XML 51 R38.htm IDEA: XBRL DOCUMENT v3.10.0.1
New Accounting Guidance (Tables)
 6 Months Ended
Jun. 30, 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 June 30,
 
Six Months Ended June 30,
 
 

As Reported
 
Revenue Standard Impact
 
Legacy GAAP
 

As Reported
 
Revenue Standard Impact
 
Legacy GAAP
Revenue
 
$
3,734

 
$
(24
)
 
$
3,710

 
$
7,734

 
$
(185
)
 
$
7,549

Expense:
 
 
 
 
 
 
 
 

 
 

 
 
Compensation and Benefits
 
2,135

 
(10
)
 
2,125

 
4,359

 
(70
)
 
4,289

Other Operating Expenses
 
908

 
—

 
908

 
1,776

 
—

 
1,776

     Operating Expenses
 
3,043

 
(10
)
 
3,033

 
6,135

 
(70
)
 
6,065

Operating Income
 
691

 
(14
)
 
677

 
1,599

 
(115
)
 
1,484

Other Net Benefit Credits
 
65

 
—

 
65

 
131

 
—

 
131

Interest Income
 
3

 
—

 
3

 
6

 
—

 
6

Interest Expense
 
(68
)
 
—

 
(68
)
 
(129
)
 
—

 
(129
)
Investment Income
 
28

 
—

 
28

 
28

 
—

 
28

Income Before Income Taxes
 
719

 
(14
)
 
705

 
1,635

 
(115
)
 
1,520

Income Tax Expense
 
183

 
(4
)
 
179

 
403

 
(30
)
 
373

Net Income Before Non-Controlling Interests
 
536

 
(10
)
 
526

 
1,232

 
(85
)
 
1,147

Less: Net Income Attributable to Non-Controlling Interests
 
5

 
—

 
5

 
11

 
—

 
11

Net Income Attributable to the Company
 
$
531

 
$
(10
)
 
$
521

 
$
1,221

 
$
(85
)
 
$
1,136



The impact of adoption of the new revenue standard on the Company's consolidated balance sheet was as follows (in millions):
 
 
June 30, 2018
 
 
 As Reported
 
Revenue Standard Impact
 
Legacy GAAP
ASSETS
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,036

 
$
—

 
$
1,036

Net receivables
 
4,601

 
(254
)
 
4,347

Other current assets
 
538

 
(298
)
 
240

Total current assets
 
6,175

 
(552
)
 
5,623

Goodwill and intangible assets
 
10,411

 
—

 
10,411

Fixed assets, net
 
698

 
—

 
698

Pension related assets
 
1,808

 
—

 
1,808

Deferred tax assets
 
532

 
133

 
665

Other assets
 
1,535

 
(230
)
 
1,305

     TOTAL ASSETS
 
$
21,159

 
$
(649
)
 
$
20,510

 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
Short-term debt
 
$
439

 
$
—

 
$
439

Accounts payable and accrued liabilities
 
2,246

 
(177
)
 
2,069

Accrued compensation and employee benefits
 
1,103

 
—

 
1,103

Accrued income taxes
 
216

 
—

 
216

Dividends payable
 
212

 
—

 
212

Total current liabilities
 
4,216

 
(177
)
 
4,039

Fiduciary liabilities
 
5,118

 
—

 
5,118

Less - cash and investments held in a fiduciary capacity
 
(5,118
)
 
—

 
(5,118
)
 
 
—

 
—

 
—

Long-term debt
 
5,813

 
—

 
5,813

Pension, post-retirement and post-employment benefits
 
1,768

 
—

 
1,768

Liabilities for errors and omissions
 
303

 
—

 
303

Other liabilities
 
1,262

 
(23
)
 
1,239

Total equity
 
7,797

 
(449
)
 
7,348

     TOTAL LIABILITIES AND EQUITY
 
$
21,159

 
$
(649
)
 
$
20,510


The impact of adoption of the new revenue standard on the Company's consolidated statement of cash flow was as follows (in millions):
 
 
Six Months Ended June 30, 2018
 
 
 As Reported
 
Revenue Standard Impact
 
Legacy GAAP
Operating cash flows:
 
 
 
 
 
 
Net income before non-controlling interests
 
$
1,232

 
$
(85
)
 
$
1,147

Adjustments to reconcile net income to cash provided by operations:
 
 
 
 
 
 
Depreciation and amortization of fixed assets and capitalized software
 
159

 
—

 
159

Amortization of intangible assets
 
88

 
—

 
88

Adjustments and payments related to contingent consideration liability
 
2

 
—

 
2

Provision for deferred income taxes
 
34

 
—

 
34

Gain on investments
 
(28
)
 
—

 
(28
)
Gain on disposition of assets
 
(1
)
 
—

 
(1
)
Share-based compensation expense
 
99

 
—

 
99

Changes in assets and liabilities:
 
 
 
 
 

Net receivables
 
(388
)
 
186

 
(202
)
Other current assets
 
4

 
(20
)
 
(16
)
Other assets
 
(10
)
 
(26
)
 
(36
)
Accounts payable and accrued liabilities
 
30

 
(55
)
 
(25
)
Accrued compensation and employee benefits
 
(614
)
 
—

 
(614
)
Accrued income taxes
 
18

 
—

 
18

Contributions to pension excess of expense/credit
 
(178
)
 
—

 
(178
)
Other liabilities
 
(10
)
 
—

 
(10
)
Effect of exchange rate changes
 
(24
)
 
—

 
(24
)
  Net cash provided by operations
 
$
413

 
$
—

 
$
413

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