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
| | | | | | | | | | | | | | | | | | | |
|
|
For the Years Ended December 31,
(In millions except per share figures) | | 2006 | (b)(c) | 2005 | (b)(c) | 2004 | (b)(c) | 2003 | (b)(c) | 2002 | (b)(c) | Compound
Growth
Rate
2001-2006 | |
|
|
Revenue: | | | | | | | | | | | | | | | | | | | |
Service Revenue | | $ | 10,350 | | $ | 9,902 | | $ | 9,877 | | $ | 9,156 | | $ | 7,885 | | 8 | % | |
Investment Income (Loss) | | | 197 | | | 180 | | | 149 | | | 97 | | | 109 | | 20 | % | |
|
|
Total Revenue | | | 10,547 | | | 10,082 | | | 10,026 | | | 9,253 | | | 7,994 | | 8 | % | |
|
|
Expenses: | | | | | | | | | | | | | | | | | | | |
Compensation and Benefits | | | 6,515 | | | 6,327 | | | 6,073 | | | 5,094 | | | 4,422 | | 10 | % | |
Other Operating Expenses | | | 2,877 | | | 3,135 | | | 2,853 | | | 2,226 | | | 1,909 | | 7 | % | |
Regulatory and Other Settlements | | | — | | | 30 | | | 618 | | | — | | | — | | | | |
|
|
Total Expenses | | | 9,392 | | | 9,492 | | | 9,544 | | | 7,320 | | | 6,331 | | 9 | % | |
|
|
Operating Income | | | 1,155 | (a) | | 590 | (a) | | 482 | (a) | | 1,933 | | | 1,663 | | — | | |
Interest Income | | | 60 | | | 44 | | | 20 | | | 23 | | | 17 | | | | |
Interest Expense | | | (303 | ) | | (332 | ) | | (219 | ) | | (185 | ) | | (160 | ) | | | |
|
|
Income Before Income Taxes and Minority Interest | | | 912 | | | 302 | | | 283 | | | 1,771 | | | 1,520 | | (1 | )% | |
Income Taxes | | | 272 | | | 95 | | | 100 | | | 555 | | | 518 | | | | |
Minority Interest, Net of Tax | | | 8 | | | 6 | | | 8 | | | 8 | | | 7 | | | | |
|
|
Income From Continuing Operations | | | 632 | | | 201 | | | 175 | | | 1,208 | | | 995 | | 1 | % | |
|
|
Discontinued Operations, Net of Tax | | | 358 | | | 203 | | | 1 | | | 332 | | | 370 | | (1 | )% | |
|
|
Net Income | | $ | 990 | | $ | 404 | | $ | 176 | | $ | 1,540 | | $ | 1,365 | | — | | |
|
|
Basic Income Per Share Information: | | | | | | | | | | | | | | | | | | | |
Income From Continuing Operations | | $ | 1.15 | | $ | 0.37 | | $ | 0.33 | | $ | 2.27 | | $ | 1.84 | | 1 | % | |
Income From Discontinued Operations | | $ | 0.65 | | $ | 0.38 | | $ | — | | $ | 0.62 | | $ | 0.68 | | (1 | )% | |
Net Income | | $ | 1.80 | | $ | 0.75 | | $ | 0.33 | | $ | 2.89 | | $ | 2.52 | | — | | |
Average Number of Shares Outstanding | | | 549 | | | 538 | | | 526 | | | 533 | | | 541 | | | | |
|
|
Diluted Income Per Share Information: | | | | | | | | | | | | | | | | | | | |
Income From Continuing Operations | | $ | 1.14 | | $ | 0.37 | | $ | 0.33 | | $ | 2.21 | | $ | 1.79 | | 2 | % | |
Income From Discontinued Operations | | $ | 0.62 | | $ | 0.37 | | $ | — | | $ | 0.60 | | $ | 0.66 | | (2 | )% | |
Net Income | | $ | 1.76 | | $ | 0.74 | | $ | 0.33 | | $ | 2.81 | | $ | 2.45 | | 1 | % | |
Average Number of Shares Outstanding | | | 557 | | | 543 | | | 535 | | | 548 | | | 557 | | | | |
|
|
| |
Dividends Paid Per Share | | $ | 0.68 | | $ | 0.68 | | $ | 1.30 | | $ | 1.18 | | $ | 1.09 | | (8 | )% | |
| |
Return on Average Stockholders’ Equity | | | 18 | % | | 8 | % | | 3 | % | | 29 | % | | 27 | % | | | |
| | | | | | | | | | | | | | | | | | | |
Year-end Financial Position: | | | | | | | | | | | | | | | | | | | |
Working capital | | $ | 1,058 | | $ | 1,390 | | $ | (258 | ) | $ | 920 | | $ | 1,105 | | | | |
Total assets | | $ | 18,137 | | $ | 17,892 | | $ | 18,498 | | $ | 15,053 | | $ | 13,855 | | | | |
Long-term debt | | $ | 3,860 | | $ | 5,044 | | $ | 4,691 | | $ | 2,910 | | $ | 2,891 | | | | |
Stockholders’ equity | | $ | 5,819 | | $ | 5,360 | | $ | 5,056 | | $ | 5,451 | | $ | 5,018 | | | | |
Total shares outstanding (net of treasury shares) | | | 552 | | | 546 | | | 527 | | | 527 | | | 538 | | | | |
Other Information: | | | | | | | | | | | | | | | | | | | |
Number of employees | | | 52,600 | | | 51,900 | | | 59,300 | | | 55,200 | | | 53,800 | | | | |
Stock price ranges– | | | | | | | | | | | | | | | | | | | |
U.S. exchanges – High | | $ | 32.73 | | $ | 34.25 | | $ | 49.69 | | $ | 54.97 | | $ | 57.30 | | | | |
– Low | | $ | 24.00 | | $ | 26.67 | | $ | 22.75 | | $ | 38.27 | | $ | 34.61 | | | | |
|
|
| |
(a) | Includes net restructuring costs of $87 million, $317 million and $322 million in 2006, 2005 and 2004, respectively. |
| |
(b) | Certain balances have been reclassified to conform with current presentation. See Note 1 to the Consolidated Financial Statements. |
| |
(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.
1
