News
Marsh & McLennan Companies Reports First Quarter 2019 Results
April 25, 2019 at 7:01 AM EDT
Media Contact
Email:media@mmc.com
Underlying Revenue Increases 4%
GAAP Operating Income Rises 3% to
Strong Growth in Adjusted Operating Income of 11% to
GAAP EPS Grows to
"With our successful completion of the acquisition of
Consolidated Results
Consolidated revenue in the first quarter of 2019 was
Net income attributable to the Company was
Risk & Insurance Services
Risk & Insurance Services revenue was
Marsh's revenue in the first quarter was
Consulting
Consulting revenue in the first quarter was
Mercer's revenue was
Oliver Wyman Group's revenue was
Other Items
On
As part of the financing for the acquisition of JLT, the Company issued
€1.1 billion aggregate principal amount of senior notes in
Conference Call
A conference call to discuss first quarter 2019 results will be held
today at
About
INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS
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," "intend," "plan," "project" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would."
Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. Factors that could materially affect our future results include, among other things:
- our ability to successfully integrate or achieve the intended benefits of the acquisition of JLT;
-
the impact of any investigations, reviews, or other activity by
regulatory or law enforcement authorities, including the ongoing
investigations by the
European Commission competition authority; - 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 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 patch software vulnerabilities;
- our ability to compete effectively and adapt to changes in the competitive environment, including to respond to disintermediation, digital disruption and other types of innovation;
- the financial and operational impact of complying with laws and regulations where we operate, including cybersecurity and data privacy regulations such as the E.U.'s General Data Protection Regulation, anti-corruption laws and trade sanctions regimes;
- the impact of macroeconomic, political, regulatory or market conditions on us, our clients and the industries in which we operate, including the impact and uncertainty around Brexit or the inability to collect on our receivables;
- the regulatory, contractual and reputational risks that arise based on insurance placement activities and various broker revenue streams;
- 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;
- our ability to successfully recover if we experience a business continuity problem due to cyberattack, natural disaster or otherwise;
- 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;
-
our ability to 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 impact of fluctuations in foreign exchange and interest rates on our results; and
- the impact of changes in accounting rules or in our accounting estimates or assumptions, including the impact of the adoption of the new lease accounting standard.
The factors identified above are not exhaustive.
Further information concerning
Marsh & McLennan Companies, Inc. | |||||||||
Consolidated Statements of Income | |||||||||
(In millions, except per share figures) |
|||||||||
(Unaudited) |
|||||||||
Three Months Ended March 31, |
|||||||||
2019 | 2018 | ||||||||
Revenue | $ | 4,071 | $ | 4,000 | |||||
Expense: | |||||||||
Compensation and Benefits | 2,282 | 2,224 | |||||||
Other Operating Expenses | 851 | 868 | |||||||
Operating Expenses | 3,133 | 3,092 | |||||||
Operating Income | 938 | 908 | |||||||
Other Net Benefit Credits | 64 | 66 | |||||||
Interest Income | 28 | 3 | |||||||
Interest Expense | (120 | ) | (61 | ) | |||||
Investment Income | 5 | — | |||||||
Acquisition Related Derivative Contracts (a) | 29 | — | |||||||
Income Before Income Taxes | 944 | 916 | |||||||
