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,
2022.
Dan Glaser, President and CEO, said: "Marsh McLennan delivered
another strong quarter. We generated double-digit underlying
growth, margin expansion and solid growth in adjusted EPS with
momentum across all of our businesses. Our performance reflects
continued demand for our advice and solutions and the value we
deliver for clients."
Consolidated Results
Consolidated revenue in the second quarter of 2022 was $5.4
billion, an increase of 7% compared with the second quarter of
2021. On an underlying basis, revenue increased 10%. Operating
income was $1.4 billion, an increase of 11% from the prior year.
Adjusted operating income, which excludes noteworthy items as
presented in the attached supplemental schedules, rose 8% to $1.3
billion. Net income attributable to the Company was $967 million,
or $1.91 per diluted share, compared with $1.60 in the second
quarter of 2021. Adjusted earnings per share rose 8% to $1.89 per
diluted share compared with $1.75 a year ago and included a
headwind of 3 cents per share from foreign exchange.
For the six months ended June 30, 2022, consolidated revenue was
$10.9 billion, an increase of 8% compared to the prior year period.
On an underlying basis, revenue increased 10%. Operating income was
$2.8 billion, an increase of 9% from a year ago. Adjusted operating
income, which excludes noteworthy items as presented in the
attached supplemental schedules, rose 10% to $2.9 billion. Net
income attributable to the Company was $2.0 billion, or $4.01 per
diluted share, compared with $3.51 in the first six months of 2021.
Adjusted earnings per share rose 12% to $4.19 per diluted share
compared with $3.74 for the first six months of 2021.
Risk & Insurance Services
Risk & Insurance Services revenue was $3.3 billion in the
second quarter of 2022, an increase of 5%, or 9% on an underlying
basis. Operating income rose 2% to $967 million, and adjusted
operating income was $1.0 billion, an increase of 9% versus a year
ago. For the first six months ended June 30, 2022, revenue was $6.9
billion, an increase of 8%, or 10% on an underlying basis.
Operating income rose 4% to $2.1 billion, and adjusted operating
income was $2.2 billion, an increase of 11% versus a year ago.
Marsh's revenue in the second quarter was $2.8 billion, an
increase of 9% on an underlying basis. In U.S./Canada, underlying
revenue rose 10%. International operations produced underlying
revenue growth of 9%, reflecting 14% growth in Latin America, 11%
growth in Asia Pacific, and 7% growth in EMEA. For the first six
months ended June 30, 2022, Marsh's underlying revenue growth was
10%.
Guy Carpenter's revenue in the second quarter was $522 million,
an increase of 9% on an underlying basis. For the first six months
ended June 30, 2022, Guy Carpenter's underlying revenue growth was
10%.
Consulting
Consulting revenue was $2.1 billion in the second quarter of
2022, an increase of 10% on both a reported and underlying basis.
Operating income increased 39% to $475 million, and adjusted
operating income increased 4% to $369 million. For the first six
months ended June 30, 2022, Consulting revenue was $4.1 billion, an
increase of 9%, or 10% on an underlying basis. Operating income of
$867 million increased 23% and adjusted operating income increased
6% to $771 million.
Mercer's revenue in the second quarter was $1.4 billion, an
increase of 7% on an underlying basis. Career revenue of $205
million was up 17% on an underlying basis. Health revenue of $587
million increased 10% on an underlying basis, and Wealth revenue of
$597 million increased 1% on an underlying basis. For the first six
months ended June 30, 2022, Mercer's revenue was $2.7 billion, an
increase of 7% on an underlying basis.
Oliver Wyman's revenue in the second quarter was $695 million,
an increase of 16% on an underlying basis. For the first six months
ended June 30, 2022, Oliver Wyman's revenue was $1.4 billion, an
increase of 16% on an underlying basis.
Other Items
The Company repurchased 3.8 million shares of stock for $600
million in the second quarter. Through six months, the Company has
repurchased 7.0 million shares of stock for $1.1 billion.
Last week, the Board of Directors increased the quarterly
dividend 10% to $0.590 per share, with the third quarter dividend
payable on August 15, 2022.
