WILLIS TOWERS WATSON PLC Revenue Disclosure
Note 4 — Revenue
Disaggregation of Revenue
The Company reports revenue by segment in Note 5 — Segment Information. The following table presents revenue by service offering and segment, as well as reconciliations to total revenue for the years ended December 31, 2025, 2024 and 2023. Along with reimbursable expenses and other, total revenue by service offering represents our revenue from customer contracts.
Year Ended |
|
Broking |
|
|
Consulting |
|
|
Outsourced |
|
|
Other |
|
|
Total revenue by service offering |
|
|
Reimbursable expenses and other (i) |
|
|
Total revenue from customer contracts |
|
|
Interest and other income |
|
|
Total revenue |
|
|||||||||
HWC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2025 |
|
$ |
882 |
|
|
$ |
2,849 |
|
|
$ |
1,096 |
|
|
$ |
390 |
|
|
$ |
5,217 |
|
|
$ |
74 |
|
|
$ |
5,291 |
|
|
$ |
37 |
|
|
$ |
5,328 |
|
2024 |
|
|
1,613 |
|
|
|
2,668 |
|
|
|
1,091 |
|
|
|
363 |
|
|
|
5,735 |
|
|
|
69 |
|
|
|
5,804 |
|
|
|
42 |
|
|
|
5,846 |
|
2023 |
|
|
1,531 |
|
|
|
2,594 |
|
|
|
1,078 |
|
|
|
349 |
|
|
|
5,552 |
|
|
|
73 |
|
|
|
5,625 |
|
|
|
30 |
|
|
|
5,655 |
|
R&B |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2025 |
|
|
3,452 |
|
|
|
435 |
|
|
|
69 |
|
|
|
254 |
|
|
|
4,210 |
|
|
|
12 |
|
|
|
4,222 |
|
|
|
124 |
|
|
|
4,346 |
|
2024 |
|
|
3,196 |
|
|
|
396 |
|
|
|
76 |
|
|
|
243 |
|
|
|
3,911 |
|
|
|
13 |
|
|
|
3,924 |
|
|
|
127 |
|
|
|
4,051 |
|
2023 |
|
|
2,947 |
|
|
|
378 |
|
|
|
81 |
|
|
|
222 |
|
|
|
3,628 |
|
|
|
13 |
|
|
|
3,641 |
|
|
|
107 |
|
|
|
3,748 |
|
Corporate (i) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2025 |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
3 |
|
|
|
31 |
|
|
|
34 |
|
2024 |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
9 |
|
|
|
11 |
|
|
|
22 |
|
|
|
33 |
|
2023 |
|
|
8 |
|
|
|
14 |
|
|
|
— |
|
|
|
— |
|
|
|
22 |
|
|
|
16 |
|
|
|
38 |
|
|
|
42 |
|
|
|
80 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2025 |
|
$ |
4,334 |
|
|
$ |
3,285 |
|
|
$ |
1,165 |
|
|
$ |
644 |
|
|
$ |
9,428 |
|
|
$ |
88 |
|
|
$ |
9,516 |
|
|
$ |
192 |
|
|
$ |
9,708 |
|
2024 |
|
$ |
4,809 |
|
|
$ |
3,066 |
|
|
$ |
1,167 |
|
|
$ |
606 |
|
|
$ |
9,648 |
|
|
$ |
91 |
|
|
$ |
9,739 |
|
|
$ |
191 |
|
|
$ |
9,930 |
|
2023 |
|
$ |
4,486 |
|
|
$ |
2,986 |
|
|
$ |
1,159 |
|
|
$ |
571 |
|
|
$ |
9,202 |
|
|
$ |
102 |
|
|
$ |
9,304 |
|
|
$ |
179 |
|
|
$ |
9,483 |
|
Interest and other income is included in segment revenue and total revenue, however it has been presented separately in the above tables because it does not arise directly from contracts with customers. The significant components of interest and other income are as follows for the periods presented above:
|
|
Year Ended December 31, |
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
Book-of-business settlements |
|
|
Interest income |
|
|
Other income |
|
|
Total |
|
||||||||||||||||||||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
||||||||||||
HWC |
|
$ |
7 |
|
|
$ |
8 |
|
|
$ |
1 |
|
|
$ |
29 |
|
|
$ |
32 |
|
|
$ |
25 |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
4 |
|
|
$ |
37 |
|
|
$ |
42 |
|
|
$ |
30 |
|
R&B |
|
|
21 |
|
|
|
14 |
|
|
|
25 |
|
|
|
97 |
|
|
|
112 |
|
|
|
79 |
|
|
|
6 |
|
|
|
1 |
|
|
|
3 |
|
|
|
124 |
|
|
|
127 |
|
|
|
107 |
|
Corporate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
22 |
|
|
|
