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Segment Information
9 Months Ended
Sep. 30, 2011
Segment Information [Abstract] 
Segment Information
Segment Information
The Company is organized based on the types of services provided. Under this organizational structure, the Company’s business segments are:
▪
Risk and Insurance Services, comprising insurance services (Marsh) and reinsurance services (Guy Carpenter); and
▪
Consulting, comprising Mercer and Oliver Wyman Group
With the sale of Kroll in August 2010, along with previous divestiture transactions between 2008 and 2010, the Company has divested its entire Risk Consulting and Technology segment.
The accounting policies of the segments are the same as those used for the consolidated financial statements described in Note 1 to the Company’s 2010 10-K. Segment performance is evaluated based on segment operating income, which includes directly related expenses, and charges or credits related to integration and restructuring but not the Company’s corporate-level expenses. Revenues are attributed to geographic areas on the basis of where the services are performed.
Selected information about the Company’s operating segments for the three and nine-month periods ended September 30, 2011 and 2010 are as follows:
 
  
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(In millions of dollars)
Revenue

 
Operating
Income
(Loss)

 
Revenue

 
Operating
Income
(Loss)

2011 –
 
 
 
 
 
 
 
Risk and Insurance Services
$
1,475

(a) 
$
186

 
$
4,729

(c) 
$
925

Consulting
1,339

(b) 
161

 
3,919

(d) 
441

Total Operating Segments
2,814

  
347

 
8,648

  
1,366

Corporate / Eliminations
(8
)
 
(37
)
 
(30
)
 
(119
)
Total Consolidated
$
2,806

  
$
310

 
$
8,618

  
$
1,247

2010 –
 
 
 
 
 
 
 
Risk and Insurance Services
$
1,327

(a) 
$
142

 
$
4,278

(c) 
$
747

Consulting
1,203

(b) 
138

 
3,526

(d) 
(21
)
Total Operating Segments
2,530

  
280

 
7,804

  
726

Corporate / Eliminations
(6
)
 
(41
)
 
(39
)
 
(112
)
Total Consolidated
$
2,524

  
$
239

 
$
7,765

  
$
614

(a) 
Includes inter-segment revenue of $2 million and $4 million in 2011 and 2010, respectively, interest income on fiduciary funds of $14 million and $11 million in 2011 and 2010, respectively, and equity method income of $1 million in both 2011 and 2010 .
(b) 
Includes inter-segment revenue of $6 million and $2 million in 2011 and 2010, respectively, and interest income on fiduciary funds of $1 million in both 2011 and 2010.
(c) 
Includes inter-segment revenue of $4 million and $6 million in 2011 and 2010, respectively, interest income on fiduciary funds of $36 million and $33 million in 2011 and 2010, respectively, and equity method income of $10 million and $9 million in 2011 and 2010, respectively.
(d) 
Includes inter-segment revenue of $26 million and $33 million in 2011 and 2010, respectively, and interest income on fiduciary funds of $3 million in both 2011 and 2010.
Details of operating segment revenue for the three and nine-month periods ended September 30, 2011 and 2010 are as follows:
 
  
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(In millions of dollars)
2011

 
2010

 
2011

 
2010

Risk and Insurance Services
 
 
 
 
 
 
 
Marsh
$
1,221

 
$
1,092

 
$
3,875

 
$
3,481

Guy Carpenter
254

 
235

 
854

 
797

Total Risk and Insurance Services
1,475

 
1,327

 
4,729

 
4,278

Consulting
 
 
 
 
 
 
 
Mercer
975

 
881

 
2,842

 
2,568

Oliver Wyman Group
364

 
322

 
1,077

 
958

Total Consulting
1,339

 
1,203

 
3,919

 
3,526

Total Operating Segments
2,814

 
2,530

 
8,648

 
7,804

Corporate/ Eliminations
(8
)
 
(6
)
 
(30
)
 
(39
)
Total
$
2,806

 
$
2,524

 
$
8,618

 
$
7,765