Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 22, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity Registrant Name | Marsh & McLennan Companies, Inc. | |
Entity Address, Address Line One | 1166 Avenue of the Americas | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | 212 | |
Local Phone Number | 345-5000 | |
Entity File Number | 1-5998 | |
Entity Address, State or Province | DE | |
Entity Tax Identification Number | 36-2668272 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Trading Symbol | MMC | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 508,531,926 | |
Entity Central Index Key | 0000062709 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
New York Stock Exchange | ||
Entity Information [Line Items] | ||
Security Exchange Name | NYSE | |
Chicago Stock Exchange | ||
Entity Information [Line Items] | ||
Security Exchange Name | CHX |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 5,083 | $ 4,651 |
Expense: | ||
Compensation and benefits | 2,807 | 2,555 |
Other operating expenses | 918 | 1,026 |
Operating expenses | 3,725 | 3,581 |
Operating income | 1,358 | 1,070 |
Other net benefit credits | 71 | 64 |
Interest income | 0 | 2 |
Interest expense | (118) | (127) |
Investment income (loss) | 11 | (2) |
Income before income taxes | 1,322 | 1,007 |
Income tax expense | 324 | 240 |
Net income before non-controlling interests | 998 | 767 |
Less: Net income attributable to non-controlling interests | 15 | 13 |
Net income attributable to the Company | $ 983 | $ 754 |
Net income per share attributable to the Company: | ||
Basic (usd per share) | $ 1.93 | $ 1.49 |
Diluted (usd per share) | $ 1.91 | $ 1.48 |
Average number of shares outstanding: | ||
Basic (in shares) | 509 | 505 |
Diluted (in shares) | 514 | 510 |
Shares outstanding (in shares) | 509 | 506 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income before non-controlling interests | $ 998 | $ 767 |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation adjustments | (91) | (941) |
Gain related to pension/post-retirement plans | 6 | 175 |
Other comprehensive loss, before tax | (85) | (766) |
Income tax expense on other comprehensive income | 2 | 26 |
Other comprehensive loss, net of tax | (87) | (792) |
Comprehensive income (loss) | 911 | (25) |
Less: comprehensive income attributable to non-controlling interest | 15 | 13 |
Comprehensive income (loss) attributable to the Company | $ 896 | $ (38) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,120 | $ 2,089 |
Receivables | ||
Commissions and fees | 5,032 | 4,679 |
Advanced premiums and claims | 119 | 112 |
Other | 592 | 677 |
Gross receivables | 5,743 | 5,468 |
Less-allowance for credit losses | (146) | (142) |
Net receivables | 5,597 | 5,326 |
Other current assets | 832 | 740 |
Total current assets | 7,549 | 8,155 |
Goodwill | 15,458 | 15,517 |
Other intangible assets | 2,603 | 2,699 |
Fixed assets (net of accumulated depreciation and amortization of $2,197 at March 31, 2021 and $2,159 at December 31, 2020) | 830 | 856 |
Pension related assets | 1,823 | 1,768 |
Right of use assets | 1,824 | 1,894 |
Deferred tax assets | 704 | 702 |
Other assets | 1,482 | 1,458 |
Total assets | 32,273 | 33,049 |
Current liabilities: | ||
Short-term debt | 1,015 | 517 |
Accounts payable and accrued liabilities | 2,940 | 3,050 |
Accrued compensation and employee benefits | 1,220 | 2,400 |
Current lease liabilities | 342 | 342 |
Accrued income taxes | 368 | 247 |
Dividends payable | 238 | 0 |
Total current liabilities | 6,123 | 6,556 |
Fiduciary liabilities | 8,782 | 8,585 |
Less – cash and investments held in a fiduciary capacity | (8,782) | (8,585) |
Net fiduciary assets | 0 | 0 |
Long-term debt | 10,242 | 10,796 |
Pension, post-retirement and post-employment benefits | 2,594 | 2,662 |
Long-term lease liabilities | 1,850 | 1,924 |
Liabilities for errors and omissions | 354 | 366 |
Other liabilities | 1,514 | 1,485 |
Commitments and contingencies | 0 | 0 |
Equity: | ||
Preferred stock, $1 par value, authorized 6,000,000 shares, none issued | 0 | 0 |
Common stock, $1 par value, authorized 1,600,000,000 shares, issued 560,641,640 shares at March 31, 2021 and December 31, 2020 | 561 | 561 |
Additional paid-in capital | 851 | 943 |
Retained earnings | 16,780 | 16,272 |
Accumulated other comprehensive loss | (5,197) | (5,110) |
Non-controlling interests | 162 | 156 |
Stockholders' equity before treasury stock | 13,157 | 12,822 |
Less – treasury shares, at cost, 51,871,847 shares at March 31, 2021 and 52,914,550 shares at December 31, 2020 | (3,561) | (3,562) |
Total equity | 9,596 | 9,260 |
Total liabilities and stockholders' equity | $ 32,273 | $ 33,049 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fixed assets, accumulated depreciation and amortization | $ 2,197 | $ 2,159 |
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 1,600,000,000 | 1,600,000,000 |
Common stock, shares issued | 560,641,640 | 560,641,640 |
Treasury shares, shares | 51,871,847 | 52,914,550 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating cash flows: | ||
Net income before non-controlling interests | $ 998 | $ 767 |
Adjustments to reconcile net income used for operations: | ||
Depreciation and amortization of fixed assets and capitalized software | 97 | 97 |
Amortization of intangible assets | 100 | 86 |
Non cash lease expense | 79 | 80 |
Adjustments and payments related to contingent consideration liability | (1) | (10) |
Provision for deferred income taxes | 14 | 9 |
Net (gain) loss on investments | (11) | 2 |
Net loss (gain) on disposition of assets | 3 | (3) |
Share-based compensation expense | 78 | 72 |
Changes in assets and liabilities: | ||
Net receivables | (275) | (313) |
Other current assets | (91) | (34) |
Other assets | (54) | 57 |
Accounts payable and accrued liabilities | (73) | (140) |
Accrued compensation and employee benefits | (1,180) | (1,178) |
Accrued income taxes | 121 | 91 |
Contributions to pension and other benefit plans in excess of current year credit | (102) | (85) |
Other liabilities | 26 | (38) |
Operating lease liabilities | (82) | (86) |
Effect of exchange rate changes | (55) | (12) |
Net cash used for operations | (408) | (638) |
Financing cash flows: | ||
Purchase of treasury shares | (112) | 0 |
Net increase in commercial paper | 0 | 193 |
Borrowings from term-loan and credit facilities | 0 | 2,000 |
Repayments of debt | (4) | (503) |
Purchase of non-controlling interests | 0 | (3) |
Shares withheld for taxes on vested units – treasury shares | (93) | (112) |
Issuance of common stock from treasury shares | 35 | 44 |
Payments of deferred and contingent consideration for acquisitions | (32) | (29) |
Distributions of non-controlling interests | (8) | (18) |
Dividends paid | (237) | (232) |
Net cash (used for) provided by financing activities | (451) | 1,340 |
Investing cash flows: | ||
Capital expenditures | (69) | (118) |
Net sales of long-term investments | 4 | 57 |
Dispositions | 0 | 7 |
Acquisitions | 0 | (200) |
Other, net | (2) | 9 |
Net cash used for investing activities | (67) | (245) |
Effect of exchange rate changes on cash and cash equivalents | (43) | (132) |
(Decrease) increase in cash and cash equivalents | (969) | 325 |
Cash and cash equivalents at beginning of period | 2,089 | 1,155 |
Cash and cash equivalents at end of period | $ 1,120 | $ 1,480 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | TREASURY SHARES | NON-CONTROLLING INTERESTS |
Balance, beginning of period at Dec. 31, 2019 | $ 561 | $ 862 | $ 15,199 | $ (5,055) | $ (3,774) | $ 150 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Change in accrued stock compensation costs | (129) | ||||||
Issuance of shares under stock compensation plans and employee stock purchase plans | 14 | 119 | |||||
Other | (1) | ||||||
Net income attributable to the Company | $ 767 | 754 | 13 | ||||
Dividend equivalents declared | (4) | ||||||
Dividends declared | (459) | ||||||
Other comprehensive loss, net of tax | (792) | (792) | |||||
Purchase of treasury shares | 0 | ||||||
Net non-controlling interests acquired (disposed) | (3) | ||||||
Distributions and other changes | (4) | ||||||
Balance, end of period at Mar. 31, 2020 | $ 7,451 | 561 | 746 | 15,490 | (5,847) | (3,655) | 156 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared per share (in dollars per share) | $ 0.91 | ||||||
Balance, beginning of period at Dec. 31, 2020 | $ 9,260 | 561 | 943 | 16,272 | (5,110) | (3,562) | 156 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Change in accrued stock compensation costs | (133) | ||||||
Issuance of shares under stock compensation plans and employee stock purchase plans | 41 | 113 | |||||
Other | 0 | ||||||
Net income attributable to the Company | 998 | 983 | 15 | ||||
Dividend equivalents declared | (3) | ||||||
Dividends declared | (472) | ||||||
Other comprehensive loss, net of tax | (87) | (87) | |||||
Purchase of treasury shares | (112) | ||||||
Net non-controlling interests acquired (disposed) | 0 | ||||||
Distributions and other changes | (9) | ||||||
Balance, end of period at Mar. 31, 2021 | $ 9,596 | $ 561 | $ 851 | $ 16,780 | $ (5,197) | $ (3,561) | $ 162 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared per share (in dollars per share) | $ 0.93 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Marsh & McLennan Companies, Inc. (the "Company" or "Marsh McLennan"), a global professional services firm, is organized based on the different services that it offers. Under this structure, the Company’s two business segments are Risk and Insurance Services and Consulting. The Risk and Insurance Services segment provides risk management solutions, services, advice and insurance broking, reinsurance broking and insurance program management services for businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Company conducts business in this segment through Marsh and Guy Carpenter. Marsh advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions. Guy Carpenter develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities. The Company conducts business in its Consulting segment through Mercer and Oliver Wyman Group. Mercer provides consulting expertise, advice, services and solutions in the areas of health, wealth and career consulting services and products. Oliver Wyman Group provides specialized management and economic and brand consulting services. Business Update Related To COVID-19 The COVID-19 pandemic has now surpassed one year in duration and it continues to impact virtually every geography in which the Company operates. The safety and well-being of our colleagues remains our first priority, while continuing to serve the needs of our clients. Approximately 70% of the Company’s offices are open, however, the vast majority of colleagues continue to work in a remote environment which is expected to continue through much of 2021. The Company continues to plan the multiple aspects of a return to the office model, considering health, colleague privacy and potential government restrictions. The Company expects to continue to service clients effectively in the current remote environment and as colleagues gradually return to the office. |
Principles of Consolidation and
Principles of Consolidation and Other Matters | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Other Matters | Principles of Consolidation and Other Matters The Company prepared the consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission. For interim filings, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. The Company believes that the information and disclosures presented are adequate to make such information and disclosures not misleading. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the "2020 Form 10-K"). The financial information contained herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the Company’s consolidated financial statements as of and for the three month periods ended March 31, 2021 and 2020. Estimates: The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. On an ongoing basis, the Company evaluates its estimates, judgments and methodologies. The estimates are based on historical experience and on various other assumptions that the Company believes are reasonable. Such matters include: • the allowance for current expected credit losses on receivables, • estimates of revenue, • impairment assessments and charges, • recoverability of long-lived assets, • liabilities for errors and omissions, • deferred tax assets, uncertain tax positions and income tax expense, • share-based and incentive compensation expense, • useful lives assigned to long-lived assets, and depreciation and amortization, • fair value estimates of contingent consideration receivable or payable related to acquisitions or dispositions The Company believes these estimates are reasonable based on information currently available at the time they are made. The Company also considered any COVID-19 potential impacts to its customer base in various industries and geographies and has concluded through March 31, 2021, that COVID-19 did not have a material adverse impact on the Company's financial position or estimates. The ultimate extent to which COVID-19 will directly or indirectly impact the Company’s businesses, results of operations and financial condition will depend on numerous evolving factors and future developments that it is not able to predict. Actual results may differ from these estimates . Cash and Cash Equivalents Cash and cash equivalents primarily consist of certificates of deposit and time deposits, with original maturities of three months or less, and money market funds. The estimated fair value of the Company's cash and cash equivalents approximates their carrying value. The Company is required to maintain operating funds primarily related to regulatory requirements outside of the United States or as collateral under captive insurance arrangemen ts. At March 31, 2021, the Company maintained $272 million compared to $270 million at December 31, 2020 related to these regulatory requirements. Allowance for Credit Losses on Accounts Receivable The Company’s policy for providing an allowance for credit losses on its accounts receivable is based on a combination of factors, including historical write-offs, aging of balances, and other qualitative and quantitative analyses. The charge related to expected credit losses was immaterial to the consolidated statement of income for the three months ended March 31, 2021. Investments The caption "Investment income (loss)" in the consolidated statements of income comprises realized and unrealized gains and losses from investments recognized in earnings. It includes, when applicable, other than temporary declines in the value of securities, mark-to-market increases or decreases in equity investments with readily determinable fair values and equity method gains or losses on the Company's investments in private equity funds. The Company holds investments in certain private equity funds that are accounted for in accordance with the equity method of accounting using a consistently applied three-month lag period adjusted for any known significant changes from the lag period to the reporting date of the Company. The underlying private equity funds follow investment company accounting, where investments within the fund are carried at fair value. Investment gains or losses for the Company's proportionate share of the change in fair value of the funds are recorded in earnings. Investments accounted for using the equity method of accounting are included in "other assets" in the consolidated balance sheets. The Company recorded net investment incom e of $11 million for th e three months ended March 31, 2021 compared to a net investment loss of $2 million for the same period last year. The increase is primarily due to gains from its investments in private equity funds. Income Taxes The Company's effective tax rate in the first quarter of 2021 was 24.5% compared with 23.8% in the first quarter of 2020. The tax rates in both periods reflect the impact of discrete tax items such as excess tax benefits related to share-based compensation, enacted tax legislation, changes in uncertain tax positions, deferred tax adjustments and nontaxable adjustments to contingent acquisition consideration. The excess tax benefit related to share-based payments is the most significant discrete item, reducing the effective tax rate by 1.1% and 2.6% in the first quarters of 2021 and 2020, respectively. The Company's tax rate reflects its income, statutory tax rates and tax planning in the various jurisdictions in which it operates. Significant judgment is required in determining the annual effective tax rate and in evaluating uncertain tax positions. Losses in one jurisdiction, generally, cannot offset earnings in another, and within certain jurisdictions profits and losses may not offset between entities. Consequently, losses in certain jurisdictions may require valuation allowances affecting the effective tax rate, depending on estimates of the realizability of associated deferred tax assets. The tax rate is also sensitive to changes in unrecognized tax benefits, including the impact of settled tax audits and expired statutes of limitation. Changes in tax laws or tax rulings may have a significant impact on our effective tax rate. The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in tax returns. The Company's gross unrecognized tax benefits was $96 million at March 31, 2021 and $98 million at December 31, 2020. It is reasonably possible that the total amount of unrecognized tax benefits will decrease between zero and approximately $35 million within the next twelve months due to settlements of audits and expirations of statutes of limitation. Integration and Restructuring Charges Severance and related costs are recognized based on amounts due under established severance plans or estimates of one-time benefits that will be provided. Typically, severance benefits are recognized when the impacted colleagues are notified of their expected termination and such termination is expected to occur within the legally required notification period. These costs are included in compensation and benefits in the consolidated statements of income. Costs for real estate consolidation are recognized based on the type of cost, and the expected future use of the facility. For locations where the Company does not expect to sub-lease the property, the amortization of any right-of-use asset is accelerated from the decision date to the cease use date. For locations where the Company expects to sub-lease the properties subsequent to its vacating the property, the right-of-use asset is reviewed for potential impairment at the earlier of the cease use date or the date a sub-lease is signed. To determine the amount of impairment, the fair value of the right-of-use asset is determined based on the present value of the estimated net cash flows related to the property. Contractual costs outside of the right-of-use asset are recognized based on the net present value of expected future cash outflows for which the Company will not receive any benefit. Such amounts are based on estimates of future sub-lease income to be received and future contractual costs to be incurred. These costs are included in other operating expenses in the consolidated statements of income. Other costs related to integration and restructuring, such as moving, legal or consulting costs are recognized as incurred. These costs are included in other operating expenses in the consolidated statements of income. