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Revenue | 6 Months Ended
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Jun. 30, 2020
Revenue from Contract with Customer [Abstract] |
Revenue | Revenue The core principle of the revenue recognition guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that principle, the entity applies the following steps: identify the contract(s) with the customer, identify the performance obligations in the contract(s), determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. Under the accounting guidance, a performance obligation is satisfied either at a “point in time” or “over time” depending on the nature of the product or service provided, and the specific terms of the contract with customers. The Company's revenue recognition guidance is provided in more detail in Note 3 of the consolidated financial statements and the notes thereto included in 2019 Form 10-K for the year ended December 31, 2019. The following schedule disaggregates components of the Company's revenue:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2020 | 2019 |  | 2020 | 2019
Marsh: |  |  |  |  |  |
EMEA |  | $ | 597 |  | $ | 652 |  |  | $ | 1,351 |  | $ | 1,285 |
Asia Pacific |  | 298 |  | 291 |  |  | 536 |  | 456 |
Latin America |  | 99 |  | 116 |  |  | 190 |  | 194 |
Total International |  | 994 |  | 1,059 |  |  | 2,077 |  | 1,935 |
U.S./Canada |  | 1,167 |  | 1,097 |  |  | 2,145 |  | 1,958 |
Total Marsh |  | 2,161 |  | 2,156 |  |  | 4,222 |  | 3,893 |
Guy Carpenter |  | 433 |  | 392 |  |  | 1,260 |  | 1,055 |
Subtotal |  | 2,594 |  | 2,548 |  |  | 5,482 |  | 4,948 |
Fiduciary interest income |  | 9 |  | 26 |  |  | 32 |  | 49 |
Total Risk and Insurance Services |  | $ | 2,603 |  | $ | 2,574 |  |  | $ | 5,514 |  | $ | 4,997 |
Mercer: |  |  |  |  |  |
Wealth |  | $ | 561 |  | $ | 613 |  |  | $ | 1,153 |  | $ | 1,156 |
Health |  | 432 |  | 458 |  |  | 918 |  | 900 |
Career |  | 156 |  | 189 |  |  | 329 |  | 359 |
Total Mercer |  | 1,149 |  | 1,260 |  |  | 2,400 |  | 2,415 |
Oliver Wyman |  | 467 |  | 540 |  |  | 978 |  | 1,058 |
Total Consulting |  | $ | 1,616 |  | $ | 1,800 |  |  | $ | 3,378 |  | $ | 3,473 |
The Company recognizes commission revenue from arrangements for a significant portion of its brokerage arrangements at a point in time at effective date of the underlying policy. Commission revenue is estimated using historical information about the risks to be covered over the policy period, some of which are dependent on variable factors such as number of employees covered, covered payroll, airline passenger miles flown, shipped tonnage of marine cargo and others. The following schedule provides contract assets and contract liabilities information from contracts with customers.
(In millions) |  | June 30, 2020 |  | December 31, 2019
Contract Assets |  | $ | 298 |  |  | $ | 207 |
Contract Liabilities |  | $ | 696 |  |  | $ | 593 |
The Company records accounts receivable when the right to consideration is unconditional, subject only to the passage of time. Contract assets primarily relate to quota share reinsurance brokerage and contingent insurer revenue. The Company does not have the right to bill and collect revenue for quota share brokerage until the underlying policies written by the ceding insurer attach to the treaty. Contract assets are included in other current assets in the Company's consolidated balance sheet. Contract liabilities primarily relate to the advance consideration received from customers. Contract liabilities are included in current liabilities in the Company's consolidated balance sheet. Revenue recognized in the first six months of 2020 and 2019 that was included in the contract liability balance at the beginning of each of those years was $418 million and $307 million, respectively. The amount of revenue recognized in the first six months of 2020 and 2019 from performance obligations satisfied in previous periods, mainly due to variable consideration from contracts with insurers, quota share business and consulting contracts previously considered constrained was $67 million and $36 million, respectively. During the second quarter of 2020, the Company recorded a revenue reduction of $36 million for estimated commission revenue accounted for on a point in time basis. The reduction relates to policy periods incepted from the third quarter of 2019 through the second quarter of 2020. Insurance exposures subject to variable factors described above are subject to mid-term and end of term adjustments, as well as policy audits, which may reduce premiums and corresponding commissions. Estimates were updated based on internal data and industry specific economic data. Approximately $33 million of the revenue reduction is related to Marsh in the U.S. and EMEA geographies. Mercer’s revenue was reduced by approximately $3 million in the Health segment. The Company applies the practical expedient and therefore does not disclose the value of unsatisfied performance obligations for (1) contracts with original contract terms of one year or less and (2) contracts where the Company has the right to invoice for services performed. The revenue expected to be recognized in future periods during the non-cancellable term of existing contracts greater than one year that is related to performance obligations that are unsatisfied or partially satisfied at the end of the reporting period is approximately $51 million for Marsh, $220 million for Mercer and $2 million for Oliver Wyman. The Company expects revenue in 2021, 2022, 2023, 2024 and 2025 and beyond of $146 million, $71 million, $36 million, $14 million and $6 million, respectively, related to these performance obligations.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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