XML 26 R25.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Financial Information For Parent Issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries
6 Months Ended
Jun. 30, 2011
Financial Information For Parent Issuer, Guarantor Subsidiaries And Non-Guarantor Subsidiaries [Abstract]  
FINANCIAL INFORMATION FOR PARENT ISSUER, GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES
20.   FINANCIAL INFORMATION FOR PARENT ISSUER, GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES
 
The Company may offer debt securities, preferred stock, ordinary stock and other securities pursuant to an effective shelf registration on Form S-3. On March 17, 2011, the Company issued senior notes totaling $800 million under its existing registration statement. The debt securities issued (‘Holdings Debt Securities’), are guaranteed by certain of the Company’s subsidiaries. Therefore, the Company is providing the condensed consolidating financial information below. The following 100 percent directly or indirectly owned subsidiaries fully and unconditionally guarantee the Holdings Debt Securities on a joint and several basis: Willis Netherlands Holdings B.V., Willis Investment UK Holdings Limited, TA I Limited, Trinity Acquisition plc, Willis Group Limited and Willis North America (the ‘Guarantors’).
 
The guarantor structure described above differs from the existing 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 19) in that Willis Group Holdings is the Parent Issuer and Willis North America is a subsidiary guarantor.
 
Presented below is condensed consolidating financial information for:
 
  (i)    Willis Group Holdings, 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 of Willis Group Holdings and the Guarantors. Investments in subsidiaries in the condensed consolidating balance sheet for Other represents the cost of investment in subsidiaries recorded in the parent companies of the non-guarantor subsidiaries.
 
The entities included in the Guarantors column as of June 30, 2011 and December 31, 2010 are Willis Netherlands Holdings B.V., Willis Investment UK Holdings Limited, TA I Limited, Trinity Acquisition plc, Willis Group Limited and Willis North America.
 
Condensed Consolidating Statement of Operations
 
                                         
    Three months ended June 30, 2011  
    Willis
                         
    Group
                         
    Holdings —
                         
    the Parent
    The
          Consolidating
       
    Issuer     Guarantors     Other     adjustments     Consolidated  
    (millions)  
 
REVENUES
                                       
Commissions and fees
  $     $     $ 854     $     $   854  
Investment income
          3       8       (3 )     8  
Other income
                24       (23 )     1  
                                         
Total revenues
          3       886       (26 )     863  
                                         
EXPENSES
                                       
Salaries and benefits
                (523 )     17       (506 )
Other operating expenses
          (47 )     (119 )     2       (164 )
Depreciation expense
          (3 )     (16 )           (19 )
Amortization of intangible assets
                (22 )     5       (17 )
                                         
Total expenses
          (50 )     (680 )     24       (706 )
                                         
OPERATING (LOSS) INCOME
          (47 )     206       (2 )     157  
Investment income from Group undertakings
    1       247       40       (288 )      
Interest expense
    (10 )     (97 )     (102 )     175       (34 )
                                         
(LOSS) INCOME BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES
    (9 )     103       144       (115 )     123  
Income taxes
    2       3       (39 )     3       (31 )
                                         
(LOSS) INCOME BEFORE INTEREST IN EARNINGS OF ASSOCIATES
    (7 )     106       105       (112 )     92  
Interest in earnings of associates, net of tax
                (5 )     2       (3 )
                                         
NET (LOSS) INCOME
    (7 )     106       100       (110 )     89  
Less: Net income attributable to noncontrolling interests
                (4 )           (4 )
EQUITY ACCOUNT FOR SUBSIDIARIES
    92       (14 )           (78 )      
                                         
NET INCOME ATTRIBUTABLE TO WILLIS GROUP HOLDINGS
  $ 85     $ 92     $ 96     $ (188 )   $ 85  
                                         
 
 
