Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 17, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 $1.00 per share | |
Trading Symbol | MMC | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 496,009,506 | |
Entity Central Index Key | 0000062709 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
New York Stock Exchange | ||
Entity Information [Line Items] | ||
Security Exchange Name | NYSE | |
Chicago Stock Exchange | ||
Entity Information [Line Items] | ||
Security Exchange Name | CHX |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 4,770 | $ 4,583 | $ 15,698 | $ 14,683 |
Expense: | ||||
Compensation and benefits | 2,923 | 2,853 | 9,033 | 8,520 |
Other operating expenses | 1,056 | 990 | 3,065 | 2,837 |
Operating expenses | 3,979 | 3,843 | 12,098 | 11,357 |
Operating income | 791 | 740 | 3,600 | 3,326 |
Other net benefit credits | 57 | 69 | 178 | 211 |
Interest income | 4 | 1 | 6 | 2 |
Interest expense | (118) | (107) | (342) | (335) |
Investment (loss) income | (1) | 13 | 27 | 43 |
Income before income taxes | 733 | 716 | 3,469 | 3,247 |
Income tax expense | 181 | 174 | 853 | 880 |
Net income before non-controlling interests | 552 | 542 | 2,616 | 2,367 |
Less: Net income attributable to non-controlling interests | 6 | 5 | 32 | 27 |
Net income attributable to the Company | $ 546 | $ 537 | $ 2,584 | $ 2,340 |
Net income per share attributable to the Company: | ||||
Basic (usd per share) | $ 1.10 | $ 1.06 | $ 5.16 | $ 4.61 |
Diluted (usd per share) | $ 1.08 | $ 1.05 | $ 5.11 | $ 4.56 |
Average number of shares outstanding: | ||||
Basic (in shares) | 498 | 506 | 501 | 508 |
Diluted (in shares) | 503 | 513 | 506 | 513 |
Shares outstanding (in shares) | 497 | 505 | 497 | 505 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income before non-controlling interests | $ 552 | $ 542 | $ 2,616 | $ 2,367 |
Other comprehensive (loss) income, before tax: | ||||
Foreign currency translation adjustments | (895) | (346) | (1,928) | (413) |
Gain related to pension/post-retirement plans | 281 | 204 | 603 | 234 |
Other comprehensive loss, before tax | (614) | (142) | (1,325) | (179) |
Income tax expense on other comprehensive loss | 71 | 50 | 148 | 56 |
Other comprehensive loss, net of tax | (685) | (192) | (1,473) | (235) |
Comprehensive (loss) income | (133) | 350 | 1,143 | 2,132 |
Less: comprehensive income attributable to non-controlling interest | 6 | 5 | 32 | 27 |
Comprehensive (loss) income attributable to the Company | $ (139) | $ 345 | $ 1,111 | $ 2,105 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 802 | $ 1,752 |
Receivables | ||
Commissions and fees | 5,312 | 5,093 |
Advanced premiums and claims | 144 | 136 |
Other | 527 | 523 |
Gross receivables | 5,983 | 5,752 |
Less-allowance for credit losses | (164) | (166) |
Net receivables | 5,819 | 5,586 |
Other current assets | 953 | 926 |
Total current assets | 7,574 | 8,264 |
Goodwill | 15,576 | 16,317 |
Other intangible assets | 2,403 | 2,810 |
Fixed assets (net of accumulated depreciation and amortization of $1,650 at September 30, 2022 and $1,589 at December 31, 2021) | 865 | 847 |
Pension related assets | 2,074 | 2,270 |
Right of use assets | 1,615 | 1,868 |
Deferred tax assets | 533 | 551 |
Other assets | 1,383 | 1,461 |
Total assets | 32,023 | 34,388 |
Current liabilities: | ||
Short-term debt | 967 | 17 |
Accounts payable and accrued liabilities | 2,903 | 3,165 |
Accrued compensation and employee benefits | 2,396 | 2,942 |
Current lease liabilities | 298 | 332 |
Accrued income taxes | 432 | 198 |
Dividends payable | 296 | 0 |
Total current liabilities | 7,292 | 6,654 |
Fiduciary liabilities | 10,608 | 9,622 |
Less – cash and cash equivalents held in a fiduciary capacity | (10,608) | (9,622) |
Net fiduciary liabilities | 0 | 0 |
Long-term debt | 10,399 | 10,933 |
Pension, post-retirement and post-employment benefits | 1,309 | 1,632 |
Long-term lease liabilities | 1,620 | 1,880 |
Liabilities for errors and omissions | 331 | 355 |
Other liabilities | 1,281 | 1,712 |
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 September 30, 2022 and December 31, 2021 | 561 | 561 |
Additional paid-in capital | 1,111 | 1,112 |
Retained earnings | 19,837 | 18,389 |
Accumulated other comprehensive loss | (6,048) | (4,575) |
Non-controlling interests | 226 | 213 |
Stockholders' equity before treasury stock | 15,687 | 15,700 |
Less – treasury shares, at cost, 64,102,660 shares at September 30, 2022 and 57,105,619 shares at December 31, 2021 | (5,896) | (4,478) |
Total equity | 9,791 | 11,222 |
Total liabilities and stockholders' equity | $ 32,023 | $ 34,388 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed assets, accumulated depreciation and amortization | $ 1,650 | $ 1,589 |
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 | 64,102,660 | 57,105,619 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating cash flows: | ||
Net income before non-controlling interests | $ 2,616 | $ 2,367 |
Adjustments to reconcile net income provided by operations: | ||
Depreciation and amortization of fixed assets and capitalized software | 259 | 291 |
Amortization of intangible assets | 258 | 278 |
Non-cash lease expense | 223 | 241 |
Adjustments and payments related to contingent consideration assets and liabilities | 0 | (16) |
Deconsolidation of Russian businesses | 39 | 0 |
Net gain on investments | (27) | (43) |
Net gain on disposition of assets | (112) | (37) |
Share-based compensation expense | 283 | 263 |
Changes in assets and liabilities: | ||
Net receivables | (745) | (604) |
Other assets | (14) | (276) |
Accrued compensation and employee benefits | (451) | (20) |
Provision for taxes, net of payments and refunds | 156 | 196 |
Contributions to pension and other benefit plans in excess of current year credit | (306) | (282) |
Other liabilities | 28 | (22) |
Operating lease liabilities | (244) | (262) |
Net cash provided by operations | 1,963 | 2,074 |
Financing cash flows: | ||
Purchase of treasury shares | (1,600) | (734) |
Net proceeds from issuance of commercial paper | 600 | 0 |
Repayments of debt | (14) | (512) |
Shares withheld for taxes on vested units – treasury shares | (194) | (99) |
Issuance of common stock from treasury shares | 89 | 115 |
Payments of deferred and contingent consideration for acquisitions | (144) | (110) |
Receipts of contingent consideration for dispositions | 3 | 71 |
Distributions of non-controlling interests | (20) | (27) |
Dividends paid | (840) | (750) |
Change in fiduciary liabilities | 2,148 | 1,919 |
Net cash provided by (used for) financing activities | 28 | (127) |
Investing cash flows: | ||
Capital expenditures | (367) | (268) |
Purchases of long term investments | (19) | (28) |
Sales of long term investments | 84 | 30 |
Dispositions | 138 | 84 |
Acquisitions, net of cash and cash held in a fiduciary capacity acquired | (213) | (384) |
Other, net | 14 | (6) |
Net cash used for investing activities | (363) | (572) |
Effect of exchange rate changes on cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity | (1,592) | (243) |
Increase in cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity | 36 | 1,132 |
Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at beginning of period | 11,374 | 10,674 |
Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at end of period | 11,410 | 11,806 |
Cash and cash equivalents | 802 | 1,398 |
Cash and cash equivalents held in a fiduciary capacity | 10,608 | 10,408 |
Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity | $ 11,410 | $ 11,806 |
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, 2020 | $ 561 | $ 943 | $ 16,272 | $ (5,110) | $ (3,562) | $ 156 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Change in accrued stock compensation costs | 41 | ||||||
Issuance of shares under stock compensation plans and employee stock purchase plans | 50 | 191 | |||||
Net income attributable to the Company | $ 2,367 | 2,340 | 27 | ||||
Dividend equivalents declared | (8) | ||||||
Dividends declared | (1,015) | ||||||
Other comprehensive (loss) income, net of tax | (235) | (235) | |||||
Purchase of treasury shares | (734) | (734) | |||||
Distributions and other changes | (29) | ||||||
Balance, end of period at Sep. 30, 2021 | $ 9,888 | 561 | 1,034 | 17,589 | (5,345) | (4,105) | 154 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared per share (in dollars per share) | $ 2 | ||||||
Balance, beginning of period at Jun. 30, 2021 | 561 | 945 | 17,597 | (5,153) | (3,842) | 156 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Change in accrued stock compensation costs | 89 | ||||||
Issuance of shares under stock compensation plans and employee stock purchase plans | 0 | 37 | |||||
Net income attributable to the Company | $ 542 | 537 | 5 | ||||
Dividend equivalents declared | (2) | ||||||
Dividends declared | (543) | ||||||
Other comprehensive (loss) income, net of tax | (192) | (192) | |||||
Purchase of treasury shares | (300) | ||||||
Distributions and other changes | (7) | ||||||
Balance, end of period at Sep. 30, 2021 | $ 9,888 | 561 | 1,034 | 17,589 | (5,345) | (4,105) | 154 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared per share (in dollars per share) | $ 1.070 | ||||||
Balance, beginning of period at Dec. 31, 2021 | $ 11,222 | 561 | 1,112 | 18,389 | (4,575) | (4,478) | 213 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Change in accrued stock compensation costs | (80) | ||||||
Issuance of shares under stock compensation plans and employee stock purchase plans | 79 | 182 | |||||
Net income attributable to the Company | 2,616 | 2,584 | 32 | ||||
Dividend equivalents declared | (10) | ||||||
Dividends declared | (1,126) | ||||||
Other comprehensive (loss) income, net of tax | (1,473) | (1,473) | |||||
Purchase of treasury shares | (1,600) | (1,600) | |||||
Distributions and other changes | (19) | ||||||
Balance, end of period at Sep. 30, 2022 | $ 9,791 | 561 | 1,111 | 19,837 | (6,048) | (5,896) | 226 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared per share (in dollars per share) | $ 2.250 | ||||||
Balance, beginning of period at Jun. 30, 2022 | 561 | 1,044 | 19,880 | (5,363) | (5,429) | 224 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Change in accrued stock compensation costs | 60 | ||||||
Issuance of shares under stock compensation plans and employee stock purchase plans | 7 | 33 | |||||
Net income attributable to the Company | $ 552 | 546 | 6 | ||||
Dividend equivalents declared | (3) | ||||||
Dividends declared | (586) | ||||||
Other comprehensive (loss) income, net of tax | (685) | (685) | |||||
Purchase of treasury shares | (500) | ||||||
Distributions and other changes | (4) | ||||||
Balance, end of period at Sep. 30, 2022 | $ 9,791 | $ 561 | $ 1,111 | $ 19,837 | $ (6,048) | $ (5,896) | $ 226 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared per share (in dollars per share) | $ 1.180 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Marsh & McLennan Companies, Inc. (the "Company"), 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 ("RIS") provides risk management solutions (risk advice, risk transfer and risk control and mitigation) as well as insurance and reinsurance broking and 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 provides data-driven risk advisory services and solutions to commercial and consumer clients. Guy Carpenter develops advanced risk, reinsurance and capital strategies that help clients grow profitably and identify and capitalize on emerging opportunities. The Company conducts business in its Consulting segment through Mercer and Oliver Wyman Group. Mercer delivers advice and solutions that help organizations create a dynamic world of work, shape retirement and investment outcomes, and unlock health and well being for a changing workforce. Oliver Wyman Group serves as critical strategic, economic and brand advisor to private sector and governmental clients. Deconsolidation of Russia On February 24, 2022, Russian forces launched a military invasion of Ukraine. In response, the United States, the European Union, United Kingdom and other governments have imposed significant economic sanctions on Russia, and Russia has responded with counter-sanctions. The war in Ukraine has disrupted international commerce and the global economy. In the first quarter of 2022, the Company concluded that it did not meet the accounting criteria for control over its wholly-owned Russian businesses due to the evolving trade and economic sanctions, and recorded a loss of $52 million on the deconsolidation of the Russian businesses and other related charges. In June 2022, the Company entered into a definitive agreement to exit its businesses in Russia and transfer ownership to local management pending regulatory approvals. Refer to Note 8, Acquisitions and Dispositions, for additional information on the deconsolidation of the Russian businesses. The Company continues to monitor the ongoing situation and its potential impact on our business, financial condition, results of operations and cash flows. Business Update related to COVID-19 |
Principles of Consolidation and
Principles of Consolidation and Other Matters | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021 (the "2021 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 nine months ended September 30, 2022 and 2021. 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: • 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; • the allowance for current expected credit losses on receivables; • useful lives assigned to long-lived assets, and depreciation and amortization; and • 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 the potential impact of macroeconomic factors including inflation, the war in Ukraine and COVID-19 to its customer base in various industries and geographies. Insurance exposures subject to variable factors are subject to mid-term and end of term adjustments, as well as policy audits, which may reduce premiums and corresponding commissions. Estimates were updated based on internal and industry specific economic data. 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 arrangements. At September 30, 2022, the Company maintained $295 million compared to $303 million at December 31, 2021 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 statements of income for the three and nine months ended September 30, 2022 and 2021, respectively. Investments The caption "Investment (loss) income" 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. Investments in private equity funds 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 its proportionate share of the change in fair value of the funds are recorded in earnings. Investments accounted for in accordance with the equity method of accounting are included in "other assets" in the consolidated balance sheets. The Company recorded a net investment loss of $1 million and investment income of $27 million for the three and nine months ended September 30, 2022, respectively, compared to investment income of $13 million and $43 million for the corresponding periods in the prior year. The decrease in 2022 reflects lower mark-to-market gains in the Company's private equity investments compared to the corresponding periods in the prior year. In the third quarter of 2022, the Company also recorded a net loss of $4 million from the sale of certain investments. Income Taxes The Company's effective tax rate for the three months ended September 30, 2022 was 24.6%, compared with 24.2% for the corresponding quarter of 2021. The effective tax rates for the nine months ended September 30, 2022 and 2021, were 24.6% and 27.1%, respectively. The tax rates in both periods reflect the impact of discrete tax matters such as excess tax benefits related to share-based compensation, enacted tax legislation, changes in uncertain tax positions, deferred tax adjustments and nontaxable adjustments related to contingent consideration for acquisitions. The rate in both periods also reflects tax benefits from planning that postponed the utilization of current year losses in the U.K. to a future year when the tax rate will be 25%. The excess tax benefit related to share-based payments is the most significant discrete item for the three and nine months ended September 30, 2022, reducing the effective tax rate by 0.9% and 1.2%, respectively. The reduction for both the three and nine months ended September 30, 2021 was 0.9%. The effective tax rate for the nine months ended September 30, 2021 reflects the charge related to re-measuring the Company’s U.K. deferred tax assets and liabilities upon the enactment of legislation increasing the U.K. corporate income tax rate from 19% to 25%, effective April 1, 2023. The Company recorded a net charge of $100 million in the second quarter of 2021, which reflected the re-measurement of the Company's U.K. deferred tax assets and liabilities upon enactment of the legislation. The re-measurement of the Company's U.K. deferred tax assets and liabilities was the most significant discrete item in the prior year, increasing the Company's effective tax rate by 3.1% for the nine month period ended September 30, 2021. On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was enacted into law. The Company is currently evaluating the provisions of the new legislation, the most significant of which are the corporate alternative minimum tax and the share repurchase tax. The Company does not expect the IRA to have a significant impact on its financial results of operations when it becomes effective on January 1, 2023. 