AON PLC, 10-Q filed on 7/26/2019
Quarterly Report
v3.19.2
Cover Page - shares
6 Months Ended
Jun. 30, 2019
Jul. 25, 2019
Cover page.    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2019  
Document Transition Report false  
Entity File Number 1-7933  
Entity Registrant Name Aon plc  
Entity Incorporation, State or Country Code X0  
Entity Tax Identification Number 98-1030901  
Entity Address, Address Line One 122 LEADENHALL STREET  
Entity Address, City or Town LONDON  
Entity Address, Country GB  
Entity Address, Postal Zip Code EC3V 4AN  
City Area Code 20  
Local Phone Number 7623 5500  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   235,841,886
Entity Central Index Key 0000315293  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q2  
v3.19.2
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenue        
Total revenue $ 2,606 $ 2,561 $ 5,749 $ 5,651
Expenses        
Compensation and benefits 1,501 1,494 3,085 3,110
Information technology 126 123 243 238
Premises 85 96 172 189
Depreciation of fixed assets 40 47 80 86
Amortization and impairment of intangible assets 97 282 194 392
Other general expenses 344 535 690 853
Total operating expenses 2,193 2,577 4,464 4,868
Operating income (loss) 413 (16) 1,285 783
Interest income 1 1 3 5
Interest expense (77) (69) (149) (139)
Other income (expense) 6 (3) 6 (18)
Income (loss) from continuing operations before income taxes 343 (87) 1,145 631
Income tax expense (benefit) 56 (144) 182 (30)
Net income from continuing operations 287 57 963 661
Net income from discontinued operations 0 1 0 7
Net income 287 58 963 668
Less: Net income attributable to noncontrolling interests 10 10 27 26
Net income attributable to Aon shareholders $ 277 $ 48 $ 936 $ 642
Basic net income per share attributable to Aon shareholders        
Continuing operations (in dollars per share) $ 1.15 $ 0.19 $ 3.88 $ 2.57
Discontinued operations (in dollars per share) 0 0.01 0 0.03
Net income (in dollars per share) 1.15 0.20 3.88 2.60
Diluted net income per share attributable to Aon shareholders        
Continuing operations (in dollars per share) 1.14 0.19 3.85 2.55
Discontinued operations (in dollars per share) 0 0 0 0.03
Net income (in dollars per share) $ 1.14 $ 0.19 $ 3.85 $ 2.58
Weighted average ordinary shares outstanding - basic (in shares) 240.6 246.0 241.4 247.2
Weighted average ordinary shares outstanding - diluted (in shares) 242.8 247.4 243.2 248.8
v3.19.2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Statement of Comprehensive Income [Abstract]        
Net income $ 287 $ 58 $ 963 $ 668
Less: Net income attributable to noncontrolling interests 10 10 27 26
Net income attributable to Aon shareholders 277 48 936 642
Other comprehensive income (loss), net of tax:        
Change in fair value of financial instruments (8) (1) (1) 13
Foreign currency translation adjustments (103) (460) 30 (213)
Postretirement benefit obligation 14 122 45 170
Total other comprehensive income (loss) (97) (339) 74 (30)
Less: Other comprehensive income (loss) attributable to noncontrolling interests 0 (6) 2 (3)
Total other comprehensive income (loss) attributable to Aon shareholders (97) (333) 72 (27)
Comprehensive income (loss) attributable to Aon shareholders $ 180 $ (285) $ 1,008 $ 615
v3.19.2
Condensed Consolidated Statements of Financial Position - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Current assets    
Cash and cash equivalents $ 581 $ 656
Short-term investments 235 172
Receivables, net 3,227 2,760
Fiduciary assets 12,071 10,166
Other current assets 631 618
Total current assets 16,745 14,372
Goodwill 8,198 8,171
Intangible assets, net 973 1,149
Fixed assets, net 599 588
Operating lease right-of-use assets 959  
Deferred tax assets 599 561
Prepaid pension 1,213 1,133
Other non-current assets 521 448
Total assets 29,807 26,422
Current liabilities    
Accounts payable and accrued liabilities 1,369 1,943
Short-term debt and current portion of long-term debt 844 251
Fiduciary liabilities 12,071 10,166
Other current liabilities 1,197 936
Total current liabilities 15,481 13,296
Long-term debt 6,740 5,993
Non-current operating lease liabilities 962  
Deferred tax liabilities 211 181
Pension, other postretirement, and postemployment liabilities 1,576 1,636
Other non-current liabilities 924 1,097
Total liabilities 25,894 22,203
Equity    
Ordinary shares - $0.01 nominal value Authorized: 750 shares (issued: 2019 - 235.7; 2018 - 240.1) 2 2
Additional paid-in capital 6,002 5,965
Retained earnings 1,669 2,093
Accumulated other comprehensive loss (3,837) (3,909)
Total Aon shareholders' equity 3,836 4,151
Noncontrolling interests 77 68
Total equity 3,913 4,219
Total liabilities and equity $ 29,807 $ 26,422
v3.19.2
Condensed Consolidated Statements of Financial Position (Parenthetical) - $ / shares
Jun. 30, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Common stock, nominal or par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized shares (in shares) 750,000,000 750,000,000
Common stock, issued shares (in shares) 235,700,000 240,100,000
v3.19.2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)
shares in Millions, $ in Millions
Total
Ordinary Shares and Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss, Net of Tax
Non- controlling Interests
Beginning Balance (in shares) at Dec. 31, 2017   247.6      
Beginning Balance at Dec. 31, 2017 $ 5,140 $ 5,777 $ 2,795 $ (3,497) $ 65
Increase (Decrease) in Shareholders' Equity          
Net income 610   594   16
Shares issued - employee stock compensation plans (in shares)   1.5      
Shares issued - employee stock compensation plans (109) $ (109)      
Shares purchased (in shares)   (3.9)      
Shares purchased (553)   (553)    
Share-based compensation expense 77 $ 77      
Dividends to shareholders (89)   (89)    
Net change in fair value of financial instruments 14     14  
Net foreign currency translation adjustments 247     244 3
Net postretirement benefit obligation 48     48  
Ending Balance (in shares) at Mar. 31, 2018   245.2      
Ending Balance at Mar. 31, 2018 5,385 $ 5,745 2,747 (3,191) 84
Beginning Balance (in shares) at Dec. 31, 2017   247.6      
Beginning Balance at Dec. 31, 2017 5,140 $ 5,777 2,795 (3,497) 65
