Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Willis Towers Watson Plc. | |
Entity Central Index Key | 1,140,536 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 138,440,802 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Revenues | |||
Commissions, fees and consulting revenue | $ 2,219 | $ 1,081 | |
Interest and other income | 15 | 6 | |
Total revenues | 2,234 | 1,087 | |
Costs of providing services | |||
Salaries and benefits | 1,196 | 567 | |
Other operating expenses | 431 | 160 | |
Depreciation | 43 | 22 | |
Amortization | 161 | 14 | |
Restructuring costs | 25 | 31 | |
Integration expenses | 52 | 0 | |
Total costs of providing services | 1,908 | 794 | |
Income from operations | 326 | 293 | |
Interest expense | 46 | 33 | |
Other expense, net | 18 | 6 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 262 | 254 | |
Provision for income taxes | 18 | 56 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 244 | 198 | |
Interest in earnings of associates, net of tax | 1 | 16 | |
NET INCOME | 245 | 214 | |
Income attributable to non-controlling interests | (7) | (4) | |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | $ 238 | $ 210 | |
EARNINGS PER SHARE | |||
Basic earnings per share (usd per share) | [1] | $ 1.76 | $ 3.09 |
Diluted earnings per share (usd per share) | [1] | 1.75 | 3.04 |
Cash dividends declared per share (usd per share) | [1] | $ 0.48 | $ 0.82 |
[1] | Basic and diluted earnings per share, and cash dividends declared per share, for the three months ended March 31, 2015 have been retroactively adjusted to reflect the reverse stock split on January 4, 2016. See Note 3 — Merger, Acquisitions and Divestitures for further details. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 245 | $ 214 |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation | 6 | (112) |
Pension funding adjustments | 2 | 230 |
Hedge effectiveness | (22) | (11) |
Other comprehensive (loss) income, net of tax and before non-controlling interests | (14) | 107 |
Comprehensive income before non-controlling interests | 231 | 321 |
Less: Comprehensive (income) loss attributable to non-controlling interest | (9) | 3 |
Comprehensive income attributable to Willis Towers Watson | $ 222 | $ 324 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 954 | $ 532 |
Fiduciary assets | 12,031 | 10,458 |
Accounts receivable, net | 2,268 | 1,258 |
Prepaid and other current assets | 326 | 255 |
Total current assets | 15,579 | 12,503 |
Noncurrent assets | ||
Fixed assets, net | 790 | 563 |
Goodwill | 10,477 | 3,737 |
Other intangible assets, net | 5,086 | 1,115 |
Pension benefits assets | 749 | 623 |
Other non-current assets | 348 | 298 |
Total non-current assets | 17,450 | 6,336 |
TOTAL ASSETS | 33,029 | 18,839 |
Current liabilities | ||
Fiduciary liabilities | 12,031 | 10,458 |
Deferred revenue and accrued expenses | 1,109 | 752 |
Short-term debt and current portion of long-term debt | 1,144 | 988 |
Other current liabilities | 972 | 603 |
Total current liabilities | 15,256 | 12,801 |
Noncurrent liabilities | ||
Long-term debt | 2,767 | 2,278 |
Liability for pension benefits | 1,210 | 279 |
Deferred tax liabilities | 1,234 | 240 |
Provision for liabilities | 600 | 295 |
Other non-current liabilities | 605 | 533 |
Total non-current liabilities | 6,416 | 3,625 |
TOTAL LIABILITIES | 21,672 | 16,426 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
REDEEMABLE NONCONTROLLING INTEREST | 53 | 53 |
EQUITY | ||
Preference shares, $0.000115 nominal value; Authorized: 1,000,000,000; Issued nil shares in 2016 and 2015 | 0 | 0 |
Additional paid-in capital | 10,436 | 1,672 |
Retained earnings | 1,771 | 1,597 |
Accumulated other comprehensive loss, net of tax | (1,053) | (1,037) |
Treasury shares, at cost, 17,519 shares in 2016 and 2015, and 40,000 shares, €1 nominal value, in 2016 and 2015 | (3) | (3) |
Total Willis Towers Watson shareholders’ equity | 11,151 | 2,229 |
Noncontrolling interests | 153 | 131 |
Total equity | 11,304 | 2,360 |
TOTAL LIABILITIES AND EQUITY | 33,029 | 18,839 |
Ordinary shares, $0.000304635 nominal value | ||
EQUITY | ||
Ordinary shares | 0 | 0 |
Ordinary shares, €1 nominal value | ||
EQUITY | ||
Ordinary shares | $ 0 | $ 0 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) | Mar. 31, 2016$ / sharesshares | Mar. 31, 2016€ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2015€ / sharesshares |
Ordinary shares, $0.000304635 nominal value | ||||
Ordinary shares, nominal value | $ / shares | $ 0.000304635 | $ 0.000304635 | ||
Ordinary shares, shares authorized | 1,510,003,775 | 1,510,003,775 | 1,510,003,775 | 1,510,003,775 |
Ordinary shares, shares issued | 138,398,396 | 138,398,396 | 68,624,892 | 68,624,892 |
Preference shares, nominal value | $ / shares | $ 0.000115 | $ 0.000115 | ||
Preference shares, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Preference shares, shares issued | 0 | 0 | 0 | 0 |
Treasury shares | 17,519 | 17,519 | 17,519 | 17,519 |
Ordinary shares, €1 nominal value | ||||
Ordinary shares, nominal value | € / shares | € 1 | € 1 | ||
Ordinary shares, shares authorized | 40,000 | 40,000 | 40,000 | 40,000 |
Ordinary shares, shares issued | 40,000 | 40,000 | 40,000 | 40,000 |
Treasury shares | 40,000 | 40,000 | 40,000 | 40,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | ||
NET INCOME | $ 245 | $ 214 |
Adjustments to reconcile net income to total net cash from (used in) operating activities: | ||
Depreciation | 43 | 22 |
Amortization of intangible assets | 161 | 14 |
Net periodic benefit of defined benefit pension plans | (23) | (13) |
Provision for doubtful accounts | 13 | 0 |
(Benefit from) provision for deferred income taxes | (70) | 12 |
Share-based compensation | 35 | 18 |
Effect of exchange rate changes on net income | 5 | 41 |
Other, net | 0 | (22) |
Changes in operating assets and liabilities, net of effects from purchase of subsidiaries: | ||
Accounts receivable | (161) | (152) |
Fiduciary assets | (1,379) | (749) |
Fiduciary liabilities | 1,379 | 749 |
Other assets | (118) | (48) |
Other liabilities | (81) | (149) |
Movement on provisions | 69 | (1) |
Net cash from (used in) operating activities | 118 | (64) |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | ||
Additions to fixed assets and software for internal use | (48) | (17) |
Capitalized software costs | (18) | 0 |
Acquisitions of operations, net of cash acquired | 469 | (8) |
Redemptions of held-to-maturity investments | 11 | 0 |
Sales and redemptions of available for sale securities | 9 | 0 |
Other, net | (6) | 17 |
Net cash from (used in) investing activities | 417 | (8) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net payments on revolving credit facility | (338) | 0 |
Senior notes issued | 997 | 0 |
Proceeds from issue of other debt | 400 | 0 |
Debt issuance costs | 0 | (1) |
Repayments of debt | (1,181) | (4) |
Repurchase of shares | 0 | (15) |
Proceeds from issuance of shares and excess tax benefit | 11 | 38 |
Dividends paid | 0 | (54) |
Acquisitions of and dividends paid to noncontrolling interests | (4) | (3) |
Net cash provided by (used in) financing activities | (115) | (39) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 420 | (111) |
Effect of exchange rate changes on cash and cash equivalents | 2 | (21) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 532 | 635 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 954 | 503 |
Supplemental disclosures: | ||
Cash paid for interest | 63 | 54 |
Cash paid for income taxes, net | 49 | 19 |
Issuance of shares and assumed awards in connection with the Merger | $ 8,723 | $ 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Millions | Total | Shares outstanding | Ordinary shares and APIC | [2] | Retained Earnings | Treasury Shares | AOCL | [3] | Total WTW shareholders’ equity | Noncontrolling Interests | Redeemable Noncontrolling interests | ||
Equity, beginning balance (in shares) at Dec. 31, 2014 | [1] | 67,460 | |||||||||||
Equity, beginning balance at Dec. 31, 2014 | $ 2,007 | $ 1,524 | $ 1,530 | $ (3) | $ (1,066) | $ 1,985 | $ 22 | ||||||
Temporary equity, beginning balance at Dec. 31, 2014 | [4] | $ 59 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Shares repurchased (in shares) | [1] | (109) | |||||||||||
Shares repurchased | (15) | (15) | (15) | ||||||||||
Net income | 213 | 210 | 210 | 3 | |||||||||
Net income | [4] | 1 | |||||||||||
Net income | 214 | ||||||||||||
Dividends | (57) | (56) | (56) | (1) | (3) | [4] | |||||||
Other comprehensive income/(loss) | 113 | 114 | 114 | (1) | |||||||||
Other comprehensive income/(loss) | [4] | (6) | |||||||||||
Other comprehensive income/(loss) | 107 | ||||||||||||
Issue of shares under employee stock compensation plans and related tax benefits (in shares) | [1] | 444 | |||||||||||
Issue of shares under employee stock compensation plans and related tax benefits | 37 | 37 | 37 | ||||||||||
Share-based compensation | 18 | 18 | 18 | ||||||||||
Foreign currency translation | 5 | 5 | 5 | ||||||||||
Equity, ending balance (in shares) at Mar. 31, 2015 | [1] | 67,795 | |||||||||||
Equity, ending balance at Mar. 31, 2015 | 2,321 | 1,584 | 1,669 | (3) | (952) | 2,298 | 23 | ||||||
Temporary equity, ending balance at Mar. 31, 2015 | [4] | 51 | |||||||||||
Equity, beginning balance (in shares) at Dec. 31, 2015 | [1] | 68,625 | |||||||||||
Equity, beginning balance at Dec. 31, 2015 | 2,360 | 1,672 | 1,597 | (3) | (1,037) | 2,229 | 131 | ||||||
Temporary equity, beginning balance at Dec. 31, 2015 | [4] | 53 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 244 | 238 | 238 | 6 | |||||||||
Net income | [4] | 1 | |||||||||||
Net income | 245 | ||||||||||||
Dividends | (64) | (64) | (64) | (3) | [4] | ||||||||
Other comprehensive income/(loss) | (16) | (16) | (16) | ||||||||||
Other comprehensive income/(loss) | [4] | 2 | |||||||||||
Other comprehensive income/(loss) | (14) | ||||||||||||
Issue of shares under employee stock compensation plans and related tax benefits (in shares) | [1] | 273 | |||||||||||
Issue of shares under employee stock compensation plans and related tax benefits | 10 | 10 | 10 | ||||||||||
Issue of shares for acquisitions (in shares) | [1] | 69,500 | |||||||||||
Issue of shares for acquisitions | 8,686 | 8,686 | 8,686 | ||||||||||
Replacement share-based compensation awards issued on acquisition | 37 | 37 | 37 | ||||||||||
Share-based compensation | 35 | 35 | 35 | ||||||||||
Additional noncontrolling interests | 15 | (1) | (1) | 16 | |||||||||
Foreign currency translation | (3) | (3) | (3) | ||||||||||
Equity, ending balance (in shares) at Mar. 31, 2016 | [1] | 138,398 | |||||||||||
Equity, ending balance at Mar. 31, 2016 | $ 11,304 | $ 10,436 | $ 1,771 | $ (3) | $ (1,053) | $ 11,151 | $ 153 | ||||||
Temporary equity, ending balance at Mar. 31, 2016 | [4] | $ 53 | |||||||||||
[1] | The nominal value of the ordinary shares and the number of ordinary shares issued in the three months ended March 31, 2015 have been retrospectively adjusted to reflect the reverse stock split on January 4, 2016. See Note 3 — Merger, Acquisitions and Divestitures for further details | ||||||||||||
[2] | Additional paid-in capital (‘APIC’) | ||||||||||||
[3] | Additional other comprehensive loss, net of tax (‘AOCL’) | ||||||||||||
[4] | In accordance with the requirements of Accounting Standards Codification 480-10-S99-3A, we have determined that the noncontrolling interest in Max Matthiessen Holding AB should be disclosed as a redeemable noncontrolling interest and presented within mezzanine or temporary equity. |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Willis Towers Watson is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. The Company provides both specialized risk management advisory, broking and consulting services on a global basis to clients engaged in specific industrial and commercial activities, and services to small, medium and large corporations through its retail operations. 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. We help organizations improve performance through effective people, risk and financial management by focusing on providing human capital and financial consulting services. In our capacity as an advisor, insurance and reinsurance broker, the Company acts as an intermediary between clients and insurance carriers by advising clients on risk management requirements, helping clients determine the best means of managing risk, and negotiating and placing insurance risk with insurance carriers through the Company’s global distribution network. In our capacity as a consultant, technology and solutions provider and private exchange company, we help our clients enhance business performance by improving their ability to attract, retain and motivate qualified employees. We focus on delivering consulting services that help organizations anticipate, identify and capitalize on emerging opportunities in human capital management as well as investment advice to help our clients develop disciplined and efficient strategies to meet their investment goals. We operate the largest private Medicare exchange in the United States. Through this exchange, we help our clients move to a more sustainable economic model by capping and controlling the costs associated with retiree healthcare benefits. We believe our broad perspective allows us to see the critical intersections between talent, assets and ideas - the dynamic formula that drives business performance. See Note 3 — Merger, Acquisitions and Divestitures for information related to our Merger with Towers Watson. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying unaudited quarterly condensed consolidated financial statements of Willis Towers Watson and our subsidiaries are presented in accordance with the rules and regulations of the Securities and Exchange Commission (‘SEC’) for quarterly reports on Form 10-Q and therefore do not include all of the information and footnotes required by U.S. generally accepted accounting principles (‘GAAP’). We have reclassified certain prior period amounts to conform to current period presentation. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial statements and results for the interim periods. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements should be read together with the Willis Towers Watson audited consolidated financial statements and notes thereto attached as Exhibit 99.1 to the Form 8-K filed with the SEC on March 10, 2016, and may be accessed via EDGAR on the SEC’s web site at www.sec.gov. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results that can be expected for the entire year. The results reflect certain estimates and assumptions made by management including those estimates used in calculating acquisition consideration and fair value of tangible and intangible assets and liabilities, professional liability claims, estimated bonuses, valuation of billed and unbilled receivables, and anticipated tax liabilities that affect the amounts reported in the condensed consolidated financial statements and related notes. Significant Accounting Policies The significant accounting policies listed below are an enhancement of the accounting policies disclosed in the Company’s audited financial statements attached as Exhibit 99.1 to the Form 8-K filed with the SEC on March 10, 2016. These policies and estimates have been added or amended due to the Merger. Accounts Receivable — Accounts receivable includes both billed and unbilled receivables and are stated at estimated net realizable values. Allowances for billed receivables are 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. Revenue Recognition — Revenue includes insurance commissions, fees for consulting services rendered, hosted and delivered software, survey sales, investment income and other income. Revenue recognized in excess of billings is recorded as unbilled accounts receivable. Cash collections in excess of revenue recognized are recorded as deferred revenue until the revenue recognition criteria are met. 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 are included in other operating expenses as a cost of revenue. Commissions revenue. Brokerage income and fees negotiated in lieu of brokerage are recognized at the later of the policy inception date or when the policy placement is complete. In situations in which our fees are not fixed and determinable due to the uncertainty of the commission fee per policy, we recognize revenue as the fees are determined. Commissions on additional premiums and adjustments are recognized when approved by or agreed between the parties and collectability is reasonably assured. Consulting revenue. The majority of our consulting revenue consists of fees earned from providing consulting services. We recognize revenue from these consulting engagements when hours are worked, either on a time-and-expense basis or on a fixed-fee basis, depending on the terms and conditions defined at the inception of an engagement with a client. 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. Individual billing rates are principally based on a multiple of salary and compensation costs. Revenue for fixed-fee arrangements is based upon the proportional performance method to the extent estimates can be made of the remaining work required under the arrangement. If we do not have sufficient information to estimate proportional performance, we recognize the fees straight-line over the contract period. We typically have four types of fixed-fee arrangements: annual recurring projects, projects of a short duration, stand-ready obligations and non-recurring system projects. ◦ Annual recurring projects and projects of short duration. These projects are typically straightforward and highly predictable in nature. As a result, the project manager and financial staff are able to identify, as the project status is reviewed and bills are prepared monthly, the occasions when cost overruns could lead to the recording of a loss accrual. ◦ Stand-ready obligations. Where we are entitled to fees (whether fixed or variable based on assets under management or a per-participant per-month basis) regardless of the hours, we generally recognize this revenue on either a straight-line basis or as the variable fees are calculated. ◦ Non-recurring system projects. These projects are longer in duration and subject to more changes in scope as the project progresses. Certain software or outsourced administration contracts generally provide that if the client terminates a contract, we are entitled to payment for services performed through termination. Revenue recognition for fixed-fee engagements is affected by a number of factors that change the estimated amount of work required to complete the project such as changes in scope, the staffing on the engagement and/or the level of client participation. The 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. We have experienced certain costs in excess of estimates from time to time. Hosted software. We have developed various software programs and technologies that we provide to clients in connection with consulting services. In most instances, such software is hosted and maintained by us and ownership of the technology and rights to the related code remain with us. We defer costs for software developed to be utilized in providing services to a client, but for which the client does not have the contractual right to take possession, during the implementation stage. We recognize these deferred costs from the go live date, signaling the end of the implementation stage, until the end of the initial term of the contract with the client. We determined that the system implementation and customized ongoing administrative services are one combined service. Revenue is recognized over the service period, after the go live date, in proportion to the services performed. As a result, we do not recognize revenue during the implementation phase of an engagement. Delivered software. We deliver software under arrangements with clients that take possession of our software. The maintenance associated with the initial software fees is a fixed percentage which enables us to determine the stand-alone value of the delivered software separate from the maintenance. We recognize the initial software fees as software is delivered to the client and we recognize the maintenance ratably over the contract period based on each element’s relative fair value. For software arrangements in which initial fees are received in connection with mandatory maintenance for the initial software license to remain active, we determined that the initial maintenance period is substantive. Therefore, we recognize the fees for the initial license and maintenance bundle ratably over the initial contract term, which is generally one year . Each subsequent renewal fee is recognized ratably over the contractually stated renewal period. Surveys. We collect, analyze and compile data in the form of surveys for our clients who have the option of participating in the survey. The surveys are published online via a web tool that provides simplistic functionality. We have determined that the web tool is inconsequential to the overall arrangement. We record the survey revenue when the results are delivered online and made available to our clients that have a contractual right to the data. If the data is updated more frequently than annually, we recognize the survey revenue ratably over the contractually stated period. Investment income. Investment income is recognized as earned. Other Income. Other income comprises 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. Recent Accounting Pronouncements Not yet adopted In May 2014, the Financial Accounting Standards Board (‘FASB’) issued Accounting Standard Update (‘ASU’) No. 2014-09 ‘Revenue From Contracts With Customers’. The new standard supersedes most current revenue recognition guidance and eliminates industry-specific guidance. The ASU is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. The ASU was originally scheduled to become effective for the Company at the beginning of its 2017 fiscal year; early adoption was not initially permitted. However, in August 2015, the FASB issued ASU No. 2015-14 ‘Revenue from Contracts from Customers: Deferral of the Effective Date’ deferring the effective date but permitting early adoption at the original effective date. Consequently, the guidance will now become mandatorily effective for the Company at the beginning of its 2018 fiscal year. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard and the Company is still evaluating its adoption methodology decision. In March 2016, the FASB issued ASU No. 2016-08 ‘Revenue from Contracts with Customers: Principal versus agent considerations’ and in April 2016, the FASB issued ASU No. 2016-10 ‘Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing’, both of which provide additional guidance and examples for the implementation of ASU No. 2014-09. The Company is currently assessing the impact that the standard and related updates will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01 ‘Recognition and Measurement of Financial Assets and Financial Liabilities’, which, among other things, amends the classification and measurement requirements for investments in equity securities and amends the presentation requirements for certain fair value changes for certain financial liabilities measured at fair value. The ASU becomes effective for the Company at the beginning of the 2018 fiscal year; only partial early adoption is permitted. The Company is required to apply a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 ‘Leases’, which requires a lessee to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The ASU becomes effective for the Company at the beginning of the 2019 fiscal year; early adoption is permitted. In transition, the Company is required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07 ‘Investments - Equity Method and Joint Venture’, which simplifies the accounting for equity method investments. The amendments in the ASU eliminate the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The ASU becomes effective for the Company at the beginning of the 2017 fiscal year; early adoption is permitted. The ASU is to be applied prospectively. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 ‘Compensation - Stock Compensation’, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The ASU becomes effective for the Company at the beginning of the 2017 fiscal year; early adoption is permitted. Certain applications of the ASU are to be applied prospectively or retrospectively with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. Adopted in the current period In June 2014, the FASB issued ASU No. 2014-12 ‘Stock Compensation’, which sets out the guidance where share-based payment awards granted to employees required specific performance targets to be achieved in order for employees to become eligible to vest in the awards and such performance targets could be achieved after an employee completes the requisite service period. The amendment in this update requires a performance target that affects vesting and that could be achieved after the requisite service period to be treated as a performance condition. The Company adopted this standard on January 1, 2016. The adoption has no material impact to the Company’s consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16 ‘Simplifying the Accounting for Measurement-Period Adjustments’ in relation to business combinations, which requires that an acquirer recognize adjustments to provisional amounts that are identified in the measurement period in the reporting period in which the adjustment amounts are determined. The Company adopted this standard on January 1, 2016. Adjustments made to provisional amounts related to business combinations are reflected in the condensed consolidated financial statements and disclosed in Note 7 — Goodwill and Intangible Assets and Note 3 — Merger, Acquisitions and Divestitures to these financial statements. |
Merger, Acquisitions and Divest
Merger, Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Merger, Acquisitions and Divestitures | Merger, Acquisitions and Divestitures Merger On January 4, 2016, pursuant to the Agreement and Plan of Merger, dated June 29, 2015, as amended on November 19, 2015, between Willis, Towers Watson, and Citadel Merger Sub, Inc., a wholly-owned subsidiary of Willis formed for the purpose of facilitating this transaction (‘Merger Sub’), Merger Sub merged with and into Towers Watson, with Towers Watson continuing as the surviving corporation and a wholly-owned subsidiary of Willis. Towers Watson was a leading global professional services firm operating throughout the world, dating back more than 100 years . The Merger will allow the combined firm to go to market with complementary strategic product and services offerings. At the effective time of the Merger (the ‘Effective Time’), each issued and outstanding share of Towers Watson common stock (the ‘Towers Watson shares’), was converted into the right to receive 2.6490 validly issued, fully paid and nonassessable ordinary shares of Willis (the ‘Willis ordinary shares’), $0.000115 nominal value per share, other than any Towers Watson shares owned by Towers Watson, Willis or Merger Sub at the Effective Time and the Towers Watson shares held by stockholders who are entitled to and who properly exercised dissenter’s rights under Delaware law. Immediately following the Merger, Willis effected (i) a consolidation (i.e., a reverse stock split under Irish law) of Willis ordinary shares whereby every 2.6490 Willis ordinary shares were consolidated into one Willis ordinary share $0.000304635 nominal value per share and (ii) an amendment to its Constitution and other organizational documents to change its name from Willis Group Holdings Public Limited Company to Willis Towers Watson Public Limited Company. On December 29, 2015, the third business day immediately prior to the closing date, Towers Watson declared and paid the Towers Watson pre-merger special dividend, in an amount of $10.00 per share of Towers Watson common stock, approximately $694 million in the aggregate based on approximately 69 million Towers Watson shares issued and outstanding at December 29, 2015. On December 30, 2015, all Towers Watson treasury stock was canceled. The Merger was accounted for using the acquisition method of accounting with Willis considered the accounting acquirer of Towers Watson. The table below presents the preliminary calculation of aggregate Merger Consideration . January 4, 2016 Number of shares of Towers Watson common stock outstanding as of January 4, 2016 69 million Exchange ratio 2.6490 Number of Willis Group Holdings shares issued (prior to reverse stock split) 184 million Willis Group Holdings price per share on January 4, 2016 $ 47.18 Fair value of 184 million Willis ordinary shares $ 8,686 Value of equity awards assumed 37 Preliminary estimated aggregate Merger Consideration $ 8,723 A summary of the preliminary fair values of the identifiable assets acquired, and liabilities assumed, of Towers Watson at January 4, 2016 are summarized in the following table. January 4, 2016 Cash and cash equivalents $ 476 Accounts receivable, net 825 Other current assets 78 Fixed assets, net 207 Goodwill 6,702 Other intangible assets (i) 4,111 Pension benefits assets 67 Other non-current assets 85 Deferred tax liabilities (1,174 ) Liability for pension benefits (941 ) Other current liabilities (707 ) Other non-current liabilities (266 ) Long term debt, including current portion (ii) (740 ) Allocated Aggregate Merger Consideration $ 8,723 ______________________________ i. Represents identified finite-lived intangible assets; primarily relates to customer relationships and software and other marketing related intangibles. ii. Represents both debt due upon change of control of $400 million borrowed under Towers Watson’s term loan ( $188 million ) and revolving credit facility ( $212 million ) and an additional draw down under a new term loan of $340 million . The $400 million debt was repaid by Willis borrowings under the 1-year term loan facility on January 4, 2016. The $340 million new term loan partially funded the $694 million Towers Watson pre-merger special dividend. Upon completion of the fair value assessment following the Merger, the Company anticipates the ultimate fair values of the net assets acquired, including all tax-related assets and liabilities, will differ from the preliminary assessment outlined above. Generally, changes to the initial estimates of the fair value of assets and liabilities will be recorded as adjustments to those assets and liabilities and residual amounts will be allocated to goodwill. Goodwill is calculated as the difference between the acquisition date fair value of the net assets acquired, and represents the value of the Legacy Towers Watson assembled workforce and the future economic benefits that we expect to achieve as a result of the Merger. None of the goodwill recognized on the transaction is tax deductible. The acquired intangible assets are attributable to the following categories: Amortization basis Fair Value Expected life (years) Customer relationships In line with underlying cash flows $ 2,231 7 - 17 Software In line with underlying cash flows or straight line basis 728 1 - 10 Product In line with underlying cash flows 47 20 IPR&D (i) n/a 91 n/a Trade name Straight line basis 1,003 25 Favorable lease agreements Straight line basis 11 4-11 $ 4,111 ______________________________ i. Represents software not yet placed in service as of the acquisition date. Once placed into service, each In process research and development (‘IPR&D’) software component will be reclassified into finite-lived software intangible assets and amortized in line with underlying cash flows or straight line basis. The following pro forma financial information is unaudited and is intended to reflect the impact of the Merger on Willis Towers Watson’s consolidated financial statements as if the Merger had taken place on January 1, 2015 and presents the results of operations of Willis Towers Watson based on the historical financial statements of Willis and Towers Watson after giving effect to the Merger and pro forma adjustments. Pro forma adjustments are included only to the extent they are (i) directly attributable to the Merger, (ii) factually supportable and (iii) with respect to the consolidated statement of operations, expected to have a continuing impact on the combined results. The accompanying unaudited pro forma financial information is presented for illustrative purposes only and has not been adjusted to give effect to certain expected financial benefits of the Merger, such as revenue synergies, tax savings and cost synergies, or the anticipated costs to achieve these benefits, including the cost of integration activities. The unaudited pro forma results are not indicative of what would have occurred had the Merger taken place on the indicated date. Three Months Ended March 31, As reported Pro Forma 2016 2015 Total revenues $ 2,234 $ 2,012 Net income attributable to Willis Towers Watson $ 238 $ 251 Diluted earnings per share $ 1.75 $ 1.82 The above pro forma financial information for the three months ended March 31, 2015 does not reflect the impact of the Gras Savoye acquisition, had the Gras Savoye transaction, in addition to the Merger, taken place on January 1, 2015, as the effects to Willis Towers Watson’s consolidated financial statements were not material. Acquired Share-Based Compensation Plans In connection with our Merger with Towers Watson on January 4, 2016 , we assumed certain stock options and restricted stock units (‘RSU’) issued under the Towers Watson & Co. 2009 Long Term Incentive Plan (‘LTIP’), the Liazon Corporation 2011 Equity Incentive Plan, and the Extend Health, Inc. 2007 Equity Incentive Plan. Stock Options. The outstanding unvested employee stock options were converted into 592,486 Willis Towers Watson stock options using the conversion ratios stated in the agreement for the number of options. The fair value of the stock options was calculated using the Black-Scholes model with a volatility and risk-free interest rate over the expected term of each group of options using the fair value share price of Willis Towers Watson’s closing share price on the date of acquisition. We determined the fair value of the portion of the outstanding options related to pre-acquisition employee service using Willis Towers Watson straight-line expense methodology from the date of grant to the acquisition date to be $7 million which was added to the transaction consideration. The fair value of the remaining portion of options related to the post-acquisition employee services was $13 million , and will be recorded over the future vesting periods. Restricted Stock Units. The outstanding unvested restricted stock units were converted into 597,307 Willis Towers Watson restricted stock units using the conversion ratios stated in the agreement. The fair value of these restricted stock units was calculated using the fair value share price of Willis Towers Watson’s closing share price on the date of acquisition. We determined the fair value of the portion of the outstanding RSUs related to pre-acquisition employee service using Willis Towers Watson straight-line expense methodology from the date of grant to the acquisition date to be $30 million which was added to the transaction consideration. The fair value of the remaining portion of RSUs related to the post-acquisition employee services was $32 million , and will be recorded over the future vesting periods. Gras Savoye Acquisition On December 29, 2015, Legacy Willis completed the transaction to acquire substantially all of the remaining 70% of the outstanding share capital of Gras Savoye, the leading insurance broker in France, for total consideration of €544 million ( $592 million ) of which $582 million in cash was paid at closing. Additionally, the previously held equity interest in Gras Savoye was remeasured to a fair value of €221 million ( $241 million ) giving a total fair value on a 100% basis of €765 million ( $833 million ). The union combines the Company’s global insurance broking footprint with Gras Savoye’s particularly strong presence in France, Central and Eastern Europe, and across Africa. Gras Savoye’s expertise in high-growth markets and industry sectors complements the Company’s global strengths, creating value for clients. The Company funded the cash consideration with a 1 -year term loan. The amount outstanding on our 1 -year term loan as of March 31, 2016 was $617 million and is included in short-term debt and current portion of long-term debt on the consolidated balance sheets. Deferred consideration is payable on the first and second anniversary of the acquisition. The discounted fair value of the deferred consideration is $10 million . None of the goodwill recognized on the transaction is tax deductible. The following table presents the Company’s preliminary allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values: December 29, 2015 Cash and cash equivalents $ 87 Fiduciary assets 625 Accounts receivable, net 90 Goodwill 573 Intangible assets 445 Other assets 55 Fiduciary liabilities (625 ) Deferred revenue and accrued expenses (80 ) Short and long-term debt (80 ) Net deferred tax liabilities (89 ) Other liabilities (178 ) Net assets acquired 823 Decrease in paid in capital for purchase of noncontrolling interest 50 Noncontrolling interest acquired (40 ) Preliminary purchase price allocation $ 833 The purchase price allocation as of the date of acquisition was based on a preliminary valuation and is subject to revision within the purchase price allocation period as more detailed analysis is completed and additional information about the value of assets acquired and liabilities assumed becomes available. All aspects of the initial purchase price allocation may be subject to revision within the purchase price allocation period. The acquired intangible assets are attributable to the following categories: Amortization basis Fair Value Expected life (years) Customer relationships In line with underlying cash flows $ 332 20 Software and other intangibles Straight line basis 79 5 Trade name Straight line basis 34 14 $ 445 Miller Insurance Services LLP Acquisition On May 31, 2015, Legacy Willis completed the transaction to acquire an 85 percent interest in Miller, a leading London wholesale specialist insurance broking firm, for total consideration of $401 million including cash consideration of $232 million . Deferred consideration is payable at the first, second and third anniversaries of the acquisition. Contingent consideration is payable at the third anniversary of the acquisition and is contingent on meeting certain EBITDA performance targets. The discounted fair value of the deferred and contingent consideration, based on best estimates, is $124 million and $29 million , respectively. The purchase price allocation as of the date of acquisition was based on a valuation of the assets acquired, liabilities assumed, and contingent consideration associated with the acquisition. No revisions to the purchase price allocation have been made during the three months ended March 31, 2016 . |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are integrating Willis and Towers Watson (together, the ‘Legacy Companies’) and creating a unified platform for global growth, including to position the Company to leverage the Legacy Companies’ mutual distribution strength to enhance market penetration, expand our global footprint and create a strong platform for further innovation. Until we are integrated, we will continue to manage our business through the Legacy Company platforms. For the three months ended March 31, 2016, we had eight reportable operating segments: Willis International; Willis North America; Willis Capital, Wholesale & Reinsurance (‘CWR’); Willis GB; Towers Watson Benefits; Towers Watson Exchange Solutions; Towers Watson Risk and Financial Services; and Towers Watson Talent and Rewards. During the second quarter of 2016, we will begin managing our business and reporting our segmental results across four integrated reportable operating segments: Corporate Risk and Broking; Exchange Solutions; Human Capital and Benefits; and Investment, Risk and Reinsurance. For internal reporting and segmental reporting for the first quarter of 2016, the following items for which segmental management are not held accountable are excluded from segmental expenses: (i) costs of certain corporate functions, leadership and projects; (ii) certain litigation provisions; (iii) Merger-related integration expenses; (iv) corporate restructuring costs associated with the Operational Improvement Program for Legacy Willis segments (see Note 5 — Restructuring Costs ); (v) Merger-related amortization for Legacy Towers Watson intangible assets; (vi) share-based compensation; discretionary compensation and related payroll taxes for Legacy Towers Watson segments; and (vii) Merger-related deferred revenue adjustment for Legacy Towers Watson segments. There are no inter-segment revenues, with segments operating on a revenue-sharing basis equivalent to that used when sharing business with other third-party brokers. Management evaluates the performance of its operating segments and allocates resources to them based on segment revenue and adjusted operating income. Revenue includes amounts that were directly incurred on behalf of our clients and reimbursed by them (reimbursable expenses). The table below presents commissions and fees revenue for Legacy Willis reportable segments and revenue (net of reimbursable expenses) for Legacy Towers Watson reportable segments for the three months ended March 31, 2016 and 2015 : Three Months Ended 2016 2015 Willis International $ 481 $ 287 Willis North America 368 356 Willis Capital, Wholesale, and Reinsurance 331 296 Willis GB 139 142 Towers Watson Benefits 486 — Towers Watson Exchange Solutions 152 — Towers Watson Risk and Financial Services 144 — Towers Watson Talent and Rewards 124 — Total segment revenue $ 2,225 $ 1,081 The table below presents operating income of the reported segments for the three months ended March 31, 2016 and 2015 : Three Months Ended 2016 2015 Willis International $ 147 $ 70 Willis North America 83 78 Willis Capital, Wholesale, and Reinsurance 152 153 Willis GB 20 21 Towers Watson Benefits 173 — Towers Watson Exchange Solutions 45 — Towers Watson Risk and Financial Services 34 — Towers Watson Talent and Rewards 13 — Total segment operating income $ 667 $ 322 The table below presents a reconciliation of the information reported by segment to the consolidated amounts reported for the three months ended March 31, 2016 and 2015 : Three Months Ended 2016 2015 Revenue: Total segment revenue $ 2,225 $ 1,081 Fair value adjustment to deferred revenue in purchase accounting (32 ) — Reimbursable expenses and interest and other 41 6 Revenue $ 2,234 $ 1,087 Total segment operating income $ 667 $ 322 Differences in allocation methods (i) 13 (15 ) Fair value adjustment for deferred revenue (32 ) — Amortization (iii) (126 ) — Restructuring costs (iii) (5 ) (11 ) Merger-related integration expenses (44 ) — Provision for the Stanford litigation (50 ) — Share-based compensation (ii) (15 ) — Discretionary compensation (iv) (84 ) — Payroll tax on discretionary compensation (iv) (6 ) — Other, net 8 (3 ) Income from operations 326 293 Interest expense (46 ) (33 ) Other expense, net (18 ) (6 ) Income from continuing operations before income taxes and interest in earnings of associates $ 262 $ 254 ________________________ i. Certain costs, including costs related to corporate functions and leadership projects, are allocated to our segments based on budgeted expenses determined at the beginning of the fiscal year, as management believes that these costs are largely uncontrollable to the segment. To the extent that the actual expense base, upon which allocations are made, differs from the forecast/budget amount, a reconciling item will be created between internally allocated expenses and the actual expense that we report for GAAP purposes. ii. For Legacy Towers Watson segments, share-based compensation excludes certain share-based payments granted in conjunction with our performance bonus, which are included in discretionary compensation. iii. Legacy Willis segments include Amortization and Restructuring Costs iv. Legacy Towers Watson segments exclude discretionary compensation and related payroll taxes. The Company does not currently provide asset information by reportable segment as it does not routinely evaluate the total asset position by segment. |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs In April 2014, Legacy Willis announced a multi-year operational improvement program designed to strengthen its client service capabilities and to deliver future cost savings (hereinafter referred to as the Operational Improvement Program). The main elements of the program, which is expected to be completed by the end of 2017, include the following: • movement of more than 3,500 Legacy Willis support roles from higher cost locations to Legacy Willis facilities in lower cost locations, bringing the ratio of employees in higher cost versus lower cost near-shore and off-shore centers from approximately 80:20 to approximately 60:40; • net workforce reductions in support positions; • lease consolidation in real estate and reductions in ratios of seats per employee and square footage of floor space per employee; and • information technology systems simplification and rationalization. The Company recognized restructuring costs of $25 million and $31 million in the three months ended March 31, 2016 and 2015 , respectively, related to the Operational Improvement Program. The Company expects to incur total restructuring costs amounting to approximately $440 million through the end of 2017. An analysis of the cost for restructuring recognized in the statement of operations for the three months ended March 31, 2016 and 2015 by Legacy Willis segment, are as follows: Three Months Ended March 31, 2016 Legacy Willis International Legacy Willis North America Legacy Willis Capital, Wholesale & Reinsurance Legacy Willis GB Legacy Willis Corporate & Other Total Termination benefits $ 2 $ 1 $ — $ — $ — $ 3 Professional services and other 6 7 1 3 5 22 Total $ 8 $ 8 $ 1 $ 3 $ 5 $ 25 Three Months Ended March 31, 2015 Legacy Willis International Legacy Willis North America Legacy Willis Capital, Wholesale & Reinsurance Legacy Willis GB Legacy Willis Corporate & Other Total Termination benefits $ 2 $ 2 $ 6 $ — $ — $ 10 Professional services and other 1 5 — 4 11 21 Total $ 3 $ 7 $ 6 $ 4 $ 11 $ 31 An analysis of the total cumulative restructuring costs recognized for the Operational Improvement Program from commencement to March 31, 2016 by segment is as follows: Legacy Willis International Legacy Willis North America Legacy Willis Capital, Wholesale & Reinsurance Legacy Willis GB Legacy Willis Corporate & Other Total 2014 Termination benefits $ 3 $ 3 $ 1 $ 9 $ — $ 16 Professional services and other 2 — — 1 17 20 2015 Termination benefits $ 8 $ 8 $ 7 $ 10 $ 3 $ 36 Professional services and other 18 23 2 17 30 90 2016 Termination benefits $ 2 $ 1 $ — $ — $ — $ 3 Professional services and other 6 7 1 3 5 22 Total Termination benefits $ 13 $ 12 $ 8 $ 19 $ 3 $ 55 Professional services and other 26 30 3 21 52 132 Total $ 39 $ 42 $ 11 $ 40 $ 55 $ 187 At March 31, 2016 , the Company’s liability under the Operational Improvement Program is as follows: Termination Benefits Professional Services and Other Total Balance at January 1, 2014 $ — $ — $ — Charges incurred 16 20 36 Cash payments (11 ) (14 ) (25 ) Balance at December 31, 2014 5 6 11 Charges incurred 36 90 126 Cash payments (26 ) (85 ) (111 ) Balance at December 31, 2015 15 11 26 Charges incurred 3 22 25 Cash payments (7 ) (23 ) (30 ) Balance at March 31, 2016 $ 11 $ 10 $ 21 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Provision for income taxes for the three months ended March 31, 2016 was $18 million , compared to $56 million for the three months ended March 31, 2015 . The effective tax rate was 6.9% for the three months ended March 31, 2016 and 22.0% for the three months ended March 31, 2015 . The lower effective tax rate for the three months ended March 31, 2016 was primarily due to the change in the global mix of income impacted by the Merger as described in Note 3 — Merger, Acquisitions and Divestitures . The Merger resulted in additional deductions in jurisdictions with high statutory income tax rates, which reduced the global effective tax rate. Historically, we have not provided deferred taxes on cumulative earnings of our subsidiaries that have been reinvested indefinitely. As a result of the Merger, we changed our assertion on a portion of certain acquired Towers Watson foreign subsidiaries’ unremitted earnings and recorded a deferred tax liability through goodwill. We continue to assert that the historical cumulative earnings of our other subsidiaries are reinvested indefinitely and we do not provide deferred tax liabilities on these amounts. The Company records valuation allowances against net deferred tax assets based on whether it is more likely than not that the deferred tax assets will be realized. We have liabilities for uncertain tax positions under Accounting Standards Codification (‘ASC’) 740, Income Taxes of $56 million , excluding interest and penalties. The Company believes the outcomes that are reasonably possible within the next 12 months may result in a reduction in the liability for uncertain tax positions in the range of approximately $5 million to $10 million , excluding interest and penalties. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the cost of businesses acquired over the fair market value of identifiable net assets at the dates of acquisition. Goodwill is not amortized but is subject to impairment testing annually and whenever facts or circumstances indicate that the carrying amounts may not be recoverable. For the three months ended March 31, 2016, the Company was organized into eight reporting units which are consistent with its operating segments: Willis International, Willis North America, Willis Capital, Wholesale and Reinsurance (‘CWR’), Willis GB, Towers Watson Benefits, Towers Watson Exchange Solutions, Towers Watson Risk and Financial Services and Towers Watson Talent and Rewards - see Item 1 in our Annual Report on Form 10-K filed with the SEC on February 29, 2016, for detailed descriptions of the segments. Goodwill is allocated to these reporting units based on the original purchase price allocation for acquisitions within the reporting units. When a business entity is sold, goodwill is allocated to the entity disposed of based on the relative fair value of that entity compared with the fair value of the reporting unit in which it is included. The components of goodwill are outlined below for the three months ended March 31, 2016 : LW LW LW LW LTW LTW LTW LTW Total Balance at December 31, 2015 Goodwill, gross $ 1,120 $ 1,512 $ 1,025 $ 572 $ — $ — $ — $ — $ 4,229 Accumulated impairment losses — (492 ) — — — — — — (492 ) Goodwill, net $ 1,120 $ 1,020 $ 1,025 $ 572 $ — $ — $ — $ — $ 3,737 Purchase price allocation adjustments — — — 2 — — — — 2 Goodwill acquired during the period 2 — — — 2,987 2,240 728 747 6,704 Goodwill disposed of during the period — (5 ) — — — — — — (5 ) Foreign exchange 46 — (4 ) (3 ) — — — — 39 Balance at March 31, 2016 Goodwill, gross $ 1,168 $ 1,507 $ 1,021 $ 571 $ 2,987 $ 2,240 $ 728 $ 747 $ 10,969 Accumulated impairment losses — (492 ) — — — — — — (492 ) Goodwill, net $ 1,168 $ 1,015 $ 1,021 $ 571 $ 2,987 $ 2,240 $ 728 $ 747 $ 10,477 The following table reflects changes in the net carrying amount of the components of finite-lived intangible assets for the three months ended March 31, 2016 : Balance as of December 31, 2015 Intangible assets acquired Intangible assets disposed Amortization Foreign Exchange Balance as of March 31, 2016 Client relationships $ 920 $ 2,231 $ (3 ) $ (110 ) $ 19 $ 3,057 Management contracts 62 — — (1 ) 2 63 Software 77 728 — (38 ) 1 768 Trademark and trade name 50 1,003 — (10 ) 1 1,044 Product — 47 — (1 ) (1 ) 45 Favorable agreements 2 11 — — — 13 Other 4 1 — (1 ) 1 5 Total amortizable intangible assets $ 1,115 $ 4,021 $ (3 ) $ (161 ) $ 23 $ 4,995 We record amortization related to our finite-lived intangible assets. Exclusive of the amortization of our favorable lease agreements, for the three months ended March 31, 2016 and March 31, 2015 , we recorded amortization of $161 million and $14 million , respectively. Our acquired unfavorable lease liabilities were $33 million and $23 million as of March 31, 2016 and December 31, 2015 , respectively, and are recorded in the other noncurrent liabilities in the condensed consolidated balance sheet. In process research and development intangible assets of $91 million have not yet been placed in service and are not included in the table above. The following table reflects the carrying value of finite-lived intangible assets and liabilities as of March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Client relationships $ 3,535 $ (478 ) $ 1,293 $ (373 ) Management contracts 69 (6 ) 67 (5 ) Software 805 (37 ) 77 — Trademark and trade name 1,056 (12 ) 52 (2 ) Product 46 (1 ) — — Favorable agreements 14 (1 ) 2 — Other 8 (3 ) 8 (4 ) Total finite-lived assets $ 5,533 $ (538 ) $ 1,499 $ (384 ) Unfavorable agreements $ 35 $ (2 ) $ 23 $ — Total finite-lived intangible liabilities $ 35 $ (2 ) $ 23 $ — The weighted average remaining life of amortizable intangible assets and liabilities at March 31, 2016 was 15.0 years. The table below reflects the future estimated amortization expense for amortizable intangible assets and the rent offset resulting from amortization of the net lease intangible assets and liabilities for the remainder of 2016 and for subsequent years: Year ending December 31, Amortization Rent offset Remainder of 2016 $ 471 $ (3 ) 2017 594 (4 ) 2018 544 (3 ) 2019 488 (2 ) 2020 431 (2 ) Thereafter 2,454 (6 ) Total $ 4,982 $ (20 ) |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We are exposed to certain interest rate and 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 interest and foreign currency rates. The Company’s Board of Directors reviews and approves policies for managing each of these risks as summarized below. Interest Rate Risk - Investment Income As a result of the Company’s operating activities, the Company holds fiduciary funds. The Company earns interest on these funds, which is included in the Company’s financial statements as interest and other income. These funds are regulated in terms of access as are the instruments in which they may be invested, most of which are short-term in nature. During 2015, in order to manage interest rate risk arising from these financial assets, the Company entered into interest rate swaps to receive a fixed rate of interest and pay a variable rate of interest. These derivatives were designated as hedging instruments and as of March 31, 2016 and December 31, 2015 had a total notional amount of $300 million for each period and a net fair value of $2 million and nil , respectively. Foreign Currency Risk A number of our non-U.S. subsidiaries receive revenues and incur expenses in currencies other than their functional currency and as a result, the foreign subsidiary’s functional currency revenues will fluctuate as the currency rates change. Additionally, our London brokerage market operations forecast Pound sterling expenses may exceed Pound Sterling revenues, and may also hold a significant net sterling asset or liability position in the balance sheet. To reduce the variability, we use foreign exchange forward contracts to hedge this foreign exchange risk. These derivatives were designated as hedging instruments and as of March 31, 2016 and December 31, 2015 had a total notional amount of $1.1 billion and $1.3 billion , respectively, and net fair value liabilities of $57 million and $31 million , respectively. At March 31, 2016 the Company estimates, based on current interest and exchange rates, there will be $25 million of net derivative losses on forward exchange rates, interest rate swaps, and treasury locks reclassified from accumulated comprehensive income into earnings within the next twelve months as the forecast transactions affect earnings. At March 31, 2016 , our longest outstanding maturity was 2.7 years. We also enter into foreign currency transactions, primarily to hedge certain intercompany loans. These derivatives are not generally designated as hedging instruments and at March 31, 2016 and December 31, 2015 we had notional amounts of $958 million and $532 million , respectively, and net fair value liabilities of $13 million and nil , respectively. We recorded a loss of $12 million and a gain of $2 million in other expense, net on the condensed consolidated statements of operations for the three months ended March 31, 2016 and 2015 , respectively, for derivatives not designated as hedging instruments. We record gains or losses related to the changes in the fair value of our financial instruments for foreign exchange forward contracts accounted for as foreign currency hedges in other expense, net in the condensed consolidated statements of operations. For the three months ended March 31, 2016 , we recorded losses of $13 million for instruments still held at March 31, 2016 . For the three months ended March 31, 2015 , we recorded gains of $2 million for instruments still held at March 31, 2015 . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-term debt and current portion of long-term debt consists of the following: March 31, 2016 December 31, 2015 1-year term loan facility matures 2016 $ 617 $ 587 4.125% senior notes due 2016 — 300 6.200% senior notes due 2017 394 — Current portion of 7-year term loan facility expires 2018 22 22 Current portion of term loan expires 2019 85 — Short-term borrowing under bank overdraft arrangement 26 79 $ 1,144 $ 988 Long-term debt consists of the following: March 31, 2016 December 31, 2015 Revolving $800 million credit facility $ 135 $ 467 6.200% senior notes due 2017 — 394 7-year term loan facility expires 2018 213 218 Term loan expires 2019 232 — 7.000% senior notes due 2019 186 186 5.750% senior notes due 2021 495 495 3.500% senior notes due 2021 445 — 4.625% senior notes due 2023 247 247 4.400% senior notes due 2026 543 — 6.125% senior notes due 2043 271 271 $ 2,767 $ 2,278 Senior Notes On March 22, 2016, Willis Towers Watson issued $450 million of 3.500% senior notes due 2021 (‘2021 Notes’) and $550 million of 4.400% senior notes due 2026 (‘2026 Notes’). The effective interest rates of these senior notes are 3.707% and 4.572% , respectively, which includes the impact of the discount upon issuance. The 2021 Notes and the 2026 Notes will mature on September 15, 2021 and March 15, 2026, respectively. Interest accrues on the notes from March 22, 2016 and will be paid in cash on March 15 and September 15 of each year, commencing September 15, 2016. The net proceeds from this offering, after deducting underwriter discounts and commissions and estimated offering expenses, were $988 million . We used the net proceeds of this offering as follows: to repay $300 million principal under our $800 million revolving credit facility and related accrued interest, which was drawn to repay our 4.125% senior notes on March 15, 2016; to repay $400 million principal on the second tranche under our 1 -year term loan facility and related accrued interest; and to pay down a portion of the remaining principal amount outstanding under our $800 million revolving credit facility and related accrued interest. $800 million revolving credit facility Drawings under the $800 million revolving credit facility bear interest at LIBOR plus a margin of 1.25% to 2.00% , or alternatively the base rate plus a margin of 0.25% to 1.00% based upon the Company’s guaranteed senior unsecured long-term debt rating; a 1.375% margin applies while the Company’s debt rating remains BBB/Baa3. As of March 31, 2016 and December 31, 2015 , $135 million and $467 million was outstanding under this revolving credit facility, respectively. 7-year term loan facility The 7 -year term loan facility expiring 2018 bears interest at the same rate applicable to the $800 million revolving credit facility and is repayable in quarterly installments of $6 million and a final repayment of $186 million is due in the third quarter of 2018. 1-year term loan facility On November 20, 2015, Legacy Willis entered into a 1 -year term loan facility. The 1-year term loan has two tranches: one of €550 million , of which €544 million ( $592 million ) was drawn on December 19, 2015 and used to finance the acquisition of Gras Savoye. The second tranche of $400 million was drawn on January 4, 2016 and used to re-finance debt held by Legacy Towers Watson which became due on acquisition. The term loan facility matures on December 19, 2016. For Eurocurrency Rate Loans in U.S. dollars, advances under the term facility bear interest at a rate equal to, LIBOR or EURIBOR, plus an applicable margin of 1.25% to 2.00% , or alternatively the base rate plus a margin of 0.25% to 1.00% , provided that beginning 180 days after the initial funding date, 0.5% will be added to the applicable margin and, provided further, that the LIBOR or EURIBOR rate, as applicable, cannot be below zero . A 1.375% margin applies while the Company’s debt rating remains BBB/Baa3. The advance drawn on January 4, 2016 was repaid in its entirety on March 22, 2016 from a portion of the proceeds from the issuance of our senior notes discussed above. The amounts outstanding as of March 31, 2016 and December 31, 2015 were $620 million and $592 million , respectively, and are included in the current portion of long-term debt on the consolidated balance sheets. The debt outstanding as of March 31, 2016 and December 31, 2015 is gross of $3 million and $5 million , respectively, in debt fees related to the 1 -year term loan facility. WSI revolving credit facility Advances under the Willis Securities, Inc. (‘WSI’) revolving credit facility bear interest at a rate equal to LIBOR plus a margin of 1.25% to 2.00% , or alternatively the base rate plus a margin of 0.25% to 1.00% , based upon the Company’s guaranteed senior-unsecured long-term debt rating. A margin of 1.50% applies while the Company’s debt rating remains BBB/Baa3. As of March 31, 2016 and December 31, 2015 , there were no borrowings outstanding under the WSI revolving credit facility. On April 27, 2016, the end date of the credit period was extended to April 28, 2017 and the repayment date was extended to April 28, 2018. There were no other significant changes in the terms of this credit facility. The agreements relating to the $800 million revolving credit facility, the 7 -year term loan facility, and the 1 -year term loan contain requirements that we are not to exceed certain levels of consolidated funded indebtedness in relation to consolidated EBITDA and we are to maintain at least a minimum level of consolidated EBITDA to consolidated cash interest expense, subject to certain adjustments. In addition, the agreements relating to our facilities and senior notes include, in the aggregate, covenants relating to the delivery of financial statements, reports and notices, limitations on liens, limitations on sales and other disposals of assets, limitations on indebtedness and other liabilities, limitations on sale and leaseback transactions, limitations on mergers and other fundamental changes, maintenance of property, maintenance of insurance, nature of business, compliance with applicable laws, maintenance of corporate existence and rights, payment of taxes and access to information and properties. At March 31, 2016 and December 31, 2015 , we were in compliance with all financial covenants. Term Loan Due December 2019 On January 4, 2016, we acquired a $340 million term loan in connection with the Merger. On November 20, 2015, Towers Watson Delaware Inc. entered into a four -year amortizing term loan agreement for up to $340 million with a consortium of banks to help fund the pre-Merger special dividend. On December 28, 2015, Towers Watson Delaware Inc. borrowed the full $340 million . The interest rate on the term loan is based on the Company’s choice of one, two, three or six-month LIBOR plus a spread of 1.25% to 1.75% , or alternatively the bank base rate plus 0.25% to 0.75% . The spread to each index is dependent on the Company’s consolidated leverage ratio. The weighted-average interest rate on this term loan for the three months ended March 31, 2016 was 1.78% . The term loan amortizes at a rate of $21 million per quarter, beginning in March 2016, with a final maturity date of December 2019. The Company has the right to prepay a portion or all of the outstanding term loan balance on any interest payment date without penalty. At March 31, 2016 , the balance outstanding on the term loan was $319 million , gross of $2 million in debt issuance fees. The agreements associated with this financing contain customary representations and warranties and affirmative and negative covenants. The term loan requires Towers Watson Delaware Inc., as a consolidated entity, to maintain certain financial covenants that include a minimum Consolidated Interest Coverage Ratio and a maximum Consolidated Leverage Ratio (which terms in each case are defined in the term loan agreement). In addition, the term loan contains restrictions on the ability of Towers Watson Delaware Inc. to, among other things, incur additional indebtedness; pay dividends; make distributions; create liens on assets; make acquisitions; dispose of property; engage in sale-leaseback transactions; engage in mergers or consolidations, liquidations and dissolutions; engage in certain transactions with affiliates; and make changes in lines of businesses. Additionally, Towers Watson Delaware Inc. is prohibited from providing guarantees of debt outside of the Towers Watson Delaware Inc. consolidated entity. At March 31, 2016 , we were in compliance with all financial covenants. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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: The fair values of long-term debt instruments (excluding related fair value hedges) are not measured at fair value on a recurring basis and are based on quoted market values and are classified as Level 1 measurements, with the exception of the 7 -year term loan facility and drawings under our $800 million revolving credit facility where fair value is determined using observable market data for similar debt instruments of comparable maturities (Level 2 measure). Derivative financial instruments - Market values have been used to determine the fair value of interest rate swaps and forward foreign exchange contracts based on estimated amounts the Company would receive or have to pay to terminate the agreements, taking into account the current interest rate environment or current foreign currency forward rates. Such financial instruments are classified as Level 2 in the fair value hierarchy. Available-for-sale securities are classified as Level 1 and we generally use quoted market prices in determining the fair value of our available-for-sale securities. The following presents our assets and liabilities measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 : Fair Value Measurements on a Recurring Basis at March 31, 2016 Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities: Mutual funds / exchange traded funds $ 39 $ — $ — $ 39 Derivatives: Derivative financial instruments (i) $ — $ 15 $ — $ 15 Liabilities: Derivatives: Derivative financial instruments (i) $ — $ 83 $ — $ 83 Fair Value Measurements on a Recurring Basis at December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Derivatives: Derivative financial instruments (i) $ — $ 26 $ — $ 26 Liabilities: Derivatives: Derivative financial instruments (i) $ — $ 57 $ — $ 57 _________________________ i See Note 8 — Derivative Financial Instruments for further information on our derivative investments. The following presents our liabilities whose carrying value differs from the fair value and are not measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Liabilities: Current portion of long term debt $ 1,144 $ 1,164 $ 988 $ 998 Long-term debt $ 2,767 $ 2,922 $ 2,278 $ 2,394 The remeasurement of goodwill is classified as non-recurring level 3 fair value assessment due to the significance of unobservable inputs developed using company-specific information, see Note 7 — Goodwill and Intangible Assets . |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Benefits | Retirement Benefits Defined Benefit Plans and Post-retirement Welfare Plan Willis Towers Watson sponsors both qualified and non-qualified defined benefit pension plans and other post-retirement welfare plans (‘PRW’) plans throughout the world. The majority of our plan assets and obligations are in the United States and the United Kingdom. We have also included disclosures related to defined benefit plans in certain “other” countries, which includes Canada, Germany, Ireland and the Netherlands. Together, these disclosed funded and unfunded plans represented 99% of Willis Towers Watson’s pension and PRW obligations and are disclosed herein for the 2016 disclosures. On January 4, 2016, in connection with the Merger, we acquired additional defined benefit pension, PRW, and defined contribution plans. Total plan assets of approximately $3.7 billion and projected benefit obligations of approximately $4.6 billion were acquired. The funded status for each of the acquired plans has been included in the preliminary values of identifiable assets acquired, and liabilities assumed in Note 3 — Merger, Acquisitions and Divestitures and are recorded as $67 million in pension benefits assets and $941 million in liability for pension benefits. Significant plans acquired are described below: United States Legacy Towers Watson U.S. defined benefit pension plan – Prior to December 31, 2010 employees earned benefits under their original plan formulas, which were frozen on December 31, 2011. Beginning January 1, 2012, all Legacy Towers Watson employees, including named executive officers, accrue qualified and non-qualified benefits under a stable value pension design. The Legacy Towers Watson U.S. Defined Contribution Plan allows eligible Towers Watson U.S. associates to participate in a savings plan design that provides for 100% match on the first 2% of employee contributions and 50% match on the next 4% of employee contributions. Employees vest in the employer match upon two years of service. United Kingdom Legacy Towers Watson U.K. defined benefit pension plan – Benefit accruals earned under a 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 a Legacy Towers Perrin defined benefit plan (predominantly lump sum benefits) were frozen on March 31, 2008. All associates now accrue defined contribution benefits. The Legacy Towers Watson U.K. defined contribution plan has a money purchase feature to which we make core contributions plus additional contributions matching those of the participating associates up to a maximum rate. Contribution rates depend on the age of the participant and whether or not they arise from salary sacrifice arrangements through which the associate has elected to receive contributions in lieu of additional salary. Other In addition to the Legacy Towers Watson U.S. and U.K. defined benefit pension plans, we acquired smaller defined benefit pension plans in Canada, Germany, Ireland and the Netherlands. Post-retirement Welfare Plan Legacy Towers Watson Post-retirement Benefits – We provide certain health care and life insurance benefits for retired employees in the U.S. The principal plans cover associates in the U.S. who have met certain eligibility requirements. Our principal post-retirement benefit plans are primarily unfunded. Retiree medical benefits provided under our U.S. post-retirement benefit plans were closed to new hires effective January 1, 2011. Life insurance benefits under the plans were frozen with respect to service, eligibility and amounts as of January 1, 2012 for active associates. Components of Net Periodic Benefit Cost for Defined Benefit Pension and Post-retirement Welfare Plans The following table sets forth the components of net periodic benefit cost for the Company’s defined benefit pension and post-retirement welfare plans for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 U.S. U.K. Other PRW U.S. U.K. Other PRW Service cost $ 15 $ 6 $ 5 $ — $ — $ 10 $ 1 $ — Interest cost 34 28 6 1 10 26 2 — Expected return on plan assets (59 ) (64 ) (8 ) — (14 ) (57 ) (1 ) — Settlement — — 2 — — — — — Amortization of net loss 3 11 — — 3 9 — — Amortization of prior service (credit) — (5 ) — — — (2 ) — — Net periodic benefit (income) cost $ (7 ) $ (24 ) $ 5 $ 1 $ (1 ) $ (14 ) $ 2 $ — Employer Contributions to Defined Benefit Pension Plans The Company made no contributions to its U.S. plans for the three months ended March 31, 2016 and has not yet determined the contributions to be made over the remainder of the fiscal year. The Company made contributions of $32 million to its U.K. plans for the three months ended March 31, 2016 and anticipates making additional contributions of $78 million for the remainder of the fiscal year. The Company made contributions of $6 million to its other plans for the three months ended March 31, 2016 and anticipates making additional contributions of $17 million for the remainder of the fiscal year. Defined Contribution Plans The Company made contributions of $36 million and $14 million to its various defined contribution plans during the three months ended March 31, 2016 and 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Pensions The Company’s pension funding obligations are described in Note 11 — Retirement Benefits . Operating Leases The Company leases certain land, building and equipment under various operating lease commitments. The total amount of the minimum rent is expensed on a straight line basis over the term of the lease. During the three months ended March 31, 2016 , the Company has assumed gross real estate operating lease obligations related to the Merger with Towers Watson of approximately $459 million . Other Contractual Obligations On October 1, 2015, Legacy Towers Watson made a capital commitment of $40 million to Longitude Holdings Limited in exchange for 48,322 common shares outstanding representing 24.2% of outstanding equity ownership. As of March 31, 2016 , approximately $5 million of capital contributions had been made towards this commitment. Indemnification Agreements Willis Towers Watson 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. Although 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 Willis Towers Watson’s obligations and the unique facts of each particular agreement, Willis Towers Watson does not believe any potential liability that might arise from such indemnity provisions is probable or material. There are no provisions for recourse to third parties, nor are any assets held by any third parties that any guarantor can liquidate to recover amounts paid under such indemnities. 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. We do not expect the impact of claims or demands not described below to be material to the Company’s financial statements. 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 the 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. On the basis of current information, the Company does not expect that the actual claims, lawsuits and other proceedings to which the Company 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 the Company’s 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 particular quarterly or annual periods. 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. In re Towers Watson & Co. Stockholders Litigation Five putative class action complaints challenging the Merger were filed in the Court of Chancery for the State of Delaware, captioned New Jersey Building Laborers’ Statewide Annuity Fund v. Towers Watson & Co., et al., C.A. No. 11270-CB (filed on July 9, 2015), Stein v. Towers Watson & Co., et al., C.A. No. 11271-CB (filed on July 9, 2015), City of Atlanta Firefighters’ Pension Fund v. Ganzi, et al., C.A. No. 11275-CB (filed on July 10, 2015), Cordell v. Haley, et al., C.A. No. 11358-CB (filed on July 31, 2015), and Mills v. Towers Watson & Co., et al., C.A. No. 11423-CB (filed on August 24, 2015). The Stein action was voluntarily dismissed on July 28, 2015. These complaints were filed by purported stockholders of Towers Watson on behalf of a putative class comprised of all Towers Watson stockholders. The complaints sought, among other things, to enjoin the Merger, and generally alleged that Towers Watson’s directors breached their fiduciary duties to Towers Watson stockholders by agreeing to merge Towers Watson with Willis through an inadequate and unfair process, which led to inadequate and unfair consideration, and by agreeing to unfair deal protection devices. The complaints also alleged that Willis and the Merger Sub formed for purposes of consummating the Merger aided and abetted the alleged breaches of fiduciary duties by Towers Watson directors. On August 17, 2015, the court consolidated the New Jersey Building Laborers’ Statewide Annuity Fund, City of Atlanta Firefighters’ Pension Fund, and Cordell actions (the Mills action had not yet been filed) and any other actions then pending or thereafter filed arising out of the same issues of fact under the caption In re Towers Watson & Co. Stockholders Litigation, Consolidated C.A. No. 11270-CB. On September 9, 2015, the plaintiffs in the consolidated action and in Mills filed a consolidated amended complaint, which, among other things, added claims for alleged misstatements and omissions from a preliminary proxy statement and prospectus for the Merger dated August 27, 2015. On September 17, 2015, plaintiffs filed a motion for expedited proceedings and a motion for a preliminary injunction, which motions plaintiffs voluntarily withdrew on October 19, 2015. On December 14, 2015, the defendants filed motions to dismiss the consolidated amended complaint. On April 1, 2016, the court consolidated the Mills action into the consolidated action. On April 18, 2016, the court dismissed the consolidated action as moot, set a briefing schedule for plaintiffs’ application for an award of attorneys’ fees and reimbursement of expenses, and scheduled a hearing on plaintiffs’ fee and expense application for June 28, 2016. On April 27, 2016, plaintiffs filed a petition for an award of attorneys’ fees and expenses, requesting an aggregate fee and expense award of at least $1.7 million . Based on all of the information to date, the Company is currently unable to provide an estimate of the reasonably possible loss or range of loss. The defendants intend to vigorously oppose plaintiff’s fee and expense application. Merger-related Appraisal demands Between November 12, 2015, and December 10, 2015, in connection with the then-proposed Merger, Towers Watson received demands for appraisal under Section 262 of the Delaware General Corporation Law on behalf of ten purported beneficial owners of an aggregate of approximately 2.4% of the shares of Towers Watson common stock outstanding at the time of the Merger. As of May 10, 2016, demands for appraisal purportedly relating to 2% of the shares of Towers Watson common stock that were outstanding at the time of the Merger remain outstanding and have not been withdrawn. Between March 3, 2016 and March 23, 2016, three appraisal petitions were filed in the Court of Chancery for the State of Delaware on behalf of three purported beneficial owners of an aggregate of 1,354,338 shares of Towers Watson common stock, captioned Rangeley Capital LLC v. Towers Watson & Co., C.A. No. 12063-CB, Merion Capital L.P. v. Towers Watson & Co., C.A. No. 12064-CB, and College Retirement Equities Fund v. Towers Watson & Co., C.A. No. 12126-CB. The appraisal petitions seek, among other things, a determination of the fair value of the appraisal petitioners’ shares at the time of the Merger; an order that Towers Watson pay that value to the appraisal petitioners, together with interest at the statutory rate; and an award of costs, attorneys’ fees, and other expenses. Towers Watson answered the appraisal petitions between March 24, 2016, and April 18, 2016. On May 9, 2016, the court consolidated the three pending appraisal proceedings under the caption In re Appraisal of Towers Watson & Co., Consolidated C.A. No. 12064-CB. Based on all of the information to date, the Company is currently unable to provide an estimate of the reasonably possible loss or range of loss. The Company intends to vigorously defend against the appraisal proceedings. Stanford Financial Group The Company has been named as a defendant in 13 similar lawsuits relating to the collapse of The Stanford Financial Group (‘Stanford’), for which Willis of Colorado, Inc. acted as broker of record on certain lines of insurance. The complaints in these actions generally allege that the defendants actively and materially aided Stanford’s alleged fraud by providing Stanford with certain letters regarding coverage that they knew would be used to help retain or attract actual or prospective Stanford client investors. The complaints further allege that these letters, which contain statements about Stanford and the insurance policies that the defendants placed for Stanford, contained untruths and omitted material facts and were drafted in this manner to help Stanford promote and sell its allegedly fraudulent certificates of deposit. The 13 actions are as follows: • Troice, et al. v. Willis of Colorado, Inc., et al. , C.A. No. 3:9-CV-1274-N, was filed on July 2, 2009 in the U.S. District Court for the Northern District of Texas against Willis Group Holdings plc, Willis of Colorado, Inc. and a Willis associate, among others. On April 1, 2011, plaintiffs filed the operative Third Amended Class Action Complaint individually and on behalf of a putative, worldwide class of Stanford investors, adding Willis Limited as a defendant and alleging claims under Texas statutory and common law and seeking damages in excess of $1 billion , punitive damages and costs. On May 2, 2011, the defendants filed motions to dismiss the Third Amended Class Action Complaint, arguing, inter alia , that the plaintiffs’ claims are precluded by the Securities Litigation Uniform Standards Act of 1998 (‘SLUSA’). On May 10, 2011, the court presiding over the Stanford-related actions in the Northern District of Texas entered an order providing that it would consider the applicability of SLUSA to the Stanford-related actions based on the decision in a separate Stanford action not involving a Willis entity, Roland v. Green, Civil Action No. 3:10-CV-0224-N. On August 31, 2011, the court issued its decision in Roland, dismissing that action with prejudice under SLUSA. On October 27, 2011, the court in Troice entered an order (i) dismissing with prejudice those claims asserted in the Third Amended Class Action Complaint on a class basis on the grounds set forth in the Roland decision discussed above and (ii) dismissing without prejudice those claims asserted in the Third Amended Class Action Complaint on an individual basis. Also on October 27, 2011, the court entered a final judgment in the action. On October 28, 2011, the plaintiffs in Troice filed a notice of appeal to the U.S. Court of Appeals for the Fifth Circuit. Subsequently, Troice, Roland and a third action captioned Troice, et al. v. Proskauer Rose LLP, Civil Action No. 3:09-CV-01600-N, which also was dismissed on the grounds set forth in the Roland decision discussed above and on appeal to the U.S. Court of Appeals for the Fifth Circuit, were consolidated for purposes of briefing and oral argument. Following the completion of briefing and oral argument, on March 19, 2012, the Fifth Circuit reversed and remanded the actions. On April 2, 2012, the defendants-appellees filed petitions for rehearing en banc. On April 19, 2012, the petitions for rehearing en banc were denied. On July 18, 2012, defendants-appellees filed a petition for writ of certiorari with the United States Supreme Court regarding the Fifth Circuit’s reversal in Troice. On January 18, 2013, the Supreme Court granted our petition. Opening briefs were filed on May 3, 2013 and the Supreme Court heard oral argument on October 7, 2013. On February 26, 2014, the Supreme Court affirmed the Fifth Circuit’s decision. On March 19, 2014, the plaintiffs in Troice filed a Motion to Defer Resolution of Motions to Dismiss, to Compel Rule 26(f) Conference and For Entry of Scheduling Order. On March 25, 2014, the parties in Troice and the Janvey, et al. v. Willis of Colorado, Inc., et al. action discussed below stipulated to the consolidation of the two actions for pre-trial purposes under Rule 42(a) of the Federal Rules of Civil Procedure. On March 28, 2014, the Court ‘so ordered’ that stipulation and, thus, consolidated Troice and Janvey for pre-trial purposes under Rule 42(a). On September 16, 2014, the court (a) denied the plaintiffs’ request to defer resolution of the defendants’ motions to dismiss, but granted the plaintiffs’ request to enter a scheduling order; (b) requested the submission of supplemental briefing by all parties on the defendants’ motions to dismiss, which the parties submitted on September 30, 2014; and (c) entered an order setting a schedule for briefing and discovery regarding plaintiffs’ motion for class certification, which schedule, among other things, provided for the submission of the plaintiffs’ motion for class certification (following the completion of briefing and discovery) on April 20, 2015. On December 15, 2014, the court granted in part and denied in part the defendants’ motions to dismiss. On January 30, 2015, the defendants except Willis Group Holdings plc answered the Third Amended Class Action Complaint. On April 20, 2015, the plaintiffs filed their motion for class certification, the defendants filed their opposition to plaintiffs’ motion, and the plaintiffs filed their reply in further support of the motion. Pursuant to an agreed stipulation also filed with the court on April 20, 2015, the defendants on June 4, 2015 filed sur-replies in further opposition to the motion. The Court has not yet scheduled a hearing on the motion. On June 19, 2015, Willis Group Holdings plc filed a motion to dismiss the complaint for lack of personal jurisdiction. On November 17, 2015, Willis Group Holdings plc withdrew the motion. On March 31, 2016, the parties in the Troice and Janvey actions entered into a settlement in principle that is described in more detail below. • Ranni v. Willis of Colorado, Inc., et al. , C.A. No. 9-22085, was filed on July 17, 2009 against Willis Group Holdings plc and Willis of Colorado, Inc. in the U.S. District Court for the Southern District of Florida. The complaint was filed on behalf of a putative class of Venezuelan and other South American Stanford investors and alleges claims under Section 10(b) of the Securities Exchange Act of 1934 (and Rule 10b-5 thereunder) and Florida statutory and common law and seeks damages in an amount to be determined at trial. On October 6, 2009, Ranni was transferred, for consolidation or coordination with other Stanford-related actions (including Troice ), to the Northern District of Texas by the U.S. Judicial Panel on Multidistrict Litigation (the ‘JPML’). The defendants have not yet responded to the complaint in Ranni . On August 26, 2014, the plaintiff filed a notice of voluntary dismissal of the action without prejudice. • Canabal, et al. v. Willis of Colorado, Inc., et al. , C.A. No. 3:9-CV-1474-D, was filed on August 6, 2009 against Willis Group Holdings plc, Willis of Colorado, Inc. and the same Willis associate named as a defendant in Troice , among others, also in the Northern District of Texas. The complaint was filed individually and on behalf of a putative class of Venezuelan Stanford investors, alleged claims under Texas statutory and common law and sought damages in excess of $1 billion , punitive damages, attorneys’ fees and costs. On December 18, 2009, the parties in Troice and Canabal stipulated to the consolidation of those actions (under the Troice civil action number), and, on December 31, 2009, the plaintiffs in Canabal filed a notice of dismissal, dismissing the action without prejudice. • Rupert, et al. v. Winter, et al. , Case No. 2009C115137, was filed on September 14, 2009 on behalf of 97 Stanford investors against Willis Group Holdings plc, Willis of Colorado, Inc. and the same Willis associate, among others, in Texas state court (Bexar County). The complaint alleges claims under the Securities Act of 1933, Texas and Colorado statutory law and Texas common law and seeks special, consequential and treble damages of more than $300 million , attorneys’ fees and costs. On October 20, 2009, certain defendants, including Willis of Colorado, Inc., (i) removed Rupert to the U.S. District Court for the Western District of Texas, (ii) notified the JPML of the pendency of this related action and (iii) moved to stay the action pending a determination by the JPML as to whether it should be transferred to the Northern District of Texas for consolidation or coordination with the other Stanford-related actions. On April 1, 2010, the JPML issued a final transfer order for the transfer of Rupert to the Northern District of Texas. On January 24, 2012, the court remanded Rupert to Texas state court (Bexar County), but stayed the action until further order of the court. On August 13, 2012, the plaintiffs filed a motion to lift the stay, which motion was denied by the court on September 16, 2014. On October 10, 2014, the plaintiffs appealed the court’s denial of their motion to lift the stay to the U.S. Court of Appeals for the Fifth Circuit. On January 5, 2015, the Fifth Circuit consolidated the appeal with the appeal in the Rishmague, et ano. v. Winter, et al. action discussed below, and the consolidated appeal, was fully briefed as of March 24, 2015. Oral argument on the consolidated appeal was held on September 2, 2015. On September 16, 2015, the Fifth Circuit affirmed. The defendants have not yet responded to the complaint in Rupert . • Casanova, et al. v. Willis of Colorado, Inc., et al. , C.A. No. 3:10-CV-1862-O, was filed on September 16, 2010 on behalf of seven Stanford investors against Willis Group Holdings plc, Willis Limited, Willis of Colorado, Inc. and the same Willis associate, among others, also in the Northern District of Texas. The complaint alleges claims under Texas statutory and common law and seeks actual damages in excess of $5 million , punitive damages, attorneys’ fees and costs. On February 13, 2015, the parties filed an Agreed Motion for Partial Dismissal pursuant to which they agreed to the dismissal of certain claims pursuant to the motion to dismiss decisions in the Troice action discussed above and the Janvey action discussed below. Also on February 13, 2015, the defendants except Willis Group Holdings plc answered the complaint in the Casanova action. On June 19, 2015, Willis Group Holdings plc filed a motion to dismiss the complaint for lack of personal jurisdiction. Plaintiffs have not opposed the motion. • Rishmague, et ano. v. Winter, et al. , Case No. 2011CI2585, was filed on March 11, 2011 on behalf of two Stanford investors, individually and as representatives of certain trusts, against Willis Group Holdings plc, Willis of Colorado, Inc., Willis of Texas, Inc. and the same Willis associate, among others, in Texas state court (Bexar County). The complaint alleges claims under Texas and Colorado statutory law and Texas common law and seeks special, consequential and treble damages of more than $37 million and attorneys’ fees and costs. On April 11, 2011, certain defendants, including Willis of Colorado, Inc., (i) removed Rishmague to the Western District of Texas, (ii) notified the JPML of the pendency of this related action and (iii) moved to stay the action pending a determination by the JPML as to whether it should be transferred to the Northern District of Texas for consolidation or coordination with the other Stanford-related actions. On August 8, 2011, the JPML issued a final transfer order for the transfer of Rishmague to the Northern District of Texas, where it is currently pending. On August 13, 2012, the plaintiffs joined with the plaintiffs in the Rupert action in their motion to lift the court’s stay of the Rupert action. On September 9, 2014, the court remanded Rishmague to Texas state court (Bexar County), but stayed the action until further order of the court and denied the plaintiffs’ motion to lift the stay. On October 10, 2014, the plaintiffs appealed the court’s denial of their motion to lift the stay to the Fifth Circuit. On January 5, 2015, the Fifth Circuit consolidated the appeal with the appeal in the Rupert action, and the consolidated appeal was fully briefed as of March 24, 2015. Oral argument on the consolidated appeal was held on September 2, 2015. On September 16, 2015, the Fifth Circuit affirmed. The defendants have not yet responded to the complaint in Rishmague . • MacArthur v. Winter, et al. , Case No. 2013-07840, was filed on February 8, 2013 on behalf of two Stanford investors against Willis Group Holdings plc, Willis of Colorado, Inc., Willis of Texas, Inc. and the same Willis associate, among others, in Texas state court (Harris County). The complaint alleges claims under Texas and Colorado statutory law and Texas common law and seeks actual, special, consequential and treble damages of approximately $4 million and attorneys’ fees and costs. On March 29, 2013, Willis of Colorado, Inc. and Willis of Texas, Inc. (i) removed MacArthur to the U.S. District Court for the Southern District of Texas and (ii) notified the JPML of the pendency of this related action. On April 2, 2013, Willis of Colorado, Inc. and Willis of Texas, Inc. filed a motion in the Southern District of Texas to stay the action pending a determination by the JPML as to whether it should be transferred to the Northern District of Texas for consolidation or coordination with the other Stanford-related actions. Also on April 2, 2013, the court presiding over MacArthur in the Southern District of Texas transferred the action to the Northern District of Texas for consolidation or coordination with the other Stanford-related actions. On September 29, 2014, the parties stipulated to the remand (to Texas state court (Harris County)) and stay of MacArthur until further order of the court (in accordance with the court’s September 9, 2014 decision in Rishmague (discussed above)), which stipulation was ‘so ordered’ by the court on October 14, 2014. The defendants have not yet responded to the complaint in MacArthur. • Florida suits: On February 14, 2013, five lawsuits were filed against Willis Group Holdings plc, Willis Limited and Willis of Colorado, Inc. in Florida state court (Miami-Dade County) alleging violations of Florida common law. The five suits are: (1) Barbar, et al. v. Willis Group Holdings Public Limited Company, et al. , Case No. 13-05666CA27, filed on behalf of 35 Stanford investors seeking compensatory damages in excess of $30 million ; (2) de Gadala-Maria, et al. v. Willis Group Holdings Public Limited Company, et al. , Case No. 13-05669CA30, filed on behalf of 64 Stanford investors seeking compensatory damages in excess of $83.5 million ; (3) Ranni, et ano. v. Willis Group Holdings Public Limited Company, et al. , Case No. 13-05673CA06, filed on behalf of two Stanford investors seeking compensatory damages in excess of $3 million ; (4) Tisminesky, et al. v. Willis Group Holdings Public Limited Company, et al. , Case No. 13-05676CA09, filed on behalf of 11 Stanford investors seeking compensatory damages in excess of $6.5 million ; and (5) Zacarias, et al. v. Willis Group Holdings Public Limited Company, et al. , Case No. 13-05678CA11, filed on behalf of 10 Stanford investors seeking compensatory damages in excess of $12.5 million . On June 3, 2013, Willis of Colorado, Inc. removed all five cases to the Southern District of Florida and, on June 4, 2013, notified the JPML of the pendency of these related actions. On June 10, 2013, the court in Tisminesky issued an order sua sponte staying and administratively closing that action pending a determination by the JPML as to whether it should be transferred to the Northern District of Texas for consolidation and coordination with the other Stanford-related actions. On June 11, 2013, Willis of Colorado, Inc. moved to stay the other four actions pending the JPML’s transfer decision. On June 20, 2013, the JPML issued a conditional transfer order for the transfer of the five actions to the Northern District of Texas, the transmittal of which was stayed for seven days to allow for any opposition to be filed. On June 28, 2013, with no opposition having been filed, the JPML lifted the stay, enabling the transfer to go forward. On September 30, 2014, the court denied the plaintiffs’ motion to remand in Zacarias , and, on October 3, 2014, the court denied the plaintiffs’ motions to remand in Tisminesky and de Gadala Maria . On December 3, 2014 and March 3, 2015, the court granted the plaintiffs’ motions to remand in Barbar and Ranni , respectively, remanded both actions to Florida state court (Miami-Dade County) and stayed both actions until further order of the court. On January 2, 2015 and April 1, 2015, the plaintiffs in Barbar and Ranni , respectively, appealed the court’s December 3, 2014 and March 3, 2015 decisions to the Fifth Circuit. On April 22, 2015 and July 22, 2015, respectively, the Fifth Circuit dismissed the Barbar and Ranni appeals sua sponte for lack of jurisdiction. We believe the dismissals were in error and that appeals are likely to be reinstated. The defendants have not yet responded to the complaints in Ranni or Barbar . On April 1, 2015, the defendants except Willis Group Holdings plc filed motions to dismiss the complaints in Zacarias , Tisminesky and de Gadala-Maria . On June 19, 2015, Willis Group Holdings plc filed motions to dismiss the complaints in Zacarias , Tisminesky and de Gadala-Maria for lack of personal jurisdiction. On July 15, 2015, the court dismissed the complaint in Zacarias in its entirety with leave to replead within 21 days . On July 21, 2015, the court dismissed the complaints in Tisminesky and de Gadala-Maria in their entirety with leave to replead within 21 days . On August 6, 2015, the plaintiffs in Zacarias , Tisminesky and de Gadala-Maria filed amended complaints (in which, among other things, Willis Group Holdings plc was no longer named as a defendant). On September 11, 2015, the defendants filed motions to dismiss the amended complaints. The motions await disposition by the court. • Janvey, et al. v. Willis of Colorado, Inc., et al. , Case No. 3:13-CV-03980-D, was filed on October 1, 2013 also in the Northern District of Texas against Willis Group Holdings plc, Willis Limited, Willis North America Inc., Willis of Colorado, Inc. and the same Willis associate. The complaint was filed (i) by Ralph S. Janvey, in his capacity as Court-Appointed Receiver for the Stanford Receivership Estate, and the Official Stanford Investors Committee (the ‘OSIC’) against all defendants and (ii) on behalf of a putative, worldwide class of Stanford investors against Willis North America Inc. Plaintiffs Janvey and the OSIC allege claims under Texas common law and the court’s Amended Order Appointing Receiver, and the putative class plaintiffs allege claims under Texas statutory and common law. Plaintiffs seek actual damages in excess of $1 billion , punitive damages and costs. As alleged by the Stanford Receiver, the total amount of collective losses allegedly sustained by all investors in Stanford certificates of deposit is approximately $4.6 billion . On November 15, 2013, plaintiffs in Janvey filed the operative First Amended Complaint, which added certain defendants unaffiliated with Willis. On February 28, 2014, the defendants filed motions to dismiss the First Amended Complaint, which motions, other than with respect to Willis Group Holding plc’s motion to dismiss for lack of personal jurisdiction, were granted in part and denied in part by the court on December 5, 2014. On December 22, 2014, Willis filed a motion to amend the court’s December 5 order to certify an interlocutory appeal to the Fifth Circuit, and, on December 23, 2014, Willis filed a motion to amend and, to the extent necessary, reconsider the court’s December 5 order. On January 16, 2015, the defendants answered the First Amended Complaint. On January 28, 2015, the court denied Willis’s motion to amend the court’s December 5 order to certify an interlocutory appeal to the Fifth Circuit. On February 4, 2015, the court granted Willis’s motion to amend and, to the extent necessary, reconsider the December 5 order. As discussed above, on March 25, 2014, the parties in Troice and Janvey stipulated to the consolidation of the two actions for pre-trial purposes under Rule 42(a) of the Federal Rules of Civil Procedure. On March 28, 2014, the Court ‘so ordered’ that stipulation and, thus, consolidated Troice and Janvey for pre-trial purposes under Rule 42(a). On January 26, 2015, the court entered an order setting a schedule for briefing and discovery regarding the plaintiffs’ motion for class certification, which schedule, among other things, provided for the submission of the plaintiffs’ motion for class certification (following the completion of briefing and discovery) on July 20, 2015. By letter dated March 4, 2015, the parties requested that the court consolidate the scheduling orders entered in Troice and Janvey to provide for a class certification submission date of April 20, 2015 in both cases. On March 6, 2015, the court entered an order consolidating the scheduling orders in Troice and Janvey , providing for a class certification submission date of April 20, 2015 in both cases, and vacating the July 20, 2015 class certification submission date in the original Janvey scheduling order. On November 17, 2015, Willis Group Holdings plc withdrew its motion to dismiss for lack of personal jurisdiction. On March 31, 2016, the parties in the Troice and Janvey actions entered into a settlement in principle that is described in more detail below. The plaintiffs in Janvey and Troice and the other actions above seek overlapping damages, representing either the entirety or a portion of the total alleged collective losses incurred by investors in Stanford certificates of deposit, notwithstanding the fact that Legacy Willis acted as broker of record for only a portion of time that Stanford issued certificates of deposit. In the fourth quarter of 2015, the Company recognized a $70 million litigation provision for loss contingencies relating to the Stanford matters based on its ongoing review of a variety of factors as required by accounting standards. On March 31, 2016, the Company entered into a settlement in principle for $120 million relating to this litigation, and we have therefore increased our provisions by $50 million . Further details on this settlement in principle are given below. The settlement is contingent on a number of conditions, including court approval of the settlement and a bar order prohibiting any continued or future litigation against Willis related to Stanford, which may not be given. Therefore, the ultimate resolution of these matters may differ from the amount provided for. The Company continues to dispute the allegations and, to the extent litigation proceeds, to defend the lawsuits vigorously. Settlement-in-Principle . On March 31, 2016, the Company entered into a settlement in principle, as reflected in a Settlement Term Sheet, relating to the Stanford litigation matter. The Company has agreed to the Settlement Term Sheet to eliminate the distraction, burden, expense and uncertainty of further litigation. |
Supplementary Information for S
Supplementary Information for Select Balance Sheet Accounts | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Supplementary Information for Select Balance Sheet Accounts | Supplementary Information for Select Balance Sheet Accounts There are variances of greater than 10% between our December 31, 2015 and March 31, 2016 Balance Sheets. All variances with the exception of fiduciary assets and liabilities are primarily due to our Merger with Towers Watson. The fair values recorded and their location on our balance sheet is described in Note 3 — Merger, Acquisitions and Divestitures to these financial statements. The increase in fiduciary assets and liabilities as of March 31, 2016 is primarily due to the acquisition of Gras Savoye, timing issues around specific fiduciary receivables and payables as well as a result of the cyclical nature of our business. Additional details of specific accounts are detailed below: Accounts receivable, net consists of the following: March 31, December 31, Billed, net of allowance for doubtful debts of $34 million and $22 million $ 1,640 $ 1,051 Accrued and unbilled, at estimated net realizable value 628 207 Accounts receivable, net $ 2,268 $ 1,258 Prepaid and other current assets consist of the following: March 31, December 31, Prepayments and accrued income $ 142 $ 86 Derivatives and investments 29 29 Deferred compensation plan assets 20 20 Retention incentives 14 14 Corporate income and other taxes 72 66 Other current assets 49 40 Total prepaid other current assets $ 326 $ 255 Other non-current assets consist of the following: March 31, December 31, Prepayments and accrued income $ 28 $ 23 Deferred compensation plan assets 102 102 Deferred tax assets 44 76 Accounts receivable, net 28 30 Other investments 53 42 Other non-current assets 93 25 Total other non-current assets $ 348 $ 298 Other current liabilities consist of the following: March 31, December 31, Accounts payable $ 114 $ 75 Income and other taxes payable 136 45 Contingent and deferred consideration on acquisition 69 68 Payroll related liabilities 219 82 Derivatives 50 31 Third party commissions 180 177 Other current liabilities 204 125 Total other current liabilities $ 972 $ 603 Other non-current liabilities consist of the following: March 31, December 31, Incentives from lessors $ 173 $ 175 Deferred compensation plan liability 102 102 Contingent and deferred consideration on acquisition 151 156 Income taxes payable 57 20 Derivatives 33 27 Other non-current liabilities 89 53 Total other non-current liabilities $ 605 $ 533 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Loss) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Income/(Loss) Changes in accumulated other comprehensive income/(loss), net of non-controlling interests, and net of tax are provided in the following table. The difference between the amounts presented in this table and the amounts presented in the condensed consolidated statements of comprehensive income are the corresponding components attributable to non-controlling interests, which are not material for further disclosure. Amounts related to available-for-sale securities are immaterial. Foreign currency translation (i) Gains and losses on cash flow hedges (i) Defined pension and post-retirement benefit costs (ii) Total As of December 31, 2014 $ (191 ) $ 18 $ (893 ) $ (1,066 ) Other comprehensive income/(loss) before reclassifications (105 ) (11 ) 222 106 Amounts reclassified from accumulated other comprehensive income (net of income tax of $2) — — 8 8 Net current-period other comprehensive income/(loss) (105 ) (11 ) 230 114 As of March 31, 2015 $ (296 ) $ 7 $ (663 ) $ (952 ) As of December 31, 2015 $ (314 ) $ (10 ) $ (713 ) $ (1,037 ) Other comprehensive income/(loss) before reclassifications 4 (19 ) (6 ) (21 ) Amounts reclassified from accumulated other comprehensive income (net of income tax of $3) — (3 ) 8 5 Net current-period other comprehensive income/(loss) 4 (22 ) 2 (16 ) As of March 31, 2016 $ (310 ) $ (32 ) $ (711 ) $ (1,053 ) ________________________ i Reclassification adjustments from accumulated other comprehensive income are included in other expense, net for foreign currency translation and gains and losses on cash flow hedges. See Note 8 — Derivative Financial Instruments for additional details regarding the reclassification adjustments for the hedge settlements. ii Reclassification adjustments from accumulated other comprehensive income are included in the computation of net periodic pension cost (see Note 11 — Retirement Benefits ) which is included in salaries and benefits in the accompanying condensed consolidated statements of operations. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share are calculated by dividing net income attributable to Willis Towers Watson 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. At March 31, 2016 and 2015 , there were 1.5 million and 1.9 million time-based share options; 1.3 million and 1.2 million performance based options; 1.2 million and 1.2 million restricted share units outstanding, respectively. The number of options and share units for 2015 has been retroactively adjusted to reflect the reverse stock split effected on January 4, 2016. See Note 3 — Merger, Acquisitions and Divestitures for further details. Basic and diluted earnings per share are as follows: Three Months Ended 2016 2015 Net income attributable to Willis Towers Watson $ 238 $ 210 Basic average number of shares outstanding (i) 135 68 Dilutive effect of potentially issuable shares (i) 1 1 Diluted average number of shares outstanding (i) 136 69 Basic earnings per share (i) $ 1.76 $ 3.09 Dilutive effect of potentially issuable shares (i) (0.01 ) (0.05 ) Diluted earnings per share (i) $ 1.75 $ 3.04 ____________________________ i. Shares outstanding, potentially issuable shares, basic and diluted earnings per share, and the dilutive effect of potentially issuable shares, for the three months ended March 31, 2015 have been retroactively adjusted to reflect the reverse stock split effected on January 4, 2016. See Note 3 — Merger, Acquisitions and Divestitures for further details. Options to purchase 0.7 million and 0.5 million shares were not included in the computation of the dilutive effect of stock options for the three months ended March 31, 2016 and 2015 , respectively, because the effect was anti-dilutive. The number of options for 2015 has been retroactively adjusted to reflect the reverse stock split on January 4, 2016. See Note 3 — Merger, Acquisitions and Divestitures for further details. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 8, 2016, the Company agreed to settle in principle litigation related to restrictive covenants on certain departures from the Fine Art Jewellery and Specie team in the U.K. during 2015. On April 28, 2016, the party to this matter as part of this agreement paid to the Company, £28 million ( $41 million ) by way of settlement, and £2.75 million ( $4 million ) on account of legal fees incurred. |
