2012 Q4 Form 10-K Financial Statement

#000119312513046126 Filed on February 08, 2013

View on sec.gov

Income Statement

Concept 2012 Q4 2012 2011 Q4
Revenue $673.2M $2.520B $578.4M
YoY Change 16.39% 18.06% 25.99%
Cost Of Revenue $448.2M $111.6M $380.6M
YoY Change 17.76% 248.75% 27.29%
Gross Profit $225.0M $2.409B $197.8M
YoY Change 13.75% 14.55% 23.55%
Gross Profit Margin 33.42% 95.57% 34.2%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $36.70M $41.40M $33.90M
YoY Change 8.26% 15.32% 40.66%
% of Gross Profit 16.31% 1.72% 17.14%
Operating Expenses $168.7M $483.2M $140.0M
YoY Change 20.5% 15.32% 11.46%
Operating Profit $56.30M $1.926B $57.80M
YoY Change -2.6% 14.36% 67.54%
Interest Expense -$10.90M $43.00M -$10.40M
YoY Change 4.81% 5.39% 19.54%
% of Operating Profit -19.36% 2.23% -17.99%
Other Income/Expense, Net
YoY Change
Pretax Income $45.40M $245.3M $47.40M
YoY Change -4.22% 18.05% 83.72%
Income Tax $11.90M $50.30M $6.900M
% Of Pretax Income 26.21% 20.51% 14.56%
Net Earnings $33.50M $195.0M $40.50M
YoY Change -17.28% 35.32% -25.96%
Net Earnings / Revenue 4.98% 7.74% 7.0%
Basic Earnings Per Share $0.27 $1.61 $0.36
Diluted Earnings Per Share $0.27 $1.59 $0.35
COMMON SHARES
Basic Shares Outstanding 121.0M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2012 Q4 2012 2011 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $302.0M $302.0M $291.0M
YoY Change 3.78% 3.78% 16.4%
Cash & Equivalents $302.1M $302.0M $291.2M
Short-Term Investments
Other Short-Term Assets $179.7M $1.031B $188.6M
YoY Change -4.72% 17.03% -74.02%
Inventory
Prepaid Expenses
Receivables $1.096B
Other Receivables $0.00
Total Short-Term Assets $2.430B $2.430B $2.199B
YoY Change 10.46% 10.5% 27.43%
LONG-TERM ASSETS
Property, Plant & Equipment $105.4M $105.0M $91.30M
YoY Change 15.44% 15.38% 20.13%
Goodwill $1.473B $1.155B
YoY Change 27.47% 30.73%
Intangibles $809.6M $561.5M
YoY Change 44.19% 16.13%
Long-Term Investments
YoY Change
Other Assets $283.3M $535.0M $235.8M
YoY Change 20.14% 12.39% -44.78%
Total Long-Term Assets $2.923B $2.922B $2.284B
YoY Change 27.96% 27.88% 22.14%
TOTAL ASSETS
Total Short-Term Assets $2.430B $2.430B $2.199B
Total Long-Term Assets $2.923B $2.922B $2.284B
Total Assets $5.352B $5.352B $4.484B
YoY Change 19.38% 19.36% 24.68%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.820B $1.820B $1.622B
YoY Change 12.21% 12.21% 29.76%
Accrued Expenses $307.0M $307.0M $304.0M
YoY Change 0.99% 0.99% 33.92%
Deferred Revenue
YoY Change
Short-Term Debt $129.0M $0.00 $10.00M
YoY Change 1190.0%
Long-Term Debt Due $129.0M $129.0M $10.00M
YoY Change 1190.0% 1190.0%
Total Short-Term Liabilities $2.363B $2.363B $2.074B
YoY Change 13.95% 13.93% 31.49%
LONG-TERM LIABILITIES
Long-Term Debt $725.0M $725.0M $675.0M
YoY Change 7.41% 7.41% 22.73%
Other Long-Term Liabilities $605.8M $606.0M $491.3M
YoY Change 23.31% 23.42% 35.72%
Total Long-Term Liabilities $1.331B $1.331B $1.166B
YoY Change 14.1% 14.15% 27.88%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.363B $2.363B $2.074B
Total Long-Term Liabilities $1.331B $1.331B $1.166B
Total Liabilities $3.694B $3.694B $3.240B
YoY Change 14.01% 14.01% 30.17%
SHAREHOLDERS EQUITY
Retained Earnings $510.4M $482.9M
YoY Change 5.69%
Common Stock $1.181B $807.9M
YoY Change 46.18%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.659B $1.659B $1.244B
YoY Change
Total Liabilities & Shareholders Equity $5.352B $5.352B $4.484B
YoY Change 19.38% 19.36% 24.68%

