U.S. Markets closed

Arthur J. Gallagher & Co. Announces Third Quarter 2019 Financial Results

ROLLING MEADOWS, Ill., Oct. 24, 2019 /PRNewswire/ -- Arthur J. Gallagher & Co. (AJG) today reported its financial results for the quarter ended September 30, 2019.  Management will host a webcast conference call to discuss these results on Thursday, October 24, 2019 at 5:15 p.m. ET/4:15 p.m. CT.  To listen to the call, and for printer-friendly formats of this release and the "Supplemental Quarterly Data" and "CFO Commentary," which may also be referenced during the call, please visit ajg.com/IR.  These documents contain both GAAP and non-GAAP measures.  Investors and other users of this information should read carefully the section entitled "Information Regarding Non-GAAP Measures" beginning on page 9.

"We delivered an outstanding quarter of operating performance, and we are well positioned for a strong finish to 2019," said J. Patrick Gallagher, Jr., Chairman, President and CEO.  "During the third quarter, our core brokerage and risk management segments combined to post 16% growth in earnings per share; 13% growth in revenues, of which 5.8% was organic revenue growth; net earnings margin improved by 78 basis points; and adjusted EBITDAC margins expanded by 66 basis points.  During the quarter, we also completed 14 tuck-in mergers with approximately $85 million of annualized revenues, bringing our first nine months total to 38 mergers with approximately $351 million of annualized revenues."

"Recent meetings with insurance carriers, as well as with our business leaders around the globe, confirm what our internal data is showing; global P&C rates are increasing at a higher rate than earlier this year – about 5% in the aggregate; which is even a bit better than what we saw in our mid-year internal insurance rate survey."

"In early October, we also surveyed our producers and consultants regarding their clients' exposure units.  Over 75% said their customers continued to grow their payrolls and exposure units during the third quarter and more than 95% of these respondents said they were seeing similar or stronger client exposure growth as they begin working on 2020 renewals.  An environment of increasing rates and increasing exposure units is one in which our clients rely on our talented production staff to deliver the best insurance, risk management and benefits consulting advice as they leverage our vast array of resources and capabilities."


Summary of Financial Results – Third Quarter

Reconciliations of non-GAAP measures begin on page 2


(Dollars in millions, except per share data)

3rd Q 2019


3rd Q 2018


Change





Reported

Adjusted


Reported

Adjusted


Reported

Adjusted

Brokerage Segment


GAAP

Non-GAAP


GAAP

Non-GAAP


GAAP

Non-GAAP


Revenues 

$   1,195.9

$   1,192.6


$   1,049.4

$   1,035.3


14%

15%


Organic revenues 


$   1,072.4



$   1,014.1



5.8%


Net earnings 

$      151.1



$      122.2



24%



Net earnings margin

12.6%



11.6%



 +99 bpts



Adjusted EBITDAC 


$      324.3



$      274.5



18%


Adjusted EBITDAC margin


27.2%



26.5%



 +68 bpts


Diluted net earnings per share

$        0.77

$        0.85


$        0.65

$        0.73


18%

16%













Risk Management Segment 










Revenues before reimbursements

$      211.6

$      211.6


$      199.1

$      196.9


6%

7%


Organic revenues 


$      208.1



$      196.8



5.7%


Net earnings 

$        16.2



$        16.5



-2%



Net earnings margin (before reimbursements)

7.7%



8.3%



      -63 bpts



Adjusted EBITDAC 


$        38.0



$        35.3



8%


Adjusted EBITDAC margin (before reimbursements)


18.0%



17.9%



 +3 bpts


Diluted net earnings per share

$        0.09

$        0.10


$        0.09

$        0.10


-%

-%













Corporate Segment 











Diluted net loss per share

$       (0.20)

$       (0.15)


$       (0.06)

$       (0.06)
















Total Company











Diluted net earnings per share

$        0.66

$        0.80


$        0.68

$        0.77


-3%

4%













Total Brokerage and Risk Management Segment 










Diluted net earnings per share

$        0.86

$        0.95


$        0.74

$        0.83


16%

14%












(1 of 14)


Summary of Financial Results – Nine-Months Ended September 30,

Reconciliations of non-GAAP measures begin on page 3


(Dollars in millions, except per share data)

