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Published: 2021-07-22 00:00:00 ET
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EX-99.1 2 mmc2q2021ex991newsrelease.htm PRESS RELEASE JUNE 30, 2021 Document

marshmclennanlogoa.jpg
Marsh McLennan
1166 Avenue of the Americas
New York, New York 10036-2774
212 345 5000
www.mmc.com
NEWS RELEASE
Exhibit 99.1

MARSH McLENNAN REPORTS SECOND QUARTER 2021 RESULTS
GAAP Revenue Increases 20%; Underlying Revenue Rises 13%
Growth in GAAP Operating Income of 39% and Adjusted Operating Income of 24%
Second Quarter EPS Rises to $1.60 from $1.12 and Adjusted EPS Increases 33% to $1.75
Six Months EPS Rises to $3.51 from $2.60 and Adjusted EPS Increases 26% to $3.74

NEW YORK, July 22, 2021 – Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, today reported financial results for the second quarter ended June 30, 2021.
Dan Glaser, President and CEO, said: “Our performance this quarter was outstanding. The company achieved the strongest underlying growth in two decades, and experienced an acceleration in growth across all of our businesses. We grew underlying revenue by 13%, adjusted operating income by 24%, and adjusted EPS by 33%.
“These results are a direct reflection of the hard work and dedication of our colleagues around the world. We look forward to carrying this momentum into the second half of the year.”

Consolidated Results
Consolidated revenue in the second quarter of 2021 was $5.0 billion, an increase of 20% compared with the second quarter of 2020. On an underlying basis, revenue increased 13%. Operating income was $1.2 billion, an increase of 39% from the prior year. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 24% to $1.2 billion. Net income attributable to the Company was $820 million, or $1.60 per diluted share, compared with $1.12 in the second quarter of 2020. Adjusted earnings per share rose 33% to $1.75 per diluted share compared with $1.32 for the prior year period.
For the six months ended June 30, 2021, consolidated revenue was $10.1 billion, an increase of 14%, or 9% on an underlying basis compared to the prior period. Operating income was $2.6 billion, an increase of 32% from the prior year period. Adjusted operating income rose 22% to $2.6 billion. Net income attributable to the Company was $1.8 billion. Fully diluted earnings per share was $3.51 compared with $2.60 in the first six months of 2020. Adjusted earnings per share increased 26% to $3.74 compared with $2.96 for the comparable period in 2020.

1

Risk & Insurance Services
Risk & Insurance Services revenue was $3.1 billion in the second quarter of 2021, an increase of 21%, or 13% on an underlying basis. Operating income rose 37% to $950 million, and adjusted operating income was $927 million, an increase of 22% from the prior year period. For the six months ended June 30, 2021, revenue was $6.4 billion, an increase of 15%, or 10% on an underlying basis. Operating income rose 30% to $2.0 billion, and adjusted operating income was $2.0 billion, an increase of 19% from the prior year period.
Marsh's revenue in the second quarter was $2.7 billion, an increase of 14% on an underlying basis. In US/Canada, underlying revenue rose 15%. International operations produced underlying revenue growth of 13%, reflecting 16% growth in EMEA, 10% growth in Asia Pacific, and 2% in Latin America. For the six months ended June 30, 2021, Marsh’s underlying revenue growth was 11% compared to the prior period a year ago.
Guy Carpenter's revenue in the second quarter was $488 million, an increase of 12% on an underlying basis. For the six months ended June 30, 2021, Guy Carpenter’s underlying revenue growth was 8%.
Consulting
Consulting revenue in the second quarter was $1.9 billion, an increase of 17% or 12% on an underlying basis compared to the same period a year ago. Operating income increased 35% to $344 million, and adjusted operating income increased 34% to $356 million. For the first six months of 2021, revenue was $3.8 billion, an increase of 11%, or an increase of 8% on an underlying basis. Operating income of $705 million increased 31% and adjusted operating income increased 31% to $726 million.
Mercer's revenue was $1.3 billion in the second quarter, an increase of 6% on an underlying basis. Career with revenue of $187 million, was up 15% on an underlying basis. Wealth revenue of $625 million increased 4% on an underlying basis, and Health revenue of $462 million increased 4% on an underlying basis. For the six months ended June 30, 2021, Mercer’s revenue was $2.6 billion, an increase of 3% on an underlying basis compared to the same period a year ago.
Oliver Wyman’s revenue was $618 million in the second quarter, an increase of 28% on an underlying basis. For the first six months ended June 30, 2021, Oliver Wyman’s revenue was $1.2 billion, an increase of 19% on an underlying basis.
Other Items
The Company repurchased 2.4 million shares of stock for $322 million in the second quarter. Through six months, the Company has repurchased 3.4 million shares for $434 million.
Last week, the Board of Directors increased the quarterly dividend 15% to $0.535 per share, with the third quarter dividend payable on August 13, 2021.
2

