Attached files
file | filename |
---|---|
EX-32.2 - EX-32.2 - WILLIS TOWERS WATSON PLC | u08858exv32w2.htm |
EX-10.4 - EX-10.4 - WILLIS TOWERS WATSON PLC | u08858exv10w4.htm |
EX-10.3 - EX-10.3 - WILLIS TOWERS WATSON PLC | u08858exv10w3.htm |
EX-31.1 - EX-31.1 - WILLIS TOWERS WATSON PLC | u08858exv31w1.htm |
EX-10.2 - EX-10.2 - WILLIS TOWERS WATSON PLC | u08858exv10w2.htm |
EX-31.2 - EX-31.2 - WILLIS TOWERS WATSON PLC | u08858exv31w2.htm |
EX-10.1 - EX-10.1 - WILLIS TOWERS WATSON PLC | u08858exv10w1.htm |
EX-32.1 - EX-32.1 - WILLIS TOWERS WATSON PLC | u08858exv32w1.htm |
Table of Contents
Washington, D.C. 20549
(Mark One) | ||
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended
March 31, 2010 |
||
or
|
||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ireland | 98-0352587 | |
(Jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Large accelerated filer
þ
|
Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
|
(Do not check if a smaller reporting company) |
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 2010
Table of Contents
Page | ||||||||
Information Concerning Forward-Looking Statements | 3 | |||||||
PART I Financial Information | ||||||||
5 | ||||||||
44 | ||||||||
57 | ||||||||
57 | ||||||||
PART II Other Information | ||||||||
58 | ||||||||
58 | ||||||||
58 | ||||||||
58 | ||||||||
58 | ||||||||
58 | ||||||||
58 | ||||||||
Signatures | 59 | |||||||
EX-10.1 | ||||||||
EX-10.2 | ||||||||
EX-10.3 | ||||||||
EX-10.4 | ||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32.1 | ||||||||
EX-32.2 |
We, Us, Company,
Group, Willis or Our
|
Willis-Ireland and its subsidiaries and, prior to the effective time of the redomicile of the parent company discussed in Note 2 to the Notes to the Condensed Consolidated Financial Statements, Willis-Bermuda and its subsidiaries | |
Willis Group Holdings or Willis-Ireland
|
Willis Group Holdings Public Limited Company, a company organized under the laws of Ireland | |
Willis-Bermuda
|
Willis Group Holdings Limited, a company organized under the laws of Bermuda | |
shares
|
The ordinary shares of Willis-Ireland, nominal value $0.000115 per share | |
HRH
|
Hilb Rogal & Hobbs Company |
2
Table of Contents
| the impact of any regional, national or global political, economic, business, competitive, market and regulatory conditions on our global business operations; |
| the impact of current financial market conditions on our results of operations and financial condition, including as a result of any insolvencies or other difficulties experienced by our clients, insurance companies or financial institutions; |
| our ability to continue to manage our significant indebtedness; |
| our ability to compete effectively in our industry; |
| our ability to implement or realize anticipated benefits of the Shaping Our Future, Right Sizing Willis, Funding for Growth initiatives or any other new initiatives; |
| material changes in commercial property and casualty markets generally or the availability of insurance products or changes in premiums |
resulting from a catastrophic event, such as a hurricane, or otherwise; | |
| the volatility or declines in other insurance markets and the premiums on which our commissions are based, but which we do not control; |
| our ability to retain key employees and clients and attract new business; |
| the timing or ability to carry out share repurchases or take other steps to manage our capital and the limitations in our long-term debt agreements that may restrict our ability to take these actions; |
| any fluctuations in exchange and interest rates that could affect expenses and revenue; |
| rating agency actions that could inhibit ability to borrow funds or the pricing thereof; |
| a significant decline in the value of investments that fund our pension plans or changes in our pension plan funding obligations; |
| our ability to achieve the expected strategic benefits of transactions; |
| changes in the tax or accounting treatment of our operations; |
| any potential impact from the new US healthcare reform legislation; |
| the potential costs and difficulties in complying with a wide variety of foreign laws and regulations and any related changes, given the global scope of our operations; |
| our involvements in and the results of any regulatory investigations, legal proceedings and other contingencies; |
| underwriting and advisory risks we assume in connection with our non-core capital markets and advisory operations; |
| our exposure to potential liabilities arising from errors and omissions and other potential claims against us; and |
| the interruption or loss of our information processing systems or failure to maintain secure information systems. |
3
Table of Contents
4
Table of Contents
Item 1 | Financial Statements |
Three months ended |
||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(millions, except per |
||||||||
share data) | ||||||||
REVENUES
|
||||||||
Commissions and fees
|
$ | 963 | $ | 915 | ||||
Investment income
|
9 | 13 | ||||||
Other income
|
| 2 | ||||||
Total revenues
|
972 | 930 | ||||||
EXPENSES
|
||||||||
Salaries and benefits (including share based compensation of
$12 million in 2010 and $5 million in 2009
(Note 3))
|
(486 | ) | (480 | ) | ||||
Other operating expenses
|
(149 | ) | (138 | ) | ||||
Depreciation expense
|
(15 | ) | (14 | ) | ||||
Amortization of intangible assets
|
(21 | ) | (24 | ) | ||||
Total expenses
|
(671 | ) | (656 | ) | ||||
OPERATING INCOME
|
301 | 274 | ||||||
Interest expense
|
(43 | ) | (38 | ) | ||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND
INTEREST IN EARNINGS OF ASSOCIATES
|
258 | 236 | ||||||
Income taxes
|
(67 | ) | (62 | ) | ||||
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF
ASSOCIATES
|
191 | 174 | ||||||
Interest in earnings of associates, net of tax
|
20 | 26 | ||||||
INCOME FROM CONTINUING OPERATIONS
|
211 | 200 | ||||||
Discontinued operations, net of tax (Note 4)
|
| 1 | ||||||
NET INCOME
|
211 | 201 | ||||||
Less: Net income attributable to noncontrolling interests
|
(7 | ) | (8 | ) | ||||
NET INCOME ATTRIBUTABLE TO WILLIS GROUP HOLDINGS
|
$ | 204 | $ | 193 | ||||
AMOUNTS ATTRIBUTABLE TO WILLIS GROUP HOLDINGS SHAREHOLDERS
|
||||||||
Income from continuing operations, net of tax
|
$ | 204 | $ | 192 | ||||
Income from discontinued operations, net of tax
|
| 1 | ||||||
NET INCOME ATTRIBUTABLE TO WILLIS GROUP HOLDINGS
|
$ | 204 | $ | 193 | ||||
EARNINGS PER SHARE BASIC AND DILUTED (Note 5)
|
||||||||
BASIC EARNINGS PER SHARE
|
||||||||
Continuing operations
|
$ | 1.21 | $ | 1.15 | ||||
DILUTED EARNINGS PER SHARE
|
||||||||
Continuing operations
|
$ | 1.20 | $ | 1.15 | ||||
CASH DIVIDENDS DECLARED PER SHARE
|
$ | 0.26 | $ | 0.26 | ||||
5
Table of Contents
March 31, |
December 31, |
|||||||
2010 | 2009 | |||||||
(millions, except share data) | ||||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$ | 196 | $ | 191 | ||||
Fiduciary funds restricted
|
1,675 | 1,683 | ||||||
Accounts receivable, net of allowance for doubtful accounts of
$17 million in 2010 and $20 million in 2009
|
10,528 | 8,638 | ||||||
Fixed assets, net of accumulated depreciation of
$259 million in 2010 and $257 million in 2009
|
352 | 352 | ||||||
Goodwill (Note 10)
|
3,272 | 3,277 | ||||||
Other intangible assets, net of accumulated amortization of
$198 million in 2010 and $179 million in 2009
(Note 11)
|
551 | 572 | ||||||
Investments in associates
|
172 | 156 | ||||||
Deferred tax assets
|
88 | 82 | ||||||
Pension benefits asset
|
95 | 69 | ||||||
Other assets
|
686 | 603 | ||||||
TOTAL ASSETS
|
$ | 17,615 | $ | 15,623 | ||||
LIABILITIES AND EQUITY | ||||||||
Accounts payable
|
$ | 11,494 | $ | 9,686 | ||||
Deferred revenue and accrued expenses
|
248 | 301 | ||||||
Deferred tax liabilities
|
27 | 29 | ||||||
Income taxes payable
|
82 | 46 | ||||||
Short-term debt (Note 12)
|
193 | 209 | ||||||
Long-term debt (Note 12)
|
2,204 | 2,165 | ||||||
Liability for pension benefits
|
179 | 187 | ||||||
Other liabilities
|
789 | 771 | ||||||
Total liabilities
|
15,216 | 13,394 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 7)
|
||||||||
EQUITY
|
||||||||
Shares, $0.000115 nominal value; Authorized: 4,000,000,000;
Issued and outstanding, 169,379,615 shares in 2010 and
168,661,172 shares in 2009. Shares, 1 nominal value;
Authorized: 40,000; Issued and outstanding, 40,000 shares
in 2010 and 2009
|
| | ||||||
Additional paid-in capital
|
927 | 918 | ||||||
Retained earnings
|
2,019 | 1,859 | ||||||
Accumulated other comprehensive loss, net of tax (Note 14)
|
(594 | ) | (594 | ) | ||||
Treasury shares, at cost, 54,310 shares, $0.000115 nominal
value, and 40,000 shares, 1 nominal value, in 2010
and 2009
|
(3 | ) | (3 | ) | ||||
Total Willis Group Holdings stockholders equity
|
2,349 | 2,180 | ||||||
Noncontrolling interests
|
50 | 49 | ||||||
Total equity
|
2,399 | 2,229 | ||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 17,615 | $ | 15,623 | ||||
6
Table of Contents
Three months ended |
||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(millions) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 211 | $ | 201 | ||||
Adjustments to reconcile net income to total net cash provided
by operating activities:
|
||||||||
Income from discontinued operations
|
| (1 | ) | |||||
Net gain on disposal of operations, fixed and intangible assets
and short-term investments
|
| (2 | ) | |||||
Depreciation expense
|
15 | 14 | ||||||
Amortization of intangible assets
|
21 | 24 | ||||||
Release of provision for doubtful accounts
|
| (1 | ) | |||||
Benefit for deferred income taxes
|
(10 | ) | (9 | ) | ||||
Excess tax deficit from share-based payment arrangements
|
1 | | ||||||
Share-based compensation (Note 3)
|
12 | 5 | ||||||
Undistributed earnings of associates
|
(20 | ) | (26 | ) | ||||
Changes in operating assets and liabilities, net of effects from
purchase of subsidiaries:
|
||||||||
Fiduciary funds restricted
