Arthur J Gallagher : Investor Meeting with Executive Management Team - Supplementary Quarterly Data

Cover

Supplemental Quarterly Financial Information

4th Quarter ended December 31, 2021

Recast at March 16, 2022

Review in conjuction with March 2022 IR meeting commentary

Index

Arthur J. Gallagher & Co.
Supplemental Quarterly Financial Information
4th Quarter ended December 31, 2021
Index	Page
Information Regarding Non-GAAP Measures	1
Brokerage Segment	2 - 4
Risk Management Segment	5 - 7
Combined Brokerage & Risk Management	8 - 10
Corporate Segment - Summary Operating Results	11
Notes to Supplemental Quarterly Financial Information	12
To Print:
- Select Print
- Select Entire Workbook

Disclosure on NonGAAP Measures

Arthur J. Gallagher & Co.

Information Regarding Non-GAAP Measures

4th Quarter ended December 31, 2021

Page 1

Cognos_Office_Connection_Cache

Brokerage

Arthur J. Gallagher & Co.
Brokerage Segment Statement of Earnings - As Reported
Quarterly Trend - 2017 to 2021
(Unaudited - in millions except share and per share data)
BROKERAGE SEGMENT	2017 Reported	2018 Reported	2019 Reported	2020 Reported	2021 Reported
Statement of Earnings	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY
Commissions	$ 760.7	$ 618.2	$ 637.9	$ 624.2	$ 2,641.0	$ 839.4	$ 688.0	$ 707.6	$ 685.7	$ 2,920.7	$ 940.4	$ 777.7	$ 809.9	$ 792.6	$ 3,320.6	$ 1,017.2	$ 827.5	$ 889.9	$ 857.3	$ 3,591.9	$ 1,125.4	$ 977.1	$ 1,016.2	$ 1,013.6	$ 4,132.3
Fees	228.3	205.5	225.7	195.6	855.1	253.2	220.4	253.7	231.2	958.5	261.8	256.1	278.9	277.4	1,074.2	295.8	269.1	293.2	278.8	1,136.9	333.6	296.0	353.8	313.5	1,296.9
Supplemental revenues	47.3	35.8	36.9	38.0	158.0	52.0	48.1	43.9	45.9	189.9	56.7	46.9	49.8	57.1	210.5	59.0	50.3	54.7	57.9	221.9	66.8	55.2	61.0	65.7	248.7
Contingent revenues	35.0	21.3	21.8	21.4	99.5	34.9	21.8	25.7	15.6	98.0	48.0	29.5	30.4	27.7	135.6	45.1	37.4	34.5	30.0	147.0	63.3	43.3	43.7	37.7	188.0
Investment income and net gains on divestitures	13.6	15.3	16.4	16.2	61.5	16.1	21.8	18.5	23.4	79.8	75.0	21.0	26.9	37.7	160.6	18.5	16.8	22.3	11.8	69.4	21.1	18.6	25.0	36.9	101.6
Revenues	1,084.9	896.1	938.7	895.4	3,815.1	1,195.6	1,000.1	1,049.4	1,001.8	4,246.9	1,381.9	1,131.2	1,195.9	1,192.5	4,901.5	1,435.6	1,201.1	1,294.6	1,235.8	5,167.1	1,610.2	1,390.2	1,499.7	1,467.4	5,967.5
Compensation	568.6	534.4	553.4	555.9	2,212.3	625.4	584.3	622.1	615.3	2,447.1	677.2	659.3	694.1	715.3	2,745.9	752.8	672.4	729.5	727.8	2,882.5	821.7	773.4	827.9	829.4	3,252.4
Operating	149.5	151.2	149.2	164.1	614.0	162.4	164.7	170.5	175.9	673.5	198.0	191.0	197.2	210.3	796.5	204.9	162.2	153.9	166.2	687.2	170.1	176.8	190.6	220.4	757.9
Depreciation	14.9	16.1	14.9	15.9	61.8	14.8	14.3	16.3	15.5	60.9	16.2	16.4	16.4	17.6	66.6	17.6	17.8	18.3	19.8	73.5	22.1	21.1	21.8	22.8	87.8
Amortization	63.6	64.4	68.9	64.9	261.8	66.9	72.5	71.8	75.7	286.9	75.5	78.7	82.8	92.1	329.1	134.2	86.6	96.0	94.5	411.3	103.6	105.8	90.8	107.4	407.6
Change in estimated acquisition earnout payables	11.8	4.9	11.1	1.5	29.3	7.2	(6.3)	5.5	7.9	14.3	2.6	3.5	5.5	5.3	16.9	(84.7)	14.3	20.5	20.2	(29.7)	12.4	13.4	34.1	56.4	116.3
Expenses	808.4	771.0	797.5	802.3	3,179.2	876.7	829.5	886.2	890.3	3,482.7	969.5	948.9	996.0	1,040.6	3,955.0	1,024.8	953.3	1,018.2	1,028.5	4,024.8	1,129.9	1,090.5	1,165.2	1,236.4	4,622.0
Earnings from continuing operations before income taxes	276.5	125.1	141.2	93.1	635.9	318.9	170.6	163.2	111.5	764.2	412.4	182.3	199.9	151.9	946.5	410.8	247.8	276.4	207.3	1,142.3	480.3	299.7	334.5	231.0	1,345.5
Provision for income taxes	96.9	42.7	47.2	34.4	221.2	79.7	43.1	41.0	27.2	191.0	102.9	44.3	48.8	33.2	229.2	99.4	57.6	69.7	49.6	276.3	115.9	72.1	80.9	60.0	328.9
Earnings from continuing operations	179.6	82.4	94.0	58.7	414.7	239.2	127.5	122.2	84.3	573.2	309.5	138.0	151.1	118.7	717.3	311.4	190.2	206.7	157.7	866.0	364.4	227.6	253.6	171.0	1,016.6
Earnings (loss) from continuing operations
attributable to noncontrolling interests	6.4	1.9	(0.6)	(0.1)	7.6	5.0	2.1	1.6	2.0	10.7	9.8	5.1	3.4	(1.1)	17.2	0.7	1.5	0.9	1.8	4.9	1.8	2.6	1.2	2.8	8.4
Earnings from continuing operations
attributable to controlling interests	$ 173.2	$ 80.5	$ 94.6	$ 58.8	$ 407.1	$ 234.2	$ 125.4	$ 120.6	$ 82.3	$ 562.5	$ 299.7	$ 132.9	$ 147.7	$ 119.8	$ 700.1	$ 310.7	$ 188.7	$ 205.8	$ 155.9	$ 861.1	$ 362.6	$ 225.0	$ 252.4	$ 168.2	$ 1,008.2
Diluted earnings from continuing operations per share	$ 0.96	$ 0.44	$ 0.52	$ 0.32	$ 2.23	$ 1.26	$ 0.68	$ 0.65	$ 0.44	$ 3.02	$ 1.59	$ 0.70	$ 0.77	$ 0.63	$ 3.68	$ 1.61	$ 0.97	$ 1.05	$ 0.79	$ 4.42	$ 1.82	$ 1.09	$ 1.19	$ 0.79	$ 4.86
Change in diluted earnings from continuing ops per share	31%	55%	25%	38%	35%	26%	3%	18%	43%	22%	1%	39%	36%	25%	20%	13%	12%	14%	0%	10%
Change in revenues	10%	12%	12%	12%	11%	16%	13%	14%	19%	15%	4%	6%	8%	4%	5%	12%	16%	16%	19%	15%
Organic change in commissions and fees	3%	4%	4%	7%	4%	5%	5%	6%	6%	5%	5%	6%	6%	6%	6%	4%	1%	4%	3%	3%	5%	7%	9%	10%	8%
Compensation expense ratio	52%	60%	59%	62%	58%	52%	58%	59%	61%	58%	49%	58%	58%	60%	56%	52%	56%	56%	59%	56%	51%	56%	55%	57%	55%
Operating expense ratio	14%	17%	16%	18%	16%	14%	16%	16%	18%	16%	14%	17%	16%	18%	16%	14%	14%	12%	13%	13%	11%	13%	13%	15%	13%
Effective tax rate	35%	34%	33%	37%	35%	25%	25%	25%	24%	25%	25%	24%	24%	22%	24%	24%	23%	25%	24%	24%	24%	24%	24%	26%	24%
Other Information
Diluted weighted average shares outstanding (000s)	180,591	181,609	182,517	183,575	182,115	184,953	185,491	186,766	187,513	186,164	188,362	189,768	190,674	191,755	190,145	193,239	194,050	196,345	197,420	195,048	199,076	205,826	211,498	212,864	207,346
Common shares issued for acquisitions and earnouts (000s)	259	252	257	273	1,041	93	213	527	48	881	464	132	100	1,212	1,908	694	1,213	373	729	3,009	576	92	242	821	1,731
Number of acquisitions closed	12	9	6	9	36	6	12	9	17	44	11	13	11	11	46	8	4	5	10	27	5	7	5	19	36
Annualized revenues acquired (in millions)	$ 62.5	$ 30.3	$ 36.9	$ 29.3	$ 159.0	$ 26.7	$ 145.2	$ 61.7	$ 84.3	$ 317.9	$ 71.2	$ 194.5	$ 69.2	$ 117.4	$ 452.3	$ 124.2	$ 13.9	$ 13.1	$ 100.2	$ 251.4	$ 89.7	$ 34.1	$ 16.1	$ 812.1	$ 952.0
Headcount	19,116	19,425	19,715	20,049	20,427	21,944	22,345	22,934	23,130	23,940	24,722	25,211	25,841	25,051	24,384	24,717	25,870	26,446	26,877	29,869
EBITDAC
Earnings from continuing operations	$ 179.6	$ 82.4	$ 94.0	$ 58.7	$ 414.7	$ 239.2	$ 127.5	$ 122.2	$ 84.3	$ 573.2	$ 309.5	$ 138.0	$ 151.1	$ 118.7	$ 717.3	$ 311.4	$ 190.2	$ 206.7	$ 157.7	$ 866.0	$ 364.4	$ 227.6	$ 253.6	$ 171.0	$ 1,016.6
Provision for income taxes	96.9	42.7	47.2	34.4	221.2	79.7	43.1	41.0	27.2	191.0	102.9	44.3	48.8	33.2	229.2	99.4	57.6	69.7	49.6	276.3	115.9	72.1	80.9	60.0	328.9
Depreciation	14.9	16.1	14.9	15.9	61.8	14.8	14.3	16.3	15.5	60.9	16.2	16.4	16.4	17.6	66.6	17.6	17.8	18.3	19.8	73.5	22.1	21.1	21.8	22.8	87.8
Amortization	63.6	64.4	68.9	64.9	261.8	66.9	72.5	71.8	75.7	286.9	75.5	78.7	82.8	92.1	329.1	134.2	86.6	96.0	94.5	411.3	103.6	105.8	90.8	107.4	407.6
Change in estimated acquisition earnout payables	11.8	4.9	11.1	1.5	29.3	7.2	(6.3)	5.5	7.9	14.3	2.6	3.5	5.5	5.3	16.9	(84.7)	14.3	20.5	20.2	(29.7)	12.4	13.4	34.1	56.4	116.3
EBITDAC	$ 366.8	$ 210.5	$ 236.1	$ 175.4	$ 988.8	$ 407.8	$ 251.1	$ 256.8	$ 210.6	$ 1,126.3	$ 506.7	$ 280.9	$ 304.6	$ 266.9	$ 1,359.1	$ 477.9	$ 366.5	$ 411.2	$ 341.8	$ 1,597.4	$ 618.4	$ 440.0	$ 481.2	$ 417.6	$ 1,957.2
EBITDAC margin	34%	23%	25%	20%	26%	34%	25%	24%	21%	27%	37%	25%	25%	22%	28%	33%	31%	32%	28%	31%	38%	32%	32%	28%	33%
EBITDAC growth	11%	19%	9%	20%	14%	24%	12%	19%	27%	21%	-6%	30%	35%	28%	18%	29%	20%	17%	22%	23%
Page 2
Arthur J. Gallagher & Co.
Non-GAAP Adjustments to Brokerage Segment Statement of Earnings
Quarterly Trend - 2017 to 2021
(Unaudited - in millions except share and per share data)
BROKERAGE SEGMENT	2017 Adjustments	2018 Adjustments	2019 Adjustments	2020 Adjustments	2021 Adjustments
Statement of Earnings	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY
Commissions	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0
Fees	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Supplemental revenues	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Contingent revenues	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Investment income and net gains on divestitures (1)	(1.4)	(1.1)	(0.6)	(0.3)	(3.4)	(2.9)	(6.1)	(0.6)	(0.6)	(10.2)	(57.1)	(1.9)	(3.3)	(13.0)	(75.3)	(0.2)	(1.0)	(3.4)	10.4	5.8	(4.1)	(0.5)	(4.3)	(9.9)	(18.8)
Revenues	(1.4)	(1.1)	(0.6)	(0.3)	(3.4)	(2.9)	(6.1)	(0.6)	(0.6)	(10.2)	(57.1)	(1.9)	(3.3)	(13.0)	(75.3)	(0.2)	(1.0)	(3.4)	10.4	5.8	(4.1)	(0.5)	(4.3)	(9.9)	(18.8)
Compensation (2)	(6.9)	(10.6)	(9.4)	(11.2)	(38.1)	(6.6)	(8.7)	(19.6)	(14.1)	(49.0)	(4.8)	(16.7)	(17.4)	(25.5)	(64.4)	(14.0)	(21.2)	(20.1)	(14.5)	(69.8)	(14.2)	(14.1)	(12.5)	(25.1)	(65.9)
Operating (3)	(2.2)	(1.8)	(0.9)	(11.0)	(15.9)	(3.7)	(0.6)	(1.5)	(1.5)	(7.3)	(17.5)	(2.3)	(5.6)	(5.2)	(30.6)	(3.8)	(4.6)	(3.7)	(6.3)	(18.4)	(1.2)	(3.9)	(3.0)	(5.7)	(13.8)
Depreciation (3)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	(1.8)	-0	(0.3)	(0.1)	(2.2)
Amortization (4) (6)	(63.6)	(64.4)	(68.9)	(64.9)	(261.8)	(66.9)	(72.5)	(71.8)	(75.7)	(286.9)	(75.5)	(78.7)	(82.8)	(92.1)	(329.1)	(134.2)	(86.6)	(96.0)	(94.5)	(411.3)	(103.6)	(105.8)	(90.8)	(107.4)	(407.6)
Change in estimated acquisition earnout payables (5) (6)	(6.7)	0.1	(6.3)	3.3	(9.6)	(2.4)	10.9	(1.3)	(4.0)	3.2	2.7	2.1	1.5	3.0	9.3	95.2	(6.7)	(14.8)	(12.0)	61.7	(3.6)	(4.5)	(26.2)	(47.3)	(81.6)
Expenses	(79.4)	(76.7)	(85.5)	(83.8)	(325.4)	(79.6)	(70.9)	(94.2)	(95.3)	(340.0)	(95.1)	(95.6)	(104.3)	(119.8)	(414.8)	(56.8)	(119.1)	(134.6)	(127.3)	(437.8)	(124.4)	(128.3)	(132.8)	(185.6)	(571.1)
