01/27/2022 | Press release | Distributed by Public on 01/27/2022 06:09
Marsh & McLennan Companies, Inc.
Consolidated Statements of Income
(In millions, except per share data)
(Unaudited)
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Three Months Ended December 31, |
Twelve Months Ended December 31, |
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2021 | 2020 | 2021 | 2020 | |||||
Revenue | $ | 5,137 | $ | 4,416 | $ | 19,820 | $ | 17,224 |
Expense: | ||||||||
Compensation and benefits | 2,905 | 2,650 | 11,425 | 10,129 | ||||
Other operating expenses | 1,246 | 1,195 | 4,083 | 4,029 | ||||
Operating expenses | 4,151 | 3,845 | 15,508 | 14,158 | ||||
Operating income | 986 | 571 | 4,312 | 3,066 | ||||
Other net benefit credits | 66 | 70 | 277 | 257 | ||||
Interest income | - | 2 | 2 | 7 | ||||
Interest expense | (109) | (128) | (444) | (515) | ||||
Investment income (loss) | 18 | 25 | 61 | (22) | ||||
Income before income taxes | 961 | 540 | 4,208 | 2,793 | ||||
Income tax expense | 154 | 161 | 1,034 | 747 | ||||
Net income before non-controlling interests | 807 | 379 | 3,174 | 2,046 | ||||
Less: net income attributable to non-controlling interests | 4 | 5 | 31 | 30 | ||||
Net income attributable to the Company | $ | 803 | $ | 374 | $ | 3,143 | $ | 2,016 |
Net income per share attributable to the Company | ||||||||
- Basic
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$ | 1.59 | $ | 0.74 | $ | 6.20 | $ | 3.98 |
- Diluted
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$ | 1.57 | $ | 0.73 | $ | 6.13 | $ | 3.94 |
Average number of shares outstanding | ||||||||
- Basic
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504 | 507 | 507 | 506 | ||||
- Diluted
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511 | 513 | 513 | 512 | ||||
Shares outstanding at December 31 | 504 | 508 | 504 | 508 |
Components of Revenue Change* | |||||||||||
Three Months Ended December 31, | % Change GAAP Revenue | Currency Impact |
Acquisitions/ Dispositions/ Other Impact |
Underlying Revenue | |||||||
2021 | 2020 | ||||||||||
Risk and Insurance Services | |||||||||||
Marsh | $ | 2,876 | $ | 2,364 | 22 | % | - | 13 | % | 9 | % |
Guy Carpenter | 170 | 162 | 4 | % | (1) | % | - | 5 | % | ||
Subtotal | 3,046 | 2,526 | 21 | % | - | 12 | % | 9 | % | ||
Fiduciary Interest Income | 3 | 6 | |||||||||
Total Risk and Insurance Services | 3,049 | 2,532 | 20 | % | - | 12 | % | 9 | % | ||
Consulting | |||||||||||
Mercer | 1,377 | 1,312 | 5 | % | - | (1) | % | 6 | % | ||
Oliver Wyman Group | 722 | 590 | 22 | % | (1) | % | 1 | % | 22 | % | |
Total Consulting | 2,099 | 1,902 | 10 | % | - | - | 11 | % | |||
Corporate Eliminations | (11) | (18) | |||||||||
Total Revenue | $ | 5,137 | $ | 4,416 | 16 | % | - | 7 | % | 10 | % |
Components of Revenue Change* | ||||||||||||
Three Months Ended December 31, | % Change GAAP Revenue | Currency Impact |
Acquisitions/ Dispositions/ Other Impact |
Underlying Revenue | ||||||||
2021 | 2020 | |||||||||||
Marsh: | ||||||||||||
EMEA | $ | 713 | $ | 688 | 4 | % | (1) | % | (1) | % | 5 | % |
Asia Pacific | 560 | 269 | 109 | % | (1) | % | 100 | % | 10 | % | ||
Latin America | 155 | 141 | 10 | % | (4) | % | - | 14 | % | |||
Total International | 1,428 | 1,098 | 30 | % | (1) | % | 24 | % | 7 | % | ||
U.S./Canada | 1,448 | 1,266 | 14 | % | - | 3 | % | 11 | % | |||
Total Marsh | $ | 2,876 | $ | 2,364 | 22 | % | - | 13 | % | 9 | % | |
Mercer: | ||||||||||||
Wealth | $ | 648 | $ | 629 | 3 | % | - | (1) | % | 4 | % | |
Health | 457 | 445 | 3 | % | (1) | % | (1) | % | 4 | % | ||
Career | 272 | 238 | 14 | % | (1) | % | - | 15 | % | |||
