Marsh & McLennan Companies (MMC) 10-K 26 Feb 10 2009 FY Annual report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenue	$10,493	$11,518	$11,135
Expense:
Compensation and benefits	6,484	7,181	6,937
Other operating expenses	3,185	3,549	3,344
Goodwill impairment charges	315	540	0
Operating expenses	9,984	11,270	10,281
Operating income	509	248	854
Interest income	17	48	95
Interest expense	(241)	(220)	(267)
Investment income (loss)	(2)	(12)	173
Income before income taxes	283	64	855
Income taxes	41	133	298
Income (loss) from continuing operations	242	(69)	557
Discontinued operations, net of tax	0	7	1,932
Net income (loss)	242	(62)	2,489
Less: net income attributable to non-controlling interests	15	11	14
Net income (loss) attributable to MMC	$227	($73)	$2,475
Basic net income (loss) per share
-Continuing operations	0.43	-0.14	0.98
-Net income (loss) attributable to MMC	0.43	-0.13	4.49
Diluted net income (loss) per share
-Continuing operations	0.43	-0.15	0.98
-Net income (loss) attributable to MMC	0.42	-0.14	4.45
Average number of shares outstanding- Basic	522	514	539
- Diluted	524	514	542
Shares outstanding at December 31,	530	514	520

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$1,777	$1,685
Receivables
Commissions and fees	2,429	2,418
Advanced premiums and claims	86	86
Other	457	354
Commissions, Fees, Premiums, Claims, and Other Receivables, Gross, Total	2,972	2,858
Less-allowance for doubtful accounts and cancellations	(117)	(103)
Net receivables	2,855	2,755
Other current assets	299	344
Total current assets	4,931	4,784
Goodwill and intangible assets	7,173	7,163
Fixed assets, net	952	969
Pension related assets	94	150
Deferred tax assets	1,242	1,146
Other assets	945	994
Assets, Total	15,337	15,206
Current liabilities:
Short-term debt	558	408
Accounts payable and accrued liabilities	1,826	1,688
Accrued compensation and employee benefits	1,319	1,224
Accrued income taxes	0	66
Total current liabilities	3,703	3,386
Fiduciary liabilities	3,559	3,297
Less-cash and investments held in a fiduciary capacity	(3,559)	(3,297)
Fiduciary liabilities net of cash and investments held in a fiduciary capacity, Total	0	0
Long-term debt	3,034	3,194
Retirement and postemployment benefits	1,184	1,217
Liability for errors and omissions	518	512
Other liabilities	1,035	1,137
Stockholders' 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 in 2009 and 2008	561	561
Additional paid-in capital	1,211	1,245
Retained earnings	7,033	7,237
Accumulated other comprehensive loss	(2,171)	(2,098)
Non-controlling interests	35	38
Stockholders Equity Subtotal Before Treasury Stock, Total	6,669	6,983
Less-treasury shares at cost, 30,967,116 in 2009 and 46,375,622 in 2008	(806)	(1,223)
Total stockholders' equity	5,863	5,760
Liabilities and Stockholders' Equity, Total	$15,337	$15,206

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
	Dec. 31, 2009	Dec. 31, 2008
Preferred stock, par value	$1	$1
Preferred stock, authorized	6,000,000	6,000,000
Preferred stock, issued	0	0
Common stock, par value	$1	$1
Common stock, authorized	1,600,000,000	1,600,000,000
Common stock, Issued	560,641,640	560,641,640
Treasury shares, shares	30,967,116	46,375,622

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating cash flows:
Net income (loss)	$242	($62)	$2,489
Adjustments to reconcile net income (loss) to cash provided by operations:
Goodwill impairment charge	315	540	0
Depreciation and amortization of fixed assets and capitalized software	307	332	366
Amortization of intangible assets	58	72	76
Provision for deferred income taxes	42	103	12
(Gains)/losses on investments	8	20	(176)
(Gains)/losses on disposition of assets	56	52	(1,833)
Accrual of stock based compensation	11	34	71
Changes in assets and liabilities:
Net receivables	(81)	270	(321)
Other current assets	(28)	(18)	370
Other assets	118	(106)	49
Accounts payable and accrued liabilities	124	(149)	(350)
Accrued compensation and employee benefits	92	(76)	(28)
Accrued income taxes	(95)	(159)	(1,141)
Other liabilities	(488)	(119)	64
Effect of exchange rate changes	(41)	206	49
Net cash provided by (used for) operations	640	940	(303)
Financing cash flows:
Proceeds from issuance of debt	398	0	3
Repayments of debt	(408)	(260)	(1,120)
Purchase of non-controlling interests	(24)	0	0
Purchase of treasury shares	(33)	(39)	(1,309)
Issuance of common stock	34	68	113
Dividends paid	(431)	(412)	(413)
Net cash used for financing activities	(464)	(643)	(2,726)
Investing cash flows:
Capital expenditures	(305)	(386)	(378)
Net sales of long-term investments	53	97	211
Proceeds from sales of fixed assets	7	11	11
Dispositions	75	56	3,357
Acquisitions	(73)	(126)	(206)
Other, net	7	0	1
Net cash (used for) provided by investing activities	(236)	(348)	2,996
Effect of exchange rate changes on cash and cash equivalents	152	(397)	77
Increase (decrease) in cash and cash equivalents	92	(448)	44
Cash and cash equivalents at beginning of period	1,685	2,133	2,089
Cash and cash equivalents at end of period	$1,777	$1,685	$2,133

