☒ | Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 36-2151613 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading s ymbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $1.00 per share | AJG | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Page No. | |||||||||
Part I. | |||||||||
Item 1. | |||||||||
5 | |||||||||
6 | |||||||||
7 | |||||||||
8 | |||||||||
Item 2. | |||||||||
Item 3. | 1 | ||||||||
Item 4. | |||||||||
Part II. | |||||||||
Item 1. | |||||||||
Item 1A. | |||||||||
Item 2. | |||||||||
Item 6. | |||||||||
Item 1. | Financial Statements (Unaudited) |
Three-month period endedJune 30, | Six-month period endedJune 30, | Three-month period endedSeptember 30, | Nine-month period endedSeptember 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Commissions | $ | 777.7 | $ | 688.0 | $ | 1,718.1 | $ | 1,527.4 | $ | 809.9 | $ | 707.6 | $ | 2,528.0 | $ | 2,235.0 | ||||||||||||||||
Fees | 464.7 | 422.2 | 929.4 | 870.3 | 490.1 | 452.7 | 1,419.5 | 1,323.0 | ||||||||||||||||||||||||
Supplemental revenues | 46.9 | 48.1 | 103.6 | 100.1 | 49.8 | 43.9 | 153.4 | 144.0 | ||||||||||||||||||||||||
Contingent revenues | 29.5 | 21.8 | 77.5 | 56.7 | 30.4 | 25.7 | 107.9 | 82.4 | ||||||||||||||||||||||||
Investment income | 19.6 | 15.8 | 37.9 | 29.2 | 24.0 | 18.0 | 61.9 | 47.2 | ||||||||||||||||||||||||
Net gains on divestitures | 1.9 | 6.1 | 59.0 | 9.0 | 3.3 | 0.6 | 62.3 | 9.6 | ||||||||||||||||||||||||
Revenues from clean coal activities | 284.4 | 422.4 | 656.7 | 834.6 | 386.0 | 492.4 | 1,042.7 | 1,327.0 | ||||||||||||||||||||||||
Other net gains | 0.1 | 0.6 | 0.1 | 0.6 | ||||||||||||||||||||||||||||
Other net (losses) gains | (3.0 | ) | 0.3 | (2.9 | ) | 0.9 | ||||||||||||||||||||||||||
Revenues before reimbursements | 1,624.8 | 1,625.0 | 3,582.3 | 3,427.9 | 1,790.5 | 1,741.2 | 5,372.8 | 5,169.1 | ||||||||||||||||||||||||
Reimbursements | 33.0 | 35.4 | 66.1 | 70.2 | 34.7 | 37.3 | 100.8 | 107.5 | ||||||||||||||||||||||||
Total revenues | 1,657.8 | 1,660.4 | 3,648.4 | 3,498.1 | 1,825.2 | 1,778.5 | 5,473.6 | 5,276.6 | ||||||||||||||||||||||||
Compensation | 806.3 | 724.7 | 1,643.4 | 1,500.5 | 838.7 | 765.7 | 2,482.1 | 2,266.2 | ||||||||||||||||||||||||
Operating | 257.7 | 222.8 | 520.2 | 438.9 | 268.0 | 227.7 | 788.2 | 666.6 | ||||||||||||||||||||||||
Reimbursements | 33.0 | 35.4 | 66.1 | 70.2 | 34.7 | 37.3 | 100.8 | 107.5 | ||||||||||||||||||||||||
Cost of revenues from clean coal activities | 292.0 | 441.8 | 674.5 | 873.0 | 397.4 | 508.8 | 1,071.9 | 1,381.8 | ||||||||||||||||||||||||
Interest | 44.9 | 33.9 | 85.1 | 65.2 | 46.6 | 36.7 | 131.7 | 101.9 | ||||||||||||||||||||||||
Depreciation | 35.3 | 30.8 | 69.3 | 61.4 | 35.1 | 33.4 | 104.4 | 94.8 | ||||||||||||||||||||||||
Amortization | 79.7 | 73.4 | 156.2 | 141.6 | 84.2 | 72.8 | 240.4 | 214.4 | ||||||||||||||||||||||||
Change in estimated acquisition earnout payables | 3.4 | (6.0 | ) | 6.3 | 1.4 | 5.7 | 5.8 | 12.0 | 7.2 | |||||||||||||||||||||||
Total expenses | 1,552.3 | 1,556.8 | 3,221.1 | 3,152.2 | 1,710.4 | 1,688.2 | 4,931.5 | 4,840.4 | ||||||||||||||||||||||||
Earnings before income taxes | 105.5 | 103.6 | 427.3 | 345.9 | 114.8 | 90.3 | 542.1 | 436.2 | ||||||||||||||||||||||||
Benefit for income taxes | (15.9 | ) | (20.1 | ) | (45.8 | ) | (63.8 | ) | (22.3 | ) | (48.1 | ) | (68.1 | ) | (111.9 | ) | ||||||||||||||||
Net earnings | 121.4 | 123.7 | 473.1 | 409.7 | 137.1 | 138.4 | 610.2 | 548.1 | ||||||||||||||||||||||||
Net earnings attributable to noncontrolling interests | 11.3 | 8.8 | 28.9 | 21.1 | 11.0 | 10.8 | 39.9 | 31.9 | ||||||||||||||||||||||||
Net earnings attributable to controlling interests | $ | 110.1 | $ | 114.9 | $ | 444.2 | $ | 388.6 | $ | 126.1 | $ | 127.6 | $ | 570.3 | $ | 516.2 | ||||||||||||||||
Basic net earnings per share | $ | 0.59 | $ | 0.63 | $ | 2.40 | $ | 2.14 | $ | 0.68 | $ | 0.70 | $ | 3.07 | $ | 2.83 | ||||||||||||||||
Diluted net earnings per share | 0.58 | 0.62 | 2.35 | 2.10 | 0.66 | 0.68 | 3.01 | 2.78 | ||||||||||||||||||||||||
Dividends declared per common share | 0.43 | 0.41 | 0.86 | 0.82 | 0.43 | 0.41 | 1.29 | 1.23 |
Three-month period endedJune 30, | Six-month period endedJune 30, | Three-month period endedSeptember 30, | Nine-month period endedSeptember 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Net earnings | $ | 121.4 | $ | 123.7 | $ | 473.1 | $ | 409.7 | $ | 137.1 | $ | 138.4 | $ | 610.2 | $ | 548.1 | ||||||||||||||||
Change in pension liability, net of taxes | 0.8 | (5.5 | ) | 2.4 | 1.5 | 1.0 | 0.7 | 3.4 | 2.2 | |||||||||||||||||||||||
Foreign currency translation, net of taxes in 2019 | (60.7 | ) | (150.7 | ) | 13.8 | (88.4 | ) | (98.7 | ) | (25.2 | ) | (84.9 | ) | (113.6 | ) | |||||||||||||||||
Change in fair value of derivative investments, net of taxes | (21.1 | ) | 4.3 | (32.9 | ) | (2.5 | ) | (24.9 | ) | 2.5 | (57.8 | ) | — | |||||||||||||||||||
Comprehensive earnings (loss) | 40.4 | (28.2 | ) | 456.4 | 320.3 | |||||||||||||||||||||||||||
Comprehensive earnings | 14.5 | 116.4 | 470.9 | 436.7 | ||||||||||||||||||||||||||||
Comprehensive earnings attributable to noncontrolling interests | 11.1 | 3.3 | 29.3 | 17.8 | 7.9 | 11.1 | 37.2 | 28.9 | ||||||||||||||||||||||||
Comprehensive earnings (loss) attributable to controlling interests | $ | 29.3 | $ | (31.5 | ) | $ | 427.1 | $ | 302.5 | |||||||||||||||||||||||
Comprehensive earnings attributable to controlling interests | $ | 6.6 | $ | 105.3 | $ | 433.7 | $ | 407.8 | ||||||||||||||||||||||||
June 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||
Cash and cash equivalents | $ | 512.3 | $ | 607.2 | $ | 578.9 | $ | 607.2 | ||||||||
Restricted cash | 2,034.3 | 1,629.6 | 2,028.4 | 1,629.6 | ||||||||||||
Premiums and fees receivable | 6,007.6 | 4,857.5 | 5,684.7 | 4,857.5 | ||||||||||||
Other current assets | 993.2 | 1,024.4 | 1,036.6 | 1,024.4 | ||||||||||||
Total current assets | 9,547.4 | 8,118.7 | 9,328.6 | 8,118.7 | ||||||||||||
Fixed assets - net | 458.0 | 436.9 | 458.8 | 436.9 | ||||||||||||
Deferred income taxes | 905.7 | 806.2 | 952.8 | 806.2 | ||||||||||||
Other noncurrent assets | 670.1 | 573.6 | 660.8 | 573.6 | ||||||||||||
Right-of-use assets | 368.4 | — | 384.5 | — | ||||||||||||
Goodwill | 5,241.9 | 4,625.6 | 5,314.8 | 4,625.6 | ||||||||||||
Amortizable intangible assets - net | 2,008.8 | 1,773.0 | 2,073.5 | 1,773.0 | ||||||||||||
Total assets | $ | 19,200.3 | $ | 16,334.0 | $ | 19,173.8 | $ | 16,334.0 | ||||||||
Premiums payable to underwriting enterprises | $ | 6,873.8 | $ | 5,740.2 | $ | 6,573.9 | $ | 5,740.2 | ||||||||
Accrued compensation and other current liabilities | 1,067.4 | 1,055.1 | 1,255.7 | 1,055.1 | ||||||||||||
Deferred revenue - current | 429.0 | 379.3 | 421.2 | 379.3 | ||||||||||||
Premium financing debt | 137.3 | 154.0 | 170.1 | 154.0 | ||||||||||||
Corporate related borrowings - current | 425.0 | 365.0 | 490.0 | 365.0 | ||||||||||||
Total current liabilities | 8,932.5 | 7,693.6 | 8,910.9 | 7,693.6 | ||||||||||||
Corporate related borrowings - noncurrent | 3,815.6 | 3,091.4 | 3,815.8 | 3,091.4 | ||||||||||||
Deferred revenue - noncurrent | 75.3 | 78.4 | 72.7 | 78.4 | ||||||||||||
Lease liabilities - noncurrent | 327.4 | — | 335.3 | — | ||||||||||||
Other noncurrent liabilities | 1,101.7 | 900.9 | 1,127.1 | 900.9 | ||||||||||||
Total liabilities | 14,252.5 | 11,764.3 | 14,261.8 | 11,764.3 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
Common stock - issued and outstanding 186.1 shares in 2019 and 184.0 shares in 2018 | 186.1 | 184.0 | ||||||||||||||
Common stock - issued and outstanding 186.5 shares in 2019 and 184.0 shares in 2018 | 186.5 | 184.0 | ||||||||||||||
Capital in excess of par value | 3,656.5 | 3,541.9 | 3,697.7 | 3,541.9 | ||||||||||||
Retained earnings | 1,839.3 | 1,558.6 | 1,884.2 | 1,558.6 | ||||||||||||
Accumulated other comprehensive loss | (802.5 | ) | (785.6 | ) | (925.1 | ) | (785.6 | ) | ||||||||
Stockholders’ equity attributable to controlling interests | 4,879.4 | 4,498.9 | 4,843.3 | 4,498.9 | ||||||||||||
Stockholders’ equity attributable to noncontrolling interests | 68.4 | 70.8 | 68.7 | 70.8 | ||||||||||||
Total stockholders’ equity | 4,947.8 | 4,569.7 | 4,912.0 | 4,569.7 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 19,200.3 | $ | 16,334.0 | $ | 19,173.8 | $ | 16,334.0 | ||||||||
Six-month period endedJune 30, | Nine-month period endedSeptember 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net earnings | $ | 473.1 | $ | 409.7 | $ | 610.2 | $ | 548.1 | ||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||||
Net gain on investments and other | (58.7 | ) | (7.6 | ) | (59.0 | ) | (8.2 | ) | ||||||||
Depreciation and amortization | 225.5 | 203.0 | 344.8 | 309.2 | ||||||||||||
Change in estimated acquisition earnout payables | 6.3 | 1.4 | 12.0 | 7.2 | ||||||||||||
Amortization of deferred compensation and restricted stock | 22.7 | 21.9 | 34.8 | 31.7 | ||||||||||||
Stock-based and other noncash compensation expense | 7.1 | 6.4 | 10.5 | 10.1 | ||||||||||||
Payments on acquisition earnouts in excess of original estimates | (9.8 | ) | (20.0 | ) | (14.7 | ) | (62.8 | ) | ||||||||
Effect of changes in foreign exchange rates | 4.1 | (1.4 | ) | 2.8 | (2.0 | ) | ||||||||||
Net change in premiums and fees receivable | (1,109.0 | ) | (1,097.3 | ) | (832.1 | ) | (782.3 | ) | ||||||||
Net change in deferred revenue | 27.0 | 32.4 | 17.1 | 33.0 | ||||||||||||
Net change in premiums payable to underwriting enterprises | 1,079.2 | 1,106.9 | 843.3 | 729.1 | ||||||||||||
Net change in other current assets | 50.4 | 1.0 | (6.8 | ) | (76.8 | ) | ||||||||||
Net change in accrued compensation and other current liabilities | (167.8 | ) | (135.7 | ) | (50.9 | ) | (56.1 | ) | ||||||||
Net change in income taxes payable | 5.6 | 4.7 | 5.2 | 5.7 | ||||||||||||
Net change in deferred income taxes | (93.6 | ) | (146.4 | ) | (138.0 | ) | (168.4 | ) | ||||||||
Net change in other noncurrent assets and liabilities | (42.5 | ) | (65.7 | ) | (10.1 | ) | (12.9 | ) | ||||||||
Net cash provided by operating activities | 419.6 | 313.3 | 769.1 | 504.6 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Capital expenditures | (75.3 | ) | (62.7 | ) | (107.7 | ) | (90.8 | ) | ||||||||
Cash paid for acquisitions, net of cash and restricted cash acquired | (733.9 | ) | (395.4 | ) | (951.1 | ) | (575.5 | ) | ||||||||
Net proceeds from sales of operations/books of business | 77.1 | 12.1 | 79.4 | 12.6 | ||||||||||||
Net funding of investment transactions | (0.7 | ) | 0.3 | (1.0 | ) | (0.1 | ) | |||||||||
Net cash used by investing activities | (732.8 | ) | (445.7 | ) | (980.4 | ) | (653.8 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Payments on acquisition earnouts | (14.0 | ) | (25.1 | ) | (37.4 | ) | (56.6 | ) | ||||||||
Proceeds from issuance of common stock | 65.1 | 47.7 | 83.1 | 69.9 | ||||||||||||
Repurchases of common stock | — | (11.3 | ) | — | (11.3 | ) | ||||||||||
Payments to noncontrolling interests | (30.6 | ) | (22.2 | ) | (40.1 | ) | (30.9 | ) | ||||||||
Dividends paid | (159.7 | ) | (150.9 | ) | (239.8 | ) | (226.2 | ) | ||||||||
Net borrowings on premium financing debt facility | (15.4 | ) | (34.5 | ) | 23.2 | 19.0 | ||||||||||
Borrowings on line of credit facility | 2,000.0 | 1,805.0 | 2,735.0 | 2,295.0 | ||||||||||||
Repayments on line of credit facility | (1,940.0 | ) | (1,860.0 | ) | (2,610.0 | ) | (2,355.0 | ) | ||||||||
Net borrowings of corporate related long-term debt | 725.0 | 450.0 | 725.0 | 450.0 | ||||||||||||
Debt acquisition costs | (3.9 | ) | — | (3.9 | ) | — | ||||||||||
Settlements on terminated interest rate swaps | (6.4 | ) | 2.9 | (6.4 | ) | 2.9 | ||||||||||
Net cash provided by financing activities | 620.1 | 201.6 | 628.7 | 156.8 | ||||||||||||
Effect of changes in foreign exchange rates on cash and cash equivalents and restricted cash | 2.9 | (29.5 | ) | (46.9 | ) | (52.1 | ) | |||||||||
Net increase in cash, cash equivalents and restricted cash | 309.8 | 39.7 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 370.5 | (44.5 | ) | |||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 2,236.8 | 2,305.0 | 2,236.8 | 2,305.0 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 2,546.6 | $ | 2,344.7 | $ | 2,607.3 | $ | 2,260.5 | ||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital in | Other | Capital in | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Excess of | Retained | Comprehensive | Noncontrolling | Common Stock | Excess of | Retained | Comprehensive | Noncontrolling | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Par Value | Earnings | Earnings (Loss) | Interests | Total | Shares | Amount | Par Value | Earnings | Loss | Interests | Total | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 184.0 | $ | 184.0 | $ | 3,541.9 | $ | 1,558.6 | $ | (785.6 | ) | $ | 70.8 | $ | 4,569.7 | 184.0 | $ | 184.0 | $ | 3,541.9 | $ | 1,558.6 | $ | (785.6 | ) | $ | 70.8 | $ | 4,569.7 | |||||||||||||||||||||||||||||
Cumulative effects of adoptions of lease and hedging accounting standards | — | — | — | (2.2 | ) | (0.2 | ) | — | (2.4 | ) | — | — | — | (2.2 | ) | (0.2 | ) | — | (2.4 | ) | |||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 334.1 | — | 17.6 | 351.7 | — | — | — | 334.1 | — | 17.6 | 351.7 | |||||||||||||||||||||||||||||||||||||||||||
Net purchase of subsidiary shares from noncontrolling interests | — | — | (0.2 | ) | — | — | (0.1 | ) | (0.3 | ) | — | — | (0.2 | ) | — | — | (0.1 | ) | (0.3 | ) | |||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | (11.0 | ) | (11.0 | ) | — | — | — | — | — | (11.0 | ) | (11.0 | ) | |||||||||||||||||||||||||||||||||||||||
Net change in pension asset/liability, net of taxes of $0.4 million | — | — | — | — | 1.6 | — | 1.6 | — | — | — | — | 1.6 | — | 1.6 | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of taxes of $2.5 million | — | — | — | — | 74.5 | 0.6 | 75.1 | — | — | — | — | 74.5 | 0.6 | 75.1 | |||||||||||||||||||||||||||||||||||||||||||
Change in fair value of derivative instruments, net of taxes of $(4.4) million | — | — | — | — | (11.8 | ) | — | (11.8 | ) | — | — | — | — | (11.8 | ) | — | (11.8 | ) | |||||||||||||||||||||||||||||||||||||||
Compensation expense related to stock option plan grants | — | — | 3.6 | — | — | — | 3.6 | — | — | 3.6 | — | — | — | 3.6 | |||||||||||||||||||||||||||||||||||||||||||
Common stock issued in: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Two purchase transactions | 0.5 | 0.5 | 36.5 | — | — | — | 37.0 | 0.5 | 0.5 | 36.5 | — | — | — | 37.0 | |||||||||||||||||||||||||||||||||||||||||||
Stock option plans | 0.7 | 0.7 | 27.4 | — | — | — | 28.1 | 0.7 | 0.7 | 27.4 | — | — | — | 28.1 | |||||||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan | 0.1 | 0.1 | 4.6 | — | — | — | 4.7 | 0.1 | 0.1 | 4.6 | — | — | — | 4.7 | |||||||||||||||||||||||||||||||||||||||||||
Deferred compensation and restricted stock | — | — | (7.5 | ) | — | — | — | (7.5 | ) | — | — | (7.5 | ) | — | — | — | (7.5 | ) | |||||||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock | — | — | — | (80.3 | ) | — | — | (80.3 | ) | — | — | — | (80.3 | ) | — | — | (80.3 | ) | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | 185.3 | 185.3 | 3,606.3 | 1,810.2 | (721.5 | ) | 77.9 | 4,958.2 | 185.3 | 185.3 | 3,606.3 | 1,810.2 | (721.5 | ) | 77.9 | 4,958.2 | |||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 110.1 | — | 11.3 | 121.4 | — | — | — | 110.1 | — | 11.3 | 121.4 | |||||||||||||||||||||||||||||||||||||||||||
Net purchase of subsidiary shares from noncontrolling interests | — | — | — | — | — | (7.3 | ) | (7.3 | ) | — | — | — | — | — | (7.3 | ) | (7.3 | ) | |||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | (13.3 | ) | (13.3 | ) | — | — | — | — | — | (13.3 | ) | (13.3 | ) | |||||||||||||||||||||||||||||||||||||||
Net change in pension asset/liability, net of taxes of $0.2 million | — | — | — | — | 0.8 | — | 0.8 | — | — | — | — | 0.8 | — | 0.8 | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation, net of taxes of $0.4 million | — | — | — | — | (60.7 | ) | (0.2 | ) | (60.9 | ) | — | — | — | — | (60.7 | ) | (0.2 | ) | (60.9 | ) | |||||||||||||||||||||||||||||||||||||
Change in fair value of derivative instruments, net of taxes of $(7.1) million | — | — | — | — | (21.1 | ) | — | (21.1 | ) | — | — | — | — | (21.1 | ) | — | (21.1 | ) | |||||||||||||||||||||||||||||||||||||||
Compensation expense related to stock option plan grants | — | — | 3.5 | — | — | — | 3.5 | — | — | 3.5 | — | — | — | 3.5 | |||||||||||||||||||||||||||||||||||||||||||
Common stock issued in: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Five purchase transactions | 0.1 | 0.1 | 10.9 | — | — | — | 11.0 | 0.1 | 0.1 | 10.9 | — | — | — | 11.0 | |||||||||||||||||||||||||||||||||||||||||||
Stock option plans | 0.5 | 0.5 | 21.3 | — | — | — | 21.8 | 0.5 | 0.5 | 21.3 | — | — | — | 21.8 | |||||||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan | 0.1 | 0.1 | 10.4 | — | — | — | 10.5 | 0.1 | 0.1 | 10.4 | — | — | — | 10.5 | |||||||||||||||||||||||||||||||||||||||||||
Deferred compensation and restricted stock | 0.1 | 0.1 | 4.1 | — | — | — | 4.2 | 0.1 | 0.1 | 4.1 | — | — | — | 4.2 | |||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock | — | — | — | (81.0 | ) | — | — | (81.0 | ) | — | — | — | (81.0 | ) | — | — | (81.0 | ) | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 186.1 | $ | 186.1 | $ | 3,656.5 | $ | 1,839.3 | $ | (802.5 | ) | $ | 68.4 | $ | 4,947.8 | 186.1 | $ | 186.1 | $ | 3,656.5 | $ | 1,839.3 | $ | (802.5 | ) | $ | 68.4 | $ | 4,947.8 | |||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Capital in | Other | |||||||||||||||||||||||||||
Common Stock | Excess of | Retained | Comprehensive | Noncontrolling | ||||||||||||||||||||||||
Shares | Amount | Par Value | Earnings | Loss | Interests | Total | ||||||||||||||||||||||
Balance at June 30, 2019 | 186.1 | $ | 186.1 | $ | 3,656.5 | $ | 1,839.3 | $ | (802.5 | ) | $ | 68.4 | $ | 4,947.8 | ||||||||||||||
Net earnings | — | — | — | 126.1 | — | 11.0 | 137.1 | |||||||||||||||||||||
Net purchase of subsidiary shares from noncontrolling interests | — | — | — | — | — | 0.9 | 0.9 | |||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | (8.5 | ) | (8.5 | ) | |||||||||||||||||||
Net change in pension asset/liability, net of taxes of $0.2 million | — | — | — | — | 1.0 | — | 1.0 | |||||||||||||||||||||
Foreign currency translation, net of taxes of $(0.2) million | — | — | — | — | (98.7 | ) | (3.1 | ) | (101.8 | ) | ||||||||||||||||||
Change in fair value of derivative instruments, net of taxes of $(8.2) million | — | — | — | — | (24.9 | ) | — | (24.9 | ) | |||||||||||||||||||
Compensation expense related to stock option plan grants | — | — | 3.4 | — | — | — | 3.4 | |||||||||||||||||||||
Common stock issued in: | ||||||||||||||||||||||||||||
Four purchase transactions | 0.1 | 0.1 | 8.9 | — | — | — | 9.0 | |||||||||||||||||||||
Stock option plans | 0.2 | 0.2 | 11.6 | — | — | — | 11.8 | |||||||||||||||||||||
Employee stock purchase plan | 0.1 | 0.1 | 6.1 | — | — | — | 6.2 | |||||||||||||||||||||
Deferred compensation and restricted stock | — | — | 11.2 | — | — | — | 11.2 | |||||||||||||||||||||
Cash dividends declared on common stock | — | — | — | (81.2 | ) | — | — | (81.2 | ) | |||||||||||||||||||
Balance at September 30, 2019 | 186.5 | $ | 186.5 | $ | 3,697.7 | $ | 1,884.2 | $ | (925.1 | ) | $ | 68.7 | $ | 4,912.0 | ||||||||||||||
Accumulated | |||||||||||||||||||||||||||||
Capital in | Other | ||||||||||||||||||||||||||||
Common Stock | Excess of | Retained | Comprehensive | Noncontrolling | |||||||||||||||||||||||||
Shares | Amount | Par Value | Earnings | Earnings (Loss) | Interests | Total | |||||||||||||||||||||||
Balance at December 31, 2017, as previously reported | 181.0 | $ | 181.0 | $ | 3,388.2 | $ | 1,095.9 | $ | (559.9 | ) | $ | 59.7 | $ | 4,164.9 | |||||||||||||||
Adoption of Topic 606 | — | — | — | 125.9 | 4.5 | 4.4 | 134.8 | ||||||||||||||||||||||
Balance at December 31, 2017, as restated | 181.0 | 181.0 | 3,388.2 | 1,221.8 | (555.4 | ) | 64.1 | 4,299.7 | |||||||||||||||||||||
