News
Marsh & McLennan Companies Reports Third Quarter 2012 Results
November 6, 2012 at 7:01 AM EST
Media Contact
Email:media@mmc.com
Revenue and Profitability Growth Continues Across All Operating Companies
Third Quarter GAAP EPS Increases to
Double-Digit Growth in Adjusted Operating Income to
Double-Digit Increase in Adjusted EPS to
"Marsh's underlying revenue grew across all geographies, reflecting solid client revenue retention rates and continued new business development.
"For the nine months, we produced double-digit growth in operating income, substantial margin improvement, and excellent growth in earnings per share," concluded Mr. Duperreault.
Consolidated Results
Consolidated revenue in the third quarter of 2012 was
Income from continuing operations in the third quarter of 2012 was
For the nine months ended
Risk and Insurance Services
Risk and Insurance Services segment revenue in the third quarter of 2012 was
Marsh's revenue in the third quarter of 2012 was
Consulting
Consulting segment revenue in the third quarter of 2012 was
Mercer's revenue in the third quarter of 2012 was
Other Items
The Company had an investment loss of
On
Conference Call
A conference call to discuss third quarter 2012 results will be held today at
About
This press release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future events or results, use words like "anticipate," "assume," "believe," "continue," "estimate," "expect," "future," "intend," "plan," "project" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would." For example, we may use forward-looking statements when addressing topics such as: the outcome of contingencies; the expected impact of acquisitions and dispositions; pension obligations; market and industry conditions; the impact of foreign currency exchange rates; our effective tax rates; the impact of competition; changes in our business strategies and methods of generating revenue; the development and performance of our services and products; changes in the composition or level of our revenues; our cost structure, dividend policy, cash flow and liquidity; future actions by regulators; and the impact of changes in accounting rules.
Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements include, among other things:
- our exposure to potential liabilities arising from errors and omissions claims against us, particularly in our Marsh and Mercer businesses in the U.S. and the
U.K. ; - our ability to make strategic acquisitions and dispositions and to integrate, and realize expected synergies, savings or strategic benefits from the businesses we acquire;
- changes in the funded status of our global defined benefit pension plans and the impact of any increased pension funding resulting from those changes;
- the impact of any regional, national or global political, economic, regulatory or market conditions on our results of operations and financial condition, including the European debt crisis and market perceptions concerning the stability of the Euro;
- the impact of changes in interest rates and deterioration of counterparty credit quality on our results related to our cash balances and investment portfolios, including corporate and fiduciary funds;
- the impact on our net income caused by fluctuations in foreign currency exchange rates;
- the impact on our net income or cash flows and our effective tax rate in a particular period caused by settled tax audits and expired statutes of limitation;
- the extent to which we retain existing clients and attract new business, and our ability to incentivize and retain key employees;
- our exposure to potential criminal sanctions or civil remedies if we fail to comply with foreign and U.S. laws and regulations that are applicable to our international operations, including trade sanctions laws such as the Iran Threat Reduction and Syria Human Rights Act of 2012, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and the UK Bribery Act 2010, local laws prohibiting corrupt payments to government officials, as well as import and export restrictions;
- the impact of competition, including with respect to our geographic reach, the sophistication and quality of our services, our pricing relative to competitors, our customers' option to self-insure or utilize internal resources instead of consultants, and our corporate tax rates relative to our competitors;
- the potential impact of rating agency actions on our cost of financing and ability to borrow, as well as on our operating costs and competitive position;
- our ability to successfully recover should we experience a disaster or other business continuity problem;
- our ability to maintain adequate physical, technical and administrative safeguards to protect the security of our data;
- changes in applicable tax or accounting requirements; and
- potential income statement effects from the application of FASB's ASC Topic No. 740 ("Income Taxes") regarding accounting treatment of uncertain tax benefits and valuation allowances, including the effect of any subsequent adjustments to the estimates we use in applying this accounting standard.
The factors identified above are not exhaustive.