41 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
31 |
|
|
|
22 |
|
|
|
42 |
|
Total interest and other income |
|
$ |
28 |
|
|
$ |
22 |
|
|
$ |
26 |
|
|
$ |
156 |
|
|
$ |
166 |
|
|
$ |
145 |
|
|
$ |
8 |
|
|
$ |
3 |
|
|
$ |
8 |
|
|
$ |
192 |
|
|
$ |
191 |
|
|
$ |
179 |
|
As a result of the cessation of the co-broking agreement with Gallagher, (see Note 3 — Acquisitions and Divestitures) interest income associated with fiduciary funds is now allocated more directly to the Risk and Broking segment beginning in the third quarter of 2023. These amounts were previously allocated to the Corporate segment following the disposal of Willis Re.
The following table presents revenue from service offerings by the geography where our work was performed for the years ended December 31, 2025, 2024 and 2023. The reconciliations to total revenue on our consolidated statements of comprehensive income and to segment revenue is shown in the table above.
Year Ended |
|
North America |
|
|
Europe |
|
|
International |
|
|
Total revenue by geography |
|
||||
HWC |
|
|
|
|
|
|
|
|
|
|
|
|
||||
2025 |
|
$ |
3,054 |
|
|
$ |
1,637 |
|
|
$ |
526 |
|
|
$ |
5,217 |
|
2024 |
|
|
3,780 |
|
|
|
1,475 |
|
|
|
480 |
|
|
|
5,735 |
|
2023 |
|
|
3,738 |
|
|
|
1,362 |
|
|
|
452 |
|
|
|
5,552 |
|
R&B |
|
|
|
|
|
|
|
|
|
|
|
|
||||
2025 |
|
|
1,550 |
|
|
|
2,008 |
|
|
|
652 |
|
|
|
4,210 |
|
2024 |
|
|
1,486 |
|
|
|
1,816 |
|
|
|
609 |
|
|
|
3,911 |
|
2023 |
|
|
1,400 |
|
|
|
1,668 |
|
|
|
560 |
|
|
|
3,628 |
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
||||
2025 |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
2024 |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
2023 |
|
|
8 |
|
|
|
12 |
|
|
|
2 |
|
|
|
22 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
||||
2025 |
|
$ |
4,605 |
|
|
$ |
3,645 |
|
|
$ |
1,178 |
|
|
$ |
9,428 |
|
2024 |
|
$ |
5,268 |
|
|
$ |
3,291 |
|
|
$ |
1,089 |
|
|
$ |
9,648 |
|
2023 |
|
$ |
5,146 |
|
|
$ |
3,042 |
|
|
$ |
1,014 |
|
|
$ |
9,202 |
|
Contract Balances
The Company reports accounts receivable, net on the consolidated balance sheets, which includes billed and unbilled receivables and current contract assets. In addition to accounts receivable, net, the Company had the following non-current receivable and deferred revenue balances at December 31, 2025 and 2024:
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||
Billed receivables, net of allowance for doubtful accounts of $30 million and $36 |
|
$ |
1,833 |
|
|
$ |
1,604 |
|
Unbilled receivables |
|
|
543 |
|
|
|
569 |
|
Current contract assets |
|
|
326 |
|
|
|
321 |
|
Accounts receivable, net |
|
$ |
2,702 |
|
|
$ |
2,494 |
|
Non-current accounts receivable, net |
|
$ |
42 |
|
|
$ |
18 |
|
Deferred revenue |
|
$ |
700 |
|
|
$ |
732 |
|
The Company receives payments from customers based on billing schedules or terms as written in our contracts. Those balances denoted as contract assets relate to situations where we have completed some or all performance under the contract, however our right to consideration is conditional. Contract assets result most materially in our Medicare intermediary businesses. Billed and unbilled receivables are recorded when the right to consideration becomes unconditional. Deferred revenue relates to payments received in advance of performance under the contract and is recognized as revenue as (or when) we perform under the contract.
