Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

Note 5 — Segment Information

Willis Towers Watson has four reportable operating segments or business areas:

• Human Capital and Benefits (‘HCB’)

• Corporate Risk and Broking (‘CRB’)

• Investment, Risk and Reinsurance (‘IRR’)

• Benefits Delivery and Administration (‘BDA’)

Willis Towers Watson’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 June 30, 2020 and 2019.

	Three Months Ended June 30,
	HCB				CRB				IRR				BDA						Total
	2020		2019		2020		2019		2020		2019		2020			2019			2020		2019
Segment revenue	$	767	$	797	$	701	$	690	$	413	$	409	$	209		$	126		$	2,090	$	2,022
Segment operating    income/(loss)	$	160	$	169	$	135	$	104	$	119	$	109	$	(9	)	$	(25	)	$	405	$	357

The following table presents segment revenue and segment operating income for our reportable segments for the six months ended June 30, 2020 and 2019.

	Six Months Ended June 30,
	HCB				CRB				IRR				BDA						Total
	2020		2019		2020		2019		2020		2019		2020			2019			2020		2019
Segment revenue	$	1,617	$	1,626	$	1,440	$	1,418	$	1,028	$	998	$	440		$	261		$	4,525	$	4,303
Segment operating    income/(loss)	$	373	$	373	$	262	$	231	$	396	$	361	$	(20	)	$	(46	)	$	1,011	$	919

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 six months ended June 30, 2020 and 2019.

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Revenue:
Total segment revenue	$	2,090		$	2,022		$	4,525		$	4,303
Reimbursable expenses and other		23			26			54			57
Revenue	$	2,113		$	2,048		$	4,579		$	4,360
Total segment operating income	$	405		$	357		$	1,011		$	919
Amortization		(119	)		(123	)		(240	)		(250	)
Transaction and integration expenses (i)		(14	)		—			(23	)		(6	)
Unallocated, net (ii)		(109	)		(58	)		(225	)		(128	)
Income from operations		163			176			523			535
Interest expense		(62	)		(56	)		(123	)		(110	)
Other income, net		76			67			168			122
Income from operations before income taxes	$	177		$	187		$	568		$	547

(i) Includes transaction costs related to the proposed Aon combination and TRANZACT acquisition in 2019.

(ii) 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.