Increase (Decrease) in Shareholders' Equity          
Net income 668        
Net change in fair value of financial instruments 13        
Net foreign currency translation adjustments (213)        
Net postretirement benefit obligation 170        
Ending Balance (in shares) at Jun. 30, 2018   243.0      
Ending Balance at Jun. 30, 2018 4,618 $ 5,774 2,295 (3,524) 73
Beginning Balance (in shares) at Mar. 31, 2018   245.2      
Beginning Balance at Mar. 31, 2018 5,385 $ 5,745 2,747 (3,191) 84
Increase (Decrease) in Shareholders' Equity          
Net income 58   48   10
Shares issued - employee stock compensation plans (in shares)   0.6      
Shares issued - employee stock compensation plans (41) $ (41)      
Shares purchased (in shares)   (2.8)      
Shares purchased (402)   (402)    
Share-based compensation expense 70 $ 70      
Dividends to shareholders (98)   (98)    
Net change in fair value of financial instruments (1)     (1)  
Net foreign currency translation adjustments (460)     (454) (6)
Net postretirement benefit obligation 122     122  
Purchases of shares from noncontrolling interests (1)       (1)
Dividends paid to noncontrolling interests on subsidiary common stock (14)       (14)
Ending Balance (in shares) at Jun. 30, 2018   243.0      
Ending Balance at Jun. 30, 2018 $ 4,618 $ 5,774 2,295 (3,524) 73
Beginning Balance (in shares) at Dec. 31, 2018 240.1 240.1      
Beginning Balance at Dec. 31, 2018 $ 4,219 $ 5,967 2,093 (3,909) 68
Increase (Decrease) in Shareholders' Equity          
Net income 676   659   17
Shares issued - employee stock compensation plans (in shares)   1.4      
Shares issued - employee stock compensation plans (96) $ (96)      
Shares purchased (in shares)   (0.6)      
Shares purchased (101)   (101)    
Share-based compensation expense 89 $ 89      
Dividends to shareholders (96)   (96)    
Net change in fair value of financial instruments 7     7  
Net foreign currency translation adjustments 133     131 2
Net postretirement benefit obligation 31     31  
Ending Balance (in shares) at Mar. 31, 2019   240.9      
Ending Balance at Mar. 31, 2019 $ 4,862 $ 5,960 2,555 (3,740) 87
Beginning Balance (in shares) at Dec. 31, 2018 240.1 240.1      
Beginning Balance at Dec. 31, 2018 $ 4,219 $ 5,967 2,093 (3,909) 68
Increase (Decrease) in Shareholders' Equity          
Net income 963        
Net change in fair value of financial instruments (1)        
Net foreign currency translation adjustments 30        
Net postretirement benefit obligation $ 45        
Ending Balance (in shares) at Jun. 30, 2019 235.7 235.7      
Ending Balance at Jun. 30, 2019 $ 3,913 $ 6,004 1,669 (3,837) 77
Beginning Balance (in shares) at Mar. 31, 2019   240.9      
Beginning Balance at Mar. 31, 2019 4,862 $ 5,960 2,555 (3,740) 87
Increase (Decrease) in Shareholders' Equity          
Net income 287   277   10
Shares issued - employee stock compensation plans (in shares)   0.6      
Shares issued - employee stock compensation plans (47) $ (47)      
Shares purchased (in shares)   (5.8)      
Shares purchased (1,056)   (1,056)    
Share-based compensation expense 91 $ 91      
Dividends to shareholders (107)   (107)    
Net change in fair value of financial instruments (8)     (8)  
Net foreign currency translation adjustments (103)     (103)  
Net postretirement benefit obligation 14     14  
Dividends paid to noncontrolling interests on subsidiary common stock $ (20)       (20)
Ending Balance (in shares) at Jun. 30, 2019 235.7 235.7      
Ending Balance at Jun. 30, 2019 $ 3,913 $ 6,004 $ 1,669 $ (3,837) $ 77
v3.19.2
Condensed Consolidated Statement of Shareholders' Equity Unaudited (Parenthetical) - $ / shares
3 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]        
Dividends (in dollars per share) $ 0.44 $ 0.40 $ 0.40 $ 0.36
v3.19.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash flows from operating activities    
Net income $ 963 $ 668
Net income from discontinued operations 0 7
Adjustments to reconcile net income to cash provided by operating activities:    
(Gain) loss from sales of businesses, net (7) 1
Depreciation of fixed assets 80 86
Amortization and impairment of intangible assets 194 392
Share-based compensation expense 180 147
Deferred income taxes (25) (93)
Change in assets and liabilities:    
Fiduciary receivables (926) (883)
Short-term investments — funds held on behalf of clients (961) (154)
Fiduciary liabilities 1,887 1,037
Receivables, net (477) (371)
Accounts payable and accrued liabilities (579) (495)
Restructuring reserves (18) 12
Current income taxes 10 (144)
Pension, other postretirement and postemployment liabilities (92) (84)
Other assets and liabilities 132 301
Cash provided by operating activities 361 413
Cash flows from investing activities    
Proceeds from investments 14 23
Payments for investments (60) (36)
Net sales (purchases) of short-term investments — non-fiduciary (62) 352
Acquisition of businesses, net of cash acquired (15) (50)
Sale of businesses, net of cash sold 7 1
Capital expenditures (106) (111)
Cash provided by (used for) investing activities (222) 179
Cash flows from financing activities    
Share repurchase (1,155) (971)
Issuance of shares for employee benefit plans (144) (150)
Issuance of debt 3,559 2,552
Repayment of debt (2,228) (2,027)
Cash dividends to shareholders (203) (187)
Noncontrolling interests and other financing activities (61) (15)
Cash used for financing activities (232) (798)
Effect of exchange rates on cash and cash equivalents 18 (63)
Net increase (decrease) in cash and cash equivalents (75) (269)
Cash and cash equivalents at beginning of period 656 756
Cash and cash equivalents at end of period 581 487
Supplemental disclosures:    
Interest paid 147 145
Income taxes paid, net of refunds $ 197 $ 207
v3.19.2
Basis of Presentation
6 Months Ended
Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements and Notes thereto (the “Financial Statements”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Financial Statements include the accounts of Aon plc and all of its controlled subsidiaries (“Aon” or the “Company”). Intercompany accounts and transactions have been eliminated. The Financial Statements include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows for all periods presented.
