TIDMMHM
Marsh McLennan (NYSE: MMC), the world's leading professional
services firm in the areas of risk, strategy and people, today
reported financial results for the third quarter ended September
30, 2021.
Dan Glaser, President and CEO, said: "We delivered another
quarter of excellent results. For the second consecutive quarter,
underlying growth was at the highest level in over two decades. We
grew underlying revenue by 13%, adjusted operating income by 19%,
and adjusted EPS by 32%. For the first nine months of 2021, we
achieved 10% underlying revenue growth, 21% adjusted operating
income growth, and 28% adjusted EPS growth."
"Given the outstanding quarter and year-to-date performance, we
are on track for a terrific year."
Consolidated Results
Consolidated revenue in the third quarter of 2021 was $4.6
billion, an increase of 16% compared with the third quarter of
2020. On an underlying basis, revenue increased 13%. Operating
income was $740 million, an increase of 37% from the prior year.
Adjusted operating income, which excludes noteworthy items as
presented in the attached supplemental schedules, rose 19% to $759
million. Net income attributable to the Company was $537 million,
or $1.05 per diluted share, compared with $0.62 in the third
quarter of 2020. Adjusted earnings per share rose 32% to $1.08 per
diluted share compared with $0.82 for the prior year period.
For the nine months ended September 30, 2021, consolidated
revenue was $14.7 billion, an increase of 15%, or 10% on an
underlying basis compared to the prior period. Operating income was
$3.3 billion, an increase of 33% from the prior year period.
Adjusted operating income rose 21% to $3.4 billion. Net income
attributable to the Company was $2.3 billion. Fully diluted
earnings per share was $4.56 compared with $3.21 in the first nine
months of 2020. Adjusted earnings per share increased 28% to $4.82
compared with $3.77 for the comparable period in 2020.
Risk & Insurance Services
Risk & Insurance Services revenue was $2.7 billion in the
third quarter of 2021, an increase of 17%, or 13% on an underlying
basis. Operating income rose 21% to $403 million, and adjusted
operating income was $469 million, an increase of 21% from the
prior year period. For the nine months ended September 30, 2021,
revenue was $9.0 billion, an increase of 16%, or 11% on an
underlying basis. Operating income rose 28% to $2.4 billion, and
adjusted operating income was $2.5 billion, an increase of 20% from
the prior year period.
Marsh's revenue in the third quarter was $2.4 billion, an
increase of 13% on an underlying basis. In U.S./Canada, underlying
revenue rose 16%. International operations produced underlying
revenue growth of 9%, reflecting 12% growth in Latin America, 9%
growth in Asia Pacific, and 8% growth in EMEA. For the nine months
ended September 30, 2021, Marsh's underlying revenue growth was 12%
compared to the prior period a year ago.
Guy Carpenter's revenue in the third quarter was $314 million,
an increase of 15% on an underlying basis. For the nine months
ended September 30, 2021, Guy Carpenter's underlying revenue growth
was 10%.
Consulting
Consulting revenue in the third quarter was $1.9 billion, an
increase of 13% or 12% on an underlying basis compared to the same
period a year ago. Operating income increased 45% to $404 million,
and adjusted operating income increased 15% to $350 million. For
the first nine months of 2021, revenue was $5.7 billion, an
increase of 12%, or an increase of 9% on an underlying basis.
Operating income of $1.1 billion increased 36% and adjusted
operating income increased 25% to $1.1 billion.
Mercer's revenue was $1.3 billion in the third quarter, an
increase of 7% on an underlying basis. Career revenue of $253
million was up 13% on an underlying basis. Wealth revenue of $613
million increased 6% on an underlying basis, and Health revenue of
$449 million increased 4% on an underlying basis. For the nine
months ended September 30, 2021, Mercer's revenue was $3.9 billion,
an increase of 4% on an underlying basis compared to the same
period a year ago.