Reclassification of the income tax effects within accumulated other comprehensive loss related to the Tax Act | — | — | — | 6.6 | (6.6 | ) | — | — | |||||||||||||||||||||
Net earnings | — | — | — | 273.7 | — | 12.3 | 286.0 | ||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | (8.7 | ) | (8.7 | ) | ||||||||||||||||||||
Net change in pension asset/liability, net of taxes of ($0.6) million | — | — | — | — | 0.9 | — | 0.9 | ||||||||||||||||||||||
Foreign currency translation | — | — | — | — | 56.2 | 2.2 | 58.4 | ||||||||||||||||||||||
Change in fair value of derivative instruments, net of taxes of ($1.2) million | — | — | — | — | 5.4 | — | 5.4 | ||||||||||||||||||||||
Compensation expense related to stock option plan grants | — | — | 4.8 | — | — | — | 4.8 | ||||||||||||||||||||||
Common stock issued in: | |||||||||||||||||||||||||||||
Three purchase transactions | 0.1 | 0.1 | 6.4 | — | — | — | 6.5 | ||||||||||||||||||||||
Stock option plans | 0.8 | 0.8 | 27.4 | — | — | — | 28.2 | ||||||||||||||||||||||
Employee stock purchase plan | 0.1 | 0.1 | 4.0 | — | — | — | 4.1 | ||||||||||||||||||||||
Deferred compensation and restricted stock | 0.2 | 0.2 | (14.3 | ) | — | — | — | (14.1 | ) | ||||||||||||||||||||
Common stock repurchases | (0.1 | ) | (0.1 | ) | (11.2 | ) | — | — | — | (11.3 | ) | ||||||||||||||||||
Cash dividends declared on common stock | — | — | — | (75.4 | ) | — | — | (75.4 | ) | ||||||||||||||||||||
Balance at March 31, 2018 | 182.1 | 182.1 | 3,405.3 | 1,426.7 | (499.5 | ) | 69.9 | 4,584.5 | |||||||||||||||||||||
Net earnings | — | — | — | 114.9 | — | 8.8 | 123.7 | ||||||||||||||||||||||
Net purchase of subsidiary shares from noncontrolling interests | — | — | (1.6 | ) | — | — | 4.5 | 2.9 | |||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | (8.2 | ) | (8.2 | ) | ||||||||||||||||||||
Net change in pension asset/liability, net of taxes of $3.7 million | — | — | — | — | 0.6 | — | 0.6 | ||||||||||||||||||||||
Foreign currency translation | — | — | — | — | (144.6 | ) | (5.5 | ) | (150.1 | ) | |||||||||||||||||||
Change in fair value of derivative instruments, net of taxes of ($0.2) million | — | — | — | — | (7.9 | ) | — | (7.9 | ) | ||||||||||||||||||||
Compensation expense related to stock option plan grants | — | — | 1.6 | — | — | — | 1.6 | ||||||||||||||||||||||
Common stock issued in: | |||||||||||||||||||||||||||||
Three purchase transactions | 0.2 | 0.2 | 14.0 | — | — | — | 14.2 | ||||||||||||||||||||||
Stock option plans | 0.2 | 0.2 | 6.2 | — | — | — | 6.4 | ||||||||||||||||||||||
Employee stock purchase plan | 0.1 | 0.1 | 8.9 | — | — | — | 9.0 | ||||||||||||||||||||||
Deferred compensation and restricted stock | — | — | 12.0 | — | — | — | 12.0 | ||||||||||||||||||||||
Common stock repurchases | — | — | — | — | — | — | — | ||||||||||||||||||||||
Cash dividends declared on common stock | — | — | — | (75.6 | ) | — | — | (75.6 | ) | ||||||||||||||||||||
Balance at June 30, 2018 | 182.6 | $ | 182.6 | $ | 3,446.4 | $ | 1,466.0 | $ | (651.4 | ) | $ | 69.5 | $ | 4,513.1 | |||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Capital in | Other | |||||||||||||||||||||||||||
Common Stock | Excess of | Retained | Comprehensive | Noncontrolling | ||||||||||||||||||||||||
Shares | Amount | Par Value | Earnings | Loss | Interests | Total | ||||||||||||||||||||||
Balance at December 31, 2017, as previously reported | 181.0 | $ | 181.0 | $ | 3,388.2 | $ | 1,095.9 | $ | (559.9 | ) | $ | 59.7 | $ | 4,164.9 | ||||||||||||||
Adoption of Topic 606 | — | — | — | 125.9 | 4.5 | 4.4 | 134.8 | |||||||||||||||||||||
Balance at December 31, 2017, as restated | 181.0 | 181.0 | 3,388.2 | 1,221.8 | (555.4 | ) | 64.1 | 4,299.7 | ||||||||||||||||||||
Reclassification of the income tax effects within accumulated other comprehensive loss related to the Tax Act | — | — | — | 6.6 | (6.6 | ) | — | — | ||||||||||||||||||||
Net earnings | — | — | — | 273.7 | — | 12.3 | 286.0 | |||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | (8.7 | ) | (8.7 | ) | |||||||||||||||||||
Net change in pension asset/liability, net of taxes of ($0.6) million | — | — | — | — | 0.9 | — | 0.9 | |||||||||||||||||||||
Foreign currency translation | — | — | — | — | 56.2 | 2.2 | 58.4 | |||||||||||||||||||||
Change in fair value of derivative instruments, net of taxes of ($1.2) million | — | — | — | — | 5.4 | — | 5.4 | |||||||||||||||||||||
Compensation expense related to stock option plan grants | — | — | 4.8 | — | — | — | 4.8 | |||||||||||||||||||||
Common stock issued in: | ||||||||||||||||||||||||||||
Three purchase transactions | 0.1 | 0.1 | 6.4 | — | — | — | 6.5 | |||||||||||||||||||||
Stock option plans | 0.8 | 0.8 | 27.4 | — | — | — | 28.2 | |||||||||||||||||||||
Employee stock purchase plan | 0.1 | 0.1 | 4.0 | — | — | — | 4.1 | |||||||||||||||||||||
Deferred compensation and restricted stock | 0.2 | 0.2 | (14.3 | ) | — | — | — | (14.1 | ) | |||||||||||||||||||
Common stock repurchases | (0.1 | ) | (0.1 | ) | (11.2 | ) | — | — | — | (11.3 | ) | |||||||||||||||||
Cash dividends declared on common stock | — | — | — | (75.4 | ) | — | — | (75.4 | ) | |||||||||||||||||||
Balance at March 31, 2018 | 182.1 | 182.1 | 3,405.3 | 1,426.7 | (499.5 | ) | 69.9 | 4,584.5 | ||||||||||||||||||||
Net earnings | — | — | — | 114.9 | — | 8.8 | 123.7 | |||||||||||||||||||||
Net purchase of subsidiary shares from noncontrolling interests | — | — | (1.6 | ) | — | — | 4.5 | 2.9 | ||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | (8.2 | ) | (8.2 | ) | |||||||||||||||||||
Net change in pension asset/liability, net of taxes of $3.7 million | — | — | — | — | 0.6 | — | 0.6 | |||||||||||||||||||||
Foreign currency translation | — | — | — | — | (144.6 | ) | (5.5 | ) | (150.1 | ) | ||||||||||||||||||
Change in fair value of derivative instruments, net of taxes of ($0.2) million | — | — | — | — | (7.9 | ) | — | (7.9 | ) | |||||||||||||||||||
Compensation expense related to stock option plan grants | — | — | 1.6 | — | — | — | 1.6 | |||||||||||||||||||||
Common stock issued in: | ||||||||||||||||||||||||||||
Three purchase transactions | 0.2 | 0.2 | 14.0 | — | — | — | 14.2 | |||||||||||||||||||||
Stock option plans | 0.2 | 0.2 | 6.2 | — | — | — | 6.4 | |||||||||||||||||||||
Employee stock purchase plan | 0.1 | 0.1 | 8.9 | — | — | — | 9.0 | |||||||||||||||||||||
Deferred compensation and restricted stock | — | — | 12.0 | — | — | — | 12.0 | |||||||||||||||||||||
Common stock repurchases | — | — | — | — | — | — | — | |||||||||||||||||||||
Cash dividends declared on common stock | — | — | — | (75.6 | ) | — | — | (75.6 | ) | |||||||||||||||||||
Balance at June 30, 2018 | 182.6 | $ | 182.6 | $ | 3,446.4 | $ | 1,466.0 | $ | (651.4 | ) | $ | 69.5 | $ | 4,513.1 | ||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Capital in | Other | |||||||||||||||||||||||||||
Common Stock | Excess of | Retained | Comprehensive | Noncontrolling | ||||||||||||||||||||||||
Shares | Amount | Par Value | Earnings | Loss | Interests | Total | ||||||||||||||||||||||
Balance at June 30, 2018 | 182.6 | 182.6 | 3,446.4 | 1,466.0 | (651.4 | ) | 69.5 | 4,513.1 | ||||||||||||||||||||
Net earnings | — | — | — | 127.6 | — | 10.8 | 138.4 | |||||||||||||||||||||
Net purchase of subsidiary shares from noncontrolling interests | — | — | (0.7 | ) | — | — | (2.1 | ) | (2.8 | ) | ||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | (10.3 | ) | (10.3 | ) | |||||||||||||||||||
Net change in pension asset/liability, net of taxes of $0.1 million | — | — | — | — | 0.7 | — | 0.7 | |||||||||||||||||||||
Foreign currency translation | — | — | — | — | (25.2 | ) | 0.3 | (24.9 | ) | |||||||||||||||||||
Change in fair value of derivative instruments, net of taxes of $0.7 million | — | — | — | — | 2.5 | — | 2.5 | |||||||||||||||||||||
Compensation expense related to stock option plan grants | — | — | 3.7 | — | — | — | 3.7 | |||||||||||||||||||||
Common stock issued in: | ||||||||||||||||||||||||||||
Three purchase transactions | 0.5 | 0.5 | 37.0 | — | — | — | 37.5 | |||||||||||||||||||||
Stock option plans | 0.4 | 0.4 | 16.5 | — | — | — | 16.9 | |||||||||||||||||||||
Employee stock purchase plan | 0.1 | 0.1 | 5.2 | — | — | — | 5.3 | |||||||||||||||||||||
Deferred compensation and restricted stock | 0.1 | 0.1 | 8.5 | — | — | — | 8.6 | |||||||||||||||||||||
Cash dividends declared on common stock | — | — | — | (76.0 | ) | — | — | (76.0 | ) | |||||||||||||||||||
Balance at September 30, 2018 | 183.7 | $ | 183.7 | $ | 3,516.6 | $ | 1,517.6 | $ | (673.4 | ) | $ | 68.2 | $ | 4,612.7 | ||||||||||||||
1. | Summary of Significant Accounting Policies |
2. | Effect of New Accounting Pronouncements |
3. | Business Combinations |
Name and Effective Date of Acquisition | Common Shares Issued | Common Share Value | Cash Paid | Accrued Liability | Escrow Deposited | Recorded Earnout Payable | Total Recorded Purchase Price | Maximum Potential Earnout Payable | ||||||||||||||||||||||||
(000s) | ||||||||||||||||||||||||||||||||
Inversion Holding Company, LLC (IHC) January 1, 2019 | 452 | $ | 35.9 | $ | 31.2 | $ | — | $ | 4.5 | $ | 20.9 | $ | 92.5 | $ | 35.0 | |||||||||||||||||
Jones Brown Inc. (JBI) January 1, 2019 | — | — | 65.9 | — | 8.7 | — | 74.6 | — | ||||||||||||||||||||||||
Stackhouse Poland Group Limited (SPG) April 5, 2019 | — | — | 326.8 | — | 4.8 | — | 331.6 | — | ||||||||||||||||||||||||
RPA Insurance Services LLC (RPA) May 1, 2019 | — | — | 44.0 | — | 3.9 | 16.9 | 64.8 | 22.0 | ||||||||||||||||||||||||
JLT Aerospace (JLT) June 1, 2019 | — | — | 162.8 | — | — | 63.6 | 226.4 | 75.1 | ||||||||||||||||||||||||
19 other acquisitions completed in 2019 | 71 | 5.3 | 118.9 | 0.2 | 8.4 | 30.8 | 163.6 | 79.7 | ||||||||||||||||||||||||
523 | $ | 41.2 | $ | 749.6 | $ | 0.2 | $ | 30.3 | $ | 132.2 | $ | 953.5 | $ | 211.8 | ||||||||||||||||||
Name and Effective Date of Acquisition | Common Shares Issued | Common Share Value | Cash Paid | Accrued Liability | Escrow Deposited | Recorded Earnout Payable | Total Recorded Purchase Price | Maximum Potential Earnout Payable | ||||||||||||||||||||||||
(000s) | ||||||||||||||||||||||||||||||||
Inversion Holding Company, LLC January 2019 | 452 | $ | 35.9 | $ | 31.2 | $ | — | $ | 4.5 | $ | 20.9 | $ | 92.5 | $ | 35.0 | |||||||||||||||||
Jones Brown Inc. (JBI) January 1, 2019 | — | — | 65.9 | — | 8.7 | — | 74.6 | — | ||||||||||||||||||||||||
Stackhouse Poland Group Limited (SPG) April 5, 2019 | — | — | 326.8 | — | 4.8 | — | 331.6 | — | ||||||||||||||||||||||||
RPA Insurance Services LLC (RPA) May 1, 2019 | — | — | 44.0 | — | 3.9 | 16.9 | 64.8 | 22.0 | ||||||||||||||||||||||||
JLT Aerospace (JLT) June 1, 2019 | — | — | 162.8 | — | — | 63.6 | 226.4 | 75.1 | ||||||||||||||||||||||||
RGA Group (RGA) September 4, 2019 | — | — | 42.8 | 6.0 | 4.7 | 8.0 | 61.5 | 9.3 | ||||||||||||||||||||||||
32 other acquisitions completed in 2019 | 156 | 12.1 | 290.9 | 32.3 | 26.0 | 59.9 | 421.2 | 147.3 | ||||||||||||||||||||||||
608 | $ | 48.0 | $ | 964.4 | $ | 38.3 | $ | 52.6 | $ | 169.3 | $ | 1,272.6 | $ | 288.7 | ||||||||||||||||||
IHC | JBI | SPG | RPA | JLT | RGA | 32 Other Acquisitions | Total | |||||||||||||||||||||||||
Cash | $ | — | $ | 2.7 | $ | 13.6 | $ | — | $ | — | $ | 6.0 | $ | 3.6 | $ | 25.9 | ||||||||||||||||
Other current assets | 3.8 | 22.2 | 35.9 | 10.6 | 6.3 | 5.1 | 60.1 | 144.0 | ||||||||||||||||||||||||
Fixed assets | 0.3 | 1.1 | 3.1 | 0.2 | — | 0.2 | 2.3 | 7.2 | ||||||||||||||||||||||||
Noncurrent assets | 0.5 | 2.9 | 9.9 | 0.7 | 2.9 | 5.7 | 12.8 | 35.4 | ||||||||||||||||||||||||
Goodwill | 41.8 | 49.5 | 302.6 | 34.5 | 106.2 | 36.7 | 184.8 | 756.1 | ||||||||||||||||||||||||
Expiration lists | 50.6 | 25.4 | 56.8 | 32.6 | 118.8 | 19.5 | 223.8 | 527.5 | ||||||||||||||||||||||||
Non-compete agreements | 1.1 | 0.1 | 11.4 | 0.1 | 2.4 | 2.7 | 3.3 | 21.1 | ||||||||||||||||||||||||
Trade names | — | 0.1 | — | — | 2.3 | — | 0.1 | 2.5 | ||||||||||||||||||||||||
Total assets acquired | 98.1 | 104.0 | 433.3 | 78.7 | 238.9 | 75.9 | 490.8 | 1,519.7 | ||||||||||||||||||||||||
Current liabilities | 5.1 | 20.4 | 78.5 | 13.2 | 12.5 | 10.6 | 50.9 | 191.2 | ||||||||||||||||||||||||
Noncurrent liabilities | 0.5 | 9.0 | 23.2 | 0.7 | — | 3.8 | 18.7 | 55.9 | ||||||||||||||||||||||||
Total liabilities assumed | 5.6 | 29.4 | 101.7 | 13.9 | 12.5 | 14.4 | 69.6 | 247.1 | ||||||||||||||||||||||||
Total net assets acquired | $ | 92.5 | $ | 74.6 | $ | 331.6 | $ | 64.8 | $ | $ | 61.5 | $ | 421.2 | $ | 1,272.6 | |||||||||||||||||
IHC | JBI | SPG | RPA | JLT | 19 Other Acquisitions | Total | ||||||||||||||||||||||
Cash | $ | — | $ | 2.7 | $ | 13.6 | $ | — | $ | — | $ | 2.0 | $ | 18.3 | ||||||||||||||
Other current assets | 3.8 | 22.2 | 35.9 | 10.6 | 6.3 | 16.4 | 95.2 | |||||||||||||||||||||
Fixed assets | 0.3 | 1.1 | 3.1 | 0.2 | — | 0.5 | 5.2 | |||||||||||||||||||||
Noncurrent assets | 0.5 | 2.9 | 9.9 | 0.7 | 2.9 | 4.5 | 21.4 | |||||||||||||||||||||
Goodwill | 41.8 | 51.2 | 302.6 | 34.5 | 106.2 | 68.0 | 604.3 | |||||||||||||||||||||
Expiration lists | 50.6 | 22.7 | 56.8 | 32.6 | 118.8 | 93.1 | 374.6 | |||||||||||||||||||||
Non-compete agreements | 1.1 | 0.8 | 11.4 | 0.1 | 2.4 | 0.7 | 16.5 | |||||||||||||||||||||
Trade names | — | — | — | — | 2.3 | — | 2.3 | |||||||||||||||||||||
Total assets acquired | 98.1 | 103.6 | 433.3 | 78.7 | 238.9 | 185.2 | 1,137.8 | |||||||||||||||||||||
Current liabilities | 5.1 | 20.4 | 78.5 | 13.2 | 12.5 | 14.1 | 143.8 | |||||||||||||||||||||
Noncurrent liabilities | 0.5 | 8.6 | 23.2 | 0.7 | — | 7.5 | 40.5 | |||||||||||||||||||||
Total liabilities assumed | 5.6 | 29.0 | 101.7 | 13.9 | 12.5 | 21.6 | 184.3 | |||||||||||||||||||||
Total net assets acquired | $ | 92.5 | $ | 74.6 | $ | 331.6 | $ | 64.8 | $ | 226.4 | $ | 163.6 | $ | 953.5 | ||||||||||||||
Three-month period endedSeptember 30, | Nine-month period endedSeptember 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Total revenues | $ | 1,835.2 | $ | 1,851.4 | $ | 5,577.2 | $ | 5,497.9 | ||||||||
Net earnings attributable to controlling interests | 127.2 | 126.8 | 566.7 | 514.5 | ||||||||||||
Basic net earnings per share | 0.68 | 0.69 | 3.05 | 2.81 | ||||||||||||
Diluted net earnings per share | 0.67 | 0.68 | 2.99 | 2.76 |
Three-month period endedJune 30, | Six-month period endedJune 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Total revenues | $ | 1,672.1 | $ | 1,717.3 | $ | 3,696.3 | $ | 3,602.5 | ||||||||
Net earnings attributable to controlling interests | 109.1 | 117.0 | 435.8 | 386.4 | ||||||||||||
Basic net earnings per share | 0.59 | 0.64 | 2.35 | 2.12 | ||||||||||||
Diluted net earnings per share | 0.57 | 0.63 | 2.30 | 2.08 |
4. | Contracts with Customers |
June 30, 2019 | December 31, 2018 | |||||||
Unbilled receivables | $ | 703.9 | $ | 496.2 | ||||
Deferred contract costs | 64.9 | 91.6 | ||||||
Deferred revenue | 504.3 | 457.7 |
September 30, 2019 | December 31, 2018 | |||||||
Unbilled receivables | $ | 675.5 | $ | 496.2 | ||||
Deferred contract costs | 64.3 | 91.6 | ||||||
Deferred revenue | 493.9 | 457.7 |
Brokerage | Risk Management | Total | ||||||||||
Deferred revenue at December 31, 2018 | $ | 284.7 | $ | 173.0 | $ | 457.7 | ||||||
Incremental deferred revenue | 234.3 | 77.1 | 311.4 | |||||||||
Revenue recognized during the six-month period ended June 30, 2019 included in deferred revenue at December 31, 2018 | (205.3 | ) | (79.4 | ) | (284.7 | ) | ||||||
Deferred revenue recognized from business acquisitions | 19.9 | — | 19.9 | |||||||||
Deferred revenue at June 30, 2019 | $ | 333.6 | $ | 170.7 | $ | 504.3 | ||||||
Brokerage | Risk Management | Total | ||||||||||
Deferred revenue at December 31, 2018 | $ | 284.7 | $ | 173.0 | $ | 457.7 | ||||||
Incremental deferred revenue | 239.2 | 109.3 | 348.5 | |||||||||
Revenue recognized during the nine-month period ended September 30, 2019 included in deferred revenue at December 31, 2018 | (221.0 | ) | (115.6 | ) | (336.6 | ) | ||||||
Deferred revenue recognized from business acquisitions | 24.3 | — | 24.3 | |||||||||
Deferred revenue at September 30, 2019 | $ | 327.2 | $ | 166.7 | $ | 493.9 | ||||||
Brokerage | Risk Management | Total | ||||||||||
2019 (remaining six months) | $ | 240.4 | $ | 68.9 | $ | 309.3 | ||||||
2020 | 64.4 | 44.6 | 109.0 | |||||||||
2021 | 21.9 | 20.9 | 42.8 | |||||||||
2022 | 5.7 | 11.9 | 17.6 | |||||||||
2023 | 0.6 | 6.9 | 7.5 | |||||||||
Thereafter | 0.6 | 17.5 | 18.1 | |||||||||
Total | $ | 333.6 | $ | 170.7 | $ | 504.3 | ||||||
Brokerage | Risk Management | Total | ||||||||||
2019 (remaining three months) | $ | 193.3 | $ | 50.6 | $ | 243.9 | ||||||
2020 | 111.4 | 53.7 | 165.1 | |||||||||
2021 | 17.0 | 24.3 | 41.3 | |||||||||
2022 | 3.8 | 13.6 | 17.4 | |||||||||
2023 | 0.9 | 7.8 | 8.7 | |||||||||
Thereafter | 0.8 | 16.7 | 17.5 | |||||||||
Total | $ | 327.2 | $ | 166.7 | $ | 493.9 | ||||||
5. | Other Financial Data |
June 30, 2019 | December 31, 2018 | |||||||
Premium finance advances and loans | $ | 340.9 | $ | 316.2 | ||||
Accrued supplemental, direct bill and other receivables | 368.5 | 348.2 | ||||||
Refined coal production related receivables | 117.4 | 160.2 | ||||||
Deferred contract costs | 64.9 | 91.6 | ||||||
Prepaid expenses | 101.5 | 108.2 | ||||||
Total other current assets | $ | 993.2 | $ | 1,024.4 | ||||
September 30, 2019 | December 31, 2018 | |||||||
Premium finance advances and loans | $ | 362.3 | $ | 316.2 | ||||
Accrued supplemental, direct bill and other receivables | 383.0 | 348.2 | ||||||
Refined coal production related receivables | 131.8 | 160.2 | ||||||
Deferred contract costs | 64.3 | 91.6 | ||||||
Prepaid expenses | 95.2 | 108.2 | ||||||
Total other current assets | $ | 1,036.6 | $ | 1,024.4 | ||||
6. | Intangible Assets |
Brokerage | Risk Management | Corporate | Total | Brokerage | Risk Management | Corporate | Total | |||||||||||||||||||||||||
At June 30, 2019 | ||||||||||||||||||||||||||||||||
At September 30, 2019 | ||||||||||||||||||||||||||||||||
United States | $ | 2,861.9 | $ | 29.6 | $ | — | $ | 2,891.5 | $ | 2,950.0 | $ | 33.0 | $ | — | $ | 2,983.0 | ||||||||||||||||
United Kingdom | 1,144.6 | 8.8 | — | 1,153.4 | 1,138.6 | 12.3 | — | 1,150.9 | ||||||||||||||||||||||||
Canada | 446.5 | — | — | 446.5 | 445.4 | — | — | 445.4 | ||||||||||||||||||||||||
Australia | 415.7 | 0.3 | — | 416.0 | 404.2 | 10.1 | — | 414.3 | ||||||||||||||||||||||||
New Zealand | 207.9 | 10.1 | — | 218.0 | 196.5 | 9.5 | — | 206.0 | ||||||||||||||||||||||||
Other foreign | 113.4 | — | 3.1 | 116.5 | 112.1 | — | 3.1 | 115.2 | ||||||||||||||||||||||||
Total goodwill | $ | 5,190.0 | $ | 48.8 | $ | 3.1 | $ | 5,241.9 | $ | 5,246.8 | $ | 64.9 | $ | 3.1 | $ | 5,314.8 | ||||||||||||||||
At December 31, 2018 | ||||||||||||||||||||||||||||||||
United States | $ | 2,715.3 | $ | 29.6 | $ | — | $ | 2,744.9 | $ | 2,715.3 | $ | 29.6 | $ | — | $ | 2,744.9 | ||||||||||||||||
United Kingdom | 753.7 | 9.2 | — | 762.9 | 753.7 | 9.2 | — | 762.9 | ||||||||||||||||||||||||
Canada | 378.6 | — | — | 378.6 | 378.6 | — | — | 378.6 | ||||||||||||||||||||||||
Australia | 406.3 | 0.3 | — | 406.6 | 406.3 | 0.3 | — | 406.6 | ||||||||||||||||||||||||
New Zealand | 209.6 | 10.2 | — | 219.8 | 209.6 | 10.2 | — | 219.8 | ||||||||||||||||||||||||
Other foreign | 110.1 | — | 2.7 | 112.8 | 110.1 | — | 2.7 | 112.8 | ||||||||||||||||||||||||
Total goodwill | $ | 4,573.6 | $ | 49.3 | $ | 2.7 | $ | 4,625.6 | $ | 4,573.6 | $ | 49.3 | $ | 2.7 | $ | 4,625.6 | ||||||||||||||||
Risk | ||||||||||||||||
Brokerage | Management | Corporate | Total | |||||||||||||
Balance as of December 31, 2018 | $ | 4,573.6 | $ | 49.3 | $ | 2.7 | $ | 4,625.6 | ||||||||
Goodwill acquired during the period | 738.8 | 16.9 | 0.4 | 756.1 | ||||||||||||
Goodwill adjustments due to appraisals and other acquisition adjustments | (1.3 | ) | (0.5 | ) | — | (1.8 | ) | |||||||||
Goodwill written-off related to sales of business | (7.2 | ) | — | — | (7.2 | ) | ||||||||||
Foreign currency translation adjustments during the period | (57.1 | ) | (0.8 | ) | — | (57.9 | ) | |||||||||
