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New Accounting Guidance (Tables)
 9 Months Ended
Sep. 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 Sept. 30,
 
Nine Months Ended Sept. 30,
 
 

As Reported
 
Revenue Standard Impact
 
Legacy GAAP
 

As Reported
 
Revenue Standard Impact
 
Legacy GAAP
Revenue
 
$
3,504

 
$
58

 
$
3,562

 
$
11,238

 
$
(127
)
 
$
11,111

Expense:
 
 
 
 
 
 
 
 

 
 

 
 
Compensation and benefits
 
2,083

 
12

 
2,095

 
6,442

 
(58
)
 
6,384

Other operating expenses
 
880

 
—

 
880

 
2,656

 
—

 
2,656

     Operating expenses
 
2,963

 
12

 
2,975

 
9,098

 
(58
)
 
9,040

Operating income
 
541

 
46

 
587

 
2,140

 
(69
)
 
2,071

Other net benefit credits
 
63

 
—

 
63

 
194

 
—

 
194

Interest income
 
2

 
—

 
2

 
8

 
—

 
8

Interest expense
 
(69
)
 
—

 
(69
)
 
(198
)
 
—

 
(198
)
Investment (loss)
 
(52
)
 
—

 
(52
)
 
(24
)
 
—

 
(24
)
Change in fair value of acquisition related FX contract
 
(100
)
 
—

 
(100
)
 
(100
)
 
—

 
(100
)
Income before income taxes
 
385

 
46

 
431

 
2,020

 
(69
)
 
1,951

Income tax expense
 
106

 
12

 
118

 
509

 
(18
)
 
491

Net income before non-controlling interests
 
279

 
34

 
313

 
1,511

 
(51
)
 
1,460

Less: Net income attributable to non-controlling interests
 
3

 
—

 
3

 
14

 
—

 
14

Net income attributable to the Company
 
$
276

 
$
34

 
$
310

 
$
1,497

 
$
(51
)
 
$
1,446

The impact of adoption of the new revenue standard on the Company's consolidated balance sheet was as follows (in millions):
 
 
September 30, 2018
 
 
 As Reported
 
Revenue Standard Impact
 
Legacy GAAP
ASSETS
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 
$
951

 
$
—

 
$
951

Net receivables
 
4,476

 
(175
)
 
4,301

Other current assets
 
539

 
(290
)
 
249

Total current assets
 
5,966

 
(465
)
 
5,501

Goodwill and intangible assets
 
10,764

 
—

 
10,764

Fixed assets, net
 
707

 
—

 
707

Pension related assets
 
1,814

 
—

 
1,814

Deferred tax assets
 
497

 
121

 
618

Other assets
 
1,381

 
(238
)
 
1,143

     TOTAL ASSETS
 
$
21,129

 
$
(582
)
 
$
20,547

 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
Short-term debt
 
$
638

 
$
—

 
$
638

Accounts payable and accrued liabilities
 
2,293

 
(143
)
 
2,150

Accrued compensation and employee benefits
 
1,406

 
—

 
1,406

Accrued income taxes
 
179

 
—

 
179

Dividends payable
 
211

 
—

 
211

Total current liabilities
 
4,727

 
(143
)
 
4,584

Fiduciary liabilities
 
5,185

 
—

 
5,185

Less - cash and investments held in a fiduciary capacity
 
(5,185
)
 
—

 
(5,185
)
 
 
—

 
—

 
—

Long-term debt
 
5,512

 
—

 
5,512

Pension, post-retirement and post-employment benefits
 
1,727

 
—

 
1,727

Liabilities for errors and omissions
 
303

 
—

 
303

Other liabilities
 
1,322

 
(24
)
 
1,298

Total equity
 
7,538

 
(415
)
 
7,123

     TOTAL LIABILITIES AND EQUITY
 
$
21,129

 
$
(582
)
 
$
20,547


The impact of adoption of the new revenue standard on the Company's consolidated statement of cash flow was as follows (in millions):
 
 
Nine Months Ended September 30, 2018
 
 
 As Reported
 
Revenue Standard Impact
 
Legacy GAAP
Operating cash flows:
 
 
 
 
 
 
Net income before non-controlling interests
 
$
1,511

 
$
(51
)
 
$
1,460

Adjustments to reconcile net income to cash provided by operations:
 
 
 
 
 
 
Depreciation and amortization of fixed assets and capitalized software
 
236

 
—

 
236

Amortization of intangible assets
 
135

 
—

 
135

Adjustments and payments related to contingent consideration liability
 
(10
)
 
—

 
(10
)
Provision for deferred income taxes
 
66

 
—

 
66

Gain on investments
 
24

 
—

 
24

Gain on disposition of assets
 
(53
)
 
—

 
(53
)
Share-based compensation expense
 
146

 
—

 
146

Change in fair value of acquisition related FX contract
 
100

 
—

 
100

Changes in assets and liabilities:
 
 
 
 
 

Net receivables
 
(210
)
 
107

 
(103
)
Other current assets
 
19

 
(28
)
 
(9
)
Other assets
 
(51
)
 
(6
)
 
(57
)
Accounts payable and accrued liabilities
 
(3
)
 
(21
)
 
(24
)
Accrued compensation and employee benefits
 
(312
)
 
—

 
(312
)
Accrued income taxes
 
(13
)
 
—

 
(13
)
Contributions to pension excess of expense/credit
 
(250
)
 
—

 
(250
)
Other liabilities
 
11

 
(1
)
 
10

Effect of exchange rate changes
 
(27
)
 
—

 
(27
)
  Net cash provided by operations
 
$
1,319

 
$
—

 
$
1,319

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