Revenue

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Note 4 — Revenue

The prior-year period presented has been recast to exclude the revenue of Willis Re, which has been reclassified as discontinued operations on the Company’s condensed consolidated financial statements (see Note 3 – Acquisitions and Divestitures).

Disaggregation of Revenue

The Company reports revenue by segment in Note 5 — Segment Information. The following table presents revenue by service offering and segment, as well as a reconciliation to total revenue for the three months ended March 31, 2022 and 2021. Along with reimbursable expenses and other, total revenue by service offering represents our revenue from customer contracts. The prior year segment information has been retrospectively adjusted to conform to the current year presentation.

	Three Months Ended March 31,
	HWC				R&B				Divested Businesses				Corporate (i)				Total
	2022		2021		2022		2021		2022		2021		2022		2021		2022		2021
Broking	$	271	$	250	$	696	$	717	$	—	$	45	$	4	$	—	$	971	$	1,012
Consulting		653		652		104		101		—		6		2		2		759		761
Outsourced administration		250		264		27		29		—		—		—		—		277		293
Other		64		61		61		57		—		—		—		1		125		119
Total revenue by service offering		1,238		1,227		888		904		—		51		6		3		2,132		2,185
Reimbursable expenses and other (i)		13		13		3		1		—		—		2		2		18		16
Total revenue from customer contracts	$	1,251	$	1,240	$	891	$	905	$	—	$	51	$	8	$	5	$	2,150	$	2,201
Interest and other income (ii)		6		6		3		20		—		—		1		1		10		27
Total revenue	$	1,257	$	1,246	$	894	$	925	$	—	$	51	$	9	$	6	$	2,160	$	2,228

(i)Reimbursable expenses and other, as well as Corporate revenue, are excluded from segment revenue, but included in total revenue on the condensed consolidated statements of comprehensive income. Amounts included in Corporate revenue may include eliminations and impacts from hedged revenue transactions.

(ii)Interest and other income is included in segment revenue and total revenue, however it has been presented separately in the above tables because it does not arise directly from contracts with customers.

The following table presents revenue by the geography where our work is performed for the three months ended March 31, 2022 and 2021. The reconciliation to total revenue on our condensed consolidated statement of comprehensive income and to segment revenue is shown in the table above. The prior year geographic information has been retrospectively adjusted to conform to the current year presentation.

	Three Months Ended March 31,
	HWC				R&B				Divested Businesses				Corporate				Total
	2022		2021		2022		2021		2022		2021		2022		2021		2022		2021
North America	$	779	$	772	$	277	$	266	$	—	$	5	$	2	$	2	$	1,058	$	1,045
Europe		353		358		480		499		—		46		4		1		837		904
International		106		97		131		139		—		—		—		—		237		236
Total revenue by geography	$	1,238	$	1,227	$	888	$	904	$	—	$	51	$	6	$	3	$	2,132	$	2,185

Contract Balances

The Company reports accounts receivable, net on the condensed consolidated balance sheet, which includes billed and unbilled receivables and current contract assets. In addition to accounts receivable, net, the Company had the following non-current contract assets and deferred revenue balances at March 31, 2022 and December 31, 2021:

	March 31, 2022		December 31, 2021
Billed receivables, net of allowance for doubtful accounts of $49 million and $45 million	$	1,381	$	1,504
Unbilled receivables		477		431
Current contract assets		328		435
Accounts receivable, net	$	2,186	$	2,370
Non-current accounts receivable, net	$	14	$	23
Non-current contract assets	$	569	$	532
Deferred revenue	$	646	$	576

During the three months ended March 31, 2022, revenue of approximately $251 million was recognized that was reflected as deferred revenue at December 31, 2021.

During the three months ended March 31, 2022, the Company recognized revenue of approximately $3 million related to performance obligations satisfied in a prior period.

Performance Obligations

The Company has contracts for which performance obligations have not been satisfied as of March 31, 2022 or have been partially satisfied as of this date. The following table shows the expected timing for the satisfaction of the remaining performance obligations. This table does not include contract renewals or variable consideration, which was excluded from the transaction prices in accordance with the guidance on constraining estimates of variable consideration.

In addition, in accordance with ASC 606, Revenue From Contracts With Customers (‘ASC 606’), the Company has elected not to disclose the remaining performance obligations when one or both of the following circumstances apply:

•Performance obligations which are part of a contract that has an original expected duration of less than one year, and

•Performance obligations satisfied in accordance with ASC 606-10-55-18 (‘right to invoice’).

	Remainder of 2022		2023		2024 onward		Total
Revenue expected to be recognized on contracts as of March 31, 2022	$	476	$	621	$	682	$	1,779

Since most of the Company’s contracts are cancellable with less than one year’s notice, and have no substantive penalty for cancellation, the majority of the Company’s remaining performance obligations as of March 31, 2022 have been excluded from the table above.