Arthur J. Gallagher & Co. Announces Fourth Quarter and Full Year 2022 Financial Results

Summary of Financial Results - Fourth Quarter

Revenues Before

Diluted Net Earnings

 Reimbursements

Net Earnings (Loss)

EBITDAC

(Loss) Per Share

Segment

4th Q 22

4th Q 21

4th Q 22

4th Q 21

4th Q 22

4th Q 21

4th Q 22

4th Q 21

(in millions)

(in millions)

(in millions)

Brokerage, as reported

$    1,704.3

$   1,467.4

$    143.3

$   171.0

$   457.6

$   417.6

$         0.66

$         0.79

Net gains on divestitures

(9.2)

(9.9)

(7.0)

(8.0)

(9.2)

(9.9)

(0.03)

(0.04)

Acquisition integration

-

-

34.7

12.7

45.6

15.6

0.16

0.06

Workforce and lease termination

-

-

21.1

6.1

27.8

7.4

0.10

0.03

Acquisition related adjustments

-

-

83.2

44.9

9.1

7.8

0.39

0.21

Amortization of intangible assets

-

-

88.2

81.9

-

-

0.40

0.39

Effective income tax rate impact

-

-

4.4

-

-

-

0.02

-

Levelized foreign currency

   translation

-

(51.8)

-

(10.6)

-

(15.1)

-

(0.05)

Brokerage, as adjusted  *

1,695.1

1,405.7

367.9

298.0

530.9

423.4

1.70

1.39

Risk Management, as reported

290.6

254.3

36.4

24.6

53.8

46.0

0.17

0.12

Net gains on divestitures

(0.9)

-

(0.6)

-

(0.9)

-

-

-

Workforce and lease termination

-

-

2.0

1.0

2.8

1.3

0.01

-

Acquisition related adjustments

-

-

(4.6)

0.1

0.1

0.1

(0.02)

-

Amortization of intangible assets

-

-

1.1

1.2

-

-

-

-

Levelized foreign currency

   translation

-

(5.0)

-

(0.9)

-

(1.5)

-

(0.01)

Risk Management, as adjusted  *

289.7

249.3

34.3

26.0

55.8

45.9

0.16

0.11

Corporate, as reported

0.3

219.7

(44.2)

(74.7)

(59.3)

(86.0)

(0.20)

(0.40)

Transaction-related costs

-

-

5.1

21.6

5.7

26.7

0.02

0.10

Legal and tax related

-

-

(31.2)

19.4

(5.0)

9.5

(0.14)

0.10

Corporate, as adjusted  *

0.3

219.7

(70.3)

(33.7)

(58.6)

(49.8)

(0.32)

(0.20)

Total Company, as reported

$    1,995.2

$   1,941.4

$    135.5

$   120.9

$   452.1

$   377.6

$         0.63

$         0.51

Total Company, as adjusted  *

$    1,985.1

$   1,874.7

$    331.9

$   290.3

$   528.1

$   419.5

$         1.54

$         1.30

Total Brokerage & Risk 

Management, as reported

$    1,994.9

$   1,721.7

$    179.7

$   195.6

$   511.4

$   463.6

$         0.83

$         0.91

Total Brokerage & Risk 

Management, as adjusted  *

$    1,984.8

$   1,655.0

$    402.2

$   324.0

$   586.7

$   469.3

$         1.87

$         1.50

*   For fourth quarter 2022, the pretax impact of the Brokerage segment adjustments totals $289.5 million, with a corresponding adjustment to the provision for income taxes of $64.9 million relating to these items.  For fourth quarter 2022, the pretax impact of the Risk Management segment adjustments totals $(2.9) million, with a corresponding adjustment to the provision for income taxes of $(0.8) million relating to these items.  For fourth quarter 2022, the pretax impact of the Corporate segment adjustments totals $0.7 million, with a corresponding adjustment to the benefit for income taxes of $26.8 million relating to these items and the other tax items noted on page 7.  A detailed reconciliation of the 2022 and 2021 provision (benefit) for income taxes is shown on pages 14 and 15. 

