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Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Components of fixed assets | The components of fixed assets are as follows:
December 31, |  |  |  |
(In millions of dollars) |  | 2018 |  |  | 2017 |
Furniture and equipment |  | $ | 1,159 |  |  | $ | 1,179 |
Land and buildings |  | 377 |  |  | 385 |
Leasehold and building improvements |  | 1,007 |  |  | 974 |
|  | 2,543 |  |  | 2,538 |
Less-accumulated depreciation and amortization |  | (1,842 | ) |  | (1,826 | )
|  | $ | 701 |  |  | $ | 712 |
Diluted earnings per share for continuing operations | Reconciliations of the applicable components used to calculate basic and diluted EPS - Continuing Operations are presented below. The reconciling items related to the EPS calculation are the same for both basic and diluted EPS.
Basic and Diluted EPS Calculation - Continuing Operations
(In millions, except per share figures) | 2018 |  |  | 2017 |  |  | 2016 |
Net income from continuing operations | $ | 1,670 |  |  | $ | 1,510 |  |  | $ | 1,795 |
Less: Net income attributable to non-controlling interests | 20 |  |  | 20 |  |  | 27 |
| $ | 1,650 |  |  | $ | 1,490 |  |  | $ | 1,768 |
Basic weighted average common shares outstanding | 506 |  |  | 513 |  |  | 519 |
Dilutive effect of potentially issuable common shares | 5 |  |  | 6 |  |  | 5 |
Diluted weighted average common shares outstanding | 511 |  |  | 519 |  |  | 524 |
Average stock price used to calculate common stock equivalents | $ | 83.13 |  |  | $ | 77.30 |  |  | $ | 63.51 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The impact of adoption of the new revenue standard on the Company's consolidated income statement was as follows (in millions):
|  | For the Year Ended December 31, 2018
|  | As Reported |  | Revenue Standard Impact |  | Legacy GAAP
Revenue |  | $ | 14,950 |  |  | $ | 2 |  |  | $ | 14,952 |
Expense: |  |  |  |  |  |  |  |
Compensation and benefits |  | 8,605 |  |  | 17 |  |  | 8,622 |
Other operating expenses |  | 3,584 |  |  | — |  |  | 3,584 |
Operating expenses |  | 12,189 |  |  | 17 |  |  | 12,206 |
Operating income |  | 2,761 |  |  | (15 | ) |  | 2,746 |
Other net benefit credits |  | 215 |  |  | — |  |  | 215 |
Interest income |  | 11 |  |  | — |  |  | 11 |
Interest expense |  | (290 | ) |  | — |  |  | (290 | )
Investment (loss) income |  | (12 | ) |  | — |  |  | (12 | )
Acquisition related derivative contracts |  | (441 | ) |  | — |  |  | (441 | )
Income before income taxes |  | 2,244 |  |  | (15 | ) |  | 2,229 |
Income tax expense |  | 574 |  |  | (4 | ) |  | 570 |
Net income before non-controlling interests |  | 1,670 |  |  | (11 | ) |  | 1,659 |
Less: Net income attributable to non-controlling interests |  | 20 |  |  | — |  |  | 20 |
Net income attributable to the Company |  | $ | 1,650 |  |  | $ | (11 | ) |  | $ | 1,639 |
The impact of adoption of the new revenue standard on the Company's consolidated balance sheet was as follows (in millions):
|  | December 31, 2018
|  | As Reported |  | Revenue Standard Impact |  | Legacy GAAP
ASSETS |  |  |  |  |  |
Current assets: |  |  |  |  |  |
Cash and cash equivalents |  | $ | 1,066 |  |  | $ | — |  |  | $ | 1,066 |
Net receivables |  | 4,317 |  |  | (68 | ) |  | 4,249 |
Other current assets |  | 551 |  |  | (326 | ) |  | 225 |
Total current assets |  | 5,934 |  |  | (394 | ) |  | 5,540 |
Goodwill and intangible assets |  | 11,036 |  |  | — |  |  | 11,036 |
Fixed assets, net |  | 701 |  |  | — |  |  | 701 |
Pension related assets |  | 1,688 |  |  | — |  |  | 1,688 |
Deferred tax assets |  | 680 |  |  | 107 |  |  | 787 |
Other assets |  | 1,539 |  |  | (242 | ) |  | 1,297 |
TOTAL ASSETS |  | $ | 21,578 |  |  | $ | (529 | ) |  | $ | 21,049 |
LIABILITIES AND EQUITY |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |
Short-term debt |  | $ | 314 |  |  | $ | — |  |  | $ | 314 |
Accounts payable and accrued liabilities |  | 2,234 |  |  | (129 | ) |  | 2,105 |
