Delaware | 36-2668272 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Name of each exchange on which registered | |
Common Stock, par value $1.00 per share | New York Stock Exchange | |
Chicago Stock Exchange | ||
London Stock Exchange |
Large Accelerated Filer x | Accelerated Filer ¨ | |
Non-Accelerated Filer ¨ (Do not check if a smaller reporting company) | Smaller Reporting Company ¨ |
TABLE OF CONTENTS | ||
PART I | ||
Item 1 — | ||
Item 1A — | ||
Item 1B — | ||
Item 2 — | ||
Item 3 — | ||
Item 4 — | ||
PART II | ||
Item 5 — | ||
Item 6 — | ||
Item 7 — | ||
Item 7A — | ||
Item 8 — | ||
Item 9 — | ||
Item 9A — | ||
Item 9B — | ||
PART III | ||
Item 10 — | ||
Item 11 — | ||
Item 12 — | ||
Item 13 — | ||
Item 14 — | ||
PART IV | ||
Item 15 — | ||
Signatures |
• | Risk and Insurance Services includes risk management activities (risk advice, risk transfer and risk control and mitigation solutions) as well as insurance and reinsurance broking and services. We conduct business in this segment through Marsh and Guy Carpenter. |
• | Consulting includes Health, Retirement, Talent and Investments consulting services and products, and specialized management, economic and brand consulting services. We conduct business in this segment through Mercer and Oliver Wyman Group. |
Risk & Specialty Practices | Industry Practices | |
• Aviation & Aerospace | • Aviation | |
• Casualty | • Chemicals | |
• Claims | • Communications, Media and Technology | |
• Cyber | • Construction | |
• Employee Benefits | • Education | |
• Energy | • Energy | |
• Environmental | • Financial Institutions | |
• Financial and Professional (FINPRO) | • Forestry Products | |
• Marine | • Healthcare | |
• Political Risk | • Hospitality & Gaming | |
• Premium Finance | • Life Sciences | |
• Private Equity and Mergers & Acquisitions (PEMA) | • Manufacturing and Automotive | |
• Product Recall | • Marine | |
• Project Risk | • Mining, Metals & Minerals | |
• Property | • Power & Utilities | |
• Surety | • Public Entities | |
• Trade Credit | • Rail | |
• Workers’ Compensation | • Real Estate | |
• Retail / Wholesale | ||
• Sports, Entertainment & Events | ||
• Transportation |
• | Automotive |
• | Aviation, Aerospace & Defense |
• | Business Services |
• | Communications, Media & Technology |
• | Distribution & Wholesale |
• | Energy |
• | Financial services (including corporate and institutional banking, insurance, wealth and asset management, public policy, and retail and business banking) |
• | Health & Life Sciences |
• | Industrial products |
• | Public Sector |
• | Retail & consumer products |
• | Surface transportation |
• | Travel & Leisure |
• | Actuarial. Oliver Wyman offers actuarial consulting services to public and private enterprises, self-insured group organizations, insurance companies, government entities, insurance regulatory agencies and other organizations. |
• | Business & Organization Transformation. Oliver Wyman advises organizations undergoing or anticipating profound change or facing strategic discontinuities or risks by providing guidance on leading the institution, structuring its operations, improving its performance and building its organizational capabilities. |
• | Corporate Finance & Restructuring. Oliver Wyman provides an array of capabilities to support investment decision making by private equity funds, hedge funds, sovereign wealth funds, investment banks, commercial banks, arrangers, strategic investors and insurers. |
• | Digital. Oliver Wyman has a dedicated cross-industry team helping clients to capitalize on the opportunities created by digital technology and address the strategic threats. |
• | Marketing & Sales. Oliver Wyman advises leading firms in the areas of offer/pricing optimization; product/service portfolio management; product innovation; marketing spend optimization; value-based customer management; and sales and distribution model transformation. |
• | Oliver Wyman Labs. Oliver Wyman applies innovative approaches to technology to drive business impact for its clients. The mission of OW Labs is to help clients to unleash the power of the information they already have or could capture - essentially to become knowledge-powered businesses - and through that to drive competitive advantage and sustained impact. |
• | Operations & Technology. Oliver Wyman offers market-leading IT organization design, IT economics management, Lean Six Sigma principles and methodologies, and sourcing expertise to clients across a broad range of industries. |
• | Risk Management. Oliver Wyman works with chief financial officers, chief risk officers, and other senior finance and risk management executives of corporations and financial institutions. Oliver Wyman provides a range of services that provide effective, customized solutions to the challenges presented by the evolving roles, needs and priorities of these individuals and organizations. |
• | Strategy. Oliver Wyman is a leading provider of corporate strategy advice and solutions in the areas of growth strategy and corporate portfolio; non-organic growth and M&A; performance improvement; business design and innovation; corporate center and shared services; and strategic planning. |
• | Sustainability Center. The Sustainability Center at Oliver Wyman supports leading companies and governments around the world in their efforts to foster economic growth while encouraging more responsible use of natural resources and environmental protection. |
• | Value Sourcing. Oliver Wyman helps organizations with optimization of purchasing processes or organization; cost monitoring; low-cost country sourcing; supply chain management; strategic sourcing; sequenced supply; part kitting; and with transforming procurement into a strong competitive advantage, delivering sustained value. |
• | Guidelines for Corporate Governance; |
• | Code of Conduct, The Greater Good; |
• | Procedures for Reporting Complaints and Concerns Regarding Accounting Matters; and |
• | the charters of the Audit Committee, Compensation Committee, Corporate Responsibility Committee and Directors and Governance Committee of the Company’s Board of Directors. |
• | the significance of client engagements commenced and completed during a quarter; |
• | the possibility that clients may decide to delay or terminate a current or anticipated project as a result of factors unrelated to our work product or progress; |
• | fluctuations in hiring and utilization rates and clients' ability to terminate engagements without penalty; |
• | seasonality due to the impact of regulatory deadlines, policy renewals and other timing factors to which our clients are subject; |
• | the success of our acquisitions or investments; |
• | macroeconomic factors such as changes in foreign exchange rates, interest rates and global securities markets, particularly in the case of Mercer, where fees in its investments business and certain other business lines are derived from the value of assets under management or administration; and |
• | general economic conditions, since results of operations are directly affected by the levels of business activity of our clients, which in turn are affected by the level of economic activity in the industries and markets that they serve. |
• | economic and political conditions in the countries in which we operate; |
• | unexpected increases in taxes or changes in U.S. or foreign tax laws or rulings; |
• | withholding or other taxes that foreign governments may impose on the payment of dividends or other remittances to us from our non-U.S. subsidiaries; |
• | potential transfer pricing-related tax exposures that may result from the allocation of U.S.-based costs that benefit our non-U.S. businesses; |
• | potential conflicts of interest that may arise as we expand the scope of our businesses and our client base; |
• | international hostilities, terrorist activities, natural disasters and infrastructure disruptions; |
• | local investment or other financial restrictions that foreign governments may impose; |
• | potential costs and difficulties in complying with a wide variety of foreign laws and regulations (including tax systems) administered by foreign government agencies, some of which may conflict with U.S. or other sources of law; |
• | potential costs and difficulties in complying, or monitoring compliance, with foreign and U.S. laws and regulations that are applicable to our operations abroad, including trade sanctions laws relating to countries such as Cuba, Iran, Russia, Sudan and Syria and anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010; |
• | limitations or restrictions that foreign or U.S. governments and regulators may impose on the products or services we sell or the methods by which we sell our products and services; |
• | limitations that foreign governments may impose on the conversion of currency or the payment of dividends or other remittances to us from our non-U.S. subsidiaries; |
• | the length of payment cycles and potential difficulties in collecting accounts receivable; |
• | engaging and relying on third parties to perform services on behalf of the Company; and |
• | potential difficulties in monitoring employees in geographically dispersed locations. |
• | our ability to transition consultants promptly from completed projects to new assignments, and to engage newly-hired consultants quickly in revenue-generating activities; |
• | our ability to continually secure new business engagements, particularly because a portion of our work is project-based rather than recurring in nature; |
• | our ability to forecast demand for our services and thereby maintain appropriate headcount in each of our geographies and workforces; |
• | our ability to manage attrition; |
• | unanticipated changes in the scope of client engagements; |
• | the potential for conflicts of interest that might require us to decline client engagements that we otherwise would have accepted; |
• | our need to devote time and resources to sales, training, professional development and other non-billable activities; |
• | the potential disruptive impact of acquisitions and dispositions; and |
• | general economic conditions. |
• | clients' perception of our ability to add value through our services; |
• | market demand for the services we provide; |
• | our ability to develop new services and the introduction of new services by competitors; |
• | the pricing policies of our competitors; |
• | the extent to which our clients develop in-house or other capabilities to perform the services that they might otherwise purchase from us; and |
• | general economic conditions. |
2015 Stock Price Range | 2014 Stock Price Range | |||||||
High | Low | High | Low | |||||
First Quarter | $58.11 | $53.50 | $50.48 | $44.25 | ||||
Second Quarter | $59.99 | $55.79 | $52.39 | $46.78 | ||||
Third Quarter | $58.83 | $50.90 | $53.64 | $50.09 | ||||
Fourth Quarter | $57.46 | $51.05 | $58.74 | $48.66 | ||||
Full Year | $59.99 | $50.90 | $58.74 | $44.25 |
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | ||||||||||
Oct 1-31, 2015 | 1,393,738 | $ | 53.8118 | 1,393,738 | $ | 1,155,471,664 | ||||||||
Nov 1-30, 2015 | — | $ | — | — | $ | 1,155,471,664 | ||||||||
Dec 1-31, 2015 | — | $ | — | — | $ | 1,155,471,664 | ||||||||
Total | 1,393,738 | $ | 53.8118 | 1,393,738 | $ | 1,155,471,664 |
For the Years Ended December 31, (In millions, except per share figures) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Revenue | $ | 12,893 | $ | 12,951 | $ | 12,261 | $ | 11,924 | $ | 11,526 | ||||||||||
Expense: | ||||||||||||||||||||
Compensation and Benefits | 7,334 | 7,515 | 7,226 | 7,134 | 6,969 | |||||||||||||||
Other Operating Expenses | 3,140 | 3,135 | 2,958 | 2,961 | 2,919 | |||||||||||||||
Operating Expenses | 10,474 | 10,650 | 10,184 | 10,095 | 9,888 | |||||||||||||||
Operating Income (a) | 2,419 | 2,301 | 2,077 | 1,829 | 1,638 | |||||||||||||||
Interest Income | 13 | 21 | 18 | 24 | 28 | |||||||||||||||
Interest Expense | (163 | ) | (165 | ) | (167 | ) | (181 | ) | (199 | ) | ||||||||||
Cost of Extinguishment of Debt | — | (137 | ) | (24 | ) | — | (72 | ) | ||||||||||||
Investment Income | 38 | 37 | 69 | 24 | 9 | |||||||||||||||
Income Before Income Taxes | 2,307 | 2,057 | 1,973 | 1,696 | 1,404 | |||||||||||||||
Income Tax Expense | 671 | 586 | 594 | 492 | 422 | |||||||||||||||
Income From Continuing Operations | 1,636 | 1,471 | 1,379 | 1,204 | 982 | |||||||||||||||
Discontinued Operations, Net of Tax | — | 26 | 6 | (3 | ) | 33 | ||||||||||||||
Net Income Before Non-Controlling Interests | 1,636 | 1,497 | 1,385 | 1,201 | 1,015 | |||||||||||||||
Less: Net Income Attributable to Non-Controlling Interests | 37 | 32 | 28 | 25 | 22 | |||||||||||||||
Net Income Attributable to the Company | $ | 1,599 | $ | 1,465 | $ | 1,357 | $ | 1,176 | $ | 993 | ||||||||||
Basic Net Income Per Share Information: | ||||||||||||||||||||
Income From Continuing Operations | $ | 3.01 | $ | 2.64 | $ | 2.46 | $ | 2.16 | $ | 1.76 | ||||||||||
Income From Discontinued Operations | — | 0.05 | 0.01 | — | 0.06 | |||||||||||||||
Net Income Attributable to the Company | $ | 3.01 | $ | 2.69 | $ | 2.47 | $ | 2.16 | $ | 1.82 | ||||||||||
Average Number of Shares Outstanding | 531 | 545 | 549 | 544 | 542 | |||||||||||||||
Diluted Income Per Share Information: | ||||||||||||||||||||
Income From Continuing Operations | $ | 2.98 | $ | 2.61 | $ | 2.42 | $ | 2.13 | $ | 1.73 | ||||||||||
Discontinued Operations, net of tax per share | — | 0.04 | 0.01 | — | 0.06 | |||||||||||||||
Net Income Attributable to the Company | $ | 2.98 | $ | 2.65 | $ | 2.43 | $ | 2.13 | $ | 1.79 | ||||||||||
Average Number of Shares Outstanding | 536 | 553 | 558 | 552 | 551 | |||||||||||||||
Dividends Paid Per Share | $ | 1.18 | $ | 1.06 | $ | 0.96 | $ | 0.90 | $ | 0.86 | ||||||||||
Return on Average Equity | 23 | % | 19 | % | 19 | % | 19 | % | 16 | % | ||||||||||
Year-end Financial Position: | ||||||||||||||||||||
Working capital (b) | $ | 1,336 | $ | 1,856 | $ | 2,027 | $ | 2,007 | $ | 1,545 | ||||||||||
Total assets (b) | $ | 18,216 | $ | 17,793 | $ | 16,960 | $ | 16,274 | $ | 15,449 | ||||||||||
Long-term debt (b) | $ | 4,402 | $ | 3,368 | $ | 2,619 | $ | 2,657 | $ | 2,667 | ||||||||||
Total equity | $ | 6,602 | $ | 7,133 | $ | 7,975 | $ | 6,606 | $ | 5,940 | ||||||||||
Total shares outstanding (net of treasury shares) | 522 | 540 | 547 | 545 | 539 | |||||||||||||||
Other Information: | ||||||||||||||||||||
Number of employees | 60,000 | 57,000 | 55,000 | 54,000 | 52,000 | |||||||||||||||
Stock price ranges— | ||||||||||||||||||||
U.S. exchanges — High | $ | 59.99 | $ | 58.74 | $ | 48.56 | $ | 35.78 | $ | 32.00 | ||||||||||
— Low | $ | 50.90 | $ | 44.25 | $ | 34.43 | $ | 30.69 | $ | 25.29 |
(a) | Includes the impact of net restructuring costs of $28 million, $12 million, $22 million, $78 million, and $51 million in 2015, 2014, 2013, 2012 and 2011, respectively. |
(b) | In 2015, the Company adopted new Financial Accounting Standards Board guidance related to the presentation of deferred tax assets and liabilities and debt issuance costs. The 2011-2014 amounts have been amended to reflect the adoption of the new guidance. See Footnote 1 in the consolidated financial statements for a discussion of the changes. |
• | Risk and Insurance Services includes risk management activities (risk advice, risk transfer and risk control and mitigation solutions) as well as insurance and reinsurance broking and services. We conduct business in this segment through Marsh and Guy Carpenter. |
• | Consulting includes Health, Retirement, Talent and Investments consulting services and products, and specialized management, economic and brand consulting services. We conduct business in this segment through Mercer and Oliver Wyman Group. |
For the Years Ended December 31, (In millions, except per share figures) | 2015 | 2014 | 2013 | ||||||||
Revenue | $ | 12,893 | $ | 12,951 | $ | 12,261 | |||||
Expense | |||||||||||
Compensation and Benefits | 7,334 | 7,515 | 7,226 | ||||||||
Other Operating Expenses | 3,140 | 3,135 | 2,958 | ||||||||
Operating Expenses | 10,474 | 10,650 | 10,184 | ||||||||
Operating Income | $ | 2,419 | $ | 2,301 | $ | 2,077 | |||||
Income from Continuing Operations | $ | 1,636 | $ | 1,471 | $ | 1,379 | |||||
Discontinued Operations, Net of Tax | — | 26 | 6 | ||||||||
Net Income Before Non-Controlling Interests | $ | 1,636 | $ | 1,497 | $ | 1,385 | |||||
Net Income Attributable to the Company | $ | 1,599 | $ | 1,465 | $ | 1,357 | |||||
Net Income from Continuing Operations Per Share: | |||||||||||
Basic | $ | 3.01 | $ | 2.64 | $ | 2.46 | |||||
Diluted | $ | 2.98 | $ | 2.61 | $ | 2.42 | |||||
Net Income Per Share Attributable to the Company: | |||||||||||
Basic | $ | 3.01 | $ | 2.69 | $ | 2.47 | |||||
Diluted | $ | 2.98 | $ | 2.65 | $ | 2.43 | |||||
Average number of shares outstanding: | |||||||||||
Basic | 531 | 545 | 549 | ||||||||
Diluted | 536 | 553 | 558 | ||||||||
Shares outstanding at December 31, | 522 | 540 | 547 |
Year Ended December 31, | Components of Revenue Change* | ||||||||||||||||||
(In millions, except percentage figures) | 2015 | 2014 | % Change GAAP Revenue | Currency Impact | Acquisitions/ Dispositions Impact | Underlying Revenue | |||||||||||||
Risk and Insurance Services | |||||||||||||||||||
Marsh | $ | 5,727 | $ | 5,753 | — | (7 | )% | 3 | % | 3 | % | ||||||||
Guy Carpenter | 1,121 | 1,154 | (3 | )% | (4 | )% | (1 | )% | 2 | % | |||||||||
Subtotal | 6,848 | 6,907 | (1 | )% | (6 | )% | 2 | % | 3 | % | |||||||||
Fiduciary Interest Income | 21 | 24 | |||||||||||||||||
Total Risk and Insurance Services | 6,869 | 6,931 | (1 | )% | (6 | )% | 2 | % | 3 | % | |||||||||
Consulting | |||||||||||||||||||
Mercer | 4,313 | 4,350 | (1 | )% | (7 | )% | 2 | % | 4 | % | |||||||||
Oliver Wyman Group | 1,751 | 1,709 | 3 | % | (6 | )% | 2 | % | 7 | % | |||||||||
Total Consulting | 6,064 | 6,059 | — | (7 | )% | 2 | % | 5 | % | ||||||||||
Corporate/Eliminations | (40 | ) | (39 | ) | |||||||||||||||
Total Revenue | $ | 12,893 | $ | 12,951 | — | (6 | )% | 2 | % | 4 | % |
* | Components of revenue change may not add due to rounding. |
Year Ended December 31, | Components of Revenue Change* | ||||||||||||||||||
(In millions, except percentage figures) | 2015 | 2014 | % Change GAAP Revenue | Currency Impact | Acquisitions/ Dispositions Impact | Underlying Revenue | |||||||||||||
Marsh: | |||||||||||||||||||
EMEA | $ | 1,848 | $ | 1,980 | (7 | )% | (10 | )% | 1 | % | 2 | % | |||||||
Asia Pacific | 636 | 683 | (7 | )% | (10 | )% | 1 | % | 2 | % | |||||||||
Latin America | 380 | 413 | (8 | )% | (18 | )% | 2 | % | 8 | % | |||||||||
Total International | 2,864 | 3,076 | (7 | )% | (11 | )% | 1 | % | 3 | % | |||||||||
U.S. / Canada | 2,863 | 2,677 | 7 | % | (1 | )% | 5 | % | 3 | % | |||||||||
Total Marsh | $ | 5,727 | $ | 5,753 | — | (7 | )% | 3 | % | 3 | % | ||||||||
Mercer: | |||||||||||||||||||
Health | $ | 1,558 | $ | 1,553 | — | (3 | )% | (2 | )% | 6 | % | ||||||||
Retirement | 1,345 | 1,375 | (2 | )% | (7 | )% | 5 | % | — | ||||||||||
Investments | 818 | 836 | (2 | )% | (12 | )% | 2 | % | 7 | % | |||||||||
Talent | 592 | 586 | 1 | % | (7 | )% | 3 | % | 5 | % | |||||||||
Total Mercer | $ | 4,313 | $ | 4,350 | (1 | )% | (7 | )% | 2 | % | 4 | % |
Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of certain items that affect comparability such as: acquisitions, dispositions and transfers among businesses. The impact of a $37 million gain in 2015 from the disposal of Mercer's U.S. defined contribution recordkeeping business is included in acquisitions/dispositions in Mercer's Retirement business. | |
* | Components of revenue change may not add due to rounding. |
Year Ended December 31, | Components of Revenue Change* | ||||||||||||||||||
(In millions, except percentage figures) | 2014 | 2013 | % Change GAAP Revenue | Currency Impact | Acquisitions/ Dispositions Impact | Underlying Revenue | |||||||||||||
Risk and Insurance Services | |||||||||||||||||||
Marsh | $ | 5,753 | $ | 5,438 | 6 | % | (1 | )% | 3 | % | 4 | % | |||||||
Guy Carpenter | 1,154 | 1,131 | 2 | % | — | 1 | % | 2 | % | ||||||||||
Subtotal | 6,907 | 6,569 | 5 | % | (1 | )% | 3 | % | 4 | % | |||||||||
Fiduciary Interest Income | 24 | 27 | |||||||||||||||||
Total Risk and Insurance Services | 6,931 | 6,596 | 5 | % | (1 | )% | 3 | % | 3 | % | |||||||||
Consulting | |||||||||||||||||||
Mercer | 4,350 | 4,241 | 3 | % | (1 | )% | — | 3 | % | ||||||||||
Oliver Wyman Group | 1,709 | 1,460 | 17 | % | — | 2 | % | 15 | % | ||||||||||
Total Consulting | 6,059 | 5,701 | 6 | % | (1 | )% | — | 6 | % | ||||||||||
Corporate /Eliminations | (39 | ) | (36 | ) | |||||||||||||||
Total Revenue | $ | 12,951 | $ | 12,261 | 6 | % | (1 | )% | 2 | % | 5 | % |
* | Components of revenue change may not add due to rounding. |
Year Ended December 31, | Components of Revenue Change* | |||||||||||||||||||
(In millions, except percentage figures) | 2014 | 2013 | % Change GAAP Revenue | Currency Impact | Acquisitions/ Dispositions Impact | Underlying Revenue | ||||||||||||||
Marsh: | ||||||||||||||||||||
EMEA | $ | 1,980 | $ | 1,902 | 4 | % | — | 1 | % | 3 | % | |||||||||
Asia Pacific | 683 | 659 | 4 | % | (4 | )% | — | 7 | % | |||||||||||
Latin America | 413 | 392 | 5 | % | (10 | )% | 6 | % | 10 | % | ||||||||||
Total International | 3,076 | 2,953 | 4 | % | (2 | )% | 1 | % | 5 | % | ||||||||||
U.S. / Canada | 2,677 | 2,485 | 8 | % | (1 | )% | 6 | % | 3 | % | ||||||||||
Total Marsh | $ | 5,753 | $ | 5,438 | 6 | % | (1 | )% | 3 | % | 4 | % | ||||||||
Mercer: | ||||||||||||||||||||
Health | $ | 1,553 | $ | 1,511 | 3 | % | (1 | )% | — | 3 | % | |||||||||
Retirement | 1,375 | 1,344 | 2 | % | — | — | 2 | % | ||||||||||||
Investments | 836 | 780 | 7 | % | (3 | )% | 1 | % | 9 | % | ||||||||||
Talent | 586 | 606 | (3 | )% | (2 | )% | — | (1 | )% | |||||||||||
Total Mercer | $ | 4,350 | $ | 4,241 | 3 | % | (1 | )% | — | 3 | % |
Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of certain items that affect comparability such as: acquisitions, dispositions and transfers among businesses. | |
* | Components of revenue change may not add due to rounding. |
(In millions of dollars) | 2015 | 2014 | 2013 | ||||||||
Revenue | $ | 6,869 | $ | 6,931 | $ | 6,596 | |||||
Compensation and Benefits | 3,629 | 3,781 | 3,618 | ||||||||
Other Operating Expenses | 1,701 | 1,641 | 1,557 | ||||||||
Operating Expenses | 5,330 | 5,422 | 5,175 | ||||||||
Operating Income | $ | 1,539 | $ | 1,509 | $ | 1,421 | |||||
Operating Income Margin | 22.4 | % | 21.8 | % | 21.5 | % |
(In millions of dollars) | 2015 | 2014 | 2013 | ||||||||
Revenue | $ | 6,064 | $ | 6,059 | $ | 5,701 | |||||
Compensation and Benefits | 3,354 | 3,398 | 3,269 | ||||||||
Other Operating Expenses | 1,635 | 1,665 | 1,587 | ||||||||
Operating Expenses | 4,989 | 5,063 | 4,856 | ||||||||
Operating Income | $ | 1,075 | $ | 996 | $ | 845 | |||||
Operating Income Margin | 17.7 | % | 16.4 | % | 14.8 | % |
For the Years Ended December 31, (In millions of dollars, except per share figures) | 2015 | 2014 | 2013 | ||||||||
Income (loss) from discontinued operations, net of tax | $ | — | $ | — | $ | — | |||||
Disposals of discontinued operations | (5 | ) | 42 | (4 | ) | ||||||
Income tax (credit) expense | (5 | ) | 16 | (10 | ) | ||||||
Disposals of discontinued operations, net of tax | — | 26 | 6 | ||||||||
Discontinued operations, net of tax | $ | — | $ | 26 | $ | 6 | |||||
Discontinued operations, net of tax per share | |||||||||||
—Basic | $ | — | $ | 0.05 | $ | 0.01 | |||||
—Diluted | $ | — | $ | 0.04 | $ | 0.01 |
Payment due by Period | |||||||||||||||||||
Contractual Obligations (In millions of dollars) | Total | Within 1 Year | 1-3 Years | 4-5 Years | After 5 Years | ||||||||||||||
Current portion of long-term debt | $ | 12 | $ | 12 | $ | — | $ | — | $ | — | |||||||||
Long-term debt | 4,433 | — | 525 | 827 | 3,081 | ||||||||||||||
Interest on long-term debt | 1,496 | 166 | 321 | 289 | 720 | ||||||||||||||
Net operating leases | 2,149 | 325 | 566 | 416 | 842 | ||||||||||||||
Service agreements | 284 | 172 | 101 | 9 | 2 | ||||||||||||||
Other long-term obligations | 508 | 143 | 310 | 50 | 5 | ||||||||||||||
Purchase commitments | 13 | 13 | — | — | — | ||||||||||||||
Total | $ | 8,895 | $ | 831 | $ | 1,823 | $ | 1,591 | $ | 4,650 |
0.5 Percentage Point Increase | 0.5 Percentage Point Decrease | ||||||||||||||
(In millions of dollars) | U.S. | U.K. | U.S. | U.K. | |||||||||||
Assumed Rate of Return on Plan Assets | $ | (22 | ) | $ | (40 | ) | $ | 22 | $ | 40 | |||||
Discount Rate | $ | (26 | ) | $ | (7 | ) | $ | 29 | $ | 6 |
(In millions of dollars) | December 31, 2015 | ||
Cash and cash equivalents invested in money market funds, certificates of deposit and time deposits | $ | 1,374 | |
Fiduciary cash and investments | $ | 4,146 |
For the Years Ended December 31, | ||||||||||||
(In millions, except per share figures) | 2015 | 2014 | 2013 | |||||||||
Revenue | $ | 12,893 | $ | 12,951 | $ | 12,261 | ||||||
Expense: | ||||||||||||
Compensation and benefits | 7,334 | 7,515 | 7,226 | |||||||||
Other operating expenses | 3,140 | 3,135 | 2,958 | |||||||||
Operating expenses | 10,474 | 10,650 | 10,184 | |||||||||
Operating income | 2,419 | 2,301 | 2,077 | |||||||||
Interest income | 13 | 21 | 18 | |||||||||
Interest expense | (163 | ) | (165 | ) | (167 | ) | ||||||
Cost of extinguishment of debt | — | (137 | ) | (24 | ) | |||||||
Investment income | 38 | 37 | 69 | |||||||||
Income before income taxes | 2,307 | 2,057 | 1,973 | |||||||||
Income tax expense | 671 | 586 | 594 | |||||||||
Income from continuing operations | 1,636 | 1,471 | 1,379 | |||||||||
Discontinued operations, net of tax | — | 26 | 6 | |||||||||
Net income before non-controlling interests | 1,636 | 1,497 | 1,385 | |||||||||
Less: Net income attributable to non-controlling interests | 37 | 32 | 28 | |||||||||
Net income attributable to the Company | $ | 1,599 | $ | 1,465 | $ | 1,357 | ||||||
Basic net income per share – Continuing operations | $ | 3.01 | $ | 2.64 | $ | 2.46 | ||||||
– Net income attributable to the Company | $ | 3.01 | $ | 2.69 | $ | 2.47 | ||||||
Diluted net income per share – Continuing operations | $ | 2.98 | $ | 2.61 | $ | 2.42 | ||||||
– Net income attributable to the Company | $ | 2.98 | $ | 2.65 | $ | 2.43 | ||||||
Average number of shares outstanding – Basic | 531 | 545 | 549 | |||||||||
– Diluted | 536 | 553 | 558 | |||||||||
Shares outstanding at December 31, | 522 | 540 | 547 |
For the Years Ended December 31, (In millions) | 2015 | 2014 | 2013 | ||||||||
Net income before non-controlling interests | $ | 1,636 | $ | 1,497 | $ | 1,385 | |||||
Other comprehensive income (loss), before tax: | |||||||||||
Foreign currency translation adjustments | (639 | ) | (527 | ) | (86 | ) | |||||
Unrealized investment income | 1 | — | 1 | ||||||||
Gain (loss) related to pension/post-retirement plans | 337 | (1,085 | ) | 1,213 | |||||||
Other comprehensive (loss) income, before tax | (301 | ) | (1,612 | ) | 1,128 | ||||||
Income tax expense (credit) on other comprehensive (loss) income | 72 | (386 | ) | 442 | |||||||
Other comprehensive (loss) income, net of tax | (373 | ) | (1,226 | ) | 686 | ||||||
Comprehensive income | 1,263 | 271 | 2,071 | ||||||||
Less: Comprehensive income attributable to non-controlling interests | 37 | 32 | 28 | ||||||||
Comprehensive income attributable to the Company | $ | 1,226 | $ | 239 | $ | 2,043 |
December 31, | |||||||
(In millions, except share figures) | 2015 | 2014 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,374 | $ | 1,958 | |||
Receivables | |||||||
Commissions and fees | 3,198 | 3,142 | |||||
Advanced premiums and claims | 51 | 50 | |||||
Other | 309 | 280 | |||||
3,558 | 3,472 | ||||||
Less-allowance for doubtful accounts and cancellations | (87 | ) | (95 | ) | |||
Net receivables | 3,471 | 3,377 | |||||
Other current assets | 199 | 198 | |||||
Total current assets | 5,044 | 5,533 | |||||
Goodwill | 7,889 | 7,241 | |||||
Other intangible assets | 1,036 | 692 | |||||
Fixed assets, net | 773 | 809 | |||||
Pension related assets | 1,159 | 967 | |||||
Deferred tax assets | 1,138 | 1,358 | |||||
Other assets | 1,177 | 1,193 | |||||
$ | 18,216 | $ | 17,793 | ||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt | $ | 12 | $ | 11 | |||
Accounts payable and accrued liabilities | 1,886 | 1,883 | |||||
Accrued compensation and employee benefits | 1,656 | 1,633 | |||||
Accrued income taxes | 154 | 150 | |||||
Total current liabilities | 3,708 | 3,677 | |||||
Fiduciary liabilities | 4,146 | 4,552 | |||||
Less – cash and investments held in a fiduciary capacity | (4,146 | ) | (4,552 | ) | |||
— | — | ||||||
Long-term debt | 4,402 | 3,368 | |||||
Pension, postretirement and postemployment benefits | 2,058 | 2,244 | |||||
Liability for errors and omissions | 318 | 341 | |||||
Other liabilities | 1,128 | 1,030 | |||||
Commitments and contingencies | — | — | |||||
Equity: | |||||||
Preferred stock, $1 par value, authorized 6,000,000 shares, none issued | — | — | |||||
Common stock, $1 par value, authorized | |||||||
1,600,000,000 shares, issued 560,641,640 shares at December 31, 2015 and December 31, 2014 | 561 | 561 | |||||
Additional paid-in capital | 861 | 930 | |||||
Retained earnings | 11,302 | 10,335 | |||||
Accumulated other comprehensive loss | (4,220 | ) | (3,847 | ) | |||
Non-controlling interests | 89 | 79 | |||||
8,593 | 8,058 | ||||||
Less – treasury shares, at cost, 38,743,686 shares at December 31, 2015 and 20,499,596 shares at December 31, 2014 | (1,991 | ) | (925 | ) | |||
Total equity | 6,602 | 7,133 | |||||
$ | 18,216 | $ | 17,793 |
For the Years Ended December 31, | |||||||||||
(In millions) | 2015 | 2014 | 2013 | ||||||||
Operating cash flows: | |||||||||||
Net income before non-controlling interests | $ | 1,636 | $ | 1,497 | $ | 1,385 | |||||
Adjustments to reconcile net income to cash provided by operations: | |||||||||||
Depreciation and amortization of fixed assets and capitalized software | 314 | 302 | 286 | ||||||||
Amortization of intangible assets | 109 | 86 | 72 | ||||||||
Intangible asset impairment | — | — | 5 | ||||||||
Adjustments and payments related to contingent consideration liability | 11 | 19 | 24 | ||||||||
Cost of early extinguishment of debt | — | 137 | 24 | ||||||||
Provision for deferred income taxes | 178 | 127 | 184 | ||||||||
Gain on investments | (38 | ) | (37 | ) | (69 | ) | |||||
(Gain) Loss on disposition of assets | (13 | ) | (38 | ) | 1 | ||||||
Share-based compensation expense | 88 | 93 | 129 | ||||||||
Changes in assets and liabilities: | |||||||||||
Net receivables | (52 | ) | (58 | ) | (245 | ) | |||||
Other current assets | 3 | 8 | 1 | ||||||||
Other assets | (10 | ) | 13 | (141 | ) | ||||||
Accounts payable and accrued liabilities | (125 | ) | 45 | 106 | |||||||
Accrued compensation and employee benefits | 23 | 167 | (8 | ) | |||||||
Accrued income taxes | (15 | ) | 33 | 43 | |||||||
Contributions to pension and other benefit plans in excess of current year expense/credit | (231 | ) | (152 | ) | (432 | ) | |||||
Other liabilities | (60 | ) | (196 | ) | 8 | ||||||
Effect of exchange rate changes | 70 | 73 | (32 | ) | |||||||
Net cash provided by operations | 1,888 | 2,119 | 1,341 | ||||||||
Financing cash flows: | |||||||||||
Purchase of treasury shares | (1,400 | ) | (800 | ) | (550 | ) | |||||
Proceeds from debt | 1,091 | 1,386 | 547 | ||||||||
Repayments of debt | (61 | ) | (331 | ) | (260 | ) | |||||
Payments for early extinguishment of debt | — | (765 | ) | (274 | ) | ||||||
Shares withheld for taxes on vested units – treasury shares | (49 | ) | (64 | ) | (79 | ) | |||||
Issuance of common stock from treasury shares | 224 | 263 | 352 | ||||||||
Payments of deferred and contingent consideration for acquisitions | (49 | ) | (55 | ) | (9 | ) | |||||
Distributions of non-controlling interests | (30 | ) | (20 | ) | (28 | ) | |||||
Dividends paid | (632 | ) | (582 | ) | (533 | ) | |||||
Net cash used for financing activities | (906 | ) | (968 | ) | (834 | ) | |||||
Investing cash flows: | |||||||||||
Capital expenditures | (325 | ) | (368 | ) | (401 | ) | |||||
Net (purchases) sales of long-term investments | (65 | ) | 6 | 93 | |||||||
Purchase of equity investment | — | (304 | ) | — | |||||||
Proceeds from sales of fixed assets | 2 | 3 | 5 | ||||||||
Dispositions | 71 | — | 5 | ||||||||
Acquisitions | (952 | ) | (554 | ) | (142 | ) | |||||
Other, net | 4 | (5 | ) | (6 | ) | ||||||
Net cash used for investing activities | (1,265 | ) | (1,222 | ) | (446 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (301 | ) | (274 | ) | (59 | ) | |||||
(Decrease) increase in cash and cash equivalents | (584 | ) | (345 | ) | 2 | ||||||
Cash and cash equivalents at beginning of period | 1,958 | 2,303 | 2,301 | ||||||||
Cash and cash equivalents at end of period | $ | 1,374 | $ | 1,958 | $ | 2,303 |
For the Years Ended December 31, | |||||||||||
(In millions, except per share figures) | 2015 | 2014 | 2013 | ||||||||
COMMON STOCK | |||||||||||
Balance, beginning and end of year | $ | 561 | $ | 561 | $ | 561 | |||||
ADDITIONAL PAID-IN CAPITAL | |||||||||||
Balance, beginning of year | $ | 930 | $ | 1,028 | $ | 1,107 | |||||
Change in accrued stock compensation costs | 16 | (15 | ) | (22 | ) | ||||||
Issuance of shares under stock compensation plans and employee stock purchase plans and related tax impact | (85 | ) | (83 | ) | (57 | ) | |||||
Balance, end of period | $ | 861 | $ | 930 | $ | 1,028 | |||||
RETAINED EARNINGS | |||||||||||
Balance, beginning of year | $ | 10,335 | $ | 9,452 | $ | 8,628 | |||||
Net income attributable to the Company | 1,599 | 1,465 | 1,357 | ||||||||
Dividend equivalents declared - (per share amounts: $1.18 in 2015, $1.06 in 2014, and $0.96 in 2013) | (4 | ) | (3 | ) | (6 | ) | |||||
Dividends declared – (per share amounts: $1.18 in 2015, $1.06 in 2014, and $0.96 in 2013) | (628 | ) | (579 | ) | (527 | ) | |||||
Balance, end of period | $ | 11,302 | $ | 10,335 | $ | 9,452 | |||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||
Balance, beginning of year | $ | (3,847 | ) | $ | (2,621 | ) | $ | (3,307 | ) | ||
Other comprehensive (loss) income, net of tax | (373 | ) | (1,226 | ) | 686 | ||||||
Balance, end of period | $ | (4,220 | ) | $ | (3,847 | ) | $ | (2,621 | ) | ||
TREASURY SHARES | |||||||||||
Balance, beginning of year | $ | (925 | ) | $ | (515 | ) | $ | (447 | ) | ||
Issuance of shares under stock compensation plans and employee stock purchase plans | 334 | 387 | 481 | ||||||||
Issuance of shares for acquisitions | — | 3 | 1 | ||||||||
Purchase of treasury shares | (1,400 | ) | (800 | ) | (550 | ) | |||||
Balance, end of period | $ | (1,991 | ) | $ | (925 | ) | $ | (515 | ) | ||
NON-CONTROLLING INTERESTS | |||||||||||
Balance, beginning of year | $ | 79 | $ | 70 | $ | 64 | |||||
Net income attributable to non-controlling interests | 37 | 32 | 28 | ||||||||
Distributions | (30 | ) | (20 | ) | (28 | ) | |||||
Other changes | 3 | (3 | ) | 6 | |||||||
Balance, end of period | $ | 89 | $ | 79 | $ | 70 | |||||
TOTAL EQUITY | $ | 6,602 | $ | 7,133 | $ | 7,975 |
December 31, | ||||||||
(In millions of dollars) | 2015 | 2014 | ||||||
Furniture and equipment | $ | 1,133 | $ | 1,193 | ||||
Land and buildings | 396 | 401 | ||||||
Leasehold and building improvements | 865 | 854 | ||||||
2,394 | 2,448 | |||||||
Less-accumulated depreciation and amortization | (1,621 | ) | (1,639 | ) | ||||
$ | 773 | $ | 809 |
Basic and Diluted EPS Calculation - Continuing Operations | |||||||||||
(In millions, except per share figures) | 2015 | 2014 | 2013 | ||||||||
Net income from continuing operations | $ | 1,636 | $ | 1,471 | $ | 1,379 | |||||
Less: Net income attributable to non-controlling interests | 37 | 32 | 28 | ||||||||
$ | 1,599 | $ | 1,439 | $ | 1,351 | ||||||
Basic weighted average common shares outstanding | 531 | 545 | 549 | ||||||||
Dilutive effect of potentially issuable common shares | 5 | 8 | 9 | ||||||||
Diluted weighted average common shares outstanding | 536 | 553 | 558 | ||||||||
Average stock price used to calculate common stock equivalents | $ | 56.27 | $ | 51.15 | $ | 40.97 |
2014 | |||||||||||||||
Consolidated Balance Sheet | As Previously Reported | Change in Deferred Tax Presentation | Change in Prepaid Debt Fees Presentation | As Amended | |||||||||||
Current deferred tax asset | $ | 521 | $ | (521 | ) | $ | — | $ | — | ||||||
Other current assets | 199 | — | (1 | ) | 198 | ||||||||||
Total current assets | 6,055 | (521 | ) | (1 | ) | 5,533 | |||||||||
Deferred tax assets | 876 | 482 | — | 1,358 | |||||||||||
Other assets | 1,200 | — | (7 | ) | 1,193 | ||||||||||
Total assets | 17,840 | (39 | ) | (8 | ) | 17,793 | |||||||||
Accrued income taxes | 178 | (28 | ) | — | 150 | ||||||||||
Total current liabilities | 3,705 | (28 | ) | — | 3,677 | ||||||||||
Long-term debt | 3,376 | — | (8 | ) | 3,368 | ||||||||||
Other liabilities | 1,041 | (11 | ) | — | 1,030 | ||||||||||
Total liabilities and equity | $ | 17,840 | $ | (39 | ) | $ | (8 | ) | $ | 17,793 | |||||
Consolidated Statement of Cash Flows | |||||||||||||||
Changes in assets and liabilities: | |||||||||||||||
Other current assets | $ | (32 | ) | $ | 39 | $ | 1 | $ | 8 | ||||||
Other assets | 25 | (18 | ) | 6 | 13 | ||||||||||
Accrued income taxes | 43 | (10 | ) | — | 33 | ||||||||||
Other liabilities | (185 | ) | (11 | ) | — | (196 | ) | ||||||||
Net cash provided by operations | 2,112 | — | 7 | 2,119 | |||||||||||
Proceeds from debt | 1,393 | — | (7 | ) | 1,386 | ||||||||||
Net cash used for financing activities | $ | (961 | ) | $ | — | $ | (7 | ) | $ | (968 | ) |
2013 | |||||||||||
As Previously Reported | Change in Deferred Tax Presentation | As Amended | |||||||||
Consolidated Statement of Cash Flows | |||||||||||
Changes in assets and liabilities: | |||||||||||
Other current assets | $ | (70 | ) | $ | 71 | $ | 1 | ||||
Other assets | (75 | ) | (66 | ) | (141 | ) | |||||
Accrued income taxes | 43 | — | 43 | ||||||||
Other liabilities | 13 | (5 | ) | 8 | |||||||
Net cash provided by operations | 1,341 | — | 1,341 | ||||||||
Proceeds from debt | 547 | — | 547 | ||||||||
Net cash used for financing activities | $ | (834 | ) | $ | — | $ | (834 | ) |
(In millions of dollars) | 2015 | 2014 | 2013 | ||||||||
Assets acquired, excluding cash | $ | 1,327 | $ | 815 | $ | 217 | |||||
Liabilities assumed | (199 | ) | (64 | ) | (53 | ) | |||||
Contingent/deferred purchase consideration | (176 | ) | (197 | ) | (39 | ) | |||||
Net cash outflow for current year acquisitions | 952 | 554 | 125 | ||||||||
Purchase of other intangibles | — | — | 2 | ||||||||
Net cash outflow for acquisitions | $ | 952 | $ | 554 | $ | 127 |
(In millions of dollars) | 2015 | 2014 | 2013 | ||||||||
Interest paid | $ | 146 | $ | 172 | $ | 170 | |||||
Income taxes paid, net of refunds | $ | 433 | $ | 426 | $ | 360 |
For the Years Ended December 31, | |||||||||||
(In millions of dollars) | 2015 | 2014 | 2013 | ||||||||
Balance at beginning of year | $ | 95 | $ | 98 | $ | 106 | |||||
Provision charged to operations | 14 | 20 | 16 | ||||||||
Accounts written-off, net of recoveries | (18 | ) | (17 | ) | (19 | ) | |||||
Effect of exchange rate changes and other | (4 | ) | (6 | ) | (5 | ) | |||||
Balance at end of year | $ | 87 | $ | 95 | $ | 98 |
(In millions of dollars) | Unrealized Investment Gains | Pension/Post-Retirement Plans Gains (Losses) | Foreign Currency Translation Adjustments | Total | |||||||||||