|
(25 | ) | 14 | |||||
Accounts receivable
|
(1,997 | ) | (647 | ) | ||||
Accounts payable
|
1,936 | 653 | ||||||
Additional funding of UK and US pension plans
|
(8 | ) | | |||||
Other assets
|
(97 | ) | (159 | ) | ||||
Other liabilities
|
21 | 7 | ||||||
Non-cash Venezuela currency devaluation
|
12 | | ||||||
Effect of exchange rate changes on net income
|
1 | 13 | ||||||
Net cash provided by continuing operating activities
|
73 | 86 | ||||||
Net cash used in discontinued operating activities
|
| (2 | ) | |||||
Total net provided by operating activities
|
73 | 84 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Proceeds on disposal of fixed and intangible assets
|
2 | 6 | ||||||
Additions to fixed assets
|
(29 | ) | (17 | ) | ||||
Acquisitions of subsidiaries, net of cash acquired
|
(13 | ) | (2 | ) | ||||
Acquisition of investments in associates
|
(1 | ) | (39 | ) | ||||
Proceeds on sale of short-term investments
|
| 4 | ||||||
Net cash used in continuing investing activities
|
(41 | ) | (48 | ) | ||||
Net cash used in discontinued investing activities
|
| | ||||||
Total net cash used in investing activities
|
(41 | ) | (48 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Proceeds from draw down of revolving credit facility
|
65 | 150 | ||||||
Proceeds from issue of short-term debt, net of debt issuance
costs
|
| 1 | ||||||
Repayments of debt
|
(43 | ) | (647 | ) | ||||
Senior notes issued, net of debt issuance costs
|
| 482 | ||||||
Proceeds from issue of shares
|
11 | 2 | ||||||
Excess tax deficit from share-based payment arrangements
|
(1 | ) | | |||||
Dividends paid
|
(44 | ) | (43 | ) | ||||
Acquisition of noncontrolling interests
|
(4 | ) | (2 | ) | ||||
Dividends paid to noncontrolling interests
|
(1 | ) | (1 | ) | ||||
Net cash used in continuing financing activities
|
(17 | ) | (58 | ) | ||||
Net cash used in discontinued financing activities
|
| | ||||||
Total net cash used in financing activities
|
(17 | ) | (58 | ) | ||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
15 | (22 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents
|
(10 | ) | (4 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
191 | 176 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 196 | $ | 150 | ||||
Cash and cash equivalents reported as discontinued
operations
|
| (3 | ) | |||||
Cash and cash equivalents continuing operations
|
$ | 196 | $ | 147 | ||||
7
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1. | NATURE OF OPERATIONS |
2. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
8
Table of Contents
2. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued) |
| the power to direct the activities of a VIE that most significantly impact the entitys economic performance; and |
| the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. |
3. | SALARIES AND BENEFITS |
9
Table of Contents
4. | DISCONTINUED OPERATIONS |
Three months |
||||
ended |
||||
March 31, |
||||
2009 | ||||
(millions) | ||||
Revenues
|
$ | 7 | ||
Income before income taxes
|
1 | |||
Income taxes
|
| |||
Income from discontinued operations
|
$ | 1 | ||
Gain on disposal of discontinued operations, net of tax
|
| |||
Discontinued operations, net of tax
|
$ | 1 | ||
April 15, |
||||
2009 | ||||
(millions) | ||||
Assets
|
||||
Cash and cash equivalents
|
$ | 1 | ||
Fiduciary funds restricted
|
9 | |||
Accounts receivable
|
17 | |||
Fixed assets
|
1 | |||
Intangible assets
|
34 | |||
Other assets
|
2 | |||
Total assets
|
$ | 64 | ||
Liabilities
|
||||
Accounts payable
|
$ | 24 | ||
Other liabilities
|
1 | |||
Total liabilities
|
$ | 25 | ||
Net assets of discontinued operations
|
$ | 39 | ||
10
Table of Contents
5. | EARNINGS PER SHARE |
Three months ended |
||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(millions, except per |
||||||||
share data) | ||||||||
Net income attributable to Willis Group Holdings
|
$ | 204 | $ | 193 | ||||
Basic average number of shares outstanding
|
169 | 167 | ||||||
Dilutive effect of potentially issuable shares
|
1 | | ||||||
Diluted average number of shares outstanding
|
170 | 167 | ||||||
Basic earnings per share:
|
||||||||
Continuing operations
|
$ | 1.21 | $ | 1.15 | ||||
Discontinued operations
|
| 0.01 | ||||||
Net income attributable to Willis Group Holdings shareholders
|
$ | 1.21 | $ | 1.16 | ||||
Dilutive effect of potentially issuable shares
|
(0.01 | ) | | |||||
Diluted earnings per share:
|
||||||||
Continuing operations
|
$ | 1.20 | $ | 1.15 | ||||
Discontinued operations
|
| 0.01 | ||||||
Net income attributable to Willis Group Holdings shareholders
|
$ | 1.20 | $ | 1.16 | ||||
6. | PENSION PLANS |
Three months ended March 31, | ||||||||||||||||||||||||
UK pension |
US pension |
Intl pension |
||||||||||||||||||||||
benefits | benefits | benefits | ||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
Components of net periodic benefit cost (income):
|
||||||||||||||||||||||||
Service cost
|
$ | 9 | $ | 5 | $ | | $ | 6 | $ | 1 | $ | 1 | ||||||||||||
Interest cost
|
25 | 22 | 10 | 10 | 2 | 2 | ||||||||||||||||||
Expected return on plan assets
|
(36 | ) | (29 | ) | (11 | ) | (9 | ) | (2 | ) | (2 | ) | ||||||||||||
Amortization of unrecognized prior service gain
|
(1 | ) | (1 | ) | | 2 | | | ||||||||||||||||
Amortization of unrecognized actuarial loss
|
9 | 8 | 1 | | | 1 | ||||||||||||||||||
Net periodic benefit cost
|
$ | 6 | $ | 5 | $ | | $ | 9 | $ | 1 | $ | 2 | ||||||||||||
11
Table of Contents
6. | PENSION PLANS (Continued) |
7. | COMMITMENTS AND CONTINGENCIES |
12
Table of Contents
7. | COMMITMENTS AND CONTINGENCIES (Continued) |
13
Table of Contents
7. | COMMITMENTS AND CONTINGENCIES (Continued) |
14
Table of Contents
7. | COMMITMENTS AND CONTINGENCIES (Continued) |
15
Table of Contents
7. | COMMITMENTS AND CONTINGENCIES (Continued) |
16
Table of Contents
7. | COMMITMENTS AND CONTINGENCIES (Continued) |
8. | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES |
17
Table of Contents
8. | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) |
Notional |
Fair |
|||||||||||
amount(i) | value | |||||||||||
(millions) | ||||||||||||
US dollar
|
Receive fixed pay variable | $ | 550 | $ | 15 | |||||||
Pound sterling
|
Receive fixed pay variable | 159 | 7 | |||||||||
Euro
|
Receive fixed pay variable | 99 | 2 |
(i) | Notional amounts represent US dollar equivalents translated at the spot rate as of March 31, 2010. |
| from changes in the exchange rate between US dollars and pounds sterling as its London market operations earn the majority of their revenues in US dollars and incur expenses predominantly in pounds sterling, and may also hold a significant net sterling asset or liability position on the balance sheet. In addition, the London market operations earn significant revenues in euros and Japanese yen; and |
18
Table of Contents
8. | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) |
| from the translation into US dollars of the net income and net assets of its foreign subsidiaries, excluding the London market operations which are US dollar denominated. |
| To the extent that forecast pound sterling expenses exceed pound sterling revenues, the Company limits its exposure to this exchange rate risk by the use of forward contracts matched to specific, clearly identified cash outflows arising in the ordinary course of business; |
| To the extent the UK operations earn significant revenues in euros and Japanese yen, the Company limits its exposure to changes in the exchange rate between the US dollar and these currencies by the use of forward contracts matched to a percentage of forecast cash inflows in specific currencies and periods; and |
| To the extent that the net sterling asset or liability position in its London market operations relate to short-term cash flows, the Company limits its exposure by the use of forward purchases and sales. These forward purchases and sales are not effective hedges for accounting purposes. |
Fair |
||||||||
Sell(i) | value | |||||||
(millions) | ||||||||
US dollar
|
$ | 337 | $ | (18 | ) | |||
Euro
|
157 | 6 | ||||||
Japanese yen
|
68 | |
(i) | Foreign currency notional amounts are reported in US dollars translated at spot rates at March 31, 2010. |
19
Table of Contents
8. | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) |
Fair value | ||||||||||
Balance sheet |
March 31, |
December 31, |
||||||||
classification | 2010 | 2009 | ||||||||
(millions) | ||||||||||
Derivative financial instruments designated as hedging
instruments:
|
||||||||||
Assets:
|
||||||||||
Interest rate swaps
|
Other assets | $ | 26 | $ | 27 | |||||
Forward exchange contracts
|
Other assets | 12 | 8 | |||||||
Total derivatives designated as hedging instruments
|
$ | 38 | $ | 35 | ||||||
Liabilities:
|
||||||||||
Interest rate swaps
|
Other liabilities | $ | | $ | (1 | ) | ||||
Forward exchange contracts
|
Other liabilities | (24 | ) | (22 | ) | |||||
Total derivatives designated as hedging instruments
|
$ | (24 | ) | $ | (23 | ) | ||||
Location of |
Amount of |
|||||||||||||||
gain (loss) |
gain (loss) |
|||||||||||||||
Location of |
Amount of |
recognized |
recognized |
|||||||||||||
gain (loss) |
(gain) loss |
in income |
in income |
|||||||||||||
Amount of |
reclassified |
reclassified |
on derivative |
on derivative |
||||||||||||
gain (loss) |
from |
from |
(Ineffective |
(Ineffective |
||||||||||||
recognized |
accumulated |
accumulated |
hedges and |
hedges and |
||||||||||||
in OCI(i) |
OCI(i)
into |
OCI(i)
into |
ineffective |
ineffective |
||||||||||||
on derivative |
income |
income |
element of |
element of |
||||||||||||
(Effective |
(Effective |
(Effective |
effective |
effective |
||||||||||||
Derivatives in cash flow hedging relationships
|
element) | element) | element) | hedges) | hedges) | |||||||||||
(millions) | (millions) | (millions) | ||||||||||||||
Three months ended March 31, 2010
|
||||||||||||||||
Interest rate swaps
|
