10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2015

or

¨ Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from              to             

Commission File Number: 1-09761

ARTHUR J. GALLAGHER & CO.

(Exact name of registrant as specified in its charter)

Delaware	36-2151613
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Two Pierce Place, Itasca, Illinois 60143-3141

(Address of principal executive offices) (Zip code)

(630) 773-3800

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

The number of outstanding shares of the registrant’s common stock, $1.00 par value, as of June 30, 2015 was approximately 174,545,000.

Arthur J. Gallagher & Co.

Index

			Page No.
Part I.	Financial Information
	Item 1.	Financial Statements (Unaudited):
		Consolidated Statement of Earnings for the Three-month and Six-month Periods Ended June 30, 2015 and 2014		3
		Consolidated Statement of Comprehensive Earnings for the Three-month and Six-Month Periods Ended June 30, 2015 and 2014		4
		Consolidated Balance Sheet at June 30, 2015 and December 31, 2014		5
		Consolidated Statement of Cash Flows for the Six-month Periods Ended June 30, 2015 and 2014		6
		Consolidated Statement of Stockholders’ Equity for the Six-month Period Ended June 30, 2015		7
		Notes to June 30, 2015 Consolidated Financial Statements		8-31
		Report of Independent Registered Public Accounting Firm		32
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		33-59
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		59-60
	Item 4.	Controls and Procedures		61
Part II.	Other Information
	Item 1.	Legal Proceedings		61
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		62
	Item 6.	Exhibits		63
	Signature			64
	Exhibit Index			65

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Part I - Financial Information

Item 1. Financial Statements (Unaudited)

Arthur J. Gallagher & Co.

Consolidated Statement of Earnings

(Unaudited - in millions, except per share data)

	Three-month period ended June 30,						Six-month period ended June 30,
	2015			2014			2015			2014
Commissions	$	634.3		$	539.5		$	1,154.0		$	951.0
Fees		367.3			317.4			690.5			574.6
Supplemental commissions		34.8			27.9			61.7			53.3
Contingent commissions		22.8			21.8			67.3			54.0
Investment income		12.3			3.4			25.4			4.7
Gains on books of business sales		3.5			0.7			4.4			1.7
Revenues from clean coal activities		297.0			262.8			600.9			429.2
Other net (losses) revenues		(0.6	)		5.8			(1.5	)		25.8
Total revenues		1,371.4			1,179.3			2,602.7			2,094.3
Compensation		615.1			530.0			1,190.3			996.3
Operating		207.1			179.2			410.6			328.0
Cost of revenues from clean coal activities		306.8			270.5			616.1			441.5
Interest		26.0			21.2			51.6			37.4
Depreciation		22.8			16.6			44.3			31.4
Amortization		59.5			42.9			114.2			81.0
Change in estimated acquisition earnout payables		5.6			7.0			16.2			12.1
Total expenses		1,242.9			1,067.4			2,443.3			1,927.7
Earnings before income taxes		128.5			111.9			159.4			166.6
Benefit for income taxes		(19.1	)		(1.8	)		(20.6	)		(4.9	)
Net earnings		147.6			113.7			180.0			171.5
Net earnings attributable to noncontrolling interests		8.3			4.7			18.8			13.2
Net earnings attributable to controlling interests	$	139.3		$	109.0		$	161.2		$	158.3
Basic net earnings per share	$	0.82		$	0.71		$	0.96		$	1.10
Diluted net earnings per share		0.81			0.70			0.95			1.09
Dividends declared per common share		0.37			0.36			0.74			0.72

See notes to consolidated financial statements.

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Arthur J. Gallagher & Co.

Consolidated Statement of Comprehensive Earnings

(Unaudited - in millions)

	Three-month period ended June 30,						Six-month period ended June 30,
	2015			2014			2015			2014
Net earnings	$	147.6		$	113.7		$	180.0		$	171.5
Change in pension liability, net of taxes		—			0.7			0.7			0.9
Foreign currency translation		49.6			45.7			(85.2	)		54.5
Change in fair value of derivative investments, net of taxes		6.4			0.9			6.4			1.4
Comprehensive earnings		203.6			161.0			101.9			228.3
Comprehensive earnings (loss) attributable to noncontrolling interests		(1.4	)		(1.5	)		(5.4	)		(1.3	)
Comprehensive earnings attributable to controlling interests	$	205.0		$	162.5		$	107.3		$	229.6

See notes to consolidated financial statements.

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Arthur J. Gallagher & Co.

Consolidated Balance Sheet

(In millions)

	June 30, 2015			December 31, 2014
	(Unaudited)
Cash and cash equivalents	$	321.7		$	314.4
Restricted cash		1,443.8			1,367.6
Premiums and fees receivable		1,764.5			1,462.5
Other current assets		731.4			666.7
Total current assets		4,261.4			3,811.2
Fixed assets - net		198.2			195.4
Deferred income taxes		438.0			392.6
Other noncurrent assets		487.6			385.2
Goodwill - net		3,569.4			3,449.6
Amortizable intangible assets - net		1,761.5			1,776.0
Total assets	$	10,716.1		$	10,010.0
Premiums payable to insurance and reinsurance companies	$	2,901.1		$	2,623.3
Accrued compensation and other accrued liabilities		633.1			623.7
Unearned fees		63.8			66.1
Other current liabilities		60.8			61.7
Premium financing debt		91.6			127.9
Corporate related borrowings - current		155.0			140.0
Total current liabilities		3,905.4			3,642.7
Corporate related borrowings - noncurrent		2,125.0			2,125.0
Other noncurrent liabilities		974.2			937.2
Total liabilities		7,004.6			6,704.9
Stockholders’ equity:
Common stock - issued and outstanding 174.5 shares in 2015 and 164.6 shares in 2014		174.5			164.6
Capital in excess of par value		3,091.9			2,649.4
Retained earnings		710.8			676.0
Accumulated other comprehensive loss		(338.7	)		(260.6	)
Stockholders’ equity attributable to controlling interests		3,638.5			3,229.4
Stockholders’ equity attributable to noncontrolling interests		73.0			75.7
Total stockholders’ equity		3,711.5			3,305.1
Total liabilities and stockholders’ equity	$	10,716.1		$	10,010.0

See notes to consolidated financial statements.

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Arthur J. Gallagher & Co.

Consolidated Statement of Cash Flows

(Unaudited - in millions)

	Six-month period ended June 30,
	2015			2014
Cash flows from operating activities:
Net earnings	$	161.2		$	158.3
Adjustments to reconcile net earnings to net cash provided by operating activities:
Net gain on investments and other		(3.4	)		(24.9	)
Depreciation and amortization		158.5			112.4
Change in estimated acquisition earnout payables		16.2			12.1
Amortization of deferred compensation and restricted stock		11.3			11.2
Stock-based and other noncash compensation expense		5.1			5.1
Effect of changes in foreign exchange rates		0.2			(0.4	)
Net change in restricted cash		(81.8	)		244.5
Net change in premiums receivable		(258.6	)		(150.0	)
Net change in premiums payable		324.5			44.7
Net change in other current assets		(36.5	)		(57.3	)
Net change in accrued compensation and other accrued liabilities		10.4			53.3
Net change in fees receivable/unearned fees		(34.9	)		(20.2	)
Net change in income taxes payable		(26.5	)		0.7
Net change in deferred income taxes		(54.4	)		(46.4	)
Net change in other noncurrent assets and liabilities		(50.5	)		(154.1	)
Unrealized foreign currency remeasurement (loss) gain		(59.1	)		33.8
Net cash provided by operating activities		81.7			222.8
Cash flows from investing activities:
Net additions to fixed assets		(42.7	)		(42.1	)
Cash paid for acquisitions, net of cash acquired		(63.5	)		(1,402.0	)
Net proceeds from sales of operations/books of business		4.4			2.7
Net funding of investment transactions		(7.3	)		(20.0	)
Net cash used by investing activities		(109.1	)		(1,461.4	)
Cash flows from financing activities:
Proceeds from issuance of common stock		188.2			948.0
Tax impact from issuance of common stock		8.8			7.7
Payments for noncontrolling interests		(19.9	)		(16.0	)
Dividends paid		(125.3	)		(106.1	)
Net borrowings on premium financing debt facility		(29.6	)		139.0
Borrowings on line of credit facility		263.0			870.4
Repayments on line of credit facility		(248.0	)		(1,247.9	)
Net borrowings of corporate related long-term debt		—			1,300.0
Net cash provided by financing activities		37.2			1,895.1
Effect of changes in foreign exchange rates on cash and cash equivalents		(2.5	)		18.9
Net increase in cash and cash equivalents		7.3			675.4
Cash and cash equivalents at beginning of period		314.4			298.1
Cash and cash equivalents at end of period	$	321.7		$	973.5
Supplemental disclosures of cash flow information:
Interest paid	$	52.1		$	27.8
Income taxes paid		48.4			33.7

See notes to consolidated financial statements.

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Arthur J. Gallagher & Co.

Consolidated Statement of Stockholders’ Equity

(Unaudited - in millions)

	Common Stock				Capital in Excess of			Retained			Accumulated Other Comprehensive Earnings			Noncontrolling
	Shares		Amount		Par Value			Earnings			(Loss)			Interests			Total
Balance at December 31, 2014		164.6	$	164.6	$	2,649.4		$	676.0		$	(260.6	)	$	75.7		$	3,305.1
Net earnings		—		—		—			161.2			—			18.8			180.0
Change in pension liability, net of taxes of $0.5 million		—		—		—			—			0.7			—			0.7
Foreign currency translation		—		—		—			—			(85.2	)		(24.2	)		(109.4	)
Change in fair value of derivative instruments, net of taxes of $4.3 million		—		—		—			—			6.4			—			6.4
Compensation expense related to stock option plan grants		—		—		5.1			—			—			—			5.1
Tax impact from issuance of common stock		—		—		8.8			—			—			—			8.8
Common stock issued in:
Thirty-four purchase transactions		5.3		5.3		250.0			—			—			—			255.3
Stock option plans		1.2		1.2		32.2			—			—			—			33.4
Employee stock purchase plan		0.1		0.1		5.5			—			—			—			5.6
Deferred compensation and restricted stock		0.2		0.2		(5.2	)		—			—			—			(5.0	)
Other compensation expense		—		—		—			—			—			2.7			2.7
Stock issuance under dribble-out program		3.1		3.1		146.1			—			—			—			149.2
Cash dividends declared on common stock		—		—		—			(126.4	)		—			—			(126.4	)
Balance at June 30, 2015		174.5	$	174.5	$	3,091.9		$	710.8		$	(338.7	)	$	73.0		$	3,711.5

See notes to consolidated financial statements.

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Notes to June 30, 2015 Consolidated Financial Statements (Unaudited)

1. Nature of Operations and Basis of Presentation

Arthur J. Gallagher & Co. and its subsidiaries, collectively referred to herein as we, our, us or the company, provide insurance brokerage and risk management services to a wide variety of commercial, industrial, institutional and governmental organizations through three reportable operating segments. Commission and fee revenue generated by the brokerage segment is primarily related to the negotiation and placement of insurance for our clients. Fee revenue generated by the risk management segment is primarily related to claims management, information management, risk control consulting (loss control) services and appraisals in the property/casualty market. Investment income and other revenue are generated from our premium financing operations and our investment portfolio, which includes invested cash and restricted funds, as well as clean energy and other investments. We are headquartered in Itasca, Illinois, have operations in 31 countries and offer client-service capabilities in more than 140 countries globally through a network of correspondent insurance brokers and consultants.

We have prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements have been omitted pursuant to such rules and regulations. The unaudited consolidated financial statements included herein are, in the opinion of management, prepared on a basis consistent with our audited consolidated financial statements for the year ended December 31, 2014 and include all normal recurring adjustments necessary for a fair presentation of the information set forth. The quarterly results of operations are not necessarily indicative of the results of operations to be reported for subsequent quarters or the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014. In the preparation of our unaudited consolidated financial statements as of June 30, 2015, management evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued, for potential recognition or disclosure therein.

Reclassification - In first quarter 2015, we transferred management of a claims handling operation from the brokerage segment to the risk management segment. Total revenues related to this operation were $4.9 million and $4.7 million in second quarters 2015 and 2014, respectively, and $9.8 million and $8.9 million in the six-month periods ended June 30, 2015 and 2014, respectively. We made the applicable segment reclassifications to the prior-period amounts to conform to the current period presentation. The changes in the segment structure affect only the manner in which the results for the reportable segments were previously reported. These reclassifications did not impact our previously reported consolidated net earnings or financial position.

Correction of Immaterial Error - Effective January 1, 2015, we obtained control over a previously uncontrolled partially-owned subsidiary and beginning January 1, 2015 we began consolidating its financial results, which were previously accounted for using the equity method of accounting. In conjunction with this change, effective January 1, 2015, we also changed our consolidated statement of earnings and consolidated balance sheet to separately present the noncontrolling interests portions for other partially owned subsidiaries that we had been consolidating. In accordance with Accounting Standards Codification Topic No. 250, “Accounting Changes and Error Corrections” (ASC 250), we evaluated the materiality of these changes from quantitative and qualitative perspectives and concluded that the change in presentation was not material to any of our prior period financial statements and in particular, these changes had no impact on net earnings per share. We revised our consolidated statement of earnings for the three-month and six-month periods ended June 30, 2014 and the consolidated balance sheet as of December 31, 2014 to conform to the current period presentation. In prior reporting periods, we included such amounts in operating expenses and other non-current liabilities, respectively. Net earnings and total stockholders’ equity in prior reporting periods are now referred to as net earnings attributable to controlling interests and stockholders’ equity attributable to controlling interests, respectively, in the current period presentation. As stated above, this change in presentation had no impact on net earnings per share.

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The effect of the immaterial changes to the presentation of our consolidated statement of earnings for the three-month and six-month periods ended June 30, 2014 is summarized below:

	Three-month period ended June 30,						Six-month period ended June 30,
	As Previously Reported			As Restated			As Previously Reported			As Restated
Operating expense	$	184.0		$	179.2		$	341.2		$	328.0
Earnings before income taxes	$	107.1		$	111.9		$	153.4		$	166.6
Provision for income taxes		(1.9	)		(1.8	)		(4.9	)		(4.9	)
Net earnings	$	109.0			113.7		$	158.3			171.5
Net earnings attributable to noncontrolling interests					4.7						13.2
Net earnings attributable to controlling interests				$	109.0					$	158.3
Basic net earnings per share	$	0.71		$	0.71		$	1.10		$	1.10
Diluted net earnings per share	$	0.70		$	0.70		$	1.09		$	1.09

2. Effect of New Accounting Pronouncements

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (which we refer to as the FASB) issued new accounting guidance on revenue from contracts with customers, which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principal of the new guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. On July 9, 2015, the FASB decided to delay the effective date of the new revenue standard by one year. Reporting entities may choose to adopt the standard as of the original effective date. The FASB decided, based on its outreach to various stakeholders and the forthcoming amendments to the new revenue standard, that a deferral is necessary to provide adequate time to effectively implement the new revenue standard. This new guidance was originally effective for the first quarter of 2017 and early adoption is not permitted. With the one year deferral date, this new guidance is now effective for the first quarter of 2018, but it can be adopted earlier in first quarter of 2017. The guidance permits two methods of transition upon adoption; full retrospective and modified retrospective. Under the full retrospective method, prior periods would be restated under the new revenue standard, providing a comparable view across all periods presented. Under the modified retrospective method, prior periods would not be restated. Rather, revenues and other disclosures for pre-2017/2018 periods would be provided in the notes to the financial statements as previously reported under the current revenue standard. Management is currently reviewing the guidance, and the impact from its adoption on our consolidated financial statements cannot be determined at this time.

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3. Business Combinations

During the six-month period ended June 30, 2015, we acquired substantially all of the net assets of the following firms in exchange for our common stock and/or cash. These acquisitions have been accounted for using the acquisition method for recording business combinations (in millions except share data):

Name and Effective Date of Acquisition	Common Shares Issued		Common Share Value		Cash Paid		Accrued Liability		Escrow Deposited		Recorded Earnout Payable		Total Recorded Purchase Price		Maximum Potential Earnout Payable
	(000s)
e3 Financial, Inc. (EFI) January 1, 2015		2	$	—	$	9.1	$	—	$	0.1	$	0.7	$	9.9	$	7.0
Aequus Trade Credit LLC January 31, 2015		11		0.3		1.5		—		0.2		1.3		3.3		1.9
Cohen & Lord Insurance Brokers Limited February 1, 2015		77		3.6		2.1		—		—		—		5.7		—
Cohn Financial Group, LLC (CFG) February 1, 2015		407		19.0		—		—		0.3		4.2		23.5		14.0
Excel Insurance Services, Inc. February 1, 2015		52		1.5		7.3		—		1.0		—		9.8		—
Metcom Excess February 1, 2015		49		1.8		2.3		—		0.5		—		4.6		—
NationAir Aviation Insurance (NAI) February 1, 2015		288		12.3		—		—		1.3		—		13.6		—
Evolution Group of Companies February 6, 2015		101		4.7		0.9		0.5		0.4		2.9		9.4		3.1
Burns-Fazzi, Brock & Associates, LLC (BFB) April 1, 2015		709		33.4		—		—		1.0		7.4		41.8		27.0
Madison Risk & Insurance Services, Inc. (MRI) April 1, 2015		232		10.3		3.7		—		1.0		1.4		16.4		4.0
Integrated Healthcare Strategies, LLC (IHS) May 1, 2015		990		41.4		0.5		3.1		6.2		4.5		55.7		20.8
James R. Weir Insurance Agency, Inc. May 1, 2015		56		2.5		—		—		0.3		0.8		3.6		1.1

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Name and Effective Date of Acquisition	Common Shares Issued		Common Share Value		Cash Paid		Accrued Liability		Escrow Deposited		Recorded Earnout Payable		Total Recorded Purchase Price		Maximum Potential Earnout Payable
	(000s)
McDowall Associates Human Resources Consultants Ltd. May 1, 2015		34		1.5		0.6		0.6		0.1		0.5		3.3		2.5
Vital Benefits, Inc. May 1, 2015		118		5.6		—		—		0.1		—		5.7		—
Monument, LLC (ML) June 1, 2015		254		10.8		4.0		—		1.7		2.4		18.9		5.0
Solid Benefit Guidance Limited Liability Company (SBG) June 1, 2015		932		44.0		0.3		2.5		1.0		11.6		59.4		32.5
Eight other acquisitions completed in 2015		106		5.0		13.1		0.4		1.0		3.2		22.7		30.4
		4,418	$	197.7	$	45.4	$	7.1	$	16.2	$	40.9	$	307.3	$	149.3

On June 15, 2015, we signed a definitive agreement to acquire substantially all the assets of William Gallagher Associates Insurance Brokers, Inc. (which we refer to as WGA) headquartered in Boston, Massachusetts for approximately $150.0 million of consideration in a combination of cash and our common stock. WGA has annualized revenues of approximately $50.0 million. The transaction was subject to customary closing conditions and closed on July 31, 2015. WGA has approximately 200 employees and operations in Boston; Atlanta; New York City; Columbia, Maryland; Hartford, Connecticut and Princeton, New Jersey. Since the closing date of the WGA acquisition was July 31, 2015 (the date of this filing), it is not practical at this time for us to disclose the same type of information for this acquisition in the amount of detail provided in the tables above.

Common shares issued in connection with acquisitions are valued at closing market prices as of the effective date of the applicable acquisition. We record escrow deposits that are returned to us as a result of adjustments to net assets acquired as reductions of goodwill when the escrows are settled. The maximum potential earnout payables disclosed in the foregoing table represent the maximum amount of additional consideration that could be paid pursuant to the terms of the purchase agreement for the applicable acquisition. The amounts recorded as earnout payables, which are primarily based upon the estimated future operating results of the acquired entities over a two- to three-year period subsequent to the acquisition date, are measured at fair value as of the acquisition date and are included on that basis in the recorded purchase price consideration in the foregoing table. We will record subsequent changes in these estimated earnout obligations, including the accretion of discount, in our consolidated statement of earnings when incurred.

The fair value of these earnout obligations is based on the present value of the expected future payments to be made to the sellers of the acquired entities in accordance with the provisions outlined in the respective purchase agreements, which is a Level 3 fair value measurement. In determining fair value, we estimated the acquired entity’s future performance using financial projections developed by management for the acquired entity and market participant assumptions that were derived for revenue growth and/or profitability. Revenue growth rates generally ranged from 6.5% to 12.0% for our 2015 acquisitions. We estimated future payments using the earnout formula and performance targets specified in each purchase agreement and these financial projections. We then discounted these payments to present value using a risk-adjusted rate that takes into consideration market-based rates of return that reflect the ability of the acquired entity to achieve the targets. These discount rates approximated 8.5% for all of our 2015 acquisitions. Changes in financial projections, market participant assumptions for revenue growth and/or profitability, or the risk-adjusted discount rate, would result in a change in the fair value of recorded earnout obligations.

During the three-month periods ended June 30, 2015 and 2014, we recognized $4.3 million and $3.4 million, respectively, of expense in our consolidated statement of earnings related to the accretion of the discount recorded for earnout obligations in connection with our acquisitions. During the six-month periods ended June 30, 2015 and 2014, we recognized $8.5 million and $6.7 million, respectively, of expense in our consolidated statement of earnings related to the accretion of the discount recorded for earnout obligations in connection with our acquisitions. In addition, during the three-month periods ended June 30, 2015 and 2014, we recognized $1.3 million and $3.6 million of expense, respectively, related to net adjustments in the estimated fair value of earnout obligations in connection with

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revised projections of future performance for 24 and 18 acquisitions, respectively. During the six-month periods ended June 30, 2015 and 2014, we recognized $7.7 million and $5.4 million of expense, respectively, related to net adjustments in the estimated fair value of earnout obligations in connection with revised projections of future performance for 43 and 35 acquisitions, respectively. The aggregate amount of maximum earnout obligations related to acquisitions was $596.6 million as of June 30, 2015, of which $217.4 million was recorded in our consolidated balance sheet as of June 30, 2015, based on the estimated fair value of the expected future payments to be made.

The following is a summary of the estimated fair values of the net assets acquired at the date of each acquisition made in the six-month period ended June 30, 2015 (in millions):

	EFI		CFG		NAI		BFB		MRI		IHS		ML		SBG		Sixteen Other Acquisitions		Total
Cash	$	—	$	0.1	$	—	$	0.1	$	0.1	$	—	$	—	$	—	$	3.0	$	3.3
Other current assets		—		—		4.7		0.3		0.6		8.3		0.2		1.4		18.4		33.9
Fixed assets		—		—		—		—		—		1.1		—		—		5.5		6.6
Noncurrent assets		—		—		—		—		—		—		—		—		0.6		0.6
Goodwill		6.1		11.3		9.8		18.5		6.3		24.8		5.7		30.9		30.0		143.4
Expiration lists		3.7		12.0		5.2		23.0		9.9		24.8		13.0		27.7		31.1		150.4
Non-compete agreements		0.1		0.1		0.2		0.1		0.1		0.1		—		0.1		0.8		1.6
Total assets acquired		9.9		23.5		19.9		42.0		17.0		59.1		18.9		60.1		89.4		339.8
Current liabilities		—		—		4.2		0.2		0.6		3.4		—		0.7		16.3		25.4
Noncurrent liabilities		—		—		2.1		—		—		—		—		—		5.0		7.1
Total liabilities assumed		—		—		6.3		0.2		0.6		3.4		—		0.7		21.3		32.5
Total net assets acquired	$	9.9	$	23.5	$	13.6	$	41.8	$	16.4	$	55.7	$	18.9	$	59.4	$	68.1	$	307.3

Among other benefits, these acquisitions allow us to expand into desirable geographic locations, further extend our presence in the retail and wholesale insurance brokerage services and risk management industries and increase the volume of general services currently provided. The excess of the purchase price over the estimated fair value of the tangible net assets acquired at the acquisition date was allocated to goodwill, expiration lists and non-compete agreements in the amounts of $143.4 million, $150.4 million and $1.6 million, respectively, within the brokerage and risk management segments.

Provisional estimates of fair value are established at the time of each acquisition and are subsequently reviewed within the first year of operations subsequent to the acquisition date to determine the necessity for adjustments. The fair value of the tangible assets and liabilities for each applicable acquisition at the acquisition date approximated their carrying values. The fair value of expiration lists was established using the excess earnings method, which is an income approach based on estimated financial projections developed by management for each acquired entity using market participant assumptions. Revenue growth and attrition rates generally ranged from 2.0% to 3.0% and 5.0% to 13.0% for our 2014 and 2015 acquisitions for which valuations were performed in 2015. We estimate the fair value as the present value of the benefits anticipated from ownership of the subject customer list in excess of returns required on the investment in contributory assets necessary to realize those benefits. The rate used to discount the net benefits was based on a risk-adjusted rate that takes into consideration market-based rates of return and reflects the risk of the asset relative to the acquired business. These discount rates generally ranged from 11.0% to 13.0% for our 2014 and 2015 acquisitions for which valuations were performed in 2015. The fair value of non-compete agreements was established using the profit differential method, which is an income approach based on estimated financial projections developed by management for the acquired company using market participant assumptions and various non-compete scenarios.

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Expiration lists, non-compete agreements and trade names related to our acquisitions are amortized using the straight-line method over their estimated useful lives (three to fifteen years for expiration lists, three to five years for non-compete agreements and five to fifteen years for trade names), while goodwill is not subject to amortization. We use the straight-line method to amortize these intangible assets because the pattern of their economic benefits cannot be reasonably determined with any certainty. We review all of our intangible assets for impairment periodically (at least annually) and whenever events or changes in business circumstances indicate that the carrying value of the assets may not be recoverable. In reviewing intangible assets, if the fair value were less than the carrying amount of the respective (or underlying) asset, an indicator of impairment would exist and further analysis would be required to determine whether or not a loss would need to be charged against current period earnings as a component of amortization expense. Based on the results of impairment reviews during the six-month period ended June 30, 2015, we wrote off $0.5 million of amortizable intangible assets related to the brokerage segment. Based on the results of impairment reviews during the six-month period ended June 30, 2014, we wrote off $0.6 million of amortizable intangible assets related to the brokerage segment.

Of the $150.4 million of expiration lists and $1.6 million of non-compete agreements related to our acquisitions made during the six-month period ended June 30, 2015, $18.2 million and $0.6 million, respectively, is not expected to be deductible for income tax purposes. Accordingly, we recorded a deferred tax liability of $5.3 million, and a corresponding amount of goodwill, in the six-month period ended June 30, 2015 related to nondeductible amortizable intangible assets.

Our consolidated financial statements for the six-month period ended June 30, 2015 include the operations of the acquired entities from their respective acquisition dates. The following is a summary of the unaudited pro forma historical results, as if these entities had been acquired at January 1, 2014 (in millions, except per share data):

	Three-month period ended June 30,				Six-month period ended June 30,
	2015		2014		2015		2014
Total revenues	$	1,379.3	$	1,209.5	$	2,637.6	$	2,155.6
Net earnings attributable to noncontrolling interests		139.4		110.7		162.7		162.3
Basic net earnings per share		0.81		0.70		0.95		1.09
Diluted net earnings per share		0.80		0.69		0.95		1.08

The unaudited pro forma results above have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had these acquisitions occurred at January 1, 2014, nor are they necessarily indicative of future operating results. Annualized revenues of entities acquired during the six-month period ended June 30, 2015 totaled approximately $123.5 million. For the six-month period ended June 30, 2015, total revenues and net earnings recorded in our unaudited consolidated statement of earnings related to our acquisitions made during the six-month period ended June 30, 2015 in the aggregate, were $26.9 million and $2.0 million, respectively.

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4. Other Current Assets

Major classes of other current assets consist of the following (in millions):

	June 30, 2015		December 31, 2014
Premium finance advances and loans	$	219.8	$	232.6
Accrued supplemental, direct bill and other receivables		193.7		156.3
Refined coal production related receivables		130.4		103.5
Deferred income taxes - current		106.7		102.2
Prepaid expenses		80.8		72.1
Total other current assets	$	731.4	$	666.7

The premium finance loans represent short-term loans which we make to many of our brokerage related clients and other non-brokerage clients to finance their premiums paid to insurance carriers. These premium finance loans are primarily generated by the Crombie/OAMPS operations which were acquired on June 16, 2014. Financing receivables are carried at amortized cost. Given that these receivables are collateralized, carry a fairly rapid delinquency period of only seven days post payment date, and that contractually the underlying insurance policies will be cancelled within one month of the payment due date in normal course, there historically has been a minimal risk of not receiving payment and therefore we do not maintain any significant allowance for losses against this balance.

5. Intangible Assets

The carrying amount of goodwill at June 30, 2015 and December 31, 2014 allocated by domestic and foreign operations is as follows (in millions):

	Brokerage		Risk Management		Corporate		Total
At June 30, 2015
United States	$	1,783.8	$	23.5	$	—	$	1,807.3
United Kingdom		825.0		3.8		—		828.8
Canada		316.3		—		—		316.3
Australia		372.3		—		—		372.3
Other foreign, principally New Zealand		244.4		0.3		—		244.7
Total goodwill - net	$	3,541.8	$	27.6	$	—	$	3,569.4
At December 31, 2014
United States	$	1,652.6	$	20.2	$	—	$	1,672.8
United Kingdom		818.7		1.9		—		820.6
Canada		318.5		—		—		318.5
Australia		336.8		—		—		336.8
Other foreign, principally New Zealand		300.9		—		—		300.9
Total goodwill - net	$	3,427.5	$	22.1	$	—	$	3,449.6

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The changes in the carrying amount of goodwill for the six-month period ended June 30, 2015 are as follows (in millions):

	Brokerage			Risk Management		Corporate		Total
Balance as of December 31, 2014	$	3,427.5		$	22.1	$	—	$	3,449.6
Goodwill acquired during the period		141.3			2.1		—		143.4
Goodwill related to transfer of operations between segments		(3.4	)		3.4		—		—
Goodwill adjustments due to appraisals and other acquisition adjustments		32.6			—		—		32.6
Foreign currency translation adjustments during the period		(56.2	)		—		—		(56.2	)
Balance as of June 30, 2015	$	3,541.8		$	27.6	$	—	$	3,569.4

Major classes of amortizable intangible assets at June 30, 2015 and December 31, 2014 consist of the following (in millions):

	June 30, 2015			December 31, 2014
Expiration lists	$	2,560.1		$	2,461.9
Accumulated amortization - expiration lists		(823.3	)		(719.3	)
		1,736.8			1,742.6
Non-compete agreements		42.7			43.2
Accumulated amortization - non-compete agreements		(32.5	)		(29.5	)
		10.2			13.7
Trade names		27.2			29.7
Accumulated amortization - trade names		(12.7	)		(10.0	)
		14.5			19.7
Net amortizable assets	$	1,761.5		$	1,776.0

Estimated aggregate amortization expense for each of the next five years is as follows:

2015 (remaining six months)	$	114.9
2016		224.2
2017		213.6
2018		199.6
2019		186.3
Total	$	938.6

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6. Credit and Other Debt Agreements

The following is a summary of our corporate and other debt (in millions):

	June 30,		December 31,
	2015		2014
Note Purchase Agreements:
Semi-annual payments of interest, fixed rate of 6.44%, balloon due 2017	$	300.0	$	300.0
Semi-annual payments of interest, fixed rate of 5.85%, $50 million due in 2016, 2018 and 2019		150.0		150.0
Semi-annual payments of interest, fixed rate of 2.80%, balloon due 2018		50.0		50.0
Semi-annual payments of interest, fixed rate of 3.20%, balloon due 2019		50.0		50.0
Semi-annual payments of interest, fixed rate of 3.99%, balloon due 2020		50.0		50.0
Semi-annual payments of interest, fixed rate of 3.48%, balloon due 2020		50.0		50.0
Semi-annual payments of interest, fixed rate of 5.18%, balloon due 2021		75.0		75.0
Semi-annual payments of interest, fixed rate of 3.69%, balloon due 2022		200.0		200.0
Semi-annual payments of interest, fixed rate of 5.49%, balloon due 2023		50.0		50.0
Semi-annual payments of interest, fixed rate of 4.13%, balloon due 2023		200.0		200.0
Semi-annual payments of interest, fixed rate of 4.58%, balloon due 2024		325.0		325.0
Semi-annual payments of interest, fixed rate of 4.31%, balloon due 2025		200.0		200.0
Semi-annual payments of interest, fixed rate of 4.73%, balloon due 2026		175.0		175.0
Semi-annual payments of interest, fixed rate of 4.36%, balloon due 2026		150.0		150.0
Semi-annual payments of interest, fixed rate of 4.98%, balloon due 2029		100.0		100.0
Total Note Purchase Agreements		2,125.0		2,125.0
Credit Agreement:
Periodic payments of interest and principal, prime or LIBOR plus up to 1.45%, expires September 19, 2018		155.0		140.0
Premium Financing Debt Facility - expires May 18, 2017:
Periodic payments of interest and principal, Interbank rates plus 1.05% for Facility B; plus 0.55% for Facilities C and D
Facility B
AUD denominated tranche		61.8		95.0
NZD denominated tranche		8.6		17.8
Facility C and D
AUD denominated tranche		14.3		7.7
NZD denominated tranche		6.9		7.4
Total Premium Financing Debt Facility		91.6		127.9
Total corporate and other debt	$	2,371.6	$	2,392.9

Note Purchase Agreements - We are a party to an amended and restated note purchase agreement dated December 19, 2007, with certain accredited institutional investors, pursuant to which we issued and sold $300.0 million in aggregate principal amount of our 6.44% Senior Notes, Series B, due August 3, 2017, in a private placement. These notes require semi-annual payments of interest that are due in February and August of each year.

We are a party to a note purchase agreement dated November 30, 2009, with certain accredited institutional investors, pursuant to which we issued and sold $150.0 million in aggregate principal amount of our 5.85% Senior Notes, Series C, due in three equal installments on November 30, 2016, November 30, 2018 and November 30, 2019, in a private placement. These notes require semi-annual payments of interest that are due in May and November of each year.

We are a party to a note purchase agreement dated February 10, 2011, with certain accredited institutional investors, pursuant to which we issued and sold $75.0 million in aggregate principal amount of our 5.18% Senior Notes, Series D, due February 10, 2021 and $50.0 million in aggregate principal amount of our 5.49% Senior Notes, Series E, due February 10, 2023, in a private placement. These notes require semi-annual payments of interest that are due in February and August of each year.

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We are a party to a note purchase agreement dated July 10, 2012, with certain accredited institutional investors, pursuant to which we issued and sold $50.0 million in aggregate principal amount of our 3.99% Senior Notes, Series F, due July 10, 2020, in a private placement. These notes require semi-annual payments of interest that are due in January and July of each year.

We are a party to a note purchase agreement dated June 14, 2013, with certain accredited institutional investors, pursuant to which we issued and sold $200.0 million in aggregate principal amount of our 3.69% Senior Notes, Series G, due June 14, 2022, in a private placement. These notes require semi-annual payments of interest that are due in June and December of each year.

We are a party to a note purchase agreement dated December 20, 2013, with certain accredited institutional investors, pursuant to which we issued and sold $325.0 million in aggregate principal amount of our 4.58% Senior Notes, Series H, due February 27, 2024, $175.0 million in aggregate principal amount of our 4.73% Senior Notes, Series I, due February 27, 2026 and $100.0 million in aggregate principal amount of our 4.98% Senior Notes, Series J, due February 27, 2029. These notes require semi-annual payments of interest that are due in February and August of each year. The funding of this note purchase agreement occurred on February 27, 2014. We incurred approximately $1.4 million of debt acquisition costs that was capitalized and will be amortized on a pro rata basis over the life of the debt.

We are a party to a note purchase agreement dated June 24, 2014, with certain accredited institutional investors, pursuant to which we issued and sold $50.0 million in aggregate principal amount of our 2.80% Senior Notes, Series K, due June 24, 2018, $50.0 million in aggregate principal amount of our 3.20% Senior Notes, Series L, due June 24, 2019, $50.0 million in aggregate principal amount of our 3.48% Senior Notes, Series M, due June 24, 2020, $200.0 million in aggregate principal amount of our 4.13% Senior Notes, Series N, due June 24, 2023, $200.0 million in aggregate principal amount of our 4.31% Senior Notes, Series O, due June 24, 2025 and $150.0 million in aggregate principal amount of our 4.36% Senior Notes, Series P, due June 24, 2026. These notes require semi-annual payments of interest that are due in June and December of each year. We incurred approximately $2.6 million of debt acquisition costs that was capitalized and will be amortized on a pro rata basis over the life of the debt.

Under the terms of the note purchase agreements described above, we may redeem the notes at any time, in whole or in part, at 100% of the principal amount of such notes being redeemed, together with accrued and unpaid interest and a “make-whole amount.” The “make-whole amount” is derived from a net present value computation of the remaining scheduled payments of principal and interest using a discount rate based on U.S. Treasury yields plus 0.5% and is designed to compensate the purchasers of the notes for their investment risk in the event prevailing interest rates at the time of prepayment are less favorable than the interest rates under the notes. We do not currently intend to prepay any of the notes.

The note purchase agreements described above contain customary provisions for transactions of this type, including representations and warranties regarding us and our subsidiaries and various financial covenants, including covenants that require us to maintain specified financial ratios. We were in compliance with these covenants as of June 30, 2015. The note purchase agreements also provide customary events of default, generally with corresponding grace periods, including, without limitation, payment defaults with respect to the notes, covenant defaults, cross-defaults to other agreements evidencing our or our subsidiaries’ indebtedness, certain judgments against us or our subsidiaries and events of bankruptcy involving us or our material subsidiaries.

The notes issued under the note purchase agreements are senior unsecured obligations of ours and rank equal in right of payment with our Credit Agreement discussed below.

Credit Agreement - On September 19, 2013, we entered into a $600.0 million unsecured multicurrency credit agreement (which we refer to as the Credit Agreement), which expires on September 19, 2018, with a group of fifteen financial institutions. The Credit Agreement provides for a revolving credit commitment of up to $600.0 million, of which up to $75.0 million may be used for issuances of standby or commercial letters of credit and up to $50.0 million may be used for the making of swing loans, as defined in the Credit Agreement. We may from time to time request, subject to certain conditions, an increase in the revolving credit commitment up to a maximum aggregate revolving credit commitment of $850.0 million.

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The Credit Agreement provides that we may elect that each borrowing in U.S. dollars be either base rate loans or Eurocurrency loans, as defined in the Credit Agreement. All loans denominated in currencies other than U.S. dollars will be Eurocurrency loans. Interest rates on base rate loans and outstanding drawings on letters of credit in U.S. dollars under the Credit Agreement are based on the base rate, as defined in the Credit Agreement. Interest rates on Eurocurrency loans or outstanding drawings on letters of credit in currencies other than U.S. dollars are based on an adjusted London Interbank Offered Rate (which we refer to as LIBOR), as defined in the Credit Agreement, plus a margin of 0.85%, 0.95%, 1.05%, 1.25% or 1.45%, depending on the financial leverage ratio we maintain. Interest rates on swing loans are based, at our election, on either the base rate, as defined in the Credit Agreement, or such alternate rate as may be quoted by the lead lender. The annual facility fee related to the Credit Agreement is 0.15%, 0.175%, 0.20%, 0.25% or 0.30% of the used and unused portions of the revolving credit commitment, depending on the financial leverage ratio we maintain. In connection with entering into the Credit Agreement, we incurred approximately $2.1 million of debt acquisition costs that were capitalized and will be amortized on a pro rata basis over the term of the Credit Agreement.

The terms of the Credit Agreement include various financial covenants, including covenants that require us to maintain specified financial ratios. We were in compliance with these covenants as of June 30, 2015. The Credit Agreement also includes customary provisions for transactions of this type, including events of default, with corresponding grace periods and cross-defaults to other agreements evidencing our indebtedness.

At June 30, 2015, $22.6 million of letters of credit (for which we had $11.2 million of liabilities recorded at June 30, 2015) were outstanding under the Credit Agreement. There were $155.0 million of borrowings outstanding under the Credit Agreement at June 30, 2015. Accordingly, as of June 30, 2015, $422.4 million remained available for potential borrowings under the Credit Agreement, of which $52.4 million was available for additional letters of credit.

Premium Financing Debt Facility - On May 18, 2015 we entered into a Syndicated Facility Agreement, revolving loan facility, which we refer to as the Premium Financing Debt Facility, that provides funding for the three acquired Australian (AU) and New Zealand (NZ) premium finance subsidiaries. The Premium Financing Debt Facility is comprised of: (i) Facility B, which is separated into AU$150.0 million and NZ$35.0 million tranches, (ii) Facility C, an AU$25.0 million equivalent multi-currency overdraft tranche and (iii) Facility D, a NZ$15.0 million equivalent multi-currency overdraft tranche. The Premium Financing Debt Facility expires May 18, 2017. This facility replaced a previous facility which was originally entered into on June 16, 2014.

The interest rates on Facility B are Interbank rates, which vary by tranche, duration and currency, plus a margin of 1.05%. The interest rates on Facilities C and D are 30 day Interbank rates, plus a margin of 0.55%. The annual fee for Facility B is 0.4725% of the undrawn commitments for the two tranches of the facility. The annual fee for Facilities C and D is 0.50% of the total commitments of the facilities.

The terms of our Premium Financing Debt Facility include various financial covenants, including covenants that require us to maintain specified financial ratios. We were in compliance with these covenants as of June 30, 2015. The Premium Financing Debt Facility also includes customary provisions for transactions of this type, including events of default, with corresponding grace periods and cross-defaults to other agreements evidencing our indebtedness. Facilities B, C and D are secured by the premium finance receivables of the Australian and New Zealand premium finance subsidiaries.

At June 30, 2015, AU$80.0 million and NZ$12.5 million of borrowings were outstanding under Facility B, AU$18.5 million of borrowings were outstanding under Facility C and NZ$10.1 million of borrowings were outstanding under Facility D. Accordingly, as of June 30, 2015, AU$70.0 million and NZ$22.5 million remained available for potential borrowing under Facility B, and AU$6.5 million and NZ$4.9 million under Facilities C and D, respectively.

See Note 13 to these unaudited consolidated financial statements for additional discussion on our contractual obligations and commitments as of June 30, 2015.

The aggregate estimated fair value of the $2,125.0 million in debt under the note purchase agreements at June 30, 2015 was $2,243.7 million due to the long-term duration and fixed interest rates associated with these debt obligations. No active or observable market exists for our private placement long-term debt. Therefore, the estimated fair value of this debt is based on discounted future cash flows, which is a Level 3 fair value measurement, using current interest rates available for debt with similar terms and remaining maturities. See Note 1, Fair Value of Financial Instruments, to our consolidated financial statements included in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2014. The estimated fair value of this debt is based on the income valuation approach, which is a valuation technique that converts future amounts (for example, cash flows or income and expenses) to a single current (that is, discounted) amount. The fair value measurement is determined on the basis of the value indicated by current

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market expectations about those future amounts. Because our debt issuances generate a measurable income stream for each lender, the income approach was deemed to be an appropriate methodology for valuing the private placement long-term debt. The methodology used calculated the original deal spread at the time of each debt issuance, which was equal to the difference between the yield of each issuance (the coupon rate) and the equivalent benchmark treasury yield at that time. The market spread as of the valuation date was calculated, which is equal to the difference between an index for investment grade insurers and the equivalent benchmark treasury yield today. An implied premium or discount to the par value of each debt issuance based on the difference between the origination deal spread and market as of the valuation date was then calculated. The index we relied on to represent investment graded insurers was the Bloomberg Valuation Services (BVAL) U.S. Insurers BBB index. This index is comprised primarily of insurance brokerage firms and was representative of the industry in which we operate. For the purposes of our analysis, the average BBB rate was assumed to be the appropriate borrowing rate for us based on our current estimated credit rating. The estimated fair value of the $155.0 million of borrowings outstanding under our Credit Agreement approximates their carrying value due to their short-term duration and variable interest rates. The estimated fair value of the $91.6 million of borrowings outstanding under our Premium Financing Debt Facility approximates their carrying value due to their short-term duration and variable interest rates.

7. Earnings Per Share

The following table sets forth the computation of basic and diluted net earnings per share (in millions, except per share data):

	Three-month period ended June 30,				Six-month period ended June 30,
	2015		2014		2015		2014
Net earnings attributable to controlling interests	$	139.3	$	109.0	$	161.2	$	158.3
Weighted average number of common shares outstanding		170.6		154.3		168.1		144.2
Dilutive effect of stock options using the treasury stock method		1.1		1.4		1.2		1.6
Weighted average number of common and common equivalent shares outstanding		171.7		155.7		169.3		145.8
Basic net earnings per share	$	0.82	$	0.71	$	0.96	$	1.10
Diluted net earnings per share	$	0.81	$	0.70	$	0.95	$	1.09

Options to purchase 3.9 million and 1.9 million shares of common stock were outstanding at June 30, 2015 and 2014, respectively, but were not included in the computation of the dilutive effect of stock options for the three-month periods then ended. Options to purchase 3.1 million and 1.2 million shares of common stock were outstanding at June 30, 2015 and 2014, respectively, but were not included in the computation of the dilutive effect of stock options for the six-month periods then ended. These stock options were excluded from the computation because the options’ exercise prices were greater than the average market price of our common shares during the respective period, and therefore, would be anti-dilutive to earnings per share under the treasury stock method.

8. Stock Option Plans

Long-Term Incentive Plan

On May 13, 2014, our stockholders approved the Arthur J. Gallagher 2014 Long-Term Incentive Plan (which we refer to as the LTIP), which replaced our previous stockholder-approved Arthur J. Gallagher & Co. 2011 Long-Term Incentive Plan (which we refer to as the 2011 LTIP). The LTIP term began May 13, 2014 and terminates on the date of the annual meeting of stockholders in 2021, unless terminated earlier by our board of directors. All of our officers, employees and non-employee directors are eligible to receive awards under the LTIP. The compensation committee of our board of directors determines the participants under the LTIP. The LTIP provides for non-qualified and incentive stock options, stock appreciation rights, restricted stock, restricted stock units and performance units, any or all of which may be made contingent upon the achievement of performance criteria. A stock appreciation right entitles the holder to receive, upon exercise and subject to withholding taxes, cash or shares of our common stock (which may be restricted stock) with a value equal to the difference between the fair market value of our common stock on the exercise date and the base price of the stock appreciation right. Subject to the LTIP limits, the compensation committee has the discretionary authority to determine the size of an award.

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Shares of our common stock available for issuance under the LTIP include authorized and unissued shares of common stock or authorized and issued shares of common stock reacquired and held as treasury shares or otherwise, or a combination thereof. The number of available shares will be reduced by the aggregate number of shares that become subject to outstanding awards granted under the LTIP. To the extent that shares subject to an outstanding award granted under either the LTIP or the 2011 LTIP are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or by reason of the settlement of such award in cash, then such shares will again be available for grant under the LTIP. Shares withheld to satisfy tax withholding requirements upon the vesting of awards other than stock options and stock appreciation rights will also be available for grant under the LTIP. Shares that are subject to a stock appreciation right and were not issued upon the net settlement or net exercise of such stock appreciation right, shares that are used to pay the exercise price of an option, delivered to or withheld by us to pay withholding taxes related to stock options or stock appreciation rights, and shares that are purchased on the open market with the proceeds of an option exercise, may not again be made available for issuance.

The maximum number of shares available under the LTIP for restricted stock, restricted stock unit awards and performance unit awards settled with stock (i.e., all awards other than stock options and stock appreciation rights) is 2.0 million at June 30, 2015. To the extent necessary to be qualified performance-based compensation under Section 162(m) of the Internal Revenue Code (which we refer to as the IRC): (i) the maximum number of shares with respect to which options or stock appreciation rights or a combination thereof that may be granted during any fiscal year to any person is 200,000; (ii) the maximum number of shares with respect to which performance-based restricted stock or restricted stock units that may be granted during any fiscal year to any person is 100,000; (iii) the maximum amount that may be payable with respect to cash-settled performance units granted during any fiscal year to any person is $5.0 million; and (iv) the maximum number of shares with respect to which stock-settled performance units may be granted during any fiscal year to any person is 100,000.

The LTIP provides for the grant of stock options, which may be either tax-qualified incentive stock options or non-qualified options and stock appreciation rights. The compensation committee determines the period for the exercise of a non-qualified stock option, tax-qualified incentive stock option or stock appreciation right, provided that no option can be exercised later than seven years after its date of grant. The exercise price of a non-qualified stock option or tax-qualified incentive stock option and the base price of a stock appreciation right cannot be less than 100% of the fair market value of a share of our common stock on the date of grant, provided that the base price of a stock appreciation right granted in tandem with an option will be the exercise price of the related option.