Income Tax Expense | 217 | 220 | |||||||
Net Income Before Non-Controlling Interests | 727 | 696 | |||||||
Less: Net Income Attributable to Non-Controlling Interests | 11 | 6 | |||||||
Net Income Attributable to the Company | $ | 716 | $ | 690 | |||||
Net Income Per Share Attributable to the Company: | |||||||||
- Basic | $ | 1.42 | $ | 1.36 | |||||
- Diluted | $ | 1.40 | $ | 1.34 | |||||
Average Number of Shares Outstanding | |||||||||
- Basic | 505 | 508 | |||||||
- Diluted | 511 | 514 | |||||||
Shares Outstanding at March 31 | 507 | 508 | |||||||
(a) Net gains from hedging contracts related to the JLT acquisition. |
Marsh & McLennan Companies, Inc. | |||||||||||||||||||||||||
Supplemental Information - Revenue Analysis | |||||||||||||||||||||||||
Three Months Ended March 31, 2019 | |||||||||||||||||||||||||
(Millions) (Unaudited) | |||||||||||||||||||||||||
Components of Revenue Change* | |||||||||||||||||||||||||
Three Months Ended |
% |
Currency |
Acquisitions/
Dispositions/ |
Underlying |
|||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||
Risk and Insurance Services | |||||||||||||||||||||||||
Marsh | $ | 1,737 | $ | 1,694 | 3 | % | (3 | )% | 1 | % | 5 | % | |||||||||||||
Guy Carpenter | 663 | 637 | 4 | % | (2 | )% | — | 6 | % | ||||||||||||||||
Subtotal | 2,400 | 2,331 | 3 | % | (3 | )% | 1 | % | 5 | % | |||||||||||||||
Fiduciary Interest Income | 23 | 13 | |||||||||||||||||||||||
Total Risk and Insurance Services | 2,423 | 2,344 | 3 | % | (3 | )% | 1 | % | 5 | % | |||||||||||||||
Consulting | |||||||||||||||||||||||||
Mercer | 1,155 | 1,171 | (1 | )% | (4 | )% | 2 | % | — | ||||||||||||||||
Oliver Wyman Group | 518 | 497 | 4 | % | (3 | )% | — | 7 | % | ||||||||||||||||
Total Consulting | 1,673 | 1,668 | — | (3 | )% | 2 | % | 2 | % | ||||||||||||||||
Corporate/Eliminations | (25 | ) | (12 | ) | |||||||||||||||||||||
Total Revenue | $ | 4,071 | $ | 4,000 | 2 | % | (3 | )% | 1 | % | 4 | % | |||||||||||||
Revenue Details |
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The following table provides more detailed revenue information for certain of the components presented above: |
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|
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Components of Revenue Change* | |||||||||||||||||||||||||
Three Months Ended |
%
GAAP |
Currency |
Acquisitions/ |
Underlying |
|||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||
Marsh: | |||||||||||||||||||||||||
EMEA | $ | 633 | $ | 643 | (2 | )% | (6 | )% | 1 | % | 3 | % | |||||||||||||
Asia Pacific | 165 | 164 | 1 | % | (4 | )% | (3 | )% | 8 | % | |||||||||||||||
Latin America | 78 | 84 | (7 | )% | (13 | )% | (4 | )% | 11 | % | |||||||||||||||
Total International | 876 | 891 | (2 | )% | (6 | )% | — | 5 | % | ||||||||||||||||
U.S./Canada | 861 | 803 | 7 | % | — | 3 | % | 5 | % | ||||||||||||||||
Total Marsh | $ | 1,737 | $ | 1,694 | 3 | % | (3 | )% | 1 | % | 5 | % | |||||||||||||
Mercer: | |||||||||||||||||||||||||
Wealth | 543 | 565 | (4 | )% | (5 | )% | 4 | % | (3 | )% | |||||||||||||||
Health | 442 | 442 | — | (2 | )% | (1 | )% | 3 | % | ||||||||||||||||
Career | 170 | 164 | 4 | % | (4 | )% | 5 | % | 2 | % | |||||||||||||||
Total Mercer | $ | 1,155 | $ | 1,171 | (1 | )% | (4 | )% | 2 | % | — | ||||||||||||||
Notes |
Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of certain items that affect comparability such as: acquisitions, dispositions, transfers among businesses, and changes in estimate methodology. |
* Components of revenue change may not add due to rounding. |
Reconciliation of
Non-GAAP Measures
Three Months Ended
(Millions)
(Unaudited)
Overview |
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (referred to in this release as "GAAP" or "reported" results). The Company also refers to and presents below certain additional non-GAAP financial measures, within the meaning of Regulation G under the Securities Exchange Act of 1934. These measures are: adjusted operating income (loss), adjusted operating margin, adjusted income, net of tax and adjusted earnings per share (EPS). The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP in the following tables. |