Cashflow Statement

Concept 2012 Q4 2012 2011 Q4
OPERATING ACTIVITIES
Net Income $33.50M $195.0M $40.50M
YoY Change -17.28% 35.32% -25.96%
Depreciation, Depletion And Amortization $36.70M $41.40M $33.90M
YoY Change 8.26% 15.32% 40.66%
Cash From Operating Activities $163.6M $343.0M $98.40M
YoY Change 66.26% 20.77% 475.44%
INVESTING ACTIVITIES
Capital Expenditures -$14.90M $51.00M -$10.60M
YoY Change 40.57% 11.11% 51.43%
Acquisitions $344.1M
YoY Change 29.95%
Other Investing Activities -$212.9M -$331.2M -$32.50M
YoY Change 555.08% 24.84% -10.71%
Cash From Investing Activities -$227.8M -$382.2M -$43.10M
YoY Change 428.54% 22.81% -0.69%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$80.80M
YoY Change 11.14%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 61.00M 45.90M -6.700M
YoY Change -1010.45% -30.03% -71.37%
NET CHANGE
Cash From Operating Activities 163.6M 343.0M 98.40M
Cash From Investing Activities -227.8M -382.2M -43.10M
Cash From Financing Activities 61.00M 45.90M -6.700M
Net Change In Cash -3.200M 6.700M 48.60M
YoY Change -106.58% -82.55% -197.79%
FREE CASH FLOW
Cash From Operating Activities $163.6M $343.0M $98.40M
Capital Expenditures -$14.90M $51.00M -$10.60M
Free Cash Flow $178.5M $292.0M $109.0M
YoY Change 63.76% 22.64% 352.28%

