v3.24.3
Revenue
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue

Note 4 — Revenue

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 nine months ended September 30, 2024 and 2023. Along with reimbursable expenses and other, total revenue by service offering represents our revenue from customer contracts.

 

 

 

Three Months Ended September 30,

 

 

 

HWC

 

 

R&B

 

 

Corporate (i)

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Broking

 

$

262

 

 

$

241

 

 

$

744

 

 

$

673

 

 

$

—

 

 

$

—

 

 

$

1,006

 

 

$

914

 

Consulting

 

 

653

 

 

 

643

 

 

 

93

 

 

 

88

 

 

 

—

 

 

 

4

 

 

 

746

 

 

 

735

 

Outsourced administration

 

 

268

 

 

 

272

 

 

 

16

 

 

 

21

 

 

 

—

 

 

 

—

 

 

 

284

 

 

 

293

 

Other

 

 

134

 

 

 

119

 

 

 

53

 

 

 

46

 

 

 

—

 

 

 

—

 

 

 

187

 

 

 

165

 

Total revenue by service offering

 

 

1,317

 

 

 

1,275

 

 

 

906

 

 

 

828

 

 

 

—

 

 

 

4

 

 

 

2,223

 

 

 

2,107

 

Reimbursable expenses and other (i)

 

 

17

 

 

 

16

 

 

 

3

 

 

 

3

 

 

 

(5

)

 

 

(2

)

 

 

15

 

 

 

17

 

Total revenue from customer contracts

 

$

1,334

 

 

$

1,291

 

 

$

909

 

 

$

831

 

 

$

(5

)

 

$

2

 

 

$

2,238

 

 

$

2,124

 

Interest and other income

 

 

11

 

 

 

7

 

 

 

34

 

 

 

27

 

 

 

6

 

 

 

8

 

 

 

51

 

 

 

42

 

Total revenue

 

$

1,345

 

 

$

1,298

 

 

$

943

 

 

$

858

 

 

$

1

 

 

$

10

 

 

$

2,289

 

 

$

2,166

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

HWC

 

 

R&B

 

 

Corporate (i)

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Broking

 

$

876

 

 

$

789

 

 

$

2,264

 

 

$

2,088

 

 

$

—

 

 

$

8

 

 

$

3,140

 

 

$

2,885

 

Consulting

 

 

1,966

 

 

 

1,947

 

 

 

294

 

 

 

273

 

 

 

1

 

 

 

12

 

 

 

2,261

 

 

 

2,232

 

Outsourced administration

 

 

791

 

 

 

779

 

 

 

63

 

 

 

67

 

 

 

—

 

 

 

—

 

 

 

854

 

 

 

846

 

Other

 

 

262

 

 

 

247

 

 

 

180

 

 

 

168

 

 

 

—

 

 

 

—

 

 

 

442

 

 

 

415

 

Total revenue by service offering

 

 

3,895

 

 

 

3,762

 

 

 

2,801

 

 

 

2,596

 

 

 

1

 

 

 

20

 

 

 

6,697

 

 

 

6,378

 

Reimbursable expenses and other (i)

 

 

49

 

 

 

49

 

 

 

9

 

 

 

9

 

 

 

(3

)

 

 

9

 

 

 

55

 

 

 

67

 

Total revenue from customer contracts

 

$

3,944

 

 

$

3,811

 

 

$

2,810

 

 

$

2,605

 

 

$

(2

)

 

$

29

 

 

$

6,752

 

 

$

6,445

 

Interest and other income

 

 

29

 

 

 

22

 

 

 

96

 

 

 

63

 

 

 

18

 

 

 

39

 

 

 

143

 

 

 

124

 

Total revenue

 

$

3,973

 

 

$

3,833

 

 

$

2,906

 

 

$

2,668

 

 

$

16

 

 

$

68

 

 

$

6,895

 

 

$

6,569

 

 

(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, adjustments to reserves and impacts from hedged revenue transactions.

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 significant components of interest and other income are as follows for the periods presented above:

 

 

 

Three Months Ended September 30,

 

 

 

HWC

 

 

R&B

 

 

Corporate

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Book-of-business settlements

 

$

3

 

 

$

—

 

 

$

4

 

 

$

1

 

 

$

—

 

 

$

—

 

 

$

7

 

 

$

1

 

Interest income

 

 

8

 

 

 

7

 

 

 

29

 

 

 

25

 

 

 

6

 

 

 

7

 

 

 

43

 

 

 

39

 

Other income

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

 

 

—

 

 

 

1

 

 

 

1

 

 

 

2

 

Total interest and other income

 

$

11

 

 

$

7

 

 

$

34

 

 

$

27

 

 

$

6

 

 

$

8

 

 

$

51

 

 

$

42

 

 

 