The Company believes these non-GAAP financial measures provide useful supplemental information that enables investors to better compare the Company's performance across periods. Management also uses these measures internally to assess the operating performance of its businesses, to assess performance for employee compensation purposes and to decide how to allocate resources. 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 include adjustments that reflect how management views our businesses, 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 March 31, 2019 and 2018. The following tables also present adjusted operating margin. In 2019, the Company changed its methodology for calculating adjusted operating margin due to the significant amount of identified intangible asset amortization expected after completion of the JLT Transaction, on April 1, 2019. Effective for the three months ended March 31, 2019 and 2018, adjusted operating margin is calculated by dividing the sum of adjusted operating income plus identified intangible asset amortization by consolidated or segment adjusted revenue. See page 12 for additional information related to adjusted operating margin. |
Risk & |
Consulting |
Corporate/ |
Total | ||||||||||||||
Three Months Ended March 31, 2019 | |||||||||||||||||
Operating income (loss) | $ | 733 | $ | 279 | $ | (74 | ) | $ | 938 | ||||||||
Operating margin | 30.2 | % | 16.7 | % | N/A | 23.0 | % | ||||||||||
Add impact of Noteworthy Items: | |||||||||||||||||
Restructuring (a) | 5 | 11 | 2 | 18 | |||||||||||||
Adjustments to acquisition related accounts (b) | 10 | 1 | — | 11 | |||||||||||||
JLT acquisition and integration related costs (c) | 25 | — | 22 | 47 | |||||||||||||
Other | 2 | — | — | 2 | |||||||||||||
Operating income adjustments | 42 | 12 | 24 | 78 | |||||||||||||
Adjusted operating income (loss) | $ | 775 | $ | 291 | $ | (50 | ) | $ | 1,016 | ||||||||
Identified intangible amortization expense | $ | 41 | $ | 10 | $ | — | $ | 51 | |||||||||
Adjusted operating margin | 33.6 | % | 18.0 | % | N/A | 26.2 | % | ||||||||||
Three Months Ended March 31, 2018 | |||||||||||||||||
Operating income (loss) | $ | 716 | $ | 247 | $ | (55 | ) | $ | 908 | ||||||||
Operating margin | 30.5 | % | 14.8 | % | N/A | 22.7 | % | ||||||||||
Add impact of Noteworthy Items: | |||||||||||||||||
Restructuring (a) | 3 | 1 | 2 | 6 | |||||||||||||
Adjustments to acquisition related accounts (b) | 4 | — | — | 4 | |||||||||||||
Operating income adjustments | 7 | 1 | 2 | 10 | |||||||||||||
Adjusted operating income (loss) | $ | 723 | $ | 248 | $ | (53 | ) | $ | 918 | ||||||||
Identified intangible amortization expense | $ | 37 | $ | 8 | $ | — | $ | 45 | |||||||||
Adjusted operating margin | 32.5 | % | 15.3 | % | N/A | 24.1 | % | ||||||||||
(a) 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. |
(b) Primarily includes the change in fair value as measured each quarter of contingent consideration related to acquisitions. |
(c) Includes restructuring costs incurred in Marsh and Corporate of $20 million for staff reductions made in anticipation of closing the JLT transaction, as well as acquisition and integration costs, primarily legal and consulting costs. |
Reconciliation of
Non-GAAP Measures
Three Months Ended
(Millions)
(Unaudited)
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 tables and investments gains or losses related to the impact of mark-to-market adjustments on certain equity securities and adjustments to provisional 2017 tax estimates. Adjustments also include JLT acquisition related items, including change in fair value of derivative contracts, financing costs and interest income on funds held in escrow. Adjusted EPS is calculated by dividing the Company's adjusted income, net of tax, by MMC's average number of shares outstanding-diluted for the relevant period. The following tables reconcile adjusted income, net of tax to GAAP income from continuing operations and adjusted EPS to GAAP EPS for the three months ended March 31, 2019 and 2018. |
