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| 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 | 26.74 | 100.44B |
From May 2019 to May 2024
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 first quarter ended March 31, 2018.
Dan Glaser, President and CEO, said: "We are pleased with our performance in the first quarter. On a consolidated basis, Marsh & McLennan delivered strong underlying revenue growth of 4% with continued solid earnings growth and margin expansion. We had underlying revenue growth across all of our operating companies, with growth of 3% in Risk & Insurance Services and 5% in Consulting. Adjusted EPS grew 14%, excluding the impact of the new revenue recognition standard."
"We are off to a good start to the year and are well positioned to deliver underlying revenue growth in the 3-5% range, margin expansion and strong growth in earnings per share in 2018," concluded Mr. Glaser.
Consolidated Results
Earnings per share increased 23% to $1.34. Adjusted EPS increased 28% to $1.38 from the prior year period. The 28% increase in adjusted EPS includes a $0.15 per share benefit from application of the new revenue recognition accounting standard, ASC 606, effective January 2018. Excluding the impact of the revenue standard, adjusted EPS increased 14%. The Company adopted the revenue standard using the modified retrospective method, and accordingly has not restated prior years and quarters.
Consolidated revenue in the first quarter of 2018 was $4.0 billion, an increase of 14%, or 4% on an underlying basis, compared with the first quarter of 2017. Operating income was $908 million, an increase of 21% from the prior year. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 24% to $918 million, and adjusted net income was $707 million. Excluding the impact of the revenue standard, adjusted operating income rose 10%.
Risk & Insurance Services
Risk & Insurance Services revenue was $2.3 billion in the first quarter of 2018, an increase of 3% on an underlying basis. Operating income was $716 million, an increase of 26%. Adjusted operating income rose 30% to $723 million compared with $555 million in last year's first quarter. Excluding the impact of the revenue standard, adjusted operating income increased 11%.
Marsh's revenue in the first quarter was $1.7 billion, an increase of 2% on an underlying basis. In U.S./Canada, underlying revenue rose 3%. International operations underlying revenue growth was flat, reflecting underlying growth of 6% in Latin America, 4% in Asia Pacific and a decline of 2% in EMEA.
Guy Carpenter's revenue in the first quarter was $637 million, an increase of 7% on an underlying basis.
Consulting
Consulting revenue in the first quarter was $1.7 billion, an increase of 5% on an underlying basis. Operating income increased 10% to $247 million. Adjusted operating income increased 8% to $248 million compared with last year's first quarter. Excluding the impact of the revenue standard, adjusted operating income rose 10%.
Mercer's revenue was $1.2 billion in the first quarter, an increase of 5% on an underlying basis. Wealth, with revenue of $565 million, grew 3% on an underlying basis. Within Wealth, Investment Management & Related Services increased 15% on an underlying basis, while Defined Benefit & Administration declined 4%. Health revenue of $442 million was up 7% on an underlying basis and Career revenue of $164 million increased 4%.
Oliver Wyman Group's revenue was $497 million in the first quarter, an increase of 6% on an underlying basis.
Other Items
On March 1, 2018, the Company issued $600 million of 4.2% senior notes due in 2048, the net proceeds of which are intended for general corporate purposes. The Company repurchased 3.0 million shares of its common stock for $250 million in the first quarter.
Conference Call
A conference call to discuss first quarter 2018 results will be held today at 8:30 a.m. Eastern time. To participate in the teleconference, please dial +1 888 882 4478. Callers from outside the United States should dial +1 323 794 2149. The access code for both numbers is 5027620. The live audio webcast may be accessed at mmc.com. A replay of the webcast will be available approximately two hours after the event.
