Restructuring Costs

9 Months Ended

Sep. 30, 2018

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

During the second quarter of 2018, Marsh initiated a program to simplify the organization through reduced management layers and more common structures across regions and businesses to more closely align with its more formalized segmentation strategy across large risk management, middle market corporate, and small commercial & personal segments. These efforts are expected to create increased efficiencies and additional capacity for reinvestment in people and technology. As of September 30, 2018, the Company has incurred restructuring severance and consulting costs of $84 million related to this initiative.

In addition to the changes discussed above, the Company incurred $11 million of restructuring costs related to severance and future rent under non-cancelable leases. These costs were incurred in Risk and Insurance Services ($3 million), Consulting ($1 million) and Corporate ($7 million).

Details of the restructuring activity from January 1, 2017 through September 30, 2018, which includes liabilities from actions prior to 2018, are as follows:

(In millions)	Liability at 1/1/17		Amounts Accrued		Cash Paid			Other		Liability at 12/31/17		Amounts Accrued		Cash Paid			Other		Liability at 9/30/18
Severance	$	32	$	31	$	(49	)	$	1	$	15	$	78	$	(52	)	$	2	$	43
Future rent under non-cancelable leases and other costs	61		9		(22		)	2		50		17		(28		)	1		40
Total	$	93	$	40	$	(71	)	$	3	$	65	$	95	$	(80	)	$	3	$	83

The expenses associated with the above initiatives are included in compensation and benefits and other operating expenses in the consolidated statements of income. The liabilities associated with these initiatives are classified on the consolidated balance sheets as accounts payable and accrued liabilities, other liabilities or accrued compensation and employee benefits, depending on the nature of the items.