Total Mercer | $ | 1,377 | $ | 1,312 | 5 | % | - | (1) | % | 6 | % |
* Components of revenue change may not add due to rounding. |
Components of Revenue Change* | ||||||||||||
Twelve Months Ended December 31, |
% Change GAAP Revenue | Currency Impact |
Acquisitions/ Dispositions/ Other Impact |
Underlying Revenue | ||||||||
2021 | 2020 | |||||||||||
Risk and Insurance Services | ||||||||||||
Marsh | $ | 10,203 | $ | 8,595 | 19 | % | 2 | % | 6 | % | 11 | % |
Guy Carpenter | 1,867 | 1,696 | 10 | % | 1 | % | - | 9 | % | |||
Subtotal | 12,070 | 10,291 | 17 | % | 2 | % | 5 | % | 11 | % | ||
Fiduciary Interest Income | 15 | 46 | ||||||||||
Total Risk and Insurance Services | 12,085 | 10,337 | 17 | % | 2 | % | 5 | % | 10 | % | ||
Consulting | ||||||||||||
Mercer | 5,254 | 4,928 | 7 | % | 3 | % | (1) | % | 5 | % | ||
Oliver Wyman Group | 2,535 | 2,048 | 24 | % | 2 | % | - | 21 | % | |||
Total Consulting | 7,789 | 6,976 | 12 | % | 3 | % | - | 10 | % | |||
Corporate Eliminations | (54) | (89) | ||||||||||
Total Revenue | $ | 19,820 | $ | 17,224 | 15 | % | 2 | % | 3 | % | 10 | % |
Components of Revenue Change* | ||||||||||||
Twelve Months Ended December 31, |
% Change GAAP Revenue |
Currency Impact |
Acquisitions/ Dispositions/ Other Impact |
Underlying Revenue | ||||||||
2021 | 2020 | |||||||||||
Marsh: | ||||||||||||
EMEA | $ | 2,946 | $ | 2,575 | 14 | % | 4 | % | 1 | % | 9 | % |
Asia Pacific | 1,462 | 1,059 | 38 | % | 4 | % | 25 | % | 9 | % | ||
Latin America | 453 | 424 | 7 | % | (2) | % | - | 9 | % | |||
Total International | 4,861 | 4,058 | 20 | % | 4 | % | 7 | % | 9 | % | ||
U.S./Canada | 5,342 | 4,537 | 18 | % | 1 | % | 4 | % | 13 | % | ||
Total Marsh | $ | 10,203 | $ | 8,595 | 19 | % | 2 | % | 6 | % | 11 | % |
Mercer: | ||||||||||||
Wealth | $ | 2,509 | $ | 2,348 | 7 | % | 4 | % | (1) | % | 4 | % |
Health | 1,855 | 1,793 | 3 | % | 1 | % | (1) | % | 3 | % | ||
Career | 890 | 787 | 13 | % | 2 | % | - | 12 | % | |||
Total Mercer | $ | 5,254 | $ | 4,928 | 7 | % | 3 | % | (1) | % | 5 | % |
* Components of revenue change may not add due to rounding. |
Overview |
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (referred to in this release as in accordance with "GAAP" or "reported" results). The Company also refers to and presents certain additional non-GAAP financial measures, within the meaning of Regulation G in accordance with the Securities Exchange Act of 1934. These measures are: adjusted operating income (loss), adjusted operating margin, adjusted income, net of tax and adjusted earnings per share (EPS). The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP in the following tables.
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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, 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 its businesses, and may differ from similarly titled non-GAAP measures presented by other companies. |
Adjusted Operating Income (Loss) and Adjusted Operating Margin |
Adjusted operating income (loss) is calculated by excluding the impact of certain noteworthy items from the Company's GAAP operating income (loss). The following tables identify these noteworthy items and reconcile adjusted operating income (loss) to GAAP operating income (loss), on a consolidated and reportable segment basis, for the three and twelve month periods ended December 31, 2021 and 2020. The following tables also present adjusted operating margin. For the three and twelve months ended December 31, 2021 and 2020, adjusted operating margin is calculated by dividing the sum of adjusted operating income and identified intangible asset amortization by consolidated or segment adjusted revenue.