Oliver Wyman's revenue was $610 million in the third quarter, an
increase of 25% on an underlying basis. For the first nine months
ended September 30, 2021, Oliver Wyman's revenue was $1.8 billion,
an increase of 21% on an underlying basis.
Other Items
The Company repurchased 1.9 million shares of stock for $300
million in the third quarter. Through nine months, the Company has
repurchased 5.3 million shares for $734 million.
Conference Call
A conference call to discuss third quarter 2021 results will be
held today at 8:30 a.m. Eastern time. To participate in the
teleconference, please dial +1 866 437 7574. Callers from outside
the United States should dial +1 409 220 9376. The access code for
both numbers is 4336169. The live audio webcast may be accessed at
marshmclennan.com. A replay of the webcast will be available
approximately two hours after the event.
About Marsh McLennan
Marsh McLennan (NYSE: MMC) is the world's leading professional
services firm in the areas of risk, strategy and people. The
Company's 81,000 colleagues advise clients in 130 countries. With
annual revenue over $19 billion, Marsh McLennan helps clients
navigate an increasingly dynamic and complex environment through
four market-leading businesses. Marsh provides data-driven risk
advisory services and insurance solutions to commercial and
consumer clients. Guy Carpenter develops advanced risk, reinsurance
and capital strategies that help clients grow profitably and pursue
emerging opportunities. Mercer delivers advice and
technology-driven solutions that help organizations redefine the
world of work, reshape retirement and investment outcomes, and
unlock health and well being for a changing workforce. Oliver Wyman
serves as a critical strategic, economic and brand advisor to
private sector and governmental clients. For more information,
visit marshmclennan.com, follow us on LinkedIn and Twitter or
subscribe to BRINK.
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:
-- the increasing prevalence of ransomware, supply chain and other forms of
cyber attacks, and their potential to disrupt our operations and result
in the disclosure of confidential client or company information;
-- the impact from lawsuits or investigations arising from errors and
omissions, breaches of fiduciary duty or other claims against us in our
capacity as a broker or investment advisor;
-- increased regulatory activity and scrutiny by regulatory or law
enforcement authorities;
-- the financial and operational impact of complying with laws and
regulations where we operate and the risks of noncompliance with such
laws by us or third-party providers, including anti-corruption laws such
as the U.S. Foreign Corrupt Practices Act, U.K. Anti-Bribery Act and
cybersecurity and data privacy regulations such as the E.U.'s General
Data Protection Regulation;
-- the impact of COVID-19, including emerging vaccine mandates, on our
business operations, results of operations, cash flows and financial
position;
-- 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;
-- our ability to manage risks associated with our investment management and
related services business, particularly in the context of uncertain
equity markets, including our ability to execute timely trades in light
of increased trading volume and to manage potential conflicts of
interest;
-- our ability to attract and retain industry leading talent;
-- the impact of changes in tax laws, guidance and interpretations, or
disagreements with tax authorities; and
-- the regulatory, contractual and reputational risks that arise based on
insurance placement activities and insurer revenue streams.
The factors identified above are not exhaustive. Marsh McLennan
and its subsidiaries operate in a dynamic business environment in
which new risks emerge frequently. Accordingly, we caution readers
not to place undue reliance on any forward-looking statements,
which are based only on information currently available to us and
speak only as of the dates on which they are made. The Company
undertakes no obligation to update or revise any forward-looking
statement to reflect events or circumstances arising after the date
on which it is made.
Further information concerning Marsh McLennan and its
businesses, including information about factors that could
materially affect our results of operations and financial
condition, is contained in the Company's filings with the
Securities and Exchange Commission, including the "Risk Factors"
section and the "Management's Discussion and Analysis of Financial
Condition and Results of Operations" section of our most recently
filed Annual Report on Form 10-K.
Marsh & McLennan Companies, Inc.
Consolidated Statements of Income
(In millions, except per share data)
(Unaudited)
Three Months
Ended September Nine Months Ended
30, September 30,
2021 2020 2021 2020
Revenue $4,583 $3,968 $14,683 $12,808
Expense:
Compensation and
benefits 2,853 2,495 8,520 7,479
Other operating
expenses 990 933 2,837 2,834
Operating
expenses 3,843 3,428 11,357 10,313
Operating income 740 540 3,326 2,495
Other net benefit
credits 69 60 211 187
Interest income 1 1 2 5
Interest expense (107 ) (128 ) (335 ) (387 )
Investment income
(loss) 13 (14 ) 43 (47 )
Income before
income taxes 716 459 3,247 2,253
Income tax
expense 174 139 880 586
Net income before
non-controlling
interests 542 320 2,367 1,667
Less: Net income
attributable to
non-controlling
interests 5 4 27 25
Net income
attributable to
the Company $537 $316 $2,340 $1,642
Net income per
share
attributable to
the Company:
- Basic $1.06 $0.62 $4.61 $3.25
- Diluted $1.05 $0.62 $4.56 $3.21
Average number
of shares
outstanding
- Basic 506 507 508 506
- Diluted 513 512 513 511
Shares
outstanding at
September 30 505 507 505 507
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Three Months Ended September 30
(Millions) (Unaudited)
The Company conducts business in 130 countries. As a result,
foreign exchange rate movements may impact period-to-period
comparisons of revenue. Similarly, certain other items such as
acquisitions and dispositions, including transfers among
businesses, may impact period-to-period comparisons of revenue.
Underlying revenue measures the change in revenue from one period
to the next by isolating these impacts.
Components of Revenue Change*
Three Months % Change Acquisitions/
Ended September GAAP Currency Dispositions/ Underlying
30, Revenue Impact Other Impact Revenue
2021 2020
Risk and
Insurance
Services
Marsh $2,352 $2,009 17 % 2 % 3 % 13 %
Guy Carpenter 314 274 15 % -- -- 15 %
Subtotal 2,666 2,283 17 % 1 % 2 % 13 %
Fiduciary
interest
income 4 8
Total Risk and
Insurance
Services 2,670 2,291 17 % 1 % 2 % 13 %
Consulting
Mercer 1,315 1,216 8 % 2 % (1 )% 7 %
Oliver Wyman
Group 610 480 27 % 1 % -- 25 %
Total
Consulting 1,925 1,696 13 % 2 % -- 12 %
Corporate
Eliminations (12 ) (19 )
Total Revenue $4,583 $3,968 16 % 2 % 1 % 13 %
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
Components of Revenue Change*
Three Months % Change Acquisitions/
Ended GAAP Currency Dispositions/ Underlying
September 30, Revenue Impact Other Impact Revenue
2021 2020
Marsh:
EMEA $600 $536 12% 4 % -- 8 %
Asia Pacific 281 254 10% 2 % -- 9 %
Latin America 105 93 13% 1 % -- 12 %
Total
International 986 883 12% 3 % -- 9 %
U.S./Canada 1,366 1,126 21% -- 4 % 16 %
Total Marsh $2,352 $2,009 17% 2 % 3 % 13 %
Mercer:
Wealth $613 $566 9 % 3 % (1) % 6 %
Health 449 430 4 % 1 % (1) % 4 %
Career 253 220 15% 1 % -- 13 %
Total Mercer $1,315 $1,216 8 % 2 % (1) % 7 %
* Components of revenue change may not add due to rounding.
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Nine Months Ended September 30
(Millions) (Unaudited)
The Company conducts business in 130 countries. As a result,
foreign exchange rate movements may impact period-to-period
comparisons of revenue. Similarly, certain other items such as
acquisitions and dispositions, including transfers among
businesses, may impact period-to-period comparisons of revenue.
Underlying revenue measures the change in revenue from one period
to the next by isolating these impacts.