Upon exercise, the option exercise price may be paid in cash, by the delivery of previously owned shares of our common stock, through a net-exercise arrangement, or through a broker-assisted cashless exercise arrangement. The compensation committee determines all of the terms relating to the exercise, cancellation or other disposition of an option or stock appreciation right upon a termination of employment, whether by reason of disability, retirement, death or any other reason. Stock option and stock appreciation right awards under the LTIP are non-transferable.

On March 11, 2015, the compensation committee granted 1,941,000 options under the 2014 LTIP to our officers and key employees that become exercisable at the rate of 34%, 33% and 33% on the anniversary date of the grant in 2018, 2019 and 2020, respectively. On March 12, 2014, the compensation committee granted 1,923,000 options to our officers and key employees that become exercisable at the rate of 34%, 33% and 33% on the anniversary date of the grant in 2017, 2018 and 2019, respectively. The 2015 and 2014 options expire seven years from the date of grant, or earlier in the event of certain terminations of employment. For certain of our executive officers age 55 or older, stock options awarded in 2015 and 2014 are no longer subject to forfeiture upon such officers’ departure from the company after two years from the date of grant.

Other Information

All of our stock option plans provide for the immediate vesting of all outstanding stock option grants in the event of a change in control of our company, as defined in the applicable plan documents.

During the three-month periods ended June 30, 2015 and 2014, we recognized $2.9 million and $2.7 million, respectively, of compensation expense related to our stock option grants. During the six-month periods ended June 30, 2015 and 2014, we recognized $5.1 million and $4.0 million, respectively, of compensation expense related to our stock option grants.

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For purposes of expense recognition, the estimated fair values of the stock option grants are amortized to expense over the options’ vesting period. We estimated the fair value of stock options at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:

	2015			2014
Expected dividend yield		3.0	%		3.0	%
Expected risk-free interest rate		1.8	%		1.8	%
Volatility		28.2	%		28.9	%
Expected life (in years)		5.5			5.5

Option valuation models require the input of highly subjective assumptions including the expected stock price volatility. The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable. Because our employee and director stock options have characteristics significantly different from those of traded options, and because changes in the selective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee and non-employee director stock options. The weighted average fair value per option for all options granted during the six-month periods ended June 30, 2015 and 2014, as determined on the grant date using the Black-Scholes option pricing model, was $9.25 and $9.66, respectively.

The following is a summary of our stock option activity and related information for 2015 (in millions, except exercise price and year data):

	Six-month period ended June 30, 2015
	Shares Under Option			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Beginning balance		8.4		$	35.49
Granted		1.9			46.17
Exercised		(1.2	)		27.50
Forfeited or canceled		—			—
Ending balance		9.1		$	38.90		4.55	$	76.5
Exercisable at end of period		2.4		$	28.46		2.26	$	44.5
Ending vested and expected to vest		8.9		$	38.78		4.52	$	76.0

Options with respect to 7.0 million shares (less any shares of restricted stock issued under the LTIP - see Note 10 to these unaudited consolidated financial statements) were available for grant under the LTIP at June 30, 2015.

The total intrinsic value of options exercised during the six-month periods ended June 30, 2015 and 2014 was $22.8 million and $19.7 million, respectively. As of June 30, 2015, we had approximately $41.2 million of total unrecognized compensation expense related to nonvested options. We expect to recognize that cost over a weighted average period of approximately four years.

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Other information regarding stock options outstanding and exercisable at June 30, 2015 is summarized as follows (in millions, except exercise price and year data):

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$    21.28   -  $   30.95		2.2		2.04	$	27.24		2.0	$	26.95
31.34   -        39.17		3.0		4.26		37.64		0.4		35.65
46.17   -        46.17		1.9		6.70		46.17		—		—
46.87   -        47.92		2.0		5.71		46.88		—		—
$    21.28   -  $   47.92		9.1		4.55	$	38.90		2.4	$	28.46

9. Deferred Compensation

We have a Deferred Equity Participation Plan (which we refer to as the Age 62 Plan), which is a non-qualified plan that generally provides for distributions to certain of our key executives when they reach age 62 (or the one-year anniversary of the date of the grant for participants over the age of 61 as of the grant date) or upon or after their actual retirement. Under the provisions of the Age 62 Plan, we typically contribute cash in an amount approved by the compensation committee to a rabbi trust on behalf of the executives participating in the Age 62 Plan, and instruct the trustee to acquire a specified number of shares of our common stock on the open market or in privately negotiated transactions based on participant elections. Distributions under the Age 62 Plan may not normally be made until the participant reaches age 62 (or the one-year anniversary of the date of the grant for participants over the age of 61 as of the grant date) and are subject to forfeiture in the event of voluntary termination of employment prior to then. All contributions to the plan deemed to be invested in shares of our common stock are distributed in the form of our common stock and all other distributions are paid in cash.

Our common stock that is issued to or purchased by the rabbi trust as a contribution under the Age 62 Plan is valued at historical cost, which equals its fair market value at the date of grant or date of purchase. When common stock is issued, we record an unearned deferred compensation obligation as a reduction of capital in excess of par value in the accompanying consolidated balance sheet, which is amortized to compensation expense ratably over the vesting period of the participants. Future changes in the fair market value of our common stock owed to the participants do not have any impact on the amounts recorded in our consolidated financial statements.

In the first quarter of each of 2015 and 2014, the compensation committee approved $8.9 million and $9.2 million, respectively, of awards in the aggregate to certain key executives under the Age 62 Plan that were contributed to the rabbi trust in first quarter 2015 and 2014, respectively. We contributed cash to the rabbi trust and instructed the trustee to acquire a specified number of shares of our common stock on the open market to fund these 2015 and 2014 awards. During the three-month periods ended June 30, 2015 and 2014, we charged $2.1 million and $1.8 million, respectively, to compensation expense related to these awards. During the six-month periods ended June 30, 2015 and 2014, we charged $3.1 million and $3.2 million, respectively, to compensation expense related to these awards.

At June 30, 2015 and December 31, 2014, we recorded $38.1 million (related to 2.1 million shares) and $28.2 million (related to 1.9 million shares), respectively, of unearned deferred compensation as a reduction of capital in excess of par value in the accompanying consolidated balance sheet. The total intrinsic value of our unvested equity based awards under the plan at June 30, 2015 and December 31, 2014 was $99.4 million and $89.1 million, respectively. During the six-month period ended June 30, 2015, cash and equity awards with an aggregate fair value of $0.1 million were vested and distributed to executives under the Age 62 Plan.

We have a Deferred Cash Participation Plan (which we refer to as the DCPP), which is a non-qualified deferred compensation plan for certain key employees, other than executive officers, that generally provides for vesting and/or distributions no sooner than five years from the date of awards. Under the provisions of the DCPP, we typically contribute cash in an amount approved by compensation committee to the rabbi trust on behalf of the executives participating in the DCPP, and instruct the trustee to acquire a specified number of shares of our common stock on the open market or in privately negotiated transactions based on participant elections. In the first quarter of each of 2015

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and 2014, the compensation committee approved $2.7 million and $2.9 million, respectively, of awards in the aggregate to certain key executives under the DCPP that were contributed to the rabbi trust in first quarter 2015 and 2014, respectively. During the three-month periods ended June 30, 2015 and 2014, we charged $0.2 million and $0.7 million, respectively, to compensation expense related to these awards. During the six-month periods ended June 30, 2015 and 2014, we charged $0.6 million and $1.5 million, respectively, to compensation expense related to these awards. There were no distributions from the DCPP during the six-month period ended June 30, 2015.

10. Restricted Stock, Performance Share and Cash Awards

Restricted Stock Awards

As discussed in Note 8 to these unaudited consolidated financial statements, on May 13, 2014, our stockholders approved the LTIP, which replaced our previous stockholder-approved 2011 LTIP. The LTIP provides for the grant of a stock award either as restricted stock or as restricted stock units. In either case, the compensation committee may determine that the award will be subject to the attainment of performance measures over an established performance period. Stock awards and the related dividend equivalents are non-transferable and subject to forfeiture if the holder does not remain continuously employed with us during the applicable restriction period or, in the case of a performance-based award, if applicable performance measures are not attained. The compensation committee will determine all of the terms relating to the satisfaction of performance measures and the termination of a restriction period, or the forfeiture and cancellation of a restricted stock award upon a termination of employment, whether by reason of disability, retirement, death or any other reason. The compensation committee may grant unrestricted shares of common stock or units representing the right to receive shares of common stock to employees who have attained age 62.

The agreements awarding restricted stock units under the LTIP will specify whether such awards may be settled in shares of our common stock, cash or a combination of shares and cash and whether the holder will be entitled to receive dividend equivalents, on a current or deferred basis, with respect to such award. Prior to the settlement of a restricted stock unit, the holder of a restricted stock unit will have no rights as a stockholder of the company. The maximum number of shares available under the LTIP for restricted stock, restricted stock units and performance unit awards settled with stock (i.e., all awards other than stock options and stock appreciation rights) is 2.0 million. At June 30, 2015, 1.5 million shares were available for grant under the LTIP for such awards.

In the first quarter of each of 2015 and 2014, we granted 362,600 and 323,600 restricted stock units, respectively, to employees under the LTIP, with an aggregate fair value of $16.7 million and $15.2 million, respectively, at the date of grant. These 2015 and 2014 awards of restricted stock units vest as follows: 362,600 units granted in first quarter 2015 and 323,600 units granted in first quarter 2014, vest in full based on continued employment through March 11, 2019 and March 12, 2018, respectively. For certain of our executive officers age 55 or older, restricted stock units awarded in 2015 and 2014 are no longer subject to forfeiture upon such officers’ departure from the company after two years from the date of grant.

We account for restricted stock awards at historical cost, which equals its fair market value at the date of grant, which is amortized to compensation expense ratably over the vesting period of the participants. Future changes in the fair value of our common stock that is owed to the participants do not have any impact on the amounts recorded in our consolidated financial statements. During the three-month periods ended June 30, 2015 and 2014, we recognized $4.7 million and $3.9 million, respectively, to compensation expense related to restricted stock unit awards granted in 2006 through 2015. During the six-month periods ended June 30, 2015 and 2014, we recognized $7.5 million and $6.5 million, respectively, to compensation expense related to restricted stock unit awards granted in 2006 through 2015. The total intrinsic value of unvested restricted stock units at June 30, 2015 and 2014 was $66.5 million and $58.2 million, respectively. During the six-month periods ended June 30, 2015 and 2014, equity awards (including accrued dividends) with an aggregate fair value of $9.9 million and $9.5 million were vested and distributed to employees under this plan.

Performance Share Awards

On March 11, 2015 and March 12, 2014, pursuant to the LTIP, the compensation committee approved 53,900 and 48,800, respectively of provisional performance unit awards, with an aggregate fair value of $2.5 million and $2.3 million, respectively, for future grants to our officers. Each performance unit award was equivalent to the value of one share of our common stock on the date such provisional award was approved. These awards are subject to a one-year performance period based on our financial performance and a two-year vesting period. At the discretion of the compensation committee and determined based on our performance, the eligible officer will be granted a percentage of the provisional performance unit award that equates to the EBITAC growth achieved (as specified in the applicable grant agreement). At the end of the performance period, eligible participants will be granted a number of

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units based on achievement of the performance goal and subject to approval by the compensation committee. Granted units for the 2015 and 2014 provisional awards will fully vest based on continuous employment through January 1, 2018 and January 1, 2017, respectively, and will be settled in shares of our common stock on a one-for-one basis as soon as practicable in 2018 and 2017, respectively. For certain of our executive officers age 55 or older, awards granted in 2015 and 2014 are no longer subject to forfeiture upon such officers’ departure from the company after two years from the date of grant. If an eligible employee leaves us prior to the vesting date, the entire award will be forfeited.

Cash Awards

On March 11, 2015, pursuant to our Performance Unit Program (which we refer to as the Program), the compensation committee approved provisional cash awards of $14.6 million in the aggregate for future grants to our officers and key employees that are denominated in units (315,000 units in the aggregate), each of which was equivalent to the value of one share of our common stock on the date the provisional award was approved. The Program consists of a one-year performance period based on our financial performance and a two-year vesting period. At the discretion of the compensation committee and determined based on our performance, the eligible officer or key employee will be granted a percentage of the provisional cash award units that equates to the EBITAC growth achieved (as defined in the Program). At the end of the performance period, eligible participants will be granted a number of units based on achievement of the performance goal and subject to approval by the compensation committee. Granted units for the 2015 provisional award will fully vest based on continuous employment through January 1, 2018. For certain of our executive officers age 55 or older, awards granted under the Program in 2015 are no longer subject to forfeiture upon such officers’ departure from the company after two years from the date of the provisional award. The ultimate award value will be equal to the trailing twelve-month price of our common stock on December 31, 2017, multiplied by the number of units subject to the award, but limited to between 0.5 and 1.5 times the original value of the units determined as of the grant date. The fair value of the awarded units will be paid out in cash as soon as practicable in 2018. If an eligible employee leaves us prior to the vesting date, the entire award will be forfeited. We did not recognize any compensation expense during the three-month period ended June 30, 2015 related to the 2015 provisional award under the Program.

On March 12, 2014, pursuant to the Program, the compensation committee approved provisional cash awards of $10.8 million in the aggregate for future grant to our officers and key employees that are denominated in units (229,000 units in the aggregate), each of which was equivalent to the value of one share of our common stock on the date the provisional awards were approved. Terms of the 2014 provisional awards were similar to the terms of the 2015 provisional awards. Based on our performance for 2014, we granted 220,000 units under the Program in first quarter 2015 that will fully vest on January 1, 2017. During the three-month period ended June 30, 2015, we recognized $1.3 million to compensation expense related to these awards. During the six-month period ended June 30, 2015, we recognized $2.5 million to compensation expense related to these awards. We did not recognize any compensation expense during 2014 related to the 2014 awards.

On March 13, 2013, pursuant to the Program, the compensation committee approved provisional cash awards of $10.5 million in the aggregate for future grant to our officers and key employees that are denominated in units (269,000 units in the aggregate), each of which was equivalent to the value of one share of our common stock on the date the provisional awards were approved. Terms of the 2013 provisional awards were similar to the terms of the 2015 provisional awards. Based on our performance for 2013, we granted 263,000 units under the Program in first quarter 2014 that will fully vest on January 1, 2016. During the three-month periods ended June 30, 2015 and June 30, 2014, we recognized $1.6 million and $1.5 million, respectively, to compensation expense related to the 2013 awards. During the six-month periods ended June 30, 2015 and June 30, 2014, we recognized $3.0 million and $3.0 million, respectively, to compensation expense related to the 2013 awards.

On March 16, 2012, pursuant to the Program, the compensation committee approved provisional cash awards of $13.1 million in the aggregate for future grant to our officers and key employees that are denominated in units (368,000 units in the aggregate), each of which was equivalent to the value of one share of our common stock on the date the provisional awards were approved. Terms of the 2012 provisional awards were similar to the terms of the 2015 provisional awards. Based on our performance for 2012, we granted 365,000 units under the Program in first quarter 2013 that fully vested on January 1, 2015. During the three-month period ended June 30, 2014 we recognized $1.8 million of compensation expense related to the 2012 awards. During the six-month period ended June 30, 2014 we recognized $4.5 million of compensation expense related to the 2012 awards. We did not recognize any compensation expense during 2015 related to the 2012 awards.

During the six-month period ended June 30, 2015, cash awards related to the 2012 provisional award with an aggregate fair value of $15.8 million (0.3 million units in the aggregate) were vested and distributed to employees under the Program.

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11. Retirement Plans

We have a noncontributory defined benefit pension plan that, prior to July 1, 2005, covered substantially all of our domestic employees who had attained a specified age and one year of employment. Benefits under the plan were based on years of service and salary history. In 2005, we amended our defined benefit pension plan to freeze the accrual of future benefits for all U.S. employees, effective on July 1, 2005. In the table below, the service cost component represents plan administration costs that are incurred directly by the plan.

The components of the net periodic pension benefit cost for the plan consists of the following (in millions):

	Three-month period ended June 30,						Six-month period ended June 30,
	2015			2014			2015			2014
Service cost	$	0.4		$	0.1		$	0.5		$	0.2
Interest cost on benefit obligation		2.8			3.2			5.4			6.4
Expected return on plan assets		(3.8	)		(4.7	)		(7.7	)		(9.4	)
Amortization of net actuarial loss		1.6			0.6			3.2			1.2
Net periodic benefit cost (earnings)	$	1.0		$	(0.8	)	$	1.4		$	(1.6	)

We are not required under the IRC to make any minimum contributions to the plan for the 2015 plan year nor were we required to make any minimum contributions to the plan for the 2014 plan year. This level of required funding is based on the plan being frozen and the aggregate amount of our historical funding. We did not make any discretionary contributions to the plan during the six-month periods ended June 30, 2015 and 2014.

12. Investments

The following is a summary of our investments and the related funding commitments (in millions):

	June 30, 2015				December 31,
			Funding		2014
	Assets		Commitments		Assets
Chem-Mod LLC	$	4.0	$	—	$	4.0
Chem-Mod International LLC		2.0		—		2.0
C-Quest Technologies LLC and C-Quest Technologies International LLC		—		—		—
Clean-coal investments:
Controlling interest in five limited liability companies that own fourteen 2009 Era Clean Coal Plants		15.6		—		17.3
Non-controlling interest in one limited liability company that owns one 2011 Era Clean Coal Plant		0.9		—		1.0
Controlling interest in fourteen limited liability companies that own nineteen 2011 Era Clean Coal Plants		58.3		—		54.5
Other investments		2.5		2.9		3.2
Total investments	$	83.3	$	2.9	$	82.0

Chem-Mod LLC - At June 30, 2015, we held a 46.54% controlling interest in Chem-Mod. Chem-Mod possesses the exclusive marketing rights, in the U.S. and Canada, for technologies used to reduce emissions created during the combustion of coal. The refined coal production plants discussed below, as well as those owned by other unrelated parties, license and use Chem-Mod’s proprietary technologies, The Chem-Mod™ Solution, in the production of refined coal. The Chem-Mod™ Solution uses a dual injection sorbent system to reduce mercury, sulfur dioxide and other emissions at coal-fired power plants.

We believe that the application of The Chem-Mod™ Solution qualifies for refined coal tax credits under IRC Section 45 when used with refined coal production plants placed in service by December 31, 2011 or 2009. Chem-Mod has been marketing its technologies principally to coal-fired power plants owned by utility companies, including those utilities that are operating with the IRC Section 45 refined coal production plants in which we hold an investment.

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Chem-Mod is determined to be a variable interest entity (which we refer to as a VIE). We are the controlling manager of Chem-Mod and therefore consolidate its operations into our consolidated financial statements. At June 30, 2015, total assets and total liabilities of this VIE included in our consolidated balance sheet were $10.6 million and $0.9 million, respectively. For the six-month period ended June 30, 2015, total revenues and expenses were $34.7 million and $1.5 million, respectively. We are under no obligation to fund Chem-Mod’s operations in the future.

Chem-Mod International LLC - At June 30, 2015, we held a 31.52% non-controlling ownership interest in Chem-Mod International. Chem-Mod International has the rights to market The Chem-Mod™ Solution in countries other than the U.S. and Canada. Such marketing activity has been limited to date.

C-Quest Technologies LLC and C-Quest Technologies International LLC (together, C-Quest) - At June 30, 2015, we held a non-controlling 12% interest in C-Quest’s global entities, which is an increase of 4% resulting from the transaction described below. C-Quest possesses rights, information and technology for the reduction of carbon dioxide emissions created by burning fossil fuels. Thus far, C-Quest’s operations have been limited to laboratory testing. C-Quest is determined to be a VIE, but due to our lack of control over the operation of C-Quest, we do not consolidate this investment into our consolidated financial statements. Prior to August 1, 2013, we had an option to acquire an additional 19% interest in C-Quest’s global entities for $9.5 million at any time on or prior to August 1, 2016. On August 1, 2013, we loaned the majority owner $2.0 million at a 2% interest rate, which was to mature on May 15, 2014. Also on August 1, 2013, the option to acquire the 19% interests was extended to August 15, 2016. The loan was to be repaid in cash or by delivery of an additional 4% ownership interest in C-Quest’s global entities. On March 31, 2014, we accepted payment of the loan by delivery of the additional 4% ownership interest, therefore our remaining option was reduced to 15% and the remaining purchase price was reduced to $7.5 million.

Clean Coal Investments -

• We have investments in limited liability companies that own 34 refined coal production plants which produce refined coal using propriety technologies owned by Chem-Mod. We believe the production and sale of refined coal at these plants is qualified to receive refined coal tax credits under IRC Section 45. The fourteen plants placed in service prior to December 31, 2009 (which we refer to as the 2009 Era Plants) are eligible to receive tax credits through 2019 and the twenty plants placed in service prior to December 31, 2011 (which we refer to as the 2011 Era Plants) are eligible to receive tax credits through 2021.

• On March 1, 2013, we purchased an additional ownership interest in twelve of the 2009 Era Plants from a co-investor. For nine of the plants, our ownership increased from 24.5% to 49.5%. Our investment in these nine plants had been accounted for under the equity method of accounting until the March 1, 2014 transaction described below. For the other three of the plants, our ownership increased from 25.0% to 60.0%. Our investment in these plants had been accounted for under the equity method of accounting. As of March 1, 2013, we consolidated the operations of the limited liability company that owns these three plants. Our purchase price for the additional ownership interests in these twelve plants was the assumption of the promissory note that we received as consideration for the co-investor’s purchase of ownership interests in three of the 2009 Era Plants on March 1, 2010, which had a carrying value, including accrued interest, of $8.0 million at March 1, 2013, plus the payment of cash and other consideration of $5.0 million. We recognized a gain of $11.4 million as a component of other net revenues in the accompanying unaudited consolidated statement of earnings, which included the increase in fair value of our prior 25% equity interest in the limited liability company upon the acquisition of the additional 35% equity interest, and recorded $26.3 million of fixed and other amortizable intangible assets and $6.8 million of other assets in connection with this transaction. The carrying value of our prior non-controlling interest in the limited liability company was $4.8 million as of the acquisition date. The fair value of our prior non-controlling interest in the limited liability company was determined by allocating, on a pro rata basis, the fair value of the limited liability company as adjusted for our lack of control in our prior ownership position. We determined the fair value of the limited liability company using similar valuation techniques to those discussed in Note 3 to these unaudited consolidated financial statements.

• On March 1, 2014, we purchased additional ownership interests from a co-investor in four limited liability companies that own seven 2009 Era Plants and five 2011 Era Plants. We recognized a gain of $25.6 million as a component of other net revenues in the accompanying unaudited consolidated statement of earnings, which included the increase in fair value of our prior equity interests in the limited liability companies upon the acquisition of the additional equity interests, and recorded $26.3 million of fixed and other amortizable intangible assets in connection with this transaction. The carrying value of our prior non-controlling interest in the limited liability company was $15.6 million as of the acquisition date. The fair value of our prior non-controlling interest in

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the limited liability company was determined by allocating, on a pro rata basis, the fair value of the limited liability company as adjusted for our lack of control in our prior ownership position. We determined the fair value of the limited liability company using similar valuation techniques to those discussed in Note 3 to these consolidated financial statements. For seven of the 2009 Era plants, our ownership increased from 49.5% to 100.0%. For the 2011 Era plants, our ownership increased from 48.8% to 90.0% for one of the plants, from 49.0% to 100.0% for three of the plants and from 98.0% to 100.0% for one of the plants. Our investments in the plants where our ownership was less than 50% had been accounted for under the equity method of accounting. As of March 1, 2014 we consolidated the operations of the limited liability companies that own these plants. Total revenues and expenses recorded in our unaudited consolidated statement of earnings for the three-month period ended June 30, 2015 related to this acquisition were $131.3 million and $139.8 million, respectively.

• As of June 30, 2015:

• Twenty-six of the plants have long-term production contracts.

• The remaining eight plants are in various stages of seeking and negotiating long-term production contracts.

• We have a non-controlling interest in one plant, which is owned by a limited liability company (which we refer to as a LLC). We have determined that this LLC is a VIE, for which we are not the primary beneficiary. At June 30, 2015, total assets and total liabilities of this VIE were $9.9 million and $7.1 million, respectively. For the six-month period ended June 30, 2015, total revenues and expenses of this VIE were $16.1 million and $19.7 million, respectively.

• We and our co-investors each fund our portion of the on-going operations of the limited liability companies in proportion to our investment ownership percentages. Other than our portion of the on-going operational funding, there are no additional amounts that we are committed to related to funding these investments.

Other Investments - At June 30, 2015, we owned a non-controlling, minority interest in four venture capital funds totaling $2.0 million, a 20% non-controlling interest in an investment management company totaling $0.5 million, twelve certified low-income housing developments with zero carrying value and two real estate entities with zero carrying value. The low-income housing developments and real estate entities have been determined to be VIEs, but are not required to be consolidated due to our lack of control over their respective operations. At June 30, 2015, total assets and total debt of these VIEs were approximately $60.0 million and $20.0 million, respectively.

13. Commitments, Contingencies and Off-Balance Sheet Arrangements

In connection with our investing and operating activities, we have entered into certain contractual obligations and commitments. See Notes 6 and 12 to these unaudited consolidated financial statements for additional discussion of these obligations and commitments. Our future minimum cash payments, including interest, associated with our contractual obligations pursuant to the note purchase agreements, Credit Agreement, Premium Financing Debt Facility, operating leases and purchase commitments at June 30, 2015 were as follows (in millions):

	Payments Due by Period
Contractual Obligations	2015			2016			2017			2018			2019			Thereafter		Total
Note purchase agreements	$	—		$	50.0		$	300.0		$	100.0		$	100.0		$	1,575.0	$	2,125.0
Credit Agreement		155.0			—			—			—			—			—		155.0
Premium Financing Debt Facility		91.6			—			—			—			—			—		91.6
Interest on debt		50.4			100.4			97.5			77.5			73.2			323.9		722.9
Total debt obligations		297.0			150.4			397.5			177.5			173.2			1,898.9		3,094.5
Operating lease obligations		52.7			92.0			80.5			61.2			49.0			173.5		508.9
Less sublease arrangements		(2.0	)		(1.3	)		(0.9	)		(0.7	)		(0.5	)		—		(5.4	)
Outstanding purchase obligations		24.9			14.7			9.4			7.3			6.9			7.0		70.2
Funding related to acquistion of William Gallagher Associates Insurance Brokers, Inc. (see Note 3)		150.0			—			—			—			—			—		150.0
Total contractual obligations	$	522.6		$	255.8		$	486.5		$	245.3		$	228.6		$	2,079.4	$	3,818.2

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The amounts presented in the table above may not necessarily reflect our actual future cash funding requirements, because the actual timing of future payments may vary from the stated contractual obligation.

Note Purchase Agreements, Credit Agreement and Premium Financing Debt Facility - See Note 6 to our unaudited consolidated financial statements for a discussion of the terms of the note purchase agreements, the Credit Agreement and Premium Financing Debt Facility.

Operating Lease Obligations - Our corporate segment’s executive offices and certain subsidiary and branch facilities of our brokerage and risk management segments are located at Two Pierce Place, Itasca, Illinois, where we lease approximately 306,000 square feet of space, or approximately 60% of the building. The lease commitment on this property expires February 28, 2018.

We generally operate in leased premises at our other locations. Certain of these leases have options permitting renewals for additional periods. In addition to minimum fixed rentals, a number of leases contain annual escalation clauses which are generally related to increases in an inflation index.

We have leased certain office space to several non-affiliated tenants under operating sublease arrangements. In the normal course of business, we expect that certain of these leases will not be renewed or replaced. We adjust charges for real estate taxes and common area maintenance annually based on actual expenses, and we recognize the related revenues in the year in which the expenses are incurred. These amounts are not included in the minimum future rentals to be received in the contractual obligations table above.

Outstanding Purchase Obligations - We typically do not have a material amount of outstanding purchase obligations at any point in time. The amount disclosed in the contractual obligations table above represents the aggregate amount of unrecorded purchase obligations that we had outstanding at June 30, 2015. These obligations represent agreements to purchase goods or services that were executed in the normal course of business.

Off-Balance Sheet Commitments - Our total unrecorded commitments associated with outstanding letters of credit, financial guarantees and funding commitments as of June 30, 2015 were as follows (in millions):

	Amount of Commitment Expiration by Period												Total Amounts Committed
Off-Balance Sheet Commitments	2015		2016		2017		2018		2019		Thereafter
Letters of credit	$	—	$	—	$	—	$	—	$	—	$	22.6	$	22.6
Financial guarantees		0.7		0.8		0.8		0.8		0.8		15.6		19.5
Funding commitments		—		—		—		—		1.5		1.4		2.9
Total commitments	$	0.7	$	0.8	$	0.8	$	0.8	$	2.3	$	39.6	$	45.0

Since commitments may expire unused, the amounts presented in the table above do not necessarily reflect our actual future cash funding requirements. See Note 12 to our unaudited consolidated financial statements for a discussion of our funding commitments related to our corporate segment and the Off-Balance Sheet Debt section below for a discussion of our letters of credit. All of the letters of credit represent multiple year commitments that have annual, automatic renewing provisions and are classified by the latest commitment date.

Since January 1, 2002, we have acquired 363 companies, all of which were accounted for using the acquisition method for recording business combinations. Substantially all of the purchase agreements related to these acquisitions contain provisions for potential earnout obligations. For all of our acquisitions made in the period from 2012 to 2015 that contain potential earnout obligations, such obligations are measured at fair value as of the acquisition date and are included on that basis in the recorded purchase price consideration for the respective acquisition. The amounts recorded as earnout payables are primarily based upon estimated future operating results of the acquired entities over a two- to three-year period subsequent to the acquisition date. The aggregate amount of the maximum earnout obligations related to these acquisitions was $596.6 million, of which $217.4 million was recorded in our consolidated balance sheet as of June 30, 2015 based on the estimated fair value of the expected future payments to be made. See Note 3 to these unaudited consolidated financial statements for a discussion of our funding commitments related to our acquisitions we signed and completed in 2015.

Off-Balance Sheet Debt - Our unconsolidated investment portfolio includes investments in enterprises where our ownership interest is between 1% and 50%, in which management has determined that our level of influence and economic interest is not sufficient to require consolidation. As a result, these investments are accounted for under the equity method. None of these unconsolidated investments had any outstanding debt at June 30, 2015 or December 31, 2014 that was recourse to us.

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At June 30, 2015, we had posted two letters of credit totaling $11.3 million, in the aggregate, related to our self-insurance deductibles, for which we had a recorded liability of $11.2 million. We have an equity investment in a rent-a-captive facility, which we use as a placement facility for certain of our insurance brokerage operations. At June 30, 2015, we had posted seven letters of credit totaling $6.3 million to allow certain of our captive operations to meet minimum statutory surplus requirements and for additional collateral related to premium and claim funds held in a fiduciary capacity. At June 30, 2015, we had posted one letter of credit totaling $5.0 million to support our potential obligation under a client’s insurance program. These letters of credit have never been drawn upon.

Litigation, Regulatory and Taxation Matters - We are a defendant in various legal actions incidental to the nature of our business including but not limited to matters related to employment practices, alleged breaches of non-compete or other restrictive covenants, theft of trade secrets, breaches of fiduciary duties and related causes of action. We are also periodically the subject of inquiries, investigations and reviews by regulatory and taxing authorities into various matters related to our business. Neither the outcomes of these matters nor their effect upon our business, financial condition or results of operations can be determined at this time.

In July 2014, we were named in a lawsuit that asserts that we, our subsidiary, Gallagher Clean Energy, LLC, and Chem-Mod LLC are liable for infringement of a patent held by Nalco Company. The complaint seeks a judgment of infringement, damages, costs and attorneys’ fees, and injunctive relief. We and the other defendants dispute the allegations contained in the complaint and intend to defend this matter vigorously. On September 30, 2014, we filed a motion to dismiss the complaint on behalf of all defendants. On February 4, 2015, our motion to dismiss was granted by the court; however, the court also granted Nalco Company 30 days to file an amended complaint, which Nalco did on March 3, 2015, and we filed a second motion to dismiss on April 10, 2015. We believe that the probability of a material loss is remote. However, litigation is inherently uncertain and it is not possible for us to predict the ultimate disposition of this proceeding.

During January and February 2015, five senior employees of our U.K.-based international brokerage operation, including the chief executive officer and chief financial officer, resigned from the company and disclosed that they intend to work for another insurance brokerage firm. In April 2015, we commenced litigation against the former chief executive officer, the former chief financial officer and a third-party financial advisor. Among other things, the litigation seeks damages for breach of fiduciary duty, breach of contract and taking of corporate opportunities. A trial date has been set for February 2016.

During the first quarter of 2015, the Financial Conduct Authority (FCA) of the U.K. informed us that it will undertake a Skilled Person Review pursuant to section 166 of the U.K.’s Financial Services and Markets Act 2000. The purpose of the review is to assess the risk and control framework for our regulated entities in the U.K. In July 2015, KPMG was appointed as the Skilled Person. We are cooperating fully with the FCA and the Skilled Person in this review. We believe that the risk and control framework we have in place is appropriate to our U.K. operations’ size and scale. As such, we do not believe the review will have a material adverse effect on our results of operations.

Our micro-captive advisory services are under investigation by the Internal Revenue Service (IRS). Additionally, the IRS has initiated audits for the 2012 tax year of over 100 of the micro-captive insurance companies organized and/or managed by us. Among other matters, the IRS is investigating whether we have been acting as a tax shelter promoter in connection with these operations. While the IRS has not made specific allegations relating to our operations, if the IRS were to successfully assert that the micro-captives organized and/or managed by us do not meet the requirements of IRC Section 831(b), we could be subject to monetary claims by the IRS and/or our micro-captive clients, and our future earnings from our micro-captive operations could be materially adversely affected, any of which events, could negatively impact the overall captive business and adversely affect our consolidated results of operations and financial condition. Due to the early stage of the investigation and the fact that the IRS has not made any allegation against us, we are not able to reasonably estimate the amount of any potential loss in connection with this investigation.

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Contingent Liabilities - We purchase insurance to provide protection from errors and omissions (which we refer to as E&O) claims that may arise during the ordinary course of business. We currently retain the first $5.0 million of each and every E&O claim. Our E&O insurance provides aggregate coverage for E&O losses up to $175.0 million in excess of our retained amounts. We have historically maintained self-insurance reserves for the portion of our E&O exposure that is not insured. We periodically determine a range of possible reserve levels using actuarial techniques that rely heavily on projecting historical claim data into the future. Our E&O reserve in the June 30, 2015 unaudited consolidated balance sheet is above the lower end of the most recently determined actuarial range by $1.7 million and below the upper end of the actuarial range by $6.1 million. We can make no assurances that the historical claim data used to project the current reserve levels will be indicative of future claim activity. Thus, the E&O reserve level and corresponding actuarial range could change in the future as more information becomes known, which could materially impact the amounts reported and disclosed herein.

Tax-advantaged Investments No Longer Held - Between 1996 and 2007, we developed and then sold portions of our ownership in various energy related investments, many of which qualified for tax credits under IRC Section 29. In connection with the sales to other investors, we provided various indemnifications. At June 30, 2015, the maximum potential amount of future payments that we could be required to make under these indemnifications totaled approximately $32.0 million, net of the applicable income tax benefit. In addition, we recorded tax benefits in connection with our ownership in these investments. At June 30, 2015, we had exposure on $117.0 million of previously earned tax credits. In 2004, 2007 and 2009, the IRS examined several of these investments and all examinations were closed without any changes being proposed by the IRS. However, any future adverse tax audits, administrative rulings or judicial decisions could disallow previously claimed tax credits or cause us to be subject to liability under our indemnification obligations. Because of the contingent nature of these exposures and our related assessment of their likelihood, no liabilities have been recorded in our June 30, 2015 consolidated balance sheet related to these indemnification obligations.

14. Accumulated Other Comprehensive Earnings (Loss)

The after-tax components of our accumulated other comprehensive earnings (loss) attributable to controlling interests consist of the following:

	Pension Liability			Foreign Currency Translation			Fair Value of Derivative Investments			Accumulated Comprehensive Earnings (Loss)
Balance as of December 31, 2014	$	(44.2	)	$	(216.3	)	$	(0.1	)	$	(260.6	)
Net change in period		0.7			(85.2	)		6.4			(78.1	)
Balance as of June 30, 2015	$	(43.5	)	$	(301.5	)	$	6.3		$	(338.7	)

The foreign currency translation during the six-month period ended June 30, 2015 primarily relates to the net impact of changes in the value of the local currencies relative to the U.S. dollar for our operations in Australia, Canada, the Caribbean, India, New Zealand and the U.K.

During the six-month periods ended June 30, 2015 and 2014, $3.2 million and $1.2 million, respectively, of expense related to the pension liability was reclassified from accumulated other comprehensive earnings (loss) to compensation expense in the statement of earnings. During the six-month periods ended June 30, 2015 and 2014, $0.1 million of income and $0.3 million of expense, respectively, related to the fair value of derivative investments, was reclassified from accumulated other comprehensive earnings (loss) to the statement of earnings. During the six-month periods ended June 30, 2015 and 2014, no amounts related to foreign currency translation were reclassified from accumulated other comprehensive earnings (loss) to the statement of earnings.

15. Segment Information

We have three reportable segments: brokerage, risk management and corporate.

The brokerage segment is primarily comprised of our retail and wholesale insurance brokerage operations. The brokerage segment generates revenues through commissions paid by insurance underwriters and through fees charged to our clients. Our brokers, agents and administrators act as intermediaries between insurers and their customers and we do not assume underwriting risks.

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The risk management segment provides contract claim settlement and administration services for enterprises that choose to self-insure some or all of their property/casualty coverages and for insurance companies that choose to outsource some or all of their property/casualty claims departments. These operations also provide claims management, loss control consulting and insurance property appraisal services. Revenues are principally generated on a negotiated per-claim or per-service fee basis.

The corporate segment manages our clean energy and other investments. This segment also holds all of our corporate debt.

Allocations of investment income and certain expenses are based on reasonable assumptions and estimates primarily using revenue, headcount and other information. We allocate the provision for income taxes to the brokerage and risk management segments using the local country statutory rates. Reported operating results by segment would change if different methods were applied. See Note 1 to these unaudited consolidated financial statements for a discussion of a reclassification of amounts between the brokerage and risk management segments.

Financial information relating to our segments for the three-month and six-month periods ended June 30, 2015 and 2014 is as follows (in millions):

	Three-month period						Six-month period
	ended June 30,						ended June 30,
	2015			2014			2015			2014
Brokerage
Total revenues	$	885.6		$	737.9		$	1,636.7		$	1,302.3
Earnings before income taxes	$	156.6		$	136.2		$	217.6		$	186.5
Identifiable assets at June 30, 2015 and 2014							$	8,894.1		$	8,017.6
Risk Management
Total revenues	$	189.4		$	172.8		$	366.6		$	337.0
Earnings before income taxes	$	26.7		$	21.2		$	50.3		$	39.9
Identifiable assets at June 30, 2015 and 2014							$	623.3		$	611.0
Corporate
Total revenues	$	296.4		$	268.6		$	599.4		$	455.0
Loss before income taxes	$	(54.8	)	$	(45.5	)	$	(108.5	)	$	(59.8	)
Identifiable assets at June 30, 2015 and 2014							$	1,198.7		$	1,390.7

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Review by Independent Registered Public Accounting Firm

The interim consolidated financial statements at June 30, 2015 and for the three-month and six-month periods ended June 30, 2015 and 2014 have been reviewed by Ernst & Young LLP, our independent registered public accounting firm, and their report is included herein.

Review Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders

Arthur J. Gallagher & Co.

We have reviewed the consolidated balance sheet of Arthur J. Gallagher & Co. as of June 30, 2015, and the related consolidated statements of earnings and comprehensive earnings for the three-month and six-month periods ended June 30, 2015 and 2014, the consolidated statement of cash flows for the six-month periods ended June 30, 2015 and 2014, and the consolidated statement of stockholders’ equity for the six-month period ended June 30, 2015. These financial statements are the responsibility of the Company’s management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Arthur J. Gallagher & Co. as of December 31, 2014, and the related consolidated statements of earnings, comprehensive earnings, stockholders’ equity, and cash flows for the year then ended, not presented herein, and we expressed an unqualified audit opinion on those consolidated financial statements in our report dated February 12, 2015. In our opinion, the accompanying consolidated balance sheet of Arthur J. Gallagher & Co. as of December 31, 2014, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

/s/ Ernst & Young LLP

Ernst & Young LLP

Chicago, Illinois

July 31, 2015

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The discussion and analysis that follows relates to our financial condition and results of operations for the quarter and six-month periods ended June 30, 2015. Readers should review this information in conjunction with the unaudited consolidated financial statements and notes included in Item 1 of Part I of this quarterly report on Form 10-Q and the audited consolidated financial statements and notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in our annual report on Form 10-K for the year ending December 31, 2014.

Information Concerning Forward-Looking Statements

This report contains certain statements related to future results, or states our intentions, beliefs and expectations or predictions for the future, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations or forecasts of future events. Such statements use words such as “anticipate,” “believe,” “estimate,” “expect,” “contemplate,” “forecast,” “project,” “intend,” “plan,” “potential,” and other similar terms, and future or conditional tense verbs like “could,” “may,” “might,” “see,” “should,” “will” and “would.” You can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. For example, we may use forward-looking statements when addressing topics such as: market and industry conditions, including competitive and pricing trends; acquisition strategy; the expected impact of acquisitions and dispositions; the development and performance of our services and products; changes in the composition or level of our revenues or earnings; our cost structure and the outcome of cost-saving or restructuring initiatives; future capital expenditures; future debt to earnings ratios; the outcome of contingencies; dividend policy; pension obligations; cash flow and liquidity; capital structure and financial losses; future actions by regulators; the outcome of existing regulatory actions, investigations, reviews or litigation; the impact of changes in accounting rules; financial markets; interest rates; foreign exchange rates; matters relating to our operations; income taxes; expectations regarding our investments, including our clean energy investments; the financial impact of retention agreements in our international brokerage operations; and integrating recent acquisitions. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors.

Potential factors that could impact results include:

• Failure to successfully and cost-effectively integrate recently acquired businesses and their operations or fully realize synergies from such acquisitions in the expected time frame;

• Volatility or declines in premiums or other adverse trends in the insurance industry;

• An economic downturn;

• Competitive pressures in each of our businesses;

• Risks that could negatively affect the success of our acquisition strategy, including continuing consolidation in our industry and growing interest in acquiring insurance brokers on the part of private equity firms, which could make it more difficult to identify targets and could make them more expensive, execution risks, integration risks, the risk of post-acquisition deterioration leading to intangible asset impairment charges, and the risk we could incur or assume unanticipated regulatory liabilities such as those relating to violations of anti-corruption and sanctions laws;

• Our failure to attract and retain experienced and qualified personnel;

• Risks arising from our growing international operations, including the risks posed by political and economic uncertainty in certain countries, (including the risks posed by protectionist local governments and underdeveloped or evolving legal systems), risks related to maintaining regulatory and legal compliance across multiple jurisdictions (such as those relating to violations of anti-corruption, sanctions and privacy laws), and risks arising from the complexity of managing businesses across different time zones, geographies, cultures and legal regimes;

• Risks particular to our risk management segment;

• The lower level of predictability inherent in contingent and supplemental commissions versus standard commissions;

• Sustained increases in the cost of employee benefits;

• Our failure to apply technology effectively in driving value for our clients through technology-based solutions, or failure to gain internal efficiencies and effective internal controls through the application of technology and related tools;

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• Our inability to recover successfully should we experience a disaster, cybersecurity attack or other significant disruption to business continuity;

• Damage to our reputation;

• Our failure to comply with regulatory requirements, including those related to governance and control requirements in particular jurisdictions, international sanctions, or a change in regulations or enforcement policies that adversely affects our operations (for example, relating to insurance broker compensation methods);

• Violations or alleged violations of the U.S. Foreign Corrupt Practices Act (FCPA), the U.K. Bribery Act 2010 or other anti-corruption laws and FATCA;

• The outcome of any existing or future investigation, review, regulatory action or litigation;

• Our failure to adapt our services to changes resulting from the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act;

• Unfavorable determinations related to contingencies and legal proceedings;

• Clients that are not satisfied with our services;

• Improper disclosure of confidential, personal or proprietary data;

• Significant changes in foreign exchange rates;

• Changes in our accounting estimates and assumptions;

• Risks related to our clean energy investments, including the risk of intellectual property claims, utilities switching from coal to natural gas, environmental and product liability claims, and environmental compliance costs;

• Disallowance of Internal Revenue Code of 1986, as amended, (which we refer to as IRC) Section 29 or IRC Section 45 tax credits;

• The risk that our outstanding debt adversely affects our financial flexibility and restrictions and limitations in the agreements and instruments governing our debt;

• The risk we may not be able to receive dividends or other distributions from subsidiaries;

• The risk of share ownership dilution when we issue common stock as consideration for acquisitions and for other reasons; and

• Volatility of the price of our common stock.

Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of, and are based on information available to us on, the date of the applicable document. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to update any such statements or release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events.

Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions, including the risk factors referred to above. Our future performance and actual results may differ materially from those expressed in forward-looking statements. Many of the factors that will determine these results are beyond our ability to control or predict. Forward-looking statements speak only as of the date that they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A detailed discussion of the factors that could cause actual results to differ materially from our published expectations is contained under the heading “Risk Factors” in our filings with the Securities and Exchange Commission, or the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and any other reports we file with the SEC in the future.

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Information Regarding Non-GAAP Measures and Other

In the discussion and analysis of our results of operations that follows, in addition to reporting financial results in accordance with GAAP, we provide information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share (as adjusted) for the brokerage and risk management segments, adjusted revenues, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue measures for each operating segment. These measures are not in accordance with, or an alternative to, the GAAP information provided in this quarterly report on Form 10-Q. We believe that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to our results of operations and financial condition. Our industry peers may provide similar supplemental non-GAAP information related to organic revenues and EBITDAC, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information we provide should be used in addition to, but not as a substitute for, the GAAP information provided. Certain reclassifications have been made to the prior-year amounts reported in this quarterly report on Form 10-Q in order to conform them to the current-year presentation.

Adjusted presentation - We believe that the adjusted presentations of the current and prior year information presented on the following pages provides stockholders and other interested persons with useful information regarding certain financial metrics that may assist such persons in analyzing our operating results as they develop a future earnings outlook for us. The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period.

• Adjusted revenues and expenses - We define these measures as revenues, compensation expense and operating expense, respectively, each adjusted to exclude gains realized from sales of books of business, acquisition integration costs, claim portfolio transfer ramp up fees/costs, workforce related charges, lease termination related charges, acquisition related adjustments and the impact of foreign currency translation, as applicable. Integration costs include costs related to transactions not expected to occur on an ongoing basis in the future once we fully assimilate the applicable acquisition. These costs are typically associated with redundant workforce, extra lease space, duplicate services and external costs incurred to assimilate the acquisition with our IT related systems.

• Adjusted ratios - Adjusted compensation expense ratio and operating expense ratio are defined as adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues.

Earnings Measures - We believe that the presentation of EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin and diluted net earnings per share (as adjusted) for the brokerage and risk management segment, each as defined below, provides a meaningful representation of our operating performance. We consider EBITDAC and EBITDAC margin as a way to measure financial performance on an ongoing basis. Adjusted EBITDAC, adjusted EBITDAC margin and diluted net earnings per share (as adjusted) for the brokerage and risk management segments are presented to improve the comparability of our results between periods by eliminating the impact of the items that have a high degree of variability.

• EBITDAC - We define this measure as net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables.

• EBITDAC margin - We define this measure as EBITDAC divided by total revenues.

• Adjusted EBITDAC - We define this measure as EBITDAC adjusted to exclude gains realized from sales of books of business, acquisition integration costs, workforce related charges, lease termination related charges, claim portfolio transfer ramp up fees/costs, acquisition related adjustments, and the period-over-period impact of foreign currency translation, as applicable.

• Adjusted EBITDAC margin - We define this measure as adjusted EBITDAC divided by total adjusted revenues (defined above).

• Diluted net earnings per share (as adjusted) for the Brokerage and Risk Management segments - We define this measure as net earnings adjusted to exclude the after-tax impact of gains realized from sales of books of business, acquisition integration costs, claim portfolio transfer ramp up fees/costs, workforce related charges, lease termination related charges and acquisition related adjustments, the period-over-period impact of foreign currency translation, as applicable, divided by diluted weighted average shares outstanding.

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Organic Revenues - For the brokerage segment, organic change in base commission and fee revenues excludes the first twelve months of net commission and fee revenues generated from acquisitions accounted for as purchases and the net commission and fee revenues related to operations disposed of in each year presented. These commissions and fees are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of our business in both the current and prior year. In addition, change in base commission and fee revenue organic growth excludes the impact of supplemental and contingent commission revenues and the period-over-period impact of foreign currency translation. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same prior year periods. In addition, for entities where we consolidate their operations into our results, but own less than 50%, we only include our proportional share of the revenues in the organic computation. For the risk management segment, organic change in fee revenues excludes the first twelve months of fee revenues generated from acquisitions accounted for as purchases and the fee revenues related to operations disposed of in each year presented. In addition, change in organic growth excludes the impact of the period-over-period impact of foreign currency translation to improve the comparability of our results between periods by eliminating the impact of the items that have a high degree of variability or are due to the limited-time nature of these revenue sources.