About Marsh & McLennan Companies
Marsh & McLennan (NYSE: MMC) is the world's leading professional services firm in the areas of risk, strategy and people. The company's nearly 65,000 colleagues advise clients in over 130 countries. With annual revenue over $14 billion, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading firms. Marshadvises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions. Guy Carpenter develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities. Mercer delivers advice and technology-driven solutions that help organizations meet the health, wealth and career needs of a changing workforce. Oliver Wyman serves as a critical strategic, economic and brand advisor to private sector and governmental clients. For more information, visit mmc.com, follow us on LinkedIn and Twitter @mmc_global or subscribe to BRINK.
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," "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:
Hot Features
Premium
-- the impact of any investigations, reviews, market studies or other
activity by regulatory or law enforcement authorities, including the
U.K. CMA investment consultants market investigation, the U.K. FCA
wholesale insurance broker market study and the ongoing investigations
by the European Commission;
-- the impact from lawsuits, other contingent liabilities and loss
contingencies arising from errors and omissions, breach of fiduciary
duty or other claims against us;
-- 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 our vendor
network and the need to patch software vulnerabilities;
-- our ability to compete effectively and adapt to changes in the
competitive environment, including to respond to disintermediation,
digital disruption and other types of innovation;
-- the financial and operational impact of complying with laws and
regulations where we operate, including cybersecurity and data privacy
regulations such as the E.U.'s General Data Protection Regulation,
anticorruption laws and trade sanctions regimes;
-- the regulatory, contractual and reputational risks that arise based on
insurance placement activities and various broker revenue streams;
-- the extent to which we manage risks associated with the various
services, including fiduciary and investments and other advisory
services;
-- our ability to successfully recover if we experience a business
continuity problem due to cyberattack, natural disaster or otherwise;
-- the impact of changes in tax laws, guidance and interpretations,
including related to certain provisions of the U.S. Tax Cuts and Jobs
Act, or disagreements with tax authorities;
-- the impact of fluctuations in foreign exchange and interest rates on
our results;
-- the impact of macroeconomic, political, regulatory or market
conditions on us, our clients and the industries in which we operate;
and
-- the impact of changes in accounting rules or in our accounting
estimates or assumptions, including the impact of the adoption of the
new revenue recognition, pension and lease accounting standards.
The factors identified above are not exhaustive. 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. 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. We undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made.
Marsh & McLennan Companies, Inc.
Consolidated Statements of Income
(In millions, except per share figures)
(Unaudited)
Three Months Ended
March 31,
2018 2017
Revenue $ 4,000 $ 3,503
Expense:
Compensation and Benefits 2,224 2,005
Other Operating Expenses 868 749
Operating Expenses 3,092 2,754
Operating Income 908 749
Other Net Benefit Credits (a) 66 60
Interest Income 3 2
Interest Expense (61 ) (58 )
Investment Income - -
Income Before Income Taxes 916 753
Income Tax Expense 220 175
Net Income Before Non-Controlling Interests 696 578
Less: Net Income Attributable 6 9
to Non-Controlling Interests
Net Income Attributable to the Company $ 690 $ 569
Net Income Per Share Attributable
to the Company:
- Basic $ 1.36 $ 1.10
- Diluted $ 1.34 $ 1.09
Average Number of Shares Outstanding
- Basic 508 515
- Diluted 514 522
Shares Outstanding at 3/31 508 515
(a) ASC 715, as amended, changes the presentation of net
periodic pension cost and net periodic postretirement
cost. The Company has restated prior years
and quarters for this new presentation.
Marsh & McLennan Companies, Inc.
Consolidated Statements of Income - Impact of Revenue Standard
(In millions, except per share figures)
(Unaudited)
The Company adopted the new revenue standard ("ASC 606")
using the modified retrospective method, applied
to all contracts. The guidance requires entities that
elected the modified retrospective method to
disclose the impact to financial statement line items
as a result of applying the new guidance (rather
than previous U.S. GAAP). The table below shows the
impacts on the consolidated statement of income.
