Comprehensive Income

6 Months Ended

Jun. 30, 2011


16.	COMPREHENSIVE INCOME

a) The components of comprehensive income are as follows:


	Three months ended						Six months ended
	June 30,						June 30,
	2011			2010			2011			2010
	(millions)						(millions)

Net income	$	89		$	91		$	131		$	302
Other comprehensive income, net of tax:
Foreign currency translation adjustment (net of tax of $nil, $nil, $nil and $nil)		25			(29	)		65			(35	)
Pension funding adjustment (net of tax of $nil, $(2) million, $(1) million and $(5) million)		—			6			(5	)		12
Net loss on derivative instruments (net of tax of $1 million, $(2) million, $3 million and $(2) million)		(4	)		7			(7	)		7

Other comprehensive income (net of tax of $1 million, $(4) million, $2 million and $(7) million)		21			(16	)		53			(16	)

Comprehensive income		110			75			184			286
Noncontrolling interest		(4	)		(2	)		(12	)		(9	)

Comprehensive income attributable to Willis Group Holdings	$	106		$	73		$	172		$	277

b) The components of accumulated other comprehensive loss, net of tax, are as follows:


	June 30,			December 31,
	2011			2010
	(millions)

Net foreign currency translation adjustment	$	13		$	(52	)
Pension funding adjustment		(508	)		(503	)
Net unrealized gain on derivative instruments		7			14

Accumulated other comprehensive loss, attributable to Willis Group Holdings, net of tax	$	(488	)	$	(541	)

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

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