Conference Call
A conference call to discuss second quarter 2021 results will be held today at 8:30 a.m. Eastern time. To participate in the teleconference, please dial +1 866 437 7574. Callers from outside the United States should dial +1 409 220 9376. The access code for both numbers is 5668714. The live audio webcast may be accessed at mmc.com. A replay of the webcast will be available approximately two hours after the event.
About Marsh McLennan
Marsh McLennan (NYSE: MMC) is the world’s leading professional services firm in the areas of risk, strategy and people. The Company’s 78,000 colleagues advise clients in 130 countries. With annual revenue of over $18 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses. Marsh provides data-driven risk advisory services and insurance solutions to commercial and consumer clients. Guy Carpenter develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities. Mercer delivers advice and technology-driven solutions that help organizations redefine the world of work, reshape retirement and investment outcomes, and unlock health and well being for a changing workforce. Oliver Wyman serves as a critical strategic, economic and brand advisor to private sector and governmental clients. For more information, visit mmc.com, follow us on LinkedIn and Twitter or subscribe to BRINK.
3

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future events or results, use words like "anticipate," "assume," "believe," "continue," "estimate," "expect," "intend," "plan," "project" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would".
Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. Factors that could materially affect our future results include, among other things:
•our ability to maintain adequate safeguards to protect the security of our information systems and confidential, personal or proprietary information, particularly given the increased risk of cybersecurity attacks, including hacking, viruses, malware, ransomware and other types of data security breaches, as well as the heightened risk caused by remote work arrangements;
•the impact from lawsuits or investigations arising from errors and omissions, breaches of fiduciary duty or other claims against us in our capacity as a broker or investment advisor;
•increased regulatory activity and scrutiny by regulatory or law enforcement authorities in the financial services industry;
•the financial and operational impact of complying with laws and regulations where we operate and the risks of noncompliance with such laws by us or third-party providers, including anti-corruption laws such as the U.S. Foreign Corrupt Practices Act, U.K. Anti-Bribery Act and cybersecurity and data privacy regulations such as the E.U.’s General Data Protection Regulation;
•the impact of COVID-19 on our business operations, results of operations, cash flows and financial position;
•our ability to compete effectively and adapt to changes in the competitive environment, including to respond to technological change, disintermediation, digital disruption and other types of innovation;
•our ability to manage risks associated with our investment management and related services business, particularly in the context of uncertain equity markets, including our ability to execute timely trades in light of increased trading volume and to manage potential conflicts of interest;
•our ability to attract and retain industry leading talent;
•the impact of changes in tax laws, guidance and interpretations, particularly due to recently enacted legislation in the U.K. and proposals from the U.S. government or from the Organization for Economic Development and Cooperation, or disagreements with tax authorities;
•our ability to successfully recover if we experience a business continuity problem due to cyberattack, natural disaster, government unrest or otherwise; and
•the regulatory, contractual and reputational risks that arise based on insurance placement activities and growing insurer revenue streams.
The factors identified above are not exhaustive. Marsh McLennan and its subsidiaries operate in a dynamic business environment in which new risks emerge frequently. Accordingly, we caution readers not to place undue reliance on any forward-looking statements, which are based only on information currently available to us and speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made.
Further information concerning Marsh McLennan and its businesses, including information about factors that could materially affect our results of operations and financial condition, is contained in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section and the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section of our most recently filed Annual Report on Form 10-K.

