UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	Quarterly ~~report pursuant~~Report Pursuant to ~~section~~Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended~~September 30, 2017~~March 31, 2024


☐	Transition ~~report pursuant~~Report Pursuant to ~~section~~Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period fromto

Commission File Number:1-09761

ARTHUR J. GALLAGHER & CO.

(Exact name of registrant as specified in its charter)


Delaware		36-2151613
~~Delaware~~		~~36-2151613~~
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		~~(I.R.S. Employer~~ Identification No.)

2850 Golf Road, Rolling Meadows, Illinois60008

(Address of principal executive offices) (Zip Code)

(630) 773-3800

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.00 per share
~~2850 W. Golf Road, Rolling Meadows, Illinois 60008-4050~~
~~`(Address of principal executive offices) (Zip code)~~ AJG

~~(630)773-3800~~
~~(Registrant’s telephone number, including area code)~~

~~Not Applicable~~
~~(Former name, former address and former fiscal year, if changed since last report)~~ New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of RegulationS-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting ~~company”~~company,” and “emerging growth company” in Rule~~12b-2~~ 12b‑2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act). Yes ☐ No ☒

The number of outstanding shares of the registrant’s common stock, $1.00 par value, as of ~~September 30, 2017~~March 31, 2024 was approximately ~~180,799,000.~~218.5 million.

Information Concerning Forward-Looking Statements

This report contains certain statements related to future results, or states our intentions, beliefs and expectations or predictions for the future of Arthur J Gallagher & Co. and its subsidiaries, collectively referred to herein as we, our, us, Gallagher or the company, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward‑looking statements relate to expectations or forecasts of future events. Such statements use words such as “anticipate,” “believe,” “estimate,” “expect,” “contemplate,” “forecast,” “project,” “intend,” “plan,” “potential,” and other similar terms, and future or conditional tense verbs like “could,” “may,” “might,” “see,” “should,” “will” and “would.” You can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. For example, we may use forward-looking statements when addressing topics such as: the impact of general economic conditions, including significant inflation, interest rates and market uncertainty; the effects of geopolitical volatility, including repercussions from the war in Ukraine and the Middle East; market and industry conditions, including competitive and pricing trends; acquisition strategy including the expected size of our acquisition program; the expected impact of acquisitions and dispositions and integrating recent acquisitions, including comments regarding the expected benefits of our acquisition of the Willis Towers Watson plc treaty reinsurance brokerage operations (which we refer to as Willis Re), BCHR Holdings, L.P., and its subsidiaries, dba Buck (which we refer to as Buck), Cadence Insurance, Inc. (which we refer to as Cadence Insurance), Eastern Insurance Group, LLC (which we refer to as Eastern Insurance), My Plan Manager Group Pty Ltd (which we refer to as My Plan Manager), and other acquisitions larger than our typical tuck-in acquisitions and the expected duration and costs of integrating such large acquisitions; the development and performance of our services and products; changes in the composition or level of our revenues or earnings; our cost structure and the size and outcome of cost-saving or restructuring initiatives; future capital expenditures; future debt levels and anticipated actions to be taken in connection with maturing debt; future debt to earnings ratios; the outcome of contingencies; dividend policy; pension obligations; cash flow and liquidity; capital structure and financial losses; future actions by regulators; the outcome of existing regulatory actions, audits, reviews or litigation; the impact of changes in accounting rules; financial markets; interest rates; foreign exchange rates; matters relating to our operations; income taxes; expectations regarding our investments, human capital management, including diversity and inclusion initiatives; and environmental, social and governance matters, including climate-resilience and climate-advising products and services and carbon emissions. These forward‑looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors.

Potential factors that could impact results include:

•

Global economic and geopolitical events, such as high inflation and related monetary policy responses including increased interest rates; a recession or economic downturn, failures of financial institutions and other counterparties or a potential United States (U.S.) government shutdown or gridlock over increasing the U.S. debt ceiling; political violence, and instability, including geo-economic fragmentation;

•

Economic conditions that result in financial difficulties for underwriting enterprises or lead to reduced risk-taking capital capacity, for example, as a result of large payouts related to extreme weather events, or to the failure of such enterprises, including the increased risk of errors and omissions (which we refer to as E&O) claims against us;

•

Risks that could negatively affect the success of our acquisition strategy, including the impact of current economic uncertainty on our ability to source, review and price acquisitions; continuing consolidation in our industry and interest in acquiring insurance brokers on the part of private equity firms and newly public insurance brokers, which makes it more difficult to identify targets and in some cases makes them more expensive; inaccurate assumptions and failure to realize expected benefits; the risk that we may not receive timely regulatory approval of pending transactions; closing risks; execution risks; integration risks; poor cultural fit; the risk of post-acquisition deterioration leading to intangible asset impairment charges; and the risk we could incur or assume unanticipated liabilities such as cybersecurity issues or those relating to violations of anti-corruption and sanctions laws;

•

Risks related to Willis Re, Buck, Cadence Insurance, Eastern Insurance, My Plan Manager and other acquisitions larger than our usual tuck-in acquisitions, including risks related to our ability to successfully integrate operations, the possibility that our assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize the expected benefits of these acquisitions;

•

Damage to our reputation, including as a result of environmental, social and governance (which we refer to as ESG) matters, and the potential for the Internet and social media to magnify the effects of such reputational issues;

•

Failure to meet our sustainability and ESG-related aspirations, goals and initiatives or to comply with increasingly complex climate-related regulations including increased risks related to “greenwashing”;

•

Failure to apply technology, data analytics and artificial intelligence effectively in driving value for our clients through technology-based solutions, or failure to gain internal efficiencies and effective internal controls through the application of technology and related tools;

- 2 -

•

Risks associated with the use of artificial intelligence (which we refer to as AI) in our business operations, including regulatory, data privacy, cybersecurity, E&O and competition risks;

•

Failure to attract and retain experienced and qualified talent, including our senior management team, or adequately plan and execute for the succession of such leaders; increased costs resulting from increased compensation and benefits packages as a result of a tighter labor market, and negative effects from restrictions on non-competes at the state and federal level;

•

Substantial increase in remote work among our employees, which may affect our corporate culture, productivity, collaboration and effective communication, increase cybersecurity or data breaches risks, heighten vulnerability to solicitations by competing firms and impact our ability to recruit and retain employees that prefer fully remote or fully in person work environments;

•

A disaster or other significant disruption to business continuity for our own operations or those of third-parties on which we rely, including cybersecurity incidents; natural disasters; political violence and unrest in the U.S. or elsewhere around the world; for example, our substantial operations in India could be negatively impacted as a result of the dispute between India and Pakistan involving the Kashmir region, rising tensions between India and China, incidents of terrorism in India, civil unrest or other reasons;

•

Sustained increases in the cost of employee benefits and compensation expense;

•

Risks arising from our international operations and changes in international conditions, including the risks posed by political and economic uncertainty in certain countries (including repercussions from the wars in Ukraine and the Middle East), maintaining regulatory and legal compliance across multiple jurisdictions (such as those relating to violations of anti‑corruption, sanctions, and privacy laws, increasingly complex regulatory requirements related to climate change and sustainability issues and increased protectionism), tariffs, trade wars, climate change and other long-term environmental, social and governance matters and global health risks;

•

Risks related to changes in U.S. or foreign tax laws, including a U.S. or foreign tax rate change, potential changes in guidance related to the U.S. Inflation Reduction Act, the Organisation for Economic Co-operation and Development’s (OECD) global minimum corporate tax regime, and other local policy changes;

•

Competitive pressures, including as a result of innovation, in each of our businesses;

•

Volatility or declines in premiums or other adverse trends in the insurance industry;

•

The higher level of variability inherent in contingent and supplemental revenues versus standard commission revenues;

•

Risks particular to our benefit consulting operations, including risks related to the acquisition of Buck;

•

Risks particular to our third-party claims administrations operations, including risks related to the availability of RISX‑FACS®, our proprietary risk management information system, wage inflation, staffing shortages, any slowing of the trend toward outsourcing claims administration, and the concentration of large amounts of revenue with certain clients;

•

Climate risks, including the risk of a systemic economic crisis and disruptions to our business caused by the transition to a low-carbon economy;

•

Cyber-attacks or other cybersecurity incidents and the heightened risk of such attacks as a result of the wars in Ukraine and the Middle East; improper disclosure of confidential, personal or proprietary data and changes to laws and regulations governing cybersecurity and data privacy;

•

Unfavorable determinations related to contingencies and legal proceedings;

•

Violations or alleged violations of the U.S. Foreign Corrupt Practices Act (which we refer to as FCPA), the United Kingdom (U.K.) Bribery Act 2010 or other anti-corruption laws and the Foreign Account Tax Compliance provisions of the Hiring Incentives to Restore Employment Act, and the outcome of any existing or future investigation, review, regulatory action or litigation;

•

Failure to comply with regulatory requirements, including those related to governance and control requirements in particular jurisdictions, international sanctions, including new sanctions laws as a result of the wars in Ukraine and the Middle East; laws relating to the disclosure of ESG-related matters; laws relating to the use of AI, or a change in regulations or enforcement policies that adversely affects our operations (for example, relating to insurance broker compensation methods or restrictions on non-competes);

•

Changes to our financial presentation from new accounting estimates and assumptions;

- 3 -

•

Intellectual property risks;

•

Risks related to our legacy clean energy investments, including intellectual property claims, environmental and product liability claims, environmental compliance costs and the risk of disallowance by the Internal Revenue Service of previously claimed tax credits;

•

The risk that our outstanding debt adversely affects our financial flexibility and restrictions and limitations in the agreements and instruments governing our debt;

•

The risk of credit rating downgrades;

•

The risk we may not be able to receive dividends or other distributions from subsidiaries, including the effects of significant changes in foreign exchange rates;

•

The risk of share ownership dilution when we issue common stock; and

•

Volatility of the price of our common stock.

Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions, including the risk factors referred to above. Our future performance and actual results or outcomes may differ materially from those expressed in forward-looking statements. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of, and are based on information available to us on, the date of the applicable document. Many of the factors that will determine these results are beyond our ability to control or predict. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Forward-looking statements speak only as of the date that they are made, and we do not undertake any obligation to update any such statements or release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this report or to reflect new information, future or unexpected events or otherwise, except as required by applicable law or regulation. In addition, historical, current and forward-looking sustainability-related or ESG-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.

A detailed discussion of the factors that could cause actual results to differ materially from our published expectations is contained under the heading “Risk Factors” in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, this Quarterly Report on Form 10-Q and any other reports we file with the SEC in the future.

- 4 -

Arthur J. Gallagher & Co.

Index


								Page No.
Part I.	Financial Information					~~Page No.~~

~~Part I.~~		~~Financial Information~~

		Item 1.		Financial Statements (Unaudited):

				Consolidated Statement of Earnings for the Three-month ~~and Nine-month~~ Periods Ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023		3	6

				Consolidated Statement of Comprehensive Earnings for the Three-month ~~and Nine-month~~ Periods Ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023		4	7

				Consolidated Balance Sheet at ~~September 30, 2017~~March 31, 2024 and December 31, ~~2016~~2023		5	8

				Consolidated Statement of Cash Flows for the ~~Nine-month~~Three-month Periods Ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023		6	9

				Consolidated Statement of Stockholders’ Equity for the ~~Nine-month Period~~Three-month Periods Ended ~~September 30, 2017~~March 31, 2024 and 2023		7	10-11

				Notes to ~~September 30, 2017~~March 31, 2024 Consolidated Financial Statements		~~8-29~~	12-32

				~~Report of Independent Registered Public Accounting Firm~~		30

		Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		~~31-60~~	33-56

		Item 3.		Quantitative and Qualitative Disclosures About Market Risk		~~60-62~~	56-57

		Item 4.		Controls and Procedures		62	57-58

Part II.			Other Information

		Item 1.		Legal Proceedings		62	58

		Item 1A.	Risk Factors.	~~Risk Factors.~~		62	58

		Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds		63	58-59

	Item 6.	~~Item 5.~~ Exhibits		~~Other Information~~		64	59

	Signature		~~Item 6.~~		~~Exhibits~~		64

		~~Signature~~				65	60

- 25 -

Part I - Financial Information

Item 1. Financial Statements (Unaudited)

~~Item 1.~~

~~Financial Statements (Unaudited)~~

Arthur J. Gallagher & Co.

Consolidated Statement of Earnings

(Unaudited - in millions, except per share data)


													Three-month period ended
	Three-month period ended September 30,						Nine-month period ended September 30,						March 31,
	2017			2016			2017			2016			2024			2023
Commissions	$	662.6		$	612.9		$	1,943.3		$	1,842.3		$	1,993.6		$	1,747.4
Fees		422.4			375.0			1,203.8			1,087.8			951.2			705.7
Supplemental commissions		39.9			35.3			115.9			106.8
Contingent commissions		13.5			16.4			96.4			96.7
Investment income		14.9			13.6			39.3			36.4
Gains on books of business sales		0.6			1.1			3.1			4.7
Revenues from clean coal activities		430.6			429.3			1,158.8			1,036.0
Other net losses		—			(1.3	)		—			(0.9	)


Supplemental revenues														93.9			81.6
Contingent revenues														86.0			71.8
Interest income, premium finance revenues and other income														93.4			66.4
Revenues before reimbursements														3,218.1			2,672.9
Reimbursements														38.6			33.2
Total revenues		1,584.5			1,482.3			4,560.6			4,209.8			3,256.7			2,706.1


Compensation		680.1			626.6			2,013.4			1,879.7			1,725.9			1,415.5
Operating		214.2			189.6			626.2			598.7			435.7			382.5
Cost of revenues from clean coal activities		451.4			449.7			1,215.4			1,079.1
Reimbursements														38.6			33.2
Interest		31.4			28.5			92.9			81.5			92.2			67.9
Depreciation		30.5			25.7			90.2			76.4			45.4			37.7
Amortization		69.6			63.2			199.0			185.1			162.3			121.7
Change in estimated acquisition earnout payables		10.6			4.1			27.5			21.2			(16.1	)		41.8


Total expenses		1,487.8			1,387.4			4,264.6			3,921.7			2,484.0			2,100.3


Earnings before income taxes		96.7			94.9			296.0			288.1			772.7			605.8
Benefit for income taxes		(41.1	)		(35.5	)		(90.0	)		(55.9	)

Provision for income taxes														160.0			119.2
Net earnings		137.8			130.4			386.0			344.0			612.7			486.6
Net earnings attributable to noncontrolling interests		7.4			7.6			28.0			24.7			4.3			0.1

Net earnings attributable to controlling interests	$	130.4		$	122.8		$	358.0		$	319.3		$	608.4		$	486.5


Basic net earnings per share	$	0.72		$	0.69		$	1.99		$	1.80		$	2.80		$	2.29

Diluted net earnings per share		0.71			0.69			1.97			1.79			2.74			2.24

Dividends declared per common share		0.39			0.38			1.17			1.14			0.60			0.55

See notes to consolidated financial statements.

- 36 -

Arthur J. Gallagher & Co.

Consolidated Statement of Comprehensive Earnings

(Unaudited - in millions)

   Three-month period ended
September 30, Nine-month period ended
September 30,
   2017    2016 2017    2016
Net earnings
   $ 137.8    $ 130.4 $ 386.0    $ 344.0
Change in pension liability, net of taxes
   1.1    0.8 3.7    4.4
Foreign currency translation
   157.4    (19.6 ) 249.7    (91.4 )
Change in fair value of derivative investments, net of taxes
   2.9    1.8 11.7    (11.0 )






Comprehensive earnings
   299.2    113.4 651.1    246.0
Comprehensive earnings attributable to noncontrolling interests
   5.8    6.6 28.4    28.9






Comprehensive earnings attributable to controlling interests
   $ 293.4    $ 106.8 $ 622.7    $ 217.1


	Three-month period ended
	March 31,
	2024			2023
Net earnings	$	612.7		$	486.6
Change in pension liability, net of taxes		0.3			0.8
Foreign currency translation, net of taxes		(155.8	)		33.3
Change in fair value of derivative investments, net of taxes		(1.4	)		4.9
Comprehensive earnings		455.8			525.6
Comprehensive earnings attributable to noncontrolling interests		4.3			—
Comprehensive earnings attributable to controlling interests	$	451.5		$	525.6

See notes to consolidated financial statements.

- 47 -

Arthur J. Gallagher & Co.

Consolidated Balance Sheet

(InUnaudited - in millions)


	September 30, 2017			December 31, 2016
	(Unaudited)						March 31, 2024			December 31, 2023
Cash and cash equivalents	$	564.9		$	545.5		$	1,762.6		$	971.5
Restricted cash		1,615.6			1,392.1
Premiums and fees receivable		2,227.3			1,844.8
Fiduciary assets								35,156.1			26,907.9
Accounts receivable, net								4,148.7			3,786.6
Other current assets		679.6			633.7			412.1			450.1


Total current assets		5,087.4			4,416.1			41,479.5			32,116.1

Fixed assets - net		413.4			377.6			704.8			726.4
Deferred income taxes		918.4			796.5
Deferred income taxes (includes tax credit carryforwards of $821.3 in 2024 and $867.4 in 2023)								1,054.9			1,132.3
Other noncurrent assets		559.6			504.3			1,197.0			1,131.8
Goodwill - net		4,160.4			3,767.8
Right-of-use assets								385.9			400.3
Goodwill								11,532.1			11,475.6
Amortizable intangible assets - net		1,671.2			1,627.3			4,621.7			4,633.3


Total assets	$	12,810.4		$	11,489.6		$	60,975.9		$	51,615.8


Premiums payable to insurance and reinsurance companies	$	3,508.5		$	2,996.1
Accrued compensation and other accrued liabilities		768.1			772.1
Unearned fees		85.4			69.0
Other current liabilities		61.8			70.9
Fiduciary liabilities							$	35,156.1		$	26,907.9
Accrued compensation and other current liabilities								3,467.3			2,553.1
Deferred revenue - current								720.6			644.7
Premium financing debt		156.4			125.6			184.3			289.0
Corporate related borrowings - current		125.0			578.0			108.2			670.0


Total current liabilities		4,705.2			4,611.7			39,636.5			31,064.7

Corporate related borrowings - noncurrent		2,741.7			2,144.6			7,989.6			7,006.0
Deferred revenue - noncurrent								64.7			61.5
Lease liabilities - noncurrent								338.0			352.2
Other noncurrent liabilities		1,191.3			1,077.5			1,602.9			2,316.1


Total liabilities		8,638.2			7,833.8			49,631.7			40,800.5


Stockholders’ equity:
Common stock - issued and outstanding 180.8 shares in 2017 and 178.3 shares in 2016		180.8			178.3
Stockholders' equity:
Common stock - issued and outstanding 218.5 shares in 2024 and 216.7 shares in 2023								218.5			216.7
Capital in excess of par value		3,366.0			3,265.5			7,502.0			7,297.8
Retained earnings		1,062.1			916.4			4,529.3			4,052.9
Accumulated other comprehensive loss		(498.9	)		(763.6	)		(949.0	)		(792.1	)


Stockholders’ equity attributable to controlling interests		4,110.0			3,596.6
Stockholders’ equity attributable to noncontrolling interests		62.2			59.2


Total stockholders’ equity		4,172.2			3,655.8


Total liabilities and stockholders’ equity	$	12,810.4		$	11,489.6

Stockholders' equity attributable to controlling interests								11,300.8			10,775.3
Stockholders' equity attributable to noncontrolling interests								43.4			40.0
Total stockholders' equity								11,344.2			10,815.3
Total liabilities and stockholders' equity							$	60,975.9		$	51,615.8

See notes to consolidated financial statements.

- 58 -

Arthur J. Gallagher & Co.

Consolidated Statement of Cash Flows

(Unaudited - in millions)


							Three-month period ended
	Nine-month period ended September 30,						March 31,
	2017			2016			2024			2023
Cash flows from operating activities:
Net earnings	$	386.0		$	344.0		$	612.7		$	486.6
Adjustments to reconcile net earnings to net cash provided by operating activities:
Net gain on investments and other		(1.8	)		(4.6	)
Depreciation and amortization		289.2			261.5			207.7			159.4
Change in estimated acquisition earnout payables		27.5			21.2			(16.1	)		41.8
Amortization of deferred compensation and restricted stock		25.4			21.6			27.2			22.9
Stock-based and other noncash compensation expense		12.9			10.9			11.1			3.8
Payments on acquisition earnouts in excess of original estimates		(23.1	)		(19.5	)		(10.9	)		(35.3	)
Provision for deferred income taxes								55.7			31.9
Effect of changes in foreign exchange rates		4.3			1.0			(1.1	)		0.3
Net change in restricted cash		(134.1	)		(21.1	)
Net change in premiums receivable		(261.6	)		(26.7	)
Net change in premiums payable		198.7			88.4
Net change in accounts receivable, net								(471.9	)		(642.2	)
Net change in deferred revenue								80.1			74.7
Net change in other current assets		(25.0	)		(28.6	)		(8.7	)		17.3
Net change in accrued compensation and other accrued liabilities		(30.7	)		(72.1	)		344.0			298.1
Net change in fees receivable/unearned fees		6.2			12.3
Net change in income taxes payable		(0.8	)		5.4			(3.3	)		21.0
Net change in deferred income taxes		(133.2	)		(123.6	)
Net change in other noncurrent assets and liabilities		(11.6	)		(53.8	)		(37.2	)		(51.8	)
Unrealized foreign currency remeasurement gain (loss)		130.8			(47.4	)

Net cash provided by operating activities		459.1			368.9			789.3			428.5

Cash flows from investing activities:
Capital expenditures		(93.8	)		(138.8	)		(29.7	)		(29.7	)
Cash paid for acquisitions, net of cash acquired		(320.5	)		(147.0	)
Cash paid for acquisitions, net of cash and restricted cash acquired								(251.2	)		(311.4	)
Net proceeds from sales of operations/books of business		2.9			7.3			0.1			0.1
Net funding of investment transactions		(8.6	)		(22.3	)		0.1			0.4

Net funding of premium finance loans								88.8			84.0
Net cash used by investing activities		(420.0	)		(300.8	)		(191.9	)		(256.6	)

Cash flows from financing activities:
Payments on acquisition earnouts		(30.3	)		(41.7	)		(45.1	)		(66.6	)
Proceeds from issuance of common stock		50.2			36.8			52.0			30.3
Tax impact from issuance of common stock		—			4.8
Repurchases of common stock		—			(101.0	)
Payments to noncontrolling interests		(26.2	)		(32.8	)		(3.1	)		(0.7	)
Dividends paid		(211.6	)		(204.3	)		(130.7	)		(117.4	)
Net change in fiduciary assets and liabilities								(205.8	)		311.8
Net borrowings on premium financing debt facility		18.0			(10.9	)		(92.4	)		(83.7	)
Borrowings on line of credit facility		3,223.0			1,619.5			1,078.2			605.0
Repayments on line of credit facility		(3,426.0	)		(1,556.5	)		(1,215.0	)		(665.0	)
Net borrowings of corporate related long-term debt		348.0			276.0			567.2			893.7
Debt acquisition costs								(9.3	)		(9.3	)
Settlements on terminated interest rate swaps		8.3			—			(1.4	)		60.0

Net cash used by financing activities		(46.6	)		(10.1	)

Effect of changes in foreign exchange rates on cash and cash equivalents		26.9			(6.6	)

Net increase in cash and cash equivalents		19.4			51.4
Cash and cash equivalents at beginning of period		545.5			480.4

Cash and cash equivalents at end of period	$	564.9		$	531.8

Supplemental disclosures of cash flow information:
Interest paid	$	90.3		$	82.5
Income taxes paid		49.0			52.2
Net cash (used) provided by financing activities								(5.4	)		958.1
Effect of changes in foreign exchange rates on cash, cash equivalents, restricted cash and fiduciary cash								(54.5	)		(3.2	)
Net increase in cash, cash equivalents, restricted cash and fiduciary cash								537.5			1,126.8
Cash, cash equivalents, restricted cash and fiduciary cash at beginning of period								6,543.3			4,964.2
Cash, cash equivalents, restricted cash and fiduciary cash at end of period							$	7,080.8		$	6,091.0

See notes to consolidated financial statements.

- 69 -

Arthur J. Gallagher & Co.

Consolidated Statement of Stockholders’ Equity

(Unaudited - in millions)

   Accumulated
         Capital in Other
   Common Stock    Excess of
Par Value Retained
Earnings Comprehensive
Earnings (Loss) Noncontrolling
Interests Total
   Shares    Amount
Balance at December 31, 2016
   178.3    $ 178.3    $ 3,265.5 $ 916.4 $ (763.6 ) $ 59.2 $ 3,655.8
Net earnings
   —      —      —   358.0 —   28.0 386.0
Purchase of subsidiary shares from noncontrolling interests
   —      —      —   —   —   (0.8 ) (0.8 )
Dividends paid to noncontrolling interests
   —      —      —   —   —   (24.6 ) (24.6 )
Change in pension liability, net of taxes of $2.5 million
   —      —      —   —   3.7 —   3.7
Foreign currency translation
   —      —      —   —   249.3 0.4 249.7
Change in fair value of derivative instruments, net of taxes of $2.3 million
   —      —      —   —   11.7 —   11.7
Compensation expense related to stock option plan grants
   —      —      12.9 —   —   —   12.9
Common stock issued in:

Ten purchase transactions
   0.7    0.7    42.5 —   —   —   43.2
Stock option plans
   1.2    1.2    33.9 —   —   —   35.1
Employee stock purchase plan
   0.3    0.3    14.8 —   —   —   15.1
Deferred compensation and restricted stock
   0.3    0.3    (3.6 ) —   —   —   (3.3 )
Cash dividends declared on common stock
   —      —      —   (212.3 ) —   —   (212.3 )






Balance at September 30, 2017
   180.8    $ 180.8    $ 3,366.0 $ 1,062.1 $ (498.9 ) $ 62.2 $ 4,172.2


											Accumulated
					Capital in						Other
	Common Stock				Excess of			Retained			Comprehensive			Noncontrolling
	Shares		Amount		Par Value			Earnings			Loss			Interests			Total
Balance at December 31, 2023		216.7	$	216.7	$	7,297.8		$	4,052.9		$	(792.1	)	$	40.0		$	10,815.3
Net earnings		—		—		—			608.4			—			4.3			612.7
Net purchase of subsidiary shares from noncontrolling interests		—		—		—			—			—			(0.3	)		(0.3	)
Dividends paid to noncontrolling interests		—		—		—			—			—			(0.6	)		(0.6	)
Net change in pension asset/ liability, net of taxes of $0.1 million		—		—		—			—			0.3			—			0.3
Foreign currency translation		—		—		—			—			(155.8	)		—			(155.8	)
Change in fair value of derivative instruments, net of taxes of $(0.4) million		—		—		—			—			(1.4	)		—			(1.4	)
Compensation expense related to stock option plan grants		—		—		15.1			—			—			—			15.1
Common stock issued in:
Seven purchase transactions		0.4		0.4		87.9			—			—			—			88.3
Stock option plans		0.6		0.6		39.3			—			—			—			39.9
Employee stock purchase plan		0.1		0.1		12.1			—			—			—			12.2
Shares issued to benefit plans		0.4		0.4		98.1			—			—			—			98.5
Deferred compensation and restricted stock		0.3		0.3		(48.3	)		—			—			—			(48.0	)
Cash dividends declared on common stock		—		—		—			(132.0	)		—			—			(132.0	)
Balance at March 31, 2024		218.5	$	218.5	$	7,502.0		$	4,529.3		$	(949.0	)	$	43.4		$	11,344.2

See notes to consolidated financial statements.

- 710 -

Arthur J. Gallagher & Co.
Consolidated Statement of Stockholders’ Equity
(Unaudited - in millions)


											Accumulated
					Capital in						Other
	Common Stock				Excess of			Retained			Comprehensive			Noncontrolling
	Shares		Amount		Par Value			Earnings			Loss			Interests			Total
Balance at December 31, 2022		211.9	$	211.9	$	6,509.9		$	3,562.2		$	(1,140.4	)	$	46.6		$	9,190.2
Net earnings		—		—		—			486.5			—			0.1			486.6
Net purchase of subsidiary shares from noncontrolling interests		—		—		—			—			—			(5.4	)		(5.4	)
Dividends paid to noncontrolling interests		—		—		—			—			—			(0.7	)		(0.7	)
Net change in pension asset/ liability, net of taxes of $0.2 million		—		—		—			—			0.8			—			0.8
Foreign currency translation		—		—		—			—			33.3			(0.1	)		33.2
Change in fair value of derivative instruments, net of taxes of $1.3 million		—		—		—			—			4.9			—			4.9
Compensation expense related to stock option plan grants		—		—		7.7			—			—			—			7.7
Common stock issued in:
Four purchase transactions		1.0		1.0		185.5			—			—			—			186.5
Stock option plans		0.5		0.5		20.7			—			—			—			21.2
Employee stock purchase plan		0.1		0.1		9.0			—			—			—			9.1
Shares issued to benefit plans		0.4		0.4		84.2			—			—			—			84.6
Deferred compensation and restricted stock		0.3		0.3		(42.2	)		—			—			—			(41.9	)
Cash dividends declared on common stock		—		—		—			(118.5	)		—			—			(118.5	)
Balance at March 31, 2023		214.2	$	214.2	$	6,774.8		$	3,930.2		$	(1,101.4	)	$	40.5		$	9,858.3

See notes to consolidated financial statements.

- 11 -

Notes to ~~September 30, 2017~~March 31, 2024 Consolidated Financial Statements (Unaudited)

1. Summary of Significant Accounting Policies

Terms Used in Notes to Consolidated Financial Statements ~~(Unaudited)~~

ASC - Accounting Standards Codification.

~~Nature of Operations and Basis of Presentation~~

ASU - Accounting Standards Update.

FASB - The Financial Accounting Standards Board.

GAAP -U.S. generally accepted accounting principles.

IRC - Internal Revenue Code.

IRS - Internal Revenue Service.

Underwriting enterprises - Insurance companies, reinsurance companies and various other forms of risk-taking entities, including intermediaries of underwriting enterprises.

Nature of Operations and Basis of Presentation

Arthur J. Gallagher & Co. and its subsidiaries, collectively referred to herein as we, our, us, Gallagher or the company, provide insurance and reinsurance brokerage, consulting and third party claims settlement and administration services to both domestic and international entities. We have three reportable segments: brokerage, risk management and corporate. Our brokers, agents and administrators act as intermediaries between underwriting enterprises and our clients.

Our brokerage segment operations provide brokerage and consulting services to entities of all types, including commercial, nonprofit, public sector entities, and, to a lesser extent, individuals, in the areas of insurance and reinsurance placements, risk of loss management, and management of employer sponsored benefit programs. Our risk management segment operations provide contract claim settlement, claim administration, loss control services and risk management consulting for commercial, nonprofit, captive and public sector entities, and various other organizations that choose to self-insure property/casualty coverages or choose to use a third‑party claims management organization rather than the claim services ~~to a wide variety of commercial, industrial, institutional and governmental organizations through three reportable segments. Commission and fee revenue generated~~provided by underwriting enterprises. The corporate segment reports the ~~brokerage segment is primarily~~financial information related to ~~the negotiation and placement of insurance for~~ our clients. Fee revenue generated by the risk management segment is primarily related to claims management, information management, risk control consulting (loss control) services and appraisals in the property/casualty market. Investment incomedebt and other ~~revenue~~corporate costs, clean energy investments, external acquisition‑related expenses and the impact of foreign currency translation.

We do not assume insurance underwriting risk on a net basis, other than with respect to de minimis amounts necessary to provide minimum or regulatory capital to organize captives, pools, specialized underwriters or risk-retention groups. Rather, capital necessary for covering losses is provided by underwriting enterprises.

Interest income, premium finance revenues and other income are primarily generated from our premium financing operations, ~~and~~ our ~~investment portfolio, which includes~~ invested cash and restricted ~~funds,~~cash we hold on behalf of our clients, as well as clean energy ~~and~~investments. In addition, our share of the net earnings related to partially owned entities that are accounted for using the equity method is included in other ~~investments.~~ income.

We are a global insurance brokerage, risk management and consulting services firm, headquartered in Rolling Meadows, ~~Illinois, have~~Illinois. We provide these services in approximately 130 countries around the world through our owned operations ~~in 34 countries~~ and ~~offer client-service capabilities in more than 150 countries globally through~~ a network of correspondent ~~insurance~~ brokers and ~~consultants.~~

Weconsultants.We have prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the ~~Securities and Exchange Commission.~~SEC. Certain information and footnote disclosures normally included in annual financial statements have been omitted pursuant to such rules and regulations. The unaudited consolidated financial statements included herein are, in the opinion of management, prepared on a basis consistent with our audited consolidated financial statements for the year ended December 31, ~~2016, except as disclosed in Note 2,~~2023, and include all normal recurring adjustments necessary for a fair presentation of the information set forth. The quarterly results of operations are not necessarily indicative of the results of operations to be reported for subsequent quarters or the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form10-K for the year ended December 31, ~~2016.~~2023. In the preparation of our unaudited consolidated financial statements as of ~~September 30, 2017,~~March 31, 2024, management evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued, for potential recognition and/or disclosure therein.

- 12 -

Use of Estimates

~~Effect of New Accounting Pronouncements~~

~~Hedge Accounting~~

~~In August 2017,~~The preparation of our unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the ~~Financial Accounting Standards Board (which we refer to as the FASB) issued Accounting Standards Update (which we refer to as ASU)No. 2017-12,~~ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The new guidance amends the hedge accounting model in the current guidance to enable entities to better portray the economics of their risk management activitiesamounts reported in the financial statements and accompanying notes. These accounting principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenues and expenses, and the disclosure of contingent assets and liabilities at the date of our unaudited consolidated financial statements. We periodically evaluate our estimates and assumptions, including those relating to the valuation of goodwill and other intangible assets, right-of-use assets, investments, income taxes, revenue recognition, deferred costs, stock-based compensation, claims handling obligations, retirement plans, litigation and contingencies. We base our estimates on historical experience and various assumptions that we believe to be reasonable based on specific circumstances. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed in the notes herein.

- 13 -

2. Effect of New Accounting Pronouncements

Segment Reporting

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires that an entity report segment information in accordance with Topic 280, Segment Reporting. The amendment in the ASU is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact of the new standard on our consolidated financial statements which is expected to result in enhanced disclosures.

Income Taxes

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The amendment in the ASU is intended to enhance the transparency and ~~understandability~~decision usefulness of ~~hedge results.~~income tax disclosures. The new guidance requires revised tabular disclosures that focus on the effect of hedge accounting by income statement line and the disclosure of the cumulative basis adjustments to the hedged assets and liabilitiesamendments in ~~fair value hedges. Certain additional disclosures~~this update are ~~also required for hedge relationships designated under thelast-of-layer~~ method. The current guidance that requires entities to disclose hedge ineffectiveness has been eliminated because this amount will no longer be separately measured. Under the new guidance, entities will apply the amendments to cash flow and net investment hedge relationships that exist on the date of adoption using a modified retrospective approach (i.e., with a cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date). The new guidance also provides transition relief to make it easier for entities to apply certain amendments to existing hedges (including fair value hedges) where the hedge documentation needs to be modified. The presentation and disclosure requirements will be applied prospectively. The new guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those periods. Early adoption is permitted in any interim period or annual year before the effective date. If the guidance is early adopted in an interim period, any adjustments would be reflected as of the beginning of the fiscal year that includes that interim period.2024. We are currently ~~assessing~~evaluating the impact ~~that adopting this~~of the new ~~guidance will have on our consolidated financial statements.~~

~~Business Combinations~~

~~In January 2017, the FASB issued ASUNo. 2017-01,~~ Business Combinations (Topic 805) Clarifying the Definition of a Business. The new guidance clarifies the definition of a business with the objective of adding information to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. Management does not anticipate that this new guidance will have a material impactstandard on our consolidated financial statements ~~upon adoption.~~

which is expected to result in enhanced disclosures.

Climate Risk Disclosures

~~- 8 -~~

~~Intangibles - Goodwill and Other~~

~~In January 2017, the FASB issued ASUNo. 2017-04,~~ Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new guidance eliminates Step 2 of the goodwill impairment test. Instead, the updated guidance requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of the reporting unit to its carrying value, and recognizing a~~non-cash~~ impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value with the loss not exceeding the total amount of goodwill allocated to that reporting unit. The new guidance is effective beginning January 1, 2020, with early adoption permitted, and will be applied on a prospective basis. The new guidance currently has no impact on our consolidated financial statements; however, we will evaluate the impact of this updated guidance on future annual or interim goodwill impairment tests performed.

~~Leases~~

~~In February 2016, the FASB issued ASU No.2016-02,~~ ~~Leases (Topic 842). Under this new accounting guidance, an entity is required to recognizeright-of-use~~ assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This new guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This new guidance is effective for first quarter 2019, and requires a modified retrospective adoption, with early adoption permitted. Under the modified retrospective approach, lessees are required to recognize and measure leases at the beginning of the earliest period presented. In addition, the modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset.

While we are continuing to assess all potential impacts of the new guidance, we anticipate this guidance will have an impact on our consolidated financial statements. We currently believe the most significant impact relates to our real estate operating leases and the related recognition of~~right-of-use~~ assets and lease liabilities in both noncurrent assets and noncurrent liabilities in our consolidated balance sheet. See Note 13 to these unaudited consolidated financial statements for details on our current lease arrangements.

~~Stock Compensation~~

~~In May 2017 the FASB issued ASU No.2017-09,~~ ~~Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (ASU2017-09).~~ ~~This new accounting guidance provides information about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU2017-09~~ is effective for financial statements issued for annual reporting periods beginning after December 15, 2017 and interim periods within those years. Earlier application is permitted. We do not expect that the adoption of this new guidance will have a material impact on our consolidated financial statements as we historically have not made changes to the terms or conditions of an outstanding share-based payment award.

In March ~~2016,~~2024, the ~~FASB~~SEC issued ~~ASUNo. 2016-09,~~ ~~Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, (ASU2016-09).~~ ~~This new accounting guidance requires~~final climate-related disclosure rules that companies recognize the income tax effects of awards in the income statement when the awards vest or are settled, rather than recognizing the tax benefits in excess of compensation costs through stockholders’ equity. ASU~~2016-09~~ provides that this requirement be applied prospectively. As it relates to forfeitures, the guidance allows for companies to choose whether to continue to estimate forfeitures or account for forfeitures as they occur. This new guidance was effective in first quarter 2017 and has been applied by us. Due to the adoption of the new guidance, we recognized the income tax benefit of stock based awards that vested or were settled in the three-month and nine-month periods ended September 30, 2017 of $1.8 million and $11.9 million, respectively, in our consolidated statement of earnings. The income tax benefit of stock based awards that vested or were settled in the three-month and nine-month periods ended September 30, 2016 were $1.7 million and $4.8 million, respectively, that was recognized in our consolidated stockholders’ equity. Additionally, our consolidated statement of cash flows now presents excess tax benefits as an operating activity, rather than as a financing activity, applied prospectively. Finally, we elected to continue to estimate forfeitures based on historical data and recognize forfeitures over the vesting period of the award.

~~- 9 -~~

~~Cash Receipts and Cash Payments~~

~~In August 2016, the FASB issued ASU No.2016-15,~~ ~~Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, (ASU2016-15).~~ ~~The amendments in ASU2016-15~~ address several specific cash flow issues and apply to all entities that are required to present a statement of cash flows under ASC 230, Statement of Cash Flows. This new guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. We early adopted this guidance in first quarter 2017.

The adoption of this guidance resulted in a change to our classification whereby contingent payments on acquisitions that are up to the acquisition date fair value have been presented in financing activities and those payments in excess of the acquisition date fair value have been presented in operating activities. Historically these payments have all been included in investing activities. Accordingly, in our September 30, 2016 consolidated statement of cash flows, we reclassified $19.5 million and $41.7 million of payments from investing activities to operating activities and financing activities, respectively, to conform to the current year presentation. The modifications can be seen in our statement of cash flows.

~~Income Taxes~~

~~In October 2016, the FASB issued ASU No.2016-16,~~ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This new accounting guidance allows entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Current guidance does not allow recognition until the asset has been sold to an outside party. This new guidance is effective beginning January 1, 2018 and is to be applied on a modified retrospective basis. Early adoption is permitted. Management does not anticipate that this new guidance will have a material impact on our consolidated financial statements upon adoption.

~~Restricted Cash~~

~~In November 2016, the FASB issued ASU No.2016-18,~~ Statement of Cash Flows (Topic 230): Restricted Cash. This new accounting guidance addresses the classification and presentation of changes in restricted cash on the statement of cash flows under Topic 230, Statement of Cash Flows. This guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for all entities. The adoption of this new guidance will change the presentation in our consolidated statement of cash flows as it will require ~~us to show~~disclosure of material climate-related risks and material direct greenhouse gas emissions from operations owned or controlled (Scope 1) and/or material indirect greenhouse gas emissions from purchased energy consumed in owned or controlled operations (Scope 2). Additionally, the ~~changes in the total of cash, cash equivalents and restricted cash in the statement of cash flows.~~

~~Revenue Recognition~~

~~In May 2014, the FASB issued ASUNo. 2014-09,~~ Revenue from Contracts with Customers, as a new Topic, ASC 606, which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principal of the new accounting guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Amendments to ASC Topic 340, Other Assets and Deferred Costs,rules require ~~the capitalization of costs to obtain and costs to fulfill customer contracts, which are currently expensed as incurred. The guidance also requires additional~~ disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The new guidance is effective for us in first quarter 2018, and early adoption is permitted beginning in first quarter 2017. Two methods of transition are permitted upon adoption; full retrospective and modified retrospective. Under the full retrospective method, prior periods would be restated under the new revenue standard, providing a comparable view across all periods presented. Under the modified retrospective method, prior periods would not be restated. Rather, revenues and other disclosures for~~pre-2018~~ ~~periods would be provided~~ in the notes to the financial statements as previously reported under the current revenue standard. We will adopt this new guidance in first quarter 2018 and we currently anticipate adopting the new guidance using the full retrospective method to restate each prior reporting period presented.

