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, 2022.
Dan Glaser, President and CEO, said: "Marsh McLennan had another
excellent quarter, demonstrating continued momentum across the
business. We generated 8% underlying revenue growth and 110 basis
points of adjusted operating margin expansion, which translated
into solid 9% growth in adjusted EPS. Our advice and solutions
remain in high demand as our clients navigate an uncertain and
volatile macroeconomic and geopolitical landscape."
As previously announced, Dan Glaser will retire at the end of
the year and John Doyle will succeed him as President and Chief
Executive Officer, effective January 1, 2023. Mr. Glaser said, "It
has been a privilege to work side by side with our talented
colleagues, and I am proud of everything we have accomplished
together. There is no one I trust more than John to lead our
Company, and I am confident Marsh McLennan's extraordinary success
will continue under his leadership."
Consolidated Results
Consolidated revenue in the third quarter of 2022 was $4.8
billion, an increase of 4% compared with the third quarter of 2021.
On an underlying basis, revenue increased 8%. Operating income was
$791 million, an increase of 7% from the prior year. Adjusted
operating income, which excludes noteworthy items as presented in
the attached supplemental schedules, rose 12% to $851 million. Net
income attributable to the Company was $546 million, or $1.08 per
diluted share, compared with $1.05 in the third quarter of 2021.
Adjusted earnings per share rose 9% to $1.18 per diluted share
compared with $1.08 a year ago.
For the nine months ended September 30, 2022, consolidated
revenue was $15.7 billion, an increase of 7% compared to the prior
year period. On an underlying basis, revenue increased 9%.
Operating income was $3.6 billion, an increase of 8% from a year
ago. Adjusted operating income, which excludes noteworthy items as
presented in the attached supplemental schedules, rose 11% to $3.7
billion. Net income attributable to the Company was $2.6 billion,
or $5.11 per diluted share, compared with $4.56 in the first nine
months of 2021. Adjusted earnings per share rose 12% to $5.38 per
diluted share compared with $4.82 for the first nine months of
2021.
Risk & Insurance Services
Risk & Insurance Services revenue was $2.8 billion in the
third quarter of 2022, an increase of 6%, or 9% on an underlying
basis. Operating income rose 32% to $529 million, and adjusted
operating income was $562 million, an increase of 20% versus a year
ago. For the first nine months ended September 30, 2022, revenue
was $9.7 billion, an increase of 7%, or 10% on an underlying basis.
Operating income rose 8% to $2.6 billion, and adjusted operating
income was $2.8 billion, an increase of 13% versus a year ago.
Marsh's revenue in the third quarter was $2.5 billion, an
increase of 8% on an underlying basis. In U.S./Canada, underlying
revenue rose 5%. International operations produced underlying
revenue growth of 11%, reflecting 15% growth in Latin America, 14%
growth in Asia Pacific, and 9% growth in EMEA. For the first nine
months ended September 30, 2022, Marsh's underlying revenue growth
was 9%.
Guy Carpenter's revenue in the third quarter was $328 million,
an increase of 7% on an underlying basis. For the first nine months
ended September 30, 2022, Guy Carpenter's underlying revenue growth
was 10%.
Consulting
Consulting revenue was $2.0 billion in the third quarter of
2022, an increase of 1%, or 8% on an underlying basis. Operating
income decreased 14% to $350 million, while adjusted operating
income increased 3% to $362 million. For the first nine months
ended September 30, 2022, Consulting revenue was $6.0 billion, an
increase of 6%, or 9% on an underlying basis. Operating income of
$1.2 billion increased 10% and adjusted operating income increased
5% to $1.1 billion.
Mercer's revenue in the third quarter was $1.3 billion, an
increase of 5% on an underlying basis. Career revenue of $272
million was up 15% on an underlying basis. Health revenue of $451
million increased 10% on an underlying basis, and Wealth revenue of
$561 million decreased 1% on an underlying basis. For the first
nine months ended September 30, 2022, Mercer's revenue was $4.0
billion, an increase of 6% on an underlying basis.
Oliver Wyman's revenue in the third quarter was $667 million, an
increase of 13% on an underlying basis. For the first nine months
ended September 30, 2022, Oliver Wyman's revenue was $2.0 billion,
an increase of 15% on an underlying basis.