In June, Marsh McLennan Agency (MMA) announced the acquisition
of Clark Insurance, a leading independent insurance agency in
Maine. In July, MMA announced the acquisition of CS Insurance
Strategies, Inc., a full-service insurance agency based in
Chicago.
Conference Call
A conference call to discuss second quarter 2022 results will be
held today at 8:30 a.m. Eastern time. To participate in the
teleconference, please dial +1 866 374 5140. Callers from outside
the United States should dial +1 404 400 0571. The access code for
both numbers is 24128163. The live audio webcast may be accessed at
marshmclennan.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 83,000 colleagues advise clients in 130 countries. With
annual revenue of approximately $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 Six Months Ended
Ended June 30, June 30,
2022 2021 2022 2021
Revenue $5,379 $5,017 $10,928 $10,100
Expense:
Compensation and
benefits 3,010 2,860 6,110 5,667
Other operating
expenses 1,005 929 2,009 1,847
Operating
expenses 4,015 3,789 8,119 7,514
Operating income 1,364 1,228 2,809 2,586
Other net benefit
credits 59 71 121 142
Interest income 1 1 2 1
Interest expense (114 ) (110 ) (224 ) (228 )
Investment income 2 19 28 30
Income before
income taxes 1,312 1,209 2,736 2,531
Income tax
expense 334 382 672 706
Net income before
non-controlling
interests 978 827 2,064 1,825
Less: Net income
attributable to
non-controlling
interests 11 7 26 22
Net income
attributable to
the Company $967 $820 $2,038 $1,803
Net income per
share
attributable to
the Company:
- Basic $1.93 $1.61 $4.06 $3.55
- Diluted $1.91 $1.60 $4.01 $3.51
Average number
of shares
outstanding:
- Basic 501 508 502 508
- Diluted 506 513 508 514
Shares
outstanding at
June 30 499 507 499 507
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*
%
Change Acquisitions/
Three Months GAAP Currency Dispositions/ Underlying
Ended June 30, Revenue Impact Other Impact Revenue
2022 2021
Risk and
Insurance
Services
Marsh $2,778 $2,650 5 % (3 ) % (1 ) % 9 %
Guy Carpenter 522 488 7 % (3 ) % 1 % 9 %
Subtotal 3,300 3,138 5 % (3 ) % (1 ) % 9 %
Fiduciary
interest
income 13 3
Total Risk and
Insurance
Services 3,313 3,141 5 % (3 ) % (1 ) % 9 %
Consulting
Mercer 1,389 1,274 9 % (5 ) % 7 % 7 %
Oliver Wyman
Group 695 618 12 % (4 ) % 1 % 16 %
Total
Consulting 2,084 1,892 10 % (5 ) % 5 % 10 %
Corporate
Eliminations (18 ) (16 )
Total Revenue $5,379 $5,017 7 % (4 ) % 1 % 10 %
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
Components of Revenue Change*
%
Change Acquisitions/
Three Months GAAP Currency Dispositions/ Underlying
Ended June 30, Revenue Impact Other Impact Revenue
2022 2021
Marsh:
EMEA $745 $796 (6 ) % (7 ) % (6 ) % 7 %
Asia Pacific 382 347 10 % (7 ) % 6 % 11 %
Latin America 118 103 15 % -- 1 % 14 %
Total
International 1,245 1,246 -- (6 ) % (2 ) % 9 %
U.S./Canada 1,533 1,404 9 % -- -- 10 %
Total Marsh $2,778 $2,650 5 % (3 ) % (1 ) % 9 %
Mercer:
Wealth $597 $625 (5 ) % (6 ) % -- 1 %
Health 587 462 27 % (3 ) % 20 % 10 %
Career 205 187 11 % (6 ) % -- 17 %
Total Mercer $1,389 $1,274 9 % (5 ) % 7 % 7 %
* 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 Ended GAAP Currency Dispositions/ Underlying
June 30, Revenue Impact Other Impact Revenue
2022 2021
Risk and
Insurance
Services
Marsh $5,324 $4,975 7 % (3 ) % -- 10 %
Guy Carpenter 1,521 1,383 10 % (2 ) % 1 % 10 %
Subtotal 6,845 6,358 8 % (2 ) % -- 10 %
Fiduciary
interest
income 17 8
Total Risk and
Insurance
Services 6,862 6,366 8 % (2 ) % -- 10 %
Consulting
Mercer 2,732 2,562 7 % (3 ) % 4 % 7 %
Oliver Wyman
Group 1,362 1,203 13 % (3 ) % -- 16 %
Total
Consulting 4,094 3,765 9 % (3 ) % 2 % 10 %