Financial Information for Paren
Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries | Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries Willis North America Inc. (‘Willis North America’) had $148 million senior notes outstanding that were issued on July 1, 2005 that were subsequently repaid on July 1, 2015 and has $394 million of senior notes issued on March 28, 2007 and $187 million of senior notes issued on September 29, 2009. All direct obligations under the senior notes are jointly and severally, irrevocably and fully and unconditionally guaranteed by Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, Trinity Acquisition plc (formerly Trinity Acquisition Limited), Willis Group Limited and additionally, effective from March 9, 2016, Willis Towers Watson Sub Holdings Limited and WTW Bermuda Holdings Ltd., collectively the ‘Other Guarantors’, and with Willis Towers Watson, the ‘Guarantor Companies’. The debt securities that were issued by Willis North America and guaranteed by the entities described above, and for which the disclosures set forth below relate and are required under applicable SEC rules, were issued under an effective registration statement. Presented below is condensed consolidating financial information for: (i) Willis Towers Watson, which is a guarantor, on a parent company only basis; (ii) the Other Guarantors, which are all 100 percent directly or indirectly owned subsidiaries of the parent and are all direct or indirect parents of the issuer; (iii) the Issuer, Willis North America; (iv) Other, which are the non-guarantor subsidiaries, on a combined basis; (v) Consolidating adjustments; and (vi) the Consolidated Company. The equity method has been used for investments in subsidiaries in the condensed consolidating balance sheets as of March 31, 2016 of Willis Towers Watson, the Other Guarantors and the Issuer. The entities included in the Other Guarantors column as of March 31, 2016 are Willis Towers Watson Sub Holdings Limited, Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, WTW Bermuda Holdings Ltd., Trinity Acquisition plc (formerly Trinity Acquisition Limited) and Willis Group Limited. Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ — $ 7 $ 2,212 $ — $ 2,219 Interest and other income — — — 15 — 15 Total revenues — — 7 2,227 — 2,234 Costs of providing services Salaries and benefits — — (14 ) (1,182 ) — (1,196 ) Other operating expenses (1 ) (35 ) (58 ) (337 ) — (431 ) Depreciation — (1 ) (4 ) (38 ) — (43 ) Amortization — — — (161 ) — (161 ) Restructuring costs — (4 ) (9 ) (12 ) — (25 ) Integration expenses (1 ) (12 ) (6 ) (33 ) — (52 ) Total costs of providing services (2 ) (52 ) (91 ) (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (52 ) (84 ) 464 — 326 Income from Group undertakings — 121 54 30 (205 ) — Expenses due to Group undertakings — (14 ) (43 ) (148 ) 205 — Interest expense (11 ) (17 ) (10 ) (8 ) — (46 ) Other expense, net (1 ) — — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) 38 (83 ) 321 — 262 Provision for income taxes — 13 28 (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) 51 (55 ) 262 — 244 Interest in earnings of associates, net of tax — — — 1 — 1 Equity account for subsidiaries 252 199 14 — (465 ) — NET INCOME (LOSS) 238 250 (41 ) 263 (465 ) 245 Income attributable to non-controlling interests — — — (7 ) — (7 ) NET INCOME (LOSS) ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ (41 ) $ 256 $ (465 ) $ 238 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ (58 ) $ 241 $ (406 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ (58 ) $ 232 $ (406 ) $ 222 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ — $ 4 $ 1,077 $ — $ 1,081 Interest and other income — — — 6 — 6 Total revenues — — 4 1,083 — 1,087 Costs of providing services Salaries and benefits — — (20 ) (547 ) — (567 ) Other operating expenses (9 ) (14 ) (2 ) (135 ) — (160 ) Depreciation — (1 ) (4 ) (17 ) — (22 ) Amortization — — — (14 ) — (14 ) Restructuring costs — (14 ) (5 ) (12 ) — (31 ) Integration expenses — — — — — — Total costs of providing services (9 ) (29 ) (31 ) (725 ) — (794 ) (Loss) Income from operations (9 ) (29 ) (27 ) 358 — 293 Income from Group undertakings — 54 56 25 (135 ) — Expenses due to Group undertakings — (8 ) (44 ) (83 ) 135 — Interest expense (11 ) (9 ) (11 ) (2 ) — (33 ) Other expense, net (12 ) 6 — (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) 14 (26 ) 297 1 254 Provision for income taxes — 6 8 (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) 20 (18 ) 227 1 198 Interest in earnings of associates, net of tax — 2 — 14 — 16 Equity account for subsidiaries 242 215 66 — (523 ) — NET INCOME 210 237 48 241 (522 ) 214 Income attributable to non-controlling interests — — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 48 $ 237 $ (522 ) $ 210 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 51 $ 370 $ (778 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 51 $ 373 $ (778 ) $ 324 Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ — $ 952 $ — $ 954 Fiduciary assets — — — 12,031 — 12,031 Accounts receivable, net — — 6 2,262 — 2,268 Prepaid and other current assets — 57 22 270 (23 ) 326 Amounts due from group undertakings 7,721 5,644 910 1,765 (16,040 ) — Total current assets 7,723 5,701 938 17,280 (16,063 ) 15,579 Investments in subsidiaries 3,993 8,527 6,002 — (18,522 ) — Fixed assets, net — 27 35 728 — 790 Goodwill — — — 10,477 — 10,477 Other intangible assets, net — — — 5,086 — 5,086 Pension benefits assets — — — 749 — 749 Other non-current assets — 4 54 290 — 348 Non-current amounts due from group undertakings — 918 798 — (1,716 ) — Total non-current assets 3,993 9,476 6,889 17,330 (20,238 ) 17,450 TOTAL ASSETS $ 11,716 $ 15,177 $ 7,827 $ 34,610 $ (36,301 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 21 17 1,070 — 1,109 Short-term debt and current portion of long-term debt — 638 394 112 — 1,144 Other current liabilities 69 46 16 864 (23 ) 972 Amounts due to group undertakings — 8,754 1,717 5,569 (16,040 ) — Total current liabilities 70 9,459 2,144 19,646 (16,063 ) 15,256 Long-term debt 495 1,853 187 232 — 2,767 Liability for pension benefits — — — 1,210 — 1,210 Deferred tax liabilities — 2 — 1,232 — 1,234 Provision for liabilities — — 120 480 — 600 Other non-current liabilities — 25 15 565 — 605 Amounts due to group undertakings — — 518 1,198 (1,716 ) — Total non-current liabilities 495 1,880 840 4,917 (1,716 ) 6,416 TOTAL LIABILITIES 565 11,339 2,984 24,563 (17,779 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 4,843 9,841 (18,522 ) 11,151 Noncontrolling interests — — — 153 — 153 Total equity 11,151 3,838 4,843 9,994 (18,522 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 15,177 $ 7,827 $ 34,610 $ (36,301 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ — $ 527 $ — $ 532 Fiduciary assets — — — 10,458 — 10,458 Accounts receivable, net — — 7 1,251 — 1,258 Prepaid and other current assets 1 49 18 194 (7 ) 255 Amounts due from group undertakings 3,423 1,684 822 1,259 (7,188 ) — Total current assets 3,427 1,735 847 13,689 (7,195 ) 12,503 Investments in subsidiaries — 3,208 832 — (4,040 ) Fixed assets, net — 23 35 505 — 563 Goodwill — — — 3,737 — 3,737 Other intangible assets, net — — — 1,115 — 1,115 Pension benefits assets — — — 623 — 623 Other non-current assets — 8 2 288 — 298 Non-current amounts due from group undertakings — 518 785 — (1,303 ) — Total non-current assets — 3,757 1,654 6,268 (5,343 ) 6,336 TOTAL ASSETS $ 3,427 $ 5,492 $ 2,501 $ 19,957 $ (12,538 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 13 55 683 — 752 Short-term debt and current portion of long-term debt 300 609 — 79 — 988 Other current liabilities 15 38 23 534 (7 ) 603 Amounts due to group undertakings — 4,141 1,545 1,502 (7,188 ) — Total current liabilities 316 4,801 1,623 13,256 (7,195 ) 12,801 Long-term debt 495 1,203 580 — — 2,278 Liability for pension benefits — — — 279 — 279 Deferred tax liabilities — 1 — 239 — 240 Provision for liabilities — — — 295 — 295 Investments in subsidiaries 387 — — — (387 ) — Other non-current liabilities — 21 15 497 — 533 Non-current amounts due to group undertakings — — 518 785 (1,303 ) — Total non-current liabilities 882 1,225 1,113 2,095 (1,690 ) 3,625 TOTAL LIABILITIES 1,198 6,026 2,736 15,351 (8,885 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) (235 ) 4,422 (3,653 ) 2,229 Noncontrolling interests — — — 131 — 131 Total equity 2,229 (534 ) (235 ) 4,553 (3,653 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 5,492 $ 2,501 $ 19,957 $ (12,538 ) $ 18,839 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (47 ) $ (191 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (5 ) (4 ) (39 ) — (48 ) Capitalized software costs — — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — — 469 — 469 Redemptions of held-to-maturity investments — — — 11 — 11 Sales and redemptions of available for sale securities — — — 9 — 9 Other, net — — — (6 ) — (6 ) Proceeds from intercompany investing activities — — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (4,227 ) — (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — — (8,200 ) — Additional investment in subsidiaries — (4,600 ) — (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (5,232 ) $ (4 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — (338 ) — — — (338 ) Senior notes issued — 997 — — — 997 Proceeds from issue of other debt — 400 — — — 400 Repayments of debt (300 ) (406 ) — (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,633 195 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — — 9 — Net cash (used in) from financing activities $ (289 ) $ 5,277 $ 195 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) — 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 — 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (20 ) $ 13 $ (47 ) $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (3 ) (1 ) (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — — (8 ) — (8 ) Other, net — — — 17 — 17 Proceeds from intercompany investing activities 51 — 48 — (99 ) — Repayments of intercompany investing activities — (11 ) — (26 ) 37 — Net cash from (used in) investing activities $ 51 $ (14 ) $ 47 $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — — (1 ) — (1 ) Repayments of debt — (4 ) — — — (4 ) Repurchase of shares (15 ) — — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — — 3 — 38 Dividends paid (54 ) — — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — — (3 ) — (3 ) Proceeds from intercompany financing activities — 26 — 11 (37 ) — Repayments of intercompany financing activities — (23 ) — (76 ) 99 — Net cash used in financing activities $ (34 ) $ (1 ) $ — $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) — (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 — 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ — $ 497 $ — $ 503 Financial Information for Parent Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries On March 17, 2011, the Company issued senior notes totaling $800 million in a registered public offering. On March 15, 2016, $300 million of these senior notes was repaid leaving $500 million outstanding. These debt securities were issued by Willis Towers Watson (‘WTW Debt Securities’) and are guaranteed by certain of the Company’s subsidiaries. Therefore, the Company is providing the condensed consolidating financial information below. The following wholly owned subsidiaries (directly or indirectly) fully and unconditionally guarantee the WTW Debt Securities on a joint and several basis: Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, Trinity Acquisition plc (formerly Trinity Acquisition Limited), Willis Group Limited, Willis North America, and additionally, effective from March 9, 2016, Willis Towers Watson Sub Holdings Limited and WTW Bermuda Holdings Ltd. (the ‘Guarantors’). The guarantor structure described above differs from the guarantor structure associated with the senior notes issued by Willis North America (the ‘Willis North America Debt Securities’) (and for which condensed consolidating financial information is presented in Note 17) in that Willis Towers Watson is the Parent Issuer and Willis North America is a subsidiary guarantor. Presented below is condensed consolidating financial information for: (i) Willis Towers Watson, which is the Parent Issuer; (ii) the Guarantors, which are all 100 percent directly or indirectly owned subsidiaries of the parent; (iii) Other, which are the non-guarantor subsidiaries, on a combined basis; (iv) Consolidating adjustments; and (v) the Consolidated Company. The equity method has been used for investments in subsidiaries in the condensed consolidating balance sheets as of March 31, 2016 of Willis Towers Watson and the Guarantors. The entities included in the Other Guarantors column as of March 31, 2016 are Willis Towers Watson Sub Holdings Limited, Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, WTW Bermuda Holdings Ltd., Trinity Acquisition plc (formerly Trinity Acquisition Limited), Willis Group Limited and Willis North America Inc. Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 7 $ 2,212 $ — $ 2,219 Interest and other income — — 15 — 15 Total revenues — 7 2,227 — 2,234 Costs of providing services Salaries and benefits — (14 ) (1,182 ) — (1,196 ) Other operating expenses (1 ) (93 ) (337 ) — (431 ) Depreciation — (5 ) (38 ) — (43 ) Amortization — — (161 ) — (161 ) Restructuring costs — (13 ) (12 ) — (25 ) Integration expenses (1 ) (18 ) (33 ) — (52 ) Total costs of providing services (2 ) (143 ) (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (136 ) 464 — 326 Income from Group undertakings — 147 30 (177 ) — Expenses due to Group undertakings — (29 ) (148 ) 177 — Interest expense (11 ) (27 ) (8 ) — (46 ) Other expense, net (1 ) — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) (45 ) 321 — 262 Provision for income taxes — 41 (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) (4 ) 262 — 244 Interest in earnings of associates, net of tax — — 1 — 1 Equity account for subsidiaries 252 254 — (506 ) — NET INCOME 238 250 263 (506 ) 245 Income attributable to non-controlling interests — — (7 ) — (7 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ 256 $ (506 ) $ 238 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ 241 $ (464 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ 232 $ (464 ) $ 222 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 4 $ 1,077 $ — $ 1,081 Interest and other income — — 6 — 6 Total revenues — 4 1,083 — 1,087 Costs of providing services Salaries and benefits — (20 ) (547 ) — (567 ) Other operating expenses (9 ) (16 ) (135 ) — (160 ) Depreciation — (5 ) (17 ) — (22 ) Amortization — — (14 ) — (14 ) Restructuring costs — (19 ) (12 ) — (31 ) Integration expenses — — — — — Total costs of providing services (9 ) (60 ) (725 ) — (794 ) (Loss) Income from operations (9 ) (56 ) 358 — 293 Income from Group undertakings — 83 25 (108 ) — Expenses due to Group undertakings — (25 ) (83 ) 108 — Interest expense (11 ) (20 ) (2 ) — (33 ) Other expense, net (12 ) 6 (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) (12 ) 297 1 254 Provision for income taxes — 14 (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) 2 227 1 198 Interest in earnings of associates, net of tax — 2 14 — 16 Equity account for subsidiaries 242 233 — (475 ) — NET INCOME 210 237 241 (474 ) 214 Income attributable to non-controlling interests — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 237 $ (474 ) $ 210 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 370 $ (727 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 373 $ (727 ) $ 324 Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ 952 $ — $ 954 Fiduciary assets — — 12,031 — 12,031 Accounts receivable, net — 6 2,262 — 2,268 Prepaid and other current assets — 79 270 (23 ) 326 Amounts due from group undertakings 7,721 5,294 1,765 (14,780 ) — Total current assets 7,723 5,379 17,280 (14,803 ) 15,579 Investments in subsidiaries 3,993 9,686 — (13,679 ) — Fixed assets, net — 62 728 — 790 Goodwill — — 10,477 — 10,477 Other intangible assets, net — — 5,086 — 5,086 Pension benefits assets — — 749 — 749 Other non-current assets — 58 290 — 348 Non-current amounts due from group undertakings — 1,198 — (1,198 ) — Total non-current assets 3,993 11,004 17,330 (14,877 ) 17,450 TOTAL ASSETS $ 11,716 $ 16,383 $ 34,610 $ (29,680 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 38 1,070 — 1,109 Short-term debt and current portion of long-term debt — 1,032 112 — 1,144 Other current liabilities 69 62 864 (23 ) 972 Amounts due to group undertakings — 9,211 5,569 (14,780 ) — Total current liabilities 70 10,343 19,646 (14,803 ) 15,256 Long-term debt 495 2,040 232 — 2,767 Liability for pension benefits — — 1,210 — 1,210 Deferred tax liabilities — 2 1,232 — 1,234 Provision for liabilities — 120 480 — 600 Other non-current liabilities — 40 565 — 605 Non-current amounts due to group undertakings — — 1,198 (1,198 ) — Total non-current liabilities 495 2,202 4,917 (1,198 ) 6,416 TOTAL LIABILITIES 565 12,545 24,563 (16,001 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 9,841 (13,679 ) 11,151 Noncontrolling interests — — 153 — 153 Total equity 11,151 3,838 9,994 (13,679 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 16,383 $ 34,610 $ (29,680 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ 527 $ — $ 532 Fiduciary assets — — 10,458 — 10,458 Accounts receivable, net — 7 1,251 — 1,258 Prepaid and other current assets 1 67 194 (7 ) 255 Amounts due from group undertakings 3,423 1,257 1,259 (5,939 ) — Total current assets 3,427 1,333 13,689 (5,946 ) 12,503 Investments in subsidiaries — 4,275 — (4,275 ) — Fixed assets, net — 58 505 — 563 Goodwill — — 3,737 — 3,737 Other intangible assets, net — — 1,115 — 1,115 Pension benefits assets — — 623 — 623 Other non-current assets — 10 288 — 298 Non-current amounts due from group undertakings — 785 — (785 ) — Total non-current assets — 5,128 6,268 (5,060 ) 6,336 TOTAL ASSETS $ 3,427 $ 6,461 $ 19,957 $ (11,006 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 68 683 — 752 Short-term debt and current portion of long-term debt 300 609 79 — 988 Other current liabilities 15 61 534 (7 ) 603 Amounts due to group undertakings — 4,437 1,502 (5,939 ) — Total current liabilities 316 5,175 13,256 (5,946 ) 12,801 Investments in subsidiaries 387 — — (387 ) — Long-term debt 495 1,783 — — 2,278 Liability for pension benefits — — 279 — 279 Deferred tax liabilities — 1 239 — 240 Provision for liabilities — — 295 — 295 Other non-current liabilities — 36 497 — 533 Non-current amounts due to group undertakings — — 785 (785 ) — Total non-current liabilities 882 1,820 2,095 (1,172 ) 3,625 TOTAL LIABILITIES 1,198 6,995 15,351 (7,118 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) 4,422 (3,888 ) 2,229 Noncontrolling interests — — 131 — 131 Total equity 2,229 (534 ) 4,553 (3,888 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 6,461 $ 19,957 $ (11,006 ) $ 18,839 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (238 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (9 ) (39 ) — (48 ) Capitalized software costs — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — 469 — 469 Redemptions of held-to-maturity investments — — 11 — 11 Sales and redemptions of available for sale securities — — 9 — 9 Other, net — — (6 ) — (6 ) Proceeds from intercompany investing activities — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (4,227 ) (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — (8,200 ) — Additional investment in subsidiaries — (4,600 ) (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (5,236 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — (338 ) — — (338 ) Senior notes issued — 997 — — 997 Proceeds from issue of other debt — 400 — — 400 Repayments of debt (300 ) (406 ) (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,828 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — 9 — Net cash (used in) from financing activities $ (289 ) $ 5,472 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other Consolidating Consolidated NET CASH USED IN OPERATING ACTIVITIES $ (20 ) $ (34 ) $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (4 ) (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — (8 ) — (8 ) Other, net — — 17 — 17 Proceeds from intercompany investing activities 51 48 — (99 ) — Repayments of intercompany investing activities — (11 ) (26 ) 37 — Net cash from (used in) investing activities $ 51 $ 33 $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — (1 ) — (1 ) Repayments of debt — (4 ) — — (4 ) Repurchase of shares (15 ) — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — 3 — 38 Dividends paid (54 ) — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — (3 ) — (3 ) Proceeds from intercompany financing activities — 26 11 (37 ) — Repayments of intercompany financing activities — (23 ) (76 ) 99 — Net cash used in financing activities $ (34 ) $ (1 ) $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ 497 $ — $ 503 Financial Information for Issuer, Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries Trinity Acquisition plc (formerly Trinity Acquisition Limited) has $1.5 billion senior notes outstanding of which $525 million were issued on August 15, 2013 and $1.0 billion on March 15, 2016. All direct obligations under the senior notes were jointly and severally, irrevocably and fully and unconditionally guaranteed by Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, Willis Group Limited and Willis North America Inc, and additionally, effective from March 9, 2016 , Willis Towers Watson Sub Holdings Limited and WTW Bermuda Holdings Ltd., collectively the ‘Other Guarantors’, and with Willis Towers Watson, the ‘Guarantor Companies’. The guarantor structure described above differs from the guarantor structure associated with the senior notes issued by the Company and Willis North America (the ‘Willis North America Debt Securities’) in that Trinity Acquisition plc (formerly Trinity Acquisition Limited) is the issuer and not a subsidiary guarantor, and Willis North America Inc. is a subsidiary guarantor. Presented below is condensed consolidating financial information for: (i) Willis Towers Watson, which is a guarantor, on a parent company only basis; (ii) the Other Guarantors, which are all wholly owned subsidiaries (directly or indirectly) of the parent. Willis Towers Watson Sub Holdings Limited, Willis Netherlands Holdings B.V, Willis Investment U.K. Holdings Limited, TA I Limited and WTW Bermuda Holdings Ltd. are all direct or indirect parents of the issuer and Willis Group Limited and Willis North America Inc., are direct or indirect wholly owned subsidiaries or the issuer; (iii) Trinity Acquisition plc (formerly Trinity Acquisition Limited), which is the issuer and is a 100 percent indirectly owned subsidiary of the parent; (iv) Other, which are the non-guarantor subsidiaries, on a combined basis; (v) Consolidating adjustments; and (vi) the Consolidated Company. The equity method has been used for investments in subsidiaries in the condensed consolidating balance sheets as of March 31, 2016 of Willis Towers Watson, the Other Guarantors and the Issuer. The entities included in the Other Guarantors column as of March 31, 2016 are Willis Towers Watson Sub Holdings Limited, Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, Willis North America Inc.,TA I Limited, WTW Bermuda Holdings Ltd. and Willis Group Limited. Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 7 $ — $ 2,212 $ — $ 2,219 Interest and other income — — — 15 — 15 Total revenues — 7 — 2,227 — 2,234 Costs of providing services Salaries and benefits — (14 ) — (1,182 ) — (1,196 ) Other operating expenses (1 ) (93 ) — (337 ) — (431 ) Depreciation — (5 ) — (38 ) — (43 ) Amortization — — — (161 ) — (161 ) Restructuring costs — (13 ) — (12 ) — (25 ) Integration expenses (1 ) (18 ) — (33 ) — (52 ) Total costs of providing services (2 ) (143 ) — (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (136 ) — 464 — 326 Income from Group undertakings — 146 31 30 (207 ) — Expenses due to Group undertakings — (52 ) (7 ) (148 ) 207 — Interest expense (11 ) (9 ) (18 ) (8 ) — (46 ) Other expense, net (1 ) — — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) (51 ) 6 321 — 262 Provision for income taxes — 42 (1 ) (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) (9 ) 5 262 — 244 Interest in earnings of associates, net of tax — — — 1 — 1 Equity account for subsidiaries 252 259 174 — (685 ) — NET INCOME 238 250 179 263 (685 ) 245 Income attributable to non-controlling interests — — — (7 ) — (7 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ 179 $ 256 $ (685 ) $ 238 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ 161 $ 241 $ (625 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ 161 $ 232 $ (625 ) $ 222 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 4 $ — $ 1,077 $ — $ 1,081 Interest and other income — — — 6 — 6 Total revenues — 4 — 1,083 — 1,087 Costs of providing services Salaries and benefits — (20 ) — (547 ) — (567 ) Other operating expenses (9 ) (16 ) — (135 ) — (160 ) Depreciation — (5 ) — (17 ) — (22 ) Amortization — — — (14 ) — (14 ) Restructuring costs — (19 ) — (12 ) — (31 ) Integration expenses — — — — — — Total costs of providing services (9 ) (60 ) — (725 ) — (794 ) (Loss) Income from operations (9 ) (56 ) — 358 — 293 Income from Group undertakings — 90 22 25 (137 ) — Expenses due to Group undertakings — (47 ) (7 ) (83 ) 137 — Interest expense (11 ) (11 ) (9 ) (2 ) — (33 ) Other expense, net (12 ) 6 — (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) (18 ) 6 297 1 254 Provision for income taxes — 15 (1 ) (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) (3 ) 5 227 1 198 Interest in earnings of associates, net of tax |
Financial Information for Par25
Financial Information for Parent Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Financial Information for Parent Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries | Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries Willis North America Inc. (‘Willis North America’) had $148 million senior notes outstanding that were issued on July 1, 2005 that were subsequently repaid on July 1, 2015 and has $394 million of senior notes issued on March 28, 2007 and $187 million of senior notes issued on September 29, 2009. All direct obligations under the senior notes are jointly and severally, irrevocably and fully and unconditionally guaranteed by Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, Trinity Acquisition plc (formerly Trinity Acquisition Limited), Willis Group Limited and additionally, effective from March 9, 2016, Willis Towers Watson Sub Holdings Limited and WTW Bermuda Holdings Ltd., collectively the ‘Other Guarantors’, and with Willis Towers Watson, the ‘Guarantor Companies’. The debt securities that were issued by Willis North America and guaranteed by the entities described above, and for which the disclosures set forth below relate and are required under applicable SEC rules, were issued under an effective registration statement. Presented below is condensed consolidating financial information for: (i) Willis Towers Watson, which is a guarantor, on a parent company only basis; (ii) the Other Guarantors, which are all 100 percent directly or indirectly owned subsidiaries of the parent and are all direct or indirect parents of the issuer; (iii) the Issuer, Willis North America; (iv) Other, which are the non-guarantor subsidiaries, on a combined basis; (v) Consolidating adjustments; and (vi) the Consolidated Company. The equity method has been used for investments in subsidiaries in the condensed consolidating balance sheets as of March 31, 2016 of Willis Towers Watson, the Other Guarantors and the Issuer. The entities included in the Other Guarantors column as of March 31, 2016 are Willis Towers Watson Sub Holdings Limited, Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, WTW Bermuda Holdings Ltd., Trinity Acquisition plc (formerly Trinity Acquisition Limited) and Willis Group Limited. Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ — $ 7 $ 2,212 $ — $ 2,219 Interest and other income — — — 15 — 15 Total revenues — — 7 2,227 — 2,234 Costs of providing services Salaries and benefits — — (14 ) (1,182 ) — (1,196 ) Other operating expenses (1 ) (35 ) (58 ) (337 ) — (431 ) Depreciation — (1 ) (4 ) (38 ) — (43 ) Amortization — — — (161 ) — (161 ) Restructuring costs — (4 ) (9 ) (12 ) — (25 ) Integration expenses (1 ) (12 ) (6 ) (33 ) — (52 ) Total costs of providing services (2 ) (52 ) (91 ) (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (52 ) (84 ) 464 — 326 Income from Group undertakings — 121 54 30 (205 ) — Expenses due to Group undertakings — (14 ) (43 ) (148 ) 205 — Interest expense (11 ) (17 ) (10 ) (8 ) — (46 ) Other expense, net (1 ) — — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) 38 (83 ) 321 — 262 Provision for income taxes — 13 28 (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) 51 (55 ) 262 — 244 Interest in earnings of associates, net of tax — — — 1 — 1 Equity account for subsidiaries 252 199 14 — (465 ) — NET INCOME (LOSS) 238 250 (41 ) 263 (465 ) 245 Income attributable to non-controlling interests — — — (7 ) — (7 ) NET INCOME (LOSS) ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ (41 ) $ 256 $ (465 ) $ 238 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ (58 ) $ 241 $ (406 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ (58 ) $ 232 $ (406 ) $ 222 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ — $ 4 $ 1,077 $ — $ 1,081 Interest and other income — — — 6 — 6 Total revenues — — 4 1,083 — 1,087 Costs of providing services Salaries and benefits — — (20 ) (547 ) — (567 ) Other operating expenses (9 ) (14 ) (2 ) (135 ) — (160 ) Depreciation — (1 ) (4 ) (17 ) — (22 ) Amortization — — — (14 ) — (14 ) Restructuring costs — (14 ) (5 ) (12 ) — (31 ) Integration expenses — — — — — — Total costs of providing services (9 ) (29 ) (31 ) (725 ) — (794 ) (Loss) Income from operations (9 ) (29 ) (27 ) 358 — 293 Income from Group undertakings — 54 56 25 (135 ) — Expenses due to Group undertakings — (8 ) (44 ) (83 ) 135 — Interest expense (11 ) (9 ) (11 ) (2 ) — (33 ) Other expense, net (12 ) 6 — (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) 14 (26 ) 297 1 254 Provision for income taxes — 6 8 (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) 20 (18 ) 227 1 198 Interest in earnings of associates, net of tax — 2 — 14 — 16 Equity account for subsidiaries 242 215 66 — (523 ) — NET INCOME 210 237 48 241 (522 ) 214 Income attributable to non-controlling interests — — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 48 $ 237 $ (522 ) $ 210 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 51 $ 370 $ (778 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 51 $ 373 $ (778 ) $ 324 Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ — $ 952 $ — $ 954 Fiduciary assets — — — 12,031 — 12,031 Accounts receivable, net — — 6 2,262 — 2,268 Prepaid and other current assets — 57 22 270 (23 ) 326 Amounts due from group undertakings 7,721 5,644 910 1,765 (16,040 ) — Total current assets 7,723 5,701 938 17,280 (16,063 ) 15,579 Investments in subsidiaries 3,993 8,527 6,002 — (18,522 ) — Fixed assets, net — 27 35 728 — 790 Goodwill — — — 10,477 — 10,477 Other intangible assets, net — — — 5,086 — 5,086 Pension benefits assets — — — 749 — 749 Other non-current assets — 4 54 290 — 348 Non-current amounts due from group undertakings — 918 798 — (1,716 ) — Total non-current assets 3,993 9,476 6,889 17,330 (20,238 ) 17,450 TOTAL ASSETS $ 11,716 $ 15,177 $ 7,827 $ 34,610 $ (36,301 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 21 17 1,070 — 1,109 Short-term debt and current portion of long-term debt — 638 394 112 — 1,144 Other current liabilities 69 46 16 864 (23 ) 972 Amounts due to group undertakings — 8,754 1,717 5,569 (16,040 ) — Total current liabilities 70 9,459 2,144 19,646 (16,063 ) 15,256 Long-term debt 495 1,853 187 232 — 2,767 Liability for pension benefits — — — 1,210 — 1,210 Deferred tax liabilities — 2 — 1,232 — 1,234 Provision for liabilities — — 120 480 — 600 Other non-current liabilities — 25 15 565 — 605 Amounts due to group undertakings — — 518 1,198 (1,716 ) — Total non-current liabilities 495 1,880 840 4,917 (1,716 ) 6,416 TOTAL LIABILITIES 565 11,339 2,984 24,563 (17,779 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 4,843 9,841 (18,522 ) 11,151 Noncontrolling interests — — — 153 — 153 Total equity 11,151 3,838 4,843 9,994 (18,522 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 15,177 $ 7,827 $ 34,610 $ (36,301 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ — $ 527 $ — $ 532 Fiduciary assets — — — 10,458 — 10,458 Accounts receivable, net — — 7 1,251 — 1,258 Prepaid and other current assets 1 49 18 194 (7 ) 255 Amounts due from group undertakings 3,423 1,684 822 1,259 (7,188 ) — Total current assets 3,427 1,735 847 13,689 (7,195 ) 12,503 Investments in subsidiaries — 3,208 832 — (4,040 ) Fixed assets, net — 23 35 505 — 563 Goodwill — — — 3,737 — 3,737 Other intangible assets, net — — — 1,115 — 1,115 Pension benefits assets — — — 623 — 623 Other non-current assets — 8 2 288 — 298 Non-current amounts due from group undertakings — 518 785 — (1,303 ) — Total non-current assets — 3,757 1,654 6,268 (5,343 ) 6,336 TOTAL ASSETS $ 3,427 $ 5,492 $ 2,501 $ 19,957 $ (12,538 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 13 55 683 — 752 Short-term debt and current portion of long-term debt 300 609 — 79 — 988 Other current liabilities 15 38 23 534 (7 ) 603 Amounts due to group undertakings — 4,141 1,545 1,502 (7,188 ) — Total current liabilities 316 4,801 1,623 13,256 (7,195 ) 12,801 Long-term debt 495 1,203 580 — — 2,278 Liability for pension benefits — — — 279 — 279 Deferred tax liabilities — 1 — 239 — 240 Provision for liabilities — — — 295 — 295 Investments in subsidiaries 387 — — — (387 ) — Other non-current liabilities — 21 15 497 — 533 Non-current amounts due to group undertakings — — 518 785 (1,303 ) — Total non-current liabilities 882 1,225 1,113 2,095 (1,690 ) 3,625 TOTAL LIABILITIES 1,198 6,026 2,736 15,351 (8,885 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) (235 ) 4,422 (3,653 ) 2,229 Noncontrolling interests — — — 131 — 131 Total equity 2,229 (534 ) (235 ) 4,553 (3,653 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 5,492 $ 2,501 $ 19,957 $ (12,538 ) $ 18,839 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (47 ) $ (191 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (5 ) (4 ) (39 ) — (48 ) Capitalized software costs — — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — — 469 — 469 Redemptions of held-to-maturity investments — — — 11 — 11 Sales and redemptions of available for sale securities — — — 9 — 9 Other, net — — — (6 ) — (6 ) Proceeds from intercompany investing activities — — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (4,227 ) — (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — — (8,200 ) — Additional investment in subsidiaries — (4,600 ) — (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (5,232 ) $ (4 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — (338 ) — — — (338 ) Senior notes issued — 997 — — — 997 Proceeds from issue of other debt — 400 — — — 400 Repayments of debt (300 ) (406 ) — (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,633 195 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — — 9 — Net cash (used in) from financing activities $ (289 ) $ 5,277 $ 195 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) — 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 — 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (20 ) $ 13 $ (47 ) $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (3 ) (1 ) (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — — (8 ) — (8 ) Other, net — — — 17 — 17 Proceeds from intercompany investing activities 51 — 48 — (99 ) — Repayments of intercompany investing activities — (11 ) — (26 ) 37 — Net cash from (used in) investing activities $ 51 $ (14 ) $ 47 $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — — (1 ) — (1 ) Repayments of debt — (4 ) — — — (4 ) Repurchase of shares (15 ) — — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — — 3 — 38 Dividends paid (54 ) — — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — — (3 ) — (3 ) Proceeds from intercompany financing activities — 26 — 11 (37 ) — Repayments of intercompany financing activities — (23 ) — (76 ) 99 — Net cash used in financing activities $ (34 ) $ (1 ) $ — $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) — (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 — 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ — $ 497 $ — $ 503 Financial Information for Parent Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries On March 17, 2011, the Company issued senior notes totaling $800 million in a registered public offering. On March 15, 2016, $300 million of these senior notes was repaid leaving $500 million outstanding. These debt securities were issued by Willis Towers Watson (‘WTW Debt Securities’) and are guaranteed by certain of the Company’s subsidiaries. Therefore, the Company is providing the condensed consolidating financial information below. The following wholly owned subsidiaries (directly or indirectly) fully and unconditionally guarantee the WTW Debt Securities on a joint and several basis: Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, Trinity Acquisition plc (formerly Trinity Acquisition Limited), Willis Group Limited, Willis North America, and additionally, effective from March 9, 2016, Willis Towers Watson Sub Holdings Limited and WTW Bermuda Holdings Ltd. (the ‘Guarantors’). The guarantor structure described above differs from the guarantor structure associated with the senior notes issued by Willis North America (the ‘Willis North America Debt Securities’) (and for which condensed consolidating financial information is presented in Note 17) in that Willis Towers Watson is the Parent Issuer and Willis North America is a subsidiary guarantor. Presented below is condensed consolidating financial information for: (i) Willis Towers Watson, which is the Parent Issuer; (ii) the Guarantors, which are all 100 percent directly or indirectly owned subsidiaries of the parent; (iii) Other, which are the non-guarantor subsidiaries, on a combined basis; (iv) Consolidating adjustments; and (v) the Consolidated Company. The equity method has been used for investments in subsidiaries in the condensed consolidating balance sheets as of March 31, 2016 of Willis Towers Watson and the Guarantors. The entities included in the Other Guarantors column as of March 31, 2016 are Willis Towers Watson Sub Holdings Limited, Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, WTW Bermuda Holdings Ltd., Trinity Acquisition plc (formerly Trinity Acquisition Limited), Willis Group Limited and Willis North America Inc. Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 7 $ 2,212 $ — $ 2,219 Interest and other income — — 15 — 15 Total revenues — 7 2,227 — 2,234 Costs of providing services Salaries and benefits — (14 ) (1,182 ) — (1,196 ) Other operating expenses (1 ) (93 ) (337 ) — (431 ) Depreciation — (5 ) (38 ) — (43 ) Amortization — — (161 ) — (161 ) Restructuring costs — (13 ) (12 ) — (25 ) Integration expenses (1 ) (18 ) (33 ) — (52 ) Total costs of providing services (2 ) (143 ) (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (136 ) 464 — 326 Income from Group undertakings — 147 30 (177 ) — Expenses due to Group undertakings — (29 ) (148 ) 177 — Interest expense (11 ) (27 ) (8 ) — (46 ) Other expense, net (1 ) — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) (45 ) 321 — 262 Provision for income taxes — 41 (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) (4 ) 262 — 244 Interest in earnings of associates, net of tax — — 1 — 1 Equity account for subsidiaries 252 254 — (506 ) — NET INCOME 238 250 263 (506 ) 245 Income attributable to non-controlling interests — — (7 ) — (7 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ 256 $ (506 ) $ 238 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ 241 $ (464 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ 232 $ (464 ) $ 222 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 4 $ 1,077 $ — $ 1,081 Interest and other income — — 6 — 6 Total revenues — 4 1,083 — 1,087 Costs of providing services Salaries and benefits — (20 ) (547 ) — (567 ) Other operating expenses (9 ) (16 ) (135 ) — (160 ) Depreciation — (5 ) (17 ) — (22 ) Amortization — — (14 ) — (14 ) Restructuring costs — (19 ) (12 ) — (31 ) Integration expenses — — — — — Total costs of providing services (9 ) (60 ) (725 ) — (794 ) (Loss) Income from operations (9 ) (56 ) 358 — 293 Income from Group undertakings — 83 25 (108 ) — Expenses due to Group undertakings — (25 ) (83 ) 108 — Interest expense (11 ) (20 ) (2 ) — (33 ) Other expense, net (12 ) 6 (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) (12 ) 297 1 254 Provision for income taxes — 14 (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) 2 227 1 198 Interest in earnings of associates, net of tax — 2 14 — 16 Equity account for subsidiaries 242 233 — (475 ) — NET INCOME 210 237 241 (474 ) 214 Income attributable to non-controlling interests — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 237 $ (474 ) $ 210 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 370 $ (727 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 373 $ (727 ) $ 324 Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ 952 $ — $ 954 Fiduciary assets — — 12,031 — 12,031 Accounts receivable, net — 6 2,262 — 2,268 Prepaid and other current assets — 79 270 (23 ) 326 Amounts due from group undertakings 7,721 5,294 1,765 (14,780 ) — Total current assets 7,723 5,379 17,280 (14,803 ) 15,579 Investments in subsidiaries 3,993 9,686 — (13,679 ) — Fixed assets, net — 62 728 — 790 Goodwill — — 10,477 — 10,477 Other intangible assets, net — — 5,086 — 5,086 Pension benefits assets — — 749 — 749 Other non-current assets — 58 290 — 348 Non-current amounts due from group undertakings — 1,198 — (1,198 ) — Total non-current assets 3,993 11,004 17,330 (14,877 ) 17,450 TOTAL ASSETS $ 11,716 $ 16,383 $ 34,610 $ (29,680 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 38 1,070 — 1,109 Short-term debt and current portion of long-term debt — 1,032 112 — 1,144 Other current liabilities 69 62 864 (23 ) 972 Amounts due to group undertakings — 9,211 5,569 (14,780 ) — Total current liabilities 70 10,343 19,646 (14,803 ) 15,256 Long-term debt 495 2,040 232 — 2,767 Liability for pension benefits — — 1,210 — 1,210 Deferred tax liabilities — 2 1,232 — 1,234 Provision for liabilities — 120 480 — 600 Other non-current liabilities — 40 565 — 605 Non-current amounts due to group undertakings — — 1,198 (1,198 ) — Total non-current liabilities 495 2,202 4,917 (1,198 ) 6,416 TOTAL LIABILITIES 565 12,545 24,563 (16,001 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 9,841 (13,679 ) 11,151 Noncontrolling interests — — 153 — 153 Total equity 11,151 3,838 9,994 (13,679 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 16,383 $ 34,610 $ (29,680 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ 527 $ — $ 532 Fiduciary assets — — 10,458 — 10,458 Accounts receivable, net — 7 1,251 — 1,258 Prepaid and other current assets 1 67 194 (7 ) 255 Amounts due from group undertakings 3,423 1,257 1,259 (5,939 ) — Total current assets 3,427 1,333 13,689 (5,946 ) 12,503 Investments in subsidiaries — 4,275 — (4,275 ) — Fixed assets, net — 58 505 — 563 Goodwill — — 3,737 — 3,737 Other intangible assets, net — — 1,115 — 1,115 Pension benefits assets — — 623 — 623 Other non-current assets — 10 288 — 298 Non-current amounts due from group undertakings — 785 — (785 ) — Total non-current assets — 5,128 6,268 (5,060 ) 6,336 TOTAL ASSETS $ 3,427 $ 6,461 $ 19,957 $ (11,006 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 68 683 — 752 Short-term debt and current portion of long-term debt 300 609 79 — 988 Other current liabilities 15 61 534 (7 ) 603 Amounts due to group undertakings — 4,437 1,502 (5,939 ) — Total current liabilities 316 5,175 13,256 (5,946 ) 12,801 Investments in subsidiaries 387 — — (387 ) — Long-term debt 495 1,783 — — 2,278 Liability for pension benefits — — 279 — 279 Deferred tax liabilities — 1 239 — 240 Provision for liabilities — — 295 — 295 Other non-current liabilities — 36 497 — 533 Non-current amounts due to group undertakings — — 785 (785 ) — Total non-current liabilities 882 1,820 2,095 (1,172 ) 3,625 TOTAL LIABILITIES 1,198 6,995 15,351 (7,118 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) 4,422 (3,888 ) 2,229 Noncontrolling interests — — 131 — 131 Total equity 2,229 (534 ) 4,553 (3,888 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 6,461 $ 19,957 $ (11,006 ) $ 18,839 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (238 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (9 ) (39 ) — (48 ) Capitalized software costs — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — 469 — 469 Redemptions of held-to-maturity investments — — 11 — 11 Sales and redemptions of available for sale securities — — 9 — 9 Other, net — — (6 ) — (6 ) Proceeds from intercompany investing activities — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (4,227 ) (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — (8,200 ) — Additional investment in subsidiaries — (4,600 ) (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (5,236 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — (338 ) — — (338 ) Senior notes issued — 997 — — 997 Proceeds from issue of other debt — 400 — — 400 Repayments of debt (300 ) (406 ) (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,828 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — 9 — Net cash (used in) from financing activities $ (289 ) $ 5,472 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other Consolidating Consolidated NET CASH USED IN OPERATING ACTIVITIES $ (20 ) $ (34 ) $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (4 ) (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — (8 ) — (8 ) Other, net — — 17 — 17 Proceeds from intercompany investing activities 51 48 — (99 ) — Repayments of intercompany investing activities — (11 ) (26 ) 37 — Net cash from (used in) investing activities $ 51 $ 33 $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — (1 ) — (1 ) Repayments of debt — (4 ) — — (4 ) Repurchase of shares (15 ) — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — 3 — 38 Dividends paid (54 ) — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — (3 ) — (3 ) Proceeds from intercompany financing activities — 26 11 (37 ) — Repayments of intercompany financing activities — (23 ) (76 ) 99 — Net cash used in financing activities $ (34 ) $ (1 ) $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ 497 $ — $ 503 Financial Information for Issuer, Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries Trinity Acquisition plc (formerly Trinity Acquisition Limited) has $1.5 billion senior notes outstanding of which $525 million were issued on August 15, 2013 and $1.0 billion on March 15, 2016. All direct obligations under the senior notes were jointly and severally, irrevocably and fully and unconditionally guaranteed by Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, Willis Group Limited and Willis North America Inc, and additionally, effective from March 9, 2016 , Willis Towers Watson Sub Holdings Limited and WTW Bermuda Holdings Ltd., collectively the ‘Other Guarantors’, and with Willis Towers Watson, the ‘Guarantor Companies’. The guarantor structure described above differs from the guarantor structure associated with the senior notes issued by the Company and Willis North America (the ‘Willis North America Debt Securities’) in that Trinity Acquisition plc (formerly Trinity Acquisition Limited) is the issuer and not a subsidiary guarantor, and Willis North America Inc. is a subsidiary guarantor. Presented below is condensed consolidating financial information for: (i) Willis Towers Watson, which is a guarantor, on a parent company only basis; (ii) the Other Guarantors, which are all wholly owned subsidiaries (directly or indirectly) of the parent. Willis Towers Watson Sub Holdings Limited, Willis Netherlands Holdings B.V, Willis Investment U.K. Holdings Limited, TA I Limited and WTW Bermuda Holdings Ltd. are all direct or indirect parents of the issuer and Willis Group Limited and Willis North America Inc., are direct or indirect wholly owned subsidiaries or the issuer; (iii) Trinity Acquisition plc (formerly Trinity Acquisition Limited), which is the issuer and is a 100 percent indirectly owned subsidiary of the parent; (iv) Other, which are the non-guarantor subsidiaries, on a combined basis; (v) Consolidating adjustments; and (vi) the Consolidated Company. The equity method has been used for investments in subsidiaries in the condensed consolidating balance sheets as of March 31, 2016 of Willis Towers Watson, the Other Guarantors and the Issuer. The entities included in the Other Guarantors column as of March 31, 2016 are Willis Towers Watson Sub Holdings Limited, Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, Willis North America Inc.,TA I Limited, WTW Bermuda Holdings Ltd. and Willis Group Limited. Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 7 $ — $ 2,212 $ — $ 2,219 Interest and other income — — — 15 — 15 Total revenues — 7 — 2,227 — 2,234 Costs of providing services Salaries and benefits — (14 ) — (1,182 ) — (1,196 ) Other operating expenses (1 ) (93 ) — (337 ) — (431 ) Depreciation — (5 ) — (38 ) — (43 ) Amortization — — — (161 ) — (161 ) Restructuring costs — (13 ) — (12 ) — (25 ) Integration expenses (1 ) (18 ) — (33 ) — (52 ) Total costs of providing services (2 ) (143 ) — (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (136 ) — 464 — 326 Income from Group undertakings — 146 31 30 (207 ) — Expenses due to Group undertakings — (52 ) (7 ) (148 ) 207 — Interest expense (11 ) (9 ) (18 ) (8 ) — (46 ) Other expense, net (1 ) — — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) (51 ) 6 321 — 262 Provision for income taxes — 42 (1 ) (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) (9 ) 5 262 — 244 Interest in earnings of associates, net of tax — — — 1 — 1 Equity account for subsidiaries 252 259 174 — (685 ) — NET INCOME 238 250 179 263 (685 ) 245 Income attributable to non-controlling interests — — — (7 ) — (7 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ 179 $ 256 $ (685 ) $ 238 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ 161 $ 241 $ (625 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ 161 $ 232 $ (625 ) $ 222 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 4 $ — $ 1,077 $ — $ 1,081 Interest and other income — — — 6 — 6 Total revenues — 4 — 1,083 — 1,087 Costs of providing services Salaries and benefits — (20 ) — (547 ) — (567 ) Other operating expenses (9 ) (16 ) — (135 ) — (160 ) Depreciation — (5 ) — (17 ) — (22 ) Amortization — — — (14 ) — (14 ) Restructuring costs — (19 ) — (12 ) — (31 ) Integration expenses — — — — — — Total costs of providing services (9 ) (60 ) — (725 ) — (794 ) (Loss) Income from operations (9 ) (56 ) — 358 — 293 Income from Group undertakings — 90 22 25 (137 ) — Expenses due to Group undertakings — (47 ) (7 ) (83 ) 137 — Interest expense (11 ) (11 ) (9 ) (2 ) — (33 ) Other expense, net (12 ) 6 — (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) (18 ) 6 297 1 254 Provision for income taxes — 15 (1 ) (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) (3 ) 5 227 1 198 Interest in earnings of associates, net of tax |
Financial Information for Issue