Marsh & McLennan Companies, Inc. | ||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||
(In millions, except per share figures) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
Revenue | $ | 2,845 | $ | 2,806 | $ | 8,922 | $ | 8,618 | ||||||||||||||||
Expense: | ||||||||||||||||||||||||
Compensation and Benefits | 1,760 | 1,753 | 5,332 | 5,202 | ||||||||||||||||||||
Other Operating Expenses | 707 | 743 | 2,167 | 2,169 | ||||||||||||||||||||
Operating Expenses | 2,467 | 2,496 | 7,499 | 7,371 | ||||||||||||||||||||
Operating Income | 378 | 310 | 1,423 | 1,247 | ||||||||||||||||||||
Interest Income | 6 | 9 | 18 | 21 | ||||||||||||||||||||
Interest Expense | (44 | ) | (49 | ) | (135 | ) | (149 | ) | ||||||||||||||||
Cost of Early Extinguishment of Debt | - | (72 | ) | - | (72 | ) | ||||||||||||||||||
Investment (Loss) Income | (4 | ) | - | 20 | 13 | |||||||||||||||||||
Income Before Income Taxes | 336 | 198 | 1,326 | 1,060 | ||||||||||||||||||||
Income Tax Expense | 90 | 65 | 387 | 322 | ||||||||||||||||||||
Income from Continuing Operations | 246 | 133 | 939 | 738 | ||||||||||||||||||||
Discontinued Operations, Net of Tax | 1 | 2 | (1 | ) | 17 | |||||||||||||||||||
Net Income Before Non-Controlling Interests | $ | 247 | $ | 135 | $ | 938 | $ | 755 | ||||||||||||||||
Less: Net Income Attributable to Non-Controlling Interest | 6 | 5 | 21 | 18 | ||||||||||||||||||||
Net Income Attributable to the Company | $ | 241 | $ | 130 | $ | 917 | $ | 737 | ||||||||||||||||
Basic Net Income Per Share | ||||||||||||||||||||||||
- Continuing Operations | $ | 0.44 | $ | 0.24 | $ | 1.68 | $ | 1.32 | ||||||||||||||||
- Net Income Attributable to the Company | $ | 0.44 | $ | 0.24 | $ | 1.68 | $ | 1.35 | ||||||||||||||||
Diluted Net Income Per Share | ||||||||||||||||||||||||
- Continuing Operations | $ | 0.43 | $ | 0.23 | $ | 1.66 | $ | 1.30 | ||||||||||||||||
- Net Income Attributable to the Company | $ | 0.44 | $ | 0.24 | $ | 1.66 | $ | 1.33 | ||||||||||||||||
Average Number of Shares Outstanding | ||||||||||||||||||||||||
- Basic | 544 | 540 | 544 | 543 | ||||||||||||||||||||
- Diluted | 552 | 549 | 552 | 552 | ||||||||||||||||||||
Shares Outstanding at 9/30 | 544 | 538 | 544 | 538 | ||||||||||||||||||||
Marsh & McLennan Companies, Inc. | ||||||||||||||||||||||||||
Supplemental Information - Revenue Analysis | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
(Millions) (Unaudited) | ||||||||||||||||||||||||||
Components of Revenue Change* | ||||||||||||||||||||||||||
Three Months Ended |
% Change |
Currency |
Acquisitions/ |
Underlying | ||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||
Risk and Insurance Services | ||||||||||||||||||||||||||
Marsh |
$ |
1,251 |
$ |
1,210 |
3% |
(3)% |
2% |
4% | ||||||||||||||||||
Guy Carpenter | 249 | 251 |
(1)% |
(1)% |
- |
1% | ||||||||||||||||||||
Subtotal |
1,500 |
1,461 |
3% |
(3)% |
2% |
4% | ||||||||||||||||||||
Fiduciary Interest Income | 10 | 14 | ||||||||||||||||||||||||
Total Risk and Insurance Services |
1,510 |
1,475 |
2% |
(3)% |
2% |
4% | ||||||||||||||||||||
Consulting | ||||||||||||||||||||||||||
Mercer | 995 | 975 |
2% |
(3)% |
2% |
3% | ||||||||||||||||||||
Oliver Wyman Group | 351 | 364 |
(3)% |
(4)% |
(3)% |
3% | ||||||||||||||||||||
Total Consulting | 1,346 | 1,339 |
1% |
(3)% |
- |
3% | ||||||||||||||||||||
Corporate / Eliminations |