4

Marsh & McLennan Companies, Inc.
Consolidated Statements of Income
(In millions, except per share figures)
(Unaudited) 
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2021202020212020
Revenue$5,017 $4,189 $10,100 $8,840 
Expense: 
Compensation and benefits2,860 2,429 5,667 4,984 
Other operating expenses929 875 1,847 1,901 
     Operating expenses
3,789 3,304 7,514 6,885 
Operating income1,228 885 2,586 1,955 
Other net benefit credits 71 63 142 127 
Interest income1 2 1 4 
Interest expense(110)(132)(228)(259)
Investment income (loss) 19 (31)30 (33)
Income before income taxes1,209 787 2,531 1,794 
Income tax expense382 207 706 447 
Net income before non-controlling interests827 580 1,825 1,347 
Less: Net income attributable to non-controlling interests7 8 22 21 
Net income attributable to the Company$820 $572 $1,803 $1,326 
Net income per share attributable to the Company:
- Basic$1.61 $1.13 $3.55 $2.62 
- Diluted$1.60 $1.12 $3.51 $2.60 
Average number of shares outstanding
- Basic508 506 508 505 
- Diluted513 511 514 510 
Shares outstanding at June 30507 506 507 506 



5

Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Three Months Ended June 30
(Millions) (Unaudited)
The Company conducts business in 130 countries. As a result, foreign exchange rate movements may impact period-to-period comparisons of revenue. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period-to-period comparisons of revenue. Underlying revenue measures the change in revenue from one period to the next by isolating these impacts.
   Components of Revenue Change*
 Three Months Ended
June 30,		% Change GAAP RevenueCurrency ImpactAcquisitions/
Dispositions/ Other Impact		Underlying Revenue
 20212020
Risk and Insurance Services     
Marsh$2,650 $2,161 23%4%5%14%
Guy Carpenter488 433 13%1%—12%
     Subtotal3,138 2,594 21%4%4%14%
Fiduciary Interest Income3 9 
     Total Risk and Insurance Services3,141 2,603 21%4%4%13%
Consulting 
Mercer1,274 1,149 11%6%(1)%6%
Oliver Wyman Group618 467 33%5%—28%
     Total Consulting1,892 1,616 17%5%—12%
Corporate Eliminations(16)(30)
     Total Revenue$5,017 $4,189 20%4%2%13%
Revenue Details
The following table provides more detailed revenue information for certain of the components presented above:
   Components of Revenue Change*
 Three Months Ended
June 30,		% Change
GAAP Revenue		Currency ImpactAcquisitions/
Dispositions/ Other Impact		Underlying Revenue
 20212020
Marsh:     
EMEA$796 $597 33 %9 %9 %16 %
Asia Pacific347 298 16 %8 %(1)%10 %
Latin America103 99 4 %2 %— 2 %
     Total International1,246 994 25 %8 %5 %13 %
U.S./Canada1,404 1,167 20 %1 %5 %15 %
     Total Marsh$2,650 $2,161 23 %4 %5 %14 %
Mercer: 
Wealth625 561 11 %8 %(1)%4 %
Health462 432 7 %3 %— 4 %
Career187 156 20 %5 %— 15 %
     Total Mercer$1,274 $1,149 11 %6 %(1)%6 %
 
* Components of revenue change may not add due to rounding.