Condensed Consolidating Statement of Operations
 
                                         
    Three months ended June 30, 2010  
    Willis
                         
    Group
                         
    Holdings —
                         
    the Parent
    The
          Consolidating
       
    Issuer     Guarantors     Other     adjustments     Consolidated  
    (millions)  
 
REVENUES
                                       
Commissions and fees
  $     $     $ 789     $     $ 789  
Investment income
          2       13       (5 )     10  
                                         
Total revenues
          2       802       (5 )     799  
                                         
EXPENSES
                                       
Salaries and benefits
                (466 )     10       (456 )
Other operating expenses
    369       (53 )     (436 )     (15 )     (135 )
Depreciation expense
          (2 )     (14 )           (16 )
Amortization of intangible assets
                (21 )           (21 )
Net gain (loss) on disposal of operations
                2,433       (2,435 )     (2 )
                                         
Total expenses
    369       (55 )     1,496       (2,440 )     (630 )
                                         
OPERATING INCOME (LOSS)
    369       (53 )     2,298       (2,445 )     169  
Investment income from Group undertakings
          335       65       (400 )      
Interest expense
          (117 )     (154 )     230       (41 )
                                         
INCOME BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES
    369       165       2,209       (2,615 )     128  
Income taxes
          9       (45 )     1       (35 )
                                         
INCOME BEFORE INTEREST IN EARNINGS OF ASSOCIATES
    369       174       2,164       (2,614 )     93  
Interest in earnings of associates, net of tax
                (6 )     4       (2 )
                                         
NET INCOME
    369       174       2,158       (2,610 )     91  
Less: Net income attributable to noncontrolling interests
                      (2 )     (2 )
EQUITY ACCOUNT FOR SUBSIDIARIES
    (280 )     65             215        
                                         
NET INCOME ATTRIBUTABLE TO WILLIS GROUP HOLDINGS
  $ 89     $ 239     $ 2,158     $ (2,397 )   $ 89  
                                         
 
 
Condensed Consolidating Statement of Operations
 
                                         
    Six months ended June 30, 2011  
    Willis
                         
    Group
                         
    Holdings —
                         
    the Parent
    The
          Consolidating
       
    Issuer     Guarantors     Other     adjustments     Consolidated  
    (millions)  
 
REVENUES
                                       
Commissions and fees
  $     $     $ 1,854     $     $ 1,854  
Investment income
          6       16       (6 )     16  
Other income
                24       (23 )     1  
                                         
Total revenues
          6       1,894       (29 )     1,871  
                                         
EXPENSES
                                       
Salaries and benefits
                (1,116 )     26       (1,090 )
Other operating expenses
    1       (68 )     (253 )     3       (317 )
Depreciation expense
          (7 )     (32 )           (39 )
Amortization of intangible assets
                (39 )     5       (34 )
Net gain on disposal of operations
                6       (2 )     4  
                                         
Total expenses
    1       (75 )     (1,434 )     32       (1,476 )
                                         
OPERATING INCOME (LOSS)
    1       (69 )     460       3       395  
Investment income from Group undertakings
    35       391       33       (459 )      
Make-whole on repurchase and redemption of senior notes and write-off of unamortized debt issuance costs
          (171 )                 (171 )
Interest expense
    (12 )     (198 )     (208 )     344       (74 )
                                         
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES
    24       (47 )     285       (112 )     150  
Income taxes
    2       59       (89 )     (4 )     (32 )
                                         
INCOME BEFORE INTEREST IN EARNINGS OF ASSOCIATES
    26       12       196       (116 )     118  
Interest in earnings of associates, net of tax
                9       4       13  
                                         
NET INCOME
    26       12       205       (112 )     131  
Less: Net income attributable to noncontrolling interests
                (12 )           (12 )
EQUITY ACCOUNT FOR SUBSIDIARIES
    93       119             (212 )      
                                         
NET INCOME ATTRIBUTABLE TO WILLIS GROUP HOLDINGS
  $ 119     $ 131     $ 193     $ (324 )   $ 119  
                                         
 
 