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||
Amount |
Adjusted |
Amount |
Adjusted |
|||||||||||||||||||||
Net income before non-controlling interests | $ | 727 | $ | 696 | ||||||||||||||||||||
Less: Non-controlling interest, net of tax | 11 | 6 | ||||||||||||||||||||||
Subtotal | $ | 716 | $ | 1.40 | $ | 690 | $ | 1.34 | ||||||||||||||||
Operating income adjustments | $ | 78 | $ | 10 | ||||||||||||||||||||
Investments adjustment (a) | (4 | ) | 8 | |||||||||||||||||||||
Change in fair value of acquisition related |
(29 | ) | — | |||||||||||||||||||||
Financing costs (c) | 54 | — | ||||||||||||||||||||||
Interest on funds held in escrow (d) | (25 | ) | — | |||||||||||||||||||||
Impact of income taxes on above items | (12 | ) | (4 | ) | ||||||||||||||||||||
Adjustments to provisional 2017 tax estimates (e) | — | 3 | ||||||||||||||||||||||
62 | 0.12 | 17 | 0.04 | |||||||||||||||||||||
Adjusted income, net of tax | $ | 778 | $ | 1.52 | $ | 707 | $ | 1.38 | ||||||||||||||||
(a) The Company recorded mark-to-market gains of $4 million and losses of $8 million for the three month period ended March 31, 2019 and March 31, 2018, respectively, which are included in investment income in the consolidated statements of income. |
(b) Primarily reflects the gain related to the change in fair value of the deal contingent foreign exchange contract partly offset by the impact of derivative contracts related to the debt issuances. |
(c) Reflects interest expense on debt issuances and amortization of bridge financing fees related to the acquisition of JLT included in interest expense for the quarter ended March 31, 2019. |
(d) Interest income earned on funds held in escrow related to the JLT acquisition. |
(e) Reflects adjustments to provisional 2017 year-end estimates of transition taxes and U.S. deferred tax assets and liabilities from U.S. tax reform. |
Marsh & McLennan Companies, Inc. | ||||||||
Supplemental Information | ||||||||
Three Months Ended March 31 | ||||||||
(Millions) (Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Consolidated | ||||||||
Compensation and Benefits | $ | 2,282 | $ | 2,224 | ||||
Other Operating Expenses | 851 | 868 | ||||||
Total Expenses | $ | 3,133 | $ | 3,092 | ||||
Depreciation and amortization expense | $ | 74 | $ | 80 | ||||
Identified intangible amortization expense | 51 | 45 | ||||||
Total | $ | 125 | $ | 125 | ||||
Stock option expense | $ | 15 | $ | 14 | ||||
Risk and Insurance Services | ||||||||
Compensation and Benefits | $ | 1,221 | $ | 1,168 | ||||
Other Operating Expenses | 469 | 460 | ||||||
Total Expenses | $ | 1,690 | $ | 1,628 | ||||
Depreciation and amortization expense | $ | 32 | $ | 37 | ||||
Identified intangible amortization expense | 41 | 37 | ||||||
Total | $ | 73 | $ | 74 | ||||
Consulting | ||||||||
Compensation and Benefits | $ | 956 | $ | 956 | ||||
Other Operating Expenses | 438 | 465 | ||||||
Total Expenses | $ | 1,394 | $ | 1,421 | ||||
Depreciation and amortization expense | $ | 24 | $ | 25 | ||||
Identified intangible amortization expense | 10 | 8 | ||||||
Total | $ | 34 | $ | 33 | ||||
Marsh & McLennan Companies, Inc. | |||||||||
Consolidated Balance Sheets | |||||||||
(Millions) | |||||||||
(Unaudited) |
December 31, |
||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 1,117 | $ | 1,066 | |||||
Net receivables | 4,630 | 4,317 | |||||||
Funds held in escrow for acquisition | 6,359 | — | |||||||
Other current assets | 569 | 551 | |||||||
Total current assets | 12,675 | 5,934 | |||||||
