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 second quarter ended June 30,
2021.
Dan Glaser, President and CEO, said: "Our performance this
quarter was outstanding. The company achieved the strongest
underlying growth in two decades, and experienced an acceleration
in growth across all of our businesses. We grew underlying revenue
by 13%, adjusted operating income by 24%, and adjusted EPS by
33%.
"These results are a direct reflection of the hard work and
dedication of our colleagues around the world. We look forward to
carrying this momentum into the second half of the year."
Consolidated Results
Consolidated revenue in the second quarter of 2021 was $5.0
billion, an increase of 20% compared with the second quarter of
2020. On an underlying basis, revenue increased 13%. Operating
income was $1.2 billion, an increase of 39% from the prior year.
Adjusted operating income, which excludes noteworthy items as
presented in the attached supplemental schedules, rose 24% to $1.2
billion. Net income attributable to the Company was $820 million,
or $1.60 per diluted share, compared with $1.12 in the second
quarter of 2020. Adjusted earnings per share rose 33% to $1.75 per
diluted share compared with $1.32 for the prior year period.
For the six months ended June 30, 2021, consolidated revenue was
$10.1 billion, an increase of 14%, or 9% on an underlying basis
compared to the prior period. Operating income was $2.6 billion, an
increase of 32% from the prior year period. Adjusted operating
income rose 22% to $2.6 billion. Net income attributable to the
Company was $1.8 billion. Fully diluted earnings per share was
$3.51 compared with $2.60 in the first six months of 2020. Adjusted
earnings per share increased 26% to $3.74 compared with $2.96 for
the comparable period in 2020.
Risk & Insurance Services
Risk & Insurance Services revenue was $3.1 billion in the
second quarter of 2021, an increase of 21%, or 13% on an underlying
basis. Operating income rose 37% to $950 million, and adjusted
operating income was $927 million, an increase of 22% from the
prior year period. For the six months ended June 30, 2021, revenue
was $6.4 billion, an increase of 15%, or 10% on an underlying
basis. Operating income rose 30% to $2.0 billion, and adjusted
operating income was $2.0 billion, an increase of 19% from the
prior year period.
Marsh's revenue in the second quarter was $2.7 billion, an
increase of 14% on an underlying basis. In US/Canada, underlying
revenue rose 15%. International operations produced underlying
revenue growth of 13%, reflecting 16% growth in EMEA, 10% growth in
Asia Pacific, and 2% in Latin America. For the six months ended
June 30, 2021, Marsh's underlying revenue growth was 11% compared
to the prior period a year ago.
Guy Carpenter's revenue in the second quarter was $488 million,
an increase of 12% on an underlying basis. For the six months ended
June 30, 2021, Guy Carpenter's underlying revenue growth was
8%.
Consulting
Consulting revenue in the second quarter was $1.9 billion, an
increase of 17% or 12% on an underlying basis compared to the same
period a year ago. Operating income increased 35% to $344 million,
and adjusted operating income increased 34% to $356 million. For
the first six months of 2021, revenue was $3.8 billion, an increase
of 11%, or an increase of 8% on an underlying basis. Operating
income of $705 million increased 31% and adjusted operating income
increased 31% to $726 million.
Mercer's revenue was $1.3 billion in the second quarter, an
increase of 6% on an underlying basis. Career with revenue of $187
million, was up 15% on an underlying basis. Wealth revenue of $625
million increased 4% on an underlying basis, and Health revenue of
$462 million increased 4% on an underlying basis. For the six
months ended June 30, 2021, Mercer's revenue was $2.6 billion, an
increase of 3% on an underlying basis compared to the same period a
year ago.
Oliver Wyman's revenue was $618 million in the second quarter,
an increase of 28% on an underlying basis. For the first six months
ended June 30, 2021, Oliver Wyman's revenue was $1.2 billion, an
increase of 19% on an underlying basis.
Other Items
The Company repurchased 2.4 million shares of stock for $322
million in the second quarter. Through six months, the Company has
repurchased 3.4 million shares for $434 million.