Other Items
The Company repurchased 3.1 million shares of stock for $500
million in the third quarter. Through nine months, the Company has
repurchased 10.1 million shares of stock for $1.6 billion.
Conference Call
A conference call to discuss third quarter 2022 results will be
held today at 8:30 a.m. Eastern time. The live audio webcast may be
accessed at marshmclennan.com. A replay of the webcast will be
available approximately two hours after the event. The webcast is
listen-only. Those interested in participating in the
question-and-answer session may register here to receive the
dial-in numbers and unique PIN to access the call.
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 86,000 colleagues advise clients in 130 countries. With
annual revenue of over $20 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 impact of geopolitical or macroeconomic conditions on us, our clients
and the countries and industries in which we operate, including from
conflicts such as the war in Ukraine, slower GDP growth or recession,
capital markets volatility and inflation;
-- 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, including claims related to
our investment business' ability to execute timely trades;
-- the financial and operational impact of complying with laws and
regulations, including domestic and international sanctions regimes,
anti-corruption laws such as the U.S. Foreign Corrupt Practices Act, U.K.
Anti Bribery Act and cybersecurity and data privacy regulations;
-- our ability to attract, retain and develop industry leading talent;
-- our ability to compete effectively and adapt to competitive pressures in
each of our businesses, including from disintermediation as well as
technological change, digital disruption and other types of innovation;
-- our ability to manage potential conflicts of interest, including where
our services to a client conflict, or are perceived to conflict, with the
interests of another client or our own interests;
-- 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 (collectively, the "Company") 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,
2022 2021 2022 2021
Revenue $4,770 $4,583 $15,698 $14,683
Expense:
Compensation and
benefits 2,923 2,853 9,033 8,520
Other operating
expenses 1,056 990 3,065 2,837
Operating
expenses 3,979 3,843 12,098 11,357
Operating income 791 740 3,600 3,326
Other net benefit
credits 57 69 178 211
Interest income 4 1 6 2
Interest expense (118 ) (107 ) (342 ) (335 )
Investment (loss)
income (1 ) 13 27 43
Income before
income taxes 733 716 3,469 3,247
Income tax
expense 181 174 853 880
Net income before
non-controlling
interests 552 542 2,616 2,367
Less: Net income
attributable to
non-controlling
interests 6 5 32 27
Net income
attributable to
the Company $546 $537 $2,584 $2,340
Net income per
share
attributable to
the Company:
- Basic $1.10 $1.06 $5.16 $4.61
- Diluted $1.08 $1.05 $5.11 $4.56
Average number
of shares
outstanding:
- Basic 498 506 501 508
- Diluted 503 513 506 513
Shares
outstanding at
September 30 497 505 497 505
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
2022 2021
Risk and
Insurance
Services
Marsh $2,470 $2,352 5 % (4)% 1 % 8 %
Guy Carpenter 328 314 4 % (3)% -- 7 %
Subtotal 2,798 2,666 5 % (4)% 1 % 8 %
Fiduciary
interest
income 40 4
Total Risk and
Insurance
Services 2,838 2,670 6 % (4)% 1 % 9 %
Consulting
Mercer 1,284 1,315 (2)% (6)% (2 )% 5 %
Oliver Wyman
Group 667 610 9 % (5)% 1 % 13%
Total
Consulting 1,951 1,925 1 % (6)% (1 )% 8 %
Corporate
Eliminations (19 ) (12 )
Total Revenue $4,770 $4,583 4 % (5)% -- 8 %
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 September GAAP Currency Dispositions/ Underlying
30, Revenue Impact Other Impact Revenue
2022 2021
Marsh:
EMEA $589 $600 (2)% (11)% (1 )% 9 %
Asia Pacific 312 281 11% (9 )% 7 % 14%
Latin America 118 105 12% (3 )% -- 15%
Total
International 1,019 986 3 % (9 )% 2 % 11%
U.S./Canada 1,451 1,366 6 % -- 1 % 5 %
Total Marsh $2,470 $2,352 5 % (4 )% 1 % 8 %
Mercer:
Wealth $561 $613 (9)% (7 )% -- (1)%
Health 451 449 1 % (4 )% (5 )% 10%
Career 272 253 8 % (7 )% -- 15%
