EXHIBIT 99.1
AMENDED ITEM 6. SELECTED FINANCIAL DATA OF MMC’S ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2006.
Marsh & McLennan Companies, Inc. and Subsidiaries
FIVE-YEAR STATISTICAL SUMMARY OF OPERATIONS
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For the Years Ended December 31, |
| 2006 | (b)(c) | 2005 | (b)(c) | 2004 | (b)(c) | 2003 | (b)(c) | 2002 | (b)(c) | Compound |
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Revenue: |
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Service Revenue |
| $ | 10,350 |
| $ | 9,902 |
| $ | 9,877 |
| $ | 9,156 |
| $ | 7,885 |
| 8 | % |
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Investment Income (Loss) |
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| 197 |
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| 180 |
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| 149 |
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| 97 |
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| 109 |
| 20 | % |
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Total Revenue |
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| 10,547 |
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| 10,082 |
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| 10,026 |
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| 9,253 |
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| 7,994 |
| 8 | % |
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Expenses: |
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Compensation and Benefits |
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| 6,515 |
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| 6,327 |
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| 6,073 |
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| 5,094 |
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| 4,422 |
| 10 | % |
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Other Operating Expenses |
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| 2,877 |
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| 3,135 |
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| 2,853 |
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| 2,226 |
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| 1,909 |
| 7 | % |
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Regulatory and Other Settlements |
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| — |
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| 30 |
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| 618 |
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| — |
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| — |
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Total Expenses |
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| 9,392 |
| 9,492 |
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| 9,544 |
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| 7,320 |
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| 6,331 |
| 9 | % |
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Operating Income |
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| 1,155 | (a) |
| 590 | (a) |
| 482 | (a) |
| 1,933 |
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| 1,663 |
| — |
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Interest Income |
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| 60 |
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| 44 |
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| 20 |
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| 23 |
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| 17 |
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Interest Expense |
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| (303 | ) |
| (332 | ) |
| (219 | ) |
| (185 | ) |
| (160 | ) |
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Income Before Income Taxes and Minority Interest |
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| 912 |
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| 302 |
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| 283 |
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| 1,771 |
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| 1,520 |
| (1 | )% |
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Income Taxes |
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| 272 |
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| 95 |
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| 100 |
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| 555 |
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| 518 |
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Minority Interest, Net of Tax |
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| 8 |
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| 6 |
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| 8 |
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| 8 |
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| 7 |
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Income From Continuing Operations |
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| 632 |
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| 201 |
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| 175 |
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| 1,208 |
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| 995 |
| 1 | % |
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Discontinued Operations, Net of Tax |
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| 358 |
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| 203 |
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| 1 |
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| 332 |
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| 370 |
| (1 | )% |
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Net Income |
| $ | 990 |
| $ | 404 |
| $ | 176 |
| $ | 1,540 |
| $ | 1,365 |
| — |
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Basic Income Per Share Information: |
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Income From Continuing Operations |
| $ | 1.15 |
| $ | 0.37 |
| $ | 0.33 |
| $ | 2.27 |
| $ | 1.84 |
| 1 | % |
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Income From Discontinued Operations |
| $ | 0.65 |
| $ | 0.38 |
| $ | — |
| $ | 0.62 |
| $ | 0.68 |
| (1 | )% |
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Net Income |
| $ | 1.80 |
| $ | 0.75 |
| $ | 0.33 |
| $ | 2.89 |
| $ | 2.52 |
| — |
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Average Number of Shares Outstanding |
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| 549 |
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| 538 |
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| 526 |
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| 533 |
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| 541 |
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Diluted Income Per Share Information: |
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Income From Continuing Operations |
| $ | 1.14 |
| $ | 0.37 |
| $ | 0.33 |
| $ | 2.21 |
| $ | 1.79 |
| 2 | % |
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Income From Discontinued Operations |
| $ | 0.62 |
| $ | 0.37 |
| $ | — |
| $ | 0.60 |
| $ | 0.66 |
| (2 | )% |
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Net Income |
| $ | 1.76 |
| $ | 0.74 |
| $ | 0.33 |
| $ | 2.81 |
| $ | 2.45 |
| 1 | % |
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Average Number of Shares Outstanding |
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| 557 |
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| 543 |
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| 535 |
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| 548 |
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| 557 |
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Dividends Paid Per Share |
| $ | 0.68 |
| $ | 0.68 |
| $ | 1.30 |
| $ | 1.18 |
| $ | 1.09 |
| (8 | )% |
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Return on Average Stockholders’ Equity |
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| 18 | % |
| 8 | % |
| 3 | % |
| 29 | % |
| 27 | % |
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Year-end Financial Position: |
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Working capital |
| $ | 1,058 |
| $ | 1,390 |
| $ | (258 | ) | $ | 920 |
| $ | 1,105 |
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Total assets |
| $ | 18,137 |
| $ | 17,892 |
| $ | 18,498 |
| $ | 15,053 |
| $ | 13,855 |
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Long-term debt |
| $ | 3,860 |
| $ | 5,044 |
| $ | 4,691 |
| $ | 2,910 |
| $ | 2,891 |
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Stockholders’ equity |
| $ | 5,819 |
| $ | 5,360 |
| $ | 5,056 |
| $ | 5,451 |
| $ | 5,018 |
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Total shares outstanding (net of treasury shares) |
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| 552 |
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| 546 |
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| 527 |
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| 527 |
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| 538 |
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Other Information: |
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Number of employees |
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| 52,600 |
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| 51,900 |
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| 59,300 |
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| 55,200 |
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| 53,800 |
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Stock price ranges– |
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U.S. exchanges – High |
| $ | 32.73 |
| $ | 34.25 |
| $ | 49.69 |
| $ | 54.97 |
| $ | 57.30 |
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– Low |
| $ | 24.00 |
| $ | 26.67 |
| $ | 22.75 |
| $ | 38.27 |
| $ | 34.61 |
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(a) | Includes net restructuring costs of $87 million, $317 million and $322 million in 2006, 2005 and 2004, respectively. |
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(b) | Certain balances have been reclassified to conform with current presentation. See Note 1 to the Consolidated Financial Statements. |
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(c) | Amended to reflect Putnam as a discontinued operation. |
See Management’s Discussion and Analysis of Financial Condition and Results of Operations, appearing under Amended Item 7 of this report, for discussion of significant items affecting our results of operations in 2006 and 2005.
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