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 limitations. 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 were $107 million at September 30, 2022, and $94 million at December 31, 2021. It is reasonably possible that the total amount of unrecognized tax benefits will decrease between zero and approximately $48 million within the next twelve months due to settlements of audits and expirations of statutes of limitations. 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 ("ROU") 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 ROU 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 ROU asset is determined based on the present value of the estimated net cash flows related to the property. Contractual costs outside of the ROU 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 reliant 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 | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | RevenueThe 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 this 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. Other revenue included in the consolidated statements of income that is not from contracts with customers is less than 2% of total revenue and is not presented as a separate line item. The Company's revenue policies are provided in more detail in Note 2, Revenue, in the Form 2021 10-K. The following table disaggregates components of the Company's revenue: Three Months Ended Nine Months Ended (In millions) 2022 2021 2022 2021 Marsh: EMEA $ 589 $ 600 $ 2,176 $ 2,233 Asia Pacific 312 281 1,015 902 Latin America 118 105 340 298 Total International 1,019 986 3,531 3,433 U.S./Canada 1,451 1,366 4,263 3,894 Total Marsh 2,470 2,352 7,794 7,327 Guy Carpenter 328 314 1,849 1,697 Subtotal 2,798 2,666 9,643 9,024 Fiduciary interest income 40 4 57 12 Total Risk and Insurance Services $ 2,838 $ 2,670 $ 9,700 $ 9,036 Mercer: Wealth $ 561 $ 613 $ 1,775 $ 1,861 Health 451 449 1,562 1,398 Career 272 253 679 618 Total Mercer 1,284 1,315 4,016 3,877 Oliver Wyman Group 667 610 2,029 1,813 Total Consulting $ 1,951 $ 1,925 $ 6,045 $ 5,690 The Company recognizes commission revenue 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 table provides contract assets and contract liabilities information from contracts with customers: (In millions) September 30, 2022 December 31, 2021 Contract assets $ 370 $ 290 Contract liabilities $ 783 $ 776 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. Estimated contingent insurer revenue related to the achievement of volume or loss ratio metrics cannot be billed or collected until all related policy placements are completed and the contingency is resolved. Contract assets are included in other current assets in the Company's consolidated balance sheets. Contract liabilities primarily relate to the advance consideration received from customers. Contract liabilities are included in current liabilities in the Company's consolidated balance sheets. Revenue recognized in the three and nine months ended September 30, 2022 that was included in the contract liability balance at the beginning of each of those periods was $75 million and $529 million, respectively, compared to revenue recognized of $131 million and $511 million for the corresponding periods in the prior year. The amount of revenue recognized in the three and nine months ended September 30, 2022 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 $13 million and $74 million, respectively, and $6 million and $68 million for the corresponding periods in the prior year. 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 $234 million, primarily related to Mercer. The Company expects revenue in 2023, 2024, 2025, 2026 and 2027 and beyond of $98 million, $66 million, $39 million, $21 million and $10 million, respectively, related to these performance obligations. |
Fiduciary Assets and Liabilitie
Fiduciary Assets and Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Fiduciary Assets And Liabilities [Abstract] | |
Fiduciary Assets and Liabilities | Fiduciary Assets and Liabilities In its capacity as an insurance broker or agent, generally 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. The Company's fiduciary assets primarily include bank or short term time deposits and liquid money market funds, and are classified as cash and cash equivalents. Risk and Insurance Services revenue includes interest on fiduciary funds of $40 million and $57 million for the three and nine months ended September 30, 2022, respectively, and $4 million and $12 million for the three and nine months ended September 30, 2021, respectively. Since cash and cash equivalents held in a fiduciary capacity 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 September 30, 2022, and $13.0 billion at December 31, 2021. 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. The Company, through its Mercer subsidiary, manages assets in trusts or funds for which Mercer’s management or trustee fee is not considered a variable interest, since the fees are commensurate with the level of effort required to provide those services. Mercer is not the primary beneficiary of these trusts or funds. Mercer’s maximum exposure to loss of its interests is, therefore, limited to collection of its fees. |
Per Share Data
Per Share Data | 9 Months Ended |
Sep. 30, 2022 | |
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 Nine Months Ended (In millions, except per share data) 2022 2021 2022 2021 Net income before non-controlling interests $ 552 $ 542 $ 2,616 $ 2,367 Less: Net income attributable to non-controlling interests 6 5 32 27 Net income attributable to the Company $ 546 $ 537 $ 2,584 $ 2,340 Basic weighted average common shares outstanding 498 506 501 508 Dilutive effect of potentially issuable common shares 5 7 5 5 Diluted weighted average common shares outstanding 503 513 506 513 Average stock price used to calculate common stock equivalents $ 160.14 $ 151.22 $ 159.35 $ 133.41 |
Supplemental Disclosures to the
Supplemental Disclosures to the Consolidated Statements of Cash Flows | 9 Months Ended |
Sep. 30, 2022 | |
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 table provides additional information concerning acquisitions, interest and income taxes paid for the nine month periods ended September 30, 2022 and 2021. (In millions) 2022 2021 Assets acquired, excluding cash, and cash and cash equivalents held in a fiduciary capacity $ 236 $ 601 Acquisition-related deposit 24 — Fiduciary liabilities assumed (2) (17) Liabilities assumed (28) (59) Contingent/deferred purchase consideration (17) (141) Net cash outflow for acquisitions $ 213 $ 384 (In millions) 2022 2021 Interest paid $ 388 $ 407 Income taxes paid, net of refunds $ 697 $ 686 The classification of contingent consideration in the consolidated statements of cash flows is dependent upon whether the receipt, payment or adjustment 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 operating and financing activities: For the Nine Months Ended September 30, (In millions) 2022 2021 Operating: Contingent consideration payments for prior year acquisitions $ (38) $ (46) Receipt of contingent consideration for dispositions — 19 Acquisition/disposition related net charges (credits) for adjustments 38 11 Adjustments and payments related to contingent consideration $ — $ (16) Financing: Contingent consideration for prior year acquisitions $ (28) $ (26) Deferred consideration related to prior year acquisitions (116) (84) Payments of deferred and contingent consideration for acquisitions $ (144) $ (110) Receipt of contingent consideration for dispositions $ 3 $ 71 The Company had non-cash issuances of common stock under its share-based payment plan of $366 million and $225 million for the nine months ended September 30, 2022 and 2021, respectively. The Company recorded share-based compensation expense related to restricted stock units, performance stock units and stock options of $89 million and $283 million for the three and nine months ended September 30, 2022, respectively, and $87 million and $263 million for the three and nine months ended September 30, 2021, respectively. Statement of Cash Flows Reclassifications |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2022 | |
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 and nine months ended September 30, 2022 and 2021, including amounts reclassified out of AOCI, are as follows: (In millions) Pension/Post-Retirement Plans Gains (Losses) Foreign Currency Translation Adjustments Total Balance as of July 1, 2022 $ (2,957) $ (2,406) $ (5,363) Other comprehensive income (loss) before reclassifications 182 (895) (713) Amounts reclassified from accumulated other comprehensive income 28 — 28 Net current period other comprehensive income (loss) 210 (895) (685) Balance as of September 30, 2022 $ (2,747) $ (3,301) $ (6,048) (In millions) Pension/Post-Retirement Plans Gains (Losses) Foreign Currency Translation Adjustments Total Balance as of July 1, 2021 $ (4,102) $ (1,051) $ (5,153) Other comprehensive income (loss) before reclassifications 115 (346) (231) Amounts reclassified from accumulated other comprehensive income 39 — 39 Net current period other comprehensive income (loss) 154 (346) (192) Balance as of September 30, 2021 $ (3,948) $ (1,397) $ (5,345) (In millions) Pension/Post-Retirement Plans Gains (Losses) Foreign Currency Translation Adjustments Total Balance as of December 31, 2021 $ (3,202) $ (1,373) $ (4,575) Other comprehensive income (loss) before reclassifications 371 (1,928) (1,557) Amounts reclassified from accumulated other comprehensive income 84 — 84 Net current period other comprehensive income (loss) 455 (1,928) (1,473) Balance as of September 30, 2022 $ (2,747) $ (3,301) $ (6,048) (In millions) Pension/Post-Retirement Plans Gains (Losses) Foreign Currency Translation Adjustments Total Balance as of December 31, 2020 $ (4,126) $ (984) $ (5,110) Other comprehensive income (loss) before reclassifications 63 (413) (350) Amounts reclassified from accumulated other comprehensive income 115 — 115 Net current period other comprehensive income (loss) 178 (413) (235) Balance as of September 30, 2021 $ (3,948) $ (1,397) $ (5,345) The components of other comprehensive (loss) income for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended September 30, 2022 2021 (In millions) Pre-Tax Tax (Credit) Net of Tax Pre-Tax Tax (Credit) Net of Tax Foreign currency translation adjustments $ (895) $ — $ (895) $ (346) $ — $ (346) Pension/post-retirement plans: Amortization of losses included in net periodic pension cost: Net actuarial losses (a) 37 9 28 52 13 39 Subtotal 37 9 28 52 13 39 Foreign currency translation adjustments 247 63 184 88 21 67 Effect of remeasurement (2) — (2) 64 16 48 Other adjustments (1) (1) — — — — Pension/post-retirement plans gains 281 71 210 204 50 154 Other comprehensive (loss) income $ (614) $ 71 $ (685) $ (142) $ 50 $ (192) (a) 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. Nine Months Ended September 30, 2022 2021 (In millions) Pre-Tax Tax (Credit) Net of Tax Pre-Tax Tax (Credit) Net of Tax Foreign currency translation adjustments $ (1,928) $ — $ (1,928) $ (413) $ — $ (413) Pension/post-retirement plans: Amortization of (gains) losses included in net periodic pension cost: Prior service credits (a) (1) — (1) (1) — (1) Net actuarial losses (a) 114 29 85 156 40 116 Subtotal 113 29 84 155 40 115 Foreign currency translation adjustments 499 123 376 7 1 6 Effect of remeasurement 8 1 7 77 17 60 Effect of settlement 2 — 2 2 — 2 Other adjustments (19) (5) (14) (7) (2) (5) Pension/post-retirement plans gains 603 148 455 234 56 178 Other comprehensive (loss) income $ (1,325) $ 148 $ (1,473) $ (179) $ 56 $ (235) (a) 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 | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions The 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 Risk and Insurance Services segment comp leted eight acqu isitions during the nine months ended September 30, 2022: • January – Marsh McLennan Agency ("MMA") acquired Heil & Kay Insurance Agency Inc., an Illinois-based full-service broker providing business insurance, employee health benefits services and personal lines insurance. • April – Marsh acquired the business of Regional Treaty Services Corporation, a Rhode Island-based managing general underwriter, which manages reinsurance facilities for small to midsize U.S.