Earnings from continuing operations before income taxes	78.0	75.6	84.9	83.5	322.0	76.7	64.8	93.6	94.7	329.8	38.0	93.7	101.0	106.8	339.5	56.6	118.1	131.2	137.7	443.6	120.3	127.8	128.5	175.7	552.3
Provision for income taxes (7)	26.2	25.4	28.9	26.5	107.0	19.1	16.2	23.4	23.7	82.4	6.6	22.0	22.2	29.3	80.1	13.3	27.9	31.1	31.0	103.3	27.9	30.4	29.3	38.0	125.6
Earnings from continuing operations	51.8	50.2	56.0	57.0	215.0	57.6	48.6	70.2	71.0	247.4	31.4	71.7	78.8	77.5	259.4	43.3	90.2	100.1	106.7	340.3	92.4	97.4	99.2	137.7	426.7
Earnings from continuing operations
attributable to noncontrolling interests	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Earnings from continuing operations
attributable to controlling interests	$ 51.8	$ 50.2	$ 56.0	$ 57.0	$ 215.0	$ 57.6	$ 48.6	$ 70.2	$ 71.0	$ 247.4	$ 31.4	$ 71.7	$ 78.8	$ 77.5	$ 259.4	$ 43.3	$ 90.2	$ 100.1	$ 106.7	$ 340.3	$ 92.4	$ 97.4	$ 99.2	$ 137.7	$ 426.7
Diluted earnings from continuing operations per share	$ 0.29	$ 0.28	$ 0.31	$ 0.31	$ 1.18	$ 0.31	$ 0.26	$ 0.37	$ 0.38	$ 1.33	$ 0.16	$ 0.39	$ 0.42	$ 0.40	$ 1.36	$ 0.22	$ 0.46	$ 0.51	$ 0.54	1.73	$ 0.46	$ 0.48	$ 0.46	$ 0.65	2.06
EBITDAC
Earnings from continuing operations	$ 51.8	$ 50.2	$ 56.0	$ 57.0	$ 215.0	$ 57.6	$ 48.6	$ 70.2	$ 71.0	$ 247.4	$ 31.4	$ 71.7	$ 78.8	$ 77.5	$ 259.4	$ 43.3	$ 90.2	$ 100.1	$ 106.7	$ 340.3	$ 92.4	$ 97.4	$ 99.2	$ 137.7	$ 426.7
Provision for income taxes	26.2	25.4	28.9	26.5	107.0	19.1	16.2	23.4	23.7	82.4	6.6	22.0	22.2	29.3	80.1	13.3	27.9	31.1	31.0	103.3	27.9	30.4	29.3	38.0	125.6
Depreciation	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	(1.8)	-0	(0.3)	(0.1)	(2.2)
Amortization	(63.6)	(64.4)	(68.9)	(64.9)	(261.8)	(66.9)	(72.5)	(71.8)	(75.7)	(286.9)	(75.5)	(78.7)	(82.8)	(92.1)	(329.1)	(134.2)	(86.6)	(96.0)	(94.5)	(411.3)	(103.6)	(105.8)	(90.8)	(107.4)	(407.6)
Change in estimated acquisition earnout payables	(6.7)	0.1	(6.3)	3.3	(9.6)	(2.4)	10.9	(1.3)	(4.0)	3.2	2.7	2.1	1.5	3.0	9.3	95.2	(6.7)	(14.8)	(12.0)	61.7	(3.6)	(4.5)	(26.2)	(47.3)	(81.6)
EBITDAC	$ 7.7	$ 11.3	$ 9.7	$ 21.9	$ 50.6	$ 7.4	$ 3.2	$ 20.5	$ 15.0	$ 46.1	$ (34.8)	$ 17.1	$ 19.7	$ 17.7	$ 19.7	$ 17.6	$ 24.8	$ 20.4	$ 31.2	$ 94.0	$ 11.3	$ 17.5	$ 11.2	$ 20.9	$ 60.9
(1) To remove net gains or losses from divestitures and sub-lease income.
(2) To eliminate severance charges, acquisition related integration costs and earnout related compensation charges.
(3) To eliminate lease termination and abandonment charges, acquisition related integration costs and costs related to divestitures.
(4) To remove the impacts of acquisition valuation true-ups, impairment charges and intangible asset amortization.
(5) To remove adjustments to the estimated acquisition earnout payables.
(6) The Q1 2020 impairment charge and adjustment to earnout payable has also been removed to improve comparability for modelling purposes only.
(7) To adjust Q1 to Q3 2019 quarters for the change in the U.S. effective income tax rate that occurred in Q4 2019.
See information regarding Non-GAAP Financial Measures on Page 1 of these exhibits.
Page 3
Arthur J. Gallagher & Co.
Non-GAAP Brokerage Segment Statement of Earnings - As Adjusted - Sequential
Quarterly Trend - 2017 to 2021
(Unaudited - in millions except share and per share data)
BROKERAGE SEGMENT	2017 Adjusted	2018 Adjusted	2019 Adjusted	2020 Adjusted	2021 Adjusted
Statement of Earnings	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY
Commissions	$ 760.7	$ 618.2	$ 637.9	$ 624.2	$ 2,641.0	$ 839.4	$ 688.0	$ 707.6	$ 685.7	$ 2,920.7	$ 940.4	$ 777.7	$ 809.9	$ 792.6	$ 3,320.6	$ 1,017.2	$ 827.5	$ 889.9	$ 857.3	$ 3,591.9	$ 1,125.4	$ 977.1	$ 1,016.2	$ 1,013.6	$ 4,132.3
Fees	228.3	205.5	225.7	195.6	855.1	253.2	220.4	253.7	231.2	958.5	261.8	256.1	278.9	277.4	1,074.2	295.8	269.1	293.2	278.8	1,136.9	333.6	296.0	353.8	313.5	1,296.9
Supplemental revenues	47.3	35.8	36.9	38.0	158.0	52.0	48.1	43.9	45.9	189.9	56.7	46.9	49.8	57.1	210.5	59.0	50.3	54.7	57.9	221.9	66.8	55.2	61.0	65.7	248.7
Contingent revenues	35.0	21.3	21.8	21.4	99.5	34.9	21.8	25.7	15.6	98.0	48.0	29.5	30.4	27.7	135.6	45.1	37.4	34.5	30.0	147.0	63.3	43.3	43.7	37.7	188.0
Investment income and net gains on divestitures	12.2	14.2	15.8	15.9	58.1	13.2	15.7	17.9	22.8	69.6	17.9	19.1	23.6	24.7	85.3	18.3	15.8	18.9	22.2	75.2	17.0	18.1	20.7	27.0	82.8
Revenues	1,083.5	895.0	938.1	895.1	3,811.7	1,192.7	994.0	1,048.8	1,001.2	4,236.7	1,324.8	1,129.3	1,192.6	1,179.5	4,826.2	1,435.4	1,200.1	1,291.2	1,246.2	5,172.9	1,606.1	1,389.7	1,495.4	1,457.5	5,948.7
Compensation	561.7	523.8	544.0	544.7	2,174.2	618.8	575.6	602.5	601.2	2,398.1	672.4	642.6	676.7	689.8	2,681.5	738.8	651.2	709.4	713.3	2,812.7	807.5	759.3	815.4	804.3	3,186.5
Operating	147.3	149.4	148.3	153.1	598.1	158.7	164.1	169.0	174.4	666.2	180.5	188.7	191.6	205.1	765.9	201.1	157.6	150.2	159.9	668.8	168.9	172.9	187.6	214.7	744.1
Depreciation	14.9	16.1	14.9	15.9	61.8	14.8	14.3	16.3	15.5	60.9	16.2	16.4	16.4	17.6	66.6	17.6	17.8	18.3	19.8	73.5	20.3	21.1	21.5	22.7	85.6
Amortization	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Change in estimated acquisition earnout payables	5.1	5.0	4.8	4.8	19.7	4.8	4.6	4.2	3.9	17.5	5.3	5.6	7.0	8.3	26.2	10.5	7.6	5.7	8.2	32.0	8.8	8.9	7.9	9.1	34.7
Expenses	729.0	694.3	712.0	718.5	2,853.8	797.1	758.6	792.0	795.0	3,142.7	874.4	853.3	891.7	920.8	3,540.2	968.0	834.2	883.6	901.2	3,587.0	1,005.5	962.2	1,032.4	1,050.8	4,050.9
Earnings from continuing operations before income taxes	354.5	200.7	226.1	176.6	957.9	395.6	235.4	256.8	206.2	1,094.0	450.4	276.0	300.9	258.7	1,286.0	467.4	365.9	407.6	345.0	1,585.9	600.6	427.5	463.0	406.7	1,897.8
Provision for income taxes	123.1	68.1	76.1	60.9	328.2	98.8	59.3	64.4	50.9	273.4	109.5	66.3	71.0	62.5	309.3	112.7	85.5	100.8	80.6	379.6	143.8	102.5	110.2	98.0	454.5
Earnings from continuing operations	231.4	132.6	150.0	115.7	629.7	296.8	176.1	192.4	155.3	820.6	340.9	209.7	229.9	196.2	976.7	354.7	280.4	306.8	264.4	1,206.3	456.8	325.0	352.8	308.7	1,443.3
Earnings (loss) from continuing operations
attributable to noncontrolling interests	6.4	1.9	(0.6)	(0.1)	7.6	5.0	2.1	1.6	2.0	10.7	9.8	5.1	3.4	(1.1)	17.2	0.7	1.5	0.9	1.8	4.9	1.8	2.6	1.2	2.8	8.4
Earnings from continuing operations
attributable to controlling interests	$ 225.0	$ 130.7	$ 150.6	$ 115.8	$ 622.1	$ 291.8	$ 174.0	$ 190.8	$ 153.3	$ 809.9	$ 331.1	$ 204.6	$ 226.5	$ 197.3	$ 959.5	$ 354.0	$ 278.9	$ 305.9	$ 262.6	$ 1,201.4	$ 455.0	$ 322.4	$ 351.6	$ 305.9	$ 1,434.9
Diluted earnings from continuing operations per share	$ 1.25	$ 0.72	$ 0.83	$ 0.63	$ 3.42	$ 1.58	$ 0.94	$ 1.02	$ 0.82	$ 4.35	$ 1.75	$ 1.09	$ 1.19	$ 1.03	$ 5.04	$ 1.83	$ 1.43	$ 1.56	$ 1.33	6.15	$ 2.28	$ 1.57	$ 1.66	$ 1.44	6.92
Change in diluted earnings from continuing ops per share	26%	31%	24%	29%	27%	11%	15%	16%	26%	16%	5%	32%	31%	29%	22%	24%	10%	6%	8%	13%
Change in revenues	10%	11%	12%	12%	11%	11%	14%	14%	18%	14%	8%	6%	8%	6%	7%	12%	16%	16%	17%	15%
Organic change in commissions and fees	3%	4%	4%	7%	4%	5%	5%	6%	6%	5%	5%	6%	6%	6%	6%	4%	1%	4%	3%	3%	5%	7%	9%	10%	8%
Compensation expense ratio	52%	59%	58%	61%	57%	52%	58%	57%	60%	57%	51%	57%	57%	58%	56%	51%	54%	55%	57%	54%	50%	55%	55%	55%	54%
Operating expense ratio	14%	17%	16%	17%	16%	13%	17%	16%	17%	16%	14%	17%	16%	17%	16%	14%	13%	12%	13%	13%	11%	12%	13%	15%	13%
Effective tax rate	35%	34%	34%	34%	34%	25%	25%	25%	25%	25%	24%	24%	24%	24%	24%	24%	23%	25%	23%	24%	24%	24%	24%	24%	24%
Other Information
Diluted weighted average shares outstanding (000s)	180,591	181,609	182,517	183,575	182,115	184,953	185,491	186,766	187,513	186,164	188,362	189,768	190,674	191,755	190,145	193,239	194,050	196,345	197,420	195,048	199,076	205,826	211,498	212,864	207,346
Common shares issued for acquisitions and earnouts (000s)	259	252	257	273	1,041	93	213	527	48	881	464	132	100	1,212	1,908	694	1,213	373	729	3,009	576	92	242	821	1,731
Number of acquisitions closed	12	9	6	9	36	6	12	9	17	44	11	13	11	11	46	8	4	5	10	27	5	7	5	19	36
Annualized revenues acquired (in millions)	$ 62.5	$ 30.3	$ 36.9	$ 29.3	$ 159.0	$ 26.7	$ 145.2	$ 61.7	$ 84.3	$ 317.9	$ 71.2	$ 194.5	$ 69.2	$ 117.4	$ 452.3	$ 124.2	$ 13.9	$ 13.1	$ 100.2	$ 251.4	$ 89.7	$ 34.1	$ 16.1	$ 812.1	$ 952.0
Headcount	19,116	19,425	19,715	20,049	20,427	21,944	22,345	22,934	23,130	23,940	24,722	25,211	25,841	25,051	24,384	24,717	25,870	26,446	26,877	29,869
EBITDAC
Earnings from continuing operations	$ 231.4	$ 132.6	$ 150.0	$ 115.7	$ 629.7	$ 296.8	$ 176.1	$ 192.4	$ 155.3	$ 820.6	$ 340.9	$ 209.7	$ 229.9	$ 196.2	$ 976.7	$ 354.7	$ 280.4	$ 306.8	$ 264.4	$ 1,206.3	$ 456.8	$ 325.0	$ 352.8	$ 308.7	$ 1,443.3
Provision for income taxes	123.1	68.1	76.1	60.9	328.2	98.8	59.3	64.4	50.9	273.4	109.5	66.3	71.0	62.5	309.3	112.7	85.5	100.8	80.6	379.6	143.8	102.5	110.2	98.0	454.5
Depreciation	14.9	16.1	14.9	15.9	61.8	14.8	14.3	16.3	15.5	60.9	16.2	16.4	16.4	17.6	66.6	17.6	17.8	18.3	19.8	73.5	20.3	21.1	21.5	22.7	85.6
Amortization	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Change in estimated acquisition earnout payables	5.1	5.0	4.8	4.8	19.7	4.8	4.6	4.2	3.9	17.5	5.3	5.6	7.0	8.3	26.2	10.5	7.6	5.7	8.2	32.0	8.8	8.9	7.9	9.1	34.7
EBITDAC	$ 374.5	$ 221.8	$ 245.8	$ 197.3	$ 1,039.4	$ 415.2	$ 254.3	$ 277.3	$ 225.6	$ 1,172.4	$ 471.9	$ 298.0	$ 324.3	$ 284.6	$ 1,378.8	$ 495.5	$ 391.3	$ 431.6	$ 373.0	$ 1,691.4	$ 629.7	$ 457.5	$ 492.4	$ 438.5	$ 2,018.1
EBITDAC margin	35%	25%	26%	22%	27%	35%	26%	26%	23%	28%	36%	26%	27%	24%	29%	35%	33%	33%	30%	33%	39%	33%	33%	30%	34%
EBITDAC growth (decline)	11%	15%	13%	14%	13%	14%	17%	17%	26%	18%	5%	31%	33%	31%	23%	27%	17%	14%	18%	19%
Note: This page is the result of adding the Adjustments on Page 3 to Reported on Page 2.
See information regarding Non-GAAP Financial Measures on Page 1 of these exhibits.
Page 4

