REG-Marsh & McLennan Marsh & McLennan Companies Reports Second Quarter 2017 Results <Origin Href="QuoteRef">MMC.N</Origin> - Part 2

Marsh & McLennan CompaniesAnnouncement

27/07/2017 12:05

- Part 2: For the preceding part double click  ID:nBw7MSdH3a 

of tax                              6                                                                     8                                      
 Subtotal                                                                $   501              $      0.96                                      $   472              $        0.90     
 Operating income adjustments                        $   24                                                                $   8                                                      
 Impact of income taxes                              (7      )                                                             —                                                          
                                                                         17                   0.04                                             8                    0.01              
 Adjusted income, net of tax                                             $   518              $      1.00                                      $   480              $        0.91     
                                                                                                                                                                                      

                                                                                                                                                                                        
                                                     Six Months Ended                                                        Six Months Ended                                           
                                                     June 30, 2017                                                           
                                                          
                                                                                                                             June 30, 2016                                              
                                                     Amount                                     Adjusted EPS                 Amount                                   Adjusted EPS      
 Income from continuing operations                                       $   1,085                                                               $   970                                
 Less: Non-controlling interest, net of tax                              15                                                                      17                                     
 Subtotal                                                                $   1,070              $      2.05                                      $   953              $        1.81     
 Operating income adjustments                        $   17                                                                  $   11                                                     
 Impact of income taxes                              (6      )                                                               —                                                          
                                                                         11                     0.03                                             11                   0.02              
 Adjusted income, net of tax                                             $   1,081              $      2.08                                      $   964              $        1.83     
                                                                                                                                                                                        

                                                                                                                                                
 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,                               
                                                     2017                       2016                     2017                       2016        
 Consolidated                                                                                                                                   
 Compensation and Benefits                           $    1,935                 $    1,872               $    3,880                 $    3,726  
 Other operating expenses                            796                        778                      1,545                      1,527       
 Total Expenses                                      $    2,731                 $    2,650               $    5,425                 $    5,253  
                                                                                                                                                
 Depreciation and amortization expense               $    76                    $    76                  $    156                   $    154    
 Identified intangible amortization expense          40                         34                       80                         67          
 Total                                               $    116                   $    110                 $    236                   $    221    
                                                                                                                                                
 Stock option expense                                $    3                     $    4                   $    17                    $    15     
 Capital expenditures                                $    82                    $    63                  $    144                   $    114    
                                                                                                                                                
 Risk and Insurance Services                                                                                                                    
 Compensation and Benefits                           $    968                   $    934                 $    1,948                 $    1,855  
 Other operating expenses                            420                        426                      816                        838         
 Total Expenses                                      $    1,388                 $    1,360               $    2,764                 $    2,693  
                                                                                                                                                
 Depreciation and amortization expense               $    35                    $    34                  $    70                    $    70     
 Identified intangible amortization expense          33                         29                       65                         57          
 Total                                               $    68                    $    63                  $    135                   $    127    
                                                                                                                                                
 Consulting                                                                                                                                     
 Compensation and Benefits                           $    883                   $    852                 $    1,758                 $    1,699  
 Other operating expenses                            426                        402                      836                        788         
 Total Expenses                                      $    1,309                 $    1,254               $    2,594                 $    2,487  
                                                                                                                                                
 Depreciation and amortization expense               $    24                    $    25                  $    51                    $    50     
 Identified intangible amortization expense          7                          5                        15                         10          
 Total                                               $    31                    $    30                  $    66                    $    60     
                                                                                                                                                

                                                                                                                       
 Marsh & McLennan Companies, Inc.                                                                                      
 
                                                                                                                     
 Consolidated Balance Sheets                                                                                           
 
                                                                                                                     
 (Millions)                                                                                                            
                                                                                                                       
                                                                   (Unaudited)                 December 31, 2016       
                                                                   June 30,                                            
                                                                   2017                                                
 ASSETS                                                                                                                
                                                                                                                       
 Current assets:                                                                                                       
 Cash and cash equivalents                                         $     966                   $       1,026           
 Net receivables                                                   3,984                       3,643                   
 Other current assets                                              232                         215                     
 Total current assets                                              5,182                       4,884                   
                                                                                                                       
 Goodwill and intangible assets                                    10,054                      9,495                   
 Fixed assets, net                                                 721                         725                     
 Pension related assets                                            981                         776                     
 Deferred tax assets                                               975                         1,097                   
 Other assets                                                      1,529                       1,213                   
 TOTAL ASSETS                                                      $     19,442                $       18,190          
                                                                                                                       
 LIABILITIES AND EQUITY                                                                                                
                                                                                                                       
 Current liabilities:                                                                                                  
 Short-term debt                                                   $     162                   $       312             
 Accounts payable and accrued liabilities                          2,027                       1,969                   
 Accrued compensation and employee benefits                        1,073                       1,655                   
 Accrued income taxes                                              193                         146                     
 Dividends payable                                                 194                         —                       
 Total current liabilities                                         3,649                       4,082                   
                                                                                                                       
 Fiduciary liabilities                                             5,039                       4,241                   
 Less - cash and investments held in a fiduciary capacity          (5,039        )             (4,241          )       
                                                                   —                           —                       
 Long-term debt                                                    5,479                       4,495                   
 Pension, post-retirement and post-employment benefits             1,986                       2,076                   
 Liabilities for errors and omissions                              305                         308                     
 Other liabilities                                                 949                         957                     
                                                                                                                       
 Total equity                                                      7,074                       6,272                   
 TOTAL LIABILITIES AND EQUITY                                      $     19,442                $       18,190          



 Media:                                                  
 Marsh & McLennan Companies                              
 Laura Schooler, +1 212-345-0370                         
 laura.schooler@mmc.com (mailto:laura.schooler@mmc.com)  
 or                                                      
 Investors:                                              
 Marsh & McLennan Companies                              
 Dan Farrell, +1 212-345-3713                            
 daniel.farrell@mmc.com (mailto:daniel.farrell@mmc.com)  






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