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss		Non-Controlling Interests	Total
Balance, beginning of year at Dec. 31, 2006	$561	$1,138	$5,691	($1,272)	($299)	$23
Net income (loss) attributable to MMC (a)			2,475			14	2,489
Change in accrued stock compensation costs		155
Purchase of treasury shares					(1,300)
Foreign currency translation adjustments (b)				235
Dividend equivalents paid			(8)
Issuance of shares under stock compensation plans and employee stock purchase plans		(51)			237
Unrealized investment holding (losses) gains, net of reclassification adjustments (c)				(22)
Dividends declared-(per share amounts: $.80 in 2009 and 2008, $.76 in 2007)			(413)
Net changes under benefit plans, net of tax (d)				708
Cumulative charge from adoption of accounting for uncertain tax positions			(13)
Purchase of subsidiary shares from non-controlling interests		0				0
Other changes						(6)
Issuance of shares for acquisitions		0			0
Balance, end of period at Dec. 31, 2007	561	1,242	7,732	(351)	(1,362)	31	7,853
Net income (loss) attributable to MMC (a)			(73)			11	(62)
Change in accrued stock compensation costs		11
Purchase of treasury shares					0
Foreign currency translation adjustments (b)				(770)
Dividend equivalents paid			(10)
Issuance of shares under stock compensation plans and employee stock purchase plans		(8)			139
Unrealized investment holding (losses) gains, net of reclassification adjustments (c)				11
Dividends declared-(per share amounts: $.80 in 2009 and 2008, $.76 in 2007)			(412)
Net changes under benefit plans, net of tax (d)				(988)
Cumulative charge from adoption of accounting for uncertain tax positions			0
Purchase of subsidiary shares from non-controlling interests		0				0
Other changes						(4)
Issuance of shares for acquisitions		0			0
Balance, end of period at Dec. 31, 2008	561	1,245	7,237	(2,098)	(1,223)	38	5,760
Net income (loss) attributable to MMC (a)			227			15	242
Change in accrued stock compensation costs		54
Purchase of treasury shares					0
Foreign currency translation adjustments (b)				346
Dividend equivalents paid			(14)
Issuance of shares under stock compensation plans and employee stock purchase plans		2			136
Unrealized investment holding (losses) gains, net of reclassification adjustments (c)				(2)
Dividends declared-(per share amounts: $.80 in 2009 and 2008, $.76 in 2007)			(417)
Net changes under benefit plans, net of tax (d)				(417)
Cumulative charge from adoption of accounting for uncertain tax positions			0
Purchase of subsidiary shares from non-controlling interests		(38)				(9)
Other changes						(9)
Issuance of shares for acquisitions		(52)			281
Balance, end of period at Dec. 31, 2009	$561	$1,211	$7,033	($2,171)	($806)	$35	$5,863

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (Retained Earnings, USD $)
	Total
Dividends declared, per share	0.76
Dividends declared, per share	0.8
Dividends declared, per share	0.8

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies	1.Summary of Significant Accounting Policies Nature of Operations:Marsh McLennan Companies, Inc. (MMC), a global professional services firm, is organized based on the different services that it offers. Under this organizational structure, MMCs three business segments are Risk and Insurance Services, Consulting, and Risk Consulting Technology. As discussed in Note 5, MMC disposed of several businesses from 2007 through 2009, which are classified as discontinued operations in these financial statements. The Risk and Insurance Services segment provides risk management and insurance broking, reinsurance broking and insurance program management services for businesses, public entities, insurance companies, associations, professional services organizations, and private clients. MMC conducts business in this segment primarily through Marsh and Guy Carpenter. In September 2009, Marsh acquired International Advisory Services, Ltd., the largest independent manager of captives and third-party insurance companies in Bermuda. Also, in December, Marsh acquired the NIA Group, LLC, one of the largest independent insurance agencies in the Northeast and the 34th largest agency in the U.S. In April 2009, Guy Carpenter completed the acquisition of John B. Collins Associates, Inc., previously the fifth-largest reinsurance intermediary in the U.S. and seventh-largest in the world. Also, in October 2009, Guy Carpenter completed the acquisition of London-based specialty reinsurance broker Rattner Mackenzie Limited from HCC Insurance Holdings, Inc. The Consulting segment provides advice and services to the managements of organizations in the areas of human resource consulting, comprising retirement and investments, health and benefits, outsourcing and talent; and strategy and risk management consulting, comprising management, economic and brand consulting. MMC conducts business in this segment through Mercer and the Oliver Wyman Group. The Risk Consulting Technology segment provides various risk consulting and related risk mitigation services to corporate, government, institutional and individual clients including consulting services and security services; and technology-enabled services. MMC conducts business in this segment through Kroll. During the second quarter of 2009, Kroll sold Kroll Government Services (KGS), which has been classified as a discontinued operation. In the fourth quarter of 2008, the principal operations within the corporate advisory and restructuring business were divested. Additionally, two small residual corporate advisory and restructuring businesses were exited in the first quarter of 2009. Based on the terms and conditions of the divestures, MMC determined it has continuing involvement in the divested businesses, as that term is used in SEC Staff Accounting Bulletin Topic 5e. Therefore, classification of the corporate advisory and restructuring businesses as discontinued operations is not appropriate and their financial results in the current and prior periods are included in operating income. In February 2010, Kroll sold Kroll Laboratory Specialists, its substance abuse testing business for $110 million. The disposal tran