-based insurers primarily writing personal lines, small agriculture, and main street commercial business. • June – MMA acquired Clark Insurance, a Maine-based, full-service broker providing business insurance, employee health and benefits and private client services to businesses and individuals across the region. • July – MMA acquired CS Insurance Strategies, Inc., an Illinois-based full-service broker providing employee health and benefits, business insurance, and risk management consulting services to organizations of all sizes across the U.S. and Suchanek Partners LLC, an Ohio-based employee benefits insurance broker. • August – Marsh acquired Best Insurance Co. Ltd, a Japan-based insurance broker that provides affinity type schemes, general and personal lines insurance. • September – MMA acquired Steinberg & Associates, Inc., a South Carolina-based insurance broker that primarily offers employee health benefit services to group clients and Leykell, Inc., a Texas-based full-service broker that provides specialty insurance focused on trade credit. The Consulting segment completed three acquisitions during the nine months ended September 30, 2022: • February – Oliver Wyman acquired Azure Consulting, an Australia-based management consulting firm with expertise in strategy development, organizational design and operations in the industrials, energy and natural resources sectors. • March – Mercer acquired GeFi Assurances, a France-based brokerage and consulting firm specializing in collective corporate social protection. • September – Oliver Wyman acquired Booz Allen Hamilton's strategy consulting business serving the Middle East and North Africa. Total purchase consideration for acquisitions made during the nine months ended September 30, 2022 was $227 million, which consisted of cash paid of $210 million and deferred purchase consideration and estimated contingent consideration of $17 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 following table presents the preliminary allocation of purchase consideration to the assets acquired and liabilities assumed during 2022, based on the estimated fair values for the acquisitions as of their respective acquisition dates: Acquisitions through September 30, 2022 (In millions) Cash $ 210 Estimated fair value of deferred/contingent consideration 17 Total consideration $ 227 Allocation of purchase price: Cash and cash equivalents $ 19 Cash and cash equivalents held in a fiduciary capacity 2 Net receivables 12 Other current assets 1 Goodwill 139 Other intangible assets 82 Fixed assets, net 2 Total assets acquired 257 Current liabilities 25 Fiduciary liabilities 2 Other liabilities 3 Total liabilities assumed 30 Net assets acquired $ 227 The purchase price allocation for assets acquired and liabilities assumed is based on estimates that are preliminary in nature and subject to adjustments, which could be material. Any necessary adjustments must be finalized during the measurement period, which for a particular asset, liability, or non-controlling interest ends once the acquirer determines that either (1) the necessary information has been obtained or (2) the information is not available. However, the measurement period for all items is limited to one year from the acquisition date. Items subject to change include: • amounts of intangible assets, fixed assets, capitalized software assets and right-of-use assets, subject to finalization of valuation efforts; • amounts for contingencies, pending the finalization of the Company’s assessment of the portfolio of contingencies; • amounts for deferred tax assets and liabilities, pending the finalization of valuations of the assets acquired, liabilities assumed and associated goodwill discussed below; and • amounts for income tax assets, receivables and liabilities, pending the filing of the acquired companies' pre-acquisition income tax returns and receipt of information from taxing authorities which may change certain estimates and assumptions used. The estimation of fair value requires numerous judgments, assumptions and estimates about future events and uncertainties, which could materially impact these values, and the related amortization, where applicable, in the Company’s results of operations. The following table provides information about intangible assets acquired during 2022: Intangible assets through September 30, 2022 (In millions) Amount Weighted Average Amortization Period Client relationships $ 78 12.0 years Other 4 4.5 years Total intangibles $ 82 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 and nine month periods ended September 30, 2022, include revenue of approximately $16 million and $22 million, respectively, and operating loss of $1 million for the three and nine month periods ended September 30, 2022, for acquisitions made in 2022. The consolidated statements of income for the three and nine month periods ended September 30, 2021 include revenue of approximately $38 million and $73 million, respectively, and operating income of $3 million and $4 million, respectively, for acquisitions made in 2021. Dispositions In April 2022, Mercer sold its U.S. affinity business that provided insurance marketing, brokerage and administration to association and affinity groups for cash proceeds of approximately $140 million and recorded a net gain of $112 million which is included in revenue in the consolidated statements of income. In addition, during the first nine months of 2022, the Company sold certain businesses in Brazil and the U.K. for cash proceeds of approximately $7 million. Prior year acquisitions The Risk and Insurance Services segment completed eight acquisitions during 2021: • April – MMA acq uired 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. • September – MMA acquired Vaaler Insurance, Inc., a North Dakota-based insurance broker providing business insurance, employee health and benefits, and personal lines solutions, with specialized expertise in the construction, education, and healthcare industries. • November – MMA acquired Pelnik Insurance, a North Carolina-based full-service broker providing business insurance, employee health and benefits, and private client services to midsize businesses and individuals throughout the Mid-Atlantic, Southwest Truck Insurance Agency, Inc., a Texas-based broker providing business insurance for the trucking industry, serving clients in the U.S., and Mexico and InSource Insurance Group LLC, a Texas-based full-service broker providing business insurance, employee health and benefits, private client and surety services to the oil and gas, construction, manufacturing, and transportation industries. • December – Marsh acquired Services Assurance Monétique ("SAM"), a France-based affinity insurance broker specializing in bank and retail insurance markets and increased its ownership interest in Marsh India Insurance Broker Private Limited ("Marsh India") from 49% to 92%. The Consulting segment completed one acquisition during 2021: • November – Oliver Wyman Group acquired Huron Consulting Group’s life sciences strategy consulting practice in the U.S. and the U.K., which assists clients in addressing their most important commercial strategy, marketing, pricing, market access and research and development challenges. Total purchase consideration for acquisitions made during the nine months ended September 30, 2021 was approximately $546 million, which consisted of cash paid of $405 million and deferred purchase and estimated contingent consideration of $141 million. Contingent consideration arrangements are based primarily on EBITDA or revenue targets over a period of two Prior year dispositions During the first nine months of 2021, the Company sold certain businesses in the U.S. and the U.K. for cash proceeds of approximately $84 million and recognized a net gain of approximately $50 million, primarily related to the commercial networks business in the U.K. that provided broking and back-office solutions for small independent brokers. Deconsolidation of Russia In the first quarter of 2022, the Company concluded that it does not meet the accounting criteria for control over its wholly-owned Russian subsidiaries due to the evolving trade and economic sanctions against Russia and the related Russian counter sanctions. These sanctions included restrictions on payments to and from Russian companies and reduced currency access through official exchange markets that have significantly impacted the Company's ability to effectively manage and operate its Russian businesses. As a result, the Company deconsolidated its Russian businesses effective as of the end of the first quarter, and recorded a loss of $39 million included in revenue in the consolidated statements of income. The loss consisted of the reclassification of cumulative translation losses from accumulated other comprehensive income and a charge for the write-off of the Russia businesses' net assets. In June 2022, as previously announced in the first quarter, the Company entered into a definitive agreement to exit its businesses in Russia and transfer ownership to local management pending regulatory approvals. Pro-Forma Information The following unaudited pro-forma financial data gives effect to the acquisitions made by the Company during 2022 and 2021. In accordance with accounting guidance related to pro-forma disclosures, the information presented for acquisitions made in 2022 is as if they occurred on January 1, 2021, and reflects acquisitions made in 2021, as if they occurred on January 1, 2020. The unaudited pro-forma information includes the effects of amortization of acquired intangibles in all years. 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 Nine Months Ended (In millions, except per share data) 2022 2021 2022 2021 Revenue $ 4,779 $ 4,652 $ 15,748 $ 14,912 Net income attributable to the Company $ 548 $ 543 $ 2,594 $ 2,358 Basic net income per share attributable to the Company $ 1.10 $ 1.07 $ 5.18 $ 4.65 Diluted net income per share attributable to the Company $ 1.09 $ 1.06 $ 5.12 $ 4.59 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 30, 2022 | |
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 the third quarter of 2022, the Company completed a qualitative impairment assessment and concluded that goodwill was not impaired. 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. Other 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: (In millions) 2022 2021 Balance as of January 1, $ 16,317 $ 15,517 Goodwill acquired 139 374 Other adjustments (a) (880) (243) Balance at September 30, $ 15,576 $ 15,648 (a) Primarily reflects the impact of foreign exchange. The goodwill arising from acquisitions in 2022 and 2021 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. The goodwill acquired in 2022 included approximately $92 million and $25 million in the Risk and Insurance Services and Consulting segments, respectively, which is deductible for tax purposes. Goodwill allocable to the Company’s reportable segments at September 30, 2022 is as follows: Risk and Insurance Services, $12.0 billion and Consulting, $3.6 billion. The gross cost and accumulated amortization of identified intangible assets at September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 December 31, 2021 (In millions) Gross Accumulated Net Gross Accumulated Net Client relationships $ 3,759 $ 1,407 $ 2,352 $ 4,066 $ 1,334 $ 2,732 Other (a) 340 289 51 365 287 78 Amortized intangibles $ 4,099 $ 1,696 $ 2,403 $ 4,431 $ 1,621 $ 2,810 (a) Primarily reflects non-compete agreements, trade names and developed technology. Aggregate amortization expense was $84 million and $258 million for the three and nine months ended September 30, 2022, compared to $89 million and $278 million for the corresponding periods in the prior year. The estimated future aggregate amortization expense is as follows: For the Years Ending December 31, (In millions) Estimated Expense 2022 (excludes amortization through September 30, 2022) $ 86 2023 301 2024 283 2025 252 2026 234 Subsequent years 1,247 Total future amortization $ 2,403 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
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 funds are valued at a readily determinable price. 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 September 30, 2022 and December 31, 2021: Identical Assets Observable Inputs Unobservable Inputs Total (In millions) 09/30/22 12/31/21 09/30/22 12/31/21 09/30/22 12/31/21 09/30/22 12/31/21 Assets: Financial instruments owned: Exchange traded equity securities (a) $ 4 $ 61 $ — $ — $ — $ — $ 4 $ 61 Mutual funds (a) 153 192 — — — — 153 192 Money market funds (b) 89 425 — — — — 89 425 Other equity investment (a) — — — 8 — — — 8 Contingent purchase consideration assets (c) — — — — 2 5 2 5 Total assets measured at fair value $ 246 $ 678 $ — $ 8 $ 2 $ 5 $ 248 $ 691 Fiduciary Assets: U.S. treasury bills (d) $ — $ 55 $ — $ — $ — $ — $ — $ 55 Money market funds 126 527 — — — — 126 527 Total fiduciary assets measured $ 126 $ 582 $ — $ — $ — $ — $ 126 $ 582 Liabilities: Contingent purchase consideration liability (e) $ — $ — $ — $ — $ 328 $ 352 $ 328 $ 352 Total liabilities measured at fair value $ — $ — $ — $ — $ 328 $ 352 $ 328 $ 352 (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) Maturity dates of three months or less. (e) Included in accounts payable and accrued liabilities and other liabilities in the consolidated balance sheets. The Level 3 assets in the table reflect contingent purchase consideration from the sale of businesses. The change in the contingent purchase consideration assets from December 31, 2021 is driven by cash receipts of approximately $3 million. During the nine months ended September 30, 2022, there were no assets or liabilities that were transferred between levels. The following table sets forth a summary of the changes in fair value of the Company’s Level 3 liabilities for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended (In millions) 2022 2021 2022 2021 Balance at beginning of period $ 345 $ 340 $ 352 $ 243 Net additions 4 1 4 99 Payments (32) (54) (66) (72) Revaluation impact 11 18 38 35 Other (a) — (2) — (2) Balance at September 30, $ 328 $ 303 $ 328 $ 303 (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 $222 million and $207 million at September 30, 2022 and December 31, 2021, respectively. Investments in Public and Private Companies The Company has investments in private insurance and consulting companies with a carrying value of $57 million and $58 million at September 30, 2022 and December 31, 2021, 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. In December 2021, the Company increased its ownership in Marsh India from 49% to 92%. Prior to the increase in ownership, the Company accounted for the investment under the equity method of accounting. Private Equity Investments The Company's investments in private equity funds were $165 million and $149 million at September 30, 2022 and December 31, 2021, 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 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 $3 million and $23 million for the three and nine months ended September 30, 2022, respectively, and net investment gains of $13 million and $40 million from these investments for the corresponding periods in 2021. Other Investments At September 30, 2022 and December 31, 2021, the Company held equity investments with readily determinable market values of $17 million and $75 million, respectively. The Company recorded mark-to-market investment gains on these investments of $11 million and $3 million in the nine months ended September 30, 2022 and 2021, respectively. The Company also held investments without readily determinable market values of $38 million and $36 million at September 30, 2022 and December 31, 2021, respectively. In the third quarter, the Company sold certain of these investments for cash proceeds of approximately $62 million, including the investment in the common stock of Alexander Forbes ("AF"), and recorded a net loss of $4 million. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2022 | |
