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• | Commissions, fees and other and Fiduciary investment income are now reported as one Total revenue line item; and |
• | Other general expenses has been further broken out to provide greater clarity into charges related to Information technology, Premises, Depreciation of fixed assets, and Amortization and impairment of intangible assets. |
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• | An increase to Deferred tax assets on the Condensed Consolidated Statement of Financial Position of approximately $49 million through a cumulative-effect adjustment to Retained earnings for excess tax benefits not previously recognized, and |
• | The recognition of $5 million, or $0.02 per share, income tax benefit from continuing operations related to excess tax benefits in the Condensed Consolidated Statement of Income for the three months ended September 30, 2017, and $53 million, or $0.20 per share, for the nine months ended September 30, 2017. |
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Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenue | ||||||||||||||||
Total revenue | $ | — | $ | 559 | $ | 698 | $ | 1,606 | ||||||||
Expenses | ||||||||||||||||
Total operating expenses | 14 | 491 | 640 | 1,443 | ||||||||||||
Operating income from discontinued operations | (14 | ) | 68 | 58 | 163 | |||||||||||
Other income | (1 | ) | (1 | ) | 10 | — | ||||||||||
Income from discontinued operations before income taxes | (15 | ) | 67 | 68 | 163 | |||||||||||
Income taxes | (6 | ) | 25 | 14 | 61 | |||||||||||
Income from discontinued operations excluding gain, net of tax | (9 | ) | 42 | 54 | 102 | |||||||||||
Gain on sale of discontinued operations, net of tax | 5 | — | 803 | — | ||||||||||||
Income from discontinued operations, net of tax | $ | (4 | ) | $ | 42 | $ | 857 | $ | 102 |
September 30, 2017 (1) | December 31, 2016 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | — | $ | 5 | ||||
Receivables, net | — | 483 | ||||||
Fiduciary assets | — | 526 | ||||||
Goodwill | — | 1,337 | ||||||
Intangible assets, net | — | 333 | ||||||
Fixed assets, net | — | 215 | ||||||
Other assets | — | 295 | ||||||
TOTAL ASSETS | $ | — | $ | 3,194 | ||||
LIABILITIES | ||||||||
Accounts payable and accrued liabilities | $ | — | $ | 197 | ||||
Fiduciary liabilities | — | 526 | ||||||
Other liabilities | — | 356 | ||||||
TOTAL LIABILITIES | $ | — | $ | 1,079 |
(1) | All assets and liabilities associated with the Divested Business were sold on May 1, 2017. |
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|
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Foreign currency remeasurement gain (loss) | $ | (20 | ) | $ | 3 | $ | (32 | ) | $ | (14 | ) | ||||
Gain (loss) on disposal of business | — | — | (2 | ) | 41 | ||||||||||
Equity earnings | 2 | 4 | 11 | 7 | |||||||||||
Gain (loss) on financial instruments | 16 | 3 | 6 | (7 | ) | ||||||||||
Other | (3 | ) | — | (3 | ) | — | |||||||||
Total | $ | (5 | ) | $ | 10 | $ | (20 | ) | $ | 27 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Balance at beginning of period | $ | 59 | $ | 64 | $ | 56 | $ | 58 | |||||||
Provision charged to Other general expenses | 5 | 4 | 16 | 15 | |||||||||||
Accounts written off, net of recoveries | — | (5 | ) | (10 | ) | (11 | ) | ||||||||
Foreign currency translation | (5 | ) | — | (3 | ) | 1 | |||||||||
Balance at end of period | $ | 59 | $ | 63 | $ | 59 | $ | 63 |
As of | September 30, 2017 | December 31, 2016 | |||||
Taxes receivable | $ | 208 | $ | 100 | |||
Prepaid expenses | 158 | 102 | |||||
Receivables from the Divested Business (1) | 124 | — | |||||
Other | 28 | 45 | |||||
Total | $ | 518 | $ | 247 |
(1) | Refer to Note 3 “Discontinued Operations” for additional information. |
As of | September 30, 2017 | December 31, 2016 | |||||
Investments | $ | 44 | $ | 119 | |||
Taxes receivable | 88 | 82 | |||||
Other | 166 | 159 | |||||
Total | $ | 298 | $ | 360 |
As of | September 30, 2017 | December 31, 2016 | |||||
Deferred revenue | $ | 331 | $ | 199 | |||
Taxes payable (1) | 537 | 77 | |||||
Other | 421 | 380 | |||||
Total | $ | 1,289 | $ | 656 |
(1) | Includes accrued taxes payable related to the gain on sale of the Divested Business. |
As of | September 30, 2017 | December 31, 2016 | |||||
Taxes payable | $ | 333 | $ | 288 | |||
Deferred revenue | 45 | 49 | |||||
Leases | 145 | 136 | |||||
Compensation and benefits | 61 | 56 | |||||
Other | 262 | 190 | |||||
Total | $ | 846 | $ | 719 |
|
For the nine months ended September 30, 2017 | ||||
Cash | $ | 164 | ||
Deferred and contingent consideration | 32 | |||
Aggregate consideration transferred | $ | 196 | ||
Assets acquired: | ||||
Cash and cash equivalents | $ | 7 | ||
Receivables, net | 11 | |||
Goodwill | 121 | |||
Intangible assets, net | 90 | |||
Fixed assets, net | 1 | |||
Other assets | 10 | |||
Total assets acquired | 240 | |||
Liabilities assumed: | ||||
Current liabilities | 18 | |||
Other non-current liabilities | 26 | |||
Total liabilities assumed | 44 | |||
Net assets acquired | $ | 196 |
|
Three months ended September 30, 2017 | Nine months ended September 30, 2017 | Estimated Remaining Costs | Estimated Total Cost (1) | |||||||||||||
Workforce reduction | $ | 52 | $ | 257 | $ | 46 | $ | 303 | ||||||||
Technology rationalization (2) | 12 | 22 | 124 | 146 | ||||||||||||
Lease consolidation (2) | 4 | 8 | 72 | 80 | ||||||||||||
Asset impairments | 2 | 26 | 14 | 40 | ||||||||||||
Other costs associated with restructuring and separation (2) (3) | 32 | 88 | 93 | 181 | ||||||||||||
Total restructuring and related expenses | $ | 102 | $ | 401 | $ | 349 | $ | 750 |
(1) | Actual costs, when incurred, may vary due to changes in the assumptions built into the Restructuring Plan. Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives. |
(2) | Contract termination costs included within Technology rationalization for the three and nine months ended September 30, 2017 were $1 million. Contract termination costs included within Lease consolidations for the three and nine months ended September 30, 2017 were $3 million and $8 million, respectively. Contract termination costs included within Other costs associated with restructuring and separation were $1 million for the three and nine months ended September 30, 2017. Total estimated contract termination costs to be incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs associated with restructuring and separation, respectively, are $10 million, $80 million, and $10 million. |
(3) | Other costs associated with the Restructuring Plan include those to separate the Divested Business, as well as moving costs, and consulting and legal fees. These costs are generally recognized when incurred. |
Restructuring Plan | ||||
Balance as of December 31, 2016 | $ | — | ||
Expensed | 369 | |||
Cash payments | (199 | ) | ||
Foreign currency translation and other | 17 | |||
Balance as of September 30, 2017 | $ | 187 |
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Balance as of December 31, 2016 | $ | 7,410 | |
Goodwill related to current year acquisitions | 121 | ||
Goodwill related to disposals | (1 | ) | |
Goodwill related to prior year acquisitions | (6 | ) | |
Foreign currency translation | 364 | ||
Balance as of September 30, 2017 | $ | 7,888 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization and Impairment | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization and Impairment | Net Carrying Amount | ||||||||||||||||||
Customer related and contract based | $ | 2,104 | $ | 1,380 | $ | 724 | $ | 2,023 | $ | 1,198 | $ | 825 | |||||||||||
Tradenames(1) | 1,041 | 478 | 563 | 1,027 | 7 | 1,020 | |||||||||||||||||
Technology and other(1) | 384 | 330 | 54 | 347 | 302 | 45 | |||||||||||||||||
Total | $ | 3,529 | $ | 2,188 | $ | 1,341 | $ | 3,397 | $ | 1,507 | $ | 1,890 |
(1) | Prior to May 1, 2017, finite lived tradenames were classified within Technology and other. As of December 31, 2016, $29 million of gross carrying amount and $7 million of accumulated amortization related to finite-lived tradenames was reclassified from Technology and other to Tradenames. |
Remainder of 2017 | $ | 117 | |
2018 | 376 | ||
2019 | 357 | ||
2020 | 196 | ||
2021 | 89 | ||
Thereafter | 206 | ||
Total | $ | 1,341 |
|
As of | September 30, 2017 | December 31, 2016 | ||||||
Commercial paper outstanding | $ | — | $ | 329 |
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Weighted average commercial paper outstanding | $ | — | $ | 271 | $ | 227 | $ | 251 | ||||||||
Weighted average interest rate of commercial paper outstanding | — | % | 0.02 | % | 0.18 | % | 0.27 | % |
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Three months ended September 30 | |||||||||||||||||||||||
U.K. | U.S. | Other | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Interest cost | 31 | 37 | 24 | 28 | 7 | 7 | |||||||||||||||||
Expected return on plan assets, net of administration expenses | (50 | ) | (58 | ) | (34 | ) | (39 | ) | (13 | ) | (12 | ) | |||||||||||
Amortization of prior-service cost | — | — | — | 1 | — | — | |||||||||||||||||
Amortization of net actuarial loss | 8 | 7 | 13 | 12 | 3 | 3 | |||||||||||||||||
Net periodic cost (benefit) | $ | (11 | ) | $ | (14 | ) | $ | 3 | $ | 2 | $ | (3 | ) | $ | (2 | ) | |||||||
Loss on pension settlement | — | — | — | — | — | — | |||||||||||||||||
Total net periodic cost (benefit) | $ | (11 | ) | $ | (14 | ) | $ | 3 | $ | 2 | $ | (3 | ) | $ | (2 | ) | |||||||
Nine months ended September 30 | |||||||||||||||||||||||
U.K. | U.S. | Other | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Interest cost | 91 | 123 | 72 | 83 | 19 | 21 | |||||||||||||||||
Expected return on plan assets, net of administration expenses | (147 | ) | (187 | ) | (104 | ) | (117 | ) | (35 | ) | (36 | ) | |||||||||||