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The core principle of the revenue recognition guidance is that an entity should recognize revenue to depict the transfer of 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. To achieve that principle, the entity applies the following steps: identify the contract(s) with the customer, identify the performance obligations in the contract(s), determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. A performance obligation is satisfied either at a “point in time” or “over time” depending on the nature of the product or service provided, and the specific terms of the contract with customers. The Company's revenue recognition guidance is provided in more detail in Note 2 of the consolidated financial statements and the notes thereto included in 2020 Form 10-K for the year ended December 31, 2020. The following schedule disaggregates components of the Company's revenue: Three Months Ended (In millions) 2021 2020 Marsh: EMEA $ 837 $ 754 Asia Pacific 274 238 Latin America 90 91 Total International 1,201 1,083 U.S./Canada 1,124 978 Total Marsh 2,325 2,061 Guy Carpenter 895 827 Subtotal 3,220 2,888 Fiduciary interest income 5 23 Total Risk and Insurance Services $ 3,225 $ 2,911 Mercer: Wealth $ 623 $ 592 Health 487 486 Career 178 173 Total Mercer 1,288 1,251 Oliver Wyman 585 511 Total Consulting $ 1,873 $ 1,762 The Company recognizes commission revenue from arrangements for a significant portion of its brokerage arrangements at a point in time on the effective date of the underlying policy. Commission revenue is estimated using historical information about the risks to be covered over the policy period, some of which are dependent on variable factors such as number of employees covered, covered payroll, airline passenger miles flown, shipped tonnage of marine cargo and others. The following schedule provides contract assets and contract liabilities information from contracts with customers. (In millions) March 31, 2021 December 31, 2020 Contract Assets $ 304 $ 236 Contract Liabilities $ 737 $ 676 The Company records accounts receivable when the right to consideration is unconditional, subject only to the passage of time. Contract assets primarily relate to quota share reinsurance brokerage and contingent insurer revenue. The Company does not have the right to bill and collect revenue for quota share brokerage until the underlying policies written by the ceding insurer attach to the treaty. Contract assets are included in other current assets in the Company's consolidated balance sheet. Contract liabilities primarily relate to the advance consideration received from customers. Contract liabilities are included in current liabilities in the Company's consolidated balance sheet. Revenue recognized in the first three months of 2021 and 2020 that was included in the contract liability balance at the beginning of each of those years was $238 million and $289 million, respectively. The amount of revenue recognized in the first three months of 2021 and 2020 from performance obligations satisfied in previous periods, mainly due to variable consideration from contracts with insurers, quota share business and consulting contracts previously considered constrained was $34 million and $29 million, respectively. The Company applies the practical expedient and does not disclose the value of unsatisfied performance obligations for (1) contracts with original contract terms of one year or less and (2) contracts where the Company has the right to invoice for services performed. The revenue expected to be recognized in future periods during the non-cancellable term of existing contracts greater than one year that is related to performance obligations that are unsatisfied or partially satisfied at the end of the reporting period is approximately $40 million for Marsh, $169 million for Mercer and $2 million for Oliver Wyman. The Company expects revenue in 2022, 2023, 2024, 2025 and |
Fiduciary Assets and Liabilitie
Fiduciary Assets and Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Fiduciary Assets And Liabilities [Abstract] | |
Fiduciary Assets and Liabilities | Fiduciary Assets and Liabilities In its capacity as an insurance broker or agent, the Company collects premiums from insureds and, after deducting its commissions, remits the premiums to the respective insurance underwriters. The Company also collects claims or refunds from underwriters on behalf of insureds. Unremitted insurance premiums and claims proceeds are held by the Company in a fiduciary capacity. Risk & Insurance Services revenue includes interest on fiduciary funds ("fiduciary interest incom e") of $5 million and $23 million for t he three month periods ended March 31, 2021 and March 31, 2020, respectively. The decrease in 2021 compared to 2020 reflects the impact of lower interest rates partially offset by a higher level of average invested funds. Since fiduciary assets are not available for corporate use, they are shown in the consolidated balance sheets as an offset to fiduciary liabilities. Net uncollected premiums and claims and the related payables amounted to $12.5 billion at March 31, 2021 and $11.2 billion at December 31, 2020. The Company is not a principal to the contracts under which the right to receive premiums or the right to receive reimbursement of insured losses arises. Accordingly, net uncollected premiums and claims and the related payables are not assets and liabilities of the Company and are not included in the accompanying consolidated balance sheets. In certain instances, the Company advances premiums, refunds or claims to insurance underwriters or insureds prior to collection. These advances are made from corporate funds and are reflected in the accompanying consolidated balance sheets as receivables. |
Per Share Data
Per Share Data | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Per Share Data | Per Share Data Basic net income per share attributable to the Company is calculated by dividing the after-tax income attributable to the Company by the weighted average number of outstanding shares of the Company’s common stock. Diluted net income per share attributable to the Company is calculated by dividing the after-tax income attributable to the Company by the weighted average number of outstanding shares of the Company’s common stock, which have been adjusted for the dilutive effect of potentially issuable common shares. Basic and Diluted EPS Calculation Three Months Ended (In millions, except per share amounts) 2021 2020 Net income before non-controlling interests $ 998 $ 767 Less: Net income attributable to non-controlling interests 15 13 Net income attributable to the Company $ 983 $ 754 Basic weighted average common shares outstanding 509 505 Dilutive effect of potentially issuable common shares 5 5 Diluted weighted average common shares outstanding 514 510 Average stock price used to calculate common stock equivalents $ 114.96 $ 107.10 |
Supplemental Disclosures to the
Supplemental Disclosures to the Consolidated Statements of Cash Flows | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures to the Consolidated Statements of Cash Flows | Supplemental Disclosures to the Consolidated Statements of Cash Flows The following schedule provides additional information concerning acquisitions, interest and income taxes paid for the three-month periods ended March 31, 2021 and 2020. (In millions) 2021 2020 Assets acquired, excluding cash $ — $ 249 Liabilities assumed — (5) Contingent/deferred purchase consideration — (44) Net cash outflow for current year acquisitions $ — $ 200 (In millions) 2021 2020 Interest paid $ 191 $ 199 Income taxes paid, net of refunds $ 122 $ 136 The classification of contingent consideration in the statement of cash flows is determined by whether the payment was part of the initial liability established on the acquisition date (financing) or an adjustment to the acquisition date liability (operating). The following amounts are included in the consolidated statements of cash flows as a financing activity. The Company paid deferred and contingent consideration of $37 million for the three months ended March 31, 2021. This consisted of deferred purchase consideration related to prior years' acquisitions of $27 million and contingent purchase consideration of $10 million. Financing cash flows also reflect the receipt of contingent consideration of $5 million related to prior year dispositions. For the three months ended March 31, 2020, the Company paid deferred and contingent consideration of $29 million, consisting of deferred purchase consideration related to prior years' acquisitions of $25 million and contingent consideration of $4 million. The following amounts are included in the operating section of the consolidated statements of cash flows. For the three months ended March 31, 2021, the Company paid contingent consideration payments of $1 million. For the three months ended March 31, 2020, the Company recorded a net credit for adjustments to contingent consideration liabilities of $1 million and made contingent consideration payments of $9 million. The Company had non-cash issuances of common stock under its share-based payment pla n of $212 million and $201 million for the three months ended March 31, 2021 and 2020, respectively. The Company recorded stock-based compensation expense for equity awards related to restricted stock units, performance stock units and stock options o f $78 million an d $72 million for the three-months ended March 31, 2021 and 2020, respectively. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The changes, net of tax, in the balances of each component of Accumulated Other Comprehensive Income ("AOCI") for the three-month periods ended March 31, 2021 and 2020, including amounts reclassified out of AOCI, are as follows: (In millions) Pension/Post-Retirement Plans Gains (Losses) Foreign Currency Translation Gains (Losses) Total Gains (Losses) Balance as of December 31, 2020 $ (4,126) $ (984) $ (5,110) Other comprehensive loss before reclassifications (36) (91) (127) Amounts reclassified from accumulated other comprehensive income 40 — 40 Net current period other comprehensive income (loss) 4 (91) (87) Balance as of March 31, 2021 $ (4,122) $ (1,075) $ (5,197) (In millions) Pension/Post-Retirement Plans Gains (Losses) Foreign Currency Translation Gains (Losses) Total Gains (Losses) Balance as of December 31, 2019 $ (3,512) $ (1,543) $ (5,055) Other comprehensive income (loss) before reclassifications 109 (930) (821) Amounts reclassified from accumulated other comprehensive income 29 — 29 Net current period other comprehensive income (loss) 138 (930) (792) Balance as of March 31, 2020 $ (3,374) $ (2,473) $ (5,847) The components of other comprehensive income (loss) for the three-month periods ended March 31, 2021 and 2020 are as follows: Three Months Ended March 31, 2021 2020 (In millions) Pre-Tax Tax (Credit) Net of Tax Pre-Tax Tax (Credit) Net of Tax Foreign currency translation adjustments $ (91) $ — $ (91) $ (941) $ (11) $ (930) Pension/post-retirement plans: Amortization of (gains) losses included in net periodic pension cost: Net actuarial losses (a) 52 12 40 40 11 29 Subtotal 52 12 40 40 11 29 Foreign currency translation adjustments (37) (8) (29) 135 26 109 Other adjustments (7) (2) (5) — — — Effect of remeasurement (2) — (2) — — — Pension/post-retirement plans gains 6 2 4 175 37 138 Other comprehensive (loss) income $ (85) $ 2 $ (87) $ (766) $ 26 $ (792) (a) Components of net periodic pension cost are included in other net benefit credits in the consolidated statements of income. Income tax expense on net actuarial losses are included in income tax expense. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and DispositionsThe Company’s acquisitions have been accounted for as business combinations. Net assets and results of operations are included in the Company’s consolidated financial statements commencing at the respective purchase closing dates. In connection with acquisitions, the Company records the estimated values of the net tangible assets and the identifiable intangible assets purchased, which typically consist of customer relationships, developed technology, trademarks and non-compete agreements. The valuation of purchased intangible assets involves significant estimates and assumptions. The Company estimates the fair value of purchased intangible assets, primarily using the income approach, by determining the present value of future cash flows over the remaining economic life of the respective assets. The significant estimates and assumptions used in this approach include the determination of the discount rate, economic life, future revenue growth rates, expected account attrition rates and earnings margins. Refinement and completion of final valuation of net assets acquired could affect the carrying value of tangible assets, goodwill and identifiable intangible assets. The Company had no acquisitions during the first three months of 2021. On April 1, 2021, MMA completed the acquisitions of PayneWest Insurance, Inc., a Montana-based full-service broker providing business insurance, surety, employee benefits and personal insurance services to companies and individuals, and The Pryor Group, LLC, a Texas-based full-service broker providing business insurance with a specialty in quick service restaurants and the personal lines of franchise owners. The Company p aid $27 million o f deferred purchase consideration and $11 million of contingent consideration related to acquisitions made in prior years. Dispositions There were no dispositions during the first three months of 2021. Prior-Year Acquisitions The Risk and Insurance Services segment complet ed seven acqui sitions during 2020. • January – Marsh & McLennan Agency ("MMA") acquired Momentous Insurance Brokerage Inc., a California-based full-service risk management and employee benefits firm specializing in high net worth private client services and insurance solutions for the entertainment industry, and Ironwood Insurance Services, LLC, an Atlanta-based broker that provides commercial property/casualty insurance, employee benefits, and private client solutions to mid-size businesses and individuals across the U.S. • April – MMA acquired Assurance Holdings, Inc., an Illinois-based full service brokerage providing business insurance, employee benefits, private client insurance, and retirement services to businesses and individuals across the U.S. • June – MMA acquired Nico Insurance Services, Inc., a California-based agency providing employee benefits solutions to groups and individuals. • December – MMA acquired Heritage Insurance Services, Inc., a Kentucky-based full service broker that provides commercial property and casualty and personal lines primarily in the trucking and transportation industry, Inspro Insurance, Inc., a Nebraska-based full service broker that provides commercial property and casualty insurance, personal lines and employee benefits services, and Compass Financial Partners, LLC, a North Carolina-based retirement consulting and investment advisory firm. Total purchase consideration for acquisitions made during the three months ended March 31, 2020 was approximately $245 million, which consisted of cash paid of $201 million and deferred purchase and estimated contingent consideration of $44 million. Contingent consideration arrangements are based primarily on earnings before interest, tax, depreciation and amortization ("EBITDA") or