Financial Information for Issuer, Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Financial Information for Issuer, Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries | Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries Willis North America Inc. (‘Willis North America’) had $148 million senior notes outstanding that were issued on July 1, 2005 that were subsequently repaid on July 1, 2015 and has $394 million of senior notes issued on March 28, 2007 and $187 million of senior notes issued on September 29, 2009. All direct obligations under the senior notes are jointly and severally, irrevocably and fully and unconditionally guaranteed by Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, Trinity Acquisition plc (formerly Trinity Acquisition Limited), Willis Group Limited and additionally, effective from March 9, 2016, Willis Towers Watson Sub Holdings Limited and WTW Bermuda Holdings Ltd., collectively the ‘Other Guarantors’, and with Willis Towers Watson, the ‘Guarantor Companies’. The debt securities that were issued by Willis North America and guaranteed by the entities described above, and for which the disclosures set forth below relate and are required under applicable SEC rules, were issued under an effective registration statement. Presented below is condensed consolidating financial information for: (i) Willis Towers Watson, which is a guarantor, on a parent company only basis; (ii) the Other Guarantors, which are all 100 percent directly or indirectly owned subsidiaries of the parent and are all direct or indirect parents of the issuer; (iii) the Issuer, Willis North America; (iv) Other, which are the non-guarantor subsidiaries, on a combined basis; (v) Consolidating adjustments; and (vi) the Consolidated Company. The equity method has been used for investments in subsidiaries in the condensed consolidating balance sheets as of March 31, 2016 of Willis Towers Watson, the Other Guarantors and the Issuer. The entities included in the Other Guarantors column as of March 31, 2016 are Willis Towers Watson Sub Holdings Limited, Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, WTW Bermuda Holdings Ltd., Trinity Acquisition plc (formerly Trinity Acquisition Limited) and Willis Group Limited. Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ — $ 7 $ 2,212 $ — $ 2,219 Interest and other income — — — 15 — 15 Total revenues — — 7 2,227 — 2,234 Costs of providing services Salaries and benefits — — (14 ) (1,182 ) — (1,196 ) Other operating expenses (1 ) (35 ) (58 ) (337 ) — (431 ) Depreciation — (1 ) (4 ) (38 ) — (43 ) Amortization — — — (161 ) — (161 ) Restructuring costs — (4 ) (9 ) (12 ) — (25 ) Integration expenses (1 ) (12 ) (6 ) (33 ) — (52 ) Total costs of providing services (2 ) (52 ) (91 ) (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (52 ) (84 ) 464 — 326 Income from Group undertakings — 121 54 30 (205 ) — Expenses due to Group undertakings — (14 ) (43 ) (148 ) 205 — Interest expense (11 ) (17 ) (10 ) (8 ) — (46 ) Other expense, net (1 ) — — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) 38 (83 ) 321 — 262 Provision for income taxes — 13 28 (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) 51 (55 ) 262 — 244 Interest in earnings of associates, net of tax — — — 1 — 1 Equity account for subsidiaries 252 199 14 — (465 ) — NET INCOME (LOSS) 238 250 (41 ) 263 (465 ) 245 Income attributable to non-controlling interests — — — (7 ) — (7 ) NET INCOME (LOSS) ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ (41 ) $ 256 $ (465 ) $ 238 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ (58 ) $ 241 $ (406 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ (58 ) $ 232 $ (406 ) $ 222 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ — $ 4 $ 1,077 $ — $ 1,081 Interest and other income — — — 6 — 6 Total revenues — — 4 1,083 — 1,087 Costs of providing services Salaries and benefits — — (20 ) (547 ) — (567 ) Other operating expenses (9 ) (14 ) (2 ) (135 ) — (160 ) Depreciation — (1 ) (4 ) (17 ) — (22 ) Amortization — — — (14 ) — (14 ) Restructuring costs — (14 ) (5 ) (12 ) — (31 ) Integration expenses — — — — — — Total costs of providing services (9 ) (29 ) (31 ) (725 ) — (794 ) (Loss) Income from operations (9 ) (29 ) (27 ) 358 — 293 Income from Group undertakings — 54 56 25 (135 ) — Expenses due to Group undertakings — (8 ) (44 ) (83 ) 135 — Interest expense (11 ) (9 ) (11 ) (2 ) — (33 ) Other expense, net (12 ) 6 — (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) 14 (26 ) 297 1 254 Provision for income taxes — 6 8 (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) 20 (18 ) 227 1 198 Interest in earnings of associates, net of tax — 2 — 14 — 16 Equity account for subsidiaries 242 215 66 — (523 ) — NET INCOME 210 237 48 241 (522 ) 214 Income attributable to non-controlling interests — — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 48 $ 237 $ (522 ) $ 210 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 51 $ 370 $ (778 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 51 $ 373 $ (778 ) $ 324 Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ — $ 952 $ — $ 954 Fiduciary assets — — — 12,031 — 12,031 Accounts receivable, net — — 6 2,262 — 2,268 Prepaid and other current assets — 57 22 270 (23 ) 326 Amounts due from group undertakings 7,721 5,644 910 1,765 (16,040 ) — Total current assets 7,723 5,701 938 17,280 (16,063 ) 15,579 Investments in subsidiaries 3,993 8,527 6,002 — (18,522 ) — Fixed assets, net — 27 35 728 — 790 Goodwill — — — 10,477 — 10,477 Other intangible assets, net — — — 5,086 — 5,086 Pension benefits assets — — — 749 — 749 Other non-current assets — 4 54 290 — 348 Non-current amounts due from group undertakings — 918 798 — (1,716 ) — Total non-current assets 3,993 9,476 6,889 17,330 (20,238 ) 17,450 TOTAL ASSETS $ 11,716 $ 15,177 $ 7,827 $ 34,610 $ (36,301 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 21 17 1,070 — 1,109 Short-term debt and current portion of long-term debt — 638 394 112 — 1,144 Other current liabilities 69 46 16 864 (23 ) 972 Amounts due to group undertakings — 8,754 1,717 5,569 (16,040 ) — Total current liabilities 70 9,459 2,144 19,646 (16,063 ) 15,256 Long-term debt 495 1,853 187 232 — 2,767 Liability for pension benefits — — — 1,210 — 1,210 Deferred tax liabilities — 2 — 1,232 — 1,234 Provision for liabilities — — 120 480 — 600 Other non-current liabilities — 25 15 565 — 605 Amounts due to group undertakings — — 518 1,198 (1,716 ) — Total non-current liabilities 495 1,880 840 4,917 (1,716 ) 6,416 TOTAL LIABILITIES 565 11,339 2,984 24,563 (17,779 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 4,843 9,841 (18,522 ) 11,151 Noncontrolling interests — — — 153 — 153 Total equity 11,151 3,838 4,843 9,994 (18,522 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 15,177 $ 7,827 $ 34,610 $ (36,301 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ — $ 527 $ — $ 532 Fiduciary assets — — — 10,458 — 10,458 Accounts receivable, net — — 7 1,251 — 1,258 Prepaid and other current assets 1 49 18 194 (7 ) 255 Amounts due from group undertakings 3,423 1,684 822 1,259 (7,188 ) — Total current assets 3,427 1,735 847 13,689 (7,195 ) 12,503 Investments in subsidiaries — 3,208 832 — (4,040 ) Fixed assets, net — 23 35 505 — 563 Goodwill — — — 3,737 — 3,737 Other intangible assets, net — — — 1,115 — 1,115 Pension benefits assets — — — 623 — 623 Other non-current assets — 8 2 288 — 298 Non-current amounts due from group undertakings — 518 785 — (1,303 ) — Total non-current assets — 3,757 1,654 6,268 (5,343 ) 6,336 TOTAL ASSETS $ 3,427 $ 5,492 $ 2,501 $ 19,957 $ (12,538 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 13 55 683 — 752 Short-term debt and current portion of long-term debt 300 609 — 79 — 988 Other current liabilities 15 38 23 534 (7 ) 603 Amounts due to group undertakings — 4,141 1,545 1,502 (7,188 ) — Total current liabilities 316 4,801 1,623 13,256 (7,195 ) 12,801 Long-term debt 495 1,203 580 — — 2,278 Liability for pension benefits — — — 279 — 279 Deferred tax liabilities — 1 — 239 — 240 Provision for liabilities — — — 295 — 295 Investments in subsidiaries 387 — — — (387 ) — Other non-current liabilities — 21 15 497 — 533 Non-current amounts due to group undertakings — — 518 785 (1,303 ) — Total non-current liabilities 882 1,225 1,113 2,095 (1,690 ) 3,625 TOTAL LIABILITIES 1,198 6,026 2,736 15,351 (8,885 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) (235 ) 4,422 (3,653 ) 2,229 Noncontrolling interests — — — 131 — 131 Total equity 2,229 (534 ) (235 ) 4,553 (3,653 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 5,492 $ 2,501 $ 19,957 $ (12,538 ) $ 18,839 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (47 ) $ (191 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (5 ) (4 ) (39 ) — (48 ) Capitalized software costs — — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — — 469 — 469 Redemptions of held-to-maturity investments — — — 11 — 11 Sales and redemptions of available for sale securities — — — 9 — 9 Other, net — — — (6 ) — (6 ) Proceeds from intercompany investing activities — — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (4,227 ) — (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — — (8,200 ) — Additional investment in subsidiaries — (4,600 ) — (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (5,232 ) $ (4 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — (338 ) — — — (338 ) Senior notes issued — 997 — — — 997 Proceeds from issue of other debt — 400 — — — 400 Repayments of debt (300 ) (406 ) — (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,633 195 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — — 9 — Net cash (used in) from financing activities $ (289 ) $ 5,277 $ 195 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) — 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 — 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (20 ) $ 13 $ (47 ) $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (3 ) (1 ) (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — — (8 ) — (8 ) Other, net — — — 17 — 17 Proceeds from intercompany investing activities 51 — 48 — (99 ) — Repayments of intercompany investing activities — (11 ) — (26 ) 37 — Net cash from (used in) investing activities $ 51 $ (14 ) $ 47 $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — — (1 ) — (1 ) Repayments of debt — (4 ) — — — (4 ) Repurchase of shares (15 ) — — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — — 3 — 38 Dividends paid (54 ) — — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — — (3 ) — (3 ) Proceeds from intercompany financing activities — 26 — 11 (37 ) — Repayments of intercompany financing activities — (23 ) — (76 ) 99 — Net cash used in financing activities $ (34 ) $ (1 ) $ — $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) — (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 — 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ — $ 497 $ — $ 503 Financial Information for Parent Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries On March 17, 2011, the Company issued senior notes totaling $800 million in a registered public offering. On March 15, 2016, $300 million of these senior notes was repaid leaving $500 million outstanding. These debt securities were issued by Willis Towers Watson (‘WTW Debt Securities’) and are guaranteed by certain of the Company’s subsidiaries. Therefore, the Company is providing the condensed consolidating financial information below. The following wholly owned subsidiaries (directly or indirectly) fully and unconditionally guarantee the WTW Debt Securities on a joint and several basis: Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, Trinity Acquisition plc (formerly Trinity Acquisition Limited), Willis Group Limited, Willis North America, and additionally, effective from March 9, 2016, Willis Towers Watson Sub Holdings Limited and WTW Bermuda Holdings Ltd. (the ‘Guarantors’). The guarantor structure described above differs from the guarantor structure associated with the senior notes issued by Willis North America (the ‘Willis North America Debt Securities’) (and for which condensed consolidating financial information is presented in Note 17) in that Willis Towers Watson is the Parent Issuer and Willis North America is a subsidiary guarantor. Presented below is condensed consolidating financial information for: (i) Willis Towers Watson, which is the Parent Issuer; (ii) the Guarantors, which are all 100 percent directly or indirectly owned subsidiaries of the parent; (iii) Other, which are the non-guarantor subsidiaries, on a combined basis; (iv) Consolidating adjustments; and (v) the Consolidated Company. The equity method has been used for investments in subsidiaries in the condensed consolidating balance sheets as of March 31, 2016 of Willis Towers Watson and the Guarantors. The entities included in the Other Guarantors column as of March 31, 2016 are Willis Towers Watson Sub Holdings Limited, Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, WTW Bermuda Holdings Ltd., Trinity Acquisition plc (formerly Trinity Acquisition Limited), Willis Group Limited and Willis North America Inc. Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 7 $ 2,212 $ — $ 2,219 Interest and other income — — 15 — 15 Total revenues — 7 2,227 — 2,234 Costs of providing services Salaries and benefits — (14 ) (1,182 ) — (1,196 ) Other operating expenses (1 ) (93 ) (337 ) — (431 ) Depreciation — (5 ) (38 ) — (43 ) Amortization — — (161 ) — (161 ) Restructuring costs — (13 ) (12 ) — (25 ) Integration expenses (1 ) (18 ) (33 ) — (52 ) Total costs of providing services (2 ) (143 ) (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (136 ) 464 — 326 Income from Group undertakings — 147 30 (177 ) — Expenses due to Group undertakings — (29 ) (148 ) 177 — Interest expense (11 ) (27 ) (8 ) — (46 ) Other expense, net (1 ) — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) (45 ) 321 — 262 Provision for income taxes — 41 (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) (4 ) 262 — 244 Interest in earnings of associates, net of tax — — 1 — 1 Equity account for subsidiaries 252 254 — (506 ) — NET INCOME 238 250 263 (506 ) 245 Income attributable to non-controlling interests — — (7 ) — (7 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ 256 $ (506 ) $ 238 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ 241 $ (464 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ 232 $ (464 ) $ 222 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 4 $ 1,077 $ — $ 1,081 Interest and other income — — 6 — 6 Total revenues — 4 1,083 — 1,087 Costs of providing services Salaries and benefits — (20 ) (547 ) — (567 ) Other operating expenses (9 ) (16 ) (135 ) — (160 ) Depreciation — (5 ) (17 ) — (22 ) Amortization — — (14 ) — (14 ) Restructuring costs — (19 ) (12 ) — (31 ) Integration expenses — — — — — Total costs of providing services (9 ) (60 ) (725 ) — (794 ) (Loss) Income from operations (9 ) (56 ) 358 — 293 Income from Group undertakings — 83 25 (108 ) — Expenses due to Group undertakings — (25 ) (83 ) 108 — Interest expense (11 ) (20 ) (2 ) — (33 ) Other expense, net (12 ) 6 (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) (12 ) 297 1 254 Provision for income taxes — 14 (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) 2 227 1 198 Interest in earnings of associates, net of tax — 2 14 — 16 Equity account for subsidiaries 242 233 — (475 ) — NET INCOME 210 237 241 (474 ) 214 Income attributable to non-controlling interests — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 237 $ (474 ) $ 210 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 370 $ (727 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 373 $ (727 ) $ 324 Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ 952 $ — $ 954 Fiduciary assets — — 12,031 — 12,031 Accounts receivable, net — 6 2,262 — 2,268 Prepaid and other current assets — 79 270 (23 ) 326 Amounts due from group undertakings 7,721 5,294 1,765 (14,780 ) — Total current assets 7,723 5,379 17,280 (14,803 ) 15,579 Investments in subsidiaries 3,993 9,686 — (13,679 ) — Fixed assets, net — 62 728 — 790 Goodwill — — 10,477 — 10,477 Other intangible assets, net — — 5,086 — 5,086 Pension benefits assets — — 749 — 749 Other non-current assets — 58 290 — 348 Non-current amounts due from group undertakings — 1,198 — (1,198 ) — Total non-current assets 3,993 11,004 17,330 (14,877 ) 17,450 TOTAL ASSETS $ 11,716 $ 16,383 $ 34,610 $ (29,680 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 38 1,070 — 1,109 Short-term debt and current portion of long-term debt — 1,032 112 — 1,144 Other current liabilities 69 62 864 (23 ) 972 Amounts due to group undertakings — 9,211 5,569 (14,780 ) — Total current liabilities 70 10,343 19,646 (14,803 ) 15,256 Long-term debt 495 2,040 232 — 2,767 Liability for pension benefits — — 1,210 — 1,210 Deferred tax liabilities — 2 1,232 — 1,234 Provision for liabilities — 120 480 — 600 Other non-current liabilities — 40 565 — 605 Non-current amounts due to group undertakings — — 1,198 (1,198 ) — Total non-current liabilities 495 2,202 4,917 (1,198 ) 6,416 TOTAL LIABILITIES 565 12,545 24,563 (16,001 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 9,841 (13,679 ) 11,151 Noncontrolling interests — — 153 — 153 Total equity 11,151 3,838 9,994 (13,679 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 16,383 $ 34,610 $ (29,680 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ 527 $ — $ 532 Fiduciary assets — — 10,458 — 10,458 Accounts receivable, net — 7 1,251 — 1,258 Prepaid and other current assets 1 67 194 (7 ) 255 Amounts due from group undertakings 3,423 1,257 1,259 (5,939 ) — Total current assets 3,427 1,333 13,689 (5,946 ) 12,503 Investments in subsidiaries — 4,275 — (4,275 ) — Fixed assets, net — 58 505 — 563 Goodwill — — 3,737 — 3,737 Other intangible assets, net — — 1,115 — 1,115 Pension benefits assets — — 623 — 623 Other non-current assets — 10 288 — 298 Non-current amounts due from group undertakings — 785 — (785 ) — Total non-current assets — 5,128 6,268 (5,060 ) 6,336 TOTAL ASSETS $ 3,427 $ 6,461 $ 19,957 $ (11,006 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 68 683 — 752 Short-term debt and current portion of long-term debt 300 609 79 — 988 Other current liabilities 15 61 534 (7 ) 603 Amounts due to group undertakings — 4,437 1,502 (5,939 ) — Total current liabilities 316 5,175 13,256 (5,946 ) 12,801 Investments in subsidiaries 387 — — (387 ) — Long-term debt 495 1,783 — — 2,278 Liability for pension benefits — — 279 — 279 Deferred tax liabilities — 1 239 — 240 Provision for liabilities — — 295 — 295 Other non-current liabilities — 36 497 — 533 Non-current amounts due to group undertakings — — 785 (785 ) — Total non-current liabilities 882 1,820 2,095 (1,172 ) 3,625 TOTAL LIABILITIES 1,198 6,995 15,351 (7,118 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) 4,422 (3,888 ) 2,229 Noncontrolling interests — — 131 — 131 Total equity 2,229 (534 ) 4,553 (3,888 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 6,461 $ 19,957 $ (11,006 ) $ 18,839 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (238 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (9 ) (39 ) — (48 ) Capitalized software costs — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — 469 — 469 Redemptions of held-to-maturity investments — — 11 — 11 Sales and redemptions of available for sale securities — — 9 — 9 Other, net — — (6 ) — (6 ) Proceeds from intercompany investing activities — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (4,227 ) (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — (8,200 ) — Additional investment in subsidiaries — (4,600 ) (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (5,236 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — (338 ) — — (338 ) Senior notes issued — 997 — — 997 Proceeds from issue of other debt — 400 — — 400 Repayments of debt (300 ) (406 ) (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,828 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — 9 — Net cash (used in) from financing activities $ (289 ) $ 5,472 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other Consolidating Consolidated NET CASH USED IN OPERATING ACTIVITIES $ (20 ) $ (34 ) $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (4 ) (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — (8 ) — (8 ) Other, net — — 17 — 17 Proceeds from intercompany investing activities 51 48 — (99 ) — Repayments of intercompany investing activities — (11 ) (26 ) 37 — Net cash from (used in) investing activities $ 51 $ 33 $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — (1 ) — (1 ) Repayments of debt — (4 ) — — (4 ) Repurchase of shares (15 ) — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — 3 — 38 Dividends paid (54 ) — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — (3 ) — (3 ) Proceeds from intercompany financing activities — 26 11 (37 ) — Repayments of intercompany financing activities — (23 ) (76 ) 99 — Net cash used in financing activities $ (34 ) $ (1 ) $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ 497 $ — $ 503 Financial Information for Issuer, Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries Trinity Acquisition plc (formerly Trinity Acquisition Limited) has $1.5 billion senior notes outstanding of which $525 million were issued on August 15, 2013 and $1.0 billion on March 15, 2016. All direct obligations under the senior notes were jointly and severally, irrevocably and fully and unconditionally guaranteed by Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, TA I Limited, Willis Group Limited and Willis North America Inc, and additionally, effective from March 9, 2016 , Willis Towers Watson Sub Holdings Limited and WTW Bermuda Holdings Ltd., collectively the ‘Other Guarantors’, and with Willis Towers Watson, the ‘Guarantor Companies’. The guarantor structure described above differs from the guarantor structure associated with the senior notes issued by the Company and Willis North America (the ‘Willis North America Debt Securities’) in that Trinity Acquisition plc (formerly Trinity Acquisition Limited) is the issuer and not a subsidiary guarantor, and Willis North America Inc. is a subsidiary guarantor. Presented below is condensed consolidating financial information for: (i) Willis Towers Watson, which is a guarantor, on a parent company only basis; (ii) the Other Guarantors, which are all wholly owned subsidiaries (directly or indirectly) of the parent. Willis Towers Watson Sub Holdings Limited, Willis Netherlands Holdings B.V, Willis Investment U.K. Holdings Limited, TA I Limited and WTW Bermuda Holdings Ltd. are all direct or indirect parents of the issuer and Willis Group Limited and Willis North America Inc., are direct or indirect wholly owned subsidiaries or the issuer; (iii) Trinity Acquisition plc (formerly Trinity Acquisition Limited), which is the issuer and is a 100 percent indirectly owned subsidiary of the parent; (iv) Other, which are the non-guarantor subsidiaries, on a combined basis; (v) Consolidating adjustments; and (vi) the Consolidated Company. The equity method has been used for investments in subsidiaries in the condensed consolidating balance sheets as of March 31, 2016 of Willis Towers Watson, the Other Guarantors and the Issuer. The entities included in the Other Guarantors column as of March 31, 2016 are Willis Towers Watson Sub Holdings Limited, Willis Netherlands Holdings B.V., Willis Investment U.K. Holdings Limited, Willis North America Inc.,TA I Limited, WTW Bermuda Holdings Ltd. and Willis Group Limited. Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 7 $ — $ 2,212 $ — $ 2,219 Interest and other income — — — 15 — 15 Total revenues — 7 — 2,227 — 2,234 Costs of providing services Salaries and benefits — (14 ) — (1,182 ) — (1,196 ) Other operating expenses (1 ) (93 ) — (337 ) — (431 ) Depreciation — (5 ) — (38 ) — (43 ) Amortization — — — (161 ) — (161 ) Restructuring costs — (13 ) — (12 ) — (25 ) Integration expenses (1 ) (18 ) — (33 ) — (52 ) Total costs of providing services (2 ) (143 ) — (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (136 ) — 464 — 326 Income from Group undertakings — 146 31 30 (207 ) — Expenses due to Group undertakings — (52 ) (7 ) (148 ) 207 — Interest expense (11 ) (9 ) (18 ) (8 ) — (46 ) Other expense, net (1 ) — — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) (51 ) 6 321 — 262 Provision for income taxes — 42 (1 ) (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) (9 ) 5 262 — 244 Interest in earnings of associates, net of tax — — — 1 — 1 Equity account for subsidiaries 252 259 174 — (685 ) — NET INCOME 238 250 179 263 (685 ) 245 Income attributable to non-controlling interests — — — (7 ) — (7 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ 179 $ 256 $ (685 ) $ 238 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ 161 $ 241 $ (625 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ 161 $ 232 $ (625 ) $ 222 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 4 $ — $ 1,077 $ — $ 1,081 Interest and other income — — — 6 — 6 Total revenues — 4 — 1,083 — 1,087 Costs of providing services Salaries and benefits — (20 ) — (547 ) — (567 ) Other operating expenses (9 ) (16 ) — (135 ) — (160 ) Depreciation — (5 ) — (17 ) — (22 ) Amortization — — — (14 ) — (14 ) Restructuring costs — (19 ) — (12 ) — (31 ) Integration expenses — — — — — — Total costs of providing services (9 ) (60 ) — (725 ) — (794 ) (Loss) Income from operations (9 ) (56 ) — 358 — 293 Income from Group undertakings — 90 22 25 (137 ) — Expenses due to Group undertakings — (47 ) (7 ) (83 ) 137 — Interest expense (11 ) (11 ) (9 ) (2 ) — (33 ) Other expense, net (12 ) 6 — (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) (18 ) 6 297 1 254 Provision for income taxes — 15 (1 ) (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) (3 ) 5 227 1 198 Interest in earnings of associates, net of tax |
Basis of Presentation and Sig27
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited quarterly condensed consolidated financial statements of Willis Towers Watson and our subsidiaries are presented in accordance with the rules and regulations of the Securities and Exchange Commission (‘SEC’) for quarterly reports on Form 10-Q and therefore do not include all of the information and footnotes required by U.S. generally accepted accounting principles (‘GAAP’). We have reclassified certain prior period amounts to conform to current period presentation. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial statements and results for the interim periods. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements should be read together with the Willis Towers Watson audited consolidated financial statements and notes thereto attached as Exhibit 99.1 to the Form 8-K filed with the SEC on March 10, 2016, and may be accessed via EDGAR on the SEC’s web site at www.sec.gov. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results that can be expected for the entire year. The results reflect certain estimates and assumptions made by management including those estimates used in calculating acquisition consideration and fair value of tangible and intangible assets and liabilities, professional liability claims, estimated bonuses, valuation of billed and unbilled receivables, and anticipated tax liabilities that affect the amounts reported in the condensed consolidated financial statements and related notes. |
Accounts Receivable | Accounts receivable includes both billed and unbilled receivables and are stated at estimated net realizable values. Allowances for billed receivables are 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. |
Revenue Recognition | Revenue includes insurance commissions, fees for consulting services rendered, hosted and delivered software, survey sales, investment income and other income. Revenue recognized in excess of billings is recorded as unbilled accounts receivable. Cash collections in excess of revenue recognized are recorded as deferred revenue until the revenue recognition criteria are met. 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 are included in other operating expenses as a cost of revenue. Commissions revenue. Brokerage income and fees negotiated in lieu of brokerage are recognized at the later of the policy inception date or when the policy placement is complete. In situations in which our fees are not fixed and determinable due to the uncertainty of the commission fee per policy, we recognize revenue as the fees are determined. Commissions on additional premiums and adjustments are recognized when approved by or agreed between the parties and collectability is reasonably assured. Consulting revenue. The majority of our consulting revenue consists of fees earned from providing consulting services. We recognize revenue from these consulting engagements when hours are worked, either on a time-and-expense basis or on a fixed-fee basis, depending on the terms and conditions defined at the inception of an engagement with a client. 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. Individual billing rates are principally based on a multiple of salary and compensation costs. Revenue for fixed-fee arrangements is based upon the proportional performance method to the extent estimates can be made of the remaining work required under the arrangement. If we do not have sufficient information to estimate proportional performance, we recognize the fees straight-line over the contract period. We typically have four types of fixed-fee arrangements: annual recurring projects, projects of a short duration, stand-ready obligations and non-recurring system projects. ◦ Annual recurring projects and projects of short duration. These projects are typically straightforward and highly predictable in nature. As a result, the project manager and financial staff are able to identify, as the project status is reviewed and bills are prepared monthly, the occasions when cost overruns could lead to the recording of a loss accrual. ◦ Stand-ready obligations. Where we are entitled to fees (whether fixed or variable based on assets under management or a per-participant per-month basis) regardless of the hours, we generally recognize this revenue on either a straight-line basis or as the variable fees are calculated. ◦ Non-recurring system projects. These projects are longer in duration and subject to more changes in scope as the project progresses. Certain software or outsourced administration contracts generally provide that if the client terminates a contract, we are entitled to payment for services performed through termination. Revenue recognition for fixed-fee engagements is affected by a number of factors that change the estimated amount of work required to complete the project such as changes in scope, the staffing on the engagement and/or the level of client participation. The 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. We have experienced certain costs in excess of estimates from time to time. Hosted software. We have developed various software programs and technologies that we provide to clients in connection with consulting services. In most instances, such software is hosted and maintained by us and ownership of the technology and rights to the related code remain with us. We defer costs for software developed to be utilized in providing services to a client, but for which the client does not have the contractual right to take possession, during the implementation stage. We recognize these deferred costs from the go live date, signaling the end of the implementation stage, until the end of the initial term of the contract with the client. We determined that the system implementation and customized ongoing administrative services are one combined service. Revenue is recognized over the service period, after the go live date, in proportion to the services performed. As a result, we do not recognize revenue during the implementation phase of an engagement. Delivered software. We deliver software under arrangements with clients that take possession of our software. The maintenance associated with the initial software fees is a fixed percentage which enables us to determine the stand-alone value of the delivered software separate from the maintenance. We recognize the initial software fees as software is delivered to the client and we recognize the maintenance ratably over the contract period based on each element’s relative fair value. For software arrangements in which initial fees are received in connection with mandatory maintenance for the initial software license to remain active, we determined that the initial maintenance period is substantive. Therefore, we recognize the fees for the initial license and maintenance bundle ratably over the initial contract term, which is generally one year . Each subsequent renewal fee is recognized ratably over the contractually stated renewal period. Surveys. We collect, analyze and compile data in the form of surveys for our clients who have the option of participating in the survey. The surveys are published online via a web tool that provides simplistic functionality. We have determined that the web tool is inconsequential to the overall arrangement. We record the survey revenue when the results are delivered online and made available to our clients that have a contractual right to the data. If the data is updated more frequently than annually, we recognize the survey revenue ratably over the contractually stated period. Investment income. Investment income is recognized as earned. Other Income. Other income comprises 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. |
Recent Accounting Pronouncements | Not yet adopted In May 2014, the Financial Accounting Standards Board (‘FASB’) issued Accounting Standard Update (‘ASU’) No. 2014-09 ‘Revenue From Contracts With Customers’. The new standard supersedes most current revenue recognition guidance and eliminates industry-specific guidance. The ASU is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. The ASU was originally scheduled to become effective for the Company at the beginning of its 2017 fiscal year; early adoption was not initially permitted. However, in August 2015, the FASB issued ASU No. 2015-14 ‘Revenue from Contracts from Customers: Deferral of the Effective Date’ deferring the effective date but permitting early adoption at the original effective date. Consequently, the guidance will now become mandatorily effective for the Company at the beginning of its 2018 fiscal year. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard and the Company is still evaluating its adoption methodology decision. In March 2016, the FASB issued ASU No. 2016-08 ‘Revenue from Contracts with Customers: Principal versus agent considerations’ and in April 2016, the FASB issued ASU No. 2016-10 ‘Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing’, both of which provide additional guidance and examples for the implementation of ASU No. 2014-09. The Company is currently assessing the impact that the standard and related updates will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01 ‘Recognition and Measurement of Financial Assets and Financial Liabilities’, which, among other things, amends the classification and measurement requirements for investments in equity securities and amends the presentation requirements for certain fair value changes for certain financial liabilities measured at fair value. The ASU becomes effective for the Company at the beginning of the 2018 fiscal year; only partial early adoption is permitted. The Company is required to apply a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 ‘Leases’, which requires a lessee to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The ASU becomes effective for the Company at the beginning of the 2019 fiscal year; early adoption is permitted. In transition, the Company is required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07 ‘Investments - Equity Method and Joint Venture’, which simplifies the accounting for equity method investments. The amendments in the ASU eliminate the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The ASU becomes effective for the Company at the beginning of the 2017 fiscal year; early adoption is permitted. The ASU is to be applied prospectively. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 ‘Compensation - Stock Compensation’, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The ASU becomes effective for the Company at the beginning of the 2017 fiscal year; early adoption is permitted. Certain applications of the ASU are to be applied prospectively or retrospectively with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. Adopted in the current period In June 2014, the FASB issued ASU No. 2014-12 ‘Stock Compensation’, which sets out the guidance where share-based payment awards granted to employees required specific performance targets to be achieved in order for employees to become eligible to vest in the awards and such performance targets could be achieved after an employee completes the requisite service period. The amendment in this update requires a performance target that affects vesting and that could be achieved after the requisite service period to be treated as a performance condition. The Company adopted this standard on January 1, 2016. The adoption has no material impact to the Company’s consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16 ‘Simplifying the Accounting for Measurement-Period Adjustments’ in relation to business combinations, which requires that an acquirer recognize adjustments to provisional amounts that are identified in the measurement period in the reporting period in which the adjustment amounts are determined. The Company adopted this standard on January 1, 2016. Adjustments made to provisional amounts related to business combinations are reflected in the condensed consolidated financial statements and disclosed in Note 7 — Goodwill and Intangible Assets and Note 3 — Merger, Acquisitions and Divestitures to these financial statements. |
Merger, Acquisitions and Dive28
Merger, Acquisitions and Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Towers Watson | |
Business Acquisition [Line Items] | |
Preliminary Calculation of Aggregate Merger Consideration | The table below presents the preliminary calculation of aggregate Merger Consideration . January 4, 2016 Number of shares of Towers Watson common stock outstanding as of January 4, 2016 69 million Exchange ratio 2.6490 Number of Willis Group Holdings shares issued (prior to reverse stock split) 184 million Willis Group Holdings price per share on January 4, 2016 $ 47.18 Fair value of 184 million Willis ordinary shares $ 8,686 Value of equity awards assumed 37 Preliminary estimated aggregate Merger Consideration $ 8,723 |
Schedule of Fair Values of the Identifiable Assets Acquired and Liabilities Assumed | A summary of the preliminary fair values of the identifiable assets acquired, and liabilities assumed, of Towers Watson at January 4, 2016 are summarized in the following table. January 4, 2016 Cash and cash equivalents $ 476 Accounts receivable, net 825 Other current assets 78 Fixed assets, net 207 Goodwill 6,702 Other intangible assets (i) 4,111 Pension benefits assets 67 Other non-current assets 85 Deferred tax liabilities (1,174 ) Liability for pension benefits (941 ) Other current liabilities (707 ) Other non-current liabilities (266 ) Long term debt, including current portion (ii) (740 ) Allocated Aggregate Merger Consideration $ 8,723 ______________________________ i. Represents identified finite-lived intangible assets; primarily relates to customer relationships and software and other marketing related intangibles. ii. Represents both debt due upon change of control of $400 million borrowed under Towers Watson’s term loan ( $188 million ) and revolving credit facility ( $212 million ) and an additional draw down under a new term loan of $340 million . The $400 million debt was repaid by Willis borrowings under the 1-year term loan facility on January 4, 2016. The $340 million new term loan partially funded the $694 million Towers Watson pre-merger special dividend. |
Schedule of Acquired Intangible Assets | The acquired intangible assets are attributable to the following categories: Amortization basis Fair Value Expected life (years) Customer relationships In line with underlying cash flows $ 2,231 7 - 17 Software In line with underlying cash flows or straight line basis 728 1 - 10 Product In line with underlying cash flows 47 20 IPR&D (i) n/a 91 n/a Trade name Straight line basis 1,003 25 Favorable lease agreements Straight line basis 11 4-11 $ 4,111 ______________________________ i. Represents software not yet placed in service as of the acquisition date. Once placed into service, each In process research and development (‘IPR&D’) software component will be reclassified into finite-lived software intangible assets and amortized in line with underlying cash flows or straight line basis. |
Unaudited Pro Forma Financial Information | Three Months Ended March 31, As reported Pro Forma 2016 2015 Total revenues $ 2,234 $ 2,012 Net income attributable to Willis Towers Watson $ 238 $ 251 Diluted earnings per share $ 1.75 $ 1.82 |
Gras Savoye | |
Business Acquisition [Line Items] | |
Schedule of Fair Values of the Identifiable Assets Acquired and Liabilities Assumed | The following table presents the Company’s preliminary allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values: December 29, 2015 Cash and cash equivalents $ 87 Fiduciary assets 625 Accounts receivable, net 90 Goodwill 573 Intangible assets 445 Other assets 55 Fiduciary liabilities (625 ) Deferred revenue and accrued expenses (80 ) Short and long-term debt (80 ) Net deferred tax liabilities (89 ) Other liabilities (178 ) Net assets acquired 823 Decrease in paid in capital for purchase of noncontrolling interest 50 Noncontrolling interest acquired (40 ) Preliminary purchase price allocation $ 833 |
Schedule of Acquired Intangible Assets | The acquired intangible assets are attributable to the following categories: Amortization basis Fair Value Expected life (years) Customer relationships In line with underlying cash flows $ 332 20 Software and other intangibles Straight line basis 79 5 Trade name Straight line basis 34 14 $ 445 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenue (Net of Reimbursable Expenses) of the Reported Segments | The table below presents commissions and fees revenue for Legacy Willis reportable segments and revenue (net of reimbursable expenses) for Legacy Towers Watson reportable segments for the three months ended March 31, 2016 and 2015 : Three Months Ended 2016 2015 Willis International $ 481 $ 287 Willis North America 368 356 Willis Capital, Wholesale, and Reinsurance 331 296 Willis GB 139 142 Towers Watson Benefits 486 — Towers Watson Exchange Solutions 152 — Towers Watson Risk and Financial Services 144 — Towers Watson Talent and Rewards 124 — Total segment revenue $ 2,225 $ 1,081 |
Net Operating Income of the Reported Segments | The table below presents operating income of the reported segments for the three months ended March 31, 2016 and 2015 : Three Months Ended 2016 2015 Willis International $ 147 $ 70 Willis North America 83 78 Willis Capital, Wholesale, and Reinsurance 152 153 Willis GB 20 21 Towers Watson Benefits 173 — Towers Watson Exchange Solutions 45 — Towers Watson Risk and Financial Services 34 — Towers Watson Talent and Rewards 13 — Total segment operating income $ 667 $ 322 |
Reconciliation of the Information Reported by Segment to the Consolidated Amounts | The table below presents a reconciliation of the information reported by segment to the consolidated amounts reported for the three months ended March 31, 2016 and 2015 : Three Months Ended 2016 2015 Revenue: Total segment revenue $ 2,225 $ 1,081 Fair value adjustment to deferred revenue in purchase accounting (32 ) — Reimbursable expenses and interest and other 41 6 Revenue $ 2,234 $ 1,087 Total segment operating income $ 667 $ 322 Differences in allocation methods (i) 13 (15 ) Fair value adjustment for deferred revenue (32 ) — Amortization (iii) (126 ) — Restructuring costs (iii) (5 ) (11 ) Merger-related integration expenses (44 ) — Provision for the Stanford litigation (50 ) — Share-based compensation (ii) (15 ) — Discretionary compensation (iv) (84 ) — Payroll tax on discretionary compensation (iv) (6 ) — Other, net 8 (3 ) Income from operations 326 293 Interest expense (46 ) (33 ) Other expense, net (18 ) (6 ) Income from continuing operations before income taxes and interest in earnings of associates $ 262 $ 254 ________________________ i. Certain costs, including costs related to corporate functions and leadership projects, are allocated to our segments based on budgeted expenses determined at the beginning of the fiscal year, as management believes that these costs are largely uncontrollable to the segment. To the extent that the actual expense base, upon which allocations are made, differs from the forecast/budget amount, a reconciling item will be created between internally allocated expenses and the actual expense that we report for GAAP purposes. ii. For Legacy Towers Watson segments, share-based compensation excludes certain share-based payments granted in conjunction with our performance bonus, which are included in discretionary compensation. iii. Legacy Willis segments include Amortization and Restructuring Costs iv. Legacy Towers Watson segments exclude discretionary compensation and related payroll taxes. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Analysis of the Cost for Restructuring | An analysis of the cost for restructuring recognized in the statement of operations for the three months ended March 31, 2016 and 2015 by Legacy Willis segment, are as follows: Three Months Ended March 31, 2016 Legacy Willis International Legacy Willis North America Legacy Willis Capital, Wholesale & Reinsurance Legacy Willis GB Legacy Willis Corporate & Other Total Termination benefits $ 2 $ 1 $ — $ — $ — $ 3 Professional services and other 6 7 1 3 5 22 Total $ 8 $ 8 $ 1 $ 3 $ 5 $ 25 Three Months Ended March 31, 2015 Legacy Willis International Legacy Willis North America Legacy Willis Capital, Wholesale & Reinsurance Legacy Willis GB Legacy Willis Corporate & Other Total Termination benefits $ 2 $ 2 $ 6 $ — $ — $ 10 Professional services and other 1 5 — 4 11 21 Total $ 3 $ 7 $ 6 $ 4 $ 11 $ 31 An analysis of the total cumulative restructuring costs recognized for the Operational Improvement Program from commencement to March 31, 2016 by segment is as follows: Legacy Willis International Legacy Willis North America Legacy Willis Capital, Wholesale & Reinsurance Legacy Willis GB Legacy Willis Corporate & Other Total 2014 Termination benefits $ 3 $ 3 $ 1 $ 9 $ — $ 16 Professional services and other 2 — — 1 17 20 2015 Termination benefits $ 8 $ 8 $ 7 $ 10 $ 3 $ 36 Professional services and other 18 23 2 17 30 90 2016 Termination benefits $ 2 $ 1 $ — $ — $ — $ 3 Professional services and other 6 7 1 3 5 22 Total Termination benefits $ 13 $ 12 $ 8 $ 19 $ 3 $ 55 Professional services and other 26 30 3 21 52 132 Total $ 39 $ 42 $ 11 $ 40 $ 55 $ 187 |
Schedule of Restructuring Liability | At March 31, 2016 , the Company’s liability under the Operational Improvement Program is as follows: Termination Benefits Professional Services and Other Total Balance at January 1, 2014 $ — $ — $ — Charges incurred 16 20 36 Cash payments (11 ) (14 ) (25 ) Balance at December 31, 2014 5 6 11 Charges incurred 36 90 126 Cash payments (26 ) (85 ) (111 ) Balance at December 31, 2015 15 11 26 Charges incurred 3 22 25 Cash payments (7 ) (23 ) (30 ) Balance at March 31, 2016 $ 11 $ 10 $ 21 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Goodwill | The components of goodwill are outlined below for the three months ended March 31, 2016 : LW LW LW LW LTW LTW LTW LTW Total Balance at December 31, 2015 Goodwill, gross $ 1,120 $ 1,512 $ 1,025 $ 572 $ — $ — $ — $ — $ 4,229 Accumulated impairment losses — (492 ) — — — — — — (492 ) Goodwill, net $ 1,120 $ 1,020 $ 1,025 $ 572 $ — $ — $ — $ — $ 3,737 Purchase price allocation adjustments — — — 2 — — — — 2 Goodwill acquired during the period 2 — — — 2,987 2,240 728 747 6,704 Goodwill disposed of during the period — (5 ) — — — — — — (5 ) Foreign exchange 46 — (4 ) (3 ) — — — — 39 Balance at March 31, 2016 Goodwill, gross $ 1,168 $ 1,507 $ 1,021 $ 571 $ 2,987 $ 2,240 $ 728 $ 747 $ 10,969 Accumulated impairment losses — (492 ) — — — — — — (492 ) Goodwill, net $ 1,168 $ 1,015 $ 1,021 $ 571 $ 2,987 $ 2,240 $ 728 $ 747 $ 10,477 |
Changes in the Net Carrying Amount of the Components of Finite-Lived Intangible Assets | The following table reflects changes in the net carrying amount of the components of finite-lived intangible assets for the three months ended March 31, 2016 : Balance as of December 31, 2015 Intangible assets acquired Intangible assets disposed Amortization Foreign Exchange Balance as of March 31, 2016 Client relationships $ 920 $ 2,231 $ (3 ) $ (110 ) $ 19 $ 3,057 Management contracts 62 — — (1 ) 2 63 Software 77 728 — (38 ) 1 768 Trademark and trade name 50 1,003 — (10 ) 1 1,044 Product — 47 — (1 ) (1 ) 45 Favorable agreements 2 11 — — — 13 Other 4 1 — (1 ) 1 5 Total amortizable intangible assets $ 1,115 $ 4,021 $ (3 ) $ (161 ) $ 23 $ 4,995 |
Schedule of Carrying Values of Finite-Lived Intangible Assets and Liabilities | The following table reflects the carrying value of finite-lived intangible assets and liabilities as of March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Client relationships $ 3,535 $ (478 ) $ 1,293 $ (373 ) Management contracts 69 (6 ) 67 (5 ) Software 805 (37 ) 77 — Trademark and trade name 1,056 (12 ) 52 (2 ) Product 46 (1 ) — — Favorable agreements 14 (1 ) 2 — Other 8 (3 ) 8 (4 ) Total finite-lived assets $ 5,533 $ (538 ) $ 1,499 $ (384 ) Unfavorable agreements $ 35 $ (2 ) $ 23 $ — Total finite-lived intangible liabilities $ 35 $ (2 ) $ 23 $ — |
Schedule of Future Amortization Expense and Rent Offset | The table below reflects the future estimated amortization expense for amortizable intangible assets and the rent offset resulting from amortization of the net lease intangible assets and liabilities for the remainder of 2016 and for subsequent years: Year ending December 31, Amortization Rent offset Remainder of 2016 $ 471 $ (3 ) 2017 594 (4 ) 2018 544 (3 ) 2019 488 (2 ) 2020 431 (2 ) Thereafter 2,454 (6 ) Total $ 4,982 $ (20 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Short-term debt and current portion of long-term debt consists of the following: March 31, 2016 December 31, 2015 1-year term loan facility matures 2016 $ 617 $ 587 4.125% senior notes due 2016 — 300 6.200% senior notes due 2017 394 — Current portion of 7-year term loan facility expires 2018 22 22 Current portion of term loan expires 2019 85 — Short-term borrowing under bank overdraft arrangement 26 79 $ 1,144 $ 988 Long-term debt consists of the following: March 31, 2016 December 31, 2015 Revolving $800 million credit facility $ 135 $ 467 6.200% senior notes due 2017 — 394 7-year term loan facility expires 2018 213 218 Term loan expires 2019 232 — 7.000% senior notes due 2019 186 186 5.750% senior notes due 2021 495 495 3.500% senior notes due 2021 445 — 4.625% senior notes due 2023 247 247 4.400% senior notes due 2026 543 — 6.125% senior notes due 2043 271 271 $ 2,767 $ 2,278 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following presents our assets and liabilities measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 : Fair Value Measurements on a Recurring Basis at March 31, 2016 Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities: Mutual funds / exchange traded funds $ 39 $ — $ — $ 39 Derivatives: Derivative financial instruments (i) $ — $ 15 $ — $ 15 Liabilities: Derivatives: Derivative financial instruments (i) $ — $ 83 $ — $ 83 Fair Value Measurements on a Recurring Basis at December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Derivatives: Derivative financial instruments (i) $ — $ 26 $ — $ 26 Liabilities: Derivatives: Derivative financial instruments (i) $ — $ 57 $ — $ 57 _________________________ i See Note 8 — Derivative Financial Instruments for further information on our derivative investments. |
Schedule of Liabilities Whose Carrying Values Differ From the Fair Value and are Not Measured on a Recurring Basis | The following presents our liabilities whose carrying value differs from the fair value and are not measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Liabilities: Current portion of long term debt $ 1,144 $ 1,164 $ 988 $ 998 Long-term debt $ 2,767 $ 2,922 $ 2,278 $ 2,394 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Periodic Benefit Cost | The following table sets forth the components of net periodic benefit cost for the Company’s defined benefit pension and post-retirement welfare plans for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 U.S. U.K. Other PRW U.S. U.K. Other PRW Service cost $ 15 $ 6 $ 5 $ — $ — $ 10 $ 1 $ — Interest cost 34 28 6 1 10 26 2 — Expected return on plan assets (59 ) (64 ) (8 ) — (14 ) (57 ) (1 ) — Settlement — — 2 — — — — — Amortization of net loss 3 11 — — 3 9 — — Amortization of prior service (credit) — (5 ) — — — (2 ) — — Net periodic benefit (income) cost $ (7 ) $ (24 ) $ 5 $ 1 $ (1 ) $ (14 ) $ 2 $ — |
Supplementary Information for35
Supplementary Information for Select Balance Sheet Accounts (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net consists of the following: March 31, December 31, Billed, net of allowance for doubtful debts of $34 million and $22 million $ 1,640 $ 1,051 Accrued and unbilled, at estimated net realizable value 628 207 Accounts receivable, net $ 2,268 $ 1,258 |
Schedule of Prepaid and Other Current Assets | Prepaid and other current assets consist of the following: March 31, December 31, Prepayments and accrued income $ 142 $ 86 Derivatives and investments 29 29 Deferred compensation plan assets 20 20 Retention incentives 14 14 Corporate income and other taxes 72 66 Other current assets 49 40 Total prepaid other current assets $ 326 $ 255 |