~~A full assessment to determine the impacts~~ of the ~~new accounting standard has been performed.~~effects of severe weather events and other natural conditions, subject to certain materiality thresholds. The disclosure requirements will begin phasing in for annual reports and registration statements including financial information with respect to annual periods beginning in calendar year 2025. On April 4, 2024, the SEC issued an order staying the rules during the pendency of a number of legal challenges to the rules’ validity. We are ~~currently implementing new accounting and operational processes which are a result of the new guidance and are analyzing~~continuing to monitor these developments while evaluating the impact of ~~these changes. We anticipate this standard will have a material impact~~the rules on ~~individual lines in~~ our consolidated financial statements, ~~but we do not expect it will have as material an impact on our results of operations on an annual basis. The primary impacts of the new standard~~which are expected to ~~our product and service lines are anticipated to be as follows:~~

~~- 10 -~~

~~Brokerage segment~~

~~Revenue~~- We currently recognize revenue for certain of our brokerage activities, such as installments on agency bill, direct bill and contingent commission revenue, over a period of time either due to the transfer of value to our customers or as the remuneration becomes determinable. Under the new guidance, these revenues will be substantially recognized at a pointresult in time on the effective date of the associated policies when control of the policy transfers to the customer. Conversely under the new guidance we may need to defer certain revenues to reflect delivery of services over the contract period. As a result, revenue from certain arrangements will be recognized in earlier periods under the new guidance in comparison to our current accounting policies, and others will be recognized in later periods. The net effect of all of these changes on the timing and amount of revenue recognized will be a net increase in revenue recognized for our annual reporting periods with a shift in the timing of revenue recognized in the interim periods to the first quarter from the other three quarters.additional disclosures.

The primary reason for the increase in the amount of revenue recognized relates to our employee benefits business. Historically we have recognized this revenue throughout the contract period as underlying client exposure units became certain. Under the new guidance, the full year revenue under each of these contracts will be estimated at the effective date of the underlying policies resulting in acceleration of revenue recognized, with a reassessment at each reporting date. This also will cause a shift in the timing of revenue recognized in the interim periods as a majority of these annual contracts incept in the first quarter. Partially offsetting this interim impact will be the recognition of contingent commissions related to all of our brokerage business as these revenues will be estimated and accrued throughout the year as the underlying business is placed with the insurance carriers rather than our historical recognition where the majority of these were recognized in the first quarter, typically when we received cash or the related policy detail or other carrier specific information from the insurance carrier.3. Business Combinations

~~Expense -~~ The assets recognized for the costs to obtain and/or fulfill a contract will be amortized on a systematic basis that is consistent with the transfer of the services to which the asset relates. For the vast majority of our contracts, the renewal period is one year or less and renewal costs are commensurate with the initial contract, thus we plan to apply a practical expedient and recognize the costs of obtaining a contract as an expense when incurred. We are quantifying and analyzing the impact of the costs to fulfill a contract. We do not expect the net impact on an annual basis of deferring and amortizing these costs to be material, but it will have an impact on the timing of expenses recognized in the interim periods.

~~Risk management segment~~

~~Revenue~~ - Under the new guidance, when we have the obligation to adjust claims until closure and are compensated on a per claim basis, we will recognize the full amount of the claim revenue upon notification of the claim and defer certain revenues to reflect delivery of services over the claim handling period. When our obligation is to provide claims services throughout a contract period, we will recognize revenue ratably across that contract period. As such, we anticipate the net impact of the new guidance will require more initial revenue deferral and recognition over a longer period of time than under our current accounting policies.

~~Expense -~~The assets recognized for the costs to obtain and/or to fulfill a contract will be amortized on a systematic basis that is consistent with the transfer of the services to which the asset relates. We do not believe we have material costs to obtain and we are quantifying the impact of our costs to fulfill. We do not expect the net impact of deferring and amortizing these costs to obtain or to fulfill to be material on our annual or interim reporting periods.

~~Corporate segment~~

We expect that the timing related to recognition of revenue in our corporate segment will remain substantially unchanged. We do not expect a material impact on our annual after tax earnings, but we do expect a material change in the emergence of our after tax earnings in the interim quarterly periods as income tax credits are recognized based on our quarterly consolidated~~pre-tax~~ ~~earnings patterns.~~

~~- 11 -~~

~~Business Combinations~~

During the ~~nine-month~~three-month period ended ~~September 30, 2017,~~March 31, 2024, we acquired substantially all of the ownership interest or net assets, as applicable, of the following firms in exchange for our common stock and/or cash. These acquisitions have been accounted for using the acquisition method for recording business combinations (in millions, except share data):

Name and Effective
Date of Acquisition
   Common
Shares
Issued    Common
Share
Value    Cash Paid    Accrued
Liability    Escrow
Deposited    Recorded
Earnout
Payable    Total
Recorded
Purchase
Price    Maximum
Potential
Earnout
Payable
   (000s)
Construction Risk Solutions, LLC (CRS) January 1, 2017
   —      $ —      $ 27.9    $ —      $ 3.1    $ 4.4    $ 35.4    $ 10.0
Hill, Chesson & Woody (HCW) January 1, 2017
   —      —      34.8    —      0.7    15.9    51.4    24.4
Presidio Group, Inc. (PG) January 1, 2017
   —      —      41.8    —      4.8    7.0    53.6    15.0
Commercial Insurance Brokers (CIB) April 1, 2017
   —      —      17.7    —      2.0    0.8    20.5    3.6
Williams - Mannny Insurance Group (WMI) May 1, 2017
   170    9.8    28.2    —      2.0    5.4    45.4    11.5
GPL Assurance Inc. (GPL) August 1, 2017
   —      —      37.8    —      4.2    4.3    46.3    8.0
Lutgert Insurance (LI) September 1, 2017
   —      —      25.2    —      1.3    4.4    30.9    10.2
Twenty-three other acquisitions completed in 2017
   245    12.3    86.7    —      7.3    27.2    133.5    64.2
















   415    $ 22.1    $ 300.1    $ —      $ 25.4    $ 69.4    $ 417.0    $ 146.9


													Total		Maximum
	Common		Common								Recorded		Recorded		Potential
Name and Effective	Shares		Share				Accrued		Escrow		Earnout		Purchase		Earnout
Date of Acquisition	Issued		Value		Cash Paid		Liability		Deposited		Payable		Price		Payable
	(000s)
Ericson Insurance Services, LLC January 1, 2024 (EIS)		129	$	30.1	$	26.5	$	—	$	3.0	$	7.0	$	66.6	$	10.0
The Rowley Agency, LLC January 1, 2024 (TRA)		—		—		117.2		—		11.0		—		128.2		—
Ten other acquisitions completed in 2024		229		48.8		99.9		0.6		7.9		23.9		181.1		46.6
		358	$	78.9	$	243.6	$	0.6	$	21.9	$	30.9	$	375.9	$	56.6

On September 20, 2017, we signed a definitive agreement to acquire substantially all the assets of DiBrina Group headquartered in Sudbury, Ontario, Canada, for approximately $42.8 million of cash consideration plus a maximum potential earnout of approximately $24.0 million. The transaction was subject to customary closing conditions and closed on October 4, 2017.

Common shares issued in connection with acquisitions are valued at closing market prices as of the effective date of the applicable ~~acquisition.~~acquisition or on the days when the shares are issued, if purchase consideration is deferred. We record escrow deposits that are returned to us as a result of adjustments to net assets acquired as reductions of goodwill when the escrows are settled. The maximum potential earnout payables disclosed in the foregoing table represent the maximum amount of additional consideration that could be paid pursuant to the terms of the purchase agreement for the applicable acquisition. The amounts recorded as earnout payables, which are primarily based upon the estimated future operating results of the acquired entities over atwo- to three-year period subsequent to the acquisition date, are measured at fair value as of the acquisition date and are included on that basis in the recorded purchase price consideration in the foregoing table. We will record subsequent changes in these estimated earnout obligations, including the accretion of discount, in our consolidated statement of earnings when incurred.

- 14 -

The fair value of these earnout obligations is generally based on the present value of the expected future payments to be made to the sellers of the acquired entities in accordance with the provisions outlined in the respective purchase agreements, which is a Level 3 fair value ~~measurement.~~measurement (discounted cash flow method of the income approach). In determining fair value, we estimated the acquired entity’s future performance using financial projections developed by management for the acquired entity and market participant assumptions that were derived for revenue growth and/or profitability. Revenue growth rates generally ranged from ~~5.0%~~5.0% to ~~17.0%~~15.0% for our ~~2017~~2024 acquisitions. We estimated future payments using the earnout formula and performance targets specified in each purchase agreement and ~~these~~the financial ~~projections.~~projections just described. We then discounted these

~~- 12 -~~

payments to present value using a risk-adjusted rate that takes into consideration market-based rates of return that reflect the ability of the acquired entity to achieve the targets. ~~These~~The discount ~~rates generally ranged from 7.5% to 9.0%~~rate was 9.0% for all of our ~~2017~~2024 acquisitions. In some instances, the fair value of these earnout obligations can be based on other valuation methods including the Black-Scholes Option Pricing Method or Monte Carlo Simulation method. Changes in financial projections, market participant assumptions for revenue growth and/or profitability, or the risk-adjusted discount rate, would result in a change in the fair value of recorded earnout obligations.

During the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, we recognized ~~$4.9~~$18.8 million and $4.3 million, respectively, of expense in our consolidated statement of earnings related to the accretion of the discount recorded for earnout obligations in connection with our acquisitions. During the nine-month periods ended September 30, 2017 and 2016, we recognized $15.2 million and $12.5$19.8 million, respectively, of expense in our consolidated statement of earnings related to the accretion of the discount recorded for earnout obligations in connection with our acquisitions. In addition, during the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, we recognized ~~$5.7 million of expense and $0.2~~$34.9 million of income ~~respectively, related to net adjustments in the estimated fair value of earnout obligations in connection with revised projections of future performance for 31~~ and ~~27 acquisitions, respectively. In addition, during the nine-month periods ended September 30, 2017 and 2016, we recognized $12.3 million and $8.7~~ $22.0million of expense, respectively, related to net adjustments in the estimated fair value of the liability for earnout obligations in connection with revised assumptions due to changes in interest rates, volatility and other assumptions and projections of future performance for 8937 and 77 22acquisitions, respectively. The net adjustments in the three-month period ended March 31, 2024, include changes made to the estimated fair value of the Willis Re acquisition earnout and reflect updated assumptions as of March 31, 2024. The aggregate amount of maximum earnout obligations related to acquisitions was ~~$563.9~~$1,935.9 million as of ~~September 30, 2017,~~March 31, 2024, of which ~~$274.3~~$1,240.5 million was recorded in ~~our~~the consolidated balance sheet as of ~~September 30, 2017,~~March 31, 2024, based on the estimated fair value of the expected future payments to be ~~made.~~made, of which approximately $503.0million can be settled in cash or stock at our option and $737.5 million must be settled in cash.

The following is a summary of the estimated fair values of the net assets acquired at the date of each acquisition made in the ~~nine-month~~three-month period ended ~~September 30, 2017~~March 31, 2024 (in millions):


	CRS		HCW		PG		CIB		WMI		GPL		LI		Twenty-three Other Acquisitions		Total						Ten Other
Cash	$	—	$	—	$	—	$	0.1	$	0.3	$	0.4	$	0.2	$	5.4	$	6.4
																			EIS		TRA		Acquisitions		Total
Cash and cash equivalents																			$	0.1	$	4.1	$	4.3	$	8.5
Fiduciary assets																				1.0		2.6		10.4		14.0
Other current assets		3.6		2.1		2.4		3.6		1.8		13.6		1.2		7.7		36.0		3.5		0.5		4.5		8.5
Fixed assets		—		—		0.5		0.1		0.2		1.0		0.6		1.2		3.6		—		0.4		0.1		0.5
Noncurrent assets		—		0.2		—		—		—		—		—		—		0.2		0.1		1.7		1.0		2.8
Goodwill		20.3		29.9		25.6		11.7		26.1		27.1		15.0		72.4		228.1		27.4		65.8		94.1		187.3
Expiration lists		14.6		19.2		27.9		9.0		18.5		21.1		14.8		63.8		188.9		35.9		57.4		88.1		181.4
Non-compete agreements		0.1		0.1		0.1		—		0.1		0.5		0.1		1.8		2.8		0.5		0.6		3.3		4.4


Total assets acquired		38.6		51.5		56.5		24.5		47.0		63.7		31.9		152.3		466.0		68.5		133.1		205.8		407.4


Fiduciary liabilities																				1.0		2.6		10.4		14.0
Current liabilities		3.2		0.1		2.9		4.0		1.6		11.6		1.0		9.9		34.3		0.8		0.6		7.2		8.6
Noncurrent liabilities		—		—		—		—		—		5.8		—		8.9		14.7		0.1		1.7		7.1		8.9


Total liabilities assumed		3.2		0.1		2.9		4.0		1.6		17.4		1.0		18.8		49.0		1.9		4.9		24.7		31.5


Total net assets acquired	$	35.4	$	51.4	$	53.6	$	20.5	$	45.4	$	46.3	$	30.9	$	133.5	$	417.0	$	66.6	$	128.2	$	181.1	$	375.9

Among other things, these acquisitions allow us to expand into desirable geographic locations, further extend our presence in the retail and wholesale insurance and reinsurance brokerage ~~services and risk management industries~~markets and increase the volume of general services currently provided. The excess of the purchase price over the estimated fair value of the tangible net assets acquired at the acquisition date was allocated to goodwill, expiration lists andnon-compete agreements in the amounts of ~~$228.1~~$187.3 million, ~~$188.9~~$181.4 million and ~~$2.8~~$4.4 million, respectively, within the brokerage ~~and risk management segments.~~segment.

- 15 -

Provisional estimates of fair value are established at the time of each acquisition and are subsequently reviewed and finalized within the first year of operations subsequent to the acquisition date to determine the necessity for adjustments. During this period, we may use independent third-party valuation specialists to assist us in finalizing the fair value of assets acquired and liabilities assumed. Fair value adjustments, if any, are most common to the values established for amortizable intangible assets, including expiration lists, non‑compete agreements and trade names, as well as for acquired software, and earnout liabilities, with the offset to goodwill, net of any income tax effect.

The fair value of the tangible assets and liabilities for each applicable acquisition at the acquisition date approximated their carrying values. ~~The~~In general, the fair value of expiration lists was established using the excess earnings method, which is an income approach based on estimated financial projections developed by management for each acquired entity using market participant assumptions. ~~Revenue growth and attrition rates generally ranged from 2.0% to 3.3% and 5.0% to 10.0%,~~

~~- 13 -~~

~~respectively, for our 2016 and 2017 acquisitions for which valuations were performed in 2017.~~ We estimate the fair value as the present value of the benefits anticipated from ownership of the subject ~~customer~~expiration list in excess of returns required on the investment in contributory assets necessary to realize those benefits. The rate used to discount the net benefits was based on a risk-adjusted rate that takes into consideration market-based rates of return and reflects the risk of the asset relative to the acquired business. ~~These discount rates generally ranged from 12.0% to 14.0% for our 2016 and 2017 acquisitions for which valuations were performed in 2017.~~ The fair value ofnon-compete agreements was established using the profit differential method, which is an income approach based on estimated financial projections developed by management for the acquired company using market participant assumptions and variousnon-compete scenarios.

Expiration lists,non-compete agreements and trade names related to our acquisitions are amortized using the straight-line method over their estimated useful lives ~~(three~~(two to fifteen years for expiration lists, ~~three~~two to ~~five~~six years fornon-compete agreements and ~~three~~two to ~~five~~fifteen years for trade names), while goodwill is not subject to amortization. We use the straight-line method to amortize these intangible assets because the pattern of their economic benefits cannot be reasonably determined with any certainty. We review all of our identifiable intangible assets for impairment periodically (at least annually) and whenever events or changes in business circumstances indicate that the carrying value of the assets may not be recoverable. In reviewing identifiable intangible assets, if the ~~fair value~~undiscounted future cash flows were less than the carrying amount of the respective (or underlying) asset, an indicator of impairment would exist and further analysis would be required to determine whether or not a loss would need to be charged against current period earnings as a component of amortization expense. Based on the results of impairment reviews during the three-month ~~and nine-month periods~~period ended ~~September 30, 2017, we wrote off $4.5 million and $6.2 million, respectively, of amortizable intangible assets related to the brokerage segment.~~March 31, 2024 no impairments were noted. Based on the results of impairment reviews during the three-month ~~and nine-month periods~~period ended ~~September 30, 2016,~~March 31, 2023, we wrote off ~~$1.5~~$0.1 million ~~and $1.8 million, respectively,~~ of amortizable ~~intangible~~ assets related to the brokerage ~~segment.~~and risk management segments.

Of the ~~$188.9~~$181.4 million of expiration lists and ~~$2.8~~$4.4 million ofnon-compete agreements related to our acquisitions made during the ~~nine-month~~three-month period ended ~~September 30, 2017, $49.8~~March 31, 2024, $22.7 million and ~~$2.0~~ $1.6million, respectively, isare not expected to be deductible for income tax purposes. Accordingly, we recorded a deferred tax liability of ~~$13.7~~$5.7 million, and a corresponding amount of goodwill, in the ~~nine-month~~three-month period ended ~~September 30, 2017,~~March 31, 2024, related to the nondeductible amortizable intangible assets.

Our unaudited consolidated financial statements for the ~~nine-month~~three-month period ended ~~September 30, 2017~~March 31, 2024 include the operations of the entities acquired ~~entities~~in the three-month period ended March 31, 2024 from their respective acquisition dates. The following is a summary of the unaudited pro forma historical results, as if these entities had been acquired at January 1, ~~2016~~2023 (in millions, except per share data):


									Three-month period ended
	Three-month period ended September 30,				Nine-month period ended September 30,				March 31,
	2017		2016		2017		2016		2024		2023
Total revenues	$	1,589.3	$	1,517.5	$	4,600.0	$	4,317.2	$	3,257.9	$	2,727.5
Net earnings attributable to controlling interests		130.1		123.4		359.8		320.4		608.3		488.3
Basic net earnings per share		0.72		0.69		2.00		1.80		2.80		2.29
Diluted net earnings per share		0.71		0.69		1.98		1.79		2.74		2.25

The unaudited pro forma results above have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had these acquisitions occurred at January 1, ~~2016,~~2023, nor are they necessarily indicative of future operating results. Annualized revenues of entities acquired during the ~~nine-month~~three-month period ended ~~September 30, 2017~~March 31, 2024 totaled approximately ~~$143.0~~$69.2 million. For the~~nine-month~~ three-month period ended ~~September 30, 2017,~~March 31, 2024, total revenues, net pre-tax loss and net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables (EBITDAC) recorded in our unaudited consolidated statement of earnings related to our acquisitions made during the ~~nine-month~~three-month period ended ~~September 30, 2017~~March 31, 2024 in the aggregate, were ~~$69.2~~$12.2 million, $(5.7) million and ~~$2.4~~$(1.1) million, respectively.

- 16 -

4. Contracts with Customers

Contract Assets and Liabilities/Contract Balances

Information about unbilled receivables, contract assets and contract liabilities from contracts with customers is as follows (in millions):

~~- 14 -~~


	March 31, 2024		December 31, 2023
Unbilled receivables	$	1,641.1	$	1,093.7
Deferred contract costs		112.2		169.1
Deferred revenue		785.3		706.2

~~Other Current Assets~~

The unbilled receivables, which are included in accounts receivable in our consolidated balance sheet, primarily relate to our rights to consideration for work completed but not billed at the reporting date. These are transferred to the receivables when the client is billed. The deferred contract costs represent the costs we incur to fulfill a new or renewal contract with our clients prior to the effective date of the contract. These costs are expensed on the contract effective date. The deferred revenue in the consolidated balance sheet includes amounts that represent the remaining performance obligations under our contracts and amounts collected related to advanced billings and deposits received from customers that may or may not ultimately be recognized as revenues in the future. Deposits received from customers could be returned to the customers based on lesser actual transactional volume than originally billed volume.

~~Major classes~~Significant changes in the deferred revenue balances, which include foreign currency translation adjustments, during the period are as follows (in millions):


				Risk
	Brokerage			Management			Total
Deferred revenue at December 31, 2023	$	533.6		$	172.6		$	706.2
Incremental deferred revenue		322.4			17.2			339.6
Revenue recognized during the three-month period ended March 31, 2024 included in deferred revenue at December 31, 2023		(252.2	)		(16.0	)		(268.2	)
Net change in collected billings/deposits received from customers		8.4			2.5			10.9
Impact of change in foreign exchange rates		(6.8	)		(0.5	)		(7.3	)
Deferred revenue recognized from business acquisitions		4.1			—			4.1
Deferred revenue at March 31, 2024	$	609.5		$	175.8		$	785.3

Revenue recognized during the three-month period ended March 31, 2024 in the table above included revenue from 2023 acquisitions that would not be reflected in prior periods.

Remaining Performance Obligations

Remaining performance obligations represent the portion of the contract price for which work has not been performed. As of March 31, 2024, the aggregate amount of the contract price allocated to remaining performance obligations was $785.3 million. The estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period is as follows (in millions):


	Brokerage		Risk Management		Total
2024 (remaining nine months)	$	534.1	$	101.3	$	635.4
2025		59.7		31.3		91.0
2026		12.2		14.2		26.4
2027		1.8		11.5		13.3
2028		0.9		6.1		7.0
Thereafter		0.8		11.4		12.2
Total	$	609.5	$	175.8	$	785.3

Deferred Contract Costs

We capitalize costs incurred to fulfill contracts as deferred contract costs which are included in other current assets ~~consist~~in our consolidated balance sheet. Deferred contract costs were $112.2 million and $169.1 million as of March 31, 2024 and December 31, 2023, respectively. Capitalized fulfillment costs are amortized to expense on the contract effective date. The amount of amortization of the

- 17 -

deferred contract costs was $204.0 million and $177.2 million for the three-month periods ended March 31, 2024 and 2023, respectively.

We have applied the practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the ~~following (in millions):~~

   September 30,
2017    December 31,
2016
Premium finance advances and loans
   $ 292.5    $ 241.2
Accrued supplemental, direct bill and other receivables
   172.4    177.2
Refined coal production related receivables
   125.7    136.9
Prepaid expenses
   89.0    78.4




Total other current assets
   $ 679.6    $ 633.7

~~The premium finance loans represent short-term loans which~~assets that we ~~make to many of~~otherwise would have recognized is one year or less for our brokerage ~~related clients~~segment. These costs are included in compensation and ~~othernon-brokerage~~ clients to finance their premiums paid to insurance carriers. These premium finance loans are primarily generated by three Australian and New Zealand premium finance subsidiaries. Financing receivables are carried at amortized cost. Given that these receivables carry a fairly rapid delinquency periodoperating expenses in our consolidated statement of only seven days post payment date, and that contractually the majority of the underlying insurance policies will be cancelled within one month of the payment due date in normal course, there historically has been a minimal risk of not receiving payment, and therefore we do not maintain any significant allowance for losses against this balance.earnings.

5. Intangible Assets

~~Intangible Assets~~

The carrying amount of goodwill at ~~September 30, 2017~~March 31, 2024 and December 31, ~~2016~~2023 allocated by domestic and foreign operations is as follows (in millions):


At September 30, 2017	Brokerage		Risk Management		Corporate		Total
									Brokerage		Risk Management		Corporate		Total
At March 31, 2024
United States	$	2,285.5	$	25.8	$	—	$	2,311.3	$	6,425.2	$	74.8	$	—	$	6,500.0
United Kingdom		738.3		7.3		—		745.6		2,493.3		18.4		—		2,511.7
Canada		345.9		—		—		345.9		607.8		—		—		607.8
Australia		427.8		—		—		427.8		493.8		129.9		—		623.7
New Zealand		216.8		9.9		—		226.7		193.5		9.0		—		202.5
Other foreign		100.2		—		2.9		103.1		1,067.4		—		19.0		1,086.4

Total goodwill - net	$	4,114.5	$	43.0	$	2.9	$	4,160.4


At December 31, 2016

Total goodwill									$	11,281.0	$	232.1	$	19.0	$	11,532.1
At December 31, 2023
United States	$	2,115.0	$	23.5	$	—	$	2,138.5	$	6,304.5	$	74.8	$	—	$	6,379.3
United Kingdom		662.2		4.3		—		666.5		2,493.4		18.5		—		2,511.9
Canada		292.2		—		—		292.2		623.7		—		—		623.7
Australia		382.7		—		—		382.7		514.6		135.9		—		650.5
New Zealand		205.0		0.3		—		205.3		204.2		9.6		—		213.8
Other foreign		79.8		—		2.8		82.6		1,077.4		—		19.0		1,096.4


Total goodwill - net	$	3,736.9	$	28.1	$	2.8	$	3,767.8

Total goodwill									$	11,217.8	$	238.8	$	19.0	$	11,475.6

~~- 15 -~~

The changes in the carrying amount of goodwill for the ~~nine-month~~three-month period ended ~~September 30, 2017~~March 31, 2024 are as follows (in millions):

   Brokerage    Risk
Management    Corporate    Total
Balance as of December 31, 2016
   $ 3,736.9    $ 28.1    $ 2.8    $ 3,767.8
Goodwill acquired during the period
   214.0    14.1    —      228.1
Goodwill adjustments due to appraisals and other acquisition adjustments
   14.4    —      —      14.4
Foreign currency translation adjustments during the period
   149.2    0.8    0.1    150.1








Balance as of September 30, 2017
   $ 4,114.5    $ 43.0    $ 2.9    $ 4,160.4


	Brokerage			Risk Management			Corporate		Total
Balance as of December 31, 2023	$	11,217.8		$	238.8		$	19.0	$	11,475.6
Goodwill acquired during the period		187.3			—			—		187.3
Goodwill true-ups due to appraisals and other acquisition adjustments (see Note 3)		(31.9	)		—			—		(31.9	)
Foreign currency translation adjustments during the period		(92.2	)		(6.7	)		—		(98.9	)
Balance as of March 31, 2024	$	11,281.0		$	232.1		$	19.0	$	11,532.1

Major classes of amortizable intangible assets at ~~September 30, 2017~~March 31, 2024 and December 31, ~~2016~~2023 consist of the following (in millions):


	September 30,			December 31,
	2017			2016			March 31,			December 31,
							2024			2023
Expiration lists	$	3,025.8		$	2,757.6		$	8,342.8		$	8,222.8
Accumulated amortization - expiration lists		(1,365.9	)		(1,143.0	)		(3,857.7	)		(3,733.2	)
								4,485.1			4,489.6
		1,659.9			1,614.6

Non-compete agreements		53.3			49.3			115.1			112.2
Accumulated amortization -non-compete agreements		(45.7	)		(42.1	)		(78.2	)		(74.9	)

		7.6			7.2
								36.9			37.3
Trade names		26.2			24.0			168.6			171.8
Accumulated amortization - trade names		(22.5	)		(18.5	)		(68.9	)		(65.4	)
								99.7			106.4
		3.7			5.5

Net amortizable assets	$	1,671.2		$	1,627.3		$	4,621.7		$	4,633.3

Estimated aggregate amortization expense for each of the next five years is as follows:


2017 (remaining three months)
   $ 65.4
2018
   253.8
2019
   239.5
2020
   222.8
2021
   198.7


Total
   $ 980.2

- 1618 -

~~Credit and Other Debt Agreements~~

~~The following~~Estimated aggregate amortization expense for each of the next five years and thereafter is ~~a summary of our corporate and other debt~~as follows (in millions):

   September 30,
2017 December 31,
2016
Note Purchase Agreements:

Semi-annual payments of interest, fixed rate of 6.44%, balloon due August 3, 2017
   $ —   $ 300.0
Semi-annual payments of interest, fixed rate of 2.80%, balloon due June 24, 2018
   50.0 50.0
Semi-annual payments of interest, fixed rate of 5.85%, $50 million due November 30, 2018 and November 30, 2019
   100.0 100.0
Semi-annual payments of interest, fixed rate of 3.20%, balloon due June 24, 2019
   50.0 50.0
Semi-annual payments of interest, fixed rate of 3.48%, balloon due June 24, 2020
   50.0 50.0
Semi-annual payments of interest, fixed rate of 3.99%, balloon due July 10, 2020
   50.0 50.0
Semi-annual payments of interest, fixed rate of 5.18%, balloon due February 10, 2021
   75.0 75.0
Semi-annual payments of interest, fixed rate of 3.69%, balloon due June 14, 2022
   200.0 200.0
Semi-annual payments of interest, fixed rate of 5.49%, balloon due February 10, 2023
   50.0 50.0
Semi-annual payments of interest, fixed rate of 4.13%, balloon due June 24, 2023
   200.0 200.0
Quarterly payments of interest, floating rate of 90 day LIBOR plus 1.65%, balloon due
August 2, 2023
   50.0 —
Semi-annual payments of interest, fixed rate of 4.58%, balloon due February 27, 2024
   325.0 325.0
Semi-annual payments of interest, fixed rate of 4.31%, balloon due June 24, 2025
   200.0 200.0
Semi-annual payments of interest, fixed rate of 4.73%, balloon due February 27, 2026
   175.0 175.0
Semi-annual payments of interest, fixed rate of 4.40%, balloon due June 2, 2026
   175.0 175.0
Semi-annual payments of interest, fixed rate of 4.36%, balloon due June 24, 2026
   150.0 150.0
Semi-annual payments of interest, fixed rate of 4.09%, balloon due June 27, 2027
   125.0 —
Semi-annual payments of interest, fixed rate of 4.09%, balloon due August 2, 2027
   125.0 —
Semi-annual payments of interest, fixed rate of 4.14%, balloon due August 4, 2027
   98.0 —
Semi-annual payments of interest, fixed rate of 3.46%, balloon due December 1, 2027
   100.0 100.0
Semi-annual payments of interest, fixed rate of 4.55%, balloon due June 2, 2028
   75.0 75.0
Semi-annual payments of interest, fixed rate of 4.98%, balloon due February 27, 2029
   100.0 100.0
Semi-annual payments of interest, fixed rate of 4.19%, balloon due June 27, 2029
   50.0 —
Semi-annual payments of interest, fixed rate of 4.19%, balloon due August 2, 2029
   50.0 —
Semi-annual payments of interest, fixed rate of 4.70%, balloon due June 2, 2031
   25.0 25.0
Semi-annual payments of interest, fixed rate of 4.34%, balloon due June 27, 2032
   75.0 —
Semi-annual payments of interest, fixed rate of 4.34%, balloon due August 2, 2032
   75.0 —


Total Note Purchase Agreements
   2,798.0 2,450.0


Credit Agreement:

Periodic payments of interest and principal, prime or LIBOR plus up to 1.45%, expires April 8, 2021
   75.0 278.0


Premium Financing Debt Facility - expires May 18, 2019:

Periodic payments of interest and principal, Interbank rates plus 1.05% for Facility B; plus 0.55% for Facilities C and D

Facility B

AUD denominated tranche
   119.8 100.7
NZD denominated tranche
   5.9 9.0
Facility C and D

AUD denominated tranche
   19.8 5.6
NZD denominated tranche
   10.9 10.3


Total Premium Financing Debt Facility
   156.4 125.6


Total corporate and other debt
   3,029.4 2,853.6
Less unamortized debt acquisition costs on Note Purchase Agreements
   (6.3 ) (5.4 )


Net corporate and other debt
   $ 3,023.1 $ 2,848.2


2024 (remaining nine months)	$	473.3
2025		593.8
2026		550.9
2027		513.1
2028		472.3
Thereafter		2,018.3
Total	$	4,621.7

- 1719 -

6. Credit and Other Debt Agreements


The following is a summary of our corporate and other debt (in millions):	March 31,			December 31,
	2024			2023
Senior Notes:
Semi-annual payments of interest, fixed rate of 2.40%, balloon due November 9, 2031	$	400.0		$	400.0
Semi-annual payments of interest, fixed rate of 5.50%, balloon due March 2, 2033		350.0			350.0
Semi-annual payments of interest, fixed rate of 6.50%, balloon due February 15, 2034		400.0			400.0
Semi-annual payments of interest, fixed rate of 5.45%, balloon due July 15, 2034		500.0			—
Semi-annual payments of interest, fixed rate of 3.50%, balloon due May 20, 2051		850.0			850.0
Semi-annual payments of interest, fixed rate of 3.05%, balloon due March 9, 2052		350.0			350.0
Semi-annual payments of interest, fixed rate of 5.75%, balloon due March 2, 2053		600.0			600.0
Semi-annual payments of interest, fixed rate of 6.75%, balloon due February 15, 2054		600.0			600.0
Semi-annual payments of interest, fixed rate of 5.75%, balloon due July 15, 2054		500.0			—
Total Senior Notes		4,550.0			3,550.0
Note Purchase Agreements:
Semi-annual payments of interest, fixed rate of 4.72%, balloon due February 13, 2024		—			100.0
Semi-annual payments of interest, fixed rate of 4.58%, balloon due February 27, 2024		—			325.0
Semi-annual payments of interest, fixed rate of 4.31%, balloon due June 24, 2025		200.0			200.0
Semi-annual payments of interest, fixed rate of 4.85%, balloon due February 13, 2026		140.0			140.0
Semi-annual payments of interest, fixed rate of 4.73%, balloon due February 27, 2026		175.0			175.0
Semi-annual payments of interest, fixed rate of 4.40%, balloon due June 2, 2026		175.0			175.0
Semi-annual payments of interest, fixed rate of 4.36%, balloon due June 24, 2026		150.0			150.0
Semi-annual payments of interest, fixed rate of 3.75%, balloon due January 30, 2027		30.0			30.0
Semi-annual payments of interest, fixed rate of 4.09%, balloon due June 27, 2027		125.0			125.0
Semi-annual payments of interest, fixed rate of 4.09%, balloon due August 2, 2027		125.0			125.0
Semi-annual payments of interest, fixed rate of 4.14%, balloon due August 4, 2027		98.0			98.0
Semi-annual payments of interest, fixed rate of 3.46%, balloon due December 1, 2027		100.0			100.0
Semi-annual payments of interest, fixed rate of 4.55%, balloon due June 2, 2028		75.0			75.0
Semi-annual payments of interest, fixed rate of 4.34%, balloon due June 13, 2028		125.0			125.0
Semi-annual payments of interest, fixed rate of 5.04%, balloon due February 13, 2029		100.0			100.0
Semi-annual payments of interest, fixed rate of 4.98%, balloon due February 27, 2029		100.0			100.0
Semi-annual payments of interest, fixed rate of 4.19%, balloon due June 27, 2029		50.0			50.0
Semi-annual payments of interest, fixed rate of 4.19%, balloon due August 2, 2029		50.0			50.0
Semi-annual payments of interest, fixed rate of 3.48%, balloon due December 2, 2029		50.0			50.0
Semi-annual payments of interest, fixed rate of 3.99%, balloon due January 30, 2030		341.0			341.0
Semi-annual payments of interest, fixed rate of 4.44%, balloon due June 13, 2030		125.0			125.0
Semi-annual payments of interest, fixed rate of 5.14%, balloon due March 13, 2031		180.0			180.0
Semi-annual payments of interest, fixed rate of 4.70%, balloon due June 2, 2031		25.0			25.0
Semi-annual payments of interest, fixed rate of 4.09%, balloon due January 30, 2032		69.0			69.0
Semi-annual payments of interest, fixed rate of 4.34%, balloon due June 27, 2032		75.0			75.0
Semi-annual payments of interest, fixed rate of 4.34%, balloon due August 2, 2032		75.0			75.0
Semi-annual payments of interest, fixed rate of 4.59%, balloon due June 13, 2033		125.0			125.0
Semi-annual payments of interest, fixed rate of 5.29%, balloon due March 13, 2034		40.0			40.0
Semi-annual payments of interest, fixed rate of 4.48%, balloon due June 12, 2034		175.0			175.0
Semi-annual payments of interest, fixed rate of 4.24%, balloon due January 30, 2035		79.0			79.0
Semi-annual payments of interest, fixed rate of 2.44%, balloon due February 10, 2036		100.0			100.0
Semi-annual payments of interest, fixed rate of 2.46%, balloon due May 5, 2036		75.0			75.0
Semi-annual payments of interest, fixed rate of 4.69%, balloon due June 13, 2038		75.0			75.0
Semi-annual payments of interest, fixed rate of 5.45%, balloon due March 13, 2039		40.0			40.0
Semi-annual payments of interest, fixed rate of 4.49%, balloon due January 30, 2040		56.0			56.0
Total Note Purchase Agreements		3,523.0			3,948.0
Credit Agreement:
Periodic payments of interest and principal, prime or SOFR plus up to 1.075%, expires June 22, 2028		108.2			245.0
Premium Financing Debt Facility - expires October 31, 2025:
Facility B
AUD denominated tranche, interbank rates plus 1.500%		176.2			249.0
NZD denominated tranche, interbank rates plus 1.850%		—			—
Facility C and D
AUD denominated tranche, interbank rates plus 0.830%		—			31.4
NZD denominated tranche, interbank rates plus 0.990%		8.1			8.6
Total Premium Financing Debt Facility		184.3			289.0
Total corporate and other debt		8,365.5			8,032.0
Less unamortized debt acquisition costs on Senior Notes and Note Purchase Agreements		(47.7	)		(38.4	)
Less unamortized discount on Bonds Payable		(35.7	)		(28.6	)
Net corporate and other debt	$	8,282.1		$	7,965.0

Senior Notes -On ~~June 13, 2017,~~February 12, 2024, we ~~announced that we planned to close offerings~~closed and funded an offering of ~~$648.0~~$1,000.0 million of unsecured senior notes in two tranches. The $500.0 million aggregate principal amount of ~~private placement senior unsecured notes (both fixed~~5.45% Senior Notes is due in 2034 (which we refer to as the 2034 July Notes) and ~~floating rate)~~$500.0 million aggregate principal amount of 5.75% Senior Notes is due in 2054 (which we refer to as the 2054 July Notes). We funded $250.0 million on June 27, 2017, $300.0 million on August 2, 2017 and $98.0 million on August 4, 2017, which was used in part to repay our $300.0 million August 3, 2017 debt maturity. The ~~weighted average maturity of the $598.0 million of senior fixed rate notes is 11.6 years and their~~ weighted average interest rate is ~~4.04%~~5.71% per annum after giving effect to ~~hedging gains. The interest rate on the $50.0 million of floating rate notes would be 3.02% using three-month LIBOR on October 24, 2017. In 2016~~underwriting costs and ~~2017,~~a net hedge loss. During 2023, we

- 20 -

entered into a pre-issuance interest rate hedging ~~transactions~~transaction related to ~~the $300.0 million August 3, 2017 maturity private placement.~~these notes. We realized a net cash ~~gain~~loss of approximately ~~$8.3~~$1.4 million on the hedging ~~transaction~~transactions that will be recognized on a pro rata basis as ~~a reduction in~~an increase to our reported interest expense over ten years. We used the ~~life~~proceeds of ~~the debt.~~these offerings to fund acquisitions, earnout payments related to acquisitions and general corporate purposes.

~~Earnings Per Share~~

7. Earnings Per Share

The following table sets forth the computation of basic and diluted net earnings per share (in millions, except per share data):


									Three-month period ended
	Three-month period ended September 30,				Nine-month period ended September 30,				March 31,
	2017		2016		2017		2016		2024		2023
Net earnings attributable to controlling interests	$	130.4	$	122.8	$	358.0	$	319.3	$	608.4	$	486.5

Weighted average number of common shares outstanding		180.5		177.6		179.8		177.4		217.5		212.8
Dilutive effect of stock options using the treasury stock method		2.0		0.9		1.8		0.8		4.5		4.2

Weighted average number of common and common equivalent shares outstanding		182.5		178.5		181.6		178.2		222.0		217.0

Basic net earnings per share	$	0.72	$	0.69	$	1.99	$	1.80	$	2.80	$	2.29

Diluted net earnings per share	$	0.71	$	0.69	$	1.97	$	1.79	$	2.74	$	2.24

~~Options to purchase 1.7~~Anti-dilutive stock-based awards of 0.5 million and ~~4.5~~0.3 million shares ~~of common stock~~ were outstanding at ~~September 30, 2017~~the three-month periods ended March 31, 2024 and ~~2016,~~2023, respectively, ~~but~~which were ~~not included~~excluded in the computation of the dilutive effect of ~~stock options~~stock-based awards for thethree-month periods then ended. Options to purchase 1.2 million and 5.8 million shares of common stock were outstanding at September 30, 2017 and 2016, respectively, but were not included in the computation of the dilutive effect of stock options for the~~nine-month~~ periods then ended. These ~~stock options~~stock‑based awards were excluded from the computation because the ~~options’~~ exercise prices on these stock‑based awards were greater than the average market price of our common shares during the respective period, and therefore, would be ~~anti-dilutive~~anti‑dilutive to earnings per share under the treasury stock method.

8. Stock Option Plans

~~Stock Option Plans~~

On May ~~16, 2017,~~10, 2022, our stockholders approved the Arthur J. Gallagher ~~2017~~& Co. 2022 Long-Term Incentive Plan (which we refer to as the LTIP), which replaced our previous stockholder-approved Arthur J. Gallagher & Co. ~~2014~~2017 Long-Term Incentive ~~Plan.~~Plan (which we refer to as the 2017 LTIP). The LTIP term began May ~~16, 2017~~10, 2022 and terminates on the date of the annual meeting of stockholders in ~~2027,~~2032, unless terminated earlier by our board of directors. All of our officers, employees andnon-employee directors are eligible to receive awards under the LTIP. The compensation committee of our board of directors determines the ~~participants~~annual number of shares delivered under the LTIP. The LTIP provides fornon-qualified and incentive stock options, stock appreciation rights, restricted stock and restricted stock ~~units and performance~~ units, any or all of which may be made contingent upon the achievement of performance criteria. ~~Subject to the LTIP limits, the compensation committee has the discretionary authority to determine the size of an award.~~

Shares of our common stock available for issuance under the LTIP include authorized and unissued shares of common stock or authorized and issued shares of common stock reacquired and held as treasury shares or otherwise, or a combination thereof. The number of available shares will be reduced by the aggregate number of shares that become subject to outstanding awards granted under the LTIP. A maximum of 3.5 million shares issued for full value awards (i.e., awards other than stock options or stock appreciation rights) will be counted one-for-one against the 13.5 million share pool, and every share subject to a full value award in excess of such limit will count as 3.8 shares against the pool. To the extent that shares subject to an outstanding award granted under either the LTIP or prior equity plans are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or by reason of the settlement of such award in cash, then such shares will again be available for grant under the LTIP.

