Fair Value Measurements and Investments (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present our assets and liabilities measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025:


		Fair Value Measurements on a Recurring Basis at June 30, 2026
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities:
Mutual funds/exchange traded funds (i)	Prepaid and other current assets and Other non-current assets	$	154	$	—	$	—	$	154
	Fiduciary assets		529		—		—		529
Debt securities	Prepaid and other current assets and Other non-current assets		52		—		—		52
Commingled funds (i) (ii)	Prepaid and other current assets and Other non-current assets		—		—		—		33
Hedge funds (i) (iii)	Prepaid and other current assets and Other non-current assets		—		—		—		29
Derivatives:
Derivative financial instruments (iv)	Prepaid and other current assets and Other non-current assets	$	—	$	2	$	—	$	2
Liabilities:
Contingent consideration:
Contingent consideration (v)	Other current liabilities and Other non-current liabilities	$	—	$	—	$	77	$	77
Derivatives:
Derivative financial instruments (iv)	Other current liabilities and Other non-current liabilities	$	—	$	2	$	—	$	2


		Fair Value Measurements on a Recurring Basis at December 31, 2025
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale securities:
Mutual funds/exchange traded funds (i)	Prepaid and other current assets and Other non-current assets	$	145	$	—	$	—	$	145
	Fiduciary assets		448		—		—		448
Commingled funds (i) (ii)	Prepaid and other current assets and Other non-current assets		—		—		—		31
Hedge funds (i) (iii)	Prepaid and other current assets and Other non-current assets		—		—		—		28
Derivatives:
Derivative financial instruments (iv)	Prepaid and other current assets and Other non-current assets	$	—	$	5	$	—	$	5
Liabilities:
Contingent consideration:
Contingent consideration (v)	Other current liabilities and Other non-current liabilities	$	—	$	—	$	14	$	14
Derivatives:
Derivative financial instruments (iv)	Other current liabilities and Other non-current liabilities	$	—	$	1	$	—	$	1

(i)

With the exception of the funds included in fiduciary assets, the majority of these balances are held as part of deferred compensation plans with related liabilities in other current liabilities and other non-current liabilities on the condensed consolidated balance sheets.

(ii)

Consists of the Towers Watson Global Equity Focus Fund, for which redemptions can occur on any business day, and require a minimum of one business day’s notice.

(iii)

Consists of the Towers Watson Alternative Credit Fund, for which the redemption period is generally quarterly, however requires a 50-day notice.

(iv)

See Note 8 — Derivative Financial Instruments for further information on our derivative contracts.

(v)

At June 30, 2026 and December 31, 2025, represents consideration due to be paid across multiple years until 2031 and 2029, respectively. Probability weightings are based on our knowledge of the past and planned performance of the acquired entity to which the contingent consideration applies. The fair value weighted-average discount rates used in our material contingent consideration calculations were 13.17% and 11.00% at June 30, 2026 and December 31, 2025, respectively. The range of these discount rates was 11.00% - 13.40% at June 30, 2026. Using different probability weightings and discount rates could result in an increase or decrease of the contingent consideration payable.

Schedule of Change in Fair Value of Level 3 Liabilities

The following table summarizes the change in fair value of the Level 3 liabilities:


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)	June 30, 2026
Balance at December 31, 2025	$	14
Obligations assumed		65
Payments		(2	)
Realized and unrealized losses (i)		—
Foreign exchange		—
Balance at June 30, 2026	$	77

(i)

Realized and unrealized losses include accretion and adjustments to contingent consideration liabilities, which are included within Interest expense and Other operating expenses, respectively, on the condensed consolidated statements of comprehensive income.

Schedule of Assets and Liabilities Whose Carrying Values Differ From the Fair Value and are Not Measured on a Recurring Basis

The following tables present our assets and liabilities not measured at fair value on a recurring basis, as well as information about our available-for-sale securities, at June 30, 2026 and December 31, 2025:


	June 30, 2026				December 31, 2025
Assets:	Amortized Cost		Fair Value		Carrying Value		Fair Value
Debt securities (i):
Due in one year or less	$	8	$	8	$	8	$	8
Due in one year through five years	$	42	$	42	$	42	$	42
Due in greater than five years	$	2	$	2	$	1	$	1

Liabilities:	Carrying Value		Fair Value		Carrying Value		Fair Value
Current debt	$	749	$	751	$	550	$	550
Long-term debt	$	5,781	$	5,581	$	5,756	$	5,618

(i)

Consists of available-for-sale securities at June 30, 2026 and held-to-maturity securities at December 31, 2025. At June 30, 2026, the available-for-sale securities are carried at fair value.