Certain information and disclosures normally included in the Financial Statements prepared in accordance with U.S. GAAP have been condensed or omitted. These Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The results for the three and six months ended June 30, 2019 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2019.
Use of Estimates
The preparation of the accompanying Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the Financial Statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate.  Illiquid credit markets, volatile equity markets, and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the Financial Statements in future periods.
v3.19.2
Accounting Principles and Practices
6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Accounting Principles and Practices Accounting Principles and Practices
Adoption of New Accounting Standards
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
In February 2018, the FASB issued new accounting guidance related to reclassification of certain tax effects from accumulated other comprehensive income. The guidance allowed a reclassification from accumulated comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The guidance was effective for the Company in the first quarter of 2019. For the three and six months ended June 30, 2019, there was no impact on the net income of the Company as Aon did not elect to reclassify stranded tax effects on the Condensed Consolidated Statement of Financial Position. It is the Company’s policy to release income tax effects from accumulated other comprehensive loss using the portfolio approach.
Targeted Improvements to Accounting for Hedging Activities
In August 2017, the FASB issued new accounting guidance on targeted improvements to accounting for hedging activities. The new guidance amended its hedge accounting model to enable entities to better portray their risk management activities in the financial statements. The guidance eliminated the requirement to separately measure and report hedge ineffectiveness and required the effect of a hedging instrument to be presented in the same income statement line as the hedged item. The new guidance was effective for Aon in the first quarter of 2019 and the Company adopted it on a modified retrospective basis with no cumulative effect adjustment to accumulated other comprehensive income or corresponding adjustment to Retained earnings. Changes to the Condensed Consolidated Statement of Income and financial statement disclosures were applied prospectively. Under the new guidance, gains or losses on certain derivative hedging instruments are recognized in revenue, as opposed to other income (expense) under the previous guidance. For the three and six months ended June 30, 2019, the adoption of this guidance had no impact on the net income and an insignificant impact on the operating income of the Company.
Leases
In February 2016, the FASB issued a new accounting standard on leases, which requires lessees to recognize assets and liabilities for most leases. Under the new standard, a lessee is required to recognize in the Consolidated Statements of Financial Position, liabilities to make future lease payments and right-of-use (“ROU”) assets representing its right to use the underlying assets for the lease term. The recognition, measurement, timing, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP.
The Company adopted the new standard as of January 1, 2019, using the modified retrospective approach for all leases existing at, or entered into after, the period of adoption. Under this approach, prior periods were not restated. Rather, lease balances and other disclosures for prior periods were provided in the notes to the financial statements as previously reported, and the cumulative effect of initially applying the guidance was recognized in the Condensed Consolidated Statement of Financial Position.
The modified retrospective approach includes several optional practical expedients available that entities may elect to apply upon transition. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allows a lessee to carryforward their population of existing leases, the classification of each lease, as well as the treatment of initial direct costs as of the period of adoption. In addition, the Company elected the practical expedient related to lease and non-lease components, as an accounting policy election for all asset classes, which allows a lessee to not separate non-lease from lease components and instead account for consideration paid in a contract as a single lease component. Lastly, the Company did not elect the practical expedient related to hindsight analysis which allows a lessee to use hindsight in determining the lease term and in assessing impairment of the entity’s ROU assets.
The Company has made a policy election to not recognize ROU assets and lease liabilities that arise from leases with an initial term of twelve months or less on the Condensed Consolidated Statements of Financial Position. However, the Company will recognize these lease payments in the Condensed Consolidated Statements of Income on a straight-line basis over the lease term and variable lease payments in the period in which the obligation is incurred. The Company has chosen to apply this accounting policy across all classes of underlying assets. Additionally, upon adoption, the Company utilized a discount rate to determine the present value of the lease payments based on information available as of January 1, 2019.
Beginning January 1, 2019, operating ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at the commencement date. Operating leases in effect prior to January 1, 2019 were recognized at the present value of the remaining payments on the remaining lease term as of January 1, 2019. Upon adoption, the Company recognized ROU assets and lease liabilities of $1.1 billion and $1.3 billion, respectively. The standard had an insignificant impact on the Condensed Consolidated Statements of Income and no impact on the Condensed Consolidated Statements of Cash Flows. Refer to Note 20 “Lease Commitments” for further information including significant assumptions and judgments made.