~~- 18 -~~

The maximum number of shares available under the LTIP for restricted stock, restricted stock unit awards and performance unit awards settled with stock (i.e., all awards other than stock options and stock appreciation rights) ~~is 4.0~~was 2.5 million at September 30, 2017. To the extent necessary to be qualified performance-based compensation under Section 162(m) of the Internal Revenue Code (which we refer to as the IRC): (i) the maximum number of shares with respect to which options or stock appreciation rights or a combination thereof that may be granted during any calendar year to any person is 200,000; (ii) the maximum number of shares with respect to which awards other than options or stock appreciate rights that are intended to qualify as “performance-based compensation” under Section 162(m) of the Code and are denominated in shares of common stock that may be earned pursuant to such awards granted during any calendar year to any person under the LTIP will be 200,000; and (iii) the maximum amount that may be payable with respect to all awards that are intended to qualify as “performance-based compensation” under Section 162(m) of the Code and are denominated in cash granted during any calendar year to any person under the LTIP is $5.0 million.March 31, 2024.

The LTIP provides for the grant of stock options, which may be eithertax-qualified incentive stock options ornon-qualified stock options and stock appreciation rights. The compensation committee determines the period for the exercise of anon-qualified stock option,tax-qualified incentive stock option or stock appreciation right, provided that no option can be exercised later than seven years after its date of grant. The exercise price of anon-qualified stock option ortax-qualified incentive stock option and the base price of a stock appreciation right cannot be less than ~~100%~~100% of the fair market value of a share of our common stock on the date of grant, provided that the base price of a stock appreciation right granted in tandem with an option will be the exercise price of the related option.

- 21 -

Upon exercise, the option exercise price may be paid in cash, by the delivery of previously owned shares of our common stock, through anet-exercise arrangement, or through a broker-assisted cashless exercise arrangement. The compensation committee determines all of the terms relating to the exercise, cancellation or other disposition of an option or stock appreciation right upon a termination of employment, whether by reason of disability, retirement, death or any other reason. Stock option and stock appreciation right awards under the LTIP arenon-transferable.

On March ~~16, 2017,~~1, 2024, the compensation committee granted ~~1,650,400~~1,044,000 options under the ~~2014~~ LTIP to our officers and key employees that become exercisable at the rate of ~~34%~~34%, ~~33%~~33% and ~~33%~~33% on the anniversary date of the grant in ~~2020, 2021~~2027, 2028 and ~~2022,~~2029, respectively. On March ~~17, 2016,~~15, 2023, the compensation committee granted ~~2,576,700~~1,131,000 options under the ~~2014~~ LTIP to our officers and key employees that become exercisable at the rate of ~~34%~~34%, ~~33%~~33% and ~~33%~~33% on the anniversary date of the grant in ~~2019, 2020~~2026, 2027 and ~~2021,~~2028, respectively. The ~~2017~~2024 and ~~2016~~2023 options expire seven years from the date of grant, or earlier in the event of certain terminations of employment. ~~For~~Stock options granted in 2023 to certain ~~of our~~ executive officers age 55 or older ~~stock~~are not subject to forfeiture upon such officers' departure from the company after two years from date of grant. Stock options ~~awarded~~granted in ~~2017 and 2016~~2024 to certain executive officers are ~~no longer~~not subject to forfeiture upon such officers’ departure from the company ~~after two years from~~once they attain the ~~date~~age of ~~grant.~~62.

During the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, we recognized ~~$4.4~~ $15.1million and ~~$3.8~~$7.7 million, respectively, of compensation expense related to our stock option grants. ~~During the nine-month periods ended September 30, 2017 and 2016, we recognized $12.9 million and $10.9 million, respectively, of compensation expense related to our stock option grants.~~

For purposes of expense recognition, the estimated fair values of the stock option grants are amortized to expense over the options’ vesting period. We estimated the fair value of stock options at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:


	2017			2016			2024			2023
Expected dividend yield		2.8	%		3.0	%		1.0	%		1.2	%
Expected risk-free interest rate		2.3	%		1.6	%		4.2	%		3.6	%
Volatility		27.2	%		27.7	%		25.3	%		25.0	%
Expected life (in years)		5.0			5.5			5.5			5.5

Option valuation models require the input of highly subjective assumptions including the expected stock price volatility. The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable. Because our employee and director stock options have characteristics significantly different from those of traded options, and because changes in the selective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee and~~non-employee~~ ~~director stock options.~~ The weighted average fair value per option for all options granted during the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, as determined on the grant date using the Black-Scholes option pricing model, was ~~$11.42~~$69.55 and ~~$8.45,~~$46.25, respectively.

~~- 19 -~~

The following is a summary of our stock option activity and related information for ~~2017~~2024 (in millions, except exercise price and year data):


	Nine-month period ended September 30, 2017									Three-month period ended March 31, 2024
						Weighted									Weighted
						Average									Average
				Weighted		Remaining							Weighted		Remaining
	Shares			Average		Contractual		Aggregate		Shares			Average		Contractual		Aggregate
	Under			Exercise		Term		Intrinsic		Under			Exercise		Term		Intrinsic
	Option			Price		(in years)		Value		Option			Price		(in years)		Value
Beginning balance		10.3		$	41.40						7.9		$	123.85
Granted		1.6			56.85						1.0			243.54
Exercised		(1.2	)		32.58						(0.7	)		73.33
Forfeited or canceled		—			—						—			—

Ending balance		10.7		$	44.83		4.16	$	179.4		8.2		$	143.53		4.30	$	869.5

Exercisable at end of period		2.7		$	37.76		1.98	$	63.7		2.4		$	88.13		2.37	$	384.1

Ending vested and expected to vest		10.5		$	44.75		4.13	$	177.0

Ending unvested and expected to vest											5.2		$	164.31		5.10	$	448.7

Options with respect to ~~16.1~~ 10.8million shares (less any shares of restricted stock issued under the ~~LTIP—~~LTIP - see Note 10 to these unaudited consolidated financial statements) were available for grant under the LTIP at ~~September 30, 2017.~~March 31, 2024.

The total intrinsic value of options exercised during the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023 was ~~$28.3~~$123.4 million and ~~$14.9~~$77.5 million, respectively. As of ~~September 30, 2017,~~March 31, 2024, we had approximately ~~$47.4~~$163.4 million of total unrecognized compensation expense related to nonvested options. We expect to recognize that cost over a weighted average period of approximately four ~~years.~~years.

- 22 -

Other information regarding stock options outstanding and exercisable at ~~September 30, 2017~~March 31, 2024 is summarized as follows (in millions, except exercise price and year data):


																			Options Outstanding						Options Exercisable
																					Weighted
																					Average
																					Remaining		Weighted				Weighted
																					Contractual		Average				Average
					Options Outstanding						Options Exercisable								Number		Term		Exercise		Number		Exercise
Range of Exercise Prices	Range of Exercise Prices				Number Outstanding		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price		Range of Exercise Prices				Outstanding		(in years)		Price		Exercisable		Price
$	23.76	-	$	39.17		2.7		1.77	$	36.12		2.1	$	35.44	70.74	—	$	70.74		0.5		0.96	$	70.74		0.5	$	70.74
	43.71	-		46.17		4.5		5.02		44.77		—		—	79.59	—		79.59		0.7		1.95		79.59		0.8		79.59
	46.87	-		55.94		1.9		3.49		46.94		0.6		46.87	86.17	—		86.17		1.2		2.95		86.17		0.7		86.17
	56.86	-		56.86		1.6		6.46		56.86		—		—	127.90	—		127.90		1.4		3.96		127.90		0.4		127.90
															156.85	—		156.85		1.0		4.84		156.85		—		—
															158.56	—		161.14		1.1		4.96		158.65		—		—
															177.09	—		202.13		1.2		5.96		177.78		—		—
															243.54	—		243.54		1.1		6.92		243.54		—		—
$	23.76	-	$	56.86		10.7		4.16	$	44.83		2.7	$	37.76	70.74	—	$	243.54		8.2		4.30	$	143.53		2.4	$	88.13

~~Deferred Compensation~~

9. Deferred Compensation

We have a Deferred Equity Participation Plan (which we refer to as the DEPP), which is anon-qualified plan that generally provides for distributions to certain of our key executives when they reach age 62 (or theone-year anniversary of the date of the grant for participants over the age of 61 as of the grant date) or upon or after their actual ~~retirement.~~retirement if later. Under the provisions of the DEPP, we typically contribute cash in an amount approved by the compensation committee to a rabbi trust on behalf of the executives participating in the DEPP, and instruct the trustee to acquire a specified number of shares of our common stock on the open market or in privately negotiated transactions based on participant elections. Distributions under the DEPP may not normally be made until the participant reaches age 62 (or theone-year anniversary of the date of the grant for participants over the age of 61 as of the grant date) and are subject to forfeiture in the event of voluntary termination of employment prior to then. DEPP awards are generally made annually in the first quarter. In ~~the second quarter of 2016,~~ addition, we ~~made~~annually make awards undersub-plans of the DEPP for certain production staff, which generally provide for vesting and/or distributions no sooner than five years from the date of awards, although certain awards vest and/or distribute after the earlier of fifteen years or the participant reaching age ~~65.~~65. All contributions to the plan (includingsub-plans) deemed to be invested in shares of our common stock are distributed in the form of our common stock and all other distributions are paid in cash.

~~- 20 -~~

Our common stock that is issued to or purchased by the rabbi trust as a contribution under the DEPP is valued at historical cost, which equals its fair market value at the date of grant or date of purchase. When common stock is issued, we record an unearned deferred compensation obligation as a reduction of capital in excess of par value in the accompanying consolidated balance sheet, which is amortized to compensation expense ratably over the vesting period of the participants. Future changes in the fair market value of our common stock owed to the participants do not have any impact on the amounts recorded in our unaudited consolidated financial statements.

In the first ~~quarter~~quarters of ~~each of 2017~~2024 and ~~2016,~~2023, the compensation committee approved ~~$14.0~~$23.2 million and ~~$10.1~~$25.1 million, respectively, of awards in the aggregate to certain key executives under the DEPP that were contributed to the rabbi trust in the first ~~quarter 2017~~quarters of 2024 and ~~2016,~~2023, respectively. We contributed cash to the rabbi trust and instructed the trustee to acquire a specified number of shares of our common stock on the open market to fund these ~~2017~~2024 and ~~2016~~2023 awards. During each of the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, we charged ~~$2.6~~$4.0 million ~~and $2.1 million, respectively,~~ to compensation expense related to these awards. ~~During the nine-month periods ended September 30, 2017 and 2016, we charged $7.0 million and $5.5 million, respectively, to compensation expense related to these awards.~~

In the first ~~quarter~~quarters of ~~2017~~2024 and ~~in the second quarter of 2016,~~2023, the compensation committee approved ~~$4.0~~$2.3 million and ~~$13.6~~$3.0 million, respectively, of awards under thesub-plans referred to above, which were contributed to the rabbi trust in the first ~~quarter 2017~~quarters of 2024 and ~~second quarter 2016,~~2023, respectively. During the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, we charged ~~$0.5~~$0.5 million and ~~$0.4 million, respectively, to compensation expense related to these awards. During thenine-month~~ ~~period ended September 30, 2017 and 2016, we charged $1.4 million and $0.8~~$0.6 million, respectively, to compensation expense related to these awards. There were no distributions from thesub-plans during the ~~nine-month~~three-month period ended ~~September 30, 2017.~~March 31, 2024. There were $2.4 million of distributions from the sub‑plans during the three-month period ended March 31, 2023.

- 23 -

At ~~September 30, 2017~~March 31, 2024 and December 31, ~~2016,~~2023, we recorded ~~$58.4~~$106.0 million (related to ~~2.7~~2.2 million shares) and ~~$46.8~~$81.1 million (related to ~~2.4~~2.2 million shares), respectively, of unearned deferred compensation as a reduction of capital in excess of par value in the accompanying consolidated balance sheet. The total intrinsic value of our unvested ~~equity based~~equity-based awards under the plan at ~~September 30, 2017~~March 31, 2024 and December 31, ~~2016~~2023 was ~~$169.0~~$554.6 million and ~~$125.5~~$504.9 million, respectively. During the ~~nine-month period~~three-month periods ended ~~September 30, 2017, there were no distributions under the DEPP. During the nine-month period ended September 30, 2016,~~March 31, 2024 and 2023, cash and equity awards with an aggregate fair value of ~~$7.0~~$7.9 million and $6.1 million, respectively, were vested and distributed to executives under the ~~Age 62 Plan.~~DEPP.

We have a Deferred Cash Participation Plan (which we refer to as the DCPP), which is anon-qualified deferred compensation plan for certain key employees, other than executive officers, that generally provides for vesting and/or distributions no sooner than five years from the date of awards. Under the provisions of the DCPP, we typically contribute cash in an amount approved by the compensation committee to the rabbi trust on behalf of the executives participating in the DCPP, and instruct the trustee to acquire a specified number of shares of our common stock on the open market or in privately negotiated transactions based on participant elections. In the first ~~quarter~~quarters of ~~each of 2017~~2024 and ~~2016,~~2023, the compensation committee approved ~~$5.1~~$8.1 million and ~~$3.1~~$9.8 million, respectively, of awards in the aggregate to certain key executives under the DCPP that were contributed to the rabbi trust in ~~second quarter 2017~~the first quarters of 2024 and ~~2016,~~2023, respectively. During thethree-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, we charged ~~$0.7~~$4.8 million and ~~$0.4 million, respectively, to compensation expense related to these awards. During thenine-month~~ ~~periods ended September 30, 2017 and 2016, we charged $1.8 million and $1.1~~$3.8 million, respectively, to compensation expense related to these awards. There were no distributions from the DCPP during the ~~nine-month periods~~three-month period ended ~~September 30, 2017~~March 31, 2024. There were $0.2 million of distributions from the DCPP during the three-month period ended March 31, 2023.

10. Restricted Stock, Performance Share and ~~2016, respectively.~~Cash Awards

~~10.~~

~~Restricted Stock, Performance Share and Cash Awards~~

Restricted Stock Awards

As discussed in Note 8 to these unaudited consolidated financial statements, on May ~~16, 2017,~~10, 2022, our stockholders approved the LTIP, which replaced our previous stockholder-approved ~~2014~~2017 LTIP. The LTIP provides for the grant of a stock award either as restricted stock or as restricted stock ~~units.~~units to officers, employees and non-employee directors. In either case, the compensation committee may determine that the award will be subject to the attainment of performance measures over an established performance period. Stock awards and the related dividend equivalents arenon-transferable and subject to forfeiture if the holder does not remain continuously employed with us during the applicable restriction period or, in the case of a performance-based award, if applicable performance measures are not attained. The compensation committee will determine all of the terms relating to the satisfaction of performance measures and the termination of a restriction period, or the forfeiture and cancellation of a restricted stock award upon a termination of employment, whether by reason of disability, retirement, death or any other reason.

~~- 21 -~~

The agreements awarding restricted stock units under the LTIP will specify whether such awards may be settled in shares of our common stock, cash or a combination of shares and cash and whether the holder will be entitled to receive dividend equivalents, on a current or deferred basis, with respect to such award. Prior to the settlement of a restricted stock unit, the holder of a restricted stock unit will have no rights as a stockholder of the company. The maximum number of shares available under the LTIP for restricted stock, restricted stock units and performance unit awards settled with stock (i.e., all awards other than stock options and stock appreciation rights) is 4.0 million. At ~~September 30, 2017, 4.0~~March 31, 2024, 2.5 million shares were available for grant under the LTIP for such awards.

In the first ~~quarter~~quarters of ~~each of 2017~~2024 and ~~2016,~~2023, we granted ~~477,500~~345,000 and ~~466,600~~378,000 restricted stock units, respectively, to employees under the LTIP, with an aggregate fair value of ~~$26.8~~$83.9 million and ~~$20.4~~$67.0 million, respectively, at the date of grant. These ~~2017~~2024 and ~~2016~~2023 awards of restricted stock units ~~vest as follows: 477,500 units granted in first quarter 2017 and 466,600 units granted in first quarter 2016,~~ vest in full based on continued employment through March ~~16, 2021~~1, 2029 and March ~~11, 2020,~~15, 2028, respectively. For certain of our executive officers age 55 or older, restricted stock units awarded in 2017 and 2016 are not subject to forfeiture upon such officers’ departure from the company after two years from the date of grant.

We account for restricted stock awards at historical cost, which equals its fair market value at the date of grant, which is amortized to compensation expense ratably over the vesting period of the participants. Future changes in the fair market value of our common stock that is owed to the participants do not have any impact on the amounts recorded in our unaudited consolidated financial statements. During the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, we recognized ~~$4.7~~$12.9 million and ~~$4.2~~$9.7 million, respectively, to compensation expense related to restricted stock unit awards granted in ~~2007~~2017 through 2017. During the nine-month periods ended September 30, 2017 and 2016, we recognized $15.2 million and $14.2 million, respectively, to compensation expense related to restricted stock unit awards granted in 2007 through 2017.2023. The total intrinsic value of unvested restricted stock units at ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023 was ~~$107.6~~$402.0 million and ~~$79.7~~$387.5 million, respectively. During the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, equity awards (including accrued dividends) with an aggregate ~~fair~~ value of ~~$23.3~~$83.3 million and ~~$14.2~~$60.8 million, ~~was~~respectively, were vested and distributed to employees under this plan.

- 24 -

Performance Share Awards

On March ~~16, 2017~~1, 2024 and March ~~17, 2016,~~15, 2023, pursuant to the LTIP, respectively, the compensation committee approved ~~86,250~~58,000 and ~~72,900,~~58,000, respectively, of provisional performance ~~unit~~share awards, with an aggregate fair value of ~~$4.9~~$14.2 million and ~~$3.2~~$10.3 million, respectively, for future grants to our officers. Each performance ~~unit~~share award was equivalent to the value of one share of our common stock on the date such provisional award was approved. ~~In 2016, these awards were subject to aone-year~~At the end of the performance period, eligible participants will receive a number of earned shares based on the growth in adjusted EBITDAC per share (as defined in our ~~financial performance~~2024 Proxy Statement). Earned shares for the 2024 and 2023 provisional awards will fully vest based on continuous employment through March 1, 2027 and March 15, 2026, respectively, and will be settled in unrestricted shares of our common stock on a~~two-year~~ ~~vesting period.~~ one-for-one basis as soon as practicable thereafter. The ~~2017~~2024 and 2023 awards are subject to a three-year performance period that ~~begins~~began on January 1, ~~2017,~~2024 and 2023, respectively, and vest on the three-year anniversary of the date of grant (March ~~16, 2020)~~1, 2027 and March 15, 2026). ~~For the 2017~~ Performance share awards ~~at the discretion of the compensation committee and determined based on our performance, the eligible officer will be~~ granted ~~a percentage of the provisional performance unit award based on a new performance measure, growth~~ in ~~adjusted EBITDAC per share. Granted units for the 2017 provisional awards will fully vest based on continuous employment through March 16, 2020 and will be settled in shares of our common stock on aone-for-one~~ ~~basis as soon as practicable thereafter. For~~2023 to certain ~~of our~~ executive officers age 55 or older are not subject to forfeitures upon such officers' departure from the company after two years from date of grant. Performance share awards granted in ~~2017 and 2016~~2024 to certain executive officers are ~~no longer~~not subject to forfeiture upon such officers’ departure from the company ~~after two years from~~once they attain the ~~date~~age of ~~grant.~~62. In each case, the awards vest on a pro rata basis based on the number of months rounded up during which the officer was employed during the three-year performance period. During the three-month periods ended March 31, 2024 and 2023, we recognized $5.0 million and $4.7 million, respectively, to compensation expense related to performance share awards granted in 2020 through 2024. The total intrinsic value of unvested performance share awards at March 31, 2024 and 2023 was $94.9 million and $66.3 million, respectively. During the three-month periods ended March 31, 2024 and 2023, equity awards (including accrued dividends) with an aggregate fair value of $31.6 million and $28.9 million, respectively, were vested and distributed to employees under this plan.

Cash Awards

~~On March 16, 2017, pursuant~~Pursuant to our Performance Unit Program (which we refer to as the Program), ~~the compensation committee approved provisional cash awards of $14.3 million~~there were no units granted in the ~~aggregate for future grants to our officers~~three-month periods ended March 31, 2024 and key employees that are denominated in units (255,000 units in the aggregate), each of which was equivalent to the value of one share of our common stock on the date the provisional award was approved.2023. The Program consists of aone-year performance period based on our financial performance and a~~two-year~~three-year vesting ~~period.~~period measured from January 1 of the year of grant. At the discretion of the compensation committee and determined based on our performance, the eligible officer or key employee will be granted a percentage of the provisional cash award units that equates to the EBITAC growth achieved (as defined in the Program). At the end of the performance period, eligible participants will be granted a number of units based on achievement of the performance goal and subject to approval by the compensation committee. Granted units ~~for the 2017 provisional award~~ will fully vest based on continuous employment through ~~January 1, 2020.~~ the three-year vesting period. The ultimate award value will be equal to the trailing twelve-month price of our common stock, ~~on December 31, 2019,~~ multiplied by the number of units subject to the award, but limited to between 0.5 and 1.5 times the original value of the units determined as of the grant date. The fair value of the awarded units will be paid out in cash as soon as ~~practicable in 2020.~~practicable. If an eligible employee leaves us prior to the vesting date, the entire award will be forfeited. ~~We did not recognize any compensation expense during the nine-month period ended September 30, 2017 related to the 2017 provisional award under the Program.~~

~~- 22 -~~

On March ~~17, 2016,~~15, 2022, pursuant to the Program, the compensation committee approved provisional cash awards of ~~$17.4~~$19.9 million in the aggregate for future ~~grant~~grants to our officers and key employees that are denominated in units ~~(397,000~~(125,000 units in the aggregate), each of which was equivalent to the value of one share of our common stock on the date the provisional ~~awards were~~award was approved. Terms of the 2016 provisional awards were similar to the terms of the 2017 provisional awards. Based on our performance for 2016, we granted 383,000 units under the Program in first quarter 2017 that will fully vest on January 1, 2019. During the three-month ~~period~~periods ended ~~September 30, 2017,~~March 31, 2024 and 2023, we recognized ~~$2.6~~$3.4 million and $2.6 million, respectively, to compensation expense related to these awards. During the nine-month period ended September 30, 2017, we recognized $7.9 million to compensation expense related to these awards. We did not recognize any compensation expense during 2016 related to the 2016 awards.

On March ~~11, 2015,~~16, 2021, pursuant to the Program, the compensation committee approved provisional cash awards of ~~$14.6~~$18.8 million in the aggregate for future ~~grant~~grants to our officers and key employees that are denominated in units ~~(315,000~~(147,000 units in the aggregate), each of which was equivalent to the value of one share of our common stock on the date the provisional ~~awards were~~award was approved. ~~Terms of the 2015 provisional awards were similar to the terms of the 2016 provisional awards.~~ Based on our performance for ~~2015,~~2021, we granted ~~294,000~~143,000 units under the Program in the first quarter 2016 that will fully vest on January 1, 2018. During the three-month periods ended September 30, 2017 and 2016, we recognized $2.0 million and $1.7 million, respectively, to compensation expense related to these awards. During the~~nine-month~~ ~~periods ended September 30, 2017 and 2016, we recognized $7.0 million and $4.9 million, respectively, to compensation expense related to these awards.~~

~~On March 12, 2014, pursuant to the Program, the compensation committee approved provisional cash awards~~ of $10.8 million in the aggregate for future grant to our officers and key employees that are denominated in units (229,000 units in the aggregate), each of which was equivalent to the value of one share of our common stock on the date the provisional awards were approved. Terms of the 2014 provisional awards were similar to the terms of the 2015 provisional awards. Based on our performance for 2014, we granted 220,000 units under the Program in first quarter 20152022 that fully vested on January 1, ~~2017.~~2024. During the three-month period ended ~~September 30, 2016,~~March 31, 2023, we recognized ~~$1.2~~$3.3 million to compensation expense related to these awards.

During the ~~nine-month~~three-month period ended ~~September 30, 2016, we recognized $3.1 million, to compensation expense related to these awards.~~

~~During the nine-month period ended September 30, 2017,~~March 31, 2024, cash awards related to the ~~2014~~2021 provisional award with an aggregate fair value of ~~$9.3~~$25.4 million ~~(199,000~~(129,000 units in the aggregate) were vested and distributed to employees under the ~~Program.~~program. During the ~~nine-month~~three-month period ended ~~September 30, 2016,~~March 31, 2023, cash awards related to the ~~2013~~2020 provisional award with an aggregate fair value of ~~$11.2~~$24.7 million ~~(245,500~~(191,000 units in the aggregate) were vested and distributed to employees under the Program.

- 25 -

11. Derivatives and Hedging Activity

~~11.~~

~~Investments~~

~~The following is a summary of our investments, included in other noncurrent assets in the consolidated balance sheet, and the related funding commitments (in millions):~~

   September 30, 2017    December 31,
      Funding    2016
   Assets    Commitments    Assets
Chem-Mod LLC
   $ 4.0    $ —      $ 4.0
Chem-Mod International LLC
   2.0    —      2.0
Clean-coal investments:

Controlling interest in six limited liability companies that own fourteen 2009 Era Clean Coal Plants
   11.5    —      14.3
Non-controlling interest in one limited liability company that owns one 2011 Era Clean Coal Plant
   0.6    —      0.7
Controlling interest in seventeen limited liability companies that own nineteen 2011 Era Clean Coal Plants
   62.2    —      69.0
Other investments
   3.7    0.4    3.7






Total investments
   $ 84.0    $ 0.4    $ 93.7

~~- 23 -~~

~~12.~~

~~Derivatives and Hedging Activity~~

We are exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, we enter into various derivative instruments that reduce these risks by creating offsetting exposures. We generally do not enter into derivative transactions for trading or speculative purposes.

Foreign Exchange Risk Management

We are exposed to foreign exchange risk when we earn revenues, pay expenses, or enter into monetary intercompany transfers denominated in a currency that differs from our functional currency, or other transactions that are denominated in a currency other than our functional currency. We use foreign exchange derivatives, typically forward contracts and options, to reduce our overall exposure to the effects of currency fluctuations on cash flows. These exposures are hedged, on average, for less than ~~two~~three years.

Interest Rate Risk Management

We enter into various long-term debt agreements. We use interest rate derivatives, typically swaps, to reduce our exposure to the effects of interest rate fluctuations on the forecasted interest rates for up to ~~two~~three years into the future.

We have not received or pledged any collateral related to derivative arrangements at ~~September 30, 2017.~~March 31, 2024.

The notional and fair values of ~~derivative~~derivatives designated as hedging instruments are as follows at ~~September 30, 2017~~March 31, 2024 and December 31, ~~2016~~2023 (in millions):


	Notional Amount				Derivative Assets (1)				Derivative Liabilities (2)						Derivative Assets			Derivative Liabilities
	Sept 30, 2017		Dec 31, 2016		Sept 30, 2017		Dec 31, 2016		Sept 30, 2017		Dec 31, 2016		Notional		Balance Sheet	Fair		Balance Sheet	Fair
Instrument													Amount		Classification	Value		Classification	Value
At March 31, 2024
Interest rate contracts													$	—	Other current assets	$	—	Accrued compensation and other current liabilities	$	—
															Other noncurrent assets		—	Other noncurrent liabilities		—
Derivatives accounted for as hedges:
Interest rate contracts	$	200.0	$	200.0	$	1.6	$	11.4	$	0.1	$	—
Foreign exchange contracts (3)		6.8		4.1		6.3		2.1		10.3		17.5
Foreign exchange contracts (1)														57.3	Other current assets		3.2	Accrued compensation and other current liabilities		3.3
															Other noncurrent assets		9.2	Other noncurrent liabilities		1.8
Total	$	206.8	$	204.1	$	7.9	$	13.5	$	10.4	$	17.5	$	57.3		$	12.4		$	5.1
At December 31, 2023
Interest rate contracts													$	150.0	Other current assets	$	—	Accrued compensation and other current liabilities	$	5.7
															Other noncurrent assets		—	Other noncurrent liabilities		—
Foreign exchange contracts (1)														67.8	Other current assets		3.9	Accrued compensation and other current liabilities		3.9
															Other noncurrent assets		14.2	Other noncurrent liabilities		4.0
Total													$	217.8		$	18.1		$	13.6

~~(1)~~

Included within other current assets, $5.0 million and $12.5 million at September 30, 2017 and December 31, 2016, respectively, and other noncurrent assets, $2.9 million and $1.0 million at September 30, 2017 and December 31, 2016, respectively.

~~(2)~~

Included within other current liabilities, $9.0 million and $11.8 million at September 30, 2017 and December 31, 2016, respectively, and other noncurrent liabilities, $1.5 million and $5.7 million at September 30, 2017 and December 31, 2016, respectively.

~~(3)~~

(1)

Included within foreign exchange contracts at March 31, 2024 were $662.6 million of call options, offset with $662.6 million of put options, and $4.1 million of buy forwards, offset with $61.5 million of sell forwards. Included within foreign exchange contracts at December 31, 2023 were $331.3 million of call options, offset with $331.3 million of put options, and $5.5 million of buy forwards, offset with $73.3 million of sell forwards.

- 26 -

The effect of cash flow hedge accounting on accumulated other comprehensive loss for the three-month periods ended March 31, 2024 and 2023 were as follows (in millions):


							Amount of
				Amount of			Gain
				Gain (Loss)			Recognized
	Amount of			Reclassified			in Earnings
	Gain (Loss)			from			Related to
	Recognized in			Accumulated			Amount
	Accumulated			Other			Excluded
	Other			Comprehensive			from
	Comprehensive			Loss into			Effectiveness		Statement of Earnings
Instrument	Loss (1)			Earnings			Testing		Classification
Three-month period ended March 31, 2024
Interest rate contracts	$	0.7		$	(0.3	)	$	—	Interest expense
Foreign exchange contracts		(3.4	)		0.2			—	Commission revenue
					(0.5	)		0.3	Compensation expense
					(0.3	)		0.2	Operating expense
Total	$	(2.7	)	$	(0.9	)	$	0.5
Three-month period ended March 31, 2023
Interest rate contracts	$	(10.1	)	$	(0.3	)	$	—	Interest expense
Foreign exchange contracts		15.9			0.6			—	Commission revenue
					(0.5	)		0.6	Compensation expense
					(0.3	)		0.4	Operating expense
Total	$	5.8		$	(0.5	)	$	1.0

(1)

For the three-month period ended March 31, 2024, the amount excluded from the assessment of hedge effectiveness for our foreign exchange contracts at September 30, 2017 were $135.8 million of call options offset with $134.2 million of put options, and $54.9 million of buy forwards offset with $41.0 million of sell forwards. Included within foreign exchange contracts at December 31, 2016 were $78.3 million of call options offset with $78.3 million of put options, and $61.6 million of buy forwards offset with $57.5 million of sell forwards.

~~The amounts of derivative gains (losses)~~ recognized in accumulated other comprehensive loss was a gain of $0.3 million. For the three-month period ended March 31, 2023, the amount excluded from the assessment of hedge effectiveness for ~~the nine-month periods ended September 30, 2017 and 2016 were as follows (in millions):~~

   Commission Compensation    Operating    Interest
   Revenue Expense    Expense    Expense Total
September 30, 2017

Cash flow hedges:

Interest rate contracts
   $ —   $ —      $ —      $ (1.6 ) $ (1.6 )
Foreign exchange contracts
   7.9 2.3    1.6    —   11.8






Total
   $ 7.9 $ 2.3    $ 1.6    $ (1.6 ) $ 10.2






September 30, 2016

Cash flow hedges:

Interest rate contracts
   $ —   $ —      $ —      $ (3.3 ) $ (3.3 )
Foreign exchange contracts
   (17.3 ) 0.7    0.5    —   (16.1 )






Total
   $ (17.3 ) $ 0.7    $ 0.5    $ (3.3 ) $ (19.4 )

~~- 24 -~~

~~The amounts of derivative gains (losses) reclassified from~~our foreign exchange contracts recognized in accumulated other comprehensive loss ~~into income (effective portion) for the nine-month periods ended September 30, 2017 and 2016 were as follows (in millions):~~

was a gain of $0.5 million.

   Commission Compensation    Operating    Interest
   Revenue Expense    Expense    Expense    Total
September 30, 2017

Cash flow hedges:

Interest rate contracts
   $ —   $ —      $ —      $ —      $ —
Foreign exchange contracts
   (7.6 ) 1.1    0.8    —      (5.7 )








Total
   $ (7.6 ) $ 1.1    $ 0.8    $ —      $ (5.7 )








September 30, 2016

Cash flow hedges:

Interest rate contracts
   $ —   $ —      $ —      $ —      $ —
Foreign exchange contracts
   (5.7 ) 0.3    0.2    —      (5.2 )








Total
   $ (5.7 ) $ 0.3    $ 0.2    $ —      $ (5.2 )

We estimate that approximately ~~$0.1~~$10.7 million of pretax gain currently included within accumulated other comprehensive loss will be reclassified into earnings in the next twelve months. ~~The amount of gain (loss) recognized in earnings on the ineffective portion of derivatives for nine-months ended September 30, 2017~~

12.Commitments, Contingencies and ~~2016 was $0.4 million and $0.4 million, respectively.~~Off-Balance Sheet Arrangements

~~13.~~

~~Commitments, Contingencies andOff-Balance~~ ~~Sheet Arrangements~~

In connection with our investing and operating activities, we have entered into certain contractual obligations and commitments. Our future minimum cash payments, including interest, associated with our contractual obligations pursuant to the ~~note purchase agreements,~~Senior Notes, Note Purchase Agreements, Credit Agreement, Premium Financing Debt Facility, operating leases and purchase ~~commitments~~obligations at ~~September 30, 2017~~March 31, 2024 were as follows (in millions):


	Payments Due by Period
Contractual Obligations	2024			2025			2026			2027			2028			Thereafter			Total
Senior Notes	$	—		$	—		$	—		$	—		$	—		$	4,550.0		$	4,550.0
Note Purchase Agreements		—			200.0			640.0			478.0			200.0			2,005.0			3,523.0
Credit Agreement		108.2			—			—			—			—			—			108.2
Premium Financing Debt Facility		184.3			—			—			—			—			—			184.3
Interest on debt		240.4			374.0			355.0			336.7			317.2			4,285.8			5,909.1
Total debt obligations		532.9			574.0			995.0			814.7			517.2			10,840.8			14,274.6
Operating lease obligations		81.0			103.8			86.3			69.1			52.4			81.9			474.5
Less sublease arrangements		(1.7	)		(1.8	)		(1.6	)		(1.6	)		(1.1	)		(0.8	)		(8.6	)
Outstanding purchase obligations		103.5			68.1			28.2			21.6			15.1			47.1			283.6
Total contractual obligations	$	715.7		$	744.1		$	1,107.9		$	903.8		$	583.6		$	10,969.0		$	15,024.1

   Payments Due by Period
Contractual Obligations
   2017 2018 2019 2020 2021    Thereafter    Total
Note purchase agreements
   $ —   $ 100.0 $ 100.0 $ 100.0 $ 75.0    $ 2,423.0    $ 2,798.0
Credit Agreement
   75.0 —   —   —   —      —      75.0
Premium Financing Debt Facility
   156.4 —   —   —   —      —      156.4
Interest on debt
   34.3 119.8 115.1 110.7 105.7    468.7    954.3






Total debt obligations
   265.7 219.8 215.1 210.7 180.7    2,891.7    3,983.7
Operating lease obligations
   28.9 101.4 85.7 70.5 58.6    141.3    486.4
Less sublease arrangements
   (0.7 ) (0.4 ) (0.1 ) (0.1 ) —      —      (1.3 )
Outstanding purchase obligations
   19.2 35.9 19.2 7.7 2.2    —      84.2
Funding related to acquistion of DiBrina Group (see Note 3)
   42.8 —   —   —   —      —      42.8






Total contractual obligations
   $ 355.9 $ 356.7 $ 319.9 $ 288.8 $ 241.5    $ 3,033.0    $ 4,595.8

The amounts presented in the table above may not necessarily reflect our actual future cash funding requirements, because the actual timing of the future payments made may vary from the stated contractual obligation. ~~Outstanding purchase commitments in the table above include $0.7 million related to expenditures on our new corporate headquarters.~~

- 27 -

Senior Notes, Note Purchase Agreements, Credit Agreement and Premium Financing Debt Facility -See Note 6 to ~~our~~these unaudited consolidated financial statements for a summary of the amounts outstanding under the ~~note purchase agreements,~~Senior Notes, Note Purchase Agreements, the Credit Agreement and Premium Financing Debt Facility.

Operating Lease Obligations - Our corporate segment’s executive offices and certain subsidiary and branch facilities of our brokerage and risk management segments are located in a building we own at 2850 Golf Road, Rolling Meadows, Illinois, where we have approximately 360,000 square feet of space and will accommodate approximately 2,000 employees at peak capacity. Our prior headquarters was located at Two Pierce Place, Itasca, Illinois, where we lease approximately 306,000 square feet of space, or approximately 60% of the building. The lease commitment on the Itasca property expires February 28, 2018. Relating to the development of our new corporate headquarters, we expect to receive property tax related credits under a~~tax-increment~~ ~~financing note from Rolling Meadows and an Illinois state Economic~~

space.

~~- 25 -~~

~~Development for a Growing Economy (which we refer to as Edge) tax credit. Incentives from these two programs could total between $60.0 million and $80.0 million over a fifteen-year period.~~

We generally operate in leased premises at our other locations. Certain of these leases have options permitting renewals for additional periods. In addition to minimum fixed rentals, a number of leases contain annual escalation clauses which are generally related to increases in an inflation index.

We have leased certain office space to severalnon-affiliated tenants under operating sublease arrangements. In the normal course of business, we expect that certain of these leases will not be renewed or replaced. We adjust charges for real estate taxes and common area maintenance annually based on actual expenses, and we recognize the related revenues in the year in which the expenses are incurred. These amounts are not included in the minimum future rentals to be received in the contractual obligations table above.

Outstanding Purchase Obligations - ~~We typically do not have a material amount of outstanding purchase obligations at any point in time.~~ The amount disclosed in the contractual obligations table above represents the aggregate amount of unrecorded purchase obligations that we had outstanding at ~~September 30, 2017.~~March 31, 2024. These obligations represent agreements to purchase goods or services that were executed in the normal course of business.

Off-Balance Sheet Commitments-Our total unrecorded commitments associated with outstanding letters of credit, and financial guarantees ~~and funding commitments~~ as of ~~September 30, 2017~~March 31, 2024 were as follows (in millions):


																											Total
	Amount of Commitment Expiration by Period												Total Amounts		Amount of Commitment Expiration by Period												Amounts
Off-Balance Sheet Commitments	2017		2018		2019		2020		2021		Thereafter		Committed		2024		2025		2026		2027		2028		Thereafter		Committed
Letters of credit	$	—	$	—	$	—	$	—	$	—	$	20.7	$	20.7	$	—	$	—	$	—	$	—	$	—	$	23.7	$	23.7
Financial guarantees		—		0.2		0.2		0.2		0.2		1.3		2.1		1.4		0.2		0.1		0.1		—		—		1.8
Funding commitments		—		—		—		—		—		0.4		0.4

Total commitments	$	—	$	0.2	$	0.2	$	0.2	$	0.2	$	22.4	$	23.2	$	1.4	$	0.2	$	0.1	$	0.1	$	—	$	23.7	$	25.5

Since commitments may expire unused, the amounts presented in the table above do not necessarily reflect our actual future cash funding requirements.See the~~Off-Balance~~ Off‑Balance Sheet Debt section below for a discussion of our letters of credit. All of the letters of credit represent multiple year commitments that have annual, automatic renewing provisions and are classified by the latest commitment date.

Since January 1, 2002, we have acquired ~~450~~713 companies, all of which were accounted for using the acquisition method for recording business combinations. Substantially all of the purchase agreements related to these acquisitions contain provisions for potential earnout obligations. For all of our acquisitions made in the period from ~~2014~~2020 to ~~2017~~2024 that contain potential earnout obligations, such obligations are measured at fair value as of the acquisition date and are included on that basis in the recorded purchase price consideration for the respective acquisition. The amounts recorded as earnout payables are primarily based upon estimated future potential operating results of the acquired entities over atwo- to three-year period subsequent to the acquisition date. The aggregate amount of the maximum earnout obligations related to these acquisitions was ~~$563.9~~$1,935.9 million, of which ~~$274.3~~$1,240.5 million was recorded in our consolidated balance sheet as of ~~September 30, 2017~~March 31, 2024 based on the estimated fair value of the expected future payments to be ~~made.~~made, of which approximately $503.0 million can be settled in cash or stock at our option and $737.5 million must be settled in cash.

Off-Balance Sheet Debt-Our unconsolidated investment portfolio includes investments in enterprises where our ownership interest is between 1%1% and ~~50%~~50%, in which management has determined that our level of influence and economic interest is not sufficient to require consolidation. As a result, these investments are accounted for under the equity method. None of these unconsolidated investments had any outstanding debt at ~~September 30, 2017~~March 31, 2024 or December 31, ~~2016~~2023, that was recourse to us.

At ~~September 30, 2017,~~March 31, 2024, we had posted two letters of credit totaling ~~$9.7~~$9.3 million, in the aggregate, related to our~~self-insurance~~ self‑insurance deductibles, for which we had a recorded liability of ~~$12.4~~$12.9 million. We have an equity investment in arent-a-captive facility, which we use as a placement facility for certain of our insurance brokerage operations. At ~~September 30, 2017,~~March 31, 2024, we had posted ~~seven~~eight letters of credit totaling ~~$6.3~~$13.0 million to allow certain of our captive operations to meet minimum statutory surplus requirements ~~and for~~plus additional collateral related to premium and claim funds held in a fiduciary capacity, one letter of credit totaling ~~$4.2~~$0.9 million for collateral related to ~~support our potential obligation under~~claim

- 28 -

funds held in a ~~client’s insurance program~~fiduciary capacity by a recent acquisition and one letter of credit totaling ~~$0.5~~$0.5 million as a security deposit for a 2015 acquisition’s lease. These letters of credit have never been drawn upon.