Balance as of September 30, 2019 | $ | 5,246.8 | $ | 64.9 | $ | 3.1 | $ | 5,314.8 | ||||||||
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Balance as of December 31, 2018 | $ | 4,573.6 | $ | 49.3 | $ | 2.7 | $ | 4,625.6 | ||||||||
Goodwill acquired during the period | 603.9 | — | 0.4 | 604.3 | ||||||||||||
Goodwill adjustments due to appraisals and other acquisition adjustments | 17.3 | (0.3 | ) | — | 17.0 | |||||||||||
Goodwill written-off related to sales of business | (7.2 | ) | — | — | (7.2 | ) | ||||||||||
Foreign currency translation adjustments during the period | 2.4 | (0.2 | ) | — | 2.2 | |||||||||||
Balance as of June 30, 2019 | $ | 5,190.0 | $ | 48.8 | $ | 3.1 | $ | 5,241.9 | ||||||||
June 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||
Expiration lists | $ | 3,749.6 | $ | 3,379.4 | $ | 3,880.4 | $ | 3,379.4 | ||||||||
Accumulated amortization - expiration lists | (1,824.6 | ) | (1,676.8 | ) | (1,890.9 | ) | (1,676.8 | ) | ||||||||
1,925.0 | 1,702.6 | 1,989.5 | 1,702.6 | |||||||||||||
Non-compete agreements | 74.6 | 58.0 | 76.1 | 58.0 | ||||||||||||
Accumulated amortization - non-compete agreements | (51.5 | ) | (48.5 | ) | (52.5 | ) | (48.5 | ) | ||||||||
23.1 | 9.5 | 23.6 | 9.5 | |||||||||||||
Trade names | 88.4 | 86.0 | 89.4 | 86.0 | ||||||||||||
Accumulated amortization - trade names | (27.7 | ) | (25.1 | ) | (29.0 | ) | (25.1 | ) | ||||||||
60.7 | 60.9 | 60.4 | 60.9 | |||||||||||||
Net amortizable assets | $ | 2,008.8 | $ | 1,773.0 | $ | 2,073.5 | $ | 1,773.0 | ||||||||
2019 (remaining three months) | $ | 85.3 | ||
2020 | 328.9 | |||
2021 | 304.7 | |||
2022 | 275.6 | |||
2023 | 249.2 | |||
Thereafter | 829.8 | |||
Total | $ | 2,073.5 | ||
2019 (remaining six months) | $ | 162.3 | ||||||
2020 | 311.8 | |||||||
2021 | 287.5 | |||||||
2022 | 258.3 | |||||||
2023 | 232.9 | |||||||
Thereafter | 756.0 | |||||||
Total | $ | 2,008.8 | ||||||
7. | Credit and Other Debt Agreements |
June 30, | December 31, | September 30, | December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Note Purchase Agreements: | ||||||||||||||||
Semi-annual payments of interest, fixed rate of 3.20%, balloon due June 24, 2019 | $ | — | $ | 50.0 | $ | — | $ | 50.0 | ||||||||
Semi-annual payments of interest, fixed rate of 5.85%, balloon due November 30, 2019 | 50.0 | 50.0 | 50.0 | 50.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 3.48%, balloon due June 24, 2020 | 50.0 | 50.0 | 50.0 | 50.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 3.99%, balloon due July 10, 2020 | 50.0 | 50.0 | 50.0 | 50.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 5.18%, balloon due February 10, 2021 | 75.0 | 75.0 | 75.0 | 75.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 3.69%, balloon due June 14, 2022 | 200.0 | 200.0 | 200.0 | 200.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 5.49%, balloon due February 10, 2023 | 50.0 | 50.0 | 50.0 | 50.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.13%, balloon due June 24, 2023 | 200.0 | 200.0 | 200.0 | 200.0 | ||||||||||||
Quarterly payments of interest, floating rate of 90 day LIBOR plus 1.65%, balloon due August 2, 2023 | 50.0 | 50.0 | 50.0 | 50.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.72%, balloon due February 13, 2024 | 100.0 | — | 100.0 | — | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.58%, balloon due February 27, 2024 | 325.0 | 325.0 | 325.0 | 325.0 | ||||||||||||
Quarterly payments of interest, floating rate of 90 day LIBOR plus 1.40%, balloon due June 13, 2024 | 50.0 | 50.0 | 50.0 | 50.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.31%, balloon due June 24, 2025 | 200.0 | 200.0 | 200.0 | 200.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.85%, balloon due February 13, 2026 | 140.0 | — | 140.0 | — | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.73%, balloon due February 27, 2026 | 175.0 | 175.0 | 175.0 | 175.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.40%, balloon due June 2, 2026 | 175.0 | 175.0 | 175.0 | 175.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.36%, balloon due June 24, 2026 | 150.0 | 150.0 | 150.0 | 150.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.09%, balloon due June 27, 2027 | 125.0 | 125.0 | 125.0 | 125.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.09%, balloon due August 2, 2027 | 125.0 | 125.0 | 125.0 | 125.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.14%, balloon due August 4, 2027 | 98.0 | 98.0 | 98.0 | 98.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 3.46%, balloon due December 1, 2027 | 100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.55%, balloon due June 2, 2028 | 75.0 | 75.0 | 75.0 | 75.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.34%, balloon due June 13, 2028 | 125.0 | 125.0 | 125.0 | 125.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 5.04%, balloon due February 13, 2029 | 100.0 | — | 100.0 | — | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.98%, balloon due February 27, 2029 | 100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.19%, balloon due June 27, 2029 | 50.0 | 50.0 | 50.0 | 50.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.19%, balloon due August 2, 2029 | 50.0 | 50.0 | 50.0 | 50.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.44%, balloon due June 13, 2030 | 125.0 | 125.0 | 125.0 | 125.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 5.14%, balloon due March 13, 2031 | 180.0 | — | 180.0 | — | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.70%, balloon due June 2, 2031 | 25.0 | 25.0 | 25.0 | 25.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.34%, balloon due June 27, 2032 | 75.0 | 75.0 | 75.0 | 75.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.34%, balloon due August 2, 2032 | 75.0 | 75.0 | 75.0 | 75.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.59%, balloon due June 13, 2033 | 125.0 | 125.0 | 125.0 | 125.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 5.29%, balloon due March 13, 2034 | 40.0 | — | 40.0 | — | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.48%, balloon due June 12, 2034 | 175.0 | — | 175.0 | — | ||||||||||||
Semi-annual payments of interest, fixed rate of 4.69%, balloon due June 13, 2038 | 75.0 | 75.0 | 75.0 | 75.0 | ||||||||||||
Semi-annual payments of interest, fixed rate of 5.45%, balloon due March 13, 2039 | 40.0 | — | 40.0 | — | ||||||||||||
Total Note Purchase Agreements | 3,923.0 | 3,198.0 | 3,923.0 | 3,198.0 | ||||||||||||
Credit Agreement: | ||||||||||||||||
Periodic payments of interest and principal, prime or LIBOR plus up to 1.45%, expires June 7, 2024 | 325.0 | 265.0 | ||||||||||||||
Periodic payments of interest and principal, prime or LIBOR plus up to 1.45 %, expires June 7,2024 | 390.0 | 265.0 | ||||||||||||||
Premium Financing Debt Facility - expires May 18, 2020: | ||||||||||||||||
Periodic payments of interest and principal, Interbank rates plus 1.05% for Facility B; plus 0.55% for Facilities C and D | ||||||||||||||||
Premium Financing Debt Facility - expires July 18, 2021: | ||||||||||||||||
Facility B | ||||||||||||||||
AUD denominated tranche | 111.7 | 133.9 | ||||||||||||||
NZD denominated tranche | — | 10.1 | ||||||||||||||
AUD denominated tranche, interbank rates plus 1.100% | 138.8 | 133.9 | ||||||||||||||
NZD denominated tranche, interbank rates plus 1.150% | — | 10.1 | ||||||||||||||
Facility C and D | ||||||||||||||||
AUD denominated tranche | 15.6 | — | ||||||||||||||
NZD denominated tranche | 10.0 | 10.0 | ||||||||||||||
AUD denominated tranche, interbank rates plus 0.575% | 21.9 | — | ||||||||||||||
NZD denominated tranche, interbank rates plus 0.600% | 9.4 | 10.0 | ||||||||||||||
Total Premium Financing Debt Facility | 137.3 | 154.0 | 170.1 | 154.0 | ||||||||||||
Total corporate and other debt | 4,385.3 | 3,617.0 | 4,483.1 | 3,617.0 | ||||||||||||
Less unamortized debt acquisition costs on Note Purchase Agreements | (7.4 | ) | (6.6 | ) | (7.2 | ) | (6.6 | ) | ||||||||
Net corporate and other debt | $ | 4,377.9 | $ | 3,610.4 | $ | 4,475.9 | $ | 3,610.4 | ||||||||
8. | Earnings Per Share |
Three-month period endedJune 30, | Six-month period endedJune 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net earnings attributable to controlling interests | $ | 110.1 | $ | 114.9 | $ | 444.2 | $ | 388.6 | ||||||||
Weighted average number of common shares outstanding | 185.8 | 182.4 | 185.1 | 181.9 | ||||||||||||
Dilutive effect of stock options using the treasury stock method | 4.0 | 3.1 | 4.0 | 3.3 | ||||||||||||
Weighted average number of common and common equivalent shares outstanding | 189.8 | 185.5 | 189.1 | 185.2 | ||||||||||||
Basic net earnings per share | $ | 0.59 | $ | 0.63 | $ | 2.40 | $ | 2.14 | ||||||||
Diluted net earnings per share | $ | 0.58 | $ | 0.62 | $ | 2.35 | $ | 2.10 | ||||||||
Three-month period endedSeptember 30, | Nine-month period endedSeptember 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net earnings attributable to controlling interests | $ | 126.1 | $ | 127.6 | $ | 570.3 | $ | 516.2 | ||||||||
Weighted average number of common shares outstanding | 186.3 | 183.3 | 185.5 | 182.4 | ||||||||||||
Dilutive effect of stock options using the treasury stock method | 4.4 | 3.5 | 4.1 | 3.3 | ||||||||||||
Weighted average number of common and common equivalent shares outstanding | 190.7 | 186.8 | 189.6 | 185.7 | ||||||||||||
Basic net earnings per share | $ | 0.68 | $ | 0.70 | $ | 3.07 | $ | 2.83 | ||||||||
Diluted net earnings per share | $ | 0.66 | $ | 0.68 | $ | 3.01 | $ | 2.78 | ||||||||
9. | Stock Option Plans |
2019 | 2018 | |||||||
Expected dividend yield | 1.7 | % | 2.3 | % | ||||
Expected risk-free interest rate | 2.5 | % | 2.7 | % | ||||
Volatility | 15.6 | % | 15.1 | % | ||||
Expected life (in years) | 5.5 | 5.5 |
Six-month period ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Shares Under Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||||||||||||||||||||||
Nine-month period ended September 30, 2019 | ||||||||||||||||||||||||||||||||
Shares Under Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||||||||||||||||||||||
Beginning balance | 8.8 | $ | 50.16 | 8.8 | $ | 50.16 | ||||||||||||||||||||||||||
Granted | 1.3 | 79.59 | 1.3 | 79.59 | ||||||||||||||||||||||||||||
Exercised | (1.3 | ) | 42.34 | (1.5 | ) | 42.60 | ||||||||||||||||||||||||||
Forfeited or canceled | (0.1 | ) | 55.66 | (0.2 | ) | 56.16 | ||||||||||||||||||||||||||
Ending balance | 8.7 | $ | 55.55 | 4.09 | $ | 279.0 | 8.4 | $ | 55.92 | 3.90 | $ | 281.0 | ||||||||||||||||||||
Exercisable at end of period | 2.7 | $ | 44.81 | 2.22 | $ | 113.7 | 2.4 | $ | 44.92 | 2.00 | $ | 106.3 | ||||||||||||||||||||
Ending unvested and expected to vest | 5.8 | $ | 59.67 | 4.85 | $ | 160.7 | 5.8 | $ | 59.74 | 4.61 | $ | 170.2 | ||||||||||||||||||||
Options Outstanding | Options Exercisable | Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining | Weighted | Weighted | Remaining | Weighted | Weighted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual | Average | Average | Contractual | Average | Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Term | Exercise | Number | Exercise | Number | Term | Exercise | Number | Exercise | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Range of Exercise Prices | Range of Exercise Prices | Outstanding | (in years) | Price | Exercisable | Price | Range of Exercise Prices | Outstanding | (in years) | Price | Exercisable | Price | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 39.17 | — | $ | 39.17 | 0.4 | 0.70 | $ | 39.17 | 0.5 | $ | 39.17 | 39.17 | — | $ | 39.17 | 0.4 | 0.45 | $ | 39.17 | 0.3 | $ | 39.17 | |||||||||||||||||||||||||||||||||||||||
43.71 | — | 43.71 | 2.0 | 3.72 | 43.71 | 0.5 | 43.71 | 43.71 | — | 43.71 | 1.9 | 3.46 | 43.71 | 0.5 | 43.71 | ||||||||||||||||||||||||||||||||||||||||||||||
46.17 | — | 46.87 | 2.3 | 2.27 | 46.47 | 1.7 | 46.56 | 46.17 | — | 46.87 | 2.1 | 2.03 | 46.46 | 1.6 | 46.56 | ||||||||||||||||||||||||||||||||||||||||||||||
47.92 | 63.60 | 1.5 | 4.71 | 56.83 | — | — | 47.92 | 63.60 | 1.5 | 4.46 | 56.81 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
70.74 | — | 70.74 | 1.2 | 5.71 | 70.74 | — | — | 70.74 | — | 70.74 | 1.2 | 5.46 | 70.74 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
79.59 | — | 79.59 | 1.3 | 6.71 | 79.59 | — | — | 79.59 | — | 79.59 | 1.3 | 6.46 | 79.59 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 39.17 | — | $ | 79.59 | 8.7 | 4.09 | $ | 55.55 | 2.7 | $ | 44.81 | 39.17 | — | $ | 79.59 | 8.4 | 3.90 | $ | 55.92 | 2.4 | $ | 44.92 | |||||||||||||||||||||||||||||||||||||||
10. | Deferred Compensation |
11. | Restricted Stock, Performance Share and Cash Awards |
12. | Investments |
September 30, 2019 | December 31, | |||||||||||||||||||
Funding | 2018 | |||||||||||||||||||
June 30, 2019 | December 31, 2018 | Assets | Commitments | Assets | ||||||||||||||||
Chem-Mod LLC | $ | 4.0 | $ | 4.0 | $ | 4.0 | $ | — | $ | 4.0 | ||||||||||
Chem-Mod International LLC | 2.0 | 2.0 | 2.0 | — | 2.0 | |||||||||||||||
Clean-coal investments: | ||||||||||||||||||||
Controlling interest in six limited liability companies that own fourteen 2009 Era Clean Coal Plants | 2.5 | 5.1 | 1.3 | — | 5.1 | |||||||||||||||
Non-controlling interest in one limited liability company that owns one 2011 Era Clean Coal Plant | 0.3 | 0.4 | 0.3 | — | 0.4 | |||||||||||||||
Controlling interest in seventeen limited liability companies that own nineteen 2011 Era Clean Coal Plants | 36.0 | 43.0 | 29.3 | 3.5 | 43.0 | |||||||||||||||
Other investments | 4.4 | 5.0 | 4.4 | — | 5.0 | |||||||||||||||
Total investments | $ | 49.2 | $ | 59.5 | $ | 41.3 | $ | 3.5 | $ | 59.5 | ||||||||||
13. | Leases |
Lease Components | Statement of Earnings Classification | Three-month periodended June 30, 2019 | Six-month periodended June 30, 2019 | Statement of Earnings Classification | Three-month periodended September 30, 2019 | Nine-month periodended September 30, 2019 | ||||||||||||||
Operating lease expense | Operating expense | $ | 29.4 | $ | 58.9 | Operating expense | $ | 30.2 | $ | 89.1 | ||||||||||
Variable lease expense | Operating expense | 4.5 | 9.0 | Operating expense | 5.2 | 14.2 | ||||||||||||||
Sublease income | Investment income | (0.3 | ) | (0.6 | ) | Investment income | (0.3 | ) | (0.9 | ) | ||||||||||
Net lease expense | $ | 33.6 | $ | 67.3 | $ | 35.1 | $ | 102.4 | ||||||||||||
Supplemental Cash Flow Information Related to Leases (in millions) | Six-month periodended June 30, 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 57.6 | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 25.2 |
Supplemental Cash Flow Information Related to Leases (in millions) | Nine-month periodended September 30, 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 86.4 | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 64.3 |
Lease Components | Balance Sheet Classification | June 30, 2019 | Balance Sheet Classification | September 30, 2019 | ||||||||
Lease right-of-use assets | Right-of-use assets | $ | 368.4 | Right-of-use assets | $ | 384.5 | ||||||
Other current lease liabilities | Accrued compensation and other current liabilities | $ | 75.4 | Accrued compensation and other current liabilities | $ | 82.6 | ||||||
Lease liabilities | Lease liabilities - noncurrent | 327.4 | Lease liabilities - noncurrent | 335.3 | ||||||||
Total lease liabilities | $ | 402.8 | $ | 417.9 | ||||||||
Weighted-average remaining lease term, years | 5.4 years | 5.4 years | ||||||||||
Weighted-average discount rate | 3.9 | % | 3.8 | % |
2019 (remaining six months) | $ | 48.5 | ||||||
2019 (remaining three months) | $ | 21.9 | ||||||
2020 | 100.3 | 107.9 | ||||||
2021 | 85.2 | 94.1 | ||||||
2022 | 66.4 | 74.6 | ||||||
2023 | 51.3 | 59.0 | ||||||
Thereafter | 100.0 | 115.8 | ||||||
Total lease payments | 451.7 | 473.3 | ||||||
Less interest | (48.9 | ) | (55.4 | ) | ||||
Total | $ | 402.8 | $ | 417.9 | ||||
14. | Derivatives and Hedging Activity |
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||||
Instrument | Notional Amount | Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | Notional Amount | Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||||||||||||||||
At June 30, 2019 | ||||||||||||||||||||||||||||||||
At September 30, 2019 | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 600.0 | Other current assets | $ | — | Accrued compensation and other current liabilities | $ | 20.3 | $ | 900.0 | Other current assets | $ | — | Accrued compensation and other current liabilities | $ | 43.7 | ||||||||||||||||
Other noncurrent liabilities | 28.9 | Other noncurrent liabilities | 33.1 | |||||||||||||||||||||||||||||
Foreign exchange contracts (1) | 33.5 | Other current assets | 0.9 | Accrued compensation and other current liabilities | 3.3 | 29.7 | Other current assets | 1.6 | Accrued compensation and other current liabilities | 7.0 | ||||||||||||||||||||||
Other noncurrent assets | 2.5 | Other noncurrent liabilities | 4.0 | Other noncurrent assets | 5.8 | Other noncurrent liabilities | 9.5 | |||||||||||||||||||||||||
Total | $ | 633.5 | $ | 3.4 | $ | 56.5 | $ | 929.7 | $ | 7.4 | $ | 93.3 | ||||||||||||||||||||
At December 31, 2018 | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 850.0 | Other current assets | $ | 3.0 | Accrued compensation and other current liabilities | $ | 13.0 | $ | 850.0 | Other current assets | $ | 3.0 | Accrued compensation and other current liabilities | $ | 13.0 | ||||||||||||||||
Foreign exchange contracts (1) | 51.4 | Other current assets | 0.9 | Accrued compensation and other current liabilities | 4.9 | 51.4 | Other current assets | 0.9 | Accrued compensation and other current liabilities | 4.9 | ||||||||||||||||||||||
Other noncurrent assets | 5.7 | Other noncurrent liabilities | 7.9 | Other noncurrent assets | 5.7 | Other noncurrent liabilities | 7.9 | |||||||||||||||||||||||||
Total | $ | 901.4 | $ | 9.6 | $ | 25.8 | $ | 901.4 | $ | 9.6 | $ | 25.8 | ||||||||||||||||||||
(1) | Included within foreign exchange contracts at |
Instrument | Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Earnings (1) | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Earnings into Earnings | Amount of Gain (Loss) Recognized in Earnings Related to Amount Excluded from Effectiveness Testing | Statement of Earnings Classification | ||||||||||
Three-month period ended June 30, 2019 | ||||||||||||||
Interest rate contracts | $ | (25.8 | ) | $ | (0.3 | ) | $ | — | Interest expense | |||||
Foreign exchange contracts | (3.6 | ) | (0.1 | ) | (0.2 | ) | Commission revenue | |||||||
(0.4 | ) | 0.3 | Compensation expense | |||||||||||
(0.4 | ) | 0.3 | Operating expense | |||||||||||
Total | $ | (29.4 | ) | $ | (1.2 | ) | $ | 0.4 | ||||||
Three-month period ended June 30, 2018 | ||||||||||||||
Interest rate contracts | $ | 1.7 | $ | 0.3 | Interest expense | |||||||||
Foreign exchange contracts | (10.4 | ) | 0.4 | Commission revenue | ||||||||||
0.4 | Compensation expense | |||||||||||||
0.2 | Operating expense | |||||||||||||
Total | $ | (8.7 | ) | $ | 1.3 | |||||||||
Six-month period ended June 30, 2019 | ||||||||||||||
Interest rate contracts | $ | (46.7 | ) | $ | (0.6 | ) | $ | — | Interest expense | |||||
Foreign exchange contracts | 0.1 | (0.2 | ) | (0.4 | ) | Commission revenue | ||||||||
(0.6 | ) | 0.7 | Compensation expense | |||||||||||
(0.5 | ) | 0.5 | Operating expense | |||||||||||
Total | $ | (46.6 | ) | $ | (1.9 | ) | $ | 0.8 | ||||||
Six-month period ended June 30, 2018 | ||||||||||||||
Interest rate contracts | $ | 5.9 | $ | 0.5 | Interest expense | |||||||||
Foreign exchange contracts | (6.1 | ) | 1.1 | Commission revenue | ||||||||||
0.9 | Compensation expense | |||||||||||||
0.6 | Operating expense | |||||||||||||
Total | $ | (0.2 | ) | $ | 3.1 | |||||||||
Instrument | Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss (1) | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Loss into Earnings | Amount of Gain (Loss) Recognized in Earnings Related to Amount Excluded from Effectiveness Testing | Statement of Earnings Classification | ||||||||||||