Components of Revenue Change*
% Change Acquisitions/
Nine Months Ended GAAP Currency Dispositions/ Underlying
September 30, Revenue Impact Other Impact Revenue
2021 2020
Risk and
Insurance
Services
Marsh $7,327 $6,231 18% 3% 3 % 12 %
Guy Carpenter 1,697 1,534 11% 1% -- 10 %
Subtotal 9,024 7,765 16% 3% 2 % 11 %
Fiduciary
interest
income 12 40
Total Risk and
Insurance
Services 9,036 7,805 16% 3% 2 % 11 %
Consulting
Mercer 3,877 3,616 7 % 4% (1 )% 4 %
Oliver Wyman
Group 1,813 1,458 24% 3% -- 21 %
Total
Consulting 5,690 5,074 12% 4% (1 )% 9 %
Corporate
Eliminations (43 ) (71 )
Total Revenue $14,683 $12,808 15% 3% 1 % 10 %
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
Components of Revenue Change*
Nine Months % Change Acquisitions/
Ended GAAP Currency Dispositions/ Underlying
September 30, Revenue Impact Other Impact Revenue
2021 2020
Marsh:
EMEA $2,233 $1,887 18 % 6 % 2 % 10 %
Asia Pacific 902 790 14 % 6 % -- 9 %
Latin America 298 283 5 % (1)% -- 6 %
Total
International 3,433 2,960 16 % 5 % 1 % 9 %
U.S./Canada 3,894 3,271 19 % 1 % 5 % 14 %
Total Marsh $7,327 $6,231 18 % 3 % 3 % 12 %
Mercer:
Wealth $1,861 $1,719 8 % 6 % (1) % 4 %
Health 1,398 1,348 4 % 2 % (1) % 3 %
Career 618 549 13 % 3 % -- 10 %
Total Mercer $3,877 $3,616 7 % 4 % (1) % 4 %
* Components of revenue change may not add due to rounding.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Three Months Ended September 30
(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 in accordance with "GAAP" or "reported" results). The Company also
refers to and presents 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 its 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 (loss). The
following tables identify these noteworthy items and reconcile adjusted
operating income (loss) to GAAP operating income (loss), on a consolidated and
reportable segment basis, for the three and nine months ended September 30,
2021 and 2020. The following tables also present adjusted operating margin.
For the three and nine months ended September 30, 2021 and 2020, adjusted
operating margin is calculated by dividing the sum of adjusted operating
income and identified intangible asset amortization by consolidated or segment
adjusted revenue.
Risk &
Insurance Corporate/
Services Consulting Eliminations Total
Three Months Ended
September 30, 2021
Operating income
(loss) $403 $ 404 $ (67 ) $740
Operating margin 15.1% 21.0 % N/A 16.1 %
Add (deduct) impact
of noteworthy
items:
Restructuring,
excluding JLT (a) 7 -- 5 12
Changes in contingent
consideration (b) 17 1 -- 18
JLT integration and
restructuring costs
(c) 11 9 (1 ) 19
JLT
acquisition-related
costs (d) 10 -- 1 11
JLT legacy E&O
provision (e) -- (63 ) -- (63 )
Legal claims and
other (f) 21 (1 ) 2 22
Operating income
adjustments 66 (54 ) 7 19
Adjusted operating
income (loss) $469 $ 350 $ (60 ) $759
Total identified
intangible
amortization
expense $75 $ 14 $ -- $89
Adjusted operating
margin 20.4% 18.9 % N/A 18.5 %
Three Months Ended
September 30, 2020
Operating income
(loss) $333 $ 278 $ (71 ) $540
Operating margin 14.5% 16.4 % N/A 13.6 %
Add (deduct) impact
of noteworthy
items:
Restructuring,
excluding JLT (a) -- 11 12 23
Changes in contingent
consideration (b) 15 1 -- 16
JLT integration and
restructuring costs
(c) 25 14 5 44
JLT
acquisition-related
costs (d) 15 1 (1 ) 15
Other -- 1 (1 ) --
Operating income
adjustments 55 28 15 98
Adjusted operating
income (loss) $388 $ 306 $ (56 ) $638
Total identified
intangible
amortization
expense $75 $ 16 $ -- $91
Adjusted operating
margin 20.2% 18.9 % N/A 18.4 %
(a) Primarily includes restructuring expenses associated with the Company's
global information technology and HR functions and adjustments to
restructuring liabilities for future rent under non-cancellable leases.
