Revenue

6 Months Ended

Jun. 30, 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 tables present revenue by service offering and segment, as well as reconciliations to total revenue for the three and six months ended June 30, 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 June 30,
	HWC				R&B				Divested Businesses				Corporate (i)						Total
	2022		2021		2022		2021		2022		2021		2022			2021			2022		2021
Broking	$	236	$	206	$	661	$	688	$	—	$	9	$	3		$	—		$	900	$	903
Consulting		617		637		91		99		—		—		3			2			711		738
Outsourced administration		224		245		16		19		—		—		—			—			240		264
Other		62		87		48		45		—		—		—			1			110		133
Total revenue by service offering		1,139		1,175		816		851		—		9		6			3			1,961		2,038
Reimbursable expenses and other (i)		14		14		2		2		—		—		(3	)		(2	)		13		14
Total revenue from customer contracts	$	1,153	$	1,189	$	818	$	853	$	—	$	9	$	3		$	1		$	1,974	$	2,052
Interest and other income (ii)		20		4		36		34		—		—		1			1			57		39
Total revenue	$	1,173	$	1,193	$	854	$	887	$	—	$	9	$	4		$	2		$	2,031	$	2,091

	Six Months Ended June 30,
	HWC				R&B				Divested Businesses				Corporate (i)					Total
	2022		2021		2022		2021		2022		2021		2022			2021		2022		2021
Broking	$	507	$	456	$	1,357	$	1,405	$	—	$	54	$	7		$	—	$	1,871	$	1,915
Consulting		1,270		1,289		195		200		—		6		5			4		1,470		1,499
Outsourced administration		474		509		43		48		—		—		—			—		517		557
Other		126		148		109		102		—		—		—			2		235		252
Total revenue by service offering		2,377		2,402		1,704		1,755		—		60		12			6		4,093		4,223
Reimbursable expenses and other (i)		27		27		5		3		—		—		(1	)		—		31		30
Total revenue from customer contracts	$	2,404	$	2,429	$	1,709	$	1,758	$	—	$	60	$	11		$	6	$	4,124	$	4,253
Interest and other income (ii)		26		10		39		54		—		—		2			2		67		66
Total revenue	$	2,430	$	2,439	$	1,748	$	1,812	$	—	$	60	$	13		$	8	$	4,191	$	4,319

(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. In 2022, both HWC and R&B’s interest and other income resulted primarily from book-of-business settlements. For HWC, these amounts totaled $15 million and $18 million, respectively, for three and six months ended June 30, 2022. For R&B, these amounts totaled $30 million for both the three and six months ended June 30, 2022. In the three and six months ended 2021, HWC had no significant settlements, and R&B had settlements totaling $31 million and $47 million, respectively.

The following tables present revenue by the geography where our work is performed for the three and six months ended June 30, 2022 and 2021. Reconciliations to total revenue on our condensed consolidated statements of comprehensive income and to segment revenue are shown in the table above. The prior year geographic information has been retrospectively adjusted to conform to the current year presentation.

	Three Months Ended June 30,
	HWC				R&B				Divested Businesses				Corporate				Total
	2022		2021		2022		2021		2022		2021		2022		2021		2022		2021
North America	$	756	$	738	$	333	$	327	$	—	$	5	$	2	$	2	$	1,091	$	1,072
Europe		293		348		351		383		—		4		3		1		647		736
International		90		89		132		141		—		—		1		—		223		230
Total revenue by geography	$	1,139	$	1,175	$	816	$	851	$	—	$	9	$	6	$	3	$	1,961	$	2,038

	Six Months Ended June 30,
	HWC				R&B				Divested Businesses				Corporate				Total
	2022		2021		2022		2021		2022		2021		2022		2021		2022		2021
North America	$	1,535	$	1,510	$	610	$	593	$	—	$	10	$	4	$	4	$	2,149	$	2,117
Europe		646		706		831		882		—		50		7		2		1,484		1,640
International		196		186		263		280		—		—		1		—		460		466
Total revenue by geography	$	2,377	$	2,402	$	1,704	$	1,755	$	—	$	60	$	12	$	6	$	4,093	$	4,223

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 June 30, 2022 and December 31, 2021:

	June 30, 2022		December 31, 2021
Billed receivables, net of allowance for doubtful accounts of $46 million and $45 million	$	1,325	$	1,504
Unbilled receivables		439		431
Current contract assets		261		435
Accounts receivable, net	$	2,025	$	2,370
Non-current accounts receivable, net	$	13	$	23
Non-current contract assets	$	599	$	532
Deferred revenue	$	622	$	576

During the three and six months ended June 30, 2022, revenue of $59 million and $310 million, respectively, was recognized that was reflected as deferred revenue at December 31, 2021. During the three months ended June 30, 2022, revenue of $222 million was recognized that was reflected as deferred revenue at March 31, 2022.

During the three and six months ended June 30, 2022, the Company recognized revenue of $2 million and $5 million, respectively, related to performance obligations satisfied prior to 2022.

Performance Obligations

The Company has contracts for which performance obligations have not been satisfied as of June 30, 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 June 30, 2022	$	331	$	642	$	746	$	1,719

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 June 30, 2022 have been excluded from the table above.