v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair Value Hierarchy
The Company has categorized its assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy, for disclosure purposes, is determined based on the lowest level input that is significant to the fair value measurement. Assets and liabilities recorded in the consolidated balance sheets at fair value are categorized based on the inputs in the valuation techniques as follows:
Level 1.Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market (examples include active exchange-traded equity securities and exchange-traded money market mutual funds).
Assets and liabilities measured using Level 1 inputs include exchange-traded equity securities, exchange-traded mutual funds and money market funds.
Level 2.Assets and liabilities whose values are based on the following:
a)quoted prices for similar assets or liabilities in active markets;
b)quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently);
c)pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and
d)pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full asset or liability (for example, certain mortgage loans).
Level 3.Assets and liabilities whose values are based on prices, or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
Assets and liabilities measured using Level 3 inputs relate to assets and liabilities for contingent purchase consideration.
Valuation Techniques
Equity Securities, Money Market Funds and Mutual Funds – Level 1
Investments for which market quotations are readily available are valued at the sale price on their principal exchange or, for certain markets, official closing bid price. Money market funds are valued at a readily determinable price.
Contingent Purchase Consideration Assets and Liabilities – Level 3
Purchase consideration for some acquisitions and dispositions made by the Company includes contingent consideration arrangements. Contingent consideration arrangements are based primarily on EBITDA or revenue targets over a period of 2 to 4 years. The fair value of the contingent purchase consideration asset and liability is estimated as the present value of future cash flows to be paid, based on projections of revenue and earnings and related targets of the acquired and disposed entities.
The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2025 and December 31, 2024:
Identical Assets
(Level 1)		Observable Inputs
(Level 2)		Unobservable Inputs
(Level 3)		Total
(In millions)06/30/2512/31/2406/30/2512/31/2406/30/2512/31/2406/30/2512/31/24
Assets:
Financial instruments owned:
Exchange traded equity securities (a)$11 $7 $— $— $— $— $11 $7 
Mutual funds (a)196 194 — — — — 196 194 
Unit investment trust (a)— — — 83 — — — 83 
Money market funds (b)162 353 — — — — 162 353 
Total assets measured at fair value$369 $554 $— $83 $— $— $369 $637 
Fiduciary Assets:
Money market funds$243 $76 $— $— $— $— $243 $76 
Total fiduciary assets measured
at fair value		$243 $76 $— $— $— $— $243 $76 
Liabilities:
Contingent purchase consideration liabilities (c)
$— $— $— $— $207 $161 $207 $161 
Total liabilities measured at fair value$— $— $— $— $207 $161 $207 $161 
(a)Included in other assets in the consolidated balance sheets.
(b)Included in cash and cash equivalents in the consolidated balance sheets.
(c)Included in accounts payable and accrued liabilities and other liabilities in the consolidated balance sheets.
For the six months ended June 30, 2025 and 2024, there were no assets or liabilities that were transferred between levels.
The following table sets forth a summary of the changes in fair value of the Company’s Level 3 liabilities for the three and six months ended June 30, 2025 and 2024:
Three Months Ended
 June 30,		Six Months Ended
 June 30,
(In millions)2025202420252024
Balance at beginning of period,$160 $242 $161 $252 
Net additions32 4 37 17 
Payments(7)(135)(26)(161)
Revaluation impact21 9 30 15 
Other1 1 5 (2)
Balance at end of period$207 $121 $207 $121 
Long-Term Investments
The Company has investments in certain private equity funds as well as in public and private companies that are accounted for using the equity method of accounting. The carrying value of these investments was $286 million and $257 million at June 30, 2025 and December 31, 2024, respectively.
Private Equity Investments
The Company's investments in private equity funds were $209 million and $182 million at June 30, 2025 and December 31, 2024, respectively. The carrying values of these private equity investments approximate fair value. The underlying private equity funds follow investment company accounting, where investments within the fund are carried at fair value. The Company records in earnings its proportionate share of the change in fair value of the funds in the investment income line in the consolidated statements of income. These investments are included in other assets in the consolidated balance sheets. The Company recorded net investment income of $8 million and $10 million for the three and six months ended June 30, 2025, respectively. The Company recorded net investment gains of $1 million for the three months ended June 30, 2024.
At June 30, 2025, the Company has commitments of potential future investments of approximately $94 million in private equity funds that invest primarily in financial services companies.
Investments in Public and Private Companies
The Company has investments in private insurance brokerage and consulting companies with a carrying value of $77 million and $75 million at June 30, 2025 and December 31, 2024, respectively. These investments are accounted for using the equity method of accounting, the results of which are included in revenue in the consolidated statements of income and the carrying value of which is included in other assets in the consolidated balance sheets. The Company records its share of income or loss on its equity method investments, some of which are on a one quarter lag basis.
Other Investments
The Company held equity investments with readily determinable market values at June 30, 2025 and December 31, 2024, of $22 million and $19 million, respectively. For the three and six months ended June 30, 2025, the Company recorded mark-to-market losses of $1 million and mark-to-market gains of $2 million on these investments, respectively. For the six months ended June 30, 2024, the Company recorded a mark-to-market gain on these investments of $2 million.
The Company also held investments without readily determinable market values of $17 million and $16 million at June 30, 2025 and December 31, 2024, respectively.
In January 2025, the Company disposed an investment in a unit trust fund.