Summary of Financial Results - Year Ended December 31,

Revenues Before

Diluted Net Earnings

 Reimbursements

Net Earnings (Loss)

EBITDAC

(Loss) Per Share

Segment

Year 22

Year 21

Year 22

Year 21

Year 22

Year 21

Year 22

Year 21

(in millions)

(in millions)

(in millions)

Brokerage, as reported

$    7,303.8

$   5,967.5

$  1,201.8

$      1,016.6

$   2,239.2

$  1,957.2

$         5.58

$         4.86

Net gains on divestitures

(12.1)

(18.8)

(9.5)

(15.0)

(12.1)

(18.8)

(0.05)

(0.07)

Acquisition integration

-

-

132.7

25.2

167.9

31.7

0.62

0.12

Workforce and lease termination

-

-

40.2

18.0

48.9

20.6

0.19

0.09

Acquisition related adjustments

-

-

56.0

86.4

46.8

27.4

0.26

0.42

Amortization of intangible assets

-

-

342.3

312.0

-

-

1.59

1.50

Levelized foreign currency

   translation

-

(157.2)

-

(28.2)

-

(41.1)

-

(0.14)

Brokerage, as adjusted  *

7,291.7

5,791.5

1,763.5

1,415.0

2,490.7

1,977.0

8.19

6.78

Risk Management, as reported

1,092.6

967.6

115.8

89.5

193.8

177.1

0.54

0.43

Net gains on divestitures

(0.9)

(0.1)

(0.6)

(0.1)

(0.9)

(0.1)

-

-

Workforce and lease termination

-

-

4.8

6.0

6.4

7.1

0.02

0.03

Acquisition related adjustments

-

-

(5.8)

2.1

0.4

0.4

(0.03)

0.01

Acquisition integration

-

-

1.4

-

1.8

-

0.01

-

Amortization of intangible assets

-

-

4.6

5.7

-

-

0.02

0.03

Levelized foreign currency

   translation

-

(14.7)

-

(2.1)

-

(3.5)

-

(0.01)

Risk Management, as adjusted  *

1,091.7

952.8

120.2

101.0

201.5

181.0

0.56

0.49

Corporate, as reported

23.7

1,141.3

(201.6)

(151.1)

(166.5)

(231.0)

(0.93)

(0.92)

Loss on extinguishment of debt

-

-

-

12.2

-

-

-

0.06

Transaction-related costs

-

-

30.7

38.5

33.4

47.9

0.14

0.19

Legal and tax related

-

-

(50.2)

43.6

(5.0)

9.5

(0.23)

0.21

Corporate, as adjusted  *

23.7

1,141.3

(221.1)

(56.8)

(138.1)

(173.6)

(1.02)

(0.46)

Total Company, as reported

$    8,420.1

$   8,076.4

$  1,116.0

$         955.0

$   2,266.5

$  1,903.3

$         5.19

$         4.37

Total Company, as adjusted  *

$    8,407.1

$   7,885.6

$  1,662.6

$      1,459.3

$   2,554.1

$  1,984.4

$         7.74

$         6.81

Total Brokerage & Risk 

Management, as reported

$    8,396.4

$   6,935.1

$  1,317.6

$      1,106.1

$   2,433.0

$  2,134.3

$         6.12

$         5.29

Total Brokerage & Risk 

Management, as adjusted  *

$    8,383.4

$   6,744.3

$  1,883.7

$      1,516.1

$   2,692.2

$  2,158.0

$         8.75

$         7.27

*

For the year ended December 31, 2022, the pretax impact of the Brokerage segment adjustments totals $732.9 million, with a corresponding adjustment to the provision for income taxes of $171.2 million relating to these items.  For the year ended December 31, 2022, the pretax impact of the Risk Management segment adjustments totals $5.8 million, with a corresponding adjustment to the provision for income taxes of $1.4 million relating to these items.  For the year ended December 31, 2022, the pretax impact of the Corporate segment adjustments totals $28.4 million, with a corresponding adjustment to the benefit for income taxes of $47.9 million relating to these items and the other tax items noted on page 7.  A detailed reconciliation of the 2022 and 2021 provision (benefit) for income taxes is shown on pages 14 and 15. 

Organic Revenues (Non-GAAP)

4th Q 2022

4th Q 2021

Year 2022

Year 2021

Base Commissions and Fees

Commissions and fees, as reported

$         1,518.2

$         1,327.1

$         6,664.3

$         5,429.2

Less commissions and fees from acquisitions 

(105.3)

-

(883.2)

-

Less divested operations 

-

-

-

(2.2)

Levelized foreign currency translation

-

(47.5)

-

(143.6)

Organic base commissions and fees

$         1,412.9

$         1,279.6

$         5,781.1

$         5,283.4

Organic change in base commissions and fees 

10.4 %

9.4 %

Supplemental Revenues

Supplemental revenues, as reported

$              80.0

$              65.7

$            284.7

$            248.7

Less supplemental revenues from acquisitions

(0.8)