Goodwill and intangible assets | 11,203 | 11,036 | |||||||
Fixed assets, net | 716 | 701 | |||||||
Pension related assets | 1,815 | 1,688 | |||||||
Right of use assets | 1,625 | — | |||||||
Deferred tax assets | 680 | 680 | |||||||
Other assets | 1,423 | 1,539 | |||||||
TOTAL ASSETS | $ | 30,137 | $ | 21,578 | |||||
LIABILITIES AND EQUITY | |||||||||
Current liabilities: | |||||||||
Short-term debt | $ | 1,562 | $ | 314 | |||||
Accounts payable and accrued liabilities | 2,244 | 2,234 | |||||||
Accrued compensation and employee benefits | 892 | 1,778 | |||||||
Acquisition related derivatives | 283 | 441 | |||||||
Current lease liabilities | 291 | — | |||||||
Accrued income taxes | 256 | 157 | |||||||
Dividends payable | 211 | — | |||||||
Total current liabilities | 5,739 | 4,924 | |||||||
Fiduciary liabilities | 5,243 | 5,001 | |||||||
Less - cash and investments held in a fiduciary capacity | (5,243 | ) | (5,001 | ) | |||||
— | — | ||||||||
Long-term debt | 11,472 | 5,510 | |||||||
Pension, post-retirement and post-employment benefits | 1,874 | 1,911 | |||||||
Long-term lease liabilities | 1,590 | — | |||||||
Liabilities for errors and omissions | 282 | 287 | |||||||
Other liabilities | 1,194 | 1,362 | |||||||
Total equity | 7,986 | 7,584 | |||||||
TOTAL LIABILITIES AND EQUITY | $ | 30,137 | $ | 21,578 | |||||
Marsh & McLennan Companies, Inc. | |||||||||
Consolidated Statements of Cash Flows | |||||||||
(Millions) (Unaudited) | |||||||||
Three Months Ended March 31, | |||||||||
2019 | 2018 | ||||||||
Operating cash flows: | |||||||||
Net income before non-controlling interests | $ | 727 | $ | 696 | |||||
Adjustments to reconcile net income to cash used for operations: | |||||||||
Depreciation and amortization of fixed assets and capitalized software | 74 | 80 | |||||||
Amortization of intangible assets | 51 | 45 | |||||||
Amortization of right of use asset | 68 | — | |||||||
Adjustments and payments related to contingent consideration liability | (18 | ) | (5 | ) | |||||
Provision for deferred income taxes | (9 | ) | 11 | ||||||
(Gain) loss on investments | (5 | ) | — | ||||||
(Gain) loss on disposition of assets | — | (1 | ) | ||||||
Share-based compensation expense | 57 | 50 | |||||||
Change in fair value of acquisition-related derivative contracts | (29 | ) | — | ||||||
Changes in assets and liabilities: | |||||||||
Net receivables | (309 | ) | (357 | ) | |||||
Other current assets | (37 | ) | 2 | ||||||
Other assets | (1 | ) | (32 | ) | |||||
Accounts payable and accrued liabilities | 79 | 135 | |||||||
Accrued compensation and employee benefits | (886 | ) | (905 | ) | |||||
Accrued income taxes | 96 | 61 | |||||||
Contributions to pension and other benefit plans in excess of current year expense/credit | (80 | ) | (96 | ) | |||||
Other liabilities | 42 | 17 | |||||||
Operating lease liabilities | (73 | ) | — | ||||||
Effect of exchange rate changes | (23 | ) | (65 | ) | |||||
Net cash used for operations | (276 | ) | (364 | ) | |||||
Financing cash flows: | |||||||||
Purchase of treasury shares | — | (250 | ) | ||||||
Net increase in commercial paper | 748 | 249 | |||||||
Proceeds from issuance of debt | 6,462 | 592 | |||||||
Repayments of debt | (3 | ) | (3 | ) | |||||
Acquisition-related hedging payments | (129 | ) | — | ||||||
Shares withheld for taxes on vested units – treasury shares | (86 | ) | (61 | ) | |||||
Issuance of common stock from treasury shares | 77 | 32 | |||||||
Payments of deferred and contingent consideration for acquisitions | (29 | ) | (70 | ) | |||||
Distributions of non-controlling interests | (4 | ) | (6 | ) | |||||
Dividends paid | (210 | ) | (189 | ) | |||||
Net cash provided by financing activities | 6,826 | 294 | |||||||
Investing cash flows: | |||||||||
Capital expenditures | (73 | ) | (58 | ) | |||||
Sales of long-term investments | 115 | 9 | |||||||
Purchase of equity investment | (88 | ) | — | ||||||