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 accumulated other comprehensive loss in the consolidated balance sheets. The Company concluded that the hedge continues to be highly effective as of September 30, 2022. The U.S. dollar value of the Euro notes decreased $179 million through September 30, 2022, due to the impact of foreign exchange rates, with a corresponding decrease to accumulated other comprehensive loss. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases 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. None of the Company’s leases restrict the payment of dividends or the acquisition of debt or additional lease obligations, or contain significant purchase options. Operating leases are recognized on the balance sheet as 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 following table provides additional information about the Company’s property leases: Three Months Ended Nine Months Ended (In millions) 2022 2021 2022 2021 Lease Cost: Operating lease cost (a) $ 84 $ 93 $ 262 $ 282 Short-term lease cost 1 1 3 4 Variable lease cost 35 38 99 101 Sublease income (3) (3) (12) (16) Net lease cost $ 117 $ 129 $ 352 $ 371 Other information: Operating cash outflows from operating leases $ 286 $ 310 Right of use assets obtained in exchange for new operating lease liabilities $ 148 $ 282 Weighted-average remaining lease term – real estate 8.4 years 9.0 years Weighted-average discount rate – real estate leases 2.87% 2.75% (a) Excludes ROU asset impairment charges. Future minimum lease payments for the Company’s operating leases as of September 30, 2022 are as follows: Payment Dates (In millions) Real Estate Leases Remainder of 2022 $ 90 2023 341 2024 302 2025 272 2026 250 2027 216 Subsequent years 690 Total future lease payments 2,161 Less: Imputed interest (243) Total $ 1,918 Current lease liabilities $ 298 Long-term lease liabilities 1,620 Total lease liabilities $ 1,918 Note: The table excludes obligations for leases with original terms of 12 months or less which have not been recognized as a ROU asset or liability in the consolidated balance sheets . As of September 30, 2022, the Company had additional operating real estate leases that had not yet commenced of $39 million. These operating leases will commence over the next 12 months . |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The Company maintains qualified and non-qualified defined benefit pension plans for 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 by U.S. law and the laws of the non-U.S. jurisdictions in which the Company offers defined benefit plans. The target asset allocation for the U.S. plans is 60% equities and equity alternatives and 40% fixed income. At September 30, 2022, the actual allocation for the U.S. plans was 61% equities and equity alternatives and 39% fixed income. The target allocation for the U.K. plans at September 30, 2022 is 14% equities and equity alternatives and 86% fixed income. At September 30, 2022, the actual allocation for the U.K. plans was 17% equities and equity alternatives and 83% fixed income. The Company's U.K. plans comprised approximately 81% of non-U.S. plan assets at December 31, 2021. 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 net benefit cost or credit of the Company's defined benefit plans is measured on an actuarial basis using various methods and assumptions. The components of the net benefit credit for defined benefit plans are as follows: Combined U.S. and significant non-U.S. Plans Pension Benefits For the Three Months Ended September 30, (In millions) 2022 2021 Service cost $ 6 $ 9 Interest cost 95 87 Expected return on plan assets (191) (208) Recognized actuarial loss 38 52 Net benefit credit $ (52) $ (60) Combined U.S. and significant non-U.S. Plans Pension For the Nine Months Ended September 30, (In millions) 2022 2021 Service cost $ 21 $ 29 Interest cost 294 258 Expected return on plan assets (590) (627) Recognized actuarial loss 114 155 Net periodic benefit credit $ (161) $ (185) Settlement loss 2 2 Net benefit credit $ (159) $ (183) Amounts Recorded in the Consolidated Statements of Income Combined U.S. and significant non-U.S. Plans Pension For the Three Months Ended September 30, (In millions) 2022 2021 Compensation and benefits expense $ 6 $ 9 Other net benefit credit (58) (69) Net benefit credit $ (52) $ (60) Amounts Recorded in the Consolidated Statements of Income Combined U.S. and significant non-U.S. Plans Pension For the Nine Months Ended September 30, (In millions) 2022 2021 Compensation and benefits expense $ 21 $ 29 Other net benefit credit (180) (212) Net benefit credit $ (159) $ (183) U.S. Plans only Pension For the Three Months Ended September 30, (In millions) 2022 2021 Interest cost $ 48 $ 47 Expected return on plan assets (85) (82) Recognized actuarial loss 19 22 Net benefit credit $ (18) $ (13) U.S. Plans only Pension For the Nine Months Ended September 30, (In millions) 2022 2021 Interest cost $ 145 $ 139 Expected return on plan assets (253) (245) Recognized actuarial loss 56 67 Net benefit credit $ (52) $ (39) Significant non-U.S. Plans only Pension For the Three Months Ended September 30, (In millions) 2022 2021 Service cost $ 6 $ 9 Interest cost 47 40 Expected return on plan assets (106) (126) Recognized actuarial loss 19 30 Net benefit credit $ (34) $ (47) Significant non-U.S. Plans only Pension For the Nine Months Ended September 30, (In millions) 2022 2021 Service cost $ 21 $ 29 Interest cost 149 119 Expected return on plan assets (337) (382) Recognized actuarial loss 58 88 Net periodic benefit credit $ (109) $ (146) Settlement loss 2 2 Net benefit credit $ (107) $ (144) 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 September 30, 2022 2021 Weighted average assumptions: Expected return on plan assets 4.56 % 4.72 % Discount rate 2.28 % 1.92 % Rate of compensation increase 2.16 % 1.85 % The Company made contributions to its U.S. and non-U.S. defined benefit pension plans for the three and nine months ended September 30, 2022 of approximately $28 million and $141 million, respectively, compared to contributions of $33 million and $90 million for the corresponding periods in the prior year. The Company expects to contribute approximately $28 million to its U.S. and non-U.S. defined benefit pension plans during the remainder of 2022. 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 for the three and nine months ended September 30, 2022 was $39 million and $122 million, respectively, and $37 million and $115 million for the corresponding periods in the prior year. The cost of the U.K. DC Plans for the three and nine months ended September 30, 2022, was $31 million and $108 million, respectively, and $33 million and $106 million for the corresponding periods in the prior year. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding debt is as follows: (In millions) September 30, December 31, Short-term: Commercial paper $ 600 $ — Current portion of long-term debt 367 17 967 17 Long-term: Senior notes – 3.30% due 2023 350 349 Senior notes – 4.05% due 2023 250 249 Senior notes – 3.50% due 2024 599 599 Senior notes – 3.875% due 2024 998 997 Senior notes – 3.50% due 2025 499 498 Senior notes – 1.349% due 2026 535 629 Senior notes – 3.75% due 2026 598 598 Senior notes – 4.375% due 2029 1,499 1,499 Senior notes – 1.979% due 2030 532 614 Senior notes – 2.250% due 2030 740 739 Senior notes – 2.375% due 2031 396 397 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 593 593 Senior notes – 4.90% due 2049 1,238 1,238 Senior notes – 2.90% due 2051 346 346 Mortgage – 5.70% due 2035 305 316 Other 2 3 10,766 10,950 Less current portion 367 17 $ 10,399 $ 10,933 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 Company had $600 million of commercial paper outstanding at September 30, 2022, at an average effective interest rate of 3.39%. Credit Facilities The Company has a multi-currency unsecured $2.8 billion five-year revolving credit facility (the "Credit Facility"). The interest rate on the Credit Facility is based on LIBOR plus a fixed margin which varies with the Company’s credit ratings. The Credit Facility expires in April 2026, and requires the Company to maintain certain coverage and leverage ratios which are tested quarterly. The Credit 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. As of September 30, 2022, the Company had no borrowings under this facility. On May 31, 2022, the Company secured a $250 million uncommitted revolving credit facility. The facility expires in May 2023, and has similar coverage and leverage ratios as the Credit Facility. The Company had no borrowings outstanding under this facility at September 30, 2022. Additional credit facilities, guarantees and letters of credit are maintained with various banks agg rega ting $507 million at September 30, 2022 and $508 million at December 31, 2021. There were no outstanding borrowings under these facilities at September 30, 2022 and December 31, 2021. Senior Notes In December 2021, the Company issued $400 million of 2.375% senior notes due 2031 and $350 million of 2.90% senior notes due 2051. The Company used the net proceeds from these issuances for general corporate purposes, and repaid $500 million of 2.75% senior notes with an original maturity date of January 2022 in December 2021. On April 15, 2021, the Company repaid $500 million of senior notes maturing in July 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. September 30, 2022 December 31, 2021 (In millions) Carrying Fair Carrying Fair Short-term debt $ 967 $ 965 $ 17 $ 17 Long-term debt $ 10,399 $ 9,434 $ 10,933 $ 12,466 The fair value of the Company's short-term debt consists primarily of commercial paper 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 | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs Restructuring costs include Company initiated actions related to improving and streamlining the Company's global information technology and HR functions, JLT integration costs, improving efficiencies and client services related to the Marsh operational excellence program, and real estate related costs for exiting leased facilities. For the three and nine months ended September 30, 2022, the Company incurred costs of $38 million and $96 million, respectively, reflecting $18 million and $44 million in RIS, $5 million and $16 million in Consulting, and $15 million and $36 million in Corporate related to these initiatives. Details of the restructuring activity from January 1, 2021 through September 30, 2022, are as follows: (In millions) Severance Real Estate Related Costs (a) Information Technology Consulting and Other Outside Services Total Liability at 1/1/21 $ 52 $ 51 $ 2 $ 1 $ 106 2021 charges 38 31 23 71 163 Cash payments (55) (26) (25) (72) (178) Non-cash charges — (22) — — (22) Liability at 12/31/21 $ 35 $ 34 $ — $ — $ 69 2022 charges 6 12 7 71 96 Cash payments (31) (18) (5) (70) (124) Non-cash charges — (5) (2) — (7) Liability at 9/30/22 $ 10 $ 23 $ — $ 1 $ 34 (a) Includes ROU and fixed asset impairments and other real estate related costs. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Common Stock | Common Stock On March 23, 2022, the Board of Directors of the Company authorized an additional $5 billion in share repurchases. This is in addition to the Company's existing share repurchase program, which had approximately $1.3 billion of remaining authorization as of December 31, 2021. During the first nine months of 2022, the Company repurchased 10.1 million shares of its common stock for $1.6 billion. As of September 30, 2022, the Company remained authorized to repurchase up to approximately $4.7 billion in shares of its common stock. There is no time limit on the authorization. During the first nine months of 2021, the Company repurchased 5.3 million shares of its common stock for $734 million. The Company issued approximately 3.1 million shares related to stock compensation and employee stock purchase plans during the first nine months of 2022 and 2021. In September 2022, the Board of Directors of the Company declared a quarterly dividend of $0.590 per share on outstanding common stock, payable on November 15, 2022, to stockholders of record on October 7, 2022. |
Claims, Lawsuits And Other Cont
Claims, Lawsuits And Other Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Claims, Lawsuits and Other Contingencies | Claims, Lawsuits and Other Contingencies Acquisition of Jardine Lloyd Thompson Group plc On April 1, 2019, the Company completed its previously announced acquisition of all of the outstanding shares of JLT. Upon the consummation of the acquisition of JLT, the Company assumed the legal liabilities and became responsible for JLT’s litigation and regulatory exposures as of April 1, 2019. 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, United Kingdom, 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, requests for information in connection with government 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 charge s. In March 2022, the U.S. Department of Justice (DOJ) issued a declination letter, declining to pursue any charges against any JLT entity and seeking disgorgement of $29 million in alleged gross profits on this account. As previously disclosed, the Company recorded a charge for this amount in the fourth quarter of 2021. In addition, in March 2022, the Colombian Superintendecia de Sociedades (SS) concluded its investigation of this matter and notified JLT of its intention to seek $2 million in civil penalties which was recorded in the first quarter of 2022. The SS issued its final resolution in May 2022. In June 2022, JLT reached an agreement to settle the investigation by the U.K. Financial Conduct Authority (FCA) for £7.9 million (or $11 million) in civil penalties which concluded the FCA’s investigation into this matter, and the Company recorded a charge for this amount in the second quarter of 2022. • 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, insolve ncy proceedings, and several litigations and investigations have been commenced in the U.K., Australia, Germany, Switzerland 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, reflected projected redress amounts based on the limited number of files examined as part of the Skilled Person review and report. Thereafter, the FCA expanded the scope of the 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. Payments of redress and expenses during 2021 and the first nine months of 2022 reduced the recorded liability to £6 million (or $6 million) as of September 30, 2022. The suitability review and calculation of redress for affected customers is now substantially complete, and the vast majority of redress payments have been made. In July 2022, the FCA notified JLT that it had closed its review of this matter. This gross liability has been, and we anticipate will continue to be, partially offset by a contractual indemnity obligation 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 describ ed 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 | 9 Months Ended |
Sep. 30, 2022 | |
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 the Oliver Wyman Group. The accounting policies of the segments are the same as those utilized for the consolidated financial statements described in Note 1, Summary of Significant Accounting Policies, in the Company’s 2021 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 segments for the three and nine months ended September 30, 2022 and 2021 is as follows: Three Months Ended Nine Months Ended (In millions) Revenue Operating Income (Loss) Revenue Operating Income (Loss) 2022– Risk and Insurance Services $ 2,838 (a) $ 529 $ 9,700 (c) $ 2,617 Consulting 1,951 (b) 350 6,045 (d) 1,217 Total Operating Segments 4,789 879 15,745 3,834 Corporate/Eliminations (19) (88) (47) (234) Total Consolidated $ 4,770 $ 791 $ 15,698 $ 3,600 2021– Risk and Insurance Services $ 2,670 (a) $ 403 $ 9,036 (c) $ 2,413 Consulting 1,925 (b) 404 5,690 (d) 1,109 Total Operating Segments 4,595 807 14,726 3,522 Corporate/Eliminations (12) (67) (43) (196) Total Consolidated $ 4,583 $ 740 $ 14,683 $ 3,326 (a) Includes interest income on fiduciary funds of $40 million and $4 million in 2022 and 2021, respectively, and equity method income of $8 million in 2021. (b) Includes inter-segment revenue of $19 million and $11 million in 2022 and 2021, respectively. (c) Includes inter-segment revenue of $5 million in both 2022 and 2021, interest income on fiduciary funds of $57 million and $12 million in 2022 and 2021, respectively, and equity method income of $9 million and $25 million in 2022 and 2021, respectively. Revenue for 2022 also includes the loss on deconsolidation of the Russian businesses of $27 million. Revenue for 2021 includes $52 million primarily from the gain on the sale of the U.K. commercial networks business. (d) Includes inter-segment revenue of $42 million and $38 million in 2022 and 2021, respectively. Revenue for 2022 also includes a gain on the sale of the Mercer U.S. affinity business of $112 million, partly offset by the loss on deconsolidation of the Russian businesses of $12 million. Details of operating segment revenue for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended Nine Months Ended (In millions) 2022 2021 2022 2021 Risk and Insurance Services Marsh $ 2,497 $ 2,355 $ 7,833 $ 7,336 Guy Carpenter 341 315 1,867 1,700 Total Risk and Insurance Services 2,838 2,670 9,700 9,036 Consulting Mercer 1,284 1,315 4,016 3,877 Oliver Wyman Group 667 610 2,029 1,813 Total Consulting 1,951 1,925 6,045 5,690 Total Operating Segments 4,789 4,595 15,745 14,726 Corporate Eliminations (19) (12) (47) (43) Total $ 4,770 $ 4,583 $ 15,698 $ 14,683 |
New Accounting Guidance