$ | 5 | Investment income | $ | (7 | ) | Other expenses | $ | | |||||||
Forward exchange contracts
|
(3 | ) | Other expenses | 5 | Interest expense | | ||||||||||
Total
|
$ | 2 | $ | (2 | ) | $ | | |||||||||
Three months ended March 31, 2009
|
||||||||||||||||
Interest rate swaps
|
$ | 6 | Investment income | $ | (5 | ) | Other expenses | $ | (1 | ) | ||||||
Forward exchange contracts
|
6 | Other expenses | 17 | Interest expense | | |||||||||||
Total
|
$ | 12 | $ | 12 | $ | (1 | ) | |||||||||
(i) | OCI means other comprehensive income. Amount above shown gross of tax. |
20
Table of Contents
8. | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) |
9. | FAIR VALUE MEASUREMENT |
March 31, 2010 | ||||||||||||||||
Quoted |
||||||||||||||||
prices in |
||||||||||||||||
active |
Significant |
Significant |
||||||||||||||
markets for |
other |
other |
||||||||||||||
identical |
observable |
unobservable |
||||||||||||||
assets | inputs | inputs | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(millions) | ||||||||||||||||
Assets at fair value:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 196 | $ | | $ | | $ | 196 | ||||||||
Fiduciary funds restricted
|
1,675 | | | 1,675 | ||||||||||||
Derivative financial instruments
|
| 38 | | 38 | ||||||||||||
Total assets
|
$ | 1,871 | $ | 38 | $ | | $ | 1,909 | ||||||||
Liabilities at fair value:
|
||||||||||||||||
Derivative financial instruments
|
$ | | $ | 24 | $ | | $ | 24 | ||||||||
Change in fair value of hedged
debt(i)
|
$ | | $ | 2 | $ | | $ | 2 | ||||||||
Total liabilities
|
$ | | $ | 26 | $ | | $ | 26 | ||||||||
(i) | Changes in the fair value of the underlying hedged debt instrument since inception of the hedging relationship are included in long-term debt. |
21
Table of Contents
9. | FAIR VALUE MEASUREMENT (Continued) |
December 31, 2009 | ||||||||||||||||
Quoted |
||||||||||||||||
prices in |
||||||||||||||||
active |
Significant |
|||||||||||||||
markets for |
other |
|||||||||||||||
identical |
observable |
Significant other |
||||||||||||||
assets | inputs | unobservable inputs | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(millions) | ||||||||||||||||
Assets at fair value:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 191 | $ | | $ | | $ | 191 | ||||||||
Fiduciary funds restricted
|
1,683 | | | 1,683 | ||||||||||||
Derivative financial instruments
|
| 35 | | 35 | ||||||||||||
Total assets
|
$ | 1,874 | $ | 35 | $ | | $ | 1,909 | ||||||||
Liabilities at fair value:
|
||||||||||||||||
Derivative financial instruments
|
$ | | $ | 23 | $ | | $ | 23 | ||||||||
Total liabilities
|
$ | | $ | 23 | $ | | $ | 23 | ||||||||
March 31, 2010 | December 31, 2009 | |||||||||||||||
Carrying |
Fair |
Carrying |
Fair |
|||||||||||||
amount | Value | amount | Value | |||||||||||||
(millions) | ||||||||||||||||
Assets:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 196 | $ | 196 | $ | 191 | $ | 191 | ||||||||
Fiduciary funds restricted
|
1,675 | 1,675 | 1,683 | 1,683 | ||||||||||||
Derivative financial instruments
|
38 | 38 | 35 | 35 | ||||||||||||
Liabilities:
|
||||||||||||||||
Short-term debt
|
$ | 193 | $ | 194 | $ | 209 | $ | 211 | ||||||||
Long-term debt
|
2,204 | 2,480 | 2,165 | 2,409 | ||||||||||||
Derivative financial instruments
|
24 | 24 | 23 | 23 |
22
Table of Contents
9. | FAIR VALUE MEASUREMENT (Continued) |
10. | GOODWILL |
North |
||||||||||||||||
Global | America | International | Total | |||||||||||||
(millions) | ||||||||||||||||
Balance at December 31, 2008
|
$ | 1,046 | $ | 1,810 | $ | 419 | $ | 3,275 | ||||||||
Goodwill acquired during 2009
|
4 | 1 | 14 | 19 | ||||||||||||
Purchase price allocation adjustments
|
24 | (4 | ) | | 20 | |||||||||||
Goodwill disposed of during 2009
|
| (27 | ) | (1 | ) | (28 | ) | |||||||||
Foreign exchange
|
(9 | ) | | | (9 | ) | ||||||||||
Balance at December 31, 2009
|
$ | 1,065 | $ | 1,780 | $ | 432 | $ | 3,277 | ||||||||
Other
movements(i)
|
| (1 | ) | | (1 | ) | ||||||||||
Foreign exchange
|
(4 | ) | | | (4 | ) | ||||||||||
Balance at March 31, 2010
|
$ | 1,061 | $ | 1,779 | $ | 432 | $ | 3,272 | ||||||||
(i) | Tax benefit arising on the exercise of fully vested HRH stock options which were issued as part of the acquisition of HRH in 2008. |
11. | OTHER INTANGIBLE ASSETS |
| Customer and Marketing related includes |
| Client Relationships, | |
| Client Lists, | |
| Non-compete Agreements, | |
| Trade Names; and |
| Contract based, Technology and Other includes all other purchased intangible assets. |
23
Table of Contents
11. | OTHER INTANGIBLE ASSETS (Continued) |
March 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
Gross |
Net |
Gross |
Net |
|||||||||||||||||||||
carrying |
Accumulated |
carrying |
carrying |
Accumulated |
carrying |
|||||||||||||||||||
amount | amortization | amount | amount | amortization | amount | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
Customer and Marketing Related:
|
||||||||||||||||||||||||
Client Relationships
|
$ | 689 | $ | (154 | ) | $ | 535 | $ | 691 | $ | (138 | ) | $ | 553 | ||||||||||
Client Lists
|
9 | (6 | ) | 3 | 9 | (6 | ) | 3 | ||||||||||||||||
Non-compete Agreements
|
36 | (26 | ) | 10 | 36 | (23 | ) | 13 | ||||||||||||||||
Trade Names
|
11 | (10 | ) | 1 | 11 | (10 | ) | 1 | ||||||||||||||||
Total Customer and Marketing Related
|
745 | (196 | ) | 549 | 747 | (177 | ) | 570 | ||||||||||||||||
Contract based, Technology and Other
|
4 | (2 | ) | 2 | 4 | (2 | ) | 2 | ||||||||||||||||
Total amortizable intangible assets
|
$ | 749 | $ | (198 | ) | $ | 551 | $ | 751 | $ | (179 | ) | $ | 572 | ||||||||||
Remainder of |
||||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | Thereafter | Total | ||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||
Amortization of intangible assets
|
$ | 62 | $ | 68 | $ | 61 | $ | 56 | $ | 51 | $ | 253 | $ | 551 | ||||||||||||||
12. | DEBT |
March 31, |
December 31, |
|||||||
2010 | 2009 | |||||||
(millions) | ||||||||
Current portion of
5-year term
loan facility
|
$ | 110 | $ | 110 | ||||
5.125% senior notes due 2010
|
83 | 90 | ||||||
6.000% loan notes due 2010
|
| 9 | ||||||
$ | 193 | $ | 209 | |||||
24
Table of Contents
12. | DEBT (Continued) |
March 31, |
December 31, |
|||||||
2010 | 2009 | |||||||
(millions) | ||||||||
5-year term
loan facility
|
$ | 383 | $ | 411 | ||||
Revolving credit facility
|
65 | | ||||||
6.000% senior notes due 2012
|
4 | 4 | ||||||
5.625% senior notes due 2015
|
352 | 350 | ||||||
12.875% senior notes due 2016
|
500 | 500 | ||||||
6.200% senior notes due 2017
|
600 | 600 | ||||||
7.000% senior notes due 2019
|
300 | 300 | ||||||
$ | 2,204 | $ | 2,165 | |||||
13. | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
Three months ended |
||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(millions) | ||||||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash payments (receipts) for income taxes, net of cash received
|
$ | 29 | $ | (9 | ) | |||
Cash payments for interest
|
61 | 48 | ||||||
Supplemental disclosures of non-cash flow investing and
financing activities:
|
||||||||
Issue of stock on acquisitions of noncontrolling interests
|
$ | | $ | 5 | ||||
Acquisitions:
|
||||||||
Fair value of assets acquired
|
$ | 1 | $ | | ||||
Less:Liabilities assumed
|
| (23 | ) | |||||
Net assets (liabilities) acquired, net of cash acquired
|
$ | 1 | $ | (23 | ) | |||
25
Table of Contents
14. | COMPREHENSIVE INCOME |
Three months ended |
||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(millions) | ||||||||
Net income
|
$ | 211 | $ | 201 | ||||
Other comprehensive income, net of tax:
|
||||||||
Foreign currency translation adjustment (net of tax of $nil and
$nil)
|
(6 | ) | 1 | |||||
Pension funding adjustment (net of tax of $3 million and
$3 million)
|
6 | 6 | ||||||
Net gain on derivative instruments (net of tax of $nil and
$7 million)
|
| 17 | ||||||
Other comprehensive income (net of tax of $3 million and
$10 million)
|
| 24 | ||||||
Comprehensive income
|
211 | 225 | ||||||
Noncontrolling interest
|
(7 | ) | (8 | ) | ||||
Comprehensive income attributable to Willis Group Holdings
|
$ | 204 | $ | 217 | ||||
March 31, |
December 31, |
|||||||
2010 | 2009 | |||||||
(millions) | ||||||||
Net foreign currency translation adjustment
|
$ | (52 | ) | $ | (46 | ) | ||
Net unrealized holding loss
|
(2 | ) | (2 | ) | ||||
Pension funding adjustment
|
(548 | ) | (554 | ) | ||||
Net unrealized gain on derivative instruments
|
8 | 8 | ||||||
Accumulated other comprehensive loss, attributable to Willis
Group Holdings
|
$ | (594 | ) | $ | (594 | ) | ||
26
Table of Contents
15. | STOCKHOLDERS EQUITY AND NONCONTROLLING INTERESTS |
March 31, 2010 | March 31, 2009 | |||||||||||||||||||||||
Willis |
Willis |
|||||||||||||||||||||||
Group |
Group |
|||||||||||||||||||||||
Holdings |
Noncontrolling |
Total |
Holdings |
Noncontrolling |
Total |
|||||||||||||||||||
stockholders | interests | equity | stockholders | interests | equity | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
Balance at beginning of period
|
$ | 2,180 | $ | 49 | $ | 2,229 | $ | 1,845 | $ | 50 | $ | 1,895 | ||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||
Net income
|
204 | 7 | 211 | 193 | 8 | 201 | ||||||||||||||||||
Other comprehensive income, net of tax
|
| | | 24 | | 24 | ||||||||||||||||||
Comprehensive income
|
204 | 7 | 211 | 217 | 8 | 225 | ||||||||||||||||||
Dividends
|
(44 | ) | (1 | ) | (45 | ) | (42 | ) | (1 | ) | (43 | ) | ||||||||||||
Additional paid-in capital
|
9 | | 9 | 7 | | 7 | ||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interests
|
| (4 | ) | (4 | ) | | (2 | ) | (2 | ) | ||||||||||||||
Foreign currency translation
|
| (1 | ) | (1 | ) | | (2 | ) | (2 | ) | ||||||||||||||
Balance at end of period
|
$ | 2,349 | $ | 50 | $ | 2,399 | $ | 2,027 | $ | 53 | $ | 2,080 | ||||||||||||
March 31, |
March 31, |
|||||||
2010 | 2009 | |||||||
(millions) | ||||||||
Net income attributable to Willis Group Holdings
|
$ | 204 | $ | 193 | ||||