(b) Primarily includes the change in fair value of contingent consideration
related to acquisitions and dispositions measured each quarter.
(c) Includes costs incurred for staff reductions, lease related exit costs,
technology and consulting costs related to the Jardine Lloyd Thompson ("JLT")
integration.
(d) Reflects retention costs related to the closing of the acquisition of JLT.
(e) Reflects a reduction in the liability for a legacy JLT E&O relating to
suitability of advice provided to individuals for defined benefit pension
transfers in the U.K., as well as recoveries under indemnities and insurance.
(f) Primarily reflects settlement charges and legal costs related to strategic
recruiting.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Nine Months Ended September 30
(Millions) (Unaudited)
Risk &
Insurance Corporate/
Services Consulting Eliminations Total
Nine Months Ended
September 30, 2021
Operating income
(loss) $2,413 $ 1,109 $ (196) $3,326
Operating margin 26.7 % 19.5 % N/A 22.7 %
Add (deduct) impact
of noteworthy
items:
Restructuring,
excluding JLT (a) 12 8 15 35
Changes in contingent
consideration (b) 18 (4) (3) 11
JLT integration and
restructuring costs
(c) 38 21 2 61
JLT
acquisition-related
costs (d) 32 2 1 35
JLT legacy E&O
provision (e) -- (63) -- (63)
Legal claims and
other (f) 27 -- 2 29
Disposal of
businesses (g) (52) 3 -- (49)
Operating income
adjustments 75 (33) 17 59
Adjusted operating
income (loss) $2,488 $ 1,076 $ (179) $3,385
Total identified
intangible
amortization
expense $236 $ 42 $ -- $278
Adjusted operating
margin 30.3 % 19.6 % N/A 25.0 %
Nine Months Ended
September 30, 2020
Operating income
(loss) $1,883 $ 815 $ (203) $2,495
Operating margin 24.1 % 16.1 % N/A 19.5 %
Add (deduct) impact
of noteworthy
items:
Restructuring,
excluding JLT (a) 2 17 24 43
Changes in contingent
consideration (b) 22 (2) 2 22
JLT integration and
restructuring costs
(c) 125 31 25 181
JLT
acquisition-related
costs (d) 39 2 -- 41
Disposal of business
(g) 6 (4) -- 2
Other 5 1 (1) 5
Operating income
adjustments 199 45 50 294
Adjusted operating
income (loss) $2,082 $ 860 $ (153) $2,789
Total identified
intangible
amortization
expense $222 $ 43 $ -- $265
Adjusted operating
margin 29.5 % 17.8 % N/A 23.8 %
(a) Primarily includes restructuring expenses associated with the Company's
global information technology and HR functions and adjustments to
restructuring liabilities for future rent under non-cancellable leases.
Consulting charges in 2020 reflect severance and real estate exit costs
related to the Mercer restructuring program completed in 2020.
(b) Primarily includes the change in fair value of contingent consideration
related to acquisitions and dispositions as measured each quarter.
(c) Includes costs incurred for staff reductions, lease related exit costs,
technology and consulting costs related to the JLT integration.
(d) Reflects retention costs related to the closing of the acquisition of JLT.
(e) Reflects a reduction in the liability for a legacy JLT E&O relating to
suitability of advice provided to individuals for defined benefit pension
transfers in the U.K., as well as recoveries under indemnities and insurance.