As a result of applying the modified retrospective approach to adopt the new leasing standard, the following adjustments were made to the Condensed Consolidated Statements of Financial Position as of January 1, 2019 (in millions):
 
December 31,
2018
 
 
 
January 1,
2019
 
As Reported
 
Adjustments
 
As Adjusted
Assets
 
 
 
 
 
Operating lease right-of-use assets
$

 
$
1,021

 
$
1,021

Other non-current assets
$
448

 
$
78

 
$
526

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Other current liabilities
$
936

 
$
219

 
$
1,155

Non-current operating lease liabilities
$

 
$
1,014

 
$
1,014

Other non-current liabilities
$
1,097

 
$
(134
)
 
$
963


Accounting Standards Issued But Not Yet Adopted
Changes to the Disclosure Requirements for Defined Benefit Plans
In August 2018, the FASB issued new accounting guidance related to the disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. The guidance requires sponsors of these plans to provide additional disclosures, including weighted average interest rates used in the entity’s cash balance pension plans and a narrative description of reasons for any significant gains or losses impacting the benefit obligation for the period, and eliminates certain previous disclosure requirements. The new guidance is effective for Aon in the first quarter of 2021 with early adoption permitted and will be applied retrospectively. The Company is currently evaluating the impact that the guidance will have on the Financial Statements and the period of adoption.
Simplifying the Test for Goodwill Impairment
In January 2017, the FASB issued new accounting guidance on simplifying the test for goodwill impairment. Currently the standard requires an entity to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. The new guidance removes Step 2. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. An entity will apply the new guidance on a prospective basis. The new guidance is effective for Aon in the first quarter of 2020 and early adoption is permitted. The Company is currently evaluating the period of adoption, but does not expect a significant impact on the Financial Statements.
Credit Losses
In June 2016, the FASB issued a new accounting standard on the measurement of credit losses on financial instruments. The new standard replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. An entity will apply the new standard through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the standard is effective. The new standard is effective for Aon in the first quarter of 2020 with early adoption permitted. The Company is currently evaluating the impact that the standard will have on the Financial Statements and will adopt the new accounting standard in the first quarter of 2020.
v3.19.2
Revenue from Contracts with Customers
6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Disaggregation of Revenue
The following table summarizes revenue from contracts with customers by principal service line (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Commercial Risk Solutions
 
$
1,167

 
$
1,166

 
$
2,285

 
$
2,350

Reinsurance Solutions
 
420

 
380

 
1,208

 
1,122

Retirement Solutions
 
419

 
431

 
839

 
855

Health Solutions
 
317

 
309

 
803

 
760

Data & Analytic Services
 
286

 
277

 
622

 
571

Elimination
 
(3
)
 
(2
)
 
(8
)
 
(7
)
Total revenue
 
$
2,606

 
$
2,561

 
$
5,749

 
$
5,651


Consolidated revenue from contracts with customers by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
United States
 
$
1,146

 
$
1,125

 
$
2,307

 
$
2,241

Americas other than United States
 
241

 
243

 
467

 
480

United Kingdom
 
400

 
413

 
852

 
897

Europe, Middle East, & Africa other than United Kingdom
 
501

 
493

 
1,510

 
1,472

Asia Pacific
 
318

 
287

 
613

 
561

Total revenue
 
$
2,606

 
$
2,561

 
$
5,749

 
$
5,651



Contract Costs

An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Balance at beginning of period
 
$
236

 
$
240

 
$
329

 
$
298

Additions
 
336

 
341

 
682

 
711

Amortization
 
(357
)
 
(353
)
 
(796
)
 
(785
)
Impairment
 

 

 

 

Foreign currency translation and other
 
1

 
(12
)
 
1

 
(8
)
Balance at end of period
 
$
216

 
$
216

 
$
216

 
$
216



An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Balance at beginning of period
 
$
155

 
$
144

 
$
156

 
$
145

Additions
 
17

 
13

 
26

 
21

Amortization
 
(11
)
 
(11
)
 
(22
)
 
(21
)
Impairment
 

 

 

 

Foreign currency translation and other
 

 
(2
)
 
1

 
(1
)
Balance at end of period
 
$
161

 
$
144

 
$
161

 
$
144


v3.19.2
Cash and Cash Equivalents and Short-term Investments
6 Months Ended
Jun. 30, 2019
Cash, Cash Equivalents, and Short-term Investments [Abstract]  
Cash and Cash Equivalents and Short-term Investments Cash and Cash Equivalents and Short-term Investments
Cash and cash equivalents include cash balances and all highly liquid instruments with initial maturities of three months or less.  Short-term investments consist of money market funds. The estimated fair value of cash and cash equivalents and short-term investments approximates their carrying values.
At June 30, 2019, Cash and cash equivalents and Short-term investments were $816 million compared to $828 million at December 31, 2018, a decrease of $12 million. Of the total balances, $99 million and $91 million were restricted as to their use at June 30, 2019 and December 31, 2018, respectively. Included within Short-term investments as of June 30, 2019 and December 31, 2018 were £42.8 million ($54.3 million at June 30, 2019 exchange rates) and £42.7 million ($53.9 million at December 31, 2018 exchange rates), respectively, of operating funds required to be held by the Company in the United Kingdom (the “U.K.”) by the Financial Conduct Authority (the “FCA”), a U.K.-based regulator.
v3.19.2
Other Financial Data
6 Months Ended
Jun. 30, 2019
Other Financial Data [Abstract]  
Other Financial Data Other Financial Data
Condensed Consolidated Statements of Income Information
Other Income (Expense)
Other income (expense) consists of the following (in millions):
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2019
 
