Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||
London Stock Exchange |
☒ | Accelerated Filer | ☐ | ||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||
Emerging Growth Company |
• | our ability to compete effectively and adapt to changes in the competitive environment, including to respond to technological change, disintermediation, digital disruption and other types of innovation; |
• | the impact from lawsuits, other contingent liabilities and loss contingencies arising from errors and omissions, breach of fiduciary duty or other claims against us; |
• | our ability to attract and retain industry leading talent; |
• | our organization's ability to maintain adequate safeguards to protect the security of our information systems and confidential, personal or proprietary information, particularly given the large volume of our vendor network and the need to identify and patch software vulnerabilities, including those in the existing JLT information systems; |
• | our ability to successfully integrate or achieve the intended benefits of our acquisitions, including JLT; |
• | the impact of investigations, reviews, or other activity by regulatory or law enforcement authorities, including the ongoing investigation by the European Commission competition authority; |
• | our ability to maintain our credit ratings and repay our outstanding long-term debt in a timely manner and on favorable terms, including approximately $6.5 billion issued in connection with the acquisition of JLT; |
• | the regulatory, contractual and reputational risks that arise based on insurance placement activities and various insurer revenue streams; |
• | the financial and operational impact of complying with laws and regulations where we operate and the risks of noncompliance with such laws, including cybersecurity and data privacy regulations such as the E.U.’s General Data Protection Regulation, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act, U.K. Anti-Bribery Act and trade sanctions regimes; |
• | our ability to manage risks associated with our investment management and related services business, including potential conflicts of interest between investment consulting and fiduciary management services; |
• | the impact of macroeconomic, political, regulatory or market conditions on us, our clients and the industries in which we operate, including the impact of Brexit or the inability to collect on our receivables; |
• | our ability to successfully recover if we experience a business continuity problem due to cyberattack, natural disaster, pandemic or otherwise; and |
• | the impact of changes in tax laws, guidance and interpretations, including certain provisions of the U.S. Tax Cuts and Jobs Act, or disagreements with tax authorities. |
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 — | ||
Item 16 — | ||
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. The Company conducts business in this segment through Marsh and Guy Carpenter. |
• | Consulting includes health, wealth and career services and products, and specialized management, economic and brand consulting services. The Company conducts business in this segment through Mercer and Oliver Wyman Group. |
• | Marsh JLT Specialty. Marsh’s specialty unit combined with JLT Specialty to form Marsh JLT Specialty as part of the 2019 acquisition of Jardine Lloyd Thompson Group plc ("JLT"). The new unit offers leading expertise, global service and data-driven insights to clients across seven global specialties: aviation; credit specialties; financial & professional services; private equity & mergers & acquisitions; construction; energy & power; and marine & cargo. These teams of specialist experts are globally committed to delivering consulting, placement, account management and claims solutions to clients who require specialist advice and support. Marsh JLT Specialty has bolstered Marsh’s leadership as a global specialty broker. |
• | MMA offers a broad range of commercial property and casualty products and services, as well as solutions for employee health and benefits, retirement and administration needs and a growing personal lines business in the United States and Canada. Since its first acquisition in 2009, MMA has acquired 75 agencies. MMA provides advice on insurance program structure and market dynamics, along with industry expertise and transactional capability. |
• | Victor Insurance Holdings is one of the largest underwriting managers of professional liability and specialty insurance programs worldwide. In the United States, Victor Insurance Managers (US) and ICAT Managers deliver risk management and insurance solutions to over 125,000 insureds through a national third-party distribution network of licensed brokers. Victor Insurance Managers (Canada), a leading managing general agent in Canada with over 43,000 insureds, delivers professional liability and construction insurance, as well as group and retiree benefits programs and claims handling for individuals, organizations and businesses. Victor has a growing business in the UK (where it was formerly known as Bluefin Underwriting) and Europe, where new businesses have been launched in the Netherlands, Italy and Germany. |
• | Marsh Commercial (formerly branded as Jelf) services more than 250,000 clients, primarily in the small to mid-market segment across the United Kingdom, and offers high quality technical advice, bespoke products and distinctive services including claims consultancy, employee health and benefits, personal lines solutions and risk management. With the completion of the acquisition of JLT in 2019, and following the acquisitions of Bluefin in 2017 and Clark Thomson in 2018, Marsh Commercial has one of the United Kingdom's most extensive office networks focused on providing smaller organizations with access to high quality risk and insurance advice. |
• | Dovetail Insurance is a leading provider of cloud-based insurance services and transaction processing tailored to the U.S. small commercial market. Dovetail deploys a cloud-based technology platform that enables independent insurance agents, on behalf of their small business clients, to obtain online quotes from multiple insurance providers and bind property and casualty and workers compensation insurance policies in real time. |
• | Actuarial. Oliver Wyman’s Actuarial Practice uses mathematical and statistical modeling skills and qualitative assessment methodologies to assist clients in evaluating and addressing risk. |
• | 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 helps organizations capitalize on the opportunities created by digitization of business, and anticipate and neutralize strategic threats. |
• | Operations. Oliver Wyman helps organizations leverage their operations for a competitive advantage using a comprehensive set of capabilities, including performance improvement, digital operations strategy, and risk management. |
• | Organizational Effectiveness. Oliver Wyman's Organizational Effectiveness capability brings together deep functional expertise and industry knowledge to enable the whole organization to work in service of its strategic vision and to address the most pressing organizational, people, and change issues. |
• | Payments. Oliver Wyman draws on years of industry-shaping work in the Financial Services and Retail industries, deep digital expertise, and renowned research partners in its Celent® business, to help clients - from banks/issuers, to payments providers, to retailers - to build growth strategies, form effective partnerships, optimize costs, and manage risk. |
• | Pricing, Sales, and Marketing. Oliver Wyman helps organizations drive top-line and margin growth through outstanding strategy and decision making on pricing, marketing optimization, and best practices on sales effectiveness. |
• | 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 on risk |
• | 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. |
• | the retention of key colleagues and clients; |
• | failure to implement our business plan for the combined business or to achieve anticipated revenue or profitability targets; |
• | delays or difficulties in completing the integration of acquired companies or assets; |
• | higher than expected costs, lower than expected cost savings and/or a need to allocate resources to manage unexpected operating difficulties; |
• | issues in integrating information and technology, accounting, tax, financial reporting, human resources, and other systems; |
• | assumption of unknown liabilities, or other unanticipated issues, expenses and liabilities; |
• | weaknesses and vulnerabilities in an acquired entity’s information systems, either before or after the acquisition, which could expose us to unexpected liabilities or make our own systems more vulnerable to a cyberattack; |
• | changes in applicable laws and regulations or their interpretations, including changes in tax laws, employment regulations and changes in the U.K. and Europe related to Brexit; |
• | diversion of attention and resources of management; |
• | promoting or retaining a positive corporate culture; |
• | retaining and obtaining required regulatory approvals, licenses and permits; |
• | for acquisitions in which the acquired company’s financial performance is incorporated into our financial results, either in full or in part, the dependence on the acquired company’s accounting, financial reporting and similar systems, controls and processes; |
• | the difficulty of implementing the required controls, procedures and policies appropriate for a U.S. public company, including compliance with the requirements under the Sarbanes-Oxley Act of 2002, and the potential for significant deficiencies or material weaknesses related to controls and procedures, particularly for acquisitions of companies headquartered outside the U.S.; |
• | the ability to receive dividends and other payments from newly acquired companies; and |
• | compliance with all current and potentially applicable U.S. federal and state or foreign laws and regulations, including the U.K. Anti-Bribery Act, U.S. Foreign Corrupt Practices Act and U.S. anti-money laundering and sanctions laws. |
• | the number of client engagements 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; |
• | potential limitations on the clients or industries we serve resulting from increased regulation or changing stakeholder expectations on ESG issues; |
• | the impact of changes in accounting standards or in our accounting estimates or assumptions, including from the adoption of the revenue recognition, pension or lease accounting standards; |
• | the impact on us or our clients of changes in legislation, regulation and legal guidance or interpretations in the jurisdictions in which we operate, including with respect to the TCJA; |
• | 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, including factors beyond our control affecting economic conditions such as severe weather, climate change, global health crises and pandemics, geopolitical unrest or other catastrophic events, since our 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; |
• | client concentration in certain high-growth countries in which we operate; |
• | the length of payment cycles and potential difficulties in collecting accounts receivable; |
• | unexpected increases in taxes or changes in U.S. or foreign tax laws, rulings, policies or related legal and regulatory interpretations, including recent international initiatives to require multinational enterprises, like ours, to report profitability on a country-by-country basis, which could increase scrutiny by, or cause disagreements with, foreign tax authorities and the potential imposition of new global minimum tax; |
• | potential transfer pricing-related tax exposures that may result from the flow of funds among our subsidiaries and affiliates in the various jurisdictions in which we operate; |
• | 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 conflicts of interest that may arise as we expand the scope of our businesses and our client base; |
• | international hostilities, international trade disputes, terrorist activities, natural disasters and infrastructure disruptions; |
• | local investment or other financial restrictions that foreign governments may impose; |
• | potential lawsuits, investigations, market studies, reviews or other activity by foreign regulatory or law enforcement authorities or legislatively appointed commissions, which may result in potential modifications to our businesses, related private litigation or increased scrutiny from U.S. or other regulators; |
• | 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, Crimea, Iran, North Korea, Russia, Syria and Venezuela 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, the methods by which we sell our products and services and the manner in which and the amounts we are compensated; |
• | potential limitations or difficulties in protecting our intellectual property in various foreign jurisdictions; |
• | 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; |
• | 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 retain key colleagues and consulting professionals; |
• | 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. |
2019 Stock Price Range | 2018 Stock Price Range | |||||||
High | Low | High | Low | |||||
First Quarter | $94.96 | $77.85 | $85.94 | $78.69 | ||||
Second Quarter | $100.20 | $91.67 | $84.52 | $78.60 | ||||
Third Quarter | $103.37 | $94.81 | $87.89 | $81.38 | ||||
Fourth Quarter | $113.94 | $95.00 | $89.59 | $74.30 | ||||
Full Year | $113.94 | $77.85 | $89.59 | $74.30 |
Period | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | ||||||||||
Oct 1-31, 2019 | 553,907 | $ | 97.4891 | 553,907 | $ | 511,753,209 | ||||||||
Nov 1-30, 2019 | 685,452 | $ | 105.0219 | 685,452 | $ | 2,482,000,302 | ||||||||
Dec 1-31, 2019 | 537,171 | $ | 109.858 | 537,171 | $ | 2,422,987,756 | ||||||||
Total | 1,776,530 | $ | 104.1355 | 1,776,530 | $ | 2,422,987,756 |
For the Years Ended December 31, (In millions, except per share figures) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||
Revenue | $ | 16,652 | $ | 14,950 | $ | 14,024 | $ | 13,211 | $ | 12,893 | |||||||||
Expense: | |||||||||||||||||||
Compensation and Benefits | 9,734 | 8,605 | 8,085 | 7,694 | 7,569 | ||||||||||||||
Other Operating Expenses | 4,241 | 3,584 | 3,284 | 3,086 | 3,140 | ||||||||||||||
Operating Expenses | 13,975 | 12,189 | 11,369 | 10,780 | 10,709 | ||||||||||||||
Operating Income (a) | 2,677 | 2,761 | 2,655 | 2,431 | 2,184 | ||||||||||||||
Other net benefits credits | 265 | 215 | 201 | 233 | 235 | ||||||||||||||
Interest Income | 39 | 11 | 9 | 5 | 13 | ||||||||||||||
Interest Expense | (524 | ) | (290 | ) | (237 | ) | (189 | ) | (163 | ) | |||||||||
Cost of Extinguishment of Debt | (32 | ) | — | — | — | — | |||||||||||||
Investment income (loss) | 22 | (12 | ) | 15 | — | 38 | |||||||||||||
Acquisition Related Derivative Contracts | (8 | ) | (441 | ) | — | — | — | ||||||||||||
Income Before Income Taxes | 2,439 | 2,244 | 2,643 | 2,480 | 2,307 | ||||||||||||||
Income Tax Expense (b) | 666 | 574 | 1,133 | 685 | 671 | ||||||||||||||
Income From Continuing Operations | 1,773 | 1,670 | 1,510 | 1,795 | 1,636 | ||||||||||||||
Discontinued Operations, Net of Tax | — | — | 2 | — | — | ||||||||||||||
Net Income Before Non-Controlling Interests | 1,773 | 1,670 | 1,512 | 1,795 | 1,636 | ||||||||||||||
Less: Net Income Attributable to Non-Controlling Interests | 31 | 20 | 20 | 27 | 37 | ||||||||||||||
Net Income Attributable to the Company | $ | 1,742 | $ | 1,650 | $ | 1,492 | $ | 1,768 | $ | 1,599 | |||||||||
Basic Net Income Per Share Information: | |||||||||||||||||||
Income From Continuing Operations | $ | 3.44 | $ | 3.26 | $ | 2.91 | $ | 3.41 | $ | 3.01 | |||||||||
Income From Discontinued Operations | — | — | — | — | — | ||||||||||||||
Net Income Attributable to the Company | $ | 3.44 | $ | 3.26 | $ | 2.91 | $ | 3.41 | $ | 3.01 | |||||||||
Average Number of Shares Outstanding | 506 | 506 | 513 | 519 | 531 | ||||||||||||||
Diluted Income Per Share Information: | |||||||||||||||||||
Income From Continuing Operations | $ | 3.41 | $ | 3.23 | $ | 2.87 | $ | 3.38 | $ | 2.98 | |||||||||
Discontinued Operations, Net of Tax Per Share | — | — | — | — | — | ||||||||||||||
Net Income Attributable to the Company | $ | 3.41 | $ | 3.23 | $ | 2.87 | $ | 3.38 | $ | 2.98 | |||||||||
Average Number of Shares Outstanding | 511 | 511 | 519 | 524 | 536 | ||||||||||||||
Dividends Paid Per Share | $ | 1.74 | $ | 1.58 | $ | 1.43 | $ | 1.30 | $ | 1.18 | |||||||||
Return on Average Equity | 22 | % | 22 | % | 22 | % | 27 | % | 23 | % | |||||||||
Year-End Financial Position: | |||||||||||||||||||
Working capital | $ | 389 | $ | 1,010 | $ | 1,300 | $ | 802 | $ | 1,336 | |||||||||
Total assets | $ | 31,357 | $ | 21,578 | $ | 20,429 | $ | 18,190 | $ | 18,216 | |||||||||
Long-term debt | $ | 10,741 | $ | 5,510 | $ | 5,225 | $ | 4,495 | $ | 4,402 | |||||||||
Total equity | $ | 7,943 | $ | 7,584 | $ | 7,442 | $ | 6,272 | $ | 6,602 | |||||||||
Total shares outstanding (net of treasury shares) | 504 | 504 | 509 | 514 | 522 | ||||||||||||||
Other Information: | |||||||||||||||||||
Number of employees | 76,000 | 66,000 | 64,000 | 60,000 | 60,000 | ||||||||||||||
Stock price ranges— | |||||||||||||||||||
U.S. exchanges — High | $ | 113.94 | $ | 89.59 | $ | 86.54 | $ | 69.77 | $ | 59.99 | |||||||||
— Low | $ | 77.85 | $ | 74.30 | $ | 66.75 | $ | 50.81 | $ | 50.90 |
(a) | Includes the impact of net restructuring costs of $112 million, $161 million, $40 million, $44 million, and $28 million in 2019, 2018, 2017, 2016 and 2015, respectively, and JLT integration, restructuring and acquisition related costs of $485 million in 2019 and $12 million in 2018. |
(b) | Income tax expense in 2017 includes a $460 million provisional charge related to the enactment of U.S. tax reform. |
• | 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. The Company conducts business in this segment through Marsh and Guy Carpenter. |
• | Consulting includes health, wealth and career consulting services and products, and specialized management, economic and brand consulting services. The Company conducts business in this segment through Mercer and Oliver Wyman Group. |
For the Years Ended December 31, (In millions, except per share figures) | 2019 | 2018 | 2017 | ||||||||
Revenue | $ | 16,652 | $ | 14,950 | $ | 14,024 | |||||
Expense | |||||||||||
Compensation and Benefits | 9,734 | 8,605 | 8,085 | ||||||||
Other Operating Expenses | 4,241 | 3,584 | 3,284 | ||||||||
Operating Expenses | 13,975 | 12,189 | 11,369 | ||||||||
Operating Income | $ | 2,677 | $ | 2,761 | $ | 2,655 | |||||
Income Before Income Taxes | $ | 2,439 | $ | 2,244 | $ | 2,643 | |||||
Income from Continuing Operations | $ | 1,773 | $ | 1,670 | $ | 1,510 | |||||
Discontinued Operations, Net of Tax | — | — | 2 | ||||||||
Net Income Before Non-Controlling Interests | $ | 1,773 | $ | 1,670 | $ | 1,512 | |||||
Net Income Attributable to the Company | $ | 1,742 | $ | 1,650 | $ | 1,492 | |||||
Basic net income per share | |||||||||||
– Continuing Operations | $ | 3.44 | $ | 3.26 | $ | 2.91 | |||||
– Net income attributable to the Company | $ | 3.44 | $ | 3.26 | $ | 2.91 | |||||
Diluted net income per share | |||||||||||
– Continuing operations | $ | 3.41 | $ | 3.23 | $ | 2.87 | |||||
– Net income attributable to the Company | $ | 3.41 | $ | 3.23 | $ | 2.87 | |||||
Average number of shares outstanding | |||||||||||
– Basic | 506 | 506 | 513 | ||||||||
– Diluted | 511 | 511 | 519 | ||||||||
Shares outstanding at December 31, | 504 | 504 | 509 |
Twelve Months Ended December 31, | |||||||||||
(In millions) | 2019 | 2018 | 2017 | ||||||||
Restructuring costs, excluding JLT | $ | 112 | $ | 161 | $ | 40 | |||||
JLT integration and restructuring costs | 335 | — | — | ||||||||
JLT acquisition related costs | 150 | 12 | — | ||||||||
Impact on operating income | 597 | 173 | 40 | ||||||||
Change in fair value of acquisition related derivative contracts | 8 | 441 | — | ||||||||
Pension settlement charges | 7 | 42 | 54 | ||||||||
Early extinguishment of JLT debt | 32 | — | — | ||||||||
JLT related interest income - pre-acquisition | (25 | ) | — | — | |||||||
JLT related interest expense - pre-acquisition | 53 | 30 | — | ||||||||
Investment loss (impairment loss) | — | 83 | — | ||||||||
Impact on income before taxes | $ | 672 | $ | 769 | $ | 94 |
• | Restructuring costs, excluding JLT: Includes severance and related charges from restructuring activities, adjustments to restructuring liabilities for future rent under non-cancellable leases and other real estate costs, and restructuring costs related to the integration of recent acquisitions. These costs are discussed in more detail in Note 14 of the consolidated financial statements. |
• | JLT integration and restructuring costs: Includes costs incurred for staff reductions, lease related exit costs as well as consulting costs related to the JLT Transaction. These costs are discussed in more detail in Note 14 of the consolidated financial statements. |
• | JLT acquisition related costs: Includes advisor fees and stamp duty taxes related to the closing of the JLT Transaction and retention costs. These costs are reflected as part of net operating income. Also includes the loss on the sale of JLT's aerospace business, which is included in revenue. |
• | Change in fair value of acquisition related derivatives: In connection with the JLT Transaction, to hedge the risk of appreciation of the GBP-denominated purchase price relative to the U.S. dollar, in September 2018, the Company entered into a deal contingent foreign exchange contract (the "FX Contract") to, solely upon consummation of the JLT Transaction, purchase £5.2 billion and sell a corresponding amount of U.S. dollars at a contracted exchange rate. The FX Contract is discussed in Note 11 to the consolidated financial statements. An unrealized loss of $325 million related to the fair value changes to this derivative was recognized in the consolidated |
• | JLT related interest income and expense: To secure funding for the Transaction, the Company entered into a bridge loan agreement with aggregate commitments of £5.2 billion in September 2018. The Company paid the customary upfront fees related to the bridge loan, which were amortized as interest expense based on the period of time the facility was expected to be in effect. The Company recorded interest expense of approximately $30 million for the year ended December 31, 2018 related to the amortization of the bridge loan fees and an additional $6 million in 2019 upon termination of the bridge loan agreement in connection with the closing of the JLT Transaction. The Company recorded approximately $47 million of interest expense related to the senior notes issued in the first quarter of 2019 and $25 million of interest income from the investment of the proceeds prior to the closing of the JLT Transaction |
• | Investment loss-impairment charge: The Company owns approximately 34% of the common stock of Alexander Forbes ("AF"), a South African company listed on the Johannesburg Stock Exchange, which it purchased in 2014 for 7.50 South African Rand per share. Based on the duration of time and the extent to which the shares traded below their cost, the Company concluded the decline in value of the investment was other than temporary and recorded a charge of $83 million in the 2018 consolidated statement of income. See Note 5 to the consolidated financial statements for additional information regarding the pending sale of the Company's remaining investment in AF. |
• | Pension settlement charge: The Defined Benefit Pension Plans in the U.K. and certain other countries allow participants an option for the payment of a lump sum distribution from plan assets before retirement in full satisfaction of the retirement benefits due to the participant as well as any survivor’s benefit. The Company’s policy under applicable U.S. GAAP is to treat these lump sum payments as a partial settlement of the plan liability if they exceed the sum of service cost plus interest cost components of net period pension cost of a plan for the year ("settlement thresholds"). The amount of lump sum payments through December 31, 2018 exceeded the settlement thresholds in two of the U.K. plans. The Company recorded non-cash settlement charges, primarily related to these plans of $42 million and $54 million for the years ended December 31, 2018 and 2017, respectively, of which approximately 90% impacted Risk and Insurance Services. In 2019, the Company recorded $7 million of non-cash pension settlement charges related to certain of its non U.S. plans. |
Year Ended December 31, | 2018 Including JLT | % Change Including JLT in 2018 | Components of Revenue Change Including JLT* | |||||||||||||||||||||||
