Schedule II. Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2018

Schedule II

Arthur J. Gallagher & Co.

Valuation and Qualifying Accounts


	Balance at Beginning of Year		Amounts Recorded in Earnings			Adjustments			Balance at End of Year
	(In millions)
Year ended December 31, 2018
Allowance for doubtful accounts	$	13.5	$	5.8		$	(9.3	) (1)	$	10.0
Allowance for estimated policy cancellations		7.4		(1.2	)		1.6	(2)		7.8
Valuation allowance for deferred tax assets		79.1		(11.7	)		—			67.4
Accumulated amortization of expiration lists, noncompete agreements and trade names		1,490.7		291.3			(31.6	) (3)		1,750.4

Year ended December 31, 2017
Allowance for doubtful accounts	$	12.8	$	5.4		$	(4.7	) (1)	$	13.5
Allowance for estimated policy cancellations		7.1		2.1			(1.8	) (2)		7.4
Valuation allowance for deferred tax assets		66.8		12.3			—			79.1
Accumulated amortization of expiration lists, noncompete agreements and trade names		1,203.6		264.7			22.4	(3)		1,490.7

Year ended December 31, 2016
Allowance for doubtful accounts	$	13.3	$	4.9		$	(5.4	) (1)	$	12.8
Allowance for estimated policy cancellations		7.4		0.2			(0.5	) (2)		7.1
Valuation allowance for deferred tax assets		52.8		14.0			—			66.8
Accumulated amortization of expiration lists, noncompete agreements and trade names		983.9		247.2			(27.5	) (3)		1,203.6

(1)	Net activity of bad debt write offs and recoveries and acquired businesses.

(2)	Additions to allowance related to acquired businesses.

(3)	Elimination of fully amortized expiration lists, non-compete agreements and trade names, intangible asset/amortization reclassifications and disposal of acquired businesses.