Risk Management

Arthur J. Gallagher & Co.
Risk Management Segment Statement of Earnings - As Reported
Quarterly Trend - 2017 to 2021
(Unaudited - in millions except share and per share data)
RISK MANAGEMENT SEGMENT	2017 Reported	2018 Reported	2019 Reported	2020 Reported	2021 Reported
Statement of Earnings	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY
Fees	$ 176.7	$ 181.4	$ 190.5	$ 188.2	$ 736.8	$ 194.9	$ 201.8	$ 199.0	$ 202.1	$ 797.8	$ 202.9	$ 208.6	$ 211.2	$ 214.2	$ 836.9	$ 211.5	$ 190.6	$ 202.6	$ 216.3	$ 821.0	$ 220.2	$ 244.9	$ 247.9	$ 254.2	$ 967.2
Investment income	0.1	0.2	0.1	0.2	0.6	0.2	0.1	0.1	0.1	0.5	0.4	0.5	0.4	0.3	1.6	0.3	0.2	0.1	0.1	0.7	0.1	0.1	0.1	0.1	0.4
Revenues before reimbursements	176.8	181.6	190.6	188.4	737.4	195.1	201.9	199.1	202.2	798.3	203.3	209.1	211.6	214.5	838.5	211.8	190.8	202.7	216.4	821.7	220.3	245.0	248.0	254.3	967.6
Reimbursements	33.1	35.2	33.8	33.9	136.0	34.8	35.4	37.3	34.1	141.6	33.1	33.0	34.7	37.8	138.6	37.7	32.4	41.6	40.0	151.7	32.4	36.7	32.6	31.3	133.0
Total revenues	209.9	216.8	224.4	222.3	873.4	229.9	237.3	236.4	236.3	939.9	236.4	242.1	246.3	252.3	977.1	249.5	223.2	244.3	256.4	973.4	252.7	281.7	280.6	285.6	1,100.6
Compensation	108.2	111.8	113.6	113.3	446.9	119.0	121.3	122.4	127.0	489.7	124.8	128.8	129.1	133.0	515.7	130.9	126.1	128.6	131.9	517.5	134.1	145.9	148.9	151.8	580.7
Operating	38.4	40.3	42.6	43.5	164.8	44.2	45.9	43.1	41.4	174.6	44.4	46.5	47.5	46.5	184.9	45.9	36.2	35.9	44.6	162.6	46.4	51.5	55.4	56.5	209.8
Reimbursements	33.1	35.2	33.8	33.9	136.0	34.8	35.4	37.3	34.1	141.6	33.1	33.0	34.7	37.8	138.6	37.7	32.4	41.6	40.0	151.7	32.4	36.7	32.6	31.3	133.0
Depreciation	7.4	8.0	7.7	8.0	31.1	8.8	9.5	10.0	10.4	38.7	10.8	11.9	11.7	11.8	46.2	12.3	12.3	11.9	12.9	49.4	11.5	11.6	12.0	11.1	46.2
Amortization	0.7	0.7	0.7	0.8	2.9	1.3	0.9	1.0	1.1	4.3	1.0	1.0	1.4	1.5	4.9	1.4	1.6	1.4	1.6	6.0	1.6	2.2	2.1	1.6	7.5
Change in estimated acquisition earnout payables	-0	0.2	(0.5)	1.9	1.6	0.2	0.3	0.3	(5.5)	(4.7)	0.3	(0.1)	0.2	(2.0)	(1.6)	(4.3)	1.4	(0.4)	0.1	(3.2)	2.6	0.4	0.1	0.2	3.3
Expenses	187.8	196.2	197.9	201.4	783.3	208.3	213.3	214.1	208.5	844.2	214.4	221.1	224.6	228.6	888.7	223.9	210.0	219.0	231.1	884.0	228.6	248.3	251.1	252.5	980.5
Earnings from continuing operations before income taxes	22.1	20.6	26.5	20.9	90.1	21.6	24.0	22.3	27.8	95.7	22.0	21.0	21.7	23.7	88.4	25.6	13.2	25.3	25.3	89.4	24.1	33.4	29.5	33.1	120.1
Provision for income taxes	8.3	7.6	10.2	8.3	34.4	5.7	6.4	5.8	7.4	25.3	5.8	5.5	5.5	5.4	22.2	6.5	3.3	6.5	6.2	22.5	6.1	8.5	7.5	8.5	30.6
Earnings from continuing operations	13.8	13.0	16.3	12.6	55.7	15.9	17.6	16.5	20.4	70.4	16.2	15.5	16.2	18.3	66.2	19.1	9.9	18.8	19.1	66.9	18.0	24.9	22.0	24.6	89.5
Earnings from continuing operations
attributable to noncontrolling interests	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Earnings from continuing operations
attributable to controlling interests	$ 13.8	$ 13.0	$ 16.3	$ 12.6	$ 55.7	$ 15.9	$ 17.6	$ 16.5	$ 20.4	$ 70.4	$ 16.2	$ 15.5	$ 16.2	$ 18.3	$ 66.2	$ 19.1	$ 9.9	$ 18.8	$ 19.1	$ 66.9	$ 18.0	$ 24.9	$ 22.0	$ 24.6	$ 89.5
Diluted earnings from continuing operations per share	$ 0.08	$ 0.07	$ 0.09	$ 0.07	$ 0.31	$ 0.09	$ 0.09	$ 0.09	$ 0.11	$ 0.38	$ 0.09	$ 0.08	$ 0.09	$ 0.09	$ 0.35	$ 0.10	$ 0.05	$ 0.09	$ 0.10	$ 0.34	$ 0.09	$ 0.12	$ 0.10	$ 0.12	$ 0.43
Change in diluted earnings from continuing ops per share	13%	29%	0%	57%	23%	0%	-11%	0%	-18%	-8%	11%	-38%	0%	11%	-3%	-10%	140%	11%	20%	26%
Change in revenues (before reimbursements)	10%	11%	4%	7%	8%	4%	4%	6%	6%	5%	4%	-9%	-4%	1%	-2%	4%	28%	22%	18%	18%
Organic change in commissions and fees (before reimbursements)	2%	2%	8%	2%	4%	8%	10%	4%	7%	7%	4%	3%	6%	5%	4%	4%	-10%	-5%	0%	-3%	1%	20%	17%	13%	12%
Compensation expense ratio (before reimbursements)	61%	62%	60%	60%	61%	61%	60%	61%	63%	61%	61%	62%	61%	62%	62%	62%	66%	63%	61%	63%	61%	60%	60%	60%	60%
Operating expense ratio (before reimbursements)	22%	22%	22%	23%	22%	23%	23%	22%	20%	22%	22%	22%	22%	22%	22%	22%	19%	18%	21%	20%	21%	21%	22%	22%	22%
Effective tax rate	38%	37%	38%	40%	38%	26%	27%	26%	27%	26%	26%	26%	25%	23%	25%	25%	25%	26%	25%	25%	25%	25%	25%	26%	25%
Other Information
Diluted weighted average shares outstanding (000s)	180,591	181,609	182,517	183,575	182,115	184,953	185,491	186,766	187,513	186,164	188,362	189,768	190,674	191,755	190,145	193,239	194,050	196,345	197,420	195,048	199,076	205,826	211,498	212,864	207,346
Number of acquisitions closed	-	2	1	-	3	1	-	1	2	4	-	-	3	-	3	-	-	-	-	-	1	1	-	-	2
Annualized revenues acquired (in millions)	$ -0	$ 12.2	$ 1.1	$ -0	$ 13.3	$ 3.2	$ -0	$ 13.0	$ 5.7	$ 21.9	$ -0	$ -0	$ 15.9	$ -0	$ 15.9	$ -0	$ -0	$ -0	$ -0	$ -0	$ 14.0	$ 36.0	$ -0	$ -0	$ 50.0
Headcount	5,470	5,781	5,749	5,872	5,983	6,061	6,163	6,269	6,435	6,454	6,616	6,753	6,845	6,438	6,308	6,378	6,451	6,960	7,108	7,308
EBITDAC
Earnings from continuing operations	$ 13.8	$ 13.0	$ 16.3	$ 12.6	$ 55.7	$ 15.9	$ 17.6	$ 16.5	$ 20.4	$ 70.4	$ 16.2	$ 15.5	$ 16.2	$ 18.3	$ 66.2	$ 19.1	$ 9.9	$ 18.8	$ 19.1	$ 66.9	$ 18.0	$ 24.9	$ 22.0	$ 24.6	$ 89.5
Provision for income taxes	8.3	7.6	10.2	8.3	34.4	5.7	6.4	5.8	7.4	25.3	5.8	5.5	5.5	5.4	22.2	6.5	3.3	6.5	6.2	22.5	6.1	8.5	7.5	8.5	30.6
Depreciation	7.4	8.0	7.7	8.0	31.1	8.8	9.5	10.0	10.4	38.7	10.8	11.9	11.7	11.8	46.2	12.3	12.3	11.9	12.9	49.4	11.5	11.6	12.0	11.1	46.2
Amortization	0.7	0.7	0.7	0.8	2.9	1.3	0.9	1.0	1.1	4.3	1.0	1.0	1.4	1.5	4.9	1.4	1.6	1.4	1.6	6.0	1.6	2.2	2.1	1.6	7.5
Change in estimated acquisition earnout payables	-0	0.2	(0.5)	1.9	1.6	0.2	0.3	0.3	(5.5)	(4.7)	0.3	(0.1)	0.2	(2.0)	(1.6)	(4.3)	1.4	(0.4)	0.1	(3.2)	2.6	0.4	0.1	0.2	3.3
EBITDAC	$ 30.2	$ 29.5	$ 34.4	$ 31.6	$ 125.7	$ 31.9	$ 34.7	$ 33.6	$ 33.8	$ 134.0	$ 34.1	$ 33.8	$ 35.0	$ 35.0	$ 137.9	$ 35.0	$ 28.5	$ 38.2	$ 39.9	$ 141.6	$ 39.8	$ 47.6	$ 43.7	$ 46.0	$ 177.1
EBITDAC margin (before reimbursements)	17%	16%	18%	17%	17%	16%	17%	17%	17%	17%	17%	16%	17%	16%	16%	17%	15%	19%	18%	17%	18%	19%	18%	18%	18%
EBITDAC growth (decline)	6%	18%	-2%	7%	7%	7%	-3%	4%	4%	3%	3%	-16%	9%	14%	3%	14%	67%	14%	15%	25%
Page 5
Arthur J. Gallagher & Co.
Non-GAAP Adjustments to Risk Management Segment Statement of Earnings
Quarterly Trend - 2017 to 2021
(Unaudited - in millions except share and per share data)
RISK MANAGEMENT SEGMENT	2017 Adjustments	2018 Adjustments	2019 Adjustments	2020 Adjustments	2021 Adjustments
Statement of Earnings	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY
Fees	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0
Investment income (1)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	(0.1)	-0	-0	(0.1)
Revenues before reimbursements	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	(0.1)	-0	-0	(0.1)
Reimbursements	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Total revenues	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	(0.1)	-0	-0	(0.1)
Compensation (2)	(0.2)	(0.3)	(0.1)	(0.3)	(0.9)	(0.1)	(0.8)	(2.3)	(1.1)	(4.3)	(0.4)	(2.8)	(1.1)	(1.6)	(5.9)	(0.3)	(4.9)	(1.0)	(1.3)	(7.5)	(0.4)	(0.6)	(0.8)	(0.9)	(2.7)
Operating (3)	-0	-0	-0	-0	-0	(0.1)	(0.3)	-0	-0	(0.4)	-0	-0	(1.9)	(0.1)	(2.0)	-0	(0.1)	(0.1)	(0.2)	(0.4)	(0.3)	(0.2)	(3.8)	(0.5)	(4.8)
Reimbursements	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Depreciation (3)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	(0.9)	-0	(0.9)
Amortization (4)	(0.7)	(0.7)	(0.7)	(0.8)	(2.9)	(1.3)	(0.9)	(1.0)	(1.1)	(4.3)	(1.0)	(1.0)	(1.4)	(1.5)	(4.9)	(1.4)	(1.6)	(1.4)	(1.6)	(6.0)	(1.6)	(2.2)	(2.1)	(1.6)	(7.5)
Change in estimated acquisition earnout payables (5) (6)	-0	-0	0.6	(1.7)	(1.1)	0.1	-0	-0	5.9	6.0	-0	0.3	(0.1)	2.2	2.4	4.5	(1.3)	0.6	-0	3.8	(2.4)	(0.1)	0.2	-0	(2.3)
Expenses	(0.9)	(1.0)	(0.2)	(2.8)	(4.9)	(1.4)	(2.0)	(3.3)	3.7	(3.0)	(1.4)	(3.5)	(4.5)	(1.0)	(10.4)	2.8	(7.9)	(1.9)	(3.1)	(10.1)	(4.7)	(3.1)	(7.4)	(3.0)	(18.2)
Earnings (loss) from continuing operations before income taxes	0.9	1.0	0.2	2.8	4.9	1.4	2.0	3.3	(3.7)	3.0	1.4	3.5	4.5	1.0	10.4	(2.8)	7.9	1.9	3.1	10.1	4.7	3.0	7.4	3.0	18.1
Provision (benefit) for income taxes (7)	0.3	0.4	0.2	0.9	1.8	0.3	0.5	0.9	(1.1)	0.6	0.1	0.7	1.0	0.7	2.5	(0.8)	2.1	0.4	0.7	2.4	1.2	0.7	1.9	0.7	4.5
Earnings (loss) from continuing operations	0.6	0.6	-0	1.9	3.1	1.1	1.5	2.4	(2.6)	2.4	1.3	2.8	3.5	0.3	7.9	(2.0)	5.8	1.5	2.4	7.7	3.5	2.3	5.5	2.3	13.6
