Goodwill and Other Intangibles

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

The Company is required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate an impairment may have occurred. The Company performs the annual impairment assessment for each of its reporting units during the third quarter of each year. The reporting unit level is defined as the same level as the Company's operating segments. In accordance with applicable accounting guidance, a company can assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. Alternatively, the Company may elect to proceed directly to the quantitative goodwill impairment test.

In 2023, the Company performed a quantitative goodwill impairment assessment. Fair values for the reporting units were estimated using both an income and market valuation approach. The carrying values were based on balances at June 30, 2023 and included directly identified assets and liabilities, as well as an allocation of those assets and liabilities not recorded at the reporting unit level. The Company concluded that goodwill was not impaired, as the fair value of each reporting unit exceeded the carrying value.

Other intangible assets that are not deemed to have an indefinite life are amortized over their estimated lives and assessed for impairment upon the occurrence of certain triggering events in accordance with applicable accounting literature. Based on its assessment, the Company concluded that other intangible assets were not impaired. The Company had no indefinite lived intangible assets at March 31, 2024 and December 31, 2023.

Changes in the carrying amount of goodwill are as follows:



(In millions)	2024		2023
Balance at January 1,	$	17,231	$	16,251
Goodwill acquired	216		11
Other adjustments (a)	(133)		38
Balance at March 31,	$	17,314	$	16,300

(a) Primarily reflects the impact of foreign exchange.

The goodwill from acquisitions in 2024 and 2023 consists largely of the synergies and economies of scale expected from combining the operations of the Company and the acquired entities and the trained and assembled workforce acquired.

The goodwill acquired in 2024 included approximately $38 million and $81 million in the Risk and Insurance Services and Consulting segments, respectively, which is deductible for tax purposes.

Goodwill allocated to the Company’s reportable segments at March 31, 2024, is $13.2 billion for Risk and Insurance Services and $4.1 billion for Consulting.

The gross cost and accumulated amortization of other identified intangible assets at March 31, 2024 and December 31, 2023 are as follows:


	March 31, 2024						December 31, 2023
(In millions)	Gross Cost		Accumulated Amortization		Net Carrying Amount		Gross Cost		Accumulated Amortization		Net Carrying Amount
Client relationships	$	4,424	$	1,836	$	2,588	$	4,337	$	1,761	$	2,576
Other (a)	369		326		43		391		337		54
Other intangible assets	$	4,793	$	2,162	$	2,631	$	4,728	$	2,098	$	2,630

(a) Primarily non-compete agreements, trade names and developed technology.

Aggregate amortization expense for the three months ended March 31, 2024 and 2023, was $90 million and $85 million, respectively.

The estimated future aggregate amortization expense is as follows:


For the Years Ending December 31,
(In millions)	Estimated Expense
2024 (excludes amortization through March 31, 2024)	$	249
2025	317
2026	294
2027	285
2028	267
Subsequent years	1,219
Total future amortization	$	2,631