Transfers from noncontrolling interest:
|
||||||||
Decrease in Willis Group Holdings paid-in capital for purchase
of noncontrolling interests
|
(13 | ) | (5 | ) | ||||
Net transfers to noncontrolling interests
|
(13 | ) | (5 | ) | ||||
Change from net income attributable to Willis Group Holdings and
transfers from noncontrolling interests
|
$ | 191 | $ | 188 | ||||
16. | SEGMENT INFORMATION |
27
Table of Contents
16. | SEGMENT INFORMATION (Continued) |
i) | costs of the holding company; | |
ii) | foreign exchange loss from the devaluation of the Venezuelan currency; | |
iii) | foreign exchange hedging activities and foreign exchange movements on the UK pension plan asset; | |
iv) | amortization of intangible assets; | |
v) | gains and losses on the disposal of operations and major properties; | |
vi) | significant legal and regulatory settlements which are managed centrally; | |
vii) | integration costs associated with the acquisition of HRH; and | |
viii) | costs associated with the redomicile of the Companys parent company from Bermuda to Ireland. |
Three months ended March 31, 2010 | ||||||||||||||||||||||||||||
Interest in |
||||||||||||||||||||||||||||
Depreciation |
Earnings of |
|||||||||||||||||||||||||||
Commissions |
Investment |
Other |
Total |
and |
Operating |
Associates, |
||||||||||||||||||||||
and Fees | Income | Income | Revenues | Amortization | Income | net of tax | ||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||
Global
|
$ | 301 | $ | 2 | $ | | $ | 303 | $ | 4 | $ | 138 | $ | | ||||||||||||||
North America
|
361 | 4 | | 365 | 6 | 93 | | |||||||||||||||||||||
International
|
301 | 3 | | 304 | 5 | 103 | 20 | |||||||||||||||||||||
Total Retail
|
662 | 7 | | 669 | 11 | 196 | 20 | |||||||||||||||||||||
Total Operating Segments
|
963 | 9 | | 972 | 15 | 334 | 20 | |||||||||||||||||||||
Corporate and
Other(i)
|
| | | | 21 | (33 | ) | | ||||||||||||||||||||
Total Consolidated
|
$ | 963 | $ | 9 | $ | | $ | 972 | $ | 36 | $ | 301 | $ | 20 | ||||||||||||||
28
Table of Contents
16. | SEGMENT INFORMATION (Continued) |
Three Months Ended March 31, 2009 | ||||||||||||||||||||||||||||
Interest in |
||||||||||||||||||||||||||||
Depreciation |
Earnings of |
|||||||||||||||||||||||||||
Commissions |
Investment |
Other |
Total |
and |
Operating |
Associates, |
||||||||||||||||||||||
and Fees | Income | Income | Revenues | Amortization | Income | net of tax | ||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||
Global
|
$ | 275 | $ | 3 | $ | | $ | 278 | $ | 3 | $ | 127 | $ | | ||||||||||||||
North America
|
371 | 4 | 2 | 377 | 5 | 94 | | |||||||||||||||||||||
International
|
269 | 6 | | 275 | 6 | 96 | 26 | |||||||||||||||||||||
Total Retail
|
640 | 10 | 2 | 652 | 11 | 190 | 26 | |||||||||||||||||||||
Total Operating Segments
|
915 | 13 | 2 | 930 | 14 | 317 | 26 | |||||||||||||||||||||
Corporate and
Other(i)
|
| | | | 24 | (43 | ) | | ||||||||||||||||||||
Total Consolidated
|
$ | 915 | $ | 13 | $ | 2 | $ | 930 | $ | 38 | $ | 274 | $ | 26 | ||||||||||||||
(i) | Corporate and Other includes the costs of the holding company, foreign exchange loss from the devaluation of the Venezuelan currency, foreign exchange hedging activities, foreign exchange on the UK pension plan asset, amortization of intangible assets, net gains and losses on disposal of operations, certain legal costs, integration costs associated with the acquisition of HRH and the costs associated with the redomicile of the Companys parent company from Bermuda to Ireland. |
Three months ended |
||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(millions) | ||||||||
Total consolidated operating income
|
$ | 301 | $ | 274 | ||||
Interest expense
|
(43 | ) | (38 | ) | ||||
Income from continuing operations before income taxes and
interest in earnings of associates
|
$ | 258 | $ | 236 | ||||
March 31, |
December 31, |
|||||||
2010 | 2009 | |||||||
(millions) | ||||||||
Total assets:
|
||||||||
Global
|
$ | 11,780 | $ | 9,542 | ||||
North America
|
4,167 | 4,408 | ||||||
International
|
1,927 | 2,246 | ||||||
Total Retail
|
6,094 | 6,654 | ||||||
Total Operating Segments
|
17,874 | 16,196 | ||||||
Corporate and Other
|
(259 | ) | (573 | ) | ||||
Total Consolidated
|
$ | 17,615 | $ | 15,623 | ||||
29
Table of Contents
17. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES |
i) | Willis Group Holdings, which is a guarantor, on a parent company only basis; | |
ii) | the Other Guarantors, which are all 100 percent directly or indirectly owned subsidiaries of the parent; | |
iii) | the Issuer, Willis North America; | |
iv) | Other, which are the non-guarantor subsidiaries, on a combined basis; | |
v) | Eliminations; and | |
vi) | Consolidated Company. |
30
Table of Contents
17. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES (Continued) |
Three months ended March 31, 2010 | ||||||||||||||||||||||||
Willis |
||||||||||||||||||||||||
Group |
The Other |
|||||||||||||||||||||||
Holdings | Guarantors | The Issuer | Other | Eliminations | Consolidated | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||
Commissions and fees
|
$ | | $ | | $ | | $ | 963 | $ | | $ | 963 | ||||||||||||
Investment income
|
| 3 | 1 | 5 | | 9 | ||||||||||||||||||
Other income
|
| | | | | | ||||||||||||||||||
Total revenues
|
| 3 | 1 | 968 | | 972 | ||||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||
Salaries and benefits
|
| | | (491 | ) | 5 | (486 | ) | ||||||||||||||||
Other operating expenses
|
196 | (34 | ) | 2 | (294 | ) | (19 | ) | (149 | ) | ||||||||||||||
Depreciation expense
|
| | (2 | ) | (13 | ) | | (15 | ) | |||||||||||||||
Amortization of intangible assets
|
| | | (21 | ) | | (21 | ) | ||||||||||||||||
Gain on disposal of operations
|
| | | 2 | (2 | ) | | |||||||||||||||||
Total expenses
|
196 | (34 | ) | | (817 | ) | (16 | ) | (671 | ) | ||||||||||||||
OPERATING INCOME (LOSS)
|
196 | (31 | ) | 1 | 151 | (16 | ) | 301 | ||||||||||||||||
Investment income from Group undertakings
|
| 333 | 56 | 423 | (812 | ) | | |||||||||||||||||
Interest expense
|
| (132 | ) | (42 | ) | (57 | ) | 188 | (43 | ) | ||||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND
INTEREST IN EARNINGS OF ASSOCIATES
|
196 | 170 | 15 | 517 | (640 | ) | 258 | |||||||||||||||||
Income taxes
|
| 3 | (7 | ) | (74 | ) | 11 | (67 | ) | |||||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INTEREST IN EARNINGS OF
ASSOCIATES
|
196 | 173 | 8 | 443 | (629 | ) | 191 | |||||||||||||||||
Interest in earnings of associates, net of tax
|
| | | 20 | | 20 | ||||||||||||||||||
INCOME FROM CONTINUING OPERATIONS
|
196 | 173 | 8 | 463 | (629 | ) | 211 | |||||||||||||||||
Discontinued operations, net of tax
|
| | | | | | ||||||||||||||||||
NET INCOME
|
196 | 173 | 8 | 463 | (629 | ) | 211 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests
|
| | | (3 | ) | (4 | ) | (7 | ) | |||||||||||||||
EQUITY ACCOUNT FOR SUBSIDIARIES
|
8 | 35 | 5 | | (48 | ) | | |||||||||||||||||
NET INCOME ATTRIBUTABLE TO WILLIS GROUP HOLDINGS
|
$ | 204 | $ | 208 | $ | 13 | $ | 460 | $ | (681 | ) | $ | 204 | |||||||||||
31
Table of Contents
17. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES (Continued) |
Three months ended March 31, 2009 | ||||||||||||||||||||||||
Willis |
||||||||||||||||||||||||
Group |
The Other |
|||||||||||||||||||||||
Holdings | Guarantors | The Issuer | Other | Eliminations | Consolidated | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||
Commissions and fees
|
$ | | $ | | $ | | $ | 915 | $ | | $ | 915 | ||||||||||||
Investment income
|
| | 2 | 114 | (103 | ) | 13 | |||||||||||||||||
Other income
|
| | | 2 | | 2 | ||||||||||||||||||
Total revenues
|
| | 2 | 1,031 | (103 | ) | 930 | |||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||
Salaries and benefits
|
| | | (483 | ) | 3 | (480 | ) | ||||||||||||||||
Other operating expenses
|
(1 | ) | (10 | ) | 11 | (145 | ) | 7 | (138 | ) | ||||||||||||||
Depreciation expense
|
| | (2 | ) | (12 | ) | | (14 | ) | |||||||||||||||
Amortization of intangible assets
|
| | | (21 | ) | (3 | ) | (24 | ) | |||||||||||||||
Total expenses
|
(1 | ) | (10 | ) | 9 | (661 | ) | 7 | (656 | ) | ||||||||||||||
OPERATING (LOSS) INCOME
|
(1 | ) | (10 | ) | 11 | 370 | (96 | ) | 274 | |||||||||||||||
Investment income from Group undertakings
|
22 | 93 | 116 | 6 | (237 | ) | | |||||||||||||||||
Interest expense
|
| (86 | ) | (38 | ) | (152 | ) | 238 | (38 | ) | ||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND
INTEREST IN EARNINGS OF ASSOCIATES
|
21 | (3 | ) | 89 | 224 | (95 | ) | 236 | ||||||||||||||||
Income taxes
|
| | 1 | (61 | ) | (2 | ) | (62 | ) | |||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INTEREST IN
EARNINGS OF ASSOCIATES
|
21 | (3 | ) | 90 | 163 | (97 | ) | 174 | ||||||||||||||||
Interest in earnings of associates, net of tax
|
| | | 26 | | 26 | ||||||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
21 | (3 | ) | 90 | 189 | (97 | ) | 200 | ||||||||||||||||
Discontinued operations, net of tax
|
| | | 1 | | 1 | ||||||||||||||||||
NET INCOME (LOSS)
|
21 | (3 | ) | 90 | 190 | (97 | ) | 201 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests
|
| | | (2 | ) | (6 | ) | (8 | ) | |||||||||||||||
EQUITY ACCOUNT FOR SUBSIDIARIES
|
172 | 175 | (103 | ) | | (244 | ) | | ||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO WILLIS GROUP HOLDINGS
|
$ | 193 | $ | 172 | $ | (13 | ) | $ | 188 | $ | (347 | ) | $ | 193 | ||||||||||
32
Table of Contents
17. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES (Continued) |
As at March 31, 2010 | ||||||||||||||||||||||||
Willis |
||||||||||||||||||||||||
Group |
The Other |
|||||||||||||||||||||||
Holdings | Guarantors | The Issuer | Other | Eliminations | Consolidated | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | | $ | | $ | 83 | $ | 113 | $ | | $ | 196 | ||||||||||||
Fiduciary funds restricted
|
| | | 1,675 | | 1,675 | ||||||||||||||||||
Accounts receivable
|
3,757 | 5,809 | 4,282 | 14,019 | (17,339 | ) | 10,528 | |||||||||||||||||