Three Months Ended
March 31, 2018
AsReported RevenueStandardImpact Prior toAdoption
Revenue $ 4,000 $ (161 ) $ 3,839
Expense:
Compensation 2,224 (60 ) 2,164
and
Benefits
Other 868 - 868
Operating
Expenses
Operating 3,092 (60 ) 3,032
Expenses
Operating 908 (101 ) 807
Income
Other Net 66 - 66
Benefit
Credits
Interest 3 - 3
Income
Interest (61 ) - (61 )
Expense
Investment - - -
Income
Income 916 (101 ) 815
Before
Income
Taxes
Income Tax 220 (26 ) 194
Expense
Net Income 696 (75 ) 621
Before
Non-Controlling
Interests
Less: Net 6 - 6
Income
Attributable
to
Non-Controlling
Interests
Net $ 690 $ (75 ) $ 615
Income
Attributable
to
the Company
Net Income
Per Share
Attributable
to
the
Company:
- Basic $ 1.36 $ (0.15 ) $ 1.21
- Diluted $ 1.34 $ (0.15 ) $ 1.19
Average
Number
of Shares
Outstanding
- Basic 508 508 508
- Diluted 514 514 514
Shares 508 508 508
Outstanding
at 3/31
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Three Months Ended March 31
(Millions) (Unaudited)
Components of Revenue Change*
Three Months Ended %ChangeGAAPRevenue CurrencyImpact Acquisitions/Dispositions/Other Impact RevenueStandardImpact UnderlyingRevenue
March 31,
2018 2017
Risk and Insurance Services
Marsh $ 1,694 $ 1,596 6 % 4 % 3 % (3 )% 2 %
Guy Carpenter 637 385 66 % 2 % - 56 % 7 %
Subtotal 2,331 1,981 18 % 4 % 2 % 9 % 3 %
Fiduciary Interest Income 13 8
Total Risk and Insurance Services 2,344 1,989 18 % 4 % 2 % 8 % 3 %
Consulting
Mercer 1,171 1,077 9 % 4 % - (1 )% 5 %
Oliver Wyman Group 497 449 11 % 5 % - - 6 %
Total Consulting 1,668 1,526 9 % 5 % - - 5 %
Corporate / Eliminations (12 ) (12 )
Total Revenue $ 4,000 $ 3,503 14 % 4 % 1 % 5 % 4 %
Revenue Details
The following table provides more detailed revenue information for certain of the components presented above:
Components of Revenue Change*
Three Months Ended %ChangeGAAPRevenue CurrencyImpact Acquisitions/Dispositions/Other Impact RevenueStandardImpact UnderlyingRevenue
March 31,
2018 2017
Marsh:
EMEA $ 643 $ 589 9 % 10 % - - (2 )%
Asia Pacific 164 152 8 % 4 % - - 4 %
Latin America 84 80 5 % (1 )% - - 6 %
Total International 891 821 8 % 8 % - - -
U.S. / Canada 803 775 4 % - 6 % (6 )% 3 %
Total Marsh $ 1,694 $ 1,596 6 % 4 % 3 % (3 )% 2 %
Mercer:
Defined Benefit Consulting $ 339 $ 334 2 % 6 % - - (4 )%
& Administration
Investment Management 226 186 21 % 5 % 1 % - 15 %
& Related Services
Total Wealth 565 520 9 % 6 % - - 3 %
Health 442 415 6 % 3 % (2 )% (2 )% 7 %
Career 164 142 15 % 4 % 7 % - 4 %
Total Mercer $ 1,171 $ 1,077 9 % 4 % - (1 )% 5 %
Note:
Underlying revenue measures the change in revenue
using consistent currency exchange
rates, excluding the impact of certain items that affect comparability
such as: acquisitions, dispositions, transfers among businesses, changes
in estimate methodology and the impact of the new revenue standard.
* Components of revenue change may not add due to rounding.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Includes Revenue Standard Impact
Three Months Ended March 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 taxandadjusted 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 reconcileadjusted operating
income (loss)to GAAP operating income or loss, on a consolidated
and segment basis, for the three months ended March 31, 2018. The following
tables also present adjusted operating margin. For the three months
ended March 31, 2018,adjusted operating marginis calculated by dividingadjusted
operating incomeby consolidated or segment GAAP revenue.