Supplemental Disclosures

Supplemental Disclosures
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Disclosures	2.Supplemental Disclosures The following schedule provides additional information concerning acquisitions, interest and income taxes paid: For the Years Ended December31, (In millions of dollars) 2009 2008 2007 Purchase acquisitions: Assets acquired, excluding cash $ 420 $ 249 $ 173 Liabilities assumed (24 ) (78 ) Shares issued (10.7 million shares) (229 ) Issuance of debt and other obligations (100 ) (45 ) (11 ) Deferred purchase consideration 6 44 Net cash outflow for acquisitions $ 73 $ 126 $ 206 Interest paid $ 230 $ 216 $ 290 Income taxes paid $ 219 $ 200 $ 1,192 MMC had non-cash issuances of common stock under its share-based payment plan of $123 million, $103 million and $82 million at December31, 2009, 2008 and 2007, respectively. The consolidated cash flow statements include the cash flow impact of discontinued operations in each cash flow category. The cash flow impact of discontinued operations from the operating, financing and investing cash flow categories is as follows: For the Years Ended December31, (In millions of dollars) 2009 2008 2007 Net cash (used for) provided by operations $ (10 ) $ 30 $ 21 Net cash used for financing activities $ $ $ (8 ) Net cash provided by investing activities $ $ $ 8 The information above excludes the cash flow impacts of the actual disposal transaction related to discontinued operations because MMC believes the disposal transaction to be cash flows attributable to the parent company, arising from its decision to dispose of the discontinued operation. Cash provided by investing activities include $75 million primarily from the disposal of Kroll Government Services (KGS) in 2009, $56 million from the disposal of Mediservice and Kroll Crucible in 2008, and $3.4 billion from the disposal of Putnam in 2007. In the first quarter of 2009, MMC changed the presentation in its statement of cash flows for the issuance of certain equity shares related to employee stock compensation plans. Previously, such issuances were shown in the statements of cash flows as a reduction of cash from operating activities and a source of cash from financing activities. MMC determined that these issuances should be presented as non-cash items and that the presentation in the prior periods was not correct. The presentation in the accompanying statements of cash flows has been corrected to conform with the 2009 presentation, resulting in an increase in cash provided from operations (or decrease in cash used for operations in periods where there is a net cash use) and an increase in cash used for financing activities as follows: year ended December31, 2008$103 million; and year ended December31, 2007$82 million. An analysis of the allowance for doubtful accounts is as follows: For the Years Ended December31, (In millions of dollars) 2009 2008 2007 Balance at beginning

Other Comprehensive Income

Other Comprehensive Income (Loss)
	12 Months Ended Dec. 31, 2009 USD / shares
Other Comprehensive Income (Loss)	3.Other Comprehensive Income (Loss) The components of other comprehensive income (loss) are as follows: For the Years Ended December31, (In millions of dollars) 2009 2008 2007 Foreign currency translation adjustments $ 346 $ (770 ) $ 235 Unrealized investment holding (losses) gains, net of income taxes (1 ) 12 4 Less:Reclassification adjustment for realized gains included in net income, net of income tax liability of $1, $1 and $8 in 2009, 2008 and 2007, respectively (1 ) (1 ) (26 ) (Losses) gains related to pension/retiree plans (417 ) (988 ) 708 Other comprehensive (loss) income (73 ) (1,747 ) 921 Net income (loss) 242 (62 ) 2,489 Comprehensive income (loss) $ 169 $ (1,809 ) $ 3,410 Less: Comprehensive income attributable to non-controlling interests (15 ) (11 ) (14 ) Comprehensive income (loss) attributable to MMC $ 154 $ (1,820 ) $ 3,396 The components of accumulated other comprehensive income (loss) are as follows: December31, (In millions of dollars) 2009 2008 Foreign currency translation adjustments $ 89 $ (257 ) Net unrealized investment gains 23 25 Net charges related to pension / retiree plans (2,283 ) (1,866 ) $ (2,171 ) $ (2,098 )

Acquisitions

Acquisitions
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions	4.Acquisitions During 2009, the Company made six acquisitions in its Risk and Insurance Services segment. In April 2009, Guy Carpenter completed the acquisition of John B. Collins Associates, Inc., previously the fifth-largest reinsurance intermediary in the U.S. and seventh-largest in the world. The acquisition of Collins further strengthens Guy Carpenters capabilities in medical professional liability, agriculture, Florida property, Program and regional specialty lines of business. In July 2009, Marsh acquired RJ Neville and Associates, a boutique insurance and risk management firm based in Brisbane. The acquisition, which is part of a broader growth strategy, will build the firms book of business in the Brisbane area. In September 2009, Marsh completed the acquisition of International Advisory Services Ltd. (IAS), the largest independent manager of captive and third-party insurance companies in Bermuda. The acquisition strengthens Marshs position as a global leader in managing captive insurance companies and its rank as Bermudas largest captive management organization. In October 2009, Guy Carpenter acquired Rattner Mackenzie Limited, a reinsurance broker based in London. The move has been made in line with Guy Carpenters strategic growth approach whereby organic expansion is augmented by acquisitions. In November 2009, Marsh acquired Insurance Alliance, one of the largest independent insurance agencies in Texas. In December 2009, Marsh acquired The NIA Group, LLC, one of the largest independent insurance agencies in the Northeast and the 34th largest agency in the U.S. These transactions mark the beginning of planned strategic acquisitions as Marsh McLennan Agency builds a national business to serve the needs of small to mid-sized companies across the United States. Total purchase consideration for the aforementioned acquisitions was $414 million which consisted of cash paid of $85 million, the issuance of 10.7million shares amounting to $229 million and future payouts of $100 million. The preliminary allocation of purchase consideration noted above and contingent purchase consideration paid for prior acquisitions resulted in acquired goodwill and other intangible assets, amounting to $250 million and $137 million, respectively. Estimated fair values of assets acquired and liabilities assumed are subject to adjustment when purchase accounting is finalized. In the first quarter of 2009, MMC acquired the remaining minority interest of a previously majority owned entity for total purchase consideration of $47 million. MMC accounted for this acquisition under the new guidance for consolidations and non-controlling interests. This guidance requires that changes in a parents ownership interest while retaining financial controlling interest in a subsidiary be accounted for as an equity transaction. Stepping up the acquired assets to fair value or the recording of goodwill is not permitted. Therefore, MMC recorded a decrease to additional paid-in capital in 2009 of $38 million related to this transaction. Pending Acquisition In December 2009, Marsh announced it had reached agreement to acquire HSBC Insurance Brokers Ltd. T