Fixed assets
|
| | 41 | 313 | (2 | ) | 352 | |||||||||||||||||
Goodwill
|
| | | 1,718 | 1,554 | 3,272 | ||||||||||||||||||
Other intangible assets
|
| | | 521 | 30 | 551 | ||||||||||||||||||
Investments in associates
|
| | | 247 | (75 | ) | 172 | |||||||||||||||||
Deferred tax assets
|
| | | 106 | (18 | ) | 88 | |||||||||||||||||
Pension benefits asset
|
| | | 95 | | 95 | ||||||||||||||||||
Other assets
|
8 | 118 | 89 | 704 | (233 | ) | 686 | |||||||||||||||||
Investments in subsidiaries
|
2,679 | 3,780 | 1,036 | 3,847 | (11,342 | ) | | |||||||||||||||||
TOTAL ASSETS
|
$ | 6,444 | $ | 9,707 | $ | 5,531 | $ | 23,358 | $ | (27,425 | ) | $ | 17,615 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Accounts payable
|
$ | 4,048 | $ | 10,515 | $ | 3,167 | $ | 11,261 | $ | (17,497 | ) | $ | 11,494 | |||||||||||
Deferred revenue and accrued expenses
|
| | | 337 | (89 | ) | 248 | |||||||||||||||||
Deferred tax liabilities
|
| | 18 | 27 | (18 | ) | 27 | |||||||||||||||||
Income taxes payable
|
45 | 100 | | 23 | (86 | ) | 82 | |||||||||||||||||
Short-term debt
|
| | 193 | | | 193 | ||||||||||||||||||
Long-term debt
|
| 500 | 1,698 | 6 | | 2,204 | ||||||||||||||||||
Liability for pension benefits
|
| | | 179 | | 179 | ||||||||||||||||||
Other liabilities
|
2 | 13 | 41 | 590 | 143 | 789 | ||||||||||||||||||
Total liabilities
|
4,095 | 11,128 | 5,117 | 12,423 | (17,547 | ) | 15,216 | |||||||||||||||||
Total Willis Group Holdings stockholders equity
|
2,349 | (1,421 | ) | 414 | 10,928 | (9,921 | ) | 2,349 | ||||||||||||||||
Noncontrolling interests
|
| | | 7 | 43 | 50 | ||||||||||||||||||
Total equity
|
2,349 | (1,421 | ) | 414 | 10,935 | (9,878 | ) | 2,399 | ||||||||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 6,444 | $ | 9,707 | $ | 5,531 | $ | 23,358 | $ | (27,425 | ) | $ | 17,615 | |||||||||||
33
Table of Contents
17. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES (Continued) |
As at December 31, 2009 | ||||||||||||||||||||||||
Willis |
||||||||||||||||||||||||
Group |
The Other |
|||||||||||||||||||||||
Holdings | Guarantors | The Issuer | Other | Eliminations | Consolidated | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | | $ | | $ | 104 | $ | 87 | $ | | $ | 191 | ||||||||||||
Fiduciary funds restricted
|
| | | 1,683 | | 1,683 | ||||||||||||||||||
Accounts receivable
|
| 4,428 | 4,185 | 9,294 | (9,269 | ) | 8,638 | |||||||||||||||||
Fixed assets
|
| | 35 | 317 | | 352 | ||||||||||||||||||
Goodwill
|
| | | 1,722 | 1,555 | 3,277 | ||||||||||||||||||
Other intangible assets
|
| | | 542 | 30 | 572 | ||||||||||||||||||
Investments in associates
|
| | | 76 | 80 | 156 | ||||||||||||||||||
Deferred tax assets
|
| | | 97 | (15 | ) | 82 | |||||||||||||||||
Pension benefits asset
|
| | | 69 | | 69 | ||||||||||||||||||
Other assets
|
| 99 | 35 | 909 | (440 | ) | 603 | |||||||||||||||||
Investments in subsidiaries
|
2,180 | 3,693 | 1,132 | 3,867 | (10,872 | ) | | |||||||||||||||||
TOTAL ASSETS
|
$ | 2,180 | $ | 8,220 | $ | 5,491 | $ | 18,663 | $ | (18,931 | ) | $ | 15,623 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Accounts payable
|
$ | | $ | 6,887 | $ | 3,169 | $ | 9,042 | $ | (9,412 | ) | $ | 9,686 | |||||||||||
Deferred revenue and accrued expenses
|
| | | 324 | (23 | ) | 301 | |||||||||||||||||
Deferred tax liabilities
|
| | 15 | 29 | (15 | ) | 29 | |||||||||||||||||
Income taxes payable
|
| 86 | | 205 | (245 | ) | 46 | |||||||||||||||||
Short-term debt
|
| | 200 | 9 | | 209 | ||||||||||||||||||
Long-term debt
|
| 500 | 1,661 | 4 | | 2,165 | ||||||||||||||||||
Liability for pension benefits
|
| | | 187 | | 187 | ||||||||||||||||||
Other liabilities
|
| | 40 | 715 | 16 | 771 | ||||||||||||||||||
Total liabilities
|
| 7,473 | 5,085 | 10,515 | (9,679 | ) | 13,394 | |||||||||||||||||
Total Willis Group Holdings stockholders equity
|
2,180 | 747 | 406 | 8,144 | (9,297 | ) | 2,180 | |||||||||||||||||
Noncontrolling interests
|
| | | 4 | 45 | 49 | ||||||||||||||||||
Total equity
|
2,180 | 747 | 406 | 8,148 | (9,252 | ) | 2,229 | |||||||||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 2,180 | $ | 8,220 | $ | 5,491 | $ | 18,663 | $ | (18,931 | ) | $ | 15,623 | |||||||||||
34
Table of Contents
17. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES (Continued) |
Three months ended March 31, 2010 | ||||||||||||||||||||||||
Willis |
||||||||||||||||||||||||
Group |
The Other |
|||||||||||||||||||||||
Holdings | Guarantors | The Issuer | Other | Eliminations | Consolidated | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
$ | 198 | $ | (15 | ) | $ | (35 | ) | $ | (74 | ) | $ | (1 | ) | $ | 73 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||||||||||
Proceeds on disposal of fixed and intangible assets
|
| | | 2 | | 2 | ||||||||||||||||||
Additions to fixed assets
|
| | (8 | ) | (21 | ) | | (29 | ) | |||||||||||||||
Acquisitions of subsidiaries, net of cash acquired
|
| | | (13 | ) | | (13 | ) | ||||||||||||||||
Acquisitions of investments in associates
|
| | | (1 | ) | | (1 | ) | ||||||||||||||||
Net cash used in investing activities
|
| | (8 | ) | (33 | ) | | (41 | ) | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||||||||||
Proceeds from draw down of revolving credit facility
|
| | 65 | | | 65 | ||||||||||||||||||
Repayments of debt
|
| | (34 | ) | (9 | ) | | (43 | ) | |||||||||||||||
Proceeds from issue of shares
|
11 | | | | | 11 | ||||||||||||||||||
Amounts owed by and to Group undertakings
|
(209 | ) | 15 | (9 | ) | 203 | | | ||||||||||||||||
Excess tax benefits from share-based payment arrangements
|
| | | (1 | ) | | (1 | ) | ||||||||||||||||
Dividends paid
|
| | | (45 | ) | 1 | (44 | ) | ||||||||||||||||
Acquisition of noncontrolling interests
|
| | | (4 | ) | | (4 | ) | ||||||||||||||||
Dividends paid to noncontrolling interests
|
| | | (1 | ) | | (1 | ) | ||||||||||||||||
Net cash (used in) provided by financing activities
|
(198 | ) | 15 | 22 | 143 | 1 | (17 | ) | ||||||||||||||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
| | (21 | ) | 36 | | 15 | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
| | | (10 | ) | | (10 | ) | ||||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
| | 104 | 87 | | 191 | ||||||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | | $ | | $ | 83 | $ | 113 | $ | | $ | 196 | ||||||||||||
Cash and cash equivalents reported as discontinued operations
|
| | | | | | ||||||||||||||||||
Cash and cash equivalents reported as continuing operations
|
$ | | $ | | $ | 83 | $ | 113 | $ | | $ | 196 | ||||||||||||
35
Table of Contents
17. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES (Continued) |
Three months ended March 31, 2009 | ||||||||||||||||||||||||
Willis |
||||||||||||||||||||||||
Group |
The Other |
|||||||||||||||||||||||
Holdings | Guarantors | The Issuer | Other | Eliminations | Consolidated | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
$ | 22 | $ | (13 | ) | $ | 150 | $ | (69 | ) | $ | (6 | ) | $ | 84 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||||||||||
Proceeds on disposal of fixed and intangible assets
|
| | | 6 | | 6 | ||||||||||||||||||
Additions to fixed assets
|
| | (3 | ) | (14 | ) | | (17 | ) | |||||||||||||||
Acquisitions of subsidiaries, net of cash acquired
|
| | | (2 | ) | | (2 | ) | ||||||||||||||||
Acquisitions of investments in associates
|
| | | (39 | ) | | (39 | ) | ||||||||||||||||
Proceeds on sale of short-term investments
|
| | | 4 | | 4 | ||||||||||||||||||
Net cash used in investing activities
|
| | (3 | ) | (45 | ) | | (48 | ) | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||||||||||
Proceeds from draw down of revolving credit facility
|
| | 150 | | | 150 | ||||||||||||||||||
Proceeds from issue of short-term debt, net of debt issuance
costs
|
| | | 1 | | 1 | ||||||||||||||||||
Repayments of debt
|
| | (647 | ) | | | (647 | ) | ||||||||||||||||
Senior notes issued, net of debt issuance costs
|
| 482 | | | | 482 | ||||||||||||||||||
Proceeds from issue of shares
|
2 | | | | | 2 | ||||||||||||||||||
Amounts owed by and to Group undertakings
|
19 | (469 | ) | 381 | 69 | | | |||||||||||||||||
Dividends paid
|
(43 | ) | | | (6 | ) | 6 | (43 | ) | |||||||||||||||
Acquisition of noncontrolling interests
|
| | | (2 | ) | | (2 | ) | ||||||||||||||||
Dividends paid to noncontrolling interests
|
| | | (1 | ) | | (1 | ) | ||||||||||||||||
Net cash (used in) provided by financing activities
|
(22 | ) | 13 | (116 | ) | 61 | 6 | (58 | ) | |||||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
| | 31 | (53 | ) | | (22 | ) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
| | | (4 | ) | | (4 | ) | ||||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
| | | 176 | | 176 | ||||||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | | $ | | $ | 31 | $ | 119 | $ | | $ | 150 | ||||||||||||
Cash and cash equivalents reported as discontinued
operations
|
| | | (3 | ) | | (3 | ) | ||||||||||||||||
Cash and cash equivalents continuing operations
|
$ | | $ | | $ | 31 | $ | 116 | $ | | $ | 147 | ||||||||||||
36
Table of Contents
18. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES |
i) | Willis Group Holdings, which will be a guarantor, on a parent company only basis; | |
ii) | the Other Guarantors, which are all 100 percent directly or indirectly owned subsidiaries of the parent; | |
iii) | the Issuer, Trinity Acquisition plc; | |
iv) | Other, which are the non-guarantor subsidiaries, on a combined basis; | |
v) | Eliminations; and | |
vi) | Consolidated Company. |
37
Table of Contents
18. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES (Continued) |
Three months ended March 31, 2010 | ||||||||||||||||||||||||
Willis |
||||||||||||||||||||||||
Group |
The Other |
|||||||||||||||||||||||
Holdings | Guarantors | The Issuer | Other | Eliminations | Consolidated | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||
Commissions and fees
|
$ | | $ | | $ | | $ | 963 | $ | | $ | 963 | ||||||||||||