Earnings from continuing operations
attributable to noncontrolling interests	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Earnings (loss) from continuing operations
attributable to controlling interests	$ 0.6	$ 0.6	$ -0	$ 1.9	$ 3.1	$ 1.1	$ 1.5	$ 2.4	$ (2.6)	$ 2.4	$ 1.3	$ 2.8	$ 3.5	$ 0.3	$ 7.9	$ (2.0)	$ 5.8	$ 1.5	$ 2.4	$ 7.7	$ 3.5	$ 2.3	$ 5.5	$ 2.3	$ 13.6
Diluted earnings from continuing operations per share	$ 0.00	$ 0.00	$ 0.00	$ 0.01	$ 0.02	$ 0.01	$ 0.01	$ 0.01	$ (0.02)	$ 0.01	$ 0.00	$ 0.01	$ 0.02	$ 0.01	$ 0.04	$ (0.01)	$ 0.03	$ 0.02	$ 0.02	0.05	$ 0.02	$ 0.01	$ 0.03	$ 0.02	0.07
EBITDAC
Earnings from continuing operations	$ 0.6	$ 0.6	$ -0	$ 1.9	$ 3.1	$ 1.1	$ 1.5	$ 2.4	$ (2.6)	$ 2.4	$ 1.3	$ 2.8	$ 3.5	$ 0.3	$ 7.9	$ (2.0)	$ 5.8	$ 1.5	$ 2.4	$ 7.7	$ 3.5	$ 2.3	$ 5.5	$ 2.3	$ 13.6
Provision (benefit) for income taxes	0.3	0.4	0.2	0.9	1.8	0.3	0.5	0.9	(1.1)	0.6	0.1	0.7	1.0	0.7	2.5	(0.8)	2.1	0.4	0.7	2.4	1.2	0.7	1.9	0.7	4.5
Depreciation	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	(0.9)	-0	(0.9)
Amortization	(0.7)	(0.7)	(0.7)	(0.8)	(2.9)	(1.3)	(0.9)	(1.0)	(1.1)	(4.3)	(1.0)	(1.0)	(1.4)	(1.5)	(4.9)	(1.4)	(1.6)	(1.4)	(1.6)	(6.0)	(1.6)	(2.2)	(2.1)	(1.6)	(7.5)
Change in estimated acquisition earnout payables	-0	-0	0.6	(1.7)	(1.1)	0.1	-0	-0	5.9	6.0	-0	0.3	(0.1)	2.2	2.4	4.5	(1.3)	0.6	-0	3.8	(2.4)	(0.1)	0.2	-0	(2.3)
EBITDAC	$ 0.2	$ 0.3	$ 0.1	$ 0.3	$ 0.9	$ 0.2	$ 1.1	$ 2.3	$ 1.1	$ 4.7	$ 0.4	$ 2.8	$ 3.0	$ 1.7	$ 7.9	$ 0.3	$ 5.0	$ 1.1	$ 1.5	$ 7.9	$ 0.7	$ 0.7	$ 4.6	$ 1.4	$ 7.4
(1) To remove sub-lease income.
(2) To eliminate severance charges, acquisition related integration costs and earnout related compensation charges.
(3) To eliminate lease termination and abandonment charges.
(4) To remove the impact of intangible asset amortization
(5) To remove adjustments to the estimated acquisition earnout payables.
(6) The Q1 2020 adjustment to earnout payable has also been removed to improve comparability for modelling purposes only.
(7) To adjust Q1 to Q3 2019 quarters for the change in the U.S. effective income tax rate that occurred in Q4 2019.
See information regarding Non-GAAP Financial Measures on Page 1 of these exhibits.
Page 6
Arthur J. Gallagher & Co.
Non-GAAP Risk Management Statement of Earnings - As Adjusted - Sequential
Quarterly Trend - 2017 to 2021
(Unaudited - in millions except share and per share data)
RISK MANAGEMENT SEGMENT	2017 Adjusted	2018 Adjusted	2019 Adjusted	2020 Adjusted	2021 Adjusted
Statement of Earnings	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY
Fees	$ 176.7	$ 181.4	$ 190.5	$ 188.2	$ 736.8	$ 194.9	$ 201.8	$ 199.0	$ 202.1	$ 797.8	$ 202.9	$ 208.6	$ 211.2	$ 214.2	$ 836.9	$ 211.5	$ 190.6	$ 202.6	$ 216.3	$ 821.0	$ 220.2	$ 244.9	$ 247.9	$ 254.2	$ 967.2
Investment income	0.1	0.2	0.1	0.2	0.6	0.2	0.1	0.1	0.1	0.5	0.4	0.5	0.4	0.3	1.6	0.3	0.2	0.1	0.1	0.7	0.1	-0	0.1	0.1	0.3
Revenues before reimbursements	176.8	181.6	190.6	188.4	737.4	195.1	201.9	199.1	202.2	798.3	203.3	209.1	211.6	214.5	838.5	211.8	190.8	202.7	216.4	821.7	220.3	244.9	248.0	254.3	967.5
Reimbursements	33.1	35.2	33.8	33.9	136.0	34.8	35.4	37.3	34.1	141.6	33.1	33.0	34.7	37.8	138.6	37.7	32.4	41.6	40.0	151.7	32.4	36.7	32.6	31.3	133.0
Revenues	209.9	216.8	224.4	222.3	873.4	229.9	237.3	236.4	236.3	939.9	236.4	242.1	246.3	252.3	977.1	249.5	223.2	244.3	256.4	973.4	252.7	281.6	280.6	285.6	1,100.5
Compensation	108.0	111.5	113.5	113.0	446.0	118.9	120.5	120.1	125.9	485.4	124.4	126.0	128.0	131.4	509.8	130.6	121.2	127.6	130.6	510.0	133.7	145.3	148.1	150.9	578.0
Operating	38.4	40.3	42.6	43.5	164.8	44.1	45.6	43.1	41.4	174.2	44.4	46.5	45.6	46.4	182.9	45.9	36.1	35.8	44.4	162.2	46.1	51.3	51.6	56.0	205.0
Reimbursements	33.1	35.2	33.8	33.9	136.0	34.8	35.4	37.3	34.1	141.6	33.1	33.0	34.7	37.8	138.6	37.7	32.4	41.6	40.0	151.7	32.4	36.7	32.6	31.3	133.0
Depreciation	7.4	8.0	7.7	8.0	31.1	8.8	9.5	10.0	10.4	38.7	10.8	11.9	11.7	11.8	46.2	12.3	12.3	11.9	12.9	49.4	11.5	11.6	11.1	11.1	45.3
Amortization	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Change in estimated acquisition earnout payables	-0	0.2	0.1	0.2	0.5	0.3	0.3	0.3	0.4	1.3	0.3	0.2	0.1	0.2	0.8	0.2	0.1	0.2	0.1	0.6	0.2	0.3	0.3	0.2	1.0
Expenses	186.9	195.2	197.7	198.6	778.4	206.9	211.3	210.8	212.2	841.2	213.0	217.6	220.1	227.6	878.3	226.7	202.1	217.1	228.0	873.9	223.9	245.2	243.7	249.5	962.3
Earnings from continuing operations before income taxes	23.0	21.6	26.7	23.7	95.0	23.0	26.0	25.6	24.1	98.7	23.4	24.5	26.2	24.7	98.8	22.8	21.1	27.2	28.4	99.5	28.8	36.4	36.9	36.1	138.2
Provision for income taxes	8.6	8.0	10.4	9.2	36.2	6.0	6.9	6.7	6.3	25.9	5.9	6.2	6.5	6.1	24.7	5.7	5.4	6.9	6.9	24.9	7.3	9.2	9.4	9.2	35.1
Earnings from continuing operations	14.4	13.6	16.3	14.5	58.8	17.0	19.1	18.9	17.8	72.8	17.5	18.3	19.7	18.6	74.1	17.1	15.7	20.3	21.5	74.6	21.5	27.2	27.5	26.9	103.1
Earnings from continuing operations
attributable to noncontrolling interests	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Earnings from continuing operations
attributable to controlling interests	$ 14.4	$ 13.6	$ 16.3	$ 14.5	$ 58.8	$ 17.0	$ 19.1	$ 18.9	$ 17.8	$ 72.8	$ 17.5	$ 18.3	$ 19.7	$ 18.6	$ 74.1	$ 17.1	$ 15.7	$ 20.3	$ 21.5	$ 74.6	$ 21.5	$ 27.2	$ 27.5	$ 26.9	$ 103.1
Diluted earnings from continuing operations per share	$ 0.08	$ 0.07	$ 0.09	$ 0.08	$ 0.33	$ 0.10	$ 0.10	$ 0.10	$ 0.09	$ 0.39	$ 0.09	$ 0.09	$ 0.10	$ 0.10	$ 0.39	$ 0.09	$ 0.08	$ 0.11	$ 0.12	$ 0.39	$ 0.11	$ 0.13	$ 0.13	$ 0.14	$ 0.50
Change in diluted earnings from continuing ops per share	15%	37%	12%	14%	19%	-1%	-5%	-3%	4%	-1%	-5%	-14%	7%	19%	-1%	18%	59%	19%	17%	29%
Change in revenues (before reimbursements)	10%	11%	4%	7%	8%	4%	4%	6%	6%	5%	4%	-9%	-4%	1%	-2%	4%	28%	22%	18%	18%
Organic change in commissions and fees (before reimbursements)	2%	2%	8%	2%	4%	8%	10%	4%	7%	7%	4%	3%	6%	5%	4%	4%	-10%	-5%	0%	-3%	1%	20%	17%	13%	12%
Compensation expense ratio (before reimbursements)	61%	61%	60%	60%	60%	61%	60%	60%	62%	61%	61%	60%	60%	61%	61%	62%	64%	63%	60%	62%	61%	59%	60%	59%	60%
Operating expense ratio (before reimbursements)	22%	22%	22%	23%	22%	23%	23%	22%	20%	22%	22%	22%	22%	22%	22%	22%	19%	18%	21%	20%	21%	21%	21%	22%	21%
Effective tax rate	37%	37%	39%	39%	38%	26%	27%	26%	26%	26%	25%	25%	25%	25%	25%	25%	26%	25%	24%	25%	25%	25%	25%	25%	25%
Other Information
Diluted weighted average shares outstanding (000s)	180,591	181,609	182,517	183,575	182,115	184,953	185,491	186,766	187,513	186,164	188,362	189,768	190,674	191,755	190,145	193,239	194,050	196,345	197,420	195,048	199,076	205,826	211,498	212,864	207,346
Number of acquisitions closed	-	2	1	-	3	1	-	1	2	4	-	-	3	-	3	-	-	-	-	-	1	1	-	-	2
Annualized revenues acquired (in millions)	$ -0	$ 12.2	$ 1.1	$ -0	$ 13.3	$ 3.2	$ -0	$ 13.0	$ 5.7	$ 21.9	$ -0	$ -0	$ 15.9	$ -0	$ 15.9	$ -0	$ -0	$ -0	$ -0	$ -0	$ 14.0	$ 36.0	$ -0	$ -0	$ 50.0
Headcount	5,470	5,781	5,749	5,872	5,983	6,061	6,163	6,269	6,435	6,454	6,616	6,753	6,845	6,438	6,308	6,378	6,451	6,960	7,108	7,308
EBITDAC
Earnings from continuing operations	$ 14.4	$ 13.6	$ 16.3	$ 14.5	$ 58.8	$ 17.0	$ 19.1	$ 18.9	$ 17.8	$ 72.8	$ 17.5	$ 18.3	$ 19.7	$ 18.6	$ 74.1	$ 17.1	$ 15.7	$ 20.3	$ 21.5	$ 74.6	$ 21.5	$ 27.2	$ 27.5	$ 26.9	$ 103.1
Provision for income taxes	8.6	8.0	10.4	9.2	36.2	6.0	6.9	6.7	6.3	25.9	5.9	6.2	6.5	6.1	24.7	5.7	5.4	6.9	6.9	24.9	7.3	9.2	9.4	9.2	35.1
Depreciation	7.4	8.0	7.7	8.0	31.1	8.8	9.5	10.0	10.4	38.7	10.8	11.9	11.7	11.8	46.2	12.3	12.3	11.9	12.9	49.4	11.5	11.6	11.1	11.1	45.3
Amortization	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Change in estimated acquisition earnout payables	-0	0.2	0.1	0.2	0.5	0.3	0.3	0.3	0.4	1.3	0.3	0.2	0.1	0.2	0.8	0.2	0.1	0.2	0.1	0.6	0.2	0.3	0.3	0.2	1.0
EBITDAC	$ 30.4	$ 29.8	$ 34.5	$ 31.9	$ 126.6	$ 32.1	$ 35.8	$ 35.9	$ 34.9	$ 138.7	$ 34.5	$ 36.6	$ 38.0	$ 36.7	$ 145.8	$ 35.3	$ 33.5	$ 39.3	$ 41.4	$ 149.5	$ 40.5	$ 48.3	$ 48.3	$ 47.4	$ 184.5
EBITDAC margin (before reimbursements)	17%	16%	18%	17%	17%	16%	18%	18%	17%	17%	17%	18%	18%	17%	17%	17%	18%	19%	19%	18%	18%	20%	19%	19%	19%
EBITDAC growth (decline)	6%	20%	4%	9%	10%	7%	2%	6%	5%	5%	2%	-8%	3%	13%	3%	15%	44%	23%	14%	23%
Note: This page is the result of adding the Adjustments on Page 6 to As Reported on Page 5.
See information regarding Non-GAAP Financial Measures on Page 1 of these exhibits.
Page 7