Corporate
Eliminations (28 ) (31 )
Total Revenue $10,928 $10,100 8 % (3 ) % 1 % 10 %
Revenue Details
The following table provides more detailed revenue information
for certain of the components presented above:
Components of Revenue Change*
%
Change Acquisitions/
Six Months GAAP Currency Dispositions/ Underlying
Ended June 30, Revenue Impact Other Impact Revenue
2022 2021
Marsh:
EMEA $1,587 $1,633 (3 ) % (6 ) % (5 ) % 8 %
Asia Pacific 703 621 13 % (6 ) % 5 % 14 %
Latin America 222 193 15 % (1 ) % -- 15 %
Total
International 2,512 2,447 3 % (5 ) % (2 ) % 10 %
U.S./Canada 2,812 2,528 11 % -- 2 % 10 %
Total Marsh $5,324 $4,975 7 % (3 ) % -- 10 %
Mercer:
Wealth $1,214 $1,248 (3 ) % (4 ) % -- 1 %
Health 1,111 949 17 % (2 ) % 10 % 10 %
Career 407 365 11 % (4 ) % -- 16 %
Total Mercer $2,732 $2,562 7 % (3 ) % 4 % 7 %
* 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
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 six months ended June 30, 2022 and
2021. The following tables also present adjusted operating margin.
For the three and six months ended June 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
June 30, 2022
Operating income
(loss) $967 $ 475 $ (78 ) $1,364
Operating margin 29.2 % 22.8 % N/A 25.4 %
Add (deduct) impact
of noteworthy
items:
Restructuring (a) 11 4 13 28
Changes in contingent
consideration (b) 12 5 -- 17
JLT
acquisition-related
costs (c) 11 -- 3 14
JLT legacy legal
charges (d) 11 (1 ) -- 10
Disposal of
businesses (e) -- (112 ) -- (112 )
Deconsolidation of
the Russian
businesses related
charges 2 (2 ) -- --
Operating income
adjustments 47 (106 ) 16 (43 )
Adjusted operating
income (loss) $1,014 $ 369 $ (62 ) $1,321
Total identified
intangible
amortization
expense $71 $ 12 $ -- $83
Adjusted operating
margin 32.8 % 19.3 % N/A 26.7 %
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 (a) 15 9 7 31
Changes in contingent
consideration (b) (5 ) 1 (3 ) (7 )
JLT
acquisition-related
costs (c) 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 %
(a) Restructuring activities reflect costs 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 as measured each quarter.
(c) Includes retention costs related to the acquisition of JLT.
(d) Reflects charges and recoveries related to legacy JLT legal matters.
(e) Reflects a gain of $112 million on the sale of the Mercer U.S. affinity
business during the second quarter of 2022. The second quarter of 2021
reflects a gain of $50 million primarily on 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.
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, 2022
Operating income
(loss) $2,088 $ 867 $ (146 ) $2,809
Operating margin 30.4 % 21.2 % N/A 25.7 %
Add (deduct) impact
of noteworthy
items:
Restructuring (a) 26 11 21 58
Changes in contingent
consideration (b) 22 5 -- 27
JLT
acquisition-related
costs (c) 20 1 3 24
JLT legacy legal
charges (d) 14 (11 ) -- 3
Disposal of
businesses (e) -- (112 ) -- (112 )
Deconsolidation of
Russian businesses
and other related
charges (f) 42 10 -- 52
Legal claims (g) 30 -- -- 30
Operating income
adjustments 154 (96 ) 24 82
Adjusted operating
income (loss) $2,242 $ 771 $ (122 ) $2,891
Total identified
intangible
amortization
expense $149 $ 25 $ -- $174
Adjusted operating
margin 34.7 % 19.9 % N/A 28.2 %
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 (a) 32 20 13 65
Changes in contingent
consideration (b) 1 (5 ) (3 ) (7 )
JLT
acquisition-related
costs (c) 22 2 -- 24
Disposal of
businesses (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 %
(a) Restructuring activities reflect costs 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 as measured each quarter.