~~- 26 -~~

Litigation, Regulatory and Taxation Matters - We routinely are ~~a defendant~~involved in ~~various~~ legal ~~actions~~proceedings, claims, disputes, regulatory matters and governmental inspections or investigations arising in the ordinary course of or incidental ~~to the nature of our business including but not limited to matters related to employment practices, alleged breaches ofnon-compete~~ or other restrictive covenants, theft of trade secrets, breaches of fiduciary duties and related causes of action. We are also periodically the subject of inquiries, investigations and reviews by regulatory and taxing authorities into various matters related to our business, including ~~our operational, compliance~~those noted below in this section. We record accruals in the unaudited consolidated financial statements for pending litigation when we determine that an unfavorable outcome is probable and ~~finance functions. Neither~~ the ~~outcomes~~amount of the loss can be reasonably estimated. For the matters we disclose that do not include an estimate of the amount of loss or range of losses, such an estimate is not possible or is immaterial, and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies, unless disclosed below. We currently believe that the ultimate outcome of these ~~matters nor their effect upon~~proceedings, individually and in the aggregate, will not materially harm our ~~business,~~ financial ~~condition or~~position, results of operations ~~can be determined~~or cash flows. However, legal proceedings and government investigations are subject to inherent uncertainties, and unfavorable rulings or other adverse events could occur, including the payment of substantial monetary damages or an injunction or other order prohibiting us from selling one or more products at ~~this time.~~

~~In July 2014, we were named~~all or in particular ways, precluding particular business practices or requiring other remedies, which may result in a ~~lawsuit that asserts that we and other defendants are liable for infringement~~material adverse impact on our business, results of a patent held by Nalco Company. The complaint sought a judgment of infringement, damages, costs and attorneys’ fees, and injunctive relief. Along with other defendants, we disputed the allegation of infringement and have defended this matter vigorously. We filed a motion to dismiss the complaint on behalf of all defendants, alleging no infringement of Nalco’s intellectual property. This motion, and similar motions attacking amended complaints filed by Nalco, were granted. On April 20, 2016, the court dismissed Nalco’s complaints and disallowed any further opportunity to amendoperations or refile. Nalco appealed this ruling to the Federal Circuit Court and we are expecting a ruling within the next few months. We continue to believe that the probability of a material loss is remote. However, litigation is inherently uncertain and it is not possible for us to predict the ultimate disposition of this proceeding.financial position.

~~Our micro-captive~~As previously disclosed, our IRC 831(b) (or “micro-captive”) advisory services ~~are~~business has been under ~~investigation~~audit by the ~~Internal Revenue Service (IRS). Additionally, the~~ IRS ~~has initiated audits for the 2012 tax year of over 100 of the micro-captive insurance companies organized and/or managed by us.~~since 2013. Among other matters, the IRS is investigating whether we have been acting as a tax shelter promoter in connection with these operations. ~~While~~Additionally, the IRS ~~has not made specific allegations relating~~is conducting a criminal investigation related to ~~our operations, if the IRS were to successfully assert~~IRC 831(b) micro-captive underwriting enterprises. We have been advised that the micro-captives organized and/or managed by us do not meet the requirements of IRC Section 831(b), we could be held liable to pay monetary claims by the IRS and/or our micro-captive clients, and our future earnings from our micro-captive operations could be materially adversely affected, any of which events, could negatively impact the overall captive business and adversely affect our consolidated results of operations and financial condition. Due to the fact that the IRS has not made any allegation against us or completed its audits of our clients, we are not ~~able to reasonably estimate~~a target of the ~~amount of any potential loss in connection~~criminal investigation. We are fully cooperating with ~~this investigation.~~both matters.

Contingent Liabilities -We purchase insurance to provide protection from errors and omissions (which we refer to as E&O) claims that may arise during the ordinary course of business. ~~We currently~~Currently we retain the first ~~$5.0~~$15.0 million of each and every E&O ~~claim. Our E&O insurance provides aggregate coverage for E&O losses~~claim up to ~~$175.0~~$15.0 million. In addition, we retain, in aggregate, up to another $2.0 million ~~in excess of our retained amounts.~~between $15.0 million and $100.0 million, plus up to another $10.0 million between $100.0 million and $225.0 million, and up to another $20.0 million between $225.0 million and $400.0 million. We have historically maintained self-insurance reserves for the portion of our E&O exposure that is not insured. We periodically determine a range of possible reserve levels using actuarial techniques that rely heavily on projecting historical claim data into the future. Our E&O reserve in the ~~September 30, 2017 unaudited~~March 31, 2024 consolidated balance sheet is above the lower end of the most recently determined actuarial range by ~~$1.5~~$8.1 million and below the upper end of the actuarial range by ~~$7.2~~$5.6 million. We can make no assurances that the historical claim data used to project the current reserve levels will be indicative of future claim activity. Thus, the E&O reserve level and corresponding actuarial range could change in the future as more information becomes known, which could materially impact the amounts reported and disclosed herein.

Tax-advantaged Investments No Longer Held -Between 1996 and 2007, we developed and then sold portions of our ownership in various energy related investments, many of which qualified for tax credits under IRC Section 29. We recorded tax benefits in connection with our ownership in these investments. At ~~September 30, 2017,~~March 31, 2024, we had exposure on ~~$108.2~~$108.0 million of previously earned tax credits. Under the Tax Cuts and Jobs Act, a portion of these previously earned tax credits were refunded in 2019 for tax year 2018, according to a specific formula. Under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), which was passed on March 27, 2020, we accelerated the refund of all remaining credits on April 17, 2020, and the remaining credits were refunded to us in the second quarter of 2020. In 2004, 2007 and 2009, the IRS examined several of these investments and all examinations were closed without any changes being proposed by the IRS. However, any future adverse tax audits, administrative rulings or judicial decisions could disallow previously claimed tax credits. ~~Because of~~

Due to the contingent nature of this exposure and our related assessment of its likelihood, no reserve has been recorded in our ~~September 30, 2017~~March 31, 2024 consolidated balance sheet related to this exposure.

13.Supplemental Disclosures of Cash Flow Information


	Three-month period ended March 31,
Supplemental disclosures of cash flow information (in millions):	2024		2023
Interest paid	$	104.4	$	60.1
Income taxes paid, net		71.7		53.5

- 2729 -

The following is a reconciliation of our end of period cash, cash equivalents, restricted cash and fiduciary cash balances as presented in the consolidated statement of cash flows for the three-month periods ended March 31, 2024 and 2023 (in millions):

~~14.~~

~~Accumulated Other Comprehensive Earnings (Loss)~~


	March 31,
	2024		2023
Cash and cash equivalents - non-restricted cash	$	1,571.6	$	1,345.7
Cash and cash equivalents - restricted cash		191.0		204.2
Total cash and cash equivalents		1,762.6		1,549.9
Fiduciary cash		5,318.2		4,541.1
Total cash, cash equivalents, restricted cash and fiduciary cash	$	7,080.8	$	6,091.0

Fiduciary cash is included in fiduciary assets in our consolidated balance sheet.

We have a qualified contributory savings and thrift 401(k) plan covering the majority of our domestic employees. For eligible employees who have met the plan’s age and service requirements to receive matching contributions, we historically have matched 100% of pre-tax and Roth elective deferrals up to a maximum of 5.0% of eligible compensation, subject to federal limits on plan contributions and not in excess of the maximum amount deductible for federal income tax purposes. Beginning in 2021, the amount matched by the company will be discretionary and annually determined by management. Employees must be employed and eligible for the plan on the last day of the plan year to receive a matching contribution, subject to certain exceptions enumerated in the plan document. Matching contributions are subject to a five-year graduated vesting schedule and can be funded in cash or company stock. We expensed (net of plan forfeitures) $26.1 million and $21.0 million related to the plan in the three-month periods ended March 31, 2024 and 2023, respectively. During 2023, our board of directors authorized the 5.0% employer matching contribution on eligible compensation to the 401(k) plan for the 2023 plan year to be funded with our common stock, which was funded in February 2024. During 2022, our board of directors authorized the 5.0% employer matching contribution on eligible compensation to the 401(k) plan for the 2022 plan year to be funded with our common stock, which was funded in February 2023.

14.Accumulated Other Comprehensive Loss

Theafter-tax components of our accumulated other comprehensive ~~earnings (loss)~~loss attributable to controlling interests consist of the ~~following:~~following (in millions):

   Foreign Fair Value of Accumulated
   Pension Currency Derivative Comprehensive
   Liability Translation Investments Earnings (Loss)
Balance as of December 31, 2016
   $ (47.3 ) $ (709.2 ) $ (7.1 ) $ (763.6 )
Net change in period
   3.7 249.3 11.7 264.7


Balance as of September 30, 2017
   $ (43.6 ) $ (459.9 ) $ 4.6 $ (498.9 )


				Foreign			Fair Value of			Accumulated
	Pension			Currency			Derivative			Comprehensive
	Liability			Translation			Investments			Loss
Balance as of December 31, 2023	$	(37.1	)	$	(867.4	)	$	112.4		$	(792.1	)
Net change in period		0.3			(155.8	)		(1.4	)		(156.9	)
Balance as of March 31, 2024	$	(36.8	)	$	(1,023.2	)	$	111.0		$	(949.0	)

The foreign currency translation during the ~~nine-month~~three-month period ended ~~September 30, 2017 primarily~~March 31, 2024 relates to the net impact of changes in the value of the local currencies relative to the U.S. dollar for our operations in the Australia, Canada, the Caribbean, India, New Zealand, the U.K. and other non-U.S. locations. The reporting currency for our financial statements is the U.S. dollar. Certain of our assets, liabilities, expenses and revenues are denominated in currencies other than the U.S. dollar, primarily the Australian dollar, British pound, Canadian dollar and New Zealand dollar. To prepare our unaudited consolidated financial statements, we must translate those assets, liabilities, expenses and revenues into U.S. dollars at the applicable exchange rates. Assets and liabilities of non-U.S. dollar functional currency operations are translated into U.S. dollars at end-of-period exchange rates while revenues, expenses and cash flows are translated at average monthly exchange rates over the period. Equity is translated at historical exchange rates and the ~~U.K.~~resulting cumulative translation adjustments are included as a component of accumulated other comprehensive loss in the consolidated balance sheet. The net change in the foreign currency translation during the three-month period ended March 31, 2024 primarily relates to goodwill (see Note 5 for the impact on goodwill) and amortizable intangible assets held by operations with a non-USD functional currency.

During the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016, $4.1~~2023, $0.5 million and ~~$4.1~~$1.3 million, ~~respectively,~~ of expense, respectively, related to the pension liability was reclassified from accumulated other comprehensive ~~earnings (loss)~~loss to compensation expense in the statement of earnings. During the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016, $5.7~~2023, $0.9 million and ~~$5.2~~$0.5 million of expense, respectively, related to the fair value of derivative investments, was reclassified from accumulated other comprehensive ~~earnings (loss)~~loss to the statement of earnings. During the~~nine-month~~ three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~ 2023, no amounts related to foreign currency translation were reclassified from accumulated other comprehensive ~~earnings (loss)~~loss to the statement of earnings.

- 30 -

15.Segment Information

~~15.~~

~~Segment Information~~

We have three reportable segments: brokerage, risk management and corporate.

The brokerage segment is primarily comprised of our retail and wholesale insurance and reinsurance brokerage operations. The brokerage segment (which comprises our retail property/casualty, wholesale, reinsurance, benefits and captive operations) generates revenues through commissions paid by ~~insurance underwriters~~underwriting enterprises and through fees charged to our clients. Our brokers, agents and administrators act as intermediaries between ~~insurers~~underwriting enterprises and ~~their customers~~our clients and we do not ~~generally~~ assume net underwriting risks.

The risk management segment provides contract claim settlement and administration services for ~~enterprises~~commercial, nonprofit, captive and public sector entities, and various organizations that choose to self-insure some or all of their property/casualty coverages and for ~~insurance companies~~underwriting enterprises that choose to outsource some or all of their property/casualty claims departments. These operations also provide claims management, loss control consulting and insurance property appraisal services. Revenues are principally generated on a negotiatedper-claim orper-service fee basis. Our risk management segment also provides risk management consulting services that are recognized as the services are delivered.

The corporate segment managesour clean energy and other investments. In addition, the corporate segment reports the financial information related to our debt and ~~certain~~other corporate costs, external acquisition-related expenses and ~~acquisition-related activities.~~the impact of foreign currency remeasurements.

Allocations of ~~investment~~interest income and certain expenses are based on reasonable assumptions and estimates primarily using revenue, headcount and other information. We allocate the provision for income taxes to the brokerage and risk management segments using the local country statutory rates. Reported operating results by segment would change if different methods were applied.

~~- 28 -~~

Financial information relating to our segments for the three-month ~~and nine-month~~ periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016 is~~2023 as follows

(in millions):


	Three-month period ended March 31,
	2024			2023
Brokerage
Total revenues	$	2,864.9		$	2,375.2
Earnings before income taxes	$	876.1		$	690.9
Identifiable assets at March 31, 2024 and 2023	$	56,371.6		$	40,919.9
Risk Management
Total revenues	$	391.4		$	330.8
Earnings before income taxes	$	53.2		$	45.5
Identifiable assets at March 31, 2024 and 2023	$	1,673.5		$	1,126.7
Corporate
Total revenues	$	0.4		$	0.1
Loss before income taxes	$	(156.6	)	$	(130.6	)
Identifiable assets at March 31, 2024 and 2023	$	2,930.8		$	3,047.8
Total
Total revenues	$	3,256.7		$	2,706.1
Earnings before income taxes	$	772.7		$	605.8
Identifiable assets at March 31, 2024 and 2023	$	60,975.9		$	45,094.4

Disaggregation of Revenue

We disaggregate our revenue from contracts with clients by type and geographic location for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

- 31 -

Revenues by type and segment for the three-month period ended March 31, 2024 are as follows (in millions):

   Three-month period Nine-month period
   ended September 30, ended September 30,
   2017 2016 2017 2016
Brokerage

Total revenues
   $ 953.7 $ 877.6 $ 2,830.3 $ 2,642.2


Earnings before income taxes
   $ 161.6 $ 149.1 $ 491.8 $ 427.3


Identifiable assets at September 30, 2017 and 2016
   $ 10,275.9 $ 8,972.7


Risk Management

Total revenues
   $ 200.2 $ 176.7 $ 571.5 $ 532.5


Earnings before income taxes
   $ 27.8 $ 21.5 $ 73.6 $ 67.9


Identifiable assets at September 30, 2017 and 2016
   $ 733.0 $ 679.6


Corporate

Total revenues
   $ 430.6 $ 428.0 $ 1,158.8 $ 1,035.1


Loss before income taxes
   $ (92.7 ) $ (75.7 ) $ (269.4 ) $ (207.1 )


Identifiable assets at September 30, 2017 and 2016
   $ 1,801.5 $ 1,548.0


			Risk
	Brokerage		Management		Corporate		Total
Revenues:
Commissions	$	1,993.6	$	—	$	—	$	1,993.6
Fees		606.7		344.5		—		951.2
Supplemental revenues		93.9		—		—		93.9
Contingent revenues		86.0		—		—		86.0
Interest income, premium finance revenues and other income		84.7		8.3		0.4		93.4
Revenues before reimbursements		2,864.9		352.8		0.4		3,218.1
Reimbursements		—		38.6		—		38.6
Total revenues	$	2,864.9	$	391.4	$	0.4	$	3,256.7

~~- 29 -~~

~~Review~~Revenues by ~~Independent Registered Public Accounting Firm~~

~~The interim consolidated financial statements at September 30, 2017~~geographical location and segment for the three-month period ended March 31, 2024 are as follows (in millions):


			Risk
	Brokerage		Management		Corporate		Total
Revenues:
United States	$	1,814.0	$	320.5	$	0.4	$	2,134.9
United Kingdom		584.8		14.0		—		598.8
Australia		68.0		53.0		—		121.0
Canada		103.1		1.7		—		104.8
New Zealand		41.7		2.2		—		43.9
Other foreign		253.3		—		—		253.3
Total revenues	$	2,864.9	$	391.4	$	0.4	$	3,256.7

Revenues by type and ~~nine-month periods ended September 30, 2017 and 2016 have been reviewed by Ernst & Young LLP, our independent registered public accounting firm, and their report is included herein.~~

~~Review Report of Independent Registered Public Accounting Firm~~

~~Board of Directors and Stockholders~~

~~Arthur J. Gallagher & Co.~~

~~We have reviewed the consolidated balance sheet of Arthur J. Gallagher & Co. as of September 30, 2017, and the related consolidated statements of earnings and comprehensive earnings~~segment for the three-month period ended March 31, 2023 are as follows (in millions):


			Risk
	Brokerage		Management		Corporate		Total
Revenues:
Commissions	$	1,747.4	$	—	$	—	$	1,747.4
Fees		412.7		293.0		—		705.7
Supplemental revenues		81.6		—		—		81.6
Contingent revenues		71.8		—		—		71.8
Interest income, premium finance revenues and other income		61.7		4.6		—		66.3
Other net revenues		—		—		0.1		0.1
Revenues before reimbursements		2,375.2		297.6		0.1		2,672.9
Reimbursements		—		33.2		—		33.2
Total revenues	$	2,375.2	$	330.8	$	0.1	$	2,706.1

Revenues by geographical location and ~~nine-month periods ended September 30, 2017 and 2016, the consolidated statement of cash flows~~segment for the ~~nine-month periods ended September 30, 2017 and 2016, and the consolidated statement of stockholders’ equity for the nine-month~~three-month period ended ~~September 30, 2017. These financial statements~~March 31, 2023 are ~~the responsibility of the Company’s management.~~as follows (in millions):

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Arthur J. Gallagher & Co. as of December 31, 2016, and the related consolidated statements of earnings, comprehensive earnings, stockholders’ equity, and cash flows for the year then ended, not presented herein, and we expressed an unqualified audit opinion on those consolidated financial statements in our report dated February 10, 2017. In our opinion, the accompanying consolidated balance sheet of Arthur J. Gallagher & Co. as of December 31, 2016, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.


			Risk
	Brokerage		Management		Corporate		Total
Revenues:
United States	$	1,475.3	$	280.1	$	0.1	$	1,755.5
United Kingdom		513.5		11.3		—		524.8
Australia		64.2		34.0		—		98.2
Canada		93.7		1.5		—		95.2
New Zealand		38.0		3.9		—		41.9
Other foreign		190.5		—		—		190.5
Total revenues	$	2,375.2	$	330.8	$	0.1	$	2,706.1

~~/s/ Ernst & Young LLP~~

- 32 -

~~Ernst & Young LLP~~

~~Chicago, Illinois~~

~~October 30, 2017~~

~~- 30 -~~Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

~~Item 2.~~

~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~

The discussion and analysis that follows relates to our financial condition and results of operations for the ~~nine-month~~three-month period ended ~~September 30, 2017.~~March 31, 2024. Readers should review this information in conjunction with the March 31, 2024 unaudited consolidated financial statements and notes included in Item 1 of Part I of this quarterly report onForm ~~10-Q~~10‑Q and the audited consolidated financial statements and notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in our annual report onForm 10-K for the year ending December 31, ~~2016.~~2023.

Prior Year Discussion of Results and Comparisons

For Information ~~Concerning Forward-Looking Statements~~

~~This report contains certain statements related to future~~on fiscal first quarter 2023 results ~~or states our intentions, beliefs~~ and ~~expectations or predictions for the future, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act~~similar comparisons, see “Item 7. Management’s Discussion and Analysis of ~~1995. Forward-looking statements relate to expectations or forecasts~~Financial Condition and Results of future events. Such statements use words such as “anticipate,” “believe,” “estimate,” “expect,” “contemplate,” “forecast,” “project,” “intend,” “plan,” “potential,” and other similar terms, and future or conditional tense verbs like “could,” “may,” “might,” “see,” “should,” “will” and “would.” You can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. For example, we may use forward-looking statements when addressing topics such as: market and industry conditions, including competitive and pricing trends; acquisition strategy; the expected impact of acquisitions and dispositions; the development and performanceOperations” of our services and products; changes in the composition or level of our revenues or earnings; our cost structure and the outcome of cost-saving or restructuring initiatives; future capital expenditures; future debt levels and anticipated actions to be taken in connection with maturing debt; future debt to earnings ratios; the outcome of contingencies; dividend policy; pension obligations; cash flow and liquidity; capital structure and financial losses; future actions by regulators; the outcome of existing regulatory actions, investigations, reviews or litigation; the impact of changes in accounting rules; financial markets; interest rates; foreign exchange rates; matters relating to our operations; income taxes; expectations regarding our investments, including our clean energy investments; and integrating recent acquisitions. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors.

~~Potential factors that could impact results include:~~

~~Failure to successfully and cost-effectively integrate recently acquired businesses and their operations or fully realize synergies from such acquisitions in the expected time frame;~~

~~Volatility or declines in premiums or other adverse trends in the insurance industry;~~

~~An economic downturn;~~

~~Competitive pressures in each of our businesses;~~

Risks that could negatively affect the success of our acquisition strategy, including continuing consolidation in our industry and growing interest in acquiring insurance brokers on the part of private equity firms, which could make it more difficult to identify targets and could make them more expensive, the risk that we may not receive timely regulatory approval of desired transactions, execution risks, integration risks, the risk of post-acquisition deterioration leading to intangible asset impairment charges, and the risk we could incur or assume unanticipated regulatory liabilities such as those relating to violations of anti-corruption and sanctions laws;

~~Our failure to attract and retain experienced and qualified personnel;~~

Risks arising from our international operations, including the risks posed by political and economic uncertainty in certain countries (such as the risks posed by Brexit), risks related to maintaining regulatory and legal compliance across multiple jurisdictions (such as those relating to violations of anti-corruption, sanctions and privacy laws), and risks arising from the complexity of managing businesses across different time zones, geographies, cultures and legal regimes;

~~Risks particular to our risk management segment, including any slowing of the trend toward outsourcing claims administration, and of the concentration of large amounts of revenue with certain clients;~~

~~The lower level of predictability inherent in contingent and supplemental commissions versus standard commissions;~~

~~Sustained increases in the cost of employee benefits;~~

~~- 31 -~~

Our failure to apply technology effectively in driving value for our clients through technology-based solutions, or failure to gain internal efficiencies and effective internal controls through the application of technology and related tools;

Our inability to recover successfully, including damage to our reputation and client relationships, should we experience a disaster, cybersecurity attack or other significant disruption to business continuity;

~~Damage to our reputation;~~

Our failure to comply with regulatory requirements, including those related to governance and control requirements in particular jurisdictions, international sanctions, or a change in regulations or enforcement policies that adversely affects our operations (for example, relating to insurance broker compensation methods or the failure of state and local governments to follow through on agreed-upon income tax credits or other tax related incentives, relating to our corporate headquarters);

Violations or alleged violations of the U.S. Foreign Corrupt Practices Act (FCPA), the U.K. Bribery Act 2010 or other anti-corruption laws and Foreign Account Tax Compliance provisions of the Hiring Incentives to Restore Employment Act, (which we refer to as FATCA);

~~The outcome of any existing or future investigation, review, regulatory action or litigation;~~

Our failure to adapt our services to changes resulting from the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act and any changes in such laws brought about by the current administration;

~~Unfavorable determinations related to contingencies and legal proceedings;~~

~~Improper disclosure of confidential, personal or proprietary data;~~

~~Significant changes in foreign exchange rates;~~

~~Changes to our financial presentation from new accounting estimates and assumptions (including as a result of the new lease and revenue recognition standards);~~

Risks related to our clean energy investments, including the risk of intellectual property claims, utilities switching from coal to natural gas, environmental and product liability claims, and environmental compliance costs;

~~Disallowance of Internal Revenue Code of 1986, as amended, (which we refer to as IRC) Section 29 or IRC Section 45 tax credits for us or our partners;~~

~~The risk that our outstanding debt adversely affects our financial flexibility and restrictions and limitations in the agreements and instruments governing our debt;~~

~~The risk we may not be able to receive dividends or other distributions from subsidiaries;~~

~~The risk of share ownership dilution when we issue common stock as consideration for acquisitions and for other reasons; and~~

~~Volatility of the price of our common stock.~~

Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of, and are based on information available to us on, the date of the applicable document. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to update any such statements or release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events.

~~- 32 -~~

A detailed discussion of the factors that could cause actual results to differ materially from our published expectations is contained under the heading “Risk Factors” in our filings with the Securities and Exchange Commission, including our Annual Report onForm ~~10-K~~10-Q for the fiscal ~~year~~three-month period ended ~~December~~March 31, ~~2016, and any other reports we file with the SEC in the future.~~2023.

Information RegardingNon-GAAP Measures and Other

In the discussion and analysis of our results of operations that follows, in addition to reporting financial results in accordance with GAAP, we provide information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS) ~~for the brokerage and risk management segments,~~ ,adjusted ~~revenues,~~revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic ~~revenue measures for each operating segment.~~revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this quarterly report onForm ~~10-Q.~~10‑Q. We believe that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to our results of operations and financial ~~condition.~~condition or because they provide investors with measures that our chief operating decision makers use when reviewing the company’s performance. See further below for definitions and additional reasons each of these measures is useful to investors. Our industry peers may provide similar supplementalnon-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. Thenon-GAAP information we provide should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in our most recent Proxy Statement, ~~beginning in first quarter 2017,~~ we make determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC. ~~Certain reclassifications have been made to the prior-year amounts reported in this quarterly report onForm 10-Q~~ ~~in order to conform them to the current-year presentation.~~

AdjustedNon-GAAP presentation- We believe that the adjusted~~Non-GAAP~~ ~~presentations~~ non-GAAP presentation of the current and prior ~~year~~period information presented on the following pages provides stockholders and other interested persons with useful information regarding certain financial metrics that may assist such persons in analyzing our operating results as they develop a future earnings outlook for us. Theafter-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period.

•

Adjusted ~~revenues and expenses~~measures -We define these measures as revenues (for the brokerage segment), revenues before reimbursements (for the risk management segment), net earnings, compensation expense and operating expense, respectively, each adjusted to exclude the ~~following:~~following, as applicable:

•

Net gains ~~realized from sales of books of business,~~(losses) on divestitures, which are primarily net proceeds received related to sales of books of business and other divestiture ~~transactions.~~transactions, such as the disposal of a business through sale or closure.

•

Acquisition integration costs, which include costs related to certain ~~of our~~ large acquisitions (including the acquisitions of Willis Re, Buck, Cadence Insurance, Eastern Insurance and My Plan Manager), outside the scope of our usual~~tuck-in~~ tuck‑in strategy, not expected to occur on an ongoing basis in the future once we fully assimilate the applicable acquisition. These costs are typically associated with redundant workforce, compensation expense related to amortization of certain retention bonus arrangements, extra lease space, duplicate services and external costs incurred to assimilate the acquisition ~~with~~into our IT related systems.

•

Transaction-related costs, which are primarily associated with the acquisition of Willis Re, Buck, Cadence Insurance, Eastern Insurance and My Plan Manager. These include costs related to regulatory filings, legal and accounting services, insurance and incentive compensation.

•

Workforce related charges, which primarily include severance costs (either accrued or paid) related to employee terminations and other costs associated with redundant workforce.

•

Lease termination related charges, which primarily include costs related to terminations of real estate leases and abandonment of leased space.

•

Acquisition related adjustments ~~which include~~principally relate to changes in estimated acquisition earnout payables adjustments ~~impacts of acquisition valuationtrue-ups,~~ ~~impairment charges~~ and acquisition related compensation charges. In addition, from time to time may include changes in balance sheet estimates arising from conforming accounting principles, purchase-related true-ups and other balance sheet adjustments made after the closing date; the net impact of these on first quarter 2024 results was approximately $26 million of revenues and approximately $28 million of compensation expense.

- 33 -

•

Amortization of intangible assets, which reflects the amortization of customer/expiration lists, non-compete agreements, trade names and other intangible assets acquired through our merger and acquisition strategy, the impact to amortization expense of acquisition valuation adjustments to these assets as well as non-cash impairment charges.

•

The impact of foreign currency translation, as applicable. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same ~~periods~~period in the prior year.

~~For~~•

Effective income tax rate impact, which levelizes the ~~litigation settlement and home office lease termination/move adjustments~~prior year for the ~~corporate segment, see page 55 for a more detailed description of the nature of these adjustments.~~change in current year tax rates.

•

Adjusted ratios-Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues.

~~- 33 -~~

Non-GAAP Earnings Measures

We believe that the presentation of EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, adjusted EPS and adjusted ~~EPS~~net earnings for the brokerage and risk management ~~segment,~~segments, each as defined below, provides a meaningful representation of our operating performance. Adjusted EPS is a performance measure and should not be used as a measure of our liquidity. We also consider EBITDAC and EBITDAC margin as ways to measure financial performance on an ongoing basis. In addition, adjusted EBITDAC, adjusted EBITDAC marginand adjusted EPS for the brokerage and risk management segments are presented to improve the comparability of our results between periods by eliminating the impact of the items that have a high degree of variability.

•

EBITDACand EBITDAC Margin- EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables and EBITDAC margin is EBITDAC divided by total ~~revenues.~~revenues (for the brokerage segment) and revenues before reimbursements (for the risk management segment). These measures for the brokerage and risk management segments provide a meaningful representation of our operating performance ~~and,~~ for the overall business and provide a meaningful way to measure its financial performance on an ongoing basis.

~~Adjusted~~ •

EBITDAC, as adjusted and ~~Adjusted~~ EBITDAC Margin, as adjusted -Adjusted EBITDAC is EBITDAC adjusted to exclude net gains ~~realized from sales of books of business,~~(losses) on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, legal and tax related costs and the period-over-period impact of foreign currency translation as applicable, and Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues (defined above)~~.These~~.These measures for the brokerage and risk management segments provide a meaningful representation of our operating performance, and are also presented to improve the comparability of our results between periods by eliminating the impact of the items that have a high degree of variability.

~~Adjusted~~ •

EPS, ~~for the Brokerage~~as adjusted and ~~Risk Management segments~~Net Earnings, as adjusted -~~We define this measure as~~Adjusted net earnings have been adjusted to exclude theafter-tax impact of net gains ~~realized from sales of books of business,~~(losses) on divestitures, acquisition integration costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, ~~and~~ acquisition related adjustments, ~~the period-over-period~~transaction related costs, amortization of intangible assets, legal and tax related costs and effective income tax rate impact, ~~of foreign currency translation,~~ as ~~applicable,~~applicable. Adjusted EPS is Adjusted Net Earnings divided by diluted weighted average shares outstanding. This measure provides a meaningful representation of our operating performance (and as such should not be used as a measure of our liquidity), and for the overall business is also presented to improve the comparability of our results between periods by eliminating the impact of the items that have a high degree of variability.

Organic Revenues (anon-GAAP measure)- For the brokerage segment, organic change in base commission and fee revenues, ~~excludes~~supplemental revenues and contingent revenues exclude the first twelve months of ~~net commission and fee~~such revenues generated from acquisitions and ~~the net commission and fee~~such revenues related to divested operations ~~disposed of~~ in each year presented. These ~~commissions and fees~~revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of our business in both the current and prior ~~year.~~period. In addition, organic change in base commission and fee ~~revenue organic growth~~revenues, supplemental revenues and contingent revenues excludes the~~period-over-period~~ period‑over‑period impact of foreign currency ~~translation.~~translation to improve the comparability of our results between periods. For the risk management segment, organic change in fee revenues excludes the first twelve months of ~~fee~~such revenues generated from acquisitions and ~~the fee~~such revenues related to divested operations ~~disposed of~~ in each year presented. In addition, change in organic growth in fee revenues excludes the period-over-period impact of foreign currency translation to improve the comparability of our results between ~~periods by eliminating the impact of the items that have a high degree of variability or are due to the limited-time nature of these revenue sources.~~periods.

These revenue items are excluded from organic revenues in order to determine a comparable, butnon-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and ~~beyond.~~beyond, as well as eliminating the impact of the items that have a high degree of variability. We have historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of our brokerage and risk management segments. We also believe that using

- 34 -

this~~non-GAAP~~ non‑GAAP measure allows readers of our financial statements to measure, analyze and compare the growth from our brokerage and risk management segments in a meaningful and consistent manner.

Reconciliation ofNon-GAAP Information Presented to GAAP Measures- This quarterly report onForm ~~10-Q~~10‑Q includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages 41 and 47), for adjusted revenues, adjusted ~~compensation expense~~EBITDAC and adjusted ~~operating expense, EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin,~~ diluted net earnings per share ~~(as adjusted) and~~(on page 37), for organic revenue ~~measures.~~

measures (on pages 42 and 47), respectively, for the brokerage and risk management segments, for adjusted compensation and operating expenses and adjusted EBITDAC margin, (on pages 43 and 44 for the brokerage segment and (on pages 48 and 49) for the risk management segment.

~~- 34 -~~

Other Information- Allocations of investment income and certain expenses are based on reasonable assumptions and estimates primarily using revenue, headcount and other information. We allocate the provision for income taxes to the brokerage and risk management segments using local statutory rates. As a result, the provision for income taxes for the corporate segment reflects the entire benefit to us of the IRC Section 45 credits produced, because that is the segment which generated the credits. The law that provides for IRC Section 45 credits substantially expires in December 2019 for our fourteen 2009 Era Plants and in December 2021 for our twenty 2011 Era Plants. We anticipate reporting an effective tax rate of approximately ~~34.0%~~24.5% to ~~36.0%~~26.5% in the brokerage segment and ~~36.0%~~25.0% to ~~38.0%~~27.0% in the risk management segment for the foreseeable future. Reported operating results by segment would change if different allocation methods were applied.

In the discussion that follows regarding our results of operations, we also provide the following ratios with respect to our operating results: pretax profit margin, compensation expense ratio and operating expense ratio. Pretax profit margin represents pretax earnings divided by total revenues. The compensation expense ratio is compensation expense divided by total revenues. The operating expense ratio is operating expense divided by total revenues.

Overview and ~~Third~~First Quarter ~~2017~~2024 Highlights

We are engaged in providing insurance brokerage, ~~and~~reinsurance brokerage, consulting services, and third-party property/casualty claims settlement and administration services to entities inand individuals around the ~~U.S. and abroad.~~world. In the ~~nine-month~~three-month period ended ~~September 30, 2017,~~March 31, 2024, we generated approximately ~~70%~~66% of our revenues for the combined brokerage and risk management segments domestically and ~~30%~~34% internationally, primarily in Australia, ~~Bermuda,~~ Canada, ~~the Caribbean,~~ New Zealand and the U.K. We have three reportable segments: brokerage, risk management and ~~corporate, which~~corporate. The brokerage and risk management segments contributed approximately ~~62%, 13%~~88% and ~~25%~~12%, respectively, to revenues during the~~nine-month~~ three-month period ended ~~September 30, 2017.~~March 31, 2024. The corporate segment did not generate revenues in the three-month period ended March 31, 2024. Our major sources of operating revenues are commissions, fees and supplemental and contingent ~~commissions~~revenues from brokerage operations and fees from risk management operations. ~~Investment~~Interest income is ~~generated from invested~~earned on cash, cash equivalents and fiduciary cash and ~~fiduciary funds, clean energy and other investments, and interest income~~revenues are generated from premium financing.

We ~~typically cite~~use the Council of Insurance Agents and Brokers (which we refer to as CIAB) insurance pricing quarterly survey ~~at this time~~ as an indicator of the ~~current~~ insurance rate environment, but the third quarter 2017 survey had not been published as of the filing date of this report. We anticipate that the trends noted in the second quarter 2017 survey will likely be similar to what will be reported for third quarter 2017. The second quarter 2017 CIAB survey indicated that commercial property/casualty rates decreased by 2.8%, on average, across all lines. The first quarter 2017 CIAB survey indicated that commercial property/casualty rates decreased by 2.5%, on average, across all lines. In 2017, while we see retail property/casualty rates as a headwind, we do see property/casualty exposure growth offsetting this partially. We also see employment growth along with complexity and uncertainty surrounding the Affordable Care Act as tailwinds for our employee benefit units. In addition, our history of strong new business generation, solid retentions and enhanced value-added services for our carrier partners should all result in further organic growth opportunities around the world. Internationally, we see a similar property/casualty market in U.K. retail and Canada, more softening in London Specialty, but an improving market in Australia and New Zealand. Overall, we believe a modestly-down rate environment can be partially mitigated through exposure unit growth in certain lines and by our professionals demonstrating our expertise and high quality value added capabilities by strengthening our clients’ insurance portfolio in these times. Based on our experience, insurance carriers appear to be making rational pricing decisions. In lines and accounts where rate increases or decreases are warranted, the underwriters are pricing accordingly. As carriers reach their profitability targets in lines, rates may start to flatten. In summary, in this environment, rate decreased at a moderate pace, clients can still obtain coverage, businesses continue to stay in standard-line markets and there is adequate capacity in the insurance market. It is not clear whether the rate retraction will continue due to uncertainty of the current economic environment. The CIAB represents the leading domestic and international insurance brokers, who write approximately 85% of the commercial property/casualty premiums in the U.S. The first quarter 2024 survey had not been published as of the filing date of this report. The fourth quarter 2023 survey indicated that commercial property/casualty rates increased by 7.0% on average and we expect a similar trend to be noted when the CIAB's first quarter 2024 survey report is issued, which would indicate overall continued price firming and hardening in most lines of business.

~~Accounting Changes~~

~~Note 2~~We believe increases in property/casualty rates will continue for the remainder of 2024 due to rising loss costs, a firm reinsurance market, increased frequency of catastrophe losses, prior year reserve volatility and social inflation. If loss trends deteriorate over the coming quarters, including due to the impact of natural catastrophes, or if profitability concerns on casualty lines increase, it could lead to a more difficult rate and conditions environment in certain lines. The combination of increasing insurable values (due in large part to inflation, including wage inflation), a tight labor market and lower unemployment is likely contributing to increases in client insured exposures. Additionally, we expect that our ~~consolidated financial statements included~~history of strong new business generation, solid retentions and enhanced value‑added services for our carrier partners should all result in ~~this report contains information regarding~~further organic growth opportunities around the ~~potential impact~~world. Overall, we believe that in a ~~new revenue recognition accounting standard could have~~positive rate environment with increasing exposures, our professionals can demonstrate their expertise and high‑quality, value-added capabilities by strengthening our clients’ insurance portfolios and delivering insurance and risk management solutions within our clients’ budgets. Based on our ~~future financial presentation. This new standard will~~experience, insurance and reinsurance carriers appear to be effective for us in first quarter 2018. While we do not believe adoption of the new standard will have a material impact on the presentation of our consolidated results of operations on an annual basis, there could be a material impact on the presentation of our results in certain quarters due to timing changesmaking rational pricing decisions and are providing adequate capacity in the ~~recognition~~market for nearly all lines of certain revenue and expenses. As a result, we may experience a different “seasonality” in our quarterly results after adoption of the new standard, with a shift in the timing of revenue recognized from the second, third and fourth quarters to the first quarter.

coverage.

- 35 -

Summary of Financial Results - Three-Month Periods Ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023

See the reconciliations ofnon-GAAP measures on page ~~37.~~38.


(Dollars in millions, except per share data)	3rd Quarter 2017						3rd Quarter 2016						Change
(In millions, except per share data)																			1st Quarter 2024						1st Quarter 2023						Change
																			Reported			Adjusted			Reported			Adjusted			Reported			Adjusted
	Reported			Adjusted			Reported			Adjusted			Reported			Adjusted			GAAP			Non-GAAP			GAAP			Non-GAAP			GAAP			Non-GAAP
Brokerage Segment	GAAP			Non-GAAP			GAAP			Non-GAAP			GAAP			Non-GAAP
Revenues	$	953.7		$	953.1		$	877.6		$	883.5			9	%		8	%	$	2,864.9		$	2,838.4		$	2,375.2		$	2,380.2			21	%		19	%
Organic revenues				$	900.0					$	869.5						3.5	%				$	2,526.5					$	2,320.1						8.9	%
Net earnings	$	107.6					$	97.7						10	%				$	652.6					$	515.3						27	%
Net earnings margin		11.3	%					11.1	%					+15 bpts						22.8	%					21.7	%				+ 109 bpts
Adjusted EBITDAC				$	266.2					$	246.3						8	%				$	1,132.3					$	957.5						18	%
Adjusted EBITDAC margin					27.9	%					27.9	%					+5 bpts						39.9	%					40.2	%				- 34 bpts
Diluted net earnings per share	$	0.59		$	0.67		$	0.55		$	0.61			7	%		10	%	$	2.92		$	3.63		$	2.37		$	3.13			23	%		16	%

Risk Management Segment
Revenues	$	200.2		$	200.2		$	176.7		$	177.7			13	%		13	%
Revenues before reimbursements																			$	352.8		$	353.0		$	297.6		$	296.4			19	%		19	%
Organic revenues				$	195.5					$	177.4						10.2	%				$	330.8					$	291.9						13.3	%
Net earnings	$	17.1					$	13.2						30	%				$	39.3					$	33.5						17	%
Net earnings margin		8.5	%					7.5	%					+107 bpts
Net earnings margin (before reimbursements)																				11.1	%					11.3	%				- 12 bpts
Adjusted EBITDAC				$	35.8					$	30.0						19	%				$	72.7					$	56.9						28	%
Adjusted EBITDAC margin					17.9	%					16.9	%					+100 bpts
Adjusted EBITDAC margin (before reimbursements)																							20.6	%					19.2	%				+ 139 bpts
Diluted net earnings per share	$	0.09		$	0.09		$	0.07		$	0.08			29	%		13	%	$	0.18		$	0.20		$	0.15		$	0.16			20	%		25	%

Corporate Segment
Diluted net earnings per share	$	0.03		$	0.05		$	0.07		$	0.08			-57	%		-38	%

Diluted net loss per share																			$	(0.36	)	$	(0.34	)	$	(0.28	)	$	(0.27	)
Total Company
Diluted net earnings per share	$	0.71		$	0.81		$	0.69		$	0.77			3	%		5	%	$	2.74		$	3.49		$	2.24		$	3.02			22	%		16	%
Total Brokerage and Risk Management Segment
Diluted net earnings per share																			$	3.10		$	3.83		$	2.52		$	3.29			23	%		16	%

~~Summary of Financial Results - Nine-Month Periods Ended September 30, 2017 and 2016~~

~~See the reconciliations ofnon-GAAP~~ ~~measures on page 38.~~

(Dollars in millions, except per share data)    Nine Months 2017 Nine Months 2016 Change
   Reported Adjusted Reported Adjusted Reported Adjusted
Brokerage Segment
   GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP
Revenues
   $ 2,830.3 $ 2,827.2 $ 2,642.2 $ 2,609.2 7 % 8 %
Organic revenues
   $ 2,657.3 $ 2,567.3 3.5 %
Net earnings
   $ 325.2 $ 278.5 17 %
Net earnings margin
   11.5 % 10.5 % +95 bpts
Adjusted EBITDAC
   $ 791.1 $ 715.1 11 %
Adjusted EBITDAC margin
   28.0 % 27.4 % +57 bpts
Diluted net earnings per share
   $ 1.75 $ 1.93 $ 1.54 $ 1.75 14 % 10 %
Risk Management Segment

Revenues
   $ 571.5 $ 571.5 $ 532.5 $ 533.3 7 % 7 %
Organic revenues
   $ 563.4 $ 532.6 5.8 %
Net earnings
   $ 45.8 $ 42.1 9 %
Net earnings margin
   8.0 % 7.9 % +10 bpts
Adjusted EBITDAC
   $ 99.1 $ 91.7 8 %
Adjusted EBITDAC margin
   17.3 % 17.2 % +15 bpts
Diluted net earnings per share
   $ 0.25 $ 0.25 $ 0.23 $ 0.24 9 % 4 %
Corporate Segment

Diluted net earnings (loss) per share
   $ (0.03 ) $ 0.06 $ 0.02 $ 0.08 -250 % -25 %
Total Company

Diluted net earnings per share
   $ 1.97 $ 2.24 $ 1.79 $ 2.07 10 % 8 %

~~- 36 -~~

~~In our corporate segment, netafter-tax~~ ~~earnings from our clean energy investments were $38.3 million and $88.2 million in thethree-month~~ ~~andnine-month~~ periods ended September 30, 2017, respectively. Net after tax earnings from our clean energy investments were $39.3 million and $85.8 million in the three-month and nine-month periods ended September 30, 2016. We anticipate our clean energy investments to generate between $123.0 million and $129.0 million in net earnings in 2017. We expect to use the additional cash flow generated by these earnings to continue our mergers and acquisition strategy in our core brokerage and risk management operations.