-

(2.2)

-

Levelized foreign currency translation

-

(2.2)

-

(6.6)

Organic supplemental revenues

$              79.2

$              63.5

$            282.5

$            242.1

Organic change in supplemental revenues

24.7 %

16.7 %

Contingent Revenues

Contingent revenues, as reported

$              40.2

$              37.7

$            207.3

$            188.0

Less contingent revenues from acquisitions

(0.6)

-

(3.0)

-

Levelized foreign currency translation

-

(0.3)

-

(1.5)

Organic contingent revenues  

$              39.6

$              37.4

$            204.3

$            186.5

Organic change in contingent revenues

5.9 %

9.5 %

Total reported commissions, fees, supplemental

revenues and contingent revenues

$         1,638.4

$         1,430.5

$         7,156.3

$         5,865.9

Less commissions, fees, supplemental revenues

and contingent revenues from acquisitions 

(106.7)

-

(888.4)

-

Less divested operations

-

-

-

(2.2)

Levelized foreign currency translation

-

(50.0)

-

(151.7)

Total organic commissions, fees, supplemental

revenues and contingent revenues  

$         1,531.7

$         1,380.5

$         6,267.9

$         5,712.0

Total organic change 

*

11.0 %

9.7 %

*

During the fourth quarter, Gallagher completed its annual review of ASC 606 assumptions resulting in the additional recognition of certain deferred revenues.  Controlling for this, fourth quarter organic growth would have been 10.0%.

Acquisition Activity

4th Q 2022

4th Q 2021

Year 2022

Year 2021

Number of acquisitions closed  *

17

19

36

36

Estimated annualized revenues acquired (in millions)

$       141.3

$       812.1

$       244.0

$       952.0

*   In the fourth quarter of 2022, Gallagher issued 635,000 shares of its common stock directly to sellers in connection with acquisitions.

Compensation Expense and Ratios

4th Q 2022

4th Q 2021

Year 2022

Year 2021

Compensation expense, as reported

$            963.3

$            829.4

$         4,024.7

$         3,252.4

Acquisition integration 

(25.9)

(10.4)

(107.4)

(22.3)

Workforce and lease termination related charges

(21.0)

(6.9)

(36.9)

(16.2)

Acquisition related adjustments

(9.1)

(7.8)

(46.8)

(27.4)

Levelized foreign currency translation

-

(29.9)

-

(90.5)

Compensation expense, as adjusted

$            907.3

$            774.4

$         3,833.6

$         3,096.0

Reported compensation expense ratios using reported 

revenues on pages 1 and 2

*

56.5 %

56.5 %

55.1 %

54.5 %

Adjusted compensation expense ratios using adjusted 

revenues on pages 1 and 2 

**

53.5 %

55.1 %

52.6 %

53.5 %

*

Reported fourth quarter 2022 compensation ratio was flat compared to fourth quarter 2021.  This ratio was primarily impacted by increased integration costs and workforce related charges, as well as the hiring of producers and other roles to service and support higher organic growth, offset by savings related to back office headcount controls and lesser employee benefits costs.

**

Adjusted fourth quarter 2022 compensation ratio was 1.6 pts lower than fourth quarter 2021.  This ratio was primarily impacted by savings related to back office headcount controls and reduced employee benefits costs, offset by the hiring of producers and other roles to service and support higher organic growth.

Operating Expense and Ratios

4th Q 2022

4th Q 2021

Year 2022

Year 2021

Operating expense, as reported 

$            283.4

$            220.4

$         1,039.9

$            757.9

Acquisition integration 

(19.7)

(5.2)

(60.5)

(9.4)

Workforce and lease termination related charges

(6.8)

(0.5)

(12.0)

(4.4)

Levelized foreign currency translation

-

(6.8)

-

(25.6)

Operating expense, as adjusted

$            256.9

$            207.9

$            967.4

$            718.5

Reported operating expense ratios using reported 

revenues on pages 1 and 2

*

16.6 %

15.0 %

14.2 %

12.7 %

Adjusted operating expense ratios using adjusted 

revenues on pages 1 and 2 

**

15.2 %

14.8 %

13.3 %

12.4 %

*

Reported fourth quarter operating expense ratio was 1.6 pts higher compared to fourth quarter 2021.  This ratio was primarily impacted by increased integration costs, lease termination related charges and a seasonally higher operating ratio related to the reinsurance operations acquired in December 2021, as well as the return of advertising, travel, entertainment and other client-related expenses and additional investments in technology.  These expenses were offset in part by savings from office consolidations.