Risk &InsuranceServices Consulting Corporate/Eliminations Total
Three Months Ended
March 31, 2018
Operating income $ 716 $ 247 $ (55 ) $ 908
(loss)
Add impact of
Noteworthy
Items:
Restructuring (a) 3 1 2 6
Adjustments to 4 - - 4
acquisition
related accounts
(b)
Operating income 7 1 2 10
adjustments
Adjusted operating $ 723 $ 248 $ (53 ) $ 918
income (loss)
Operating margin 30.5 % 14.8 % N/A 22.7 %
Adjusted operating 30.9 % 14.9 % N/A 23.0 %
margin
(a) Includes severance and related charges
from restructuring activities,
adjustments to restructuring liabilities for future rent under
non-cancellable leases and other real
estate costs, and restructuring
costs related to the integration of recent acquisitions.
(b) Primarily includes the change in fair value as measured each
quarter of contingent consideration related to acquisitions.
Note:
Comparative financial information for the three months
ended March 31, 2017 is presented on page 9.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures - Comparable Accounting Basis
Excludes the Revenue Standard Impact
Three Months Ended March 31
(Millions) (Unaudited)
As discussed earlier, the Company has adopted the new revenue standard
using the modified retrospective method, which requires the disclosure
of the impacts of the standard on each financial statement line item.
The non-GAAP measures below present an analysis of results
reflecting 2018 financial information excluding
the impact of the application
of ASC 606, to facilitate a comparison to the 2017 results.
Except for the adjustment for the effects of ASC 606 in 2018, these
non-GAAP measures are calculated as described on the prior page.
Risk &InsuranceServices Consulting Corporate/Eliminations Total
Three Months Ended
March 31, 2018
Operating income $ 610 $ 252 $ (55 ) $ 807
(loss)
without adoption
Add impact of
Noteworthy
Items:
Restructuring (a) 3 1 2 6
Adjustments to 4 - - 4
acquisition
related accounts
(b)
Operating income 7 1 2 10
adjustments
Adjusted operating $ 617 $ 253 $ (53 ) $ 817
income (loss)
Operating margin - 28.0 % 15.0 % N/A 21.0 %
Comparable basis
Adjusted operating 28.4 % 15.1 % N/A 21.3 %
margin
- Comparable basis
Three Months Ended
March 31, 2017
Operating income $ 568 $ 225 $ (44 ) $ 749
(loss)
Add (Deduct)
impact of
Noteworthy Items:
Restructuring (a) 4 3 2 9
Adjustments to (17 ) 1 - (16 )
acquisition
related accounts
(b)
Operating income (13 ) 4 2 (7 )
adjustments
Adjusted operating $ 555 $ 229 $ (42 ) $ 742
income (loss)
Operating margin 28.6 % 14.7 % N/A 21.4 %
Adjusted operating 27.9 % 15.0 % N/A 21.2 %
margin
(a) Includes severance and related charges
from restructuring activities,
adjustments to restructuring liabilities for future rent under
non-cancellable leases and other real
estate costs, and restructuring
costs related to the integration of 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
Includes the Revenue Standard Impact
Three Months Ended March 31
(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 and investments
gains or losses related to the impact
of mark-to-market adjustments on certain
equity securities previously recorded
to equity.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 ended March 31, 2018.
Three Months Ended
March 31, 2018
Amount Adjusted EPS
Income from continuing operations $ 696
Less: Non-controlling 6
interest, net of tax
Subtotal $ 690 $ 1.34
Operating income adjustments $ 10
Investments adjustment (a) 8
Impact of income taxes (4 )
Adjustments to provisional 3
2017 tax estimates (b)
17 0.04
Adjusted income, net of tax $ 707 $ 1.38
(a) Mark-to-market adjustments for investments classified as available
for sale under prior guidance were recorded to equity, net of tax.