New Accounting Guidance | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Guidance | New Accounting Guidance New Accounting Pronouncement Adopted Effective January 1, 2022: In October 2021, the FASB issued new guidance for measuring contract assets and contract liabilities acquired in a business combination. In accordance with the new guidance, contract assets and contract liabilities should be measured in accordance with the guidance for revenue from contracts with customers as opposed to the guidance for business combinations. The guidance must be applied on a prospective basis, and is effective for fiscal years beginning after December 15, 2022, including interim periods therein. Early adoption is permitted. The Company elected to adopt this new standard effective January 1, 2022. Adoption of this guidance did not have a material impact on the Company's financial position or results of operations. 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. |
Principles of Consolidation a_2
Principles of Consolidation and Other Matters (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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 (loss) income" 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. Investments in private equity funds 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 its proportionate share of the change in fair value of the funds are recorded in earnings. Investments accounted for in accordance with the equity method of accounting are included in "other assets" in the consolidated balance sheets. |
Income Taxes | The Company's effective tax rate for the three months ended September 30, 2022 was 24.6%, compared with 24.2% for the corresponding quarter of 2021. The effective tax rates for the nine months ended September 30, 2022 and 2021, were 24.6% and 27.1%, respectively. The tax rates in both periods reflect the impact of discrete tax matters such as excess tax benefits related to share-based compensation, enacted tax legislation, changes in uncertain tax positions, deferred tax adjustments and nontaxable adjustments related to contingent consideration for acquisitions. The rate in both periods also reflects tax benefits from planning that postponed the utilization of current year losses in the U.K. to a future year when the tax rate will be 25%. The excess tax benefit related to share-based payments is the most significant discrete item for the three and nine months ended September 30, 2022, reducing the effective tax rate by 0.9% and 1.2%, respectively. The reduction for both the three and nine months ended September 30, 2021 was 0.9%. The effective tax rate for the nine months ended September 30, 2021 reflects the charge related to re-measuring the Company’s U.K. deferred tax assets and liabilities upon the enactment of legislation increasing the U.K. corporate income tax rate from 19% to 25%, effective April 1, 2023. The Company recorded a net charge of $100 million in the second quarter of 2021, which reflected the re-measurement of the Company's U.K. deferred tax assets and liabilities upon enactment of the legislation. The re-measurement of the Company's U.K. deferred tax assets and liabilities was the most significant discrete item in the prior year, increasing the Company's effective tax rate by 3.1% for the nine month period ended September 30, 2021. On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was enacted into law. The Company is currently evaluating the provisions of the new legislation, the most significant of which are the corporate alternative minimum tax and the share repurchase tax. The Company does not expect the IRA to have a significant impact on its financial results of operations when it becomes effective on January 1, 2023. 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 limitations. 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 were $107 million at September 30, 2022, and $94 million at December 31, 2021. It is reasonably possible that the total amount of unrecognized tax benefits will decrease between zero and approximately $48 million within the next twelve months due to settlements of audits and expirations of statutes of limitations. |
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 ("ROU") 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 ROU 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 ROU asset is determined based on the present value of the estimated net cash flows related to the property. Contractual costs outside of the ROU 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 reliant 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 funds are valued at a readily determinable price. 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 Guidance | New Accounting Guidance New Accounting Pronouncement Adopted Effective January 1, 2022: In October 2021, the FASB issued new guidance for measuring contract assets and contract liabilities acquired in a business combination. In accordance with the new guidance, contract assets and contract liabilities should be measured in accordance with the guidance for revenue from contracts with customers as opposed to the guidance for business combinations. The guidance must be applied on a prospective basis, and is effective for fiscal years beginning after December 15, 2022, including interim periods therein. Early adoption is permitted. The Company elected to adopt this new standard effective January 1, 2022. Adoption of this guidance did not have a material impact on the Company's financial position or results of operations. 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. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates components of the Company's revenue: Three Months Ended Nine Months Ended (In millions) 2022 2021 2022 2021 Marsh: EMEA $ 589 $ 600 $ 2,176 $ 2,233 Asia Pacific 312 281 1,015 902 Latin America 118 105 340 298 Total International 1,019 986 3,531 3,433 U.S./Canada 1,451 1,366 4,263 3,894 Total Marsh 2,470 2,352 7,794 7,327 Guy Carpenter 328 314 1,849 1,697 Subtotal 2,798 2,666 9,643 9,024 Fiduciary interest income 40 4 57 12 Total Risk and Insurance Services $ 2,838 $ 2,670 $ 9,700 $ 9,036 Mercer: Wealth $ 561 $ 613 $ 1,775 $ 1,861 Health 451 449 1,562 1,398 Career 272 253 679 618 Total Mercer 1,284 1,315 4,016 3,877 Oliver Wyman Group 667 610 2,029 1,813 Total Consulting $ 1,951 $ 1,925 $ 6,045 $ 5,690 |
Schedule of Contract with Customer, Asset and Liability | The following table provides contract assets and contract liabilities information from contracts with customers: (In millions) September 30, 2022 December 31, 2021 Contract assets $ 370 $ 290 Contract liabilities $ 783 $ 776 |
Per Share Data (Tables)
Per Share Data (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted EPS Calculation | Basic and Diluted EPS Calculation Three Months Ended Nine Months Ended (In millions, except per share data) 2022 2021 2022 2021 Net income before non-controlling interests $ 552 $ 542 $ 2,616 $ 2,367 Less: Net income attributable to non-controlling interests 6 5 32 27 Net income attributable to the Company $ 546 $ 537 $ 2,584 $ 2,340 Basic weighted average common shares outstanding 498 506 501 508 Dilutive effect of potentially issuable common shares 5 7 5 5 Diluted weighted average common shares outstanding 503 513 506 513 Average stock price used to calculate common stock equivalents $ 160.14 $ 151.22 $ 159.35 $ 133.41 |
Supplemental Disclosures to t_2
Supplemental Disclosures to the Consolidated Statements of Cash Flows (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Additional Information Concerning Acquisitions, Interest and Income Taxes Paid | The following table provides additional information concerning acquisitions, interest and income taxes paid for the nine month periods ended September 30, 2022 and 2021. (In millions) 2022 2021 Assets acquired, excluding cash, and cash and cash equivalents held in a fiduciary capacity $ 236 $ 601 Acquisition-related deposit 24 — Fiduciary liabilities assumed (2) (17) Liabilities assumed (28) (59) Contingent/deferred purchase consideration (17) (141) Net cash outflow for acquisitions $ 213 $ 384 (In millions) 2022 2021 Interest paid $ 388 $ 407 Income taxes paid, net of refunds $ 697 $ 686 For the Nine Months Ended September 30, (In millions) 2022 2021 Operating: Contingent consideration payments for prior year acquisitions $ (38) $ (46) Receipt of contingent consideration for dispositions — 19 Acquisition/disposition related net charges (credits) for adjustments 38 11 Adjustments and payments related to contingent consideration $ — $ (16) Financing: Contingent consideration for prior year acquisitions $ (28) $ (26) Deferred consideration related to prior year acquisitions (116) (84) Payments of deferred and contingent consideration for acquisitions $ (144) $ (110) Receipt of contingent consideration for dispositions $ 3 $ 71 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 and nine months ended September 30, 2022 and 2021, including amounts reclassified out of AOCI, are as follows: (In millions) Pension/Post-Retirement Plans Gains (Losses) Foreign Currency Translation Adjustments Total Balance as of July 1, 2022 $ (2,957) $ (2,406) $ (5,363) Other comprehensive income (loss) before reclassifications 182 (895) (713) Amounts reclassified from accumulated other comprehensive income 28 — 28 Net current period other comprehensive income (loss) 210 (895) (685) Balance as of September 30, 2022 $ (2,747) $ (3,301) $ (6,048) (In millions) Pension/Post-Retirement Plans Gains (Losses) Foreign Currency Translation Adjustments Total Balance as of July 1, 2021 $ (4,102) $ (1,051) $ (5,153) Other comprehensive income (loss) before reclassifications 115 (346) (231) Amounts reclassified from accumulated other comprehensive income 39 — 39 Net current period other comprehensive income (loss) 154 (346) (192) Balance as of September 30, 2021 $ (3,948) $ (1,397) $ (5,345) (In millions) Pension/Post-Retirement Plans Gains (Losses) Foreign Currency Translation Adjustments Total Balance as of December 31, 2021 $ (3,202) $ (1,373) $ (4,575) Other comprehensive income (loss) before reclassifications 371 (1,928) (1,557) Amounts reclassified from accumulated other comprehensive income 84 — 84 Net current period other comprehensive income (loss) 455 (1,928) (1,473) Balance as of September 30, 2022 $ (2,747) $ (3,301) $ (6,048) (In millions) Pension/Post-Retirement Plans Gains (Losses) Foreign Currency Translation Adjustments Total Balance as of December 31, 2020 $ (4,126) $ (984) $ (5,110) Other comprehensive income (loss) before reclassifications 63 (413) (350) Amounts reclassified from accumulated other comprehensive income 115 — 115 Net current period other comprehensive income (loss) 178 (413) (235) Balance as of September 30, 2021 $ (3,948) $ (1,397) $ (5,345) |
Schedule of Components of Comprehensive Income (Loss) | The components of other comprehensive (loss) income for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended September 30, 2022 2021 (In millions) Pre-Tax Tax (Credit) Net of Tax Pre-Tax Tax (Credit) Net of Tax Foreign currency translation adjustments $ (895) $ — $ (895) $ (346) $ — $ (346) Pension/post-retirement plans: Amortization of losses included in net periodic pension cost: Net actuarial losses (a) 37 9 28 52 13 39 Subtotal 37 9 28 52 13 39 Foreign currency translation adjustments 247 63 184 88 21 67 Effect of remeasurement (2) — (2) 64 16 48 Other adjustments (1) (1) — — — — Pension/post-retirement plans gains 281 71 210 204 50 154 Other comprehensive (loss) income $ (614) $ 71 $ (685) $ (142) $ 50 $ (192) (a) 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. Nine Months Ended September 30, 2022 2021 (In millions) Pre-Tax Tax (Credit) Net of Tax Pre-Tax Tax (Credit) Net of Tax Foreign currency translation adjustments $ (1,928) $ — $ (1,928) $ (413) $ — $ (413) Pension/post-retirement plans: Amortization of (gains) losses included in net periodic pension cost: Prior service credits (a) (1) — (1) (1) — (1) Net actuarial losses (a) 114 29 85 156 40 116 Subtotal 113 29 84 155 40 115 Foreign currency translation adjustments 499 123 376 7 1 6 Effect of remeasurement 8 1 7 77 17 60 Effect of settlement 2 — 2 2 — 2 Other adjustments (19) (5) (14) (7) (2) (5) Pension/post-retirement plans gains 603 148 455 234 56 178 Other comprehensive (loss) income $ (1,325) $ 148 $ (1,473) $ (179) $ 56 $ (235) (a) 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) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule For Allocation of Acquisition Costs | The following table presents the preliminary allocation of purchase consideration to the assets acquired and liabilities assumed during 2022, based on the estimated fair values for the acquisitions as of their respective acquisition dates: Acquisitions through September 30, 2022 (In millions) Cash $ 210 Estimated fair value of deferred/contingent consideration 17 Total consideration $ 227 Allocation of purchase price: Cash and cash equivalents $ 19 Cash and cash equivalents held in a fiduciary capacity 2 Net receivables 12 Other current assets 1 Goodwill 139 Other intangible assets 82 Fixed assets, net 2 Total assets acquired 257 Current liabilities 25 Fiduciary liabilities 2 Other liabilities 3 Total liabilities assumed 30 Net assets acquired $ 227 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The following table provides information about intangible assets acquired during 2022: Intangible assets through September 30, 2022 (In millions) Amount Weighted Average Amortization Period Client relationships $ 78 12.0 years Other 4 4.5 years Total intangibles $ 82 |
Schedule of Pro-Forma Information | The following unaudited pro-forma financial data gives effect to the acquisitions made by the Company during 2022 and 2021. In accordance with accounting guidance related to pro-forma disclosures, the information presented for acquisitions made in 2022 is as if they occurred on January 1, 2021, and reflects acquisitions made in 2021, as if they occurred on January 1, 2020. The unaudited pro-forma information includes the effects of amortization of acquired intangibles in all years. 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 Nine Months Ended (In millions, except per share data) 2022 2021 2022 2021 Revenue $ 4,779 $ 4,652 $ 15,748 $ 14,912 Net income attributable to the Company $ 548 $ 543 $ 2,594 $ 2,358 Basic net income per share attributable to the Company $ 1.10 $ 1.07 $ 5.18 $ 4.65 Diluted net income per share attributable to the Company $ 1.09 $ 1.06 $ 5.12 $ 4.59 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill are as follows: (In millions) 2022 2021 Balance as of January 1, $ 16,317 $ 15,517 Goodwill acquired 139 374 Other adjustments (a) (880) (243) Balance at September 30, $ 15,576 $ 15,648 (a) Primarily reflects the impact of foreign exchange. |
Schedule of Amortized Intangible Assets | The gross cost and accumulated amortization of identified intangible assets at September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 December 31, 2021 (In millions) Gross Accumulated Net Gross Accumulated Net Client relationships $ 3,759 $ 1,407 $ 2,352 $ 4,066 $ 1,334 $ 2,732 Other (a) 340 289 51 365 287 78 Amortized intangibles $ 4,099 $ 1,696 $ 2,403 $ 4,431 $ 1,621 $ 2,810 (a) Primarily reflects non-compete agreements, trade names and developed technology. |
