Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Entity Registrant Name | WILLIS TOWERS WATSON PLC | ||
Entity Central Index Key | 0001140536 | ||
Trading Symbol | WTW | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 102,481,452 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 24,662,440,773 | ||
Entity File Number | 001-16503 | ||
Entity Incorporation, State or Country Code | L2 | ||
Entity Tax Identification Number | 98-0352587 | ||
Entity Address, Address Line One | c/o Willis Group Limited | ||
Entity Address, Address Line Two | 51 Lime Street | ||
Entity Address, City or Town | London | ||
Entity Address, Country | GB | ||
Entity Address, Postal Zip Code | EC3M 7DQ | ||
City Area Code | 011 | ||
Local Phone Number | 44-20-3124-6000 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Ordinary Shares, nominal value $0.000304635 per share | ||
Security Exchange Name | NASDAQ | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Philadelphia, PA | ||
Auditor Firm ID | 34 | ||
Documents Incorporated by Reference | Portions of Part III will be incorporated by reference in accordance with Instruction G(3) to Form 10-K no later than 120 days after the end of the Company’s fiscal year. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 9,483 | $ 8,866 | $ 8,998 |
Costs of providing services | |||
Salaries and benefits | 5,344 | 5,065 | 5,253 |
Other operating expenses | 1,815 | 1,776 | 1,673 |
Depreciation | 242 | 255 | 281 |
Amortization | 263 | 312 | 369 |
Restructuring costs | 68 | 99 | 26 |
Transaction and transformation | 386 | 181 | (806) |
Total costs of providing services | 8,118 | 7,688 | 6,796 |
Income from operations | 1,365 | 1,178 | 2,202 |
Interest expense | (235) | (208) | (211) |
Other income, net | 149 | 288 | 701 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 1,279 | 1,258 | 2,692 |
Provision for income taxes | (215) | (194) | (536) |
INCOME FROM CONTINUING OPERATIONS | 1,064 | 1,064 | 2,156 |
(Loss)/income from discontinued operations, net of tax | 0 | (40) | 2,080 |
NET INCOME | 1,064 | 1,024 | 4,236 |
Income attributable to non-controlling interests | (9) | (15) | (14) |
NET INCOME ATTRIBUTABLE TO WTW | $ 1,055 | $ 1,009 | $ 4,222 |
Basic earnings per share: | |||
Income from continuing operations per share | $ 10.01 | $ 9.36 | $ 16.68 |
Income from discontinued operations per share | 0 | (0.36) | 16.20 |
Basic earnings per share | 10.01 | 9 | 32.88 |
Diluted earnings per share: | |||
Income from continuing operations per share | 9.95 | 9.34 | 16.63 |
(Loss)/income from discontinued operations per share | 0 | (0.36) | 16.15 |
Diluted earnings per share | $ 9.95 | $ 8.98 | $ 32.78 |
NET INCOME | $ 1,064 | $ 1,024 | $ 4,236 |
Other comprehensive (loss)/income, net of tax: | |||
Foreign currency translation | 173 | (499) | (87) |
Defined pension and post-retirement benefits | (408) | 65 | 260 |
Derivative instruments | 2 | (2) | 2 |
Other comprehensive (loss)/income, net of tax, before non-controlling interests | (233) | (436) | 175 |
Comprehensive income before non-controlling interests | 831 | 588 | 4,411 |
Comprehensive income attributable to non-controlling interests | (11) | (14) | (16) |
Comprehensive income attributable to WTW | $ 820 | $ 574 | $ 4,395 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 1,424 | $ 1,262 |
Fiduciary assets | 9,073 | 11,772 |
Accounts receivable, net | 2,572 | 2,387 |
Prepaid and other current assets | 364 | 414 |
Total current assets | 13,433 | 15,835 |
Fixed assets, net | 720 | 718 |
Goodwill | 10,195 | 10,173 |
Other intangible assets, net | 2,016 | 2,273 |
Right-of-use assets | 565 | 586 |
Pension benefits assets | 588 | 827 |
Other non-current assets | 1,573 | 1,357 |
Total non-current assets | 15,657 | 15,934 |
TOTAL ASSETS | 29,090 | 31,769 |
LIABILITIES AND EQUITY | ||
Fiduciary liabilities | 9,073 | 11,772 |
Deferred revenue and accrued expenses | 2,104 | 1,915 |
Current debt | 650 | 250 |
Current lease liabilities | 125 | 126 |
Other current liabilities | 678 | 716 |
Total current liabilities | 12,630 | 14,779 |
Long-term debt | 4,567 | 4,471 |
Liability for pension benefits | 563 | 480 |
Deferred tax liabilities | 542 | 748 |
Provision for liabilities | 365 | 357 |
Long-term lease liabilities | 592 | 620 |
Other non-current liabilities | 238 | 221 |
Total non-current liabilities | 6,867 | 6,897 |
TOTAL LIABILITIES | 19,497 | 21,676 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Additional paid-in capital | 10,910 | 10,876 |
Retained earnings | 1,466 | 1,764 |
Accumulated other comprehensive loss, net of tax | (2,856) | (2,621) |
Treasury shares, at cost, 17,519 in 2022 | 0 | (3) |
Total WTW shareholders' equity | 9,520 | 10,016 |
Non-controlling interests | 73 | 77 |
Total equity | 9,593 | 10,093 |
TOTAL LIABILITIES AND EQUITY | $ 29,090 | $ 31,769 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preference shares, nominal value (USD per share) | $ 0.000115 | $ 0.000115 |
Preference shares, shares authorized | 1,000,000,000 | 1,000,000,000 |
Preference shares, shares issued | 0 | 0 |
Ordinary shares, $0.000304635 nominal value [Member] | ||
Ordinary shares, nominal value | $ 0.000304635 | $ 0.000304635 |
Ordinary shares, shares authorized | 1,510,003,775 | 1,510,003,775 |
Ordinary shares, shares issued | 102,538,072 | 106,756,364 |
Ordinary shares, shares outstanding | 102,538,072 | 106,756,364 |
Treasury shares | 17,519 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
NET INCOME | $ 1,064 | $ 1,024 | $ 4,236 | |
Adjustments to reconcile net income to total net cash from operating activities: | ||||
Depreciation | 242 | 255 | 281 | |
Amortization | 263 | 312 | 369 | |
Impairment | 0 | 81 | 0 | |
Non-cash restructuring charges | 38 | 71 | 0 | |
Non-cash lease expense | 105 | 120 | 160 | |
Net periodic benefit of defined benefit pension plans | (26) | (153) | (168) | |
Provision for doubtful receivables from clients | 6 | 13 | 19 | |
(Benefit from)/provision for deferred income taxes | (109) | (50) | 226 | |
Share-based compensation | 125 | 99 | 101 | |
Net (gain)/loss on disposal of operations | (43) | 59 | (2,679) | |
Non-cash foreign exchange loss/(gain) | 20 | (137) | (10) | |
Other, net | 31 | 6 | (25) | |
Changes in operating assets and liabilities, net of effects from purchase of subsidiaries: | ||||
Accounts receivable | (206) | (188) | (134) | |
Other assets | (185) | (197) | (122) | |
Other liabilities | 16 | (495) | (175) | |
Provisions | 4 | (8) | (18) | |
Net cash from operating activities | 1,345 | 812 | 2,061 | |
CASH FLOWS (USED IN)/FROM INVESTING ACTIVITIES | ||||
Additions to fixed assets and software for internal use | (153) | (138) | (148) | |
Capitalized software costs | (89) | (66) | (53) | |
Acquisitions of operations, net of cash acquired | (6) | (81) | (47) | |
Net proceeds/(payments) from sale of operations | 89 | (59) | 4,048 | |
Cash and fiduciary funds transferred in sale of operations | (922) | (29) | (1,030) | |
(Purchase)/sale of investments | (4) | 200 | (200) | |
Net cash (used in)/from investing activities | (1,085) | (173) | 2,570 | |
CASH FLOWS USED IN FINANCING ACTIVITIES | ||||
Senior notes issued | 748 | 750 | 0 | |
Debt issuance costs | (7) | (5) | (4) | |
Repayments of debt | (254) | (585) | (1,008) | |
Repurchase of shares | (1,000) | (3,530) | (1,627) | |
Proceeds from issuance of shares | 0 | 7 | 10 | |
Net (payments)/proceeds from fiduciary funds held for clients | (234) | 354 | (40) | |
Payments of deferred and contingent consideration related to acquisitions | (12) | (22) | (19) | |
Cash paid for employee taxes on withholding shares | (26) | (34) | (16) | |
Dividends paid | (352) | (369) | (374) | |
Acquisitions of and dividends paid to non-controlling interests | (63) | (11) | (36) | |
Net cash used in financing activities | (1,200) | (3,445) | (3,114) | |
(DECREASE)/INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | [1] | (940) | (2,806) | 1,517 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 11 | (164) | (127) | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR | [1] | 4,721 | 7,691 | 6,301 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR | [1] | $ 3,792 | $ 4,721 | $ 7,691 |
[1] The amounts of cash, cash equivalents and restricted cash, their respective classification on the consolidated balance sheets as well as their respective portions of the increase or decrease in cash, cash equivalents and restricted cash for each of the periods presented have been included in Note 21 — Supplemental Disclosures of Cash Flow Information. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Shares outstanding [Member] | Ordinary shares and APIC [Member] | Retained earnings [Member] | Treasury Stock, Common [Member] | AOCL [Member] | [1] | Total WTW shareholders' equity [Member] | Non-controlling interests [Member] | |
Equity, beginning balance at Dec. 31, 2020 | $ 10,932 | $ 10,748 | $ 2,434 | $ (3) | $ (2,359) | $ 10,820 | $ 112 | |||
Equity, beginning balance (in shares) at Dec. 31, 2020 | 128,965,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares repurchased | (1,627) | (1,627) | (1,627) | |||||||
Shares repurchased (in shares) | (7,155,000) | |||||||||
Net income | 4,236 | 4,222 | 4,222 | 14 | ||||||
Dividends declared | (384) | (384) | (384) | |||||||
Dividends attributable to non-controlling interests | (29) | (29) | ||||||||
Other comprehensive (loss)/income | 175 | 173 | 173 | 2 | ||||||
Issuance of shares under employee stock compensation plans | 10 | 10 | 10 | |||||||
Issuance of shares under employee stock compensation plans (in shares) | 246,000 | |||||||||
Share-based compensation and net settlements | 47 | 47 | 47 | |||||||
Reduction of non-controlling interests | [2] | (59) | (8) | (8) | (51) | |||||
Foreign currency translation | 7 | 7 | 7 | |||||||
Equity, ending balance at Dec. 31, 2021 | 13,308 | 10,804 | 4,645 | (3) | (2,186) | 13,260 | 48 | |||
Equity, ending balance (in shares) at Dec. 31, 2021 | 122,056,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares repurchased | (3,530) | (3,530) | (3,530) | |||||||
Shares repurchased (in shares) | (15,729,000) | |||||||||
Net income | 1,024 | 1,009 | 1,009 | 15 | ||||||
Dividends declared | (360) | (360) | (360) | |||||||
Dividends attributable to non-controlling interests | (10) | (10) | ||||||||
Other comprehensive (loss)/income | (436) | (435) | (435) | (1) | ||||||
Issuance of shares under employee stock compensation plans | 7 | 7 | 7 | |||||||
Issuance of shares under employee stock compensation plans (in shares) | 429,000 | |||||||||
Share-based compensation and net settlements | 54 | 54 | 54 | |||||||
Additional non-controlling interests | 27 | 27 | ||||||||
Reduction of non-controlling interests | [2] | 2 | 2 | (2) | ||||||
Foreign currency translation | 9 | 9 | 9 | |||||||
Equity, ending balance at Dec. 31, 2022 | 10,093 | 10,876 | 1,764 | (3) | (2,621) | 10,016 | 77 | |||
Equity, ending balance (in shares) at Dec. 31, 2022 | 106,756,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares repurchased | (1,000) | (3) | (1,000) | 3 | (1,000) | |||||
Shares repurchased (in shares) | (4,483,000) | |||||||||
Net income | 1,064 | 1,055 | 1,055 | 9 | ||||||
Dividends declared | (353) | (353) | (353) | |||||||
Dividends attributable to non-controlling interests | (13) | (13) | ||||||||
Other comprehensive (loss)/income | (233) | (235) | (235) | 2 | ||||||
Issuance of shares under employee stock compensation plans | $ 0 | 0 | 0 | |||||||
Issuance of shares under employee stock compensation plans (in shares) | 265,000 | 265,000 | ||||||||
Share-based compensation and net settlements | $ 89 | 89 | 89 | |||||||
Reduction of non-controlling interests | [2] | (49) | (47) | (47) | (2) | |||||
Foreign currency translation | (5) | (5) | (5) | |||||||
Equity, ending balance at Dec. 31, 2023 | $ 9,593 | $ 10,910 | $ 1,466 | $ 0 | $ (2,856) | $ 9,520 | $ 73 | |||
Equity, ending balance (in shares) at Dec. 31, 2023 | 102,538,000 | |||||||||
[1] Accumulated other comprehensive loss, net of tax (‘AOCL’). Attributable to the divestiture of businesses that are less than wholly-owned or the acquisition of shares previously owned by minority interest holders. In an acquisition, additional paid-in capital is adjusted as well to the extent that the consideration transferred differs from the carrying value of non-controlling interests prior to the acquisition. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share | $ 3.36 | $ 3.28 | $ 3.02 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 1,055 | $ 1,009 | $ 4,222 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b51 Arr Modified Flag | false |
Non Rule 10b51 Arr Modified Flag | false |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Note 1 — Nature of Operations Willis Towers Watson Public Limited Company is a leading global advisory, broking and solutions company that provides data-driven, insight-led solutions in the areas of people, risk and capital. The Company has 48,000 colleagues serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent and expand the power of capital to protect and strengthen institutions and individuals. Our risk control services include strategic risk consulting (including providing actuarial analysis), a variety of due diligence services, the provision of practical on-site risk control services (such as health and safety or property loss control consulting), and analytical and advisory services (such as hazard modeling and climate risk quantification). We also assist our clients with managing incidents or crises when they occur. These services include contingency planning, security audits and product tampering plans. We help our clients enhance their business performance by delivering consulting services, technology and solutions that help them anticipate, identify and capitalize on emerging opportunities in human capital management, as well as offer investment advice to help them develop disciplined and efficient strategies to meet their investment goals. As an insurance broker, we act as an intermediary between our clients and insurance carriers by advising on their risk management requirements, helping them to determine the best means of managing risk and negotiating and placing insurance with insurance carriers through our global distribution network. We operate a private Medicare marketplace in the U.S. through which, along with our active employee marketplace, we help our clients move to a more sustainable economic model by capping and controlling the costs associated with healthcare benefits. We also provide direct-to-consumer sales of Medicare coverage. We are not an insurance company, and therefore we do not underwrite insurable risks for our own account. We help sharpen strategies, enhance organizational resilience, motivate workforces and maximize performance to uncover opportunities for sustainable success. |
Basis of Presentation, Signific
Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements | Note 2 — Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements Basis of Presentation The accompanying audited consolidated financial statements of WTW and our subsidiaries are presented in accordance with the rules and regulations of the SEC for annual reports on Form 10-K and are prepared in accordance with U.S. GAAP. All intercompany accounts and transactions have been eliminated in consolidation. Significant Accounting Policies Principles of Consolidation — The accompanying consolidated financial statements include the accounts of WTW and those of our majority-owned and controlled subsidiaries. We determine whether we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (‘VIE’). Variable interest entities are entities that lack one or more of the characteristics of a voting interest entity and therefore require a different approach in determining which party involved with the VIE should consolidate the entity. With a VIE, either the entity does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties, or the equity holders, as a group, do not have the power to direct the activities that most significantly impact its financial performance, the obligation to absorb expected losses of the entity, or the right to receive the expected residual returns of the entity. The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. Voting interest entities are entities that have sufficient equity and provide equity investors voting rights that give them the power to make significant decisions related to the entity’s operations. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. Accordingly, we consolidate our voting interest entity investments in which we hold, directly or indirectly, more than 50 % of the voting rights. Use of Estimates — These consolidated financial statements conform to U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Our estimates, judgments and assumptions are continually evaluated based on available information and experience. Because of the use of estimates inherent in the financial reporting process, actual results could differ from those estimates. Estimates are used when accounting for revenue recognition and related costs, the selection of useful lives of fixed and intangible assets, impairment testing, valuation of billed and unbilled receivables from clients, discretionary compensation, income taxes, pension assumptions, incurred but not reported claims, legal reserves and goodwill and intangible assets. Going Concern — Management evaluates at each annual and interim period whether there are conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. Management’s evaluation is based on relevant conditions and events that are known and reasonably knowable at the date that the consolidated financial statements are issued. Management has concluded that there are no conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date of these financial statements. Fair Value of Financial Instruments — The carrying values of our cash, cash equivalents and restricted cash, accounts receivable, short-term investments, accrued expenses and revolving lines of credit approximate their fair values because of the short maturity and liquidity of those instruments. The fair value of our senior notes and note receivable are considered Level 2 financial instruments as they are corroborated by observable market data. See Note 12 — Fair Value Measurements for additional information about our measurements of fair value. Cash and Cash Equivalents — Cash and cash equivalents primarily consist of time deposits with original maturities of three months or less. In certain of the countries in which we conduct business, we are subject to capital adequacy requirements. Most significantly, Willis Limited, our U.K. brokerage subsidiary regulated by the Financial Conduct Authority, is currently required to maintain $ 105 million in unencumbered and available financial resources, of which at least $ 66 million must be in cash, for regulatory purposes. Term deposits and certificates of deposits with original maturities greater than three months are considered to be short-term investments and are included in Prepaid and other current assets. Additionally, see Note 21 — Supplemental Disclosures of Cash Flow Information for a reconciliation of the cash, cash equivalents and restricted cash as presented on our consolidated balance sheets and the consolidated statements of cash flows. Fiduciary Assets and Liabilities — The Company collects premiums from insureds and, after deducting commissions, remits the premiums to the respective insurers. The Company also collects claims or refunds from insurers on behalf of insureds. Certain of our health and welfare benefits administration outsourcing agreements require us to hold funds on behalf of clients to pay obligations on their behalf or for plan participants to pay for medical costs (‘benefit funds’). Benefit funds held in cash and cash equivalents are part of fiduciary funds. In some instances, plan participants direct us to invest these benefit funds on their behalf (‘benefit funds investments’). Each of these transactions is reported on our consolidated balance sheets as assets and corresponding liabilities unless such balances are due to or from the same party and a right of offset exists, in which case the balances are recorded net. Fiduciary assets on the consolidated balance sheets are comprised of fiduciary funds, benefit funds investments and fiduciary receivables: Fiduciary funds – These amounts are restricted cash and cash equivalents held for unremitted insurance premiums and claims and benefit funds not invested, and are recorded within fiduciary assets on the consolidated balance sheets. Fiduciary funds are generally required to be kept in certain regulated bank accounts subject to guidelines which emphasize capital preservation and liquidity. Such funds are not available to service the Company’s debt or for other corporate purposes. Notwithstanding the legal relationships with insureds and insurers and excluding earnings on benefit funds, the Company is entitled to retain investment income earned on fiduciary funds in accordance with industry custom and practice and, in some cases, as supported by agreements with insureds. The period for which the Company holds such funds in its broking capacity is dependent upon the date the insured remits the payment of the premium to the Company, or the date the Company receives a refund from the insurer, and the date the Company is required to forward such payments to the insurer or insured, respectively. For the benefit funds, cash and cash equivalents are held until the funds are directed by plan participants to either be invested in mutual funds or paid out on their behalf. Fiduciary funds are included in the beginning and ending balances of cash, cash equivalents and restricted cash in the consolidated statements of cash flows. See Note 21 — Supplemental Disclosures of Cash Flow Information for a reconciliation of the fiduciary funds as presented on our consolidated balance sheets and the consolidated statements of cash flows. Benefit funds investments – Benefit funds investments can be invested in open-ended mutual funds at the direction of the participant. Such funds are not available to service the Company’s debt or for other corporate purposes and earnings accrue to the participant. Fiduciary receivables – Uncollected premiums from insureds, uncollected claims or refunds from insurers and unremitted benefits funds are recorded as fiduciary assets on the consolidated balance sheets. In certain instances, the Company advances premiums, refunds or claims to insurance underwriters or insureds prior to collection. Such advances are made from fiduciary funds and are reflected in the consolidated balance sheets as fiduciary assets. Fiduciary liabilities on the consolidated balance sheets represent the obligations to remit all fiduciary assets as required under the terms of the various arrangements. Fiduciary receivables and liabilities for which cash has not been collected are equal and offsetting and have not been presented in the consolidated statements of cash flows. Accounts Receivable — Accounts receivable includes both billed and unbilled receivables and is stated at estimated net realizable values. Provision for billed receivables is recorded, when necessary, in an amount considered by management to be sufficient to meet probable future losses related to uncollectible accounts. Accrued and unbilled receivables are stated at net realizable value which includes an allowance for accrued and unbillable amounts. See Note 4 — Revenue for additional information about our accounts receivable. Acquired Accounts Receivable — As part of the acquisition accounting for the TRANZACT business in 2019, the acquired accounts receivable arising from direct-to-consumer Medicare broking sales were present-valued at the acquisition date in accordance with ASC 805, Business Combinations (‘ASC 805’). Cash collections for these receivables are expected to occur over a period of several years. Due to the provisions of ASC 606, Revenue From Contracts With Customers (‘ASC 606’), these receivables are not discounted for a significant financing component when initially recognized. Following the acquisition, the acquired renewal commissions receivables have been accounted for prospectively using the cost-recovery method in which future cash receipts will initially be applied against the acquisition date fair value until the value reaches zero. Any cash received in excess of the fair value determined at acquisition is recorded to earnings when it is received. The adjusted values of these acquired renewal commissions receivables are included in Prepaid and other current assets or Other non-current assets, as appropriate, on the consolidated balance sheets. Income Taxes — The Company recognizes deferred tax assets and liabilities for the estimated future tax consequences of events attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating and capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized for continuing operations in the consolidated statement of comprehensive income in the period in which the change is enacted. Deferred tax assets are reduced through the establishment of a valuation allowance at such time as, based on available evidence, it is more likely than not that the deferred tax assets will not be realized. The Company adjusts valuation allowances to measure deferred tax assets at the amounts considered realizable in future periods, which is assessed at each balance sheet date. In making such determinations, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operating results. We place more reliance on evidence that is objectively verifiable. Positions taken in the Company’s tax returns may be subject to challenge by the taxing authorities upon examination. The Company recognizes the benefits of uncertain tax positions in the financial statements when it is more likely than not that a position will be sustained on the basis of the technical merits of the position assuming the tax authorities have full knowledge of the position and all relevant facts. Recognition also occurs upon either the lapse of the relevant statute of limitations or when positions are effectively settled. The benefit recognized is the largest amount of tax benefit that is greater than 50 percent likely to be realized on settlement with the tax authority. The Company adjusts its recognition of uncertain tax benefits in the period in which new information is available impacting either the recognition or measurement of its uncertain tax positions. Such adjustments are reflected as increases or decreases to income taxes in the period in which they are determined. The Company recognizes interest and penalties relating to unrecognized tax benefits within income taxes. See Note 7 — Income Taxes for additional information regarding the Company’s income taxes. Foreign Currency — Transactions in currencies other than the functional currency of the entity are recorded at the rates of exchange prevailing at the date of the transaction. Monetary assets and liabilities in currencies other than the functional currency are translated at the rates of exchange prevailing at the balance sheet date and the related transaction gains and losses are reported as income or expense in the consolidated statements of comprehensive income. Certain intercompany loans are determined to be of a long-term investment nature. The Company records transaction gains and losses from re-measuring such loans as other comprehensive income in the consolidated statements of comprehensive income. Upon consolidation, the results of operations of subsidiaries and associates whose functional currency is other than the U.S. dollar are translated into U.S. dollars at the average exchange rates, and assets and liabilities are translated at year-end exchange rates. Translation adjustments are presented as a separate component of other comprehensive income in the financial statements and are included in net income only upon sale or liquidation of the underlying foreign subsidiary or associated company. Derivatives — The Company uses derivative financial instruments to alter the risk profile of an existing underlying exposure. Forward and option foreign currency exchange contracts are used to manage currency exposures arising from future income and expenses and to offset balance sheet exposures in currencies other than the functional currency of an entity. We do not hold any derivatives for trading purposes. The fair values of derivative contracts are recorded in other assets and other liabilities in the consolidated balance sheets. The effective portions of changes in the fair value of derivatives that qualify for hedge accounting as cash flow hedges are recorded in other comprehensive income. Amounts are reclassified from other comprehensive income into earnings when the hedged exposure affects earnings. If the derivative is designated and qualifies as an effective hedge, the changes in the fair value of the derivative and of the hedged item associated with the hedged risk are both recognized in earnings. The amount of hedge ineffectiveness recognized in earnings is based on the extent to which an offset between the fair value of the derivative and hedged item is not achieved. Changes in the fair value of derivatives that do not qualify for hedge accounting, together with any hedge ineffectiveness on those that do qualify, are recorded in Other income, net or interest expense as appropriate. The Company evaluates whether its contracts include clauses or conditions which would be required to be separately accounted for at fair value as embedded derivatives. See Note 10 — Derivative Financial Instruments for additional information about the Company’s derivatives. Commitments, Contingencies and Provisions for Liabilities — The Company establishes provisions against various actual and potential claims, lawsuits and other proceedings relating principally to alleged errors and omissions in the ordinary course of business. Such provisions cover claims that have been reported but not paid and also unasserted claims and related legal fees. These provisions are established based on actuarial estimates together with individual case reviews and are believed to be adequate in light of current information and legal advice. In certain cases, where a range of loss exists, we accrue the minimum amount in the range if no amount within the range is a better estimate than any other amount. To the extent such losses can be recovered under the Company’s insurance programs, estimated recoveries are recorded when losses for insured events are recognized and the recoveries are likely to be realized. Significant management judgment is required to estimate the amounts of such unasserted claims and the related insurance recoveries. The Company analyzes its litigation exposure based on available information, including consultation with outside counsel handling the defense of these matters, to assess its potential liability. These contingent liabilities are not discounted. See Note 15 — Commitments and Contingencies and Note 16 — Supplementary Information for Certain Balance Sheet Accounts for additional information about our commitments, contingencies and provisions for liabilities. Share-Based Compensation — The Company has equity-based compensation plans that provide for grants of restricted stock units and stock options to employees and non-employee directors of the Company. Additionally, the Company has cash-settled share-based compensation plans that provide for grants to employees. The Company expenses equity-based compensation, which is included in Salaries and benefits in the consolidated statements of comprehensive income, primarily on a straight-line basis over the requisite service period. The significant assumptions underlying our expense calculations include the fair value of the award on the date of grant, the estimated achievement of any performance targets and estimated forfeiture rates. The awards under equity-based compensation are classified as equity and are included as a component of equity on the Company’s consolidated balance sheets, as the ultimate payment of such awards will not be achieved through use of the Company’s cash or other assets. For the cash-settled share-based compensation, the Company recognizes a liability for the fair-value of the awards as of each reporting date. The liability for these awards is included within Other current liabilities or Other non-current liabilities in the consolidated balance sheets depending on when the amounts are payable. Expense is recognized over the service period, and as the liability is remeasured at the end of each reporting period, changes in fair value are recognized as compensation cost within Salaries and benefits in the consolidated statements of comprehensive income. The significant assumptions underlying our expense calculations include the estimated achievement of any performance targets and estimated forfeiture rates. See Note 19 — Share-based Compensation for additional information about the Company’s share-based compensation. Fixed Assets — Fixed assets are stated at cost less accumulated depreciation. Expenditures for improvements are capitalized; repairs and maintenance are charged to expense as incurred. Depreciation is computed primarily using the straight-line method based on the estimated useful lives of assets. Depreciation on internally-developed software is amortized over the estimated useful life of the asset ranging from 3 to 10 years . Buildings include assets held under finance leases and are depreciated over the lesser of 50 years, the asset lives or the lease terms, as appropriate. Depreciation on leasehold improvements is calculated over the lesser of the useful lives of the assets or the remaining lease terms. Depreciation on furniture and equipment is calculated based on a range of 3 to 10 years . Land is not depreciated. Long-lived assets are tested for recoverability whenever events or changes in circumstance indicate that their carrying amounts may not be recoverable. An impairment loss is recognized if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. Recoverability is determined based on the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. Long-lived assets and certain identifiable intangible assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. See Note 8 — Fixed Assets for additional information about our fixed assets. Leases — As an advisory, broking and solutions company providing services to clients in more than 140 countries, we enter into lease agreements from time to time, primarily for the use of real estate for our office space. We determine if an arrangement is a lease at the inception of the contract, and the nature of our operations is such that it is generally clear whether an arrangement contains a lease and what underlying asset is being leased. The majority of the leases into which we enter are operating leases. Upon entering into leases, we obtain the right to control the use of an identified space for a lease term and recognize these right-of-use (‘ROU’) assets on our consolidated balance sheets with corresponding lease liabilities reflecting our obligation to make the related lease payments. ROU assets are amortized over the term of the lease. Our real estate leases are generally long-term in nature, with terms that currently range from three to 11 years . Our most significant lease supports our London market operations with a lease term through 2032. Our real estate leases often contain options to renew the lease, either through exercise of the option or through automatic renewal. Additionally, certain leases have options to cancel the lease with appropriate notice to the landlord prior to the end of the stated lease term. As we enter into new leases, we consider these options as we assess lease terms in our recognized ROU assets and lease liabilities. If we are reasonably certain to exercise an option to renew a lease, we include this period in our lease term. To the extent that we have the option to cancel a lease, we recognize our ROU assets and lease liabilities using the term that would result from using this earlier date. If a significant penalty is required to cancel the lease at an earlier date, we assess our lease term as ending at the point when no significant penalty would be due. In addition to payments for previously-agreed base rent, many of our lease agreements are subject to variable and unknown future payments, typically in the form of common area maintenance charges (a non-lease component as defined by ASC 842, Leases (‘ASC 842’)) or real estate taxes. These variable payments are excluded from our lease liabilities and ROU assets, and instead are recognized as lease expense within Other operating expenses on the consolidated statement of comprehensive income as the amounts are incurred. To the extent that we have agreed to fixed charges for common area maintenance or other non-lease components, or our base rent increases by an index or rate (most commonly an inflation rate), these amounts are included in the measurement of our lease liabilities and ROU assets. We have elected the practical expedient under ASC 842 which allows the lease and non-lease components to be combined in our measurement of lease liabilities and ROU assets. From time to time we may enter into subleases if we are unable to cancel or fully occupy a space and are able to find an appropriate subtenant. However, entering subleases is not a primary objective of our business operations and these arrangements do not currently represent a material amount of cash flows. We are required to use judgment in the determination of the incremental borrowing rates to calculate the present values of our future lease payments. Since the majority of our debt is publicly traded, our real estate function is centralized, and our treasury function is centralized and generally prohibits our subsidiaries from borrowing externally, we have determined it appropriate to use the Company’s consolidated unsecured borrowing rate, and we adjust for collateralization in accordance with ASC 842. Using the resulting interest rate curves from publicly traded debt at this collateralized borrowing rate, we select the interest rate at lease inception by reference to the lease term and lease currency. Approximately 90 % of our leases are denominated in U.S. dollars, Pounds sterling or Euros. Our leases generally do not subject us to restrictive covenants and contain no residual value guarantees. See Note 14 — Leases for additional information about our operating leases. Goodwill and Other Intangible Assets — In applying the acquisition method of accounting for business combinations, amounts assigned to identifiable assets and liabilities acquired were based on estimated fair values as of the date of acquisition, with the remainder recorded as goodwill. Intangible assets are initially valued at fair value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over their estimated useful lives and are reviewed for impairment if indicators of impairment arise. Intangible assets with indefinite lives are tested for impairment annually as of October 1, and whenever indicators of impairment exist. The fair values of intangible assets are compared with their carrying values, and an impairment loss would be recognized for the amount by which a carrying amount exceeds its fair value. Acquired intangible assets held at December 31, 2023 are being amortized on the basis noted and over the following expected life: Amortization basis Expected life (years) Client relationships In line with underlying cash flows 3 to 21 Software In line with underlying cash flows or straight-line basis 5 to 9 Trademark and trade name Straight-line basis 5 to 25 Other In line with underlying cash flows or straight-line basis 5 to 11 Goodwill is tested for impairment annually as of October 1, and whenever indicators of impairment exist. Goodwill is tested at the reporting unit level, and the Company had seven reporting units as of October 1, 2023. In the impairment test, the fair value of each reporting unit is compared with its carrying value, including goodwill. If the carrying value of a reporting unit exceeds its fair value, the difference is recognized as an impairment loss. The Company’s goodwill impairment tests for the years ended December 31, 2023 and 2022 have not resulted in any impairment charges . See Note 9 — Goodwill and Other Intangible Assets for additional information about our goodwill and other intangible assets. Pensions — The Company has multiple defined benefit pension and defined contribution plans. The net periodic cost of the Company’s defined benefit plans is measured on an actuarial basis using various methods and actuarial assumptions. The most significant assumptions are the discount rates (formulated using the granular approach to calculating service and interest cost) and the expected long-term rates of return on plan assets. Other material assumptions include rates of participant mortality, the expected long-term rates of compensation and pension increases and rates of employee termination. Gains and losses occur when actual experience differs from actuarial assumptions. If such gains or losses exceed ten percent of the greater of the market-related value of plan assets or the projected benefit obligation, the Company amortizes those gains or losses over the average remaining service period or average remaining life expectancy, as appropriate, of the plan participants. In accordance with U.S. GAAP, the Company records the funded status of its pension plans based on the projected benefit obligation on its consolidated balance sheets. Contributions to the Company’s defined contribution plans are recognized as incurred. Differences between contributions payable in the year and contributions actually paid are shown as either other assets or other liabilities in the consolidated balance sheets. See Note 13 — Retirement Benefits for additional information about our pensions. Revenue Recognition — We recognize revenue from a variety of services, with broking, consulting and outsourced administration representing our most significant offerings. All other revenue streams, which can be recognized at either a point in time or over time, are individually less significant and are grouped in Other in our revenue disaggregation disclosures in Note 4 — Revenue. These Other revenue streams represent approximately 6 % of customer contract revenue from continuing operations each year. Broking — Representing 47 % to 48 % of customer contract revenue from continuing operations each year, in our broking arrangements, we earn revenue by acting as an intermediary in the placement of effective insurance policies. Generally, we act as an agent and view our client to be the party looking to obtain insurance coverage for various risks, or an employer or sponsoring organization looking to obtain insurance coverage for its employees or members. Also, prior to the disposal of Willis Re (see Note 3— Acquisitions and Divestitures) we acted as an agent in reinsurance broking arrangements where our client was the party looking to cede risks to the reinsurance markets. Our primary performance obligation under the majority of these arrangements is to place an effective insurance or reinsurance policy, but there can also be significant post-placement obligations in certain contracts to which we need to allocate revenue. The most common of these is for claims handling or call center support. The revenue recognition method for these, after the relative fair value allocation, is described further as part of the ‘Outsourced Administration’ description below. Due to the nature of the majority of our broking arrangements, no single document constitutes the contract for ASC 606 purposes. Our services may be governed by a mixture of different types of contractual arrangements depending on the jurisdiction or type of coverage, including terms of business agreements, broker-of-record letters, statements of work or local custom and practice. This is then confirmed by the client’s acceptance of the underlying insurance contract. Prior to the policy inception date, the client has not accepted nor formally committed to perform under the arrangement (i.e. pay for the insurance coverage in place). Therefore, in the majority of broking arrangements, the contract date is the date the insurance policy incepts. However, in certain instances such as employer-sponsored Medicare broking or Affinity arrangements, where the employer or sponsoring organization is our customer, client acceptance of underlying individual policy placements is not required, and therefore the date at which we have a contract with a customer is not dependent upon placement. As noted, our primary performance obligations typically consist of only the placement of an effective insurance policy which precedes the inception date of the policy. Therefore, most of our fulfillment costs are incurred before we can recognize revenue, and are thus deferred during the pre-placement process. Where we have material post-placement services obligations, we estimate the relative fair value of the post-placement services using either the expected cost-plus-margin or the market assessment approach. Revenue from our broking services consists of commissions or fees negotiated in lieu of commissions. At times, we may receive additional income for performing these services from the insurance and reinsurance carriers’ markets, which is collectively referred to as ‘market derived income’. In situations in which our fees are not fixed but are variable, we must estimate the likely commission per policy, taking into account the likelihood of cancellation before the end of the policy term. For employer-sponsored Medicare broki |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Note 3 — Acquisitions and Divestitures The following disclosures discuss significant transactions during the three-year period ended December 31, 2023. Acquisitions The Company completed acquisitions, including acquisitions of non-controlling interests of certain subsidiaries, during the years ended December 31, 2023, 2022 and 2021 for combined cash payments of $ 56 million, $ 111 million and $ 52 million, respectively, and contingent or deferred consideration fair valued at $ 3 million, $ 28 million and $ 21 million, respectively. Divestitures Divestment of Russian Business During the first quarter of 2022, WTW announced its intention to transfer ownership of its Russian subsidiaries to local management who will operate independently in the Russian market. Due to the sanctions and prohibitions on certain types of business and activities, WTW deconsolidated its Russian entities on March 14, 2022. The transfer of its Russian subsidiaries to local management was completed on the agreed-upon terms on July 18, 2022, and the transfer was registered in Russia on July 25, 2022. The deconsolidation in the first quarter of 2022 resulted in a loss of $ 57 million, which includes an allocation of Risk & Broking goodwill, and was recognized as a loss on disposal of a business within Other income, net on our consolidated statements of comprehensive income. Further, certain Russian insurance contracts were placed historically by our U.K. brokers into the London market, the majority of which were under multi-year terms resulting in both current and non-current accounts receivables. Total net assets impaired, including accounts receivable balances related to our Russian business that are held outside of our Russian entities, were $ 81 million recorded during 2022 in Other operating expenses on our consolidated statements of comprehensive income. Willis Re Divestiture On August 13, 2021, the Company entered into a definitive security and asset purchase agreement (the ‘Willis Re SAPA’) to sell its treaty-reinsurance business (‘Willis Re’) to Arthur J. Gallagher & Co. (‘Gallagher’), a leading global provider of insurance, risk management and consulting services, for total upfront cash consideration of $ 3.25 billion plus an earnout payable in 2025 of up to $ 750 million in cash, subject to certain adjustments. The deal was subject to required regulatory approvals and clearances, as well as other customary closing conditions, and was completed on December 1, 2021 (‘Principal Closing’). Although the majority of the Willis Re businesses transferred to Gallagher at Principal Closing, the assets and liabilities of certain Willis Re businesses were not transferred to Gallagher at the time due to local territory restrictions (‘Deferred Closing’). The Deferred Closing for all but one business was completed during the second quarter of 2022, and all net earnings of the Deferred Closing businesses accumulated between the Principal Closing and Deferred Closing remained payable to Gallagher at June 30, 2022 and September 30, 2022. The Company recognized a preliminary pre-tax gain of $ 2.3 billion upon completion of the sale in 2021, and during the second quarter of 2022, WTW recognized a $ 60 million reduction to the pre-tax gain related to an updated estimate of the working capital transferred upon disposal. The Company recognized the final allocation of the proceeds and related tax expense, as well as an adjustment of certain indemnities in the third quarter of 2022. These amounts as well as the amounts payable with respect to the settled Deferred Closing businesses were remitted to Gallagher in October 2022. The remaining Deferred Closing business transferred during the fourth quarter of 2022, and all businesses have now been transferred to Gallagher. The gain is subject to tax in certain jurisdictions, mainly in the U.S., and is predominantly tax-exempt in the U.K. In connection with the transaction, the Company reclassified the results of its Willis Re operations as discontinued operations on its consolidated statements of comprehensive income and reclassified Willis Re assets and liabilities as held for sale on its consolidated balance sheets. The consolidated cash flow statements were not adjusted for the divestiture. Willis Re was previously included in the Company's former Investment, Risk and Reinsurance segment. As noted above, the results of the Deferred Closing businesses following the Principal Closing until their respective Deferred Closing dates had been included in income from discontinued operations on the consolidated statements of comprehensive income during 2022. The Company is accounting for the earnout as a gain contingency and therefore did not record any receivables upon close. Rather, the earnout will be recognized in the Company’s consolidated financial statements if and when a receipt becomes certain in 2025. A number of services are continuing under a cost reimbursement Transition Services Agreement (‘TSA’) in which WTW is providing Gallagher support including real estate leases, information technology, payroll, human resources and accounting. During the third quarter of 2023, the term for these services was extended from November 30, 2023 to May 31, 2024 and may be further extended by Gallagher, in accordance with the terms of the TSA. Fees earned under the TSA were $ 36 million and $ 45 million during the years ended December 31, 2023 and 2022, respectively, and have been recognized as a reduction to the costs incurred to service the TSA and are included in continuing operations within Other operating expenses on the consolidated statements of comprehensive income. Costs incurred to service the TSA are expected to be reduced as part of the Company’s Transformation program (see Note 6 — Restructuring Costs for a description of the program) as quickly as possible when the services are no longer required by Gallagher. The following selected financial information relates to the operations of Willis Re for the periods presented: Years ended December 31, 2022 2021 Revenue from discontinued operations $ 48 $ 721 Costs of providing services Salaries and benefits 14 350 Other operating expenses 10 59 Depreciation and amortization — 2 Transaction and transformation, net — 33 Total costs of providing services 24 444 Other income, net 5 2 Income from discontinued operations before income taxes 29 279 (Loss)/gain on disposal of Willis Re ( 65 ) 2,300 Benefit from/(provision for) income tax expense 1 ( 500 ) Net income (payable to)/receivable from Gallagher on Deferred Closing ( 5 ) 1 (Loss)/income from discontinued operations, net of tax $ ( 40 ) $ 2,080 The expense amounts reflected above represent only the direct costs attributable to the Willis Re business and exclude allocations of corporate costs that were retained following the sale. Neither the discontinued operations presented above, nor the unallocated corporate costs, reflect the impact of any cost reimbursement that has been received under the TSA. Certain amounts included in the consolidated balance sheets did not transfer to Gallagher under the terms of the Willis Re SAPA, and instead are to be settled by the Company, noting that certain fiduciary positions continued to be held under the terms of various co-broking agreements between subsidiaries of the Company and Gallagher. At December 31, 2022, the amounts of significant assets and liabilities related to the Willis Re businesses which were not transferred in the sale were $ 3.2 billion of fiduciary assets and liabilities, $ 29 million of accounts receivable and $ 73 million of other current liabilities. On May 31, 2023, the Company and Gallagher entered into a side letter to the Willis Re SAPA which became effective on June 1, 2023 and which (A) ended the co-broking agreements prospectively and which (B) transferred related fiduciary and certain non-fiduciary assets and liabilities to Gallagher at that time based on then-current estimates. These non-fiduciary amounts were finalized in the third quarter of 2023. The value of the initial transfer amounted to $ 74 million of other current liabilities less $ 26 million of accounts receivables due to the Company, totaling $ 48 million of net cash transferred to Gallagher. Additionally, total fiduciary assets and liabilities of $ 4.5 billion, including $ 868 million of fiduciary cash, were transferred to Gallagher. The total cash outflow of $ 916 million is included in cash used in investing activities in the consolidated statements of cash flows. During the third quarter of 2023, WTW and Gallagher agreed to a final settlement of all balances which resulted in a $ 5 million increase to the gain on disposal recognized at that time, and is included within Other income, net on our consolidated statements of comprehensive income. The settlement of remaining amounts owed to Gallagher totaling $ 11 million was transferred in October 2023. Miller Divestiture On March 1, 2021, the Company completed the transaction to sell its U.K.