Total Mercer $1,284 $1,315 (2)% (6 )% (2 )% 5 %
* 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
2022 2021
Risk and
Insurance
Services
Marsh $7,794 $7,327 6 % (3)% -- 9 %
Guy Carpenter 1,849 1,697 9 % (2)% 1 % 10%
Subtotal 9,643 9,024 7 % (3)% 1 % 9 %
Fiduciary
interest
income 57 12
Total Risk and
Insurance
Services 9,700 9,036 7 % (3)% 1 % 10%
Consulting
Mercer 4,016 3,877 4 % (4)% 2 % 6 %
Oliver Wyman
Group 2,029 1,813 12% (4)% 1 % 15%
Total
Consulting 6,045 5,690 6 % (4)% 1 % 9 %
Corporate
Eliminations (47 ) (43 )
Total Revenue $15,698 $14,683 7 % (3)% 1 % 9 %
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 September GAAP Currency Dispositions/ Underlying
30, Revenue Impact Other Impact Revenue
2022 2021
Marsh:
EMEA $2,176 $2,233 (3 ) % (7 ) % (4 ) % 8 %
Asia Pacific 1,015 902 13% (7 ) % 6 % 14%
Latin America 340 298 14% (1 ) % -- 15%
Total
International 3,531 3,433 3 % (6 ) % (1 ) % 10%
U.S./Canada 4,263 3,894 9 % -- 1 % 8 %
Total Marsh $7,794 $7,327 6 % (3 ) % -- 9 %
Mercer:
Wealth $1,775 $1,861 (5 ) % (5 ) % -- 1 %
Health 1,562 1,398 12% (3 ) % 5 % 10%
Career 679 618 10% (5 ) % -- 15%
Total Mercer $4,016 $3,877 4 % (4 ) % 2 % 6 %
* 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 in accordance with 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,
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,
2022 and 2021. The following tables also present adjusted operating
margin. For the three and nine months ended September 30, 2022 and
2021, 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, 2022
Operating income
(loss) $529 $ 350 $ (88 ) $791
Operating margin 18.7% 17.9 % N/A 16.6%
Add (deduct) impact
of noteworthy
items:
Restructuring (a) 18 5 15 38
Changes in contingent
consideration (b) 11 -- -- 11
JLT
acquisition-related
costs (c) 4 -- -- 4
Other -- 7 -- 7
Operating income
adjustments 33 12 15 60
Adjusted operating
income (loss) $562 $ 362 $ (73 ) $851
Total identified
intangible
amortization
expense $74 $ 10 $ -- $84
Adjusted operating
margin 22.4% 19.1 % N/A 19.6%
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 (a) 18 9 4 31
Changes in contingent
consideration (b) 17 1 -- 18
JLT
acquisition-related
costs (c) 10 -- 1 11
JLT legacy legal
charges (d) -- (63 ) -- (63 )
Legal claims and
other (e) 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%
(a) Restructuring activities reflect costs primarily related to the
Company's global information technology and HR functions, JLT
integration costs, Marsh operational excellence 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 retention costs related to the acquisition of JLT.
(d) 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.
(e) 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, 2022
Operating income
(loss) $2,617 $ 1,217 $ (234 ) $3,600
Operating margin 27.0 % 20.1 % N/A 22.9 %
Add (deduct) impact
of noteworthy
items:
Restructuring (a) 44 16 36 96
Changes in contingent
consideration (b) 33 5 -- 38
JLT
acquisition-related
costs (c) 24 1 3 28
JLT legacy legal
charges (d) 14 (11 ) -- 3
Disposal of
businesses (e) -- (114 ) -- (114 )
Deconsolidation of
Russian businesses
and other related
charges (f) 42 10 -- 52
Legal claims and
other (g) 30 9 -- 39
Operating income
adjustments 187 (84 ) 39 142
Adjusted operating
income (loss) $2,804 $ 1,133 $ (195 ) $3,742
Total identified
intangible
amortization
expense $223 $ 35 $ -- $258
Adjusted operating
margin 31.1 % 19.6 % N/A 25.6 %
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 (a) 50 29 17 96
Changes in contingent
consideration (b) 18 (4 ) (3 ) 11
JLT
acquisition-related
costs (c) 32 2 1 35
JLT legacy legal
charges (d) -- (63 ) -- (63 )
Disposal of
businesses (e) (52 ) 3 -- (49 )
Legal claims and
other (g) 27 -- 2 29
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 %
(a) Restructuring activities reflect costs primarily related to the
Company's global information technology and HR functions, JLT
integration costs, Marsh operational excellence 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 retention costs related to the acquisition of JLT.