During the year ended December 31, 2025, revenue of approximately $580 million was recognized that was reflected as deferred revenue at December 31, 2024.
During the year ended December 31, 2025, the Company recognized revenue of approximately $5 million related to performance obligations satisfied in a prior period.
Accounts receivable are stated at estimated net realizable values. The following table presents the changes in our allowance for doubtful accounts for the years ended December 31, 2025, 2024 and 2023.
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||
Balance at beginning of year |
|
$ |
36 |
|
|
$ |
34 |
|
|
$ |
46 |
|
Additions charged to costs and expenses |
|
|
6 |
|
|
|
13 |
|
|
|
6 |
|
Deductions/other movements |
|
|
3 |
|
|
|
(12 |
) |
|
|
(21 |
) |
Foreign exchange |
|
|
(15 |
) |
|
|
1 |
|
|
|
3 |
|
Balance at end of year |
|
$ |
30 |
|
|
$ |
36 |
|
|
$ |
34 |
|
Performance Obligations
The Company has contracts for which performance obligations have not been satisfied as of December 31, 2025 or have been partially satisfied as of this date. The following table shows the expected timing for the satisfaction of the remaining performance obligations. This table does not include contract renewals or variable consideration, which was excluded from the transaction prices in accordance with the guidance on constraining estimates of variable consideration.
In addition, in accordance with ASC 606, the Company has elected not to disclose the remaining performance obligations when one or both of the following circumstances apply:
|
|
2026 |
|
|
2027 |
|
|
2028 onward |
|
|
Total |
|
||||
Revenue expected to be recognized on contracts as of |
|
$ |
686 |
|
|
$ |
440 |
|
|
$ |
425 |
|
|
$ |
1,551 |
|
Since most of the Company’s contracts are cancellable with less than one year’s notice and have no substantive penalty for cancellation, the majority of the Company’s remaining performance obligations as of December 31, 2025 have been excluded from the table above.
Costs to Obtain or Fulfill a Contract
The Company incurs costs to obtain or fulfill contracts which it would not incur if a contract with a customer was not executed.
The following table shows the categories of costs that are capitalized and deferred over the expected life of a contract.
|
|
Costs to fulfill |
|
|
Costs to obtain (i) |
|
||||||||||||||
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||
Balance at beginning of the year |
|
$ |
238 |
|
|
$ |
218 |
|
|
$ |
197 |
|
|
$ |
2 |
|
|
$ |
— |
|
New capitalized costs |
|
|
503 |
|
|
|
493 |
|
|
|
458 |
|
|
|
12 |
|
|
|
3 |
|
Amortization |
|
|
(495 |
) |
|
|
(470 |
) |
|
|
(441 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
Foreign currency translation |
|
|
8 |
|
|
|
(3 |
) |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
Balance at end of the year |
|
$ |
254 |
|
|
$ |
238 |
|
|
$ |
218 |
|
|
$ |
13 |
|
|
$ |
2 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.