These revenue items are excluded from organic revenues in order to determine a comparable measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond. We have historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of our brokerage and risk management segments. We also believe that using this measure allows financial statement users to measure, analyze and compare the growth from our brokerage and risk management segments in a meaningful and consistent manner.

Reconciliation of Non-GAAP Information Presented to GAAP Measures - This quarterly report on Form 10-Q includes tabular reconciliations to the most comparable GAAP measures for adjusted revenues, adjusted compensation expense and adjusted operating expense, EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share (as adjusted) and organic revenue measures.

Segment Reclassification - In first quarter 2015, we transferred management of a claims handling operation from the brokerage segment to the risk management segment. Total revenues related to this operation were $4.9 million and $4.7 million in the second quarters of 2015 and 2014, respectively, and $9.8 million and $8.9 million in the six-month periods ended June 30, 2015 and 2014, respectively. We made the applicable segment reclassifications to the prior-period amounts to conform to the current-period presentation. The changes in the segment structure affect only the manner in which the results for the reportable segments were previously reported. These reclassifications did not impact our previously reported consolidated net earnings. See Note 1 to our unaudited consolidated financial statements included herein for an additional discussion on the reclassification of amounts between the brokerage and risk management segments.

Other Information - Allocations of investment income and certain expenses are based on reasonable assumptions and estimates primarily using revenue, headcount and other information. We allocate the provision for income taxes to the brokerage and risk management segments using local statutory rates. As a result, the provision for income taxes for the corporate segment reflects the entire benefit to us of the IRC Section 45 credits produced, because that is the segment which generated the credits. The law that provides for IRC Section 45 credits substantially expires in December 2019 for our fourteen 2009 Era Plants and in December 2021 for our twenty 2011 Era Plants. We anticipate reporting an effective tax rate of approximately 34.0% to 36.0% in both our brokerage and risk management segments for the foreseeable future. Reported operating results by segment would change if different allocation methods were applied.

In the discussion that follows regarding our results of operations, we also provide the following ratios with respect to our operating results: pretax profit margin, compensation expense ratio and operating expense ratio. Pretax profit margin represents pretax earnings divided by total revenues. The compensation expense ratio is compensation expense divided by total revenues. The operating expense ratio is operating expense divided by total revenues.

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Overview and Second Quarter 2015 Highlights

We are engaged in providing insurance brokerage and third-party property/casualty claims settlement and administration services to entities in the U.S. and abroad. Throughout 2014 and into 2015, we have expanded, and expect to continue to expand, our international operations through both acquisitions and organic growth. We generated approximately 65% of our revenues for the combined brokerage and risk management segments domestically, with the remaining 35% derived internationally, primarily in Australia, Bermuda, Canada, the Caribbean, New Zealand and the U.K. (based on second quarter 2015 revenues). We expect that our international revenue will continue to grow as a percentage of our total revenues in 2015 compared to 2014, given the number and size of the non-U.S. acquisitions that we completed in 2014. We have three reportable segments: brokerage, risk management and corporate, which contributed approximately 63%, 14% and 23%, respectively, to revenues during the six-month period ended June 30, 2015. Our major sources of operating revenues are commissions, fees and supplemental and contingent commissions from brokerage operations and fees from risk management operations. Investment income is generated from invested cash and fiduciary funds, clean energy and other investments, and interest income from premium financing.

We have generated positive organic growth in each of the last eighteen quarterly periods in both the brokerage and risk management segments. We believe our customers are increasingly optimistic about their business prospects and the economy in general. The second quarter 2015 Council of Insurance Agents and Brokers (which we refer to as CIAB) survey indicated that rates retracted by 3.3% on average, across all lines, continuing the downward trend from the first quarter 2015 survey. The first quarter 2015 survey indicated that rates retracted modestly at 2.3% on average, which was in line with the basically flat to slightly lower rate trend noted in the fourth quarter 2014 survey. Most of the brokers surveyed reported an actively competitive market; however, results varied somewhat by line, region and client loss experience. Based on our experience, insurance carriers appear to be making rational pricing decisions. In lines and accounts where rate increases or decreases are warranted, the underwriters are pricing accordingly. As carriers reach their profitability targets in lines, rates may start to flatten. The CIAB represents the leading domestic and international insurance brokers, who write approximately 85% of the commercial property/casualty premiums in the U.S.

Our operating results improved in the second quarter of 2015 compared to the same period in 2014 in both our brokerage and risk management segments:

• In our brokerage segment, total revenues and adjusted total revenues were both up 20% and 24%, respectively, base organic commission and fee revenues were up 3.9%, net earnings were up 12%, adjusted EBITDAC was up 28% and adjusted EBITDAC margins were up 89 basis points.

• In our risk management segment, total revenues and adjusted total revenues were both up 10% and 13%, respectively, organic fees were up 13.4%, net earnings were up 28%, adjusted EBITDAC was up 21% and adjusted EBITDAC margins were up 110 basis points.

• In our combined brokerage and risk management segments, total revenues and adjusted total revenues were up 18% and 22%, respectively, total organic growth was 5.8%, net earnings were up 14%, adjusted EBITDAC was up 27% and adjusted EBITDAC margins were up by 109 basis points.

• Our acquisition program and our integration efforts are meeting our expectations. During the second quarter of 2015, the brokerage segment completed eleven acquisitions with annualized revenues totaling $82.3 million. During the second quarter of 2015, the risk management segment completed two acquisitions with annualized revenues totaling $7.6 million.

• In our corporate segment, the net after tax earnings from our clean energy investments was $45.0 million in the second quarter of 2015. On March 1, 2014, we acquired additional ownership interests in seven of the 2009 Era Plants and five of the 2011 Era Plants from a co-investor. These transactions resulted in a non-cash after-tax gain of $14.1 million, which resulted from the fair value as of the transaction date. All but one of our investments in these plants had been accounted for under the equity method of accounting. For all plants where our ownership is over 50%, as of March 1, 2014 we consolidated the operations of the limited liability companies that own these plants. We anticipate our clean energy investments to generate between $98.5 million and $107.5 million in net earnings in 2015. We expect to use these additional earnings to continue our mergers and acquisition strategy in our core brokerage and risk management operations.

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The following provides information that management believes is helpful when comparing revenues, EBITDAC and diluted net earnings per share for the three-month and six-month periods ended June 30, 2015 with the same periods in 2014:

For the Three-Month Periods Ended June 30,
	Revenues							EBITDAC									Diluted Net Earnings Per Share
Segment	2015		2014		Chg			2015			2014			Chg			2015			2014			Chg
	(in millions)							(in millions)
Brokerage, as adjusted	$	882.1	$	711.9		24	%	$	261.4		$	204.6			28	%	$	0.71		$	0.63			13	%
Net gains on book sales		3.5		0.7					3.5			0.7						0.01			—
Acquisition integration		—		—					(22.4	)		(16.0	)					(0.09	)		(0.07	)
Workforce & lease termination		—		—					(6.0	)		(1.7	)					(0.02	)		(0.01	)
Acquisition related adjustments		—		—					(2.5	)		—						(0.03	)		(0.01	)
Levelized foreign currency translation		—		25.3					—			8.3						—			0.03
Brokerage, as reported		885.6		737.9					234.0			195.9						0.58			0.57
Risk Management, as adjusted		189.4		167.0		13	%		33.4			27.6			21	%		0.10			0.09			11	%
Workforce & lease termination		—		—					(0.3	)		(0.2	)					—			—
Claim portfolio transfer ramp up		—		—					—			(1.5	)					—			(0.01	)
Levelized foreign currency translation		—		5.8					—			1.1						—			—
Risk Management, as reported		189.4		172.8					33.1			27.0						0.10			0.08
Total Brokerage & Risk Management, as reported	$	1,075.0	$	910.7				$	267.1		$	222.9						0.68			0.65
Corporate, as adjusted																		0.13			0.08			63	%
Non-cash gains on changes in ownership levels																		—			(0.03	)
Corporate, as reported																		0.13			0.05
Total Company, as reported																	$	0.81		$	0.70
Total Brokerage & Risk Management, as adjusted	$	1,071.5	$	878.9		22	%	$	294.8		$	232.2			27	%	$	0.81		$	0.72			13	%

For the Six-Month Periods Ended June 30,
	Revenues							EBITDAC									Diluted Net Earnings Per Share
Segment	2015		2014		Chg			2015			2014			Chg			2015			2014			Chg
	(in millions)							(in millions)
Brokerage, as adjusted	$	1,632.3	$	1,264.5		29	%	$	428.3		$	314.2			36	%	$	1.07		$	0.94			14	%
Net gains on book sales		4.4		1.7					4.4			1.7						0.02			0.01
Acquisition integration		—		—					(43.2	)		(22.5	)					(0.18	)		(0.10	)
Workforce & lease termination		—		—					(14.5	)		(3.7	)					(0.06	)		(0.02	)
Acquisition related adjustments		—		—					(2.5	)		(1.1	)					(0.05	)		(0.03	)
Levelized foreign currency translation		—		36.1					—			8.9						—			0.03
Brokerage, as reported		1,636.7		1,302.3					372.5			297.5						0.80			0.83
Risk Management, as adjusted		366.6		327.0		12	%		63.2			52.5			20	%		0.19			0.18			6	%
Workforce & lease termination		—		—					(0.5	)		(0.6	)					—			—
Claim portfolio transfer ramp up		—		—					—			(2.7	)					—			(0.01	)
Levelized foreign currency translation		—		10.0					—			2.3						—			0.01
Risk Management, as reported		366.6		337.0					62.7			51.5						0.19			0.18
Total Brokerage & Risk Management, as reported	$	2,003.3	$	1,639.3				$	435.2		$	349.0						0.99			1.01
Corporate, as adjusted																		(0.04	)		(0.03	)
Non-cash gains on changes in ownership levels																		—			0.11
Corporate, as reported																		(0.04	)		0.08
Total Company, as reported																	$	0.95		$	1.09
Total Brokerage & Risk Management, as adjusted	$	1,998.9	$	1,591.5		26	%	$	491.5		$	366.7			34	%	$	1.26		$	1.12			13	%

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Results of Operations

Brokerage

The brokerage segment accounted for 63% of our revenues during the six-month period ended June 30, 2015. Our brokerage segment is primarily comprised of retail and wholesale brokerage operations. Our retail brokerage operations negotiate and place property/casualty, employer-provided health and welfare insurance and retirement solutions, principally for middle-market commercial, industrial, public entity, religious and not-for-profit entities. Many of our retail brokerage customers choose to place their insurance with insurance underwriters, while others choose to use alternative vehicles such as self-insurance pools, risk retention groups or captive insurance companies. Our wholesale brokerage operations assist our brokers and other unaffiliated brokers and agents in the placement of specialized, unique and hard-to-place insurance programs.

Our primary sources of compensation for our retail brokerage services are commissions paid by insurance companies, which are usually based upon a percentage of the premium paid by insureds, and brokerage and advisory fees paid directly by our clients. For wholesale brokerage services, we generally receive a share of the commission paid to the retail broker from the insurer. Commission rates are dependent on a number of factors, including the type of insurance, the particular insurance company underwriting the policy and whether we act as a retail or wholesale broker. Advisory fees are dependent on the extent and value of services we provide. In addition, under certain circumstances, both retail brokerage and wholesale brokerage services receive supplemental and contingent commissions. A supplemental commission is a commission paid by an insurance carrier that is above the base commissions paid, is determined by the insurance carrier and is established annually in advance of the contractual period based on historical performance criteria. A contingent commission is a commission paid by an insurance carrier based on the overall profit and/or volume of the business placed with that insurance carrier during a particular calendar year and is determined after the contractual period.

Litigation and Regulatory Matters - During January and February 2015, five senior employees of our U.K.-based international brokerage operation, including the chief executive officer and chief financial officer, resigned from the company and disclosed that they intend to work for another insurance brokerage firm. In April 2015, we commenced litigation against the former chief executive officer, the former chief financial officer and a third-party financial advisor. Among other things, the litigation seeks damages for breach of fiduciary duty, breach of contract and taking of corporate opportunities. A trial date has been set for February 2016.

During the first quarter of 2015, the Financial Conduct Authority (FCA) of the U.K. informed us that it will undertake a Skilled Person Review pursuant to section 166 of the U.K.’s Financial Services and Markets Act 2000. The purpose of the review is to assess the risk and control framework for our regulated entities in the U.K. In July 2015, KPMG was appointed as the Skilled Person. We are cooperating fully with the FCA and the Skilled Person in this review. We believe that the risk and control framework we have in place is appropriate to our U.K. operations’ size and scale. As such, we do not believe the review will have a material adverse effect on our results of operations.

A portion of our brokerage business includes the development and management of “micro-captives,” through operations we acquired in 2010 in our acquisition of the assets of Tribeca Strategic Advisors (Tribeca). A “captive” is an insurance company that insures the risks of its owner, affiliates or a group of companies. Micro-captives are captive insurance companies that are subject to taxation only on net investment income under IRC Section 831(b). Our micro-captive advisory services are under investigation by the Internal Revenue Service (IRS). Additionally, the IRS has initiated audits for the 2012 tax year of over 100 of the micro-captive insurance companies organized and/or managed by us. Among other matters, the IRS is investigating whether we have been acting as a tax shelter promoter in connection with these operations. While the IRS has not made specific allegations relating to our operations or the pre-acquisition activities of Tribeca, if the IRS were to successfully assert that the micro-captives organized and/or managed by us do not meet the requirements of IRC Section 831(b), we could be subject to monetary claims by the IRS and/or our micro-captive clients, and our future earnings from our micro-captive operations could be materially adversely affected, any of which events, could negatively impact the overall captive business and adversely affect our consolidated results of operations and financial condition. We may also experience lost earnings due to the negative effect of an extended IRS investigation on our clients’ and potential clients’ businesses. Annual renewals for micro-captive clients generally occur during the fourth quarter. Therefore, any negative impact from this investigation would likely have a disproportionate impact on fourth-quarter results. In 2014, our micro-captive operations contributed approximately $5.0 million in EBITDAC and $2.5 million in net earnings to our consolidated results. Due to the early stage of the investigation and the fact that the IRS has not made any allegation against us, we are not able to reasonably estimate the amount of any potential loss in connection with this investigation.

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Financial information relating to our brokerage segment results for the three-month and six-month periods ended June 30, 2015 as compared to the same periods in 2014, is as follows (in millions, except per share, percentages and workforce data):

	Three-month period									Six-month period
	ended June 30,									ended June 30,
Statement of Earnings	2015			2014			Change			2015			2014			Change
Commissions	$	634.3		$	539.5		$	94.8		$	1,154.0		$	951.0		$	203.0
Fees		178.0			144.8			33.2			324.1			238.2			85.9
Supplemental commissions		34.8			27.9			6.9			61.7			53.3			8.4
Contingent commissions		22.8			21.8			1.0			67.3			54.0			13.3
Investment income		12.2			3.2			9.0			25.2			4.1			21.1
Gains realized on books of business sales		3.5			0.7			2.8			4.4			1.7			2.7
Total revenues		885.6			737.9			147.7			1,636.7			1,302.3			334.4
Compensation		496.0			420.6			75.4			956.3			773.2			183.1
Operating		155.6			121.4			34.2			307.9			231.6			76.3
Depreciation		12.5			10.5			2.0			25.4			19.4			6.0
Amortization		58.8			42.1			16.7			112.8			79.4			33.4
Change in estimated acquisition earnout payables		6.1			7.1			(1.0	)		16.7			12.2			4.5
Total expenses		729.0			601.7			127.3			1,419.1			1,115.8			303.3
Earnings before income taxes		156.6			136.2			20.4			217.6			186.5			31.1
Provision for income taxes		56.3			47.7			8.6			76.7			65.5			11.2
Net earnings		100.3			88.5			11.8			140.9			121.0			19.9
Net earnings (loss) attributable to noncontrolling interests		1.2			0.2			1.0			5.1			(0.1	)		5.2
Net earnings attributable to controlling interests	$	99.1		$	88.3		$	10.8		$	135.8		$	121.1		$	14.7
Diluted net earnings per share	$	0.58		$	0.57		$	0.01		$	0.80		$	0.83		$	(0.03	)
Other Information
Change in diluted net earnings per share		2	%		8	%					(4	%)		15	%
Growth in revenues		20	%		35	%					26	%		31	%
Organic change in commissions and fees		4	%		3	%					4	%		3	%
Compensation expense ratio		56	%		57	%					58	%		59	%
Operating expense ratio		18	%		16	%					19	%		18	%
Effective income tax rate		36	%		35	%					35	%		35	%
Workforce at end of period (includes acquisitions)											15,667			13,917
Identifiable assets at June 30										$	8,894.4		$	8,017.6
EBITDAC
Net earnings	$	100.3		$	88.5		$	11.8		$	140.9		$	121.0		$	19.9
Provision for income taxes		56.3			47.7			8.6			76.7			65.5			11.2
Depreciation		12.5			10.5			2.0			25.4			19.4			6.0
Amortization		58.8			42.1			16.7			112.8			79.4			33.4
Change in estimated acquisition earnout payables		6.1			7.1			(1.0	)		16.7			12.2			4.5
EBITDAC	$	234.0		$	195.9		$	38.1		$	372.5		$	297.5		$	75.0
EBITDAC margin		26	%		27	%					23	%		23	%
EBITDAC growth		19	%		34	%					25	%		32	%

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The following provides information that management believes is helpful when comparing EBITDAC and adjusted EBITDAC for the three-month and six-month periods ended June 30, 2015 to the same periods in 2014 (in millions):

	Three-month period						Six-month period
	ended June 30,						ended June 30,
	2015			2014			2015			2014
Total EBITDAC - see computation above	$	234.0		$	195.9		$	372.5		$	297.5
Gains from books of business sales		(3.5	)		(0.7	)		(4.4	)		(1.7	)
Acquisition integration		22.4			16.0			43.2			22.5
Acquisition related adjustments		2.5			—			2.5			1.1
Workforce and lease termination related charges		6.0			1.7			14.5			3.7
Levelized foreign currency translation		—			(8.3	)		—			(8.9	)
Adjusted EBITDAC	$	261.4		$	204.6		$	428.3		$	314.2
Adjusted EBITDAC change		27.8	%		43.2	%		36.3	%		40.1	%
Adjusted EBITDAC margin - see page 38		29.6	%		28.7	%		26.2	%		24.9	%

Acquisition integration costs include costs related to our July 2, 2014 acquisition of Noraxis Capital Corporation (which we refer to as Noraxis), our June 16, 2014 acquisition of the Crombie/OAMPS operations (which we refer to as Crombie/OAMPS) , our April 1, 2014 acquisition of Oval Group of Companies (which we refer to as Oval), our November 14, 2013 acquisition of the Giles Group of Companies (which we refer to as Giles) and our August 12, 2013 acquisition of Bollinger, Inc. (which we refer to as Bollinger) that are not expected to occur on an ongoing basis in the future once we fully assimilate these acquisitions. These costs relate to the on-boarding of employees, communication system conversion costs, related performance compensation, redundant workforce, extra lease space, duplicate services and external costs incurred to assimilate the acquired businesses with our IT related systems. The Noraxis integration costs in the three-month and six-month periods ended June 30, 2015 totaled $3.2 million and $4.3 million, respectively, and were primarily related to the onboarding of over 650 employees. The Crombie/OAMPS integration costs in the three-month and six-month periods ended June 30, 2015 totaled $6.3 million and $13.9 million, respectively, and were primarily related to technology costs, the onboarding of over 1,700 employees and incentive compensation. The Giles and Oval integration costs in the three-month and six-month periods June 30, 2015 totaled $12.9 million and $25.0 million, respectively, and were primarily related to the consolidation of offices in the U.K., technology costs, the onboarding of over 2,000 employees, branding and incentive compensation. The Bollinger integration costs in the three-month and six-month periods ended June 30, 2014 totaled $3.0 million $5.3 million, respectively, and were primarily related to technology costs, the onboarding of over 500 employees and incentive compensation. The Giles integration costs in the three-month and six-month periods ended June 30, 2014 totaled $4.3 million and $8.5 million, respectively, and were primarily related to technology costs, the onboarding of over 1,000 employees and incentive compensation. The Oval integration costs in the three-month and six-month periods ended June 30, 2014 totaled $4.4 million and were primarily related to technology costs, the onboarding of over 1,000 employees and incentive compensation. The Crombie/OAMPS integration costs in the three-month and six-month periods ended June 30, 2014 totaled $4.3 million and were primarily related to technology costs, the onboarding of over 1,700 employees and incentive compensation. The prior period integration costs relate to the Crombie/OAMPS, Oval, Bollinger and Giles acquisitions only. The full integration of the Bollinger operations into our existing operations was completed in the fourth quarter of 2014. Integration costs related to the 2013 and 2014 acquisitions are expected to range between $15.0 million to $20.0 million per quarter for the remainder of 2015.

Commissions and fees - The aggregate increase in commissions and fees for the three-month period ended June 30, 2015 compared to the same period in 2014, was principally due to revenues associated with acquisitions that were made in the twelve-month period ended June 30, 2015 ($126.3 million). Commissions and fees in the three-month period ended June 30, 2015 included new business production and renewal rate increases of $89.5 million, which was partially offset by lost business of $87.8 million. Commissions increased 18% and fees increased 23% in the three-month period ended June 30, 2015 compared to the same period in 2014. Organic growth in commissions and fee revenues for the three-month period ended June 30, 2015 was 3.9% compared to 3.0% for the same period in 2014, principally due to good account retention and new business generated.

- 41 -

The aggregate increase in commissions and fees for the six-month period ended June 30, 2015 compared to the same period in 2014, was principally due to revenues associated with acquisitions that were made in the twelve-month period ended June 30, 2015 ($269.9 million). Commissions and fees in the six-month period ended June 30, 2015 included new business production and renewal rate increases of $176.7 million, which was partially offset by lost business of $157.7 million. Commissions increased 21% and fees increased 36% in the six-month period ended June 30, 2015 compared to the same period in 2014. Organic growth in commissions and fee revenues for the six-month period ended June 30, 2015 was 4.1% compared to 3.2% for the same period in 2014, principally due to good account retention and new business generated.

London Reinsurance Operation - In January 2014, we formed a start-up joint-venture with a group of notable reinsurance leaders, whereby we participated in approximately 35% of the venture’s net profits and losses. In late December 2014, the venture was reorganized and we became the controlling partner, yet still participate in approximately 35% of the venture’s net profits and losses. Accordingly, effective January 1, 2015 we are required to consolidate 100% of the venture’s results within our brokerage segment, and then reflect approximately 65% of the venture’s results in our consolidated statement of earnings in the line entitled “Net earnings attributable to noncontrolling interests” also within the brokerage segment. The organic revenue tables below only includes our approximate 35% share of the venture’s organic growth. See Note 1 to our unaudited consolidated financial statements included herein for a discussion of a change in presentation pertaining to amounts attributable to noncontrolling interests.

Items excluded from organic revenue computations yet impacting revenue comparisons for the three-month and six-month periods ended June 30, 2015 and 2014 include the following (in millions):

		2015 Organic Revenue						2014 Organic Revenue
For the Three-Month Periods Ended June 30,		2015			2014			2014			2013
Commissions and Fees
Commission revenues as reported		$	634.3		$	539.5		$	539.5		$	400.9
Fee revenues as reported			178.0			144.8			144.8			108.9
Less commission and fee revenues from acquisitions			(126.3	)		—			(153.7	)		—
Less non-owned portion of consolidated entities	*		(2.0	)		—			—			—
Less disposed of operations			—			(2.5	)		—			(1.8	)
Levelized foreign currency translation			—			(23.4	)		—			7.0
Organic base commission and fee revenues		$	684.0		$	658.4		$	530.6		$	515.0
Organic change in base commission and fee revenues			3.9	%					3.0	%
Supplemental Commissions
Supplemental commissions as reported		$	34.8		$	27.9		$	27.9		$	18.3
Less supplemental commissions from acquisitions			(3.1	)		—			(7.9	)		—
Levelized foreign currency translation			—			(1.0	)		—			—
Organic supplemental commissions		$	31.7		$	26.9		$	20.0		$	18.3
Organic change in supplemental commissions			17.8	%					9.3	%
Contingent Commissions
Contingent commissions as reported		$	22.8		$	21.8		$	21.8		$	14.5
Less contingent commissions from acquisitions			(3.7	)		—			(5.9	)		—
Levelized foreign currency translation			—			(0.5	)		—			—
Organic contingent commissions		$	19.1		$	21.3		$	15.9		$	14.5
Organic change in contingent commissions			(10.3	%)					9.7	%
Total organic change in commissions and fees, supplemental commissions and contingent commissions			4.0	%					3.4	%

- 42 -

		2015 Organic Revenue						2014 Organic Revenue
For the Six-Month Periods Ended June 30,		2015			2014			2014			2013
Commissions and Fees
Commission revenues as reported		$	1,154.0		$	951.0		$	951.0		$	727.7
Fee revenues as reported			324.1			238.2			238.2			191.2
Less commission and fee revenues from acquisitions			(269.9	)		—			(235.9	)		—
Less non-owned portion of consolidated entities	*		(10.4	)		—			—			—
Less disposed of operations			—			(6.0	)		—			(4.6	)
Levelized foreign currency translation			—			(33.0	)		—			9.4
Organic base commission and fee revenues		$	1,197.8		$	1,150.2		$	953.3		$	923.7
Organic change in base commission and fee revenues			4.1	%					3.2	%
Supplemental Commissions
Supplemental commissions as reported		$	61.7		$	53.3		$	53.3		$	35.6
Less supplemental commissions from acquisitions			(8.2	)		—			(15.2	)		—
Levelized foreign currency translation			—			(1.9	)		—			—
Organic supplemental commissions		$	53.5		$	51.4		$	38.1		$	35.6
Organic change in supplemental commissions			4.1	%					7.0	%
Contingent Commissions
Contingent commissions as reported		$	67.3		$	54.0		$	54.0		$	37.0
Less contingent commissions from acquisitions			(10.5	)		—			(10.8	)		—
Levelized foreign currency translation			—			(0.6	)		—			—
Organic contingent commissions		$	56.8		$	53.4		$	43.2		$	37.0
Organic change in contingent commissions			6.4	%					16.8	%
Total organic change in commissions and fees, supplemental commissions and contingent commissions			4.2	%					3.8	%

* We control, but own less than 50% of, certain entities and must consolidate 100% of their results. Accordingly, we have excluded the non-owned portion of those entities’ revenues from the organic revenue computation.

The following is a summary of brokerage segment acquisition activity for 2015 and 2014 (excludes the previously announced acquisition of the Boston-based William Gallagher Associates Insurance Brokers, Inc., which is expected to close in the third quarter of 2015):

		Three-month period				Six-month period
		ended June 30,				ended June 30,
		2015		2014		2015		2014
Shares issued for acquisitions and earnouts			4,041,000		1,404,000		5,321,000		2,142,000
Number of acquisitions closed			11		17		22		26
Annualized revenues acquired (in millions)		$	82.3	$	497.1	$	115.9	$	514.9
Rollover revenues recognized in period from 2014 and Q1 2015 acquisitions (in millions)		$	127.9			$	295.9
Portion of Q2 2015 acquisitions revenues recognized in period (in millions)			12.8				12.8
Total	*	$	140.7			$	308.7

* For second quarter 2015, consists of $126.3 million recognized in commissions and fees, $6.8 million in supplemental and contingent commissions and $7.6 million in investment income and gains related to premium funding operations acquired. For the six-month period 2015, consists of $269.9 million recognized in commissions and fees, $18.7 million in supplemental and contingent commissions and $20.1 million in investment income related to premium funding operations acquired.

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Supplemental and contingent commissions - Reported supplemental and contingent commission revenues recognized in 2015, 2014 and 2013 by quarter are as follows (in millions):

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		YTD
2015
Reported supplemental commissions	$	26.9	$	34.8					$	61.7
Reported contingent commissions		44.5		22.8						67.3
Reported supplemental and contingent commissions	$	71.4	$	57.6					$	129.0
2014
Reported supplemental commissions	$	25.4	$	27.9	$	24.2	$	26.5	$	104.0
Reported contingent commissions		32.2		21.8		14.4		16.3		84.7
Reported supplemental and contingent commissions	$	57.6	$	49.7	$	38.6	$	42.8	$	188.7
2013
Reported supplemental commissions	$	17.3	$	18.3	$	17.8	$	23.9	$	77.3
Reported contingent commissions		22.5		14.5		6.5		8.6		52.1
Reported supplemental and contingent commissions	$	39.8	$	32.8	$	24.3	$	32.5	$	129.4

Investment income and gains realized on books of business sales - This primarily represents interest income earned on cash, cash equivalents and restricted funds, interest income from premium financing and one-time gains related to sales of books of business, which were $3.5 million and $0.7 million, respectively, for the three-month periods ended June 30, 2015 and 2014 and $4.4 million and $1.7 million, respectively, for the six-month periods ended June 30, 2015 and 2014. The increase in investment income in the three-month and six-month periods ended June 30, 2015 compared to the same periods in 2014 is primarily due to the interest income from premium financing generated by the Crombie/OAMPS operations which were acquired on June 16, 2014.

Compensation expense - The following provides information that management believes is helpful when comparing compensation expense for the three-month and six-month periods ended June 30, 2015 with the same periods in 2014 (in millions):

	Three-month period						Six-month period
	ended June 30,						ended June 30,
	2015			2014			2015			2014
Reported amounts	$	496.0		$	420.6		$	956.3		$	773.2
Acquisition integration		(11.1	)		(12.2	)		(22.7	)		(15.8	)
Workforce related charges		(4.6	)		(1.7	)		(13.1	)		(3.2	)
Acquisition related adjustments		(2.5	)		—			(2.5	)		(1.1	)
Levelized foreign currency translation		—			(12.8	)		—			(20.5	)
Adjusted amounts	$	477.8		$	393.9		$	918.0		$	732.6
Adjusted revenues - see page 38	$	882.1		$	711.9		$	1,632.3		$	1,264.5
Adjusted ratios		54.2	%		55.3	%		56.2	%		57.9	%

The increase in compensation expense for the three-month period ended June 30, 2015 compared to the same period in 2014 was primarily due to increased headcount, salary increases, one-time compensation payments and increases in incentive compensation linked to our overall operating results ($59.9 million in the aggregate), increases in employee benefits ($10.0 million), stock compensation expense ($3.2 million), severance related costs ($2.9 million), offset by a decrease in deferred compensation ($0.6 million). The increase in employee headcount primarily relates to employees associated with the acquisitions completed in the twelve-month period ended June 30, 2015.

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The increase in compensation expense for the six-month period ended June 30, 2015 compared to the same period in 2014 was primarily due to increased headcount, salary increases, one-time compensation payments and increases in incentive compensation linked to our overall operating results ($151.3 million in the aggregate), increases in employee benefits ($21.3 million), severance related costs ($9.9 million), stock compensation expense ($2.8 million) and temporary staffing ($0.3 million), offset by a decrease in deferred compensation ($2.5 million). The increase in employee headcount primarily relates to employees associated with the acquisitions completed in the twelve-month period ended June 30, 2015.

Operating expenses - The following provides information that management believes is helpful when comparing operating expense for the three-month and six-month periods ended June 30, 2015 with the same periods in 2014 (in millions):

	Three-month period						Six-month period
	ended June 30,						ended June 30,
	2015			2014			2015			2014
Reported amounts	$	155.6		$	121.4		$	307.9		$	231.6
Acquisition integration		(11.3	)		(3.8	)		(20.5	)		(6.7	)
Workforce and lease termination related charges		(1.4	)		—			(1.4	)		(0.5	)
Levelized foreign currency translation		—			(4.2	)		—			(6.7	)
Adjusted amounts	$	142.9		$	113.4		$	286.0		$	217.7
Adjusted revenues - see page 38	$	882.1		$	711.9		$	1,632.3		$	1,264.5
Adjusted ratios		16.2	%		15.9	%		17.5	%		17.2	%

The increase in operating expense for the three-month period ended June 30, 2015 compared to the same period in 2014 was primarily due to and increases in technology expenses ($7.6 million), real estate expenses ($5.8 million), other expense ($4.2 million), outside consulting fees ($3.9 million), meeting and client entertainment expense ($3.7 million), business insurance ($3.4 million), licenses and fees ($2.4 million), employee related expense ($1.5 million), lease termination charges ($1.4 million), premium financing expense ($0.6 million) and outside services expense ($0.3 million), partially offset by favorable foreign currency translation ($0.2 million) and decreases in office supplies ($1.0 million), bad debt expense ($0.3 million) and professional and banking fees ($0.1 million). Also contributing to the increase in operating expenses in the three-month period ended June 30, 2015 were increased expenses associated with the acquisitions completed in the twelve-month period ended June 30, 2015.

The increase in operating expense for the six-month period ended June 30, 2015 compared to the same period in 2014 was primarily due to unfavorable foreign currency translation ($0.3 million) and increases in technology expenses ($20.2 million), real estate expenses ($12.5 million), outside consulting fees ($8.4 million), meeting and client entertainment expense ($7.5 million), business insurance ($7.2 million), other expense ($6.5 million), licenses and fees ($4.4 million), employee related expense ($3.0 million), professional and banking fees ($2.1 million), premium financing expense ($1.9 million), bad debt expense ($1.1 million), lease termination charges ($0.9 million), outside services expense ($0.7 million), partially offset by a decrease in office supplies ($0.6 million). Also contributing to the increase in operating expenses in the six-month period ended June 30, 2015 were increased expenses associated with the acquisitions completed in the twelve-month period ended June 30, 2015.

Depreciation - Depreciation expense in the three-month and six-month periods ended June 30, 2015 increased slightly compared to the same periods in 2014 due to expenses associated with acquisitions completed in the twelve-month period ended June 30, 2015.

Amortization - The increase in amortization expense in the three-month and six-month periods ended June 30, 2015 compared to the same periods in 2014 was due primarily to amortization expense of intangible assets associated with acquisitions completed in the twelve-month period ended June 30, 2015. Expiration lists, non-compete agreements and trade names are amortized using the straight-line method over their estimated useful lives (three to fifteen years for expiration lists, three to five years for non-compete agreements and five to ten years for trade names). Based on the results of impairment reviews during the six-month period ended June 30, 2015, we wrote off $0.5 million of amortizable intangible assets related to the brokerage segment. Based on the results of impairment reviews during the six-month period ended June 30, 2014, we wrote off $0.6 million of amortizable intangible assets related to the brokerage segment.

- 45 -

Change in estimated acquisition earnout payables - The change in expense from the change in estimated acquisition earnout payables in the three-month period ended June 30, 2015 compared to the same period in 2014, was due primarily to adjustments made to the estimated fair value of earnout obligations related to revised projections of future performance. During the three-month periods ended June 30, 2015 and 2014, we recognized $4.3 million and $3.4 million, respectively, of expense related to the accretion of the discount recorded for earnout obligations in connection with our acquisitions made in the period from 2012 to 2015. During the six-month periods ended June 30, 2015 and 2014, we recognized $8.5 million and $6.7 million, respectively, of expense related to the accretion of the discount recorded for earnout obligations in connection with our acquisitions made in the period from 2012 to 2015. In addition, during the three-month periods ended June 30, 2015 and 2014, we recognized $1.8 million and $3.7 million of expense, respectively, related to net adjustments in the estimated fair value of earnout obligations in connection with revised projections of future performance for 23 and 18 acquisitions, respectively. During the six-month periods ended June 30, 2015 and 2014, we recognized $8.2 million and $5.5 million of expense, respectively, related to net adjustments in the estimated fair value of earnout obligations in connection with revised projections of future performance for 42 and 35 acquisitions, respectively.

The amounts initially recorded as earnout payables for our 2012 to 2015 acquisitions were measured at fair value as of the acquisition date and are primarily based upon the estimated future operating results of the acquired entities over a two- to three-year period subsequent to the acquisition date. The fair value of these earnout obligations is based on the present value of the expected future payments to be made to the sellers of the acquired entities in accordance with the provisions outlined in the respective purchase agreements. In determining fair value, we estimate the acquired entity’s future performance using financial projections developed by management for the acquired entity and market participant assumptions that were derived for revenue growth and/or profitability. We estimated future earnout payments using the earnout formula and performance targets specified in each purchase agreement and these financial projections. Subsequent changes in the underlying financial projections or assumptions will cause the estimated earnout obligations to change and such adjustments are recorded in our consolidated statement of earnings when incurred. Increases in the earnout payable obligations will result in the recognition of expense and decreases in the earnout payable obligations will result in the recognition of income.

Provision for income taxes - The brokerage segment’s effective income tax rates for the three-month periods ended June 30, 2015 and 2014 were 36.0% (36.2% on a controlling interests basis) and 35.0%, respectively. The brokerage segment’s effective income tax rates for the six-month periods ended June 30, 2015 and 2014 were 35.2% (36.1% on a controlling interests basis) and 35.1%, respectively. We anticipate reporting an effective tax rate of approximately 34.0% to 36.0% in our brokerage segment for the foreseeable future.

Net earnings attributable to noncontrolling interests - The amount reported in this line for the three-month and six-month periods ended June 30, 2015 include non-controlling interest earnings of $1.2 million and $5.1 million, respectively, related to our investment in the London reinsurance operation discussed above.

Risk Management

The risk management segment accounted for 14% of our revenue during the six-month period ended June 30, 2015. The risk management segment provides contract claim settlement and administration services for enterprises that choose to self-insure some or all of their property/casualty coverages and for insurance companies that choose to outsource some or all of their property/casualty claims departments. In addition, this segment generates revenues from integrated disability management programs, information services, risk control consulting (loss control) services and appraisal services, either individually or in combination with arising claims. Revenues for risk management services are substantially in the form of fees that are generally negotiated in advance on a per-claim or per-service basis, depending upon the type and estimated volume of the services to be performed.

- 46 -

Financial information relating to our risk management segment results for the three-month and six-month periods ended June 30, 2015 as compared to the same period in 2014, is as follows (in millions, except per share, percentages and workforce data):

	Three-month period									Six-month period
	ended June 30,									ended June 30,
Statement of Earnings	2015			2014			Change			2015			2014			Change
Fees	$	189.3		$	172.6		$	16.7		$	366.4		$	336.4		$	30.0
Investment income		0.1			0.2			(0.1	)		0.2			0.6			(0.4	)
Total revenues		189.4			172.8			16.6			366.6			337.0			29.6
Compensation		109.2			103.6			5.6			216.1			207.0			9.1
Operating		47.1			42.2			4.9			87.8			78.5			9.3
Depreciation		6.2			5.1			1.1			11.5			10.1			1.4
Amortization		0.7			0.8			(0.1	)		1.4			1.6			(0.2	)
Change in estimated acquisition earnout payables		(0.5	)		(0.1	)		(0.4	)		(0.5	)		(0.1	)		(0.4	)
Total expenses		162.7			151.6			11.1			316.3			297.1			19.2
Earnings before income taxes		26.7			21.2			5.5			50.3			39.9			10.4
Provision for income taxes		9.6			7.8			1.8			18.3			14.6			3.7
Net earnings		17.1			13.4			3.7			32.0			25.3			6.7
Net earnings attributable to noncontrolling interests		—			—			—			—			—			—
Net earnings attributable to controlling interests	$	17.1		$	13.4		$	3.7		$	32.0		$	25.3		$	6.7
Diluted net earnings per share	$	0.10		$	0.08		$	0.02		$	0.19		$	0.18		$	0.01
Other information
Change in diluted net earnings per share		19	%		(20	%)					6	%		(17	%)
Growth in revenues		10	%		8	%					9	%		6	%
Organic change in fees		13	%		8	%					12	%		7	%
Compensation expense ratio		58	%		60	%					59	%		61	%
Operating expense ratio		25	%		24	%					24	%		23	%
Effective income tax rate		36	%		37	%					36	%		37	%
Workforce at end of period (includes acquisitions)											5,015			4,954
Identifiable assets at June 30										$	623.3		$	611.0
EBITDAC
Net earnings	$	17.1		$	13.4		$	3.7		$	32.0		$	25.3		$	6.7
Provision for income taxes		9.6			7.8			1.8			18.3			14.6			3.7
Depreciation		6.2			5.1			1.1			11.5			10.1			1.4
Amortization		0.7			0.8			(0.1	)		1.4			1.6			(0.2	)
Change in estimated acquisition earnout payables		(0.5	)		(0.1	)		(0.4	)		(0.5	)		(0.1	)		(0.4	)
EBITDAC	$	33.1		$	27.0		$	6.1		$	62.7		$	51.5		$	11.2
EBITDAC margin		17	%		16	%					17	%		15	%
EBITDAC growth		23	%		3	%					22	%		(3	%)

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The following provides information that management believes is helpful when comparing EBITDAC and adjusted EBITDAC for the three-month and six-month periods ended June 30, 2015 to the same period in 2014 (in millions):

			Three-month period						Six-month period
			ended June 30,						ended June 30,
			2015			2014			2015			2014
Total EBITDAC - see computation above			$	33.1		$	27.0		$	62.7		$	51.5
Workforce and lease termination related charges				0.3			0.2			0.5			0.6
Claim portfolio transfer and ramp up				—			1.5			—			2.7
Levelized foreign currency translation				—			(1.1	)		—			(2.3	)
Adjusted EBITDAC			$	33.4		$	27.6		$	63.2		$	52.5
Adjusted EBITDAC change				21.0	%		8.7	%		20.4	%		7.7	%
Adjusted EBITDAC margin - see page 38	(1	)		17.6	%		16.5	%		17.2	%		16.1	%

(1) Margin is above 16.5% annual margin target due to $1.8 million of one-time performance fee revenue related to the New South Wales Workers’ Compensation Scheme that is in run-off.

Fees - The increase in fees for the three-month period ended June 30, 2015 compared to the same period in 2014 was due primarily to revenues associated with new business and the impact of increased claim counts (total of $20.4 million), which were partially offset by lost business of $3.7 million. Organic growth in fee revenues for the three-month period ended June 30, 2015 was 13% compared to 8% for the same period in 2014.

The increase in fees for the six-month period ended June 30, 2015 compared to the same period in 2014 was due primarily to revenues associated with new business and the impact of increased claim counts (total of $40.2 million), which were partially offset by lost business of $10.2 million. Organic growth in fee revenues for the six-month period ended June 30, 2015 was 12% compared to 7% for the same period in 2014.

Items excluded from organic fee computations yet impacting revenue comparisons for the three-month and six-month periods ended June 30, 2015 and 2014 include the following (in millions):

		2015 Organic Revenue						2014 Organic Revenue
For the Three-Month Periods Ended June 30		2015			2014			2014			2013
Fees		$	182.5		$	168.1		$	168.1		$	152.5
International performance bonus fees			6.8			4.5			4.5			7.5
Fees as reported			189.3			172.6			172.6			160.0
Less fees from acquisitions			(0.2	)		—			(0.9	)		—
Levelized foreign currency translation			—			(5.8	)		—			(0.4	)
Organic fees	*	$	189.1		$	166.8		$	171.7		$	159.6
Organic change in fees			13.4	%					7.6	%

		2015 Organic Revenue						2014 Organic Revenue
For the Six-Month Periods Ended June 30		2015			2014			2014			2013
Fees		$	356.3		$	327.8		$	327.8		$	304.2
International performance bonus fees			10.1			8.6			8.6			13.2
Fees as reported			366.4			336.4			336.4			317.4
Less fees from acquisitions			(0.2	)		—			(3.1	)		—
Less South Australia ramp up fees			—			—			—			(1.4	)
Less New Zealand earthquake claims administration			—			—			—			(0.1	)
Levelized foreign currency translation			—			(9.9	)		—			(3.4	)
Organic fees	*	$	366.2		$	326.5		$	333.3		$	312.5
Organic change in fees			12.2	%					6.7	%

- 48 -

* Includes approximately $6.5 million and $4.7 million, respectively, of fee revenues in the three-month periods ended June 30, 2015 and 2014 and $11.5 million and $9.7 million, respectively of fee revenues in the six-month periods ended June 30, 2015 and 2014, related to the previously announced run-off of a contract with the New South Wales Workers Compensation Scheme in Australia.

During the second quarter 2015, we completed two acquisitions in the risk management segment with annualized revenues of $7.6 million.

Investment income - Investment income primarily represents interest income earned on our cash and cash equivalents. Investment income in the three-month and six-month periods ended June 30, 2015 remained relatively unchanged compared to the same periods in 2014.

Compensation expense - The following provides information that management believes is helpful when comparing compensation expense for the three-month and six-month periods ended June 30, 2015 with the same periods in 2014 (in millions):

	Three-month period						Six-month period
	ended June 30,						ended June 30,
	2015			2014			2015			2014
Reported amounts	$	109.2		$	103.6		$	216.1		$	207.0
Claim portfolio transfer ramp up costs		—			(0.8	)		—			(1.6	)
Workforce related charges		(0.3	)		(0.2	)		(0.5	)		(0.6	)
Levelized foreign currency translation		—			(3.6	)		—			(6.1	)
Adjusted amounts	$	108.9		$	99.0		$	215.6		$	198.7
Adjusted revenues - see page 38	$	189.4		$	167.0		$	366.6		$	327.0
Adjusted ratios		57.5	%		59.3	%		58.8	%		60.8	%

The increase in compensation expense for the three-month period ended June 30, 2015 compared to the same period in 2014 was primarily due to increased headcount and increases in salaries ($9.3 million in the aggregate), employee benefits expense ($1.4 million), stock compensation expense ($0.1 million) and severance related costs ($0.1 million), offset by a favorable foreign currency translation ($3.6 million) and decreases in claim portfolio transfer cost ($0.8 million), temporary-staffing expense ($0.8 million) and deferred compensation ($0.1 million).

The increase in compensation expense for the six-month period ended June 30, 2015 compared to the same period in 2014 was primarily due to increased headcount and increases in salaries ($16.2 million in the aggregate) and employee benefits expense ($1.9 million) and stock compensation expense ($0.2 million), offset by a favorable foreign currency translation ($6.1 million) and decreases in claim portfolio transfer cost ($1.6 million), temporary-staffing expense ($1.1 million), deferred compensation ($0.3 million) and severance related costs ($0.1 million).

Operating expenses - The following provides information that management believes is helpful when comparing operating expense for the three-month and six-month periods ended June 30, 2015 with the same periods in 2014 (in millions):

	Three-month period						Six-month period
	ended June 30,						ended June 30,
	2015			2014			2015			2014
Reported amounts	$	47.1		$	42.2		$	87.8		$	78.5
Claim portfolio transfer ramp up costs		—			(0.7	)		—			(1.1	)
Levelized foreign currency translation		—			(1.1	)		—			(1.6	)
Adjusted amounts	$	47.1		$	40.4		$	87.8		$	75.8
Adjusted revenues - see page 38	$	189.4		$	167.0		$	366.6		$	327.0
Adjusted ratios		24.9	%		24.2	%		24.0	%		23.2	%

- 49 -

The operating expense for the three-month period ended June 30, 2015 increased compared to the same period in 2014 primarily due to an unfavorable foreign currency translation ($0.1 million) and increases in business insurance ($2.7 million), outside consulting fees ($1.7 million), technology expenses ($1.3 million), professional and banking fees ($1.1 million), licenses and fees ($0.8 million), bad debt expense ($0.1 million), outside services expenses ($0.1 million), offset by decreases in other expense ($1.1 million), claim portfolio transfer cost ($0.7 million), real estate expenses ($0.4 million), office supplies ($0.4 million) and employee related expense ($0.3 million).

The operating expense for the six-month period ended June 30, 2015 increased compared to the same period in 2014 primarily due to an unfavorable foreign currency translation ($0.1 million) and increases in outside consulting fees ($3.0 million), business insurance ($3.0 million), professional and banking fees ($2.7 million), technology expenses ($2.2 million), licenses and fees ($1.1 million), meeting and client entertainment expense ($0.5 million), bad debt expense ($0.3 million) and outside services expenses ($0.2 million), offset by decreases in claim portfolio transfer cost ($1.1 million), other expense ($1.1 million), real estate expenses ($0.6 million), office supplies ($0.6 million) and employee related expense ($0.2 million).

Depreciation - Depreciation expense increased slightly in the three-month and six-month periods ended June 30, 2015 compared to the same periods in 2014 and reflects the impact of purchases of furniture, equipment and leasehold improvements related to office expansions and relocations, and expenditures related to upgrading computer systems.

Amortization - Amortization expense decreased slightly in the three-month and six-month periods ended June 30, 2015 compared to the same periods in 2014. Historically, the risk management segment has made few acquisitions. We made two and no acquisitions in this segment during the six-month periods ended June 30, 2015 and 2014, respectively.