Schedule of Other Non-current Assets | Other non-current assets consist of the following: March 31, December 31, Prepayments and accrued income $ 28 $ 23 Deferred compensation plan assets 102 102 Deferred tax assets 44 76 Accounts receivable, net 28 30 Other investments 53 42 Other non-current assets 93 25 Total other non-current assets $ 348 $ 298 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following: March 31, December 31, Accounts payable $ 114 $ 75 Income and other taxes payable 136 45 Contingent and deferred consideration on acquisition 69 68 Payroll related liabilities 219 82 Derivatives 50 31 Third party commissions 180 177 Other current liabilities 204 125 Total other current liabilities $ 972 $ 603 |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consist of the following: March 31, December 31, Incentives from lessors $ 173 $ 175 Deferred compensation plan liability 102 102 Contingent and deferred consideration on acquisition 151 156 Income taxes payable 57 20 Derivatives 33 27 Other non-current liabilities 89 53 Total other non-current liabilities $ 605 $ 533 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income/(Loss) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Foreign currency translation (i) Gains and losses on cash flow hedges (i) Defined pension and post-retirement benefit costs (ii) Total As of December 31, 2014 $ (191 ) $ 18 $ (893 ) $ (1,066 ) Other comprehensive income/(loss) before reclassifications (105 ) (11 ) 222 106 Amounts reclassified from accumulated other comprehensive income (net of income tax of $2) — — 8 8 Net current-period other comprehensive income/(loss) (105 ) (11 ) 230 114 As of March 31, 2015 $ (296 ) $ 7 $ (663 ) $ (952 ) As of December 31, 2015 $ (314 ) $ (10 ) $ (713 ) $ (1,037 ) Other comprehensive income/(loss) before reclassifications 4 (19 ) (6 ) (21 ) Amounts reclassified from accumulated other comprehensive income (net of income tax of $3) — (3 ) 8 5 Net current-period other comprehensive income/(loss) 4 (22 ) 2 (16 ) As of March 31, 2016 $ (310 ) $ (32 ) $ (711 ) $ (1,053 ) ________________________ i Reclassification adjustments from accumulated other comprehensive income are included in other expense, net for foreign currency translation and gains and losses on cash flow hedges. See Note 8 — Derivative Financial Instruments for additional details regarding the reclassification adjustments for the hedge settlements. ii Reclassification adjustments from accumulated other comprehensive income are included in the computation of net periodic pension cost (see Note 11 — Retirement Benefits ) which is included in salaries and benefits in the accompanying condensed consolidated statements of operations. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share are as follows: Three Months Ended 2016 2015 Net income attributable to Willis Towers Watson $ 238 $ 210 Basic average number of shares outstanding (i) 135 68 Dilutive effect of potentially issuable shares (i) 1 1 Diluted average number of shares outstanding (i) 136 69 Basic earnings per share (i) $ 1.76 $ 3.09 Dilutive effect of potentially issuable shares (i) (0.01 ) (0.05 ) Diluted earnings per share (i) $ 1.75 $ 3.04 ____________________________ i. Shares outstanding, potentially issuable shares, basic and diluted earnings per share, and the dilutive effect of potentially issuable shares, for the three months ended March 31, 2015 have been retroactively adjusted to reflect the reverse stock split effected on January 4, 2016. See Note 3 — Merger, Acquisitions and Divestitures for further details. |
Financial Information for Par38
Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Unaudited Condensed Consolidated Statement of Operations | Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ — $ 4 $ 1,077 $ — $ 1,081 Interest and other income — — — 6 — 6 Total revenues — — 4 1,083 — 1,087 Costs of providing services Salaries and benefits — — (20 ) (547 ) — (567 ) Other operating expenses (9 ) (14 ) (2 ) (135 ) — (160 ) Depreciation — (1 ) (4 ) (17 ) — (22 ) Amortization — — — (14 ) — (14 ) Restructuring costs — (14 ) (5 ) (12 ) — (31 ) Integration expenses — — — — — — Total costs of providing services (9 ) (29 ) (31 ) (725 ) — (794 ) (Loss) Income from operations (9 ) (29 ) (27 ) 358 — 293 Income from Group undertakings — 54 56 25 (135 ) — Expenses due to Group undertakings — (8 ) (44 ) (83 ) 135 — Interest expense (11 ) (9 ) (11 ) (2 ) — (33 ) Other expense, net (12 ) 6 — (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) 14 (26 ) 297 1 254 Provision for income taxes — 6 8 (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) 20 (18 ) 227 1 198 Interest in earnings of associates, net of tax — 2 — 14 — 16 Equity account for subsidiaries 242 215 66 — (523 ) — NET INCOME 210 237 48 241 (522 ) 214 Income attributable to non-controlling interests — — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 48 $ 237 $ (522 ) $ 210 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ — $ 7 $ 2,212 $ — $ 2,219 Interest and other income — — — 15 — 15 Total revenues — — 7 2,227 — 2,234 Costs of providing services Salaries and benefits — — (14 ) (1,182 ) — (1,196 ) Other operating expenses (1 ) (35 ) (58 ) (337 ) — (431 ) Depreciation — (1 ) (4 ) (38 ) — (43 ) Amortization — — — (161 ) — (161 ) Restructuring costs — (4 ) (9 ) (12 ) — (25 ) Integration expenses (1 ) (12 ) (6 ) (33 ) — (52 ) Total costs of providing services (2 ) (52 ) (91 ) (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (52 ) (84 ) 464 — 326 Income from Group undertakings — 121 54 30 (205 ) — Expenses due to Group undertakings — (14 ) (43 ) (148 ) 205 — Interest expense (11 ) (17 ) (10 ) (8 ) — (46 ) Other expense, net (1 ) — — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) 38 (83 ) 321 — 262 Provision for income taxes — 13 28 (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) 51 (55 ) 262 — 244 Interest in earnings of associates, net of tax — — — 1 — 1 Equity account for subsidiaries 252 199 14 — (465 ) — NET INCOME (LOSS) 238 250 (41 ) 263 (465 ) 245 Income attributable to non-controlling interests — — — (7 ) — (7 ) NET INCOME (LOSS) ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ (41 ) $ 256 $ (465 ) $ 238 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 4 $ 1,077 $ — $ 1,081 Interest and other income — — 6 — 6 Total revenues — 4 1,083 — 1,087 Costs of providing services Salaries and benefits — (20 ) (547 ) — (567 ) Other operating expenses (9 ) (16 ) (135 ) — (160 ) Depreciation — (5 ) (17 ) — (22 ) Amortization — — (14 ) — (14 ) Restructuring costs — (19 ) (12 ) — (31 ) Integration expenses — — — — — Total costs of providing services (9 ) (60 ) (725 ) — (794 ) (Loss) Income from operations (9 ) (56 ) 358 — 293 Income from Group undertakings — 83 25 (108 ) — Expenses due to Group undertakings — (25 ) (83 ) 108 — Interest expense (11 ) (20 ) (2 ) — (33 ) Other expense, net (12 ) 6 (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) (12 ) 297 1 254 Provision for income taxes — 14 (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) 2 227 1 198 Interest in earnings of associates, net of tax — 2 14 — 16 Equity account for subsidiaries 242 233 — (475 ) — NET INCOME 210 237 241 (474 ) 214 Income attributable to non-controlling interests — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 237 $ (474 ) $ 210 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 7 $ 2,212 $ — $ 2,219 Interest and other income — — 15 — 15 Total revenues — 7 2,227 — 2,234 Costs of providing services Salaries and benefits — (14 ) (1,182 ) — (1,196 ) Other operating expenses (1 ) (93 ) (337 ) — (431 ) Depreciation — (5 ) (38 ) — (43 ) Amortization — — (161 ) — (161 ) Restructuring costs — (13 ) (12 ) — (25 ) Integration expenses (1 ) (18 ) (33 ) — (52 ) Total costs of providing services (2 ) (143 ) (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (136 ) 464 — 326 Income from Group undertakings — 147 30 (177 ) — Expenses due to Group undertakings — (29 ) (148 ) 177 — Interest expense (11 ) (27 ) (8 ) — (46 ) Other expense, net (1 ) — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) (45 ) 321 — 262 Provision for income taxes — 41 (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) (4 ) 262 — 244 Interest in earnings of associates, net of tax — — 1 — 1 Equity account for subsidiaries 252 254 — (506 ) — NET INCOME 238 250 263 (506 ) 245 Income attributable to non-controlling interests — — (7 ) — (7 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ 256 $ (506 ) $ 238 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 7 $ — $ 2,212 $ — $ 2,219 Interest and other income — — — 15 — 15 Total revenues — 7 — 2,227 — 2,234 Costs of providing services Salaries and benefits — (14 ) — (1,182 ) — (1,196 ) Other operating expenses (1 ) (93 ) — (337 ) — (431 ) Depreciation — (5 ) — (38 ) — (43 ) Amortization — — — (161 ) — (161 ) Restructuring costs — (13 ) — (12 ) — (25 ) Integration expenses (1 ) (18 ) — (33 ) — (52 ) Total costs of providing services (2 ) (143 ) — (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (136 ) — 464 — 326 Income from Group undertakings — 146 31 30 (207 ) — Expenses due to Group undertakings — (52 ) (7 ) (148 ) 207 — Interest expense (11 ) (9 ) (18 ) (8 ) — (46 ) Other expense, net (1 ) — — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) (51 ) 6 321 — 262 Provision for income taxes — 42 (1 ) (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) (9 ) 5 262 — 244 Interest in earnings of associates, net of tax — — — 1 — 1 Equity account for subsidiaries 252 259 174 — (685 ) — NET INCOME 238 250 179 263 (685 ) 245 Income attributable to non-controlling interests — — — (7 ) — (7 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ 179 $ 256 $ (685 ) $ 238 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 4 $ — $ 1,077 $ — $ 1,081 Interest and other income — — — 6 — 6 Total revenues — 4 — 1,083 — 1,087 Costs of providing services Salaries and benefits — (20 ) — (547 ) — (567 ) Other operating expenses (9 ) (16 ) — (135 ) — (160 ) Depreciation — (5 ) — (17 ) — (22 ) Amortization — — — (14 ) — (14 ) Restructuring costs — (19 ) — (12 ) — (31 ) Integration expenses — — — — — — Total costs of providing services (9 ) (60 ) — (725 ) — (794 ) (Loss) Income from operations (9 ) (56 ) — 358 — 293 Income from Group undertakings — 90 22 25 (137 ) — Expenses due to Group undertakings — (47 ) (7 ) (83 ) 137 — Interest expense (11 ) (11 ) (9 ) (2 ) — (33 ) Other expense, net (12 ) 6 — (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) (18 ) 6 297 1 254 Provision for income taxes — 15 (1 ) (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) (3 ) 5 227 1 198 Interest in earnings of associates, net of tax — 2 — 14 — 16 Equity account for subsidiaries 242 238 209 — (689 ) — NET INCOME 210 237 214 241 (688 ) 214 Income attributable to non-controlling interests — — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 214 $ 237 $ (688 ) $ 210 |
Unaudited Condensed Consolidated Statement of Comprehensive Income | Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ (58 ) $ 241 $ (406 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ (58 ) $ 232 $ (406 ) $ 222 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 51 $ 370 $ (778 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 51 $ 373 $ (778 ) $ 324 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ 241 $ (464 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ 232 $ (464 ) $ 222 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 370 $ (727 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 373 $ (727 ) $ 324 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ 161 $ 241 $ (625 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ 161 $ 232 $ (625 ) $ 222 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 347 $ 370 $ (1,074 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 347 $ 373 $ (1,074 ) $ 324 |
Unaudited Condensed Consolidated Balance Sheet | Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ — $ 952 $ — $ 954 Fiduciary assets — — — 12,031 — 12,031 Accounts receivable, net — — 6 2,262 — 2,268 Prepaid and other current assets — 57 22 270 (23 ) 326 Amounts due from group undertakings 7,721 5,644 910 1,765 (16,040 ) — Total current assets 7,723 5,701 938 17,280 (16,063 ) 15,579 Investments in subsidiaries 3,993 8,527 6,002 — (18,522 ) — Fixed assets, net — 27 35 728 — 790 Goodwill — — — 10,477 — 10,477 Other intangible assets, net — — — 5,086 — 5,086 Pension benefits assets — — — 749 — 749 Other non-current assets — 4 54 290 — 348 Non-current amounts due from group undertakings — 918 798 — (1,716 ) — Total non-current assets 3,993 9,476 6,889 17,330 (20,238 ) 17,450 TOTAL ASSETS $ 11,716 $ 15,177 $ 7,827 $ 34,610 $ (36,301 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 21 17 1,070 — 1,109 Short-term debt and current portion of long-term debt — 638 394 112 — 1,144 Other current liabilities 69 46 16 864 (23 ) 972 Amounts due to group undertakings — 8,754 1,717 5,569 (16,040 ) — Total current liabilities 70 9,459 2,144 19,646 (16,063 ) 15,256 Long-term debt 495 1,853 187 232 — 2,767 Liability for pension benefits — — — 1,210 — 1,210 Deferred tax liabilities — 2 — 1,232 — 1,234 Provision for liabilities — — 120 480 — 600 Other non-current liabilities — 25 15 565 — 605 Amounts due to group undertakings — — 518 1,198 (1,716 ) — Total non-current liabilities 495 1,880 840 4,917 (1,716 ) 6,416 TOTAL LIABILITIES 565 11,339 2,984 24,563 (17,779 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 4,843 9,841 (18,522 ) 11,151 Noncontrolling interests — — — 153 — 153 Total equity 11,151 3,838 4,843 9,994 (18,522 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 15,177 $ 7,827 $ 34,610 $ (36,301 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ — $ 527 $ — $ 532 Fiduciary assets — — — 10,458 — 10,458 Accounts receivable, net — — 7 1,251 — 1,258 Prepaid and other current assets 1 49 18 194 (7 ) 255 Amounts due from group undertakings 3,423 1,684 822 1,259 (7,188 ) — Total current assets 3,427 1,735 847 13,689 (7,195 ) 12,503 Investments in subsidiaries — 3,208 832 — (4,040 ) Fixed assets, net — 23 35 505 — 563 Goodwill — — — 3,737 — 3,737 Other intangible assets, net — — — 1,115 — 1,115 Pension benefits assets — — — 623 — 623 Other non-current assets — 8 2 288 — 298 Non-current amounts due from group undertakings — 518 785 — (1,303 ) — Total non-current assets — 3,757 1,654 6,268 (5,343 ) 6,336 TOTAL ASSETS $ 3,427 $ 5,492 $ 2,501 $ 19,957 $ (12,538 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 13 55 683 — 752 Short-term debt and current portion of long-term debt 300 609 — 79 — 988 Other current liabilities 15 38 23 534 (7 ) 603 Amounts due to group undertakings — 4,141 1,545 1,502 (7,188 ) — Total current liabilities 316 4,801 1,623 13,256 (7,195 ) 12,801 Long-term debt 495 1,203 580 — — 2,278 Liability for pension benefits — — — 279 — 279 Deferred tax liabilities — 1 — 239 — 240 Provision for liabilities — — — 295 — 295 Investments in subsidiaries 387 — — — (387 ) — Other non-current liabilities — 21 15 497 — 533 Non-current amounts due to group undertakings — — 518 785 (1,303 ) — Total non-current liabilities 882 1,225 1,113 2,095 (1,690 ) 3,625 TOTAL LIABILITIES 1,198 6,026 2,736 15,351 (8,885 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) (235 ) 4,422 (3,653 ) 2,229 Noncontrolling interests — — — 131 — 131 Total equity 2,229 (534 ) (235 ) 4,553 (3,653 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 5,492 $ 2,501 $ 19,957 $ (12,538 ) $ 18,839 Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ 952 $ — $ 954 Fiduciary assets — — 12,031 — 12,031 Accounts receivable, net — 6 2,262 — 2,268 Prepaid and other current assets — 79 270 (23 ) 326 Amounts due from group undertakings 7,721 5,294 1,765 (14,780 ) — Total current assets 7,723 5,379 17,280 (14,803 ) 15,579 Investments in subsidiaries 3,993 9,686 — (13,679 ) — Fixed assets, net — 62 728 — 790 Goodwill — — 10,477 — 10,477 Other intangible assets, net — — 5,086 — 5,086 Pension benefits assets — — 749 — 749 Other non-current assets — 58 290 — 348 Non-current amounts due from group undertakings — 1,198 — (1,198 ) — Total non-current assets 3,993 11,004 17,330 (14,877 ) 17,450 TOTAL ASSETS $ 11,716 $ 16,383 $ 34,610 $ (29,680 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 38 1,070 — 1,109 Short-term debt and current portion of long-term debt — 1,032 112 — 1,144 Other current liabilities 69 62 864 (23 ) 972 Amounts due to group undertakings — 9,211 5,569 (14,780 ) — Total current liabilities 70 10,343 19,646 (14,803 ) 15,256 Long-term debt 495 2,040 232 — 2,767 Liability for pension benefits — — 1,210 — 1,210 Deferred tax liabilities — 2 1,232 — 1,234 Provision for liabilities — 120 480 — 600 Other non-current liabilities — 40 565 — 605 Non-current amounts due to group undertakings — — 1,198 (1,198 ) — Total non-current liabilities 495 2,202 4,917 (1,198 ) 6,416 TOTAL LIABILITIES 565 12,545 24,563 (16,001 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 9,841 (13,679 ) 11,151 Noncontrolling interests — — 153 — 153 Total equity 11,151 3,838 9,994 (13,679 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 16,383 $ 34,610 $ (29,680 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ 527 $ — $ 532 Fiduciary assets — — 10,458 — 10,458 Accounts receivable, net — 7 1,251 — 1,258 Prepaid and other current assets 1 67 194 (7 ) 255 Amounts due from group undertakings 3,423 1,257 1,259 (5,939 ) — Total current assets 3,427 1,333 13,689 (5,946 ) 12,503 Investments in subsidiaries — 4,275 — (4,275 ) — Fixed assets, net — 58 505 — 563 Goodwill — — 3,737 — 3,737 Other intangible assets, net — — 1,115 — 1,115 Pension benefits assets — — 623 — 623 Other non-current assets — 10 288 — 298 Non-current amounts due from group undertakings — 785 — (785 ) — Total non-current assets — 5,128 6,268 (5,060 ) 6,336 TOTAL ASSETS $ 3,427 $ 6,461 $ 19,957 $ (11,006 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 68 683 — 752 Short-term debt and current portion of long-term debt 300 609 79 — 988 Other current liabilities 15 61 534 (7 ) 603 Amounts due to group undertakings — 4,437 1,502 (5,939 ) — Total current liabilities 316 5,175 13,256 (5,946 ) 12,801 Investments in subsidiaries 387 — — (387 ) — Long-term debt 495 1,783 — — 2,278 Liability for pension benefits — — 279 — 279 Deferred tax liabilities — 1 239 — 240 Provision for liabilities — — 295 — 295 Other non-current liabilities — 36 497 — 533 Non-current amounts due to group undertakings — — 785 (785 ) — Total non-current liabilities 882 1,820 2,095 (1,172 ) 3,625 TOTAL LIABILITIES 1,198 6,995 15,351 (7,118 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) 4,422 (3,888 ) 2,229 Noncontrolling interests — — 131 — 131 Total equity 2,229 (534 ) 4,553 (3,888 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 6,461 $ 19,957 $ (11,006 ) $ 18,839 Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ — $ 952 $ — $ 954 Fiduciary assets — — — 12,031 — 12,031 Accounts receivable, net — 6 — 2,262 — 2,268 Prepaid and other current assets — 85 1 270 (30 ) 326 Amounts due from group undertakings 7,721 4,709 1,817 1,765 (16,012 ) — Total current assets 7,723 4,800 1,818 17,280 (16,042 ) 15,579 Investments in subsidiaries 3,993 9,486 8,386 — (21,865 ) — Fixed assets, net — 62 — 728 — 790 Goodwill — — — 10,477 — 10,477 Other intangible assets, net — — — 5,086 — 5,086 Pension benefits assets — — — 749 — 749 Other non-current assets — 58 — 290 — 348 Non-current amounts due from group undertakings — 798 918 — (1,716 ) — Total non-current assets 3,993 10,404 9,304 17,330 (23,581 ) 17,450 TOTAL ASSETS $ 11,716 $ 15,204 $ 11,122 $ 34,610 $ (39,623 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 35 3 1,070 — 1,109 Short-term debt and current portion of long-term debt — 394 638 112 — 1,144 Other current liabilities 69 57 12 864 (30 ) 972 Amounts due to group undertakings — 10,013 430 5,569 (16,012 ) — Total current liabilities 70 10,499 1,083 19,646 (16,042 ) 15,256 Long-term debt 495 187 1,853 232 — 2,767 Liability for pension benefits — — — 1,210 — 1,210 Deferred tax liabilities — 2 — 1,232 — 1,234 Provision for liabilities — 120 — 480 — 600 Other non-current liabilities — 40 — 565 — 605 Non-current amounts due to group undertakings — 518 — 1,198 (1,716 ) — Total non-current liabilities 495 867 1,853 4,917 (1,716 ) 6,416 TOTAL LIABILITIES 565 11,366 2,936 24,563 (17,758 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 8,186 9,841 (21,865 ) 11,151 Noncontrolling interests — — — 153 — 153 Total equity 11,151 3,838 8,186 9,994 (21,865 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 15,204 $ 11,122 $ 34,610 $ (39,623 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ — $ 527 $ — $ 532 Fiduciary assets — — — 10,458 — 10,458 Accounts receivable, net — 7 — 1,251 — 1,258 Prepaid and other current assets 1 72 — 194 (12 ) 255 Amounts due from group undertakings 3,423 951 1,538 1,259 (7,171 ) — Total current assets 3,427 1,032 1,538 13,689 (7,183 ) 12,503 Investments in subsidiaries — 4,069 3,092 — (7,161 ) — Fixed assets, net — 58 — 505 — 563 Goodwill — — — 3,737 — 3,737 Other intangible assets, net — — — 1,115 — 1,115 Pension benefits assets — — — 623 — 623 Other non-current assets — 9 1 288 — 298 Non-current amounts due from group undertakings — 785 518 — (1,303 ) — Total non-current assets — 4,921 3,611 6,268 (8,464 ) 6,336 TOTAL ASSETS $ 3,427 $ 5,953 $ 5,149 $ 19,957 $ (15,647 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 68 — 683 — 752 Short-term debt and current portion of long-term debt 300 — 609 79 — 988 Other current liabilities 15 50 16 534 (12 ) 603 Amounts due to group undertakings — 5,234 435 1,502 (7,171 ) — Total current liabilities 316 5,352 1,060 13,256 (7,183 ) 12,801 Investment in subsidiaries 387 — — — (387 ) — Long-term debt 495 580 1,203 — — 2,278 Liability for pension benefits — — — 279 — 279 Deferred tax liabilities — 1 — 239 — 240 Provision for liabilities — — — 295 — 295 Other non-current liabilities — 36 — 497 — 533 Non-current amounts due to group undertakings — 518 — 785 (1,303 ) — Total non-current liabilities 882 1,135 1,203 2,095 (1,690 ) 3,625 TOTAL LIABILITIES 1,198 6,487 2,263 15,351 (8,873 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) 2,886 4,422 (6,774 ) 2,229 Noncontrolling interests — — — 131 — 131 Total equity 2,229 (534 ) 2,886 4,553 (6,774 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 5,953 $ 5,149 $ 19,957 $ (15,647 ) $ 18,839 |
Unaudited Condensed Consolidated Statement of Cash Flows | Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (47 ) $ (191 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (5 ) (4 ) (39 ) — (48 ) Capitalized software costs — — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — — 469 — 469 Redemptions of held-to-maturity investments — — — 11 — 11 Sales and redemptions of available for sale securities — — — 9 — 9 Other, net — — — (6 ) — (6 ) Proceeds from intercompany investing activities — — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (4,227 ) — (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — — (8,200 ) — Additional investment in subsidiaries — (4,600 ) — (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (5,232 ) $ (4 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — (338 ) — — — (338 ) Senior notes issued — 997 — — — 997 Proceeds from issue of other debt — 400 — — — 400 Repayments of debt (300 ) (406 ) — (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,633 195 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — — 9 — Net cash (used in) from financing activities $ (289 ) $ 5,277 $ 195 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) — 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 — 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (20 ) $ 13 $ (47 ) $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (3 ) (1 ) (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — — (8 ) — (8 ) Other, net — — — 17 — 17 Proceeds from intercompany investing activities 51 — 48 — (99 ) — Repayments of intercompany investing activities — (11 ) — (26 ) 37 — Net cash from (used in) investing activities $ 51 $ (14 ) $ 47 $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — — (1 ) — (1 ) Repayments of debt — (4 ) — — — (4 ) Repurchase of shares (15 ) — — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — — 3 — 38 Dividends paid (54 ) — — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — — (3 ) — (3 ) Proceeds from intercompany financing activities — 26 — 11 (37 ) — Repayments of intercompany financing activities — (23 ) — (76 ) 99 — Net cash used in financing activities $ (34 ) $ (1 ) $ — $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) — (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 — 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ — $ 497 $ — $ 503 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (238 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (9 ) (39 ) — (48 ) Capitalized software costs — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — 469 — 469 Redemptions of held-to-maturity investments — — 11 — 11 Sales and redemptions of available for sale securities — — 9 — 9 Other, net — — (6 ) — (6 ) Proceeds from intercompany investing activities — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (4,227 ) (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — (8,200 ) — Additional investment in subsidiaries — (4,600 ) (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (5,236 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — (338 ) — — (338 ) Senior notes issued — 997 — — 997 Proceeds from issue of other debt — 400 — — 400 Repayments of debt (300 ) (406 ) (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,828 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — 9 — Net cash (used in) from financing activities $ (289 ) $ 5,472 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other Consolidating Consolidated NET CASH USED IN OPERATING ACTIVITIES $ (20 ) $ (34 ) $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (4 ) (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — (8 ) — (8 ) Other, net — — 17 — 17 Proceeds from intercompany investing activities 51 48 — (99 ) — Repayments of intercompany investing activities — (11 ) (26 ) 37 — Net cash from (used in) investing activities $ 51 $ 33 $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — (1 ) — (1 ) Repayments of debt — (4 ) — — (4 ) Repurchase of shares (15 ) — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — 3 — 38 Dividends paid (54 ) — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — (3 ) — (3 ) Proceeds from intercompany financing activities — 26 11 (37 ) — Repayments of intercompany financing activities — (23 ) (76 ) 99 — Net cash used in financing activities $ (34 ) $ (1 ) $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ 497 $ — $ 503 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (211 ) $ (27 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (9 ) — (39 ) — (48 ) Capitalized software costs — — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — — 469 — 469 Redemptions of held-to-maturity investments — — — 11 — 11 Sales and redemptions of available for sale securities — — — 9 — 9 Other, net — — — (6 ) — (6 ) Proceeds from intercompany investing activities — — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (3,600 ) (627 ) (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — — (8,200 ) — Additional investment in subsidiaries — (4,600 ) — (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (4,609 ) $ (627 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — — (338 ) — — (338 ) Senior notes issued — — 997 — — 997 Proceeds from issue of other debt — — 400 — — 400 Repayments of debt (300 ) — (406 ) (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,827 1 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — — 9 — Net cash (used in) from financing activities $ (289 ) $ 4,818 $ 654 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) — 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 — 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (20 ) $ (35 ) $ 1 $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (4 ) — (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — — (8 ) — (8 ) Other, net — — — 17 — 17 Proceeds from intercompany investing activities 51 48 — — (99 ) — Repayments of intercompany investing activities — (11 ) — (26 ) 37 — Net cash from (used in) investing activities $ 51 $ 33 $ — $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — — (1 ) — (1 ) Repayments of debt — — (4 ) — — (4 ) Repurchase of shares (15 ) — — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — — 3 — 38 Dividends paid (54 ) — — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — — (3 ) — (3 ) Proceeds from intercompany financing activities — 23 3 11 (37 ) — Repayments of intercompany financing activities — (23 ) — (76 ) 99 — Net cash used in financing activities $ (34 ) $ — $ (1 ) $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) — (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 — 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ — $ 497 $ — $ 503 |
Financial Information for Par39
Financial Information for Parent Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Unaudited Condensed Consolidated Statement of Operations | Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ — $ 4 $ 1,077 $ — $ 1,081 Interest and other income — — — 6 — 6 Total revenues — — 4 1,083 — 1,087 Costs of providing services Salaries and benefits — — (20 ) (547 ) — (567 ) Other operating expenses (9 ) (14 ) (2 ) (135 ) — (160 ) Depreciation — (1 ) (4 ) (17 ) — (22 ) Amortization — — — (14 ) — (14 ) Restructuring costs — (14 ) (5 ) (12 ) — (31 ) Integration expenses — — — — — — Total costs of providing services (9 ) (29 ) (31 ) (725 ) — (794 ) (Loss) Income from operations (9 ) (29 ) (27 ) 358 — 293 Income from Group undertakings — 54 56 25 (135 ) — Expenses due to Group undertakings — (8 ) (44 ) (83 ) 135 — Interest expense (11 ) (9 ) (11 ) (2 ) — (33 ) Other expense, net (12 ) 6 — (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) 14 (26 ) 297 1 254 Provision for income taxes — 6 8 (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) 20 (18 ) 227 1 198 Interest in earnings of associates, net of tax — 2 — 14 — 16 Equity account for subsidiaries 242 215 66 — (523 ) — NET INCOME 210 237 48 241 (522 ) 214 Income attributable to non-controlling interests — — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 48 $ 237 $ (522 ) $ 210 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ — $ 7 $ 2,212 $ — $ 2,219 Interest and other income — — — 15 — 15 Total revenues — — 7 2,227 — 2,234 Costs of providing services Salaries and benefits — — (14 ) (1,182 ) — (1,196 ) Other operating expenses (1 ) (35 ) (58 ) (337 ) — (431 ) Depreciation — (1 ) (4 ) (38 ) — (43 ) Amortization — — — (161 ) — (161 ) Restructuring costs — (4 ) (9 ) (12 ) — (25 ) Integration expenses (1 ) (12 ) (6 ) (33 ) — (52 ) Total costs of providing services (2 ) (52 ) (91 ) (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (52 ) (84 ) 464 — 326 Income from Group undertakings — 121 54 30 (205 ) — Expenses due to Group undertakings — (14 ) (43 ) (148 ) 205 — Interest expense (11 ) (17 ) (10 ) (8 ) — (46 ) Other expense, net (1 ) — — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) 38 (83 ) 321 — 262 Provision for income taxes — 13 28 (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) 51 (55 ) 262 — 244 Interest in earnings of associates, net of tax — — — 1 — 1 Equity account for subsidiaries 252 199 14 — (465 ) — NET INCOME (LOSS) 238 250 (41 ) 263 (465 ) 245 Income attributable to non-controlling interests — — — (7 ) — (7 ) NET INCOME (LOSS) ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ (41 ) $ 256 $ (465 ) $ 238 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 4 $ 1,077 $ — $ 1,081 Interest and other income — — 6 — 6 Total revenues — 4 1,083 — 1,087 Costs of providing services Salaries and benefits — (20 ) (547 ) — (567 ) Other operating expenses (9 ) (16 ) (135 ) — (160 ) Depreciation — (5 ) (17 ) — (22 ) Amortization — — (14 ) — (14 ) Restructuring costs — (19 ) (12 ) — (31 ) Integration expenses — — — — — Total costs of providing services (9 ) (60 ) (725 ) — (794 ) (Loss) Income from operations (9 ) (56 ) 358 — 293 Income from Group undertakings — 83 25 (108 ) — Expenses due to Group undertakings — (25 ) (83 ) 108 — Interest expense (11 ) (20 ) (2 ) — (33 ) Other expense, net (12 ) 6 (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) (12 ) 297 1 254 Provision for income taxes — 14 (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) 2 227 1 198 Interest in earnings of associates, net of tax — 2 14 — 16 Equity account for subsidiaries 242 233 — (475 ) — NET INCOME 210 237 241 (474 ) 214 Income attributable to non-controlling interests — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 237 $ (474 ) $ 210 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 7 $ 2,212 $ — $ 2,219 Interest and other income — — 15 — 15 Total revenues — 7 2,227 — 2,234 Costs of providing services Salaries and benefits — (14 ) (1,182 ) — (1,196 ) Other operating expenses (1 ) (93 ) (337 ) — (431 ) Depreciation — (5 ) (38 ) — (43 ) Amortization — — (161 ) — (161 ) Restructuring costs — (13 ) (12 ) — (25 ) Integration expenses (1 ) (18 ) (33 ) — (52 ) Total costs of providing services (2 ) (143 ) (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (136 ) 464 — 326 Income from Group undertakings — 147 30 (177 ) — Expenses due to Group undertakings — (29 ) (148 ) 177 — Interest expense (11 ) (27 ) (8 ) — (46 ) Other expense, net (1 ) — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) (45 ) 321 — 262 Provision for income taxes — 41 (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) (4 ) 262 — 244 Interest in earnings of associates, net of tax — — 1 — 1 Equity account for subsidiaries 252 254 — (506 ) — NET INCOME 238 250 263 (506 ) 245 Income attributable to non-controlling interests — — (7 ) — (7 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ 256 $ (506 ) $ 238 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 7 $ — $ 2,212 $ — $ 2,219 Interest and other income — — — 15 — 15 Total revenues — 7 — 2,227 — 2,234 Costs of providing services Salaries and benefits — (14 ) — (1,182 ) — (1,196 ) Other operating expenses (1 ) (93 ) — (337 ) — (431 ) Depreciation — (5 ) — (38 ) — (43 ) Amortization — — — (161 ) — (161 ) Restructuring costs — (13 ) — (12 ) — (25 ) Integration expenses (1 ) (18 ) — (33 ) — (52 ) Total costs of providing services (2 ) (143 ) — (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (136 ) — 464 — 326 Income from Group undertakings — 146 31 30 (207 ) — Expenses due to Group undertakings — (52 ) (7 ) (148 ) 207 — Interest expense (11 ) (9 ) (18 ) (8 ) — (46 ) Other expense, net (1 ) — — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) (51 ) 6 321 — 262 Provision for income taxes — 42 (1 ) (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) (9 ) 5 262 — 244 Interest in earnings of associates, net of tax — — — 1 — 1 Equity account for subsidiaries 252 259 174 — (685 ) — NET INCOME 238 250 179 263 (685 ) 245 Income attributable to non-controlling interests — — — (7 ) — (7 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ 179 $ 256 $ (685 ) $ 238 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 4 $ — $ 1,077 $ — $ 1,081 Interest and other income — — — 6 — 6 Total revenues — 4 — 1,083 — 1,087 Costs of providing services Salaries and benefits — (20 ) — (547 ) — (567 ) Other operating expenses (9 ) (16 ) — (135 ) — (160 ) Depreciation — (5 ) — (17 ) — (22 ) Amortization — — — (14 ) — (14 ) Restructuring costs — (19 ) — (12 ) — (31 ) Integration expenses — — — — — — Total costs of providing services (9 ) (60 ) — (725 ) — (794 ) (Loss) Income from operations (9 ) (56 ) — 358 — 293 Income from Group undertakings — 90 22 25 (137 ) — Expenses due to Group undertakings — (47 ) (7 ) (83 ) 137 — Interest expense (11 ) (11 ) (9 ) (2 ) — (33 ) Other expense, net (12 ) 6 — (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) (18 ) 6 297 1 254 Provision for income taxes — 15 (1 ) (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) (3 ) 5 227 1 198 Interest in earnings of associates, net of tax — 2 — 14 — 16 Equity account for subsidiaries 242 238 209 — (689 ) — NET INCOME 210 237 214 241 (688 ) 214 Income attributable to non-controlling interests — — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 214 $ 237 $ (688 ) $ 210 |
Unaudited Condensed Consolidated Statement of Comprehensive Income | Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ (58 ) $ 241 $ (406 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ (58 ) $ 232 $ (406 ) $ 222 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 51 $ 370 $ (778 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 51 $ 373 $ (778 ) $ 324 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ 241 $ (464 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ 232 $ (464 ) $ 222 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 370 $ (727 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 373 $ (727 ) $ 324 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ 161 $ 241 $ (625 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ 161 $ 232 $ (625 ) $ 222 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 347 $ 370 $ (1,074 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 347 $ 373 $ (1,074 ) $ 324 |
Unaudited Condensed Consolidated Balance Sheet | Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ — $ 952 $ — $ 954 Fiduciary assets — — — 12,031 — 12,031 Accounts receivable, net — — 6 2,262 — 2,268 Prepaid and other current assets — 57 22 270 (23 ) 326 Amounts due from group undertakings 7,721 5,644 910 1,765 (16,040 ) — Total current assets 7,723 5,701 938 17,280 (16,063 ) 15,579 Investments in subsidiaries 3,993 8,527 6,002 — (18,522 ) — Fixed assets, net — 27 35 728 — 790 Goodwill — — — 10,477 — 10,477 Other intangible assets, net — — — 5,086 — 5,086 Pension benefits assets — — — 749 — 749 Other non-current assets — 4 54 290 — 348 Non-current amounts due from group undertakings — 918 798 — (1,716 ) — Total non-current assets 3,993 9,476 6,889 17,330 (20,238 ) 17,450 TOTAL ASSETS $ 11,716 $ 15,177 $ 7,827 $ 34,610 $ (36,301 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 21 17 1,070 — 1,109 Short-term debt and current portion of long-term debt — 638 394 112 — 1,144 Other current liabilities 69 46 16 864 (23 ) 972 Amounts due to group undertakings — 8,754 1,717 5,569 (16,040 ) — Total current liabilities 70 9,459 2,144 19,646 (16,063 ) 15,256 Long-term debt 495 1,853 187 232 — 2,767 Liability for pension benefits — — — 1,210 — 1,210 Deferred tax liabilities — 2 — 1,232 — 1,234 Provision for liabilities — — 120 480 — 600 Other non-current liabilities — 25 15 565 — 605 Amounts due to group undertakings — — 518 1,198 (1,716 ) — Total non-current liabilities 495 1,880 840 4,917 (1,716 ) 6,416 TOTAL LIABILITIES 565 11,339 2,984 24,563 (17,779 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 4,843 9,841 (18,522 ) 11,151 Noncontrolling interests — — — 153 — 153 Total equity 11,151 3,838 4,843 9,994 (18,522 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 15,177 $ 7,827 $ 34,610 $ (36,301 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ — $ 527 $ — $ 532 Fiduciary assets — — — 10,458 — 10,458 Accounts receivable, net — — 7 1,251 — 1,258 Prepaid and other current assets 1 49 18 194 (7 ) 255 Amounts due from group undertakings 3,423 1,684 822 1,259 (7,188 ) — Total current assets 3,427 1,735 847 13,689 (7,195 ) 12,503 Investments in subsidiaries — 3,208 832 — (4,040 ) Fixed assets, net — 23 35 505 — 563 Goodwill — — — 3,737 — 3,737 Other intangible assets, net — — — 1,115 — 1,115 Pension benefits assets — — — 623 — 623 Other non-current assets — 8 2 288 — 298 Non-current amounts due from group undertakings — 518 785 — (1,303 ) — Total non-current assets — 3,757 1,654 6,268 (5,343 ) 6,336 TOTAL ASSETS $ 3,427 $ 5,492 $ 2,501 $ 19,957 $ (12,538 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 13 55 683 — 752 Short-term debt and current portion of long-term debt 300 609 — 79 — 988 Other current liabilities 15 38 23 534 (7 ) 603 Amounts due to group undertakings — 4,141 1,545 1,502 (7,188 ) — Total current liabilities 316 4,801 1,623 13,256 (7,195 ) 12,801 Long-term debt 495 1,203 580 — — 2,278 Liability for pension benefits — — — 279 — 279 Deferred tax liabilities — 1 — 239 — 240 Provision for liabilities — — — 295 — 295 Investments in subsidiaries 387 — — — (387 ) — Other non-current liabilities — 21 15 497 — 533 Non-current amounts due to group undertakings — — 518 785 (1,303 ) — Total non-current liabilities 882 1,225 1,113 2,095 (1,690 ) 3,625 TOTAL LIABILITIES 1,198 6,026 2,736 15,351 (8,885 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) (235 ) 4,422 (3,653 ) 2,229 Noncontrolling interests — — — 131 — 131 Total equity 2,229 (534 ) (235 ) 4,553 (3,653 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 5,492 $ 2,501 $ 19,957 $ (12,538 ) $ 18,839 Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ 952 $ — $ 954 Fiduciary assets — — 12,031 — 12,031 Accounts receivable, net — 6 2,262 — 2,268 Prepaid and other current assets — 79 270 (23 ) 326 Amounts due from group undertakings 7,721 5,294 1,765 (14,780 ) — Total current assets 7,723 5,379 17,280 (14,803 ) 15,579 Investments in subsidiaries 3,993 9,686 — (13,679 ) — Fixed assets, net — 62 728 — 790 Goodwill — — 10,477 — 10,477 Other intangible assets, net — — 5,086 — 5,086 Pension benefits assets — — 749 — 749 Other non-current assets — 58 290 — 348 Non-current amounts due from group undertakings — 1,198 — (1,198 ) — Total non-current assets 3,993 11,004 17,330 (14,877 ) 17,450 TOTAL ASSETS $ 11,716 $ 16,383 $ 34,610 $ (29,680 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 38 1,070 — 1,109 Short-term debt and current portion of long-term debt — 1,032 112 — 1,144 Other current liabilities 69 62 864 (23 ) 972 Amounts due to group undertakings — 9,211 5,569 (14,780 ) — Total current liabilities 70 10,343 19,646 (14,803 ) 15,256 Long-term debt 495 2,040 232 — 2,767 Liability for pension benefits — — 1,210 — 1,210 Deferred tax liabilities — 2 1,232 — 1,234 Provision for liabilities — 120 480 — 600 Other non-current liabilities — 40 565 — 605 Non-current amounts due to group undertakings — — 1,198 (1,198 ) — Total non-current liabilities 495 2,202 4,917 (1,198 ) 6,416 TOTAL LIABILITIES 565 12,545 24,563 (16,001 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 9,841 (13,679 ) 11,151 Noncontrolling interests — — 153 — 153 Total equity 11,151 3,838 9,994 (13,679 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 16,383 $ 34,610 $ (29,680 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ 527 $ — $ 532 Fiduciary assets — — 10,458 — 10,458 Accounts receivable, net — 7 1,251 — 1,258 Prepaid and other current assets 1 67 194 (7 ) 255 Amounts due from group undertakings 3,423 1,257 1,259 (5,939 ) — Total current assets 3,427 1,333 13,689 (5,946 ) 12,503 Investments in subsidiaries — 4,275 — (4,275 ) — Fixed assets, net — 58 505 — 563 Goodwill — — 3,737 — 3,737 Other intangible assets, net — — 1,115 — 1,115 Pension benefits assets — — 623 — 623 Other non-current assets — 10 288 — 298 Non-current amounts due from group undertakings — 785 — (785 ) — Total non-current assets — 5,128 6,268 (5,060 ) 6,336 TOTAL ASSETS $ 3,427 $ 6,461 $ 19,957 $ (11,006 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 68 683 — 752 Short-term debt and current portion of long-term debt 300 609 79 — 988 Other current liabilities 15 61 534 (7 ) 603 Amounts due to group undertakings — 4,437 1,502 (5,939 ) — Total current liabilities 316 5,175 13,256 (5,946 ) 12,801 Investments in subsidiaries 387 — — (387 ) — Long-term debt 495 1,783 — — 2,278 Liability for pension benefits — — 279 — 279 Deferred tax liabilities — 1 239 — 240 Provision for liabilities — — 295 — 295 Other non-current liabilities — 36 497 — 533 Non-current amounts due to group undertakings — — 785 (785 ) — Total non-current liabilities 882 1,820 2,095 (1,172 ) 3,625 TOTAL LIABILITIES 1,198 6,995 15,351 (7,118 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) 4,422 (3,888 ) 2,229 Noncontrolling interests — — 131 — 131 Total equity 2,229 (534 ) 4,553 (3,888 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 6,461 $ 19,957 $ (11,006 ) $ 18,839 Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ — $ 952 $ — $ 954 Fiduciary assets — — — 12,031 — 12,031 Accounts receivable, net — 6 — 2,262 — 2,268 Prepaid and other current assets — 85 1 270 (30 ) 326 Amounts due from group undertakings 7,721 4,709 1,817 1,765 (16,012 ) — Total current assets 7,723 4,800 1,818 17,280 (16,042 ) 15,579 Investments in subsidiaries 3,993 9,486 8,386 — (21,865 ) — Fixed assets, net — 62 — 728 — 790 Goodwill — — — 10,477 — 10,477 Other intangible assets, net — — — 5,086 — 5,086 Pension benefits assets — — — 749 — 749 Other non-current assets — 58 — 290 — 348 Non-current amounts due from group undertakings — 798 918 — (1,716 ) — Total non-current assets 3,993 10,404 9,304 17,330 (23,581 ) 17,450 TOTAL ASSETS $ 11,716 $ 15,204 $ 11,122 $ 34,610 $ (39,623 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 35 3 1,070 — 1,109 Short-term debt and current portion of long-term debt — 394 638 112 — 1,144 Other current liabilities 69 57 12 864 (30 ) 972 Amounts due to group undertakings — 10,013 430 5,569 (16,012 ) — Total current liabilities 70 10,499 1,083 19,646 (16,042 ) 15,256 Long-term debt 495 187 1,853 232 — 2,767 Liability for pension benefits — — — 1,210 — 1,210 Deferred tax liabilities — 2 — 1,232 — 1,234 Provision for liabilities — 120 — 480 — 600 Other non-current liabilities — 40 — 565 — 605 Non-current amounts due to group undertakings — 518 — 1,198 (1,716 ) — Total non-current liabilities 495 867 1,853 4,917 (1,716 ) 6,416 TOTAL LIABILITIES 565 11,366 2,936 24,563 (17,758 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 8,186 9,841 (21,865 ) 11,151 Noncontrolling interests — — — 153 — 153 Total equity 11,151 3,838 8,186 9,994 (21,865 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 15,204 $ 11,122 $ 34,610 $ (39,623 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ — $ 527 $ — $ 532 Fiduciary assets — — — 10,458 — 10,458 Accounts receivable, net — 7 — 1,251 — 1,258 Prepaid and other current assets 1 72 — 194 (12 ) 255 Amounts due from group undertakings 3,423 951 1,538 1,259 (7,171 ) — Total current assets 3,427 1,032 1,538 13,689 (7,183 ) 12,503 Investments in subsidiaries — 4,069 3,092 — (7,161 ) — Fixed assets, net — 58 — 505 — 563 Goodwill — — — 3,737 — 3,737 Other intangible assets, net — — — 1,115 — 1,115 Pension benefits assets — — — 623 — 623 Other non-current assets — 9 1 288 — 298 Non-current amounts due from group undertakings — 785 518 — (1,303 ) — Total non-current assets — 4,921 3,611 6,268 (8,464 ) 6,336 TOTAL ASSETS $ 3,427 $ 5,953 $ 5,149 $ 19,957 $ (15,647 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 68 — 683 — 752 Short-term debt and current portion of long-term debt 300 — 609 79 — 988 Other current liabilities 15 50 16 534 (12 ) 603 Amounts due to group undertakings — 5,234 435 1,502 (7,171 ) — Total current liabilities 316 5,352 1,060 13,256 (7,183 ) 12,801 Investment in subsidiaries 387 — — — (387 ) — Long-term debt 495 580 1,203 — — 2,278 Liability for pension benefits — — — 279 — 279 Deferred tax liabilities — 1 — 239 — 240 Provision for liabilities — — — 295 — 295 Other non-current liabilities — 36 — 497 — 533 Non-current amounts due to group undertakings — 518 — 785 (1,303 ) — Total non-current liabilities 882 1,135 1,203 2,095 (1,690 ) 3,625 TOTAL LIABILITIES 1,198 6,487 2,263 15,351 (8,873 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) 2,886 4,422 (6,774 ) 2,229 Noncontrolling interests — — — 131 — 131 Total equity 2,229 (534 ) 2,886 4,553 (6,774 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 5,953 $ 5,149 $ 19,957 $ (15,647 ) $ 18,839 |
Unaudited Condensed Consolidated Statement of Cash Flows | Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (47 ) $ (191 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (5 ) (4 ) (39 ) — (48 ) Capitalized software costs — — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — — 469 — 469 Redemptions of held-to-maturity investments — — — 11 — 11 Sales and redemptions of available for sale securities — — — 9 — 9 Other, net — — — (6 ) — (6 ) Proceeds from intercompany investing activities — — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (4,227 ) — (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — — (8,200 ) — Additional investment in subsidiaries — (4,600 ) — (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (5,232 ) $ (4 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — (338 ) — — — (338 ) Senior notes issued — 997 — — — 997 Proceeds from issue of other debt — 400 — — — 400 Repayments of debt (300 ) (406 ) — (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,633 195 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — — 9 — Net cash (used in) from financing activities $ (289 ) $ 5,277 $ 195 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) — 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 — 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (20 ) $ 13 $ (47 ) $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (3 ) (1 ) (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — — (8 ) — (8 ) Other, net — — — 17 — 17 Proceeds from intercompany investing activities 51 — 48 — (99 ) — Repayments of intercompany investing activities — (11 ) — (26 ) 37 — Net cash from (used in) investing activities $ 51 $ (14 ) $ 47 $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — — (1 ) — (1 ) Repayments of debt — (4 ) — — — (4 ) Repurchase of shares (15 ) — — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — — 3 — 38 Dividends paid (54 ) — — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — — (3 ) — (3 ) Proceeds from intercompany financing activities — 26 — 11 (37 ) — Repayments of intercompany financing activities — (23 ) — (76 ) 99 — Net cash used in financing activities $ (34 ) $ (1 ) $ — $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) — (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 — 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ — $ 497 $ — $ 503 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (238 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (9 ) (39 ) — (48 ) Capitalized software costs — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — 469 — 469 Redemptions of held-to-maturity investments — — 11 — 11 Sales and redemptions of available for sale securities — — 9 — 9 Other, net — — (6 ) — (6 ) Proceeds from intercompany investing activities — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (4,227 ) (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — (8,200 ) — Additional investment in subsidiaries — (4,600 ) (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (5,236 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — (338 ) — — (338 ) Senior notes issued — 997 — — 997 Proceeds from issue of other debt — 400 — — 400 Repayments of debt (300 ) (406 ) (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,828 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — 9 — Net cash (used in) from financing activities $ (289 ) $ 5,472 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other Consolidating Consolidated NET CASH USED IN OPERATING ACTIVITIES $ (20 ) $ (34 ) $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (4 ) (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — (8 ) — (8 ) Other, net — — 17 — 17 Proceeds from intercompany investing activities 51 48 — (99 ) — Repayments of intercompany investing activities — (11 ) (26 ) 37 — Net cash from (used in) investing activities $ 51 $ 33 $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — (1 ) — (1 ) Repayments of debt — (4 ) — — (4 ) Repurchase of shares (15 ) — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — 3 — 38 Dividends paid (54 ) — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — (3 ) — (3 ) Proceeds from intercompany financing activities — 26 11 (37 ) — Repayments of intercompany financing activities — (23 ) (76 ) 99 — Net cash used in financing activities $ (34 ) $ (1 ) $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ 497 $ — $ 503 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (211 ) $ (27 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (9 ) — (39 ) — (48 ) Capitalized software costs — — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — — 469 — 469 Redemptions of held-to-maturity investments — — — 11 — 11 Sales and redemptions of available for sale securities — — — 9 — 9 Other, net — — — (6 ) — (6 ) Proceeds from intercompany investing activities — — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (3,600 ) (627 ) (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — — (8,200 ) — Additional investment in subsidiaries — (4,600 ) — (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (4,609 ) $ (627 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — — (338 ) — — (338 ) Senior notes issued — — 997 — — 997 Proceeds from issue of other debt — — 400 — — 400 Repayments of debt (300 ) — (406 ) (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,827 1 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — — 9 — Net cash (used in) from financing activities $ (289 ) $ 4,818 $ 654 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) — 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 — 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (20 ) $ (35 ) $ 1 $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (4 ) — (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — — (8 ) — (8 ) Other, net — — — 17 — 17 Proceeds from intercompany investing activities 51 48 — — (99 ) — Repayments of intercompany investing activities — (11 ) — (26 ) 37 — Net cash from (used in) investing activities $ 51 $ 33 $ — $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — — (1 ) — (1 ) Repayments of debt — — (4 ) — — (4 ) Repurchase of shares (15 ) — — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — — 3 — 38 Dividends paid (54 ) — — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — — (3 ) — (3 ) Proceeds from intercompany financing activities — 23 3 11 (37 ) — Repayments of intercompany financing activities — (23 ) — (76 ) 99 — Net cash used in financing activities $ (34 ) $ — $ (1 ) $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) — (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 — 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ — $ 497 $ — $ 503 |
Financial Information for Iss40
