Summary
Marsh & McLennan Companies, Inc. (MMC) filed a Form 8-K on September 5, 2008, to announce a change in its financial reporting for segment performance. Specifically, investment gains and losses from investments strategically linked to operating companies will no longer be included in segment revenue and segment operating income. These gains and losses will now be reported separately as "Investment income (loss)". This change impacts the presentation of segment revenue and operating income, as well as related cash flows, and requires amendments to specific sections of MMC's Annual Report on Form 10-K for the fiscal year ended December 31, 2007. Investors should note this shift in how investment performance is recognized and how it affects the core operating metrics used to evaluate segment performance and resource allocation.
Key Highlights
- 1Marsh & McLennan Companies (MMC) is changing how it reports segment performance.
- 2Investment gains and losses from strategically linked investments will be excluded from segment revenue and segment operating income.
- 3These investment gains/losses will now be reported as a separate line item: "Investment income (loss)".
- 4This change will be reflected in amended sections of MMC's 2007 Form 10-K, including Selected Financial Data, MD&A, and Financial Statements.
- 5The amendment is intended to provide a clearer view of operating company performance by separating investment income.
- 6Related cash flow presentations in the consolidated statements of cash flows are also being adjusted.
- 7The filing includes a consent from Deloitte & Touche LLP, the company's auditor.