Restructuring Costs

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

JLT Related Integration and Restructuring

The costs incurred in connection with the integration and restructuring of the combined businesses, primarily related to severance, real estate and technology rationalization, process management consulting fees, and legal fees for the rationalization of legal entity structures.

Since the acquisition of JLT, the Company has incurred JLT integration and restructuring costs of $679 million through December 31, 2021. This reflects $93 million and $251 million of costs incurred for the year ended December 31, 2021, and 2020, respectively.

Costs recognized are based on applicable accounting guidance which includes accounting for disposal or exit activities, guidance related to impairment of long lived assets (for right of use assets related to real estate leases), as well as other costs resulting from accelerated depreciation or amortization of leasehold improvements and other property and equipment. The Company is expected to complete the integration of JLT during 2022.

In connection with the JLT integration and restructuring, for the year ended December 31, 2021, the Company incurred costs of $93 million: $53 million in RIS, $36 million in Consulting, $4 million in Corporate. The severance and related costs were included in compensation and benefits and the other costs were included in other operating expenses in the consolidated statement of income.

Details of the JLT integration and restructuring activity from January 1, 2020 through December 31, 2021, are as follows:

(In millions)	Severance		Real Estate Related Costs (a)		Information Technology (a)		Consulting and Other Outside Services (b)		Total
Liability at 1/1/20	$	42	$	5	$	—	$	—	$	47
2020 charges	43		69		62		77		251
Cash payments	(69)		(25)		(55)		(77)		(226)
Non-cash charges	—		(42)		(5)		—		(47)
Liability at 12/31/20	$	16	$	7	$	2	$	—	$	25
2021 charges	14		26		23		30		93
Cash payments	(13)		(12)		(25)		(30)		(80)
Non-cash charges	—		(17)		—		—		(17)
Liability at 12/31/21	$	17	$	4	$	—	$	—	$	21

(a) Includes ROU asset impairments, data center contract termination costs and temporary infrastructure leasing costs.

(b) Includes consulting fees related to the management of the integration processes and legal fees related to the rationalization of legal entity structures.

Other Restructuring

The Company has initiated other restructuring actions related to improving and streamlining the Company's global information technology and HR functions, improving efficiencies and client services related to Marsh's Centers of Excellence program and adjustments to restructuring liabilities for future rent under non-cancellable leases. For the year ended December 31, 2021, the Company incurred costs of $70 million, reflecting $31 million in RIS, $12 million in Consulting and $27 million in Corporate related to these initiatives.

The following details the other restructuring liabilities for actions initiated during 2021 and prior:

(In millions)	Liability at 1/1/20		Amounts Accrued		Cash Paid		Non-Cash/Other		Liability at 12/31/20		Amounts Accrued		Cash Paid		Non-Cash/Other		Liability at 12/31/21
Severance	$	51	$	39	$	(54)	$	—	$	36	$	24	$	(42)	$	—	$	18
Future rent under non-cancelable leases and other costs	51		50		(46)		(10)		45		46		(56)		(5)		30
Total	$	102	$	89	$	(100)	$	(10)	$	81	$	70	$	(98)	$	(5)	$	48

The expenses associated with these 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.