9 Mths 2019


9 Mths 2018


Change



Reported

Adjusted


Reported

Adjusted


Reported

Adjusted

Brokerage Segment

GAAP

Non-GAAP


GAAP

Non-GAAP


GAAP

Non-GAAP


Revenues 

$   3,709.0

$   3,646.7


$   3,245.1

$   3,185.0


14%

15%


Organic revenues 


$   3,302.9



$   3,123.4



5.8%


Net earnings 

$      598.6



$      488.9



22%



Net earnings margin

16.1%



15.1%



 +107 bpts



Adjusted EBITDAC 


$   1,094.2



$      938.1



17%


Adjusted EBITDAC margin


30.0%



29.5%



 +56 bpts


Diluted net earnings per share

$        3.06

$        3.05


$        2.58

$        2.70


19%

13%











Risk Management Segment 










Revenues before reimbursements

$      624.0

$      624.0


$      596.1

$      588.0


5%

6%


Organic revenues 


$      612.7



$      587.6



4.3%


Net earnings 

$        47.9



$        50.0



-4%



Net earnings margin (before reimbursements)

7.7%



8.4%



      -71 bpts



Adjusted EBITDAC 


$      109.1



$      101.8



7%


Adjusted EBITDAC margin (before reimbursements)


17.5%



17.3%



 +17 bpts


Diluted net earnings per share

$        0.25

$        0.28


$        0.27

$        0.27


-7%

4%











Corporate Segment 










Diluted net loss per share

$       (0.30)

$       (0.26)


$       (0.07)

$       (0.07)














Total Company










Diluted net earnings per share

$        3.01

$        3.07


$        2.78

$        2.90


8%

6%











Total Brokerage and Risk Management Segment 










Diluted net earnings per share

$        3.31

$        3.33


$        2.85

$        2.97


16%

12%





Quarter Ended September 30 Reported GAAP to Adjusted Non-GAAP Reconciliation:




















Revenues Before








Diluted Net 




 Reimbursements


Net Earnings


EBITDAC


Earnings Per Share

Segment


3rd Q 19

3rd Q 18


3rd Q 19

3rd Q 18


3rd Q 19

3rd Q 18


3rd Q 19

3rd Q 18

Chg




(in millions)


(in millions)


(in millions)





Brokerage, as reported


$  1,195.9

$ 1,049.4


$ 151.1

$ 122.2


$ 304.6

$ 256.8


$    0.77

$   0.65

18%


Net gains on divestitures


(3.3)

(0.6)


(2.7)

(0.5)


(3.3)

(0.6)


(0.01)

-



Acquisition integration


-

-


5.8

1.7


7.1

2.2


0.03

0.01



Workforce & lease termination


-

-


10.9

11.7


13.4

15.6


0.06

0.06



Acquisition related adjustments


-

-


0.8

4.3


2.5

3.3


-

0.02



Levelized foreign currency















translation


-

(13.5)


-

(1.1)


-

(2.8)


-

(0.01)

















Brokerage, as adjusted  *


1,192.6

1,035.3


165.9

138.3


324.3

274.5


0.85

0.73

16%
















Risk Management, as reported


211.6

199.1


16.2

16.5


35.0

33.6


0.09

0.09

-%


Workforce & lease termination


-

-


2.1

1.7


3.0

2.3


0.01

0.01



Acquisition related adjustments


-

-


0.1

-


-

-


-

-



Levelized foreign currency















translation


-

(2.2)


-

(0.4)


-

(0.6)


-

-

















Risk Management, as adjusted  *


211.6

196.9


18.4

17.8


38.0

35.3


0.10

0.10

-%
















Corporate, as reported


383.0

492.7


(30.2)

(0.3)


(53.2)

(51.4)


(0.20)

(0.06)



Clean energy related


3.0

-


11.7

-


14.9

-


0.05

-

















Corporate, as adjusted  *


386.0

492.7


(18.5)

(0.3)


(38.3)

(51.4)


(0.15)

(0.06)

















Total Company, as reported


$  1,790.5

$ 1,741.2


$ 137.1

$ 138.4


$ 286.4

$ 239.0


$    0.66

$   0.68

-3%
















Total Company, as adjusted  *


$  1,790.2

$ 1,724.9


$ 165.8

$ 155.8


$ 324.0

$ 258.4


$    0.80

$   0.77

4%
















Total Brokerage & Risk Management, as reported


$  1,407.5

$ 1,248.5


$ 167.3

$ 138.7


$ 339.6

$ 290.4


$    0.86

$   0.74

16%
















Total Brokerage & Risk Management,
as adjusted  *


$  1,404.2

$ 1,232.2


$ 184.3

$ 156.1


$ 362.3

$ 309.8


$    0.95

$   0.83

14%

(2 of 14)