**

Adjusted fourth quarter operating expense ratio was 0.4 pts higher compared to fourth quarter 2021.  This ratio was primarily impacted by the return of advertising, travel, entertainment and other client-related expenses, as well as additional investments in technology and a seasonally higher operating expense ratio related to the reinsurance operations acquired in December 2021.  These expenses were offset in part by savings from office consolidations.

Net Earnings to Adjusted EBITDAC (Non-GAAP)

4th Q 2022

4th Q 2021

Year 2022

Year 2021

Net earnings, as reported

$            143.3

$            171.0

$         1,201.8

$         1,016.6

Provision for income taxes

53.2

60.0

394.7

328.9

Depreciation

26.9

22.8

103.6

87.8

Amortization

115.9

107.4

448.7

407.6

Change in estimated acquisition earnout payables

118.3

56.4

90.4

116.3

EBITDAC 

457.6

417.6

2,239.2

1,957.2

Net gains on divestitures

(9.2)

(9.9)

(12.1)

(18.8)

Acquisition integration

45.6

15.6

167.9

31.7

Workforce and lease termination related charges

27.8

7.4

48.9

20.6

Acquisition related adjustments

9.1

7.8

46.8

27.4

Levelized foreign currency translation

-

(15.1)

-

(41.1)

EBITDAC, as adjusted 

$            530.9

$            423.4

$         2,490.7

$         1,977.0

Net earnings margin, as reported using reported 

revenues on pages 1 and 2 

8.4 %

11.7 %

16.5 %

17.0 %

EBITDAC margin, as adjusted using adjusted 

revenues on pages 1 and 2 

31.3 %

30.1 %

34.2 %

34.1 %

Organic Revenues (Non-GAAP)

4th Q 2022

4th Q 2021

Year 2022

Year 2021

Fees

$            286.0

$            250.8

$         1,075.8

$            954.0

International performance bonus fees 

3.2

3.4

15.0

13.2

Fees as reported

289.2

254.2

1,090.8

967.2

Less fees from acquisitions

(1.4)

-

(12.0)

-

Less divested operations

-

(0.3)

-

(0.3)

Levelized foreign currency translation

-

(5.0)

-

(14.7)

Organic fees 

$            287.8

$            248.9

$         1,078.8

$            952.2

Organic change in fees

15.6 %

13.3 %

Acquisition Activity

4th Q 2022

4th Q 2021

Year 2022

Year 2021

Number of acquisitions closed 

-

-

1

2

Estimated annualized revenues acquired (in millions)

$             -

$             -

$           2.5

$         50.0

Compensation Expense and Ratios

4th Q 2022

4th Q 2021

Year 2022

Year 2021

Compensation expense, as reported

$            177.8

$            151.8

$            664.9

$            580.7

Acquisition integration

-

-

(0.3)

-

Workforce and lease termination related charges

(2.5)

(0.8)

(4.0)

(2.3)

Acquisition related adjustments

(0.1)

(0.1)

(0.4)

(0.4)

Levelized foreign currency translation

-

(2.9)

-

(9.1)

Compensation expense, as adjusted

$            175.2

$            148.0

$            660.2

$            568.9

Reported compensation expense ratios using reported 

revenues (before reimbursements) on pages 1 and 2

*

61.2 %

59.7 %

60.9 %

60.0 %

Adjusted compensation expense ratios using adjusted 

revenues (before reimbursements) on pages 1 and 2

**

60.5 %

59.4 %

60.5 %

59.7 %

*

Reported fourth quarter 2022 compensation ratio was 1.5 pts higher compared to fourth quarter 2021.  This ratio was primarily impacted by workforce related charges, merit wage increases, increased incentive compensation and additional claim adjusters to support a large new client and other higher organic growth, partially offset by savings in temporary help.

**

Adjusted fourth quarter 2022 compensation ratio was 1.1 pts higher compared to fourth quarter 2021.  This ratio was primarily impacted by merit wage increases, increased incentive compensation and additional claim adjusters to support a large new client and other higher organic growth, partially offset by savings in temporary help.