-based, majority-owned wholesale subsidiary Miller for final total consideration of GBP 623 million ($ 818 million), which includes amounts paid to the minority shareholder. The $ 356 million net tax-exempt gain on the sale was included in Other income, net in the consolidated statement of comprehensive income during the year ended December 31, 2021. Prior to disposal, Miller was included within the Company's former Investment, Risk and Reinsurance segment. Other Disposals The Company completed other disposals during the years ended December 31, 2023, 2022 and 2021 for cash proceeds of $ 89 million, $ 1 million and $ 75 million, respectively, and net gains on disposal of $ 38 million, $ 64 million and $ 26 million, respectively. There were no non-cash proceeds recognized on disposals for the years ended December 31, 2023 and 2021; for the year ended December 31, 2022, the Company recognized non-cash proceeds on disposals of $ 63 million. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 4 — Revenue Disaggregation of Revenue The Company reports revenue by segment in Note 5 — Segment Information. The following table presents revenue by service offering and segment, as well as a reconciliation to total revenue for the years ended December 31, 2023, 2022 and 2021. Along with reimbursable expenses and other, total revenue by service offering represents our revenue from customer contracts. Year Ended Broking Consulting Outsourced Other Total revenue by service offering Reimbursable expenses and other (i) Total revenue from customer contracts Interest and other income Total revenue HWC 2023 $ 1,531 $ 2,594 $ 1,078 $ 349 $ 5,552 $ 73 $ 5,625 $ 30 $ 5,655 2022 1,415 2,522 979 332 5,248 64 5,312 39 5,351 2021 1,295 2,538 1,046 352 5,231 60 5,291 37 5,328 R&B 2023 2,947 378 81 222 3,628 13 3,641 107 3,748 2022 2,745 370 75 194 3,384 11 3,395 76 3,471 2021 2,822 384 88 175 3,469 7 3,476 95 3,571 Divested Businesses 2023 — — — — — — — — — 2022 — — — — — — — — — 2021 65 6 — — 71 — 71 35 106 Corporate (i) 2023 8 14 — — 22 16 38 42 80 2022 7 10 — — 17 2 19 25 44 2021 — 8 — 4 12 ( 24 ) ( 12 ) 5 ( 7 ) Total 2023 $ 4,486 $ 2,986 $ 1,159 $ 571 $ 9,202 $ 102 $ 9,304 $ 179 $ 9,483 2022 $ 4,167 $ 2,902 $ 1,054 $ 526 $ 8,649 $ 77 $ 8,726 $ 140 $ 8,866 2021 $ 4,182 $ 2,936 $ 1,134 $ 531 $ 8,783 $ 43 $ 8,826 $ 172 $ 8,998 (i) Reimbursable expenses and other, as well as Corporate revenue, are excluded from segment revenue, but included in total revenue on the consolidated statements of comprehensive income. Amounts included in Corporate revenue may include eliminations, adjustments to reserves and impacts from hedged revenue transactions. Interest and other income is included in segment revenue and total revenue, however it has been presented separately in the above tables because it does not arise directly from contracts with customers. The significant components of interest and other income are as follows for the periods presented above: Year Ended December 31, Book-of-business settlements Interest income Other income Total 2023 2022 2021 2023 2022 2021 2023 2022 2021 2023 2022 2021 HWC $ 1 $ 19 $ 17 $ 25 $ 8 $ 2 $ 4 $ 12 $ 18 $ 30 $ 39 $ 37 R&B 25 52 82 79 25 11 3 ( 1 ) 2 107 76 95 Divested businesses — — 35 — — — — — — — — 35 Corporate — — — 41 22 ( 1 ) 1 3 6 42 25 5 Total interest and other income $ 26 $ 71 $ 134 $ 145 $ 55 $ 12 $ 8 $ 14 $ 26 $ 179 $ 140 $ 172 As a result of the cessation of the co-broking agreement, (see Note 3 — Acquisitions and Divestitures) interest income associated with fiduciary funds is now allocated more directly to the Risk and Broking segment beginning in the third quarter of 2023. These amounts were previously allocated to the Corporate segment following the disposal of Willis Re. The following table presents revenue from service offerings by the geography where our work was performed for the years ended December 31, 2023, 2022 and 2021. The reconciliation to total revenue on our consolidated statements of comprehensive income and to segment revenue is shown in the table above. Year Ended North America Europe International Total revenue by geography HWC 2023 $ 3,738 $ 1,362 $ 452 $ 5,552 2022 3,569 1,266 413 5,248 2021 3,456 1,376 399 5,231 R&B 2023 1,400 1,668 560 3,628 2022 1,328 1,527 529 3,384 2021 1,295 1,623 551 3,469 Divested Businesses 2023 — — — — 2022 — — — — 2021 17 53 1 71 Corporate 2023 8 12 2 22 2022 7 9 1 17 2021 8 3 1 12 Total 2023 $ 5,146 $ 3,042 $ 1,014 $ 9,202 2022 $ 4,904 $ 2,802 $ 943 $ 8,649 2021 $ 4,776 $ 3,055 $ 952 $ 8,783 Contract Balances The Company reports accounts receivable, net on the consolidated balance sheet, which includes billed and unbilled receivables and current contract assets. In addition to accounts receivable, net, the Company had the following non-current contract assets and deferred revenue balances at December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Billed receivables, net of allowance for doubtful accounts of $ 34 million and $ 46 $ 1,581 $ 1,464 Unbilled receivables 491 457 Current contract assets 500 466 Accounts receivable, net $ 2,572 $ 2,387 Non-current accounts receivable, net $ 19 $ 9 Non-current contract assets $ 909 $ 745 Deferred revenue $ 677 $ 646 The Company receives payments from customers based on billing schedules or terms as written in our contracts. Those balances denoted as contract assets relate to situations where we have completed some or all performance under the contract, however our right to consideration is conditional. Contract assets result most materially in our Medicare intermediary businesses. The significant increases in both current and non-current contract assets relate to our direct-to-consumer Medicare broking business. Billed and unbilled receivables are recorded when the right to consideration becomes unconditional. Deferred revenue relates to payments received in advance of performance under the contract and is recognized as revenue as (or when) we perform under the contract. Accounts receivable are stated at estimated net realizable values. The following table presents the changes in our allowance for doubtful accounts for the years ended December 31, 2023, 2022 and 2021. December 31, December 31, December 31, Balance at beginning of year $ 46 $ 45 $ 40 Additions charged to costs and expenses 6 14 16 Deductions/other movements ( 21 ) ( 20 ) ( 18 ) Foreign exchange 3 7 7 Balance at end of year $ 34 $ 46 $ 45 The changes in our allowance for doubtful accounts presented above do not include receivables that were impaired as a result of the divestment of our Russian businesses in March 2022. See Note 3 — Acquisitions and Divestitures. During the year ended December 31, 2023 , revenue of approximately $ 502 million was recognized that was reflected as deferred revenue at December 31, 2022. During the year ended December 31, 2023 , the Company recognized revenue of approximately $ 32 million related to performance obligations satisfied in a prior period. Performance Obligations The Company has contracts for which performance obligations have not been satisfied as of December 31, 2023 or have been partially satisfied as of this date. The following table shows the expected timing for the satisfaction of the remaining performance obligations. This table does not include contract renewals or variable consideration, which was excluded from the transaction prices in accordance with the guidance on constraining estimates of variable consideration. In addition, in accordance with ASC 606, the Company has elected not to disclose the remaining performance obligations when one or both of the following circumstances apply: • Performance obligations which are part of a contract that has an original expected duration of less than one year , and • Performance obligations satisfied in accordance with ASC 606-10-55-18 (‘right to invoice’). 2024 2025 2026 onward Total Revenue expected to be recognized on contracts as of $ 490 $ 371 $ 460 $ 1,321 Since most of the Company’s contracts are cancellable with less than one year’s notice and have no substantive penalty for cancellation, the majority of the Company’s remaining performance obligations as of December 31, 2023 have been excluded from the table above. Costs to obtain or fulfill a contract The Company incurs costs to obtain or fulfill contracts which it would not incur if a contract with a customer was not executed. The following table shows the categories of costs that are capitalized and deferred over the expected life of a contract. Costs to fulfill December 31, December 31, December 31, Balance at beginning of the year $ 197 $ 189 $ 191 New capitalized costs 458 421 454 Amortization ( 441 ) ( 407 ) ( 451 ) Disposals — — ( 4 ) Impairments — — ( 1 ) Foreign currency translation 4 ( 6 ) — Balance at end of the year $ 218 $ 197 $ 189 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 5 — Segment Information WTW has two reportable operating segments or business areas: • Health, Wealth & Career (‘HWC’); and • Risk & Broking (‘R&B’). WTW’s chief operating decision maker is its chief executive officer. We determined that the operational data used by the chief operating decision maker is at the segment level. Management bases strategic goals and decisions on these segments and the data presented below is used to assess the adequacy of strategic decisions and the methods of achieving these strategies and related financial results. Management evaluates the performance of its segments and allocates resources to them based on net operating income on a pre-tax basis. The Company experiences seasonal fluctuations of its revenue. Revenue is typically higher during the Company’s first and fourth quarters due primarily to the timing of broking-related activities. Under the segment structure and for internal and segment reporting, WTW segment revenue includes commissions and fees, interest and other income. U.S. GAAP revenue also includes amounts that were directly incurred on behalf of our clients and reimbursed by them (reimbursable expenses), which are removed from segment revenue. Segment operating income excludes certain costs, including (i) amortization of intangibles; (ii) restructuring costs; (iii) certain transaction and transformation expenses; and (iv) to the extent that the actual expense based upon which allocations are made differs from the forecast/budget amount, a reconciling item will be created between internally-allocated expenses and the actual expenses that we report for U.S. GAAP purposes. The following table presents segment revenue and segment operating income for our reportable segments for the years ended December 31, 2023, 2022 and 2021. Segment revenue Segment operating income Years ended December 31 Years ended December 31 2023 2022 2021 2023 2022 2021 HWC $ 5,582 $ 5,287 $ 5,268 $ 1,565 $ 1,382 $ 1,346 R&B 3,735 3,460 3,564 813 734 835 Total $ 9,317 $ 8,747 $ 8,832 $ 2,378 $ 2,116 $ 2,181 The following table presents reconciliations of the information reported by segment to the Company’s consolidated amounts reported for the years ended December 31, 2023, 2022 and 2021. Years ended December 31, 2023 2022 2021 Revenue: Total segment revenue $ 9,317 $ 8,747 $ 8,832 Divested businesses (i) — — 106 Reimbursable expenses and other 166 119 60 Revenue $ 9,483 $ 8,866 $ 8,998 Total segment operating income $ 2,378 $ 2,116 $ 2,181 Divested businesses (i) — — ( 24 ) Impairment (ii) — ( 81 ) — Amortization ( 263 ) ( 312 ) ( 369 ) Restructuring costs (iii) ( 68 ) ( 99 ) ( 26 ) Transaction and transformation, net (iv) ( 386 ) ( 181 ) 806 Unallocated, net (v) ( 296 ) ( 265 ) ( 366 ) Income from operations 1,365 1,178 2,202 Interest expense ( 235 ) ( 208 ) ( 211 ) Other income, net 149 288 701 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME $ 1,279 $ 1,258 $ 2,692 (i) Represents the revenue and income from operations of certain Investment, Risk and Reinsurance businesses which were divested in 2021 and not classified as discontinued operations. (ii) Represents the impairment related to the net assets of our Russian business that are held outside of our Russian entities (see Note 3 — Acquisitions and Divestitures for further information). (iii) See Note 6 — Restructuring Costs for the composition of costs for 2023, 2022 and 2021. (iv) In 2023 and 2022, in addition to legal fees and other transaction costs, includes primarily consulting fees and compensation costs related to the Transformation program (see Note 6 — Restructuring Costs). For the year ended December 31, 2021, includes the $ 1 billion income receipt related to the termination of, and fees related to, the then-proposed Aon combination. (v) Includes certain costs, primarily related to corporate functions which are not directly related to the segments, and certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes. The Company does not currently provide asset information by reportable segment as it does not routinely evaluate the total asset position by segment. None of the Company’s customers individually represented more than 10 % of its consolidated revenue for the years ended December 31, 2023, 2022 and 2021. Below are our revenue and tangible long-lived assets for Ireland, our country of domicile, countries with significant concentrations, and all other foreign countries as of and for the years ended as indicated: Revenue Long-Lived Assets (i) Years ended December 31, December 31, December 31, 2023 2022 2021 2023 2022 Ireland $ 118 $ 130 $ 197 $ 10 $ 11 United States 5,011 4,760 4,621 408 465 United Kingdom 1,723 1,563 1,632 512 496 Rest of World 2,631 2,413 2,548 355 332 Total Foreign Countries 9,365 8,736 8,801 1,275 1,293 $ 9,483 $ 8,866 $ 8,998 $ 1,285 $ 1,304 (i) Tangible long-lived assets consist of fixed assets and ROU assets. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Note 6 — Restructuring Costs In the fourth quarter of 2021, the Company initiated a three-year ‘Transformation program’ designed to enhance operations, optimize technology and align its real estate footprint to its new ways of working. During the fourth quarter of 2023, we revised the expected costs and savings under the program and we now expect the program to generate annual cost savings in excess of $ 425 million by the end of 2024. The program is expected to incur cumulative costs of approximately $ 995 million and capital expenditures of approximately $ 130 million, for a total investment of $ 1.125 billion . The main categories of charges will be in the following four areas: • Real estate rationalization — includes costs to align the real estate footprint to the new ways of working (hybrid work) and includes breakage fees and the impairment of ROU assets and other related leasehold assets. • Technology modernization — these charges are incurred in moving to common platforms and technologies, including migrating certain platforms and applications to the cloud. This category includes the impairment of technology assets that are duplicative or no longer revenue-producing, as well as costs for technology investments that do not qualify for capitalization. • Process optimization — these costs are incurred in the right-shoring strategy and automation of our operations, which includes optimizing resource deployment and appropriate colleague alignment. These costs include process and organizational design costs, severance and separation-related costs and temporary retention costs. • Other — other costs not included above including fees for professional services, other contract terminations not related to the above categories and supplier migration costs. Certain costs under the Transformation program are accounted for under ASC 420 and are included as restructuring costs in the consolidated statements of comprehensive income. Other costs incurred under the Transformation program are included in transaction and transformation, net and were $ 347 million and $ 136 million for the years ended December 31, 2023 and 2022; there were no such costs incurred for the year ended December 31, 2021. An analysis of total restructuring costs incurred under the Transformation program by category and by segment and corporate functions, from commencement to December 31, 2023, is as follows: HWC R&B Corporate Total 2021 Real estate rationalization $ — $ — $ 19 $ 19 Technology modernization — 5 — 5 Process optimization — — — — Other — — 2 2 2022 Real estate rationalization — — 79 79 Technology modernization — 3 16 19 Process optimization 1 — — 1 Other — — — — 2023 Real estate rationalization — — 46 46 Technology modernization 2 5 15 22 Process optimization — — — — Other — — — — Total Real estate rationalization — — 144 144 Technology modernization 2 13 31 46 Process optimization 1 — — 1 Other — — 2 2 Total $ 3 $ 13 $ 177 $ 193 A rollforward of the liability associated with cash-based charges related to restructuring costs associated with the Transformation program is as follows: Real estate rationalization Technology modernization Process optimization Other Total Balance at October 1, 2021 $ — $ — $ — $ — $ — Charges incurred — — — 2 2 Cash payments — — — ( 1 ) ( 1 ) Balance at December 31, 2021 — — — 1 1 Charges incurred 27 — 1 — 28 Cash payments ( 21 ) — ( 1 ) ( 1 ) ( 23 ) Balance at December 31, 2022 6 — — — 6 Charges incurred 22 8 — — 30 Cash payments ( 25 ) — — — ( 25 ) Balance at December 31, 2023 $ 3 $ 8 $ — $ — $ 11 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 — Income Taxes Provision for income taxes An analysis of income from continuing operations before income taxes by taxing jurisdiction is shown below: Years ended December 31, 2023 2022 2021 Ireland $ 14 $ ( 160 ) $ 673 U.S. 348 394 516 U.K. ( 93 ) 142 552 Rest of World 1,010 882 951 Total $ 1,279 $ 1,258 $ 2,692 The components of the provision for income taxes from continuing operations include: Years ended December 31, 2023 2022 2021 Current tax expense: U.S. federal taxes $ ( 106 ) $ ( 103 ) $ ( 79 ) U.S. state and local taxes ( 41 ) ( 39 ) ( 25 ) U.K. corporation tax ( 40 ) ( 13 ) ( 33 ) Other jurisdictions ( 137 ) ( 93 ) ( 303 ) Total current tax expense ( 324 ) ( 248 ) ( 440 ) Deferred tax benefit/(expense): U.S. federal taxes 20 52 ( 41 ) U.S. state and local taxes 15 ( 5 ) 3 U.K. corporation tax 63 ( 7 ) ( 65 ) Other jurisdictions 11 14 7 Total deferred tax benefit/(expense) 109 54 ( 96 ) Total provision for income taxes $ ( 215 ) $ ( 194 ) $ ( 536 ) Effective tax rate reconciliation The reported provision for income taxes differs from the amounts that would have resulted had the reported income from continuing operations before income taxes been taxed at the U.S. federal statutory rate. The principal reasons for the differences between the amounts provided and those that would have resulted from the application of the U.S. federal statutory tax rate are as follows: Years ended December 31, 2023 2022 2021 INCOME FROM CONTINUING OPERATIONS BEFORE $ 1,279 $ 1,258 $ 2,692 U.S. federal statutory income tax rate 21 % 21 % 21 % Income tax expense at U.S. federal tax rate ( 269 ) ( 264 ) ( 565 ) Adjustments to derive effective tax rate: Non-deductible expenses and dividends ( 24 ) ( 19 ) ( 15 ) Net adjustments on acquisition costs ( 1 ) ( 4 ) 13 Impact of change in rate on deferred tax balances 10 ( 1 ) ( 36 ) Effect of foreign exchange and other differences 1 28 — Changes in valuation allowances ( 2 ) 1 2 Net tax effect on intra-group items 94 84 84 Net tax effect on disposal of operations 6 1 62 Tax differentials of non-U.S. jurisdictions 8 20 ( 24 ) Impact of U.S. state and local taxes ( 26 ) ( 42 ) ( 23 ) Global Intangible Low-Taxed Income (GILTI) ( 9 ) ( 10 ) ( 4 ) Subpart F income ( 5 ) ( 6 ) ( 6 ) Base Erosion Anti-Abuse Tax (BEAT) 13 24 ( 22 ) Tax on unremitted earnings ( 12 ) ( 14 ) — Other items, net 1 8 ( 2 ) Provision for income taxes $ ( 215 ) $ ( 194 ) $ ( 536 ) The current year effective tax rate includes a $ 20 million tax benefit related to changes in state apportionment and a $ 10 million d eferred tax benefit related to the remeasurement of deferred tax assets and liabilities associated with the enactment of the Bermuda corporate income tax law. The effective tax rate for the year ended December 31, 2022 includes a $ 34 million tax benefit associated with amending the Company’s U.S. federal income tax returns for tax years 2019 and 2020, primarily related to a reduction in Base Erosion and Anti Abuse Tax (‘BEAT’), and a $ 22 million income tax benefit associated with foreign exchange remeasurement on income tax account balances. The effective tax rate for the year ended December 31, 2021 includes a $ 250 million estimated tax expense related to the income receipt related to the Aon transaction termination and a $ 40 million tax expense related to the remeasurement of deferred tax assets and liabilities associated with an increase in the U.K. tax rate from 19 % to 25 %. Willis Towers Watson plc is a non-trading holding company tax resident in Ireland where it is taxed at the statutory rate of 25 %. The provisions for income tax on operations have been reconciled above to the U.S. federal statutory tax rate of 21 % due to significant operations in the U.S. Deferred income taxes Deferred income tax assets and liabilities reflect the effect of temporary differences between the assets and liabilities recognized for financial reporting purposes and the amounts recognized for income tax purposes. We recognize deferred tax assets if it is more likely than not that a benefit will be realized. Deferred income tax assets and liabilities included in the consolidated balance sheets at December 31, 2023 and 2022 are comprised of the following: December 31, 2023 2022 Deferred tax assets: Accrued expenses not currently deductible $ 76 $ 69 Interest carryforwards 276 174 Net operating losses 44 44 Capital loss carryforwards 1 1 Accrued retirement benefits 150 85 Operating lease liabilities 120 125 Deferred compensation 93 97 Share-based compensation 25 18 Financial derivative transactions 2 4 Gross deferred tax assets 787 617 Less: valuation allowance ( 35 ) ( 28 ) Net deferred tax assets $ 752 $ 589 Deferred tax liabilities: Cost of intangible assets, net of related amortization $ 604 $ 679 Operating lease right-of-use assets 103 106 Cost of tangible assets, net of related depreciation 24 44 Prepaid retirement benefits 129 142 Accrued revenue not currently taxable 319 262 Unremitted earnings 29 36 Deferred tax liabilities $ 1,208 $ 1,269 Net deferred tax liabilities $ 456 $ 680 The net deferred income tax assets are included in Other non-current assets and the net deferred tax liabilities are included in Deferred tax liabilities in our consolidated balance sheets. December 31, 2023 2022 Balance sheet classifications: Other non-current assets $ 86 $ 68 Deferred tax liabilities 542 748 Net deferred tax liability $ 456 $ 680 At December 31, 2023, we had U.S. federal and non-U.S. net operating loss carryforwards amounting to $ 116 million of which $ 72 million can be indefinitely carried forward under local statutes. The remaining $ 44 million of net operating loss carryforwards will expire, if unused, in varying amounts from 2024 through 2043. In addition, we had U.S. state net operating loss carryforwards of $ 419 million, of which $ 21 million can be indefinitely carried forward, while the remaining $ 398 million will expire in varying amounts from 2024 to 2043 . Management believes, based on the evaluation of positive and negative evidence, including the future reversal of existing taxable temporary differences, it is more likely than not that the Company will realize the benefits of net deferred tax assets of $ 752 million, net of the valuation allowance. During 2023, the Company in creased its valuation allowance by $ 7 million, primarily related to state net operating losses and U.S. foreign tax credits . During 2022, the Company decreased its valuation allowance by $ 14 million, primarily related to certain state net operating losses. The Company determined the losses and the related valuation allowance would never be realized. During 2021, the Company decreased its valuation allowance by $ 42 million, primarily related to the disposal of underlying positions which were part of the divestment of Miller. In addition, part of the decrease reflected the utilization of the U.K. capital loss carryforward, the benefit of which was recorded in discontinued operations. At December 31, 2023 and 2022, the Company had valuation allowances of $ 35 million and $ 28 million, respectively, to reduce its deferred tax assets to their estimated realizable values. The valuation allowance at December 31, 2023 primarily relates to deferred taxes on U.S. state and non-U.S. net operating losses of $ 12 million and $ 13 million, respectively. An analysis of our valuation allowance is shown below. Years ended December 31, 2023 2022 2021 Balance at beginning of year $ 28 $ 42 $ 84 Additions charged to costs and expenses 10 8 3 Deductions ( 3 ) ( 22 ) ( 45 ) Balance at end of year $ 35 $ 28 $ 42 The movement in the 2023 valuation allowance differs from the 2023 rate reconciliation primarily due to the increase in state net operating losses and the related valuation allowance. The movement in the prior-year valuation allowance differs from the 2022 rate reconciliation primarily due to the write-down of state net operating losses and the related valuation allowance. In addition, 2022 and 2021 valuation allowances differ from the 2022 and 2021 rate reconciliations, respectively, as part of the tax benefits were allocated to discontinued operations. The Company recognizes deferred tax balances related to the undistributed earnings of subsidiaries when it expects that it will recover those undistributed earnings in a taxable manner, such as through receipt of dividends or sale of the investments. At December 31, 2023 the Co mpany has $ 17.9 billion of undistributed earnings in subsidiaries where no deferred tax has been recognized. Of this amount $ 10.3 billion relates to earnings which have been reinvested indefinitely and $ 7.6 billion relates to earnings identified as being recoverable i n an untaxable manner. It is not practicable to calculate the tax cost of repatriating the unremitted earnings which have been reinvested indefinitely. If future events, including material changes in estimates of cash, working capital and long-term investment requirements necessitate that these earnings be distributed, an additional provision for income and foreign withholding taxes, net of credits, may be necessary. Uncertain tax positions At December 31, 2023, the amount of unrecognized tax benefits associated with uncertain tax positions, determined in accordance with ASC Subtopic 740-10, excluding interest and penalties, was $ 51 million. A reconciliation of the beginning and ending balances of the liability for unrecognized tax benefits is as follows: 2023 2022 2021 Balance at beginning of year $ 47 $ 43 $ 50 Increases related to tax positions in prior years 13 16 — Decreases related to tax positions in prior years ( 9 ) ( 2 ) — Increases related to tax positions in current year 3 — — Decreases related to settlements — ( 1 ) — Decreases related to lapse in statute of limitations ( 4 ) ( 6 ) ( 6 ) Cumulative translation adjustment and other adjustments 1 ( 3 ) ( 1 ) Balance at end of year $ 51 $ 47 $ 43 The liability for unrecognized tax benefits for each of the years ended December 31, 2023, 2022 and 2021 can be reduced by $ 3 million using offsetting deferred tax benefits associated with timing differences, foreign tax credits and the federal tax benefit of state income taxes. If these offsetting deferred tax benefits were recognized, there would be a favorable impact on our effective tax rate. There are no material balances that would result in adjustments to other tax accounts. Interest and penalties related to unrecognized tax benefits are included as a component of income tax expense. At December 31, 2023, and 2022, we had cumulative accrued interest of $ 6 million and $ 5 million, respectively. Accrued penalties were immaterial in 2023 and 2022. Tax expense allocated to continuing operations for both the years ended December 31, 2023 and 2022 includes $ 1 million of interest expense. The Company believes that the outcomes which are reasonably possible within the next 12 months may result in a reduction in the liability for unrecognized tax benefits in the range of $ 1 million to $ 2 million, excluding interest and penalties. The Company and its subsidiaries file income tax returns in various tax jurisdictions in which it operates. We have ongoing state income tax examinations in certain states for tax years ranging from December 31, 2015 to December 31, 2021. The statute of limitations in certain states remains open back to the tax period ended December 31, 2015. All U.K. tax returns have been filed timely and are in the normal process of being reviewed by His Majesty’s Revenue & Customs. The Company is not currently subject to any material examinations in other jurisdictions. A summary of the tax years that remain open to tax examination in our major tax jurisdictions are as follows: Open Tax Years (fiscal year ending in) U.S. — federal 2018 and forward U.S. — various states 2015 and forward U.K. 2014 and forward Ireland 2019 and forward France 2017 and forward Germany 2008 and forward Canada - federal 2016 and forward |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Note 8 — Fixed Assets The following table reflects changes in the net carrying amount of the components of fixed assets for the years ended December 31, 2023 and 2022: Furniture, Leasehold Land and Total Cost: at January 1, 2022 $ 1,477 $ 527 $ 88 $ 2,092 Additions 174 24 — 198 Acquisitions 1 — — 1 Disposals (i) ( 129 ) ( 78 ) — ( 207 ) Foreign exchange ( 71 ) ( 21 ) ( 5 ) ( 97 ) Cost: at December 31, 2022 1,452 452 83 1,987 Additions 219 32 — 251 Disposals (i) ( 182 ) ( 34 ) — ( 216 ) Foreign exchange 38 9 2 49 Cost: at December 31, 2023 $ 1,527 $ 459 $ 85 $ 2,071 Depreciation: at January 1, 2022 $ ( 877 ) $ ( 301 ) $ ( 63 ) $ ( 1,241 ) Depreciation expense ( 211 ) ( 40 ) ( 4 ) ( 255 ) Disposals 113 57 — 170 Foreign exchange 42 12 3 57 Depreciation: at December 31, 2022 ( 933 ) ( 272 ) ( 64 ) ( 1,269 ) Depreciation expense ( 202 ) ( 37 ) ( 3 ) ( 242 ) Disposals 164 25 — 189 Foreign exchange ( 23 ) ( 5 ) ( 1 ) ( 29 ) Depreciation: at December 31, 2023 $ ( 994 ) $ ( 289 ) $ ( 68 ) $ ( 1,351 ) Net book value: At December 31, 2022 $ 519 $ 180 $ 19 $ 718 At December 31, 2023 $ 533 $ 170 $ 17 $ 720 (i) For 2023 and 2022, includes $ 17 million and $ 12 million, respectively, of furniture, equipment and software costs and $ 4 million and $ 18 million, respectively, of leasehold improvements costs which have been written off as part of technology modernization and real estate rationalization, respectively, under the Transformation program (see Note 6 – Restructuring Costs). Included within land and buildings are the following assets held under finance leases: December 31, 2023 2022 Finance leases $ 26 $ 26 Accumulated depreciation ( 23 ) ( 22 ) $ 3 $ 4 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 9 — Goodwill and Other Intangible Assets Goodwill The components of goodwill are outlined below for the years ended December 31, 2023 and 2022. HWC R&B Total Balance at December 31, 2021 Goodwill, gross $ 7,904 $ 2,771 $ 10,675 Accumulated impairment losses ( 130 ) ( 362 ) ( 492 ) Goodwill, net - December 31, 2021 7,774 2,409 10,183 Goodwill acquired — 104 104 Goodwill disposals — ( 18 ) ( 18 ) Foreign exchange ( 34 ) ( 62 ) ( 96 ) Balance at December 31, 2022 Goodwill, gross 7,870 2,795 10,665 Accumulated impairment losses ( 130 ) ( 362 ) ( 492 ) Goodwill, net - December 31, 2022 7,740 2,433 10,173 Goodwill disposals ( 21 ) — ( 21 ) Foreign exchange 17 26 43 Balance at December 31, 2023 Goodwill, gross 7,866 2,821 10,687 Accumulated impairment losses ( 130 ) ( 362 ) ( 492 ) Goodwill, net - December 31, 2023 $ 7,736 $ 2,459 $ 10,195 Other Intangible Assets The following table reflects changes in the net carrying amounts of the components of finite-lived intangible assets for the years ended December 31, 2023 and 2022: Client relationships Software Trademark and trade name Other Total Balance at December 31, 2021: Intangible assets, gross $ 3,794 $ 742 $ 1,039 $ 102 $ 5,677 Accumulated amortization ( 2,118 ) ( 701 ) ( 257 ) ( 46 ) ( 3,122 ) Intangible assets, net - December 31, 2021 1,676 41 782 56 2,555 Intangible assets acquired 67 4 1 — 72 Intangible asset disposals ( 1 ) — — ( 5 ) ( 6 ) Amortization ( 230 ) ( 31 ) ( 42 ) ( 9 ) ( 312 ) Foreign exchange ( 34 ) ( 1 ) ( 1 ) — ( 36 ) Balance at December 31, 2022: Intangible assets, gross 3,760 725 1,038 98 5,621 Accumulated amortization ( 2,282 ) ( 712 ) ( 298 ) ( 56 ) ( 3,348 ) Intangible assets, net - December 31, 2022 1,478 13 740 42 2,273 Intangible assets acquired 7 — — — 7 Intangible asset disposals — — — ( 13 ) ( 13 ) Amortization ( 204 ) ( 10 ) ( 43 ) ( 6 ) ( 263 ) Foreign exchange 12 — — — 12 Balance at December 31, 2023: Intangible assets, gross 3,807 729 1,039 63 5,638 Accumulated amortization ( 2,514 ) ( 726 ) ( 342 ) ( 40 ) ( 3,622 ) Intangible assets, net - December 31, 2023 $ 1,293 $ 3 $ 697 $ 23 $ 2,016 The weighted-average remaining life of amortizable intangible assets and liabilities at December 31, 2023 was 11.7 years. The table below reflects the future estimated amortization expense for amortizable intangible assets for the next five years and thereafter: Years ended December 31, Amortization 2024 $ 231 2025 211 2026 202 2027 198 2028 194 Thereafter 980 Total $ 2,016 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 10 — Derivative Financial Instruments We are exposed to certain foreign currency risks. Where possible, we identify exposures in our business that can be offset internally. Where no natural offset is identified, we may choose to enter into various derivative transactions. These instruments have the effect of reducing our exposure to unfavorable changes in foreign currency rates. The Company’s board of directors reviews and approves policies for managing this risk as summarized below. Additional information regarding our derivative financial instruments can be found in Note 2 — Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements, Note 12 — Fair Value Measurements and Note 18 — Accumulated Other Comprehensive Loss. Foreign Currency Risk Certain non-U.S. subsidiaries receive revenue and incur expenses in currencies other than their functional currency, and as a result, the foreign subsidiary’s functional currency revenue and/or expenses will fluctuate as the currency rates change. Additionally, the forecast Pounds sterling expenses of our London brokerage market operations may exceed their Pounds sterling revenue, and the entity with such operations may also hold significant foreign currency asset or liability positions in the consolidated balance sheets. To reduce such variability, we use foreign exchange contracts to hedge against this currency risk. These derivatives were designated as hedging instruments and at December 31, 2023 and December 31, 2022 had total notional amounts of $ 119 million and $ 134 million, respectively, with a net asset fair value of $ 2 million and a net liability fair value of $ 3 million, respectively. At December 31, 2023, the Company estimates, based on current exchange rates, there will be $ 1 million of net derivative gains on forward exchange rates reclassified from accumulated other comprehensive loss into earnings within the next twelve months as the forecast transactions affect earnings. At December 31, 2023, our longest outstanding maturity was 1.7 years. The effects of the material derivative instruments that are designated as hedging instruments on the consolidated statements of comprehensive income for the years ended December 31, 2023, 2022 and 2021 are below. Amounts pertaining to the ineffective portion of hedging instruments and those excluded from effectiveness testing were immaterial for the years ended December 31, 2023, 2022 and 2021. Gain/(loss) recognized in OCL (effective element) 2023 2022 2021 Foreign exchange contracts $ 3 $ ( 8 ) $ 5 Location of gain/(loss) reclassified from Accumulated OCL into income Gain/(loss) reclassified from Accumulated OCL into income (effective element) 2023 2022 2021 Revenue $ 1 $ 2 $ ( 3 ) Salaries and benefits ( 2 ) ( 4 ) 6 Discontinued operations — — 3 $ ( 1 ) $ ( 2 ) $ 6 The Company engages in intercompany borrowing and lending between subsidiaries, primarily through its in-house banking operations which give rise to foreign exchange exposures. The Company mitigates these risks through the use of short-term foreign currency forward and swap transactions that offset the underlying exposure created when the borrower and lender have different functional currencies. These derivatives are not generally designated as hedging instruments, and at December 31, 2023 and December 31, 2022 , we had notional amounts of $ 1.2 billion and $ 1.7 billion, respectively, with net asset fair values of $ 3 million and $ 24 million, respectively. Such derivatives typically mature within three months. The effects of derivatives that have not been designated as hedging instruments on the consolidated statements of comprehensive income for the years ended December 31, 2023, 2022 and 2021 are as follows (see Note 17 — Other Income, Net for the net foreign currency impact on the Company’s consolidated statements of comprehensive income which includes the results of the offset of underlying exposures): Location of gain/(loss) Gain/(loss) recognized in income Derivatives not designated as hedging instruments: recognized in income 2023 2022 2021 Foreign exchange contracts Other income, net $ 11 $ ( 147 ) $ — |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 11 — Debt Current debt consists of the following: December 31, 2023 2022 4.625 % senior notes due 2023 $ — $ 250 3.600 % senior notes due 2024 650 — $ 650 $ 250 Long-term debt consists of the following: December 31, 2023 2022 Revolving $ 1.5 billion credit facility $ — $ — 3.600 % senior notes due 2024 — 649 4.400 % senior notes due 2026 548 547 4.650 % senior notes due 2027 745 744 4.500 % senior notes due 2028 598 597 2.950 % senior notes due 2029 726 726 5.350 % senior notes due 2033 741 — 6.125 % senior notes due 2043 272 271 5.050 % senior notes due 2048 395 395 3.875 % senior notes due 2049 542 542 $ 4,567 $ 4,471 Guarantees The following table presents a summary of the entities that issued each note or entered into the revolving credit facility and those wholly-owned and consolidated subsidiaries of the Company that guarantee each respective note and the revolving credit facility on a joint and several basis as of December 31, 2023. Entity Revolving credit facility 3.600% due 2024 Willis Towers Watson plc Guarantor Guarantor Trinity Acquisition plc Issuer Guarantor Willis North America Inc. Guarantor Issuer Willis Netherlands Holdings B.V. Guarantor Guarantor Willis Investment UK Holdings Limited Guarantor Guarantor TA I Limited Guarantor Guarantor Willis Group Limited Guarantor Guarantor Willis Towers Watson Sub Holdings Unlimited Company Guarantor Guarantor Willis Towers Watson UK Holdings Limited Guarantor Guarantor Revolving Credit Facility $1.5 billion revolving credit facility On October 6, 2021, Trinity Acquisition plc entered into a second amended and restated revolving credit facility (the ‘new RCF’) for $ 1.5 billion that will mature on October 6, 2026 . This new RCF replaced the previous $ 1.25 billion revolving credit facility which was due to expire in March of 2022 . On June 29, 2023, Trinity Acquisition plc amended its revolving credit facility to replace the use of London Interbank Offered Rate (‘LIBOR’) with the Secured Overnight Financing Rate (‘SOFR’) in connection with its base-rate borrowings. This amendment was done in connection with the cessation of LIBOR and all other terms remain the same. Borrowing costs under the $ 1.5 billion facility differ if the borrowing is a ‘base rate’ borrowing or a ‘Eurocurrency’ borrowing, both as defined by the new RCF, and equal the sum of the relevant benchmark plus a margin based on the Company’s senior unsecured long-term debt rating: • For base rate borrowings, the benchmark rate will be the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 0.50 %, and (c) the one-month Term SOFR rate plus 1.0 %. The margin on the base rate benchmark is 0.00 % to 0.75 % depending on the Company’s senior unsecured long-term debt rating. • For Term Benchmark or Sterling Overnight Interbank Average Rate (‘SONIA’) borrowings, the rate will be the applicable Term SOFR rate or SONIA (as applicable based on the currency of the borrower) plus the Applicable SOFR Adjustment of 0.10 % plus a margin of 1.0 % to 1.75 % depending on the Company’s guaranteed unsecured long-term debt rating. The new RCF also carries a commitment fee, applicable to the unused portion, of 0.09 % to 0.25 %, which is also based on the Company’s senior unsecured long-term debt rating. $1.25 billion revolving credit facility Amounts outstanding under the previous $1.25 billion revolving credit facility bore interest at LIBOR plus a margin of 1.00 % to 1.75 %, or alternatively, the base rate plus a margin of 0.00 % to 0.75 %, based upon the Company’s guaranteed senior unsecured long-term debt rating. Senior Notes 5.350% senior notes due 2033 On May 17, 2023, the Company, together with its wholly-owned subsidiary, Willis North America Inc. as issuer, completed an offering of $ 750 million aggregate principal amount of 5.350 % senior notes due 2033 (‘2033 senior notes’). The effective interest rate of the 2033 senior notes is 5.47 %, which includes the impact of the discount upon issuance. The 2033 senior notes will mature on May 15, 2033 . Interest on the 2033 senior notes accrues from May 17, 2023 and will be paid in cash on May 15 and November 15 of each year, commencing on November 15, 2023. The net proceeds from this offering, after deducting the underwriting discount and offering expenses, were $ 741 million, of which $ 256 million was used to fully repay the $ 250 million aggregate principal amount and related accrued interest of the 4.625 % senior notes at maturity during the third quarter of 2023. The Company used the remaining net proceeds for general corporate purposes. 