(11) |
(8) |
||||||||||||||||||||||||
Total Revenue |
$ |
2,845 |
$ |
2,806 |
1% |
(3)% |
1% |
3% | ||||||||||||||||||
Revenue Details | ||||||||||||||||||||||||||
The following table provides more detailed revenue information for certain of the components presented above: | ||||||||||||||||||||||||||
Components of Revenue Change* | ||||||||||||||||||||||||||
Three Months Ended |
% Change |
Currency |
Acquisitions/ |
Underlying | ||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||
Marsh: | ||||||||||||||||||||||||||
EMEA |
$ |
376 |
$ |
367 |
2% |
(7)% |
4% |
5% | ||||||||||||||||||
Asia Pacific | 165 | 158 |
5% |
(2)% |
- |
7% | ||||||||||||||||||||
Latin America | 81 | 84 |
(4)% |
(9)% |
- |
5% | ||||||||||||||||||||
Total International | 622 | 609 |
2% |
(6)% |
3% |
6% | ||||||||||||||||||||
U.S. / Canada | 629 | 601 |
5% |
- |
2% |
3% | ||||||||||||||||||||
Total Marsh |
$ |
1,251 |
$ |
1,210 |
3% |
(3)% |
2% |
4% | ||||||||||||||||||
Mercer: | ||||||||||||||||||||||||||
Retirement |
$ |
252 |
$ |
261 |
(3)% |
(4)% |
1% |
- | ||||||||||||||||||
Health and Benefits | 256 | 239 |
7% |
(3)% |
3% |
7% | ||||||||||||||||||||
Talent, Rewards & Communications | 179 | 173 |
3% |
(3)% |
5% |
1% | ||||||||||||||||||||
Outsourcing | 179 | 186 |
(3)% |
(1)% |
(4)% |
2% | ||||||||||||||||||||
Investments | 129 | 116 |
11% |
(3)% |
4% |
10% | ||||||||||||||||||||
Total Mercer |
$ |
995 |
$ |
975 |
2% |
(3)% |
2% |
3% |
Notes |
Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of certain items such as: acquisitions, dispositions and transfers among businesses. |
* Components of revenue change may not add due to rounding. |
Marsh & McLennan Companies, Inc. | ||||||||||||||||||||||||||
Supplemental Information - Revenue Analysis | ||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
(Millions) (Unaudited) | ||||||||||||||||||||||||||
Components of Revenue Change* | ||||||||||||||||||||||||||
Nine Months Ended |
% Change |
Currency |
Acquisitions/ |
Underlying | ||||||||||||||||||||||
2012 | 2011 |
|
||||||||||||||||||||||||
Risk and Insurance Services | ||||||||||||||||||||||||||
Marsh |
$ |
4,043 |
$ |
3,845 |
5% |
(3)% |
2% |
6% | ||||||||||||||||||
Guy Carpenter | 881 | 848 |
4% |
(1)% |
(1)% |
6% | ||||||||||||||||||||
Subtotal | 4,924 | 4,693 |
5% |
(2)% |
2% |
6% | ||||||||||||||||||||
Fiduciary Interest Income | 31 | 36 | ||||||||||||||||||||||||
Total Risk and Insurance Services | 4,955 | 4,729 |
5% |
(2)% |
2% |
6% | ||||||||||||||||||||
Consulting | ||||||||||||||||||||||||||
Mercer | 2,912 | 2,842 |
2% |
(2)% |
1% |
3% | ||||||||||||||||||||
Oliver Wyman Group | 1,088 | 1,077 |
1% |
(3)% |
(2)% |
6% | ||||||||||||||||||||
Total Consulting |
4,000 |
3,919 |
2% |
(2)% |
- | 4% | ||||||||||||||||||||
Corporate / Eliminations |
(33) |
(30) |
||||||||||||||||||||||||
Total Revenue |
$ |
8,922 |
$ |
8,618 |
4% |
(2)% |
1% |
5% | ||||||||||||||||||
Revenue Details | ||||||||||||||||||||||||||
The following table provides more detailed revenue information for certain of the components presented above: | ||||||||||||||||||||||||||
Components of Revenue Change* | ||||||||||||||||||||||||||
|
Nine Months Ended |
% Change |
Currency |
Acquisitions/ |
Underlying | |||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||
Marsh: | ||||||||||||||||||||||||||
EMEA |
$ |
1,408 |
$ |