Amortization of prior-service cost | — | 1 | 1 | 2 | — | — | |||||||||||||||||
Amortization of net actuarial loss | 23 | 24 | 38 | 37 | 9 | 8 | |||||||||||||||||
Net periodic cost (benefit) | $ | (33 | ) | $ | (39 | ) | $ | 7 | $ | 5 | $ | (7 | ) | $ | (7 | ) | |||||||
Loss on pension settlement | — | 61 | — | — | — | — | |||||||||||||||||
Total net periodic cost (benefit) | $ | (33 | ) | $ | 22 | $ | 7 | $ | 5 | $ | (7 | ) | $ | (7 | ) |
|
Notional Amount | Derivative Assets (1) | Derivative Liabilities (2) | |||||||||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | ||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||
Accounted for as hedges | $ | 711 | $ | 758 | $ | 31 | $ | 14 | $ | 3 | $ | 13 | |||||||||||
Not accounted for as hedges (3) | 245 | 189 | — | 1 | 2 | 1 | |||||||||||||||||
Total | $ | 956 | $ | 947 | $ | 31 | $ | 15 | $ | 5 | $ | 14 |
(1) | Included within Other current assets ($6 million at September 30, 2017 and $6 million at December 31, 2016) or Other non-current assets ($25 million at September 30, 2017 and $9 million at December 31, 2016). |
(2) | Included within Other current liabilities ($3 million at September 30, 2017 and $7 million at December 31, 2016) or Other non-current liabilities ($2 million at September 30, 2017 and $7 million at December 31, 2016). |
(3) | These contracts typically are for 30 day durations and are executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date. |
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets Presented in the Statement of Financial Position (1) | |||||||||||||||||||||
Derivatives accounted for as hedges | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||||||
Foreign exchange contracts | $ | 31 | $ | 14 | $ | — | $ | (1 | ) | $ | 31 | $ | 13 |
(1) | Included within Other current assets ($6 million at September 30, 2017 and $4 million at December 31, 2016) or Other non-current assets ($25 million at September 30, 2017 and $9 million at December 31, 2016). |
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Liabilities Presented in the Statement of Financial Position (1) | ||||||||||||||||||||||
Derivatives accounted for as hedges | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | ||||||||||||||||||
Foreign exchange contracts | $ | 3 | $ | 13 | $ | — | $ | (1 | ) | $ | 3 | $ | 12 |
(1) | Included within Other current liabilities ($2 million at September 30, 2017 and $5 million at December 31, 2016) or Other non-current liabilities ($1 million at September 30, 2017 and $7 million at December 31, 2016). |
Cash Flow Hedge - Foreign Exchange Contracts | Location of Eventual Reclassification from Accumulated Other Comprehensive Loss | Gain (Loss) Currently Recognized in Accumulated Other Comprehensive Loss | ||||||||||||||||||
Three months ended September 30 | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||
2017 | $ | — | $ | 3 | $ | — | $ | 8 | $ | 11 | ||||||||||
2016 | 10 | (4 | ) | — | (7 | ) | (1 | ) |
Cash Flow Hedge - Foreign Exchange Contracts | Location of Eventual Reclassification from Accumulated Other Comprehensive Loss | Gain (Loss) Currently Recognized in Accumulated Other Comprehensive Loss | ||||||||||||||||||
Nine months ended September 30 | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||
2017 | $ | 9 | $ | 5 | $ | — | $ | 4 | $ | 18 | ||||||||||
2016 | 8 | (9 | ) | — | (18 | ) | (19 | ) |
Cash Flow Hedge - Foreign Exchange Contracts | Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | |||||||||||||||||||
Three months ended September 30 | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||
2017 | $ | 1 | $ | (1 | ) | $ | — | $ | (3 | ) | $ | (3 | ) | |||||||
2016 | 1 | (1 | ) | — | (2 | ) | (2 | ) |
Cash Flow Hedge - Foreign Exchange Contracts | Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | |||||||||||||||||||
Nine months ended September 30 | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||
2017 | $ | 14 | $ | (3 | ) | $ | (1 | ) | $ | (7 | ) | $ | 3 | |||||||
2016 | 2 | (2 | ) | (1 | ) | (5 | ) | (6 | ) |
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• | Level 1 — observable inputs such as quoted prices for identical assets in active markets; |
• | Level 2 — inputs other than quoted prices for identical assets in active markets, that are observable either directly or indirectly; and |
• | Level 3 — unobservable inputs in which there is little or no market data which requires the use of valuation techniques and the development of assumptions. |
Fair Value Measurements Using | |||||||||||||||
Balance at September 30, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Money market funds (1) | $ | 3,091 | $ | 3,091 | $ | — | $ | — | |||||||
Other investments: | |||||||||||||||
Government bonds | 1 | — | 1 | — | |||||||||||
Equity investments | 11 | 7 | 4 | — | |||||||||||
Derivatives: (2) | |||||||||||||||
Foreign exchange contracts | 31 | — | 31 | — | |||||||||||
Liabilities: | |||||||||||||||
Derivatives: (2) | |||||||||||||||
Foreign exchange contracts | 5 | — | 5 | — |
(1) | Included within Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. |
(2) | Refer to Note 14 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. |
Fair Value Measurements Using | |||||||||||||||
Balance at December 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Money market funds (1) | $ | 1,371 | $ | 1,371 | $ | — | $ | — | |||||||
Other investments: | |||||||||||||||
Government bonds | 1 | — | 1 | — | |||||||||||
Equity investments | 9 | 6 | 3 | — | |||||||||||
Derivatives: (2) | |||||||||||||||
Foreign exchange contracts | 15 | — | 15 | — | |||||||||||
Liabilities: | |||||||||||||||
Derivatives: (2) | |||||||||||||||
Foreign exchange contracts | 14 | — | 14 | — |
(1) | Included within Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. |
(2) | Refer to Note 14 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Current portion of long-term debt (1) | $ | 305 | $ | 309 | $ | — | $ | — | |||||||
Long-term debt | 5,662 | 6,227 | 5,869 | 6,264 |
(1) | Excludes commercial paper program. |
|
|
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Commercial Risk Solutions | $ | 917 | $ | 884 | $ | 2,943 | $ | 2,835 | |||||||
Reinsurance Solutions | 355 | 329 | 1,070 | 1,032 | |||||||||||
Retirement Solutions | 491 | 466 | 1,266 | 1,266 | |||||||||||
Health Solutions | 293 | 265 | 977 | 838 | |||||||||||
Data & Analytic Services | 289 | 260 | 842 | 794 | |||||||||||
Elimination | (5 | ) | (3 | ) | (9 | ) | (6 | ) | |||||||
Total revenue | $ | 2,340 | $ | 2,201 | $ | 7,089 | $ | 6,759 |
|
Three months ended September 30, 2017 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Total revenue | $ | — | $ | — | $ | 2,340 | $ | — | $ | 2,340 | ||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 25 | 20 | 1,374 | — | 1,419 | |||||||||||||||
Information technology | — | — | 109 | — | 109 | |||||||||||||||
Premises | — | — | 89 | — | 89 | |||||||||||||||
Depreciation of fixed assets | — | — | 40 | — | 40 | |||||||||||||||
Amortization and impairment of intangible assets | — | — | 101 | — | 101 | |||||||||||||||
Other general expenses (income) | 1 | 1 | 315 | — | 317 | |||||||||||||||
Total operating expenses | 26 | 21 | 2,028 | — | 2,075 | |||||||||||||||
Operating income (loss) | (26 | ) | (21 | ) | 312 | — | 265 | |||||||||||||
Interest income | — | 18 | — | (8 | ) | 10 | ||||||||||||||
Interest expense | (53 | ) | (24 | ) | (1 | ) | 8 | (70 | ) | |||||||||||
Intercompany interest income (expense) | 3 | (135 | ) | 132 | — | — | ||||||||||||||
Intercompany other income (expense) | 291 | (271 | ) | (20 | ) | — | — | |||||||||||||
Other income (expense) | (2 | ) | 14 | (17 | ) | — | (5 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | 213 | (419 | ) | 406 | — | 200 | ||||||||||||||
Income tax benefit (expense) | (8 | ) | (81 | ) | 93 | — | 4 | |||||||||||||
Net income (loss) from continuing operations | 221 | (338 | ) | 313 | — | 196 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | (4 | ) | — | (4 | ) | |||||||||||||
Net income (loss) before equity in earnings of subsidiaries | 221 | (338 | ) | 309 | — | 192 | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | (36 | ) | 122 | (216 | ) | 130 | — | |||||||||||||
Net income | 185 | (216 | ) | 93 | 130 | 192 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 7 | — | 7 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | $ | 185 | $ | (216 | ) | $ | 86 | $ | 130 | $ | 185 |
Three months ended September 30, 2016 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Total revenue | $ | — | $ | — | $ | 2,201 | $ | — | $ | 2,201 | ||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 25 | 4 | 1,271 | — | 1,300 | |||||||||||||||
Information technology | — | — | 99 | — | 99 | |||||||||||||||
Premises | — | — | 86 | — | 86 | |||||||||||||||
Depreciation of fixed assets | — | — | 39 | — | 39 | |||||||||||||||
Amortization and impairment of intangible assets | — | — | 42 | — | 42 | |||||||||||||||
Other general expenses (income) | (1 | ) | 3 | 265 | — | 267 | ||||||||||||||
Total operating expenses | 24 | 7 | 1,802 | — | 1,833 | |||||||||||||||
Operating income (loss) | (24 | ) | (7 | ) | 399 | — | 368 | |||||||||||||
Interest income | — | 4 | 5 | (8 | ) | 1 | ||||||||||||||
Interest expense | (51 | ) | (24 | ) | (3 | ) | 8 | (70 | ) | |||||||||||
Intercompany interest income (expense) | 3 | (135 | ) | 132 | — | — | ||||||||||||||
Intercompany other income (expense) | 328 | (277 | ) | (51 | ) | — | — | |||||||||||||
Other income (expense) | (5 | ) | 1 | 11 | 3 | 10 | ||||||||||||||
Income (loss) from continuing operations before income taxes | 251 | (438 | ) | 493 | 3 | 309 | ||||||||||||||
Income tax benefit (expense) | 13 | (93 | ) | 105 | — | 25 | ||||||||||||||