BRK - RM

Arthur J. Gallagher & Co.
Combined Brokerage and Risk Management Segments Statement of Earnings - As Reported
Quarterly Trend - 2017 to 2021
(Unaudited - in millions except share and per share data)
BROKERAGE AND RISK MANAGEMENT SEGMENTS COMBINED	2017 Reported	2018 Reported	2019 Reported	2020 Reported	2021 Reported
Statement of Earnings	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY
Commissions	$ 760.7	$ 618.2	$ 637.9	$ 624.2	$ 2,641.0	$ 839.4	$ 688.0	$ 707.6	$ 685.7	$ 2,920.7	$ 940.4	$ 777.7	$ 809.9	$ 792.6	$ 3,320.6	$ 1,017.2	$ 827.5	$ 889.9	$ 857.3	$ 3,591.9	$ 1,125.4	$ 977.1	$ 1,016.2	$ 1,013.6	$ 4,132.3
Fees	405.0	386.9	416.2	383.8	1,591.9	448.1	422.2	452.7	433.3	1,756.3	464.7	464.7	490.1	491.6	1,911.1	507.3	459.7	495.8	495.1	1,957.9	553.8	540.9	601.7	567.7	2,264.1
Supplemental revenues	47.3	35.8	36.9	38.0	158.0	52.0	48.1	43.9	45.9	189.9	56.7	46.9	49.8	57.1	210.5	59.0	50.3	54.7	57.9	221.9	66.8	55.2	61.0	65.7	248.7
Contingent revenues	35.0	21.3	21.8	21.4	99.5	34.9	21.8	25.7	15.6	98.0	48.0	29.5	30.4	27.7	135.6	45.1	37.4	34.5	30.0	147.0	63.3	43.3	43.7	37.7	188.0
Investment income and realized book gains	13.7	15.5	16.5	16.4	62.1	16.3	21.9	18.6	23.5	80.3	75.4	21.5	27.3	38.0	162.2	18.8	17.0	22.4	11.9	70.1	21.2	18.7	25.1	37.0	102.0
Revenues before reimbursements	1,261.7	1,077.7	1,129.3	1,083.8	4,552.5	1,390.7	1,202.0	1,248.5	1,204.0	5,045.2	1,585.2	1,340.3	1,407.5	1,407.0	5,740.0	1,647.4	1,391.9	1,497.3	1,452.2	5,988.8	1,830.5	1,635.2	1,747.7	1,721.7	6,935.1
Reimbursements	33.1	35.2	33.8	33.9	136.0	34.8	35.4	37.3	34.1	141.6	33.1	33.0	34.7	37.8	138.6	37.7	32.4	41.6	40.0	151.7	32.4	36.7	32.6	31.3	133.0
Total revenues	1,294.8	1,112.9	1,163.1	1,117.7	4,688.5	1,425.5	1,237.4	1,285.8	1,238.1	5,186.8	1,618.3	1,373.3	1,442.2	1,444.8	5,878.6	1,685.1	1,424.3	1,538.9	1,492.2	6,140.5	1,862.9	1,671.9	1,780.3	1,753.0	7,068.1
Compensation	676.8	646.2	667.0	669.2	2,659.2	744.4	705.6	744.5	742.3	2,936.8	802.0	788.1	823.2	848.3	3,261.6	883.7	798.5	858.1	859.7	3,400.0	955.8	919.3	976.8	981.2	3,833.1
Operating	187.9	191.5	191.8	207.6	778.8	206.6	210.6	213.6	217.3	848.1	242.4	237.5	244.7	256.8	981.4	250.8	198.4	189.8	210.8	849.8	216.5	228.3	246.0	276.9	967.7
Reimbursements	33.1	35.2	33.8	33.9	136.0	34.8	35.4	37.3	34.1	141.6	33.1	33.0	34.7	37.8	138.6	37.7	32.4	41.6	40.0	151.7	32.4	36.7	32.6	31.3	133.0
Depreciation	22.3	24.1	22.6	23.9	92.9	23.6	23.8	26.3	25.9	99.6	27.0	28.3	28.1	29.4	112.8	29.9	30.1	30.2	32.7	122.9	33.6	32.7	33.8	33.9	134.0
Amortization	64.3	65.1	69.6	65.7	264.7	68.2	73.4	72.8	76.8	291.2	76.5	79.7	84.2	93.6	334.0	135.6	88.2	97.4	96.1	417.3	105.2	108.0	92.9	109.0	415.1
Change in estimated acquisition earnout payables	11.8	5.1	10.6	3.4	30.9	7.4	(6.0)	5.8	2.4	9.6	2.9	3.4	5.7	3.3	15.3	(89.0)	15.7	20.1	20.3	(32.9)	15.0	13.8	34.2	56.6	119.6
Expenses	996.2	967.2	995.4	1,003.7	3,962.5	1,085.0	1,042.8	1,100.3	1,098.8	4,326.9	1,183.9	1,170.0	1,220.6	1,269.2	4,843.7	1,248.7	1,163.3	1,237.2	1,259.6	4,908.8	1,358.5	1,338.8	1,416.3	1,488.9	5,602.5
Earnings from continuing operations before income taxes	298.6	145.7	167.7	114.0	726.0	340.5	194.6	185.5	139.3	859.9	434.4	203.3	221.6	175.6	1,034.9	436.4	261.0	301.7	232.6	1,231.7	504.4	333.1	364.0	264.1	1,465.6
Provision for income taxes	105.2	50.3	57.4	42.7	255.6	85.4	49.5	46.8	34.6	216.3	108.7	49.8	54.3	38.6	251.4	105.9	60.9	76.2	55.8	298.8	122.0	80.6	88.4	68.5	359.5
Earnings from continuing operations	193.4	95.4	110.3	71.3	470.4	255.1	145.1	138.7	104.7	643.6	325.7	153.5	167.3	137.0	783.5	330.5	200.1	225.5	176.8	932.9	382.4	252.5	275.6	195.6	1,106.1
Earnings (loss) from continuing operations
attributable to noncontrolling interests	6.4	1.9	(0.6)	(0.1)	7.6	5.0	2.1	1.6	2.0	10.7	9.8	5.1	3.4	(1.1)	17.2	0.7	1.5	0.9	1.8	4.9	1.8	2.6	1.2	2.8	8.4
Earnings from continuing operations
attributable to controlling interests	$ 187.0	$ 93.5	$ 110.9	$ 71.4	$ 462.8	$ 250.1	$ 143.0	$ 137.1	$ 102.7	$ 632.9	$ 315.9	$ 148.4	$ 163.9	$ 138.1	$ 766.3	$ 329.8	$ 198.6	$ 224.6	$ 175.0	$ 928.0	$ 380.6	$ 249.9	$ 274.4	$ 192.8	$ 1,097.7
Diluted earnings from continuing operations per share	$ 1.04	$ 0.51	$ 0.61	$ 0.39	$ 2.54	$ 1.35	$ 0.77	$ 0.74	$ 0.55	$ 3.40	$ 1.68	$ 0.78	$ 0.86	$ 0.72	$ 4.03	$ 1.71	$ 1.02	$ 1.14	$ 0.89	$ 4.76	$ 1.91	$ 1.21	$ 1.30	$ 0.91	$ 5.29
Change in diluted earnings from continuing ops per share	30%	51%	21%	41%	34%	24%	1%	16%	31%	19%	2%	31%	33%	24%	18%	12%	19%	14%	2%	11%
Change in revenues (before reimbursements)	10%	12%	11%	11%	11%	14%	12%	13%	17%	14%	4%	4%	6%	3%	4%	11%	17%	17%	19%	16%
Organic change in commissions and fees (before reimbursements)	3%	3%	5%	6%	4%	5%	6%	6%	6%	6%	5%	6%	6%	5%	5%	4%	-1%	2%	3%	2%	4%	9%	10%	11%	8%
Compensation expense ratio (before reimbursements)	54%	60%	59%	62%	58%	54%	59%	60%	62%	58%	51%	59%	58%	60%	57%	54%	57%	57%	59%	57%	52%	56%	56%	57%	55%
Operating expense ratio (before reimbursements)	15%	18%	17%	19%	17%	15%	18%	17%	18%	17%	15%	18%	17%	18%	17%	15%	14%	13%	15%	14%	12%	14%	14%	16%	14%
Effective tax rate	35%	35%	34%	37%	35%	25%	25%	25%	25%	25%	25%	25%	25%	22%	24%	24%	23%	25%	24%	24%	24%	24%	24%	26%	25%
Other Information
Diluted weighted average shares outstanding (000s)	180,591	181,609	182,517	183,575	182,115	184,953	185,491	186,766	187,513	186,164	188,362	189,768	190,674	191,755	190,145	193,239	194,050	196,345	197,420	195,048	199,076	205,826	211,498	212,864	207,346
Common shares issued for acquisitions and earnouts (000s)	259	252	257	273	1,041	93	213	527	48	881	464	132	100	1,212	1,908	694	1,213	373	730	3,010	576	92	242	821	1,731
Number of acquisitions closed	12	11	7	9	39	7	12	10	19	48	11	13	14	11	49	8	4	5	10	27	6	8	5	19	38
Annualized revenues acquired (in millions)	$ 62.5	$ 42.5	$ 38.0	$ 29.3	$ 172.3	$ 29.9	$ 145.2	$ 74.7	$ 90.0	$ 339.8	$ 71.2	$ 194.5	$ 85.1	$ 117.4	$ 468.2	$ 124.2	$ 13.9	$ 13.1	$ 100.2	$ 251.4	$ 103.7	$ 70.1	$ 16.1	$ 812.1	$ 1,002.0
Headcount	24,586	25,206	25,464	25,921	26,410	28,005	28,508	29,203	29,565	30,394	31,338	31,964	32,686	31,489	30,692	31,095	32,321	33,406	33,985	37,177
EBITDAC
Earnings from continuing operations	$ 193.4	$ 95.4	$ 110.3	$ 71.3	$ 470.4	$ 255.1	$ 145.1	$ 138.7	$ 104.7	$ 643.6	$ 325.7	$ 153.5	$ 167.3	$ 137.0	$ 783.5	$ 330.5	$ 200.1	$ 225.5	$ 176.8	$ 932.9	$ 382.4	$ 252.5	$ 275.6	$ 195.6	$ 1,106.1
Provision for income taxes	105.2	50.3	57.4	42.7	255.6	85.4	49.5	46.8	34.6	216.3	108.7	49.8	54.3	38.6	251.4	105.9	60.9	76.2	55.8	298.8	122.0	80.6	88.4	68.5	359.5
Depreciation	22.3	24.1	22.6	23.9	92.9	23.6	23.8	26.3	25.9	99.6	27.0	28.3	28.1	29.4	112.8	29.9	30.1	30.2	32.7	122.9	33.6	32.7	33.8	33.9	134.0
Amortization	64.3	65.1	69.6	65.7	264.7	68.2	73.4	72.8	76.8	291.2	76.5	79.7	84.2	93.6	334.0	135.6	88.2	97.4	96.1	417.3	105.2	108.0	92.9	109.0	415.1
Change in estimated acquisition earnout payables	11.8	5.1	10.6	3.4	30.9	7.4	(6.0)	5.8	2.4	9.6	2.9	3.4	5.7	3.3	15.3	(89.0)	15.7	20.1	20.3	(32.9)	15.0	13.8	34.2	56.6	119.6
EBITDAC	$ 397.0	$ 240.0	$ 270.5	$ 207.0	$ 1,114.5	$ 439.7	$ 285.8	$ 290.4	$ 244.4	$ 1,260.3	$ 540.8	$ 314.7	$ 339.6	$ 301.9	$ 1,497.0	$ 512.9	$ 395.0	$ 449.4	$ 381.7	$ 1,739.0	$ 658.2	$ 487.6	$ 524.9	$ 463.6	$ 2,134.3
EBITDAC margin (before reimbursements)	31%	22%	24%	19%	24%	32%	24%	23%	20%	25%	34%	23%	24%	21%	26%	31%	28%	30%	26%	29%	36%	30%	30%	27%	31%
EBITDAC growth (decline)	11%	19%	7%	18%	13%	23%	10%	17%	24%	19%	-5%	26%	32%	26%	16%	28%	23%	17%	21%	23%
Page 8
Arthur J. Gallagher & Co.
Non-GAAP Adjustments to Brokerage and Risk Management Segments Statement of Earnings
Quarterly Trend - 2017 to 2021
(Unaudited - in millions except share and per share data)
BROKERAGE AND RISK MANAGEMENT SEGMENTS COMBINED	2017 Adjustments	2018 Adjustments	2019 Adjustments	2020 Adjustments	2021 Adjustments
Statement of Earnings	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY
Commissions	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0	$ -0
Fees	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Supplemental revenues	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Contingent revenues	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Investment income and realized book gains (1)	(1.4)	(1.1)	(0.6)	(0.3)	(3.4)	(2.9)	(6.1)	(0.6)	(0.6)	(10.2)	(57.1)	(1.9)	(3.3)	(13.0)	(75.3)	(0.2)	(1.0)	(3.4)	10.4	5.8	(4.1)	(0.6)	(4.3)	(9.9)	(18.9)
Revenues before reimbursements	(1.4)	(1.1)	(0.6)	(0.3)	(3.4)	(2.9)	(6.1)	(0.6)	(0.6)	(10.2)	(57.1)	(1.9)	(3.3)	(13.0)	(75.3)	(0.2)	(1.0)	(3.4)	10.4	5.8	(4.1)	(0.6)	(4.3)	(9.9)	(18.9)
Reimbursements	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Total revenues	(1.4)	(1.1)	(0.6)	(0.3)	(3.4)	(2.9)	(6.1)	(0.6)	(0.6)	(10.2)	(57.1)	(1.9)	(3.3)	(13.0)	(75.3)	(0.2)	(1.0)	(3.4)	10.4	5.8	(4.1)	(0.6)	(4.3)	(9.9)	(18.9)
Compensation (2)	(7.1)	(10.9)	(9.5)	(11.5)	(39.0)	(6.7)	(9.5)	(21.9)	(15.2)	(53.3)	(5.2)	(19.5)	(18.5)	(27.1)	(70.3)	(14.3)	(26.1)	(21.1)	(15.8)	(77.3)	(14.6)	(14.7)	(13.3)	(26.0)	(68.6)
Operating (3)	(2.2)	(1.8)	(0.9)	(11.0)	(15.9)	(3.8)	(0.9)	(1.5)	(1.5)	(7.7)	(17.5)	(2.3)	(7.5)	(5.3)	(32.6)	(3.8)	(4.7)	(3.8)	(6.5)	(18.8)	(1.5)	(4.1)	(6.8)	(6.2)	(18.6)
Reimbursements	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Depreciation (3)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	(1.8)	-0	(1.2)	(0.1)	(3.1)
Amortization (4) (6)	(64.3)	(65.1)	(69.6)	(65.7)	(264.7)	(68.2)	(73.4)	(72.8)	(76.8)	(291.2)	(76.5)	(79.7)	(84.2)	(93.6)	(334.0)	(135.6)	(88.2)	(97.4)	(96.1)	(417.3)	(105.2)	(108.0)	(92.9)	(109.0)	(415.1)
Change in estimated acquisition earnout payables (5) (6)	(6.7)	0.1	(5.7)	1.6	(10.7)	(2.3)	10.9	(1.3)	1.9	9.2	2.7	2.4	1.4	5.2	11.7	99.7	(8.0)	(14.2)	(12.0)	65.5	(6.0)	(4.6)	(26.0)	(47.3)	(83.9)
Expenses	(80.3)	(77.7)	(85.7)	(86.6)	(330.3)	(81.0)	(72.9)	(97.5)	(91.6)	(343.0)	(96.5)	(99.1)	(108.8)	(120.8)	(425.2)	(54.0)	(127.0)	(136.5)	(130.4)	(447.9)	(129.1)	(131.4)	(140.2)	(188.6)	(589.3)
Earnings from continuing operations before income taxes	78.9	76.6	85.1	86.3	326.9	78.1	66.8	96.9	91.0	332.8	39.4	97.2	105.5	107.8	349.9	53.8	126.0	133.1	140.8	453.7	125.0	130.8	135.9	178.7	570.4
Provision for income taxes (7)	26.5	25.8	29.1	27.4	108.8	19.4	16.7	24.3	22.6	83.0	6.7	22.7	23.2	30.0	82.6	12.5	30.0	31.5	31.7	105.7	29.1	31.1	31.2	38.7	130.1