Operating Expense and Ratios

4th Q 2022

4th Q 2021

Year 2022

Year 2021

Operating expense, as reported 

$              59.0

$              56.5

$            233.9

$            209.8

Workforce and lease termination related charges

(0.3)

(0.5)

(2.4)

(4.8)

Acquisition integration 

-

-

(1.5)

-

Levelized foreign currency translation

-

(0.6)

-

(2.1)

Operating expense, as adjusted

$              58.7

$              55.4

$            230.0

$            202.9

Reported operating expense ratios using reported

revenues (before reimbursements) on pages 1 and 2

*

20.3 %

22.2 %

21.4 %

21.7 %

Adjusted operating expense ratios using reported

revenues (before reimbursements) on pages 1 and 2

*

20.3 %

22.2 %

21.1 %

21.3 %

*

Reported and adjusted fourth quarter operating expense ratios were 1.9 pts lower compared to fourth quarter 2021.  Both ratios were impacted by savings across multiple categories, including office consolidations, technology, business insurance and professional fees.  These expenses were offset in part by increased client-related expenses.

Net Earnings to Adjusted EBITDAC (Non-GAAP)

4th Q 2022

4th Q 2021

Year 2022

Year 2021

Net earnings, as reported

$              36.4

$              24.6

$            115.8

$              89.5

Provision for income taxes

13.1

8.5

41.4

30.6

Depreciation

9.0

11.1

37.8

46.2

Amortization

1.5

1.6

6.2

7.5

Change in estimated acquisition earnout payables

(6.2)

0.2

(7.4)

3.3

EBITDAC

53.8

46.0

193.8

177.1

Net gains on divestitures

(0.9)

-

(0.9)

(0.1)

Workforce and lease termination related charges

2.8

1.3

6.4

7.1

Acquisition related adjustments

0.1

0.1

0.4

0.4

Acquisition integration 

-

-

1.8

-

Levelized foreign currency translation

-

(1.5)

-

(3.5)

EBITDAC, as adjusted 

$              55.8

$              45.9

$            201.5

$            181.0

Net earnings margin, as reported using reported 

revenues (before reimbursements) on pages 1 and 2 

12.5 %

9.7 %

10.6 %

9.3 %

EBITDAC margin, as adjusted using adjusted 

revenues (before reimbursements) on pages 1 and 2 

19.3 %

18.4 %

18.5 %

19.0 %

2022

2021

Net Earnings

Net Earnings

(Loss)

(Loss)

Income

Attributable to

Income

Attributable to

Pretax

Tax

Controlling

Pretax

Tax

Controlling

4th Quarter

Loss

Benefit

Interests

Loss

Benefit

Interests

Components of Corporate Segment, as reported

Interest and banking costs

$     (64.7)

$       16.7

$            (48.0)

$     (62.2)

$       15.5

$            (46.7)

Clean energy related (1)

(3.8)

1.1

(2.7)

(40.7)

53.1

12.4

Acquisition costs (2) 

(10.5)

1.1

(9.4)

(28.6)

5.3

(23.3)

Corporate (3) (4)

(43.9)

60.9

17.0

(28.3)

2.5

(25.8)

Reported 4th Quarter

(122.9)

79.8

(43.1)

(159.8)

76.4

(83.4)

Adjustments

Transaction-related costs (2) 

5.7

(0.6)

5.1

26.7

(5.1)

21.6

Legal and income tax related (3)

(5.0)

(26.2)

(31.2)

9.5

9.9

19.4

Components of Corporate Segment, as adjusted

Interest and banking costs

(64.7)

16.7

(48.0)

(62.2)

15.5

(46.7)

Clean energy related (1)

(3.8)

1.1

(2.7)

(40.7)

53.1

12.4

Acquisition costs

(4.8)

0.5

(4.3)

(1.9)

0.2

(1.7)

Corporate (4)

(48.9)

34.7

(14.2)

(18.8)

12.4

(6.4)

Adjusted 4th Quarter

$   (122.2)

$       53.0

$            (69.2)

$   (123.6)

$       81.2

$            (42.4)

Year Ended

Interest and banking costs 

$   (259.4)

$       67.3

$          (192.1)

$   (245.9)

$       61.4

$          (184.5)

Clean energy related (1)

(12.6)

3.4

(9.2)

(135.4)

232.8

97.4

Acquisition costs (2) 

(44.9)

3.7

(41.2)

(54.9)

9.5

(45.4)

Corporate (3) (4)

(107.2)

150.7

43.5

(94.1)

35.7

(58.4)

Reported Year Ended 

(424.1)

225.1

(199.0)

(530.3)

339.4

(190.9)

Adjustments

Loss on extinguishment of debt (2)

-

-

-

16.2

(4.0)

12.2

Transaction-related costs (2) 

33.4

(2.7)

30.7

47.9

(9.4)

38.5

Legal and income tax related (3)

(5.0)

(45.2)

(50.2)