Schedule of Estimated Future Aggregate Amortization Expense | The estimated future aggregate amortization expense is as follows: For the Years Ending December 31, (In millions) Estimated Expense 2022 (excludes amortization through September 30, 2022) $ 86 2023 301 2024 283 2025 252 2026 234 Subsequent years 1,247 Total future amortization $ 2,403 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 September 30, 2022 and December 31, 2021: Identical Assets Observable Inputs Unobservable Inputs Total (In millions) 09/30/22 12/31/21 09/30/22 12/31/21 09/30/22 12/31/21 09/30/22 12/31/21 Assets: Financial instruments owned: Exchange traded equity securities (a) $ 4 $ 61 $ — $ — $ — $ — $ 4 $ 61 Mutual funds (a) 153 192 — — — — 153 192 Money market funds (b) 89 425 — — — — 89 425 Other equity investment (a) — — — 8 — — — 8 Contingent purchase consideration assets (c) — — — — 2 5 2 5 Total assets measured at fair value $ 246 $ 678 $ — $ 8 $ 2 $ 5 $ 248 $ 691 Fiduciary Assets: U.S. treasury bills (d) $ — $ 55 $ — $ — $ — $ — $ — $ 55 Money market funds 126 527 — — — — 126 527 Total fiduciary assets measured $ 126 $ 582 $ — $ — $ — $ — $ 126 $ 582 Liabilities: Contingent purchase consideration liability (e) $ — $ — $ — $ — $ 328 $ 352 $ 328 $ 352 Total liabilities measured at fair value $ — $ — $ — $ — $ 328 $ 352 $ 328 $ 352 (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) Maturity dates of three months or less. (e) Included in accounts payable and accrued liabilities and other liabilities in the consolidated balance sheets. |
Schedule of Changes in Fair Value of Level 3 Liabilities Representing Acquisition Related Contingent Consideration | The following table sets forth a summary of the changes in fair value of the Company’s Level 3 liabilities for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended (In millions) 2022 2021 2022 2021 Balance at beginning of period $ 345 $ 340 $ 352 $ 243 Net additions 4 1 4 99 Payments (32) (54) (66) (72) Revaluation impact 11 18 38 35 Other (a) — (2) — (2) Balance at September 30, $ 328 $ 303 $ 328 $ 303 (a) Primarily reflects the impact of foreign exchange. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost and Additional Information | The following table provides additional information about the Company’s property leases: Three Months Ended Nine Months Ended (In millions) 2022 2021 2022 2021 Lease Cost: Operating lease cost (a) $ 84 $ 93 $ 262 $ 282 Short-term lease cost 1 1 3 4 Variable lease cost 35 38 99 101 Sublease income (3) (3) (12) (16) Net lease cost $ 117 $ 129 $ 352 $ 371 Other information: Operating cash outflows from operating leases $ 286 $ 310 Right of use assets obtained in exchange for new operating lease liabilities $ 148 $ 282 Weighted-average remaining lease term – real estate 8.4 years 9.0 years Weighted-average discount rate – real estate leases 2.87% 2.75% (a) Excludes ROU asset impairment charges. |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments for the Company’s operating leases as of September 30, 2022 are as follows: Payment Dates (In millions) Real Estate Leases Remainder of 2022 $ 90 2023 341 2024 302 2025 272 2026 250 2027 216 Subsequent years 690 Total future lease payments 2,161 Less: Imputed interest (243) Total $ 1,918 Current lease liabilities $ 298 Long-term lease liabilities 1,620 Total lease liabilities $ 1,918 Note: The table excludes obligations for leases with original terms of 12 months or less which have not been recognized as a ROU asset or liability in the consolidated balance sheets . |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of the net benefit credit for defined benefit plans are as follows: Combined U.S. and significant non-U.S. Plans Pension Benefits For the Three Months Ended September 30, (In millions) 2022 2021 Service cost $ 6 $ 9 Interest cost 95 87 Expected return on plan assets (191) (208) Recognized actuarial loss 38 52 Net benefit credit $ (52) $ (60) Combined U.S. and significant non-U.S. Plans Pension For the Nine Months Ended September 30, (In millions) 2022 2021 Service cost $ 21 $ 29 Interest cost 294 258 Expected return on plan assets (590) (627) Recognized actuarial loss 114 155 Net periodic benefit credit $ (161) $ (185) Settlement loss 2 2 Net benefit credit $ (159) $ (183) Amounts Recorded in the Consolidated Statements of Income Combined U.S. and significant non-U.S. Plans Pension For the Three Months Ended September 30, (In millions) 2022 2021 Compensation and benefits expense $ 6 $ 9 Other net benefit credit (58) (69) Net benefit credit $ (52) $ (60) Amounts Recorded in the Consolidated Statements of Income Combined U.S. and significant non-U.S. Plans Pension For the Nine Months Ended September 30, (In millions) 2022 2021 Compensation and benefits expense $ 21 $ 29 Other net benefit credit (180) (212) Net benefit credit $ (159) $ (183) U.S. Plans only Pension For the Three Months Ended September 30, (In millions) 2022 2021 Interest cost $ 48 $ 47 Expected return on plan assets (85) (82) Recognized actuarial loss 19 22 Net benefit credit $ (18) $ (13) U.S. Plans only Pension For the Nine Months Ended September 30, (In millions) 2022 2021 Interest cost $ 145 $ 139 Expected return on plan assets (253) (245) Recognized actuarial loss 56 67 Net benefit credit $ (52) $ (39) Significant non-U.S. Plans only Pension For the Three Months Ended September 30, (In millions) 2022 2021 Service cost $ 6 $ 9 Interest cost 47 40 Expected return on plan assets (106) (126) Recognized actuarial loss 19 30 Net benefit credit $ (34) $ (47) Significant non-U.S. Plans only Pension For the Nine Months Ended September 30, (In millions) 2022 2021 Service cost $ 21 $ 29 Interest cost 149 119 Expected return on plan assets (337) (382) Recognized actuarial loss 58 88 Net periodic benefit credit $ (109) $ (146) Settlement loss 2 2 Net benefit credit $ (107) $ (144) |
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 September 30, 2022 2021 Weighted average assumptions: Expected return on plan assets 4.56 % 4.72 % Discount rate 2.28 % 1.92 % Rate of compensation increase 2.16 % 1.85 % |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt is as follows: (In millions) September 30, December 31, Short-term: Commercial paper $ 600 $ — Current portion of long-term debt 367 17 967 17 Long-term: Senior notes – 3.30% due 2023 350 349 Senior notes – 4.05% due 2023 250 249 Senior notes – 3.50% due 2024 599 599 Senior notes – 3.875% due 2024 998 997 Senior notes – 3.50% due 2025 499 498 Senior notes – 1.349% due 2026 535 629 Senior notes – 3.75% due 2026 598 598 Senior notes – 4.375% due 2029 1,499 1,499 Senior notes – 1.979% due 2030 532 614 Senior notes – 2.250% due 2030 740 739 Senior notes – 2.375% due 2031 396 397 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 593 593 Senior notes – 4.90% due 2049 1,238 1,238 Senior notes – 2.90% due 2051 346 346 Mortgage – 5.70% due 2035 305 316 Other 2 3 10,766 10,950 Less current portion 367 17 $ 10,399 $ 10,933 |
Schedule of Estimated Fair Value Of Significant Financial Instruments | 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. September 30, 2022 December 31, 2021 (In millions) Carrying Fair Carrying Fair Short-term debt $ 967 $ 965 $ 17 $ 17 Long-term debt $ 10,399 $ 9,434 $ 10,933 $ 12,466 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activities | Details of the restructuring activity from January 1, 2021 through September 30, 2022, are as follows: (In millions) Severance Real Estate Related Costs (a) Information Technology Consulting and Other Outside Services Total Liability at 1/1/21 $ 52 $ 51 $ 2 $ 1 $ 106 2021 charges 38 31 23 71 163 Cash payments (55) (26) (25) (72) (178) Non-cash charges — (22) — — (22) Liability at 12/31/21 $ 35 $ 34 $ — $ — $ 69 2022 charges 6 12 7 71 96 Cash payments (31) (18) (5) (70) (124) Non-cash charges — (5) (2) — (7) Liability at 9/30/22 $ 10 $ 23 $ — $ 1 $ 34 (a) Includes ROU and fixed asset impairments and other real estate related costs. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Selected Information And Details For MMC's Operating Segments | Selected information about the Company’s segments for the three and nine months ended September 30, 2022 and 2021 is as follows: Three Months Ended Nine Months Ended (In millions) Revenue Operating Income (Loss) Revenue Operating Income (Loss) 2022– Risk and Insurance Services $ 2,838 (a) $ 529 $ 9,700 (c) $ 2,617 Consulting 1,951 (b) 350 6,045 (d) 1,217 Total Operating Segments 4,789 879 15,745 3,834 Corporate/Eliminations (19) (88) (47) (234) Total Consolidated $ 4,770 $ 791 $ 15,698 $ 3,600 2021– Risk and Insurance Services $ 2,670 (a) $ 403 $ 9,036 (c) $ 2,413 Consulting 1,925 (b) 404 5,690 (d) 1,109 Total Operating Segments 4,595 807 14,726 3,522 Corporate/Eliminations (12) (67) (43) (196) Total Consolidated $ 4,583 $ 740 $ 14,683 $ 3,326 (a) Includes interest income on fiduciary funds of $40 million and $4 million in 2022 and 2021, respectively, and equity method income of $8 million in 2021. (b) Includes inter-segment revenue of $19 million and $11 million in 2022 and 2021, respectively. (c) Includes inter-segment revenue of $5 million in both 2022 and 2021, interest income on fiduciary funds of $57 million and $12 million in 2022 and 2021, respectively, and equity method income of $9 million and $25 million in 2022 and 2021, respectively. Revenue for 2022 also includes the loss on deconsolidation of the Russian businesses of $27 million. Revenue for 2021 includes $52 million primarily from the gain on the sale of the U.K. commercial networks business. (d) Includes inter-segment revenue of $42 million and $38 million in 2022 and 2021, respectively. Revenue for 2022 also includes a gain on the sale of the Mercer U.S. affinity business of $112 million, partly offset by the loss on deconsolidation of the Russian businesses of $12 million. |
Schedule of Details of Operating Segment Revenue | Details of operating segment revenue for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended Nine Months Ended (In millions) 2022 2021 2022 2021 Risk and Insurance Services Marsh $ 2,497 $ 2,355 $ 7,833 $ 7,336 Guy Carpenter 341 315 1,867 1,700 Total Risk and Insurance Services 2,838 2,670 9,700 9,036 Consulting Mercer 1,284 1,315 4,016 3,877 Oliver Wyman Group 667 610 2,029 1,813 Total Consulting 1,951 1,925 6,045 5,690 Total Operating Segments 4,789 4,595 15,745 14,726 Corporate Eliminations (19) (12) (47) (43) Total $ 4,770 $ 4,583 $ 15,698 $ 14,683 |
Nature of Operations (Details)
Nature of Operations (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2022 USD ($) | Sep. 30, 2022 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of business segments (segment) | segment | 2 | |
Loss on deconsolidation of russian entities and other charges | $ | $ 52 |
Principles of Consolidation A_3
Principles of Consolidation And Other Matters (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Operating funds related to regulatory requirements or as collateral under captive insurance arrangements | $ 295,000,000 | $ 295,000,000 | $ 303,000,000 | |||
Equity method investments lag period | 3 months | |||||
Gain on investment income, net | (1,000,000) | $ 13,000,000 | $ 27,000,000 | $ 43,000,000 | ||
Loss on sale of other investments | $ (4,000,000) | |||||
Effective tax rate (as a percent) | 24.60% | 24.20% | 24.60% | 27.10% | ||
Excess tax benefit related to share-based payments, percent | 0.90% | 0.90% | 1.20% | 0.90% | ||
Charge related to revaluation of deferred tax assets and liabilities | $ 100,000,000 | |||||
Decrease in effective tax rate due to change in U.K. corporate income tax rate, percent | 3.10% | |||||
Unrecognized tax benefits | $ 107,000,000 | $ 107,000,000 | $ 94,000,000 | |||
Minimum | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Reasonably possible decrease in unrecognized tax benefits | 0 | 0 | ||||
Maximum | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Reasonably possible decrease in unrecognized tax benefits | $ 48,000,000 | $ 48,000,000 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Threshold percentage of total revenue | 2% | |||
Revenue recognized that was included in the contract liability balance at the beginning of the period | $ 75 | $ 131 | $ 529 | $ 511 |
Performance obligation satisfied in previous period | 13 | $ 6 | 74 | $ 68 |
Mercer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, remaining performance obligation | $ 234 | $ 234 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 4,770 | $ 4,583 | $ 15,698 | $ 14,683 |
Risk and Insurance Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,838 | 2,670 | 9,700 | 9,036 |
Fiduciary interest income | 40 | 4 | 57 | 12 |
Risk and Insurance Services | Total International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,019 | 986 | 3,531 | 3,433 |
Risk and Insurance Services | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 589 | 600 | 2,176 | 2,233 |
Risk and Insurance Services | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 312 | 281 | 1,015 | 902 |
Risk and Insurance Services | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 118 | 105 | 340 | 298 |
Risk and Insurance Services | U.S./Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,451 | 1,366 | 4,263 | 3,894 |
Consulting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,951 | 1,925 | 6,045 | 5,690 |
Consulting | Wealth | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 561 | 613 | 1,775 | 1,861 |
Consulting | Health | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 451 | 449 | 1,562 | 1,398 |
Consulting | Career | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 272 | 253 | 679 | 618 |
Marsh & Guy Carpenter | Risk and Insurance Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,798 | 2,666 | 9,643 | 9,024 |
Marsh | Risk and Insurance Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,470 | 2,352 | 7,794 | 7,327 |
Guy Carpenter | Risk and Insurance Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 328 | 314 | 1,849 | 1,697 |
Mercer | Consulting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,284 | 1,315 | 4,016 | 3,877 |
Oliver Wyman Group | Consulting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 667 | $ 610 | $ 2,029 | $ 1,813 |
Revenue - Contract Assets and C
Revenue - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 370 | $ 290 |
Contract liabilities | $ 783 | $ 776 |
Revenue - Estimated Revenue Exp
Revenue - Estimated Revenue Expected to Be Recognized Related to Performance Obligations (Details) $ in Millions | Sep. 30, 2022 USD ($) |
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 | $ 98 |
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 | $ 66 |
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 | $ 39 |
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 | $ 21 |
Revenue, remaining performance obligation, expected timing of satisfaction, period (in years) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 10 |
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 | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Fiduciary Assets and Liabilities [Line Items] | |||||
Net uncollected premiums and claims receivable and payable | $ 12,500 | $ 12,500 | $ 13,000 | ||
Risk and Insurance Services | |||||
Fiduciary Assets and Liabilities [Line Items] | |||||
Interest on fiduciary funds | 40 | $ 4 | 57 | $ 12 | |
Operating Segments | Risk and Insurance Services | |||||
Fiduciary Assets and Liabilities [Line Items] | |||||
Interest on fiduciary funds | $ 40 | $ 4 | $ 57 | $ 12 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income before non-controlling interests | $ 552 | $ 542 | $ 2,616 | $ 2,367 |
Less: Net income attributable to non-controlling interests | 6 | 5 | 32 | 27 |
Net income attributable to the Company | $ 546 | $ 537 | $ 2,584 | $ 2,340 |
Basic weighted average common shares outstanding (in shares) | 498 | 506 | 501 | 508 |
Dilutive effect of potentially issuable common shares (in shares) | 5 | 7 | 5 | 5 |
Diluted weighted average common shares outstanding (in shares) | 503 | 513 | 506 | 513 |
Average stock price used to calculate common stock equivalents (in dollars per share) | $ 160.14 | $ 151.22 | $ 159.35 | $ 133.41 |
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 | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | ||
Assets acquired, excluding cash, and cash and cash equivalents held in a fiduciary capacity | $ 236 | $ 601 |
Acquisition-related deposit | 24 | 0 |
Fiduciary liabilities assumed | (2) | (17) |
Liabilities assumed | (28) | (59) |