Balance as of January 1, 2015 | $ | 5 | $ | (3,393 | ) | $ | (459 | ) | $ | (3,847 | ) | ||||
Other comprehensive income (loss) before reclassifications | 1 | 101 | (643 | ) | (541 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 168 | — | 168 | |||||||||||
Net current period other comprehensive income (loss) | 1 | 269 | (643 | ) | (373 | ) | |||||||||
Balance as of December 31, 2015 | $ | 6 | $ | (3,124 | ) | $ | (1,102 | ) | $ | (4,220 | ) |
(In millions of dollars) | Unrealized Investment Gains | Pension/Post-Retirement Plans Gains (Losses) | Foreign Currency Translation Adjustments | Total | |||||||||||
Balance as of January 1, 2014 | $ | 5 | $ | (2,682 | ) | $ | 56 | $ | (2,621 | ) | |||||
Other comprehensive loss before reclassifications | — | (816 | ) | (515 | ) | (1,331 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 105 | — | 105 | |||||||||||
Net current period other comprehensive loss | — | (711 | ) | (515 | ) | (1,226 | ) | ||||||||
Balance as of December 31, 2014 | $ | 5 | $ | (3,393 | ) | $ | (459 | ) | $ | (3,847 | ) |
For the Year Ended December 31, | 2015 | ||||||||
(In millions of dollars) | Pre-Tax | Tax (Credit) | Net of Tax | ||||||
Foreign currency translation adjustments | $ | (639 | ) | $ | 4 | $ | (643 | ) | |
Unrealized investment gains | 1 | — | 1 | ||||||
Pension/post-retirement plans: | |||||||||
Amortization of losses (gains) included in net periodic pension cost: | |||||||||
Prior service credits (a) | (1 | ) | — | (1 | ) | ||||
Net actuarial losses (a) | 271 | 96 | 175 | ||||||
Subtotal | 270 | 96 | 174 | ||||||
Effect of curtailment | (3 | ) | — | (3 | ) | ||||
Plan Termination | (6 | ) | (3 | ) | (3 | ) | |||
Net losses arising during period | (125 | ) | (62 | ) | (63 | ) | |||
Foreign currency translation adjustments | 214 | 43 | 171 | ||||||
Other | (13 | ) | (6 | ) | (7 | ) | |||
Pension/post-retirement plans gains | 337 | 68 | 269 | ||||||
Other comprehensive (loss) income | $ | (301 | ) | $ | 72 | $ | (373 | ) |
For the Year Ended December 31, | 2014 | ||||||||
(In millions of dollars) | Pre-Tax | Tax (Credit) | Net of Tax | ||||||
Foreign currency translation adjustments | $ | (527 | ) | $ | (12 | ) | $ | (515 | ) |
Pension/post-retirement plans: | |||||||||
Amortization of losses (gains) included in net periodic pension cost: | |||||||||
Prior service credits (a) | (16 | ) | (5 | ) | (11 | ) | |||
Net actuarial losses (a) | 242 | 74 | 168 | ||||||
Subtotal | 226 | 69 | 157 | ||||||
Effect of curtailment | (65 | ) | (13 | ) | (52 | ) | |||
Net losses arising during period | (1,418 | ) | (466 | ) | (952 | ) | |||
Foreign currency translation adjustments | 180 | 39 | 141 | ||||||
Other adjustments | (8 | ) | (3 | ) | (5 | ) | |||
Pension/post-retirement plans losses | (1,085 | ) | (374 | ) | (711 | ) | |||
Other comprehensive loss | $ | (1,612 | ) | $ | (386 | ) | $ | (1,226 | ) |
For the Year Ended December 31, | 2013 | ||||||||
(In millions of dollars) | Pre-Tax | Tax (Credit) | Net of Tax | ||||||
Foreign currency translation adjustments | $ | (86 | ) | $ | (2 | ) | $ | (84 | ) |
Unrealized investment gains | 1 | — | 1 | ||||||
Pension/post-retirement plans: | |||||||||
Amortization of losses (gains) included in net periodic pension cost: | |||||||||
Prior service credits (a) | (22 | ) | (8 | ) | (14 | ) | |||
Net actuarial losses (a) | 317 | 108 | 209 | ||||||
Subtotal | 295 | 100 | 195 | ||||||
Net gains arising during period | 898 | 339 | 559 | ||||||
Foreign currency translation adjustments | 27 | 8 | 19 | ||||||
Other | (7 | ) | (3 | ) | (4 | ) | |||
Pension/post-retirement plans gains | 1,213 | 444 | 769 | ||||||
Other comprehensive income | $ | 1,128 | $ | 442 | $ | 686 |
(In millions of dollars) | December 31, 2015 | December 31, 2014 | |||||
Foreign currency translation adjustments (net of deferred tax asset of $8 and $5 in 2015 and 2014, respectively) | $ | (1,102 | ) | $ | (459 | ) | |
Net unrealized investment gains (net of deferred tax liability of $2 in both 2015 and 2014) | 6 | 5 | |||||
Net charges related to pension / post-retirement plans (net of deferred tax asset of $1,519 and $1,587 in 2015 and 2014, respectively) | (3,124 | ) | (3,393 | ) | |||
$ | (4,220 | ) | $ | (3,847 | ) |
• | January – Marsh acquired INGESEG S.A., an insurance brokerage located in Argentina. |
• | May – Marsh acquired Sylvite Financial Services, Inc., a Canada-based insurance consulting firm and Sumitomo Life Insurance Agency America, Inc., an employee benefits brokerage and consulting firm providing employee benefit and other services to U.S.-based subsidiaries of Japanese companies. |
• | June – Marsh & McLennan Agency ("MMA") acquired MHBT, Inc., a Texas-based insurance broker and Marsh acquired SIS Co. Ltd, a Korea-based insurance broker and advisor. |
• | July – MMA acquired Vezina, a Canada-based independent insurance brokerage firm, Tequesta Insurance Advisors, an employee benefits insurance provider based in Florida, Cline Wood Agency, a Kansas City-based independent specialty insurance agency and J.W. Terrill, a Missouri-based independent insurance agency. Marsh acquired SMEI Group Ltd., a U.K.-based insurance broker providing specialist commercial insurance to small and medium-sized firms. |
• | August – Marsh acquired Dovetail Insurance, a leading provider of insurance technology services to the U.S. small commercial market. |
• | October – MMA acquired Dawson Insurance Agency, a North Dakota-based agency providing commercial and personal insurance, surety bonds, safety and loss control programs, and employee benefits services. |
• | December – Marsh acquired Jelf Group, PLC, a U.K.-based insurance broking and financial consulting firm. |
• | February – Oliver Wyman acquired TeamSAI, a Georgia-based provider of consulting and technical services to the transportation industry, and Mercer acquired Strategic Capital Management AG, a Switzerland-based institutional investment advisor. |
• | June – Mercer acquired Kepler Associates, a U.K.-based executive remuneration specialist. |
• | August – OWG acquired the Hong Kong and Shanghai franchises of OC&C Strategy Consultants. |
• | September – Mercer acquired Comptryx, a global pay and workforce metrics business specializing in the technology sector. |
• | November – Mercer acquired HR Business Solutions (Asia) Limited, a Hong Kong-based compensation and employee benefits consulting firm, and Gama Consultores Associados Ltda, a Brazil-based retirement consulting firm. |
• | December – Mercer acquired CPSG Partners, a Workday Services partner assisting clients worldwide to maximize the value of Workday Financial Management and Human Capital Management. |
(In millions) | 2015 | ||
Cash | $ | 1,004 | |
Estimated fair value of deferred/contingent consideration | 176 | ||
Total consideration | $ | 1,180 | |
Allocation of purchase price: | |||
Cash and cash equivalents | $ | 52 | |
Accounts receivable, net | 39 | ||
Other current assets | 5 | ||
Property, plant, and equipment | 11 | ||
Other intangible assets | 486 | ||
Goodwill | 783 | ||
Other assets | 3 | ||
Total assets acquired | 1,379 | ||
Current liabilities | 106 | ||
Other liabilities | 93 | ||
Total liabilities assumed | 199 | ||
Net assets acquired | $ | 1,180 |
Amount | Weighted Average Amortization Period | |||||
Client relationships | $ | 433 | 13 years | |||
Other (a) | 53 | 4.8 years | ||||
$ | 486 |
• | January – MMA acquired Barney & Barney, LLC, a San Diego-based insurance broking firm that provides insurance, risk management and employee benefits solutions to businesses and individuals throughout the U.S. and abroad, Great Lakes Employee Benefits Services, Inc., an employee group benefits consulting and brokerage firm based in Michigan, and Bond Network, Inc., a surety bonding agency based in North Carolina. |
• | February – Marsh acquired Central Insurance Services, an independent insurance broker in Scotland that provides insurance broking and risk advisory services to companies of all sizes across industry sectors. |
• | March – MMA acquired Capstone Insurance Services, LLC, an agency that provides property-casualty insurance and risk management solutions to businesses and individuals throughout South Carolina. |
• | May – MMA acquired Kinker-Eveleigh Insurance Agency, an Ohio-based agency specializing in property-casualty and employee benefits solutions, VISICOR, a full-service employee benefits brokerage and consulting firm based in Texas, and Senn Dunn Insurance, a full-service insurance brokerage located in North Carolina. |
• | August – Marsh acquired Seguros Morrice y Urrutia S.A., an insurance broker based in Panama City, Panama. |
• | September – Marsh acquired Kocisko Insurance Brokers, Inc., a full-service commercial insurance brokerage located in Montreal, Quebec. |
• | October – MMA acquired NuWest Insurance Services, Inc., a California-based property-casualty agency. |
• | November – Marsh acquired Torrent Technologies, Inc., a Montana-based flood insurance specialist. |
• | December – Marsh acquired Seafire Insurance Services, LLC, a Kansas-based managing general underwriter, and Trade Insure NV, a leading distributor of credit insurance policies in Belgium, and MMA acquired The Benefit Planning Group, Inc., a North Carolina-based employee benefit consulting firm. |
• | February – Mercer acquired Transition Assist, a retiree exchange specializing in helping retirees in employer-sponsored plans select Medicare supplemental health care insurance. |
• | September – Oliver Wyman acquired Bonfire Communications, an agency specializing in employee engagement and internal communications based in San Francisco, California. |
• | November – Mercer acquired AUSREM, a remuneration research and workforce consulting specialist based in Australia, and Jeitosa Group International, a global HR business consultancy and IT systems integration firm. |
• | December – Mercer acquired Denarius, a compensation and benefits survey and information products consulting firm based in Chile, and Oliver Wyman acquired OC&C Strategy Consultants (Boston) LLC (part of the OC&C network), a Boston-based consulting firm specializing in the business media, information services and education sectors. |
Years Ended December 31, | |||||||||||
(In millions, except per share data) | 2015 | 2014 | 2013 | ||||||||
Revenue | $ | 13,185 | $ | 13,395 | $ | 12,550 | |||||
Income from continuing operations | $ | 1,676 | $ | 1,475 | $ | 1,395 | |||||
Net income attributable to the Company | $ | 1,639 | $ | 1,469 | $ | 1,373 | |||||
Basic net income per share: | |||||||||||
– Continuing operations | $ | 3.09 | $ | 2.65 | $ | 2.49 | |||||
– Net income attributable to the Company | $ | 3.09 | $ | 2.69 | $ | 2.50 | |||||
Diluted net income per share: | |||||||||||
– Continuing operations | $ | 3.05 | $ | 2.61 | $ | 2.45 | |||||
– Net income attributable to the Company | $ | 3.05 | $ | 2.66 | $ | 2.46 |
For the Years Ended December 31, | |||||||||||
(In millions of dollars) | 2015 | 2014 | 2013 | ||||||||
Income (loss) from discontinued operations, net of tax | $ | — | $ | — | $ | — | |||||
Disposals of discontinued operations | (5 | ) | 42 | (4 | ) | ||||||
Income tax (credit) expense | (5 | ) | 16 | (10 | ) | ||||||
Disposals of discontinued operations, net of tax | — | 26 | 6 | ||||||||
Discontinued operations, net of tax | $ | — | $ | 26 | $ | 6 | |||||
Discontinued operations, net of tax per share | |||||||||||
– Basic | $ | — | $ | 0.05 | $ | 0.01 | |||||
– Diluted | $ | — | $ | 0.04 | $ | 0.01 |
(In millions of dollars) | 2015 | 2014 | |||||
Balance as of January 1, as reported | $ | 7,241 | $ | 6,893 | |||
Goodwill acquired | 783 | 472 | |||||
Other adjustments(a) | (135 | ) | (124 | ) | |||
Balance at December 31, | $ | 7,889 | $ | 7,241 |
(a) | Primarily due to the impact of foreign exchange in both years. |
(In millions of dollars) | 2015 | 2014 | |||||||||||||||||||||
Gross Cost | Accumulated Amortization | Net Carrying Amount | Gross Cost | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Client relationships | $ | 1,281 | $ | 347 | $ | 934 | $ | 1,000 | $ | 391 | $ | 609 | |||||||||||
Other (a) | 176 | 74 | 102 | 177 | 94 | 83 | |||||||||||||||||
Amortized intangibles | $ | 1,457 | $ | 421 | $ | 1,036 | $ | 1,177 | $ | 485 | $ | 692 |
For the Years Ending December 31, | |||
(In millions of dollars) | |||
2016 | $ | 128 | |
2017 | 120 | ||
2018 | 118 | ||
2019 | 112 | ||
2020 | 105 | ||
Subsequent years | 453 | ||
$ | 1,036 |
For the Years Ended December 31, | |||||||||||
(In millions of dollars) | 2015 | 2014 | 2013 | ||||||||
Income before income taxes: | |||||||||||
U.S. | $ | 702 | $ | 313 | $ | 407 | |||||
Other | 1,605 | 1,744 | 1,566 | ||||||||
$ | 2,307 | $ | 2,057 | $ | 1,973 | ||||||
The expense for income taxes is comprised of: | |||||||||||
Income taxes: | |||||||||||
Current– | |||||||||||
U.S. Federal | $ | 90 | $ | 80 | $ | 102 | |||||
Other national governments | 385 | 369 | 264 | ||||||||
U.S. state and local | 52 | 26 | 45 | ||||||||
527 | 475 | 411 | |||||||||
Deferred– | |||||||||||
U.S. Federal | 125 | 27 | 12 | ||||||||
Other national governments | 15 | 62 | 149 | ||||||||
U.S. state and local | 4 | 22 | 22 | ||||||||
144 | 111 | 183 | |||||||||
Total income taxes | $ | 671 | $ | 586 | $ | 594 |
December 31, | |||||||
(In millions of dollars) | 2015 | 2014 | |||||
Deferred tax assets: | |||||||
Accrued expenses not currently deductible | $ | 586 | $ | 572 | |||
Differences related to non-U.S. operations (a) | 120 | 119 | |||||
Accrued retirement benefits U.S. | 630 | 638 | |||||
Net operating losses (b) | 70 | 57 | |||||
Income currently recognized for tax | 70 | 75 | |||||
Foreign tax credit carryforwards | 20 | 109 | |||||
Other | 49 | 84 | |||||
$ | 1,545 | $ | 1,654 |
Deferred tax liabilities: | |||||||
Differences related to non-U.S. operations | $ | 176 | $ | 131 | |||
Depreciation and amortization | 368 | 307 | |||||
Accrued retirement & postretirement benefits - non-U.S. operations | 94 | 41 | |||||
Other | 6 | 5 | |||||
$ | 644 | $ | 484 |
(a) | Net of valuation allowances of $9 million in 2015 and $15 million in 2014. |
(b) | Net of valuation allowances of $19 million in 2015 and $82 million in 2014. |
December 31, | |||||||
(In millions of dollars) | 2015 | 2014 | |||||
Balance sheet classifications: | |||||||
Deferred tax assets | $ | 1,138 | $ | 1,358 | |||
Other liabilities | $ | 237 | $ | 188 |
For the Years Ended December 31, | 2015 | 2014 | 2013 | |||||
U.S. Federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
U.S. state and local income taxes—net of U.S. Federal income tax benefit | 1.6 | 1.7 | 2.1 | |||||
Differences related to non-U.S. operations | (8.0 | ) | (7.5 | ) | (6.0 | ) | ||
Other | 0.5 | (0.7 | ) | (1.0 | ) | |||
Effective tax rate | 29.1 | % | 28.5 | % | 30.1 | % |
(In millions of dollars) | 2015 | 2014 | 2013 | ||||||||
Balance at January 1, | $ | 97 | $ | 128 | $ | 117 | |||||
Additions, based on tax positions related to current year | 3 | 13 | 16 | ||||||||
Additions for tax positions of prior years | 22 | 3 | 35 | ||||||||
Reductions for tax positions of prior years | (10 | ) | (29 | ) | (7 | ) | |||||
Settlements | (20 | ) | (4 | ) | (3 | ) | |||||
Lapses in statutes of limitation | (18 | ) | (14 | ) | (30 | ) | |||||
Balance at December 31, | $ | 74 | $ | 97 | $ | 128 |
Pension Benefits | Postretirement Benefits | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Weighted average assumptions: | |||||||||||
Discount rate (for expense) | 3.83 | % | 4.82 | % | 3.87 | % | 4.92 | % | |||
Expected return on plan assets | 7.23 | % | 7.52 | % | — | — | |||||
Rate of compensation increase (for expense) | 2.42 | % | 2.64 | % | — | — | |||||
Discount rate (for benefit obligation) | 4.11 | % | 3.79 | % | 4.12 | % | 4.08 | % | |||
Rate of compensation increase (for benefit obligation) | 2.44 | % | 2.42 | % | — | — |
Combined U.S. and significant non-U.S. Plans | Pension | Postretirement | |||||||||||||||||||||
For the Years Ended December 31, | Benefits | Benefits | |||||||||||||||||||||
(In millions of dollars) | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||
Service cost | $ | 196 | $ | 213 | $ | 252 | $ | 3 | $ | 4 | $ | 5 | |||||||||||
Interest cost | 587 | 641 | 581 | 5 | 11 | 11 | |||||||||||||||||
Expected return on plan assets | (977 | ) | (990 | ) | (911 | ) | — | — | — | ||||||||||||||
Amortization of prior service (credit) cost | (1 | ) | (16 | ) | (22 | ) | 3 | — | — | ||||||||||||||
Recognized actuarial loss (gain) | 271 | 243 | 315 | (1 | ) | (1 | ) | 2 | |||||||||||||||
Net periodic benefit cost | $ | 76 | $ | 91 | $ | 215 | $ | 10 | $ | 14 | $ | 18 | |||||||||||
Curtailment (loss) gain | 5 | (65 | ) | — | — | — | — | ||||||||||||||||
Plan termination | — | — | — | (128 | ) | — | — | ||||||||||||||||
Settlement loss | 1 | — | — | — | — | — | |||||||||||||||||
Total cost | $ | 82 | $ | 26 | $ | 215 | $ | (118 | ) | $ | 14 | $ | 18 |
U.S. Pension Benefits | U.S. Postretirement Benefits | ||||||||||||||
(In millions of dollars) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Change in benefit obligation: | |||||||||||||||
Benefit obligation at beginning of year | $ | 5,924 | $ | 4,827 | $ | 177 | $ | 158 | |||||||
Service cost | 114 | 91 | 1 | 2 | |||||||||||
Interest cost | 254 | 253 | 2 | 7 | |||||||||||
Employee contributions | — | — | 3 | 13 | |||||||||||
Plan amendments | — | — | — | (4 | ) | ||||||||||
Plan termination | — | — | (128 | ) | — | ||||||||||
Actuarial (gain) loss | (392 | ) | 955 | (5 | ) | 21 | |||||||||
Medicare part D subsidy | — | — | — | 1 | |||||||||||
Benefits paid | (215 | ) | (202 | ) | (10 | ) | (21 | ) | |||||||
Benefit obligation, December 31 | $ | 5,685 | $ | 5,924 | $ | 40 | $ | 177 | |||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 4,516 | $ | 4,279 | $ | 18 | $ | — | |||||||
Plan combination | — | — | — | — | |||||||||||
Actual return on plan assets | (170 | ) | 414 | — | — | ||||||||||
Employer contributions | 29 | 25 | 4 | 13 | |||||||||||
Employee contributions | — | — | 3 | 13 | |||||||||||
Medicare part D subsidy | — | — | — | 1 | |||||||||||
Benefits paid | (215 | ) | (202 | ) | (10 | ) | (21 | ) | |||||||
Other | — | — | (12 | ) | 12 | ||||||||||
Fair value of plan assets, December 31 | $ | 4,160 | $ | 4,516 | $ | 3 | $ | 18 | |||||||
Net funded status, December 31 | $ | (1,525 | ) | $ | (1,408 | ) | $ | (37 | ) | $ | (159 | ) | |||
Amounts recognized in the consolidated balance sheets: | |||||||||||||||
Current liabilities | $ | (26 | ) | $ | (25 | ) | $ | (2 | ) | $ | (2 | ) | |||
Non-current liabilities | (1,499 | ) | (1,383 | ) | (35 | ) | (157 | ) | |||||||
Net liability recognized, December 31 | $ | (1,525 | ) | $ | (1,408 | ) | $ | (37 | ) | $ | (159 | ) | |||
Amounts recognized in other comprehensive income (loss): | |||||||||||||||
Prior service (cost) credit | $ | — | $ | — | $ | (7 | ) | $ | 4 | ||||||
Net actuarial (loss) gain | (1,754 | ) | (1,749 | ) | 13 | 2 | |||||||||
Total recognized accumulated other comprehensive (loss) income, December 31 | $ | (1,754 | ) | $ | (1,749 | ) | $ | 6 | $ | 6 | |||||
Cumulative employer contributions in excess (less than) net periodic cost | 229 | 341 | (43 | ) | (165 | ) | |||||||||
Net amount recognized in consolidated balance sheet | $ | (1,525 | ) | $ | (1,408 | ) | $ | (37 | ) | $ | (159 | ) | |||
Accumulated benefit obligation at December 31 | $ | 5,600 | $ | 5,825 | $ | — | $ | — |
U.S. Pension Benefits | U.S. Postretirement Benefits | ||||||||||||||
(In millions of dollars) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Reconciliation of prior service credit (cost) recognized in accumulated other comprehensive income (loss): | |||||||||||||||
Beginning balance | $ | — | $ | 7 | $ | 4 | $ | — | |||||||
Recognized as component of net periodic benefit cost | — | (7 | ) | 3 | — | ||||||||||
Plan termination | — | — | (14 | ) | — | ||||||||||
Plan amendment | — | — | — | 4 | |||||||||||
Prior service (cost) credit, December 31 | $ | — | $ | — | $ | (7 | ) | $ | 4 |
U.S. Pension Benefits | U.S. Postretirement Benefits | ||||||||||||||
(In millions of dollars) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Reconciliation of net actuarial (loss) gain recognized in accumulated other comprehensive income (loss): | |||||||||||||||
Beginning balance | $ | (1,749 | ) | $ | (974 | ) | $ | 2 | $ | 13 | |||||
Recognized as component of net periodic benefit cost (credit) | 146 | 112 | (2 | ) | (2 | ) | |||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||||||||||||||
Other | — | — | 8 | — | |||||||||||
Liability experience | 392 | (955 | ) | 5 | (21 | ) | |||||||||
Asset experience | (543 | ) | 68 | — | 12 | ||||||||||
Total (loss) gain recognized as change in plan assets and benefit obligations | (151 | ) | (887 | ) | 5 | (9 | ) | ||||||||
Net actuarial (loss) gain, December 31 | $ | (1,754 | ) | $ | (1,749 | ) | $ | 13 | $ | 2 |
For the Years Ended December 31, | U.S. Pension Benefits | U.S. Postretirement Benefits | |||||||||||||||||||||
(In millions of dollars) | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ | 146 | $ | 885 | $ | (696 | ) | $ | (138 | ) | $ | 14 | $ | (5 | ) |
U.S. Pension Benefits | U.S. Postretirement Benefits | ||||||
(In millions of dollars) | 2016 | 2016 | |||||
Prior service credit | $ | — | $ | (4 | ) | ||
Net actuarial loss | 71 | 2 | |||||
Projected cost (credit) | $ | 71 | $ | (2 | ) |
U.S. Pension Benefits | U.S. Postretirement Benefits | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Weighted average assumptions: | |||||||||||
Discount rate (for expense) | 4.41 | % | 5.30 | % | 3.90 | % | 4.99 | % | |||
Expected return on plan assets | 8.75 | % | 8.75 | % | — | — | |||||
Rate of compensation increase (for expense) | 2.00 | % | 2.00 | % | — | — | |||||
Discount rate (for benefit obligation) | 4.74 | % | 4.30 | % | 4.36 | % | 4.19 | % | |||
Rate of compensation increase (for benefit obligation) | 2.00 | % | 2.00 | % | — | — |
U.S. Plans only | Pension Benefits | Postretirement Benefits | |||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||
(In millions of dollars) | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||
Service cost | $ | 114 | $ | 91 | $ | 104 | $ | 1 | $ | 2 | $ | 3 | |||||||||||
Interest cost | 254 | 253 | 229 | 2 | 7 | 7 | |||||||||||||||||
Expected return on plan assets | (373 | ) | (346 | ) | (324 | ) | — | — | — | ||||||||||||||
Amortization of prior service (credit) cost | — | (7 | ) | (16 | ) | 3 | — | — | |||||||||||||||
Recognized actuarial loss (gain) | 146 | 112 | 207 | (2 | ) | (2 | ) | — | |||||||||||||||
Net periodic benefit cost (credit) | $ | 141 | $ | 103 | $ | 200 | $ | 4 | $ | 7 | $ | 10 | |||||||||||
Plan termination | — | — | — | (128 | ) | — | — | ||||||||||||||||
Total cost (credit) | $ | 141 | $ | 103 | $ | 200 | $ | (124 | ) | $ | 7 | $ | 10 |
Non-U.S. Pension Benefits | Non-U.S. Postretirement Benefits | ||||||||||||||
(In millions of dollars) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Change in benefit obligation: | |||||||||||||||
Benefit obligation at beginning of year | $ | 10,018 | $ | 8,711 | $ | 93 | $ | 97 | |||||||
Service cost | 82 | 122 | 2 | 2 | |||||||||||
Interest cost | 333 | 388 | 3 | 4 | |||||||||||
Employee contributions | 8 | 10 | — | — | |||||||||||
Actuarial loss (gain) | (432 | ) | 1,619 | (6 | ) | (1 | ) | ||||||||
Plan amendments | (5 | ) | 13 | — | — | ||||||||||
Effect of settlement | (12 | ) | (11 | ) | — | — | |||||||||
Effect of curtailment | 8 | — | — | — | |||||||||||
Benefits paid | (337 | ) | (311 | ) | (3 | ) | (3 | ) | |||||||
Foreign currency changes | (632 | ) | (585 | ) | (10 | ) | (6 | ) | |||||||
Other | 45 | 62 | — | — | |||||||||||
Benefit obligation December 31 | $ | 9,076 | $ | 10,018 | $ | 79 | $ | 93 | |||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 10,410 | $ | 9,351 | $ | — | $ | — | |||||||
Actual return on plan assets | 187 | 1,756 | — | — | |||||||||||
Effect of settlement | (12 | ) | (11 | ) | — | — | |||||||||
Company contributions | 166 | 156 | 3 | 3 | |||||||||||
Employee contributions | 8 | 10 | — | — | |||||||||||
Benefits paid | (337 | ) | (311 | ) | (3 | ) | (3 | ) | |||||||
Foreign currency changes | (620 | ) | (578 | ) | — | — | |||||||||
Other | 24 | 37 | — | — | |||||||||||
Fair value of plan assets, December 31 | $ | 9,826 | $ | 10,410 | $ | — | $ | — | |||||||
Net funded status, December 31 | $ | 750 | $ | 392 | $ | (79 | ) | $ | (93 | ) | |||||
Amounts recognized in the consolidated balance sheets: | |||||||||||||||
Non-current assets | $ | 1,144 | $ | 967 | $ | — | $ | — | |||||||
Current liabilities | (5 | ) | (6 | ) | (3 | ) | (4 | ) | |||||||
Non-current liabilities | (389 | ) | (569 | ) | (76 | ) | (89 | ) | |||||||
Net asset (liability) recognized, December 31 | $ | 750 | $ | 392 | $ | (79 | ) | $ | (93 | ) | |||||
Amounts recognized in other comprehensive (loss) income: | |||||||||||||||
Prior service (cost) credit | $ | (3 | ) | $ | (2 | ) | $ | — | $ | — | |||||
Net actuarial loss | (2,887 | ) | (3,215 | ) | (6 | ) | (14 | ) | |||||||
Total recognized accumulated other comprehensive (loss) income, December 31 | $ | (2,890 | ) | $ | (3,217 | ) | $ | (6 | ) | $ | (14 | ) | |||
Cumulative employer contributions in excess (deficient) of net periodic cost | 3,640 | 3,609 | (73 | ) | (79 | ) | |||||||||
Net asset (liability) recognized in consolidated balance sheet, December 31 | $ | 750 | $ | 392 | $ | (79 | ) | $ | (93 | ) | |||||
Accumulated benefit obligation, December 31 | $ | 8,830 | $ | 9,731 | $ | — | $ | — |
Non-U.S. Pension Benefits | Non-U.S. Postretirement Benefits | ||||||||||||||
(In millions of dollars) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Reconciliation of prior service credit (cost) recognized in accumulated other comprehensive income (loss): | |||||||||||||||
Beginning balance | $ | (2 | ) | $ | 85 | $ | — | $ | — | ||||||
Recognized as component of net periodic benefit credit | (1 | ) | (9 | ) | — | — | |||||||||
Effect of curtailment | (5 | ) | (65 | ) | — | — | |||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||
Plan amendments | 5 | (13 | ) | — | — | ||||||||||
Exchange rate adjustments | — | — | — | — | |||||||||||
Prior service (cost) credit, December 31 | $ | (3 | ) | $ | (2 | ) | $ | — | $ | — |
Non-U.S. Pension Benefits | Non-U.S. Postretirement Benefits | ||||||||||||||
(In millions of dollars) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Reconciliation of net actuarial gain (loss) recognized in accumulated other comprehensive income (loss): | |||||||||||||||
Beginning balance | $ | (3,215 | ) | $ | (3,010 | ) | $ | (14 | ) | $ | (16 | ) | |||
Recognized as component of net periodic benefit cost | 125 | 131 | 1 | 1 | |||||||||||
Effect of settlement | 2 | — | — | — | |||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive (loss) income: | |||||||||||||||
Liability experience | 432 | (1,619 | ) | 6 | 1 | ||||||||||
Asset experience | (417 | ) | 1,112 | — | — | ||||||||||
Other | (20 | ) | (14 | ) | — | — | |||||||||
Total amount recognized as change in plan assets and benefit obligations | (5 | ) | (521 | ) | 6 | 1 | |||||||||
Exchange rate adjustments | 206 | 185 | 1 | — | |||||||||||
Net actuarial loss, December 31 | $ | (2,887 | ) | $ | (3,215 | ) | $ | (6 | ) | $ | (14 | ) |
For the Years Ended December 31, | Non-U.S. Pension Benefits | Non-U.S. Postretirement Benefits | |||||||||||||||||||||
(In millions of dollars) | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ | (407 | ) | $ | 201 | $ | (276 | ) | $ | (2 | ) | $ | 5 | $ | (2 | ) |
Non-U.S. Pension Benefits | Non-U.S. Postretirement Benefits | ||||||
(In millions of dollars) | 2016 | 2016 | |||||
Prior service credit | $ | 1 | $ | — | |||
Net actuarial loss | (100 | ) | — | ||||
Projected cost | $ | (99 | ) | $ | — |
Non-U.S. Pension Benefits | Non-U.S. Postretirement Benefits | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Weighted average assumptions: | |||||||||||
Discount rate (for expense) | 3.49 | % | 4.55 | % | 3.85 | % | 4.80 | % | |||
Expected return on plan assets | 6.57 | % | 6.95 | % | — | — | |||||
Rate of compensation increase (for expense) | 2.67 | % | 2.99 | % | — | — | |||||
Discount rate (for benefit obligation) | 3.71 | % | 3.49 | % | 4.00 | % | 3.85 | % | |||
Rate of compensation increase (for benefit obligation) | 2.72 | % | 2.67 | % | — | — |
For the Years Ended December 31, | Non-U.S. Pension Benefits | Non-U.S. Postretirement Benefits | |||||||||||||||||||||
(In millions of dollars) | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||
Service cost | $ | 82 | $ | 122 | $ | 148 | $ | 2 | $ | 2 | $ | 2 | |||||||||||
Interest cost | 333 | 388 | 352 | 3 | 4 | 4 | |||||||||||||||||
Expected return on plan assets | (604 | ) | (644 | ) | (587 | ) | — | — | — | ||||||||||||||
Amortization of prior service cost | (1 | ) | (9 | ) | (6 | ) | — | — | — | ||||||||||||||
Recognized actuarial loss | 125 | 131 | 108 | 1 | 1 | 2 | |||||||||||||||||
Net periodic benefit (credit) cost | (65 | ) | (12 | ) | 15 | 6 | 7 | 8 | |||||||||||||||
Settlement loss | 1 | — | — | — | — | — | |||||||||||||||||
Curtailment loss (gain) | 5 | (65 | ) | — | — | — | — | ||||||||||||||||
Total (credit) cost | $ | (59 | ) | $ | (77 | ) | $ | 15 | $ | 6 | $ | 7 | $ | 8 |
(In millions of dollars) | 1 Percentage Point Increase | 1 Percentage Point Decrease | |||||
Effect on total of service and interest cost components | $ | 1 | $ | (1 | ) | ||
Effect on postretirement benefit obligation | $ | 7 | $ | (6 | ) |
For the Years Ended December 31, | Pension Benefits | Postretirement Benefits | |||||||||||||
(In millions of dollars) | U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||
2016 | $ | 231 | $ | 260 | $ | 4 | $ | 3 | |||||||
2017 | $ | 247 | $ | 274 | $ | 4 | $ | 4 | |||||||
2018 | $ | 264 | $ | 287 | $ | 4 | $ | 4 | |||||||
2019 | $ | 274 | $ | 299 | $ | 4 | $ | 4 | |||||||
2020 | $ | 286 | $ | 314 | $ | 4 | $ | 4 | |||||||
2021-2025 | $ | 1,586 | $ | 1,837 | $ | 16 | $ | 19 |
Fair Value Measurements at December 31, 2015 | |||||||||||||||
Assets (In millions of dollars) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||
Common/collective trusts | $ | 175 | $ | 6,591 | $ | 270 | $ | 7,036 | |||||||
Corporate obligations | — | 2,651 | 1 | 2,652 | |||||||||||
Corporate stocks | 1,844 | 6 | 2 | 1,852 | |||||||||||
Private equity/partnerships | — | — | 710 | 710 | |||||||||||
Government securities | 10 | 415 | — | 425 | |||||||||||
Real estate | — | 8 | 434 | 442 | |||||||||||
Short-term investment funds | 312 | 4 | — | 316 | |||||||||||
Company common stock | 222 | — | — | 222 | |||||||||||
Other investments | 13 | 47 | 257 | 317 | |||||||||||
Total investments | $ | 2,576 | $ | 9,722 | $ | 1,674 | $ | 13,972 |
Fair Value Measurements at December 31, 2014 | |||||||||||||||
Assets (In millions of dollars) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||
Common/collective trusts | $ | 172 | $ | 6,766 | $ | 184 | $ | 7,122 | |||||||
Corporate obligations | — | 2,938 | 3 | 2,941 | |||||||||||
Corporate stocks | 2,087 | 6 | 1 | 2,094 | |||||||||||
Private equity/partnerships | — | — | 727 | 727 | |||||||||||
Government securities | — | 371 | — | 371 | |||||||||||
Real estate | — | 6 | 375 | 381 | |||||||||||
Short-term investment funds | 724 | 12 | — | 736 | |||||||||||
Company common stock | 229 | — | — | 229 | |||||||||||
Other investments | 16 | 23 | 239 | 278 | |||||||||||
Total investments | $ | 3,228 | $ | 10,122 | $ | 1,529 | $ | 14,879 |
Assets (In millions) | Fair Value, January 1, 2015 | Purchases | Sales | Unrealized Gain/ (Loss) | Realized Gain/ (Loss) | Exchange Rate Impact | Transfers in/(out) and Other | Fair Value, December 31, 2015 | |||||||||||||||||||||||
Private equity/Partnerships | $ | 727 | $ | 223 | $ | (121 | ) | $ | (263 | ) | $ | 159 | $ | (15 | ) | $ | — | $ | 710 | ||||||||||||
Real estate | 375 | 50 | (1 | ) | 32 | 1 | (23 | ) | — | 434 | |||||||||||||||||||||
Other investments | 239 | 47 | (13 | ) | 14 | — | (30 | ) | — | 257 | |||||||||||||||||||||
Common/Collective trusts | 184 | 149 | (27 | ) | (6 | ) | — | (30 | ) | — | 270 | ||||||||||||||||||||
Corporate stocks | 1 | — | — | 1 | — | — | — | 2 | |||||||||||||||||||||||
Corporate obligations | 3 | — | — | — | — | — | (2 | ) | 1 | ||||||||||||||||||||||
Total assets | $ | 1,529 | $ | 469 | $ | (162 | ) | $ | (222 | ) | $ | 160 | $ | (98 | ) | $ | (2 | ) | $ | 1,674 |
Assets (In millions) | Fair Value, January 1, 2014 | Purchases | Sales | Unrealized Gain/ (Loss) | Realized Gain/ (Loss) | Exchange Rate Impact | Transfers in/(out) and Other | Fair Value, December 31, 2014 | |||||||||||||||||||||||
Private equity/Partnerships | $ | 799 | $ | 158 | $ | (185 | ) | $ | (173 | ) | $ | 137 | $ | (12 | ) | $ | 3 | $ | 727 | ||||||||||||
Real estate | 312 | 97 | (50 | ) | 19 | 16 | (19 | ) | — | 375 | |||||||||||||||||||||
Other investments | 238 | 21 | (16 | ) | 18 | — | (28 | ) | 6 | 239 | |||||||||||||||||||||
Common/Collective trusts | 151 | — | (1 | ) | 50 | — | (16 | ) | — | 184 | |||||||||||||||||||||
Corporate stocks | 1 | — | — | — | — | — | — | 1 | |||||||||||||||||||||||
Corporate obligations | 4 | 3 | (1 | ) | — | — | — | (3 | ) | 3 | |||||||||||||||||||||
Government securities | 2 | — | — | — | — | — | (2 | ) | — | ||||||||||||||||||||||
Total assets | $ | 1,507 | $ | 279 | $ | (253 | ) | $ | (86 | ) | $ | 153 | $ | (75 | ) | $ | 4 | $ | 1,529 |
2015 | 2014 | 2013 | |||
Risk-free interest rate | 1.78% | 1.88% | 1.03%-1.30% | ||
Expected life (in years) | 6.0 | 6.0 | 6.0 | ||
Expected volatility | 23.75% | 24.2% | 23.6%-24.1% | ||
Expected dividend yield | 1.97% | 2.08% | 2.48%-2.54% |
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value ($000) | |||||||||
Balance at January 1, 2015 | 17,995,082 | $ | 30.97 | |||||||||
Granted | 1,574,706 | $ | 56.84 | |||||||||
Exercised | (4,607,079 | ) | $ | 29.24 | ||||||||
Forfeited | (131,126 | ) | $ | 46.43 | ||||||||
Expired | (54,779 | ) | $ | 30.45 | ||||||||
Balance at December 31, 2015 | 14,776,804 | $ | 34.14 | 5.4 years | $ | 328,225 | ||||||
Options vested or expected to vest at December 31, 2015 | 14,584,291 | $ | 34.04 | 5.4 years | $ | 325,388 | ||||||
Options exercisable at December 31, 2015 | 10,104,569 | $ | 28.88 | 4.3 years | $ | 276,975 |
Restricted Stock Units | Performance Stock Units | ||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||
Non-vested balance at January 1, 2015 | 2,097,730 | $ | 38.74 | 868,008 | $ | 37.56 | |||||
Granted | 1,737,354 | $ | 56.81 | 210,829 | $ | 56.84 | |||||
Vested | (1,264,076 | ) | $ | 35.56 | (373,449 | ) | $ | 31.99 | |||
Forfeited | (111,715 | ) | $ | 52.67 | (27,223 | ) | $ | 46.91 | |||
Non-vested balance at December 31, 2015 | 2,459,293 | $ | 52.51 | 678,165 | $ | 46.25 |
Shares | Weighted Average Grant Date Fair Value | |||||
Non-vested balance at January 1, 2015 | 7,200 | $ | 46.14 | |||
Granted | — | $ | — | |||
Vested | (7,200 | ) | $ | 46.14 | ||
Forfeited | — | $ | — | |||
Non-vested balance at December 31, 2015 | — | $ | — |
Level 1. | Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market (examples include active exchange-traded equity securities and money market mutual funds). |
Level 2. | Assets and liabilities whose values are based on the following: |
a) | Quoted prices for similar assets or liabilities in active markets; |
b) | Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently); |
c) | Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and |
d) | Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full asset or liability (for example, certain mortgage loans). |
Level 3. | Assets and liabilities whose values are based on prices, or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability (examples include private equity investments, certain commercial mortgage whole loans, and long-dated or complex derivatives including certain foreign exchange options and long-dated options on gas and power). |
(In millions of dollars) | Identical Assets (Level 1) | Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | |||||||||||||||||||||||||||
12/31/15 | 12/31/14 | 12/31/15 | 12/31/14 | 12/31/15 | 12/31/14 | 12/31/15 | 12/31/14 | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Financial instruments owned: | |||||||||||||||||||||||||||||||
Mutual funds(a) | $ | 142 | $ | 150 | $ | — | $ | — | $ | — | $ | — | $ | 142 | $ | 150 | |||||||||||||||
Money market funds(b) | 140 | 107 | — | — | — | — | 140 | 107 | |||||||||||||||||||||||
Total assets measured at fair value | $ | 282 | $ | 257 | $ | — | $ | — | $ | — | $ | — | $ | 282 | $ | 257 | |||||||||||||||
Fiduciary Assets: | |||||||||||||||||||||||||||||||
Money market funds | $ | 48 | $ | 57 | $ | — | $ | — | $ | — | $ | — | $ | 48 | $ | 57 | |||||||||||||||
Total fiduciary assets measured at fair value | $ | 48 | $ | 57 | $ | — | $ | — | $ | — | $ | — | $ | 48 | $ | 57 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Contingent purchase consideration liability(c) | $ | — | $ | — | $ | — | $ | — | $ | 309 | $ | 207 | $ | 309 | $ | 207 | |||||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | — | $ | — | $ | 309 | $ | 207 | $ | 309 | $ | 207 |
(In millions of dollars) | 2015 | 2014 | |||||
Balance at January 1, | $ | 207 | $ | 104 | |||
Additions | 104 | 114 | |||||
Payments | (47 | ) | (42 | ) | |||
Revaluation Impact | 45 | 31 | |||||
Balance at December 31, | $ | 309 | $ | 207 |
For the Twelve Months Ended September 30, | ||||||||||||
(In millions of dollars) | 2015 | 2014 | 2013 | |||||||||
Revenue | $ | 1,018 | $ | 239 | $ | 148 | ||||||
Net investment income (a) | $ | 1,620 | $ | 161 | $ | 88 | ||||||
Net income | $ | 196 | $ | 216 | $ | 135 |
As of September 30, | ||||||||
(In millions of dollars) | 2015 | 2014 | ||||||
Total assets | $ | 21,101 | $ | 25,497 | ||||
Total liabilities | $ | 19,348 | $ | 24,209 | ||||
Non-controlling interests | $ | 12 | $ | 14 |
For the Years Ended December 31, | Gross Rental Commitments | Rentals from Subleases | Net Rental Commitments | ||||||||
(In millions of dollars) | |||||||||||
2016 | $ | 372 | $ | 47 | $ | 325 | |||||
2017 | $ | 341 | $ | 44 | $ | 297 | |||||
2018 | $ | 311 | $ | 42 | $ | 269 | |||||
2019 | $ | 259 | $ | 35 | $ | 224 | |||||
2020 | $ | 224 | $ | 32 | $ | 192 | |||||
Subsequent years | $ | 847 | $ | 5 | $ | 842 |
For the Years Ended December 31, | Future Minimum Commitments | ||
(In millions of dollars) | |||
2016 | $ | 172 | |
2017 | 64 | ||
2018 | 37 | ||
Subsequent years | 11 | ||
$ | 284 |
December 31, | |||||||
(In millions of dollars) | 2015 | 2014 * | |||||
Short-term: | |||||||
Current portion of long-term debt | $ | 12 | $ | 11 | |||
Long-term: | |||||||
Senior notes – 2.30% due 2017 | 249 | 249 | |||||
Senior notes – 2.55% due 2018 | 249 | 249 | |||||
Senior notes – 2.35% due 2019 | 298 | 298 | |||||
Senior notes – 2.35% due 2020 | 496 | — | |||||
Senior notes – 4.80% due 2021 | 497 | 497 | |||||
Senior notes – 4.05% due 2023 | 248 | 247 | |||||
Senior notes – 3.50% due 2024 | 595 | 594 | |||||
Senior notes – 3.50% due 2025 | 495 | 494 | |||||
Senior notes – 3.75% due 2026 | 595 | — | |||||
Senior notes – 5.875% due 2033 | 297 | 297 | |||||
Mortgage – 5.70% due 2035 | 393 | 403 | |||||
Term Loan Facility | — | 50 | |||||
Other | 2 | 1 | |||||
4,414 | 3,379 | ||||||
Less current portion | 12 | 11 | |||||
$ | 4,402 | $ | 3,368 |