Beginning January 1, 2018 such adjustments must be recorded as part
of investment income. Prior periods were not restated. The Company
will exclude such mark-to-market gains or losses from its calculation
of adjusted earnings per share. In the first quarter of 2018, the
Company recorded $8 million of mark-to-market losses which are included
in Investment Income in the Consolidated Statement of Income.
(b) Relates to adjustments to provisional
2017 year-end estimates of transition
taxes and U.S. deferred tax assets and liabilities from U.S. tax reform.
Note:
Comparative financial information for the three months
ended March 31, 2017 is presented on page 11.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures - Comparable Accounting Basis
Excludes the Revenue Standard Impact
Three Months Ended March 31
(Millions) (Unaudited)
As discussed earlier, the Company adopted the new revenue standard using
the modified retrospective method, which requires the disclosure of
the impacts of the standard on each financial statement line item. The
non-GAAP measures below present an analysis of results reflecting
2018 financial information excluding the impact of the application
of ASC 606, to facilitate a comparison to the 2017 results. Except
for the adjustment for the effects of ASC 606 in 2018, these non-GAAP
measures are calculated as described on the prior page.
Three Months Ended Three Months Ended
March 31, 2018 March 31, 2017
Amount AdjustedEPS Amount AdjustedEPS
Income $ 621 $ 578
from
continuing
operations,
(2018
prior to
the
impact
of ASC
606)
Less: 6 9
Non-controlling
interest,
net
of tax
Subtotal $ 615 $ 1.19 $ 569 $ 1.09
Operating $ 10 $ (7 )
income
adjustments
Investments 8 -
adjustment
(a)
Impact of (4 ) 1
income
taxes
Adjustments 3 -
to
provisional
2017
tax
estimates
(b)
17 0.04 (6 ) (0.01 )
Adjusted $ 632 $ 1.23 $ 563 $ 1.08
income,
net of tax
(a) Mark-to-market adjustments for investments classified as available
for sale under prior guidance were recorded to equity, net of tax.
Beginning January 1, 2018 such adjustments must be recorded as part
of investment income. Prior periods were not restated. The Company
will exclude such mark-to-market gains or losses from its calculation
of adjusted earnings per share. In the first quarter of 2018, the
Company recorded $8 million of mark-to-market losses which are included
in Investment Income in the Consolidated Statement of Income.
(b) Relates to adjustments to provisional
2017 year-end estimates of transition
taxes and U.S. deferred tax assets and liabilities from U.S. tax reform.
Marsh & McLennan
Companies, Inc.
Supplemental
Information
- Impact of
Revenue Recognition
Standard
Three Months Ended
March 31
(Millions) (Unaudited)
Three Months Ended March 31,
ExcludesImpact ofRevenueStandard
2018 2018 2017
Consolidated
Compensation $ 2,224 $ 2,164 $ 2,005
and Benefits
Other operating 868 868 749
expenses
Total Expenses $ 3,092 $ 3,032 $ 2,754
Depreciation and $ 80 $ 80 $ 80
amortization
expense
Identified intangible 45 45 40
amortization expense
Total $ 125 $ 125 $ 120
Stock option expense $ 14 $ 14 $ 14
Capital expenditures $ 58 $ 58 $ 62
Operating cash flows $ (364 ) $ (364 ) $ (399 )
Risk and Insurance
Services
Compensation $ 1,168 $ 1,106 $ 1,025
and Benefits
Other operating 460 460 396
expenses
Total Expenses $ 1,628 $ 1,566 $ 1,421
Depreciation and $ 37 $ 37 $ 35
amortization
expense
Identified intangible 37 37 32
amortization expense
Total $ 74 $ 74 $ 67
Consulting
Compensation $ 956 $ 958 $ 891
and Benefits
Other operating 465 465 410
expenses
Total Expenses $ 1,421 $ 1,423 $ 1,301
Depreciation and $ 25 $ 25 $ 27
amortization
expense
Identified intangible 8 8 8
amortization expense
Total $ 33 $ 33 $ 35
Note:
Effective January 1, 2018, the Company recorded the
cumulative effect of adopting the new revenue
standard, resulting in a $364 million increase
to the opening balance of retained
earnings, with offsetting increases/decreases
to other balance sheet accounts, including
accounts receivable, other current assets,
other assets and deferred income taxes.
Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions)
(Unaudited) December 31,2017
March 31,
2018
ASSETS
Current assets:
Cash and cash equivalents $ 1,168 $ 1,205
Net receivables 4,562 4,133
Other current assets 540 224
Total current assets 6,270 5,562
Goodwill and intangible assets 10,450 10,363
Fixed assets, net 713 712
Pension related assets 1,857 1,693
Deferred tax assets 554 669
Other assets 1,535 1,430
TOTAL ASSETS $ 21,379 $ 20,429
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 512 $ 262
Accounts payable and 2,343 2,083
accrued liabilities
Accrued compensation and 813 1,718
employee benefits
Accrued income taxes 261 199
Dividends payable 193 -
Total current liabilities 4,122 4,262
Fiduciary liabilities 5,140 4,847
Less - cash and investments held (5,140 ) (4,847 )
in a fiduciary capacity
- -
Long-term debt 5,815 5,225
Pension, post-retirement and 1,842 1,888
post-employment benefits
Liabilities for errors and omissions 312 301
Other liabilities 1,267 1,311
Total equity 8,021 7,442
TOTAL LIABILITIES AND EQUITY $ 21,379 $ 20,429
Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets - Impact of Revenue Standard
(Millions) (Unaudited)
As discussed earlier, the Company adopted the new revenue
standard (ASC 606) using the modified retrospective
method, applied to all contracts. The guidance requires
entities that elected the modified retrospective
method to disclose the impact to financial statement
line items as a result of applying the new guidance
(rather than previous U.S. GAAP). The table below shows
the impacts on the consolidated balance sheet.
March 31, 2018
As Reported Impact ofRevenueStandard Prior toAdoption
ASSETS
Current assets:
Cash and cash $ 1,168 $ - $ 1,168
equivalents
Net receivables 4,562 (242 ) 4,320
Other current 540 (294 ) 246
assets
Total current 6,270 (536 ) 5,734
assets
Goodwill and 10,450 - 10,450
intangible
assets
Fixed assets, 713 - 713
net
Pension related 1,857 - 1,857
assets
Deferred tax 554 119 673
assets
Other assets 1,535 (231 ) 1,304
TOTAL ASSETS $ 21,379 $ (648 ) $ 20,731
LIABILITIES
AND EQUITY
Current
liabilities:
Short-term debt $ 512 $ - $ 512
Accounts payable 2,343 (176 ) 2,167
and
accrued
liabilities
Accrued 813 - 813
compensation
and
employee
benefits
Accrued income 261 - 261
taxes
Dividends 193 - 193
payable
Total current 4,122 (176 ) 3,946
liabilities
Fiduciary 5,140 - 5,140
liabilities
Less - cash and (5,140 ) - (5,140 )
investments
held
in a fiduciary
capacity
- - -
Long-term debt 5,815 - 5,815
Pension, 1,842 - 1,842
post-retirement
and
post-employment
benefits
Liabilities 312 - 312
for errors
and omissions
Other 1,267 (33 ) 1,234
liabilities
Total equity 8,021 (439 ) 7,582
TOTAL $ 21,379 $ (648 ) $ 20,731
LIABILITIES
AND EQUITY
Media:Marsh & McLennan CompaniesLaura Schooler, +1 212-345-0370laura.schooler@mmc.comorInvestors:Marsh & McLennan CompaniesDan Farrell, +1 212-345-3713daniel.farrell@mmc.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20180426005780/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
April 26, 2018 07:00 ET (11:00 GMT)
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