Financial Information for Issuer, Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Unaudited Condensed Consolidated Statement of Operations | Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ — $ 4 $ 1,077 $ — $ 1,081 Interest and other income — — — 6 — 6 Total revenues — — 4 1,083 — 1,087 Costs of providing services Salaries and benefits — — (20 ) (547 ) — (567 ) Other operating expenses (9 ) (14 ) (2 ) (135 ) — (160 ) Depreciation — (1 ) (4 ) (17 ) — (22 ) Amortization — — — (14 ) — (14 ) Restructuring costs — (14 ) (5 ) (12 ) — (31 ) Integration expenses — — — — — — Total costs of providing services (9 ) (29 ) (31 ) (725 ) — (794 ) (Loss) Income from operations (9 ) (29 ) (27 ) 358 — 293 Income from Group undertakings — 54 56 25 (135 ) — Expenses due to Group undertakings — (8 ) (44 ) (83 ) 135 — Interest expense (11 ) (9 ) (11 ) (2 ) — (33 ) Other expense, net (12 ) 6 — (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) 14 (26 ) 297 1 254 Provision for income taxes — 6 8 (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) 20 (18 ) 227 1 198 Interest in earnings of associates, net of tax — 2 — 14 — 16 Equity account for subsidiaries 242 215 66 — (523 ) — NET INCOME 210 237 48 241 (522 ) 214 Income attributable to non-controlling interests — — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 48 $ 237 $ (522 ) $ 210 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ — $ 7 $ 2,212 $ — $ 2,219 Interest and other income — — — 15 — 15 Total revenues — — 7 2,227 — 2,234 Costs of providing services Salaries and benefits — — (14 ) (1,182 ) — (1,196 ) Other operating expenses (1 ) (35 ) (58 ) (337 ) — (431 ) Depreciation — (1 ) (4 ) (38 ) — (43 ) Amortization — — — (161 ) — (161 ) Restructuring costs — (4 ) (9 ) (12 ) — (25 ) Integration expenses (1 ) (12 ) (6 ) (33 ) — (52 ) Total costs of providing services (2 ) (52 ) (91 ) (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (52 ) (84 ) 464 — 326 Income from Group undertakings — 121 54 30 (205 ) — Expenses due to Group undertakings — (14 ) (43 ) (148 ) 205 — Interest expense (11 ) (17 ) (10 ) (8 ) — (46 ) Other expense, net (1 ) — — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) 38 (83 ) 321 — 262 Provision for income taxes — 13 28 (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) 51 (55 ) 262 — 244 Interest in earnings of associates, net of tax — — — 1 — 1 Equity account for subsidiaries 252 199 14 — (465 ) — NET INCOME (LOSS) 238 250 (41 ) 263 (465 ) 245 Income attributable to non-controlling interests — — — (7 ) — (7 ) NET INCOME (LOSS) ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ (41 ) $ 256 $ (465 ) $ 238 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 4 $ 1,077 $ — $ 1,081 Interest and other income — — 6 — 6 Total revenues — 4 1,083 — 1,087 Costs of providing services Salaries and benefits — (20 ) (547 ) — (567 ) Other operating expenses (9 ) (16 ) (135 ) — (160 ) Depreciation — (5 ) (17 ) — (22 ) Amortization — — (14 ) — (14 ) Restructuring costs — (19 ) (12 ) — (31 ) Integration expenses — — — — — Total costs of providing services (9 ) (60 ) (725 ) — (794 ) (Loss) Income from operations (9 ) (56 ) 358 — 293 Income from Group undertakings — 83 25 (108 ) — Expenses due to Group undertakings — (25 ) (83 ) 108 — Interest expense (11 ) (20 ) (2 ) — (33 ) Other expense, net (12 ) 6 (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) (12 ) 297 1 254 Provision for income taxes — 14 (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) 2 227 1 198 Interest in earnings of associates, net of tax — 2 14 — 16 Equity account for subsidiaries 242 233 — (475 ) — NET INCOME 210 237 241 (474 ) 214 Income attributable to non-controlling interests — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 237 $ (474 ) $ 210 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 7 $ 2,212 $ — $ 2,219 Interest and other income — — 15 — 15 Total revenues — 7 2,227 — 2,234 Costs of providing services Salaries and benefits — (14 ) (1,182 ) — (1,196 ) Other operating expenses (1 ) (93 ) (337 ) — (431 ) Depreciation — (5 ) (38 ) — (43 ) Amortization — — (161 ) — (161 ) Restructuring costs — (13 ) (12 ) — (25 ) Integration expenses (1 ) (18 ) (33 ) — (52 ) Total costs of providing services (2 ) (143 ) (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (136 ) 464 — 326 Income from Group undertakings — 147 30 (177 ) — Expenses due to Group undertakings — (29 ) (148 ) 177 — Interest expense (11 ) (27 ) (8 ) — (46 ) Other expense, net (1 ) — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) (45 ) 321 — 262 Provision for income taxes — 41 (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) (4 ) 262 — 244 Interest in earnings of associates, net of tax — — 1 — 1 Equity account for subsidiaries 252 254 — (506 ) — NET INCOME 238 250 263 (506 ) 245 Income attributable to non-controlling interests — — (7 ) — (7 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ 256 $ (506 ) $ 238 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 7 $ — $ 2,212 $ — $ 2,219 Interest and other income — — — 15 — 15 Total revenues — 7 — 2,227 — 2,234 Costs of providing services Salaries and benefits — (14 ) — (1,182 ) — (1,196 ) Other operating expenses (1 ) (93 ) — (337 ) — (431 ) Depreciation — (5 ) — (38 ) — (43 ) Amortization — — — (161 ) — (161 ) Restructuring costs — (13 ) — (12 ) — (25 ) Integration expenses (1 ) (18 ) — (33 ) — (52 ) Total costs of providing services (2 ) (143 ) — (1,763 ) — (1,908 ) (Loss) Income from operations (2 ) (136 ) — 464 — 326 Income from Group undertakings — 146 31 30 (207 ) — Expenses due to Group undertakings — (52 ) (7 ) (148 ) 207 — Interest expense (11 ) (9 ) (18 ) (8 ) — (46 ) Other expense, net (1 ) — — (17 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (14 ) (51 ) 6 321 — 262 Provision for income taxes — 42 (1 ) (59 ) — (18 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (14 ) (9 ) 5 262 — 244 Interest in earnings of associates, net of tax — — — 1 — 1 Equity account for subsidiaries 252 259 174 — (685 ) — NET INCOME 238 250 179 263 (685 ) 245 Income attributable to non-controlling interests — — — (7 ) — (7 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 238 $ 250 $ 179 $ 256 $ (685 ) $ 238 Unaudited Condensed Consolidated Statement of Operations Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated Revenues Commissions, fees and consulting revenue $ — $ 4 $ — $ 1,077 $ — $ 1,081 Interest and other income — — — 6 — 6 Total revenues — 4 — 1,083 — 1,087 Costs of providing services Salaries and benefits — (20 ) — (547 ) — (567 ) Other operating expenses (9 ) (16 ) — (135 ) — (160 ) Depreciation — (5 ) — (17 ) — (22 ) Amortization — — — (14 ) — (14 ) Restructuring costs — (19 ) — (12 ) — (31 ) Integration expenses — — — — — — Total costs of providing services (9 ) (60 ) — (725 ) — (794 ) (Loss) Income from operations (9 ) (56 ) — 358 — 293 Income from Group undertakings — 90 22 25 (137 ) — Expenses due to Group undertakings — (47 ) (7 ) (83 ) 137 — Interest expense (11 ) (11 ) (9 ) (2 ) — (33 ) Other expense, net (12 ) 6 — (1 ) 1 (6 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES (32 ) (18 ) 6 297 1 254 Provision for income taxes — 15 (1 ) (70 ) — (56 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES (32 ) (3 ) 5 227 1 198 Interest in earnings of associates, net of tax — 2 — 14 — 16 Equity account for subsidiaries 242 238 209 — (689 ) — NET INCOME 210 237 214 241 (688 ) 214 Income attributable to non-controlling interests — — — (4 ) — (4 ) NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON $ 210 $ 237 $ 214 $ 237 $ (688 ) $ 210 |
Unaudited Condensed Consolidated Statement of Comprehensive Income | Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ (58 ) $ 241 $ (406 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ (58 ) $ 232 $ (406 ) $ 222 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 51 $ 370 $ (778 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 51 $ 373 $ (778 ) $ 324 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ 241 $ (464 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ 232 $ (464 ) $ 222 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 370 $ (727 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 373 $ (727 ) $ 324 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2016 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 222 $ 232 $ 161 $ 241 $ (625 ) $ 231 Comprehensive income/(loss) attributable to non-controlling interest — — — (9 ) — (9 ) Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 222 $ 232 $ 161 $ 232 $ (625 ) $ 222 Unaudited Condensed Consolidated Statement of Comprehensive Income Three Months Ended March 31, 2015 Willis Towers Watson The Other Guarantors The Issuer Other Consolidating adjustments Consolidated Comprehensive income/(loss) before non-controlling interests $ 324 $ 354 $ 347 $ 370 $ (1,074 ) $ 321 Comprehensive income/(loss) attributable to non-controlling interest — — — 3 — 3 Comprehensive income/(loss) (attributable to Willis Towers Watson) $ 324 $ 354 $ 347 $ 373 $ (1,074 ) $ 324 |
Unaudited Condensed Consolidated Balance Sheet | Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ — $ 952 $ — $ 954 Fiduciary assets — — — 12,031 — 12,031 Accounts receivable, net — — 6 2,262 — 2,268 Prepaid and other current assets — 57 22 270 (23 ) 326 Amounts due from group undertakings 7,721 5,644 910 1,765 (16,040 ) — Total current assets 7,723 5,701 938 17,280 (16,063 ) 15,579 Investments in subsidiaries 3,993 8,527 6,002 — (18,522 ) — Fixed assets, net — 27 35 728 — 790 Goodwill — — — 10,477 — 10,477 Other intangible assets, net — — — 5,086 — 5,086 Pension benefits assets — — — 749 — 749 Other non-current assets — 4 54 290 — 348 Non-current amounts due from group undertakings — 918 798 — (1,716 ) — Total non-current assets 3,993 9,476 6,889 17,330 (20,238 ) 17,450 TOTAL ASSETS $ 11,716 $ 15,177 $ 7,827 $ 34,610 $ (36,301 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 21 17 1,070 — 1,109 Short-term debt and current portion of long-term debt — 638 394 112 — 1,144 Other current liabilities 69 46 16 864 (23 ) 972 Amounts due to group undertakings — 8,754 1,717 5,569 (16,040 ) — Total current liabilities 70 9,459 2,144 19,646 (16,063 ) 15,256 Long-term debt 495 1,853 187 232 — 2,767 Liability for pension benefits — — — 1,210 — 1,210 Deferred tax liabilities — 2 — 1,232 — 1,234 Provision for liabilities — — 120 480 — 600 Other non-current liabilities — 25 15 565 — 605 Amounts due to group undertakings — — 518 1,198 (1,716 ) — Total non-current liabilities 495 1,880 840 4,917 (1,716 ) 6,416 TOTAL LIABILITIES 565 11,339 2,984 24,563 (17,779 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 4,843 9,841 (18,522 ) 11,151 Noncontrolling interests — — — 153 — 153 Total equity 11,151 3,838 4,843 9,994 (18,522 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 15,177 $ 7,827 $ 34,610 $ (36,301 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ — $ 527 $ — $ 532 Fiduciary assets — — — 10,458 — 10,458 Accounts receivable, net — — 7 1,251 — 1,258 Prepaid and other current assets 1 49 18 194 (7 ) 255 Amounts due from group undertakings 3,423 1,684 822 1,259 (7,188 ) — Total current assets 3,427 1,735 847 13,689 (7,195 ) 12,503 Investments in subsidiaries — 3,208 832 — (4,040 ) Fixed assets, net — 23 35 505 — 563 Goodwill — — — 3,737 — 3,737 Other intangible assets, net — — — 1,115 — 1,115 Pension benefits assets — — — 623 — 623 Other non-current assets — 8 2 288 — 298 Non-current amounts due from group undertakings — 518 785 — (1,303 ) — Total non-current assets — 3,757 1,654 6,268 (5,343 ) 6,336 TOTAL ASSETS $ 3,427 $ 5,492 $ 2,501 $ 19,957 $ (12,538 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 13 55 683 — 752 Short-term debt and current portion of long-term debt 300 609 — 79 — 988 Other current liabilities 15 38 23 534 (7 ) 603 Amounts due to group undertakings — 4,141 1,545 1,502 (7,188 ) — Total current liabilities 316 4,801 1,623 13,256 (7,195 ) 12,801 Long-term debt 495 1,203 580 — — 2,278 Liability for pension benefits — — — 279 — 279 Deferred tax liabilities — 1 — 239 — 240 Provision for liabilities — — — 295 — 295 Investments in subsidiaries 387 — — — (387 ) — Other non-current liabilities — 21 15 497 — 533 Non-current amounts due to group undertakings — — 518 785 (1,303 ) — Total non-current liabilities 882 1,225 1,113 2,095 (1,690 ) 3,625 TOTAL LIABILITIES 1,198 6,026 2,736 15,351 (8,885 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) (235 ) 4,422 (3,653 ) 2,229 Noncontrolling interests — — — 131 — 131 Total equity 2,229 (534 ) (235 ) 4,553 (3,653 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 5,492 $ 2,501 $ 19,957 $ (12,538 ) $ 18,839 Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ 952 $ — $ 954 Fiduciary assets — — 12,031 — 12,031 Accounts receivable, net — 6 2,262 — 2,268 Prepaid and other current assets — 79 270 (23 ) 326 Amounts due from group undertakings 7,721 5,294 1,765 (14,780 ) — Total current assets 7,723 5,379 17,280 (14,803 ) 15,579 Investments in subsidiaries 3,993 9,686 — (13,679 ) — Fixed assets, net — 62 728 — 790 Goodwill — — 10,477 — 10,477 Other intangible assets, net — — 5,086 — 5,086 Pension benefits assets — — 749 — 749 Other non-current assets — 58 290 — 348 Non-current amounts due from group undertakings — 1,198 — (1,198 ) — Total non-current assets 3,993 11,004 17,330 (14,877 ) 17,450 TOTAL ASSETS $ 11,716 $ 16,383 $ 34,610 $ (29,680 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 38 1,070 — 1,109 Short-term debt and current portion of long-term debt — 1,032 112 — 1,144 Other current liabilities 69 62 864 (23 ) 972 Amounts due to group undertakings — 9,211 5,569 (14,780 ) — Total current liabilities 70 10,343 19,646 (14,803 ) 15,256 Long-term debt 495 2,040 232 — 2,767 Liability for pension benefits — — 1,210 — 1,210 Deferred tax liabilities — 2 1,232 — 1,234 Provision for liabilities — 120 480 — 600 Other non-current liabilities — 40 565 — 605 Non-current amounts due to group undertakings — — 1,198 (1,198 ) — Total non-current liabilities 495 2,202 4,917 (1,198 ) 6,416 TOTAL LIABILITIES 565 12,545 24,563 (16,001 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 9,841 (13,679 ) 11,151 Noncontrolling interests — — 153 — 153 Total equity 11,151 3,838 9,994 (13,679 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 16,383 $ 34,610 $ (29,680 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis Towers Watson — the Parent Issuer The Guarantors Other Consolidating adjustments Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ 527 $ — $ 532 Fiduciary assets — — 10,458 — 10,458 Accounts receivable, net — 7 1,251 — 1,258 Prepaid and other current assets 1 67 194 (7 ) 255 Amounts due from group undertakings 3,423 1,257 1,259 (5,939 ) — Total current assets 3,427 1,333 13,689 (5,946 ) 12,503 Investments in subsidiaries — 4,275 — (4,275 ) — Fixed assets, net — 58 505 — 563 Goodwill — — 3,737 — 3,737 Other intangible assets, net — — 1,115 — 1,115 Pension benefits assets — — 623 — 623 Other non-current assets — 10 288 — 298 Non-current amounts due from group undertakings — 785 — (785 ) — Total non-current assets — 5,128 6,268 (5,060 ) 6,336 TOTAL ASSETS $ 3,427 $ 6,461 $ 19,957 $ (11,006 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 68 683 — 752 Short-term debt and current portion of long-term debt 300 609 79 — 988 Other current liabilities 15 61 534 (7 ) 603 Amounts due to group undertakings — 4,437 1,502 (5,939 ) — Total current liabilities 316 5,175 13,256 (5,946 ) 12,801 Investments in subsidiaries 387 — — (387 ) — Long-term debt 495 1,783 — — 2,278 Liability for pension benefits — — 279 — 279 Deferred tax liabilities — 1 239 — 240 Provision for liabilities — — 295 — 295 Other non-current liabilities — 36 497 — 533 Non-current amounts due to group undertakings — — 785 (785 ) — Total non-current liabilities 882 1,820 2,095 (1,172 ) 3,625 TOTAL LIABILITIES 1,198 6,995 15,351 (7,118 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) 4,422 (3,888 ) 2,229 Noncontrolling interests — — 131 — 131 Total equity 2,229 (534 ) 4,553 (3,888 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 6,461 $ 19,957 $ (11,006 ) $ 18,839 Unaudited Condensed Consolidated Balance Sheet As of March 31, 2016 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 2 $ — $ — $ 952 $ — $ 954 Fiduciary assets — — — 12,031 — 12,031 Accounts receivable, net — 6 — 2,262 — 2,268 Prepaid and other current assets — 85 1 270 (30 ) 326 Amounts due from group undertakings 7,721 4,709 1,817 1,765 (16,012 ) — Total current assets 7,723 4,800 1,818 17,280 (16,042 ) 15,579 Investments in subsidiaries 3,993 9,486 8,386 — (21,865 ) — Fixed assets, net — 62 — 728 — 790 Goodwill — — — 10,477 — 10,477 Other intangible assets, net — — — 5,086 — 5,086 Pension benefits assets — — — 749 — 749 Other non-current assets — 58 — 290 — 348 Non-current amounts due from group undertakings — 798 918 — (1,716 ) — Total non-current assets 3,993 10,404 9,304 17,330 (23,581 ) 17,450 TOTAL ASSETS $ 11,716 $ 15,204 $ 11,122 $ 34,610 $ (39,623 ) $ 33,029 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 12,031 $ — $ 12,031 Deferred revenue and accrued expenses 1 35 3 1,070 — 1,109 Short-term debt and current portion of long-term debt — 394 638 112 — 1,144 Other current liabilities 69 57 12 864 (30 ) 972 Amounts due to group undertakings — 10,013 430 5,569 (16,012 ) — Total current liabilities 70 10,499 1,083 19,646 (16,042 ) 15,256 Long-term debt 495 187 1,853 232 — 2,767 Liability for pension benefits — — — 1,210 — 1,210 Deferred tax liabilities — 2 — 1,232 — 1,234 Provision for liabilities — 120 — 480 — 600 Other non-current liabilities — 40 — 565 — 605 Non-current amounts due to group undertakings — 518 — 1,198 (1,716 ) — Total non-current liabilities 495 867 1,853 4,917 (1,716 ) 6,416 TOTAL LIABILITIES 565 11,366 2,936 24,563 (17,758 ) 21,672 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 11,151 3,838 8,186 9,841 (21,865 ) 11,151 Noncontrolling interests — — — 153 — 153 Total equity 11,151 3,838 8,186 9,994 (21,865 ) 11,304 TOTAL LIABILITIES AND EQUITY $ 11,716 $ 15,204 $ 11,122 $ 34,610 $ (39,623 ) $ 33,029 Unaudited Condensed Consolidated Balance Sheet As of December 31, 2015 Willis The Other The Other Consolidating Consolidated ASSETS Cash and cash equivalents $ 3 $ 2 $ — $ 527 $ — $ 532 Fiduciary assets — — — 10,458 — 10,458 Accounts receivable, net — 7 — 1,251 — 1,258 Prepaid and other current assets 1 72 — 194 (12 ) 255 Amounts due from group undertakings 3,423 951 1,538 1,259 (7,171 ) — Total current assets 3,427 1,032 1,538 13,689 (7,183 ) 12,503 Investments in subsidiaries — 4,069 3,092 — (7,161 ) — Fixed assets, net — 58 — 505 — 563 Goodwill — — — 3,737 — 3,737 Other intangible assets, net — — — 1,115 — 1,115 Pension benefits assets — — — 623 — 623 Other non-current assets — 9 1 288 — 298 Non-current amounts due from group undertakings — 785 518 — (1,303 ) — Total non-current assets — 4,921 3,611 6,268 (8,464 ) 6,336 TOTAL ASSETS $ 3,427 $ 5,953 $ 5,149 $ 19,957 $ (15,647 ) $ 18,839 LIABILITIES AND EQUITY Fiduciary liabilities $ — $ — $ — $ 10,458 $ — $ 10,458 Deferred revenue and accrued expenses 1 68 — 683 — 752 Short-term debt and current portion of long-term debt 300 — 609 79 — 988 Other current liabilities 15 50 16 534 (12 ) 603 Amounts due to group undertakings — 5,234 435 1,502 (7,171 ) — Total current liabilities 316 5,352 1,060 13,256 (7,183 ) 12,801 Investment in subsidiaries 387 — — — (387 ) — Long-term debt 495 580 1,203 — — 2,278 Liability for pension benefits — — — 279 — 279 Deferred tax liabilities — 1 — 239 — 240 Provision for liabilities — — — 295 — 295 Other non-current liabilities — 36 — 497 — 533 Non-current amounts due to group undertakings — 518 — 785 (1,303 ) — Total non-current liabilities 882 1,135 1,203 2,095 (1,690 ) 3,625 TOTAL LIABILITIES 1,198 6,487 2,263 15,351 (8,873 ) 16,426 REDEEMABLE NONCONTROLLING INTEREST — — — 53 — 53 EQUITY Total Willis Towers Watson shareholders’ equity 2,229 (534 ) 2,886 4,422 (6,774 ) 2,229 Noncontrolling interests — — — 131 — 131 Total equity 2,229 (534 ) 2,886 4,553 (6,774 ) 2,360 TOTAL LIABILITIES AND EQUITY $ 3,427 $ 5,953 $ 5,149 $ 19,957 $ (15,647 ) $ 18,839 |
Unaudited Condensed Consolidated Statement of Cash Flows | Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (47 ) $ (191 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (5 ) (4 ) (39 ) — (48 ) Capitalized software costs — — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — — 469 — 469 Redemptions of held-to-maturity investments — — — 11 — 11 Sales and redemptions of available for sale securities — — — 9 — 9 Other, net — — — (6 ) — (6 ) Proceeds from intercompany investing activities — — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (4,227 ) — (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — — (8,200 ) — Additional investment in subsidiaries — (4,600 ) — (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (5,232 ) $ (4 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — (338 ) — — — (338 ) Senior notes issued — 997 — — — 997 Proceeds from issue of other debt — 400 — — — 400 Repayments of debt (300 ) (406 ) — (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,633 195 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — — 9 — Net cash (used in) from financing activities $ (289 ) $ 5,277 $ 195 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) — 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 — 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (20 ) $ 13 $ (47 ) $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (3 ) (1 ) (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — — (8 ) — (8 ) Other, net — — — 17 — 17 Proceeds from intercompany investing activities 51 — 48 — (99 ) — Repayments of intercompany investing activities — (11 ) — (26 ) 37 — Net cash from (used in) investing activities $ 51 $ (14 ) $ 47 $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — — (1 ) — (1 ) Repayments of debt — (4 ) — — — (4 ) Repurchase of shares (15 ) — — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — — 3 — 38 Dividends paid (54 ) — — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — — (3 ) — (3 ) Proceeds from intercompany financing activities — 26 — 11 (37 ) — Repayments of intercompany financing activities — (23 ) — (76 ) 99 — Net cash used in financing activities $ (34 ) $ (1 ) $ — $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) — (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 — 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ — $ 497 $ — $ 503 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (238 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (9 ) (39 ) — (48 ) Capitalized software costs — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — 469 — 469 Redemptions of held-to-maturity investments — — 11 — 11 Sales and redemptions of available for sale securities — — 9 — 9 Other, net — — (6 ) — (6 ) Proceeds from intercompany investing activities — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (4,227 ) (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — (8,200 ) — Additional investment in subsidiaries — (4,600 ) (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (5,236 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — (338 ) — — (338 ) Senior notes issued — 997 — — 997 Proceeds from issue of other debt — 400 — — 400 Repayments of debt (300 ) (406 ) (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,828 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — 9 — Net cash (used in) from financing activities $ (289 ) $ 5,472 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other Consolidating Consolidated NET CASH USED IN OPERATING ACTIVITIES $ (20 ) $ (34 ) $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (4 ) (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — (8 ) — (8 ) Other, net — — 17 — 17 Proceeds from intercompany investing activities 51 48 — (99 ) — Repayments of intercompany investing activities — (11 ) (26 ) 37 — Net cash from (used in) investing activities $ 51 $ 33 $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — (1 ) — (1 ) Repayments of debt — (4 ) — — (4 ) Repurchase of shares (15 ) — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — 3 — 38 Dividends paid (54 ) — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — (3 ) — (3 ) Proceeds from intercompany financing activities — 26 11 (37 ) — Repayments of intercompany financing activities — (23 ) (76 ) 99 — Net cash used in financing activities $ (34 ) $ (1 ) $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ 497 $ — $ 503 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (4 ) $ (211 ) $ (27 ) $ 360 $ — $ 118 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (9 ) — (39 ) — (48 ) Capitalized software costs — — — (18 ) — (18 ) Acquisitions of operations, net of cash acquired — — — 469 — 469 Redemptions of held-to-maturity investments — — — 11 — 11 Sales and redemptions of available for sale securities — — — 9 — 9 Other, net — — — (6 ) — (6 ) Proceeds from intercompany investing activities — — — 9 (9 ) — Repayments of intercompany investing activities (4,308 ) (3,600 ) (627 ) (560 ) 9,095 — Reduction in investment in subsidiaries 4,600 3,600 — — (8,200 ) — Additional investment in subsidiaries — (4,600 ) — (3,600 ) 8,200 — Net cash from (used in) investing activities $ 292 $ (4,609 ) $ (627 ) $ (3,725 ) $ 9,086 $ 417 CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES Net payments on revolving credit facility — — (338 ) — — (338 ) Senior notes issued — — 997 — — 997 Proceeds from issue of other debt — — 400 — — 400 Repayments of debt (300 ) — (406 ) (475 ) — (1,181 ) Proceeds from issuance of shares and excess tax benefit 11 — — — — 11 Acquisitions of and dividends paid to noncontrolling interests — — — (4 ) — (4 ) Proceeds from intercompany financing activities — 4,827 1 4,267 (9,095 ) — Repayments of intercompany financing activities — (9 ) — — 9 — Net cash (used in) from financing activities $ (289 ) $ 4,818 $ 654 $ 3,788 $ (9,086 ) $ (115 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1 ) (2 ) — 423 — 420 Effect of exchange rate changes on cash and cash equivalents — — — 2 — 2 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3 2 — 527 — 532 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2 $ — $ — $ 952 $ — $ 954 Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2015 Willis The Other The Other Consolidating Consolidated NET CASH (USED IN) FROM OPERATING ACTIVITIES $ (20 ) $ (35 ) $ 1 $ (10 ) $ — $ (64 ) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Additions to fixed assets and software for internal use — (4 ) — (13 ) — (17 ) Acquisitions of operations, net of cash acquired — — — (8 ) — (8 ) Other, net — — — 17 — 17 Proceeds from intercompany investing activities 51 48 — — (99 ) — Repayments of intercompany investing activities — (11 ) — (26 ) 37 — Net cash from (used in) investing activities $ 51 $ 33 $ — $ (30 ) $ (62 ) $ (8 ) CASH FLOWS USED IN FINANCING ACTIVITIES Debt issuance costs — — — (1 ) — (1 ) Repayments of debt — — (4 ) — — (4 ) Repurchase of shares (15 ) — — — — (15 ) Proceeds from issuance of shares and excess tax benefit 35 — — 3 — 38 Dividends paid (54 ) — — — — (54 ) Acquisitions of and dividends paid to noncontrolling interests — — — (3 ) — (3 ) Proceeds from intercompany financing activities — 23 3 11 (37 ) — Repayments of intercompany financing activities — (23 ) — (76 ) 99 — Net cash used in financing activities $ (34 ) $ — $ (1 ) $ (66 ) $ 62 $ (39 ) DECREASE IN CASH AND CASH EQUIVALENTS (3 ) (2 ) — (106 ) — (111 ) Effect of exchange rate changes on cash and cash equivalents — — — (21 ) — (21 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9 2 — 624 — 635 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6 $ — $ — $ 497 $ — $ 503 |
Basis of Presentation and Sig41
Basis of Presentation and Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2016arrangement | |
Accounting Policies [Abstract] | |
Number of fixed-fee arrangements | 4 |
Delivered software, initial license and maintenance | |
Deferred Revenue Arrangement [Line Items] | |
Initial contract term used to recognize fees | 1 year |
Merger, Acquisitions and Dive42
Merger, Acquisitions and Divestitures - Narrative (Details) $ / shares in Units, € in Millions | Jan. 05, 2016 | Jan. 04, 2016USD ($)$ / sharesshares | Dec. 29, 2015EUR (€)shares | Dec. 29, 2015USD ($)$ / shares | Nov. 20, 2015 | May. 31, 2015USD ($) | Mar. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 29, 2015USD ($)shares |
Business Acquisition [Line Items] | |||||||||
Willis stock split, conversion ratio | 0.3775 | ||||||||
Value of equity awards assumed | $ 37,000,000 | ||||||||
Towers Watson | |||||||||
Business Acquisition [Line Items] | |||||||||
Dividends paid per share (usd per share) | $ / shares | $ 10 | ||||||||
Dividends paid | $ 694,000,000 | ||||||||
Common shares outstanding | shares | 69,000,000 | 69,000,000 | 69,000,000 | ||||||
Common shares issued | shares | 69,000,000 | 69,000,000 | |||||||
Towers Watson | |||||||||
Business Acquisition [Line Items] | |||||||||
Duration that entity has been in existence (more than) | 100 years | ||||||||
Conversion of Towers Watson stock to Willis stock, conversion ratio | 2.6490 | ||||||||
Value of equity awards assumed | $ 37,000,000 | ||||||||
Total consideration | $ 8,723,000,000 | ||||||||
Towers Watson | Stock options | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of stock options resulting from conversion to acquirer | shares | 592,486 | ||||||||
Value of equity awards assumed | $ 7,000,000 | ||||||||
Fair value of outstanding options related to post-acquistiion employee service | $ 13,000,000 | ||||||||
Towers Watson | Restricted Stock Units | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of stock options resulting from conversion to acquirer | shares | 597,307 | ||||||||
Value of equity awards assumed | $ 30,000,000 | ||||||||
Fair value of outstanding units related to post-acquistiion employee service | $ 32,000,000 | ||||||||
Gras Savoye | |||||||||
Business Acquisition [Line Items] | |||||||||
Percentage of interest acquired | 70.00% | 70.00% | |||||||
Total consideration | € 544 | 592,000,000 | |||||||
Consideration paid in cash | 582,000,000 | ||||||||
Remeasurement fair value of previously held interest in acquisition | € 221 | 241,000,000 | |||||||
Total basis in acquiree | 100.00% | 100.00% | |||||||
Fair value basis of acquisition | € 765 | $ 833,000,000 | |||||||
Discounted fair value of deferred consideration | $ 10,000,000 | ||||||||
Deferred consideration, period for payment, first anniversary | 1 year | 1 year | |||||||
Deferred consideration, period for payment, second anniversary | 2 years | 2 years | |||||||
Goodwill, tax deductible | $ 0 | ||||||||
Miller | |||||||||
Business Acquisition [Line Items] | |||||||||
Percentage of interest acquired | 85.00% | ||||||||
Total consideration | $ 401,000,000 | ||||||||
Consideration paid in cash | 232,000,000 | ||||||||
Discounted fair value of deferred consideration | $ 124,000,000 | ||||||||
Deferred consideration, period for payment, first anniversary | 1 year | ||||||||
Deferred consideration, period for payment, second anniversary | 2 years | ||||||||
Deferred consideration, period for payment, third anniversary | 3 years | ||||||||
Contingent consideration, period for payment | 3 years | ||||||||
Discounted fair value of contingent consideration liability | $ 29,000,000 | ||||||||
Ordinary shares, $0.000304635 nominal value | |||||||||
Business Acquisition [Line Items] | |||||||||
Ordinary shares, nominal value (usd per share) | $ / shares | $ 0.000304635000 | $ 0.000304635 | $ 0.000304635 | ||||||
Common shares issued | shares | 138,398,396 | 68,624,892 | |||||||
Ordinary shares, $0.000304635 nominal value | Towers Watson | |||||||||
Business Acquisition [Line Items] | |||||||||
Conversion of Towers Watson stock to Willis stock, conversion ratio | 2.6490 | ||||||||
Ordinary shares, $0.000115 nominal value | Towers Watson | |||||||||
Business Acquisition [Line Items] | |||||||||
Ordinary shares, nominal value (usd per share) | $ / shares | $ 0.000115 | ||||||||
Line of Credit | 1-year Term Loan Facility Matures 2016 | Term Loan | |||||||||
Business Acquisition [Line Items] | |||||||||
Term loan period | 1 year | 1 year | |||||||
Term loan outstanding | $ 617,000,000 |
Merger, Acquisitions and Dive43
Merger, Acquisitions and Divestitures - Preliminary Calculation of Aggregate Merger Consideration (Details) $ / shares in Units, shares in Millions, $ in Millions | Jan. 04, 2016USD ($)$ / sharesshares | Mar. 31, 2016USD ($) | Dec. 29, 2015shares |
Business Acquisition [Line Items] | |||
Value of equity awards assumed | $ 37 | ||
Towers Watson | |||
Business Acquisition [Line Items] | |||
Number of shares of Towers Watson common stock outstanding as of January 4, 2016 | shares | 69 | 69 | |
Towers Watson | |||
Business Acquisition [Line Items] | |||
Exchange ratio | 2.6490 | ||
Fair value of 184 million Willis ordinary shares | $ 8,686 | ||
Value of equity awards assumed | 37 | ||
Preliminary estimated aggregate Merger Consideration | $ 8,723 | ||
Towers Watson | Willis Group Holdings | |||
Business Acquisition [Line Items] | |||
Number of Willis Group Holdings shares issued (prior to reverse stock split) | shares | 184 | ||
Willis Group Holdings price per share on January 4, 2016 | $ / shares | $ 47.18 |
Merger, Acquisitions and Dive44
Merger, Acquisitions and Divestitures - Schedule of Fair Values of the Identifiable Assets Acquired and Liabilities Assumed (Details) € in Millions | Jan. 04, 2016USD ($) | Dec. 29, 2015USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 29, 2015EUR (€) | Dec. 29, 2015USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 10,477,000,000 | $ 3,737,000,000 | ||||
Towers Watson | ||||||
Business Acquisition [Line Items] | ||||||
Dividends paid | $ 694,000,000 | |||||
Towers Watson | Towers Watson Debt, Due on Change of Control | ||||||
Business Acquisition [Line Items] | ||||||
Long-term debt | $ 400,000,000 | |||||
Repayments of debt | 400,000,000 | |||||
Towers Watson | Towers Watson Debt, Due on Change of Control | Term Loan | ||||||
Business Acquisition [Line Items] | ||||||
Face amount of note | 188,000,000 | |||||
Towers Watson | Towers Watson Debt, Due on Change of Control | Line of Credit | Revolving Credit Facility | ||||||
Business Acquisition [Line Items] | ||||||
Maximum borrowing capacity | 212,000,000 | |||||
Towers Watson | Towers Watson New Term Loan | Term Loan | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from issuance of debt | 340,000,000 | |||||
Towers Watson | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | 476,000,000 | |||||
Accounts receivable, net | 825,000,000 | |||||
Other current assets | 78,000,000 | |||||
Fixed assets, net | 207,000,000 | |||||
Goodwill | 6,702,000,000 | |||||
Other intangible assets | 4,111,000,000 | |||||
Pension benefits assets | 67,000,000 | |||||
Other non-current assets | 85,000,000 | |||||
Deferred tax liabilities | (1,174,000,000) | |||||
Liability for pension benefits | (941,000,000) | |||||
Other current liabilities | (707,000,000) | |||||
Other non-current liabilities | (266,000,000) | |||||
Long term debt, including current portion | (740,000,000) | |||||
Net assets acquired | $ 8,723,000,000 | |||||
Gras Savoye | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 87,000,000 | |||||
Fiduciary assets | 625,000,000 | |||||
Accounts receivable, net | 90,000,000 | |||||
Goodwill | 573,000,000 | |||||
Intangible assets | 445,000,000 | |||||
Other non-current assets | 55,000,000 | |||||
Fiduciary liabilities | (625,000,000) | |||||
Deferred revenue and accrued expenses | (80,000,000) | |||||
Deferred tax liabilities | (89,000,000) | |||||
Other non-current liabilities | (178,000,000) | |||||
Long term debt, including current portion | (80,000,000) | |||||
Net assets acquired | 823,000,000 | |||||
Decrease in paid in capital for purchase of noncontrolling interest | 50,000,000 | |||||
Noncontrolling interest acquired | (40,000,000) | |||||
Preliminary purchase price allocation | € 765 | $ 833,000,000 |
Merger, Acquisitions and Dive45
Merger, Acquisitions and Divestitures - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Millions | Jan. 04, 2016 | Dec. 29, 2015 | Mar. 31, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 4,021 | ||
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | 2,231 | ||
Software | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | 728 | ||
Product | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | 47 | ||
Favorable agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 11 | ||
Towers Watson | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 4,111 | ||
Towers Watson | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 2,231 | ||
Towers Watson | Customer relationships | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Expected life (years) | 7 years | ||
Towers Watson | Customer relationships | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Expected life (years) | 17 years | ||
Towers Watson | Software | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 728 | ||
Towers Watson | Software | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Expected life (years) | 1 year | ||
Towers Watson | Software | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Expected life (years) | 10 years | ||
Towers Watson | Product | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 47 | ||
Expected life (years) | 20 years | ||
Towers Watson | IPR&D | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 91 | ||
Towers Watson | Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 1,003 | ||
Expected life (years) | 25 years | ||
Towers Watson | Favorable agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 11 | ||
Towers Watson | Favorable agreements | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Expected life (years) | 4 years | ||
Towers Watson | Favorable agreements | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Expected life (years) | 11 years | ||
Gras Savoye | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 445 | ||
Gras Savoye | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 332 | ||
Expected life (years) | 20 years | ||
Gras Savoye | Software and other intangibles | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 79 | ||
Expected life (years) | 5 years | ||
Gras Savoye | Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 34 | ||
Expected life (years) | 14 years |
Merger, Acquisitions and Dive46
Merger, Acquisitions and Divestitures - Unaudited Pro Forma Financial Information (Details) - Towers Watson - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 2,234 | $ 2,012 |
Net income attributable to Willis Towers Watson | $ 238 | $ 251 |
Diluted earnings per share (usd per share) | $ 1.75 | $ 1.82 |
Segment Information - Narrative
Segment Information - Narrative (Details) - segment | 3 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 8 | |
Number of reportable segments | 8 | |
Scenario, Forecast | ||
Segment Reporting Information [Line Items] | ||
Number of operating segments | 4 | |
Number of reportable segments | 4 |
Segment Information - Revenue (
Segment Information - Revenue (Net of Reimbursable Expenses) of the Reported Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Total segment revenue | $ 2,234 | $ 1,087 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment revenue | 2,225 | 1,081 |
Operating Segments | Willis International | ||
Segment Reporting Information [Line Items] | ||
Total segment revenue | 481 | 287 |
Operating Segments | Willis North America | ||
Segment Reporting Information [Line Items] | ||
Total segment revenue | 368 | 356 |
Operating Segments | Willis Capital, Wholesale, and Reinsurance | ||
Segment Reporting Information [Line Items] | ||
Total segment revenue | 331 | 296 |
Operating Segments | Willis GB | ||
Segment Reporting Information [Line Items] | ||
Total segment revenue | 139 | 142 |
Operating Segments | Towers Watson Benefits | ||
Segment Reporting Information [Line Items] | ||
Total segment revenue | 486 | 0 |
Operating Segments | Towers Watson Exchange Solutions | ||
Segment Reporting Information [Line Items] | ||
Total segment revenue | 152 | 0 |
Operating Segments | Towers Watson Risk and Financial Services | ||
Segment Reporting Information [Line Items] | ||
Total segment revenue | 144 | 0 |
Operating Segments | Towers Watson Talent and Rewards | ||
Segment Reporting Information [Line Items] | ||
Total segment revenue | $ 124 | $ 0 |
Segment Information - Adjusted
Segment Information - Adjusted Operating Income of the Reported Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Total segment operating income | $ 326 | $ 293 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | 667 | 322 |
Operating Segments | Willis International | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | 147 | 70 |
Operating Segments | Willis North America | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | 83 | 78 |
Operating Segments | Willis Capital, Wholesale, and Reinsurance | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | 152 | 153 |
Operating Segments | Willis GB | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | 20 | 21 |
Operating Segments | Towers Watson Benefits | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | 173 | 0 |
Operating Segments | Towers Watson Exchange Solutions | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | 45 | 0 |
Operating Segments | Towers Watson Risk and Financial Services | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | 34 | 0 |
Operating Segments | Towers Watson Talent and Rewards | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | $ 13 | $ 0 |
Segment Information - Reconcili
Segment Information - Reconciliation of Information Reported by Segment to Consolidated Amounts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | $ 2,234 | $ 1,087 |
Fair value adjustment to deferred revenue in purchase accounting | (32) | 0 |
Reimbursable expenses and interest and other | 41 | 6 |
Total segment operating income | 326 | 293 |
Amortization | (161) | (14) |
Restructuring costs | (25) | (31) |
Merger-related integration expenses | (52) | 0 |
Interest expense | (46) | (33) |
Other expense, net | (18) | (6) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 262 | 254 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 2,225 | 1,081 |
Total segment operating income | 667 | 322 |
Consolidating adjustments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segment operating income | 13 | (15) |
Corporate, Non-Segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Amortization | (126) | 0 |
Restructuring costs | (5) | (11) |
Merger-related integration expenses | (44) | 0 |
Provision for the Stanford litigation | (50) | 0 |
Share-based compensation | (15) | 0 |
Discretionary compensation | (84) | 0 |
Payroll tax on discretionary compensation | (6) | 0 |
Other, net | $ 8 | $ (3) |
Restructuring Costs - Narrative
Restructuring Costs - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | 27 Months Ended | ||
Mar. 31, 2016USD ($)Position | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 25 | $ 31 | |||
Operational Improvement Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of support roles moved from higher cost locations to lower cost locations (more than) | Position | 3,500 | ||||
Ratio of employees in higher cost versus lower cost centers | 4 | ||||
Expected ratio of employees in higher cost versus lower cost centers | 1.5 | ||||
Restructuring costs | $ 25 | $ 31 | $ 126 | $ 36 | $ 187 |
Expected cost | $ 440 | $ 440 |
Restructuring Costs - Analysis
Restructuring Costs - Analysis of the Cost for Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 27 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 25 | $ 31 | |||
Termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 3 | 10 | |||
Professional services and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 22 | 21 | |||
Operating Segments | Willis International | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 8 | 3 | |||
Operating Segments | Willis International | Termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 2 | 2 | |||
Operating Segments | Willis International | Professional services and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 6 | 1 | |||
Operating Segments | Willis North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 8 | 7 | |||
Operating Segments | Willis North America | Termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 1 | 2 | |||
Operating Segments | Willis North America | Professional services and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 7 | 5 | |||
Operating Segments | Willis Capital, Wholesale, and Reinsurance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 1 | 6 | |||
Operating Segments | Willis Capital, Wholesale, and Reinsurance | Termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 0 | 6 | |||
Operating Segments | Willis Capital, Wholesale, and Reinsurance | Professional services and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 1 | 0 | |||
Operating Segments | Willis GB | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 3 | 4 | |||
Operating Segments | Willis GB | Termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 0 | 0 | |||
Operating Segments | Willis GB | Professional services and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 3 | 4 | |||
Legacy Willis Corporate & Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 5 | 11 | |||
Legacy Willis Corporate & Other | Termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 0 | 0 | |||
Legacy Willis Corporate & Other | Professional services and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 5 | 11 | |||
Operational Improvement Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 25 | $ 31 | $ 126 | $ 36 | $ 187 |
Operational Improvement Program | Termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 3 | 36 | 16 | 55 | |
Operational Improvement Program | Professional services and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 22 | 90 | 20 | 132 | |
Operational Improvement Program | Operating Segments | Willis International | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 39 | ||||
Operational Improvement Program | Operating Segments | Willis International | Termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 2 | 8 | 3 | 13 | |
Operational Improvement Program | Operating Segments | Willis International | Professional services and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 6 | 18 | 2 | 26 | |
Operational Improvement Program | Operating Segments | Willis North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 42 | ||||
Operational Improvement Program | Operating Segments | Willis North America | Termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 1 | 8 | 3 | 12 | |
Operational Improvement Program | Operating Segments | Willis North America | Professional services and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 7 | 23 | 0 | 30 | |
Operational Improvement Program | Operating Segments | Willis Capital, Wholesale, and Reinsurance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 11 | ||||
Operational Improvement Program | Operating Segments | Willis Capital, Wholesale, and Reinsurance | Termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 0 | 7 | 1 | 8 | |
Operational Improvement Program | Operating Segments | Willis Capital, Wholesale, and Reinsurance | Professional services and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 1 | 2 | 0 | 3 | |
Operational Improvement Program | Operating Segments | Willis GB | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 40 | ||||
Operational Improvement Program | Operating Segments | Willis GB | Termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 0 | 10 | 9 | 19 | |
Operational Improvement Program | Operating Segments | Willis GB | Professional services and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 3 | 17 | 1 | 21 | |
Operational Improvement Program | Legacy Willis Corporate & Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 55 | ||||
Operational Improvement Program | Legacy Willis Corporate & Other | Termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 0 | 3 | 0 | 3 | |
Operational Improvement Program | Legacy Willis Corporate & Other | Professional services and other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 5 | $ 30 | $ 17 | $ 52 |
Restructuring Costs - Restructu
Restructuring Costs - Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 27 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||||
Charges incurred | $ 25 | $ 31 | |||
Operational Improvement Program | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring liability, beginning balance | 26 | 11 | $ 11 | $ 0 | $ 0 |
Charges incurred | 25 | 31 | 126 | 36 | 187 |
Cash payments | (30) | (111) | (25) | ||
Restructuring liability, ending balance | 21 | 26 | 11 | 21 | |
Termination benefits | |||||
Restructuring Reserve [Roll Forward] | |||||
Charges incurred | 3 | 10 | |||
Termination benefits | Operational Improvement Program | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring liability, beginning balance | 15 | 5 | 5 | 0 | 0 |
Charges incurred | 3 | 36 | 16 | 55 | |
Cash payments | (7) | (26) | (11) | ||
Restructuring liability, ending balance | 11 | 15 | 5 | 11 | |
Professional services and other | |||||
Restructuring Reserve [Roll Forward] | |||||
Charges incurred | 22 | 21 | |||
Professional services and other | Operational Improvement Program | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring liability, beginning balance | 11 | $ 6 | 6 | 0 | 0 |
Charges incurred | 22 | 90 | 20 | 132 | |
Cash payments | (23) | (85) | (14) | ||
Restructuring liability, ending balance | $ 10 | $ 11 | $ 6 | $ 10 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||
Provision for income taxes | $ 18 | $ 56 |
Effective tax rate | 6.90% | 22.00% |
Liability for uncertain tax position | $ 56 | |
Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Expected decrease in liability for uncertain tax position | 5 | |
Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
Expected decrease in liability for uncertain tax position | $ 10 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Number of reporting units | segment | 8 | ||
Amortization of intangible assets, excluding above market leases | $ 161 | $ 14 | |
Acquired unfavorable lease liabilities | $ 33 | $ 23 | |
Weighted average remaining life of amortizable intangible assets | 15 years | ||
In Process Research and Development | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset | $ 91 |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets - Components of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | $ 10,969 | $ 4,229 |
Accumulated impairment losses, beginning balance | (492) | |
Goodwill, net, beginning balance | 3,737 | |
Purchase price allocation adjustments | 2 | |
Goodwill acquired during the period | 6,704 | |
Goodwill disposed of during the period | (5) | |
Foreign exchange | 39 | |
Goodwill, gross, ending balance | 10,969 | |
Accumulated impairment losses, ending balance | (492) | |
Goodwill, net, ending balance | 10,477 | |
Operating Segments | LW International | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | 1,168 | 1,120 |
Accumulated impairment losses, beginning balance | 0 | |
Goodwill, net, beginning balance | 1,120 | |
Purchase price allocation adjustments | 0 | |
Goodwill acquired during the period | 2 | |
Goodwill disposed of during the period | 0 | |
Foreign exchange | 46 | |
Goodwill, gross, ending balance | 1,168 | |
Accumulated impairment losses, ending balance | 0 | |
Goodwill, net, ending balance | 1,168 | |
Operating Segments | LW North America | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | 1,507 | 1,512 |
Accumulated impairment losses, beginning balance | (492) | |
Goodwill, net, beginning balance | 1,020 | |
Purchase price allocation adjustments | 0 | |
Goodwill acquired during the period | 0 | |
Goodwill disposed of during the period | (5) | |
Foreign exchange | 0 | |
Goodwill, gross, ending balance | 1,507 | |
Accumulated impairment losses, ending balance | (492) | |
Goodwill, net, ending balance | 1,015 | |
Operating Segments | LW CWR | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | 1,021 | 1,025 |
Accumulated impairment losses, beginning balance | 0 | |
Goodwill, net, beginning balance | 1,025 | |
Purchase price allocation adjustments | 0 | |
Goodwill acquired during the period | 0 | |
Goodwill disposed of during the period | 0 | |
Foreign exchange | (4) | |
Goodwill, gross, ending balance | 1,021 | |
Accumulated impairment losses, ending balance | 0 | |
Goodwill, net, ending balance | 1,021 | |
Operating Segments | LW GB | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | 571 | 572 |
Accumulated impairment losses, beginning balance | 0 | |
Goodwill, net, beginning balance | 572 | |
Purchase price allocation adjustments | 2 | |
Goodwill acquired during the period | 0 | |
Goodwill disposed of during the period | 0 | |
Foreign exchange | (3) | |
Goodwill, gross, ending balance | 571 | |
Accumulated impairment losses, ending balance | 0 | |
Goodwill, net, ending balance | 571 | |
Operating Segments | LTW Benefits | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | 2,987 | 0 |
Accumulated impairment losses, beginning balance | 0 | |
Goodwill, net, beginning balance | 0 | |
Purchase price allocation adjustments | 0 | |
Goodwill acquired during the period | 2,987 | |
Goodwill disposed of during the period | 0 | |
Foreign exchange | 0 | |
Goodwill, gross, ending balance | 2,987 | |
Accumulated impairment losses, ending balance | 0 | |
Goodwill, net, ending balance | 2,987 | |
Operating Segments | LTW Exchange Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | 2,240 | 0 |
Accumulated impairment losses, beginning balance | 0 | |
Goodwill, net, beginning balance | 0 | |
Purchase price allocation adjustments | 0 | |
Goodwill acquired during the period | 2,240 | |
Goodwill disposed of during the period | 0 | |
Foreign exchange | 0 | |
Goodwill, gross, ending balance | 2,240 | |
Accumulated impairment losses, ending balance | 0 | |
Goodwill, net, ending balance | 2,240 | |
Operating Segments | LTW Risk and Financial Services | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | 728 | 0 |
Accumulated impairment losses, beginning balance | 0 | |
Goodwill, net, beginning balance | 0 | |
Purchase price allocation adjustments | 0 | |
Goodwill acquired during the period | 728 | |
Goodwill disposed of during the period | 0 | |
Foreign exchange | 0 | |
Goodwill, gross, ending balance | 728 | |
Accumulated impairment losses, ending balance | 0 | |
Goodwill, net, ending balance | 728 | |
Operating Segments | LTW Talent and Rewards | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning balance | 747 | $ 0 |
Accumulated impairment losses, beginning balance | 0 | |
Goodwill, net, beginning balance | 0 | |
Purchase price allocation adjustments | 0 | |
Goodwill acquired during the period | 747 | |
Goodwill disposed of during the period | 0 | |