1,363 |
3% |
(6)% |
4% |
5% | ||||||||||||||||||
Asia Pacific | 488 | 452 |
8% |
(1)% |
- | 9% | ||||||||||||||||||||
Latin America | 242 | 228 |
6% |
(6)% |
- | 12% | ||||||||||||||||||||
Total International | 2,138 | 2,043 |
5% |
(5)% |
3% |
7% | ||||||||||||||||||||
U.S. / Canada | 1,905 | 1,802 |
6% |
- |
2% |
4% | ||||||||||||||||||||
Total Marsh |
$ |
4,043 |
$ |
3,845 |
5% |
(3)% |
2% |
6% | ||||||||||||||||||
Mercer: | ||||||||||||||||||||||||||
Retirement |
$ |
797 |
$ |
813 |
(2)% |
(3)% |
1% |
- | ||||||||||||||||||
Health and Benefits | 764 | 717 |
7% |
(2)% |
2% |
7% | ||||||||||||||||||||
Talent, Rewards & Communications | 436 | 417 |
5% |
(2)% |
5% |
2% | ||||||||||||||||||||
Outsourcing | 534 | 550 |
(3)% |
(1)% |
(4)% |
2% | ||||||||||||||||||||
Investments | 381 | 345 |
10% |
(2)% |
5% |
8% | ||||||||||||||||||||
Total Mercer |
$ |
2,912 |
$ |
2,842 |
2% |
(2)% |
1% |
3 % | ||||||||||||||||||
Notes |
Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of certain items such as: acquisitions, dispositions and transfers among businesses. |
* Components of revenue change may not add due to rounding. |
Non-GAAP Measures
Three Months Ended
(Millions) (Unaudited)
The Company presents below certain additional financial measures that are "non-GAAP measures," within the meaning of Regulation G under the Securities Exchange Act of 1934. These measures are: adjusted operating income (loss); adjusted operating margin; and adjusted income, net of tax. |
The Company presents these non-GAAP measures to provide investors with additional information to analyze the Company's performance from period to period. Management also uses these measures to assess performance for incentive compensation purposes and to allocate resources in managing the Company's businesses. However, investors should not consider these non-GAAP measures in isolation from, or as a substitute for, the financial information that the Company reports in accordance with GAAP. The Company's non-GAAP measures reflect subjective determinations by management, and may differ from similarly titled non-GAAP measures presented by other companies. |
Adjusted Operating Income (Loss) and Adjusted Operating Margin |
Adjusted operating income (loss) is calculated by excluding the impact of certain noteworthy items from the Company's GAAP operating income or loss. The following tables identify these noteworthy items and reconcile adjusted operating income (loss) to GAAP operating income or (loss), on a consolidated and segment basis, for the three months ended September 30, 2012 and 2011. The following tables also present adjusted operating margin, which is calculated by dividing adjusted operating income by consolidated or segment GAAP revenue. |
Risk & |
Consulting |
Corporate/ |
Total | |||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Operating income (loss) | $ | 234 | $ | 193 | $ |
(49) |
$ | 378 | ||||||||||||
Add (deduct) impact of noteworthy items: | ||||||||||||||||||||
Restructuring charges (a) | 6 | - | 4 | 10 | ||||||||||||||||
Adjustments to acquisition related accounts (b) |
(25) |
(1) |
- |
(26) | ||||||||||||||||
Other |
(2) |
- |
(2) |
(4) | ||||||||||||||||
Operating income adjustments |
(21) |
(1) |
2 |
(20) | ||||||||||||||||
Adjusted operating income (loss) | $ | 213 | $ | 192 | $ |
(47) |
$ | 358 | ||||||||||||
