v3.24.2
Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Information

Note 5 — Segment Information

WTW has two reportable operating segments or business areas:

•
Health, Wealth & Career (‘HWC’); and
•
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 June 30, 2024 and 2023.

 

 

 

Three Months Ended June 30,

 

 

 

HWC

 

 

R&B

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Segment revenue

 

$

1,260

 

 

$

1,215

 

 

$

979

 

 

$

900

 

 

$

2,239

 

 

$

2,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating income

 

$

276

 

 

$

222

 

 

$

202

 

 

$

145

 

 

$

478

 

 

$

367

 

 

The following table presents segment revenue and segment operating income for our reportable segments for the six months ended June 30, 2024 and 2023.

 

 

 

Six Months Ended June 30,

 

 

 

HWC

 

 

R&B

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Segment revenue

 

$

2,596

 

 

$

2,502

 

 

$

1,957

 

 

$

1,804

 

 

$

4,553

 

 

$

4,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating income

 

$

612

 

 

$

531

 

 

$

405

 

 

$

325

 

 

$

1,017

 

 

$

856

 

 

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, 2024 and 2023.

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Total segment revenue

 

$

2,239

 

 

$

2,115

 

 

$

4,553

 

 

$

4,306

 

Reimbursable expenses and other

 

 

26

 

 

 

44

 

 

 

53

 

 

 

97

 

Revenue

 

$

2,265

 

 

$

2,159

 

 

$

4,606

 

 

$

4,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment operating income

 

$

478

 

 

$

367

 

 

$

1,017

 

 

$

856

 

Amortization

 

 

(60

)

 

 

(70

)

 

 

(120

)

 

 

(141

)

Restructuring costs (i)

 

 

(3

)

 

 

(10

)

 

 

(21

)

 

 

(13

)

Transaction and transformation (ii)

 

 

(97

)

 

 

(93

)

 

 

(222

)

 

 

(152

)

Unallocated, net (iii)

 

 

(106

)

 

 

(52

)

 

 

(162

)

 

 

(123

)

Income from operations

 

 

212

 

 

 

142

 

 

 

492

 

 

 

427

 

Interest expense

 

 

(68

)

 

 

(57

)

 

 

(132

)

 

 

(111

)

Other income, net

 

 

24

 

 

 

35

 

 

 

50

 

 

 

60

 

Income from operations before income taxes

 

$

168

 

 

$

120

 

 

$

410

 

 

$

376

 

 

(i)
See Note 6 — Restructuring Costs for the composition of costs for 2024 and 2023.
(ii)
In 2024 and 2023, in addition to legal fees and other transaction costs, includes primarily consulting fees and compensation costs related to the Transformation program (see Note 6 — Restructuring Costs).
(iii)
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.