Proceeds from sales of fixed assets | 1 | 1 | |||||||
Dispositions | — | 3 | |||||||
Acquisitions | (140 | ) | (24 | ) | |||||
Other, net | (2 | ) | (1 | ) | |||||
Net cash used for investing activities | (187 | ) | (70 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 47 | 103 | |||||||
Increase (decrease) in cash and cash equivalents and funds held in escrow | 6,410 | (37 | ) | ||||||
Cash and cash equivalents at beginning of period | 1,066 | 1,205 | |||||||
Cash balances, end of period | |||||||||
Cash and cash equivalents at end of period | 1,117 | 1,168 | |||||||
Funds held in escrow for acquisition | 6,359 | — | |||||||
Total | $ | 7,476 | $ | 1,168 | |||||
Supplemental
Historical Adjusted Operating Margins
For the Years Ended
(Millions)
Due to the significant amount of identified intangible asset amortization expected after completion of the JLT Transaction, and the lack of comparability with prior years the Company changed the method for calculating adjusted operating margin to exclude deal amortization. Beginning this quarter, adjusted operating margin will be calculated by dividing the sum of adjusted operating income plus the intangible asset amortization for all acquisitions and dividing that total by applicable consolidated or segment adjusted revenue. The reconciliation of adjusted operating income to operating income reported under generally accepted accounting principles is included in the respective earnings release Forms 8-K furnished to the SEC in 2018 and 2019. The table below shows adjusted operating margin for the full year and each quarter of 2018 and 2017 using the revised methodology. |
2018 | |||||||||||||||||||||
First |
Second |
Third |
Fourth |
Full |
|||||||||||||||||
Risk & Insurance Services | |||||||||||||||||||||
Adjusted Operating Income | $ | 723 | $ | 532 | $ | 283 | $ | 418 | $ | 1,956 | |||||||||||
Amortization Expense | $ | 37 | $ | 35 | $ | 39 | $ | 40 | $ | 151 | |||||||||||
Adjusted Operating Margin | 32.5 | % | 27.0 | % | 17.7 | % | 23.7 | % | 25.7 | % | |||||||||||
Consulting | |||||||||||||||||||||
Adjusted Operating Income | $ | 248 | $ | 267 | $ | 293 | $ | 359 | $ | 1,167 | |||||||||||
Amortization Expense | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 32 | |||||||||||
Adjusted Operating Margin | 15.3 | % | 16.7 | % | 18.2 | % | 20.3 | % | 17.7 | % | |||||||||||
Total Company | |||||||||||||||||||||
Adjusted Operating Income | $ | 918 | $ | 754 | $ | 535 | $ | 731 | $ | 2,938 | |||||||||||
Amortization Expense | $ | 45 | $ | 43 | $ | 47 | $ | 48 | $ | 183 | |||||||||||
Adjusted Operating Margin | 24.1 | % | 21.3 | % | 16.8 | % | 20.9 | % | 20.9 | % | |||||||||||
2017 | |||||||||||||||||||||
First |
Second |
Third |
Fourth |
Full |
|||||||||||||||||
Risk & Insurance Services | |||||||||||||||||||||
Adjusted Operating Income | $ | 555 | $ | 489 | $ | 291 | $ | 423 | $ | 1,758 | |||||||||||
Amortization Expense | $ | 32 | $ | 33 | $ | 35 | $ | 39 | $ | 139 | |||||||||||
Adjusted Operating Margin | 29.5 | % | 27.2 | % | 18.5 | % | 23.5 | % | 24.9 | % | |||||||||||
Consulting | |||||||||||||||||||||
Adjusted Operating Income | $ | 229 | $ | 280 | $ | 312 | $ | 311 | $ | 1,132 | |||||||||||
Amortization Expense | $ | 8 | $ | 7 | $ | 7 | $ | 8 | $ | 30 | |||||||||||
Adjusted Operating Margin | 15.5 | % | 18.0 | % | 20.1 | % | 18.3 | % | 18.0 | % | |||||||||||
Total Company | |||||||||||||||||||||
Adjusted Operating Income | $ | 742 | $ | 725 | $ | 562 | $ | 685 | $ | 2,714 | |||||||||||
Amortization Expense | $ | 40 | $ | 40 | $ | 42 | $ | 47 | $ | 169 | |||||||||||
Adjusted Operating Margin | 22.3 | % | 21.9 | % | 18.1 | % | 19.9 | % | 20.6 | % | |||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190425005469/en/
Source:
Media:
Erick R. Gustafson
Marsh & McLennan Companies
+1
202 263 7788
erick.gustafson@mmc.com
Investor:
Sarah DeWitt
Marsh & McLennan Companies
+1
212 345 6750
sarah.dewitt@mmc.com