revenue targets over a period of two The consolidated statements of income include the results of operations of acquired companies since their respective acquisition dates. The consolidated statements of income for the three-month period ended March 31, 2020 included approximately $15 million of revenue and operating income of $4 million related to acquisitions made in 2020. Prior year dispositions In 2020, the Company sold certain businesses primarily in the U.S., U.K. and Canada for cash proceeds of approximately $98 million. Pro-Forma Information The following unaudited pro-forma financial data gives effect to the acquisitions made by the Company during 2020. In accordance with accounting guidance related to pro-forma disclosures, the information presented for acquisitions made in 2020 is as if they occurred on January 1, 2019. The unaudited pro-forma information adjusts for the effects of amortization of acquired intangibles. The unaudited pro-forma financial data is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved if such acquisitions had occurred on the dates indicated, nor is it necessarily indicative of future consolidated results. Three Months Ended (In millions, except per share figures) 2021 2020 Revenue $ 5,083 $ 4,705 Net income attributable to the Company $ 983 $ 755 Basic net income per share attributable to the Company $ 1.93 $ 1.50 Diluted net income per share attributable to the Company $ 1.91 $ 1.48 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles The Company is required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate impairment may have occurred. The Company performs the annual impairment assessment for each of its reporting units during the third quarter of each year. In accordance with applicable accounting guidance, a company can assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. Alternatively, the Company may elect to proceed directly to the quantitative goodwill impairment test. In 2020, the Company elected to perform a qualitative impairment assessment. As part of its assessment, the Company considered numerous factors, including: • that the fair value of each reporting unit exceeds its carrying value by a substantial margin based on its most recent quantitative assessment in 2019; • whether significant acquisitions or dispositions occurred which might alter the fair value of its reporting units; • macroeconomic conditions and their potential impact on reporting unit fair values; • actual performance compared with budget and prior projections used in its estimation of reporting unit fair values; • industry and market conditions; and • the year-over-year change in the Company’s share price. The Company completed its qualitative assessment in the third quarter of 2020 and concluded that goodwill was not impaired. Othe r intangible assets that are not deemed to have an indefinite life are amortized over their estimated lives and assessed for impairment upon the occurrence of certain triggering events in accordance with applicable accounting literature. Based on its assessment, the Company concluded that other intangible assets were not impaired. The Company does not have any indefinite lived intangible assets. Changes in the carrying amount of goodwill are as follows: March 31, (In millions) 2021 2020 Balance as of January 1, $ 15,517 $ 14,671 Goodwill acquired — 142 Other adjustments (a) (59) (401) Balance at March 31, $ 15,458 $ 14,412 (a) Primarily reflects the impact of foreign exchange. The goodwill arising from the acquisitions in 2020 consists largely of the synergies and economies of scale expected from combining the operations of the Company and the acquired entities and the trained and assembled workforce acquired. Goodwill allocable to the Company’s reportable segments at March 31, 2021 is as follows: Risk and Insurance Services, $11.7 billion and Consulting, $3.8 billion. The gross cost and accumulated amortization of identified intangible assets at March 31, 2021 and December 31, 2020 are as follows: March 31, 2021 December 31, 2020 (In millions) Gross Accumulated Net Gross Accumulated Net Client Relationships $ 3,717 $ 1,260 $ 2,457 $ 3,713 $ 1,170 $ 2,543 Other (a) 387 241 146 386 230 156 Amortized intangibles $ 4,104 $ 1,501 $ 2,603 $ 4,099 $ 1,400 $ 2,699 (a) Primarily non-compete agreements, trade names and developed technology. Aggregate amortization expense for the three months ended March 31, 2021 and 2020 was $100 million and $86 million, respectively. The estimated future aggregate amortization expense is as follows: For the Years Ending December 31, (In millions) Estimated Expense 2021 (excludes amortization through March 31, 2021) $ 258 2022 318 2023 293 2024 276 2025 238 Subsequent years 1,220 $ 2,603 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value Hierarchy The Company has categorized its assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy as defined by the FASB. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy, for disclosure purposes, is determined based on the lowest level input that is significant to the fair value measurement. Assets and liabilities recorded in the consolidated balance sheets at fair value are categorized based on the inputs in the valuation techniques as follows: Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market (examples include active exchange-traded equity securities and exchange-traded money market mutual funds). Assets and liabilities measured using Level 1 inputs include exchange-traded equity securities, exchange-traded mutual funds and money market funds. Level 2. Assets and liabilities whose values are based on the following: a) Quoted prices for similar assets or liabilities in active markets; b) Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently); c) Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and d) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full asset or liability (for example, certain mortgage loans). Assets and liabilities using Level 2 inputs are related to an equity security. Level 3. Assets and liabilities whose values are based on prices, or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. Assets and liabilities measured using Level 3 inputs relate to assets and liabilities for contingent purchase consideration. Valuation Techniques Equity Securities, Money Market Mutual Funds and Mutual Funds – Level 1 Investments for which market quotations are readily available are valued at the sale price on their principal exchange or, for certain markets, official closing bid price. Money market mutual funds are valued using a valuation technique that results in price per share at $1.00. Contingent Purchase Consideration Assets and Liabilities – Level 3 Purchase consideration for some acquisitions and dispositions made by the Company include contingent consideration arrangements. Contingent consideration arrangements are based primarily on EBITDA or revenue targets over a period of two The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020. Identical Assets Observable Inputs Unobservable Total (In millions) 03/31/21 12/31/20 03/31/21 12/31/20 03/31/21 12/31/20 03/31/21 12/31/20 Assets: Financial instruments owned: Exchange traded equity securities (a) $ 60 $ 59 $ — $ — $ — $ — $ 60 $ 59 Mutual funds (a) 183 186 — — — — 183 186 Money market funds (b) 65 587 — — — — 65 587 Other equity investment (a) — — 8 8 — — 8 8 Contingent purchase consideration asset (c) — — — — 66 68 66 68 Total assets measured at fair value $ 308 $ 832 $ 8 $ 8 $ 66 $ 68 $ 382 $ 908 Fiduciary Assets: U.S. Treasury Bills $ — $ 150 $ — $ — $ — $ — $ — $ 150 Money market funds 241 173 — — — — 241 173 Total fiduciary assets measured $ 241 $ 323 $ — $ — $ — $ — $ 241 $ 323 Liabilities: Contingent purchase consideration liability (d) $ — $ — $ — $ — $ 233 $ 243 $ 233 $ 243 Total liabilities measured at fair value $ — $ — $ — $ — $ 233 $ 243 $ 233 $ 243 (a) Included in other assets in the consolidated balance sheets. (b) Included in cash and cash equivalents in the consolidated balance sheets. (c) Included in other receivables in the consolidated balance sheets. (d) Included in accounts payable and accrued liabilities and other liabilities in the consolidated balance sheets. The Level 3 assets in the above chart reflect contingent purchase consideration from the sale of businesses during 2019. The change in the asset from December 31, 2020 is primarily due to the net impact of payments and accretion. During the three-month period ended March 31, 2021, there were no assets or liabilities that were transferred between any of the levels. The table below sets forth a summary of the changes in fair value of the Company’s Level 3 liabilities for the three month periods ended March 31, 2021 and 2020: Three Months Ended (In millions) 2021 2020 Balance at beginning of period $ 243 $ 225 Net Additions — 30 Payments (11) (13) Revaluation Impact 1 1 Other (a) — (4) Balance at March 31, $ 233 $ 239 (a) Primarily reflects the impact of foreign exchange. Long-Term Investments The Company holds investments in public and private companies as well as certain private equity investments that are accounted for using the equity method of accounting. The carrying value of these investments was $289 million and $280 million at March 31, 2021 and December 31, 2020, respectively. Investments in Public and Private Companies The Company has investments in private insurance and consulting companies with a carrying value of $172 million and $169 million at March 31, 2021 and December 31, 2020, respectively. These investments are accounted for using the equity method of accounting, the results of which are included in revenue in the consolidated statements of income and the carrying value of which is included in other assets in the consolidated balance sheets. The Company records its share of income or loss on its equity method investments, some of which are on a one quarter lag basis. Private Equity Investments The Company's investments in private equity funds were $117 million and $111 million at March 31, 2021 and December 31, 2020, respectively. The carrying values of these private equity investments approximate fair value. The underlying private equity funds follow investment company accounting, where investments within the fund are carried at fair value. The Company records in earnings its proportionate share of the change in fair value of the funds on the investment income (loss) line in the consolidated statements of income. These investments are included in other assets in the consolidated balance sheets. The Company recorded net investment gains of $10 million and losses of $1 million from these investments for the three month periods ended March 31, 2021 and March 31, 2020. Other Investments At March 31, 2021 and December 31, 2020, the Company held certain equity investments with readily determinable market values of $74 million and $72 million, respectively, including an investment in the common stock of Alexander Forbes (" AF") of $55 million at March 31, 2021 and $54 million at December 31, 2020. The Company also held investments without readily determinable market values of $33 million at March 31, 2021 and December 31, 2020. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Net Investment Hedge The Company has investments in various subsidiaries with Euro functional currencies. As a result, the Company is exposed to the risk of fluctuations between the Euro and U.S. dollar exchange rates. The Company designated its €1.1 billion senior note debt instruments ("euro notes") as a net investment hedge (the "hedge") of its Euro denominated subsidiaries. The hedge effectiveness is re-assessed each quarter to confirm that the designated equity balance at the beginning of each period continues to equal or exceed 80% of the outstanding balance of the Euro debt instrument and that all the critical terms of the hedging instrument and the hedged net investment continue to match. If the Company concludes that the hedge is highly effective, the change in the debt balance related to foreign exchange fluctuations is recorded in foreign currency translation gains (losses) in the consolidated balance sheet. The Company concluded that the hedge continues to be highly effective as of March 31, 2021. The U.S. dollar value of the euro notes decreased $53 million through March 31, 2021 due to the impact of foreign exchange rates, with a corresponding decrease to accumulated other comprehensive loss. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases A lease is defined as a party obtaining the right to use an asset legally owned by another party. The Company determines if an arrangement is a lease at inception. Operating leases are recognized in the balance sheet as Right-of-Use ("ROU") assets and operating lease liabilities based on the present value of the remaining future minimum payments over the lease term at commencement date of the lease. The Company uses discount rates to determine the present value of future lease payments. The Company primarily uses its incremental borrowing rate adjusted to reflect a secured rate, based on the information available for leases, including the lease term and interest rate environment in the country in which the lease exists. The lease terms used to calculate the ROU asset and lease liability may include options to extend or terminate when it is reasonably certain that the Company will exercise that option. The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 10 and 25 years. The Company utilizes these leased office facilities for use by its employees in countries in which the Company conducts its business. Leases are negotiated with third-parties and, in some instances contain renewal, expansion and termination options. The Company also subleases certain office facilities to third-parties when the Company no longer utilizes the space. None of the Company’s leases restrict the payment of dividends or the incurrence of debt or additional lease obligations, or contain significant purchase options. In addition to the base rental costs, our lease agreements generally provide for rent escalations resulting from increased assessments for real estate taxes and other charges. A portion of our real estate lease portfolio contains base rents subject to annual changes in the Consumer Price Index ("CPI") as well as charges for operating expenses which are reimbursable to the landlord based on actual usage. Changes to the CPI and payments for such reimbursable operating expenses are considered variable and are recognized as variable lease costs in the period in which the obligation for those payments is incurred. Approximately 99% of the Company’s lease obligations are for the use of office space. All of the Company’s material leases are operating leases. As a practical expedient, the Company has elected an accounting policy not to separate non-lease components from lease components and instead account as a single lease component. The Company has also elected not to recognize ROU assets and lease liabilities for leases that, at the commencement date, are for 12 months or less. The following chart provides additional information about the Company’s property leases: Three Months Ended March 31, (In millions) 2021 2020 Lease Cost: Operating lease cost $ 94 $ 92 Short-term lease cost 1 1 Variable lease cost 37 37 Sublease income (8) (5) Net lease cost $ 124 $ 125 Other information: Operating cash outflows from operating leases $ 99 $ 103 Right of use assets obtained in exchange for new operating lease liabilities $ 22 $ 79 Weighted-average remaining lease term – real estate 8.3 years 8.7 years Weighted-average discount rate – real estate leases 2.93 % 3.06 % Future minimum lease payments for the Company’s operating leases as of March 31, 2021 are as follows: Payment Dates (In millions) Real Estate Leases Remainder of 2021 $ 308 2022 381 2023 332 2024 289 2025 257 2026 235 Subsequent years 678 Total future lease payments 2,480 Less: Imputed interest (288) Total $ 2,192 Current lease liabilities $ 342 Long-term lease liabilities 1,850 Total lease liabilities $ 2,192 Note: Table excludes obligations for leases with original terms of 12 months or less which have not been recognized as a right to use asset or liability in the consolidated balance sheets. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The Company maintains qualified and non-qualified defined benefit pension plans for some of its U.S. and non-U.S. eligible employees. The Company’s policy for funding its tax-qualified defined benefit pension plans is to contribute amounts at least sufficient to meet the funding requirements set forth in accordance with applicable law. The target asset allocation for the Company's U.S. plans is 64% equities and equity alternatives and 36% fixed income. At March 31, 2021 the actual allocation for the Company's U.S. Plan was 65% equities and equity alternatives and 35% fixed income. The target allocation for the U.K. Plans at March 31, 2021 is 28% equities and equity alternatives and 72% fixed income. At March 31, 2021, the actual allocation for the U.K. Plans was 30% equities and equity alternatives and 70% fixed income. The Company's U.K. Plans comprised approximately 81% of non-U.S. plan assets at December 31, 2020. The assets of the Company's defined benefit plans are diversified and are managed in accordance with applicable laws and with the goal of maximizing the plans' real return within acceptable risk parameters. The Company generally uses threshold-based portfolio re-balancing to ensure the actual portfolio remains consistent with target asset allocation ranges. The components of the net periodic benefit cost for defined benefit and other post-retirement plans are as follows: Combined U.S. and significant non-U.S. Plans Pension Post-retirement For the Three Months Ended March 31, (In millions) 2021 2020 2021 2020 Service cost $ 10 $ 8 $ — $ — Interest cost 85 106 — 1 Expected return on plan assets (208) (210) — — Amortization of prior service credit — — (1) (1) Recognized actuarial loss 52 40 1 — Net periodic benefit credit $ (61) $ (56) $ — $ — Amounts Recorded in the Consolidated Statement of Income Combined U.S. and significant non-U.S. Plans Pension Post-retirement For the Three Months Ended March 31, (In millions) 2021 2020 2021 2020 Compensation and benefits expense $ 10 $ 8 $ — $ — Other net benefit credits (71) (64) — — Total credit $ (61) $ (56) $ — $ — U.S. Plans only Pension Post-retirement For the Three Months Ended March 31, (In millions) 2021 2020 2021 2020 Interest cost $ 46 $ 53 $ — $ — Expected return on plan assets (82) (86) — — Recognized actuarial loss 23 18 — — Net periodic benefit credit $ (13) $ (15) $ — $ — Significant non-U.S. Plans only Pension Post-retirement For the Three Months Ended March 31, (In millions) 2021 2020 2021 2020 Service cost $ 10 $ 8 $ — $ — Interest cost 39 53 — 1 Expected return on plan assets (126) (124) — — Amortization of prior service credit — — (1) (1) Recognized actuarial loss 29 22 1 — Net periodic benefit credit $ (48) $ (41) $ — $ — The weighted average actuarial assumptions utilized to calculate the net periodic benefit costs for the U.S. and significant non-U.S. defined benefit plans are as follows: Combined U.S. and significant non-U.S. Plans Pension Post-retirement March 31, 2021 2020 2021 2020 Weighted average assumptions: Expected return on plan assets 4.72 % 5.31 % — — Discount rate 1.92 % 2.57 % 2.42 % 2.72 % Rate of compensation increase 1.85 % 1.76 % — — The Company made approximately $29 million of contributions to its U.S. and non-U.S. defined benefit pension plans for the three months ended March 31, 2021. The Company expects to contribute approximately $100 million to its U.S. and non-U.S. defined benefit pension plans during the remainder of 2021. Defined Contribution Plans The Company maintains certain defined contribution plans ("DC Plans") for its employees, the most significant being in the U.S. and the U.K. The cost of the U.S. DC Plans was $39 million and $37 million for the three months ended March 31, 2021 and 2020, respectively. The cost of the U.K. DC Plans w as $39 million a nd $31 million for the three months ended March 31, 2021 and 2020, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding debt is as follows: (In millions) March 31, December 31, Short-term: Current portion of long-term debt $ 1,015 $ 517 1,015 517 Long-term: Senior notes – 4.80% due 2021 500 500 Senior notes – 2.75% due 2022 499 499 Senior notes – 3.30% due 2023 349 349 Senior notes – 4.05% due 2023 249 249 Senior notes – 3.50% due 2024 598 598 Senior notes – 3.875% due 2024 995 995 Senior notes – 3.50% due 2025 498 498 Senior notes – 1.349% due 2026 650 677 Senior notes – 3.75% due 2026 598 597 Senior notes – 4.375% due 2029 1,499 1,499 Senior notes – 1.979% due 2030 638 664 Senior notes – 2.250% due 2030 738 737 Senior notes – 5.875% due 2033 298 298 Senior notes – 4.75% due 2039 495 495 Senior notes – 4.35% due 2047 493 493 Senior notes – 4.20% due 2048 592 592 Senior notes – 4.90% due 2049 1,237 1,237 Mortgage – 5.70% due 2035 327 331 Other 4 5 11,257 11,313 Less current portion 1,015 517 $ 10,242 $ 10,796 The senior notes in the table above are registered by the Company with the Securities and Exchange Commission and are not guaranteed. On April 9, 2021, the Company increased its short-term commercial paper financing program to $2.0 billion from $1.5 billion. The proceeds from the issuance of commercial paper are used for general corporate purposes. The Company had no commercial paper outstanding at March 31, 2021. Credit Facilities On April 2, 2021, the Company entered into an amended and restated multi-currency unsecured $2.8 billion five-year revolving credit facility ("New Facility"). The interest rate on the New Facility is based on LIBOR plus a fixed margin which varies with the Company’s credit ratings. The New Facility expires in April 2026 and requires the Company to maintain certain coverage and leverage ratios which are tested quarterly. The New Facility includes provisions for determining a LIBOR successor rate in the event LIBOR reference rates are no longer available or in certain other circumstances which are determined to make using an alternative rate desirable. In connection with the New Facility, the Company terminated its multicurrency unsecured $1.8 billion five-year revolving credit facility (“Old Facility”) and its unsecured $1 billion 364-day unsecured revolving credit facility (“364-day Facility). The Old Facility had similar interest rate, coverage and leverage ratios as the New Facility. The Company entered into the 364-day Facility in April 2020 with a term out option after one year. As of March 31, 2021, the Company had no borrowings under either of these facilities. In January 2020, the Company closed on $500 million one-year and $500 million two-year term loan facilities. In the first quarter of 2020 the Company borrowed $1 billion against these facilities, which were subsequently repaid during the third and fourth quarters of 2020. These two facilities were terminated as of December 31, 2020 after repayment of the initial draw down. Additional credit facilities, guarantees and letters of credit are maintained with various banks, primarily related to operations located outside the United States, aggregatin g $517 million at March 31, 2021 and $573 million at December 31, 2020. There were no outstanding borrowings under these facilities at March 31, 2021 and December 31, 2020. Senior Notes On April 15, 2021, the Company repaid $500 million of senior notes maturing in July 2021. In May 2020, the Company issued $750 million of Senior Notes due 2030. In March 2020, the Company repaid $500 million of maturing senior notes and in December 2020, the Company repaid $700 million of maturing senior notes and $300 million of floating rate notes with an original maturity of December 2021. Fair Value of Short-term and Long-term Debt The estimated fair value of the Company’s short-term and long-term debt is provided below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or need to dispose of the financial instrument. March 31, 2021 December 31, 2020 (In millions) Carrying Fair Carrying Fair Short-term debt $ 1,015 $ 1,026 $ 517 $ 523 Long-term debt $ 10,242 $ 11,555 $ 10,796 $ 12,858 The fair value of the Company's short-term debt consists primarily of borrowings from the term loan and revolving credit facilities and term debt maturing within the next year and its fair value approximates its carrying value. The estimated fair value of a primary portion of the Company's long-term debt is based on discounted future cash flows using current interest rates available for debt with similar terms and remaining maturities. Short-term and long-term debt would be classified as Level 2 in the fair value hierarchy. |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs Jardine Lloyd Thompson Group plc ("JLT") Related Integration and Restructuring The Company is in the final stages of its integration of JLT, which the Company acquired in April 2019. The costs incurred in connection with the integration and restructuring of the combined businesses, primarily related to severance, real estate rationalization and technology, consulting fees related to the management of the integration processes and legal fees related to the rationalization of legal entity structures. Since the acquisition of JLT, the Company has incurred JLT integration and restructuring costs of $609 million through March 31, 2021. This reflects $23 million of costs incurred during the first quarter of 2021 compared to $80 million for the same period in the prior year. Costs recognized are based on applicable accounting guidance which includes accounting for disposal or exit activities, guidance related to impairment of long lived assets (for right of use assets related to real estate leases), as well as other costs resulting from accelerated depreciation or amortization of leasehold improvements and other property and equipment. In connection with the JLT integration and restructuring, the Company incurred costs of $23 million: $16 million in RIS, $6 million in Consulting, and $1 million in Corporate for the three month period ended March 31, 2021. The severance and related costs were included in compensation and benefits and the other costs were included in other operating expenses in the consolidated statement of income. Details of the JLT integration and restructuring activity from January 1, 2020 through March 31, 2021, are as follows: (In millions) Severance Real Estate Related Costs (a) Information Technology (a) Consulting and Other Outside Services (b) Total Liability at 1/1/20 $ 42 $ 5 $ — $ — $ 47 2020 Charges 43 69 62 77 251 Cash payments (69) (25) (55) (77) (226) Non-cash charges — (42) (5) — (47) Liability at 12/31/20 $ 16 $ 7 $ 2 $ — $ 25 2021 Charges 2 6 7 8 23 Cash payments (10) (2) (7) (7) (26) Non-cash charges — (4) — — (4) Liability at 3/31/21 $ 8 $ 7 $ 2 $ 1 $ 18 (a) Includes ROU asset impairments, data center contract termination costs and temporary infrastructure leasing costs. (b) Includes consulting fees related to the management of the integration processes and legal fees related to the rationalization of legal entity structures. Other Restructuring The Company incurred costs of $11 million for the three month period ended March 31, 2021 which reflect costs associated with the Company's global information technology and HR functions, and adjustments to restructuring liabilities for future rent under non-cancellable leases. The following details other restructuring liabilities for actions initiated prior to 2021: (In millions) Liability at Amounts Cash Non-Cash/Other Liability at 12/31/20 Amounts Cash Non-Cash/Other Liability at 3/31/21 Severance $ 51 $ 39 $ (54) $ — $ 36 $ 5 $ (20) $ — $ 21 Future rent under non-cancelable leases and other costs 51 50 (46) (10) 45 6 (8) — 43 Total $ 102 $ 89 $ (100) $ (10) $ 81 $ 11 $ (28) $ — $ 64 |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Common Stock | Common Stock During the first three months of 2021, the Company repurchased 1.0 million shares of its common stock for $119 million, of which approximately $112 million was paid in the first quarter of 2021. In November 2019, the Board of Directors of the Company authorized the Company to repurchase up to $2.5 billion in shares of the Company's common stock, which superseded any prior authorizations. As of March 31, 2021, the Company remained authorized to repurchase up to approximately $2.3 billion in shares of its common stock. There is no time limit on the authorization. During the first three months of 2020 there wer e no repurc hases of the Company's common stock. The Company issued approxim ately 2.0 million a nd 2.3 million shares related to stock compensation and employee stock purchase plans during the first three months of 2021 and 2020, respectively. |
Claims, Lawsuits And Other Cont
Claims, Lawsuits And Other Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Claims, Lawsuits, and Other Contingencies | Claims, Lawsuits and Other Contingencies Nature of Contingencies The Company and its subsidiaries are subject to a significant number of claims, lawsuits and proceedings in the course of our business. Such claims and lawsuits consist principally of alleged errors and omissions in connection with the performance of professional services, including the placement of insurance, the provision of actuarial services for corporate and public sector clients, the provision of investment advice and investment management services to pension plans, the provision of advice relating to pension buy-out transactions and the provision of consulting services relating to the drafting and interpretation of trust deeds and other documentation governing pension plans. These claims often seek damages, including punitive and treble damages, in amounts that could be significant. In establishing liabilities for errors and omissions claims in accordance with FASB guidance on Contingencies - Loss Contingencies, the Company uses case level reviews by inside and outside counsel, and internal actuarial analysis by Oliver Wyman, a subsidiary of the Company, and other methods to estimate potential losses. A liability is established when a loss is both probable and reasonably estimable. The liability is reviewed quarterly and adjusted as developments warrant. In many cases, the Company has not recorded a liability, other than for legal fees to defend the claim, because we are unable, at the present time, to make a determination that a loss is both probable and reasonably estimable. To the extent that expected losses exceed our deductible in any policy year, the Company also records an asset for the amount that we expect to recover under any available third-party insurance programs. The Company has varying levels of third-party insurance coverage, with policy limits and coverage terms varying significantly by policy year. Our activities are regulated under the laws of the United States and its various states, the European Union and its member states, and the many other jurisdictions in which the Company operates. The Company also receives subpoenas in the ordinary course of business and, from time to time, receives requests for information in connection with governmental investigations. Current Matters Risk and Insurance Services Segment • In January 2019, the Company received a notice that the Administrative Council for Economic Defense anti-trust agency in Brazil had commenced an administrative proceeding against a number of insurance brokers, including both Marsh and JLT, and insurers “to investigate an alleged sharing of sensitive commercial and competitive confidential information" in the aviation insurance and reinsurance sector. • In 2017, JLT identified payments to a third-party introducer that had been directed to unapproved bank accounts. These payments related to reinsurance placements made on behalf of an Ecuadorian state-owned insurer between 2014 and 2017. In early 2018, JLT voluntarily reported this matter to law enforcement authorities. In February and March 2020, money laundering charges were filed in the United States against a former employee of JLT, the principals of the third-party introducer and a former official of the state-owned insurer. These individuals, including the former JLT employee, have since pleaded guilty to criminal charges. We are cooperating with all ongoing investigations related to this matter. • From 2014, Marsh Ltd. was engaged by Greensill Capital (UK) Limited as its insurance broker. Marsh Ltd. placed a number of trade credit insurance policies for Greensill. On March 1, 2021, Greensill filed an action against certain of its trade credit insurers in Australia seeking a mandatory injunction compelling these insurers to renew coverage under expiring policies. Later that day, the Australian court denied Greensill’s application. Since then, a number of Greensill entities have filed for, or been subject to, insolvency proceedings in the U.K., Australia, Germany and the U.S. Consulting Segment • In 2014, the FCA conducted an industry-wide review of the suitability of financial advice provided to individuals by a number of companies, including JLT, relating to enhanced transfer value ("ETV") defined benefit pension transfers. In January 2015, the FCA notified JLT that it was commissioning a Skilled Person review of ETV pension transfer advice given by JLT and a business acquired by JLT in 2012. Following the Skilled Person review which took place between 2015 and 2018, JLT engaged a compliance consulting firm to conduct an analysis of approximately 14,000 individual files to assess the suitability of the advice provided and, where appropriate, the amount of redress to be paid. In February 2019, prior to the completion of its acquisition by the Company, JLT recorded a gross liability of £59 million (or $77 million). This preliminary estimate by JLT, which reflected the projected redress amounts contained in the Skilled Person report, was based on a review of a limited number of files. Thereafter, the FCA expanded the scope of the thematic review. As of December 31, 2020, the updated redress liability, including the projected costs of completing the review, increased to £155 million (or $210 million) resulting from the expansion in the scope of the review, and the significant progress made in completing the individual suitability reviews. As of March 31, 2021, the recorded gross liability was £134 million ( or $185 million ). We expect to finalize the suitability review of the limited number of files that remain outstanding and calculate the majority of redress amounts by the end of the second quarter of 2021. We anticipate this gross liability will be partially offset by a contractual indemnity and insurance recoveries from third-party E&O insurers. At this time, we are unable to predict the likely timing, outcome or ultimate impact of the foregoing matters. Adverse determinations in one or more of these matters could have a material impact on the Company's consolidated results of operations, financial condition or cash flows in a future period. Other Contingencies-Guarantees In connection with its acquisition of U.K.