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<div> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Basis of Presentation -</b> The accompanying consolidated financial statements include our accounts and all of our majority-owned subsidiaries (50% or greater ownership). Substantially all of our investments in partially owned entities in which our ownership is less than 50% are accounted for using the equity method based on the legal form of our ownership interest and the applicable ownership percentage of the entity. However, in situations where a less than 50%-owned investment has been determined to be a variable interest entity (which we refer to as a VIE) and we are deemed to be the primary beneficiary in accordance with the variable interest model of consolidation, we will consolidate the investment into our consolidated financial statements. For partially owned entities accounted for using the equity method, our share of the net earnings of these entities is included in consolidated net earnings. All material intercompany accounts and transactions have been eliminated in consolidation.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">Certain reclassifications have been made to the amounts reported in prior years&#x2019; consolidated financial statements in order to conform to the current year presentation.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">In the preparation of our consolidated financial statements as of December&#xA0;31, 2012, management evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued for potential recognition in our consolidated financial statements and/or disclosure in the notes thereto.</font></p> </div>
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<div> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Nature of Operations -</b> Arthur J. Gallagher&#xA0;&amp; Co. and its subsidiaries, collectively referred to herein as we, our or us, provide insurance brokerage and risk management services to a wide variety of commercial, industrial, institutional and governmental organizations through two reportable operating segments. Commission and fee revenue generated by the brokerage segment is primarily related to the negotiation and placement of insurance for our clients. Fee revenue generated by the risk management segment is primarily related to claims management, information management, risk control consulting (loss control) services and appraisals in the property/casualty market. Investment income and other revenue is generated from our investment portfolio, which includes invested cash and restricted funds, as well as tax-advantaged, clean energy and other investments. We are headquartered in Itasca, Illinois, have operations in 18 countries and offer client-service capabilities in more than 140&#xA0;countries globally through a network of correspondent insurance brokers and consultants.</font></p> </div>
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CY2012 ajg Defined Benefit Plan Discretionary Contributions By Employer
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7200000
CY2012 ajg Minimum Exercise Price Of Stock Options Percent Of Fair Market Value Of Share Of Common Stock On Date Of Grant
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1.00 pure
CY2012 ajg Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Expected Long Term Return On Plan Assets
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0.0750 pure
CY2012 ajg Effective Income Tax Rate Reconciliation Changes In Unrecognized Tax Benefits Related To Resolution Of Federal And State Audits Expiration Of Various Statutes Of Limitations And Other Items
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0.002 pure
CY2012 ajg Effective Income Tax Rate Reconciliation Foreign Dividends And Other Permanent Differences
EffectiveIncomeTaxRateReconciliationForeignDividendsAndOtherPermanentDifferences
-0.011 pure
CY2012 ajg Acquired Property Through Lease Percentage
AcquiredPropertyThroughLeasePercentage
0.60 pure
CY2012 ajg Expected Period Of Return On Plan Assets
ExpectedPeriodOfReturnOnPlanAssets
10 Y
CY2012 ajg Number Of Financial Institutions Entered In Unsecured Multicurrency Credit Agreement
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12 Institution
CY2012 ajg Options To Purchase Common Stock Shares Outstanding
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1100000 shares
CY2012 ajg Weighted Average Number Of Common And Common Equivalent Shares Outstanding
WeightedAverageNumberOfCommonAndCommonEquivalentSharesOutstanding
122500000 shares
CY2012 ajg Unearned Deferred Compensation Share
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610000 shares
CY2012 ajg Deferred Equity Participation Plan Distributions To Key Executives Age
DeferredEquityParticipationPlanDistributionsToKeyExecutivesAge
Age 62 or upon or after their actual retirement
CY2012 ajg Maturity Period Of Short Term Investments
MaturityPeriodOfShortTermInvestments
90 days or less
CY2012 ajg Weighted Average Period
WeightedAveragePeriod
P4Y
CY2012 ajg Additional Equity Compensation Expenses
AdditionalEquityCompensationExpenses
300000
CY2012 ajg Earnout Obligations Of Acquisitions
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5 Acquisition
CY2011 ajg Stock Based Compensation Stock Option Granted By Compensation Committee To Officers And Key Employers Exercisable Rate
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0.20 pure
us-gaap Number Of Businesses Acquired
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248 Entity
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CY2011Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
23500000
CY2011Q1 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
15200000
CY2011Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.14
CY2011Q1 us-gaap Net Income Loss
NetIncomeLoss
15200000
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0.14
CY2011Q1 us-gaap Revenues
Revenues
447400000
CY2011Q1 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
0.14
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IncomeLossFromContinuingOperationsPerBasicShare
0.14
CY2011Q1 us-gaap Benefits Losses And Expenses
BenefitsLossesAndExpenses
423900000
CY2011Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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CY2011Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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CY2011Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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65900000
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IncomeLossFromContinuingOperations
41700000
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EarningsPerShareBasic
0.38
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NetIncomeLoss
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0.37
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Revenues
546100000
CY2011Q2 us-gaap Income Loss From Continuing Operations Per Diluted Share
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0.37
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CY2012Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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CY2012Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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CY2012Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
32500000
CY2012Q3 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
0.50
CY2012Q1 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
28100000
CY2012Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.24
CY2012Q1 us-gaap Net Income Loss
NetIncomeLoss
28100000
CY2012Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.24
CY2012Q1 us-gaap Revenues
Revenues
546800000
CY2012Q1 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
0.24
CY2012Q1 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
0.24
CY2012Q1 us-gaap Benefits Losses And Expenses
BenefitsLossesAndExpenses
514300000
CY2012Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
CY2012Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
CY2012Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
CY2012Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
91100000
CY2012Q2 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
71700000
CY2012Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.60
CY2012Q2 us-gaap Net Income Loss
NetIncomeLoss
71700000
CY2012Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.59
CY2012Q2 us-gaap Revenues
Revenues
649900000
CY2012Q2 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
0.59
CY2012Q2 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
0.60
CY2012Q2 us-gaap Benefits Losses And Expenses
BenefitsLossesAndExpenses
558800000
CY2011Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
CY2011Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
CY2011Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
CY2011Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
71000000
CY2011Q3 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
46700000
CY2011Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.41
CY2011Q3 us-gaap Net Income Loss
NetIncomeLoss
46700000
CY2011Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.41
CY2011Q3 us-gaap Revenues
Revenues
562800000
CY2011Q3 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
0.41
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IncomeLossFromContinuingOperationsPerBasicShare
0.41
CY2011Q3 us-gaap Benefits Losses And Expenses
BenefitsLossesAndExpenses
491800000
CY2012Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
CY2012Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
CY2012Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
CY2012Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
76300000
CY2012Q3 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
61700000
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EarningsPerShareBasic
0.50
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NetIncomeLoss
61700000
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EarningsPerShareDiluted
0.50
CY2012Q3 us-gaap Revenues
Revenues
650400000
CY2012Q3 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
0.50
CY2011Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.35
CY2011Q4 us-gaap Revenues
Revenues
578400000
CY2011Q4 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
0.35
CY2012Q3 us-gaap Benefits Losses And Expenses
BenefitsLossesAndExpenses
574100000
CY2010Q4 ajg Compensation Approved By Committee Value
CompensationApprovedByCommitteeValue
5900000
CY2011Q4 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
CY2011Q4 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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47400000
CY2011Q4 us-gaap Income Loss From Continuing Operations
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40500000
CY2011Q4 us-gaap Earnings Per Share Basic
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NetIncomeLoss
40500000
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0.36
CY2011Q4 us-gaap Benefits Losses And Expenses
BenefitsLossesAndExpenses
531000000
CY2011Q4 ajg Compensation Approved By Committee Value
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6500000
CY2012Q4 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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45400000
CY2012Q4 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
33500000
CY2012Q4 us-gaap Earnings Per Share Basic
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33500000
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0.27
CY2012Q4 us-gaap Revenues
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673200000
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IncomeLossFromContinuingOperationsPerDilutedShare
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0.27
CY2012Q4 us-gaap Benefits Losses And Expenses
BenefitsLossesAndExpenses
627800000
CY2012Q4 ajg Compensation Approved By Committee Value
CompensationApprovedByCommitteeValue
7300000

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