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Risk & Insurance Services | Consulting |
Corporate/ Eliminations |
Total | |||||
Three Months Ended December 31, 2021 | ||||||||
Operating income (loss) | $ | 667 | $ | 395 | $ | (76) | $ | 986 |
Operating margin | 21.9 | % | 18.8 | % | N/A | 19.2 | % | |
Add (deduct) impact of noteworthy items: | ||||||||
Restructuring, excluding JLT (a) | 19 | 4 | 12 | 35 | ||||
Changes in contingent consideration (b) | 45 | 1 | - | 46 | ||||
JLT integration and restructuring costs (c) | 15 | 15 | 2 | 32 | ||||
JLT acquisition-related costs and other (d) | 45 | 1 | - | 46 | ||||
JLT legacy E&O provision (e) | - | (6) | - | (6) | ||||
Legal claims (f) | 33 | - | - | 33 | ||||
Gain on consolidation of business (g) | (267) | - | - | (267) | ||||
Operating income adjustments | (110) | 15 | 14 | (81) | ||||
Adjusted operating income (loss) | $ | 557 | $ | 410 | $ | (62) | $ | 905 |
Total identified intangible amortization expense | $ | 73 | $ | 14 | $ | - | $ | 87 |
Adjusted operating margin | 22.7 | % | 20.2 | % | N/A | 20.4 | % | |
Three Months Ended December 31, 2020 | ||||||||
Operating income (loss) | $ | 463 | $ | 179 | $ | (71) | $ | 571 |
Operating margin | 18.3 | % | 9.4 | % | N/A | 12.9 | % | |
Add (deduct) impact of noteworthy items: | ||||||||
Restructuring, excluding JLT (a) | 1 | 37 | 8 | 46 | ||||
Changes in contingent consideration (b) | 3 | 1 | - | 4 | ||||
JLT integration and restructuring costs (c) | 46 | 20 | 4 | 70 | ||||
JLT acquisition-related costs and other (d) | 11 | 1 | 1 | 13 | ||||
JLT legacy E&O provision (e) | - | 161 | - | 161 | ||||
Disposal of businesses (h) | 1 | (11) | - | (10) | ||||
Other | - | (1) | 1 | - | ||||
Operating income adjustments | 62 | 208 | 14 | 284 | ||||
Adjusted operating income (loss) | $ | 525 | $ | 387 | $ | (57) | $ | 855 |
Total identified intangible amortization expense | $ | 70 | $ | 16 | $ | - | $ | 86 |
Adjusted operating margin | 23.5 | % | 21.4 | % | N/A | 21.3 | % | |
(a) Primarily includes restructuring expenses associated with the Company's global information technology and HR functions and adjustments to restructuring liabilities for future rent under non-cancellable leases. RIS in 2021 also includes costs related to a Marsh operational excellence program to improve efficiencies and client service. Consulting charges in 2020 reflect severance and real estate exit costs related to the Mercer restructuring program completed in 2020. | ||||||||
(b) Primarily includes the change in fair value of contingent consideration related to acquisitions and dispositions as measured each quarter. | ||||||||
(c) Includes costs incurred for staff reductions, lease related exit costs, technology and consulting costs related to the JLT integration. | ||||||||
(d) Includes retention and legal charges related to the acquisition of JLT.
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(e) Reflects recoveries under indemnities for a legacy JLT E&O matter relating to suitability of advice provided to individuals for defined benefit pension transfers in the U.K. For the year-ended 2021, there was a reduction of $69 million in the liability including recoveries, following an increase of $161 million in the recorded liability related to this matter in 2020.
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(f) Settlement charges and legal costs related to strategic recruiting.
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(g) Reflects a gain from the fair value re-measurement of the Company's previously held equity method investment in Marsh India upon the Company increasing its ownership interest from 49% to 92%. The gain is reflected in revenue and excluded from underlying revenue calculations and adjusted operating margin.
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(h) Consulting in 2020 includes a contingent gain adjustment, included in revenue from Mercer's U.S. large market health and defined benefit administration business sold in 2019. This amount is removed from GAAP revenue in the calculation of adjusted operating margin.