2018
 
2019
 
2018
Foreign currency remeasurement
$
11

 
$
29

 
$

 
$
13

Disposal of businesses
2

 

 
7

 
(1
)
Pension and other postretirement
5

 
(7
)
 
9

 
(5
)
Equity earnings
1

 
1

 
2

 
2

Financial instruments
(13
)
 
(27
)
 
(12
)
 
(27
)
Other

 
1

 

 

Total
$
6

 
$
(3
)
 
$
6

 
$
(18
)

Condensed Consolidated Statements of Financial Position Information
Allowance for Doubtful Accounts
An analysis of the allowance for doubtful accounts are as follows (in millions):
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2019
 
2018
 
2019
 
2018
Balance at beginning of period
$
64

 
$
65

 
$
64

 
$
59

Provision charged to Other general expenses
4

 
3

 
12

 
11

Accounts written off, net of recoveries
(3
)
 
(6
)
 
(11
)
 
(8
)
Balance at end of period
$
65

 
$
62

 
$
65

 
$
62


Other Current Assets
The components of Other current assets are as follows (in millions):
As of
June 30,
2019
 
December 31,
2018
Costs to fulfill contracts with customers (1)
$
216

 
$
329

Prepaid expenses
128

 
97

Taxes receivable
145

 
113

Other (2)
142

 
79

Total
$
631

 
$
618


(1)
Refer to Note 3 “Revenue from Contracts with Customers” for further information.
(2)
December 31, 2018 includes $12 million previously classified as “Receivables from the Divested Business”.
Other Non-Current Assets
The components of Other non-current assets are as follows (in millions):
As of
June 30,
2019
 
December 31,
2018
Costs to obtain contracts with customers (1)
$
161

 
$
156

Taxes receivable
100

 
100

Leases (2)
65

 

Investments
54

 
54

Other
141

 
138

Total
$
521

 
$
448


(1)
Refer to Note 3 “Revenue from Contracts with Customers” for further information.
(2)
Refer to Note 20 “Lease Commitments” for further information.
Other Current Liabilities
The components of Other current liabilities are as follows (in millions):
As of
June 30,
2019
 
December 31,
2018
Deferred revenue (1)
$
337

 
$
251

Leases (2)
223

 

Taxes payable
133

 
83

Other
504

 
602

Total
$
1,197

 
$
936


(1)
During the three and six months ended June 30, 2019, $95 million and $241 million, respectively, was recognized in the Condensed Consolidated Statements of Income. During the three and six months ended June 30, 2018, $115 million and $215 million, respectively, was recognized in the Condensed Consolidated Statements of Income.
(2)
Refer to Note 20 “Lease Commitments” for further information.
Other Non-Current Liabilities
The components of Other non-current liabilities are as follows (in millions):
As of
June 30,
2019
 
December 31,
2018
Taxes payable (1)
$
576

 
$
585

Leases
37

 
169

Deferred revenue
59

 
65

Compensation and benefits
49

 
56

Other
203

 
222

Total
$
924

 
$
1,097


(1) Includes $221 million and $240 million for the non-current portion of the one-time mandatory transition tax on accumulated foreign earnings as of June 30, 2019 and December 31, 2018, respectively.
v3.19.2
Discontinued Operations
6 Months Ended
Jun. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
On February 9, 2017, the Company entered into a Purchase Agreement with Tempo Acquisition, LLC (the “Purchase Agreement”) to sell its benefits administration and business process outsourcing business (the “Divested Business”) to an entity formed and controlled by affiliates of The Blackstone Group L.P. (the “Buyer”) and certain designated purchasers that are direct or indirect subsidiaries of the Buyer.
On May 1, 2017, the Buyer purchased all of the outstanding equity interests of the Divested Business, plus certain related assets and liabilities, for a purchase price of $4.3 billion in cash paid at closing, subject to customary adjustments set forth in the Purchase Agreement, and deferred consideration of up to $500 million (the “Transaction”). Cash proceeds after customary adjustments and before taxes due were $4.2 billion.
Aon and the Buyer entered into certain transaction related agreements at the closing, including two commercial agreements, a transition services agreement, certain intellectual property license agreements, subleases, and other customary agreements. Aon expects to continue to be a significant client of the Divested Business and the Divested Business has agreed to use Aon for its broking and other services for a specified period of time.
The financial results of the Divested Business for the three and six months ended June 30, 2019 and 2018 are presented as Income from discontinued operations on the Company’s Condensed Consolidated Statements of Income. The following table presents the financial results of the Divested Business (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30

 
2019
 
2018
 
2019
 
2018
Expenses
 
 
 
 
 
 
 
 
Total operating expenses
 
$
1

 
$

 
$
1

 
$
3

Loss from discontinued operations before income taxes
 
(1
)
 

 
(1
)
 
(3
)
Income tax benefit
 
(1
)
 

 
(1
)
 
(1
)
Net loss from discontinued operations excluding gain
 

 

 

 
(2
)
Gain on sale of discontinued operations, net of tax
 

 
1

 

