Schedule II. Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2020

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, 2020
Allowance for doubtful accounts	$	8.7	$	6.6		$	(5.2	)	(1)	$	10.1
Allowance for estimated policy cancellations		8.3		4.1			(2.5	)	(2)		9.9
Valuation allowance for deferred tax assets		80.5		14.4			—				94.9
Accumulated amortization of expiration
lists, non-compete agreements and trade names		2,087.5		417.3			32.2		(3)		2,537.0
Year ended December 31, 2019
Allowance for doubtful accounts	$	10.0	$	4.2		$	(5.5	)	(1)	$	8.7
Allowance for estimated policy cancellations		7.8		0.5			—		(2)		8.3
Valuation allowance for deferred tax assets		67.4		13.1			—				80.5
Accumulated amortization of expiration
lists, non-compete agreements and trade names		1,750.4		334.0			3.1		(3)		2,087.5
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, non-compete agreements and trade names		1,490.7		291.2			(31.5	)	(3)		1,750.4

(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.