Restructuring Costs

During the second quarter of 2018, Marsh initiated a program to simplify the organization through reduced management layers and more common structures across regions and businesses to more closely align with its more formalized segmentation strategy across large risk management, middle market corporate, and small commercial & personal segments. These efforts are expected to create increased efficiencies and additional capacity for reinvestment in people and technology. During the first quarter of 2019, the Company incurred severance and consulting costs of $5 million related to this initiative.

During the fourth quarter of 2018, Mercer initiated a program to restructure its business to further optimize the way Mercer operates, setting up the Company for a more fluid and nimble structure and operating model for the future. During the first quarter of 2019, the Company incurred restructuring severance and consulting costs of $10 million related to this initiative.

In addition to the changes discussed above, the Company incurred $3 million of restructuring costs related to severance and future rent under non-cancelable leases, primarily in Corporate.

Details of the restructuring activity from January 1, 2018 through March 31, 2019, which includes liabilities from actions prior to 2019, are as follows:



(In millions)	Liability at 1/1/18		Amounts Accrued		Cash Paid			Other			Liability at 12/31/18		Amounts Accrued		Cash Paid			Other		Liability at 3/31/19
Severance	$	15	$	137	$	(77	)	$	(2	)	$	73	$	37	$	(37	)	$	—	$	73
Future rent under non-cancelable leases and other costs	50		24		(37		)	2			39		1		(4		)	2		38
Total	$	65	$	161	$	(114	)	$	—		$	112	$	38	$	(41	)	$	2	$	111

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.

JLT Related Restructuring

In the first quarter of 2019, the Company initiated a restructuring program in anticipation of the acquisition of JLT on April 1, 2019. In connection with this activity, the Company incurred costs of $20 million (RIS - $19 million and Corporate - $1 million) in the first quarter of 2019. These costs were included in compensation and benefits in the consolidated statement of income.

Following the acquisition of JLT, the Company is completing plans for the integration and restructuring of the combined MMC and JLT operations world-wide.