Three-month period ended September 30, 2019 | ||||||||||||||||
Interest rate contracts | $ | (28.0 | ) | $ | (0.3 | ) | $ | — | Interest expense | |||||||
Foreign exchange contracts | (6.0 | ) | (0.2 | ) | (0.2 | ) | Commission revenue | |||||||||
(0.4 | ) | 0.3 | Compensation expense | |||||||||||||
(0.2 | ) | 0.2 | Operating expense | |||||||||||||
Total | $ | (34.0 | ) | $ | (1.1 | ) | $ | 0.3 | ||||||||
Three-month period ended September 30, 2018 | ||||||||||||||||
Interest rate contracts | $ | 7.6 | $ | 0.3 | Interest expense | |||||||||||
Foreign exchange contracts | (3.2 | ) | 0.4 | Commission revenue | ||||||||||||
0.2 | Compensation expense | |||||||||||||||
0.2 | Operating expense | |||||||||||||||
Total | $ | 4.4 | $ | 1.1 | ||||||||||||
Nine-month period ended September 30, 2019 | ||||||||||||||||
Interest rate contracts | $ | (74.7 | ) | $ | (0.9 | ) | $ | — | Interest expense | |||||||
Foreign exchange contracts | (5.9 | ) | (0.4 | ) | (0.6 | ) | Commission revenue | |||||||||
(1.0 | ) | 1.0 | Compensation expense | |||||||||||||
(0.7 | ) | 0.7 | Operating expense | |||||||||||||
Total | $ | (80.6 | ) | $ | (3.0 | ) | $ | 1.1 | ||||||||
Nine-month period ended September 30, 2018 | ||||||||||||||||
Interest rate contracts | $ | 13.5 | $ | 0.8 | Interest expense | |||||||||||
Foreign exchange contracts | (9.3 | ) | 1.5 | Commission revenue | ||||||||||||
1.1 | Compensation expense | |||||||||||||||
0.8 | Operating expense | |||||||||||||||
Total | $ | 4.2 | $ | 4.2 | ||||||||||||
(1) | For the three-month and |
15. | Commitments, Contingencies and Off-Balance Sheet Arrangements |
Payments Due by Period | ||||||||||||||||||||||||||||
Contractual Obligations | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||
Note purchase agreements | $ | 50.0 | $ | 100.0 | $ | 75.0 | $ | 200.0 | $ | 300.0 | $ | 3,198.0 | $ | 3,923.0 | ||||||||||||||
Credit Agreement | 325.0 | — | — | — | — | — | 325.0 | |||||||||||||||||||||
Premium Financing Debt Facility | 137.3 | — | — | — | — | — | 137.3 | |||||||||||||||||||||
Interest on debt | 87.5 | 171.0 | 165.8 | 160.1 | 150.6 | 698.9 | 1,433.9 | |||||||||||||||||||||
Total debt obligations | 599.8 | 271.0 | 240.8 | 360.1 | 450.6 | 3,896.9 | 5,819.2 | |||||||||||||||||||||
Operating lease obligations | 48.5 | 100.3 | 85.2 | 66.4 | 51.3 | 100.0 | 451.7 | |||||||||||||||||||||
Less sublease arrangements | (1.0 | ) | (0.8 | ) | (0.8 | ) | (0.3 | ) | (0.2 | ) | (0.9 | ) | (4.0 | ) | ||||||||||||||
Outstanding purchase obligations | 34.7 | 41.7 | 34.1 | 16.8 | 8.0 | 23.1 | 158.4 | |||||||||||||||||||||
Total contractual obligations | $ | 682.0 | $ | 412.2 | $ | 359.3 | $ | 443.0 | $ | 509.7 | $ | 4,019.1 | $ | 6,425.3 | ||||||||||||||
Payments Due by Period | ||||||||||||||||||||||||||||
Contractual Obligations | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||
Note purchase agreements | $ | 50.0 | $ | 100.0 | $ | 75.0 | $ | 200.0 | $ | 300.0 | $ | 3,198.0 | $ | 3,923.0 | ||||||||||||||
Credit Agreement | 390.0 | — | — | — | — | — | 390.0 | |||||||||||||||||||||
Premium Financing Debt Facility | 170.1 | — | — | — | — | — | 170.1 | |||||||||||||||||||||
Interest on debt | 46.5 | 170.8 | 165.8 | 160.1 | 150.8 | 699.2 | 1,393.2 | |||||||||||||||||||||
Total debt obligations | 656.6 | 270.8 | 240.8 | 360.1 | 450.8 | 3,897.2 | 5,876.3 | |||||||||||||||||||||
Operating lease obligations | 21.9 | 107.9 | 94.1 | 74.6 | 59.0 | 115.8 | 473.3 | |||||||||||||||||||||
Less sublease arrangements | (0.3 | ) | (0.9 | ) | (0.8 | ) | (0.3 | ) | (0.2 | ) | (0.9 | ) | (3.4 | ) | ||||||||||||||
Outstanding purchase obligations | 26.8 | 40.1 | 37.6 | 18.8 | 8.9 | 23.1 | 155.3 | |||||||||||||||||||||
Total contractual obligations | $ | 705.0 | $ | 417.9 | $ | 371.7 | $ | 453.2 | $ | 518.5 | $ | 4,035.2 | $ | 6,501.5 | ||||||||||||||
Total | ||||||||||||||||||||||||||||
Amount of Commitment Expiration by Period | Amounts | |||||||||||||||||||||||||||
Off-Balance Sheet Commitments | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Committed | |||||||||||||||||||||
Letters of credit | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 17.8 | $ | 17.8 | ||||||||||||||
Financial guarantees | — | 0.2 | 0.2 | 0.2 | 0.2 | 0.6 | 1.4 | |||||||||||||||||||||
Funding commitments | 3.5 | — | — | — | — | — | 3.5 | |||||||||||||||||||||
Total commitments | $ | 3.5 | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 18.4 | $ | 22.7 | ||||||||||||||
Total | |||||||||||||||||||||||||||||
Amount of Commitment Expiration by Period | Amounts | ||||||||||||||||||||||||||||
Off-Balance Sheet Commitments | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Committed | ||||||||||||||||||||||
Letters of credit | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 18.3 | $ | 18.3 | |||||||||||||||
Financial guarantees | 0.1 | 0.2 | 0.2 | 0.2 | 0.2 | 0.6 | 1.5 | ||||||||||||||||||||||
Total commitments | $ | 0.1 | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 18.9 | $ | 19.8 | |||||||||||||||
16. | Supplemental Disclosures of Cash Flow Information |
Six-month period ended June 30, | Nine-month periodended September 30, | |||||||||||||||
Supplemental disclosures of cash flow information (in millions): | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Interest paid | $ | 74.6 | $ | 65.9 | $ | 119.5 | $ | 98.8 | ||||||||
Income taxes paid, net | 31.2 | 40.5 | 49.8 | 50.8 |
June 30, | ||||||||
2019 | 2018 | |||||||
Cash and cash equivalents | $ | 512.3 | $ | 652.2 | ||||
Restricted cash | 2,034.3 | 1,692.5 | ||||||
Total cash, cash equivalents and restricted cash | $ | 2,546.6 | $ | 2,344.7 | ||||
September 30, | ||||||||
2019 | 2018 | |||||||
Cash and cash equivalents | $ | 578.9 | $ | 605.0 | ||||
Restricted cash | 2,028.4 | 1,655.5 | ||||||
Total cash, cash equivalents and restricted cash | $ | 2,607.3 | $ | 2,260.5 | ||||
17. | Accumulated Other Comprehensive |
Pension Liability | Foreign Currency Translation | Fair Value of Derivative Investments | Accumulated Comprehensive Earnings (Loss) | |||||||||||||
Balance as of December 31, 2018 | $ | (61.2 | ) | $ | (719.0 | ) | $ | (5.4 | ) | $ | (785.6 | ) | ||||
Cumulative effect of adoption of new accounting standards | — | — | (0.2 | ) | (0.2 | ) | ||||||||||
Net change in period | 2.4 | 13.8 | (32.9 | ) | (16.7 | ) | ||||||||||
Balance as of June 30, 2019 | $ | (58.8 | ) | $ | (705.2 | ) | $ | (38.5 | ) | $ | (802.5 | ) | ||||
Pension Liability | Foreign Currency Translation | Fair Value of Derivative Investments | Accumulated Comprehensive Loss | |||||||||||||
Balance as of December 31, 2018 | $ | (61.2 | ) | $ | (719.0 | ) | $ | (5.4 | ) | $ | (785.6 | ) | ||||
Cumulative effect of adoption of new accounting standards | — | — | (0.2 | ) | (0.2 | ) | ||||||||||
Net change in period | 3.4 | (84.9 | ) | (57.8 | ) | (139.3 | ) | |||||||||
Balance as of September 30, 2019 | $ | (57.8 | ) | $ | (803.9 | ) | $ | (63.4 | ) | $ | (925.1 | ) | ||||
18. | Segment Information |
Three-month periodended June 30, | Six-month periodended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Brokerage | ||||||||||||||||
Total revenues | $ | 1,131.2 | $ | 1,000.1 | $ | 2,513.1 | $ | 2,195.7 | ||||||||
Earnings before income taxes | $ | 182.3 | $ | 170.6 | $ | 594.7 | $ | 489.5 | ||||||||
Identifiable assets at June 30, 2019 and 2018 | $ | 16,464.3 | $ | 13,779.0 | ||||||||||||
Risk Management | ||||||||||||||||
Total revenues | $ | 242.1 | $ | 237.3 | $ | 478.5 | $ | 467.2 | ||||||||
Earnings before income taxes | $ | 21.0 | $ | 24.0 | $ | 43.0 | $ | 45.6 | ||||||||
Identifiable assets at June 30, 2019 and 2018 | $ | 847.9 | $ | 739.5 | ||||||||||||
Corporate | ||||||||||||||||
Total revenues | $ | 284.5 | $ | 423.0 | $ | 656.8 | $ | 835.2 | ||||||||
Loss before income taxes | $ | (97.8 | ) | $ | (91.0 | ) | $ | (210.4 | ) | $ | (189.2 | ) | ||||
�� | ||||||||||||||||
Identifiable assets at June 30, 2019 and 2018 | $ | 1,888.1 | $ | 1,712.0 | ||||||||||||
Three-month period ended September 30, | Nine-month period ended | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Brokerage | ||||||||||||||||
Total revenues | $ | 1,195.9 | $ | 1,049.4 | $ | 3,709.0 | $ | 3,245.1 | ||||||||
Earnings before income taxes | $ | 199.9 | $ | 163.2 | $ | 794.6 | $ | 652.7 | ||||||||
Identifiable assets at September 30, 2019 and 2018 | $ | 16,261.6 | $ | 13,700.7 | ||||||||||||
Risk Management | ||||||||||||||||
Total revenues | $ | 246.3 | $ | 236.4 | $ | 724.8 | $ | 703.6 | ||||||||
Earnings before income taxes | $ | 21.7 | $ | 22.3 | $ | 64.7 | $ | 67.9 | ||||||||
Identifiable assets at September 30, 2019 and 2018 | $ | 920.8 | $ | 748.3 | ||||||||||||
Corporate | ||||||||||||||||
Total revenues | $ | 383.0 | $ | 492.7 | $ | 1,039.8 | $ | 1,327.9 | ||||||||
Loss before income taxes | $ | (106.8 | ) | $ | (95.2 | ) | $ | (317.2 | ) | $ | (284.4 | ) | ||||
Identifiable assets at September 30, 2019 and 2018 | $ | 1,991.4 | $ | 1,665.7 | ||||||||||||
Total | ||||||||||||||||
Total revenues | $ | 1,825.2 | $ | 1,778.5 | $ | 5,473.6 | $ | 5,276.6 | ||||||||
Earnings before income taxes | $ | 114.8 | $ | 90.3 | $ | 542.1 | $ | 436.2 | ||||||||
Identifiable assets at September 30, 2019 and 2018 | $ | 19,173.8 | $ | 16,114.7 |
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Revenues: | ||||||||||||||||
Commissions | $ | 777.7 | $ | — | $ | — | $ | 777.7 | ||||||||
Fees | 256.1 | 208.6 | — | 464.7 | ||||||||||||
Supplemental revenues | 46.9 | — | — | 46.9 | ||||||||||||
Contingent revenues | 29.5 | — | — | 29.5 | ||||||||||||
Investment income | 19.1 | 0.5 | — | 19.6 | ||||||||||||
Net gains on divestitures | 1.9 | — | — | 1.9 | ||||||||||||
Revenues from clean coal activities | — | — | 284.4 | 284.4 | ||||||||||||
Other net gains | — | — | 0.1 | 0.1 | ||||||||||||
Revenues before reimbursements | 1,131.2 | 209.1 | 284.5 | 1,624.8 | ||||||||||||
Reimbursements | — | 33.0 | — | 33.0 | ||||||||||||
Total revenues | $ | 1,131.2 | $ | 242.1 | $ | 284.5 | $ | 1,657.8 | ||||||||
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Revenues: | ||||||||||||||||
Commissions | $ | 809.9 | $ | — | $ | — | $ | 809.9 | ||||||||
Fees | 278.9 | 211.2 | — | 490.1 | ||||||||||||
Supplemental revenues | 49.8 | — | — | 49.8 | ||||||||||||
Contingent revenues | 30.4 | — | — | 30.4 | ||||||||||||
Investment income | 23.6 | 0.4 | — | 24.0 | ||||||||||||
Net gains on divestitures | 3.3 | — | — | 3.3 | ||||||||||||
Revenues from clean coal activities | — | — | 386.0 | 386.0 | ||||||||||||
Other net losses | — | — | (3.0 | ) | (3.0 | ) | ||||||||||
Revenues before reimbursements | 1,195.9 | 211.6 | 383.0 | 1,790.5 | ||||||||||||
Reimbursements | — | 34.7 | — | 34.7 | ||||||||||||
Total revenues | $ | 1,195.9 | $ | 246.3 | $ | 383.0 | $ | 1,825.2 | ||||||||
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Revenues: | ||||||||||||||||
Commissions | $ | 1,718.1 | $ | — | $ | — | $ | 1,718.1 | ||||||||
Fees | 517.9 | 411.5 | — | 929.4 | ||||||||||||
Supplemental revenues | 103.6 | — | — | 103.6 | ||||||||||||
Contingent revenues | 77.5 | — | — | 77.5 | ||||||||||||
Investment income | 37.0 | 0.9 | — | 37.9 | ||||||||||||
Net gains on divestitures | 59.0 | — | — | 59.0 | ||||||||||||
Revenues from clean coal activities | — | — | 656.7 | 656.7 | ||||||||||||
Other net gains | — | — | 0.1 | 0.1 | ||||||||||||
Revenues before reimbursements | 2,513.1 | 412.4 | 656.8 | 3,582.3 | ||||||||||||
Reimbursements | — | 66.1 | — | 66.1 | ||||||||||||
Total revenues | $ | 2,513.1 | $ | 478.5 | $ | 656.8 | $ | 3,648.4 | ||||||||
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Revenues: | ||||||||||||||||
Commissions | $ | 2,528.0 | $ | — | $ | — | $ | 2,528.0 | ||||||||
Fees | 796.8 | 622.7 | — | 1,419.5 | ||||||||||||
Supplemental revenues | 153.4 | — | — | 153.4 | ||||||||||||
Contingent revenues | 107.9 | — | — | 107.9 | ||||||||||||
Investment income | 60.6 | 1.3 | — | 61.9 | ||||||||||||
Net gains on divestitures | 62.3 | — | — | 62.3 | ||||||||||||
Revenues from clean coal activities | — | — | 1,042.7 | 1,042.7 | ||||||||||||
Other net losses | — | — | (2.9 | ) | (2.9 | ) | ||||||||||
Revenues before reimbursements | 3,709.0 | 624.0 | 1,039.8 | 5,372.8 | ||||||||||||
Reimbursements | — | 100.8 | — | 100.8 | ||||||||||||
Total revenues | $ | 3,709.0 | $ | 724.8 | $ | 1,039.8 | $ | 5,473.6 | ||||||||
Brokerage | Risk Management | Corporate | Total | Brokerage | Risk Management | Corporate | Total | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
United States | $ | 685.3 | $ | 206.9 | $ | 284.5 | $ | 1,176.7 | $ | 795.9 | $ | 208.6 | $ | 383.0 | $ | 1,387.5 | ||||||||||||||||
United Kingdom | 248.7 | 10.0 | — | 258.7 | 221.8 | 10.4 | — | 232.2 | ||||||||||||||||||||||||
Australia | 58.8 | 20.0 | — | 78.8 | 52.9 | 22.5 | — | 75.4 | ||||||||||||||||||||||||
Canada | 58.4 | 1.1 | — | 59.5 | 52.6 | 1.0 | — | 53.6 | ||||||||||||||||||||||||
New Zealand | 41.2 | 4.1 | — | 45.3 | 36.1 | 3.8 | — | 39.9 | ||||||||||||||||||||||||
Other foreign | 38.8 | — | — | 38.8 | 36.6 | — | — | 36.6 | ||||||||||||||||||||||||
Total revenues | $ | 1,131.2 | $ | 242.1 | $ | 284.5 | $ | 1,657.8 | $ | 1,195.9 | $ | 246.3 | $ | 383.0 | $ | 1,825.2 | ||||||||||||||||
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 1,691.8 | $ | 405.4 | $ | 656.8 | $ | 2,754.0 | ||||||||
United Kingdom | 452.4 | 20.2 | — | 472.6 | ||||||||||||
Australia | 104.8 | 42.5 | — | 147.3 | ||||||||||||
Canada | 115.6 | 2.3 | — | 117.9 | ||||||||||||
New Zealand | 71.5 | 8.1 | — | 79.6 | ||||||||||||
Other foreign | 77.0 | — | — | 77.0 | ||||||||||||
Total revenues | $ | 2,513.1 | $ | 478.5 | $ | 656.8 | $ | 3,648.4 | ||||||||
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 2,487.6 | $ | 614.0 | $ | 1,039.8 | $ | 4,141.4 | ||||||||
United Kingdom | 674.2 | 30.6 | — | 704.8 | ||||||||||||
Australia | 157.7 | 65.0 | — | 222.7 | ||||||||||||
Canada | 168.2 | 3.3 | — | 171.5 | ||||||||||||
New Zealand | 107.7 | 11.9 | — | 119.6 | ||||||||||||
Other foreign | 113.6 | — | — | 113.6 | ||||||||||||
Total revenues | $ | 3,709.0 | $ | 724.8 | $ | 1,039.8 | $ | 5,473.6 | ||||||||
Brokerage | Risk Management | Corporate | Total | Brokerage | Risk Management | Corporate | Total | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Commissions | $ | 688.0 | $ | — | $ | — | $ | 688.0 | $ | 707.6 | $ | — | $ | — | $ | 707.6 | ||||||||||||||||
Fees | 220.4 | 201.8 | — | 422.2 | 253.7 | 199.0 | — | 452.7 | ||||||||||||||||||||||||
Supplemental revenues | 48.1 | — | — | 48.1 | 43.9 | — | — | 43.9 | ||||||||||||||||||||||||
Contingent revenues | 21.8 | — | — | 21.8 | 25.7 | — | — | 25.7 | ||||||||||||||||||||||||
Investment income | 15.7 | 0.1 | — | 15.8 | 17.9 | 0.1 | — | 18.0 | ||||||||||||||||||||||||
Net gains on divestitures | 6.1 | — | — | 6.1 | 0.6 | — | — | 0.6 | ||||||||||||||||||||||||
Revenues from clean coal activities | — | — | 422.4 | 422.4 | — | — | 492.4 | 492.4 | ||||||||||||||||||||||||
Other net revenues | — | — | 0.6 | 0.6 | — | — | 0.3 | 0.3 | ||||||||||||||||||||||||
Revenues before reimbursements | 1,000.1 | 201.9 | 423.0 | 1,625.0 | 1,049.4 | 199.1 | 492.7 | 1,741.2 | ||||||||||||||||||||||||
Reimbursements | — | 35.4 | — | 35.4 | — | 37.3 | — | 37.3 | ||||||||||||||||||||||||
Total revenues | $ | 1,000.1 | $ | 237.3 | $ | 423.0 | $ | 1,660.4 | $ | 1,049.4 | $ | 236.4 | $ | 492.7 | $ | 1,778.5 | ||||||||||||||||
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Revenues: | ||||||||||||||||
Commissions | $ | 1,527.4 | $ | — | $ | — | $ | 1,527.4 | ||||||||
Fees | 473.6 | 396.7 | — | 870.3 | ||||||||||||
Supplemental revenues | 100.1 | — | — | 100.1 | ||||||||||||
Contingent revenues | 56.7 | — | — | 56.7 | ||||||||||||
Investment income | 28.9 | 0.3 | — | 29.2 | ||||||||||||
Net gains on divestitures | 9.0 | — | — | 9.0 | ||||||||||||
Revenues from clean coal activities | — | — | 834.6 | 834.6 | ||||||||||||
Other net revenues | — | — | 0.6 | 0.6 | ||||||||||||
Revenues before reimbursements | 2,195.7 | 397.0 | 835.2 | 3,427.9 | ||||||||||||
Reimbursements | — | 70.2 | — | 70.2 | ||||||||||||
Total revenues | $ | 2,195.7 | $ | 467.2 | $ | 835.2 | $ | 3,498.1 | ||||||||
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Revenues: | ||||||||||||||||
Commissions | $ | 2,235.0 | $ | — | $ | — | $ | 2,235.0 | ||||||||
Fees | 727.3 | 595.7 | — | 1,323.0 | ||||||||||||
Supplemental revenues | 144.0 | — | — | 144.0 | ||||||||||||
Contingent revenues | 82.4 | — | — | 82.4 | ||||||||||||
Investment income | 46.8 | 0.4 | — | 47.2 | ||||||||||||
Net gains on divestitures | 9.6 | — | — | 9.6 | ||||||||||||
Revenues from clean coal activities | — | — | 1,327.0 | 1,327.0 | ||||||||||||
Other net revenues | — | — | 0.9 | 0.9 | ||||||||||||
Revenues before reimbursements | 3,245.1 | 596.1 | 1,327.9 | 5,169.1 | ||||||||||||
Reimbursements | — | 107.5 | — | 107.5 | ||||||||||||
Total revenues | $ | 3,245.1 | $ | 703.6 | $ | 1,327.9 | $ | 5,276.6 | ||||||||
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 615.5 | $ | 197.3 | $ | 423.0 | $ | 1,235.8 | ||||||||
United Kingdom | 204.4 | 8.8 | — | 213.2 | ||||||||||||
Australia | 53.9 | 25.7 | — | 79.6 | ||||||||||||
Canada | 47.8 | 1.2 | — | 49.0 | ||||||||||||
New Zealand | 39.4 | 4.3 | — | 43.7 | ||||||||||||
Other foreign | 39.1 | — | — | 39.1 | ||||||||||||
Total revenues | $ | 1,000.1 | $ | 237.3 | $ | 423.0 | $ | 1,660.4 | ||||||||
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 724.2 | $ | 201.5 | $ | 492.7 | $ | 1,418.4 | ||||||||
United Kingdom | 169.3 | 8.7 | — | 178.0 | ||||||||||||
Australia | 49.1 | 21.1 | — | 70.2 | ||||||||||||
Canada | 40.3 | 0.9 | — | 41.2 | ||||||||||||
New Zealand | 35.0 | 4.2 | — | 39.2 | ||||||||||||
Other foreign | 31.5 | — | — | 31.5 | ||||||||||||
Total revenues | $ | 1,049.4 | $ | 236.4 | $ | 492.7 | $ | 1,778.5 | ||||||||
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 1,468.3 | $ | 390.1 | $ | 835.2 | $ | 2,693.6 | ||||||||
United Kingdom | 395.4 | 17.7 | — | 413.1 | ||||||||||||
Australia | 97.5 | 49.4 | — | 146.9 | ||||||||||||
Canada | 90.6 | 2.2 | — | 92.8 | ||||||||||||
New Zealand | 69.5 | 7.8 | — | 77.3 | ||||||||||||
Other foreign | 74.4 | — | — | 74.4 | ||||||||||||
Total revenues | $ | 2,195.7 | $ | 467.2 | $ | 835.2 | $ | 3,498.1 | ||||||||
Brokerage | Risk Management | Corporate | Total | |||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 2,192.5 | $ | 591.6 | $ | 1,327.9 | $ | 4,112.0 | ||||||||
United Kingdom | 564.6 | 26.5 | — | 591.1 | ||||||||||||
Australia | 146.6 | 70.5 | — | 217.1 | ||||||||||||
Canada | 130.9 | 3.0 | — | 133.9 | ||||||||||||
New Zealand | 104.5 | 12.0 | — | 116.5 | ||||||||||||
Other foreign | 106.0 | — | — | 106.0 | ||||||||||||
Total revenues | $ | 3,245.1 | $ | 703.6 | $ | 1,327.9 | $ | 5,276.6 | ||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
(Dollars in millions, except per share data) | 2nd Quarter 2019 | 2nd Quarter 2018 | Change | 3rd Quarter 2019 | 3rd Quarter 2018 | Change | ||||||||||||||||||||||||||||||||||||||||||
Reported | Adjusted | Reported | Adjusted | Reported | Adjusted | Reported | Adjusted | Reported | Adjusted | Reported | Adjusted | |||||||||||||||||||||||||||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | GAAP | Non-GAAP | GAAP | Non-GAAP | GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||||||||||||||||||||||||||
Brokerage Segment | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | $ | 1,129.3 | $ | $ | 978.0 | 13 | % | 15 | % | $ | 1,195.9 | $ | 1,192.6 | $ | 1,049.4 | $ | 1,035.3 | 14 | % | 15 | % | ||||||||||||||||||||||||||
Organic revenues | $ | 1,013.2 | $ | 957.5 | 5.8 | % | $ | 1,072.4 | $ | 1,014.1 | 5.8 | % | ||||||||||||||||||||||||||||||||||||
Net earnings | $ | 138.0 | $ | 127.5 | 8 | % | $ | 151.1 | $ | 122.2 | 24 | % | ||||||||||||||||||||||||||||||||||||
Net earnings margin | 12.2 | % | 12.8 | % | -55 bpts | 12.6 | % | 11.6 | % | +99 bpts | ||||||||||||||||||||||||||||||||||||||