(f) Primarily reflects settlement charges and legal costs related to strategic
recruiting.
(g) Primarily reflects a gain on the sale of the U.K. commercial networks
business that provided broking and back-office solutions for small independent
brokers during the second quarter of 2021. 2020 reflects net loss on disposal
of specialty businesses sold in the U.S., U.K. and Canada, previously acquired
as part of the JLT Transaction. These amounts are reflected as an increase or
decrease of other revenue, which is reflected as part of revenue in the
consolidated statements of income. These items are removed from GAAP revenue
in the calculation of adjusted operating margin.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Three and Nine Months Ended September 30
(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 in the preceding tables and the additional items
listed below. Adjusted EPS is calculated by dividing the Company's adjusted
income, net of tax, by 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 and nine month periods ended September 30, 2021 and 2020.
Three Months Ended Three Months Ended
September 30, 2021 September 30, 2020
Adjusted Adjusted
Amount EPS Amount EPS
Net income
before
non-controlling
interests, as
reported $542 $320
Less:
Non-controlling
interest, net
of tax 5 4
Subtotal $537 $ 1.05 $316 $ 0.62
Operating income
adjustments $19 $98
Investments
adjustment (a) (1 ) 16
Pension
settlement
adjustment 2 --
Income tax
effect of
adjustments
(b) (10) (12 )
Impact of U.K.
tax rate change
(c) 5 --
15 0.03 102 0.20
Adjusted income,
net of tax $552 $ 1.08 $418 $ 0.82
Nine Months Ended Nine Months Ended September
September 30, 2021 30, 2020
Adjusted Adjusted
Amount EPS Amount EPS
Net income
before
non-controlling
interests, as
reported $2,367 $1,667
Less:
Non-controlling
interest, net
of tax 27 25
Subtotal $2,340 $ 4.56 $1,642 $ 3.21
Operating income
adjustments $59 $294
Investments
adjustment (a) (2 ) 42
Pension
settlement
adjustment 2 --
Income tax
effect of
adjustments
(b) (31) (50 )
Impact of U.K.
tax rate change
(c) 105 --
133 0.26 286 0.56
Adjusted income,
net of tax $2,473 $ 4.82 $1,928 $ 3.77
(a) Represents mark-to-market gains in 2021 and losses in 2020, primarily
related to the Company's investment in Alexander Forbes ("AF").
(b) For items with an income tax impact, the tax effect was calculated using
an effective tax rate based on the tax jurisdiction for each item.
(c) Reflects the re-measurement of the Company's U.K. deferred tax assets and
liabilities upon enactment of legislation that increased the corporate income
tax rate applicable to U.K. based entities from 19% to 25%, effective April 1,
2023.
Marsh & McLennan Companies, Inc.
Supplemental Information
Three and Nine Months Ended September 30
(Millions) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Consolidated
Compensation
and benefits $ 2,853 $2,495 $ 8,520 $7,479
Other
operating
expenses 990 933 2,837 2,834
Total expenses $ 3,843 $3,428 $ 11,357 $10,313
Depreciation
and
amortization
expense $ 90 $94 $ 291 $282
Identified
intangible
amortization
expense 89 91 278 265
Total $ 179 $185 $ 569 $547
Stock option
expense $ 4 $4 $ 29 $25
Risk and
Insurance
Services
Compensation
and benefits $ 1,634 $1,400 $ 4,876 $4,234
Other
operating
expenses 633 558 1,747 1,688
Total expenses $ 2,267 $1,958 $ 6,623 $5,922
Depreciation
and
amortization
expense $ 44 $49 $ 152 $146
Identified
intangible
amortization
expense 75 75 236 222
Total $ 119 $124 $ 388 $368
Consulting
Compensation
and benefits $ 1,103 $980 $ 3,287 $2,911
Other
operating
expenses 418 438 1,294 1,348