Net income (loss) from continuing operations | 238 | (345 | ) | 388 | 3 | 284 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 42 | — | 42 | |||||||||||||||
Net income (loss) before equity in earnings of subsidiaries | 238 | (345 | ) | 430 | 3 | 326 | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | 78 | 225 | (120 | ) | (183 | ) | — | |||||||||||||
Net income | 316 | (120 | ) | 310 | (180 | ) | 326 | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 7 | — | 7 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | $ | 316 | $ | (120 | ) | $ | 303 | $ | (180 | ) | $ | 319 |
Nine months ended September 30, 2017 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Total revenue | $ | — | $ | — | $ | 7,089 | $ | — | $ | 7,089 | ||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 85 | 31 | 4,221 | — | 4,337 | |||||||||||||||
Information technology | — | — | 295 | — | 295 | |||||||||||||||
Premises | — | — | 259 | — | 259 | |||||||||||||||
Depreciation of fixed assets | — | — | 148 | — | 148 | |||||||||||||||
Amortization and impairment of intangible assets | — | — | 604 | — | 604 | |||||||||||||||
Other general expenses (income) | 10 | (3 | ) | 949 | — | 956 | ||||||||||||||
Total operating expenses | 95 | 28 | 6,476 | — | 6,599 | |||||||||||||||
Operating income (loss) | (95 | ) | (28 | ) | 613 | — | 490 | |||||||||||||
Interest income | — | 35 | — | (15 | ) | 20 | ||||||||||||||
Interest expense | (144 | ) | (71 | ) | (11 | ) | 15 | (211 | ) | |||||||||||
Intercompany interest income (expense) | 10 | (407 | ) | 397 | — | — | ||||||||||||||
Intercompany other income (expense) | 189 | (280 | ) | 91 | — | — | ||||||||||||||
Other income (expense) | (25 | ) | 22 | (35 | ) | 18 | (20 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | (65 | ) | (729 | ) | 1,055 | 18 | 279 | |||||||||||||
Income tax benefit (expense) | (30 | ) | (198 | ) | 89 | — | (139 | ) | ||||||||||||
Net income (loss) from continuing operations | (35 | ) | (531 | ) | 966 | 18 | 418 | |||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 857 | — | 857 | |||||||||||||||
Net income (loss) before equity in earnings of subsidiaries | (35 | ) | (531 | ) | 1,823 | 18 | 1,275 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 1,262 | 1,028 | 497 | (2,787 | ) | — | ||||||||||||||
Net income | 1,227 | 497 | 2,320 | (2,769 | ) | 1,275 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 30 | — | 30 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | $ | 1,227 | $ | 497 | $ | 2,290 | $ | (2,769 | ) | $ | 1,245 |
Nine months ended September 30, 2016 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Total revenue | $ | — | $ | — | $ | 6,759 | $ | — | $ | 6,759 | ||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 76 | 10 | 3,955 | — | 4,041 | |||||||||||||||
Information technology | — | — | 281 | — | 281 | |||||||||||||||
Premises | — | — | 257 | — | 257 | |||||||||||||||
Depreciation of fixed assets | — | — | 118 | — | 118 | |||||||||||||||
Amortization and impairment of intangible assets | — | — | 117 | — | 117 | |||||||||||||||
Other general expenses (income) | 5 | 7 | 758 | — | 770 | |||||||||||||||
Total operating expenses | 81 | 17 | 5,486 | — | 5,584 | |||||||||||||||
Operating income (loss) | (81 | ) | (17 | ) | 1,273 | — | 1,175 | |||||||||||||
Interest income | — | 13 | 14 | (21 | ) | 6 | ||||||||||||||
Interest expense | (145 | ) | (78 | ) | (10 | ) | 21 | (212 | ) | |||||||||||
Intercompany interest income (expense) | 10 | (405 | ) | 395 | — | — | ||||||||||||||
Intercompany other income (expense) | 217 | (292 | ) | 75 | — | — | ||||||||||||||
Other income (expense) | (3 | ) | (8 | ) | 39 | (1 | ) | 27 | ||||||||||||
Income (loss) from continuing operations before income taxes | (2 | ) | (787 | ) | 1,786 | (1 | ) | 996 | ||||||||||||
Income tax benefit (expense) | (33 | ) | (219 | ) | 379 | — | 127 | |||||||||||||
Net income (loss) from continuing operations | 31 | (568 | ) | 1,407 | (1 | ) | 869 | |||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 102 | — | 102 | |||||||||||||||
Net income (loss) before equity in earnings of subsidiaries | 31 | (568 | ) | 1,509 | (1 | ) | 971 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 914 | 836 | 268 | (2,018 | ) | — | ||||||||||||||
Net income | 945 | 268 | 1,777 | (2,019 | ) | 971 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 27 | — | 27 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | $ | 945 | $ | 268 | $ | 1,750 | $ | (2,019 | ) | $ | 944 |
Three months ended September 30, 2017 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income (loss) | $ | 185 | $ | (216 | ) | $ | 93 | $ | 130 | $ | 192 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 7 | — | 7 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | 185 | (216 | ) | 86 | 130 | 185 | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of financial instruments | — | 3 | 8 | — | 11 | |||||||||||||||
Foreign currency translation adjustments | — | — | 243 | — | 243 | |||||||||||||||
Post-retirement benefit obligation | — | 7 | 11 | — | 18 | |||||||||||||||
Total other comprehensive income (loss) | — | 10 | 262 | — | 272 | |||||||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | 265 | 245 | 255 | (765 | ) | — | ||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 7 | — | 7 | |||||||||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | 265 | 255 | 510 | (765 | ) | 265 | ||||||||||||||
Comprehensive income (loss) attributable to Aon shareholders | $ | 450 | $ | 39 | $ | 596 | $ | (635 | ) | $ | 450 |
Three months ended September 30, 2016 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income (loss) | $ | 316 | $ | (120 | ) | $ | 310 | $ | (180 | ) | $ | 326 | ||||||||
Less: Net income attributable to noncontrolling interests | — | — | 7 | — | 7 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | 316 | (120 | ) | 303 | (180 | ) | 319 | |||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of financial instruments | — | 1 | (1 | ) | — | — | ||||||||||||||
Foreign currency translation adjustments | — | 1 | (87 | ) | (3 | ) | (89 | ) | ||||||||||||
Post-retirement benefit obligation | — | 7 | 11 | — | 18 | |||||||||||||||
Total other comprehensive income (loss) | — | 9 | (77 | ) | (3 | ) | (71 | ) | ||||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | (68 | ) | (83 | ) | (74 | ) | 225 | — | ||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | (68 | ) | (74 | ) | (151 | ) | 222 | (71 | ) | |||||||||||
Comprehensive income (loss) attributable to Aon shareholders | $ | 248 | $ | (194 | ) | $ | 152 | $ | 42 | $ | 248 |
Nine months ended September 30, 2017 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income (loss) | $ | 1,227 | $ | 497 | $ | 2,320 | $ | (2,769 | ) | $ | 1,275 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 30 | — | 30 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | 1,227 | 497 | 2,290 | (2,769 | ) | 1,245 | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of financial instruments | — | 3 | 10 | — | 13 | |||||||||||||||
Foreign currency translation adjustments | — | — | 452 | (18 | ) | 434 | ||||||||||||||
Post-retirement benefit obligation | — | 23 | 33 | — | 56 | |||||||||||||||
Total other comprehensive income (loss) | — | 26 | 495 | (18 | ) | 503 | ||||||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | 518 | 480 | 506 | (1,504 | ) | — | ||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 3 | — | 3 | |||||||||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | 518 | 506 | 998 | (1,522 | ) | 500 | ||||||||||||||
Comprehensive income (loss) attributable to Aon shareholders | $ | 1,745 | $ | 1,003 | $ | 3,288 | $ | (4,291 | ) | $ | 1,745 |
Nine months ended September 30, 2016 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income (loss) | $ | 945 | $ | 268 | $ | 1,777 | $ | (2,019 | ) | $ | 971 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 27 | — | 27 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | 945 | 268 | 1,750 | (2,019 | ) | 944 | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of financial instruments | — | 1 | (12 | ) | — | (11 | ) | |||||||||||||
Foreign currency translation adjustments | (2 | ) | 22 | (248 | ) | 1 | (227 | ) | ||||||||||||
Post-retirement benefit obligation | — | 23 | (155 | ) | — | (132 | ) | |||||||||||||
Total other comprehensive income (loss) | (2 | ) | 46 | (415 | ) | 1 | (370 | ) | ||||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | (369 | ) | (425 | ) | (379 | ) | 1,173 | — | ||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | (371 | ) | (379 | ) | (794 | ) | 1,174 | (370 | ) | |||||||||||
Comprehensive income (loss) attributable to Aon shareholders | $ | 574 | $ | (111 | ) | $ | 956 | $ | (845 | ) | $ | 574 |
As of September 30, 2017 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3,110 | $ | 802 | $ | (3,163 | ) | $ | 749 | |||||||||
Short-term investments | — | 1,467 | 173 | — | 1,640 | |||||||||||||||
Receivables, net | — | 2 | 2,066 | — | 2,068 | |||||||||||||||
Fiduciary assets | — | — | 9,292 | — | 9,292 | |||||||||||||||
Intercompany receivables | 110 | 4,860 | 12,436 | (17,406 | ) | — | ||||||||||||||
Other current assets | — | 37 | 481 | — | 518 | |||||||||||||||
Current assets of discontinued operations | — | — | — | — | — | |||||||||||||||
Total Current Assets | 110 | 9,476 | 25,250 | (20,569 | ) | 14,267 | ||||||||||||||
Goodwill | — | — | 7,888 | — | 7,888 | |||||||||||||||
Intangible assets, net | — | — | 1,341 | — | 1,341 | |||||||||||||||
Fixed assets, net | — | — | 545 | — | 545 | |||||||||||||||
Deferred tax assets | 135 | 664 | 173 | (407 | ) | 565 | ||||||||||||||
Intercompany receivables | 391 | 261 | 8,728 | (9,380 | ) | — | ||||||||||||||
Prepaid pension | — | 5 | 1,015 | — | 1,020 | |||||||||||||||