Investment income
|
| 3 | | 6 | | 9 | ||||||||||||||||||
Other income
|
| | | | | | ||||||||||||||||||
Total revenues
|
| 3 | | 969 | | 972 | ||||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||
Salaries and benefits
|
| | | (491 | ) | 5 | (486 | ) | ||||||||||||||||
Other operating expenses
|
196 | 4 | 17 | (347 | ) | (19 | ) | (149 | ) | |||||||||||||||
Depreciation expense
|
| | | (15 | ) | | (15 | ) | ||||||||||||||||
Amortization of intangible assets
|
| | | (21 | ) | | (21 | ) | ||||||||||||||||
Gain on disposal of operations
|
| | | 2 | (2 | ) | | |||||||||||||||||
Total expenses
|
196 | 4 | 17 | (872 | ) | (16 | ) | (671 | ) | |||||||||||||||
OPERATING INCOME
|
196 | 7 | 17 | 97 | (16 | ) | 301 | |||||||||||||||||
Investment income from Group undertakings
|
| 30 | 81 | 701 | (812 | ) | | |||||||||||||||||
Interest expense
|
| (40 | ) | (52 | ) | (139 | ) | 188 | (43 | ) | ||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND
INTEREST IN EARNINGS OF ASSOCIATES
|
196 | (3 | ) | 46 | 659 | (640 | ) | 258 | ||||||||||||||||
Income taxes
|
| | (12 | ) | (66 | ) | 11 | (67 | ) | |||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INTEREST IN
EARNINGS OF ASSOCIATES
|
196 | (3 | ) | 34 | 593 | (629 | ) | 191 | ||||||||||||||||
Interest in earnings of associates, net of tax
|
| | | 20 | | 20 | ||||||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
196 | (3 | ) | 34 | 613 | (629 | ) | 211 | ||||||||||||||||
Discontinued operations, net of tax
|
| | | | | | ||||||||||||||||||
NET INCOME (LOSS)
|
196 | (3 | ) | 34 | 613 | (629 | ) | 211 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests
|
| | | (3 | ) | (4 | ) | (7 | ) | |||||||||||||||
EQUITY ACCOUNT FOR SUBSIDIARIES
|
8 | 211 | 173 | | (392 | ) | | |||||||||||||||||
NET INCOME ATTRIBUTABLE TO WILLIS GROUP HOLDINGS
|
$ | 204 | $ | 208 | $ | 207 | $ | 610 | $ | (1,025 | ) | $ | 204 | |||||||||||
38
Table of Contents
18. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES (Continued) |
Three months ended March 31, 2009 | ||||||||||||||||||||||||
Willis |
||||||||||||||||||||||||
Group |
The Other |
|||||||||||||||||||||||
Holdings | Guarantors | The Issuer | Other | Eliminations | Consolidated | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
REVENUES
|
||||||||||||||||||||||||
Commissions and fees
|
$ | | $ | | $ | | $ | 915 | $ | | $ | 915 | ||||||||||||
Investment income
|
| | | 116 | (103 | ) | 13 | |||||||||||||||||
Other income
|
| | | 2 | | 2 | ||||||||||||||||||
Total revenues
|
| | | 1,033 | (103 | ) | 930 | |||||||||||||||||
EXPENSES
|
||||||||||||||||||||||||
Salaries and benefits
|
| | | (483 | ) | 3 | (480 | ) | ||||||||||||||||
Other operating expenses
|
(1 | ) | | 2 | (146 | ) | 7 | (138 | ) | |||||||||||||||
Depreciation expense
|
| | | (14 | ) | | (14 | ) | ||||||||||||||||
Amortization of intangible assets
|
| | | (21 | ) | (3 | ) | (24 | ) | |||||||||||||||
Total expenses
|
(1 | ) | | 2 | (664 | ) | 7 | (656 | ) | |||||||||||||||
OPERATING (LOSS) INCOME
|
(1 | ) | | 2 | 369 | (96 | ) | 274 | ||||||||||||||||
Investment income from Group undertakings
|
22 | 8 | 38 | 169 | (237 | ) | | |||||||||||||||||
Interest expense
|
| (40 | ) | (7 | ) | (229 | ) | 238 | (38 | ) | ||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND
INTEREST IN EARNINGS OF ASSOCIATES
|
21 | (32 | ) | 33 | 309 | (95 | ) | 236 | ||||||||||||||||
Income taxes
|
| 9 | (9 | ) | (60 | ) | (2 | ) | (62 | ) | ||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INTEREST IN
EARNINGS OF ASSOCIATES
|
21 | (23 | ) | 24 | 249 | (97 | ) | 174 | ||||||||||||||||
Interest in earnings of associates, net of tax
|
| | | 26 | | 26 | ||||||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
21 | (23 | ) | 24 | 275 | (97 | ) | 200 | ||||||||||||||||
Discontinued operations, net of tax
|
| | | 1 | | 1 | ||||||||||||||||||
NET INCOME (LOSS)
|
21 | (23 | ) | 24 | 276 | (97 | ) | 201 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests
|
| | | (2 | ) | (6 | ) | (8 | ) | |||||||||||||||
EQUITY ACCOUNT FOR SUBSIDIARIES
|
172 | 195 | 148 | | (515 | ) | | |||||||||||||||||
NET INCOME ATTRIBUTABLE TO WILLIS GROUP HOLDINGS
|
$ | 193 | $ | 172 | $ | 172 | $ | 274 | $ | (618 | ) | $ | 193 | |||||||||||
39
Table of Contents
18. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES (Continued) |
As at March 31, 2010 | ||||||||||||||||||||||||
Willis |
||||||||||||||||||||||||
Group |
The Other |
|||||||||||||||||||||||
Holdings | Guarantors | The Issuer | Other | Eliminations | Consolidated | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | | $ | | $ | | $ | 196 | $ | | $ | 196 | ||||||||||||
Fiduciary funds restricted
|
| | | 1,675 | | 1,675 | ||||||||||||||||||
Accounts receivable
|
3,757 | 2,059 | 2,528 | 19,523 | (17,339 | ) | 10,528 | |||||||||||||||||
Fixed assets
|
| | | 354 | (2 | ) | 352 | |||||||||||||||||
Goodwill
|
| | | 1,718 | 1,554 | 3,272 | ||||||||||||||||||
Other intangible assets
|
| | | 521 | 30 | 551 | ||||||||||||||||||
Investments in associates
|
| | | 247 | (75 | ) | 172 | |||||||||||||||||
Deferred tax assets
|
| | | 106 | (18 | ) | 88 | |||||||||||||||||
Pension benefits asset
|
| | | 95 | | 95 | ||||||||||||||||||
Other assets
|
8 | 44 | 16 | 851 | (233 | ) | 686 | |||||||||||||||||
Equity accounted subsidiaries
|
2,679 | 3,298 | 2,539 | 2,880 | (11,396 | ) | | |||||||||||||||||
TOTAL ASSETS
|
$ | 6,444 | $ | 5,401 | $ | 5,083 | $ | 28,166 | $ | (27,479 | ) | $ | 17,615 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Accounts payable
|
$ | 4,048 | $ | 6,816 | $ | 1,283 | $ | 16,844 | $ | (17,497 | ) | $ | 11,494 | |||||||||||
Deferred revenue and accrued expenses
|
| | | 337 | (89 | ) | 248 | |||||||||||||||||
Deferred tax liabilities
|
| | | 45 | (18 | ) | 27 | |||||||||||||||||
Income taxes payable
|
45 | 8 | 42 | 73 | (86 | ) | 82 | |||||||||||||||||
Short-term debt
|
| | | 193 | | 193 | ||||||||||||||||||
Long-term debt
|
| | 500 | 1,704 | | 2,204 | ||||||||||||||||||
Liability for pension benefits
|
| | | 179 | | 179 | ||||||||||||||||||
Other liabilities
|
2 | | | 644 | 143 | 789 | ||||||||||||||||||
Total liabilities
|
4,095 | 6,824 | 1,825 | 20,019 | (17,547 | ) | 15,216 | |||||||||||||||||
Total Willis Group Holdings stockholders equity
|
2,349 | (1,423 | ) | 3,258 | 8,140 | (9,975 | ) | 2,349 | ||||||||||||||||
Noncontrolling interests
|
| | | 7 | 43 | 50 | ||||||||||||||||||
Total equity
|
2,349 | (1,423 | ) | 3,258 | 8,147 | (9,932 | ) | 2,399 | ||||||||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 6,444 | $ | 5,401 | $ | 5,083 | $ | 28,166 | $ | (27,479 | ) | $ | 17,615 | |||||||||||
40
Table of Contents
18. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES (Continued) |
As at December 31, 2009 | ||||||||||||||||||||||||
Willis |
||||||||||||||||||||||||
Group |
The Other |
|||||||||||||||||||||||
Holdings | Guarantors | The Issuer | Other | Eliminations | Consolidated | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$ | | $ | | $ | | $ | 191 | $ | | $ | 191 | ||||||||||||
Fiduciary funds restricted
|
| | | 1,683 | | 1,683 | ||||||||||||||||||
Accounts receivable
|
| 698 | 2,489 | 14,720 | (9,269 | ) | 8,638 | |||||||||||||||||
Fixed assets
|
| | | 352 | | 352 | ||||||||||||||||||
Goodwill
|
| | | 1,722 | 1,555 | 3,277 | ||||||||||||||||||
Other intangible assets
|
| | | 542 | 30 | 572 | ||||||||||||||||||
Investments in associates
|
| | | 76 | 80 | 156 | ||||||||||||||||||
Deferred tax assets
|
| | | 97 | (15 | ) | 82 | |||||||||||||||||
Pension benefits asset
|
| | | 69 | | 69 | ||||||||||||||||||
Other assets
|
| 37 | 17 | 989 | (440 | ) | 603 | |||||||||||||||||
Equity accounted subsidiaries
|
2,180 | 3,051 | 2,366 | 2,882 | (10,479 | ) | | |||||||||||||||||
TOTAL ASSETS
|
$ | 2,180 | $ | 3,786 | $ | 4,872 | $ | 23,323 | $ | (18,538 | ) | $ | 15,623 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Accounts payable
|
$ | | $ | 3,040 | $ | 1,289 | $ | 14,769 | $ | (9,412 | ) | $ | 9,686 | |||||||||||
Deferred revenue and accrued expenses
|
| | | 324 | (23 | ) | 301 | |||||||||||||||||
Deferred tax liabilities
|
| | | 44 | (15 | ) | 29 | |||||||||||||||||
Income taxes payable
|
| 1 | 32 | 258 | (245 | ) | 46 | |||||||||||||||||
Short-term debt
|
| | | 209 | | 209 | ||||||||||||||||||
Long-term debt
|
| | 500 | 1,665 | | 2,165 | ||||||||||||||||||
Liability for pension benefits
|
| | | 187 | | 187 | ||||||||||||||||||
Other liabilities
|
| | | 755 | 16 | 771 | ||||||||||||||||||
Total liabilities
|
| 3,041 | 1,821 | 18,211 | (9,679 | ) | 13,394 | |||||||||||||||||
Total Willis Group Holdings stockholders equity
|
2,180 | 745 | 3,051 | 5,108 | (8,904 | ) | 2,180 | |||||||||||||||||
Noncontrolling interests
|
| | | 4 | 45 | 49 | ||||||||||||||||||
Total equity
|
2,180 | 745 | 3,051 | 5,112 | (8,859 | ) | 2,229 | |||||||||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 2,180 | $ | 3,786 | $ | 4,872 | $ | 23,323 | $ | (18,538 | ) | $ | 15,623 | |||||||||||
41
Table of Contents
18. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES (Continued) |
Three months ended March 31, 2010 | ||||||||||||||||||||||||
Willis |
||||||||||||||||||||||||
Group |
The Other |
|||||||||||||||||||||||
Holdings | Guarantors | The Issuer | Other | Eliminations | Consolidated | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
$ | 198 | $ | (27 | ) | $ | 45 | $ | (142 | ) | $ | (1 | ) | $ | 73 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||||||||||
Proceeds on disposal of fixed and intangible assets
|
| | | 2 | | 2 | ||||||||||||||||||
Additions to fixed assets
|
| | | (29 | ) | | (29 | ) | ||||||||||||||||
Acquisitions of subsidiaries, net of cash acquired
|
| | | (13 | ) | | (13 | ) | ||||||||||||||||
Acquisitions of investments in associates
|
| | | (1 | ) | | (1 | ) | ||||||||||||||||
Net cash used in investing activities
|
| | | (41 | ) | | (41 | ) | ||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||||||||||
