Ireland | 001-16503 | 98-0352587 |
(State or other jurisdiction or incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Exhibit No. | Description | |
99.1 | Recast segment information |
Willis Towers Watson Public Limited Company | ||
By: | /s/ SUSAN D. DAVIES | |
Susan D. Davies | ||
Controller and | ||
Principal Accounting Officer | ||
• | As part of the further integration of our Willis Towers Watson businesses, we have updated our corporate expense allocations to standardize our methodologies and allocate those expenses which are directly related to the business segment operations. Those costs which will be unallocated primarily relate to corporate functions which are not directly related to the business, or to certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes. These unallocated costs are reported as Unallocated, net in the reconciliation from Total segment operating income to Income from operations before income taxes and interest in earnings of associates. |
• | Historically the depreciation of fixed assets and amortization of the internally-developed software was reflected as an expense in the segment results. The amortization for intangible assets is not reflected in our segment results and is included in Amortization as a reconciling adjustment to our overall U.S. GAAP results. |
Human Capital and Benefits | Q1 | Q2 | Q3 | Q4 | FY 2016 | |||||||||||||||||||||||||||||||||||
Reported | Recast | Reported | Recast | Reported | Recast | Reported | Recast | Reported | Recast | |||||||||||||||||||||||||||||||
Segment commissions and fees | $ | 952 | $ | 926 | $ | 760 | $ | 731 | $ | 747 | $ | 720 | $ | 751 | $ | 723 | $ | 3,210 | $ | 3,100 | ||||||||||||||||||||
Segment interest and other income | 3 | 4 | 5 | 5 | — | — | 8 | 8 | 16 | 17 | ||||||||||||||||||||||||||||||
Total segment revenues | $ | 955 | $ | 930 | $ | 765 | $ | 736 | $ | 747 | $ | 720 | $ | 759 | $ | 731 | $ | 3,226 | $ | 3,117 | ||||||||||||||||||||
Total segment operating income | $ | 297 | $ | 313 | $ | 113 | $ | 128 | $ | 121 | $ | 127 | $ | 149 | $ | 160 | $ | 680 | $ | 728 |
Corporate Risk and Broking | Q1 | Q2 | Q3 | Q4 | FY 2016 | |||||||||||||||||||||||||||||||||||
Reported | Recast | Reported | Recast | Reported | Recast | Reported | Recast | Reported | Recast | |||||||||||||||||||||||||||||||
Segment commissions and fees | $ | 638 | $ | 641 | $ | 623 | $ | 627 | $ | 546 | $ | 553 | $ | 695 | $ | 698 | $ | 2,502 | $ | 2,519 | ||||||||||||||||||||
Segment interest and other income | 7 | 6 | 6 | 6 | 8 | 8 | 8 | 8 | 29 | 28 | ||||||||||||||||||||||||||||||
Total segment revenues | $ | 645 | $ | 647 | $ | 629 | $ | 633 | $ | 554 | $ | 561 | $ | 703 | $ | 706 | $ | 2,531 | $ | 2,547 | ||||||||||||||||||||
Total segment operating income | $ | 120 | $ | 110 | $ | 119 | $ | 99 | $ | 59 | $ | 46 | $ | 222 | $ | 208 | $ | 520 | $ | 463 |
Investment, Risk and Reinsurance | Q1 | Q2 | Q3 | Q4 | FY 2016 | |||||||||||||||||||||||||||||||||||
Reported | Recast | Reported | Recast | Reported | Recast | Reported | Recast | Reported | Recast | |||||||||||||||||||||||||||||||
Segment commissions and fees | $ | 475 | $ | 498 | $ | 355 | $ | 380 | $ | 292 | $ | 312 | $ | 260 | $ | 285 | $ | 1,382 | $ | 1,475 | ||||||||||||||||||||
Segment interest and other income | 4 | 4 | 44 | 44 | 7 | 7 | 4 | 4 | 59 | 59 | ||||||||||||||||||||||||||||||
Total segment revenues | $ | 479 | $ | 502 | $ | 399 | $ | 424 | $ | 299 | $ | 319 | $ | 264 | $ | 289 | $ | 1,441 | $ | 1,534 | ||||||||||||||||||||
Total segment operating income | $ | 176 | $ | 199 | $ | 101 | $ | 123 | $ | 25 | $ | 38 | $ | 4 | $ | 23 | $ | 306 | $ | 383 |
Exchange Solutions | Q1 | Q2 | Q3 | Q4 | FY 2016 | |||||||||||||||||||||||||||||||||||
Reported | Recast | Reported | Recast | Reported | Recast | Reported | Recast | Reported | Recast | |||||||||||||||||||||||||||||||
Segment commissions and fees | $ | 163 | $ | 163 | $ | 154 | $ | 154 | $ | 161 | $ | 161 | $ | 174 | $ | 174 | $ | 652 | $ | 652 | ||||||||||||||||||||
