EX-99.2 2 cfuexhibit992.htm EXHIBIT 99.2 FEB142017 Exhibit


Exhibit 99.2
WILLIS TOWERS WATSON
Consolidated Statements of Cash Flows
(in millions of U.S. dollars)
 
Year ended December 31,
 
 
 
(As Revised)
 
(As Reported)
 
Change
 
2016
 
2016
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
NET INCOME
$
330

 
$
330

 
$
—

Adjustments to reconcile net income to total net cash from operating activities:
 
 
 
 
 
Depreciation
178

 
178

 
—

Amortization
591

 
591

 
—

Net periodic benefit of defined benefit pension plans
(93
)
 
(93
)
 
—

Provision for doubtful receivables from clients
36

 
36

 
—

(Benefit from)/provision for deferred income taxes
(136
)
 
(136
)
 
—

Share-based compensation
123

 
123

 
—

Non-cash foreign exchange (gain)/loss
(28
)
 
(28
)
 
—

Net gain on disposal of operations and fixed and intangible assets and gain on remeasurement of equity interests
—

 
—

 
—

Other, net
27

 
27

 
—

Changes in operating assets and liabilities, net of effects from purchase of subsidiaries:
 
 
 
 
—

Accounts receivable
(101
)
 
(101
)
 
—

Fiduciary assets
(249
)
 
(249
)
 
—

Fiduciary liabilities
249

 
249

 
—

Other assets
(233
)
 
22

 
(255
)
Other liabilities
162

 
(44
)
 
206

Movement on provisions
64

 
62

 
2

Net cash from operating activities
920

 
967

 
(47
)
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES
 
 
 
 
 
Additions to fixed assets and software for internal use
(218
)
 
(222
)
 
4

Capitalized software costs
(85
)
 
(85
)
 
—

Acquisitions of operations, net of cash acquired
476

 
476

 
—

Net (cash paid)/proceeds from sale of operations
(1
)
 
(1
)
 
—

Other, net
23

 
20

 
3

Net cash from/(used in) investing activities
195

 
188

 
7

CASH FLOWS (USED IN)/FROM FINANCING ACTIVITIES
 
 
 
 
 
Net (payments on)/borrowings on revolving credit facility
(237
)
 
(237
)
 
—

Senior notes issued
1,606

 
1,606

 
—

Proceeds from issuance of other debt
404

 
404

 
—

Debt issuance costs
(14
)
 
(14
)
 
—

Repayments of debt
(1,901
)
 
(1,901
)
 
—

Repurchase of shares
(396
)
 
(396
)
 
—

Proceeds from issuance of shares and excess tax benefit
63

 
14

 
49

Payments of deferred and contingent consideration related to acquisitions
(67
)
 
(67
)
 
—

Dividends paid
(199
)
 
(199
)
 
—

Acquisitions of and dividends paid to noncontrolling interests
(21
)
 
(12
)
 
(9
)
Net cash (used in)/from financing activities
(762
)
 
(802
)
 
40

INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
353

 
353

 
—

Effect of exchange rate changes on cash and cash equivalents
(15
)
 
(15
)
 
—

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
532

 
532

 
—

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
870

 
$
870

 
$
—