Adjusted EBITDAC | $ | 298.0 | $ | 253.4 | 18 | % | $ | 324.3 | $ | 274.5 | 18 | % | ||||||||||||||||||||||||||||||||||||
Adjusted EBITDAC margin | 26.4 | % | 25.9 | % | +48 bpts | 27.2 | % | 26.5 | % | +68 bpts | ||||||||||||||||||||||||||||||||||||||
Diluted net earnings per share | $ | 0.70 | $ | 0.76 | $ | 0.68 | $ | 0.67 | 3 | % | 13 | % | $ | 0.77 | $ | 0.85 | $ | 0.65 | $ | 0.73 | 18 | % | 16 | % | ||||||||||||||||||||||||
Risk Management Segment | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues before reimbursements | $ | 209.1 | $ | 209.1 | $ | 201.9 | $ | 199.2 | 4 | % | 5 | % | $ | 211.6 | $ | 211.6 | $ | 199.1 | $ | 196.9 | 6 | % | 7 | % | ||||||||||||||||||||||||
Organic revenues | $ | 205.1 | $ | 199.1 | 3.0 | % | $ | 208.1 | $ | 196.8 | 5.7 | % | ||||||||||||||||||||||||||||||||||||
Net earnings | $ | 15.5 | $ | 17.6 | -12 | % | $ | 16.2 | $ | 16.5 | -2 | % | ||||||||||||||||||||||||||||||||||||
Net earnings margin (before reimbursements) | 7.4 | % | 8.7 | % | -131 bpts | 7.7 | % | 8.3 | % | -63 bpts | ||||||||||||||||||||||||||||||||||||||
Adjusted EBITDAC | $ | 36.6 | $ | 35.1 | 4 | % | $ | 38.0 | $ | 35.3 | 8 | % | ||||||||||||||||||||||||||||||||||||
Adjusted EBITDAC margin (before reimbursements) | 17.5 | % | 17.6 | % | -12 bpt | 18.0 | % | 17.9 | % | +3 bpts | ||||||||||||||||||||||||||||||||||||||
Diluted net earnings per share | $ | 0.08 | $ | 0.09 | $ | 0.09 | $ | 0.10 | -11 | % | -10 | % | $ | 0.09 | $ | 0.10 | $ | 0.09 | $ | 0.10 | - | % | - | % | ||||||||||||||||||||||||
Corporate Segment | ||||||||||||||||||||||||||||||||||||||||||||||||
Diluted net earnings per share | $ | (0.20 | ) | $ | (0.20 | ) | $ | (0.15 | ) | $ | (0.15 | ) | ||||||||||||||||||||||||||||||||||||
Diluted net loss per share | $ | (0.20 | ) | $ | (0.15 | ) | $ | (0.06 | ) | $ | (0.06 | ) | ||||||||||||||||||||||||||||||||||||
Total Company | ||||||||||||||||||||||||||||||||||||||||||||||||
Diluted net earnings per share | $ | 0.58 | $ | 0.65 | $ | 0.62 | $ | 0.62 | -6 | % | 5 | % | $ | 0.66 | $ | 0.80 | $ | 0.68 | $ | 0.77 | -3 | % | 4 | % | ||||||||||||||||||||||||
Total Brokerage and Risk Management Segment | ||||||||||||||||||||||||||||||||||||||||||||||||
Diluted net earnings per share | $ | 0.78 | $ | 0.85 | $ | 0.77 | $ | 0.77 | 1 | % | 10 | % | $ | 0.86 | $ | 0.95 | $ | 0.74 | $ | 0.83 | 16 | % | 14 | % |
(Dollars in millions, except per share data) | Nine Months 2019 | Nine Months 2018 | Change | |||||||||||||||||||||
Reported | Adjusted | Reported | Adjusted | Reported | Adjusted | |||||||||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||||||||
Brokerage Segment | ||||||||||||||||||||||||
Revenues | $ | 3,709.0 | $ | 3,646.7 | $ | 3,245.1 | $ | 3,185.0 | 14 | % | 15 | % | ||||||||||||
Organic revenues | $ | 3,302.9 | $ | 3,123.4 | 5.8 | % | ||||||||||||||||||
Net earnings | $ | 598.6 | $ | 488.9 | 22 | % | ||||||||||||||||||
Net earnings margin | 16.1 | % | 15.1 | % | +107 bpts | |||||||||||||||||||
Adjusted EBITDAC | $ | 1,094.2 | $ | 938.1 | 17 | % | ||||||||||||||||||
Adjusted EBITDAC margin | 30.0 | % | 29.5 | % | +56 bpts | |||||||||||||||||||
Diluted net earnings per share | $ | 3.06 | $ | 3.05 | $ | 2.58 | $ | 2.70 | 19 | % | 13 | % | ||||||||||||
Risk Management Segment | ||||||||||||||||||||||||
Revenues before reimbursements | $ | 624.0 | $ | 624.0 | $ | 596.1 | $ | 588.0 | 5 | % | 6 | % | ||||||||||||
Organic revenues | $ | 612.7 | $ | 587.6 | 4.3 | % | ||||||||||||||||||
Net earnings | $ | 47.9 | $ | 50.0 | -4 | % | ||||||||||||||||||
Net earnings margin (before reimbursements) | 7.7 | % | 8.4 | % | -71 bpts | |||||||||||||||||||
Adjusted EBITDAC | $ | 109.1 | $ | 101.8 | 7 | % | ||||||||||||||||||
Adjusted EBITDAC margin (before reimbursements) | 17.5 | % | 17.3 | % | +17 bpts | |||||||||||||||||||
Diluted net earnings per share | $ | 0.25 | $ | 0.28 | $ | 0.27 | $ | 0.27 | -7 | % | 4 | % | ||||||||||||
Corporate Segment | ||||||||||||||||||||||||
Diluted net loss per share | $ | (0.30 | ) | $ | (0.26 | ) | $ | (0.07 | ) | $ | (0.07 | ) | ||||||||||||
Total Company | ||||||||||||||||||||||||
Diluted net earnings per share | $ | 3.01 | $ | 3.07 | $ | 2.78 | $ | 2.90 | 8 | % | 6 | % | ||||||||||||
Total Brokerage and Risk Management Segment | ||||||||||||||||||||||||
Diluted net earnings per share | $ | 3.31 | $ | 3.33 | $ | 2.85 | $ | 2.97 | 16 | % | 12 | % |
(Dollars in millions, except per share data) | Six Months 2019 | Six Months 2018 | Change | |||||||||||||||||||||
Reported | Adjusted | Reported | Adjusted | Reported | Adjusted | |||||||||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||||||||
Brokerage Segment | ||||||||||||||||||||||||
Revenues | $ | $ | 2,454.1 | $ | $ | 2,149.7 | 14 | % | 14 | % | ||||||||||||||
Organic revenues | $ | 2,230.5 | $ | 2,109.3 | 5.8 | % | ||||||||||||||||||
Net earnings | $ | 447.5 | $ | 366.7 | 22 | % | ||||||||||||||||||
Net earnings margin | 17.8 | % | 16.7 | % | +111 bpts | |||||||||||||||||||
Adjusted EBITDAC | $ | 769.9 | $ | 663.6 | 16 | % | ||||||||||||||||||
Adjusted EBITDAC margin | 31.4 | % | 30.9 | % | +50 bpts | |||||||||||||||||||
Diluted net earnings per share | $ | 2.29 | $ | 2.20 | $ | 1.94 | $ | 1.96 | 18 | % | 12 | % | ||||||||||||
Risk Management Segment | ||||||||||||||||||||||||
Revenues before reimbursements | $ | 412.4 | $ | 412.4 | $ | 397.0 | $ | 391.1 | 4 | % | 5 | % | ||||||||||||
Organic revenues | $ | 404.6 | $ | 390.8 | 3.5 | % | ||||||||||||||||||
Net earnings | $ | 31.7 | $ | 33.5 | -5 | % | ||||||||||||||||||
Net earnings margin (before reimbursements) | 7.7 | % | 8.4 | % | -75 bpts | |||||||||||||||||||
Adjusted EBITDAC | $ | 71.1 | $ | 66.5 | 7 | % | ||||||||||||||||||
Adjusted EBITDAC margin (before reimbursements) | 17.2 | % | 17.0 | % | +24 bpt | |||||||||||||||||||
Diluted net earnings per share | $ | 0.17 | $ | 0.18 | $ | 0.18 | $ | 0.18 | -6 | % | - | % | ||||||||||||
Corporate Segment | ||||||||||||||||||||||||
Diluted net earnings per share | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.02 | ) | $ | (0.02 | ) | ||||||||||||
Total Company | ||||||||||||||||||||||||
Diluted net earnings per share | $ | 2.35 | $ | 2.27 | $ | 2.10 | $ | 2.12 | 12 | % | 7 | % | ||||||||||||
Total Brokerage and Risk Management Segment | ||||||||||||||||||||||||
Diluted net earnings per share | $ | 2.46 | $ | 2.38 | $ | 2.12 | $ | 2.14 | 16 | % | 11 | % |
Revenues Before | Diluted Net | ||||||||||||||||||||||||||||||||||||
Reimbursements | Net Earnings | EBITDAC | Earnings Per Share | ||||||||||||||||||||||||||||||||||
Segment | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | Chg | ||||||||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | |||||||||||||||||||||||||||||||||||
Brokerage, as reported | $ | 1,131.2 | $ | 1,000.1 | $ | 138.0 | $ | 127.5 | $ | 280.9 | $ | 251.1 | $ | 0.70 | $ | 0.68 | 3 | % | |||||||||||||||||||
Net gains on divestitures | (1.9 | ) | (6.1 | ) | (1.4 | ) | (4.7 | ) | (1.9 | ) | (6.1 | ) | (0.01 | ) | (0.02 | ) | |||||||||||||||||||||
Acquisition integration | — | — | 2.5 | — | 3.4 | — | 0.01 | — | |||||||||||||||||||||||||||||
Workforce & lease termination | — | — | 7.2 | 2.7 | 9.5 | 3.5 | 0.04 | 0.01 | |||||||||||||||||||||||||||||
Acquisition related adjustments | — | — | 3.0 | 0.4 | 6.1 | 5.8 | 0.02 | — | |||||||||||||||||||||||||||||
Levelized foreign currency translation | — | (16.0 | ) | — | 0.6 | — | (0.9 | ) | — | — | |||||||||||||||||||||||||||
Brokerage, as adjusted * | 1,129.3 | 978.0 | 149.3 | 126.5 | 298.0 | 253.4 | 0.76 | 0.67 | 13 | % | |||||||||||||||||||||||||||
Risk Management, as reported | 209.1 | 201.9 | 15.5 | 17.6 | 33.8 | 34.7 | 0.08 | 0.09 | -11 | % | |||||||||||||||||||||||||||
Workforce & lease termination | — | — | 2.1 | 0.8 | 2.8 | 1.1 | 0.01 | 0.01 | |||||||||||||||||||||||||||||
Acquisition related adjustments | — | — | (0.2 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||
Levelized foreign currency translation | — | (2.7 | ) | — | (0.4 | ) | — | (0.7 | ) | — | — | ||||||||||||||||||||||||||
Risk Management, as adjusted * | 209.1 | 199.2 | 17.4 | 18.0 | 36.6 | 35.1 | 0.09 | 0.10 | -10 | % | |||||||||||||||||||||||||||
Corporate, as reported | 284.5 | 423.0 | (32.1 | ) | (21.4 | ) | (45.9 | ) | (50.1 | ) | (0.20 | ) | (0.15 | ) | |||||||||||||||||||||||
Total Company, as reported | $ | 1,624.8 | $ | 1,625.0 | $ | 121.4 | $ | 123.7 | $ | 268.8 | $ | 235.7 | $ | 0.58 | $ | 0.62 | -6 | % | |||||||||||||||||||
Total Company, as adjusted * | $ | 1,622.9 | $ | 1,600.2 | $ | 134.6 | $ | 123.1 | $ | 288.7 | $ | 238.4 | $ | 0.65 | $ | 0.62 | 5 | % | |||||||||||||||||||
Total Brokerage & Risk | |||||||||||||||||||||||||||||||||||||
Management, as reported | $ | 1,340.3 | $ | 1,202.0 | $ | 153.5 | $ | 145.1 | $ | 314.7 | $ | 285.8 | $ | 0.78 | $ | 0.77 | 1 | % | |||||||||||||||||||
Total Brokerage & Risk | |||||||||||||||||||||||||||||||||||||
Management, as adjusted * | $ | 1,338.4 | $ | 1,177.2 | $ | 166.7 | $ | 144.5 | $ | 334.6 | $ | 288.5 | $ | 0.85 | $ | 0.77 | 10 | % | |||||||||||||||||||
For the Three-Month Periods Ended September 30 Reported GAAP to Adjusted Non-GAAP Reconciliation: |
Revenues Before | Diluted Net | |||||||||||||||||||||||||||||||||||
Reimbursements | Net Earnings | EBITDAC | Earnings Per Share | |||||||||||||||||||||||||||||||||
Segment | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | Chg | |||||||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | ||||||||||||||||||||||||||||||||||
Brokerage, as reported | $ | 1,195.9 | $ | 1,049.4 | $ | 151.1 | $ | 122.2 | $ | 304.6 | $ | 256.8 | $ | 0.77 | $ | 0.65 | 18 | % | ||||||||||||||||||
Net gains on divestitures | (3.3 | ) | (0.6 | ) | (2.7 | ) | (0.5 | ) | (3.3 | ) | (0.6 | ) | (0.01 | ) | — | |||||||||||||||||||||
Acquisition integration | — | — | 5.8 | 1.7 | 7.1 | 2.2 | 0.03 | 0.01 | ||||||||||||||||||||||||||||
Workforce & lease termination | — | — | 10.9 | 11.7 | 13.4 | 15.6 | 0.06 | 0.06 | ||||||||||||||||||||||||||||
Acquisition related adjustments | — | — | 0.8 | 4.3 | 2.5 | 3.3 | — | 0.02 | ||||||||||||||||||||||||||||
Levelized foreign currency translation | — | (13.5 | ) | — | (1.1 | ) | — | (2.8 | ) | — | (0.01 | ) | ||||||||||||||||||||||||
Brokerage, as adjusted * | 1,192.6 | 1,035.3 | 165.9 | 138.3 | 324.3 | 274.5 | 0.85 | 0.73 | 16 | % | ||||||||||||||||||||||||||
Risk Management, as reported | 211.6 | 199.1 | 16.2 | 16.5 | 35.0 | 33.6 | 0.09 | 0.09 | - | % | ||||||||||||||||||||||||||
Workforce & lease termination | — | — | 2.1 | 1.7 | 3.0 | 2.3 | 0.01 | 0.01 | ||||||||||||||||||||||||||||
Acquisition related adjustments | — | — | 0.1 | — | — | — | — | — | ||||||||||||||||||||||||||||
Levelized foreign currency translation | — | (2.2 | ) | — | (0.4 | ) | — | (0.6 | ) | — | — | |||||||||||||||||||||||||
Risk Management, as adjusted * | 211.6 | 196.9 | 18.4 | 17.8 | 38.0 | 35.3 | 0.10 | 0.10 | - | % | ||||||||||||||||||||||||||
Corporate, as reported | 383.0 | 492.7 | (30.2 | ) | (0.3 | ) | (53.2 | ) | (51.4 | ) | (0.20 | ) | (0.06 | ) | ||||||||||||||||||||||
Clean energy related | 3.0 | — | 11.7 | — | 14.9 | — | 0.05 | — | ||||||||||||||||||||||||||||
Corporate, as adjusted * | 386.0 | 492.7 | (18.5 | ) | (0.3 | ) | (38.3 | ) | (51.4 | ) | (0.15 | ) | (0.06 | ) | ||||||||||||||||||||||
Total Company, as reported | $ | 1,790.5 | $ | 1,741.2 | $ | 137.1 | $ | 138.4 | $ | 286.4 | $ | 239.0 | $ | 0.66 | $ | 0.68 | -3 | % | ||||||||||||||||||
Total Company, as adjusted * | $ | 1,790.2 | $ | 1,724.9 | $ | 165.8 | $ | 155.8 | $ | 324.0 | $ | 258.4 | $ | 0.80 | $ | 0.77 | 4 | % | ||||||||||||||||||
Total Brokerage & Risk | ||||||||||||||||||||||||||||||||||||
Management, as reported | $ | 1,407.5 | $ | 1,248.5 | $ | 167.3 | $ | 138.7 | $ | 339.6 | $ | 290.4 | $ | 0.86 | $ | 0.74 | 16 | % | ||||||||||||||||||
Total Brokerage & Risk | ||||||||||||||||||||||||||||||||||||
Management, as adjusted * | $ | 1,404.2 | $ | 1,232.2 | $ | 184.3 | $ | 156.1 | $ | 362.3 | $ | 309.8 | $ | 0.95 | $ | 0.83 | 14 | % | ||||||||||||||||||
* | For the three-month period ended |
For the Nine-Month Periods Ended September 30 Reported GAAP to Adjusted Non-GAAP Reconciliation: |
Revenues Before | Diluted Net | ||||||||||||||||||||||||||||||||||||
Reimbursements | Net Earnings | EBITDAC | Earnings Per Share | ||||||||||||||||||||||||||||||||||
Segment | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | Chg | ||||||||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | |||||||||||||||||||||||||||||||||||
Brokerage, as reported | $ | 2,513.1 | $ | 2,195.7 | $ | 447.5 | $ | 366.7 | $ | 787.6 | $ | 658.9 | $ | 2.29 | $ | 1.94 | 18 | % | |||||||||||||||||||
Net gains on divestitures | (59.0 | ) | (9.0 | ) | (34.5 | ) | (6.9 | ) | (46.0 | ) | (9.0 | ) | (0.18 | ) | (0.04 | ) | |||||||||||||||||||||
Acquisition integration | — | — | 2.8 | — | 3.8 | — | 0.01 | — | |||||||||||||||||||||||||||||
Workforce & lease termination | — | — | 11.9 | 8.4 | 15.8 | 11.1 | 0.06 | 0.05 | |||||||||||||||||||||||||||||
Acquisition related adjustments | — | — | 2.9 | 4.3 | 8.7 | 8.5 | 0.02 | 0.02 | |||||||||||||||||||||||||||||
Levelized foreign currency translation | — | (37.0 | ) | — | (1.6 | ) | — | (5.9 | ) | — | (0.01 | ) | |||||||||||||||||||||||||
Brokerage, as adjusted * | 2,454.1 | 2,149.7 | 430.6 | 370.9 | 769.9 | 663.6 | 2.20 | 1.96 | 12 | % | |||||||||||||||||||||||||||
Risk Management, as reported | 412.4 | 397.0 | 31.7 | 33.5 | 67.9 | 66.6 | 0.17 | 0.18 | 6 | % | |||||||||||||||||||||||||||
Workforce & lease termination | — | — | 2.4 | 1.0 | 3.2 | 1.3 | 0.01 | 0.01 | |||||||||||||||||||||||||||||
Acquisition related adjustments | — | — | (0.2 | ) | (0.1 | ) | — | — | — | — | |||||||||||||||||||||||||||
Levelized foreign currency translation | — | (5.9 | ) | — | (0.9 | ) | — | (1.4 | ) | — | (0.01 | ) | |||||||||||||||||||||||||
Risk Management, as adjusted * | 412.4 | 391.1 | 33.9 | 33.5 | 71.1 | 66.5 | 0.18 | 0.18 | - | % | |||||||||||||||||||||||||||
Corporate, as reported | 656.8 | 835.2 | (6.1 | ) | 9.5 | (111.3 | ) | (110.0 | ) | (0.11 | ) | (0.02 | ) | ||||||||||||||||||||||||
Total Company, as reported | $ | 3,582.3 | $ | 3,427.9 | $ | 473.1 | $ | 409.7 | $ | 744.2 | $ | 615.5 | $ | 2.35 | $ | 2.10 | 12 | % | |||||||||||||||||||
Total Company, as adjusted * | $ | 3,523.3 | $ | 3,376.0 | $ | 458.4 | $ | 413.9 | $ | 729.7 | $ | 620.1 | $ | 2.27 | $ | 2.12 | 7 | % | |||||||||||||||||||
Total Brokerage & Risk | |||||||||||||||||||||||||||||||||||||
Management, as reported | $ | 2,925.5 | $ | 2,592.7 | $ | 479.2 | $ | 400.2 | $ | 855.5 | $ | 725.5 | $ | 2.46 | $ | 2.12 | 16 | % | |||||||||||||||||||
Total Brokerage & Risk | |||||||||||||||||||||||||||||||||||||
Management, as adjusted * | $ | 2,866.5 | $ | 2,540.8 | $ | 464.5 | $ | 404.4 | $ | 841.0 | $ | 730.1 | $ | 2.38 | $ | 2.14 | 11 | % | |||||||||||||||||||
Revenues Before | Diluted Net | |||||||||||||||||||||||||||||||||||
Reimbursements | Net Earnings | EBITDAC | Earnings Per Share | |||||||||||||||||||||||||||||||||
Segment | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | Chg | |||||||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | ||||||||||||||||||||||||||||||||||
Brokerage, as reported | $ | 3,709.0 | $ | 3,245.1 | $ | 598.6 | $ | 488.9 | $ | 1,092.2 | $ | 915.7 | $ | 3.06 | $ | 2.58 | 19 | % | ||||||||||||||||||
Net gains on divestitures | (62.3 | ) | (9.6 | ) | (37.2 | ) | (7.4 | ) | (49.3 | ) | (9.6 | ) | (0.20 | ) | (0.04 | ) | ||||||||||||||||||||
Acquisition integration | — | — | 8.6 | 1.7 | 10.9 | 2.2 | 0.05 | 0.01 | ||||||||||||||||||||||||||||
Workforce & lease termination | — | — | 22.8 | 20.1 | 29.2 | 26.7 | 0.12 | 0.11 | ||||||||||||||||||||||||||||
Acquisition related adjustments | — | — | 3.7 | 8.6 | 11.2 | 11.8 | 0.02 | 0.05 | ||||||||||||||||||||||||||||
Levelized foreign currency translation | — | (50.5 | ) | — | (2.7 | ) | — | (8.7 | ) | — | (0.01 | ) | ||||||||||||||||||||||||
Brokerage, as adjusted * | 3,646.7 | 3,185.0 | 596.5 | 509.2 | 1,094.2 | 938.1 | 3.05 | 2.70 | 13 | % | ||||||||||||||||||||||||||
Risk Management, as reported | 624.0 | 596.1 | 47.9 | 50.0 | 102.9 | 100.2 | 0.25 | 0.27 | -7 | % | ||||||||||||||||||||||||||
Workforce & lease termination | — | — | 4.5 | 2.7 | 6.2 | 3.6 | 0.03 | 0.01 | ||||||||||||||||||||||||||||
Acquisition related adjustments | — | — | (0.1 | ) | (0.1 | ) | — | — | — | — | ||||||||||||||||||||||||||
Levelized foreign currency translation | — | (8.1 | ) | — | (1.3 | ) | — | (2.0 | ) | — | (0.01 | ) | ||||||||||||||||||||||||
Risk Management, as adjusted * | 624.0 | 588.0 | 52.3 | 51.3 | 109.1 | 101.8 | 0.28 | 0.27 | 4 | % | ||||||||||||||||||||||||||
Corporate, as reported | 1,039.8 | 1,327.9 | (36.3 | ) | 9.2 | (164.5 | ) | (161.4 | ) | (0.30 | ) | (0.07 | ) | |||||||||||||||||||||||
Clean energy related | 3.0 | — | 11.7 | — | 14.9 | — | 0.04 | — | ||||||||||||||||||||||||||||
Corporate, as adjusted * | 1,042.8 | 1,327.9 | (24.6 | ) | 9.2 | (149.6 | ) | (161.4 | ) | (0.26 | ) | (0.07 | ) | |||||||||||||||||||||||
Total Company, as reported | $ | 5,372.8 | $ | 5,169.1 | $ | 610.2 | $ | 548.1 | $ | 1,030.6 | $ | 854.5 | $ | 3.01 | $ | 2.78 | 8 | % | ||||||||||||||||||
Total Company, as adjusted * | $ | 5,313.5 | $ | 5,100.9 | $ | 624.2 | $ | 569.7 | $ | 1,053.7 | $ | 878.5 | $ | 3.07 | $ | 2.90 | 6 | % | ||||||||||||||||||
Total Brokerage & Risk | ||||||||||||||||||||||||||||||||||||
Management, as reported | $ | 4,333.0 | $ | 3,841.2 | $ | 646.5 | $ | 538.9 | $ | 1,195.1 | $ | 1,015.9 | $ | 3.31 | $ | 2.85 | 16 | % | ||||||||||||||||||
Total Brokerage & Risk | ||||||||||||||||||||||||||||||||||||
Management, as adjusted * | $ | 4,270.7 | $ | 3,773.0 | $ | 648.8 | $ | 560.5 | $ | 1,203.3 | $ | 1,039.9 | $ | 3.33 | $ | 2.97 | 12 | % | ||||||||||||||||||
* | For the |
(In millions except share and per share data) | (In millions except share and per share data) | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings Before Income Taxes | Provision for Income Taxes | Net Earnings | Net Earnings Attributable to Noncontrolling Interests | Net Earnings Attributable to Controlling Interests | Diluted Net Earnings per Share | Net Earnings | Net Earnings | |||||||||||||||||||||||||||||||||||||||||
Quarter Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Earnings | Provision | Attributable to | Attributable to | Diluted Net | ||||||||||||||||||||||||||||||||||||||||||||
Before Income | for Income | Net | Noncontrolling | Controlling | Earnings | |||||||||||||||||||||||||||||||||||||||||||
Taxes | Taxes | Earnings | Interests | Interests | per Share | |||||||||||||||||||||||||||||||||||||||||||
Quarter Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Brokerage, as reported | $ | 182.3 | $ | 44.3 | $ | 138.0 | $ | 5.1 | $ | 132.9 | $ | 0.70 | $ | 199.9 | $ | 48.8 | $ | 151.1 | $ | 3.4 | $ | 147.7 | $ | 0.77 | ||||||||||||||||||||||||
Net gains on divestitures | (1.9 | ) | (0.5 | ) | (1.4 | ) | — | (1.4 | ) | (0.01 | ) | (3.3 | ) | (0.6 | ) | (2.7 | ) | — | (2.7 | ) | (0.01 | ) | ||||||||||||||||||||||||||
Acquisition integration | 3.4 | 0.9 | 2.5 | — | 2.5 | 0.01 | 7.1 | 1.3 | 5.8 | — | 5.8 | 0.03 | ||||||||||||||||||||||||||||||||||||
Workforce & lease termination | 9.5 | 2.3 | 7.2 | — | 7.2 | 0.04 | 13.4 | 2.5 | 10.9 | — | 10.9 | 0.06 | ||||||||||||||||||||||||||||||||||||
Acquisition related adjustments | 4.0 | 1.0 | 3.0 | — | 3.0 | 0.02 | 1.0 | 0.2 | 0.8 | — | 0.8 | — | ||||||||||||||||||||||||||||||||||||
Brokerage, as adjusted | $ | 197.3 | $ | 48.0 | $ | 149.3 | $ | 5.1 | $ | 144.2 | $ | 0.76 | $ | 218.1 | $ | 52.2 | $ | 165.9 | $ | 3.4 | $ | 162.5 | $ | 0.85 | ||||||||||||||||||||||||
Risk Management, as reported | $ | 21.0 | $ | 5.5 | $ | 15.5 | $ | — | $ | 15.5 | $ | 0.08 | $ | 21.7 | $ | 5.5 | $ | 16.2 | $ | — | $ | 16.2 | $ | 0.09 | ||||||||||||||||||||||||
Workforce & lease termination | 2.8 | 0.7 | 2.1 | — | 2.1 | 0.01 | 3.0 | 0.9 | 2.1 | — | 2.1 | 0.01 | ||||||||||||||||||||||||||||||||||||
