30, 2016 
Operating            $  315                       $  308          $  (51 )          $  572 
income 
(loss) 
Add (Deduct) 
impact of 
Noteworthy 
Items: 
Restructuring        (1     )                     -               2                 1 
(a) 
Adjustments to       (13    )                     1               -                 (12    ) 
acquisition 
related accounts 
(b) 
Other                1                            -               -                 1 
Operating            (13    )                     1               2                 (10    ) 
income 
adjustments 
Adjusted             $  302                       $  309          $  (49 )          $  562 
operating 
income (loss) 
Operating            19.2   %                     20.4   %        N/A               18.2   % 
margin 
Adjusted             18.5   %                     20.4   %        N/A               18.0   % 
operating 
margin 
Three Months 
Ended 
September 
30, 2015 
Operating            $  225                       $  285          $  (49 )          $  461 
income 
(loss) 
Add impact of 
Noteworthy 
Items: 
Restructuring        1                            -               2                 3 
(a) 
Adjustments to       22                           -               -                 22 
acquisition 
related accounts 
(b) 
Operating            23                           -               2                 25 
income 
adjustments 
Adjusted             $  248                       $  285          $  (47 )          $  486 
operating 
income (loss) 
Operating            14.2   %                     18.5   %        N/A               14.8   % 
margin 
Adjusted             15.7   %                     18.5   %        N/A               15.6   % 
operating 
margin 
 
 
(a) Primarily severance 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. 
 
 
Marsh & McLennan 
Companies, Inc. 
Reconciliation 
of Non-GAAP 
Measures 
(Millions) 
(Unaudited) 
Adjusted Operating 
Income (Loss) and 
Adjusted Operating 
Margin  (cont'd) 
                             Risk &InsuranceServices      Consulting      Corporate/        Total 
                                                                          Eliminations 
Nine Months Ended 
September 
30, 2016 
Operating income             $  1,340                     $  838          $  (147 )         $  2,031 
(loss) 
Add (Deduct) 
impact of 
Noteworthy Items: 
Restructuring (a)            2                            1               6                 9 
Adjustments to               7                            2               -                 9 
acquisition 
related accounts 
(b) 
Disposal/deconsolidation     (12      )                   (6     )        -                 (18      ) 
of business (c) 
Other                        1                            -               -                 1 
Operating income             (2       )                   (3     )        6                 1 
adjustments 
Adjusted operating           $  1,338                     $  835          $  (141 )         $  2,032 
income (loss) 
Operating margin             25.0     %                   18.5   %        N/A               20.6     % 
Adjusted operating           25.1     %                   18.5   %        N/A               20.7     % 
margin 
Nine Months Ended 
September 
30, 2015 
Operating income             $  1,185                     $  781          $  (141 )         $  1,825 
(loss) 
Add (Deduct) 
impact of 
Noteworthy Items: 
Restructuring (a)            3                            -               5                 8 
Adjustments to               51                           (5     )        -                 46 
acquisition 
related accounts 
(b) 
Other                        -                            -               (1      )         (1       ) 
Operating income             54                           (5     )        4                 53 
adjustments 
Adjusted operating           $  1,239                     $  776          $  (137 )         $  1,878 
income (loss) 
Operating margin             23.1     %                   17.6   %        N/A               19.1     % 
Adjusted operating           24.1     %                   17.5   %        N/A               19.7     % 
margin 
 
 
(a) Primarily severance 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) Reflects the net gain on the deconsolidation 
of Marsh's India  subsidiary 
and contingent proceeds related to 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. 
Reconciliation of Non-GAAP Measures 
(Millions) (Unaudited) 
Adjusted Income, Net of Tax and Adjusted Earnings per Share 
Adjusted income,net of taxis 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 
EPSis calculated by  dividing the Company'sadjusted income, net of 
tax, by MMC's  average number of shares 
outstanding-diluted for the relevant 
period. The following tables reconcileadjusted income, net of taxto 
GAAP income from continuing operations andadjusted EPSto  GAAP EPS for 
the three months and nine months ended September 30,  2016 and 2015. 
 