4.650% senior notes due 2027 On May 19, 2022, the Company, together with its wholly-owned subsidiary, Willis North America Inc. as issuer, completed an offering of $ 750 million aggregate principal amount of 4.650 % senior notes due 2027 (‘2027 senior notes’). The effective interest rate of the 2027 senior notes is 4.79 %, which includes the impact of the discount upon issuance. The 2027 senior notes will mature on June 15, 2027 . Interest on the 2027 senior notes accrues from May 19, 2022 and will be paid in cash on June 15 and December 15 of each year, commencing on December 15, 2022 . The net proceeds from this offering, after deducting the underwriting discount and estimated offering expenses, were approximately $ 744 million and were used to fully repay the € 540 million ($ 582 million on the date of repayment) aggregate principal amount of the 2.125 % Senior Notes due 2022 and related accrued interest, and for general corporate purposes. 2.950% senior notes due 2029 and 3.875% senior notes due 2049 On September 10, 2019, the Company, together with its wholly-owned subsidiary, Willis North America Inc., as issuer, completed an offering of $ 450 million aggregate principal amount of 2.950 % senior notes due 2029 (the ‘initial 2029 senior notes’) and $ 550 million aggregate principal amount of 3.875 % senior notes due 2049 (‘2049 senior notes’; collectively, the ‘2019 senior notes offering’). On May 29, 2020, the Company, together with its wholly-owned subsidiary, Willis North America Inc., as issuer, completed an offering of an additional $ 275 million aggregate principal amount of 2.950 % senior notes due 2029 (the ‘additional 2029 senior notes’). The additional 2029 senior notes will be treated as a single class with, and otherwise identical to, the initial 2029 senior notes other than with respect to the date of issuance, the issue price and the amounts paid to holders for each class of note on the first interest payment date. The effective interest rates of the initial 2029 senior notes and 2049 senior notes are 2.971 % and 3.898 %, respectively, which include the impact of the discount upon issuance. The effective interest rate of the additional 2029 senior notes is 2.697 %, which includes the impact of the premium upon issuance. Both 2029 senior notes offerings will mature on September 15, 2029 , and the 2049 senior notes will mature on September 15, 2049 . Interest on the 2019 senior notes offering has accrued from September 10, 2019 and is paid in cash on March 15 and September 15 of each year. Interest on the additional 2029 senior notes has accrued from March 15, 2020 and is paid in cash on March 15 and September 15 of each year. The net proceeds from the 2019 senior notes offering, after deducting underwriter discounts and commissions and estimated offering expenses, were approximately $ 988 million and were used to prepay a portion of the amount outstanding under the Company’s one-year term loan commitment (described below) and to repay borrowings under the Company’s $ 1.25 billion revolving credit facility. The net proceeds from the additional 2029 senior notes offering were used to repay $ 175 million of the full principal amount and related accrued interest under the term loan facility, which was set to expire in July 2020 , as well as repay $ 105 million of borrowings outstanding under the Company’s $ 1.25 billion revolving credit facility and related accrued interest. 4.500% senior notes due 2028 and 5.050% senior notes due 2048 On September 10, 2018, the Company, together with its wholly-owned subsidiary, Willis North America Inc. as issuer, completed an offering of $ 600 million of 4.500 % senior notes due 2028 (‘2028 senior notes’) and $ 400 million of 5.050 % senior notes due 2048 (‘2048 senior notes’). The effective interest rates of the 2028 senior notes and 2048 senior notes are 4.504 % and 5.073 %, respectively, which include the impact of the discount upon issuance. The 2028 senior notes will mature on September 15, 2028 and the 2048 senior notes will mature on September 15, 2048 . Interest has accrued on both the 2028 senior notes and 2048 senior notes from September 10, 2018 and is paid in cash on March 15 and September 15 of each year. The net proceeds from this offering, after deducting underwriter discounts and commissions and estimated offering expenses, were $ 989 million and were used to prepay in full $ 127 million outstanding under the Company’s term loan due December 2019 and to repay a portion of the amount outstanding under the Company’s RCF. 3.600% senior notes due 2024 On May 16, 2017, Willis North America Inc. issued $ 650 million of 3.600 % senior notes due 2024 (‘2024 senior notes’). The effective interest rate of the 2024 senior notes is 3.614 %, which includes the impact of the discount upon issuance. The 2024 senior notes will mature on May 15, 2024 , and interest has accrued on the 2024 senior notes from May 16, 2017 and is paid in cash on May 15 and November 15 of each year. The net proceeds from this offering, after deducting underwriter discounts and commissions and estimated offering expenses, were $ 644 million and were used to pay down amounts outstanding under the RCF and for general corporate purposes. 3.500% senior notes due 2021 (repaid in August 2021) and 4.400% senior notes due 2026 On March 22, 2016, Trinity Acquisition plc issued $ 450 million of 3.500 % senior notes due 2021 (‘2021 senior notes’) and $ 550 million of 4.400 % senior notes due 2026 (‘2026 senior notes’). The effective interest rate of the 2021 senior notes was 3.707 % and the effective interest rate on the 2026 senior notes is 4.572 %, which includes the impact of the discount upon issuance. The 2021 senior notes were to mature on September 15, 2021 ; the 2026 senior notes will mature on March 15, 2026 . Interest on the 2026 senior notes has accrued from March 22, 2016 and will be paid in cash on March 15 and September 15 of each year. The net proceeds from these offerings, after deducting underwriter discounts and commissions and estimated offering expenses, were $ 988 million. We used the net proceeds of these offerings to: (i) repay $ 300 million principal under the prior $ 800 million revolving credit facility and related accrued interest, which was drawn to repay our previously-issued 4.125 % senior notes on March 15, 2016; (ii) repay $ 400 million principal on another portion of the previous 1-year term loan facility and related accrued interest; and (iii) pay down a portion of the remaining principal amount outstanding under the previous revolving credit facility and related accrued interest. In August 2021, the Company called the 2021 senior notes due to mature in September 2021 and repaid the principal and interest at that time using cash on-hand. 4.625% senior notes due 2023 (repaid in August 2023) and 6.125% senior notes due 2043 On August 15, 2013, Trinity Acquisition plc issued $ 250 million of 4.625 % senior notes due 2023 (‘2023 senior notes’) and $ 275 million of 6.125 % senior notes due 2043 (‘2043 senior notes’). The effective interest rate of the 2023 senior notes was 4.696 % and the effective interest rate of the 2043 senior notes is 6.154 %, which includes the impact of the discount upon issuance. The proceeds were used to repurchase other previously-issued senior notes. The 2023 senior notes matured on August 15, 2023 ; the 2043 senior notes will mature on August 15, 2043 . In August 2023, the Company repaid in full the principal and related accrued interest associated with the 2023 senior notes using, in part, the proceeds from the issuance of the 2033 senior notes discussed above. Additional Information Regarding Fully Repaid Senior Notes and Collateralized Facility 2.125% senior notes due 2022 On May 26, 2016, Trinity Acquisition plc issued € 540 million ($ 609 million) of 2.125 % senior notes due 2022 (‘2022 senior notes’). The effective interest rate of these senior notes was 2.154 %, which included the impact of the discount upon issuance. The 2022 senior notes matured on May 26, 2022 . Interest had accrued on the notes from May 26, 2016 and was paid in cash on May 26 of each year . The net proceeds from this offering, after deducting underwriter discounts and commissions and estimated offering expenses, were € 535 million ($ 600 million). We used the net proceeds of this offering to repay a portion of the previous 1-year term loan facility, which matured in 2016, and related accrued interest. In May 2022, the 2022 senior notes were repaid in full using the net proceeds from the 2027 senior notes offering discussed above. 5.750% senior notes due 2021 In March 2011, the Company issued $ 500 million of 5.750 % senior notes due 2021. The effective interest rate of these senior notes was 5.871 %, which included the impact of the discount upon issuance. The proceeds were used to repurchase and redeem other previously-issued senior notes. In March 2021 , the senior notes matured, and the Company repaid the principal and interest using cash on-hand. Collateralized Facility As part of the acquisition of TRANZACT, the Company assumed debt of $ 91 million related to borrowings by TRANZACT whereby certain renewal commissions receivables were pledged as collateral. The Company was required to remit cash received from these pledged renewal commissions receivables on a quarterly basis to the lenders until the borrowings and related interest were repaid, after the payment of certain fees and other permitted distributions. No additional borrowings were made against this collateralized facility since the acquisition. Per the terms of the collateralized facility and specific approvals having been obtained, in November 2021 the Company repaid in full $ 32 million of principal and interest outstanding using cash on-hand, and the facility was subsequently closed. Prior to this repayment, cash received for the renewal commissions receivables had been classified as restricted cash on our consolidated balance sheet. Covenants The terms of our current financings also include certain limitations. For example, the agreements relating to the debt arrangements and credit facilities generally contain numerous operating and financial covenants, including requirements to maintain minimum ratios of consolidated EBITDA to consolidated cash interest expense and maximum levels of consolidated funded indebtedness in relation to consolidated EBITDA, in each case subject to certain adjustments. The operating restrictions and financial covenants in our current credit facilities do, and any future financing agreements may, limit our ability to finance future operations or capital needs or to engage in other business activities. At December 31, 2023 and 2022, we were in compliance with all financial covenants. Debt Maturity The following table summarizes the maturity of our debt and interest on senior notes and excludes any reduction for debt issuance costs: 2024 2025 2026 2027 2028 Thereafter Total Senior notes $ 650 $ — $ 550 $ 750 $ 600 $ 2,700 $ 5,250 Interest on senior notes 214 206 187 163 139 1,276 2,185 Revolving $ 1.5 billion credit facility — — — — — — — Total $ 864 $ 206 $ 737 $ 913 $ 739 $ 3,976 $ 7,435 Interest Expense The following table shows an analysis of the interest expense for the years ended December 31, 2023, 2022 and 2021: Years ended December 31, 2023 2022 2021 Senior notes $ 227 $ 196 $ 200 Revolving credit facility 3 3 3 Collateralized facility — — 2 Other (i) 5 9 6 Total interest expense $ 235 $ 208 $ 211 (i) Other primarily includes interest expense on finance leases and accretion on deferred and contingent consideration. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 12 — Fair Value Measurements The Company has categorized its assets and liabilities that are measured at fair value on a recurring and non-recurring basis into a three-level fair value hierarchy, based on the reliability of the inputs used to determine fair value as follows: • Level 1: refers to fair values determined based on quoted market prices in active markets for identical assets; • Level 2: refers to fair values estimated using observable market-based inputs or unobservable inputs that are corroborated by market data; and • Level 3: includes fair values estimated using unobservable inputs that are not corroborated by market data. The following methods and assumptions were used by the Company in estimating its fair value disclosure for financial instruments: • Mutual funds and exchange-traded funds are classified as Level 1 because we use quoted market prices in active markets in determining the fair value of these securities. • Commingled funds are not leveled within the fair value hierarchy as the funds are valued at the net value of shares held as reported by the manager of the funds. These funds are not exchange-traded. • Hedge funds are not leveled within the fair value hierarchy as the fair values for these investments are estimated based on the net asset values derived from the latest audited financial statements or most recent capital account statements provided by the funds’ investment manager or third-party administrator, as a practical expedient. • Market values for our derivative instruments have been used to determine the fair values of forward and option foreign exchange contracts based on estimated amounts the Company would receive or have to pay to terminate the agreements, taking into account observable information about the current foreign currency forward rates. Such financial instruments are classified as Level 2. • Contingent consideration payable is classified as Level 3, and we estimate fair value based on the likelihood and timing of achieving the relevant milestones of each arrangement, applying a probability assessment to each of the potential outcomes, which at times includes the use of a Monte Carlo simulation and discounting the probability-weighted payout. Typically, milestones are based on revenue or earnings growth for the acquired business. The following tables present our assets and liabilities measured at fair value on a recurring basis at December 31, 2023 and December 31, 2022: Fair Value Measurements on a Recurring Basis at Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities: Mutual funds/exchange traded funds (i) Prepaid and other current assets and $ 102 $ — $ — $ 102 Fiduciary assets 215 — — 215 Commingled funds (i) (ii) Other non-current assets — — — 9 Hedge funds (i) (iii) Other non-current assets — — — 8 Derivatives: Derivative financial instruments (iv) Prepaid and other current assets and $ — $ 6 $ — $ 6 Liabilities: Contingent consideration: Contingent consideration (v) (vi) Other current liabilities and $ — $ — $ 31 $ 31 Derivatives: Derivative financial instruments (iv) Other current liabilities and $ — $ 1 $ — $ 1 Fair Value Measurements on a Recurring Basis at Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities: Mutual funds/exchange traded funds (i) Prepaid and other current assets and $ 7 $ — $ — $ 7 Fiduciary assets 142 — — 142 Derivatives: Derivative financial instruments (iv) Prepaid and other current assets and $ — $ 26 $ — $ 26 Liabilities: Contingent consideration: Contingent consideration (v) (vi) Other current liabilities and $ — $ — $ 40 $ 40 Derivatives: Derivative financial instruments (iv) Other current liabilities and $ — $ 5 $ — $ 5 (i) With the exception of the funds included in fiduciary assets, the majority of these balances are held as part of deferred compensation plans with related liabilities in other current liabilities and other non-current liabilities on the consolidated balance sheets. (ii) Consists of the Towers Watson Global Equity Focus Fund, for which redemptions can occur on any business day, and require a minimum of one business day’s notice. (iii) Consists of the Towers Watson Alternative Credit Fund, for which the redemption period is generally quarterly, however requires a 50-day notice. (iv) See Note 10 — Derivative Financial Instruments for further information on our derivative investments . (v) Probability weightings are based on our knowledge of the past and planned performance of the acquired entity to which the contingent consideration applies. The fair value weighted-average discount rates used in our material contingent consideration calculations were 13.28 % and 10.26 % at December 31, 2023 and December 31, 2022, respectively. The range of these discount rates was 11.61 % - 13.80 % at December 31, 2023. Using different probability weightings and discount rates could result in an increase or decrease of the contingent consideration payable. (vi) Consideration due to be paid across multiple years until 2027. The following table summarizes the change in fair value of the Level 3 liabilities: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) December 31, 2023 Balance at December 31, 2022 $ 40 Obligations assumed — Payments ( 15 ) Realized and unrealized losses (i) 6 Foreign exchange — Balance at December 31, 2023 $ 31 (i) Realized and unrealized losses include accretion and adjustments to contingent consideration liabilities, which are included within Interest expense and Other operating expenses, respectively, on the consolidated statements of comprehensive income . There were no significant transfers to or from Level 3 during the years ended December 31, 2023 and 2022. Fair value information about financial instruments not measured at fair value The following tables present our assets and liabilities not measured at fair value on a recurring basis at December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Carrying Fair Carrying Fair Assets: Long-term note receivable $ 74 $ 70 $ 68 $ 63 Liabilities: Current debt $ 650 $ 645 $ 250 $ 248 Long-term debt $ 4,567 $ 4,359 $ 4,471 $ 4,069 The carrying value of our revolving credit facility approximates its fair value. The fair values above, which exclude accrued interest, are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or ability to dispose of the financial instruments. The fair values of our respective senior notes and long-term note receivable are considered Level 2 financial instruments as they are corroborated by observable market data. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Note 13 — Retirement Benefits Defined Benefit Plans WTW sponsors both qualified and non-qualified defined benefit pension plans throughout the world. The majority of our plan assets and obligations are in the U.S. and the U.K. We have also included disclosures related to defined benefit plans in certain other countries, including Canada, France, Germany, Switzerland and Ireland. Together, these disclosed funded and unfunded plans represent 98 % of WTW’s pension obligations and are presented herein. As part of these obligations, in the U.S., the U.K. and Canada, we have non-qualified plans that provide for the additional pension benefits that would be covered under the qualified plan in the respective country were it not for statutory maximums. The non-qualified plans are unfunded. The significant plans within each grouping are described below: United States Legacy Willis – This plan was frozen in 2009. Approximately 600 WTW employees in the United States have a frozen accrued benefit under this plan. WTW Plan – Substantially all U.S. employees are eligible to participate in this plan. Benefits are provided under a stable value pension plan design. The original stable value design came into effect on January 1, 2012. Plan participants prior to July 1, 2017 earn benefits without having to make employee contributions, and all newly-eligible employees after that date were required to contribute 2 % of pay on an after-tax basis to participate in the plan. Effective January 1, 2024, stable value benefits are earned under the same contributory formula for all eligible colleagues. To participate, plan participants are required to contribute 2 % of eligible earnings (base salary only) on an after-tax basis. United Kingdom Legacy Willis – This plan covers approximately 400 WTW employees in the U.K. The plan is now closed to new entrants. New employees in the U.K. are offered the opportunity to join a defined contribution plan. Legacy Towers Watson – Benefit accruals earned under the Legacy Watson Wyatt defined benefit plan (predominantly pension benefits) ceased on February 28, 2015, although benefits earned prior to January 1, 2008 retain a link to salary until the employee leaves the Company. Benefit accruals earned under the legacy Towers Perrin defined benefit plan (predominantly lump sum benefits) were frozen on March 31, 2008. All participants now accrue defined contribution benefits. Legacy Miller – This plan is no longer with WTW following the divestiture of its Miller business in March 2021 (see Note 3 — Acquisitions and Divestitures for further information). The plan provided retirement benefits based on members’ salaries at the point at which they ceased to accrue benefits under the scheme. Other Canada (WTW) – Participants accrue qualified and non-qualified benefits based on a career-average benefit formula. Additionally, participants can choose to make voluntary contributions to purchase enhancements to their pension. France (legacy broking business) – The mandatory retirement indemnity plan is a termination benefit which provides lump sum benefits at retirement. There is no vesting before the retirement date, and the benefit formula is determined through the collective bargaining agreement and the labor code. All employees with permanent employment contracts are eligible. Germany – The defined benefit plans are closed to new entrants and include certain legacy employee populations hired before 2011. These benefits are primarily account-based, with some long-service participants continuing to accrue benefits according to grandfathered final-average-pay formulas. Ireland (Legacy Willis) – Benefit accruals ceased effective from December 31, 2019; however accrued benefits for active employees are indexed to salary increases (to a maximum annual salary of € 150,000 ) until the member leaves the Company. A future service retirement provision is being provided on a defined contribution basis. Ireland (Legacy Towers Watson) – Benefit accruals ceased effective from May 1, 2015; however accrued benefits for active employees are indexed to salary increases (to a maximum annual salary of € 160,000 ) until the member leaves the Company. A future service retirement provision is being provided on a defined contribution basis. Switzerland (WTW) – The defined benefit plans require all employees with local employment contracts to participate. The Company provides benefits in excess of the mandatory minimum required under Swiss occupational pension law. Participants continue to accrue benefits until retirement or upon leaving the Company. Amounts Recognized in our Consolidated Financial Statements The following schedules provide information concerning the defined benefit pension plans as of and for the years ended December 31, 2023 and 2022: 2023 2022 U.S. U.K. Other U.S. U.K. Other Change in Benefit Obligation Benefit obligation, beginning of year $ 3,871 $ 2,435 $ 655 $ 5,096 $ 4,369 $ 922 Service cost 56 6 14 77 12 22 Interest cost 195 120 28 119 70 15 Employee contributions 17 — 1 16 — 1 Actuarial losses/(gains) 201 ( 32 ) 72 ( 1,186 ) ( 1,434 ) ( 221 ) Settlements ( 11 ) — ( 2 ) ( 25 ) ( 5 ) ( 2 ) Benefits paid ( 230 ) ( 116 ) ( 35 ) ( 226 ) ( 130 ) ( 30 ) Other ( 1 ) — 3 — — 2 Foreign currency changes — 145 26 — ( 447 ) ( 54 ) Benefit obligation, end of year $ 4,098 $ 2,558 $ 762 $ 3,871 $ 2,435 $ 655 Change in Plan Assets Fair value of plan assets, beginning of $ 3,823 $ 2,999 $ 580 $ 4,710 $ 5,266 $ 739 Actual return on plan assets 173 ( 3 ) 67 ( 694 ) ( 1,622 ) ( 124 ) Employer contributions 31 13 36 42 33 38 Employee contributions 17 — 1 16 — 1 Settlements ( 11 ) — ( 2 ) ( 25 ) ( 5 ) ( 2 ) Benefits paid ( 230 ) ( 116 ) ( 35 ) ( 226 ) ( 130 ) ( 30 ) Other — — 3 — — 2 Foreign currency changes — 176 23 — ( 543 ) ( 44 ) Fair value of plan assets, end of year $ 3,803 $ 3,069 $ 673 $ 3,823 $ 2,999 $ 580 Funded status at end of year $ ( 295 ) $ 511 $ ( 89 ) $ ( 48 ) $ 564 $ ( 75 ) Accumulated Benefit Obligation $ 4,098 $ 2,558 $ 733 $ 3,871 $ 2,435 $ 629 Components on the Consolidated Pension benefits assets $ — $ 516 $ 52 $ 179 $ 569 $ 57 Current liability for pension benefits $ ( 24 ) $ ( 1 ) $ ( 5 ) $ ( 26 ) $ — $ ( 5 ) Non-current liability for pension $ ( 271 ) $ ( 4 ) $ ( 136 ) $ ( 201 ) $ ( 5 ) $ ( 127 ) $ ( 295 ) $ 511 $ ( 89 ) $ ( 48 ) $ 564 $ ( 75 ) For the year ended December 31, 2023, bond yields decreased, driving decreases in the discount rates and increasing the benefit obligation for all plans although certain U.K. plans benefited from favorable changes in demographic assumptions and plan experience. The U.K. and Other plans also had unfavorable effects from foreign exchange, and the U.S. plan had a change in mortality assumptions, all of which increased their respective benefit obligations. For the year ended December 31, 2022, bond yields increased, driving an increase in the discount rates and actuarial gains for all plans. The U.K. and Other plans also had favorable effects from foreign exchange on their benefit obligations. Amounts recognized in accumulated other comprehensive loss as of December 31, 2023 and 2022 consist of: 2023 2022 U.S. U.K. Other U.S. U.K. Other Net actuarial loss $ 915 $ 1,674 $ 82 $ 597 $ 1,497 $ 36 Net prior service loss/(gain) — 19 8 — 6 9 Accumulated other comprehensive loss $ 915 $ 1,693 $ 90 $ 597 $ 1,503 $ 45 The following table presents the projected benefit obligation and fair value of plan assets for our plans that have a projected benefit obligation in excess of plan assets as of December 31, 2023 and 2022: 2023 2022 U.S. U.K. Other U.S. U.K. Other Projected benefit obligation at end of year $ 4,098 $ 5 $ 324 $ 939 $ 5 $ 278 Fair value of plan assets at end of year $ 3,803 $ — $ 182 $ 713 $ — $ 145 The following table presents the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for our plans that have an accumulated benefit obligation in excess of plan assets as of December 31, 2023 and 2022. 2023 2022 U.S. U.K. Other U.S. U.K. Other Projected benefit obligation at end of year $ 4,098 $ 5 $ 324 $ 939 $ 5 $ 238 Accumulated benefit obligation at end of year $ 4,098 $ 5 $ 309 $ 939 $ 5 $ 228 Fair value of plan assets at end of year $ 3,803 $ — $ 182 $ 713 $ — $ 106 The components of the net periodic benefit income and other amounts recognized in other comprehensive (income)/loss for the years ended December 31, 2023, 2022 and 2021 for the defined benefit pension plans are as follows: 2023 2022 2021 U.S. U.K. Other U.S. U.K. Other U.S. U.K. Other Components of net periodic Service cost $ 56 $ 6 $ 14 $ 77 $ 12 $ 22 $ 79 $ 17 $ 24 Interest cost 195 120 28 119 70 15 94 56 12 Expected return on plan ( 304 ) ( 162 ) ( 38 ) ( 331 ) ( 144 ) ( 38 ) ( 312 ) ( 170 ) ( 37 ) Amortization of unrecognized — ( 12 ) 1 — ( 12 ) 1 — ( 17 ) 1 Amortization of unrecognized 13 48 — 14 29 3 37 27 6 Settlement 1 — ( 1 ) 4 1 ( 1 ) 1 2 2 Curtailment gain — — — — — — — ( 1 ) — Other — — — — — — 1 — — Net periodic benefit (income)/cost $ ( 39 ) $ — $ 4 $ ( 117 ) $ ( 44 ) $ 2 $ ( 100 ) $ ( 86 ) $ 8 Other changes in plan assets Net actuarial (gain)/loss $ 332 $ 133 $ 43 $ ( 161 ) $ 332 $ ( 59 ) $ ( 328 ) $ 140 $ ( 61 ) Amortization of unrecognized ( 13 ) ( 48 ) — ( 14 ) ( 29 ) ( 3 ) ( 37 ) ( 27 ) ( 6 ) Prior service cost — — — — — — — — 12 Amortization of unrecognized — 12 ( 1 ) — 12 ( 1 ) — 17 ( 1 ) Settlement ( 1 ) — 1 ( 4 ) ( 1 ) 1 ( 1 ) ( 2 ) ( 2 ) Curtailment gain — — — — — — — 1 — Plan (disposal)/addition — — — — — — — ( 34 ) 8 Total recognized in other 318 97 43 ( 179 ) 314 ( 62 ) ( 366 ) 95 ( 50 ) Total recognized in net periodic $ 279 $ 97 $ 47 $ ( 296 ) $ 270 $ ( 60 ) $ ( 466 ) $ 9 $ ( 42 ) Assumptions Used in the Valuations of the Defined Benefit Pension Plans The determination of the Company’s obligations and annual expense under the plans is based on a number of assumptions that, given the longevity of the plans, are long-term in focus. A change in one or a combination of these assumptions could have a material impact on our projected benefit obligation. However, certain of these changes, such as changes in the discount rate and actuarial assumptions, are not recognized immediately in net income, but are instead recorded in other comprehensive income. The accumulated gains and losses not yet recognized in net income are amortized into net income as a component of the net periodic benefit cost/(income) generally based on the average working life expectancy or remaining life expectancy, where appropriate, of each of the plan’s active participants to the extent that the net gains or losses as of the beginning of the year exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation. The Company considers several factors prior to the start of each fiscal year when determining the appropriate annual assumptions, including economic forecasts, relevant benchmarks, historical trends, portfolio composition and peer company comparisons. These assumptions, used to determine our pension liabilities and pension expense, are reviewed annually by senior management and changed when appropriate. A discount rate will be changed annually if underlying rates have moved, whereas an expected long-term return on assets will be changed less frequently as longer-term trends in asset returns emerge or long-term target asset allocations are revised. To calculate the discount rate, we use the granular approach to determining service and interest costs. The expected rate of return assumptions for all plans are supported by an analysis of the weighted-average yield expected to be achieved based upon the anticipated makeup of the plans’ investments. Other material assumptions include rates of participant mortality, and the expected long-term rate of compensation and pension increases. The following assumptions were used in the valuations of WTW’s defined benefit pension plans. The assumptions presented in each column represent the weighted-average of rates for all plans included in the U.S., U.K., and Other groups. The assumptions used to determine net periodic benefit cost for the fiscal years ended December 31, 2023, 2022 and 2021 were as follows: Years ended December 31, 2023 2022 2021 U.S. U.K. Other U.S. U.K. Other U.S. U.K. Other Discount rate - PBO 5.4 % 5.0 % 4.3 % 2.8 % 1.9 % 2.0 % 2.5 % 1.5 % 1.7 % Discount rate - service cost 5.5 % 5.0 % 4.3 % 3.0 % 1.9 % 2.4 % 2.7 % 1.6 % 2.3 % Discount rate - interest cost on 5.3 % 4.9 % 4.3 % 2.5 % 1.8 % 2.2 % 2.0 % 1.4 % 2.0 % Discount rate - interest cost on PBO 5.2 % 4.9 % 4.3 % 2.4 % 1.8 % 1.8 % 1.8 % 1.2 % 1.3 % Expected long-term rate of return 8.2 % 5.3 % 6.5 % 7.2 % 3.0 % 5.4 % 7.2 % 3.1 % 5.4 % Rate of increase in compensation 4.3 % 3.4 % 2.4 % 4.3 % 3.4 % 2.3 % 4.3 % 3.0 % 2.3 % The following tables present the assumptions used in the valuation to determine the projected benefit obligation for the fiscal years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 U.S. U.K. Other U.S. U.K. Other Discount rate 5.1 % 4.7 % 3.8 % 5.4 % 5.0 % 4.3 % Rate of increase in compensation levels 4.3 % 3.3 % 2.4 % 4.3 % 3.4 % 2.4 % The expected return on plan assets was determined on the basis of the weighted-average of the expected future returns of the various asset classes, using the target allocations shown below. The Company’s pension plan asset target allocations as of December 31, 2023 were as follows (note the French plan is unfunded): U.S. U.K. Switzerland Canada Germany Ireland Asset Category WTW Willis Willis Towers WTW WTW WTW Willis Towers Equity securities 23 % 30 % — % 1 % 53 % 40 % 34 % 30 % 40 % Debt securities 33 % 33 % 35 % 19 % 14 % 50 % 62 % 28 % 30 % Real estate 16 % 11 % — % 1 % 28 % 5 % — % 3 % — % Other 28 % 26 % 65 % 79 % 5 % 5 % 4 % 39 % 30 % Total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % Our investment strategy is designed to generate returns that will reduce the interest rate risk inherent in each of the plan’s benefit obligations and enable the plans to meet their future obligations. The precise amount for which these obligations will be settled depends on future events, including the life expectancy of the plan participants and salary inflation. The obligations are estimated using actuarial assumptions based on the current economic environment. Each pension plan seeks to achieve total returns sufficient to meet expected future obligations when considered in conjunction with expected future contributions and prudent levels of investment risk and diversification. Each plan’s targeted asset allocation is generally determined through a plan-specific asset-liability modeling study. These comprehensive studies provide an evaluation of the projected status of asset and benefit obligation measures for each plan under a range of both positive and negative factors. The studies include a number of different asset mixes, spanning a range of diversification and potential equity exposures. In evaluating the strategic asset allocation choices, an emphasis is placed on the long-term characteristics of each individual asset class, such as expected return, volatility of returns and correlations with other asset classes within the portfolios. Consideration is also given to the proper long-term level of risk for each plan, the impact of the volatility and magnitude of plan contributions and costs, and the impact that certain actuarial techniques may have on the plan’s recognition of investment experience. We monitor investment performance and portfolio characteristics on a quarterly basis to ensure that managers are meeting expectations with respect to their investment approach. There are also various restrictions and controls placed on managers, including prohibition from investing in our stock. Fair Value of Plan Assets The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value: • Level 1: refers to fair values determined based on quoted market prices in active markets for identical assets; • Level 2: refers to fair values estimated using observable market-based inputs or unobservable inputs that are corroborated by market data; and • Level 3: includes fair values estimated using unobservable inputs that are not corroborated by market data. The fair values of our U.S. plan assets by asset category at December 31, 2023 and 2022 are as follows: December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset category: Cash $ 29 $ — $ — $ 29 $ 15 $ — $ — $ 15 Short-term securities — 85 — 85 — 89 — 89 Pooled/commingled funds — — — 2,146 — — — 1,945 Private equity — — — 665 — — — 612 Hedge funds — — — 878 — — — 1,160 Total assets $ 29 $ 85 $ — $ 3,803 $ 15 $ 89 $ — $ 3,821 The fair values of our U.K. plan assets by asset category at December 31, 2023 and 2022 are as follows: December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset category: Cash $ 204 $ — $ — $ 204 $ 125 $ — $ — $ 125 Government bonds 1,305 — — 1,305 1,267 — — 1,267 Corporate bonds — 282 — 282 — 335 — 335 Other fixed income — 377 — 377 — 189 — 189 Pooled/commingled funds — — — 1,065 — — — 1,255 Private equity — — — 14 — — — 20 Derivatives — 254 — 254 — 229 — 229 Real estate — — — 112 — — — 121 Insurance contracts — — 45 45 — — 40 40 Total assets $ 1,509 $ 913 $ 45 $ 3,658 $ 1,392 $ 753 $ 40 $ 3,581 Liability category: Repurchase agreements — 496 — 496 — 484 — 484 Derivatives — 93 — 93 — 98 — 98 Net assets $ 1,509 $ 324 $ 45 $ 3,069 $ 1,392 $ 171 $ 40 $ 2,999 The fair values of our Other plan assets by asset category at December 31, 2023 and 2022 are as follows: December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset category: Cash $ 2 $ — $ — $ 2 $ 3 $ — $ — $ 3 Pooled/commingled funds — — — 583 — — — 501 Hedge funds — — — 36 — — — 32 Insurance contracts — — 5 5 — — 5 5 Investment in multiple- — — 47 47 — — 39 39 Total assets $ 2 $ — $ 52 $ 673 $ 3 $ — $ 44 $ 580 We evaluate the need to transfer between levels based upon the nature of the financial instrument and size of the transfer relative to the total net assets of the plans. There were no significant transfers between Levels 1, 2 or 3 in the fiscal years ended December 31, 2023 and 2022. In accordance with ASC Subtopic 820-10, Fair Value Measurement and Disclosures , certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the total fair value of plan assets. Following is a description of the valuation methodologies used for investments at fair value: Short-term securities : Valued at the net value of shares held by the Company at year end as reported by the sponsor of the funds. Government bonds : Valued at the closing price reported in the active market in which the bond is traded. Corporate bonds: Valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing values on yields currently available on comparable securities of issuers with similar credit ratings. Other fixed income : Foreign and municipal bonds are valued using pricing models maximizing the use of observable inputs for similar securities. Pooled / commingled funds : Valued at the net value of shares held by the Company at year end as reported by the manager of the funds. These funds are not exchange-traded and are not reported by level in the tables above. Derivative investments : Valued at the closing level of the relevant index or security and interest accrual through the valuation date. Private equity funds, real estate funds, hedge funds: The fair values for these investments are estimated based on the net asset values derived from the latest audited financial statements or most recent capital account statements provided by the private equity fund’s investment manager or third-party administrator. Insurance contracts: The fair values are determined using model-based techniques that include option-pricing models, discounted cash flow models and similar techniques. Investment in multiple-employer pension plan: The Company sponsors a pension plan for its Swiss employees in which assets of the plan are invested in a collective fund with multiple employers through a Swiss insurance company. WTW does not have rights to, nor does it have investment authority over, the individual assets of the plan. The fair value of the plan assets is estimated based on information provided by the collective fund. Repurchase agreements: Valued at the repurchase obligation which includes an interest rate linked to the underlying fixed interest government bond portfolio. These agreements are short-term in nature (less than one year) and were entered into for the purpose of purchasing additional government bonds. The following table reconciles the net plan investments to the total fair value of the plan assets: December 31, 2023 2022 Net assets held in investments $ 7,545 $ 7,400 Net receivable for investments purchased — 2 Fair value of plan assets $ 7,545 $ 7,402 Level 3 investments As a result of the inherent limitations related to the valuations of the Level 3 investments, due to the unobservable inputs of the underlying funds, the estimated fair values may differ significantly from the values that would have been used had a market for those investments existed. The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the fiscal year ended December 31, 2023: Level 3 Beginning balance at December 31, 2022 $ 84 Purchases 2 Unrealized gain 4 Foreign exchange 7 Ending balance at December 31, 2023 $ 97 Contributions and Benefit Payments Funding is based on actuarially-determined contributions and is limited to amounts that are currently deductible for tax purposes. Since funding calculations are based on different measurements than those used for accounting purposes, pension contributions are not equal to net periodic pension costs. The following table sets forth our projected pension contributions to our qualified plans for fiscal year 2023, as well as the pension contributions to our qualified plans in fiscal years 2023 and 2022: 2024 2023 2022 U.S. $ — $ — $ 1 U.K. $ 2 $ 12 $ 32 Other $ 9 $ 24 $ 25 Expected benefit payments from our defined benefit pension plans to current plan participants, including the effects of their expected future service, as appropriate, are as follows: Benefit Payments Fiscal Year U.S. U.K. Other Total 2024 $ 287 $ 119 $ 36 $ 442 2025 287 121 32 440 2026 293 130 33 456 2027 290 135 34 459 2028 289 137 36 462 Years 2029 – 2033 1,380 744 210 2,334 $ 2,826 $ 1,386 $ 381 $ 4,593 Defined Contribution Plans We have defined contribution plans covering eligible employees in many countries. The most significant plans are in the U.S. and U.K. and are described here. We have a U.S. defined contribution plan covering all eligible employees of WTW. The plan allowed participants to make pre-tax and Roth after-tax contributions, and the Company provided a 100 % match on the first 1 % of employee contributions and a 50 % match on the next 5 % of employee contributions. Effective January 2024, the Company provides to non- Benefits Delivery & Administration (‘BDA’) participants a non-elective company contribution of 3.5 % of eligible earnings, regardless of the contributions they make to the plan. Participants employed in BDA business entities will continue under the prior formula. Employees vest in the Company match upon two years of service. All investment assets of the plan are held in a trust account administered by independent trustees. Our U.K. pension plans provide for a defined contribution component as part of a master trust. We make contributions to the plan, a portion of which represents matching contributions made by the participants up to a maximum rate. We had defined contribution plan expense for the years ended December 31, 2023, 2022 and 2021 amounting to $ 158 million, $ 148 million and $ 155 million, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 14 — Leases The following tables present amounts recorded on our consolidated balance sheets at December 31, 2023 and 2022, classified as either operating or finance leases. Operating leases are presented separately on our consolidated balance sheets. For the finance leases, the ROU assets are included in fixed assets, net, and the liabilities are classified within Other current liabilities and Other non-current liabilities. December 31, 2023 December 31, 2022 Operating Leases Finance Leases Total Operating Leases Finance Leases Total Right-of-use assets $ 565 $ 3 $ 568 $ 586 $ 4 $ 590 Current lease liabilities 125 5 130 126 4 130 Long-term lease liabilities 592 7 599 620 12 632 The following tables present amounts recorded on our consolidated statements of comprehensive income for the years ended December 31, 2023, 2022 and 2021: Years ended December 31, 2023 2022 2021 Finance lease cost: Amortization of right-of-use assets $ 1 $ 2 $ 1 Interest on lease liabilities 2 2 3 Operating lease cost 146 175 192 Short-term lease cost 1 — 1 Variable lease cost 64 71 52 Sublease income ( 13 ) ( 15 ) ( 20 ) Total lease cost, net $ 201 $ 235 $ 229 The total lease cost is recognized in different locations in our consolidated statements of comprehensive income. Amortization of the finance lease ROU assets is included in depreciation, while the interest cost component of these finance leases is included in interest expense. All other costs are included in other operating expenses, with the exception of $ 38 million, $ 57 million and $ 19 million incurred during the years ended December 31, 2023, 2022 and 2021, respectively, that were included in restructuring costs (see Note 6 — Restructuring Costs) that primarily related to the acceleration of amortization or impairment of certain abandoned ROU assets and the payment of early termination fees. There are no significant lease costs that have been included as discontinued operations in the consolidated statements of comprehensive income during the years ended December 31, 2023, 2022 and 2021. Cash paid for amounts included in the measurement of lease liabilities for the years ended December 31, 2023, 2022 and 2021, as well as its location in the consolidated statements of cash flows, is as follows: Years ended December 31, 2023 2022 2021 Cash flows from operating activities: Operating leases $ 155 $ 173 $ 186 Finance leases 2 2 3 Cash flows used in financing activities: Finance leases 4 4 3 Total lease payments $ 161 $ 179 $ 192 Non-cash additions to our operating lease ROU assets, net of modifications, were $ 85 million, $ 65 million and $ 37 million during the years ended December 31, 2023, 2022 and 2021, respectively. Our operating and finance leases have the following weighted-average terms and discount rates as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Operating Finance Operating Finance Weighted-average term (in years) 6.6 2.1 6.9 3.1 Weighted-average discount rate 3.7 % 12.7 % 3.4 % 12.7 % The maturity of our lease liabilities on an undiscounted basis, including a reconciliation to the total lease liabilities reported on the consolidated balance sheet as of December 31, 2023, is as follows: Operating Leases Finance Leases Total Leases 2024 $ 147 $ 6 $ 153 2025 135 6 141 2026 120 2 122 2027 96 — 96 2028 87 — 87 Thereafter 227 — 227 Total future lease payments 812 14 826 Interest ( 95 ) ( 2 ) ( 97 ) Total lease liabilities $ 717 $ 12 $ 729 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15 — Commitments and Contingencies Guarantees Guarantees issued by certain of WTW’s subsidiaries with respect to the senior notes and credit facilities are discussed in Note 11 — Debt. Certain of WTW’s subsidiaries in the U.S. and the U.K. have given the landlords of some leased properties occupied by the Company guarantees with respect to the repayment of the lease obligations. The operating lease obligations subject to such guarantees amounted to $ 350 million and $ 399 million at December 31, 2023 and 2022 , respectively. There were no finance lease obligations subject to such guarantees at December 31, 2023. The finance lease obligations subject to such guarantees amounted to $ 3 million at December 31, 2022. Acquisition liabilities In addition to the contingent consideration that may be payable related to our acquisitions (see Note 12 — Fair Value Measurements), we have deferred consideration of $ 3 million at December 31, 2023, which is payable until 2026 . The Company had deferred consideration of $ 6 million at December 31, 2022. Other contractual obligations For certain subsidiaries and associates, the Company has the right to purchase shares (a call option) from co-shareholders at various dates in the future. In addition, the co-shareholders of certain subsidiaries and associates have the right to sell their shares (a put option) to the Company at various dates in the future. Generally, the exercise prices of such put options and call options are formula-based (using revenue and earnings) and are designed to reflect fair value. Based on current projections of profitability and exchange rates, and assuming the put options are exercised, the potential amount payable from these put options is not expected to exceed $ 3 million. Additionally, the Company has capital commitments with Trident V Parallel Fund, LP, an investment fund managed by Stone Point Capital, Dowling Capital Partners I, LP., and PruVen Capital Partners Fund II, LP. At December 31, 2023, the Company is obligated to make capital contributions of approximately $ 27 million, collectively , to these funds. Indemnification Agreements WTW has various agreements which provide that it may be obligated to indemnify the other party to the agreement with respect to certain matters. Generally, these indemnification provisions are included in contracts arising in the normal course of business and in connection with the purchase and sale of certain businesses, including the disposal of Willis Re. It is not possible to predict the maximum potential amount of future payments that may become due under these indemnification agreements because of the conditional nature of the Company’s obligations and the unique facts of each particular agreement. However, we do not believe that any potential liability that may arise from such indemnity provisions is probable or material. Legal Proceedings In the ordinary course of business, the Company is subject to various actual and potential claims, lawsuits and other proceedings. Some of the claims, lawsuits and other proceedings seek damages in amounts which could, if assessed, be significant. The Company also receives subpoenas in the ordinary course of business and, from time to time, receives requests for information in connection with governmental investigations. Errors and omissions claims, lawsuits, and other proceedings arising in the ordinary course of business are covered in part by professional indemnity or other appropriate insurance. The terms of this insurance vary by policy year. Regarding self-insured risks, the Company has established provisions which are believed to be adequate in light of current information and legal advice, or, in certain cases, where a range of loss exists, the Company accrues the minimum amount in the range if no amount within the range is a better estimate than any other amount. The Company adjusts such provisions from time to time according to developments. See Note 16 — Supplementary Information for Certain Balance Sheet Accounts for the amounts accrued at December 31, 2023 and 2022 in the consolidated balance sheets. On the basis of current information, the Company does not expect that the actual claims, lawsuits and other proceedings to which it is subject, or potential claims, lawsuits, and other proceedings relating to matters of which it is aware, will ultimately have a material adverse effect on its financial condition, results of operations or liquidity. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation and disputes with insurance companies, it is possible that an adverse outcome or settlement in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in a particular quarterly or annual period. The Company provides for contingent liabilities based on ASC 450, Contingencies, when it is determined that a liability, inclusive of defense costs, is probable and reasonably estimable. The contingent liabilities recorded are primarily developed actuarially. Litigation is subject to many factors which are difficult to predict so there can be no assurance that in the event of a material unfavorable result in one or more claims, we will not incur material costs. |