6

Marsh & McLennan Companies, Inc.
Supplemental Information - Revenue Analysis
Six Months Ended June 30
(Millions) (Unaudited)
The Company conducts business in 130 countries. As a result, foreign exchange rate movements may impact period-to-period comparisons of revenue. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period-to-period comparisons of revenue. Underlying revenue measures the change in revenue from one period to the next by isolating these impacts.
   Components of Revenue Change*
 Six Months Ended
June 30,		% Change GAAP RevenueCurrency ImpactAcquisitions/
Dispositions/ Other Impact		Underlying Revenue
 20212020
Risk and Insurance Services     
Marsh$4,975 $4,222 18 %4 %3 %11 %
Guy Carpenter1,383 1,260 10 %2 %— 8 %
     Subtotal6,358 5,482 16 %3 %3 %10 %
Fiduciary Interest Income8 32 
     Total Risk and Insurance Services6,366 5,514 15 %3 %3 %10 %
Consulting 
Mercer2,562 2,400 7 %5 %(1)%3 %
Oliver Wyman Group1,203 978 23 %4 %— 19 %
     Total Consulting3,765 3,378 11 %5 %(1)%8 %
Corporate Eliminations(31)(52)
     Total Revenue$10,100 $8,840 14 %4 %1 %9 %

Revenue Details
The following table provides more detailed revenue information for certain of the components presented above:
   Components of Revenue Change*
 Six Months Ended
June 30,		% Change
GAAP Revenue		Currency ImpactAcquisitions/
Dispositions/ Other Impact		Underlying Revenue
 20212020
Marsh:     
EMEA$1,633 $1,351 21%7%3%11%
Asia Pacific621 536 16%7%—9%
Latin America193 190 2%(2)%—4%
     Total International2,447 2,077 18%7%2%9%
U.S./Canada2,528 2,145 18%1%5%12%
     Total Marsh$4,975 $4,222 18%4%3%11%
Mercer: 
Wealth1,248 1,153 8%7%(1)%2%
Health949 918 3%2%(1)%2%
Career365 329 11%4%—8%
     Total Mercer$2,562 $2,400 7%5%(1)%3%
 
* Components of revenue change may not add due to rounding.





7

Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Three Months Ended June 30
(Millions) (Unaudited)
Overview
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (referred to in this release as in accordance with "GAAP" or "reported" results). The Company also refers to and presents below certain additional non-GAAP financial measures, within the meaning of Regulation G under the Securities Exchange Act of 1934. These measures are: adjusted operating income (loss), adjusted operating margin, adjusted income, net of tax and adjusted earnings per share (EPS). The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP in the following tables.
The Company believes these non-GAAP financial measures provide useful supplemental information that enables investors to better compare the Company’s performance across periods. Management also uses these measures internally to assess the operating performance of its businesses, to assess performance for employee compensation purposes, and to decide how to allocate resources. However, investors should not consider these non-GAAP measures in isolation from, or as a substitute for, the financial information that the Company reports in accordance with GAAP. The Company's non-GAAP measures include adjustments that reflect how management views its businesses, and may differ from similarly titled non-GAAP measures presented by other companies.
Adjusted Operating Income (Loss) and Adjusted Operating Margin
Adjusted operating income (loss) is calculated by excluding the impact of certain noteworthy items from the Company's GAAP operating income or (loss). The following tables identify these noteworthy items and reconcile adjusted operating income (loss) to GAAP operating income or loss, on a consolidated and reportable segment basis, for the three and six months ended June 30, 2021 and 2020. The following tables also present adjusted operating margin. For the three and six months ended June 30, 2021 and 2020, adjusted operating margin is calculated by dividing the sum of adjusted operating income and identified intangible asset amortization by consolidated or segment adjusted revenue.
Risk & Insurance ServicesConsultingCorporate/
Eliminations		Total
Three Months Ended June 30, 2021    
Operating income (loss)$950 $344 $(66)$1,228 
Operating margin30.2 %18.1 %N/A24.5 %
Add (deduct) impact of noteworthy Items:
Restructuring, excluding JLT (a)4 3 5 12 
Changes in contingent consideration (b)(5)1 (3)(7)
JLT integration and restructuring costs (c)11 6 2 19 
JLT acquisition-related costs (d)11 1 — 12 
Disposal of businesses (e)(51)1 — (50)
Other 7 — — 7 
Operating income adjustments(23)12 4 (7)
Adjusted operating income (loss)$927 $356 $(62)$1,221 
Total identified intangible amortization expense$75 $14 $— $89 
Adjusted operating margin32.4 %19.5 %N/A26.4 %
    