 
9

Net income from discontinued operations
 
$

 
$
1

 
$

 
$
7


There were no Cash and cash equivalents of discontinued operations at June 30, 2019. Total proceeds received for the sale of the Divested Business and taxes paid as a result of the sale are recognized on the Condensed Consolidated Statements of Cash Flows in Cash provided by investing activities - continuing operations and Cash provided by operating activities - continuing operations, respectively.
v3.19.2
Restructuring
6 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
In 2017, Aon initiated a global restructuring plan (the “Restructuring Plan”) in connection with the sale of the Divested Business. The Restructuring Plan is intended to streamline operations across the organization and deliver greater efficiency, insight, and connectivity. The Company expects these restructuring activities and related expenses to affect continuing operations through the fourth quarter of 2019, including an estimated 5,000 to 5,600 total role eliminations. In the second quarter of 2019, Aon updated the Restructuring Plan for additional opportunities that were identified in the quarter, which are expected to result in additional estimated charges of $125 million in 2019.
The Restructuring Plan is expected to result in cumulative charges of approximately $1,350 million through the end of the plan, consisting of approximately $530 million in employee termination costs, $130 million in technology rationalization costs, $80 million in lease consolidation costs, $45 million in non-cash asset impairments, and $565 million in other costs, including certain separation costs associated with the sale of the Divested Business.
From the inception of the Restructuring Plan through June 30, 2019, the Company has eliminated 5,091 positions and incurred total charges of $1,200 million for restructuring and related separation costs. These charges are included in Compensation and benefits, Information technology, Premises, Depreciation of fixed assets, and Other general expenses in the accompanying Condensed Consolidated Statements of Income.
The following table summarizes restructuring and separation costs by type that have been incurred through June 30, 2019 and are estimated to be incurred through the end of the Restructuring Plan (in millions). Estimated costs by type may be revised in future periods as these assumptions are updated:
 
 
Three Months Ended June 30, 2019
 
Six Months Ended June 30, 2019
 
Inception to Date
 
Estimated Remaining Costs
 
Estimated Total Cost (1)
Workforce reduction
 
$
78

 
$
102

 
$
516

 
$
14

 
$
530

Technology rationalization (2)
 
4

 
15

 
95

 
35

 
130

Lease consolidation (2)
 
5

 
14

 
50

 
30

 
80

Asset impairments
 
2

 
2

 
41

 
4

 
45

Other costs associated with restructuring and separation (2) (3)
 
38

 
85

 
498

 
67

 
565

Total restructuring and related expenses
 
$
127

 
$
218

 
$
1,200

 
$
150

 
$
1,350

(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. Estimated Total Cost includes $100 million of non-cash charges.
(2)
Total contract termination costs incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs, respectively, associated with restructuring and separation were for the three months ended June 30, 2019, $2 million, $4 million, and $1 million; for the six months ended June 30, 2019, were $3 million, $13 million, and $3 million; and since inception of the Restructuring Plan, were $9 million, $46 million, and $91 million. Total estimated contract termination costs expected to be incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs associated with restructuring and separation, are $15 million, $80 million, and $95 million, respectively.
(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.

The changes in the Company’s liabilities for the Restructuring Plan as of June 30, 2019 are as follows (in millions):
 
 
 
Balance as of December 31, 2018
 
$
201

Expensed
 
204

Cash payments
 
(222
)
Foreign currency translation
 
1

Balance as of June 30, 2019
 
$
184


v3.19.2
Acquisitions and Dispositions of Businesses
6 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
Acquisitions and Dispositions of Businesses Acquisitions and Dispositions of Businesses
Completed Acquisitions
The Company completed one acquisition during the six months ended June 30, 2019 and five acquisitions during the six months ended June 30, 2018. The following table includes the fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisitions (in millions):
 
 
Six Months Ended June 30, 2019
Consideration Transferred
 
$
17

Deferred and contingent consideration
 
5

Aggregate consideration transferred
 
$
22

 
 
 
Assets acquired
 
 
Cash and cash equivalents
 
$
2

Goodwill
 
15

Intangible assets, net
 
9

Other assets
 
4

Total assets acquired
 
30

Liabilities assumed
 
 
Current liabilities
 
6

Other non-current liabilities
 
2

Total liabilities assumed
 
8

Net assets acquired
 
$
22


The results of operations of these acquisitions are included in the Financial Statements as of the respective acquisition dates. The Company’s results of operations would not have been materially different if these acquisitions had been reported from the beginning of the period in which they were acquired.
2019 Acquisitions
On January 1, 2019, the Company completed the transaction to acquire Chapka Assurances SAS based in France.
2018 Acquisitions
On May 9, 2018, the Company completed the transaction to acquire certain assets of 601West, a division of Lee & Hayes, P.L.L.C. based in the United States.
On April 24, 2018, the Company completed the transaction to acquire Inspiring Benefits, S.L., a Spain-based firm specialized in employee loyalty, wellbeing, and rewards programs.
On March 1, 2018, the Company completed the transaction to acquire the business and assets of the trade credit business of Niche International Business Proprietary Limited, a trade credit brokerage based in Johannesburg, South Africa.
On March 1, 2018, the Company completed the transaction to acquire Affinity Risk Partners (Brokers) Pty. Ltd., an insurance broker in Victoria, Australia.
On January 19, 2018, the Company completed the transaction to acquire substantially all of the assets of The Burchfield Group, a provider in pharmacy benefit consulting, auditing, and health plan compliance services based in the United States.
Completed Dispositions
The Company completed three dispositions during the three months ended June 30, 2019 and four dispositions during the six months ended June 30, 2019. The Company completed one disposition during the three and six months ended June 30, 2018.
Total pretax gains recognized for the three and six months ended June 30, 2019 were $2 million and $7 million, respectively. There were no pretax gains or losses for the three months ended June 30, 2018 and total pretax losses, net of gains, were $1 million for
the six months ended June 30, 2018. Gains and losses recognized as a result of a disposition are included in Other income (expense) in the Condensed Consolidated Statements of Income.
v3.19.2
Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
The changes in the net carrying amount of goodwill for the six months ended June 30, 2019 are as follows (in millions):
Balance as of December 31, 2018
$
8,171