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Risk & Insurance Services | Consulting |
Corporate/ Eliminations |
Total | |||||
Twelve Months Ended December 31, 2021 | ||||||||
Operating income (loss) | $ | 3,080 | $ | 1,504 | $ | (272) | $ | 4,312 |
Operating margin | 25.5 | % | 19.3 | % | N/A | 21.8 | % | |
Add (deduct) impact of noteworthy items: | ||||||||
Restructuring, excluding JLT (a) | 31 | 12 | 27 | 70 | ||||
Changes in contingent consideration (b) | 63 | (3) | (3) | 57 | ||||
JLT integration and restructuring costs (c) | 53 | 36 | 4 | 93 | ||||
JLT acquisition-related costs and other (d) | 77 | 3 | 1 | 81 | ||||
JLT legacy E&O provision (e) | - | (69) | - | (69) | ||||
Legal claims (f) | 60 | - | 2 | 62 | ||||
Gain on consolidation of business (g) | (267) | - | - | (267) | ||||
Disposal of businesses (h) | (52) | 3 | - | (49) | ||||
Operating income adjustments | (35) | (18) | 31 | (22) | ||||
Adjusted operating income (loss) | $ | 3,045 | $ | 1,486 | $ | (241) | $ | 4,290 |
Total identified intangible amortization expense | $ | 309 | $ | 56 | $ | - | $ | 365 |
Adjusted operating margin | 28.5 | % | 19.8 | % | N/A | 23.9 | % | |
Twelve Months Ended December 31, 2020 | ||||||||
Operating income (loss) | $ | 2,346 | $ | 994 | $ | (274) | $ | 3,066 |
Operating margin | 22.7 | % | 14.3 | % | N/A | 17.8 | % | |
Add (deduct) impact of noteworthy items: | ||||||||
Restructuring, excluding JLT (a) | 3 | 54 | 32 | 89 | ||||
Changes in contingent consideration (b) | 25 | (1) | 2 | 26 | ||||
JLT integration and restructuring costs (c) | 171 | 51 | 29 | 251 | ||||
JLT acquisition-related costs and other (d) | 50 | 3 | 1 | 54 | ||||
JLT legacy E&O provision (e) | - | 161 | - | 161 | ||||
Disposal of businesses (h) | 7 | (15) | - | (8) | ||||
Other | 5 | - | - | 5 | ||||
Operating income adjustments | 261 | 253 | 64 | 578 | ||||
Adjusted operating income (loss) | $ | 2,607 | $ | 1,247 | $ | (210) | $ | 3,644 |
Total identified intangible amortization expense | $ | 292 | $ | 59 | $ | - | $ | 351 |
Adjusted operating margin | 28.0 | % | 18.8 | % | N/A | 23.2 | % | |
(a) Primarily includes restructuring expenses associated with the Company's global information technology and HR functions and adjustments to restructuring liabilities for future rent under non-cancellable leases. RIS in 2021 also includes costs related to a Marsh operational excellence program to improve efficiencies and client service. Consulting charges in 2020 reflect severance and real estate exit costs related to the Mercer restructuring program completed in 2020. | ||||||||
(b) Primarily includes the change in fair value of contingent consideration related to acquisitions and dispositions as measured each quarter. | ||||||||
(c) Includes costs incurred for staff reductions, lease related exit costs, technology and consulting costs related to the JLT integration. | ||||||||
(d) Includes retention and legal charges related to the acquisition of JLT.
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(e) For the year-ended 2021, there was a reduction of $69 million in the liability including recoveries under indemnities for a legacy JLT E&O matter relating to suitability of advice provided to individuals for defined benefit pension transfers in the U.K. The Company increased the recorded liability by $161 million related to this matter in 2020.
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(f) Settlement charges and legal costs related to strategic recruiting.
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(g) Reflects a gain from the fair value re-measurement of the Company's previously held equity method investment in Marsh India upon the Company increasing its ownership interest from 49% to 92%. The gain is reflected in revenue and excluded from underlying revenue calculations and adjusted operating margin.
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(h) Primarily reflects a gain on the sale of the U.K. commercial networks business that provided broking and back-office solutions for small independent brokers during the second quarter of 2021. 2020 reflects a net loss on disposal of specialty businesses sold in the U.S., U.K. and Canada. Consulting in 2020 includes a contingent gain adjustment from Mercer's U.S. large market health and defined benefit administration business sold in 2019. These amounts are reflected as an increase or decrease of other revenue, which is reflected as part of revenue in the consolidated statements of income. These items are removed from GAAP revenue in the calculation of adjusted operating margin.
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Adjusted income, net of tax is calculated as the Company's GAAP income from continuing operations, adjusted to reflect the after tax impact of the operating income adjustments in the preceding tables and the additional items listed below. Adjusted EPS is calculated by dividing the Company's adjusted income, net of tax, by average number of shares outstanding-diluted for the relevant period. The following tables reconcile adjusted income, net of tax to GAAP income from continuing operations and adjusted EPS to GAAP EPS for the three and twelve month periods ended December 31, 2021 and 2020.