Other non-current assets | 1 | 49 | 248 | — | 298 | |||||||||||||||
Investment in subsidiary | 11,900 | 17,748 | 509 | (30,157 | ) | — | ||||||||||||||
Non-current assets of discontinued operations | — | — | — | — | — | |||||||||||||||
TOTAL ASSETS | $ | 12,537 | $ | 28,203 | $ | 45,697 | $ | (60,513 | ) | $ | 25,924 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 2,929 | $ | 37 | $ | 1,785 | $ | (3,163 | ) | $ | 1,588 | |||||||||
Short-term debt and current portion of long-term debt | — | — | 305 | — | 305 | |||||||||||||||
Fiduciary liabilities | — | — | 9,292 | — | 9,292 | |||||||||||||||
Intercompany payables | 147 | 15,951 | 1,308 | (17,406 | ) | — | ||||||||||||||
Other current liabilities | 24 | 54 | 1,211 | — | 1,289 | |||||||||||||||
Current liabilities of discontinued operations | — | — | — | — | — | |||||||||||||||
Total Current Liabilities | 3,100 | 16,042 | 13,901 | (20,569 | ) | 12,474 | ||||||||||||||
Long-term debt | 4,247 | 1,414 | 1 | — | 5,662 | |||||||||||||||
Deferred tax liabilities | — | — | 490 | (407 | ) | 83 | ||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,234 | 378 | — | 1,612 | |||||||||||||||
Intercompany payables | — | 8,894 | 486 | (9,380 | ) | — | ||||||||||||||
Other non-current liabilities | 15 | 110 | 721 | — | 846 | |||||||||||||||
Non-current liabilities of discontinued operations | — | — | — | — | — | |||||||||||||||
TOTAL LIABILITIES | 7,362 | 27,694 | 15,977 | (30,356 | ) | 20,677 | ||||||||||||||
TOTAL AON SHAREHOLDERS’ EQUITY | 5,175 | 509 | 29,648 | (30,157 | ) | 5,175 | ||||||||||||||
Noncontrolling interests | — | — | 72 | — | 72 | |||||||||||||||
TOTAL EQUITY | 5,175 | 509 | 29,720 | (30,157 | ) | 5,247 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 12,537 | $ | 28,203 | $ | 45,697 | $ | (60,513 | ) | $ | 25,924 |
As of December 31, 2016 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 1,633 | $ | 655 | $ | (1,862 | ) | $ | 426 | |||||||||
Short-term investments | — | 140 | 150 | — | 290 | |||||||||||||||
Receivables, net | — | 3 | 2,103 | — | 2,106 | |||||||||||||||
Fiduciary assets | — | — | 8,959 | — | 8,959 | |||||||||||||||
Intercompany receivables | 105 | 1,880 | 9,825 | (11,810 | ) | — | ||||||||||||||
Other current assets | — | 25 | 222 | — | 247 | |||||||||||||||
Current assets of discontinued operations | — | — | 1,118 | — | 1,118 | |||||||||||||||
Total Current Assets | 105 | 3,681 | 23,032 | (13,672 | ) | 13,146 | ||||||||||||||
Goodwill | — | — | 7,410 | — | 7,410 | |||||||||||||||
Intangible assets, net | — | — | 1,890 | — | 1,890 | |||||||||||||||
Fixed assets, net | — | — | 550 | — | 550 | |||||||||||||||
Deferred tax assets | 134 | 726 | 171 | (706 | ) | 325 | ||||||||||||||
Intercompany receivables | 366 | 261 | 8,711 | (9,338 | ) | — | ||||||||||||||
Prepaid pension | — | 5 | 853 | — | 858 | |||||||||||||||
Other non-current assets | 2 | 119 | 239 | — | 360 | |||||||||||||||
Investment in subsidiary | 10,107 | 17,131 | (356 | ) | (26,882 | ) | — | |||||||||||||
Non-current assets of discontinued operations | — | — | 2,076 | — | 2,076 | |||||||||||||||
TOTAL ASSETS | $ | 10,714 | $ | 21,923 | $ | 44,576 | $ | (50,598 | ) | $ | 26,615 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 585 | $ | 44 | $ | 2,837 | $ | (1,862 | ) | $ | 1,604 | |||||||||
Short-term debt and current portion of long-term debt | 279 | 50 | 7 | — | 336 | |||||||||||||||
Fiduciary liabilities | — | — | 8,959 | — | 8,959 | |||||||||||||||
Intercompany payables | 142 | 10,399 | 1,269 | (11,810 | ) | — | ||||||||||||||
Other current liabilities | — | 63 | 593 | — | 656 | |||||||||||||||
Current liabilities of discontinued operations | — | — | 940 | — | 940 | |||||||||||||||
Total Current Liabilities | 1,006 | 10,556 | 14,605 | (13,672 | ) | 12,495 | ||||||||||||||
Long-term debt | 4,177 | 1,413 | 279 | — | 5,869 | |||||||||||||||
Deferred tax liabilities | — | — | 759 | (658 | ) | 101 | ||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,356 | 404 | — | 1,760 | |||||||||||||||
Intercompany payables | — | 8,877 | 461 | (9,338 | ) | — | ||||||||||||||
Other non-current liabilities | 8 | 77 | 634 | — | 719 | |||||||||||||||
Non-current liabilities of discontinued operations | — | — | 139 | — | 139 | |||||||||||||||
TOTAL LIABILITIES | 5,191 | 22,279 | 17,281 | (23,668 | ) | 21,083 | ||||||||||||||
TOTAL AON SHAREHOLDERS’ EQUITY | 5,523 | (356 | ) | 27,238 | (26,930 | ) | 5,475 | |||||||||||||
Noncontrolling interests | — | — | 57 | — | 57 | |||||||||||||||
TOTAL EQUITY | 5,523 | (356 | ) | 27,295 | (26,930 | ) | 5,532 | |||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 10,714 | $ | 21,923 | $ | 44,576 | $ | (50,598 | ) | $ | 26,615 |
Nine months ended September 30, 2017 | ||||||||||||||||||||
Aon | Aon | Other Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
Cash provided by (used for) operating activities - continuing operations | $ | (135 | ) | $ | 999 | $ | 987 | $ | (1,562 | ) | $ | 289 | ||||||||
Cash provided by operating activities - discontinued operations | — | — | 64 | — | 64 | |||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | (135 | ) | 999 | 1,051 | (1,562 | ) | 353 | |||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Proceeds from investments | — | 576 | 11 | (544 | ) | 43 | ||||||||||||||
Payments for investments | (16 | ) | (25 | ) | (571 | ) | 557 | (55 | ) | |||||||||||
Net purchases of short-term investments - non-fiduciary | — | (1,328 | ) | (16 | ) | — | (1,344 | ) | ||||||||||||
Acquisition of businesses, net of cash acquired | — | 1 | (173 | ) | — | (172 | ) | |||||||||||||
Sale of businesses, net of cash sold | — | — | 4,194 | — | 4,194 | |||||||||||||||
Capital expenditures | — | — | (125 | ) | — | (125 | ) | |||||||||||||
Cash provided by (used for) investing activities - continuing operations | (16 | ) | (776 | ) | 3,320 | 13 | 2,541 | |||||||||||||
Cash used for investing activities - discontinued operations | — | — | (19 | ) | — | (19 | ) | |||||||||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | (16 | ) | (776 | ) | 3,301 | 13 | 2,522 | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Share repurchase | (1,888 | ) | — | — | — | (1,888 | ) | |||||||||||||
Advances from (to) affiliates | 2,722 | 1,304 | (4,274 | ) | 248 | — | ||||||||||||||
Issuance of shares for employee benefit plans | (118 | ) | — | — | — | (118 | ) | |||||||||||||
Issuance of debt | 544 | 1,100 | 7 | — | 1,651 | |||||||||||||||
Repayment of debt | (835 | ) | (1,150 | ) | (13 | ) | — | (1,998 | ) | |||||||||||
Cash dividends to shareholders | (274 | ) | — | — | — | (274 | ) | |||||||||||||
Noncontrolling interests and other financing activities | — | — | (21 | ) | — | (21 | ) | |||||||||||||
Cash provided by (used for) financing activities - continuing operations | 151 | 1,254 | (4,301 | ) | 248 | (2,648 | ) | |||||||||||||
Cash used for financing activities - discontinued operations | — | — | — | — | — | |||||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 151 | 1,254 | (4,301 | ) | 248 | (2,648 | ) | |||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | 91 | — | 91 | |||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | 1,477 | 142 | (1,301 | ) | 318 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR (1) | — | 1,633 | 660 | (1,862 | ) | 431 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD (2) | $ | — | $ | 3,110 | $ | 802 | $ | (3,163 | ) | $ | 749 |
(1) | Includes $5 million of discontinued operations at December 31, 2016. |
(2) | There was no cash held by discontinued operations at September 30, 2017. |
Nine months ended September 30, 2016 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
Cash provided by (used for) operating activities - continuing operations | $ | 219 | $ | (664 | ) | $ | 1,597 | $ | — | $ | 1,152 | |||||||||
Cash provided by operating activities - discontinued operations | — | — | 323 | — | 323 | |||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 219 | (664 | ) | 1,920 | — | 1,475 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Proceeds from investments | — | 19 | 12 | — | 31 | |||||||||||||||
Payments for investments | — | (25 | ) | (22 | ) | — | (47 | ) | ||||||||||||
Net sales of short-term investments - non-fiduciary | — | (99 | ) | (9 | ) | — | (108 | ) | ||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (198 | ) | — | (198 | ) | |||||||||||||
Sale of businesses, net of cash sold | — | — | 104 | — | 104 | |||||||||||||||
Capital expenditures | — | — | (107 | ) | — | (107 | ) | |||||||||||||
Cash provided by (used for) investing activities - continuing operations | — | (105 | ) | (220 | ) | — | (325 | ) | ||||||||||||
Cash used for investing activities - discontinued operations | — | — | (46 | ) | — | (46 | ) | |||||||||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | — | (105 | ) | (266 | ) | — | (371 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Share repurchase | (1,037 | ) | — | — | — | (1,037 | ) | |||||||||||||
Advances from (to) affiliates | 166 | 356 | (670 | ) | 148 | — | ||||||||||||||
Issuance of shares for employee benefit plans | (70 | ) | — | — | — | (70 | ) | |||||||||||||
Issuance of debt | 1,588 | 1,141 | — | — | 2,729 | |||||||||||||||
Repayment of debt | (608 | ) | (1,692 | ) | (8 | ) | — | (2,308 | ) | |||||||||||
Cash dividends to shareholders | (258 | ) | — | — | — | (258 | ) | |||||||||||||
Noncontrolling interests and other financing activities | — | — | (71 | ) | — | (71 | ) | |||||||||||||
Cash provided by (used for) financing activities - continuing operations | (219 | ) | (195 | ) | (749 | ) | 148 | (1,015 | ) | |||||||||||