*

For third quarter 2019, the pretax impact of the Brokerage segment adjustments totals $18.2 million, with a corresponding adjustment to the provision for income taxes of $3.4 million relating to these items.  The pretax impact of the Risk Management segment adjustments totals $3.1 million, with a corresponding adjustment to the provision for income taxes of $0.9 million relating to these items.  The pretax impact of the Corporate segment adjustments totals $14.9 million, with a corresponding adjustment to the provision for income taxes of $3.2 million relating to these items.  A detailed reconciliation of the 2019 and 2018 provision (benefit) for income taxes is shown on pages 13 and 14.





Nine Months Ended September 30 Reported GAAP to Adjusted Non-GAAP Reconciliation:
























Revenues Before








Diluted Net 




 Reimbursements


Net Earnings


EBITDAC


Earnings Per Share

Segment


9 Mths 19

9 Mths 18


9 Mths 19

9 Mths 18


9 Mths 19

9 Mths 18


9 Mths 19

9 Mths 18

Chg




(in millions)


(in millions)


(in millions)





Brokerage, as reported


$3,709.0

$3,245.1


$  598.6

$  488.9


$1,092.2

$     915.7


$     3.06

$     2.58

19%


Net gains on divestitures


(62.3)

(9.6)


(37.2)

(7.4)


(49.3)

(9.6)


(0.20)

(0.04)



Acquisition integration


-

-


8.6

1.7


10.9

2.2


0.05

0.01



Workforce & lease termination


-

-


22.8

20.1


29.2

26.7


0.12

0.11



Acquisition related adjustments


-

-



3.7

 

8.6



11.2

 

11.8



0.02

 

0.05




Levelized foreign currency















translation


-

(50.5)


-

(2.7)


-

(8.7)


-

(0.01)

















Brokerage, as adjusted  *


3,646.7

3,185.0


596.5

509.2


1,094.2

938.1


3.05

2.70

13%
















Risk Management, as reported


624.0

596.1


47.9

50.0


102.9

100.2


0.25

0.27

-7%


Workforce & lease termination


-

-


4.5

2.7


6.2

3.6


0.03

0.01



Acquisition related adjustments


-

-



(0.1)

 

(0.1)


-

-


-

-




Levelized foreign currency















translation


-

(8.1)


-

(1.3)


-

(2.0)


-

(0.01)

















Risk Management, as adjusted  *


624.0

588.0


52.3

51.3


109.1

101.8


0.28

0.27

4%
















Corporate, as reported


1,039.8

1,327.9


(36.3)

9.2


(164.5)

(161.4)


(0.30)

(0.07)



Clean energy related


3.0

-


11.7

-


14.9

-


0.04

-

















Corporate, as adjusted  *


1,042.8

1,327.9


(24.6)

9.2


(149.6)

(161.4)


(0.26)

(0.07)

















Total Company, as reported


$5,372.8

$5,169.1


$  610.2

$  548.1


$1,030.6

$     854.5


$     3.01

$     2.78

8%
















Total Company, as adjusted  *


$5,313.5

$5,100.9


$  624.2

$  569.7


$1,053.7

$     878.5


$     3.07

$     2.90

6%
















Total Brokerage & Risk Management, as reported


$4,333.0

$3,841.2


$  646.5

$  538.9


$1,195.1

$  1,015.9


$     3.31

$     2.85

16%
















Total Brokerage & Risk Management,
as adjusted  *


$4,270.7

$3,773.0


$  648.8

$  560.5


$1,203.3

$  1,039.9


$     3.33

$     2.97

12%
















*

For the nine-month period ended September 30, 2019, the pretax impact of the Brokerage segment adjustments totals $(4.3) million, with a corresponding adjustment to the benefit for income taxes of $(2.2) million relating to these items.  The pretax impact of the Risk Management segment adjustments totals $6.0 million, with a corresponding adjustment to the provision for income taxes of $1.6 million relating to these items.  The pretax impact of the Corporate segment adjustments totals $14.9 million, with a corresponding adjustment to the provision for income taxes of $3.2 million relating to these items.  A detailed reconciliation of the 2019 and 2018 provision (benefit) for income taxes is shown on pages 13 and 14.