Proceeds from draw down of revolving credit facility
|
| | | 65 | | 65 | ||||||||||||||||||
Repayments of debt
|
| | | (43 | ) | | (43 | ) | ||||||||||||||||
Proceeds from issue of shares
|
11 | | | | | 11 | ||||||||||||||||||
Amounts owed by and to Group undertakings
|
(209 | ) | 27 | (45 | ) | 227 | | | ||||||||||||||||
Excess tax benefits from share-based payment arrangements
|
| | | (1 | ) | | (1 | ) | ||||||||||||||||
Dividends paid
|
| | | (45 | ) | 1 | (44 | ) | ||||||||||||||||
Acquisition of noncontrolling interests
|
| | | (4 | ) | | (4 | ) | ||||||||||||||||
Dividends paid to noncontrolling interests
|
| | | (1 | ) | | (1 | ) | ||||||||||||||||
Net cash (used in) provided by financing activities
|
(198 | ) | 27 | (45 | ) | 198 | 1 | (17 | ) | |||||||||||||||
INCREASE IN CASH AND CASH EQUIVALENTS
|
| | | 15 | | 15 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
| | | (10 | ) | | (10 | ) | ||||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
| | | 191 | | 191 | ||||||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | | $ | | $ | | $ | 196 | $ | | $ | 196 | ||||||||||||
Cash and cash equivalents reported as discontinued operations
|
| | | | | | ||||||||||||||||||
Cash and cash equivalents reported as continuing operations
|
$ | | $ | | $ | | $ | 196 | $ | | $ | 196 | ||||||||||||
42
Table of Contents
18. | FINANCIAL INFORMATION FOR PARENT GUARANTOR, OTHER GUARANTOR SUBSIDIARIES AND NON-GUARANTOR SUBSIDIARIES (Continued) |
Three months ended March 31, 2009 | ||||||||||||||||||||||||
Willis |
||||||||||||||||||||||||
Group |
The Other |
|||||||||||||||||||||||
Holdings | Guarantors | The Issuer | Other | Eliminations | Consolidated | |||||||||||||||||||
(millions) | ||||||||||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
$ | 22 | $ | (31 | ) | $ | 19 | $ | 80 | $ | (6 | ) | $ | 84 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||||||||||
Proceeds on disposal of fixed and intangible assets
|
| | | 6 | | 6 | ||||||||||||||||||
Additions to fixed assets
|
| | | (17 | ) | | (17 | ) | ||||||||||||||||
Acquisitions of subsidiaries, net of cash acquired
|
| | | (2 | ) | | (2 | ) | ||||||||||||||||
Investments in associates
|
| | | (39 | ) | | (39 | ) | ||||||||||||||||
Proceeds on sale of short-term investments
|
| | | 4 | | 4 | ||||||||||||||||||
Net cash used in investing activities
|
| | | (48 | ) | | (48 | ) | ||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||||||||||
Proceeds from draw down of revolving credit facility
|
| | | 150 | | 150 | ||||||||||||||||||
Proceeds from issue of short-term debt, net of debt issuance
costs
|
| | | 1 | | 1 | ||||||||||||||||||
Repayments of debt
|
| | | (647 | ) | | (647 | ) | ||||||||||||||||
Senior notes issued, net of debt issuance costs
|
| | 482 | | | 482 | ||||||||||||||||||
Proceeds from issue of shares
|
2 | | | | | 2 | ||||||||||||||||||
Amounts owed by and to Group undertakings
|
19 | 31 | (501 | ) | 451 | | | |||||||||||||||||
Dividends paid
|
(43 | ) | | | (6 | ) | 6 | (43 | ) | |||||||||||||||
Acquisition of noncontrolling interests
|
| | | (2 | ) | | (2 | ) | ||||||||||||||||
Dividends paid to noncontrolling interests
|
| | | (1 | ) | | (1 | ) | ||||||||||||||||
Net cash (used in) provided by financing activities
|
(22 | ) | 31 | (19 | ) | (54 | ) | 6 | (58 | ) | ||||||||||||||
DECREASE IN CASH AND CASH EQUIVALENTS
|
| | | (22 | ) | | (22 | ) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
| | | (4 | ) | | (4 | ) | ||||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
| | | 176 | | 176 | ||||||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | | $ | | $ | | $ | 150 | $ | | $ | 150 | ||||||||||||
Cash and cash equivalents reported as discontinued
operations
|
| | | (3 | ) | | (3 | ) | ||||||||||||||||
Cash and cash equivalents continuing operations
|
$ | | $ | | $ | | $ | 147 | $ | | $ | 147 | ||||||||||||
43
Table of Contents
Item 2 | Managements Discussion and Analysis of Financial Condition and Results of Operations |
44
Table of Contents
| reinforce our sales and revenue culture to drive growth; |
| continue to execute our Shaping Our Future initiatives, creating incremental savings to fund growth and leveraging growth opportunities from our global footprint; and |
| continue to strengthen the balance sheet and reduce our debt to EBITDA (earnings before interest, tax, and depreciation and amortization) ratio. |
| increased revenues and a higher margin; |
| increased interest costs reflecting the higher interest rate of 12.875% on the senior unsecured notes issued in March 2009; and |
| a reduction in earnings from associates, mainly reflecting our reduced interest in Gras Savoye. |
| 3 percent organic growth in commissions and fees; |
| an $8 million reduction in severance costs due to fewer positions being eliminated; |
| a favorable period-over-period impact from foreign currency translation, excluding the impact from the devaluation of the Venezuelan currency; |
| a $9 million reduction in pension charges in first quarter 2010 compared with 2009, primarily from |
45
Table of Contents
the closure of our US defined benefit pension plan to future accrual in May 2009; |
| a $12 million charge relating to the devaluation of the Venezuelan currency in January; |
| a $12 million reduction in legacy contingent commissions assumed on the acquisition of HRH partially offset by approximately $2 million of higher standard commissions, see Operating Results Segment Information, North America; |
| an increased charge for share-based compensation, largely due to the non-recurrence of a $5 million credit in first quarter 2009; and |
| a $4 million reduction in investment income driven by lower interest rates in first quarter 2010 compared with 2009. |
| an organic growth program designed to drive revenue growth. This program includes achieving retention and new business metrics across our businesses; increasing the productivity and effectiveness of our revenue-generating employees and recruiting the best talent in the industry; and continued development in key markets and |
potential growth areas such as China, Brazil, Employee Benefits, Facultative and WCMA; | |
| Shaping Our Future which is driving our efficiency and profitability and includes longer term initiatives designed to enhance our infrastructure and processes, and make optimal use of our locations, including our support centers such as the offshore center in Mumbai; and |
| Funding for Growth is the initiative we recently began to manage our cost base. In 2010, we have identified performance management and corporate savings that, as we execute on, will enable us to fund investments such as further investments in technology and new key hires. |
46
Table of Contents
March 31, |
December 31, |
|||||||
2010 | 2009 | |||||||
(millions, except percentages) | ||||||||
Long-term debt
|
$ | 2,204 | $ | 2,165 | ||||
Short-term debt
|
193 | 209 | ||||||
Total debt
|
$ | 2,397 | $ | 2,374 | ||||
Total equity
|
$ | 2,399 | $ | 2,229 | ||||
Capitalization ratio
|
50 | % | 52 | % | ||||
Change attributable to: | ||||||||||||||||||||||||||||
Foreign |
Acquisitions |
Organic |
||||||||||||||||||||||||||
% |
currency |
and |
Contingent |
revenue |
||||||||||||||||||||||||
Three months ended March 31,
|
2010 | 2009 | Change | translation | disposals | commissions(b) | growth(a) | |||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||
Global
|
$ | 301 | $ | 275 | 9 | % | 3 | % | (1 | )% | | % | 7 | % | ||||||||||||||
North America
|
361 | 371 | (3 | )% | | % | | % | (4 | )% | 1 | % | ||||||||||||||||
International
|
301 | 269 | 12 | % | 7 | % | 2 | % | | % | 3 | % | ||||||||||||||||
Commissions and fees
|
$ | 963 | $ | 915 | 5 | % | 3 | % | | % | (1 | )% | 3 | % | ||||||||||||||
Investment income
|
9 | 13 | (31 | )% | ||||||||||||||||||||||||
Other income
|
| 2 | (100 | )% | ||||||||||||||||||||||||
Total revenues
|
$ | 972 | $ | 930 | 5 | % | ||||||||||||||||||||||
(a) | Organic commissions and fees growth excludes: (i) the impact of foreign currency translation; (ii) the first twelve months of net commission and fee revenues generated from acquisitions; (iii) the net commission and fee revenues related to operations disposed of in each period presented; (iv) in North America, legacy contingent commissions assumed as part of the HRH acquisition and that had not been converted into higher standard commission; and (v) investment income and other income from reported revenues. | |
(b) | Included in North America reported commissions and fees were legacy HRH contingent commissions of $8 million in the first quarter of 2010 compared with $20 million in the first quarter of 2009. | |
Our methods of calculating these measures may differ from those used by other companies and therefore comparability may be limited. |
47
Table of Contents
Three months |
||||||||
ended March 31, | ||||||||
2010 | 2009 | |||||||
(millions, except |
||||||||
percentages) | ||||||||
Salaries and benefits
|
$ | 486 | $ | 480 | ||||
Other
|
149 | 138 | ||||||
General and administrative expenses
|
$ | 635 | $ | 618 | ||||
Salaries and benefits as a percentage of revenues
|
50 | % | 52 | % | ||||
Other as percentage of revenues
|
15 | % | 15 | % | ||||
| an $8 million reduction in severance costs. In first quarter 2010 we identified approximately 240 positions that have been or will be eliminated as part of our continued focus on managing expense, this compares with some 300 positions that were eliminated in first quarter 2009; |
| a $9 million net savings in pensions costs mainly reflecting the closure of our US defined benefit pension plan to future accrual in May 2009; |
| strict controls over new hires and replacements, letting go of poor performers and savings from actions taken in prior years, including Shaping Our Future and Right Sizing Willis initiatives in 2008 and 2009 respectively; and |
