UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 12, 2015

 

 

Willis Group Holdings Public Limited Company

(Exact name of registrant as specified in its charter)

 

 

 

Ireland		001-16503		98-0352587
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

c/o Willis Group Limited, 51 Lime Street, London, EC3M 7DQ, England and Wales

(Address, including Zip Code, of Principal Executive Offices)

Registrant’s telephone number, including area code: (44) (20) 3124 6000

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 8.01.

Other Events.

Beginning with the reporting of its second quarter 2014 financial results, Willis Group Holdings Public Limited Company (the “Company”) started providing certain financial metrics on an underlying basis. In calculating those financial metrics on an underlying basis, the prior period’s measures, other than earnings per share (“EPS”), were rebased to the current period using the average foreign currency exchange rates for each month in the period to remove the impact of foreign currency movements when comparing periods. Underlying EPS measures were treated differently. The current period underlying EPS excluded the year over year impact of foreign currency movements in order to assist comparability to EPS figures that have been disclosed in prior periods.

Starting with the reporting of fourth quarter 2014 financial results, for purposes of conforming to all other underlying financial measures, the Company will report underlying EPS on a basis similar to all other underlying measures (i.e., the prior year EPS will be rebased to current period using the average foreign currency exchange rates for each month in the period to remove the impact of foreign currency movements when comparing periods).

For illustrative purposes, Exhibit 99.1 attached hereto sets forth all quarterly reconciliations of GAAP to non-GAAP financial information from 2011 through third quarter 2014 including the restated underlying EPS figures.

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Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit Number		Description
99.1		Quarterly Reconciliations of GAAP to Non-GAAP Financial Information

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SIGNATURES

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: January 12, 2015				WILLIS GROUP HOLDINGS PUBLIC LIMITED COMPANY
				By:		/s/ John Greene
						John Greene
						Group Chief Financial Officer

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INDEX TO EXHIBITS

 

Exhibit Number		Description
99.1		Quarterly Reconciliations of GAAP to Non-GAAP Financial Information

Exhibit 99.1

We present such non-GAAP supplemental financial information, as we believe such information is of interest to the investment community because it provides additional meaningful methods of evaluating certain aspects of the Company’s operating performance from period to period on a basis that may not be otherwise apparent on a GAAP basis. This supplemental financial information should be viewed in addition to, not in lieu of, the Company’s condensed consolidated financial statements.

Reconciliation of reported to underlying net income and reported diluted earnings per share to underlying diluted earnings per share

By Quarter 2011 - 2014

 

		2011																				2012
		Q1				Q2				Q3				Q4				FY				Q1				Q2				Q3				Q4				FY
Net income (loss) attributable to Willis Group Holdings plc			35				84				60				24				203				225				107				26				(804	)			(446	)
Excluding:
Operational improvement program			—				—				—				—				—				—				—				—				—				—
Venezuela currency devaluation			—				—				—				—				—				—				—				—				—				—
2011 Operational review			69				12				11				36				128				—				—				—				—				—
Irrecoverable accounts receivable			—				—				—				13				13				8				—				—				—				8
FSA regulatory settlement			—				11				—				—				11				—				—				—				—				—
Goodwill impairment charge			—				—				—				—				—				—				—				—				458				458
Write-off of cash retention awards			—				—				—				—				—				—				—				—				138				138
Additional incentive accrual			—				—				—				—				—				—				—				—				175				175
Insurance recovery			—				—				—				—				—				—				(3	)			—				(3	)			(6	)
India JV settlement			—				—				—				—				—				—				—				11				—				11
Expense reduction initiative			—				—				—				—				—				—				—				—				—				—
Debt tender fees			—				—				—				—				—				—				—				—				—				—
(Gain) loss on disposal of operations			(4	)			—				—				—				(4	)			—				—				1				2				3
Make-whole premium/loss on extinguishment			124				—				1				6				131				—				—				—				—				—
Deferred tax valuation allowance			—				—				—				—				—				—				—				—				113				113
Foreign currency movements			(3	)			11				1				—				9				—				—				—				—				—
Underlying net income			221				118				73				79				491				233				104				38				79				454
		2011																				2012
		Q1				Q2				Q3				Q4				FY				Q1				Q2				Q3				Q4				FY
Reported diluted earnings per share			0.20				0.48				0.34				0.14				1.15				1.28				0.61				0.15				(4.65	)			(2.58	)
Excluding:
Operational improvement program			—				—				—				—				—				—				—				—				—				—
Venezuela currency devaluation			—				—				—				—				—				—				—				—				—				—
2011 Operational review			0.40				0.07				0.06				0.20				0.73				—				—				—				—				—
Irrecoverable accounts receivable			—				—				—				0.07				0.08				0.04				—				—				—				0.05
FSA regulatory settlement			—				0.06				—				—				0.06				—				—				—				—				—
Goodwill impairment charge			—				—				—				—				—				—				—				—				2.62				2.60
Write-off of cash retention awards			—				—				—				—				—				—				—				—				0.79				0.78
Additional incentive accrual			—				—				—				—				—				—				—				—				1.00				0.99
Insurance recovery			—				—				—				—				—				—				(0.02	)			—				(0.02	)			(0.03	)
India JV settlement			—				—				—				—				—				—				—				0.06				—				0.06
Expense reduction initiative			—				—				—				—				—				—				—				—				—				—
Debt tender fees			—				—				—				—				—				—				—				—				—				—
(Gain) loss on disposal of operations			(0.02	)			—				—				—				(0.02	)			—				—				0.01				0.01				0.02
Make-whole premium/loss on extinguishment			0.71				—				0.01				0.04				0.74				—				—				—				—				—
Deferred tax valuation allowance			—				—				—				—				—				—				—				—				0.64				0.64
Dilutive impact of potentially issuable shares			—				—				—				—				—				—				—				—				0.06				0.05
Foreign currency movements			(0.02	)			0.06				0.01				—				0.05				—				—				—				—				—
Underlying diluted earnings per share			1.27				0.67				0.42				0.45				2.79				1.32				0.59				0.22				0.45				2.58
Diluted share count			174				176				176				176				176				176				176				175				175				176

