Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Components of fixed assets

The components of fixed assets are as follows:

December 31,
(In millions of dollars)	2018			2017
Furniture and equipment	$	1,159		$	1,179
Land and buildings	377			385
Leasehold and building improvements	1,007			974
	2,543			2,538
Less-accumulated depreciation and amortization	(1,842		)	(1,826		)
	$	701		$	712

Diluted earnings per share for continuing operations

Reconciliations of the applicable components used to calculate basic and diluted EPS - Continuing Operations are presented below. The reconciling items related to the EPS calculation are the same for both basic and diluted EPS.

Basic and Diluted EPS Calculation - Continuing Operations
(In millions, except per share figures)	2018		2017		2016
Net income from continuing operations	$	1,670	$	1,510	$	1,795
Less: Net income attributable to non-controlling interests	20		20		27
	$	1,650	$	1,490	$	1,768
Basic weighted average common shares outstanding	506		513		519
Dilutive effect of potentially issuable common shares	5		6		5
Diluted weighted average common shares outstanding	511		519		524
Average stock price used to calculate common stock equivalents	$	83.13	$	77.30	$	63.51

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):

	For the Year Ended December 31, 2018
	As Reported			Revenue Standard Impact			Legacy GAAP
Revenue	$	14,950		$	2		$	14,952
Expense:
Compensation and benefits	8,605			17			8,622
Other operating expenses	3,584			—			3,584
Operating expenses	12,189			17			12,206
Operating income	2,761			(15		)	2,746
Other net benefit credits	215			—			215
Interest income	11			—			11
Interest expense	(290		)	—			(290		)
Investment (loss) income	(12		)	—			(12		)
Acquisition related derivative contracts	(441		)	—			(441		)
Income before income taxes	2,244			(15		)	2,229
Income tax expense	574			(4		)	570
Net income before non-controlling interests	1,670			(11		)	1,659
Less: Net income attributable to non-controlling interests	20			—			20
Net income attributable to the Company	$	1,650		$	(11	)	$	1,639

The impact of adoption of the new revenue standard on the Company's consolidated balance sheet was as follows (in millions):

	December 31, 2018
	As Reported			Revenue Standard Impact			Legacy GAAP
ASSETS
Current assets:
Cash and cash equivalents	$	1,066		$	—		$	1,066
Net receivables	4,317			(68		)	4,249
Other current assets	551			(326		)	225
Total current assets	5,934			(394		)	5,540
Goodwill and intangible assets	11,036			—			11,036
Fixed assets, net	701			—			701
Pension related assets	1,688			—			1,688
Deferred tax assets	680			107			787
Other assets	1,539			(242		)	1,297
TOTAL ASSETS	$	21,578		$	(529	)	$	21,049
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt	$	314		$	—		$	314
Accounts payable and accrued liabilities	2,234			(129		)	2,105
Accrued compensation and employee benefits	1,778			—			1,778
Acquisition related derivatives	441			—			441
Accrued income taxes	157			—			157
Total current liabilities	4,924			(129		)	4,795
Fiduciary liabilities	5,001			—			5,001
Less - cash and investments held in a fiduciary capacity	(5,001		)	—			(5,001		)
	—			—			—
Long-term debt	5,510			—			5,510
Pension, post-retirement and post-employment benefits	1,911			—			1,911
Liabilities for errors and omissions	287			—			287
Other liabilities	1,362			(25		)	1,337
Total equity	7,584			(375		)	7,209
TOTAL LIABILITIES AND EQUITY	$	21,578		$	(529	)	$	21,049

The impact of adoption of the new revenue standard on the Company's consolidated statement of cash flow was as follows (in millions):

	Twelve Months Ended December 31, 2018
	As Reported			Revenue Standard Impact			Legacy GAAP
Operating cash flows:
Net income before non-controlling interests	$	1,670		$	(11	)	$	1,659
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization of fixed assets and capitalized software	311			—			311
Amortization of intangible assets	183			—			183
Adjustments and payments related to contingent consideration liability	(4		)	—			(4		)
Loss on deconsolidation of entity	11			—			11
Benefit for deferred income taxes	(39		)	—			(39		)
Loss on investments	12			—			12
Gain on disposition of assets	(48		)	—			(48		)
Change in fair value of acquisition related derivative contracts	441			—			441
Share-based compensation expense	193			—			193
Changes in assets and liabilities:
Net receivables	(78		)	—			(78		)
Other current assets	26			8			34
Other assets	(37		)	12			(25		)
Accounts payable and accrued liabilities	23			(7		)	16
Accrued compensation and employee benefits	68			—			68
Accrued income taxes	(40		)	—			(40		)
Contributions to pension and other benefit plans in excess of current year expense/credit	(291		)	—			(291		)
Other liabilities	9			(2		)	7
Effect of exchange rate changes	18			—			18
Net cash provided by operations	$	2,428		$	—		$	2,428

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