Condensed Consolidating Statement of Operations
 
                                         
    Six months ended June 30, 2010  
    Willis
                         
    Group
                         
    Holdings —
                         
    the Parent
    The
          Consolidating
       
    Issuer     Guarantors     Other     adjustments     Consolidated  
    (millions)  
 
REVENUES
                                       
Commissions and fees
  $     $     $ 1,752     $     $ 1,752  
Investment income
          6       18       (5 )     19  
                                         
Total revenues
          6       1,770       (5 )     1,771  
                                         
EXPENSES
                                       
Salaries and benefits
                (957 )     15       (942 )
Other operating expenses
    565       (85 )     (730 )     (34 )     (284 )
Depreciation expense
          (4 )     (27 )           (31 )
Amortization of intangible assets
                (42 )           (42 )
Net gain on disposal of operations
                2,435       (2,437 )     (2 )
                                         
Total expenses
    565       (89 )     679       (2,456 )     (1,301 )
                                         
OPERATING INCOME (LOSS)
    565       (83 )     2,449       (2,461 )     470  
Investment income from Group undertakings
          724       488       (1,212 )      
Interest expense
          (291 )     (211 )     418       (84 )
                                         
INCOME BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES
    565       350       2,726       (3,255 )     386  
Income taxes
          5       (119 )     12       (102 )
                                         
INCOME BEFORE INTEREST IN EARNINGS OF ASSOCIATES
    565       355       2,607       (3,243 )     284  
Interest in earnings of associates, net of tax
                14       4       18  
                                         
NET INCOME
    565       355       2,621       (3,239 )     302  
Less: Net income attributable to noncontrolling interests
                (3 )     (6 )     (9 )
EQUITY ACCOUNT FOR SUBSIDIARIES
    (272 )     92             180        
                                         
NET INCOME ATTRIBUTABLE TO WILLIS GROUP HOLDINGS
  $ 293     $ 447     $ 2,618     $ (3,065 )   $ 293  
                                         
 
 
Condensed Consolidating Balance Sheet
 
                                         
    As at June 30, 2011  
    Willis
                         
    Group
                         
    Holdings —
                         
    the Parent
    The
          Consolidating
       
    Issuer     Guarantors     Other     adjustments     Consolidated  
    (millions)  
 
ASSETS
                                       
CURRENT ASSETS
                                       
Cash and cash equivalents
  $     $ 87     $ 230     $     $ 317  
Accounts receivable
                1,021       28       1,049  
Fiduciary assets
                11,919       (663 )     11,256  
Deferred tax assets
                32             32  
Other current assets
    3       175       434       (285 )     327  
                                         
Total current assets
    3       262       13,636       (920 )     12,981  
                                         
Investments in subsidiaries
    (911 )     4,639       3,875       (7,603 )      
Amounts owed by (to) Group undertakings
    4,462       (4,311 )     (151 )            
NON-CURRENT ASSETS
                                       
Fixed assets
          58       335       (2 )     391  
Goodwill
                1,699       1,618       3,317  
Other intangible assets
                477       (16 )     461  
Investments in associates
                (45 )     231       186  
Deferred tax assets
                7       2       9  
Pension benefits asset
                231             231  
Other non-current assets
    6       187       172             365  
                                         
Total non-current assets
    6       245       2,876       1,833       4,960  
                                         
TOTAL ASSETS
  $ 3,560     $ 835     $ 20,236     $ (6,690 )   $ 17,941  
                                         
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                       
CURRENT LIABILITIES
                                       
Fiduciary liabilities
  $     $     $ 11,919     $ (663 )   $ 11,256  
Deferred revenue and accrued expenses
    1             322             323  
Income taxes payable
          51       107       (108 )     50  
Short-term debt
          110       4             114  
Deferred tax liabilities
          1       21             22  
Other current liabilities
    58       71       222       (33 )     318  
                                         