Cash used for financing activities - discontinued operations | — | — | — | — | — | |||||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | (219 | ) | (195 | ) | (749 | ) | 148 | (1,015 | ) | |||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | 10 | — | 10 | |||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | (964 | ) | 915 | 148 | 99 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR(1) | — | 2,083 | 1,242 | (2,941 | ) | 384 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD(2) | $ | — | $ | 1,119 | $ | 2,157 | $ | (2,793 | ) | $ | 483 |
(1) | Includes $2 million of discontinued operations at December 31, 2015. |
(2) | Includes $3 million of discontinued operations at September 30, 2016. |
|
• | An increase to Deferred tax assets on the Condensed Consolidated Statement of Financial Position of approximately $49 million through a cumulative-effect adjustment to Retained earnings for excess tax benefits not previously recognized, and |
• | The recognition of $5 million, or $0.02 per share, income tax benefit from continuing operations related to excess tax benefits in the Condensed Consolidated Statement of Income for the three months ended September 30, 2017, and $53 million, or $0.20 per share, for the nine months ended September 30, 2017. |
|
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenue | ||||||||||||||||
Total revenue | $ | — | $ | 559 | $ | 698 | $ | 1,606 | ||||||||
Expenses | ||||||||||||||||
Total operating expenses | 14 | 491 | 640 | 1,443 | ||||||||||||
Operating income from discontinued operations | (14 | ) | 68 | 58 | 163 | |||||||||||
Other income | (1 | ) | (1 | ) | 10 | — | ||||||||||
Income from discontinued operations before income taxes | (15 | ) | 67 | 68 | 163 | |||||||||||
Income taxes | (6 | ) | 25 | 14 | 61 | |||||||||||
Income from discontinued operations excluding gain, net of tax | (9 | ) | 42 | 54 | 102 | |||||||||||
Gain on sale of discontinued operations, net of tax | 5 | — | 803 | — | ||||||||||||
Income from discontinued operations, net of tax | $ | (4 | ) | $ | 42 | $ | 857 | $ | 102 |
September 30, 2017 (1) | December 31, 2016 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | — | $ | 5 | ||||
Receivables, net | — | 483 | ||||||
Fiduciary assets | — | 526 | ||||||
Goodwill | — | 1,337 | ||||||
Intangible assets, net | — | 333 | ||||||
Fixed assets, net | — | 215 | ||||||
Other assets | — | 295 | ||||||
TOTAL ASSETS | $ | — | $ | 3,194 | ||||
LIABILITIES | ||||||||
Accounts payable and accrued liabilities | $ | — | $ | 197 | ||||
Fiduciary liabilities | — | 526 | ||||||
Other liabilities | — | 356 | ||||||
TOTAL LIABILITIES | $ | — | $ | 1,079 |
(1) | All assets and liabilities associated with the Divested Business were sold on May 1, 2017. |
|
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Foreign currency remeasurement gain (loss) | $ | (20 | ) | $ | 3 | $ | (32 | ) | $ | (14 | ) | ||||
Gain (loss) on disposal of business | — | — | (2 | ) | 41 | ||||||||||
Equity earnings | 2 | 4 | 11 | 7 | |||||||||||
Gain (loss) on financial instruments | 16 | 3 | 6 | (7 | ) | ||||||||||
Other | (3 | ) | — | (3 | ) | — | |||||||||
Total | $ | (5 | ) | $ | 10 | $ | (20 | ) | $ | 27 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Balance at beginning of period | $ | 59 | $ | 64 | $ | 56 | $ | 58 | |||||||
Provision charged to Other general expenses | 5 | 4 | 16 | 15 | |||||||||||
Accounts written off, net of recoveries | — | (5 | ) | (10 | ) | (11 | ) | ||||||||
Foreign currency translation | (5 | ) | — | (3 | ) | 1 | |||||||||
Balance at end of period | $ | 59 | $ | 63 | $ | 59 | $ | 63 |
As of | September 30, 2017 | December 31, 2016 | |||||
Taxes receivable | $ | 208 | $ | 100 | |||
Prepaid expenses | 158 | 102 | |||||
Receivables from the Divested Business (1) | 124 | — | |||||
Other | 28 | 45 | |||||
Total | $ | 518 | $ | 247 |
(1) | Refer to Note 3 “Discontinued Operations” for additional information. |
As of | September 30, 2017 | December 31, 2016 | |||||
Investments | $ | 44 | $ | 119 | |||
Taxes receivable | 88 | 82 | |||||
Other | 166 | 159 | |||||
Total | $ | 298 | $ | 360 |
As of | September 30, 2017 | December 31, 2016 | |||||
Deferred revenue | $ | 331 | $ | 199 | |||
Taxes payable (1) | 537 | 77 | |||||
Other | 421 | 380 | |||||
Total | $ | 1,289 | $ | 656 |
(1) | Includes accrued taxes payable related to the gain on sale of the Divested Business. |
As of | September 30, 2017 | December 31, 2016 | |||||
Taxes payable | $ | 333 | $ | 288 | |||
Deferred revenue | 45 | 49 | |||||
Leases | 145 | 136 | |||||
Compensation and benefits | 61 | 56 | |||||
Other | 262 | 190 | |||||
Total | $ | 846 | $ | 719 |
|
For the nine months ended September 30, 2017 | ||||
Cash | $ | 164 | ||
Deferred and contingent consideration | 32 | |||
Aggregate consideration transferred | $ | 196 | ||
Assets acquired: | ||||
Cash and cash equivalents | $ | 7 | ||
Receivables, net | 11 | |||
Goodwill | 121 | |||
Intangible assets, net | 90 | |||
Fixed assets, net | 1 | |||
Other assets | 10 | |||
Total assets acquired | 240 | |||
Liabilities assumed: | ||||
Current liabilities | 18 | |||
Other non-current liabilities | 26 | |||
Total liabilities assumed | 44 | |||
Net assets acquired | $ | 196 |
|
Three months ended September 30, 2017 | Nine months ended September 30, 2017 | Estimated Remaining Costs | Estimated Total Cost (1) | |||||||||||||
Workforce reduction | $ | 52 | $ | 257 | $ | 46 | $ | 303 | ||||||||
Technology rationalization (2) | 12 | 22 | 124 | 146 | ||||||||||||
Lease consolidation (2) | 4 | 8 | 72 | 80 | ||||||||||||
Asset impairments | 2 | 26 | 14 | 40 | ||||||||||||
Other costs associated with restructuring and separation (2) (3) | 32 | 88 | 93 | 181 | ||||||||||||
Total restructuring and related expenses | $ | 102 | $ | 401 | $ | 349 | $ | 750 |
(1) | Actual costs, when incurred, may vary due to changes in the assumptions built into the Restructuring Plan. Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives. |
(2) | Contract termination costs included within Technology rationalization for the three and nine months ended September 30, 2017 were $1 million. Contract termination costs included within Lease consolidations for the three and nine months ended September 30, 2017 were $3 million and $8 million, respectively. Contract termination costs included within Other costs associated with restructuring and separation were $1 million for the three and nine months ended September 30, 2017. Total estimated contract termination costs to be incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs associated with restructuring and separation, respectively, are $10 million, $80 million, and $10 million. |
(3) | Other costs associated with the Restructuring Plan include those to separate the Divested Business, as well as moving costs, and consulting and legal fees. These costs are generally recognized when incurred. |
Restructuring Plan | ||||
Balance as of December 31, 2016 | $ | — | ||
Expensed | 369 | |||
Cash payments | (199 | ) | ||
Foreign currency translation and other | 17 | |||
Balance as of September 30, 2017 | $ | 187 |
|
Balance as of December 31, 2016 | $ | 7,410 | |
Goodwill related to current year acquisitions | 121 | ||
Goodwill related to disposals | (1 | ) | |
Goodwill related to prior year acquisitions | (6 | ) | |
Foreign currency translation | 364 | ||
Balance as of September 30, 2017 | $ | 7,888 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization and Impairment | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization and Impairment | Net Carrying Amount | ||||||||||||||||||
Customer related and contract based | $ | 2,104 | $ | 1,380 | $ | 724 | $ | 2,023 | $ | 1,198 | $ | 825 | |||||||||||
Tradenames(1) | 1,041 | 478 | 563 | 1,027 | 7 | 1,020 | |||||||||||||||||
Technology and other(1) | 384 | 330 | 54 | 347 | 302 | 45 | |||||||||||||||||
Total | $ | 3,529 | $ | 2,188 | $ | 1,341 | $ | 3,397 | $ | 1,507 | $ | 1,890 |
(1) | Prior to May 1, 2017, finite lived tradenames were classified within Technology and other. As of December 31, 2016, $29 million of gross carrying amount and $7 million of accumulated amortization related to finite-lived tradenames was reclassified from Technology and other to Tradenames. |
Remainder of 2017 | $ | 117 | |
2018 | 376 | ||
2019 | 357 | ||
2020 | 196 | ||
2021 | 89 | ||
Thereafter | 206 | ||
Total | $ | 1,341 |
|
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Weighted average commercial paper outstanding | $ | — | $ | 271 | $ | 227 | $ | 251 | ||||||||
Weighted average interest rate of commercial paper outstanding | — | % | 0.02 | % | 0.18 | % | 0.27 | % |
As of | September 30, 2017 | December 31, 2016 | ||||||
Commercial paper outstanding | $ | — | $ | 329 |
|
Three months ended September 30 | |||||||||||||||||||||||
U.K. | U.S. | Other | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Interest cost | 31 | 37 | 24 | 28 | 7 | 7 | |||||||||||||||||
Expected return on plan assets, net of administration expenses | (50 | ) | (58 | ) | (34 | ) | (39 | ) | (13 | ) | (12 | ) | |||||||||||
Amortization of prior-service cost | — | — | — | 1 | — | — | |||||||||||||||||
Amortization of net actuarial loss | 8 | 7 | 13 | 12 | 3 | 3 | |||||||||||||||||
Net periodic cost (benefit) | $ | (11 | ) | $ | (14 | ) | $ | 3 | $ | 2 | $ | (3 | ) | $ | (2 | ) | |||||||
Loss on pension settlement | — | — | — | — | — | — | |||||||||||||||||
Total net periodic cost (benefit) | $ | (11 | ) | $ | (14 | ) | $ | 3 | $ | 2 | $ | (3 | ) | $ | (2 | ) | |||||||
Nine months ended September 30 | |||||||||||||||||||||||
U.K. | U.S. | Other | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Interest cost | 91 | 123 | 72 | 83 | 19 | 21 | |||||||||||||||||
Expected return on plan assets, net of administration expenses | (147 | ) | (187 | ) | (104 | ) | (117 | ) | (35 | ) | (36 | ) | |||||||||||
Amortization of prior-service cost | — | 1 | 1 | 2 | — | — | |||||||||||||||||