(c) Includes retention costs related to the acquisition of JLT.
(d) Reflects charges and recoveries related to legacy JLT legal matters.
(e) Reflects a gain of $112 million on the sale of the Mercer U.S. affinity
business during the second quarter of 2022. The second quarter of 2021
reflects a gain of $49 million primarily on 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) Settlement charges and legal costs related to strategic recruiting.
Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Three and Six Months Ended June 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 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 months ended June 30, 2022 and 2021.
Three Months Ended Three Months Ended
June 30, 2022 June 30, 2021
Adjusted Adjusted
Amount EPS Amount EPS
Net income
before
non-controlling
interests, as
reported $978 $827
Less:
Non-controlling
interest, net
of tax 11 7
Subtotal $967 $ 1.91 $820 $ 1.60
Operating income
adjustments $(43) $(7 )
Investments
adjustment (a) 1 (1 )
Pension
settlement
adjustment (b) 1 --
Income tax
effect of
adjustments
(c) 33 (12)
Impact of U.K.
tax rate change
(d) -- 100
(8 ) (0.02) 80 0.15
Adjusted income,
net of tax $959 $ 1.89 $900 $ 1.75
Six Months Ended Six Months Ended
June 30, 2022 June 30, 2021
Adjusted Adjusted
Amount EPS Amount EPS
Net income
before
non-controlling
interests, as
reported $2,064 $1,825
Less:
Non-controlling
interest, net
of tax 26 22
Subtotal $2,038 $ 4.01 $1,803 $ 3.51
Operating income
adjustments $82 $40
Investments
adjustment (a) (8 ) (1 )
Pension
settlement
adjustment (b) 1 --
Income tax
effect of
adjustments
(c) 15 (21)
Impact of U.K.
tax rate change
(d) -- 100
90 0.18 118 0.23
Adjusted income,
net of tax $2,128 $ 4.19 $1,921 $ 3.74
(a) Represents mark-to-market losses and gains, primarily related to the
Company's investment in Alexander Forbes ("AF").
(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 Six Months Ended June 30
(Millions) (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2022 2021 2022 2021
Consolidated
Compensation and
benefits $ 3,010 $2,860 $ 6,110 $5,667
Other operating
expenses 1,005 929 2,009 1,847
Total expenses $ 4,015 $3,789 $ 8,119 $7,514
Depreciation and
amortization
expense $ 85 $104 $ 174 $201
Identified
intangible
amortization
expense 83 89 174 189
Total $ 168 $193 $ 348 $390
Stock option expense $ 7 $4 $ 12 $25
Risk and Insurance
Services
Compensation and
benefits $ 1,750 $1,632 $ 3,551 $3,242
Other operating
expenses 596 559 1,223 1,114
Total expenses $ 2,346 $2,191 $ 4,774 $4,356
Depreciation and
amortization
expense $ 40 $58 $ 83 $108
Identified
intangible
amortization
expense 71 75 149 161
Total $ 111 $133 $ 232 $269
Consulting
Compensation and
benefits $ 1,145 $1,110 $ 2,309 $2,184
Other operating
expenses 464 438 918 876
Total expenses $ 1,609 $1,548 $ 3,227 $3,060
Depreciation and
amortization
expense $ 27 $29 $ 53 $58
Identified
intangible
amortization
expense 12 14 25 28
Total $ 39 $43 $ 78 $86
Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions)
(Unaudited)
June 30, December 31,
2022 2021
ASSETS
Current assets:
Cash and cash equivalents $ 909 $ 1,752
Net receivables 6,286 5,586
Other current assets 974 926
Total current assets 8,169 8,264
Goodwill and intangible assets 18,501 19,127
Fixed assets, net 863 847
Pension related assets 2,160 2,270
Right of use assets 1,744 1,868
Deferred tax assets 537 551
Other assets 1,466 1,461
TOTAL ASSETS $ 33,440 $ 34,388
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 1,311 $ 17
Accounts payable and accrued
liabilities 3,029 3,165
Accrued compensation and employee
benefits 1,914 2,942
Current lease liabilities 314 332
Accrued income taxes 448 198
Total current liabilities 7,016 6,654
Fiduciary liabilities 10,530 9,622
Less - cash and cash equivalents held
in a fiduciary capacity (10,530 ) (9,622 )
-- --
Long-term debt 10,487 10,933
Pension, post-retirement and
post-employment benefits 1,407 1,632
Long-term lease liabilities 1,752 1,880
Liabilities for errors and omissions 340 355
Other liabilities 1,521 1,712
Total equity 10,917 11,222
TOTAL LIABILITIES AND EQUITY $ 33,440 $ 34,388
Marsh & McLennan Companies, Inc.