Foreign exchange | 0 | |
Goodwill, gross, ending balance | 747 | |
Accumulated impairment losses, ending balance | 0 | |
Goodwill, net, ending balance | $ 747 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets - Finite-Lived Intangible Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Balance as of December 31, 2015 | $ 1,115 | ||
Intangible assets acquired | 4,021 | ||
Intangible assets disposed | (3) | ||
Amortization | (161) | $ (14) | |
Foreign Exchange | 23 | ||
Balance as of March 31, 2016 | 4,995 | ||
Finite-lived intangible assets, gross carrying amount | 5,533 | $ 1,499 | |
Finite-lived intangible assets, accumulated amortization | (538) | (384) | |
Finite-lived intangible liabilities, gross carrying amount | 35 | 23 | |
Finite-lived intangible liabilities, accumulated amortization | (2) | 0 | |
Client relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Balance as of December 31, 2015 | 920 | ||
Intangible assets acquired | 2,231 | ||
Intangible assets disposed | (3) | ||
Amortization | (110) | ||
Foreign Exchange | 19 | ||
Balance as of March 31, 2016 | 3,057 | ||
Finite-lived intangible assets, gross carrying amount | 3,535 | 1,293 | |
Finite-lived intangible assets, accumulated amortization | (478) | (373) | |
Management contracts | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Balance as of December 31, 2015 | 62 | ||
Intangible assets acquired | 0 | ||
Intangible assets disposed | 0 | ||
Amortization | (1) | ||
Foreign Exchange | 2 | ||
Balance as of March 31, 2016 | 63 | ||
Finite-lived intangible assets, gross carrying amount | 69 | 67 | |
Finite-lived intangible assets, accumulated amortization | (6) | (5) | |
Software | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Balance as of December 31, 2015 | 77 | ||
Intangible assets acquired | 728 | ||
Intangible assets disposed | 0 | ||
Amortization | (38) | ||
Foreign Exchange | 1 | ||
Balance as of March 31, 2016 | 768 | ||
Finite-lived intangible assets, gross carrying amount | 805 | 77 | |
Finite-lived intangible assets, accumulated amortization | (37) | 0 | |
Trademark and trade name | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Balance as of December 31, 2015 | 50 | ||
Intangible assets acquired | 1,003 | ||
Intangible assets disposed | 0 | ||
Amortization | (10) | ||
Foreign Exchange | 1 | ||
Balance as of March 31, 2016 | 1,044 | ||
Finite-lived intangible assets, gross carrying amount | 1,056 | 52 | |
Finite-lived intangible assets, accumulated amortization | (12) | (2) | |
Product | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Balance as of December 31, 2015 | 0 | ||
Intangible assets acquired | 47 | ||
Intangible assets disposed | 0 | ||
Amortization | (1) | ||
Foreign Exchange | (1) | ||
Balance as of March 31, 2016 | 45 | ||
Finite-lived intangible assets, gross carrying amount | 46 | 0 | |
Finite-lived intangible assets, accumulated amortization | (1) | 0 | |
Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Balance as of December 31, 2015 | 4 | ||
Intangible assets acquired | 1 | ||
Intangible assets disposed | 0 | ||
Amortization | (1) | ||
Foreign Exchange | 1 | ||
Balance as of March 31, 2016 | 5 | ||
Finite-lived intangible assets, gross carrying amount | 8 | 8 | |
Finite-lived intangible assets, accumulated amortization | (3) | (4) | |
Favorable agreements | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Balance as of December 31, 2015 | 2 | ||
Intangible assets acquired | 11 | ||
Intangible assets disposed | 0 | ||
Amortization | 0 | ||
Foreign Exchange | 0 | ||
Balance as of March 31, 2016 | 13 | ||
Finite-lived intangible assets, gross carrying amount | 14 | 2 | |
Finite-lived intangible assets, accumulated amortization | $ (1) | $ 0 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets - Schedule of Future Amortization Expense and Rent Offset (Details) $ in Millions | Mar. 31, 2016USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2,016 | $ 471 |
2,017 | 594 |
2,018 | 544 |
2,019 | 488 |
2,020 | 431 |
Thereafter | 2,454 |
Total | 4,982 |
Rent offset | |
2,016 | (3) |
2,017 | (4) |
2,018 | (3) |
2,019 | (2) |
2,020 | (2) |
Thereafter | (6) |
Total | $ (20) |
Derivative Financial Instrume59
Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Derivative, loss on derivative within the next twelve months | $ 25,000,000 | ||
Designated as Hedging Instrument | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 300,000,000 | ||
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Gain (loss) in earnings for derivatives not designated as hedging instruments | (12,000,000) | $ 2,000,000 | |
Not Designated as Hedging Instrument | Forward exchange contracts | |||
Derivative [Line Items] | |||
Derivative, notional amount | 958,000,000 | 532,000,000 | |
Derivative liability, fair value | 13,000,000 | 0 | |
Cash Flow Hedges | Designated as Hedging Instrument | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, notional amount | 300,000,000 | ||
Derivative asset, fair value | 2,000,000 | 0 | |
Cash Flow Hedges | Designated as Hedging Instrument | Forward exchange contracts | |||
Derivative [Line Items] | |||
Derivative, notional amount | 1,100,000,000 | 1,300,000,000 | |
Derivative liability, fair value | 57,000,000 | $ 31,000,000 | |
Cash Flow Hedges | Designated as Hedging Instrument | Forward exchange forward contracts | |||
Derivative [Line Items] | |||
Gain (loss) in earnings on changes in fair value of foreign currency hedges | $ (13,000,000) | $ 2,000,000 | |
Maximum | |||
Derivative [Line Items] | |||
Longest outstanding maturity | 2 years 8 months |
Debt - Schedule of Short-term D
Debt - Schedule of Short-term Debt and Current Maturities of Long-Term Debt (Details) - USD ($) $ in Millions | Jan. 04, 2016 | Nov. 20, 2015 | Mar. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||||
Short-term debt and current portion of the long-term debt | $ 1,144 | $ 988 | ||
Senior Notes | 4.125% senior notes due 2016 | ||||
Short-term Debt [Line Items] | ||||
Stated interest rate (as a percent) | 4.125% | |||
Senior Notes | 6.200% senior notes due 2017 | ||||
Short-term Debt [Line Items] | ||||
Stated interest rate (as a percent) | 6.20% | |||
Bank Overdrafts | ||||
Short-term Debt [Line Items] | ||||
Short-term debt and current portion of the long-term debt | $ 26 | 79 | ||
Term Loan | 7-year term loan facility expires 2018 | ||||
Short-term Debt [Line Items] | ||||
Short-term debt and current portion of the long-term debt | $ 22 | 22 | ||
Term loan period | 7 years | |||
Term Loan | Term loan expires 2019 | ||||
Short-term Debt [Line Items] | ||||
Short-term debt and current portion of the long-term debt | $ 85 | 0 | ||
Term loan period | 4 years | |||
Senior Notes | 4.125% senior notes due 2016 | ||||
Short-term Debt [Line Items] | ||||
Short-term debt and current portion of the long-term debt | 0 | 300 | ||
Senior Notes | 6.200% senior notes due 2017 | ||||
Short-term Debt [Line Items] | ||||
Short-term debt and current portion of the long-term debt | $ 394 | 0 | ||
Stated interest rate (as a percent) | 6.20% | |||
Line of Credit | Term Loan | 1-year term loan facility matures 2016 | ||||
Short-term Debt [Line Items] | ||||
Short-term debt and current portion of the long-term debt | $ 617 | $ 587 | ||
Term loan period | 1 year | 1 year |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) - USD ($) | Jan. 04, 2016 | Mar. 31, 2016 | Mar. 22, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 2,767,000,000 | $ 2,278,000,000 | ||
Term Loan | 7-year term loan facility expires 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 213,000,000 | 218,000,000 | ||
Term loan period | 7 years | |||
Term Loan | Term loan expires 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 232,000,000 | 0 | ||
Term loan period | 4 years | |||
Line of Credit | Revolving Credit Facility | Revolving $800 million credit facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | 135,000,000 | 467,000,000 | ||
Maximum borrowing capacity | 800,000,000 | |||
Senior Notes | 6.200% senior notes due 2017 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 0 | 394,000,000 | ||
Stated interest rate (as a percent) | 6.20% | |||
Senior Notes | 7.000% senior notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 186,000,000 | 186,000,000 | ||
Stated interest rate (as a percent) | 7.00% | |||
Senior Notes | 5.750% senior notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 495,000,000 | 495,000,000 | ||
Stated interest rate (as a percent) | 5.75% | |||
Senior Notes | 3.500% senior notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 445,000,000 | 0 | ||
Stated interest rate (as a percent) | 3.50% | 3.50% | ||
Senior Notes | 4.625% senior notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 247,000,000 | 247,000,000 | ||
Stated interest rate (as a percent) | 4.625% | |||
Senior Notes | 4.400% senior notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 543,000,000 | 0 | ||
Stated interest rate (as a percent) | 4.40% | 4.40% | ||
Senior Notes | 6.125% senior notes due 2043 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding current maturities | $ 271,000,000 | $ 271,000,000 | ||
Stated interest rate (as a percent) | 6.125% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Mar. 22, 2016USD ($) | Jan. 04, 2016USD ($) | Dec. 28, 2015USD ($) | Dec. 19, 2015EUR (€) | Dec. 19, 2015USD ($) | Nov. 20, 2015EUR (€)tranche | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Senior Notes | 4.125% Senior Notes Due 2016 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 4.125% | |||||||
Line of Credit | Term Loan | 1-year Term Loan Facility Matures 2016 | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan period | 1 year | 1 year | ||||||
Number of tranches | tranche | 2 | |||||||
Short-term borrowings outstanding | $ 620,000,000 | $ 592,000,000 | ||||||
Debt issuance fees | 3,000,000 | 5,000,000 | ||||||
Line of Credit | Term Loan | 1-year Term Loan Facility Matures 2016 | Eurocurrency Rate Loans in US dollars, LIBOR or EURIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 1.25% | |||||||
Line of Credit | Term Loan | 1-year Term Loan Facility Matures 2016 | Eurocurrency Rate Loans in US dollars, LIBOR or EURIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 2.00% | |||||||
Debt Instrument, Threshold for Variable Rate | 0.00% | |||||||
Line of Credit | Term Loan | 1-year Term Loan Facility Matures 2016 | Bank Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Period After Which Additional Margin Rate is Applied | 180 days | |||||||
Interest rate spread, second (as a percent) | 0.50% | |||||||
Line of Credit | Term Loan | 1-year Term Loan Facility Matures 2016 | Bank Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 0.25% | |||||||
Line of Credit | Term Loan | 1-year Term Loan Facility Matures 2016 | Bank Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 1.00% | |||||||
Line of Credit | Term Loan | 1-year Term Loan Facility Matures 2016, Tranche one | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | € | € 550,000,000 | |||||||
Amounts drawn on line of credit | € 544,000,000 | $ 592,000,000 | ||||||
Line of Credit | Term Loan | 1-year Term Loan Facility Matures 2016, Tranche two | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of debt | $ 400,000,000 | |||||||
Amounts drawn on line of credit | $ 400,000,000 | |||||||
Line of Credit | Revolving Credit Facility | Revolving $800 million Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of debt | 300,000,000 | |||||||
Maximum borrowing capacity | 800,000,000 | |||||||
Long-term borrowings outstanding | $ 135,000,000 | 467,000,000 | ||||||
Line of Credit | Revolving Credit Facility | Revolving $800 million Credit Facility | LIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 1.25% | |||||||
Line of Credit | Revolving Credit Facility | Revolving $800 million Credit Facility | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 2.00% | |||||||
Line of Credit | Revolving Credit Facility | Revolving $800 million Credit Facility | Bank Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 0.25% | |||||||
Line of Credit | Revolving Credit Facility | Revolving $800 million Credit Facility | Bank Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 1.00% | |||||||
Line of Credit | Revolving Credit Facility | WSI Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term borrowings outstanding | $ 0 | $ 0 | ||||||
Line of Credit | Revolving Credit Facility | WSI Revolving Credit Facility | LIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 1.25% | |||||||
Line of Credit | Revolving Credit Facility | WSI Revolving Credit Facility | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 2.00% | |||||||
Line of Credit | Revolving Credit Facility | WSI Revolving Credit Facility | Bank Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 0.25% | |||||||
Line of Credit | Revolving Credit Facility | WSI Revolving Credit Facility | Bank Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 1.00% | |||||||
Term Loan | 7-year term loan facility expires 2018 | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan period | 7 years | |||||||
Quarterly payment | $ 6,000,000 | |||||||
Final payment of debt | 186,000,000 | |||||||
Term Loan | Term loan expires 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of note | $ 340,000,000 | |||||||
Proceeds from long-term debt issuance | $ 340,000,000 | |||||||
Term loan period | 4 years | |||||||
Quarterly payment | 21,000,000 | |||||||
Debt issuance fees | $ 2,000,000 | |||||||
Weighted average interest rate (as a percent) | 1.78% | |||||||
Long-term debt, gross | $ 319,000,000 | |||||||
Term Loan | Term loan expires 2019 | LIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 1.25% | |||||||
Term Loan | Term loan expires 2019 | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 1.75% | |||||||
Term Loan | Term loan expires 2019 | Bank Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 0.25% | |||||||
Term Loan | Term loan expires 2019 | Bank Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 0.75% | |||||||
Senior Notes | Senior Notes Due 2021 and 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from long-term debt issuance | 988,000,000 | |||||||
Senior Notes | 3.500% senior notes due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of note | $ 450,000,000 | |||||||
Stated interest rate (as a percent) | 3.50% | 3.50% | ||||||
Effective interest rate (as a percent) | 3.707% | |||||||
Senior Notes | 4.400% senior notes due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of note | $ 550,000,000 | |||||||
Stated interest rate (as a percent) | 4.40% | 4.40% | ||||||
Effective interest rate (as a percent) | 4.572% | |||||||
BBB | Baa3 | Line of Credit | Term Loan | 1-year Term Loan Facility Matures 2016 | Eurocurrency Rate Loans in US dollars, LIBOR or EURIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 1.375% | |||||||
BBB | Baa3 | Line of Credit | Revolving Credit Facility | Revolving $800 million Credit Facility | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 1.375% | |||||||
BBB | Baa3 | Line of Credit | Revolving Credit Facility | WSI Revolving Credit Facility | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate spread (as a percent) | 1.50% |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
7-year term loan facility expires 2018 | Term Loan | |
Debt Instrument [Line Items] | |
Term loan period | 7 years |
Revolving $800 million credit facility | Line of Credit | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Line of credit, maximum borrowing capacity | $ 800,000,000 |
Level 2 | 7-year term loan facility expires 2018 | Term Loan | |
Debt Instrument [Line Items] | |
Term loan period | 7 years |
Level 2 | Revolving $800 million credit facility | Line of Credit | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Line of credit, maximum borrowing capacity | $ 800,000,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds / exchange traded funds | $ 39 | |
Derivative financial instruments, assets | 15 | $ 26 |
Derivative financial instruments, liabilities | 83 | 57 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds / exchange traded funds | 39 | |
Derivative financial instruments, assets | 0 | 0 |
Derivative financial instruments, liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds / exchange traded funds | 0 | |
Derivative financial instruments, assets | 15 | 26 |
Derivative financial instruments, liabilities | 83 | 57 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds / exchange traded funds | 0 | |
Derivative financial instruments, assets | 0 | 0 |
Derivative financial instruments, liabilities | $ 0 | $ 0 |
Fair Value Measurements - Sch65
Fair Value Measurements - Schedule of Liabilities Whose Carrying Values Differ From the Fair Value and are Not Measured on a Recurring Basis (Details) - Nonrecurring - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long term debt | $ 1,144 | $ 988 |
Long-term debt | 2,767 | 2,278 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long term debt | 1,164 | 998 |
Long-term debt | $ 2,922 | $ 2,394 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Millions | Jan. 04, 2016 | Mar. 31, 2016 | Mar. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Portion of pension and OPEB obligation attributed to disclosed plans (as a percent) | 99.00% | ||
Defined contribution plan, employer contribution | $ 36 | $ 14 | |
Towers Watson | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets acquired | $ 3,700 | ||
Benefit obligation acquired | 4,600 | ||
Pension assets | 67 | ||
Liability for pension benefits | $ (941) | ||
U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Funding of defined benefit pension plans | 0 | ||
Foreign Pension Plan | U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Funding of defined benefit pension plans | 32 | ||
Defined benefit plan, estimated future employer contributions, remainder of fiscal year | 78 | ||
Foreign Pension Plan | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Funding of defined benefit pension plans | 6 | ||
Defined benefit plan, estimated future employer contributions, remainder of fiscal year | $ 17 | ||
Legacy Towers Watson U.S. Defined Contribution Plan | U.S. Defined Contribution Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contribution, percent of match, tier one | 2.00% | ||
Defined contribution plan, employer matching contribution, percent of employee contribution, tier one | 100.00% | ||
Defined contribution plan, employer matching contribution, percent of match, tier two | 4.00% | ||
Defined contribution plan, employer matching contribution, percent of employee contribution, tier two | 50.00% | ||
Defined contribution plan, employer match, requisite service period | 2 years |
Retirement Benefits - Net Perio
Retirement Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Plan | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 15 | $ 0 |
Interest cost | 34 | 10 |
Expected return on plan assets | (59) | (14) |
Settlement | 0 | 0 |
Amortization of net loss | 3 | 3 |
Amortization of prior service (credit) | 0 | 0 |
Net periodic benefit (income) cost | (7) | (1) |
Pension Plan | U.K. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 6 | 10 |
Interest cost | 28 | 26 |
Expected return on plan assets | (64) | (57) |
Settlement | 0 | 0 |
Amortization of net loss | 11 | 9 |
Amortization of prior service (credit) | (5) | (2) |
Net periodic benefit (income) cost | (24) | (14) |
Pension Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 5 | 1 |
Interest cost | 6 | 2 |
Expected return on plan assets | (8) | (1) |
Settlement | 2 | 0 |
Amortization of net loss | 0 | 0 |
Amortization of prior service (credit) | 0 | 0 |
Net periodic benefit (income) cost | 5 | 2 |
Postretirement Welfare Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 1 | 0 |
Expected return on plan assets | 0 | 0 |
Settlement | 0 | 0 |
Amortization of net loss | 0 | 0 |
Amortization of prior service (credit) | 0 | 0 |
Net periodic benefit (income) cost | $ 1 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) £ in Millions, $ in Millions | Apr. 27, 2016USD ($) | Mar. 31, 2016USD ($) | Jan. 04, 2016USD ($) | Oct. 01, 2015USD ($)shares | Jul. 21, 2015 | Jul. 15, 2015 | Aug. 01, 2014USD ($) | Oct. 01, 2013USD ($) | Jun. 20, 2013lawsuit | Jun. 11, 2013lawsuit | Jun. 03, 2013lawsuit | Feb. 14, 2013USD ($)lawsuitplaintiff | Feb. 08, 2013USD ($)plaintiff | Mar. 11, 2011USD ($)plaintiff | Sep. 16, 2010USD ($)plaintiff | Sep. 14, 2009USD ($)plaintiff | Aug. 06, 2009USD ($) | Jul. 02, 2009USD ($) | Mar. 23, 2016complaintshareholdershares | Dec. 10, 2015plaintiff | Mar. 31, 2016USD ($)complaintlawsuit | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Oct. 31, 2012GBP (£) | May. 10, 2016 | May. 09, 2016complaint | Mar. 25, 2014action | Aug. 31, 2008GBP (£) |
Stanford Financial Group | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of complaints filed | lawsuit | 13 | |||||||||||||||||||||||||||
de Gadala-Maria, et al. v. Willis Group Holdings Public Limited Company, et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Period to replead dismissed claim | 21 days | |||||||||||||||||||||||||||
Towers Watson | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Operating lease obligations acquired | $ 459 | $ 459 | ||||||||||||||||||||||||||
Total consideration | $ 8,723 | |||||||||||||||||||||||||||
Towers Watson | Longitude Holdings Limited | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Total consideration | $ 40 | |||||||||||||||||||||||||||
Capital contributions | $ 5 | |||||||||||||||||||||||||||
Shares purchased in investee | shares | 48,322 | |||||||||||||||||||||||||||
Ownership percentage in investee | 24.20% | |||||||||||||||||||||||||||
Pending Litigation | Towers Watson Merger | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of complaints filed | complaint | 5 | |||||||||||||||||||||||||||
Pending Litigation | Canabal, et al. v. Willis of Colorado, Inc., et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Damages sought (in excess of) | $ 1,000 | |||||||||||||||||||||||||||
Pending Litigation | Rupert, et al. v. Winter, et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of plaintiffs | plaintiff | 97 | |||||||||||||||||||||||||||
Damages sought (in excess of) | $ 300 | |||||||||||||||||||||||||||
Pending Litigation | Casanova, et al. v. Willis of Colorado, Inc., et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of plaintiffs | plaintiff | 7 | |||||||||||||||||||||||||||
Damages sought (in excess of) | $ 5 | |||||||||||||||||||||||||||
Pending Litigation | Rishmague, et ano. v. Winter, et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of plaintiffs | plaintiff | 2 | |||||||||||||||||||||||||||
Damages sought (in excess of) | $ 37 | |||||||||||||||||||||||||||
Pending Litigation | MacArthur v. Winter, et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of plaintiffs | plaintiff | 2 | |||||||||||||||||||||||||||
Damages sought (in excess of) | $ 4 | |||||||||||||||||||||||||||
Pending Litigation | Stanford Financial Group, Florida Suits | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of complaints filed | lawsuit | 5 | |||||||||||||||||||||||||||
Number of cases removed | lawsuit | 5 | |||||||||||||||||||||||||||
Number of cases moved to stay | lawsuit | 4 | |||||||||||||||||||||||||||
Number of cases transferred | lawsuit | 5 | |||||||||||||||||||||||||||
Period that case is stayed | 7 days | |||||||||||||||||||||||||||
Pending Litigation | Barbar, et al. v. Willis Group Holdings Public Limited Company, et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of plaintiffs | plaintiff | 35 | |||||||||||||||||||||||||||
Damages sought (in excess of) | $ 30 | |||||||||||||||||||||||||||
Pending Litigation | de Gadala-Maria, et al. v. Willis Group Holdings Public Limited Company, et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of plaintiffs | plaintiff | 64 | |||||||||||||||||||||||||||
Damages sought (in excess of) | $ 83.5 | |||||||||||||||||||||||||||
Pending Litigation | Ranni, et ano. v. Willis Group Holdings Public Limited Company, et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of plaintiffs | plaintiff | 2 | |||||||||||||||||||||||||||
Damages sought (in excess of) | $ 3 | |||||||||||||||||||||||||||
Pending Litigation | Tisminesky, et al. v. Willis Group Holdings Public Limited Company, et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of plaintiffs | plaintiff | 11 | |||||||||||||||||||||||||||
Damages sought (in excess of) | $ 6.5 | |||||||||||||||||||||||||||
Period to replead dismissed claim | 21 days | |||||||||||||||||||||||||||
Pending Litigation | Zacarias, et al. v. Willis Group Holdings Public Limited Company, et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of plaintiffs | plaintiff | 10 | |||||||||||||||||||||||||||
Damages sought (in excess of) | $ 12.5 | |||||||||||||||||||||||||||
Period to replead dismissed claim | 21 days | |||||||||||||||||||||||||||
Pending Litigation | City of Houston | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Increase to actuarial accrued liability alleged by plaintiff | $ 163 | |||||||||||||||||||||||||||
Pending Litigation | Coal Staff Superannuation Scheme Trustees Limited | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Damages sought (in excess of) | £ | £ 47.5 | |||||||||||||||||||||||||||
Derivative, notional amount | £ | £ 250 | |||||||||||||||||||||||||||
Pending Litigation | Meriter | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Damages sought (in excess of) | $ 135 | |||||||||||||||||||||||||||
Pending Litigation | Towers Watson | Towers Watson Merger, Demand for Appraisal | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of complaints filed | complaint | 3 | |||||||||||||||||||||||||||
Number of plaintiffs | 3 | 10 | ||||||||||||||||||||||||||
Percentage of stock owned by plaintiffs | 2.40% | |||||||||||||||||||||||||||
Number of shares owned by plaintiffs | shares | 1,354,338 | |||||||||||||||||||||||||||
Settled Litigation | Stanford Financial Group | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Provision for litigation losses | $ 70 | |||||||||||||||||||||||||||
Settled Litigation | Troice and Janvey Cases | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Provision for litigation losses | $ 50 | |||||||||||||||||||||||||||
Settlement amount against the Company | $ 120 | |||||||||||||||||||||||||||
Settled Litigation | Troice, et al. v. Willis of Colorado, Inc., et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Damages sought (in excess of) | $ 1,000 | |||||||||||||||||||||||||||
Number of actions consolidated | action | 2 | |||||||||||||||||||||||||||
Settled Litigation | Janvey, et al. v. Willis of Colorado, Inc., et al. | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Damages sought (in excess of) | $ 1,000 | |||||||||||||||||||||||||||
Total losses incurred by plaintiff | $ 4,600 | |||||||||||||||||||||||||||
Settled Litigation | Meriter | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Damages paid | $ 82 | |||||||||||||||||||||||||||
Subsequent Event | Pending Litigation | Towers Watson Merger | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Damages sought (in excess of) | $ 1.7 | |||||||||||||||||||||||||||
Subsequent Event | Pending Litigation | Towers Watson | Towers Watson Merger, Demand for Appraisal | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Percentage of stock with outstanding demands for appraisal | 2.00% | |||||||||||||||||||||||||||
Number of actions consolidated | complaint | 3 |
Supplementary Information for69
Supplementary Information for Select Balance Sheet Accounts - Narrative (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Account variance, percent (greater than) | 10.00% |
Supplementary Information for70
Supplementary Information for Select Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 2,268 | $ 1,258 |
Billed, net of allowance for doubtful debts of $34 million and $22 million | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 1,640 | 1,051 |
Allowance for doubtful debts | 34 | 22 |
Accrued and unbilled, at estimated net realizable value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 628 | $ 207 |
Supplementary Information for71
Supplementary Information for Select Balance Sheet Accounts - Prepaid and Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Prepayments and accrued income | $ 142 | $ 86 |
Derivatives and investments | 29 | 29 |
Deferred compensation plan assets | 20 | 20 |
Retention incentives | 14 | 14 |
Corporate income and other taxes | 72 | 66 |
Other current assets | 49 | 40 |
Total prepaid other current assets | $ 326 | $ 255 |
Supplementary Information for72
Supplementary Information for Select Balance Sheet Accounts - Other Non-current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Prepayments and accrued income | $ 28 | $ 23 |
Deferred compensation plan assets | 102 | 102 |
Deferred tax assets | 44 | 76 |
Accounts receivable, net | 28 | 30 |
Other investments | 53 | 42 |
Other non-current assets | 93 | 25 |
Total other non-current assets | $ 348 | $ 298 |
Supplementary Information for73
Supplementary Information for Select Balance Sheet Accounts - Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Accounts payable | $ 114 | $ 75 |
Income and other taxes payable | 136 | 45 |
Contingent and deferred consideration on acquisition | 69 | 68 |
Payroll related liabilities | 219 | 82 |
Derivatives | 50 | 31 |
Third party commissions | 180 | 177 |
Other current liabilities | 204 | 125 |
Total other current liabilities | $ 972 | $ 603 |
Supplementary Information for74
Supplementary Information for Select Balance Sheet Accounts - Other Non-current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Incentives from lessors | $ 173 | $ 175 |
Deferred compensation plan liability | 102 | 102 |
Contingent and deferred consideration on acquisition | 151 | 156 |
Income taxes payable | 57 | 20 |
Derivatives | 33 | 27 |
Other non-current liabilities | 89 | 53 |
Total other non-current liabilities | $ 605 | $ 533 |
Accumulated Other Comprehensi75
Accumulated Other Comprehensive Income/(Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 2,229 | |
Ending Balance | 11,151 | |
Amounts reclassified from accumulated other comprehensive income, tax | 3 | $ 2 |
Foreign currency translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (314) | (191) |
Other comprehensive income/(loss) before reclassifications | 4 | (105) |
Amounts reclassified from accumulated other comprehensive income (net of income tax) | 0 | 0 |
Other comprehensive income/(loss) before non-controlling interests | 4 | (105) |
Ending Balance | (310) | (296) |
Gains and losses on cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (10) | 18 |
Other comprehensive income/(loss) before reclassifications | (19) | (11) |
Amounts reclassified from accumulated other comprehensive income (net of income tax) | (3) | 0 |
Other comprehensive income/(loss) before non-controlling interests | (22) | (11) |
Ending Balance | (32) | 7 |
Defined pension and post-retirement benefit costs | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (713) | (893) |
Other comprehensive income/(loss) before reclassifications | (6) | 222 |
Amounts reclassified from accumulated other comprehensive income (net of income tax) | 8 | 8 |
Other comprehensive income/(loss) before non-controlling interests | 2 | 230 |
Ending Balance | (711) | (663) |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,037) | (1,066) |
Other comprehensive income/(loss) before reclassifications | (21) | 106 |
Amounts reclassified from accumulated other comprehensive income (net of income tax) | 5 | 8 |
Other comprehensive income/(loss) before non-controlling interests | (16) | 114 |
Ending Balance | $ (1,053) | $ (952) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Time-based shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 0.7 | 0.5 |
Time-based shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding | 1.5 | 1.9 |
Performance based | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding | 1.3 | 1.2 |
Restricted share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted share units outstanding | 1.2 | 1.2 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Earnings Per Share [Abstract] | |||
Net income attributable to Willis Towers Watson | $ 238 | $ 210 | |
Basic average number of shares outstanding (shares) | 135 | 68 | |
Dilutive effect of potentially issuable shares (shares) | 1 | 1 | |
Diluted average number of shares outstanding (shares) | 136 | 69 | |
Basic earnings per share (usd per share) | [1] | $ 1.76 | $ 3.09 |
Dilutive effect of potentially issuable shares (usd per share) | (0.01) | (0.05) | |
Diluted earnings per share (usd per share) | [1] | $ 1.75 | $ 3.04 |
[1] | Basic and diluted earnings per share, and cash dividends declared per share, for the three months ended March 31, 2015 have been retroactively adjusted to reflect the reverse stock split on January 4, 2016. See Note 3 — Merger, Acquisitions and Divestitures for further details. |
Subsequent Events (Details)
Subsequent Events (Details) - Apr. 28, 2016 - Fine Art Jewellery and Specie - Settled Litigation - Subsequent Event £ in Thousands, $ in Millions | USD ($) | GBP (£) |
Subsequent Event [Line Items] | ||
Litigation settlement amount awarded to Company | $ 41 | £ 28,000 |
Litigation settlement, legal fee reimbursement awarded to Company (minimum) | $ 4 | £ 2,750 |
Financial Information for Par79
Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Jul. 01, 2015 |
Willis North America | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 148 | |
The Other Guarantors | ||
Debt Instrument [Line Items] | ||
Subsidiary, ownership percentage by parent | 100.00% | |
6.200% senior notes due 2017 | Willis North America | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 394 | |
7.000% senior notes due 2019 | Willis North America | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 187 |
Financial Information for Par80
Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Unaudited Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | $ 2,219 | $ 1,081 |
Interest and other income | 15 | 6 |
Total revenues | 2,234 | 1,087 |
Salaries and benefits | (1,196) | (567) |
Other operating expenses | (431) | (160) |
Depreciation | (43) | (22) |
Amortization | (161) | (14) |
Restructuring costs | (25) | (31) |
Integration expenses | (52) | 0 |
Total costs of providing services | (1,908) | (794) |
Income from operations | 326 | 293 |
Income from Group undertakings | 0 | 0 |
Expenses due to Group undertakings | 0 | 0 |
Interest expense | (46) | (33) |
Other expense, net | (18) | (6) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 262 | 254 |
Provision for income taxes | (18) | (56) |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 244 | 198 |
Interest in earnings of associates, net of tax | 1 | 16 |
Equity account for subsidiaries | 0 | 0 |
NET INCOME | 245 | 214 |
Income attributable to non-controlling interests | (7) | (4) |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | 238 | 210 |
Consolidating adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 0 | 0 |
Interest and other income | 0 | 0 |
Total revenues | 0 | 0 |
Salaries and benefits | 0 | 0 |
Other operating expenses | 0 | 0 |
Depreciation | 0 | 0 |
Amortization | 0 | 0 |
Restructuring costs | 0 | 0 |
Integration expenses | 0 | 0 |
Total costs of providing services | 0 | 0 |
Income from operations | 0 | 0 |
Income from Group undertakings | (205) | (135) |
Expenses due to Group undertakings | 205 | 135 |
Interest expense | 0 | 0 |
Other expense, net | 0 | 1 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 0 | 1 |
Provision for income taxes | 0 | 0 |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 0 | 1 |
Interest in earnings of associates, net of tax | 0 | 0 |
Equity account for subsidiaries | (465) | (523) |
NET INCOME | (465) | (522) |
Income attributable to non-controlling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | (465) | (522) |
Willis Towers Watson | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 0 | 0 |
Interest and other income | 0 | 0 |
Total revenues | 0 | 0 |
Salaries and benefits | 0 | 0 |
Other operating expenses | (1) | (9) |
Depreciation | 0 | 0 |
Amortization | 0 | 0 |
Restructuring costs | 0 | 0 |
Integration expenses | (1) | 0 |
Total costs of providing services | (2) | (9) |
Income from operations | (2) | (9) |
Income from Group undertakings | 0 | 0 |
Expenses due to Group undertakings | 0 | 0 |
Interest expense | (11) | (11) |
Other expense, net | (1) | (12) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | (14) | (32) |
Provision for income taxes | 0 | 0 |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | (14) | (32) |
Interest in earnings of associates, net of tax | 0 | 0 |
Equity account for subsidiaries | 252 | 242 |
NET INCOME | 238 | 210 |
Income attributable to non-controlling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | 238 | 210 |
The Other Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 0 | 0 |
Interest and other income | 0 | 0 |
Total revenues | 0 | 0 |
Salaries and benefits | 0 | 0 |
Other operating expenses | (35) | (14) |
Depreciation | (1) | (1) |
Amortization | 0 | 0 |
Restructuring costs | (4) | (14) |
Integration expenses | (12) | 0 |
Total costs of providing services | (52) | (29) |
Income from operations | (52) | (29) |
Income from Group undertakings | 121 | 54 |
Expenses due to Group undertakings | (14) | (8) |
Interest expense | (17) | (9) |
Other expense, net | 0 | 6 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 38 | 14 |
Provision for income taxes | 13 | 6 |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 51 | 20 |
Interest in earnings of associates, net of tax | 0 | 2 |
Equity account for subsidiaries | 199 | 215 |
NET INCOME | 250 | 237 |
Income attributable to non-controlling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | 250 | 237 |
The Issuer | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 7 | 4 |
Interest and other income | 0 | 0 |
Total revenues | 7 | 4 |
Salaries and benefits | (14) | (20) |
Other operating expenses | (58) | (2) |
Depreciation | (4) | (4) |
Amortization | 0 | 0 |
Restructuring costs | (9) | (5) |
Integration expenses | (6) | 0 |
Total costs of providing services | (91) | (31) |
Income from operations | (84) | (27) |
Income from Group undertakings | 54 | 56 |
Expenses due to Group undertakings | (43) | (44) |
Interest expense | (10) | (11) |
Other expense, net | 0 | 0 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | (83) | (26) |
Provision for income taxes | 28 | 8 |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | (55) | (18) |
Interest in earnings of associates, net of tax | 0 | 0 |
Equity account for subsidiaries | 14 | 66 |
NET INCOME | (41) | 48 |
Income attributable to non-controlling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | (41) | 48 |
Other | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 2,212 | 1,077 |
Interest and other income | 15 | 6 |
Total revenues | 2,227 | 1,083 |
Salaries and benefits | (1,182) | (547) |
Other operating expenses | (337) | (135) |
Depreciation | (38) | (17) |
Amortization | (161) | (14) |
Restructuring costs | (12) | (12) |
Integration expenses | (33) | 0 |
Total costs of providing services | (1,763) | (725) |
Income from operations | 464 | 358 |
Income from Group undertakings | 30 | 25 |
Expenses due to Group undertakings | (148) | (83) |
Interest expense | (8) | (2) |
Other expense, net | (17) | (1) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 321 | 297 |
Provision for income taxes | (59) | (70) |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 262 | 227 |
Interest in earnings of associates, net of tax | 1 | 14 |
Equity account for subsidiaries | 0 | 0 |
NET INCOME | 263 | 241 |
Income attributable to non-controlling interests | (7) | (4) |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | $ 256 | $ 237 |
Financial Information for Par81
Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Unaudited Condensed Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | $ 231 | $ 321 |
Less: Comprehensive (income) loss attributable to non-controlling interest | (9) | 3 |
Comprehensive income attributable to Willis Towers Watson | 222 | 324 |
Consolidating adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | (406) | (778) |
Less: Comprehensive (income) loss attributable to non-controlling interest | 0 | 0 |
Comprehensive income attributable to Willis Towers Watson | (406) | (778) |
Willis Towers Watson | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | 222 | 324 |
Less: Comprehensive (income) loss attributable to non-controlling interest | 0 | 0 |
Comprehensive income attributable to Willis Towers Watson | 222 | 324 |
The Other Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | 232 | 354 |
Less: Comprehensive (income) loss attributable to non-controlling interest | 0 | 0 |
Comprehensive income attributable to Willis Towers Watson | 232 | 354 |
The Issuer | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | (58) | 51 |
Less: Comprehensive (income) loss attributable to non-controlling interest | 0 | 0 |
Comprehensive income attributable to Willis Towers Watson | (58) | 51 |
Other | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | 241 | 370 |
Less: Comprehensive (income) loss attributable to non-controlling interest | (9) | 3 |
Comprehensive income attributable to Willis Towers Watson | $ 232 | $ 373 |
Financial Information for Par82
Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Unaudited Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 954 | $ 532 | $ 503 | $ 635 |
Fiduciary assets | 12,031 | 10,458 | ||
Accounts receivable, net | 2,268 | 1,258 | ||
Prepaid and other current assets | 326 | 255 | ||
Amounts due from group undertakings | 0 | 0 | ||
Total current assets | 15,579 | 12,503 | ||
Investments in subsidiaries | 0 | 0 | ||
Fixed assets, net | 790 | 563 | ||
Goodwill | 10,477 | 3,737 | ||
Other intangible assets, net | 5,086 | 1,115 | ||
Pension benefits assets | 749 | 623 | ||
Other non-current assets | 348 | 298 | ||
Non-current amounts due from group undertakings | 0 | 0 | ||
Total non-current assets | 17,450 | 6,336 | ||
TOTAL ASSETS | 33,029 | 18,839 | ||
Fiduciary liabilities | 12,031 | 10,458 | ||
Deferred revenue and accrued expenses | 1,109 | 752 | ||
Short-term debt and current portion of long-term debt | 1,144 | 988 | ||
Other current liabilities | 972 | 603 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total current liabilities | 15,256 | 12,801 | ||
Long-term debt | 2,767 | 2,278 | ||
Liability for pension benefits | 1,210 | 279 | ||
Deferred tax liabilities | 1,234 | 240 | ||
Provision for liabilities | 600 | 295 | ||
Investments in subsidiaries | 0 | |||
Other non-current liabilities | 605 | 533 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total non-current liabilities | 6,416 | 3,625 | ||
TOTAL LIABILITIES | 21,672 | 16,426 | ||
REDEEMABLE NONCONTROLLING INTEREST | 53 | 53 | ||
Total Willis Towers Watson shareholders’ equity | 11,151 | 2,229 | ||
Noncontrolling interests | 153 | 131 | ||
Total equity | 11,304 | 2,360 | 2,321 | 2,007 |
TOTAL LIABILITIES AND EQUITY | 33,029 | 18,839 | ||
Consolidating adjustments | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Fiduciary assets | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Prepaid and other current assets | (23) | (7) | ||
Amounts due from group undertakings | (16,040) | (7,188) | ||
Total current assets | (16,063) | (7,195) | ||
Investments in subsidiaries | (18,522) | (4,040) | ||
Fixed assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Pension benefits assets | 0 | 0 | ||
Other non-current assets | 0 | 0 | ||
Non-current amounts due from group undertakings | (1,716) | (1,303) | ||
Total non-current assets | (20,238) | (5,343) | ||
TOTAL ASSETS | (36,301) | (12,538) | ||
Fiduciary liabilities | 0 | 0 | ||
Deferred revenue and accrued expenses | 0 | 0 | ||
Short-term debt and current portion of long-term debt | 0 | 0 | ||
Other current liabilities | (23) | (7) | ||
Amounts due to group undertakings | (16,040) | (7,188) | ||
Total current liabilities | (16,063) | (7,195) | ||
Long-term debt | 0 | 0 | ||
Liability for pension benefits | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Provision for liabilities | 0 | 0 | ||
Investments in subsidiaries | (387) | |||
Other non-current liabilities | 0 | 0 | ||
Amounts due to group undertakings | (1,716) | (1,303) | ||
Total non-current liabilities | (1,716) | (1,690) | ||
TOTAL LIABILITIES | (17,779) | (8,885) | ||
REDEEMABLE NONCONTROLLING INTEREST | 0 | 0 | ||
Total Willis Towers Watson shareholders’ equity | (18,522) | (3,653) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (18,522) | (3,653) | ||
TOTAL LIABILITIES AND EQUITY | (36,301) | (12,538) | ||
Willis Towers Watson | Reportable Legal Entities | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 2 | 3 | 6 | 9 |
Fiduciary assets | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Prepaid and other current assets | 0 | 1 | ||
Amounts due from group undertakings | 7,721 | 3,423 | ||
Total current assets | 7,723 | 3,427 | ||
Investments in subsidiaries | 3,993 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Pension benefits assets | 0 | 0 | ||
Other non-current assets | 0 | 0 | ||
Non-current amounts due from group undertakings | 0 | 0 | ||
Total non-current assets | 3,993 | 0 | ||
TOTAL ASSETS | 11,716 | 3,427 | ||
Fiduciary liabilities | 0 | 0 | ||
Deferred revenue and accrued expenses | 1 | 1 | ||
Short-term debt and current portion of long-term debt | 0 | 300 | ||
Other current liabilities | 69 | 15 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total current liabilities | 70 | 316 | ||
Long-term debt | 495 | 495 | ||
Liability for pension benefits | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Provision for liabilities | 0 | 0 | ||
Investments in subsidiaries | 387 | |||
Other non-current liabilities | 0 | 0 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total non-current liabilities | 495 | 882 | ||
TOTAL LIABILITIES | 565 | 1,198 | ||
REDEEMABLE NONCONTROLLING INTEREST | 0 | 0 | ||
Total Willis Towers Watson shareholders’ equity | 11,151 | 2,229 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 11,151 | 2,229 | ||
TOTAL LIABILITIES AND EQUITY | 11,716 | 3,427 | ||
The Other Guarantors | Reportable Legal Entities | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 2 | 0 | 2 |
Fiduciary assets | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Prepaid and other current assets | 57 | 49 | ||
Amounts due from group undertakings | 5,644 | 1,684 | ||
Total current assets | 5,701 | 1,735 | ||
Investments in subsidiaries | 8,527 | 3,208 | ||
Fixed assets, net | 27 | 23 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Pension benefits assets | 0 | 0 | ||
Other non-current assets | 4 | 8 | ||
Non-current amounts due from group undertakings | 918 | 518 | ||
Total non-current assets | 9,476 | 3,757 | ||
TOTAL ASSETS | 15,177 | 5,492 | ||
Fiduciary liabilities | 0 | 0 | ||
Deferred revenue and accrued expenses | 21 | 13 | ||
Short-term debt and current portion of long-term debt | 638 | 609 | ||
Other current liabilities | 46 | 38 | ||
Amounts due to group undertakings | 8,754 | 4,141 | ||
Total current liabilities | 9,459 | 4,801 | ||
Long-term debt | 1,853 | 1,203 | ||
Liability for pension benefits | 0 | 0 | ||
Deferred tax liabilities | 2 | 1 | ||
Provision for liabilities | 0 | 0 | ||
Investments in subsidiaries | 0 | |||
Other non-current liabilities | 25 | 21 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total non-current liabilities | 1,880 | 1,225 | ||
TOTAL LIABILITIES | 11,339 | 6,026 | ||
REDEEMABLE NONCONTROLLING INTEREST | 0 | 0 | ||
Total Willis Towers Watson shareholders’ equity | 3,838 | (534) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 3,838 | (534) | ||
TOTAL LIABILITIES AND EQUITY | 15,177 | 5,492 | ||
The Issuer | Reportable Legal Entities | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Fiduciary assets | 0 | 0 | ||
Accounts receivable, net | 6 | 7 | ||
Prepaid and other current assets | 22 | 18 | ||
Amounts due from group undertakings | 910 | 822 | ||
Total current assets | 938 | 847 | ||
Investments in subsidiaries | 6,002 | 832 | ||
Fixed assets, net | 35 | 35 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Pension benefits assets | 0 | 0 | ||
Other non-current assets | 54 | 2 | ||
Non-current amounts due from group undertakings | 798 | 785 | ||
Total non-current assets | 6,889 | 1,654 | ||
TOTAL ASSETS | 7,827 | 2,501 | ||
Fiduciary liabilities | 0 | 0 | ||
Deferred revenue and accrued expenses | 17 | 55 | ||
Short-term debt and current portion of long-term debt | 394 | 0 | ||
Other current liabilities | 16 | 23 | ||
Amounts due to group undertakings | 1,717 | 1,545 | ||
Total current liabilities | 2,144 | 1,623 | ||
Long-term debt | 187 | 580 | ||
Liability for pension benefits | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Provision for liabilities | 120 | 0 | ||
Investments in subsidiaries | 0 | |||
Other non-current liabilities | 15 | 15 | ||
Amounts due to group undertakings | 518 | 518 | ||
Total non-current liabilities | 840 | 1,113 | ||
TOTAL LIABILITIES | 2,984 | 2,736 | ||
REDEEMABLE NONCONTROLLING INTEREST | 0 | 0 | ||
Total Willis Towers Watson shareholders’ equity | 4,843 | (235) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 4,843 | (235) | ||
TOTAL LIABILITIES AND EQUITY | 7,827 | 2,501 | ||
Other | Reportable Legal Entities | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 952 | 527 | $ 497 | $ 624 |
Fiduciary assets | 12,031 | 10,458 | ||
Accounts receivable, net | 2,262 | 1,251 | ||
Prepaid and other current assets | 270 | 194 | ||
Amounts due from group undertakings | 1,765 | 1,259 | ||
Total current assets | 17,280 | 13,689 | ||
Investments in subsidiaries | 0 | 0 | ||
Fixed assets, net | 728 | 505 | ||
Goodwill | 10,477 | 3,737 | ||
Other intangible assets, net | 5,086 | 1,115 | ||
Pension benefits assets | 749 | 623 | ||
Other non-current assets | 290 | 288 | ||
Non-current amounts due from group undertakings | 0 | 0 | ||
Total non-current assets | 17,330 | 6,268 | ||
TOTAL ASSETS | 34,610 | 19,957 | ||
Fiduciary liabilities | 12,031 | 10,458 | ||
Deferred revenue and accrued expenses | 1,070 | 683 | ||
Short-term debt and current portion of long-term debt | 112 | 79 | ||
Other current liabilities | 864 | 534 | ||
Amounts due to group undertakings | 5,569 | 1,502 | ||
Total current liabilities | 19,646 | 13,256 | ||
Long-term debt | 232 | 0 | ||
Liability for pension benefits | 1,210 | 279 | ||
Deferred tax liabilities | 1,232 | 239 | ||
Provision for liabilities | 480 | 295 | ||
Investments in subsidiaries | 0 | |||
Other non-current liabilities | 565 | 497 | ||
Amounts due to group undertakings | 1,198 | 785 | ||
Total non-current liabilities | 4,917 | 2,095 | ||
TOTAL LIABILITIES | 24,563 | 15,351 | ||
REDEEMABLE NONCONTROLLING INTEREST | 53 | 53 | ||
Total Willis Towers Watson shareholders’ equity | 9,841 | 4,422 | ||
Noncontrolling interests | 153 | 131 | ||
Total equity | 9,994 | 4,553 | ||
TOTAL LIABILITIES AND EQUITY | $ 34,610 | $ 19,957 |
Financial Information for Par83
Financial Information for Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Unaudited Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | $ 118 | $ (64) |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | ||
Additions to fixed assets and software for internal use | (48) | (17) |
Capitalized software costs | (18) | 0 |
Acquisitions of operations, net of cash acquired | 469 | (8) |
Redemptions of held-to-maturity investments | 11 | 0 |
Sales and redemptions of available for sale securities | 9 | 0 |
Other, net | (6) | 17 |
Proceeds from intercompany investing activities | 0 | 0 |
Repayments of intercompany investing activities | 0 | 0 |
Reduction in investment in subsidiaries | 0 | |
Additional investment in subsidiaries | 0 | |
Net cash from (used in) investing activities | 417 | (8) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt issuance costs | 0 | (1) |
Net payments on revolving credit facility | (338) | 0 |
Senior notes issued | 997 | 0 |
Proceeds from issue of other debt | 400 | 0 |
Repayments of debt | (1,181) | (4) |
Repurchase of shares | 0 | (15) |
Proceeds from issuance of shares and excess tax benefit | 11 | 38 |
Dividends paid | 0 | (54) |
Acquisitions of and dividends paid to noncontrolling interests | (4) | (3) |
Proceeds from intercompany financing activities | 0 | 0 |
Repayments of intercompany financing activities | 0 | 0 |
Net cash provided by (used in) financing activities | (115) | (39) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 420 | (111) |
Effect of exchange rate changes on cash and cash equivalents | 2 | (21) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 532 | 635 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 954 | 503 |
Consolidating adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | 0 | 0 |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | ||
Additions to fixed assets and software for internal use | 0 | 0 |
Capitalized software costs | 0 | |
Acquisitions of operations, net of cash acquired | 0 | 0 |
Redemptions of held-to-maturity investments | 0 | |
Sales and redemptions of available for sale securities | 0 | |
Other, net | 0 | 0 |
Proceeds from intercompany investing activities | (9) | (99) |
Repayments of intercompany investing activities | 9,095 | 37 |
Reduction in investment in subsidiaries | (8,200) | |
Additional investment in subsidiaries | 8,200 | |
Net cash from (used in) investing activities | 9,086 | (62) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt issuance costs | 0 | |
Net payments on revolving credit facility | 0 | |
Senior notes issued | 0 | |
Proceeds from issue of other debt | 0 | |
Repayments of debt | 0 | 0 |
Repurchase of shares | 0 | |
Proceeds from issuance of shares and excess tax benefit | 0 | 0 |
Dividends paid | 0 | |
Acquisitions of and dividends paid to noncontrolling interests | 0 | 0 |
Proceeds from intercompany financing activities | (9,095) | (37) |
Repayments of intercompany financing activities | 9 | 99 |
Net cash provided by (used in) financing activities | (9,086) | 62 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 |
Willis Towers Watson | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | (4) | (20) |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | ||
Additions to fixed assets and software for internal use | 0 | 0 |