Change in estimated acquisition earnout payables - The change in income from the change in estimated acquisition earnout payables in the three-month and six-month periods ended June 30, 2015 compared to the same period in 2014, was due primarily to adjustments made to the estimated fair value of earnout obligations related to revised projections of future performance. During the three-month and six-month periods ended June 30, 2015 and 2014, we recognized $0.5 million and $0.1 million of income, respectively, related to net adjustments in the estimated fair value of earnout obligations in connection with revised projections of future performance for one acquisition.

Provision for income taxes - The risk management segment’s effective income tax rates for the three-month periods ended June 30, 2015 and 2014 were 36.0% and 36.8%, respectively. The risk management segment’s effective income tax rates for the six-month periods ended June 30, 2015 and 2014 were 36.4% and 36.6%, respectively. We anticipate reporting an effective tax rate of approximately 34.0% to 36.0% in our risk management segment for the foreseeable future.

Diluted net earnings per share - On April 16, 2014, we closed on a secondary public offering of our common stock issuing 21.85 million shares of stock for net proceeds of $911.4 million to fund the purchase of Crombie/OAMPS, a brokerage segment acquisition. The impact to diluted net earnings per share in the risk management segment for the three-month and six-month periods ended June 30, 2015 compared to the same periods in 2014 related to the shares issued under this secondary offering was a reduction of approximately $0.01 and $0.03, respectively, per share.

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Corporate

The corporate segment reports the financial information related to our clean energy and other investments, our debt, and certain corporate and acquisition-related activities. For a detailed discussion of the nature of these investments, see Note 12 to our consolidated financial statements included herein for a summary of our investments as of June 30, 2015 and in Note 13 to our most recent Annual Report on Form 10-K as of December 31, 2014. For a detailed discussion of the nature of our debt, see Note 6 to our consolidated financial statements included herein as of June 30, 2015 and in Note 7 to our most recent Annual Report on Form 10-K as of December 31, 2014.

Financial information relating to our corporate segment results for the three-month and six-month periods ended June 30, 2015 as compared to the same periods in 2014 is as follows (in millions, except per share and percentages):

	Three-month period									Six-month period
	ended June 30,									ended June 30,
Statement of Earnings	2015			2014			Change			2015			2014			Change
Revenues from consolidated clean coal production plants	$	283.7		$	250.2		$	33.5		$	573.2		$	404.5		$	168.7
Royalty income from clean coal licenses		13.6			12.8			0.8			28.3			27.4			0.9
Loss from unconsolidated clean coal production plants		(0.3	)		(0.2	)		(0.1	)		(0.6	)		(2.7	)		2.1
Other net revenues		(0.6	)		5.8			(6.4	)		(1.5	)		25.8			(27.3	)
Total revenues		296.4			268.6			27.8			599.4			455.0			144.4
Cost of revenues from consolidated clean coal production plants		306.8			270.5			36.3			616.1			441.5			174.6
Compensation		9.9			5.8			4.1			17.9			16.1			1.8
Operating		4.4			15.6			(11.2	)		14.9			17.9			(3.0	)
Interest		26.0			21.2			4.8			51.6			37.4			14.2
Depreciation		4.1			1.0			3.1			7.4			1.9			5.5
Total expenses		351.2			314.1			37.1			707.9			514.8			193.1
Loss before income taxes		(54.8	)		(45.5	)		(9.3	)		(108.5	)		(59.8	)		(48.7	)
Benefit for income taxes		(85.0	)		(57.3	)		(27.7	)		(115.6	)		(85.0	)		(30.6	)
Net earnings		30.2			11.8			18.4			7.1			25.2			(18.1	)
Net earnings attributable to noncontrolling interests		7.1			4.5			2.6			13.7			13.3			0.4
Net earnings (loss) attributable controlling interests	$	23.1		$	7.3		$	15.8		$	(6.6	)	$	11.9		$	(18.5	)
Diluted net earnings (loss) per share	$	0.13		$	0.05		$	0.08		$	(0.04	)	$	0.08		$	(0.13	)
Identifiable assets at June 30										$	1,198.7		$	1,390.7
EBITDAC
Net earnings	$	30.2		$	11.8		$	18.4		$	7.1		$	25.2		$	(18.1	)
Benefit for income taxes		(85.0	)		(57.3	)		(27.7	)		(115.6	)		(85.0	)		(30.6	)
Interest		26.0			21.2			4.8			51.6			37.4			14.2
Depreciation		4.1			1.0			3.1			7.4			1.9			5.5
EBITDAC	$	(24.7	)	$	(23.3	)	$	(1.4	)	$	(49.5	)	$	(20.5	)	$	(29.0	)

Revenues - Revenues in the corporate segment consist of the following:

• Revenues from consolidated clean coal production plants represents revenues from the consolidated IRC Section 45 facilities that we operate and control under lease arrangements, and the investments in which we have a majority ownership position and maintain control over the operations of the related plants, including those that are currently not operating. When we relinquish control in connection with the sale of majority ownership interests in our investments, we deconsolidate these operations.

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The increase in revenues from consolidated clean coal production plants for the three-month and six-month periods ended June 30, 2015, compared to the same period in 2014, was due primarily to increased production at both the leased facilities and facilities in which we have a majority ownership position, including the impact of the facilities we consolidated in 2014.

• Royalty income from clean coal licenses represents revenues related to Chem-Mod LLC. As of June 30, 2015, we held a 46.54% controlling interest in Chem-Mod. As Chem-Mod’s manager, we are required to consolidate its operations.

The small increase in royalty income in the three-month and six-month periods ended June 30, 2015, compared to the same periods in 2014, was due to an increase in the production of refined coal by Chem-Mod’s licensees.

Expenses related to royalty income of Chem-Mod in the three-month periods ended June 30, 2015 and 2014, were $0.9 million and $2.1 million, respectively. Expenses related to royalty income of Chem-Mod in the six-month periods ended June 30, 2015 and 2014, were $1.6 million and $2.5 million, respectively.

• Loss from unconsolidated clean coal production plants represents our equity portion of the pretax operating results from the unconsolidated clean coal production plants. The production of refined coal generates pretax operating losses.

The losses in the three-month and six-month periods ended June 30, 2015 and 2014 were low because the vast majority of our operations are now consolidated.

• In first quarter 2014, we recognized a $1.0 million impairment loss related to two of our clean coal production plants. In first quarter 2014, we recognized a gain of $22.6 million in connection with the acquisition of an additional ownership interest in seven 2009 Era Plants and five 2011 Era Plants from a co-investor. See Note 12 to the unaudited consolidated financial statements for additional discussion of these acquisition transactions. We have consolidated the operations of the limited liability companies that own these plants effective as of the acquisition date. Also in first quarter 2014, we recognized a $2.0 million impairment loss, under equity method accounting, of an additional 4% investment in the global operations of C-Quest Technologies LLC and C-Quest Technologies International LLC.

Cost of revenues - Cost of revenues from consolidated clean coal production plants for the three-month and six-month periods ended June 30, 2015 and 2014, consists of the cost of coal, labor, equipment maintenance, chemicals, supplies, management fees and depreciation incurred by the clean coal production plants to generate the consolidated revenues discussed above, including the costs to run the leased facilities. The increases in the three-month and six-month periods ended June 30, 2015, compared to the same periods in 2014, were primarily due to increased production from the increased interests in the twelve plants we acquired on March 1, 2014.

Compensation expense - Compensation expense in the three-month periods ended June 30, 2015 and 2014, respectively, includes salary and benefit expenses of $3.1 million and $2.5 million and incentive compensation of $6.8 million and $3.3 million, respectively. The increase in salary and benefits expense for the three-month period ended June 30, 2015 compared to the same period in 2014, was due primarily to additional staff involved in the corporate related operations and governance. The increase in incentive compensation for the three-month period ended June 30, 2015 compared to the same period in 2014 is due primarily to the following: the increased 2015 clean coal production and related tax credit generation, efforts toward 2015 corporate matters and the level of acquisition and integration activity in 2015.

Compensation expense in the six-month periods ended June 30, 2015 and 2014, respectively, includes salary and benefit expenses of $7.1 million and $4.4 million and incentive compensation of $10.8 million and $11.7 million, respectively. The increase in salary and benefits expense for the six-month period ended June 30, 2015 compared to the same period in 2014, was due primarily to additional staff involved in the corporate related operations and governance. The slight increase in incentive compensation for the six-month period ended June 30, 2015 compared to the same period in 2014 is due primarily to the following: the increased 2015 clean coal production and related tax credit generation, efforts toward 2015 corporate matters and the level of acquisition and integration activity in 2015.

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Operating expenses - Operating expense in the three-month period ended June 30, 2015 includes banking and related fees of $0.7 million, external professional fees and other due diligence costs related to second quarter 2015 acquisitions of $1.3 million, and other corporate and clean energy related expenses of $2.4 million.

Operating expense in the six-month period ended June 30, 2015 includes banking and related fees of $1.4 million, external professional fees and other due diligence costs related to first quarter 2015 acquisitions of $2.9 million, other corporate and clean energy related expenses of $6.8 million and a biannual company-wide meeting ($3.8 million).

Operating expense in the three-month period ended June 30, 2014 includes banking and related fees of $0.7 million, external professional fees and other due diligence costs related to second quarter 2014 acquisitions of $12.5 million and other corporate operating and clean energy related expenses of $2.4 million.

Operating expense in the six-month period ended June 30, 2014 includes banking and related fees of $1.2 million, external professional fees and other due diligence costs related to second quarter 2014 acquisitions of $13.3 million and other corporate operating and clean energy related expenses of $3.4 million.

Interest expense - The increase in interest expense for the three-month and six-month periods ended June 30, 2015, compared to the same period in 2014, was due to the following:

	Three-month			Six-month
	period ended			period ended
Change in interest expense related to	June 30, 2015			June 30, 2015
Interest on the $600.0 million note funded on February 27, 2014	$	—		$	4.2
Interest on the $700.0 million note funded on June 24, 2014		6.6			14.0
Interest on borrowings from our Credit Agreement		—			(0.5	)
Interest on the $100.0 million Series A Note that was paid off on August 3, 2014		(1.6	)		(3.1	)
Capitalization of interest costs related to the purchase and development of our new headquarters building		(0.2	)		(0.4	)
Net change in interest expense	$	4.8		$	14.2

The capitalization of interest costs related to the purchase and development of our new headquarters building will occur until the development of it is completed, which is estimated to be done in the latter part of 2016.

Depreciation - Depreciation expense in the three-month and six-month periods ended June 30, 2015 increased significantly compared to the same period in 2014, and primarily relates to the assets of the additional ownership interests in the plants that we acquired from co-investors in the first quarter of 2014.

Benefit for income taxes - Our consolidated effective tax rate for the three-month period ended June 30, 2015 was (14.9)% compared to (1.6)% for the same period in 2014. Our consolidated effective tax rate for the six-month period ended June 30, 2015 was (12.9)% compared to (2.9)% for the same period in 2014. The effective tax rates for the three-month periods ended June 30, 2015 and 2014 were lower than the statutory rate primarily due to the amount of IRC Section 45 tax credits recognized during the respective periods. U.S. GAAP accounting requires us to estimate at each quarter end, an expected annual effective tax rate based on, among other factors, the estimated annual amount of tax credits we will generate in the current year, and recognize these estimated tax credits each quarter based on estimated company-wide quarterly earnings before income taxes. This accounting will cause a difference in the amount of tax credits recognized in the financial statements compared to the amount of tax credits actually produced. There were $68.6 million and $64.6 million of tax credits recognized in the six-month periods ended June 30, 2015 and 2014, respectively. There were $78.7 million and $65.5 million of tax credits produced in the six-month periods ended June 30, 2015 and 2014, respectively.

Net earnings attributable to noncontrolling interests - The amounts reported in this line for the three-month periods ended June 30, 2015 and 2014 include non-controlling interest earnings of $8.5 million and $6.5 million respectively related to our investment in Chem-Mod LLC. The amounts reported in this line for the six-month periods ended June 30, 2015 and 2014 include non-controlling interest earnings of $17.7 million and $15.3 million respectively related to our investment in Chem-Mod LLC. As of June 30, 2015 and 2014, we held a 46.54% controlling interest in Chem-Mod.

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The following provides information that we believe is helpful when comparing our operating results for the three-month and six-month periods ended June 30, 2015 and 2014 for the corporate segment (in millions):

	2015								2014 - Adjusted (1)
	Pretax			Income		Net			Pretax			Income			Net
	Earnings			Tax		Earnings			Earnings			Tax			Earnings
Three-Month Periods Ended June 30,	(Loss)			Benefit		(Loss)			(Loss)			Benefit			(Loss)
Interest and banking costs	$	(26.6	)	$	10.6	$	(16.0	)	$	(21.7	)	$	8.7		$	(13.0	)
Clean energy investments (1)		(25.3	)		70.3		45.0			(15.9	)		55.4			39.5
Acquisition costs		(1.5	)		0.2		(1.3	)		(9.1	)		0.5			(8.6	)
Corporate		(8.5	)		3.9		(4.6	)		(3.3	)		(2.8	)		(6.1	)
Adjusted 2nd quarter	$	(61.9	)	$	85.0		23.1		$	(50.0	)	$	61.8			11.8
Impact from re-consolidation accounting gains (2)							—									(4.5	)
Reported 2nd quarter						$	23.1								$	7.3

	2015								2014 - Adjusted (1)
	Pretax			Income		Net			Pretax			Income			Net
	Earnings			Tax		Earnings			Earnings			Tax			Earnings
Six-Month Periods Ended June 30,	(Loss)			Benefit		(Loss)			(Loss)			Benefit			(Loss)
Interest and banking costs	$	(52.9	)	$	21.1	$	(31.8	)	$	(38.3	)	$	15.3		$	(23.0	)
Clean energy investments (1)		(48.6	)		88.1		39.5			(37.1	)		76.4			39.3
Acquisition costs		(3.2	)		0.4		(2.8	)		(12.0	)		0.9			(11.1	)
Corporate		(17.5	)		6.0		(11.5	)		(8.3	)		(1.6	)		(9.9	)
Adjusted six months	$	(122.2	)	$	115.6		(6.6	)	$	(95.7	)	$	91.0			(4.7	)
Impact from re-consolidation accounting gains (2)							—									16.6
Reported six months						$	(6.6	)							$	11.9

(1) Pretax earnings for the second quarter are presented net of amounts attributable to noncontrolling interests of $7.1 million in 2015 and $4.5 million in 2014. Pretax earnings for the six month periods ended June 30 are presented net of amounts attributable to noncontrolling interests of $13.7 million in 2015 and $13.3 million in 2014.

(2) Excludes non-cash tax gain from re-consolidation accounting gains related to clean-energy investments recorded in the first quarter of 2014 and related tax credit recognition.

Interest and banking costs includes expenses related to our debt. Clean energy investments include the operating results related to our investments in clean coal production plants and Chem-Mod. Acquisition costs include professional fees, due diligence and other costs incurred related to our acquisitions. Corporate consists of overhead allocations mostly related to corporate staff compensation and costs related to a biannual company-wide award, cross-selling and motivational meeting for our production staff and field management.

Clean energy investments - We have investments in limited liability companies that own 29 clean coal production plants developed by us and five clean coal production plants we purchased from a third party on September 1, 2013. All 34 plants produce refined coal using propriety technologies owned by Chem-Mod. We believe that the production and sale of refined coal at these plants are qualified to receive refined coal tax credits under IRC Section 45. The fourteen plants which were placed in service prior to December 31, 2009 (which we refer to as the 2009 Era Plants) can receive tax credits through 2019 and the twenty plants which were placed in service prior to December 31, 2011 (which we refer to as the 2011 Era Plants) can receive tax credits through 2021.

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The following table provides a summary of our clean coal plant investments as of June 30, 2015 (in millions):

			Our Portion of Estimated
Investments that own 2009 Era Plants	Our Tax-Effected Book Value At June 30, 2015		Additional Required Tax-Effected Capital Investment		Ultimate Annual After-tax Earnings
10 Under long-term production contracts	$	8.1	$	—	$	20.0
4 In negotiations for long-term production contracts		1.2		Not Estimable		Not Estimable
Investments that own 2011 Era Plants
16 Under long-term production contracts		34.3		—		75.0
4 In negotiations for long-term production contracts		1.3		Not Estimable		Not Estimable

The information in the table above under the caption Our Portion of Estimated Ultimate Annual After-Tax Earnings reflects management’s current best estimate of the ultimate future potential annual after-tax earnings based on production estimates from the host utilities. However, host utilities do not consistently utilize the refined coal plants at ultimate production levels due to seasonal electricity demand, as well as for many operational, regulatory and environmental compliance reasons. Please refer to our filings with the SEC, including Item 1A, “Risk Factors,” on pages 16, 17 and 18 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, for a more detailed discussion of these and other factors could impact the information above.

Our investment in Chem-Mod generates royalty income from refined coal plants owned by those limited liability companies in which we invest as well as refined coal production plants owned by other unrelated parties. Based on current production estimates provided by licensees, we believe Chem-Mod could generate for us an average of approximately $4.0 million of net after-tax earnings per quarter.

Financial Condition and Liquidity

Liquidity describes the ability of a company to generate sufficient cash flows to meet the cash requirements of its business operations. The insurance brokerage industry is not capital intensive. Historically, our capital requirements have primarily included dividend payments on our common stock, repurchases of our common stock, funding of our investments, acquisitions of brokerage and risk management operations and capital expenditures.

Cash Flows From Operating Activities

Historically, we have depended on our ability to generate positive cash flows from operations to meet our cash requirements. We believe that our cash flows from operations and borrowings under our Credit Agreement will provide us with adequate resources to meet our liquidity needs in the foreseeable future. To fund acquisitions made during 2014 and for the six-month period ended June 30, 2015, we relied on a combination of proceeds from borrowings under our Credit Agreement; proceeds from $600.0 million and $700.0 million of senior unsecured notes issued in February 2014 and June 2014, respectively; a secondary public offering of our common stock in April 2014, whereby 21.85 million shares of our stock were issued for net proceeds, after underwriting discounts and other expenses related to this offering, of $911.4 million; and net proceeds of approximately $149.2 million and $29.0 million from sales of our common stock under our at-the-market equity program during the second quarter of 2015 and the fourth quarter of 2014, respectively.

Cash provided by operating activities was $81.7 million and $222.8 million for the six-month periods ended June 30, 2015 and 2014, respectively. The decrease in cash provided by operating activities during the six-month period ended June 30, 2015 compared to the same period in 2014 was primarily due to unfavorable timing differences in the payment of accrued liabilities and unfavorable timing differences in the receipts and disbursements of fiduciary funds in 2015 compared to 2014. In addition, cash provided by operating activities for the six-month period ended June 30, 2015 was adversely impacted by an unrealized foreign currency measurement loss of $59.1 million compared to an unrealized foreign currency measurement gain of $33.8 million for the same period in 2014. Also, contributing to the decrease in cash provided by operating activities between 2015 and 2014 was cash payments related to compensation-based retention agreements. During the second quarter 2015, we entered into compensation-based retention agreements with certain key employees of our international brokerage operations. We estimate that these retention agreements will add approximately $3.0 to $4.0 million per quarter to our compensation expense. Our cash flows from operating activities are primarily derived

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from our earnings from operations, as adjusted for realized gains and losses, and our non-cash expenses, which include depreciation, amortization, change in estimated acquisition earnout payables, deferred compensation, restricted stock and stock-based and other non-cash compensation expenses. Cash provided by operating activities can be unfavorably impacted by the amount of IRC Section 45 tax credits recognized compared to the amount of tax credits actually used during the respective periods. Excess tax credits produced during the period result in an increase to our deferred tax assets, which is a net use of cash related to operating activities. Please see “Clean energy investments” below for more information on their potential future impact on cash provided by operating activities.

When assessing our overall liquidity, we believe that the focus should be on net earnings as reported in our consolidated statement of earnings, adjusted for non-cash items (i.e., EBITDAC), and cash provided by operating activities in our consolidated statement of cash flows. Consolidated EBITDAC was $385.7 million and $328.5 million for the six-month periods ended June 30, 2015 and 2014, respectively. Net earnings attributable to controlling interest were $161.2 million and $158.3 million for the six-month periods ended June 30, 2015 and 2014, respectively. We believe that EBITDAC items are indicators of trends in liquidity. From a balance sheet perspective, we believe the focus should not be on premiums and fees receivable, premiums payable or restricted cash for trends in liquidity. Net cash flows provided by operations will vary substantially from quarter to quarter and year to year because of the variability in the timing of premiums and fees receivable and premiums payable. We believe that in order to consider these items in assessing our trends in liquidity, they should be looked at in a combined manner, because changes in these balances are interrelated and are based on the timing of premium payments, both to and from us. In addition, funds legally restricted as to our use relating to premiums and clients’ claim funds held by us in a fiduciary capacity are presented in our consolidated balance sheet as “Restricted Cash” and have not been included in determining our overall liquidity.

Our policy for funding our defined benefit pension plan is to contribute amounts at least sufficient to meet the minimum funding requirements under the IRC. The Employee Retirement Security Act of 1974, as amended (which we refer to as ERISA), could impose a minimum funding requirement for our plan. We are not required to make any minimum contributions to the plan for the 2015 plan year nor were we required to make any minimum contributions to the plan for the 2014 plan year. Funding requirements are based on the plan being frozen and the aggregate amount of our historical funding. The plan’s actuaries determine contribution rates based on our funding practices and requirements. Funding amounts may be influenced by future asset performance, the level of discount rates and other variables impacting the assets and/or liabilities of the plan. In addition, amounts funded in the future, to the extent not due under regulatory requirements, may be affected by alternative uses of our cash flows, including dividends, acquisitions and common stock repurchases. We did not make any discretionary contributions to the plan during the six-month periods ended June 30, 2015 and 2014. We are not considering making additional discretionary contributions to the plan in 2015, but may be required to make significantly larger minimum contributions to the plan in future periods.

In August 2014, we decided to pursue a pension de-risking strategy to reduce the size of our long-term U.S. defined benefit pension plan obligations and the volatility of these obligations on our balance sheet. On September 12, 2014, the fiduciaries of the plan began offering certain former employees who were participants in the plan, the option of receiving the value of their pension benefit in a lump sum payment or as an accelerated reduced annuity, in lieu of monthly annuity payments when they retire. The voluntary offer was made to approximately 2,500 terminated, vested participants in the plan whose employment terminated with the company prior to August 1, 2014 and who had not commenced benefit payments as of November 1, 2014. Eligible participants had from September 12, 2014 to November 12, 2014 to accept the offer, and the lump-sum payments were made in November and December of 2014, and the accelerated reduced annuity payments began as of December 1, 2014. The aggregate lump sum payout made in the fourth quarter of 2014 was $43.3 million. All payouts related to this offer were made using assets from the plan. This lump sum payout project reduced the Plan’s pension benefit obligation by approximately $60.0 million, while improving its pension underfunding by almost $17.0 million as of December 31, 2014. Due to this significant obligation settlement, we incurred a non-cash pre-tax charge of approximately $12.0 million in the fourth quarter of 2014, as a result of the U.S. GAAP requirement to expense the portion of the unrealized actuarial losses currently recognized as accumulated other comprehensive loss, based on a ratio of the liability settled to the total liability within the plan at December 31, 2014.

Cash Flows From Investing Activities

Capital Expenditures - Net capital expenditures were $42.7 million and $42.1 million for the six-month periods ended June 30, 2015 and 2014, respectively. In 2015, we expect total expenditures for capital improvements to be approximately $120.0 million, primarily related to expenditures on our new corporate headquarters building, office moves and expansions and updating computer systems and equipment.

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Acquisitions - Cash paid for acquisitions, net of cash acquired, were $63.5 million and $1,402.0 million in the six-month periods ended June 30, 2015 and 2014, respectively. In addition, during the six-month period ended June 30, 2015, we issued 5.3 million shares ($250.0 million) of our common stock as payment for a portion of the total consideration paid for 2015 acquisitions and earnout payments made in 2015. During the six-month period ended June 30, 2014, we issued 1.9 million shares ($82.4 million) of our common stock as payment for consideration paid for 2014 acquisitions and earnout payments made in 2014. We completed twenty-four acquisitions and twenty-six acquisitions in the six-month periods ended June 30, 2015 and 2014, respectively. Annualized revenues of businesses acquired in the six-month periods ended June 30, 2015 and 2014 totaled approximately $123.5 million and $514.9 million, respectively. In the six-month period ended June 30, 2015, we funded substantially all of our acquisitions activity using a mix of our common stock, debt and cash from operations. We expect to use debt, cash from operations and our common stock to fund all or a portion of acquisitions we complete through the remainder of 2015.

Dispositions - During the six-month periods ended June 30, 2015 and 2014, we sold several books of business and recognized one-time gains of $4.4 million and $1.7 million, respectively. We received cash proceeds of $4.4 million and $2.7 million related to the 2015 and 2014 transactions, respectively.

Clean Energy Investments - During the period 2009 through 2015, we have made significant investments in clean energy operations capable of producing refined coal that we believe qualifies for tax credits under IRC Section 45. Our current estimate of the 2015 annual after-tax earnings, including IRC Section 45 tax credits, which will be produced from all of our clean energy investments in 2015, is $98.5 million to $107.5 million. The IRC Section 45 tax credits generate positive cash flow by reducing the amount of Federal income taxes we pay, which is offset by the operating expenses of the plants, by capital expenditures related to the redeployment and in some cases the relocation of refined coal plants. We anticipate positive net cash flow related to IRC Section 45 activity in 2015. However, there are several variables that can impact net cash flow from clean energy investments in any given year. Therefore, accurately predicting positive or negative cash flow in particular future periods is not possible at this time. Nonetheless, if current ownership interests remain the same, if capital expenditures related to redeployment and relocation of refined coal plants remain at current levels, and if we continue to generate sufficient taxable income to use the tax credits produced by our IRC Section 45 investments, we anticipate that these investments will continue to generate positive net cash flows for the period 2015 through 2021. While we cannot accurately forecast the cash flow impact in any particular period, we anticipate that the net cash flow impact of these investments will be positive overall. Please see “Clean energy investments” on pages 54 and 55 for a more detailed description of these investments and their risks and uncertainties.

Cash Flows From Financing Activities

We have an unsecured multicurrency credit agreement (which we refer to as the Credit Agreement), which expires on September 19, 2018, with a group of fifteen financial institutions. Our Credit Agreement provides for a revolving credit commitment of up to $600.0 million, of which up to $75.0 million may be used for issuances of standby or commercial letters of credit and up to $50.0 million may be used for the making of swing loans, as defined in the Credit Agreement. We may from time to time request, subject to certain conditions, an increase in the revolving credit commitment up to a maximum aggregate revolving credit commitment of $850.0 million. At June 30, 2015, $155.0 million of borrowings were outstanding under the Credit Agreement. Due to borrowings and $22.6 million of outstanding letters of credit, $422.4 million remained available under the Credit Agreement at June 30, 2015.

We use the Credit Agreement to post letters of credit and to borrow funds to supplement our operating cash flows from time to time. In the six-month period ended June 30, 2015, we borrowed $263.0 million and repaid $248.0 million under our Credit Agreement. In the six-month period ended June 30, 2014, we borrowed $870.4 million and repaid $1,247.9 million under the Credit Agreement. Principal uses of the 2015 and 2014 borrowings were to fund acquisitions, make earnout payments related to acquisitions and for general corporate purposes.

We have a secured revolving loan facility (which we refer to as the Premium Financing Debt Facility), that provides funding for the three Australian (AU) and New Zealand (NZ) premium finance subsidiaries that we acquired on June 16, 2014. The Premium Financing Debt Facility is comprised of: (i) Facility B, which is separated into AU$150.0 million and NZ$35.0 million tranches, (ii) Facility C, an AU$25.0 million equivalent multi-currency overdraft tranche and (iii) Facility D, a NZ$15.0 million equivalent multi-currency overdraft tranche. The Premium Financing Debt Facility expires May 18, 2017. At June 30, 2015, $91.6 million of borrowings were outstanding under the Premium Financing Debt Facility. In the six-month period ended June 30, 2015, we had a net reduction in the borrowings outstanding under the Premium Financing Debt Facility of $36.3 million.

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On June 24, 2014, we borrowed $700.0 million of private placement debt which was used to fund acquisitions and for general corporate purposes. On December 20, 2013, we entered into a note purchase agreement for private placement debt of $600.0 million that funded on February 27, 2014. We used the proceeds primarily to pay down our line of credit facility. On August 3, 2014, $100.0 million of our private placement debt matured and was paid off. At June 30, 2015, we had $2,125.0 million of corporate-related borrowings outstanding under separate note purchase agreements entered into in the period from 2007 to 2014 and a cash and cash equivalent balance of $321.7 million. See Note 6 to our unaudited consolidated financial statements for a discussion of the terms of the note purchase agreements, the Credit Agreement and the Premium Financing Debt Facility.

The note purchase agreements, the Credit Agreement and the Premium Financing Debt Facility contain various financial covenants that require us to maintain specified financial ratios. We were in compliance with these covenants at June 30, 2015.

Dividends - Our board of directors determines our dividend policy. Our board of directors determines dividends on our common stock on a quarterly basis after considering our available cash from earnings, our anticipated cash needs and current conditions in the economy and financial markets.

In the six-month period ended June 30, 2015, we declared $126.4 million in cash dividends on our common stock, or $0.37 per common share, a 3% increase over the six-month period ended June 30, 2014. On July 23, 2015, we announced a quarterly dividend for third quarter 2015 of $0.37 per common share. If the dividend is maintained at $0.37 per common share throughout 2015, the dividend level will result in annualized net cash used by financing activities in 2015 of approximately $256.0 million (based on the number of outstanding shares as of June 30, 2015) or an anticipated increase in cash used of approximately $32.9 million compared to 2014. We make no assurances regarding the amount of any future dividend payments.

Shelf Registration Statement - On November 20, 2013, we filed a shelf registration statement on Form S-3 with the SEC, registering the offer and sale from time to time, of an indeterminate amount of our common stock. We have used this registration statement to register shares sold under our at-the-market equity program and the secondary public offering referred to below. The availability of the potential liquidity under this shelf registration statement depends on investor demand, market conditions and other factors. We make no assurances regarding when, or if, we will issue any additional shares under this registration statement. On February 14, 2014 and April 2, 2015, we filed shelf registration statements on Form S-4 with the SEC, each registering 8.0 million shares of our common stock that we may offer and issue from time to time in connection with future acquisitions of other businesses, assets or securities.

At-the-Market Equity Program - On November 20, 2013, we entered into an Equity Distribution Agreement with Morgan Stanley & Co. LLC, pursuant to which we may offer and sell, from time to time, up to $200 million (of which $15.6 million is remaining) of our common stock through Morgan Stanley as sales agent. Pursuant to the agreement, shares may be sold by means of ordinary brokers’ transactions, including on the New York Stock Exchange, at market prices prevailing at the time of sale, at prices related to the prevailing market prices, or at negotiated prices, in block transactions, or as otherwise agreed upon by us and Morgan Stanley.

During the second quarter ended June 30, 2015, we sold 3,118,807 shares of our common stock under the program at a weighted average price of $48.33 per share, resulting in net proceeds, after sales commissions of approximately $1.5 million to Morgan Stanley, of approximately $149.2 million.

Common Stock Issuances - Another source of liquidity to us is the issuance of our common stock pursuant to our stock option and employee stock purchase plans. Proceeds from the issuance of common stock under these plans for the six-month periods ended June 30, 2015 and 2014, were $39.0 million and $36.6 million, respectively. On May 13, 2014, our stockholders approved the 2014 Long-Term Incentive Plan (which we refer to as the LTIP), which replaced our previous stockholder-approved 2011 Long-Term Incentive Plan. All of our officers, employees and non-employee directors are eligible to receive awards under the LTIP. Awards which may be granted under the LTIP include non-qualified and incentive stock options, stock appreciation rights, restricted stock units and performance units, any or all of which may be made contingent upon the achievement of performance criteria. Stock options with respect to 7.0 million shares (less any shares of restricted stock issued under the LTIP – 1.5 million shares of our common stock were available for this purpose as of June 30, 2015) were available for grant under the LTIP at June 30, 2015. Our employee stock purchase plan allows our employees to purchase our common stock at 95% of its fair market value. Proceeds from the issuance of our common stock related to these plans have contributed favorably to net cash provided by financing activities in the six-month periods ended June 30, 2015 and 2014, and we believe this favorable trend will continue in the foreseeable future.

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Outlook - We believe that we have sufficient capital to meet our short- and long-term cash flow needs. Except for 2008 and 2005, our earnings before income taxes, adjusted for non-cash items, have increased year over year since 1991. In 2008, earnings before income taxes were adversely impacted by charges related to real estate lease terminations, severance, litigation, impairments of intangible assets and the adverse impact of foreign currency translation. In 2005, earnings before income taxes were adversely impacted by charges incurred for litigation and retail contingent commission related matters and claims handling obligations. We expect the historically favorable trend in earnings before income taxes, adjusted for non-cash items, to continue in the foreseeable future because we intend to continue to expand our business through organic growth from existing operations and growth through acquisitions. Additionally, we anticipate a favorable impact on the amount we will pay the IRS in 2015 and in future years based on anticipated tax credits from IRC Section 45 investments. We also anticipate that we will continue to use cash flows from operations and, if needed, borrowings under the Credit Agreement and private placement debt (described above under “Cash Flows From Financing Activities”) and our common stock to fund acquisitions. In addition, we may from time to time consider other alternatives for longer-term funding sources. Such alternatives could include raising additional capital through public or private debt offerings, equity markets, or restructuring our operations. See “Litigation and Regulatory Matters” under “Results of Operations - Brokerage” above for information regarding an investigation by the IRS into our micro-captive advisory services, as well as certain matters relating to our operations in the U.K., which could impact our liquidity depending on how such matters are resolved.

Contractual Obligations and Commitments

In connection with our investing and operating activities, we have entered into certain contractual obligations and commitments. See Note 13 to our unaudited consolidated financial statements for a discussion of these obligations and commitments. In addition, see Note 14 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014 for additional discussion of these obligations and commitments.

Off-Balance Sheet Arrangements

See Notes 6, 12 and 13 to the unaudited consolidated financial statements for a discussion of our off-balance sheet arrangements. In addition, see Notes 7, 13 and 14 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014 for additional discussion of these off-balance sheet arrangements.

Critical Accounting Policies

There have been no changes in our critical accounting policies, which include revenue recognition, income taxes and intangible assets/earnout obligations, as discussed in our Annual Report on Form 10-K for the year ended December 31, 2014.

Business Combinations and Dispositions

See Note 3 to the unaudited consolidated financial statements for a discussion of our business combinations during the six-month period ended June 30, 2015. We did not have any material dispositions during the six-month periods ended June  30, 2015 and 2014.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to various market risks in our day to day operations. Market risk is the potential loss arising from adverse changes in market rates and prices, such as interest and foreign currency exchange rates and equity prices. The following analyses present the hypothetical loss in fair value of the financial instruments held by us at June 30, 2015 that are sensitive to changes in interest rates. The range of changes in interest rates used in the analyses reflects our view of changes that are reasonably possible over a one-year period. This discussion of market risks related to our consolidated balance sheet includes estimates of future economic environments caused by changes in market risks. The effect of actual changes in these market risk factors may differ materially from our estimates. In the ordinary course of business, we also face risks that are either nonfinancial or unquantifiable, including credit risk and legal risk. These risks are not included in the following analyses.

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Our invested assets are primarily held as cash and cash equivalents, which are subject to various market risk exposures such as interest rate risk. The fair value of our portfolio of cash and cash equivalents at June 30, 2015 approximated its carrying value due to its short-term duration. We estimated market risk as the potential decrease in fair value resulting from a hypothetical one-percentage point increase in interest rates for the instruments contained in the cash and cash equivalents investment portfolio. The resulting fair values were not materially different from the carrying values at June 30, 2015.

At June 30, 2015, we had $2,125.0 million of borrowings outstanding under our various note purchase agreements. The aggregate estimated fair value of these borrowings at June 30, 2015 was $2,243.7 million due to their long-term duration and fixed interest rates associated with these debt obligations. No active or observable market exists for our private placement long-term debt. Therefore, the estimated fair value of this debt is based on the income valuation approach, which is a valuation technique that converts future amounts (for example, cash flows or income and expenses) to a single current (that is, discounted) amount. The fair value measurement is determined on the basis of the value indicated by current market expectations about those future amounts. Because our debt issuances generate a measurable income stream for each lender, the income approach was deemed to be an appropriate methodology for valuing the private placement long-term debt. The methodology used calculated the original deal spread at the time of each debt issuance, which was equal to the difference between the yield of each issuance (the coupon rate) and the equivalent benchmark treasury yield at that time. The market spread as of the valuation date was calculated, which is equal to the difference between an index for investment grade insurers and the equivalent benchmark treasury yield today. An implied premium or discount to the par value of each debt issuance based on the difference between the origination deal spread and market as of the valuation date was then calculated. The index we relied on to represent investment graded insurers was the Bloomberg Valuation Services (BVAL) U.S. Insurers BBB index. This index is comprised primarily of insurance brokerage firms and was representative of the industry in which we operate. For the purposes of our analysis, the average BBB rate was assumed to be the appropriate borrowing rate for us based on our current estimated credit rating.

We estimated market risk as the potential impact on the value of the debt recorded in our consolidated balance sheet resulting from a hypothetical one-percentage point decrease in our weighted average borrowing rate at June 30, 2015 and the resulting fair values would have been $260.1 million higher than their carrying value (or $2,385.1 million). We estimated market risk as the potential impact on the value of the debt recorded in our consolidated balance sheet resulting from a hypothetical one-percentage point increase in our weighted average borrowing rate at June 30, 2015 and the resulting fair values would have been $11.6 million lower than their carrying value (or $2,113.4 million).

As of June 30, 2015, we had $155.0 million of borrowings outstanding under our Credit Agreement. The fair value of these borrowings approximate their carrying value due to their short-term duration and variable interest rates associated with these debt obligations. Market risk is estimated as the potential increase in fair value resulting from a hypothetical one-percentage point decrease in our weighted average short-term borrowing rate at June 30, 2015, and the resulting fair value is not materially different from their carrying value.

At June 30, 2015, we had $91.6 million of borrowings outstanding under our Premium Financing Debt Facility. The fair value of these borrowings approximate their carrying value due to their short-term duration and variable interest rates associated with these debt obligations. Market risk is estimated as the potential increase in fair value resulting from a hypothetical one-percentage point decrease in our weighted average short-term borrowing rate at June 30, 2015, and the resulting fair value is not materially different from their carrying value.

We are subject to foreign currency exchange rate risk primarily from one of our larger U.K. based brokerage subsidiaries that incurs expenses denominated primarily in British pounds while receiving a substantial portion of its revenues in U.S. dollars. In addition, we are subject to foreign currency exchange rate risk from our Australian, Canadian, Indian, Jamaican, New Zealand, Norwegian, Singaporean and various Caribbean operations because we transact business in their local denominated currencies. Foreign currency gains (losses) related to this market risk are recorded in earnings before income taxes as transactions occur. Assuming a hypothetical adverse change of 10% in the average foreign currency exchange rate for the six-month period ended June 30, 2015 (a weakening of the U.S. dollar), earnings before income taxes would have decreased by approximately $3.7 million. Assuming a hypothetical favorable change of 10% in the average foreign currency exchange rate for the six-month period ended June 30, 2015 (a strengthening of the U.S. dollar), earnings before income taxes would have increased by approximately $3.2 million. We are also subject to foreign currency exchange rate risk associated with the translation of local currencies of our foreign subsidiaries into U.S. dollars. We manage the balance sheets of our foreign subsidiaries, where practical, such that foreign liabilities are matched with equal foreign assets, maintaining a “balanced book” which minimizes the effects of currency fluctuations. However, our consolidated financial position is exposed to foreign currency exchange risk related to intra-entity loans between our U.S. based subsidiaries and our non-U.S. based subsidiaries that are

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denominated in the respective local foreign currency. A transaction that is in a foreign currency is first remeasured at the entity’s functional (local) currency, where applicable, (which is an adjustment to consolidated earnings) and then translated to the reporting (U.S. dollar) currency (which is an adjustment to consolidated stockholders’ equity) for consolidated reporting purposes. If the transaction is already denominated in the foreign entity’s functional currency, only the translation to U.S. dollar reporting is necessary. The remeasurement process required by U.S. GAAP for such foreign currency loan transactions will give rise to a consolidated unrealized foreign exchange gain or loss, which could be material, that is recorded in accumulated other comprehensive earnings (loss).

Historically, we have not entered into derivatives or other similar financial instruments for trading or speculative purposes. However, with respect to managing foreign currency exchange rate risk in India, Norway and the U.K., we have periodically purchased financial instruments when market opportunities arose to minimize our exposure to this risk. During the six-month periods ended June 30, 2015 and 2014, we had several monthly put/call options in place with an external financial institution that are designed to hedge a significant portion of our future U.K. currency revenues (in 2015) and disbursements (in 2014) through various future payment dates. In addition, during the six-month period ended June 30, 2015, we had several monthly put/call options in place with an external financial institution that were designed to hedge a significant portion of our Indian currency disbursements through various future payment dates. Although these hedging strategies were designed to protect us against significant U.K. and India currency exchange rate movements, we are still exposed to some foreign currency exchange rate risk for the portion of the payments and currency exchange rate that are unhedged. All of these hedges are accounted for in accordance with ASC 815, “Derivatives and Hedging”, and periodically are tested for effectiveness in accordance with such guidance. In the scenario where such hedge does not pass the effectiveness test, the hedge will be re-measured at the stated point and the appropriate loss, if applicable, would be recognized. In the six-month period ended June 30, 2015 there has been no such effect on our financial presentation. The impact of these hedging strategies was not material to our unaudited consolidated financial statements for the six-month periods ended June 30, 2015 and 2014. See Note 14 to our unaudited consolidated financial statements for the changes in fair value of the derivative instruments reflected in comprehensive earnings at June 30, 2015.

Item 4. Controls and Procedures

As of June 30, 2015, our management, including our chief executive officer and chief financial officer, have conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act, as amended). Based on that evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective as of June 30, 2015.

There has been no change in our internal control over financial reporting during the six-month period ended June 30, 2015, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Part II - Other Information

Item 1. Legal Proceedings

Please see the information set forth in Note 13 to our consolidated financial statements, included herein, under “Litigation, Regulatory and Taxation Matters.”

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c) Issuer Purchases of Equity Securities

The following table shows the purchases of our common stock made by or on behalf of us or any “affiliated purchaser” (as such term is defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934, as amended) of Gallagher for each fiscal month in the three-month period ended June 30, 2015:

					Total Number of		Maximum Number
	Total				Shares Purchased		of Shares that May
	Number of		Average		as Part of Publicly		Yet be Purchased
	Shares		Price Paid		Announced Plans		Under the Plans
Period	Purchased (1)		per Share (2)		or Programs (3)		or Programs (3)
April 1 through April 30, 2015		—	$	—		—		10,000,000
May 1 through May 31, 2015		18,934		47.24		—		10,000,000
June 1 through June 30, 2015		17,383		49.30		—		10,000,000
Total		36,317	$	48.25		—

(1) Amounts in this column represent shares of our common stock purchased by the trustees of rabbi trusts established under our Deferred Equity Participation Plan (which we refer to as the Age 62 Plan), our Deferred Cash Participation Plan (which we refer to as the DCPP) and our Supplemental Savings and Thrift Plan (which we refer to as the Supplemental Plan), respectively. The Age 62 Plan is an unfunded, non-qualified deferred compensation plan that generally provides for distributions to certain of our key executives when they reach age 62 or upon or after their actual retirement. See Note 9 to the unaudited consolidated financial statements in this report for more information regarding the Age 62 Plan. The DCPP is an unfunded, non-qualified deferred compensation plan for certain key employees, other than executive officers, that generally provides for vesting and/or distributions no sooner than five years from the date of awards. Under the terms of the Age 62 Plan and the DCPP, we may contribute cash to the rabbi trust and instruct the trustee to acquire a specified number of shares of our common stock on the open market or in privately negotiated transactions. In the second quarter of 2015, we instructed the rabbi trustee for the Age 62 Plan and the DCPP to reinvest dividends paid into the plans in our common stock and to purchase our common stock using the cash that was funded into these plans related to the 2015 awards. The Supplemental Plan is an unfunded, non-qualified deferred compensation plan that allows certain highly compensated employees to defer amounts, including company match amounts, on a before-tax or after-tax basis. Under the terms of the Supplemental Plan, all cash deferrals and company match amounts may be deemed invested, at the employee’s election, in a number of investment options that include various mutual funds, an annuity product and a fund representing our common stock. When an employee elects to deem his or her amounts under the Supplemental Plan invested in the fund representing our common stock, the trustee of the rabbi trust purchases the number of shares of our common stock equivalent to the amount deemed invested in the fund representing our common stock. We established the rabbi trusts for the Age 62 Plan, the DCPP and the Supplemental Plan to assist us in discharging our deferred compensation obligations under these plans. All assets of the rabbi trusts, including any shares of our common stock purchased by the trustees, remain, at all times, assets of the Company, subject to the claims of our creditors. The terms of the Age 62 Plan, the DCPP and the Supplemental Plan do not provide for a specified limit on the number of shares of common stock that may be purchased by the respective trustees of the rabbi trusts.

(2) The average price paid per share is calculated on a settlement basis and does not include commissions.

(3) We have a common stock repurchase plan that the board of directors adopted on May 10, 1988 and has periodically amended since that date to authorize additional shares for repurchase (the last amendment was on January 24, 2008). We did not repurchase any shares of our common stock under the repurchase plan during the second quarter of 2015. The repurchase plan has no expiration date and we are under no commitment or obligation to repurchase any particular amount of our common stock under the plan. At our discretion, we may suspend the repurchase plan at any time.

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Item 6. Exhibits

Filed with this Form 10-Q

*10.44	Arthur J. Gallagher & Co. Senior Management Incentive Plan.
15.1	Letter of acknowledgement from Ernst & Young LLP concerning unaudited interim financial information.
31.1	Rule 13a-14(a) Certification of Chief Executive Officer.
31.2	Rule 13a-14(a) Certification of Chief Financial Officer.
32.1	Section 1350 Certification of Chief Executive Officer.
32.2	Section 1350 Certification of Chief Financial Officer.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
*   Such exhibit is a management contract or compensatory plan or arrangement required to be filed as an exhibit to this form pursuant to Item 601 of Regulation S-K.

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Signature

Pursuant to the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Arthur J. Gallagher & Co.
Date: July 31, 2015	By: /s/ Douglas K. Howell
	Douglas K. Howell Vice President and Chief Financial Officer (principal financial officer and duly authorized officer)

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Arthur J. Gallagher & Co.

Quarterly Report on Form 10-Q

For The Quarterly Period Ended June 30, 2015

Exhibit Index

*10.44	Arthur J. Gallagher & Co. Senior Management Incentive Plan.
15.1	Letter of acknowledgement from Ernst & Young LLP concerning unaudited interim financial information.
31.1	Rule 13a-14(a) Certification of Chief Executive Officer.
31.2	Rule 13a-14(a) Certification of Chief Financial Officer.
32.1	Section 1350 Certification of Chief Executive Officer.
32.2	Section 1350 Certification of Chief Financial Officer.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
*  Such exhibit is a management contract or compensatory plan or arrangement required to be filed as an exhibit to this form pursuant to Item 601 of Regulation S-K.

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EX-10.44

Exhibit 10.44

ARTHUR J. GALLAGHER & CO.

SENIOR MANAGEMENT INCENTIVE PLAN

I. PURPOSES

The purposes of the Arthur J. Gallagher & Co. Senior Management Incentive Plan (the “Plan”) are to retain and motivate the officers of Arthur J. Gallagher & Co. (the “Company”) and its subsidiaries who have been designated by the Compensation Committee (the “Committee”) to participate in the Plan for a specified Performance Period by providing them with the opportunity to earn incentive payments based upon the extent to which specified performance goals have been achieved or exceeded for an applicable Performance Period. It is intended that all amounts payable under the Plan to Participants who are “covered employees” within the meaning of Section 162(m) of the Code will constitute “qualified performance-based compensation” within the meaning of U.S. Treasury regulations promulgated thereunder, and the Plan and the terms of any awards hereunder shall be so interpreted and construed to the maximum extent possible.

II. CERTAIN DEFINITIONS

“Board” shall mean the Board of Directors of the Company.

“Code” shall mean the Internal Revenue Code of 1986, as amended.

“Committee” shall mean the Compensation Committee of the Board or such other committee designated by the Board that satisfies any then applicable requirements of the New York Stock Exchange, or such other principal national stock exchange on which the common stock of the Company is then traded, to constitute a compensation committee, and which consists of two or more members of the Board, each of whom shall be an “outside director” within the meaning of Section 162(m) of the Code.