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Discontinued Operations	5.Discontinued Operations In the second quarter of 2009, Kroll sold Kroll Government Services (KGS). The after-tax loss on the disposal of KGS and its results of operations for 2009, 2008 and 2007 are included in discontinued operations. In 2008, discontinued operations also includes Putnam, Mediservice and Kroll Crucible which are discussed in more detail below. With regard to Putnam, discontinued operations in 2008 includes (1)the impact of immaterial corrections and other adjustments to the fourth quarter of 2007 tax provision related to the transaction, (2)adjustments to the tax provision to reflect differences between tax returns filed in 2008 and the initial estimated provisions, and (3)interest on liabilities for certain tax-related indemnities provided as part of the transaction. In the first quarter of 2008, Marsh completed the sale of Mediservice, a claims administration operation in Brazil. The gain on this disposal, net of tax, is included in discontinued operations in 2008. In the third quarter of 2008, Kroll completed the sale of Kroll Crucible (Crucible), a division of its government services operation. The loss on this disposal, net of tax, is included in discontinued operations in 2008. In 2007, discontinued operations include the gain on the sale of Putnam as well as Putnams operating income through August2, 2007. As part of the disposal of Putnam, MMC provided indemnities to GWL with respect to certain Putnam-related litigation and regulatory matters described in Note 16, and certain indemnities related to contingent tax liabilities (the indemnified matters). MMC estimated the fair value of the indemnities based on a (i)probability weighted assessment of possible outcomes; or (ii)in circumstances where the probability or amounts of potential outcomes could not be determined, an analysis of similar but not identical circumstances prepared by an MMC-affiliated professional economic valuation firm. The amounts recognized are the greater of the estimated fair value of the indemnity or the amount required to be recorded per the guidelines for accounting for contingencies or the accounting for income taxes (for tax-related matters). The remaining liability related to these indemnities was approximately $192 million at December31, 2009. This liability considers the potential settlement amount as well as related defense costs. The matters for which indemnities have been provided are inherently uncertain as to their eventual outcome. The process of estimating fair value entails necessarily uncertain assumptions about such future outcomes. Consequently, the ultimate resolution of the matters for which indemnities have been provided may well vary significantly from the calculated liabilities. The indemnities described above do not have a stated expiration date. MMC is released from risk under the indemnity as the indemnified matters are settled or otherwise resolved. Since MMC is not released from risk under the indemnities simply based on the passage of time, future costs of settlements and/or legal fees related to the indemnified matters will be charged against the liability so long as they are consistent with the es

Goodwill and Other Intangibles

Goodwill and Other Intangibles
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Other Intangibles	6.Goodwill and Other Intangibles MMC is required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate impairment may have occurred. MMC performs the annual impairment test for each of its reporting units during the third quarter of each year. Fair values of the reporting units are estimated using a market approach or a discounted cash flow model. This fair value determination was categorized as level 3 in the fair value hierarchy. Carrying values for the reporting units are based on balances at the prior quarter end and include directly identified assets and liabilities as well as an allocation of those assets and liabilities not recorded at the reporting unit level. MMC completed its 2009 annual review in the third quarter of 2009 and concluded goodwill was not impaired. As previously reported, in the second quarter of 2009, Kroll completed the sale of KGS, its U.S. government security clearance screening business. As a result of the sale, MMC allocated goodwill between KGS (the portion of the reporting unit sold) and Kroll (the portion of the reporting unit retained), based on the relative fair value of the two units. In addition, as required under GAAP, MMC evaluated the portion of the reporting unit retained for potential impairment. Fair value was estimated using a market approach, based on managements latest projections and outlook for the businesses in the current environment. This fair value determination was categorized as level 3 in the fair value hierarchy. On the basis of the step one impairment test, MMC concluded that goodwill in the reporting unit was impaired. Due to the timing of the trigger event and subsequent completion of the step one test, MMC was unable to fully complete the required step two portion of the impairment assessment prior to the issuance of its second quarter 2009 financial statements. A step two impairment test is required to be completed after an impairment is indicated in a step one test and requires a complete re-valuation of all assets and liabilities of the reporting units in the same manner as a business combination. Based on a preliminary estimate of the step two assessment, MMC recorded a non-cash charge of $315 million in the second quarter of 2009 which represented managements best estimate of the goodwill impairment at June30, 2009. MMC finalized the second step of the goodwill assessment during the third quarter of 2009 and determined that no adjustment to the charge was required. In March 2008, MMC announced a management reorganization within the Risk Consulting Technology segment, whereby two separate units were formed, each reporting directly to MMCs Chief Executive Officer. These units are: (i)Kroll, which includes litigation support and data recovery, background screening, and risk mitigation and response; and (ii)Corporate Advisory and Restructuring. As a result of the management reorganization, MMC conducted an interim goodwill assessment for the new reporting units within the Risk Consulting Technology segment in the first quarter of 2008. Fair value was estimated using a market approach, based on ma