The following provides information that management believes is helpful when comparing revenues before reimbursements, net earnings, EBITDAC and diluted net earnings per share for the three-month period ended ~~September 30, 2017~~March 31, 2024 with the same period in ~~2016.~~2023. In addition, these tables ~~provides~~provide reconciliations to the most comparable GAAP measures for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share. Reconciliations of EBITDAC for the brokerage and risk management segments are provided on pages 4041 and 47, respectively, of this filing.

- 36 -

For the Three-Month Periods Ended ~~September 30,~~March 31 Reported GAAP to AdjustedNon-GAAP ~~Reconciliatio~~ Reconciliation:



																			Diluted Net					Revenues Before																		Diluted Net Earnings
	Revenues						Net Earnings						EBITDAC						Earnings Per Share					Reimbursements						Net Earnings (Loss)						EBITDAC						(Loss) Per Share
Segment	2017			2016			2017			2016			2017			2016			2017		2016			2024			2023			2024			2023			2024			2023			2024			2023			Chg
	(in millions)						(in millions)						(in millions)											(in millions)						(in millions)						(in millions)
Brokerage, as reported	$	953.7		$	877.6		$	107.6		$	97.7		$	256.5		$	229.9		$	0.59	$	0.55		$	2,864.9		$	2,375.2		$	652.6		$	515.3		$	1,048.7		$	880.6		$	2.92		$	2.37			23	%
Gains on book sales		(0.6	)		(1.1	)		(0.4	)		(0.8	)		(0.6	)		(1.1	)		—		—
Net (gains) losses on divestitures																									(0.5	)		(0.2	)		(0.4	)		(0.2	)		(0.5	)		(0.2	)		—			—
Acquisition integration		—			—			2.3			6.7			3.5			9.4			0.01		0.04			—			—			36.4			39.7			48.7			51.2			0.16			0.18
Workforce & lease termination		—			—			3.4			4.3			5.1			6.0			0.02		0.02
Workforce and lease termination																									—			—			8.7			11.8			11.6			15.4			0.04			0.06
Acquisition related adjustments		—			—			8.3			1.3			1.7			0.6			0.05		—			(26.0	)		—			(8.3	)		25.6			23.8			11.4			(0.02	)		0.12
U.K. statutory income tax rate change		—			—			—			(1.5	)		—			—			—		(0.01	)
Amortization of intangible assets																									—			—			116.7			89.1			—			—			0.53			0.41
Effective income tax rate impact																									—			—			—			(2.5	)		—			—			—			(0.01	)
Levelized foreign currency translation		—			7.0			—			0.7			—			1.5			—		0.01			—			5.2			—			(0.9	)		—			(0.9	)		—			—

Brokerage, as adjusted *		953.1			883.5			121.2			108.4			266.2			246.3			0.67		0.61			2,838.4			2,380.2			805.7			677.9			1,132.3			957.5			3.63			3.13			16	%

Risk Management, as reported		200.2			176.7			17.1			13.2			35.7			29.2			0.09		0.07			352.8			297.6			39.3			33.5			70.5			55.9			0.18			0.15			20	%
Workforce & lease termination		—			—			—			0.3			0.1			0.4			—		0.01
Net (gains) losses on divestitures																									0.2			(0.1	)		0.1			(0.1	)		0.2			(0.1	)		—			—
Acquisition integration																									—			—			0.5			0.4			0.7			0.6			—			—
Workforce and lease termination																									—			—			0.9			0.5			1.2			0.6			—			—
Acquisition related adjustments		—			—			(0.4	)		—			—			—			—		—			—			—			0.1			0.1			0.1			0.1			—			—
Amortization of intangible assets																									—			—			4.5			1.1			—			—			0.02			0.01
Levelized foreign currency translation		—			1.0			—			0.2			—			0.4			—		—			—			(1.1	)		—			(0.1	)		—			(0.2	)		—			—

Risk Management, as adjusted *		200.2			177.7			16.7			13.7			35.8			30.0			0.09		0.08			353.0			296.4			45.4			35.4			72.7			56.9			0.20			0.16			25	%

Corporate, as reported		430.6			428.0			13.1			19.5			(53.4	)		(42.7	)		0.03		0.07			0.4			0.1			(79.2	)		(62.2	)		(62.7	)		(61.6	)		(0.36	)		(0.28	)
Litigation settlement		—			—			—			3.5			—			4.4			—		0.01
Home office lease termination/move		—			—			3.7			—			6.2			—			0.02		—

Corporate, as adjusted *		430.6			428.0			16.8			23.0			(47.2	)		(38.3	)		0.05		0.08

Transaction-related costs																									—			—			2.7			3.3			3.2			4.4			0.02			0.01
Corporate, as adjusted*																									0.4			0.1			(76.5	)		(58.9	)		(59.5	)		(57.2	)		(0.34	)		(0.27	)
Total Company, as reported	$	1,584.5		$	1,482.3		$	137.8		$	130.4		$	238.8		$	216.4		$	0.71	$	0.69		$	3,218.1		$	2,672.9		$	612.7		$	486.6		$	1,056.5		$	874.9		$	2.74		$	2.24			22	%

Total Company, as adjusted *	$	1,583.9		$	1,489.2		$	154.7		$	145.1		$	254.8		$	238.0		$	0.81	$	0.77		$	3,191.8		$	2,676.7		$	774.6		$	654.4		$	1,145.5		$	957.2		$	3.49		$	3.02			16	%

Total Brokerage & Risk
Management, as reported	$	1,153.9		$	1,054.3		$	124.7		$	110.9		$	292.2		$	259.1		$	0.68	$	0.62		$	3,217.7		$	2,672.8		$	691.9		$	548.8		$	1,119.2		$	936.5		$	3.10		$	2.52			23	%

Total Brokerage & Risk
Management, as adjusted *	$	1,153.3		$	1,061.2		$	137.9		$	122.1		$	302.0		$	276.3		$	0.76	$	0.69		$	3,191.4		$	2,676.6		$	851.1		$	713.3		$	1,205.0		$	1,014.4		$	3.83		$	3.29			16	%

For the three-month period ended September 30, 2017, the net pretax impact of the brokerage segment adjustments totals $20.5 million, with a corresponding net adjustment to the provision for income taxes of $6.9 million relating to these items. The net pretax impact of the risk management segment adjustments totals ($0.5) million, with a corresponding adjustment to the benefit for income taxes of ($0.1) million relating to these items. The pretax impact of the corporate segment adjustment totals $6.2 million, with a corresponding adjustment to the provision for income taxes of $2.5 million relating to that item.

For the three-month period ended September 30, 2016, the net pretax impact of the brokerage segment adjustments totals $17.2 million, with a corresponding net adjustment to the provision for income taxes of $6.5 million relating to these items. The pretax impact of the risk management segment adjustment totals $0.7 million, with a corresponding adjustment to the provision for income taxes of $0.2 million relating to that item. The pretax impact of the corporate segment adjustment totals $4.4 million, with a corresponding adjustment to the provision for income taxes of $0.9 million relating to that item.

*For the three-month period ended March 31, 2024, the pretax impact of the brokerage segment adjustments totals $204.7 million, mostly due to non-cash period expenses related to intangible amortization, with a corresponding adjustment to the provision for income taxes of $51.6 million relating to these items. For the three-month period ended March 31, 2024, the pretax impact of the risk management segment adjustments totals $8.5 million, with a corresponding adjustment to the provision for income taxes of $2.4 million relating to these items. For the three-month period ended March 31, 2024, the pretax impact of the corporate segment adjustments totals $3.2 million, with a corresponding adjustment to the benefit for income taxes of $0.5 million. A detailed reconciliation of the 2024 provision (benefit) for income taxes is shown on page 38.

*For the three-month period ended March 31, 2023, the pretax impact of the brokerage segment adjustments totals $219.0 million, with a corresponding adjustment to the provision for income taxes of $56.4 million relating to these items. For the three-month period ended March 31, 2023, the pretax impact of the risk management segment adjustments totals $2.6 million, with a corresponding adjustment to the provision for income taxes of $0.7 million relating to these items. For the three-month period ended March 31, 2023, the pretax impact of the corporate segment adjustments totals $4.4 million, with a corresponding adjustment to the benefit for income taxes of $1.1 million. A detailed reconciliation of the 2023 provision (benefit) for income taxes is shown on page 38.

- 37 -

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share


(In millions except share and per share data)
	Earnings			Provision						Net Earnings (Loss)			Net Earnings (Loss)
	(Loss)			(Benefit)						Attributable to			Attributable to			Diluted Net
	Before Income			for Income			Net Earnings			Noncontrolling			Controlling			Earnings (Loss)
	Taxes			Taxes			(Loss)			Interests			Interests			per Share
Quarter Ended March 31, 2024
Brokerage, as reported	$	876.1		$	223.5		$	652.6		$	4.3		$	648.3		$	2.92
Net (gains) on divestitures		(0.5	)		(0.1	)		(0.4	)		—			(0.4	)		—
Acquisition integration		48.7			12.3			36.4			—			36.4			0.16
Workforce and lease termination		11.6			2.9			8.7			—			8.7			0.04
Acquisition related adjustments		(11.1	)		(2.8	)		(8.3	)		(3.0	)		(5.3	)		(0.02	)
Amortization of intangible assets		156.0			39.3			116.7			—			116.7			0.53
Brokerage, as adjusted	$	1,080.8		$	275.1		$	805.7		$	1.3		$	804.4		$	3.63
Risk Management, as reported	$	53.2		$	13.9		$	39.3		$	—		$	39.3		$	0.18
Net losses on divestitures		0.2			0.1			0.1			—			0.1			—
Acquisition integration		0.7			0.2			0.5			—			0.5			—
Workforce and lease termination		1.2			0.3			0.9			—			0.9			—
Acquisition related adjustments		0.1			—			0.1			—			0.1			—
Amortization of intangible assets		6.3			1.8			4.5			—			4.5			0.02
Risk Management, as adjusted	$	61.7		$	16.3		$	45.4		$	—		$	45.4		$	0.20
Corporate, as reported	$	(156.6	)	$	(77.4	)	$	(79.2	)	$	—		$	(79.2	)	$	(0.36	)
Transaction-related costs		3.2			0.5			2.7			—			2.7			0.02
Corporate, as adjusted	$	(153.4	)	$	(76.9	)	$	(76.5	)	$	—		$	(76.5	)	$	(0.34	)
Quarter Ended March 31, 2023
Brokerage, as reported	$	690.9		$	175.6		$	515.3		$	0.8		$	514.5		$	2.37
Net (gains) on divestitures		(0.2	)		—			(0.2	)		—			(0.2	)		—
Acquisition integration		51.2			11.5			39.7			—			39.7			0.18
Workforce and lease termination		15.5			3.7			11.8			—			11.8			0.06
Acquisition related adjustments		33.4			7.8			25.6			—			25.6			0.12
Amortization of intangible assets		120.2			31.1			89.1			—			89.1			0.41
Effective income tax rate impact		—			2.5			(2.5	)		—			(2.5	)		(0.01	)
Levelized foreign currency translation		(1.1	)		(0.2	)		(0.9	)		—			(0.9	)		—
Brokerage, as adjusted	$	909.9		$	232.0		$	677.9		$	0.8		$	677.1		$	3.13
Risk Management, as reported	$	45.5		$	12.0		$	33.5		$	—		$	33.5		$	0.15
Net (gains) on divestitures		(0.1	)		—			(0.1	)		—			(0.1	)		—
Acquisition integration		0.6			0.2			0.4			—			0.4			—
Workforce and lease termination		0.6			0.1			0.5			—			0.5			—
Acquisition related adjustments		0.1			—			0.1			—			0.1			—
Amortization of intangible assets		1.5			0.4			1.1			—			1.1			0.01
Levelized foreign currency translation		(0.1	)		—			(0.1	)		—			(0.1	)		—
Risk Management, as adjusted	$	48.1		$	12.7		$	35.4		$	—		$	35.4		$	0.16
Corporate, as reported	$	(130.6	)	$	(68.4	)	$	(62.2	)	$	(0.7	)	$	(61.5	)	$	(0.28	)
Transaction-related costs		4.4			1.1			3.3			—			3.3			0.01
Corporate, as adjusted	$	(126.2	)	$	(67.3	)	$	(58.9	)	$	(0.7	)	$	(58.2	)	$	(0.27	)

~~For the Nine-Month Periods Ended September 30, Reported GAAP to AdjustedNon-GAAP~~ ~~Reconciliation~~

   Revenues Net Earnings EBITDAC Diluted Net
Earnings
Per Share
Segment
   2017 2016 2017 2016 2017 2016 2017 2016
   (in millions) (in millions) (in millions)
Brokerage, as reported
   $ 2,830.3 $ 2,642.2 $ 325.2 $ 278.5 $ 762.4 $ 674.4 $ 1.75 $ 1.54
Gains on book sales
   (3.1 ) (4.7 ) (2.2 ) (3.3 ) (3.1 ) (4.7 ) (0.01 ) (0.02 )
Acquisition integration
   —   —   6.6 25.1 9.7 35.5 0.04 0.14
Workforce & lease termination
   —   —   9.8 8.6 14.4 12.1 0.05 0.05
Acquisition related adjustments
   —   —   18.2 9.6 7.7 3.2 0.10 0.06
U.K. statutory income tax rate change
   —   —   —   (1.5 ) —   —   —   (0.01 )
Levelized foreign currency translation
   —   (28.3 ) —   (2.1 ) —   (5.4 ) —   (0.01 )


Brokerage, as adjusted *
   2,827.2 2,609.2 357.6 314.9 791.1 715.1 1.93 1.75


Risk Management, as reported
   571.5 532.5 45.8 42.1 98.5 89.9 0.25 0.23
Workforce & lease termination
   —   —   0.3 0.9 0.6 1.3 —   0.01
Acquisition related adjustments
   —   —   (0.4 ) —   —   —   —   —
Levelized foreign currency translation
   —   0.8 —   0.2 —   0.5 —   —


Risk Management, as adjusted *
   571.5 533.3 45.7 43.2 99.1 91.7 0.25 0.24


Corporate, as reported
   1,158.8 1,035.1 15.0 23.4 (155.3 ) (112.0 ) (0.03 ) 0.02
Litigation settlement
   —   —   8.8 11.6 11.1 14.6 0.05 0.06
Home office lease termination/move
   —   —   7.9 —   13.2 —   0.04 —


Corporate, as adjusted *
   1,158.8 1,035.1 31.7 35.0 (131.0 ) (97.4 ) 0.06 0.08


Total Company, as reported
   $ 4,560.6 $ 4,209.8 $ 386.0 $ 344.0 $ 705.6 $ 652.3 $ 1.97 $ 1.79


Total Company, as adjusted *
   $ 4,557.5 $ 4,177.6 $ 435.0 $ 393.1 $ 759.2 $ 709.4 $ 2.24 $ 2.07


Total Brokerage & Risk

Management, as reported
   $ 3,401.8 $ 3,174.7 $ 371.0 $ 320.6 $ 860.9 $ 764.3 $ 2.00 $ 1.77


Total Brokerage & Risk

Management, as adjusted *
   $ 3,398.7 $ 3,142.5 $ 403.3 $ 358.1 $ 890.2 $ 806.8 $ 2.18 $ 1.99

For the nine-month period ended September 30, 2017, the net pretax impact of the brokerage segment adjustments totals $47.8 million, with a corresponding net adjustment to the provision for income taxes of $15.4 million relating to these items. There was no net pretax impact of the risk management segment adjustments, with a corresponding adjustment to the provision for income taxes of $0.1 million relating to these items. The pretax impact of the corporate segment adjustment totals $24.3 million, with a corresponding adjustment to the provision for income taxes of $7.6 million relating to these items.

For the nine-month period ended September 30, 2016, the net pretax impact of the brokerage segment adjustments totals $53.6 million, with a corresponding net adjustment to the provision for income taxes of $17.2 million relating to these items. The pretax impact of the risk management segment adjustments totals $1.7 million, with a corresponding adjustment to the provision for income taxes of $0.6 million relating to these items. The pretax impact of the corporate segment adjustment totals $14.6 million, with a corresponding adjustment to the provision for income taxes of $3.0 million relating to that item.

- 38 -

Results of Operations

Brokerage

The brokerage segment accounted for ~~62%~~88% of our revenues during the ~~nine-month~~three-month period ended ~~September 30, 2017.~~March 31, 2024. Our brokerage segment is primarily comprised of retail, wholesale and ~~wholesale~~Gallagher Re. Our brokerage ~~operations. Our retail brokerage operations negotiate~~segment generates revenues by:

(i)

Identifying, negotiating and ~~place~~placing all forms of insurance coverage, as well as providing data analytics, risk-shifting, risk-sharing and risk-mitigation consulting services, principally related to property/casualty,~~employer-provided~~ life, health, welfare and disability insurance. We also provide these services through, or in conjunction with, other unrelated agents and brokers, consultants and management advisors;

(ii)

Identifying, negotiating and placing all forms of reinsurance coverage, as well as providing capital markets services, including acting as underwriter, with respect to insurance linked securities, weather derivatives, capital raising and selected merger and acquisition advisory activities;

(iii)

Acting as an agent or broker for multiple underwriting enterprises by providing services such as sales, marketing, selecting, negotiating, underwriting, servicing and placing insurance coverage on their behalf;

(iv)

Providing consulting services related to health and welfare benefits, voluntary benefits, executive benefits, compensation, retirement planning, institutional investment and fiduciary, actuarial, compliance, private insurance exchange, human resources technology, communications and ~~retirement solutions, principally for middle-market commercial, industrial, public entity, religious~~benefits administration; and~~not-for-profit~~ ~~entities. Many of our retail brokerage customers choose~~

(v)

Providing management and administrative services to ~~place their insurance with insurance underwriters, while others choose to use alternative vehicles~~captives, pools, risk-retention groups, healthcare exchanges, small underwriting enterprises, such as ~~self-insurance pools, risk retention groups or captive insurance companies. Our wholesale brokerage operations assist our brokers~~accounting, claims and loss processing assistance, feasibility studies, actuarial studies, data analytics and other ~~unaffiliated brokers and agents in the placement~~administrative services.

The primary source of ~~specialized, unique andhard-to-place~~ ~~insurance programs.~~

~~Our primary sources of compensation~~revenues for our ~~retail~~ brokerage services ~~are~~is commissions ~~paid by insurance companies, which are usually~~from underwriting enterprises, based ~~upon~~on a percentage of ~~the premium~~premiums paid by ~~insureds,~~our clients, or fees received from clients based on an agreed level of service usually in lieu of commissions. Commissions are fixed at the contract effective date and ~~brokerage and advisory fees paid directly by our clients. For wholesale brokerage services, we~~ generally ~~receive a share of the commission paid to the retail broker from the insurer. Commission rates~~ are ~~dependent~~based on a percentage of premiums for insurance coverage or employee headcount for employer sponsored benefit plans. Commissions depend upon a large number of factors, including the type of ~~insurance,~~risk being placed, the particular underwriting enterprise’s demand, the expected loss experience of the particular risk of coverage, and historical benchmarks surrounding the level of effort necessary for us to place and service the insurance ~~company underwriting~~contract. Rather than being tied to the ~~policy and whether we act as a retail or wholesale broker. Advisory~~amount of premiums, fees are ~~dependent~~most often based on ~~the extent and value~~an expected level of ~~services we provide.~~effort to provide our services. In addition, under certain circumstances, both retail brokerage and wholesale brokerage services receive supplemental and contingent ~~commissions. A supplemental commission~~revenues. Supplemental revenue is ~~a commission~~revenue paid by an ~~insurance carrier~~underwriting enterprise that is above the base ~~commissions~~commission paid, is determined by the ~~insurance carrier~~underwriting enterprise and is established annually in advance of the contractual period based on historical performance criteria. ~~A contingent commission~~Contingent revenue is ~~a commission~~revenue paid by an ~~insurance carrier~~underwriting enterprise based on the overall profit and/or volume of the business placed with that ~~insurance carrier~~underwriting enterprise during a particular calendar year and is determined after the contractual period.

Litigation, Regulatory and ~~Regulatory~~Taxation Matters -~~A portion of~~

Aspreviously disclosed, our brokerage business includes the development and management of “micro-captives,” through operations we acquired in 2010 in our acquisition of the assets of Tribeca Strategic Advisors (Tribeca). A “captive” is an insurance company that insures the risks of its owner, affiliates or a group of companies. Micro-captives are captive insurance companies that are subject to taxation only on net investment income under IRC ~~Section~~ 831(b)~~. Our micro-captive~~ (or “micro-captive”) advisory services ~~are~~business has been under ~~investigation~~audit by the ~~Internal Revenue Service (IRS). Additionally, the~~ IRS ~~has initiated audits for the 2012 tax year of over 100 of the micro-captive insurance companies organized and/or managed by us.~~since 2013. Among other matters, the IRS is investigating whether we have been acting as a tax shelter promoter in connection with these operations. ~~While~~Additionally, the IRS ~~has not made specific allegations relating~~is conducting a criminal investigation related to ~~our operations or thepre-acquisition~~ ~~activities of Tribeca, if the IRS were to successfully assert~~IRC 831(b) micro-captive underwriting enterprises. We have been advised that the micro-captives organized and/or managed by us do not meet the requirements of IRC Section 831(b), we could be subject to monetary claims by the IRS and/or our micro-captive clients, and our future earnings from our micro-captive operations could be materially adversely affected, any of which events could negatively impact the overall captive business and adversely affect our consolidated results of operations and financial condition. We may also experience lost earnings due to the negative effect of an extended IRS investigation on our clients’ and potential clients’ businesses. Annual renewals for micro-captive clients generally occur during the fourth quarter. Therefore, any negative impact from this investigation would likely have a disproportionate impact on fourth-quarter results. In the period from 2014 to 2016, our micro-captive operations contributed less than $3.5 million of net earnings and less than $5.0 million in EBITDAC to our consolidated results in any one year. Due to the fact that the IRS has not made any allegation against us or completed its audits of our clients, we are not ~~able to reasonably estimate~~a target of the ~~amount of any potential loss in connection~~criminal investigation. We are fully cooperating with ~~this investigation.~~

both matters.

- 39 -

Financial information relating to our brokerage segment results for the three-month ~~and nine-month periods~~period ended ~~September 30, 2017 as~~March 31, 2024 compared to the same ~~periods~~period in ~~2016,~~2023, is as follows (in millions, except per share, percentages and workforce data):


	Three-month period									Nine-month period
	ended September 30,									ended September 30,									Three-month period ended March 31,
Statement of Earnings	2017			2016			Change			2017			2016			Change			2024			2023			Change
Commissions	$	662.6		$	612.9		$	49.7		$	1,943.3		$	1,842.3		$	101.0		$	1,993.6		$	1,747.4		$	246.2
Fees		222.3			198.6			23.7			632.7			556.0			76.7			606.7			412.7			194.0
Supplemental commissions		39.9			35.3			4.6			115.9			106.8			9.1
Contingent commissions		13.5			16.4			(2.9	)		96.4			96.7			(0.3	)
Investment income		14.8			13.3			1.5			38.9			35.7			3.2
Gains realized on books of business sales		0.6			1.1			(0.5	)		3.1			4.7			(1.6	)

Supplemental revenues																				93.9			81.6			12.3
Contingent revenues																				86.0			71.8			14.2
Interest income, premium finance revenues and other income																				84.7			61.7			23.0
Total revenues		953.7			877.6			76.1			2,830.3			2,642.2			188.1			2,864.9			2,375.2			489.7

Compensation		548.4			504.0			44.4			1,621.7			1,515.1			106.6			1,476.8			1,206.1			270.7
Operating		148.8			143.7			5.1			446.2			452.7			(6.5	)		339.4			288.5			50.9
Depreciation		14.9			14.2			0.7			45.9			42.6			3.3			32.8			27.9			4.9
Amortization		68.9			62.5			6.4			196.9			183.3			13.6			156.0			120.2			35.8
Change in estimated acquisition earnout payables		11.1			4.1			7.0			27.8			21.2			6.6			(16.2	)		41.6			(57.8	)

Total expenses		792.1			728.5			63.6			2,338.5			2,214.9			123.6			1,988.8			1,684.3			304.5

Earnings before income taxes		161.6			149.1			12.5			491.8			427.3			64.5			876.1			690.9			185.2
Provision for income taxes		54.0			51.4			2.6			166.6			148.8			17.8			223.5			175.6			47.9

Net earnings		107.6			97.7			9.9			325.2			278.5			46.7			652.6			515.3			137.3
Net earnings (loss) attributable to noncontrolling interests		(0.3	)		(0.2	)		(0.1	)		7.1			4.1			3.0

Net earnings attributable to noncontrolling interests																				4.3			0.8			3.5
Net earnings attributable to controlling interests	$	107.9		$	97.9		$	10.0		$	318.1		$	274.4		$	43.7		$	648.3		$	514.5		$	133.8

Diluted net earnings per share	$	0.59		$	0.55		$	0.04		$	1.75		$	1.54		$	0.21		$	2.92		$	2.37		$	0.55


Other Information
Change in diluted net earnings per share		7	%		25	%					14	%		24	%					23	%		9	%
Growth in revenues		9	%		5	%					7	%		7	%					21	%		12	%
Organic change in commissions and fees		4	%		2	%					3	%		3	%					9	%		9	%
Compensation expense ratio		58	%		57	%					57	%		57	%					52	%		51	%
Operating expense ratio		16	%		16	%					16	%		17	%					12	%		12	%
Effective income tax rate		33	%		34	%					34	%		35	%					26	%		25	%
Workforce at end of period (includes acquisitions)											19,715			18,539						39,989			33,623
Identifiable assets at September 30										$	10,275.9		$	8,972.7

Identifiable assets at March 31																			$	56,371.6		$	40,919.9
EBITDAC
Net earnings	$	107.6		$	97.7		$	9.9		$	325.2		$	278.5		$	46.7		$	652.6		$	515.3		$	137.3
Provision for income taxes		54.0			51.4			2.6			166.6			148.8			17.8			223.5			175.6			47.9
Depreciation		14.9			14.2			0.7			45.9			42.6			3.3			32.8			27.9			4.9
Amortization		68.9			62.5			6.4			196.9			183.3			13.6			156.0			120.2			35.8
Change in estimated acquisition earnout payables		11.1			4.1			7.0			27.8			21.2			6.6			(16.2	)		41.6			(57.8	)


EBITDAC	$	256.5		$	229.9		$	26.6		$	762.4		$	674.4		$	88.0		$	1,048.7		$	880.6		$	168.1

- 40 -

The following provides information that management believes is helpful when comparing EBITDAC and adjusted EBITDAC for the three-month ~~and nine-month periods~~period ended ~~September 30, 2017~~March 31, 2024 compared to the same ~~periods~~period in ~~2016~~2023 (in millions):


	Three-month period ended September 30,									Nine-month period ended September 30,									Three-month period ended March 31,
	2017			2016			Change			2017			2016			Change			2024			2023			Change
Net earnings, as reported	$	107.6		$	97.7			10.1	%	$	325.2		$	278.5			16.8	%	$	652.6		$	515.3			27	%
Provision for income taxes		54.0			51.4						166.6			148.8						223.5			175.6
Depreciation		14.9			14.2						45.9			42.6						32.8			27.9
Amortization		68.9			62.5						196.9			183.3						156.0			120.2
Change in estimated acquisition earnout payables		11.1			4.1						27.8			21.2						(16.2	)		41.6

EBITDAC		256.5			229.9			11.6	%		762.4			674.4			13.1	%		1,048.7			880.6			19	%
Gains from books of business sales		(0.6	)		(1.1	)					(3.1	)		(4.7	)
Net (gains) on divestitures																				(0.5	)		(0.2	)
Acquisition integration		3.5			9.4						9.7			35.5						48.7			51.2
Workforce and lease termination related charges																				11.6			15.4
Acquisition related adjustments		1.7			0.6						7.7			3.2						23.8			11.4
Workforce and lease termination related charges		5.1			6.0						14.4			12.1
Levelized foreign currency translation		—			1.5						—			(5.4	)					—			(0.9	)

EBITDAC, as adjusted	$	266.2		$	246.3			8.1	%	$	791.1		$	715.1			10.6	%	$	1,132.3		$	957.5			18	%

Net earnings margin, as reported		11.3	%		11.1	%		+ 15 bpts			11.5	%		10.5	%		+95 bpts			22.8	%		21.7	%	+ 109 bpts

EBITDAC margin, as adjusted		27.9	%		27.9	%		+ 5 bpts			28.0	%		27.4	%		+ 57 bpts			39.9	%		40.2	%	- 34 bpts

Reported revenues	$	953.7		$	877.6					$	2,830.3		$	2,642.2					$	2,864.9		$	2,375.2

Adjusted revenues - see pages 37 and 38	$	953.1		$	883.5					$	2,827.2		$	2,609.2

Adjusted revenues - see page 37																			$	2,838.4		$	2,380.2

Acquisition integration costs include costs related to our July 2, 2014 acquisition of Noraxis Capital Corporation (which we refer to as Noraxis), our June 16, 2014 acquisition of the Crombie/OAMPS operations (which we refer to as Crombie/OAMPS), our April 1, 2014 acquisition of Oval Group of Companies (which we refer to as Oval), our November 14, 2013 acquisition of the Giles Group of Companies (which we refer to as Giles) and our August 1, 2015 acquisition of William Gallagher Associates Insurance Brokers (which we refer to as WGA) that are not expected to occur on an ongoing basis in the future once we fully assimilate these acquisitions. These costs relate to the~~on-boarding~~ of employees, communication system conversion costs, related performance compensation, redundant workforce, extra lease space, duplicate services and external costs incurred to assimilate the acquired businesses with our IT related systems. The WGA integration costs in the three-month and nine-month periods ended September 30, 2017 totaled $0.4 million and $1.1 million, respectively, and were primarily related to retention and incentive compensation. The Crombie/OAMPS integration costs in the three-month and nine-month periods ended September 30, 2017 totaled $0.3 million and $1.1 million, respectively, and were primarily related to technology costs and incentive compensation. The Giles and Oval integration costs in the~~three-month~~ and nine-month periods ended September 30, 2017 totaled $2.8 million and $7.5 million, respectively, and were primarily related to the consolidation of offices in the U.K., technology costs, branding and incentive compensation. The WGA integration costs in the three-month and nine-month periods ended September 30, 2016 totaled $2.0 million and $4.4 million, respectively, and were primarily related to retention and incentive compensation. The Noraxis integration costs in the three-month and nine-month periods ended September 30, 2016 totaled $0.7 million and $1.5 million, respectively, and were primarily related to the consolidation of offices, technology costs and incentive compensation. The Crombie/OAMPS integration costs in the three-month and nine-month periods ended September 30, 2016 totaled $0.9 million and $4.0 million, respectively, and were primarily related to technology costs and incentive compensation. The Giles and Oval integration costs in the~~three-month~~ and nine-month periods ended September 30, 2016 totaled $5.8 million and $25.6 million, and were primarily related to the consolidation of offices in the U.K., technology costs, branding and incentive compensation. The prior period integration costs relate to the WGA, Noraxis, Crombie/OAMPS, Oval and Giles acquisitions. Integration costs related to these acquisitions for the full year 2017 are estimated to be less than a third of what they were in 2016.

~~- 41 -~~

Commissions and fees-The aggregate increase in base commissions and fees for the three-month period ended ~~September 30, 2017~~March 31, 2024, compared to the same period in ~~2016,~~2023, was ~~principally~~ due to ~~combination of~~ revenues associated with acquisitions that were made in the twelve-month period ended ~~September 30, 2017~~March 31, 2024 ($~~37.1~~244.2 million), and to the organic ~~growth. Commissions~~change in base commissions and fees in the three-month period ended September 30, 2017 included new business production of $99.0 million, which was offset by lost business and renewal rate decreases of $62.7 million. Organic growthfee revenues. The organic change in base commissions and fee revenues ~~was 3.7%~~were 8.8% and ~~2.4%~~9.5% for the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, respectively.

~~The aggregate increase in base commissions~~In our property/casualty brokerage operations, during the three-month period ended March 31, 2024 we saw continued strong customer retention, higher new business generation and ~~fees~~increasing renewal premiums (premium rates and exposures). We believe these favorable trends should continue for the ~~nine-month period ended September 30, 2017 compared to the same period in 2016, was principally due to combination~~remainder of ~~revenues associated with acquisitions that were made in the twelve-month period ended September 30, 2017 ($124.4 million) and to organic growth. Commissions and fees in thenine-month~~ ~~period ended September 30, 2017 included new business production of $273.5 million, which was offset by lost business and renewal~~2024; however, if economic conditions worsen or premium rate ~~decreases of $220.2 million. Organic~~increases slow, we could see our revenue growth ~~in base commissions and fee revenues was 3.4% and 2.6% for the nine-month periods ended September 30, 2017 and 2016, respectively.~~soften.

- 41 -

Items excluded from organic revenue computations yet impacting revenue comparisons for the three-month ~~andnine-month~~periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023 include the following (in millions):

   2017 Organic Revenue 2016 Organic Revenue
For the Three-Month Periods Ended September 30,
   2017 2016 Change 2016 2015 Change
Base Commissions and Fees

Commission and fees, as reported
   $ 884.9 $ 811.5 9.0 % $ 811.5 $ 776.3 4.5 %
Less commission and fee revenues from acquisitions
   (37.1 ) —   (38.4 ) —
Less disposed of operations
   —   (0.1 ) —   (1.1 )
Levelized foreign currency translation
   —   6.2 —   (20.3 )


Organic base commission and fees
   $ 847.8 $ 817.6 3.7 % $ 773.1 $ 754.9 2.4 %


Supplemental Commissions

Supplemental commissions, as reported
   $ 39.9 $ 35.3 13.0 % $ 35.3 $ 29.2 20.9 %
Less supplemental commissions from acquisitions
   (0.2 ) —   (0.1 ) —
Less disposed of operations
   —   (0.1 ) —   (0.2 )
Levelized foreign currency translation
   —   0.2 —   (1.7 )


Organic supplemental commissions
   $ 39.7 $ 35.4 12.2 % $ 35.2 $ 27.3 28.9 %


Contingent Commissions

Contingent commissions, as reported
   $ 13.5 $ 16.4 -17.7 % $ 16.4 $ 14.5 13.1 %
Less contingent commissions from acquisitions
   (1.0 ) —   (0.9 ) —
Less disposed of operations
   —   —   —   (0.1 )
Levelized foreign currency translation
   —   0.1 —   (0.1 )


Organic contingent commissions
   $ 12.5 $ 16.5 -24.2 % $ 15.5 $ 14.3 8.4 %


Total reported commissions, fees, supplemental
commissions and contingent commissions
   $ 938.3 $ 863.2 8.7 % $ 863.2 $ 820.0 5.3 %
Less commission and fee revenues from acquisitions
   (38.3 ) —   (39.4 ) —
Less disposed of operations
   —   (0.2 ) —   (1.4 )
Levelized foreign currency translation
   —   6.5 —   (22.1 )


Total organic commissions, fees, supplemental
commissions and contingent commissions
   $ 900.0 $ 869.5 3.5 % $ 823.8 $ 796.5 3.4 %


	Three-Month Period Ended March 31,
Organic Revenues (Non-GAAP)	2024			2023		Change
Base Commissions and Fees
Commission and fees, as reported	$	2,600.3		$	2,160.1		20.4	%
Less commission and fee revenues from acquisitions		(244.2	)		—
Levelized foreign currency translation		—			6.0
Organic base commission and fees	$	2,356.1		$	2,166.1		8.8	%
Supplemental revenues
Supplemental revenues, as reported	$	93.9		$	81.6		15.1	%
Less supplemental revenues from acquisitions		(2.3	)		—
Levelized foreign currency translation		—			0.4
Organic supplemental revenues	$	91.6		$	82.0		11.7	%
Contingent revenues
Contingent revenues, as reported	$	86.0		$	71.8		19.8	%
Less contingent revenues from acquisitions		(7.2	)		—
Levelized foreign currency translation		—			0.2
Organic contingent revenues	$	78.8		$	72.0		9.4	%
Total reported commissions, fees, supplemental revenues and contingent revenues	$	2,780.2		$	2,313.5		20.2	%
Less commissions, fees, supplemental revenues and contingent revenues from acquisitions		(253.7	)		—
Levelized foreign currency translation		—			6.6
Total organic commissions, fees, supplemental revenues and contingent revenues	$	2,526.5		$	2,320.1		8.9	%

~~- 42 -~~

   2017 Organic Revenue 2016 Organic Revenue
For the Nine-Month Periods Ended September 30,
   2017 2016 Change 2016 2015 Change
Base Commissions and Fees

Commission and fees, as reported
   $ 2,576.0 $ 2,398.3 7.4 % $ 2,398.3 $ 2,254.4 6.4 %
Less commission and fee revenues from acquisitions
   (124.4 ) —   (139.3 ) —
Less disposed of operations
   —   (1.5 ) —   (1.9 )
Levelized foreign currency translation
   —   (26.2 ) —   (51.3 )


Organic base commission and fees
   $ 2,451.6 $ 2,370.6 3.4 % $ 2,259.0 $ 2,201.2 2.6 %


Supplemental Commissions

Supplemental commissions, as reported
   $ 115.9 $ 106.8 8.5 % $ 106.8 $ 90.9 17.5 %
Less supplemental commissions from acquisitions
   (1.4 ) —   (1.4 ) —
Less disposed of operations
   —   (0.5 ) —   (0.2 )
Levelized foreign currency translation
   —   (2.7 ) —   (3.5 )


Organic supplemental commissions
   $ 114.5 $ 103.6 10.5 % $ 105.4 $ 87.2 20.9 %


Contingent Commissions

Contingent commissions, as reported
   $ 96.4 $ 96.7 -0.3 % $ 96.7 $ 81.8 18.2 %
Less contingent commissions from acquisitions
   (5.2 ) —   (7.6 ) —
Less disposed of operations
   —   (2.9 ) —   (0.1 )
Levelized foreign currency translation
   —   (0.7 ) —   (0.6 )


Organic contingent commissions
   $ 91.2 $ 93.1 -2.0 % $ 89.1 $ 81.1 9.9 %


Total reported commissions, fees, supplemental commissions and contingent commissions
   $ 2,788.3 $ 2,601.8 7.2 % $ 2,601.8 $ 2,427.1 7.2 %
Less commission and fee revenues from acquisitions
   (131.0 ) —   (148.3 ) —
Less disposed of operations
   —   (4.9 ) —   (2.2 )
Levelized foreign currency translation
   —   (29.6 ) —   (55.4 )


Total organic commissions, fees, supplemental commissions and contingent commissions
   $ 2,657.3 $ 2,567.3 3.5 % $ 2,453.5 $ 2,369.5 3.6 %

The following is a summary of brokerage segment acquisition activity for ~~2017~~2024 and ~~2016:~~2023:

   Three-month period
ended September 30,    Nine-month period
ended September 30,
   2017    2016    2017    2016
Number of acquisitions closed
   6    7    27    28








Estimated annualized revenues acquired (in millions)
   $ 36.9    $ 27.4    $ 129.7    $ 97.8








Rollover revenues recognized in period from 2016 and Q1 and Q2 2017 acquisitions (in millions)
   $ 34.7       $ 127.4
Portion of Q3 2017 acquisitions revenues recognized in period (in millions)
   3.6       3.6





Total
   $ 38.3       $ 131.0


	Three-month period ended March 31,
	2024		2023
Number of acquisitions closed		12		10
Estimated annualized revenues acquired (in millions)	$	69.2	$	69.0

In the three-month period ended March 31, 2024 we issued ~~259,000 shares, 252,000 shares and 257,000~~357,000 shares of our common stock ~~for~~at the request of sellers and/or in connection with tax-free exchange ~~mergers~~acquisitions. In the three-month period ended March 31, 2023, we issued 131,000 shares of our common stock at the request of sellers and/or in ~~first, second and third quarters of 2017, respectively.~~

connection with tax-free exchange acquisitions.