(In millions, except percentage figures) | 2019 | 2018 | % Change GAAP Revenue | Currency Impact | Acquisitions/ Dispositions/ Other Impact | Underlying Revenue | ||||||||||||||||||||
Risk and Insurance Services | ||||||||||||||||||||||||||
Marsh | $ | 8,014 | $ | 6,877 | 17 | % | $ | 7,895 | 2 | % | (2 | )% | — | 4 | % | |||||||||||
Guy Carpenter | 1,480 | 1,286 | 15 | % | 1,442 | 3 | % | (1 | )% | (1 | )% | 5 | % | |||||||||||||
Subtotal | 9,494 | 8,163 | 16 | % | 9,337 | 2 | % | (2 | )% | — | 4 | % | ||||||||||||||
Fiduciary Interest Income | 105 | 65 | 78 | |||||||||||||||||||||||
Total Risk and Insurance Services | 9,599 | 8,228 | 17 | % | 9,415 | 2 | % | (2 | )% | — | 4 | % | ||||||||||||||
Consulting | ||||||||||||||||||||||||||
Mercer | 5,021 | 4,732 | 6 | % | 5,001 | — | (2 | )% | — | 2 | % | |||||||||||||||
Oliver Wyman Group | 2,122 | 2,047 | 4 | % | 2,047 | 4 | % | (2 | )% | — | 6 | % | ||||||||||||||
Total Consulting | 7,143 | 6,779 | 5 | % | 7,048 | 1 | % | (2 | )% | — | 3 | % | ||||||||||||||
Corporate/Eliminations | (90 | ) | (57 | ) | (57 | ) | ||||||||||||||||||||
Total Revenue | $ | 16,652 | $ | 14,950 | 11 | % | $ | 16,406 | 2 | % | (2 | )% | — | 4 | % |
Year Ended December 31, | 2018 Including JLT | % Change Including JLT in 2018 | Components of Revenue Change Including JLT* | |||||||||||||||||||||||
(In millions, except percentage figures) | 2019 | 2018 | % Change GAAP Revenue | Currency Impact | Acquisitions/ Dispositions/ Other | Underlying Revenue | ||||||||||||||||||||
Marsh: | ||||||||||||||||||||||||||
EMEA | $ | 2,482 | $ | 2,132 | 16 | % | $ | 2,607 | (5 | )% | (3 | )% | (2 | )% | 1 | % | ||||||||||
Asia Pacific | 953 | 683 | 39 | % | 948 | 1 | % | (3 | )% | (3 | )% | 7 | % | |||||||||||||
Latin America | 460 | 400 | 15 | % | 515 | (11 | )% | (8 | )% | (6 | )% | 3 | % | |||||||||||||
Total International | 3,895 | 3,215 | 21 | % | 4,070 | (4 | )% | (4 | )% | (3 | )% | 3 | % | |||||||||||||
U.S./Canada | 4,119 | 3,662 | 12 | % | 3,825 | 8 | % | — | 3 | % | 5 | % | ||||||||||||||
Total Marsh | $ | 8,014 | $ | 6,877 | 17 | % | $ | 7,895 | 2 | % | (2 | )% | — | 4 | % | |||||||||||
Mercer: | ||||||||||||||||||||||||||
Wealth | 2,369 | 2,185 | 8 | % | 2,394 | (1 | )% | (3 | )% | 2 | % | — | ||||||||||||||
Health | 1,796 | 1,735 | 4 | % | 1,793 | — | (1 | )% | (3 | )% | 5 | % | ||||||||||||||
Career | 856 | 812 | 5 | % | 814 | 5 | % | (2 | )% | 3 | % | 5 | % | |||||||||||||
Total Mercer | $ | 5,021 | $ | 4,732 | 6 | % | $ | 5,001 | — | (2 | )% | — | 2 | % | ||||||||||||
* Components of revenue change may not add due to rounding. |
(In millions of dollars, except percentages) | 2019 | 2018 | 2017 | ||||||||
Revenue | $ | 9,599 | $ | 8,228 | $ | 7,630 | |||||
Compensation and Benefits | 5,370 | 4,485 | 4,171 | ||||||||
Other Operating Expenses | 2,396 | 1,879 | 1,728 | ||||||||
Operating Expenses | 7,766 | 6,364 | 5,899 | ||||||||
Operating Income | $ | 1,833 | $ | 1,864 | $ | 1,731 | |||||
Operating Income Margin | 19.1 | % | 22.7 | % | 22.7 | % |
(In millions of dollars, except percentages) | 2019 | 2018 | 2017 | ||||||||
Revenue | $ | 7,143 | $ | 6,779 | $ | 6,444 | |||||
Compensation and Benefits | 3,934 | 3,760 | 3,573 | ||||||||
Other Operating Expenses | 1,999 | 1,920 | 1,761 | ||||||||
Operating Expenses | 5,933 | 5,680 | 5,334 | ||||||||
Operating Income | $ | 1,210 | $ | 1,099 | $ | 1,110 | |||||
Operating Income Margin | 16.9 | % | 16.2 | % | 17.2 | % |
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 | $ | 1,217 | $ | 1,217 | $ | — | $ | — | $ | — | |||||||||
Long-term debt | 10,808 | — | 1,334 | 2,234 | 7,240 | ||||||||||||||
Interest on long-term debt | 5,556 | 456 | 807 | 689 | 3,604 | ||||||||||||||
Net operating leases | 2,610 | 413 | 694 | 529 | 974 | ||||||||||||||
Service agreements | 349 | 184 | 89 | 61 | 15 | ||||||||||||||
Other long-term obligations | 448 | 195 | 243 | 5 | 5 | ||||||||||||||
Total | $ | 20,988 | $ | 2,465 | $ | 3,167 | $ | 3,518 | $ | 11,838 |
Total Company | U.S. | ROW | ||||||
Assumed Rate of Return on Plan Assets | 5.31 | % | 7.82 | % | 4.35 | % | ||
Discount Rate | 2.57 | % | 3.44 | % | 2.09 | % |
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 | ) | $ | (47 | ) | $ | 22 | $ | 47 | |||||
Discount Rate | $ | 1 | $ | 2 | $ | (2 | ) | $ | (3 | ) |
• | First, 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. 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 of being 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 and involve significant management judgment. 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. |
(In millions) | Three Months Ended December 31, 2018 | Twelve Months Ended December 31, 2018 | |||||
MMC As Previously Reported | |||||||
Risk & Insurance Services | |||||||
Marsh | $ | 1,804 | $ | 6,877 | |||
Guy Carpenter | 102 | 1,286 | |||||
Subtotal | 1,906 | 8,163 | |||||
Fiduciary Interest Income | 19 | 65 | |||||
Total Risk & Insurance Services | 1,925 | 8,228 | |||||
Consulting | |||||||
Mercer | 1,228 | 4,732 | |||||
Oliver Wyman Group | 577 | 2,047 | |||||
Total Consulting | 1,805 | 6,779 | |||||
Corporate Eliminations | (18 | ) | (57 | ) | |||
Total Revenue | $ | 3,712 | $ | 14,950 | |||
JLT 2018 | |||||||
Specialty (Marsh) | $ | 407 | $ | 1,018 | |||
Reinsurance (Guy Carpenter) | 48 | 156 | |||||
Employee Benefits (Mercer) | 96 | 269 | |||||
Subtotal | 551 | 1,443 | |||||
Fiduciary Interest Income | 5 | 13 | |||||
Total Revenue | $ | 556 | $ | 1,456 | |||
2018 Including JLT | |||||||
Marsh | $ | 2,211 | $ | 7,895 | |||
Guy Carpenter | 150 | 1,442 | |||||
Subtotal | 2,361 | 9,337 | |||||
Fiduciary Interest Income | 24 | 78 | |||||
Total Risk & Insurance Services | 2,385 | 9,415 | |||||
Consulting | |||||||
Mercer | 1,324 | 5,001 | |||||
Oliver Wyman Group | 577 | 2,047 | |||||
Total Consulting | 1,901 | 7,048 | |||||
Corporate Eliminations | (18 | ) | (57 | ) | |||
Total Revenue Including JLT | $ | 4,268 | $ | 16,406 |
(In millions of dollars) | December 31, 2019 | ||
Cash and cash equivalents invested in money market funds, certificates of deposit and time deposits | $ | 1,155 | |
Fiduciary cash and investments | $ | 7,344 |
For the Years Ended December 31, | ||||||||||||
(In millions, except per share figures) | 2019 | 2018 | 2017 | |||||||||
Revenue | $ | $ | $ | |||||||||
Expense: | ||||||||||||
Compensation and benefits | ||||||||||||
Other operating expenses | ||||||||||||
Operating expenses | ||||||||||||
Operating income | ||||||||||||
Other net benefits credits | ||||||||||||
Interest income | ||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ||||||
Cost of extinguishment of debt | ( | ) | — | |||||||||
Investment income (loss) | ( | ) | ||||||||||
Acquisition related derivative contracts | ( | ) | ( | ) | ||||||||
Income before income taxes | ||||||||||||
Income tax expense | ||||||||||||
Income from continuing operations | ||||||||||||
Discontinued operations, net of tax | ||||||||||||
Net income before non-controlling interests | ||||||||||||
Less: Net income attributable to non-controlling interests | ||||||||||||
Net income attributable to the Company | $ | $ | $ | |||||||||
Basic net income per share | ||||||||||||
– Continuing operations | $ | $ | $ | |||||||||
– Net income attributable to the Company | $ | $ | $ | |||||||||
Diluted net income per share | ||||||||||||
– Continuing operations | $ | $ | $ | |||||||||
– Net income attributable to the Company | $ | $ | $ | |||||||||
Average number of shares outstanding | ||||||||||||
– Basic | ||||||||||||
– Diluted | ||||||||||||
Shares outstanding at December 31, |
For the Years Ended December 31, (In millions) | 2019 | 2018 | 2017 | ||||||||
Net income before non-controlling interests | $ | $ | $ | ||||||||
Other comprehensive (loss) income, before tax: | |||||||||||
Foreign currency translation adjustments | ( | ) | |||||||||
Unrealized investment (loss) income | ( | ) | |||||||||
(Loss) gain related to pension/post-retirement plans | ( | ) | ( | ) | |||||||
Other comprehensive (loss) income, before tax | ( | ) | ( | ) | |||||||
Income tax (credit) expense on other comprehensive (loss) income | ( | ) | ( | ) | |||||||
Other comprehensive (loss) income, net of tax | ( | ) | ( | ) | |||||||
Comprehensive income | |||||||||||
Less: Comprehensive income attributable to non-controlling interests | |||||||||||
Comprehensive income attributable to the Company | $ | $ | $ |
December 31, | |||||||
(In millions, except share figures) | 2019 | 2018 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Receivables | |||||||
Commissions and fees | |||||||
Advanced premiums and claims | |||||||
Other | |||||||
Less-allowance for doubtful accounts and cancellations | ( | ) | ( | ) | |||
Net receivables | |||||||
Other current assets | |||||||
Total current assets | |||||||
Goodwill | |||||||
Other intangible assets | |||||||
Fixed assets, net | |||||||
Pension related assets | |||||||
Right of use assets | — | ||||||
Deferred tax assets | |||||||
Other assets | |||||||
$ | $ | ||||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt | $ | $ | |||||
Accounts payable and accrued liabilities | |||||||
Accrued compensation and employee benefits | |||||||
Acquisition related derivatives | |||||||
Current lease liabilities | — | ||||||
Accrued income taxes | |||||||
Total current liabilities | |||||||
Fiduciary liabilities | |||||||
Less – cash and investments held in a fiduciary capacity | ( | ) | ( | ) | |||
Long-term debt | |||||||
Pension, postretirement and postemployment benefits | |||||||
Long-term lease liabilities | — | ||||||
Liability for errors and omissions | |||||||
Other liabilities | |||||||
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, 2019 and December 31, 2018 | |||||||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Non-controlling interests | |||||||
Less – treasury shares, at cost, 57,013,097 shares at December 31, 2019 and 56,804,468 shares at December 31, 2018 | ( | ) | ( | ) | |||
Total equity | |||||||
$ | $ |
For the Years Ended December 31, | |||||||||||
(In millions) | 2019 | 2018 | 2017 | ||||||||
Operating cash flows: | |||||||||||
Net income before non-controlling interests | $ | $ | $ | ||||||||
Adjustments to reconcile net income to cash provided by operations: | |||||||||||
Depreciation and amortization of fixed assets and capitalized software | |||||||||||
Amortization of intangible assets | |||||||||||
Non cash lease expense | |||||||||||
Adjustments and payments related to contingent consideration liability | ( | ) | ( | ) | |||||||
Loss on deconsolidation of entity | |||||||||||
Charge for early extinguishment of debt | |||||||||||
Provision (Benefit) for deferred income taxes | ( | ) | |||||||||
(Gain) loss on investments | ( | ) | ( | ) | |||||||
Loss (gain) on disposition of assets | ( | ) | |||||||||
Share-based compensation expense | |||||||||||
Change in fair value of acquisition-related derivative contracts | |||||||||||
Changes in assets and liabilities: | |||||||||||
Net receivables | ( | ) | ( | ) | ( | ) | |||||
Other current assets | ( | ) | ( | ) | |||||||
Other assets | ( | ) | ( | ) | ( | ) | |||||
Accounts payable and accrued liabilities | |||||||||||
Accrued compensation and employee benefits | |||||||||||
Accrued income taxes | ( | ) | |||||||||
Contributions to pension and other benefit plans in excess of current year expense/credit | ( | ) | ( | ) | ( | ) | |||||
Other liabilities | ( | ) | |||||||||
Operating lease liabilities | ( | ) | |||||||||
Effect of exchange rate changes | ( | ) | ( | ) | |||||||
Net cash provided by operations | |||||||||||
Financing cash flows: | |||||||||||
Purchase of treasury shares | ( | ) | ( | ) | ( | ) | |||||
Net increase in short term borrowings | |||||||||||
Proceeds from issuance of debt | |||||||||||
Repayments of debt | ( | ) | ( | ) | ( | ) | |||||
Payment of bridge loan fees | ( | ) | |||||||||
Payments for early extinguishment of debt | ( | ) | |||||||||
Purchase of non-controlling interests | ( | ) | |||||||||
Acquisition-related derivative payments | ( | ) | |||||||||
Shares withheld for taxes on vested units – treasury shares | ( | ) | ( | ) | ( | ) | |||||
Issuance of common stock from treasury shares | |||||||||||
Payments of deferred and contingent consideration for acquisitions | ( | ) | ( | ) | ( | ) | |||||
Distributions of non-controlling interests | ( | ) | ( | ) | ( | ) | |||||
Dividends paid | ( | ) | ( | ) | ( | ) | |||||
Net cash provided by (used for) financing activities | ( | ) | ( | ) | |||||||
Investing cash flows: | |||||||||||
Capital expenditures | ( | ) | ( | ) | ( | ) | |||||
Net sales (purchases) of long-term investments | ( | ) | |||||||||
Purchase of equity investment | ( | ) | |||||||||
Proceeds from sales of fixed assets | |||||||||||
Dispositions | |||||||||||
Acquisitions | ( | ) | ( | ) | ( | ) | |||||
Other, net | ( | ) | ( | ) | |||||||
Net cash used for investing activities | ( | ) | ( | ) | ( | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | ( | ) | |||||||||
increase (Decrease) in cash and cash equivalents | ( | ) | |||||||||
Cash and cash equivalents at beginning of year | |||||||||||
Cash and cash equivalents at end of year | $ | $ | $ |
For the Years Ended December 31, | |||||||||||
(In millions, except per share figures) | 2019 | 2018 | 2017 | ||||||||
COMMON STOCK | |||||||||||
Balance, beginning and end of year | $ | $ | $ | ||||||||
ADDITIONAL PAID-IN CAPITAL | |||||||||||
Balance, beginning of year | $ | $ | $ | ||||||||
Change in accrued stock compensation costs | |||||||||||
Issuance of shares under stock compensation plans and employee stock purchase plans and related tax impact | ( | ) | ( | ) | ( | ) | |||||
Other | ( | ) | |||||||||
Balance, end of year | $ | $ | $ | ||||||||
RETAINED EARNINGS | |||||||||||
Balance, beginning of year | $ | $ | $ | ||||||||
Net income attributable to the Company | |||||||||||
Cumulative effect of adoption of the revenue recognition standard (See Note 1) | |||||||||||
Cumulative effect of adoption of other accounting standards (See Note 1) | |||||||||||
Dividend equivalents declared and paid - (per share amounts: $1.74 in 2019, $1.58 in 2018, and $1.43 in 2017) | ( | ) | ( | ) | ( | ) | |||||
Dividends declared and paid – (per share amounts: $1.74 in 2019, $1.58 in 2018, and $1.43 in 2017) | ( | ) | ( | ) | ( | ) | |||||
Balance, end of year | $ | $ | $ | ||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||
Balance, beginning of year | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Cumulative effect of adoption of the financial instruments standard (See Note 1) | ( | ) | |||||||||
Other comprehensive (loss) income, net of tax | ( | ) | ( | ) | |||||||
Balance, end of year | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
TREASURY SHARES | |||||||||||
Balance, beginning of year | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Issuance of shares under stock compensation plans and employee stock purchase plans | |||||||||||
Purchase of treasury shares | ( | ) | ( | ) | ( | ) | |||||
Balance, end of year | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
NON-CONTROLLING INTERESTS | |||||||||||
Balance, beginning of year | $ | $ | $ | ||||||||
Net income attributable to non-controlling interests | |||||||||||
Distributions and other changes | ( | ) | ( | ) | ( | ) | |||||
Net non-controlling interests acquired | |||||||||||
Balance, end of year | $ | $ | $ | ||||||||
TOTAL EQUITY | $ | $ | $ |
December 31, | ||||||||
(In millions of dollars) | 2019 | 2018 | ||||||
Furniture and equipment | $ | $ | ||||||
Land and buildings | ||||||||
Leasehold and building improvements | ||||||||
Less-accumulated depreciation and amortization | ( | ) | ( | ) | ||||
$ | $ |
Basic and Diluted EPS Calculation - Continuing Operations | |||||||||||
(In millions, except per share figures) | 2019 | 2018 | 2017 | ||||||||
Net income from continuing operations | $ | $ | $ | ||||||||
Less: Net income attributable to non-controlling interests | |||||||||||
$ | $ | $ | |||||||||
Basic weighted average common shares outstanding | |||||||||||
Dilutive effect of potentially issuable common shares | |||||||||||
Diluted weighted average common shares outstanding | |||||||||||
Average stock price used to calculate common stock equivalents | $ | $ | $ |
Twelve Months Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Marsh: | ||||||||||||
EMEA | $ | $ | $ | |||||||||
Asia Pacific | ||||||||||||
Latin America | ||||||||||||
Total International | ||||||||||||
U.S./Canada | ||||||||||||
Total Marsh | ||||||||||||
Guy Carpenter | ||||||||||||
Subtotal | ||||||||||||
Fiduciary interest income | ||||||||||||
Total Risk and Insurance Services | $ | $ | $ | |||||||||
Mercer: | ||||||||||||
Wealth | $ | $ | $ | |||||||||
Health | ||||||||||||
Career | ||||||||||||
Total Mercer | ||||||||||||
Oliver Wyman | ||||||||||||
Total Consulting | $ | $ | $ |
(In millions) | December 31, 2019 | December 31, 2018 | January 1, 2018 | |||||||||
Contract Assets | $ | $ | $ | |||||||||
Contract Liabilities | $ | $ | $ |
(In millions of dollars) | 2019 | 2018 | 2017 | ||||||||
Assets acquired, excluding cash | $ | $ | $ | ||||||||
Liabilities assumed | ( | ) | ( | ) | ( | ) | |||||
Non-controlling interests assumed | ( | ) | |||||||||
Contingent/deferred purchase consideration | ( | ) | ( | ) | ( | ) | |||||
Net cash outflow for acquisitions | $ | $ | $ |
(In millions of dollars) | 2019 | 2018 | 2017 | ||||||||
Interest paid | $ | $ | $ | ||||||||
Income taxes paid, net of refunds | $ | $ | $ |
For the Years Ended December 31, | |||||||||||
(In millions of dollars) | 2019 | 2018 | 2017 | ||||||||
Balance at beginning of year | $ | $ | $ | ||||||||
Provision charged to operations | |||||||||||
Accounts written-off, net of recoveries | ( | ) | ( | ) | ( | ) | |||||
Effect of exchange rate changes and other | ( | ) | |||||||||
Balance at end of year | $ | $ | $ |
(In millions of dollars) | Unrealized Investment Gains (Losses) | Pension/Post-Retirement Plans Gains (Losses) | Foreign Currency Translation Adjustments | Total | |||||||||||
Balance as of January 1, 2019 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Other comprehensive (loss) gain before reclassifications | ( | ) | ( | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||
Net current period other comprehensive (loss) gain | ( | ) | ( | ) | |||||||||||
Balance as of December 31, 2019 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(In millions of dollars) | Unrealized Investment Gains (Losses) | Pension/Post-Retirement Plans Gains (Losses) | Foreign Currency Translation Adjustments | Total | |||||||||||
Balance as of January 1, 2018 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Cumulative effect of amended accounting standard | ( | ) | ( | ) | |||||||||||
Other comprehensive loss before reclassifications | ( | ) | ( | ) | ( | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||
Net current period other comprehensive loss | ( | ) | ( | ) | ( | ) | |||||||||
Balance as of December 31, 2018 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) |
For the Year Ended December 31, | 2019 | ||||||||
(In millions of dollars) | Pre-Tax | Tax (Credit) | Net of Tax | ||||||
Foreign currency translation adjustments | $ | $ | ( | ) | $ | ||||
Pension/post-retirement plans: | |||||||||
Amortization of (gains) losses included in net periodic pension cost: | |||||||||
Prior service credits (a) | ( | ) | ( | ) | ( | ) | |||
Net actuarial losses (a) | |||||||||
Effect of curtailment (a) | |||||||||
Effect of settlement (a) | |||||||||
Effect of remeasurement (a) | |||||||||
Plan Termination (a) | |||||||||
Subtotal | |||||||||
Net losses arising during period | ( | ) | ( | ) | ( | ) | |||
Foreign currency translation adjustments | ( | ) | ( | ) | ( | ) | |||
Pension/post-retirement plans losses | ( | ) | ( | ) | ( | ) | |||
Other comprehensive loss | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(a) These components of net periodic pension cost are included in other net benefits credits in the Consolidated Statements of Income. Tax on prior service gains and net actuarial losses is included in income tax expense. |
For the Year Ended December 31, | 2018 | ||||||||
(In millions of dollars) | Pre-Tax | Tax (Credit) | Net of Tax | ||||||
Foreign currency translation adjustments | $ | ( | ) | $ | $ | ( | ) | ||
Pension/post-retirement plans: | |||||||||
Amortization of (gains) losses included in net periodic pension cost: | |||||||||
Prior service credits (a) | ( | ) | ( | ) | ( | ) | |||
Net actuarial losses (a) | |||||||||
Effect of settlement (a) | |||||||||
Subtotal | |||||||||
Net losses arising during period | ( | ) | ( | ) | ( | ) | |||
Foreign currency translation adjustments | |||||||||
Other adjustments | ( | ) | ( | ) | ( | ) | |||
Pension/post-retirement plans losses | ( | ) | ( | ) | ( | ) | |||
Other comprehensive loss | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(a) These components of net periodic pension cost are included in other net benefits credits in the consolidated statements of income. Tax on prior service gains and net actuarial losses is included in income tax expense. |
For the Year Ended December 31, | 2017 | ||||||||
(In millions of dollars) | Pre-Tax | Tax (Credit) | Net of Tax | ||||||
Foreign currency translation adjustments | $ | $ | $ | ||||||
Unrealized investment gains | ( | ) | ( | ) | ( | ) | |||
Pension/post-retirement plans: | |||||||||
Amortization of (gains) losses included in net periodic pension cost: | |||||||||
Prior service credits (a) | ( | ) | ( | ) | |||||
Net actuarial losses (a) | |||||||||
Effect of curtailment (a) | ( | ) | ( | ) | |||||
Effect of settlement (a) | |||||||||
Subtotal | |||||||||
Net gains arising during period | |||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | ( | ) | |||
Other adjustments | |||||||||
Pension/post-retirement plans gains | |||||||||
Other comprehensive income | $ | $ | $ | ||||||
(a) These components of net periodic pension cost are included in other net benefits credits in the consolidated statements of income. Tax on prior service gains and net actuarial losses is included in income tax expense. |
(In millions of dollars) | December 31, 2019 | December 31, 2018 | |||||
Foreign currency translation adjustments (net of deferred tax asset of $14 in 2019 and net of deferred tax asset of $15 in 2018) | $ | ( | ) | $ | ( | ) | |
Net charges related to pension/post-retirement plans (net of deferred tax asset of $1,635 and $1,493 in 2019 and 2018, respectively) | ( | ) | ( | ) | |||
$ | ( | ) | $ | ( | ) |
• | February – MMA acquired Bouchard Insurance, Inc., a Florida-based full service agency and Employee Benefits Group, Inc., a Maryland-based independent insurance agency. |
• | April – MMA acquired Lovitt & Touche, Inc., an Arizona-based insurance agency and The Centurion Group, LLC, a Pennsylvania-based retirement consulting, asset management and benefit plan advisory firm. |
• | October – MMA acquired Benefits Reports Insurance Services, Inc., a Massachusetts-based independent insurance agency. |
Acquisitions for the Year-Ended December 31, 2019 | Total Acquisitions | ||||||||
(In millions) | JLT | Other | |||||||
Cash | $ | $ | $ | ||||||
Estimated fair value of deferred/contingent consideration | |||||||||
Total consideration | $ | $ | $ | ||||||
Allocation of purchase price: | |||||||||
Cash and cash equivalents | $ | $ | $ | ||||||
Accounts receivable, net | |||||||||
Other current assets | |||||||||
Fixed assets, net | |||||||||
Other intangible assets | |||||||||
Goodwill | |||||||||
Right of use assets | |||||||||
Deferred tax assets | |||||||||
Other assets | |||||||||
Total assets acquired | |||||||||
Current liabilities | |||||||||
Fiduciary liabilities | |||||||||
Less - fiduciary assets | ( | ) | ( | ) | |||||
Long-term debt | |||||||||
Long-term lease liability | |||||||||
Pension, post-retirement and post-employment liabilities | |||||||||
Liabilities for errors and omissions | |||||||||
Other liabilities | |||||||||
Total liabilities assumed | |||||||||
Non-controlling interests | |||||||||
Net assets acquired | $ | $ | $ |
• | Amounts of intangible assets, fixed assets, capitalized software assets and right-of-use assets, subject to finalization of valuation efforts; |
• | Amounts for contingencies, pending the finalization of the Company’s assessment of the portfolio of contingencies; |
• | Amounts for deferred tax assets and liabilities pending the finalization of valuations of the assets acquired, liabilities assumed and associated goodwill discussed below; and |
• | Amounts for income tax assets, receivables and liabilities, pending the filing of the acquired companies' pre-acquisition income tax returns and receipt of information from taxing authorities which may change certain estimates and assumptions used. |