December 31, 2015 | December 31, 2014 | ||||||||||||||
(In millions of dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||
Short-term debt | $ | 12 | $ | 12 | $ | 11 | $ | 11 | |||||||
Long-term debt | $ | 4,402 | $ | 4,513 | $ | 3,376 | $ | 3,493 |
(In millions of dollars) | Balance at 1/1/14 | Expense Incurred | Cash Paid | Other | Balance at 12/31/14 | Expense Incurred | Cash Paid | Other | Balance at 12/31/15 | ||||||||||||||||||||||||||
Severance | $ | 11 | $ | 4 | $ | (8 | ) | $ | — | $ | 7 | $ | 17 | $ | (7 | ) | $ | (2 | ) | $ | 15 | ||||||||||||||
Future rent under non-cancelable leases and other costs | 113 | 8 | (35 | ) | (1 | ) | 85 | 11 | (21 | ) | 3 | 78 | |||||||||||||||||||||||
Total | $ | 124 | $ | 12 | $ | (43 | ) | $ | (1 | ) | $ | 92 | $ | 28 | $ | (28 | ) | $ | 1 | $ | 93 |
▪ | Risk and Insurance Services, comprising insurance services (Marsh) and reinsurance services (Guy Carpenter); and |
▪ | Consulting, comprising Mercer and Oliver Wyman Group |
For the Year Ended December 31, (In millions of dollars) | Revenue | Operating Income (Loss) | Total Assets | (d) | Depreciation and Amortization | Capital Expenditures | |||||||||||||
2015 – | |||||||||||||||||||
Risk and Insurance Services | $ | 6,869 | (a) | $ | 1,539 | $ | 13,290 | $ | 240 | $ | 136 | ||||||||
Consulting | 6,064 | (b) | 1,075 | 6,485 | 120 | 108 | |||||||||||||
Total Segments | 12,933 | 2,614 | 19,775 | 360 | 244 | ||||||||||||||
Corporate/Eliminations | (40 | ) | (195 | ) | (1,559 | ) | (c) | 63 | 81 | ||||||||||
Total Consolidated | $ | 12,893 | $ | 2,419 | $ | 18,216 | $ | 423 | $ | 325 | |||||||||
2014 – | |||||||||||||||||||
Risk and Insurance Services | $ | 6,931 | (a) | $ | 1,509 | $ | 12,211 | $ | 213 | $ | 173 | ||||||||
Consulting | 6,059 | (b) | 996 | 5,916 | 119 | 92 | |||||||||||||
Total Segments | 12,990 | 2,505 | 18,127 | 332 | 265 | ||||||||||||||
Corporate/Eliminations | (39 | ) | (204 | ) | (334 | ) | (c) | 56 | 103 | ||||||||||
Total Consolidated | $ | 12,951 | $ | 2,301 | $ | 17,793 | $ | 388 | $ | 368 | |||||||||
2013 – | |||||||||||||||||||
Risk and Insurance Services | $ | 6,596 | (a) | $ | 1,421 | $ | 11,365 | $ | 192 | $ | 158 | ||||||||
Consulting | 5,701 | (b) | 845 | 5,178 | 115 | 155 | |||||||||||||
Total Segments | 12,297 | 2,266 | 16,543 | 307 | 313 | ||||||||||||||
Corporate/Eliminations | (36 | ) | (189 | ) | 417 | (c) | 51 | 88 | |||||||||||
Total Consolidated | $ | 12,261 | $ | 2,077 | $ | 16,960 | $ | 358 | $ | 401 |
(a) | Includes inter-segment revenue of $6 million in 2015, $4 million in 2014 and $5 million in 2013, interest income on fiduciary funds of $21 million, $24 million and $27 million in 2015, 2014 and 2013, respectively, and equity method income of $6 million, $9 million and $8 million in 2015, 2014 and 2013, respectively. |
(b) | Includes inter-segment revenue of $34 million, $35 million and $31 million in 2015, 2014 and 2013, respectively, interest income on fiduciary funds of $4 million in 2015, $6 million in 2014 and $5 million in 2013 and equity method income of $21 million in 2015, $2 million in 2014 and $0 million in 2013. |
(c) | Corporate assets primarily include insurance recoverables, pension related assets, the owned portion of the Company headquarters building and intercompany eliminations. |
(d) | Amended to reflect the adoption in 2015 of new Financial Accounting Standards Board guidance related to the presentation of deferred taxes and debt issuance costs. |
For the Years Ended December 31, | |||||||||||
(In millions of dollars) | 2015 | 2014 | 2013 | ||||||||
Risk and Insurance Services | |||||||||||
Marsh | $ | 5,745 | $ | 5,774 | $ | 5,461 | |||||
Guy Carpenter | 1,124 | 1,157 | 1,135 | ||||||||
Total Risk and Insurance Services | 6,869 | 6,931 | 6,596 | ||||||||
Consulting | |||||||||||
Mercer | 4,313 | 4,350 | 4,241 | ||||||||
Oliver Wyman Group | 1,751 | 1,709 | 1,460 | ||||||||
Total Consulting | 6,064 | 6,059 | 5,701 | ||||||||
Total Segments | 12,933 | 12,990 | 12,297 | ||||||||
Corporate/Eliminations | (40 | ) | (39 | ) | (36 | ) | |||||
Total | $ | 12,893 | $ | 12,951 | $ | 12,261 |
For the Years Ended December 31, | |||||||||||
(In millions of dollars) | 2015 | 2014 | 2013 | ||||||||
Revenue | |||||||||||
United States | $ | 6,316 | $ | 5,865 | $ | 5,485 | |||||
United Kingdom | 2,036 | 2,111 | 1,979 | ||||||||
Continental Europe | 1,902 | 2,077 | 1,943 | ||||||||
Asia Pacific | 1,333 | 1,420 | 1,396 | ||||||||
Other | 1,346 | 1,517 | 1,494 | ||||||||
12,933 | 12,990 | 12,297 | |||||||||
Corporate/Eliminations | (40 | ) | (39 | ) | (36 | ) | |||||
$ | 12,893 | $ | 12,951 | $ | 12,261 |
For the Years Ended December 31, | |||||||||||
(In millions of dollars) | 2015 | 2014 | 2013 | ||||||||
Fixed Assets, Net | |||||||||||
United States | $ | 460 | $ | 483 | $ | 494 | |||||
United Kingdom | 115 | 120 | 121 | ||||||||
Continental Europe | 57 | 60 | 64 | ||||||||
Asia Pacific | 49 | 62 | 72 | ||||||||
Other | 92 | 84 | 77 | ||||||||
$ | 773 | $ | 809 | $ | 828 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In millions, except per share figures) | |||||||||||||||
2015: | |||||||||||||||
Revenue | $ | 3,215 | $ | 3,225 | $ | 3,115 | $ | 3,338 | |||||||
Operating income | $ | 735 | $ | 629 | $ | 461 | $ | 594 | |||||||
Income from continuing operations | $ | 498 | $ | 429 | $ | 329 | $ | 380 | |||||||
Discontinued operations, net of tax | $ | (3 | ) | $ | — | $ | 2 | $ | 1 | ||||||
Net income attributable to the Company | $ | 482 | $ | 419 | $ | 323 | $ | 375 | |||||||
Basic Per Share Data: | |||||||||||||||
Continuing operations | $ | 0.90 | $ | 0.78 | $ | 0.61 | $ | 0.72 | |||||||
Discontinued operations, net of tax | $ | (0.01 | ) | $ | — | $ | — | $ | — | ||||||
Net income attributable to the Company | $ | 0.89 | $ | 0.78 | $ | 0.61 | $ | 0.72 | |||||||
Diluted Per Share Data: | |||||||||||||||
Continuing operations | $ | 0.89 | $ | 0.77 | $ | 0.60 | $ | 0.71 | |||||||
Discontinued operations, net of tax | $ | (0.01 | ) | $ | — | $ | 0.01 | $ | — | ||||||
Net income attributable to the Company | $ | 0.88 | $ | 0.77 | $ | 0.61 | $ | 0.71 | |||||||
Dividends Paid Per Share | $ | 0.28 | $ | 0.28 | $ | 0.31 | $ | 0.31 | |||||||
2014: | |||||||||||||||
Revenue | $ | 3,264 | $ | 3,300 | $ | 3,141 | $ | 3,246 | |||||||
Operating income | $ | 673 | $ | 647 | $ | 445 | $ | 536 | |||||||
Income from continuing operations | $ | 457 | $ | 440 | $ | 305 | $ | 269 | |||||||
Discontinued operations, net of tax | $ | (1 | ) | $ | (2 | ) | $ | (1 | ) | $ | 30 | ||||
Net income attributable to the Company | $ | 443 | $ | 431 | $ | 297 | $ | 294 | |||||||
Basic Per Share Data: | |||||||||||||||
Continuing operations | $ | 0.81 | $ | 0.79 | $ | 0.55 | $ | 0.49 | |||||||
Discontinued operations, net of tax | $ | — | $ | (0.01 | ) | $ | — | $ | 0.05 | ||||||
Net income attributable to the Company | $ | 0.81 | $ | 0.78 | $ | 0.55 | $ | 0.54 | |||||||
Diluted Per Share Data: | |||||||||||||||
Continuing operations | $ | 0.80 | $ | 0.78 | $ | 0.54 | $ | 0.48 | |||||||
Discontinued operations, net of tax | $ | — | $ | (0.01 | ) | $ | — | $ | 0.06 | ||||||
Net income attributable to the Company | $ | 0.80 | $ | 0.77 | $ | 0.54 | $ | 0.54 | |||||||
Dividends Paid Per Share | $ | 0.25 | $ | 0.25 | $ | 0.28 | $ | 0.28 |
(a) | Management’s Annual Report on Internal Control Over Financial Reporting |
(b) | Audit Report of the Registered Public Accounting Firm. |
(c) | Changes in Internal Control Over Financial Reporting |
(1) | Consolidated Financial Statements: |
(2) | All required Financial Statement Schedules are included in the Consolidated Financial Statements or the Notes to Consolidated Financial Statements. |
(3) | The following exhibits are filed as a part of this report: |
(2.1) | Stock Purchase Agreement, dated as of June 6, 2010, by and between Marsh & McLennan Companies, Inc. and Altegrity, Inc. (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010) |
(3.1) | Restated Certificate of Incorporation of Marsh & McLennan Companies, Inc. (incorporated by reference to the Company’s Current Report on Form 8-K dated July 17, 2008) |
(3.2) | Amended and Restated By-Laws of Marsh & McLennan Companies, Inc. (incorporated by reference to the Company’s Current Report on Form 8-K dated September 17, 2009) |
(4.1) | Indenture dated as of June 14, 1999 between Marsh & McLennan Companies, Inc. and State Street Bank and Trust Company, as trustee (incorporated by reference to the Company’s Registration Statement on Form S-3, Registration No. 333-108566) |
(4.2) | Third Supplemental Indenture dated as of July 30, 2003 between Marsh & McLennan Companies, Inc. and U.S. Bank National Association (as successor to State Street Bank and Trust Company), as trustee (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2003) |
(4.3) | Indenture dated as of March 19, 2002 between Marsh & McLennan Companies, Inc. and State Street Bank and Trust Company, as trustee (incorporated by reference to the Company’s Registration Statement on Form S-4, Registration No. 333-87510) |
(4.4) | Indenture, dated as of July 15, 2011, between Marsh & McLennan Companies, Inc. and The Bank of New York Mellon, as trustee (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2011) |
(4.5) | First Supplemental Indenture, dated as of July 15, 2011, between Marsh & McLennan Companies, Inc. and The Bank of New York Mellon, as trustee (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2011) |
(4.6) | Form of Second Supplemental Indenture between Marsh & McLennan Companies, Inc. and The Bank of New York Mellon, as trustee (incorporated by reference to the Company’s Current Report on Form 8-K dated March 7, 2012) |
(4.7) | Form of Third Supplemental Indenture between Marsh & McLennan Companies, Inc. and The Bank of New York Mellon, as trustee (incorporated by reference to the Company’s Current Report on Form 8-K dated September 24, 2013) |
(4.8) | Form of Fourth Supplemental Indenture between Marsh & McLennan Companies, Inc. and The Bank of New York Mellon, as trustee (incorporated by reference to the Company’s Current Report on Form 8-K dated May 27, 2014) |
(4.9) | Form of Fifth Supplemental Indenture between Marsh & McLennan Companies, Inc. and The Bank of New York Mellon, as trustee (incorporated by reference to the Company’s Current Report on Form 8-K dated September 10, 2014) |
(4.10) | Sixth Supplemental Indenture, dated as of March 6, 2015, between Marsh & McLennan Companies, Inc. and The Bank of New York Mellon, as trustee (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015) |
(4.11) | Seventh Supplemental Indenture, dated as of September 14, 2015, between Marsh & McLennan Companies, Inc. and The Bank of New York Mellon, as trustee (incorporated by reference to the Company's Current Report on Form 8-K filed on September 14, 2015) |
(10.1) | *Marsh & McLennan Companies, Inc. U.S. Employee 1996 Cash Bonus Award Voluntary Deferral Plan (incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 1996) |
(10.2) | *Marsh & McLennan Companies, Inc. U.S. Employee 1997 Cash Bonus Award Voluntary Deferral Plan (incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 1997) |
(10.3) | *Marsh & McLennan Companies, Inc. U.S. Employee 1998 Cash Bonus Award Voluntary Deferral Plan (incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 1998) |
(10.4) | *Marsh & McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 1999) |
(10.5) | *Amendments to Marsh & McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan and the Marsh & McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2005) |
(10.6) | *Form of Awards under the Marsh & McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2004) |
(10.7) | *Additional Forms of Awards under the Marsh & McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005) |
(10.8) | *Marsh & McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2001) |
(10.9) | *Form of Awards under the Marsh & McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2004) |
(10.10) | *Additional Forms of Awards under the Marsh & McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005) |
(10.11) | *Form of Long-term Incentive Award under the Marsh & McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan and the Marsh & McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006) |
(10.12) | *Form of 2007 Long-term Incentive Award under the Marsh & McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan and the Marsh & McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007) |
(10.13) | *Form of 2008 Long-term Incentive Award under the Marsh & McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan and the Marsh & McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008) |
(10.14) | *Form of 2009 Long-term Incentive Award under the Marsh & McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan and the Marsh & McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2009) |
(10.15) | *Form of 2010 Long-term Incentive Award under the Marsh & McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan and the Marsh & McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010) |
(10.16) | *Form of 2011 Long-term Incentive Award under the Marsh & McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan and the Marsh & McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2011) |
(10.17) | *Form of 2011 Long-term Incentive Award dated as of June 1, 2011 under the Marsh & McLennan Companies, Inc. 2011 Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011) |
(10.18) | *Form of 2012 Long-term Incentive Award under the Marsh & McLennan Companies, Inc. 2011 Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012) |
(10.19) | *Form of 2013 Long-term Incentive Award under the Marsh & McLennan Companies, Inc. 2011 Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013) |
(10.20) | *Form of 2014 Long-term Incentive Award under the Marsh & McLennan Companies, Inc. 2011 Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014) |
(10.21) | *Form of 2015 Long-term Incentive Award under the Marsh & McLennan Companies, Inc. 2011 Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015) |
(10.22) | *Form of Deferred Stock Unit Award, dated as of February 24, 2012, under the Marsh & McLennan Companies, Inc. 2011 Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012) |
(10.23) | *Form of Deferred Stock Unit Award, dated as of March 1, 2013, under the Marsh & McLennan Companies, Inc. 2011 Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013) |
(10.24) | *Form of Deferred Stock Unit Award, dated as of March 1, 2014, under the Marsh & McLennan Companies, Inc. 2011 Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014) |
(10.25) | *Form of Deferred Stock Unit Award, dated as of March 1, 2015, under the Marsh & McLennan Companies, Inc. 2011 Incentive and Stock Award Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015) |
(10.26) | *Marsh & McLennan Companies, Inc. 2011 Incentive and Stock Award Plan (incorporated by reference to the Company’s Registration Statement on Form S-8 dated August 5, 2011, Registration No. 333-176084) |
(10.27) | *Amendments to Certain Marsh & McLennan Companies Equity-Based Awards Due to U.S. Tax Law Changes Affecting Equity-Based Awards granted under the Marsh & McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan and the Marsh & McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan, effective January 1, 2009 (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008) |
(10.28) | *Section 409A Amendment Document, effective as of January 1, 2009 (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008) |
(10.29) | *Section 409A Amendment Regarding Payments Conditioned Upon Employment-Related Action to Any and All Plans or Arrangements Entered into by the Marsh & McLennan Companies, Inc., or any of its Direct or Indirect Subsidiaries, that Provide for the Payment of Section 409A Nonqualified Deferred Compensation, effective December 21, 2012 (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012) |
(10.30) | *Marsh & McLennan Companies Supplemental Savings & Investment Plan (formerly the Marsh & McLennan Companies Stock Investment Supplemental Plan) Restatement, effective January 1, 2012 (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012) |
(10.31) | *Marsh & McLennan Companies, Inc. Special Severance Pay Plan (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 1996) |
(10.32) | *Marsh & McLennan Companies Benefit Equalization Plan and Marsh & McLennan Companies Supplemental Retirement Plan as Restated, effective January 1, 2012 (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012) |
(10.33) | *Marsh & McLennan Companies, Inc. Senior Executive Severance Pay Plan (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the Quarter ended March 31, 2008) |
(10.34) | *Amendment to the Marsh & McLennan Companies, Inc. Senior Executive Severance Pay Plan, effective December 31, 2009 (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009) |
(10.35) | *Marsh & McLennan Companies, Inc. Senior Management Incentive Compensation Plan (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 1994) |
(10.36) | *Marsh & McLennan Companies, Inc. Directors' Stock Compensation Plan - May 31, 2009 Restatement (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009) |
(10.37) | *Marsh & McLennan Companies International Retirement Plan As Amended and Restated Effective January 1, 2009 (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014) |
(10.38) | *Description of compensation arrangements for independent directors of Marsh & McLennan Companies, Inc. effective June 1, 2014 (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014) |
(10.39) | *Letter Agreement, effective as of March 20, 2013, between Marsh & McLennan Companies, Inc. and Daniel S. Glaser (incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2013) |
(10.40) | *Non-Competition and Non-Solicitation Agreement, effective as of September 18, 2013, between Marsh & McLennan Companies, Inc. and Daniel S. Glaser (incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2013) |
(10.41) | *Letter Agreement, effective as of May 14, 2014, between Marsh & McLennan Companies, Inc. and Daniel S. Glaser (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014) |
(10.42) | *Letter Agreement, effective as of March 20, 2013, between Marsh & McLennan Companies, Inc. and J. Michael Bischoff (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013) |
(10.43) | *Non-Competition and Non-Solicitation Agreement, effective as of November 21, 2013, between Marsh & McLennan Companies, Inc. and J. Michael Bischoff (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013) |
(10.44) | *Letter Agreement, effective as of May 14, 2014, between Marsh & McLennan Companies, Inc. and J. Michael Bischoff (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014) |
(10.45) | *Letter Agreement, effective as of March 20, 2013, between Marsh & McLennan Companies, Inc. and Peter Zaffino (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013) |
(10.46) | *Non-Competition and Non-Solicitation Agreement, effective as of November 21, 2013, between Marsh & McLennan Companies, Inc. and Peter Zaffino (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013) |
(10.47) | *Letter Agreement, effective as of May 14, 2014, between Marsh & McLennan Companies, Inc. and Peter Zaffino (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014) |
(10.48) | *Letter Agreement, effective as of March 20, 2013, between Marsh & McLennan Companies, Inc. and Julio A. Portalatin (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013) |
(10.49) | *Non-Competition and Non-Solicitation Agreement, effective as of November 21, 2013, between Marsh & McLennan Companies, Inc. and Julio A. Portalatin (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013) |
(10.50) | *Letter Agreement, effective as of May 14, 2014, between Marsh & McLennan Companies, Inc. and Julio A. Portalatin (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014) |
(10.51) | *Letter Agreement, effective as of March 20, 2013, between Marsh & McLennan Companies, Inc. and Alexander S. Moczarski (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014) |
(10.52) | *Non-Competition and Non-Solicitation Agreement, effective as of November 21, 2013, between Marsh & McLennan Companies, Inc. and Alexander S. Moczarski (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014) |
(10.53) | *Letter Agreement, effective as of May 14, 2014, between Marsh & McLennan Companies, Inc. and Alexander S. Moczarski (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014) |
(10.54) | *Letter Agreement, effective as of March 20, 2013, between Marsh & McLennan Companies, Inc. and Peter J. Beshar (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015) |
(10.55) | *Non-Competition and Non-Solicitation Agreement, effective as of November 21, 2013, between Marsh & McLennan Companies, Inc. and Peter J. Beshar (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015) |
(10.56) | *Letter Agreement, effective as of January 1, 2016, between Marsh & McLennan Companies, Inc. and Mark C. McGivney (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015) |
(10.57) | *Non-Competition and Non-Solicitation Agreement, effective as of January 1, 2016, between Marsh & McLennan Companies, Inc. and Mark C. McGivney (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015) |
(12.1) | Statement Re: Computation of Ratio of Earnings to Fixed Charges |
(14.1) | Code of Ethics for Chief Executive and Senior Financial Officers (incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2002) |
(21.1) | List of Subsidiaries of Marsh & McLennan Companies, Inc. (as of February 19, 2016) |
(23.1) | Consent of Independent Registered Public Accounting Firm |
(24.1) | Power of Attorney (included on signature page) |
(31.1) | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer |
(31.2) | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer |
(32.1) | Section 1350 Certifications |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | XBRL Taxonomy Extension Definition Linkbase |
101.LAB | XBRL Taxonomy Extension Label Linkbase |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
MARSH & McLENNAN COMPANIES, INC. | ||||
Dated: | February 24, 2016 | By | /S/ DANIEL S. GLASER | |
Daniel S. Glaser President and Chief Executive Officer |
Name | Title | Date | ||
/S/ DANIEL S. GLASER Daniel S. Glaser | Director, President & Chief Executive Officer | February 24, 2016 | ||
/S/ MARK C. MCGIVNEY Mark C. McGivney | Chief Financial Officer | February 24, 2016 | ||
/S/ ROBERT J. RAPPORT Robert J. Rapport | Senior Vice President & Controller (Chief Accounting Officer) | February 24, 2016 | ||
/S/ OSCAR FANJUL Oscar Fanjul | Director | February 24, 2016 | ||
/S/ H. EDWARD HANWAY H. Edward Hanway | Director | February 24, 2016 | ||
/S/ LORD LANG OF MONKTON Lord Lang of Monkton | Director | February 24, 2016 | ||
/S/ ELAINE LA ROCHE Elaine La Roche | Director | February 24, 2016 | ||
/s/ MARIA SILVIA BASTOS MARQUES Maria Silvia Bastos Marques | Director | February 24, 2016 | ||
/S/ STEVEN A. MILLS Steven A. Mills | Director | February 24, 2016 |
Name | Title | Date | ||
/S/ BRUCE P. NOLOP Bruce P. Nolop | Director | February 24, 2016 | ||
/S/ MARC D. OKEN Marc D. Oken | Director | February 24, 2016 | ||
/S/ MORTON O. SCHAPIRO Morton O. Schapiro | Director | February 24, 2016 | ||
/S/ LLOYD YATES Lloyd Yates | Director | February 24, 2016 | ||
/S/ R. DAVID YOST R. David Yost | Director | February 24, 2016 |
Years Ended December 31, | ||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
Earnings | ||||||||||||||||||||
Income before income taxes | $ | 2,307 | $ | 2,057 | $ | 1,973 | $ | 1,696 | $ | 1,404 | ||||||||||
Interest expense | 163 | 165 | 167 | 181 | 199 | |||||||||||||||
Portion of rents representative of the interest factor | 127 | 131 | 134 | 139 | 143 | |||||||||||||||
$ | 2,597 | $ | 2,353 | $ | 2,274 | $ | 2,016 | $ | 1,746 | |||||||||||
Fixed Charges | ||||||||||||||||||||
Interest expense | $ | 163 | $ | 165 | $ | 167 | $ | 181 | $ | 199 | ||||||||||
Portion of rents representative of the interest factor | 127 | 131 | 134 | 139 | 143 | |||||||||||||||
$ | 290 | $ | 296 | $ | 301 | $ | 320 | $ | 342 | |||||||||||
Ratio of Earnings to Fixed Charges | 9.0 | 7.9 | 7.6 | 6.3 | 5.1 |
Company Name | Country | |
1 | A Wills & Co Limited | United Kingdom |
2 | A. Constantinidi & CIA. S.C. | Uruguay |
3 | A.C.N. 000 951 146 Pty Limited | Australia |
4 | A.C.N. 001 572 961 Pty Limited | Australia |
5 | A.C.N. 076 935 683 Pty Limited | Australia |
6 | A.C.N. 102 322 574 Pty Limited | Australia |
7 | Access Equity Enhanced Fund GP, LLC | United States |
8 | Admiral Holdings Limited | United Kingdom |
9 | AFCO Premium Acceptance, Inc. | United States |
10 | AFCO Premium Credit LLC | United States |
11 | Aldgate Investments Limited | Bermuda |
12 | Alexander Forbes Group Holdings Limited | South Africa |
13 | Argyll Insurance Services Limited | United Kingdom |
14 | Assivalo Prestao de Servios Auxiliares do Setor de Seguros Ltda. | Brazil |
15 | Assur Conseils Marsh S.A. | Senegal |
16 | Assurance Capital Corporation | United States |
17 | Assurance Services Corporation | United States |
18 | Australian World Underwriters Pty Ltd. | Australia |
19 | Barney & Barney Orange County, LLC | United States |
20 | Bartlett Davies Bicks Limited | United Kingdom |
21 | Beaumont Investments Limited | United Kingdom |
22 | Beaumonts (Leeds) Limited | United Kingdom |
23 | Beaumonts Bradford Limited | United Kingdom |
24 | Beaumonts Guiseley Limited | United Kingdom |
25 | Beaumonts Insurance Brokers Limited | United Kingdom |
26 | Beaumonts Insurance Group Limited | United Kingdom |
27 | Blue Marble Micro Limited | United Kingdom |
28 | Blue Marble Microinsurance, Inc. | United States |
29 | Bowring (Bermuda) Investments Ltd. | Bermuda |
30 | Bowring Marine Limited | United Kingdom |
31 | Bowring Marsh (Bermuda) Ltd. | Bermuda |
32 | Bowring Marsh (Dublin) Limited | Ireland |
33 | Bowring Marsh (Hong Kong) Limited | Hong Kong |
34 | Bowring Marsh Asia Pte. Ltd. | Singapore |
35 | Bowring Marsh Corretora de Resseguros Ltda. | Brazil |
36 | Bowring Marsh Limited | United Kingdom |
37 | Broker 2 Broker Limited | United Kingdom |
38 | BuildPay LLC | United States |
39 | C.T. Bowring Limited | United Kingdom |
40 | Carpenter Turner SA | Greece |
41 | Castle Cairn (Financial Services) Limited | United Kingdom |
42 | Castle Cairn (Insurance Brokers) Limited | United Kingdom |
43 | Castle Cairn Limited | United Kingdom |
44 | Central Insurance Services (Holdings) Limited | United Kingdom |
45 | Central Insurance Services Limited | United Kingdom |
46 | CH&B (Holdings) Limited | United Kingdom |
47 | Chronos Insurance Brokers Pty Limited | Australia |
48 | Claims and Recovery Management (Australia) Pty Limited | Australia |
49 | Clarke Roxburgh Insurance Brokers Limited | United Kingdom |
50 | Collins Halden & Burnett Limited | United Kingdom |
51 | Companias DeLima S.A. | Colombia |
52 | Consultores 2020 C.A. | Venezuela |
53 | CPSG Partners, LLC | United States |
54 | Cronin & Co. Corporate Insurance Brokers Limited | United Kingdom |
55 | DeLima Marsh S.A. - Los Corredores de Seguros S.A. | Colombia |
56 | Dovetail Insurance Corp. | United States |
57 | Dovetail Managing General Agency Corporation | United States |
58 | Dovetail Technology Service India Private Limited | India |
59 | DVA - Deutsche Verkehrs-Assekuranz-Vermittlungs GmbH | Germany |
60 | EagleEye Analytics, Inc. | United States |
61 | EnBW Versicherungs Vermittlung GmbH | Germany |
62 | Encompass Insurance Agency Pty Ltd. | Australia |
63 | Encon Group Inc./Groupe Encon Inc. | Canada |
64 | English Pension Trustees Limited | United Kingdom |
65 | Epsilon (US) Insurance Company | United States |
66 | Epsilon Insurance Company, Ltd. | Cayman Islands |
67 | Exmoor Management Company Limited | Bermuda |
68 | Faulkner & Flynn, LLC | United States |
69 | Femi Johnson & Company Limited | Nigeria |
70 | Gama Consultores Associados Ltda. | Brazil |
71 | Gem Insurance Company Limited | Bermuda |
72 | Gerenciadora de Riesgos S.A. | Argentina |
73 | Global Premium Finance Company | United States |
74 | Guian S.A. | France |
75 | Guy Carpenter & Cia (Mexico) S.A. de C.V. | Mexico |
76 | Guy Carpenter & Cia., S.A. | Spain |
77 | Guy Carpenter & Co. Labuan Ltd. | Malaysia |
78 | Guy Carpenter & Company (Pty) Limited | South Africa |
79 | Guy Carpenter & Company AB | Sweden |
80 | Guy Carpenter & Company Corredores de Reaseguros Limitada | Chile |
81 | Guy Carpenter & Company Corretora de Resseguros Ltda. | Brazil |
82 | Guy Carpenter & Company GmbH | Germany |
83 | Guy Carpenter & Company Limited | New Zealand |
84 | Guy Carpenter & Company Limited | United Kingdom |
85 | Guy Carpenter & Company Peru Corredores de Reaseguros S.A. | Peru |
86 | Guy Carpenter & Company Private Limited | Singapore |
87 | Guy Carpenter & Company Pty. Limited | Australia |
88 | Guy Carpenter & Company S.A. (Uruguay) | Uruguay |
89 | Guy Carpenter & Company S.r.l. | Italy |
90 | Guy Carpenter & Company Venezuela, C.A. (in liquidation) | Venezuela |
91 | Guy Carpenter & Company, Limited | Hong Kong |
92 | Guy Carpenter & Company, LLC | United States |
93 | Guy Carpenter & Company, Ltd./Guy Carpenter & Compagnie, Ltee | Canada |
94 | Guy Carpenter & Company, S.A. | Argentina |
95 | Guy Carpenter & Company, S.A. | Belgium |
96 | Guy Carpenter & Company, S.A.S. | France |
97 | Guy Carpenter (Middle East) Limited | United Arab Emirates |
98 | Guy Carpenter Bermuda Ltd. | Bermuda |
99 | Guy Carpenter Broking, Inc. | United States |
100 | Guy Carpenter Colombia Corredores de Reaseguros Ltda. | Colombia |
101 | Guy Carpenter Insurance Brokers (Beijing) Co. Ltd. | China |
102 | Guy Carpenter Japan, Inc. | Japan |
103 | Guy Carpenter Mexico Intermediario de Reaseguro, S.A. de C.V. | Mexico |
104 | Guy Carpenter Reasurans Brokerligi Anonim Sirketi | Turkey |
105 | HAE Insurance Services Limited | United Kingdom |
106 | Hamilton Bond (North) Limited | United Kingdom |
107 | Hamilton Bond Group Limited | United Kingdom |
108 | Hamilton Bond Limited | United Kingdom |
109 | Hamilton Bond Midlands Limited | United Kingdom |
110 | Hansen International Limited | United States |
111 | HAPIP GP 2009, LLC | United States |
112 | HAPIP GP, LLC | United States |
113 | Health Insurance Brokers Limited | United Kingdom |
114 | Howell Shone Insurance Brokers Limited | United Kingdom |
115 | HSBC Insurance Brokers International (Abu Dhabi) LLC | United Arab Emirates |
116 | IAS Barbados, Ltd. | Barbados |
117 | Industrial Risks Protection Consultants | Nigeria |
118 | Ingeseg S.A. | Argentina |
119 | Insbrokers Ltda. | Uruguay |
120 | INSIA a.s. | Czech Republic |
121 | INSIA Europe SE | Czech Republic |
122 | INSIA SK s.r.o. | Slovakia |
123 | InSolutions Limited | United Kingdom |
124 | Insurance Brokers of Nigeria Limited | Nigeria |
125 | Interlink Securities Corp. | United States |
126 | Invercol Limited | Bermuda |
127 | Irish Pensions Trust Limited | Ireland |
128 | J&H Marsh & McLennan Limited | Hong Kong |
129 | J.W. Terrill Benefit Administrators, Inc. | United States |
130 | Japan Affinity Marketing, Inc. | Japan |
131 | Jelf Commercial Finance Limited | United Kingdom |
132 | Jelf Financial Planning Limited | United Kingdom |
133 | Jelf Group Plc | United Kingdom |
134 | Jelf Insurance Brokers Limited | United Kingdom |
135 | Jelf Risk Management Limited | United Kingdom |
136 | Jelf Wellbeing Limited | United Kingdom |
137 | John Lampier & Son Ltd | United Kingdom |
138 | Johnson & Higgins (Bermuda) Limited | Bermuda |
139 | Johnson & Higgins Limited | United Kingdom |
140 | Kepler Associates Limited | United Kingdom |
141 | Kessler & Co Inc. | Liechtenstein |
142 | Kessler & Co Inc. | Switzerland |
143 | Kessler Consulting Inc. | Switzerland |
144 | Kessler Prevoyance Inc. | Switzerland |
145 | Kocisko Insurance Brokers Inc. | Canada |
146 | Laterlife.com Limited | United Kingdom |
147 | Law and Business Economics Limited | United Kingdom |
148 | Libra Insurance Services Limited | United Kingdom |
149 | Lynch Insurance Brokers Limited | Barbados |
150 | M&M Vehicle, L.P. | United States |
151 | Mangrove Insurance Solutions PCC Limited | Isle of Man |
152 | Mangrove Insurance Solutions, PCC | United States |
153 | Manson Insurance Brokers Limited | United Kingdom |
154 | Manson Warner Healthcare Limited | United Kingdom |
155 | Marsh - Insurance Brokers ZAO | Russian Federation |
156 | Marsh & McLennan (PNG) Limited | Papua New Guinea |
157 | Marsh & McLennan Agencies AS | Norway |
158 | Marsh & McLennan Agencies Limited | Hong Kong |
159 | Marsh & McLennan Agency A/S | Denmark |
160 | Marsh & McLennan Agency Limited | New Zealand |
161 | Marsh & McLennan Agency LLC | United States |
162 | Marsh & McLennan Agency Pty Ltd. | Australia |
163 | Marsh & McLennan Argentina SA Corredores de Reaseguros | Argentina |
164 | Marsh & McLennan Companies Acquisition Funding Limited | United Kingdom |
165 | Marsh & McLennan Companies Acquisition Limited | United Kingdom |
166 | Marsh & McLennan Companies BVBA/SPRL | Belgium |
167 | Marsh & McLennan Companies Finance Center (Luxembourg) S.a.r.l. | Luxembourg |
168 | Marsh & McLennan Companies France S.A.S. | France |
169 | Marsh & McLennan Companies Holdings (Luxembourg) S.a.r.l. | Luxembourg |
170 | Marsh & McLennan Companies Regional Holdings Sarl | Luxembourg |
171 | Marsh & McLennan Companies Services BV | Netherlands |
172 | Marsh & McLennan Companies UK Limited | United Kingdom |
173 | Marsh & McLennan Companies, Inc. | United States |
174 | Marsh & McLennan Deutschland GmbH | Germany |
175 | Marsh & McLennan Europe S.a.r.l. | Luxembourg |
176 | Marsh & McLennan Global Broking (Bermuda) Limited | Bermuda |
177 | Marsh & McLennan GP I, Inc. | United States |
178 | Marsh & McLennan Holdings (Canada) ULC | Canada |
179 | Marsh & McLennan Holdings, Inc. | United States |
180 | Marsh & McLennan Innovation Centre | Ireland |
181 | Marsh & McLennan Innovation Centre Holdings II | Bermuda |
182 | Marsh & McLennan Innovation Centre Holdings S.a.r.l | Luxembourg |
183 | Marsh & McLennan Insurance Services Limited | Hong Kong |
184 | Marsh & McLennan Management Services (Bermuda) Limited | Bermuda |
185 | Marsh & McLennan Risk Capital Holdings, Ltd. | United States |
186 | Marsh & McLennan Servicios, S.A. De C.V. | Mexico |
187 | Marsh & McLennan Shared Services Canada Limited/Services partags Marsh & McLennan Canada limitee | Canada |
188 | Marsh & McLennan Shared Services Corporation | United States |
189 | Marsh & McLennan, Incorporated (for dissolution) | United States |
190 | Marsh (Bahrain) Company SPC | Bahrain |
191 | Marsh (China) Insurance Brokers Co., Ltd. | China |
192 | Marsh (Hong Kong) Limited | Hong Kong |
193 | Marsh (Insurance Brokers) LLP | Kazakhstan |
194 | Marsh (Insurance Services) Limited | United Kingdom |
195 | Marsh (Isle of Man) Limited | Isle of Man |
196 | Marsh (Malawi) Limited | Malawi |
197 | Marsh (Middle East) Limited | United Kingdom |
198 | Marsh (Namibia) (Pty) Limited | Namibia |
199 | Marsh (Pty) Limited | South Africa |
200 | Marsh (Risk Consulting) LLP | Kazakhstan |
201 | Marsh (Singapore) Pte. Ltd. | Singapore |
202 | Marsh A/S | Denmark |
203 | Marsh AB | Sweden |
204 | Marsh Advantage Insurance Holdings Pty Ltd | Australia |
205 | Marsh Advantage Insurance Pty Ltd. | Australia |
206 | Marsh Africa (Pty) Limited | South Africa |
207 | Marsh AG | Switzerland |
208 | Marsh Argentina S.R.L. | Argentina |
209 | Marsh AS | Norway |
210 | Marsh Associates (Pty) Ltd | South Africa |
211 | Marsh Austria G.m.b.H. | Austria |
212 | Marsh Aviation Insurance Broking Pty Ltd (for dissolution) | Australia |
213 | Marsh B.V. | Netherlands |
214 | Marsh Botswana (Proprietary) Limited | Botswana |
215 | Marsh Brockman y Schuh Agente de Seguros y de Fianzas, S.A. de C.V. | Mexico |
216 | Marsh Broker de Asigurare-Reasigurare S.R.L. | Romania |
217 | Marsh Broker Japan, Inc. | Japan |
218 | Marsh Brokers (Hong Kong) Limited | Hong Kong |
219 | Marsh Brokers Limited | United Kingdom |
220 | Marsh Canada Limited/Marsh Canada Limitee | Canada |
221 | Marsh ClearSight LLC | United States |
222 | Marsh Compensation Technologies Administration (Pty) Limited | South Africa |
223 | Marsh Corporate Services (Barbados) Limited | Barbados |
224 | Marsh Corporate Services Isle of Man Ltd | Isle of Man |
225 | Marsh Corporate Services Limited | United Kingdom |
226 | Marsh Corporate Services Malta Limited | Malta |
227 | Marsh Corretora de Seguros Ltda. | Brazil |
228 | Marsh d.o.o. Beograd | Serbia |
229 | Marsh d.o.o. za posredovanje u osiguranju | Croatia |
230 | Marsh Egypt LLC | Egypt |
231 | Marsh Emirates Insurance Brokerage and Consultancy LLC | United Arab Emirates |
232 | Marsh Employee Benefits Limited | Ireland |
233 | Marsh Employee Benefits Zimbabwe (Private) Ltd | Zimbabwe |
234 | Marsh EOOD | Bulgaria |
235 | Marsh Eurofinance B.V. | Netherlands |
236 | Marsh Europe S.A. | Belgium |
237 | Marsh Financial Advisory Services Limited | China |
238 | Marsh For Insurance Services [Egypt] | Egypt |
239 | Marsh For Insurance Services [Jordan] | Jordan |
240 | Marsh Franco Acra, S.A. | Dominican Republic |
241 | Marsh Global Markets Colombia Ltda Corredor de Reaseguro | Colombia |
242 | Marsh GmbH | Germany |
243 | Marsh GSC Administracao e Corretagem de Seguros Ltda. | Brazil |
244 | Marsh Holding AB | Sweden |
245 | Marsh Holdings (Pty) Limited | South Africa |
246 | Marsh Holdings B.V. | Netherlands |
247 | Marsh IAS Management Services (Bermuda) Ltd. | Bermuda |
248 | Marsh i-Connect (Pty) Limited | South Africa |
249 | Marsh India Insurance Brokers Private Limited | India |
250 | Marsh Insurance & Investments LLC | United States |
251 | Marsh Insurance and Reinsurance Brokers LLC | Azerbaijan |
252 | Marsh Insurance Brokers | United Kingdom |
253 | Marsh Insurance Brokers (Macao) Limited | Macao |
254 | Marsh Insurance Brokers (Malaysia) Sdn Bhd | Malaysia |
255 | Marsh Insurance Brokers (Private) Limited | Zimbabwe |
256 | Marsh Insurance Brokers Limited | Cyprus |
257 | Marsh Insurance Consulting Saudi Arabia | Saudi Arabia |
258 | Marsh Insurance Management Services Namibia (Pty) Limited | Namibia |
259 | Marsh Intermediaries, Inc. (for dissolution) | United States |
260 | Marsh International Broking Holdings Limited | United Kingdom |
261 | Marsh International Holdings II, Inc. | United States |
262 | Marsh International Holdings, Inc. | United States |
263 | Marsh Investment B.V. | Netherlands |
264 | Marsh Investment Services Limited | United Kingdom |
265 | Marsh Ireland Holdings Limited | Ireland |
266 | Marsh Israel (1999) Ltd. | Israel |
267 | Marsh Israel (Holdings) Ltd. | Israel |
268 | Marsh Israel Consultants Ltd. | Israel |
269 | Marsh Israel Insurance Agency Ltd. | Israel |
270 | Marsh Israel International Brokers Ltd. (in liquidation) | Israel |
271 | Marsh Japan, Inc. | Japan |
272 | Marsh JCS Inc. | United States |
273 | Marsh Kft. | Hungary |
274 | Marsh Kindlustusmaakler AS | Estonia |
275 | Marsh Korea, Inc. | Korea, Republic of |
276 | Marsh Life & Pension Oy | Finland |
277 | Marsh Limited | United Kingdom |
278 | Marsh Limited [PNG] | Papua New Guinea |
279 | Marsh Limited [Fiji] | Fiji |