- 4342 -

Supplemental and contingent ~~commissions~~revenues - Reported supplemental and contingent ~~commission~~ revenues recognized in ~~2017, 2016~~2024, 2023 and ~~2015~~2022 by quarter are as follows (in millions):

   First
Quarter    Second
Quarter    Third
Quarter    Fourth
Quarter    YTD
2017

Reported supplemental commissions
   $ 34.5    $ 41.5    $ 39.9       $ 115.9
Reported contingent commissions
   53.4    29.5    13.5       96.4










Reported supplemental and contingent commissions
   $ 87.9    $ 71.0    $ 53.4       $ 212.3










2016

Reported supplemental commissions
   $ 32.9    $ 38.6    $ 35.3    $ 40.2    $ 147.0
Reported contingent commissions
   55.2    25.1    16.4    10.5    107.2










Reported supplemental and contingent commissions
   $ 88.1    $ 63.7    $ 51.7    $ 50.7    $ 254.2










2015

Reported supplemental commissions
   $ 26.9    $ 34.8    $ 29.2    $ 34.6    $ 125.5
Reported contingent commissions
   44.5    22.8    14.5    11.9    93.7










Reported supplemental and contingent commissions
   $ 71.4    $ 57.6    $ 43.7    $ 46.5    $ 219.2


	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter		YTD
2024
Reported supplemental revenues	$	93.9							$	93.9
Reported contingent revenues		86.0								86.0
Reported supplemental and contingent revenues	$	179.9							$	179.9
2023
Reported supplemental revenues	$	81.6	$	71.2	$	64.7		80.0	$	297.5
Reported contingent revenues		71.8		54.2		52.4		40.2		218.6
Reported supplemental and contingent revenues	$	153.4	$	125.4	$	117.1	$	120.2	$	516.1
2022
Reported supplemental revenues	$	74.3	$	65.7	$	64.7		80.0	$	284.7
Reported contingent revenues		71.6		43.1		52.4		40.2		207.3
Reported supplemental and contingent revenues	$	145.9	$	108.8	$	117.1	$	120.2	$	492.0

~~Investment~~

Interest income, premium finance revenues and~~gains realized on books of business sales~~ other income -~~Investment income~~This primarily represents interest income earned on cash, cash equivalents and ~~restricted funds~~fiduciary cash and ~~interest~~revenues from premium financing, income from ~~premium financing. Gains~~equity investments and net gains related to divestitures and sales of books of ~~business were $0.6 million~~business.

Interest income, premium finance revenues and $1.1 million for the three-month periods ended September 30, 2017 and 2016, and $3.1 million and $4.7 million, respectively, for the nine-month periods ended September 30, 2017 and 2016. Investmentother income in the three-month ~~and nine-month periods~~period ended ~~September 30, 2017~~March 31, 2024 increased ~~slightly~~ compared to the same period in ~~2016. The increase in investment income in the three-month and nine-month periods ended September 30, 2017 compared to the same period in 2016 was~~2023, primarily due to increases in interest income ~~from~~on our own and fiduciary funds.

The following table provides a reconciliation of brokerage segment interest income, premium ~~financing business~~finance revenues and other income, as reported in our consolidated financial statements to interest income earned on ~~client held funds in Australia~~cash, cash equivalents and ~~New Zealand.~~fiduciary cash (in millions):

Three-month period ended
March 31,

2024

2023

Interest income, premium finance revenues and other income

$
84.7

$
61.7

Less:

Net (gains) on divestitures

(0.5
)

(0.2
)
Premium financing revenues and net earnings from equity interests

(21.5
)

(20.2
)
Interest income from cash, cash equivalents and fiduciary cash

$
62.7

$
41.3

Compensation expense-The following provides non-GAAP information that management believes is helpful when comparing compensation expense for the three-month ~~and nine-month periods~~period ended ~~September 30, 2017~~March 31, 2024 with the same ~~periods~~period in ~~2016~~2023 (in millions):


	Three-month period ended September 30,						Nine-month period ended September 30,						Three-month period ended March 31,
	2017			2016			2017			2016			2024			2023
Compensation expense, as reported	$	548.4		$	504.0		$	1,621.7		$	1,515.1		$	1,476.8		$	1,206.1
Acquisition integration		(3.0	)		(4.9	)		(6.7	)		(14.0	)		(24.5	)		(34.1	)
Workforce related charges		(4.7	)		(5.5	)		(12.5	)		(9.3	)
Workforce and lease termination related charges														(10.4	)		(13.4	)
Acquisition related adjustments		(1.7	)		(0.6	)		(7.7	)		(3.2	)		(49.8	)		(11.4	)
Levelized foreign currency translation		—			2.6			—			(18.9	)		—			5.7

Compensation expense, as adjusted	$	539.0		$	495.6		$	1,594.8		$	1,469.7		$	1,392.1		$	1,152.9

Reported compensation expense ratios		57.5	%		57.4	%		57.3	%		57.3	%		51.6	%		50.8	%

Adjusted compensation expense ratios		56.6	%		56.1	%		56.4	%		56.3	%		49.0	%		48.4	%

Reported revenues	$	953.7		$	877.6		$	2,830.3		$	2,642.2		$	2,864.9		$	2,375.2

Adjusted revenues - see pages 37 and 38	$	953.1		$	883.5		$	2,827.2		$	2,609.2

Adjusted revenues - see page 37													$	2,838.4		$	2,380.2

~~- 44 -~~

The $270.7 million increase in compensation expense for thethree-month period ended ~~September 30, 2017~~March 31, 2024 compared to the same period in ~~2016~~2023, was primarily due to ~~increased headcount, salary increases and increases in incentive~~ compensation linked to operating results ($40.3 million in the aggregate), increases in employee benefits ($2.3 million), deferred compensation ($1.8 million) and stock compensation expense ($1.4 million), offset by decreases in severance related costs ($0.8 million) and temporary staffing ($0.6 million). The increase in employee headcount primarily relates to employees associated with the acquisitions completed in the twelve-month period ended ~~September 30, 2017.~~

~~The increase~~March 31, 2024 ‑ $134.6 million, increases in base compensation ~~expense for thenine-month~~ ~~period ended September 30, 2017 compared~~related to the ~~same period in 2016 was primarily due~~hiring of producers and other roles to ~~increased headcount, salary increases~~service and ~~increases in incentive compensation linked to operating results ($87.1~~support organic

- 43 -

growth - $110.3 million in the ~~aggregate), increases in employee benefits ($8.7 million), deferred compensation ($7.0 million), severance~~aggregate, and acquisition related ~~costs ($3.2 million) and stock compensation expense ($2.0 million),~~adjustments - $38.4 million, partially offset by a decrease in temporary staffing ($1.4 million). The increase in employee headcount primarily relates to employees associated with the acquisitions completed in the twelve-month period ended September 30, 2017.reduced acquisition integration costs - $9.6 million, and workforce related charges - $3.0 million.

Operating expense -The following provides non-GAAP information that management believes is helpful when comparing operating expense for the three-month ~~and nine-month periods~~period ended ~~September 30, 2017~~March 31, 2024 with the same ~~periods~~period in ~~2016~~2023 (in millions):


	Three-month period ended September 30,						Nine-month period ended September 30,						Three-month period ended March 31,
	2017			2016			2017			2016			2024			2023
Operating expense, as reported	$	148.8		$	143.7		$	446.2		$	452.7		$	339.4		$	288.5

Acquisition integration		(0.5	)		(4.5	)		(3.0	)		(21.5	)		(24.2	)		(17.1	)
Workforce and lease termination related charges		(0.4	)		(0.5	)		(1.9	)		(2.8	)		(1.2	)		(2.0	)
Levelized foreign currency translation		—			2.9			—			(4.0	)		—			0.4

Operating expense, as adjusted	$	147.9		$	141.6		$	441.3		$	424.4		$	314.0		$	269.8

Reported operating expense ratios		15.6	%		16.4	%		15.8	%		17.1	%		11.9	%		12.2	%

Adjusted operating expense ratios		15.5	%		16.0	%		15.6	%		16.3	%		11.1	%		11.3	%

Reported revenues	$	953.7		$	877.6		$	2,830.3		$	2,642.2		$	2,864.9		$	2,375.2

Adjusted revenues - see pages 37 and 38	$	953.1		$	883.5		$	2,827.2		$	2,609.2

Adjusted revenues - see page 37													$	2,838.4		$	2,380.2

The $50.9 million increase in operating expense for the three-month period ended ~~September 30, 2017~~March 31, 2024 compared to the same period in ~~2016~~2023, was primarily due to unfavorable foreign currency translation ($0.9 million) and increases in bad debt expense ($2.5 million), technology expenses ($2.0 million), other expense ($1.2 million), licenses and fees ($0.9 million), employee related expense ($0.8 million), outside services expense ($0.3 million), office supplies ($0.3 million), meeting and client entertainment expense ($0.1 million) and premium financing expense ($0.1 million), partially offset by decreases in real estate expenses ($1.1 million), outside consulting fees ($1.2 million), business insurance ($0.8 million), professional and banking fees ($0.4 million) and lease termination charges ($0.1 million). Also impacting operating expense in the~~three-month~~ ~~period ended September 30, 2017 was~~ expenses associated with the acquisitions completed in thetwelve-month period ended ~~September 30, 2017.~~March 31, 2024 ‑ $28.4 million, increases in acquisition integration costs - $7.1 million and $16.2 million in the aggregate from the underlying inflation of expenses such as travel and entertainment, increased professional fees and additional investments in technology, partially offset by reduced lease termination related charges - $0.8 million.

~~The decrease~~Depreciation- Depreciation expense increased in ~~operating expense for~~ the ~~nine-month~~three-month period ended ~~September 30, 2017~~March 31, 2024 compared to the same period in ~~2016 was primarily due to decreases~~2023 by $4.9 million. The increase in other expense ($7.1 million), real estate expenses ($5.1 million), office supplies ($2.0 million), business insurance ($1.6 million), lease termination charges ($0.9 million), licenses and fees ($0.1 million), and premium financing expense ($0.1 million), partially offset by unfavorable foreign currency translation ($1.3 million) and increases in bad debt expense ($2.9 million), employee related expense ($1.6 million), meeting and client entertainment expense ($1.5 million), technology expenses ($1.3 million), outside consulting fees ($1.1 million), outside services expense ($0.8 million) and professional and banking fees ($0.5 million). Also impacting operatingdepreciation expense in ~~thenine-month~~ ~~period ended September 30, 2017 was expenses associated with the acquisitions completed in thetwelve-month~~ ~~period ended September 30, 2017.~~

~~Depreciation~~- ~~Depreciation expense in the three-month and nine-month periods ended September 30, 2017 increased slightly~~2024 compared to 2023 was due primarily to the ~~same periods~~purchases of furniture, equipment and leasehold improvements related to office consolidations and moves, and expenditures related to upgrading computer systems. Also contributing to the increase in ~~2016 due to expenses~~depreciation expense was the depreciation expense associated with acquisitions completed in thetwelve-month period ended ~~September 30, 2017.~~

March 31, 2024.

Amortization- ~~45 -~~

~~Amortization~~- The increase in amortization expense in thethree-month ~~and nine-month periods~~ period ended ~~September 30, 2017~~March 31, 2024 compared to the same ~~periods~~period in ~~2016 were~~2023 was primarily due to the impact of amortization expense of intangible assets associated with acquisitions completed in the twelve-month period ended ~~September 30, 2017.~~March 31, 2024. Based on the results of impairment reviews during the three-month period ended March 31, 2024 no impairments were noted. Based on the results of impairment reviews during the three-month period ended March 31, 2023 we wrote off $0.1 million of amortizable assets. We review all of our intangible assets for impairment periodically (at least annually for goodwill) and whenever events or changes in business circumstances indicate that the carrying value of the assets may not be recoverable. We perform such impairment reviews at the division (i.e., reporting unit) level with respect to goodwill and at the business unit level for amortizable intangible assets. In reviewing intangible assets, if the undiscounted future cash flows were less than the carrying amount of the respective (or underlying) asset, an indicator of impairment would exist and further analysis would be required to determine whether or not a loss would need to be charged against current period earnings as a component of amortization expense. Expiration lists,~~non-compete~~ non‑compete agreements and trade names are amortized using the straight-line method over their estimated useful lives ~~(three~~(two to fifteen years for expiration lists, ~~three~~two to ~~five~~six years fornon-compete agreements and ~~five~~two to ~~ten~~fifteen years for trade names). Based on the results of impairment reviews during the three-month and nine-month periods ended September 30, 2017, we wrote off $4.5 million and $6.2 million, respectively, of amortizable intangible assets related to the brokerage segment. Based on the results of impairment reviews during the three-month and nine-month periods ended September 30, 2016, we wrote off $1.5 million and $1.8 million, respectively, of amortizable intangible assets related to the brokerage segment.

Change in estimated acquisition earnout payables-The change in the expense from the change in estimated acquisition earnout payables in thethree-month ~~and nine-month periods~~ period ended ~~September 30, 2017~~March 31, 2024 compared to the same ~~periods~~period in ~~2016,~~2023, was primarily due to adjustments made to the estimated fair value of earnout obligations related to revised assumptions due to rising interest rates and increased market volatility and projections of future performance. During the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, we recognized ~~$4.8~~$18.7 million and ~~$4.3~~$19.6 million, respectively, of expense related to the accretion of the discount recorded for earnout obligations in connection with our acquisitions made in the period from ~~2014~~2020 to 2017. During the nine-month periods ended September 30, 2017 and 2016, we recognized $14.9 million and $12.5 million, respectively, of expense related to the accretion of the discount recorded for earnout obligations in connection with our acquisitions made in the period from 2014 to 2017.2024. In addition, during thethree-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, we recognized ~~$6.3 million of expense and $0.2~~$34.9 million of income ~~respectively, related to net adjustments in the estimated fair value of earnout obligations in connection with revised projections of future performance for 30~~ and ~~27 acquisitions, respectively. In addition, during thenine-month~~ ~~periods ended September 30, 2017 and 2016, we recognized $12.9 million and $8.7~~$22.0 million of expense, respectively, related to net adjustments in the estimated fair value of earnout obligations in connection with revised assumptions due to changes in interest rates, volatility and other assumptions and projections of future performance for 8837 and 7722 acquisitions, respectively.

The amounts initially recorded as earnout payables for our ~~2014~~2020 to ~~2017~~2024 acquisitions were measured at fair value as of the acquisition date and are primarily based upon the estimated future operating results of the acquired entities over atwo- ~~to three-year~~ to-three-year period subsequent to the acquisition date. The fair value of these earnout obligations is based on the present value of the expected future

- 44 -

payments to be made to the sellers of the acquired entities in accordance with the provisions outlined in the respective purchase agreements. In determining fair value, we estimate the acquired entity’s future performance using financial projections developed by management for the acquired entity and market participant assumptions that were derived for revenue growth and/or profitability. We ~~estimated~~estimate future earnout payments using the earnout formula and performance targets specified in each purchase agreement and these financial projections. Subsequent changes in the underlying financial projections or assumptions will cause the estimated earnout obligations to change and such adjustments are recorded in our consolidated statement of earnings when incurred. Increases in the earnout payable obligations will result in the recognition of expense and decreases in the earnout payable obligations will result in the recognition of income.

Provision for income taxes- The brokerage segment’s effective income tax rates for the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023, were ~~33.4% (33.4% on a controlling interests basis)~~25.5% and 34.5% (34.4% on a controlling interests basis), respectively. The brokerage segment’s effective income tax rates for the nine-month periods ended September 30, 2017 and 2016 were 33.9% (34.4% on a controlling interests basis) and 34.8% (35.2% on a controlling interests basis)25.4%, respectively. We anticipate reporting an effective tax rate of approximately ~~34.0%~~24.5% to ~~36.0% (on a controlling interests basis)~~26.5% in our brokerage segment ~~for the foreseeable future.~~based on known changes in tax rates in future periods.

Net earnings ~~(loss)~~ attributable to noncontrolling interests-The amounts reported in this line for the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023, include noncontrolling interest ~~(loss)~~ earnings of ~~($0.3)~~$4.3 million and ~~($0.2)~~$0.8 million, respectively, and $7.1 million and $4.1 million, respectively, for the nine-month periods ended September 30, 2017 and 2016, primarily related to our investment in Capsicum Reinsurance Brokers LLP (which we refer to as Capsicum). We are partners in this venture with Grahame Chilton, the CEO of our International Brokerage Division. We are the controlling partner, participating in 33% of Capsicum’s net operating results and Mr. Chilton owns approximately 50% of Capsicum.

respectively.

~~- 46 -~~

Risk Management

The risk management segment accounted for ~~13%~~12% of our revenue during the ~~nine-month~~three-month period ended ~~September 30, 2017. The~~March 31, 2024. Our risk management segment ~~provides~~operations provide contract claim settlement, claim administration, loss control services and ~~administration services~~risk management consulting for ~~enterprises~~commercial, nonprofit, captive and public sector entities, and various other organizations that choose to self-insure ~~some or all of their~~ property/casualty coverages ~~and for insurance companies that~~or choose to ~~outsource some or all of their property/casualty~~use a third-party claims ~~departments. In addition, this segment generates revenues from integrated disability~~ management ~~programs, information~~organization rather than the claim services ~~risk control consulting (loss control) services and appraisal services, either individually or in combination with arising claims.~~provided by underwriting enterprises. Revenues for our risk management segment are comprised of fees generally negotiated (i) on a per-claim or per-service basis, (ii) on a cost-plus basis, or (iii) as performance-based fees. We also provide risk management consulting services that are recognized as the services are ~~substantially in the form of fees that are generally negotiated in advance on aper-claim~~ or~~per-service~~ ~~basis, depending upon the type and estimated volume of the services to be performed.~~delivered.

Financial information relating to our risk management segment results for the three-month ~~and nine-month periods~~period ended ~~September 30, 2017~~March 31, 2024 as compared to the same ~~periods~~period in ~~2016,~~2023, is as follows (in millions, except per share, percentages and workforce data):

   Three-month period
ended September 30, Nine-month period
ended September 30,
Statement of Earnings
   2017 2016 Change 2017 2016 Change
Fees
   $ 200.1 $ 176.4 $ 23.7 $ 571.1 $ 531.8 $ 39.3
Investment income
   0.1 0.3 (0.2 ) 0.4 0.7 (0.3 )


Total revenues
   200.2 176.7 23.5 571.5 532.5 39.0


Compensation
   115.4 106.8 8.6 333.6 316.3 17.3
Operating
   49.1 40.7 8.4 139.4 126.3 13.1
Depreciation
   7.7 7.0 0.7 23.1 20.2 2.9
Amortization
   0.7 0.7 —   2.1 1.8 0.3
Change in estimated acquisition earnout payables
   (0.5 ) —   (0.5 ) (0.3 ) —   (0.3 )


Total expenses
   172.4 155.2 17.2 497.9 464.6 33.3


Earnings before income taxes
   27.8 21.5 6.3 73.6 67.9 5.7
Provision for income taxes
   10.7 8.3 2.4 27.8 25.8 2.0


Net earnings
   17.1 13.2 3.9 45.8 42.1 3.7
Net earnings attributable to noncontrolling interests
   —   —   —   —   —   —


Net earnings attributable to controlling interests
   $ 17.1 $ 13.2 $ 3.9 $ 45.8 $ 42.1 $ 3.7


Diluted net earnings per share
   $ 0.09 $ 0.07 $ 0.02 $ 0.25 $ 0.23 $ 0.02


Other information

Change in diluted net earnings per share
   29 % (13 %) 8 % (14 %)
Growth in revenues
   13 % (1 %) 7 % (2 %)
Organic change in fees
   10 % 1 % 6 % 1 %
Compensation expense ratio
   58 % 60 % 58 % 59 %
Operating expense ratio
   25 % 23 % 24 % 24 %
Effective income tax rate
   38 % 39 % 38 % 38 %
Workforce at end of period (includes acquisitions)
   5,749 5,451
Identifiable assets at September 30
   $ 733.0 $ 679.6
EBITDAC

Net earnings
   $ 17.1 $ 13.2 $ 3.9 $ 45.8 $ 42.1 $ 3.7
Provision for income taxes
   10.7 8.3 2.4 27.8 25.8 2.0
Depreciation
   7.7 7.0 0.7 23.1 20.2 2.9
Amortization
   0.7 0.7 —   2.1 1.8 0.3
Change in estimated acquisition earnout payables
   (0.5 ) —   (0.5 ) (0.3 ) —   (0.3 )


EBITDAC
   $ 35.7 $ 29.2 $ 6.5 $ 98.5 $ 89.9 $ 8.6

- 45 -


Statement of Earnings	Three-month period ended March 31,
	2024			2023			Change
Fees	$	344.5		$	293.0		$	51.5
Interest income and other income		8.3			4.6			3.7
Revenues before reimbursements		352.8			297.6			55.2
Reimbursements		38.6			33.2			5.4
Total revenues		391.4			330.8			60.6
Compensation		213.9			179.8			34.1
Operating		68.4			61.9			6.5
Reimbursements		38.6			33.2			5.4
Depreciation		10.9			8.7			2.2
Amortization		6.3			1.5			4.8
Change in estimated acquisition earnout payables		0.1			0.2			(0.1	)
Total expenses		338.2			285.3			52.9
Earnings before income taxes		53.2			45.5			7.7
Provision for income taxes		13.9			12.0			1.9
Net earnings		39.3			33.5			5.8
Net earnings attributable to noncontrolling interests		—			—			—
Net earnings attributable to controlling interests	$	39.3		$	33.5		$	5.8
Diluted net earnings per share	$	0.18		$	0.15		$	0.03
Other information
Change in diluted net earnings per share		20	%		36	%
Growth in revenues (before reimbursements)		19	%		15	%
Organic change in fees (before reimbursements)		13	%		14	%
Compensation expense ratio (before reimbursements)		61	%		60	%
Operating expense ratio (before reimbursements)		19	%		21	%
Effective income tax rate		26	%		26	%
Workforce at end of period (includes acquisitions)		9,832			8,804
Identifiable assets at March 31	$	1,673.5		$	1,126.7
EBITDAC
Net earnings	$	39.3		$	33.5		$	5.8
Provision for income taxes		13.9			12.0			1.9
Depreciation		10.9			8.7			2.2
Amortization		6.3			1.5			4.8
Change in estimated acquisition earnout payables		0.1			0.2			(0.1	)
EBITDAC	$	70.5		$	55.9		$	14.6

- 46 -

~~- 47 -~~

The following provides non-GAAP information that management believes is helpful when comparing EBITDAC and adjusted EBITDAC for the three-month ~~and nine-month periods~~period ended ~~September 30, 2017~~March 31, 2024 to the same ~~periods~~period in ~~2016~~2023 (in millions):


	Three-month period ended September 30,									Nine-month period ended September 30,									Three-month period ended March 31,
	2017			2016			Change			2017			2016			Change			2024			2023			Change
Net earnings, as reported	$	17.1		$	13.2			29.6	%	$	45.8		$	42.1			8.8	%	$	39.3		$	33.5			17	%
Provision for income taxes		10.7			8.3						27.8			25.8						13.9			12.0
Depreciation		7.7			7.0						23.1			20.2						10.9			8.7
Amortization		0.7			0.7						2.1			1.8						6.3			1.5
Change in estimated acquisition earnout payables		(0.5	)		—						(0.3	)		—						0.1			0.2

Total EBITDAC		35.7			29.2			22.3	%		98.5			89.9			9.6	%		70.5			55.9			26	%
Net (gains) losses on divestitures																				0.2			(0.1	)
Acquisition integration																				0.7			0.6
Workforce and lease termination related charges		0.1			0.4						0.6			1.3						1.2			0.6
Acquisition related adjustments																				0.1			0.1
Levelized foreign currency translation		—			0.4						—			0.5						—			(0.2	)

EBITDAC, as adjusted	$	35.8		$	30.0			19.3	%	$	99.1		$	91.7			8.1	%	$	72.7		$	56.9			28	%

Net earnings margin, as reported		8.5	%		7.5	%		+107 bpts			8.0	%		7.9	%		+10 bpts

EBITDAC margin, as adjusted		17.9	%		16.9	%		+100 bpts			17.3	%		17.2	%		+15 bpts

Reported revenues	$	200.2		$	176.7					$	571.5		$	532.5

Adjusted revenues - see pages 37 and 38	$	200.2		$	177.7					$	571.5		$	533.3

Net earnings margin (before reimbursements), as reported																				11.1	%		11.3	%	- 12 bpts
EBITDAC margin (before reimbursements), as adjusted																				20.6	%		19.2	%	+ 139 bpts
Reported revenues (before reimbursements)																			$	352.8		$	297.6
Adjusted revenues (before reimbursements) - see page 37																			$	353.0		$	296.4

Fees - ~~The increase in fees~~ In our risk management operations, for the three-month period ended ~~September 30, 2017 compared~~March 31, 2024, new core workers' compensation and general liability claims arising improved from existing clients and new clients coming on board in 2023 and 2024. We believe these favorable new arising claim trends should continue for the remainder of 2024 however, worsening economic conditions or a reversal in the number of workers employed could cause fewer new liability and core workers' compensation claims to ~~the same period~~arise in 2016 was due primarily to new business of $22.3 million and claim audit timing of approximately $4.0 million, which were partially offset by lost business of $6.3 million and lower international performance bonus fees.future quarters. Organic change in fee revenues for the three-month period ended ~~September 30, 2017~~March 31, 2024 was ~~10.2%~~13.3% compared to ~~0.7%~~14.3% for the same period in ~~2016.~~2023.

The increase in fees for the nine-month period ended September 30, 2017 compared to the same period in 2016 was due primarily to new business of $54.5 million and higher international performance bonus fees, which were partially offset by lost business of $22.9 million. Organic change in fee revenues for the nine-month period ended September 30, 2017 was 5.8% compared to 0.7% for the same period in 2016.

Items excluded from organic fee computations yet impacting revenue comparisons for thethree-month ~~and nine-month~~ periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023 include the following (in millions):


	2017 Organic Revenue								2016 Organic Revenue								Three-Month Period Ended March 31
For the Three-Month Periods Ended September 30,	2017			2016		Change			2016		2015			Change
Organic Revenues (Non-GAAP)																	2024			2023			Change
Fees	$	200.1		$	176.0		13.7	%	$	176.0	$	175.7			0.2	%	$	341.9		$	288.8			18.4	%
International performance bonus fees		—			0.4					0.4		3.3						2.6			4.2

Fees as reported		200.1			176.4		13.4	%		176.4		179.0			-1.5	%		344.5			293.0			17.6	%

Less fees from acquisitions		(4.6	)		—					—		—						(13.7	)		—
Less clientrun-off		—			—					—		(4.0	)
Levelized foreign currency translation		—			1.0					—		0.2						—			(1.1	)

Organic fees	$	195.5		$	177.4		10.2	%	$	176.4	$	175.2			0.7	%	$	330.8		$	291.9			13.3	%

Reimbursements -Reimbursements represent amounts received from clients reimbursing us for certain third-party costs associated with providing our claims management services. In certain service partner relationships, we are considered a principal because we direct the third party, control the specified service and combine the services provided into an integrated solution. Given this principal relationship, we are required to recognize revenue on a gross basis and service partner vendor fees in the operating expense line in our consolidated statement of earnings.

- 4847 -

   2017 Organic Revenue    2016 Organic Revenue
For the Nine-Month Periods Ended September 30,
   2017 2016    Change 2016 2015 Change
Fees
   $ 567.6 $ 529.6    7.2 % $ 529.6 $ 532.0 -0.5 %
International performance bonus fees
   3.5 2.2    2.2 13.4




Fees as reported
   571.1 531.8    7.4 % 531.8 545.4 -2.5 %
Less fees from acquisitions
   (7.7 ) —      (3.1 ) —
Less clientrun-off
   —   —      (0.1 ) (16.1 )
Levelized foreign currency translation
   —   0.8    —   (4.3 )




Organic fees
   $ 563.4 $ 532.6    5.8 % $ 528.6 $ 525.0 0.7 %

~~Investment~~Interest income and other income- ~~Investment~~ Interest income and other income primarily represents interest income earned on ~~our~~ cash, cash equivalents and ~~cash equivalents. Investment~~fiduciary cash. Interest income and other income in thethree-month ~~and nine-month periods~~ period ended ~~September 30, 2017 remained relatively unchanged~~March 31, 2024 increased compared to the same ~~periods~~period in ~~2016.~~2023, primarily due to increases in interest income from increases in interest rates earned on fiduciary cash.

Compensation expense- The following provides non-GAAP information that management believes is helpful when comparing compensation expense for the three-month ~~and nine-month periods~~period ended ~~September 30, 2017~~March 31, 2024 with the same ~~periods~~period in ~~2016~~2023 (in millions):

   Three-month period
ended September 30, Nine-month period
ended September 30,
   2017 2016 2017 2016
Compensation expense, as reported
   $ 115.4 $ 106.8 $ 333.6 $ 316.3
Workforce related charges
   (0.1 ) (0.3 ) (0.6 ) (1.2 )
Levelized foreign currency translation
   —   0.5 —   0.3


Compensation expense, as adjusted
   $ 115.3 $ 107.0 $ 333.0 $ 315.4


Reported compensation expense ratios
   57.6 % 60.4 % 58.4 % 59.4 %


Adjusted compensation expense ratios
   57.6 % 60.2 % 58.3 % 59.1 %


Reported revenues
   $ 200.2 $ 176.7 $ 571.5 $ 532.5


Adjusted revenues - see pages 37 and 38
   $ 200.2 $ 177.7 $ 571.5 $ 533.3


	Three-month period ended March 31,
	2024			2023
Compensation expense, as reported	$	213.9		$	179.8
Acquisition integration		(0.6	)		(0.6	)
Workforce and lease termination related charges		(0.8	)		(0.4	)
Acquisition related adjustments		(0.1	)		(0.1	)
Levelized foreign currency translation		—			(0.8	)
Compensation expense, as adjusted	$	212.4		$	177.9
Reported compensation expense ratios (before reimbursements)		60.6	%		60.4	%
Adjusted compensation expense ratios (before reimbursements)		60.2	%		60.0	%
Reported revenues (before reimbursements)	$	352.8		$	297.6
Adjusted revenues (before reimbursements) - see page 37	$	353.0		$	296.4

The $34.1 million increase in compensation expense for the three-month period ended ~~September 30, 2017~~March 31, 2024 compared to the same period in ~~2016~~2023, was primarily due to ~~increased headcount, an unfavorable foreign currency translation ($0.5 million) and~~ increases in ~~salaries~~base compensation and ~~incentive compensation ($7.5~~hiring to support organic growth and associated benefits - $28.1 million in the ~~aggregate), temporary-staffing expense ($0.8 million), deferred~~aggregate, compensation ~~($0.3 million) and stock compensation expense ($0.2 million), offset by decreases in employee benefits expense ($0.5 million) and severance related costs ($0.2 million).~~

The increase in compensation expense for the nine-month period ended September 30, 2017 compared to the same period in 2016 was primarily due to increased headcount, an unfavorable foreign currency translation ($0.3 million) and increases in salaries and incentive compensation ($14.2 million in the aggregate), deferred compensation ($1.2 million), temporary-staffing expense ($1.2 million), employee benefits expense ($0.6 million) and stock compensation expense ($0.4 million), offset by a decrease in severance related costs ($0.6 million). Contributing to the increase in employee headcount are employees associated with the acquisitions completed in the twelve-month period ended ~~September 30, 2017.~~

March 31, 2024 ‑ $5.6 million, and workforce related charges - $0.4 million.

~~- 49 -~~

Operating expense-The following provides non-GAAP information that management believes is helpful when comparing operating expense for the three-month ~~and nine-month periods~~ ended ~~September 30, 2017~~March 31, 2024 with the same ~~periods~~period in ~~2016~~2023 (in millions):


	Three-month period ended September 30,						Nine-month period ended September 30,						Three-month period ended March 31,
	2017			2016			2017			2016			2024			2023
Operating expense, as reported	$	49.1		$	40.7		$	139.4		$	126.3		$	68.4		$	61.9
Acquisition integration														(0.1	)		—
Workforce and lease termination related charges		—			(0.1	)		—			(0.1	)		(0.4	)		(0.2	)
Levelized foreign currency translation		—			0.1			—			—			—			(0.1	)

Operating expense, as adjusted	$	49.1		$	40.7		$	139.4		$	126.2		$	67.9		$	61.6

Reported operating expense ratios		24.5	%		23.0	%		24.4	%		23.7	%

Adjusted operating expense ratios		24.5	%		22.9	%		24.4	%		23.7	%

Reported revenues	$	200.2		$	176.7		$	571.5		$	532.5

Adjusted revenues - see pages 37 and 38	$	200.2		$	177.7		$	571.5		$	533.3

Reported operating expense ratios (before reimbursements)														19.4	%		20.8	%
Adjusted operating expense ratios (before reimbursements)														19.2	%		20.8	%
Reported revenues (before reimbursements)													$	352.8		$	297.6
Adjusted revenues (before reimbursements) - see page 37													$	353.0		$	296.4

- 48 -

The $6.5 million increase in operating expense for the three-month period ended ~~September 30, 2017~~March 31, 2024 compared to the same period in ~~2016~~2023, was primarily due to $3.9 million in the aggregate from increases in ~~professional~~various operational costs and ~~banking fees ($2.9 million), business insurance ($1.8 million), other expense ($1.7 million), outside consulting fees ($0.6 million), employee expense ($0.5 million),~~additional investments in technology as well as expenses ~~($0.5 million), licenses and fees ($0.2 million), office supplies ($0.1 million) and outside services ($0.1 million), offset by a decrease~~associated with the acquisitions completed in ~~real estate expenses ($0.3 million).~~

~~The increase in operating expense for~~ the ~~nine-month~~twelve-month period ended ~~September 30, 2017~~March 31, 2024 - $2.6 million.

Depreciation- Depreciation increased in the three-month ended March 31, 2024 compared to the same period in 2016 was primarily due to increases in professional and banking fees ($6.1 million), outside consulting fees ($2.8 million), other expense ($2.5 million), employee expense ($1.3 million), business insurance ($0.7 million), office supplies ($0.3 million), licenses and fees ($0.3 million), outside services ($0.3 million) and meeting and client entertainment expense ($0.1 million), offset2023 by ~~decreases in real estate expenses ($0.9 million), technology expenses ($0.5 million) and bad debt expense ($0.3 million).~~

~~Depreciation~~-~~Depreciation expense increased slightly in thethree-month~~ ~~and nine-month periods ended September 30, 2017 compared to the same periods in 2016 and~~$2.2 million which reflects ~~the impact of purchases of furniture, equipment and leasehold improvements related to office expansions and relocations, and~~ expenditures related to upgrading computer ~~systems.~~

~~Amortization~~-~~Amortization increased slightly~~systems, partially offset by the impact of office consolidations that occurred as leases expired in 2023 and 2022 (less depreciation associated with furniture, equipment and leasehold improvements). Also contributing to the increase in depreciation expense was the depreciation expense associated with acquisitions completed in the~~three-month~~ ~~and nine-month periods~~ twelve-month period ended ~~September 30, 2017~~March 31, 2024.

Amortization- The amortization expense increased compared to the same ~~periods~~period in ~~2016. Historically,~~2023 by $4.8 million, primarily due to the ~~risk management segment has made few acquisitions. We made three acquisitions~~acquisition of My Plan Manager in ~~this segment~~December 2023. Based on the results of impairment reviews during the ~~nine-month period~~three-month periods ended ~~September 30, 2017 with estimated annualized revenues acquired of $13.3 million. We made~~March 31, 2024 and 2023, no ~~acquisitions in this segment during the nine-month period ended September 30, 2016.~~impairments were noted.

Change in estimated acquisition earnout payables-The change in expense from the change in estimated acquisition earnout payables in thethree-month ~~and nine-month periods~~ ended ~~September 30, 2017 compared~~March 31, 2024 to the same ~~periods~~period in ~~2016,~~2023, was due to accretion of the discount. During the three-month periods ended March 31, 2024 and 2023, we recognized $0.1 million and $0.2 million, respectively, of expense in each period, related to the accretion of the discount recorded for earnout obligations in connection with ~~three acquisitions made in thenine-month~~ ~~period ended September 30, 2017. In addition, during thethree-month~~ and nine-month periods ended September 30, 2017, we recognized $0.6 million of income, related to net adjustments in the estimated fair value of earnout obligations in connection with revised projections of future performance for one acquisition. During the three-month period ended September 30, 2017, we made one acquisition in the risk management segment with estimated annualized revenues acquired of approximately $1.1 million.our acquisitions.

Provision for income taxes- The risk management segment’s effective income tax rates for the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023, were ~~38.5%~~26.1% and ~~38.6%, respectively. The risk management segment’s effective income tax rates for the nine-month periods ended September 30, 2017 and 2016 were 37.8% and 38.0%~~26.4%, respectively. We anticipate reporting an effective tax rate on adjusted results of approximately ~~36.0%~~25.0% to ~~38.0%~~27.0% in our risk management segment ~~for the foreseeable future.~~

based on known changes in tax rates in future periods.

- 49 -

Corporate

~~- 50 -~~

~~Corporate~~

The corporate segment reports the financial information related to our clean energy and other investments, our debt, ~~and~~ certain corporate and acquisition-related ~~activities.~~activities and the impact of foreign currency remeasurement. For a detailed discussion of the nature of these investments, see Note ~~11 to our consolidated financial statements included herein for a summary of our investments as of September 30, 2017 and in Note 13~~14 to our most recent Annual Report onForm ~~10-K~~10‑K as of December 31, ~~2016.~~2023. For a detailed discussion of the nature of our debt, see Note 6 to our unaudited consolidated financial statements included herein as of ~~September 30, 2017~~March 31, 2024 and in Note 78 to our most recent Annual Report onForm ~~10-K~~10‑K as of December 31, ~~2016.~~2023.

Financial information relating to our corporate segment results for the three-month ~~and nine-month periods~~period ended ~~September 30, 2017 as~~March 31, 2024 compared to the same ~~periods~~period in ~~2016~~2023 is as follows (in millions, except per ~~share and percentages)~~share):


	Three-month period ended September 30,									Nine-month period ended September 30,									Three-month period ended March 31,
Statement of Earnings	2017			2016			Change			2017			2016			Change			2024			2023			Change
Revenues from consolidated clean coal production plants	$	418.6		$	417.1		$	1.5		$	1,125.2		$	1,000.6		$	124.6
Royalty income from clean coal licenses		12.5			12.7			(0.2	)		34.7			36.6			(1.9	)
Loss from unconsolidated clean coal production plants		(0.5	)		(0.5	)		—			(1.1	)		(1.2	)		0.1
Other net losses		—			(1.3	)		1.3			—			(0.9	)		0.9


Other income																			$	0.4		$	0.1		$	0.3
Total revenues		430.6			428.0			2.6			1,158.8			1,035.1			123.7			0.4			0.1			0.3

Cost of revenues from consolidated clean coal production plants		451.4			449.7			1.7			1,215.4			1,079.1			136.3
Compensation		16.3			15.8			0.5			58.1			48.3			9.8			35.2			29.6			5.6
Operating		16.3			5.2			11.1			40.6			19.7			20.9			27.9			32.1			(4.2	)
Interest		31.4			28.5			2.9			92.9			81.5			11.4			92.2			67.9			24.3
Depreciation		7.9			4.5			3.4			21.2			13.6			7.6			1.7			1.1			0.6


Total expenses		523.3			503.7			19.6			1,428.2			1,242.2			186.0			157.0			130.7			26.3

Loss before income taxes		(92.7	)		(75.7	)		(17.0	)		(269.4	)		(207.1	)		(62.3	)		(156.6	)		(130.6	)		(26.0	)
Benefit for income taxes		(105.8	)		(95.2	)		(10.6	)		(284.4	)		(230.5	)		(53.9	)		(77.4	)		(68.4	)		(9.0	)

Net earnings		13.1			19.5			(6.4	)		15.0			23.4			(8.4	)
Net earnings attributable to noncontrolling interests		7.7			7.8			(0.1	)		20.9			20.6			0.3


Net earnings attributable controlling interests	$	5.4		$	11.7		$	(6.3	)	$	(5.9	)	$	2.8		$	(8.7	)

Diluted net earnings per share	$	0.03		$	0.07		$	(0.04	)	$	(0.02	)	$	0.02		$	(0.04	)

Identifiable assets at September 30										$	1,801.5		$	1,548.0

Net loss																				(79.2	)		(62.2	)		(17.0	)
Net loss attributable to noncontrolling interests																				—			(0.7	)		0.7
Net loss attributable to controlling interests																			$	(79.2	)	$	(61.5	)	$	(17.7	)
Diluted net loss per share																			$	(0.36	)	$	(0.28	)	$	(0.08	)
Identifiable assets at March 31																			$	2,930.8		$	3,047.8
EBITDAC
Net earnings	$	13.1		$	19.5		$	(6.4	)	$	15.0		$	23.4		$	(8.4	)
Net loss																			$	(79.2	)	$	(62.2	)	$	(17.0	)
Benefit for income taxes		(105.8	)		(95.2	)		(10.6	)		(284.4	)		(230.5	)		(53.9	)		(77.4	)		(68.4	)		(9.0	)
Interest		31.4			28.5			2.9			92.9			81.5			11.4			92.2			67.9			24.3
Depreciation		7.9			4.5			3.4			21.2			13.6			7.6			1.7			1.1			0.6


EBITDAC	$	(53.4	)	$	(42.7	)	$	(10.7	)	$	(155.3	)	$	(112.0	)	$	(43.3	)	$	(62.7	)	$	(61.6	)	$	(1.1	)

Revenues- Revenues in the corporate segment primarily consist of ~~the following:~~

~~Revenues from consolidated clean coal production plants represents revenues~~income from the consolidated IRC Section 45 facilities in which we have a majority ownership position and maintain control over the operations of the related plants, including those that are currently not operating. When we relinquish control in connection with the sale of majority ownership interests in our investments, we deconsolidate these operations.

~~- 51 -~~

The increase in revenues from consolidated clean coal production plants for the three-month and nine-month periods ended September 30, 2017, compared to the same periods in 2016, was due primarily to increased production.

Royalty income from clean coal licenses represents revenues related to Chem-Mod LLC. As of September 30, 2017, we held a 46.5% controlling interest in Chem-Mod. As Chem-Mod’s manager, we are required to consolidate its operations.

The modest decreases in royalty income in the three-month and nine-month periods ended September 30, 2017, compared to the same periods in 2016, were due to small reductions in production of refined coal by Chem-Mod’s licensees.

Expenses related to royalty income of Chem-Mod in the three-month periods ended September 30, 2017 and 2016, were $0.6 million and $0.7 million, respectively. Expenses related to royalty income of Chem-Mod in the nine-month periods ended September 30, 2017 and 2016, were $1.9 million and $2.0 million, respectively.

Loss from unconsolidated clean coal production plants represents our equity portion of the pretax operating results from the unconsolidated clean coal production plants. The production of refined coal generates pretax operating losses.