Earnings from continuing operations	52.4	50.8	56.0	58.9	218.1	58.7	50.1	72.6	68.4	249.8	32.7	74.5	82.3	77.8	267.3	41.3	96.0	101.6	109.1	348.0	95.9	99.7	104.7	140.0	440.3
Earnings from continuing operations
attributable to noncontrolling interests	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Earnings from continuing operations
attributable to controlling interests	$ 52.4	$ 50.8	$ 56.0	$ 58.9	$ 218.1	$ 58.7	$ 50.1	$ 72.6	$ 68.4	$ 249.8	$ 32.7	$ 74.5	$ 82.3	$ 77.8	$ 267.3	$ 41.3	$ 96.0	$ 101.6	$ 109.1	$ 348.0	$ 95.9	$ 99.7	$ 104.7	$ 140.0	$ 440.3
Diluted earnings from continuing operations per share	$ 0.29	$ 0.28	$ 0.31	$ 0.33	$ 1.20	$ 0.32	$ 0.28	$ 0.39	$ 0.36	$ 1.34	$ 0.17	$ 0.40	$ 0.44	$ 0.41	$ 1.40	$ 0.21	$ 0.50	$ 0.52	$ 0.55	$ 1.78	$ 0.48	$ 0.49	$ 0.49	$ 0.66	$ 2.12
EBITDAC
Earnings from continuing operations	$ 52.4	$ 50.8	$ 56.0	$ 58.9	$ 218.1	$ 58.7	$ 50.1	$ 72.6	$ 68.4	$ 249.8	$ 32.7	$ 74.5	$ 82.3	$ 77.8	$ 267.3	$ 41.3	$ 96.0	$ 101.6	$ 109.1	$ 348.0	$ 95.9	$ 99.7	$ 104.7	$ 140.0	$ 440.3
Provision for income taxes	26.5	25.8	29.1	27.4	108.8	19.4	16.7	24.3	22.6	83.0	6.7	22.7	23.2	30.0	82.6	12.5	30.0	31.5	31.7	105.7	29.1	31.1	31.2	38.7	130.1
Depreciation	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	(1.8)	-0	(1.2)	(0.1)	(3.1)
Amortization	(64.3)	(65.1)	(69.6)	(65.7)	(264.7)	(68.2)	(73.4)	(72.8)	(76.8)	(291.2)	(76.5)	(79.7)	(84.2)	(93.6)	(334.0)	(135.6)	(88.2)	(97.4)	(96.1)	(417.3)	(105.2)	(108.0)	(92.9)	(109.0)	(415.1)
Change in estimated acquisition earnout payables	(6.7)	0.1	(5.7)	1.6	(10.7)	(2.3)	10.9	(1.3)	1.9	9.2	2.7	2.4	1.4	5.2	11.7	99.7	(8.0)	(14.2)	(12.0)	65.5	(6.0)	(4.6)	(26.0)	(47.3)	(83.9)
EBITDAC	$ 7.9	$ 11.6	$ 9.8	$ 22.2	$ 51.5	$ 7.6	$ 4.3	$ 22.8	$ 16.1	$ 50.8	$ (34.4)	$ 19.9	$ 22.7	$ 19.4	$ 27.6	$ 17.9	$ 29.8	$ 21.5	$ 32.7	$ 101.9	$ 12.0	$ 18.2	$ 15.8	$ 22.3	$ 68.3
(1) To remove net gains or losses from divestitures.
(2) To eliminate severance charges, acquisition related integration costs and earnout related compensation charges.
(3) To eliminate lease termination and abandonment charges, acquisition related integration costs and costs related to divestitures.
(4) To remove the impacts of acquisition valuation true-ups, impairment charges and intangible asset amortizaton
(5) To remove adjustments to the estimated acquisition earnout payables.
(6) The Q1 2020 impairment charge and adjustment to earnout payable has also been removed to improve comparability for modelling purposes only.
(7) To adjust Q1 to Q3 2019 quarters for the change in the U.S. effective income tax rate that occurred in Q4 2019.
See information regarding Non-GAAP Financial Measures on Page 1 of these exhibits.
Page 9
Arthur J. Gallagher & Co.
Non-GAAP Brokerage and Risk Management Segments Statement of Earnings - As Adjusted - Sequential
Quarterly Trend - 2017 to 2021
(Unaudited - in millions except share and per share data)
BROKERAGE AND RISK MANAGEMENT SEGMENTS COMBINED	2017 Adjusted	2018 Adjusted	2019 Adjusted	2020 Adjusted	2021 Adjusted
Statement of Earnings	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY
Commissions	$ 760.7	$ 618.2	$ 637.9	$ 624.2	$ 2,641.0	$ 839.4	$ 688.0	$ 707.6	$ 685.7	$ 2,920.7	$ 940.4	$ 777.7	$ 809.9	$ 792.6	$ 3,320.6	$ 1,017.2	$ 827.5	$ 889.9	$ 857.3	$ 3,591.9	$ 1,125.4	$ 977.1	$ 1,016.2	$ 1,013.6	$ 4,132.3
Fees	405.0	386.9	416.2	383.8	1,591.9	448.1	422.2	452.7	433.3	1,756.3	464.7	464.7	490.1	491.6	1,911.1	507.3	459.7	495.8	495.1	1,957.9	553.8	540.9	601.7	567.7	2,264.1
Supplemental revenues	47.3	35.8	36.9	38.0	158.0	52.0	48.1	43.9	45.9	189.9	56.7	46.9	49.8	57.1	210.5	59.0	50.3	54.7	57.9	221.9	66.8	55.2	61.0	65.7	248.7
Contingent revenues	35.0	21.3	21.8	21.4	99.5	34.9	21.8	25.7	15.6	98.0	48.0	29.5	30.4	27.7	135.6	45.1	37.4	34.5	30.0	147.0	63.3	43.3	43.7	37.7	188.0
Investment income and realized book gains	12.3	14.4	15.9	16.1	58.7	13.4	15.8	18.0	22.9	70.1	18.3	19.6	24.0	25.0	86.9	18.6	16.0	19.0	22.3	75.9	17.1	18.1	20.8	27.1	83.1
Revenues before reimbursements	1,260.3	1,076.6	1,128.7	1,083.5	4,549.1	1,387.8	1,195.9	1,247.9	1,203.4	5,035.0	1,528.1	1,338.4	1,404.2	1,394.0	5,664.7	1,647.2	1,390.9	1,493.9	1,462.6	5,994.6	1,826.4	1,634.6	1,743.4	1,711.8	6,916.2
Reimbursements	33.1	35.2	33.8	33.9	136.0	34.8	35.4	37.3	34.1	141.6	33.1	33.0	34.7	37.8	138.6	37.7	32.4	41.6	40.0	151.7	32.4	36.7	32.6	31.3	133.0
Total revenues	1,293.4	1,111.8	1,162.5	1,117.4	4,685.1	1,422.6	1,231.3	1,285.2	1,237.5	5,176.6	1,561.2	1,371.4	1,438.9	1,431.8	5,803.3	1,684.9	1,423.3	1,535.5	1,502.6	6,146.3	1,858.8	1,671.3	1,776.0	1,743.1	7,049.2
Compensation	669.7	635.3	657.5	657.7	2,620.2	737.7	696.1	722.6	727.1	2,883.5	796.8	768.6	804.7	821.2	3,191.3	869.4	772.4	837.0	843.9	3,322.7	941.2	904.6	963.5	955.2	3,764.5
Operating	185.7	189.7	190.9	196.6	762.9	202.8	209.7	212.1	215.8	840.4	224.9	235.2	237.2	251.5	948.8	247.0	193.7	186.0	204.3	831.0	215.0	224.2	239.2	270.7	949.1
Reimbursements	33.1	35.2	33.8	33.9	136.0	34.8	35.4	37.3	34.1	141.6	33.1	33.0	34.7	37.8	138.6	37.7	32.4	41.6	40.0	151.7	32.4	36.7	32.6	31.3	133.0
Depreciation	22.3	24.1	22.6	23.9	92.9	23.6	23.8	26.3	25.9	99.6	27.0	28.3	28.1	29.4	112.8	29.9	30.1	30.2	32.7	122.9	31.8	32.7	32.6	33.8	130.9
Amortization	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Change in estimated acquisition earnout payables	5.1	5.2	4.9	5.0	20.2	5.1	4.9	4.5	4.3	18.8	5.6	5.8	7.1	8.5	27.0	10.7	7.7	5.9	8.3	32.6	9.0	9.2	8.2	9.3	35.7
Expenses	915.9	889.5	909.7	917.1	3,632.2	1,004.0	969.9	1,002.8	1,007.2	3,983.9	1,087.4	1,070.9	1,111.8	1,148.4	4,418.5	1,194.7	1,036.3	1,100.7	1,129.2	4,460.9	1,229.4	1,207.4	1,276.1	1,300.3	5,013.2
Earnings from continuing operations before income taxes	377.5	222.3	252.8	200.3	1,052.9	418.6	261.4	282.4	230.3	1,192.7	473.8	300.5	327.1	283.4	1,384.8	490.2	387.0	434.8	373.4	1,685.4	629.4	463.9	499.9	442.8	2,036.0
Provision for income taxes	131.7	76.1	86.5	70.1	364.4	104.8	66.2	71.1	57.2	299.3	115.4	72.5	77.5	68.6	334.0	118.4	90.9	107.7	87.5	404.5	151.1	111.7	119.6	107.2	489.6
Earnings from continuing operations	245.8	146.2	166.3	130.2	688.5	313.8	195.2	211.3	173.1	893.4	358.4	228.0	249.6	214.8	1,050.8	371.8	296.1	327.1	285.9	1,280.9	478.3	352.2	380.3	335.6	1,546.4
Earnings (loss) from continuing operations
attributable to noncontrolling interests	6.4	1.9	(0.6)	(0.1)	7.6	5.0	2.1	1.6	2.0	10.7	9.8	5.1	3.4	(1.1)	17.2	0.7	1.5	0.9	1.8	4.9	1.8	2.6	1.2	2.8	8.4
Earnings from continuing operations
attributable to controlling interests	$ 239.4	$ 144.3	$ 166.9	$ 130.3	$ 680.9	$ 308.8	$ 193.1	$ 209.7	$ 171.1	$ 882.7	$ 348.6	$ 222.9	$ 246.2	$ 215.9	$ 1,033.6	$ 371.1	$ 294.6	$ 326.2	$ 284.1	$ 1,276.0	$ 476.5	$ 349.6	$ 379.1	$ 332.8	$ 1,538.0
Diluted earnings from continuing operations per share	$ 1.33	$ 0.79	$ 0.92	$ 0.72	$ 3.74	$ 1.67	$ 1.05	$ 1.13	$ 0.91	$ 4.74	$ 1.85	$ 1.18	$ 1.30	$ 1.13	$ 5.43	$ 1.92	$ 1.52	$ 1.66	$ 1.44	$ 6.54	$ 2.39	$ 1.70	$ 1.79	$ 1.57	$ 7.42
Change in diluted earnings from continuing ops per share	25%	33%	23%	27%	27%	11%	12%	15%	24%	15%	4%	29%	28%	28%	20%	24%	12%	8%	8%	13%
Change in revenues (before reimbursements)	10%	11%	11%	11%	11%	10%	12%	13%	16%	13%	8%	4%	6%	5%	6%	11%	18%	17%	17%	15%
Organic change in commissions and fees (before reimbursements)	3%	3%	5%	6%	4%	5%	6%	6%	6%	6%	5%	6%	6%	5%	5%	4%	-1%	2%	3%	2%	4%	9%	10%	11%	8%
Compensation expense ratio (before reimbursements)	53%	59%	58%	61%	58%	53%	58%	58%	60%	57%	52%	57%	57%	59%	56%	53%	56%	56%	58%	55%	52%	55%	55%	56%	54%
Operating expense ratio (before reimbursements)	15%	18%	17%	18%	17%	15%	18%	17%	18%	17%	15%	18%	17%	18%	17%	15%	14%	12%	14%	14%	12%	14%	14%	16%	14%
Effective tax rate	35%	34%	34%	35%	35%	25%	25%	25%	25%	25%	24%	24%	24%	24%	24%	24%	23%	25%	23%	24%	24%	24%	24%	24%	24%
Other Information
Diluted weighted average shares outstanding (000s)	180,591	181,609	182,517	183,575	182,115	184,953	185,491	186,766	187,513	186,164	188,362	189,768	190,674	191,755	190,145	193,239	194,050	196,345	197,420	195,048	199,076	205,826	211,498	212,864	207,346
Common shares issued for acquisitions and earnouts (000s)	259	252	257	273	1,041	93	213	527	48	881	464	132	100	1,212	1,908	694	1,213	373	730	3,010	576	92	242	821	1,731
Number of acquisitions closed	12	11	7	9	39	7	12	10	19	48	11	13	14	11	49	8	4	5	10	27	6	8	5	19	38
Annualized revenues acquired (in millions)	$ 62.5	$ 42.5	$ 38.0	$ 29.3	$ 172.3	$ 29.9	$ 145.2	$ 74.7	$ 90.0	$ 339.8	$ 71.2	$ 194.5	$ 85.1	$ 117.4	$ 468.2	$ 124.2	$ 13.9	$ 13.1	$ 100.2	$ 251.4	$ 103.7	$ 70.1	$ 16.1	$ 812.1	$ 1,002.0
Headcount	24,586	25,206	25,464	25,921	26,410	28,005	28,508	29,203	29,565	30,394	31,338	31,964	32,686	31,489	30,692	31,095	32,321	33,406	33,985	37,177
EBITDAC
Earnings from continuing operations	$ 245.8	$ 146.2	$ 166.3	$ 130.2	$ 688.5	$ 313.8	$ 195.2	$ 211.3	$ 173.1	$ 893.4	$ 358.4	$ 228.0	$ 249.6	$ 214.8	$ 1,050.8	$ 371.8	$ 296.1	$ 327.1	$ 285.9	$ 1,280.9	$ 478.3	$ 352.2	$ 380.3	$ 335.6	$ 1,546.4
Provision for income taxes	131.7	76.1	86.5	70.1	364.4	104.8	66.2	71.1	57.2	299.3	115.4	72.5	77.5	68.6	334.0	118.4	90.9	107.7	87.5	404.5	151.1	111.7	119.6	107.2	489.6
Depreciation	22.3	24.1	22.6	23.9	92.9	23.6	23.8	26.3	25.9	99.6	27.0	28.3	28.1	29.4	112.8	29.9	30.1	30.2	32.7	122.9	31.8	32.7	32.6	33.8	130.9
Amortization	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Change in estimated acquisition earnout payables	5.1	5.2	4.9	5.0	20.2	5.1	4.9	4.5	4.3	18.8	5.6	5.8	7.1	8.5	27.0	10.7	7.7	5.9	8.3	32.6	9.0	9.2	8.2	9.3	35.7
EBITDAC	$ 404.9	$ 251.6	$ 280.3	$ 229.2	$ 1,166.0	$ 447.3	$ 290.1	$ 313.2	$ 260.5	$ 1,311.1	$ 506.4	$ 334.6	$ 362.3	$ 321.3	$ 1,524.6	$ 530.8	$ 424.8	$ 470.9	$ 414.4	$ 1,840.9	$ 670.2	$ 505.8	$ 540.7	$ 485.9	$ 2,202.6
EBITDAC margin (before reimbursements)	32%	23%	25%	21%	26%	32%	24%	25%	22%	26%	33%	25%	26%	23%	27%	32%	31%	32%	28%	31%	37%	31%	31%	28%	32%
EBITDAC growth (decline)	10%	15%	12%	14%	12%	13%	15%	16%	23%	16%	5%	27%	30%	29%	21%	26%	19%	15%	17%	20%
Note: This page is the result of adding the Adjustments on Page 9 to Reported on Page 8.
See information regarding Non-GAAP Financial Measures on Page 1 of these exhibits.
Page 10