-based Sedgwick Group in 1998, the Company acquired several insurance underwriting businesses that were already in run-off, including River Thames Insurance Company Limited ("River Thames"), which the Company sold in 2001. Sedgwick guaranteed payment of claims on certain policies underwritten through the Institute of London Underwriters (the "ILU") by River Thames. The policies covered by this guarantee are partly reinsured by a related party of River Thames. Payment of claims under the reinsurance agreement is collateralized by funds withheld by River Thames from the reinsurer. To the extent River Thames or the reinsurer is unable to meet its obligations under those policies, a claimant may seek to recover from the Company under the guarantee. From 1980 to 1983, the Company owned indirectly the English & American Insurance Company ("E&A"), which was a member of the ILU. The ILU required the Company to guarantee a portion of E&A's obligations. After E&A became insolvent in 1993, the ILU agreed to discharge the guarantee in exchange for the Company's agreement to post an evergreen letter of credit that is available to pay claims by policyholders on certain E&A policies issued through the ILU and incepting between July 3, 1980 and October 6, 1983. Certain claims have been paid under the letter of credit and the Company anticipates that additional claimants may seek to recover against the letter of credit. * * * * The pending proceedings described above and other matters not explicitly described in this Note 17 on Claims, Lawsuits and Other Contingencies may expose the Company or its subsidiaries to liability for significant monetary damages, fines, penalties or other forms of relief. Where a loss is both probable and reasonably estimable, the Company establishes liabilities in accordance with FASB guidance on Contingencies - Loss Contingencies. Except as described above, the Company is not able at this time to provide a reasonable estimate of the range of possible loss attributable to these matters or the impact they may have on the Company's consolidated results of operations, financial position or cash flows. This is primarily because these matters are still developing and involve complex issues subject to inherent uncertainty. Adverse determinations in one or more of these matters could have a material impact on the Company's consolidated results of operations, financial condition or cash flows in a future period. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company is organized based on the types of services provided. Under this structure, the Company’s segments are: • Risk and Insurance Services , comprising insurance services (Marsh) and reinsurance services (Guy Carpenter); and • Consulting , comprising Mercer and Oliver Wyman Group. The accounting policies of the segments are the same as those used for the consolidated financial statements described in Note 1 to the Company’s 2020 Form 10-K. Segment performance is evaluated based on segment operating income, which includes directly related expenses, and charges or credits related to integration and restructuring but not the Company’s corporate-level expenses. Revenues are attributed to geographic areas on the basis of where the services are performed. Selected information about the Company’s operating segments for the three-month periods ended March 31, 2021 and 2020 are as follows: Three Months Ended (In millions) Revenue Operating Income 2021– Risk and Insurance Services $ 3,225 (a) $ 1,060 Consulting 1,873 (b) 361 Total Operating Segments 5,098 1,421 Corporate/Eliminations (15) (63) Total Consolidated $ 5,083 $ 1,358 2020– Risk and Insurance Services $ 2,911 (a) $ 854 Consulting 1,762 (b) 282 Total Operating Segments 4,673 1,136 Corporate/Eliminations (22) (66) Total Consolidated $ 4,651 $ 1,070 (a) Includes interest income on fiduciary funds of $5 million and $23 million in 2021 and 2020, respectively. (b) Includes inter-segment revenue of $15 million and $21 million in 2021 and 2020, respectively. Details of operating segment revenue for the three-month period ended March 31, 2021 and 2020 are as follows: Three Months Ended (In millions) 2021 2020 Risk and Insurance Services Marsh $ 2,329 $ 2,076 Guy Carpenter 896 835 Total Risk and Insurance Services 3,225 2,911 Consulting Mercer 1,288 1,251 Oliver Wyman Group 585 511 Total Consulting 1,873 1,762 Total Operating Segments 5,098 4,673 Corporate / Eliminations (15) (22) Total $ 5,083 $ 4,651 |
New Accounting Guidance
New Accounting Guidance | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Guidance | New Accounting Guidance New Accounting Pronouncements Adopted Effective January 1, 2021: In January 2020, the FASB issued guidance that addresses accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. The standard takes effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of this standard did not have a material impact on the Company’s financial position or its results of operations. In December 2019, the FASB issued guidance related to the accounting for income taxes. The standard removes specific exceptions in the current rules and eliminates the need for an organization to analyze whether the following apply in a given period: (a) exception to the incremental approach for intraperiod tax allocation; (b) exceptions to accounting for basis differences when there are ownership changes in foreign investments and (c) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The standard also is designed to improve financial statement preparers’ application of income tax-related guidance and simplify GAAP for (a) franchise taxes that are partially based on income; (b) transactions with a government that result in a step-up in the tax basis of goodwill; (c) separate financial statements of legal entities that are not subject to tax and (d) enacted changes in tax laws in interim periods. The standard takes effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of this standard did not have a material impact on the Company’s financial position or its results of operations. New Accounting Pronouncements Adopted Effective January 1, 2020: In August 2018, the FASB issued new guidance that amends required fair value measurement disclosures. The guidance adds new requirements, eliminates some current disclosures and modifies other required disclosures. The new disclosure requirements, along with modifications made to disclosures as a result of the change in requirements for narrative descriptions of measurement uncertainty, must be applied on a prospective basis. The effects of all other amendments included in the guidance must be applied retrospectively for all periods presented. The adoption of this guidance impacted disclosures only and did not have an impact on the Company's financial position or results of operations. In January 2017, the FASB issued new guidance to simplify the test for goodwill impairment. The new guidance eliminates the second step in the current two-step goodwill impairment process, under which a goodwill impairment loss is measured by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill for that reporting unit. The new guidance requires a one-step impairment test, in which the goodwill impairment charge is based on the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance should be applied on a prospective basis with the nature of and reason for the change in accounting principle disclosed upon transition. The adoption of this standard did not have an impact on the Company's financial position or results of operations. |
Principles of Consolidation a_2
Principles of Consolidation and Other Matters (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash and Cash Equivalents | Cash and cash equivalents primarily consist of certificates of deposit and time deposits, with original maturities of three months or less, and money market funds. The estimated fair value of the Company's cash and cash equivalents approximates their carrying value. The Company is required to maintain operating funds primarily related to regulatory requirements outside of the United States or as collateral under captive insurance arrangements. |
Allowance for Credit Losses on Accounts Receivable | The Company’s policy for providing an allowance for credit losses on its accounts receivable is based on a combination of factors, including historical write-offs, aging of balances, and other qualitative and quantitative analyses. |
Investments | The caption "Investment income (loss)" in the consolidated statements of income comprises realized and unrealized gains and losses from investments recognized in earnings. It includes, when applicable, other than temporary declines in the value of securities, mark-to-market increases or decreases in equity investments with readily determinable fair values and equity method gains or losses on the Company's investments in private equity funds. The Company holds investments in certain private equity funds that are accounted for in accordance with the equity method of accounting using a consistently applied three-month lag period adjusted for any known significant changes from the lag period to the reporting date of the Company. The underlying private equity funds follow investment company accounting, where investments within the fund are carried at fair value. Investment gains or losses for the Company's proportionate share of the change in fair value of the funds are recorded in earnings. Investments accounted for using the equity method of accounting are included in "other assets" in the consolidated balance sheets. |
Income Taxes | The Company's effective tax rate in the first quarter of 2021 was 24.5% compared with 23.8% in the first quarter of 2020. The tax rates in both periods reflect the impact of discrete tax items such as excess tax benefits related to share-based compensation, enacted tax legislation, changes in uncertain tax positions, deferred tax adjustments and nontaxable adjustments to contingent acquisition consideration. The excess tax benefit related to share-based payments is the most significant discrete item, reducing the effective tax rate by 1.1% and 2.6% in the first quarters of 2021 and 2020, respectively. The Company's tax rate reflects its income, statutory tax rates and tax planning in the various jurisdictions in which it operates. Significant judgment is required in determining the annual effective tax rate and in evaluating uncertain tax positions. Losses in one jurisdiction, generally, cannot offset earnings in another, and within certain jurisdictions profits and losses may not offset between entities. Consequently, losses in certain jurisdictions may require valuation allowances affecting the effective tax rate, depending on estimates of the realizability of associated deferred tax assets. The tax rate is also sensitive to changes in unrecognized tax benefits, including the impact of settled tax audits and expired statutes of limitation. |
Integration and Restructuring Charges | Severance and related costs are recognized based on amounts due under established severance plans or estimates of one-time benefits that will be provided. Typically, severance benefits are recognized when the impacted colleagues are notified of their expected termination and such termination is expected to occur within the legally required notification period. These costs are included in compensation and benefits in the consolidated statements of income. Costs for real estate consolidation are recognized based on the type of cost, and the expected future use of the facility. For locations where the Company does not expect to sub-lease the property, the amortization of any right-of-use asset is accelerated from the decision date to the cease use date. For locations where the Company expects to sub-lease the properties subsequent to its vacating the property, the right-of-use asset is reviewed for potential impairment at the earlier of the cease use date or the date a sub-lease is signed. To determine the amount of impairment, the fair value of the right-of-use asset is determined based on the present value of the estimated net cash flows related to the property. Contractual costs outside of the right-of-use asset are recognized based on the net present value of expected future cash outflows for which the Company will not receive any benefit. Such amounts are based on estimates of future sub-lease income to be received and future contractual costs to be incurred. These costs are included in other operating expenses in the consolidated statements of income. Other costs related to integration and restructuring, such as moving, legal or consulting costs are recognized as incurred. These costs are included in other operating expenses in the consolidated statements of income. |
Fair Value Measurement | Fair Value Hierarchy The Company has categorized its assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy as defined by the FASB. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy, for disclosure purposes, is determined based on the lowest level input that is significant to the fair value measurement. Assets and liabilities recorded in the consolidated balance sheets at fair value are categorized based on the inputs in the valuation techniques as follows: Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market (examples include active exchange-traded equity securities and exchange-traded money market mutual funds). Assets and liabilities measured using Level 1 inputs include exchange-traded equity securities, exchange-traded mutual funds and money market funds. Level 2. Assets and liabilities whose values are based on the following: a) Quoted prices for similar assets or liabilities in active markets; b) Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently); c) Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and d) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full asset or liability (for example, certain mortgage loans). Assets and liabilities using Level 2 inputs are related to an equity security. Level 3. Assets and liabilities whose values are based on prices, or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. Assets and liabilities measured using Level 3 inputs relate to assets and liabilities for contingent purchase consideration. Valuation Techniques Equity Securities, Money Market Mutual Funds and Mutual Funds – Level 1 Investments for which market quotations are readily available are valued at the sale price on their principal exchange or, for certain markets, official closing bid price. Money market mutual funds are valued using a valuation technique that results in price per share at $1.00. Contingent Purchase Consideration Assets and Liabilities – Level 3 Purchase consideration for some acquisitions and dispositions made by the Company include contingent consideration arrangements. Contingent consideration arrangements are based primarily on EBITDA or revenue targets over a period of two |
New Accounting Pronouncements | New Accounting Guidance New Accounting Pronouncements Adopted Effective January 1, 2021: In January 2020, the FASB issued guidance that addresses accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. The standard takes effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of this standard did not have a material impact on the Company’s financial position or its results of operations. In December 2019, the FASB issued guidance related to the accounting for income taxes. The standard removes specific exceptions in the current rules and eliminates the need for an organization to analyze whether the following apply in a given period: (a) exception to the incremental approach for intraperiod tax allocation; (b) exceptions to accounting for basis differences when there are ownership changes in foreign investments and (c) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The standard also is designed to improve financial statement preparers’ application of income tax-related guidance and simplify GAAP for (a) franchise taxes that are partially based on income; (b) transactions with a government that result in a step-up in the tax basis of goodwill; (c) separate financial statements of legal entities that are not subject to tax and (d) enacted changes in tax laws in interim periods. The standard takes effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of this standard did not have a material impact on the Company’s financial position or its results of operations. New Accounting Pronouncements Adopted Effective January 1, 2020: In August 2018, the FASB issued new guidance that amends required fair value measurement disclosures. The guidance adds new requirements, eliminates some current disclosures and modifies other required disclosures. The new disclosure requirements, along with modifications made to disclosures as a result of the change in requirements for narrative descriptions of measurement uncertainty, must be applied on a prospective basis. The effects of all other amendments included in the guidance must be applied retrospectively for all periods presented. The adoption of this guidance impacted disclosures only and did not have an impact on the Company's financial position or results of operations. In January 2017, the FASB issued new guidance to simplify the test for goodwill impairment. The new guidance eliminates the second step in the current two-step goodwill impairment process, under which a goodwill impairment loss is measured by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill for that reporting unit. The new guidance requires a one-step impairment test, in which the goodwill impairment charge is based on the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance should be applied on a prospective basis with the nature of and reason for the change in accounting principle disclosed upon transition. The adoption of this standard did not have an impact on the Company's financial position or results of operations. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following schedule disaggregates components of the Company's revenue: Three Months Ended (In millions) 2021 2020 Marsh: EMEA $ 837 $ 754 Asia Pacific 274 238 Latin America 90 91 Total International 1,201 1,083 U.S./Canada 1,124 978 Total Marsh 2,325 2,061 Guy Carpenter 895 827 Subtotal 3,220 2,888 Fiduciary interest income 5 23 Total Risk and Insurance Services $ 3,225 $ 2,911 Mercer: Wealth $ 623 $ 592 Health 487 486 Career 178 173 Total Mercer 1,288 1,251 Oliver Wyman 585 511 Total Consulting $ 1,873 $ 1,762 |