~~The losses in the three-month and nine-month periods ended September 30, 2017 and 2016 were low because the vast majority of our operations are consolidated.~~

Other net revenues include the following: In the nine-month period ended September 30, 2017, we recorded a $0.2 million equity accounting loss related to one of our legacy investments, a $0.1 million gain related to the liquidationrun-off of legacy investments and a $0.1 million gain on the sale of shares in a partially owned entity. In the nine-month period ended September 30, 2016, we recorded $0.8 million of rental income related to our new headquarters facility, a $1.3 million impairment loss related to two clean coal production plants, including engineering costs of $0.7 million incurred for two locations that will not be used, and a $0.4 million equity basis accounting loss related to three of our legacy investments.

~~Cost of revenues~~- Cost of revenues from consolidated clean coal production plants, consists of the cost of coal, labor, equipment maintenance, chemicals, supplies, management fees and depreciation incurred by the clean coal production plants to generate the consolidated revenues discussed above, including the costs to run the leased facilities. The increases in the~~three-month~~ ~~and nine-month periods ended September 30, 2017, compared to the same periods in 2016, were due primarily to increased production.~~

Compensation expense- Compensation expense in the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016, respectively,~~2023, includes salary, incentive compensation, and associated benefit expenses of ~~$7.1~~$35.2 million and ~~$4.0 million and incentive compensation of $9.2 million and $11.8~~$29.6 million, respectively. The ~~increase~~change in ~~salary and benefits~~compensation expense for the three-month period ended ~~September 30, 2017~~March 31, 2024 compared to the same period in ~~2016,~~2023 was primarily due ~~primarily~~ to increased ~~staffing and salary increases related to implementation of a new accounting standard for revenue recognition. The decrease in incentive compensation for thethree-month~~ ~~period ended September 30, 2017 compared to the same period in 2016 was due primarily to the timing of achieving certain performance targets.~~costs associated with stock-based benefits.

~~Compensation~~Operating expense in the nine-month periods ended September 30, 2017 and 2016, respectively, includes salary and benefit expenses of $20.5 million and $13.0 million and incentive compensation of $37.6 million and $35.3 million, respectively. The increase in salary and benefits expense for the nine-month period ended September 30, 2017 compared to the same period in 2016, was due primarily to increased staffing and salary increases related to implementation of a new accounting standard for revenue recognition. The increase in incentive compensation for the~~nine-month~~ ~~period ended September 30, 2017 compared to the same period in 2016 was due primarily to clean-energy and efforts related to the new headquarters.~~

~~Operating expenses~~ - Operating expense in the three-month period ended ~~September 30, 2017~~March 31, 2024, includes banking and related fees of $0.9 million, external professional fees and other due diligence costs related to acquisitions of ~~$2.2~~$3.8 million, ~~$1.9~~which includes transaction-related costs as described on page 52 in note (2), other corporate and clean energy related expenses, including litigation matters, technology and other professional fees, of $23.8 million, of corporate related marketing costs, expenses of $0.9 million for systems and consulting related to implementation of the new revenue recognition accounting rules, $7.4 million of expenses related to our new headquarters facility andpartially offset by a net unrealized foreign exchange remeasurement ~~loss~~gain of ~~$3.0~~$0.6 million.

Operating expense in the three-month period ended ~~September 30, 2016~~March 31, 2023 includes banking and related fees ~~of $0.9~~$0.8 million, external professional fees and other due diligence costs related to acquisitions of ~~$0.8~~$8.4 million, which includes $4.4 million of transaction‑related costs as described on page 52 in note (2), other corporate and clean energy related expenses, ~~of $0.4 million, $1.2 million for~~including litigation matters, costs associated with a ~~biennial company-wide~~triennial corporate-wide meeting, technology and ~~$1.9 million of corporate related marketing costs.~~

~~- 52 -~~

~~Operating expense in the nine-month period ended September 30, 2017 includes banking and related~~professional fees, of ~~$2.6~~$22.8 million, external professional fees and other due diligence costs related to acquisitions of $7.1 million, other corporate and clean energy related expenses of $6.1 million, $2.2 million for a biennial company-wide meeting, $4.0 million of corporate related marketing costs, expenses of $3.4 million for systems and consulting related to implementation of the new revenue recognition accounting rules, $12.2 million of expenses related to our new headquarters facility and a net unrealized foreign exchange remeasurement loss of ~~$3.0~~$(0.1) million.

Operating expense in the nine-month period ended September 30, 2016 includes banking and related fees of $2.4 million, external professional fees and other due diligence costs related to acquisitions of $3.0 million, other corporate and clean energy related expenses of $4.3 million, $3.6 million for a biennial company-wide meeting, $5.7 million of corporate related marketing costs and $0.8 million related to the litigation settlement.

- 50 -

Interest expense- The increase in interest expense for the three-month ~~and nine-month periods~~period ended ~~September 30, 2017,~~March 31, 2024 compared to the same period in ~~2016,~~2023, was due to the following:

Change in interest expense related to:
   Three-month
period ended
September 30, 2017 Nine-month
period ended
September 30, 2017
Interest on borrowings from our Credit Agreement
   $ (0.3 ) $ 2.1
Interest on the $275.0 million note funded on June 2, 2016
   —   5.1
Interest on the $50.0 million 2016 maturity of the Series B Note that was paid off on November 30, 2016
   (0.7 ) (2.2 )
Interest on the $100.0 million note funded on December 1, 2016
   0.9 2.6
Interest on the $250.0 million notes funded on June 27, 2017
   2.6 2.7
Interest on the $250.0 million note funded on August 2 and 4, 2017
   2.5 2.5
Amortization of the hedge gain related to the August 2017 fundings
   (0.2 ) (0.2 )
Interest on the $300.0 million 2017 maturity of the Series B Note that was paid off on August 3, 2017
   (3.3 ) (3.3 )
Capitalization of interest costs related to the purchase and development of our new headquarters building and other
   1.4 2.1


Net change in interest expense
   $ 2.9 $ 11.4


Change in interest expense related to:	Three-month period ended March 31, 2024
Interest on borrowings from our Credit Agreement	$	1.1
Interest on the maturity of the Series H notes		(1.2	)
Interest on the maturity of the Series E notes		(0.3	)
Interest on the maturity of the Series N notes		(2.1	)
Interest on the prepayment of the Series CC notes		(0.8	)
Interest on the maturity of the Series HH notes		(0.6	)
Interest on the $950.0 million notes funded on March 2, 2023		9.2
Interest on the $1,000.0 million senior notes funded on November 2, 2023		16.8
Interest on the $1,000.0 million senior notes funded on February 15, 2024		7.1
Amortization of hedge gains/losses		(4.9	)
Net change in interest expense	$	24.3

~~The capitalization of interest costs related to the purchase and development of our new headquarters building was completed as of January 2017.~~

Depreciation- Depreciation expense in the three-month ~~and nine-month periods~~period ended ~~September 30, 2017 increased compared to the same periods in 2016, and~~March 31, 2024 relates to ~~new clean energy plants and the new~~ corporate ~~headquarters facility.~~home office related assets.

Benefit for income taxes- We allocate the provision for income taxes to the brokerage and risk management segments using local country statutory rates. As a result, the provision for income taxes for the corporate segment reflects the entire benefit to us of the IRS Section 45 credits generated, because that is the segment which produced the credits. The law that provides for IRC Section 45 credits substantially expires in December 2019 for our fourteen 2009 Era Plants and in December 2021 for our twenty 2011 Era Plants. Our consolidated effective tax rate for the three-month period ended ~~September 30, 2017~~March 31, 2024 was ~~(42.5)%~~20.7% compared to ~~(37.4)%~~19.7% for the same period in 2016. Our consolidated effective tax rate for the nine-month period ended September 30, 2017 was (30.4)% compared to (19.4)% for the same period in 2016. The tax rates for September 30, 2017 and 2016 were lower than the statutory rate primarily due to the amount of IRC Section 45 tax credits recognized during the period. There were $157.1 million and $144.7 million of tax credits recognized in the~~nine-month~~ ~~periods ended September 30, 2017 and 2016, respectively. There were $174.3 million and $145.2 million of tax credits produced in thenine-month~~ periods ended September 30, 2017 and 2016, respectively. Also, impacting the benefit for the income taxes line is the adoption of a new accounting pronouncement, whereby it requires that the income tax effects of awards be recognized in the income statement when the awards vest or are settled, rather than recognizing the tax benefits in excess of compensation costs through stockholders’ equity. The income tax benefit of stock based awards that vested or were settled in the nine-months ended September 30, 2017 was $11.9 million.2023.

~~Potential U.S. Federal income tax law changes~~- The value of our tax credits could be impacted by changes in the tax code as a result of the recent presidential and congressional elections in the U.S. Congress could modify or repeal IRC Section 45 and remove the tax credits (either prospectively or through the elimination of the carryover of the credits),

~~- 53 -~~

which would adversely affect the value of our investment. Also, if Congress reduces tax rates, although we might pay less in taxes overall, it would reduce the tax benefit of operating costs associated with the production of refined coal. Although we are unable to predict how a reduction in tax rates during 2017 would affect our cash taxes paid in 2017, we estimate that if the U.S. Federal corporate income tax rate had been reduced from 35% to 20% and if the Alternative Minimum Tax had been eliminated as of January 1, 2016, our cash taxes paid for fiscal 2016 would have been $39.1 million rather than $66.1 million.

Net ~~earnings~~loss attributable to noncontrolling interests - The amounts reported in this line for the three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023 include~~non-controlling~~ noncontrolling interest ~~earnings~~loss of ~~$9.2 million~~zero and ~~$9.1~~$(0.7) million, respectively, related to our investment in Chem-Mod LLC. ~~The amounts reported in this line for the nine-month periods ended September 30, 2017 and 2016 includenon-controlling~~ ~~interest earnings of $24.8 million for both years related to our investment in Chem-Mod LLC.~~ As of ~~September 30, 2017 and 2016,~~March 31, 2024, we held a 46.5% controlling interest in ~~Chem-Mod.~~Chem-Mod LLC. Also included in net earnings attributable to noncontrolling interests are offsetting amounts related tonon-Gallagher owned interests in several clean energy investments.

The following provides non-GAAP information that we believe is helpful when comparing our operating results for thethree-month ~~and nine-month~~ periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023 for the corporate segment (in millions):

Three-Month Periods Ended September 30,
   2017 2016
   Pretax
(Loss) Income
Tax
Benefit Net Earnings
(Loss)
Attributable to
Controlling
Interests Pretax
(Loss) Income
Tax
Benefit Net Earnings
(Loss)
Attributable to
Controlling
Interests
Interest and banking costs
   $ (31.9 ) $ 12.8 $ (19.1 ) $ (29.3 ) $ 11.7 $ (17.6 )
Clean energy related (1)
   (38.8 ) 77.1 38.3 (39.8 ) 79.1 39.3
Acquisition costs
   (2.3 ) 0.9 (1.4 ) (0.9 ) 0.1 (0.8 )
Corporate
   (21.2 ) 12.5 (8.7 ) (9.1 ) 3.4 (5.7 )
Litigation settlement related expenses
   —   —   —   (4.4 ) 0.9 (3.5 )
Home office lease termination/move
   (6.2 ) 2.5 (3.7 ) —   —   —


Reported second quarter
   (100.4 ) 105.8 5.4 (83.5 ) 95.2 11.7
Litigation settlement related expenses
   —   —   —   4.4 (0.9 ) 3.5
Home office lease termination/move
   6.2 (2.5 ) 3.7 —   —   —


Adjusted second quarter
   $ (94.2 ) $ 103.3 $ 9.1 $ (79.1 ) $ 94.3 $ 15.2



Nine-Month Periods Ended September 30,

Interest and banking costs
   $ (95.0 ) $ 38.1 $ (56.9 ) $ (83.6 ) $ 33.4 $ (50.2 )
Clean energy related (1)
   (114.5 ) 202.7 88.2 (98.1 ) 183.9 85.8
Acquisition costs
   (7.4 ) 2.2 (5.2 ) (3.7 ) 0.6 (3.1 )
Corporate
   (49.1 ) 33.8 (15.3 ) (27.7 ) 9.6 (18.1 )
Litigation settlement related expenses
   (11.1 ) 2.3 (8.8 ) (14.6 ) 3.0 (11.6 )
Home office lease termination/move
   (13.2 ) 5.3 (7.9 ) —   —   —


Reported second quarter
   (290.3 ) 284.4 (5.9 ) (227.7 ) 230.5 2.8
Litigation settlement related expenses
   11.1 (2.3 ) 8.8 14.6 (3.0 ) 11.6
Home office lease termination/move
   13.2 (5.3 ) 7.9 —   —   —


Adjusted second quarter
   $ (266.0 ) $ 276.8 $ 10.8 $ (213.1 ) $ 227.5 $ 14.4


	2024									2023
																Net Earnings
				Income			(Loss)						Income			(Loss)
				Tax			Attributable to						Tax			Attributable to
	Pretax			(Provision)			Controlling			Pretax			(Provision)			Controlling
Three-Month Periods Ended March 31,	Loss			Benefit			Interests			Loss			Benefit			Interests
Interest and banking costs	$	(93.1	)	$	24.2		$	(68.9	)	$	(68.7	)	$	17.9		$	(50.8	)
Clean energy related (1)		(1.9	)		0.5			(1.4	)		(2.2	)		0.6			(1.6	)
Acquisition costs (2)		(4.7	)		0.8			(3.9	)		(9.5	)		1.5			(8.0	)
Corporate (3)		(56.9	)		51.9			(5.0	)		(49.5	)		48.4			(1.1	)
Corporate, as reported		(156.6	)		77.4			(79.2	)		(129.9	)		68.4			(61.5	)
Adjustments
Transaction-related costs (2)		3.2			(0.5	)		2.7			4.4			(1.1	)		3.3
Components of Corporate Segment, as adjusted
Interest and banking costs		(93.1	)		24.2			(68.9	)		(68.7	)		17.9			(50.8	)
Clean energy related (1)		(1.9	)		0.5			(1.4	)		(2.2	)		0.6			(1.6	)
Acquisition costs		(1.5	)		0.3			(1.2	)		(5.1	)		0.4			(4.7	)
Corporate (3)		(56.9	)		51.9			(5.0	)		(49.5	)		48.4			(1.1	)
Adjusted three months	$	(153.4	)	$	76.9		$	(76.5	)	$	(125.5	)	$	67.3		$	(58.2	)

~~(1)~~

Pretax earnings (loss) for the third quarter are presented net of amounts attributable to noncontrolling interests of $7.7 million in 2017 and $7.8 million in 2016. Pretax earnings (loss) for the nine-month periods are presented net of amounts attributable to noncontrolling interests of $20.9 million in 2017 and $20.6 million in 2016.

(1)

Pretax loss for the three-month periods ended March 31, 2024 and 2023 is presented net of amounts attributable to noncontrolling interests of zero and $(0.7) million, respectively.

(2)

We incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees

- 51 -

primarily associated with our acquisitions of Willis Re, Buck, which closed on April 3, 2023, and the acquisitions of Cadence Insurance, Eastern Insurance and My Plan Manager, all of which closed in fourth quarter 2023.

(3)

Corporate pretax loss includes a net unrealized foreign exchange remeasurement gain of $0.6 million in first quarter 2024 and a net unrealized foreign exchange remeasurement loss of $(0.1) million in first quarter 2023.

Interest and banking costs and debt - Interest and banking costs includes expenses related to our debt.

Clean energy ~~related includes~~- For 2024, this consists of the operating results related to our investments in new clean ~~coal production plants and Chem-Mod.~~ energy projects.

Acquisition costs ~~include~~- Consists mostly of external professional fees and other due diligence ~~and other~~ costs ~~incurred~~ related to our acquisitions. On occasion, we enter into forward currency hedges for the purchase price of committed, but not yet funded, acquisitions with funding requirements in currencies other than the U.S. dollar. The gains or losses, if any, associated with these hedge transactions are also included in acquisition costs.

Corporate ~~consists~~- Consists of overhead allocations mostly related to corporate staff compensation, ~~and~~ other corporate level activities, ~~costs~~and net unrealized foreign exchange remeasurement. In addition, it includes the tax expense related to ~~a biennial company-wide award, cross-selling~~partial taxation of foreign earnings, nondeductible executive compensation and ~~motivational meeting for our production staff and field management,~~entertainment expenses, ~~related to our new corporate headquarters, corporate related marketing costs and expenses for systems and consulting related to~~ the ~~implementation~~tax benefit from vesting of ~~the new revenue recognition accounting rules.~~

~~- 54 -~~

~~Corporate -~~~~During the nine-month period ended September 30, 2017, we incurred $8.4 million ofpre-tax~~ costs related to implementing a new accounting standard related to how companies recognize revenue, which will be effective beginning in January 2018. We expect to incur costs related to implementing this new accounting standard in each of the next two quarters. These charges will be presentedemployee equity awards, as well as other permanent or discrete tax items not reflected in the ~~corporate segment. A new accounting pronouncement, ASUNo. 2016-09,~~ ~~Improvements to Employee Share-Based Payment Accounting, was effective January 1, 2017. It requires that the~~provision for income ~~tax effects of awards be recognized~~taxes in the ~~income statement (in the Income Tax Benefit column above) when the awards vest or are settled, rather than recognizing the tax benefits in excess of compensation costs through stockholders’ equity.~~brokerage and risk management segments. The income tax benefit of ~~stock based~~stock-based awards that vested or were settled in the ~~nine-month period~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and 2023, was ~~$11.9~~$46.4 million and $29.9 million, respectively, and is included in the table above in the Corporate line. The income tax benefit of stock based awards that vested or were settled in the nine-month period ended September 30, 2016 were $4.8 million and are not included in the Income Tax Benefit column above.

~~Litigation Settlement -~~ During the third quarter of 2015, we settled litigation against certain former U.K. executives and their advisors for a pretax gain of $31.0 million ($22.3 million net of costs and taxes). Incremental expenses that arose in connection with this matter resulted in quarterly~~after-tax~~ ~~charges being incurred through September 30, 2017 were $8.8 million.~~

~~Home Office Lease Termination/Move -~~ ~~During first quarter 2017, we relocated our corporate office headquarters to a nearby suburb of Chicago. Move-relatedafter-tax~~ ~~charges were $7.9 million in the first nine months of 2017.After-tax~~ ~~move related charges are expected to total approximately $0.5 million in the fourth quarter of 2017.~~

Clean energy investments - We have investments in limited liability companies that own 29 clean coal production plants developed by us and five clean coal production plants we purchased from a third party on September 1, 2013. All 34 plants produce refined coalusingpropriety technologies owned by Chem-Mod. We believe that the production and sale of refined coal at these plants are qualified to receive refined coal tax credits under IRC Section 45. The fourteen plants which were placed in service prior to December 31, 2009 (which we refer to as the 2009 Era Plants) can receive tax credits through 2019 and the twenty plants which were placed in service prior to December 31, 2011 (which we refer to as the 2011 Era Plants) can receive tax credits through 2021.

~~The following table provides a summary of our clean coal plant investments as of September 30, 2017 (in millions):~~

   Our
Tax-Effected
Book Value At
September 30, 2017    Additional
Required
Tax-Effected
Capital
Investment    Low Range 2017
After-tax
Earnings    High Range 2017
After-tax
Earnings
Investments that own 2009 Era Plants

12

Under long-term production contracts
   $ 6.9    $ —      $ 16.0    $ 18.0
  2

Not currently active in negotiations for long-term production contracts
   —      Not Estimable    Not Estimable    Not Estimable
Investments that own 2011 Era Plants

19

Under long-term production contracts
   37.5    —      91.0    93.0
  1

In early stages of negotiations for long-term production contract
   0.2    Not Estimable    Not Estimable    Not Estimable
Chem-Mod royalty income, net of noncontrolling interests
   2.4    —      16.0    18.0

~~The estimated earnings information in the table reflects management’s current best estimate of the 2017 low and high ranges ofafter-tax~~ earnings based on early production estimates from the host utilities, other operating assumptions, and U.S. Federal income tax laws in place at September 30, 2017. However, coal-fired power plants may not ultimately produce refined fuel at estimated levels due to seasonal electricity demand, production costs, natural gas prices, weather conditions, as well as many other operational, regulatory and environmental compliance reasons. Future changes in EPA regulations or U.S. Federal income tax laws might materially impact these estimates. Please refer to our filings with the ~~SEC,~~Securities Exchange Commission, including Item 1A, “Risk Factors,” on pages ~~18, 19 and 20~~11 through 30 of our Annual Report on Form~~10-K~~ 10‑K for the fiscal year ended December 31, ~~2016,~~2023, for a more detailed discussion of these and other factors that could impact the information above.

Liquidity and Capital Resources

~~- 55 -~~

Our investment in Chem-Mod generates royalty income from refined coal plants owned by those limited liability companies in which we invest as well as refined coal production plants owned by other unrelated parties. Future changes in EPA regulations or U.S. Federal income tax laws might materially impact these estimates.

~~In our most recent Annual Report onForm 10-K,~~ ~~we disclosed that on February 10, 2017 one of the refined coal partnerships in which we are an investor received a notice from the IRS setting forth its view that certain of ourco-investors~~ ~~are unable to claim tax credits based on the structure of the partnership. On June 15, 2017, the IRS issued a final notice to the same refined coal partnership disallowing ourco-investors~~ ~~from claiming tax credits. The position taken by the IRS has the potential to affect, and the IRS has opened audits of, other partnerships in which theseco-investors~~ are invested. However, the IRS notices do not challenge the validity of the tax credits themselves, or our ability to utilize tax credits. The partnership affected by the June 15, 2017 notice will defend its position in tax court. However, litigation is inherently uncertain and it is not possible to predict the ultimate disposition of this proceeding.

~~Financial Condition and Liquidity~~

Liquidity describes the ability of a company to generate sufficient cash flows to meet the cash requirements of its business operations. The insurance brokerage ~~industry is~~and risk management industries are not capital intensive. Historically, our capital requirements have primarily included dividend payments on our common stock, repurchases of our common stock, funding of our investments, acquisitions of brokerage and risk management operations and capital ~~expenditures.~~expenditures, including investments being made in IT software development projects.

On April 3, 2023, we acquired the partnership interests of Buck. We funded the transaction using free cash flow and funds received from an unsecured senior notes offering. The acquired Buck business is a leading provider of retirement, human resources and employee benefits consulting and administration services. Total expected expense to integrate Buck into our operations is approximately $125.0 million.

Operating Cash Flows ~~From Operating Activities~~

Historically, we have depended on our ability to generate positive cash ~~flows~~flow from operations to meet a substantial portion of our cash requirements. We believe that our cash flows from operations and borrowings under our Credit Agreement (as defined below) will provide us with adequate resources to meet our liquidity needs in the foreseeable future. To fund acquisitions made during ~~2016~~2023 and for the ~~nine-month~~three-month period ended ~~September 30, 2017,~~March 31, 2024, we relied on a combination of net cash flows from operations, ~~and~~ proceeds from borrowings under our Credit Agreement, and ~~note purchase agreements.~~proceeds from issuances of senior unsecured notes and issuance of our common stock.

Cash provided by operating activities was ~~$459.1~~$789.3 million and ~~$368.9~~$428.5 million for the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, respectively. The increase in cash provided by operating activities during the~~nine-month~~ three-month period ended ~~September 30, 2017~~March 31, 2024 compared to the same period in ~~2016~~2023, was ~~partially~~primarily due to growth in our core brokerage and risk management operations and timing differences ~~in the~~between periods with cash receipts and disbursements ~~of client fiduciary~~ related ~~balances in 2017 compared~~ to 2016. In addition, we had an unrealized foreign currency measurement gain in 2017 compared to an unrealized foreign currency measurement loss for the same period in 2016. The following table summarizes four lines from our consolidated statement of cash flows,accounts receivables and ~~provides information that management believes is helpful when comparing changes in client fiduciary related balances~~accrued compensation and ~~unrealized foreign currency remeasurement activity in our consolidated statement of cash flows for thenine-month~~ ~~period ended September 30, 2017 with the same period in 2016 (in millions):~~

   Nine-month period
ended September 30,
   2017 2016
Net change in restricted cash
   $ (134.1 ) $ (21.1 )
Net change in premiums receivable
   (261.6 ) (26.7 )
Net change in premiums payable
   198.7 88.4
Unrealized foreign currency remeasurements gain (loss)
   130.8 (41.4 )


Net cash used by the above
   $ (66.2 ) $ (6.8 )

~~In addition, cash provided by operating activities for the nine-month period ended September 30, 2017 was favorably impacted by timing differences in the payment of accrued~~other current liabilities compared to the same period in ~~2016. Our cash flows from operating activities are primarily derived from our earnings from operations, as adjusted for realized gains and losses, and ournon-cash~~ ~~expenses, which include depreciation, amortization, change in estimated acquisition earnout payables, deferred compensation, restricted stock andstock-based~~ ~~and othernon-cash~~ ~~compensation expenses. Cash provided by operating activities can be unfavorably impacted by~~2023.

During the ~~amount of IRC Section 45 tax credits recognized compared~~three-month period ended March 31, 2024 employee matching contributions to the ~~amount~~401(k) plan of ~~tax credits actually used during~~$86.0 million relating to 2023 were funded using common stock. During the ~~respective periods. Excess tax credits produced during~~three-month period ended March 31, 2023, employee matching contributions to the ~~period result in an increase~~401(k) plan of $73.8 million relating to our deferred tax assets, which is a net use of cash related to operating activities. Please see “Clean energy investments” below for more information on their potential future impact on cash provided by operating activities.

2022 were funded using common stock.

~~- 56 -~~

When assessing our overall liquidity, we believe that the focus should be on net earnings as reported in our consolidated statement of earnings, adjusted for~~non-cash~~ non‑cash items (i.e., EBITDAC), and cash provided by operating activities in our consolidated statement of cash

- 52 -

flows. Consolidated EBITDAC was ~~$705.6~~$1,056.5 million and ~~$652.3~~$874.9 million for the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, respectively. Net earnings attributable to controlling ~~interest~~interests were ~~$358.0~~$608.4 million and ~~$319.3~~$486.5 million for the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, respectively. We believe that EBITDAC items are indicators of trends in liquidity. From a balance sheet perspective, we believe the focus should not be on premiums and fees receivable, premiums payable or restricted cash for trends in liquidity. Net cash flows provided by operations will vary substantially from quarter to quarter and year to year because of the variability in the timing of premiums and fees receivable and premiums payable. We believe that in order to consider these items in assessing our trends in liquidity, they should be looked at in a combined manner, because changes in these balances are interrelated and are based on the timing of premium payments, both to and from us. In addition, funds legally restricted as to our use relating to premiums and clients’ claim funds held by us in a fiduciary capacity are presented in our consolidated balance sheet as “Restricted Cash” and have not been included in determining our overall liquidity.

Defined Benefit Pension Plan

Our policy for funding our defined benefit pension plan is to contribute amounts at least sufficient to meet the minimum funding requirements under the IRC. The Employee Retirement Income Security Act of 1974, as amended (which we refer to as ERISA), could impose a minimum funding requirement for our plan. We are not required to make any minimum contributions to the plan for the ~~2017~~2024 plan year, nor were we required to make any minimum contributions to the plan for the ~~2016~~2023 plan year. Funding requirements are based on the plan being frozen and the aggregate amount of our historical funding. The plan’s actuaries determine contribution rates based on our funding practices and requirements. Funding amounts may be influenced by future asset performance, the level of discount rates and other variables impacting the assets and/or liabilities of the plan. In addition, amounts funded in the future, to the extent not due under regulatory requirements, may be affected by alternative uses of our cash flows, including dividends, acquisitions and common stock repurchases. We did not make any discretionary contributions to the plan during the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016.~~2023. We are not considering making ~~additional~~any discretionary contributions to the plan in ~~2017,~~2024, but may be required to make ~~significantly larger~~ minimum contributions to the plan in future periods.

Investing Cash Flows ~~From Investing Activities~~

Capital Expenditures -~~Net capital~~Capital expenditures were ~~$93.8 million and $138.8~~$29.7 million for each of the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016, respectively.~~2023. In ~~2017,~~2024, we expect total expenditures for capital improvements to be approximately ~~$135.0~~$175.0 million, part of which is related to expenditures on ~~our new corporate headquarters building (approximately $30.0 million),~~ office moves and ~~expansions~~investments being made in IT and ~~updating computer systems and equipment. Relating~~software development projects. Capital expenditures are flat in 2024 compared to 2023 primarily due to investments in information technology, offset by the ~~development~~movement of ~~our new corporate headquarters, we expect~~information technology to ~~receive property tax~~cloud computing based technology from in‑house hosted environments. Expenditures made related ~~credits under atax-increment~~ financing note from Rolling Meadows, Illinois and an Illinois state Edge tax credit. Incentives from these two programs could total between $60.0 million and $80.0 million over a fifteen-year period starting in late 2016to cloud computing based technology are accounted for ~~the Edge tax credit and 2017 for thetax-increment~~ ~~financing note.~~as deferred costs versus fixed assets, which would reduce capital expenditures.

Acquisitions - Cash paid for acquisitions, net of cash and restricted cash acquired, ~~were $320.5~~was $251.2 million and ~~$147.0~~$311.4 million in the~~nine-month~~ three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, respectively. In addition, during the ~~nine-month~~three-month period ended ~~September 30, 2017,~~March 31, 2024, we issued ~~0.7~~0.4 million shares ($~~43.2~~88.3 million) of our common stock as payment for a portion of the total consideration paid for ~~2017~~2024 acquisitions and earnout payments made in ~~2017.~~2024. During the~~nine-month~~ three-month period ended ~~September 30, 2016,~~March 31, 2023, we issued ~~1.9~~1.0 million shares ($~~85.7~~185.5 million) of our common stock as payment for consideration paid for ~~2016~~2023 acquisitions and earnout payments made in ~~2016.~~2023. We completed ~~thirty acquisitions~~twelve and ~~twenty-eight~~ten acquisitions in the~~nine-month~~ three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, respectively. Annualized revenues of businesses acquired in the~~nine-month~~ three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016~~2023 totaled approximately ~~$143.0~~$69.2 million and ~~$97.8~~$69.0 million, respectively. WeFor the remainder of 2024, we expect to use new debt, our Credit Agreement, cash from operations and ~~debt~~our common stock, or a combination thereof to fund all ~~or a portion~~ of the acquisitions we ~~complete through~~complete.

If liquidity concerns arise, we may be more likely to issue common stock to fund acquisitions.

Dispositions - During each of the ~~remainder of 2017.~~

~~Dispositions~~-~~During the nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, we sold several books of business and recognized~~one-time~~ net gains of ~~$3.1 million and $4.7 million, respectively.~~$0.3 million. We received net cash proceeds of ~~$2.9 million and $7.3~~$0.1 million related ~~to the 2017 and 2016 transactions, respectively.~~

~~Clean Energy Investments~~-~~During the period 2009 through 2017, we have made significant investments~~ in ~~clean energy operations capable of producing refined coal that we believe qualifies for tax credits under IRC Section 45. Our current estimate~~each of the ~~2017 annualafter-tax~~ ~~earnings, including IRC Section 45 tax credits, which will be~~

2024 and 2023 transactions.

~~- 57 -~~

produced from all of our clean energy investments in 2017, is $123.0 million to $129.0 million. The IRC Section 45 tax credits generate positive cash flow by reducing the amount of Federal income taxes we pay, which is offset by the operating expenses of the plants, by capital expenditures related to the redeployment, and in some cases the relocation of refined coal plants. We anticipate positive net cash flow related to IRC Section 45 activity in 2017. However, there are several variables that can impact net cash flow from clean energy investments in any given year. Therefore, accurately predicting positive or negative cash flow in particular future periods is not possible at this time. Nonetheless, if current ownership interests remain the same, if capital expenditures related to redeployment and relocation of refined coal plants remains as currently anticipated, and if we continue to generate sufficient taxable income to use the tax credits produced by our IRC Section 45 investments, we anticipate that these investments will continue to generate positive net cash flows for the period 2017 through at least 2021. While we cannot precisely forecast the cash flow impact in any particular period, we anticipate that the net cash flow impact of these investments will be positive overall. Please see “Clean energy investments” on pages 55 and 56 for a more detailed description of the investments and their risks and uncertainties.

Financing Cash Flows ~~From Financing Activities~~

~~On April 8, 2016,~~At March 31, 2024, we entered into an amendment and restatement to our multicurrency credit agreement dated September 19, 2013 (which we refer to as the Credit Agreement) with a group of fifteen financial institutions. The amendment and restatement, among other things, extended the expiration date of the Credit Agreement from September 19, 2018 to April 8, 2021 and increased the revolving credit commitment from $600.0 million to $800.0had $4,550.0 million of ~~which $75.0~~Senior Notes, $3,523.0 million ~~may be used for issuances~~ of standby or commercial letters of credit and up to $75.0 million may be used for the making of swing loans (as defined in the Credit Agreement). We may from time to time request, subject to certain conditions, an increase in the revolving credit commitment under the Credit Agreement up to a maximum aggregate revolving credit commitment of $1,100.0 million. At September 30, 2017, $75.0corporate related borrowings outstanding, $108.2 million of borrowings ~~were~~ outstanding ~~under the Credit Agreement. Due to borrowings and $20.7 million of outstanding letters of credit, $704.3 million remained available under the Credit Agreement at September 30, 2017.~~

We use the Credit Agreement to post letters of credit and to borrow funds to supplement our operating cash flows from time to time. In the nine-month period ended September 30, 2017, we borrowed $3,223.0 million and repaid $3,426.0 million under our Credit ~~Agreement. In the nine-month period ended September 30, 2016 we borrowed $1,619.5~~Agreement, $184.3 million ~~and repaid $1,556.5 million~~of borrowings outstanding under ~~the Credit Agreement. Principal uses of the 2017 and 2016 borrowings were to fund acquisitions, make earnout payments related to acquisitions and for general corporate purposes.~~

~~We have a secured revolving loan facility (which we refer to as the~~our Premium Financing Debt ~~Facility), that provides funding for three Australian (AU) and New Zealand (NZ) premium finance subsidiaries. The Premium Financing Debt~~ Facility is comprised of: (i) Facility B, which is separated into AU$160.0 million and NZ$25.0 million tranches, (ii) Facility C, an AU$25.0 million equivalent multi-currency overdraft tranche and (iii) Facility D, a NZ$15.0 million equivalent multi-currency overdraft tranche. The Premium Financing Debt Facility expires May 18, 2019. At September 30, 2017, $156.4 million of borrowings were outstanding under the Premium Financing Debt Facility.

~~At September 30, 2017, we had $2,798.0 million ofcorporate-related~~ ~~borrowings outstanding under separate note purchase agreements entered into during the period from 2007 to 2017, and our credit facility,~~ and a cash and cash equivalent balance of ~~$564.9~~$1,762.6 million. ~~See Note 6 to our unaudited consolidated financial statements for a discussion~~

During the three-month period ended March 31, 2024, we settled approximately $1.4 million of ~~the terms of the note purchase agreements, the Credit Agreement and the Premium Financing Debt Facility.~~

~~We completed a $275.0 million, private placement debt transaction in the second quarter of 2016,~~interest rate contracts hedges with a ~~weighted average interest rate~~notional value of ~~4.47%. In 2016, we entered into apre-issuance~~ ~~interest rate hedging transaction related to the $175.0~~$150.0 million ~~ten year tranche, of the $275.0 million private placement debt. We realized a cash gain of approximately $1.0 million on the hedging transaction~~ that will be ~~recognized on a pro rata basis as a reduction in our reported~~amortized into interest expense ~~over the life of the debt.~~in future periods.

~~On November 30, 2016, we funded the $50.0 million 2016 maturity of our Series C note.~~

We completed a $100.0 million, private placement debt transaction in the fourth quarter of 2016, with an interest rate of 3.46%. A portion of the proceeds was used to fund the $50.0 million of private placement debt that matured on November 30, 2016.

~~- 58 -~~

On June 13, 2017, we announced that we planned to close offerings of $648.0 million aggregate principal amount of private placement senior unsecured notes (both fixed and floating rate). We funded $250.0 million on June 27, 2017, $300.0 million on August 2, 2017 and $98.0 million on August 4, 2017, which was used in part to repay our $300.0 million August 3, 2017 debt maturity. The weighted average maturity of the $598.0 million of senior fixed rate notes is 11.6 years and their weighted average interest rate is 4.04% after giving effect to hedging gains. The interest rate on the $50.0 million of floating rate notes would be 3.02% using three-month LIBOR on October 24, 2017. In 2016 and 2017, we entered into~~pre-issuance~~ interest rate hedging transactions related to the $300.0 million August 3, 2017 maturity private placement. We realized a cash gain of approximately $8.3 million on the hedging transaction that will be recognized on a pro rata basis as a reduction in our reported interest expense over the life of the debt.

~~We used the proceeds of these offerings to repay certain existing indebtedness.~~

~~Consistent with past practice, we have entered intopre-issuance~~ ~~hedging transaction for $200.0 million related to each of the 2018 and 2019, $100.0 million debt maturities.~~

~~The note purchase agreements,~~Senior Notes, Note Purchase Agreements, the Credit Agreement and the Premium Financing Debt Facility contain various financial covenants that require us to maintain specified financial ratios. We were in compliance with these covenants at ~~September 30, 2017.~~March 31, 2024.

Senior Notes - On February 12, 2024, we closed and funded an offering of $1,000.0 million of unsecured senior notes in two tranches. The $500.0 million aggregate principal amount of 5.45% Senior Notes is due in 2034 (which we refer to as the 2034 July Notes) and $500.0 million aggregate principal amount of 5.75% Senior Notes is due in 2054 (which we refer to as the 2054 July Notes). The weighted average interest rate is 5.71% per annum after giving effect to underwriting costs and a net hedge loss. During 2023, we entered into a pre-issuance interest rate hedging transaction related to these notes. We realized a net cash loss of approximately $1.4 million on the hedging transactions that will be recognized on a pro rata basis as an increase to our reported interest expense over

- 53 -

ten years. We used the proceeds of these offerings to fund acquisitions, earnout payments related to acquisitions and general corporate purposes.
On November 2, 2023, we closed and funded an offering of $1,000.0 million of unsecured senior notes in two tranches. The $400.0 million aggregate principal amount of 6.50% Senior Notes is due in 2034 (which we refer to as the 2034 Notes) and $600.0 million aggregate principal amount of 6.75% Senior Notes is due in 2054 (which we refer to as the 2054 Notes). The weighted average interest rate is 5.97% per annum after giving effect to underwriting costs and a net hedge gain. During 2021 through 2023, we entered into a pre-issuance interest rate hedging transaction related to these notes. We realized a net cash gain of approximately $128.0 million on the hedging transactions that will be recognized on a pro rata basis as a decrease to our reported interest expense over ten years. We used the proceeds of these offerings to fund acquisitions, earnout payments related to acquisitions and general corporate purposes.
On March 2, 2023, we closed and funded an offering of $950.0 million of unsecured senior notes in two tranches. The $350.0 million aggregate principal amount of 5.50% Senior Notes is due in 2033 (which we refer to as the 2033 Notes) and $600.0 million aggregate principal amount of 5.75% Senior Notes is due in 2053 (which we refer to as the 2053 Notes). The weighted average interest rate is 5.05% per annum after giving effect to underwriting costs and a net hedge gain. During 2019 through 2022, we entered into a pre‑issuance interest rate hedging transaction related to these notes. We realized a net cash gain of approximately $112.7 million on the hedging transactions that will be recognized on a pro rata basis as a decrease to our reported interest expense over ten years. We used the proceeds of these offerings to fund acquisitions, earnout payments related to acquisitions and general corporate purposes.
Note Purchase Agreement - During February 2024, we used operating cash to fund the $100.0 million Series HH note maturity that had a fixed rate of 4.72% that was due February 13, 2024.
During February 2024, we used operating cash to fund the $325.0 million Series H note maturity that had a fixed rate of 4.58% that was due February 27, 2024.
During June 2023, we used operating cash to fund the $200.0 million Series N note maturity that had a fixed rate of 4.13% that was due June 24, 2023.
During June 2023, we used operating cash to fund the prepayment of the $50.0 million Series CC note that had a floating rate of 90 day LIBOR plus 1.40%, balloon that was originally due on June 13, 2024.
During February 2023, we used operating cash to fund the $50.0 million Series E note maturity that had a fixed rate of 5.49% that was due February 10, 2023.
Credit Agreement - There were $108.2 million of borrowings outstanding under the Credit Agreement at March 31, 2024. Due to the outstanding borrowing and letters of credit, $1,580.2 million remained available for potential borrowings under the Credit Agreement at March 31, 2024.
We use the Credit Agreement to post letters of credit and to borrow funds to supplement our operating cash flows from time to time. In the three-month period ended March 31, 2024, we borrowed an aggregate of $1,078.2 million and repaid $1,215.0 million under our Credit Agreement. Principal uses of the 2024 and 2023 borrowings under the Credit Agreement were to fund acquisitions, earnout payments related to acquisitions and general corporate purposes.
Premium Financing Debt Facility - On October 31, 2023, we entered into an amendment to our revolving loan facility (which we refer to as the Premium Financing Debt Facility), that provides funding for the three Australian (AU) and New Zealand (NZ) premium finance subsidiaries. The Premium Financing Debt Facility is comprised of: (i) Facility B, which is separated into AU$390.0 million and NZ$25.0 million tranches (the NZ$ tranche will be decreased as of May 1, 2024 to NZ$10.0 million), (ii) Facility C, which is an AU$60.0 million equivalent multi-currency overdraft tranche and (iii) Facility D, which is a NZ$15.0 million equivalent multi-currency overdraft tranche.
At March 31, 2024, AU$270.0 million of borrowings were outstanding under Facility B, with no borrowings outstanding under the NZ$ tranche of Facility B. There were no borrowings outstanding under Facility C and NZ$13.6 million of borrowings were outstanding under Facility D, which in aggregate amount to US$184.3 million of borrowings outstanding under the Premium Financing Debt Facility.
- 54 -

Dividends-Our board of directors determines our dividend policy. Our board of directors determines dividends on our common stock on a quarterly basis after considering our available cash from earnings, our anticipated cash needs and current conditions in the economy and financial markets.