Segment interest and other income | — | — | 1 | 1 | — | — | 1 | 1 | 2 | 2 | ||||||||||||||||||||||||||||||
Total segment revenues | $ | 163 | $ | 163 | $ | 155 | $ | 155 | $ | 161 | $ | 161 | $ | 175 | $ | 175 | $ | 654 | $ | 654 | ||||||||||||||||||||
Total segment operating income | $ | 39 | $ | 43 | $ | 30 | $ | 34 | $ | 19 | $ | 23 | $ | 14 | $ | 19 | $ | 102 | $ | 119 |
Segment Totals | Q1 | Q2 | Q3 | Q4 | FY 2016 | |||||||||||||||||||||||||||||||||||
Reported | Recast | Reported | Recast | Reported | Recast | Reported | Recast | Reported | Recast | |||||||||||||||||||||||||||||||
Segment commissions and fees | $ | 2,228 | $ | 2,228 | $ | 1,892 | $ | 1,892 | $ | 1,746 | $ | 1,746 | $ | 1,880 | $ | 1,880 | $ | 7,746 | $ | 7,746 | ||||||||||||||||||||
Segment interest and other income | 14 | 14 | 56 | 56 | 15 | 15 | 21 | 21 | 106 | 106 | ||||||||||||||||||||||||||||||
Total segment revenues | $ | 2,242 | $ | 2,242 | $ | 1,948 | $ | 1,948 | $ | 1,761 | $ | 1,761 | $ | 1,901 | $ | 1,901 | $ | 7,852 | $ | 7,852 | ||||||||||||||||||||
Total segment operating income | $ | 632 | $ | 665 | $ | 363 | $ | 384 | $ | 224 | $ | 234 | $ | 389 | $ | 410 | $ | 1,608 | $ | 1,693 |
Q1 | Q2 | Q3 | Q4 | FY 2016 | |||||||||||||||||||||||||||||||||||
Reported | Recast | Reported | Recast | Reported | Recast | Reported | Recast | Reported | Recast | ||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||
Total segment revenues | $ | 2,242 | $ | 2,242 | $ | 1,948 | $ | 1,948 | $ | 1,761 | $ | 1,761 | $ | 1,901 | $ | 1,901 | $ | 7,852 | $ | 7,852 | |||||||||||||||||||
Fair value adjustment to deferred revenue | (32 | ) | (32 | ) | (26 | ) | (26 | ) | — | — | — | — | (58 | ) | (58 | ) | |||||||||||||||||||||||
Reimbursable expenses and other | 24 | 24 | 27 | 27 | 16 | 16 | 26 | 26 | 93 | 93 | |||||||||||||||||||||||||||||
Total revenues | $ | 2,234 | $ | 2,234 | $ | 1,949 | $ | 1,949 | $ | 1,777 | $ | 1,777 | $ | 1,927 | $ | 1,927 | $ | 7,887 | $ | 7,887 | |||||||||||||||||||
Total segment operating income | $ | 632 | $ | 665 | $ | 363 | $ | 384 | $ | 224 | $ | 234 | $ | 389 | $ | 410 | $ | 1,608 | $ | 1,693 | |||||||||||||||||||
Differences in allocation methods | 8 | — | (3 | ) | — | 20 | — | (7 | ) | — | 18 | — | |||||||||||||||||||||||||||
Fair value adjustment for deferred revenue | (32 | ) | (32 | ) | (26 | ) | (26 | ) | — | — | — | — | (58 | ) | (58 | ) | |||||||||||||||||||||||
Amortization | (161 | ) | (161 | ) | (125 | ) | (125 | ) | (157 | ) | (157 | ) | (148 | ) | (148 | ) | (591 | ) | (591 | ) | |||||||||||||||||||
Restructuring costs | (25 | ) | (25 | ) | (41 | ) | (41 | ) | (49 | ) | (49 | ) | (78 | ) | (78 | ) | (193 | ) | (193 | ) | |||||||||||||||||||
Transaction and integration expenses | (52 | ) | (52 | ) | (29 | ) | (29 | ) | (36 | ) | (36 | ) | (60 | ) | (60 | ) | (177 | ) | (177 | ) | |||||||||||||||||||
Provision for the Stanford litigation | (50 | ) | (50 | ) | — | — | — | — | — | — | (50 | ) | (50 | ) | |||||||||||||||||||||||||
Other, net | 6 | — | (3 | ) | — | (1 | ) | — | (8 | ) | — | (6 | ) | — | |||||||||||||||||||||||||
Unallocated, net (i) | — | (19 | ) | — | (27 | ) | — | 9 | — | (36 | ) | — | (73 | ) | |||||||||||||||||||||||||
Income from operations | 326 | 326 | 136 | 136 | 1 | 1 | 88 | 88 | 551 | 551 | |||||||||||||||||||||||||||||
Interest expense | 46 | 46 | 47 | 47 | 45 | 45 | 46 | 46 | 184 | 184 | |||||||||||||||||||||||||||||
Other expense/(income), net | 18 | 18 | (6 | ) | (6 | ) | 14 | 14 | 1 | 1 | 27 | 27 | |||||||||||||||||||||||||||
Income/(loss) from operations before income taxes and interest in earnings of associates | $ | 262 | $ | 262 | $ | 95 | $ | 95 | $ | (58 | ) | $ | (58 | ) | $ | 41 | $ | 41 | $ | 340 | $ | 340 |
(i) | Includes certain costs, primarily related to corporate functions which are not directly related to the business and differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes. In the Reported periods, these amounts were presented as either Differences in allocation methods or Other, net. |