Goodwill related to current year acquisitions
15

Goodwill related to disposals
(9
)
Goodwill related to prior year acquisitions
2

Foreign currency translation and other
19

Balance as of June 30, 2019
$
8,198


Other intangible assets by asset class are as follows (in millions):
 
June 30, 2019
 
December 31, 2018
 
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
$
2,254

 
$
1,517

 
$
737

 
$
2,240

 
$
1,444

 
$
796

Tradenames
1,028

 
847

 
181

 
1,027

 
740

 
287

Technology and other
385

 
330

 
55

 
391

 
325

 
66

Total
$
3,667

 
$
2,694

 
$
973

 
$
3,658

 
$
2,509

 
$
1,149


The estimated future amortization for finite lived intangible assets as of June 30, 2019 is as follows (in millions):
Remainder of 2019
$
192

2020
223

2021
128

2022
87

2023
74

2024
58

Thereafter
211

Total
$
973


v3.19.2
Debt
6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Debt Debt
Notes
On May 2, 2019, Aon Corporation issued $750 million 3.75% Senior Notes due May 2029. The Company used the net proceeds of the offering to pay down a portion of outstanding commercial paper and for general corporate purposes.
On December 3, 2018, Aon Corporation issued $350 million 4.50% Senior Notes due December 2028. The Company used the net proceeds of the offering to pay down a portion of outstanding commercial paper and for general corporate purposes.
On March 8, 2018, the Company’s CAD 375 million ($291 million at March 8, 2018 exchange rates) 4.76% Senior Note due March 2018 issued by a Canadian subsidiary of Aon Corporation matured and was repaid in full.
Revolving Credit Facilities
As of June 30, 2019, Aon plc had two primary committed credit facilities outstanding: its $900 million multi-currency United States (“U.S.”) credit facility expiring in February 2022 and its $400 million multi-currency U.S. credit facility expiring in October 2022 (collectively, the “2022 Facilities”).
Each of these facilities includes customary representations, warranties and covenants, including financial covenants that require Aon to maintain specified ratios of adjusted consolidated earnings before interest, taxes, depreciation, and amortization (“EBITDA”) to consolidated interest expense and consolidated debt to adjusted consolidated EBITDA, in each case, tested quarterly. At June 30, 2019, Aon did not have borrowings under the 2022 Facilities, and was in compliance with the financial covenants and all other covenants contained therein during the rolling twelve months ended June 30, 2019.
Commercial Paper
Aon Corporation, a wholly owned subsidiary of Aon plc, has established a U.S. commercial paper program and Aon plc has established a European multi-currency commercial paper program (collectively, the “CP Programs”). Commercial paper may be issued in aggregate principal amounts of up to $600 million under the U.S. program and €525 million under the European program, not to exceed the amount of the Company’s committed credit, which was $1.3 billion at June 30, 2019. The U.S. commercial paper program is fully and unconditionally guaranteed by Aon plc and the European multi-currency commercial paper program is fully and unconditionally guaranteed by Aon Corporation.
Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Company’s Condensed Consolidated Statements of Financial Position, is as follows (in millions):
As of
 
June 30, 2019
 
December 31, 2018
Commercial paper outstanding
 
$
843

 
$
250


The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Weighted average commercial paper outstanding
 
$
639

 
$
744

 
482

 
$
437

Weighted average interest rate of commercial paper outstanding
 
0.70
%
 
0.92
%
 
0.63
%
 
0.85
%

v3.19.2
Income Taxes
6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The effective tax rates on net income from continuing operations were 16.3% and 15.9% for the three and six months ended June 30, 2019, respectively. The effective tax rates on net income from continuing operations were 165.5% and (4.8)% for the three and six months ended June 30, 2018, respectively.
For the three and six months ended June 30, 2019, the tax rate was primarily driven by the geographical distribution of income, including restructuring charges, and certain favorable discrete items, primarily the impact of shared-based payments and changes in the assertion for unremitted earnings.
For the three and six months ended June 30, 2018, the tax rate was primarily driven by the geographical distribution of income including restructuring charges, legacy litigation, and the impairment charge related to certain assets and liabilities classified as held for sale. In addition, certain discrete items impacted the 2018 tax rate including the net tax benefit associated with the anticipated sale of certain assets and liabilities classified as held for sale, the impact of share-based payments, changes in uncertain tax positions and the deferred remeasurement related to the anticipated acceleration of contributions to the qualified U.S. pension plan.
v3.19.2
Shareholders' Equity
6 Months Ended
Jun. 30, 2019
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
Ordinary Shares
Aon has a share repurchase program authorized by the Company’s Board of Directors (the “Repurchase Program”). The Repurchase Program was established in April 2012 with $5.0 billion in authorized repurchases, and was increased by $5.0 billion in authorized repurchases in each of November 2014 and February 2017 for a total of $15.0 billion in repurchase authorizations.
Under the Repurchase Program, Class A Ordinary Shares may be repurchased through the open market or in privately negotiated transactions, from time to time, based on prevailing market conditions, and will be funded from available capital.
The following table summarizes the Company’s Share Repurchase activity (in millions, except per share data):
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2019
 
2018
 
2019
 
2018
Shares repurchased
5.8

 
2.8

 
6.4

 
6.7

Average price per share
$
183.23

 
$
141.23

 
$
181.07

 
$
141.06

Costs recorded to retained earnings:

 

 
 
 
 
Total repurchase cost
$
1,050

 
$
400

 
$
1,150

 
$
950

Additional associated costs
6

 
2

 
7

 
5

Total costs recorded to retained earnings
$
1,056

 
$
402

 
$
1,157

 
$
955


At June 30, 2019, the remaining authorized amount for share repurchase under the Repurchase Program was $2.8 billion. Under the Repurchase Program, the Company has repurchased a total of 124.6 million shares for an aggregate cost of approximately $12.2 billion.
Net Income Per Share
Weighted average ordinary shares outstanding are as follows (in millions):
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2019
 