In the ~~nine-month~~three-month period ended ~~September 30, 2017,~~March 31, 2024, we declared ~~$212.3~~$132.0 million in cash dividends on our common stock, or ~~$0.39~~$0.60 per common share, a 3%9% increase over the ~~nine-month~~three-month period ended ~~September 30, 2016.~~March 31, 2023. On ~~October 25, 2017,~~April 24, 2024, we announced a quarterly dividend for ~~fourth~~first quarter ~~2017~~2024 of ~~$0.39~~$0.60 per common share. This dividend level in ~~2017~~2024 will result in annualized net cash used by financing activities in ~~2017~~2024 of approximately ~~$281.8~~$522.7 million (based on the number of outstanding shares as of ~~September 30, 2017)~~March 31, 2024) or an anticipated increase in cash used of approximately ~~$9.6~~$49.1 million compared to ~~2016.~~2023. We make no assurances regarding the amount of any future dividend ~~payments.~~payments.

Shelf Registration Statement -On ~~November 15, 2016,~~February 12, 2024, we filed a shelf registration statement onForm S-3 with the SEC, registering the offer and sale from time to time, of an indeterminate amount of ~~our~~debt securities, guarantees, common ~~stock.~~stock, preferred stock, warrants, depositary shares, purchase contracts, or units. The availability of the potential liquidity under this shelf registration statement depends on investor demand, market conditions and other factors. We make no assurances regarding when, or if, we will issue any ~~shares~~securities under this registration statement. On ~~April 2, 2015,~~November 15, 2022, we filed a shelf registration statement on FormS-4 with the with the SEC, registering ~~8.0~~7.0 million shares of our common stock that we may offer and issue from time to time in connection with future acquisitions of other businesses, assets or securities. At ~~September 30, 2017, 0.3~~March 31, 2024, 5.8 million shares remained available for issuance under this registration statement. ~~On November 15, 2016, we filed another shelf registration statement on FormS-4~~ ~~with the SEC, registering an additional 10.0 million shares of our common stock, none of which had been issued as of September 30, 2017.~~

Common Stock Repurchases-We have in place a common stock repurchase plan ~~last amended~~approved by our board of directors in ~~2008, for~~July 2021, that authorizesthe repurchase of up to ~~10,000,000 shares.~~$1.5 billion of common stock. During the three-month ~~period~~periods ended ~~September 30, 2017,~~March 31, 2024 and 2023, we did not repurchase ~~any shares under the plan (7.7 million shares remain available). During the nine-month period ended September 30, 2016, we repurchased 2.3 million~~ shares of our common ~~stock at a cost of $101.0 million.~~stock. The plan authorizes the repurchase of our common stock at such times and prices, as we may deem advantageous, in transactions on the open market or in privately negotiated transactions. We are under no commitment or obligation to repurchase any particular number of shares, and the plan may be suspended at any time at our discretion. Funding for share repurchases may come from a variety of sources, including cash from operations, short-term or ~~long-term~~long‑term borrowings under our Credit Agreement or other sources. See “Issuer Purchases of Equity Securities” below for more information regarding shares repurchased during the quarter.

At-the-Market Equity Program - On March 14, 2024, we entered into an updated Equity Distribution Agreement with Morgan Stanley & Co. LLC, pursuant to which we may offer and sell, from time to time, up to 3,000,000 shares of our common stock through Morgan Stanley as sales agent. We intend to use the net proceeds of sales under this program to fund future acquisitions from time to time or for general corporate purposes. Pursuant to the agreement, shares may be sold by means of ordinary brokers’ transactions, including on the New York Stock Exchange, at market prices prevailing at the time of sale, at prices related to the prevailing market prices, or at negotiated prices, in block transactions, or as otherwise agreed upon by us and Morgan Stanley. During the quarter ended March 31, 2024, we did not sell shares of our common stock under the program.

Common Stock Issuances- Another source of liquidity to us is the issuance of our common stock pursuant to our stock option and employee stock purchase plans. Proceeds from the issuance of common stock under these plans for the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, were ~~$50.2~~$52.0 million and ~~$36.8~~$30.3 million, respectively. On May ~~16, 2017,~~10, 2022, our stockholders approved the ~~2017~~2022 Long-Term Incentive Plan (which we refer to as the LTIP), which replaced our previous stockholder-approved ~~2014~~2017 Long-Term Incentive Plan. All of our officers, employees and non-employee directors are eligible to receive awards under the LTIP. Awards ~~which~~that may be granted under the LTIP includenon-qualified and incentive stock options, stock appreciation rights, restricted stock units and performance units, any or all of which may be made contingent upon the achievement of performance criteria. Stock options with respect to ~~16.1~~10.8 million shares (less any shares of restricted stock issued under the LTIP ~~– 4.0~~- 2.5 million shares of our

~~- 59 -~~

common stock were available for this purpose as of ~~September 30, 2017)~~March 31, 2024) were available for grant under the LTIP at ~~September 30, 2017.~~March 31, 2024. Our employee stock purchase plan allows our employees to purchase our common stock at 95% of its fair market value. Proceeds from the issuance of our common stock related to these plans have contributed favorably to net cash provided by financing activities in the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, and we believe this favorable trend will continue in the foreseeable future.

We have a qualified contributory savings and thrift 401(k) plan covering the majority of our domestic employees. For eligible employees who have met the plan’s age and service requirements to receive matching contributions, we historically have matched 100% of pre-tax and Roth elective deferrals up to a maximum of 5.0% of eligible compensation, subject to federal limits on plan contributions and not in excess of the maximum amount deductible for federal income tax purposes. Beginning with the match paid in 2021, the amount matched by the company will be discretionary and annually determined by management. Employees must be employed and eligible for the plan on the last day of the plan year to receive a matching contribution, subject to certain exceptions enumerated in the plan document. Matching contributions are subject to a five-year graduated vesting schedule and can be funded in cash or company stock. We expensed (net of plan forfeitures) $26.1 million and $21.0 million related to the plan in the three-month periods ended March 31, 2024 and 2023, respectively. During 2023, our board of directors authorized the 5.0% employer matching

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contribution on eligible compensation to the 401(k) plan for the 2023 plan year to be funded with our common stock, which we funded in February 2024. During 2022, our board of directors authorized the 5.0% employer matching contribution on eligible compensation to the 401(k) plan for the 2022 plan year to be funded with our common stock, which we funded in February 2023.

Outlook -We believe that we have sufficient capital and access to additional capital to meet our short- and long-term cash flow needs.

~~Contractual Obligations and Commitments~~

In connection with our investing and operating activities, we have entered into certain contractual obligations and commitments. See Note 13 to our unaudited consolidated financial statements for a discussion of these obligations and commitments. In addition, see Note 15 to the consolidated financial statements included in our Annual Report on~~Form 10-K~~ ~~for the year ended December 31, 2016 for additional discussion of these obligations and commitments.~~

~~Off-Balance~~ ~~Sheet Arrangements~~

~~See Notes 6, 11 and 13 to the unaudited consolidated financial statements for a discussion of ouroff-balance~~ ~~sheet arrangements. In addition, see Notes 7, 13 and 15 to the consolidated financial statements included in our Annual Report onForm 10-K~~ ~~for the year ended December 31, 2016 for additional discussion of theseoff-balance~~ ~~sheet arrangements.~~

Critical Accounting ~~Policies~~Estimates

There have been no changes in our critical accounting ~~policies,~~estimates, which include revenue recognition, income taxes and intangible assets/earnout obligations, as discussed in our Annual Report onForm 10-K for the year ended December 31, ~~2016.~~2023.

Business Combinations and Dispositions

See Note 3 to the unaudited consolidated financial statements for a discussion of our business combinations during the ~~nine-month~~three-month period ended ~~September 30, 2017.~~March 31, 2024. We did not have any material dispositions during the ~~nine-month periods~~three-month period ended ~~September 30, 2017~~March 31, 2024.

Item 3. Quantitative and ~~2016.~~Qualitative Disclosures About Market Risk

~~Item 3.~~

~~Quantitative and Qualitative Disclosures About Market Risk~~

We are exposed to various market risks in our day to day operations. Market risk is the potential loss arising from adverse changes in market rates and prices, such as interest and foreign currency exchange rates and equity prices. The following analyses present the hypothetical loss in fair value of the financial instruments held by us at ~~September 30, 2017~~March 31, 2024 that are sensitive to changes in interest rates. The range of changes in interest rates used in the analyses reflects our view of changes that are reasonably possible over a~~one-year~~ one‑year period. This discussion of market risks related to our consolidated balance sheet includes estimates of future economic environments caused by changes in market risks. The effect of actual changes in these market risk factors may differ materially from our estimates. In the ordinary course of business, we also face risks that are either nonfinancial or unquantifiable, including credit risk and legal risk. These risks are not included in the following analyses.

Our invested assets are primarily held as cash and cash equivalents, which are subject to various market risk exposures such as interest rate risk. The fair value of our portfolio of cash and cash equivalents at ~~September 30, 2017~~March 31, 2024 approximated its carrying value due to its ~~short-term~~short‑term duration. We estimated market risk as the potential decrease in fair value resulting from a hypothetical~~one-percentage~~ one‑percentage point increase in interest rates for the instruments contained in the cash and cash equivalents investment portfolio. The resulting fair values were not materially different from ~~the~~their carrying values at ~~September 30, 2017.~~March 31, 2024.

At ~~September 30, 2017,~~March 31, 2024, we had ~~$2,798.0~~$8,073.0 million of borrowings outstanding under our various senior notes and note purchase agreements. The aggregate estimated fair value of these borrowings at ~~September 30, 2017~~March 31, 2024 was ~~$2,922.4~~$7,323.5 million due to their~~long-term~~ long‑term duration and fixed interest rates associated with these debt obligations. No active or observable market exists for our private placement long-term debt. Therefore, the estimated fair value of this debt is based on the income valuation approach, which is a valuation technique that converts future amounts (for example, cash flows or income and expenses) to a single current (that is, discounted) amount. The fair value measurement is determined on the basis of the value indicated by current market expectations about those future amounts. Because our debt issuances generate a measurable income stream for each lender, the income approach was deemed to be an appropriate methodology for valuing the private placement long-term debt. The methodology used calculated the original deal

~~- 60 -~~

spread at the time of each debt issuance, which was equal to the difference between the yield of each issuance (the coupon rate) and the equivalent benchmark treasury yield at that time. The market spread as of the valuation date was calculated, which is equal to the difference between an index for investment grade insurers and the equivalent benchmark treasury yield today. An implied premium or discount to the par value of each debt issuance based on the difference between the origination deal spread and market as of the valuation date was then calculated. The index we relied on to represent investment graded insurers was the Bloomberg Valuation Services (BVAL) U.S. Insurers BBB index. This index is comprised primarily of insurance brokerage firms and was representative of the industry in which we operate. For the ~~purposes~~purpose of ~~this~~our analysis, the average BBB rate was assumed to be the appropriate borrowing rate for ~~us based on our current estimated credit rating.~~us.

We estimated market risk as the potential impact on the value of the debt recorded in our consolidated balance sheet ~~resulting from~~based on a hypothetical~~one-percentage~~ one‑percentage point decrease in our weighted average borrowing rate at ~~September 30, 2017~~March 31, 2024 and the resulting fair values would have been ~~$321.7~~$75.3 million ~~higher~~lower than their carrying value (or ~~$3,119.7~~$7,997.7 million). We estimated market risk as the potential impact on the value of the debt recorded in our consolidated balance sheet resulting from a hypothetical~~one-percentage~~ one‑percentage point increase in our weighted average borrowing rate at ~~September 30, 2017~~March 31, 2024 and the resulting fair values would have been ~~$57.0~~$1,328.7 million lower than their carrying value (or ~~$2,741.0~~$6,744.3 million).

At ~~September 30, 2017,~~March 31, 2024, we had ~~$75.0~~$108.2 million of borrowings outstanding under our Credit ~~Agreement. The fair value of these borrowings approximate their carrying value due to their short-term duration~~Agreement and ~~variable interest rates associated with these debt obligations. Market risk is estimated as the potential increase in fair value resulting from a hypotheticalone-percentage~~ ~~point decrease in our weighted average short-term borrowing rate at September 30, 2017, and the resulting fair value is not materially different from their carrying value.~~

~~At September 30, 2017, we had $156.4~~$184.3 million of borrowings outstanding under our Premium Financing Debt Facility. The fair value of these borrowings approximate their carrying value due to their ~~short-term~~short‑term duration and variable interest rates associated with these debt obligations. Market risk is estimated as the potential

- 56 -

increase in fair value resulting from a hypothetical~~one-percentage~~ one‑percentage point decrease in our weighted average short-term borrowing rate at ~~September 30, 2017,~~March 31, 2024, and the resulting fair value is not materially different from their carrying value.

We are subject to foreign currency exchange rate risk primarily from one of our larger U.K. based brokerage subsidiaries that incurs expenses denominated primarily in British pounds while receiving a substantial portion of its revenues in U.S. dollars. Please see Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information regarding potential foreign exchange rate risks arising from Brexit. In addition, we are subject to foreign currency exchange rate risk from our Australian, Canadian, Indian, Jamaican, New Zealand, Norwegian, Singaporean and various Caribbean and ~~South~~Latin American operations because we transact business in their local denominated currencies. Foreign currency gains (losses) related to this market risk are recorded in earnings before income taxes as transactions occur. Assuming a hypothetical adverse change of 10% in the average foreign currency exchange rate for the ~~nine-month~~three-month period ended ~~September 30, 2017~~March 31, 2024 (a weakening of the U.S. dollar), earnings before income taxes would have increased by approximately ~~$9.1~~$25.6 million. Assuming a hypothetical favorable change of 10% in the average foreign currency exchange rate for the ~~nine-month~~three-month period ended ~~September 30, 2017~~March 31, 2024 (a strengthening of the U.S. dollar), earnings before income taxes would have decreased by approximately ~~$3.4~~$28.7 million. We are also subject to foreign currency exchange rate risk associated with the translation of local currencies of our foreign subsidiaries into U.S. dollars. We manage the balance sheets of our foreign subsidiaries, where practical, such that foreign liabilities are matched with equal foreign assets, maintaining a “balanced book” which minimizes the effects of currency fluctuations. However, our consolidated financial position is exposed to foreign currency exchange risk related to intra-entity loans between our U.S. based subsidiaries and ournon-U.S. based subsidiaries that are denominated in the respective local foreign currency. A transaction that is in a foreign currency is first remeasured at the entity’s functional (local) currency, where applicable, (which is an adjustment to consolidated earnings) and then translated to the reporting (U.S. dollar) currency (which is an adjustment to consolidated stockholders’ equity) for consolidated reporting purposes. If the transaction is already denominated in the foreign entity’s functional currency, only the translation to U.S. dollar reporting is necessary. The remeasurement process required by U.S. GAAP for such foreign currency loan transactions will give rise to a consolidated unrealized foreign exchange gain or loss, which could be material, that is recorded in accumulated other comprehensive earnings (loss).

Historically, we have not entered into derivatives or other similar financial instruments for trading or speculative purposes. However, with respect to managing foreign currency exchange rate risk in India, Norway and the U.K., we have periodically purchased financial instruments ~~when market opportunities arose~~ to minimize our exposure to this risk. During the ~~nine-month~~three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, we had several monthly ~~put/call~~forward contracts and options in place with an external financial institution that are designed to hedge a significant portion of our future Norway and the U.K. currency

~~- 61 -~~

revenues ~~(in 2017) and disbursements (in 2016)~~ through various future payment dates. In addition, during the~~nine-month~~ three-month periods ended ~~September 30, 2017~~March 31, 2024 and ~~2016,~~2023, we had several monthly put/call options in place with an external financial institution that were designed to hedge a significant portion of our Indian currency disbursements through various future payment dates. Although these hedging strategies were designed to protect us against significant ~~U.K.~~India, Norway and ~~Indian~~the U.K. currency exchange rate movements, we are still exposed to some foreign currency exchange rate risk for the portion of the payments and currency exchange rate that are unhedged. All of these hedges are accounted for in accordance with ASC Topic 815, “Derivatives and Hedging”, and periodically are tested for effectiveness in accordance with such guidance. In the scenario where such hedge does not pass the effectiveness test, the hedge will be~~re-measured~~ re‑measured at the stated point and the appropriate loss, if applicable, would be recognized. In the ~~nine-month~~three-month period ended ~~September 30, 2017~~March 31, 2024 there has been no such effect on our financial presentation. The impact of these hedging strategies was not material to our unaudited consolidated financial statements for the ~~nine-month periods~~three-month period ended ~~September 30, 2017 and 2016.~~March 31, 2024. See Note 1411 to our unaudited consolidated financial statements for the changes in fair value of ~~the~~these derivative instruments reflected in comprehensive earnings at ~~September 30, 2017.~~March 31, 2024.

Item 4. Controls and Procedures

~~Item 4.~~

~~Controls and Procedures~~

We carried out an evaluation required by the Exchange Act, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule13a-15(e) of the ~~1934~~Exchange Act, as of the end of the period covered by this report. Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the ~~1934~~Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and to provide reasonable assurance that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

During the most recent fiscal quarter, there has not occurred any change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives as specified above. Management does not expect, however, that our disclosure controls and procedures will prevent or detect all ~~error~~errors and fraud. Any

- 57 -

control system, no matter how well designed and operated, is based upon certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within ~~the Company~~our company have been detected.

Part II - Other Information

Item 1. Legal Proceedings

~~Item 1.~~

~~Legal Proceedings~~

Please see the information set forth in Note 1312 to our unaudited consolidated financial statements, included herein, under “Litigation, Regulatory and Taxation Matters.”

Item 1A. Risk Factors

~~Item 1A.~~

~~Risk Factors~~

The risk factors described under the heading “Risk Factors” in our Annual Report on Form10-K for the year ended December 31, ~~2016~~2023 should be considered alongside the information ~~contain~~contained in this report.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

~~- 62 -~~

~~Item 2.~~

~~Unregistered Sales of Equity Securities and Use of Proceeds~~

~~(c)~~ Issuer Purchases of Equity Securities

The following table shows the purchases of our common stock made by or on behalf of us or any “affiliated purchaser” (as such term is defined in Rule ~~10b - 18(a)~~10b-18(a)(3) under the Securities Exchange Act of 1934, as amended) ~~of Gallagher~~ for each fiscal month in the ~~three - month~~three-month period ended ~~September 30, 2017:~~March 31, 2024:


							Maximum Dollar
							Value of Shares
					Total Number of		that May Yet be
	Total				Shares Purchased		Purchased
	Number of		Average		as Part of Publicly		Under the
	Shares		Price Paid		Announced Plans		Plans or
Period	Purchased (1)		per Share (2)		or Programs (3)		Programs (3) (4)
January 1 through January 31, 2024		8,106	$	227.71		—	$	1,500
February 1 through February 29, 2024		3,090		240.83		—		1,500
March 1 through March 31, 2024		160,048		244.03		—		1,500
Total		171,244	$	243.20		—

(1)

Amounts in this column include shares of our common stock purchased by the trustees of trusts established under our Deferred Equity Participation Plan, including sub-plans (which we refer to as the DEPP), our Deferred Cash Participation Plan (which we refer to as the DCPP) and our Supplemental Savings and Thrift Plan (which we refer to as the Supplemental Plan), respectively. These plans are considered to be unfunded for purposes of federal tax law since the assets of these trusts are available to our creditors in the event of our financial insolvency. The DEPP is an unfunded, non-qualified deferred compensation plan that generally provides for distributions to certain of our key executives when they reach age 62 or upon or after their actual retirement. Under sub-plans of the DEPP for certain production staff, the plan generally provides for vesting and/or distributions no sooner than five years from the date of awards, although certain awards vest and/or distribute after the earlier of fifteen years or the participant reaching age 65. See Note 9 to the March 31, 2024 unaudited consolidated financial statements in this report for more information regarding the DEPP. The DCPP is an unfunded, non-qualified deferred compensation plan for certain key employees, other than executive officers, that generally provides for vesting and/or distributions no sooner than five years from the date of awards. Under the terms of the DEPP and the DCPP, we may contribute cash to the trust and instruct the trustee to acquire a specified number of shares of our common stock on the open market or in privately negotiated transactions. In the first quarter of 2024, we instructed the trustee for the DEPP and the DCPP to reinvest dividends on shares of our common stock held by these trusts and to purchase our common stock using cash that we contributed to the DCPP related to 2024 awards under the DCPP. The Supplemental Plan is an unfunded, non-qualified deferred compensation plan that allows certain highly compensated employees to defer compensation, including company match amounts, on a before-tax basis or after‑tax basis. Under the terms of the Supplemental Plan, all amounts credited to an employee’s account may be deemed invested, at the employee’s election, in a number of investment options that include various mutual funds, an annuity product and a fund representing our common stock. When an employee elects to have some or all of the amounts credited to the employee’s account under the Supplemental Plan deemed to be invested in the fund representing our common stock, the trustee of the trust for the Supplemental Plan purchases shares of our common stock in a number sufficient to ensure that the trust holds a number of shares of our common stock with a value equal to all equivalent to the amounts deemed invested in the fund representing our common stock. We want to ensure that at the time when an employee becomes entitled to a distribution under

- 58 -

the terms of the Supplemental Plan, any amounts deemed to be invested in the fund representing our common stock are distributed in the form of shares of our common stock held by the trust. We established the trusts for the DEPP, the DCPP and the Supplemental Plan to assist us in discharging our deferred compensation obligations under these plans. All assets of these trusts, including any shares of our common stock purchased by the trustees, remain, at all times, assets of the company, subject to the claims of our creditors in the event of our financial insolvency. The terms of the DEPP, the DCPP and the Supplemental Plan do not provide for a specified limit on the number of shares of common stock that may be purchased by the respective trustees of the trusts.

(2)

The average price paid per share is calculated on a settlement basis and does not include commissions.

(3)

Effective July 28, 2021, the board of directors approved a common stock repurchase plan of up to $1.5 billion of common stock. Repurchases of common stock may be effected from time to time through open market purchases, trading plans established in accordance with the SEC’s rules, accelerated stock repurchases, private transactions or other means, depending on satisfactory market conditions, applicable legal requirements and other factors. The repurchase plan has no expiration date and we are under no commitment or obligation to repurchase any particular amount of our common stock under his plan. At our discretion, we may suspend the repurchase plan at any time.

(4)

Dollar values stated in millions.

Period
   Total
Number of
Shares
Purchased (1)    Average
Price Paid
per Share (2)    Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs (3)    Maximum Number
of Shares that May
Yet be Purchased
Under the Plans
or Programs (3)
July 1 through July 31, 2017
   —       $ —       —      7,735,489
August 1 through August 31, 2017
   3,183    58.60    —      7,735,489
September 1 through September 30, 2017
   20,783    60.19    —      7,735,489







Total
   23,966    $ 60.00    —

Item 5. Other Information

During the quarter ended March 31, 2024, no director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits

Filed with this Form 10‑Q

~~(1)~~
	Amounts in this column include shares of our common stock purchased by the trustees of rabbi trusts established under our Deferred Equity Participation Plan, including sub - plans (which we refer to as the DEPP), our Deferred Cash Participation Plan (which we refer to as the DCPP) and our Supplemental Savings and Thrift Plan (which we refer to as the Supplemental Plan), respectively. The DEPP is an unfunded, non - qualified deferred compensation plan that generally provides for distributions to certain of our key executives when they reach age 62 or upon or after their actual retirement. Under sub - plans of the DEPP for certain production staff, the plan generally provides for vesting and/or distributions no sooner than five years from the date of awards, although certain awards vest and/or distribute after the earlier of fifteen years or the participant reaching age 65. See Note 9 to the unaudited consolidated financial statements in this report for more information regarding the DEPP. The DCPP is an unfunded, non - qualified deferred compensation plan for certain key employees, other than executive officers, that generally provides for vesting and/or distributions no sooner than five years from the date of awards. Under the terms of the DEPP and the DCPP, we may contribute cash to the rabbi trust and instruct the trustee to acquire a specified number of shares of our common stock on the open market or in privately negotiated transactions. In the third quarter of 2017, we instructed the rabbi trustee for the DEPP and the DCPP to reinvest dividends paid into the plans in our common stock and to purchase our common stock using the cash that was funded into these plans related to the 2017 awards under the DEPP sub - plans. The Supplemental Plan is an unfunded, non - qualified deferred compensation plan that allows certain highly compensated employees to defer amounts, including company match amounts, on a before - tax or after - tax basis. Under the terms of the Supplemental Plan, all cash deferrals and company match amounts may be deemed invested, at the employee’s election, in a number of investment options that include various mutual funds, an annuity product and a fund representing our common stock. When an employee elects to deem his or her amounts under the Supplemental Plan invested in the fund representing our common stock, the trustee of the rabbi trust purchases the number of shares of our common stock equivalent to the amount deemed invested in the fund representing our common stock. We established the rabbi trusts for the DEPP, the DCPP and the Supplemental Plan to assist us in discharging our deferred compensation obligations under these plans. All assets of the rabbi trusts, including any shares of our common stock purchased by the trustees, remain, at all times, assets of the Company, subject to the claims of our creditors. The terms of the DEPP, the DCPP and the Supplemental Plan do not provide for a specified limit on the number of shares of common stock that may be purchased by the respective trustees of the rabbi trusts.

~~(2)~~

~~The average price paid per share is calculated on a settlement basis and does not include commissions.~~

~~(3)~~

We have a common stock repurchase plan that the board of directors adopted on May 10, 1988 and has periodically amended since that date to authorize additional shares for repurchase (the last amendment was on January 24, 2008 and approved the repurchase of 10,000,000 shares). The repurchase plan has no expiration date and we are under no commitment or obligation to repurchase any particular amount of our common stock under the plan. At our discretion, we may suspend the repurchase plan at any time.

~~- 63 -~~

~~Item 5.~~

~~Other Information~~

~~Disclosure pursuant to Section 13(r) of the Exchange Act~~

In third quarter 2017, our U.K. domiciled subsidiary, Arthur J. Gallagher (UK) Limited, and our Norway domiciled subsidiary, Bergvall Marine AS, acted as insurance broker and advised clients in obtaining insurance coverage for activities related to Iran’s oil, gas and petroleum industries. These subsidiaries assisted clients in obtaining insurance, reinsurance and retrocession coverage for a variety of activities in Iran, including insurance coverage for:

~~The supply and transport of oil, crude oil, heavy fuel oil and gas to and from Iran;~~

~~The docking and loading of oil shipments in Iran;~~

~~The operation of vessels providing support services to offshore oil platforms that supply oil to Iran; and~~

~~Other closely related activities pertaining to the supply and transportation of oil to and from Iran.~~

On January 16, 2016, the U.S. lifted the nuclear-related “secondary sanctions” imposed against Iran. In connection with this event, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued General License H, which authorizes U.S.-owned or U.S.-controlled foreign entities to engage in certain transactions involving Iran that would otherwise be prohibited by section 560.215 of the Iranian Transactions and Sanctions Regulations.

The activities described above were conducted in full compliance with General License H. Our subsidiaries generated total gross revenue of approximately $11,478 (in actual dollars) and net profit of approximately $2,296 (in actual dollars) from these activities.

~~Our subsidiaries intend to continue acting as an insurance broker in connection with insurance coverages authorized by General License H.~~

In June 2014, we acquired a business in the U.K. that, beginning in 2011, had assisted its client, Bimeh Iran Insurance Company (UK) Limited (Bimeh), obtain certain insurance policies. In March 2014, the predecessor business placed a~~12-month~~ employers liability policy for Bimeh, with a premium of £371. In March 2015, after the acquisition, one of our U.K. subsidiaries assisted Bimeh with the renewal of the policy for a further 12 months, at the same premium of £371 plus a £50 administrative fee (generating total gross revenue for our U.K. subsidiary of approximately $117 and net profit of approximately $23). The policy was not renewed when it expired in March 2016, and Bimeh is no longer a client of our U.K. subsidiary.

~~Item 6.~~

~~Exhibits~~


~~Filed with this~~ 3.1.1		Restated Certificate of Incorporation of Arthur J. Gallagher & Co. (incorporated by reference to Exhibit 3.2 to our Form ~~10-Q~~8-K Current Report dated May 11, 2023, File No. 1-09761).

~~15.1~~ 3.2		~~Letter~~Amended and Restated By-Laws of ~~acknowledgement from Ernst~~Arthur J. Gallagher & ~~Young LLP concerning unaudited interim financial information.~~Co. (incorporated by reference to Exhibit 3.1 to our Form 8-K Current Report dated December 6, 2022, File No. 1-09761).

31.1		Rule 13a-14(a) Certification of Chief Executive Officer.

31.2		Rule 13a-14(a) Certification of Chief Financial Officer.

32.1		Section 1350 Certification of Chief Executive Officer.

32.2		Section 1350 Certification of Chief Financial Officer.

101.INS		Inline XBRL Instance Document. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema ~~Document.~~with embedded linkbases document.

~~101.CAL~~ 104		Cover Page Interactive Data File formatted in Inline XBRL ~~Taxonomy Extension Calculation Linkbase Document.~~

~~101.LAB~~		~~XBRL Taxonomy Extension Label Linkbase Document.~~

~~101.PRE~~		~~XBRL Taxonomy Extension Presentation Linkbase Document.~~

~~101.DEF~~		~~XBRL Taxonomy Extension Definition Linkbase Document.~~(included as Exhibit 101).

- 59 -

Signature

~~- 64 -~~

~~Signature~~

Pursuant to the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			Arthur J. Gallagher & Co.

~~Date: October 30, 2017~~		~~By:~~
Date: May 1, 2024	By:	/s/ Douglas K. Howell
				Douglas K. Howell Vice President and Chief Financial Officer (principal financial officer and duly authorized officer)

- 6560 -


Name and Effective Date of Acquisition	Common Shares Issued		Common Share Value		Cash Paid		Accrued Liability		Escrow Deposited		Recorded Earnout Payable		Total Recorded Purchase Price		Maximum Potential Earnout Payable
	(000s)
Construction Risk Solutions, LLC (CRS) January 1, 2017		—	$	—	$	27.9	$	—	$	3.1	$	4.4	$	35.4	$	10.0
Hill, Chesson & Woody (HCW) January 1, 2017		—		—		34.8		—		0.7		15.9		51.4		24.4
Presidio Group, Inc. (PG) January 1, 2017		—		—		41.8		—		4.8		7.0		53.6		15.0
Commercial Insurance Brokers (CIB) April 1, 2017		—		—		17.7		—		2.0		0.8		20.5		3.6
Williams - Mannny Insurance Group (WMI) May 1, 2017		170		9.8		28.2		—		2.0		5.4		45.4		11.5
GPL Assurance Inc. (GPL) August 1, 2017		—		—		37.8		—		4.2		4.3		46.3		8.0
Lutgert Insurance (LI) September 1, 2017		—		—		25.2		—		1.3		4.4		30.9		10.2
Twenty-three other acquisitions completed in 2017		245		12.3		86.7		—		7.3		27.2		133.5		64.2

		415	$	22.1	$	300.1	$	—	$	25.4	$	69.4	$	417.0	$	146.9


	September 30, 2017		December 31, 2016

Premium finance advances and loans	$	292.5	$	241.2
Accrued supplemental, direct bill and other receivables		172.4		177.2
Refined coal production related receivables		125.7		136.9
Prepaid expenses		89.0		78.4

Total other current assets	$	679.6	$	633.7


Estimated aggregate amortization expense for each of the next five years is as follows:
2017 (remaining three months)	$	65.4
2018		253.8
2019		239.5
2020		222.8
2021		198.7


Total	$	980.2


	September 30, 2017				December 31,
			Funding		2016
	Assets		Commitments		Assets
Chem-Mod LLC	$	4.0	$	—	$	4.0
Chem-Mod International LLC		2.0		—		2.0
Clean-coal investments:
Controlling interest in six limited liability companies that own fourteen 2009 Era Clean Coal Plants		11.5		—		14.3
Non-controlling interest in one limited liability company that owns one 2011 Era Clean Coal Plant		0.6		—		0.7
Controlling interest in seventeen limited liability companies that own nineteen 2011 Era Clean Coal Plants		62.2		—		69.0
Other investments		3.7		0.4		3.7


Total investments	$	84.0	$	0.4	$	93.7


	Commission			Compensation		Operating		Interest
	Revenue			Expense		Expense		Expense			Total
September 30, 2017
Cash flow hedges:
Interest rate contracts	$	—		$	—	$	—	$	(1.6	)	$	(1.6	)
Foreign exchange contracts		7.9			2.3		1.6		—			11.8

Total	$	7.9		$	2.3	$	1.6	$	(1.6	)	$	10.2


September 30, 2016
Cash flow hedges:
Interest rate contracts	$	—		$	—	$	—	$	(3.3	)	$	(3.3	)
Foreign exchange contracts		(17.3	)		0.7		0.5		—			(16.1	)

Total	$	(17.3	)	$	0.7	$	0.5	$	(3.3	)	$	(19.4	)


	Three-month period						Nine-month period
	ended September 30,						ended September 30,
	2017			2016			2017			2016
Brokerage
Total revenues	$	953.7		$	877.6		$	2,830.3		$	2,642.2

Earnings before income taxes	$	161.6		$	149.1		$	491.8		$	427.3

Identifiable assets at September 30, 2017 and 2016							$	10,275.9		$	8,972.7

Risk Management
Total revenues	$	200.2		$	176.7		$	571.5		$	532.5

Earnings before income taxes	$	27.8		$	21.5		$	73.6		$	67.9

Identifiable assets at September 30, 2017 and 2016							$	733.0		$	679.6

Corporate
Total revenues	$	430.6		$	428.0		$	1,158.8		$	1,035.1

Loss before income taxes	$	(92.7	)	$	(75.7	)	$	(269.4	)	$	(207.1	)

Identifiable assets at September 30, 2017 and 2016							$	1,801.5		$	1,548.0


(Dollars in millions, except per share data)	Nine Months 2017						Nine Months 2016						Change
	Reported			Adjusted			Reported			Adjusted			Reported			Adjusted
Brokerage Segment	GAAP			Non-GAAP			GAAP			Non-GAAP			GAAP			Non-GAAP
Revenues	$	2,830.3		$	2,827.2		$	2,642.2		$	2,609.2			7	%		8	%
Organic revenues				$	2,657.3					$	2,567.3						3.5	%
Net earnings	$	325.2					$	278.5						17	%
Net earnings margin		11.5	%					10.5	%					+95 bpts
Adjusted EBITDAC				$	791.1					$	715.1						11	%
Adjusted EBITDAC margin					28.0	%					27.4	%					+57 bpts
Diluted net earnings per share	$	1.75		$	1.93		$	1.54		$	1.75			14	%		10	%

Risk Management Segment
Revenues	$	571.5		$	571.5		$	532.5		$	533.3			7	%		7	%
Organic revenues				$	563.4					$	532.6						5.8	%
Net earnings	$	45.8					$	42.1						9	%
Net earnings margin		8.0	%					7.9	%					+10 bpts
Adjusted EBITDAC				$	99.1					$	91.7						8	%
Adjusted EBITDAC margin					17.3	%					17.2	%					+15 bpts
Diluted net earnings per share	$	0.25		$	0.25		$	0.23		$	0.24			9	%		4	%

Corporate Segment
Diluted net earnings (loss) per share	$	(0.03	)	$	0.06		$	0.02		$	0.08			-250	%		-25	%

Total Company
Diluted net earnings per share	$	1.97		$	2.24		$	1.79		$	2.07			10	%		8	%


	2017 Organic Revenue									2016 Organic Revenue
For the Nine-Month Periods Ended September 30,	2017			2016			Change			2016			2015			Change
Base Commissions and Fees
Commission and fees, as reported	$	2,576.0		$	2,398.3			7.4	%	$	2,398.3		$	2,254.4			6.4	%
Less commission and fee revenues from acquisitions		(124.4	)		—						(139.3	)		—
Less disposed of operations		—			(1.5	)					—			(1.9	)
Levelized foreign currency translation		—			(26.2	)					—			(51.3	)

Organic base commission and fees	$	2,451.6		$	2,370.6			3.4	%	$	2,259.0		$	2,201.2			2.6	%

Supplemental Commissions
Supplemental commissions, as reported	$	115.9		$	106.8			8.5	%	$	106.8		$	90.9			17.5	%
Less supplemental commissions from acquisitions		(1.4	)		—						(1.4	)		—
Less disposed of operations		—			(0.5	)					—			(0.2	)
Levelized foreign currency translation		—			(2.7	)					—			(3.5	)

Organic supplemental commissions	$	114.5		$	103.6			10.5	%	$	105.4		$	87.2			20.9	%

Contingent Commissions
Contingent commissions, as reported	$	96.4		$	96.7			-0.3	%	$	96.7		$	81.8			18.2	%
Less contingent commissions from acquisitions		(5.2	)		—						(7.6	)		—
Less disposed of operations		—			(2.9	)					—			(0.1	)
Levelized foreign currency translation		—			(0.7	)					—			(0.6	)

Organic contingent commissions	$	91.2		$	93.1			-2.0	%	$	89.1		$	81.1			9.9	%

Total reported commissions, fees, supplemental commissions and contingent commissions	$	2,788.3		$	2,601.8			7.2	%	$	2,601.8		$	2,427.1			7.2	%
Less commission and fee revenues from acquisitions		(131.0	)		—						(148.3	)		—
Less disposed of operations		—			(4.9	)					—			(2.2	)
Levelized foreign currency translation		—			(29.6	)					—			(55.4	)

Total organic commissions, fees, supplemental commissions and contingent commissions	$	2,657.3		$	2,567.3			3.5	%	$	2,453.5		$	2,369.5			3.6	%


	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		YTD
2017
Reported supplemental commissions	$	34.5	$	41.5	$	39.9			$	115.9
Reported contingent commissions		53.4		29.5		13.5				96.4

Reported supplemental and contingent commissions	$	87.9	$	71.0	$	53.4			$	212.3

2016
Reported supplemental commissions	$	32.9	$	38.6	$	35.3	$	40.2	$	147.0
Reported contingent commissions		55.2		25.1		16.4		10.5		107.2

Reported supplemental and contingent commissions	$	88.1	$	63.7	$	51.7	$	50.7	$	254.2

2015
Reported supplemental commissions	$	26.9	$	34.8	$	29.2	$	34.6	$	125.5
Reported contingent commissions		44.5		22.8		14.5		11.9		93.7

Reported supplemental and contingent commissions	$	71.4	$	57.6	$	43.7	$	46.5	$	219.2


Change in interest expense related to:	Three-month period ended September 30, 2017			Nine-month period ended September 30, 2017
Interest on borrowings from our Credit Agreement	$	(0.3	)	$	2.1
Interest on the $275.0 million note funded on June 2, 2016		—			5.1
Interest on the $50.0 million 2016 maturity of the Series B Note that was paid off on November 30, 2016		(0.7	)		(2.2	)
Interest on the $100.0 million note funded on December 1, 2016		0.9			2.6
Interest on the $250.0 million notes funded on June 27, 2017		2.6			2.7
Interest on the $250.0 million note funded on August 2 and 4, 2017		2.5			2.5
Amortization of the hedge gain related to the August 2017 fundings		(0.2	)		(0.2	)
Interest on the $300.0 million 2017 maturity of the Series B Note that was paid off on August 3, 2017		(3.3	)		(3.3	)
Capitalization of interest costs related to the purchase and development of our new headquarters building and other		1.4			2.1


Net change in interest expense	$	2.9		$	11.4


Three-Month Periods Ended September 30,	2017									2016
	Pretax (Loss)			Income Tax Benefit			Net Earnings (Loss) Attributable to Controlling Interests			Pretax (Loss)			Income Tax Benefit			Net Earnings (Loss) Attributable to Controlling Interests
Interest and banking costs	$	(31.9	)	$	12.8		$	(19.1	)	$	(29.3	)	$	11.7		$	(17.6	)
Clean energy related (1)		(38.8	)		77.1			38.3			(39.8	)		79.1			39.3
Acquisition costs		(2.3	)		0.9			(1.4	)		(0.9	)		0.1			(0.8	)
Corporate		(21.2	)		12.5			(8.7	)		(9.1	)		3.4			(5.7	)
Litigation settlement related expenses		—			—			—			(4.4	)		0.9			(3.5	)
Home office lease termination/move		(6.2	)		2.5			(3.7	)		—			—			—

Reported second quarter		(100.4	)		105.8			5.4			(83.5	)		95.2			11.7
Litigation settlement related expenses		—			—			—			4.4			(0.9	)		3.5
Home office lease termination/move		6.2			(2.5	)		3.7			—			—			—

Adjusted second quarter	$	(94.2	)	$	103.3		$	9.1		$	(79.1	)	$	94.3		$	15.2


Nine-Month Periods Ended September 30,
Interest and banking costs	$	(95.0	)	$	38.1		$	(56.9	)	$	(83.6	)	$	33.4		$	(50.2	)
Clean energy related (1)		(114.5	)		202.7			88.2			(98.1	)		183.9			85.8
Acquisition costs		(7.4	)		2.2			(5.2	)		(3.7	)		0.6			(3.1	)
Corporate		(49.1	)		33.8			(15.3	)		(27.7	)		9.6			(18.1	)
Litigation settlement related expenses		(11.1	)		2.3			(8.8	)		(14.6	)		3.0			(11.6	)
Home office lease termination/move		(13.2	)		5.3			(7.9	)		—			—			—

Reported second quarter		(290.3	)		284.4			(5.9	)		(227.7	)		230.5			2.8
Litigation settlement related expenses		11.1			(2.3	)		8.8			14.6			(3.0	)		11.6
Home office lease termination/move		13.2			(5.3	)		7.9			—			—			—

Adjusted second quarter	$	(266.0	)	$	276.8		$	10.8		$	(213.1	)	$	227.5		$	14.4


		Our Tax-Effected Book Value At September 30, 2017		Additional Required Tax-Effected Capital Investment		Low Range 2017 After-tax Earnings		High Range 2017 After-tax Earnings
Investments that own 2009 Era Plants
12	Under long-term production contracts	$	6.9	$	—	$	16.0	$	18.0
2	Not currently active in negotiations for long-term production contracts		—		Not Estimable		Not Estimable		Not Estimable

Investments that own 2011 Era Plants
19	Under long-term production contracts		37.5		—		91.0		93.0
1	In early stages of negotiations for long-term production contract		0.2		Not Estimable		Not Estimable		Not Estimable
Chem-Mod royalty income, net of noncontrolling interests			2.4		—		16.0		18.0


Period	Total Number of Shares Purchased (1)		Average Price Paid per Share (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3)		Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs (3)
July 1 through July 31, 2017		—	$	—		—		7,735,489
August 1 through August 31, 2017		3,183		58.60		—		7,735,489
September 1 through September 30, 2017		20,783		60.19		—		7,735,489

Total		23,966	$	60.00		—

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