Intangible assets through December 31, 2019 (In millions) | JLT | Other | Total | JLT Weighted Average Amortization Period | Other Weighted Average Amortization Period | |||||||||||
Customer relationships | $ | $ | $ | |||||||||||||
Other | ||||||||||||||||
$ | $ | $ |
• | February – MMA acquired Highsmith Insurance Agency, a North Carolina-based independent insurance brokerage firm. |
• | March – Marsh acquired Hoken Soken, Inc., a Japan-based insurance agency. |
• | May – Marsh acquired Mountlodge Limited, a Scotland-based independent insurance broker and Lorant Martínez Salas y Compañía Agente de Seguros y de Fianzas, S.A. de C.V., a Mexico-based multi-line insurance broker. |
• | June – MMA acquired Bleakley Insurance Services, a California-based provider of employee benefits solutions; Klein Agency, Inc., a Minnesota-based surety and property/casualty agency; and Insurance Associates, Inc., a Maryland-based independent insurance agency. |
• | August – Marsh acquired John L. Wortham & Son, L.P., a Houston-based independent insurance broker. |
• | October – MMA acquired Eustis Insurance, Inc., a Louisiana-based insurance agency. |
• | November – MMA acquired James P. Murphy & Associates, Inc., a Connecticut-based insurance agency. |
• | December – MMA acquired Otis-Magie Insurance Agency, Inc., a Minnesota-based insurance agency, and Marsh acquired Hector Insurance PCC Ltd, a U.K.-based captive management company. |
• | January – Oliver Wyman acquired Draw Ltd., a U.K.-based digital transformation agency. |
• | March – Oliver Wyman acquired 8Works Limited, a U.K.-based design thinking consultancy. |
• | May – Mercer acquired EverBe SAS, a France-based Workday implementer and advisory firm; and Evolve Intelligence Pty Ltd., an Australia-based talent strategy firm. |
• | June – Mercer acquired India Life Capital Private Ltd., an India-based investment advisor. |
• | November – Mercer acquired Induslynk Training Services Private Ltd., an India-based talent assessment company, Pavilion Financial Corp., a Canada-based investment services firm and Summit Strategies Inc., a Missouri-based investment consulting firm. |
Years Ended December 31, | |||||||||||
(In millions, except per share data) | 2019 | 2018 | 2017 | ||||||||
Revenue | $ | $ | $ | ||||||||
Net income attributable to the Company | $ | $ | $ | ||||||||
Basic net income per share attributable to the Company | $ | $ | $ | ||||||||
Diluted net income per share attributable to the Company | $ | $ | $ |
(In millions of dollars) | 2019 | 2018 | |||||
Balance as of January 1, as reported | $ | $ | |||||
Goodwill acquired (a) | |||||||
Other adjustments (b) | ( | ) | ( | ) | |||
Balance at December 31, | $ | $ |
(In millions of dollars) | 2019 | 2018 | |||||||||||||||||||||
Gross Cost | Accumulated Amortization | Net Carrying Amount | Gross Cost | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Customer relationships | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Other (a) | |||||||||||||||||||||||
Amortized intangibles | $ | $ | $ | $ | $ | $ |
For the Years Ending December 31, | |||
(In millions of dollars) | |||
2020 | $ | ||
2021 | |||
2022 | |||
2023 | |||
2024 | |||
Subsequent years | |||
$ |
For the Years Ended December 31, | |||||||||||
(In millions of dollars) | 2019 | 2018 | 2017 | ||||||||
Income before income taxes: | |||||||||||
U.S. | $ | $ | $ | ||||||||
Other | |||||||||||
$ | $ | $ | |||||||||
The expense (benefit) for income taxes is comprised of: | |||||||||||
Current – | |||||||||||
U.S. Federal | $ | $ | $ | ||||||||
Other national governments | |||||||||||
U.S. state and local | |||||||||||
Deferred – | |||||||||||
U.S. Federal | ( | ) | |||||||||
Other national governments | ( | ) | ( | ) | |||||||
U.S. state and local | ( | ) | |||||||||
( | ) | ||||||||||
Total income taxes | $ | $ | $ |
December 31, | |||||||
(In millions of dollars) | 2019 | 2018 | |||||
Deferred tax assets: | |||||||
Accrued expenses not currently deductible | $ | $ | |||||
Differences related to non-U.S. operations (a) | |||||||
Accrued U.S. retirement benefits | |||||||
Net operating losses (b) | |||||||
Income currently recognized for tax | |||||||
Other | |||||||
$ | $ |
Deferred tax liabilities: | |||||||
Differences related to non-U.S. operations | $ | $ | |||||
Depreciation and amortization | |||||||
Accrued retirement & postretirement benefits - non-U.S. operations | |||||||
Capitalized expenses currently recognized for tax | |||||||
Other | |||||||
$ | $ |
(a) | Net of valuation allowances of $ |
(b) | Net of valuation allowances of $ |
December 31, | |||||||
(In millions of dollars) | 2019 | 2018 | |||||
Balance sheet classifications: | |||||||
Deferred tax assets | $ | $ | |||||
Other liabilities | $ | $ |
For the Years Ended December 31, | 2019 | 2018 | 2017 | |||||
U.S. Federal statutory rate | % | % | % | |||||
U.S. state and local income taxes—net of U.S. Federal income tax benefit | ||||||||
Differences related to non-U.S. operations | ( | ) | ||||||
U.S. Tax Reform | ( | ) | ||||||
Equity compensation | ( | ) | ( | ) | ( | ) | ||
Other | ||||||||
Effective tax rate | % | % | % |
(In millions of dollars) | 2019 | 2018 | 2017 | ||||||||
Balance at January 1, | $ | $ | $ | ||||||||
Additions, based on tax positions related to current year | |||||||||||
Additions for tax positions of prior years | |||||||||||
Reductions for tax positions of prior years | ( | ) | ( | ) | |||||||
Settlements | ( | ) | ( | ) | |||||||
Lapses in statutes of limitation | ( | ) | ( | ) | ( | ) | |||||
Balance at December 31, | $ | $ | $ |
Tax Audit (Years) | |||||
Jurisdiction: | Initiated in 2019 | Ongoing | Concluded | ||
Canada | 2018 | 2013-2016 during 2019 | |||
France | 2017-2018 | 2011-2012 during 2018 | |||
Germany | 2013-2016 | 2009-2012 during 2018 | |||
Italy | 2016 | 2015 | |||
Singapore | 2014-2016 during 2019 | ||||
United Kingdom | 2017 | 2016 | 2014-2015 during 2018 |
Pension Benefits | Post-retirement Benefits | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Weighted average assumptions: | |||||||||||
Discount rate (for expense) | % | % | % | % | |||||||
Expected return on plan assets | % | % | |||||||||
Rate of compensation increase (for expense)* | % | % | |||||||||
Discount rate (for benefit obligation) | % | % | % | % | |||||||
Rate of compensation increase (for benefit obligation)* | % | % |
Combined U.S. and significant non-U.S. Plans | Pension | Post-retirement | |||||||||||||||||||||
For the Years Ended December 31, | Benefits | Benefits | |||||||||||||||||||||
(In millions of dollars) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Amortization of prior service (credit) cost | — | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||
Recognized actuarial loss (gain) | ( | ) | ( | ) | |||||||||||||||||||
Net periodic benefit (credit) cost | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||
Curtailment (loss) gain | ( | ) | |||||||||||||||||||||
Settlement loss | |||||||||||||||||||||||
Total (credit) cost | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | $ |
Combined U.S. and significant non-U.S. Plans | Pension Benefits | Post-retirement Benefits | |||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||
(In millions) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||
Compensation and benefits expense (Operating income) | $ | $ | $ | $ | $ | $ | |||||||||||||||
Other net benefit (credit) cost | ( | ) | ( | ) | ( | ) | |||||||||||||||
Total (credit) cost | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | $ |
U.S. Pension Benefits | U.S. Post-retirement Benefits | ||||||||||||||
(In millions of dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Change in benefit obligation: | |||||||||||||||
Benefit obligation at beginning of year | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Employee contributions | |||||||||||||||
Plan combination | |||||||||||||||
Actuarial (gain) loss | ( | ) | ( | ) | |||||||||||
Benefits paid | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Benefit obligation, December 31 | $ | $ | $ | $ | |||||||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at beginning of year | $ | $ | $ | $ | |||||||||||
Actual return on plan assets | ( | ) | |||||||||||||
Employer contributions | |||||||||||||||
Employee contributions | |||||||||||||||
Benefits paid | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Other | |||||||||||||||
Fair value of plan assets, December 31 | $ | $ | $ | $ | |||||||||||
Net funded status, December 31 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Amounts recognized in the consolidated balance sheets: | |||||||||||||||
Current liabilities | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Non-current liabilities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net liability recognized, December 31 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Amounts recognized in other comprehensive income (loss): | |||||||||||||||
Net actuarial (loss) gain | ( | ) | ( | ) | |||||||||||
Total recognized accumulated other comprehensive (loss) income, December 31 | $ | ( | ) | $ | ( | ) | $ | $ | |||||||
Cumulative employer contributions in excess of (less than) net periodic cost | ( | ) | ( | ) | |||||||||||
Net amount recognized in consolidated balance sheet | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Accumulated benefit obligation at December 31 | $ | $ | $ | $ |
U.S. Pension Benefits | U.S. Post-retirement Benefits | ||||||||||||||
(In millions of dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Reconciliation of net actuarial (loss) gain recognized in accumulated other comprehensive income (loss): | |||||||||||||||
Beginning balance | $ | ( | ) | $ | ( | ) | $ | $ | |||||||
Recognized as component of net periodic benefit cost (credit) | ( | ) | ( | ) | |||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||||||||||||||
Liability experience | ( | ) | ( | ) | |||||||||||
Asset experience | ( | ) | |||||||||||||
Total (loss) gain recognized as change in plan assets and benefit obligations | ( | ) | ( | ) | ( | ) | |||||||||
Net actuarial (loss) gain, December 31 | $ | ( | ) | $ | ( | ) | $ | $ |
For the Years Ended December 31, | U.S. Pension Benefits | U.S. Post-retirement Benefits | |||||||||||||||||||||
(In millions of dollars) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ | $ | $ | ( | ) | $ | $ | $ |
U.S. Pension Benefits | U.S. Post-retirement Benefits | ||||||
(In millions of dollars) | 2020 | 2020 | |||||
Net actuarial loss | $ | $ |
U.S. Pension Benefits | U.S. Post-retirement Benefits | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Weighted average assumptions: | |||||||||||
Discount rate (for expense) | % | % | % | % | |||||||
Expected return on plan assets | % | % | |||||||||
Discount rate (for benefit obligation) | % | % | % | % |
U.S. Plans only | Pension Benefits | Post-retirement Benefits | |||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||
(In millions of dollars) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Amortization of prior service cost | |||||||||||||||||||||||
Recognized actuarial loss (gain) | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Net periodic benefit (credit) cost | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | $ |
Non-U.S. Pension Benefits | Non-U.S. Post-retirement Benefits | ||||||||||||||
(In millions of dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Change in benefit obligation: | |||||||||||||||
Benefit obligation at beginning of year | $ | $ | $ | $ | |||||||||||
Service cost | |||||||||||||||
Interest cost | |||||||||||||||
Employee contributions | |||||||||||||||
Plan combination | |||||||||||||||
Actuarial loss (gain) | ( | ) | ( | ) | |||||||||||
Plan amendments | ( | ) | |||||||||||||
Effect of settlement | ( | ) | ( | ) | |||||||||||
Benefits paid | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Foreign currency changes | ( | ) | ( | ) | |||||||||||
Other | |||||||||||||||
Benefit obligation, December 31 | $ | $ | $ | $ | |||||||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at beginning of year | $ | $ | $ | $ | |||||||||||
Plan combination | |||||||||||||||
Actual return on plan assets | ( | ) | |||||||||||||
Effect of settlement | ( | ) | ( | ) | |||||||||||
Company contributions | |||||||||||||||
Employee contributions | |||||||||||||||
Benefits paid | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Foreign currency changes | ( | ) | |||||||||||||
Fair value of plan assets, December 31 | $ | $ | $ | $ | |||||||||||
Net funded status, December 31 | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
Amounts recognized in the consolidated balance sheets: | |||||||||||||||
Non-current assets | $ | $ | $ | $ | |||||||||||
Current liabilities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Non-current liabilities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net asset (liability) recognized, December 31 | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
Amounts recognized in other comprehensive (loss) income: | |||||||||||||||
Prior service credit | $ | ( | ) | $ | ( | ) | $ | $ | |||||||
Net actuarial loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total recognized accumulated other comprehensive (loss) income, December 31 | $ | ( | ) | $ | ( | ) | $ | $ | |||||||
Cumulative employer contributions in excess of (less than) net periodic cost | ( | ) | ( | ) | |||||||||||
Net asset (liability) recognized in consolidated balance sheets, December 31 | $ | $ | $ | ( | ) | $ | ( | ) | |||||||
Accumulated benefit obligation, December 31 | $ | $ | $ | $ |
Non-U.S. Pension Benefits | Non-U.S. Post-retirement Benefits | ||||||||||||||
(In millions of dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Reconciliation of prior service credit (cost) recognized in accumulated other comprehensive income (loss): | |||||||||||||||
Beginning balance | $ | ( | ) | $ | $ | $ | |||||||||
Recognized as component of net periodic benefit credit: | |||||||||||||||
Amortization of prior service credit | ( | ) | ( | ) | ( | ) | |||||||||
Total recognized as component of net periodic benefit credit | ( | ) | ( | ) | ( | ) | |||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||
Plan amendments | ( | ) | |||||||||||||
Exchange rate adjustments | ( | ) | ( | ) | |||||||||||
Prior service credit, December 31 | $ | ( | ) | $ | ( | ) | $ | $ |
Non-U.S. Pension Benefits | Non-U.S. Post-retirement Benefits | ||||||||||||||
(In millions of dollars) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Reconciliation of net actuarial (loss) gain recognized in accumulated other comprehensive (loss) income: | |||||||||||||||
Beginning balance | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Recognized as component of net periodic benefit cost: | |||||||||||||||
Amortization of net loss | |||||||||||||||
Effect of settlement | |||||||||||||||
Total recognized as component of net periodic benefit credit | |||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||||||||||||||
Liability experience | ( | ) | ( | ) | |||||||||||
Asset experience | ( | ) | |||||||||||||
Other | |||||||||||||||
Total amount recognized as change in plan assets and benefit obligations | ( | ) | ( | ) | ( | ) | |||||||||
Exchange rate adjustments | ( | ) | ( | ) | |||||||||||
Net actuarial loss, December 31 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
For the Years Ended December 31, | Non-U.S. Pension Benefits | Non-U.S. Post-retirement Benefits | |||||||||||||||||||||
(In millions of dollars) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) |
Non-U.S. Pension Benefits | Non-U.S. Post-retirement Benefits | ||||||
(In millions of dollars) | 2020 | 2020 | |||||
Prior service credit | $ | $ | ( | ) | |||
Net actuarial loss | |||||||
Projected cost | $ | $ | ( | ) |
Non-U.S. Pension Benefits | Non-U.S. Post-retirement Benefits | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Weighted average assumptions: | |||||||||||
Discount rate (for expense) | % | % | % | % | |||||||
Expected return on plan assets | % | % | |||||||||
Rate of compensation increase (for expense) | % | % | |||||||||
Discount rate (for benefit obligation) | % | % | % | % | |||||||
Rate of compensation increase (for benefit obligation) | % | % |
For the Years Ended December 31, | Non-U.S. Pension Benefits | Non-U.S. Post-retirement Benefits | |||||||||||||||||||||
(In millions of dollars) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
Service cost | $ | $ | $ | $ | — | $ | $ | ||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Amortization of prior service credit | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Recognized actuarial loss | |||||||||||||||||||||||
Net periodic benefit (credit) cost | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Settlement loss | |||||||||||||||||||||||
Curtailment (gain) loss | ( | ) | |||||||||||||||||||||
Total (credit) cost | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | $ |
(In millions of dollars) | 1 Percentage Point Increase | 1 Percentage Point Decrease | |||||
Effect on total of service and interest cost components | $ | $ | |||||
Effect on post-retirement benefit obligation | $ | $ | ( | ) |
For the Years Ended December 31, | Pension Benefits | Post-retirement Benefits | |||||||||||||
(In millions of dollars) | U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||
2020 | $ | $ | $ | $ | |||||||||||
2021 | $ | $ | $ | $ | |||||||||||
2022 | $ | $ | $ | $ | |||||||||||
2023 | $ | $ | $ | $ | |||||||||||
2024 | $ | $ | $ | $ | |||||||||||
2025-2029 | $ | $ | $ | $ |
Fair Value Measurements at December 31, 2019 | |||||||||||||||||||
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) | NAV | Total | ||||||||||||||
Common/collective trusts | $ | $ | $ | $ | $ | ||||||||||||||
Corporate obligations | — | ||||||||||||||||||
Corporate stocks | — | ||||||||||||||||||
Private equity/partnerships | — | — | — | ||||||||||||||||
Government securities | — | ||||||||||||||||||
Real estate | — | — | — | ||||||||||||||||
Short-term investment funds | — | ||||||||||||||||||
Company common stock | — | ||||||||||||||||||
Other investments | |||||||||||||||||||
Total investments | $ | $ | $ | $ | $ |
Fair Value Measurements at December 31, 2018 | |||||||||||||||||||
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) | NAV | Total | ||||||||||||||
Common/collective trusts | $ | $ | $ | $ | $ | ||||||||||||||
Corporate obligations | — | ||||||||||||||||||
Corporate stocks | — | ||||||||||||||||||
Private equity/partnerships | — | — | — | ||||||||||||||||
Government securities | — | ||||||||||||||||||
Real estate | — | — | — | ||||||||||||||||
Short-term investment funds | — | ||||||||||||||||||
Company common stock | — | ||||||||||||||||||
Other investments | — | ||||||||||||||||||
Total investments | $ | $ | $ | $ | $ |
Assets (In millions) | Fair Value, January 1, 2019 | Purchases | Sales | Unrealized Gain/ (Loss) | Realized Gain/ (Loss) | Exchange Rate Impact | Transfers in/(out) and Other (a) | Fair Value, December 31, 2019 | |||||||||||||||||||||||
Other investments | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Corporate stocks | |||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ |
Assets (In millions) | Fair Value, January 1, 2018 | Purchases | Sales | Unrealized Gain/ (Loss) | Realized Gain/ (Loss) | Exchange Rate Impact | Transfers in/(out) and Other | Fair Value, December 31, 2018 | |||||||||||||||||||||||
Other investments | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | $ | |||||||||||||||||
Corporate stocks | ( | ) | |||||||||||||||||||||||||||||
Corporate obligations | ( | ) | |||||||||||||||||||||||||||||
Total assets | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ |
2019 | 2018 | 2017 | ||||||
Risk-free interest rate | % | % | % | |||||
Expected life (in years) | ||||||||
Expected volatility | % | % | % | |||||
Expected dividend yield | % | % | % |
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value ($000) | |||||||||
Balance at January 1, 2019 | $ | |||||||||||
Granted | $ | |||||||||||
Exercised | ( | ) | $ | |||||||||
Forfeited | ( | ) | $ | |||||||||
Balance at December 31, 2019 | $ | 6.2 years | $ | |||||||||
Options vested or expected to vest at December 31, 2019 | $ | 6.1 years | $ | |||||||||
Options exercisable at December 31, 2019 | $ | 4.7 Years | $ |
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, 2019 | $ | $ | |||||||||
Granted | $ | $ | |||||||||
Vested | ( | ) | $ | ( | ) | $ | |||||
Forfeited | ( | ) | $ | ( | ) | $ | |||||
Non-vested balance at December 31, 2019 | $ | $ |
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 exchange-traded 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 (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 | |||||||||||||||||||||||||||
12/31/19 | 12/31/18 | 12/31/19 | 12/31/18 | 12/31/19 | 12/31/18 | 12/31/19 | 12/31/18 | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Financial instruments owned: | |||||||||||||||||||||||||||||||
Exchange traded equity securities (a) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Mutual funds(a) | |||||||||||||||||||||||||||||||
Money market funds(b) | |||||||||||||||||||||||||||||||
Other equity investment(a) | |||||||||||||||||||||||||||||||
Contingent purchase consideration asset(a) | |||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Fiduciary Assets: | |||||||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
U.S. Treasury Bills | |||||||||||||||||||||||||||||||
Total fiduciary assets measured at fair value | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Contingent purchase consideration liability(c) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Acquisition related derivative contracts | |||||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | $ | $ | $ | $ | $ | $ | $ |
(In millions) | 2019 | 2018 | |||||
Balance at January 1, | $ | $ | |||||
Additions | |||||||
Payments | ( | ) | ( | ) | |||
Revaluation Impact | |||||||
Change in fair value of acquisition related derivative contracts | ( | ) | |||||
Other (a) | ( | ) | ( | ) | |||
Balance at December 31, | $ | $ |
For the Twelve Months Ended September 30, | ||||||||||||
(In millions of dollars) | 2019 | 2018 | 2017 | |||||||||
Revenue | $ | $ | $ | |||||||||
Net investment income (a) | $ | $ | $ | |||||||||
Net income | $ | $ | $ |
As of September 30, | ||||||||
(In millions of dollars) | 2019 | 2018 | ||||||
Total assets | $ | $ | ||||||
Total liabilities | $ | $ | ||||||
Non-controlling interests | $ | $ |
For the Year Ended December 31, 2019 (In millions) | |||
Lease Cost: | |||
Operating lease cost | $ | ||
Short-term lease cost | |||
Variable lease cost | |||
Sublease income | ( | ) | |
Net lease cost | $ | ||
Other information: | |||
Operating cash outflows from operating leases | $ | ||
Right of use assets obtained in exchange for new operating lease liabilities | $ | ||
Weighted-average remaining lease term – real estate | |||
Weighted-average discount rate – real estate leases | % |
Payment Dates (In millions) | Real Estate Leases | ||
2020 | $ | ||
2021 | |||
2022 | |||
2023 | |||
2024 | |||
Subsequent years | |||
Total future lease payments | |||
Less: Imputed interest | ( | ) | |
Total | |||
Current lease liabilities | |||
Long-term lease liabilities | |||
Total lease liabilities | $ |
For the Years Ended December 31, | Gross Rental Commitments | Rentals from Subleases | Net Rental Commitments | ||||||||
(In millions of dollars) | |||||||||||
2019 | $ | $ | $ | ||||||||
2020 | $ | $ | $ | ||||||||
2021 | $ | $ | $ | ||||||||
2022 | $ | $ | $ | ||||||||
2023 | $ | $ | $ | ||||||||
Subsequent years | $ | $ | $ |
December 31, | |||||||
(In millions) | 2019 | 2018 | |||||
Short-term: | |||||||
Current portion of long-term debt | 1,215 | $ | |||||
Long-term: | |||||||
Senior notes – 2.35% due 2019 | |||||||
Senior notes – 2.35% due 2020 | |||||||
Senior notes – 3.50% due 2020 | |||||||
Senior notes – 4.80% due 2021 | |||||||
Senior notes – Floating rate due 2021 | |||||||
Senior notes – 2.75% due 2022 | |||||||
Senior notes – 3.30% due 2023 | |||||||
Senior notes – 4.05% due 2023 | |||||||
Senior notes – 3.50% due 2024 | |||||||
Senior notes – 3.875% due 2024 | |||||||
Senior notes – 3.50% due 2025 | |||||||
Senior notes – 1.349% due 2026 | |||||||
Senior notes – 3.75% due 2026 | |||||||
Senior notes – 4.375% due 2029 | |||||||
Senior notes – 1.979% due 2030 | |||||||
Senior notes – 5.875% due 2033 | |||||||
Senior notes – 4.75% due 2039 | |||||||
Senior notes – 4.35% due 2047 | |||||||
Senior notes – 4.20% due 2048 | |||||||
Senior notes – 4.90% due 2049 | |||||||
Mortgage – 5.70% due 2035 | |||||||
Other | |||||||
Less current portion | |||||||
$ | $ |
December 31, 2019 | December 31, 2018 | ||||||||||||||
(In millions of dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||