Supplementary Information for C
Supplementary Information for Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplementary Information for Certain Balance Sheet Accounts | Note 16 — Supplementary Information for Certain Balance Sheet Accounts Additional details of specific balance sheet accounts are detailed below. Prepaid and other current assets consist of the following: December 31, December 31, Prepayments and accrued income $ 123 $ 132 Deferred contract costs 76 71 Derivatives and investments 4 43 Deferred compensation plan assets 16 16 Corporate income and other taxes 87 89 Acquired renewal commissions receivable 5 9 Other current assets 53 54 Total prepaid and other current assets $ 364 $ 414 Other non-current assets consist of the following: December 31, December 31, Prepayments and accrued income $ 9 $ 10 Deferred contract costs 142 126 Deferred compensation plan assets 89 74 Deferred tax assets 86 68 Accounts receivable, net 19 9 Acquired renewal commissions receivable 23 29 Long-term note receivable 74 68 Other investments 88 90 Insurance recovery receivables 85 80 Non-current contract assets 909 745 Other non-current assets 49 58 Total other non-current assets $ 1,573 $ 1,357 Deferred revenue and accrued expenses consist of the following: December 31, December 31, Accounts payable, accrued liabilities and deferred income $ 1,073 $ 975 Accrued discretionary and incentive compensation 795 708 Accrued vacation 150 142 Other employee-related liabilities 86 90 Total deferred revenue and accrued expenses $ 2,104 $ 1,915 Other current liabilities consist of the following: December 31, December 31, Dividends payable $ 103 $ 102 Income taxes payable 50 83 Interest payable 50 49 Deferred compensation plan liabilities 16 14 Contingent and deferred consideration on acquisitions 7 17 Accrued retirement benefits 31 32 Payroll and other benefits-related liabilities (i) 166 157 Other taxes payable (i) 78 65 Derivatives 1 4 Third-party commissions 106 124 Other current liabilities (i) 70 69 Total other current liabilities $ 678 $ 716 (i) Certain amounts have been reclassified from the prior year to conform to the current year presentation. Provision for liabilities consists of the following: December 31, December 31, Claims, lawsuits and other proceedings $ 306 $ 296 Other provisions 59 61 Total provision for liabilities $ 365 $ 357 Other non-current liabilities consist of the following: December 31, December 31, Deferred and long-term compensation plan liabilities (i) $ 97 $ 113 Contingent and deferred consideration on acquisitions 27 29 Liabilities for uncertain tax positions 42 40 Finance leases 7 12 Other non-current liabilities (i) 65 27 Total other non-current liabilities $ 238 $ 221 (i) Certain amounts have been reclassified from the prior year to conform to the current year presentation. |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Note 17 — Other Income, Net Other income, net consists of the following: Years ended December 31, 2023 2022 2021 Gain on disposal of operations (i) $ 43 $ 7 $ 379 Net periodic pension and postretirement benefit credits 109 272 303 Interest in earnings of associates and other investments 3 4 8 Foreign exchange (loss)/gain (ii) ( 11 ) — 8 Other 5 5 3 Other income, net $ 149 $ 288 $ 701 (i) For the year ended December 31, 2022, includes a $ 24 million non-cash revaluation gain related to an acquisition completed in stages. (ii) Includes the offsetting effects of the Company's foreign currency hedging program. See Note 10 — Derivative Financial Instruments. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 18 — Accumulated Other Comprehensive Loss The components of other comprehensive (loss)/income are as follows: December 31, 2023 December 31, 2022 December 31, 2021 Before Tax Net of Before Tax Net of Before Tax Net of Other comprehensive (loss)/income: Foreign currency translation $ 173 $ — $ 173 $ ( 499 ) $ — $ ( 499 ) $ ( 87 ) $ — $ ( 87 ) Defined pension and post-retirement benefits ( 546 ) 138 ( 408 ) 87 ( 22 ) 65 343 ( 83 ) 260 Derivative instruments 3 ( 1 ) 2 ( 6 ) 4 ( 2 ) ( 1 ) 3 2 Other comprehensive (loss)/income ( 370 ) 137 ( 233 ) ( 418 ) ( 18 ) ( 436 ) 255 ( 80 ) 175 Less: Other comprehensive (income)/loss ( 2 ) — ( 2 ) 1 — 1 ( 2 ) — ( 2 ) Other comprehensive (loss)/income attributable $ ( 372 ) $ 137 $ ( 235 ) $ ( 417 ) $ ( 18 ) $ ( 435 ) $ 253 $ ( 80 ) $ 173 Changes in accumulated other comprehensive loss, net of non-controlling interests and net of tax are provided in the following table. This table excludes amounts attributable to non-controlling interests, which are not material for further disclosure. Foreign currency Derivative (i) Defined pension (ii) Total Balance, January 1, 2021 $ ( 400 ) $ 9 $ ( 1,968 ) $ ( 2,359 ) Other comprehensive (loss)/income before reclassifications ( 133 ) 9 191 67 Loss/(gain) reclassified from accumulated other 12 ) (iii) 44 ( 7 ) 69 106 Net other comprehensive (loss)/income ( 89 ) 2 260 173 Balance, December 31, 2021 $ ( 489 ) $ 11 $ ( 1,708 ) $ ( 2,186 ) Other comprehensive (loss)/income before reclassifications ( 498 ) ( 3 ) 41 ( 460 ) Loss reclassified from accumulated other 9 ) — 1 24 25 Net other comprehensive (loss)/income ( 498 ) ( 2 ) 65 ( 435 ) Balance, December 31, 2022 $ ( 987 ) $ 9 $ ( 1,643 ) $ ( 2,621 ) Other comprehensive income/(loss) before reclassifications 171 2 ( 444 ) ( 271 ) Loss reclassified from accumulated other 11 ) — — 36 36 Net other comprehensive income/(loss) 171 2 ( 408 ) ( 235 ) Balance, December 31, 2023 $ ( 816 ) $ 11 $ ( 2,051 ) $ ( 2,856 ) (i) Reclassification adjustments from accumulated other comprehensive loss related to derivative instruments are included in Revenue and Salaries and benefits in the accompanying consolidated statements of comprehensive income. See Note 10 — Derivative Financial Instruments for additional details regarding the reclassification adjustments for the derivative settlements. (ii) Reclassification adjustments from accumulated other comprehensive loss are included in the computation of net periodic pension cost (see Note 13 — Retirement Benefits). These components are included in Other income, net in the accompanying consolidated statements of comprehensive income. (iii) Includes reclassifications in 2021 of $ 44 million and $ 31 million of foreign currency translation and defined pension and post-retirement benefit costs, respectively, attributable to the gain on disposal of our Miller business (see Note 3 — Acquisitions and Divestitures). The net gain on disposal is included in Other income, net in the accompanying consolidated statements of comprehensive income. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | Note 19 — Share-based Compensation Amounts related to discontinued operations in the tables and other disclosures below were not material during the years ended December 31, 2023, 2022 and 2021. Plan Summaries On December 31, 2023, the Company had a number of open share-based compensation plans, which provide for the granting of time-based and performance-based options, time-based and performance-based restricted stock units, and various other share-based grants to employees. All of the Company’s share-based compensation plans under which any options, restricted stock units (‘RSUs’) or other share-based grants are outstanding as of December 31, 2023 are described below. During 2023, approximately 265,000 shares were issued under employee stock compensation plans and non-qualified retirement plans, which is net of shares withheld for taxes and option costs. Additionally, due to retirement eligibility provisions, 93,000 shares vested during the current year which will be issued during a future year. See below for further detail on the options exercised and RSUs vested in 2023. The compensation cost that has been recognized for these plans for the years ended December 31, 2023, 2022 and 2021 was $ 125 million, $ 99 million and $ 101 million, respectively. Of the $ 125 million and $ 99 million of compensation cost for the years ended December 31, 2023 and 2022, respectively, $ 31 million and $ 27 million, respectively, were recognized within transaction and transformation, net on the consolidated statements of comprehensive income. The total income tax benefits recognized in the consolidated statements of comprehensive income for share-based compensation arrangements for the years ended December 31, 2023, 2022, and 2021 were $ 21 million, $ 18 million and $ 17 million, respectively. 2012 Equity Incentive Plan This plan, established on April 25, 2012 and amended and restated on June 10, 2016, provides for the granting of incentive stock options, time-based or performance-based non-statutory stock options, share appreciation rights, restricted shares, time-based or performance-based RSUs, performance-based awards and other share-based grants or any combination thereof to employees, officers, non-employee directors and consultants of the Company (‘2012 Plan’). The board of directors also adopted a sub-plan under the 2012 Plan to provide an employee sharesave scheme in the U.K. There were 3,867,028 shares remaining available for grant under this plan as of December 31, 2023. The 2012 Plan shall continue in effect until terminated by the board of directors, except that no incentive stock option may be granted under the 2012 Plan after April 21, 2026 or after its expiration. That termination will not affect the validity of any grants outstanding at that date. Options There were no options granted during the years ended December 31, 2023, 2022 and 2021. Award Activity Classification of options as time-based or performance-based is dependent on the original terms of the award. During the year ended December 31, 2023, the remaining 15,000 time-based stock options were exercised with a weighted-average exercise price of $ 117.36 , and had an immaterial intrinsic value, leaving no options outstanding at December 31, 2023. The total intrinsic values of time-based options exercised during the years ended December 31, 2022 and 2021 were $ 1 million and $ 7 million, respectively. All remaining performance-based options outstanding were exercised during 2022. The total intrinsic values of performance-based options exercised during the years ended December 31, 2022 and 2021 were $ 9 million and $ 23 million, respectively. Cash received from option exercises under all share-based payment arrangements for the year ended December 31, 2023 was immaterial, and for the years ended December 31, 2022 and 2021 was $ 7 million and $ 10 million, respectively. The actual tax benefit recognized for the tax deductions from option exercises of the share-based payment arrangements totaled $ 6 million, $ 11 million and $ 8 million for the years ended December 31, 2023, 2022 and 2021, respectively. Equity-settled RSUs Valuation Assumptions The grant date fair value of each time-based RSU is equal to the grant date stock price. Performance-based RSUs granted during the years ended December 31, 2023 and December 31, 2022, contain only non-market-based performance targets, and the grant date fair value of these awards is equal to the grant date stock price. Because performance-based RSUs granted during the year ended December 31, 2021 contain market-based performance targets, the fair value is estimated on the grant date using a Monte-Carlo simulation that uses the assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company’s shares. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant. The assumptions noted in the table below represent the weighted-average of each assumption for each grant during the year. Year ended 2021 Expected volatility 29.1 % Expected dividend yield — % Expected life (years) 2.9 Risk-free interest rate 0.3 % During the year ended December 31, 2023, certain performance-based RSU awards were modified to either better align the payout percentages for the broad-based population with the awards granted to the executive officers, or to reflect the impact of the divestment of our Russian business (see Note 3 — Acquisitions and Divestitures for additional information) . In total, 464 grantees benefited from the modifications. Incremental compensation cost of $ 14 million is being recognized over the remaining service periods, $ 6 million of which is included within transaction and transformation, net on the consolidated statements of comprehensive income. Award Activity A summary of time-based and performance-based RSU activity under the plans at December 31, 2023, and changes during the year then ended, is presented below: Shares Weighted- Time-based RSUs Balance as of December 31, 2022 412 $ 237.23 Granted 156 $ 231.33 Vested ( 122 ) $ 233.20 Forfeited ( 24 ) $ 239.67 Balance as of December 31, 2023 422 $ 236.08 Performance-based RSUs Balance as of December 31, 2022 588 $ 266.39 Granted 231 $ 232.98 Vested ( 273 ) $ 259.54 Forfeited ( 29 ) $ 267.36 Balance as of December 31, 2023 517 $ 255.01 Time-based RSUs approximating 122,000 , 35,000 and 15,000 vested during the years ended December 31, 2023, 2022 and 2021, respectively, with average share prices at time of vesting of $ 221.26 , $ 202.80 and $ 250.83 , respectively. At December 31, 2023 there was $ 41 million of total unrecognized compensation cost related to the time-based RSU plan; that cost is expected to be recognized over a weighted-average period of 1.5 years. Performance-based RSUs approximating 273,000 , 32,000 and 133,000 vested during the years ended December 31, 2023, 2022 and 2021, respectively, with average share prices at time of vesting of $ 234.44 , $ 197.55 and $ 224.79 , respectively. At December 31, 2023 there was $ 74 million of total unrecognized compensation cost related to the performance-based RSU plan; that cost is expected to be recognized over a weighted-average period of 1.9 years. The actual tax benefits recognized for the tax deductions from RSUs that vested totaled $ 9 million, $ 23 million and $ 12 million for the years ended December 31, 2023, 2022 and 2021, respectively. The amounts reflected above include awards which will be cash-settled due to local requirements. These awards are classified as liabilities in our consolidated balance sheets and are not material. Phantom RSUs During the year ended December 31, 2022, cash payments totaling $ 32 million were made related to phantom stock units. Phantom stock units are cash-settled awards with final payout based on the performance of the Company’s shares. There was no remaining liability or unearned compensation related to phantom stock as of December 31, 2022, and the Company did no t grant phantom stock during 2023, 2022 and 2021. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 20 — Earnings Per Share Basic and diluted earnings per share from continuing operations attributable to WTW and discontinued operations, net of tax are calculated by dividing net income from continuing operations attributable to WTW and discontinued operations, net of tax, respectively, by the average number of ordinary shares outstanding during each period. The computation of diluted earnings per share reflects the potential dilution that could occur if dilutive securities and other contracts to issue shares were exercised or converted into shares or resulted in the issuance of shares that then shared in the net income of the Company. See Note 19 — Share-based Compensation for a summary of our outstanding options and RSUs. Basic and diluted earnings per share are as follows: Years ended December 31, 2023 2022 2021 Income from continuing operations $ 1,064 $ 1,064 $ 2,156 Less: income attributable to non-controlling interests ( 9 ) ( 15 ) ( 14 ) Income from continuing operations attributable to WTW $ 1,055 $ 1,049 $ 2,142 (Loss)/income from discontinued operations, net of tax $ — $ ( 40 ) $ 2,080 Basic weighted-average number of shares outstanding 105 112 128 Dilutive effect of potentially issuable shares 1 — 1 Diluted weighted-average number of shares outstanding 106 112 129 Basic earnings per share from continuing operations attributable to WTW $ 10.01 $ 9.36 $ 16.68 Dilutive effect of potentially issuable shares ( 0.06 ) ( 0.02 ) ( 0.05 ) Diluted earnings per share from continuing operations attributable to WTW $ 9.95 $ 9.34 $ 16.63 Basic (loss)/earnings per share from discontinued operations, net of tax $ — $ ( 0.36 ) $ 16.20 Dilutive effect of potentially issuable shares — — ( 0.05 ) Diluted (loss)/earnings per share from discontinued operations, net of tax $ — $ ( 0.36 ) $ 16.15 There were no anti-dilutive options for the years ended December 31, 2023, 2022 and 2021. For the year ended December 31, 2023, anti-dilutive RSUs were immaterial; for the years ended December 31, 2022 and 2021, 0.2 million and 0.3 million RSUs, respectively, were not included in the computation of the dilutive effect of potentially issuable shares because their effect was anti-dilutive. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Note 21 — Supplemental Disclosures of Cash Flow Information Supplemental disclosures regarding cash flow information and non-cash investing and financing activities are as follows: As of and for the years ended December 31, 2023 2022 2021 Supplemental disclosures of cash flow information: Cash and cash equivalents $ 1,424 $ 1,262 $ 4,486 Fiduciary funds (included in fiduciary assets) 2,368 3,459 3,203 Cash and cash equivalents and fiduciary funds (included in current assets held — — 2 Total cash, cash equivalents and restricted cash $ 3,792 $ 4,721 $ 7,691 Increase/(decrease) in cash, cash equivalents and other restricted cash $ 163 $ ( 3,177 ) $ 2,425 (Decrease)/increase in fiduciary funds ( 1,103 ) 371 ( 908 ) Total $ ( 940 ) $ ( 2,806 ) $ 1,517 Cash payments for income taxes, net $ 348 $ 428 $ 570 Cash payments for interest $ 223 $ 201 $ 212 Cash acquired $ — $ 30 $ 5 Supplemental disclosures of non-cash investing and financing activities: Non-cash consideration received $ — $ 63 $ — Fair value of deferred and contingent consideration related to acquisitions $ 3 $ 28 $ 21 |
Basis of Presentation, Signif_2
Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying audited consolidated financial statements of WTW and our subsidiaries are presented in accordance with the rules and regulations of the SEC for annual reports on Form 10-K and are prepared in accordance with U.S. GAAP. All intercompany accounts and transactions have been eliminated in consolidation. |
Principles of Consolidation | Principles of Consolidation — The accompanying consolidated financial statements include the accounts of WTW and those of our majority-owned and controlled subsidiaries. We determine whether we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (‘VIE’). Variable interest entities are entities that lack one or more of the characteristics of a voting interest entity and therefore require a different approach in determining which party involved with the VIE should consolidate the entity. With a VIE, either the entity does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties, or the equity holders, as a group, do not have the power to direct the activities that most significantly impact its financial performance, the obligation to absorb expected losses of the entity, or the right to receive the expected residual returns of the entity. The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. Voting interest entities are entities that have sufficient equity and provide equity investors voting rights that give them the power to make significant decisions related to the entity’s operations. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. Accordingly, we consolidate our voting interest entity investments in which we hold, directly or indirectly, more than 50 % of the voting rights. |
Use of Estimates | Use of Estimates — These consolidated financial statements conform to U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Our estimates, judgments and assumptions are continually evaluated based on available information and experience. Because of the use of estimates inherent in the financial reporting process, actual results could differ from those estimates. Estimates are used when accounting for revenue recognition and related costs, the selection of useful lives of fixed and intangible assets, impairment testing, valuation of billed and unbilled receivables from clients, discretionary compensation, income taxes, pension assumptions, incurred but not reported claims, legal reserves and goodwill and intangible assets. |
Going Concern | Going Concern — Management evaluates at each annual and interim period whether there are conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. Management’s evaluation is based on relevant conditions and events that are known and reasonably knowable at the date that the consolidated financial statements are issued. Management has concluded that there are no conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date of these financial statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The carrying values of our cash, cash equivalents and restricted cash, accounts receivable, short-term investments, accrued expenses and revolving lines of credit approximate their fair values because of the short maturity and liquidity of those instruments. The fair value of our senior notes and note receivable are considered Level 2 financial instruments as they are corroborated by observable market data. See Note 12 — Fair Value Measurements for additional information about our measurements of fair value. The Company has categorized its assets and liabilities that are measured at fair value on a recurring and non-recurring basis into a three-level fair value hierarchy, based on the reliability of the inputs used to determine fair value as follows: • Level 1: refers to fair values determined based on quoted market prices in active markets for identical assets; • Level 2: refers to fair values estimated using observable market-based inputs or unobservable inputs that are corroborated by market data; and • Level 3: includes fair values estimated using unobservable inputs that are not corroborated by market data. The following methods and assumptions were used by the Company in estimating its fair value disclosure for financial instruments: • Mutual funds and exchange-traded funds are classified as Level 1 because we use quoted market prices in active markets in determining the fair value of these securities. • Commingled funds are not leveled within the fair value hierarchy as the funds are valued at the net value of shares held as reported by the manager of the funds. These funds are not exchange-traded. • Hedge funds are not leveled within the fair value hierarchy as the fair values for these investments are estimated based on the net asset values derived from the latest audited financial statements or most recent capital account statements provided by the funds’ investment manager or third-party administrator, as a practical expedient. • Market values for our derivative instruments have been used to determine the fair values of forward and option foreign exchange contracts based on estimated amounts the Company would receive or have to pay to terminate the agreements, taking into account observable information about the current foreign currency forward rates. Such financial instruments are classified as Level 2. • Contingent consideration payable is classified as Level 3, and we estimate fair value based on the likelihood and timing of achieving the relevant milestones of each arrangement, applying a probability assessment to each of the potential outcomes, which at times includes the use of a Monte Carlo simulation and discounting the probability-weighted payout. Typically, milestones are based on revenue or earnings growth for the acquired business. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents primarily consist of time deposits with original maturities of three months or less. In certain of the countries in which we conduct business, we are subject to capital adequacy requirements. Most significantly, Willis Limited, our U.K. brokerage subsidiary regulated by the Financial Conduct Authority, is currently required to maintain $ 105 million in unencumbered and available financial resources, of which at least $ 66 million must be in cash, for regulatory purposes. Term deposits and certificates of deposits with original maturities greater than three months are considered to be short-term investments and are included in Prepaid and other current assets. Additionally, see Note 21 — Supplemental Disclosures of Cash Flow Information for a reconciliation of the cash, cash equivalents and restricted cash as presented on our consolidated balance sheets and the consolidated statements of cash flows. |
Fiduciary Assets and Liabilities | Fiduciary Assets and Liabilities — The Company collects premiums from insureds and, after deducting commissions, remits the premiums to the respective insurers. The Company also collects claims or refunds from insurers on behalf of insureds. Certain of our health and welfare benefits administration outsourcing agreements require us to hold funds on behalf of clients to pay obligations on their behalf or for plan participants to pay for medical costs (‘benefit funds’). Benefit funds held in cash and cash equivalents are part of fiduciary funds. In some instances, plan participants direct us to invest these benefit funds on their behalf (‘benefit funds investments’). Each of these transactions is reported on our consolidated balance sheets as assets and corresponding liabilities unless such balances are due to or from the same party and a right of offset exists, in which case the balances are recorded net. Fiduciary assets on the consolidated balance sheets are comprised of fiduciary funds, benefit funds investments and fiduciary receivables: Fiduciary funds – These amounts are restricted cash and cash equivalents held for unremitted insurance premiums and claims and benefit funds not invested, and are recorded within fiduciary assets on the consolidated balance sheets. Fiduciary funds are generally required to be kept in certain regulated bank accounts subject to guidelines which emphasize capital preservation and liquidity. Such funds are not available to service the Company’s debt or for other corporate purposes. Notwithstanding the legal relationships with insureds and insurers and excluding earnings on benefit funds, the Company is entitled to retain investment income earned on fiduciary funds in accordance with industry custom and practice and, in some cases, as supported by agreements with insureds. The period for which the Company holds such funds in its broking capacity is dependent upon the date the insured remits the payment of the premium to the Company, or the date the Company receives a refund from the insurer, and the date the Company is required to forward such payments to the insurer or insured, respectively. For the benefit funds, cash and cash equivalents are held until the funds are directed by plan participants to either be invested in mutual funds or paid out on their behalf. Fiduciary funds are included in the beginning and ending balances of cash, cash equivalents and restricted cash in the consolidated statements of cash flows. See Note 21 — Supplemental Disclosures of Cash Flow Information for a reconciliation of the fiduciary funds as presented on our consolidated balance sheets and the consolidated statements of cash flows. Benefit funds investments – Benefit funds investments can be invested in open-ended mutual funds at the direction of the participant. Such funds are not available to service the Company’s debt or for other corporate purposes and earnings accrue to the participant. Fiduciary receivables – Uncollected premiums from insureds, uncollected claims or refunds from insurers and unremitted benefits funds are recorded as fiduciary assets on the consolidated balance sheets. In certain instances, the Company advances premiums, refunds or claims to insurance underwriters or insureds prior to collection. Such advances are made from fiduciary funds and are reflected in the consolidated balance sheets as fiduciary assets. Fiduciary liabilities on the consolidated balance sheets represent the obligations to remit all fiduciary assets as required under the terms of the various arrangements. Fiduciary receivables and liabilities for which cash has not been collected are equal and offsetting and have not been presented in the consolidated statements of cash flows. |
Accounts Receivable | Accounts Receivable — Accounts receivable includes both billed and unbilled receivables and is stated at estimated net realizable values. Provision for billed receivables is recorded, when necessary, in an amount considered by management to be sufficient to meet probable future losses related to uncollectible accounts. Accrued and unbilled receivables are stated at net realizable value which includes an allowance for accrued and unbillable amounts. See Note 4 — Revenue for additional information about our accounts receivable. |
Acquired Accounts Receivable | Acquired Accounts Receivable — As part of the acquisition accounting for the TRANZACT business in 2019, the acquired accounts receivable arising from direct-to-consumer Medicare broking sales were present-valued at the acquisition date in accordance with ASC 805, Business Combinations (‘ASC 805’). Cash collections for these receivables are expected to occur over a period of several years. Due to the provisions of ASC 606, Revenue From Contracts With Customers (‘ASC 606’), these receivables are not discounted for a significant financing component when initially recognized. Following the acquisition, the acquired renewal commissions receivables have been accounted for prospectively using the cost-recovery method in which future cash receipts will initially be applied against the acquisition date fair value until the value reaches zero. Any cash received in excess of the fair value determined at acquisition is recorded to earnings when it is received. The adjusted values of these acquired renewal commissions receivables are included in Prepaid and other current assets or Other non-current assets, as appropriate, on the consolidated balance sheets. |
Income Taxes | Income Taxes — The Company recognizes deferred tax assets and liabilities for the estimated future tax consequences of events attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating and capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized for continuing operations in the consolidated statement of comprehensive income in the period in which the change is enacted. Deferred tax assets are reduced through the establishment of a valuation allowance at such time as, based on available evidence, it is more likely than not that the deferred tax assets will not be realized. The Company adjusts valuation allowances to measure deferred tax assets at the amounts considered realizable in future periods, which is assessed at each balance sheet date. In making such determinations, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operating results. We place more reliance on evidence that is objectively verifiable. Positions taken in the Company’s tax returns may be subject to challenge by the taxing authorities upon examination. The Company recognizes the benefits of uncertain tax positions in the financial statements when it is more likely than not that a position will be sustained on the basis of the technical merits of the position assuming the tax authorities have full knowledge of the position and all relevant facts. Recognition also occurs upon either the lapse of the relevant statute of limitations or when positions are effectively settled. The benefit recognized is the largest amount of tax benefit that is greater than 50 percent likely to be realized on settlement with the tax authority. The Company adjusts its recognition of uncertain tax benefits in the period in which new information is available impacting either the recognition or measurement of its uncertain tax positions. Such adjustments are reflected as increases or decreases to income taxes in the period in which they are determined. The Company recognizes interest and penalties relating to unrecognized tax benefits within income taxes. See Note 7 — Income Taxes for additional information regarding the Company’s income taxes. |
Foreign Currency | Foreign Currency — Transactions in currencies other than the functional currency of the entity are recorded at the rates of exchange prevailing at the date of the transaction. Monetary assets and liabilities in currencies other than the functional currency are translated at the rates of exchange prevailing at the balance sheet date and the related transaction gains and losses are reported as income or expense in the consolidated statements of comprehensive income. Certain intercompany loans are determined to be of a long-term investment nature. The Company records transaction gains and losses from re-measuring such loans as other comprehensive income in the consolidated statements of comprehensive income. Upon consolidation, the results of operations of subsidiaries and associates whose functional currency is other than the U.S. dollar are translated into U.S. dollars at the average exchange rates, and assets and liabilities are translated at year-end exchange rates. Translation adjustments are presented as a separate component of other comprehensive income in the financial statements and are included in net income only upon sale or liquidation of the underlying foreign subsidiary or associated company. |
Derivatives | Derivatives — The Company uses derivative financial instruments to alter the risk profile of an existing underlying exposure. Forward and option foreign currency exchange contracts are used to manage currency exposures arising from future income and expenses and to offset balance sheet exposures in currencies other than the functional currency of an entity. We do not hold any derivatives for trading purposes. The fair values of derivative contracts are recorded in other assets and other liabilities in the consolidated balance sheets. The effective portions of changes in the fair value of derivatives that qualify for hedge accounting as cash flow hedges are recorded in other comprehensive income. Amounts are reclassified from other comprehensive income into earnings when the hedged exposure affects earnings. If the derivative is designated and qualifies as an effective hedge, the changes in the fair value of the derivative and of the hedged item associated with the hedged risk are both recognized in earnings. The amount of hedge ineffectiveness recognized in earnings is based on the extent to which an offset between the fair value of the derivative and hedged item is not achieved. Changes in the fair value of derivatives that do not qualify for hedge accounting, together with any hedge ineffectiveness on those that do qualify, are recorded in Other income, net or interest expense as appropriate. The Company evaluates whether its contracts include clauses or conditions which would be required to be separately accounted for at fair value as embedded derivatives. See Note 10 — Derivative Financial Instruments for additional information about the Company’s derivatives. |
Commitments, Contingencies and Accrued Liabilities | Commitments, Contingencies and Provisions for Liabilities — The Company establishes provisions against various actual and potential claims, lawsuits and other proceedings relating principally to alleged errors and omissions in the ordinary course of business. Such provisions cover claims that have been reported but not paid and also unasserted claims and related legal fees. These provisions are established based on actuarial estimates together with individual case reviews and are believed to be adequate in light of current information and legal advice. In certain cases, where a range of loss exists, we accrue the minimum amount in the range if no amount within the range is a better estimate than any other amount. To the extent such losses can be recovered under the Company’s insurance programs, estimated recoveries are recorded when losses for insured events are recognized and the recoveries are likely to be realized. Significant management judgment is required to estimate the amounts of such unasserted claims and the related insurance recoveries. The Company analyzes its litigation exposure based on available information, including consultation with outside counsel handling the defense of these matters, to assess its potential liability. These contingent liabilities are not discounted. See Note 15 — Commitments and Contingencies and Note 16 — Supplementary Information for Certain Balance Sheet Accounts for additional information about our commitments, contingencies and provisions for liabilities. |
Share-Based Compensation | Share-Based Compensation — The Company has equity-based compensation plans that provide for grants of restricted stock units and stock options to employees and non-employee directors of the Company. Additionally, the Company has cash-settled share-based compensation plans that provide for grants to employees. The Company expenses equity-based compensation, which is included in Salaries and benefits in the consolidated statements of comprehensive income, primarily on a straight-line basis over the requisite service period. The significant assumptions underlying our expense calculations include the fair value of the award on the date of grant, the estimated achievement of any performance targets and estimated forfeiture rates. The awards under equity-based compensation are classified as equity and are included as a component of equity on the Company’s consolidated balance sheets, as the ultimate payment of such awards will not be achieved through use of the Company’s cash or other assets. For the cash-settled share-based compensation, the Company recognizes a liability for the fair-value of the awards as of each reporting date. The liability for these awards is included within Other current liabilities or Other non-current liabilities in the consolidated balance sheets depending on when the amounts are payable. Expense is recognized over the service period, and as the liability is remeasured at the end of each reporting period, changes in fair value are recognized as compensation cost within Salaries and benefits in the consolidated statements of comprehensive income. The significant assumptions underlying our expense calculations include the estimated achievement of any performance targets and estimated forfeiture rates. See Note 19 — Share-based Compensation for additional information about the Company’s share-based compensation. |
Fixed Assets | Fixed Assets — Fixed assets are stated at cost less accumulated depreciation. Expenditures for improvements are capitalized; repairs and maintenance are charged to expense as incurred. Depreciation is computed primarily using the straight-line method based on the estimated useful lives of assets. Depreciation on internally-developed software is amortized over the estimated useful life of the asset ranging from 3 to 10 years . Buildings include assets held under finance leases and are depreciated over the lesser of 50 years, the asset lives or the lease terms, as appropriate. Depreciation on leasehold improvements is calculated over the lesser of the useful lives of the assets or the remaining lease terms. Depreciation on furniture and equipment is calculated based on a range of 3 to 10 years . Land is not depreciated. Long-lived assets are tested for recoverability whenever events or changes in circumstance indicate that their carrying amounts may not be recoverable. An impairment loss is recognized if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. Recoverability is determined based on the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. Long-lived assets and certain identifiable intangible assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. See Note 8 — Fixed Assets for additional information about our fixed assets. |
Leases | Leases — As an advisory, broking and solutions company providing services to clients in more than 140 countries, we enter into lease agreements from time to time, primarily for the use of real estate for our office space. We determine if an arrangement is a lease at the inception of the contract, and the nature of our operations is such that it is generally clear whether an arrangement contains a lease and what underlying asset is being leased. The majority of the leases into which we enter are operating leases. Upon entering into leases, we obtain the right to control the use of an identified space for a lease term and recognize these right-of-use (‘ROU’) assets on our consolidated balance sheets with corresponding lease liabilities reflecting our obligation to make the related lease payments. ROU assets are amortized over the term of the lease. Our real estate leases are generally long-term in nature, with terms that currently range from three to 11 years . Our most significant lease supports our London market operations with a lease term through 2032. Our real estate leases often contain options to renew the lease, either through exercise of the option or through automatic renewal. Additionally, certain leases have options to cancel the lease with appropriate notice to the landlord prior to the end of the stated lease term. As we enter into new leases, we consider these options as we assess lease terms in our recognized ROU assets and lease liabilities. If we are reasonably certain to exercise an option to renew a lease, we include this period in our lease term. To the extent that we have the option to cancel a lease, we recognize our ROU assets and lease liabilities using the term that would result from using this earlier date. If a significant penalty is required to cancel the lease at an earlier date, we assess our lease term as ending at the point when no significant penalty would be due. In addition to payments for previously-agreed base rent, many of our lease agreements are subject to variable and unknown future payments, typically in the form of common area maintenance charges (a non-lease component as defined by ASC 842, Leases (‘ASC 842’)) or real estate taxes. These variable payments are excluded from our lease liabilities and ROU assets, and instead are recognized as lease expense within Other operating expenses on the consolidated statement of comprehensive income as the amounts are incurred. To the extent that we have agreed to fixed charges for common area maintenance or other non-lease components, or our base rent increases by an index or rate (most commonly an inflation rate), these amounts are included in the measurement of our lease liabilities and ROU assets. We have elected the practical expedient under ASC 842 which allows the lease and non-lease components to be combined in our measurement of lease liabilities and ROU assets. From time to time we may enter into subleases if we are unable to cancel or fully occupy a space and are able to find an appropriate subtenant. However, entering subleases is not a primary objective of our business operations and these arrangements do not currently represent a material amount of cash flows. We are required to use judgment in the determination of the incremental borrowing rates to calculate the present values of our future lease payments. Since the majority of our debt is publicly traded, our real estate function is centralized, and our treasury function is centralized and generally prohibits our subsidiaries from borrowing externally, we have determined it appropriate to use the Company’s consolidated unsecured borrowing rate, and we adjust for collateralization in accordance with ASC 842. Using the resulting interest rate curves from publicly traded debt at this collateralized borrowing rate, we select the interest rate at lease inception by reference to the lease term and lease currency. Approximately 90 % of our leases are denominated in U.S. dollars, Pounds sterling or Euros. Our leases generally do not subject us to restrictive covenants and contain no residual value guarantees. See Note 14 — Leases for additional information about our operating leases. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets — In applying the acquisition method of accounting for business combinations, amounts assigned to identifiable assets and liabilities acquired were based on estimated fair values as of the date of acquisition, with the remainder recorded as goodwill. Intangible assets are initially valued at fair value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over their estimated useful lives and are reviewed for impairment if indicators of impairment arise. Intangible assets with indefinite lives are tested for impairment annually as of October 1, and whenever indicators of impairment exist. The fair values of intangible assets are compared with their carrying values, and an impairment loss would be recognized for the amount by which a carrying amount exceeds its fair value. Acquired intangible assets held at December 31, 2023 are being amortized on the basis noted and over the following expected life: Amortization basis Expected life (years) Client relationships In line with underlying cash flows 3 to 21 Software In line with underlying cash flows or straight-line basis 5 to 9 Trademark and trade name Straight-line basis 5 to 25 Other In line with underlying cash flows or straight-line basis 5 to 11 Goodwill is tested for impairment annually as of October 1, and whenever indicators of impairment exist. Goodwill is tested at the reporting unit level, and the Company had seven reporting units as of October 1, 2023. In the impairment test, the fair value of each reporting unit is compared with its carrying value, including goodwill. If the carrying value of a reporting unit exceeds its fair value, the difference is recognized as an impairment loss. The Company’s goodwill impairment tests for the years ended December 31, 2023 and 2022 have not resulted in any impairment charges . See Note 9 — Goodwill and Other Intangible Assets for additional information about our goodwill and other intangible assets. |