(3 of 14)


Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):


Organic Revenues (Non-GAAP)

3rd Q 19


3rd Q 18


Change


9 Mths 19


9 Mths 18


Change














Base Commissions and Fees












Commissions and fees, as reported

$   1,088.8


$      961.3


13.3%


$   3,324.8


$   2,962.3


12.2%

Less commissions and fees from acquisitions 

(89.9)


-




(265.4)


-



Less divested operations

-


(4.0)




-


(17.5)



Levelized foreign currency translation

-


(12.0)




-


(45.0)
















Organic base commissions and fees

$      998.9


$      945.3


5.7%


$   3,059.4


$   2,899.8


5.5%














Supplemental Revenues












Supplemental revenues, as reported

$        49.8


$        43.9


13.4%


$      153.4


$      144.0


6.5%

Less supplemental revenues from acquisitions

(2.8)


-




(5.1)


-



Levelized foreign currency translation

-


(0.6)




-


(2.4)
















Organic supplemental revenues

$        47.0


$        43.3


8.6%


$      148.3


$      141.6


4.7%














Contingent Revenues












Contingent revenues, as reported

$        30.4


$        25.7


18.3%


$      107.9


$        82.4


31.0%

Less contingent revenues from acquisitions

(3.9)


-




(12.7)


-



Levelized foreign currency translation

-


(0.2)




-


(0.4)
















Organic contingent revenues  

$        26.5


$        25.5


3.9%


$        95.2


$        82.0


16.1%














Total reported commissions, fees, supplemental revenues and contingent revenues

$   1,169.0


$   1,030.9


13.4%


$   3,586.1


$   3,188.7


12.5%

Less commissions, fees, supplemental revenues and contingent revenues from acquisitions

(96.6)


-




(283.2)


-



Less divested operations

-


(4.0)




-


(17.5)



Levelized foreign currency translation

-


(12.8)




-


(47.8)
















Total organic commissions, fees, supplemental revenues and contingent revenues

$   1,072.4


$   1,014.1


5.8%


$   3,302.9


$   3,123.4


5.8%

















Acquisition Activity

3rd Q 19


3rd Q 18


9 Mths 19


9 Mths 18

Number of acquisitions closed  *

11


9


35


27

Estimated annualized revenues acquired (in millions)

$         69.2


$         61.7


$       334.9


$       233.6



*

In the third quarter of 2019, Gallagher issued 100,000 shares at the request of sellers and/or in connection with tax‑free exchange acquisitions.



















Compensation Expense and Ratios


3rd Q 19


3rd Q 18


9 Mths 19


9 Mths 18











Compensation expense, as reported


$    694.1


$    622.1


$2,030.6


$1,831.8











Acquisition integration 


(3.7)


(1.8)


(5.8)


(1.8)

Workforce and lease termination related charges


(11.2)


(14.5)


(21.9)


(21.3)

Acquisition related adjustments


(2.5)


(3.3)


(11.2)


(11.8)

Levelized foreign currency translation


-


(8.5)


-


(33.0)











Compensation expense, as adjusted


$    676.7


$    594.0


$1,991.7


$1,763.9











Reported compensation expense ratios using reported revenues on pages 2 and 3

*

58.0%


59.3%


54.8%


56.5%











Adjusted compensation expense ratios using adjusted revenues on pages 2 and 3

**

56.7%


57.4%


54.6%


55.4%



*

Reported third quarter compensation ratio was 1.3 pts lower than the same period in 2018.  This ratio was impacted by savings in base compensation due to headcount controls, reduced severance, and savings in employee benefits, partially offset by an increase in incentive compensation.



**

Adjusted third quarter compensation ratio was 0.7 pts lower than the same period in 2018.  This ratio was primarily impacted by savings in base compensation due to headcount controls, and savings in employee benefits, partially offset by an increase in incentive compensation.

(4 of 14)

Operating Expense and Ratios


3rd Q 2019


3rd Q 2018


9 Mths 2019


9 Mths 2018











Operating expense, as reported 


$     197.2


$     170.5


$     586.2


$      497.6











Acquisition integration 


(3.4)


(0.4)


(5.1)


(0.4)

Workforce and lease termination related charges


(2.2)


(1.1)


(7.3)


(5.4)

Costs related to divestures


-


-


(13.0)


-

Levelized foreign currency translation


-


(2.2)


-


(8.8)











Operating expense, as adjusted


$     191.6


$     166.8


$     560.8


$      483.0











Reported operating expense ratios using reported revenues on pages 2 and 3

*

16.5%


16.3%


15.8%


15.3%











Adjusted operating expense ratios using adjusted revenues on pages 2 and 3

*

16.1%


16.1%


15.4%


15.2%



Reported third quarter operating expense ratio was 0.2 pts higher than the same period in 2018.  Adjusted third quarter operating expense ratio was flat to the same period in 2018.  All other items were essentially consistent with the prior period.