Short-term debt | $ | $ | $ | $ | |||||||||||
Long-term debt | $ | $ | $ | $ |
(In millions) | Severance | Real Estate Related Costs (a) | Information Technology (a) | Consulting and Other Outside Services (b) | Total | ||||||||||||||
Liability at 1/1/19 | $ | $ | $ | $ | $ | ||||||||||||||
2019 Charges | |||||||||||||||||||
Cash payments | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||
Non-cash charges | ( | ) | ( | ) | ( | ) | |||||||||||||
Liability at 12/31/19 | $ | $ | $ | $ | $ |
(In millions) | Balance at 1/1/18 | Amounts Accrued | Cash Paid | Other | Liability at 12/31/18 | Amounts Accrued | Cash Paid | Other | Balance at 12/31/19 | ||||||||||||||||||||||||||
Severance | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||
Future rent under non-cancelable leases and other costs | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
▪ | 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 | Depreciation and Amortization | Capital Expenditures | ||||||||||||||
2019 – | |||||||||||||||||||
Risk and Insurance Services | $ | (a) | $ | $ | (d) | $ | $ | ||||||||||||
Consulting | (b) | (e) | |||||||||||||||||
Total Segments | |||||||||||||||||||
Corporate/Eliminations | ( | ) | ( | ) | ( | ) | (c) | ||||||||||||
Total Consolidated | $ | $ | $ | $ | $ | ||||||||||||||
2018 – | |||||||||||||||||||
Risk and Insurance Services | $ | (a) | $ | $ | (d) | $ | $ | ||||||||||||
Consulting | (b) | (e) | |||||||||||||||||
Total Segments | |||||||||||||||||||
Corporate/Eliminations | ( | ) | ( | ) | ( | ) | (c) | ||||||||||||
Total Consolidated | $ | $ | $ | $ | $ | ||||||||||||||
2017 – | |||||||||||||||||||
Risk and Insurance Services | $ | (a) | $ | $ | (d) | $ | $ | ||||||||||||
Consulting | (b) | (e) | |||||||||||||||||
Total Segments | |||||||||||||||||||
Corporate/Eliminations | ( | ) | ( | ) | ( | ) | (c) | ||||||||||||
Total Consolidated | $ | $ | $ | $ | $ |
(a) | Includes inter-segment revenue of $ |
(b) | Includes inter-segment revenue of $ |
(c) | Corporate assets primarily include insurance recoverables, pension related assets, the owned portion of the Company headquarters building and intercompany eliminations. |
(d) | Includes equity method investments of $ |
(e) | Includes equity method investments of $ |
For the Years Ended December 31, | |||||||||||
(In millions of dollars) | 2019 | 2018 | 2017 | ||||||||
Risk and Insurance Services | |||||||||||
Marsh | $ | $ | $ | ||||||||
Guy Carpenter | |||||||||||
Total Risk and Insurance Services | |||||||||||
Consulting | |||||||||||
Mercer | |||||||||||
Oliver Wyman Group | |||||||||||
Total Consulting | |||||||||||
Total Segments | |||||||||||
Corporate/Eliminations | ( | ) | ( | ) | ( | ) | |||||
Total | $ | $ | $ |
For the Years Ended December 31, | |||||||||||
(In millions of dollars) | 2019 | 2018 | 2017 | ||||||||
Revenue | |||||||||||
United States | $ | $ | $ | ||||||||
United Kingdom | |||||||||||
Continental Europe | |||||||||||
Asia Pacific | |||||||||||
Other | |||||||||||
Corporate/Eliminations | ( | ) | ( | ) | ( | ) | |||||
Total | $ | $ | $ |
For the Years Ended December 31, | |||||||||||
(In millions of dollars) | 2019 | 2018 | 2017 | ||||||||
Fixed Assets, Net | |||||||||||
United States | $ | $ | $ | ||||||||
United Kingdom | |||||||||||
Continental Europe | |||||||||||
Asia Pacific | |||||||||||
Other | |||||||||||
Total | $ | $ | $ |
• | We tested the effectiveness of internal controls related to the determination of the liability for E&O, including controls over the projection of ultimate settlement values of reported and unreported claims determined through internal actuarial analyses and management’s independent review of case level estimates provided by inside and outside counsel, as applicable. |
• | For selected E&O matters, we made inquiries of the Company’s inside and outside counsel, as applicable, regarding the status of these matters and likelihood of settlement. |
• | We compared total incurred losses and current case estimates as of the balance sheet date to amounts reported in prior periods to evaluate trends and developments in reported cases. |
• | With the assistance of our actuarial specialists, we evaluated the reasonableness of the assumptions and methodologies involved in the development of the liability for E&O by: |
– | Testing the underlying data that served as the basis for the actuarial analysis, including historical claims, to evaluate whether the inputs to the actuarial estimate were reasonable. |
– | Comparing management’s prior-year assumptions of expected development and ultimate loss to actual amounts incurred during the current year to identify potential bias in the determination of the liability for E&O. |
– | Developing a range of independent estimates and comparing those to the liability for E&O recorded by the Company. |
• | We tested the effectiveness of internal controls over the assumptions related to the determination of forecasted future cash flows, selection of the discount rates and the valuation methodology used. |
• | With the assistance of our valuation specialists, we evaluated the reasonableness of the determination of the forecasted future cash flows, discount rates and valuation methodology by: |
– | Testing the source information underlying the determination of the discount rates and testing the mathematical accuracy of the calculations. |
– | Developing a range of independent estimates of discount rates for each selected customer relationship intangible asset and comparing those to the respective discount rates utilized by management. |
– | Evaluating the reasonableness of the estimated economic life of each selected customer relationship intangible asset. |
• | When assessing the reasonableness of assumptions related to future cash flows for each selected customer relationship intangible asset, specifically the assumptions relating to revenue growth, attrition rates and earnings margins, we evaluated whether the assumptions used were reasonable considering the past performance of the acquired company and the Company’s historical experience related to similar acquisitions. |
• | We evaluated whether the estimated future cash flows were consistent with evidence obtained in other areas of the audit, such as assumptions utilized by the Company in the determination of their budget. |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(In millions, except per share figures) | |||||||||||||||
2019: | |||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||
Operating income | $ | $ | $ | $ | |||||||||||
Net income before non-controlling interests | $ | $ | $ | $ | |||||||||||
Net income attributable to the Company | $ | $ | $ | $ | |||||||||||
Basic Per Share Data: | |||||||||||||||
Net income attributable to the Company | $ | $ | $ | $ | |||||||||||
Diluted Per Share Data: | |||||||||||||||
Net income attributable to the Company | $ | $ | $ | $ | |||||||||||
Dividends Paid Per Share | $ | $ | $ | $ | |||||||||||
2018: | |||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||
Operating income | $ | $ | $ | $ | |||||||||||
Net income before non-controlling interests | $ | $ | $ | $ | |||||||||||
Net income attributable to the Company | $ | $ | $ | $ | |||||||||||
Basic Per Share Data: | |||||||||||||||
Net income attributable to the Company | $ | $ | $ | $ | |||||||||||
Diluted Per Share Data: | |||||||||||||||
Net income attributable to the Company | $ | $ | $ | $ | |||||||||||
Dividends Paid Per Share | $ | $ | $ | $ |
(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) |
(2.2) |
(2.3) |
(3.1) |
(3.2) |
(4.1) |
(4.2) |
(4.3) |
(4.4) |
(4.5) |
(4.6) |
(4.7) |
(4.8) |
(4.9) |
(4.10) |
(4.11) |
(4.12) |
(4.13) |
(4.14) |
(4.15) |
(4.16) |
(10.1) |
(10.2) |
(10.3) |
(10.4) |
(10.5) |
(10.6) |
(10.7) |
(10.8) |
(10.9) |
(10.10) |
(10.11) |
(10.12) |
(10.13) |
(10.14) |
(10.15) |
(10.16) |
(10.17) |
(10.18) |
(10.19) |
(10.20) |
(10.21) |
(10.22) |
(10.23) |
(10.24) |
(10.25) |
(10.26) |
(10.27) |
(10.28) |
(10.29) |
(10.30) |
(10.31) |
(10.32) |
(10.33) |
(10.34) |
(10.35) |
(10.36) |
(10.37) |
(10.38) |
(10.39) |
(10.40) |
(10.41) |
(10.42) |
(10.43) |
(10.44) |
(10.45) |
(10.46) |
(10.47) |
(10.48) |
(10.49) |
(10.50) |
(10.51) |
(10.52) |
(10.53) |
(10.54) |
(10.55) |
(10.56) |
(10.57) |
(10.58) |
(10.59) |
(10.60) |
(10.61) |
(10.62) |
(10.63) |
(10.64) |
(10.65) |
(10.66) |
(10.67) |
(10.68) |
(10.69) |
(10.70) |
(10.71) |
(10.72) |
(10.73) |
(10.74) |
(10.75) |
(10.76) |
(10.77) |
(10.78) |
(10.79) |
(10.80) |
(10.81) |
(10.82) |
(10.83) |
(10.84) |
(10.85) |
(10.86) |
(10.87) |
(10.88) |
(10.89) |
(10.90) |
(10.91) |
(10.92) |
(14.1) |
(21.1) |
(23.1) |
(24.1) | Power of Attorney (included on signature page) |
(31.1) |
(31.2) |
(32.1) |
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 |
104. | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
MARSH & McLENNAN COMPANIES, INC. | ||||
Dated: | February 20, 2020 | 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 20, 2020 | ||
/S/ MARK C. MCGIVNEY Mark C. McGivney | Chief Financial Officer | February 20, 2020 | ||
/S/ STACY M. MILLS Stacy M. Mills | Vice President & Controller (Chief Accounting Officer) | February 20, 2020 | ||
/S/ ANTHONY K. ANDERSON Anthony K. Anderson | Director | February 20, 2020 | ||
/S/ OSCAR FANJUL Oscar Fanjul | Director | February 20, 2020 | ||
/S/ H. EDWARD HANWAY H. Edward Hanway | Director | February 20, 2020 | ||
/S/ DEBORAH C. HOPKINS Deborah C. Hopkins | Director | February 20, 2020 | ||
/S/ TAMARA INGRAM Tamara Ingram | Director | February 20, 2020 | ||
/S/ STEVEN A. MILLS Steven A. Mills | Director | February 20, 2020 | ||
/S/ BRUCE P. NOLOP Bruce P. Nolop | Director | February 20, 2020 | ||
/S/ MARC D. OKEN Marc D. Oken | Director | February 20, 2020 | ||
/S/ MORTON O. SCHAPIRO Morton O. Schapiro | Director | February 20, 2020 | ||
/S/ LLOYD M. YATES Lloyd M. Yates | Director | February 20, 2020 | ||
/S/ R. DAVID YOST R. David Yost | Director | February 20, 2020 |
• | convert the stock into any other security; |
• | have the stock redeemed; or |
• | purchase additional stock or to maintain their proportionate ownership interest |
• | for any breach of the director’s legal duty to act in the best interests of the Company and its stockholders; |
• | for acts or omissions by the director with dishonest intentions or which involve intentional misconduct or an intentional violation of the law; |
• | for declaring dividends or authorizing the purchase or redemption of shares in violation of Delaware law; or |
• | for transactions where the director derived an improper personal benefit. |
• | mergers of the Company or any of its subsidiaries with a 10% stockholder, |
• | sales of all or any substantial part of the assets of the Company and its subsidiaries to a 10% stockholder, |
• | sales of all or any substantial part of the assets of a 10% stockholder to the Company, |
• | the issuance or delivery of securities of the Company or any of its subsidiaries to a 10% stockholder, or of securities of a 10% stockholder to the Company, |
• | any substantial loan, advance or guarantee, pledge or other financial assistance provided by the Company or any of its subsidiaries to a 10% stockholder, |
• | the adoption of a plan for the voluntary dissolution or liquidation of the Company or amendment to the Company’s amended and restated bylaws, |
• | any reclassification of securities or recapitalization of the Company or other transaction which increases a 10% stockholder’s proportionate share of any class of the Company’s capital stock, or |
• | any agreement or other arrangement to do any of the foregoing. |
• | beneficially owns or controls, directly or indirectly, 10% or more of the voting stock of the Company or has announced a plan or intention to acquire such securities, or |
• | is an affiliate or associate of the Company and at any time within two years prior to the date in question was the beneficial owner of 10% or more of the voting stock of the Company. |
• | the Company and any of its subsidiaries, and |
• | any profit-sharing, employee stock ownership or other employee benefit plan of the Company or any subsidiary, or trustees or fiduciaries for these plans. |
• | is not related to a 10% stockholder, and was a member of the board of directors prior to the time that the relevant 10% stockholder became a 10% stockholder, or |
• | is a successor to an unbiased director, who is not related to a 10% stockholder and was nominated by a majority of unbiased directors. |
• | a merger with, disposition of significant assets to or receipt of disproportionate financial benefits by the interested stockholder, and |
• | any other transaction that would increase the interested stockholder’s proportionate ownership of any class or series of the Company’s capital stock. |
• | prior to the time that any stockholder became an interested stockholder, the board of directors approved either the business combination or the transaction in which such stockholder acquired 15% or more of the Company’s outstanding voting stock, or |
• | the interested stockholder owns at least 85% of the outstanding voting stock of the Company as a result of the transaction in which such stockholder acquired 15% or more of the Company’s outstanding voting stock. Shares held by persons who are both directors and officers or by some types of employee stock plans are not counted as outstanding when making this calculation. |
Company Name | Country | |
1 | 8WORKS INC. | United States |
2 | 8WORKS LTD | United Kingdom |
3 | A. Constantinidi & CIA. S.C. | Uruguay |
4 | A.C.N. 000 951 146 Pty Limited | Australia |
5 | A.C.N. 001 572 961 Pty Limited | Australia |
6 | A.C.N. 076 935 683 Pty Limited | Australia |
7 | A.C.N. 102 322 574 Pty Limited | Australia |
8 | Access Equity Enhanced Fund GP, LLC | United States |
9 | ACE Insurance Agents Limited | Saudi Arabia |
10 | ACE Insurance and Reinsurance Brokers Limited | Saudi Arabia |
11 | ACE Insurance Consultants Limited | Saudi Arabia |
12 | Admiral Holdings Limited | United Kingdom |
13 | AFCO Premium Acceptance, Inc. | United States |
14 | AFCO Premium Credit LLC | United States |
15 | Agnew Higgins Pickering & Co. (Bermuda) Ltd | Bermuda |
16 | Aldgate Investments Limited | Bermuda |
17 | Aldgate Trustees Ltd | United Kingdom |
18 | Alexander Forbes Group Holdings Limited | South Africa |
19 | Alpha Consultants Limited | New Zealand |
20 | Alta SA | Chile |
21 | Altius Real Assets (GP) LLC | United States |
22 | Amal Insurance Brokers Limited (in liquidation) | Saudi Arabia |
23 | Anda Insurance Agencies Pte Ltd | Singapore |
24 | AssetVal Pty Ltd | Australia |
25 | Assur Conseils Marsh S.A. | Senegal |
26 | Assurance Capital Corporation | United States |
27 | Assurance Services Corporation | United States |
28 | Australian Insurance Brokers Pty Ltd | Australia |
29 | Australian World Underwriters Pty Ltd. | Australia |
30 | Barney & Barney Orange County, LLC | United States |
31 | BBPS Limited | United Kingdom |
32 | Beaumonts (Leeds) Limited (in liquidation) | United Kingdom |
33 | Beaumonts Insurance Brokers Limited (in liquidation) | United Kingdom |
34 | Beaumonts Insurance Services Limited | United Kingdom |
35 | Beneficios Integrales Oportunos SA | Colombia |
36 | Benefitfocus, Inc. | United States |
37 | Blue Marble Micro Limited | United Kingdom |
38 | Blue Marble Microinsurance, Inc. | United States |
39 | Bluefin Insurance Group Limited | United Kingdom |
40 | Bluefin Insurance Services Limited | United Kingdom |
41 | Boulder Claims, LLC | United States |
42 | Bowring (Bermuda) Investments Ltd. | Bermuda |
43 | Bowring Marine Limited | United Kingdom |
44 | Bowring Marsh (Bermuda) Ltd. | Bermuda |
45 | Bowring Marsh (Hong Kong) Limited | Hong Kong |
46 | Bowring Marsh Asia Pte. Ltd. | Singapore |
47 | Bowring Marsh Corretora de Resseguros Ltda. | Brazil |
48 | Bowring Marsh Limited | United Kingdom |
49 | Broderick Piller Pty Ltd | Australia |
50 | Broker 2 Broker Limited | United Kingdom |
51 | BuildPay, LLC | United States |
52 | Burke Ford Trustees (Leicester) Limited | United Kingdom |
53 | C.T. Bowring Limited | United Kingdom |
54 | Carpenter Marsh Fac Chile Corredores de Reaseguros Limitada | Chile |
55 | Carpenter Marsh Fac Colombia Corredores de Reaseguros S.A. | Colombia |
56 | Carpenter Marsh Fac Peru Corredores de Reaseguros S.A.C. | Peru |
57 | Carpenter Marsh Fac Re LLC | United States |
58 | Carpenter Turner Cyprus Ltd | Cyprus |
59 | Carpenter Turner S.A. | Greece |
60 | Cascade International Holdings C.V. | Netherlands |
61 | Cascade Regional Holdings Limited | United Kingdom |
62 | Central Insurance Services Limited | United Kingdom |
63 | Charter Risk Management Services LLC | United States |
64 | Chartwell Healthcare Limited | United Kingdom |
65 | Chronos Insurance Brokers Pty Limited | Australia |
66 | Claims and Recovery Management (Australia) Pty Limited | Australia |
67 | Clark Thomson Insurance Brokers Limited | United Kingdom |
68 | Client Provide Limited | New Zealand |
69 | CMC-Belgibo NV | Belgium |
70 | Colombian Insurance Broking Wholesale Limited | Cayman Islands |
71 | Consultores 2020 C.A. | Venezuela, Bolivarian Republic of |
72 | CPRM Limited | United Kingdom |
73 | CPSG Partners, LLC | United States |
74 | Cronin & Co Insurance Services Limited | United Kingdom |
75 | DeLima Marsh S.A. - Los Corredores de Seguros S.A. | Colombia |
76 | Dovetail Insurance Corp. | United States |
77 | Dovetail Managing General Agency Corporation | United States |
78 | Dovetail Technology Service India Private Limited | India |
79 | Draw Connect Limited | United Kingdom |
80 | Draw Create Limited | United Kingdom |
81 | Draw Group London Limited | United Kingdom |
82 | DVA - Deutsche Verkehrs-Assekuranz-Vermittlungs GmbH | Germany |
83 | Eagle & Crown Limited | Bermuda |
84 | Echelon Australia Pty Limited | Australia |
85 | Echelon Claims Consultants Sdn Bhd | Malaysia |
86 | Echelon New Zealand Limited | New Zealand |
87 | EnBW Versicherungs Vermittlung GmbH | Germany |
88 | Encompass Insurance Agency Pty Ltd. | Australia |
89 | English Pension Trustees Limited | United Kingdom |
90 | Epsilon (US) Insurance Company | United States |
91 | Epsilon Insurance Company, Ltd. | Cayman Islands |
92 | everBe SAS | France |
93 | Evolution Management Ltd | Bermuda |
94 | Exchange Insurance Services Limited (in liquidation) | United Kingdom |
95 | Exmoor Management Company Limited | Bermuda |
96 | Faulkner & Flynn, LLC | United States |
97 | Freedom Trust Services Limited | Ireland |
98 | Gama Consultores Associados Ltda. | Brazil |
99 | GC Genesis LLC | United States |
100 | GCube Insurance Services Inc | United States |
101 | GCube Underwriting Limited | United Kingdom |
102 | Gem Insurance Company Limited | Bermuda |
103 | Global Premium Finance Company | United States |
104 | Gracechurch Trustees Limited | United Kingdom |
105 | GrECo International Holding AG | Austria |
106 | Gresham Pension Trustees Limited | United Kingdom |
107 | Group Promoters Pty Limited | Australia |
108 | Guy Carpenter & Cia (Mexico) S.A. de C.V. | Mexico |
109 | Guy Carpenter & Cia., S.A. | Spain |
110 | Guy Carpenter & Co. Labuan Ltd. | Malaysia |
111 | Guy Carpenter & Company AB | Sweden |
112 | Guy Carpenter & Company Corredores de Reaseguros Limitada | Chile |
113 | Guy Carpenter & Company Corretora de Resseguros Ltda. | Brazil |
114 | Guy Carpenter & Company GmbH | Germany |
115 | Guy Carpenter & Company Limited | United Kingdom |
116 | Guy Carpenter & Company Limited | New Zealand |
117 | Guy Carpenter & Company Participacoes Ltda. | Brazil |
118 | Guy Carpenter & Company Peru Corredores de Reaseguros S.A. | Peru |
119 | Guy Carpenter & Company Private Limited | Singapore |
120 | Guy Carpenter & Company Proprietary Limited | South Africa |
121 | Guy Carpenter & Company Pty. Ltd. | Australia |
122 | Guy Carpenter & Company S.A. (Uruguay) | Uruguay |
123 | Guy Carpenter & Company S.r.l. | Italy |
124 | Guy Carpenter & Company, Limited | Hong Kong |
125 | Guy Carpenter & Company, LLC | United States |
126 | Guy Carpenter & Company, Ltd./Guy Carpenter & Compagnie, Ltee | Canada |
127 | Guy Carpenter & Company, S.A. | Belgium |
128 | Guy Carpenter & Company, S.A. | Argentina |
129 | Guy Carpenter & Company, S.A.S. | France |
130 | Guy Carpenter (Middle East) Limited | United Arab Emirates |
131 | Guy Carpenter Bermuda Ltd. | Bermuda |
132 | Guy Carpenter Broking, Inc. | United States |
133 | Guy Carpenter Colombia Corredores de Reaseguros Ltda. | Colombia |
134 | Guy Carpenter Insurance Brokers (Beijing) Co. Ltd. | China |
135 | Guy Carpenter Japan, Inc. | Japan |
136 | Guy Carpenter Mexico Intermediario de Reaseguro, S.A. de C.V. | Mexico |
137 | Guy Carpenter Reasurans Brokerligi Anonim Sirketi | Turkey |
138 | Hamilton Bond Limited | United Kingdom |
139 | Hansen International Limited | United States |
140 | HAPIP GP 2009, LLC | United States |
141 | HAPIP GP, LLC | United States |
142 | Hayward Aviation Limited | United Kingdom |
143 | HSBC Insurance Brokers International (Abu Dhabi) LLC (in liquidation) | United Arab Emirates |
144 | Industrial Risks Protection Consultants | Nigeria |
145 | Ingeseg S.A. | Argentina |
146 | Insbrokers Ltda. | Uruguay |
147 | INSIA a.s. | Czech Republic |
148 | INSIA Europe SE | Czech Republic |
149 | INSIA SK s.r.o. | Slovakia |
150 | InSolutions Limited | United Kingdom |
151 | Insurance Brokers of Nigeria Limited | Nigeria |
152 | Insure Direct - Jardine Lloyd Thompson Limited | United Arab Emirates |
153 | Insure Direct (Brokers) LLC | United Arab Emirates |
154 | Insure Direct (Brokers) LLC [BAHRAIN BRANCH] | Bahrain |
155 | InsurTech Alliance, LLC | United States |
156 | International Catastrophe Insurance Managers, LLC | United States |
157 | International Loss Control Services Limited | Ireland |
158 | International Risk Consultants (Asia) Limited | Hong Kong |
159 | Invercol Limited | Bermuda |
160 | IRC Asia Insurance Brokers Limited | Hong Kong |
161 | Irish Pensions Trust Limited | Ireland |
162 | Isosceles Insurance (Barbados) Limited | Barbados |
163 | Isosceles Insurance Company Limited | United States |
164 | Isosceles Insurance Ltd | Bermuda |
165 | Isosceles PCC Limited | Guernsey |
166 | J&H Marsh & McLennan Limited | Hong Kong |
167 | J.W. Terrill Benefit Administrators, Inc. | United States |
168 | Japan Affinity Marketing, Inc. | Japan |
169 | Jardine IBR Limited | Russian Federation |
170 | Jardine Lloyd Thompson (Proprietary) Limited | South Africa |
171 | Jardine Lloyd Thompson Asia Pte Ltd | Singapore |
172 | Jardine Lloyd Thompson Australia Pty Limited | Australia |
173 | Jardine Lloyd Thompson Canada Inc | Canada |
174 | Jardine Lloyd Thompson Group Ltd | United Kingdom |
175 | Jardine Lloyd Thompson India Private Limited | India |
176 | Jardine Lloyd Thompson India Private Limited (UK Branch Office) | United Kingdom |
177 | Jardine Lloyd Thompson Insurance and Reinsurance Brokers, Inc. | Philippines |
178 | Jardine Lloyd Thompson Insurance Consultants Limited | India |
179 | Jardine Lloyd Thompson Ireland Holdings Limited | Ireland |
180 | Jardine Lloyd Thompson Ireland Unlimited Company | Ireland |
181 | Jardine Lloyd Thompson Korea Limited | Korea, Republic of |
182 | Jardine Lloyd Thompson Limited | Vietnam |
183 | Jardine Lloyd Thompson Limited | New Zealand |
184 | Jardine Lloyd Thompson Limited | Thailand |
185 | Jardine Lloyd Thompson Limited | Hong Kong |
186 | Jardine Lloyd Thompson Limited | Taiwan |
187 | Jardine Lloyd Thompson Limited [Macao Branch] | Macao |
188 | Jardine Lloyd Thompson PCS (Dubai) Limited | United Arab Emirates |
189 | Jardine Lloyd Thompson PCS Limited | Hong Kong |
190 | Jardine Lloyd Thompson PCS Pte Ltd | Singapore |
191 | Jardine Lloyd Thompson PCS SA | Switzerland |
192 | Jardine Lloyd Thompson Private Limited | Singapore |
193 | Jardine Lloyd Thompson Pty Limited | Australia |
194 | Jardine Lloyd Thompson Sdn Bhd | Malaysia |
195 | Jardine Lloyd Thompson Valencia y Iragorri Corredores de Seguros SA | Colombia |
196 | Jardine Pension Trustees Ireland Limited | Ireland |
197 | Jardine Risk Consulting Co., Limited | China |
198 | Jardine ShunTak Insurance Brokers Limited | Hong Kong |
199 | Jardine ShunTak Insurance Brokers Limited [Macao Branch] | Macao |
200 | Jardines PF- Consultoria Em Gestao De Risco, Limitada | Angola |
201 | Jelf Commercial Finance Limited | United Kingdom |
202 | Jelf Financial Planning Limited | United Kingdom |
203 | Jelf Insurance Brokers Limited | United Kingdom |
204 | Jelf Limited | United Kingdom |
205 | Jelf Risk Management Limited | United Kingdom |
206 | Jelf Wellbeing Limited | United Kingdom |
207 | JI Holdings Limited | Mauritius |
208 | JIB Group Holdings Limited | United Kingdom |
209 | JIB Group Limited | United Kingdom |
210 | JIB Holdings (Pacific) Limited | Virgin Islands, British |