Contingent/deferred purchase consideration | (17) | (141) |
Net cash outflow for acquisitions | 213 | 384 |
Interest paid | 388 | 407 |
Income taxes paid, net of refunds | $ 697 | $ 686 |
Supplemental Disclosures (Suppl
Supplemental Disclosures (Supplemental Operating and Financing Cash Flow Items) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating: | ||
Contingent consideration payments for prior year acquisitions | $ (38) | $ (46) |
Receipt of contingent consideration for dispositions | 0 | 19 |
Acquisition/disposition related net charges (credits) for adjustments | 38 | 11 |
Adjustments and payments related to contingent consideration | 0 | (16) |
Financing: | ||
Contingent consideration for prior year acquisitions | (28) | (26) |
Deferred consideration related to prior year acquisitions | (116) | (84) |
Payments of deferred and contingent consideration for acquisitions | (144) | (110) |
Receipt of contingent consideration for dispositions | $ 3 | $ 71 |
Supplemental Disclosures to t_4
Supplemental Disclosures to the Consolidated Statements of Cash Flows (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | ||||
Non-cash issuance of common stock | $ 366 | $ 225 | ||
Stock-based compensation expense, equity awards | $ 89 | $ 87 | $ 283 | $ 263 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Schedule of Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ 11,222 | |||
Other comprehensive loss, net of tax | $ (685) | $ (192) | (1,473) | $ (235) |
Balance, end of period | 9,791 | 9,888 | 9,791 | 9,888 |
AOCI Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (5,363) | (5,153) | (4,575) | (5,110) |
Other comprehensive income (loss) before reclassifications | (713) | (231) | (1,557) | (350) |
Amounts reclassified from accumulated other comprehensive income | 28 | 39 | 84 | 115 |
Other comprehensive loss, net of tax | (685) | (192) | (1,473) | (235) |
Balance, end of period | (6,048) | (5,345) | (6,048) | (5,345) |
Pension/Post-Retirement Plans Gains (Losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (2,957) | (4,102) | (3,202) | (4,126) |
Other comprehensive income (loss) before reclassifications | 182 | 115 | 371 | 63 |
Amounts reclassified from accumulated other comprehensive income | 28 | 39 | 84 | 115 |
Other comprehensive loss, net of tax | 210 | 154 | 455 | 178 |
Balance, end of period | (2,747) | (3,948) | (2,747) | (3,948) |
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (2,406) | (1,051) | (1,373) | (984) |
Other comprehensive income (loss) before reclassifications | (895) | (346) | (1,928) | (413) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive loss, net of tax | (895) | (346) | (1,928) | (413) |
Balance, end of period | $ (3,301) | $ (1,397) | $ (3,301) | $ (1,397) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) (Schedule Of Components Of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before tax | $ (614) | $ (142) | $ (1,325) | $ (179) |
Other comprehensive income (loss), tax | 71 | 50 | 148 | 56 |
Other comprehensive loss, net of tax | (685) | (192) | (1,473) | (235) |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before reclassification, before tax | (895) | (346) | (1,928) | (413) |
Other comprehensive income (loss), before reclassification, tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), before reclassification, net of tax | (895) | (346) | (1,928) | (413) |
Reclassification from AOCI, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive loss, net of tax | (895) | (346) | (1,928) | (413) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before reclassification, net of tax | 182 | 115 | 371 | 63 |
Reclassification from AOCI, before Tax | 37 | 52 | 113 | 155 |
Reclassification from AOCI, tax | 9 | 13 | 29 | 40 |
Reclassification from AOCI, net of tax | 28 | 39 | 84 | 115 |
Other comprehensive income (loss), before tax | 281 | 204 | 603 | 234 |
Other comprehensive income (loss), tax | 71 | 50 | 148 | 56 |
Other comprehensive loss, net of tax | 210 | 154 | 455 | 178 |
Prior service credits | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, before Tax | (1) | (1) | ||
Reclassification from AOCI, tax | 0 | 0 | ||
Reclassification from AOCI, net of tax | (1) | (1) | ||
Net actuarial losses | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, before Tax | 37 | 52 | 114 | 156 |
Reclassification from AOCI, tax | 9 | 13 | 29 | 40 |
Reclassification from AOCI, net of tax | 28 | 39 | 85 | 116 |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before reclassification, before tax | 247 | 88 | 499 | 7 |
Other comprehensive income (loss), before reclassification, tax | 63 | 21 | 123 | 1 |
Other comprehensive income (loss), before reclassification, net of tax | 184 | 67 | 376 | 6 |
Effect of remeasurement | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before reclassification, before tax | (2) | 64 | 8 | 77 |
Other comprehensive income (loss), before reclassification, tax | 0 | 16 | 1 | 17 |
Other comprehensive income (loss), before reclassification, net of tax | (2) | 48 | 7 | 60 |
Effect of settlement | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before reclassification, before tax | 2 | 2 | ||
Other comprehensive income (loss), before reclassification, tax | 0 | 0 | ||
Other comprehensive income (loss), before reclassification, net of tax | 2 | 2 | ||
Other adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before reclassification, before tax | (1) | 0 | (19) | (7) |
Other comprehensive income (loss), before reclassification, tax | (1) | 0 | (5) | (2) |
Other comprehensive income (loss), before reclassification, net of tax | $ 0 | $ 0 | $ (14) | $ (5) |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) acquisition | Sep. 30, 2021 USD ($) | Dec. 31, 2021 acquisition | Nov. 30, 2021 | |
Business Acquisition [Line Items] | ||||||||
Total consideration | $ 227 | $ 546 | ||||||
Cash paid | 210 | 405 | ||||||
Estimated fair value of deferred/contingent consideration | 17 | 141 | ||||||
Deferred purchase consideration from prior years' acquisitions | 116 | 84 | ||||||
Contingent consideration from prior year's acquisitions | 28 | 26 | ||||||
Deconsolidation of Russian businesses | $ (39) | (39) | 0 | |||||
U.S. Affinity Business | ||||||||
Business Acquisition [Line Items] | ||||||||
Disposal group, consideration | $ 140 | |||||||
Gain on disposal | $ 112 | |||||||
Certain Businesses Primarily in the U.S. and U.K. | ||||||||
Business Acquisition [Line Items] | ||||||||
Disposal group, consideration | 84 | |||||||
Gain on disposal | 50 | |||||||
Certain Businesses Primarily in Brazil | ||||||||
Business Acquisition [Line Items] | ||||||||
Disposal group, consideration | 7 | |||||||
Marsh India Insurance Brokers Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of ownership in equity investment | 92% | 49% | ||||||
Prior Fiscal Periods Acquisitions | ||||||||
Business Acquisition [Line Items] | ||||||||
Deferred purchase consideration from prior years' acquisitions | 84 | |||||||
Contingent consideration from prior year's acquisitions | 66 | 72 | ||||||
Pro forma revenue | $ 38 | 73 | ||||||
Operating income (loss) related to acquisitions | $ 3 | $ 4 | ||||||
Current Fiscal Period Acquisitions | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration | 227 | |||||||
Cash paid | 210 | |||||||
Estimated fair value of deferred/contingent consideration | 17 | |||||||
Pro forma revenue | $ 16 | 22 | ||||||
Operating income (loss) related to acquisitions | $ (1) | $ (1) | ||||||
Risk and Insurance Services | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of acquisitions made (in acquisitions) | acquisition | 8 | 8 | ||||||
Consulting | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of acquisitions made (in acquisitions) | acquisition | 3 | 1 | ||||||
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 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions (Allocation Of Acquisition Costs) (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Cash | $ 210 | $ 405 | ||
Estimated fair value of deferred/contingent consideration | 17 | 141 | ||
Total consideration | 227 | 546 | ||
Allocation of purchase price: | ||||
Goodwill | 15,576 | $ 15,648 | $ 16,317 | $ 15,517 |
Current Fiscal Period Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Cash | 210 | |||
Estimated fair value of deferred/contingent consideration | 17 | |||
Total consideration | 227 | |||
Allocation of purchase price: | ||||
Cash and cash equivalents | 19 | |||
Cash and cash equivalents held in a fiduciary capacity | 2 | |||
Net receivables | 12 | |||
Other current assets | 1 | |||
Goodwill | 139 | |||
Other intangible assets | 82 | |||
Fixed assets, net | 2 | |||
Total assets acquired | 257 | |||
Current liabilities | 25 | |||
Fiduciary liabilities | 2 | |||
Other liabilities | 3 | |||
Total liabilities assumed | 30 | |||
Net assets acquired | $ 227 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions (Acquired Finite-Lived Intangible Assets) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 82 |
Client relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 78 |
Finite-lived intangible assets, remaining amortization period | 12 years |
Other | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 4 |
Finite-lived intangible assets, remaining amortization period | 4 years 6 months |
Acquisitions and Dispositions_5
Acquisitions and Dispositions (Pro-Forma Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||||
Revenue | $ 4,779 | $ 4,652 | $ 15,748 | $ 14,912 |
Net income attributable to the Company | $ 548 | $ 543 | $ 2,594 | $ 2,358 |
Basic net income per share attributable to the Company (in dollars per share) | $ 1.10 | $ 1.07 | $ 5.18 | $ 4.65 |
Diluted net income per share attributable to the Company (in dollars per share) | $ 1.09 | $ 1.06 | $ 5.12 | $ 4.59 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill [Roll Forward] | ||
Balance as of January 1, | $ 16,317 | $ 15,517 |
Goodwill acquired | 139 | 374 |
Other adjustments | (880) | (243) |
Balance at September 30, | $ 15,576 | $ 15,648 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||||
Goodwill acquired | $ 139 | $ 374 | ||||
Goodwill | $ 15,576 | $ 15,648 | 15,576 | 15,648 | $ 16,317 | $ 15,517 |
Aggregate amortization expense | 84 | $ 89 | 258 | $ 278 | ||
Risk and Insurance Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill acquired | 92 | |||||
Goodwill, expected tax deductible amount | 92 | 92 | ||||
Goodwill | 12,000 | 12,000 | ||||
Consulting | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill acquired | 25 | |||||
Goodwill, expected tax deductible amount | 25 | 25 | ||||
Goodwill | $ 3,600 | $ 3,600 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles (Amortized Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | $ 4,099 | $ 4,431 |
Accumulated Amortization | 1,696 | 1,621 |
Net Carrying Amount | 2,403 | 2,810 |
Client relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 3,759 | 4,066 |
Accumulated Amortization | 1,407 | 1,334 |
Net Carrying Amount | 2,352 | 2,732 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 340 | 365 |
Accumulated Amortization | 289 | 287 |
Net Carrying Amount | $ 51 | $ 78 |
Goodwill And Other Intangible_5
Goodwill And Other Intangibles (Estimated Future Aggregate Amortization Expense) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (excludes amortization through September 30, 2022) | $ 86 | |
2023 | 301 | |
2024 | 283 | |
2025 | 252 | |
2026 | 234 | |
Subsequent years | 1,247 | |
Net Carrying Amount | $ 2,403 | $ 2,810 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Nov. 30, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Carrying value of investment | $ 222 | $ 222 | $ 207 | |||
Equity securities | 17 | 17 | 75 | |||
Gain on equity securities | 11 | $ 3 | ||||
Equity investments without readily determinable market value | 38 | 38 | $ 36 | |||
Proceeds from sale of other investments | 62 | |||||
Loss on sale of other investments | (4) | |||||
Marsh India Insurance Brokers Limited | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Percentage of ownership in equity investment | 92% | 49% | ||||
Private Insurance and Consulting | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Carrying value of investment | 57 | 57 | $ 58 | |||
Private Equity Funds | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Carrying value of investment | 165 | 165 | $ 149 | |||
Equity method income | $ 3 | $ 13 | 23 | $ 40 | ||
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Proceeds from contingent purchase consideration, asset | $ 3 | |||||
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 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Financial instruments owned: | ||
Exchange traded equity securities | $ 17 | $ 75 |
Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Total assets measured at fair value | 248 | 691 |
Fiduciary Assets: | ||
Fiduciary assets | 126 | 582 |
Liabilities: | ||
Total liabilities measured at fair value | 328 | 352 |
Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Total assets measured at fair value | 246 | 678 |
Fiduciary Assets: | ||
Fiduciary assets | 126 | 582 |
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 | 0 | 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 | 2 | 5 |
Fiduciary Assets: | ||
Fiduciary assets | 0 | 0 |
Liabilities: | ||
Total liabilities measured at fair value | 328 | 352 |
U.S. treasury bills | Fair Value, Measurements, Recurring | ||
Fiduciary Assets: | ||
Fiduciary assets | 0 | 55 |
U.S. treasury bills | Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fiduciary Assets: | ||
Fiduciary assets | 0 | 55 |
U.S. treasury bills | Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fiduciary Assets: | ||
Fiduciary assets | 0 | 0 |
U.S. 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 | 126 | 527 |
Money market funds | Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fiduciary Assets: | ||
Fiduciary assets | 126 | 527 |
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 | 4 | 61 |
Mutual funds | 153 | 192 |
Other equity investment | 0 | 8 |
Other Assets | Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Exchange traded equity securities | 4 | 61 |
Mutual funds | 153 | 192 |
Other equity investment | 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 investment | 0 | 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 investment | 0 | 0 |
Cash and Cash Equivalents | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Money market funds | 89 | 425 |
Cash and Cash Equivalents | Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Money market funds | 89 | 425 |
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 assets | 2 | 5 |
Other Receivables | Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Contingent purchase consideration assets | 0 | 0 |
Other Receivables | Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Contingent purchase consideration assets | 0 | 0 |
Other Receivables | Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Financial instruments owned: | ||
Contingent purchase consideration assets | 2 | 5 |
Accounts Payable and Accrued Liabilities and Other Liabilities | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent purchase consideration liability | 328 | 352 |
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 | $ 328 | $ 352 |
Fair Value Measurements (Change
Fair Value Measurements (Changes In Fair Value Of Level 3 Liabilities Representing Acquisition Related Contingent Consideration) (Details) - Contingent Consideration - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | $ 345 | $ 340 | $ 352 | $ 243 |
Net additions | 4 | 1 | 4 | 99 |
Payments | (32) | (54) | (66) | (72) |
Revaluation impact | 11 | 18 | 38 | 35 |
Other | 0 | (2) | 0 | (2) |
Balance at September 30, | $ 328 | $ 303 | $ 328 | $ 303 |
Derivatives (Details)
Derivatives (Details) - 9 months ended Sep. 30, 2022 $ in Millions | USD ($) | EUR (€) |
Derivative [Line Items] | ||
Net investment hedge, threshold percentage of the equity balance | 80% | |