Corp Summary Operating Results

Arthur J. Gallagher & Co.
Corporate Segment - Summary Operating Results
Reconciliation of Reported and Previous Adjusted
Quarterly Trend - 2017 to 2021
(Unaudited - in millions)
2017	2018	2019	2020	2021
Net Earnings	Net Earnings	Net Earnings	Net Earnings	Net Earnings
Income	(Loss)	Income	(Loss)	Income	(Loss)	Income	(Loss)	Income	(Loss)
Pretax	Tax	Attributable to	Pretax	Tax	Attributable to	Pretax	Tax	Attributable to	Pretax	Tax	Attributable to	Pretax	Tax	Attributable to
Earnings	Benefit	Controlling	Earnings	Benefit	Controlling	Earnings	Benefit	Controlling	Earnings	Benefit	Controlling	Earnings	Benefit	Controlling
(Loss)	(Provision)	Interests	(Loss)	(Provision)	Interests	(Loss)	(Provision)	Interests	(Loss)	(Provision)	Interests	(Loss)	(Provision)	Interests
1st Quarter
Interest and banking costs	$ (30.7)	$ 12.3	$ (18.4)	$ (32.5)	$ 8.5	$ (24.0)	$ (41.1)	$ 10.7	$ (30.4)	$ (51.8)	$ 13.0	$ (38.8)	$ (49.2)	$ 12.3	$ (36.9)
Clean-energy related (1)	(51.1)	114.2	63.1	(56.9)	109.4	52.5	(53.5)	115.0	61.5	(23.9)	76.4	52.5	(29.0)	62.4	33.4
Acquisition costs	(2.7)	0.7	(2.0)	(2.0)	0.3	(1.7)	(3.9)	0.6	(3.3)	(2.7)	0.2	(2.5)	(1.5)	0.1	(1.4)
Corporate (including Impact of U.S. tax reform) (2)	(11.8)	17.7	5.9	(14.1)	10.9	(3.2)	(21.9)	12.3	(9.6)	(10.4)	15.7	5.3	(26.1)	32.5	6.4
Impact from litigation settlement (3)	(5.5)	1.1	(4.4)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Home office lease termination/move (4)	(4.0)	1.6	(2.4)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Reported 1st quarter	(105.8)	147.6	41.8	(105.5)	129.1	23.6	(120.4)	138.6	18.2	(88.8)	105.3	16.5	(105.8)	107.3	1.5
Adjustments
Corporate (including Impact of U.S. tax reform) (2)	-0	-0	-0	-0	-0	-0	-0	(1.0)	(1.0)	-0	-0	-0	-0	-0	-0
Impact from litigation settlement (3)	5.5	(1.1)	4.4	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Home office lease termination/move (4)	4.0	(1.6)	2.4	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Components, as adjusted
Interest and banking costs	(30.7)	12.3	(18.4)	(32.5)	8.5	(24.0)	(41.1)	10.7	(30.4)	(51.8)	13.0	(38.8)	(49.2)	12.3	(36.9)
Clean-energy related (1)	(51.1)	114.2	63.1	(56.9)	109.4	52.5	(53.5)	115.0	61.5	(23.9)	76.4	52.5	(29.0)	62.4	33.4
Acquisition costs	(2.7)	0.7	(2.0)	(2.0)	0.3	(1.7)	(3.9)	0.6	(3.3)	(2.7)	0.2	(2.5)	(1.5)	0.1	(1.4)
Corporate (including impact of U.S. tax reform) (2)	(11.8)	17.7	5.9	(14.1)	10.9	(3.2)	(21.9)	11.3	(10.6)	(10.4)	15.7	5.3	(26.1)	32.5	6.4
Impact from litigation settlement (3)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Home office lease termination/move (4)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Adjusted 1st quarter	$ (96.3)	$ 144.9	$ 48.6	$ (105.5)	$ 129.1	$ 23.6	$ (120.4)	$ 137.6	$ 17.2	$ (88.8)	$ 105.3	$ 16.5	$ (105.8)	$ 107.3	$ 1.5
2nd Quarter
Interest and banking costs	$ (32.4)	$ 13.0	$ (19.4)	$ (34.4)	$ 8.9	$ (25.5)	$ (46.0)	$ 12.0	$ (34.0)	$ (51.5)	$ 12.9	$ (38.6)	$ (57.2)	$ 14.3	$ (42.9)
Clean-energy related (1)	(38.5)	49.4	10.9	(44.8)	59.2	14.4	(36.6)	44.8	8.2	(22.9)	27.9	5.0	(27.9)	48.7	20.8
Acquisition costs (7)	(2.4)	0.6	(1.8)	(3.0)	0.4	(2.6)	(7.8)	1.3	(6.5)	(1.4)	0.2	(1.2)	(11.8)	1.6	(10.2)
Corporate (including impact of U.S. tax reform) (2) (8)	(16.1)	9.1	(7.0)	(15.5)	1.1	(14.4)	(13.6)	7.6	(6.0)	(20.1)	10.0	(10.1)	(22.9)	(4.5)	(27.4)
Impact from litigation settlement (3)	(5.6)	1.2	(4.4)	-0	-0	-0	-0	-0	-0	-0	-0	-0
Home office lease termination/move (4)	(3.0)	1.2	(1.8)	-0	-0	-0	-0	-0	-0	-0	-0	-0
Reported 2nd quarter	(98.0)	74.5	(23.5)	(97.7)	69.6	(28.1)	(104.0)	65.7	(38.3)	(95.9)	51.0	(44.9)	(119.8)	60.1	(59.7)
Adjustments
Transaction-related costs (7)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	10.2	(1.5)	8.7
U.K.-related tax rate change (8)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	19.3	19.3
Corporate (including Impact of U.S. tax reform) (2)	-0	-0	-0	-0	-0	-0	-0	(1.0)	(1.0)	-0	-0	-0	-0	-0	-0
Impact from litigation settlement (3)	5.6	(1.2)	4.4	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Home office lease termination/move (4)	3.0	(1.2)	1.8	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Components, as adjusted
Interest and banking costs	(32.4)	13.0	(19.4)	(34.4)	8.9	(25.5)	(46.0)	12.0	(34.0)	(51.5)	12.9	(38.6)	(57.2)	14.3	(42.9)
Clean-energy related (1)	(38.5)	49.4	10.9	(44.8)	59.2	14.4	(36.6)	44.8	8.2	(22.9)	27.9	5.0	(27.9)	48.7	20.8
Acquisition costs	(2.4)	0.6	(1.8)	(3.0)	0.4	(2.6)	(7.8)	1.3	(6.5)	(1.4)	0.2	(1.2)	(1.6)	0.1	(1.5)
Corporate (including impact of U.S. tax reform) (2)	(16.1)	9.1	(7.0)	(15.5)	1.1	(14.4)	(13.6)	6.6	(7.0)	(20.1)	10.0	(10.1)	(22.9)	14.8	(8.1)
Impact from litigation settlement (3)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Home office lease termination/move (4)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Adjusted 2nd quarter	$ (89.4)	$ 72.1	$ (17.3)	$ (97.7)	$ 69.6	$ (28.1)	$ (104.0)	$ 64.7	$ (39.3)	$ (95.9)	$ 51.0	$ (44.9)	$ (109.6)	$ 77.9	$ (31.7)
3rd Quarter
Interest and banking costs (7)	$ (31.9)	$ 12.8	$ (19.1)	$ (37.6)	$ 9.8	$ (27.8)	$ (47.8)	$ 12.4	$ (35.4)	$ (49.2)	$ 12.3	$ (36.9)	$ (77.3)	$ 19.3	$ (58.0)
Clean-energy related (1) (6)	(36.0)	70.0	34.0	(46.1)	75.8	29.7	(42.0)	50.6	8.6	(35.1)	39.5	4.4	(37.8)	68.6	30.8
Acquisition costs (7)	(2.3)	0.9	(1.4)	(2.5)	0.1	(2.4)	(3.5)	0.4	(3.1)	(2.1)	0.2	(1.9)	(13.0)	2.5	(10.5)
Corporate (including impact of U.S. tax reform) (2)	(22.1)	12.4	(9.7)	(18.2)	9.2	(9.0)	(21.1)	13.2	(7.9)	(16.1)	2.5	(13.6)	(16.8)	5.2	(11.6)
Impact from litigation settlement (3)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Home office lease termination/move (4)	(6.2)	2.5	(3.7)	-0	-0	-0	-0	-0	-0	-0	-0	-0
Reported 3rd quarter	(98.5)	98.6	0.1	(104.4)	94.9	(9.5)	(114.4)	76.6	(37.8)	(102.5)	54.5	(48.0)	(144.9)	95.6	(49.3)
Adjustments
Loss on extinguishment of debt (7)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	16.2	(4.0)	12.2
Transaction-related costs (7)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	11.0	(2.8)	8.2
Clean energy related adjustments (6)	-0	-0	-0	-0	-0	-0	12.4	(3.2)	9.2	-0	-0	-0	-0	-0	-0
Corporate (including Impact of U.S. tax reform) (2)	-0	-0	-0	-0	-0	-0	-0	(1.1)	(1.1)	-0	5.5	5.5	-0	4.9	4.9
Home office lease termination/move (4)	6.2	(2.5)	3.7	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Components, as adjusted
Interest and banking costs	(31.9)	12.8	(19.1)	(37.6)	9.8	(27.8)	(47.8)	12.4	(35.4)	(49.2)	12.3	(36.9)	(61.1)	15.3	(45.8)
Clean-energy related (1)	(36.0)	70.0	34.0	(46.1)	75.8	29.7	(29.6)	47.4	17.8	(35.1)	39.5	4.4	(37.8)	68.6	30.8
Acquisition costs	(2.3)	0.9	(1.4)	(2.5)	0.1	(2.4)	(3.5)	0.4	(3.1)	(2.1)	0.2	(1.9)	(2.0)	(0.3)	(2.3)
Corporate (including impact of U.S. tax reform) (2)	(22.1)	12.4	(9.7)	(18.2)	9.2	(9.0)	(21.1)	12.1	(9.0)	(16.1)	8.0	(8.1)	(16.8)	10.1	(6.7)
Home office lease termination/move (4)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
-0	-0	-0	-0	-0	-0	-0	-0	-0
Adjusted 3rd quarter	$ (92.3)	$ 96.1	$ 3.8	$ (104.4)	$ 94.9	$ (9.5)	$ (102.0)	$ 72.3	$ (29.7)	$ (102.5)	$ 60.0	$ (42.5)	$ (117.7)	$ 93.7	$ (24.0)
4th Quarter
Interest and banking costs	$ (31.8)	$ 12.7	$ (19.1)	$ (37.4)	$ 9.7	$ (27.7)	$ (49.1)	$ 12.3	$ (36.8)	$ (48.9)	$ 12.2	$ (36.7)	$ (62.2)	$ 15.5	$ (46.7)
Clean-energy related (1)	(35.7)	60.4	24.7	(40.3)	62.3	22.0	(19.8)	30.0	10.2	(30.5)	38.4	7.9	(40.7)	53.1	12.4
Acquisition costs (7)	(3.8)	0.7	(3.1)	(6.4)	0.7	(5.7)	(6.0)	0.9	(5.1)	(3.7)	0.4	(3.3)	(28.6)	5.3	(23.3)
Corporate (including Impact of U.S. tax reform) (2)	(20.6)	18.2	(2.4)	(20.5)	46.5	26.0	(24.9)	17.0	(7.9)	(24.9)	24.2	(0.7)	(28.3)	2.5	(25.8)
Impact from litigation settlement (3)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Home office lease termination/move (4)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Reported 4th quarter	(91.9)	92.0	0.1	(104.6)	119.2	14.6	(99.8)	60.2	(39.6)	(108.0)	75.2	(32.8)	(159.8)	76.4	(83.4)
Adjustments
Transaction-related costs (7)	20.6	(18.2)	2.4	-0	-0	-0	-0	-0	-0	-0	-0	-0	26.7	(5.1)	21.6
Corporate (including legal and income tax related) (2) (8)	2.5	(4.0)	(1.5)	-0	(8.9)	(8.9)	3.0	2.4	5.4	-0	(6.6)	(6.6)	9.5	9.9	19.4
Corporate legal entity restructuring (5)	-0	-0	-0	-0	(22.0)	(22.0)	-0	-0	-0	-0	-0	-0	-0	-0	-0
Impact from litigation settlement (3)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Home office lease termination/move (4)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Components, as adjusted
Interest and banking costs	$ (31.8)	$ 12.7	$ (19.1)	$ (37.4)	$ 9.7	$ (27.7)	$ (49.1)	$ 12.3	$ (36.8)	$ (48.9)	$ 12.2	$ (36.7)	$ (62.2)	$ 15.5	$ (46.7)
Clean-energy related (1)	(35.7)	60.4	24.7	(40.3)	62.3	22.0	(19.8)	30.0	10.2	(30.5)	38.4	7.9	(40.7)	53.1	12.4
Acquisition costs	(3.8)	0.7	(3.1)	(6.4)	0.7	(5.7)	(6.0)	0.9	(5.1)	(3.7)	0.4	(3.3)	(1.9)	0.2	(1.7)
Corporate (including impact of U.S. tax reform) (2)	(18.1)	14.2	(3.9)	(20.5)	15.6	(4.9)	(21.9)	19.4	(2.5)	(24.9)	17.6	(7.3)	(18.8)	12.4	(6.4)
Adjusted 4th quarter	$ (89.4)	$ 88.0	$ (1.4)	$ (104.6)	$ 88.3	$ (16.3)	$ (96.8)	$ 62.6	$ (34.2)	$ (108.0)	$ 68.6	$ (39.4)	$ (123.6)	$ 81.2	$ (42.4)
Full Year/YTD
Interest and banking costs (7)	$ (126.8)	$ 50.8	$ (76.0)	$ (141.9)	$ 36.9	$ (105.0)	$ (184.0)	$ 47.4	$ (136.6)	$ (201.4)	$ 50.4	$ (151.0)	$ (245.9)	$ 61.4	$ (184.5)
Clean-energy related (1) (6)	(161.3)	294.0	132.7	(188.1)	306.7	118.6	(151.9)	240.4	88.5	(112.4)	182.2	69.8	(135.4)	232.8	97.4
Acquisition costs (7)	(11.2)	2.9	(8.3)	(13.9)	1.5	(12.4)	(21.2)	3.2	(18.0)	(9.9)	1.0	(8.9)	(54.9)	9.5	(45.4)
Corporate (including legal and income tax related) (2) (8)	(70.6)	57.4	(13.2)	(68.3)	67.7	(0.6)	(81.5)	50.1	(31.4)	(71.5)	52.4	(19.1)	(94.1)	35.7	(58.4)
Impact from litigation settlement (3)	(11.1)	2.3	(8.8)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Home office lease termination/move (4)	(13.2)	5.3	(7.9)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Reported Full Year	(394.2)	412.7	18.5	(412.2)	412.8	0.6	(438.6)	341.1	(97.5)	(395.2)	286.0	(109.2)	(530.3)	339.4	(190.9)
Adjustments
Loss on extinguishment of debt (7)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	16.2	(4.0)	12.2
Transaction-related costs (7)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	47.9	(9.4)	38.5
U.K.-related tax rate change (8)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	19.3	19.3
Clean energy related adjustments (6)	-0	-0	-0	-0	-0	-0	12.4	(3.2)	9.2	-0	-0	-0	-0	-0	-0
Corporate (including legal and income tax related) (2) (8)	2.5	(4.0)	(1.5)	-0	(8.9)	(8.9)	3.0	(0.7)	2.3	-0	(1.1)	(1.1)	9.5	14.8	24.3
Corporate legal entity restructuring (5)	-0	-0	-0	-0	(22.0)	(22.0)	-0	-0	-0	-0	-0	-0	-0	-0	-0
Impact from litigation settlement (3)	11.1	(2.3)	8.8	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Home office lease termination/move (4)	13.2	(5.3)	7.9	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Components, as adjusted
Interest and banking costs	$ (126.8)	$ 50.8	$ (76.0)	$ (141.9)	$ 36.9	$ (105.0)	$ (184.0)	$ 47.4	$ (136.6)	$ (201.4)	$ 50.4	$ (151.0)	$ (229.7)	$ 57.4	$ (172.3)
Clean-energy related (1)	(161.3)	294.0	132.7	(188.1)	306.7	118.6	(139.5)	237.2	97.7	(112.4)	182.2	69.8	(135.4)	232.8	97.4
Acquisition costs	(11.2)	2.9	(8.3)	(13.9)	1.5	(12.4)	(21.2)	3.2	(18.0)	(9.9)	1.0	(8.9)	(7.0)	0.1	(6.9)
Corporate (including legal and income tax related) (2)	(68.1)	53.4	(14.7)	(68.3)	36.8	(31.5)	(78.5)	49.4	(29.1)	(71.5)	51.3	(20.2)	(84.6)	69.8	(14.8)
Impact from litigation settlement (3)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Home office lease termination/move (4)	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Adjusted Full Year	$ (367.4)	$ 401.1	$ 33.7	$ (412.2)	$ 381.9	$ (30.3)	$ (423.2)	$ 337.2	$ (86.0)	$ (395.2)	$ 284.9	$ (110.3)	$ (456.7)	$ 360.1	$ (96.6)
(1)	Pretax earnings are presented net of amounts attributable to noncontrolling interests.
(2)	Consists of the book tax expense from (a) adjusting December 31, 2017 initial estimates from the U.S. tax legislation passed in the fourth quarter of 2017, which among other changes lowered the U.S. corporate tax rate from 35% to 21% effective January 1, 2018 and (b) the on-going impact of such legislation - principally the partial taxation of foreign earnings, nondeductible executive compensation and entertainment expenses. In fourth quarter 2018, the Internal Revenue Service issued clarifying guidance related to the new tax legislation which resulted in Gallagher recognizing a tax benefit of $8.9 million in the quarter. In 2019, it consists of adjustments in Q1 to Q3 2019 quarters for the change in the effective income tax rate that occurred in Q4 2019. In Q3 2020, it consists of one-time taxes associated with realignment of our operations to continue to conduct certain business in the European Union after Brexit. In third quarter 2021, Gallagher incurred additional U.K. income tax expense related to the non-deductibility of some acquisition related adjustments made in the quarter.
(3)	During the third quarter of 2015, Gallagher settled litigation against certain former U.K. executives and their advisors for a pretax gain of $31.0 million ($22.3 million net of costs and taxes). Incremental expense that arose in connection with this matter resulted in changes through June 30, 2017.
(4)	Consists of move-related and lease abandonment costs associated with relocating Gallagher's corporate headquarters to a nearby suburb of Chicago.
(5)	Consists of the tax benefit related to the release of valuation allowances that resulted from moving a legal entity within Gallagher's subsidiary structure.
(6)	Clean Energy Related Adjustments - During third quarter of 2019, Gallagher and/or our 46.5% owned affiliate, Chem-Mod LLC, incurred costs related to (a) settling certain patent infringement litigation, (b) prevailing in a tax court matter, (c) defending a new patent matter, and (d) moving three 2011 Era plants into different locations that could generate more after-tax earnings in 2020 than in 2019.
(7)	In second and third quarters of 2021, Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees associated with due diligence and integration for its (a) acquisition of the Willis Towers Watson treaty reinsurance brokerage operations and (b) the previous terminated agreement to acquire certain Willis Towers Watson reinsurance and other brokerage operations. The acquisition of the Willis Towers Watson treaty reinsurance brokerage operations closed in the fourth quarter of 2021. In connection with (b), in third quarter 2021, Gallagher redeemed $650 million of 2031 Senior Notes and incurred a loss on early extinguishment of this debt of $16.2 million.
(8)	In fourth quarter 2021, Gallagher incurred (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. In second quarter 2021, the U.K. government enacted tax legislation that increases the corporate income tax rate from 19% to 25% effective in 2023, in which Gallagher incurred additional income tax expense during 2021 to adjust certain deferred income tax liabilities to the higher income tax rate.
Page 10