9.5

34.1

43.6

Components of Corporate Segment, as adjusted

Interest and banking costs

(259.4)

67.3

(192.1)

(229.7)

57.4

(172.3)

Clean energy related (1)

(12.6)

3.4

(9.2)

(135.4)

232.8

97.4

Acquisition costs 

(11.5)

1.0

(10.5)

(7.0)

0.1

(6.9)

Corporate (4)

(112.2)

105.5

(6.7)

(84.6)

69.8

(14.8)

Adjusted Year Ended

$   (395.7)

$     177.2

$          (218.5)

$   (456.7)

$     360.1

$            (96.6)

(1)

Pretax loss for the fourth quarter is presented net of amounts attributable to noncontrolling interests of $(1.1) million in 2022 and $8.7 million in 2021.  Pretax loss for the year ended December 31, is presented net of amounts attributable to noncontrolling interests of $(2.6) million in 2022 and $39.8 million in 2021. 

(2)

Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees primarily associated with our acquisition of the Willis Towers Watson treaty reinsurance brokerage operations and the pending acquisition of Buck, which was announced on December 20, 2022. In third quarter 2021, Gallagher redeemed $650 million of 2031 Senior Notes and incurred a loss of $16.2 million related to the early extinguishment of such debt.

(3)

Adjustments in fourth quarter 2022 include (a) additional U.K. income tax expense related to the non–deductibility of acquisition-related adjustments made in the quarter, (b) gains and costs associated with legal and tax matters, (c) income tax provision adjustments as we filed our 2021 tax returns and (d) income tax benefit related to adjusting certain U.K. deferred income tax assets to the future 25% corporate income tax rate. Adjustments in fourth quarter 2021 include (a) additional U.K. and U.S. income tax expense related to the non-deductibility of acquisition related adjustments made in the quarter, (b) costs related to a legal settlement and (c) income tax adjustments as we filed our 2020 tax returns in the fourth quarter and finalized our 2021 income tax provisions within the U.S. and foreign jurisdictions where we operate.

(4)

Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $3.0 million in fourth quarter 2022 and a net unrealized foreign exchange remeasurement gain of $1.5 million in fourth quarter 2021.  Corporate pretax loss includes a net unrealized foreign exchange remeasurement gain of $30.6 million in the year ended December 31, 2022 and a net unrealized foreign exchange remeasurement loss of $0.9 million in the year ended December 31, 2021. 

Arthur J. Gallagher & Co.

Reported Statement of Earnings and EBITDAC - 4th Quarter and Year Ended December 31,

(Unaudited - in millions except per share, percentage and workforce data)

4th Q Ended

4th Q Ended

Year Ended

Year Ended

Brokerage Segment 

Dec 31, 2022

Dec 31, 2021

Dec 31, 2022

Dec 31, 2021

Commissions

$          1,152.8

$          1,013.6

$          5,187.4

$          4,132.3

Fees

365.4

313.5

1,476.9

1,296.9

Supplemental revenues 

80.0

65.7

284.7

248.7

Contingent revenues

40.2

37.7

207.3

188.0

Investment income and net gains on divestitures

65.9

36.9

147.5

101.6

     Total revenues 

1,704.3

1,467.4

7,303.8

5,967.5

Compensation

963.3

829.4

4,024.7

3,252.4

Operating

283.4

220.4

1,039.9

757.9

Depreciation

26.9

22.8

103.6

87.8

Amortization

115.9

107.4

448.7

407.6

Change in estimated acquisition earnout payables

118.3

56.4

90.4

116.3

     Expenses 

1,507.8

1,236.4

5,707.3

4,622.0

Earnings before income taxes

196.5

231.0

1,596.5

1,345.5

Provision for income taxes  

53.2

60.0

394.7

328.9

Net earnings 

143.3

171.0

1,201.8

1,016.6

Net earnings attributable to noncontrolling interests

1.1

2.8

4.4

8.4

Net earnings attributable to controlling interests

$             142.2

$             168.2

$          1,197.4

$          1,008.2

EBITDAC 

Net earnings

$             143.3

$             171.0

$          1,201.8

$          1,016.6

Provision for income taxes

53.2

60.0

394.7

328.9

Depreciation

26.9

22.8

103.6

87.8

Amortization

115.9

107.4

448.7

407.6

Change in estimated acquisition earnout payables

118.3

56.4

90.4

116.3

EBITDAC

$             457.6

$             417.6

$          2,239.2

$          1,957.2

4th Q Ended

4th Q Ended

Year Ended