Net Earnings to Adjusted EBITDAC (Non-GAAP)


3rd Q 2019


3rd Q 2018


Change


9 Mths 2019


9 Mths 2018


Change















Net earnings, as reported


$    151.1


$    122.2


23.7%


$     598.6


$     488.9


22.4%

Provision for income taxes


48.8


41.0




196.0


163.8



Depreciation


16.4


16.3




49.0


45.4



Amortization


82.8


71.8




237.0


211.2



Change in estimated acquisition earnout payables


5.5


5.5




11.6


6.4

















EBITDAC 


304.6


256.8


18.6%


1,092.2


915.7


19.3%















Net gains on divestitures


(3.3)


(0.6)




(49.3)


(9.6)



Acquisition integration


7.1


2.2




10.9


2.2



Workforce and lease termination related charges


13.4


15.6




29.2


26.7



Acquisition related adjustments


2.5


3.3




11.2


11.8



Levelized foreign currency translation


-


(2.8)




-


(8.7)

















EBITDAC, as adjusted 


$    324.3


$    274.5


18.1%


$  1,094.2


$     938.1


16.6%















Net earnings margin, as reported using reported revenues on pages 2 and 3


12.6%


11.6%


+99 bpts


16.1%


15.1%


+107 bpts















EBITDAC margin, as adjusted using adjusted revenues on pages 2 and 3 


27.2%


26.5%


+68 bpts


30.0%


29.5%


 +56 bpts



Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):


Organic Revenues (Non-GAAP)

3rd Q 2019


3rd Q 2018


Change


9 Mths 2019


9 Mths 2018


Change













Fees

$      209.9


$      197.9


6.1%


$      619.7


$      589.7


5.1%

International performance bonus fees 

1.3


1.1




3.0


6.0















Fees as reported

211.2


199.0


6.1%


622.7


595.7


4.5%













Less fees from acquisitions

(3.1)


-




(10.0)


-



Levelized foreign currency translation

-


(2.2)




-


(8.1)















Organic fees 

$      208.1


$      196.8


5.7%


$      612.7


$      587.6


4.3%

















Acquisition Activity

3rd Q 19


3rd Q 18


9 Mths 19


9 Mths 18









Number of acquisitions closed 

3


1


3


2

Estimated annualized revenues acquired (in millions)

$         15.9


$         13.0


$         15.9


$         16.2


(5 of 14)


Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):


Compensation Expense and Ratios


3rd Q 2019


3rd Q 2018


9 Mths 2019


9 Mths 2018











Compensation expense, as reported


$    129.1


$    122.4


$    382.7


$      362.7











Workforce and lease termination related charges


(1.1)


(2.3)


(4.3)


(3.2)

Levelized foreign currency translation


-


(1.2)


-


(4.6)











Compensation expense, as adjusted


$    128.0


$    118.9


$    378.4


$      354.9











Reported compensation expense ratios using reported revenues (before reimbursements) on pages 2 and 3

*

61.0%


61.5%


61.3%


60.9%











Adjusted compensation expense ratios using adjusted revenues (before reimbursements) on pages 2 and 3

**

60.5%


60.4%


60.6%


60.4%



*

Reported third quarter compensation ratio was 0.5 pts lower than the same period in 2018.  This ratio was primarily impacted by a savings in base compensation, reduced temporary help, and reduced severance, partially offset by an increase in incentive compensation.



**

Adjusted third quarter compensation ratio was 0.1 pts higher than the same period in 2018.  This ratio was primarily impacted an increase in incentive compensation, offset by savings in base compensation and temporary help.