211 | JIB Overseas Holdings Limited | United Kingdom |
212 | JIB UK Holdings Limited | United Kingdom |
213 | JL Marine Insurance-Brokers GmbH & Co. KG | Germany |
214 | JLM Verwaltungs GmbH | Germany |
215 | JLT (Insurance Brokers) Limited | Russian Federation |
216 | JLT Actuaries and Consultants Limited | United Kingdom |
217 | JLT Advisory Limited | United Kingdom |
218 | JLT Affinity Colombia Solutions SAS | Colombia |
219 | JLT Agencies Limited | Hong Kong |
220 | JLT Asesorias Ltda | Chile |
221 | JLT Asia Holdings BV | Netherlands |
222 | JLT Asia Shared Services Sdn Bhd | Malaysia |
223 | JLT Belgibo | United Kingdom |
224 | JLT Benefit Consultants Limited | United Kingdom |
225 | JLT Benefit Solutions Limited | United Kingdom |
226 | JLT Benefit Solutions SA (Pty) Ltd | South Africa |
227 | JLT Bermuda Ltd | Bermuda |
228 | JLT Brasil Holdings Participacoes Ltd | Brazil |
229 | JLT Chile Holdings SpA | Chile |
230 | JLT Colombia Retail Limited | United Kingdom |
231 | JLT Colombia Wholesale Limited | United Kingdom |
232 | JLT Consultants & Actuaries Limited | United Kingdom |
233 | JLT do Brasil Corretagem de Seguros Ltda | Brazil |
234 | JLT EB Holdings Limited | United Kingdom |
235 | JLT EB Services Limited | United Kingdom |
236 | JLT Employee Benefits Holding Company (PTY) LTD | South Africa |
237 | JLT Employee Benefits SA (Pty) Ltd | South Africa |
238 | JLT Financial Planning Limited | Ireland |
239 | JLT France Holdings | France |
240 | JLT Group Services Pty Limited | Australia |
241 | JLT Holdings (Barbados) Ltd | Barbados |
242 | JLT Holdings (NZ) Limited | New Zealand |
243 | JLT Independent Insurance Brokers Private Limited | India |
244 | JLT Insurance Agencies Limited | Hong Kong |
245 | JLT Insurance Brokers Co., Limited | China |
246 | JLT Insurance Brokers Co., Limited ( Shanghai Branch) | China |
247 | JLT Insurance Brokers Co., Limited (Beijing Branch) | China |
248 | JLT Insurance Brokers Co., Limited (Guangzhou Branch) | China |
249 | JLT Insurance Brokers Ireland Limited | Ireland |
250 | JLT Insurance Brokers SA | Argentina |
251 | JLT Insurance Group Holdings Ltd | United Kingdom |
252 | JLT Insurance Management Malta Limited | Malta |
253 | JLT Intellectual Property [UK Branch] | United Kingdom |
254 | JLT Intellectual Property Limited | Ireland |
255 | JLT Interactive Pte. Ltd. | Singapore |
256 | JLT Investment Management Limited | United Kingdom |
257 | JLT LATAM (Southern Cone) Wholesale Limited | United Kingdom |
258 | JLT Latin American Holdings Limited | United Kingdom |
259 | JLT Life Assurance Brokers Limited | Thailand |
260 | JLT Management Services Limited | United Kingdom |
261 | JLT Marine (Pty) Ltd | South Africa |
262 | JLT Mexico Holdings Limited | United Kingdom |
263 | JLT Mexico, Intermediario de Reaseguro, S.A. de C.V. | Mexico |
264 | JLT Netherlands BV | Netherlands |
265 | JLT Norway AS | Norway |
266 | JLT Pension Trustees Limited | United Kingdom |
267 | JLT Pensions Administration Holdings Limited | United Kingdom |
268 | JLT Pensions Administration Limited | United Kingdom |
269 | JLT Peru Reinsurance Solutions Limited | United Kingdom |
270 | JLT Peru Retail Limited | United Kingdom |
271 | JLT Peru Wholesale Limited | United Kingdom |
272 | JLT PLA | France |
273 | JLT QFM Services Limited | Ireland |
274 | JLT Re (French Branch) | France |
275 | JLT Re (Northern Europe) AB | Sweden |
276 | JLT Re Argentina Corredores de Reaseguros S.A.U. | Argentina |
277 | JLT RE Brasil, Administracao e Corretagem de Resseguros Ltda | Brazil |
278 | JLT Re Labuan Limited | Malaysia |
279 | JLT Re Limited | United Kingdom |
280 | JLT Re Pty Ltd | Australia |
281 | JLT Reinsurance Brokers GmbH | Germany |
282 | JLT Reinsurance Brokers Limited | United Kingdom |
283 | JLT Reinsurance Brokers Limited [French Branch] | France |
284 | JLT Risk Management Limited | Ireland |
285 | JLT Risk Solutions AB | Sweden |
286 | JLT Risk Solutions AB, Branch - Germany | Germany |
287 | JLT SA IB Holdings Company (Pty) Limited | South Africa |
288 | JLT SCK Affinity Administracao e Corretora de Seguros Ltda. | Brazil |
289 | JLT SCK Corretora e Administradora de Seguros | Brazil |
290 | JLT Secretaries Limited | United Kingdom |
291 | JLT Sigorta ve Reasürans Brokerliði A.Þ. | Turkey |
292 | JLT Singapore Holdings Pte. Ltd. | Singapore |
293 | JLT Specialty France | France |
294 | JLT Specialty Insurance Broker A/S | Denmark |
295 | JLT Specialty Limited | United Kingdom |
296 | JLT Specialty Limited [DUBAI BRANCH] | United Arab Emirates |
297 | JLT Specialty Pte. Ltd. | Singapore |
298 | JLT Towner Insurance Management (Anguilla) Limited | Anguilla |
299 | JLT Trust Services (Barbados) Ltd | Barbados |
300 | JLT Trustees (Southern) Limited | United Kingdom |
301 | JLT Trustees Limited | United Kingdom |
302 | JLT UK Investment Holdings Limited | United Kingdom |
303 | JLT Vantage Risk and Benefit Consulting Private Limited | India |
304 | JLT Wealth Management Limited | United Kingdom |
305 | JLTPCS Holdings Pte. Ltd. | Singapore |
306 | JMIB Holdings BV | Netherlands |
307 | John Lampier & Son Ltd | United Kingdom |
308 | Johnson & Higgins (Bermuda) Limited | Bermuda |
309 | Johnson & Higgins Limited | United Kingdom |
310 | JSL Securities, Inc. | United States |
311 | Kepler Associates Limited | United Kingdom |
312 | Kessler & Co AG | Switzerland |
313 | Kessler & Co Inc. | Liechtenstein |
314 | Kessler Consulting Inc. | Switzerland |
315 | Kessler Prevoyance Inc. | Switzerland |
316 | Key Underwriting Pty Limited | Australia |
317 | Lambert Brothers Holdings Limited | Hong Kong |
318 | Lambert Brothers Insurance Brokers (Employee Benefits) Limited | Hong Kong |
319 | Lambert Brothers Insurance Brokers (Hong Kong) Ltd | Hong Kong |
320 | Laterlife.com Limited (in liquidation) | United Kingdom |
321 | Lavaretus Underwriting AB | Sweden |
322 | Lavaretus Underwriting AB (BRANCH - Denmark) | Denmark |
323 | Libra Insurance Services Limited (in liquidation) | United Kingdom |
324 | Lloyd & Partners Limited | United Kingdom |
325 | Local Government Insurance Brokers Pty Limited | Australia |
326 | Lomond Macdonald Limited | United Kingdom |
327 | Lynch Insurance Brokers Limited | Barbados |
328 | M&M Vehicle, L.P. | United States |
329 | M.P. Bolshaw and Company Limited | United Kingdom |
330 | MAG JLT SpA | Italy |
331 | Mangrove Insurance Europe PCC Limited | Malta |
332 | Mangrove Insurance Solutions PCC Limited | Isle of Man |
333 | Mangrove Insurance Solutions, PCC | United States |
334 | Manoel Management Services Ltd | Malta |
335 | Marchant McKechnie Insurance Brokers Limited | United Kingdom |
336 | Marine, Aviation & General (London) Limited | United Kingdom |
337 | Marsh & McLennan (PNG) Limited | Papua New Guinea |
338 | Marsh & McLennan Agencies AS | Norway |
339 | Marsh & McLennan Agencies Limited | Hong Kong |
340 | Marsh & McLennan Agency A/S | Denmark |
341 | Marsh & McLennan Agency Limited | New Zealand |
342 | Marsh & McLennan Agency LLC | United States |
343 | Marsh & McLennan Agency Pty Ltd. | Australia |
344 | Marsh & McLennan Argentina SA Corredores de Reaseguros | Argentina |
345 | Marsh & McLennan Colombia S.A. | Colombia |
346 | Marsh & McLennan Companies Acquisition Funding Limited | United Kingdom |
347 | Marsh & McLennan Companies Acquisition Limited | United Kingdom |
348 | Marsh & McLennan Companies Asia Pacific Treasury Center Limited | United States |
349 | Marsh & McLennan Companies BVBA/SPRL | Belgium |
350 | Marsh & McLennan Companies Finance Center (Luxembourg) S.a.r.l. | Luxembourg |
351 | Marsh & McLennan Companies France S.A.S. | France |
352 | Marsh & McLennan Companies Holdings (Luxembourg) S.a.r.l. | Luxembourg |
353 | Marsh & McLennan Companies Regional Holdings S.a.r.l. | Luxembourg |
354 | Marsh & McLennan Companies Services B.V. | Netherlands |
355 | Marsh & McLennan Companies UK Limited | United Kingdom |
356 | Marsh & McLennan Companies, Inc. | United States |
357 | Marsh & McLennan Europe S.a.r.l. | Luxembourg |
358 | Marsh & McLennan Global Broking (Bermuda) Ltd. | Bermuda |
359 | Marsh & McLennan GP I, Inc. | United States |
360 | Marsh & McLennan Holding GmbH | Germany |
361 | Marsh & McLennan Holdings (Canada) ULC | Canada |
362 | Marsh & McLennan Holdings, Inc. | United States |
363 | Marsh & McLennan Innovation Centre Holdings II | Bermuda |
364 | Marsh & McLennan Innovation Centre Holdings S.a.r.l. | Luxembourg |
365 | Marsh & McLennan Innovation Centre Limited | Ireland |
366 | Marsh & McLennan Insurance Services Limited | Hong Kong |
367 | Marsh & McLennan Ireland Limited | Ireland |
368 | Marsh & McLennan Management Services (Bermuda) Limited | Bermuda |
369 | Marsh & McLennan Risk Capital Holdings, Ltd. | United States |
370 | Marsh & McLennan Servicios, S.A. De C.V. | Mexico |
371 | Marsh & McLennan Shared Services Canada Limited | Canada |
372 | Marsh & McLennan Shared Services Corporation | United States |
373 | Marsh & McLennan, Incorporated (for dissolution) | United States |
374 | Marsh (Bahrain) Company SPC | Bahrain |
375 | Marsh (Beijing) Risk Management Consulting Co., Ltd. | China |
376 | Marsh (China) Insurance Brokers Co., Ltd. | China |
377 | Marsh (Hong Kong) Limited | Hong Kong |
378 | Marsh (Insurance Brokers) LLP | Kazakhstan |
379 | Marsh (Insurance Services) Limited | United Kingdom |
380 | Marsh (Malawi) Limited | Malawi |
381 | Marsh (Middle East) Limited | United Kingdom |
382 | Marsh (Namibia) (Proprietary) Limited | Namibia |
383 | Marsh (Pty) Ltd | South Africa |
384 | Marsh (Risk Consulting) LLP | Kazakhstan |
385 | Marsh (Singapore) Pte. Ltd. | Singapore |
386 | Marsh A/S | Denmark |
387 | Marsh AB | Sweden |
388 | Marsh Advantage Insurance Holdings Pty Ltd | Australia |
389 | Marsh Advantage Insurance Pty Ltd. | Australia |
390 | Marsh Africa (Pty) Ltd | South Africa |
391 | Marsh AG | Switzerland |
392 | Marsh Argentina S.R.L. | Argentina |
393 | Marsh AS | Norway |
394 | Marsh Associates (Pty) Ltd | South Africa |
395 | Marsh Austria G.m.b.H. | Austria |
396 | Marsh Aviation Insurance Broking Pty Ltd (for dissolution) | Australia |
397 | Marsh B.V. | Netherlands |
398 | Marsh Botswana (Proprietary) Limited | Botswana |
399 | Marsh Brockman y Schuh Agente de Seguros y de Fianzas, S.A. de C.V. | Mexico |
400 | Marsh Broker de Asigurare-Reasigurare S.R.L. | Romania |
401 | Marsh Broker Japan, Inc. | Japan |
402 | Marsh Brokers (Hong Kong) Limited | Hong Kong |
403 | Marsh Brokers Limited | United Kingdom |
404 | Marsh Canada Limited/Marsh Canada Limitee | Canada |
405 | Marsh Company Management Services Cayman Ltd. | Cayman Islands |
406 | Marsh Compensation Technologies Administration (Pty) Ltd | South Africa |
407 | Marsh Corporate Services (Barbados) Limited | Barbados |
408 | Marsh Corporate Services Isle of Man Ltd | Isle of Man |
409 | Marsh Corporate Services Limited | United Kingdom |
410 | Marsh Corporate Services Malta Limited | Malta |
411 | Marsh Corretora de Seguros Ltda. | Brazil |
412 | Marsh d.o.o. Beograd | Serbia |
413 | Marsh d.o.o. za posredovanje u osiguranju | Croatia |
414 | Marsh Egypt LLC | Egypt |
415 | Marsh Emirates Consultancy LLC | United Arab Emirates |
416 | Marsh Emirates Insurance Brokerage LLC | United Arab Emirates |
417 | Marsh Employee Benefits Limited | Ireland |
418 | Marsh Employee Benefits Zimbabwe (Private) Ltd | Zimbabwe |
419 | Marsh EOOD | Bulgaria |
420 | Marsh Eurofinance B.V. | Netherlands |
421 | Marsh Europe S.A. | Belgium |
422 | Marsh FJC International Insurance Brokers Limited | Nigeria |
423 | Marsh for Insurance Services - Jordan | Jordan |
424 | Marsh For Insurance Services S.A.E. | Egypt |
425 | Marsh Franco Acra, S.A. | Dominican Republic |
426 | Marsh GmbH | Germany |
427 | Marsh GSC Servicos e Administracao de Seguros Ltda. | Brazil |
428 | Marsh Holding AB | Sweden |
429 | Marsh Holdings (Pty) Ltd | South Africa |
430 | Marsh i-Connect (Pty) Ltd | South Africa |
431 | Marsh India Insurance Brokers Private Limited | India |
432 | Marsh Insurance & Investments LLC | United States |
433 | Marsh Insurance and Reinsurance Brokers LLC | Azerbaijan |
434 | Marsh Insurance Brokers | United Kingdom |
435 | Marsh Insurance Brokers (Macao) Limited | Macao |
436 | Marsh Insurance Brokers (Malaysia) Sdn Bhd | Malaysia |
437 | Marsh Insurance Brokers (Private) Limited | Zimbabwe |
438 | Marsh Insurance Brokers AO | Russian Federation |
439 | Marsh Insurance Brokers Limited | Cyprus |
440 | Marsh Insurance Consulting Saudi Arabia (in liquidation) | Saudi Arabia |
441 | Marsh Intermediaries Inc. | United States |
442 | Marsh International Broking Holdings Limited | United Kingdom |
443 | Marsh International Holdings II, Inc. | United States |
444 | Marsh International Holdings, Inc. | United States |
445 | Marsh Investment B.V. | Netherlands |
446 | Marsh Ireland Brokers Limited | Ireland |
447 | Marsh Ireland Brokers Limited (UK Branch) | Ireland |
448 | Marsh Ireland Holdings Limited | Ireland |
449 | Marsh Israel (1999) Ltd. | Israel |
450 | Marsh Israel (Holdings) Ltd. | Israel |
451 | Marsh Israel Consultants Ltd. | Israel |
452 | Marsh Israel Insurance Agency Ltd. | Israel |
453 | Marsh Israel International Brokers Ltd. (in liquidation) | Israel |
454 | Marsh Japan, Inc. | Japan |
455 | Marsh JCS Inc. | United States |
456 | Marsh Kft. | Hungary |
457 | Marsh Kindlustusmaakler AS | Estonia |
458 | Marsh Korea, Inc. | Korea, Republic of |
459 | Marsh Limited | United Kingdom |
460 | Marsh Limited [Fiji] | Fiji |
461 | Marsh Limited [New Zealand] | New Zealand |
462 | Marsh Limited [PNG] | Papua New Guinea |
463 | Marsh LLC | United States |
464 | Marsh LLC [Ukraine] | Ukraine |
465 | Marsh LLC Insurance Brokers | Greece |
466 | Marsh Ltd. [Wisconsin] | United States |
467 | Marsh Management Services (Bahamas) Ltd. | Bahamas |
468 | Marsh Management Services (Barbados) Limited | Barbados |
469 | Marsh Management Services (Bermuda) Ltd. | Bermuda |
470 | Marsh Management Services (Dublin) Limited | Ireland |
471 | Marsh Management Services (Labuan) Limited | Malaysia |
472 | Marsh Management Services (MENA) Limited | United Arab Emirates |
473 | Marsh Management Services (USVI) Ltd. | United States |
474 | Marsh Management Services Cayman Ltd. | Cayman Islands |
475 | Marsh Management Services Guernsey Limited | Guernsey |
476 | Marsh Management Services Inc. | United States |
477 | Marsh Management Services Isle of Man Limited | Isle of Man |
478 | Marsh Management Services Luxembourg S.a.r.l. | Luxembourg |
479 | Marsh Management Services Malta Limited | Malta |
480 | Marsh Management Services Singapore Pte. Ltd. | Singapore |
481 | Marsh Management Services Sweden AB | Sweden |
482 | Marsh Marine & Energy AB | Sweden |
483 | Marsh Marine Nederland B.V. | Netherlands |
484 | Marsh Medical Consulting GmbH | Germany |
485 | Marsh Mercer Holdings (Australia) Pty Ltd | Australia |
486 | Marsh Nest Inc. | United States |
487 | Marsh Oman LLC | Oman |
488 | Marsh Oy | Finland |
489 | Marsh PB Co., Ltd. | Thailand |
490 | Marsh Philippines, Inc. | Philippines |
491 | Marsh Privat, A.I.E. | Spain |
492 | Marsh Private Client Life Insurance Services | United States |
493 | Marsh Pty. Ltd. | Australia |
494 | Marsh Qatar LLC | Qatar |
495 | Marsh RE S.A.C. Corredores de Reaseguros | Peru |
496 | Marsh Rehder Consultoria S.A. (MRC) | Peru |
497 | Marsh Rehder S.A. Corredores de Seguros | Peru |
498 | Marsh Resolutions Pty Limited | Australia |
499 | Marsh Risk and Consulting Services (Pty) Ltd | Namibia |
500 | Marsh Risk Consulting B.V. | Netherlands |
501 | Marsh Risk Consulting Limitada | Chile |
502 | Marsh Risk Consulting Ltda. | Colombia |
503 | Marsh Risk Consulting Services S.r.L. | Italy |
504 | Marsh Risk Consulting, S.L. | Spain |
505 | Marsh S.A. Corredores De Seguros | Chile |
506 | Marsh S.A.S. | France |
507 | Marsh S.p.A. | Italy |
508 | Marsh s.r.o. | Czech Republic |
509 | Marsh s.r.o. | Slovakia |
510 | Marsh SA [Argentina] | Argentina |
511 | Marsh SA [Belgium] | Belgium |
512 | Marsh SA [Luxembourg] | Luxembourg |
513 | Marsh SA [Uruguay] | Uruguay |
514 | Marsh Saldana Inc. | Puerto Rico |
515 | Marsh Saudi Arabia Insurance & Reinsurance Brokers | Saudi Arabia |
516 | Marsh Secretarial Services Limited | United Kingdom |
517 | Marsh Semusa, S.A. | Panama |
518 | Marsh Services Limited | United Kingdom |
519 | Marsh Services Spolka z.o.o. | Poland |
520 | Marsh SIA | Latvia |
521 | Marsh Sigorta ve Reasurans Brokerligi Anonim Sirketi | Turkey |
522 | Marsh Spolka z.o.o. | Poland |
523 | Marsh Szolgaltato Kft. | Hungary |
524 | Marsh Takaful Brokers (Malaysia) Sdn Bhd | Malaysia |
525 | Marsh Treasury Services (Dublin) Limited (in liquidation) | Ireland |
526 | Marsh Treasury Services Limited | United Kingdom |
527 | Marsh Tunisia S.a.r.l. | Tunisia |
528 | Marsh Uganda Limited | Uganda |
529 | Marsh UK Limited | United Kingdom |
530 | Marsh USA (India) Inc. | United States |
531 | Marsh USA Borrower LLC | United States |
532 | Marsh USA Inc. | United States |
533 | Marsh Venezuela C.A. Sociedad de Corretaje de Seguros | Venezuela, Bolivarian Republic of |
534 | Marsh Vietnam Insurance Broking Company Ltd | Vietnam |
535 | Marsh Zambia Limited | Zambia |
536 | Marsh Zimbabwe Holdings (Private) Limited | Zimbabwe |
537 | Marsh, Lda. | Portugal |
538 | Marsh, S.A. Mediadores de Seguros | Spain |
539 | Matthiessen Assurans AB | Sweden |
540 | Mercer (Argentina) S.A. | Argentina |
541 | Mercer (Australia) Pty Ltd | Australia |
542 | Mercer (Austria) GmbH | Austria |
543 | Mercer (Belgium) SA-NV | Belgium |
544 | Mercer (Canada) Limited/Mercer (Canada) Limitee | Canada |
545 | Mercer (China) Limited | China |
546 | Mercer (Colombia) Ltda. | Colombia |
547 | Mercer (Danmark) A/S | Denmark |
548 | Mercer (Finland) OY | Finland |
549 | Mercer (France) SAS | France |
550 | Mercer (Hong Kong) Limited | Hong Kong |
551 | Mercer (Ireland) Limited | Ireland |
552 | Mercer (Malaysia) Sdn. Bhd. | Malaysia |
553 | Mercer (N.Z.) Limited | New Zealand |
554 | Mercer (Nederland) B.V. | Netherlands |
555 | Mercer (Norge) AS | Norway |
556 | Mercer (Polska) Sp.z o.o. | Poland |
557 | Mercer (Portugal) Lda | Portugal |
558 | Mercer (Singapore) Pte. Ltd. | Singapore |
559 | Mercer (Sweden) AB | Sweden |
560 | Mercer (Taiwan) Ltd. | Taiwan |
561 | Mercer (Thailand) Ltd. | Thailand |
562 | Mercer (US) Inc. | United States |
563 | Mercer Administration Services (Australia) Pty Limited | Australia |
564 | Mercer Africa Limited | United Kingdom |
565 | MERCER ALTERNATIVES LIMITED | United Kingdom |
566 | Mercer Asesores de Seguros S.A. | Argentina |
567 | Mercer Asesores es Inversion Independientes S.A. de C.V. | Mexico |
568 | Mercer Broking Ltd. | Taiwan |
569 | Mercer Career, Unipessoal Lda | Portugal |
570 | Mercer Consultation (Quebec) Ltee. | Canada |
571 | Mercer Consulting (Australia) Pty Ltd | Australia |
572 | Mercer Consulting (Chile) Limitada | Chile |
573 | Mercer Consulting (France) SAS | France |
574 | Mercer Consulting (India) Private Limited | India |
575 | Mercer Consulting B.V. | Netherlands |
576 | Mercer Consulting Group, Inc. | United States |
577 | Mercer Consulting Holdings Sdn. Bhd. | Malaysia |
578 | Mercer Consulting Limited | United Kingdom |
579 | Mercer Consulting Middle East Limited | United Arab Emirates |
580 | Mercer Consulting Venezuela, C.A. | Venezuela, Bolivarian Republic of |
581 | Mercer Consulting, S.L.U. | Spain |
582 | Mercer Corredores de Seguros Limitada | Chile |
583 | Mercer Corretora de Seguros Ltda | Brazil |
584 | Mercer Danismanlik Anonim Sirketi | Turkey |
585 | Mercer Deutschland GmbH | Germany |
586 | Mercer Employee Benefits - Medicacao de Seguros Unipessoal Lda. | Portugal |
587 | Mercer Employee Benefits Limited | United Kingdom |
588 | Mercer Financial Advice (Australia) Pty Ltd | Australia |
589 | Mercer Financial Services Limited | Ireland |
590 | Mercer Financial Services Limited liability company | Morocco |
591 | Mercer Financial Services Middle East Limited | United Arab Emirates |
592 | Mercer Global Investments Europe Limited | Ireland |
593 | Mercer Global Investments Management Limited | Ireland |
594 | Mercer Health & Benefits (Singapore) Pte. Ltd. | Singapore |
595 | Mercer Health & Benefits Administration LLC | United States |
596 | Mercer Health & Benefits LLC | United States |
597 | Mercer Holdings, Inc. | United States |
598 | Mercer Holdings, Inc. [Philippines] | Philippines |
599 | Mercer HR Consulting Borrower LLC | United States |
600 | Mercer HR Services, LLC | United States |
601 | Mercer Human Resource Consulting Ltda | Brazil |
602 | Mercer Human Resource Consulting S.A. de C.V. | Mexico |
603 | Mercer ICC Limited | Guernsey |
604 | Mercer Investment Consulting Limited | Ireland |
605 | Mercer Investment Management (Shanghai) Co., Ltd | China |
606 | Mercer Investment Solutions (Singapore) Pte. Ltd. | Singapore |
607 | Mercer Investments (Australia) Limited | Australia |
608 | Mercer Investments (Hong Kong) Limited | Hong Kong |
609 | Mercer Investments (Japan), Ltd | Japan |
610 | Mercer Investments (New Zealand) Limited | New Zealand |
611 | Mercer Investments LLC | United States |
612 | Mercer Ireland Holdings Limited | Ireland |
613 | Mercer Italia Srl Socio Unico | Italy |
614 | Mercer Japan Ltd. | Japan |
615 | Mercer Korea Co. Ltd. | Korea, Republic of |
616 | Mercer Limited | United Kingdom |
617 | Mercer LLC | United States |
618 | Mercer Master Trustees Limited | Ireland |
619 | Mercer Mauritius Ltd. | Mauritius |
620 | Mercer MC Consulting Borrower LLC | United States |
621 | Mercer Oliver Wyman Holding B.V. | Netherlands |
622 | Mercer Outsourcing (Australia) Pty Ltd | Australia |
623 | Mercer Outsourcing, S.L.U. | Spain |
624 | Mercer Pensionsfonds AG | Germany |
625 | Mercer Pensionsraadgivning A/S | Denmark |
626 | Mercer Philippines, Inc. | Philippines |
627 | Mercer Private Investment Partners IV General Partner S.a.r.l. | Luxembourg |
628 | Mercer Private Markets Advisers (US) AG | Switzerland |
629 | Mercer Private Markets AG | Switzerland |
630 | Mercer Services Poland Sp. z.o.o. | Poland |
631 | Mercer Sigorta Brokerligi Anonim Sirketi | Turkey |
632 | Mercer South Africa (Pty) Limited | South Africa |
633 | Mercer Superannuation (Australia) Limited | Australia |
634 | Mercer Switzerland Inc. | Switzerland |
635 | Mercer System Services LLC | United States |
636 | Mercer Technology Acquisitions Limited | United Kingdom |
637 | Mercer Treuhand GmbH | Germany |
638 | Mercer Trust Company LLC | United States |
639 | Mercer Trustees Limited | Ireland |
640 | Mercer Trustees Limited | United Kingdom |
641 | Mercer WorkforcePro LLC | United States |
642 | Mercer, Agente de Seguros, S.A. de C.V. | Mexico |
643 | Mercury Insurance Services Pty Ltd | Australia |
644 | MM Risk Services Pty Ltd (for dissolution) | Australia |
645 | MMA Mid-Atlantic Employee LLC | United States |
646 | MMA Securities LLC | United States |
647 | MMB Consultores S.A. | Argentina |
648 | MMC (Singapore) Holdings Pte. Ltd. | Singapore |
649 | MMC 28 State Street Holdings Inc. | United States |
650 | MMC Borrower LLC | United States |
651 | MMC Brazilian Holdings B.V. | Netherlands |
652 | MMC Capital, Inc. | United States |
653 | MMC Cascade Regional Holdings, LLC | United States |
654 | MMC Finance (Australia) Limited | United Kingdom |
655 | MMC FINANCE (EUROPE) LIMITED | United Kingdom |
656 | MMC Finance (Singapore) Limited | United Kingdom |
657 | MMC FINANCE HOLDINGS LTD | United Kingdom |
658 | MMC France Holdings (Luxembourg) S.a.r.l. | Luxembourg |
659 | MMC GP III, Inc. | United States |
660 | MMC Group Services sp. z o.o. | Poland |
661 | MMC Holdings (Australia) Pty Ltd | Australia |
662 | MMC Holdings (New Zealand) ULC | New Zealand |
663 | MMC Holdings (UK) Limited | United Kingdom |
664 | MMC International Finance (Barbados) SRL | Barbados |
665 | MMC International Holdings LLC | United States |
666 | MMC International Limited | United Kingdom |
667 | MMC International Treasury Centre Limited | United Kingdom |
668 | MMC Middle East Holdings Limited | United Kingdom |
669 | MMC Poland Holdings B.V. | Netherlands |
670 | MMC Realty, Inc. | United States |
671 | MMC Regional Asia Holdings B.V. | Netherlands |
672 | MMC Regional Caribbean Holdings, Ltd. | Bermuda |
673 | MMC Regional Europe Holdings B.V. | Netherlands |
674 | MMC Regional LATAM Holdings B.V. | Netherlands |
675 | MMC Securities (Europe) Limited | United Kingdom |
676 | MMC Securities LLC | United States |
677 | MMC Treasury Holdings (UK) Limited | United Kingdom |
678 | MMC UK Group Limited | United Kingdom |
679 | MMC UK Pension Fund Trustee Limited | United Kingdom |
680 | MMOW Limited | United Kingdom |
681 | MMRC LLC | United States |
682 | Moola Systems Limited | United Kingdom |
683 | Mountlodge Limited | United Kingdom |