Capitalized software costs | 0 | |
Acquisitions of operations, net of cash acquired | 0 | 0 |
Redemptions of held-to-maturity investments | 0 | |
Sales and redemptions of available for sale securities | 0 | |
Other, net | 0 | 0 |
Proceeds from intercompany investing activities | 0 | 51 |
Repayments of intercompany investing activities | (4,308) | 0 |
Reduction in investment in subsidiaries | 4,600 | |
Additional investment in subsidiaries | 0 | |
Net cash from (used in) investing activities | 292 | 51 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt issuance costs | 0 | |
Net payments on revolving credit facility | 0 | |
Senior notes issued | 0 | |
Proceeds from issue of other debt | 0 | |
Repayments of debt | (300) | 0 |
Repurchase of shares | (15) | |
Proceeds from issuance of shares and excess tax benefit | 11 | 35 |
Dividends paid | (54) | |
Acquisitions of and dividends paid to noncontrolling interests | 0 | 0 |
Proceeds from intercompany financing activities | 0 | 0 |
Repayments of intercompany financing activities | 0 | 0 |
Net cash provided by (used in) financing activities | (289) | (34) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (1) | (3) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3 | 9 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2 | 6 |
The Other Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | (47) | 13 |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | ||
Additions to fixed assets and software for internal use | (5) | (3) |
Capitalized software costs | 0 | |
Acquisitions of operations, net of cash acquired | 0 | 0 |
Redemptions of held-to-maturity investments | 0 | |
Sales and redemptions of available for sale securities | 0 | |
Other, net | 0 | 0 |
Proceeds from intercompany investing activities | 0 | 0 |
Repayments of intercompany investing activities | (4,227) | (11) |
Reduction in investment in subsidiaries | 3,600 | |
Additional investment in subsidiaries | (4,600) | |
Net cash from (used in) investing activities | (5,232) | (14) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt issuance costs | 0 | |
Net payments on revolving credit facility | (338) | |
Senior notes issued | 997 | |
Proceeds from issue of other debt | 400 | |
Repayments of debt | (406) | (4) |
Repurchase of shares | 0 | |
Proceeds from issuance of shares and excess tax benefit | 0 | 0 |
Dividends paid | 0 | |
Acquisitions of and dividends paid to noncontrolling interests | 0 | 0 |
Proceeds from intercompany financing activities | 4,633 | 26 |
Repayments of intercompany financing activities | (9) | (23) |
Net cash provided by (used in) financing activities | 5,277 | (1) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (2) | (2) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2 | 2 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 |
The Issuer | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | (191) | (47) |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | ||
Additions to fixed assets and software for internal use | (4) | (1) |
Capitalized software costs | 0 | |
Acquisitions of operations, net of cash acquired | 0 | 0 |
Redemptions of held-to-maturity investments | 0 | |
Sales and redemptions of available for sale securities | 0 | |
Other, net | 0 | 0 |
Proceeds from intercompany investing activities | 0 | 48 |
Repayments of intercompany investing activities | 0 | 0 |
Reduction in investment in subsidiaries | 0 | |
Additional investment in subsidiaries | 0 | |
Net cash from (used in) investing activities | (4) | 47 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt issuance costs | 0 | |
Net payments on revolving credit facility | 0 | |
Senior notes issued | 0 | |
Proceeds from issue of other debt | 0 | |
Repayments of debt | 0 | 0 |
Repurchase of shares | 0 | |
Proceeds from issuance of shares and excess tax benefit | 0 | 0 |
Dividends paid | 0 | |
Acquisitions of and dividends paid to noncontrolling interests | 0 | 0 |
Proceeds from intercompany financing activities | 195 | 0 |
Repayments of intercompany financing activities | 0 | 0 |
Net cash provided by (used in) financing activities | 195 | 0 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 |
Other | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | 360 | (10) |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | ||
Additions to fixed assets and software for internal use | (39) | (13) |
Capitalized software costs | (18) | |
Acquisitions of operations, net of cash acquired | 469 | (8) |
Redemptions of held-to-maturity investments | 11 | |
Sales and redemptions of available for sale securities | 9 | |
Other, net | (6) | 17 |
Proceeds from intercompany investing activities | 9 | 0 |
Repayments of intercompany investing activities | (560) | (26) |
Reduction in investment in subsidiaries | 0 | |
Additional investment in subsidiaries | (3,600) | |
Net cash from (used in) investing activities | (3,725) | (30) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt issuance costs | (1) | |
Net payments on revolving credit facility | 0 | |
Senior notes issued | 0 | |
Proceeds from issue of other debt | 0 | |
Repayments of debt | (475) | 0 |
Repurchase of shares | 0 | |
Proceeds from issuance of shares and excess tax benefit | 0 | 3 |
Dividends paid | 0 | |
Acquisitions of and dividends paid to noncontrolling interests | (4) | (3) |
Proceeds from intercompany financing activities | 4,267 | 11 |
Repayments of intercompany financing activities | 0 | (76) |
Net cash provided by (used in) financing activities | 3,788 | (66) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 423 | (106) |
Effect of exchange rate changes on cash and cash equivalents | 2 | (21) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 527 | 624 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 952 | $ 497 |
Financial Information for Par84
Financial Information for Parent Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Narrative (Details) - USD ($) | Mar. 15, 2016 | Mar. 31, 2016 | Mar. 17, 2011 |
Senior Notes | 5.750% senior notes due 2021 | |||
Debt Instrument [Line Items] | |||
Face amount of note | $ 800,000,000 | ||
Long-term debt | $ 500,000,000 | ||
Repayments of debt | $ 300,000,000 | ||
The Guarantors | |||
Debt Instrument [Line Items] | |||
Subsidiary, ownership percentage by parent | 100.00% |
Financial Information for Par85
Financial Information for Parent Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Unaudited Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | $ 2,219 | $ 1,081 |
Interest and other income | 15 | 6 |
Total revenues | 2,234 | 1,087 |
Salaries and benefits | (1,196) | (567) |
Other operating expenses | (431) | (160) |
Depreciation | (43) | (22) |
Amortization | (161) | (14) |
Restructuring costs | (25) | (31) |
Integration expenses | (52) | 0 |
Total costs of providing services | (1,908) | (794) |
Income from operations | 326 | 293 |
Income from Group undertakings | 0 | 0 |
Expenses due to Group undertakings | 0 | 0 |
Interest expense | (46) | (33) |
Other expense, net | (18) | (6) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 262 | 254 |
Provision for income taxes | (18) | (56) |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 244 | 198 |
Interest in earnings of associates, net of tax | 1 | 16 |
Equity account for subsidiaries | 0 | 0 |
NET INCOME | 245 | 214 |
Income attributable to non-controlling interests | (7) | (4) |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | 238 | 210 |
Consolidating adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 0 | 0 |
Interest and other income | 0 | 0 |
Total revenues | 0 | 0 |
Salaries and benefits | 0 | 0 |
Other operating expenses | 0 | 0 |
Depreciation | 0 | 0 |
Amortization | 0 | 0 |
Restructuring costs | 0 | 0 |
Integration expenses | 0 | 0 |
Total costs of providing services | 0 | 0 |
Income from operations | 0 | 0 |
Income from Group undertakings | (177) | (108) |
Expenses due to Group undertakings | 177 | 108 |
Interest expense | 0 | 0 |
Other expense, net | 0 | 1 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 0 | 1 |
Provision for income taxes | 0 | 0 |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 0 | 1 |
Interest in earnings of associates, net of tax | 0 | 0 |
Equity account for subsidiaries | (506) | (475) |
NET INCOME | (506) | (474) |
Income attributable to non-controlling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | (506) | (474) |
Willis Towers Watson — the Parent Issuer | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 0 | 0 |
Interest and other income | 0 | 0 |
Total revenues | 0 | 0 |
Salaries and benefits | 0 | 0 |
Other operating expenses | (1) | (9) |
Depreciation | 0 | 0 |
Amortization | 0 | 0 |
Restructuring costs | 0 | 0 |
Integration expenses | (1) | 0 |
Total costs of providing services | (2) | (9) |
Income from operations | (2) | (9) |
Income from Group undertakings | 0 | 0 |
Expenses due to Group undertakings | 0 | 0 |
Interest expense | (11) | (11) |
Other expense, net | (1) | (12) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | (14) | (32) |
Provision for income taxes | 0 | 0 |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | (14) | (32) |
Interest in earnings of associates, net of tax | 0 | 0 |
Equity account for subsidiaries | 252 | 242 |
NET INCOME | 238 | 210 |
Income attributable to non-controlling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | 238 | 210 |
The Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 7 | 4 |
Interest and other income | 0 | 0 |
Total revenues | 7 | 4 |
Salaries and benefits | (14) | (20) |
Other operating expenses | (93) | (16) |
Depreciation | (5) | (5) |
Amortization | 0 | 0 |
Restructuring costs | (13) | (19) |
Integration expenses | (18) | 0 |
Total costs of providing services | (143) | (60) |
Income from operations | (136) | (56) |
Income from Group undertakings | 147 | 83 |
Expenses due to Group undertakings | (29) | (25) |
Interest expense | (27) | (20) |
Other expense, net | 0 | 6 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | (45) | (12) |
Provision for income taxes | 41 | 14 |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | (4) | 2 |
Interest in earnings of associates, net of tax | 0 | 2 |
Equity account for subsidiaries | 254 | 233 |
NET INCOME | 250 | 237 |
Income attributable to non-controlling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | 250 | 237 |
Other | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 2,212 | 1,077 |
Interest and other income | 15 | 6 |
Total revenues | 2,227 | 1,083 |
Salaries and benefits | (1,182) | (547) |
Other operating expenses | (337) | (135) |
Depreciation | (38) | (17) |
Amortization | (161) | (14) |
Restructuring costs | (12) | (12) |
Integration expenses | (33) | 0 |
Total costs of providing services | (1,763) | (725) |
Income from operations | 464 | 358 |
Income from Group undertakings | 30 | 25 |
Expenses due to Group undertakings | (148) | (83) |
Interest expense | (8) | (2) |
Other expense, net | (17) | (1) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 321 | 297 |
Provision for income taxes | (59) | (70) |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 262 | 227 |
Interest in earnings of associates, net of tax | 1 | 14 |
Equity account for subsidiaries | 0 | 0 |
NET INCOME | 263 | 241 |
Income attributable to non-controlling interests | (7) | (4) |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | $ 256 | $ 237 |
Financial Information for Par86
Financial Information for Parent Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Unaudited Condensed Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | $ 231 | $ 321 |
Less: Comprehensive (income) loss attributable to non-controlling interest | (9) | 3 |
Comprehensive income attributable to Willis Towers Watson | 222 | 324 |
Consolidating adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | (464) | (727) |
Less: Comprehensive (income) loss attributable to non-controlling interest | 0 | 0 |
Comprehensive income attributable to Willis Towers Watson | (464) | (727) |
Willis Towers Watson — the Parent Issuer | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | 222 | 324 |
Less: Comprehensive (income) loss attributable to non-controlling interest | 0 | 0 |
Comprehensive income attributable to Willis Towers Watson | 222 | 324 |
The Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | 232 | 354 |
Less: Comprehensive (income) loss attributable to non-controlling interest | 0 | 0 |
Comprehensive income attributable to Willis Towers Watson | 232 | 354 |
Other | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | 241 | 370 |
Less: Comprehensive (income) loss attributable to non-controlling interest | (9) | 3 |
Comprehensive income attributable to Willis Towers Watson | $ 232 | $ 373 |
Financial Information for Par87
Financial Information for Parent Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Unaudited Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 954 | $ 532 | $ 503 | $ 635 |
Fiduciary assets | 12,031 | 10,458 | ||
Accounts receivable, net | 2,268 | 1,258 | ||
Prepaid and other current assets | 326 | 255 | ||
Amounts due from group undertakings | 0 | 0 | ||
Total current assets | 15,579 | 12,503 | ||
Investments in subsidiaries | 0 | 0 | ||
Fixed assets, net | 790 | 563 | ||
Goodwill | 10,477 | 3,737 | ||
Other intangible assets, net | 5,086 | 1,115 | ||
Pension benefits assets | 749 | 623 | ||
Other non-current assets | 348 | 298 | ||
Non-current amounts due from group undertakings | 0 | 0 | ||
Total non-current assets | 17,450 | 6,336 | ||
TOTAL ASSETS | 33,029 | 18,839 | ||
Fiduciary liabilities | 12,031 | 10,458 | ||
Deferred revenue and accrued expenses | 1,109 | 752 | ||
Short-term debt and current portion of long-term debt | 1,144 | 988 | ||
Other current liabilities | 972 | 603 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total current liabilities | 15,256 | 12,801 | ||
Investments in subsidiaries | 0 | |||
Long-term debt | 2,767 | 2,278 | ||
Liability for pension benefits | 1,210 | 279 | ||
Deferred tax liabilities | 1,234 | 240 | ||
Provision for liabilities | 600 | 295 | ||
Other non-current liabilities | 605 | 533 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total non-current liabilities | 6,416 | 3,625 | ||
TOTAL LIABILITIES | 21,672 | 16,426 | ||
REDEEMABLE NONCONTROLLING INTEREST | 53 | 53 | ||
Total Willis Towers Watson shareholders’ equity | 11,151 | 2,229 | ||
Noncontrolling interests | 153 | 131 | ||
Total equity | 11,304 | 2,360 | 2,321 | 2,007 |
TOTAL LIABILITIES AND EQUITY | 33,029 | 18,839 | ||
Consolidating adjustments | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Fiduciary assets | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Prepaid and other current assets | (23) | (7) | ||
Amounts due from group undertakings | (14,780) | (5,939) | ||
Total current assets | (14,803) | (5,946) | ||
Investments in subsidiaries | (13,679) | (4,275) | ||
Fixed assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Pension benefits assets | 0 | 0 | ||
Other non-current assets | 0 | 0 | ||
Non-current amounts due from group undertakings | (1,198) | (785) | ||
Total non-current assets | (14,877) | (5,060) | ||
TOTAL ASSETS | (29,680) | (11,006) | ||
Fiduciary liabilities | 0 | 0 | ||
Deferred revenue and accrued expenses | 0 | 0 | ||
Short-term debt and current portion of long-term debt | 0 | 0 | ||
Other current liabilities | (23) | (7) | ||
Amounts due to group undertakings | (14,780) | (5,939) | ||
Total current liabilities | (14,803) | (5,946) | ||
Investments in subsidiaries | (387) | |||
Long-term debt | 0 | 0 | ||
Liability for pension benefits | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Provision for liabilities | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
Amounts due to group undertakings | (1,198) | (785) | ||
Total non-current liabilities | (1,198) | (1,172) | ||
TOTAL LIABILITIES | (16,001) | (7,118) | ||
REDEEMABLE NONCONTROLLING INTEREST | 0 | 0 | ||
Total Willis Towers Watson shareholders’ equity | (13,679) | (3,888) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (13,679) | (3,888) | ||
TOTAL LIABILITIES AND EQUITY | (29,680) | (11,006) | ||
Willis Towers Watson — the Parent Issuer | Reportable Legal Entities | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 2 | 3 | 6 | 9 |
Fiduciary assets | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Prepaid and other current assets | 0 | 1 | ||
Amounts due from group undertakings | 7,721 | 3,423 | ||
Total current assets | 7,723 | 3,427 | ||
Investments in subsidiaries | 3,993 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Pension benefits assets | 0 | 0 | ||
Other non-current assets | 0 | 0 | ||
Non-current amounts due from group undertakings | 0 | 0 | ||
Total non-current assets | 3,993 | 0 | ||
TOTAL ASSETS | 11,716 | 3,427 | ||
Fiduciary liabilities | 0 | 0 | ||
Deferred revenue and accrued expenses | 1 | 1 | ||
Short-term debt and current portion of long-term debt | 0 | 300 | ||
Other current liabilities | 69 | 15 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total current liabilities | 70 | 316 | ||
Investments in subsidiaries | 387 | |||
Long-term debt | 495 | 495 | ||
Liability for pension benefits | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Provision for liabilities | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total non-current liabilities | 495 | 882 | ||
TOTAL LIABILITIES | 565 | 1,198 | ||
REDEEMABLE NONCONTROLLING INTEREST | 0 | 0 | ||
Total Willis Towers Watson shareholders’ equity | 11,151 | 2,229 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 11,151 | 2,229 | ||
TOTAL LIABILITIES AND EQUITY | 11,716 | 3,427 | ||
The Guarantors | Reportable Legal Entities | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 2 | 0 | 2 |
Fiduciary assets | 0 | 0 | ||
Accounts receivable, net | 6 | 7 | ||
Prepaid and other current assets | 79 | 67 | ||
Amounts due from group undertakings | 5,294 | 1,257 | ||
Total current assets | 5,379 | 1,333 | ||
Investments in subsidiaries | 9,686 | 4,275 | ||
Fixed assets, net | 62 | 58 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Pension benefits assets | 0 | 0 | ||
Other non-current assets | 58 | 10 | ||
Non-current amounts due from group undertakings | 1,198 | 785 | ||
Total non-current assets | 11,004 | 5,128 | ||
TOTAL ASSETS | 16,383 | 6,461 | ||
Fiduciary liabilities | 0 | 0 | ||
Deferred revenue and accrued expenses | 38 | 68 | ||
Short-term debt and current portion of long-term debt | 1,032 | 609 | ||
Other current liabilities | 62 | 61 | ||
Amounts due to group undertakings | 9,211 | 4,437 | ||
Total current liabilities | 10,343 | 5,175 | ||
Investments in subsidiaries | 0 | |||
Long-term debt | 2,040 | 1,783 | ||
Liability for pension benefits | 0 | 0 | ||
Deferred tax liabilities | 2 | 1 | ||
Provision for liabilities | 120 | 0 | ||
Other non-current liabilities | 40 | 36 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total non-current liabilities | 2,202 | 1,820 | ||
TOTAL LIABILITIES | 12,545 | 6,995 | ||
REDEEMABLE NONCONTROLLING INTEREST | 0 | 0 | ||
Total Willis Towers Watson shareholders’ equity | 3,838 | (534) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 3,838 | (534) | ||
TOTAL LIABILITIES AND EQUITY | 16,383 | 6,461 | ||
Other | Reportable Legal Entities | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 952 | 527 | $ 497 | $ 624 |
Fiduciary assets | 12,031 | 10,458 | ||
Accounts receivable, net | 2,262 | 1,251 | ||
Prepaid and other current assets | 270 | 194 | ||
Amounts due from group undertakings | 1,765 | 1,259 | ||
Total current assets | 17,280 | 13,689 | ||
Investments in subsidiaries | 0 | 0 | ||
Fixed assets, net | 728 | 505 | ||
Goodwill | 10,477 | 3,737 | ||
Other intangible assets, net | 5,086 | 1,115 | ||
Pension benefits assets | 749 | 623 | ||
Other non-current assets | 290 | 288 | ||
Non-current amounts due from group undertakings | 0 | 0 | ||
Total non-current assets | 17,330 | 6,268 | ||
TOTAL ASSETS | 34,610 | 19,957 | ||
Fiduciary liabilities | 12,031 | 10,458 | ||
Deferred revenue and accrued expenses | 1,070 | 683 | ||
Short-term debt and current portion of long-term debt | 112 | 79 | ||
Other current liabilities | 864 | 534 | ||
Amounts due to group undertakings | 5,569 | 1,502 | ||
Total current liabilities | 19,646 | 13,256 | ||
Investments in subsidiaries | 0 | |||
Long-term debt | 232 | 0 | ||
Liability for pension benefits | 1,210 | 279 | ||
Deferred tax liabilities | 1,232 | 239 | ||
Provision for liabilities | 480 | 295 | ||
Other non-current liabilities | 565 | 497 | ||
Amounts due to group undertakings | 1,198 | 785 | ||
Total non-current liabilities | 4,917 | 2,095 | ||
TOTAL LIABILITIES | 24,563 | 15,351 | ||
REDEEMABLE NONCONTROLLING INTEREST | 53 | 53 | ||
Total Willis Towers Watson shareholders’ equity | 9,841 | 4,422 | ||
Noncontrolling interests | 153 | 131 | ||
Total equity | 9,994 | 4,553 | ||
TOTAL LIABILITIES AND EQUITY | $ 34,610 | $ 19,957 |
Financial Information for Par88
Financial Information for Parent Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Unaudited Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | $ 118 | $ (64) |
Additions to fixed assets and software for internal use | (48) | (17) |
Capitalized software costs | (18) | 0 |
Acquisitions of operations, net of cash acquired | 469 | (8) |
Redemptions of held-to-maturity investments | 11 | 0 |
Sales and redemptions of available for sale securities | 9 | 0 |
Other, net | (6) | 17 |
Proceeds from intercompany investing activities | 0 | 0 |
Repayments of intercompany investing activities | 0 | 0 |
Reduction in investment in subsidiaries | 0 | |
Additional investment in subsidiaries | 0 | |
Net cash from (used in) investing activities | 417 | (8) |
Debt issuance costs | 0 | (1) |
Net payments on revolving credit facility | (338) | 0 |
Senior notes issued | 997 | 0 |
Proceeds from issue of other debt | 400 | 0 |
Repayments of debt | (1,181) | (4) |
Repurchase of shares | 0 | (15) |
Proceeds from issuance of shares and excess tax benefit | 11 | 38 |
Dividends paid | 0 | (54) |
Acquisitions of and dividends paid to noncontrolling interests | (4) | (3) |
Proceeds from intercompany financing activities | 0 | 0 |
Repayments of intercompany financing activities | 0 | 0 |
Net cash provided by (used in) financing activities | (115) | (39) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 420 | (111) |
Effect of exchange rate changes on cash and cash equivalents | 2 | (21) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 532 | 635 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 954 | 503 |
Consolidating adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | 0 | 0 |
Additions to fixed assets and software for internal use | 0 | 0 |
Capitalized software costs | 0 | |
Acquisitions of operations, net of cash acquired | 0 | 0 |
Redemptions of held-to-maturity investments | 0 | |
Sales and redemptions of available for sale securities | 0 | |
Other, net | 0 | 0 |
Proceeds from intercompany investing activities | (9) | (99) |
Repayments of intercompany investing activities | 9,095 | 37 |
Reduction in investment in subsidiaries | (8,200) | |
Additional investment in subsidiaries | 8,200 | |
Net cash from (used in) investing activities | 9,086 | (62) |
Debt issuance costs | 0 | |
Net payments on revolving credit facility | 0 | |
Senior notes issued | 0 | |
Proceeds from issue of other debt | 0 | |
Repayments of debt | 0 | 0 |
Repurchase of shares | 0 | |
Proceeds from issuance of shares and excess tax benefit | 0 | 0 |
Dividends paid | 0 | |
Acquisitions of and dividends paid to noncontrolling interests | 0 | 0 |
Proceeds from intercompany financing activities | (9,095) | (37) |
Repayments of intercompany financing activities | 9 | 99 |
Net cash provided by (used in) financing activities | (9,086) | 62 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 |
Willis Towers Watson — the Parent Issuer | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | (4) | (20) |
Additions to fixed assets and software for internal use | 0 | 0 |
Capitalized software costs | 0 | |
Acquisitions of operations, net of cash acquired | 0 | 0 |
Redemptions of held-to-maturity investments | 0 | |
Sales and redemptions of available for sale securities | 0 | |
Other, net | 0 | 0 |
Proceeds from intercompany investing activities | 0 | 51 |
Repayments of intercompany investing activities | (4,308) | 0 |
Reduction in investment in subsidiaries | 4,600 | |
Additional investment in subsidiaries | 0 | |
Net cash from (used in) investing activities | 292 | 51 |
Debt issuance costs | 0 | |
Net payments on revolving credit facility | 0 | |
Senior notes issued | 0 | |
Proceeds from issue of other debt | 0 | |
Repayments of debt | (300) | 0 |
Repurchase of shares | (15) | |
Proceeds from issuance of shares and excess tax benefit | 11 | 35 |
Dividends paid | (54) | |
Acquisitions of and dividends paid to noncontrolling interests | 0 | 0 |
Proceeds from intercompany financing activities | 0 | 0 |
Repayments of intercompany financing activities | 0 | 0 |
Net cash provided by (used in) financing activities | (289) | (34) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (1) | (3) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3 | 9 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2 | 6 |
The Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | (238) | (34) |
Additions to fixed assets and software for internal use | (9) | (4) |
Capitalized software costs | 0 | |
Acquisitions of operations, net of cash acquired | 0 | 0 |
Redemptions of held-to-maturity investments | 0 | |
Sales and redemptions of available for sale securities | 0 | |
Other, net | 0 | 0 |
Proceeds from intercompany investing activities | 0 | 48 |
Repayments of intercompany investing activities | (4,227) | (11) |
Reduction in investment in subsidiaries | 3,600 | |
Additional investment in subsidiaries | (4,600) | |
Net cash from (used in) investing activities | (5,236) | 33 |
Debt issuance costs | 0 | |
Net payments on revolving credit facility | (338) | |
Senior notes issued | 997 | |
Proceeds from issue of other debt | 400 | |
Repayments of debt | (406) | (4) |
Repurchase of shares | 0 | |
Proceeds from issuance of shares and excess tax benefit | 0 | 0 |
Dividends paid | 0 | |
Acquisitions of and dividends paid to noncontrolling interests | 0 | 0 |
Proceeds from intercompany financing activities | 4,828 | 26 |
Repayments of intercompany financing activities | (9) | (23) |
Net cash provided by (used in) financing activities | 5,472 | (1) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (2) | (2) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2 | 2 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 |
Other | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | 360 | (10) |
Additions to fixed assets and software for internal use | (39) | (13) |
Capitalized software costs | (18) | |
Acquisitions of operations, net of cash acquired | 469 | (8) |
Redemptions of held-to-maturity investments | 11 | |
Sales and redemptions of available for sale securities | 9 | |
Other, net | (6) | 17 |
Proceeds from intercompany investing activities | 9 | 0 |
Repayments of intercompany investing activities | (560) | (26) |
Reduction in investment in subsidiaries | 0 | |
Additional investment in subsidiaries | (3,600) | |
Net cash from (used in) investing activities | (3,725) | (30) |
Debt issuance costs | (1) | |
Net payments on revolving credit facility | 0 | |
Senior notes issued | 0 | |
Proceeds from issue of other debt | 0 | |
Repayments of debt | (475) | 0 |
Repurchase of shares | 0 | |
Proceeds from issuance of shares and excess tax benefit | 0 | 3 |
Dividends paid | 0 | |
Acquisitions of and dividends paid to noncontrolling interests | (4) | (3) |
Proceeds from intercompany financing activities | 4,267 | 11 |
Repayments of intercompany financing activities | 0 | (76) |
Net cash provided by (used in) financing activities | 3,788 | (66) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 423 | (106) |
Effect of exchange rate changes on cash and cash equivalents | 2 | (21) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 527 | 624 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 952 | $ 497 |
Financial Information for Iss89
Financial Information for Issuer, Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Narrative (Details) - USD ($) | Mar. 31, 2016 | Mar. 15, 2016 | Aug. 15, 2013 |
Trinity Acquisition plc | Senior Notes | |||
Debt Instrument [Line Items] | |||
Face amount of note | $ 1,525,000,000 | $ 1,000,000,000 | $ 525,000,000 |
The Other Guarantors | |||
Debt Instrument [Line Items] | |||
Subsidiary, ownership percentage by parent | 100.00% |
Financial Information for Iss90
Financial Information for Issuer, Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Unaudited Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | $ 2,219 | $ 1,081 |
Interest and other income | 15 | 6 |
Total revenues | 2,234 | 1,087 |
Salaries and benefits | (1,196) | (567) |
Other operating expenses | (431) | (160) |
Depreciation | (43) | (22) |
Amortization | (161) | (14) |
Restructuring costs | (25) | (31) |
Integration expenses | (52) | 0 |
Total costs of providing services | (1,908) | (794) |
Income from operations | 326 | 293 |
Income from Group undertakings | 0 | 0 |
Expenses due to Group undertakings | 0 | 0 |
Interest expense | (46) | (33) |
Other expense, net | (18) | (6) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 262 | 254 |
Provision for income taxes | (18) | (56) |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 244 | 198 |
Interest in earnings of associates, net of tax | 1 | 16 |
Equity account for subsidiaries | 0 | 0 |
NET INCOME | 245 | 214 |
Income attributable to non-controlling interests | (7) | (4) |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | 238 | 210 |
Consolidating adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 0 | 0 |
Interest and other income | 0 | 0 |
Total revenues | 0 | 0 |
Salaries and benefits | 0 | 0 |
Other operating expenses | 0 | 0 |
Depreciation | 0 | 0 |
Amortization | 0 | 0 |
Restructuring costs | 0 | 0 |
Integration expenses | 0 | 0 |
Total costs of providing services | 0 | 0 |
Income from operations | 0 | 0 |
Income from Group undertakings | (207) | (137) |
Expenses due to Group undertakings | 207 | 137 |
Interest expense | 0 | 0 |
Other expense, net | 0 | 1 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 0 | 1 |
Provision for income taxes | 0 | 0 |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 0 | 1 |
Interest in earnings of associates, net of tax | 0 | 0 |
Equity account for subsidiaries | (685) | (689) |
NET INCOME | (685) | (688) |
Income attributable to non-controlling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | (685) | (688) |
Willis Towers Watson | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 0 | 0 |
Interest and other income | 0 | 0 |
Total revenues | 0 | 0 |
Salaries and benefits | 0 | 0 |
Other operating expenses | (1) | (9) |
Depreciation | 0 | 0 |
Amortization | 0 | 0 |
Restructuring costs | 0 | 0 |
Integration expenses | (1) | 0 |
Total costs of providing services | (2) | (9) |
Income from operations | (2) | (9) |
Income from Group undertakings | 0 | 0 |
Expenses due to Group undertakings | 0 | 0 |
Interest expense | (11) | (11) |
Other expense, net | (1) | (12) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | (14) | (32) |
Provision for income taxes | 0 | 0 |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | (14) | (32) |
Interest in earnings of associates, net of tax | 0 | 0 |
Equity account for subsidiaries | 252 | 242 |
NET INCOME | 238 | 210 |
Income attributable to non-controlling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | 238 | 210 |
The Other Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 7 | 4 |
Interest and other income | 0 | 0 |
Total revenues | 7 | 4 |
Salaries and benefits | (14) | (20) |
Other operating expenses | (93) | (16) |
Depreciation | (5) | (5) |
Amortization | 0 | 0 |
Restructuring costs | (13) | (19) |
Integration expenses | (18) | 0 |
Total costs of providing services | (143) | (60) |
Income from operations | (136) | (56) |
Income from Group undertakings | 146 | 90 |
Expenses due to Group undertakings | (52) | (47) |
Interest expense | (9) | (11) |
Other expense, net | 0 | 6 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | (51) | (18) |
Provision for income taxes | 42 | 15 |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | (9) | (3) |
Interest in earnings of associates, net of tax | 0 | 2 |
Equity account for subsidiaries | 259 | 238 |
NET INCOME | 250 | 237 |
Income attributable to non-controlling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | 250 | 237 |
The Issuer | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 0 | 0 |
Interest and other income | 0 | 0 |
Total revenues | 0 | 0 |
Salaries and benefits | 0 | 0 |
Other operating expenses | 0 | 0 |
Depreciation | 0 | 0 |
Amortization | 0 | 0 |
Restructuring costs | 0 | 0 |
Integration expenses | 0 | 0 |
Total costs of providing services | 0 | 0 |
Income from operations | 0 | 0 |
Income from Group undertakings | 31 | 22 |
Expenses due to Group undertakings | (7) | (7) |
Interest expense | (18) | (9) |
Other expense, net | 0 | 0 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 6 | 6 |
Provision for income taxes | (1) | (1) |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 5 | 5 |
Interest in earnings of associates, net of tax | 0 | 0 |
Equity account for subsidiaries | 174 | 209 |
NET INCOME | 179 | 214 |
Income attributable to non-controlling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | 179 | 214 |
Other | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Commissions, fees and consulting revenue | 2,212 | 1,077 |
Interest and other income | 15 | 6 |
Total revenues | 2,227 | 1,083 |
Salaries and benefits | (1,182) | (547) |
Other operating expenses | (337) | (135) |
Depreciation | (38) | (17) |
Amortization | (161) | (14) |
Restructuring costs | (12) | (12) |
Integration expenses | (33) | 0 |
Total costs of providing services | (1,763) | (725) |
Income from operations | 464 | 358 |
Income from Group undertakings | 30 | 25 |
Expenses due to Group undertakings | (148) | (83) |
Interest expense | (8) | (2) |
Other expense, net | (17) | (1) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 321 | 297 |
Provision for income taxes | (59) | (70) |
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 262 | 227 |
Interest in earnings of associates, net of tax | 1 | 14 |
Equity account for subsidiaries | 0 | 0 |
NET INCOME | 263 | 241 |
Income attributable to non-controlling interests | (7) | (4) |
NET INCOME ATTRIBUTABLE TO WILLIS TOWERS WATSON | $ 256 | $ 237 |
Financial Information for Iss91
Financial Information for Issuer, Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Unaudited Condensed Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | $ 231 | $ 321 |
Less: Comprehensive (income) loss attributable to non-controlling interest | (9) | 3 |
Comprehensive income attributable to Willis Towers Watson | 222 | 324 |
Consolidating adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | (625) | (1,074) |
Less: Comprehensive (income) loss attributable to non-controlling interest | 0 | 0 |
Comprehensive income attributable to Willis Towers Watson | (625) | (1,074) |
Willis Towers Watson | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | 222 | 324 |
Less: Comprehensive (income) loss attributable to non-controlling interest | 0 | 0 |
Comprehensive income attributable to Willis Towers Watson | 222 | 324 |
The Other Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | 232 | 354 |
Less: Comprehensive (income) loss attributable to non-controlling interest | 0 | 0 |
Comprehensive income attributable to Willis Towers Watson | 232 | 354 |
The Issuer | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | 161 | 347 |
Less: Comprehensive (income) loss attributable to non-controlling interest | 0 | 0 |
Comprehensive income attributable to Willis Towers Watson | 161 | 347 |
Other | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Comprehensive income before non-controlling interests | 241 | 370 |
Less: Comprehensive (income) loss attributable to non-controlling interest | (9) | 3 |
Comprehensive income attributable to Willis Towers Watson | $ 232 | $ 373 |
Financial Information for Iss92
Financial Information for Issuer, Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Unaudited Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 954 | $ 532 | $ 503 | $ 635 |
Fiduciary assets | 12,031 | 10,458 | ||
Accounts receivable, net | 2,268 | 1,258 | ||
Prepaid and other current assets | 326 | 255 | ||
Amounts due from group undertakings | 0 | 0 | ||
Total current assets | 15,579 | 12,503 | ||
Investments in subsidiaries | 0 | 0 | ||
Fixed assets, net | 790 | 563 | ||
Goodwill | 10,477 | 3,737 | ||
Other intangible assets, net | 5,086 | 1,115 | ||
Pension benefits assets | 749 | 623 | ||
Other non-current assets | 348 | 298 | ||
Non-current amounts due from group undertakings | 0 | 0 | ||
Total non-current assets | 17,450 | 6,336 | ||
TOTAL ASSETS | 33,029 | 18,839 | ||
Fiduciary liabilities | 12,031 | 10,458 | ||
Deferred revenue and accrued expenses | 1,109 | 752 | ||
Short-term debt and current portion of long-term debt | 1,144 | 988 | ||
Other current liabilities | 972 | 603 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total current liabilities | 15,256 | 12,801 | ||
Investments in subsidiaries | 0 | |||
Long-term debt | 2,767 | 2,278 | ||
Liability for pension benefits | 1,210 | 279 | ||
Deferred tax liabilities | 1,234 | 240 | ||
Provision for liabilities | 600 | 295 | ||
Other non-current liabilities | 605 | 533 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total non-current liabilities | 6,416 | 3,625 | ||
TOTAL LIABILITIES | 21,672 | 16,426 | ||
REDEEMABLE NONCONTROLLING INTEREST | 53 | 53 | ||
Total Willis Towers Watson shareholders’ equity | 11,151 | 2,229 | ||
Noncontrolling interests | 153 | 131 | ||
Total equity | 11,304 | 2,360 | 2,321 | 2,007 |
TOTAL LIABILITIES AND EQUITY | 33,029 | 18,839 | ||
Consolidating adjustments | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Fiduciary assets | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Prepaid and other current assets | (30) | (12) | ||
Amounts due from group undertakings | (16,012) | (7,171) | ||
Total current assets | (16,042) | (7,183) | ||
Investments in subsidiaries | (21,865) | (7,161) | ||
Fixed assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Pension benefits assets | 0 | 0 | ||
Other non-current assets | 0 | 0 | ||
Non-current amounts due from group undertakings | (1,716) | (1,303) | ||
Total non-current assets | (23,581) | (8,464) | ||
TOTAL ASSETS | (39,623) | (15,647) | ||
Fiduciary liabilities | 0 | 0 | ||
Deferred revenue and accrued expenses | 0 | 0 | ||
Short-term debt and current portion of long-term debt | 0 | 0 | ||
Other current liabilities | (30) | (12) | ||
Amounts due to group undertakings | (16,012) | (7,171) | ||
Total current liabilities | (16,042) | (7,183) | ||
Investments in subsidiaries | (387) | |||
Long-term debt | 0 | 0 | ||
Liability for pension benefits | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Provision for liabilities | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
Amounts due to group undertakings | (1,716) | (1,303) | ||
Total non-current liabilities | (1,716) | (1,690) | ||
TOTAL LIABILITIES | (17,758) | (8,873) | ||
REDEEMABLE NONCONTROLLING INTEREST | 0 | 0 | ||
Total Willis Towers Watson shareholders’ equity | (21,865) | (6,774) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (21,865) | (6,774) | ||
TOTAL LIABILITIES AND EQUITY | (39,623) | (15,647) | ||
Willis Towers Watson | Reportable Legal Entities | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 2 | 3 | 6 | 9 |
Fiduciary assets | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Prepaid and other current assets | 0 | 1 | ||
Amounts due from group undertakings | 7,721 | 3,423 | ||
Total current assets | 7,723 | 3,427 | ||
Investments in subsidiaries | 3,993 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Pension benefits assets | 0 | 0 | ||
Other non-current assets | 0 | 0 | ||
Non-current amounts due from group undertakings | 0 | 0 | ||
Total non-current assets | 3,993 | 0 | ||
TOTAL ASSETS | 11,716 | 3,427 | ||
Fiduciary liabilities | 0 | 0 | ||
Deferred revenue and accrued expenses | 1 | 1 | ||
Short-term debt and current portion of long-term debt | 0 | 300 | ||
Other current liabilities | 69 | 15 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total current liabilities | 70 | 316 | ||
Investments in subsidiaries | 387 | |||
Long-term debt | 495 | 495 | ||
Liability for pension benefits | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Provision for liabilities | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total non-current liabilities | 495 | 882 | ||
TOTAL LIABILITIES | 565 | 1,198 | ||
REDEEMABLE NONCONTROLLING INTEREST | 0 | 0 | ||
Total Willis Towers Watson shareholders’ equity | 11,151 | 2,229 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 11,151 | 2,229 | ||
TOTAL LIABILITIES AND EQUITY | 11,716 | 3,427 | ||
The Other Guarantors | Reportable Legal Entities | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 2 | 0 | 2 |
Fiduciary assets | 0 | 0 | ||
Accounts receivable, net | 6 | 7 | ||
Prepaid and other current assets | 85 | 72 | ||
Amounts due from group undertakings | 4,709 | 951 | ||
Total current assets | 4,800 | 1,032 | ||
Investments in subsidiaries | 9,486 | 4,069 | ||
Fixed assets, net | 62 | 58 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Pension benefits assets | 0 | 0 | ||
Other non-current assets | 58 | 9 | ||
Non-current amounts due from group undertakings | 798 | 785 | ||
Total non-current assets | 10,404 | 4,921 | ||
TOTAL ASSETS | 15,204 | 5,953 | ||
Fiduciary liabilities | 0 | 0 | ||
Deferred revenue and accrued expenses | 35 | 68 | ||
Short-term debt and current portion of long-term debt | 394 | 0 | ||
Other current liabilities | 57 | 50 | ||
Amounts due to group undertakings | 10,013 | 5,234 | ||
Total current liabilities | 10,499 | 5,352 | ||
Investments in subsidiaries | 0 | |||
Long-term debt | 187 | 580 | ||
Liability for pension benefits | 0 | 0 | ||
Deferred tax liabilities | 2 | 1 | ||
Provision for liabilities | 120 | 0 | ||
Other non-current liabilities | 40 | 36 | ||
Amounts due to group undertakings | 518 | 518 | ||
Total non-current liabilities | 867 | 1,135 | ||
TOTAL LIABILITIES | 11,366 | 6,487 | ||
REDEEMABLE NONCONTROLLING INTEREST | 0 | 0 | ||
Total Willis Towers Watson shareholders’ equity | 3,838 | (534) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 3,838 | (534) | ||
TOTAL LIABILITIES AND EQUITY | 15,204 | 5,953 | ||
The Issuer | Reportable Legal Entities | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Fiduciary assets | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Prepaid and other current assets | 1 | 0 | ||
Amounts due from group undertakings | 1,817 | 1,538 | ||
Total current assets | 1,818 | 1,538 | ||
Investments in subsidiaries | 8,386 | 3,092 | ||
Fixed assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Pension benefits assets | 0 | 0 | ||
Other non-current assets | 0 | 1 | ||
Non-current amounts due from group undertakings | 918 | 518 | ||
Total non-current assets | 9,304 | 3,611 | ||
TOTAL ASSETS | 11,122 | 5,149 | ||
Fiduciary liabilities | 0 | 0 | ||
Deferred revenue and accrued expenses | 3 | 0 | ||
Short-term debt and current portion of long-term debt | 638 | 609 | ||
Other current liabilities | 12 | 16 | ||
Amounts due to group undertakings | 430 | 435 | ||
Total current liabilities | 1,083 | 1,060 | ||
Investments in subsidiaries | 0 | |||
Long-term debt | 1,853 | 1,203 | ||
Liability for pension benefits | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Provision for liabilities | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
Amounts due to group undertakings | 0 | 0 | ||
Total non-current liabilities | 1,853 | 1,203 | ||
TOTAL LIABILITIES | 2,936 | 2,263 | ||
REDEEMABLE NONCONTROLLING INTEREST | 0 | 0 | ||
Total Willis Towers Watson shareholders’ equity | 8,186 | 2,886 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 8,186 | 2,886 | ||
TOTAL LIABILITIES AND EQUITY | 11,122 | 5,149 | ||
Other | Reportable Legal Entities | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 952 | 527 | $ 497 | $ 624 |
Fiduciary assets | 12,031 | 10,458 | ||
Accounts receivable, net | 2,262 | 1,251 | ||
Prepaid and other current assets | 270 | 194 | ||
Amounts due from group undertakings | 1,765 | 1,259 | ||
Total current assets | 17,280 | 13,689 | ||
Investments in subsidiaries | 0 | 0 | ||
Fixed assets, net | 728 | 505 | ||
Goodwill | 10,477 | 3,737 | ||
Other intangible assets, net | 5,086 | 1,115 | ||
Pension benefits assets | 749 | 623 | ||
Other non-current assets | 290 | 288 | ||
Non-current amounts due from group undertakings | 0 | 0 | ||
Total non-current assets | 17,330 | 6,268 | ||
TOTAL ASSETS | 34,610 | 19,957 | ||
Fiduciary liabilities | 12,031 | 10,458 | ||
Deferred revenue and accrued expenses | 1,070 | 683 | ||
Short-term debt and current portion of long-term debt | 112 | 79 | ||
Other current liabilities | 864 | 534 | ||
Amounts due to group undertakings | 5,569 | 1,502 | ||
Total current liabilities | 19,646 | 13,256 | ||
Investments in subsidiaries | 0 | |||
Long-term debt | 232 | 0 | ||
Liability for pension benefits | 1,210 | 279 | ||
Deferred tax liabilities | 1,232 | 239 | ||
Provision for liabilities | 480 | 295 | ||
Other non-current liabilities | 565 | 497 | ||
Amounts due to group undertakings | 1,198 | 785 | ||
Total non-current liabilities | 4,917 | 2,095 | ||
TOTAL LIABILITIES | 24,563 | 15,351 | ||
REDEEMABLE NONCONTROLLING INTEREST | 53 | 53 | ||
Total Willis Towers Watson shareholders’ equity | 9,841 | 4,422 | ||
Noncontrolling interests | 153 | 131 | ||
Total equity | 9,994 | 4,553 | ||
TOTAL LIABILITIES AND EQUITY | $ 34,610 | $ 19,957 |
Financial Information for Iss93
Financial Information for Issuer, Parent Guarantor, Other Guarantor Subsidiaries and Non-Guarantor Subsidiaries - Unaudited Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | $ 118 | $ (64) |
Additions to fixed assets and software for internal use | (48) | (17) |
Capitalized software costs | (18) | 0 |
Acquisitions of operations, net of cash acquired | 469 | (8) |
Redemptions of held-to-maturity investments | 11 | 0 |
Sales and redemptions of available for sale securities | 9 | 0 |
Other, net | (6) | 17 |
Proceeds from intercompany investing activities | 0 | 0 |
Repayments of intercompany investing activities | 0 | 0 |
Reduction in investment in subsidiaries | 0 | |
Additional investment in subsidiaries | 0 | |
Net cash from (used in) investing activities | 417 | (8) |
Net payments on revolving credit facility | (338) | 0 |
Senior notes issued | 997 | 0 |
Proceeds from issue of other debt | 400 | 0 |
Repayments of debt | (1,181) | (4) |
Debt issuance costs | 0 | (1) |
Repurchase of shares | 0 | (15) |
Proceeds from issuance of shares and excess tax benefit | 11 | 38 |
Dividends paid | 0 | (54) |
Acquisitions of and dividends paid to noncontrolling interests | (4) | (3) |
Proceeds from intercompany financing activities | 0 | 0 |
Repayments of intercompany financing activities | 0 | 0 |
Net cash provided by (used in) financing activities | (115) | (39) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 420 | (111) |
Effect of exchange rate changes on cash and cash equivalents | 2 | (21) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 532 | 635 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 954 | 503 |
Consolidating adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | 0 | 0 |
Additions to fixed assets and software for internal use | 0 | 0 |
Capitalized software costs | 0 | |
Acquisitions of operations, net of cash acquired | 0 | 0 |
Redemptions of held-to-maturity investments | 0 | |
Sales and redemptions of available for sale securities | 0 | |
Other, net | 0 | 0 |
Proceeds from intercompany investing activities | (9) | (99) |
Repayments of intercompany investing activities | 9,095 | 37 |
Reduction in investment in subsidiaries | (8,200) | |
Additional investment in subsidiaries | 8,200 | |
Net cash from (used in) investing activities | 9,086 | (62) |
Net payments on revolving credit facility | 0 | |
Senior notes issued | 0 | |
Proceeds from issue of other debt | 0 | |
Repayments of debt | 0 | 0 |
Debt issuance costs | 0 | |
Repurchase of shares | 0 | |
Proceeds from issuance of shares and excess tax benefit | 0 | 0 |
Dividends paid | 0 | |
Acquisitions of and dividends paid to noncontrolling interests | 0 | 0 |
Proceeds from intercompany financing activities | (9,095) | (37) |
Repayments of intercompany financing activities | 9 | 99 |
Net cash provided by (used in) financing activities | (9,086) | 62 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 |
Willis Towers Watson | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | (4) | (20) |
Additions to fixed assets and software for internal use | 0 | 0 |
Capitalized software costs | 0 | |
Acquisitions of operations, net of cash acquired | 0 | 0 |
Redemptions of held-to-maturity investments | 0 | |
Sales and redemptions of available for sale securities | 0 | |
Other, net | 0 | 0 |
Proceeds from intercompany investing activities | 0 | 51 |
Repayments of intercompany investing activities | (4,308) | 0 |
Reduction in investment in subsidiaries | 4,600 | |
Additional investment in subsidiaries | 0 | |
Net cash from (used in) investing activities | 292 | 51 |
Net payments on revolving credit facility | 0 | |
Senior notes issued | 0 | |
Proceeds from issue of other debt | 0 | |
Repayments of debt | (300) | 0 |
Debt issuance costs | 0 | |
Repurchase of shares | (15) | |
Proceeds from issuance of shares and excess tax benefit | 11 | 35 |
Dividends paid | (54) | |
Acquisitions of and dividends paid to noncontrolling interests | 0 | 0 |
Proceeds from intercompany financing activities | 0 | 0 |
Repayments of intercompany financing activities | 0 | 0 |
Net cash provided by (used in) financing activities | (289) | (34) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (1) | (3) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3 | 9 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2 | 6 |
The Other Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | (211) | (35) |
Additions to fixed assets and software for internal use | (9) | (4) |
Capitalized software costs | 0 | |
Acquisitions of operations, net of cash acquired | 0 | 0 |
Redemptions of held-to-maturity investments | 0 | |
Sales and redemptions of available for sale securities | 0 | |
Other, net | 0 | 0 |
Proceeds from intercompany investing activities | 0 | 48 |
Repayments of intercompany investing activities | (3,600) | (11) |
Reduction in investment in subsidiaries | 3,600 | |
Additional investment in subsidiaries | (4,600) | |
Net cash from (used in) investing activities | (4,609) | 33 |
Net payments on revolving credit facility | 0 | |
Senior notes issued | 0 | |
Proceeds from issue of other debt | 0 | |
Repayments of debt | 0 | 0 |
Debt issuance costs | 0 | |
Repurchase of shares | 0 | |
Proceeds from issuance of shares and excess tax benefit | 0 | 0 |
Dividends paid | 0 | |
Acquisitions of and dividends paid to noncontrolling interests | 0 | 0 |
Proceeds from intercompany financing activities | 4,827 | 23 |
Repayments of intercompany financing activities | (9) | (23) |
Net cash provided by (used in) financing activities | 4,818 | 0 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (2) | (2) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2 | 2 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 |
The Issuer | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | (27) | 1 |
Additions to fixed assets and software for internal use | 0 | 0 |
Capitalized software costs | 0 | |
Acquisitions of operations, net of cash acquired | 0 | 0 |
Redemptions of held-to-maturity investments | 0 | |
Sales and redemptions of available for sale securities | 0 | |
Other, net | 0 | 0 |
Proceeds from intercompany investing activities | 0 | 0 |
Repayments of intercompany investing activities | (627) | 0 |
Reduction in investment in subsidiaries | 0 | |
Additional investment in subsidiaries | 0 | |
Net cash from (used in) investing activities | (627) | 0 |
Net payments on revolving credit facility | (338) | |
Senior notes issued | 997 | |
Proceeds from issue of other debt | 400 | |
Repayments of debt | (406) | (4) |
Debt issuance costs | 0 | |
Repurchase of shares | 0 | |
Proceeds from issuance of shares and excess tax benefit | 0 | 0 |
Dividends paid | 0 | |
Acquisitions of and dividends paid to noncontrolling interests | 0 | 0 |
Proceeds from intercompany financing activities | 1 | 3 |
Repayments of intercompany financing activities | 0 | 0 |
Net cash provided by (used in) financing activities | 654 | (1) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 |
Other | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
NET CASH (USED IN) FROM OPERATING ACTIVITIES | 360 | (10) |
Additions to fixed assets and software for internal use | (39) | (13) |
Capitalized software costs | (18) | |
Acquisitions of operations, net of cash acquired | 469 | (8) |
Redemptions of held-to-maturity investments | 11 | |
Sales and redemptions of available for sale securities | 9 | |
Other, net | (6) | 17 |
Proceeds from intercompany investing activities | 9 | 0 |
Repayments of intercompany investing activities | (560) | (26) |
Reduction in investment in subsidiaries | 0 | |
Additional investment in subsidiaries | (3,600) | |
Net cash from (used in) investing activities | (3,725) | (30) |
Net payments on revolving credit facility | 0 | |
Senior notes issued | 0 | |
Proceeds from issue of other debt | 0 | |
Repayments of debt | (475) | 0 |
Debt issuance costs | (1) | |
Repurchase of shares | 0 | |
Proceeds from issuance of shares and excess tax benefit | 0 | 3 |
Dividends paid | 0 | |
Acquisitions of and dividends paid to noncontrolling interests | (4) | (3) |
Proceeds from intercompany financing activities | 4,267 | 11 |
Repayments of intercompany financing activities | 0 | (76) |
Net cash provided by (used in) financing activities | 3,788 | (66) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 423 | (106) |
Effect of exchange rate changes on cash and cash equivalents | 2 | (21) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 527 | 624 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 952 | $ 497 |