Contract with Customer, Asset and Liability | The following schedule provides contract assets and contract liabilities information from contracts with customers. (In millions) March 31, 2021 December 31, 2020 Contract Assets $ 304 $ 236 Contract Liabilities $ 737 $ 676 |
Per Share Data (Tables)
Per Share Data (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted EPS Calculation | Basic and Diluted EPS Calculation Three Months Ended (In millions, except per share amounts) 2021 2020 Net income before non-controlling interests $ 998 $ 767 Less: Net income attributable to non-controlling interests 15 13 Net income attributable to the Company $ 983 $ 754 Basic weighted average common shares outstanding 509 505 Dilutive effect of potentially issuable common shares 5 5 Diluted weighted average common shares outstanding 514 510 Average stock price used to calculate common stock equivalents $ 114.96 $ 107.10 |
Supplemental Disclosures to t_2
Supplemental Disclosures to the Consolidated Statements of Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Additional Information Concerning Acquisitions, Interest and Income Taxes Paid | The following schedule provides additional information concerning acquisitions, interest and income taxes paid for the three-month periods ended March 31, 2021 and 2020. (In millions) 2021 2020 Assets acquired, excluding cash $ — $ 249 Liabilities assumed — (5) Contingent/deferred purchase consideration — (44) Net cash outflow for current year acquisitions $ — $ 200 (In millions) 2021 2020 Interest paid $ 191 $ 199 Income taxes paid, net of refunds $ 122 $ 136 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes, net of tax, in the balances of each component of Accumulated Other Comprehensive Income ("AOCI") for the three-month periods ended March 31, 2021 and 2020, including amounts reclassified out of AOCI, are as follows: (In millions) Pension/Post-Retirement Plans Gains (Losses) Foreign Currency Translation Gains (Losses) Total Gains (Losses) Balance as of December 31, 2020 $ (4,126) $ (984) $ (5,110) Other comprehensive loss before reclassifications (36) (91) (127) Amounts reclassified from accumulated other comprehensive income 40 — 40 Net current period other comprehensive income (loss) 4 (91) (87) Balance as of March 31, 2021 $ (4,122) $ (1,075) $ (5,197) (In millions) Pension/Post-Retirement Plans Gains (Losses) Foreign Currency Translation Gains (Losses) Total Gains (Losses) Balance as of December 31, 2019 $ (3,512) $ (1,543) $ (5,055) Other comprehensive income (loss) before reclassifications 109 (930) (821) Amounts reclassified from accumulated other comprehensive income 29 — 29 Net current period other comprehensive income (loss) 138 (930) (792) Balance as of March 31, 2020 $ (3,374) $ (2,473) $ (5,847) |
Schedule of Components of Comprehensive Income (Loss) | The components of other comprehensive income (loss) for the three-month periods ended March 31, 2021 and 2020 are as follows: Three Months Ended March 31, 2021 2020 (In millions) Pre-Tax Tax (Credit) Net of Tax Pre-Tax Tax (Credit) Net of Tax Foreign currency translation adjustments $ (91) $ — $ (91) $ (941) $ (11) $ (930) Pension/post-retirement plans: Amortization of (gains) losses included in net periodic pension cost: Net actuarial losses (a) 52 12 40 40 11 29 Subtotal 52 12 40 40 11 29 Foreign currency translation adjustments (37) (8) (29) 135 26 109 Other adjustments (7) (2) (5) — — — Effect of remeasurement (2) — (2) — — — Pension/post-retirement plans gains 6 2 4 175 37 138 Other comprehensive (loss) income $ (85) $ 2 $ (87) $ (766) $ 26 $ (792) (a) Components of net periodic pension cost are included in other net benefit credits in the consolidated statements of income. Income tax expense on net actuarial losses are included in income tax expense. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Pro-Forma Information | The following unaudited pro-forma financial data gives effect to the acquisitions made by the Company during 2020. In accordance with accounting guidance related to pro-forma disclosures, the information presented for acquisitions made in 2020 is as if they occurred on January 1, 2019. The unaudited pro-forma information adjusts for the effects of amortization of acquired intangibles. The unaudited pro-forma financial data is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved if such acquisitions had occurred on the dates indicated, nor is it necessarily indicative of future consolidated results. Three Months Ended (In millions, except per share figures) 2021 2020 Revenue $ 5,083 $ 4,705 Net income attributable to the Company $ 983 $ 755 Basic net income per share attributable to the Company $ 1.93 $ 1.50 Diluted net income per share attributable to the Company $ 1.91 $ 1.48 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill are as follows: March 31, (In millions) 2021 2020 Balance as of January 1, $ 15,517 $ 14,671 Goodwill acquired — 142 Other adjustments (a) (59) (401) Balance at March 31, $ 15,458 $ 14,412 (a) Primarily reflects the impact of foreign exchange. |
Amortized Intangible Assets | The gross cost and accumulated amortization of identified intangible assets at March 31, 2021 and December 31, 2020 are as follows: March 31, 2021 December 31, 2020 (In millions) Gross Accumulated Net Gross Accumulated Net Client Relationships $ 3,717 $ 1,260 $ 2,457 $ 3,713 $ 1,170 $ 2,543 Other (a) 387 241 146 386 230 156 Amortized intangibles $ 4,104 $ 1,501 $ 2,603 $ 4,099 $ 1,400 $ 2,699 (a) Primarily non-compete agreements, trade names and developed technology. |
Estimated Future Aggregate Amortization Expense | The estimated future aggregate amortization expense is as follows: For the Years Ending December 31, (In millions) Estimated Expense 2021 (excludes amortization through March 31, 2021) $ 258 2022 318 2023 293 2024 276 2025 238 Subsequent years 1,220 $ 2,603 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020. Identical Assets Observable Inputs Unobservable Total (In millions) 03/31/21 12/31/20 03/31/21 12/31/20 03/31/21 12/31/20 03/31/21 12/31/20 Assets: Financial instruments owned: Exchange traded equity securities (a) $ 60 $ 59 $ — $ — $ — $ — $ 60 $ 59 Mutual funds (a) 183 186 — — — — 183 186 Money market funds (b) 65 587 — — — — 65 587 Other equity investment (a) — — 8 8 — — 8 8 Contingent purchase consideration asset (c) — — — — 66 68 66 68 Total assets measured at fair value $ 308 $ 832 $ 8 $ 8 $ 66 $ 68 $ 382 $ 908 Fiduciary Assets: U.S. Treasury Bills $ — $ 150 $ — $ — $ — $ — $ — $ 150 Money market funds 241 173 — — — — 241 173 Total fiduciary assets measured $ 241 $ 323 $ — $ — $ — $ — $ 241 $ 323 Liabilities: Contingent purchase consideration liability (d) $ — $ — $ — $ — $ 233 $ 243 $ 233 $ 243 Total liabilities measured at fair value $ — $ — $ — $ — $ 233 $ 243 $ 233 $ 243 (a) Included in other assets in the consolidated balance sheets. (b) Included in cash and cash equivalents in the consolidated balance sheets. (c) Included in other receivables in the consolidated balance sheets. (d) Included in accounts payable and accrued liabilities and other liabilities in the consolidated balance sheets. |
Changes in Fair Value of Level 3 Liabilities Representing Acquisition Related Contingent Consideration | The table below sets forth a summary of the changes in fair value of the Company’s Level 3 liabilities for the three month periods ended March 31, 2021 and 2020: Three Months Ended (In millions) 2021 2020 Balance at beginning of period $ 243 $ 225 Net Additions — 30 Payments (11) (13) Revaluation Impact 1 1 Other (a) — (4) Balance at March 31, $ 233 $ 239 (a) Primarily reflects the impact of foreign exchange. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease Cost and Additional Information | The following chart provides additional information about the Company’s property leases: Three Months Ended March 31, (In millions) 2021 2020 Lease Cost: Operating lease cost $ 94 $ 92 Short-term lease cost 1 1 Variable lease cost 37 37 Sublease income (8) (5) Net lease cost $ 124 $ 125 Other information: Operating cash outflows from operating leases $ 99 $ 103 Right of use assets obtained in exchange for new operating lease liabilities $ 22 $ 79 Weighted-average remaining lease term – real estate 8.3 years 8.7 years Weighted-average discount rate – real estate leases 2.93 % 3.06 % |
Future Minimum Lease Payments for Operating Leases | Future minimum lease payments for the Company’s operating leases as of March 31, 2021 are as follows: Payment Dates (In millions) Real Estate Leases Remainder of 2021 $ 308 2022 381 2023 332 2024 289 2025 257 2026 235 Subsequent years 678 Total future lease payments 2,480 Less: Imputed interest (288) Total $ 2,192 Current lease liabilities $ 342 Long-term lease liabilities 1,850 Total lease liabilities $ 2,192 Note: Table excludes obligations for leases with original terms of 12 months or less which have not been recognized as a right to use asset or liability in the consolidated balance sheets. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of the net periodic benefit cost for defined benefit and other post-retirement plans are as follows: Combined U.S. and significant non-U.S. Plans Pension Post-retirement For the Three Months Ended March 31, (In millions) 2021 2020 2021 2020 Service cost $ 10 $ 8 $ — $ — Interest cost 85 106 — 1 Expected return on plan assets (208) (210) — — Amortization of prior service credit — — (1) (1) Recognized actuarial loss 52 40 1 — Net periodic benefit credit $ (61) $ (56) $ — $ — Amounts Recorded in the Consolidated Statement of Income Combined U.S. and significant non-U.S. Plans Pension Post-retirement For the Three Months Ended March 31, (In millions) 2021 2020 2021 2020 Compensation and benefits expense $ 10 $ 8 $ — $ — Other net benefit credits (71) (64) — — Total credit $ (61) $ (56) $ — $ — U.S. Plans only Pension Post-retirement For the Three Months Ended March 31, (In millions) 2021 2020 2021 2020 Interest cost $ 46 $ 53 $ — $ — Expected return on plan assets (82) (86) — — Recognized actuarial loss 23 18 — — Net periodic benefit credit $ (13) $ (15) $ — $ — Significant non-U.S. Plans only Pension Post-retirement For the Three Months Ended March 31, (In millions) 2021 2020 2021 2020 Service cost $ 10 $ 8 $ — $ — Interest cost 39 53 — 1 Expected return on plan assets (126) (124) — — Amortization of prior service credit — — (1) (1) Recognized actuarial loss 29 22 1 — Net periodic benefit credit $ (48) $ (41) $ — $ — |
Schedule of Assumptions Used | The weighted average actuarial assumptions utilized to calculate the net periodic benefit costs for the U.S. and significant non-U.S. defined benefit plans are as follows: Combined U.S. and significant non-U.S. Plans Pension Post-retirement March 31, 2021 2020 2021 2020 Weighted average assumptions: Expected return on plan assets 4.72 % 5.31 % — — Discount rate 1.92 % 2.57 % 2.42 % 2.72 % Rate of compensation increase 1.85 % 1.76 % — — |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt is as follows: (In millions) March 31, December 31, Short-term: Current portion of long-term debt $ 1,015 $ 517 1,015 517 Long-term: Senior notes – 4.80% due 2021 500 500 Senior notes – 2.75% due 2022 499 499 Senior notes – 3.30% due 2023 349 349 Senior notes – 4.05% due 2023 249 249 Senior notes – 3.50% due 2024 598 598 Senior notes – 3.875% due 2024 995 995 Senior notes – 3.50% due 2025 498 498 Senior notes – 1.349% due 2026 650 677 Senior notes – 3.75% due 2026 598 597 Senior notes – 4.375% due 2029 1,499 1,499 Senior notes – 1.979% due 2030 638 664 Senior notes – 2.250% due 2030 738 737 Senior notes – 5.875% due 2033 298 298 Senior notes – 4.75% due 2039 495 495 Senior notes – 4.35% due 2047 493 493 Senior notes – 4.20% due 2048 592 592 Senior notes – 4.90% due 2049 1,237 1,237 Mortgage – 5.70% due 2035 327 331 Other 4 5 11,257 11,313 Less current portion 1,015 517 $ 10,242 $ 10,796 |
Estimated Fair Value Of Significant Financial Instruments | The estimated fair value of the Company’s short-term and long-term debt is provided below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or need to dispose of the financial instrument. March 31, 2021 December 31, 2020 (In millions) Carrying Fair Carrying Fair Short-term debt $ 1,015 $ 1,026 $ 517 $ 523 Long-term debt $ 10,242 $ 11,555 $ 10,796 $ 12,858 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Details of the JLT integration and restructuring activity from January 1, 2020 through March 31, 2021, are as follows: (In millions) Severance Real Estate Related Costs (a) Information Technology (a) Consulting and Other Outside Services (b) Total Liability at 1/1/20 $ 42 $ 5 $ — $ — $ 47 2020 Charges 43 69 62 77 251 Cash payments (69) (25) (55) (77) (226) Non-cash charges — (42) (5) — (47) Liability at 12/31/20 $ 16 $ 7 $ 2 $ — $ 25 2021 Charges 2 6 7 8 23 Cash payments (10) (2) (7) (7) (26) Non-cash charges — (4) — — (4) Liability at 3/31/21 $ 8 $ 7 $ 2 $ 1 $ 18 (a) Includes ROU asset impairments, data center contract termination costs and temporary infrastructure leasing costs. (b) Includes consulting fees related to the management of the integration processes and legal fees related to the rationalization of legal entity structures. The following details other restructuring liabilities for actions initiated prior to 2021: (In millions) Liability at Amounts Cash Non-Cash/Other Liability at 12/31/20 Amounts Cash Non-Cash/Other Liability at 3/31/21 Severance $ 51 $ 39 $ (54) $ — $ 36 $ 5 $ (20) $ — $ 21 Future rent under non-cancelable leases and other costs 51 50 (46) (10) 45 6 (8) — 43 Total $ 102 $ 89 $ (100) $ (10) $ 81 $ 11 $ (28) $ — $ 64 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Selected Information And Details For MMC's Operating Segments | Selected information about the Company’s operating segments for the three-month periods ended March 31, 2021 and 2020 are as follows: Three Months Ended (In millions) Revenue Operating Income 2021– Risk and Insurance Services $ 3,225 (a) $ 1,060 Consulting 1,873 (b) 361 Total Operating Segments 5,098 1,421 Corporate/Eliminations (15) (63) Total Consolidated $ 5,083 $ 1,358 2020– Risk and Insurance Services $ 2,911 (a) $ 854 Consulting 1,762 (b) 282 Total Operating Segments 4,673 1,136 Corporate/Eliminations (22) (66) Total Consolidated $ 4,651 $ 1,070 (a) Includes interest income on fiduciary funds of $5 million and $23 million in 2021 and 2020, respectively. (b) Includes inter-segment revenue of $15 million and $21 million in 2021 and 2020, respectively. |
Details of Operating Segment Revenue | Details of operating segment revenue for the three-month period ended March 31, 2021 and 2020 are as follows: Three Months Ended (In millions) 2021 2020 Risk and Insurance Services Marsh $ 2,329 $ 2,076 Guy Carpenter 896 835 Total Risk and Insurance Services 3,225 2,911 Consulting Mercer 1,288 1,251 Oliver Wyman Group 585 511 Total Consulting 1,873 1,762 Total Operating Segments 5,098 4,673 Corporate / Eliminations (15) (22) Total $ 5,083 $ 4,651 |
Nature of Operations (Details)
Nature of Operations (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments (segment) | 2 |
Percentage of open offices | 70.00% |
Principles of Consolidation A_3
Principles of Consolidation And Other Matters (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Operating funds related to regulatory requirements or as collateral under captive insurance arrangements | $ 272,000,000 | $ 270,000,000 | |
Equity method investments lag period | 3 months | ||
Gain (loss) on investment income, net | $ 11,000,000 | $ (2,000,000) | |
Effective tax rate (as a percent) | 24.50% | 23.80% | |
Excess tax benefit related to share-based payments, percent | 1.10% | 2.60% | |
Unrecognized tax benefits | $ 96,000,000 | $ 98,000,000 | |
Minimum | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Reasonably possible decrease in unrecognized tax benefits | 0 | ||
Maximum | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Reasonably possible decrease in unrecognized tax benefits | $ 35,000,000 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 5,083 | $ 4,651 |
Risk and Insurance Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,225 | 2,911 |
Fiduciary interest income | 5 | 23 |
Risk and Insurance Services Segment | Total International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,201 | 1,083 |