Total expenses $ 1,521 $1,418 $ 4,581 $4,259
Depreciation
and
amortization
expense $ 29 $29 $ 87 $86
Identified
intangible
amortization
expense 14 16 42 43
Total $ 43 $45 $ 129 $129
Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions)
(Unaudited)
September 30,
2021 December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents $ 1,398 $ 2,089
Net receivables 5,624 5,326
Other current assets 855 740
Total current assets 7,877 8,155
Goodwill and intangible
assets 18,235 18,216
Fixed assets, net 824 856
Pension related assets 1,935 1,768
Right of use assets 1,899 1,894
Deferred tax assets 692 702
Other assets 1,520 1,458
TOTAL ASSETS $ 32,982 $ 33,049
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 516 $ 517
Accounts payable and
accrued liabilities 2,833 3,050
Accrued compensation and
employee benefits 2,365 2,400
Current lease liabilities 339 342
Accrued income taxes 333 247
Dividends payable 273 --
Total current liabilities 6,659 6,556
Fiduciary liabilities 10,408 8,585
Less - cash and
investments held in a
fiduciary capacity (10,408 ) (8,585 )
-- --
Long-term debt 10,228 10,796
Pension, post-retirement
and post-employment
benefits 2,387 2,662
Long-term lease
liabilities 1,900 1,924
Liabilities for errors and
omissions 356 366
Other liabilities 1,564 1,485
Total equity 9,888 9,260
TOTAL LIABILITIES AND
EQUITY $ 32,982 $ 33,049
Marsh & McLennan Companies, Inc.
Consolidated Statements of Cash Flows
(Millions) (Unaudited)
Nine Months Ended
September 30,
2021 2020
Operating cash flows:
Net income before non-controlling
interests $ 2,367 $1,667
Adjustments to reconcile net income to
cash used for operations:
Depreciation and amortization 569 547
Non cash lease expense 241 241
Share-based compensation expense 263 219
Net (gain) loss on investments,
disposition of assets and other (89 ) 48
Changes in Assets and Liabilities:
Accrued compensation and employee benefits (53 ) (431 )
Net receivables (336 ) 77
Other changes to assets and liabilities (299 ) 135
Contributions to pension and other benefit
plans in excess of current year credit (282 ) (240 )
Operating lease liabilities (262 ) (254 )
Effect of exchange rate changes (45 ) (10 )
Net cash provided by operations 2,074 1,999
Financing cash flows:
Purchase of treasury shares (734 ) --
Borrowings from term-loan and credit
facilities -- 1,000
Proceeds from issuance of debt -- 737
Repayments of debt (512 ) (1,011 )
Net issuance of common stock from treasury
shares 16 (33 )
Net distributions of non-controlling
interests and deferred/contingent
consideration (66 ) (154 )
Dividends paid (750 ) (702 )
Net cash used for financing activities (2,046 ) (163 )
Investing cash flows:
Capital expenditures (268 ) (278 )
Net (purchase) sale of long-term
investments and other (4 ) 98
Dispositions 84 93
Acquisitions (401 ) (559 )
Net cash used for investing activities (589 ) (646 )
Effect of exchange rate changes on cash
and cash equivalents (130 ) 43
(Decrease) increase in cash and cash
equivalents (691 ) 1,233
Cash and cash equivalents at beginning of
period 2,089 1,155
Cash and cash equivalents at end of period $ 1,398 $2,388
Media Contact:
Erick R. Gustafson
Marsh McLennan
+1 202 263 7788
erick.gustafson@mmc.com
Investor Contact:
Sarah DeWitt
Marsh McLennan
+1 212 345 6750
sarah.dewitt@mmc.com
View source version on businesswire.com:
https://www.businesswire.com/news/home/20211021005542/en/
CONTACT:
Marsh & McLennan
SOURCE: Marsh & McLennan
Copyright Business Wire 2021
(END) Dow Jones Newswires
October 21, 2021 07:00 ET (11:00 GMT)
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