Operating margin |
15.5% |
14.3% |
N/A |
13.3% | ||||||||||||||||
Adjusted operating margin |
14.1% |
14.3% |
N/A |
12.6% | ||||||||||||||||
Three Months Ended September 30, 2011 | ||||||||||||||||||||
Operating income (loss) | $ | 186 | $ | 161 | $ |
(37) |
$ |
310 | ||||||||||||
Add (deduct) impact of noteworthy items: | ||||||||||||||||||||
Restructuring charges (a) | 3 | 7 | 1 | 11 | ||||||||||||||||
Adjustments to acquisition related accounts (b) | 3 | - |
- |
3 | ||||||||||||||||
Other |
(3) |
- |
(1) |
(4) | ||||||||||||||||
Operating income adjustments | 3 | 7 | - | 10 | ||||||||||||||||
Adjusted operating income (loss) | $ | 189 | $ | 168 | $ |
(37) |
$ | 320 | ||||||||||||
Operating margin |
12.6% |
12.0% |
N/A |
11.0% | ||||||||||||||||
Adjusted operating margin |
12.8% |
12.5% |
N/A |
11.4% |
(a) Includes severance from restructuring activities and related charges, costs for future rent and other real estate costs, and fees related to recent acquisitions and cost reduction activities. |
(b) Reflects the change from the re-measurement to fair value each quarter of contingent acquisition consideration, net of an $8 million impairment charge of an identifiable intangible asset in 2012. |
Non-GAAP Measures
Nine Months Ended
(Millions) (Unaudited)
The Company presents below certain additional financial measures that are "non-GAAP measures," within the meaning of Regulation G under the Securities Exchange Act of 1934. These measures are: adjusted operating income (loss); adjusted operating margin; and adjusted income, net of tax. |
The Company presents these non-GAAP measures to provide investors with additional information to analyze the Company's performance from period to period. Management also uses these measures to assess performance for incentive compensation purposes and to allocate resources in managing the Company's businesses. However, investors should not consider these non-GAAP measures in isolation from, or as a substitute for, the financial information that the Company reports in accordance with GAAP. The Company's non-GAAP measures reflect subjective determinations by management, and may differ from similarly titled non-GAAP measures presented by other companies. |
Adjusted Operating Income (Loss) and Adjusted Operating Margin |
Adjusted operating income (loss) is calculated by excluding the impact of certain noteworthy items from the Company's GAAP operating income or loss. The following tables identify these noteworthy items and reconcile adjusted operating income (loss) to GAAP operating income or (loss), on a consolidated and segment basis, for the nine months ended September 30, 2012 and 2011. The following tables also present adjusted operating margin, which is calculated by dividing adjusted operating income by consolidated or segment GAAP revenue. |
Risk & |
Consulting |
Corporate/ |
Total | |||||||||||||||||||||
|
||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
Operating income (loss) |
$ |
1,052 |
$ |
524 |
$ |
(153 |
) |
$ |
1,423 |
|||||||||||||||
Add (deduct) impact of noteworthy items: | ||||||||||||||||||||||||
Restructuring charges (a) | 6 | 7 | 8 | 21 | ||||||||||||||||||||
Adjustments to acquisition related accounts (b) |
(20 |
) |
(3 |
) |
- |
(23 |
) | |||||||||||||||||
Other |
(2 |
) |
- |
(5 |
) |
(7 |
) | |||||||||||||||||