Pensions | Pensions — The Company has multiple defined benefit pension and defined contribution plans. The net periodic cost of the Company’s defined benefit plans is measured on an actuarial basis using various methods and actuarial assumptions. The most significant assumptions are the discount rates (formulated using the granular approach to calculating service and interest cost) and the expected long-term rates of return on plan assets. Other material assumptions include rates of participant mortality, the expected long-term rates of compensation and pension increases and rates of employee termination. Gains and losses occur when actual experience differs from actuarial assumptions. If such gains or losses exceed ten percent of the greater of the market-related value of plan assets or the projected benefit obligation, the Company amortizes those gains or losses over the average remaining service period or average remaining life expectancy, as appropriate, of the plan participants. In accordance with U.S. GAAP, the Company records the funded status of its pension plans based on the projected benefit obligation on its consolidated balance sheets. Contributions to the Company’s defined contribution plans are recognized as incurred. Differences between contributions payable in the year and contributions actually paid are shown as either other assets or other liabilities in the consolidated balance sheets. See Note 13 — Retirement Benefits for additional information about our pensions. |
Revenue Recognition | Revenue Recognition — We recognize revenue from a variety of services, with broking, consulting and outsourced administration representing our most significant offerings. All other revenue streams, which can be recognized at either a point in time or over time, are individually less significant and are grouped in Other in our revenue disaggregation disclosures in Note 4 — Revenue. These Other revenue streams represent approximately 6 % of customer contract revenue from continuing operations each year. Broking — Representing 47 % to 48 % of customer contract revenue from continuing operations each year, in our broking arrangements, we earn revenue by acting as an intermediary in the placement of effective insurance policies. Generally, we act as an agent and view our client to be the party looking to obtain insurance coverage for various risks, or an employer or sponsoring organization looking to obtain insurance coverage for its employees or members. Also, prior to the disposal of Willis Re (see Note 3— Acquisitions and Divestitures) we acted as an agent in reinsurance broking arrangements where our client was the party looking to cede risks to the reinsurance markets. Our primary performance obligation under the majority of these arrangements is to place an effective insurance or reinsurance policy, but there can also be significant post-placement obligations in certain contracts to which we need to allocate revenue. The most common of these is for claims handling or call center support. The revenue recognition method for these, after the relative fair value allocation, is described further as part of the ‘Outsourced Administration’ description below. Due to the nature of the majority of our broking arrangements, no single document constitutes the contract for ASC 606 purposes. Our services may be governed by a mixture of different types of contractual arrangements depending on the jurisdiction or type of coverage, including terms of business agreements, broker-of-record letters, statements of work or local custom and practice. This is then confirmed by the client’s acceptance of the underlying insurance contract. Prior to the policy inception date, the client has not accepted nor formally committed to perform under the arrangement (i.e. pay for the insurance coverage in place). Therefore, in the majority of broking arrangements, the contract date is the date the insurance policy incepts. However, in certain instances such as employer-sponsored Medicare broking or Affinity arrangements, where the employer or sponsoring organization is our customer, client acceptance of underlying individual policy placements is not required, and therefore the date at which we have a contract with a customer is not dependent upon placement. As noted, our primary performance obligations typically consist of only the placement of an effective insurance policy which precedes the inception date of the policy. Therefore, most of our fulfillment costs are incurred before we can recognize revenue, and are thus deferred during the pre-placement process. Where we have material post-placement services obligations, we estimate the relative fair value of the post-placement services using either the expected cost-plus-margin or the market assessment approach. Revenue from our broking services consists of commissions or fees negotiated in lieu of commissions. At times, we may receive additional income for performing these services from the insurance and reinsurance carriers’ markets, which is collectively referred to as ‘market derived income’. In situations in which our fees are not fixed but are variable, we must estimate the likely commission per policy, taking into account the likelihood of cancellation before the end of the policy term. For employer-sponsored Medicare broking, Affinity arrangements and historically for proportional treaty reinsurance broking, the commissions to which we will be entitled can vary based on the underlying individual insurance policies that are placed. For employer-sponsored Medicare broking and proportional treaty reinsurance broking in particular, we base the estimates of transaction prices on supportable evidence from an analysis of past transactions, and only include amounts that are probable of being received or not refunded (referred to as applying ‘constraint’ under ASC 606). This is an area requiring significant judgment and results in us estimating a transaction price that may be significantly lower than the ultimate amount of commissions we may collect. The transaction price is then adjusted over time as we receive confirmation of our remuneration through receipt of treaty statements, or as other information becomes available. We recognize revenue for most broking arrangements as of a point in time at the later of the policy inception date or when the policy placement is complete, because this is viewed as the date when control is transferred to the client. For employer-sponsored Medicare broking, we recognize revenue over time, as we stand ready under our agreements to place retiree Medicare coverage. For this type of broking arrangement, we recognize the majority of our placement revenue in the fourth quarter of the calendar year when most of the placement or renewal activity occurs. We also have a direct-to-consumer Medicare broking offering. The contractual arrangements in this offering differ from our employer-sponsored Medicare broking offering described above. The governing contracts in our direct-to-consumer Medicare broking offering are the contractual arrangements with insurance carriers, for whom we act as an agent, that provide compensation in return for issued policies. Once an application is submitted to a carrier, our obligation is complete, and we have no ongoing fulfillment obligations. We receive compensation from carriers in the form of commissions, administrative fees and marketing fees in the first year, and depending on the type of policy issued, we may receive renewal commissions for up to 25 years, provided the policies are renewed for such periods of time. Because our obligation is complete upon application submission to the carrier, we recognize revenue at that date, which includes both compensation due to us in the first year as well as an estimate of the total renewal commissions that will be received over the lifetime of the policy. This variable consideration estimate requires significant judgment, and will vary based on product type, estimated commission rates, the expected lives of the respective policies and other factors. The Company has applied an actuarial model to account for these uncertainties, which is updated periodically based on actual experience, and includes an element of ‘constraint’ as defined by ASC 606 such that no significant reversal is expected to occur in the future. Actual results will differ from these estimates. The timing of renewal payments in our direct-to-consumer Medicare broking offering is reflective of regulatory restrictions and insurance carriers’ protection for cancellations and varies based on policy holder decisions that are outside of the control of both the Company and the insurance carriers. As such, the estimate of these renewal commissions receivables has not been discounted to reflect a significant financing component. Consulting — We earn revenue for advisory and consulting work that may be structured as different types of service offerings, including annual recurring projects, projects of a short duration or stand-ready obligations. Collectively, our consulting arrangements represent 32 % to 33 % of customer contract revenue from continuing operations each year. We have engagement letters with our clients that specify the terms and conditions upon which the engagements are based. These terms and conditions can only be changed upon agreement by both parties. In assessing our performance obligations, our consulting work is typically highly integrated, with the various promised services representing inputs of the combined overall output. We view these arrangements as representing a single performance obligation. To the extent we do not integrate our services, as is the case with unrelated services that may be sourced from different areas of our business, we consider these separate performance obligations. Fee terms can be in the form of fixed-fees (including fixed-fees offset by commissions), time-and-expense fees, commissions, per-participant fees, or fees based on assets under management. Payment is typically due on a monthly basis as we perform under the contract, and we are entitled to be reimbursed for work performed to date in the event of termination. The majority of our revenue from these consulting engagements is recognized over time, either because our clients are simultaneously receiving and consuming the benefits of our services, or because we have an enforceable right to payment for performance rendered to date. Additionally, from time to time, we may be entitled to an additional fee based on achieving certain performance criteria. To the extent that we cannot estimate with reasonable assurance the likelihood that we will achieve the performance target, we will ‘constrain’ this portion of the transaction price and recognize it when or as the uncertainty is resolved. We use different progress measures to determine our revenue depending on the nature of the engagement: • Annual recurring projects and projects of short duration. These projects are typically straightforward and highly predictable in nature with either time-and-expense or fixed fee terms. Time-and-expense fees are recognized as hours or expenses are incurred using the ‘right to invoice’ practical expedient allowed under ASC 606. For fixed-fee arrangements, to the extent estimates can be made of the remaining work required under the arrangement, revenue is based upon the proportional performance method, using the value of labor hours spent to date compared to the estimated total value of labor hours for the entire engagement. We believe that cost represents a faithful depiction of the transfer of value because the completion of these performance obligations is based upon the professional services of employees of differing experience levels and thereby costs. It is appropriate that satisfaction of these performance obligations considers both the number of hours incurred by each employee and the value of each labor hour worked (as opposed to simply the hours worked). • Stand-ready obligations. These projects consist of repetitive monthly or quarterly services performed consistently each period. As none of the activities provided under these services are performed at specified times and quantities, but at the discretion of each customer, our obligation is to stand ready to perform these services on an as-needed basis. These arrangements represent a ‘series’ performance obligation in accordance with ASC 606. Each time increment (i.e., each month or quarter) of standing ready to provide the overall services is distinct and the customer obtains value from each period of service independent of the other periods of service. Where we recognize revenue on a proportional performance basis, the amount we recognize is affected by a number of factors that can change the estimated amount of work required to complete the project such as the staffing on the engagement and/or the level of client participation. Our periodic engagement evaluations require us to make judgments and estimates regarding the overall profitability and stage of project completion that, in turn, affect how we recognize revenue. We recognize a loss on an engagement when estimated revenue to be received for that engagement is less than the total estimated costs associated with the engagement. Losses are recognized in the period in which the loss becomes probable and the amount of the loss is reasonably estimable. Outsourced Administration — We provide customized benefits outsourcing and co-sourcing solutions services in relation to the administration of defined benefit, defined contribution, and health and welfare plans. These plans are sponsored by our clients to provide benefits to their active or retired employees. Additionally, these services include operating call centers and may include providing access to, and managing, a variety of consumer-directed savings accounts. The operation of call centers and consumer-directed accounts can be provisioned as part of an ongoing administration or solutions service, or separately as part of a broking arrangement. The products and services available to all clients are the same, but the selections by a client can vary and portray customized products and services based on the customer’s specific needs. Our services often include the use of proprietary systems that are configured for each of our clients’ needs. In total, our outsourced administration services represent 12 % to 13 % of customer contract revenue from continuing operations each year. These contracts typically consist of an implementation phase and an ongoing administration phase: • Implementation phase. Work performed during the implementation phase is considered a set-up activity because it does not transfer a service to the customer, and therefore costs are deferred during this phase of the arrangement. Since these arrangements are longer term in nature and subject to more changes in scope as the project progresses, our contracts generally provide that if the client terminates a contract, we are entitled to an additional payment for services performed through the termination date designed to recover our up-front costs of implementation. • Ongoing administration phase. The ongoing administration phase includes a variety of plan administration services, system hosting and support services. More specifically, these services include data management, calculations, reporting, fulfillment/communications, compliance services, call center support, and in our health and welfare arrangements, annual onboarding and enrollment support. While there are a variety of activities performed, the overall nature of the obligation is to provide an integrated outsourcing solution to the customer. The arrangement represents a stand-ready obligation to perform these activities on an as-needed basis. The customer obtains value from each period of service, and each time increment (i.e., each month, or each benefits cycle in our health and welfare arrangements) is distinct and substantially the same. Accordingly, the ongoing administration services represent a ‘series’ in accordance with ASC 606 and are deemed one performance obligation. We have engagement letters with our clients that specify the terms and conditions upon which the engagements are based. These terms and conditions can only be changed upon agreement by both parties. Fees for these arrangements can be fixed, per-participant-per-month, or in the case of call center services, provided in conjunction with our broking services, with an allocation based on commissions. Our fees are not typically payable until the commencement of the ongoing administration phase. However, in our health and welfare arrangements, we begin transferring services to our customers approximately four months prior to payments being due as part of our annual onboarding and enrollment work. Although our per-participant-per-month and commission-based fees are considered variable, they are typically predictable in nature, and therefore we generally do not ‘constrain’ any portion of our transaction price estimates. Once fees become payable, payment is typically due on a monthly basis as we perform under the contract, and we are entitled to be reimbursed for work performed to date in the event of termination. Revenue is recognized over time as the services are performed because our clients are simultaneously receiving and consuming the benefits of our services. For our health and welfare arrangements where each benefits cycle represents a time increment under the series guidance, revenue is recognized based on proportional performance. We use an input measure (value of labor hours worked) as the measure of progress. Given that the service is stand-ready in nature, it can be difficult to predict the remaining obligation under the benefits cycle. Therefore, the input measure is based on the historical effort expended each month, which is measured as labor cost. This results in slightly more revenue being recognized during periods of annual onboarding since we are performing both our normal monthly services and our annual services during this portion of the benefits cycle. For all other outsourced administration arrangements where a month represents our time increment under the series guidance, we allocate transaction price to the month we are performing our services. Therefore, the amount recognized each month is the variable consideration related to that month plus the fixed monthly or annual fee. The fixed monthly or annual fee is recognized on a straight-line basis. Revenue recognition for these types of arrangements is therefore more consistent throughout the year. Reimbursed expenses — Client reimbursable expenses, including those relating to travel, other out-of-pocket expenses and any third-party costs, are included in revenue, and an equivalent amount of reimbursable expenses is included in other operating expenses as a cost of revenue as incurred. Reimbursed expenses represented approximately 1 % or less of customer contract revenue from continuing operations each year. Taxes collected from customers and remitted to government authorities are recorded net and are excluded from revenue. Interest income — Interest income is recognized as earned. Other income — Other income includes gains on disposal of intangible assets, which primarily arise from settlements through enforcing non-compete agreements in the event of losing accounts through producer defection or the disposal of books of business. Cost to obtain or fulfill contracts — Costs to obtain customers include commissions for brokers under specific agreements that would not be incurred without a contract being signed and executed. The Company has elected to apply the ASC 606 ‘practical expedient’ which allows us to expense these costs as incurred if the amortization period related to the resulting asset would be one year or less. The Company has no significant instances of contracts that would be amortized for a period greater than a year, and therefore has no contract costs capitalized for these arrangements. Costs to fulfill include costs incurred by the Company that are expected to be recovered within the expected contract period. The costs associated with our system implementation activities and consulting contracts are recorded through time entry. For our broking business, the Company must estimate the fulfillment costs incurred during the pre-placement of the broking contracts. These judgments include: • which activities in the pre-placement process should be eligible for capitalization; • the amount of time and effort expended on those pre-placement activities; • the amount of payroll and related costs eligible for capitalization; and, • the monthly or quarterly timing of underlying insurance and reinsurance policy inception dates. We amortize costs to fulfill over the period we receive the related benefits. For broking pre-placement costs, this is typically less than a year. In our system implementation and consulting arrangements, we include the likelihood of contract renewals in our estimate of the amortization period, resulting in most costs being amortized for a greater length of time than the initial contract term. |
Transaction and Transformation, Net | Transaction and transformation, net — Transaction and transformation, net consists of two components, transaction-related costs and termination income receipts related to acquisitions and disposals, and transformation expenses associated with our Transformation program (see Note 6 — Restructuring Costs). Transaction costs primarily include legal and other professional fees as well as other costs that are directly attributable to an acquisition or an in-process but not yet completed divestiture. Costs related to divestitures incurred during the period of the divestment are not included in transaction costs, but are instead included in the gain or loss on disposal of a business within Other income, net on the consolidated statements of comprehensive income. Additionally, on July 26, 2021, WTW and Aon plc (‘Aon’) announced they had terminated the business combination agreement between the two companies previously entered into in March 2020. Per the terms of the agreement and as part of this termination, Aon agreed to pay WTW $ 1 billion in connection with such termination, which was received by WTW on July 27, 2021. The $ 1 billion income receipt was included within Transaction and transformation, net in the consolidated statement of comprehensive income during the year ended December 31, 2021. Transformation costs are costs incurred under the Transformation program but are not eligible to be classified as restructuring costs under ASC 420, Exit or Disposal Cost Obligation (‘ASC 420’) . These costs are not expected to continue beyond the defined period of the program. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which is intended to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. Among other amendments, this ASU creates a ‘significant expense principle,’ and adds required disclosures of significant expenses for each reportable segment, as well as certain other disclosures to help investors understand how the chief operating decision maker (‘CODM’) evaluates segment expenses and operating results. In addition, this ASU requires for interim periods all disclosures about a reportable segment’s profit or loss and assets under ASC 280, Segment Reporting , that had previously only been provided annually (e.g., interest revenue and expense, depreciation and amortization expense). The annual requirements of this ASU became effective for the Company on January 1, 2024, at which time we adopted it, and will include the new disclosures in our Annual Report on Form 10-K for the year ended December 31, 2024. New interim disclosures are required for fiscal years beginning January 1, 2025. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which is intended to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information within the income tax rate reconciliation and income taxes paid disclosures. It also includes certain other amendments intended to improve the effectiveness of income tax disclosures. Specifically, this ASU requires a tabular income tax rate reconciliation using both percentages and amounts disaggregated into specific categories with certain reconciling items at or above 5% of the statutory tax, further disaggregated by its nature and/or jurisdiction. Additionally, income taxes paid will be required to be presented by federal, state, local and foreign jurisdictions, including amounts paid to individual jurisdictions representing 5% or more of the total income taxes paid. This ASU becomes effective for the Company on January 1, 2025, with early adoption permitted. The guidance is applied prospectively, with the option for retrospective application. The Company does not plan to early-adopt this ASU and is assessing the expected impact on its consolidated financial statements. |
Other Legislation | Other Legislation Inflation Reduction Act The Inflation Reduction Act (the ‘IRA’) was enacted into law on August 16, 2022 and certain portions of the IRA became effective January 1, 2023. The IRA introduced, among other provisions, a share repurchase excise tax and a new Corporate Alternative Minimum Tax (‘CAMT’) which imposes a 15% tax on the adjusted financial statement income of ‘applicable corporations’. Since becoming effective, the IRA has not had a material impact on the Company's consolidated financial statements. Pillar Two E.U. member states formally adopted the E.U.’s Pillar Two Directive, which introduces a global corporate minimum tax of 15% for certain large multinational companies. For the rules to take effect, E.U. member states were required to enact domestic legislation by the end of 2023 to be effective January 1, 2024. While we do not anticipate that this legislation will have a material impact on our tax provision or effective tax rate, we continue to monitor evolving tax legislation in the jurisdictions in which we operate. |
Basis of Presentation, Signif_3
Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Acquired Intangible Assets Amortized | Acquired intangible assets held at December 31, 2023 are being amortized on the basis noted and over the following expected life: Amortization basis Expected life (years) Client relationships In line with underlying cash flows 3 to 21 Software In line with underlying cash flows or straight-line basis 5 to 9 Trademark and trade name Straight-line basis 5 to 25 Other In line with underlying cash flows or straight-line basis 5 to 11 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of Selected Financial Information and Summary of Total Assets and Liabilities Relates to the Operations of Willis Re | The following selected financial information relates to the operations of Willis Re for the periods presented: Years ended December 31, 2022 2021 Revenue from discontinued operations $ 48 $ 721 Costs of providing services Salaries and benefits 14 350 Other operating expenses 10 59 Depreciation and amortization — 2 Transaction and transformation, net — 33 Total costs of providing services 24 444 Other income, net 5 2 Income from discontinued operations before income taxes 29 279 (Loss)/gain on disposal of Willis Re ( 65 ) 2,300 Benefit from/(provision for) income tax expense 1 ( 500 ) Net income (payable to)/receivable from Gallagher on Deferred Closing ( 5 ) 1 (Loss)/income from discontinued operations, net of tax $ ( 40 ) $ 2,080 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents revenue by service offering and segment, as well as a reconciliation to total revenue for the years ended December 31, 2023, 2022 and 2021. Along with reimbursable expenses and other, total revenue by service offering represents our revenue from customer contracts. Year Ended Broking Consulting Outsourced Other Total revenue by service offering Reimbursable expenses and other (i) Total revenue from customer contracts Interest and other income Total revenue HWC 2023 $ 1,531 $ 2,594 $ 1,078 $ 349 $ 5,552 $ 73 $ 5,625 $ 30 $ 5,655 2022 1,415 2,522 979 332 5,248 64 5,312 39 5,351 2021 1,295 2,538 1,046 352 5,231 60 5,291 37 5,328 R&B 2023 2,947 378 81 222 3,628 13 3,641 107 3,748 2022 2,745 370 75 194 3,384 11 3,395 76 3,471 2021 2,822 384 88 175 3,469 7 3,476 95 3,571 Divested Businesses 2023 — — — — — — — — — 2022 — — — — — — — — — 2021 65 6 — — 71 — 71 35 106 Corporate (i) 2023 8 14 — — 22 16 38 42 80 2022 7 10 — — 17 2 19 25 44 2021 — 8 — 4 12 ( 24 ) ( 12 ) 5 ( 7 ) Total 2023 $ 4,486 $ 2,986 $ 1,159 $ 571 $ 9,202 $ 102 $ 9,304 $ 179 $ 9,483 2022 $ 4,167 $ 2,902 $ 1,054 $ 526 $ 8,649 $ 77 $ 8,726 $ 140 $ 8,866 2021 $ 4,182 $ 2,936 $ 1,134 $ 531 $ 8,783 $ 43 $ 8,826 $ 172 $ 8,998 (i) Reimbursable expenses and other, as well as Corporate revenue, are excluded from segment revenue, but included in total revenue on the consolidated statements of comprehensive income. Amounts included in Corporate revenue may include eliminations, adjustments to reserves and impacts from hedged revenue transactions. Interest and other income is included in segment revenue and total revenue, however it has been presented separately in the above tables because it does not arise directly from contracts with customers. The significant components of interest and other income are as follows for the periods presented above: Year Ended December 31, Book-of-business settlements Interest income Other income Total 2023 2022 2021 2023 2022 2021 2023 2022 2021 2023 2022 2021 HWC $ 1 $ 19 $ 17 $ 25 $ 8 $ 2 $ 4 $ 12 $ 18 $ 30 $ 39 $ 37 R&B 25 52 82 79 25 11 3 ( 1 ) 2 107 76 95 Divested businesses — — 35 — — — — — — — — 35 Corporate — — — 41 22 ( 1 ) 1 3 6 42 25 5 Total interest and other income $ 26 $ 71 $ 134 $ 145 $ 55 $ 12 $ 8 $ 14 $ 26 $ 179 $ 140 $ 172 As a result of the cessation of the co-broking agreement, (see Note 3 — Acquisitions and Divestitures) interest income associated with fiduciary funds is now allocated more directly to the Risk and Broking segment beginning in the third quarter of 2023. These amounts were previously allocated to the Corporate segment following the disposal of Willis Re. The following table presents revenue from service offerings by the geography where our work was performed for the years ended December 31, 2023, 2022 and 2021. The reconciliation to total revenue on our consolidated statements of comprehensive income and to segment revenue is shown in the table above. Year Ended North America Europe International Total revenue by geography HWC 2023 $ 3,738 $ 1,362 $ 452 $ 5,552 2022 3,569 1,266 413 5,248 2021 3,456 1,376 399 5,231 R&B 2023 1,400 1,668 560 3,628 2022 1,328 1,527 529 3,384 2021 1,295 1,623 551 3,469 Divested Businesses 2023 — — — — 2022 — — — — 2021 17 53 1 71 Corporate 2023 8 12 2 22 2022 7 9 1 17 2021 8 3 1 12 Total 2023 $ 5,146 $ 3,042 $ 1,014 $ 9,202 2022 $ 4,904 $ 2,802 $ 943 $ 8,649 2021 $ 4,776 $ 3,055 $ 952 $ 8,783 |
Contract with Customer, Asset and Liability | The Company reports accounts receivable, net on the consolidated balance sheet, which includes billed and unbilled receivables and current contract assets. In addition to accounts receivable, net, the Company had the following non-current contract assets and deferred revenue balances at December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Billed receivables, net of allowance for doubtful accounts of $ 34 million and $ 46 $ 1,581 $ 1,464 Unbilled receivables 491 457 Current contract assets 500 466 Accounts receivable, net $ 2,572 $ 2,387 Non-current accounts receivable, net $ 19 $ 9 Non-current contract assets $ 909 $ 745 Deferred revenue $ 677 $ 646 |
Schedule of Changes in Allowance for Doubtful Accounts | Accounts receivable are stated at estimated net realizable values. The following table presents the changes in our allowance for doubtful accounts for the years ended December 31, 2023, 2022 and 2021. December 31, December 31, December 31, Balance at beginning of year $ 46 $ 45 $ 40 Additions charged to costs and expenses 6 14 16 Deductions/other movements ( 21 ) ( 20 ) ( 18 ) Foreign exchange 3 7 7 Balance at end of year $ 34 $ 46 $ 45 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | In addition, in accordance with ASC 606, the Company has elected not to disclose the remaining performance obligations when one or both of the following circumstances apply: • Performance obligations which are part of a contract that has an original expected duration of less than one year , and • Performance obligations satisfied in accordance with ASC 606-10-55-18 (‘right to invoice’). 2024 2025 2026 onward Total Revenue expected to be recognized on contracts as of $ 490 $ 371 $ 460 $ 1,321 |
Capitalized Contract Cost | The following table shows the categories of costs that are capitalized and deferred over the expected life of a contract. Costs to fulfill December 31, December 31, December 31, Balance at beginning of the year $ 197 $ 189 $ 191 New capitalized costs 458 421 454 Amortization ( 441 ) ( 407 ) ( 451 ) Disposals — — ( 4 ) Impairments — — ( 1 ) Foreign currency translation 4 ( 6 ) — Balance at end of the year $ 218 $ 197 $ 189 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents segment revenue and segment operating income for our reportable segments for the years ended December 31, 2023, 2022 and 2021. Segment revenue Segment operating income Years ended December 31 Years ended December 31 2023 2022 2021 2023 2022 2021 HWC $ 5,582 $ 5,287 $ 5,268 $ 1,565 $ 1,382 $ 1,346 R&B 3,735 3,460 3,564 813 734 835 Total $ 9,317 $ 8,747 $ 8,832 $ 2,378 $ 2,116 $ 2,181 |
Net Operating Income of the Reported Segments | The following table presents reconciliations of the information reported by segment to the Company’s consolidated amounts reported for the years ended December 31, 2023, 2022 and 2021. Years ended December 31, 2023 2022 2021 Revenue: Total segment revenue $ 9,317 $ 8,747 $ 8,832 Divested businesses (i) — — 106 Reimbursable expenses and other 166 119 60 Revenue $ 9,483 $ 8,866 $ 8,998 Total segment operating income $ 2,378 $ 2,116 $ 2,181 Divested businesses (i) — — ( 24 ) Impairment (ii) — ( 81 ) — Amortization ( 263 ) ( 312 ) ( 369 ) Restructuring costs (iii) ( 68 ) ( 99 ) ( 26 ) Transaction and transformation, net (iv) ( 386 ) ( 181 ) 806 Unallocated, net (v) ( 296 ) ( 265 ) ( 366 ) Income from operations 1,365 1,178 2,202 Interest expense ( 235 ) ( 208 ) ( 211 ) Other income, net 149 288 701 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME $ 1,279 $ 1,258 $ 2,692 (i) Represents the revenue and income from operations of certain Investment, Risk and Reinsurance businesses which were divested in 2021 and not classified as discontinued operations. (ii) Represents the impairment related to the net assets of our Russian business that are held outside of our Russian entities (see Note 3 — Acquisitions and Divestitures for further information). (iii) See Note 6 — Restructuring Costs for the composition of costs for 2023, 2022 and 2021. (iv) In 2023 and 2022, in addition to legal fees and other transaction costs, includes primarily consulting fees and compensation costs related to the Transformation program (see Note 6 — Restructuring Costs). For the year ended December 31, 2021, includes the $ 1 billion income receipt related to the termination of, and fees related to, the then-proposed Aon combination. (v) Includes certain costs, primarily related to corporate functions which are not directly related to the segments, and certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes. |
Revenue and Tangible Long-lived Assets by Geographical Areas | Below are our revenue and tangible long-lived assets for Ireland, our country of domicile, countries with significant concentrations, and all other foreign countries as of and for the years ended as indicated: Revenue Long-Lived Assets (i) Years ended December 31, December 31, December 31, 2023 2022 2021 2023 2022 Ireland $ 118 $ 130 $ 197 $ 10 $ 11 United States 5,011 4,760 4,621 408 465 United Kingdom 1,723 1,563 1,632 512 496 Rest of World 2,631 2,413 2,548 355 332 Total Foreign Countries 9,365 8,736 8,801 1,275 1,293 $ 9,483 $ 8,866 $ 8,998 $ 1,285 $ 1,304 (i) Tangible long-lived assets consist of fixed assets and ROU assets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income from continuing operations before income taxes and interest in earnings of associates by location of taxing jurisdiction | An analysis of income from continuing operations before income taxes by taxing jurisdiction is shown below: Years ended December 31, 2023 2022 2021 Ireland $ 14 $ ( 160 ) $ 673 U.S. 348 394 516 U.K. ( 93 ) 142 552 Rest of World 1,010 882 951 Total $ 1,279 $ 1,258 $ 2,692 |
Provision for benefit from income taxes from continuing operations | The components of the provision for income taxes from continuing operations include: Years ended December 31, 2023 2022 2021 Current tax expense: U.S. federal taxes $ ( 106 ) $ ( 103 ) $ ( 79 ) U.S. state and local taxes ( 41 ) ( 39 ) ( 25 ) U.K. corporation tax ( 40 ) ( 13 ) ( 33 ) Other jurisdictions ( 137 ) ( 93 ) ( 303 ) Total current tax expense ( 324 ) ( 248 ) ( 440 ) Deferred tax benefit/(expense): U.S. federal taxes 20 52 ( 41 ) U.S. state and local taxes 15 ( 5 ) 3 U.K. corporation tax 63 ( 7 ) ( 65 ) Other jurisdictions 11 14 7 Total deferred tax benefit/(expense) 109 54 ( 96 ) Total provision for income taxes $ ( 215 ) $ ( 194 ) $ ( 536 ) |
Reconciliation between US federal income taxes at the statutory rate and the Company's provision for income taxes on continuing operations | The reported provision for income taxes differs from the amounts that would have resulted had the reported income from continuing operations before income taxes been taxed at the U.S. federal statutory rate. The principal reasons for the differences between the amounts provided and those that would have resulted from the application of the U.S. federal statutory tax rate are as follows: Years ended December 31, 2023 2022 2021 INCOME FROM CONTINUING OPERATIONS BEFORE $ 1,279 $ 1,258 $ 2,692 U.S. federal statutory income tax rate 21 % 21 % 21 % Income tax expense at U.S. federal tax rate ( 269 ) ( 264 ) ( 565 ) Adjustments to derive effective tax rate: Non-deductible expenses and dividends ( 24 ) ( 19 ) ( 15 ) Net adjustments on acquisition costs ( 1 ) ( 4 ) 13 Impact of change in rate on deferred tax balances 10 ( 1 ) ( 36 ) Effect of foreign exchange and other differences 1 28 — Changes in valuation allowances ( 2 ) 1 2 Net tax effect on intra-group items 94 84 84 Net tax effect on disposal of operations 6 1 62 Tax differentials of non-U.S. jurisdictions 8 20 ( 24 ) Impact of U.S. state and local taxes ( 26 ) ( 42 ) ( 23 ) Global Intangible Low-Taxed Income (GILTI) ( 9 ) ( 10 ) ( 4 ) Subpart F income ( 5 ) ( 6 ) ( 6 ) Base Erosion Anti-Abuse Tax (BEAT) 13 24 ( 22 ) Tax on unremitted earnings ( 12 ) ( 14 ) — Other items, net 1 8 ( 2 ) Provision for income taxes $ ( 215 ) $ ( 194 ) $ ( 536 ) |
Significant components of deferred income tax assets and liabilities and their balance sheet classifications | Deferred income tax assets and liabilities included in the consolidated balance sheets at December 31, 2023 and 2022 are comprised of the following: December 31, 2023 2022 Deferred tax assets: Accrued expenses not currently deductible $ 76 $ 69 Interest carryforwards 276 174 Net operating losses 44 44 Capital loss carryforwards 1 1 Accrued retirement benefits 150 85 Operating lease liabilities 120 125 Deferred compensation 93 97 Share-based compensation 25 18 Financial derivative transactions 2 4 Gross deferred tax assets 787 617 Less: valuation allowance ( 35 ) ( 28 ) Net deferred tax assets $ 752 $ 589 Deferred tax liabilities: Cost of intangible assets, net of related amortization $ 604 $ 679 Operating lease right-of-use assets 103 106 Cost of tangible assets, net of related depreciation 24 44 Prepaid retirement benefits 129 142 Accrued revenue not currently taxable 319 262 Unremitted earnings 29 36 Deferred tax liabilities $ 1,208 $ 1,269 Net deferred tax liabilities $ 456 $ 680 The net deferred income tax assets are included in Other non-current assets and the net deferred tax liabilities are included in Deferred tax liabilities in our consolidated balance sheets. December 31, 2023 2022 Balance sheet classifications: Other non-current assets $ 86 $ 68 Deferred tax liabilities 542 748 Net deferred tax liability $ 456 $ 680 |
Summary of Valuation Allowance | An analysis of our valuation allowance is shown below. Years ended December 31, 2023 2022 2021 Balance at beginning of year $ 28 $ 42 $ 84 Additions charged to costs and expenses 10 8 3 Deductions ( 3 ) ( 22 ) ( 45 ) Balance at end of year $ 35 $ 28 $ 42 The movement in the 2023 valuation allowance differs from the 2023 rate reconciliation primarily due to the increase in state net operating losses and the related valuation allowance. The movement in the prior-year valuation allowance differs from the 2022 rate reconciliation primarily due to the write-down of state net operating losses and the related valuation allowance. In addition, 2022 and 2021 valuation allowances differ from the 2022 and 2021 rate reconciliations, respectively, as part of the tax benefits were allocated to discontinued operations. |
Reconciliation of the beginning and ending amounts of unrecognized tax benefits | A reconciliation of the beginning and ending balances of the liability for unrecognized tax benefits is as follows: 2023 2022 2021 Balance at beginning of year $ 47 $ 43 $ 50 Increases related to tax positions in prior years 13 16 — Decreases related to tax positions in prior years ( 9 ) ( 2 ) — Increases related to tax positions in current year 3 — — Decreases related to settlements — ( 1 ) — Decreases related to lapse in statute of limitations ( 4 ) ( 6 ) ( 6 ) Cumulative translation adjustment and other adjustments 1 ( 3 ) ( 1 ) Balance at end of year $ 51 $ 47 $ 43 |
Summary of Income Tax Examinations | Open Tax Years (fiscal year ending in) U.S. — federal 2018 and forward U.S. — various states 2015 and forward U.K. 2014 and forward Ireland 2019 and forward France 2017 and forward Germany 2008 and forward Canada - federal 2016 and forward |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following table reflects changes in the net carrying amount of the components of fixed assets for the years ended December 31, 2023 and 2022: Furniture, Leasehold Land and Total Cost: at January 1, 2022 $ 1,477 $ 527 $ 88 $ 2,092 Additions 174 24 — 198 Acquisitions 1 — — 1 Disposals (i) ( 129 ) ( 78 ) — ( 207 ) Foreign exchange ( 71 ) ( 21 ) ( 5 ) ( 97 ) Cost: at December 31, 2022 1,452 452 83 1,987 Additions 219 32 — 251 Disposals (i) ( 182 ) ( 34 ) — ( 216 ) Foreign exchange 38 9 2 49 Cost: at December 31, 2023 $ 1,527 $ 459 $ 85 $ 2,071 Depreciation: at January 1, 2022 $ ( 877 ) $ ( 301 ) $ ( 63 ) $ ( 1,241 ) Depreciation expense ( 211 ) ( 40 ) ( 4 ) ( 255 ) Disposals 113 57 — 170 Foreign exchange 42 12 3 57 Depreciation: at December 31, 2022 ( 933 ) ( 272 ) ( 64 ) ( 1,269 ) Depreciation expense ( 202 ) ( 37 ) ( 3 ) ( 242 ) Disposals 164 25 — 189 Foreign exchange ( 23 ) ( 5 ) ( 1 ) ( 29 ) Depreciation: at December 31, 2023 $ ( 994 ) $ ( 289 ) $ ( 68 ) $ ( 1,351 ) Net book value: At December 31, 2022 $ 519 $ 180 $ 19 $ 718 At December 31, 2023 $ 533 $ 170 $ 17 $ 720 (i) For 2023 and 2022, includes $ 17 million and $ 12 million, respectively, of furniture, equipment and software costs and $ 4 million and $ 18 million, respectively, of leasehold improvements costs which have been written off as part of technology modernization and real estate rationalization, respectively, under the Transformation program (see Note 6 – Restructuring Costs). |
Finance Leases | Included within land and buildings are the following assets held under finance leases: December 31, 2023 2022 Finance leases $ 26 $ 26 Accumulated depreciation ( 23 ) ( 22 ) $ 3 $ 4 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Total Restructuring Costs | An analysis of total restructuring costs incurred under the Transformation program by category and by segment and corporate functions, from commencement to December 31, 2023, is as follows: HWC R&B Corporate Total 2021 Real estate rationalization $ — $ — $ 19 $ 19 Technology modernization — 5 — 5 Process optimization — — — — Other — — 2 2 2022 Real estate rationalization — — 79 79 Technology modernization — 3 16 19 Process optimization 1 — — 1 Other — — — — 2023 Real estate rationalization — — 46 46 Technology modernization 2 5 15 22 Process optimization — — — — Other — — — — Total Real estate rationalization — — 144 144 Technology modernization 2 13 31 46 Process optimization 1 — — 1 Other — — 2 2 Total $ 3 $ 13 $ 177 $ 193 |
Rollforward of Liability Associated with Cash-based Charges | A rollforward of the liability associated with cash-based charges related to restructuring costs associated with the Transformation program is as follows: Real estate rationalization Technology modernization Process optimization Other Total Balance at October 1, 2021 $ — $ — $ — $ — $ — Charges incurred — — — 2 2 Cash payments — — — ( 1 ) ( 1 ) Balance at December 31, 2021 — — — 1 1 Charges incurred 27 — 1 — 28 Cash payments ( 21 ) — ( 1 ) ( 1 ) ( 23 ) Balance at December 31, 2022 6 — — — 6 Charges incurred 22 8 — — 30 Cash payments ( 25 ) — — — ( 25 ) Balance at December 31, 2023 $ 3 $ 8 $ — $ — $ 11 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Goodwill | The components of goodwill are outlined below for the years ended December 31, 2023 and 2022. HWC R&B Total Balance at December 31, 2021 Goodwill, gross $ 7,904 $ 2,771 $ 10,675 Accumulated impairment losses ( 130 ) ( 362 ) ( 492 ) Goodwill, net - December 31, 2021 7,774 2,409 10,183 Goodwill acquired — 104 104 Goodwill disposals — ( 18 ) ( 18 ) Foreign exchange ( 34 ) ( 62 ) ( 96 ) Balance at December 31, 2022 Goodwill, gross 7,870 2,795 10,665 Accumulated impairment losses ( 130 ) ( 362 ) ( 492 ) Goodwill, net - December 31, 2022 7,740 2,433 10,173 Goodwill disposals ( 21 ) — ( 21 ) Foreign exchange 17 26 43 Balance at December 31, 2023 Goodwill, gross 7,866 2,821 10,687 Accumulated impairment losses ( 130 ) ( 362 ) ( 492 ) Goodwill, net - December 31, 2023 $ 7,736 $ 2,459 $ 10,195 |
Changes in the Net Carrying Amount of the Components of Finite-Lived Intangible Assets | The following table reflects changes in the net carrying amounts of the components of finite-lived intangible assets for the years ended December 31, 2023 and 2022: Client relationships Software Trademark and trade name Other Total Balance at December 31, 2021: Intangible assets, gross $ 3,794 $ 742 $ 1,039 $ 102 $ 5,677 Accumulated amortization ( 2,118 ) ( 701 ) ( 257 ) ( 46 ) ( 3,122 ) Intangible assets, net - December 31, 2021 1,676 41 782 56 2,555 Intangible assets acquired 67 4 1 — 72 Intangible asset disposals ( 1 ) — — ( 5 ) ( 6 ) Amortization ( 230 ) ( 31 ) ( 42 ) ( 9 ) ( 312 ) Foreign exchange ( 34 ) ( 1 ) ( 1 ) — ( 36 ) Balance at December 31, 2022: Intangible assets, gross 3,760 725 1,038 98 5,621 Accumulated amortization ( 2,282 ) ( 712 ) ( 298 ) ( 56 ) ( 3,348 ) Intangible assets, net - December 31, 2022 1,478 13 740 42 2,273 Intangible assets acquired 7 — — — 7 Intangible asset disposals — — — ( 13 ) ( 13 ) Amortization ( 204 ) ( 10 ) ( 43 ) ( 6 ) ( 263 ) Foreign exchange 12 — — — 12 Balance at December 31, 2023: Intangible assets, gross 3,807 729 1,039 63 5,638 Accumulated amortization ( 2,514 ) ( 726 ) ( 342 ) ( 40 ) ( 3,622 ) Intangible assets, net - December 31, 2023 $ 1,293 $ 3 $ 697 $ 23 $ 2,016 |
Schedule of Future Estimated Amortization Expense for Amortizable Intangible Assets | The table below reflects the future estimated amortization expense for amortizable intangible assets for the next five years and thereafter: Years ended December 31, Amortization 2024 $ 231 2025 211 2026 202 2027 198 2028 194 Thereafter 980 Total $ 2,016 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Designated [Member] | |
Schedule of Derivative Instruments Designated/Nondesignated As Hedging Instrument Effect on Condensed Consolidated Statements of Comprehensive Income | The effects of the material derivative instruments that are designated as hedging instruments on the consolidated statements of comprehensive income for the years ended December 31, 2023, 2022 and 2021 are below. Gain/(loss) recognized in OCL (effective element) 2023 2022 2021 Foreign exchange contracts $ 3 $ ( 8 ) $ 5 Location of gain/(loss) reclassified from Accumulated OCL into income Gain/(loss) reclassified from Accumulated OCL into income (effective element) 2023 2022 2021 Revenue $ 1 $ 2 $ ( 3 ) Salaries and benefits ( 2 ) ( 4 ) 6 Discontinued operations — — 3 $ ( 1 ) $ ( 2 ) $ 6 |
Nondesignated [Member] | |