280 | Marsh Limited [New Zealand] | New Zealand |
281 | Marsh LLC | United States |
282 | Marsh LLC [Ukraine] | Ukraine |
283 | Marsh LLC Insurance Brokers | Greece |
284 | Marsh Ltd. [Wisconsin] | United States |
285 | Marsh Management Services (Bahamas) Ltd. | Bahamas |
286 | Marsh Management Services (Barbados) Limited | Barbados |
287 | Marsh Management Services (Cayman) Ltd. | Cayman Islands |
288 | Marsh Management Services (Dubai) Limited | United Arab Emirates |
289 | Marsh Management Services (Dublin) Limited | Ireland |
290 | Marsh Management Services (Labuan) Limited | Malaysia |
291 | Marsh Management Services (USVI) Ltd. | United States |
292 | Marsh Management Services Guernsey Limited | Guernsey |
293 | Marsh Management Services Inc. | United States |
294 | Marsh Management Services Isle of Man Limited | Isle of Man |
295 | Marsh Management Services Jersey Limited | Jersey |
296 | Marsh Management Services Luxembourg S.a.r.l. | Luxembourg |
297 | Marsh Management Services Malta Limited | Malta |
298 | Marsh Management Services Singapore Pte. Ltd. | Singapore |
299 | Marsh Management Services Sweden AB | Sweden |
300 | Marsh Marine & Energy AB | Sweden |
301 | Marsh Marine Nederland B.V. | Netherlands |
302 | Marsh Medical Consulting GmbH | Germany |
303 | Marsh Mercer Holdings (Australia) Pty Ltd | Australia |
304 | Marsh Micronesia, Inc. | Guam |
305 | Marsh Nest Inc. | United States |
306 | Marsh Oman LLC | Oman |
307 | Marsh Oy | Finland |
308 | Marsh PB Co., Ltd. | Thailand |
309 | Marsh Philippines, Inc. | Philippines |
310 | Marsh Privat, A.I.E. | Spain |
311 | Marsh Private Client Life Insurance Services | United States |
312 | Marsh Pty. Ltd. | Australia |
313 | Marsh Qatar LLC | Qatar |
314 | Marsh RE S.A.C. Corredores de Reaseguros | Peru |
315 | Marsh Rehder Consultoria S.A. (MRC) | Peru |
316 | Marsh Rehder S.A. Corredores de Seguros | Peru |
317 | Marsh Resolutions Pty Limited | Australia |
318 | Marsh Risk Consulting B.V. | Netherlands |
319 | Marsh Risk Consulting Limitada | Chile |
320 | Marsh Risk Consulting Ltda. | Colombia |
321 | Marsh Risk Consulting Services S.r.L. | Italy |
322 | Marsh Risk Consulting, S.A. | Panama |
323 | Marsh Risk Consulting, S.L. | Spain |
324 | Marsh S.A. Corredores De Seguros | Chile |
325 | Marsh S.A.S. | France |
326 | Marsh S.p.A. | Italy |
327 | Marsh s.r.o. | Czech Republic |
328 | Marsh s.r.o. [Slovakia] | Slovakia |
329 | Marsh SA | Luxembourg |
330 | Marsh SA [Argentina] | Argentina |
331 | Marsh SA [Belgium] | Belgium |
332 | Marsh SA [Uruguay] | Uruguay |
333 | Marsh Saldana Inc. | Puerto Rico |
334 | Marsh Saudi Arabia Insurance & Reinsurance Brokers | Saudi Arabia |
335 | Marsh Secretarial Services Limited | United Kingdom |
336 | Marsh Services Limited | United Kingdom |
337 | Marsh Services Spolka z.o.o. | Poland |
338 | Marsh SIA | Latvia |
339 | Marsh Sigorta ve Reasurans Brokerligi Anonim Sirketi | Turkey |
340 | Marsh Spolka z.o.o. | Poland |
341 | Marsh Szolgaltato Kft. | Hungary |
342 | Marsh Takaful Brokers (Malaysia) Sdn Bhd | Malaysia |
343 | Marsh Treasury Services (Dublin) Limited | Ireland |
344 | Marsh Treasury Services Limited | United Kingdom |
345 | Marsh Tunisia S.a.r.l. | Tunisia |
346 | Marsh Uganda Limited | Uganda |
347 | Marsh UK Limited | United Kingdom |
348 | Marsh USA (India) Inc. | United States |
349 | Marsh USA Borrower LLC | United States |
350 | Marsh USA Inc. | United States |
351 | Marsh Venezuela C.A. Sociedad de Corretaje de Seguros | Venezuela |
352 | Marsh Vietnam Insurance Broking Company Ltd | Vietnam |
353 | Marsh Zambia Limited | Zambia |
354 | Marsh, Lda. | Portugal |
355 | Marsh, S.A. Mediadores de Seguros | Spain |
356 | Matthiessen Assurans AB | Sweden |
357 | Mercer (Argentina) S.A. | Argentina |
358 | Mercer (Australia) Pty Ltd | Australia |
359 | Mercer (Austria) GmbH | Austria |
360 | Mercer (Belgium) SA-NV | Belgium |
361 | Mercer (Canada) Limited/Mercer (Canada) Limitee | Canada |
362 | Mercer (Colombia) Ltda. | Colombia |
363 | Mercer (Danmark) A/S | Denmark |
364 | Mercer (Finland) OY | Finland |
365 | Mercer (France) SAS | France |
366 | Mercer (Hong Kong) Limited | Hong Kong |
367 | Mercer (Ireland) Limited | Ireland |
368 | Mercer (Malaysia) Sdn. Bhd. | Malaysia |
369 | Mercer (N.Z.) Limited | New Zealand |
370 | Mercer (Nederland) B.V. | Netherlands |
371 | Mercer (Norge) AS | Norway |
372 | Mercer (Polska) Sp.z o.o. | Poland |
373 | Mercer (Portugal) Lda | Portugal |
374 | Mercer (Singapore) Pte. Ltd. | Singapore |
375 | Mercer (Sweden) AB | Sweden |
376 | Mercer (Switzerland) SA | Switzerland |
377 | Mercer (Taiwan) Ltd. | Taiwan |
378 | Mercer (Thailand) Ltd. | Thailand |
379 | Mercer (US) Inc. | United States |
380 | Mercer Africa Limited | United Kingdom |
381 | Mercer Asesores de Seguros S.A. | Argentina |
382 | Mercer Broking Ltd. | Taiwan |
383 | Mercer Consultation (Quebec) Ltee. | Canada |
384 | Mercer Consulting (Australia) Pty Ltd | Australia |
385 | Mercer Consulting (Chile) Ltda. | Chile |
386 | Mercer Consulting (China) Limited | China |
387 | Mercer Consulting (France) SAS | France |
388 | Mercer Consulting (India) Private Limited | India |
389 | Mercer Consulting (South Africa) Pty Limited | South Africa |
390 | Mercer Consulting B.V. | Netherlands |
391 | Mercer Consulting Group, Inc. | United States |
392 | Mercer Consulting Holdings Sdn. Bhd. | Malaysia |
393 | Mercer Consulting Limited | United Kingdom |
394 | Mercer Consulting Middle East Limited | United Arab Emirates |
395 | Mercer Consulting Venezuela, C.A. | Venezuela |
396 | Mercer Consulting, S.L.U. | Spain |
397 | Mercer Corredores de Seguros Ltda. | Chile |
398 | Mercer Corretora de Seguros Ltda | Brazil |
399 | Mercer Danismanlik Anonim Sirketi | Turkey |
400 | Mercer Deutschland GmbH | Germany |
401 | Mercer Employee Benefits - Medicacao de Seguros Unipessoal Lda. | Portugal |
402 | Mercer Employee Benefits Limited | United Kingdom |
403 | Mercer Employee Benefits OY | Finland |
404 | Mercer Financial Advice (Australia) Pty Ltd | Australia |
405 | Mercer Financial Services Limited | Ireland |
406 | Mercer Financial Services Middle East Limited | United Arab Emirates |
407 | Mercer Global Investments Canada Limited | Canada |
408 | Mercer Global Investments Europe Limited | Ireland |
409 | Mercer Global Investments Management Limited | Ireland |
410 | Mercer Health & Benefits (Singapore) Pte. Ltd. | Singapore |
411 | Mercer Health & Benefits Administration LLC | United States |
412 | Mercer Health & Benefits LLC | United States |
413 | Mercer Holdings, Inc. | United States |
414 | Mercer Holdings, Inc. [Philippines] | Philippines |
415 | Mercer HR Consulting Borrower LLC | United States |
416 | Mercer HR Services, LLC | United States |
417 | Mercer Human Resource Consulting Ltda | Brazil |
418 | Mercer Human Resource Consulting S.A. de C.V. | Mexico |
419 | Mercer Investment Consulting Limited | Ireland |
420 | Mercer Investment Consulting LLC | United States |
421 | Mercer Investment Management, Inc. | United States |
422 | Mercer Investment Solutions (Singapore) Pte. Ltd. | Singapore |
423 | Mercer Investment Solutions Ltd. | Japan |
424 | Mercer Investments (Australia) Limited | Australia |
425 | Mercer Investments (Hong Kong) Limited | Hong Kong |
426 | Mercer Investments (Korea) Co., Ltd. | Korea, Republic of |
427 | Mercer Investments (New Zealand) Limited | New Zealand |
428 | Mercer Ireland Holdings Limited | Ireland |
429 | Mercer Italia Srl Socio Unico | Italy |
430 | Mercer Japan Ltd. | Japan |
431 | Mercer Korea Co. Ltd. | Korea, Republic of |
432 | Mercer Limited | United Kingdom |
433 | Mercer LLC | United States |
434 | Mercer Master Trustees Limited | Ireland |
435 | Mercer Mauritius Ltd. | Mauritius |
436 | Mercer MC Consulting Borrower LLC | United States |
437 | Mercer Oliver Wyman Holding B.V. | Netherlands |
438 | Mercer Outsourcing (Australia) Pty Ltd | Australia |
439 | Mercer Outsourcing, S.L.U. | Spain |
440 | Mercer Pensionsraadgivning A/S | Denmark |
441 | Mercer Philippines, Inc. | Philippines |
442 | Mercer Private Investment Partners IV General Partner S.a.r.l. | Luxembourg |
443 | Mercer Private Markets Advisers (US) AG | Switzerland |
444 | Mercer Private Markets AG | Switzerland |
445 | Mercer Sigorta Brokerligi Anonim Sirketi | Turkey |
446 | Mercer Superannuation (Australia) Limited | Australia |
447 | Mercer System Services LLC | United States |
448 | Mercer Treuhand GmbH | Germany |
449 | Mercer Trust Company | United States |
450 | Mercer Trustees Limited | Ireland |
451 | Mercer Trustees Limited | United Kingdom |
452 | Mercer WorkforcePro LLC | United States |
453 | Mercer, Agente de Seguros, S.A. de C.V. | Mexico |
454 | Mercury Insurance Services Pty Ltd | Australia |
455 | MM Risk Services Pty Ltd (for dissolution) | Australia |
456 | MMA Mid-Atlantic Employee LLC | United States |
457 | MMA Securities LLC | United States |
458 | MMC (Singapore) Holdings Pte. Ltd. | Singapore |
459 | MMC 28 State Street Holdings Inc. (for dissolution) | United States |
460 | MMC Borrower LLC | United States |
461 | MMC Capital, Inc. | United States |
462 | MMC France Holdings (Luxembourg) S.a.r.l. | Luxembourg |
463 | MMC GP III, Inc. | United States |
464 | MMC Holdings (Australia) Pty Ltd | Australia |
465 | MMC Holdings (New Zealand) ULC | New Zealand |
466 | MMC Holdings (UK) Limited | United Kingdom |
467 | MMC International Holdings LLC | United States |
468 | MMC International Limited | United Kingdom |
469 | MMC International Treasury Centre Limited | United Kingdom |
470 | MMC Realty, Inc. | United States |
471 | MMC Securities (Europe) Limited | United Kingdom |
472 | MMC Securities LLC | United States |
473 | MMC Treasury Holdings (UK) Limited | United Kingdom |
474 | MMC UK Group Limited | United Kingdom |
475 | MMC UK Pension Fund Trustee Limited | United Kingdom |
476 | MMOW Limited | United Kingdom |
477 | MMRC LLC | United States |
478 | MOW Holding LLC | United States |
479 | MPIP III GP LLC | United States |
480 | MPIP IV GP LLC | United States |
481 | Muir Beddal (Zimbabwe) Limited | Zimbabwe |
482 | National Economic Research Associates, Inc. | United States |
483 | National Economic Research Associates, Inc. | United States |
484 | NERA Australia Pty. Ltd. | Australia |
485 | NERA do Brasil Ltda. (for dissolution) | Brazil |
486 | NERA Economic Consulting GmbH | Germany |
487 | NERA Economic Consulting Limited | New Zealand |
488 | NERA S.R.L. | Italy |
489 | NERA SAS | France |
490 | NERA UK Limited | United Kingdom |
491 | NetComp Insurance Corp. | United States |
492 | Neuburger Noble Lowndes GmbH | Germany |
493 | Normandy Reinsurance Company Limited | Bermuda |
494 | Obamadrama Limited | United Kingdom |
495 | Oliver Wyman (Bermuda) Limited | Bermuda |
496 | Oliver Wyman (Hong Kong) Limited | Hong Kong |
497 | Oliver Wyman AB | Sweden |
498 | Oliver Wyman Actuarial Consulting, Inc. | United States |
499 | Oliver Wyman AG | Switzerland |
500 | Oliver Wyman B.V. | Netherlands |
501 | Oliver Wyman Consulting (Shanghai) Ltd | China |
502 | Oliver Wyman Consulting Limited (in liquidation) | United Kingdom |
503 | Oliver Wyman Consultoria em Estrategia de Negocios Ltda. | Brazil |
504 | Oliver Wyman Energy Consulting Limited | United Kingdom |
505 | Oliver Wyman Energy Group Limited | United Kingdom |
506 | Oliver Wyman Energy Holdings Limited | United Kingdom |
507 | Oliver Wyman Energy US Limited | United Kingdom |
508 | Oliver Wyman FZ-LLC | United Arab Emirates |
509 | Oliver Wyman GmbH | Germany |
510 | Oliver Wyman Group KK | Japan |
511 | Oliver Wyman Limited | United Kingdom |
512 | Oliver Wyman LLC | Russian Federation |
513 | Oliver Wyman Ltd. | Korea, Republic of |
514 | Oliver Wyman Pte. Ltd. | Singapore |
515 | Oliver Wyman Pty. Ltd. | Australia |
516 | Oliver Wyman S.L. | Spain |
517 | Oliver Wyman S.r.l. | Italy |
518 | Oliver Wyman SAS | France |
519 | Oliver Wyman Sdn. Bhd. | Malaysia |
520 | Oliver Wyman Servicios, S. de R.L. de C.V. | Mexico |
521 | Oliver Wyman SNC | France |
522 | Oliver Wyman sp. z o.o. | Poland |
523 | Oliver Wyman, Inc. | United States |
524 | Oliver Wyman, S. de R.L. de C.V. | Mexico |
525 | Oliver, Wyman Corporate Risk Consulting Limited/Oliver, Wyman Consultation en risques des entreprises limitee (for dissolution) | Canada |
526 | Oliver, Wyman Limited/Oliver, Wyman limitee | Canada |
527 | Omega Indemnity (Bermuda) Limited | Bermuda |
528 | Organizacion Brockman y Schuh S.A. de C.V. | Mexico |
529 | Organization Resources Counselors Limited | United Kingdom |
530 | Pallas Marsh Corretagem de Seguros Ltda. | Brazil |
531 | Peart Holdings Limited | United Kingdom |
532 | Peart Insurance Brokers Limited | United Kingdom |
533 | Pension Trustees Limited | United Kingdom |
534 | Pensionsservice Benefit Network Sverige AB | Sweden |
535 | Perils AG | Switzerland |
536 | PFT Limited | United Kingdom |
537 | PI Indemnity Company, Limited | Ireland |
538 | Potomac Insurance Managers, Inc. | United States |
539 | Professional Claims Handling Limited | United Kingdom |
540 | PT Marsh Indonesia | Indonesia |
541 | PT Marsh Reinsurance Brokers Indonesia | Indonesia |
542 | PT Mercer Indonesia | Indonesia |
543 | PT Oliver Wyman Indonesia | Indonesia |
544 | PT Quantum Computing Services | Indonesia |
545 | PT Quantum Investments | Indonesia |
546 | PT Quantum Support Services | Indonesia |
547 | Pymetrics, Inc. | United States |
548 | R R B Beratungsgesellschaft fuer Altersversorgung mbh | Germany |
549 | R. Mees & Zoonen Assuradeuren B.V. | Netherlands |
550 | R. Mees & Zoonen Holdings B.V. | Netherlands |
551 | Resource Benefit Associates | Nigeria |
552 | Rivers Group Limited | United Kingdom |
553 | Riverside Insurance Brokers Limited | United Kingdom |
554 | Rockefeller Risk Advisors, Inc. (for dissolution) | United States |
555 | Rutherfoord International, Inc. | United States |
556 | SABB Insurance Services Limited | Saudi Arabia |
557 | SAFCAR-Marsh | Mali |
558 | SCIB (Bermuda) Limited | Bermuda |
559 | SCM Global Real Estate Select GP LLC | Delaware |
560 | SCM Infrastructure General Partner S.a r.l. | Luxembourg |
561 | SCM International Private Equity Select III GP LLC | Delaware |
562 | SCM LT General Partner S.a.r.l. | Luxembourg |
563 | SCM PE General Partner S.a.r.l. | Luxembourg |
564 | SCM PE II GP Ltd. | United Kingdom |
565 | SCM PE II Scotland GP Ltd. | Scotland |
566 | SCM Strategic Capital Management (Luxembourg) S.a.r.l. | Luxembourg |
567 | SCM Strategic Capital Management Asia Ltd | Hong Kong |
568 | Seabury & Smith Borrower LLC | United States |
569 | Seabury & Smith, Inc. | United States |
570 | Second Opinion Insurance Services (for dissolution) | United States |
571 | Sedgwick (Bermuda) Limited | Bermuda |
572 | Sedgwick (Holdings) Pty. Limited | Australia |
573 | Sedgwick Consulting Group Limited | United Kingdom |
574 | Sedgwick Dineen Group Limited | Ireland |
575 | Sedgwick Financial Services Limited | United Kingdom |
576 | Sedgwick Forbes Middle East Limited | Jersey |
577 | Sedgwick Group (Australia) Pty. Limited | Australia |
578 | Sedgwick Group (Bermuda) Limited | Bermuda |
579 | Sedgwick Group (Zimbabwe) Limited | Zimbabwe |
580 | Sedgwick Group Limited | United Kingdom |
581 | Sedgwick Holdings (Private) Limited | Zimbabwe |
582 | Sedgwick Internationaal B.V. | Netherlands |
583 | Sedgwick Limited | United Kingdom |
584 | Sedgwick Management Services (Barbados) Limited | Barbados |
585 | Sedgwick Management Services (Singapore) Pte Limited | Singapore |
586 | Sedgwick Noble Lowndes (UK) Limited | United Kingdom |
587 | Sedgwick Noble Lowndes Group Limited | United Kingdom |
588 | Sedgwick Noble Lowndes Limited | Hong Kong |
589 | Sedgwick Noble Lowndes Limited | United Kingdom |
590 | Sedgwick Overseas Investments Limited | United Kingdom |
591 | Sedgwick Private Limited | Singapore |
592 | Sedgwick Re Asia Pacific (Consultants) Pte Ltd (for dissolution) | Singapore |
593 | Sedgwick Trustees Limited | United Kingdom |
594 | Sedgwick UK Risk Services Limited | United Kingdom |
595 | Sedgwick Ulster Pension Trustees Limited | United Kingdom |
596 | Seguros Morrice y Urrutia S.A. (SEMUSA) | Panama |
597 | Settlement Trustees Limited | United Kingdom |
598 | Shanghai Mercer Insurance Brokers Company Ltd. | China |
599 | Shorewest Insurance Associates, LLC | United States |
600 | SICAR Marsh S.a.r.l. | Burkina Faso |
601 | Smart Insurance Service Co., Ltd. | Korea, Republic of |
602 | SME Insurance Services Limited | United Kingdom |
603 | SMEI Group Limited | United Kingdom |
604 | Smith Long Term Disability Management Group, Inc. | United States |
605 | Societe d'Assurances et de Participation Guian SA | France |
606 | Societe Normandie Conseil Assurances NCA, S.a.r.l | France |
607 | Software Underwriting Systems Limited | United Kingdom |
608 | Southern Marine & Aviation Underwriters, Inc. | United States |
609 | Southern Marine & Aviation, Inc. | United States |
610 | Strivio Limited | Cyprus |
611 | Sudzucker Versicherungs-Vermittlungs GmbH | Germany |
612 | Talent Tech Labs, LLC | United States |
613 | Tequesta Agency, Inc. | United States |
614 | Tequesta Insurance Advisors, LLC | United States |
615 | The Carpenter Management Corporation | United States |
616 | The Insurance Partnership Commercial Finance Limited | United Kingdom |
617 | The Insurance Partnership Holdings Limited | United Kingdom |
618 | The Insurance Partnership Inspection Services Limited | United Kingdom |
619 | The Insurance Partnership Services Limited | United Kingdom |
620 | The Positive Ageing Company Limited | United Kingdom |
621 | The Purple Partnership Limited | United Kingdom |
622 | The Schinnerer Group, Inc. | United States |
623 | Think Big I Limited | United Kingdom |
624 | Tobelan S.A. | Uruguay |
625 | Torrent Government Contracting Services, LLC | Delaware |
626 | Torrent Insurance Services, LLC | Delaware |
627 | Torrent Technologies, Inc. | Delaware |
628 | Tower Hill Limited | United Kingdom |
629 | Tower Place Developments (West) Limited | United Kingdom |
630 | Tower Place Developments Limited | United Kingdom |
631 | U.T.E. AMG | Spain |
632 | U.T.E. Marsh - Aon Gil y Carvajal (in liquidation) | Spain |
633 | U.T.E. Marsh - Caja Castilla La Mancha Junta de Comunidades | Spain |
634 | U.T.E. Marsh - CCM SESCAM | Spain |
635 | U.T.E. Marsh - Disbrok Diputacion de Badajoz | Spain |
636 | U.T.E. Marsh - Disbrok Junta 2006 | Spain |
637 | U.T.E. Marsh - Efir Gestion | Spain |
638 | U.T.E. Marsh - Salvado Reus | Spain |
639 | U.T.E. Marsh - Salvado Reus 2012 | Spain |
640 | U.T.E. Marsh - Salvado Vila-Seca 2010 | Spain |
641 | U.T.E. Marsh - Verssa | Spain |
642 | U.T.E. Marsh - Zihurko (in liquidation) | Spain |
643 | UAD BB Marsh Lietuva | Lithuania |
644 | Vezina & Associes Inc. | Canada |
645 | Vezina Assurances Inc. | Canada |
646 | Victor O. Schinnerer & Co. (Bermuda), Ltd. | Bermuda |
647 | Victor O. Schinnerer & Company Limited | United Kingdom |
648 | Victor O. Schinnerer & Company, Inc. | United States |
649 | Victoria Hall Company Limited | Bermuda |
650 | William M. Mercer (Canada) Limited/William M. Mercer (Canada) Limitee | Canada |
651 | William M. Mercer AB | Sweden |
652 | William M. Mercer Comercio, Consultoria e Servicos Ltda. | Brazil |
Date: | February 24, 2016 | /s/ Daniel S. Glaser | |
Daniel S. Glaser | |||
President and Chief Executive Officer |
Date: | February 24, 2016 | /s/ Mark C. McGivney | |
Mark C. McGivney | |||
Chief Financial Officer |
1. | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Marsh & McLennan Companies, Inc. |
Date: | February 24, 2016 | /s/ Daniel S. Glaser | |
Daniel S. Glaser | |||
President and Chief Executive Officer |
Date: | February 24, 2016 | /s/ Mark C. McGivney | |
Mark C. McGivney | |||
Chief Financial Officer |
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Feb. 18, 2016 |
Jun. 30, 2015 |
|
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MMC | ||
Entity Registrant Name | MARSH & MCLENNAN COMPANIES, INC. | ||
Entity Central Index Key | 0000062709 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 521,227,085 | ||
Entity Public Float | $ 30,066,092,147 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income before non-controlling interests | $ 1,636 | $ 1,497 | $ 1,385 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | (639) | (527) | (86) |
Unrealized investment income | 1 | 0 | 1 |
Gain (loss) related to pension/post-retirement plans | 337 | (1,085) | 1,213 |
Other comprehensive (loss) income, before tax | (301) | (1,612) | 1,128 |
Income tax expense (credit) on other comprehensive (loss) income | 72 | (386) | 442 |
Other comprehensive (loss) income, net of tax | (373) | (1,226) | 686 |
Comprehensive income | 1,263 | 271 | 2,071 |
Less: Comprehensive income attributable to non-controlling interests | 37 | 32 | 28 |
Comprehensive income attributable to the Company | $ 1,226 | $ 239 | $ 2,043 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Preferred stock, shares authorized (in shares) | 6,000,000 | 6,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1.0 | $ 1.0 |
Common stock, shares authorized (in shares) | 1,600,000,000 | 1,600,000,000 |
Common stock, shares issued (in shares) | 560,641,640 | 560,641,640 |
Treasury shares, shares (in shares) | 38,743,686 | 20,499,596 |
Consolidated Statements Of Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Statement of Stockholders' Equity [Abstract] | |||
Dividend equivalents per share (in dollars per share) | $ 1.18 | $ 1.06 | $ 0.96 |
Dividends declared per share (in dollars per share) | $ 1.18 | $ 1.06 | $ 0.96 |
Summary of Significant Accounting Policies |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations: Marsh & McLennan Companies, Inc. (the "Company”), a global professional services firm, is organized based on the different services that it offers. Under this organizational structure, the Company’s two business segments are Risk and Insurance Services and Consulting. The Risk and Insurance Services segment provides risk management activities and insurance broking, reinsurance broking and insurance program management services for businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Company conducts business in this segment through Marsh and Guy Carpenter. The Company conducts business in its Consulting segment through two main business groups. Mercer provides consulting expertise, advice, services and solutions in the areas of health, retirement, talent and investments. Oliver Wyman Group provides specialized management and economic and brand consulting services. Acquisitions impacting the Risk and Insurance Services and Consulting segments are discussed in Note 4 below. Principles of Consolidation: The accompanying consolidated financial statements include all wholly-owned and majority-owned subsidiaries. All significant inter-company transactions and balances have been eliminated. Fiduciary Assets and Liabilities: In its capacity as an insurance broker or agent, the Company generally collects premiums from insureds and, after deducting its commissions, remits the premiums to the respective insurance underwriters. The Company also collects claims or refunds from underwriters on behalf of insureds. Unremitted insurance premiums and claims proceeds are held by the Company in a fiduciary capacity. Risk and Insurance Services revenue includes interest on fiduciary funds of $21 million, $24 million and $27 million in 2015, 2014 and 2013, respectively. The Consulting segment recorded fiduciary interest income of $4 million, $6 million and $5 million in 2015, 2014 and 2013, respectively. Since fiduciary assets are not available for corporate use, they are shown in the consolidated balance sheets as an offset to fiduciary liabilities. Net uncollected premiums and claims and the related payables were $6.9 billion and $7.3 billion at December 31, 2015 and 2014, respectively. The Company is not a principal to the contracts under which the right to receive premiums or the right to receive reimbursement of insured losses arises. Net uncollected premiums and claims and the related payables are, therefore, not assets and liabilities of the Company and are not included in the accompanying consolidated balance sheets. In certain instances, the Company advances premiums, refunds or claims to insurance underwriters or insureds prior to collection. These advances are made from corporate funds and are reflected in the accompanying consolidated balance sheets as receivables. Mercer manages approximately $21 billion of assets in trusts or funds for which Mercer’s management or trustee fee is considered a variable interest. Mercer is not the primary beneficiary of these trusts or funds. Mercer’s only variable interest in any of these trusts or funds is its unpaid fees, if any. Mercer’s maximum exposure to loss of its interests is, therefore, limited to collection of its fees. Revenue: Risk and Insurance Services revenue includes insurance commissions, fees for services rendered and interest income on certain fiduciary funds. Insurance commissions and fees for risk transfer services generally are recorded as of the effective date of the applicable policies or, in certain cases (primarily in the Company's reinsurance broking operations), as of the effective date or billing date, whichever is later. A reserve for policy cancellation is provided based on historic and current data on cancellations. Consideration for fee arrangements covering multiple insurance placements, the provision of risk management and/or other services are allocated to all deliverables on the basis of their relative selling prices. Fees for non-risk transfer services provided to clients are recognized over the period in which the services are provided, using a proportional performance model. Fees resulting from achievement of certain performance thresholds are recorded when such levels are attained and such fees are not subject to forfeiture. Consulting revenue includes fees paid by clients for advice and services and commissions from insurance companies for the placement of individual and group contracts. Fee revenue for engagements where remuneration is based on time plus out-of-pocket expenses is recognized based on the amount of time consulting professionals expend on the engagement. For fixed fee engagements, revenue is recognized using a proportional performance model. Revenue from insurance commissions not subject to a fee arrangement is recorded over the effective period of the applicable policies. Revenue for asset based fees is recognized on an accrual basis by applying the daily/monthly rate as contractually agreed with the client to the applicable net asset value. On a limited number of engagements, performance fees may also be earned for achieving certain prescribed performance criteria. Such fees are recognized when the performance criteria have been achieved and, when required, agreed to by the client. Reimbursable expenses incurred by professional staff in the generation of revenue and sub-advisory fees related to the majority of funds in the investment management business are included in revenue and the related expenses are included in other operating expenses. Cash and Cash Equivalents: Cash and cash equivalents primarily consist of certificates of deposit and time deposits, with original maturities of three months or less, and money market funds. The estimated fair value of the Company's cash and cash equivalents approximates their carrying value. The Company is required to maintain operating funds primarily related to regulatory requirements outside the U.S. or as collateral under captive insurance arrangements. At December 31, 2015, the Company maintained $209 million related to these regulatory requirements. Fixed Assets: Fixed assets are stated at cost less accumulated depreciation and amortization. Expenditures for improvements are capitalized. Upon sale or retirement, the cost and related accumulated depreciation and amortization are removed from the accounts and any gain or loss is reflected in income. Expenditures for maintenance and repairs are charged to operations as incurred. Depreciation of buildings, building improvements, furniture, and equipment is provided on a straight-line basis over the estimated useful lives of these assets. Furniture and equipment is depreciated over periods ranging from three to ten years. Leasehold improvements are amortized on a straight-line basis over the periods covered by the applicable leases or the estimated useful life of the improvement, whichever is less. Buildings are depreciated over periods ranging from thirty to forty years. The Company periodically reviews long-lived assets for impairment whenever events or changes indicate that the carrying value of assets may not be recoverable. The components of fixed assets are as follows:
Investments: The Company holds investments in private companies and private equity funds. Investments in private equity funds are accounted for under the equity method of accounting using a consistently applied three-month lag period adjusted for any known significant changes from the lag period to the reporting date of the Company. The underlying private equity funds follow investment company accounting, where investments within the fund are carried at fair value. The Company records in earnings, investment gains/losses for its proportionate share of the change in fair value of the funds. Investments using the equity method of accounting are included in other assets in the consolidated balance sheets. As part of the sale of MMC Capital in 2005, the Company retained the rights to receive certain performance fees related to the Trident II and Trident III private equity partnerships. The Company recognizes performance fee income when such fees are no longer subject to forfeiture, which may take a number of years to resolve. This income is based on the investment performance over the life of each investment in the private equity fund, and future declines in the fund performance from current levels may result in forfeiture of such revenue. Since Trident II fully harvested all its portfolio investments and made final distributions to its partners in 2013, the Company no longer holds any rights to Trident II performance fees. In 2015, the Company recorded investment income of $38 million compared to $37 million in 2014 and $69 million in 2013. The Company recorded investment income related to its general partner carried interest from Trident III no longer subject to clawback of $29 million, $31 million and $41 million in 2015, 2014 and 2013, respectively. In 2013, the Company recorded $15 million of general partner carried interest from Trident II. Stonepoint Capital, the investment manager of Trident III, harvested its remaining two investments in Trident III in the third quarter of 2015, which resulted in the Company recognizing its remaining deferred performance fees. Goodwill and Other Intangible Assets: Goodwill represents acquisition costs in excess of the fair value of net assets acquired. Goodwill is reviewed at least annually for impairment. The Company performs an annual impairment test for each of its reporting units during the third quarter of each year. When a step 1 test is performed, fair values of the reporting units are estimated using either a market approach or a discounted cash flow model. Carrying values for the reporting units are based on balances at the prior quarter end and include directly identified assets and liabilities as well as an allocation of those assets and liabilities not recorded at the reporting unit level. As discussed in Note 6, the Company may elect to assess qualitative factors to determine if a step 1 test is necessary. Other intangible assets, which primarily consist of customer lists that are not deemed to have an indefinite life, are amortized over their estimated lives, typically ranging from 10 to 15 years, and reviewed for impairment upon the occurrence of certain triggering events in accordance with applicable accounting literature. The Company had no indefinite lived identified intangible assets at December 31, 2015 and 2014. Capitalized Software Costs: The Company capitalizes certain costs to develop, purchase or modify software for the internal use of the Company. These costs are amortized on a straight-line basis over periods ranging from 3 to 10 years. Costs incurred during the preliminary project stage and post implementation stage, are expensed as incurred. Costs incurred during the application development stage are capitalized. Costs related to updates and enhancements are only capitalized if they will result in additional functionality. Capitalized computer software costs of $498 million and $501 million, net of accumulated amortization of $958 million and $837 million at December 31, 2015 and 2014, respectively, are included in other assets in the consolidated balance sheets. Legal and Other Loss Contingencies: The Company and its subsidiaries are subject to a significant number of claims, lawsuits and proceedings including claims for errors and omissions ("E&O"). The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires that a liability be recorded when a loss is both probable and reasonably estimable. Significant management judgment is required to apply this guidance. The Company utilizes case level reviews by inside and outside counsel, an internal actuarial analysis and other analysis to estimate potential losses. The liability is reviewed quarterly and adjusted as developments warrant. In many cases, the Company has not recorded a liability, other than for legal fees to defend the claim, because we are unable, at the present time, to make a determination that a loss is both probable and reasonably estimable. Given the unpredictability of E&O claims and of litigation that could flow from them, it is possible that an adverse outcome in a particular matter could have a material adverse effect on the Company’s businesses, results of operations, financial condition or cash flow in a given quarterly or annual period. In addition, to the extent that insurance coverage is available, significant management judgment is required to determine the amount of recoveries that are probable of collection under the Company’s various insurance programs. The legal and other contingent liabilities described above are not discounted. Income Taxes: The Company's effective tax rate reflects its income, statutory tax rates and tax planning in the various jurisdictions in which it operates. Significant judgment is required in determining the annual effective tax rate and in evaluating uncertain tax positions and the ability to realize deferred tax assets. The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The evaluation of a tax position is a two-step process. The first step involves recognition. The Company determines whether it is more likely than not that a tax position will be sustained upon tax examination, including resolution of any related appeals or litigation, based on only the technical merits of the position. The technical merits of a tax position derive from both statutory and judicial authority (legislation and statutes, legislative intent, regulations, rulings, and case law) and their applicability to the facts and circumstances of the tax position. If a tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate resolution with a taxing authority. Uncertain tax positions are evaluated based upon the facts and circumstances that exist at each reporting period. Subsequent changes in judgment based upon new information may lead to changes in recognition, de-recognition, and measurement. Adjustments may result, for example, upon resolution of an issue with the taxing authorities, or expiration of a statute of limitations barring an assessment for an issue. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Tax law requires items to be included in the Company's tax returns at different times than the items are reflected in the financial statements. As a result, the annual tax expense reflected in the consolidated statements of income is different than that reported in the income tax returns. Some of these differences are permanent, such as expenses that are not deductible in the returns, and some differences are temporary and reverse over time, such as depreciation expense. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in tax returns in future years for which benefit has already been recorded in the financial statements. Valuation allowances are established for deferred tax assets when it is estimated that future taxable income will be insufficient to use a deduction or credit in that jurisdiction. Deferred tax liabilities generally represent tax expense recognized in the financial statements for which payment has been deferred, or expense for which a deduction has been taken already in the tax return but the expense has not yet been recognized in the financial statements. Derivative Instruments: All derivatives, whether designated in hedging relationships or not, are recorded on the balance sheet at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. The fair value of the derivative is recorded in the consolidated balance sheet in other receivables or accounts payable and accrued liabilities. The change in the fair value of a derivative is recorded in the consolidated statement of income in other operating expenses. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income and are recognized in the income statement when the hedged item affects earnings. Changes in the fair value attributable to the ineffective portion of cash flow hedges are recognized in earnings. Concentrations of Credit Risk: Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, commissions and fees receivable and insurance recoverable. The Company maintains a policy providing for the diversification of cash and cash equivalent investments and places its investments in a large number of high quality financial institutions to limit the amount of credit risk exposure. Concentrations of credit risk with respect to receivables are generally limited due to the large number of clients and markets in which the Company does business, as well as the dispersion across many geographic areas. Per Share Data: Basic net income per share attributable to the Company and income from continuing operations per share are calculated by dividing the respective after-tax income attributable to common shares by the weighted average number of outstanding shares of the Company’s common stock. Diluted net income per share attributable to the Company and income from continuing operations per share are calculated by dividing the respective after-tax income attributable to common shares by the weighted average number of outstanding shares of the Company’s common stock, which have been adjusted for the dilutive effect of potentially issuable common shares. Reconciliations of the applicable income components used for diluted EPS - Continuing Operations and basic weighted average common shares outstanding to diluted weighted average common shares outstanding are presented below. The reconciling items related to the calculation of diluted weighted average common shares outstanding are the same for net income attributable to the Company.
