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Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Unbilled Receivables, Contract Assets and Contract Liabilities from Contracts with Customers

Information about unbilled receivables, contract assets and contract liabilities from contracts with customers is as follows (in millions):

		June 30, 2018				December 31, 2017, As Restated
Unbilled receivables		$	608.7			$	415.2
Deferred contract costs			55.0				83.3
Deferred revenue			471.8				430.6

Summary of Changes in Deferred Revenue Balances

Significant changes in the deferred revenue balances during the period are as follows (in millions):

		Brokerage				Risk Management				Total
Deferred revenue at December 31, 2017		$	258.7			$	171.9			$	430.6
Incremental deferred revenue			204.1				73.4				277.5
Revenue recognized during the six-month period ended June 30, 2018 included in deferred revenue at December 31, 2017			(181.0	)			(68.2	)			(249.2	)
Deferred revenue recognized from business acquisitions			12.9				—				12.9
Deferred revenue at June 30, 2018		$	294.7			$	177.1			$	471.8

Summary of Expected Revenue Related to Performance Obligations

The estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period is as follows (in millions):

		Brokerage				Risk Management				Total
2018 (remaining six months)		$	224.3			$	69.9			$	294.2
2019			59.6				47.5				107.1
2020			8.2				19.9				28.1
2021			1.7				11.0				12.7
2022			0.4				6.8				7.2
Thereafter			0.5				22.0				22.5
Total		$	294.7			$	177.1			$	471.8

Accounting Standards Update 2014-09 [Member]

Summary of Consolidated Statement Line Items, which Reflect Adoption of New Revenue Recognition Guidance

The consolidated statement of earnings line items, which reflect the adoption of the new revenue recognition guidance, are as follows (in millions, except per share data):

		Three-month period ended June 30, 2017
		As Previously Reported				Impact of Adoption of ASC 606				As Restated for Adoption of ASC 606
Commissions		$	690.2			$	(72.0	)		$	618.2
Fees			410.9				(24.0	)			386.9
Supplemental revenues			41.5				(5.7	)			35.8
Contingent revenues			29.5				(8.2	)			21.3
Investment income			13.6				0.8				14.4
Gains on books of business sales			1.1				—				1.1
Revenues from clean coal activities			376.4				—				376.4
Other net revenues			0.2				—				0.2
Revenues before reimbursements			1,563.4				(109.1	)			1,454.3
Reimbursements			—				35.2				35.2
Total revenues			1,563.4				(73.9	)			1,489.5
Compensation			675.7				(8.8	)			666.9
Operating			211.6				(7.4	)			204.2
Reimbursements			—				35.2				35.2
Cost of revenues from clean coal activities			397.1				—				397.1
Interest			31.6				—				31.6
Depreciation			30.2				—				30.2
Amortization			65.1				—				65.1
Change in estimated acquisition earnout payables			5.1				—				5.1
Total expenses			1,416.4				19.0				1,435.4
Earnings before income taxes			147.0				(92.9	)			54.1
Benefit for income taxes			(33.4	)			9.2				(24.2	)
Net earnings			180.4				(102.1	)			78.3
Net earnings attributable to noncontrolling interests			8.5				(0.2	)			8.3
Net earnings attributable to controlling interests		$	171.9			$	(101.9	)		$	70.0
Basic net earnings per share		$	0.96			$	(0.57	)		$	0.39
Diluted net earnings per share			0.95				(0.56	)			0.39
Dividends declared per common share			0.39				—				0.39

		Six-month period ended June 30, 2017
		As Previously Reported				Impact of Adoption of ASC 606				As Restated for Adoption of ASC 606
Commissions		$	1,280.7			$	98.2			$	1,378.9
Fees			781.4				10.5				791.9
Supplemental revenues			76.0				7.1				83.1
Contingent revenues			82.9				(26.6	)			56.3
Investment income			24.4				2.3				26.7
Gains on books of business sales			2.5				—				2.5
Revenues from clean coal activities			728.2				—				728.2
Revenues before reimbursements			2,976.1				91.5				3,067.6
Reimbursements			—				68.3				68.3
Total revenues			2,976.1				159.8				3,135.9
Compensation			1,333.3				45.4				1,378.7
Operating			412.0				(8.3	)			403.7
Reimbursements			—				68.3				68.3
Cost of revenues from clean coal activities			764.0				—				764.0
Interest			61.5				—				61.5
Depreciation			59.7				—				59.7
Amortization			129.4				—				129.4
Change in estimated acquisition earnout payables			16.9				—				16.9
Total expenses			2,776.8				105.4				2,882.2
Earnings before income taxes			199.3				54.4				253.7
Benefit for income taxes			(48.9	)			(17.7	)			(66.6	)
Net earnings			248.2				72.1				320.3
Net earnings attributable to noncontrolling interests			20.6				0.9				21.5
Net earnings attributable to controlling interests		$	227.6			$	71.2			$	298.8
Basic net earnings per share		$	1.27			$	0.40			$	1.67
Diluted net earnings per share			1.26				0.39				1.65
Dividends declared per common share			0.78				—				0.78