Total current liabilities
    59       233       12,595       (804 )     12,083  
                                         
NON-CURRENT LIABILITIES
                                       
Long-term debt
    794       1,513                   2,307  
Liabilities for pension benefits
                150             150  
Deferred tax liabilities
          30       81             111  
Provisions for liabilities
                188       (4 )     184  
Other non-current liabilities
          17       350             367  
                                         
Total non-current liabilities
    794       1,560       769       (4 )     3,119  
                                         
TOTAL LIABILITIES
  $ 853     $ 1,793     $ 13,364     $ (808 )   $ 15,202  
                                         
EQUITY
                                       
Total Willis Group Holdings stockholders’ equity
    2,707       (958 )     6,840       (5,882 )     2,707  
Noncontrolling interests
                32             32  
                                         
Total equity
    2,707       (958 )     6,872       (5,882 )     2,739  
                                         
TOTAL LIABILITIES AND EQUITY
  $ 3,560     $ 835     $ 20,236     $ (6,690 )   $ 17,941  
                                         
 
 
Condensed Consolidating Balance Sheet
 
                                         
    As at December 31, 2010  
    Willis
                         
    Group
                         
    Holdings —
                         
    the Parent
    The
          Consolidating
       
    Issuer     Guarantors     Other     adjustments     Consolidated  
    (millions)  
 
ASSETS
                                       
CURRENT ASSETS
                                       
Cash and cash equivalents
  $     $ 76     $ 240     $     $ 316  
Accounts receivable
    2             809       28       839  
Fiduciary assets
                10,167       (598 )     9,569  
Deferred tax assets
          1       35             36  
Other current assets
          80       293       (33 )     340  
                                         
Total current assets
    2       157       11,544       (603 )     11,100  
                                         
Investments in subsidiaries
    (1,039 )     4,429       3,855       (7,245 )      
Amounts owed by (to) Group undertakings
    3,659       (3,588 )     (71 )            
NON-CURRENT ASSETS
                                       
Fixed assets
          52       330       (1 )     381  
Goodwill
                1,696       1,598       3,294  
Other intangible assets
                492             492  
Investments in associates
                (51 )     212       161  
Deferred tax assets
                7             7  
Pension benefits asset
                179             179  
Other non-current assets
          207       149       (123 )     233  
                                         
Total non-current assets
          259       2,802       1,686       4,747  
                                         
TOTAL ASSETS
  $ 2,622     $ 1,257     $ 18,130     $ (6,162 )   $ 15,847  
                                         
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                       
CURRENT LIABILITIES
                                       
Fiduciary liabilities
  $     $     $ 10,167     $ (598 )   $ 9,569  
Deferred revenue and accrued expenses
    1             297             298  
Income taxes payable
                69       (12 )     57  
Short-term debt
          110                   110  
Deferred tax liabilities
          4       5             9  
Other current liabilities
    44       53       189       (20 )     266  
                                         
Total current liabilities
    45       167       10,727       (630 )     10,309  
                                         
NON-CURRENT LIABILITIES
                                       
Long-term debt
          2,153       4             2,157  
Liabilities for pension benefits
                164             164  
Deferred tax liabilities
          29       54             83  
Provisions for liabilities
                183       (4 )     179  
Other non-current liabilities
          26       321             347  
                                         
Total non-current liabilities
          2,208       726       (4 )     2,930  
                                         
TOTAL LIABILITIES
  $ 45     $ 2,375     $ 11,453     $ (634 )   $ 13,239  
                                         
EQUITY
                                       
Total Willis Group Holdings stockholders’ equity
    2,577       (1,118 )     6,646       (5,528 )     2,577  
Noncontrolling interests
                31             31  
                                         
Total equity
    2,577       (1,118 )     6,677       (5,528 )     2,608  
                                         
TOTAL LIABILITIES AND EQUITY
  $ 2,622     $ 1,257     $ 18,130     $ (6,162 )   $ 15,847  
                                         
 
 