There were 14.8 million, 18.0 million and 22.6 million stock options outstanding as of December 31, 2015, 2014 and 2013, respectively. Estimates: GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may vary from those estimates. New Accounting Pronouncements: In September 2015, the Financial Accounting Standards Board (the "FASB") issued new guidance intended to simplify the accounting for adjustments made to provisional amounts recognized in business combinations. The guidance requires the acquirer to recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustments are determined, and to record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed as of the acquisition date. The guidance also includes additional disclosures required for the amounts recorded in current period earnings arising from such adjustments. The guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The guidance should be applied prospectively for adjustments to provisional amounts after the effective date, with earlier application permitted for financial statements that have not been issued. The adoption of this new guidance is not expected to have a material impact on the Company's financial statements. In May 2015, the FASB issued new guidance which removes the requirement to present certain investments for which the practical expedient is used to measure fair value at net asset value within the fair value hierarchy table. Instead, an entity would be required to include those investments as a reconciling item so that the total fair value amount of investments in the disclosure is consistent with the fair value investment balance on the statement of net assets. This guidance is effective for fiscal years beginning after December 15, 2015. The adoption of this new guidance will affect footnote disclosure and is not expected to have a material impact on the Company's financial statements. In February 2015, the FASB issued new accounting guidance intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations and securitization structures. The guidance focuses on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The guidance is effective for periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a material impact on the Company's financial statements. In January 2015, the FASB issued new accounting guidance that eliminated the concept of extraordinary items. The guidance is effective for annual periods beginning after December 15, 2015. The guidance may be adopted prospectively, or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided the guidance is applied from the beginning of the fiscal year of adoption. Adoption of the guidance is not expected to materially affect the Company's financial condition, results of operations or cash flows. In June 2014, the FASB issued new accounting guidance to clarify the treatment of share-based payment awards that require a specific performance target to be achieved in order for employees to be eligible to vest in the awards which include terms that may provide that the performance conditions could be achieved after an employee completes the requisite service period. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, a reporting entity should apply the existing guidance as it relates to awards with performance conditions that affect vesting. The guidance is effective for annual periods beginning after December 15, 2015. Earlier adoption is permitted. Adoption of the guidance is not expected to materially affect the Company's financial condition, results of operations or cash flows. In May 2014, the FASB issued new accounting guidance to clarify the principles for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of 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. To achieve that principle, the entity should apply the following steps: identify the contract(s) with the customer, identify the performance obligations in the contract(s), determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. Entities are permitted to adopt the guidance under one of the following methods: retrospectively to each prior reporting period presented (with certain practical expedients allowed) or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. If an entity elects this transition method, it must provide disclosures in reporting periods that include the date of initial application of the amount by which each financial statement line item is affected in the current reporting period by application of the guidance as compared to guidance that was in effect before the change, and an explanation for the reasons for significant changes. The Company is currently evaluating the impact of the adoption of the guidance on its financial condition and results of operations. New Accounting Pronouncements Recently Adopted In November 2015, the FASB issued a new standard related to the balance sheet classification of deferred taxes ("deferred tax standard"), which simplifies the presentation of deferred income taxes. The deferred tax standard requires companies to classify deferred tax assets and liabilities as noncurrent in the consolidated balance sheet. The previous standard required companies to classify deferred tax assets and liabilities as current and noncurrent. The deferred tax standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted for any interim and annual financial statements that have not yet been issued. Effective December 31, 2015, the Company early adopted the deferred tax standard retrospectively, as a change in accounting principle. The impact of this change on the Company's prior years Consolidated Balance Sheets and Consolidated Statements of Cash Flows is shown in the table below. The adoption of this standard had no impact on our results of operations. In April 2015, the FASB issued a new standard related to the presentation of debt issuance costs ("debt issuance costs standard"). The debt issuance cost standard requires debt issuance costs related to recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The previous standard required these debt issuance costs be classified as an asset and amortized ratably over the life of the debt. The debt issuance cost standard is effective for fiscal years beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted for any interim and annual financial statements that have not yet been issued. The Company has elected to early adopt the debt issuance costs standard, effective December 31, 2015. The adoption of the debt issuance costs standard had no impact on our results of operations. This guidance is effective on a retrospective basis, as a change in accounting principle. The impact of this change on the Company's prior years Consolidated Balance Sheets and Consolidated Statements of Cash Flows is shown in the table below.
In April 2014, the FASB issued new accounting guidance which changes the criteria for reporting discontinued operations and enhances disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations, such as disposal of a major geographic area or a major line of business, should be presented as discontinued operations. Those strategic shifts should have a major impact on the organization's operations and financial results. In addition, the new guidance requires expanded disclosures about discontinued operations. The guidance is effective for fiscal years beginning on or after December 15, 2014. Adoption of the guidance did not have a material affect on the Company's financial condition, results of operations or cash flows. Reclassifications In addition to the above changes, reclassifications have been made to prior period amounts to conform with current year separate presentation of goodwill and other intangible assets in the consolidated balance sheets. |
Supplemental Disclosures |
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Supplemental Disclosures | Supplemental Disclosures The following schedule provides additional information concerning acquisitions, interest and income taxes paid:
The Company paid deferred purchase consideration related to prior years' acquisitions of $36 million, $25 million and $15 million for the years ended December 31, 2015, 2014 and 2013, respectively. The Company had non-cash issuances of common stock under its share-based payment plan of $72 million, $108 million and $150 million for the years ended December 31, 2015, 2014 and 2013, respectively. The Company recorded stock-based compensation expense related to equity awards of $67 million, $75 million and $110 million for the years ended December 31, 2015, 2014 and 2013, respectively. The consolidated statement of cash flows includes the cash flow impact of discontinued operations related to indemnification payments from the Putnam disposition that reduced the net cash flow provided by operations by $82 million in 2015. An analysis of the allowance for doubtful accounts is as follows:
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Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The changes in the balances of each component of Accumulated Other Comprehensive Income ("AOCI") for the years ended December 31, 2015 and 2014, including amounts reclassified out of AOCI, are as follows:
The components of other comprehensive income (loss) are as follows:
(a) Components of net periodic pension cost are included in compensation and benefits in the Consolidated Statements of Income. Tax on prior service gains and net actuarial losses is included in income tax expense.
(a) Components of net periodic pension cost are included in compensation and benefits in the Consolidated Statements of Income. Tax on prior service gains and net actuarial losses is included in income tax expense.
(a) Components of net periodic pension cost are included in compensation and benefits in the Consolidated Statements of Income. Tax on prior service gains and net actuarial losses is included in income tax expense. The components of accumulated other comprehensive income (loss) are as follows:
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Acquisitions / Dispositions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions / Dispositions | Acquisitions / Dispositions The Company’s acquisitions have been accounted for as business combinations. Net assets and results of operations are included in the Company’s consolidated financial statements commencing at the respective purchase closing dates. In connection with acquisitions, the Company records the estimated value of the net tangible assets purchased and the value of the identifiable intangible assets purchased, which typically consist of purchased customer lists, trademarks and non-compete agreements. The valuation of purchased intangible assets involves significant estimates and assumptions. Any change in assumptions could affect the carrying value of such intangible assets. The Risk and Insurance Services segment completed thirteen acquisitions during 2015.
The Consulting segment completed eight acquisitions during 2015.
Total purchase consideration for acquisitions made during 2015 was approximately $1.2 billion, which consisted of cash paid of $1.0 billion and deferred purchase and estimated contingent consideration of $176 million. Contingent consideration arrangements are based primarily on EBITDA and revenue targets over periods of two to four years. The fair value of the contingent consideration was based on projected revenue and earnings of the acquired entities. Estimated fair values of assets acquired and liabilities assumed are subject to adjustment when purchase accounting is finalized. During 2015, the Company also paid $36 million of deferred purchase consideration and $47 million of contingent consideration related to acquisitions made in prior years. In addition, the Company purchased other intangible assets in the amount of $2 million. The following table presents the preliminary allocation of the acquisition cost to the assets acquired and liabilities assumed, based on their fair values:
Other intangible assets acquired are based on initial estimates and subject to change based on final valuations during the measurement period post acquisition date. The following chart provides information of other intangible assets acquired during 2015:
(a) Primarily non-compete agreements, trade names and developed technology Prior Year Acquisitions During 2014, the Risk and Insurance Services segment completed the following fifteen acquisitions:
During 2014, the Consulting segment completed the following six acquisitions:
Total purchase consideration for acquisitions made during 2014 was $772 million, which consisted of cash paid of $575 million and deferred purchase and estimated contingent consideration of $197 million. Contingent consideration arrangements are primarily based on EBITDA and revenue targets over two to four years. The fair value of the contingent consideration was based on projected revenue and earnings of the acquired entities. Estimated fair values of assets acquired and liabilities assumed are subject to adjustment when purchase accounting is finalized. During 2014, the Company also paid $25 million of deferred purchase consideration and $42 million of contingent consideration related to acquisitions made in prior years. Pro-Forma Information While the Company does not believe its acquisitions in the aggregate are material, the following unaudited pro-forma financial data gives effect to the acquisitions made by the Company during 2015 and 2014. In accordance with accounting guidance related to pro-forma disclosures, the information presented for current year acquisitions is as if they occurred on January 1, 2014 and reflects acquisitions made in 2014 as if they occurred on January 1, 2013. The pro-forma information adjusts for the effects of amortization of acquired intangibles. The unaudited pro-forma financial data is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved if such acquisitions had occurred on the dates indicated, nor is it necessarily indicative of future consolidated results.
The consolidated statement of income for 2015 includes approximately $124 million of revenue and $7 million of operating income related to acquisitions made during 2015. Dispositions In December 2015, Mercer sold its U.S. defined contribution recordkeeping business, recognizing a pre-tax gain of $37 million, which is included in revenue in the consolidated statements of income. The sale agreement includes contingent consideration based on retention and renewal of the client contracts by the acquirer. Additional consideration, if any, will be recognized when all conditions precedent to its receipt have been satisfied. |
Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations As part of the disposal transactions for Putnam and Kroll, the Company provided certain indemnities, primarily related to pre-transaction tax uncertainties and legal contingencies. In accordance with applicable accounting guidance, liabilities were established related to these indemnities at the time of the sales and reflected as a reduction of the gain on disposal. Discontinued operations includes charges or credits resulting from the settlement or resolution of the indemnified matters, as well as adjustments to the liabilities related to such matters. On December 31, 2014, an agreement was reached between Putnam and the Massachusetts Department of Revenue ("DOR") regarding a tax dispute, which was covered under the indemnity agreement discussed above. The December 2014 agreement was subject to certain approvals, which included the State Attorney General and the Commissioner of the DOR. In January 2015, all necessary approvals were received, the agreement was executed and the tax was paid. Concurrently, Putnam and the Company executed a settlement agreement to resolve all remaining matters under the indemnity agreement. The Company recorded a gain, net of federal income taxes, of approximately $28 million in 2014 related to the settlement with Putnam. Discontinued operations in 2013 includes estimated costs covered under the indemnity related to the Kroll sale as well as tax indemnities related to the Putnam sale. Summarized Statements of Income data for discontinued operations is as follows:
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Goodwill And Other Intangibles |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Other Intangibles | Goodwill and Other Intangibles The Company is required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate impairment may have occurred. The Company performs the annual impairment assessment for each of its reporting units during the third quarter of each year. In accordance with applicable accounting guidance, the Company assesses qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test. The Company considered numerous factors, which included that the fair value of each reporting unit exceeded its carrying value by a substantial margin in its most recent estimate of reporting unit fair values, whether significant acquisitions or dispositions occurred which might alter the fair value of its reporting units, macroeconomic conditions and their potential impact on reporting unit fair values, actual performance compared with budget and prior projections used in its estimation of reporting unit fair values, industry and market conditions, and the year-over-year change in the Company’s share price. The Company completed its qualitative assessment in the third quarter of 2015 and concluded that a two-step goodwill impairment test was not required in 2015 and that goodwill was not impaired. Other intangible assets that are not deemed to have an indefinite life are amortized over their estimated lives and reviewed for impairment upon the occurrence of certain triggering events in accordance with applicable accounting literature. Changes in the carrying amount of goodwill are as follows:
The goodwill acquired of $783 million in 2015 (approximately $387 million of which is deductible for tax purposes) is comprised of $639 million related to the Risk and Insurance Services segment and $144 million related to the Consulting segment. Goodwill allocable to the Company’s reportable segments is as follows: Risk and Insurance Services, $5.6 billion and Consulting, $2.3 billion. The gross cost and accumulated amortization at December 31, 2015 and 2014 are as follows:
(a) Primarily non-compete agreements, trade names and developed technology Aggregate amortization expense was $109 million for the year ended December 31, 2015, $86 million for the year ended December 31, 2014 and $72 million for the year ended December 31, 2013. The estimated future aggregate amortization expense is as follows:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes For financial reporting purposes, income before income taxes includes the following components:
The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows:
U.S. Federal income taxes are not provided on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration, which at December 31, 2015, the Company estimates, amounted to approximately $3.4 billion. The determination of the unrecognized deferred tax liability with respect to these investments is not practicable. A reconciliation from the U.S. Federal statutory income tax rate to the Company’s effective income tax rate is shown below:
The Company’s consolidated tax rate was 29.1%, 28.5% and 30.1% in 2015, 2014 and 2013, respectively. The tax rate in each year reflects foreign operations, which are generally taxed at rates lower than the U.S. statutory tax rate. Valuation allowances had a net decrease of $69 million in 2015, and net increases of $15 million and $10 million in 2014 and 2013, respectively. During the respective years, adjustments of the beginning of the year balances of valuation allowances decreased income tax expense by $14 million, $9 million and $3 million in 2015, 2014 and 2013, respectively. The decrease in the valuation allowance in 2015 also reflects the write down of a deferred tax asset along with its full valuation allowance because the Company cannot utilize a net operating loss. Approximately 80% of the Company’s net operating loss carryforwards expire from 2016 through 2035, and others are unlimited. The potential tax benefit from net operating loss carryforwards at the end of 2015 comprised federal, state and local, and non-U.S. tax benefits of $10 million, $55 million and $36 million, respectively, before reduction for valuation allowances. Foreign tax credit carryforwards expire in 2021 and 2022. The realization of deferred tax assets depends on generating future taxable income during the periods in which the tax benefits are deductible or creditable. Tax liabilities are determined and assessed jurisdictionally by legal entity or filing group. Certain taxing jurisdictions allow or require combined or consolidated tax filings. The Company assessed the realizability of its deferred tax assets and considered all available evidence, including the existence of a recent history of losses, placing particular weight on evidence that could be objectively verified. A valuation allowance was recorded to reduce deferred tax assets to the amount that the Company believes is more likely than not to be realized. Following is a reconciliation of the Company’s total gross unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013:
Of the total unrecognized tax benefits at December 31, 2015, 2014 and 2013, $53 million, $51 million and $71 million, respectively, represent the amount that, if recognized, would favorably affect the effective tax rate in any future periods. The total gross amount of accrued interest and penalties at December 31, 2015, 2014 and 2013, before any applicable federal benefit, was $8 million, $7 million and $10 million, respectively. As discussed in Note 5, the Company has provided certain indemnities related to contingent tax liabilities as part of the disposals of Putnam and Kroll. At December 31, 2015, 2014 and 2013, $1 million, $2 million and $2 million, respectively, included in the table above, relates to Putnam and Kroll positions included in consolidated Company tax returns. Since the Company remains primarily liable to the taxing authorities for resolution of uncertain tax positions related to consolidated returns, these balances will remain as part of the Company’s consolidated liability for uncertain tax positions. Any future charges or credits related to these matters, including interest accrued, will be recorded in discontinued operations as incurred. The Company is routinely examined by the jurisdictions in which it has significant operations. In the U.S. federal jurisdiction the Company participates in the Internal Revenue Service’s (IRS) Compliance Assurance Process (CAP), which is structured to conduct real-time compliance reviews. The IRS is currently examining the Company’s 2014 tax return and performing a pre-filing review of 2015. During 2015 the Company settled its federal tax audit with the IRS for the year 2013. In 2014, the Company settled its federal tax audit for the year 2012, and in 2013 settled the years 2007, and 2009 through 2011. The tax year 2008 was settled in a prior period. New York State and New York City have examinations underway for various entities covering the years 2007 through 2014. During 2015, Illinois completed its audit of years 2009 through 2010. Outside the United States, during calendar year 2015 examinations commenced in Germany for the years 2009 through 2012. There are ongoing examinations of certain subsidiaries in France for years 2011 to 2014, in Canada for years 2012 and 2013 and in the United Kingdom for years 2011 and 2012, as well as in other smaller jurisdictions. The Company regularly considers the likelihood of assessments in each of the taxing jurisdictions resulting from examinations. The Company has established liabilities for uncertain tax positions in relation to the potential assessments. The Company believes the resolution of tax matters will not have a material effect on the consolidated financial position of the Company, although a resolution of tax matters could have a material impact on the Company's net income or cash flows and on its effective tax rate in a particular future period. It is reasonably possible that the total amount of unrecognized tax benefits will decrease between zero and approximately $8 million within the next twelve months due to the settlement of audits and the expiration of statutes of limitation. |
Retirement Benefits |
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Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits | Retirement Benefits The Company maintains qualified and non-qualified defined benefit pension plans for its U.S. and non-U.S. eligible employees. The Company’s policy for funding its tax qualified defined benefit retirement plans is to contribute amounts at least sufficient to meet the funding requirements set forth by U.S. law and the laws of the non-U.S. jurisdictions in which the Company offers defined benefit plans. Combined U.S. and non-U.S. Plans The weighted average actuarial assumptions utilized for the U.S. and significant non-U.S. defined benefit plans and postretirement benefit plans are as follows:
The Company uses actuaries from Mercer, a subsidiary of the Company, to perform valuations of its pension plans. The long-term rate of return on plan assets assumption is determined for each plan based on the facts and circumstances that exist as of the measurement date, and the specific portfolio mix of each plan’s assets. The Company utilizes a model developed by the Mercer actuaries to assist in the determination of this assumption. The model takes into account several factors, including: actual and target portfolio allocation; investment, administrative and trading expenses incurred directly by the plan trust; historical portfolio performance; relevant forward-looking economic analysis; and expected returns, variances and correlations for different asset classes. These measures are used to determine probabilities using standard statistical techniques to calculate a range of expected returns on the portfolio. The Company generally does not adjust the rate of return assumption from year to year if, at the measurement date, it is within the range between the 25th and 75th percentile of the expected long-term annual returns. Historical long-term average asset returns of each plan are also reviewed to determine whether they are consistent and reasonable compared with the rate selected. The expected return on plan assets is determined by applying the assumed long-term rate of return to the market-related value of plan assets. This market-related value recognizes investment gains or losses over a five-year period from the year in which they occur. Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return based on the market value of assets. Since the market-related value of assets recognizes gains or losses over a five-year period, the future market-related value of the assets will be impacted as previously deferred gains or losses are reflected. The target asset allocation for the U.S. Plans is 64% equities and equity alternatives and 36% fixed income. At the end of 2015, the actual allocation for the U.S. Plans was 63% equities and equity alternatives and 37% fixed income. The target asset allocation for the U.K. Plans, which comprise approximately 83% of non-U.S. Plan assets, is 48% equities and equity alternatives and 52% fixed income. At the end of 2015, the actual allocation for the U.K. Plans was 47% equities and equity alternatives and 53% fixed income. The assets of the Company's defined benefit plans are diversified and are managed in accordance with applicable laws and with the goal of maximizing the plans' real return within acceptable risk parameters. The Company uses threshold-based portfolio re-balancing to ensure the actual portfolio remains consistent with target asset allocation ranges. The discount rate selected for each U.S. plan is based on a model bond portfolio with coupons and redemptions that closely match the expected liability cash flows from the plan. Discount rates for non-U.S. plans are based on appropriate bond indices adjusted for duration; in the U.K., the plan duration is reflected using the Mercer yield curve. The components of the net periodic benefit cost for defined benefit and other postretirement plans are as follows:
Plan Assets For the U.S. Plans, investment allocation decisions are made by a fiduciary committee composed of senior executives appointed by the Company’s Chief Executive Officer. For the non-U.S. plans, investment allocation decisions are made by local fiduciaries, in consultation with the Company for the larger plans. Plan assets are invested in a manner consistent with the fiduciary standards set forth in all relevant laws relating to pensions and trusts in each country. Primary investment objectives are (1) to achieve an investment return that, in combination with current and future contributions, will provide sufficient funds to pay benefits as they become due, and (2) to minimize the risk of large losses. The investment allocations are designed to meet these objectives by broadly diversifying plan assets among numerous asset classes with differing expected returns, volatilities, and correlations. The major categories of plan assets include equity securities, equity alternative investments, and fixed income securities. For the U.S. qualified plans, the category ranges are 59-69% for equities and equity alternatives, and 31-41% for fixed income. For the U.K. Plan, the category ranges are 45-51% for equities and equity alternatives, and 49-55% for fixed income. Asset allocation is monitored frequently and re-balancing actions are taken as appropriate. Re-balancing in the U.K. Plan was suspended in 2014 while a contingent guarantee agreement was put in place and the investment strategy of the plan was finalized. After the contingent guarantee agreement was executed in January 2015, re-balancing resumed in February 2015 with target asset allocation of 48% equities and equity alternatives and 52% fixed income. Plan investments are exposed to stock market, interest rate, and credit risk. Concentrations of these risks are generally limited due to diversification by investment style within each asset class, diversification by investment manager, diversification by industry sectors and issuers, and the dispersion of investments across many geographic areas. Unrecognized Actuarial Gains/Losses In accordance with applicable accounting guidance, the funded status of the Company's pension plans is recorded in the consolidated balance sheets and provides for a delayed recognition of actuarial gains or losses arising from changes in the projected benefit obligation due to changes in the assumed discount rates, differences between the actual and expected value of plan assets and other assumption changes. The unrecognized pension plan actuarial gains or losses and prior service costs not yet recognized in net periodic pension cost are recognized in Accumulated Other Comprehensive Income ("AOCI"), net of tax. These gains and losses are amortized prospectively out of AOCI over a period that approximates the average remaining service period of active employees, or for plans in which substantially all the participants are inactive, over the remaining life expectancy of the inactive employees. Interest and Service Cost In 2016, the Company changed the approach used to estimate the service and interest cost components of net periodic benefit cost for its significant non-U.S. plans. Historically, service and interest costs were estimated using a single weighted average discount rate derived from the yield curves used to measure the benefit obligations at the beginning of the period. This change in approach was made to improve the correlation between the projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of service and interest costs. The change does not impact the measurement of the plans’ total Projected Benefit Obligation. The Company has accounted for this change as a change in estimate, that will be applied prospectively beginning in 2016. As a result of this change, service and interest cost in 2016 are expected to be approximately $45 million lower than if the prior methodology were used in 2016. U.S. Plans The following schedules provide information concerning the Company’s U.S. defined benefit pension plans and postretirement benefit plans:
Estimated amounts that will be amortized from accumulated other comprehensive loss in the next fiscal year:
The weighted average actuarial assumptions utilized in determining the above amounts for the U.S. defined benefit and other U.S. postretirement plans as of the end of the year are as follows:
In 2014, the Society of Actuaries in the United States issued a new mortality table (RP-2014) and an updated improvement scale. The Company considered the effect of RP-2014, along with other available information on mortality improvement and industry specific mortality studies, to select its assumptions for measurement of the plans’ benefit obligations at December 31, 2014 and 2015. The projected benefit obligation, accumulated benefit obligation and aggregate fair value of plan assets for U.S. pension plans with accumulated benefit obligations in excess of plan assets were $5.7 billion, $5.6 billion and $4.2 billion, respectively, as of December 31, 2015 and $5.9 billion, $5.8 billion and $4.5 billion, respectively, as of December 31, 2014. The projected benefit obligation and fair value of plans assets for U.S. pension plans with projected benefit obligations in excess of plan assets was $5.7 billion and $4.2 billion, respectively, as of December 31, 2015 and $5.9 billion and $4.5 billion, respectively, as of December 31, 2014. As of December 31, 2015, the U.S. qualified plans hold 4 million shares of the Company’s common stock which were contributed to the Plan by the Company in 2005. This represented approximately 5.3% of those plans' assets as of December 31, 2015. In addition, plan assets may be invested in funds managed by Mercer Investments, a subsidiary of the Company. The components of the net periodic benefit cost for the U.S. defined benefit and other postretirement benefit plans are as follows:
Effective September 1, 2015, the Company divided its U.S. qualified defined benefit plan to provide enhanced flexibility and better manage the risks. The existing plan was amended to cover only the retirees currently receiving benefits and terminated vested participants as of August 1, 2015. The Company's active participants as of that date were transferred into a newly established, legally separate qualified defined benefit plan. The benefits offered to the plans’ participants were unchanged. As a result of the plan amendment and establishment of the new plan, the Company re-measured the assets and liabilities of the two plans as required under U.S. GAAP, based on assumptions and market conditions at the amendment date. The net periodic pension expense recognized in 2015 reflects the weighted average costs of the December 31, 2014 measurement and the September 1, 2015 re-measurement. In March 2015, the Company amended its U.S. Post-65 retiree medical reimbursement plan (the "RRA plan"), resulting in its termination, with benefits to certain participants paid through December 31, 2016. As a result of the termination of the RRA plan, the Company recognized a net credit of approximately $125 million in the first quarter of 2015. In December 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 became law. The net periodic benefit cost for all periods shown above includes the related subsidy. The assumed health care cost trend rate for Medicare eligibles and non-Medicare eligibles is approximately 7.3% in 2015, gradually declining to 4.5% in 2029. Assumed health care cost trend rates have a small effect on the amounts reported for the U.S. health care plans because the Company caps its share of health care trend at 5%. A one percentage point change in assumed health care cost trend rates would have no effect on the total service and interest cost components or the postretirement benefit obligation. Estimated Future Contributions The Company expects to fund approximately $26 million for its U.S. non-qualified plans in 2016. The Company’s policy for funding its tax-qualified defined benefit retirement plans is to contribute amounts at least sufficient to meet the funding requirements set forth in the U.S. and applicable foreign law. There is currently no ERISA funding requirement for the U.S. qualified plans for 2016. Non-U.S. Plans The following schedules provide information concerning the Company’s non-U.S. defined benefit pension plans and non-U.S. postretirement benefit plans:
Estimated amounts that will be amortized from accumulated other comprehensive income in the next fiscal year:
The weighted average actuarial assumptions utilized for the non-U.S. defined and postretirement benefit plans as of the end of the year are as follows:
The non-U.S. defined benefit plans do not have any direct ownership of the Company’s common stock. The pension plan in the United Kingdom no longer holds an interest in the Trident III private equity fund, since the fund fully harvested all its portfolio investments and made final distributions to its partners in 2015. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the non-U.S. pension plans with accumulated benefit obligations in excess of plan assets were $1.7 billion, $1.6 billion and $1.3 billion, respectively, as of December 31, 2015 and $2.1 billion, $2.0 billion and $1.6 billion, respectively, as of December 31, 2014. The projected benefit obligation and fair value of plan assets for non-U.S. pension plans with projected benefit obligations in excess of plan assets was $1.9 billion and $1.5 billion, respectively, as of December 31, 2015 and $2.2 billion and $1.6 billion, respectively, as of December 31, 2014. Non-U.S. Plan Amendments Effective August 1, 2015, the Company amended its Ireland defined benefit pension plans to close those plans to future benefit accruals and replaced those plans with a defined contribution arrangement. The Company re-measured the assets and liabilities of the plans, based on assumptions and market conditions on the amendment date. The net periodic pension costs recognized in 2015 reflects the weighted average costs of the December 31, 2014 measurement and the August 1, 2015 re-measurement. After completion of a consultation period with affected colleagues, in January 2014, the Company amended its U.K. defined benefit pension plans to close those plans to future benefit accruals effective August 1, 2014 and replaced those plans, along with its existing defined contribution plans, with a new, comprehensive defined contribution arrangement. This change resulted in a curtailment of the U.K. defined benefit plans and, as required under GAAP, the Company re-measured the defined benefit plans’ assets and liabilities at the amendment date, based on assumptions and market conditions at that date. The net periodic benefit costs recognized in 2014 are the weighted average resulting from the December 31, 2013 measurement and the January 2014 re-measurement. The Company recognized a curtailment gain of $65 million in the first quarter of 2014, primarily resulting from the recognition of the remaining unamortized prior service credit related to a plan amendment made in December 2012. This gain was mostly offset by the cost of a transition benefit for certain employees most impacted by the amendment, which is not part of net periodic pension cost. Components of Net Periodic Benefits Costs The components of the net periodic benefit cost for the non-U.S. defined benefit and other postretirement benefit plans and the curtailment, settlement and termination expenses are as follows:
The assumed health care cost trend rate was approximately 5.30% in 2015, gradually declining to 4.53% in 2026. Assumed health care cost trend rates can have a significant effect on the amounts reported for the non-U.S. health care plans. A one percentage point change in assumed health care cost trend rates would have the following effects:
Estimated Future Contributions The Company expects to fund approximately $191 million to its non-U.S. pension plans in 2016. Funding requirements for non-U.S. plans vary by country. Contribution rates are generally based on local funding practices and requirements, which may differ significantly from measurements under U.S. GAAP. 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. Discretionary contributions may also be affected by alternative uses of the Company’s cash flows, including dividends, investments and share repurchases. In the U.K., contributions to defined benefit pension plans are determined through a negotiation process between the Company and the plans' Trustee that typically occurs every three years in conjunction with the actuarial valuation of the plans. This process is governed by U.K. pension regulations. The assumptions that result from the funding negotiations are different from those used for U.S. GAAP and currently result in a lower funded status than under U.S. GAAP. In March 2014, the Company and the Trustee of the U.K. Defined Benefits Plans agreed to a funding deficit recovery plan for the U.K. defined benefit pension plans. The current agreement with the Trustee sets out the annual deficit contributions which would be due based on the deficit at December 31, 2012. The funding level is subject to re-assessment, in most cases on November 1st of each year. If the funding level on November 1st has sufficiently improved, no deficit funding contributions will be required in the following year, and the contribution amount will be deferred. As part of a long-term strategy, which depends on having greater influence over asset allocation and overall investment decisions, the Company has agreed to support annual deficit contributions by the U.K. operating companies under certain circumstances, up to GBP 450 million over a seven-year period. Estimated Future Benefit Payments The Plans' estimated future benefit payments for its pension and postretirement benefits (without reduction for Medicare subsidy receipts) are as follows:
Defined Benefit Plans Fair Value Disclosures In December 2008, the FASB issued guidance for Employers’ Disclosures About Pension and Other Post Retirement Benefit Plan Assets. The guidance requires fair value plan asset disclosures for an employer’s defined benefit pension and postretirement plans similar to the guidance on Fair Value Measurements as well as (a) how investment allocation decisions are made, (b) the major categories of plan assets, and (c) significant concentrations of risk within plan assets. The U.S. and non-U.S. plan investments are classified into Level 1, which refers to investments valued using quoted prices from active markets for identical assets; Level 2, which refers to investments not traded on an active market but for which observable market inputs are readily available; and Level 3, which refers to investments valued based on significant unobservable inputs. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth, by level within the fair value hierarchy, a summary of the U.S. and non-U.S. plans' investments measured at fair value on a recurring basis at December 31, 2015 and 2014:
The tables below set forth a summary of changes in the fair value of the plans’ Level 3 assets for the years ended December 31, 2015 and December 31, 2014:
The following is a description of the valuation methodologies used for assets measured at fair value: Company common stock: Valued at the closing price reported on the New York Stock Exchange. Common stocks, preferred stocks, convertible equity securities and rights/warrants (included in Corporate stocks): Valued at the closing price reported on the primary exchange. Corporate bonds (included in Corporate obligations): The fair value of corporate bonds is estimated using recently executed transactions, market price quotations (where observable) and bond spreads. The spread data used are for the same maturity as the bond. If the spread data does not reference the issuer, then data that references a comparable issuer are used. When observable price quotations are not available, fair value is determined based on cash flow models. Commercial mortgage-backed and asset-backed securities (included in Corporate obligations): Fair value is determined using discounted cash flow models. Observable inputs are based on trade and quote activity of bonds with similar features including issuer vintage, purpose of underlying loan (first or second lien), prepayment speeds and credit ratings. The discount rate is the combination of the appropriate rate from the benchmark yield curve and the discount margin based on quoted prices. Common/Collective trusts: Valued at the net asset value of units of a bank collective trust. The net asset value as provided by the trustee, is used as a practical expedient to estimate fair value. The net asset value is based on the fair value of the underlying investments held by the fund less its liabilities. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported net asset value. U.S. government bonds (included in Government securities): The fair value of U.S. government bonds is estimated by pricing models that utilize observable market data including quotes, spreads and data points for yield curves. U.S. agency securities (included in Government securities): U.S. agency securities are comprised of two main categories consisting of agency issued debt and mortgage pass-throughs. Agency issued debt securities are valued by benchmarking market-derived prices to quoted market prices and trade data for identical or comparable securities. Mortgage pass-throughs include certain "To-be-announced" (TBA) securities and mortgage pass-through pools. TBA securities are generally valued using quoted market prices or are benchmarked thereto. Fair value of mortgage pass-through pools are model driven with respect to spreads of the comparable TBA security. Private equity and real estate partnerships: Investments in private equity and real estate partnerships are valued based on the fair value reported by the manager of the corresponding partnership and reported on a one quarter lag. The managers provide unaudited quarterly financial statements and audited annual financial statements which set forth the value of the fund. The valuations obtained from the managers are based on various analyses on the underlying holdings in each partnership, including financial valuation models and projections, comparable valuations from the public markets, and precedent private market transactions. Investments are valued in the accompanying financial statements based on the Plan’s beneficial interest in the underlying net assets of the partnership as determined by the partnership agreement. Insurance group annuity contracts: The fair values for these investments are based on the current market value of the aggregate accumulated contributions plus interest earned. Swap assets (included in Other investments): Fair values for interest rate swaps, equity index swaps and inflation swaps are estimated using a discounted cash flow pricing model. These models use observable market data such as contractual fixed rate, broker quotes, spot equity price or index value and dividend data. The fair values of credit default swaps are estimated using an income approach model which determines expected cash flows based on default probabilities from the issuer-specific credit spread curve and credit loss recovery rates, both of which are dependent on market quotes. Real estate investment trusts (included in Corporate stocks): Valued at the closing price reported on an exchange. Short-term investment funds: Primarily high-grade money market instruments valued at net asset value at year-end. Real estate: Valued by investment managers generally using proprietary pricing models. Registered investment companies: Valued at the closing price reported on the primary exchange. Defined Contribution Plans The Company maintains certain defined contribution plans for its employees, including the Marsh & McLennan Companies 401(k) Savings & Investment Plan ("401(k) Plan"), that are qualified under U.S. tax laws. Under these plans, eligible employees may contribute a percentage of their base salary, subject to certain limitations. For the 401(k) Plan, the Company matches a fixed portion of the employees’ contributions. The 401(k) Plan contains an Employee Stock Ownership Plan feature under U.S. tax law. Approximately $398 million of the 401(k) Plan’s assets at December 31, 2015 and $453 million in December 31, 2014 were invested in the Company’s common stock. If a participant does not choose an investment direction for his or her future contributions, they are automatically invested in a BlackRock LifePath Portfolio that most closely matches the participant’s expected retirement year. The cost of these defined contribution plans was $51 million in 2015, $49 million in 2014 and $50 million in 2013. In addition, the Company has a significant defined contribution plan in the U.K. As noted above, effective August 1, 2014, a newly formed defined contribution plan replaced the existing defined contribution and defined benefit plans with regard to future service. The cost of the U.K. defined contribution plan was $93 million, $65 million and $23 million in 2015, 2014 and 2013, respectively. |
Stock Benefit Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Benefit Plans | Stock Benefit Plans The Company maintains multiple stock-based payment arrangements under which employees are awarded grants of restricted stock units, stock options and other forms of stock-based payment arrangements. Marsh & McLennan Companies, Inc. Incentive and Stock Award Plans On May 19, 2011, the Marsh & McLennan Companies, Inc. 2011 Incentive and Stock Award Plan (the "2011 Plan") was approved by the Company's stockholders. The 2011 Plan replaced the Company's two previous equity incentive plans (the 2000 Senior Executive Incentive and Stock Award Plan and the 2000 Employee Incentive and Stock Award Plan). The types of awards permitted under the 2011 Plan include stock options, restricted stock and restricted stock units payable in Company common stock or cash, and other stock-based and performance-based awards. The Compensation Committee of the Board of Directors (the "Compensation Committee") determines, at its discretion, which affiliates may participate in the 2011 Plan, which eligible employees will receive awards, the types of awards to be received, and the terms and conditions thereof. The right of an employee to receive an award may be subject to performance conditions as specified by the Compensation Committee. The 2011 Plan contains a provision which, in the event of a change in control of the Company, may accelerate the vesting of the awards. This provision requires both a change in control of the Company and a subsequent specified termination of employment for vesting to be accelerated. The 2011 Plan retains the remaining share authority of the two previous plans as of the date the 2011 Plan was approved by stockholders. Thus, approximately 23.2 million shares of common stock, plus shares remaining unused under the previous plans, are available for awards over the life of the 2011 Plan. The current practice is to grant non-qualified stock options, restricted stock units and/or performance stock units ("PSUs") on an annual basis to senior executives and a limited number of other employees as part of their total compensation. Restricted stock units are also granted to new hires or as retention awards for certain employees. Restricted stock has not been granted since 2005. Stock Options: Options granted under the 2011 Plan may be designated as either incentive stock options or non-qualified stock options. The Compensation Committee determines the terms and conditions of the option, including the time or times at which an option may be exercised, the methods by which such exercise price may be paid, and the form of such payment. Options are generally granted with an exercise price equal to the market value of the Company's common stock on the date of grant. These option awards generally vest 25% per annum and have a contractual term of 10 years. The estimated fair value of options granted is calculated using the Black-Scholes option pricing valuation model. This model takes into account several factors and assumptions. The risk-free interest rate is based on the yield on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumption at the time of grant. The expected life (estimated period of time outstanding) is estimated using the contractual term of the option and the effects of employees' expected exercise and post-vesting employment termination behavior. The Company uses a blended volatility rate based on the following: (i) volatility derived from daily closing price observations for the 10-year period ended on the valuation date, (ii) implied volatility derived from traded options for the period one week before the valuation date and (iii) average volatility for the 10-year periods ended on 15 anniversaries prior to the valuation date, using daily closing price observations. The expected dividend yield is based on expected dividends for the expected term of the stock options. The assumptions used in the Black-Scholes option pricing valuation model for options granted by the Company in 2015, 2014 and 2013 are as follows:
A summary of the status of the Company’s stock option awards as of December 31, 2015 and changes during the year then ended is presented below:
In the above table, forfeited options are unvested options whose requisite service period has not been met. Expired options are vested options that were not exercised. The weighted-average grant-date fair value of the Company's option awards granted during the years ended December 31, 2015, 2014 and 2013 was $11.34, $9.66 and $6.21, respectively. The total intrinsic value of options exercised during the same periods was $124.6 million, $174.3 million and $198.1 million, respectively. As of December 31, 2015, there was $11.8 million of unrecognized compensation cost related to the Company's option awards. The weighted-average period over which that cost is expected to be recognized is approximately 1.16 years. Cash received from the exercise of stock options for the years ended December 31, 2015, 2014 and 2013 was $134.7 million, $178.1 million and $281.1 million, respectively. The Company's policy is to issue treasury shares upon option exercises or share unit conversion. The Company intends to issue treasury shares as long as an adequate number of those shares is available. Restricted Stock Units and Performance Stock Units: Restricted stock units may be awarded under the Company's 2011 Incentive and Stock Award Plan. The Compensation Committee determines the restrictions on such units, when the restrictions lapse, when the units vest and are paid, and under what terms the units are forfeited. The cost of these awards is amortized over the vesting period, which is generally three years. Awards to senior executives and other employees may include three-year performance-based restricted stock units and three-year service-based restricted stock units. The payout of performance stock units (payable in shares of the Company's common stock) ranges, generally, from 0-200% of the number of units granted, based on the achievement of objective, pre-determined Company performance measures, generally, over a three-year performance period. The Company accounts for these awards as performance condition restricted stock units. The performance condition is not considered in the determination of grant date fair value of such awards. Compensation cost is recognized over the performance period based on management's estimate of the number of units expected to vest and is adjusted to reflect the actual number of shares paid out at the end of the three-year performance period. Dividend equivalents are not paid out unless and until such time that the award vests. A summary of the status of the Company's restricted stock units and performance stock units as of December 31, 2015 and changes during the period then ended is presented below:
The weighted-average grant-date fair value of the Company's restricted stock units granted during the years ended December 31, 2014 and 2013 was $48.16 and $36.70, respectively. The weighted average grant date fair value of the Company's performance stock units granted during the years ended December 31, 2014 and 2013 was $48.00 and $36.54, respectively. The total fair value of the shares distributed during the years ended December 31, 2015, 2014 and 2013 in connection with the Company's non-option equity awards was $114.3 million, $165.3 million and $205.5 million, respectively. The payout of shares in respect of PSUs awarded in 2012 that vested in 2015 on the PSU Scheduled Vesting Date was 200% of target. The payout of shares in respect of PSUs awarded in 2013 and 2014 that vested in 2015 (either in full or on a pro-rata basis due to certain types of termination) was 200% and 167% of target, respectively. In aggregate, 746,370 shares became distributable in respect to PSUs vested in 2015. Restricted Stock: Restricted shares of the Company's common stock may be awarded under the 2011 Plan and are subject to restrictions on transferability and other restrictions, if any, as the Compensation Committee may impose. The Compensation Committee may also determine when and under what circumstances the restrictions may lapse and whether the participant receives the rights of a stockholder, including, without limitation, the right to vote and receive dividends. Unless the Compensation Committee determines otherwise, restricted stock that is still subject to restrictions is forfeited upon termination of employment. There have been no restricted shares granted since 2005. A summary of the status of the Company's restricted stock awards as of December 31, 2015 and changes during the period then ended is presented below:
The total fair value of the Company's restricted stock distributed was $0.4 million during the year ended December 31, 2015 and $1.1 million during the year ended December 31, 2013. There were no restricted stock distributions during 2014. As of December 31, 2015, there was $94.5 million of unrecognized compensation cost related to the Company's restricted stock, restricted stock units and performance stock unit awards. The weighted-average period over which that cost is expected to be recognized is approximately 1.1 years. Marsh & McLennan Companies Stock Purchase Plans In May 1999, the Company's stockholders approved an employee stock purchase plan (the "1999 Plan") to replace the 1994 Employee Stock Purchase Plan (the "1994 Plan"), which terminated on September 30, 1999 following its fifth annual offering. Under the current terms of the Plan, shares are purchased four times during the plan year at a price that is 95% of the average market price on each quarterly purchase date. Under the 1999 Plan, after including the available remaining unused shares in the 1994 Plan and reducing the shares available by 10,000,000 consistent with the Company's Board of Directors' action in March 2007, no more than 35,600,000 shares of the Company's common stock may be sold. Employees purchased 507,411 shares during the year ended December 31, 2015 and at December 31, 2015, 2,271,784 shares were available for issuance under the 1999 Plan. Under the 1995 Company Stock Purchase Plan for International Employees (the "International Plan"), after reflecting the additional 5,000,000 shares of common stock for issuance approved by the Company's Board of Directors in July 2002, and the addition of 4,000,000 shares due to a shareholder action in May 2007, no more than 12,000,000 shares of the Company's common stock may be sold. Employees purchased 145,422 shares during the year ended December 31, 2015 and there were 2,748,564 shares available for issuance at December 31, 2015 under the International Plan. The plans are considered non-compensatory. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair Value Hierarchy The Company has categorized its assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy as defined by the accounting literature. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy, for disclosure purposes, is determined based on the lowest level input that is significant to the fair value measurement. Assets and liabilities recorded in the consolidated balance sheets at fair value are categorized based on the inputs in the valuation techniques as follows:
Assets and liabilities utilizing Level 1 inputs include exchange-traded mutual funds and money market funds.