Operating income adjustments |
(16 |
) |
4 | 3 |
(9 |
) | ||||||||||||||||||
Adjusted operating income (loss) |
$ |
1,036 |
$ |
528 |
$ |
(150 |
) |
$ |
1,414 |
|||||||||||||||
Operating margin |
21.2 |
% |
13.1 |
% |
N/A |
15.9 |
% | |||||||||||||||||
Adjusted operating margin |
20.9 |
% |
13.2 |
% |
N/A |
15.8 |
% | |||||||||||||||||
Nine Months Ended September 30, 2011 | ||||||||||||||||||||||||
Operating income (loss) |
$ |
925 |
$ |
441 |
$ |
(119 |
) |
$ |
1,247 |
|||||||||||||||
Add (deduct) impact of noteworthy items: | ||||||||||||||||||||||||
Restructuring charges (a) | 1 | 12 | 3 | 16 | ||||||||||||||||||||
Adjustments to acquisition related accounts (b) |
(3 |
) |
- | - |
(3 |
) | ||||||||||||||||||
Other |
(5 |
) |
- |
(6 |
) |
(11 |
) | |||||||||||||||||
Operating income adjustments |
(7 |
) |
12 |
(3 |
) |
2 | ||||||||||||||||||
Adjusted operating income (loss) |
$ |
918 |
$ |
453 |
$ |
(122 |
) |
$ |
1,249 |
|||||||||||||||
Operating margin |
19.6 |
% |
11.3 |
% |
N/A |
14.5 |
% | |||||||||||||||||
Adjusted operating margin |
19.4 |
% |
11.6 |
% |
N/A |
14.5 |
% |
(a) Includes severance from restructuring activities and related charges, costs for future rent and other real estate costs, and fees related to recent acquisitions and cost reduction activities. |
(b) Reflects the change from the re-measurement to fair value each quarter of contingent acquisition consideration, net of an $8 million impairment charge of an identifiable intangible asset in 2012. |
Non-GAAP Measures
Three and Nine Months Ended
(Millions) (Unaudited)
Adjusted income, net of tax |
Adjusted income, net of tax is calculated as: the Company's GAAP income from continuing operations, adjusted to reflect the after-tax impact of the operating income adjustments set forth in the preceding table. The related adjusted diluted earnings per share as calculated under the two-class method, reflects reductions for the portion of each item attributable to non-controlling interests and participating securities so that the calculation is based only on the amounts attributable to common shareholders. |
Reconciliation of the Impact of Non-GAAP Measures on diluted earnings per share - Three and Nine Months Ended
Amount | Diluted EPS | |||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||
Income from continuing operations |
$ |
246 |
||||||||||||||||
Less: Non-controlling interest, net of tax | 6 | |||||||||||||||||
Amount attributable to participating securities | - | |||||||||||||||||
Subtotal |
$ |
240 |
$ |
0.43 |
||||||||||||||
(Deduct) operating loss adjustments |
$ |
(20 |
) |
|||||||||||||||
Deduct impact of income taxes |
(4 |
) |
||||||||||||||||
(24 |
) |
(0.04 |
) | |||||||||||||||
Adjusted income, net of tax |
$ |
216 |
$ |
0.39 |
||||||||||||||
Amount | Diluted EPS | |||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||
Income from continuing operations |
$ |
939 |
||||||||||||||||
Less: Non-controlling interest, net of tax | 21 | |||||||||||||||||
Amount attributable to participating securities | 2 | |||||||||||||||||
Subtotal |
$ |
916 |
$ |
1.66 |
||||||||||||||
(Deduct) operating loss adjustments |
$ |
(9 |
) |
|||||||||||||||
Deduct impact of income taxes |
(7 |
) |
||||||||||||||||
(16 |
) |
(0.03 |
) | |||||||||||||||
Adjusted income, net of tax |
$ |
900 |
$ |
1.63 |
||||||||||||||