“Company” shall mean Arthur J. Gallagher & Co., a Delaware corporation, and any successor thereto.

“Determination Period” shall mean, with respect to any Performance Period, a period commencing on or before the first day of the Performance Period and ending not later than the earlier of (i) 90 days after the commencement of the Performance Period and (ii) the date on which twenty-five percent (25%) of the Performance Period has been completed. Any action required to be taken within a Determination Period may be taken at a later date if permissible under Section 162(m) of the Code or regulations promulgated thereunder, as they may be amended from time to time.

“Individual Award Opportunity” shall mean the potential of a Participant to receive an incentive payment based on the extent to which the applicable performance goals for a Performance Period shall have been satisfied. An Individual Award Opportunity may be expressed in U.S. dollars or pursuant to a formula that is consistent with the provisions of the Plan.

“Participant” shall mean an officer of the Company or any of its subsidiaries who is designated by the Company to participate in the Plan for a Performance Period, in accordance with Article III.

“Performance Period” shall mean any period commencing on or after January 1, 2015 for which performance goals are established pursuant to Article IV. A Performance Period may be coincident with one or more fiscal years of the Company or a portion of any fiscal year of the Company.

“Plan” shall mean the Arthur J. Gallagher & Co. Senior Management Incentive Plan, as set forth herein, as it may be amended from time to time.

III. ADMINISTRATION

3.1 General. The Plan shall be administered by the Committee, which shall have the full power and authority to interpret, construe and administer the Plan and any Individual Award Opportunity granted hereunder (including reconciling any inconsistencies, correcting any defaults and addressing any omissions). The Committee’s interpretation, construction and administration of the Plan and all its determinations hereunder shall be final, conclusive and binding on all persons for all purposes.

3.2 Powers and Responsibilities. The Committee shall have the following discretionary powers, rights and responsibilities in addition to those described in Section 3.1:

(a) to designate within the Determination Period the Participants for a Performance Period;

(b) to establish within the Determination Period the performance goals and other terms and conditions that are to apply to each Participant’s Individual Award Opportunity, including the extent to which any incentive payment shall be made to a Participant in the event of (A) the Participant’s termination of employment with the Company due to disability, retirement, death or any other reason or (B) a change in control of the Company;

(c) to determine in writing prior to the payment under any Incentive Award Opportunity that the performance goals for a Performance Period and other material terms applicable to the Incentive Award Opportunity have been satisfied;

(d) subject to the requirements of Section 409A of the Code, to decide whether, and under what circumstances and subject to what terms, Incentive Award Opportunities are to be paid on a deferred basis, including whether such a deferred payment shall be made solely at the Committee’s discretion or whether a Participant may elect deferred payment; and

(e) to adopt, revise, suspend, waive or repeal, when and as appropriate, in its sole and absolute discretion, such administrative rules, guidelines and procedures for the Plan as it deems necessary or advisable to implement the terms and conditions of the Plan.

3.3 Delegation of Power. The Committee may delegate some or all of its power and authority hereunder to the President and Chief Executive Officer or other executive officer of the Company as the Committee deems appropriate; provided, however, that with respect to any person who is a “covered employee” within the meaning of Section 162(m) of the Code or who, in the Committee’s judgment, is likely to be a covered employee at any time during the applicable Performance Period, only the Committee shall be permitted to (i) designate such person to participate in the Plan for such Performance Period, (ii) establish performance goals and Individual Award Opportunities for such person, and (iii) certify the achievement of such performance goals.

IV. PERFORMANCE GOALS

4.1 Establishing Performance Goals. The Committee shall establish within the Determination Period of each Performance Period one or more objective performance goals for each Participant or for any group of Participants (or both), provided that the outcome of each goal is substantially uncertain at the time the Committee establishes such goal. Performance goals shall be based exclusively on one or more of the following objective corporate-wide or subsidiary, division, operating unit or individual measures, stated in either absolute terms or relative terms, such as rates of growth or improvement: (i) the attainment of a specified fair market value for shares of our common stock for a specified period of time, (ii) earnings per share, (iii) return to stockholders, (iv) return on assets, (v) return on equity, (vi) revenue, (vii) cash flow, (viii) operating expense reduction, (ix) return on investment, (x) return on capital, (xi) operating margin, (xii) net income, (xiii) earnings before interest, taxes, depreciation, amortization and/or change in estimated earnout payables or net earnings (either before or after interest, taxes, depreciation, amortization and/or change in estimated earnout payables), (xiv) operating earnings, (xv) net cash provided by operations, and (xvi) strategic business criteria, consisting of one or more objectives such as (A) geographic business expansion goals, (B) cost targets, (C) customer satisfaction ratings, (D) reductions in errors and omissions, (E) reductions in lost business, (F) management of employment practices and employee benefits, (G) supervision of litigation, (H) satisfactory audit scores, (I) productivity, (J) efficiency, and (K) goals relating to acquisitions or divestitures, or any combination of the foregoing. With respect to Participants who are not “covered employees” within the meaning of Section 162(m) of the Code and who, in the Committee’s judgment, are not likely to be a covered employees at any time during the applicable Performance Period, the performance goals established for the Performance Period may consist of any objective corporate-wide or subsidiary, division, operating unit or individual measures, whether or not listed herein. Performance goals shall be subject to such other special rules and conditions as the Committee may establish at any time within the Determination Period.

2

4.2 Impact of Extraordinary Items or Changes in Accounting. The measures utilized in establishing performance goals under the Plan for any given Performance Period shall be determined in accordance with generally accepted accounting principles (“GAAP”) and in a manner consistent with the methods used in the Company’s audited consolidated financial statements. In the sole discretion of the Committee, but subject to Section 162(m) of the Code, the Committee may provide that one or more objectively determinable adjustments shall be made to one or more of the performance goals. Such adjustments may include one or more of the following: (i) items related to a change in accounting principles or applicable law; (ii) items relating to financing activities; (iii) expenses for restructuring or productivity initiatives; (iv) other non-operating items; (v) items related to acquisitions; (vi) items attributable to the business operations of any entity acquired by the Company during the Performance Period; (vii) items related to the disposal of a business or segment of a business; (viii) items related to discontinued operations that do not qualify as a segment of a business under GAAP; (ix) items attributable to any stock dividend, stock split, combination or exchange of shares occurring during the Performance Period; (x) any other items of significant income or expense which are determined to be appropriate adjustments; (xi) items relating to unusual or extraordinary corporate transactions, events or developments, (xii) items related to amortization of acquired intangible assets; (xiii) items that are outside the scope of the Company’s core, on-going business activities; or (xiv) items relating to any other unusual or nonrecurring events or changes in applicable laws, accounting principles or business conditions. Such determinations shall be made within the Determination Period or as otherwise required under Section 162(m) of the Code.

V. INCENTIVE AWARD OPPORTUNITIES

5.1 Terms. At the time performance goals are established for a Performance Period, the Committee also shall establish an Individual Award Opportunity for each Participant or group of Participants, which shall be based on the achievement of one or more specified targets of performance goals. The targets shall be expressed in terms of an objective formula or standard which may, at the discretion of the Committee, be based upon the Participant’s annual base salary or a multiple thereof. In all cases the Committee shall have the sole and absolute discretion to reduce the amount of any payment under any Incentive Award Opportunity that would otherwise be made to any Participant or to decide that no payment shall be made. No Participant shall receive a payment under the Plan with respect to the awards based on performance for a fiscal year of the Company (regardless of the year in which actually paid) in excess of $6,000,000, which maximum amount shall be proportionately adjusted with respect to awards based on Performance Periods that are more or less than a single entire fiscal year in duration.

5.2 Incentive Payments. Payments under Incentive Award Opportunities shall be in cash or shares under a stock incentive plan maintained by the Company, as determined by the Committee, and shall be made at the time determined by the Committee after the end of the Performance Period for which the Incentive Awards are payable, except that no such payment shall be made unless and until the Committee, based to the extent applicable on the Company’s audited consolidated financial statements for such Performance Period (as prepared and reviewed by the Company’s independent public accountants), has certified in writing the extent to which the applicable performance goals for such Performance Period have been satisfied.

VI. RESTRICTIVE COVENANTS

6.1 Restrictive Covenants; Clawback. If, at any time within two years after the payment of an Individual Award Opportunity, the Participant, in the sole determination of the management of the Company, engages in any activity in competition with any activity of the Company, or inimical, contrary or harmful to the interests of the Company, including, but not limited to: (i) conduct related to his or her employment for which either criminal or civil penalties against him may be sought, (ii) violation of Company policies, including, without limitation, the Company’s Global Standards of Business Conduct and Insider Trading Policy, (iii) directly or indirectly, soliciting, placing, accepting, aiding, counseling or consulting in the renewal, discontinuance or replacement of any insurance or reinsurance by, or handling self-insurance programs, insurance claims or other insurance administrative functions (“insurance services”) for, any existing Company account or any actively solicited prospective account of the Company for which the Participant performed any of the foregoing functions during the two-year period immediately preceding his or her termination or providing any employee benefit brokerage, consulting, or administration services, in the areas of group insurance, defined benefit and defined contribution pension plans, individual life, disability and capital accumulation products, investment advisory services and all other employee benefit areas (“benefit services”) the Company is involved with, for any existing Company account or any actively solicited prospective

3

account of the Company for which the Participant performed any of the foregoing functions during the two-year period immediately preceding such termination or, if the Participant has not terminated employment, the date of the prohibited activity (the term Company account as used in this Section 6.1 shall be construed broadly to include all users of insurance services or benefit services including commercial and individual consumers, risk managers, carriers, agents and other insurance intermediaries), (iv) the rendering of services for any organization which is competitive with the Company, (v) employing or recruiting any current or former employee of the Company, (vi) disclosing or misusing any confidential information or material concerning the Company, or (vii) participating in a hostile takeover attempt of the Company, then such Individual Award Opportunity shall be forfeited effective as of the date on which the Participant enters into such activity, unless terminated sooner by operation of another term or condition of the Plan, and such Individual Award Opportunities shall be repaid by the Participant to the Company. For residents of the United Kingdom, if the conduct described above occurs during “garden leave,” 85% of awards paid in the 12-month period, and 60% of awards paid in the 24 months to 12 months, prior to the commencement of garden leave, shall be forfeited and repaid; and if such conduct occurs following termination of employment, then 75% of awards paid in the 12-month period, and 50% of awards paid in the 24 months to 12 months, prior to termination, shall be forfeited and repaid. Such repayment shall include interest measured from the first date the Participant engaged in any of the prohibited activities set forth above at the highest rate allowable under applicable law.

6.2 Injunctive Relief. By participating in the Plan, each Participant acknowledges that the Participant’s engaging in activities and behavior in violation of Section 6.1 will result in a loss to the Company which cannot reasonably or adequately be compensated in damages in an action at law, that a breach of Section 6.1 will result in irreparable and continuing harm to the Company and that therefore, in addition to and cumulative with any other remedy which the Company may have at law or in equity, the Company shall be entitled to injunctive relief for a breach of Section 6.1 by the Participant. By participating in the Plan each Participant acknowledges and agrees that the requirement in Section 6.1 that the Participant disgorge and pay over to the Company the payments of Individual Award Opportunities received by such Participant is not a provision for liquidated damages. The Participant agrees to pay any and all costs and expenses, including reasonable attorneys’ fees, incurred by the Company in enforcing any breach of any covenant in the Plan.

6.3 Consent to Deduction; Set-Off. To the extent permitted by Section 409A of the Code, by participating in the Plan, each Participant consents to deductions from any amounts the Company owes the Participant from time to time (including amounts owed as wages or other compensation, fringe benefits or vacation pay, as well as any other amounts owed to the Participant by the Company) to the extent of the amounts the Participant owes the Company under Section 6.1. Whether or not the Company elects to make any set-off in whole or in part, if the Company does not recover by means of setoff the full amount owed, calculated as set forth above, the Participant agrees to pay immediately the unpaid balance to the Company.

6.4 Compliance with Local Laws. The Committee shall have the right to provide for terms different from those set forth in this Article VI for certain Participants to the extent necessary or advisable, in the Committee’s discretion, for purposes of any local (including state and foreign) laws applicable to such Participants.

VII. GENERAL

7.1 Effective Date and Term of Plan. The Plan shall be submitted to the stockholders of the Company for approval at the 2015 annual meeting of stockholders and, if approved by the affirmative vote of a majority of the shares of common stock of the Company present in person or represented by proxy at such meeting, shall become effective for Performance Periods beginning on and after January 1, 2015. This Plan shall terminate as of December 31, 2019, unless terminated earlier by the Board. In the event that this Plan is not approved by the stockholders of the Company, this Plan shall be null and void.

7.2 Amendment or Termination of Plan. The Board may amend or terminate this Plan as it shall deem advisable, subject to any requirement of stockholder approval required by applicable law, rule or regulation, including Section 162(m) of the Code.

4

7.3 Non-Transferability of Awards. No award under the Plan shall be transferable other than by will, the laws of descent and distribution or pursuant to beneficiary designation procedures approved by the Company. Except to the extent permitted by the foregoing sentence, no award may be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process. Upon any attempt to sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of any such award, such award and all rights thereunder shall immediately become null and void.

7.4 Tax Withholding. The Company shall have the right to require, prior to the payment of any amount pursuant to an award made hereunder, payment by the Participant of any Federal, state, local or other taxes which may be required to be withheld or paid in connection with such award.

7.5 No Right of Participation or Employment. No person shall have any right to participate in this Plan. Neither this Plan nor any award made hereunder shall confer upon any person any right to continued employment by the Company, any subsidiary or any affiliate of the Company or affect in any manner the right of the Company, any subsidiary or any affiliate of the Company to terminate the employment of any person at any time without liability hereunder.

7.6 Designation of Beneficiary. If permitted by the Company, a Participant may file with the Committee a written designation of one or more persons as such Participant’s beneficiary or beneficiaries (both primary and contingent) in the event of the Participant’s death. Each beneficiary designation shall become effective only when filed in writing with the Committee during the Participant’s lifetime on a form prescribed by the Committee. The spouse of a married Participant domiciled in a community property jurisdiction shall join in any designation of a beneficiary other than such spouse. The filing with the Committee of a new beneficiary designation shall cancel all previously filed beneficiary designations. If a Participant fails to designate a beneficiary, or if all designated beneficiaries of a Participant predecease the Participant, then each outstanding award shall be payable to the Participant’s executor, administrator, legal representative or similar person.

7.7 Recovery Policy. Notwithstanding any other provisions in the Plan, any Individual Award Opportunity which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any recoupment policy adopted by the Company, including a policy adopted by the Company in response to any such law, government regulation or stock exchange listing requirement).

7.8 Governing Law. This Plan and each award hereunder, and all determinations made and actions taken pursuant thereto, to the extent not otherwise governed by the Code or the laws of the United States, shall be governed by the laws of the State of Illinois and construed in accordance therewith without giving effect to principles of conflicts of laws.

7.9 Other Plans. Neither the adoption of the Plan nor the submission of the Plan to the Company’s stockholders for their approval shall be construed as limiting the power of the Board or the Committee to adopt such other incentive arrangements as it may otherwise deem appropriate.

7.10 Binding Effect. The Plan shall be binding upon the Company and its successors and assigns and the Participants and their beneficiaries, personal representatives and heirs. If the Company becomes a party to any merger, consolidation or reorganization, then the Plan shall remain in full force and effect as an obligation of the Company or its successors in interest, unless the Plan is amended or terminated pursuant to Section 7.2.

5

EX-15.1

Exhibit 15.1

Board of Directors and Stockholders

Arthur J. Gallagher & Co.

We are aware of the incorporation by reference in the Registration Statements (Form S-8, No. 333-87320 and Form S-8, No. 333-106535) pertaining to the Arthur J. Gallagher & Co. 1988 Nonqualified and Non-Employee Directors’ Stock Option Plans, in the Registration Statement (Form S-8, No. 333-106539) pertaining to the Arthur J. Gallagher & Co. Restricted Stock Plan, in the Registration Statement (Form S-8, No. 333-174497) pertaining to the Arthur J. Gallagher & Co. 2011 Long-Term Incentive Plan, in the Registration Statement (Form S-8, No. 333-197898) pertaining to the Arthur J. Gallagher & Co. 2014 Long-Term Incentive Plan, Deferred Equity Participation Plan, Deferred Cash Participation Plan, and Supplemental Savings and Thrift Plan, in the Registration Statement (Form S-8, No. 333-204976) pertaining to the Arthur J. Gallagher & Co. Employee Stock Purchase Plan, and in the Registration Statements (Form S-3, No. 333-192437 and Form S-4, No. 333-203203), and in the related Prospectuses, of our report dated July 31, 2015 relating to the unaudited consolidated interim financial statements of Arthur J. Gallagher & Co. that is included in its Form 10-Q for the quarter ended June 30, 2015.

  /s/ Ernst & Young LLP

Ernst & Young LLP

Chicago, Illinois

July 31, 2015

EX-31.1

Exhibit 31.1

Rule 13a-14(a) Certification of Chief Executive Officer

I, J. Patrick Gallagher, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Arthur J. Gallagher & Co.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 31, 2015

  /s/ J. Patrick Gallagher, Jr.

J. Patrick Gallagher, Jr.
President and Chief Executive Officer
(principal executive officer)

EX-31.2

Exhibit 31.2

Rule 13a-14(a) Certification of Chief Financial Officer

I, Douglas K. Howell, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Arthur J. Gallagher & Co.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 31, 2015

/s/ Douglas K. Howell

Douglas K. Howell
Vice President
Chief Financial Officer
(principal financial officer)

EX-32.1

Exhibit 32.1

Section 1350 Certification of Chief Executive Officer

I, J. Patrick Gallagher, Jr., the chief executive officer of Arthur J. Gallagher & Co., certify that (i) the Quarterly Report on Form 10-Q of Arthur J. Gallagher & Co. for the quarterly period ended June 30, 2015 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Arthur J. Gallagher & Co. and its subsidiaries.

Date: July 31, 2015

/s/ J. Patrick Gallagher, Jr.

J. Patrick Gallagher, Jr.
President and Chief Executive Officer
(principal executive officer)

A signed original of this written statement required by 18 U.S.C. Section 1350 has been provided to Arthur J. Gallagher & Co. and will be retained by Arthur J. Gallagher & Co. and furnished to the Securities Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Section 1350 Certification of Chief Financial Officer

I, Douglas K. Howell, the chief financial officer of Arthur J. Gallagher & Co., certify that (i) the Quarterly Report on Form 10-Q of Arthur J. Gallagher & Co. for the quarterly period ended June 30, 2015 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Arthur J. Gallagher & Co. and its subsidiaries.

Date: July 31, 2015

/s/ Douglas K. Howell

Douglas K. Howell
Vice President
Chief Financial Officer
(principal financial officer)

A signed original of this written statement required by 18 U.S.C. Section 1350 has been provided to Arthur J. Gallagher & Co. and will be retained by Arthur J. Gallagher & Co. and furnished to the Securities Exchange Commission or its staff upon request.

XML

Business Combinations - Acquisition Method for Recording Business Combinations (Detail) - Jun. 30, 2015 - USD ($) shares in Thousands, $ in Millions	Total
Business Acquisition [Line Items]
Common Shares Issued	4,418
Common Share Value	$ 197.7
Cash Paid	45.4
Accrued Liability	7.1
Escrow Deposited	16.2
Recorded Earnout Payable	40.9
Total Recorded Purchase Price	307.3
Maximum Potential Earnout Payable	$ 149.3
e3 Financial, Inc. (EFI) [Member]
Business Acquisition [Line Items]
Common Shares Issued	2
Common Share Value	$ 0.0
Cash Paid	9.1
Accrued Liability	0.0
Escrow Deposited	0.1
Recorded Earnout Payable	0.7
Total Recorded Purchase Price	9.9
Maximum Potential Earnout Payable	$ 7.0
Aequus Trade Credit LLC [Member]
Business Acquisition [Line Items]
Common Shares Issued	11
Common Share Value	$ 0.3
Cash Paid	1.5
Accrued Liability	0.0
Escrow Deposited	0.2
Recorded Earnout Payable	1.3
Total Recorded Purchase Price	3.3
Maximum Potential Earnout Payable	$ 1.9
Cohen & Lord Insurance Brokers Limited [Member]
Business Acquisition [Line Items]
Common Shares Issued	77
Common Share Value	$ 3.6
Cash Paid	2.1
Accrued Liability	0.0
Escrow Deposited	0.0
Recorded Earnout Payable	0.0
Total Recorded Purchase Price	5.7
Maximum Potential Earnout Payable	$ 0.0
Cohn Financial Group, LLC (CFG) [Member]
Business Acquisition [Line Items]
Common Shares Issued	407
Common Share Value	$ 19.0
Cash Paid	0.0
Accrued Liability	0.0
Escrow Deposited	0.3
Recorded Earnout Payable	4.2
Total Recorded Purchase Price	23.5
Maximum Potential Earnout Payable	$ 14.0
Excel Insurance Services, Inc. [Member]
Business Acquisition [Line Items]
Common Shares Issued	52
Common Share Value	$ 1.5
Cash Paid	7.3
Accrued Liability	0.0
Escrow Deposited	1.0
Recorded Earnout Payable	0.0
Total Recorded Purchase Price	9.8
Maximum Potential Earnout Payable	$ 0.0
Metcom Excess [Member]
Business Acquisition [Line Items]
Common Shares Issued	49
Common Share Value	$ 1.8
Cash Paid	2.3
Accrued Liability	0.0
Escrow Deposited	0.5
Recorded Earnout Payable	0.0
Total Recorded Purchase Price	4.6
Maximum Potential Earnout Payable	$ 0.0
NationAir Aviation Insurance (NAI) [Member]
Business Acquisition [Line Items]
Common Shares Issued	288
Common Share Value	$ 12.3
Cash Paid	0.0
Accrued Liability	0.0
Escrow Deposited	1.3
Recorded Earnout Payable	0.0
Total Recorded Purchase Price	13.6
Maximum Potential Earnout Payable	$ 0.0
Evolution Group of Companies [Member]
Business Acquisition [Line Items]
Common Shares Issued	101
Common Share Value	$ 4.7
Cash Paid	0.9
Accrued Liability	0.5
Escrow Deposited	0.4
Recorded Earnout Payable	2.9
Total Recorded Purchase Price	9.4
Maximum Potential Earnout Payable	$ 3.1
Burns-Fazzi, Brock & Associates, LLC (BFB) [Member]
Business Acquisition [Line Items]
Common Shares Issued	709
Common Share Value	$ 33.4
Cash Paid	0.0
Accrued Liability	0.0
Escrow Deposited	1.0
Recorded Earnout Payable	7.4
Total Recorded Purchase Price	41.8
Maximum Potential Earnout Payable	$ 27.0
Madison Risk & Insurance Services, Inc. (MRI) [Member]
Business Acquisition [Line Items]
Common Shares Issued	232
Common Share Value	$ 10.3
Cash Paid	3.7
Accrued Liability	0.0
Escrow Deposited	1.0
Recorded Earnout Payable	1.4
Total Recorded Purchase Price	16.4
Maximum Potential Earnout Payable	$ 4.0
Integrated Healthcare Strategies, LLC (IHS) [Member]
Business Acquisition [Line Items]
Common Shares Issued	990
Common Share Value	$ 41.4
Cash Paid	0.5
Accrued Liability	3.1
Escrow Deposited	6.2
Recorded Earnout Payable	4.5
Total Recorded Purchase Price	55.7
Maximum Potential Earnout Payable	$ 20.8
James R. Weir Insurance Agency, Inc. [Member]
Business Acquisition [Line Items]
Common Shares Issued	56
Common Share Value	$ 2.5
Cash Paid	0.0
Accrued Liability	0.0
Escrow Deposited	0.3
Recorded Earnout Payable	0.8
Total Recorded Purchase Price	3.6
Maximum Potential Earnout Payable	$ 1.1
McDowall Associates Human Resources Consultants Ltd. [Member]
Business Acquisition [Line Items]
Common Shares Issued	34
Common Share Value	$ 1.5
Cash Paid	0.6
Accrued Liability	0.6
Escrow Deposited	0.1
Recorded Earnout Payable	0.5
Total Recorded Purchase Price	3.3
Maximum Potential Earnout Payable	$ 2.5
Vital Benefits, Inc. [Member]
Business Acquisition [Line Items]
Common Shares Issued	118
Common Share Value	$ 5.6
Cash Paid	0.0
Accrued Liability	0.0
Escrow Deposited	0.1
Recorded Earnout Payable	0.0
Total Recorded Purchase Price	5.7
Maximum Potential Earnout Payable	$ 0.0
Monument, LLC (ML) [Member]
Business Acquisition [Line Items]
Common Shares Issued	254
Common Share Value	$ 10.8
Cash Paid	4.0
Accrued Liability	0.0
Escrow Deposited	1.7
Recorded Earnout Payable	2.4
Total Recorded Purchase Price	18.9
Maximum Potential Earnout Payable	$ 5.0
Solid Benefit Guidance Limited Liability Company (SBG) [Member]
Business Acquisition [Line Items]
Common Shares Issued	932
Common Share Value	$ 44.0
Cash Paid	0.3
Accrued Liability	2.5
Escrow Deposited	1.0
Recorded Earnout Payable	11.6
Total Recorded Purchase Price	59.4
Maximum Potential Earnout Payable	$ 32.5
Eight Other Acquisitions [Member]
Business Acquisition [Line Items]
Common Shares Issued	106
Common Share Value	$ 5.0
Cash Paid	13.1
Accrued Liability	0.4
Escrow Deposited	1.0
Recorded Earnout Payable	3.2
Total Recorded Purchase Price	22.7
Maximum Potential Earnout Payable	$ 30.4

XML

Earnings Per Share - Computation of Basic and Diluted Net EPS (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Net earnings attributable to controlling interests	$ 139.3	$ 109.0	$ 161.2	$ 158.3
Weighted average number of common shares outstanding	170.6	154.3	168.1	144.2
Dilutive effect of stock options using the treasury stock method	1.1	1.4	1.2	1.6
Weighted average number of common and common equivalent shares outstanding	171.7	155.7	169.3	145.8
Basic net earnings per share	$ 0.82	$ 0.71	$ 0.96	$ 1.10
Diluted net earnings per share	$ 0.81	$ 0.70	$ 0.95	$ 1.09

XML

Intangible Assets - Major Classes of Amortizable Intangible Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, net	$ 1,761.5	$ 1,776.0
Expiration Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, gross	2,560.1	2,461.9
Accumulated amortization	(823.3)	(719.3)
Amortizable intangible assets, net	1,736.8	1,742.6
Non-Compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, gross	42.7	43.2
Accumulated amortization	(32.5)	(29.5)
Amortizable intangible assets, net	10.2	13.7
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, gross	27.2	29.7
Accumulated amortization	(12.7)	(10.0)
Amortizable intangible assets, net	$ 14.5	$ 19.7

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Commitments, Contingencies and Off-Balance Sheet Arrangements - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended		162 Months Ended
	Jun. 30, 2015 USD ($) Entity	Jun. 30, 2014 Entity	Jun. 30, 2015 USD ($) ft² Entity LetterOfCredit Employees Companies	Jun. 30, 2014 Entity	Jun. 30, 2015 USD ($) Entity
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Acquired property through lease area, sqft | ft²			306,000
Acquired property through lease percentage of building			60.00%
Operating lease commitment, expiration date			Feb. 28, 2018
Number of companies acquired | Entity	24	18	43	35	363
Aggregate amount of maximum earnout obligations related to acquisitions			$ 596.6
Aggregate amount of maximum earnout obligations related to acquisitions, recorded in consolidated balance sheet			217.4
Income tax credits and adjustments			117.0
Tax-Advantaged Investments No Longer Held [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Total indemnifications	$ 32.0		32.0		$ 32.0
Letter of Credit [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Debt	5.0		$ 5.0		5.0
Number of letters of credit issued | LetterOfCredit			1
Self-Insurance Deductibles [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Number of letters of credit issued | LetterOfCredit			2
Self-Insurance Deductibles [Member] | Letter of Credit [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Liabilities recorded on self-insurance	11.3		$ 11.3		11.3
Debt	11.2		$ 11.2		11.2
Rent-A-Captive Facility [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Number of letters of credit issued | LetterOfCredit			7
Rent-A-Captive Facility [Member] | Letter of Credit [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Debt	6.3		$ 6.3		6.3
Errors and Omissions [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Insurance claims, amount retained			5.0
Amount of losses in excess of retained amounts	$ 175.0		$ 175.0		$ 175.0
Minimum [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Ownership interest	1.00%		1.00%		1.00%
Number of micro-captive insurance companies organized or managed | Companies			100
Minimum [Member] | Errors and Omissions [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Actuarial range value	$ 1.7		$ 1.7		$ 1.7
Maximum [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Ownership interest	50.00%		50.00%		50.00%
Maximum [Member] | Errors and Omissions [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Actuarial range value	$ 6.1		$ 6.1		$ 6.1
United Kingdom [Member] | Brokerage [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Number of senior employees resigned | Employees			5

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Earnings Per Share - Additional information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Options to purchase common stock shares outstanding	3.9	1.9	3.1	1.2

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Intangible Assets - Carrying Amount of Goodwill Allocated by Domestic and Foreign Operations (Detail) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Goodwill [Line Items]
Total goodwill - net	$ 3,569.4	$ 3,449.6
Unites States [Member]
Goodwill [Line Items]
Total goodwill - net	1,807.3	1,672.8
United Kingdom [Member]
Goodwill [Line Items]
Total goodwill - net	828.8	820.6
Canada [Member]
Goodwill [Line Items]
Total goodwill - net	316.3	318.5
Australia [Member]
Goodwill [Line Items]
Total goodwill - net	372.3	336.8
Other Foreign, Principally New Zealand [Member]
Goodwill [Line Items]
Total goodwill - net	244.7	300.9
Brokerage [Member]
Goodwill [Line Items]
Total goodwill - net	3,541.8	3,427.5
Brokerage [Member] | Unites States [Member]
Goodwill [Line Items]
Total goodwill - net	1,783.8	1,652.6
Brokerage [Member] | United Kingdom [Member]
Goodwill [Line Items]
Total goodwill - net	825.0	818.7
Brokerage [Member] | Canada [Member]
Goodwill [Line Items]
Total goodwill - net	316.3	318.5
Brokerage [Member] | Australia [Member]
Goodwill [Line Items]
Total goodwill - net	372.3	336.8
Brokerage [Member] | Other Foreign, Principally New Zealand [Member]
Goodwill [Line Items]
Total goodwill - net	244.4	300.9
Risk Management [Member]
Goodwill [Line Items]
Total goodwill - net	27.6	22.1
Risk Management [Member] | Unites States [Member]
Goodwill [Line Items]
Total goodwill - net	23.5	20.2
Risk Management [Member] | United Kingdom [Member]
Goodwill [Line Items]
Total goodwill - net	3.8	1.9
Risk Management [Member] | Canada [Member]
Goodwill [Line Items]
Total goodwill - net	0.0	0.0
Risk Management [Member] | Australia [Member]
Goodwill [Line Items]
Total goodwill - net	0.0	0.0
Risk Management [Member] | Other Foreign, Principally New Zealand [Member]
Goodwill [Line Items]
Total goodwill - net	0.3	0.0
Corporate [Member]
Goodwill [Line Items]
Total goodwill - net	0.0	0.0
Corporate [Member] | Unites States [Member]
Goodwill [Line Items]
Total goodwill - net	0.0	0.0
Corporate [Member] | United Kingdom [Member]
Goodwill [Line Items]
Total goodwill - net	0.0	0.0
Corporate [Member] | Canada [Member]
Goodwill [Line Items]
Total goodwill - net	0.0	0.0
Corporate [Member] | Australia [Member]
Goodwill [Line Items]
Total goodwill - net	0.0	0.0
Corporate [Member] | Other Foreign, Principally New Zealand [Member]
Goodwill [Line Items]
Total goodwill - net	$ 0.0	$ 0.0

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Investments (Tables)

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Investments Reported in Other Current and Non-Current Assets

The following is a summary of our investments and the related funding commitments (in millions):

	June 30, 2015				December 31, 2014
	Assets		Funding Commitments		Assets
Chem-Mod LLC	$	4.0	$	—	$	4.0
Chem-Mod International LLC		2.0		—		2.0
C-Quest Technologies LLC and C-Quest Technologies International LLC		—		—		—
Clean-coal investments:
Controlling interest in five limited liability companies that own fourteen 2009 Era Clean Coal Plants		15.6		—		17.3
Non-controlling interest in one limited liability company that owns one 2011 Era Clean Coal Plant		0.9		—		1.0
Controlling interest in fourteen limited liability companies that own nineteen 2011 Era Clean Coal Plants		58.3		—		54.5
Other investments		2.5		2.9		3.2
Total investments	$	83.3	$	2.9	$	82.0

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Accumulated Other Comprehensive Earnings (Loss) - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Expense related to pension liability reclassified from accumulated other comprehensive earnings (loss)	$ 3,200,000	$ 1,200,000
Expense related to fair value of derivative investments reclassified from accumulated other comprehensive earnings (loss)	100,000	300,000
Foreign currency translation reclassified from accumulated other comprehensive earnings (loss)	$ 0	$ 0

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Stock Option Plans - Black-Scholes Option Pricing Model with Weighted Average (Detail)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend yield	3.00%	3.00%
Expected risk-free interest rate	1.80%	1.80%
Volatility	28.20%	28.90%
Expected life (in years)	5 years 6 months	5 years 6 months

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Commitments, Contingencies and Off-Balance Sheet Arrangements - Off-Balance Sheet Commitments (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2015 USD ($)
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Amount of Commitment Expiration by Period - 2015	$ 0.7
Amount of Commitment Expiration by Period - 2016	0.8
Amount of Commitment Expiration by Period - 2017	0.8
Amount of Commitment Expiration by Period - 2018	0.8
Amount of Commitment Expiration by Period - 2019	2.3
Amount of Commitment Expiration by Period - Thereafter	39.6
Total Amounts Committed	$ 45.0
Letters of Credit [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Amount of Commitment Expiration by Period - 2015
Amount of Commitment Expiration by Period - 2016
Amount of Commitment Expiration by Period - 2017
Amount of Commitment Expiration by Period - 2018
Amount of Commitment Expiration by Period - 2019
Amount of Commitment Expiration by Period - Thereafter	$ 22.6
Total Amounts Committed	22.6
Financial Guarantees [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Amount of Commitment Expiration by Period - 2015	0.7
Amount of Commitment Expiration by Period - 2016	0.8
Amount of Commitment Expiration by Period - 2017	0.8
Amount of Commitment Expiration by Period - 2018	0.8
Amount of Commitment Expiration by Period - 2019	0.8
Amount of Commitment Expiration by Period - Thereafter	15.6
Total Amounts Committed	$ 19.5
Funding Commitments [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Amount of Commitment Expiration by Period - 2015
Amount of Commitment Expiration by Period - 2016
Amount of Commitment Expiration by Period - 2017
Amount of Commitment Expiration by Period - 2018
Amount of Commitment Expiration by Period - 2019	$ 1.5
Amount of Commitment Expiration by Period - Thereafter	1.4
Total Amounts Committed	$ 2.9

XML

Nature of Operations and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Effect of Immaterial Changes to Presentation of Consolidated Statement of Earnings

The effect of the immaterial changes to the presentation of our consolidated statement of earnings for the three-month and six-month periods ended June 30, 2014 is summarized below:

	Three-month period ended June 30,						Six-month period ended June 30,
	As Previously Reported			As Restated			As Previously Reported			As Restated
Operating expense	$	184.0		$	179.2		$	341.2		$	328.0
Earnings before income taxes	$	107.1		$	111.9		$	153.4		$	166.6
Provision for income taxes		(1.9	)		(1.8	)		(4.9	)		(4.9	)
Net earnings	$	109.0			113.7		$	158.3			171.5
Net earnings attributable to noncontrolling interests					4.7						13.2
Net earnings attributable to controlling interests				$	109.0					$	158.3
Basic net earnings per share	$	0.71		$	0.71		$	1.10		$	1.10
Diluted net earnings per share	$	0.70		$	0.70		$	1.09		$	1.09

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Credit and Other Debt Agreements - Summary of Corporate and Other Debt (Detail) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Semi-annual payments of interest	$ 2,371.6	$ 2,392.9
Premium Financing Debt Facility [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	91.6	127.9
Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	2,125.0	2,125.0
Fixed Rate of 6.44%, Balloon Due 2017 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	300.0	300.0
Fixed Rate of 5.85%, $50.0 Million Due in 2016, 2018 and 2019 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	150.0	150.0
Fixed Rate of 2.80%, Balloon Due 2018 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	50.0	50.0
Fixed Rate of 3.20%, Balloon Due 2019 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	50.0	50.0
Fixed Rate of 3.99%, Balloon Due 2020 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	50.0	50.0
Fixed Rate of 3.48%, Balloon Due 2020 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	50.0	50.0
Fixed Rate of 5.18%, Balloon Due 2021 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	75.0	75.0
Fixed rate of 3.69%, Balloon Due 2022 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	200.0	200.0
Fixed Rate of 5.49%, Balloon Due 2023 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	50.0	50.0
Fixed Rate of 4.13%, Balloon Due 2023 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	200.0	200.0
Fixed Rate of 4.58% Balloon Due 2024 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	325.0	325.0
Fixed Rate of 4.31%, Balloon Due 2025 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	200.0	200.0
Fixed Rate of 4.73% Balloon Due 2026 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	175.0	175.0
Fixed Rate of 4.36%, Balloon Due 2026 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	150.0	150.0
Fixed Rate of 4.98% Balloon Due 2029 [Member] | Note Purchase Agreements [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	100.0	100.0
Prime or LIBOR plus up to 1.45%, expires September 19, 2018 [Member] | Multi Currency Credit Agreement [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	155.0	140.0
Interbank rates plus 1.05%, Expires May 18, 2017 [Member] | AUD denominated tranche [Member] | Facility B [Member] | Premium Financing Debt Facility [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	61.8	95.0
Interbank rates plus 1.05%, Expires May 18, 2017 [Member] | NZD denominated tranche [Member] | Facility B [Member] | Premium Financing Debt Facility [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	8.6	17.8
Interbank rates plus 0.55%, Expires May 18, 2017 [Member] | AUD denominated tranche [Member] | Facility C and D [Member] | Premium Financing Debt Facility [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	14.3	7.7
Interbank rates plus 0.55%, Expires May 18, 2017 [Member] | NZD denominated tranche [Member] | Facility C and D [Member] | Premium Financing Debt Facility [Member]
Debt Instrument [Line Items]
Semi-annual payments of interest	$ 6.9	$ 7.4

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Business Combinations - Summary of Estimated Fair Values of Net Assets Acquired (Detail) $ in Millions	Jun. 30, 2015 USD ($)
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Cash	$ 3.3
Other current assets	33.9
Fixed assets	6.6
Noncurrent assets	0.6
Goodwill	143.4
Expiration lists	150.4
Non-compete agreements	1.6
Total assets acquired	339.8
Current liabilities	25.4
Noncurrent liabilities	7.1
Total liabilities assumed	32.5
Total net assets acquired	307.3
e3 Financial, Inc. (EFI) [Member]
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Goodwill	6.1
Expiration lists	3.7
Non-compete agreements	0.1
Total assets acquired	9.9
Total net assets acquired	9.9
Cohn Financial Group, LLC (CFG) [Member]
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Cash	0.1
Goodwill	11.3
Expiration lists	12.0
Non-compete agreements	0.1
Total assets acquired	23.5
Total net assets acquired	23.5
NationAir Aviation Insurance (NAI) [Member]
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Other current assets	4.7
Goodwill	9.8
Expiration lists	5.2
Non-compete agreements	0.2
Total assets acquired	19.9
Current liabilities	4.2
Noncurrent liabilities	2.1
Total liabilities assumed	6.3
Total net assets acquired	13.6
Burns-Fazzi, Brock & Associates, LLC (BFB) [Member]
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Cash	0.1
Other current assets	0.3
Goodwill	18.5
Expiration lists	23.0
Non-compete agreements	0.1
Total assets acquired	42.0
Current liabilities	0.2
Total liabilities assumed	0.2
Total net assets acquired	41.8
Madison Risk & Insurance Services, Inc. (MRI) [Member]
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Cash	0.1
Other current assets	0.6
Goodwill	6.3
Expiration lists	9.9
Non-compete agreements	0.1
Total assets acquired	17.0
Current liabilities	0.6
Total liabilities assumed	0.6
Total net assets acquired	16.4
Integrated Healthcare Strategies, LLC (IHS) [Member]
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Other current assets	8.3
Fixed assets	1.1
Goodwill	24.8
Expiration lists	24.8
Non-compete agreements	0.1
Total assets acquired	59.1
Current liabilities	3.4
Total liabilities assumed	3.4
Total net assets acquired	55.7
Monument, LLC (ML) [Member]
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Other current assets	0.2
Goodwill	5.7
Expiration lists	13.0
Total assets acquired	18.9
Total net assets acquired	18.9
Solid Benefit Guidance Limited Liability Company (SBG) [Member]
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Other current assets	1.4
Goodwill	30.9
Expiration lists	27.7
Non-compete agreements	0.1
Total assets acquired	60.1
Current liabilities	0.7
Total liabilities assumed	0.7
Total net assets acquired	59.4
Sixteen Other Acquisitions [Member]
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items]
Cash	3.0
Other current assets	18.4
Fixed assets	5.5
Noncurrent assets	0.6
Goodwill	30.0
Expiration lists	31.1
Non-compete agreements	0.8
Total assets acquired	89.4
Current liabilities	16.3
Noncurrent liabilities	5.0
Total liabilities assumed	21.3
Total net assets acquired	$ 68.1

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Segment Information - Schedule of Segment Reporting Information by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Segment Reporting Information [Line Items]
Total revenues	$ 1,371.4	$ 1,179.3	$ 2,602.7	$ 2,094.3
Earnings (loss) before income taxes	128.5	111.9	159.4	166.6
Identifiable assets at June 30, 2015 and 2014	10,716.1		10,716.1		$ 10,010.0
Brokerage [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenues	885.6	737.9	1,636.7	1,302.3
Earnings (loss) before income taxes	156.6	136.2	217.6	186.5
Identifiable assets at June 30, 2015 and 2014	8,894.1	8,017.6	8,894.1	8,017.6
Risk Management [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenues	189.4	172.8	366.6	337.0
Earnings (loss) before income taxes	26.7	21.2	50.3	39.9
Identifiable assets at June 30, 2015 and 2014	623.3	611.0	623.3	611.0
Corporate [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenues	296.4	268.6	599.4	455.0
Earnings (loss) before income taxes	(54.8)	(45.5)	(108.5)	(59.8)
Identifiable assets at June 30, 2015 and 2014	$ 1,198.7	$ 1,390.7	$ 1,198.7	$ 1,390.7

XML

Nature of Operations and Basis of Presentation - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) Country Segment	Jun. 30, 2014 USD ($)
Business And Basis Of Presentation [Line Items]
Number of countries in which the company has operations | Country			31
Number of countries in which the company does business through a network of correspondent brokers and consultants | Country			140
Number of reportable operating segments | Segment			3
Total revenues	$ 1,371.4	$ 1,179.3	$ 2,602.7	$ 2,094.3
Claims Handling Operation [Member] | Risk Management [Member]
Business And Basis Of Presentation [Line Items]
Total revenues	$ 4.9	$ 4.7	$ 9.8	$ 8.9

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Credit and Other Debt Agreements - Note Purchase Agreements - Additional information (Detail) - Jun. 30, 2015 - Note Purchase Agreements [Member] - USD ($) $ in Millions	Total
Debt Instrument [Line Items]
Amount payable to redeem the notes, percent of the principal amount	100.00%
Discount rate used to compute the remaining scheduled payments of principal and interest	U.S. Treasury yields plus 0.5%
6.44% Senior Notes, Series B [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 300.0
Note payable, semi-annual payments of interest, fixed rate	6.44%
Debt instrument, maturity date	Aug. 03, 2017
5.85% Senior Notes, Series C [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 150.0
Note payable, semi-annual payments of interest, fixed rate	5.85%
5.85% Senior Notes, Series C [Member] | First Installment [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Nov. 30, 2016
5.85% Senior Notes, Series C [Member] | Second Installment [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Nov. 30, 2018
5.85% Senior Notes, Series C [Member] | Third Installment [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Nov. 30, 2019
5.18% Senior Notes, Series D [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 75.0
Note payable, semi-annual payments of interest, fixed rate	5.18%
Debt instrument, maturity date	Feb. 10, 2021
5.49% Senior Notes, Series E [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 50.0
Note payable, semi-annual payments of interest, fixed rate	5.49%
Debt instrument, maturity date	Feb. 10, 2023
3.99% Senior Notes, Series F [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 50.0
Note payable, semi-annual payments of interest, fixed rate	3.99%
Debt instrument, maturity date	Jul. 10, 2020
3.69% Senior Notes Series G [Member] | Private Placement [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Jun. 14, 2022
Private placement debt, additional amount committed to borrow	$ 200.0
Interest rate	3.69%
4.58% Senior Notes, Series H [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 325.0
Note payable, semi-annual payments of interest, fixed rate	4.58%
Debt instrument, maturity date	Feb. 27, 2024
4.73% Senior Notes, Series I [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 175.0
Note payable, semi-annual payments of interest, fixed rate	4.73%
Debt instrument, maturity date	Feb. 27, 2026
4.98% Senior Notes, Series J [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 100.0
Note payable, semi-annual payments of interest, fixed rate	4.98%
Debt instrument, maturity date	Feb. 27, 2029
Senior Notes Series H, I & J [Member]
Debt Instrument [Line Items]
Debt acquisition costs	$ 1.4
2.80% Senior Notes, Series K [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 50.0
Note payable, semi-annual payments of interest, fixed rate	2.80%
Debt instrument, maturity date	Jun. 24, 2018
3.20% Senior Notes, Series L [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 50.0
Note payable, semi-annual payments of interest, fixed rate	3.20%
Debt instrument, maturity date	Jun. 24, 2019
3.48% Senior Notes, Series M [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 50.0
Note payable, semi-annual payments of interest, fixed rate	3.48%
Debt instrument, maturity date	Jun. 24, 2020
4.13% Senior Notes, Series N [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 200.0
Note payable, semi-annual payments of interest, fixed rate	4.13%
Debt instrument, maturity date	Jun. 24, 2023
4.31% Senior Notes, Series O [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 200.0
Note payable, semi-annual payments of interest, fixed rate	4.31%
Debt instrument, maturity date	Jun. 24, 2025
4.36% Senior Notes, Series P [Member]
Debt Instrument [Line Items]
Notes issued and sold	$ 150.0
Note payable, semi-annual payments of interest, fixed rate	4.36%
Debt instrument, maturity date	Jun. 24, 2026
Senior Notes Series K, L, M, N, O & P [Member]
Debt Instrument [Line Items]
Debt acquisition costs	$ 2.6

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Investments - Clean Coal Investments - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) Entity	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) Entity Plant	Jun. 30, 2014 USD ($)	Mar. 01, 2014 USD ($) Plant	Mar. 01, 2013 Plant
Schedule of Equity Method Investments [Line Items]
Total revenues	$ 1,371.4	$ 1,179.3	$ 2,602.7	$ 2,094.3
Number of clean coal production plants seeking and negotiating for long term production contract | Plant			8
Limited Liability Company [Member]
Schedule of Equity Method Investments [Line Items]
Carrying value of prior non-controlling interest in limited liability company on acquisition date					$ 15.6
Ownership interest acquired in a limited liability company	50.00%		50.00%
2009 Era Plants [Member]
Schedule of Equity Method Investments [Line Items]
Number of additional plants acquired | Plant					7	12
Number of additional plants acquired with ownership interest range one | Plant						9
Number of additional plants acquired with ownership interest range two | Plant						3
Ownership interest before additional nine plants acquired						24.50%
Ownership interest after additional nine plants acquired						49.50%
Ownership interest before additional three plants acquired						25.00%
Ownership interest after additional three plants acquired						60.00%
Purchase of consideration received	$ 8.0		$ 8.0
Payment of cash and other consideration	5.0		5.0
Gain on purchase of additional interest	$ 11.4		$ 11.4
Prior percentage of equity interest in limited liability company	25.00%		25.00%
Additional percentage of equity interest in limited liability company upon acquisition	35.00%		35.00%
Fixed assets and other amortizable intangible assets acquired upon acquisition	$ 26.3		$ 26.3
Carrying value of prior non-controlling interest in limited liability company on acquisition date	4.8		4.8
Other assets acquired upon acquisition	6.8		$ 6.8
Ownership interest before additional seven plants acquired					49.50%
Ownership interest after additional seven plants acquired					100.00%
2011 Era Plants [Member]
Schedule of Equity Method Investments [Line Items]
Number of additional plants acquired | Plant					5
Gain on purchase of additional interest					$ 25.6
Fixed assets and other amortizable intangible assets acquired upon acquisition					$ 26.3
Ownership interest before additional one plant acquired					48.80%
Ownership interest after additional one plant acquired					90.00%
Ownership interest before additional three plants acquired					49.00%
Ownership interest after additional three plants acquired					100.00%
Ownership interest before additional one plant acquired					98.00%
Ownership interest after additional one plant acquired					100.00%
Total revenues	131.3
Total expenses	$ 139.8
Chem-Mod LLC [Member]
Schedule of Equity Method Investments [Line Items]
Number of clean coal production plants owned | Plant			34
Chem-Mod LLC [Member] | 2009 Era Plants [Member]
Schedule of Equity Method Investments [Line Items]
Number of clean coal production plants owned | Plant			14
Chem-Mod LLC [Member] | 2011 Era Plants [Member]
Schedule of Equity Method Investments [Line Items]
Number of clean coal production plants owned | Plant			20
Long Term Production Contracts [Member]
Schedule of Equity Method Investments [Line Items]
Number of clean coal production plants owned | Plant			26
Clean-Coal Investments [Member]
Schedule of Equity Method Investments [Line Items]
Number of variable interest entities | Entity	1		1
Clean-Coal Investments [Member] | VIE [Member]
Schedule of Equity Method Investments [Line Items]
Total assets of limited liability companies	$ 9.9		$ 9.9
Total liability of limited liability companies	$ 7.1		7.1
Total revenues of limited liability companies			16.1
Total expenses of limited liability companies			$ 19.7

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Restricted Stock, Performance Share and Cash Awards - Additional Information (Detail)			3 Months Ended				6 Months Ended
	Mar. 11, 2015 USD ($) shares	Mar. 12, 2014 USD ($) shares	Jun. 30, 2015 USD ($) shares	Mar. 31, 2015 USD ($) shares	Jun. 30, 2014 USD ($)	Mar. 31, 2014 USD ($) shares	Jun. 30, 2015 USD ($) Times shares	Jun. 30, 2014 USD ($)	Dec. 31, 2014 shares	Mar. 31, 2013 shares	Mar. 13, 2013 USD ($) shares	Mar. 16, 2012 USD ($) shares
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Share-based compensation, shares outstanding | shares			9,100,000				9,100,000		8,400,000
Shares granted in the period | shares				362,600		323,600
Fair value of grants in period				$ 16,700,000		$ 15,200,000
Ultimate award value, multiples of original value of the units, minimum | Times							0.5
Ultimate award value, multiples of original value of the units, maximum | Times							1.5
Minimum [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Period of Service from Grant Date Stock Options Awarded Not Subject to Forfeiture							2 years
Executive Officer [Member] | Minimum [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Minimum age of employee with not subject to award forfeiture on condition compliance							55 years
Restricted Stock Units (RSUs) [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Share-based compensation, shares outstanding, Value			$ 2,000,000				$ 2,000,000
Share-based compensation, shares outstanding | shares			1,500,000				1,500,000
Share based payment award vesting date				Mar. 11, 2019		Mar. 12, 2018
Restricted stock or unit expense			$ 4,700,000		$ 3,900,000		$ 7,500,000	$ 6,500,000
Restricted Stock Units (RSUs) [Member] | Minimum [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Period of Service from Grant Date Stock Options Awarded Not Subject to Forfeiture				2 years		2 years
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | Minimum [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Minimum age of employee with not subject to award forfeiture on condition compliance				55 years		55 years
Restricted Stock Plan [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Shares granted in the period | shares				362,600		323,600
Unvested Restricted Stock [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Total intrinsic value			66,500,000		58,200,000		66,500,000	58,200,000
Equity awards with an aggregate fair value							$ 9,900,000	9,500,000
Performance Shares [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Shares authorized | shares	53,900	48,800
Performance unit awards approved, Fair value	$ 2,500,000	$ 2,300,000
Performance unit awards, Terms							Granted units for the 2015 and 2014 provisional awards will fully vest based on continuous employment through January 1, 2018 and January 1, 2017, respectively, and will be settled in shares of our common stock on a one-for-one basis as soon as practicable in 2018 and 2017, respectively.
Performance period, years							1 year
Vesting period, years							2 years
Cash Awards [Member] | Officer and Key Employees [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Performance period, years							1 year
Vesting period, years							2 years
Provisional compensation cash awards approved for future grant by compensation committee, value	$ 14,600,000	$ 10,800,000									$ 10,500,000	$ 13,100,000
Provisional compensation cash award approved for future grant by compensation committee, units | shares	315,000	229,000		220,000		263,000				365,000	269,000	368,000
2015 Provisional Cash Awards [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Cash-based compensation awards, expenses			0
2014 Provisional Cash Awards [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Cash-based compensation awards, expenses			1,300,000				$ 2,500,000	0
2013 Provisional Cash Awards [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Cash-based compensation awards, expenses			$ 1,600,000		1,500,000		$ 3,000,000	3,000,000
2012 Provisional Cash Awards [Member]
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items]
Provisional compensation cash award approved for future grant by compensation committee, units | shares			300,000				300,000
Cash-based compensation awards, expenses					$ 1,800,000		$ 0	$ 4,500,000
Grants vested in period fair value			$ 15,800,000				$ 15,800,000

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Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2015 USD ($)
Goodwill [Line Items]
Beginning Balance	$ 3,449.6
Goodwill acquired during the period	143.4
Goodwill adjustments due to appraisals and other acquisition adjustments	32.6
Foreign currency translation adjustments during the period	(56.2)
Ending Balance	3,569.4
Brokerage [Member]
Goodwill [Line Items]
Beginning Balance	3,427.5
Goodwill acquired during the period	141.3
Goodwill related to transfer of operations between segments	(3.4)
Goodwill adjustments due to appraisals and other acquisition adjustments	32.6
Foreign currency translation adjustments during the period	(56.2)
Ending Balance	3,541.8
Risk Management [Member]
Goodwill [Line Items]
Beginning Balance	22.1
Goodwill acquired during the period	2.1
Goodwill related to transfer of operations between segments	3.4
Goodwill adjustments due to appraisals and other acquisition adjustments	0.0
Foreign currency translation adjustments during the period	0.0
Ending Balance	27.6
Corporate [Member]
Goodwill [Line Items]
Beginning Balance	0.0
Goodwill acquired during the period	0.0
Goodwill related to transfer of operations between segments	0.0
Goodwill adjustments due to appraisals and other acquisition adjustments	0.0
Foreign currency translation adjustments during the period	0.0
Ending Balance	$ 0.0

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Nature of Operations and Basis of Presentation

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Basis of Presentation

1. Nature of Operations and Basis of Presentation

Arthur J. Gallagher & Co. and its subsidiaries, collectively referred to herein as we, our, us or the company, provide insurance brokerage and risk management services to a wide variety of commercial, industrial, institutional and governmental organizations through three reportable operating segments. Commission and fee revenue generated by the brokerage segment is primarily related to the negotiation and placement of insurance for our clients. Fee revenue generated by the risk management segment is primarily related to claims management, information management, risk control consulting (loss control) services and appraisals in the property/casualty market. Investment income and other revenue are generated from our premium financing operations and our investment portfolio, which includes invested cash and restricted funds, as well as clean energy and other investments. We are headquartered in Itasca, Illinois, have operations in 31 countries and offer client-service capabilities in more than 140 countries globally through a network of correspondent insurance brokers and consultants.