The Company does not have any assets or liabilities that utilize Level 2 inputs.
Liabilities utilizing Level 3 inputs include liabilities for contingent purchase consideration. Valuation Techniques Equity Securities and Mutual Funds - Level 1 Investments for which market quotations are readily available are valued at the sale price on their principal exchange, or official closing bid price for certain markets. Contingent Purchase Consideration Liability - Level 3 Purchase consideration for some acquisitions made by the Company includes contingent consideration arrangements. Contingent consideration arrangements are primarily based on meeting EBITDA and revenue targets over periods from two to four years. The fair value of contingent consideration is estimated as the present value of future cash flows resulting from the projected revenue and earnings of the acquired entities. The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014:
(a) Included in other assets in the consolidated balance sheets. (b) Included in cash and cash equivalents in the consolidated balance sheets. (c) Included in accounts payable and accrued liabilities and other liabilities in the consolidated balance sheets. During the year ended December 31, 2015, there were no assets or liabilities that transferred between any of the levels. The table below sets forth a summary of the changes in fair value of the Company’s Level 3 liabilities for the years ended December 31, 2015 and December 31, 2014 that represent contingent purchase consideration related to acquisitions:
The fair value of the contingent purchase consideration liability is based on projections of revenue and earnings for the acquired entities that are reassessed on a quarterly basis. As set forth in the table above, based on the Company's ongoing assessment of the fair value of contingent consideration, the Company recorded a net increase in the estimated fair value of such liabilities for prior period acquisitions of $45 million for the year ended December 31, 2015. A 5% increase in the above mentioned projections would increase the liability by approximately $24 million. A 5% decrease in the above mentioned projections would decrease the liability by approximately $37 million. Long-Term Investments The Company holds investments in certain private companies, public companies and certain private equity investments that are accounted for using the equity method of accounting. The carrying value of these investments amounted to $347 million and $388 million at December 31, 2015 and 2014, respectively. The Company's investments in private equity funds were $76 million and $61 million at December 31, 2015 and December 31, 2014, respectively. The carrying values of these private equity investments approximates fair value. The underlying private equity funds follow investment company accounting, where investments within the fund are carried at fair value. The Company records in earnings, investment gains/losses for its proportionate share of the change in fair value of the funds. These investments would be classified as Level 3 in the fair value hierarchy and are included in other assets in the consolidated balance sheets. Alexander Forbes: During 2014, the Company acquired a 34% interest in South Africa-based Alexander Forbes Group Holding Limited ("Alexander Forbes") becoming a strategic shareholder after Alexander Forbes successfully launched an initial public offering. Mercer purchased its stake in Alexander Forbes in two tranches at 7.50 South African Rand per share for aggregate purchase consideration of approximately $300 million. Upon completion of the acquisition, the purchase price of the Alexander Forbes shares exceeded the Company's share of the equity in net assets by approximately $146 million. The majority of this basis difference resulted from the excess of the Company’s purchase price for the Alexander Forbes common stock acquired over the book value of Alexander Forbes’ net assets. Substantially all of this basis difference was allocated, based on the fair values of Alexander Forbes’ assets and liabilities, to the value of investment contracts, customer contracts and relationships acquired and technology related intangible assets, related deferred tax liability and goodwill. The basis difference related to these intangible assets (excluding goodwill) is recorded as additional amortization expense over their estimated lives. The basis difference related to the goodwill will be recognized upon disposition of our investment. Alexander Forbes principally focuses on employee benefits and investment solutions for institutional clients, and financial wellbeing and retail financial solutions for individual clients. Services include retirement funds and investment consulting, actuarial and administration services, employee risk benefits and health-care consulting, multi-manager investments solutions, and personal lines and business insurance. As of December 31, 2015, the carrying value of the Company’s investment in Alexander Forbes was approximately $230 million. As of December 31, 2015, the market value of the approximately 443 million shares owned by the Company, based on the December 31, 2015 closing share price of 5.78 South African Rand per share, was approximately $166 million. During 2015, the share price of Alexander Forbes ranged from 5.32 Rand to 10.38 Rand. The trading price first dropped below MMC's purchase price in November 2015. The Company considered several factors related to its investment in Alexander Forbes, including its financial position, the near- and long-term prospects of Alexander Forbes and the broader South African economy and capital markets, the length of time and extent to which the market value was below cost, and the Company’s intent and ability to retain the investment for a sufficient period of time to allow for anticipated recovery in market value. As a result, the Company determined the investment was not impaired. The carrying value of the Company’s investment in Alexander Forbes and its other investments in private companies that are accounted for using the equity method of accounting is included in other assets in the consolidated balance sheets and the related results are included in revenue in the consolidated income statements. The Company records its share of income or loss on its equity method investments on a one quarter lag basis. On February 24, 2015, Mercer purchased shares of common stock of Benefitfocus (NASDAQ:BNFT) constituting approximately 9.9% of BNFT's outstanding capital stock as of the acquisition date. The purchase price for the BNFT shares and certain other rights and other consideration was approximately $75 million. The Company has elected to account for this investment under the cost method of accounting as the shares purchased are categorized as restricted and cannot be sold for more than one year. Effective January 1, 2017, these shares will be be accounted for as available for sale securities and classified as Level 2 in the fair value hierarchy and included in other assets in the consolidated balance sheets. The value of the BNFT shares based on the closing price on the NASDAQ at December 31, 2015 and without regard to the restrictions on sale was approximately $102 million. The summarized financial information presented below reflects the aggregated financial information of all significant equity method investees as of and for the twelve months ended September 30 of each year (or portion of those twelve months the Company owned its investment), consistent with the Company’s recognition of the results of its equity method investments on a one quarter lag. The investment income information presented below reflects the net realized and unrealized gains/losses, net of expenses, related to the Company's investments in several private equity funds. Certain of the Company’s equity method investments, including Alexander Forbes, have unclassified balance sheets. Therefore, the asset and liability information presented below are not split between current and non-current. Below is a summary of the financial information for the Company's significant equity method investees:
The information above includes twelve months of income statement activity for Alexander Forbes in 2015 and two months of activity in 2014, reflecting the timing of the Company's investment. (a) Net investment income in 2015 includes approximately $1.5 billion related to Alexander Forbes, substantially all of which is credited to policy holders. |
Long-Term Commitments |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Commitments | Long-term Commitments The Company leases office facilities, equipment and automobiles under non-cancelable operating leases. These leases expire on varying dates, in some instances contain renewal and expansion options, do not restrict the payment of dividends or the incurrence of debt or additional lease obligations, and contain no significant purchase options. In addition to the base rental costs, occupancy lease agreements generally provide for rent escalations resulting from increased assessments for real estate taxes and other charges. Approximately 98% of the Company’s lease obligations are for the use of office space. The consolidated statements of income include net rental costs of $381 million, $393 million and $403 million for 2015, 2014 and 2013, respectively, after deducting rentals from subleases ($14 million in 2015, $12 million in 2014 and $13 million in 2013). These net rental costs exclude rental costs and sublease income for previously accrued restructuring charges related to vacated space. At December 31, 2015, the aggregate future minimum rental commitments under all non-cancelable operating lease agreements are as follows:
The Company has entered into agreements, primarily with various service companies, to outsource certain information systems activities and responsibilities and processing activities. Under these agreements, the Company is required to pay minimum annual service charges. Additional fees may be payable depending upon the volume of transactions processed, with all future payments subject to increases for inflation. At December 31, 2015, the aggregate fixed future minimum commitments under these agreements are as follows:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The Company’s outstanding debt is as follows:
* Amended to reflect the adoption in 2015 of new Financial Accounting Standards Board guidance related to the presentation of debt issuance costs. The senior notes in the table above are publically registered by the Company with no guarantees attached. In September 2015, the Company issued $600 million of 3.75% 10.5-year senior notes. The Company used the net proceeds for general corporate purposes. In March 2015, the Company issued $500 million of 2.35% five-year senior notes. The Company used the net proceeds for general corporate purposes. In September 2014, the Company issued $300 million of 2.35% five-year senior notes and $500 million of 3.50% 10.5-year senior notes. In October 2014, a significant portion of the net proceeds of this offering were used to redeem $630 million of debt, including $230 million of 5.75% senior notes due in September 2015 and $400 million of 9.25% senior notes due in 2019. Total cash outflow related to this transaction was approximately $765 million, including a $137 million cost for early redemption, which was reflected as a charge in the consolidated statements of income in the fourth quarter of 2014. In May 2014, the Company issued $600 million of 3.50% ten-year senior notes. The net proceeds of this offering were used for general corporate purposes, which included the repayment of $320 million of the existing 5.375% senior notes, which matured on July 15, 2014. On November 24, 2015, the Company and certain of its foreign subsidiaries amended a $1.2 billion multi-currency five-year revolving credit facility, that was due to expire in March 2019, into a new $1.5 billion multi-currency five-year unsecured revolving credit facility. The interest rate on this facility is based on LIBOR plus a fixed margin which varies with the Company's credit ratings. This facility expires in November 2020 and requires the Company to maintain certain coverage and leverage ratios which are tested quarterly. There were no borrowings outstanding under this facility at December 31, 2015. The Company and certain of its foreign subsidiaries previously maintained a $1.2 billion multi-currency five-year revolving credit facility. The facility was previously due to expire in March 2019 and was in effect until November 2015. There were no borrowings outstanding under this facility at the time it was amended. The Company has a $150 million uncommitted bank credit line. There were no borrowings under this facility at December 31, 2015. In December 2012, the Company closed on a $50 million, three-year term loan facility, which was terminated on October 30, 2015. Additional credit facilities, guarantees and letters of credit are maintained with various banks, primarily related to operations located outside the United States, aggregating $229 million at December 31, 2015 and $260 million at December 31, 2014. There was $0.4 million outstanding borrowings under these facilities at December 31, 2015 and $0.6 million outstanding borrowings under these facilities at December 31, 2014. Scheduled repayments of long-term debt in 2016 and in the four succeeding years are $12 million, $263 million, $262 million, $313 million and $514 million, respectively. Fair value of Short-term and Long-term Debt The estimated fair value of the Company’s short-term and long-term debt is provided below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or need to dispose of the financial instrument.
The fair value of the Company’s short-term debt consists primarily of term debt maturing within the next year and its fair value approximates its carrying value. The estimated fair value of a primary portion of the Company's long-term debt is based on discounted future cash flows using current interest rates available for debt with similar terms and remaining maturities. Short- and long-term debt would be classified as Level 2 in the fair value hierarchy. |
Integration and Restructuring Costs |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Integration and Restructuring Costs | Integration and Restructuring Costs In 2015, the Company implemented restructuring actions which resulted in costs totaling $28 million. Restructuring costs consist primarily of severance and benefits, costs for future rent and other real estate costs. These costs were incurred as follows: Risk and Insurance Services—$8 million; Consulting—$8 million; and Corporate—$12 million. Details of the restructuring liability activity from January 1, 2014 through December 31, 2015, including actions taken prior to 2015, are as follows:
As of January 1, 2013, the liability balance related to restructuring activity was $170 million. In 2013, the Company accrued $22 million and had cash payments and other adjustments of $68 million related to restructuring activities that resulted in the liability balance at January 1, 2014 reported above. The expenses associated with the above initiatives are included in compensation and benefits and other operating expenses in the consolidated statements of income. The liabilities associated with these initiatives are classified on the consolidated balance sheets as accounts payable and accrued liabilities, other liabilities, or accrued compensation and employee benefits, depending on the nature of the items. |
Common Stock |
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Equity [Abstract] | |
Common Stock | Common Stock During 2015, the Company repurchased 24.8 million shares of its common stock for total consideration of $1.4 billion. In May 2015, the Board of Directors renewed the Company's share repurchase program, allowing management to buy back up to $2 billion of the Company's common stock. The Company remains authorized to purchase additional shares of its common stock up to a value of approximately $1.2 billion. There is no time limit on the authorization. During 2014, the Company purchased 15.5 million shares of its common stock for total consideration of $800 million. |
Claims, Lawsuits And Other Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Claims, Lawsuits And Other Contingencies | Claims, Lawsuits and Other Contingencies Litigation Matters The Company and its subsidiaries are subject to a significant number of claims, lawsuits and proceedings in the ordinary course of business. Such claims and lawsuits consist principally of alleged errors and omissions in connection with the performance of professional services, including the placement of insurance, the provision of actuarial services for corporate and public sector clients, the provision of investment advice and investment management services to pension plans, the provision of advice relating to pension buy-out transactions and the provision of consulting services relating to the drafting and interpretation of trust deeds and other documentation governing pension plans. These claims may seek damages, including punitive and treble damages, in amounts that could, if awarded, be significant. In establishing liabilities for errors and omissions claims in accordance with FASB ASC Subtopic No. 450-20 (Contingencies-Loss Contingencies), the Company uses case level reviews by inside and outside counsel, an internal actuarial analysis and other analysis to estimate potential losses. A liability is established when a loss is both probable and reasonably estimable. The liability is reviewed quarterly and adjusted as developments warrant. In many cases, the Company has not recorded a liability, other than for legal fees to defend the claim, because we are unable, at the present time, to make a determination that a loss is both probable and reasonably estimable. To the extent that expected losses exceed our deductible in any policy year, the Company also records an asset for the amount that we expect to recover under any available third-party insurance programs. The Company has varying levels of third-party insurance coverage, with policy limits and coverage terms varying significantly by policy year. Governmental Inquiries and Enforcement Matters Our activities are regulated under the laws of the United States and its various states, the European Union and its member states, and the other jurisdictions in which the Company operates. In the ordinary course of business, the Company is also subject to subpoenas, investigations, lawsuits and other regulatory actions undertaken by governmental authorities. Other Contingencies-Guarantees In connection with its acquisition of U.K.-based Sedgwick Group in 1998, the Company acquired several insurance underwriting businesses that were already in run-off, including River Thames Insurance Company Limited ("River Thames"), which the Company sold in 2001. Sedgwick guaranteed payment of claims on certain policies underwritten through the Institute of London Underwriters (the "ILU") by River Thames. The policies covered by this guarantee were reinsured up to £40 million by a related party of River Thames. Payment of claims under the reinsurance agreement is collateralized by segregated assets held in a trust. As of December 31, 2015, the reinsurance coverage exceeded the best estimate of the projected liability of the policies covered by the guarantee. To the extent River Thames or the reinsurer is unable to meet its obligations under those policies, a claimant may seek to recover from the Company under the guarantee. From 1980 to 1983, the Company owned indirectly the English & American Insurance Company (“E&A”), which was a member of the ILU. The ILU required the Company to guarantee a portion of E&A's obligations. After E&A became insolvent in 1993, the ILU agreed to discharge the guarantee in exchange for the Company's agreement to post an evergreen letter of credit that is available to pay claims by policyholders on certain E&A policies issued through the ILU and incepting between July 3, 1980 and October 6, 1983. Certain claims have been paid under the letter of credit and the Company anticipates that additional claimants may seek to recover against the letter of credit. Kroll-related Matters Under the terms of a stock purchase agreement with Altegrity, Inc. ("Altegrity") related to Altegrity's purchase of Kroll from the Company in August 2010, a copy of which is attached as an exhibit to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2010, the Company agreed to provide a limited indemnity to Altegrity with respect to certain Kroll-related litigation and regulatory matters. * * * * The pending proceedings and other matters described in this Note 15 on Claims, Lawsuits and Other Contingencies may expose the Company or its subsidiaries to liability for significant monetary damages and other forms of relief. Where a loss is both probable and reasonably estimable, the Company establishes liabilities in accordance with FASB ASC Subtopic No. 450-20 (Contingencies-Loss Contingencies). Except as described above, the Company is not able at this time to provide a reasonable estimate of the range of possible loss attributable to these matters or the impact they may have on the Company's consolidated results of operations, financial position or cash flows. This is primarily because these matters are still developing and involve complex issues subject to inherent uncertainty. Adverse determinations in one or more of these matters could have a material impact on the Company's consolidated results of operations, financial condition or cash flows in a future period. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company is organized based on the types of services provided. Under this organizational structure, the Company’s segments are:
The accounting policies of the segments are the same as those used for the consolidated financial statements described in Note 1. Segment performance is evaluated based on segment operating income, which includes directly related expenses, and charges or credits related to integration and restructuring but not the Company’s corporate-level expenses. Revenues are attributed to geographic areas on the basis of where the services are performed. Selected information about the Company’s segments and geographic areas of operation are as follows:
Details of operating segment revenue are as follows:
Information by geographic area is as follows:
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Selected Quarterly Financial Data and Supplemental Information |
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Quarterly Financial Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data and Supplemental Information |
As of February 18th, 2016, there were 5,927 stockholders of record. |
Summary of Significant Accounting Policies (Policies) |
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Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations: Marsh & McLennan Companies, Inc. (the "Company”), a global professional services firm, is organized based on the different services that it offers. Under this organizational structure, the Company’s two business segments are Risk and Insurance Services and Consulting. The Risk and Insurance Services segment provides risk management activities and insurance broking, reinsurance broking and insurance program management services for businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Company conducts business in this segment through Marsh and Guy Carpenter. The Company conducts business in its Consulting segment through two main business groups. Mercer provides consulting expertise, advice, services and solutions in the areas of health, retirement, talent and investments. Oliver Wyman Group provides specialized management and economic and brand consulting services. |
Principles of Consolidation | Principles of Consolidation: The accompanying consolidated financial statements include all wholly-owned and majority-owned subsidiaries. All significant inter-company transactions and balances have been eliminated. |
Fiduciary Assets And Liabilities | Fiduciary Assets and Liabilities: In its capacity as an insurance broker or agent, the Company generally collects premiums from insureds and, after deducting its commissions, remits the premiums to the respective insurance underwriters. The Company also collects claims or refunds from underwriters on behalf of insureds. Unremitted insurance premiums and claims proceeds are held by the Company in a fiduciary capacity. Risk and Insurance Services revenue includes interest on fiduciary funds of $21 million, $24 million and $27 million in 2015, 2014 and 2013, respectively. The Consulting segment recorded fiduciary interest income of $4 million, $6 million and $5 million in 2015, 2014 and 2013, respectively. Since fiduciary assets are not available for corporate use, they are shown in the consolidated balance sheets as an offset to fiduciary liabilities. Net uncollected premiums and claims and the related payables were $6.9 billion and $7.3 billion at December 31, 2015 and 2014, respectively. The Company is not a principal to the contracts under which the right to receive premiums or the right to receive reimbursement of insured losses arises. Net uncollected premiums and claims and the related payables are, therefore, not assets and liabilities of the Company and are not included in the accompanying consolidated balance sheets. In certain instances, the Company advances premiums, refunds or claims to insurance underwriters or insureds prior to collection. These advances are made from corporate funds and are reflected in the accompanying consolidated balance sheets as receivables. Mercer manages approximately $21 billion of assets in trusts or funds for which Mercer’s management or trustee fee is considered a variable interest. Mercer is not the primary beneficiary of these trusts or funds. Mercer’s only variable interest in any of these trusts or funds is its unpaid fees, if any. Mercer’s maximum exposure to loss of its interests is, therefore, limited to collection of its fees. |
Revenue | Revenue: Risk and Insurance Services revenue includes insurance commissions, fees for services rendered and interest income on certain fiduciary funds. Insurance commissions and fees for risk transfer services generally are recorded as of the effective date of the applicable policies or, in certain cases (primarily in the Company's reinsurance broking operations), as of the effective date or billing date, whichever is later. A reserve for policy cancellation is provided based on historic and current data on cancellations. Consideration for fee arrangements covering multiple insurance placements, the provision of risk management and/or other services are allocated to all deliverables on the basis of their relative selling prices. Fees for non-risk transfer services provided to clients are recognized over the period in which the services are provided, using a proportional performance model. Fees resulting from achievement of certain performance thresholds are recorded when such levels are attained and such fees are not subject to forfeiture. Consulting revenue includes fees paid by clients for advice and services and commissions from insurance companies for the placement of individual and group contracts. Fee revenue for engagements where remuneration is based on time plus out-of-pocket expenses is recognized based on the amount of time consulting professionals expend on the engagement. For fixed fee engagements, revenue is recognized using a proportional performance model. Revenue from insurance commissions not subject to a fee arrangement is recorded over the effective period of the applicable policies. Revenue for asset based fees is recognized on an accrual basis by applying the daily/monthly rate as contractually agreed with the client to the applicable net asset value. On a limited number of engagements, performance fees may also be earned for achieving certain prescribed performance criteria. Such fees are recognized when the performance criteria have been achieved and, when required, agreed to by the client. Reimbursable expenses incurred by professional staff in the generation of revenue and sub-advisory fees related to the majority of funds in the investment management business are included in revenue and the related expenses are included in other operating expenses. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents primarily consist of certificates of deposit and time deposits, with original maturities of three months or less, and money market funds. The estimated fair value of the Company's cash and cash equivalents approximates their carrying value. The Company is required to maintain operating funds primarily related to regulatory requirements outside the U.S. or as collateral under captive insurance arrangements. |
Fixed Assets | Fixed Assets: Fixed assets are stated at cost less accumulated depreciation and amortization. Expenditures for improvements are capitalized. Upon sale or retirement, the cost and related accumulated depreciation and amortization are removed from the accounts and any gain or loss is reflected in income. Expenditures for maintenance and repairs are charged to operations as incurred. Depreciation of buildings, building improvements, furniture, and equipment is provided on a straight-line basis over the estimated useful lives of these assets. Furniture and equipment is depreciated over periods ranging from three to ten years. Leasehold improvements are amortized on a straight-line basis over the periods covered by the applicable leases or the estimated useful life of the improvement, whichever is less. Buildings are depreciated over periods ranging from thirty to forty years. The Company periodically reviews long-lived assets for impairment whenever events or changes indicate that the carrying value of assets may not be recoverable. |
Investments | Investments: The Company holds investments in private companies and private equity funds. Investments in private equity funds are accounted for under the equity method of accounting using a consistently applied three-month lag period adjusted for any known significant changes from the lag period to the reporting date of the Company. The underlying private equity funds follow investment company accounting, where investments within the fund are carried at fair value. The Company records in earnings, investment gains/losses for its proportionate share of the change in fair value of the funds. Investments using the equity method of accounting are included in other assets in the consolidated balance sheets. As part of the sale of MMC Capital in 2005, the Company retained the rights to receive certain performance fees related to the Trident II and Trident III private equity partnerships. The Company recognizes performance fee income when such fees are no longer subject to forfeiture, which may take a number of years to resolve. This income is based on the investment performance over the life of each investment in the private equity fund, and future declines in the fund performance from current levels may result in forfeiture of such revenue. Since Trident II fully harvested all its portfolio investments and made final distributions to its partners in 2013, the Company no longer holds any rights to Trident II performance fees. In 2015, the Company recorded investment income of $38 million compared to $37 million in 2014 and $69 million in 2013. The Company recorded investment income related to its general partner carried interest from Trident III no longer subject to clawback of $29 million, $31 million and $41 million in 2015, 2014 and 2013, respectively. In 2013, the Company recorded $15 million of general partner carried interest from Trident II. Stonepoint Capital, the investment manager of Trident III, harvested its remaining two investments in Trident III in the third quarter of 2015, which resulted in the Company recognizing its remaining deferred performance fees. |
Goodwill and Intangible Assets | Goodwill and Other Intangible Assets: Goodwill represents acquisition costs in excess of the fair value of net assets acquired. Goodwill is reviewed at least annually for impairment. The Company performs an annual impairment test for each of its reporting units during the third quarter of each year. When a step 1 test is performed, fair values of the reporting units are estimated using either a market approach or a discounted cash flow model. Carrying values for the reporting units are based on balances at the prior quarter end and include directly identified assets and liabilities as well as an allocation of those assets and liabilities not recorded at the reporting unit level. As discussed in Note 6, the Company may elect to assess qualitative factors to determine if a step 1 test is necessary. Other intangible assets, which primarily consist of customer lists that are not deemed to have an indefinite life, are amortized over their estimated lives, typically ranging from 10 to 15 years, and reviewed for impairment upon the occurrence of certain triggering events in accordance with applicable accounting literature. |
Capitalized Software Costs | Capitalized Software Costs: The Company capitalizes certain costs to develop, purchase or modify software for the internal use of the Company. These costs are amortized on a straight-line basis over periods ranging from 3 to 10 years. Costs incurred during the preliminary project stage and post implementation stage, are expensed as incurred. Costs incurred during the application development stage are capitalized. Costs related to updates and enhancements are only capitalized if they will result in additional functionality. Capitalized computer software costs of $498 million and $501 million, net of accumulated amortization of $958 million and $837 million at December 31, 2015 and 2014, respectively, are included in other assets in the consolidated balance sheets. |
Legal and Other Loss Contingencies | Legal and Other Loss Contingencies: The Company and its subsidiaries are subject to a significant number of claims, lawsuits and proceedings including claims for errors and omissions ("E&O"). The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires that a liability be recorded when a loss is both probable and reasonably estimable. Significant management judgment is required to apply this guidance. The Company utilizes case level reviews by inside and outside counsel, an internal actuarial analysis and other analysis to estimate potential losses. The liability is reviewed quarterly and adjusted as developments warrant. In many cases, the Company has not recorded a liability, other than for legal fees to defend the claim, because we are unable, at the present time, to make a determination that a loss is both probable and reasonably estimable. Given the unpredictability of E&O claims and of litigation that could flow from them, it is possible that an adverse outcome in a particular matter could have a material adverse effect on the Company’s businesses, results of operations, financial condition or cash flow in a given quarterly or annual period. In addition, to the extent that insurance coverage is available, significant management judgment is required to determine the amount of recoveries that are probable of collection under the Company’s various insurance programs. The legal and other contingent liabilities described above are not discounted. |
Income Taxes | Income Taxes: The Company's effective tax rate reflects its income, statutory tax rates and tax planning in the various jurisdictions in which it operates. Significant judgment is required in determining the annual effective tax rate and in evaluating uncertain tax positions and the ability to realize deferred tax assets. The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The evaluation of a tax position is a two-step process. The first step involves recognition. The Company determines whether it is more likely than not that a tax position will be sustained upon tax examination, including resolution of any related appeals or litigation, based on only the technical merits of the position. The technical merits of a tax position derive from both statutory and judicial authority (legislation and statutes, legislative intent, regulations, rulings, and case law) and their applicability to the facts and circumstances of the tax position. If a tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate resolution with a taxing authority. Uncertain tax positions are evaluated based upon the facts and circumstances that exist at each reporting period. Subsequent changes in judgment based upon new information may lead to changes in recognition, de-recognition, and measurement. Adjustments may result, for example, upon resolution of an issue with the taxing authorities, or expiration of a statute of limitations barring an assessment for an issue. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Tax law requires items to be included in the Company's tax returns at different times than the items are reflected in the financial statements. As a result, the annual tax expense reflected in the consolidated statements of income is different than that reported in the income tax returns. Some of these differences are permanent, such as expenses that are not deductible in the returns, and some differences are temporary and reverse over time, such as depreciation expense. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in tax returns in future years for which benefit has already been recorded in the financial statements. Valuation allowances are established for deferred tax assets when it is estimated that future taxable income will be insufficient to use a deduction or credit in that jurisdiction. Deferred tax liabilities generally represent tax expense recognized in the financial statements for which payment has been deferred, or expense for which a deduction has been taken already in the tax return but the expense has not yet been recognized in the financial statements. |
Derivative Instruments | Derivative Instruments: All derivatives, whether designated in hedging relationships or not, are recorded on the balance sheet at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. The fair value of the derivative is recorded in the consolidated balance sheet in other receivables or accounts payable and accrued liabilities. The change in the fair value of a derivative is recorded in the consolidated statement of income in other operating expenses. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income and are recognized in the income statement when the hedged item affects earnings. Changes in the fair value attributable to the ineffective portion of cash flow hedges are recognized in earnings. |
Concentrations Of Credit Risk | Concentrations of Credit Risk: Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, commissions and fees receivable and insurance recoverable. The Company maintains a policy providing for the diversification of cash and cash equivalent investments and places its investments in a large number of high quality financial institutions to limit the amount of credit risk exposure. Concentrations of credit risk with respect to receivables are generally limited due to the large number of clients and markets in which the Company does business, as well as the dispersion across many geographic areas. |
Per Share Data | Per Share Data: Basic net income per share attributable to the Company and income from continuing operations per share are calculated by dividing the respective after-tax income attributable to common shares by the weighted average number of outstanding shares of the Company’s common stock. Diluted net income per share attributable to the Company and income from continuing operations per share are calculated by dividing the respective after-tax income attributable to common shares by the weighted average number of outstanding shares of the Company’s common stock, which have been adjusted for the dilutive effect of potentially issuable common shares. |
Estimates | Estimates: GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may vary from those estimates. |
New Accounting Pronouncements | New Accounting Pronouncements: In September 2015, the Financial Accounting Standards Board (the "FASB") issued new guidance intended to simplify the accounting for adjustments made to provisional amounts recognized in business combinations. The guidance requires the acquirer to recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustments are determined, and to record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed as of the acquisition date. The guidance also includes additional disclosures required for the amounts recorded in current period earnings arising from such adjustments. The guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The guidance should be applied prospectively for adjustments to provisional amounts after the effective date, with earlier application permitted for financial statements that have not been issued. The adoption of this new guidance is not expected to have a material impact on the Company's financial statements. In May 2015, the FASB issued new guidance which removes the requirement to present certain investments for which the practical expedient is used to measure fair value at net asset value within the fair value hierarchy table. Instead, an entity would be required to include those investments as a reconciling item so that the total fair value amount of investments in the disclosure is consistent with the fair value investment balance on the statement of net assets. This guidance is effective for fiscal years beginning after December 15, 2015. The adoption of this new guidance will affect footnote disclosure and is not expected to have a material impact on the Company's financial statements. In February 2015, the FASB issued new accounting guidance intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations and securitization structures. The guidance focuses on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The guidance is effective for periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a material impact on the Company's financial statements. In January 2015, the FASB issued new accounting guidance that eliminated the concept of extraordinary items. The guidance is effective for annual periods beginning after December 15, 2015. The guidance may be adopted prospectively, or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided the guidance is applied from the beginning of the fiscal year of adoption. Adoption of the guidance is not expected to materially affect the Company's financial condition, results of operations or cash flows. In June 2014, the FASB issued new accounting guidance to clarify the treatment of share-based payment awards that require a specific performance target to be achieved in order for employees to be eligible to vest in the awards which include terms that may provide that the performance conditions could be achieved after an employee completes the requisite service period. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, a reporting entity should apply the existing guidance as it relates to awards with performance conditions that affect vesting. The guidance is effective for annual periods beginning after December 15, 2015. Earlier adoption is permitted. Adoption of the guidance is not expected to materially affect the Company's financial condition, results of operations or cash flows. In May 2014, the FASB issued new accounting guidance to clarify the principles for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of 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. To achieve that principle, the entity should apply the following steps: identify the contract(s) with the customer, identify the performance obligations in the contract(s), determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. Entities are permitted to adopt the guidance under one of the following methods: retrospectively to each prior reporting period presented (with certain practical expedients allowed) or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. If an entity elects this transition method, it must provide disclosures in reporting periods that include the date of initial application of the amount by which each financial statement line item is affected in the current reporting period by application of the guidance as compared to guidance that was in effect before the change, and an explanation for the reasons for significant changes. The Company is currently evaluating the impact of the adoption of the guidance on its financial condition and results of operations. New Accounting Pronouncements Recently Adopted In November 2015, the FASB issued a new standard related to the balance sheet classification of deferred taxes ("deferred tax standard"), which simplifies the presentation of deferred income taxes. The deferred tax standard requires companies to classify deferred tax assets and liabilities as noncurrent in the consolidated balance sheet. The previous standard required companies to classify deferred tax assets and liabilities as current and noncurrent. The deferred tax standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted for any interim and annual financial statements that have not yet been issued. Effective December 31, 2015, the Company early adopted the deferred tax standard retrospectively, as a change in accounting principle. The impact of this change on the Company's prior years Consolidated Balance Sheets and Consolidated Statements of Cash Flows is shown in the table below. The adoption of this standard had no impact on our results of operations. In April 2015, the FASB issued a new standard related to the presentation of debt issuance costs ("debt issuance costs standard"). The debt issuance cost standard requires debt issuance costs related to recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The previous standard required these debt issuance costs be classified as an asset and amortized ratably over the life of the debt. The debt issuance cost standard is effective for fiscal years beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted for any interim and annual financial statements that have not yet been issued. In April 2014, the FASB issued new accounting guidance which changes the criteria for reporting discontinued operations and enhances disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations, such as disposal of a major geographic area or a major line of business, should be presented as discontinued operations. Those strategic shifts should have a major impact on the organization's operations and financial results. In addition, the new guidance requires expanded disclosures about discontinued operations. The guidance is effective for fiscal years beginning on or after December 15, 2014. Adoption of the guidance did not have a material affect on the Company's financial condition, results of operations or cash flows. |
Reclassification | Reclassifications In addition to the above changes, reclassifications have been made to prior period amounts to conform with current year separate presentation of goodwill and other intangible assets in the consolidated balance sheets. |
Summary of Significant Accounting Policies (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of fixed assets | The components of fixed assets are as follows:
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Diluted earnings per share for continuing operations | Reconciliations of the applicable income components used for diluted EPS - Continuing Operations and basic weighted average common shares outstanding to diluted weighted average common shares outstanding are presented below. The reconciling items related to the calculation of diluted weighted average common shares outstanding are the same for net income attributable to the Company.