Consolidated Statements of Cash Flows
(Millions) (Unaudited)
Six Months Ended
June 30,
2022 2021
Operating cash flows:
Net income before non-controlling interests $2,064 $1,825
Adjustments to reconcile net income to cash
provided by operations:
Depreciation and amortization 348 390
Non-cash lease expense 152 158
Deconsolidation of Russian businesses 39 --
Share-based compensation expense 194 176
Net (gain) loss on investments, disposition of
assets and other (130 ) (66 )
Changes in assets and liabilities:
Accrued compensation and employee benefits (992 ) (630 )
Provision for taxes, net of payments and refunds 235 297
Net receivables (978 ) (626 )
Other changes to assets and liabilities 40 (415 )
Contributions to pension and other benefit plans
in excess of current year credit (226 ) (187 )
Operating lease liabilities (166 ) (172 )
Net cash provided by operations 580 750
Financing cash flows:
Purchase of treasury shares (1,100) (434 )
Net proceeds from issuance of commercial paper 944 --
Repayments of debt (8 ) (509 )
Net issuance of common stock from treasury
shares (115 ) (23 )
Net distributions of non-controlling interests
and deferred/contingent consideration (104 ) (47 )
Dividends paid (547 ) (478 )
Increase in fiduciary liabilities 1,428 1,277
Net cash provided by (used for) financing
activities 498 (214 )
Investing cash flows:
Capital expenditures (239 ) (151 )
Net purchase of long-term investments and other (3 ) (4 )
Dispositions 135 81
Acquisitions, net of cash and cash held in a
fiduciary capacity acquired (151 ) (350 )
Net cash used for investing activities (258 ) (424 )
Effect of exchange rate changes on cash, cash
equivalents, and cash and cash equivalents held
in a fiduciary capacity (755 ) 38
Increase in cash, cash equivalents, and cash and
cash equivalents held in a fiduciary capacity 65 150
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 $11,439 $10,824
Reconciliation of cash, cash equivalents, and cash and cash equivalents
held in a fiduciary capacity to the Consolidated Balance Sheets
Six Months Ended June 30, 2022 2021
(In millions)
Cash and cash equivalents $909 $888
Cash and cash equivalents held in a fiduciary capacity 10,530 9,936
Total cash, cash equivalents, and cash and cash
equivalents held in a fiduciary capacity $11,439 $10,824
Media:
Erick R. Gustafson
Marsh McLennan
+1 202 263 7788
erick.gustafson@mmc.com
Investor:
Sarah DeWitt
Marsh McLennan
+1 212 345 6750
sarah.dewitt@mmc.com
View source version on businesswire.com:
https://www.businesswire.com/news/home/20220720006022/en/
CONTACT:
Marsh & McLennan
SOURCE: Marsh & McLennan
Copyright Business Wire 2022
(END) Dow Jones Newswires
July 21, 2022 07:00 ET (11:00 GMT)
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