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Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||
(In millions, except per share data) | Amount | Adjusted EPS | Amount | Adjusted EPS | ||||
Net income before non-controlling interests, as reported | $ | 807 | $ | 379 | ||||
Less: Non-controlling interest, net of tax | 4 | 5 | ||||||
Subtotal | $ | 803 | $ | 1.57 | $ | 374 | $ | 0.73 |
Operating income adjustments | $ | (81) | $ | 284 | ||||
Investments adjustment (a) | (4) | (14) | ||||||
Pension settlement charges (b) | 3 | 3 | ||||||
Income tax effect of adjustments (c) | (33) | (35) | ||||||
Impact of U.K. tax rate change (d) | 5 | - | ||||||
(110) | (0.21) | 238 | 0.46 | |||||
Adjusted income, net of tax | $ | 693 | $ | 1.36 | $ | 612 | $ | 1.19 |
Twelve Months Ended December 31, 2021 | Twelve Months Ended December 31, 2020 | |||||||
(In millions, except per share data) | Amount | Adjusted EPS | Amount | Adjusted EPS | ||||
Net income before non-controlling interests, as reported | $ | 3,174 | $ | 2,046 | ||||
Less: Non-controlling interest, net of tax | 31 | 30 | ||||||
Subtotal | $ | 3,143 | $ | 6.13 | $ | 2,016 | $ | 3.94 |
Operating income adjustments | $ | (22) | $ | 578 | ||||
Investments adjustment (a) | (6) | 28 | ||||||
Pension settlement charges (b) | 5 | 3 | ||||||
Income tax effect of adjustments (c) | (64) | (85) | ||||||
Impact of U.K. tax rate change (d) | 110 | - | ||||||
23 | 0.04 | 524 | 1.03 | |||||
Adjusted income, net of tax | $ | 3,166 | $ | 6.17 | $ | 2,540 | $ | 4.97 |
(a) Represents mark-to-market (gains) losses primarily related to the Company's investment in Alexander Forbes ("AF").
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(b) Charges resulting from lump sum pension settlements elected by participants. | ||||||||
(c) For items with an income tax impact, the tax effect was calculated using an effective tax rate based on the tax jurisdiction for each item. | ||||||||
(d) Reflects the re-measurement of the Company's U.K. deferred tax assets and liabilities upon enactment of legislation that increased the corporate income tax rate applicable to U.K. based entities from 19% to 25%, effective April 1, 2023.
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Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Consolidated | ||||||||
Compensation and benefits | $ | 2,905 | $ | 2,650 | $ | 11,425 | $ | 10,129 |
Other operating expenses | 1,246 | 1,195 | 4,083 | 4,029 | ||||
Total expenses | $ | 4,151 | $ | 3,845 | $ | 15,508 | $ | 14,158 |
Depreciation and amortization expense | $ | 91 | $ | 108 | $ | 382 | $ | 390 |
Identified intangible amortization expense | 87 | 86 | 365 | 351 | ||||
Total | $ | 178 | $ | 194 | $ | 747 | $ | 741 |
Stock option expense | $ | 3 | $ | 3 | $ | 32 | $ | 28 |
Risk and Insurance Services | ||||||||
Compensation and benefits | $ | 1,630 | $ | 1,456 | $ | 6,506 | $ | 5,690 |
Other operating expenses | 752 | 613 | 2,499 | 2,301 | ||||
Total expenses | $ | 2,382 | $ | 2,069 | $ | 9,005 | $ | 7,991 |
Depreciation and amortization expense | $ | 44 | $ | 62 | $ | 196 | $ | 208 |
Identified intangible amortization expense | 73 | 70 | 309 | 292 | ||||
Total | $ | 117 | $ | 132 | $ | 505 | $ | 500 |
Consulting | ||||||||
Compensation and benefits | $ | 1,148 | $ | 1,084 | $ | 4,435 | $ | 3,995 |
Other operating expenses | 556 | 639 | 1,850 | 1,987 | ||||
Total expenses | $ | 1,704 | $ | 1,723 | $ | 6,285 | $ | 5,982 |
Depreciation and amortization expense | $ | 28 | $ | 29 | $ | 115 | $ | 115 |
Identified intangible amortization expense | 14 | 16 | 56 | 59 | ||||
Total | $ | 42 | $ | 45 | $ | 171 | $ | 174 |
Marsh & McLennan Companies, Inc.