Last week, the Board of Directors increased the quarterly
dividend 15% to $0.535 per share, with the third quarter dividend
payable on August 13, 2021.
Conference Call
A conference call to discuss second 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 5668714. The live audio webcast may be accessed at
mmc.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 78,000 colleagues advise clients in 130 countries. With
annual revenue of over $18 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 mmc.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:
-- our ability to maintain adequate safeguards to protect the security of
our information systems and confidential, personal or proprietary
information, particularly given the increased risk of cybersecurity
attacks, including hacking, viruses, malware, ransomware and other types
of data security breaches, as well as the heightened risk caused by
remote work arrangements;
-- 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 in the financial services industry;
-- 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 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,
particularly due to recently enacted legislation in the U.K. and
proposals from the U.S. government or from the Organization for Economic
Development and Cooperation, or disagreements with tax authorities;
-- our ability to successfully recover if we experience a business
continuity problem due to cyberattack, natural disaster, government
unrest or otherwise; and
-- the regulatory, contractual and reputational risks that arise based on
insurance placement activities and growing 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 figures)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2021 2020 2021 2020
Revenue $ 5,017 $4,189 $ 10,100 $8,840
Expense:
Compensation and
benefits 2,860 2,429 5,667 4,984
Other operating
expenses 929 875 1,847 1,901
Operating
expenses 3,789 3,304 7,514 6,885
Operating income 1,228 885 2,586 1,955
Other net benefit
credits 71 63 142 127
Interest income 1 2 1 4
Interest expense (110) (132) (228) (259)
Investment income
(loss) 19 (31) 30 (33)
Income before
income taxes 1,209 787 2,531 1,794
Income tax
expense 382 207 706 447
Net income before
non-controlling
interests 827 580 1,825 1,347
Less: Net income
attributable to
non-controlling
interests 7 8 22 21
Net income
attributable to
the Company $ 820 $572 $ 1,803 $1,326
Net income per
share
attributable to
the Company:
- Basic $ 1.61 $1.13 $ 3.55 $2.62
- Diluted $ 1.60 $1.12 $ 3.51 $2.60
Average number
of shares
outstanding
- Basic 508 506 508 505
- Diluted 513 511 514 510
Shares
outstanding at
June 30 507 506 507 506
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Three Months Ended June 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 June GAAP Currency Dispositions/ Underlying
30, Revenue Impact Other Impact Revenue
2021 2020
Risk and
Insurance
Services
Marsh $2,650 $2,161 23% 4% 5% 14%
Guy Carpenter 488 433 13% 1% -- 12%
Subtotal 3,138 2,594 21% 4% 4% 14%
Fiduciary
Interest
Income 3 9
Total Risk and
Insurance
Services 3,141 2,603 21% 4% 4% 13%
Consulting
Mercer 1,274 1,149 11% 6% (1)% 6%
Oliver Wyman
Group 618 467 33% 5% -- 28%
Total
Consulting 1,892 1,616 17% 5% -- 12%
Corporate
Eliminations (16) (30)
Total Revenue $5,017 $4,189 20% 4% 2% 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 June GAAP Currency Dispositions/ Underlying
30, Revenue Impact Other Impact Revenue
2021 2020
Marsh:
EMEA $796 $597 33 % 9% 9 % 16 %
Asia Pacific 347 298 16 % 8% (1) % 10 %
Latin America 103 99 4 % 2% -- 2 %
Total
International 1,246 994 25 % 8% 5 % 13 %
U.S./Canada 1,404 1,167 20 % 1% 5 % 15 %
Total Marsh $2,650 $2,161 23 % 4% 5 % 14 %
Mercer:
Wealth 625 561 11 % 8% (1) % 4 %
Health 462 432 7 % 3% -- 4 %
Career 187 156 20 % 5% -- 15 %
Total Mercer $1,274 $1,149 11 % 6% (1) % 6 %
* Components of revenue change may not add due to rounding.
Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Six Months Ended June 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/
Six Months GAAP Currency Dispositions/ Underlying
Ended June 30, Revenue Impact Other Impact Revenue
2021 2020
Risk and
Insurance
Services
Marsh $4,975 $4,222 18 % 4% 3 % 11 %
Guy Carpenter 1,383 1,260 10 % 2% -- 8 %
Subtotal 6,358 5,482 16 % 3% 3 % 10 %
Fiduciary
Interest
Income 8 32
Total Risk and
Insurance
Services 6,366 5,514 15 % 3% 3 % 10 %
Consulting
Mercer 2,562 2,400 7 % 5% (1) % 3 %
Oliver Wyman
Group 1,203 978 23 % 4% -- 19 %
Total
Consulting 3,765 3,378 11 % 5% (1) % 8 %
Corporate
Eliminations (31) (52)
Total Revenue $10,100 $8,840 14 % 4% 1 % 9 %
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
Components of Revenue Change*
Six Months % Change Acquisitions/
Ended June GAAP Currency Dispositions/ Underlying
30, Revenue Impact Other Impact Revenue
2021 2020
Marsh:
EMEA $1,633 $1,351 21 % 7 % 3 % 11 %
Asia Pacific 621 536 16 % 7 % -- 9 %
Latin America 193 190 2 % (2)% -- 4 %
Total
International 2,447 2,077 18 % 7 % 2 % 9 %
U.S./Canada 2,528 2,145 18 % 1 % 5 % 12 %
Total Marsh $4,975 $4,222 18 % 4 % 3 % 11 %
Mercer:
Wealth 1,248 1,153 8 % 7 % (1 )% 2 %
Health 949 918 3 % 2 % (1 )% 2 %
Career 365 329 11 % 4 % -- 8 %
Total Mercer $2,562 $2,400 7 % 5 % (1 )% 3 %
* Components of revenue change may not add due to rounding.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Three Months Ended June 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 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 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 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 reportable segment basis, for the three and six months ended June 30, 2021
and 2020. The following tables also present adjusted operating margin. For the
three and six months ended June 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
June 30, 2021
Operating income
(loss) $950 $ 344 $ (66) $1,228
Operating margin 30.2% 18.1 % N/A 24.5 %
Add (deduct) impact
of noteworthy
Items:
Restructuring,
excluding JLT (a) 4 3 5 12
Changes in contingent
consideration (b) (5) 1 (3) (7)
JLT integration and
restructuring costs
(c) 11 6 2 19
JLT
acquisition-related
costs (d) 11 1 -- 12
Disposal of
businesses (e) (51) 1 -- (50)
Other 7 -- -- 7
Operating income
adjustments (23) 12 4 (7)
Adjusted operating
income (loss) $927 $ 356 $ (62) $1,221
Total identified
intangible
amortization
expense $75 $ 14 $ -- $89
Adjusted operating
margin 32.4% 19.5 % N/A 26.4 %
Three Months Ended
June 30, 2020
Operating income
(loss), as reported $696 $ 255 $ (66) $885
Operating margin 26.7% 15.8 % N/A 21.1 %
Add (deduct) impact
of noteworthy
Items:
Restructuring,
excluding JLT (a) -- 2 9 11
Changes in contingent
consideration (b) 4 1 2 7
JLT integration and
restructuring costs
(c) 39 7 11 57
JLT
acquisition-related
costs (d) 12 -- 1 13
Disposal of
businesses (e) 6 -- -- 6
Other 5 -- -- 5
Operating income
adjustments 66 10 23 99
Adjusted operating
income (loss) $762 $ 265 $ (43) $984
Total identified
intangible
amortization
expense $75 $ 13 $ -- $88
Adjusted operating
margin 32.1% 17.3 % N/A 25.5 %
(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 JLT integration.
(d) Reflects retention costs related to the closing of the JLT Transaction.
