XML 58 R38.htm IDEA: XBRL DOCUMENT v3.8.0.1
New Accounting Guidance (Tables)
 3 Months Ended
Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The impact of adoption of the new revenue standard on the Company's consolidated income statement was as follows (in millions):
 
 
 
Three Months Ended
March 31, 2018
 
 
 

As Reported
 
Revenue Standard Impact
 
Legacy GAAP
Revenue
 
 
$
4,000

 
$
(161
)
 
$
3,839

Expense:
 
 
 

 
 

 
 
Compensation and Benefits
 
 
2,224

 
(60
)
 
2,164

Other Operating Expenses
 
 
868

 
—

 
868

     Operating Expenses
 
 
3,092

 
(60
)
 
3,032

Operating Income
 
 
908

 
(101
)
 
807

Other Net Benefit Credits
 
 
66

 
—

 
66

Interest Income
 
 
3

 
—

 
3

Interest Expense
 
 
(61
)
 
—

 
(61
)
Income Before Income Taxes
 
 
916

 
(101
)
 
815

Income Tax Expense
 
 
220

 
(26
)
 
194

Net Income Before Non-Controlling Interests
 
 
696

 
(75
)
 
621

Less: Net Income Attributable to Non-Controlling Interests
 
 
6

 
—

 
6

Net Income Attributable to the Company
 
 
$
690

 
$
(75
)
 
$
615



The impact of adoption of the new revenue standard on the Company's consolidated balance sheet was as follows (in millions):
 
 
March 31, 2018
 
 
 As Reported
 
Revenue Standard Impact
 
Legacy GAAP
ASSETS
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,168

 
$
—

 
$
1,168

Net receivables
 
4,562

 
(242
)
 
4,320

Other current assets
 
540

 
(294
)
 
246

Total current assets
 
6,270

 
(536
)
 
5,734

Goodwill and intangible assets
 
10,450

 
—

 
10,450

Fixed assets, net
 
713

 
—

 
713

Pension related assets
 
1,857

 
—

 
1,857

Deferred tax assets
 
554

 
119

 
673

Other assets
 
1,535

 
(231
)
 
1,304

     TOTAL ASSETS
 
$
21,379

 
$
(648
)
 
$
20,731

 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
Short-term debt
 
$
512

 
$
—

 
$
512

Accounts payable and accrued liabilities
 
2,343

 
(176
)
 
2,167

Accrued compensation and employee benefits
 
813

 
—

 
813

Accrued income taxes
 
261

 
—

 
261

Dividends payable
 
193

 
—

 
193

Total current liabilities
 
4,122

 
(176
)
 
3,946

Fiduciary liabilities
 
5,140

 
—

 
5,140

Less - cash and investments held in a fiduciary capacity
 
(5,140
)
 
—

 
(5,140
)
 
 
—

 
—

 
—

Long-term debt
 
5,815

 
—

 
5,815

Pension, post-retirement and post-employment benefits
 
1,842

 
—

 
1,842

Liabilities for errors and omissions
 
312

 
—

 
312

Other liabilities
 
1,267

 
(33
)
 
1,234

Total equity
 
8,021

 
(439
)
 
7,582

     TOTAL LIABILITIES AND EQUITY
 
$
21,379

 
$
(648
)
 
$
20,731












The impact of adoption of the new revenue standard on the Company's consolidated statement of cash flow was as follows (in millions):
 
 
Three Months Ended
March 31, 2018
 
 
 As Reported
 
Revenue Standard Impact
 
Legacy GAAP
Operating cash flows:
 
 
 
 
 
 
Net income before non-controlling interests
 
$
696

 
$
(75
)
 
$
621

Adjustments to reconcile net income to cash used for operations:
 
 
 
 
 
 
Depreciation and amortization of fixed assets and capitalized software
 
80

 
—

 
80

Amortization of intangible assets
 
45

 
—

 
45

Adjustments and payments related to contingent consideration liability
 
(5
)
 
—

 
(5
)
Provision for deferred income taxes loss on disposal of assets
 
11

 
—

 
11

Gain on disposition of assets
 
(1
)
 
—

 
(1
)
Share-based compensation expense
 
50

 
—

 
50

Changes in assets and liabilities:
 
 
 
 
 

Net receivables
 
(357
)
 
174

 
(183
)
Other current assets
 
2

 
(24
)
 
(22
)
Other assets
 
(32
)
 
(11
)
 
(43
)
Accounts payable and accrued liabilities
 
135

 
(54
)
 
81

Accrued compensation and employee benefits
 
(905
)
 
—

 
(905
)
Accrued income taxes
 
61

 
—

 
61

Contributions to pension excess of expense/credit
 
(96
)
 
—

 
(96
)
Other liabilities
 
17

 
(10
)
 
7

Effect of exchange rate changes
 
(65
)
 
—

 
(65
)
  Net cash used for operations
 
$
(364
)
 
$
—

 
$
(364
)
The adoption of the revenue recognition standard did not have an impact on the Company's financing or investing cash flows.
New Accounting Pronouncement, Early Adoption
The impact on the Company's balance sheet as of January 1, 2018 related to the adoption of the accounting standards using the modified retrospective approach as discussed above is as follows:
 
 
 
Adjustments
 
 
 
Balance at December 31, 2017
 
Revenue Recognition
 
Financial Instruments
 
Intra-Entity Transfer
 
Balance at January 1, 2018
Balance Sheet
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Net Receivables
$
4,133

 
$
68

 
$
—

 
$
—

 
$
4,201

Other Current Assets
224

 
318

 
—

 
—

 
542

Other Assets
1,430

 
226

 
—

 
—

 
1,656

Deferred Tax Assets
669

 
(103
)
 
—

 
(14
)
 
552

Liabilities
 
 
 
 
 
 
 
 
 
Accounts Payable and Accrued Liabilities
2,083

 
122

 
—

 
—

 
2,205

Other Liabilities
1,311

 
23

 
—

 
—

 
1,334

Equity
 
 
 
 
 
 
 
 
 
Other Accumulated Comprehensive Income
—

 
—

 
(14
)
 
—

 
(14
)
Retained Earnings
$
13,140

 
$
364

 
$
14

 
$
(14
)
 
$
13,504