Consolidated Balance Sheets
(Millions) (Unaudited)
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December 31, 2021 | December 31, 2020 | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 1,752 | $ | 2,089 |
Net receivables | 5,586 | 5,326 | ||
Other current assets | 926 | 740 | ||
Total current assets | 8,264 | 8,155 | ||
Goodwill and intangible assets | 19,127 | 18,216 | ||
Fixed assets, net | 847 | 856 | ||
Pension related assets | 2,270 | 1,768 | ||
Right of use assets | 1,868 | 1,894 | ||
Deferred tax assets | 551 | 702 | ||
Other assets | 1,461 | 1,458 | ||
TOTAL ASSETS | $ | 34,388 | $ | 33,049 |
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Short-term debt | $ | 17 | $ | 517 |
Accounts payable and accrued liabilities | 3,165 | 3,050 | ||
Accrued compensation and employee benefits | 2,942 | 2,400 | ||
Current lease liabilities | 332 | 342 | ||
Accrued income taxes | 198 | 247 | ||
Total current liabilities | 6,654 | 6,556 | ||
Fiduciary liabilities | 9,622 | 8,585 | ||
Less - cash and cash equivalents held in a fiduciary capacity | (9,622) | (8,585) | ||
- | - | |||
Long-term debt | 10,933 | 10,796 | ||
Pension, post-retirement and post-employment benefits | 1,632 | 2,662 | ||
Long-term lease liabilities | 1,880 | 1,924 | ||
Liabilities for errors and omissions | 355 | 366 | ||
Other liabilities | 1,712 | 1,485 | ||
Total equity | 11,222 | 9,260 | ||
TOTAL LIABILITIES AND EQUITY | $ | 34,388 | $ | 33,049 |
For the Years Ended | ||||
December 31, | ||||
2021 | 2020 | |||
Operating cash flows: | ||||
Net income before non-controlling interests | $ | 3,174 | $ | 2,046 |
Adjustments to reconcile net income to cash provided by operations: | ||||
Depreciation and amortization | 747 | 741 | ||
Non cash lease expense | 327 | 355 | ||
Gain on consolidation of entity | (267) | - | ||
Share-based compensation expense | 348 | 290 | ||
Net (gain) loss on investments, disposition of assets and other | (130) | 64 | ||
Changes in assets and liabilities: | ||||
Accrued compensation and employee benefits | 527 | 207 | ||
Net receivables | (252) | (75) | ||
Other changes to assets and liabilities | (199) | 429 | ||
Contributions to pension and other benefit plans in excess of current year credit | (372) | (356) | ||
Operating lease liabilities | (349) | (351) | ||
Effect of exchange rate changes | (38) | 32 | ||
Net cash provided by operations | 3,516 | 3,382 | ||
Financing cash flows: | ||||
Purchase of treasury shares | (1,159) | - | ||
Borrowings from term-loan and credit facilities | - | 1,000 | ||
Proceeds from issuance of debt | 743 | 737 | ||
Repayments of debt | (1,016) | (2,515) | ||
Net issuance of common stock from treasury shares | 60 | - | ||
Net distributions from non-controlling interests and deferred/contingent consideration | (82) | (159) | ||
Dividends paid | (1,026) | (943) | ||
Increase in fiduciary liabilities | 1,183 | 955 | ||
Net cash used for financing activities | (1,297) | (925) | ||
Investing cash flows: | ||||
Capital expenditures | (406) | (348) | ||
Net sales of long-term investments and other | 17 | 104 | ||
Dispositions | 84 | 98 | ||
Acquisitions, net of cash and cash held in a fiduciary capacity acquired
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(859) | (647) | ||
Net cash used for investing activities | (1,164) | (793) | ||
Effect of exchange rate changes on cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity | (355) | 511 | ||
Increase in cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity | 700 | 2,175 | ||
Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at beginning of period | 10,674 | 8,499 | ||
Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at end of period | $ | 11,374 | $ | 10,674 |
Reconciliation of cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity to the Consolidated Balance Sheets | ||||
For the Years Ended December 31, | 2021 | 2020 | ||
(In millions of dollars) | ||||
Cash and cash equivalents | $ | 1,752 | $ | 2,089 |
Cash and cash equivalents held in a fiduciary capacity | 9,622 | 8,585 | ||
Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity | $ | 11,374 | $ | 10,674 |
(a) The Company revised the Statements of Cash Flows presentation to include cash and cash equivalents held in a fiduciary capacity as a component of total cash, presented as cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity. The Company revised the 2020 presentation for comparable purposes.
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