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes	7.Income Taxes Income before income taxes shown below is based on the geographic location to which such income is attributable. Although income taxes related to such income may be assessed in more than one jurisdiction, the income tax provision corresponds to the geographic location of the income. For the Years Ended December31, (In millions of dollars) 2009 2008 2007 Income before income taxes: U.S. $ (708 ) $ (854 ) $ 74 Other 991 918 781 $ 283 $ 64 $ 855 Income taxes: Current U.S. Federal $ (297 ) $ (69 ) $ (26 ) Other national governments 272 158 208 U.S. state and local 23 29 67 (2 ) 118 249 Deferred U.S. Federal 14 (45 ) 39 Other national governments 35 112 39 U.S. state and local (6 ) (52 ) (29 ) 43 15 49 Total income taxes $ 41 $ 133 $ 298 The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows: December31, (In millions of dollars) 2009 2008 Deferred tax assets: Accrued expenses not currently deductible $ 569 $ 586 Differences related to non-U.S. operations (a) 327 215 Accrued retirement postretirement benefitsnon-U.S. operations 80 91 Accrued retirement benefits U.S. 359 363 Net operating losses (b) 115 114 Income currently recognized for tax 67 60 Foreign tax credit carryforwards 60 Other 165 148 $ 1,742 $ 1,577 Deferred tax liabilities: Unrealized investment holding gains $ 12 $ 14 Differences related to non-U.S. operations 175 61 Depreciation and amortization 186 152 Other 20 57 $ 393 $ 284 (a) Net of valuation allowances of $3 million and $0, respectively. (b) Net of valuation allowances of $82 million and $54 million, respectively. December31, (In millions of dollars) 2009 2008 Balance sheet classifications: Current assets $ 107 $ 147 Other assets $ 1,242 $ 1,146 U.S. Federal income taxes are not provided on temporary differences with respect to investments in foreign subsidiaries that are essentially permanent in duration, which at December31, 2009 amounted to approximately $3.1 billion. The determination of the unrecognized deferred tax liability with respect to these investments is not practicable. A reconciliation from the U.S. Federal statutory income tax rate to MMCs effective income tax rate is shown below. For the Years Ended December31, 2009 2008 2007 % % % U.S. Federal statutory rate 35.0 35.0 35.0 U.S. state and local income taxesnet of U.S. Federal income tax benefit 3.5 (35.1 ) 1.3 Differences r

Retirement Benefits

Retirement Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Retirement Benefits	8.Retirement Benefits MMC maintains qualified and non-qualified defined benefit pension and defined contribution plans for its eligible U.S. employees and a variety of defined benefit and defined contribution plans for eligible non-U.S. employees. MMCs policy for funding its tax-qualified defined benefit pension plans is to contribute amounts at least sufficient to meet the funding requirements set forth in U.S. and applicable foreign laws. Combined U.S. and non-U.S. Plans The weighted average actuarial assumptions utilized for the U.S. and significant non-U.S. defined benefit plans as of the end of the year are as follows: Pension Benefits Postretirement Benefits 2009 2008 2009 2008 Weighted average assumptions: Discount rate (for expense) 6.4 % 6.1 % 6.7 % 6.5 % Expected return on plan assets 8.1 % 8.2 % Rate of compensation increase (for expense) 3.7 % 3.8 % Discount rate (for benefit obligation) 6.0 % 6.4 % 6.3 % 6.7 % Rate of compensation increase (for benefit obligation) 4.2 % 3.7 % MMC uses actuaries from Mercer, a subsidiary of the Company, to perform valuations of its pension plans. The long-term rate of return assumption is selected for each plan based on the facts and circumstances that exist as of the measurement date, and the specific portfolio mix of each plans assets. MMC utilizes a model developed by the Mercer actuaries to assist in the setting of this assumption. The model takes into account several factors, including: actual and target portfolio allocation; investment, administrative and trading expenses incurred directly by the plan trust; historical portfolio performance; relevant forward-looking economic analysis; and expected returns, variances and correlations for different asset classes. These measures are used to determine probabilities using standard statistical techniques to calculate a range of expected returns on the portfolio. MMC generally does not adjust the rate of return assumption from year to year if, at the measurement date, it is within the best estimate range, defined as between the 25th and 75th percentile of the expected long-term annual returns in accordance with the American Academy of Actuaries Pension Practice Council Note May 2001 Selecting and Documenting Investment Return Assumptions and consistent with Actuarial Standards of Practice No.27. The historical five- and ten-year average asset returns of each plan are also reviewed to ensure they are consistent and reasonable compared with the best estimate range. The expected return on plan assets is determined by applying the assumed long-term rate of return to the market-related value of plan assets. This market-related value recognizes investment gains or losses over a five-year period from the year in which they occur. Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return based on the market value of assets. Since the market-related value of assets recognizes g

Stock Benefit Plans

Stock Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Stock Benefit Plans	9.Stock Benefit Plans MMC maintains multiple share-based payment arrangements under which employees are awarded grants of restricted stock units, stock options and other forms of stock-based payment arrangements. Effective July1, 2005, MMC adopted the revised guidelines for accounting for stock compensation using the modified-prospective transition method. Under this transition method, compensation cost includes compensation cost for all share-based payment arrangements granted prior to but not yet vested as of July1, 2005, based on the grant date fair value and expense attribution methodology determined in accordance with the prior accounting guidance, and compensation cost for all share-based payment arrangements granted subsequent to June30, 2005, based on the grant-date fair value and expense attribution methodology determined in accordance with the revised guidance. MMC Incentive and Stock Award Plans In 2000, the Marsh McLennan Companies, Inc. 2000 Employee Incentive and Stock Award Plan (the 2000 Employee Plan) and the Marsh McLennan Companies, Inc. 2000 Senior Executive Incentive and Stock Award Plan (the 2000 Executive Plan) were adopted. The types of awards permitted under these plans include stock options, restricted stock, stock bonus units, restricted and deferred stock units payable in MMC common stock or cash, and other stock-based and performance-based awards. The Compensation Committee of the Board of Directors (the Compensation Committee) determines, at its discretion, which affiliates may participate in the plans, which eligible employees will receive awards, the types of awards to be received, and the terms and conditions thereof. The right of an employee to receive an award may be subject to performance conditions as specified by the Compensation Committee. The 2000 Plans contain provisions which, in the event of a change in control of MMC, may accelerate the vesting of the awards. Awards relating to not more than 80,000,000 shares of common stock may be made over the life of the 2000 Employee Plan plus shares remaining unused under pre-existing employee stock plans. Awards relating to not more than 8,000,000 shares of common stock may be made over the life of the 2000 Executive Plan plus shares remaining unused under pre-existing executive stock plans. Stock Options:Options granted under the 2000 Plans may be designated as either incentive stock options or non-qualified stock options. The Compensation Committee determines the terms and conditions of the option, including the time or times at which an option may be exercised, the methods by which such exercise price may be paid, and the form of such payment. Options are generally granted with an exercise price equal to the market value of MMCs common stock on the date of grant. These option awards generally vest 25%per annum and have a contractual term of 10 years. On March16, 2005, MMC began granting options that provide for a market-based triggering event before a vested option can be exercised. The terms and conditions of these stock option awards provide that (i)options will vest at a rate of 25% a year beginning one year from the date of grant and (ii)each