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Schedule of new accounting pronouncements and changes in accounting principles | The Company has elected to early adopt the debt issuance costs standard, effective December 31, 2015. The adoption of the debt issuance costs standard had no impact on our results of operations. This guidance is effective on a retrospective basis, as a change in accounting principle. The impact of this change on the Company's prior years Consolidated Balance Sheets and Consolidated Statements of Cash Flows is shown in the table below.
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Supplemental Disclosures (Tables) |
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Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional information concerning acquisitions, interest and income taxes paid | The following schedule provides additional information concerning acquisitions, interest and income taxes paid:
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Analysis of allowance for doubtful accounts | An analysis of the allowance for doubtful accounts is as follows:
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Other Comprehensive Income (Loss) (Tables) |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive income (loss) | The changes in the balances of each component of Accumulated Other Comprehensive Income ("AOCI") for the years ended December 31, 2015 and 2014, including amounts reclassified out of AOCI, are as follows:
The components of accumulated other comprehensive income (loss) are as follows:
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Schedule of other comprehensive income (loss) | The components of other comprehensive income (loss) are as follows:
(a) Components of net periodic pension cost are included in compensation and benefits in the Consolidated Statements of Income. Tax on prior service gains and net actuarial losses is included in income tax expense.
(a) Components of net periodic pension cost are included in compensation and benefits in the Consolidated Statements of Income. Tax on prior service gains and net actuarial losses is included in income tax expense.
(a) Components of net periodic pension cost are included in compensation and benefits in the Consolidated Statements of Income. Tax on prior service gains and net actuarial losses is included in income tax expense. |
Acquisitions / Dispositions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of acquisition costs | The following table presents the preliminary allocation of the acquisition cost to the assets acquired and liabilities assumed, based on their fair values:
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Acquired finite-lived intangible assets | The following chart provides information of other intangible assets acquired during 2015:
(a) Primarily non-compete agreements, trade names and developed technology |
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Pro-forma information | The unaudited pro-forma financial data is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved if such acquisitions had occurred on the dates indicated, nor is it necessarily indicative of future consolidated results.
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Discontinued Operations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income statement data | Discontinued operations in 2013 includes estimated costs covered under the indemnity related to the Kroll sale as well as tax indemnities related to the Putnam sale. Summarized Statements of Income data for discontinued operations is as follows:
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Goodwill And Other Intangibles (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill are as follows:
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Schedule of Finite-Lived Intangible Assets | The gross cost and accumulated amortization at December 31, 2015 and 2014 are as follows:
(a) Primarily non-compete agreements, trade names and developed technology |
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Estimated Future Aggregate Amortization Expense | The estimated future aggregate amortization expense is as follows:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes on income | For financial reporting purposes, income before income taxes includes the following components:
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Deferred income tax assets and liabilities | The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows:
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U.S. Federal statutory income tax rate | A reconciliation from the U.S. Federal statutory income tax rate to the Company’s effective income tax rate is shown below:
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Unrecognized tax benefits | Following is a reconciliation of the Company’s total gross unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013:
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Retirement Benefits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted average actuarial assumptions utilized defined benefit plans | The weighted average actuarial assumptions utilized for the non-U.S. defined and postretirement benefit plans as of the end of the year are as follows:
The weighted average actuarial assumptions utilized in determining the above amounts for the U.S. defined benefit and other U.S. postretirement plans as of the end of the year are as follows:
The weighted average actuarial assumptions utilized for the U.S. and significant non-U.S. defined benefit plans and postretirement benefit plans are as follows:
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Schedule of components of net periodic benefit cost for U.S. defined benefit and other postretirement benefit plans | The components of the net periodic benefit cost for the U.S. defined benefit and other postretirement benefit plans are as follows:
The components of the net periodic benefit cost for the non-U.S. defined benefit and other postretirement benefit plans and the curtailment, settlement and termination expenses are as follows:
The components of the net periodic benefit cost for defined benefit and other postretirement plans are as follows:
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Schedule of MMC's defined benefit plans and postretirement plans | The following schedules provide information concerning the Company’s U.S. defined benefit pension plans and postretirement benefit plans:
The following schedules provide information concerning the Company’s non-U.S. defined benefit pension plans and non-U.S. postretirement benefit plans:
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Schedule of total recognized in net periodic benefit cost and other comprehensive income (loss) |
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Schedule of amounts recognized in other comprehensive income (loss) |
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Schedule of estimated amounts that will be amortized from accumulated other comprehensive in the next fiscal year | Estimated amounts that will be amortized from accumulated other comprehensive loss in the next fiscal year:
Estimated amounts that will be amortized from accumulated other comprehensive income in the next fiscal year:
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Schedule of change in assumed health care cost trend rates | A one percentage point change in assumed health care cost trend rates would have the following effects:
A one percentage point change in assumed health care cost trend rates would have no effect on the total service and interest cost components or the postretirement benefit obligation. |
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Schedule of estimated future benefit payments for its pension and postretirement benefits | The Plans' estimated future benefit payments for its pension and postretirement benefits (without reduction for Medicare subsidy receipts) are as follows:
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Summary of the U.S. and non-U.S. plans investments measured at fair value on a recurring basis | The following table sets forth, by level within the fair value hierarchy, a summary of the U.S. and non-U.S. plans' investments measured at fair value on a recurring basis at December 31, 2015 and 2014:
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Summary of changes in the fair value of the plans' Level 3 assets | The tables below set forth a summary of changes in the fair value of the plans’ Level 3 assets for the years ended December 31, 2015 and December 31, 2014:
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Stock Benefit Plans (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option pricing valuation model for options granted | The assumptions used in the Black-Scholes option pricing valuation model for options granted by the Company in 2015, 2014 and 2013 are as follows:
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Summary of the status of MMC's stock option awards | A summary of the status of the Company’s stock option awards as of December 31, 2015 and changes during the year then ended is presented below:
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Summary of restricted stock units and performance stock units | A summary of the status of the Company's restricted stock units and performance stock units as of December 31, 2015 and changes during the period then ended is presented below:
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Summary of restricted stock awards activity | A summary of the status of the Company's restricted stock awards as of December 31, 2015 and changes during the period then ended is presented below:
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014:
(a) Included in other assets in the consolidated balance sheets. (b) Included in cash and cash equivalents in the consolidated balance sheets. (c) Included in accounts payable and accrued liabilities and other liabilities in the consolidated balance sheets. |
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Changes in fair value of level 3 liabilities representing acquisition related contingent consideration | The table below sets forth a summary of the changes in fair value of the Company’s Level 3 liabilities for the years ended December 31, 2015 and December 31, 2014 that represent contingent purchase consideration related to acquisitions:
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Equity method investments summarized financial information | Below is a summary of the financial information for the Company's significant equity method investees:
The information above includes twelve months of income statement activity for Alexander Forbes in 2015 and two months of activity in 2014, reflecting the timing of the Company's investment. (a) Net investment income in 2015 includes approximately $1.5 billion related to Alexander Forbes, substantially all of which is credited to policy holders. |
Long-Term Commitments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum rental payments for operating leases | At December 31, 2015, the aggregate future minimum rental commitments under all non-cancelable operating lease agreements are as follows:
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Future minimum rental commitments | At December 31, 2015, the aggregate fixed future minimum commitments under these agreements are as follows:
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company’s outstanding debt | The Company’s outstanding debt is as follows:
* Amended to reflect the adoption in 2015 of new Financial Accounting Standards Board guidance related to the presentation of debt issuance costs. |
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Estimated fair value of short-term and long-term debt | The fair value amounts shown below are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or need to dispose of the financial instrument.
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Integration and Restructuring Costs (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring activities | Details of the restructuring liability activity from January 1, 2014 through December 31, 2015, including actions taken prior to 2015, are as follows:
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected information and details for MMC's operating segments | Selected information about the Company’s segments and geographic areas of operation are as follows:
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Details of operating segment revenue | Details of operating segment revenue are as follows:
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Information by geographic area | Information by geographic area is as follows:
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Selected Quarterly Financial Data and Supplemental Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Data and Supplemental Information |
|
Summary of Significant Accounting Policies (Basic and Diluted EPS Calculation for Continuing Operations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
Income from continuing operations | $ 380 | $ 329 | $ 429 | $ 498 | $ 269 | $ 305 | $ 440 | $ 457 | $ 1,636 | $ 1,471 | $ 1,379 |
Less: Net income attributable to non-controlling interests | 37 | 32 | 28 | ||||||||
Net income attributable to the Company | $ 1,599 | $ 1,439 | $ 1,351 | ||||||||
Basic weighted average common shares outstanding (in shares) | 531 | 545 | 549 | ||||||||
Dilutive effect of potentially issuable common shares (in shares) | 5 | 8 | 9 | ||||||||
Dilutive weighted average common shares outstanding (in shares) | 536 | 553 | 558 | ||||||||
Average stock price used to calculate common stock equivalents (in dollars per share) | $ 56.27 | $ 51.15 | $ 40.97 |
Supplemental Disclosures (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Stock-based compensation expense, equity awards | $ 67 | $ 75 | $ 110 |
Non-cash issuance of common stock | 72 | 108 | 150 |
Deferred purchase consideration from prior years' acquisitions | 36 | $ 25 | $ 15 |
Putnam | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash used in operating activities, discontinued operations | $ 82 |
Supplemental Disclosures (Schedule of Supplemental Cash Flow Disclosures) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Supplemental Cash Flow Information [Abstract] | |||
Assets acquired, excluding cash | $ 1,327 | $ 815 | $ 217 |
Liabilities assumed | (199) | (64) | (53) |
Contingent/deferred purchase consideration | (176) | (197) | (39) |
Net cash outflow for current year acquisitions | 952 | 554 | 125 |
Purchase of other intangibles | 0 | 0 | 2 |
Net cash outflow for acquisitions | 952 | 554 | 127 |
Interest paid | 146 | 172 | 170 |
Income taxes paid, net of refunds | $ 433 | $ 426 | $ 360 |
Supplemental Disclosures (Schedule of Analysis for Doubtful Accounts) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of year | $ 95 | $ 98 | $ 106 |
Provision charged to operations | 14 | 20 | 16 |
Accounts written-off, net of recoveries | (18) | (17) | (19) |
Effect of exchange rate changes and other | (4) | (6) | (5) |
Balance at end of year | $ 87 | $ 95 | $ 98 |
Acquisitions / Dispositions (Allocation Of Acquisition Costs) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Business Acquisition [Line Items] | |||
Intangible asset useful life | 10 years | ||
Cash | $ 1,000 | $ 575 | |
Estimated fair value of deferred/contingent consideration | 176 | 197 | $ 39 |
Total consideration | 1,200 | 772 | |
Allocation of purchase price: | |||
Goodwill | 7,889 | $ 7,241 | $ 6,893 |
Current Fiscal Period Acquisitions | |||
Business Acquisition [Line Items] | |||
Cash | 1,004 | ||
Estimated fair value of deferred/contingent consideration | 176 | ||
Total consideration | 1,180 | ||
Allocation of purchase price: | |||
Cash and cash equivalents | 52 | ||
Accounts receivable, net | 39 | ||
Other current assets | 5 | ||
Property, plant, and equipment | 11 | ||
Other intangible assets | 486 | ||
Goodwill | 783 | ||
Other assets | 3 | ||
Total assets acquired | 1,379 | ||
Current liabilities | 106 | ||
Other liabilities | 93 | ||
Total liabilities assumed | 199 | ||
Net assets acquired | $ 1,180 |
Acquisitions / Dispositions (Acquired Finite-Lived Intangibles Assets) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 486 |
Customer Lists | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 433 |
Finite-lived intangible assets, remaining amortization period | 13 years |
Other Intangible Assets | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 53 |
Finite-lived intangible assets, remaining amortization period | 4 years 9 months 18 days |
Acquisitions / Dispositions (Pro-Forma Information) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Business Combinations [Abstract] | |||
Revenue | $ 13,185 | $ 13,395 | $ 12,550 |
Income from continuing operations | 1,676 | 1,475 | 1,395 |
Net income attributable to the Company | $ 1,639 | $ 1,469 | $ 1,373 |
Basic net income per share: | |||
Basic net income per share - Continuing operations (in dollars per share) | $ 3.09 | $ 2.65 | $ 2.49 |
Basic net income per share - Net income attributable to the Company (in dollars per share) | 3.09 | 2.69 | 2.50 |
Diluted net income per share: | |||
Diluted net income per share - Continuing operations (in dollars per share) | 3.05 | 2.61 | 2.45 |
Diluted net income per share - Net income attributable to the Company (in dollars per share) | $ 3.05 | $ 2.66 | $ 2.46 |
Discontinued Operations (Income Statement Data) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 |
Disposals of discontinued operations | (5) | 42 | (4) |
Income tax (credit) expense | (5) | 16 | (10) |
Disposals of discontinued operations, net of tax | 0 | 26 | 6 |
Discontinued operations, net of tax | $ 0 | $ 26 | $ 6 |
Discontinued operations, net of tax per share | |||
- Basic (in dollars per share) | $ 0.00 | $ 0.05 | $ 0.01 |
- Diluted (in dollars per share) | $ 0.00 | $ 0.04 | $ 0.01 |
Putnam | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (loss) related to settlement of indemnity agreement, net of tax | $ 28 |
Goodwill And Other Intangibles (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Segment Reporting Information [Line Items] | |||
Goodwill acquired | $ 783 | $ 472 | |
Goodwill expected to be tax deductible | 387 | ||
Goodwill | 7,889 | 7,241 | $ 6,893 |
Finite lived assets amortization expense | 109 | $ 86 | $ 72 |
Risk and Insurance Services Segment | |||
Segment Reporting Information [Line Items] | |||
Goodwill acquired | 639 | ||
Goodwill | 5,600 | ||
Consulting Segment | |||
Segment Reporting Information [Line Items] | |||
Goodwill acquired | 144 | ||
Goodwill | $ 2,300 |
Goodwill And Other Intangibles (Changes In The Carrying Amount Of Goodwill) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
Goodwill [Roll Forward] | ||||
Balance as of January 1, as reported | $ 7,241 | $ 6,893 | ||
Goodwill acquired | 783 | 472 | ||
Other adjustments | [1] | (135) | (124) | |
Balance at December 31, | $ 7,889 | $ 7,241 | ||
|
Goodwill And Other Intangibles (Amortized Intangible Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | $ 1,457 | $ 1,177 |
Accumulated Amortization | 421 | 485 |
Net Carrying Amount | 1,036 | 692 |
Customer Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 1,281 | 1,000 |
Accumulated Amortization | 347 | 391 |
Net Carrying Amount | 934 | 609 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 176 | 177 |
Accumulated Amortization | 74 | 94 |
Net Carrying Amount | $ 102 | $ 83 |
Goodwill And Other Intangibles (Estimated Future Aggregate Amortization Expense) (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2016 | $ 128 | |
2017 | 120 | |
2018 | 118 | |
2019 | 112 | |
2020 | 105 | |
Subsequent years | 453 | |
Net Carrying Amount | $ 1,036 | $ 692 |
Income Taxes (Taxes on Income) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax Disclosure [Abstract] | |||
U.S., income before income taxes | $ 702 | $ 313 | $ 407 |
Other, income before income taxes | 1,605 | 1,744 | 1,566 |
Total income before income taxes | 2,307 | 2,057 | 1,973 |
U.S. Federal, current | 90 | 80 | 102 |
Other national governments, current | 385 | 369 | 264 |
U.S. state and local, current | 52 | 26 | 45 |
Total current income taxes | 527 | 475 | 411 |
U.S. Federal, deferred | 125 | 27 | 12 |
Other national governments, deferred | 15 | 62 | 149 |
U.S. state and local, deferred | 4 | 22 | 22 |
Total deferred income taxes | 144 | 111 | 183 |
Total income taxes | $ 671 | $ 586 | $ 594 |
Income Taxes (U.S. Federal Statutory Rate) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax Disclosure [Abstract] | |||
U.S. Federal statutory rate | 35.00% | 35.00% | 35.00% |
U.S. state and local income taxes—net of U.S. Federal income tax benefit | 1.60% | 1.70% | 2.10% |
Differences related to non-U.S. operations | (8.00%) | (7.50%) | (6.00%) |
Other | 0.50% | (0.70%) | (1.00%) |
Effective tax rate | 29.10% | 28.50% | 30.10% |
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1, | $ 97 | $ 128 | $ 117 |
Additions, based on tax positions related to current year | 3 | 13 | 16 |
Additions for tax positions of prior years | 22 | 3 | 35 |
Reductions for tax positions of prior years | (10) | (29) | (7) |
Settlements | (20) | (4) | (3) |
Lapses in statutes of limitation | (18) | (14) | (30) |
Balance at December 31, | $ 74 | $ 97 | $ 128 |
Retirement Benefits (Narrative) (Details) £ in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Feb. 26, 2015 |
Mar. 31, 2015
USD ($)
|
Mar. 31, 2014
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
shares
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2015
GBP (£)
shares
|
|
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Market-related plan assets value, recognition period of investment gains and losses | 5 years | |||||||
Shares of common stock representing percentage of plan assets | 5.30% | |||||||
Health care cost trend rate assumed for next fiscal year | 5.30% | |||||||
Ultimate assumed health care cost trend rate | 4.53% | |||||||
Limited partnership interest in private equity fund | $ 13,972 | $ 14,879 | ||||||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||||||||
ESOP invested in MMC common stock | 398 | 453 | ||||||
Pension Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Net credit due to termination of RRA plan | 82 | 26 | $ 215 | |||||
Curtailment loss (gain) | (5) | 65 | 0 | |||||
U.S. Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Plans with benefit obligations in excess of plan assets, projected benefit obligation | 5,700 | 5,900 | ||||||
Accumulated benefit obligation | 5,600 | 5,800 | ||||||
Aggregate fair value of plan assets | 4,200 | 4,500 | ||||||
Plans with benefit obligations in excess of plan assets, aggregate benefit obligation | 5,700 | 5,900 | ||||||
Plans with benefit obligations in excess of plan assets, aggregate fair value of plan assets | 4,200 | 4,500 | ||||||
Net credit due to termination of RRA plan | 141 | 103 | 200 | |||||
Limited partnership interest in private equity fund | 4,160 | 4,516 | 4,279 | |||||
Non-U.S. Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Plans with benefit obligations in excess of plan assets, aggregate benefit obligation | 1,900 | 2,200 | ||||||
Plans with benefit obligations in excess of plan assets, aggregate fair value of plan assets | 1,500 | 1,600 | ||||||
Net credit due to termination of RRA plan | (59) | (77) | 15 | |||||
Curtailment loss (gain) | $ 65 | (5) | 65 | 0 | ||||
Estimated future contributions (less than $1 million for U.S. tax-qualified plan) | 191 | |||||||
Limited partnership interest in private equity fund | 9,826 | 10,410 | 9,351 | |||||
Other Postretirement Benefit Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Net credit due to termination of RRA plan | $ (125) | (118) | 14 | 18 | ||||
Curtailment loss (gain) | 0 | 0 | 0 | |||||
U.S. Postretirement Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Net credit due to termination of RRA plan | (124) | 7 | 10 | |||||
Limited partnership interest in private equity fund | 3 | 18 | 0 | |||||
Foreign Pension and Postretirement Benefit Plan, Defined Benefit | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Plans with benefit obligations in excess of plan assets, projected benefit obligation | 1,700 | 2,100 | ||||||
Accumulated benefit obligation | 1,600 | 2,000 | ||||||
Aggregate fair value of plan assets | 1,300 | 1,600 | ||||||
United States Nonqualified Pension Plan of US Entity, Defined Benefit | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Estimated future contributions (less than $1 million for U.S. tax-qualified plan) | $ 26 | |||||||
United States Pension and Postretirement Benefit Plan of US Entity, Defined Benefit | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of shares the U.S. qualified plan holds contributed by the Company | shares | 4,000,000 | 4,000,000 | ||||||
Health care cost trend rate assumed for next fiscal year | 7.30% | |||||||
Ultimate assumed health care cost trend rate | 4.50% | |||||||
Assumed health care cost trend rate | 5.00% | |||||||
Equity Funds | United States Pension and Postretirement Benefit Plan of US Entity, Defined Benefit | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target asset allocation | 64.00% | |||||||
Actual plan asset allocations | 63.00% | 63.00% | ||||||
Defined benefit plan target allocation percentage of assets equity alternative investments range, minimum | 59.00% | |||||||
Defined benefit plan target allocation percentage of assets equity alternative investments range, maximum | 69.00% | |||||||
Fixed Income Funds | United States Pension and Postretirement Benefit Plan of US Entity, Defined Benefit | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target asset allocation | 36.00% | |||||||
Actual plan asset allocations | 37.00% | 37.00% | ||||||
Defined benefit plan target allocation percentage of assets equity alternative investments range, minimum | 31.00% | |||||||
Defined benefit plan target allocation percentage of assets equity alternative investments range, maximum | 41.00% | |||||||
United Kingdom | ||||||||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||||||||
The cost of defined contribution plans | $ 93 | 65 | 23 | |||||
United Kingdom | Equity Funds | Foreign Pension and Postretirement Benefit Plan, Defined Benefit | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target asset allocation | 48.00% | 48.00% | ||||||
Actual plan asset allocations | 47.00% | 47.00% | ||||||
Defined benefit plan target allocation percentage of assets equity alternative investments range, minimum | 45.00% | |||||||
Defined benefit plan target allocation percentage of assets equity alternative investments range, maximum | 51.00% | |||||||
United Kingdom | Fixed Income Funds | Foreign Pension and Postretirement Benefit Plan, Defined Benefit | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target asset allocation | 52.00% | 52.00% | ||||||
Actual plan asset allocations | 53.00% | 53.00% | ||||||
Defined benefit plan target allocation percentage of assets equity alternative investments range, minimum | 49.00% | |||||||
Defined benefit plan target allocation percentage of assets equity alternative investments range, maximum | 55.00% | |||||||
United States | ||||||||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||||||||
The cost of defined contribution plans | $ 51 | $ 49 | $ 50 | |||||
Geographic Concentration Risk | United Kingdom | Foreign Pension and Postretirement Benefit Plan, Defined Benefit | Non-U.S. Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target asset allocation percentage for non-U.S. plan assets, U.K. Plans | 83.00% | |||||||
Pension Plan Funded Status Guarantee | Non-U.S. Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Maximum exposure under guarantee | £ | £ 450 | |||||||
Guarantor obligation, period | 7 years | |||||||
Scenario, Forecast | Change in Assumptions for Pension Plans [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined benefit plan, change in estimate of interest and service cost | $ 45 |
Retirement Benefits (Weighted Average Actuarial Assumptions Utilized) (Details) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Pension Plan [Member] | ||
Weighted average assumptions: | ||
Discount rate (for expense) | 3.83% | 4.82% |
Expected return on plan assets | 7.23% | 7.52% |
Rate of compensation increase (for expense) | 2.42% | 2.64% |
Discount rate (for benefit obligation) | 4.11% | 3.79% |
Rate of compensation increase (for benefit obligation) | 2.44% | 2.42% |
Non-U.S. Pension Benefits | ||
Weighted average assumptions: | ||
Discount rate (for expense) | 3.49% | 4.55% |
Expected return on plan assets | 6.57% | 6.95% |
Rate of compensation increase (for expense) | 2.67% | 2.99% |
Discount rate (for benefit obligation) | 3.71% | 3.49% |
Rate of compensation increase (for benefit obligation) | 2.72% | 2.67% |
U.S. Pension Benefits | ||
Weighted average assumptions: | ||
Discount rate (for expense) | 4.41% | 5.30% |
Expected return on plan assets | 8.75% | 8.75% |
Rate of compensation increase (for expense) | 2.00% | 2.00% |
Discount rate (for benefit obligation) | 4.74% | 4.30% |
Rate of compensation increase (for benefit obligation) | 2.00% | 2.00% |
Postretirement Benefits [Member] | ||
Weighted average assumptions: | ||
Discount rate (for expense) | 3.87% | 4.92% |
Expected return on plan assets | 0.00% | 0.00% |
Rate of compensation increase (for expense) | 0.00% | 0.00% |
Discount rate (for benefit obligation) | 4.12% | 4.08% |
Rate of compensation increase (for benefit obligation) | 0.00% | 0.00% |
U.S. Postretirement Benefits | ||
Weighted average assumptions: | ||
Discount rate (for expense) | 3.90% | 4.99% |
Expected return on plan assets | 0.00% | 0.00% |
Rate of compensation increase (for expense) | 0.00% | 0.00% |
Discount rate (for benefit obligation) | 4.36% | 4.19% |
Rate of compensation increase (for benefit obligation) | 0.00% | 0.00% |
Non-U.S. Postretirement Benefits | ||
Weighted average assumptions: | ||
Discount rate (for expense) | 3.85% | 4.80% |
Expected return on plan assets | 0.00% | 0.00% |
Rate of compensation increase (for expense) | 0.00% | 0.00% |
Discount rate (for benefit obligation) | 4.00% | 3.85% |
Rate of compensation increase (for benefit obligation) | 0.00% | 0.00% |
Retirement Benefits (Components of the Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2015 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 196 | $ 213 | $ 252 | ||
Interest cost | 587 | 641 | 581 | ||
Expected return on plan assets | (977) | (990) | (911) | ||
Amortization of prior service (credit) cost | (1) | (16) | (22) | ||
Recognized actuarial loss (gain) | 271 | 243 | 315 | ||
Net periodic benefit (credit) cost | 76 | 91 | 215 | ||
Curtailment loss (gain) | 5 | (65) | 0 | ||
Plan termination | 0 | 0 | 0 | ||
Settlement loss | 1 | 0 | 0 | ||
Total (credit) cost | 82 | 26 | 215 | ||
U.S. Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 114 | 91 | 104 | ||
Interest cost | 254 | 253 | 229 | ||
Expected return on plan assets | (373) | (346) | (324) | ||
Amortization of prior service (credit) cost | (7) | (16) | |||
Recognized actuarial loss (gain) | 146 | 112 | 207 | ||
Net periodic benefit (credit) cost | 141 | 103 | 200 | ||
Total (credit) cost | 141 | 103 | 200 | ||
Non-U.S. Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 82 | 122 | 148 | ||
Interest cost | 333 | 388 | 352 | ||
Expected return on plan assets | (604) | (644) | (587) | ||
Amortization of prior service (credit) cost | (1) | (9) | (6) | ||
Recognized actuarial loss (gain) | 125 | 131 | 108 | ||
Net periodic benefit (credit) cost | (65) | (12) | 15 | ||
Curtailment loss (gain) | $ (65) | 5 | (65) | 0 | |
Settlement loss | 1 | 0 | 0 | ||
Total (credit) cost | (59) | (77) | 15 | ||
Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 3 | 4 | 5 | ||
Interest cost | 5 | 11 | 11 | ||
Expected return on plan assets | 0 | 0 | 0 | ||
Amortization of prior service (credit) cost | 3 | 0 | |||
Recognized actuarial loss (gain) | (1) | (1) | 2 | ||
Net periodic benefit (credit) cost | 10 | 14 | 18 | ||
Curtailment loss (gain) | 0 | 0 | 0 | ||
Plan termination | (128) | 0 | |||
Settlement loss | 0 | 0 | 0 | ||
Total (credit) cost | $ (125) | (118) | 14 | 18 | |
U.S. Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 1 | 2 | 3 | ||
Interest cost | 2 | 7 | 7 | ||
Expected return on plan assets | 0 | 0 | 0 | ||
Amortization of prior service (credit) cost | 3 | 0 | |||
Recognized actuarial loss (gain) | (2) | (2) | |||
Net periodic benefit (credit) cost | 4 | 7 | 10 | ||
Plan termination | (128) | ||||
Total (credit) cost | (124) | 7 | 10 | ||
Non-U.S. Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 2 | 2 | 2 | ||
Interest cost | 3 | 4 | 4 | ||
Expected return on plan assets | 0 | 0 | 0 | ||
Amortization of prior service (credit) cost | 0 | 0 | |||
Recognized actuarial loss (gain) | 1 | 1 | 2 | ||
Net periodic benefit (credit) cost | 6 | 7 | 8 | ||
Curtailment loss (gain) | 0 | 0 | 0 | ||
Settlement loss | 0 | 0 | 0 | ||
Total (credit) cost | $ 6 | $ 7 | $ 8 |
Retirement Benefits (Effects of One Percentage Point Change in Assumed Health Care Cost Trend Rates) (Details) - Foreign Pension and Postretirement Benefit Plan, Defined Benefit $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on total of service and interest cost components 1 Percentage Point Increase | $ 1 |
Effect on total of service and interest cost components 1 Percentage Point Decrease | (1) |
Effect on postretirement benefit obligation 1 Percentage Point Increase | 7 |
Effect on postretirement benefit obligation 1 Percentage Point Decrease | $ (6) |
Retirement Benefits (Schedules Providing Information Concerning MMC's Defined Benefit Pension Plans and Postretirement Benefit Plans) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 14,879 | ||
Fair value of plan assets at end of year | 13,972 | $ 14,879 | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||
Noncurrent assets | 1,159 | 967 | |
Noncurrent liabilities | (2,058) | (2,244) | |
U.S. Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 5,924 | 4,827 | |
Service cost | 114 | 91 | $ 104 |
Interest cost | 254 | 253 | 229 |
Employee contributions | 0 | 0 | |
Plan amendments | 0 | 0 | |
Plan combination | 0 | 0 | |
Plan termination | 0 | 0 | |
Actuarial (gain) loss | (392) | 955 | |
Medicare Part D subsidy | 0 | 0 | |
Benefits paid | (215) | (202) | |
Benefit obligation at end of year | 5,685 | 5,924 | 4,827 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 4,516 | 4,279 | |
Actual return on plan assets | (170) | 414 | |
Employer/Company contributions | 29 | 25 | |
Employee contributions | 0 | 0 | |
Benefits paid | (215) | (202) | |
Other | 0 | 0 | |
Fair value of plan assets at end of year | 4,160 | 4,516 | 4,279 |
Funded status | (1,525) | (1,408) | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||
Current liabilities | (26) | (25) | |
Noncurrent liabilities | (1,499) | (1,383) | |
Net asset (liability) recognized in consolidated balance sheet, December 31 | (1,525) | (1,408) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract] | |||
Prior service credit | 0 | 0 | |
Net actuarial (loss) gain | (1,754) | (1,749) | |
Total recognized accumulated other comprehensive (loss) income, December 31 | (1,754) | (1,749) | |
Cumulative employer contributions in excess (deficient) of net periodic cost | 229 | 341 | |
Net asset (liability) recognized in consolidated balance sheet, December 31 | (1,525) | (1,408) | |
Accumulated benefit obligation at December 31 | 5,600 | 5,825 | |
U.S. Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 177 | 158 | |
Service cost | 1 | 2 | 3 |
Interest cost | 2 | 7 | 7 |
Employee contributions | 3 | 13 | |
Plan amendments | 0 | (4) | |
Plan combination | 0 | 0 | |
Plan termination | (128) | 0 | |
Actuarial (gain) loss | (5) | 21 | |
Medicare Part D subsidy | 0 | 1 | |
Benefits paid | (10) | (21) | |
Benefit obligation at end of year | 40 | 177 | 158 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 18 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer/Company contributions | 4 | 13 | |
Employee contributions | 3 | 13 | |
Benefits paid | (10) | (21) | |
Other | (12) | 12 | |
Fair value of plan assets at end of year | 3 | 18 | 0 |
Funded status | (37) | (159) | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||
Current liabilities | (2) | (2) | |
Noncurrent liabilities | (35) | (157) | |
Net asset (liability) recognized in consolidated balance sheet, December 31 | (37) | (159) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract] | |||
Prior service credit | (7) | 4 | |
Net actuarial (loss) gain | 13 | 2 | |
Total recognized accumulated other comprehensive (loss) income, December 31 | 6 | 6 | |
Cumulative employer contributions in excess (deficient) of net periodic cost | (43) | (165) | |
Net asset (liability) recognized in consolidated balance sheet, December 31 | (37) | (159) | |
Accumulated benefit obligation at December 31 | 0 | 0 | |
Non-U.S. Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 10,018 | 8,711 | |
Service cost | 82 | 122 | 148 |
Interest cost | 333 | 388 | 352 |
Employee contributions | 8 | 10 | |
Plan amendments | (5) | 13 | |
Actuarial (gain) loss | (432) | 1,619 | |
Effect of settlement | (12) | (11) | |
Benefits paid | (337) | (311) | |
Foreign currency charges | (632) | (585) | |
Other | 45 | 62 | |
Benefit obligation at end of year | 9,076 | 10,018 | 8,711 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 10,410 | 9,351 | |
Actual return on plan assets | 187 | 1,756 | |
Effect of settlement | (12) | (11) | |
Effect of curtailment | 8 | 0 | |
Employer/Company contributions | 166 | 156 | |
Employee contributions | 8 | 10 | |
Benefits paid | (337) | (311) | |
Foreign currency changes | (620) | (578) | |
Other | 24 | 37 | |
Fair value of plan assets at end of year | 9,826 | 10,410 | 9,351 |
Funded status | 750 | 392 | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||
Noncurrent assets | 1,144 | 967 | |
Current liabilities | (5) | (6) | |
Noncurrent liabilities | (389) | (569) | |
Net asset (liability) recognized in consolidated balance sheet, December 31 | 750 | 392 | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract] | |||
Prior service credit | (3) | (2) | |
Net actuarial (loss) gain | (2,887) | (3,215) | |
Total recognized accumulated other comprehensive (loss) income, December 31 | (2,890) | (3,217) | |
Cumulative employer contributions in excess (deficient) of net periodic cost | 3,640 | 3,609 | |
Net asset (liability) recognized in consolidated balance sheet, December 31 | 750 | 392 | |
Accumulated benefit obligation at December 31 | 8,830 | 9,731 | |
Non-U.S. Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 93 | 97 | |
Service cost | 2 | 2 | 2 |
Interest cost | 3 | 4 | 4 |
Employee contributions | 0 | 0 | |
Plan amendments | 0 | 0 | |
Actuarial (gain) loss | (6) | (1) | |
Effect of settlement | 0 | 0 | |
Benefits paid | (3) | (3) | |
Foreign currency charges | (10) | (6) | |
Other | 0 | 0 | |
Benefit obligation at end of year | 79 | 93 | 97 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Effect of settlement | 0 | 0 | |
Effect of curtailment | 0 | 0 | |
Employer/Company contributions | 3 | 3 | |
Employee contributions | 0 | 0 | |
Benefits paid | (3) | (3) | |
Foreign currency changes | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status | (79) | (93) | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (3) | (4) | |
Noncurrent liabilities | (76) | (89) | |
Net asset (liability) recognized in consolidated balance sheet, December 31 | (79) | (93) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract] | |||
Prior service credit | 0 | 0 | |
Net actuarial (loss) gain | (6) | (14) | |
Total recognized accumulated other comprehensive (loss) income, December 31 | (6) | (14) | |
Cumulative employer contributions in excess (deficient) of net periodic cost | (73) | (79) | |
Net asset (liability) recognized in consolidated balance sheet, December 31 | (79) | (93) | |
Accumulated benefit obligation at December 31 | $ 0 | $ 0 |
Retirement Benefits (Reconciliation of Prior Service Credit) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Effect of curtailment | $ 3 | $ 65 | |
Pension Plan [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Plan termination | 0 | 0 | $ 0 |
Other Postretirement Benefit Plan [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Plan termination | (128) | 0 | |
U.S. Postretirement Benefits | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Plan termination | (128) | ||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) | U.S. Pension Benefits | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 0 | 7 | |
Recognized as component of net periodic benefit cost | 0 | (7) | |
Plan termination | 0 | 0 | |
Plan amendments | 0 | 0 | |
Ending balance, December 31 | 0 | 0 | 7 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) | Non-U.S. Pension Benefits | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (2) | 85 | |
Recognized as component of net periodic benefit cost | (1) | (9) | |
Effect of curtailment | (5) | (65) | |
Plan amendments | 5 | (13) | |
Exchange rate adjustments | 0 | 0 | |
Ending balance, December 31 | (3) | (2) | 85 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) | U.S. Postretirement Benefits | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 4 | 0 | |
Recognized as component of net periodic benefit cost | 3 | 0 | |
Plan termination | (14) | 0 | |
Plan amendments | 0 | 4 | |
Ending balance, December 31 | (7) | 4 | 0 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) | Non-U.S. Postretirement Benefits | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Recognized as component of net periodic benefit cost | 0 | 0 | |
Effect of curtailment | 0 | 0 | |
Plan amendments | 0 | 0 | |
Exchange rate adjustments | 0 | 0 | |
Ending balance, December 31 | $ 0 | $ 0 | $ 0 |
Retirement Benefits (Reconciliation of Net Actuarial Loss) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
U.S. Pension Benefits | ||
Reconciliation of unrecognized net actuarial gain loss [Roll Forward] | ||
Defined Benefit Plan, Fair Value Of Plan Assets, Other Changes | $ 0 | $ 0 |
Non-U.S. Pension Benefits | ||
Reconciliation of unrecognized net actuarial gain loss [Roll Forward] | ||
Defined Benefit Plan, Fair Value Of Plan Assets, Other Changes | (24) | (37) |
U.S. Postretirement Benefits | ||
Reconciliation of unrecognized net actuarial gain loss [Roll Forward] | ||
Defined Benefit Plan, Fair Value Of Plan Assets, Other Changes | 12 | (12) |
Non-U.S. Postretirement Benefits | ||
Reconciliation of unrecognized net actuarial gain loss [Roll Forward] | ||
Defined Benefit Plan, Fair Value Of Plan Assets, Other Changes | 0 | 0 |
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) | U.S. Pension Benefits | ||
Reconciliation of unrecognized net actuarial gain loss [Roll Forward] | ||
Beginning balance | (1,749) | (974) |
Recognized as component of net periodic benefit cost | 146 | 112 |
Defined Benefit Plan, Fair Value Of Plan Assets, Other Changes | 0 | 0 |
Liability experience | 392 | (955) |
Asset experience | (543) | 68 |
Total amount recognized as change in plan assets and benefit obligations | (151) | (887) |
Ending balance, December 31 | (1,754) | (1,749) |
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) | Non-U.S. Pension Benefits | ||
Reconciliation of unrecognized net actuarial gain loss [Roll Forward] | ||
Beginning balance | (3,215) | (3,010) |
Recognized as component of net periodic benefit cost | 125 | 131 |
Effect of settlement | 2 | 0 |
Liability experience | 432 | (1,619) |
Asset experience | (417) | 1,112 |
Plan amendments | (20) | (14) |
Total amount recognized as change in plan assets and benefit obligations | (5) | (521) |
