Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

Note 5 — Segment Information

WTW has two reportable operating segments or business areas:

•Health, Wealth & Career (‘HWC’)

•Risk & Broking (‘R&B’)

WTW’s chief operating decision maker is its chief executive officer. We determined that the operational data used by the chief operating decision maker is at the segment level. Management bases strategic goals and decisions on these segments and the data presented below is used to assess the adequacy of strategic decisions and the methods of achieving these strategies and related financial results. Management evaluates the performance of its segments and allocates resources to them based on net operating income on a pre-tax basis.

The Company experiences seasonal fluctuations of its revenue. Revenue is typically higher during the Company’s first and fourth quarters due primarily to the timing of broking-related activities.

The following table presents segment revenue and segment operating income for our reportable segments for the three months ended September 30, 2022 and 2021. The prior year information has been retrospectively adjusted to conform to the current year presentation.

	Three Months Ended September 30,
	HWC				R&B				Total
	2022		2021		2022		2021		2022		2021
Segment revenue	$	1,162	$	1,168	$	765	$	787	$	1,927	$	1,955
Segment operating income	$	236	$	241	$	105	$	138	$	341	$	379

The following table presents segment revenue and segment operating income for our reportable segments for the nine months ended September 30, 2022 and 2021. The prior year information has been retrospectively adjusted to conform to the current year presentation.

	Nine Months Ended September 30,
	HWC				R&B				Total
	2022		2021		2022		2021		2022		2021
Segment revenue	$	3,565	$	3,580	$	2,508	$	2,596	$	6,073	$	6,176
Segment operating income	$	710	$	701	$	465	$	545	$	1,175	$	1,246

The following table presents reconciliations of the information reported by segment to the Company’s condensed consolidated statements of comprehensive income amounts reported for the three and nine months ended September 30, 2022 and 2021.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Revenue:
Total segment revenue	$	1,927		$	1,955		$	6,073		$	6,176
Divested businesses (i)		—			8			—			68
Reimbursable expenses and other		26			10			71			48
Revenue	$	1,953		$	1,973		$	6,144		$	6,292
Total segment operating income	$	341		$	379		$	1,175		$	1,246
Divested businesses (i)		—			(20	)		—			(49	)
Impairment (ii)		—			—			(81	)		—
Amortization		(71	)		(85	)		(239	)		(285	)
Restructuring costs		(9	)		—			(71	)		—
Transaction and transformation, net (iii)		(50	)		952			(108	)		877
Unallocated, net (iv)		(57	)		(95	)		(206	)		(277	)
Income from operations		154			1,131			470			1,512
Interest expense		(54	)		(50	)		(154	)		(161	)
Other income, net		85			105			205			617
Income from continuing operations before income taxes	$	185		$	1,186		$	521		$	1,968

(i)Represents the revenue and income from operations of certain Investment, Risk and Reinsurance businesses which were divested in 2021 and not classified as discontinued operations.

(ii)Represents the impairment related to the net assets of our Russian business that are held outside of our Russian entities (see Note 3 — Acquisitions and Divestitures for further information).

(iii)In 2022, in addition to legal fees and other transaction costs, includes primarily consulting fees related to the Transformation program (see Note 6 — Restructuring Costs). In 2021, includes the $1 billion income receipt related to the termination of, and fees related to, our then-proposed Aon combination.

(iv)Includes certain costs, primarily related to corporate functions which are not directly related to the segments, and certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes.

The Company does not currently provide asset information by reportable segment as it does not routinely evaluate the total asset position by segment.