Exhibit 99.1
AMENDED ITEM 6. SELECTED FINANCIAL DATA OF MMC’S ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007.
Marsh & McLennan Companies, Inc. and Subsidiaries
FIVE-YEAR STATISTICAL SUMMARY OF OPERATIONS
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For the Years Ended December 31, (In millions, except per share figures) | | 2007 | | | 2006 | | | 2005 | | | 2004 | | | 2003 | | | Compound Growth Rate 2002-2007 | |
Revenue | | $ | 11,177 | | | $ | 10,340 | | | $ | 9,899 | | | $ | 9,873 | | | $ | 9,148 | | | 7 | % |
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Expenses: | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and Benefits | | | 7,030 | | | | 6,515 | | | | 6,327 | | | | 6,073 | | | | 5,094 | | | 10 | % |
Other Operating Expenses | | | 3,301 | | | | 2,877 | | | | 3,135 | | | | 2,853 | | | | 2,226 | | | 12 | % |
Regulatory and Other Settlements | | | — | | | | — | | | | 30 | | | | 618 | | | | — | | | | |
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Total Expenses | | | 10,331 | | | | 9,392 | | | | 9,492 | | | | 9,544 | | | | 7,320 | | | 10 | % |
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Operating Income | | | 846 | (a) | | | 948 | (a) | | | 407 | (a) | | | 329 | | | | 1,828 | | | (11 | )% |
Interest Income | | | 95 | | | | 60 | | | | 44 | | | | 20 | | | | 23 | | | | |
Interest Expense | | | (267 | ) | | | (303 | ) | | | (332 | ) | | | (219 | ) | | | (185 | ) | | | |
Investment Income (Loss) (b) | | | 173 | | | | 207 | | | | 183 | | | | 153 | | | | 105 | | | 8 | % |
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Income Before Income Taxes and Minority Interest | | | 847 | | | | 912 | | | | 302 | | | | 283 | | | | 1,771 | | | (11 | )% |
Income Taxes | | | 295 | | | | 272 | | | | 95 | | | | 100 | | | | 555 | | | | |
Minority Interest, Net of Tax | | | 14 | | | | 8 | | | | 6 | | | | 8 | | | | 8 | | | | |
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Income From Continuing Operations | | | 538 | | | | 632 | | | | 201 | | | | 175 | | | | 1,208 | | | (12 | )% |
Discontinued Operations, Net of Tax | | | 1,937 | | | | 358 | | | | 203 | | | | 1 | | | | 332 | | | 39 | % |
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Net Income | | $ | 2,475 | | | $ | 990 | | | $ | 404 | | | $ | 176 | | | $ | 1,540 | | | 13 | % |
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Basic Income Per Share Information: | | | | | | | | | | | | | | | | | | | | | | | |
Income From Continuing Operations | | $ | 1.00 | | | $ | 1.15 | | | $ | 0.37 | | | $ | 0.33 | | | $ | 2.27 | | | (11 | )% |
Income From Discontinued Operations | | $ | 3.60 | | | $ | 0.65 | | | $ | 0.38 | | | $ | — | | | $ | 0.62 | | | 40 | % |
Net Income | | $ | 4.60 | | | $ | 1.80 | | | $ | 0.75 | | | $ | 0.33 | | | $ | 2.89 | | | 13 | % |
Average Number of Shares Outstanding | | | 539 | | | | 549 | | | | 538 | | | | 526 | | | | 533 | | | | |
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Diluted Income Per Share Information: | | | | | | | | | | | | | | | | | | | | | | | |
Income From Continuing Operations | | $ | 0.99 | | | $ | 1.14 | | | $ | 0.37 | | | $ | 0.33 | | | $ | 2.21 | | | (11 | )% |
Income From Discontinued Operations | | $ | 3.54 | | | $ | 0.62 | | | $ | 0.37 | | | $ | — | | | $ | 0.60 | | | 40 | % |
Net Income | | $ | 4.53 | | | $ | 1.76 | | | $ | 0.74 | | | $ | 0.33 | | | $ | 2.81 | | | 13 | % |
Average Number of Shares Outstanding | | | 546 | | | | 557 | | | | 543 | | | | 535 | | | | 548 | | | | |
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Dividends Paid Per Share | | $ | 0.76 | | | $ | 0.68 | | | $ | 0.68 | | | $ | 1.30 | | | $ | 1.18 | | | (7 | )% |
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Return on Average Stockholders’ Equity | | | 36 | % | | | 18 | % | | | 8 | % | | | 3 | % | | | 29 | % | | | |
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Year-end Financial Position: | | | | | | | | | | | | | | | | | | | | | | | |
Working capital | | $ | 1,961 | | | $ | 1,058 | | | $ | 1,390 | | | $ | (258 | ) | | $ | 920 | | | | |
Total assets | | $ | 17,359 | | | $ | 18,137 | | | $ | 17,892 | | | $ | 18,498 | | | $ | 15,053 | | | | |
Long-term debt | | $ | 3,604 | | | $ | 3,860 | | | $ | 5,044 | | | $ | 4,691 | | | $ | 2,910 | | | | |
Stockholders’ equity | | $ | 7,822 | | | $ | 5,819 | | | $ | 5,360 | | | $ | 5,056 | | | $ | 5,451 | | | | |
Total shares outstanding (net of treasury shares) | | | 520 | | | | 552 | | | | 546 | | | | 527 | | | | 527 | | | | |
Other Information: | | | | | | | | | | | | | | | | | | | | | | | |
Number of employees | | | 56,100 | | | | 52,600 | | | | 51,900 | | | | 59,300 | | | | 55,200 | | | | |
Stock price ranges– | | | | | | | | | | | | | | | | | | | | | | | |
U.S. exchanges – High | | $ | 33.90 | | | $ | 32.73 | | | $ | 34.25 | | | $ | 49.69 | | | $ | 54.97 | | | | |
– Low | | $ | 23.12 | | | $ | 24.00 | | | $ | 26.67 | | | $ | 22.75 | | | $ | 38.27 | | | | |
(a) | Includes net restructuring costs of $98 million, $87 million and $317 million in 2007, 2006 and 2005, respectively. |
(b) | Investment gains and losses derived from investments strategically linked to MMC’s operating companies, predominantly related to Risk Capital Holdings are now presented outside MMC’s operating income. |
See Management’s Discussion and Analysis of Financial Condition and Results of Operations, appearing under Part II, Item 7 of this report, for discussion of significant items affecting our results of operations in 2007, 2006 and 2005.
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