Three Months Ended June 30, 2020
Operating income (loss), as reported$696 $255 $(66)$885 
Operating margin26.7 %15.8 %N/A21.1 %
Add (deduct) impact of noteworthy Items:
Restructuring, excluding JLT (a)— 2 9 11 
Changes in contingent consideration (b)4 1 2 7 
     JLT integration and restructuring costs (c)39 7 11 57 
JLT acquisition-related costs (d)12 — 1 13 
Disposal of businesses (e)6 — — 6 
Other5 — — 5 
Operating income adjustments66 10 23 99 
Adjusted operating income (loss)$762 $265 $(43)$984 
Total identified intangible amortization expense$75 $13 $— $88 
Adjusted operating margin32.1 %17.3 %N/A25.5 %
(a) Primarily includes restructuring expenses associated with the Company's global information technology and HR functions and adjustments to restructuring liabilities for future rent under non-cancellable leases.
(b) Primarily includes the change in fair value of contingent consideration related to acquisitions and dispositions measured each quarter.
(c) Includes costs incurred for staff reductions, lease related exit costs, technology and consulting costs related to the JLT integration.
(d) Reflects retention costs related to the closing of the JLT Transaction.
(e) Primarily reflects a gain on the sale of the U.K. commercial networks business that provided broking and back-office solutions for small independent brokers during the second quarter of 2021. 2020 reflects net loss on disposal of specialty businesses sold in the U.S., U.K. and Canada, previously acquired as part of the JLT Transaction. These amounts are reflected as an increase or decrease of other revenue, which is reflected as part of revenue in the consolidated statements of income. These items are removed from GAAP revenue in the calculation of adjusted operating margin.
8

Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Six Months Ended June 30
(Millions) (Unaudited)

Risk & Insurance ServicesConsultingCorporate/
Eliminations		Total
Six Months Ended June 30, 2021    
Operating income (loss)$2,010 $705 $(129)$2,586 
Operating margin 31.6 %18.7 %N/A25.6 %
Add (deduct) impact of noteworthy items:
Restructuring, excluding JLT (a)5 8 10 23 
Changes in contingent consideration (b)1 (5)(3)(7)
JLT integration and restructuring costs (c)27 12 3 42 
JLT acquisition-related costs (d)22 2 — 24 
Disposal of business (e)(53)4 — (49)
Other 7 — — 7 
Operating income adjustments9 21 10 40 
Adjusted operating income (loss)$2,019 $726 $(119)$2,626 
Total identified intangible amortization expense$161 $28 $— $189 
Adjusted operating margin34.5 %20.0 %N/A28.0 %
Six Months Ended June 30, 2020    
Operating income (loss)$1,550 $537 $(132)$1,955 
Operating margin 28.1 %15.9 %N/A22.1 %
Add (deduct) impact of noteworthy items:
Restructuring, excluding JLT (a)2 6 12 20 
Changes in contingent consideration (b)7 (3)2 6 
JLT integration and restructuring costs (c)100 17 20 137 
JLT acquisition-related costs (d)24 1 1 26 
Disposal of business (e)6 (4)— 2 
Other 5 — — 5 
Operating income adjustments144 17 35 196 
Adjusted operating income (loss)$1,694 $554 $(97)$2,151 
Total identified intangible amortization expense$147 $27 $— $174 
Adjusted operating margin33.4 %17.2 %N/A26.3 %
(a) Primarily includes restructuring expenses associated with the Company's global information technology and HR functions and adjustments to restructuring liabilities for future rent under non-cancellable leases. Consulting charges in 2020 reflect severance and real estate exit costs related to the Mercer restructuring program completed in 2020.
(b) Primarily includes the change in fair value of contingent consideration related to acquisitions and dispositions as measured each quarter.
(c) Includes costs incurred for staff reductions, lease related exit costs, technology and consulting costs related to the JLT integration.
(d) Reflects retention costs related to the closing of the JLT Transaction.
(e) Primarily reflects a gain on the sale of the U.K. commercial networks business that provided broking and back-office solutions for small independent brokers during the second quarter of 2021. 2020 reflects net loss on disposal of specialty businesses sold in the U.S., U.K. and Canada, previously acquired as part of the JLT Transaction. These amounts are reflected as an increase or decrease of other revenue, which is reflected as part of revenue in the consolidated statements of income. These items are removed from GAAP revenue in the calculation of adjusted operating margin.