Schedule of Derivative Instruments Designated/Nondesignated As Hedging Instrument Effect on Condensed Consolidated Statements of Comprehensive Income | The effects of derivatives that have not been designated as hedging instruments on the consolidated statements of comprehensive income for the years ended December 31, 2023, 2022 and 2021 are as follows (see Note 17 — Other Income, Net for the net foreign currency impact on the Company’s consolidated statements of comprehensive income which includes the results of the offset of underlying exposures): Location of gain/(loss) Gain/(loss) recognized in income Derivatives not designated as hedging instruments: recognized in income 2023 2022 2021 Foreign exchange contracts Other income, net $ 11 $ ( 147 ) $ — |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Current and Long-term Debt | Current debt consists of the following: December 31, 2023 2022 4.625 % senior notes due 2023 $ — $ 250 3.600 % senior notes due 2024 650 — $ 650 $ 250 Long-term debt consists of the following: December 31, 2023 2022 Revolving $ 1.5 billion credit facility $ — $ — 3.600 % senior notes due 2024 — 649 4.400 % senior notes due 2026 548 547 4.650 % senior notes due 2027 745 744 4.500 % senior notes due 2028 598 597 2.950 % senior notes due 2029 726 726 5.350 % senior notes due 2033 741 — 6.125 % senior notes due 2043 272 271 5.050 % senior notes due 2048 395 395 3.875 % senior notes due 2049 542 542 $ 4,567 $ 4,471 |
Summary of Entities | The following table presents a summary of the entities that issued each note or entered into the revolving credit facility and those wholly-owned and consolidated subsidiaries of the Company that guarantee each respective note and the revolving credit facility on a joint and several basis as of December 31, 2023. Entity Revolving credit facility 3.600% due 2024 Willis Towers Watson plc Guarantor Guarantor Trinity Acquisition plc Issuer Guarantor Willis North America Inc. Guarantor Issuer Willis Netherlands Holdings B.V. Guarantor Guarantor Willis Investment UK Holdings Limited Guarantor Guarantor TA I Limited Guarantor Guarantor Willis Group Limited Guarantor Guarantor Willis Towers Watson Sub Holdings Unlimited Company Guarantor Guarantor Willis Towers Watson UK Holdings Limited Guarantor Guarantor |
Schedule of Maturities of Long-term Debt | The following table summarizes the maturity of our debt and interest on senior notes and excludes any reduction for debt issuance costs: 2024 2025 2026 2027 2028 Thereafter Total Senior notes $ 650 $ — $ 550 $ 750 $ 600 $ 2,700 $ 5,250 Interest on senior notes 214 206 187 163 139 1,276 2,185 Revolving $ 1.5 billion credit facility — — — — — — — Total $ 864 $ 206 $ 737 $ 913 $ 739 $ 3,976 $ 7,435 |
Schedule of Debt Interest Expense | The following table shows an analysis of the interest expense for the years ended December 31, 2023, 2022 and 2021: Years ended December 31, 2023 2022 2021 Senior notes $ 227 $ 196 $ 200 Revolving credit facility 3 3 3 Collateralized facility — — 2 Other (i) 5 9 6 Total interest expense $ 235 $ 208 $ 211 (i) Other primarily includes interest expense on finance leases and accretion on deferred and contingent consideration. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our assets and liabilities measured at fair value on a recurring basis at December 31, 2023 and December 31, 2022: Fair Value Measurements on a Recurring Basis at Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities: Mutual funds/exchange traded funds (i) Prepaid and other current assets and $ 102 $ — $ — $ 102 Fiduciary assets 215 — — 215 Commingled funds (i) (ii) Other non-current assets — — — 9 Hedge funds (i) (iii) Other non-current assets — — — 8 Derivatives: Derivative financial instruments (iv) Prepaid and other current assets and $ — $ 6 $ — $ 6 Liabilities: Contingent consideration: Contingent consideration (v) (vi) Other current liabilities and $ — $ — $ 31 $ 31 Derivatives: Derivative financial instruments (iv) Other current liabilities and $ — $ 1 $ — $ 1 Fair Value Measurements on a Recurring Basis at Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities: Mutual funds/exchange traded funds (i) Prepaid and other current assets and $ 7 $ — $ — $ 7 Fiduciary assets 142 — — 142 Derivatives: Derivative financial instruments (iv) Prepaid and other current assets and $ — $ 26 $ — $ 26 Liabilities: Contingent consideration: Contingent consideration (v) (vi) Other current liabilities and $ — $ — $ 40 $ 40 Derivatives: Derivative financial instruments (iv) Other current liabilities and $ — $ 5 $ — $ 5 (i) With the exception of the funds included in fiduciary assets, the majority of these balances are held as part of deferred compensation plans with related liabilities in other current liabilities and other non-current liabilities on the consolidated balance sheets. (ii) Consists of the Towers Watson Global Equity Focus Fund, for which redemptions can occur on any business day, and require a minimum of one business day’s notice. (iii) Consists of the Towers Watson Alternative Credit Fund, for which the redemption period is generally quarterly, however requires a 50-day notice. (iv) See Note 10 — Derivative Financial Instruments for further information on our derivative investments . (v) Probability weightings are based on our knowledge of the past and planned performance of the acquired entity to which the contingent consideration applies. The fair value weighted-average discount rates used in our material contingent consideration calculations were 13.28 % and 10.26 % at December 31, 2023 and December 31, 2022, respectively. The range of these discount rates was 11.61 % - 13.80 % at December 31, 2023. Using different probability weightings and discount rates could result in an increase or decrease of the contingent consideration payable. (vi) Consideration due to be paid across multiple years until 2027. |
Schedule of Change in Fair Value of Level 3 Liabilities | The following table summarizes the change in fair value of the Level 3 liabilities: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) December 31, 2023 Balance at December 31, 2022 $ 40 Obligations assumed — Payments ( 15 ) Realized and unrealized losses (i) 6 Foreign exchange — Balance at December 31, 2023 $ 31 (i) Realized and unrealized losses include accretion and adjustments to contingent consideration liabilities, which are included within Interest expense and Other operating expenses, respectively, on the consolidated statements of comprehensive income . |
Schedule of Assets and Liabilities Whose Carrying Values Differ From the Fair Value and are Not Measured on a Recurring Basis | The following tables present our assets and liabilities not measured at fair value on a recurring basis at December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Carrying Fair Carrying Fair Assets: Long-term note receivable $ 74 $ 70 $ 68 $ 63 Liabilities: Current debt $ 650 $ 645 $ 250 $ 248 Long-term debt $ 4,567 $ 4,359 $ 4,471 $ 4,069 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The following schedules provide information concerning the defined benefit pension plans as of and for the years ended December 31, 2023 and 2022: 2023 2022 U.S. U.K. Other U.S. U.K. Other Change in Benefit Obligation Benefit obligation, beginning of year $ 3,871 $ 2,435 $ 655 $ 5,096 $ 4,369 $ 922 Service cost 56 6 14 77 12 22 Interest cost 195 120 28 119 70 15 Employee contributions 17 — 1 16 — 1 Actuarial losses/(gains) 201 ( 32 ) 72 ( 1,186 ) ( 1,434 ) ( 221 ) Settlements ( 11 ) — ( 2 ) ( 25 ) ( 5 ) ( 2 ) Benefits paid ( 230 ) ( 116 ) ( 35 ) ( 226 ) ( 130 ) ( 30 ) Other ( 1 ) — 3 — — 2 Foreign currency changes — 145 26 — ( 447 ) ( 54 ) Benefit obligation, end of year $ 4,098 $ 2,558 $ 762 $ 3,871 $ 2,435 $ 655 Change in Plan Assets Fair value of plan assets, beginning of $ 3,823 $ 2,999 $ 580 $ 4,710 $ 5,266 $ 739 Actual return on plan assets 173 ( 3 ) 67 ( 694 ) ( 1,622 ) ( 124 ) Employer contributions 31 13 36 42 33 38 Employee contributions 17 — 1 16 — 1 Settlements ( 11 ) — ( 2 ) ( 25 ) ( 5 ) ( 2 ) Benefits paid ( 230 ) ( 116 ) ( 35 ) ( 226 ) ( 130 ) ( 30 ) Other — — 3 — — 2 Foreign currency changes — 176 23 — ( 543 ) ( 44 ) Fair value of plan assets, end of year $ 3,803 $ 3,069 $ 673 $ 3,823 $ 2,999 $ 580 Funded status at end of year $ ( 295 ) $ 511 $ ( 89 ) $ ( 48 ) $ 564 $ ( 75 ) Accumulated Benefit Obligation $ 4,098 $ 2,558 $ 733 $ 3,871 $ 2,435 $ 629 Components on the Consolidated Pension benefits assets $ — $ 516 $ 52 $ 179 $ 569 $ 57 Current liability for pension benefits $ ( 24 ) $ ( 1 ) $ ( 5 ) $ ( 26 ) $ — $ ( 5 ) Non-current liability for pension $ ( 271 ) $ ( 4 ) $ ( 136 ) $ ( 201 ) $ ( 5 ) $ ( 127 ) $ ( 295 ) $ 511 $ ( 89 ) $ ( 48 ) $ 564 $ ( 75 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive loss as of December 31, 2023 and 2022 consist of: 2023 2022 U.S. U.K. Other U.S. U.K. Other Net actuarial loss $ 915 $ 1,674 $ 82 $ 597 $ 1,497 $ 36 Net prior service loss/(gain) — 19 8 — 6 9 Accumulated other comprehensive loss $ 915 $ 1,693 $ 90 $ 597 $ 1,503 $ 45 |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The following table presents the projected benefit obligation and fair value of plan assets for our plans that have a projected benefit obligation in excess of plan assets as of December 31, 2023 and 2022: 2023 2022 U.S. U.K. Other U.S. U.K. Other Projected benefit obligation at end of year $ 4,098 $ 5 $ 324 $ 939 $ 5 $ 278 Fair value of plan assets at end of year $ 3,803 $ — $ 182 $ 713 $ — $ 145 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table presents the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for our plans that have an accumulated benefit obligation in excess of plan assets as of December 31, 2023 and 2022. 2023 2022 U.S. U.K. Other U.S. U.K. Other Projected benefit obligation at end of year $ 4,098 $ 5 $ 324 $ 939 $ 5 $ 238 Accumulated benefit obligation at end of year $ 4,098 $ 5 $ 309 $ 939 $ 5 $ 228 Fair value of plan assets at end of year $ 3,803 $ — $ 182 $ 713 $ — $ 106 |
Schedule of Net Periodic Benefit Cost | The components of the net periodic benefit income and other amounts recognized in other comprehensive (income)/loss for the years ended December 31, 2023, 2022 and 2021 for the defined benefit pension plans are as follows: 2023 2022 2021 U.S. U.K. Other U.S. U.K. Other U.S. U.K. Other Components of net periodic Service cost $ 56 $ 6 $ 14 $ 77 $ 12 $ 22 $ 79 $ 17 $ 24 Interest cost 195 120 28 119 70 15 94 56 12 Expected return on plan ( 304 ) ( 162 ) ( 38 ) ( 331 ) ( 144 ) ( 38 ) ( 312 ) ( 170 ) ( 37 ) Amortization of unrecognized — ( 12 ) 1 — ( 12 ) 1 — ( 17 ) 1 Amortization of unrecognized 13 48 — 14 29 3 37 27 6 Settlement 1 — ( 1 ) 4 1 ( 1 ) 1 2 2 Curtailment gain — — — — — — — ( 1 ) — Other — — — — — — 1 — — Net periodic benefit (income)/cost $ ( 39 ) $ — $ 4 $ ( 117 ) $ ( 44 ) $ 2 $ ( 100 ) $ ( 86 ) $ 8 Other changes in plan assets Net actuarial (gain)/loss $ 332 $ 133 $ 43 $ ( 161 ) $ 332 $ ( 59 ) $ ( 328 ) $ 140 $ ( 61 ) Amortization of unrecognized ( 13 ) ( 48 ) — ( 14 ) ( 29 ) ( 3 ) ( 37 ) ( 27 ) ( 6 ) Prior service cost — — — — — — — — 12 Amortization of unrecognized — 12 ( 1 ) — 12 ( 1 ) — 17 ( 1 ) Settlement ( 1 ) — 1 ( 4 ) ( 1 ) 1 ( 1 ) ( 2 ) ( 2 ) Curtailment gain — — — — — — — 1 — Plan (disposal)/addition — — — — — — — ( 34 ) 8 Total recognized in other 318 97 43 ( 179 ) 314 ( 62 ) ( 366 ) 95 ( 50 ) Total recognized in net periodic $ 279 $ 97 $ 47 $ ( 296 ) $ 270 $ ( 60 ) $ ( 466 ) $ 9 $ ( 42 ) |
Schedule of Assumptions Used | The assumptions used to determine net periodic benefit cost for the fiscal years ended December 31, 2023, 2022 and 2021 were as follows: Years ended December 31, 2023 2022 2021 U.S. U.K. Other U.S. U.K. Other U.S. U.K. Other Discount rate - PBO 5.4 % 5.0 % 4.3 % 2.8 % 1.9 % 2.0 % 2.5 % 1.5 % 1.7 % Discount rate - service cost 5.5 % 5.0 % 4.3 % 3.0 % 1.9 % 2.4 % 2.7 % 1.6 % 2.3 % Discount rate - interest cost on 5.3 % 4.9 % 4.3 % 2.5 % 1.8 % 2.2 % 2.0 % 1.4 % 2.0 % Discount rate - interest cost on PBO 5.2 % 4.9 % 4.3 % 2.4 % 1.8 % 1.8 % 1.8 % 1.2 % 1.3 % Expected long-term rate of return 8.2 % 5.3 % 6.5 % 7.2 % 3.0 % 5.4 % 7.2 % 3.1 % 5.4 % Rate of increase in compensation 4.3 % 3.4 % 2.4 % 4.3 % 3.4 % 2.3 % 4.3 % 3.0 % 2.3 % The following tables present the assumptions used in the valuation to determine the projected benefit obligation for the fiscal years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 U.S. U.K. Other U.S. U.K. Other Discount rate 5.1 % 4.7 % 3.8 % 5.4 % 5.0 % 4.3 % Rate of increase in compensation levels 4.3 % 3.3 % 2.4 % 4.3 % 3.4 % 2.4 % |
Schedule of Allocation of Plan Assets | The Company’s pension plan asset target allocations as of December 31, 2023 were as follows (note the French plan is unfunded): U.S. U.K. Switzerland Canada Germany Ireland Asset Category WTW Willis Willis Towers WTW WTW WTW Willis Towers Equity securities 23 % 30 % — % 1 % 53 % 40 % 34 % 30 % 40 % Debt securities 33 % 33 % 35 % 19 % 14 % 50 % 62 % 28 % 30 % Real estate 16 % 11 % — % 1 % 28 % 5 % — % 3 % — % Other 28 % 26 % 65 % 79 % 5 % 5 % 4 % 39 % 30 % Total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % The fair values of our U.S. plan assets by asset category at December 31, 2023 and 2022 are as follows: December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset category: Cash $ 29 $ — $ — $ 29 $ 15 $ — $ — $ 15 Short-term securities — 85 — 85 — 89 — 89 Pooled/commingled funds — — — 2,146 — — — 1,945 Private equity — — — 665 — — — 612 Hedge funds — — — 878 — — — 1,160 Total assets $ 29 $ 85 $ — $ 3,803 $ 15 $ 89 $ — $ 3,821 The fair values of our U.K. plan assets by asset category at December 31, 2023 and 2022 are as follows: December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset category: Cash $ 204 $ — $ — $ 204 $ 125 $ — $ — $ 125 Government bonds 1,305 — — 1,305 1,267 — — 1,267 Corporate bonds — 282 — 282 — 335 — 335 Other fixed income — 377 — 377 — 189 — 189 Pooled/commingled funds — — — 1,065 — — — 1,255 Private equity — — — 14 — — — 20 Derivatives — 254 — 254 — 229 — 229 Real estate — — — 112 — — — 121 Insurance contracts — — 45 45 — — 40 40 Total assets $ 1,509 $ 913 $ 45 $ 3,658 $ 1,392 $ 753 $ 40 $ 3,581 Liability category: Repurchase agreements — 496 — 496 — 484 — 484 Derivatives — 93 — 93 — 98 — 98 Net assets $ 1,509 $ 324 $ 45 $ 3,069 $ 1,392 $ 171 $ 40 $ 2,999 The fair values of our Other plan assets by asset category at December 31, 2023 and 2022 are as follows: December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset category: Cash $ 2 $ — $ — $ 2 $ 3 $ — $ — $ 3 Pooled/commingled funds — — — 583 — — — 501 Hedge funds — — — 36 — — — 32 Insurance contracts — — 5 5 — — 5 5 Investment in multiple- — — 47 47 — — 39 39 Total assets $ 2 $ — $ 52 $ 673 $ 3 $ — $ 44 $ 580 |
Schedule of Net Plan Investments Reconciliation To Total Fair Value Of Plan Assets | The following table reconciles the net plan investments to the total fair value of the plan assets: December 31, 2023 2022 Net assets held in investments $ 7,545 $ 7,400 Net receivable for investments purchased — 2 Fair value of plan assets $ 7,545 $ 7,402 |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the fiscal year ended December 31, 2023: Level 3 Beginning balance at December 31, 2022 $ 84 Purchases 2 Unrealized gain 4 Foreign exchange 7 Ending balance at December 31, 2023 $ 97 |
Schedule of Projected Pension Contributions | The following table sets forth our projected pension contributions to our qualified plans for fiscal year 2023, as well as the pension contributions to our qualified plans in fiscal years 2023 and 2022: 2024 2023 2022 U.S. $ — $ — $ 1 U.K. $ 2 $ 12 $ 32 Other $ 9 $ 24 $ 25 |
Schedule of Expected Benefit Payments | Expected benefit payments from our defined benefit pension plans to current plan participants, including the effects of their expected future service, as appropriate, are as follows: Benefit Payments Fiscal Year U.S. U.K. Other Total 2024 $ 287 $ 119 $ 36 $ 442 2025 287 121 32 440 2026 293 130 33 456 2027 290 135 34 459 2028 289 137 36 462 Years 2029 – 2033 1,380 744 210 2,334 $ 2,826 $ 1,386 $ 381 $ 4,593 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease | The following tables present amounts recorded on our consolidated balance sheets at December 31, 2023 and 2022, classified as either operating or finance leases. Operating leases are presented separately on our consolidated balance sheets. For the finance leases, the ROU assets are included in fixed assets, net, and the liabilities are classified within Other current liabilities and Other non-current liabilities. December 31, 2023 December 31, 2022 Operating Leases Finance Leases Total Operating Leases Finance Leases Total Right-of-use assets $ 565 $ 3 $ 568 $ 586 $ 4 $ 590 Current lease liabilities 125 5 130 126 4 130 Long-term lease liabilities 592 7 599 620 12 632 |
Schedule of Amount Recorded in Consolidated Statements of Comprehensive Income | The following tables present amounts recorded on our consolidated statements of comprehensive income for the years ended December 31, 2023, 2022 and 2021: Years ended December 31, 2023 2022 2021 Finance lease cost: Amortization of right-of-use assets $ 1 $ 2 $ 1 Interest on lease liabilities 2 2 3 Operating lease cost 146 175 192 Short-term lease cost 1 — 1 Variable lease cost 64 71 52 Sublease income ( 13 ) ( 15 ) ( 20 ) Total lease cost, net $ 201 $ 235 $ 229 |
Schedule of Cash Paid in the Measurement of Lease Liabilities | Cash paid for amounts included in the measurement of lease liabilities for the years ended December 31, 2023, 2022 and 2021, as well as its location in the consolidated statements of cash flows, is as follows: Years ended December 31, 2023 2022 2021 Cash flows from operating activities: Operating leases $ 155 $ 173 $ 186 Finance leases 2 2 3 Cash flows used in financing activities: Finance leases 4 4 3 Total lease payments $ 161 $ 179 $ 192 |
Schedule of Weighted Average Term and Discount Rates | Our operating and finance leases have the following weighted-average terms and discount rates as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Operating Finance Operating Finance Weighted-average term (in years) 6.6 2.1 6.9 3.1 Weighted-average discount rate 3.7 % 12.7 % 3.4 % 12.7 % |
Schedule of Maturity of Operating and Finance Leases Liabilities | The maturity of our lease liabilities on an undiscounted basis, including a reconciliation to the total lease liabilities reported on the consolidated balance sheet as of December 31, 2023, is as follows: Operating Leases Finance Leases Total Leases 2024 $ 147 $ 6 $ 153 2025 135 6 141 2026 120 2 122 2027 96 — 96 2028 87 — 87 Thereafter 227 — 227 Total future lease payments 812 14 826 Interest ( 95 ) ( 2 ) ( 97 ) Total lease liabilities $ 717 $ 12 $ 729 |
Supplementary Information for_2
Supplementary Information for Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prepaid and Other Current Asset | Prepaid and other current assets consist of the following: December 31, December 31, Prepayments and accrued income $ 123 $ 132 Deferred contract costs 76 71 Derivatives and investments 4 43 Deferred compensation plan assets 16 16 Corporate income and other taxes 87 89 Acquired renewal commissions receivable 5 9 Other current assets 53 54 Total prepaid and other current assets $ 364 $ 414 |
Schedule of Other Non-current Assets | Other non-current assets consist of the following: December 31, December 31, Prepayments and accrued income $ 9 $ 10 Deferred contract costs 142 126 Deferred compensation plan assets 89 74 Deferred tax assets 86 68 Accounts receivable, net 19 9 Acquired renewal commissions receivable 23 29 Long-term note receivable 74 68 Other investments 88 90 Insurance recovery receivables 85 80 Non-current contract assets 909 745 Other non-current assets 49 58 Total other non-current assets $ 1,573 $ 1,357 |
Deferred Revenue and Accrued Expenses | Deferred revenue and accrued expenses consist of the following: December 31, December 31, Accounts payable, accrued liabilities and deferred income $ 1,073 $ 975 Accrued discretionary and incentive compensation 795 708 Accrued vacation 150 142 Other employee-related liabilities 86 90 Total deferred revenue and accrued expenses $ 2,104 $ 1,915 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following: December 31, December 31, Dividends payable $ 103 $ 102 Income taxes payable 50 83 Interest payable 50 49 Deferred compensation plan liabilities 16 14 Contingent and deferred consideration on acquisitions 7 17 Accrued retirement benefits 31 32 Payroll and other benefits-related liabilities (i) 166 157 Other taxes payable (i) 78 65 Derivatives 1 4 Third-party commissions 106 124 Other current liabilities (i) 70 69 Total other current liabilities $ 678 $ 716 (i) Certain amounts have been reclassified from the prior year to conform to the current year presentation. |
Provisions for Liabilities | Provision for liabilities consists of the following: December 31, December 31, Claims, lawsuits and other proceedings $ 306 $ 296 Other provisions 59 61 Total provision for liabilities $ 365 $ 357 |
Schedule of Other Non-current Liabilities | Other non-current liabilities consist of the following: December 31, December 31, Deferred and long-term compensation plan liabilities (i) $ 97 $ 113 Contingent and deferred consideration on acquisitions 27 29 Liabilities for uncertain tax positions 42 40 Finance leases 7 12 Other non-current liabilities (i) 65 27 Total other non-current liabilities $ 238 $ 221 (i) Certain amounts have been reclassified from the prior year to conform to the current year presentation. |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income | Other income, net consists of the following: Years ended December 31, 2023 2022 2021 Gain on disposal of operations (i) $ 43 $ 7 $ 379 Net periodic pension and postretirement benefit credits 109 272 303 Interest in earnings of associates and other investments 3 4 8 Foreign exchange (loss)/gain (ii) ( 11 ) — 8 Other 5 5 3 Other income, net $ 149 $ 288 $ 701 (i) For the year ended December 31, 2022, includes a $ 24 million non-cash revaluation gain related to an acquisition completed in stages. (ii) Includes the offsetting effects of the Company's foreign currency hedging program. See Note 10 — Derivative Financial Instruments. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | The components of other comprehensive (loss)/income are as follows: December 31, 2023 December 31, 2022 December 31, 2021 Before Tax Net of Before Tax Net of Before Tax Net of Other comprehensive (loss)/income: Foreign currency translation $ 173 $ — $ 173 $ ( 499 ) $ — $ ( 499 ) $ ( 87 ) $ — $ ( 87 ) Defined pension and post-retirement benefits ( 546 ) 138 ( 408 ) 87 ( 22 ) 65 343 ( 83 ) 260 Derivative instruments 3 ( 1 ) 2 ( 6 ) 4 ( 2 ) ( 1 ) 3 2 Other comprehensive (loss)/income ( 370 ) 137 ( 233 ) ( 418 ) ( 18 ) ( 436 ) 255 ( 80 ) 175 Less: Other comprehensive (income)/loss ( 2 ) — ( 2 ) 1 — 1 ( 2 ) — ( 2 ) Other comprehensive (loss)/income attributable $ ( 372 ) $ 137 $ ( 235 ) $ ( 417 ) $ ( 18 ) $ ( 435 ) $ 253 $ ( 80 ) $ 173 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss, net of non-controlling interests and net of tax are provided in the following table. This table excludes amounts attributable to non-controlling interests, which are not material for further disclosure. Foreign currency Derivative (i) Defined pension (ii) Total Balance, January 1, 2021 $ ( 400 ) $ 9 $ ( 1,968 ) $ ( 2,359 ) Other comprehensive (loss)/income before reclassifications ( 133 ) 9 191 67 Loss/(gain) reclassified from accumulated other 12 ) (iii) 44 ( 7 ) 69 106 Net other comprehensive (loss)/income ( 89 ) 2 260 173 Balance, December 31, 2021 $ ( 489 ) $ 11 $ ( 1,708 ) $ ( 2,186 ) Other comprehensive (loss)/income before reclassifications ( 498 ) ( 3 ) 41 ( 460 ) Loss reclassified from accumulated other 9 ) — 1 24 25 Net other comprehensive (loss)/income ( 498 ) ( 2 ) 65 ( 435 ) Balance, December 31, 2022 $ ( 987 ) $ 9 $ ( 1,643 ) $ ( 2,621 ) Other comprehensive income/(loss) before reclassifications 171 2 ( 444 ) ( 271 ) Loss reclassified from accumulated other 11 ) — — 36 36 Net other comprehensive income/(loss) 171 2 ( 408 ) ( 235 ) Balance, December 31, 2023 $ ( 816 ) $ 11 $ ( 2,051 ) $ ( 2,856 ) (i) Reclassification adjustments from accumulated other comprehensive loss related to derivative instruments are included in Revenue and Salaries and benefits in the accompanying consolidated statements of comprehensive income. See Note 10 — Derivative Financial Instruments for additional details regarding the reclassification adjustments for the derivative settlements. (ii) Reclassification adjustments from accumulated other comprehensive loss are included in the computation of net periodic pension cost (see Note 13 — Retirement Benefits). These components are included in Other income, net in the accompanying consolidated statements of comprehensive income. (iii) Includes reclassifications in 2021 of $ 44 million and $ 31 million of foreign currency translation and defined pension and post-retirement benefit costs, respectively, attributable to the gain on disposal of our Miller business (see Note 3 — Acquisitions and Divestitures). The net gain on disposal is included in Other income, net in the accompanying consolidated statements of comprehensive income. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Assumptions | The assumptions noted in the table below represent the weighted-average of each assumption for each grant during the year. Year ended 2021 Expected volatility 29.1 % Expected dividend yield — % Expected life (years) 2.9 Risk-free interest rate 0.3 % |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of time-based and performance-based RSU activity under the plans at December 31, 2023, and changes during the year then ended, is presented below: Shares Weighted- Time-based RSUs Balance as of December 31, 2022 412 $ 237.23 Granted 156 $ 231.33 Vested ( 122 ) $ 233.20 Forfeited ( 24 ) $ 239.67 Balance as of December 31, 2023 422 $ 236.08 Performance-based RSUs Balance as of December 31, 2022 588 $ 266.39 Granted 231 $ 232.98 Vested ( 273 ) $ 259.54 Forfeited ( 29 ) $ 267.36 Balance as of December 31, 2023 517 $ 255.01 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share are as follows: Years ended December 31, 2023 2022 2021 Income from continuing operations $ 1,064 $ 1,064 $ 2,156 Less: income attributable to non-controlling interests ( 9 ) ( 15 ) ( 14 ) Income from continuing operations attributable to WTW $ 1,055 $ 1,049 $ 2,142 (Loss)/income from discontinued operations, net of tax $ — $ ( 40 ) $ 2,080 Basic weighted-average number of shares outstanding 105 112 128 Dilutive effect of potentially issuable shares 1 — 1 Diluted weighted-average number of shares outstanding 106 112 129 Basic earnings per share from continuing operations attributable to WTW $ 10.01 $ 9.36 $ 16.68 Dilutive effect of potentially issuable shares ( 0.06 ) ( 0.02 ) ( 0.05 ) Diluted earnings per share from continuing operations attributable to WTW $ 9.95 $ 9.34 $ 16.63 Basic (loss)/earnings per share from discontinued operations, net of tax $ — $ ( 0.36 ) $ 16.20 Dilutive effect of potentially issuable shares — — ( 0.05 ) Diluted (loss)/earnings per share from discontinued operations, net of tax $ — $ ( 0.36 ) $ 16.15 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures Regarding Cash Flow Information and Non-cash Flow Investing and Financing Activities | Supplemental disclosures regarding cash flow information and non-cash investing and financing activities are as follows: As of and for the years ended December 31, 2023 2022 2021 Supplemental disclosures of cash flow information: Cash and cash equivalents $ 1,424 $ 1,262 $ 4,486 Fiduciary funds (included in fiduciary assets) 2,368 3,459 3,203 Cash and cash equivalents and fiduciary funds (included in current assets held — — 2 Total cash, cash equivalents and restricted cash $ 3,792 $ 4,721 $ 7,691 Increase/(decrease) in cash, cash equivalents and other restricted cash $ 163 $ ( 3,177 ) $ 2,425 (Decrease)/increase in fiduciary funds ( 1,103 ) 371 ( 908 ) Total $ ( 940 ) $ ( 2,806 ) $ 1,517 Cash payments for income taxes, net $ 348 $ 428 $ 570 Cash payments for interest $ 223 $ 201 $ 212 Cash acquired $ — $ 30 $ 5 Supplemental disclosures of non-cash investing and financing activities: Non-cash consideration received $ — $ 63 $ — Fair value of deferred and contingent consideration related to acquisitions $ 3 $ 28 $ 21 |
Nature of Operations (Details)
Nature of Operations (Details) | Dec. 31, 2023 Employee Country |
Minority Interest [Line Items] | |
Number of employees employed | Employee | 48,000 |
Number of countries in which entity operates (more than 140) | Country | 140 |
Basis of Presentation, Signif_4
Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements - Narrative (Details) $ in Millions | 12 Months Ended | |||
Jul. 26, 2021 USD ($) | Dec. 31, 2023 USD ($) Unit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Unencumbered and available funds required | $ 1,424 | $ 1,262 | $ 4,486 | |
Percentage of lease denominated in U.S. dollars, Pounds Sterling or Euros | 90% | |||
Number of reporting units | Unit | 7 | |||
Termination Of Proposed Combination With A O N Plc [Member] | Contract Termination [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Termination payment | $ 1,000 | $ 1,000 | ||
Other [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Portion of Revenue | 6% | 6% | 6% | |
Reimbursed Expenses [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Portion of Revenue | 1% | 1% | 1% | |
Buildings [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Useful life | 50 years | |||
Minimum [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Percentage of entity voting rights | 50% | |||
Real estate lease term | 3 years | |||
Minimum [Member] | Broking [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Portion of Revenue | 47% | 47% | 47% | |
Minimum [Member] | Consulting [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Portion of Revenue | 32% | 32% | 32% | |
Minimum [Member] | Outsourced administration [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Portion of Revenue | 12% | 12% | 12% | |
Minimum [Member] | Internally developed software [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Useful life | 3 years | |||
Minimum [Member] | Furniture, equipment and software [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Useful life | 3 years | |||
Minimum [Member] | Willis Limited [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Unencumbered and available funds required | $ 105 | |||
Unencumbered and available cash balance required | $ 66 | |||
Maximum [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Real estate lease term | 11 years | |||
Term for renewal commissions expected | 25 years | |||
Maximum [Member] | Broking [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Portion of Revenue | 48% | 48% | 48% | |
Maximum [Member] | Consulting [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Portion of Revenue | 33% | 33% | 33% | |
Maximum [Member] | Outsourced administration [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Portion of Revenue | 13% | 13% | 13% | |
Maximum [Member] | Internally developed software [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Useful life | 10 years | |||
Maximum [Member] | Furniture, equipment and software [Member] | ||||
Significant Accounting Policies And Recent Accounting Pronouncements [Line Items] | ||||
Useful life | 10 years |
Basis of Presentation, Signif_5
Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements - Schedule of Acquired Intangible Assets Amortized (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Minimum [Member] | Client relationships [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Expected life | 3 years |
Minimum [Member] | Software [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Expected life | 5 years |
Minimum [Member] | Trademark and trade name [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Expected life | 5 years |
Minimum [Member] | Other [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Expected life | 5 years |
Maximum [Member] | Client relationships [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Expected life | 21 years |
Maximum [Member] | Software [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Expected life | 9 years |
Maximum [Member] | Trademark and trade name [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Expected life | 25 years |
Maximum [Member] | Other [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Expected life | 11 years |
Acquisitions and Divestitures -
Acquisitions and Divestitures - (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combinations [Abstract] | |||
Acquisitions, cash payment | $ 56 | $ 111 | $ 52 |
Contingent consideration fair value | $ 3 | $ 28 | $ 21 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Divestment of Russian Business (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Deconsolidation gain or loss amount | $ (57) | |||
Impairment | $ 0 | $ 81 | $ 0 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Willis Re Divestiture (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Jun. 01, 2023 | Oct. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 01, 2021 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Net (gain)/loss on disposal of operations | $ (43) | $ 59 | $ (2,679) | ||||||
Cash outflow of cash and non-fiduciary cash related to settlement. | 922 | 29 | 1,030 | ||||||
Cash outflow of cash and fiduciary cash related to settlement. | 922 | 29 | $ 1,030 | ||||||
Gallagher [Member] | Transition Services Agreement [Member] | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Fees earned under service agreement | $ 36 | 45 | |||||||
Willis Re SAPA [Member] | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Total consideration received from sale of subsidiary | $ 3,250 | ||||||||
Net (gain)/loss on disposal of operations | $ (5) | $ 60 | $ (2,300) | ||||||
Fiduciary assets excluded from held-for-sale | 3,200 | ||||||||
Accounts receivable, net balances excluded from held-for-sale | 29 | ||||||||
Other current liabilities excluded from held for sale | $ 73 | ||||||||
Value of remaining settlement amount | $ 11 | ||||||||
Willis Re SAPA [Member] | Maximum [Member] | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Earnout receivable in cash in 2025 | $ 750 | ||||||||
Willis Re SAPA [Member] | Gallagher [Member] | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Value of Obligation in Initial Transfer | $ 74 | ||||||||
Value of receivables in initial transfer | 26 | ||||||||
Cash outflow of cash and non-fiduciary cash related to settlement. | 916 | ||||||||
Cash outflow of cash and fiduciary cash related to settlement. | 916 | ||||||||
Fiduciary assets transferred | 4,500 | ||||||||
Willis Re SAPA [Member] | Gallagher [Member] | Fiduciary Cash [Member] | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Cash outflow of cash and non-fiduciary cash related to settlement. | 868 | ||||||||
Cash outflow of cash and fiduciary cash related to settlement. | 868 | ||||||||
Willis Re SAPA [Member] | Gallagher [Member] | Non-Fiduciary Cash [Member] | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Cash outflow of cash and non-fiduciary cash related to settlement. | 48 | ||||||||
Cash outflow of cash and fiduciary cash related to settlement. | $ 48 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Schedule of Selected Financial Information Relates to the Operations of Willis Re (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Transaction and transformation | $ 386 | $ 181 | $ (806) |
(Loss)/gain on disposal of Willis Re | 43 | (59) | 2,679 |
(Loss)/income from discontinued operations, net of tax | $ 0 | (40) | 2,080 |
Willis Re [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Revenue from discontinued operations | 48 | 721 | |
Salaries and benefits | 14 | 350 | |
Other operating expenses | 10 | 59 | |
Depreciation and amortization | 0 | 2 | |
Transaction and transformation | 0 | 33 | |
Total costs of providing services | 24 | 444 | |
Other income, net | 5 | 2 | |
Income from discontinued operations before income taxes | 29 | 279 | |
(Loss)/gain on disposal of Willis Re | (65) | 2,300 | |
Benefit from/(provision for) income tax expense | 1 | (500) | |
Net income (payable to)/receivable from Gallagher on Deferred Closing | (5) | 1 | |
(Loss)/income from discontinued operations, net of tax | $ (40) | $ 2,080 |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Miller Divestiture (Details) £ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 01, 2021 USD ($) | Mar. 01, 2021 GBP (£) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Tax exempt gain on sale | $ 43 | $ (59) | $ 2,679 | ||
Miller [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Final total consideration received from sale of subsidiary | $ 818 | £ 623 | |||
Miller [Member] | Other Income, Net [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Tax exempt gain on sale | $ 356 |
Acquisitions and Divestitures_6
Acquisitions and Divestitures - Other Disposals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Cash proceeds from other disposal | $ 89 | $ 1 | $ 75 |
Non-cash proceeds from other disposal | 0 | 63 | 0 |
Gain on disposal | $ 38 | $ 64 | $ 26 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 9,304 | $ 8,726 | $ 8,826 | |
Reimbursable expenses and other | [1] | 102 | 77 | 43 |
Interest and other income | 179 | 140 | 172 | |
Total revenue | 9,483 | 8,866 | 8,998 | |
HWC [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,625 | 5,312 | 5,291 | |
Reimbursable expenses and other | [1] | 73 | 64 | 60 |
Interest and other income | 30 | 39 | 37 | |
Total revenue | 5,655 | 5,351 | 5,328 | |
R&B [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,641 | 3,395 | 3,476 | |
Reimbursable expenses and other | [1] | 13 | 11 | 7 |
Interest and other income | 107 | 76 | 95 | |
Total revenue | 3,748 | 3,471 | 3,571 | |
Divested Businesses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 71 | |
Reimbursable expenses and other | [1] | 0 | 0 | 0 |
Interest and other income | 0 | 0 | 35 | |
Total revenue | [2] | 0 | 0 | 106 |
Corporate [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 38 | 19 | (12) |
Reimbursable expenses and other | [1] | 16 | 2 | (24) |
Interest and other income | [1] | 42 | 25 | 5 |
Total revenue | [1] | 80 | 44 | (7) |
Broking [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,486 | 4,167 | 4,182 | |
Broking [Member] | HWC [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,531 | 1,415 | 1,295 | |
Broking [Member] | R&B [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,947 | 2,745 | 2,822 | |
Broking [Member] | Divested Businesses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 65 | |
Broking [Member] | Corporate [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 8 | 7 | 0 |
Consulting [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,986 | 2,902 | 2,936 | |
Consulting [Member] | HWC [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,594 | 2,522 | 2,538 | |
Consulting [Member] | R&B [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 378 | 370 | 384 | |
Consulting [Member] | Divested Businesses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 6 | |
Consulting [Member] | Corporate [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 14 | 10 | 8 |
Outsourced administration [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,159 | 1,054 | 1,134 | |
Outsourced administration [Member] | HWC [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,078 | 979 | 1,046 | |
Outsourced administration [Member] | R&B [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 81 | 75 | 88 | |
Outsourced administration [Member] | Divested Businesses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | |
Outsourced administration [Member] | Corporate [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 0 | 0 | 0 |
Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 571 | 526 | 531 | |
Other [Member] | HWC [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 349 | 332 | 352 | |
Other [Member] | R&B [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 222 | 194 | 175 | |
Other [Member] | Divested Businesses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | |
Other [Member] | Corporate [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 0 | 0 | 4 |
Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,202 | 8,649 | 8,783 | |
Service [Member] | HWC [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,552 | 5,248 | 5,231 | |
Service [Member] | R&B [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,628 | 3,384 | 3,469 | |
Service [Member] | Divested Businesses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 71 | |
Service [Member] | Corporate [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | $ 22 | $ 17 | $ 12 |
[1] Reimbursable expenses and other, as well as Corporate revenue, are excluded from segment revenue, but included in total revenue on the consolidated statements of comprehensive income. Amounts included in Corporate revenue may include eliminations, adjustments to reserves and impacts from hedged revenue transactions. Represents the revenue and income from operations of certain Investment, Risk and Reinsurance businesses which were divested in 2021 and not classified as discontinued operations. |
Revenue - Schedule of Component
Revenue - Schedule of Components of Interest and Other Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | ||||
Book-of-business settlements | $ 26 | $ 71 | $ 134 | |
Interest income | 145 | 55 | 12 | |
Other income | 8 | 14 | 26 | |
Total interest and other income | 179 | 140 | 172 | |
HWC [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Book-of-business settlements | 1 | 19 | 17 | |
Interest income | 25 | 8 | 2 | |
Other income | 4 | 12 | 18 | |
Total interest and other income | 30 | 39 | 37 | |
R&B [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Book-of-business settlements | 25 | 52 | 82 | |
Interest income | 79 | 25 | 11 | |
Other income | 3 | (1) | 2 | |
Total interest and other income | 107 | 76 | 95 | |
Divested Businesses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Book-of-business settlements | 0 | 0 | 35 | |
Interest income | 0 | 0 | 0 | |
Other income | 0 | 0 | 0 | |
Total interest and other income | 0 | 0 | 35 | |
Corporate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Book-of-business settlements | 0 | 0 | 0 | |
Interest income | 41 | 22 | (1) | |
Other income | 1 | 3 | 6 | |
Total interest and other income | [1] | $ 42 | $ 25 | $ 5 |
[1] Reimbursable expenses and other, as well as Corporate revenue, are excluded from segment revenue, but included in total revenue on the consolidated statements of comprehensive income. Amounts included in Corporate revenue may include eliminations, adjustments to reserves and impacts from hedged revenue transactions. |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Geography (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 9,304 | $ 8,726 | $ 8,826 | |
Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,202 | 8,649 | 8,783 | |
Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,202 | 8,649 | 8,783 | |
North America [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,146 | 4,904 | 4,776 | |
Europe [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,042 | 2,802 | 3,055 | |
International [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,014 | 943 | 952 | |
HWC [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,625 | 5,312 | 5,291 | |
HWC [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,552 | 5,248 | 5,231 | |
HWC [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,552 | 5,248 | 5,231 | |
HWC [Member] | North America [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,738 | 3,569 | 3,456 | |
HWC [Member] | Europe [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,362 | 1,266 | 1,376 | |
HWC [Member] | International [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 452 | 413 | 399 | |
R&B [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,641 | 3,395 | 3,476 | |
R&B [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,628 | 3,384 | 3,469 | |
R&B [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,628 | 3,384 | 3,469 | |
R&B [Member] | North America [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,400 | 1,328 | 1,295 | |
R&B [Member] | Europe [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,668 | 1,527 | 1,623 | |
R&B [Member] | International [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 560 | 529 | 551 | |
Divested Businesses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 71 | |
Divested Businesses [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 71 | |
Divested Businesses [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 71 | |
Divested Businesses [Member] | North America [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 17 | |
Divested Businesses [Member] | Europe [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 53 | |
Divested Businesses [Member] | International [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 1 | |
Corporate [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 38 | 19 | (12) |
Corporate [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 22 | 17 | 12 |
Corporate [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 22 | 17 | 12 | |
Corporate [Member] | North America [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 8 | 7 | 8 | |
Corporate [Member] | Europe [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 12 | 9 | 3 | |
Corporate [Member] | International [Member] | Operating Segments [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2 | $ 1 | $ 1 | |
[1] Reimbursable expenses and other, as well as Corporate revenue, are excluded from segment revenue, but included in total revenue on the consolidated statements of comprehensive income. Amounts included in Corporate revenue may include eliminations, adjustments to reserves and impacts from hedged revenue transactions. |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Balances (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Billed Receivable, Current | $ 1,581 | $ 1,464 |
Unbilled Receivable, Current | 491 | 457 |
Contract asset, Current | 500 | 466 |
Accounts receivable, net | 2,572 | 2,387 |
Non-current accounts receivable, net | 19 | 9 |
Non-current contract assets | 909 | 745 |
Deferred revenue | $ 677 | $ 646 |
Revenue - Schedule of Contrac_2
Revenue - Schedule of Contract Balances (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Allowance for doubtful debts | $ 34 | $ 46 |
Revenue - Schedule of Changes i
Revenue - Schedule of Changes in Allowance for Doubtful Accounts (Details) - Allowance for doubtful accounts [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 46 | $ 45 | $ 40 |
Additions charged to costs and expenses | 6 | 14 | 16 |
Deductions/other movements | (21) | (20) | (18) |
Foreign exchange | 3 | 7 | 7 |
Balance at end of year | $ 34 | $ 46 | $ 45 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 32 |
Dec 31, 2022 [Member] | |
Disaggregation Of Revenue [Line Items] | |
Contract with Customer, Liability, Revenue Recognized | $ 502 |
Revenue - Schedule of Remaining
Revenue - Schedule of Remaining Performance Obligations (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 1,321 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 490 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 371 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 460 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue - Schedule of Remaini_2
Revenue - Schedule of Remaining Performance Obligations (Details1) $ in Millions | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,321 |
Revenue - Schedule of Capitaliz
Revenue - Schedule of Capitalized and Deferred Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capitalized Contract Cost [Abstract] | |||
Capitalized Contract Cost, Net | $ 197 | $ 189 | $ 191 |
Capitalized Contract Cost, Additions | 458 | 421 | 454 |
Capitalized Contract Cost, Amortization | (441) | (407) | (451) |
Capitalized Contract Cost, Disposals | 0 | 0 | (4) |
Capitalized Contract Cost, Impairment Loss | 0 | 0 | (1) |
Capitalized Contract Cost, Foreign Exchange Translation Gain (Loss) | 4 | (6) | 0 |
Capitalized Contract Cost, Net | $ 218 | $ 197 | $ 189 |
Segment Information - Narrative
Segment Information - Narrative (Details) - Segment | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 2 | ||
Revenue from Rights Concentration Risk [Member] | Revenue Benchmark [Member] | Minimum [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10% | 10% | 10% |
Segment Information - Revenue (
Segment Information - Revenue (Net of Reimbursable Expenses) of the Reported Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 9,483 | $ 8,866 | $ 8,998 |