Amortization of net actuarial loss | 23 | 24 | 38 | 37 | 9 | 8 | |||||||||||||||||
Net periodic cost (benefit) | $ | (33 | ) | $ | (39 | ) | $ | 7 | $ | 5 | $ | (7 | ) | $ | (7 | ) | |||||||
Loss on pension settlement | — | 61 | — | — | — | — | |||||||||||||||||
Total net periodic cost (benefit) | $ | (33 | ) | $ | 22 | $ | 7 | $ | 5 | $ | (7 | ) | $ | (7 | ) |
|
Notional Amount | Derivative Assets (1) | Derivative Liabilities (2) | |||||||||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | ||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||
Accounted for as hedges | $ | 711 | $ | 758 | $ | 31 | $ | 14 | $ | 3 | $ | 13 | |||||||||||
Not accounted for as hedges (3) | 245 | 189 | — | 1 | 2 | 1 | |||||||||||||||||
Total | $ | 956 | $ | 947 | $ | 31 | $ | 15 | $ | 5 | $ | 14 |
(1) | Included within Other current assets ($6 million at September 30, 2017 and $6 million at December 31, 2016) or Other non-current assets ($25 million at September 30, 2017 and $9 million at December 31, 2016). |
(2) | Included within Other current liabilities ($3 million at September 30, 2017 and $7 million at December 31, 2016) or Other non-current liabilities ($2 million at September 30, 2017 and $7 million at December 31, 2016). |
(3) | These contracts typically are for 30 day durations and are executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date. |
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets Presented in the Statement of Financial Position (1) | |||||||||||||||||||||
Derivatives accounted for as hedges | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||||||
Foreign exchange contracts | $ | 31 | $ | 14 | $ | — | $ | (1 | ) | $ | 31 | $ | 13 |
(1) | Included within Other current assets ($6 million at September 30, 2017 and $4 million at December 31, 2016) or Other non-current assets ($25 million at September 30, 2017 and $9 million at December 31, 2016). |
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Liabilities Presented in the Statement of Financial Position (1) | ||||||||||||||||||||||
Derivatives accounted for as hedges | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | ||||||||||||||||||
Foreign exchange contracts | $ | 3 | $ | 13 | $ | — | $ | (1 | ) | $ | 3 | $ | 12 |
(1) | Included within Other current liabilities ($2 million at September 30, 2017 and $5 million at December 31, 2016) or Other non-current liabilities ($1 million at September 30, 2017 and $7 million at December 31, 2016). |
Cash Flow Hedge - Foreign Exchange Contracts | Location of Eventual Reclassification from Accumulated Other Comprehensive Loss | Gain (Loss) Currently Recognized in Accumulated Other Comprehensive Loss | ||||||||||||||||||
Three months ended September 30 | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||
2017 | $ | — | $ | 3 | $ | — | $ | 8 | $ | 11 | ||||||||||
2016 | 10 | (4 | ) | — | (7 | ) | (1 | ) |
Cash Flow Hedge - Foreign Exchange Contracts | Location of Eventual Reclassification from Accumulated Other Comprehensive Loss | Gain (Loss) Currently Recognized in Accumulated Other Comprehensive Loss | ||||||||||||||||||
Nine months ended September 30 | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||
2017 | $ | 9 | $ | 5 | $ | — | $ | 4 | $ | 18 | ||||||||||
2016 | 8 | (9 | ) | — | (18 | ) | (19 | ) |
Cash Flow Hedge - Foreign Exchange Contracts | Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | |||||||||||||||||||
Three months ended September 30 | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||
2017 | $ | 1 | $ | (1 | ) | $ | — | $ | (3 | ) | $ | (3 | ) | |||||||
2016 | 1 | (1 | ) | — | (2 | ) | (2 | ) |
Cash Flow Hedge - Foreign Exchange Contracts | Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | |||||||||||||||||||
Nine months ended September 30 | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||
2017 | $ | 14 | $ | (3 | ) | $ | (1 | ) | $ | (7 | ) | $ | 3 | |||||||
2016 | 2 | (2 | ) | (1 | ) | (5 | ) | (6 | ) |
|
Fair Value Measurements Using | |||||||||||||||
Balance at September 30, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Money market funds (1) | $ | 3,091 | $ | 3,091 | $ | — | $ | — | |||||||
Other investments: | |||||||||||||||
Government bonds | 1 | — | 1 | — | |||||||||||
Equity investments | 11 | 7 | 4 | — | |||||||||||
Derivatives: (2) | |||||||||||||||
Foreign exchange contracts | 31 | — | 31 | — | |||||||||||
Liabilities: | |||||||||||||||
Derivatives: (2) | |||||||||||||||
Foreign exchange contracts | 5 | — | 5 | — |
(1) | Included within Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. |
(2) | Refer to Note 14 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. |
Fair Value Measurements Using | |||||||||||||||
Balance at December 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Money market funds (1) | $ | 1,371 | $ | 1,371 | $ | — | $ | — | |||||||
Other investments: | |||||||||||||||
Government bonds | 1 | — | 1 | — | |||||||||||
Equity investments | 9 | 6 | 3 | — | |||||||||||
Derivatives: (2) | |||||||||||||||
Foreign exchange contracts | 15 | — | 15 | — | |||||||||||
Liabilities: | |||||||||||||||
Derivatives: (2) | |||||||||||||||
Foreign exchange contracts | 14 | — | 14 | — |
(1) | Included within Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. |
(2) | Refer to Note 14 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Current portion of long-term debt (1) | $ | 305 | $ | 309 | $ | — | $ | — | |||||||
Long-term debt | 5,662 | 6,227 | 5,869 | 6,264 |
(1) | Excludes commercial paper program |
|
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Commercial Risk Solutions | $ | 917 | $ | 884 | $ | 2,943 | $ | 2,835 | |||||||
Reinsurance Solutions | 355 | 329 | 1,070 | 1,032 | |||||||||||
Retirement Solutions | 491 | 466 | 1,266 | 1,266 | |||||||||||
Health Solutions | 293 | 265 | 977 | 838 | |||||||||||
Data & Analytic Services | 289 | 260 | 842 | 794 | |||||||||||
Elimination | (5 | ) | (3 | ) | (9 | ) | (6 | ) | |||||||
Total revenue | $ | 2,340 | $ | 2,201 | $ | 7,089 | $ | 6,759 |
|
Three months ended September 30, 2017 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Total revenue | $ | — | $ | — | $ | 2,340 | $ | — | $ | 2,340 | ||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 25 | 20 | 1,374 | — | 1,419 | |||||||||||||||
Information technology | — | — | 109 | — | 109 | |||||||||||||||
Premises | — | — | 89 | — | 89 | |||||||||||||||
Depreciation of fixed assets | — | — | 40 | — | 40 | |||||||||||||||
Amortization and impairment of intangible assets | — | — | 101 | — | 101 | |||||||||||||||
Other general expenses (income) | 1 | 1 | 315 | — | 317 | |||||||||||||||
Total operating expenses | 26 | 21 | 2,028 | — | 2,075 | |||||||||||||||
Operating income (loss) | (26 | ) | (21 | ) | 312 | — | 265 | |||||||||||||
Interest income | — | 18 | — | (8 | ) | 10 | ||||||||||||||
Interest expense | (53 | ) | (24 | ) | (1 | ) | 8 | (70 | ) | |||||||||||
Intercompany interest income (expense) | 3 | (135 | ) | 132 | — | — | ||||||||||||||
Intercompany other income (expense) | 291 | (271 | ) | (20 | ) | — | — | |||||||||||||
Other income (expense) | (2 | ) | 14 | (17 | ) | — | (5 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | 213 | (419 | ) | 406 | — | 200 | ||||||||||||||
Income tax benefit (expense) | (8 | ) | (81 | ) | 93 | — | 4 | |||||||||||||
Net income (loss) from continuing operations | 221 | (338 | ) | 313 | — | 196 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | (4 | ) | — | (4 | ) | |||||||||||||
Net income (loss) before equity in earnings of subsidiaries | 221 | (338 | ) | 309 | — | 192 | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | (36 | ) | 122 | (216 | ) | 130 | — | |||||||||||||
Net income | 185 | (216 | ) | 93 | 130 | 192 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 7 | — | 7 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | $ | 185 | $ | (216 | ) | $ | 86 | $ | 130 | $ | 185 |
Three months ended September 30, 2016 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Total revenue | $ | — | $ | — | $ | 2,201 | $ | — | $ | 2,201 | ||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 25 | 4 | 1,271 | — | 1,300 | |||||||||||||||
Information technology | — | — | 99 | — | 99 | |||||||||||||||
Premises | — | — | 86 | — | 86 | |||||||||||||||
Depreciation of fixed assets | — | — | 39 | — | 39 | |||||||||||||||
Amortization and impairment of intangible assets | — | — | 42 | — | 42 | |||||||||||||||
Other general expenses (income) | (1 | ) | 3 | 265 | — | 267 | ||||||||||||||
Total operating expenses | 24 | 7 | 1,802 | — | 1,833 | |||||||||||||||
Operating income (loss) | (24 | ) | (7 | ) | 399 | — | 368 | |||||||||||||
Interest income | — | 4 | 5 | (8 | ) | 1 | ||||||||||||||
Interest expense | (51 | ) | (24 | ) | (3 | ) | 8 | (70 | ) | |||||||||||
Intercompany interest income (expense) | 3 | (135 | ) | 132 | — | — | ||||||||||||||
Intercompany other income (expense) | 328 | (277 | ) | (51 | ) | — | — | |||||||||||||
Other income (expense) | (5 | ) | 1 | 11 | 3 | 10 | ||||||||||||||
Income (loss) from continuing operations before income taxes | 251 | (438 | ) | 493 | 3 | 309 | ||||||||||||||
Income tax benefit (expense) | 13 | (93 | ) | 105 | — | 25 | ||||||||||||||
Net income (loss) from continuing operations | 238 | (345 | ) | 388 | 3 | 284 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 42 | — | 42 | |||||||||||||||
Net income (loss) before equity in earnings of subsidiaries | 238 | (345 | ) | 430 | 3 | 326 | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | 78 | 225 | (120 | ) | (183 | ) | — | |||||||||||||
Net income | 316 | (120 | ) | 310 | (180 | ) | 326 | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 7 | — | 7 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | $ | 316 | $ | (120 | ) | $ | 303 | $ | (180 | ) | $ | 319 |