Acquisition related adjustments | (0.3 | ) | (0.1 | ) | (0.2 | ) | — | (0.2 | ) | — | 0.1 | — | 0.1 | — | 0.1 | — | ||||||||||||||||||||||||||||||||
Risk Management, as adjusted | $ | 23.5 | $ | 6.1 | $ | 17.4 | $ | — | $ | 17.4 | $ | 0.09 | $ | 24.8 | $ | 6.4 | $ | 18.4 | $ | — | $ | 18.4 | $ | 0.10 | ||||||||||||||||||||||||
Quarter Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Corporate, as reported | $ | (106.8 | ) | $ | (76.6 | ) | $ | (30.2 | ) | $ | 7.6 | $ | (37.8 | ) | $ | (0.20 | ) | |||||||||||||||||||||||||||||||
Clean energy related | 14.9 | 3.2 | 11.7 | 2.5 | 9.2 | 0.05 | ||||||||||||||||||||||||||||||||||||||||||
Corporate, as adjusted | $ | (91.9 | ) | $ | (73.4 | ) | $ | (18.5 | ) | $ | 10.1 | $ | (28.6 | ) | $ | (0.15 | ) | |||||||||||||||||||||||||||||||
Quarter Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Brokerage, as reported | $ | 170.6 | $ | 43.1 | $ | 127.5 | $ | 2.1 | $ | 125.4 | $ | 0.68 | $ | 163.2 | $ | 41.0 | $ | 122.2 | $ | 1.6 | $ | 120.6 | $ | 0.65 | ||||||||||||||||||||||||
Net gains on divestitures | (6.1 | ) | (1.4 | ) | (4.7 | ) | — | (4.7 | ) | (0.02 | ) | (0.6 | ) | (0.1 | ) | (0.5 | ) | — | (0.5 | ) | — | |||||||||||||||||||||||||||
Acquisition integration | 2.2 | 0.5 | 1.7 | — | 1.7 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
Workforce & lease termination | 3.5 | 0.8 | 2.7 | — | 2.7 | 0.01 | 15.6 | 3.9 | 11.7 | — | 11.7 | 0.06 | ||||||||||||||||||||||||||||||||||||
Acquisition related adjustments | 0.5 | 0.1 | 0.4 | — | 0.4 | — | 5.7 | 1.4 | 4.3 | — | 4.3 | 0.02 | ||||||||||||||||||||||||||||||||||||
Levelized foreign currency translation | 0.8 | 0.2 | 0.6 | — | 0.6 | — | (1.4 | ) | (0.3 | ) | (1.1 | ) | — | (1.1 | ) | (0.01 | ) | |||||||||||||||||||||||||||||||
Brokerage, as adjusted | $ | 169.3 | $ | 42.8 | $ | 126.5 | $ | 2.1 | $ | 124.4 | $ | 0.67 | $ | 184.7 | $ | 46.4 | $ | 138.3 | $ | 1.6 | $ | 136.7 | $ | 0.73 | ||||||||||||||||||||||||
Risk Management, as reported | $ | 24.0 | $ | 6.4 | $ | 17.6 | $ | — | $ | 17.6 | $ | 0.09 | $ | 22.3 | $ | 5.8 | $ | 16.5 | $ | — | $ | 16.5 | $ | 0.09 | ||||||||||||||||||||||||
Workforce & lease termination | 1.1 | 0.3 | 0.8 | — | 0.8 | 0.01 | 2.3 | 0.6 | 1.7 | — | 1.7 | 0.01 | ||||||||||||||||||||||||||||||||||||
Levelized foreign currency translation | (0.5 | ) | (0.1 | ) | (0.4 | ) | — | (0.4 | ) | — | (0.5 | ) | (0.1 | ) | (0.4 | ) | — | (0.4 | ) | — | ||||||||||||||||||||||||||||
Risk Management, as adjusted | $ | 24.6 | $ | 6.6 | $ | 18.0 | $ | — | $ | 18.0 | $ | 0.10 | $ | 24.1 | $ | 6.3 | $ | 17.8 | $ | — | $ | 17.8 | $ | 0.10 | ||||||||||||||||||||||||
(In millions except share and per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Before Income Taxes | Provision for Income Taxes | Net Earnings | Net Earnings Attributable to Noncontrolling Interests | Net Earnings Attributable to Controlling Interests | Diluted Net Earnings per Share | Net Earnings | Net Earnings | |||||||||||||||||||||||||||||||||||||||||
Six-Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Earnings | Provision | Attributable to | Attributable to | Diluted Net | ||||||||||||||||||||||||||||||||||||||||||||
Before Income | for Income | Net | Noncontrolling | Controlling | Earnings | |||||||||||||||||||||||||||||||||||||||||||
Taxes | Taxes | Earnings | Interests | Interests | per Share | |||||||||||||||||||||||||||||||||||||||||||
Nine-Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Brokerage, as reported | $ | 594.7 | $ | 147.2 | $ | 447.5 | $ | 14.9 | $ | 432.6 | $ | 2.29 | $ | 794.6 | $ | 196.0 | $ | 598.6 | $ | 18.3 | $ | 580.3 | $ | 3.06 | ||||||||||||||||||||||||
Net gains on divestitures | (46.0 | ) | (11.5 | ) | (34.5 | ) | — | (34.5 | ) | (0.18 | ) | (49.3 | ) | (12.1 | ) | (37.2 | ) | — | (37.2 | ) | (0.20 | ) | ||||||||||||||||||||||||||
Acquisition integration | 3.8 | 1.0 | 2.8 | — | 2.8 | 0.01 | 10.9 | 2.3 | 8.6 | — | 8.6 | 0.05 | ||||||||||||||||||||||||||||||||||||
Workforce & lease termination | 15.8 | 3.9 | 11.9 | — | 11.9 | 0.06 | 29.2 | 6.4 | 22.8 | — | 22.8 | 0.12 | ||||||||||||||||||||||||||||||||||||
Acquisition related adjustments | 3.9 | 1.0 | 2.9 | — | 2.9 | 0.02 | 4.9 | 1.2 | 3.7 | — | 3.7 | 0.02 | ||||||||||||||||||||||||||||||||||||
Brokerage, as adjusted | $ | 572.2 | $ | 141.6 | $ | 430.6 | $ | 14.9 | $ | 415.7 | $ | 2.20 | $ | 790.3 | $ | 193.8 | $ | 596.5 | $ | 18.3 | $ | 578.2 | $ | 3.05 | ||||||||||||||||||||||||
Risk Management, as reported | $ | 43.0 | $ | 11.3 | $ | 31.7 | $ | — | $ | 31.7 | $ | 0.17 | $ | 64.7 | $ | 16.8 | $ | 47.9 | $ | — | $ | 47.9 | $ | 0.25 | ||||||||||||||||||||||||
Workforce & lease termination | 3.2 | 0.8 | 2.4 | — | 2.4 | 0.01 | 6.2 | 1.7 | 4.5 | — | 4.5 | 0.03 | ||||||||||||||||||||||||||||||||||||
Acquisition related adjustments | (0.3 | ) | (0.1 | ) | (0.2 | ) | — | (0.2 | ) | — | (0.2 | ) | (0.1 | ) | (0.1 | ) | — | (0.1 | ) | — | ||||||||||||||||||||||||||||
Risk Management, as adjusted | $ | 45.9 | $ | 12.0 | $ | 33.9 | $ | — | $ | 33.9 | $ | 0.18 | $ | 70.7 | $ | 18.4 | $ | 52.3 | $ | — | $ | 52.3 | $ | 0.28 | ||||||||||||||||||||||||
Six-Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Corporate, as reported | $ | (317.2) | $ | (280.9 | ) | $ | (36.3 | ) | $ | 21.6 | $ | (57.9 | ) | $ | (0.30 | ) | ||||||||||||||||||||||||||||||||
Clean energy related | 14.9 | 3.2 | 11.7 | 2.5 | 9.2 | 0.04 | ||||||||||||||||||||||||||||||||||||||||||
Corporate, as adjusted | $ | (302.8 | ) | $ | (277.7 | ) | $ | (24.6 | ) | $ | 24.1 | $ | (48.7 | ) | $ | (0.26 | ) | |||||||||||||||||||||||||||||||
Nine-Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Brokerage, as reported | $ | 489.5 | $ | 122.8 | $ | 366.7 | $ | 7.1 | $ | 359.6 | $ | 1.94 | $ | 652.7 | $ | 163.8 | $ | 488.9 | $ | 8.7 | $ | 480.2 | $ | 2.58 | ||||||||||||||||||||||||
Net gains on divestitures | (9.0 | ) | (2.1 | ) | (6.9 | ) | — | (6.9 | ) | (0.04 | ) | (9.6 | ) | (2.2 | ) | (7.4 | ) | — | (7.4 | ) | (0.04 | ) | ||||||||||||||||||||||||||
Acquisition integration | 2.2 | 0.5 | 1.7 | — | 1.7 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
Workforce & lease termination | 11.1 | 2.7 | 8.4 | — | 8.4 | 0.05 | 26.7 | 6.6 | 20.1 | — | 20.1 | 0.11 | ||||||||||||||||||||||||||||||||||||
Acquisition related adjustments | 5.6 | 1.3 | 4.3 | — | 4.3 | 0.02 | 11.3 | 2.7 | 8.6 | — | 8.6 | 0.05 | ||||||||||||||||||||||||||||||||||||
Levelized foreign currency translation | (2.1 | ) | (0.5 | ) | (1.6 | ) | — | (1.6 | ) | (0.01 | ) | (3.5 | ) | (0.8 | ) | (2.7 | ) | — | (2.7 | ) | (0.01 | ) | ||||||||||||||||||||||||||
Brokerage, as adjusted | $ | 495.1 | $ | 124.2 | $ | 370.9 | $ | 7.1 | $ | 363.8 | $ | 1.96 | $ | 679.8 | $ | 170.6 | $ | 509.2 | $ | 8.7 | $ | 500.5 | $ | 2.70 | ||||||||||||||||||||||||
Risk Management, as reported | $ | 45.6 | $ | 12.1 | $ | 33.5 | $ | — | $ | 33.5 | $ | 0.18 | $ | 67.9 | $ | 17.9 | $ | 50.0 | $ | — | $ | 50.0 | $ | 0.27 | ||||||||||||||||||||||||
Workforce & lease termination | 1.3 | 0.3 | 1.0 | — | 1.0 | 0.01 | 3.6 | 0.9 | 2.7 | — | 2.7 | 0.01 | ||||||||||||||||||||||||||||||||||||
Acquisition related adjustments | (0.1 | ) | — | (0.1 | ) | — | (0.1 | ) | — | (0.1 | ) | — | (0.1 | ) | — | (0.1 | ) | — | ||||||||||||||||||||||||||||||
Levelized foreign currency translation | (1.2 | ) | (0.3 | ) | (0.9 | ) | — | (0.9 | ) | (0.01 | ) | (1.7 | ) | (0.4 | ) | (1.3 | ) | — | (1.3 | ) | (0.01 | ) | ||||||||||||||||||||||||||
Risk Management, as adjusted | $ | 45.6 | $ | 12.1 | $ | 33.5 | $ | — | $ | 33.5 | $ | 0.18 | $ | 69.7 | $ | 18.4 | $ | 51.3 | $ | — | $ | 51.3 | $ | 0.27 | ||||||||||||||||||||||||
(i) | Identifying, negotiating and placing all forms of insurance or reinsurance coverage, as well as providing risk-shifting, risk-sharing and risk-mitigation consulting services, principally related to property/casualty, life, health, welfare and disability insurance. We also provide these services through, or in conjunction with, other unrelated agents and brokers, consultants and management advisors. |
(ii) | Acting as an agent or broker for multiple underwriting enterprises by providing services such as sales, marketing, selecting, negotiating, underwriting, servicing and placing insurance coverage on their behalf. |
(iii) | Providing consulting services related to health and welfare benefits, voluntary benefits, executive benefits, compensation, retirement planning, institutional investment and fiduciary, actuarial, compliance, private insurance exchange, human resource technology, communications and benefits administration. |
(iv) | Providing management and administrative services to captives, pools, risk-retention groups, healthcare exchanges, small underwriting enterprises, such as accounting, claims and loss processing assistance, feasibility studies, actuarial studies, data analytics and other administrative services. |
Three-month period | Six-month period | |||||||||||||||||||||||
ended June 30, | ended June 30, | |||||||||||||||||||||||
Statement of Earnings | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||
Commissions | $ | 777.7 | $ | 688.0 | $ | 89.7 | $ | 1,718.1 | $ | 1,527.4 | $ | 190.7 | ||||||||||||
Fees | 256.1 | 220.4 | 35.7 | 517.9 | 473.6 | 44.3 | ||||||||||||||||||
Supplemental revenues | 46.9 | 48.1 | (1.2 | ) | 103.6 | 100.1 | 3.5 | |||||||||||||||||
Contingent revenues | 29.5 | 21.8 | 7.7 | 77.5 | 56.7 | 20.8 | ||||||||||||||||||
Investment income | 19.1 | 15.7 | 3.4 | 37.0 | 28.9 | 8.1 | ||||||||||||||||||
Net gains on divestitures | 1.9 | 6.1 | (4.2 | ) | 59.0 | 9.0 | 50.0 | |||||||||||||||||
Total revenues | 1,131.2 | 1,000.1 | 131.1 | 2,513.1 | 2,195.7 | 317.4 | ||||||||||||||||||
Compensation | 659.3 | 584.3 | 75.0 | 1,336.5 | 1,209.7 | 126.8 | ||||||||||||||||||
Operating | 191.0 | 164.7 | 26.3 | 389.0 | 327.1 | 61.9 | ||||||||||||||||||
Depreciation | 16.4 | 14.3 | 2.1 | 32.6 | 29.1 | 3.5 | ||||||||||||||||||
Amortization | 78.7 | 72.5 | 6.2 | 154.2 | 139.4 | 14.8 | ||||||||||||||||||
Change in estimated acquisition earnout payables | 3.5 | (6.3 | ) | 9.8 | 6.1 | 0.9 | 5.2 | |||||||||||||||||
Total expenses | 948.9 | 829.5 | 119.4 | 1,918.4 | 1,706.2 | 212.2 | ||||||||||||||||||
Earnings before income taxes | 182.3 | 170.6 | 11.7 | 594.7 | 489.5 | 105.2 | ||||||||||||||||||
Provision for income taxes | 44.3 | 43.1 | 1.2 | 147.2 | 122.8 | 24.4 | ||||||||||||||||||
Net earnings | 138.0 | 127.5 | 10.5 | 447.5 | 366.7 | 80.8 | ||||||||||||||||||
Net earnings attributable to noncontrolling interests | 5.1 | 2.1 | 3.0 | 14.9 | 7.1 | 7.8 | ||||||||||||||||||
Net earnings attributable to controlling interests | $ | 132.9 | $ | 125.4 | $ | 7.5 | $ | 432.6 | $ | 359.6 | $ | 73.0 | ||||||||||||
Diluted net earnings per share | $ | 0.70 | $ | 0.68 | $ | 0.02 | $ | 2.29 | $ | 1.94 | $ | 0.35 | ||||||||||||
Other Information | ||||||||||||||||||||||||
Change in diluted net earnings per share | 3 | % | 55 | % | 18 | % | 39 | % | ||||||||||||||||
Growth in revenues | 13 | % | 12 | % | 14 | % | 11 | % | ||||||||||||||||
Organic change in commissions and fees | 6 | % | 5 | % | 5 | % | 5 | % | ||||||||||||||||
Compensation expense ratio | 58 | % | 58 | % | 53 | % | 55 | % | ||||||||||||||||
Operating expense ratio | 17 | % | 16 | % | 15 | % | 15 | % | ||||||||||||||||
Effective income tax rate | 24 | % | 25 | % | 25 | % | 25 | % | ||||||||||||||||
Workforce at end of period (includes acquisitions) | 23,940 | 21,944 | ||||||||||||||||||||||
Identifiable assets at June 30 | $ | 16,464.3 | $ | 13,779.0 | ||||||||||||||||||||
EBITDAC | ||||||||||||||||||||||||
Net earnings | $ | 138.0 | $ | 127.5 | $ | 10.5 | $ | 447.5 | $ | 366.7 | $ | 80.8 | ||||||||||||
Provision for income taxes | 44.3 | 43.1 | 1.2 | 147.2 | 122.8 | 24.4 | ||||||||||||||||||
Depreciation | 16.4 | 14.3 | 2.1 | 32.6 | 29.1 | 3.5 | ||||||||||||||||||
Amortization | 78.7 | 72.5 | 6.2 | 154.2 | 139.4 | 14.8 | ||||||||||||||||||
Change in estimated acquisition earnout payables | 3.5 | (6.3 | ) | 9.8 | 6.1 | 0.9 | 5.2 | |||||||||||||||||
EBITDAC | $ | 280.9 | $ | 251.1 | $ | 29.8 | $ | 787.6 | $ | 658.9 | $ | 128.7 | ||||||||||||
Three-month period | Nine-month period | |||||||||||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||||||||||
Statement of Earnings | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||
Commissions | $ | 809.9 | $ | 707.6 | $ | 102.3 | $ | 2,528.0 | $ | 2,235.0 | $ | 293.0 | ||||||||||||
Fees | 278.9 | 253.7 | 25.2 | 796.8 | 727.3 | 69.5 | ||||||||||||||||||
Supplemental revenues | 49.8 | 43.9 | 5.9 | 153.4 | 144.0 | 9.4 | ||||||||||||||||||
Contingent revenues | 30.4 | 25.7 | 4.7 | 107.9 | 82.4 | 25.5 | ||||||||||||||||||
Investment income | 23.6 | 17.9 | 5.7 | 60.6 | 46.8 | 13.8 | ||||||||||||||||||
Net gains on divestitures | 3.3 | 0.6 | 2.7 | 62.3 | 9.6 | 52.7 | ||||||||||||||||||
Total revenues | 1,195.9 | 1,049.4 | 146.5 | 3,709.0 | 3,245.1 | 463.9 | ||||||||||||||||||
Compensation | 694.1 | 622.1 | 72.0 | 2,030.6 | 1,831.8 | 198.8 | ||||||||||||||||||
Operating | 197.2 | 170.5 | 26.7 | 586.2 | 497.6 | 88.6 | ||||||||||||||||||
Depreciation | 16.4 | 16.3 | 0.1 | 49.0 | 45.4 | 3.6 | ||||||||||||||||||
Amortization | 82.8 | 71.8 | 11.0 | 237.0 | 211.2 | 25.8 | ||||||||||||||||||
Change in estimated acquisition earnout payables | 5.5 | 5.5 | — | 11.6 | 6.4 | 5.2 | ||||||||||||||||||
Total expenses | 996.0 | 886.2 | 109.8 | 2,914.4 | 2,592.4 | 322.0 | ||||||||||||||||||
Earnings before income taxes | 199.9 | 163.2 | 36.7 | 794.6 | 652.7 | 141.9 | ||||||||||||||||||
Provision for income taxes | 48.8 | 41.0 | 7.8 | 196.0 | 163.8 | 32.2 | ||||||||||||||||||
Net earnings | 151.1 | 122.2 | 28.9 | 598.6 | 488.9 | 109.7 | ||||||||||||||||||
Net earnings attributable to noncontrolling interests | 3.4 | 1.6 | 1.8 | 18.3 | 8.7 | 9.6 | ||||||||||||||||||
Net earnings attributable to controlling interests | $ | 147.7 | $ | 120.6 | $ | 27.1 | $ | 580.3 | $ | 480.2 | $ | 100.1 | ||||||||||||
Diluted net earnings per share | $ | 0.77 | $ | 0.65 | $ | 0.12 | $ | 3.06 | $ | 2.58 | $ | 0.48 | ||||||||||||
Other Information | ||||||||||||||||||||||||
Change in diluted net earnings per share | 18 | % | 25 | % | 19 | % | 34 | % | ||||||||||||||||
Growth in revenues | 14 | % | 12 | % | 14 | % | 11 | % | ||||||||||||||||
Organic change in commissions and fees | 6 | % | 6 | % | 6 | % | 5 | % | ||||||||||||||||
Compensation expense ratio | 58 | % | 59 | % | 55 | % | 56 | % | ||||||||||||||||
Operating expense ratio | 16 | % | 16 | % | 16 | % | 15 | % | ||||||||||||||||
Effective income tax rate | 24 | % | 25 | % | 25 | % | 25 | % | ||||||||||||||||
Workforce at end of period (includes acquisitions) | 24,722 | 22,345 | ||||||||||||||||||||||
Identifiable assets at September 30 | $ | 16,261.6 | $ | 13,700.7 | ||||||||||||||||||||
EBITDAC | ||||||||||||||||||||||||
Net earnings | $ | 151.1 | $ | 122.2 | $ | 28.9 | $ | 598.6 | $ | 488.9 | $ | 109.7 | ||||||||||||
Provision for income taxes | 48.8 | 41.0 | 7.8 | 196.0 | 163.8 | 32.2 | ||||||||||||||||||
Depreciation | 16.4 | 16.3 | 0.1 | 49.0 | 45.4 | 3.6 | ||||||||||||||||||
Amortization | 82.8 | 71.8 | 11.0 | 237.0 | 211.2 | 25.8 | ||||||||||||||||||
Change in estimated acquisition earnout payables | 5.5 | 5.5 | — | 11.6 | 6.4 | 5.2 | ||||||||||||||||||
EBITDAC | $ | 304.6 | $ | 256.8 | $ | 47.8 | $ | 1,092.2 | $ | 915.7 | $ | 176.5 | ||||||||||||
Three-month period | Six-month period | |||||||||||||||||||||||
ended June 30, | ended June 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Net earnings, as reported | $ | 138.0 | $ | 127.5 | 8.2 | % | $ | 447.5 | $ | 366.7 | 22.0 | % | ||||||||||||
Provision for income taxes | 44.3 | 43.1 | 147.2 | 122.8 | ||||||||||||||||||||
Depreciation | 16.4 | 14.3 | 32.6 | 29.1 | ||||||||||||||||||||
Amortization | 78.7 | 72.5 | 154.2 | 139.4 | ||||||||||||||||||||
Change in estimated acquisition earnout payables | 3.5 | (6.3 | ) | 6.1 | 0.9 | |||||||||||||||||||
EBITDAC | 280.9 | 251.1 | 11.9 | % | 787.6 | 658.9 | 19.5 | % | ||||||||||||||||
Net gains on divestitures | (1.9 | ) | (6.1 | ) | (46.0 | ) | (9.0 | ) | ||||||||||||||||
Acquisition integration | 3.4 | — | 3.8 | — | ||||||||||||||||||||
Acquisition related adjustments | 6.1 | 5.8 | 8.7 | 8.5 | ||||||||||||||||||||
Workforce and lease termination related charges | 9.5 | 3.5 | 15.8 | 11.1 | ||||||||||||||||||||
Levelized foreign currency translation | — | (0.9 | ) | — | (5.9 | ) | ||||||||||||||||||
EBITDAC, as adjusted | $ | 298.0 | $ | 253.4 | 17.6 | % | $ | 769.9 | $ | 663.6 | 16.0 | % | ||||||||||||
Net earnings margin, as reported | 12.2 | % | 12.8 | % | - 55 bpts | 17.8 | % | 16.7 | % | + 111 bpts | ||||||||||||||
EBITDAC margin, as adjusted | 26.4 | % | 25.9 | % | +48 bpts | 31.4 | % | 30.9 | % | + 50 bpts | ||||||||||||||
Reported revenues | $ | 1,131.2 | $ | 1,000.1 | $ | 2,513.1 | $ | 2,195.7 | ||||||||||||||||
Adjusted revenues - see pages 42 and 43 | $ | 1,129.3 | $ | 978.0 | $ | 2,454.1 | $ | 2,149.7 | ||||||||||||||||
Three-month period | Nine-month period | |||||||||||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Net earnings, as reported | $ | 151.1 | $ | 122.2 | 23.7 | % | $ | 598.6 | $ | 488.9 | 22.4 | % | ||||||||||||
Provision for income taxes | 48.8 | 41.0 | 196.0 | 163.8 | ||||||||||||||||||||
Depreciation | 16.4 | 16.3 | 49.0 | 45.4 | ||||||||||||||||||||
Amortization | 82.8 | 71.8 | 237.0 | 211.2 | ||||||||||||||||||||
Change in estimated acquisition earnout payables | 5.5 | 5.5 | 11.6 | 6.4 | ||||||||||||||||||||
EBITDAC | 304.6 | 256.8 | 18.6 | % | 1,092.2 | 915.7 | 19.3 | % | ||||||||||||||||
Net gains on divestitures | (3.3 | ) | (0.6 | ) | (49.3 | ) | (9.6 | ) | ||||||||||||||||
Acquisition integration | 7.1 | 2.2 | 10.9 | 2.2 | ||||||||||||||||||||
Acquisition related adjustments | 2.5 | 3.3 | 11.2 | 11.8 | ||||||||||||||||||||
Workforce and lease termination related charges | 13.4 | 15.6 | 29.2 | 26.7 | ||||||||||||||||||||
Levelized foreign currency translation | — | (2.8 | ) | — | (8.7 | ) | ||||||||||||||||||
EBITDAC, as adjusted | $ | 324.3 | $ | 274.5 | 18.1 | % | $ | 1,094.2 | $ | 938.1 | 16.6 | % | ||||||||||||
Net earnings margin, as reported | 12.6 | % | 11.6 | % | +99 bpts | 16.1 | % | 15.1 | % | +107 bpts | ||||||||||||||
EBITDAC margin, as adjusted | 27.2 | % | 26.5 | % | +68 bpts | 30.0 | % | 29.5 | % | + 56 bpts | ||||||||||||||
Reported revenues | $ | 1,195.9 | $ | 1,049.4 | $ | 3,709.0 | $ | 3,245.1 | ||||||||||||||||
Adjusted revenues - see pages 45 and 46 | $ | 1,192.6 | $ | 1,035.3 | $ | 3,646.7 | $ | 3,185.0 | ||||||||||||||||
Three-Month Period Ended June 30, 2019 | Six-Month PeriodEnded June 30, 2019 | Three-Month Period Ended September 30, 2019 | Nine-Month Period Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||||||||||||||||||||
Organic Revenues (Non-GAAP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Base Commissions and Fees | ||||||||||||||||||||||||||||||||||||||||||||||||
Commission and fees, as reported | $ | 1,033.8 | $ | 908.4 | 13.8 | % | $ | 2,236.0 | $ | 2,001.0 | 11.7 | % | $ | 1,088.8 | $ | 961.3 | 13.3 | % | $ | 3,324.8 | $ | 2,962.3 | 12.2 | % | ||||||||||||||||||||||||
Less commission and fee revenues from acquisitions | (90.8 | ) | — | (175.5 | ) | — | (89.9 | ) | — | (265.4 | ) | — | ||||||||||||||||||||||||||||||||||||
Less divested operations | — | (5.7 | ) | — | (13.5 | ) | — | (4.0 | ) | — | (17.5 | ) | ||||||||||||||||||||||||||||||||||||
Levelized foreign currency translation | — | (14.3 | ) | — | (33.0 | ) | — | (12.0 | ) | — | (45.0 | ) | ||||||||||||||||||||||||||||||||||||
Organic base commission and fees | $ | 943.0 | $ | 888.4 | 6.2 | % | $ | 2,060.5 | $ | 1,954.5 | 5.4 | % | $ | 998.9 | $ | 945.3 | 5.7 | % | $ | 3,059.4 | $ | 2,899.8 | 5.5 | % | ||||||||||||||||||||||||
Supplemental revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental revenues, as reported | $ | 46.9 | $ | 48.1 | -2.5 | % | $ | 103.6 | $ | 100.1 | 3.5 | % | $ | 49.8 | $ | 43.9 | 13.4 | % | $ | 153.4 | $ | 144.0 | 6.5 | % | ||||||||||||||||||||||||
