WILLIS TOWERS WATSON PLC - FORM 8-K - EX-99.1

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8-K - FORM 8-K - WILLIS TOWERS WATSON PLC	d849840d8k.htm

Exhibit 99.1

We present such non-GAAP supplemental financial information, as we believe such information is of interest to the investment community because it provides additional meaningful methods of evaluating certain aspects of the Company’s operating performance from period to period on a basis that may not be otherwise apparent on a GAAP basis. This supplemental financial information should be viewed in addition to, not in lieu of, the Company’s condensed consolidated financial statements.

Reconciliation of reported to underlying net income and reported diluted earnings per share to underlying diluted earnings per share

By Quarter 2011 - 2014


	2011												2012
	Q1			Q2		Q3		Q4		FY			Q1		Q2			Q3		Q4			FY
Net income (loss) attributable to Willis Group Holdings plc		35			84		60		24		203			225		107			26		(804	)		(446	)

Excluding:

Operational improvement program		—			—		—		—		—			—		—			—		—			—
Venezuela currency devaluation		—			—		—		—		—			—		—			—		—			—
2011 Operational review		69			12		11		36		128			—		—			—		—			—
Irrecoverable accounts receivable		—			—		—		13		13			8		—			—		—			8
FSA regulatory settlement		—			11		—		—		11			—		—			—		—			—
Goodwill impairment charge		—			—		—		—		—			—		—			—		458			458
Write-off of cash retention awards		—			—		—		—		—			—		—			—		138			138
Additional incentive accrual		—			—		—		—		—			—		—			—		175			175
Insurance recovery		—			—		—		—		—			—		(3	)		—		(3	)		(6	)
India JV settlement		—			—		—		—		—			—		—			11		—			11
Expense reduction initiative		—			—		—		—		—			—		—			—		—			—
Debt tender fees		—			—		—		—		—			—		—			—		—			—
(Gain) loss on disposal of operations		(4	)		—		—		—		(4	)		—		—			1		2			3
Make-whole premium/loss on extinguishment		124			—		1		6		131			—		—			—		—			—
Deferred tax valuation allowance		—			—		—		—		—			—		—			—		113			113
Foreign currency movements		(3	)		11		1		—		9			—		—			—		—			—


Underlying net income		221			118		73		79		491			233		104			38		79			454


	2011												2012
	Q1			Q2		Q3		Q4		FY			Q1		Q2			Q3		Q4			FY

Reported diluted earnings per share		0.20			0.48		0.34		0.14		1.15			1.28		0.61			0.15		(4.65	)		(2.58	)

Excluding:

Operational improvement program		—			—		—		—		—			—		—			—		—			—
Venezuela currency devaluation		—			—		—		—		—			—		—			—		—			—
2011 Operational review		0.40			0.07		0.06		0.20		0.73			—		—			—		—			—
Irrecoverable accounts receivable		—			—		—		0.07		0.08			0.04		—			—		—			0.05
FSA regulatory settlement		—			0.06		—		—		0.06			—		—			—		—			—
Goodwill impairment charge		—			—		—		—		—			—		—			—		2.62			2.60
Write-off of cash retention awards		—			—		—		—		—			—		—			—		0.79			0.78
Additional incentive accrual		—			—		—		—		—			—		—			—		1.00			0.99
Insurance recovery		—			—		—		—		—			—		(0.02	)		—		(0.02	)		(0.03	)
India JV settlement		—			—		—		—		—			—		—			0.06		—			0.06
Expense reduction initiative		—			—		—		—		—			—		—			—		—			—
Debt tender fees		—			—		—		—		—			—		—			—		—			—
(Gain) loss on disposal of operations		(0.02	)		—		—		—		(0.02	)		—		—			0.01		0.01			0.02
Make-whole premium/loss on extinguishment		0.71			—		0.01		0.04		0.74			—		—			—		—			—
Deferred tax valuation allowance		—			—		—		—		—			—		—			—		0.64			0.64
Dilutive impact of potentially issuable shares		—			—		—		—		—			—		—			—		0.06			0.05
Foreign currency movements		(0.02	)		0.06		0.01		—		0.05			—		—			—		—			—


Underlying diluted earnings per share		1.27			0.67		0.42		0.45		2.79			1.32		0.59			0.22		0.45			2.58


Diluted share count		174			176		176		176		176			176		176			175		175			176

Underlying net income and underlying diluted EPS: Underlying net income and underlying diluted EPS for the 2011 periods has been rebased to the 2012 period exchange rates to remove the impact of foreign currency movements when comparing periods.