Accrued compensation and employee benefits |  | 1,778 |  |  | — |  |  | 1,778 |
Acquisition related derivatives |  | 441 |  |  | — |  |  | 441 |
Accrued income taxes |  | 157 |  |  | — |  |  | 157 |
Total current liabilities |  | 4,924 |  |  | (129 | ) |  | 4,795 |
Fiduciary liabilities |  | 5,001 |  |  | — |  |  | 5,001 |
Less - cash and investments held in a fiduciary capacity |  | (5,001 | ) |  | — |  |  | (5,001 | )
|  | — |  |  | — |  |  | — |
Long-term debt |  | 5,510 |  |  | — |  |  | 5,510 |
Pension, post-retirement and post-employment benefits |  | 1,911 |  |  | — |  |  | 1,911 |
Liabilities for errors and omissions |  | 287 |  |  | — |  |  | 287 |
Other liabilities |  | 1,362 |  |  | (25 | ) |  | 1,337 |
Total equity |  | 7,584 |  |  | (375 | ) |  | 7,209 |
TOTAL LIABILITIES AND EQUITY |  | $ | 21,578 |  |  | $ | (529 | ) |  | $ | 21,049 |
The impact of adoption of the new revenue standard on the Company's consolidated statement of cash flow was as follows (in millions):
|  | Twelve Months Ended December 31, 2018
|  | As Reported |  | Revenue Standard Impact |  | Legacy GAAP
Operating cash flows: |  |  |  |  |  |
Net income before non-controlling interests |  | $ | 1,670 |  |  | $ | (11 | ) |  | $ | 1,659 |
Adjustments to reconcile net income to cash provided by operations: |  |  |  |  |  |
Depreciation and amortization of fixed assets and capitalized software |  | 311 |  |  | — |  |  | 311 |
Amortization of intangible assets |  | 183 |  |  | — |  |  | 183 |
Adjustments and payments related to contingent consideration liability |  | (4 | ) |  | — |  |  | (4 | )
Loss on deconsolidation of entity |  | 11 |  |  | — |  |  | 11 |
Benefit for deferred income taxes |  | (39 | ) |  | — |  |  | (39 | )
Loss on investments |  | 12 |  |  | — |  |  | 12 |
Gain on disposition of assets |  | (48 | ) |  | — |  |  | (48 | )
Change in fair value of acquisition related derivative contracts |  | 441 |  |  | — |  |  | 441 |
Share-based compensation expense |  | 193 |  |  | — |  |  | 193 |
Changes in assets and liabilities: |  |  |  |  |  |
Net receivables |  | (78 | ) |  | — |  |  | (78 | )
Other current assets |  | 26 |  |  | 8 |  |  | 34 |
Other assets |  | (37 | ) |  | 12 |  |  | (25 | )
Accounts payable and accrued liabilities |  | 23 |  |  | (7 | ) |  | 16 |
Accrued compensation and employee benefits |  | 68 |  |  | — |  |  | 68 |
Accrued income taxes |  | (40 | ) |  | — |  |  | (40 | )
Contributions to pension and other benefit plans in excess of current year expense/credit |  | (291 | ) |  | — |  |  | (291 | )
Other liabilities |  | 9 |  |  | (2 | ) |  | 7 |
Effect of exchange rate changes |  | 18 |  |  | — |  |  | 18 |
Net cash provided by operations |  | $ | 2,428 |  |  | $ | — |  |  | $ | 2,428 |
New Accounting Pronouncement, Early Adoption | The impact on the Company's balance sheet as of January 1, 2018 related to the adoption of the accounting standards using the modified retrospective approach as discussed above is as follows:
|  |  | Adjustments |  |
| Balance at December 31, 2017 |  | Revenue Recognition |  | Financial Instruments |  | Intra-Entity Transfer |  | Balance at January 1, 2018
Balance Sheet |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Net Receivables | $ | 4,133 |  |  | $ | 68 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,201 |
Other Current Assets | 224 |  |  | 318 |  |  | — |  |  | — |  |  | 542 |
Other Assets | 1,430 |  |  | 226 |  |  | — |  |  | — |  |  | 1,656 |
Deferred Tax Assets | 669 |  |  | (103 | ) |  | — |  |  | (14 | ) |  | 552 |
Liabilities |  |  |  |  |  |  |  |  |
Accounts Payable and Accrued Liabilities | 2,083 |  |  | 122 |  |  | — |  |  | — |  |  | 2,205 |
Other Liabilities | 1,311 |  |  | 23 |  |  | — |  |  | — |  |  | 1,334 |
Equity |  |  |  |  |  |  |  |  |
Other Accumulated Comprehensive Income | — |  |  | — |  |  | (14 | ) |  | — |  |  | (14 | )
Retained Earnings | $ | 13,140 |  |  | $ | 364 |  |  | $ | 14 |  |  | $ | (14 | ) |  | $ | 13,504 |

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