Less supplemental revenues from acquisitions | (1.9 | ) | — | (2.3 | ) | — | (2.8 | ) | — | (5.1 | ) | — | ||||||||||||||||||||||||||||||||||||
Levelized foreign currency translation | — | (0.7 | ) | — | (1.8 | ) | — | (0.6 | ) | — | (2.4 | ) | ||||||||||||||||||||||||||||||||||||
Organic supplemental revenues | $ | 45.0 | $ | 47.4 | -5.1 | % | $ | 101.3 | $ | 98.3 | 3.1 | % | $ | 47.0 | $ | 43.3 | 8.6 | % | $ | 148.3 | $ | 141.6 | 4.7 | % | ||||||||||||||||||||||||
Contingent revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
Contingent revenues, as reported | $ | 29.5 | $ | 21.8 | 35.3 | % | $ | 77.5 | $ | 56.7 | 36.7 | % | $ | 30.4 | $ | 25.7 | 18.3 | % | $ | 107.9 | $ | 82.4 | 31.0 | % | ||||||||||||||||||||||||
Less contingent revenues from acquisitions | (4.3 | ) | — | (8.8 | ) | — | (3.9 | ) | — | (12.7 | ) | — | ||||||||||||||||||||||||||||||||||||
Levelized foreign currency translation | — | (0.1 | ) | — | (0.2 | ) | — | (0.2 | ) | — | (0.4 | ) | ||||||||||||||||||||||||||||||||||||
Organic contingent revenues | $ | 25.2 | $ | 21.7 | 16.1 | % | $ | 68.7 | $ | 56.5 | 21.6 | % | $ | 26.5 | $ | 25.5 | 3.9 | % | $ | 95.2 | $ | 82.0 | 16.1 | % | ||||||||||||||||||||||||
Total reported commissions, fees, supplemental revenues and contingent revenues | $ | 1,110.2 | $ | 978.3 | 13.5 | % | $ | 2,417.1 | $ | 2,157.8 | 12.0 | % | $ | 1,169.0 | $ | 1,030.9 | 13.4 | % | $ | 3,586.1 | $ | 3,188.7 | 12.5 | % | ||||||||||||||||||||||||
Less commission and fee revenues from acquisitions | (97.0 | ) | — | (186.6 | ) | — | (96.6 | ) | — | (283.2 | ) | — | ||||||||||||||||||||||||||||||||||||
Less divested operations | — | (5.7 | ) | — | (13.5 | ) | — | (4.0 | ) | — | (17.5 | ) | ||||||||||||||||||||||||||||||||||||
Levelized foreign currency translation | — | (15.1 | ) | — | (35.0 | ) | — | (12.8 | ) | — | (47.8 | ) | ||||||||||||||||||||||||||||||||||||
Total organic commissions, fees, supplemental revenues and contingent revenues | $ | 1,013.2 | $ | 957.5 | 5.8 | % | $ | 2,230.5 | $ | 2,109.3 | 5.8 | % | $ | 1,072.4 | $ | 1,014.1 | 5.8 | % | $ | 3,302.9 | $ | 3,123.4 | 5.8 | % | ||||||||||||||||||||||||
Three-month periodended June 30, | Six-month periodended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Number of acquisitions closed | 13 | 12 | 24 | 18 | ||||||||||||
Estimated annualized revenues acquired (in millions) | $ | 194.5 | $ | 145.2 | $ | 265.7 | $ | 171.9 | ||||||||
Three-month period | Nine-month period | |||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Number of acquisitions closed | 11 | 9 | 35 | 27 | ||||||||||||
Estimated annualized revenues acquired (in millions) | $ | 69.2 | $ | 61.7 | $ | 334.9 | $ | 233.6 | ||||||||
First | Second | Third | Fourth | |||||||||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | YTD | Quarter | Quarter | Quarter | Quarter | YTD | |||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||
Reported supplemental revenues | $ | 56.7 | $ | 46.9 | $ | 103.6 | $ | 56.7 | $ | 46.9 | $ | 49.8 | $ | 153.4 | ||||||||||||||||||||||||||
Reported contingent revenues | 48.0 | 29.5 | 77.5 | 48.0 | 29.5 | 30.4 | 107.9 | |||||||||||||||||||||||||||||||||
Reported supplemental and contingent revenues | $ | 104.7 | $ | 76.4 | $ | 181.1 | $ | 104.7 | $ | 76.4 | $ | 80.2 | $ | 261.3 | ||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||
Reported supplemental revenues | $ | 52.0 | $ | 48.1 | $ | 43.9 | $ | 45.9 | $ | 189.9 | $ | 52.0 | $ | 48.1 | $ | 43.9 | $ | 45.9 | $ | 189.9 | ||||||||||||||||||||
Reported contingent revenues | 34.9 | 21.8 | 25.7 | 15.6 | 98.0 | 34.9 | 21.8 | 25.7 | 15.6 | 98.0 | ||||||||||||||||||||||||||||||
Reported supplemental and contingent revenues | $ | 86.9 | $ | 69.9 | $ | 69.6 | $ | 61.5 | $ | 287.9 | $ | 86.9 | $ | 69.9 | $ | 69.6 | $ | 61.5 | $ | 287.9 | ||||||||||||||||||||
2017 | ||||||||||||||||||||||||||||||||||||||||
Reported supplemental revenues | $ | 47.3 | $ | 35.8 | $ | 36.9 | $ | 38.0 | $ | 158.0 | $ | 47.3 | $ | 35.8 | $ | 36.9 | $ | 38.0 | $ | 158.0 | ||||||||||||||||||||
Reported contingent revenues | 35.0 | 21.3 | 21.8 | 21.4 | 99.5 | 35.0 | 21.3 | 21.8 | 21.4 | 99.5 | ||||||||||||||||||||||||||||||
Reported supplemental and contingent revenues | $ | 82.3 | $ | 57.1 | $ | 58.7 | $ | 59.4 | $ | 257.5 | $ | 82.3 | $ | 57.1 | $ | 58.7 | $ | 59.4 | $ | 257.5 | ||||||||||||||||||||
Three-month period ended June 30, | Six-month periodended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Compensation expense, as reported | $ | 659.3 | $ | 584.3 | $ | 1,336.5 | $ | 1,209.7 | ||||||||
Acquisition integration | (2.1 | ) | — | (2.1 | ) | — | ||||||||||
Workforce related charges | (8.5 | ) | (2.9 | ) | (10.7 | ) | (6.8 | ) | ||||||||
Acquisition related adjustments | (6.1 | ) | (5.8 | ) | (8.7 | ) | (8.5 | ) | ||||||||
Levelized foreign currency translation | — | (12.0 | ) | — | (24.5 | ) | ||||||||||
Compensation expense, as adjusted | $ | 642.6 | $ | 563.6 | $ | 1,315.0 | $ | 1,169.9 | ||||||||
Reported compensation expense ratios | 58.3 | % | 58.4 | % | 53.2 | % | 55.1 | % | ||||||||
Adjusted compensation expense ratios | 56.9 | % | 57.6 | % | 53.6 | % | 54.4 | % | ||||||||
Reported revenues | $ | 1,131.2 | $ | 1,000.1 | $ | 2,513.1 | $ | 2,195.7 | ||||||||
Adjusted revenues - see pages 42 and 43 | $ | 1,129.3 | $ | 978.0 | $ | 2,454.1 | $ | 2,149.7 | ||||||||
Three-month period | Nine-month period | |||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Compensation expense, as reported | $ | 694.1 | $ | 622.1 | $ | 2,030.6 | $ | 1,831.8 | ||||||||
Acquisition integration | (3.7 | ) | (1.8 | ) | (5.8 | ) | (1.8 | ) | ||||||||
Workforce related charges | (11.2 | ) | (14.5 | ) | (21.9 | ) | (21.3 | ) | ||||||||
Acquisition related adjustments | (2.5 | ) | (3.3 | ) | (11.2 | ) | (11.8 | ) | ||||||||
Levelized foreign currency translation | — | (8.5 | ) | — | (33.0 | ) | ||||||||||
Compensation expense, as adjusted | $ | 676.7 | $ | 594.0 | $ | 1,991.7 | $ | 1,763.9 | ||||||||
Reported compensation expense ratios | 58.0 | % | 59.3 | % | 54.8 | % | 56.5 | % | ||||||||
Adjusted compensation expense ratios | 56.7 | % | 57.4 | % | 54.6 | % | 55.4 | % | ||||||||
Reported revenues | $ | 1,195.9 | $ | 1,049.4 | $ | 3,709.0 | $ | 3,245.1 | ||||||||
Adjusted revenues - see pages 45 and 46 | $ | 1,192.6 | $ | 1,035.3 | $ | 3,646.7 | $ | 3,185.0 | ||||||||
Three-month period ended June 30, | Six-month periodended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating expense, as reported | $ | 191.0 | $ | 164.7 | $ | 389.0 | $ | 327.1 | ||||||||
Acquisition integration | (1.3 | ) | — | (1.7 | ) | — | ||||||||||
Workforce and lease termination related charges | (1.0 | ) | (0.6 | ) | (5.1 | ) | (4.3 | ) | ||||||||
Costs related to divestitures | — | — | (13.0 | ) | — | |||||||||||
Levelized foreign currency translation | — | (3.1 | ) | — | (6.6 | ) | ||||||||||
Operating expense, as adjusted | $ | 188.7 | $ | 161.0 | $ | 369.2 | $ | 316.2 | ||||||||
Reported operating expense ratios | 16.9 | % | 16.5 | % | 15.5 | % | 14.9 | % | ||||||||
Adjusted operating expense ratios | 16.7 | % | 16.5 | % | 15.0 | % | 14.7 | % | ||||||||
Reported revenues | $ | 1,131.2 | $ | 1,000.1 | $ | 2,513.1 | $ | 2,195.7 | ||||||||
Adjusted revenues - see pages 42 and 43 | $ | 1,129.3 | $ | 978.0 | $ | 2,454.1 | $ | 2,149.7 | ||||||||
Three-month period | Nine-month period | |||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating expense, as reported | $ | 197.2 | $ | 170.5 | $ | 586.2 | $ | 497.6 | ||||||||
Acquisition integration | (3.4 | ) | (0.4 | ) | (5.1 | ) | (0.4 | ) | ||||||||
Workforce and lease termination related charges | (2.2 | ) | (1.1 | ) | (7.3 | ) | (5.4 | ) | ||||||||
Costs related to divestitures | — | — | (13.0 | ) | — | |||||||||||
Levelized foreign currency translation | — | (2.2 | ) | — | (8.8 | ) | ||||||||||
Operating expense, as adjusted | $ | 191.6 | $ | 166.8 | $ | 560.8 | $ | 483.0 | ||||||||
Reported operating expense ratios | 16.5 | % | 16.3 | % | 15.8 | % | 15.3 | % | ||||||||
Adjusted operating expense ratios | 16.1 | % | 16.1 | % | 15.4 | % | 15.2 | % | ||||||||
Reported revenues | $ | 1,195.9 | $ | 1,049.4 | $ | 3,709.0 | $ | 3,245.1 | ||||||||
Adjusted revenues - see pages 45 and 46 | $ | 1,192.6 | $ | 1,035.3 | $ | 3,646.7 | $ | 3,185.0 | ||||||||
Three-month period ended June 30, | Six-month periodended June 30, | |||||||||||||||||||||||
Statement of Earnings | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||
Fees | $ | 208.6 | $ | 201.8 | $ | 6.8 | $ | 411.5 | $ | 396.7 | $ | 14.8 | ||||||||||||
Investment income | 0.5 | 0.1 | 0.4 | 0.9 | 0.3 | 0.6 | ||||||||||||||||||
Revenues before reimbursements | 209.1 | 201.9 | 7.2 | 412.4 | 397.0 | 15.4 | ||||||||||||||||||
Reimbursements | 33.0 | 35.4 | (2.4 | ) | 66.1 | 70.2 | (4.1 | ) | ||||||||||||||||
Total revenues | 242.1 | 237.3 | 4.8 | 478.5 | 467.2 | 11.3 | ||||||||||||||||||
Compensation | 128.8 | 121.3 | 7.5 | 253.6 | 240.3 | 13.3 | ||||||||||||||||||
Operating | 46.5 | 45.9 | 0.6 | 90.9 | 90.1 | 0.8 | ||||||||||||||||||
Reimbursements | 33.0 | 35.4 | (2.4 | ) | 66.1 | 70.2 | (4.1 | ) | ||||||||||||||||
Depreciation | 11.9 | 9.5 | 2.4 | 22.7 | 18.3 | 4.4 | ||||||||||||||||||
Amortization | 1.0 | 0.9 | 0.1 | 2.0 | 2.2 | (0.2 | ) | |||||||||||||||||
Change in estimated acquisition earnout payables | (0.1 | ) | 0.3 | (0.4 | ) | 0.2 | 0.5 | (0.3 | ) | |||||||||||||||
Total expenses | 221.1 | 213.3 | 7.8 | 435.5 | 421.6 | 13.9 | ||||||||||||||||||
Earnings before income taxes | 21.0 | 24.0 | (3.0 | ) | 43.0 | 45.6 | (2.6 | ) | ||||||||||||||||
Provision for income taxes | 5.5 | 6.4 | (0.9 | ) | 11.3 | 12.1 | (0.8 | ) | ||||||||||||||||
Net earnings | 15.5 | 17.6 | (2.1 | ) | 31.7 | 33.5 | (1.8 | ) | ||||||||||||||||
Net earnings attributable to noncontrolling interests | — | — | — | — | — | — | ||||||||||||||||||
Net earnings attributable to controlling interests | $ | 15.5 | $ | 17.6 | $ | (2.1 | ) | $ | 31.7 | $ | 33.5 | $ | (1.8 | ) | ||||||||||
Diluted net earnings per share | $ | 0.08 | $ | 0.09 | $ | (0.01 | ) | $ | 0.17 | $ | 0.18 | $ | (0.01 | ) | ||||||||||
Other information | ||||||||||||||||||||||||
Change in diluted net earnings per share | (11 | %) | 29 | % | (6 | %) | 20 | % | ||||||||||||||||
Growth in revenues (before reimbursements) | 4 | % | 11 | % | 4 | % | 11 | % | ||||||||||||||||
Organic change in fees (before reimbursements) | 3 | % | 10 | % | 4 | % | 9 | % | ||||||||||||||||
Compensation expense ratio (before reimbursements) | 62 | % | 60 | % | 61 | % | 61 | % | ||||||||||||||||
Operating expense ratio (before reimbursements) | 22 | % | 23 | % | 22 | % | 23 | % | ||||||||||||||||
Effective income tax rate | 26 | % | 27 | % | 26 | % | 27 | % | ||||||||||||||||
Workforce at end of period (includes acquisitions) | 6,454 | 6,061 | ||||||||||||||||||||||
Identifiable assets at June 30 | $ | 847.9 | $ | 739.5 | ||||||||||||||||||||
EBITDAC | ||||||||||||||||||||||||
Net earnings | $ | 15.5 | $ | 17.6 | $ | (2.1 | ) | $ | 31.7 | $ | 33.5 | $ | (1.8 | ) | ||||||||||
Provision for income taxes | 5.5 | 6.4 | (0.9 | ) | 11.3 | 12.1 | (0.8 | ) | ||||||||||||||||
Depreciation | 11.9 | 9.5 | 2.4 | 22.7 | 18.3 | 4.4 | ||||||||||||||||||
Amortization | 1.0 | 0.9 | 0.1 | 2.0 | 2.2 | (0.2 | ) | |||||||||||||||||
Change in estimated acquisition earnout payables | (0.1 | ) | 0.3 | (0.4 | ) | 0.2 | 0.5 | (0.3 | ) | |||||||||||||||
EBITDAC | $ | 33.8 | $ | 34.7 | $ | (0.9 | ) | $ | 67.9 | $ | 66.6 | $ | 1.3 | |||||||||||
Three-month period | Nine-month period | |||||||||||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||||||||||
Statement of Earnings | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||
Fees | $ | 211.2 | $ | 199.0 | $ | 12.2 | $ | 622.7 | $ | 595.7 | $ | 27.0 | ||||||||||||
Investment income | 0.4 | 0.1 | 0.3 | 1.3 | 0.4 | 0.9 | ||||||||||||||||||
Revenues before reimbursements | 211.6 | 199.1 | 12.5 | 624.0 | 596.1 | 27.9 | ||||||||||||||||||
Reimbursements | 34.7 | 37.3 | (2.6 | ) | 100.8 | 107.5 | (6.7 | ) | ||||||||||||||||
Total revenues | 246.3 | 236.4 | 9.9 | 724.8 | 703.6 | 21.2 | ||||||||||||||||||
Compensation | 129.1 | 122.4 | 6.7 | 382.7 | 362.7 | 20.0 | ||||||||||||||||||
Operating | 47.5 | 43.1 | 4.4 | 138.4 | 133.2 | 5.2 | ||||||||||||||||||
Reimbursements | 34.7 | 37.3 | (2.6 | ) | 100.8 | 107.5 | (6.7 | ) | ||||||||||||||||
Depreciation | 11.7 | 10.0 | 1.7 | 34.4 | 28.3 | 6.1 | ||||||||||||||||||
Amortization | 1.4 | 1.0 | 0.4 | 3.4 | 3.2 | 0.2 | ||||||||||||||||||
Change in estimated acquisition earnout payables | 0.2 | 0.3 | (0.1 | ) | 0.4 | 0.8 | (0.4 | ) | ||||||||||||||||
Total expenses | 224.6 | 214.1 | 10.5 | 660.1 | 635.7 | 24.4 | ||||||||||||||||||
Earnings before income taxes | 21.7 | 22.3 | (0.6 | ) | 64.7 | 67.9 | (3.2 | ) | ||||||||||||||||
Provision for income taxes | 5.5 | 5.8 | (0.3 | ) | 16.8 | 17.9 | (1.1 | ) | ||||||||||||||||
Net earnings | 16.2 | 16.5 | (0.3 | ) | 47.9 | 50.0 | (2.1 | ) | ||||||||||||||||
Net earnings attributable to noncontrolling interests | — | — | — | — | — | — | ||||||||||||||||||
Net earnings attributable to controlling interests | $ | 16.2 | $ | 16.5 | $ | (0.3 | ) | $ | 47.9 | $ | 50.0 | $ | (2.1 | ) | ||||||||||
Diluted net earnings per share | $ | 0.09 | $ | 0.09 | $ | — | $ | 0.25 | $ | 0.27 | $ | (0.02 | ) | |||||||||||
Other information | ||||||||||||||||||||||||
Change in diluted net earnings per share | 0 | % | 0 | % | (7 | %) | 13 | % | ||||||||||||||||
Growth in revenues (before reimbursements) | 6 | % | 4 | % | 5 | % | 9 | % | ||||||||||||||||
Organic change in fees (before reimbursements) | 6 | % | 4 | % | 4 | % | 7 | % | ||||||||||||||||
Compensation expense ratio (before reimbursements) | 61 | % | 61 | % | 61 | % | 61 | % | ||||||||||||||||
Operating expense ratio (before reimbursements) | 22 | % | 22 | % | 22 | % | 22 | % | ||||||||||||||||
Effective income tax rate | 25 | % | 26 | % | 26 | % | 26 | % | ||||||||||||||||
Workforce at end of period (includes acquisitions) | 6,616 | 6,163 | ||||||||||||||||||||||
Identifiable assets at September 30 | $ | 920.8 | $ | 748.3 | ||||||||||||||||||||
EBITDAC | ||||||||||||||||||||||||
Net earnings | $ | 16.2 | $ | 16.5 | $ | (0.3 | ) | $ | 47.9 | $ | 50.0 | $ | (2.1 | ) | ||||||||||
Provision for income taxes | 5.5 | 5.8 | (0.3 | ) | 16.8 | 17.9 | (1.1 | ) | ||||||||||||||||
Depreciation | 11.7 | 10.0 | 1.7 | 34.4 | 28.3 | 6.1 | ||||||||||||||||||
Amortization | 1.4 | 1.0 | 0.4 | 3.4 | 3.2 | 0.2 | ||||||||||||||||||
Change in estimated acquisition earnout payables | 0.2 | 0.3 | (0.1 | ) | 0.4 | 0.8 | (0.4 | ) | ||||||||||||||||
EBITDAC | $ | 35.0 | $ | 33.6 | $ | 1.4 | $ | 102.9 | $ | 100.2 | $ | 2.7 | ||||||||||||
Three-month period | Nine-month period | |||||||||||||||||||||||||||||||||||||||||||||||
Three-month period ended June 30, | Six-month periodended June 30, | ended September 30, | ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||||||||||||||||||||
Net earnings, as reported | $ | 15.5 | $ | 17.6 | -11.9 | % | $ | 31.7 | $ | 33.5 | -5.4 | % | $ | 16.2 | $ | 16.5 | -1.8 | % | $ | 47.9 | $ | 50.0 | -4.2 | % | ||||||||||||||||||||||||
Provision for income taxes | 5.5 | 6.4 | 11.3 | 12.1 | 5.5 | 5.8 | 16.8 | 17.9 | ||||||||||||||||||||||||||||||||||||||||
Depreciation | 11.9 | 9.5 | 22.7 | 18.3 | 11.7 | 10.0 | 34.4 | 28.3 | ||||||||||||||||||||||||||||||||||||||||
Amortization | 1.0 | 0.9 | 2.0 | 2.2 | 1.4 | 1.0 | 3.4 | 3.2 | ||||||||||||||||||||||||||||||||||||||||
Change in estimated acquisition earnout payables | (0.1 | ) | 0.3 | 0.2 | 0.5 | 0.2 | 0.3 | 0.4 | 0.8 | |||||||||||||||||||||||||||||||||||||||
Total EBITDAC | 33.8 | 34.7 | -2.6 | % | 67.9 | 66.6 | 2.0 | % | 35.0 | 33.6 | 4.2 | % | 102.9 | 100.2 | 2.7 | % | ||||||||||||||||||||||||||||||||
Workforce and lease termination related charges | 2.8 | 1.1 | 3.2 | 1.3 | 3.0 | 2.3 | 6.2 | 3.6 | ||||||||||||||||||||||||||||||||||||||||
Levelized foreign currency translation | — | (0.7 | ) | — | (1.4 | ) | — | (0.6 | ) | — | (2.0 | ) | ||||||||||||||||||||||||||||||||||||
EBITDAC, as adjusted | $ | 36.6 | $ | 35.1 | 4.3 | % | $ | 71.1 | $ | 66.5 | 6.9 | % | $ | 38.0 | $ | 35.3 | 7.7 | % | $ | 109.1 | $ | 101.8 | 7.2 | % | ||||||||||||||||||||||||
Net earnings margin (before reimbursements), as reported | 7.4 | % | 8.7 | % | -131 bpts | 7.7 | % | 8.4 | % | -75 bpts | 7.7 | % | 8.3 | % | - 63 bpts | 7.7 | % | 8.4 | % | - 71 bpts | ||||||||||||||||||||||||||||
EBITDAC margin (before reimbursements), as adjusted | 17.5 | % | 17.6 | % | -12 bpts | 17.2 | % | 17.0 | % | +24 bpts | 18.0 | % | 17.9 | % | + 3 bpts | 17.5 | % | 17.3 | % | + 17 bpts | ||||||||||||||||||||||||||||
Reported revenues (before reimbursements) | $ | 209.1 | $ | 201.9 | $ | 412.4 | $ | 397.0 | $ | 211.6 | $ | 199.1 | $ | 624.0 | $ | 596.1 | ||||||||||||||||||||||||||||||||
Adjusted revenues (before reimbursements) - see pages 42 and 43 | $ | 209.1 | $ | 199.2 | $ | 412.4 | $ | 391.1 | ||||||||||||||||||||||||||||||||||||||||
Adjusted revenues (before reimbursements) - see pages 45 and 46 | $ | 211.6 | $ | 196.9 | $ | 624.0 | $ | 588.0 | ||||||||||||||||||||||||||||||||||||||||
Three-Month Period Ended June 30, 2019 | Six-Month PeriodEnded June 30, 2019 | Three-Month Period Ended September 30, 2019 | Nine-Month Period Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Organic Revenues (Non-GAAP) | 2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||||||||||||||
Fees | $ | 208.2 | $ | 198.5 | 4.9 | % | $ | 409.8 | $ | 391.8 | 4.6 | % | $ | 209.9 | $ | 197.9 | 6.1 | % | $ | 619.7 | $ | 589.7 | 5.1 | % | ||||||||||||||||||||||||
International performance bonus fees | 0.4 | 3.3 | 1.7 | 4.9 | 1.3 | 1.1 | 3.0 | 6.0 | ||||||||||||||||||||||||||||||||||||||||
Fees as reported | 208.6 | 201.8 | 3.4 | % | 411.5 | 396.7 | 3.7 | % | 211.2 | 199.0 | 6.1 | % | 622.7 | 595.7 | 4.5 | % | ||||||||||||||||||||||||||||||||
Less fees from acquisitions | (3.5 | ) | — | (6.9 | ) | — | (3.1 | ) | — | (10.0 | ) | — | ||||||||||||||||||||||||||||||||||||
Levelized foreign currency translation | — | (2.7 | ) | — | (5.9 | ) | — | (2.2 | ) | — | (8.1 | ) | ||||||||||||||||||||||||||||||||||||
Organic fees | $ | 205.1 | $ | 199.1 | 3.0 | % | $ | 404.6 | $ | 390.8 | 3.5 | % | $ | 208.1 | $ | 196.8 | 5.7 | % | $ | 612.7 | $ | 587.6 | 4.3 | % | ||||||||||||||||||||||||
Three-month period | Nine-month period | |||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Number of acquisitions closed | 3 | 1 | 3 | 2 | ||||||||||||
Estimated annualized revenues acquired (in millions) | $ | 15.9 | $ | 13.0 | $ | 15.9 | $ | 16.2 | ||||||||
Three-month period | Nine-month period | |||||||||||||||||||||||||||||||
Three-month periodended June 30, | Six-month periodended June 30, | ended September 30, | ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Compensation expense, as reported | $ | 128.8 | $ | 121.3 | $ | 253.6 | $ | 240.3 | $ | 129.1 | $ | 122.4 | $ | 382.7 | $ | 362.7 | ||||||||||||||||
Workforce related charges | (2.8 | ) | (0.8 | ) | (3.2 | ) | (0.9 | ) | (1.1 | ) | (2.3 | ) | (4.3 | ) | (3.2 | ) | ||||||||||||||||
Levelized foreign currency translation | — | (1.5 | ) | — | (3.4 | ) | — | (1.2 | ) | — | (4.6 | ) | ||||||||||||||||||||
Compensation expense, as adjusted | $ | 126.0 | $ | 119.0 | $ | 250.4 | $ | 236.0 | $ | 128.0 | $ | 118.9 | $ | 378.4 | $ | 354.9 | ||||||||||||||||
Reported compensation expense ratios (before reimbursements) | 61.6 | % | 60.1 | % | 61.5 | % | 60.5 | % | 61.0 | % | 61.5 | % | 61.3 | % | 60.9 | % | ||||||||||||||||
Adjusted compensation expense ratios (before reimbursements) | 60.3 | % | 59.7 | % | 60.7 | % | 60.3 | % | 60.5 | % | 60.4 | % | 60.6 | % | 60.4 | % | ||||||||||||||||
Reported revenues (before reimbursements) | $ | 209.1 | $ | 201.9 | $ | 412.4 | $ | 397.0 | $ | 211.6 | $ | 199.1 | $ | 624.0 | $ | 596.1 | ||||||||||||||||
Adjusted revenues (before reimbursements) - see pages 42 and 43 | $ | 209.1 | $ | 199.2 | $ | 412.4 | $ | 391.1 | ||||||||||||||||||||||||