| a small improvement in productivity per full time equivalent employee (FTE) to $189,000 in the 12 month period to March 31, 2010 compared with $188,000 for full year 2009; |
| a $7 million increase in share-based compensation mainly reflecting the non-recurrence of a $5 million credit in first quarter 2009. The credit in 2009 related to accumulated compensation expense for certain 2008 awards which were dependent upon performance targets which the Company did not achieve; and |
| a $4 million increase in incentive expenses comprising a $10 million increase in the amortization of cash retention awards see below and a $6 million decrease in the accrual for bonuses. |
48
Table of Contents
Three months ended |
||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(millions, except |
||||||||
percentages) | ||||||||
Revenues
|
$ | 972 | $ | 930 | ||||
Operating income
|
301 | 274 | ||||||
Operating margin or operating income as a percentage of revenues
|
31 | % | 29 | % |
| 3 percent organic growth in commissions and fees; |
| a favorable period-over-period impact from foreign currency translation of $13 million, excluding the impact from the devaluation of the Venezuelan currency. This reflects the net benefit of: a stronger period on period Euro which benefits both our net Euroland income and Euro revenues earned in the London market; and lower losses on our forward rate hedging program; partly offset by a negative impact due to the impact of a stronger period on period Pound Sterling on our net sterling expense base; |
| an $8 million reduction in severance costs due to fewer positions being eliminated; and |
| a $9 million reduction in pension charges in first quarter 2010 compared with 2009, mainly from the closure of our US defined benefit pension plan to future accrual in May 2009; |
| a charge of $12 million relating to the devaluation of the Venezuelan currency in January; |
| a $12 million reduction in legacy contingent commissions assumed on the acquisition of HRH; |
| an increased charge for share-based compensation, largely due to the non-recurrence of a $5 million credit in first quarter 2009; and |
| a $4 million reduction in investment income driven by lower interest rates in first quarter 2010 compared with 2009. |
49
Table of Contents
Three months |
||||||||
ended March 31, | ||||||||
2010 | 2009 | |||||||
(millions, except |
||||||||
percentages) | ||||||||
Income before taxes and interest in earnings of associates
|
$ | 258 | $ | 236 | ||||
Income tax charge
|
67 | 62 | ||||||
Effective tax rate
|
26 | % | 26 | % |
Three months |
||||||||
ended March 31, | ||||||||
2010 | 2009 | |||||||
(millions, except per |
||||||||
share data) | ||||||||
Net income from continuing operations
|
$ | 204 | $ | 192 | ||||
Diluted earnings per share from continuing operations
|
$ | 1.20 | $ | 1.15 | ||||
Average diluted number of shares outstanding
|
170 | 167 |
| increased revenues and a higher margin; |
| increased interest costs reflecting the higher coupon on the $500 million of 12.875% senior unsecured notes issued in March 2009; and |
| a reduction in earnings from associates, mainly reflecting our reduced interest in Gras Savoye. |
50
Table of Contents
Three months ended March 31, 2010 | Three months ended March 31, 2009 | |||||||||||||||||||||||
Operating |
Operating |
Operating |
Operating |
|||||||||||||||||||||
Revenues | income | margin | Revenues | income | margin | |||||||||||||||||||
(millions) | (millions) | |||||||||||||||||||||||
Global
|
$ | 303 | $ | 138 | 46 | % | $ | 278 | $ | 127 | 46 | % | ||||||||||||
North America | 365 | 93 | 26 | % | 377 | 94 | 25 | % | ||||||||||||||||
International | 304 | 103 | 34 | % | 275 | 96 | 35 | % | ||||||||||||||||
Total Retail
|
669 | 196 | 29 | % | 652 | 190 | 29 | % | ||||||||||||||||
Corporate &
Other(i)
|
| (33 | ) | n/a | | (43 | ) | n/a | ||||||||||||||||
Total Consolidated
|
$ | 972 | $ | 301 | 31 | % | $ | 930 | $ | 274 | 29 | % | ||||||||||||
(i) | Corporate & Other comprises the following: |
Three months ended |
||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
Amortization of intangible assets
|
$ | (21 | ) | $ | (24 | ) | ||
Foreign exchange hedging
|
| (14 | ) | |||||
HRH integration costs
|
| (3 | ) | |||||
Venezuelan currency devaluation
|
(12 | ) | | |||||
Other
|
| (2 | ) | |||||
$ | (33 | ) | $ | (43 | ) | |||
Three months ended |
||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(millions, except percentages) | ||||||||
Commissions and fees
|
$ | 301 | $ | 275 | ||||
Investment income
|
2 | 3 | ||||||
Total revenues
|
$ | 303 | $ | 278 | ||||
Operating income
|
$ | 138 | $ | 127 | ||||
Organic revenue
growth(a)
|
7 | % | 5 | % | ||||
Operating margin
|
46 | % | 46 | % |
(a) | Organic commissions and fees growth excludes: (i) the impact of foreign currency translation; (ii) the first twelve months of net commission and fee revenues generated from acquisitions; (iii) the net commission and fee revenues related to operations disposed of in each period presented; and (iv) investment income and other income from reported revenues. |
51
Table of Contents
Three months ended |
||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(millions, except |
||||||||
percentages) | ||||||||
Commissions and fees
|
$ | 361 | $ | 371 | ||||
Investment income
|
4 | 4 | ||||||
Other income
|
| 2 | ||||||
Total revenues
|
$ | 365 | $ | 377 | ||||
Operating income
|
$ | 93 | $ | 94 | ||||
Organic revenue
growth(a)
|
1 | % | (5 | )% | ||||
Operating margin
|
26 | % | 25 | % |
(a) | Organic commissions and fees growth excludes: (i) the impact of foreign currency translation; (ii) the first twelve months of net commission and fee revenues generated from acquisitions; (iii) the net commission and fee revenues related to operations disposed of |
52
Table of Contents
in each period presented; (iv) in North America, legacy contingent commissions assumed as part of the HRH acquisition and that had not been converted into higher standard commission; and (v) investment income and other income from reported revenues. | ||
Included in North America reported commissions and fees were legacy HRH contingent commissions of $8 million in the first quarter of 2010 compared with $20 million in the first quarter of 2009. |
| HRH merger synergies realized since first quarter 2009 and disciplined expense management; |
| lower pension charges following the closure of the US defined benefit scheme to accrual in May 2009; and |
| the benefit of organic revenue growth; |
| the $12 million reduction in legacy HRH contingent commissions. |
53
Table of Contents
Three months ended |
||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
(millions, except |
||||||||
percentages) | ||||||||
Commissions and fees
|
$ | 301 | $ | 269 | ||||
Investment income
|
3 | 6 | ||||||
Total revenues
|
$ | 304 | $ | 275 | ||||
Operating income
|
$ | 103 | $ | 96 | ||||
Organic revenue
growth(a)
|
3 | % | 5 | % | ||||
Operating margin
|
34 | % | 35 | % |
(a) | Organic commissions and fees growth excludes: (i) the impact of foreign currency translation; (ii) the first twelve months of net commission and fee revenues generated from acquisitions; (iii) the net commission and fee revenues related to operations disposed of in each period presented; and (iv) investment income and other income from reported revenues. |
54
Table of Contents
| the payment in first quarter 2009 of $39 million in respect of an additional 5 percent interest in Gras Savoye; |
| an increase of $16 million in the net investment in tangible fixed assets in first quarter 2010 compared with the same period in 2009 mainly |
55
Table of Contents
reflecting increased spend on infrastructure projects; and |
| an $11 million increase in acquisitions of subsidiaries, primarily comprising cash payments for the deferred consideration relating to previous acquisitions. |
| a $165 million net outflow in 2009 relating to the repayment/refinancing of $647 million of the then outstanding interim credit facility. As part of the refinancing we issued $500 million of 12.875% senior unsecured notes issued in March 2009 and received net proceeds of $482 million; |
| a $85 million reduction in the drawdown against our revolving credit facility from $150 million in |
first quarter 2009 to $65 million in first quarter 2010; and | |
| first quarter 2010 debt repayments of $43 million comprising: the $27 million mandatory repayment against the 5-year term loan; a repurchase of $7 million of 5.125% senior notes due July 2010; and the repayment of a $9 million fixed rate loan due 2010; |
56
Table of Contents
Item 3 | Quantitative and Qualitative Disclosures about Market Risk |
Item 4 | Controls and Procedures |
57
Table of Contents
Item 1 | Legal Proceedings |
Item 1A | Risk Factors |
Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds |
Number |
Consideration |
|||||||||
Date of Sale
|
of Shares | ($) | Acquisition | |||||||
March 31, 2010
|
1,683 | 60,201 | Willis A/S Denmark | |||||||
March 31, 2010
|
12,181 | 427,795 | Eyl & Gordon Insurance Brokers Inc |
Item 3 | Defaults Upon Senior Securities |
Item 4 | (Removed and Reserved) |
Item 5 | Other Information |
Item 6 | Exhibits |
10 | .1 | The Willis Group Holdings Irish Share Plan | ||
10 | .2 | Form of Performance Based Option Agreement under the Willis Group Holdings 2001 Share Purchase and Option Plan | ||
10 | .3 | Form of Performance Based Option Agreement under the Willis Group Holdings 2008 Share Purchase and Option Plan | ||
10 | .4 | Form of RSU Agreement for Non-Employee Directors under the Willis Group Holdings 2001 Share Purchase and Option Plan | ||
31 | .1 | Certification Pursuant to Rule 13a-14(a) | ||
31 | .2 | Certification Pursuant to Rule 13a-14(a) | ||
32 | .1 | Certification Pursuant to 18 U.S.C. Section 1350 | ||
32 | .2 | Certification Pursuant to 18 U.S.C. Section 1350 |
58
Table of Contents
By: |
/s/ Stephen
Wood
|
59