XML 35 R16.htm IDEA: XBRL DOCUMENT
v3.19.2

Goodwill and Other Intangibles | 6 Months Ended
--- | ---
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangibles | Goodwill and Other Intangibles The Company is required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate impairment may have occurred. The Company performs the annual impairment assessment for each of its reporting units during the third quarter of each year. In accordance with applicable accounting guidance, the Company assesses qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test. As part of its assessment, the Company considers numerous factors, including that the fair value of each reporting unit exceeds its carrying value by a substantial margin based on its most recent estimates, whether significant acquisitions or dispositions occurred which might alter the fair value of its reporting units, macroeconomic conditions and their potential impact on reporting unit fair values, actual performance compared with budget and prior projections used in its estimation of reporting unit fair values, industry and market conditions, and the year-over-year change in the Company’s share price. The Company completed its qualitative assessment in the third quarter of 2018 and concluded that a two-step goodwill impairment test was not required in 2018 and that goodwill was not impaired. There were no events or circumstances since our last qualitative assessment in the third quarter of 2018 that would indicate a goodwill impairment. Other intangible assets that are not deemed to have an indefinite life are amortized over their estimated lives and reviewed for impairment upon the occurrence of certain triggering events in accordance with applicable accounting literature. Changes in the carrying amount of goodwill are as follows:
June 30, |  |  |
(In millions) | 2019 |  |  | 2018 |
Balance as of January 1, | $ | 9,599 |  |  | $ | 9,089 |
Goodwill acquired (a) | 4,895 |  |  | 116 |
Other adjustments(b) | (15 | ) |  | (28 | )
Balance at June 30, | $ | 14,479 |  |  | $ | 9,177 |
(a) Primarily reflects the acquisition of JLT in 2019 of $4.7 billion. (b) Primarily reflects the impact of foreign exchange. Of total goodwill acquired of $4.9 billion in 2019, $200 million related to the Risk and Insurance Services segment is deductible for tax purposes. All of the goodwill arising from the acquisitions consist largely of the synergies and economies of scale expected from combining the operations of the Company and the acquired entities. The goodwill acquired was primarily assigned to the Risk and Insurance Services segment. Goodwill allocable to the Company’s reportable segments at June 30, 2019 is as follows: Risk and Insurance Services, $11.6 billion and Consulting, $2.9 billion. The gross cost and accumulated amortization of identified intangible assets at June 30, 2019 and December 31, 2018 are as follows:
| June 30, 2019 |  | December 31, 2018
(In millions) | Gross Cost |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Gross Cost |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Client Relationships | $ | 3,664 |  |  | $ | 765 |  |  | $ | 2,899 |  |  | $ | 1,970 |  |  | $ | 639 |  |  | $ | 1,331 |
Other (a) | 365 |  |  | 181 |  |  | 184 |  |  | 259 |  |  | 153 |  |  | 106 |
Amortized intangibles | $ | 4,029 |  |  | $ | 946 |  |  | $ | 3,083 |  |  | $ | 2,229 |  |  | $ | 792 |  |  | $ | 1,437 |
(a) Primarily non-compete agreements, trade names and developed technology. Aggregate amortization expense for the six months ended June 30, 2019 and 2018 was $151 million and $88 million, respectively. The estimated future aggregate amortization expense is as follows:
For the Years Ending December 31, |
(In millions) | Estimated Expense |
2019 (excludes amortization through June 30, 2019) | $ | 194 |
2020 | 371 |
2021 | 359 |
2022 | 345 |
2023 | 336 |
Subsequent years | 1,478 |
| $ | 3,083 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration