Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Towers Watson — Corporate Update (January 2018)
11 slides from Willis Towers Watson Public's corporate update, Jan 10, 2018
Slide 1: New Revenue and Pension Accounting Standards and Related Effects on Investor Metrics
willistowerswatson.com New Revenue and Pension Accounting Standards and Related Effects on Investor Metrics January 10, 2018 © 2018 Willis Towers Watson. All rights reserved.
Slide 2: Forward Looking Statements
willistowerswatson.com Forward Looking Statements This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this document by words such as “may”, “will”, “w
Slide 3: Agenda
willistowerswatson.com Agenda Executive summary Impact of the new revenue standard by segment Impact of new pension accounting standard Summary 3 © 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
Slide 4: Executive summary
willistowerswatson.com Executive summary Willis Towers Watson (WTW) will adopt the new revenue standard, ASC 606, as of January 1, 2018 We expect no significant changes in our revenues and costs on a year over year basis as a result of ASC 606 The ASC 606 methodology will create seasonal chang
Slide 5: Benefits Delivery and Administration (BDA)
willistowerswatson.com Benefits Delivery and Administration (BDA) Under ASC 606, revenues associated with our Individual Marketplace (formerly retirees) must be recognized as the policy is sold. Under the previous U.S. GAAP revenue recognition standard, revenues were recognized ratably over the an
Slide 6: Human Capital and Benefits (HCB)
willistowerswatson.com Human Capital and Benefits (HCB) ASC 606 will impact the HCB Segment as follows: We expect there will be some changes in the pattern of revenue recognition, mainly associated with the H&B broking line of business. These revenues are currently recognized at a specific point i
Slide 7: Investment, Risk and Reinsurance (IRR)
willistowerswatson.com Investment, Risk and Reinsurance (IRR) ASC 606 will impact the following revenue items, but these impacts may somewhat offset each other: Acceleration of pro-rata Treaty Reinsurance revenues placed in 2018. Pro-rata Treaty Reinsurance accounts for approximately 5% of total I
Slide 8: Corporate Risk and Broking (CRB)
willistowerswatson.com Corporate Risk and Broking (CRB) ACS 606 should have little impact on the pattern of our revenue recognition. However, the new revenue standard will impact the period in which we recognize placement-related expenses. Currently the placement expenses are recognized as inc
Slide 9: Total Company - Illustrative Examples
willistowerswatson.com Total Company Impact of ASC 606 - Illustrative Examples 9 © 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. $0 $2,000 $4,000 $6,000 $8,000 $10,000 Q1 Q2 Q3 Q4 Total Willis Towers W
Slide 10: Presentation of net periodic pension cost effective January 1, 2018
willistowerswatson.com Presentation of net periodic pension cost effective January 1, 2018; applied retrospectively In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The impacts of the change are: T
Slide 11: Summary
willistowerswatson.com Summary 2018 Performance should be easy to track as the financial results will be reported on two different bases: ASC 606 and the revenue recognition methodology used through December 31, 2017. Most GAAP and non-GAAP measures are expected not to change materially under ASC 60
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