Notes to Supplemental

Arthur J. Gallagher & Co.
Notes to Supplemental Quarterly Financial Information
4th Quarter ended December 31, 2021
Notes to Supplemental Quarterly Financial Information
The quarterly GAAP accounting for Gallagher's tax advantaged clean energy investments is complex, but generally requires: (a) operating expenses associated with producing clean-coal to be recognized in
the period of production; (b) tax benefits relating to (a) to be recognized in the period of production; but (c) associated tax credits to be recognized as a component of the tax provision based on the
proportion of that quarter's consolidated reported pretax earnings to expected total consolidated reported annual pretax earnings, with certain modifications and without anticipation of future acquisitions.
(1)	The accounting for Gallagher's tax advantaged clean energy investments reflects a considerable amount of estimation, including tax credits to be produced for the full year, annual GAAP earnings and the seasonal
spread of GAAP earnings between each quarter. After adopting the new revenue recognition standard, ASC 606, Gallagher's reported first quarter earnings from its core operations is
higher than in the remaining three quarters of the year. This can result in a substantial number of tax credits being recognized in the first quarter for GAAP purposes, even before the tax credits being recognized
have been produced. The following table shows credits produced compared to tax credits recognized for the first, second, third and fourth quarters of 2021, 2020, 2019, 2018 and 2017.
Credits recognized in 2017 are shown as restated for the adoption of ASC 606.
Actual
2017	Actual	Actual	Actual	Actual
As Restated for Adoption of ASC 606	2018	2019	2020	2021
Credits	Credits	Credits	Credits	Credits	Credits	Credits	Credits	Credits	Credits
(in millions)	Produced	Recognized	Produced	Recognized	Produced	Recognized	Produced	Recognized	Produced	Recognized
1st Quarter	$ 51.0	$ 93.9	$ 62.1	$ 94.6	$ 55.2	$ 101.1	$ 31.2	$ 70.4	$ 52.6	$ 55.2
2nd Quarter	56.6	34.1	61.8	47.6	40.9	35.2	27.7	22.3	49.2	41.8
3rd Quarter	66.7	55.6	72.8	63.8	63.1	39.7	55.8	30.7	68.4	59.1
4th Quarter	55.4	46.1	61.1	51.8	41.8	25.0	39.6	30.9	28.8	42.9
Full Year	$ 229.7	$ 229.7	$ 257.8	$ 257.8	$ 201.0	$ 201.0	$ 154.3	$ 154.3	$ 199.0	$ 199.0
(2)	Acquisition Rollover Total Revenues - Brokerage Segment
Actual	Actual	Actual	Actual
(in millions)	1st Quarter 2021	2nd Quarter 2021	3rd Quarter 2021	4th Quarter 2021
1st Quarter 2020 Acquisition Activity	$ 2.5	NA	NA	NA
2nd Quarter 2020 Acquisition Activity	4.0	2.8	NA	NA
3rd Quarter 2020 Acquisition Activity	2.6	3.9	2.5	NA
4th Quarter 2020 Acquisition Activity	24.8	23.2	36.1	13.9
1st Quarter 2021 Acquisition Activity	18.3	24.6	25.3	17.6
2nd Quarter 2021 Acquisition Activity	NA	5.0	7.0	10.1
3rd Quarter 2021 Acquisition Activity	NA	NA	1.9	4.0
4th Quarter 2021 Acquisition Activity	NA	NA	NA	32.2
Less: Divestitures	(3.1)	(4.3)	(3.2)	(3.1)
Total - Acquisitions and Divestitures	$ 49.1	$ 55.2	$ 69.6	$ 74.7
(3)	The table below provides actual information related to share issuances in the first, second, third and fourth quarters of 2021 (in millions).
Diluted Weighted Average
Actual Shares	Outstanding Shares *
Issued or	1st Q 2021 to	Full Year
Outstanding	4th Q 2021	2021
Actual at December 31, 2020	193.7	197.4	195.0
Actual 1st Quarter 2021 Activity
Impact on 1st Quarter 2021 weighted average shares for shares issued prior to December 31, 2020	-0	1.1	3.4
Shares issued in 1st Quarter 2021 related to acquisitions and earnouts	0.6	0.3	0.5
Shares issued in 1st Quarter 2021 related to employee stock-based plans	1.6	0.3	1.1
Actual at March 31, 2021	195.9	199.1
Actual 2nd Quarter 2021 Activity
Impact on 2nd Quarter 2021 weighted average shares for shares issued prior to March 31, 2021	-0	1.2	-0
Shares issued in 2nd Quarter 2021 related to follow-on public offering	**	10.3	5.1	6.5
Shares issued in 2nd Quarter 2021 related to acquisitions and earnouts	0.1	-0	-0
Shares issued in 2nd Quarter 2021 related to employee stock-based plans	0.5	0.4	0.3
Actual at June 30, 2021	206.8	205.8
`
Actual 3rd Quarter 2021 Activity
Impact on 3rd Quarter 2021 weighted average shares for shares issued prior to June 30, 2021	-0	5.4	-0
Shares issued in 3rd Quarter 2021 related to acquisitions and earnouts	0.2	0.1	0.1
Shares issued in 3rd Quarter 2021 related to employee stock-based plans	0.3	0.2	0.1
Actual at September 30, 2021	207.3	211.5
Actual 4th Quarter 2021 Activity
Impact on 4th Quarter 2021 weighted average shares for shares issued prior to September 30, 2021	-0	0.4	0.1
Shares issued in 4th Quarter 2021 related to acquisitions and earnouts	0.8	0.3	0.1
Shares issued in 4th Quarter 2021 related to employee stock-based plans	0.4	0.7	0.1
Actual at December 31, 2021	208.5	212.9	207.3
* This is a weighted average calculation based on the actual period of time that the shares are outstanding during the quarter and year to date periods.
** Gallagher completed a follow on public offering of 10,350,000 shares of its common stock on May 17, 2021, intended to fund a portion of the pending acquisition of certain Willis Towers Watson plc reinsurance brokerage operations.
Page 13