We have prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements have been omitted pursuant to such rules and regulations. The unaudited consolidated financial statements included herein are, in the opinion of management, prepared on a basis consistent with our audited consolidated financial statements for the year ended December 31, 2014 and include all normal recurring adjustments necessary for a fair presentation of the information set forth. The quarterly results of operations are not necessarily indicative of the results of operations to be reported for subsequent quarters or the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014. In the preparation of our unaudited consolidated financial statements as of June 30, 2015, management evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued, for potential recognition or disclosure therein.

Reclassification - In first quarter 2015, we transferred management of a claims handling operation from the brokerage segment to the risk management segment. Total revenues related to this operation were $4.9 million and $4.7 million in second quarters 2015 and 2014, respectively, and $9.8 million and $8.9 million in the six-month periods ended June 30, 2015 and 2014, respectively. We made the applicable segment reclassifications to the prior-period amounts to conform to the current period presentation. The changes in the segment structure affect only the manner in which the results for the reportable segments were previously reported. These reclassifications did not impact our previously reported consolidated net earnings or financial position.

Correction of Immaterial Error - Effective January 1, 2015, we obtained control over a previously uncontrolled partially-owned subsidiary and beginning January 1, 2015 we began consolidating its financial results, which were previously accounted for using the equity method of accounting. In conjunction with this change, effective January 1, 2015, we also changed our consolidated statement of earnings and consolidated balance sheet to separately present the noncontrolling interests portions for other partially owned subsidiaries that we had been consolidating. In accordance with Accounting Standards Codification Topic No. 250, “Accounting Changes and Error Corrections” (ASC 250), we evaluated the materiality of these changes from quantitative and qualitative perspectives and concluded that the change in presentation was not material to any of our prior period financial statements and in particular, these changes had no impact on net earnings per share. We revised our consolidated statement of earnings for the three-month and six-month periods ended June 30, 2014 and the consolidated balance sheet as of December 31, 2014 to conform to the current period presentation. In prior reporting periods, we included such amounts in operating expenses and other non-current liabilities, respectively. Net earnings and total stockholders’ equity in prior reporting periods are now referred to as net earnings attributable to controlling interests and stockholders’ equity attributable to controlling interests, respectively, in the current period presentation. As stated above, this change in presentation had no impact on net earnings per share.

The effect of the immaterial changes to the presentation of our consolidated statement of earnings for the three-month and six-month periods ended June 30, 2014 is summarized below:

	Three-month period ended June 30,						Six-month period ended June 30,
	As Previously Reported			As Restated			As Previously Reported			As Restated
Operating expense	$	184.0		$	179.2		$	341.2		$	328.0
Earnings before income taxes	$	107.1		$	111.9		$	153.4		$	166.6
Provision for income taxes		(1.9	)		(1.8	)		(4.9	)		(4.9	)
Net earnings	$	109.0			113.7		$	158.3			171.5
Net earnings attributable to noncontrolling interests					4.7						13.2
Net earnings attributable to controlling interests				$	109.0					$	158.3
Basic net earnings per share	$	0.71		$	0.71		$	1.10		$	1.10
Diluted net earnings per share	$	0.70		$	0.70		$	1.09		$	1.09

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Retirement Plans - Components of Net Periodic Pension Benefit Cost (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Service cost	$ 0.4	$ 0.1	$ 0.5	$ 0.2
Interest cost on benefit obligation	2.8	3.2	5.4	6.4
Expected return on plan assets	(3.8)	(4.7)	(7.7)	(9.4)
Amortization of net actuarial loss	1.6	0.6	3.2	1.2
Net periodic benefit cost (earnings)	$ 1.0	$ (0.8)	$ 1.4	$ (1.6)

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Business Combinations - Summary of Unaudited Pro Forma Historical Results (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Business Combinations [Abstract]
Total revenues	$ 1,379.3	$ 1,209.5	$ 2,637.6	$ 2,155.6
Net earnings attributable to noncontrolling interests	$ 139.4	$ 110.7	$ 162.7	$ 162.3
Basic net earnings per share	$ 0.81	$ 0.70	$ 0.95	$ 1.09
Diluted net earnings per share	$ 0.80	$ 0.69	$ 0.95	$ 1.08

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Credit and Other Debt Agreements (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Summary of Corporate and Other Debt

The following is a summary of our corporate and other debt (in millions):

	June 30, 2015		December 31, 2014
Note Purchase Agreements:
Semi-annual payments of interest, fixed rate of 6.44%, balloon due 2017	$	300.0	$	300.0
Semi-annual payments of interest, fixed rate of 5.85%, $50 million due in 2016, 2018 and 2019		150.0		150.0
Semi-annual payments of interest, fixed rate of 2.80%, balloon due 2018		50.0		50.0
Semi-annual payments of interest, fixed rate of 3.20%, balloon due 2019		50.0		50.0
Semi-annual payments of interest, fixed rate of 3.99%, balloon due 2020		50.0		50.0
Semi-annual payments of interest, fixed rate of 3.48%, balloon due 2020		50.0		50.0
Semi-annual payments of interest, fixed rate of 5.18%, balloon due 2021		75.0		75.0
Semi-annual payments of interest, fixed rate of 3.69%, balloon due 2022		200.0		200.0
Semi-annual payments of interest, fixed rate of 5.49%, balloon due 2023		50.0		50.0
Semi-annual payments of interest, fixed rate of 4.13%, balloon due 2023		200.0		200.0
Semi-annual payments of interest, fixed rate of 4.58%, balloon due 2024		325.0		325.0
Semi-annual payments of interest, fixed rate of 4.31%, balloon due 2025		200.0		200.0
Semi-annual payments of interest, fixed rate of 4.73%, balloon due 2026		175.0		175.0
Semi-annual payments of interest, fixed rate of 4.36%, balloon due 2026		150.0		150.0
Semi-annual payments of interest, fixed rate of 4.98%, balloon due 2029		100.0		100.0
Total Note Purchase Agreements		2,125.0		2,125.0
Credit Agreement:
Periodic payments of interest and principal, prime or LIBOR plus up to 1.45%, expires September 19, 2018		155.0		140.0
Premium Financing Debt Facility - expires May 18, 2017:
Periodic payments of interest and principal, Interbank rates plus 1.05% for Facility B; plus 0.55% for Facilities C and D
Facility B
AUD denominated tranche		61.8		95.0
NZD denominated tranche		8.6		17.8
Facility C and D
AUD denominated tranche		14.3		7.7
NZD denominated tranche		6.9		7.4
Total Premium Financing Debt Facility		91.6		127.9
Total corporate and other debt	$	2,371.6	$	2,392.9

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Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying Amount of Goodwill Allocated by Domestic and Foreign Operations

The carrying amount of goodwill at June 30, 2015 and December 31, 2014 allocated by domestic and foreign operations is as follows (in millions):

	Brokerage		Risk Management		Corporate		Total
At June 30, 2015
United States	$	1,783.8	$	23.5	$	—	$	1,807.3
United Kingdom		825.0		3.8		—		828.8
Canada		316.3		—		—		316.3
Australia		372.3		—		—		372.3
Other foreign, principally New Zealand		244.4		0.3		—		244.7
Total goodwill - net	$	3,541.8	$	27.6	$	—	$	3,569.4
At December 31, 2014
United States	$	1,652.6	$	20.2	$	—	$	1,672.8
United Kingdom		818.7		1.9		—		820.6
Canada		318.5		—		—		318.5
Australia		336.8		—		—		336.8
Other foreign, principally New Zealand		300.9		—		—		300.9
Total goodwill - net	$	3,427.5	$	22.1	$	—	$	3,449.6

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the six-month period ended June 30, 2015 are as follows (in millions):

	Brokerage			Risk Management		Corporate		Total
Balance as of December 31, 2014	$	3,427.5		$	22.1	$	—	$	3,449.6
Goodwill acquired during the period		141.3			2.1		—		143.4
Goodwill related to transfer of operations between segments		(3.4	)		3.4		—		—
Goodwill adjustments due to appraisals and other acquisition adjustments		32.6			—		—		32.6
Foreign currency translation adjustments during the period		(56.2	)		—		—		(56.2	)
Balance as of June 30, 2015	$	3,541.8		$	27.6	$	—	$	3,569.4

Major Classes of Amortizable Intangible Assets

Major classes of amortizable intangible assets at June 30, 2015 and December 31, 2014 consist of the following (in millions):

	June 30, 2015			December 31, 2014
Expiration lists	$	2,560.1		$	2,461.9
Accumulated amortization - expiration lists		(823.3	)		(719.3	)
		1,736.8			1,742.6
Non-compete agreements		42.7			43.2
Accumulated amortization - non-compete agreements		(32.5	)		(29.5	)
		10.2			13.7
Trade names		27.2			29.7
Accumulated amortization - trade names		(12.7	)		(10.0	)
		14.5			19.7
Net amortizable assets	$	1,761.5		$	1,776.0

Estimated Aggregate Amortization Expense

Estimated aggregate amortization expense for each of the next five years is as follows:

2015 (remaining six months)	$	114.9
2016		224.2
2017		213.6
2018		199.6
2019		186.3
Total	$	938.6

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Stock Option Plans - Additional information (Detail) - USD ($)			3 Months Ended				6 Months Ended
	Mar. 11, 2015	Mar. 12, 2014	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock Option Plans [Line Items]
Maximum number of shares available				362,600		323,600
Maximum number of shares granted during any fiscal year to any person							200,000
Number of years options expire, maximum							7 years	7 years
Compensation expense related to stock option grants			$ 2,900,000		$ 2,700,000		$ 5,100,000	$ 4,000,000
Total intrinsic value of options exercised							22,800,000	$ 19,700,000
Total unrecognized compensation cost related to nonvested options			$ 41,200,000				$ 41,200,000
Weighted average period, years							4 years
Officer and Key Employees [Member]
Stock Option Plans [Line Items]
Shares available for grant	1,941,000	1,923,000
Stock options granted, exercise percentage, on the anniversary date of the grant in 2018	34.00%	34.00%
Stock options granted, exercise percentage, on the anniversary date of the grant in 2019	33.00%	33.00%
Stock options granted, exercise percentage, on the anniversary date of the grant in 2020	33.00%	33.00%
Long Term Incentive Plan [Member]
Stock Option Plans [Line Items]
Maximum number of shares available							2,000,000
Shares available for grant			7,000,000				7,000,000
Performance-Based Restricted Stock [Member]
Stock Option Plans [Line Items]
Maximum number of shares granted during any fiscal year to any person							100,000
Cash Settled Performance Shares [Member] | Performance-Based Restricted Stock [Member]
Stock Option Plans [Line Items]
Maximum amount payable for the shares granted during any fiscal year to any person							$ 5,000,000
Stock Settled Performance Shares [Member] | Performance-Based Restricted Stock [Member]
Stock Option Plans [Line Items]
Maximum number of shares granted during any fiscal year to any person							100,000
Maximum [Member]
Stock Option Plans [Line Items]
Maximum period for the exercise of stock options, years							7 years
Minimum [Member]
Stock Option Plans [Line Items]
Minimum exercise price of stock options, percent of fair market value of a share of common stock on the date of grant							100.00%
Period of Service from Grant Date Stock Options Awarded Not Subject to Forfeiture							2 years
Minimum [Member] | Executive Officer [Member]
Stock Option Plans [Line Items]
Minimum age of employee with not subject to award forfeiture on condition compliance							55 years
Black-Scholes Option Pricing Model [Member]
Stock Option Plans [Line Items]
Weighted average fair value per option for all options							$ 9.25	$ 9.66

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Other Current Assets - Summary of Major Classes of Other Current Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Premium finance advances and loans	$ 219.8	$ 232.6
Accrued supplemental, direct bill and other receivables	193.7	156.3
Refined coal production related receivables	130.4	103.5
Deferred income taxes - current	106.7	102.2
Prepaid expenses	80.8	72.1
Total other current assets	$ 731.4	$ 666.7

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net EPS

The following table sets forth the computation of basic and diluted net earnings per share (in millions, except per share data):

	Three-month period ended June 30,				Six-month period ended June 30,
	2015		2014		2015		2014
Net earnings attributable to controlling interests	$	139.3	$	109.0	$	161.2	$	158.3
Weighted average number of common shares outstanding		170.6		154.3		168.1		144.2
Dilutive effect of stock options using the treasury stock method		1.1		1.4		1.2		1.6
Weighted average number of common and common equivalent shares outstanding		171.7		155.7		169.3		145.8
Basic net earnings per share	$	0.82	$	0.71	$	0.96	$	1.10
Diluted net earnings per share	$	0.81	$	0.70	$	0.95	$	1.09

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Stock Option Plans (Tables)

6 Months Ended

Jun. 30, 2015

Text Block [Abstract]

Black-Scholes Option Pricing Model with Weighted Average

For purposes of expense recognition, the estimated fair values of the stock option grants are amortized to expense over the options’ vesting period. We estimated the fair value of stock options at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:

	2015			2014
Expected dividend yield		3.0	%		3.0	%
Expected risk-free interest rate		1.8	%		1.8	%
Volatility		28.2	%		28.9	%
Expected life (in years)		5.5			5.5

Stock Option Activity and Related Information

The following is a summary of our stock option activity and related information for 2015 (in millions, except exercise price and year data):

	Six-month period ended June 30, 2015
	Shares Under Option			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Beginning balance		8.4		$	35.49
Granted		1.9			46.17
Exercised		(1.2	)		27.50
Forfeited or canceled		—			—
Ending balance		9.1		$	38.90		4.55	$	76.5
Exercisable at end of period		2.4		$	28.46		2.26	$	44.5
Ending vested and expected to vest		8.9		$	38.78		4.52	$	76.0

Other Information Regarding Stock Options Outstanding and Exercisable

Other information regarding stock options outstanding and exercisable at June 30, 2015 is summarized as follows (in millions, except exercise price and year data):

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$    21.28   -  $   30.95		2.2		2.04	$	27.24		2.0	$	26.95
31.34   -        39.17		3.0		4.26		37.64		0.4		35.65
46.17   -        46.17		1.9		6.70		46.17		—		—
46.87   -        47.92		2.0		5.71		46.88		—		—
$    21.28   -  $   47.92		9.1		4.55	$	38.90		2.4	$	28.46

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Consolidated Statement of Stockholders' Equity (Unaudited) (Parenthetical) $ in Millions	6 Months Ended
	Jun. 30, 2015 USD ($)
Statement of Stockholders' Equity [Abstract]
Tax effect on net change in pension liability	$ 0.5
Net change in fair value of derivative instruments, tax	$ 4.3

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Retirement Plans (Tables)

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Pension Benefit Cost

The components of the net periodic pension benefit cost for the plan consists of the following (in millions):

	Three-month period ended June 30,						Six-month period ended June 30,
	2015			2014			2015			2014
Service cost	$	0.4		$	0.1		$	0.5		$	0.2
Interest cost on benefit obligation		2.8			3.2			5.4			6.4
Expected return on plan assets		(3.8	)		(4.7	)		(7.7	)		(9.4	)
Amortization of net actuarial loss		1.6			0.6			3.2			1.2
Net periodic benefit cost (earnings)	$	1.0		$	(0.8	)	$	1.4		$	(1.6	)

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Business Combinations - Acquisition Method for Recording Business Combinations (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 2015
e3 Financial, Inc. (EFI) [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Jan. 01, 2015
Aequus Trade Credit LLC [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Jan. 31, 2015
Cohen & Lord Insurance Brokers Limited [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Feb. 01, 2015
Cohn Financial Group, LLC (CFG) [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Feb. 01, 2015
Excel Insurance Services, Inc. [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Feb. 01, 2015
Metcom Excess [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Feb. 01, 2015
NationAir Aviation Insurance (NAI) [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Feb. 01, 2015
Evolution Group of Companies [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Feb. 06, 2015
Burns-Fazzi, Brock & Associates, LLC (BFB) [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Apr. 01, 2015
Madison Risk & Insurance Services, Inc. (MRI) [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Apr. 01, 2015
Integrated Healthcare Strategies, LLC (IHS) [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	May 01, 2015
James R. Weir Insurance Agency, Inc. [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	May 01, 2015
McDowall Associates Human Resources Consultants Ltd. [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	May 01, 2015
Vital Benefits, Inc. [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	May 01, 2015
Monument, LLC (ML) [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Jun. 01, 2015
Solid Benefit Guidance Limited Liability Company (SBG) [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Jun. 01, 2015
Eight Other Acquisitions [Member]
Business Acquisition [Line Items]
Effective Year of Acquisition	2015

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Credit and Other Debt Agreements - Credit Agreement - Additional information (Detail) NZD in Millions, AUD in Millions	6 Months Ended
	Jun. 30, 2015 USD ($) Institution	Jun. 30, 2015 AUD Institution	Jun. 30, 2015 NZD Institution	Jun. 30, 2014 USD ($)	Jun. 30, 2015 AUD	Jun. 30, 2015 NZD	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Liabilities	$ 7,004,600,000						$ 6,704,900,000
Line of credit facility, increase in additional borrowings	263,000,000			$ 870,400,000
Net borrowings on premium financing debt facility	$ (29,600,000)			$ 139,000,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Date of expire	May 18, 2017	May 18, 2017	May 18, 2017
Interest rate for facility	The interest rates on Facility B are Interbank rates, which vary by tranche, duration and currency, plus a margin of 1.05%. The interest rates on Facilities C and D are 30 day Interbank rates, plus a margin of 0.55%. The annual fee for Facility B is 0.4725% of the undrawn commitments for the two tranches of the facility. The annual fee for Facilities C and D is 0.50% of the total commitments of the facilities.	The interest rates on Facility B are Interbank rates, which vary by tranche, duration and currency, plus a margin of 1.05%. The interest rates on Facilities C and D are 30 day Interbank rates, plus a margin of 0.55%. The annual fee for Facility B is 0.4725% of the undrawn commitments for the two tranches of the facility. The annual fee for Facilities C and D is 0.50% of the total commitments of the facilities.	The interest rates on Facility B are Interbank rates, which vary by tranche, duration and currency, plus a margin of 1.05%. The interest rates on Facilities C and D are 30 day Interbank rates, plus a margin of 0.55%. The annual fee for Facility B is 0.4725% of the undrawn commitments for the two tranches of the facility. The annual fee for Facilities C and D is 0.50% of the total commitments of the facilities.
Up front fee percentage for entering into premium financing debt facility	0.30%	0.30%	0.30%
Debt instrument fair value amount	$ 91,600,000
Multi Currency Credit Agreement [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 600,000,000
Number of financial institutions entered in unsecured multicurrency credit agreement | Institution	15	15	15
Debt instrument, maturity date	Sep. 19, 2018	Sep. 19, 2018	Sep. 19, 2018
Line of credit facility, maximum amount outstanding during period	$ 850,000,000
Fixed rate (alternative one) over LIBOR	0.85%	0.85%	0.85%
Fixed rate (alternative two) over LIBOR	0.95%	0.95%	0.95%
Fixed rate (alternative three) over LIBOR	1.05%	1.05%	1.05%
Fixed rate (alternative four) over LIBOR	1.25%	1.25%	1.25%
Fixed rate (alternative five) over LIBOR	1.45%	1.45%	1.45%
Annual facility fee of revolving credit facility (alternative one)	0.15%	0.15%	0.15%
Annual facility fee of revolving credit facility (alternative two)	0.175%	0.175%	0.175%
Annual facility fee of revolving credit facility (alternative three)	0.20%	0.20%	0.20%
Annual facility fee of revolving credit facility (alternative four)	0.25%	0.25%	0.25%
Annual facility fee of revolving credit facility (alternative five)	0.30%	0.30%	0.30%
Debt acquisition costs	$ 2,100,000
Estimated fair value of outstanding borrowings	155,000,000
Multi Currency Credit Agreement [Member] | Swing Loan [Member]
Debt Instrument [Line Items]
Long-term debt, gross	50,000,000
Multi Currency Credit Agreement [Member] | Standby Letters of Credit [Member]
Debt Instrument [Line Items]
Long-term debt, gross	75,000,000
Line of credit facility, amount outstanding	22,600,000
Liabilities	11,200,000
Line of credit facility, fair value of amount outstanding	155,000,000
Line of credit facility, remaining borrowing capacity	422,400,000
Line of credit facility, increase in additional borrowings	$ 52,400,000
Credit Facility Two [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, amount outstanding					AUD 80.0	NZD 12.5
Line of credit facility, remaining borrowing capacity					70.0	22.5
Net borrowings on premium financing debt facility		AUD 150.0	NZD 35.0
Additional margin percentage on interest rate	1.05%	1.05%	1.05%
Annual fee percentage	0.4725%	0.4725%	0.4725%
Credit Facility Three [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, amount outstanding | AUD					18.5
Line of credit facility, remaining borrowing capacity					6.5	4.9
Net borrowings on premium financing debt facility | AUD		AUD 25.0
Additional margin percentage on interest rate	0.55%	0.55%	0.55%
Annual fee percentage	0.50%	0.50%	0.50%
Credit Facility Four [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, amount outstanding | NZD						10.1
Line of credit facility, remaining borrowing capacity					AUD 6.5	NZD 4.9
Net borrowings on premium financing debt facility | NZD			NZD 15.0
Additional margin percentage on interest rate	0.55%	0.55%	0.55%
Annual fee percentage	0.50%	0.50%	0.50%
Note Purchase Agreements [Member] | Level 3 [Member]
Debt Instrument [Line Items]
Line of credit facility, fair value of amount outstanding	$ 2,243,700,000
Long-term debt	$ 2,125,000,000

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Accumulated Other Comprehensive Earnings (Loss) - Schedule of Accumulated Other Comprehensive Earnings (Loss) Attributable to Controlling Interests (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2015 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ (260.6)
Ending Balance	(338.7)
Pension Liability [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(44.2)
Net change in period	0.7
Ending Balance	(43.5)
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(216.3)
Net change in period	(85.2)
Ending Balance	(301.5)
Fair Value of Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(0.1)
Net change in period	6.4
Ending Balance	6.3
Accumulated Other Comprehensive Earnings (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(260.6)
Net change in period	(78.1)
Ending Balance	$ (338.7)

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Consolidated Statement of Earnings (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Commissions	$ 634.3	$ 539.5	$ 1,154.0	$ 951.0
Fees	367.3	317.4	690.5	574.6
Supplemental commissions	34.8	27.9	61.7	53.3
Contingent commissions	22.8	21.8	67.3	54.0
Investment income	12.3	3.4	25.4	4.7
Gains on books of business sales	3.5	0.7	4.4	1.7
Revenues from clean coal activities	297.0	262.8	600.9	429.2
Other net (losses) revenues	(0.6)	5.8	(1.5)	25.8
Total revenues	1,371.4	1,179.3	2,602.7	2,094.3
Compensation	615.1	530.0	1,190.3	996.3
Operating	207.1	179.2	410.6	328.0
Cost of revenues from clean coal activities	306.8	270.5	616.1	441.5
Interest	26.0	21.2	51.6	37.4
Depreciation	22.8	16.6	44.3	31.4
Amortization	59.5	42.9	114.2	81.0
Change in estimated acquisition earnout payables	5.6	7.0	16.2	12.1
Total expenses	1,242.9	1,067.4	2,443.3	1,927.7
Earnings before income taxes	128.5	111.9	159.4	166.6
Benefit for income taxes	(19.1)	(1.8)	(20.6)	(4.9)
Net earnings	147.6	113.7	180.0	171.5
Net earnings attributable to noncontrolling interests	8.3	4.7	18.8	13.2
Net earnings attributable to controlling interests	$ 139.3	$ 109.0	$ 161.2	$ 158.3
Basic net earnings per share	$ 0.82	$ 0.71	$ 0.96	$ 1.10
Diluted net earnings per share	0.81	0.70	0.95	1.09
Dividends declared per common share	$ 0.37	$ 0.36	$ 0.74	$ 0.72

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Other Current Assets - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015
Schedule Of Other Current Assets [Line Items]
Collateralized delinquency period of receivables	7 days
Crombie Lockwood Oamps [Member]
Schedule Of Other Current Assets [Line Items]
Acquisition agreement date	Jun. 16, 2014

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Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net earnings	$ 161.2	$ 158.3
Adjustments to reconcile net earnings to net cash provided by operating activities:
Net gain on investments and other	(3.4)	(24.9)
Depreciation and amortization	158.5	112.4
Change in estimated acquisition earnout payables	16.2	12.1
Amortization of deferred compensation and restricted stock	11.3	11.2
Stock-based and other noncash compensation expense	5.1	5.1
Effect of changes in foreign exchange rates	0.2	(0.4)
Net change in restricted cash	(81.8)	244.5
Net change in premiums receivable	(258.6)	(150.0)
Net change in premiums payable	324.5	44.7
Net change in other current assets	(36.5)	(57.3)
Net change in accrued compensation and other accrued liabilities	10.4	53.3
Net change in fees receivable/unearned fees	(34.9)	(20.2)
Net change in income taxes payable	(26.5)	0.7
Net change in deferred income taxes	(54.4)	(46.4)
Net change in other noncurrent assets and liabilities	(50.5)	(154.1)
Unrealized foreign currency remeasurement (loss) gain	(59.1)	33.8
Net cash provided by operating activities	81.7	222.8
Cash flows from investing activities:
Net additions to fixed assets	(42.7)	(42.1)
Cash paid for acquisitions, net of cash acquired	(63.5)	(1,402.0)
Net proceeds from sales of operations/books of business	4.4	2.7
Net funding of investment transactions	(7.3)	(20.0)
Net cash used by investing activities	(109.1)	(1,461.4)
Cash flows from financing activities:
Proceeds from issuance of common stock	188.2	948.0
Tax impact from issuance of common stock	8.8	7.7
Payments for noncontrolling interests	(19.9)	(16.0)
Dividends paid	(125.3)	(106.1)
Net borrowings on premium financing debt facility	(29.6)	139.0
Borrowings on line of credit facility	263.0	870.4
Repayments on line of credit facility	(248.0)	(1,247.9)
Net borrowings of corporate related long-term debt		1,300.0
Net cash provided by financing activities	37.2	1,895.1
Effect of changes in foreign exchange rates on cash and cash equivalents	(2.5)	18.9
Net increase in cash and cash equivalents	7.3	675.4
Cash and cash equivalents at beginning of period	314.4	298.1
Cash and cash equivalents at end of period	321.7	973.5
Supplemental disclosures of cash flow information:
Interest paid	52.1	27.8
Income taxes paid	$ 48.4	$ 33.7

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Stock Option Plans - Stock Options Outstanding and Exercisable (Detail) - $ / shares shares in Millions	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	$ 21.28
Range of Exercise Prices, maximum	$ 47.92
Option Outstanding, Number Outstanding	9.1
Option Outstanding, Weighted Average Remaining Contractual Term (in years)	4 years 6 months 18 days
Option Outstanding, Weighted Average Exercise Price	$ 38.90	$ 35.49
Options Exercisable, Number Exercisable	2.4
Option Exercisable, Weighted Average Exercise Price	$ 28.46
Exercise Prices Range $ 21.28 - $ 30.95 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	21.28
Range of Exercise Prices, maximum	$ 30.95
Option Outstanding, Number Outstanding	2.2
Option Outstanding, Weighted Average Remaining Contractual Term (in years)	2 years 15 days
Option Outstanding, Weighted Average Exercise Price	$ 27.24
Options Exercisable, Number Exercisable	2.0
Option Exercisable, Weighted Average Exercise Price	$ 26.95
Exercise Prices Range $ 31.34 - $ 39.17 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	31.34
Range of Exercise Prices, maximum	$ 39.17
Option Outstanding, Number Outstanding	3.0
Option Outstanding, Weighted Average Remaining Contractual Term (in years)	4 years 3 months 4 days
Option Outstanding, Weighted Average Exercise Price	$ 37.64
Options Exercisable, Number Exercisable	0.4
Option Exercisable, Weighted Average Exercise Price	$ 35.65
Exercise Prices Range $ 46.17 - $ 46.17 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	46.17
Range of Exercise Prices, maximum	$ 46.17
Option Outstanding, Number Outstanding	1.9
Option Outstanding, Weighted Average Remaining Contractual Term (in years)	6 years 8 months 12 days
Option Outstanding, Weighted Average Exercise Price	$ 46.17
Exercise Prices Range $ 46.87 - $ 47.92 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	46.87
Range of Exercise Prices, maximum	$ 47.92
Option Outstanding, Number Outstanding	2.0
Option Outstanding, Weighted Average Remaining Contractual Term (in years)	5 years 8 months 16 days
Option Outstanding, Weighted Average Exercise Price	$ 46.88

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Accumulated Other Comprehensive Earnings (Loss) (Tables)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Earnings (Loss) Attributable to Controlling Interests

The after-tax components of our accumulated other comprehensive earnings (loss) attributable to controlling interests consist of the following:

	Pension Liability			Foreign Currency Translation			Fair Value of Derivative Investments			Accumulated Comprehensive Earnings (Loss)
Balance as of December 31, 2014	$	(44.2	)	$	(216.3	)	$	(0.1	)	$	(260.6	)
Net change in period		0.7			(85.2	)		6.4			(78.1	)
Balance as of June 30, 2015	$	(43.5	)	$	(301.5	)	$	6.3		$	(338.7	)

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Investments - Investments Reported in Other Current and Non-Current Assets (Parenthetical) (Detail) - Clean-Coal Investments [Member]	6 Months Ended	12 Months Ended
	Jun. 30, 2015 Entity Plant	Dec. 31, 2014 Entity Plant
Schedule of Equity Method Investments [Line Items]
Number of variable interest entities	1
Fourteen 2009 Era Clean Coal Plants [Member] | Controlling Interest [Member]
Schedule of Equity Method Investments [Line Items]
Number of coal plants | Plant	14	14
Number of variable interest entities	5	5
One 2011 Era Clean Coal Plant [Member] | Noncontrolling Interests [Member]
Schedule of Equity Method Investments [Line Items]
Number of coal plants | Plant	1	1
Number of variable interest entities	1	1
Nineteen 2011 Era Clean Coal Plants [Member] | Controlling Interest [Member]
Schedule of Equity Method Investments [Line Items]
Number of coal plants | Plant	19	19
Number of variable interest entities	14	14

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Accumulated Other Comprehensive Earnings (Loss)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Accumulated Other Comprehensive Earnings (Loss)

14. Accumulated Other Comprehensive Earnings (Loss)

The after-tax components of our accumulated other comprehensive earnings (loss) attributable to controlling interests consist of the following:

	Pension Liability			Foreign Currency Translation			Fair Value of Derivative Investments			Accumulated Comprehensive Earnings (Loss)
Balance as of December 31, 2014	$	(44.2	)	$	(216.3	)	$	(0.1	)	$	(260.6	)
Net change in period		0.7			(85.2	)		6.4			(78.1	)
Balance as of June 30, 2015	$	(43.5	)	$	(301.5	)	$	6.3		$	(338.7	)

The foreign currency translation during the six-month period ended June 30, 2015 primarily relates to the net impact of changes in the value of the local currencies relative to the U.S. dollar for our operations in Australia, Canada, the Caribbean, India, New Zealand and the U.K.

During the six-month periods ended June 30, 2015 and 2014, $3.2 million and $1.2 million, respectively, of expense related to the pension liability was reclassified from accumulated other comprehensive earnings (loss) to compensation expense in the statement of earnings. During the six-month periods ended June 30, 2015 and 2014, $0.1 million of income and $0.3 million of expense, respectively, related to the fair value of derivative investments, was reclassified from accumulated other comprehensive earnings (loss) to the statement of earnings. During the six-month periods ended June 30, 2015 and 2014, no amounts related to foreign currency translation were reclassified from accumulated other comprehensive earnings (loss) to the statement of earnings.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting Information by Segment

Financial information relating to our segments for the three-month and six-month periods ended June 30, 2015 and 2014 is as follows (in millions):

	Three-month period						Six-month period
	ended June 30,						ended June 30,
	2015			2014			2015			2014
Brokerage
Total revenues	$	885.6		$	737.9		$	1,636.7		$	1,302.3
Earnings before income taxes	$	156.6		$	136.2		$	217.6		$	186.5
Identifiable assets at June 30, 2015 and 2014							$	8,894.1		$	8,017.6
Risk Management
Total revenues	$	189.4		$	172.8		$	366.6		$	337.0
Earnings before income taxes	$	26.7		$	21.2		$	50.3		$	39.9
Identifiable assets at June 30, 2015 and 2014							$	623.3		$	611.0
Corporate
Total revenues	$	296.4		$	268.6		$	599.4		$	455.0
Loss before income taxes	$	(54.8	)	$	(45.5	)	$	(108.5	)	$	(59.8	)
Identifiable assets at June 30, 2015 and 2014							$	1,198.7		$	1,390.7

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Effect of New Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Changes and Error Corrections [Abstract]

Revenue Recognition

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (which we refer to as the FASB) issued new accounting guidance on revenue from contracts with customers, which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principal of the new guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. On July 9, 2015, the FASB decided to delay the effective date of the new revenue standard by one year. Reporting entities may choose to adopt the standard as of the original effective date. The FASB decided, based on its outreach to various stakeholders and the forthcoming amendments to the new revenue standard, that a deferral is necessary to provide adequate time to effectively implement the new revenue standard. This new guidance was originally effective for the first quarter of 2017 and early adoption is not permitted. With the one year deferral date, this new guidance is now effective for the first quarter of 2018, but it can be adopted earlier in first quarter of 2017. The guidance permits two methods of transition upon adoption; full retrospective and modified retrospective. Under the full retrospective method, prior periods would be restated under the new revenue standard, providing a comparable view across all periods presented. Under the modified retrospective method, prior periods would not be restated. Rather, revenues and other disclosures for pre-2017/2018 periods would be provided in the notes to the financial statements as previously reported under the current revenue standard. Management is currently reviewing the guidance, and the impact from its adoption on our consolidated financial statements cannot be determined at this time.

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Investments - Other Investments - Additional Information (Detail) $ in Millions	Jun. 30, 2015 USD ($) Investment Venture	Dec. 31, 2014 USD ($)
Schedule of Equity Method Investments [Line Items]
Assets	$ 83.3	$ 82.0
Non controlling interest certified low-income housing developments | Investment	12
Non controlling interest in real estate entities | Investment	2
Carrying value of investments in real estate entities	$ 0.0
Other Investments [Member]
Schedule of Equity Method Investments [Line Items]
Assets	2.5	$ 3.2
Other Investments [Member] | Four Venture Capital Funds [Member]
Schedule of Equity Method Investments [Line Items]
Assets	$ 2.0
Non controlling interest in venture capital funds number | Venture	4
Other Investments [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Schedule of Equity Method Investments [Line Items]
Assets	$ 60.0
Debt	20.0
Other Investments [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Twelve Certified Low-Income Housing Developments [Member]
Schedule of Equity Method Investments [Line Items]
Carrying value of investments	$ 0.0
Investment Management Company [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest held	20.00%
Cost of acquiring equity interest	$ 0.5

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Consolidated Statement of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) shares in Millions, $ in Millions	Total	Common Stock [Member]	Capital in Excess of Par Value [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Earnings (Loss) [Member]	Noncontrolling Interests [Member]
Beginning Balance at Dec. 31, 2014	$ 3,305.1	$ 164.6	$ 2,649.4	$ 676.0	$ (260.6)	$ 75.7
Beginning Balance (in shares) at Dec. 31, 2014		164.6
Net earnings	180.0			161.2		18.8
Change in pension liability, net of taxes of $1.1 million	0.7				0.7
Foreign currency translation	(109.4)				(85.2)	(24.2)
Change in fair value of derivative instruments, net of taxes of $4.2 million	6.4				6.4
Compensation expense related to stock option plan grants	5.1		5.1
Tax impact from issuance of common stock	8.8		8.8
Common stock issued in:
Thirty-four purchase transactions	255.3	$ 5.3	250.0
Thirty-four purchase transactions (in shares)		5.3
Stock option plans	$ 33.4	$ 1.2	32.2
Stock option plans (in shares)	1.2	1.2
Employee stock purchase plan	$ 5.6	$ 0.1	5.5
Employee stock purchase plan (in shares)		0.1
Deferred compensation and restricted stock	(5.0)	$ 0.2	(5.2)
Deferred compensation and restricted stock (in shares)		0.2
Other compensation expense	2.7					2.7
Stock issuance under dribble-out program	149.2	$ 3.1	146.1
Stock issuance under dribble-out program (in shares)		3.1
Cash dividends declared on common stock	(126.4)			(126.4)
Ending Balance at Jun. 30, 2015	$ 3,711.5	$ 174.5	$ 3,091.9	$ 710.8	$ (338.7)	$ 73.0
Ending Balance (in shares) at Jun. 30, 2015		174.5

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Consolidated Statement of Comprehensive Earnings (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net earnings	$ 147.6	$ 113.7	$ 180.0	$ 171.5
Change in pension liability, net of taxes		0.7	0.7	0.9
Foreign currency translation	49.6	45.7	(85.2)	54.5
Change in fair value of derivative investments, net of taxes	6.4	0.9	6.4	1.4
Comprehensive earnings	203.6	161.0	101.9	228.3
Comprehensive earnings (loss) attributable to noncontrolling interests	(1.4)	(1.5)	(5.4)	(1.3)
Comprehensive earnings attributable to controlling interests	$ 205.0	$ 162.5	$ 107.3	$ 229.6

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Deferred Compensation

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Deferred Compensation

9. Deferred Compensation

We have a Deferred Equity Participation Plan (which we refer to as the Age 62 Plan), which is a non-qualified plan that generally provides for distributions to certain of our key executives when they reach age 62 (or the one-year anniversary of the date of the grant for participants over the age of 61 as of the grant date) or upon or after their actual retirement. Under the provisions of the Age 62 Plan, we typically contribute cash in an amount approved by the compensation committee to a rabbi trust on behalf of the executives participating in the Age 62 Plan, and instruct the trustee to acquire a specified number of shares of our common stock on the open market or in privately negotiated transactions based on participant elections. Distributions under the Age 62 Plan may not normally be made until the participant reaches age 62 (or the one-year anniversary of the date of the grant for participants over the age of 61 as of the grant date) and are subject to forfeiture in the event of voluntary termination of employment prior to then. All contributions to the plan deemed to be invested in shares of our common stock are distributed in the form of our common stock and all other distributions are paid in cash.

Our common stock that is issued to or purchased by the rabbi trust as a contribution under the Age 62 Plan is valued at historical cost, which equals its fair market value at the date of grant or date of purchase. When common stock is issued, we record an unearned deferred compensation obligation as a reduction of capital in excess of par value in the accompanying consolidated balance sheet, which is amortized to compensation expense ratably over the vesting period of the participants. Future changes in the fair market value of our common stock owed to the participants do not have any impact on the amounts recorded in our consolidated financial statements.

In the first quarter of each of 2015 and 2014, the compensation committee approved $8.9 million and $9.2 million, respectively, of awards in the aggregate to certain key executives under the Age 62 Plan that were contributed to the rabbi trust in first quarter 2015 and 2014, respectively. We contributed cash to the rabbi trust and instructed the trustee to acquire a specified number of shares of our common stock on the open market to fund these 2015 and 2014 awards. During the three-month periods ended June 30, 2015 and 2014, we charged $2.1 million and $1.8 million, respectively, to compensation expense related to these awards. During the six-month periods ended June 30, 2015 and 2014, we charged $3.1 million and $3.2 million, respectively, to compensation expense related to these awards.

At June 30, 2015 and December 31, 2014, we recorded $38.1 million (related to 2.1 million shares) and $28.2 million (related to 1.9 million shares), respectively, of unearned deferred compensation as a reduction of capital in excess of par value in the accompanying consolidated balance sheet. The total intrinsic value of our unvested equity based awards under the plan at June 30, 2015 and December 31, 2014 was $99.4 million and $89.1 million, respectively. During the six-month period ended June 30, 2015, cash and equity awards with an aggregate fair value of $0.1 million were vested and distributed to executives under the Age 62 Plan.

We have a Deferred Cash Participation Plan (which we refer to as the DCPP), which is a non-qualified deferred compensation plan for certain key employees, other than executive officers, that generally provides for vesting and/or distributions no sooner than five years from the date of awards. Under the provisions of the DCPP, we typically contribute cash in an amount approved by compensation committee to the rabbi trust on behalf of the executives participating in the DCPP, and instruct the trustee to acquire a specified number of shares of our common stock on the open market or in privately negotiated transactions based on participant elections. In the first quarter of each of 2015 and 2014, the compensation committee approved $2.7 million and $2.9 million, respectively, of awards in the aggregate to certain key executives under the DCPP that were contributed to the rabbi trust in first quarter 2015 and 2014, respectively. During the three-month periods ended June 30, 2015 and 2014, we charged $0.2 million and $0.7 million, respectively, to compensation expense related to these awards. During the six-month periods ended June 30, 2015 and 2014, we charged $0.6 million and $1.5 million, respectively, to compensation expense related to these awards. There were no distributions from the DCPP during the six-month period ended June 30, 2015.