Nine months ended September 30, 2017 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Total revenue | $ | — | $ | — | $ | 7,089 | $ | — | $ | 7,089 | ||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 85 | 31 | 4,221 | — | 4,337 | |||||||||||||||
Information technology | — | — | 295 | — | 295 | |||||||||||||||
Premises | — | — | 259 | — | 259 | |||||||||||||||
Depreciation of fixed assets | — | — | 148 | — | 148 | |||||||||||||||
Amortization and impairment of intangible assets | — | — | 604 | — | 604 | |||||||||||||||
Other general expenses (income) | 10 | (3 | ) | 949 | — | 956 | ||||||||||||||
Total operating expenses | 95 | 28 | 6,476 | — | 6,599 | |||||||||||||||
Operating income (loss) | (95 | ) | (28 | ) | 613 | — | 490 | |||||||||||||
Interest income | — | 35 | — | (15 | ) | 20 | ||||||||||||||
Interest expense | (144 | ) | (71 | ) | (11 | ) | 15 | (211 | ) | |||||||||||
Intercompany interest income (expense) | 10 | (407 | ) | 397 | — | — | ||||||||||||||
Intercompany other income (expense) | 189 | (280 | ) | 91 | — | — | ||||||||||||||
Other income (expense) | (25 | ) | 22 | (35 | ) | 18 | (20 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | (65 | ) | (729 | ) | 1,055 | 18 | 279 | |||||||||||||
Income tax benefit (expense) | (30 | ) | (198 | ) | 89 | — | (139 | ) | ||||||||||||
Net income (loss) from continuing operations | (35 | ) | (531 | ) | 966 | 18 | 418 | |||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 857 | — | 857 | |||||||||||||||
Net income (loss) before equity in earnings of subsidiaries | (35 | ) | (531 | ) | 1,823 | 18 | 1,275 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 1,262 | 1,028 | 497 | (2,787 | ) | — | ||||||||||||||
Net income | 1,227 | 497 | 2,320 | (2,769 | ) | 1,275 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 30 | — | 30 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | $ | 1,227 | $ | 497 | $ | 2,290 | $ | (2,769 | ) | $ | 1,245 |
Nine months ended September 30, 2016 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Total revenue | $ | — | $ | — | $ | 6,759 | $ | — | $ | 6,759 | ||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 76 | 10 | 3,955 | — | 4,041 | |||||||||||||||
Information technology | — | — | 281 | — | 281 | |||||||||||||||
Premises | — | — | 257 | — | 257 | |||||||||||||||
Depreciation of fixed assets | — | — | 118 | — | 118 | |||||||||||||||
Amortization and impairment of intangible assets | — | — | 117 | — | 117 | |||||||||||||||
Other general expenses (income) | 5 | 7 | 758 | — | 770 | |||||||||||||||
Total operating expenses | 81 | 17 | 5,486 | — | 5,584 | |||||||||||||||
Operating income (loss) | (81 | ) | (17 | ) | 1,273 | — | 1,175 | |||||||||||||
Interest income | — | 13 | 14 | (21 | ) | 6 | ||||||||||||||
Interest expense | (145 | ) | (78 | ) | (10 | ) | 21 | (212 | ) | |||||||||||
Intercompany interest income (expense) | 10 | (405 | ) | 395 | — | — | ||||||||||||||
Intercompany other income (expense) | 217 | (292 | ) | 75 | — | — | ||||||||||||||
Other income (expense) | (3 | ) | (8 | ) | 39 | (1 | ) | 27 | ||||||||||||
Income (loss) from continuing operations before income taxes | (2 | ) | (787 | ) | 1,786 | (1 | ) | 996 | ||||||||||||
Income tax benefit (expense) | (33 | ) | (219 | ) | 379 | — | 127 | |||||||||||||
Net income (loss) from continuing operations | 31 | (568 | ) | 1,407 | (1 | ) | 869 | |||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 102 | — | 102 | |||||||||||||||
Net income (loss) before equity in earnings of subsidiaries | 31 | (568 | ) | 1,509 | (1 | ) | 971 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 914 | 836 | 268 | (2,018 | ) | — | ||||||||||||||
Net income | 945 | 268 | 1,777 | (2,019 | ) | 971 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 27 | — | 27 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | $ | 945 | $ | 268 | $ | 1,750 | $ | (2,019 | ) | $ | 944 |
Three months ended September 30, 2017 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income (loss) | $ | 185 | $ | (216 | ) | $ | 93 | $ | 130 | $ | 192 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 7 | — | 7 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | 185 | (216 | ) | 86 | 130 | 185 | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of financial instruments | — | 3 | 8 | — | 11 | |||||||||||||||
Foreign currency translation adjustments | — | — | 243 | — | 243 | |||||||||||||||
Post-retirement benefit obligation | — | 7 | 11 | — | 18 | |||||||||||||||
Total other comprehensive income (loss) | — | 10 | 262 | — | 272 | |||||||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | 265 | 245 | 255 | (765 | ) | — | ||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 7 | — | 7 | |||||||||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | 265 | 255 | 510 | (765 | ) | 265 | ||||||||||||||
Comprehensive income (loss) attributable to Aon shareholders | $ | 450 | $ | 39 | $ | 596 | $ | (635 | ) | $ | 450 |
Three months ended September 30, 2016 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income (loss) | $ | 316 | $ | (120 | ) | $ | 310 | $ | (180 | ) | $ | 326 | ||||||||
Less: Net income attributable to noncontrolling interests | — | — | 7 | — | 7 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | 316 | (120 | ) | 303 | (180 | ) | 319 | |||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of financial instruments | — | 1 | (1 | ) | — | — | ||||||||||||||
Foreign currency translation adjustments | — | 1 | (87 | ) | (3 | ) | (89 | ) | ||||||||||||
Post-retirement benefit obligation | — | 7 | 11 | — | 18 | |||||||||||||||
Total other comprehensive income (loss) | — | 9 | (77 | ) | (3 | ) | (71 | ) | ||||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | (68 | ) | (83 | ) | (74 | ) | 225 | — | ||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | (68 | ) | (74 | ) | (151 | ) | 222 | (71 | ) | |||||||||||
Comprehensive income (loss) attributable to Aon shareholders | $ | 248 | $ | (194 | ) | $ | 152 | $ | 42 | $ | 248 |
Nine months ended September 30, 2017 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income (loss) | $ | 1,227 | $ | 497 | $ | 2,320 | $ | (2,769 | ) | $ | 1,275 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 30 | — | 30 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | 1,227 | 497 | 2,290 | (2,769 | ) | 1,245 | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of financial instruments | — | 3 | 10 | — | 13 | |||||||||||||||
Foreign currency translation adjustments | — | — | 452 | (18 | ) | 434 | ||||||||||||||
Post-retirement benefit obligation | — | 23 | 33 | — | 56 | |||||||||||||||
Total other comprehensive income (loss) | — | 26 | 495 | (18 | ) | 503 | ||||||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | 518 | 480 | 506 | (1,504 | ) | — | ||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 3 | — | 3 | |||||||||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | 518 | 506 | 998 | (1,522 | ) | 500 | ||||||||||||||
Comprehensive income (loss) attributable to Aon shareholders | $ | 1,745 | $ | 1,003 | $ | 3,288 | $ | (4,291 | ) | $ | 1,745 |
Nine months ended September 30, 2016 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income (loss) | $ | 945 | $ | 268 | $ | 1,777 | $ | (2,019 | ) | $ | 971 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 27 | — | 27 | |||||||||||||||
Net income (loss) attributable to Aon shareholders | 945 | 268 | 1,750 | (2,019 | ) | 944 | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of financial instruments | — | 1 | (12 | ) | — | (11 | ) | |||||||||||||
Foreign currency translation adjustments | (2 | ) | 22 | (248 | ) | 1 | (227 | ) | ||||||||||||
Post-retirement benefit obligation | — | 23 | (155 | ) | — | (132 | ) | |||||||||||||
Total other comprehensive income (loss) | (2 | ) | 46 | (415 | ) | 1 | (370 | ) | ||||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | (369 | ) | (425 | ) | (379 | ) | 1,173 | — | ||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | (371 | ) | (379 | ) | (794 | ) | 1,174 | (370 | ) | |||||||||||
Comprehensive income (loss) attributable to Aon shareholders | $ | 574 | $ | (111 | ) | $ | 956 | $ | (845 | ) | $ | 574 |
As of September 30, 2017 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3,110 | $ | 802 | $ | (3,163 | ) | $ | 749 | |||||||||
Short-term investments | — | 1,467 | 173 | — | 1,640 | |||||||||||||||
Receivables, net | — | 2 | 2,066 | — | 2,068 | |||||||||||||||
Fiduciary assets | — | — | 9,292 | — | 9,292 | |||||||||||||||
Intercompany receivables | 110 | 4,860 | 12,436 | (17,406 | ) | — | ||||||||||||||
Other current assets | — | 37 | 481 | — | 518 | |||||||||||||||
Current assets of discontinued operations | — | — | — | — | — | |||||||||||||||
Total Current Assets | 110 | 9,476 | 25,250 | (20,569 | ) | 14,267 | ||||||||||||||
Goodwill | — | — | 7,888 | — | 7,888 | |||||||||||||||
Intangible assets, net | — | — | 1,341 | — | 1,341 | |||||||||||||||
Fixed assets, net | — | — | 545 | — | 545 | |||||||||||||||
Deferred tax assets | 135 | 664 | 173 | (407 | ) | 565 | ||||||||||||||
Intercompany receivables | 391 | 261 | 8,728 | (9,380 | ) | — | ||||||||||||||
Prepaid pension | — | 5 | 1,015 | — | 1,020 | |||||||||||||||
Other non-current assets | 1 | 49 | 248 | — | 298 | |||||||||||||||
Investment in subsidiary | 11,900 | 17,748 | 509 | (30,157 | ) | — | ||||||||||||||
Non-current assets of discontinued operations | — | — | — | — | — | |||||||||||||||
TOTAL ASSETS | $ | 12,537 | $ | 28,203 | $ | 45,697 | $ | (60,513 | ) | $ | 25,924 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 2,929 | $ | 37 | $ | 1,785 | $ | (3,163 | ) | $ | 1,588 | |||||||||
Short-term debt and current portion of long-term debt | — | — | 305 | — | 305 | |||||||||||||||
Fiduciary liabilities | — | — | 9,292 | — | 9,292 | |||||||||||||||