Income from operations | 1,365 | 1,178 | 2,202 |
HWC [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,655 | 5,351 | 5,328 |
R&B [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,748 | 3,471 | 3,571 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9,317 | 8,747 | 8,832 |
Income from operations | 2,378 | 2,116 | 2,181 |
Operating Segments [Member] | HWC [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,582 | 5,287 | 5,268 |
Income from operations | 1,565 | 1,382 | 1,346 |
Operating Segments [Member] | R&B [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,735 | 3,460 | 3,564 |
Income from operations | $ 813 | $ 734 | $ 835 |
Segment Information - Reconcili
Segment Information - Reconciliation of Information Reported by Segment to Consolidated Amounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenue: | ||||
Revenue | $ 9,483 | $ 8,866 | $ 8,998 | |
Impairment | 0 | (81) | 0 | |
Amortization | (263) | (312) | (369) | |
Restructuring costs | (68) | (99) | (26) | |
Income/(loss) from operations | 1,365 | 1,178 | 2,202 | |
Interest expense | (235) | (208) | (211) | |
Other income, net | 149 | 288 | 701 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 1,279 | 1,258 | 2,692 | |
Divested Businesses [Member] | ||||
Revenue: | ||||
Revenue | [1] | 0 | 0 | 106 |
Operating Segments [Member] | ||||
Revenue: | ||||
Revenue | 9,317 | 8,747 | 8,832 | |
Income/(loss) from operations | 2,378 | 2,116 | 2,181 | |
Segment Reconciling Items [Member] | ||||
Revenue: | ||||
Revenue | 166 | 119 | 60 | |
Divested businesses | [1] | 0 | 0 | (24) |
Impairment | [2] | 0 | (81) | 0 |
Amortization | (263) | (312) | (369) | |
Restructuring costs | [3] | (68) | (99) | (26) |
Transaction and transformation, net | [4] | (386) | (181) | 806 |
Unallocated, net | [5] | (296) | (265) | (366) |
Income/(loss) from operations | 1,365 | 1,178 | 2,202 | |
Interest expense | (235) | (208) | (211) | |
Other income, net | $ 149 | $ 288 | $ 701 | |
[1] Represents the revenue and income from operations of certain Investment, Risk and Reinsurance businesses which were divested in 2021 and not classified as discontinued operations. Represents the impairment related to the net assets of our Russian business that are held outside of our Russian entities (see Note 3 — Acquisitions and Divestitures for further information). See Note 6 — Restructuring Costs for the composition of costs for 2023, 2022 and 2021. In 2023 and 2022, in addition to legal fees and other transaction costs, includes primarily consulting fees and compensation costs related to the Transformation program (see Note 6 — Restructuring Costs). For the year ended December 31, 2021, includes the $ 1 billion income receipt related to the termination of, and fees related to, the then-proposed Aon combination. Includes certain costs, primarily related to corporate functions which are not directly related to the segments, and certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes. |
Segment Information - Reconci_2
Segment Information - Reconciliation of Information Reported by Segment to Consolidated Amounts (Parenthetical) (Details) - USD ($) $ in Billions | 12 Months Ended | |
Jul. 26, 2021 | Dec. 31, 2021 | |
Termination Agreement [Member] | Termination of Proposed Combination with AON Plc [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Termination payment | $ 1 | $ 1 |
Segment Information - Revenue a
Segment Information - Revenue and Tangible Long-lived Assets by Geographical Areas (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 9,483 | $ 8,866 | $ 8,998 | |
Long-Lived Assets | [1] | 1,285 | 1,304 | |
Ireland [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 118 | 130 | 197 | |
Long-Lived Assets | [1] | 10 | 11 | |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 5,011 | 4,760 | 4,621 | |
Long-Lived Assets | [1] | 408 | 465 | |
United Kingdom [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 1,723 | 1,563 | 1,632 | |
Long-Lived Assets | [1] | 512 | 496 | |
Rest of World [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 2,631 | 2,413 | 2,548 | |
Long-Lived Assets | [1] | 355 | 332 | |
Total Foreign Countries [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 9,365 | 8,736 | $ 8,801 | |
Long-Lived Assets | [1] | $ 1,275 | $ 1,293 | |
[1] Tangible long-lived assets consist of fixed assets and ROU assets. |
Restructuring Costs - Narrative
Restructuring Costs - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Transaction and transformation | $ 386 | $ 181 | $ (806) |
Transformation Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, description | In the fourth quarter of 2021, the Company initiated a three-year ‘Transformation program’ designed to enhance operations, optimize technology and align its real estate footprint to its new ways of working. | ||
Restructuring, Expected future effects | $ 1,125 | ||
Transaction and transformation | 347 | $ 136 | $ 0 |
Transformation Program [Member] | Projected Annual Cost Savings by End of 2024 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Annual cost savings of program | 425 | ||
Transformation Program [Member] | Cumulative Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, Expected future effects | 995 | ||
Transformation Program [Member] | Capital Expenditures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, Expected future effects | $ 130 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Total Restructuring Costs (Details) - Transformation Program [Member] - USD ($) $ in Millions | 12 Months Ended | 27 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total | $ 193 | |||
Real Estate Rationalization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | $ 46 | $ 79 | $ 19 | 144 |
Technology Modernization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 22 | 19 | 5 | 46 |
Process Optimization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 1 | 1 | ||
Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 2 | 2 | ||
Corporate, Non-Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 177 | |||
Corporate, Non-Segment | Real Estate Rationalization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 46 | 79 | 19 | 144 |
Corporate, Non-Segment | Technology Modernization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 15 | 16 | 31 | |
Corporate, Non-Segment | Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 2 | 2 | ||
HWC [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 3 | |||
HWC [Member] | Technology Modernization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 2 | 2 | ||
HWC [Member] | Process Optimization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 1 | 1 | ||
R&B [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 13 | |||
R&B [Member] | Technology Modernization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | $ 5 | $ 3 | $ 5 | $ 13 |
Restructuring Costs - Rollforwa
Restructuring Costs - Rollforward of Liability Associated with Cash-based Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Charges incurred | $ 68 | $ 99 | $ 26 | |
Transformation Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | $ 0 | 6 | 1 | |
Charges incurred | 2 | 30 | 28 | |
Cash payments | (1) | (25) | (23) | |
Ending Balance | 1 | 11 | 6 | 1 |
Transformation Program [Member] | Real Estate Rationalization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | 6 | |||
Charges incurred | 22 | 27 | ||
Cash payments | (25) | (21) | ||
Ending Balance | 3 | 6 | ||
Transformation Program [Member] | Technology Modernization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges incurred | 8 | |||
Ending Balance | 8 | |||
Transformation Program [Member] | Process Optimization [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges incurred | 1 | |||
Cash payments | (1) | |||
Transformation Program [Member] | Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | 0 | 1 | ||
Charges incurred | 2 | |||
Cash payments | (1) | $ (1) | ||
Ending Balance | $ 1 | $ 0 | $ 1 |
Income Taxes - Income (Loss) fr
Income Taxes - Income (Loss) from Operations Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income from Continuing Operations before Income Taxes and Interest in Earnings of Associates [Line Items] | |||
INCOME FROM OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | $ 1,279 | $ 1,258 | $ 2,692 |
Revenue Commissioners, Ireland [Member] | Domestic Tax Authority [Member] | |||
Income from Continuing Operations before Income Taxes and Interest in Earnings of Associates [Line Items] | |||
INCOME FROM OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 14 | (160) | 673 |
Internal Revenue Service (IRS) [Member] | Foreign Tax Authority [Member] | |||
Income from Continuing Operations before Income Taxes and Interest in Earnings of Associates [Line Items] | |||
INCOME FROM OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 348 | 394 | 516 |
Her Majesty's Revenue and Customs (HMRC) [Member] | Foreign Tax Authority [Member] | |||
Income from Continuing Operations before Income Taxes and Interest in Earnings of Associates [Line Items] | |||
INCOME FROM OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | (93) | 142 | 552 |
Rest of World [Member] | Foreign Tax Authority [Member] | |||
Income from Continuing Operations before Income Taxes and Interest in Earnings of Associates [Line Items] | |||
INCOME FROM OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | $ 1,010 | $ 882 | $ 951 |
Income Taxes - Provision for be
Income Taxes - Provision for benefit from income taxes from continuing operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax expense: | |||
U.S. federal taxes | $ (106) | $ (103) | $ (79) |
U.S. state and local taxes | (41) | (39) | (25) |
U.K. corporation tax | (40) | (13) | (33) |
Other jurisdictions | (137) | (93) | (303) |
Total current tax expense | (324) | (248) | (440) |
Deferred tax benefit/(expense): | |||
U.S. federal taxes | 20 | 52 | (41) |
U.S. state and local taxes | 15 | (5) | 3 |
U.K. corporation tax | 63 | (7) | (65) |
Other jurisdictions | 11 | 14 | 7 |
Total deferred tax benefit/(expense) | 109 | 54 | (96) |
Total provision for income taxes | $ (215) | $ (194) | $ (536) |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | $ 1,279 | $ 1,258 | $ 2,692 |
U.S. federal statutory income tax rate | 21% | 21% | 21% |
Income tax expense at U.S. federal tax rate | $ (269) | $ (264) | $ (565) |
Non-deductible expenses and dividends | (24) | (19) | (15) |
Net adjustments on acquisition costs | (1) | (4) | 13 |
Impact of change in rate on deferred tax balances | 10 | (1) | (36) |
Effect of foreign exchange and other differences | 1 | 28 | 0 |
Changes in valuation allowances | (2) | 1 | 2 |
Net tax effect on intra-group items | 94 | 84 | 84 |
Net tax effect on disposal of operations | 6 | 1 | 62 |
Tax differentials of non-U.S. jurisdictions | 8 | 20 | (24) |
Impact of U.S. state and local taxes | (26) | (42) | (23) |
Global Intangible Low-Taxed Income (GILTI) | (9) | (10) | (4) |
Subpart F Income | (5) | (6) | (6) |
Base Erosion Anti-Abuse Tax (BEAT) | 13 | 24 | (22) |
Tax on unremitted earnings | (12) | (14) | 0 |
Other items, net | 1 | 8 | (2) |
Total provision for income taxes | $ (215) | $ (194) | $ (536) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Accrued expenses not currently deductible | $ 76 | $ 69 |
Interest carryforwards | 276 | 174 |
Net operating losses | 44 | 44 |
Capital loss carryforwards | 1 | 1 |
Accrued retirement benefits | 150 | 85 |
Operating lease liabilities | 120 | 125 |
Deferred compensation | 93 | 97 |
Share-based compensation | 25 | 18 |
Financial derivative transactions | 2 | 4 |
Gross deferred tax assets | 787 | 617 |
Less: valuation allowance | (35) | (28) |
Net deferred tax assets | 752 | 589 |
Deferred tax liabilities: | ||
Cost of intangible assets, net of related amortization | 604 | 679 |
Operating lease right-of-use assets | 103 | 106 |
Cost of tangible assets, net of related depreciation | 24 | 44 |
Prepaid retirement benefits | 129 | 142 |
Accrued revenue not currently taxable | 319 | 262 |
Unremitted earnings | 29 | 36 |
Deferred tax liabilities | 1,208 | 1,269 |
Net deferred tax liabilities | $ 456 | $ 680 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Expense Benefit | $ 215 | $ 194 | $ 536 | |
U.S. statutory tax rate | 21% | 21% | 21% | |
Net operating losses | $ 44 | $ 44 | ||
Deferred Tax Assets, Net of Valuation Allowance | 752 | 589 | ||
Increase (decrease) in valuation allowance | 7 | (14) | $ (42) | |
Valuation allowance | 35 | 28 | ||
Unrecognized tax benefits | 51 | 47 | 43 | $ 50 |
Undistributed earnings | 17,900 | |||
Reduction in liability for unrecognized tax benefits | (3) | (3) | (3) | |
Interest on income taxes accrued | 6 | 5 | ||
Continuing Operation [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax expense includes in interest expense | 1 | 1 | ||
State Apportionment [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Expense Benefit | (20) | |||
BEAT [Member] | Tax Year 2019 and 2020 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Expense Benefit | (34) | |||
Termination Payment [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Expense Benefit | 250 | |||
Foreign exchange remeasurement on income tax account balances | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Expense Benefit | $ (22) | |||
Remeasurement of Deferred Tax Assets and Liabilities [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Expense Benefit | (10) | $ 40 | ||
Reinvested Indefinitely [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Undistributed earnings | 10,300 | |||
Untaxable Manner [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Undistributed earnings | 7,600 | |||
U.S. State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, valuation allowance | 12 | |||
Non-US [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, valuation allowance | 13 | |||
State and Local [Member] | United States [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating losses | 419 | |||
Operating loss carryforwards, not subject to expiration | 21 | |||
State and Local [Member] | United States [Member] | Tax Year 2024 Through 2043 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, subject to expiration | 398 | |||
U.S. Federal and Non-U.S. [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating losses | 116 | |||
Operating loss carryforwards, not subject to expiration | 72 | |||
U.S. Federal and Non-U.S. [Member] | Tax Year 2024 Through 2043 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, subject to expiration | $ 44 | |||
Revenue Commissioners, Ireland [Member] | Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Foreign statutory income tax rate | 25% | |||
Minimum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Expected decrease in liability for uncertain tax position | $ 1 | |||
Minimum [Member] | Her Majesty's Revenue and Customs (HMRC) [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Foreign statutory tax rate | 19% | |||
Maximum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Expected decrease in liability for uncertain tax position | $ 2 | |||
Maximum [Member] | Her Majesty's Revenue and Customs (HMRC) [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Foreign statutory tax rate | 25% |
Income Taxes - Deferred Tax Lia
Income Taxes - Deferred Tax Liabilities, Balance Sheet Classification (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Tax Credit Carryforward [Line Items] | ||
Other non-current assets | $ 752 | $ 589 |
Deferred tax liabilities | 1,208 | 1,269 |
Net deferred tax liabilities | 456 | 680 |
Other Non-current Assets [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Other non-current assets | 86 | 68 |
Deferred Tax Liabilities [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Deferred tax liabilities | $ 542 | $ 748 |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 28 | $ 42 | $ 84 |
Additions charged to costs and expenses | 10 | 8 | 3 |
Deductions | (3) | (22) | (45) |
Balance at end of year | $ 35 | $ 28 | $ 42 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 47 | $ 43 | $ 50 |
Increases related to tax positions in prior years | 13 | 16 | 0 |
Decreases related to tax positions in prior years | (9) | (2) | 0 |
Increases related to tax positions in current year | 3 | 0 | 0 |
Decreases related to settlements | 0 | (1) | 0 |
Decreases related to lapse in statute of limitations | (4) | (6) | (6) |
Cumulative translation adjustment and other adjustments | 1 | (3) | (1) |
Balance at end of year | $ 51 | $ 47 | $ 43 |
Income Taxes - Summary of Tax Y
Income Taxes - Summary of Tax Years that Remain Open to Tax Examination in Major Tax Jurisdictions (Details) | 12 Months Ended |
Dec. 31, 2023 | |
U.S. - Federal [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Years | 2018 and forward |
State and Local [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Years | 2015 and forward |
Foreign Tax Authority [Member] | United Kingdom [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Years | 2014 and forward |
Foreign Tax Authority [Member] | Ireland [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Years | 2019 and forward |
Foreign Tax Authority [Member] | France [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Years | 2017 and forward |
Foreign Tax Authority [Member] | Germany [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Years | 2008 and forward |
Foreign Tax Authority [Member] | Canada - Federal [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Years | 2016 and forward |
Fixed Assets - Components of Fi
Fixed Assets - Components of Fixed Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Movement in Property, Plant and Equipment [Roll Forward] | |||
Cost: at beginning of period | $ 1,987 | $ 2,092 | |
Additions | 251 | 198 | |
Acquisitions | 1 | ||
Disposals | [1] | (216) | (207) |
Foreign exchange | 49 | (97) | |
Cost: at end of period | 2,071 | 1,987 | |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | |||
Depreciation: at beginning of period | (1,269) | (1,241) | |
Depreciation expense | (242) | (255) | |
Disposals | 189 | 170 | |
Foreign exchange | (29) | 57 | |
Depreciation: at end of period | (1,351) | (1,269) | |
Fixed assets, net | 720 | 718 | |
Furniture, equipment and software [Member] | |||
Movement in Property, Plant and Equipment [Roll Forward] | |||
Cost: at beginning of period | 1,452 | 1,477 | |
Additions | 219 | 174 | |
Acquisitions | 1 | ||
Disposals | [1] | (182) | (129) |
Foreign exchange | 38 | (71) | |
Cost: at end of period | 1,527 | 1,452 | |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | |||
Depreciation: at beginning of period | (933) | (877) | |
Depreciation expense | (202) | (211) | |
Disposals | 164 | 113 | |
Foreign exchange | (23) | 42 | |
Depreciation: at end of period | (994) | (933) | |
Fixed assets, net | 533 | 519 | |
Leasehold Improvements [Member] | |||
Movement in Property, Plant and Equipment [Roll Forward] | |||
Cost: at beginning of period | 452 | 527 | |
Additions | 32 | 24 | |
Acquisitions | 0 | ||
Disposals | [1] | (34) | (78) |
Foreign exchange | 9 | (21) | |
Cost: at end of period | 459 | 452 | |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | |||
Depreciation: at beginning of period | (272) | (301) | |
Depreciation expense | (37) | (40) | |
Disposals | 25 | 57 | |
Foreign exchange | (5) | 12 | |
Depreciation: at end of period | (289) | (272) | |
Fixed assets, net | 170 | 180 | |
Land and Building [Member] | |||
Movement in Property, Plant and Equipment [Roll Forward] | |||
Cost: at beginning of period | 83 | 88 | |
Additions | 0 | 0 | |
Acquisitions | 0 | ||
Disposals | [1] | 0 | 0 |
Foreign exchange | 2 | (5) | |
Cost: at end of period | 85 | 83 | |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | |||
Depreciation: at beginning of period | (64) | (63) | |
Depreciation expense | (3) | (4) | |
Disposals | 0 | 0 | |
Foreign exchange | (1) | 3 | |
Depreciation: at end of period | (68) | (64) | |
Fixed assets, net | $ 17 | $ 19 | |
[1] For 2023 and 2022, includes $ 17 million and $ 12 million, respectively, of furniture, equipment and software costs and $ 4 million and $ 18 million, respectively, of leasehold improvements costs which have been written off as part of technology modernization and real estate rationalization, respectively, under the Transformation program (see Note 6 – Restructuring Costs). |
Fixed Assets - Components of _2
Fixed Assets - Components of Fixed Assets (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Furniture, equipment and software [Member] | ||
Property,Plant and Equipment [LineItems] | ||
Cost | $ 17 | $ 12 |
Leasehold Improvements [Member] | ||
Property,Plant and Equipment [LineItems] | ||
Cost | $ 4 | $ 18 |
Fixed Assets - Assets Held Unde
Fixed Assets - Assets Held Under Finance Leases (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Finance leases | $ 26 | $ 26 |
Accumulated depreciation | (23) | (22) |
Net book value | $ 3 | $ 4 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Components of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | $ 10,665 | $ 10,675 |
Accumulated impairment losses, beginning balance | (492) | (492) |
Goodwill, net, beginning balance | 10,173 | 10,183 |
Goodwill acquired | 104 | |
Goodwill disposals | (21) | (18) |
Foreign exchange | 43 | (96) |
Goodwill, gross, ending balance | 10,687 | 10,665 |
Accumulated impairment losses, ending balance | (492) | (492) |
Goodwill, net, ending balance | 10,195 | 10,173 |
HWC [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | 7,870 | 7,904 |
Accumulated impairment losses, beginning balance | (130) | (130) |
Goodwill, net, beginning balance | 7,740 | 7,774 |
Goodwill acquired | 0 | |
Goodwill disposals | (21) | 0 |
Foreign exchange | 17 | (34) |
Goodwill, gross, ending balance | 7,866 | 7,870 |
Accumulated impairment losses, ending balance | (130) | (130) |
Goodwill, net, ending balance | 7,736 | 7,740 |
R&B [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | 2,795 | 2,771 |
Accumulated impairment losses, beginning balance | (362) | (362) |
Goodwill, net, beginning balance | 2,433 | 2,409 |
Goodwill acquired | 104 | |
Goodwill disposals | 0 | (18) |
Foreign exchange | 26 | (62) |
Goodwill, gross, ending balance | 2,821 | 2,795 |
Accumulated impairment losses, ending balance | (362) | (362) |
Goodwill, net, ending balance | $ 2,459 | $ 2,433 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes in the Net Carrying Amount of the Components of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived intangible assets, gross carrying amount | $ 5,638 | $ 5,621 | $ 5,677 |
Finite-lived intangible assets, accumulated amortization | (3,622) | (3,348) | (3,122) |
Finite-lived intangible assets, net amount | 2,016 | 2,273 | 2,555 |
Intangible assets acquired | 7 | 72 | |
Intangible asset disposals | (13) | (6) | |
Amortization | (263) | (312) | (369) |
Foreign exchange | 12 | (36) | |
Client relationships [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived intangible assets, gross carrying amount | 3,807 | 3,760 | 3,794 |
Finite-lived intangible assets, accumulated amortization | (2,514) | (2,282) | (2,118) |
Finite-lived intangible assets, net amount | 1,293 | 1,478 | 1,676 |
Intangible assets acquired | 7 | 67 | |
Intangible asset disposals | 0 | (1) | |
Amortization | (204) | (230) | |
Foreign exchange | 12 | (34) | |
Software [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived intangible assets, gross carrying amount | 729 | 725 | 742 |
Finite-lived intangible assets, accumulated amortization | (726) | (712) | (701) |
Finite-lived intangible assets, net amount | 3 | 13 | 41 |
Intangible assets acquired | 0 | 4 | |
Intangible asset disposals | 0 | 0 | |
Amortization | (10) | (31) | |
Foreign exchange | 0 | (1) | |
Trademark and trade name [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived intangible assets, gross carrying amount | 1,039 | 1,038 | 1,039 |
Finite-lived intangible assets, accumulated amortization | (342) | (298) | (257) |
Finite-lived intangible assets, net amount | 697 | 740 | 782 |
Intangible assets acquired | 0 | 1 | |
Intangible asset disposals | 0 | 0 | |
Amortization | (43) | (42) | |
Foreign exchange | 0 | (1) | |
Other [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived intangible assets, gross carrying amount | 63 | 98 | 102 |
Finite-lived intangible assets, accumulated amortization | (40) | (56) | (46) |
Finite-lived intangible assets, net amount | 23 | 42 | $ 56 |
Intangible assets acquired | 0 | 0 | |
Intangible asset disposals | (13) | (5) | |
Amortization | (6) | (9) | |
Foreign exchange | $ 0 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) | Dec. 31, 2023 |
Finite-lived Intangible Assets [Roll Forward] | |
Weighted average remaining life of amortizable intangible assets and liabilities | 11 years 8 months 12 days |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Future Estimated Amortization Expense for Amortizable Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
2024 | $ 231 | ||
2025 | 211 | ||
2026 | 202 | ||
2027 | 198 | ||
2028 | 194 | ||
Thereafter | 980 | ||
Total | $ 2,016 | $ 2,273 | $ 2,555 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Gains/losses on derivatives to be reclassified within the next twelve months | $ 1 | |
Maximum [Member] | ||
Derivative [Line Items] | ||
Longest outstanding maturity | 1 year 8 months 12 days | |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 1,200 | $ 1,700 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Derivative asset, fair values | $ 3 | $ 24 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 119 | $ 134 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | |
Derivative liability, fair values | $ 3 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | |
Derivative asset, fair values | $ 2 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Derivative Instruments Designated As Hedging Instrument Effect on Condensed Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
(Loss)/gain recognized in OCL (effective element) | $ 2 | $ (2) | $ 2 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
(Loss)/gain recognized in OCL (effective element) | 3 | (8) | 5 |
Gain/(loss) reclassified from Accumulated OCL into income (effective element) | $ (1) | $ (2) | $ 6 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | Revenue [Member] | |||
Derivative [Line Items] | |||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues | Revenues |
Gain/(loss) reclassified from Accumulated OCL into income (effective element) | $ 1 | $ 2 | $ (3) |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | Salaries and Benefits [Member] | |||
Derivative [Line Items] | |||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Labor and Related Expense | Labor and Related Expense | Labor and Related Expense |
Gain/(loss) reclassified from Accumulated OCL into income (effective element) | $ (2) | $ (4) | $ 6 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | Discontinued Operations [Member] | |||
Derivative [Line Items] | |||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX |
Gain/(loss) reclassified from Accumulated OCL into income (effective element) | $ 0 | $ 0 | $ 3 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule Of Derivative Instruments, Effect on Condensed Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other income, net [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Gain/(loss) recognized in income | $ 11 | $ (147) | $ 0 |
Debt - Schedule of Current and
Debt - Schedule of Current and Long-term Debt (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Jun. 29, 2023 | Sep. 10, 2018 | |
Debt Instrument [Line Items] | ||||
Current debt | $ 650,000,000 | $ 250,000,000 | ||
Long-term debt, excluding current maturities | 4,567,000,000 | 4,471,000,000 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 1,500,000,000 | |||
Revolving 1.5 Billion Dollar Credit Facility [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 1,500,000,000 | |||
4.625% senior notes due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Current debt | $ 0 | $ 250,000,000 | ||
Stated interest rate | 4.625% | 4.625% | ||
Debt instrument maturity year | 2023 | 2023 | ||
3.600% senior notes due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Current debt | $ 650,000,000 | $ 0 | ||
Long-term debt, excluding current maturities | $ 0 | $ 649,000,000 | ||
Stated interest rate | 3.60% | 3.60% | ||
Debt instrument maturity year | 2024 | 2024 | ||
4.400% senior notes due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 548,000,000 | $ 547,000,000 | ||
Stated interest rate | 4.40% | 4.40% | ||
Debt instrument maturity year | 2026 | 2026 | ||
4.650% senior notes due 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 745,000,000 | $ 744,000,000 | ||
Stated interest rate | 4.65% | 4.65% | ||
Debt instrument maturity year | 2027 | 2027 | ||
4.500% senior notes due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 598,000,000 | $ 597,000,000 | ||
Stated interest rate | 4.50% | 4.50% | 4.50% | |
Debt instrument maturity year | 2028 | 2028 | ||
2.950% senior notes due 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 726,000,000 | $ 726,000,000 | ||
Stated interest rate | 2.95% | 2.95% | ||
Debt instrument maturity year | 2029 | 2029 | ||
5.350% senior notes due 2033 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 741,000,000 | $ 0 | ||
Stated interest rate | 5.35% | 5.35% | ||
Debt instrument maturity year | 2033 | 2033 | ||
6.125% senior notes due 2043 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 272,000,000 | $ 271,000,000 | ||
Stated interest rate | 6.125% | 6.125% | ||
Debt instrument maturity year | 2043 | 2043 | ||
5.050% senior notes due 2048 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 395,000,000 | $ 395,000,000 | ||
Stated interest rate | 5.05% | 5.05% | 5.05% | |
Debt instrument maturity year | 2048 | 2048 | ||
3.875% senior notes due 2049 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 542,000,000 | $ 542,000,000 | ||
Stated interest rate | 3.875% | 3.875% | ||
Debt instrument maturity year | 2049 | 2049 |
Debt - Narrative (Details)
Debt - Narrative (Details) € in Millions | 12 Months Ended | |||||||||||||||||||
Jun. 29, 2023 USD ($) | May 17, 2023 USD ($) | May 19, 2022 USD ($) | May 19, 2022 EUR (€) | Oct. 06, 2021 USD ($) | May 29, 2020 USD ($) | Sep. 10, 2019 USD ($) | Jul. 30, 2019 USD ($) | Sep. 10, 2018 USD ($) | May 16, 2017 USD ($) | May 26, 2016 USD ($) | May 26, 2016 EUR (€) | Mar. 22, 2016 USD ($) | Aug. 15, 2013 USD ($) | Mar. 11, 2011 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 | Nov. 30, 2021 USD ($) | May 26, 2016 EUR (€) | Mar. 15, 2016 | |
Debt Instrument [Line Items] | ||||||||||||||||||||
Description of interest accrual date | Interest has accrued on both the 2028 senior notes and 2048 senior notes from September 10, 2018 and is paid in cash on March 15 and September 15 of each year. | |||||||||||||||||||
Proceeds from debt, net of issuance costs | $ 989,000,000 | |||||||||||||||||||
Debt instrument, term | 1 year | |||||||||||||||||||
Borrowings | $ 7,435,000,000 | |||||||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 1,500,000,000 | |||||||||||||||||||
Term Loan Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit maturity date | Jul. 31, 2020 | |||||||||||||||||||
Repayment of debt | $ 175,000,000 | |||||||||||||||||||
Term Loan Due 2019 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Prepayment of outstanding debt | $ 127,000,000 | |||||||||||||||||||
Line of Credit [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Commitment fee percentage | 0.09% | |||||||||||||||||||
Line of Credit [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Commitment fee percentage | 0.25% | |||||||||||||||||||
Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Description of interest accrual date | Interest on the 2019 senior notes offering has accrued from September 10, 2019 and is paid in cash on March 15 and September 15 of each year. | |||||||||||||||||||
Proceeds from debt, net of issuance costs | $ 741,000,000 | $ 744,000,000 | $ 988,000,000 | |||||||||||||||||
Borrowings | $ 5,250,000,000 | |||||||||||||||||||
5.750% senior notes due 2021 [Member] | Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 5.75% | |||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||||||||||
Effective interest rate (as a percent) | 5.871% | |||||||||||||||||||
Maturity date | Mar. 31, 2021 | |||||||||||||||||||
3.600% senior notes due 2024 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 3.60% | 3.60% | ||||||||||||||||||
3.600% senior notes due 2024 [Member] | Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 3.60% | |||||||||||||||||||
Debt instrument, face amount | $ 650,000,000 | |||||||||||||||||||
Effective interest rate (as a percent) | 3.614% | |||||||||||||||||||
Maturity date | May 15, 2024 | |||||||||||||||||||
Description of interest accrual date | interest has accrued on the 2024 senior notes from May 16, 2017 and is paid in cash on May 15 and November 15 of each year. | |||||||||||||||||||
Proceeds from debt, net of issuance costs | $ 644,000,000 | |||||||||||||||||||
4.500% senior notes due 2028 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 4.50% | 4.50% | 4.50% | |||||||||||||||||
Debt instrument, face amount | $ 600,000,000 | |||||||||||||||||||
Effective interest rate (as a percent) | 4.504% | |||||||||||||||||||
Maturity date | Sep. 15, 2028 | |||||||||||||||||||
2.950% senior notes due 2029 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 2.95% | 2.95% | ||||||||||||||||||
2.950% senior notes due 2029 [Member] | Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 2.95% | 2.95% | ||||||||||||||||||
Debt instrument, face amount | $ 275,000,000 | $ 450,000,000 | ||||||||||||||||||
Effective interest rate (as a percent) | 2.697% | 2.971% | ||||||||||||||||||
Maturity date | Sep. 15, 2029 | Sep. 15, 2029 | ||||||||||||||||||
Description of interest accrual date | Interest on the additional 2029 senior notes has accrued from March 15, 2020 and is paid in cash on March 15 and September 15 of each year. | |||||||||||||||||||
5.050% senior notes due 2048 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 5.05% | 5.05% | 5.05% | |||||||||||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||||||||||||||
Effective interest rate (as a percent) | 5.073% | |||||||||||||||||||
Maturity date | Sep. 15, 2048 | |||||||||||||||||||
3.875% senior notes due 2049 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 3.875% | 3.875% | ||||||||||||||||||
3.875% senior notes due 2049 [Member] | Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 3.875% | |||||||||||||||||||
Debt instrument, face amount | $ 550,000,000 | |||||||||||||||||||
Effective interest rate (as a percent) | 3.898% | |||||||||||||||||||
Maturity date | Sep. 15, 2049 | |||||||||||||||||||
4.625% senior notes due 2023 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 4.625% | 4.625% | ||||||||||||||||||
Repayment of debt | 250,000,000 | |||||||||||||||||||
Repayment of Interest and debt expense | $ 256,000,000 | |||||||||||||||||||
4.625% senior notes due 2023 [Member] | Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 4.625% | |||||||||||||||||||
Debt instrument, face amount | $ 250,000,000 | |||||||||||||||||||
Effective interest rate (as a percent) | 4.696% | |||||||||||||||||||
Maturity date | Aug. 15, 2023 | |||||||||||||||||||
6.125% senior notes due 2043 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 6.125% | 6.125% | ||||||||||||||||||
6.125% senior notes due 2043 [Member] | Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 6.125% | |||||||||||||||||||
Debt instrument, face amount | $ 275,000,000 | |||||||||||||||||||
Effective interest rate (as a percent) | 6.154% | |||||||||||||||||||
Maturity date | Aug. 15, 2043 | |||||||||||||||||||
3.500% senior notes due 2021 [Member] | Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 3.50% | |||||||||||||||||||
Debt instrument, face amount | $ 450,000,000 | |||||||||||||||||||
Effective interest rate (as a percent) | 3.707% | |||||||||||||||||||
Maturity date | Sep. 15, 2021 | |||||||||||||||||||
4.400% senior notes due 2026 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 4.40% | 4.40% | ||||||||||||||||||
4.400% senior notes due 2026 [Member] | Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 4.40% | |||||||||||||||||||
Debt instrument, face amount | $ 550,000,000 | |||||||||||||||||||
Effective interest rate (as a percent) | 4.572% | |||||||||||||||||||
Maturity date | Mar. 15, 2026 | |||||||||||||||||||
5.350% senior notes due 2033 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 5.35% | 5.35% | ||||||||||||||||||
5.350% senior notes due 2033 [Member] | Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 5.35% | |||||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||||||||||
Effective interest rate (as a percent) | 5.47% | |||||||||||||||||||
Maturity date | May 15, 2033 | |||||||||||||||||||
4.650% senior notes due 2027 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 4.65% | 4.65% | ||||||||||||||||||
Description of interest accrual date | Interest on the 2027 senior notes accrues from May 19, 2022 and will be paid in cash on June 15 and December 15 of each year, commencing on December 15, 2022 | |||||||||||||||||||
4.650% senior notes due 2027 [Member] | Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 4.65% | |||||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||||||||||
Effective interest rate (as a percent) | 4.79% | |||||||||||||||||||
Maturity date | Jun. 15, 2027 | Jun. 15, 2027 | ||||||||||||||||||
2.125% senior notes due 2022 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 4.625% | 2.125% | ||||||||||||||||||
Repayment of debt | $ 582,000,000 | € 540 | ||||||||||||||||||
2.125% senior notes due 2022 [Member] | Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 2.125% | 2.125% | ||||||||||||||||||
Effective interest rate (as a percent) | 2.154% | 2.154% | ||||||||||||||||||
Maturity date | May 26, 2022 | May 26, 2022 | ||||||||||||||||||
Description of interest accrual date | Interest had accrued on the notes from May 26, 2016 and was paid in cash on May 26 of each year | Interest had accrued on the notes from May 26, 2016 and was paid in cash on May 26 of each year | ||||||||||||||||||
Proceeds from long-term debt issuance | $ 600,000,000 | € 535 | ||||||||||||||||||
2.125% senior notes due 2022 [Member] | Senior Notes [Member] | Trinity Acquisition plc [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, face amount | $ 609,000,000 | € 540 | ||||||||||||||||||
Revolving 1.25 Billion Dollar Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 1,250,000,000 | |||||||||||||||||||
Repayment of debt | $ 105,000,000 | |||||||||||||||||||
Revolving 1.25 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 1,250,000,000 | |||||||||||||||||||
Line of credit maturity date | Mar. 31, 2022 | |||||||||||||||||||
Revolving 1.25 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate spread | 1% | |||||||||||||||||||
Revolving 1.25 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate spread | 1.75% | |||||||||||||||||||
Revolving 1.25 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Bank Base Rate [Member] | Minimum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate spread | 0% | |||||||||||||||||||
Revolving 1.25 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Bank Base Rate [Member] | Maximum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate spread | 0.75% | |||||||||||||||||||
Revolving 1.5 Billion Dollar Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 1,500,000,000 | |||||||||||||||||||
Borrowings | $ 0 | |||||||||||||||||||
Revolving 1.5 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | $ 1,500,000,000 | |||||||||||||||||||
Line of credit maturity date | Oct. 06, 2026 | |||||||||||||||||||
Revolving 1.5 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Bank Base Rate [Member] | Minimum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate spread | 0% | |||||||||||||||||||
Revolving 1.5 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Bank Base Rate [Member] | Maximum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate spread | 0.75% | |||||||||||||||||||
Revolving 1.5 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Federal Funds Effective Rate [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate spread | 0.50% | |||||||||||||||||||
Revolving 1.5 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | SOFR [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate spread | 1% | |||||||||||||||||||
Revolving 1.5 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | SOFR [Member] | Minimum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate spread | 1% | |||||||||||||||||||
Revolving 1.5 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | SOFR [Member] | Maximum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate spread | 1.75% | |||||||||||||||||||
Revolving 1.5 Billion Dollar Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | SOFR Adjustment [Member] | Minimum [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest rate spread | 0.10% | |||||||||||||||||||
Senior Notes Due 2021 and 2026 [Member] | Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Proceeds from long-term debt issuance | $ 988,000,000 | |||||||||||||||||||
Revolving $800 million Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Maximum borrowing capacity | 800,000,000 | |||||||||||||||||||
Repayment of line of credit | 300,000,000 | |||||||||||||||||||
4.125% Senior Notes Due 2016 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Stated interest rate | 4.125% | |||||||||||||||||||
1-year Term Loan Facility Matures 2016, Tranche two [Member] | Notes Payable [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Repayment of line of credit | $ 400,000,000 | |||||||||||||||||||
1-year Term Loan Facility Matures 2016 [Member] | Notes Payable [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, term | 1 year | |||||||||||||||||||
Tranzact Collateralized Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Assumed debt related to borrowings | $ 91,000,000 | |||||||||||||||||||
Borrowings | $ 0 | |||||||||||||||||||
Repayment of principal and interest outstanding | $ 32,000,000 |
Debt - Maturities of Long Term
Debt - Maturities of Long Term Debt (Details) - USD ($) | Dec. 31, 2023 | Jun. 29, 2023 | Oct. 06, 2021 |
Debt Instrument [Line Items] | |||
2024 | $ 864,000,000 | ||
2025 | 206,000,000 | ||
2026 | 737,000,000 | ||
2027 | 913,000,000 | ||
2028 | 739,000,000 | ||
Thereafter | 3,976,000,000 | ||
Total | 7,435,000,000 | ||
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
2024 | 650,000,000 | ||
2025 | 0 | ||
2026 | 550,000,000 | ||
2027 | 750,000,000 | ||
2028 | 600,000,000 | ||
Thereafter | 2,700,000,000 | ||
Total | 5,250,000,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,500,000,000 | ||
Interest on Senior Notes [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
2024 | 214,000,000 | ||
2025 | 206,000,000 | ||
2026 | 187,000,000 | ||
2027 | 163,000,000 | ||
2028 | 139,000,000 | ||
Thereafter | 1,276,000,000 | ||
Total | 2,185,000,000 | ||
Revolving 1.5 Billion Dollar Credit Facility [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
2028 | 0 | ||
Thereafter | 0 | ||
Total | 0 | ||
Maximum borrowing capacity | $ 1,500,000,000 | ||
Revolving 1.5 Billion Dollar Credit Facility [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,500,000,000 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | ||||
Interest expense | $ 235 | $ 208 | $ 211 | |
Collateralized Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 0 | 0 | 2 | |
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 227 | 196 | 200 | |
Other [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | [1] | 5 | 9 | 6 |
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 3 | $ 3 | $ 3 | |
[1] Other primarily includes interest expense on finance leases and accretion on deferred and contingent consideration. |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Assets: | |||
Deferred compensation plans | $ 89 | $ 74 | |
Contingent consideration [Member] | Fair Value Inputs, Discount Rate [Member] | |||
Liabilities: | |||
Fair value inputs, weighted-average discount rate | 0.1328 | 0.1026 | |
Contingent consideration [Member] | Fair Value Inputs, Discount Rate [Member] | Minimum [Member] | |||
Liabilities: | |||
Fair value inputs, weighted-average discount rate | 0.1161 | ||
Contingent consideration [Member] | Fair Value Inputs, Discount Rate [Member] | Maximum [Member] | |||
Liabilities: | |||
Fair value inputs, weighted-average discount rate | 0.138 | ||
Recurring [Member] | |||
Assets: | |||
Mutual funds / exchange traded funds | [1] | $ 102 | $ 7 |
Derivative financial instruments | [2] | 6 | 26 |
Liabilities: | |||
Contingent consideration | [3],[4] | 31 | 40 |
Derivative financial instruments | [2] | 1 | 5 |
Recurring [Member] | Fiduciary Assets [Member] | |||
Assets: | |||
Mutual funds / exchange traded funds | 215 | 142 | |
Recurring [Member] | Commingled Funds [Member] | |||
Assets: | |||
Deferred compensation plans | [1],[5] | 9 | |
Recurring [Member] | Hedge Funds [Member] | |||
Assets: | |||
Deferred compensation plans | [1],[6] | 8 | |
Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Mutual funds / exchange traded funds | [1] | 102 | 7 |
Derivative financial instruments | [2] | 0 | 0 |
Liabilities: | |||
Contingent consideration | [3],[4] | 0 | 0 |
Derivative financial instruments | [2] | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Fiduciary Assets [Member] | |||
Assets: | |||
Mutual funds / exchange traded funds | 215 | 142 | |
Recurring [Member] | Level 1 [Member] | Commingled Funds [Member] | |||
Assets: | |||
Deferred compensation plans | [1],[5] | 0 | |
Recurring [Member] | Level 1 [Member] | Hedge Funds [Member] | |||
Assets: | |||
Deferred compensation plans | [1],[6] | 0 | |
Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Mutual funds / exchange traded funds | [1] | 0 | 0 |
Derivative financial instruments | [2] | 6 | 26 |
Liabilities: | |||
Contingent consideration | [3],[4] | 0 | 0 |
Derivative financial instruments | [2] | 1 | 5 |
Recurring [Member] | Level 2 [Member] | Fiduciary Assets [Member] | |||
Assets: | |||
Mutual funds / exchange traded funds | 0 | 0 | |
Recurring [Member] | Level 2 [Member] | Commingled Funds [Member] | |||
Assets: | |||
Deferred compensation plans | [1],[5] | 0 | |
Recurring [Member] | Level 2 [Member] | Hedge Funds [Member] | |||
Assets: | |||
Deferred compensation plans | [1],[6] | 0 | |
Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Mutual funds / exchange traded funds | [1] | 0 | 0 |
Derivative financial instruments | [2] | 0 | 0 |
Liabilities: | |||
Contingent consideration | [3],[4] | 31 | 40 |
Derivative financial instruments | [2] | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Fiduciary Assets [Member] | |||
Assets: | |||
Mutual funds / exchange traded funds | 0 | $ 0 | |
Recurring [Member] | Level 3 [Member] | Commingled Funds [Member] | |||
Assets: | |||
Deferred compensation plans | [1],[5] | 0 | |
Recurring [Member] | Level 3 [Member] | Hedge Funds [Member] | |||
Assets: | |||
Deferred compensation plans | [1],[6] | $ 0 | |
[1] With the exception of the funds included in fiduciary assets, the majority of these balances are held as part of deferred compensation plans with related liabilities in other current liabilities and other non-current liabilities on the consolidated balance sheets. See Note 10 — Derivative Financial Instruments for further information on our derivative investments Consideration due to be paid across multiple years until 2027. Probability weightings are based on our knowledge of the past and planned performance of the acquired entity to which the contingent consideration applies. The fair value weighted-average discount rates used in our material contingent consideration calculations were 13.28 % and 10.26 % at December 31, 2023 and December 31, 2022, respectively. The range of these discount rates was 11.61 % - 13.80 % at December 31, 2023. Using different probability weightings and discount rates could result in an increase or decrease of the contingent consideration payable. Consists of the Towers Watson Global Equity Focus Fund, for which redemptions can occur on any business day, and require a minimum of one business day’s notice. Consists of the Towers Watson Alternative Credit Fund, for which the redemption period is generally quarterly, however requires a 50-day notice. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Liabilities Measured Using Significant Unobservable Inputs Level 3 (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance as of beginning of period | $ 40 | |