Operating Expense and Ratios


3rd Q 2019


3rd Q 2018


9 Mths 2019


9 Mths 2018











Operating expense, as reported 


$      47.5


$      43.1


$     138.4


$      133.2











Workforce and lease termination related charges


(1.9)


-


(1.9)


(0.4)

Levelized foreign currency translation


-


(0.4)


-


(1.5)











Operating expense, as adjusted


$      45.6


$      42.7


$     136.5


$      131.3











Reported operating expense ratios using reported revenues (before reimbursements) on pages 2 and 3

*

22.5%


21.7%


22.2%


22.4%











Adjusted operating expense ratios using adjusted revenues (before reimbursements) on pages 2 and 3 

**

21.6%


21.7%


21.9%


22.3%



Reported third quarter operating expense ratio was 0.8 pts higher than the same period in 2018.  This ratio was impacted by higher workforce and lease termination charges and higher technology expenses, partially offset by savings in professional fees and employee expenses.



** 

Adjusted third quarter operating expense ratio was 0.1 pts lower than the same period in 2018.  This ratio was primarily impacted by savings in professional fees and employee expenses, partially offset by higher technology expenses.





Net Earnings to Adjusted EBITDAC (Non-GAAP)

3rd Q 2019


3rd Q 2018


Change


9 Mths 2019


9 Mths 2018


Change














Net earnings, as reported

$      16.2


$      16.5


-1.8%


$       47.9


$       50.0


-4.2%

Provision for income taxes

5.5


5.8




16.8


17.9



Depreciation

11.7


10.0




34.4


28.3



Amortization

1.4


1.0




3.4


3.2



Change in estimated acquisition earnout payables

0.2


0.3




0.4


0.8
















EBITDAC

35.0


33.6


4.2%


102.9


100.2


2.7%














Workforce and lease termination related charges

3.0


2.3




6.2


3.6



Levelized foreign currency translation

-


(0.6)




-


(2.0)
















EBITDAC, as adjusted 

$      38.0


$      35.3


7.7%


$     109.1


$     101.8


7.2%














Net earnings margin, as reported using reported 
   revenues (before reimbursements) on pages 2 and 3

7.7%


8.3%


  -63 bpts


7.7%


8.4%


  -71 bpts














EBITDAC margin, as adjusted using adjusted 
   revenues (before reimbursements) on pages 2 and 3

18.0%


17.9%


 +3 bpts


17.5%


17.3%


 +17 bpts

 (6 of 14)


Corporate Segment Reported GAAP Information (dollars in millions):



















2019






2018









Net Earnings






Net Earnings





Income


(Loss)




Income


(Loss)





Tax


Attributable to




Tax


Attributable to



Pretax


(Provision)


Controlling


Pretax


(Provision)


Controlling



Loss


Benefit


Interests


Loss


Benefit


Interests














3rd Quarter













Components of Corporate Segment, as reported


























Interest and banking costs


$   (47.8)


$      12.4


$           (35.4)


$   (37.6)


$        9.8


$           (27.8)

Clean energy related (1)


(42.0)


50.6


8.6


(46.1)


75.8


29.7

Acquisition costs


(3.5)


0.4


(3.1)


(2.5)


0.1


(2.4)

Corporate (includes impact of U.S. Tax Reform)


(21.1)


13.2


(7.9)


(18.2)


9.2


(9.0)














Reported 3rd quarter


(114.4)


76.6


(37.8)


(104.4)


94.9


(9.5)














Adjustments


























Clean energy related (2)


12.4


(3.2)


9.2


-


-


-














Components of Corporate Segment, as adjusted


























Interest and banking costs


(47.8)


12.4


(35.4)


(37.6)


9.8


(27.8)

Clean energy related (1)


(29.6)


47.4


17.8


(46.1)


75.8


29.7

Acquisition costs


(3.5)


0.4


(3.1)


(2.5)


0.1


(2.4)

Corporate (includes impact of U.S. Tax Reform)


(21.1)


13.2


(7.9)


(18.2)


9.2


(9.0)














Adjusted 3rd quarter


$ (102.0)


$      73.4


$           (28.6)


$ (104.4)


$      94.9


$              (9.5)














Nine Months













Components of Corporate Segment, as reported


























Interest and banking costs


$ (134.9)


$      35.1


$           (99.8)


$ (104.5)


$      27.2


$           (77.3)

Clean energy related (1)


(132.1)


210.4


78.3


(147.8)


244.4


96.6

Acquisition costs


(15.2)


2.3


(12.9)


(7.5)


0.8


(6.7)

Corporate (includes impact of U.S. Tax Reform)


(56.6)


33.1


(23.5)


(47.8)


21.2


(26.6)














Reported nine months


(338.8)


280.9


(57.9)


...