684 | MOW Holding LLC | United States |
685 | MPIP III GP LLC | United States |
686 | MPIP IV GP LLC | United States |
687 | MPIP V GP, LLC | United States |
688 | MPIP VI GP, LLC | United States |
689 | Muir Beddal (Zimbabwe) Limited | Zimbabwe |
690 | National Economic Research Associates, Inc. | United States |
691 | National Economic Research Associates, Inc. | United States |
692 | NERA Australia Pty. Ltd. | Australia |
693 | NERA do Brasil Ltda. (for dissolution) | Brazil |
694 | NERA Economic Consulting GmbH | Germany |
695 | NERA Economic Consulting Limited | New Zealand |
696 | NERA S.R.L. | Italy |
697 | NERA SAS | France |
698 | NERA UK Limited | United Kingdom |
699 | NetComp Insurance Corp. | United States |
700 | Neuburger Noble Lowndes GmbH | Germany |
701 | Normandy Reinsurance Company Limited | Bermuda |
702 | Northern Alliance Brokers Limited (in liquidation) | United Kingdom |
703 | Oliver Wyman (Bermuda) Limited | Bermuda |
704 | Oliver Wyman (Hong Kong) Limited | Hong Kong |
705 | Oliver Wyman AB | Sweden |
706 | Oliver Wyman Actuarial Consulting, Inc. | United States |
707 | Oliver Wyman AG | Switzerland |
708 | Oliver Wyman B.V. | Netherlands |
709 | Oliver Wyman Consulting (Shanghai) Ltd | China |
710 | Oliver Wyman Consultoria em Estrategia de Negocios Ltda. | Brazil |
711 | Oliver Wyman Energy Consulting Limited | United Kingdom |
712 | Oliver Wyman FZ-LLC | United Arab Emirates |
713 | Oliver Wyman Group KK | Japan |
714 | Oliver Wyman Limited | United Kingdom |
715 | Oliver Wyman Limited Liability Company | Greece |
716 | Oliver Wyman LLC | Russian Federation |
717 | Oliver Wyman Ltd. | Korea, Republic of |
718 | Oliver Wyman Pte. Ltd. | Singapore |
719 | Oliver Wyman Pty. Ltd. | Australia |
720 | Oliver Wyman S.A.S. | Colombia |
721 | Oliver Wyman S.L. | Spain |
722 | Oliver Wyman S.r.l. | Italy |
723 | Oliver Wyman Sdn. Bhd. | Malaysia |
724 | Oliver Wyman Services Limited | United Kingdom |
725 | Oliver Wyman Servicios, S. de R.L. de C.V. | Mexico |
726 | Oliver Wyman SNC | France |
727 | Oliver Wyman sp. z o.o. | Poland |
728 | Oliver Wyman SPRL/BVBA | Belgium |
729 | Oliver Wyman, Inc. | United States |
730 | Oliver Wyman, S. de R.L. de C.V. | Mexico |
731 | Oliver, Wyman Limited/Oliver, Wyman limitee | Canada |
732 | Omega Indemnity (Bermuda) Limited | Bermuda |
733 | Organizacion Brockman y Schuh S.A. de C.V. | Mexico |
734 | Osbornes Insurances Oxford Limited (in liquidation) | United Kingdom |
735 | OWL Marine Insurance-Brokers GmbH & Co.KG | Germany |
736 | OWL Marine Verwaltungs GmbH | Germany |
737 | Pallas Marsh Servicos Ltda. | Brazil |
738 | Pavilion Alternatives Group (Singapore) PTE. Ltd | Singapore |
739 | Pavilion Financial Corporation Holdings UK Limited | United Kingdom |
740 | Pavilion U.S. Investments Holdco LLC | United States |
741 | Pension Trustees Limited | United Kingdom |
742 | Pensionsservice Benefit Network Sverige AB | Sweden |
743 | Perils AG | Switzerland |
744 | Personal Pension Trustees Limited | United Kingdom |
745 | Pet Animal Welfare Scheme Limited | United Kingdom |
746 | PFT Limited | United Kingdom |
747 | PI Indemnity Company, Designated Activity Company | Ireland |
748 | Portsoken Trustees (No. 2) Limited | United Kingdom |
749 | Portsoken Trustees Limited | United Kingdom |
750 | Potomac Insurance Managers, Inc. | United States |
751 | Premier Pension Trustees Limited | United Kingdom |
752 | Premium Services Australia Pty Limited | Australia |
753 | Professional Claims Handling Limited (in liquidation) | United Kingdom |
754 | Profund Solutions Limited | United Kingdom |
755 | Promerit AG | Germany |
756 | Promerit Hungary Kft | Hungary |
757 | Promerit Schweiz AG | Switzerland |
758 | PT Jardine Lloyd Thompson | Indonesia |
759 | PT JLT Reinsurance Brokers | Indonesia |
760 | PT Marsh Indonesia | Indonesia |
761 | PT Marsh Reinsurance Brokers Indonesia | Indonesia |
762 | PT Mercer Indonesia | Indonesia |
763 | PT Nexus Asia Pacific | Indonesia |
764 | PT Oliver Wyman Indonesia | Indonesia |
765 | PT Quantum Computing Services | Indonesia |
766 | PT Quantum Investments | Indonesia |
767 | PT Quantum Support Services | Indonesia |
768 | Pymetrics, Inc. | United States |
769 | R G Ford Brokers Limited | United Kingdom |
770 | R R B Beratungsgesellschaft fuer Altersversorgung mbh | Germany |
771 | R. Mees & Zoonen Holdings B.V. | Netherlands |
772 | realright GmbH | Germany |
773 | Renewable Energy Loss Adjusters Limited | United Kingdom |
774 | Renewable Energy Loss Adjusters, LLC | United States |
775 | Resource Benefit Associates | Nigeria |
776 | Rightpath Reinsurance SPC, Ltd. | Cayman Islands |
777 | Risk Management Australia Pty Limited | Australia |
778 | Rivers Group Limited | United Kingdom |
779 | Rockefeller Risk Advisors, Inc. | United States |
780 | Rutherfoord International, Inc. | United States |
781 | SAFCAR-Marsh | Mali |
782 | Sail Insurance Company Limited | Bermuda |
783 | SBJ Holdings Limited | United Kingdom |
784 | Scalene Re Ltd | Bermuda |
785 | SCIB (Bermuda) Limited | Bermuda |
786 | SCM Global Real Estate Select GP LLC | United States |
787 | SCM Infrastructure General Partner S.a r.l. | Luxembourg |
788 | SCM International Private Equity Select III GP LLC | United States |
789 | SCM LT General Partner S.a.r.l. | Luxembourg |
790 | SCM PE General Partner S.a.r.l. | Luxembourg |
791 | SCM PE II GP Ltd. | Guernsey |
792 | SCM PE II Scotland GP Ltd | United Kingdom |
793 | SCM Strategic Capital Management (Luxembourg) S.a.r.l. | Luxembourg |
794 | Seabury & Smith Borrower LLC | United States |
795 | Seabury & Smith LLC | United States |
796 | Secure Limited | Bermuda |
797 | Sedgwick (Holdings) Pty. Limited | Australia |
798 | Sedgwick Consulting Group Limited | United Kingdom |
799 | Sedgwick Dineen Group Limited | Ireland |
800 | Sedgwick Financial Services Limited | United Kingdom |
801 | Sedgwick Forbes Middle East Limited | Jersey |
802 | Sedgwick Group (Australia) Pty. Limited | Australia |
803 | Sedgwick Group (Bermuda) Limited | Bermuda |
804 | Sedgwick Group (Zimbabwe) Limited | Zimbabwe |
805 | Sedgwick Group Limited | United Kingdom |
806 | Sedgwick Internationaal B.V. | Netherlands |
807 | Sedgwick Limited | United Kingdom |
808 | Sedgwick Management Services (Barbados) Limited | Barbados |
809 | Sedgwick Management Services (Singapore) Pte Limited | Singapore |
810 | Sedgwick Noble Lowndes (UK) Limited | United Kingdom |
811 | Sedgwick Noble Lowndes Group Limited | United Kingdom |
812 | Sedgwick Noble Lowndes Limited | United Kingdom |
813 | Sedgwick Overseas Investments Limited | United Kingdom |
814 | Sedgwick Private Limited | Singapore |
815 | Sedgwick Re Asia Pacific (Consultants) Pte Ltd (for dissolution) | Singapore |
816 | Sedgwick Trustees Limited | United Kingdom |
817 | Sedgwick UK Risk Services Limited | United Kingdom |
818 | Sedgwick Ulster Pension Trustees Limited | United Kingdom |
819 | Settlement Trustees Limited | United Kingdom |
820 | Shanghai Mercer Insurance Brokers Company Ltd. | China |
821 | Shorewest Insurance Associates, LLC | United States |
822 | SICAR Marsh S.a.r.l. | Burkina Faso |
823 | Sirota Asia Pacific Pte. Ltd. | Singapore |
824 | Sirota Consulting UK Limited | United Kingdom |
825 | SME Insurance Services Limited | United Kingdom |
826 | Smith Long Term Disability Management Group, Inc. | United States |
827 | Societe d'Assurances et de Participation Guian SA | France |
828 | Software Underwriting Systems Limited (in liquidation) | United Kingdom |
829 | Southern Marine & Aviation Underwriters, Inc. | United States |
830 | Southern Marine & Aviation, Inc. | United States |
831 | Sudzucker Versicherungs-Vermittlungs GmbH | Germany |
832 | Talent Tech Labs, LLC | United States |
833 | TBX Solutions Limited | United Kingdom |
834 | The Benefit Express Holdings Limited | United Kingdom |
835 | The Benefit Express Limited | United Kingdom |
836 | The Carpenter Management Corporation | United States |
837 | The Insurance Partnership Holdings Limited | United Kingdom |
838 | The Insurance Partnership Services Limited | United Kingdom |
839 | The Positive Ageing Company Limited | United Kingdom |
840 | The Purple Partnership Limited | United Kingdom |
841 | The Recovre Group Pty Ltd | Australia |
842 | Thomsons Online Benefits (HK) Ltd. | Hong Kong |
843 | Thomsons Online Benefits Inc. | United States |
844 | Thomsons Online Benefits Limited | United Kingdom |
845 | Thomsons Online Benefits Pte Ltd. | Singapore |
846 | Thomsons Online Benefits S.R.L | Romania |
847 | Torrent Government Contracting Services, LLC | United States |
848 | Torrent Insurance Services, LLC | United States |
849 | Torrent Technologies, Inc. | United States |
850 | Tower Hill Limited | United Kingdom |
851 | Tower Place Developments (West) Limited | United Kingdom |
852 | Tower Place Developments Limited | United Kingdom |
853 | U.T.E. AMG | Spain |
854 | U.T.E. Marsh - Caja Castilla La Mancha Junta de Comunidades | Spain |
855 | U.T.E. Marsh - Salvado Reus (in liquidation) | Spain |
856 | U.T.E. Marsh - Salvado Reus 2012 | Spain |
857 | U.T.E. Marsh - Salvado Vila-Seca 2010 | Spain |
858 | UAD BB Marsh Lietuva | Lithuania |
859 | Vezina & Associes Inc. | Canada |
860 | Vezina Assurances Inc. | Canada |
861 | Victor Insurance Europe B.V. | Netherlands |
862 | Victor Insurance Holdings Inc. | United States |
863 | Victor Insurance Italia S.r.l. | Italy |
864 | Victor Insurance Managers Inc. | United States |
865 | Victor Insurance Managers Inc./Gestionnaires d'assurance Victor inc. | Canada |
866 | Victor O. Schinnerer & Co. (Bermuda), Ltd. | Bermuda |
867 | Victor O. Schinnerer & Company Limited | United Kingdom |
868 | Victoria Hall Company Limited | Bermuda |
869 | Wellnz Limited | New Zealand |
870 | William M. Mercer (Canada) Limited/William M. Mercer (Canada) Limitee | Canada |
871 | William M. Mercer AB | Sweden |
872 | William M. Mercer Comercio, Consultoria e Servicos Ltda. | Brazil |
Date: | February 20, 2020 | /s/ Daniel S. Glaser | |
Daniel S. Glaser | |||
President and Chief Executive Officer |
Date: | February 20, 2020 | /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 20, 2020 | /s/ Daniel S. Glaser | |
Daniel S. Glaser | |||
President and Chief Executive Officer |
Date: | February 20, 2020 | /s/ Mark C. McGivney | |
Mark C. McGivney | |||
Chief Financial Officer |
Retirement Benefits (Schedule of Estimated Amounts That Will Be Amortized from Accumulated Other Comprehensive in the Next Fiscal Year) (Details) $ in Millions |
Dec. 31, 2019
USD ($)
|
---|---|
U.S. | Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ 72 |
U.S. | Post-retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 1 |
Non-U.S. | Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | 0 |
Net actuarial loss | 90 |
Projected cost | 90 |
Non-U.S. | Post-retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | (2) |
Net actuarial loss | 0 |
Projected cost | $ (2) |
Stock Benefit Plans (Black-Scholes Option Pricing Valuation Model For Options) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 2.51% | 2.73% | 2.09% |
Expected life (in years) | 6 years | 6 years | 6 years |
Expected volatility | 20.93% | 23.23% | 23.23% |
Expected dividend yield | 1.82% | 1.81% | 1.86% |
Supplemental Disclosures (Schedule of Supplemental Cash Flow Disclosures) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Supplemental Cash Flow Information [Abstract] | |||
Assets acquired, excluding cash | $ 8,655 | $ 1,100 | $ 898 |
Liabilities assumed | (2,804) | (83) | (134) |
Non-controlling interests assumed | (280) | 0 | 0 |
Contingent/deferred purchase consideration | (66) | (133) | (109) |
Net cash outflow for acquisitions | 5,505 | 884 | 655 |
Interest paid | 427 | 264 | 199 |
Income taxes paid, net of refunds | $ 661 | $ 632 | $ 583 |
Retirement Benefits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted average actuarial assumptions utilized defined benefit plans | The weighted average actuarial assumptions utilized in determining expense during the year and benefit obligation at the end of the year for the U.S. defined benefit and other U.S. post-retirement plans are as follows:
The weighted average actuarial assumptions utilized for the U.S. and significant non-U.S. defined benefit plans and post-retirement benefit plans are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of net periodic benefit cost for U.S. defined benefit and other postretirement benefit plans | The following chart provides the amounts reported in the consolidated statements of income:
The components of the net periodic benefit cost for defined benefit and other post-retirement plans are as follows:
The components of the net periodic benefit cost for the non-U.S. defined benefit and other post-retirement benefit plans and the curtailment, settlement and termination expenses are as follows:
The components of the net periodic benefit cost (credit) for the U.S. defined benefit and other post-retirement benefit plans are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of MMC's defined benefit plans and postretirement plans | The following schedules provide information concerning the Company’s non-U.S. defined benefit pension plans and non-U.S. post-retirement benefit plans:
The following schedules provide information concerning the Company’s U.S. defined benefit pension plans and post-retirement benefit plans:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of total recognized in net periodic benefit cost and other comprehensive income (loss) |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amounts recognized in other comprehensive income (loss) |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 to net periodic pension cost in the next fiscal year:
Estimated amounts that will be amortized from accumulated other comprehensive loss to net periodic pension cost in the next fiscal year:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated future benefit payments for its pension and postretirement benefits | The estimated future benefit payments for the Company's pension and post-retirement benefit plans are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2019 and 2018:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2019 and December 31, 2018:
(a) Transfers in during 2019 are primarily related to the inclusion of JLT plan assets.
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive income (loss) | The changes in the balances of each component of AOCI for the years ended December 31, 2019 and 2018, including amounts reclassified out of AOCI, are as follows:
The components of accumulated other comprehensive income (loss) are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other comprehensive income (loss) | The components of other comprehensive income (loss) are as follows:
|
Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company’s outstanding debt | The Company’s outstanding debt is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
Accumulated Other Comprehensive Income (Loss) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in the balances of each component of AOCI for the years ended December 31, 2019 and 2018, including amounts reclassified out of AOCI, are as follows:
The components of other comprehensive income (loss) are as follows:
The components of accumulated other comprehensive income (loss) are as follows:
|
Retirement Benefits |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan [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 post-retirement benefit plans are as follows:
*Rate of compensation increase assumptions do not include a rate of compensation increase for the U.S. defined benefit plans since future benefit accruals were discontinued for those plans after December 31, 2016. 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. Generally, the Company 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 the most significant plans 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 2019, the actual allocation for the U.S. plans was 64% equities and equity alternatives and 36% fixed income. The target asset allocation for the U.K. plans, which comprise approximately 81% of non-U.S. plan assets, is 34% equities and equity alternatives and 66% fixed income. At the end of 2019, the actual allocation for the U.K. plans was 35% equities and equity alternatives and 65% 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. JLT Defined Benefit Pension Plans As part of the JLT Transaction, the Company assumed responsibility for a number of pension plans throughout the world, with $255 million of net pension liabilities as of December 31, 2019 ($1,003 million in liabilities and $748 million of plan assets as of December 31, 2019), the most significant of which is the Jardine Lloyd Thompson U.K. Pension Scheme ("JLT U.K. plan"). The JLT U.K. plan has a defined benefit section which was frozen to future accrual in 2006 and a defined contribution section. The assets of the JLT U.K. plan are held in a trustee administered fund separate from the Company. The components of the net periodic benefit cost for defined benefit and other post-retirement plans are as follows:
The following chart provides the amounts reported in the consolidated statements of income:
Pension Settlement Charge Defined Benefit Pension Plans in the U.K. and certain other countries allow participants an option for the payment of a lump sum distribution from plan assets before retirement in full satisfaction of the retirement benefits due to the participant as well as any survivor’s benefit. The Company’s policy under applicable U.S. GAAP is to treat these lump sum payments as a partial settlement of the plan liability if they exceed the total of interest plus service costs ("settlement thresholds"). Based on the amount of lump sum payments through December 31, 2018, the lump sum payments exceeded the settlement thresholds in two of the U.K. plans. The Company recorded non-cash settlement charges of $42 million and $54 million, in the consolidated statements of income for the twelve month periods ended December 31, 2018, and 2017, respectively, primarily related to these plans. The Company recorded $7 million of non-cash settlement charges in 2019 related to other non-U.S. plans. 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. plan, the category ranges are 59-69% for equities and equity alternatives, and 31-41% for fixed income. For the U.K. plans, the category ranges are 31-37% for equities and equity alternatives, and 63-69% for fixed income. Asset allocation is monitored frequently and re-balancing actions are taken as appropriate. 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 remaining life expectancy of participants in plans where substantially all participants are inactive, or the average remaining service period of active participants for plans with active participants. U.S. Plans The following schedules provide information concerning the Company’s U.S. defined benefit pension plans and post-retirement benefit plans:
Estimated amounts that will be amortized from accumulated other comprehensive loss to net periodic pension cost in the next fiscal year:
The weighted average actuarial assumptions utilized in determining expense during the year and benefit obligation at the end of the year for the U.S. defined benefit and other U.S. post-retirement plans are as follows:
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 $6.3 billion, $6.3 billion and $4.7 billion, respectively, as of December 31, 2019 and $5.5 billion, $5.5 billion and $4.1 billion, respectively, as of December 31, 2018. The projected benefit obligation and fair value of plan assets for U.S. pension plans with projected benefit obligations in excess of plan assets was $6.3 billion and $4.7 billion, respectively, as of December 31, 2019 and $5.5 billion and $4.1 billion, respectively, as of December 31, 2018. As of December 31, 2019, the U.S. qualified plan holds 2 million shares of the Company’s common stock which were contributed to the qualified plan by the Company in 2005. This represented approximately 4.8% of that plan's assets as of December 31, 2019. The components of the net periodic benefit cost (credit) for the U.S. defined benefit and other post-retirement benefit plans are as follows:
The assumed health care cost trend rate for Medicare eligibles and non-Medicare eligibles is approximately 6% in 2019, gradually declining to 4.5% in 2039. 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 post-retirement benefit obligation. Estimated Future Contributions The Company expects to contribute approximately $76 million to its U.S. plans in 2020. 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. Non-U.S. Plans The following schedules provide information concerning the Company’s non-U.S. defined benefit pension plans and non-U.S. post-retirement benefit plans:
Estimated amounts that will be amortized from accumulated other comprehensive loss to net periodic pension cost in the next fiscal year:
The weighted average actuarial assumptions utilized in determining expense during the year and benefit obligation at the end of the year for the non-U.S. defined benefit and post-retirement plans are as follows:
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 $2.9 billion, $2.7 billion and $2.2 billion, respectively, as of December 31, 2019 and $1.7 billion, $1.6 billion and $1.3 billion, respectively, as of December 31, 2018. 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 $3.0 billion and $2.3 billion, respectively, as of December 31, 2019 and $1.9 billion and $1.6 billion, respectively, as of December 31, 2018. Non-U.S. Plan Amendments In March 2017, the Company modified its defined benefit pension plans in Canada to discontinue further benefit accruals for participants after December 31, 2017 and replaced them with a defined contribution arrangement. The Company also amended its post-retirement benefits plan in Canada so that individuals who retire after April 1, 2019 will not be eligible to participate, except in certain situations. The Company re-measured the assets and liabilities of the plans, based on assumptions and market conditions on the amendment date. Components of Net Periodic Benefits Costs The components of the net periodic benefit cost for the non-U.S. defined benefit and other post-retirement benefit plans and the curtailment, settlement and termination expenses are as follows:
The assumed health care cost trend rate was approximately 4.98% in 2019, gradually declining to 4.34% in 2029. 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 contribute approximately $84 million to its non-U.S. pension plans in 2020. 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., the assumptions used to determine pension contributions are the result of legally-prescribed negotiations between the Company and the plans' trustee that typically occurs every three years in conjunction with the actuarial valuation of the plans. Currently, this results in a lower funded status than under U.S. GAAP and may result in contributions irrespective of the U.S. GAAP funded status. For the MMC UK Pension Fund, in November 2016, the Company and the trustee agreed to a funding deficit recovery plan for the U.K. defined benefit pension plans. A new agreement was reached with the trustee in fourth quarter of 2019 based on the surplus funding position at December 31, 2018. Under the agreement no deficit funding is required until 2023. The funding level will be re-assessed during 2022 to determine if contributions are required in 2023. As part of a long-term strategy, which depends on having greater influence over asset allocation and overall investment decisions, in November 2019 the Company renewed its agreement to support annual deficit contributions by the U.K. operating companies under certain circumstances, up to GBP 450 million over a seven-year period. In addition in the U.K. the Company assumed responsibility for the JLT's Pension Scheme (JLT U.K. plan). Deficit funding of approximately $28 million is expected during 2020 with a new funding agreement expected to be reached with the trustee during 2020. Estimated Future Benefit Payments The estimated future benefit payments for the Company's pension and post-retirement benefit plans are as follows:
Defined Benefit Plans Fair Value Disclosures 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; Level 3, which refers to investments valued based on significant unobservable inputs; and NAV, which refers to investments valued using net asset value as a practical expedient. 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, 2019 and 2018:
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, 2019 and December 31, 2018:
(a) Transfers in during 2019 are primarily related to the inclusion of JLT plan assets.