Select consolidated statement of comprehensive earnings line items, which reflect the adoption of the new revenue recognition guidance, are as follows (in millions):

		Three-month period ended June 30, 2017
		As Previously Reported				Impact of Adoption of ASC 606				As Restated for Adoption of ASC 606
Net earnings		$	180.4			$	(102.1	)		$	78.3
Change in pension liability, net of taxes			1.4				—				1.4
Foreign currency translation			33.9				(0.4	)			33.5
Change in fair value of derivative instruments, net of taxes			2.3				—				2.3
Comprehensive earnings			218.0				(102.5	)			115.5
Comprehensive earnings attributable to noncontrolling interests			8.9				(0.2	)			8.7
Comprehensive earnings attributable to controlling interests		$	209.1			$	(102.3	)		$	106.8

		Six-month period ended June 30, 2017
		As Previously Reported				Impact of Adoption of ASC 606				As Restated for Adoption of ASC 606
Net earnings		$	248.2			$	72.1			$	320.3
Change in pension liability, net of taxes			2.6				—				2.6
Foreign currency translation			92.3				(2.9	)			89.4
Change in fair value of derivative instruments, net of taxes			8.8				—				8.8
Comprehensive earnings			351.9				69.2				421.1
Comprehensive earnings attributable to noncontrolling interests			22.6				0.9				23.5
Comprehensive earnings attributable to controlling interests		$	329.3			$	68.3			$	397.6

Select balance sheet line items, which reflect the adoption of the new revenue recognition guidance are as follows (in millions):

		December 31, 2017
		As Previously Reported				Impact of Adoption of ASC 606				As Restated for Adoption of ASC 606
Assets
Premium and fees receivables		$	2,157.2			$	1,925.6			$	4,082.8
Other current assets			708.4				173.2				881.6
Deferred income taxes			905.1				(53.5	)			851.6
Other noncurrent assets			567.0				0.1				567.1
Goodwill			4,197.9				(33.1	)			4,164.8
Liabilities
Premiums payable to underwriting enterprises			3,475.9				1,510.1				4,986.0
Accrued compensation and other current liabilities			864.1				83.7				947.8
Deferred revenue - current/unearned fees			74.8				280.5				355.3
Other current liabilities			56.4				(56.4	)			—
Deferred revenue - noncurrent			—				75.3				75.3
Other noncurrent liabilities			1,128.3				(15.7	)			1,112.6
Stockholders’ equity
Retained earnings			1,095.9				125.9				1,221.8
Accumulated other comprehensive loss			(559.9	)			4.5				(555.4	)
Stockholders’ equity attributable to controlling interests			4,105.2				130.4				4,235.6
Stockholders’ equity attributable to noncontrolling interests			59.7				4.4				64.1

Select consolidated statement of cash flows line items, which reflect the adoption of the new revenue recognition guidance are as follows (in millions):

		Six-month period ended June 30, 2017
		As Previously Reported				Impact of Adoption of ASC 606				As Restated for Adoption of ASC 606
Cash flows from operating activities
Net earnings		$	248.2			$	72.1			$	320.3
Adjustments to reconcile net earnings to net cash provided by operating activities:
Net change in premiums and fees receivable			(478.7	)			(1,055.7	)			(1,534.4	)
Net change in deferred revenue			—				29.7				29.7
Net change in premiums payable to underwriting enterprises			445.1				934.3				1,379.4
Net change in other current assets			(17.4	)			50.7				33.3
Net change in accrued compensation and other current liabilities			(77.0	)			19.2				(57.8	)
Net change in deferred income taxes			(72.9	)			(17.6	)			(90.5	)
Net change in other noncurrent assets and liabilities			(18.4	)			(1.8	)			(20.2	)

Select statement of stockholders’ equity items, which reflect the adoption of the new revenue recognition guidance are as follows (in millions):

		Retained Earnings				Accumulated Other Comprehensive Earnings (Loss)				Stockholders’ Equity Attributable to Noncontrolling Interests				Total Stockholders’ Equity
Balance at December 31, 2017, as reported		$	1,095.9			$	(559.9	)		$	59.7			$	4,164.9
Cumulative-effect adjustment due to ASC Topic 606 as of December 31, 2017			125.9				4.5				4.4				134.8
Balance at December 31, 2017, as restated		$	1,221.8			$	(555.4	)		$	64.1			$	4,299.7

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