Adjusted revenues (before reimbursements) - see pages 45 and 46 | $ | 211.6 | $ | 196.9 | $ | 624.0 | $ | 588.0 | ||||||||||||||||||||||||
Three-month period | Six-month period | Three-month period | Nine-month period | |||||||||||||||||||||||||||||
ended June 30, | ended June 30, | ended September 30, | ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Operating expense, as reported | $ | 46.5 | $ | 45.9 | $ | 90.9 | $ | 90.1 | $ | 47.5 | $ | 43.1 | $ | 138.4 | $ | 133.2 | ||||||||||||||||
Workforce and lease termination related charges | — | (0.3 | ) | — | (0.4 | ) | (1.9 | ) | — | (1.9 | ) | (0.4 | ) | |||||||||||||||||||
Levelized foreign currency translation | — | (0.5 | ) | — | (1.1 | ) | — | (0.4 | ) | — | (1.5 | ) | ||||||||||||||||||||
Operating expense, as adjusted | $ | 46.5 | $ | 45.1 | $ | 90.9 | $ | 88.6 | $ | 45.6 | $ | 42.7 | $ | 136.5 | $ | 131.3 | ||||||||||||||||
Reported operating expense ratios (before reimbursements) | 22.2 | % | 22.7 | % | 22.0 | % | 22.7 | % | 22.5 | % | 21.7 | % | 22.2 | % | 22.4 | % | ||||||||||||||||
Adjusted operating expense ratios (before reimbursements) | 22.2 | % | 22.6 | % | 22.0 | % | 22.7 | % | 21.6 | % | 21.7 | % | 21.9 | % | 22.3 | % | ||||||||||||||||
Reported revenues (before reimbursements) | $ | 209.1 | $ | 201.9 | $ | 412.4 | $ | 397.0 | $ | 211.6 | $ | 199.1 | $ | 624.0 | $ | 596.1 | ||||||||||||||||
Adjusted revenues (before reimbursements) - see pages 42 and 43 | $ | 209.1 | $ | 199.2 | $ | 412.4 | $ | 391.1 | ||||||||||||||||||||||||
Adjusted revenues (before reimbursements) - see pages 45 and 46 | $ | 211.6 | $ | 196.9 | $ | 624.0 | $ | 588.0 | ||||||||||||||||||||||||
Three-month period | Six-month period | |||||||||||||||||||||||
ended June 30, | ended June 30, | |||||||||||||||||||||||
Statement of Earnings | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||
Revenues from consolidated clean coal production plants | $ | 270.0 | $ | 411.8 | $ | (141.8 | ) | $ | 626.4 | $ | 812.3 | $ | (185.9 | ) | ||||||||||
Royalty income from clean coal licenses | 15.3 | 11.3 | 4.0 | 31.9 | 23.5 | 8.4 | ||||||||||||||||||
Loss from unconsolidated clean coal production plants | (0.9 | ) | (0.7 | ) | (0.2 | ) | (1.6 | ) | (1.2 | ) | (0.4 | ) | ||||||||||||
Other net gains | 0.1 | 0.6 | (0.5 | ) | 0.1 | 0.6 | (0.5 | ) | ||||||||||||||||
Total revenues | 284.5 | 423.0 | (138.5 | ) | 656.8 | 835.2 | (178.4 | ) | ||||||||||||||||
Cost of revenues from consolidated clean coal production plants | 292.0 | 441.8 | (149.8 | ) | 674.5 | 873.0 | (198.5 | ) | ||||||||||||||||
Compensation | 18.2 | 19.1 | (0.9 | ) | 53.3 | 50.5 | 2.8 | |||||||||||||||||
Operating | 20.2 | 12.2 | 8.0 | 40.3 | 21.7 | 18.6 | ||||||||||||||||||
Interest | 44.9 | 33.9 | 11.0 | 85.1 | 65.2 | 19.9 | ||||||||||||||||||
Depreciation | 7.0 | 7.0 | — | 14.0 | 14.0 | — | ||||||||||||||||||
Total expenses | 382.3 | 514.0 | (131.7 | ) | 867.2 | 1,024.4 | (157.2 | ) | ||||||||||||||||
Loss before income taxes | (97.8 | ) | (91.0 | ) | (6.8 | ) | (210.4 | ) | (189.2 | ) | (21.2 | ) | ||||||||||||
Benefit for income taxes | (65.7 | ) | (69.6 | ) | 3.9 | (204.3 | ) | (198.7 | ) | (5.6 | ) | |||||||||||||
Net earnings (loss) | (32.1 | ) | (21.4 | ) | (10.7 | ) | (6.1 | ) | 9.5 | (15.6 | ) | |||||||||||||
Net earnings attributable to noncontrolling interests | 6.2 | 6.7 | (0.5 | ) | 14.0 | 14.0 | — | |||||||||||||||||
Net earnings (loss) attributable to controlling interests | $ | (38.3 | ) | $ | (28.1 | ) | $ | (10.2 | ) | $ | (20.1 | ) | $ | (4.5 | ) | $ | (15.6 | ) | ||||||
Diluted net earnings (loss) per share | $ | (0.20 | ) | $ | (0.15 | ) | $ | (0.05 | ) | $ | (0.11 | ) | $ | (0.02 | ) | $ | (0.09 | ) | ||||||
Identifiable assets at June 30 | $ | 1,888.1 | $ | 1,712.0 | ||||||||||||||||||||
EBITDAC | ||||||||||||||||||||||||
Net earnings (loss) | $ | (32.1 | ) | $ | (21.4 | ) | $ | (10.7 | ) | $ | (6.1 | ) | $ | 9.5 | $ | (15.6 | ) | |||||||
Benefit for income taxes | (65.7 | ) | (69.6 | ) | 3.9 | (204.3 | ) | (198.7 | ) | (5.6 | ) | |||||||||||||
Interest | 44.9 | 33.9 | 11.0 | 85.1 | 65.2 | 19.9 | ||||||||||||||||||
Depreciation | 7.0 | 7.0 | — | 14.0 | 14.0 | — | ||||||||||||||||||
EBITDAC | $ | (45.9 | ) | $ | (50.1 | ) | $ | 4.2 | $ | (111.3 | ) | $ | (110.0 | ) | $ | (1.3 | ) | |||||||
Three-month period | Nine-month period | |||||||||||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||||||||||
Statement of Earnings | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||
Revenues from consolidated clean coal production plants | $ | 368.2 | $ | 478.1 | $ | (109.9 | ) | $ | 994.6 | $ | 1,290.4 | $ | (295.8 | ) | ||||||||||
Royalty income from clean coal licenses | 18.3 | 14.8 | 3.5 | 50.2 | 38.3 | 11.9 | ||||||||||||||||||
Loss from unconsolidated clean coal production plants | (0.5 | ) | (0.5 | ) | — | (2.1 | ) | (1.7 | ) | (0.4 | ) | |||||||||||||
Other net (losses) gains | (3.0 | ) | 0.3 | (3.3 | ) | (2.9 | ) | 0.9 | (3.8 | ) | ||||||||||||||
Total revenues | 383.0 | 492.7 | (109.7 | ) | 1,039.8 | 1,327.9 | (288.1 | ) | ||||||||||||||||
Cost of revenues from consolidated clean coal production plants | 397.4 | 508.8 | (111.4 | ) | 1,071.9 | 1,381.8 | (309.9 | ) | ||||||||||||||||
Compensation | 15.5 | 21.2 | (5.7 | ) | 68.8 | 71.7 | (2.9 | ) | ||||||||||||||||
Operating | 23.3 | 14.1 | 9.2 | 63.6 | 35.8 | 27.8 | ||||||||||||||||||
Interest | 46.6 | 36.7 | 9.9 | 131.7 | 101.9 | 29.8 | ||||||||||||||||||
Depreciation | 7.0 | 7.1 | (0.1 | ) | 21.0 | 21.1 | (0.1 | ) | ||||||||||||||||
Total expenses | 489.8 | 587.9 | (98.1 | ) | 1,357.0 | 1,612.3 | (255.3 | ) | ||||||||||||||||
Loss before income taxes | (106.8 | ) | (95.2 | ) | (11.6 | ) | (317.2 | ) | (284.4 | ) | (32.8 | ) | ||||||||||||
Benefit for income taxes | (76.6 | ) | (94.9 | ) | 18.3 | (280.9 | ) | (293.6 | ) | 12.7 | ||||||||||||||
Net earnings (loss) | (30.2 | ) | (0.3 | ) | (29.9 | ) | (36.3 | ) | 9.2 | (45.5 | ) | |||||||||||||
Net earnings attributable to noncontrolling interests | 7.6 | 9.2 | (1.6 | ) | 21.6 | 23.2 | (1.6 | ) | ||||||||||||||||
Net earnings (loss) attributable to controlling interests | $ | (37.8 | ) | $ | (9.5 | ) | $ | (28.3 | ) | $ | (57.9 | ) | $ | (14.0 | ) | $ | (43.9 | ) | ||||||
Diluted net earnings (loss) per share | $ | (0.20 | ) | $ | (0.06 | ) | $ | (0.14 | ) | $ | (0.30 | ) | $ | (0.07 | ) | $ | (0.23 | ) | ||||||
Identifiable assets at September 30 | $ | 1,991.4 | $ | 1,665.7 | ||||||||||||||||||||
EBITDAC | ||||||||||||||||||||||||
Net earnings (loss) | $ | (30.2 | ) | $ | (0.3 | ) | $ | (29.9 | ) | $ | (36.3 | ) | $ | 9.2 | $ | (45.5 | ) | |||||||
Benefit for income taxes | (76.6 | ) | (94.9 | ) | 18.3 | (280.9 | ) | (293.6 | ) | 12.7 | ||||||||||||||
Interest | 46.6 | 36.7 | 9.9 | 131.7 | 101.9 | 29.8 | ||||||||||||||||||
Depreciation | 7.0 | 7.1 | (0.1 | ) | 21.0 | 21.1 | (0.1 | ) | ||||||||||||||||
EBITDAC | $ | (53.2 | ) | $ | (51.4 | ) | $ | (1.8 | ) | $ | (164.5 | ) | $ | (161.4 | ) | $ | (3.1 | ) | ||||||
Change in interest expense related to: | Three-month period ended June 30, 2019 | Six-month period ended June 30, 2019 | ||||||
Interest on borrowings from our Credit Agreement | $ | (0.1 | ) | $ | 1.1 | |||
Interest on the maturity of the Series C notes | (0.7 | ) | (1.4 | ) | ||||
Interest on the maturity of the Series K notes | (0.3 | ) | (0.6 | ) | ||||
Interest on the $500.0 million notes funded on June 13, 2018 | 4.2 | 9.9 | ||||||
Interest on the $340.0 million notes funded on February 13, 2019 | 4.1 | 6.4 | ||||||
Interest on the $260.0 million notes funded on March 13, 2019 | 3.4 | 4.1 | ||||||
Interest on the $175.0 million notes funded on June 12, 2019 | 0.4 | 0.4 | ||||||
Net change in interest expense | $ | 11.0 | $ | 19.9 | ||||
Three-month | Nine-month | |||||||
period ended | period ended | |||||||
Change in interest expense related to: | September 30, 2019 | September 30, 2019 | ||||||
Interest on borrowings from our Credit Agreement | $ | 1.4 | $ | 2.5 | ||||
Interest on the maturity of the Series C notes | (0.8 | ) | (2.2 | ) | ||||
Interest on the maturity of the Series K and L notes | (0.5 | ) | (1.1 | ) | ||||
Interest on the $500.0 million notes funded on June 13, 2018 | 0.2 | 10.1 | ||||||
Interest on the $340.0 million notes funded on February 13, 2019 | 4.3 | 10.7 | ||||||
Interest on the $260.0 million notes funded on March 13, 2019 | 3.3 | 7.4 | ||||||
Interest on the $175.0 million notes funded on June 12, 2019 | 2.0 | 2.4 | ||||||
Net change in interest expense | $ | 9.9 | $ | 29.8 | ||||
Three-Month Periods June 30, | 2019 | 2018 | ||||||||||||||||||||||
Pretax Loss | Income Tax (Provision) Benefit | Net Earnings (Loss) Attributable to Controlling Interests | Pretax Loss | Income Tax (Provision) Benefit | Net Earnings (Loss) Attributable to Controlling Interests | |||||||||||||||||||
Interest and banking costs | $ | (46.0 | ) | $ | 12.0 | $ | (34.0 | ) | $ | (34.4 | ) | $ | 8.9 | $ | (25.5 | ) | ||||||||
Clean energy related (1) | (36.6 | ) | 44.8 | 8.2 | (44.8 | ) | 59.2 | 14.4 | ||||||||||||||||
Acquisition costs | (7.8 | ) | 1.3 | (6.5 | ) | (3.0 | ) | 0.4 | (2.6 | ) | ||||||||||||||
Corporate (including impact of U.S. tax reform) | (13.7 | ) | 7.7 | (6.0 | ) | (15.5 | ) | 1.1 | (14.4 | ) | ||||||||||||||
Adjusted second quarter | $ | (104.1 | ) | $ | 65.8 | $ | (38.3 | ) | $ | (97.7 | ) | $ | 69.6 | $ | (28.1 | ) | ||||||||
2019 | 2018 | |||||||||||||||||||||||
Net Earnings | Net Earnings | |||||||||||||||||||||||
Income | (Loss) | Income | (Loss) | |||||||||||||||||||||
Tax | Attributable to | Tax | Attributable to | |||||||||||||||||||||
Pretax | (Provision) | Controlling | Pretax | (Provision) | Controlling | |||||||||||||||||||
Loss | Benefit | Interests | Loss | Benefit | Interests | |||||||||||||||||||
Three-Month Periods Ended September 30, | ||||||||||||||||||||||||
Interest and banking costs | $ | (47.8 | ) | $ | 12.4 | $ | (35.4 | ) | $ | (37.6 | ) | $ | 9.8 | $ | (27.8 | ) | ||||||||
Clean energy related (1) | (42.0 | ) | 50.6 | 8.6 | (46.1 | ) | 75.8 | 29.7 | ||||||||||||||||
Acquisition costs | (3.5 | ) | 0.4 | (3.1 | ) | (2.5 | ) | 0.1 | (2.4 | ) | ||||||||||||||
Corporate (including impact of U.S. tax reform) | (21.1 | ) | 13.2 | (7.9 | ) | (18.2 | ) | 9.2 | (9.0 | ) | ||||||||||||||
Reported third quarter | (114.4 | ) | 76.6 | (37.8 | ) | (104.4 | ) | 94.9 | (9.5 | ) | ||||||||||||||
Clean energy related (2) | 12.4 | (3.2 | ) | 9.2 | — | — | — | |||||||||||||||||
Interest and banking costs | $ | (47.8 | ) | $ | 12.4 | $ | (35.4 | ) | $ | (37.6 | ) | $ | 9.8 | $ | (27.8 | ) | ||||||||
Clean energy related (1) | (29.6 | ) | 47.4 | 17.8 | (46.1 | ) | 75.8 | 29.7 | ||||||||||||||||
Acquisition costs | (3.5 | ) | 0.4 | (3.1 | ) | (2.5 | ) | 0.1 | (2.4 | ) | ||||||||||||||
Corporate (including impact of U.S. tax reform) | (21.1 | ) | 13.2 | (7.9 | ) | (18.2 | ) | 9.2 | (9.0 | ) | ||||||||||||||
Adjusted three-month periods | $ | (102.0 | ) | $ | 73.4 | $ | (28.6 | ) | $ | (104.4 | ) | $ | 94.9 | $ | (9.5 | ) | ||||||||
Nine-Month Periods Ended September 30, | ||||||||||||||||||||||||
Interest and banking costs | $ | (134.9 | ) | $ | 35.1 | $ | (99.8 | ) | $ | (104.5 | ) | $ | 27.2 | $ | (77.3 | ) | ||||||||
Clean energy related (1) | (132.1 | ) | 210.4 | 78.3 | (147.8 | ) | 244.4 | 96.6 | ||||||||||||||||
Acquisition costs | (15.2 | ) | 2.3 | (12.9 | ) | (7.5 | ) | 0.8 | (6.7 | ) | ||||||||||||||
Corporate (including impact of U.S. tax reform) | (56.6 | ) | 33.1 | (23.5 | ) | (47.8 | ) | 21.2 | (26.6 | ) | ||||||||||||||
Reported third quarter | (338.8 | ) | 280.9 | (57.9 | ) | (307.6 | ) | 293.6 | (14.0 | ) | ||||||||||||||
Clean energy related (2) | 12.4 | (3.2 | ) | 9.2 | — | — | — | |||||||||||||||||
Interest and banking costs | $ | (134.9 | ) | $ | 35.1 | $ | (99.8 | ) | $ | (104.5 | ) | $ | 27.2 | $ | (77.3 | ) | ||||||||
Clean energy related (1) | (119.7 | ) | 207.2 | 87.5 | (147.8 | ) | 244.4 | 96.6 | ||||||||||||||||
Acquisition costs | (15.2 | ) | 2.3 | (12.9 | ) | (7.5 | ) | 0.8 | (6.7 | ) | ||||||||||||||
Corporate (including impact of U.S. tax reform) | (56.6 | ) | 33.1 | (23.5 | ) | (47.8 | ) | 21.2 | (26.6 | ) | ||||||||||||||
Adjusted nine-month periods | $ | (326.4 | ) | $ | 277.7 | $ | (48.7 | ) | $ | (307.6 | ) | $ | 293.6 | $ | (14.0 | ) | ||||||||
Six-Month Periods Ended June 30, | 2019 | 2018 | ||||||||||||||||||||||
Pretax Loss | Income Tax (Provision) Benefit | Net Earnings (Loss) Attributable to Controlling Interests | Pretax Loss | Income Tax (Provision) Benefit | Net Earnings (Loss) Attributable to Controlling Interests | |||||||||||||||||||
Interest and banking costs | $ | (87.1 | ) | $ | 22.7 | $ | (64.4 | ) | $ | (66.9 | ) | $ | 17.4 | $ | (49.5 | ) | ||||||||
Clean energy related (1) | (90.1 | ) | 159.8 | 69.7 | (101.7 | ) | 168.6 | 66.9 | ||||||||||||||||
Acquisition costs | (11.7 | ) | 1.9 | (9.8 | ) | (5.0 | ) | 0.7 | (4.3 | ) | ||||||||||||||
Corporate (including impact of U.S. tax reform) | (35.6 | ) | 20.0 | (15.6 | ) | (29.6 | ) | 12.0 | (17.6 | ) | ||||||||||||||
Adjusted second quarter | $ | (224.5 | ) | $ | 204.4 | $ | (20.1 | ) | $ | (203.2 | ) | $ | 198.7 | $ | (4.5 | ) | ||||||||
(1) | Pretax loss for the |
(2) | Clean energy related adjustments - During three-month period ended September 30, 2019, we and our 46.5% owned affiliate, Chem-Mod LLC, incurred costs related to (a) settling certain patent infringement litigation, (b) prevailing in a tax court matter, (c) defending a new patent matter, and (d) moving three 2011 Era plants into different locations that could generate more after-tax earnings in 2020 than in 2019. |
Our Portion of Estimated | ||||||||||||
Low Range | High Range | |||||||||||
2019 | 2019 | |||||||||||
Adjusted | Adjusted | |||||||||||
After-tax | After-tax | |||||||||||
Earnings | Earnings | |||||||||||
Investments that own 2009 Era Plants | ||||||||||||
12 | 2009 Under long-term production contracts | $ | 14.0 | $ | 15.0 | |||||||
2 | 2009 Not currently active in negotiations for long-term production contracts | Not Estimable | Not Estimable | |||||||||
Investments that own 2011 Era Plants | ||||||||||||
17 | 2011 Under long-term production contracts | 56.0 | 58.0 | |||||||||
3 | 2011 Moving to different locations in Q3 and Q4 2019 | 1.5 | 2.5 | |||||||||
Chem-Mod royalty income, net of noncontrolling interests | 26.0 | 27.0 |
Our Tax-Effected Book Value At June 30, 2019 | Our Portion of Estimated | ||||||||||||||||
Low Range 2019 After-tax Earnings | High Range 2019 After-tax Earnings | ||||||||||||||||
Investments that own 2009 Era Plants | |||||||||||||||||
12 | Under long-term production contracts | $ | 1.9 | $ | 13.0 | $ | 15.0 | ||||||||||
2 | Not currently active in negotiations for long-term production contracts | — | Not Estimable | Not Estimable | |||||||||||||
Investments that own 2011 Era Plants | |||||||||||||||||
19 | Under long-term production contracts | 26.8 | 58.0 | 67.0 | |||||||||||||
1 | In early stages of negotiations for long-term production contract | 0.1 | Not Estimable | Not Estimable | |||||||||||||
Chem-Mod royalty income, net of noncontrolling interests | 3.0 | 24.0 | 28.0 |
Six-month period endedJune 30, | Nine-month period endedSeptember 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net change in premiums and fees receivable | $ | (1,109.0 | ) | $ | (1,097.3 | ) | $ | (832.1 | ) | $ | (782.3 | ) | ||||
Net change in premiums payable to underwriting enterprises | 1,079.2 | 1,106.9 | 843.3 | 729.1 | ||||||||||||
Net cash (used) provided by the above | $ | (29.8 | ) | $ | 9.6 | |||||||||||
Net cash provided (used) by the above | $ | 11.2 | $ | (53.2 | ) | |||||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3) | Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs (3) | ||||||||||||
April 1 through April 30, 2019 | 5,359 | $ | 82.32 | — | 7,287,019 | |||||||||||
May 1 through May 31, 2019 | 3,109 | 83.94 | — | 7,287,019 | ||||||||||||
June 1 through June 30, 2019 | 105,802 | 87.26 | — | 7,287,019 | ||||||||||||
Total | 114,270 | $ | 86.94 | — |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3) | Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs (3) | ||||||||||||
July 1 through July 31, 2019 | 2,815 | $ | 91.21 | — | 7,287,019 | |||||||||||
August 1 through August 31, 2019 | 11,906 | 89.08 | — | 7,287,019 | ||||||||||||
September 1 through September 30, 2019 | 29,457 | 89.25 | — | 7,287,019 | ||||||||||||
Total | 44,178 | $ | 89.94 | — | ||||||||||||
(1) | Amounts in this column include shares of our common stock purchased by the trustees of trusts established under our Deferred Equity Participation Plan, including sub-plans (which we refer to as the DEPP), our Deferred Cash Participation Plan (which we refer to as the DCPP) and our Supplemental Savings and Thrift Plan (which we refer to as the Supplemental Plan), respectively. These plans are considered to be unfunded for purposes of federal tax law since the assets of these trusts are available to our creditors in the event of our financial insolvency. The DEPP is an unfunded,non-qualified deferred compensation plan that generally provides for distributions to certain of our key executives when they reach age 62 or upon or after their actual retirement. Undersub-plans of the DEPP for certain production staff, the plan generally provides for vesting and/or distributions no sooner than five years from the date of awards, although certain awards vest and/or distribute after the earlier of fifteen years or the participant reaching age 65. See Note 10 to the non-qualified deferred compensation plan for certain key employees, other than executive officers, that generally provides for vesting and/or distributions no sooner than five years from the date of awards. Under the terms of the DEPP and the DCPP, we may contribute cash to the rabbi trust and instruct the trustee to acquire a specified number of shares of our common stock on the open market or in privately negotiated transactions. In the non-qualified deferred compensation plan that allows certain highly compensated employees to defer compensation, including company match amounts, on abefore-tax basis orafter-tax basis. Under the terms of the Supplemental Plan, all amounts credited to an employee’s account may be deemed invested, at the employee’s election, in a number of investment options that include various mutual funds, an annuity product and a fund representing our common stock. When an employee elects to have some or all of the amounts credited to the employee’s account under the Supplemental Plan deemed to be invested in the fund representing our common stock, the trustee of the trust for the Supplemental Plan purchases shares of our common stock in a number sufficient to ensure that the trust holds a number of shares of our common stock with a value equal to all equivalent to the amounts deemed invested in the fund representing our common stock. We want to ensure that at the time |
(2) | The average price paid per share is calculated on a settlement basis and does not include commissions. |
(3) | We have a common stock repurchase plan that the board of directors adopted on May 10, 1988 and has periodically amended since that date to authorize additional shares for repurchase (the last amendment was on January 24, 2008 and approved the repurchase of 10,000,000 shares). The repurchase plan has no expiration date and we are under no commitment or obligation to repurchase any particular amount of our common stock under the plan. At our discretion, we may suspend the repurchase plan at any time. |
Item 6. | Exhibits |
31.1 | ||||||
31.2 | ||||||
32.1 | ||||||
32.2 | ||||||
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended |
Arthur J. Gallagher & Co. | ||||||
Date: | By: | /s/ Douglas K. Howell | ||||
Douglas K. Howell | ||||||
Vice President and Chief Financial Officer | ||||||
(principal financial officer and duly authorized officer) |