Decrease in net investment hedges | $ | $ 179 | |
Net Investment Hedging | ||
Derivative [Line Items] | ||
Derivative, notional amount | € | € 1,100,000,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, lease not yet commenced, amount | $ 39 |
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 |
Leases (Lease Cost and Addition
Leases (Lease Cost and Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 84 | $ 93 | $ 262 | $ 282 |
Short-term lease cost | 1 | 1 | 3 | 4 |
Variable lease cost | 35 | 38 | 99 | 101 |
Sublease income | (3) | (3) | (12) | (16) |
Net lease cost | $ 117 | $ 129 | 352 | 371 |
Operating cash outflows from operating leases | 286 | 310 | ||
Right of use assets obtained in exchange for new operating lease liabilities | $ 148 | $ 282 | ||
Real Estate Lease | ||||
Lessee, Lease, Description [Line Items] | ||||
Weighted-average remaining lease term | 8 years 4 months 24 days | 9 years | 8 years 4 months 24 days | 9 years |
Weighted-average discount rate, percent | 2.87% | 2.75% | 2.87% | 2.75% |
Leases (Future Minimum Payments
Leases (Future Minimum Payments for Operating Leases) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Remainder of 2022 | $ 90 | |
2023 | 341 | |
2024 | 302 | |
2025 | 272 | |
2026 | 250 | |
2027 | 216 | |
Subsequent years | 690 | |
Total future lease payments | 2,161 | |
Less: Imputed interest | (243) | |
Total | 1,918 | |
Current lease liabilities | 298 | $ 332 |
Long-term lease liabilities | $ 1,620 | $ 1,880 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Contributions by employer | $ 28 | $ 33 | $ 141 | $ 90 | |
Estimated future employer contributions in current fiscal year | 28 | 28 | |||
United States | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, cost recognized | 39 | 37 | 122 | 115 | |
United Kingdom | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, cost recognized | $ 31 | $ 33 | $ 108 | $ 106 | |
United Kingdom | Non-U.S. Plans | Geographic Concentration Risk | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Concentration risk percentage | 81% | ||||
Equity Funds | United States | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation, percentage | 60% | 60% | |||
Actual asset allocation percentage of equity | 61% | 61% | |||
Equity Funds | United Kingdom | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation, percentage | 14% | 14% | |||
Actual asset allocation percentage of equity | 17% | 17% | |||
Fixed Income Funds | United States | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation, percentage | 40% | 40% | |||
Actual asset allocation percentage of equity | 39% | 39% | |||
Fixed Income Funds | United Kingdom | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation, percentage | 86% | 86% | |||
Actual asset allocation percentage of equity | 83% | 83% |
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) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 6 | $ 9 | $ 21 | $ 29 |
Interest cost | 95 | 87 | 294 | 258 |
Expected return on plan assets | (191) | (208) | (590) | (627) |
Recognized actuarial loss | 38 | 52 | 114 | 155 |
Net periodic credit | (161) | (185) | ||
Settlement loss | 2 | 2 | ||
Net benefit credit | (52) | (60) | (159) | (183) |
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 48 | 47 | 145 | 139 |
Expected return on plan assets | (85) | (82) | (253) | (245) |
Recognized actuarial loss | 19 | 22 | 56 | 67 |
Net periodic credit | (18) | (13) | (52) | (39) |
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 6 | 9 | 21 | 29 |
Interest cost | 47 | 40 | 149 | 119 |
Expected return on plan assets | (106) | (126) | (337) | (382) |
Recognized actuarial loss | 19 | 30 | 58 | 88 |
Net periodic credit | (109) | (146) | ||
Settlement loss | 2 | 2 | ||
Net benefit credit | $ (34) | $ (47) | $ (107) | $ (144) |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Compensation and benefits expense | $ (791) | $ (740) | $ (3,600) | $ (3,326) |
Other net benefit credit | (57) | (69) | (178) | (211) |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Compensation and benefits expense | 6 | 9 | 21 | 29 |
Other net benefit credit | (58) | (69) | (180) | (212) |
Net benefit credit | $ (52) | $ (60) | $ (159) | $ (183) |
Retirement Benefits (Schedule_3
Retirement Benefits (Schedule Of Defined Benefit Plan Weighted Average Assumption Used In Calculating Net Periodic Benefit Cost) (Details) - Pension Benefits | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Weighted average assumptions: | ||
Expected return on plan assets | 4.56% | 4.72% |
Discount rate | 2.28% | 1.92% |
Rate of compensation increase | 2.16% | 1.85% |
Debt (Schedule Of Outstanding D
Debt (Schedule Of Outstanding Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Apr. 09, 2021 | Apr. 08, 2021 |
Debt Instrument [Line Items] | ||||
Current portion of long-term debt | $ 367 | $ 17 | ||
Short-term debt | 967 | 17 | ||
Long-term debt | 10,766 | 10,950 | ||
Long-term debt, net | 10,399 | 10,933 | ||
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | 600 | 0 | $ 2,000 | $ 1,500 |
3.30% Senior Debt Obligations Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 350 | 349 | ||
Interest rate | 3.30% | |||
4.05% Senior Debt Obligations Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 250 | 249 | ||
Interest rate | 4.05% | |||
3.50% Senior Debt Obligations Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 599 | 599 | ||
Interest rate | 3.50% | |||
3.875% Senior Debt Obligations Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 998 | 997 | ||
Interest rate | 3.875% | |||
3.50% Senior Debt Obligations Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 499 | 498 | ||
Interest rate | 3.50% | |||
1.349% Senior Debt Obligations Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 535 | 629 | ||
Interest rate | 1.349% | |||
3.75% Senior Debt Obligations Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 598 | 598 | ||
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 | $ 532 | 614 | ||
Interest rate | 1.979% | |||
2.250% Senior Debt Obligations Due 2030 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 740 | 739 | ||
Interest rate | 2.25% | |||
2.375% Senior Debt Obligations Due 2031 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 396 | $ 397 | ||
Interest rate | 2.375% | 2.375% | ||
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 | $ 593 | 593 | ||
Interest rate | 4.20% | |||
4.90% Senior Debt Obligations Due 2049 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,238 | 1,238 | ||
Interest rate | 4.90% | |||
2.90% Senior Debt Obligations Due 2051 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 346 | $ 346 | ||
Interest rate | 2.90% | 2.90% | ||
5.70% Mortgage Due 2035 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 305 | $ 316 | ||
Interest rate | 5.70% | |||
Other | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 2 | $ 3 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||||
Apr. 15, 2021 | Dec. 31, 2021 | Sep. 30, 2022 | May 31, 2022 | Apr. 09, 2021 | Apr. 08, 2021 | |
Debt Instrument [Line Items] | ||||||
Commercial paper outstanding | $ 600,000,000 | |||||
Other Debt Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit | $ 0 | 0 | ||||
Debt instrument, unused borrowing capacity | $ 508,000,000 | $ 507,000,000 | ||||
2.375% Senior Debt Obligations Due 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.375% | 2.375% | ||||
2.90% Senior Debt Obligations Due 2051 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.90% | 2.90% | ||||
2.75% Senior Debt Obligations Due January 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.75% | |||||
Repayments of debt | $ 500,000,000 | |||||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Short-term debt | 0 | $ 600,000,000 | $ 2,000,000,000 | $ 1,500,000,000 | ||
Effective interest rate (percent) | 3.39% | |||||
Revolving Credit Facility | Uncommitted Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt facilities, maximum borrowing capacity | $ 250,000,000 | |||||
Long-term line of credit | $ 0 | |||||
Revolving Credit Facility | New Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt facilities, maximum borrowing capacity | $ 2,800,000,000 | |||||
Term of debt | 5 years | |||||
Long-term line of credit | $ 0 | |||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 500,000,000 | |||||
Senior Notes | 2.375% Senior Debt Obligations Due 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | 400,000,000 | |||||
Senior Notes | 2.90% Senior Debt Obligations Due 2051 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | $ 350,000,000 |
Debt (Estimated Fair Value of S
Debt (Estimated Fair Value of Significant Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt | $ 967 | $ 17 |
Long-term debt | 10,399 | 10,933 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt | 965 | 17 |
Long-term debt | $ 9,434 | $ 12,466 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) - Jardine Lloyd Thompson Group plc - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | $ 96 | $ 163 | |
Acquisition Related | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | $ 38 | 96 | |
Acquisition Related | Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | 15 | 36 | |
Acquisition Related | Risk and Insurance Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | 18 | 44 | |
Acquisition Related | Consulting | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | $ 5 | $ 16 |
Restructuring Costs (Restructur
Restructuring Costs (Restructuring Activities) (Details) - Jardine Lloyd Thompson Group plc - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | $ 69 | $ 106 |
Restructuring charges | 96 | 163 |
Cash payments | (124) | (178) |
Non-cash charges | (7) | (22) |
Liability at end of period | 34 | 69 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | 35 | 52 |
Restructuring charges | 6 | 38 |
Cash payments | (31) | (55) |
Non-cash charges | 0 | 0 |
Liability at end of period | 10 | 35 |
Real Estate Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | 34 | 51 |
Restructuring charges | 12 | 31 |
Cash payments | (18) | (26) |
Non-cash charges | (5) | (22) |
Liability at end of period | 23 | 34 |
Information Technology | ||
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | 0 | 2 |
Restructuring charges | 7 | 23 |
Cash payments | (5) | (25) |
Non-cash charges | (2) | 0 |
Liability at end of period | 0 | 0 |
Consulting and Other Outside Services | ||
Restructuring Reserve [Roll Forward] | ||
Liability at beginning of period | 0 | 1 |
Restructuring charges | 71 | 71 |
Cash payments | (70) | (72) |
Non-cash charges | 0 | 0 |
Liability at end of period | $ 1 | $ 0 |
Common Stock (Details)
Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Jul. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 23, 2022 | Dec. 31, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock repurchased (in shares) | 5.3 | |||||
Purchase of treasury shares | $ 1,600,000,000 | $ 734,000,000 | ||||
Stock-based compensation, shares issued during period (in shares) | 3.1 | 3.1 | ||||
Dividends per share (usd per share) | $ 0.590 | |||||
Increase to quarterly dividend, percent | 10% | |||||
Approved quarterly dividend (usd per share) | $ 0.590 | $ 0.535 | ||||
Common Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Share repurchases program, authorized amount (up to) | $ 5,000,000,000 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 4,700,000,000 | $ 4,700,000,000 | $ 1,300,000,000 | |||
Common stock repurchased (in shares) | 10.1 |
Claims, Lawsuits And Other Co_2
Claims, Lawsuits And Other Contingencies (Details) - Jardine Lloyd Thompson Group plc case in Thousands, £ in Millions, $ in Millions | 1 Months Ended | 48 Months Ended | |||||||||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 GBP (£) | May 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2018 case | Sep. 30, 2022 USD ($) | Sep. 30, 2022 GBP (£) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 GBP (£) | Feb. 28, 2019 USD ($) | Feb. 28, 2019 GBP (£) | |
Loss Contingencies [Line Items] | |||||||||||
Individual cases analyzed | case | 14 | ||||||||||
Loss contingency accrual | $ 6 | £ 6 | $ 210 | £ 155 | $ 77 | £ 59 | |||||
United States | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, damages sought, value | $ 29 | ||||||||||
Columbia | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss contingency, damages sought, value | $ 2 | ||||||||||
Loss contingency, loss in period | $ 11 | £ 7.9 |
Segment Information (Selected I
Segment Information (Selected Information And Details For MMC's Operating Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 4,770 | $ 4,583 | $ 15,698 | $ 14,683 | |
Operating Income (Loss) | 791 | 740 | 3,600 | 3,326 | |
Loss on deconsolidation of russian businesses | $ 39 | 39 | 0 | ||
Risk and Insurance Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,838 | 2,670 | 9,700 | 9,036 | |
Interest on fiduciary funds | 40 | 4 | 57 | 12 | |
Consulting | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,951 | 1,925 | 6,045 | 5,690 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 4,789 | 4,595 | 15,745 | 14,726 | |
Operating Income (Loss) | 879 | 807 | 3,834 | 3,522 | |
Operating Segments | Risk and Insurance Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,838 | 2,670 | 9,700 | 9,036 | |
Operating Income (Loss) | 529 | 403 | 2,617 | 2,413 | |
Interest on fiduciary funds | 40 | 4 | 57 | 12 | |
Equity method income (loss) | 8 | 9 | 25 | ||
Gain (loss) on consolidation of business | 52 | ||||
Loss on deconsolidation of russian businesses | 27 | ||||
Operating Segments | Consulting | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,951 | 1,925 | 6,045 | 5,690 | |
Operating Income (Loss) | 350 | 404 | 1,217 | 1,109 | |
Loss on deconsolidation of russian businesses | 12 | ||||
Corporate/Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | (19) | (12) | (47) | (43) | |
Operating Income (Loss) | (88) | (67) | (234) | (196) | |
Intersegment Eliminations | Risk and Insurance Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 5 | 5 | |||
Intersegment Eliminations | Consulting | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 19 | $ 11 | 42 | $ 38 | |
Gain on disposal | $ 112 |
Segment Information (Details of
Segment Information (Details of Operating Segment Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 4,770 | $ 4,583 | $ 15,698 | $ 14,683 |
Risk and Insurance Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,838 | 2,670 | 9,700 | 9,036 |
Risk and Insurance Services | Marsh | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,470 | 2,352 | 7,794 | 7,327 |
Risk and Insurance Services | Guy Carpenter | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 328 | 314 | 1,849 | 1,697 |
Consulting | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,951 | 1,925 | 6,045 | 5,690 |
Consulting | Mercer | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,284 | 1,315 | 4,016 | 3,877 |
Consulting | Oliver Wyman Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 667 | 610 | 2,029 | 1,813 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4,789 | 4,595 | 15,745 | 14,726 |
Operating Segments | Risk and Insurance Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,838 | 2,670 | 9,700 | 9,036 |
Operating Segments | Risk and Insurance Services | Marsh | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,497 | 2,355 | 7,833 | 7,336 |
Operating Segments | Risk and Insurance Services | Guy Carpenter | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 341 | 315 | 1,867 | 1,700 |
Operating Segments | Consulting | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,951 | 1,925 | 6,045 | 5,690 |
Operating Segments | Consulting | Mercer | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,284 | 1,315 | 4,016 | 3,877 |
Operating Segments | Consulting | Oliver Wyman Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 667 | 610 | 2,029 | 1,813 |
Corporate/Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ (19) | $ (12) | $ (47) | $ (43) |