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, rights/warrants and real estate investment trusts (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, 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. Short-term investment funds: Primarily high-grade money market instruments valued at net asset value at year-end. 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. In addition, as mentioned above, as part of the modification to its U.S. defined benefit pension plans, the Company also amended its U.S. defined contribution retirement plans for most of its U.S. employees to add an automatic Company contribution equal to 4% of eligible base pay beginning on January 1, 2017. The 401(k) Plan contains an Employee Stock Ownership Plan feature under U.S. tax law. Approximately $556 million of the 401(k) Plan’s assets at December 31, 2019 and $444 million at December 31, 2018 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 $139 million in 2019, $133 million in 2018 and $130 million in 2017. In addition, the Company has significant defined contribution plans 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. In addition, the Company has assumed responsibility for the defined contribution section of the JLT U.K. plan. The cost of the U.K. defined contribution plan was $100 million, $80 million and $75 million in 2019, 2018 and 2017, respectively.
|
Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of fixed assets | The components of fixed assets are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share for continuing operations | Reconciliations of the applicable components used to calculate basic and diluted EPS - Continuing Operations are presented below. The reconciling items related to the EPS calculation are the same for both basic and diluted EPS.
|
Leases |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases A lease is defined as a party obtaining the right to use an asset legally owned by another party. The Company determines if an arrangement is a lease at inception. For operating leases entered into prior to January 1, 2019, the ROU assets and operating lease liabilities are recognized in the balance sheet based on the present value of the remaining future minimum payments over the lease term from the implementation date of the standard, January 1, 2019. The ROU asset was adjusted for unamortized lease incentives and restructuring liabilities that were reported, prior to January 1, 2019, as other liabilities in the consolidated balance sheet. For leases entered into subsequent to January 1, 2019, the operating lease ROU asset and operating lease liabilities are based on the present value of minimum payments over the lease term at the commencement date of the lease. The Company uses discount rates to determine the present value of future lease payments. The Company primarily uses its incremental borrowing rate adjusted to reflect a secured rate, based on the information available for leases, including the lease term and interest rate environment in the country in which the lease exists. The lease terms used to calculate the ROU asset and lease liability may include options to extend or terminate when it is reasonably certain that the Company will exercise that option. The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 10 and 25 years. The Company utilizes these leased office facilities for use by its employees in countries in which the Company conducts its business. Leases are negotiated with third-parties and, in some instances contain renewal, expansion and termination options. The Company also subleases certain office facilities to third-parties when the Company no longer utilizes the space. None of the Company’s leases restrict the payment of dividends or the incurrence of debt or additional lease obligations, or contain significant purchase options. In addition to the base rental costs, our lease agreements generally provide for rent escalations resulting from increased assessments for real estate taxes and other charges. A portion of our real estate lease portfolio contains base rents subject to annual changes in the Consumer Price Index ("CPI") as well as charges for operating expenses which are reimbursable to the landlord based on actual usage. Changes to the CPI and payments for such reimbursable operating expenses are considered variable and are recognized as variable lease costs in the period in which the obligation for those payments was incurred. As a practical expedient, the Company has elected an accounting policy not to separate non-lease components from lease components and instead, accounts for these components as a single lease component. The Company has made an accounting policy election not to recognize ROU assets and lease liabilities for leases that, at the commencement date, are for 12 months or less. Approximately 99% of the Company’s lease obligations are for the use of office space. All of the Company’s material leases are operating leases. On April 1, 2019, the Company assumed approximately $400 million, of ROU assets and lease liabilities from the JLT Transaction. As part of the Company's real estate rationalization plan related to the JLT Transaction, the Company has determined that approximately $9 million of its ROU assets have been impaired, and therefore, recorded a charge to the consolidated statement of income for the twelve month period ended December 31, 2019, with an offsetting reduction to ROU assets. The Company expects additional impairments as it continues to assess its future real estate requirements. The following chart provides additional information about the Company’s property leases:
Future minimum lease payments for the Company’s operating leases as of December 31, 2019 are as follows:
Note: Table excludes obligations for leases with original terms of 12 months or less which have not been recognized as a right to use asset or liability in the consolidated balance sheets. As of December 31, 2019, the Company had additional operating real estate leases that had not yet commenced of $45 million. These operating leases will commence over the next 12 months. The consolidated statements of income include net rental costs of $383 million and $354 million in 2018 and 2017, respectively, after deducting rentals from subleases ($8 million in 2018 and 2017). These net rental costs exclude rental costs and sublease income for previously accrued restructuring charges related to vacated space. At December 31, 2018, the aggregate future minimum rental commitments under all non-cancelable operating lease agreements were:
|
Claims, Lawsuits and Other Contingencies |
12 Months Ended |
---|---|
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Claims, Lawsuits and Other Contingencies | Claims, Lawsuits and Other Contingencies Acquisition of Jardine Lloyd Thompson Group plc On April 1, 2019, the Company completed its previously announced acquisition of all of the outstanding shares of JLT. See Note 5 to the consolidated financial statements for additional information. Upon the consummation of the acquisition of JLT, the Company assumed the legal liabilities and became responsible for JLT’s litigation and regulatory exposures as of April 1, 2019. 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 be significant. In establishing liabilities for errors and omissions claims in accordance with FASB guidance on Contingencies - Loss Contingencies, the Company uses case level reviews by inside and outside counsel, and internal actuarial analysis by Oliver Wyman Group, a subsidiary of the Company, and other methods 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. Risk and Insurance Services Segment In April 2017, the Financial Conduct Authority in the United Kingdom (the "FCA") commenced a civil competition investigation into the aviation insurance and reinsurance sector. In connection with that investigation, the FCA carried out an on-site inspection at the London offices of Marsh Limited, our Marsh and Guy Carpenter operating subsidiary in the United Kingdom, and JLT Specialty Ltd., JLT's U.K. operating subsidiary. The FCA indicated that it had reasonable grounds for suspecting that Marsh Limited, JLT Specialty Ltd. and other participants in the market had been sharing competitively sensitive information within the aviation insurance and reinsurance broking sector. In October 2017, the Company received a notice that the Directorate-General for Competition of the European Commission had commenced a civil investigation of a number of insurance brokers, including both Marsh and JLT, regarding "the exchange of commercially sensitive information between competitors in relation to aviation and aerospace insurance and reinsurance broking products and services in the European Economic Area ("EEA"), as well as possible coordination between competitors." In light of the action taken by the European Commission, the FCA informed Marsh Limited and JLT Specialty Ltd. that it had discontinued its investigation under U.K. competition law. In May 2018, the FCA advised that it would not be taking any further action with Marsh Limited or JLT Specialty Ltd. in connection with this matter. In January 2019, the Company received a notice that the Administrative Council for Economic Defense anti-trust agency in Brazil had commenced an administrative proceeding against a number of insurance brokers, including both Marsh and JLT, and insurers “to investigate an alleged sharing of sensitive commercial and competitive confidential information" in the aviation insurance and reinsurance sector. We are cooperating with these investigations and are conducting our own reviews. At this time, we are unable to predict their likely timing, outcome or ultimate impact. There can be no assurance that the ultimate resolution of these or any related matters will not have a material adverse effect on our consolidated results of operations, financial condition or cash flows. Consulting Segment In 2014, the FCA conducted a thematic review of the suitability of financial advice provided to individuals by a number of firms, including JLT’s employee benefits business, relating to enhanced transfer value ("ETV") pension transfers. In January 2015, the FCA notified JLT that it was commissioning a Skilled Person review of JLT’s ETV advice. In February 2019, prior to the completion of the acquisition, JLT recorded a gross liability of approximately £59 million (or approximately $77 million) arising from the Skilled Person report and ETV review. Pending the outcome of the FCA’s review, and based on our review as of December 31, 2019, the Company has a gross liability of approximately £65 million (or approximately $85 million) recorded on its consolidated balance sheet for the estimated liabilities and costs arising from this matter. We expect this gross liability to be partially offset by insurance and indemnification claims under existing arrangements. 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, 2019, 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. * * * * The pending proceedings described above and other matters not explicitly described in this Note 16 on Claims, Lawsuits and Other Contingencies may expose the Company or its subsidiaries to liability for significant monetary damages, fines, penalties or other forms of relief. Where a loss is both probable and reasonably estimable, the Company establishes liabilities in accordance with FASB guidance on 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.
|
Goodwill and Other Intangibles (Amortized Intangible Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | $ 3,874 | $ 2,229 |
Accumulated Amortization | 1,100 | 792 |
Net Carrying Amount | 2,774 | 1,437 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 3,494 | 1,970 |
Accumulated Amortization | 897 | 639 |
Net Carrying Amount | 2,597 | 1,331 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 380 | 259 |
Accumulated Amortization | 203 | 153 |
Net Carrying Amount | $ 177 | $ 106 |
Leases (Lease Cost and Additional Information) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2019
USD ($)
| |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 371 |
Short-term lease cost | 8 |
Variable lease cost | 150 |
Sublease income | (18) |
Net lease cost | 511 |
Operating cash outflows from operating leases | 392 |
Right of use assets obtained in exchange for new operating lease liabilities | $ 140 |
Real Estate Lease | |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term – real estate | 8 years 9 months 10 days |
Weighted-average discount rate – real estate leases | 3.10% |
Consolidated Statements Of Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Statement of Stockholders' Equity [Abstract] | |||
Dividends equivalents declared per share (in dollars per share) | $ 1.74 | $ 1.58 | $ 1.43 |
Dividends declared per share (in dollars per share) | $ 1.74 | $ 1.58 | $ 1.43 |
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, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
Net income before non-controlling interests | $ 396 | $ 306 | $ 344 | $ 727 | $ 159 | $ 279 | $ 536 | $ 696 | $ 1,773 | $ 1,670 | $ 1,510 |
Less: Net income attributable to non-controlling interests | 31 | 20 | 20 | ||||||||
Net income attributable to the Company | $ 1,742 | $ 1,650 | $ 1,490 | ||||||||
Basic weighted average common shares outstanding (in shares) | 506 | 506 | 513 | ||||||||
Dilutive effect of potentially issuable common shares (in shares) | 5 | 5 | 6 | ||||||||
Diluted weighted average common shares outstanding (in shares) | 511 | 511 | 519 | ||||||||
Average stock price used to calculate common stock equivalents (in dollars per share) | $ 97.23 | $ 83.13 | $ 77.30 |
Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details of operating segment revenue | Details of operating segment revenue are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information by geographic area | Information by geographic area is as follows:
|
Debt |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The Company’s outstanding debt is as follows:
The senior notes in the table above are registered by the Company with the Securities and Exchange Commission, and are not guaranteed. The Company has established a short-term debt financing program of up to $1.5 billion through the issuance of commercial paper. The proceeds from the issuance of commercial paper are used for general corporate purposes. The Company had no commercial paper outstanding at December 31, 2019. Bridge Loan Financing On September 18, 2018, the Company entered into a bridge loan agreement to finance the JLT acquisition. The bridge loan agreement provided for commitments in the aggregate principal amount of £5.2 billion. In 2018, the Company paid approximately $35 million of customary upfront fees related to the bridge loan at the inception of the loan commitment, of which $30 million was amortized in 2018 and $5 million in the first quarter of 2019 as interest expense. The Company terminated its bridge loan agreement on April 1, 2019. Senior Notes In January 2020, the Company closed on $500 million one-year and $500 million two-year term loan facilities. The interest rate on these facilities is based on LIBOR plus a fixed margin which varies with the Company's credit ratings. The facilities require the Company to maintain coverage ratios and leverage ratios consistent with the revolving credit facility discussed below. The Company has no current borrowings outstanding under these facilities. The facility includes a provision for determining a LIBOR successor rate in the event LIBOR reference rates are no longer available, which is expected to occur by the end of 2021.These facilities are expected to expire on or around the time that LIBOR is expected to be replaced by a successor rate. In September 2019, the Company repaid $300 million of maturing senior notes. In connection with the closing of the JLT Transaction, the Company assumed approximately $1 billion of historical JLT indebtedness. In April and June of 2019, the Company repaid approximately $450 million and $553 million, respectively, representing all of JLT's debt it acquired upon the closing of the JLT Transaction. The Company incurred debt extinguishment costs of $32 million due to the debt repayments. In March 2019, the Company closed on $300 million one-year and $300 million three-year term loan facilities. The interest rate on these facilities was based on LIBOR plus a fixed margin which varies with the Company's credit ratings. In August 2019, the Company terminated the $300 million three-year term facility. The Company had $300 million of borrowings outstanding under the one-year term facility at September 30, 2019, which was repaid and terminated in December 2019. Also in March 2019, the Company issued €550 million of 1.349% Senior Notes due 2026 and €550 million of 1.979% Senior Notes due 2030. In addition, in March 2019, the Company issued an additional $250 million of 4.375% Senior Notes due 2029. These notes constitute a further issuance of the 4.375% Senior Notes due 2029, of which $1.25 billion aggregate principal amount was issued in January 2019 (see above). After giving effect to the issuance of the notes, the Company has $1.5 billion aggregate principal amount of 4.375% Senior Notes due 2029. The Company used part of the net proceeds from these offerings, along with the $5 billion of Senior Notes issued in January 2019 (discussed above) primarily to fund the acquisition of JLT, including the payment of related fees and expenses, and to repay certain JLT indebtedness, as well as for general corporate purposes. In January 2019, the Company issued $700 million of 3.50% Senior Notes due 2020, $1.0 billion of 3.875% Senior Notes due 2024, $1.25 billion of 4.375% Senior Notes due 2029, $500 million of 4.75% Senior Notes due 2039, $1.25 billion of 4.90% Senior Notes due 2049 and $300 million of Floating Rate Senior Notes due 2021. The floating rate notes are based on LIBOR plus a fixed margin. These notes are due prior to the date that LIBOR is expected to be replaced by a successor rate. In October 2018 the Company repaid $250 million of maturing senior notes. In March 2018, the Company issued $600 million of 4.20% senior notes due 2048. The Company used the net proceeds for general corporate purposes. Other Credit Facilities In October 2018, the Company and certain of its foreign subsidiaries increased its multi-currency five-year unsecured revolving credit facility from $1.5 billion to $1.8 billion. 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 October 2023 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, 2019. The facility includes a provision for determining a LIBOR successor rate in the event LIBOR reference rates are no longer available. In such case, the rate would be determined using an alternate reference rate that has been broadly accepted by the syndicated loan market in the United States in lieu of LIBOR (the “LIBOR successor rate”). If no LIBOR successor rate has been determined, the rate will be based on the higher of the rate announced publicly by Citibank, New York, NY, as its base rate or the fed funds rate plus a fixed margin. Additional credit facilities, guarantees and letters of credit are maintained with various banks, primarily related to operations located outside the United States, aggregating $598 million at December 31, 2019 and $594 million at December 31, 2018. There were no outstanding borrowings under these facilities at December 31, 2019 and December 31, 2018. Scheduled repayments of long-term debt in 2020 and in the four succeeding years are $1.2 billion, $815 million, $515 million, $617 million and $1.6 billion, 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.
|
Segment Information |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company is organized based on the types of services provided. Under this 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. Prior to being acquired by the Company, JLT operated in three segments: Specialty, Reinsurance and Employee Benefits. JLT operated in 41 countries, with significant revenue in the United Kingdom, Pacific, Asia and the United States. As of April 1, 2019, the historical JLT businesses were combined into MMC operations as follows: JLT Specialty is included by geography within Marsh, JLT Reinsurance is included in Guy Carpenter and the majority of JLT's Employee Benefits business was included in Mercer Health and Wealth. 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:
|
Revenue (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue | The following schedule disaggregates various components of the Company's revenue:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract assets and liabilities | The following schedule provides contract assets and contract liabilities information from contracts with customers.
|
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 structure, the Company’s two business segments are Risk and Insurance Services and Consulting. The Risk and Insurance Services segment provides risk management solutions, services, advice 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 Mercer and Oliver Wyman Group. Mercer provides consulting expertise, advice, services and solutions in the areas of health, wealth and career consulting services and products. Oliver Wyman Group provides specialized management and economic and brand consulting services. On April 1, 2019, the Company completed the acquisition (the "Transaction") of all of the outstanding shares of Jardine Lloyd Thompson Group plc ("JLT"), a public company organized under the laws of England and Wales. JLT's results of operations for the period April 1, 2019 through December 31, 2019 are included in the Company’s results of operations for 2019. JLT's results of operations for the period January 1 through March 31, 2019 and for the years ended 2018 and 2017 are not included in the Company's results of operations and therefore, affect comparability. Prior to being acquired by the Company, JLT operated in three segments: Specialty, Reinsurance and Employee Benefits. JLT operated in 41 countries, with significant revenue in the United Kingdom, Pacific, Asia and the United States. As of April 1, 2019, the historical JLT businesses were combined into MMC operations as follows: JLT Specialty is included by geography within Marsh, JLT Reinsurance is included in Guy Carpenter and the majority of JLT's Employee Benefits business is included in Mercer Health and Wealth. 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, generally the Company 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 $105 million, $65 million and $39 million in 2019, 2018 and 2017, respectively. The Consulting segment recorded fiduciary interest income of $4 million, $3 million and $4 million in 2019, 2018 and 2017, 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 $8.9 billion and $7.3 billion at December 31, 2019 and 2018, respectively. The increase reflects the inclusion of JLT's balances at December 31, 2019. 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. Accordingly, net uncollected premiums and claims and the related payables are 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 assets in trusts or funds for which Mercer’s management or trustee fee is not considered a variable interest, since the fees are commensurate with the level of effort required to provide those services. Mercer is not the primary beneficiary of these trusts or funds. Mercer’s maximum exposure to loss of its interests is, therefore, limited to collection of its fees. Revenue: The Company provides detailed discussion regarding its revenue policies in Note 2 to the consolidated financial statements. 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 United States or as collateral under captive insurance arrangements. At December 31, 2019, the Company maintained $197 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 of an asset, 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 caption "Investment income (loss)" in the consolidated statements of income comprises realized and unrealized gains and losses from investments recognized in earnings. It includes, when applicable, other than temporary declines in the value of securities, mark-to-market increases or decreases in equity investments with readily determinable fair values and equity method gains or losses on the Company's investments in private equity funds. The Company holds investments in certain 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. Investment gains or losses for its proportionate share of the change in fair value of the funds are recorded in earnings. Investments using the equity method of accounting are included in "other assets" in the consolidated balance sheets. In 2019, the Company recorded investment income of $22 million compared to investment loss of $12 million in 2018 and investment income of $15 million in 2017. The investment gain in 2019 includes gains of $10 million related to mark-to-market changes in equity securities and gains of $12 million related to investments in private equity funds and other investments. The investment loss in 2018 includes an impairment charge of $83 million related to its investment in Alexander Forbes (see Note 10). The net investment loss in 2018 also includes gains of $54 million related to mark-to-market changes in equity securities and gains of $17 million related to investments in private equity funds and other investments. The investment income in 2017 was due to a gain on the sale of an equity investment and gains related to investments in private equity funds. 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. In accordance with applicable accounting guidance, a company can assess qualitative factors to determine whether it is necessary to perform a goodwill impairment test. Alternatively, the company may elect to proceed directly to the quantitative goodwill impairment test. When a quantitative 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 elected to perform a quantitative impairment assessment during 2019. Other intangible assets, which primarily consist of acquired 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, 2019 and 2018. 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 $496 million and $435 million, net of accumulated amortization of $1.4 billion and $1.3 billion as of December 31, 2019 and 2018, 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 by Oliver Wyman Group, a subsidiary of the Company, and other methods to estimate potential losses, including estimated legal costs. 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 tax provision and in evaluating uncertain tax positions and the ability to realize deferred tax assets. See Part II, Item 7. ("Management’s Discussion and Analysis of Financial Condition and Results of Operations" - Income Taxes) for a discussion of accounting policies governing the Company’s income tax provision. The Company reports 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 may require items 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. Integration and Restructuring Charges: Severance and related costs are recognized based on amounts due under established severance plans or estimates of one-time benefits that will be provided. Typically, severance benefits are recognized when the impacted colleagues are notified of their expected termination and such termination is expected to occur within the legally required notification period. These costs are included in compensation and benefits in the consolidated statements of income. Costs for real estate consolidation are recognized based on the type of cost, and the expected future use of the facility. For locations where the Company does not expect to sub-lease the property, the amortization of any right-of-use asset is accelerated from the decision date to the cease use date. For locations where the Company expects to sub-lease the properties subsequent to its vacating the property, the right-of-use asset is reviewed for potential impairment at the earlier of the cease use date or the date a sub-lease is signed. To determine the amount of impairment, the fair value of the right-of-use asset is determined based on the present value of the estimated net cash flows related to the property. Contractual costs outside of the right-of-use asset are recognized based on the net present value of expected future cash outflows for which the Company will not receive any benefit. Such amounts are reliant on estimates of future sub-lease income to be received and future contractual costs to be incurred. These costs are included in other operating expenses in the consolidated statements of income. Other costs related to integration and restructuring, such as moving, legal or consulting costs are recognized as incurred. These costs are included in other operating expenses in the consolidated statements of income. 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. 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. If a derivative is not designated as an accounting hedge, the change in fair value is recorded 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 recoverables. 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 components used to calculate basic and diluted EPS - Continuing Operations are presented below. The reconciling items related to the EPS calculation are the same for both basic and diluted EPS.
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 Effective January 1, 2019: The following new accounting standard was adopted using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of January 1, 2019: Leases Effective January 1, 2019, the Company adopted new guidance intended to improve financial reporting for leases. Under the new guidance, a lessee is required to recognize assets and liabilities for leases. Consistent with legacy GAAP, the recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee will depend on the classification of the lease as financing or operating. However, unlike legacy GAAP, which requires that only capital leases are recognized on the balance sheet, the new guidance requires that both operating and financing leases be recognized on the balance sheet. The Company adopted this new standard using a modified retrospective method, applying the new guidance as of the beginning of the year of adoption, with a cumulative effect of initially applying the guidance recognized as an adjustment to retained earnings at January 1, 2019. Therefore, prior period information has not been restated. The Company has elected the package of practical expedients, which among other things, allows historical lease classifications to be carried forward. The Company did not elect the hindsight practical expedient in determining lease term and impairment of an entity's Right of Use Assets ("ROU assets"). On January 1, 2019, the Company recognized a lease liability of $1.9 billion and ROU asset of $1.7 billion, related to real estate operating leases. The ROU asset also reflected reclassification adjustments primarily from other liabilities related to existing deferred rent, unamortized lease incentives and restructuring liabilities of approximately $200 million upon adoption. There was no cumulative-effect adjustment required to be booked to retained earnings upon transition. The adoption of this standard did not have a material impact on our income statement as compared to prior periods. The following new accounting standards were adopted prospectively as of January 1, 2019: Derivatives and Hedging Effective January 1, 2019, the Company adopted new guidance intended to refine and expand hedge accounting for both financial and commodity risks. The guidance creates more transparency around how economic results are presented in both the financial statements and the footnotes, as well as making targeted improvements to simplify the application of hedge accounting guidance. The Company adopted this guidance effective January 1, 2019. The adoption of this standard did not have an impact on the Company's financial position or results of operations. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Effective January 1, 2019, the Company adopted new guidance that allowed an entity to reclassify the stranded tax effects resulting from the Tax Cuts and Job Act (the "TCJA") from accumulated other comprehensive income ("AOCI") to retained earnings. The guidance is effective for the period beginning January 1, 2019. The Company elected not to reclassify the stranded income tax effects of the TCJA from AOCI to retained earnings. The adoption of this standard had no impact on the Company's financial position or results of operations. The Company’s accounting policy related to releasing income tax effects from AOCI follows the portfolio approach. New Accounting Pronouncements Effective January 1, 2018: The following new accounting standards were adopted using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of January 1, 2018: Revenue Recognition Effective January 1, 2018, the Company adopted new accounting guidance related to revenue from contracts with customers. 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. The Company adopted the new guidance effective January 1, 2018, using the modified retrospective method, which applies the new guidance beginning with the year of adoption, with the cumulative effect of initially applying the guidance recognized as an adjustment to retained earnings at January 1, 2018. The Company elected to apply the modified retrospective method to all contracts. The cumulative effect of adopting the standard, net of tax, on January 1, 2018 resulted in an increase to the opening balance of retained earnings of $364 million, with offsetting increases/decreases to other balance sheet accounts (accounts receivable, other assets and deferred income taxes). Recognition and Measurement of Financial Instruments Effective January 1, 2018, the Company adopted new guidance intended to improve the recognition and measurement of financial instruments. The new guidance requires investments in equity securities (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and requires a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as "own credit") when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The Company holds certain equity investments that under legacy GAAP were previously treated as available for sale securities, whereby the mark-to-market change was recorded to AOCI in its consolidated balance sheet. The Company adopted the new accounting guidance, effective January 1, 2018, and recorded a cumulative- effect adjustment increase to retained earnings as of the beginning of the period of adoption of $14 million, reflecting the reclassification of cumulative unrealized gains, net of tax as of December 31, 2017 from AOCI to retained earnings. Income Tax Consequences of Intra-Entity Transfers Effective January 1, 2018, the Company adopted new guidance which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new guidance eliminates the exception for an intra-entity transfer of an asset other than inventory. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance was applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company adopted the new guidance effective January 1, 2018, and recorded a cumulative-effect adjustment decrease to retained earnings of approximately $14 million as of the beginning of the period of adoption. Adoption of amended accounting standard using the retrospective application approach Effective January 1, 2018, the Company adopted new guidance that changes the presentation of net periodic pension cost and net periodic postretirement cost (''net periodic benefit costs"). The new guidance requires employers to report the service cost component of net periodic benefit costs in the same line item as other compensation costs in the income statement. The other components of net periodic benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The new guidance required retrospective application for the presentation of the service cost component and the other components of net periodic benefit costs. Accordingly, the Company reclassified prior period information in the consolidated results of operations, segment data and related disclosures contained in our notes to the consolidated financial statements to reflect the retrospective adoption of this standard. New Accounting Pronouncements Not Yet Adopted In December 2019, the Financial Accounting Standards Board ("FASB") issued guidance related to the accounting for income taxes. The standard removes specific exceptions in the current rules and eliminates the need for an organization to analyze whether the following apply in a given period: (a) exception to the incremental approach for intraperiod tax allocation; (b) exceptions to accounting for basis differences when there are ownership changes in foreign investments and (c) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The standard also is designed to improve financial statement preparers’ application of income tax-related guidance and simplify GAAP for (a) franchise taxes that are partially based on income; (b) transactions with a government that result in a step-up in the tax basis of goodwill; (c) separate financial statements of legal entities that are not subject to tax and (d) enacted changes in tax laws in interim periods. The standard takes effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact this standard will have on the Company’s financial position. In August 2018, the FASB issued new guidance that amends required fair value measurement disclosures. The guidance adds new requirements, eliminates some current disclosures and modifies other required disclosures. The new disclosure requirements, along with modifications made to disclosures as a result of the change in requirements for narrative descriptions of measurement uncertainty, must be applied on a prospective basis. The effects of all other amendments included in the guidance must be applied retrospectively for all periods presented. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. Adoption of this guidance will impact disclosures only and will not have an impact on the Company's financial position or results of operations. In August 2018, the FASB issued new guidance that amends disclosures related to Defined Benefit Plans. The guidance removes disclosures that no longer are considered cost-beneficial, clarifies the specific requirements of certain disclosures, and adds disclosure requirements identified as relevant. The guidance must be applied on a retrospective basis. The guidance is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. Adoption of this guidance will impact disclosures only and will not have an impact on the Company's financial position or results of operations. In January 2017, the FASB issued new guidance to simplify the test for goodwill impairment. The new guidance eliminates the second step in the current two-step goodwill impairment process, under which a goodwill impairment loss is measured by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill for that reporting unit. The new guidance requires a one-step impairment test, in which the goodwill impairment charge is based on the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance should be applied on a prospective basis with the nature of and reason for the change in accounting principle disclosed upon transition. The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its financial position or results of operations. In June 2016, the FASB issued new guidance on the impairment of financial instruments. The new guidance adds an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of lifetime expected credit losses, which the FASB believes will result in more timely recognition of such losses. The new standard is also intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. Further, the new standard makes targeted changes to the impairment model for available-for-sale debt securities. The new standard is effective for public companies for annual reporting periods beginning after December 15, 2019, and interim periods therein. The adoption of this standard will not have a material impact on the Company's financial position or results of operations.