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value Measurements	10.Fair Value Measurements Fair Value Hierarchy MMC has categorized its corporate and fiduciary assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy. The fair value measurements of the plan assets for MMCs defined benefit pension plans are disclosed separately in Note 8. 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, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Financial assets recorded in the consolidated balance sheets are categorized based on the inputs in the valuation techniques as follows: Level 1. Valuations based on unadjusted quoted prices for identical assets or liabilities in an active market (examples include active exchange-traded equity securities, listed derivatives, most U.S.Government and agency securities, and certain other sovereign government obligations). Assets and liabilities utilizing Level 1 inputs include exchange traded equity securities and mutual funds. Level 2. Financial assets and liabilities whose values are based on the following: a) Quoted prices for similar assets or liabilities in active markets (for example, restricted stock); 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 utilizing Level 2 inputs include corporate and municipal bonds. Level3. Financial 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 managements own assumptions about the assumptions a market participant would use in pricing the asset or liability (examples include private equity investments and certain commercial mortgage whole loans). The Company does not have any Level 3 assets or liabilities. Valuation Techniques Equity Securities Mutual Funds Investments for which market quotations are readily available are valued at the sale price on their principal exchange, or official closing bid price for certain markets. If no sales are reported, the security is valued at its last reported bid price. Other Sovereign Government Obligations, Municipal Bonds and Corporate Bonds These

Long-term Commitments

Long-term Commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Long-term Commitments	11.Long-term Commitments MMC leases office facilities, equipment and automobiles under noncancelable operating leases. These leases expire on varying dates; in some instances contain renewal and expansion options; do not restrict the payment of dividends or the incurrence of debt or additional lease obligations; and contain no significant purchase options. In addition to the base rental costs, occupancy lease agreements generally provide for rent escalations resulting from increased assessments for real estate taxes and other charges. Approximately 97% of MMCs lease obligations are for the use of office space. The consolidated statements of income include net rental costs of $426 million, $468 million and $511 million for 2009, 2008 and 2007, respectively, after deducting rentals from subleases ($6 million in 2009, $8 million in 2008 and $23 million in 2007). The net rental costs disclosed above exclude rental costs and sublease income for previously accrued restructuring charges related to vacated space. At December31, 2009, the aggregate future minimum rental commitments under all noncancelable operating lease agreements are as follows: For the Years EndingDecember31, (In millions of dollars) Gross Rental Commitments Rentals from Subleases Net Rental Commitments 2010 $ 415 $ 51 $ 364 2011 $ 371 $ 49 $ 322 2012 $ 336 $ 49 $ 287 2013 $ 289 $ 48 $ 241 2014 $ 241 $ 46 $ 195 Subsequent years $ 1,244 $ 240 $ 1,004 MMC has entered into agreements with various service companies to outsource certain information systems activities and responsibilities and processing activities. Under these agreements, MMC is required to pay minimum annual service charges. Additional fees may be payable depending upon the volume of transactions processed, with all future payments subject to increases for inflation. At December31, 2009, the aggregate fixed future minimum commitments under these agreements are as follows: For the Years Ending December31, (In millions of dollars) Future Minimum Commitments 2010 $ 113 2011 74 2012 59 Subsequent years 189 $ 435

Debt

Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Debt	12.Debt MMCs outstanding debt is as follows: December31, (In millions of dollars) 2009 2008 Short-term: Current portion of long-term debt $ 558 $ 408 Long-term: Senior notes 7.125% due 2009 $ $ 400 Senior notes 6.25% due 2012 (5.1% effective interest rate) 255 257 Senior notes 4.850% due 2013 249 249 Senior notes 5.875% due 2033 296 296 Senior notes 5.375% due 2014 648 648 Senior notes 5.15% due 2010 549 549 Senior notes 5.75% due 2015 747 747 Senior notes 9.25% due 2019 398 Mortgage 5.70% due 2035 447 454 Other 3 2 3,592 3,602 Less current portion 558 408 $ 3,034 $ 3,194 During the second quarter of 2009, MMCs 7.125% ten-year fixed rate $400 million senior notes matured. MMC used cash on hand as well as proceeds from the issuance of 9.25% ten-year $400 million senior notes in the first quarter to manage liquidity, including the funding of the maturing notes. There were no commercial paper borrowings outstanding at December31, 2009 or 2008. On October23, 2009, MMC and certain of its foreign subsidiaries entered into a new $1.0 billion multi-currency three-year unsecured revolving credit facility, which replaced the $1.2 billion facility discussed below. The interest rate on this facility varies based upon MMCs credit ratings and MMCs credit default swap levels subject to floors and caps. The facility requires MMC to maintain certain coverage and leverage ratios which are tested quarterly. There were no borrowings outstanding under this facility at December31, 2009. MMC and certain of its foreign subsidiaries previously maintained a $1.2 billion multi-currency five-year revolving credit facility. The facility was previously due to expire in December 2010 and was in effect until October 2009. There were no borrowings outstanding under this facility at the time it was terminated. Additional credit facilities, guarantees and letters of credit are maintained with various banks, primarily related to operations located outside the United States, aggregating $250 million at December31, 2009 and $285 million at December31, 2008. There were no outstanding borrowings under these facilities at December31, 2009 or December31, 2008. Scheduled repayments of long-term debt in 2010 and in the four succeeding years are $558 million, $8 million, $259 million, $259 million and $660 million, respectively.