Page 1 of 3

Reconciliation of reported to underlying net income and reported diluted earnings per share to underlying diluted earnings per share

By Quarter 2011 - 2014


	2012													2013
	Q1		Q2			Q3		Q4			FY			Q1		Q2		Q3			Q4			FY
Net income (loss) attributable to Willis Group Holdings plc		225		107			26		(804	)		(446	)		219		105		(27	)		68			365

Excluding:

Operational improvement program		—		—			—		—			—			—		—		—			—			—
Venezuela currency devaluation		—		—			—		—			—			—		—		—			—			—
2011 Operational review		—		—			—		—			—			—		—		—			—			—
Irrecoverable accounts receivable		8		—			—		—			8			—		—		—			—			—
FSA regulatory settlement		—		—			—		—			—			—		—		—			—			—
Goodwill impairment charge		—		—			—		458			458			—		—		—			—			—
Write-off of cash retention awards		—		—			—		138			138			—		—		—			—			—
Additional incentive accrual		—		—			—		175			175			—		—		—			—			—
Insurance recovery		—		(3	)		—		(3	)		(6	)		—		—		—			—			—
India JV settlement		—		—			11		—			11			—		—		—			—			—
Expense reduction initiative		—		—			—		—			—			38		—		—			—			38
Debt tender fees		—		—			—		—			—			—		—		1			—			1
(Gain) loss on disposal of operations		—		—			1		2			3			—		—		—			(1	)		(1	)
Make-whole premium/loss on extinguishment		—		—			—		—			—			—		—		60			—			60
Deferred tax valuation allowance		—		—			—		113			113			—		—		—			9			9
Foreign currency movements		2		(9	)		—		3			(4	)		—		—		—			—			—


Underlying net income		235		95			38		82			450			257		105		34			76			472


	2012													2013
	Q1		Q2			Q3		Q4			FY			Q1		Q2		Q3			Q4			FY

Reported diluted earnings per share		1.28		0.61			0.15		(4.65	)		(2.58	)		1.24		0.59		(0.15	)		0.37			2.04

Excluding:

Operational improvement program		—		—			—		—			—			—		—		—			—			—
Venezuela currency devaluation		—		—			—		—			—			—		—		—			—			—
2011 Operational review		—		—			—		—			—			—		—		—			—			—
Irrecoverable accounts receivable		0.04		—			—		—			0.05			—		—		—			—			—
FSA regulatory settlement		—		—			—		—			—			—		—		—			—			—
Goodwill impairment charge		—		—			—		2.62			2.60			—		—		—			—			—
Write-off of cash retention awards		—		—			—		0.79			0.78			—		—		—			—			—
Additional incentive accrual		—		—			—		1.00			0.99			—		—		—			—			—
Insurance recovery		—		(0.02	)		—		(0.02	)		(0.03	)		—		—		—			—			—
India JV settlement		—		—			0.06		—			0.06			—		—		—			—			—
Expense reduction initiative		—		—			—		—			—			0.22		—		—			—			0.21
Debt tender fees		—		—			—		—			—			—		—		0.01			—			0.01
(Gain) loss on disposal of operations		—		—			0.01		0.01			0.02			—		—		—			—			(0.01	)
Make-whole premium/loss on extinguishment		—		—			—		—			—			—		—		0.33			—			0.34
Deferred tax valuation allowance		—		—			—		0.64			0.64			—		—		—			0.05			0.05
Dilutive impact of potentially issuable shares		—		—			—		0.06			0.05			—		—		—			—			—
Foreign currency movements		0.01		(0.05	)		—		0.02			(0.02	)		—		—		—			—			—


Underlying diluted earnings per share		1.33		0.54			0.22		0.47			2.56			1.46		0.59		0.19			0.42			2.64


Diluted share count		176		176			175		175			176			176		178		180			182			179

Underlying net income and underlying diluted EPS: Underlying net income and underlying diluted EPS for the 2012 periods has been rebased to the 2013 period exchange rates to remove the impact of foreign currency movements when comparing periods.