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Document and Entity Information - Jun. 30, 2015 - shares	Total
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Trading Symbol	AJG
Entity Registrant Name	GALLAGHER ARTHUR J & CO
Entity Central Index Key	0000354190
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	174,545,000

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Restricted Stock, Performance Share and Cash Awards

6 Months Ended

Jun. 30, 2015

Text Block [Abstract]

Restricted Stock, Performance Share and Cash Awards

10. Restricted Stock, Performance Share and Cash Awards

Restricted Stock Awards

As discussed in Note 8 to these unaudited consolidated financial statements, on May 13, 2014, our stockholders approved the LTIP, which replaced our previous stockholder-approved 2011 LTIP. The LTIP provides for the grant of a stock award either as restricted stock or as restricted stock units. In either case, the compensation committee may determine that the award will be subject to the attainment of performance measures over an established performance period. Stock awards and the related dividend equivalents are non-transferable and subject to forfeiture if the holder does not remain continuously employed with us during the applicable restriction period or, in the case of a performance-based award, if applicable performance measures are not attained. The compensation committee will determine all of the terms relating to the satisfaction of performance measures and the termination of a restriction period, or the forfeiture and cancellation of a restricted stock award upon a termination of employment, whether by reason of disability, retirement, death or any other reason. The compensation committee may grant unrestricted shares of common stock or units representing the right to receive shares of common stock to employees who have attained age 62.

The agreements awarding restricted stock units under the LTIP will specify whether such awards may be settled in shares of our common stock, cash or a combination of shares and cash and whether the holder will be entitled to receive dividend equivalents, on a current or deferred basis, with respect to such award. Prior to the settlement of a restricted stock unit, the holder of a restricted stock unit will have no rights as a stockholder of the company. The maximum number of shares available under the LTIP for restricted stock, restricted stock units and performance unit awards settled with stock (i.e., all awards other than stock options and stock appreciation rights) is 2.0 million. At June 30, 2015, 1.5 million shares were available for grant under the LTIP for such awards.

In the first quarter of each of 2015 and 2014, we granted 362,600 and 323,600 restricted stock units, respectively, to employees under the LTIP, with an aggregate fair value of $16.7 million and $15.2 million, respectively, at the date of grant. These 2015 and 2014 awards of restricted stock units vest as follows: 362,600 units granted in first quarter 2015 and 323,600 units granted in first quarter 2014, vest in full based on continued employment through March 11, 2019 and March 12, 2018, respectively. For certain of our executive officers age 55 or older, restricted stock units awarded in 2015 and 2014 are no longer subject to forfeiture upon such officers’ departure from the company after two years from the date of grant.

We account for restricted stock awards at historical cost, which equals its fair market value at the date of grant, which is amortized to compensation expense ratably over the vesting period of the participants. Future changes in the fair value of our common stock that is owed to the participants do not have any impact on the amounts recorded in our consolidated financial statements. During the three-month periods ended June 30, 2015 and 2014, we recognized $4.7 million and $3.9 million, respectively, to compensation expense related to restricted stock unit awards granted in 2006 through 2015. During the six-month periods ended June 30, 2015 and 2014, we recognized $7.5 million and $6.5 million, respectively, to compensation expense related to restricted stock unit awards granted in 2006 through 2015. The total intrinsic value of unvested restricted stock units at June 30, 2015 and 2014 was $66.5 million and $58.2 million, respectively. During the six-month periods ended June 30, 2015 and 2014, equity awards (including accrued dividends) with an aggregate fair value of $9.9 million and $9.5 million were vested and distributed to employees under this plan.

Performance Share Awards

On March 11, 2015 and March 12, 2014, pursuant to the LTIP, the compensation committee approved 53,900 and 48,800, respectively of provisional performance unit awards, with an aggregate fair value of $2.5 million and $2.3 million, respectively, for future grants to our officers. Each performance unit award was equivalent to the value of one share of our common stock on the date such provisional award was approved. These awards are subject to a one-year performance period based on our financial performance and a two-year vesting period. At the discretion of the compensation committee and determined based on our performance, the eligible officer will be granted a percentage of the provisional performance unit award that equates to the EBITAC growth achieved (as specified in the applicable grant agreement). At the end of the performance period, eligible participants will be granted a number of units based on achievement of the performance goal and subject to approval by the compensation committee. Granted units for the 2015 and 2014 provisional awards will fully vest based on continuous employment through January 1, 2018 and January 1, 2017, respectively, and will be settled in shares of our common stock on a one-for-one basis as soon as practicable in 2018 and 2017, respectively. For certain of our executive officers age 55 or older, awards granted in 2015 and 2014 are no longer subject to forfeiture upon such officers’ departure from the company after two years from the date of grant. If an eligible employee leaves us prior to the vesting date, the entire award will be forfeited.

Cash Awards

On March 11, 2015, pursuant to our Performance Unit Program (which we refer to as the Program), the compensation committee approved provisional cash awards of $14.6 million in the aggregate for future grants to our officers and key employees that are denominated in units (315,000 units in the aggregate), each of which was equivalent to the value of one share of our common stock on the date the provisional award was approved. The Program consists of a one-year performance period based on our financial performance and a two-year vesting period. At the discretion of the compensation committee and determined based on our performance, the eligible officer or key employee will be granted a percentage of the provisional cash award units that equates to the EBITAC growth achieved (as defined in the Program). At the end of the performance period, eligible participants will be granted a number of units based on achievement of the performance goal and subject to approval by the compensation committee. Granted units for the 2015 provisional award will fully vest based on continuous employment through January 1, 2018. For certain of our executive officers age 55 or older, awards granted under the Program in 2015 are no longer subject to forfeiture upon such officers’ departure from the company after two years from the date of the provisional award. The ultimate award value will be equal to the trailing twelve-month price of our common stock on December 31, 2017, multiplied by the number of units subject to the award, but limited to between 0.5 and 1.5 times the original value of the units determined as of the grant date. The fair value of the awarded units will be paid out in cash as soon as practicable in 2018. If an eligible employee leaves us prior to the vesting date, the entire award will be forfeited. We did not recognize any compensation expense during the three-month period ended June 30, 2015 related to the 2015 provisional award under the Program.

On March 12, 2014, pursuant to the Program, the compensation committee approved provisional cash awards of $10.8 million in the aggregate for future grant to our officers and key employees that are denominated in units (229,000 units in the aggregate), each of which was equivalent to the value of one share of our common stock on the date the provisional awards were approved. Terms of the 2014 provisional awards were similar to the terms of the 2015 provisional awards. Based on our performance for 2014, we granted 220,000 units under the Program in first quarter 2015 that will fully vest on January 1, 2017. During the three-month period ended June 30, 2015, we recognized $1.3 million to compensation expense related to these awards. During the six-month period ended June 30, 2015, we recognized $2.5 million to compensation expense related to these awards. We did not recognize any compensation expense during 2014 related to the 2014 awards.

On March 13, 2013, pursuant to the Program, the compensation committee approved provisional cash awards of $10.5 million in the aggregate for future grant to our officers and key employees that are denominated in units (269,000 units in the aggregate), each of which was equivalent to the value of one share of our common stock on the date the provisional awards were approved. Terms of the 2013 provisional awards were similar to the terms of the 2015 provisional awards. Based on our performance for 2013, we granted 263,000 units under the Program in first quarter 2014 that will fully vest on January 1, 2016. During the three-month periods ended June 30, 2015 and June 30, 2014, we recognized $1.6 million and $1.5 million, respectively, to compensation expense related to the 2013 awards. During the six-month periods ended June 30, 2015 and June 30, 2014, we recognized $3.0 million and $3.0 million, respectively, to compensation expense related to the 2013 awards.

On March 16, 2012, pursuant to the Program, the compensation committee approved provisional cash awards of $13.1 million in the aggregate for future grant to our officers and key employees that are denominated in units (368,000 units in the aggregate), each of which was equivalent to the value of one share of our common stock on the date the provisional awards were approved. Terms of the 2012 provisional awards were similar to the terms of the 2015 provisional awards. Based on our performance for 2012, we granted 365,000 units under the Program in first quarter 2013 that fully vested on January 1, 2015. During the three-month period ended June 30, 2014 we recognized $1.8 million of compensation expense related to the 2012 awards. During the six-month period ended June 30, 2014 we recognized $4.5 million of compensation expense related to the 2012 awards. We did not recognize any compensation expense during 2015 related to the 2012 awards.

During the six-month period ended June 30, 2015, cash awards related to the 2012 provisional award with an aggregate fair value of $15.8 million (0.3 million units in the aggregate) were vested and distributed to employees under the Program.

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Consolidated Balance Sheet - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Cash and cash equivalents	$ 321.7	$ 314.4
Restricted cash	1,443.8	1,367.6
Premiums and fees receivable	1,764.5	1,462.5
Other current assets	731.4	666.7
Total current assets	4,261.4	3,811.2
Fixed assets - net	198.2	195.4
Deferred income taxes	438.0	392.6
Other noncurrent assets	487.6	385.2
Goodwill - net	3,569.4	3,449.6
Amortizable intangible assets - net	1,761.5	1,776.0
Total assets	10,716.1	10,010.0
Premiums payable to insurance and reinsurance companies	2,901.1	2,623.3
Accrued compensation and other accrued liabilities	633.1	623.7
Unearned fees	63.8	66.1
Other current liabilities	60.8	61.7
Premium financing debt	91.6	127.9
Corporate related borrowings - current	155.0	140.0
Total current liabilities	3,905.4	3,642.7
Corporate related borrowings - noncurrent	2,125.0	2,125.0
Other noncurrent liabilities	974.2	937.2
Total liabilities	7,004.6	6,704.9
Stockholders' equity:
Common stock - issued and outstanding 174.5 shares in 2015 and 164.6 shares in 2014	174.5	164.6
Capital in excess of par value	3,091.9	2,649.4
Retained earnings	710.8	676.0
Accumulated other comprehensive loss	(338.7)	(260.6)
Stockholders' equity attributable to controlling interests	3,638.5	3,229.4
Stockholders' equity attributable to noncontrolling interests	73.0	75.7
Total stockholders' equity	3,711.5	3,305.1
Total liabilities and stockholders' equity	$ 10,716.1	$ 10,010.0

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Other Current Assets

6 Months Ended

Jun. 30, 2015

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

4. Other Current Assets

Major classes of other current assets consist of the following (in millions):

	June 30, 2015		December 31, 2014
Premium finance advances and loans	$	219.8	$	232.6
Accrued supplemental, direct bill and other receivables		193.7		156.3
Refined coal production related receivables		130.4		103.5
Deferred income taxes - current		106.7		102.2
Prepaid expenses		80.8		72.1
Total other current assets	$	731.4	$	666.7

The premium finance loans represent short-term loans which we make to many of our brokerage related clients and other non-brokerage clients to finance their premiums paid to insurance carriers. These premium finance loans are primarily generated by the Crombie/OAMPS operations which were acquired on June 16, 2014. Financing receivables are carried at amortized cost. Given that these receivables are collateralized, carry a fairly rapid delinquency period of only seven days post payment date, and that contractually the underlying insurance policies will be cancelled within one month of the payment due date in normal course, there historically has been a minimal risk of not receiving payment and therefore we do not maintain any significant allowance for losses against this balance.

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Business Combinations

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Business Combinations

3. Business Combinations

During the six-month period ended June 30, 2015, we acquired substantially all of the net assets of the following firms in exchange for our common stock and/or cash. These acquisitions have been accounted for using the acquisition method for recording business combinations (in millions except share data):

Name and Effective Date of Acquisition	Common Shares Issued		Common Share Value		Cash Paid		Accrued Liability		Escrow Deposited		Recorded Earnout Payable		Total Recorded Purchase Price		Maximum Potential Earnout Payable
	(000s)
e3 Financial, Inc. (EFI) January 1, 2015		2	$	—	$	9.1	$	—	$	0.1	$	0.7	$	9.9	$	7.0
Aequus Trade Credit LLC January 31, 2015		11		0.3		1.5		—		0.2		1.3		3.3		1.9
Cohen & Lord Insurance Brokers Limited February 1, 2015		77		3.6		2.1		—		—		—		5.7		—
Cohn Financial Group, LLC (CFG) February 1, 2015		407		19.0		—		—		0.3		4.2		23.5		14.0
Excel Insurance Services, Inc. February 1, 2015		52		1.5		7.3		—		1.0		—		9.8		—
Metcom Excess February 1, 2015		49		1.8		2.3		—		0.5		—		4.6		—
NationAir Aviation Insurance (NAI) February 1, 2015		288		12.3		—		—		1.3		—		13.6		—
Evolution Group of Companies February 6, 2015		101		4.7		0.9		0.5		0.4		2.9		9.4		3.1
Burns-Fazzi, Brock & Associates, LLC (BFB) April 1, 2015		709		33.4		—		—		1.0		7.4		41.8		27.0
Madison Risk & Insurance Services, Inc. (MRI) April 1, 2015		232		10.3		3.7		—		1.0		1.4		16.4		4.0
Integrated Healthcare Strategies, LLC (IHS) May 1, 2015		990		41.4		0.5		3.1		6.2		4.5		55.7		20.8
James R. Weir Insurance Agency, Inc. May 1, 2015		56		2.5		—		—		0.3		0.8		3.6		1.1
McDowall Associates Human Resources Consultants Ltd. May 1, 2015		34		1.5		0.6		0.6		0.1		0.5		3.3		2.5
Vital Benefits, Inc. May 1, 2015		118		5.6		—		—		0.1		—		5.7		—
Monument, LLC (ML) June 1, 2015		254		10.8		4.0		—		1.7		2.4		18.9		5.0
Solid Benefit Guidance Limited Liability Company (SBG) June 1, 2015		932		44.0		0.3		2.5		1.0		11.6		59.4		32.5
Eight other acquisitions completed in 2015		106		5.0		13.1		0.4		1.0		3.2		22.7		30.4
		4,418	$	197.7	$	45.4	$	7.1	$	16.2	$	40.9	$	307.3	$	149.3

On June 15, 2015, we signed a definitive agreement to acquire substantially all the assets of William Gallagher Associates Insurance Brokers, Inc. (which we refer to as WGA) headquartered in Boston, Massachusetts for approximately $150.0 million of consideration in a combination of cash and our common stock. WGA has annualized revenues of approximately $50.0 million. The transaction was subject to customary closing conditions and closed on July 31, 2015. WGA has approximately 200 employees and operations in Boston; Atlanta; New York City; Columbia, Maryland; Hartford, Connecticut and Princeton, New Jersey. Since the closing date of the WGA acquisition was July 31, 2015 (the date of this filing), it is not practical at this time for us to disclose the same type of information for this acquisition in the amount of detail provided in the tables above.

Common shares issued in connection with acquisitions are valued at closing market prices as of the effective date of the applicable acquisition. We record escrow deposits that are returned to us as a result of adjustments to net assets acquired as reductions of goodwill when the escrows are settled. The maximum potential earnout payables disclosed in the foregoing table represent the maximum amount of additional consideration that could be paid pursuant to the terms of the purchase agreement for the applicable acquisition. The amounts recorded as earnout payables, which are primarily based upon the estimated future operating results of the acquired entities over a two- to three-year period subsequent to the acquisition date, are measured at fair value as of the acquisition date and are included on that basis in the recorded purchase price consideration in the foregoing table. We will record subsequent changes in these estimated earnout obligations, including the accretion of discount, in our consolidated statement of earnings when incurred.

The fair value of these earnout obligations is based on the present value of the expected future payments to be made to the sellers of the acquired entities in accordance with the provisions outlined in the respective purchase agreements, which is a Level 3 fair value measurement. In determining fair value, we estimated the acquired entity’s future performance using financial projections developed by management for the acquired entity and market participant assumptions that were derived for revenue growth and/or profitability. Revenue growth rates generally ranged from 6.5% to 12.0% for our 2015 acquisitions. We estimated future payments using the earnout formula and performance targets specified in each purchase agreement and these financial projections. We then discounted these payments to present value using a risk-adjusted rate that takes into consideration market-based rates of return that reflect the ability of the acquired entity to achieve the targets. These discount rates approximated 8.5% for all of our 2015 acquisitions. Changes in financial projections, market participant assumptions for revenue growth and/or profitability, or the risk-adjusted discount rate, would result in a change in the fair value of recorded earnout obligations.

During the three-month periods ended June 30, 2015 and 2014, we recognized $4.3 million and $3.4 million, respectively, of expense in our consolidated statement of earnings related to the accretion of the discount recorded for earnout obligations in connection with our acquisitions. During the six-month periods ended June 30, 2015 and 2014, we recognized $8.5 million and $6.7 million, respectively, of expense in our consolidated statement of earnings related to the accretion of the discount recorded for earnout obligations in connection with our acquisitions. In addition, during the three-month periods ended June 30, 2015 and 2014, we recognized $1.3 million and $3.6 million of expense, respectively, related to net adjustments in the estimated fair value of earnout obligations in connection with revised projections of future performance for 24 and 18 acquisitions, respectively. During the six-month periods ended June 30, 2015 and 2014, we recognized $7.7 million and $5.4 million of expense, respectively, related to net adjustments in the estimated fair value of earnout obligations in connection with revised projections of future performance for 43 and 35 acquisitions, respectively. The aggregate amount of maximum earnout obligations related to acquisitions was $596.6 million as of June 30, 2015, of which $217.4 million was recorded in our consolidated balance sheet as of June 30, 2015, based on the estimated fair value of the expected future payments to be made.

The following is a summary of the estimated fair values of the net assets acquired at the date of each acquisition made in the six-month period ended June 30, 2015 (in millions):

	EFI		CFG		NAI		BFB		MRI		IHS		ML		SBG		Sixteen Other Acquisitions		Total
Cash	$	—	$	0.1	$	—	$	0.1	$	0.1	$	—	$	—	$	—	$	3.0	$	3.3
Other current assets		—		—		4.7		0.3		0.6		8.3		0.2		1.4		18.4		33.9
Fixed assets		—		—		—		—		—		1.1		—		—		5.5		6.6
Noncurrent assets		—		—		—		—		—		—		—		—		0.6		0.6
Goodwill		6.1		11.3		9.8		18.5		6.3		24.8		5.7		30.9		30.0		143.4
Expiration lists		3.7		12.0		5.2		23.0		9.9		24.8		13.0		27.7		31.1		150.4
Non-compete agreements		0.1		0.1		0.2		0.1		0.1		0.1		—		0.1		0.8		1.6
Total assets acquired		9.9		23.5		19.9		42.0		17.0		59.1		18.9		60.1		89.4		339.8
Current liabilities		—		—		4.2		0.2		0.6		3.4		—		0.7		16.3		25.4
Noncurrent liabilities		—		—		2.1		—		—		—		—		—		5.0		7.1
Total liabilities assumed		—		—		6.3		0.2		0.6		3.4		—		0.7		21.3		32.5
Total net assets acquired	$	9.9	$	23.5	$	13.6	$	41.8	$	16.4	$	55.7	$	18.9	$	59.4	$	68.1	$	307.3

Among other benefits, these acquisitions allow us to expand into desirable geographic locations, further extend our presence in the retail and wholesale insurance brokerage services and risk management industries and increase the volume of general services currently provided. The excess of the purchase price over the estimated fair value of the tangible net assets acquired at the acquisition date was allocated to goodwill, expiration lists and non-compete agreements in the amounts of $143.4 million, $150.4 million and $1.6 million, respectively, within the brokerage and risk management segments.

Provisional estimates of fair value are established at the time of each acquisition and are subsequently reviewed within the first year of operations subsequent to the acquisition date to determine the necessity for adjustments. The fair value of the tangible assets and liabilities for each applicable acquisition at the acquisition date approximated their carrying values. The fair value of expiration lists was established using the excess earnings method, which is an income approach based on estimated financial projections developed by management for each acquired entity using market participant assumptions. Revenue growth and attrition rates generally ranged from 2.0% to 3.0% and 5.0% to 13.0% for our 2014 and 2015 acquisitions for which valuations were performed in 2015. We estimate the fair value as the present value of the benefits anticipated from ownership of the subject customer list in excess of returns required on the investment in contributory assets necessary to realize those benefits. The rate used to discount the net benefits was based on a risk-adjusted rate that takes into consideration market-based rates of return and reflects the risk of the asset relative to the acquired business. These discount rates generally ranged from 11.0% to 13.0% for our 2014 and 2015 acquisitions for which valuations were performed in 2015. The fair value of non-compete agreements was established using the profit differential method, which is an income approach based on estimated financial projections developed by management for the acquired company using market participant assumptions and various non-compete scenarios.

Expiration lists, non-compete agreements and trade names related to our acquisitions are amortized using the straight-line method over their estimated useful lives (three to fifteen years for expiration lists, three to five years for non-compete agreements and five to fifteen years for trade names), while goodwill is not subject to amortization. We use the straight-line method to amortize these intangible assets because the pattern of their economic benefits cannot be reasonably determined with any certainty. We review all of our intangible assets for impairment periodically (at least annually) and whenever events or changes in business circumstances indicate that the carrying value of the assets may not be recoverable. In reviewing intangible assets, if the fair value were less than the carrying amount of the respective (or underlying) asset, an indicator of impairment would exist and further analysis would be required to determine whether or not a loss would need to be charged against current period earnings as a component of amortization expense. Based on the results of impairment reviews during the six-month period ended June 30, 2015, we wrote off $0.5 million of amortizable intangible assets related to the brokerage segment. Based on the results of impairment reviews during the six-month period ended June 30, 2014, we wrote off $0.6 million of amortizable intangible assets related to the brokerage segment.

Of the $150.4 million of expiration lists and $1.6 million of non-compete agreements related to our acquisitions made during the six-month period ended June 30, 2015, $18.2 million and $0.6 million, respectively, is not expected to be deductible for income tax purposes. Accordingly, we recorded a deferred tax liability of $5.3 million, and a corresponding amount of goodwill, in the six-month period ended June 30, 2015 related to nondeductible amortizable intangible assets.

Our consolidated financial statements for the six-month period ended June 30, 2015 include the operations of the acquired entities from their respective acquisition dates. The following is a summary of the unaudited pro forma historical results, as if these entities had been acquired at January 1, 2014 (in millions, except per share data):

	Three-month period ended June 30,				Six-month period ended June 30,
	2015		2014		2015		2014
Total revenues	$	1,379.3	$	1,209.5	$	2,637.6	$	2,155.6
Net earnings attributable to noncontrolling interests		139.4		110.7		162.7		162.3
Basic net earnings per share		0.81		0.70		0.95		1.09
Diluted net earnings per share		0.80		0.69		0.95		1.08

The unaudited pro forma results above have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had these acquisitions occurred at January 1, 2014, nor are they necessarily indicative of future operating results. Annualized revenues of entities acquired during the six-month period ended June 30, 2015 totaled approximately $123.5 million. For the six-month period ended June 30, 2015, total revenues and net earnings recorded in our unaudited consolidated statement of earnings related to our acquisitions made during the six-month period ended June 30, 2015 in the aggregate, were $26.9 million and $2.0 million, respectively.

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Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

15. Segment Information

We have three reportable segments: brokerage, risk management and corporate.

The brokerage segment is primarily comprised of our retail and wholesale insurance brokerage operations. The brokerage segment generates revenues through commissions paid by insurance underwriters and through fees charged to our clients. Our brokers, agents and administrators act as intermediaries between insurers and their customers and we do not assume underwriting risks.

The risk management segment provides contract claim settlement and administration services for enterprises that choose to self-insure some or all of their property/casualty coverages and for insurance companies that choose to outsource some or all of their property/casualty claims departments. These operations also provide claims management, loss control consulting and insurance property appraisal services. Revenues are principally generated on a negotiated per-claim or per-service fee basis.

The corporate segment manages our clean energy and other investments. This segment also holds all of our corporate debt.

Allocations of investment income and certain expenses are based on reasonable assumptions and estimates primarily using revenue, headcount and other information. We allocate the provision for income taxes to the brokerage and risk management segments using the local country statutory rates. Reported operating results by segment would change if different methods were applied. See Note 1 to these unaudited consolidated financial statements for a discussion of a reclassification of amounts between the brokerage and risk management segments.

Financial information relating to our segments for the three-month and six-month periods ended June 30, 2015 and 2014 is as follows (in millions):

	Three-month period						Six-month period
	ended June 30,						ended June 30,
	2015			2014			2015			2014
Brokerage
Total revenues	$	885.6		$	737.9		$	1,636.7		$	1,302.3
Earnings before income taxes	$	156.6		$	136.2		$	217.6		$	186.5
Identifiable assets at June 30, 2015 and 2014							$	8,894.1		$	8,017.6
Risk Management
Total revenues	$	189.4		$	172.8		$	366.6		$	337.0
Earnings before income taxes	$	26.7		$	21.2		$	50.3		$	39.9
Identifiable assets at June 30, 2015 and 2014							$	623.3		$	611.0
Corporate
Total revenues	$	296.4		$	268.6		$	599.4		$	455.0
Loss before income taxes	$	(54.8	)	$	(45.5	)	$	(108.5	)	$	(59.8	)
Identifiable assets at June 30, 2015 and 2014							$	1,198.7		$	1,390.7

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Retirement Plans

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Retirement Plans

11. Retirement Plans

We have a noncontributory defined benefit pension plan that, prior to July 1, 2005, covered substantially all of our domestic employees who had attained a specified age and one year of employment. Benefits under the plan were based on years of service and salary history. In 2005, we amended our defined benefit pension plan to freeze the accrual of future benefits for all U.S. employees, effective on July 1, 2005. In the table below, the service cost component represents plan administration costs that are incurred directly by the plan.

The components of the net periodic pension benefit cost for the plan consists of the following (in millions):

	Three-month period ended June 30,						Six-month period ended June 30,
	2015			2014			2015			2014
Service cost	$	0.4		$	0.1		$	0.5		$	0.2
Interest cost on benefit obligation		2.8			3.2			5.4			6.4
Expected return on plan assets		(3.8	)		(4.7	)		(7.7	)		(9.4	)
Amortization of net actuarial loss		1.6			0.6			3.2			1.2
Net periodic benefit cost (earnings)	$	1.0		$	(0.8	)	$	1.4		$	(1.6	)

We are not required under the IRC to make any minimum contributions to the plan for the 2015 plan year nor were we required to make any minimum contributions to the plan for the 2014 plan year. This level of required funding is based on the plan being frozen and the aggregate amount of our historical funding. We did not make any discretionary contributions to the plan during the six-month periods ended June 30, 2015 and 2014.

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Earnings Per Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share

7. Earnings Per Share

The following table sets forth the computation of basic and diluted net earnings per share (in millions, except per share data):

	Three-month period ended June 30,				Six-month period ended June 30,
	2015		2014		2015		2014
Net earnings attributable to controlling interests	$	139.3	$	109.0	$	161.2	$	158.3
Weighted average number of common shares outstanding		170.6		154.3		168.1		144.2
Dilutive effect of stock options using the treasury stock method		1.1		1.4		1.2		1.6
Weighted average number of common and common equivalent shares outstanding		171.7		155.7		169.3		145.8
Basic net earnings per share	$	0.82	$	0.71	$	0.96	$	1.10
Diluted net earnings per share	$	0.81	$	0.70	$	0.95	$	1.09

Options to purchase 3.9 million and 1.9 million shares of common stock were outstanding at June 30, 2015 and 2014, respectively, but were not included in the computation of the dilutive effect of stock options for the three-month periods then ended. Options to purchase 3.1 million and 1.2 million shares of common stock were outstanding at June 30, 2015 and 2014, respectively, but were not included in the computation of the dilutive effect of stock options for the six-monthperiods then ended. These stock options were excluded from the computation because the options’ exercise prices were greater than the average market price of our common shares during the respective period, and therefore, would be anti-dilutive to earnings per share under the treasury stock method.

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Deferred Compensation - Additional information (Detail) - USD ($) shares in Millions	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Investments And Employee Deferred Compensation Plan [Line Items]
Deferred Equity Participation Plan, distributions to key executives, age					Age 62 (or the one-year anniversary of the date of the grant for participants over the age of 61 as of the grant date) or upon or after their actual retirement
Age 62 Plan [Member]
Investments And Employee Deferred Compensation Plan [Line Items]
Awards approved by committee, value		$ 8,900,000		$ 9,200,000
Charge to compensation expenses related to awards	$ 2,100,000		$ 1,800,000		$ 3,100,000	$ 3,200,000
Unearned deferred compensation, value					$ 38,100,000		$ 28,200,000
Unearned deferred compensation, shares					2.1		1.9
Total intrinsic value of unvested equity based awards					$ 99,400,000		$ 89,100,000
Cash and equity awards with aggregate fair value vested and distributed to participants					100,000
Deferred Cash Participation Plan (DCPP) [Member]
Investments And Employee Deferred Compensation Plan [Line Items]
Awards approved by committee, value		$ 2,700,000		$ 2,900,000
Charge to compensation expenses related to awards	$ 200,000		$ 700,000		600,000	$ 1,500,000
Cash and equity awards with aggregate fair value vested and distributed to participants					$ 0

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Intangible Assets

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

5. Intangible Assets

The carrying amount of goodwill at June 30, 2015 and December 31, 2014 allocated by domestic and foreign operations is as follows (in millions):

	Brokerage		Risk Management		Corporate		Total
At June 30, 2015
United States	$	1,783.8	$	23.5	$	—	$	1,807.3
United Kingdom		825.0		3.8		—		828.8
Canada		316.3		—		—		316.3
Australia		372.3		—		—		372.3
Other foreign, principally New Zealand		244.4		0.3		—		244.7
Total goodwill - net	$	3,541.8	$	27.6	$	—	$	3,569.4
At December 31, 2014
United States	$	1,652.6	$	20.2	$	—	$	1,672.8
United Kingdom		818.7		1.9		—		820.6
Canada		318.5		—		—		318.5
Australia		336.8		—		—		336.8
Other foreign, principally New Zealand		300.9		—		—		300.9
Total goodwill - net	$	3,427.5	$	22.1	$	—	$	3,449.6

The changes in the carrying amount of goodwill for the six-month period ended June 30, 2015 are as follows (in millions):

	Brokerage			Risk Management		Corporate		Total
Balance as of December 31, 2014	$	3,427.5		$	22.1	$	—	$	3,449.6
Goodwill acquired during the period		141.3			2.1		—		143.4
Goodwill related to transfer of operations between segments		(3.4	)		3.4		—		—
Goodwill adjustments due to appraisals and other acquisition adjustments		32.6			—		—		32.6
Foreign currency translation adjustments during the period		(56.2	)		—		—		(56.2	)
Balance as of June 30, 2015	$	3,541.8		$	27.6	$	—	$	3,569.4

Major classes of amortizable intangible assets at June 30, 2015 and December 31, 2014 consist of the following (in millions):

	June 30, 2015			December 31, 2014
Expiration lists	$	2,560.1		$	2,461.9
Accumulated amortization - expiration lists		(823.3	)		(719.3	)
		1,736.8			1,742.6
Non-compete agreements		42.7			43.2
Accumulated amortization - non-compete agreements		(32.5	)		(29.5	)
		10.2			13.7
Trade names		27.2			29.7
Accumulated amortization - trade names		(12.7	)		(10.0	)
		14.5			19.7
Net amortizable assets	$	1,761.5		$	1,776.0

Estimated aggregate amortization expense for each of the next five years is as follows:

2015 (remaining six months)	$	114.9
2016		224.2
2017		213.6
2018		199.6
2019		186.3
Total	$	938.6

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Credit and Other Debt Agreements

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Credit and Other Debt Agreements

6. Credit and Other Debt Agreements

The following is a summary of our corporate and other debt (in millions):

	June 30,		December 31,
	2015		2014
Note Purchase Agreements:
Semi-annual payments of interest, fixed rate of 6.44%, balloon due 2017	$	300.0	$	300.0
Semi-annual payments of interest, fixed rate of 5.85%, $50 million due in 2016, 2018 and 2019		150.0		150.0
Semi-annual payments of interest, fixed rate of 2.80%, balloon due 2018		50.0		50.0
Semi-annual payments of interest, fixed rate of 3.20%, balloon due 2019		50.0		50.0
Semi-annual payments of interest, fixed rate of 3.99%, balloon due 2020		50.0		50.0
Semi-annual payments of interest, fixed rate of 3.48%, balloon due 2020		50.0		50.0
Semi-annual payments of interest, fixed rate of 5.18%, balloon due 2021		75.0		75.0
Semi-annual payments of interest, fixed rate of 3.69%, balloon due 2022		200.0		200.0
Semi-annual payments of interest, fixed rate of 5.49%, balloon due 2023		50.0		50.0
Semi-annual payments of interest, fixed rate of 4.13%, balloon due 2023		200.0		200.0
Semi-annual payments of interest, fixed rate of 4.58%, balloon due 2024		325.0		325.0
Semi-annual payments of interest, fixed rate of 4.31%, balloon due 2025		200.0		200.0
Semi-annual payments of interest, fixed rate of 4.73%, balloon due 2026		175.0		175.0
Semi-annual payments of interest, fixed rate of 4.36%, balloon due 2026		150.0		150.0
Semi-annual payments of interest, fixed rate of 4.98%, balloon due 2029		100.0		100.0
Total Note Purchase Agreements		2,125.0		2,125.0
Credit Agreement:
Periodic payments of interest and principal, prime or LIBOR plus up to 1.45%, expires September 19, 2018		155.0		140.0
Premium Financing Debt Facility - expires May 18, 2017:
Periodic payments of interest and principal, Interbank rates plus 1.05% for Facility B; plus 0.55% for Facilities C and D
Facility B
AUD denominated tranche		61.8		95.0
NZD denominated tranche		8.6		17.8
Facility C and D
AUD denominated tranche		14.3		7.7
NZD denominated tranche		6.9		7.4
Total Premium Financing Debt Facility		91.6		127.9
Total corporate and other debt	$	2,371.6	$	2,392.9

Note Purchase Agreements - We are a party to an amended and restated note purchase agreement dated December 19, 2007, with certain accredited institutional investors, pursuant to which we issued and sold $300.0 million in aggregate principal amount of our 6.44% Senior Notes, Series B, due August 3, 2017, in a private placement. These notes require semi-annual payments of interest that are due in February and August of each year.

We are a party to a note purchase agreement dated November 30, 2009, with certain accredited institutional investors, pursuant to which we issued and sold $150.0 million in aggregate principal amount of our 5.85% Senior Notes, Series C, due in three equal installments on November 30, 2016, November 30, 2018 and November 30, 2019, in a private placement. These notes require semi-annual payments of interest that are due in May and November of each year.

We are a party to a note purchase agreement dated February 10, 2011, with certain accredited institutional investors, pursuant to which we issued and sold $75.0 million in aggregate principal amount of our 5.18% Senior Notes, Series D, due February 10, 2021 and $50.0 million in aggregate principal amount of our 5.49% Senior Notes, Series E, due February 10, 2023, in a private placement. These notes require semi-annual payments of interest that are due in February and August of each year.

We are a party to a note purchase agreement dated July 10, 2012, with certain accredited institutional investors, pursuant to which we issued and sold $50.0 million in aggregate principal amount of our 3.99% Senior Notes, Series F, due July 10, 2020, in a private placement. These notes require semi-annual payments of interest that are due in January and July of each year.

We are a party to a note purchase agreement dated June 14, 2013, with certain accredited institutional investors, pursuant to which we issued and sold $200.0 million in aggregate principal amount of our 3.69% Senior Notes, Series G, due June 14, 2022, in a private placement. These notes require semi-annual payments of interest that are due in June and December of each year.

We are a party to a note purchase agreement dated December 20, 2013, with certain accredited institutional investors, pursuant to which we issued and sold $325.0 million in aggregate principal amount of our 4.58% Senior Notes, Series H, due February 27, 2024, $175.0 million in aggregate principal amount of our 4.73% Senior Notes, Series I, due February 27, 2026 and $100.0 million in aggregate principal amount of our 4.98% Senior Notes, Series J, due February 27, 2029. These notes require semi-annual payments of interest that are due in February and August of each year. The funding of this note purchase agreement occurred on February 27, 2014. We incurred approximately $1.4 million of debt acquisition costs that was capitalized and will be amortized on a pro rata basis over the life of the debt.

We are a party to a note purchase agreement dated June 24, 2014, with certain accredited institutional investors, pursuant to which we issued and sold $50.0 million in aggregate principal amount of our 2.80% Senior Notes, Series K, due June 24, 2018, $50.0 million in aggregate principal amount of our 3.20% Senior Notes, Series L, due June 24, 2019, $50.0 million in aggregate principal amount of our 3.48% Senior Notes, Series M, due June 24, 2020, $200.0 million in aggregate principal amount of our 4.13% Senior Notes, Series N, due June 24, 2023, $200.0 million in aggregate principal amount of our 4.31% Senior Notes, Series O, due June 24, 2025 and $150.0 million in aggregate principal amount of our 4.36% Senior Notes, Series P, due June 24, 2026. These notes require semi-annual payments of interest that are due in June and December of each year. We incurred approximately $2.6 million of debt acquisition costs that was capitalized and will be amortized on a pro rata basis over the life of the debt.

Under the terms of the note purchase agreements described above, we may redeem the notes at any time, in whole or in part, at 100% of the principal amount of such notes being redeemed, together with accrued and unpaid interest and a “make-whole amount.” The “make-whole amount” is derived from a net present value computation of the remaining scheduled payments of principal and interest using a discount rate based on U.S. Treasury yields plus 0.5% and is designed to compensate the purchasers of the notes for their investment risk in the event prevailing interest rates at the time of prepayment are less favorable than the interest rates under the notes. We do not currently intend to prepay any of the notes.

The note purchase agreements described above contain customary provisions for transactions of this type, including representations and warranties regarding us and our subsidiaries and various financial covenants, including covenants that require us to maintain specified financial ratios. We were in compliance with these covenants as of June 30, 2015. The note purchase agreements also provide customary events of default, generally with corresponding grace periods, including, without limitation, payment defaults with respect to the notes, covenant defaults, cross-defaults to other agreements evidencing our or our subsidiaries’ indebtedness, certain judgments against us or our subsidiaries and events of bankruptcy involving us or our material subsidiaries.

The notes issued under the note purchase agreements are senior unsecured obligations of ours and rank equal in right of payment with our Credit Agreement discussed below.

Credit Agreement - On September 19, 2013, we entered into a $600.0 million unsecured multicurrency credit agreement (which we refer to as the Credit Agreement), which expires on September 19, 2018, with a group of fifteen financial institutions. The Credit Agreement provides for a revolving credit commitment of up to $600.0 million, of which up to $75.0 million may be used for issuances of standby or commercial letters of credit and up to $50.0 million may be used for the making of swing loans, as defined in the Credit Agreement. We may from time to time request, subject to certain conditions, an increase in the revolving credit commitment up to a maximum aggregate revolving credit commitment of $850.0 million.

The Credit Agreement provides that we may elect that each borrowing in U.S. dollars be either base rate loans or Eurocurrency loans, as defined in the Credit Agreement. All loans denominated in currencies other than U.S. dollars will be Eurocurrency loans. Interest rates on base rate loans and outstanding drawings on letters of credit in U.S. dollars under the Credit Agreement are based on the base rate, as defined in the Credit Agreement. Interest rates on Eurocurrency loans or outstanding drawings on letters of credit in currencies other than U.S. dollars are based on an adjusted London Interbank Offered Rate (which we refer to as LIBOR), as defined in the Credit Agreement, plus a margin of 0.85%, 0.95%, 1.05%, 1.25% or 1.45%, depending on the financial leverage ratio we maintain. Interest rates on swing loans are based, at our election, on either the base rate, as defined in the Credit Agreement, or such alternate rate as may be quoted by the lead lender. The annual facility fee related to the Credit Agreement is 0.15%, 0.175%, 0.20%, 0.25% or 0.30% of the used and unused portions of the revolving credit commitment, depending on the financial leverage ratio we maintain. In connection with entering into the Credit Agreement, we incurred approximately $2.1 million of debt acquisition costs that were capitalized and will be amortized on a pro rata basis over the term of the Credit Agreement.

The terms of the Credit Agreement include various financial covenants, including covenants that require us to maintain specified financial ratios. We were in compliance with these covenants as of June 30, 2015. The Credit Agreement also includes customary provisions for transactions of this type, including events of default, with corresponding grace periods and cross-defaults to other agreements evidencing our indebtedness.

At June 30, 2015, $22.6 million of letters of credit (for which we had $11.2 million of liabilities recorded at June 30, 2015) were outstanding under the Credit Agreement. There were $155.0 million of borrowings outstanding under the Credit Agreement at June 30, 2015. Accordingly, as of June 30, 2015, $422.4 million remained available for potential borrowings under the Credit Agreement, of which $52.4 million was available for additional letters of credit.

Premium Financing Debt Facility - On May 18, 2015 we entered into a Syndicated Facility Agreement, revolving loan facility, which we refer to as the Premium Financing Debt Facility, that provides funding for the three acquired Australian (AU) and New Zealand (NZ) premium finance subsidiaries. The Premium Financing Debt Facility is comprised of: (i) Facility B, which is separated into AU$150.0 million and NZ$35.0 million tranches, (ii) Facility C, an AU$25.0 million equivalent multi-currency overdraft tranche and (iii) Facility D, a NZ$15.0 million equivalent multi-currency overdraft tranche. The Premium Financing Debt Facility expires May 18, 2017. This facility replaced a previous facility which was originally entered into on June 16, 2014.

The interest rates on Facility B are Interbank rates, which vary by tranche, duration and currency, plus a margin of 1.05%. The interest rates on Facilities C and D are 30 day Interbank rates, plus a margin of 0.55%. The annual fee for Facility B is 0.4725% of the undrawn commitments for the two tranches of the facility. The annual fee for Facilities C and D is 0.50% of the total commitments of the facilities.

The terms of our Premium Financing Debt Facility include various financial covenants, including covenants that require us to maintain specified financial ratios. We were in compliance with these covenants as of June 30, 2015. The Premium Financing Debt Facility also includes customary provisions for transactions of this type, including events of default, with corresponding grace periods and cross-defaults to other agreements evidencing our indebtedness. Facilities B, C and D are secured by the premium finance receivables of the Australian and New Zealand premium finance subsidiaries.

At June 30, 2015, AU$80.0 million and NZ$12.5 million of borrowings were outstanding under Facility B, AU$18.5 million of borrowings were outstanding under Facility C and NZ$10.1 million of borrowings were outstanding under Facility D. Accordingly, as of June 30, 2015, AU$70.0 million and NZ$22.5 million remained available for potential borrowing under Facility B, and AU$6.5 million and NZ$4.9 million under Facilities C and D, respectively.

See Note 13 to these unaudited consolidated financial statements for additional discussion on our contractual obligations and commitments as of June 30, 2015.

The aggregate estimated fair value of the $2,125.0 million in debt under the note purchase agreements at June 30, 2015 was $2,243.7 million due to the long-term duration and fixed interest rates associated with these debt obligations. No active or observable market exists for our private placement long-term debt. Therefore, the estimated fair value of this debt is based on discounted future cash flows, which is a Level 3 fair value measurement, using current interest rates available for debt with similar terms and remaining maturities. See Note 1, Fair Value of Financial Instruments, to our consolidated financial statements included in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2014. The estimated fair value of this debt is based on the income valuation approach, which is a valuation technique that converts future amounts (for example, cash flows or income and expenses) to a single current (that is, discounted) amount. The fair value measurement is determined on the basis of the value indicated by current market expectations about those future amounts. Because our debt issuances generate a measurable income stream for each lender, the income approach was deemed to be an appropriate methodology for valuing the private placement long-term debt. The methodology used calculated the original deal spread at the time of each debt issuance, which was equal to the difference between the yield of each issuance (the coupon rate) and the equivalent benchmark treasury yield at that time. The market spread as of the valuation date was calculated, which is equal to the difference between an index for investment grade insurers and the equivalent benchmark treasury yield today. An implied premium or discount to the par value of each debt issuance based on the difference between the origination deal spread and market as of the valuation date was then calculated. The index we relied on to represent investment graded insurers was the Bloomberg Valuation Services (BVAL) U.S. Insurers BBB index. This index is comprised primarily of insurance brokerage firms and was representative of the industry in which we operate. For the purposes of our analysis, the average BBB rate was assumed to be the appropriate borrowing rate for us based on our current estimated credit rating. The estimated fair value of the $155.0 million of borrowings outstanding under our Credit Agreement approximates their carrying value due to their short-term duration and variable interest rates. The estimated fair value of the $91.6 million of borrowings outstanding under our Premium Financing Debt Facility approximates their carrying value due to their short-term duration and variable interest rates.

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Stock Option Plans

6 Months Ended

Jun. 30, 2015

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Stock Option Plans

8. Stock Option Plans

Long-Term Incentive Plan

On May 13, 2014, our stockholders approved the Arthur J. Gallagher 2014 Long-Term Incentive Plan (which we refer to as the LTIP), which replaced our previous stockholder-approved Arthur J. Gallagher & Co. 2011 Long-Term Incentive Plan (which we refer to as the 2011 LTIP). The LTIP term began May 13, 2014 and terminates on the date of the annual meeting of stockholders in 2021, unless terminated earlier by our board of directors. All of our officers, employees and non-employee directors are eligible to receive awards under the LTIP. The compensation committee of our board of directors determines the participants under the LTIP. The LTIP provides for non-qualified and incentive stock options, stock appreciation rights, restricted stock, restricted stock units and performance units, any or all of which may be made contingent upon the achievement of performance criteria. A stock appreciation right entitles the holder to receive, upon exercise and subject to withholding taxes, cash or shares of our common stock (which may be restricted stock) with a value equal to the difference between the fair market value of our common stock on the exercise date and the base price of the stock appreciation right. Subject to the LTIP limits, the compensation committee has the discretionary authority to determine the size of an award.

Shares of our common stock available for issuance under the LTIP include authorized and unissued shares of common stock or authorized and issued shares of common stock reacquired and held as treasury shares or otherwise, or a combination thereof. The number of available shares will be reduced by the aggregate number of shares that become subject to outstanding awards granted under the LTIP. To the extent that shares subject to an outstanding award granted under either the LTIP or the 2011 LTIP are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or by reason of the settlement of such award in cash, then such shares will again be available for grant under the LTIP. Shares withheld to satisfy tax withholding requirements upon the vesting of awards other than stock options and stock appreciation rights will also be available for grant under the LTIP. Shares that are subject to a stock appreciation right and were not issued upon the net settlement or net exercise of such stock appreciation right, shares that are used to pay the exercise price of an option, delivered to or withheld by us to pay withholding taxes related to stock options or stock appreciation rights, and shares that are purchased on the open market with the proceeds of an option exercise, may not again be made available for issuance.

The maximum number of shares available under the LTIP for restricted stock, restricted stock unit awards and performance unit awards settled with stock (i.e., all awards other than stock options and stock appreciation rights) is 2.0 million at June 30, 2015. To the extent necessary to be qualified performance-based compensation under Section 162(m) of the Internal Revenue Code (which we refer to as the IRC): (i) the maximum number of shares with respect to which options or stock appreciation rights or a combination thereof that may be granted during any fiscal year to any person is 200,000; (ii) the maximum number of shares with respect to which performance-based restricted stock or restricted stock units that may be granted during any fiscal year to any person is 100,000; (iii) the maximum amount that may be payable with respect to cash-settled performance units granted during any fiscal year to any person is $5.0 million; and (iv) the maximum number of shares with respect to which stock-settled performance units may be granted during any fiscal year to any person is 100,000.

The LTIP provides for the grant of stock options, which may be either tax-qualified incentive stock options or non-qualified options and stock appreciation rights. The compensation committee determines the period for the exercise of a non-qualified stock option, tax-qualified incentive stock option or stock appreciation right, provided that no option can be exercised later than seven years after its date of grant. The exercise price of a non-qualified stock option or tax-qualified incentive stock option and the base price of a stock appreciation right cannot be less than 100% of the fair market value of a share of our common stock on the date of grant, provided that the base price of a stock appreciation right granted in tandem with an option will be the exercise price of the related option.

Upon exercise, the option exercise price may be paid in cash, by the delivery of previously owned shares of our common stock, through a net-exercise arrangement, or through a broker-assisted cashless exercise arrangement. The compensation committee determines all of the terms relating to the exercise, cancellation or other disposition of an option or stock appreciation right upon a termination of employment, whether by reason of disability, retirement, death or any other reason. Stock option and stock appreciation right awards under the LTIP are non-transferable.

On March 11, 2015, the compensation committee granted 1,941,000 options under the 2014 LTIP to our officers and key employees that become exercisable at the rate of 34%, 33% and 33% on the anniversary date of the grant in 2018, 2019 and 2020, respectively. On March 12, 2014, the compensation committee granted 1,923,000 options to our officers and key employees that become exercisable at the rate of 34%, 33% and 33% on the anniversary date of the grant in 2017, 2018 and 2019, respectively. The 2015 and 2014 options expire seven years from the date of grant, or earlier in the event of certain terminations of employment. For certain of our executive officers age 55 or older, stock options awarded in 2015 and 2014 are no longer subject to forfeiture upon such officers’ departure from the company after two years from the date of grant.

Other Information

All of our stock option plans provide for the immediate vesting of all outstanding stock option grants in the event of a change in control of our company, as defined in the applicable plan documents.

During the three-month periods ended June 30, 2015 and 2014, we recognized $2.9 million and $2.7 million, respectively, of compensation expense related to our stock option grants. During the six-month periods ended June 30, 2015 and 2014, we recognized $5.1 million and $4.0 million, respectively, of compensation expense related to our stock option grants.

