REG-Marsh & McLennan Marsh & McLennan Companies Reports Second Quarter 2016 Results <Origin Href="QuoteRef">MMC.N</Origin> - Part 2
28/07/2016 12:05
- Part 2: For the preceding part double click ID:nBw5Y3JC6a
Restructuring charges (a) 3 1 4 8
Adjustments to acquisition related accounts (b) 20 1 — 21
Disposal/deconsolidation of business (c) (12 ) (6 ) — (18 )
Operating income adjustments 11 (4 ) 4 11
Adjusted operating income (loss) $ 1,036 $ 526 $ (92 ) $ 1,470
Operating margin 27.6 % 17.6 % N/A 21.7 %
Adjusted operating margin 28.0 % 17.5 % N/A 22.0 %
Six Months Ended June 30, 2015
Operating income (loss) $ 960 $ 496 $ (92 ) $ 1,364
Add (Deduct) impact of Noteworthy Items:
Restructuring charges (a) 2 — 3 5
Adjustments to acquisition related accounts (b) 29 (5 ) — 24
Other — — (1 ) (1 )
Operating income adjustments 31 (5 ) 2 28
Adjusted operating income (loss) $ 991 $ 491 $ (90 ) $ 1,392
Operating margin 27.0 % 17.1 % N/A 21.2 %
Adjusted operating margin 27.9 % 16.9 % N/A 21.6 %
(a) Primarily severance for center led initiatives, future rent under non-cancellable leases, and integration costs related to recent acquisitions.
(b) Primarily includes the change in fair value as measured each quarter of contingent consideration related to acquisitions.
(c) Reflects the net gain on the deconsolidation of Marsh's India subsidiary and contingent proceeds related to the disposal of Mercer's U.S. defined contribution recordkeeping business. The amounts are removed from GAAP revenue in the calculation of adjusted operating margin.
Marsh & McLennan Companies, Inc.
Non-GAAP Measures
Three and Six Months Ended June 30
(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 tables; divided by MMC's average number of shares outstanding-diluted for the period.
Reconciliation of the Impact of Non-GAAP Measures on diluted earnings per share -
Three Months Ended June 30, 2016 Three Months Ended June 30, 2015
Amount Diluted Amount Diluted
EPS EPS
Income from continuing operations $ 480 $ 429
Less: Non-controlling interest, net of tax 8 10
Subtotal $ 472 $ 0.90 $ 419 $ 0.77
Operating income adjustments $ 8 $ 14
Impact of income taxes — (2 )
8 0.01 12 0.03
Adjusted income, net of tax $ 480 $ 0.91 $ 431 $ 0.80
Six Months Ended June 30, 2016 Six Months Ended June 30, 2015
Amount Diluted Amount Diluted
EPS EPS
Income from continuing operations $ 970 $ 927
Less: Non-controlling interest, net of tax 17 23
Subtotal $ 953 $ 1.81 $ 904 $ 1.66
Operating income adjustments $ 11 $ 28
Impact of income taxes — (7 )
11 0.02 21 0.04
Adjusted income, net of tax $ 964 $ 1.83 $ 925 $ 1.70
Marsh & McLennan Companies, Inc.
Supplemental Information
Three and Six Months Ended June 30
(Millions) (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2016 2015 2016 2015
Consolidated
Compensation and Benefits $ 1,872 $ 1,826 $ 3,726 $ 3,556
Other operating expenses 778 770 1,527 1,520
Total Expenses $ 2,650 $ 2,596 $ 5,253 $ 5,076
Depreciation and amortization expense $ 76 $ 79 $ 154 $ 156
Identified intangible amortization expense 34 24 67 48
Total $ 110 $ 103 $ 221 $ 204
Stock option expense $ 4 $ 5 $ 15 $ 13
Capital expenditures $ 63 $ 85 $ 114 $ 176
Risk and Insurance Services
Compensation and Benefits $ 934 $ 909 $ 1,855 $ 1,771
Other operating expenses 426 414 838 822
Total Expenses $ 1,360 $ 1,323 $ 2,693 $ 2,593
Depreciation and amortization expense $ 34 $ 37 $ 70 $ 72
Identified intangible amortization expense 29 20 57 41
Total $ 63 $ 57 $ 127 $ 113
Consulting
Compensation and Benefits $ 852 $ 831 $ 1,699 $ 1,614
Other operating expenses 402 408 788 798
Total Expenses $ 1,254 $ 1,239 $ 2,487 $ 2,412
Depreciation and amortization expense $ 25 $ 27 $ 50 $ 53
Identified intangible amortization expense 5 4 10 7
Total $ 30 $ 31 $ 60 $ 60
Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions)
(Unaudited) December 31, 2015
June 30,
2016
ASSETS
Current assets:
Cash and cash equivalents $ 974 $ 1,374
Net receivables 3,721 3,471
Other current assets 235 199
Total current assets 4,930 5,044
Goodwill and intangible assets 8,900 8,925
Fixed assets, net 736 773
Pension related assets 1,197 1,159
Deferred tax assets 1,093 1,138
Other assets 1,220 1,177
TOTAL ASSETS $ 18,076 $ 18,216
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 261 $ 12
Accounts payable and accrued liabilities 1,868 1,886
Accrued compensation and employee benefits 1,015 1,656
Accrued income taxes 182 154
Dividends payable 178 —
Total current liabilities 3,504 3,708
Fiduciary liabilities 4,538 4,146
Less - cash and investments held in a fiduciary capacity (4,538 ) (4,146 )
— —
Long-term debt 4,496 4,402
Pension, post-retirement and post-employment benefits 2,004 2,058
Liabilities for errors and omissions 322 318
Other liabilities 1,045 1,128
Total equity 6,705 6,602
TOTAL LIABILITIES AND EQUITY $ 18,076 $ 18,216
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160728005688/en/
Marsh & McLennan
Copyright Business Wire 2016Recent news on Marsh & McLennan Companies
See all newsREG-Marsh McLennan Delisting and Cancellation of Trading From the London Stock Exchange
AnnouncementREG - Official List - Removal - Marsh and McLennan
AnnouncementREG - Stock Exch Notice Marsh & McLennan. - Cancellation - MARSH & MCLENNAN COS. INC
AnnouncementREG-Marsh McLennan Notice of Intention to Delist From the London Stock Exchange
AnnouncementREG-Marsh McLennan Marsh McLennan Reports Third Quarter 2023 Results
Announcement