Amount | Diluted EPS | |||||||||||||||||
Three Months Ended September 30, 2011 | ||||||||||||||||||
Income from continuing operations |
$ |
133 |
||||||||||||||||
Less: Non-controlling interest, net of tax | 5 | |||||||||||||||||
Amount attributable to participating securities | 1 | |||||||||||||||||
Subtotal |
$ |
127 |
$ |
0.23 |
||||||||||||||
Add operating income adjustments |
$ |
10 |
||||||||||||||||
Deduct impact of income taxes |
(3 |
) |
||||||||||||||||
7 | 0.01 | |||||||||||||||||
Adjusted income, net of tax |
$ |
134 |
$ |
0.24 |
||||||||||||||
Amount | Diluted EPS | |||||||||||||||||
Nine Months Ended September 30, 2011 | ||||||||||||||||||
Income from continuing operations |
$ |
738 |
||||||||||||||||
Less: Non-controlling interest, net of tax | 18 | |||||||||||||||||
Amount attributable to participating securities | 5 | |||||||||||||||||
Subtotal |
$ |
715 |
$ |
1.30 |
||||||||||||||
Add operating income adjustments |
$ |
2 |
||||||||||||||||
Add impact of income taxes | 1 | |||||||||||||||||
3 | - | |||||||||||||||||
Adjusted income, net of tax |
$ |
718 |
$ |
1.30 |
||||||||||||||
|
The results in the table above are not adjusted for debt extinguishment costs of
Marsh & McLennan Companies, Inc. | |||||||||||||||||||
Supplemental Information | |||||||||||||||||||
(Millions) (Unaudited) | |||||||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||
Depreciation and amortization expense | $ | 87 | $ | 85 | $ | 254 | $ | 250 | |||||||||||
Stock option expense | $ | 3 | $ | 4 | $ | 23 | $ | 16 | |||||||||||
Capital expenditures | $ | 100 | $ | 63 | $ | 249 | $ | 205 |
Marsh & McLennan Companies, Inc. | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
(Millions) (Unaudited) | ||||||||||||
September 30, |
December 31, | |||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 2,044 | $ | 2,113 | ||||||||
Net receivables | 3,059 | 2,906 | ||||||||||
Other current assets | 548 | 629 | ||||||||||
Total current assets | 5,651 | 5,648 | ||||||||||
Goodwill and intangible assets | 7,113 | 6,963 | ||||||||||
Fixed assets, net | 807 | 804 | ||||||||||
Pension related assets | 225 | 39 | ||||||||||
Deferred tax assets | 1,192 | 1,205 | ||||||||||
Other assets | 748 | 795 | ||||||||||
TOTAL ASSETS | $ | 15,736 | $ | 15,454 | ||||||||
LIABILITIES AND EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Short-term debt | $ | 259 | $ | 260 | ||||||||
Accounts payable and accrued liabilities | 1,742 | 2,016 | ||||||||||
Accrued compensation and employee benefits | 1,225 | 1,400 | ||||||||||
Accrued income taxes | 154 | 63 | ||||||||||
Dividends payable | 126 | - | ||||||||||
Total current liabilities | 3,506 | 3,739 | ||||||||||
Fiduciary liabilities | 4,044 | 4,082 | ||||||||||
Less - cash and investments held in a fiduciary capacity | (4,044 | ) | (4,082 | ) | ||||||||
- | - | |||||||||||
Long-term debt | 2,660 | 2,668 | ||||||||||
Pension, post-retirement and post-employment benefits | 1,594 | 1,655 | ||||||||||
Liabilities for errors and omissions | 476 | 468 | ||||||||||
Other liabilities | 920 | 984 | ||||||||||
Total equity | 6,580 | 5,940 | ||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 15,736 | $ | 15,454 |
Source:
Marsh & McLennan Companies
Media
Jeremy Lehrman, +1 212 345 9775
jeremy.lehrman@mmc.com
or
Investor
Scott Douglas, +1 212 345 5488
scott.d.douglas@mmc.com