Underlying net income and underlying diluted EPS: Underlying net income and underlying diluted EPS for the 2011 periods has been rebased to the 2012 period exchange rates to remove the impact of foreign currency movements when comparing periods.

 

Page 1 of 3

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Reconciliation of reported to underlying net income and reported diluted earnings per share to underlying diluted earnings per share

By Quarter 2011 - 2014

 

		2012																				2013
		Q1				Q2				Q3				Q4				FY				Q1				Q2				Q3				Q4				FY
Net income (loss) attributable to Willis Group Holdings plc			225				107				26				(804	)			(446	)			219				105				(27	)			68				365
Excluding:
Operational improvement program			—				—				—				—				—				—				—				—				—				—
Venezuela currency devaluation			—				—				—				—				—				—				—				—				—				—
2011 Operational review			—				—				—				—				—				—				—				—				—				—
Irrecoverable accounts receivable			8				—				—				—				8				—				—				—				—				—
FSA regulatory settlement			—				—				—				—				—				—				—				—				—				—
Goodwill impairment charge			—				—				—				458				458				—				—				—				—				—
Write-off of cash retention awards			—				—				—				138				138				—				—				—				—				—
Additional incentive accrual			—				—				—				175				175				—				—				—				—				—
Insurance recovery			—				(3	)			—				(3	)			(6	)			—				—				—				—				—
India JV settlement			—				—				11				—				11				—				—				—				—				—
Expense reduction initiative			—				—				—				—				—				38				—				—				—				38
Debt tender fees			—				—				—				—				—				—				—				1				—				1
(Gain) loss on disposal of operations			—				—				1				2				3				—				—				—				(1	)			(1	)
Make-whole premium/loss on extinguishment			—				—				—				—				—				—				—				60				—				60
Deferred tax valuation allowance			—				—				—				113				113				—				—				—				9				9
Foreign currency movements			2				(9	)			—				3				(4	)			—				—				—				—				—
Underlying net income			235				95				38				82				450				257				105				34				76				472
		2012																				2013
		Q1				Q2				Q3				Q4				FY				Q1				Q2				Q3				Q4				FY
Reported diluted earnings per share			1.28				0.61				0.15				(4.65	)			(2.58	)			1.24				0.59				(0.15	)			0.37				2.04
Excluding:
Operational improvement program			—				—				—				—				—				—				—				—				—				—
Venezuela currency devaluation			—				—				—				—				—				—				—				—				—				—
2011 Operational review			—				—				—				—				—				—				—				—				—				—
Irrecoverable accounts receivable			0.04				—				—				—				0.05				—				—				—				—				—
FSA regulatory settlement			—				—				—				—				—				—				—				—				—				—
Goodwill impairment charge			—				—				—				2.62				2.60				—				—				—				—				—
Write-off of cash retention awards			—				—				—				0.79				0.78				—				—				—				—				—
Additional incentive accrual			—				—				—				1.00				0.99				—				—				—				—				—
Insurance recovery			—				(0.02	)			—				(0.02	)			(0.03	)			—				—				—				—				—
India JV settlement			—				—				0.06				—				0.06				—				—				—				—				—
Expense reduction initiative			—				—				—				—				—				0.22				—				—				—				0.21
Debt tender fees			—				—				—				—				—				—				—				0.01				—				0.01
(Gain) loss on disposal of operations			—				—				0.01				0.01				0.02				—				—				—				—				(0.01	)
Make-whole premium/loss on extinguishment			—				—				—				—				—				—				—				0.33				—				0.34
Deferred tax valuation allowance			—				—				—				0.64				0.64				—				—				—				0.05				0.05
Dilutive impact of potentially issuable shares			—				—				—				0.06				0.05				—				—				—				—				—
Foreign currency movements			0.01				(0.05	)			—				0.02				(0.02	)			—				—				—				—				—
Underlying diluted earnings per share			1.33				0.54				0.22				0.47				2.56				1.46				0.59				0.19				0.42				2.64
Diluted share count			176				176				175				175				176				176				178				180				182				179