9

Marsh & McLennan Companies, Inc.
Reconciliation of Non-GAAP Measures
Three and Six Months Ended June 30
(Millions) (Unaudited)
Adjusted income, net of tax is calculated as the Company's GAAP income from continuing operations, adjusted to reflect the after tax impact of the operating income adjustments in the preceding tables and investments gains or losses related to the impact of mark-to-market adjustments on certain equity securities. Adjusted EPS is calculated by dividing the Company’s adjusted income, net of tax, by average number of shares outstanding-diluted for the relevant period. The following tables reconcile adjusted income, net of tax to GAAP income from continuing operations and adjusted EPS to GAAP EPS for the three and six month periods ended June 30, 2021 and 2020.
Three Months Ended June 30, 2021Three Months Ended June 30, 2020
AmountAdjusted EPSAmountAdjusted EPS
Net income before non-controlling interests, as reported$827 $580 
Less: Non-controlling interest, net of tax7 8 
Subtotal$820 $1.60 $572 $1.12 
Operating income adjustments$(7)$99 
Investments adjustment (a)(1)25 
Income tax effect of adjustments (b)(12)(21)
Impact of U.K. tax rate change (c)100 — 
80 0.15 103 0.20 
Adjusted income, net of tax$900 $1.75 $675 $1.32 
Six Months Ended June 30, 2021Six Months Ended June 30, 2020
AmountAdjusted EPSAmountAdjusted EPS
Net income before non-controlling interests, as reported$1,825 $1,347 
Less: Non-controlling interest, net of tax22 21 
Subtotal$1,803 $3.51 $1,326 $2.60 
Operating income adjustments$40 $196 
Investments adjustment (a)(1)26 
Income tax effect of adjustments (b)(21)(38)
Impact of U.K. tax rate change (c)100 — 
118 0.23 184 0.36 
Adjusted income, net of tax$1,921 $3.74 $1,510 $2.96 
(a) Represents mark-to-market gains in 2021 and losses in 2020, primarily related to the Company’s investment in Alexander Forbes (“AF”).
(b) For items with an income tax impact, the tax effect was calculated using an effective tax rate based on the tax jurisdiction for each item.
(c) Reflects the re-measurement of the Company's U.K. deferred tax assets and liabilities upon enactment of legislation that increased the corporate income tax rate applicable to U.K. based entities from 19% to 25%, effective April 1, 2023.
10

Marsh & McLennan Companies, Inc.
Supplemental Information
Three and Six Months Ended June 30
(Millions) (Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
 2021202020212020
Consolidated
Compensation and benefits$2,860 $2,429 $5,667 $4,984 
Other operating expenses929 875 1,847 1,901 
Total expenses$3,789 $3,304 $7,514 $6,885 
Depreciation and amortization expense$104 $91 $201 $188 
Identified intangible amortization expense89 88 189 174 
Total $193 $179 $390 $362 
Stock option expense $4 $5 $25 $21 
Risk and Insurance Services
Compensation and benefits$1,632 $1,382 $3,242 $2,834 
Other operating expenses559 525 1,114 1,130 
Total expenses$2,191 $1,907 $4,356 $3,964 
Depreciation and amortization expense$58 $45 $108 $97 
Identified intangible amortization expense75 75 161 147 
Total$133 $120 $269 $244 
 
Consulting
Compensation and benefits$1,110 $940 $2,184 $1,931 
Other operating expenses438 421 876 910 
Total expenses$1,548 $1,361 $3,060 $2,841 
Depreciation and amortization expense$29 $29 $58 $57 
Identified intangible amortization expense14 13 28 27 
Total$43 $42 $86 $84 



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Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions)
(Unaudited)
June 30,
2021		December 31, 2020
ASSETS  
Current assets:  
Cash and cash equivalents$888 $2,089 
Net receivables5,839 5,326 
Other current assets846 740 
Total current assets7,573 8,155 
Goodwill and intangible assets18,492 18,216 
Fixed assets, net816 856 
Pension related assets1,911 1,768 
Right of use assets1,983 1,894 
Deferred tax assets669 702 
Other assets1,509 1,458 
TOTAL ASSETS$32,953 $33,049 
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt$516 $517 
Accounts payable and accrued liabilities2,830 3,050 
Accrued compensation and employee benefits1,775 2,400 
Current lease liabilities342 342 
Accrued income taxes353 247 
Total current liabilities5,816 6,556 
Fiduciary liabilities9,936 8,585 
Less - cash and investments held in a fiduciary capacity(9,936)(8,585)
 — — 
Long-term debt10,257 10,796 
Pension, post-retirement and post-employment benefits2,539 2,662 
Long-term lease liabilities1,992 1,924 
Liabilities for errors and omissions365 366 
Other liabilities1,720 1,485 
Total equity10,264 9,260 
TOTAL LIABILITIES AND EQUITY$32,953 $33,049 

12

Marsh & McLennan Companies, Inc.
Consolidated Statements of Cash Flows
(Millions) (Unaudited)

Six Months Ended June 30,
20212020
Operating cash flows:
Net income before non-controlling interests$1,825 $1,347 
Adjustments to reconcile net income to cash used for operations:
Depreciation and amortization390 362 
Non cash lease expense158 165 
Share-based compensation expense176 147 
Change in fair value of acquisition-related derivative contracts and other53 15 
Changes in Assets and Liabilities:
Accrued compensation and employee benefits(642)(848)
Net receivables(551)(389)
Other changes to assets and liabilities(205)114 
Contributions to pension & other benefit plans in excess of current year credit(187)(165)
Operating lease liabilities(172)(164)
Effect of exchange rate changes(95)(6)
Net cash provided by operations750 578 
Financing cash flows:
Purchase of treasury shares(434)— 
Borrowings from term-loan and credit facilities— 1,000 
Proceeds from issuance of debt— 737 
Repayments of debt(509)(507)
Net issuance of common stock from treasury shares(23)(49)
Net distributions of non-controlling interests and deferred/contingent consideration(47)(94)
Dividends paid(478)(466)
Net cash (used for) provided by financing activities(1,491)621 
Investing cash flows:
Capital expenditures(151)(200)
Net (purchase) sale of long-term investments and other(4)105 
Dispositions81 93 
Acquisitions(363)(562)
Net cash used for investing activities(437)(564)
Effect of exchange rate changes on cash and cash equivalents(23)(79)
(Decrease) increase in cash and cash equivalents (1,201)556 
Cash and cash equivalents at beginning of period2,089 1,155 
Cash and cash equivalents at end of period$888 $1,711 
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