Intercompany payables | 147 | 15,951 | 1,308 | (17,406 | ) | — | ||||||||||||||
Other current liabilities | 24 | 54 | 1,211 | — | 1,289 | |||||||||||||||
Current liabilities of discontinued operations | — | — | — | — | — | |||||||||||||||
Total Current Liabilities | 3,100 | 16,042 | 13,901 | (20,569 | ) | 12,474 | ||||||||||||||
Long-term debt | 4,247 | 1,414 | 1 | — | 5,662 | |||||||||||||||
Deferred tax liabilities | — | — | 490 | (407 | ) | 83 | ||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,234 | 378 | — | 1,612 | |||||||||||||||
Intercompany payables | — | 8,894 | 486 | (9,380 | ) | — | ||||||||||||||
Other non-current liabilities | 15 | 110 | 721 | — | 846 | |||||||||||||||
Non-current liabilities of discontinued operations | — | — | — | — | — | |||||||||||||||
TOTAL LIABILITIES | 7,362 | 27,694 | 15,977 | (30,356 | ) | 20,677 | ||||||||||||||
TOTAL AON SHAREHOLDERS’ EQUITY | 5,175 | 509 | 29,648 | (30,157 | ) | 5,175 | ||||||||||||||
Noncontrolling interests | — | — | 72 | — | 72 | |||||||||||||||
TOTAL EQUITY | 5,175 | 509 | 29,720 | (30,157 | ) | 5,247 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 12,537 | $ | 28,203 | $ | 45,697 | $ | (60,513 | ) | $ | 25,924 |
As of December 31, 2016 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 1,633 | $ | 655 | $ | (1,862 | ) | $ | 426 | |||||||||
Short-term investments | — | 140 | 150 | — | 290 | |||||||||||||||
Receivables, net | — | 3 | 2,103 | — | 2,106 | |||||||||||||||
Fiduciary assets | — | — | 8,959 | — | 8,959 | |||||||||||||||
Intercompany receivables | 105 | 1,880 | 9,825 | (11,810 | ) | — | ||||||||||||||
Other current assets | — | 25 | 222 | — | 247 | |||||||||||||||
Current assets of discontinued operations | — | — | 1,118 | — | 1,118 | |||||||||||||||
Total Current Assets | 105 | 3,681 | 23,032 | (13,672 | ) | 13,146 | ||||||||||||||
Goodwill | — | — | 7,410 | — | 7,410 | |||||||||||||||
Intangible assets, net | — | — | 1,890 | — | 1,890 | |||||||||||||||
Fixed assets, net | — | — | 550 | — | 550 | |||||||||||||||
Deferred tax assets | 134 | 726 | 171 | (706 | ) | 325 | ||||||||||||||
Intercompany receivables | 366 | 261 | 8,711 | (9,338 | ) | — | ||||||||||||||
Prepaid pension | — | 5 | 853 | — | 858 | |||||||||||||||
Other non-current assets | 2 | 119 | 239 | — | 360 | |||||||||||||||
Investment in subsidiary | 10,107 | 17,131 | (356 | ) | (26,882 | ) | — | |||||||||||||
Non-current assets of discontinued operations | — | — | 2,076 | — | 2,076 | |||||||||||||||
TOTAL ASSETS | $ | 10,714 | $ | 21,923 | $ | 44,576 | $ | (50,598 | ) | $ | 26,615 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 585 | $ | 44 | $ | 2,837 | $ | (1,862 | ) | $ | 1,604 | |||||||||
Short-term debt and current portion of long-term debt | 279 | 50 | 7 | — | 336 | |||||||||||||||
Fiduciary liabilities | — | — | 8,959 | — | 8,959 | |||||||||||||||
Intercompany payables | 142 | 10,399 | 1,269 | (11,810 | ) | — | ||||||||||||||
Other current liabilities | — | 63 | 593 | — | 656 | |||||||||||||||
Current liabilities of discontinued operations | — | — | 940 | — | 940 | |||||||||||||||
Total Current Liabilities | 1,006 | 10,556 | 14,605 | (13,672 | ) | 12,495 | ||||||||||||||
Long-term debt | 4,177 | 1,413 | 279 | — | 5,869 | |||||||||||||||
Deferred tax liabilities | — | — | 759 | (658 | ) | 101 | ||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,356 | 404 | — | 1,760 | |||||||||||||||
Intercompany payables | — | 8,877 | 461 | (9,338 | ) | — | ||||||||||||||
Other non-current liabilities | 8 | 77 | 634 | — | 719 | |||||||||||||||
Non-current liabilities of discontinued operations | — | — | 139 | — | 139 | |||||||||||||||
TOTAL LIABILITIES | 5,191 | 22,279 | 17,281 | (23,668 | ) | 21,083 | ||||||||||||||
TOTAL AON SHAREHOLDERS’ EQUITY | 5,523 | (356 | ) | 27,238 | (26,930 | ) | 5,475 | |||||||||||||
Noncontrolling interests | — | — | 57 | — | 57 | |||||||||||||||
TOTAL EQUITY | 5,523 | (356 | ) | 27,295 | (26,930 | ) | 5,532 | |||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 10,714 | $ | 21,923 | $ | 44,576 | $ | (50,598 | ) | $ | 26,615 |
Nine months ended September 30, 2017 | ||||||||||||||||||||
Aon | Aon | Other Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
Cash provided by (used for) operating activities - continuing operations | $ | (135 | ) | $ | 999 | $ | 987 | $ | (1,562 | ) | $ | 289 | ||||||||
Cash provided by operating activities - discontinued operations | — | — | 64 | — | 64 | |||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | (135 | ) | 999 | 1,051 | (1,562 | ) | 353 | |||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Proceeds from investments | — | 576 | 11 | (544 | ) | 43 | ||||||||||||||
Payments for investments | (16 | ) | (25 | ) | (571 | ) | 557 | (55 | ) | |||||||||||
Net purchases of short-term investments - non-fiduciary | — | (1,328 | ) | (16 | ) | — | (1,344 | ) | ||||||||||||
Acquisition of businesses, net of cash acquired | — | 1 | (173 | ) | — | (172 | ) | |||||||||||||
Sale of businesses, net of cash sold | — | — | 4,194 | — | 4,194 | |||||||||||||||
Capital expenditures | — | — | (125 | ) | — | (125 | ) | |||||||||||||
Cash provided by (used for) investing activities - continuing operations | (16 | ) | (776 | ) | 3,320 | 13 | 2,541 | |||||||||||||
Cash used for investing activities - discontinued operations | — | — | (19 | ) | — | (19 | ) | |||||||||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | (16 | ) | (776 | ) | 3,301 | 13 | 2,522 | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Share repurchase | (1,888 | ) | — | — | — | (1,888 | ) | |||||||||||||
Advances from (to) affiliates | 2,722 | 1,304 | (4,274 | ) | 248 | — | ||||||||||||||
Issuance of shares for employee benefit plans | (118 | ) | — | — | — | (118 | ) | |||||||||||||
Issuance of debt | 544 | 1,100 | 7 | — | 1,651 | |||||||||||||||
Repayment of debt | (835 | ) | (1,150 | ) | (13 | ) | — | (1,998 | ) | |||||||||||
Cash dividends to shareholders | (274 | ) | — | — | — | (274 | ) | |||||||||||||
Noncontrolling interests and other financing activities | — | — | (21 | ) | — | (21 | ) | |||||||||||||
Cash provided by (used for) financing activities - continuing operations | 151 | 1,254 | (4,301 | ) | 248 | (2,648 | ) | |||||||||||||
Cash used for financing activities - discontinued operations | — | — | — | — | — | |||||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 151 | 1,254 | (4,301 | ) | 248 | (2,648 | ) | |||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | 91 | — | 91 | |||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | 1,477 | 142 | (1,301 | ) | 318 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR (1) | — | 1,633 | 660 | (1,862 | ) | 431 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD (2) | $ | — | $ | 3,110 | $ | 802 | $ | (3,163 | ) | $ | 749 |
(1) | Includes $5 million of discontinued operations at December 31, 2016. |
(2) | There was no cash held by discontinued operations at September 30, 2017. |
Nine months ended September 30, 2016 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
Cash provided by (used for) operating activities - continuing operations | $ | 219 | $ | (664 | ) | $ | 1,597 | $ | — | $ | 1,152 | |||||||||
Cash provided by operating activities - discontinued operations | — | — | 323 | — | 323 | |||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 219 | (664 | ) | 1,920 | — | 1,475 | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Proceeds from investments | — | 19 | 12 | — | 31 | |||||||||||||||
Payments for investments | — | (25 | ) | (22 | ) | — | (47 | ) | ||||||||||||
Net sales of short-term investments - non-fiduciary | — | (99 | ) | (9 | ) | — | (108 | ) | ||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (198 | ) | — | (198 | ) | |||||||||||||
Sale of businesses, net of cash sold | — | — | 104 | — | 104 | |||||||||||||||
Capital expenditures | — | — | (107 | ) | — | (107 | ) | |||||||||||||
Cash provided by (used for) investing activities - continuing operations | — | (105 | ) | (220 | ) | — | (325 | ) | ||||||||||||
Cash used for investing activities - discontinued operations | — | — | (46 | ) | — | (46 | ) | |||||||||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | — | (105 | ) | (266 | ) | — | (371 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Share repurchase | (1,037 | ) | — | — | — | (1,037 | ) | |||||||||||||
Advances from (to) affiliates | 166 | 356 | (670 | ) | 148 | — | ||||||||||||||
Issuance of shares for employee benefit plans | (70 | ) | — | — | — | (70 | ) | |||||||||||||
Issuance of debt | 1,588 | 1,141 | — | — | 2,729 | |||||||||||||||
Repayment of debt | (608 | ) | (1,692 | ) | (8 | ) | — | (2,308 | ) | |||||||||||
Cash dividends to shareholders | (258 | ) | — | — | — | (258 | ) | |||||||||||||
Noncontrolling interests and other financing activities | — | — | (71 | ) | — | (71 | ) | |||||||||||||
Cash provided by (used for) financing activities - continuing operations | (219 | ) | (195 | ) | (749 | ) | 148 | (1,015 | ) | |||||||||||
Cash used for financing activities - discontinued operations | — | — | — | — | — | |||||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | (219 | ) | (195 | ) | (749 | ) | 148 | (1,015 | ) | |||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | 10 | — | 10 | |||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | (964 | ) | 915 | 148 | 99 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR(1) | — | 2,083 | 1,242 | (2,941 | ) | 384 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD(2) | $ | — | $ | 1,119 | $ | 2,157 | $ | (2,793 | ) | $ | 483 |
(1) | Includes $2 million of discontinued operations at December 31, 2015. |
(2) | Includes $3 million of discontinued operations at September 30, 2016. |
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