For purposes of expense recognition, the estimated fair values of the stock option grants are amortized to expense over the options’ vesting period. We estimated the fair value of stock options at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:

	2015			2014
Expected dividend yield		3.0	%		3.0	%
Expected risk-free interest rate		1.8	%		1.8	%
Volatility		28.2	%		28.9	%
Expected life (in years)		5.5			5.5

Option valuation models require the input of highly subjective assumptions including the expected stock price volatility. The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable. Because our employee and director stock options have characteristics significantly different from those of traded options, and because changes in the selective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee and non-employee director stock options. The weighted average fair value per option for all options granted during the six-month periods ended June 30, 2015 and 2014, as determined on the grant date using the Black-Scholes option pricing model, was $9.25 and $9.66, respectively.

The following is a summary of our stock option activity and related information for 2015 (in millions, except exercise price and year data):

	Six-month period ended June 30, 2015
	Shares Under Option			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Beginning balance		8.4		$	35.49
Granted		1.9			46.17
Exercised		(1.2	)		27.50
Forfeited or canceled		—			—
Ending balance		9.1		$	38.90		4.55	$	76.5
Exercisable at end of period		2.4		$	28.46		2.26	$	44.5
Ending vested and expected to vest		8.9		$	38.78		4.52	$	76.0

Options with respect to 7.0 million shares (less any shares of restricted stock issued under the LTIP - see Note 10 to these unaudited consolidated financial statements) were available for grant under the LTIP at June 30, 2015.

The total intrinsic value of options exercised during the six-month periods ended June 30, 2015 and 2014 was $22.8 million and $19.7 million, respectively. As of June 30, 2015, we had approximately $41.2 million of total unrecognized compensation expense related to nonvested options. We expect to recognize that cost over a weighted average period of approximately four years.

Other information regarding stock options outstanding and exercisable at June 30, 2015 is summarized as follows (in millions, except exercise price and year data):

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$    21.28   -  $   30.95		2.2		2.04	$	27.24		2.0	$	26.95
31.34   -        39.17		3.0		4.26		37.64		0.4		35.65
46.17   -        46.17		1.9		6.70		46.17		—		—
46.87   -        47.92		2.0		5.71		46.88		—		—
$    21.28   -  $   47.92		9.1		4.55	$	38.90		2.4	$	28.46

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Investments - Investments Reported in Other Current and Non-Current Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
Assets	$ 83.3	$ 82.0
Funding Commitments	2.9
Chem-Mod LLC [Member]
Schedule of Equity Method Investments [Line Items]
Assets	4.0	4.0
Chem-Mod International LLC [Member]
Schedule of Equity Method Investments [Line Items]
Assets	$ 2.0	$ 2.0
C-Quest Technologies LLC and C-Quest Technologies International LLC [Member]
Schedule of Equity Method Investments [Line Items]
Assets
Clean-Coal Investments [Member] | Controlling Interest [Member] | Fourteen 2009 Era Clean Coal Plants [Member]
Schedule of Equity Method Investments [Line Items]
Assets	$ 15.6	$ 17.3
Clean-Coal Investments [Member] | Controlling Interest [Member] | Nineteen 2011 Era Clean Coal Plants [Member]
Schedule of Equity Method Investments [Line Items]
Assets	58.3	54.5
Clean-Coal Investments [Member] | Noncontrolling Interests [Member] | One 2011 Era Clean Coal Plant [Member]
Schedule of Equity Method Investments [Line Items]
Assets	0.9	1.0
Other Investments [Member]
Schedule of Equity Method Investments [Line Items]
Assets	2.5	$ 3.2
Funding Commitments	$ 2.9

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Investments - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Mar. 31, 2014	Aug. 01, 2013
Chem-Mod International LLC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest held	31.52%
C-Quest Technologies LLC and C-Quest Technologies International LLC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest held	12.00%
Increase in ownership interest	4.00%
Option to acquire additional interest, percent	19.00%
Option to acquire additional interest, total price	$ 9.5
End date for acquiring additional interest	Aug. 01, 2016
Loans to majority owners			$ 2.0
Interest rate of loan			2.00%
Maturity date of loan	May 15, 2014
Loan description	On August 1, 2013, we loaned the majority owner $2.0 million at a 2% interest rate, which was to mature on May 15, 2014. Also on August 1, 2013, the option to acquire the 19% interests was extended to August 15, 2016. The loan was to be repaid in cash or by delivery of an additional 4% ownership interest in C-Quest’s global entities. On March 31, 2014, we accepted payment of the loan by delivery of the additional 4% ownership interest, therefore our remaining option was reduced to 15% and the remaining purchase price was reduced to $7.5 million.
Delivery of additional ownership interest		4.00%
C-Quest Technologies LLC and C-Quest Technologies International LLC [Member] | Change in Option on Delivery of Additional Interest [Member]
Schedule of Equity Method Investments [Line Items]
Option to acquire additional interest, percent	15.00%
Option to acquire additional interest, total price	$ 7.5
Chem-Mod Clean-Coal Venture - U.S. and Canadian Operations [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest held	46.54%
Chem-Mod Clean-Coal Venture [Member]
Schedule of Equity Method Investments [Line Items]
Total assets of variable interest entities	$ 10.6
Total liabilities of variable interest entities	0.9
Total revenues of limited liability companies	34.7
Total expenses of limited liability companies	$ 1.5

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Retirement Plans - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Minimum contribution by employer	$ 0	$ 0

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Commitments, Contingencies and Off-Balance Sheet Arrangements (Tables)

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligations

 Our future minimum cash payments, including interest, associated with our contractual obligations pursuant to the note purchase agreements, Credit Agreement, Premium Financing Debt Facility, operating leases and purchase commitments at June 30, 2015 were as follows (in millions):

	Payments Due by Period
Contractual Obligations	2015			2016			2017			2018			2019			Thereafter		Total
Note purchase agreements	$	—		$	50.0		$	300.0		$	100.0		$	100.0		$	1,575.0	$	2,125.0
Credit Agreement		155.0			—			—			—			—			—		155.0
Premium Financing Debt Facility		91.6			—			—			—			—			—		91.6
Interest on debt		50.4			100.4			97.5			77.5			73.2			323.9		722.9
Total debt obligations		297.0			150.4			397.5			177.5			173.2			1,898.9		3,094.5
Operating lease obligations		52.7			92.0			80.5			61.2			49.0			173.5		508.9
Less sublease arrangements		(2.0	)		(1.3	)		(0.9	)		(0.7	)		(0.5	)		—		(5.4	)
Outstanding purchase obligations		24.9			14.7			9.4			7.3			6.9			7.0		70.2
Funding related to acquistion of William Gallagher Associates Insurance Brokers, Inc. (see Note 3)		150.0			—			—			—			—			—		150.0
Total contractual obligations	$	522.6		$	255.8		$	486.5		$	245.3		$	228.6		$	2,079.4	$	3,818.2

Off-Balance Sheet Commitments

Off-Balance Sheet Commitments - Our total unrecorded commitments associated with outstanding letters of credit, financial guarantees and funding commitments as of June 30, 2015 were as follows (in millions):

	Amount of Commitment Expiration by Period												Total Amounts Committed
Off-Balance Sheet Commitments	2015		2016		2017		2018		2019		Thereafter
Letters of credit	$	—	$	—	$	—	$	—	$	—	$	22.6	$	22.6
Financial guarantees		0.7		0.8		0.8		0.8		0.8		15.6		19.5
Funding commitments		—		—		—		—		1.5		1.4		2.9
Total commitments	$	0.7	$	0.8	$	0.8	$	0.8	$	2.3	$	39.6	$	45.0

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Credit and Other Debt Agreements - Summary of Corporate and Other Debt (Parenthetical) (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Premium Financing Debt Facility [Member]
Debt Instrument [Line Items]
Periodic payments of interest and principal, expiry date	May 18, 2017	May 18, 2017
Fixed Rate of 6.44%, Balloon Due 2017 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	6.44%	6.44%
Principal payments, year due	2017	2017
Fixed Rate of 5.85%, $50.0 Million Due in 2016, 2018 and 2019 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	5.85%	5.85%
Long-Term debt maturities repayments in 2016	$ 50	$ 50
Long-Term debt maturities repayments in 2018	50	50
Long-Term debt maturities repayments in 2019	$ 50	$ 50
Fixed Rate of 2.80%, Balloon Due 2018 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	2.80%	2.80%
Principal payments, year due	2018	2018
Fixed Rate of 3.20%, Balloon Due 2019 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	3.20%	3.20%
Principal payments, year due	2019	2019
Fixed Rate of 3.99%, Balloon Due 2020 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	3.99%	3.99%
Principal payments, year due	2020	2020
Fixed Rate of 3.48%, Balloon Due 2020 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	3.48%	3.48%
Principal payments, year due	2020	2020
Fixed Rate of 5.18%, Balloon Due 2021 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	5.18%	5.18%
Principal payments, year due	2021	2021
Fixed rate of 3.69%, Balloon Due 2022 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	3.69%	3.69%
Principal payments, year due	2022	2022
Fixed Rate of 5.49%, Balloon Due 2023 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	5.49%	5.49%
Principal payments, year due	2023	2023
Fixed Rate of 4.13%, Balloon Due 2023 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	4.13%	4.13%
Principal payments, year due	2023	2023
Fixed Rate of 4.58% Balloon Due 2024 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	4.58%	4.58%
Principal payments, year due	2024	2024
Fixed Rate of 4.31%, Balloon Due 2025 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	4.31%	4.31%
Principal payments, year due	2025	2025
Fixed Rate of 4.73% Balloon Due 2026 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	4.73%	4.73%
Principal payments, year due	2026	2026
Fixed Rate of 4.36%, Balloon Due 2026 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	4.36%	4.36%
Principal payments, year due	2026	2026
Fixed Rate of 4.98% Balloon Due 2029 [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	4.98%	4.98%
Principal payments, year due	2029	2029
Prime or LIBOR plus up to 1.45%, expires September 19, 2018 [Member] | Credit Agreement [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	1.45%	1.45%
Periodic payments of interest and principal, expiry date	Sep. 19, 2018	Sep. 19, 2018
First Installment [Member] | Fixed Rate of 5.85%, $50.0 Million Due in 2016, 2018 and 2019 [Member]
Debt Instrument [Line Items]
Principal payments, year due	2016	2016
Second Installment [Member] | Fixed Rate of 5.85%, $50.0 Million Due in 2016, 2018 and 2019 [Member]
Debt Instrument [Line Items]
Principal payments, year due	2018	2018
Third Installment [Member] | Fixed Rate of 5.85%, $50.0 Million Due in 2016, 2018 and 2019 [Member]
Debt Instrument [Line Items]
Principal payments, year due	2019	2019
Facility B [Member] | Interbank rates plus 1.05%, Expires May 18, 2017 [Member] | Premium Financing Debt Facility [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	1.05%	1.05%
Facility C and D [Member] | Interbank rates plus 0.55%, Expires May 18, 2017 [Member] | Premium Financing Debt Facility [Member]
Debt Instrument [Line Items]
Periodic Payment of Interest	0.55%	0.55%

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Commitments, Contingencies and Off-Balance Sheet Arrangements

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Off-Balance Sheet Arrangements

13. Commitments, Contingencies and Off-Balance Sheet Arrangements

In connection with our investing and operating activities, we have entered into certain contractual obligations and commitments. See Notes 6 and 12 to these unaudited consolidated financial statements for additional discussion of these obligations and commitments. Our future minimum cash payments, including interest, associated with our contractual obligations pursuant to the note purchase agreements, Credit Agreement, Premium Financing Debt Facility, operating leases and purchase commitments at June 30, 2015 were as follows (in millions):

	Payments Due by Period
Contractual Obligations	2015			2016			2017			2018			2019			Thereafter		Total
Note purchase agreements	$	—		$	50.0		$	300.0		$	100.0		$	100.0		$	1,575.0	$	2,125.0
Credit Agreement		155.0			—			—			—			—			—		155.0
Premium Financing Debt Facility		91.6			—			—			—			—			—		91.6
Interest on debt		50.4			100.4			97.5			77.5			73.2			323.9		722.9
Total debt obligations		297.0			150.4			397.5			177.5			173.2			1,898.9		3,094.5
Operating lease obligations		52.7			92.0			80.5			61.2			49.0			173.5		508.9
Less sublease arrangements		(2.0	)		(1.3	)		(0.9	)		(0.7	)		(0.5	)		—		(5.4	)
Outstanding purchase obligations		24.9			14.7			9.4			7.3			6.9			7.0		70.2
Funding related to acquistion of William Gallagher Associates Insurance Brokers, Inc. (see Note 3)		150.0			—			—			—			—			—		150.0
Total contractual obligations	$	522.6		$	255.8		$	486.5		$	245.3		$	228.6		$	2,079.4	$	3,818.2

The amounts presented in the table above may not necessarily reflect our actual future cash funding requirements, because the actual timing of future payments may vary from the stated contractual obligation.

Note Purchase Agreements, Credit Agreement and Premium Financing Debt Facility - See Note 6 to our unaudited consolidated financial statements for a discussion of the terms of the note purchase agreements, the Credit Agreement and Premium Financing Debt Facility.

Operating Lease Obligations - Our corporate segment’s executive offices and certain subsidiary and branch facilities of our brokerage and risk management segments are located at Two Pierce Place, Itasca, Illinois, where we lease approximately 306,000 square feet of space, or approximately 60% of the building. The lease commitment on this property expires February 28, 2018.

We generally operate in leased premises at our other locations. Certain of these leases have options permitting renewals for additional periods. In addition to minimum fixed rentals, a number of leases contain annual escalation clauses which are generally related to increases in an inflation index.

We have leased certain office space to several non-affiliated tenants under operating sublease arrangements. In the normal course of business, we expect that certain of these leases will not be renewed or replaced. We adjust charges for real estate taxes and common area maintenance annually based on actual expenses, and we recognize the related revenues in the year in which the expenses are incurred. These amounts are not included in the minimum future rentals to be received in the contractual obligations table above.

Outstanding Purchase Obligations - We typically do not have a material amount of outstanding purchase obligations at any point in time. The amount disclosed in the contractual obligations table above represents the aggregate amount of unrecorded purchase obligations that we had outstanding at June 30, 2015. These obligations represent agreements to purchase goods or services that were executed in the normal course of business.

Off-Balance Sheet Commitments - Our total unrecorded commitments associated with outstanding letters of credit, financial guarantees and funding commitments as of June 30, 2015 were as follows (in millions):

	Amount of Commitment Expiration by Period												Total Amounts Committed
Off-Balance Sheet Commitments	2015		2016		2017		2018		2019		Thereafter
Letters of credit	$	—	$	—	$	—	$	—	$	—	$	22.6	$	22.6
Financial guarantees		0.7		0.8		0.8		0.8		0.8		15.6		19.5
Funding commitments		—		—		—		—		1.5		1.4		2.9
Total commitments	$	0.7	$	0.8	$	0.8	$	0.8	$	2.3	$	39.6	$	45.0

Since commitments may expire unused, the amounts presented in the table above do not necessarily reflect our actual future cash funding requirements. See Note 12 to our unaudited consolidated financial statements for a discussion of our funding commitments related to our corporate segment and the Off-Balance Sheet Debt section below for a discussion of our letters of credit. All of the letters of credit represent multiple year commitments that have annual, automatic renewing provisions and are classified by the latest commitment date.

Since January 1, 2002, we have acquired 363 companies, all of which were accounted for using the acquisition method for recording business combinations. Substantially all of the purchase agreements related to these acquisitions contain provisions for potential earnout obligations. For all of our acquisitions made in the period from 2012 to 2015 that contain potential earnout obligations, such obligations are measured at fair value as of the acquisition date and are included on that basis in the recorded purchase price consideration for the respective acquisition. The amounts recorded as earnout payables are primarily based upon estimated future operating results of the acquired entities over a two- to three-year period subsequent to the acquisition date. The aggregate amount of the maximum earnout obligations related to these acquisitions was $596.6 million, of which $217.4 million was recorded in our consolidated balance sheet as of June 30, 2015 based on the estimated fair value of the expected future payments to be made. See Note 3 to these unaudited consolidated financial statements for a discussion of our funding commitments related to our acquisitions we signed and completed in 2015.

Off-Balance Sheet Debt - Our unconsolidated investment portfolio includes investments in enterprises where our ownership interest is between 1% and 50%, in which management has determined that our level of influence and economic interest is not sufficient to require consolidation. As a result, these investments are accounted for under the equity method. None of these unconsolidated investments had any outstanding debt at June 30, 2015 or December 31, 2014 that was recourse to us.

At June 30, 2015, we had posted two letters of credit totaling $11.3 million, in the aggregate, related to our self-insurance deductibles, for which we had a recorded liability of $11.2 million. We have an equity investment in a rent-a-captive facility, which we use as a placement facility for certain of our insurance brokerage operations. At June 30, 2015, we had posted seven letters of credit totaling $6.3 million to allow certain of our captive operations to meet minimum statutory surplus requirements and for additional collateral related to premium and claim funds held in a fiduciary capacity. At June 30, 2015, we had posted one letter of credit totaling $5.0 million to support our potential obligation under a client’s insurance program. These letters of credit have never been drawn upon.

Litigation, Regulatory and Taxation Matters - We are a defendant in various legal actions incidental to the nature of our business including but not limited to matters related to employment practices, alleged breaches of non-compete or other restrictive covenants, theft of trade secrets, breaches of fiduciary duties and related causes of action. We are also periodically the subject of inquiries, investigations and reviews by regulatory and taxing authorities into various matters related to our business. Neither the outcomes of these matters nor their effect upon our business, financial condition or results of operations can be determined at this time.

In July 2014, we were named in a lawsuit that asserts that we, our subsidiary, Gallagher Clean Energy, LLC, and Chem-Mod LLC are liable for infringement of a patent held by Nalco Company. The complaint seeks a judgment of infringement, damages, costs and attorneys’ fees, and injunctive relief. We and the other defendants dispute the allegations contained in the complaint and intend to defend this matter vigorously. On September 30, 2014, we filed a motion to dismiss the complaint on behalf of all defendants. On February 4, 2015, our motion to dismiss was granted by the court; however, the court also granted Nalco Company 30 days to file an amended complaint, which Nalco did on March 3, 2015, and we filed a second motion to dismiss on April 10, 2015. We believe that the probability of a material loss is remote. However, litigation is inherently uncertain and it is not possible for us to predict the ultimate disposition of this proceeding.

During January and February 2015, five senior employees of our U.K.-based international brokerage operation, including the chief executive officer and chief financial officer, resigned from the company and disclosed that they intend to work for another insurance brokerage firm. In April 2015, we commenced litigation against the former chief executive officer, the former chief financial officer and a third-party financial advisor. Among other things, the litigation seeks damages for breach of fiduciary duty, breach of contract and taking of corporate opportunities. A trial date has been set for February 2016.

During the first quarter of 2015, the Financial Conduct Authority (FCA) of the U.K. informed us that it will undertake a Skilled Person Review pursuant to section 166 of the U.K.’s Financial Services and Markets Act 2000. The purpose of the review is to assess the risk and control framework for our regulated entities in the U.K. In July 2015, KPMG was appointed as the Skilled Person. We are cooperating fully with the FCA and the Skilled Person in this review. We believe that the risk and control framework we have in place is appropriate to our U.K. operations’ size and scale. As such, we do not believe the review will have a material adverse effect on our results of operations.

Our micro-captive advisory services are under investigation by the Internal Revenue Service (IRS). Additionally, the IRS has initiated audits for the 2012 tax year of over 100 of the micro-captive insurance companies organized and/or managed by us. Among other matters, the IRS is investigating whether we have been acting as a tax shelter promoter in connection with these operations. While the IRS has not made specific allegations relating to our operations, if the IRS were to successfully assert that the micro-captives organized and/or managed by us do not meet the requirements of IRC Section 831(b), we could be subject to monetary claims by the IRS and/or our micro-captive clients, and our future earnings from our micro-captive operations could be materially adversely affected, any of which events, could negatively impact the overall captive business and adversely affect our consolidated results of operations and financial condition. Due to the early stage of the investigation and the fact that the IRS has not made any allegation against us, we are not able to reasonably estimate the amount of any potential loss in connection with this investigation.

Contingent Liabilities - We purchase insurance to provide protection from errors and omissions (which we refer to as E&O) claims that may arise during the ordinary course of business. We currently retain the first $5.0 million of each and every E&O claim. Our E&O insurance provides aggregate coverage for E&O losses up to $175.0 million in excess of our retained amounts. We have historically maintained self-insurance reserves for the portion of our E&O exposure that is not insured. We periodically determine a range of possible reserve levels using actuarial techniques that rely heavily on projecting historical claim data into the future. Our E&O reserve in the June 30, 2015 unaudited consolidated balance sheet is above the lower end of the most recently determined actuarial range by $1.7 million and below the upper end of the actuarial range by $6.1 million. We can make no assurances that the historical claim data used to project the current reserve levels will be indicative of future claim activity. Thus, the E&O reserve level and corresponding actuarial range could change in the future as more information becomes known, which could materially impact the amounts reported and disclosed herein.

Tax-advantaged Investments No Longer Held - Between 1996 and 2007, we developed and then sold portions of our ownership in various energy related investments, many of which qualified for tax credits under IRC Section 29. In connection with the sales to other investors, we provided various indemnifications. At June 30, 2015, the maximum potential amount of future payments that we could be required to make under these indemnifications totaled approximately $32.0 million, net of the applicable income tax benefit. In addition, we recorded tax benefits in connection with our ownership in these investments. At June 30, 2015, we had exposure on $117.0 million of previously earned tax credits. In 2004, 2007 and 2009, the IRS examined several of these investments and all examinations were closed without any changes being proposed by the IRS. However, any future adverse tax audits, administrative rulings or judicial decisions could disallow previously claimed tax credits or cause us to be subject to liability under our indemnification obligations. Because of the contingent nature of these exposures and our related assessment of their likelihood, no liabilities have been recorded in our June 30, 2015 consolidated balance sheet related to these indemnification obligations.

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Business Combinations (Tables)

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Acquisition Method for Recording Business Combinations

During the six-month period ended June 30, 2015, we acquired substantially all of the net assets of the following firms in exchange for our common stock and/or cash. These acquisitions have been accounted for using the acquisition method for recording business combinations (in millions except share data):

Name and Effective Date of Acquisition	Common Shares Issued		Common Share Value		Cash Paid		Accrued Liability		Escrow Deposited		Recorded Earnout Payable		Total Recorded Purchase Price		Maximum Potential Earnout Payable
	(000s)
e3 Financial, Inc. (EFI) January 1, 2015		2	$	—	$	9.1	$	—	$	0.1	$	0.7	$	9.9	$	7.0
Aequus Trade Credit LLC January 31, 2015		11		0.3		1.5		—		0.2		1.3		3.3		1.9
Cohen & Lord Insurance Brokers Limited February 1, 2015		77		3.6		2.1		—		—		—		5.7		—
Cohn Financial Group, LLC (CFG) February 1, 2015		407		19.0		—		—		0.3		4.2		23.5		14.0
Excel Insurance Services, Inc. February 1, 2015		52		1.5		7.3		—		1.0		—		9.8		—
Metcom Excess February 1, 2015		49		1.8		2.3		—		0.5		—		4.6		—
NationAir Aviation Insurance (NAI) February 1, 2015		288		12.3		—		—		1.3		—		13.6		—
Evolution Group of Companies February 6, 2015		101		4.7		0.9		0.5		0.4		2.9		9.4		3.1
Burns-Fazzi, Brock & Associates, LLC (BFB) April 1, 2015		709		33.4		—		—		1.0		7.4		41.8		27.0
Madison Risk & Insurance Services, Inc. (MRI) April 1, 2015		232		10.3		3.7		—		1.0		1.4		16.4		4.0
Integrated Healthcare Strategies, LLC (IHS) May 1, 2015		990		41.4		0.5		3.1		6.2		4.5		55.7		20.8
James R. Weir Insurance Agency, Inc. May 1, 2015		56		2.5		—		—		0.3		0.8		3.6		1.1
McDowall Associates Human Resources Consultants Ltd. May 1, 2015		34		1.5		0.6		0.6		0.1		0.5		3.3		2.5
Vital Benefits, Inc. May 1, 2015		118		5.6		—		—		0.1		—		5.7		—
Monument, LLC (ML) June 1, 2015		254		10.8		4.0		—		1.7		2.4		18.9		5.0
Solid Benefit Guidance Limited Liability Company (SBG) June 1, 2015		932		44.0		0.3		2.5		1.0		11.6		59.4		32.5
Eight other acquisitions completed in 2015		106		5.0		13.1		0.4		1.0		3.2		22.7		30.4
		4,418	$	197.7	$	45.4	$	7.1	$	16.2	$	40.9	$	307.3	$	149.3

Summary of Estimated Fair Values of Net Assets Acquired

The following is a summary of the estimated fair values of the net assets acquired at the date of each acquisition made in the six-month period ended June 30, 2015 (in millions):

	EFI		CFG		NAI		BFB		MRI		IHS		ML		SBG		Sixteen Other Acquisitions		Total
Cash	$	—	$	0.1	$	—	$	0.1	$	0.1	$	—	$	—	$	—	$	3.0	$	3.3
Other current assets		—		—		4.7		0.3		0.6		8.3		0.2		1.4		18.4		33.9
Fixed assets		—		—		—		—		—		1.1		—		—		5.5		6.6
Noncurrent assets		—		—		—		—		—		—		—		—		0.6		0.6
Goodwill		6.1		11.3		9.8		18.5		6.3		24.8		5.7		30.9		30.0		143.4
Expiration lists		3.7		12.0		5.2		23.0		9.9		24.8		13.0		27.7		31.1		150.4
Non-compete agreements		0.1		0.1		0.2		0.1		0.1		0.1		—		0.1		0.8		1.6
Total assets acquired		9.9		23.5		19.9		42.0		17.0		59.1		18.9		60.1		89.4		339.8
Current liabilities		—		—		4.2		0.2		0.6		3.4		—		0.7		16.3		25.4
Noncurrent liabilities		—		—		2.1		—		—		—		—		—		5.0		7.1
Total liabilities assumed		—		—		6.3		0.2		0.6		3.4		—		0.7		21.3		32.5
Total net assets acquired	$	9.9	$	23.5	$	13.6	$	41.8	$	16.4	$	55.7	$	18.9	$	59.4	$	68.1	$	307.3

Summary of Unaudited Pro Forma Historical Results

The following is a summary of the unaudited pro forma historical results, as if these entities had been acquired at January 1, 2014 (in millions, except per share data):

	Three-month period ended June 30,				Six-month period ended June 30,
	2015		2014		2015		2014
Total revenues	$	1,379.3	$	1,209.5	$	2,637.6	$	2,155.6
Net earnings attributable to noncontrolling interests		139.4		110.7		162.7		162.3
Basic net earnings per share		0.81		0.70		0.95		1.09
Diluted net earnings per share		0.80		0.69		0.95		1.08

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Intangible Assets - Estimated Aggregate Amortization Expense (Detail) $ in Millions	Jun. 30, 2015 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2015 (remaining six months)	$ 114.9
2016	224.2
2017	213.6
2018	199.6
2019	186.3
Total	$ 938.6

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Business Combinations - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended		162 Months Ended
	Jun. 30, 2015 USD ($) Entity	Jun. 30, 2014 USD ($) Entity	Jun. 30, 2015 USD ($) Entity Employees	Jun. 30, 2014 USD ($) Entity	Jun. 30, 2015 USD ($) Entity
Business Acquisition [Line Items]
Accretion of the discount on acquisition	$ 4.3	$ 3.4	$ 8.5	$ 6.7
Income related to net adjustments to estimated fair value of liability for earnout obligations	$ 1.3	$ 3.6	$ 7.7	$ 5.4
Number of companies acquired | Entity	24	18	43	35	363
Aggregate amount of maximum earnout obligations related to acquisitions			$ 596.6
Aggregate amount of maximum earnout obligations related to acquisitions, recorded in consolidated balance sheet			217.4
Goodwill	$ 143.4		143.4		$ 143.4
Expiration lists	150.4		150.4		150.4
Non-compete agreements	1.6		1.6		1.6
Total revenues related to acquisitions in the aggregate	1,379.3	$ 1,209.5	2,637.6	$ 2,155.6
Brokerage and Risk Management [Member]
Business Acquisition [Line Items]
Goodwill	143.4		143.4		143.4
Expiration lists	150.4		150.4		150.4
Non-compete agreements	1.6		$ 1.6		1.6
Expiration lists, amortization period, minimum, years			3 years
Expiration lists, amortization period, maximum, years			15 years
Non-compete agreements, amortization period, minimum, years			3 years
Non-compete agreements, amortization period, maximum, years			5 years
Trade names, amortization period, minimum ,years			5 years
Trade names, amortization period, maximum, years			15 years
Write-off of amortizable intangible assets			$ 0.5	$ 0.6
Maximum [Member]
Business Acquisition [Line Items]
Revenue growth rate			12.00%
2015 Acquisitions [Member] | Market Approach Valuation Technique [Member] | Minimum [Member]
Business Acquisition [Line Items]
Revenue growth rate			6.50%
Discount rate			8.50%
2015 Acquisitions [Member] | Income Approach Valuation Technique [Member] | Maximum [Member]
Business Acquisition [Line Items]
Revenue growth rate			5.00%
Discount rate			13.00%
Attrition rate			13.00%
Business Acquisition [Member]
Business Acquisition [Line Items]
Annualized revenue of business acquisitions			$ 123.5
Total revenues related to acquisitions in the aggregate			26.9
Net earnings			2.0
Business Acquisition [Member] | Brokerage [Member]
Business Acquisition [Line Items]
Expiration lists	150.4		150.4		150.4
Non-compete agreements	1.6		1.6		1.6
Deferred tax liability	5.3		5.3		5.3
Goodwill related to nondeductible amortizable intangible assets			3.9
Business Acquisition [Member] | Expiration Lists [Member] | Brokerage [Member]
Business Acquisition [Line Items]
Business acquisition not deductible for income tax purposes	18.2		18.2		18.2
Business Acquisition [Member] | Non-Compete Agreements [Member] | Brokerage [Member]
Business Acquisition [Line Items]
Business acquisition not deductible for income tax purposes	$ 0.6		0.6		$ 0.6
William Gallagher Associates Insurance Brokers Inc [Member]
Business Acquisition [Line Items]
Cash and common stock paid for acquisition			150.0
Annualized revenue of business acquisitions			$ 50.0
Number of employees at office of acquired entity | Employees			200
2014 Acquisitions [Member] | Income Approach Valuation Technique [Member] | Minimum [Member]
Business Acquisition [Line Items]
Revenue growth rate			2.00%
Discount rate			11.00%
Attrition rate			3.00%

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Consolidated Balance Sheet (Parenthetical) - shares shares in Millions	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock - issued shares	174.5	164.6
Common stock - outstanding shares	174.5	164.6

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Effect of New Accounting Pronouncements

6 Months Ended

Jun. 30, 2015

Accounting Changes and Error Corrections [Abstract]

Effect of New Accounting Pronouncements

2. Effect of New Accounting Pronouncements

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (which we refer to as the FASB) issued new accounting guidance on revenue from contracts with customers, which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principal of the new guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. On July 9, 2015, the FASB decided to delay the effective date of the new revenue standard by one year. Reporting entities may choose to adopt the standard as of the original effective date. The FASB decided, based on its outreach to various stakeholders and the forthcoming amendments to the new revenue standard, that a deferral is necessary to provide adequate time to effectively implement the new revenue standard. This new guidance was originally effective for the first quarter of 2017 and early adoption is not permitted. With the one year deferral date, this new guidance is now effective for the first quarter of 2018, but it can be adopted earlier in first quarter of 2017. The guidance permits two methods of transition upon adoption; full retrospective and modified retrospective. Under the full retrospective method, prior periods would be restated under the new revenue standard, providing a comparable view across all periods presented. Under the modified retrospective method, prior periods would not be restated. Rather, revenues and other disclosures for pre-2017/2018 periods would be provided in the notes to the financial statements as previously reported under the current revenue standard. Management is currently reviewing the guidance, and the impact from its adoption on our consolidated financial statements cannot be determined at this time.

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Stock Option Plans - Stock Option Activity and Related Information (Detail) - Jun. 30, 2015 - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Total
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares Under Option, Beginning balance	8.4
Shares Under Option, Granted	1.9
Shares Under Option, Exercised	(1.2)
Shares Under Option, Forfeited or canceled	0.0
Shares Under Option, Ending balance	9.1
Shares Under Option, Exercisable at end of period	2.4
Shares Under Option, Ending vested and expected to vest	8.9
Weighted Average Exercise Price, Beginning balance	$ 35.49
Weighted Average Exercise Price, Granted	46.17
Weighted Average Exercise Price, Exercised	27.50
Weighted Average Exercise Price, Forfeited or canceled	0
Weighted Average Exercised Price, Ending balance	38.90
Weighted Average Exercise Price, Exercisable at end of period	28.46
Weighted Average Exercise price, Ending vested and expected to vest	$ 38.78
Weighted Average Remaining Contractual Term (in years), Ending balance	4 years 6 months 18 days
Weighted Average Remaining Contractual Term (in years), Exercisable at end of period	2 years 3 months 4 days
Weighted Average Remaining Contractual Term (in years), Ending vested and expected to vested	4 years 6 months 7 days
Aggregate Intrinsic Value, Ending Balance	$ 76.5
Aggregate Intrinsic Value, Exercisable at end of period	44.5
Aggregate Intrinsic Value, Ending vested and expected to vest	$ 76.0

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Commitments, Contingencies and Off-Balance Sheet Arrangements - Contractual Obligations (Detail) $ in Millions	Jun. 30, 2015 USD ($)
Note Purchase Agreements [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Contractual Obligations, Payments Due by Period, 2015
Contractual Obligations, Payments Due by Period, 2016	$ 50.0
Contractual Obligations, Payments Due by Period, 2017	300.0
Contractual Obligations, Payments Due by Period, 2018	100.0
Contractual Obligations, Payments Due by Period, 2019	100.0
Contractual Obligations, Payments Due by Period, Thereafter	1,575.0
Contractual Obligations, Payments Due by Period, Total	2,125.0
Multi Currency Credit Agreement [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Contractual Obligations, Payments Due by Period, 2015	$ 155.0
Contractual Obligations, Payments Due by Period, 2016
Contractual Obligations, Payments Due by Period, 2017
Contractual Obligations, Payments Due by Period, 2018
Contractual Obligations, Payments Due by Period, 2019
Contractual Obligations, Payments Due by Period, Thereafter
Contractual Obligations, Payments Due by Period, Total	$ 155.0
Premium Financing Debt Facility [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Contractual Obligations, Payments Due by Period, 2015	$ 91.6
Contractual Obligations, Payments Due by Period, 2016
Contractual Obligations, Payments Due by Period, 2017
Contractual Obligations, Payments Due by Period, 2018
Contractual Obligations, Payments Due by Period, 2019
Contractual Obligations, Payments Due by Period, Thereafter
Contractual Obligations, Payments Due by Period, Total	$ 91.6
Interest On Debt [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Contractual Obligations, Payments Due by Period, 2015	50.4
Contractual Obligations, Payments Due by Period, 2016	100.4
Contractual Obligations, Payments Due by Period, 2017	97.5
Contractual Obligations, Payments Due by Period, 2018	77.5
Contractual Obligations, Payments Due by Period, 2019	73.2
Contractual Obligations, Payments Due by Period, Thereafter	323.9
Contractual Obligations, Payments Due by Period, Total	722.9
Total Debt Obligations [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Contractual Obligations, Payments Due by Period, 2015	297.0
Contractual Obligations, Payments Due by Period, 2016	150.4
Contractual Obligations, Payments Due by Period, 2017	397.5
Contractual Obligations, Payments Due by Period, 2018	177.5
Contractual Obligations, Payments Due by Period, 2019	173.2
Contractual Obligations, Payments Due by Period, Thereafter	1,898.9
Contractual Obligations, Payments Due by Period, Total	3,094.5
Operating Lease Obligations [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Contractual Obligations, Payments Due by Period, 2015	52.7
Contractual Obligations, Payments Due by Period, 2016	92.0
Contractual Obligations, Payments Due by Period, 2017	80.5
Contractual Obligations, Payments Due by Period, 2018	61.2
Contractual Obligations, Payments Due by Period, 2019	49.0
Contractual Obligations, Payments Due by Period, Thereafter	173.5
Contractual Obligations, Payments Due by Period, Total	508.9
Less Sublease Arrangements [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Contractual Obligations, Payments Due by Period, 2015	(2.0)
Contractual Obligations, Payments Due by Period, 2016	(1.3)
Contractual Obligations, Payments Due by Period, 2017	(0.9)
Contractual Obligations, Payments Due by Period, 2018	(0.7)
Contractual Obligations, Payments Due by Period, 2019	$ (0.5)
Contractual Obligations, Payments Due by Period, Thereafter
Contractual Obligations, Payments Due by Period, Total	$ (5.4)
Outstanding Purchase Obligations [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Contractual Obligations, Payments Due by Period, 2015	24.9
Contractual Obligations, Payments Due by Period, 2016	14.7
Contractual Obligations, Payments Due by Period, 2017	9.4
Contractual Obligations, Payments Due by Period, 2018	7.3
Contractual Obligations, Payments Due by Period, 2019	6.9
Contractual Obligations, Payments Due by Period, Thereafter	7.0
Contractual Obligations, Payments Due by Period, Total	70.2
Funding Related to Acquisition of William Gallagher Associates Insurance Brokers, Inc. [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Contractual Obligations, Payments Due by Period, 2015	$ 150.0
Contractual Obligations, Payments Due by Period, 2016
Contractual Obligations, Payments Due by Period, 2017
Contractual Obligations, Payments Due by Period, 2018
Contractual Obligations, Payments Due by Period, 2019
Contractual Obligations, Payments Due by Period, Thereafter
Contractual Obligations, Payments Due by Period, Total	$ 150.0
Total Contractual Obligations [Member]
Commitments Contingencies And Off Balance Sheet Arrangements [Line Items]
Contractual Obligations, Payments Due by Period, 2015	522.6
Contractual Obligations, Payments Due by Period, 2016	255.8
Contractual Obligations, Payments Due by Period, 2017	486.5
Contractual Obligations, Payments Due by Period, 2018	245.3
Contractual Obligations, Payments Due by Period, 2019	228.6
Contractual Obligations, Payments Due by Period, Thereafter	2,079.4
Contractual Obligations, Payments Due by Period, Total	$ 3,818.2

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Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2015

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Summary of Major Classes of Other Current Assets

Major classes of other current assets consist of the following (in millions):

	June 30, 2015		December 31, 2014
Premium finance advances and loans	$	219.8	$	232.6
Accrued supplemental, direct bill and other receivables		193.7		156.3
Refined coal production related receivables		130.4		103.5
Deferred income taxes - current		106.7		102.2
Prepaid expenses		80.8		72.1
Total other current assets	$	731.4	$	666.7

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Segment Information - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015 Segment
Segment Reporting [Abstract]
Number of reportable operating segments	3

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Nature of Operations and Basis of Presentation - Effect of Immaterial Changes to Presentation of Consolidated Statement of Earnings (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating expense	$ 207.1	$ 179.2	$ 410.6	$ 328.0
Earnings before income taxes	128.5	111.9	159.4	166.6
Provision for income taxes	19.1	1.8	20.6	4.9
Net earnings	147.6	113.7	180.0	171.5
Net earnings attributable to noncontrolling interests	(8.3)	(4.7)	(18.8)	(13.2)
Net earnings attributable to controlling interests	$ 139.3	$ 109.0	$ 161.2	$ 158.3
Basic net earnings per share	$ 0.82	$ 0.71	$ 0.96	$ 1.10
Diluted net earnings per share	$ 0.81	$ 0.70	$ 0.95	$ 1.09
As Previously Reported [Member]
Operating expense		$ 184.0		$ 341.2
Earnings before income taxes		107.1		153.4
Provision for income taxes		(1.9)		(4.9)
Net earnings		$ 109.0		$ 158.3
Basic net earnings per share		$ 0.71		$ 1.10
Diluted net earnings per share		$ 0.70		$ 1.09
As Restated [Member]
Operating expense		$ 179.2		$ 328.0
Earnings before income taxes		111.9		166.6
Provision for income taxes		(1.8)		(4.9)
Net earnings		113.7		171.5
Net earnings attributable to noncontrolling interests		4.7		13.2
Net earnings attributable to controlling interests		$ 109.0		$ 158.3
Basic net earnings per share		$ 0.71		$ 1.10
Diluted net earnings per share		$ 0.70		$ 1.09

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Investments

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Investments

12. Investments

The following is a summary of our investments and the related funding commitments (in millions):

	June 30, 2015				December 31,
			Funding		2014
	Assets		Commitments		Assets
Chem-Mod LLC	$	4.0	$	—	$	4.0
Chem-Mod International LLC		2.0		—		2.0
C-Quest Technologies LLC and C-Quest Technologies International LLC		—		—		—
Clean-coal investments:
Controlling interest in five limited liability companies that own fourteen 2009 Era Clean Coal Plants		15.6		—		17.3
Non-controlling interest in one limited liability company that owns one 2011 Era Clean Coal Plant		0.9		—		1.0
Controlling interest in fourteen limited liability companies that own nineteen 2011 Era Clean Coal Plants		58.3		—		54.5
Other investments		2.5		2.9		3.2
Total investments	$	83.3	$	2.9	$	82.0

Chem-Mod LLC - At June 30, 2015, we held a 46.54% controlling interest in Chem-Mod. Chem-Mod possesses the exclusive marketing rights, in the U.S. and Canada, for technologies used to reduce emissions created during the combustion of coal. The refined coal production plants discussed below, as well as those owned by other unrelated parties, license and use Chem-Mod’s proprietary technologies, The Chem-Mod™ Solution, in the production of refined coal. The Chem-Mod™ Solution uses a dual injection sorbent system to reduce mercury, sulfur dioxide and other emissions at coal-fired power plants.

We believe that the application of The Chem-Mod™ Solution qualifies for refined coal tax credits under IRC Section 45 when used with refined coal production plants placed in service by December 31, 2011 or 2009. Chem-Mod has been marketing its technologies principally to coal-fired power plants owned by utility companies, including those utilities that are operating with the IRC Section 45 refined coal production plants in which we hold an investment.

Chem-Mod is determined to be a variable interest entity (which we refer to as a VIE). We are the controlling manager of Chem-Mod and therefore consolidate its operations into our consolidated financial statements. At June 30, 2015, total assets and total liabilities of this VIE included in our consolidated balance sheet were $10.6 million and $0.9 million, respectively. For the six-month period ended June 30, 2015, total revenues and expenses were $34.7 million and $1.5 million, respectively. We are under no obligation to fund Chem-Mod’s operations in the future.

Chem-Mod International LLC - At June 30, 2015, we held a 31.52% non-controlling ownership interest in Chem-Mod International. Chem-Mod International has the rights to market The Chem-Mod™ Solution in countries other than the U.S. and Canada. Such marketing activity has been limited to date.

C-Quest Technologies LLC and C-Quest Technologies International LLC (together, C-Quest) - At June 30, 2015, we held a non-controlling 12% interest in C-Quest’s global entities, which is an increase of 4% resulting from the transaction described below. C-Quest possesses rights, information and technology for the reduction of carbon dioxide emissions created by burning fossil fuels. Thus far, C-Quest’s operations have been limited to laboratory testing.C-Quest is determined to be a VIE, but due to our lack of control over the operation of C-Quest, we do not consolidate this investment into our consolidated financial statements. Prior to August 1, 2013, we had an option to acquire an additional 19% interest in C-Quest’s global entities for $9.5 million at any time on or prior to August 1, 2016. On August 1, 2013, we loaned the majority owner $2.0 million at a 2% interest rate, which was to mature on May 15, 2014. Also on August 1, 2013, the option to acquire the 19% interests was extended to August 15, 2016. The loan was to be repaid in cash or by delivery of an additional 4% ownership interest in C-Quest’s global entities. On March 31, 2014, we accepted payment of the loan by delivery of the additional 4% ownership interest, therefore our remaining option was reduced to 15% and the remaining purchase price was reduced to $7.5 million.

Clean Coal Investments -

• We have investments in limited liability companies that own 34 refined coal production plants which produce refined coal using propriety technologies owned by Chem-Mod. We believe the production and sale of refined coal at these plants is qualified to receive refined coal tax credits under IRC Section 45. The fourteen plants placed in service prior to December 31, 2009 (which we refer to as the 2009 Era Plants) are eligible to receive tax credits through 2019 and the twenty plants placed in service prior to December 31, 2011 (which we refer to as the 2011 Era Plants) are eligible to receive tax credits through 2021.

• On March 1, 2013, we purchased an additional ownership interest in twelve of the 2009 Era Plants from a co-investor. For nine of the plants, our ownership increased from 24.5% to 49.5%. Our investment in these nine plants had been accounted for under the equity method of accounting until the March 1, 2014 transaction described below. For the other three of the plants, our ownership increased from 25.0% to 60.0%. Our investment in these plants had been accounted for under the equity method of accounting. As of March 1, 2013, we consolidated the operations of the limited liability company that owns these three plants. Our purchase price for the additional ownership interests in these twelve plants was the assumption of the promissory note that we received as consideration for the co-investor’s purchase of ownership interests in three of the 2009 Era Plants on March 1, 2010, which had a carrying value, including accrued interest, of $8.0 million at March 1, 2013, plus the payment of cash and other consideration of $5.0 million. We recognized a gain of $11.4 million as a component of other net revenues in the accompanying unaudited consolidated statement of earnings, which included the increase in fair value of our prior 25% equity interest in the limited liability company upon the acquisition of the additional 35% equity interest, and recorded $26.3 million of fixed and other amortizable intangible assets and $6.8 million of other assets in connection with this transaction. The carrying value of our prior non-controlling interest in the limited liability company was $4.8 million as of the acquisition date. The fair value of our prior non-controlling interest in the limited liability company was determined by allocating, on a pro rata basis, the fair value of the limited liability company as adjusted for our lack of control in our prior ownership position. We determined the fair value of the limited liability company using similar valuation techniques to those discussed in Note 3 to these unaudited consolidated financial statements.

• On March 1, 2014, we purchased additional ownership interests from a co-investor in four limited liability companies that own seven 2009 Era Plants and five 2011 Era Plants. We recognized a gain of $25.6 million as a component of other net revenues in the accompanying unaudited consolidated statement of earnings, which included the increase in fair value of our prior equity interests in the limited liability companies upon the acquisition of the additional equity interests, and recorded $26.3 million of fixed and other amortizable intangible assets in connection with this transaction. The carrying value of our prior non-controlling interest in the limited liability company was $15.6 million as of the acquisition date. The fair value of our prior non-controlling interest in the limited liability company was determined by allocating, on a pro rata basis, the fair value of the limited liability company as adjusted for our lack of control in our prior ownership position. We determined the fair value of the limited liability company using similar valuation techniques to those discussed in Note 3 to these consolidated financial statements. For seven of the 2009 Era plants, our ownership increased from 49.5% to 100.0%. For the 2011 Era plants, our ownership increased from 48.8% to 90.0% for one of the plants, from 49.0% to 100.0% for three of the plants and from 98.0% to 100.0% for one of the plants. Our investments in the plants where our ownership was less than 50% had been accounted for under the equity method of accounting. As of March 1, 2014 we consolidated the operations of the limited liability companies that own these plants. Total revenues and expenses recorded in our unaudited consolidated statement of earnings for the three-month period ended June 30, 2015 related to this acquisition were $131.3 million and $139.8 million, respectively.

• As of June 30, 2015:

• Twenty-six of the plants have long-term production contracts.

• The remaining eight plants are in various stages of seeking and negotiating long-term production contracts.

• We have a non-controlling interest in one plant, which is owned by a limited liability company (which we refer to as a LLC). We have determined that this LLC is a VIE, for which we are not the primary beneficiary. At June 30, 2015, total assets and total liabilities of this VIE were $9.9 million and $7.1 million, respectively. For the six-month period ended June 30, 2015, total revenues and expenses of this VIE were $16.1 million and $19.7 million, respectively.

• We and our co-investors each fund our portion of the on-going operations of the limited liability companies in proportion to our investment ownership percentages. Other than our portion of the on-going operational funding, there are no additional amounts that we are committed to related to funding these investments.

Other Investments - At June 30, 2015, we owned a non-controlling, minority interest in four venture capital funds totaling $2.0 million, a 20% non-controlling interest in an investment management company totaling $0.5 million, twelve certified low-income housing developments with zero carrying value and two real estate entities with zero carrying value. The low-income housing developments and real estate entities have been determined to be VIEs, but are not required to be consolidated due to our lack of control over their respective operations. At June 30, 2015, total assets and total debt of these VIEs were approximately $60.0 million and $20.0 million, respectively.