Risk and Insurance Services Segment | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 837 | 754 |
Risk and Insurance Services Segment | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 274 | 238 |
Risk and Insurance Services Segment | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 90 | 91 |
Risk and Insurance Services Segment | U.S./Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,124 | 978 |
Consulting Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,873 | 1,762 |
Consulting Segment | Wealth | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 623 | 592 |
Consulting Segment | Health | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 487 | 486 |
Consulting Segment | Career | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 178 | 173 |
Marsh & Guy Carpenter | Risk and Insurance Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,220 | 2,888 |
Marsh Insurance Group | Risk and Insurance Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,325 | 2,061 |
Guy Carpenter Reinsurance Group | Risk and Insurance Services Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 895 | 827 |
Mercer Consulting Group | Consulting Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,288 | 1,251 |
Oliver Wyman Group Consulting Group | Consulting Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 585 | $ 511 |
Revenue - Contract Assets and C
Revenue - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract Assets | $ 304 | $ 236 |
Contract Liabilities | $ 737 | $ 676 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue recognized that was included in the contract liability balance at the beginning of the period | $ 238 | $ 289 |
Performance obligation satisfied in previous period | 34 | $ 29 |
Marsh Insurance Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, remaining performance obligation | 40 | |
Mercer Consulting Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, remaining performance obligation | 169 | |
Oliver Wyman Group Consulting Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, remaining performance obligation | $ 2 |
Revenue - Estimated Revenue Exp
Revenue - Estimated Revenue Expected to Be Recognized Related to Performance Obligations (Details) $ in Millions | Mar. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 102 |
Revenue, remaining performance obligation, expected timing of satisfaction, period (in years) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 72 |
Revenue, remaining performance obligation, expected timing of satisfaction, period (in years) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 29 |
Revenue, remaining performance obligation, expected timing of satisfaction, period (in years) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 5 |
Revenue, remaining performance obligation, expected timing of satisfaction, period (in years) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 3 |
Revenue, remaining performance obligation, expected timing of satisfaction, period (in years) |
Fiduciary Assets and Liabilit_2
Fiduciary Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Fiduciary Assets and Liabilities [Line Items] | |||
Net uncollected premiums and claims receivable and payable | $ 12,500 | $ 11,200 | |
Risk and Insurance Services Segment | |||
Fiduciary Assets and Liabilities [Line Items] | |||
Interest on fiduciary funds | 5 | $ 23 | |
Operating Segments | Risk and Insurance Services Segment | |||
Fiduciary Assets and Liabilities [Line Items] | |||
Interest on fiduciary funds | $ 5 | $ 23 |
Per Share Data (Basic and Dilut
Per Share Data (Basic and Diluted EPS Calculation Continuing Operations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income before non-controlling interests | $ 998 | $ 767 |
Less: Net income attributable to non-controlling interests | 15 | 13 |
Net income attributable to the Company | $ 983 | $ 754 |
Basic weighted average common shares outstanding (in shares) | 509 | 505 |
Dilutive effect of potentially issuable common shares (in shares) | 5 | 5 |
Diluted weighted average common shares outstanding (in shares) | 514 | 510 |
Average stock price used to calculate common stock equivalents (in dollars per share) | $ 114.96 | $ 107.10 |
Supplemental Disclosures to t_3
Supplemental Disclosures to the Consolidated Statements of Cash Flows (Additional Information Concerning Acquisitions, Interest And Income Taxes Paid) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | ||
Assets acquired, excluding cash | $ 0 | $ 249 |
Liabilities assumed | 0 | (5) |
Contingent/deferred purchase consideration | 0 | (44) |
Net cash outflow for current year acquisitions | 0 | 200 |
Interest paid | 191 | 199 |
Income taxes paid, net of refunds | $ 122 | $ 136 |
Supplemental Disclosures to t_4
Supplemental Disclosures to the Consolidated Statements of Cash Flows (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | ||
Deferred and contingent consideration from prior years acquisition | $ 37 | $ 29 |
Deferred purchase consideration from prior years' acquisitions | 27 | 25 |
Contingent consideration from prior year's acquisitions | 10 | 4 |
Contingent consideration from prior year's dispositions | 5 | |
Payment of contingent consideration | 1 | 9 |
Credit adjustment related to contingent consideration liabilities | 1 | |
Non-cash issuance of common stock | 212 | 201 |
Stock-based compensation expense, equity awards | $ 78 | $ 72 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Schedule of Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | $ 9,260 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (127) | $ (821) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 40 | 29 |
Other comprehensive loss, net of tax | (87) | (792) |
Balance, end of period | 9,596 | 7,451 |
AOCI Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (5,110) | (5,055) |
Other comprehensive loss, net of tax | (87) | (792) |
Balance, end of period | (5,197) | (5,847) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (4,126) | (3,512) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (36) | 109 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 40 | 29 |
Other comprehensive loss, net of tax | 4 | 138 |
Balance, end of period | (4,122) | (3,374) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (984) | (1,543) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (91) | (930) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 |
Other comprehensive loss, net of tax | (91) | (930) |
Balance, end of period | $ (1,075) | $ (2,473) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) (Schedule Of Components Of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Foreign currency translation adjustments, Pre-Tax | $ (91) | $ (941) |
Foreign currency translation adjustments, Tax | 0 | (11) |
Foreign currency translation adjustments, Net of Tax | (91) | (930) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | ||
Net actuarial loss, Pre-Tax | 52 | 40 |
Net actuarial loss, Tax | 12 | 11 |
Net actuarial loss, Net of Tax | 40 | 29 |
Subtotal, Pre-Tax | 52 | 40 |
Subtotal, Tax | 12 | 11 |
Subtotal, Net of Tax | 40 | 29 |
Foreign currency translation adjustment, Pre-Tax | (37) | 135 |
Foreign currency translation adjustment, Tax | (8) | 26 |
Foreign currency translation adjustment, Net of Tax | (29) | 109 |
Other adjustments, Pre-Tax | (7) | 0 |
Other adjustments, Tax | (2) | 0 |
Other adjustments, Net of Tax | (5) | 0 |
Effect of remeasurement, Pre-tax | (2) | 0 |
Effect of remeasurement, Tax | 0 | 0 |
Effect of remeasurement, Net of Tax | (2) | 0 |
Gain related to pension/post-retirement plans | 6 | 175 |
Pension/post-retirement plans gains, Tax | 2 | 37 |
Pension/post-retirement plans gains, Net of Tax | 4 | 138 |
Other comprehensive loss, before tax | (85) | (766) |
Other comprehensive (loss) income, Tax | 2 | 26 |
Other comprehensive loss, net of tax | $ (87) | $ (792) |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)acquisition | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)acquisition | |
Business Acquisition [Line Items] | |||
Deferred purchase consideration from prior years' acquisitions | $ 27 | $ 25 | |
Contingent consideration from prior year's acquisitions | 10 | 4 | |
Disposal group, consideration | 0 | ||
Total consideration | 245 | ||
Cash paid | 201 | ||
Contingent and deferred consideration | 0 | 44 | |
Revenue related to acquisitions | 15 | ||
Operating (loss) income related to acquisitions | 4 | ||
Prior Fiscal Periods Acquisitions | |||
Business Acquisition [Line Items] | |||
Deferred purchase consideration from prior years' acquisitions | 27 | 25 | |
Contingent consideration from prior year's acquisitions | $ 11 | $ 13 | |
Risk and Insurance Services Segment | |||
Business Acquisition [Line Items] | |||
Number of acquisitions made (in acquisitions) | acquisition | 0 | 7 | |
Minimum | |||
Business Acquisition [Line Items] | |||
Revenue target period (in years) | 2 years | 2 years | |
Maximum | |||
Business Acquisition [Line Items] | |||
Revenue target period (in years) | 4 years | 4 years | |
Certain Businesses Primarily in the U.S., U.K. and Canada | |||
Business Acquisition [Line Items] | |||
Disposal group, consideration | $ 98 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions (Pro-Forma Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Combinations [Abstract] | ||
Revenue | $ 5,083 | $ 4,705 |
Net income attributable to the Company | $ 983 | $ 755 |
Basic net income per share attributable to the Company (in dollars per share) | $ 1.93 | $ 1.50 |
Diluted net income per share attributable to the Company (in dollars per share) | $ 1.91 | $ 1.48 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill [Roll Forward] | ||
Balance as of January 1, | $ 15,517 | $ 14,671 |
Goodwill acquired | 0 | 142 |
Other adjustments | (59) | (401) |
Balance at March 31, | $ 15,458 | $ 14,412 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 15,458 | $ 14,412 | $ 15,517 | $ 14,671 |
Aggregate amortization expense | 100 | $ 86 | ||
Risk and Insurance Services Segment | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 11,700 | |||
Consulting Segment | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 3,800 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles (Amortized Intangible Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | $ 4,104 | $ 4,099 |
Accumulated Amortization | 1,501 | 1,400 |
Net Carrying Amount | 2,603 | 2,699 |
Client Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 3,717 | 3,713 |
Accumulated Amortization | 1,260 | 1,170 |
Net Carrying Amount | 2,457 | 2,543 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 387 | 386 |
Accumulated Amortization | 241 | 230 |
Net Carrying Amount | $ 146 | $ 156 |
Goodwill And Other Intangible_5
Goodwill And Other Intangibles (Estimated Future Aggregate Amortization Expense) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 (excludes amortization through March 31, 2021) | $ 258 | |
2022 | 318 | |
2023 | 293 | |
2024 | 276 | |
2025 | 238 | |
Subsequent years | 1,220 | |
Net Carrying Amount | $ 2,603 | $ 2,699 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
May 31, 2020 | Feb. 29, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Carrying value of investment | $ 289 | $ 280 | |||
Equity securities | 74 | 72 | |||
Equity investments without readily determinable market value | $ 33 | $ 33 | |||
Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Revenue target period (in years) | 2 years | 2 years | |||
Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Revenue target period (in years) | 4 years | 4 years | |||
Private Insurance and Consulting | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Carrying value of investment | $ 172 | $ 169 | |||
Private Equity Funds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Carrying value of investment | 117 | 111 | |||
Equity method income (loss) | 10 | $ (1) | |||
Alexander Forbes Group Holdings Limited | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investments, fair value | $ 55 | $ 54 | |||
Number of shares sold (shares) | 193 | 49 | |||
Money Market Funds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Share price (per share amount) | $ 1 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Financial instruments owned: | ||
Exchange traded equity securities | $ 74 | $ 72 |
Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Total assets measured at fair value | 382 | 908 |
Fiduciary Assets: | ||
Fiduciary assets | 241 | 323 |
Liabilities: | ||
Total liabilities measured at fair value | 233 | 243 |
Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Total assets measured at fair value | 308 | 832 |
Fiduciary Assets: | ||
Fiduciary assets | 241 | 323 |
Liabilities: | ||
Total liabilities measured at fair value | 0 | 0 |
Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Total assets measured at fair value | 8 | 8 |
Fiduciary Assets: | ||
Fiduciary assets | 0 | 0 |
Liabilities: | ||
Total liabilities measured at fair value | 0 | 0 |
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Total assets measured at fair value | 66 | 68 |
Fiduciary Assets: | ||
Fiduciary assets | 0 | 0 |
Liabilities: | ||
Total liabilities measured at fair value | 233 | 243 |
US Treasury Bills | Fair Value, Measurements, Recurring | ||
Fiduciary Assets: | ||
Fiduciary assets | 0 | 150 |
US Treasury Bills | Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fiduciary Assets: | ||
Fiduciary assets | 0 | 150 |
US Treasury Bills | Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fiduciary Assets: | ||
Fiduciary assets | 0 | 0 |
US Treasury Bills | Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fiduciary Assets: | ||
Fiduciary assets | 0 | 0 |
Money Market Funds | Fair Value, Measurements, Recurring | ||
Fiduciary Assets: | ||
Fiduciary assets | 241 | 173 |
Money Market Funds | Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fiduciary Assets: | ||
Fiduciary assets | 241 | 173 |
Money Market Funds | Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fiduciary Assets: | ||
Fiduciary assets | 0 | 0 |
Money Market Funds | Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fiduciary Assets: | ||
Fiduciary assets | 0 | 0 |
Other Assets | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Exchange traded equity securities | 60 | 59 |
Mutual funds | 183 | 186 |
Other equity investments | 8 | 8 |
Other Assets | Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Exchange traded equity securities | 60 | 59 |
Mutual funds | 183 | 186 |
Other equity investments | 0 | 0 |
Other Assets | Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Exchange traded equity securities | 0 | 0 |
Mutual funds | 0 | 0 |
Other equity investments | 8 | 8 |
Other Assets | Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Exchange traded equity securities | 0 | 0 |
Mutual funds | 0 | 0 |
Other equity investments | 0 | 0 |
Cash and Cash Equivalents | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Money market funds | 65 | 587 |
Cash and Cash Equivalents | Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Money market funds | 65 | 587 |
Cash and Cash Equivalents | Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Money market funds | 0 | 0 |
Cash and Cash Equivalents | Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Money market funds | 0 | 0 |
Other Receivables | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Contingent purchase consideration asset | 66 | 68 |
Other Receivables | Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Contingent purchase consideration asset | 0 | 0 |
Other Receivables | Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Contingent purchase consideration asset | 0 | 0 |
Other Receivables | Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Contingent purchase consideration asset | 66 | 68 |
Accounts Payable and Accrued Liabilities and Other Liabilities | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent purchase consideration liability | 233 | 243 |
Accounts Payable and Accrued Liabilities and Other Liabilities | Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent purchase consideration liability | 0 | 0 |
Accounts Payable and Accrued Liabilities and Other Liabilities | Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent purchase consideration liability | 0 | 0 |
Accounts Payable and Accrued Liabilities and Other Liabilities | Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent purchase consideration liability | $ 233 | $ 243 |
Fair Value Measurements (Change
Fair Value Measurements (Changes In Fair Value Of Level 3 Liabilities Representing Acquisition Related Contingent Consideration) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Revaluation Impact | $ 1 | |
Contingent Consideration | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 243 | 225 |
Net Additions | 0 | 30 |
Payments | (11) | (13) |
Revaluation Impact | 1 | 1 |
Other | 0 | (4) |
Balance at March 31, | $ 233 | $ 239 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - 3 months ended Mar. 31, 2021 $ in Millions | USD ($) | EUR (€) |
Derivative [Line Items] | ||
Net investment hedge, threshold percentage of the equity balance | 80.00% | |
Decrease in net investment hedges | $ | $ 53 | |
Net Investment Hedging | ||
Derivative [Line Items] | ||
Derivative, notional amount | € | € 1,100,000,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract (years) | 10 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract (years) | 25 years |
Office Space | |
Lessee, Lease, Description [Line Items] | |
Lease obligations, percent | 99.00% |