Condensed Consolidating Statement of Cash Flows
 
                                         
    Six months ended June 30, 2011  
    Willis
                         
    Group
                         
    Holdings —
                         
    the Parent
    The
          Consolidating
       
    Issuer     Guarantors     Other     adjustments     Consolidated  
    (millions)  
 
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
  $ 3     $ 130     $ 140     $ (147 )   $ 126  
                                         
CASH FLOWS FROM INVESTING ACTIVITIES
                                       
Proceeds on disposal of fixed and intangible assets
                5             5  
Additions to fixed assets
          (13 )     (34 )           (47 )
Acquisitions of subsidiaries, net of cash acquired
                (4 )           (4 )
Acquisitions of investments in associates
                (2 )           (2 )
Investment in Trident V Parallel Fund, LP
                (4 )           (4 )
                                         
Net cash used in investing activities
          (13 )     (39 )           (52 )
                                         
CASH FLOWS FROM FINANCING ACTIVITIES
                                       
Draw down of revolving credit facility
          (90 )                 (90 )
Senior notes issued
    794                         794  
Debt issuance costs
    (7 )                       (7 )
Repayments of debt
          (555 )                 (555 )
Make-whole on repurchase and redemption of senior notes
          (158 )                 (158 )
Proceeds from issue of shares
    42                         42  
Amounts owed by and to Group undertakings
    (742 )     705       37              
Excess tax benefits from share-based payment arrangement
                4             4  
Dividends paid
    (90 )           (147 )     147       (90 )
Acquisition of noncontrolling interests
          (8 )     (1 )           (9 )
Dividends paid to noncontrolling interests
                (12 )           (12 )
                                         
Net cash used in financing activities
    (3 )     (106 )     (119 )     147       (81 )
                                         
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
          11       (18 )           (7 )
Effect of exchange rate changes on cash and cash equivalents
                8             8  
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
          76       240             316  
                                         
CASH AND CASH EQUIVALENTS, END OF YEAR
          87       230             317  
                                         
 
 
Condensed Consolidating Statement of Cash Flows
 
                                         
    Six months ended June 30, 2010  
    Willis
                         
    Group
                         
    Holdings —
                         
    the Parent
    The
          Consolidating
       
    Issuer     Guarantors     Other     adjustments     Consolidated  
    (millions)  
 
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
  $ 569     $ 363     $ (22 )   $ (756 )   $ 154  
                                         
CASH FLOWS FROM INVESTING ACTIVITIES
                                       
Proceeds on disposal of fixed and intangible assets
                4             4  
Additions to fixed assets
          (13 )     (32 )           (45 )
Acquisitions of subsidiaries, net of cash acquired
                (15 )           (15 )
Acquisitions of investments in associates
                (1 )           (1 )
                                         
Net cash used in investing activities
          (13 )     (44 )           (57 )
                                         
CASH FLOWS FROM FINANCING ACTIVITIES
                                       
Proceeds from draw down of revolving credit facility
          30                   30  
Repayments of debt
          (61 )     (9 )           (70 )
Proceeds from issue of shares
    17                         17  
Amounts owed by and to Group undertakings
    (542 )     (210 )     752              
Excess tax benefits from share-based payment arrangement
                1             1  
Dividends paid
    (44 )     (132 )     (669 )     756       (89 )
Acquisition of noncontrolling interests
                (4 )           (4 )
Dividends paid to noncontrolling interests
                (22 )           (22 )
                                         
Net cash (used in) provided by financing activities
    (569 )     (373 )     49       756       (137 )
                                         
DECREASE IN CASH AND CASH EQUIVALENTS
          (23 )     (17 )           (40 )
Effect of exchange rate changes on cash and cash equivalents
                (14 )           (14 )
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
          104       117             221  
                                         
CASH AND CASH EQUIVALENTS, END OF YEAR
  $     $ 81     $ 86     $     $ 167