(d) Reflects charges and recoveries related to legacy JLT legal matters.
2021 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.
(e) Reflects primarily a gain of $112 million during the second quarter of
2022 on the sale of the Mercer U.S. affinity business. In 2021, the
amount reflects a gain of $49 million primarily related to the sale of
the U.K. commercial networks business. These amounts are included in
revenue in the consolidated statements of income and excluded from
underlying revenue and adjusted revenue in the calculation of adjusted
operating margin.
(f) Loss on deconsolidation of Russian businesses and other related
charges. The loss on deconsolidation of $39 million is included in
revenue in the consolidated statements of income and excluded from
underlying revenue and adjusted revenue used in the calculation of
adjusted operating margin.
(g) Primarily reflects settlement charges and legal costs related to
strategic recruiting.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Three and Nine Months Ended September 30
(In millions, except per share data)
(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 the 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 months ended September 30,
2022 and 2021.
Three Months Ended Three Months Ended
September 30, 2022 September 30, 2021
Adjusted Adjusted
Amount EPS Amount EPS
Net income
before
non-controlling
interests, as
reported $552 $542
Less:
Non-controlling
interest, net
of tax 6 5
Subtotal $546 $1.08 $537 $1.05
Operating income
adjustments $60 $19
Investments
adjustment (a) 4 (1 )
Pension
settlement
adjustment (b) -- 2
Income tax
effect of
adjustments
(c) (16) (10)
Impact of U.K.
tax rate change
(d) -- 5
48 0.10 15 0.03
Adjusted income,
net of tax $594 $1.18 $552 $1.08
Nine Months Ended Nine Months Ended
September 30, 2022 September 30, 2021
Adjusted Adjusted
Amount EPS Amount EPS
Net income
before
non-controlling
interests, as
reported $2,616 $2,367
Less:
Non-controlling
interest, net
of tax 32 27
Subtotal $2,584 $5.11 $2,340 $4.56
Operating income
adjustments $142 $59
Investments
adjustment (a) (4 ) (2 )
Pension
settlement
adjustment (b) 1 2
Income tax
effect of
adjustments
(c) (1 ) (31)
Impact of U.K.
tax rate change
(d) -- 105
138 0.27 133 0.26
Adjusted income,
net of tax $2,722 $5.38 $2,473 $4.82
(a) In the third quarter of 2022, amount represents a net loss from the
sale of investments, including the Company's remaining investment in
Alexander Forbes ("AF"). Amounts for the other periods presented
reflect mark to market gains.
(b) Charges resulting from lump sum pension settlements elected by
participants.
(c) 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.
(d) 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,
2022 2021 2022 2021
Consolidated
Compensation and
benefits $ 2,923 $2,853 $ 9,033 $8,520
Other operating
expenses 1,056 990 3,065 2,837
Total expenses $ 3,979 $3,843 $ 12,098 $11,357
Depreciation and
amortization
expense $ 85 $90 $ 259 $291
Identified
intangible
amortization
expense 84 89 258 278
Total $ 169 $179 $ 517 $569
Risk and Insurance
Services
Compensation and
benefits $ 1,688 $1,634 $ 5,239 $4,876
Other operating
expenses 621 633 1,844 1,747
Total expenses $ 2,309 $2,267 $ 7,083 $6,623
Depreciation and
amortization
expense $ 40 $44 $ 123 $152
Identified
intangible
amortization
expense 74 75 223 236
Total $ 114 $119 $ 346 $388
Consulting
Compensation and
benefits $ 1,107 $1,103 $ 3,416 $3,287
Other operating
expenses 494 418 1,412 1,294
Total expenses $ 1,601 $1,521 $ 4,828 $4,581
Depreciation and
amortization
expense $ 26 $29 $ 79 $87
Identified
intangible
amortization
expense 10 14 35 42
Total $ 36 $43 $ 114 $129
Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions)
(Unaudited)
September 30,
2022 December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents $ 802 $ 1,752
Net receivables 5,819 5,586
Other current assets 953 926
Total current assets 7,574 8,264
Goodwill and intangible assets 17,979 19,127
Fixed assets, net 865 847
Pension related assets 2,074 2,270
Right of use assets 1,615 1,868
Deferred tax assets 533 551
Other assets 1,383 1,461
TOTAL ASSETS $ 32,023 $ 34,388
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 967 $ 17
Accounts payable and accrued
liabilities 2,903 3,165
Accrued compensation and
employee benefits 2,396 2,942
Current lease liabilities 298 332
Accrued income taxes 432 198
Dividends payable 296 --
Total current liabilities 7,292 6,654
Fiduciary liabilities 10,608 9,622
Less - cash and cash
equivalents held in a
fiduciary capacity (10,608 ) (9,622 )
-- --
Long-term debt 10,399 10,933
Pension, post-retirement and
post-employment benefits 1,309 1,632
Long-term lease liabilities 1,620 1,880
Liabilities for errors and
omissions 331 355
Other liabilities 1,281 1,712
Total equity 9,791 11,222
TOTAL LIABILITIES AND EQUITY $ 32,023 $ 34,388
Marsh & McLennan Companies, Inc.