(e) 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
Six Months Ended June 30
(Millions) (Unaudited)
Risk &
Insurance Corporate/
Services Consulting Eliminations Total
Six Months Ended
June 30, 2021
Operating income
(loss) $2,010 $ 705 $ (129) $2,586
Operating margin 31.6 % 18.7 % N/A 25.6 %
Add (deduct) impact
of noteworthy
items:
Restructuring,
excluding JLT (a) 5 8 10 23
Changes in contingent
consideration (b) 1 (5) (3) (7)
JLT integration and
restructuring costs
(c) 27 12 3 42
JLT
acquisition-related
costs (d) 22 2 -- 24
Disposal of business
(e) (53) 4 -- (49)
Other 7 -- -- 7
Operating income
adjustments 9 21 10 40
Adjusted operating
income (loss) $2,019 $ 726 $ (119) $2,626
Total identified
intangible
amortization
expense $161 $ 28 $ -- $189
Adjusted operating
margin 34.5 % 20.0 % N/A 28.0 %
Six Months Ended
June 30, 2020
Operating income
(loss) $1,550 $ 537 $ (132) $1,955
Operating margin 28.1 % 15.9 % N/A 22.1 %
Add (deduct) impact
of noteworthy
items:
Restructuring,
excluding JLT (a) 2 6 12 20
Changes in contingent
consideration (b) 7 (3) 2 6
JLT integration and
restructuring costs
(c) 100 17 20 137
JLT
acquisition-related
costs (d) 24 1 1 26
Disposal of business
(e) 6 (4) -- 2
Other 5 -- -- 5
Operating income
adjustments 144 17 35 196
Adjusted operating
income (loss) $1,694 $ 554 $ (97) $2,151
Total identified
intangible
amortization
expense $147 $ 27 $ -- $174
Adjusted operating
margin 33.4 % 17.2 % N/A 26.3 %
(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 JLT Transaction.
(e) 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 Six Months Ended June 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 investments gains or
losses related to the impact of mark-to-market adjustments on certain equity
securities. 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 six month periods ended June 30, 2021 and 2020.
Three Months Ended June Three Months Ended June
30, 2021 30, 2020
Adjusted Adjusted
Amount EPS Amount EPS
Net income before
non-controlling
interests, as
reported $827 $580
Less:
Non-controlling
interest, net of
tax 7 8
Subtotal $820 $ 1.60 $572 $ 1.12
Operating income
adjustments $(7) $99
Investments
adjustment (a) (1) 25
Income tax effect
of adjustments
(b) (12) (21)
Impact of U.K.
tax rate change
(c) 100 --
80 0.15 103 0.20
Adjusted income,
net of tax $900 $ 1.75 $675 $ 1.32
Six Months Ended June Six Months Ended June 30,
30, 2021 2020
Adjusted Adjusted
Amount EPS Amount EPS
Net income before
non-controlling
interests, as
reported $1,825 $1,347
Less:
Non-controlling
interest, net of
tax 22 21
Subtotal $1,803 $ 3.51 $1,326 $ 2.60
Operating income
adjustments $40 $196
Investments
adjustment (a) (1) 26
Income tax effect
of adjustments
(b) (21) (38)
Impact of U.K.