Obligations assumed | 0 | |
Payments | (15) | |
Realized and unrealized losses | $ 6 | [1] |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Cost and Expense, Operating | |
Foreign exchange | $ 0 | |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Other Cost and Expense, Operating | |
Balance as of end of period | $ 31 | |
[1] Realized and unrealized losses include accretion and adjustments to contingent consideration liabilities, which are included within Interest expense and Other operating expenses, respectively, on the consolidated statements of comprehensive income . |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Fair value significant transfers to or from Level 3 | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Assets and Liabilities Whose Carrying Values Differ From the Fair Value and are Not Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current debt | $ 650 | $ 250 |
Long-term debt | 4,567 | 4,471 |
Carrying Value [Member] | Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term note receivable | 74 | 68 |
Current debt | 650 | 250 |
Long-term debt | 4,567 | 4,471 |
Fair Value [Member] | Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term note receivable | 70 | 63 |
Current debt | 645 | 248 |
Long-term debt | $ 4,359 | $ 4,069 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jan. 01, 2024 | Dec. 31, 2017 | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Compensation and Retirement Disclosure [Line Items] | ||||||
Portion of pension and OPEB obligation attributed to disclosed plans (as a percent) | 98% | 98% | ||||
Defined contribution plan expenses | $ | $ 158 | $ 148 | $ 155 | |||
United States [Member] | ||||||
Compensation and Retirement Disclosure [Line Items] | ||||||
Vesting period | 2 years | 2 years | ||||
United States [Member] | Subsequent Event [Member] | ||||||
Compensation and Retirement Disclosure [Line Items] | ||||||
Percentage of non elective contribution of eligible earnings | 3.50% | |||||
United States [Member] | Defined Contribution Plan Tranche One [Member] | ||||||
Compensation and Retirement Disclosure [Line Items] | ||||||
Employer matching contribution, percent of match | 100% | 100% | ||||
Maximum annual contributions per employee, percent | 1% | 1% | ||||
United States [Member] | Defined Contribution Plan Tranche Two [Member] | ||||||
Compensation and Retirement Disclosure [Line Items] | ||||||
Employer matching contribution, percent of match | 50% | 50% | ||||
Maximum annual contributions per employee, percent | 5% | 5% | ||||
Ireland [Member] | Willis [Member] | Pension Plan [Member] | ||||||
Compensation and Retirement Disclosure [Line Items] | ||||||
Increase in salary maximum amount | € 150,000 | |||||
Ireland [Member] | Towers Watson & Co. [Member] | Pension Plan [Member] | ||||||
Compensation and Retirement Disclosure [Line Items] | ||||||
Increase in salary maximum amount | € 160,000 | |||||
Newly-eligible employees [Member] | United States [Member] | ||||||
Compensation and Retirement Disclosure [Line Items] | ||||||
Defined benefit plan required employee contribution rate | 0.02 | |||||
Newly-eligible employees [Member] | United States [Member] | Subsequent Event [Member] | ||||||
Compensation and Retirement Disclosure [Line Items] | ||||||
Defined benefit plan required employee contribution rate | 0.02 |
Retirement Benefits - Change in
Retirement Benefits - Change in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | $ 7,402 | ||
Fair value of plan assets, end of year | 7,545 | $ 7,402 | |
Pension benefits assets | 588 | 827 | |
Non-current liability for pension benefits | (563) | (480) | |
Pension Plan [Member] | United States [Member] | |||
Change in Benefit Obligation | |||
Benefit obligation, beginning of year | 3,871 | 5,096 | |
Service cost | 56 | 77 | $ 79 |
Interest cost | 195 | 119 | 94 |
Employee contributions | 17 | 16 | |
Actuarial losses/(gains) | 201 | (1,186) | |
Settlements | (11) | (25) | |
Benefits paid | (230) | (226) | |
Other | (1) | 0 | 1 |
Foreign currency changes | 0 | 0 | |
Benefit obligation, end of year | 4,098 | 3,871 | 5,096 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 3,823 | 4,710 | |
Actual return on plan assets | 173 | (694) | |
Employer contributions | 31 | 42 | |
Employee contributions | 17 | 16 | |
Settlements | (11) | (25) | |
Benefits paid | (230) | (226) | |
Other | 0 | 0 | |
Foreign currency changes | 0 | 0 | |
Fair value of plan assets, end of year | 3,803 | 3,823 | 4,710 |
Funded status at end of year | (295) | (48) | |
Accumulated Benefit Obligation | 4,098 | 3,871 | |
Pension benefits assets | 0 | 179 | |
Current liability for pension benefits | (24) | (26) | |
Non-current liability for pension benefits | (271) | (201) | |
Components on the Consolidated Balance Sheet | (295) | (48) | |
Pension Plan [Member] | United Kingdom [Member] | |||
Change in Benefit Obligation | |||
Benefit obligation, beginning of year | 2,435 | 4,369 | |
Service cost | 6 | 12 | 17 |
Interest cost | 120 | 70 | 56 |
Employee contributions | 0 | 0 | |
Actuarial losses/(gains) | (32) | (1,434) | |
Settlements | 0 | (5) | |
Benefits paid | (116) | (130) | |
Other | 0 | 0 | |
Foreign currency changes | 145 | (447) | |
Benefit obligation, end of year | 2,558 | 2,435 | 4,369 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 2,999 | 5,266 | |
Actual return on plan assets | (3) | (1,622) | |
Employer contributions | 13 | 33 | |
Employee contributions | 0 | 0 | |
Settlements | 0 | (5) | |
Benefits paid | (116) | (130) | |
Other | 0 | 0 | |
Foreign currency changes | 176 | (543) | |
Fair value of plan assets, end of year | 3,069 | 2,999 | 5,266 |
Funded status at end of year | 511 | 564 | |
Accumulated Benefit Obligation | 2,558 | 2,435 | |
Pension benefits assets | 516 | 569 | |
Current liability for pension benefits | (1) | 0 | |
Non-current liability for pension benefits | (4) | (5) | |
Components on the Consolidated Balance Sheet | 511 | 564 | |
Pension Plan [Member] | Other Foreign Plans [Member] | |||
Change in Benefit Obligation | |||
Benefit obligation, beginning of year | 655 | 922 | |
Service cost | 14 | 22 | 24 |
Interest cost | 28 | 15 | 12 |
Employee contributions | 1 | 1 | |
Actuarial losses/(gains) | 72 | (221) | |
Settlements | (2) | (2) | |
Benefits paid | (35) | (30) | |
Other | 3 | 2 | |
Foreign currency changes | 26 | (54) | |
Benefit obligation, end of year | 762 | 655 | 922 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 580 | 739 | |
Actual return on plan assets | 67 | (124) | |
Employer contributions | 36 | 38 | |
Employee contributions | 1 | 1 | |
Settlements | (2) | (2) | |
Benefits paid | (35) | (30) | |
Other | 3 | 2 | |
Foreign currency changes | 23 | (44) | |
Fair value of plan assets, end of year | 673 | 580 | $ 739 |
Funded status at end of year | (89) | (75) | |
Accumulated Benefit Obligation | 733 | 629 | |
Pension benefits assets | 52 | 57 | |
Current liability for pension benefits | (5) | (5) | |
Non-current liability for pension benefits | (136) | (127) | |
Components on the Consolidated Balance Sheet | $ (89) | $ (75) |
Retirement Benefits - Amounts R
Retirement Benefits - Amounts Recognized in Other Comprehensive Income (Loss) (Details) - Pension Plan [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 915 | $ 597 |
Net prior service loss/(gain) | 0 | 0 |
Accumulated other comprehensive loss | 915 | 597 |
United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 1,674 | 1,497 |
Net prior service loss/(gain) | 19 | 6 |
Accumulated other comprehensive loss | 1,693 | 1,503 |
Other Foreign Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 82 | 36 |
Net prior service loss/(gain) | 8 | 9 |
Accumulated other comprehensive loss | $ 90 | $ 45 |
Retirement Benefits - Benefit O
Retirement Benefits - Benefit Obligation In Excess Of Plan Assets (Details) - Pension Plan [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation at end of year | $ 4,098 | $ 939 |
Fair value of plan assets at end of year | 3,803 | 713 |
United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation at end of year | 5 | 5 |
Fair value of plan assets at end of year | 0 | 0 |
Other Foreign Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation at end of year | 324 | 278 |
Fair value of plan assets at end of year | $ 182 | $ 145 |
Retirement Benefits - Accumulat
Retirement Benefits - Accumulated Benefit Obligation In Excess of Plan Assets (Details) - Pension Plan [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation at end of year | $ 4,098 | $ 939 |
Accumulated benefit obligation at end of year | 4,098 | 939 |
Fair value of plan assets at end of year | 3,803 | 713 |
United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation at end of year | 5 | 5 |
Accumulated benefit obligation at end of year | 5 | 5 |
Fair value of plan assets at end of year | 0 | 0 |
Other Foreign Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation at end of year | 324 | 238 |
Accumulated benefit obligation at end of year | 309 | 228 |
Fair value of plan assets at end of year | $ 182 | $ 106 |
Retirement Benefits - Net Perio
Retirement Benefits - Net Periodic Benefit Cost (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Pension Plan [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 56,000,000 | $ 77,000,000 | $ 79,000,000 |
Interest cost | 195,000,000 | 119,000,000 | 94,000,000 |
Expected return on plan assets | (304,000,000) | (331,000,000) | (312,000,000) |
Amortization of unrecognized prior service (credit)/cost | 0 | ||
Amortization of unrecognized actuarial loss | 13,000,000 | 14,000,000 | 37,000,000 |
Settlement | 1,000,000 | 4,000,000 | 1,000,000 |
Curtailment gain | 0 | ||
Other | (1,000,000) | 0 | 1,000,000 |
Net periodic benefit (income)/cost | (39,000,000) | (117,000,000) | (100,000,000) |
Net actuarial (gain)/loss | 332,000,000 | (161,000,000) | (328,000,000) |
Amortization of unrecognized actuarial loss | (13,000,000) | (14,000,000) | (37,000,000) |
Prior service cost | 0 | ||
Amortization of unrecognized prior service credit/(cost) | 0 | ||
Settlement | (1,000,000) | (4,000,000) | (1,000,000) |
Curtailment gain | 0 | ||
Plan (disposal)/addition | 0 | ||
Total recognized in other comprehensive (income)/loss | 318,000,000 | (179,000,000) | (366,000,000) |
Total recognized in net periodic benefit (income)/cost and other comprehensive (income)/loss | 279,000,000 | (296,000,000) | (466,000,000) |
Pension Plan [Member] | United Kingdom [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 6,000,000 | 12,000,000 | 17,000,000 |
Interest cost | 120,000,000 | 70,000,000 | 56,000,000 |
Expected return on plan assets | (162,000,000) | (144,000,000) | (170,000,000) |
Amortization of unrecognized prior service (credit)/cost | (12,000,000) | (12,000,000) | (17,000,000) |
Amortization of unrecognized actuarial loss | 48,000,000 | 29,000,000 | 27,000,000 |
Settlement | 0 | 1,000,000 | 2,000,000 |
Curtailment gain | 0 | (1,000,000) | |
Other | 0 | 0 | |
Net periodic benefit (income)/cost | 0 | (44,000,000) | (86,000,000) |
Net actuarial (gain)/loss | 133,000,000 | 332,000,000 | 140,000,000 |
Amortization of unrecognized actuarial loss | (48,000,000) | (29,000,000) | (27,000,000) |
Prior service cost | 0 | ||
Amortization of unrecognized prior service credit/(cost) | 12,000,000 | 12,000,000 | 17,000,000 |
Settlement | 0 | (1,000,000) | (2,000,000) |
Curtailment gain | 0 | 1,000,000 | |
Plan (disposal)/addition | 0 | 34,000,000 | |
Total recognized in other comprehensive (income)/loss | 97,000,000 | 314,000,000 | 95,000,000 |
Total recognized in net periodic benefit (income)/cost and other comprehensive (income)/loss | 97,000,000 | 270,000,000 | 9,000,000 |
Pension Plan [Member] | Other Foreign Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 14,000,000 | 22,000,000 | 24,000,000 |
Interest cost | 28,000,000 | 15,000,000 | 12,000,000 |
Expected return on plan assets | (38,000,000) | (38,000,000) | (37,000,000) |
Amortization of unrecognized prior service (credit)/cost | 1,000,000 | 1,000,000 | 1,000,000 |
Amortization of unrecognized actuarial loss | 0 | 3,000,000 | 6,000,000 |
Settlement | (1,000,000) | (1,000,000) | 2,000,000 |
Curtailment gain | 0 | ||
Other | 3,000,000 | 2,000,000 | |
Net periodic benefit (income)/cost | 4,000,000 | 2,000,000 | 8,000,000 |
Net actuarial (gain)/loss | 43,000,000 | (59,000,000) | (61,000,000) |
Amortization of unrecognized actuarial loss | 0 | (3,000,000) | (6,000,000) |
Prior service cost | 0 | 12,000,000 | |
Amortization of unrecognized prior service credit/(cost) | (1,000,000) | (1,000,000) | (1,000,000) |
Settlement | 1,000,000 | 1,000,000 | (2,000,000) |
Curtailment gain | 0 | ||
Plan (disposal)/addition | 0 | (8,000,000) | |
Total recognized in other comprehensive (income)/loss | 43,000,000 | (62,000,000) | (50,000,000) |
Total recognized in net periodic benefit (income)/cost and other comprehensive (income)/loss | $ 47,000,000 | $ (60,000,000) | $ (42,000,000) |
Retirement Benefits - Assumptio
Retirement Benefits - Assumptions Used (Details) - Pension Plan [Member] | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - PBO | 5.40% | 2.80% | 2.50% |
Discount rate - service cost | 5.50% | 3% | 2.70% |
Discount rate - interest cost on service cost | 5.30% | 2.50% | 2% |
Discount rate - interest cost on PBO | 5.20% | 2.40% | 1.80% |
Expected long-term rate of return on assets | 8.20% | 7.20% | 7.20% |
Rate of increase in compensation levels | 4.30% | 4.30% | 4.30% |
Discount rate | 5.10% | 5.40% | |
Rate of increase in compensation levels | 4.30% | 4.30% | |
United Kingdom [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - PBO | 5% | 1.90% | 1.50% |
Discount rate - service cost | 5% | 1.90% | 1.60% |
Discount rate - interest cost on service cost | 4.90% | 1.80% | 1.40% |
Discount rate - interest cost on PBO | 4.90% | 1.80% | 1.20% |
Expected long-term rate of return on assets | 5.30% | 3% | 3.10% |
Rate of increase in compensation levels | 3.40% | 3.40% | 3% |
Discount rate | 4.70% | 5% | |
Rate of increase in compensation levels | 3.30% | 3.40% | |
Other Foreign Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - PBO | 4.30% | 2% | 1.70% |
Discount rate - service cost | 4.30% | 2.40% | 2.30% |
Discount rate - interest cost on service cost | 4.30% | 2.20% | 2% |
Discount rate - interest cost on PBO | 4.30% | 1.80% | 1.30% |
Expected long-term rate of return on assets | 6.50% | 5.40% | 5.40% |
Rate of increase in compensation levels | 2.40% | 2.30% | 2.30% |
Discount rate | 3.80% | 4.30% | |
Rate of increase in compensation levels | 2.40% | 2.40% |
Retirement Benefits - Allocatio
Retirement Benefits - Allocation of Plan Assets (Details) - Pension Plan [Member] | Dec. 31, 2023 |
Willis [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 100% |
Willis [Member] | United Kingdom [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 100% |
Willis [Member] | Ireland [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 100% |
Willis Towers Watson [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 100% |
Willis Towers Watson [Member] | Switzerland | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 100% |
Willis Towers Watson [Member] | Canada [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 100% |
Willis Towers Watson [Member] | Germany [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 100% |
Towers Watson & Co. [Member] | United Kingdom [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 100% |
Towers Watson & Co. [Member] | Ireland [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 100% |
Equity securities [Member] | Willis [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 30% |
Equity securities [Member] | Willis [Member] | United Kingdom [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 0% |
Equity securities [Member] | Willis [Member] | Ireland [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 30% |
Equity securities [Member] | Willis Towers Watson [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 23% |
Equity securities [Member] | Willis Towers Watson [Member] | Switzerland | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 53% |
Equity securities [Member] | Willis Towers Watson [Member] | Canada [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 40% |
Equity securities [Member] | Willis Towers Watson [Member] | Germany [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 34% |
Equity securities [Member] | Towers Watson & Co. [Member] | United Kingdom [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 1% |
Equity securities [Member] | Towers Watson & Co. [Member] | Ireland [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 40% |
Debt securities [Member] | Willis [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 33% |
Debt securities [Member] | Willis [Member] | United Kingdom [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 35% |
Debt securities [Member] | Willis [Member] | Ireland [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 28% |
Debt securities [Member] | Willis Towers Watson [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 33% |
Debt securities [Member] | Willis Towers Watson [Member] | Switzerland | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 14% |
Debt securities [Member] | Willis Towers Watson [Member] | Canada [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 50% |
Debt securities [Member] | Willis Towers Watson [Member] | Germany [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 62% |
Debt securities [Member] | Towers Watson & Co. [Member] | United Kingdom [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 19% |
Debt securities [Member] | Towers Watson & Co. [Member] | Ireland [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 30% |
Real estate [Member] | Willis [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 11% |
Real estate [Member] | Willis [Member] | United Kingdom [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 0% |
Real estate [Member] | Willis [Member] | Ireland [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 3% |
Real estate [Member] | Willis Towers Watson [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 16% |
Real estate [Member] | Willis Towers Watson [Member] | Switzerland | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 28% |
Real estate [Member] | Willis Towers Watson [Member] | Canada [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 5% |
Real estate [Member] | Willis Towers Watson [Member] | Germany [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 0% |
Real estate [Member] | Towers Watson & Co. [Member] | United Kingdom [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 1% |
Real estate [Member] | Towers Watson & Co. [Member] | Ireland [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 0% |
Other [Member] | Willis [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 26% |
Other [Member] | Willis [Member] | United Kingdom [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 65% |
Other [Member] | Willis [Member] | Ireland [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 39% |
Other [Member] | Willis Towers Watson [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 28% |
Other [Member] | Willis Towers Watson [Member] | Switzerland | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 5% |
Other [Member] | Willis Towers Watson [Member] | Canada [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 5% |
Other [Member] | Willis Towers Watson [Member] | Germany [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 4% |
Other [Member] | Towers Watson & Co. [Member] | United Kingdom [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 79% |
Other [Member] | Towers Watson & Co. [Member] | Ireland [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan asset target allocations | 30% |
Retirement Benefits - Fair Valu
Retirement Benefits - Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 97 | $ 84 |
Pension Plan [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3,803 | 3,821 |
Pension Plan [Member] | United States [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29 | 15 |
Pension Plan [Member] | United States [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 85 | 89 |
Pension Plan [Member] | United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3,658 | 3,581 |
Net assets | 3,069 | 2,999 |
Pension Plan [Member] | United Kingdom [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,509 | 1,392 |
Net assets | 1,509 | 1,392 |
Pension Plan [Member] | United Kingdom [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 913 | 753 |
Net assets | 324 | 171 |
Pension Plan [Member] | United Kingdom [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 45 | 40 |
Net assets | 45 | 40 |
Pension Plan [Member] | Other Foreign Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 673 | 580 |
Pension Plan [Member] | Other Foreign Plans [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 3 |
Pension Plan [Member] | Other Foreign Plans [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 52 | 44 |
Pension Plan [Member] | Cash [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29 | 15 |
Pension Plan [Member] | Cash [Member] | United States [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29 | 15 |
Pension Plan [Member] | Cash [Member] | United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 204 | 125 |
Pension Plan [Member] | Cash [Member] | United Kingdom [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 204 | 125 |
Pension Plan [Member] | Cash [Member] | Other Foreign Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 3 |
Pension Plan [Member] | Cash [Member] | Other Foreign Plans [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 3 |
Pension Plan [Member] | Short-term securities [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 85 | 89 |
Pension Plan [Member] | Short-term securities [Member] | United States [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 85 | 89 |
Pension Plan [Member] | Government bonds [Member] | United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,305 | 1,267 |
Pension Plan [Member] | Government bonds [Member] | United Kingdom [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,305 | 1,267 |
Pension Plan [Member] | Other fixed income [Member] | United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 377 | 189 |
Pension Plan [Member] | Other fixed income [Member] | United Kingdom [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 377 | 189 |
Pension Plan [Member] | Pooled / commingled funds [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,146 | 1,945 |
Pension Plan [Member] | Pooled / commingled funds [Member] | United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,065 | 1,255 |
Pension Plan [Member] | Pooled / commingled funds [Member] | Other Foreign Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 583 | 501 |
Pension Plan [Member] | Private equity [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 665 | 612 |
Pension Plan [Member] | Private equity [Member] | United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14 | 20 |
Pension Plan [Member] | Derivatives [Member] | United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 254 | 229 |
Fair value of plan liabilities | 93 | 98 |
Pension Plan [Member] | Derivatives [Member] | United Kingdom [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 254 | 229 |
Fair value of plan liabilities | 93 | 98 |
Pension Plan [Member] | Hedge funds [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 878 | 1,160 |
Pension Plan [Member] | Hedge funds [Member] | Other Foreign Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 36 | 32 |
Pension Plan [Member] | Real estate [Member] | United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 112 | 121 |
Pension Plan [Member] | Corporate bonds [Member] | United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 282 | 335 |
Pension Plan [Member] | Corporate bonds [Member] | United Kingdom [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 282 | 335 |
Pension Plan [Member] | Insurance contracts [Member] | United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 45 | 40 |
Pension Plan [Member] | Insurance contracts [Member] | United Kingdom [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 45 | 40 |
Pension Plan [Member] | Insurance contracts [Member] | Other Foreign Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5 | 5 |
Pension Plan [Member] | Insurance contracts [Member] | Other Foreign Plans [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5 | 5 |
Pension Plan [Member] | Repurchase agreements [Member] | United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan liabilities | 496 | 484 |
Pension Plan [Member] | Repurchase agreements [Member] | United Kingdom [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan liabilities | 496 | 484 |
Pension Plan [Member] | Investment in multiple employer pension plan [Member] | Other Foreign Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 47 | 39 |
Pension Plan [Member] | Investment in multiple employer pension plan [Member] | Other Foreign Plans [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 47 | $ 39 |
Retirement Benefits - Fair Va_2
Retirement Benefits - Fair Value Reconciliation (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Retirement Benefits [Abstract] | ||
Net assets held in investments | $ 7,545 | $ 7,400 |
Net receivable for investments purchased | 0 | 2 |
Fair value of plan assets | $ 7,545 | $ 7,402 |
Retirement Benefits - Significa
Retirement Benefits - Significant Unobservable Input Reconciliation (Details) - Level 3 [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |
Fair value of plan assets, beginning of year | $ 84 |
Purchases | 2 |
Unrealized gain | 4 |
Foreign exchange | (7) |
Fair value of plan assets, end of year | $ 97 |
Retirement Benefits - Projected
Retirement Benefits - Projected Benefit Obligation (Details) - Pension Plan [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 31 | $ 42 |
United States [Member] | Qualified Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected future employer contributions, next fiscal year | 0 | |
Employer contributions | 0 | 1 |
United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 13 | 33 |
United Kingdom [Member] | Qualified Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected future employer contributions, next fiscal year | 2 | |
Employer contributions | 12 | 32 |
Other Foreign Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 36 | 38 |
Other Foreign Plans [Member] | Qualified Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected future employer contributions, next fiscal year | 9 | |
Employer contributions | $ 24 | $ 25 |
Retirement Benefits - Expected
Retirement Benefits - Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 442 |
2025 | 440 |
2026 | 456 |
2027 | 459 |
2028 | 462 |
Years 2029 - 2033 | 2,334 |
Expected future benefit payments, total | 4,593 |
Pension Plan [Member] | UNITED STATES [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 287 |
2025 | 287 |
2026 | 293 |
2027 | 290 |
2028 | 289 |
Years 2029 - 2033 | 1,380 |
Expected future benefit payments, total | 2,826 |
Pension Plan [Member] | UNITED KINGDOM [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 119 |
2025 | 121 |
2026 | 130 |
2027 | 135 |
2028 | 137 |
Years 2029 - 2033 | 744 |
Expected future benefit payments, total | 1,386 |
Pension Plan [Member] | Other Foreign Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 36 |
2025 | 32 |
2026 | 33 |
2027 | 34 |
2028 | 36 |
Years 2029 - 2033 | 210 |
Expected future benefit payments, total | $ 381 |
Leases - Schedule of Lease (Det
Leases - Schedule of Lease (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | $ 565 | $ 586 |
Operating Lease, Current lease liabilities | 125 | 126 |
Operating Lease, Long-term lease liabilities | 592 | 620 |
Finance Lease, Right-of-use assets | $ 3 | $ 4 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Finance Lease, Current lease liabilities | $ 5 | $ 4 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Finance Lease, Long-term lease liabilities | $ 7 | $ 12 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total Right-of-use assets | $ 568 | $ 590 |
Total Current lease liabilities | 130 | 130 |
Total Long-term lease liabilities | $ 599 | $ 632 |
Leases - Schedule of Amount Rec
Leases - Schedule of Amount Recorded in Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance lease cost: | |||
Amortization of right-of-use assets | $ 1 | $ 2 | $ 1 |
Interest on lease liabilities | 2 | 2 | 3 |
Operating lease cost | 146 | 175 | 192 |
Short-term lease cost | 1 | 0 | 1 |
Variable lease cost | 64 | 71 | 52 |
Sublease income | (13) | (15) | (20) |
Total lease cost, net | $ 201 | $ 235 | $ 229 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Lease cost | $ 201,000,000 | $ 235,000,000 | $ 229,000,000 |
Non-cash additions to operating lease ROU assets | 85,000,000 | 65,000,000 | 37,000,000 |
Discontinued Operations [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lease cost | 0 | 0 | 0 |
Restructuring Charges [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lease cost | $ 38,000,000 | $ 57,000,000 | $ 19,000,000 |
Leases -Schedule of Cash Paid i
Leases -Schedule of Cash Paid in the Measurement of Lease Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Operating leases | $ 155 | $ 173 | $ 186 |
Finance leases | 2 | 2 | 3 |
Cash flows used in financing activities: | |||
Finance leases | 4 | 4 | 3 |
Total lease payments | $ 161 | $ 179 | $ 192 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Term and Discount Rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating Leases, Weighted-average remaining term (in years) | 6 years 7 months 6 days | 6 years 10 months 24 days |
Operating Leases, Weighted-average discount rate | 3.70% | 3.40% |
Finance Leases, Weighted-average remaining term (in years) | 2 years 1 month 6 days | 3 years 1 month 6 days |
Finance Leases, Weighted-average discount rate | 12.70% | 12.70% |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Operating and Finance Leases Liabilities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Operating Leases [Abstract] | |
Operating Lease, 2024 | $ 147 |
Operating Lease, 2025 | 135 |
Operating Lease, 2026 | 120 |
Operating Lease, 2027 | 96 |
Operating Lease, 2028 | 87 |
Operating Lease, Thereafter | 227 |
Operating Lease, Total future lease payments | 812 |
Operating Lease, Interest | (95) |
Operating Lease, Total lease liabilities | 717 |
Finance Leases [Abstract] | |
Finance Lease, 2024 | 6 |
Finance Lease, 2025 | 6 |
Finance Lease, 2026 | 2 |
Finance Lease, 2027 | 0 |
Finance Lease, 2028 | 0 |
Finance Lease, Thereafter | 0 |
Finance Lease, Total future lease payments | 14 |
Finance Lease, Interest | (2) |
Finance Lease, Total lease liabilities | 12 |
Leases Liabilities Due [Abstract] | |
Total Lease, 2024 | 153 |
Total Lease, 2025 | 141 |
Total Lease, 2026 | 122 |
Total Lease, 2027 | 96 |
Total Lease, 2028 | 87 |
Total Lease, Thereafter | 227 |
Total Lease, Total future lease payments | 826 |
Total Lease, Interest | (97) |
Total Lease, Total lease liabilities | $ 729 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Operating leases | $ 812,000,000 | |
Capital lease obligations | 14,000,000 | |
Deferred consideration | 3,000,000 | $ 6,000,000 |
Amount payable from option | 3,000,000 | |
Trident V Parallel Fund [Member] | ||
Loss Contingencies [Line Items] | ||
Capital contribution obligation | 27,000,000 | |
Property Lease Guarantee [Member] | ||
Loss Contingencies [Line Items] | ||
Operating leases | 350,000,000 | 399,000,000 |
Capital lease obligations | $ 0 | $ 3,000,000 |
Supplementary Information for_3
Supplementary Information for Certain Balance Sheet Accounts - Prepaid and Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepayments and accrued income | $ 123 | $ 132 |
Deferred contract costs | 76 | 71 |
Derivatives and investments | 4 | 43 |
Deferred compensation plan assets | 16 | 16 |
Corporate income and other taxes | 87 | 89 |
Acquired renewal commissions receivable | 5 | 9 |
Other current assets | 53 | 54 |
Total prepaid and other current assets | $ 364 | $ 414 |
Supplementary Information for_4
Supplementary Information for Certain Balance Sheet Accounts - Other Non-current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepayments and accrued income | $ 9 | $ 10 |
Deferred contract costs | 142 | 126 |
Deferred compensation plans | 89 | 74 |
Deferred tax assets | 86 | 68 |
Accounts receivable, net | 19 | 9 |
Acquired renewal commissions receivable | 23 | 29 |
Long-term note receivable | 74 | 68 |
Other investments | 88 | 90 |
Insurance recovery receivables | 85 | 80 |
Non-current contract assets | 909 | 745 |
Other non-current assets | 49 | 58 |
Total other non-current assets | $ 1,573 | $ 1,357 |
Supplementary Information for_5
Supplementary Information for Certain Balance Sheet Accounts - Deferred Revenue and Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable, accrued liabilities and deferred income | $ 1,073 | $ 975 |
Accrued discretionary and incentive compensation | 795 | 708 |
Accrued vacation | 150 | 142 |
Other employee-related liabilities | 86 | 90 |
Total deferred revenue and accrued expenses | $ 2,104 | $ 1,915 |
Supplementary Information for_6
Supplementary Information for Certain Balance Sheet Accounts - Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Dividends payable | $ 103 | $ 102 | |
Income taxes payable | 50 | 83 | |
Interest payable | 50 | 49 | |
Deferred compensation plan liabilities | 16 | 14 | |
Contingent and deferred consideration on acquisitions | 7 | 17 | |
Accrued retirement benefits | 31 | 32 | |
Payroll and other benefits-related liabilities | [1] | 166 | 157 |
Other taxes payable | [1] | 78 | 65 |
Derivatives | 1 | 4 | |
Third-party commissions | 106 | 124 | |
Other current liabilities | [1] | 70 | 69 |
Total other current liabilities | $ 678 | $ 716 | |
[1] Certain amounts have been reclassified from the prior year to conform to the current year presentation. |
Supplementary Information for_7
Supplementary Information for Certain Balance Sheet Accounts - Provision For Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Claims, lawsuits and other proceedings | $ 306 | $ 296 |
Other provisions | 59 | 61 |
Total provision for liabilities | $ 365 | $ 357 |
Supplementary Information for_8
Supplementary Information for Certain Balance Sheet Accounts - Other Non-current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Deferred and long-term compensation plan liabilities | [1] | $ 97 | $ 113 |
Contingent and deferred consideration on acquisitions | 27 | 29 | |
Liabilities for uncertain tax positions | 42 | 40 | |
Finance leases | 7 | 12 | |
Other non-current liabilities | [1] | 65 | 27 |
Total other non-current liabilities | $ 238 | $ 221 | |
[1] Certain amounts have been reclassified from the prior year to conform to the current year presentation. |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Other Income and Expenses [Abstract] | ||||
Gain on disposal of operations | [1] | $ 43 | $ 7 | $ 379 |
Net periodic pension and postretirement benefit credits | 109 | 272 | 303 | |
Interest in earnings of associates and other investments | 3 | 4 | 8 | |
Foreign exchange (loss)/gain | [2] | (11) | 0 | 8 |
Other | 5 | 5 | 3 | |
Other income, net | $ 149 | $ 288 | $ 701 | |
[1] For the year ended December 31, 2022, includes a $ 24 million non-cash revaluation gain related to an acquisition completed in stages. Includes the offsetting effects of the Company's foreign currency hedging program. See Note 10 — Derivative Financial Instruments. |
Other Income, Net (Parenthetica
Other Income, Net (Parenthetical ) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Non-cash Revaluation Gain Related to Acquisition [Member] | |
Business Acquisition [Line Items] | |
Gain on disposal of operations | $ 24 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive (loss)/income before tax | $ (370) | $ (418) | $ 255 |
Other comprehensive (loss)/income, tax | 137 | (18) | (80) |
Other comprehensive (loss)/income, net of tax, before non-controlling interests | (233) | (436) | 175 |
Foreign currency translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive (loss)/income before tax | 173 | (499) | (87) |
Other comprehensive (loss)/income, tax | 0 | 0 | 0 |
Other comprehensive (loss)/income, net of tax, before non-controlling interests | 173 | (499) | (87) |
Defined pension and post-retirement benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive (loss)/income before tax | (546) | 87 | 343 |
Other comprehensive (loss)/income, tax | 138 | (22) | (83) |
Other comprehensive (loss)/income, net of tax, before non-controlling interests | (408) | 65 | 260 |
Derivative instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive (loss)/income before tax | 3 | (6) | (1) |
Other comprehensive (loss)/income, tax | (1) | 4 | 3 |
Other comprehensive (loss)/income, net of tax, before non-controlling interests | 2 | (2) | 2 |
AOCI Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive (loss)/income, before tax | (2) | 1 | (2) |
Other comprehensive (loss)/income, tax | 0 | 0 | 0 |
Other comprehensive (loss)/income, net of tax, before non-controlling interests | (2) | 1 | (2) |
AOCI Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive (loss)/income before tax | (372) | (417) | 253 |
Other comprehensive (loss)/income, tax | 137 | (18) | (80) |
Other comprehensive (loss)/income, net of tax, before non-controlling interests | $ (235) | $ (435) | $ 173 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Stockholders' equity attributable to parent, beginning balance | $ 10,016 | ||||
Reclassification of tax effects per ASU 2018-02 | (1,466) | $ (1,764) | |||
Stockholders' equity attributable to parent, ending balance | 9,520 | 10,016 | |||
Foreign currency translation [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Stockholders' equity attributable to parent, beginning balance | (987) | (489) | $ (400) | ||
Other comprehensive income/(loss) before reclassifications | 171 | (498) | (133) | ||
Amounts reclassified from accumulated other comprehensive income/(loss) (net of income tax) | 0 | 0 | 44 | [1] | |
Net other comprehensive income/(loss) | 171 | (498) | (89) | ||
Stockholders' equity attributable to parent, ending balance | (816) | (987) | (489) | ||
Derivative instruments [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Stockholders' equity attributable to parent, beginning balance | [2] | 9 | 11 | 9 | |
Other comprehensive income/(loss) before reclassifications | [2] | 2 | (3) | 9 | |
Amounts reclassified from accumulated other comprehensive income/(loss) (net of income tax) | [2] | 0 | 1 | (7) | [1] |
Net other comprehensive income/(loss) | [2] | 2 | (2) | 2 | |
Stockholders' equity attributable to parent, ending balance | [2] | 11 | 9 | 11 | |
Defined pension and post-retirement benefit costs [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Stockholders' equity attributable to parent, beginning balance | [3] | (1,643) | (1,708) | (1,968) | |
Other comprehensive income/(loss) before reclassifications | [3] | (444) | 41 | 191 | |
Amounts reclassified from accumulated other comprehensive income/(loss) (net of income tax) | [3] | 36 | 24 | 69 | [1] |
Net other comprehensive income/(loss) | [3] | (408) | 65 | 260 | |
Stockholders' equity attributable to parent, ending balance | [3] | (2,051) | (1,643) | (1,708) | |
Total [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Stockholders' equity attributable to parent, beginning balance | (2,621) | (2,186) | (2,359) | ||
Other comprehensive income/(loss) before reclassifications | (271) | (460) | 67 | ||
Amounts reclassified from accumulated other comprehensive income/(loss) (net of income tax) | 36 | 25 | 106 | [1] | |
Net other comprehensive income/(loss) | (235) | (435) | 173 | ||
Stockholders' equity attributable to parent, ending balance | $ (2,856) | $ (2,621) | $ (2,186) | ||
[1] Includes reclassifications in 2021 of $ 44 million and $ 31 million of foreign currency translation and defined pension and post-retirement benefit costs, respectively, attributable to the gain on disposal of our Miller business (see Note 3 — Acquisitions and Divestitures). The net gain on disposal is included in Other income, net in the accompanying consolidated statements of comprehensive income. Reclassification adjustments from accumulated other comprehensive loss related to derivative instruments are included in Revenue and Salaries and benefits in the accompanying consolidated statements of comprehensive income. See Note 10 — Derivative Financial Instruments for additional details regarding the reclassification adjustments for the derivative settlements. Reclassification adjustments from accumulated other comprehensive loss are included in the computation of net periodic pension cost (see Note 13 — Retirement Benefits). These components are included in Other income, net in the accompanying consolidated statements of comprehensive income. |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification from AOCI, Current Period, Tax | $ 11 | $ 9 | $ 12 |
Adjustment of retained earnings | $ 1,466 | $ 1,764 | |
Miller [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassifications of foreign currency translation | 44 | ||
Reclassifications of defined pension and post-retirement benefits costs | $ 31 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Grantees $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issuance of shares under employee stock compensation plans (in shares) | shares | 265,000 | ||
Share-based compensation | $ 125,000,000 | $ 99,000,000 | $ 101,000,000 |
Tax benefit from compensation expense | $ 21,000,000 | 18,000,000 | 17,000,000 |
Stock options outstanding | shares | 0 | ||
Cash received from exercise of stock options | 7,000,000 | 10,000,000 | |
Number of grantees benefited from modifications | Grantees | 464 | ||
Incremental compensation cost recognized over service periods | $ 14,000,000 | ||
Employee Services Share Based Compensation, Tax Benefit Realized From Vesting Of RSUs | 9,000,000 | 23,000,000 | $ 12,000,000 |
Transaction and Transformation [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incremental compensation cost recognized over service periods | 6,000,000 | ||
Transformation Program [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $ 31,000,000 | $ 27,000,000 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | shares | 0 | 0 | 0 |
Time-based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercised, Outstanding (in shares) | shares | 15,000 | ||
Exercised, Weighted Average Exercise Price | $ / shares | $ 117.36 | ||
Options, exercises in period, intrinsic value | $ 1,000,000 | $ 7,000,000 | |
Performance-based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, exercises in period, intrinsic value | 9,000,000 | 23,000,000 | |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 6,000,000 | $ 11,000,000 | $ 8,000,000 |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU vested in prior year | shares | 93,000 | ||
Compensation cost not yet recognized | $ 41,000,000 | ||
Compensation cost not yet recognized, period for recognition | 1 year 6 months | ||
Vested (shares) | shares | 122,000 | 35,000 | 15,000 |
Vested, Average Intrinsic Value (in dollars per share) | $ / shares | $ 221.26 | $ 202.8 | $ 250.83 |
Granted units | shares | 156,000 | ||
Performance-Based Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost not yet recognized | $ 74,000,000 | ||
Compensation cost not yet recognized, period for recognition | 1 year 10 months 24 days | ||
Vested (shares) | shares | 273,000 | 32,000 | 133,000 |
Vested, Average Intrinsic Value (in dollars per share) | $ / shares | $ 234.44 | $ 197.55 | $ 224.79 |
Granted units | shares | 231,000 | ||
Phantom RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost not yet recognized | $ 0 | ||
Granted units | shares | 0 | 0 | 0 |
Cash payments made on stock awards | $ 32,000,000 | ||
Liability recognized | $ 0 | ||
2012 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | shares | 3,867,028 |
Share-based Compensation - Assu
Share-based Compensation - Assumptions (Details) - Restricted Stock Units [Member] | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 29.10% |
Expected life (years) | 2 years 10 months 24 days |
Risk-free interest rate | 0.30% |
Share-based Compensation - Nonv
Share-based Compensation - Nonvested Restricted Stock Units and Performance Based Stock Units Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Balance (shares) | 412,000 | ||
Granted (shares) | 156,000 | ||
Vested (shares) | (122,000) | (35,000) | (15,000) |
Forfeited (shares) | (24,000) | ||
Balance (shares) | 422,000 | 412,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 237.23 | ||
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 231.33 | ||
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 233.2 | ||
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | 239.67 | ||
Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 236.08 | $ 237.23 | |
Performance-Based Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Balance (shares) | 588,000 | ||
Granted (shares) | 231,000 | ||
Vested (shares) | (273,000) | (32,000) | (133,000) |
Forfeited (shares) | (29,000) | ||
Balance (shares) | 517,000 | 588,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 266.39 | ||
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 232.98 | ||
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 259.54 | ||
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | 267.36 | ||
Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 255.01 | $ 266.39 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Income from continuing operations | $ 1,064 | $ 1,064 | $ 2,156 |
Less: income attributable to non-controlling interests | (9) | (15) | (14) |
Income from continuing operations attributable to WTW | 1,055 | 1,049 | 2,142 |
(Loss)/income from discontinued operations, net of tax | $ 0 | $ (40) | $ 2,080 |
Basic weighted-average number of shares outstanding (shares) | 105 | 112 | 128 |
Dilutive effect of potentially issuable shares (shares) | 1 | 0 | 1 |
Diluted weighted-average number of shares outstanding (shares) | 106 | 112 | 129 |
Basic earnings per share from continuing operations attributable to WTW | $ 10.01 | $ 9.36 | $ 16.68 |
Dilutive effect of potentially issuable shares | (0.06) | (0.02) | (0.05) |
Diluted earnings per share from continuing operations attributable to WTW | 9.95 | 9.34 | 16.63 |
Basic (loss)/earnings per share from discontinued operations, net of tax | 0 | (0.36) | 16.2 |
Dilutive effect of potentially issuable shares | 0 | 0 | (0.05) |
Diluted (loss)/earnings per share from discontinued operations, net of tax | $ 0 | $ (0.36) | $ 16.15 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 |
Restricted share units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 0.2 | 0.3 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Supplemental disclosures of cash flow information: | ||||
Cash and cash equivalents | $ 1,424 | $ 1,262 | $ 4,486 | |
Fiduciary funds (included in fiduciary assets) | 2,368 | 3,459 | 3,203 | |
Cash and cash equivalents and fiduciary funds (included in current assets held for sale) | 0 | 0 | 2 | |
Total cash, cash equivalents and restricted cash | 3,792 | 4,721 | 7,691 | |
Increase/(decrease) in cash, cash equivalents and other restricted cash | [1] | (940) | (2,806) | 1,517 |
Cash payments for income taxes, net | 348 | 428 | 570 | |
Cash payments for interest | 223 | 201 | 212 | |
Cash acquired | 0 | 30 | 5 | |
Supplemental disclosures of non-cash investing and financing activities: | ||||
Non-cash consideration received | 0 | 63 | 0 | |
Fair value of deferred and contingent consideration related to acquisitions | 3 | 28 | 21 | |
Non-Fiduciary [Member] | ||||
Supplemental disclosures of cash flow information: | ||||
Increase/(decrease) in cash, cash equivalents and other restricted cash | 163 | (3,177) | 2,425 | |
Fiduciary [Member] | ||||
Supplemental disclosures of cash flow information: | ||||
Increase/(decrease) in cash, cash equivalents and other restricted cash | $ (1,103) | $ 371 | $ (908) | |
[1] The amounts of cash, cash equivalents and restricted cash, their respective classification on the consolidated balance sheets as well as their respective portions of the increase or decrease in cash, cash equivalents and restricted cash for each of the periods presented have been included in Note 21 — Supplemental Disclosures of Cash Flow Information. |