EX-99.1 3 dex991.htm AMENDED ITEM 6. SELECTED FINANCIAL DATA OF MMC'S ANNUAL REPORT ON FORM 10-K Amended Item 6. Selected Financial Data of MMC's Annual Report on Form 10-K

Exhibit 99.1

AMENDED ITEM 6. SELECTED FINANCIAL DATA OF MMC’S ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007.

Marsh & McLennan Companies, Inc. and Subsidiaries

FIVE-YEAR STATISTICAL SUMMARY OF OPERATIONS

 

For the Years Ended December 31,

(In millions, except per share figures)

   2007     2006     2005     2004     2003     Compound
Growth Rate
2002-2007
 

Revenue

   $ 11,177     $ 10,340     $ 9,899     $ 9,873     $ 9,148     7 %
                                          

Expenses:

            

Compensation and Benefits

     7,030       6,515       6,327       6,073       5,094     10 %

Other Operating Expenses

     3,301       2,877       3,135       2,853       2,226     12 %

Regulatory and Other Settlements

     —         —         30       618       —      
                                          

Total Expenses

     10,331       9,392       9,492       9,544       7,320     10 %
                                          

Operating Income

     846 (a)     948 (a)     407 (a)     329       1,828     (11 )%

Interest Income

     95       60       44       20       23    

Interest Expense

     (267 )     (303 )     (332 )     (219 )     (185 )  

Investment Income (Loss) (b)

     173       207       183       153       105     8 %
                                          

Income Before Income Taxes and Minority Interest

     847       912       302       283       1,771     (11 )%

Income Taxes

     295       272       95       100       555    

Minority Interest, Net of Tax

     14       8       6       8       8    
                                          

Income From Continuing Operations

     538       632       201       175       1,208     (12 )%

Discontinued Operations, Net of Tax

     1,937       358       203       1       332     39 %
                                          

Net Income

   $ 2,475     $ 990     $ 404     $ 176     $ 1,540     13 %
                                          

Basic Income Per Share Information:

            

Income From Continuing Operations

   $ 1.00     $ 1.15     $ 0.37     $ 0.33     $ 2.27     (11 )%

Income From Discontinued Operations

   $ 3.60     $ 0.65     $ 0.38     $ —       $ 0.62     40 %

Net Income

   $ 4.60     $ 1.80     $ 0.75     $ 0.33     $ 2.89     13 %

Average Number of Shares Outstanding

     539       549       538       526       533    
                                          

Diluted Income Per Share Information:

            

Income From Continuing Operations

   $ 0.99     $ 1.14     $ 0.37     $ 0.33     $ 2.21     (11 )%

Income From Discontinued Operations

   $ 3.54     $ 0.62     $ 0.37     $ —       $ 0.60     40 %

Net Income

   $ 4.53     $ 1.76     $ 0.74     $ 0.33     $ 2.81     13 %

Average Number of Shares Outstanding

     546       557       543       535       548    
                                          

Dividends Paid Per Share

   $ 0.76     $ 0.68     $ 0.68     $ 1.30     $ 1.18     (7 )%

Return on Average Stockholders’ Equity

     36 %     18 %     8 %     3 %     29 %  

Year-end Financial Position:

            

Working capital

   $ 1,961     $ 1,058     $ 1,390     $ (258 )   $ 920    

Total assets

   $ 17,359     $ 18,137     $ 17,892     $ 18,498     $ 15,053    

Long-term debt

   $ 3,604     $ 3,860     $ 5,044     $ 4,691     $ 2,910    

Stockholders’ equity

   $ 7,822     $ 5,819     $ 5,360     $ 5,056     $ 5,451    

Total shares outstanding (net of treasury shares)

     520       552       546       527       527    

Other Information:

            

Number of employees

     56,100       52,600       51,900       59,300       55,200    

Stock price ranges–

            

U.S. exchanges – High

   $ 33.90     $ 32.73     $ 34.25     $ 49.69     $ 54.97    

                          – Low

   $ 23.12     $ 24.00     $ 26.67     $ 22.75     $ 38.27        

 

(a) Includes net restructuring costs of $98 million, $87 million and $317 million in 2007, 2006 and 2005, respectively.
(b) Investment gains and losses derived from investments strategically linked to MMC’s operating companies, predominantly related to Risk Capital Holdings are now presented outside MMC’s operating income.

See Management’s Discussion and Analysis of Financial Condition and Results of Operations, appearing under Part II, Item 7 of this report, for discussion of significant items affecting our results of operations in 2007, 2006 and 2005.

 

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