EX-99.1 2 quarterlyproformaex991.htm SUPPLEMENTAL SCHEDULES Exhibit


Exhibit 99.1
Marsh & McLennan Companies, Inc.
JLT Supplemental Information – Revenue Analysis
For the Year Ended December 31, 2018
(Millions) (Unaudited)
JLT revenue is presented below, and reflects certain transfers among the business lines to conform with the expected inclusion in MMC segment and business results.
 
 
First
Quarter
 
Second Quarter
 
Third
Quarter
 
Fourth Quarter
 
Full
Year
Specialty
 
$
244

 
$
352

 
$
259

 
$
406

 
$
1,261

Reinsurance
 
124

 
74

 
33

 
48

 
279

Fiduciary Interest Income
 
3

 
4

 
5

 
5

 
17

Health & Benefits
 
86

 
86

 
86

 
99

 
357

Total Revenue
 
$
457

 
$
516

 
$
383

 
$
558

 
$
1,914

In future earnings releases Specialty will be included as a component of Marsh, Reinsurance as a component of Guy Carpenter and Health & Benefits as a component of Mercer.

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Marsh & McLennan Companies, Inc.
JLT Supplemental Information Adjusted Operating Income Information*
For the Year Ended December 31, 2018
(Millions) (Unaudited)
 
First
Quarter
 
Second Quarter
 
Third
Quarter
 
Fourth Quarter
 
Full
Year
Revenue
$
457

 
$
516

 
$
383

 
$
558

 
$
1,914

Expense:
 
 
 
 
 
 
 
 
 
Compensation and Benefits
314

 
318

 
300

 
278

 
1,210

Other Operating Expenses
117

 
115

 
103

 
146

 
481

Operating Expenses
431

 
433

 
403

 
424

 
1,691

Operating Income
$
26

 
$
83

 
$
(20
)
 
$
134

 
$
223

Noteworthy Items:
 
 
 
 
 
 
 
 
 
Restructuring
12

 
12

 
6

 
7

 
37

Regulatory Review

 
2

 

 
47

 
49

Other

 

 

 
4

 
4

Total Adjustments
$
12

 
$
14

 
$
6

 
$
58

 
$
90

Supplemental Adjusted Operating Income
$
38

 
$
97

 
$
(14
)
 
$
192

 
$
313

*See Note 1 for discussion of Non-GAAP measures.

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Marsh & McLennan Companies, Inc.
Supplemental Information Basis for Presentation Non-GAAP Information
Note 1: Financial information included herein reflects the following:
The unaudited financial information presented herein is derived from the column "Conformed JLT (U.S. GAAP)” included on page 2 of the Company’s Form 8-K/A filed on June 6, 2019. This information includes the reclassifications and adjustments to JLT’s historical IFRS income statement described in Notes 3 and 5 of that 8-K/A filing. The operating income of $223 million includes the results of JLT’s aerospace business and excludes the incremental amortization of intangibles related to the JLT acquisition.
Non-GAAP Measures:
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (referred to as "GAAP" or "As Reported" results). The Company also refers to and presents certain additional non-GAAP financial measures, within the meaning of Regulation G under the Securities Exchange Act of 1934. All information included herein is non-GAAP.
The Company believes these non-GAAP financial measures provide useful supplemental information that enables investors to better compare the Company’s performance across periods. Management also uses these measures internally to assess the operating performance of its businesses, to assess performance for employee compensation purposes and to decide how to allocate resources. However, investors should not consider these non-GAAP measures in isolation from, or as a substitute for, the financial information that the Company reports in accordance with GAAP. The Company’s non-GAAP measures include adjustments that reflect how management views our businesses, and may differ from similarly titled non-GAAP measures presented by other companies.
Supplemental Adjusted Operating Income (Loss)
Adjusted operating income (loss) is calculated by excluding the impact of certain noteworthy items from the Company’s GAAP operating income or loss. The tables in the Company’s quarterly earnings releases identify these noteworthy items and reconcile adjusted operating income (loss) to GAAP operating income or loss, on a consolidated and segment basis. The non-GAAP adjustments reflected in the attached supplemental financial information are intended to provide investors with similar information related to JLT’s 2018 results. The noteworthy items related to JLT are included in the Adjusted Operating Income Information schedule.

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