Financial Instruments

Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Instruments	13. Financial Instruments The estimated fair value of MMCs significant financial instruments 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 MMC would realize upon disposition, nor do they indicate MMCs intent or ability to dispose of the financial instrument. 2009 2008 December31, (In millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 1,777 $ 1,777 $ 1,685 $ 1,685 Long-term investments $ 109 $ 102 $ 137 $ 137 Short-term debt $ 558 $ 572 $ 408 $ 407 Long-term debt $ 3,034 $ 3,174 $ 3,194 $ 2,959 Cash and Cash Equivalents: The estimated fair value of MMCs cash and cash equivalents approximates their carrying value. Long-term Investments: Long-term investments include available for sale securities recorded at quoted market prices as discussed below. MMC also has certain additional long-term investments, for which there are no readily available market prices, amounting to $53 million and $91 million at December31, 2009 and 2008, respectively, which are carried on a cost basis. These investments are included in Other assets in the consolidated balance sheets. MMC monitors these investments for impairment and makes appropriate reductions in carrying values when necessary. MMC had available for sale securities with an aggregate fair value of $38 million and $21 million at December31, 2009 and 2008, respectively, which are carried at market value. Gross unrealized gains (pre-tax) included in accumulated other comprehensive income on these securities was $15 million at December31, 2009 and $13 million at December31, 2008. The following provides activity related to available for sale securities during the following years: (In millions of dollars) 2009 2008 2007 Net unrealized gains (losses) (pre-tax) $ 4 $ (8 ) $ 6 These amounts have been excluded from earnings and reported, net of deferred income taxes, in accumulated other comprehensive income (loss), which is a component of stockholders equity. MMC also recorded unrealized gains/(losses) of $(7) million, $24 million and $0 million as of December31, 2009, 2008 and 2007, respectively, related to the portion of insurance fiduciary funds described in Note 1, that are invested in high quality debt securities and classified as available for sale. These amounts have been excluded from earnings and reported, net of deferred income taxes, in accumulated other comprehensive income (loss), which is a component of stockholders equity. Gross unrealized gains (pre-tax) on these securities that are included in accumulated other comprehensive income were $17 million and $24 million at December31, 2009 and December31, 2008, respectively. Proceeds and realized gains from the sale of available for sale investments were as follows: (In millions of dollars) 2009 2008 2007

Integration and Restructuring C

Integration and Restructuring Costs
	12 Months Ended Dec. 31, 2009 USD / shares
Integration and Restructuring Costs	14.Integration and Restructuring Costs Actions Initiated in 2009 In 2009, MMC implemented restructuring actions resulting in charges totaling $237 million, primarily related to severance and benefits, and costs for future rent and other real estate costs as follows: Risk and Insurance Services$171 million, Consulting$45 million, Risk Consulting Technology$8 million, and Corporate$13 million. These activities resulted in the elimination of approximately 1,500 positions at Marsh, 100 positions at Guy Carpenter, 600 positions at Mercer, 200 positions at Risk Consulting Technology and 40 positions at Corporate. Actions Initiated Prior to 2009 Prior to 2009, MMC implemented several restructuring and cost-saving initiatives related to firm-wide infrastructure, organization structure and operating company business processes. These initiatives resulted in staff reductions and consolidations of facilities. MMC incurred restructuring costs of $14 million for the twelve months ended December31, 2009 in connection with actions initiated in prior years, primarily due to adjustments to the estimated future rent and real estate costs related to previously vacated space in MMCs New York headquarters building. These amounts were included in corporate expenses. As of December31, 2009, the remaining liability for the restructuring initiatives were approximately $263 million primarily related to future severance and benefit payments and estimated future lease obligations. The expenses associated with the restructuring plans are included in compensation and benefits and other operating expenses in the consolidated statements of income, and liabilities associated with these initiatives are classified on the consolidated balance sheets as accounts payable, other liabilities, or accrued salaries, depending on the nature of the items.

Common Stock

Common Stock
	12 Months Ended Dec. 31, 2009 USD / shares
Common Stock	15.Common Stock In August 2007, MMC entered into an $800 million accelerated share repurchase agreement with a financial institution counterparty. Under the terms of the agreement, MMC paid the full $800 million purchase price and took delivery from the counterparty of an initial tranche of 21,320,530 shares of MMC common stock. This number of shares was the quotient of the $800 million purchase price divided by a contractual cap price of $37.5225 per share. Based on the market price of MMCs common stock over the subsequent settlement period, in March 2008 the counterparty delivered to MMC an additional 10,751,100 shares for no additional payment and the transaction was concluded. MMC thus repurchased a total of 32,071,630 shares at average price per share to MMC of $24.9442. The repurchased shares were reflected as an increase to treasury shares (a decrease in shares outstanding) on the respective delivery dates. This transaction was effected under a $1.5 billion share repurchase authorization granted by MMCs Board of Directors in August 2007. MMC remains authorized to repurchase additional shares of its common stock up to a value of $700 million. There is no time limit on this authorization. In May 2007, MMC entered into a $500 million accelerated share repurchase agreement with a financial institution counterparty. Under the terms of the agreement, MMC paid the full $500 million purchase price and took delivery from the counterparty of an initial tranche of 13,464,749 shares of MMC common stock. Based on the market price of MMCs common stock over the subsequent settlement period, in July 2007 the counterparty delivered to MMC an additional 2,555,519 shares for no additional payment and the transaction was concluded. MMC thus repurchased a total of 16,020,268 shares in the transaction, for a total cost of $500 million and an average price per share to MMC of $31.2105. The repurchased shares were reflected as an increase in Treasury shares (a decrease in shares outstanding) on the respective delivery dates. This transaction was effected under a $500 million share repurchase authorization granted by MMCs Board of Directors in May 2007.