 

Nine Months Ended September 30,

 

 

 

HWC

 

 

R&B

 

 

Corporate

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Book-of-business settlements

 

$

3

 

 

$

—

 

 

$

8

 

 

$

11

 

 

$

—

 

 

$

—

 

 

$

11

 

 

$

11

 

Interest income

 

 

26

 

 

 

18

 

 

 

86

 

 

 

52

 

 

 

18

 

 

 

36

 

 

 

130

 

 

 

106

 

Other income

 

 

—

 

 

 

4

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

3

 

 

 

2

 

 

 

7

 

Total interest and other income

 

$

29

 

 

$

22

 

 

$

96

 

 

$

63

 

 

$

18

 

 

$

39

 

 

$

143

 

 

$

124

 

As a result of the cessation of the co-broking agreement, (see Note 3 — Acquisitions and Divestitures) interest income associated with fiduciary funds is now allocated more directly to the Risk and Broking segment beginning in the third quarter of 2023. These amounts were previously allocated to the Corporate segment following the disposal of Willis Re.

The following tables present revenue from service offerings by the geography where our work was performed for the three and nine months ended September 30, 2024 and 2023. Reconciliations to total revenue on our condensed consolidated statements of comprehensive income and to segment revenue are shown in the tables above.

 

 

 

Three Months Ended September 30,

 

 

 

HWC

 

 

R&B

 

 

Corporate

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

North America

 

$

830

 

 

$

830

 

 

$

364

 

 

$

344

 

 

$

—

 

 

$

3

 

 

$

1,194

 

 

$

1,177

 

Europe

 

 

362

 

 

 

330

 

 

 

397

 

 

 

354

 

 

 

—

 

 

 

1

 

 

 

759

 

 

 

685

 

International

 

 

125

 

 

 

115

 

 

 

145

 

 

 

130

 

 

 

—

 

 

 

—

 

 

 

270

 

 

 

245

 

Total revenue by geography

 

$

1,317

 

 

$

1,275

 

 

$

906

 

 

$

828

 

 

$

—

 

 

$

4

 

 

$

2,223

 

 

$

2,107

 

 

 

 

Nine Months Ended September 30,

 

 

 

HWC

 

 

R&B

 

 

Corporate

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

North America

 

$

2,480

 

 

$

2,445

 

 

$

1,056

 

 

$

990

 

 

$

—

 

 

$

6

 

 

$

3,536

 

 

$

3,441

 

Europe

 

 

1,069

 

 

 

991

 

 

 

1,317

 

 

 

1,214

 

 

 

1

 

 

 

12

 

 

 

2,387

 

 

 

2,217

 

International

 

 

346

 

 

 

326

 

 

 

428

 

 

 

392

 

 

 

—

 

 

 

2

 

 

 

774

 

 

 

720

 

Total revenue by geography

 

$

3,895

 

 

$

3,762

 

 

$

2,801

 

 

$

2,596

 

 

$

1

 

 

$

20

 

 

$

6,697

 

 

$

6,378

 

 

Contract Balances

The Company reports accounts receivable, net on the condensed consolidated balance sheets, 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 September 30, 2024 and December 31, 2023:

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Billed receivables, net of allowance for doubtful accounts of $40 million and $34 million

 

$

1,445

 

 

$

1,581

 

Unbilled receivables

 

 

584

 

 

 

491

 

Current contract assets

 

 

89

 

 

 

500

 

Accounts receivable, net

 

$

2,118

 

 

$

2,572

 

Non-current accounts receivable, net

 

$

17

 

 

$

19

 

Non-current contract assets

 

$

—

 

 

$

909

 

Deferred revenue

 

$

747

 

 

$

677

 

The amounts presented above exclude the receivables of TRANZACT at September 30, 2024, which have been reclassified as assets held for sale on the Company’s condensed consolidated balance sheet (see Note 3 – Acquisitions and Divestitures), including $190 million of accounts receivable, net and $951 million of non-current contract assets.

During the three and nine months ended September 30, 2024, revenue of $67 million and $468 million, respectively, was recognized that was reflected as deferred revenue at December 31, 2023. During the three months ended September 30, 2024, revenue of $264 million was recognized that was reflected as deferred revenue at June 30, 2024.

During the three and nine months ended September 30, 2024, the Company recognized revenue of $10 million and $31 million, respectively, related to performance obligations satisfied prior to 2024.

Performance Obligations

The Company has contracts for which performance obligations have not been satisfied as of September 30, 2024 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 2024

 

 

2025

 

 

2026 onward

 

 

Total

 

Revenue expected to be recognized on contracts as of September 30, 2024

 

$

153

 

 

$

503

 

 

$

762

 

 

$

1,418

 

 

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 September 30, 2024 have been excluded from the table above.