REG-Marsh & McLennan Marsh & McLennan Companies Reports Third Quarter 2016 Results <Origin Href="QuoteRef">MMC.N</Origin> - Part 2

Marsh & McLennan CompaniesAnnouncement

25/10/2016 12:05

- Part 2: For the preceding part double click  ID:nBwbpS29Ca 

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 and nine months ended September 30, 2016 and 2015.                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

                                                                                                                                                                                                                                              
                                                   Three Months Ended                                                                        Three Months Ended                                                                               
                                                    September 30, 2016                                                                        September 30, 2015                                                                              
                                                   Amount                                                          Adjusted                  Amount                                                                  Adjusted                 
                                                                                                                   EPS                                                                                               EPS                      
 Income from continuing operations                                              $           384                                                                                 $              329                                            
 Less: Non-controlling interest, net of tax                                     5                                                                                               8                                                             
 Subtotal                                                                       $           379                    $           0.73                                             $              321                   $              0.60      
 Operating income adjustments                      $           (10  )                                                                        $              25                                                                                
 Impact of income taxes                            (7               )                                                                        (8                  )                                                                            
                                                                                (17                )               (0.04             )                                          17                                   0.03                     
 Adjusted income, net of tax                                                    $           362                    $           0.69                                             $              338                   $              0.63      
                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                              
                                                   Nine Months Ended September 30, 2016                                                      Nine Months Ended September 30, 2015                                                             
                                                   Amount                                                          Adjusted                  Amount                                                                  Adjusted                 
                                                                                                                   EPS                                                                                               EPS                      
 Income from continuing operations                                              $           1,354                                                                               $              1,256                                          
 Less: Non-controlling interest, net of tax                                     22                                                                                              31                                                            
 Subtotal                                                                       $           1,332                  $           2.54                                             $              1,225                 $              2.27      
 Operating income adjustments                      $           1                                                                             $              53                                                                                
 Impact of income taxes                            (7               )                                                                        (15                 )                                                                            
                                                                                (6                 )               (0.01             )                                          38                                   0.07                     
 Adjusted income, net of tax                                                    $           1,326                  $           2.53                                             $              1,263                 $              2.34      
                                                                                                                                                                                                                                              

                                                                                                                                                                           
 Marsh & McLennan Companies, Inc.                                                                                                                                          
  Supplemental Information                                                                                                                                                 
  Three and Nine Months Ended September 30                                                                                                                                 
  (Millions) (Unaudited)                                                                                                                                                   
                                                                                                                                                                           
                                                   Three Months Ended September 30,                              Nine Months Ended September 30,                           
                                                                                  
                                                   2016                                 2015                     2016                                 2015                 
 Consolidated                                                                                                                                                              
 Compensation and Benefits                         $           1,817                    $           1,878        $           5,543                    $           5,434    
 Other operating expenses                          746                                  776                      2,273                                2,296                
 Total Expenses                                    $           2,563                    $           2,654        $           7,816                    $           7,730    
                                                                                                                                                                           
 Depreciation and amortization expense             $           77                       $           77           $           231                      $           233      
 Identified intangible amortization expense        32                                   31                       99                                   79                   
 Total                                             $           109                      $           108          $           330                      $           312      
                                                                                                                                                                           
 Stock option expense                              $           3                        $           5            $           18                       $           18       
 Capital expenditures                              $           60                       $           73           $           174                      $           249      
                                                                                                                                                                           
 Risk and Insurance Services                                                                                                                                               
 Compensation and Benefits                         $           924                      $           926          $           2,779                    $           2,697    
 Other operating expenses                          393                                  433                      1,231                                1,255                
 Total Expenses                                    $           1,317                    $           1,359        $           4,010                    $           3,952    
                                                                                                                                                                           
 Depreciation and amortization expense             $           35                       $           35           $           105                      $           107      
 Identified intangible amortization expense        26                                   28                       83                                   69                   
 Total                                             $           61                       $           63           $           188                      $           176      
                                                                                                                                                                           
 Consulting                                                                                                                                                                
 Compensation and Benefits                         $           807                      $           861          $           2,506                    $           2,475    
 Other operating expenses                          398                                  394                      1,186                                1,192                
 Total Expenses                                    $           1,205                    $           1,255        $           3,692                    $           3,667    
                                                                                                                                                                           
 Depreciation and amortization expense             $           25                       $           27           $           75                       $           80       
 Identified intangible amortization expense        6                                    3                        16                                   10                   
 Total                                             $           31                       $           30           $           91                       $           90       
                                                                                                                                                                           

                                                                                                                            
 Marsh & McLennan Companies, Inc.                                                                                           
  Consolidated Balance Sheets                                                                                               
  (Millions)                                                                                                                
                                                                                                                            
                                                                 (Unaudited)                      December 31,              
                                                                  September 30,                    2015                     
                                                                  2016                                                      
 ASSETS                                                                                                                     
                                                                                                                            
 Current assets:                                                                                                            
 Cash and cash equivalents                                       $             1,388              $           1,374         
 Net receivables                                                 3,603                            3,471                     
 Other current assets                                            218                              199                       
 Total current assets                                            5,209                            5,044                     
                                                                                                                            
 Goodwill and intangible assets                                  8,882                            8,925                     
 Fixed assets, net                                               717                              773                       
 Pension related assets                                          1,253                            1,159                     
 Deferred tax assets                                             1,085                            1,138                     
 Other assets                                                    1,212                            1,177                     
 TOTAL ASSETS                                                    $             18,358             $           18,216        
                                                                                                                            
 LIABILITIES AND EQUITY                                                                                                     
                                                                                                                            
 Current liabilities:                                                                                                       
 Short-term debt                                                 $             262                $           12            
 Accounts payable and accrued liabilities                        1,862                            1,886                     
 Accrued compensation and employee benefits                      1,310                            1,656                     
 Accrued income taxes                                            213                              154                       
 Dividends payable                                               178                              —                         
 Total current liabilities                                       3,825                            3,708                     
                                                                                                                            
 Fiduciary liabilities                                           4,532                            4,146                     
 Less - cash and investments held in a fiduciary capacity        (4,532                )          (4,146              )     
                                                                 —                                —                         
 Long-term debt                                                  4,494                            4,402                     
 Pension, post-retirement and post-employment benefits           1,969                            2,058                     
 Liabilities for errors and omissions                            317                              318                       
 Other liabilities                                               999                              1,128                     
                                                                                                                            
 Total equity                                                    6,754                            6,602                     
 TOTAL LIABILITIES AND EQUITY                                    $             18,358             $           18,216        
                                                                                                                            

 Media:                           
 Marsh & McLennan Companies       
 Laura Schooler, +1-212-345-0370  
 laura.schooler@mmc.com           
 or                               
 Investors:                       
 Marsh & McLennan Companies       
 Keith Walsh, +1-212-345-0057     
 keith.walsh@mmc.com              




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