Page 2 of 3

Reconciliation of reported to underlying net income and reported diluted earnings per share to underlying diluted earnings per share

By Quarter 2011 - 2014


	2013												2014
	Q1			Q2			Q3			YTD			Q1		Q2		Q3			YTD
Net income (loss) attributable to Willis Group Holdings plc		219			105			(27	)		297			246		47		(7	)		286

Excluding:

Operational improvement program		—			—			—			—			—		2		14			16
Venezuela currency devaluation		—			—			—			—			—		13		—			13
2011 Operational review		—			—			—			—			—		—		—			—
Irrecoverable accounts receivable		—			—			—			—			—		—		—			—
FSA regulatory settlement		—			—			—			—			—		—		—			—
Goodwill impairment charge		—			—			—			—			—		—		—			—
Write-off of cash retention awards		—			—			—			—			—		—		—			—
Additional incentive accrual		—			—			—			—			—		—		—			—
Insurance recovery		—			—			—			—			—		—		—			—
India JV settlement		—			—			—			—			—		—		—			—
Expense reduction initiative		38			—			—			38			—		—		—			—
Debt tender fees		—			—			1			1			—		—		—			—
(Gain) loss on disposal of operations		—			—			—			—			2		—		—			2
Make-whole premium/loss on extinguishment		—			—			60			60			—		—		—			—
Deferred tax valuation allowance		—			—						—			—		21		—			21
Foreign currency movements		(6	)		(5	)		(18	)		(29	)		—		—		—			—


Underlying net income		251			100			16			367			248		83		7			338


	2013												2014
	Q1			Q2			Q3			YTD			Q1		Q2		Q3			YTD

Reported diluted earnings per share		1.24			0.59			(0.15	)		1.67			1.35		0.26		(0.04	)		1.57

Excluding:

Operational improvement program		—			—			—			—			—		0.01		0.08			0.09
Venezuela currency devaluation		—			—			—			—			—		0.07		—			0.07
2011 Operational review		—			—			—			—			—		—		—			—
Irrecoverable accounts receivable		—			—			—			—			—		—		—			—
FSA regulatory settlement		—			—			—			—			—		—		—			—
Goodwill impairment charge		—			—			—			—			—		—		—			—
Write-off of cash retention awards		—			—			—			—			—		—		—			—
Additional incentive accrual		—			—			—			—			—		—		—			—
Insurance recovery		—			—			—			—			—		—		—			—
India JV settlement		—			—			—			—			—		—		—			—
Expense reduction initiative		0.22			—			—			0.21			—		—		—			—
Debt tender fees		—			—			0.01			0.01			—		—		—			—
(Gain) loss on disposal of operations		—			—			—			—			0.01		—		—			0.01
Make-whole premium/loss on extinguishment		—			—			0.33			0.33			—		—		—			—
Deferred tax valuation allowance		—			—			—			—			—		0.12		—			0.12
Dilutive impact of potentially issuable shares		—			—			—			—			—		—		—			—
Foreign currency movements		(0.03	)		(0.03	)		(0.10	)		(0.16	)		—		—		—			—


Underlying diluted earnings per share		1.43			0.56			0.09			2.06			1.36		0.46		0.04			1.86


Diluted share count		176			178			177			178			182		182		178			182

Underlying net income and underlying diluted EPS: Underlying net income and underlying diluted EPS for the 2013 periods has been rebased to the 2014 period exchange rates to remove the impact of foreign currency movements when comparing periods.

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WILLIS TOWERS WATSON PLC - FORM 8-K - EX-99.1 - January 12, 2015

Attached files

WILLIS TOWERS WATSON PLC Reports