 
                    Three Months Ended                           Three Months Ended 
                    September 30, 2016                           September 30, 2015 
                    Amount                     AdjustedEPS       Amount                  AdjustedEPS 
Income                          $   384                                     $   329 
from 
continuing 
operations 
Less:                           5                                           8 
Non-controlling 
interest, 
net 
of tax 
Subtotal                        $   379        $   0.73                     $   321      $   0.60 
Operating           $   (10 )                                    $   25 
income 
adjustments 
Impact of           (7      )                                    (8     ) 
income 
taxes 
                                (17       )    (0.04    )                   17           0.03 
Adjusted                        $   362        $   0.69                     $   338      $   0.63 
income, 
net of tax 
                    Nine Months Ended                            Nine Months Ended 
                    September 30, 2016                           September 30, 2015 
                    Amount                     AdjustedEPS       Amount                  AdjustedEPS 
Income                          $   1,354                                   $   1,256 
from 
continuing 
operations 
Less:                           22                                          31 
Non-controlling 
interest, 
net 
of tax 
Subtotal                        $   1,332      $   2.54                     $   1,225    $   2.27 
Operating           $   1                                        $   53 
income 
adjustments 
Impact of           (7      )                                    (15    ) 
income 
taxes 
                                (6        )    (0.01    )                   38           0.07 
Adjusted                        $   1,326      $   2.53                     $   1,263    $   2.34 
income, 
net of tax 
 
 
Marsh 
& McLennan 
Companies, 
Inc. 
Supplemental 
Information 
Three and 
Nine 
Months 
Ended 
September 
30 
(Millions) 
(Unaudited) 
                 Three Months Ended            Nine Months Ended 
                 September 30,                 September 30, 
                 2016        2015              2016        2015 
Consolidated 
Compensation     $  1,817    $  1,878          $  5,543    $  5,434 
and 
Benefits 
Other            746         776               2,273       2,296 
operating 
expenses 
Total            $  2,563    $  2,654          $  7,816    $  7,730 
Expenses 
Depreciation     $  77       $  77             $  231      $  233 
and 
amortization 
expense 
Identified       32          31                99          79 
intangible 
amortization 
expense 
Total            $  109      $  108            $  330      $  312 
Stock            $  3        $  5              $  18       $  18 
option 
expense 
Capital          $  60       $  73             $  174      $  249 
expenditures 
Risk 
and 
Insurance 
Services 
Compensation     $  924      $  926            $  2,779    $  2,697 
and 
Benefits 
Other            393         433               1,231       1,255 
operating 
expenses 
Total            $  1,317    $  1,359          $  4,010    $  3,952 
Expenses 
Depreciation     $  35       $  35             $  105      $  107 
and 
amortization 
expense 
Identified       26          28                83          69 
intangible 
amortization 
expense 
Total            $  61       $  63             $  188      $  176 
Consulting 
Compensation     $  807      $  861            $  2,506    $  2,475 
and 
Benefits 
Other            398         394               1,186       1,192 
operating 
expenses 
Total            $  1,205    $  1,255          $  3,692    $  3,667 
Expenses 
Depreciation     $  25       $  27             $  75       $  80 
and 
amortization 
expense 
Identified       6           3                 16          10 
intangible 
amortization 
expense 
Total            $  31       $  30             $  91       $  90 
 
 
Marsh & McLennan Companies, Inc. 
Consolidated Balance Sheets 
(Millions) 
                                         (Unaudited)        December 31, 
                                         September 30,      2015 
                                         2016 
ASSETS 
Current assets: 
Cash and cash equivalents                $  1,388           $  1,374 
Net receivables                          3,603              3,471 
Other current assets                     218                199 
Total current assets                     5,209              5,044 
Goodwill and intangible assets           8,882              8,925 
Fixed assets, net                        717                773 
Pension related assets                   1,253              1,159 
Deferred tax assets                      1,085              1,138 
Other assets                             1,212              1,177 
TOTAL ASSETS                             $  18,358          $  18,216 
LIABILITIES AND EQUITY 
Current liabilities: 
Short-term debt                          $  262             $  12 
Accounts payable and                     1,862              1,886 
accrued liabilities 
Accrued compensation and                 1,310              1,656 
employee benefits 
Accrued income taxes                     213                154 
Dividends payable                        178                - 
Total current liabilities                3,825              3,708 
Fiduciary liabilities                    4,532              4,146 
Less - cash and investments held         (4,532    )        (4,146    ) 
in a fiduciary capacity 
                                         -                  - 
Long-term debt                           4,494              4,402 
Pension, post-retirement and             1,969              2,058 
post-employment benefits 
Liabilities for errors and omissions     317                318 
Other liabilities                        999                1,128 
Total equity                             6,754              6,602 
TOTAL LIABILITIES AND EQUITY             $  18,358          $  18,216 
 
 
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 
 
 
 
 

View source version on businesswire.com: http://www.businesswire.com/news/home/20161025005842/en/

 
This information is provided by Business Wire 
 
 

(END) Dow Jones Newswires

October 25, 2016 07:00 ET (11:00 GMT)

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