|
Goodwill and Other Intangibles (Estimated Future Aggregate Amortization Expense) (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 344 | |
2021 | 328 | |
2022 | 299 | |
2023 | 278 | |
2024 | 267 | |
Subsequent years | 1,258 | |
Net Carrying Amount | $ 2,774 | $ 1,437 |
Leases (Future Minimum Payments for Operating Leases) (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Mar. 31, 2019 |
---|---|---|
Leases [Abstract] | ||
2020 | $ 413 | |
2021 | 359 | |
2022 | 335 | |
2023 | 288 | |
2024 | 241 | |
Subsequent years | 974 | |
Total future lease payments | 2,610 | |
Less: Imputed interest | (342) | |
Total | 2,268 | |
Current lease liabilities | 342 | |
Long-term lease liabilities | $ 1,926 | $ 1,900 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
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 | $ 1 |
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) | 57,013,097 | 56,804,468 |
Debt (Estimated Fair Value Of Significant Financial Instruments) (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt | $ 1,215 | $ 314 |
Long-term debt | 10,741 | 5,510 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt | 1,229 | 313 |
Long-term debt | $ 11,953 | $ 5,437 |
Income Taxes (U.S. Federal Statutory Rate) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | |||
U.S. Federal statutory rate | 21.00% | 21.00% | 35.00% |
U.S. state and local income taxes—net of U.S. Federal income tax benefit | 3.00% | 2.30% | 1.50% |
Differences related to non-U.S. operations | 3.00% | 3.30% | (8.60%) |
U.S. Tax Reform | 0 | (0.003) | 0.174 |
Equity compensation | (1.30%) | (1.00%) | (2.60%) |
Other | 1.60% | 0.30% | 0.20% |
Effective tax rate | 27.30% | 25.60% | 42.90% |
Revenue - Contract Assets and Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Jan. 01, 2019 |
Jan. 01, 2018 |
---|---|---|---|
Revenue from Contract with Customer [Abstract] | |||
Contract Assets | $ 207 | $ 112 | $ 128 |
Contract Liabilities | $ 593 | $ 545 | $ 583 |
Summary of Significant Accounting Policies (Components of Fixed Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 2,859 | $ 2,543 | |
Less-accumulated depreciation and amortization | (2,001) | (1,842) | |
Fixed assets, net | 858 | 701 | $ 712 |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 1,268 | 1,159 | |
Land and buildings | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 377 | 377 | |
Leasehold and building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 1,214 | $ 1,007 |
Integration and Restructuring Costs (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring activity | Details of the restructuring liability activity from January 1, 2018 through December 31, 2019, including actions taken prior to 2019, are as follows:
Details of the JLT integration and restructuring activity from January 1, 2019 through December 31, 2019, are as follows:
(a) Includes data center contract termination costs and temporary infrastructure leasing costs. (b) Includes consulting fees related to the management of the integration processes and legal fees related to the rationalization of legal entity structures.
|
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, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
U.S. | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ 160 | $ 63 | $ (10) |
U.S. | Post-retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | 2 | 0 | 5 |
Non-U.S. | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | 311 | (147) | (513) |
Non-U.S. | Post-retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ 5 | $ (5) | $ (14) |
Supplemental Disclosures (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Mar. 31, 2019 |
|
Supplemental Cash Flow Information [Abstract] | ||||
Deferred and contingent purchase consideration from prior years' acquisition | $ 65 | $ 117 | $ 136 | |
Deferred purchase consideration from prior years' acquisitions | 43 | 62 | 55 | |
Contingent purchase consideration from prior years' acquisitions | 22 | 55 | 81 | |
Net charge for adjustments related to acquisitions | 68 | 32 | 3 | |
Payment of contingent consideration | 41 | 36 | 27 | |
Non-cash issuances of common stock | 165 | 130 | 88 | |
Stock-based compensation expense | 252 | $ 193 | $ 149 | |
ROU asset | 1,921 | $ 1,700 | ||
Lease liability | $ 1,926 | $ 1,900 |
Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income Loss) (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of AOCI | $ 7,943 | $ 7,584 | $ 7,442 | |
Deferred tax asset on foreign currency translation adjustments | 14 | 15 | ||
Deferred tax asset on net charges related to pension/post-retirement plans | 1,635 | 1,493 | ||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of AOCI | (1,543) | (1,694) | (1,165) | |
Pension/Post-Retirement Plans Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of AOCI | (3,512) | (2,953) | (2,892) | |
Total | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of AOCI | $ (5,055) | $ (4,647) | $ (4,043) | $ (5,093) |
Segment Information (Narrative) (Details) |
12 Months Ended | |
---|---|---|
Mar. 31, 2019
country
segment
|
Dec. 31, 2019
segment
|
|
Segment Reporting Information [Line Items] | ||
Number of business segments (segment) | 2 | |
JLT Transaction | ||
Segment Reporting Information [Line Items] | ||
Number of business segments (segment) | 3 | |
Number of countries in which entity operates (country) | country | 41 |
Acquisitions and Dispositions (Pro-Forma Information) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Business Combinations [Abstract] | |||
Revenue | $ 17,095 | $ 17,106 | $ 14,400 |
Net income attributable to the Company | $ 1,866 | $ 1,302 | $ 1,498 |
Basic net income per share attributable to the Company (in dollars per share) | $ 3.69 | $ 2.58 | $ 2.92 |
Diluted net income per share attributable to the Company (in dollars per share) | $ 3.65 | $ 2.55 | $ 2.89 |
Leases (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease cost and additional information | The following chart provides additional information about the Company’s property leases:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future minimum lease payments | Future minimum lease payments for the Company’s operating leases as of December 31, 2019 are as follows:
Note: Table excludes obligations for leases with original terms of 12 months or less which have not been recognized as a right to use asset or liability in the consolidated balance sheets.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum rental payments for operating leases | At December 31, 2018, the aggregate future minimum rental commitments under all non-cancelable operating lease agreements were:
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes on income | For financial reporting purposes, income before income taxes includes the following components:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred income tax assets and liabilities | The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized tax benefits | Following is a reconciliation of the Company’s total gross unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Status of audits for significant jurisdictions outside of the United States | The status of audits for significant jurisdictions outside the United States are summarized in the table below:
|
Supplemental Disclosures (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Analysis of allowance for doubtful accounts | An analysis of the allowance for doubtful accounts is as follows:
|
Acquisitions and Dispositions |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | Acquisitions and 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 values of the net tangible assets and the identifiable intangible assets purchased, which typically consist of customer relationships, developed technology, trademarks and non-compete agreements. The valuation of purchased intangible assets involves significant estimates and assumptions. The Company estimates the fair value of purchased intangible assets, primarily using the income approach, by determining the present value of future cash flows over the remaining economic life of the respective assets. The significant estimates and assumptions used in this approach include the determination of the discount rate, economic life, future revenue growth rates, expected account attrition rates and earnings margins. Refinement and completion of final valuation of net assets acquired could affect the carrying value of tangible assets, goodwill and identifiable intangible assets. On April 1, 2019, the Company completed the JLT Transaction and purchased all of the outstanding shares of JLT. Under the terms of the Transaction, JLT shareholders received £19.15 in cash for each JLT share, which valued JLT’s existing issued and to be issued share capital at approximately £4.3 billion (or approximately $5.6 billion based on an exchange rate of U.S. $1.31:£1). The Company also assumed existing JLT long-term indebtedness of approximately $1 billion. The Company implemented the Transaction by way of a scheme of arrangement under Part 26 of the United Kingdom Companies Act 2006, as amended. The Company believes the Transaction strengthens MMC’s leadership position in insurance and reinsurance broking, health and retirement. The addition of over 10,000 colleagues provides deeper industry expertise in almost every part of the Company. The Transaction also builds on MMC’s efforts to expand in faster-growing geographies and market segments, and facilitates investment in data and analytics. The Risk and Insurance Services segment completed five other acquisitions during 2019.
Total purchase consideration for acquisitions made during 2019 was approximately $5,927 million, which consisted of cash paid of $5,861 million and deferred purchase and estimated contingent consideration of $66 million. Contingent consideration arrangements are based primarily on earnings before interest, tax, depreciation and amortization ("EBITDA") or revenue targets over a period of two to four years. During 2019, the Company also paid $43 million of deferred purchase consideration and $63 million of contingent consideration related to acquisitions made in prior years. Estimated fair values of assets acquired and liabilities assumed are subject to adjustment when purchase accounting is finalized. The following table presents the preliminary allocation of purchase consideration to the assets acquired and liabilities assumed during 2019 based on the estimated fair values for JLT and other acquisitions as of their respective acquisition dates:
The purchase price allocation above is based on estimates that are preliminary in nature and subject to adjustments, which could be material. Any necessary adjustments must be finalized during the measurement period, which for a particular asset, liability, or non-controlling instrument ends once the acquirer determines that either (1) the necessary information has been obtained or (2) the information is not available. However, the measurement period for all items is limited to one year from the acquisition date. During the fourth quarter of 2019, the Company made certain adjustments to the above JLT purchase price allocation, which included an increase to goodwill of approximately $90 million, an increase to other liabilities, and decreases to net receivables, other assets and current liabilities. Items subject to change include:
The estimation of fair value requires numerous judgments, assumptions and estimates about future events and uncertainties, which could materially impact these values, and the related amortization, where applicable, in the Company’s results of operations. The following chart provides information about intangible assets acquired during 2019:
Subsequent to the JLT acquisition, the Company purchased the outstanding non-controlling interests of several JLT subsidiaries for cash payments of approximately $79 million. In January 2019, Marsh increased its equity ownership in Marsh India from 26% to 49%. Marsh India is accounted for under the equity method. Prior Year Acquisitions During 2018, the Risk and Insurance Services segment completed 12 acquisitions.
The Consulting segment completed 8 acquisitions during 2018.
Total purchase consideration for acquisitions made during 2018 was approximately $1.04 billion, which consisted of cash paid of $910 million and deferred purchase and estimated contingent consideration of $133 million. Contingent consideration arrangements are based primarily on EBITDA and/or 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 2018, the Company also paid $62 million of deferred purchase consideration and $91 million of contingent consideration related to acquisitions made in prior years. Subsequent Event Transactions During January 2020, MMA completed the acquisition of two independent insurance brokers, Momentous Insurance Brokerage ("Momentous") and Ironwood Insurance Services ("Ironwood"). Momentous is a California-based full-service risk management and employee benefits firm specializing in high net worth private client services and insurance solutions for the entertainment industry. Ironwood is an Atlanta-based broker that provides commercial property/casualty insurance, employee benefits, and private client solutions to mid-size businesses and individuals throughout the US. At December 31, 2019, the Company owned approximately 34% of Alexander Forbes ("AF"). In January 2020, the Company announced that it would dispose of a substantial portion of its investment in AF in the form of two independent transactions. In February 2020, the Company, in a separate transaction, sold the shares not subject to the agreements above to an independent third party. The consummation of all three transactions will result in a total liquidation of the Company's investment in AF. Pro-Forma Information The following unaudited pro-forma financial data gives effect to the acquisitions made by the Company during 2019, 2018 and 2017. 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, 2018 and reflects acquisitions made in 2018 as if they occurred on January 1, 2017. The 2017 information includes 2017 acquisitions as if they occurred on January 1, 2016. The pro-forma information includes the effects of amortization of acquired intangibles and additional interest expense related to the issuance of debt related to the JLT Transaction. 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 unaudited pro-forma information presented in the table above includes adjustments for acquisition related costs, the change in fair value of JLT acquisition related derivatives, bridge financing costs and the early extinguishment of debt, including $207 million of costs incurred in 2019 that were reflected in the 2018 pro-forma results presented above. The consolidated statement of income for 2019 includes approximately $1.2 billion of revenue and an operating loss of $40 million related to acquisitions made during 2019. The consolidated statement of income for 2018 includes approximately $120 million of revenue and $2 million of operating income related to acquisitions made during 2018, and the consolidated statement of income for 2017 includes approximately $156 million of revenue and $19 million of operating income related to acquisitions made during 2017. The Company incurred acquisition related costs, primarily related to legal, investment banking and U.K. stamp duty tax of $125 million for the year ended December 31, 2019, primarily related to the acquisition of JLT. These costs are included in other operating expenses in the Company's consolidated statement of income. Acquisition-related expenses incurred in 2018 were $7 million. Dispositions During the third quarter of 2019, the Company completed the sale of a U.S. Specialty business at Marsh and a U.S. large market health and defined benefit business at Mercer for cash proceeds of approximately $60 million. Also, on June 1, 2019, the Company completed its disposition of JLT’s global aerospace business for cash proceeds of $165 million and contingent consideration receivable of approximately $65 million, based on the aerospace business achieving certain revenue milestones in 2020. The aerospace business was divested as part of the European Commission's approval of the JLT Transaction. In September 2018, Marsh completed its sale of a risk management software and services business resulting in a pre-tax gain of $46 million, which is included in revenue in the consolidated statement of income.
|
Stock Benefit Plans |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [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 benefits. 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 2019, 2018 and 2017 are as follows:
A summary of the status of the Company’s stock option awards as of December 31, 2019 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, 2019, 2018 and 2017 was $17.87, $18.29 and $15.01, respectively. The total intrinsic value of options exercised during the same periods was $136.7 million, $72.9 million and $195.3 million, respectively. As of December 31, 2019, there was $19.0 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 1.25 years. Cash received from the exercise of stock options for the years ended December 31, 2019, 2018 and 2017 was $106.5 million, $46.7 million and $126.7 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 measure(s), 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 shares to be paid 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 and shares are distributed. A summary of the status of the Company's restricted stock units and performance stock units as of December 31, 2019 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, 2018 and 2017 was $83.05 and $73.23, respectively. The weighted average grant date fair value of the Company's performance stock units granted during the years ended December 31, 2018 and 2017 was $83.05 and $73.20, respectively. The total fair value of the shares distributed during the years ended December 31, 2019, 2018 and 2017 in connection with the Company's non-option equity awards was $211.9 million, $170.3 million and $117.1 million, respectively. The payout of shares in 2019 with respect to the PSUs awarded in 2016 was 97% of target based on performance for the three-year performance period. In aggregate, 254,993 shares became distributable in respect to PSUs vested in 2019. As of December 31, 2019, there was $357 million of unrecognized compensation cost related to the Company's restricted stock units and performance stock unit awards. The weighted-average period over which that cost is expected to be recognized is approximately 1.11 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 and the addition of 4,750,000 shares due to a shareholder action in May 2018, no more than 40,350,000 shares of the Company's common stock may be sold. Employees purchased 405,872 shares during the year ended December 31, 2019 and at December 31, 2019, 5,272,708 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, the addition of 4,000,000 shares due to a shareholder action in May 2007 and reducing the shares available by 1,000,000 consistent with the Company's Board of Directors' action in March 2018, no more than 11,000,000 shares of the Company's common stock may be sold. Employees purchased 103,635 shares during the year ended December 31, 2019 and there were 1,271,213 shares available for issuance at December 31, 2019 under the International Plan. The plans are considered non-compensatory.
|
Common Stock |
12 Months Ended |
---|---|
Dec. 31, 2019 | |
Equity [Abstract] | |
Common Stock | Common Stock During 2019, the Company repurchased 4.8 million shares of its common stock for total consideration of $485 million. In November 2019, the Board of Directors of the Company authorized the Company to repurchase up to $2.5 billion of the Company's common stock, which superseded any prior authorizations. The Company remains authorized to purchase additional shares of its common stock up to a value of approximately $2.4 billion. There is no time limit on the authorization. During 2018, the Company purchased 8.2 million shares of its common stock for total consideration of $675 million. The Company issued approximately 4.6 million and 3.3 million shares related to stock compensation and employee stock purchase plans during the years ended December 31, 2019 and 2018, respectively.
|
Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
---|---|
Dec. 31, 2019 | |
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 structure, the Company’s two business segments are Risk and Insurance Services and Consulting. The Risk and Insurance Services segment provides risk management solutions, services, advice 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 Mercer and Oliver Wyman Group. Mercer provides consulting expertise, advice, services and solutions in the areas of health, wealth and career consulting services and products. 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, generally the Company 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 $105 million, $65 million and $39 million in 2019, 2018 and 2017, respectively. The Consulting segment recorded fiduciary interest income of $4 million, $3 million and $4 million in 2019, 2018 and 2017, 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 $8.9 billion and $7.3 billion at December 31, 2019 and 2018, respectively. The increase reflects the inclusion of JLT's balances at December 31, 2019. 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. Accordingly, net uncollected premiums and claims and the related payables are 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 assets in trusts or funds for which Mercer’s management or trustee fee is not considered a variable interest, since the fees are commensurate with the level of effort required to provide those services. Mercer is not the primary beneficiary of these trusts or funds. Mercer’s maximum exposure to loss of its interests is, therefore, limited to collection of its fees.
|
Revenue | Revenue: The Company provides detailed discussion regarding its revenue policies in Note 2 to the consolidated financial statements.
|
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 United States 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 of an asset, 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 caption "Investment income (loss)" in the consolidated statements of income comprises realized and unrealized gains and losses from investments recognized in earnings. It includes, when applicable, other than temporary declines in the value of securities, mark-to-market increases or decreases in equity investments with readily determinable fair values and equity method gains or losses on the Company's investments in private equity funds. The Company holds investments in certain 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. Investment gains or losses for its proportionate share of the change in fair value of the funds are recorded in earnings. Investments using the equity method of accounting are included in "other assets" in the consolidated balance sheets.
|
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. In accordance with applicable accounting guidance, a company can assess qualitative factors to determine whether it is necessary to perform a goodwill impairment test. Alternatively, the company may elect to proceed directly to the quantitative goodwill impairment test. When a quantitative 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 elected to perform a quantitative impairment assessment during 2019. Other intangible assets, which primarily consist of acquired 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. |
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 by Oliver Wyman Group, a subsidiary of the Company, and other methods to estimate potential losses, including estimated legal costs. 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 tax provision and in evaluating uncertain tax positions and the ability to realize deferred tax assets. See Part II, Item 7. ("Management’s Discussion and Analysis of Financial Condition and Results of Operations" - Income Taxes) for a discussion of accounting policies governing the Company’s income tax provision. The Company reports 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 may require items 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.
|
Integration and Restructuring Charges | Integration and Restructuring Charges: Severance and related costs are recognized based on amounts due under established severance plans or estimates of one-time benefits that will be provided. Typically, severance benefits are recognized when the impacted colleagues are notified of their expected termination and such termination is expected to occur within the legally required notification period. These costs are included in compensation and benefits in the consolidated statements of income. Costs for real estate consolidation are recognized based on the type of cost, and the expected future use of the facility. For locations where the Company does not expect to sub-lease the property, the amortization of any right-of-use asset is accelerated from the decision date to the cease use date. For locations where the Company expects to sub-lease the properties subsequent to its vacating the property, the right-of-use asset is reviewed for potential impairment at the earlier of the cease use date or the date a sub-lease is signed. To determine the amount of impairment, the fair value of the right-of-use asset is determined based on the present value of the estimated net cash flows related to the property. Contractual costs outside of the right-of-use asset are recognized based on the net present value of expected future cash outflows for which the Company will not receive any benefit. Such amounts are reliant on estimates of future sub-lease income to be received and future contractual costs to be incurred. These costs are included in other operating expenses in the consolidated statements of income. Other costs related to integration and restructuring, such as moving, legal or consulting costs are recognized as incurred. These costs are included in other operating expenses in the consolidated statements of income.
|
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. 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. If a derivative is not designated as an accounting hedge, the change in fair value is recorded 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 recoverables. 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 Effective January 1, 2019: The following new accounting standard was adopted using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of January 1, 2019: Leases Effective January 1, 2019, the Company adopted new guidance intended to improve financial reporting for leases. Under the new guidance, a lessee is required to recognize assets and liabilities for leases. Consistent with legacy GAAP, the recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee will depend on the classification of the lease as financing or operating. However, unlike legacy GAAP, which requires that only capital leases are recognized on the balance sheet, the new guidance requires that both operating and financing leases be recognized on the balance sheet. The Company adopted this new standard using a modified retrospective method, applying the new guidance as of the beginning of the year of adoption, with a cumulative effect of initially applying the guidance recognized as an adjustment to retained earnings at January 1, 2019. Therefore, prior period information has not been restated. The Company has elected the package of practical expedients, which among other things, allows historical lease classifications to be carried forward. The Company did not elect the hindsight practical expedient in determining lease term and impairment of an entity's Right of Use Assets ("ROU assets"). On January 1, 2019, the Company recognized a lease liability of $1.9 billion and ROU asset of $1.7 billion, related to real estate operating leases. The ROU asset also reflected reclassification adjustments primarily from other liabilities related to existing deferred rent, unamortized lease incentives and restructuring liabilities of approximately $200 million upon adoption. There was no cumulative-effect adjustment required to be booked to retained earnings upon transition. The adoption of this standard did not have a material impact on our income statement as compared to prior periods. The following new accounting standards were adopted prospectively as of January 1, 2019: Derivatives and Hedging Effective January 1, 2019, the Company adopted new guidance intended to refine and expand hedge accounting for both financial and commodity risks. The guidance creates more transparency around how economic results are presented in both the financial statements and the footnotes, as well as making targeted improvements to simplify the application of hedge accounting guidance. The Company adopted this guidance effective January 1, 2019. The adoption of this standard did not have an impact on the Company's financial position or results of operations. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Effective January 1, 2019, the Company adopted new guidance that allowed an entity to reclassify the stranded tax effects resulting from the Tax Cuts and Job Act (the "TCJA") from accumulated other comprehensive income ("AOCI") to retained earnings. The guidance is effective for the period beginning January 1, 2019. The Company elected not to reclassify the stranded income tax effects of the TCJA from AOCI to retained earnings. The adoption of this standard had no impact on the Company's financial position or results of operations. The Company’s accounting policy related to releasing income tax effects from AOCI follows the portfolio approach. New Accounting Pronouncements Effective January 1, 2018: The following new accounting standards were adopted using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of January 1, 2018: Revenue Recognition Effective January 1, 2018, the Company adopted new accounting guidance related to revenue from contracts with customers. 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. The Company adopted the new guidance effective January 1, 2018, using the modified retrospective method, which applies the new guidance beginning with the year of adoption, with the cumulative effect of initially applying the guidance recognized as an adjustment to retained earnings at January 1, 2018. The Company elected to apply the modified retrospective method to all contracts. The cumulative effect of adopting the standard, net of tax, on January 1, 2018 resulted in an increase to the opening balance of retained earnings of $364 million, with offsetting increases/decreases to other balance sheet accounts (accounts receivable, other assets and deferred income taxes). Recognition and Measurement of Financial Instruments Effective January 1, 2018, the Company adopted new guidance intended to improve the recognition and measurement of financial instruments. The new guidance requires investments in equity securities (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and requires a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as "own credit") when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The Company holds certain equity investments that under legacy GAAP were previously treated as available for sale securities, whereby the mark-to-market change was recorded to AOCI in its consolidated balance sheet. The Company adopted the new accounting guidance, effective January 1, 2018, and recorded a cumulative- effect adjustment increase to retained earnings as of the beginning of the period of adoption of $14 million, reflecting the reclassification of cumulative unrealized gains, net of tax as of December 31, 2017 from AOCI to retained earnings. Income Tax Consequences of Intra-Entity Transfers Effective January 1, 2018, the Company adopted new guidance which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new guidance eliminates the exception for an intra-entity transfer of an asset other than inventory. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance was applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company adopted the new guidance effective January 1, 2018, and recorded a cumulative-effect adjustment decrease to retained earnings of approximately $14 million as of the beginning of the period of adoption. Adoption of amended accounting standard using the retrospective application approach Effective January 1, 2018, the Company adopted new guidance that changes the presentation of net periodic pension cost and net periodic postretirement cost (''net periodic benefit costs"). The new guidance requires employers to report the service cost component of net periodic benefit costs in the same line item as other compensation costs in the income statement. The other components of net periodic benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The new guidance required retrospective application for the presentation of the service cost component and the other components of net periodic benefit costs. Accordingly, the Company reclassified prior period information in the consolidated results of operations, segment data and related disclosures contained in our notes to the consolidated financial statements to reflect the retrospective adoption of this standard. New Accounting Pronouncements Not Yet Adopted In December 2019, the Financial Accounting Standards Board ("FASB") issued guidance related to the accounting for income taxes. The standard removes specific exceptions in the current rules and eliminates the need for an organization to analyze whether the following apply in a given period: (a) exception to the incremental approach for intraperiod tax allocation; (b) exceptions to accounting for basis differences when there are ownership changes in foreign investments and (c) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The standard also is designed to improve financial statement preparers’ application of income tax-related guidance and simplify GAAP for (a) franchise taxes that are partially based on income; (b) transactions with a government that result in a step-up in the tax basis of goodwill; (c) separate financial statements of legal entities that are not subject to tax and (d) enacted changes in tax laws in interim periods. The standard takes effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact this standard will have on the Company’s financial position. In August 2018, the FASB issued new guidance that amends required fair value measurement disclosures. The guidance adds new requirements, eliminates some current disclosures and modifies other required disclosures. The new disclosure requirements, along with modifications made to disclosures as a result of the change in requirements for narrative descriptions of measurement uncertainty, must be applied on a prospective basis. The effects of all other amendments included in the guidance must be applied retrospectively for all periods presented. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. Adoption of this guidance will impact disclosures only and will not have an impact on the Company's financial position or results of operations. In August 2018, the FASB issued new guidance that amends disclosures related to Defined Benefit Plans. The guidance removes disclosures that no longer are considered cost-beneficial, clarifies the specific requirements of certain disclosures, and adds disclosure requirements identified as relevant. The guidance must be applied on a retrospective basis. The guidance is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. Adoption of this guidance will impact disclosures only and will not have an impact on the Company's financial position or results of operations. In January 2017, the FASB issued new guidance to simplify the test for goodwill impairment. The new guidance eliminates the second step in the current two-step goodwill impairment process, under which a goodwill impairment loss is measured by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill for that reporting unit. The new guidance requires a one-step impairment test, in which the goodwill impairment charge is based on the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance should be applied on a prospective basis with the nature of and reason for the change in accounting principle disclosed upon transition. The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its financial position or results of operations. In June 2016, the FASB issued new guidance on the impairment of financial instruments. The new guidance adds an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of lifetime expected credit losses, which the FASB believes will result in more timely recognition of such losses. The new standard is also intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. Further, the new standard makes targeted changes to the impairment model for available-for-sale debt securities. The new standard is effective for public companies for annual reporting periods beginning after December 15, 2019, and interim periods therein. The adoption of this standard will not have a material impact on the Company's financial position or results of operations.
|
P7-IR>5&>.H^(*C)LD$"#A)3GC@%5++!!"@U2
M4L[ #RP\\>Y(
M?6_JX(RMB'<^>>N]UXH>]@6Y!J&$. 40C-#&'P9 HNS+5FF'!VU':8F+'LSO9NHD73WUO0<'G*
M_P%02P,$% @ >(544/DTKPB9 @ \P@ !D !X;"]W;W)K B;+&_SY:*NCI/Z
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M)[ Z672\7:N!)\1^LMEV!#QC5T-"!
MVVK]QB.(_D#G^[M5ZI;)@VZ*.O.:#A)C5(67"F;.]=PYYZ*)>#06#^]
M=W,]79@IL*J?WP*R/$CE;U!+ P04 " !XA5107:)#L#T_N[^22