Exchange rate adjustments | 206 | 185 |
Ending balance, December 31 | (2,887) | (3,215) |
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) | U.S. Postretirement Benefits | ||
Reconciliation of unrecognized net actuarial gain loss [Roll Forward] | ||
Beginning balance | 2 | 13 |
Recognized as component of net periodic benefit cost | (2) | (2) |
Defined Benefit Plan, Fair Value Of Plan Assets, Other Changes | 8 | 0 |
Liability experience | 5 | (21) |
Asset experience | 0 | 12 |
Total amount recognized as change in plan assets and benefit obligations | 5 | (9) |
Ending balance, December 31 | 13 | 2 |
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) | Non-U.S. Postretirement Benefits | ||
Reconciliation of unrecognized net actuarial gain loss [Roll Forward] | ||
Beginning balance | (14) | (16) |
Recognized as component of net periodic benefit cost | 1 | 1 |
Effect of settlement | 0 | 0 |
Liability experience | 6 | 1 |
Asset experience | 0 | 0 |
Plan amendments | 0 | 0 |
Total amount recognized as change in plan assets and benefit obligations | 6 | 1 |
Exchange rate adjustments | 1 | 0 |
Ending balance, December 31 | $ (6) | $ (14) |
Retirement Benefits (Schedule of Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ 146 | $ 885 | $ (696) |
Non-U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | (407) | 201 | (276) |
U.S. Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | (138) | 14 | (5) |
Non-U.S. Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ (2) | $ 5 | $ (2) |
Retirement Benefits (Schedule of Estimated Amounts That Will Be Amortized from Accumulated Other Comprehensive in the Next Fiscal Year) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
U.S. Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | $ 0 |
Net actuarial loss | 71 |
Projected cost (credit) | 71 |
Non-U.S. Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | 1 |
Net actuarial loss | (100) |
Projected cost (credit) | (99) |
Non-U.S. Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | 0 |
Net actuarial loss | 0 |
Projected cost (credit) | 0 |
U.S. Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | (4) |
Net actuarial loss | 2 |
Projected cost (credit) | $ (2) |
Retirement Benefits (Schedule of Estimated Future Benefit Payments for Pension and Postretirement Benefits) (Details) $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
U.S. Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2016 | $ 231 |
2017 | 247 |
2018 | 264 |
2019 | 274 |
2020 | 286 |
2021-2025 | 1,586 |
Non-U.S. Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2016 | 260 |
2017 | 274 |
2018 | 287 |
2019 | 299 |
2020 | 314 |
2021-2025 | 1,837 |
U.S. Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2016 | 4 |
2017 | 4 |
2018 | 4 |
2019 | 4 |
2020 | 4 |
2021-2025 | 16 |
Non-U.S. Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2016 | 3 |
2017 | 4 |
2018 | 4 |
2019 | 4 |
2020 | 4 |
2021-2025 | $ 19 |
Retirement Benefits (Summary of the U.S. and Non-U.S. Plan Investments Measured At Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 13,972 | $ 14,879 |
Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,576 | 3,228 |
Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9,722 | 10,122 |
Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,674 | 1,529 |
Common/Collective trusts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7,036 | 7,122 |
Common/Collective trusts | Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 175 | 172 |
Common/Collective trusts | Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6,591 | 6,766 |
Common/Collective trusts | Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 270 | 184 |
Corporate Obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,652 | 2,941 |
Corporate Obligations | Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Corporate Obligations | Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,651 | 2,938 |
Corporate Obligations | Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | 3 |
Corporate stocks | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,852 | 2,094 |
Corporate stocks | Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,844 | 2,087 |
Corporate stocks | Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6 | 6 |
Corporate stocks | Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 1 |
Private equity/partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 710 | 727 |
Private equity/partnerships | Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Private equity/partnerships | Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Private equity/partnerships | Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 710 | 727 |
Government Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 425 | 371 |
Government Securities | Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10 | 0 |
Government Securities | Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 415 | 371 |
Government Securities | Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 442 | 381 |
Real Estate | Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real Estate | Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8 | 6 |
Real Estate | Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 434 | 375 |
Short-term investment funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 316 | 736 |
Short-term investment funds | Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 312 | 724 |
Short-term investment funds | Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4 | 12 |
Short-term investment funds | Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Company common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 222 | 229 |
Company common stock | Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 222 | 229 |
Company common stock | Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Company common stock | Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 317 | 278 |
Other Investments | Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 13 | 16 |
Other Investments | Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 47 | 23 |
Other Investments | Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 257 | $ 239 |
Retirement Benefits (Summary of changes in the fair value of the plans’ Level 3 assets) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Asset Value, Beginning | $ 1,529 | $ 1,507 |
Purchases | 469 | 279 |
Sales | (162) | (253) |
Unrealized Gain/(Loss) | (222) | (86) |
Realized Gain/(Loss) | 160 | 153 |
Exchange Rate Impact | (98) | (75) |
Transfers in/(out) and Other | (2) | 4 |
Fair Value, Asset Value, Ending | 1,674 | 1,529 |
Private equity/partnerships | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Asset Value, Beginning | 727 | 799 |
Purchases | 223 | 158 |
Sales | (121) | (185) |
Unrealized Gain/(Loss) | (263) | (173) |
Realized Gain/(Loss) | 159 | 137 |
Exchange Rate Impact | (15) | (12) |
Transfers in/(out) and Other | 0 | 3 |
Fair Value, Asset Value, Ending | 710 | 727 |
Real Estate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Asset Value, Beginning | 375 | 312 |
Purchases | 50 | 97 |
Sales | (1) | (50) |
Unrealized Gain/(Loss) | 32 | 19 |
Realized Gain/(Loss) | 1 | 16 |
Exchange Rate Impact | (23) | (19) |
Transfers in/(out) and Other | 0 | 0 |
Fair Value, Asset Value, Ending | 434 | 375 |
Other Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Asset Value, Beginning | 239 | 238 |
Purchases | 47 | 21 |
Sales | (13) | (16) |
Unrealized Gain/(Loss) | 14 | 18 |
Realized Gain/(Loss) | 0 | 0 |
Exchange Rate Impact | (30) | (28) |
Transfers in/(out) and Other | 0 | 6 |
Fair Value, Asset Value, Ending | 257 | 239 |
Common/Collective trusts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Asset Value, Beginning | 184 | 151 |
Purchases | 149 | 0 |
Sales | (27) | (1) |
Unrealized Gain/(Loss) | (6) | 50 |
Realized Gain/(Loss) | 0 | 0 |
Exchange Rate Impact | (30) | (16) |
Transfers in/(out) and Other | 0 | 0 |
Fair Value, Asset Value, Ending | 270 | 184 |
Corporate stocks | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Asset Value, Beginning | 1 | 1 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Unrealized Gain/(Loss) | 1 | 0 |
Realized Gain/(Loss) | 0 | 0 |
Exchange Rate Impact | 0 | 0 |
Transfers in/(out) and Other | 0 | 0 |
Fair Value, Asset Value, Ending | 2 | 1 |
Corporate Obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Asset Value, Beginning | 3 | 4 |
Purchases | 0 | 3 |
Sales | 0 | (1) |
Unrealized Gain/(Loss) | 0 | 0 |
Realized Gain/(Loss) | 0 | 0 |
Exchange Rate Impact | 0 | 0 |
Transfers in/(out) and Other | (2) | (3) |
Fair Value, Asset Value, Ending | 1 | 3 |
Government Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Asset Value, Beginning | $ 0 | 2 |
Purchases | 0 | |
Sales | 0 | |
Unrealized Gain/(Loss) | 0 | |
Realized Gain/(Loss) | 0 | |
Exchange Rate Impact | 0 | |
Transfers in/(out) and Other | (2) | |
Fair Value, Asset Value, Ending | $ 0 |
Stock Benefit Plans (Narrative) (Details) |
1 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
May. 31, 2007
shares
|
Jul. 31, 2002
shares
|
Dec. 31, 2015
USD ($)
share_purchase_times
$ / shares
shares
|
Dec. 31, 2014
USD ($)
$ / shares
|
Dec. 31, 2013
USD ($)
$ / shares
|
May. 19, 2011
equity_incentive_plan
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Average volatility periods ending on fifteen anniversaries prior to valuation date | 15 years | |||||
Options, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 11.34 | $ 9.66 | $ 6.21 | |||
Total intrinsic value of options exercised | $ | $ 124,600,000 | $ 174,300,000 | $ 198,100,000 | |||
Cash received from the exercise of stock options | $ | $ 134,700,000 | 178,100,000 | 281,100,000 | |||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 0.00 | |||||
Total fair value of deferred stock units | $ | $ 400,000 | 0 | 1,100,000 | |||
Restricted Stock | Certain grants in 2005 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, years | 3 years | |||||
Restricted Stock Units And Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, years | 3 years | |||||
Total fair value of deferred stock units | $ | $ 114,300,000 | $ 165,300,000 | $ 205,500,000 | |||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 56.81 | $ 48.16 | $ 36.70 | |||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Daily closing price observation period | 10 years | |||||
Average volatility periods ending on fifteen anniversaries prior to valuation date | 10 years | |||||
Unrecognized compensation cost related to option awards | $ | $ 11,800,000 | |||||
Weighted-average period over which that cost is expected to be recognized, years | 1 year 1 month 28 days | |||||
Restricted Stock Units, Restricted Stock and Performance Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted-average period over which that cost is expected to be recognized, years | 1 year 1 month 6 days | |||||
Unrecognized compensation cost | $ | $ 94,500,000 | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance-based restricted stock unit payable range minimum | 0.00% | |||||
Performance-based restricted stock unit payable range maximum | 200.00% | |||||
Performance period | 3 years | |||||
Weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 56.84 | $ 48.00 | $ 36.54 | |||
Shares distributable in period | 746,370 | |||||
Performance Shares | PSUs Awarded in 2012 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Target payout percentage | 200.00% | |||||
Performance Shares | PSUs Awarded in 2013 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Target payout percentage | 200.00% | |||||
Performance Shares | PSUs Awarded in 2014 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Target payout percentage | 167.00% | |||||
Award Plans 2000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of previous equity plans replaced | equity_incentive_plan | 2 | |||||
Incentive and Stock Award Plan 2011 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards authorized (not more than 23.2 million shares for the 2011 Plan and 35.6 million shares for the 1999 Plan) | 23,200,000 | |||||
Incentive and Stock Award Plan 2011 | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options vesting percentage | 25.00% | |||||
Contractual term of stock option awards | 10 years | |||||
Employee Stock Purchase Plan 1999 | Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards authorized (not more than 23.2 million shares for the 2011 Plan and 35.6 million shares for the 1999 Plan) | 35,600,000 | |||||
Number of share purchase times per plan year | share_purchase_times | 4 | |||||
Stock option price percent | 95.00% | |||||
Reduction in the shares available | 10,000,000 | |||||
Shares purchased by employees | 507,411 | |||||
Shares available for issuance under the plan | 2,271,784 | |||||
International Plan | Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards authorized (not more than 23.2 million shares for the 2011 Plan and 35.6 million shares for the 1999 Plan) | 12,000,000 | |||||
Shares purchased by employees | 145,422 | |||||
Shares available for issuance under the plan | 2,748,564 | |||||
Shares due to shareholder action | 4,000,000 | 5,000,000 |
Stock Benefit Plans (Black-Scholes Option Pricing Valuation Model For Options) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, Range Minimum | 0.00% | 1.03% | |
Risk-free interest rate | 1.78% | ||
Risk-free interest rate, Range Maximum | 1.88% | 1.30% | |
Expected life (in years) | 6 years | 6 years | 6 years |
Expected volatility, Range Minimum | 0.00% | 23.60% | |
Expected volatility | 23.75% | ||
Expected volatility, Range Maximum | 24.20% | 24.10% | |
Expected dividend yield | 1.97% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 2.48% | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 2.08% | 2.54% |
Stock Benefit Plans (The Status Of Stock Option Awards) (Details) $ / shares in Units, $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
$ / shares
shares
| |
Options, Outstanding [Roll Forward] | |
Number of options outstanding at January 1, 2015 (in shares) | shares | 17,995,082 |
Number of Options Granted (in shares) | shares | 1,574,706 |
Number of Options Exercised (in shares) | shares | (4,607,079) |
Number of Options Forfeited (in shares) | shares | (131,126) |
Number of options Expired (in shares) | shares | (54,779) |
Number of options outstanding at December, 31 2015 (in shares) | shares | 14,776,804 |
Options vested or expected to vest at December 31, 2015 (in shares) | shares | 14,584,291 |
Options exercisable at December 31, 2015 (in shares) | shares | 10,104,569 |
Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Weighted Average Exercise Price per option at January 1, 2015 | $ / shares | $ 30.97 |
Weighted Average Exercise Price per option Granted | $ / shares | 56.84 |
Weighted Average Exercise Price per option Exercised | $ / shares | 29.24 |
Weighted Average Exercise Price per Option Forfeited | $ / shares | 46.43 |
Weighted Average Exercise Price per Option Expired | $ / shares | 30.45 |
Weighted Average Exercise Price per option at December 31, 2015 | $ / shares | 34.14 |
Weighted Average Exercise Price per option expected to vest | $ / shares | 34.04 |
Weighted Average Exercise Price per option exercisable at closing | $ / shares | $ 28.88 |
Weighted Average Remaining Contractual Term at closing, years | 5 years 4 months 24 days |
Weighted Average Remaining Contractual Term expected to vest, years | 5 years 4 months 24 days |
Weighted Average Remaining Contractual Term exercisable at closing, years | 4 years 3 months 18 days |
Aggregate Intrinsic Value at closing | $ | $ 328,225 |
Aggregate Intrinsic Value expected to vest | $ | 325,388 |
Aggregate Intrinsic Value exercisable at closing | $ | $ 276,975 |
Stock Benefit Plans (Summary Of The Status Of Restricted Stock Unit And Performance Unit Awards) (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Restricted Stock Units (RSUs) | |||
Restricted Stock Units and Performance Stock Units [Roll Forward] | |||
Non-vested balance at January 1, 2015 (in shares) | 2,097,730 | ||
Granted (in shares) | 1,737,354 | ||
Vested (in shares) | (1,264,076) | ||
Forfeited (in shares) | (111,715) | ||
Non-vested balance at December 31, 2015 (in shares) | 2,459,293 | 2,097,730 | |
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Non-vested balance at January 1, 2015 (in dollars per share) | $ 38.74 | ||
Granted (in dollars per share) | 56.81 | $ 48.16 | $ 36.70 |
Vested (in dollars per share) | 35.56 | ||
Forfeited (in dollars per share) | 52.67 | ||
Non-vested balance at December 31, 2015 (in dollars per share) | $ 52.51 | $ 38.74 | |
Performance Shares | |||
Restricted Stock Units and Performance Stock Units [Roll Forward] | |||
Non-vested balance at January 1, 2015 (in shares) | 868,008 | ||
Granted (in shares) | 210,829 | ||
Vested (in shares) | (373,449) | ||
Forfeited (in shares) | (27,223) | ||
Non-vested balance at December 31, 2015 (in shares) | 678,165 | 868,008 | |
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Non-vested balance at January 1, 2015 (in dollars per share) | $ 37.56 | ||
Granted (in dollars per share) | 56.84 | $ 48.00 | $ 36.54 |
Vested (in dollars per share) | 31.99 | ||
Forfeited (in dollars per share) | 46.91 | ||
Non-vested balance at December 31, 2015 (in dollars per share) | $ 46.25 | $ 37.56 |
Stock Benefit Plans (Status Of Restricted Stock Awards) (Details) - Restricted Stock - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Grants In Period, Fair Value | $ 400,000 | $ 0 | $ 1,100,000 |
Restricted Stock [Roll Forward] | |||
Non-vested balance at January 1, 2015 (in shares) | 7,200 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | (7,200) | ||
Forfeited (in shares) | 0 | ||
Non-vested balance at December 31, 2015 (in shares) | 0 | 7,200 | |
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Non-vested balance at January 1, 2015 (in dollars per share) | $ 46.14 | ||
Granted (in dollars per share) | 0.00 | ||
Vested (in dollars per share) | 46.14 | ||
Forfeited (in dollars per share) | 0.00 | ||
Non-vested balance at December 31, 2015 (in dollars per share) | $ 0.00 | $ 46.14 |
Fair Value Measurements (Narrative) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets transferred between Level 1 and Level 2 | $ 0 | |
Adjustments to acquisition related contingent consideration liability | 45,000,000 | |
Increase in fair value of contingent consideration due to 5% increase in projections | 24,000,000 | |
Decrease in fair value of contingent consideration due to 5% decrease in projections | 37,000,000 | |
Equity Method Investments | $ 347,000,000 | $ 388,000,000 |
Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Revenue target period (in years) | 2 years | 2 years |
Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Revenue target period (in years) | 4 years | 4 years |
Private Equity Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Method Investments | $ 76,000,000 | $ 61,000,000 |
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||||
---|---|---|---|---|---|---|---|---|---|
Financial instruments owned: | |||||||||
Total assets measured at fair value | $ 282 | $ 257 | |||||||
Fiduciary Assets: | |||||||||
Fiduciary assets | 48 | 57 | |||||||
Liabilities: | |||||||||
Total liabilities measured at fair value | 309 | 207 | |||||||
Identical Assets (Level 1) | |||||||||
Financial instruments owned: | |||||||||
Total assets measured at fair value | 282 | 257 | |||||||
Fiduciary Assets: | |||||||||
Fiduciary assets | 48 | 57 | |||||||
Liabilities: | |||||||||
Total liabilities measured at fair value | 0 | 0 | |||||||
Observable Inputs (Level 2) | |||||||||
Financial instruments owned: | |||||||||
Total assets measured at fair value | 0 | 0 | |||||||
Fiduciary Assets: | |||||||||
Fiduciary assets | 0 | 0 | |||||||
Liabilities: | |||||||||
Total liabilities measured at fair value | 0 | 0 | |||||||
Unobservable Inputs (Level 3) | |||||||||
Financial instruments owned: | |||||||||
Total assets measured at fair value | 0 | 0 | |||||||
Fiduciary Assets: | |||||||||
Fiduciary assets | 0 | 0 | |||||||
Liabilities: | |||||||||
Total liabilities measured at fair value | 309 | 207 | |||||||
Other Assets | |||||||||
Financial instruments owned: | |||||||||
Mutual funds | [1] | 142 | 150 | ||||||
Other Assets | Identical Assets (Level 1) | |||||||||
Financial instruments owned: | |||||||||
Mutual funds | [1] | 142 | 150 | ||||||
Other Assets | Observable Inputs (Level 2) | |||||||||
Financial instruments owned: | |||||||||
Mutual funds | 0 | 0 | |||||||
Other Assets | Unobservable Inputs (Level 3) | |||||||||
Financial instruments owned: | |||||||||
Mutual funds | 0 | 0 | |||||||
Cash and Cash Equivalents | |||||||||
Financial instruments owned: | |||||||||
Money market funds | [2] | 140 | 107 | ||||||
Cash and Cash Equivalents | Identical Assets (Level 1) | |||||||||
Financial instruments owned: | |||||||||
Money market funds | [2] | 140 | 107 | ||||||
Cash and Cash Equivalents | Observable Inputs (Level 2) | |||||||||
Financial instruments owned: | |||||||||
Money market funds | 0 | 0 | |||||||
Cash and Cash Equivalents | Unobservable Inputs (Level 3) | |||||||||
Financial instruments owned: | |||||||||
Money market funds | 0 | 0 | |||||||
Accounts Payable and Accrued Liabilities and Other Liabilities | |||||||||
Liabilities: | |||||||||
Contingent purchase consideration liability | [3] | 309 | 207 | ||||||
Accounts Payable and Accrued Liabilities and Other Liabilities | Identical Assets (Level 1) | |||||||||
Liabilities: | |||||||||
Contingent purchase consideration liability | 0 | 0 | |||||||
Accounts Payable and Accrued Liabilities and Other Liabilities | Observable Inputs (Level 2) | |||||||||
Liabilities: | |||||||||
Contingent purchase consideration liability | 0 | 0 | |||||||
Accounts Payable and Accrued Liabilities and Other Liabilities | Unobservable Inputs (Level 3) | |||||||||
Liabilities: | |||||||||
Contingent purchase consideration liability | [3] | 309 | 207 | ||||||
Money Market Funds | |||||||||
Fiduciary Assets: | |||||||||
Fiduciary assets | 48 | 57 | |||||||
Money Market Funds | Identical Assets (Level 1) | |||||||||
Fiduciary Assets: | |||||||||
Fiduciary assets | 48 | 57 | |||||||
Money Market Funds | Observable Inputs (Level 2) | |||||||||
Fiduciary Assets: | |||||||||
Fiduciary assets | 0 | 0 | |||||||
Money Market Funds | Unobservable Inputs (Level 3) | |||||||||
Fiduciary Assets: | |||||||||
Fiduciary assets | $ 0 | $ 0 | |||||||
|
Fair Value Measurements (Changes In Fair Value Of Level 3 Liabilities Representing Acquisition Related Contingent Consideration) (Details) - Contingent Consideration - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at January 1, | $ 207 | $ 104 |
Additions | 104 | 114 |
Payments | (47) | (42) |
Revaluation Impact | 45 | 31 |
Balance at December 31, | $ 309 | $ 207 |
Fair Value Measurements - Equity Method Investments, Summarized Financial Information (Details) shares in Millions, $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
shares
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2015
ZAR / shares
|
Feb. 24, 2015
USD ($)
|
Jul. 24, 2014
ZAR / shares
|
Jun. 30, 2014 |
|
Schedule of Equity Method Investments [Line Items] | ||||||
Total consideration | $ 1,200 | $ 772 | ||||
Carrying value of equity method investments | 347 | 388 | ||||
Alexander Forbes Group Holdings Limited | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying value of equity method investments | $ 230 | |||||
Equity investment shares owned by the Company | shares | 443 | |||||
Share price | ZAR / shares | ZAR 5.78 | |||||
Market value of equity method investment | $ 166 | |||||
Mercer Consulting Group | Benefitfocus | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of interest acquired | 9.90% | |||||
Business acquisition, consideration to be transferred, planned acquisition | $ 75 | |||||
Common stock, value, outstanding | 102 | |||||
Mercer Consulting Group | Alexander Forbes Group Holdings Limited | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of interest acquired | 34.00% | |||||
Share price | ZAR / shares | ZAR 7.50 | |||||
Value of carrying amount that exceeds share in equity method investment | $ 146 | |||||
Other Assets | Mercer Consulting Group | Alexander Forbes Group Holdings Limited | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Total consideration | $ 300 | |||||
Maximum | Alexander Forbes Group Holdings Limited | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Share price | ZAR / shares | 10.38 | |||||
Minimum | Alexander Forbes Group Holdings Limited | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Share price | ZAR / shares | ZAR 5.32 |
Fair Value Measurements (Schedule of Equity Method Investments) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
Sep. 30, 2013 |
|
Schedule of Equity Method Investments [Line Items] | |||
Revenue | $ 1,018 | $ 239 | $ 148 |
Net investment income (a) | 1,620 | 161 | 88 |
Net income | 196 | 216 | $ 135 |
Total assets | 21,101 | 25,497 | |
Total liabilities | 19,348 | 24,209 | |
Non-controlling interests | 12 | $ 14 | |
Alexander Forbes Group Holdings Limited | |||
Schedule of Equity Method Investments [Line Items] | |||
Net investment income (a) | $ 1,500 |
Long-Term Commitments (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Net rental costs | $ 381 | $ 393 | $ 403 |
Rentals from subleases | $ 14 | $ 12 | $ 13 |
Office Building | Lease Concentration Risk [Member] | Lease Obligations | |||
Concentration Risk [Line Items] | |||
Lease obligations for office space | 98.00% |
Long-term Commitments (Operating Lease Agreements) (Details) $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Gross Rental Commitments | |
2016, Gross Rental Commitments | $ 372 |
2017, Gross Rental Commitments | 341 |
2018, Gross Rental Commitments | 311 |
2019, Gross Rental Commitments | 259 |
2020, Gross Rental Commitments | 224 |
Subsequent years, Gross Rental Commitments | 847 |
Rental from Subleases | |
2016, Rentals from Subleases | 47 |
2017, Rentals from Subleases | 44 |
2018, Rentals from Subleases | 42 |
2019, Rentals from Subleases | 35 |
2020, Rentals from Subleases | 32 |
Subsequent years, Rentals from Subleases | 5 |
Net Rental Commitments | |
2016, Net Rental Commitments | 325 |
2017, Net Rental Commitments | 297 |
2018, Net Rental Commitments | 269 |
2019, Net Rental Commitments | 224 |
2020, Net Rental Commitments | 192 |
Subsequent years, Net Rental Commitments | $ 842 |
Long-term Commitments (Future Minimum Commitments) (Details) $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $ 172 |
2017 | 64 |
2018 | 37 |
Subsequent years | 11 |
Total | $ 284 |
Debt (Narrative) (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 24, 2015 |
Sep. 30, 2014 |
May. 31, 2014 |
Mar. 28, 2014 |
Sep. 30, 2015 |
Oct. 31, 2014 |
May. 31, 2014 |
Dec. 31, 2012 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Mar. 31, 2015 |
|
Debt Instrument [Line Items] | |||||||||||||
Repayments of long-term debt | $ 61,000,000 | $ 331,000,000 | $ 260,000,000 | ||||||||||
Cost for early redemption | $ 0 | 137,000,000 | $ 24,000,000 | ||||||||||
3.75% Senior Debt Obligations Due 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, amount | $ 600,000,000 | ||||||||||||
Interest rate | 3.75% | 3.75% | |||||||||||
Debt instrument, term | 10 years 6 months | ||||||||||||
2.35% Senior Debt Obligations Due 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, amount | $ 500,000,000 | ||||||||||||
Interest rate | 2.35% | 2.35% | |||||||||||
2.35% Senior Debt Obligations Due 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, amount | $ 300,000,000 | ||||||||||||
Interest rate | 2.35% | 2.35% | |||||||||||
Debt instrument, term | 5 years | ||||||||||||
2.55% Senior Debt Obligations Due 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 2.55% | ||||||||||||
Other Debt Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Revolving credit facility, amount outstanding | $ 600,000 | $ 400,000 | 600,000 | ||||||||||
Debt instrument, unused borrowing capacity | 260,000,000 | $ 229,000,000 | $ 260,000,000 | ||||||||||
4.80% Senior Debt Obligations Due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 4.80% | ||||||||||||
Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, term | 5 years | ||||||||||||
Line of credit facility, current borrowing capacity | $ 1,200,000,000.0 | ||||||||||||
Amended Revolving Credit Facility November 24, 2015 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Revolving credit facility, borrowing capacity | $ 1,500,000,000.0 | ||||||||||||
Amended Revolving Credit Facility March 28, 2014 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, term | 5 years | ||||||||||||
Revolving credit facility, borrowing capacity | $ 1,200,000,000.0 | ||||||||||||
Revolving credit facility, amount outstanding | $ 0 | ||||||||||||
5.75% Senior Debt Obligations Due 2015 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 5.75% | ||||||||||||
5.375% Senior Debt Obligations Due 2014 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 5.375% | 5.375% | 5.375% | ||||||||||
2.30% Senior Debt Obligations Due 2017 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 2.30% | ||||||||||||
Three-Year Delayed Draw Term Loan Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, term | 3 years | ||||||||||||
Revolving credit facility, borrowing capacity | $ 50,000,000 | ||||||||||||
4.05% Senior Debt Obligations Due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 4.05% | ||||||||||||
3.50% Senior Debt Obligations Due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, amount | $ 500,000,000 | ||||||||||||
Interest rate | 3.50% | 3.50% | |||||||||||
Debt instrument, term | 10 years 6 months | ||||||||||||
3.50% Senior Debt Obligations Due 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, amount | $ 600,000,000 | $ 600,000,000 | |||||||||||
Interest rate | 3.50% | 3.50% | 3.50% | ||||||||||
Debt instrument, term | 10 years | ||||||||||||
9.25% Senior Debt Obligations Due 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 9.25% | ||||||||||||
Partial redemption of notes | $ 400,000,000 | ||||||||||||
Senior Debt Obligations Due 2015 and Senior Debt Obligations Due 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Partial redemption of notes | 630,000,000 | ||||||||||||
Repayments of long-term debt | $ 765,000,000 | ||||||||||||
Cost for early redemption | $ 137,000,000 | ||||||||||||
5.375% Senior Debt Obligations Due 2014 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of long-term debt | $ 320,000,000 | ||||||||||||
5.75% Senior Debt Obligations Due 2015 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 5.75% | ||||||||||||
Partial redemption of notes | $ 230,000,000 | ||||||||||||
Line of Credit | Uncommitted Bank Credit Line | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Revolving credit facility, borrowing capacity | $ 150,000,000 | ||||||||||||
Short-term Debt | $ 0 |
Debt (Schedule Of Outstanding Debt) (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Sep. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
May. 31, 2014 |
---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||
Current portion of long-term debt | $ 12 | $ 11 | ||||
Long-term debt, current and noncurrent | 4,414 | 3,379 | ||||
Long-term debt and capital lease obligations | 4,402 | 3,368 | ||||
5.875% Senior Debt Obligations Due 2033 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 297 | 297 | ||||
Interest rate | 5.875% | |||||
5.375% Senior Debt Obligations Due 2014 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5.375% | 5.375% | ||||
5.75% Senior Debt Obligations Due 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5.75% | |||||
2.30% Senior Debt Obligations Due 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 249 | 249 | ||||
Interest rate | 2.30% | |||||
9.25% Senior Debt Obligations Due 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 9.25% | |||||
4.80% Senior Debt Obligations Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 497 | 497 | ||||
Interest rate | 4.80% | |||||
2.55% Senior Debt Obligations Due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 249 | 249 | ||||
Interest rate | 2.55% | |||||
4.05% Senior Debt Obligations Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 248 | 247 | ||||
Interest rate | 4.05% | |||||
3.50% Senior Debt Obligations Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 595 | 594 | ||||
Interest rate | 3.50% | 3.50% | ||||
2.35% Senior Debt Obligations Due 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 298 | 298 | ||||
Interest rate | 2.35% | 2.35% | ||||
3.50% Senior Debt Obligations Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 495 | 494 | ||||
Interest rate | 3.50% | 3.50% | ||||
3.75% Senior Debt Obligations Due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 595 | 0 | ||||
Interest rate | 3.75% | 3.75% | ||||
2.35% Senior Debt Obligations Due 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 496 | 0 | ||||
Interest rate | 2.35% | 2.35% | ||||
Mortgage Due 2035 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 393 | 403 | ||||
Interest rate | 5.70% | |||||
Three-Year Delayed Draw Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 0 | 50 | ||||
Other Debt Instruments | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, current and noncurrent | $ 2 | $ 1 |
Debt (Scheduled Repayments) (Details) $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Maturities of Long-term Debt [Abstract] | |
Repayments of principal in 2016 | $ 12 |
Repayments of principal in 2017 | 263 |
Repayments of principal in 2018 | 262 |
Repayments of principal in 2019 | 313 |
Repayments of principal in 2020 | $ 514 |
Debt (Estimated Fair Value Of Significant Financial Instruments) (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt | $ 12 | $ 11 |
Long-term debt | 4,513 | 3,493 |
Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt | 12 | 11 |
Long-term debt | $ 4,402 | $ 3,376 |
Integration and Restructuring Costs (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring actions costs | $ 28 | $ 12 | $ 22 | |
Liability balance | 93 | 92 | 124 | $ 170 |
Payments for restructuring | 28 | $ 43 | $ 68 | |
Operating Segments | Risk and Insurance Services Segment | Acquisition Related | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring actions costs | 8 | |||
Operating Segments | Consulting Segment | Acquisition Related | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring actions costs | 8 | |||
Corporate, Non-Segment | Acquisition Related | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring actions costs | $ 12 |
Integration and Restructuring Costs (Restructuring Activities) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Restructuring Reserve [Roll Forward] | |||
Liability at beginning of period | $ 92 | $ 124 | $ 170 |
Expense Incurred | 28 | 12 | 22 |
Cash Paid | (28) | (43) | (68) |
Other | 1 | (1) | |
Liability at end of period | 93 | 92 | 124 |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Liability at beginning of period | 7 | 11 | |
Expense Incurred | 17 | 4 | |
Cash Paid | (7) | (8) | |
Other | (2) | 0 | |
Liability at end of period | 15 | 7 | 11 |
Future rent under non-cancelable leases and other costs | |||
Restructuring Reserve [Roll Forward] | |||
Liability at beginning of period | 85 | 113 | |
Expense Incurred | 11 | 8 | |
Cash Paid | (21) | (35) | |
Other | 3 | (1) | |
Liability at end of period | $ 78 | $ 85 | $ 113 |
Common Stock (Details) - USD ($) shares in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
May. 31, 2015 |
|
Equity, Class of Treasury Stock [Line Items] | ||||
Payments for repurchase of common stock | $ 1,400,000,000 | $ 800,000,000 | $ 550,000,000 | |
Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchased | 24.8 | 15.5 | ||
Stock repurchase program, authorized amount | $ 2,000,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 1,200,000,000 |
Claims, Lawsuits And Other Contingencies (Details) £ in Millions |
Dec. 31, 2015
GBP (£)
|
---|---|
Other Contingencies-Guarantees | |
Loss Contingencies [Line Items] | |
Amount reinsured by third party | £ 40 |
Segment Information (Details For MMC's Operating Segments) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | $ 3,338 | $ 3,115 | $ 3,225 | $ 3,215 | $ 3,246 | $ 3,141 | $ 3,300 | $ 3,264 | $ 12,893 | $ 12,951 | $ 12,261 | |||||||
Operating Income (Loss) | 594 | $ 461 | $ 629 | $ 735 | 536 | $ 445 | $ 647 | $ 673 | 2,419 | 2,301 | 2,077 | |||||||
Total Assets | 18,216 | 17,793 | 18,216 | 17,793 | 16,960 | |||||||||||||
Depreciation and Amortization | 423 | 388 | 358 | |||||||||||||||
Capital Expenditures | 325 | 368 | 401 | |||||||||||||||
Risk and Insurance Services Segment | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Interest income, fiduciary assets | 21 | 24 | 27 | |||||||||||||||
Consulting Segment | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Interest income, fiduciary assets | 4 | 6 | 5 | |||||||||||||||
Operating Segments | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | 12,933 | 12,990 | 12,297 | |||||||||||||||
Operating Income (Loss) | 2,614 | 2,505 | 2,266 | |||||||||||||||
Total Assets | 19,775 | 18,127 | 19,775 | 18,127 | 16,543 | |||||||||||||
Depreciation and Amortization | 360 | 332 | 307 | |||||||||||||||
Capital Expenditures | 244 | 265 | 313 | |||||||||||||||
Operating Segments | Risk and Insurance Services Segment | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | [1] | 6,869 | 6,931 | 6,596 | ||||||||||||||
Operating Income (Loss) | 1,539 | 1,509 | 1,421 | |||||||||||||||
Total Assets | 13,290 | 12,211 | 13,290 | 12,211 | 11,365 | |||||||||||||
Depreciation and Amortization | 240 | 213 | 192 | |||||||||||||||
Capital Expenditures | 136 | 173 | 158 | |||||||||||||||
Interest income, fiduciary assets | 21 | 24 | 27 | |||||||||||||||
Equity method income | 6 | 9 | 8 | |||||||||||||||
Operating Segments | Consulting Segment | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | [2] | 6,064 | 6,059 | 5,701 | ||||||||||||||
Operating Income (Loss) | 1,075 | 996 | 845 | |||||||||||||||
Total Assets | 6,485 | 5,916 | 6,485 | 5,916 | 5,178 | |||||||||||||
Depreciation and Amortization | 120 | 119 | 115 | |||||||||||||||
Capital Expenditures | 108 | 92 | 155 | |||||||||||||||
Interest income, fiduciary assets | 4 | 6 | 5 | |||||||||||||||
Equity method income | 21 | 2 | 0 | |||||||||||||||
Intersegment Eliminations | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | (40) | (39) | (36) | |||||||||||||||
Intersegment Eliminations | Risk and Insurance Services Segment | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | 6 | 4 | 5 | |||||||||||||||
Intersegment Eliminations | Consulting Segment | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | 34 | 35 | 31 | |||||||||||||||
Corporate, Non-Segment | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenue | (40) | (39) | (36) | |||||||||||||||
Operating Income (Loss) | (195) | (204) | (189) | |||||||||||||||
Total Assets | [3] | $ (1,559) | $ (334) | (1,559) | (334) | 417 | ||||||||||||
Depreciation and Amortization | 63 | 56 | 51 | |||||||||||||||
Capital Expenditures | $ 81 | $ 103 | $ 88 | |||||||||||||||
|
Segment Information (Selected Information and Details Of Operating Segment Revenue) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | $ 3,338 | $ 3,115 | $ 3,225 | $ 3,215 | $ 3,246 | $ 3,141 | $ 3,300 | $ 3,264 | $ 12,893 | $ 12,951 | $ 12,261 | |||||
Fixed assets, net | 773 | 809 | 773 | 809 | 828 | |||||||||||
United States | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 6,316 | 5,865 | 5,485 | |||||||||||||
Fixed assets, net | 460 | 483 | 460 | 483 | 494 | |||||||||||
United Kingdom | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 2,036 | 2,111 | 1,979 | |||||||||||||
Fixed assets, net | 115 | 120 | 115 | 120 | 121 | |||||||||||
Europe | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 1,902 | 2,077 | 1,943 | |||||||||||||
Fixed assets, net | 57 | 60 | 57 | 60 | 64 | |||||||||||
Asia Pacific | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 1,333 | 1,420 | 1,396 | |||||||||||||
Fixed assets, net | 49 | 62 | 49 | 62 | 72 | |||||||||||
Other Geographic Areas | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 1,346 | 1,517 | 1,494 | |||||||||||||
Fixed assets, net | $ 92 | $ 84 | 92 | 84 | 77 | |||||||||||
Operating Segments | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 12,933 | 12,990 | 12,297 | |||||||||||||
Operating Segments | Risk and Insurance Services Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | [1] | 6,869 | 6,931 | 6,596 | ||||||||||||
Operating Segments | Consulting Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | [2] | 6,064 | 6,059 | 5,701 | ||||||||||||
Intersegment Eliminations | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | (40) | (39) | (36) | |||||||||||||
Intersegment Eliminations | Risk and Insurance Services Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 6 | 4 | 5 | |||||||||||||
Intersegment Eliminations | Consulting Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 34 | 35 | 31 | |||||||||||||
Marsh Insurance Group | Operating Segments | Risk and Insurance Services Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 5,745 | 5,774 | 5,461 | |||||||||||||
Guy Carpenter Reinsurance Group | Operating Segments | Risk and Insurance Services Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 1,124 | 1,157 | 1,135 | |||||||||||||
Mercer Consulting Group | Operating Segments | Consulting Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 4,313 | 4,350 | 4,241 | |||||||||||||
Oliver Wyman Group Consulting Group | Operating Segments | Consulting Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | $ 1,751 | $ 1,709 | $ 1,460 | |||||||||||||
|
Selected Quarterly Financial Data and Supplemental Information(Details) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
$ / shares
|
Sep. 30, 2015
USD ($)
$ / shares
|
Jun. 30, 2015
USD ($)
$ / shares
|
Mar. 31, 2015
USD ($)
$ / shares
|
Dec. 31, 2014
USD ($)
$ / shares
|
Sep. 30, 2014
USD ($)
$ / shares
|
Jun. 30, 2014
USD ($)
$ / shares
|
Mar. 31, 2014
USD ($)
$ / shares
|
Dec. 31, 2015
USD ($)
$ / shares
|
Dec. 31, 2014
USD ($)
$ / shares
|
Dec. 31, 2013
USD ($)
$ / shares
|
Feb. 18, 2016
stockholder
|
|
Subsequent Event [Line Items] | ||||||||||||
Revenue | $ | $ 3,338 | $ 3,115 | $ 3,225 | $ 3,215 | $ 3,246 | $ 3,141 | $ 3,300 | $ 3,264 | $ 12,893 | $ 12,951 | $ 12,261 | |
Operating income | $ | 594 | 461 | 629 | 735 | 536 | 445 | 647 | 673 | 2,419 | 2,301 | 2,077 | |
Income from continuing operations | $ | 380 | 329 | 429 | 498 | 269 | 305 | 440 | 457 | 1,636 | 1,471 | 1,379 | |
Discontinued operations, net of tax | $ | 1 | 2 | 0 | (3) | 30 | (1) | (2) | (1) | 0 | 26 | 6 | |
Net income attributable to the Company | $ | $ 375 | $ 323 | $ 419 | $ 482 | $ 294 | $ 297 | $ 431 | $ 443 | $ 1,599 | $ 1,465 | $ 1,357 | |
Basic Per Share Data: | ||||||||||||
Continuing operations | $ 0.72 | $ 0.61 | $ 0.78 | $ 0.90 | $ 0.49 | $ 0.55 | $ 0.79 | $ 0.81 | $ 3.01 | $ 2.64 | $ 2.46 | |
Discontinued operations, net of tax | 0.00 | 0.00 | 0.00 | (0.01) | 0.05 | 0.00 | (0.01) | 0.00 | ||||
Net income attributable to the Company | 0.72 | 0.61 | 0.78 | 0.89 | 0.54 | 0.55 | 0.78 | 0.81 | 3.01 | 2.69 | 2.47 | |
Diluted Per Share Data: | ||||||||||||
Continuing operations | 0.71 | 0.60 | 0.77 | 0.89 | 0.48 | 0.54 | 0.78 | 0.80 | 2.98 | 2.61 | 2.42 | |
Discontinued operations, net of tax | 0.00 | 0.01 | 0.00 | (0.01) | 0.06 | 0.00 | (0.01) | 0.00 | ||||
Net income attributable to the Company | 0.71 | 0.61 | 0.77 | 0.88 | 0.54 | 0.54 | 0.77 | 0.80 | $ 2.98 | $ 2.65 | $ 2.43 | |
Dividends Paid Per Share | $ 0.31 | $ 0.31 | $ 0.28 | $ 0.28 | $ 0.28 | $ 0.28 | $ 0.25 | $ 0.25 | ||||
Subsequent Event | ||||||||||||
Diluted Per Share Data: | ||||||||||||
Stockholders of record | stockholder | 5,927 |
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