Underlying net income and underlying diluted EPS: Underlying net income and underlying diluted EPS for the 2012 periods has been rebased to the 2013 period exchange rates to remove the impact of foreign currency movements when comparing periods.

 

Page 2 of 3

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Reconciliation of reported to underlying net income and reported diluted earnings per share to underlying diluted earnings per share

By Quarter 2011 - 2014

 

		2013																2014
		Q1				Q2				Q3				YTD				Q1				Q2				Q3				YTD
Net income (loss) attributable to Willis Group Holdings plc			219				105				(27	)			297				246				47				(7	)			286
Excluding:
Operational improvement program			—				—				—				—				—				2				14				16
Venezuela currency devaluation			—				—				—				—				—				13				—				13
2011 Operational review			—				—				—				—				—				—				—				—
Irrecoverable accounts receivable			—				—				—				—				—				—				—				—
FSA regulatory settlement			—				—				—				—				—				—				—				—
Goodwill impairment charge			—				—				—				—				—				—				—				—
Write-off of cash retention awards			—				—				—				—				—				—				—				—
Additional incentive accrual			—				—				—				—				—				—				—				—
Insurance recovery			—				—				—				—				—				—				—				—
India JV settlement			—				—				—				—				—				—				—				—
Expense reduction initiative			38				—				—				38				—				—				—				—
Debt tender fees			—				—				1				1				—				—				—				—
(Gain) loss on disposal of operations			—				—				—				—				2				—				—				2
Make-whole premium/loss on extinguishment			—				—				60				60				—				—				—				—
Deferred tax valuation allowance			—				—								—				—				21				—				21
Foreign currency movements			(6	)			(5	)			(18	)			(29	)			—				—				—				—
Underlying net income			251				100				16				367				248				83				7				338
		2013																2014
		Q1				Q2				Q3				YTD				Q1				Q2				Q3				YTD
Reported diluted earnings per share			1.24				0.59				(0.15	)			1.67				1.35				0.26				(0.04	)			1.57
Excluding:
Operational improvement program			—				—				—				—				—				0.01				0.08				0.09
Venezuela currency devaluation			—				—				—				—				—				0.07				—				0.07
2011 Operational review			—				—				—				—				—				—				—				—
Irrecoverable accounts receivable			—				—				—				—				—				—				—				—
FSA regulatory settlement			—				—				—				—				—				—				—				—
Goodwill impairment charge			—				—				—				—				—				—				—				—
Write-off of cash retention awards			—				—				—				—				—				—				—				—
Additional incentive accrual			—				—				—				—				—				—				—				—
Insurance recovery			—				—				—				—				—				—				—				—
India JV settlement			—				—				—				—				—				—				—				—
Expense reduction initiative			0.22				—				—				0.21				—				—				—				—
Debt tender fees			—				—				0.01				0.01				—				—				—				—
(Gain) loss on disposal of operations			—				—				—				—				0.01				—				—				0.01
Make-whole premium/loss on extinguishment			—				—				0.33				0.33				—				—				—				—
Deferred tax valuation allowance			—				—				—				—				—				0.12				—				0.12
Dilutive impact of potentially issuable shares			—				—				—				—				—				—				—				—
Foreign currency movements			(0.03	)			(0.03	)			(0.10	)			(0.16	)			—				—				—				—
Underlying diluted earnings per share			1.43				0.56				0.09				2.06				1.36				0.46				0.04				1.86
Diluted share count			176				178				177				178				182				182				178				182

Underlying net income and underlying diluted EPS: Underlying net income and underlying diluted EPS for the 2013 periods has been rebased to the 2014 period exchange rates to remove the impact of foreign currency movements when comparing periods.

 

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