Claims, Lawsuits and Other Cont

Claims, Lawsuits and Other Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Claims, Lawsuits and Other Contingencies	16.Claims, Lawsuits and Other Contingencies Governmental Inquiries and Claims In December 2007, the Alaska Retirement Management Board filed a civil lawsuit against Mercer (US) Inc. in Alaska state court. Plaintiff, represented by the Alaska Law Department and the law firm of Paul, Weiss, Rifkind, Wharton Garrison LLP, filed an amended complaint in May 2009. The amended complaint alleges professional negligence and malpractice, breach of contract, breach of implied covenant of good faith and fair dealing, negligent misrepresentation, unfair trade practices and fraud and misrepresentation related to actuarial services that Mercer provided to the Alaska Division of Retirement and Benefits relating to the Alaska Public Employees Retirement System and the Alaska Teachers Retirement System. The amended complaint seeks damages of at least $2.8 billion, treble damages related to the unfair trade practices claim, punitive damages, attorneys fees, costs and interest. Mercer filed a motion to dismiss the amended complaint, which was denied in December 2009. In February 2010, Mercer filed a motion for partial summary judgment seeking dismissal of plaintiffs fraud claim. Trial is currently scheduled for July 2010 in Juneau, Alaska. In October 2007, the State of Connecticut brought a civil action against Guy Carpenter in Connecticut state court alleging that Guy Carpenter violated the states antitrust and unfair trade practices laws by engaging in allocation of markets, price-fixing and other allegedly improper conduct by taking part in the operation of several reinsurance facilities over a period of decades. An amended complaint was filed in October 2009. The amended complaint alleges damages to Guy Carpenters insurance company clients and their customers, as well as to the general economy of Connecticut, and seeks monetary damages, civil penalties, attorneys fees, costs and injunctive and other equitable relief. Discovery is underway in this matter. Errors and Omissions Claims MMC and its subsidiaries are subject to a significant number of other claims, lawsuits and proceedings in the ordinary course of business. Such claims and lawsuits consist principally of alleged errors and omissions in connection with the performance of professional services. Certain of these claims, including the action filed against Mercer by the Alaska Retirement Management Board described above, seek damages, including punitive and treble damages, in amounts that could, if awarded, be significant. In establishing liabilities for errors and omissions claims in accordance with FASB ASC Topic No.450 (Contingencies), MMC utilizes internal actuarial and other estimates, and case level reviews by inside and outside counsel. 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, including the lawsuit brought by the Alaska Retirement Management Board against Mercer, MMC has not recorded a liability, other than for legal fees to defend the claim, because MMC is unable, at the present time, to make a determination that a loss is both probab

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Information	17.Segment Information MMCs organization structure and segment reporting is based on the types of services provided. Under this organizational structure, MMCs business segments are: Risk and Insurance Services, comprising insurance services (Marsh) and reinsurance services (Guy Carpenter); Consulting, comprising Mercer and Oliver Wyman Group; and Risk Consulting Technology, which is comprised of Kroll. The accounting policies of the segments are the same as those used for the consolidated financial statements described in Note 1. The information in the following table excludes the results of Putnam and KGS, which are classified as discontinued operations as described in Note 5. Revenues are attributed to geographic areas on the basis of where the services are performed. 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 MMC corporate-level expenses. Selected information about MMCs operating segments and geographic areas of operation follows: For the Years Ended December31, (In millions of dollars) Revenue Operating Income (Loss) Total Assets Depreciation and Amortization Capital Expenditures 2009 Risk and Insurance Services $ 5,284 (a) $ 796 $ 8,320 $ 153 $ 147 Consulting 4,609 (b) 405 4,244 114 44 Risk Consulting Technology 668 (c) (272 )(e) 1,573 71 78 Total Operating Segments 10,561 929 $ 14,137 338 269 Corporate/Eliminations (68 ) (420 ) 1,200 (d) 27 36 Total Consolidated $ 10,493 $ 509 $ 15,337 $ 365 $ 305 2008 Risk and Insurance Services $ 5,466 (a) $ 460 $ 7,704 $ 188 $ 135 Consulting 5,196 (b) 555 4,156 111 113 Risk Consulting Technology 924 (c) (512 )(e) 1,887 81 50 Total Operating Segments 11,586 503 13,747 380 298 Corporate/Eliminations (68 ) (255 ) 1,459 (d) 23 89 Total Consolidated $ 11,518 $ 248 $ 15,206 $ 403 $ 387 2007 Risk and Insurance Services $ 5,400 (a) $ 342 $ 9,091 $ 214 $ 136 Consulting 4,884 (b) 606 4,438 94 99 Risk Consulting Technology 945 (c) 106 2,538 79 43 Total Operating Segments 11,229 1,054 16,067 387 278 Corporate/Eliminations (94 ) (200 ) 1,292 (d) 19 85 Total Consolidated $ 11,135 $ 854 $ 17,359 $ 406 $ 363 (a) Includes inter-segment revenue ($18 million in 2009, $5 million in 2008 and $7 million in 2007) and interest income on fiduciary funds ($54 million in 2009, $139 million in 2008 and $177 million in 2007) and equ

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 19, 2010	Jun. 30, 2009
Trading Symbol	MMC
Entity Registrant Name	MARSH & MCLENNAN COMPANIES, INC.
Entity Central Index Key	0000062709
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		532,188,249
Entity Public Float			$10,606,437,460