tax rate change
(c) 100 --
118 0.23 184 0.36
Adjusted income,
net of tax $1,921 $ 3.74 $1,510 $ 2.96
(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 Six Months Ended June 30
(Millions) (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2021 2020 2021 2020
Consolidated
Compensation
and benefits $ 2,860 $2,429 $ 5,667 $4,984
Other
operating
expenses 929 875 1,847 1,901
Total expenses $ 3,789 $3,304 $ 7,514 $6,885
Depreciation
and
amortization
expense $ 104 $91 $ 201 $188
Identified
intangible
amortization
expense 89 88 189 174
Total $ 193 $179 $ 390 $362
Stock option
expense $ 4 $5 $ 25 $21
Risk and
Insurance
Services
Compensation
and benefits $ 1,632 $1,382 $ 3,242 $2,834
Other
operating
expenses 559 525 1,114 1,130
Total expenses $ 2,191 $1,907 $ 4,356 $3,964
Depreciation
and
amortization
expense $ 58 $45 $ 108 $97
Identified
intangible
amortization
expense 75 75 161 147
Total $ 133 $120 $ 269 $244
Consulting
Compensation
and benefits $ 1,110 $940 $ 2,184 $1,931
Other
operating
expenses 438 421 876 910
Total expenses $ 1,548 $1,361 $ 3,060 $2,841
Depreciation
and
amortization
expense $ 29 $29 $ 58 $57
Identified
intangible
amortization
expense 14 13 28 27
Total $ 43 $42 $ 86 $84
Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions)
(Unaudited)
June 30, December 31,
2021 2020
ASSETS
Current assets:
Cash and cash equivalents $ 888 $ 2,089
Net receivables 5,839 5,326
Other current assets 846 740
Total current assets 7,573 8,155
Goodwill and intangible assets 18,492 18,216
Fixed assets, net 816 856
Pension related assets 1,911 1,768
Right of use assets 1,983 1,894
Deferred tax assets 669 702
Other assets 1,509 1,458
TOTAL ASSETS $ 32,953 $ 33,049
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 516 $ 517
Accounts payable and accrued
liabilities 2,830 3,050
Accrued compensation and employee
benefits 1,775 2,400
Current lease liabilities 342 342
Accrued income taxes 353 247
Total current liabilities 5,816 6,556
Fiduciary liabilities 9,936 8,585
Less - cash and investments held in a
fiduciary capacity (9,936) (8,585)
-- --
Long-term debt 10,257 10,796
Pension, post-retirement and
post-employment benefits 2,539 2,662
Long-term lease liabilities 1,992 1,924
Liabilities for errors and omissions 365 366
Other liabilities 1,720 1,485
Total equity 10,264 9,260
TOTAL LIABILITIES AND EQUITY $ 32,953 $ 33,049
Marsh & McLennan Companies, Inc.
Consolidated Statements of Cash Flows
(Millions) (Unaudited)
Six Months Ended June 30,
2021 2020
Operating cash flows:
Net income before non-controlling
interests $ 1,825 $ 1,347
Adjustments to reconcile net income
to cash used for operations:
Depreciation and amortization 390 362
Non cash lease expense 158 165
Share-based compensation expense 176 147
Change in fair value of
acquisition-related derivative
contracts and other 53 15
Changes in Assets and Liabilities:
Accrued compensation and employee
benefits (642) (848)
Net receivables (551) (389)
Other changes to assets and
liabilities (205) 114
Contributions to pension & other
benefit plans in excess of current
year credit (187) (165)
Operating lease liabilities (172) (164)
Effect of exchange rate changes (95) (6)
Net cash provided by operations 750 578
Financing cash flows:
Purchase of treasury shares (434) --
Borrowings from term-loan and credit
facilities -- 1,000
Proceeds from issuance of debt -- 737
Repayments of debt (509) (507)
Net issuance of common stock from
treasury shares (23) (49)
Net distributions of non-controlling
interests and deferred/contingent
consideration (47) (94)
Dividends paid (478) (466)
Net cash (used for) provided by
financing activities (1,491) 621
Investing cash flows:
Capital expenditures (151) (200)
Net (purchase) sale of long-term
investments and other (4) 105
Dispositions 81 93
Acquisitions (363) (562)
Net cash used for investing
activities (437) (564)
Effect of exchange rate changes on
cash and cash equivalents (23) (79)
(Decrease) increase in cash and cash
equivalents (1,201) 556
Cash and cash equivalents at
beginning of period 2,089 1,155
Cash and cash equivalents at end of
period $ 888 $ 1,711
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/20210722005510/en/
CONTACT:
Marsh & McLennan Companies, Inc.
SOURCE: Marsh & McLennan
Copyright Business Wire 2021
(END) Dow Jones Newswires
July 22, 2021 07:00 ET (11:00 GMT)
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