Consolidated Statements of Cash Flows
(Millions) (Unaudited)
Nine Months Ended
September 30,
2022 2021
Operating cash flows:
Net income before non-controlling interests $ 2,616 $2,367
Adjustments to reconcile net income to cash
provided by operations:
Depreciation and amortization 517 569
Non-cash lease expense 223 241
Deconsolidation of Russian businesses 39 --
Share-based compensation expense 283 263
Net gain on investments, disposition of assets
and other (139 ) (96 )
Changes in assets and liabilities:
Accrued compensation and employee benefits (451 ) (20 )
Provision for taxes, net of payments and
refunds 156 196
Net receivables (745 ) (604 )
Other changes to assets and liabilities 14 (298 )
Contributions to pension and other benefit
plans in excess of current year credit (306 ) (282 )
Operating lease liabilities (244 ) (262 )
Net cash provided by operations 1,963 2,074
Financing cash flows:
Purchase of treasury shares (1,600) (734 )
Net proceeds from issuance of commercial paper 600 --
Repayments of debt (14 ) (512 )
Net issuance of common stock from treasury
shares (105 ) 16
Net distributions of non-controlling interests
and deferred/contingent consideration (161 ) (66 )
Dividends paid (840 ) (750 )
Increase in fiduciary liabilities 2,148 1,919
Net cash provided by (used for) financing
activities 28 (127 )
Investing cash flows:
Capital expenditures (367 ) (268 )
Purchases of long term investments and other (5 ) (34 )
Sales of long term investments 84 30
Dispositions 138 84
Acquisitions, net of cash and cash held in a
fiduciary capacity acquired (213 ) (384 )
Net cash used for investing activities (363 ) (572 )
Effect of exchange rate changes on cash, cash
equivalents, and cash and cash equivalents
held in a fiduciary capacity (1,592) (243 )
Increase in cash, cash equivalents, and cash
and cash equivalents held in a fiduciary
capacity 36 1,132
Cash, cash equivalents, and cash and cash
equivalents held in a fiduciary capacity at
beginning of period 11,374 10,674
Cash, cash equivalents, and cash and cash
equivalents held in a fiduciary capacity at
end of period $ 11,410 $11,806
Reconciliation of cash, cash equivalents, and cash and cash equivalents
held in a fiduciary capacity to the Consolidated Balance Sheets
Nine Months Ended September 30, 2022 2021
(In millions)
Cash and cash equivalents $802 $1,398
Cash and cash equivalents held in a fiduciary capacity 10,608 10,408
Total cash, cash equivalents, and cash and cash
equivalents held in a fiduciary capacity $11,410 $11,806
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/20221019006112/en/
CONTACT:
Marsh & McLennan
SOURCE: Marsh & McLennan
Copyright Business Wire 2022
(END) Dow Jones Newswires
October 20, 2022 07:00 ET (11:00 GMT)
Marsh & Mclennan Cos (LSE:MHM)
過去 株価チャート
から 12 2024 まで 1 2025
Marsh & Mclennan Cos (LSE:MHM)
過去 株価チャート
から 1 2024 まで 1 2025
