Restructuring Costs

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

In the fourth quarter of 2022, the Company initiated activities focused on workforce actions, rationalization of technology and functional services, and reductions in real estate. The Company incurred $219 million related to these activities, primarily severance and lease exit charges. Based on current estimates, the Company anticipates that these activities will continue throughout 2023 and into 2024. However, additional charges are unlikely to exceed costs incurred in 2022. The Company's plans are still being finalized, which may change the expected timing, estimates of expected costs and related savings, as the Company continues to refine its detailed plans for each business and location.

Restructuring activities also include charges related to improving the Company's global information technology and HR functions, JLT integration costs, and improving efficiencies and client services related to the Marsh operational excellence program. Expenses also reflect additional lease related exit charges of $89 million in the Risk and Insurance Services segment for a legacy JLT U.K. location.

In 2022, the Company incurred costs related to these initiatives of $427 million, reflecting $254 million in RIS, $77 million in Consulting, and $96 million and in Corporate.

In 2021, the Company incurred restructuring costs of $163 million, reflecting $84 million in RIS, $48 million in Consulting, and $31 million in Corporate.

Details of the restructuring activity from January 1, 2021 through December 31, 2022, are as follows:

(In millions)	Severance		Real Estate Related Costs (a)		Information Technology		Consulting and Other Outside Services		Total
Liability at 1/1/21	$	52	$	51	$	2	$	1	$	106
2021 charges	38		31		23		71		163
Cash payments	(55)		(26)		(25)		(72)		(178)
Non-cash charges	—		(22)		—		—		(22)
Liability at 12/31/21	$	35	$	34	$	—	$	—	$	69
2022 charges	111		195		15		106		427
Cash payments	(58)		(25)		(6)		(104)		(193)
Non-cash charges	—		(148)		(9)		—		(157)
Liability at 12/31/22	$	88	$	56	$	—	$	2	$	146

(a) Includes ROU and fixed asset impairments and other related costs.

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.