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Restructuring Costs | 9 Months Ended
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Sep. 30, 2019
Restructuring and Related Activities [Abstract] |
Restructuring Costs | Restructuring Costs JLT Related Integration and Restructuring The Company has begun its integration and restructuring activities related to JLT. The process will involve combining the business practices and co-locating colleagues in most geographies, rationalization of real estate leases around the world, realization of synergies and migration of legacy JLT systems onto MMC’s information technology environment and security protocols, consulting fees related to integration management processes and legal fees related to the rationalization of legal entity structures that will reduce costs, mitigate risks and improve operational transparency. Costs will be recognized based on applicable accounting guidance which includes accounting for disposal or exit activities, guidance related to impairment of long lived assets (for right of use assets related to real estate leases), as well as other costs resulting from accelerated depreciation or amortization of leasehold improvements and other property and equipment. Based on its current estimates, the Company expects to incur costs of at least $375 million in connection with the integration and restructuring of the combined businesses, primarily related to severance, real estate rationalization, technology, consulting fees related to the management of the integration processes and legal fees related to the rationalization of legal entity structures. The Company expects to incur these costs over a three- year period, and has incurred $192 million to date. These integration and restructuring plans are still developing, and these estimates may change as the Company completes its detailed plans for each business and location. In connection with the JLT integration and restructuring, in the third quarter of 2019, the Company incurred costs of $77 million: $58 million in RIS, $5 million in Consulting, and $14 million in Corporate. For the nine month period ended September 30, 2019, costs incurred were $134 million in RIS, $10 million in Consulting, and $48 million in Corporate. The severance and related costs were included in compensation and benefits and the other costs were included in other operating expenses in the consolidated statement of income. Details of the JLT integration and restructuring activity from January 1, 2019 through September 30, 2019, is as follows:
(In millions) | Severance |  | Real Estate Related Costs (a) |  | Information Technology (a) |  | Consulting and Other Outside Services (b) |  | Total
Liability at 1/1/19 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2019 Charges | 92 |  |  | 21 |  |  | 9 |  |  | 70 |  |  | 192 |
Cash payments | (59 | ) |  | (5 | ) |  | (9 | ) |  | (70 | ) |  | (143 | )
Non-cash charges | — |  |  | (7 | ) |  | — |  |  | — |  |  | (7 | )
Liability at 9/30/19 | $ | 33 |  |  | $ | 9 |  |  | $ | — |  |  | $ | — |  |  | $ | 42 |
(a) Includes data center contract termination costs and temporary infrastructure leasing costs. (b) Includes consulting fees related to the management of the integration processes and legal fees related to the rationalization of legal entity structures. Other Restructuring During the second quarter of 2018, Marsh initiated a program to simplify the organization through reduced management layers and more common structures across regions and businesses to more closely align with its more formalized segmentation strategy across large risk management, middle market corporate, and small commercial & personal segments. These efforts are expected to create increased efficiencies and additional capacity for reinvestment in people and technology. The Company incurred severance and consulting costs of $6 million for the nine month period ended September 30, 2019, related to this initiative. During the fourth quarter of 2018, Mercer initiated a program to restructure its business to further optimize the way Mercer operates, setting up the Company for a more fluid and nimble structure and operating model for the future. The Company incurred restructuring severance and consulting costs of $10 million and $43 million for the three and nine month periods, ended September 30, 2019, respectively, related to this initiative. In addition to the changes discussed above, the Company incurred $7 million of restructuring costs related to severance and future rent under non-cancelable leases, primarily in Corporate. Details of the other restructuring activity from January 1, 2018 through September 30, 2019, which includes liabilities from actions prior to 2019, are as follows:
(In millions) | Liability at 1/1/18 |  | Amounts Accrued |  | Cash Paid |  | Other |  | Liability at 12/31/18 |  | Amounts Accrued |  | Cash Paid |  | Other |  | Liability at 9/30/19
Severance | $ | 15 |  |  | $ | 137 |  |  | $ | (77 | ) |  | $ | (2 | ) |  | $ | 73 |  |  | $ | 44 |  |  | $ | (95 | ) |  | $ | (4 | ) |  | $ | 18 |
Future rent under non-cancelable leases and other costs | 50 |  |  | 24 |  |  | (37 | ) |  | 2 |  |  | 39 |  |  | 12 |  |  | (13 | ) |  | (6 | ) |  | $ | 32 |
Total | $ | 65 |  |  | $ | 161 |  |  | $ | (114 | ) |  | $ | — |  |  | $ | 112 |  |  | $ | 56 |  |  | $ | (108 | ) |  | $ | (10 | ) |  | $ | 50 |
The expenses associated with the above initiatives are included in compensation and benefits and other operating expenses in the consolidated statements of income. The liabilities associated with these initiatives are classified on the consolidated balance sheets as accounts payable and accrued liabilities, other liabilities or accrued compensation and employee benefits, depending on the nature of the items. These programs are substantially completed as of September 30, 2019.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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