EX-99 4 e99-1k2007.htm SUMMARY OF OPERATIONS

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, 2006.

Marsh & McLennan Companies, Inc. and Subsidiaries
FIVE-YEAR STATISTICAL SUMMARY OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,
(In millions except per share figures)

 

2006

(b)(c)

2005

(b)(c)

2004

(b)(c)

2003

(b)(c)

2002

(b)(c)

Compound
Growth
Rate
2001-2006

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Revenue

 

$

10,350

 

$

9,902

 

$

9,877

 

$

9,156

 

$

7,885

 

8

%

 

Investment Income (Loss)

 

 

197

 

 

180

 

 

149

 

 

97

 

 

109

 

20

%

 

Total Revenue

 

 

10,547

 

 

10,082

 

 

10,026

 

 

9,253

 

 

7,994

 

8

%

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and Benefits

 

 

6,515

 

 

6,327

 

 

6,073

 

 

5,094

 

 

4,422

 

10

%

 

Other Operating Expenses

 

 

2,877

 

 

3,135

 

 

2,853

 

 

2,226

 

 

1,909

 

7

%

 

Regulatory and Other Settlements

 

 

—

 

 

30

 

 

618

 

 

—

 

 

—

 

 

 

 

Total Expenses

 

 

9,392

 

9,492

 

 

9,544

 

 

7,320

 

 

6,331

 

9

%

 

Operating Income

 

 

1,155

(a)

 

590

(a)

 

482

(a)

 

1,933

 

 

1,663

 

—

 

 

Interest Income

 

 

60

 

 

44

 

 

20

 

 

23

 

 

17

 

 

 

 

Interest Expense

 

 

(303

)

 

(332

)

 

(219

)

 

(185

)

 

(160

)

 

 

 

Income Before Income Taxes and Minority Interest

 

 

912

 

 

302

 

 

283

 

 

1,771

 

 

1,520

 

(1

)%

 

Income Taxes

 

 

272

 

 

95

 

 

100

 

 

555

 

 

518

 

 

 

 

Minority Interest, Net of Tax

 

 

8

 

 

6

 

 

8

 

 

8

 

 

7

 

 

 

 

Income From Continuing Operations

 

 

632

 

 

201

 

 

175

 

 

1,208

 

 

995

 

1

%

 

Discontinued Operations, Net of Tax

 

 

358

 

 

203

 

 

1

 

 

332

 

 

370

 

(1

)%

 

Net Income

 

$

990

 

$

404

 

$

176

 

$

1,540

 

$

1,365

 

—

 

 

Basic Income Per Share Information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income From Continuing Operations

 

$

1.15

 

$

0.37

 

$

0.33

 

$

2.27

 

$

1.84

 

1

%

 

Income From Discontinued Operations

 

$

0.65

 

$

0.38

 

$

—

 

$

0.62

 

$

0.68

 

(1

)%

 

Net Income

 

$

1.80

 

$

0.75

 

$

0.33

 

$

2.89

 

$

2.52

 

—

 

 

Average Number of Shares Outstanding

 

 

549

 

 

538

 

 

526

 

 

533

 

 

541

 

 

 

 

Diluted Income Per Share Information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income From Continuing Operations

 

$

1.14

 

$

0.37

 

$

0.33

 

$

2.21

 

$

1.79

 

2

%

 

Income From Discontinued Operations

 

$

0.62

 

$

0.37

 

$

—

 

$

0.60

 

$

0.66

 

(2

)%

 

Net Income

 

$

1.76

 

$

0.74

 

$

0.33

 

$

2.81

 

$

2.45

 

1

%

 

Average Number of Shares Outstanding

 

 

557

 

 

543

 

 

535

 

 

548

 

 

557

 

 

 

 

 

 

Dividends Paid Per Share

 

$

0.68

 

$

0.68

 

$

1.30

 

$

1.18

 

$

1.09

 

(8

)%

 

 

 

Return on Average Stockholders’ Equity

 

 

18

%

 

8

%

 

3

%

 

29

%

 

27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-end Financial Position:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Working capital

 

$

1,058

 

$

1,390

 

$

(258

)

$

920

 

$

1,105

 

 

 

 

Total assets

 

$

18,137

 

$

17,892

 

$

18,498

 

$

15,053

 

$

13,855

 

 

 

 

Long-term debt

 

$

3,860

 

$

5,044

 

$

4,691

 

$

2,910

 

$

2,891

 

 

 

 

Stockholders’ equity

 

$

5,819

 

$

5,360

 

$

5,056

 

$

5,451

 

$

5,018

 

 

 

 

Total shares outstanding (net of treasury shares)

 

 

552

 

 

546

 

 

527

 

 

527

 

 

538

 

 

 

 

Other Information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of employees

 

 

52,600

 

 

51,900

 

 

59,300

 

 

55,200

 

 

53,800

 

 

 

 

Stock price ranges–

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. exchanges – High

 

$

32.73

 

$

34.25

 

$

49.69

 

$

54.97

 

$

57.30

 

 

 

 

                          – Low

 

$

24.00

 

$

26.67

 

$

22.75

 

$

38.27

 

$

34.61

 

 

 

 

 

 

(a)

Includes net restructuring costs of $87 million, $317 million and $322 million in 2006, 2005 and 2004, respectively.

 

 

(b)

Certain balances have been reclassified to conform with current presentation. See Note 1 to the Consolidated Financial Statements.

 

 

(c)

Amended to reflect Putnam as a discontinued operation.

See Management’s Discussion and Analysis of Financial Condition and Results of Operations, appearing under Amended Item 7 of this report, for discussion of significant items affecting our results of operations in 2006 and 2005.

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