Leases (Lease Cost and Addition
Leases (Lease Cost and Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 94 | $ 92 |
Short-term lease cost | 1 | 1 |
Variable lease cost | 37 | 37 |
Sublease income | (8) | (5) |
Net lease cost | 124 | 125 |
Operating cash outflows from operating leases | 99 | 103 |
Right of use assets obtained in exchange for new operating lease liabilities | $ 22 | $ 79 |
Real Estate Lease | ||
Lessee, Lease, Description [Line Items] | ||
Weighted-average remaining lease term | 8 years 3 months 18 days | 8 years 8 months 12 days |
Weighted-average discount rate | 2.93% | 3.06% |
Leases (Future Minimum Payments
Leases (Future Minimum Payments for Operating Leases) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Remainder of 2021 | $ 308 | |
2022 | 381 | |
2023 | 332 | |
2024 | 289 | |
2025 | 257 | |
2026 | 235 | |
Subsequent years | 678 | |
Total future lease payments | 2,480 | |
Less: Imputed interest | (288) | |
Total | 2,192 | |
Current lease liabilities | 342 | $ 342 |
Long-term lease liabilities | $ 1,850 | $ 1,924 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions by employer | $ 29 | ||
Estimated future employer contributions in current fiscal year | 100 | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, cost recognized | 39 | $ 37 | |
United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, cost recognized | $ 39 | $ 31 | |
United Kingdom | Non-U.S. Plans | Geographic Concentration Risk | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Concentration risk percentage | 81.00% | ||
Equity Funds | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation, percentage | 64.00% | ||
Actual asset allocation percentage of equity | 65.00% | ||
Equity Funds | United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation, percentage | 28.00% | ||
Actual asset allocation percentage of equity | 30.00% | ||
Fixed Income Funds | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation, percentage | 36.00% | ||
Actual asset allocation percentage of equity | 35.00% | ||
Fixed Income Funds | United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation, percentage | 72.00% | ||
Actual asset allocation percentage of equity | 70.00% |
Retirement Benefits (Schedule O
Retirement Benefits (Schedule Of Defined Benefit Plan Net Periodic Benefit Cost Combined U.S. and Significant Non-U.S. Plans) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 10 | $ 8 |
Interest cost | 85 | 106 |
Expected return on plan assets | (208) | (210) |
Amortization of prior service (credit) cost | 0 | 0 |
Recognized actuarial loss (credit) | 52 | 40 |
Net periodic benefit credit | (61) | (56) |
Total (credit) cost | (61) | (56) |
Pension Benefits | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 46 | 53 |
Expected return on plan assets | (82) | (86) |
Recognized actuarial loss (credit) | 23 | 18 |
Net periodic benefit credit | (13) | (15) |
Pension Benefits | Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 10 | 8 |
Interest cost | 39 | 53 |
Expected return on plan assets | (126) | (124) |
Amortization of prior service (credit) cost | 0 | 0 |
Recognized actuarial loss (credit) | 29 | 22 |
Net periodic benefit credit | (48) | (41) |
Post-retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 0 | 1 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service (credit) cost | (1) | (1) |
Recognized actuarial loss (credit) | 1 | 0 |
Net periodic benefit credit | 0 | 0 |
Total (credit) cost | 0 | 0 |
Post-retirement Benefits | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 0 | 0 |
Expected return on plan assets | 0 | 0 |
Recognized actuarial loss (credit) | 0 | 0 |
Net periodic benefit credit | 0 | 0 |
Post-retirement Benefits | Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 0 | 1 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service (credit) cost | (1) | (1) |
Recognized actuarial loss (credit) | 1 | 0 |
Net periodic benefit credit | $ 0 | $ 0 |
Retirement Benefits (Schedule_2
Retirement Benefits (Schedule Of Defined Benefit Plan Net Periodic Benefit Cost Amounts Recorded in Consolidated Statement of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Compensation and benefits expense (Operating income) | $ (1,358) | $ (1,070) |
Other net benefit (credits) cost | (71) | (64) |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Compensation and benefits expense (Operating income) | 10 | 8 |
Other net benefit (credits) cost | (71) | (64) |
Total (credit) cost | (61) | (56) |
Post-retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Compensation and benefits expense (Operating income) | 0 | 0 |
Other net benefit (credits) cost | 0 | 0 |
Total (credit) cost | $ 0 | $ 0 |
Retirement Benefits (Schedule_3
Retirement Benefits (Schedule Of Defined Benefit Plan Weighted Average Assumption Used In Calculating Net Periodic Benefit Cost) (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pension Benefits | ||
Weighted average assumptions: | ||
Expected return on plan assets | 4.72% | 5.31% |
Discount rate | 1.92% | 2.57% |
Rate of compensation increase | 1.85% | 1.76% |
Post-retirement Benefits | ||
Weighted average assumptions: | ||
Expected return on plan assets | 0.00% | 0.00% |
Discount rate | 2.42% | 2.72% |
Rate of compensation increase | 0.00% | 0.00% |
Debt (Schedule Of Outstanding D
Debt (Schedule Of Outstanding Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 1,015 | $ 517 |
Short-term debt | 1,015 | 517 |
Long-term debt | 11,257 | 11,313 |
Long-term debt, net | 10,242 | 10,796 |
4.80% Senior Debt Obligations Due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 500 | 500 |
Interest rate | 4.80% | |
2.75% Senior Debt Obligations Due 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 499 | 499 |
Interest rate | 2.75% | |
3.30% Senior Debt Obligations Due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 349 | 349 |
Interest rate | 3.30% | |
4.05% Senior Debt Obligations Due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 249 | 249 |
Interest rate | 4.05% | |
3.50% Senior Debt Obligations Due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 598 | 598 |
Interest rate | 3.50% | |
3.875% Senior Debt Obligations Due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 995 | 995 |
Interest rate | 3.875% | |
3.50% Senior Debt Obligations Due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 498 | 498 |
Interest rate | 3.50% | |
1.349% Senior Debt Obligations Due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 650 | 677 |
Interest rate | 1.349% | |
3.75% Senior Debt Obligations Due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 598 | 597 |
Interest rate | 3.75% | |
4.375% Senior Debt Obligations Due 2029 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,499 | 1,499 |
Interest rate | 4.375% | |
1.979% Senior Debt Obligations Due 2030 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 638 | 664 |
Interest rate | 1.979% | |
2.250% Senior Debt Obligations Due 2030 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 738 | 737 |
Interest rate | 2.25% | |
5.875% Senior Debt Obligations Due 2033 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 298 | 298 |
Interest rate | 5.875% | |
4.75% Senior Debt Obligations Due 2039 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 495 | 495 |
Interest rate | 4.75% | |
4.35% Senior Debt Obligation Due 2047 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 493 | 493 |
Interest rate | 4.35% | |
4.20% Senior Debt Obligations Due 2048 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 592 | 592 |
Interest rate | 4.20% | |
4.90% Senior Debt Obligations Due 2049 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,237 | 1,237 |
Interest rate | 4.90% | |
5.70% Mortgage Due 2035 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 327 | 331 |
Interest rate | 5.70% | |
Other | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 4 | $ 5 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Apr. 15, 2021 | Apr. 02, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Jan. 31, 2020 | Oct. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Apr. 09, 2021 | Apr. 08, 2021 | May 31, 2020 |
Debt Instrument [Line Items] | ||||||||||||
Commercial paper outstanding | $ 0 | |||||||||||
Proceeds from lines of credit | 0 | $ 2,000,000,000 | ||||||||||
Other Debt Facilities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term line of credit | $ 0 | 0 | ||||||||||
Debt instrument, unused borrowing capacity | 573,000,000 | $ 517,000,000 | ||||||||||
2.250% Senior Debt Obligations Due 2030 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 2.25% | |||||||||||
Commercial Paper | Subsequent Event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Short-term debt | $ 2,000,000,000 | $ 1,500,000,000 | ||||||||||
Revolving Credit Facility | New Facility | Subsequent Event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt facilities, maximum borrowing capacity | $ 2,800,000,000 | |||||||||||
Term of debt | 5 years | |||||||||||
Revolving Credit Facility | Old Facility and 364-day Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term line of credit | $ 0 | |||||||||||
Revolving Credit Facility | Old Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt facilities, maximum borrowing capacity | $ 1,800,000,000 | |||||||||||
Term of debt | 5 years | |||||||||||
Revolving Credit Facility | 364-day Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt facilities, maximum borrowing capacity | $ 1,000,000,000 | |||||||||||
Term of debt | 364 days | |||||||||||
Term Loan Facility | $500 Million One-Year Term Loan and $500 Million Two-Year Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from lines of credit | $ 1,000,000,000 | |||||||||||
Term Loan Facility | $500 Million One-Year Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt facilities, maximum borrowing capacity | $ 500,000,000 | |||||||||||
Term of debt | 1 year | |||||||||||
Term Loan Facility | $500 Million Two-Year Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt facilities, maximum borrowing capacity | $ 500,000,000 | |||||||||||
Term of debt | 2 years | |||||||||||
Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of debt | 700,000,000 | $ 500,000,000 | ||||||||||
Senior Notes | Subsequent Event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of debt | $ 500,000,000 | |||||||||||
Senior Notes | 2.250% Senior Debt Obligations Due 2030 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument face amount | $ 750,000,000 | |||||||||||
Floating Rate Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of debt | $ 300,000,000 |
Debt (Estimated Fair Value of S
Debt (Estimated Fair Value of Significant Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt | $ 1,015 | $ 517 |
Long-term debt | 10,242 | 10,796 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt | 1,026 | 523 |
Long-term debt | $ 11,555 | $ 12,858 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | $ 11 | $ 89 | |
Severance and Future Rent | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | 11 | ||
Jardine Lloyd Thompson Group plc | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | 23 | $ 251 | |
Jardine Lloyd Thompson Group plc | Acquisition related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, cost incurred to date | 609 | ||
Costs incurred | 23 | $ 80 | |
Jardine Lloyd Thompson Group plc | Acquisition related | Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | 1 | ||
Jardine Lloyd Thompson Group plc | Acquisition related | Risk and Insurance Services Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | 16 | ||
Jardine Lloyd Thompson Group plc | Acquisition related | Consulting Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | $ 6 |
Restructuring Costs (Restructur
Restructuring Costs (Restructuring Activities) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | $ 81 | $ 102 |
Amounts Accrued | 11 | 89 |
Cash Paid | (28) | (100) |
Non-Cash/Other | 0 | (10) |
Liability at end of period | 64 | 81 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | 36 | 51 |
Amounts Accrued | 5 | 39 |
Cash Paid | (20) | (54) |
Non-Cash/Other | 0 | 0 |
Liability at end of period | 21 | 36 |
Future rent under non-cancelable leases and other costs | ||
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | 45 | 51 |
Amounts Accrued | 6 | 50 |
Cash Paid | (8) | (46) |
Non-Cash/Other | 0 | (10) |
Liability at end of period | 43 | 45 |
Jardine Lloyd Thompson Group plc | ||
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | 25 | 47 |
Amounts Accrued | 23 | 251 |
Cash Paid | (26) | (226) |
Non-cash charges | (4) | (47) |
Liability at end of period | 18 | 25 |
Jardine Lloyd Thompson Group plc | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | 16 | 42 |
Amounts Accrued | 2 | 43 |
Cash Paid | (10) | (69) |
Non-cash charges | 0 | 0 |
Liability at end of period | 8 | 16 |
Jardine Lloyd Thompson Group plc | Real estate related costs | ||
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | 7 | 5 |
Amounts Accrued | 6 | 69 |
Cash Paid | (2) | (25) |
Non-cash charges | (4) | (42) |
Liability at end of period | 7 | 7 |
Jardine Lloyd Thompson Group plc | Information Technology | ||
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | 2 | 0 |
Amounts Accrued | 7 | 62 |
Cash Paid | (7) | (55) |
Non-cash charges | 0 | (5) |
Liability at end of period | 2 | 2 |
Jardine Lloyd Thompson Group plc | Consulting and other outside services | ||
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | 0 | 0 |
Amounts Accrued | 8 | 77 |
Cash Paid | (7) | (77) |
Non-cash charges | 0 | 0 |
Liability at end of period | $ 1 | $ 0 |
Common Stock (Details)
Common Stock (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Nov. 30, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||
Common stock repurchased (in shares) | 0 | ||
Payments for repurchase of equity | $ 119,000,000 | ||
Payments for repurchase of common stock | $ 112,000,000 | $ 0 | |
Stock-based compensation, shares issued during period (in shares) | 2,000,000 | 2,300,000 | |
Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Common stock repurchased (in shares) | 1,000,000 | ||
Share repurchases program, authorized amount (up to) | $ 2,500,000,000 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 2,300,000,000 |
Claims, Lawsuits And Other Co_2
Claims, Lawsuits And Other Contingencies (Details) - Jardine Lloyd Thompson Group plc case in Thousands, £ in Millions, $ in Millions | 48 Months Ended | ||||||
Dec. 31, 2018case | Mar. 31, 2021GBP (£) | Mar. 31, 2021USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020USD ($) | Feb. 28, 2019GBP (£) | Feb. 28, 2019USD ($) | |
Loss Contingencies [Line Items] | |||||||
Individual cases analyzed | 14 | ||||||
Loss contingency accrual | £ 134 | $ 185 | £ 155 | $ 210 | £ 59 | $ 77 |
Segment Information (Selected I
Segment Information (Selected Information And Details For MMC's Operating Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 5,083 | $ 4,651 |
Operating Income (Loss) | 1,358 | 1,070 |
Risk and Insurance Services Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue | 3,225 | 2,911 |
Interest on fiduciary funds | 5 | 23 |
Consulting Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,873 | 1,762 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 5,098 | 4,673 |
Operating Income (Loss) | 1,421 | 1,136 |
Operating Segments | Risk and Insurance Services Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue | 3,225 | 2,911 |
Operating Income (Loss) | 1,060 | 854 |
Interest on fiduciary funds | 5 | 23 |
Operating Segments | Consulting Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,873 | 1,762 |
Operating Income (Loss) | 361 | 282 |
Corporate/Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | (15) | (22) |
Operating Income (Loss) | (63) | (66) |
Intersegment Eliminations | Consulting Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 15 | $ 21 |
Segment Information (Details of
Segment Information (Details of Operating Segment Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 5,083 | $ 4,651 |
Risk and Insurance Services Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue | 3,225 | 2,911 |
Risk and Insurance Services Segment | Marsh Insurance Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,325 | 2,061 |
Risk and Insurance Services Segment | Guy Carpenter Reinsurance Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 895 | 827 |
Consulting Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,873 | 1,762 |
Consulting Segment | Mercer Consulting Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,288 | 1,251 |
Consulting Segment | Oliver Wyman Group Consulting Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 585 | 511 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 5,098 | 4,673 |
Operating Segments | Risk and Insurance Services Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue | 3,225 | 2,911 |
Operating Segments | Risk and Insurance Services Segment | Marsh Insurance Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,329 | 2,076 |
Operating Segments | Risk and Insurance Services Segment | Guy Carpenter Reinsurance Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 896 | 835 |
Operating Segments | Consulting Segment | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,873 | 1,762 |
Operating Segments | Consulting Segment | Mercer Consulting Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,288 | 1,251 |
Operating Segments | Consulting Segment | Oliver Wyman Group Consulting Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 585 | 511 |
Corporate/Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ (15) | $ (22) |