2018
 
2019
 
2018
Basic weighted average ordinary shares outstanding
240.6

 
246.0

 
241.4

 
247.2

Dilutive effect of potentially issuable shares
2.2

 
1.4

 
1.8

 
1.6

Diluted weighted average ordinary shares outstanding
242.8

 
247.4

 
243.2

 
248.8


Potentially issuable shares are not included in the computation of diluted net income per share if its inclusion would be antidilutive. There were no shares excluded from the calculation for the three and six months ended June 30, 2019 and June 30, 2018.
Accumulated Other Comprehensive Loss
Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions):
 
Change in Fair Value of Financial Instruments (1) 
 
Foreign Currency Translation Adjustments
 
Postretirement Benefit Obligation (2)
 
Total
Balance at December 31, 2018
$
(15
)
 
$
(1,319
)
 
$
(2,575
)
 
$
(3,909
)
Other comprehensive income (loss) before reclassifications, net
(8
)
 
28

 
5

 
25

Amounts reclassified from accumulated other comprehensive income:
 
 


 


 


Amounts reclassified from accumulated other comprehensive income
8

 

 
52

 
60

Tax expense
(1
)
 

 
(12
)
 
(13
)
Amounts reclassified from accumulated other comprehensive income, net
7

 

 
40

 
47

Net current period other comprehensive income (loss)
(1
)
 
28

 
45

 
72

Balance at June 30, 2019
$
(16
)
 
$
(1,291
)
 
$
(2,530
)
 
$
(3,837
)
(1)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Revenue, Interest expense, and Compensation and benefits in the accompanying Condensed Consolidated Statements of Income. Refer to Note 15 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity.
(2)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense).
v3.19.2
Employee Benefits
6 Months Ended
Jun. 30, 2019
Retirement Benefits [Abstract]  
Employee Benefits Employee Benefits
The following table provides the components of the net periodic (benefit) cost recognized in the Condensed Consolidated Statements of Income for Aon’s significant U.K., U.S., and other international pension plans. Service cost is reported in Compensation and benefits and all other components are reported in Other income (expense) as follows (in millions):
 
Three Months Ended June 30
 
U.K.
 
U.S.
 
Other
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Service cost
$

 
$

 
$

 
$

 
$

 
$

Interest cost
27

 
29

 
27

 
25

 
7

 
7

Expected return on plan assets, net of administration expenses
(48
)
 
(50
)
 
(34
)
 
(36
)
 
(10
)
 
(11
)
Amortization of prior-service cost

 

 

 
1

 

 

Amortization of net actuarial loss
8

 
7

 
14

 
15

 
3

 
3

Net periodic (benefit) cost
(13
)
 
(14
)
 
7

 
5

 

 
(1
)
Loss on pension settlement

 
16

 

 

 

 

Total net periodic (benefit) cost
$
(13
)

$
2


$
7


$
5


$


$
(1
)

 
Six Months Ended June 30
 
U.K.
 
U.S.
 
Other
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Service cost
$

 
$

 
$

 
$

 
$

 
$

Interest cost
55

 
58

 
54

 
50

 
14

 
14

Expected return on plan assets, net of administration expenses
(97
)
 
(101
)
 
(68
)
 
(72
)
 
(20
)
 
(23
)
Amortization of prior-service cost
1

 

 
1

 
1

 

 

Amortization of net actuarial loss
15

 
15

 
27

 
30

 
6

 
6

Net periodic (benefit) cost
(26
)
 
(28
)
 
14

 
9

 

 
(3
)
Loss on pension settlement

 
23

 

 

 

 

Total net periodic (benefit) cost
$
(26
)
 
$
(5
)
 
$
14

 
$
9

 
$

 
$
(3
)
In March 2017, the Company approved a plan to offer a voluntary one-time lump sum payment option to certain eligible employees of the Company’s U.K. pension plans that, if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer closed during 2018. For the six months ended June 30, 2018, lump sum payments from plan assets of £99 million ($132 million using June 30, 2018 exchange rates) were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.K. pension plan during the second quarter of 2018, which in aggregate resulted in a reduction to the projected benefit obligation of £87 million ($115 million using June 30, 2018 exchange rates), as well as a non-cash settlement charge of £12 million ($16 million using average June 30, 2018 exchange rates) in the second quarter of 2018 and £17 million ($23 million using average exchange rates) for the six months ended June 30, 2018.
Contributions
The Company expects to make total cash contributions of approximately $80 million, $46 million, and $19 million, based on exchange rates as of December 31, 2018, to its significant U.K., U.S., and other significant international pension plans, respectively, during 2019. During the three months ended June 30, 2019, cash contributions of $23 million, $6 million, and $3 million were made to the Company’s significant U.K., U.S., and other significant international pension plans, respectively. During the six months ended June 30, 2019, cash contributions of $46 million, $23 million, and $10 million were made to the Company’s significant U.K., U.S., and other significant international pension plans, respectively.
During the three months ended June 30, 2018, cash contributions of $25 million, $8 million, and $3 million were made to the Company’s significant U.K., U.S., and other significant international pension plans, respectively. During the six months ended June 30, 2018, cash contributions of $48 million, $25 million, and $11 million were made to the Company’s significant U.K., U.S., and other significant international pension plans, respectively.
v3.19.2
Share-Based Compensation Plans
6 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Plans Share-Based Compensation Plans
The following table summarizes share-based compensation expense recognized in the Condensed Consolidated Statements of Income in Compensation and benefits (in millions):
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2019
 
2018
 
2019
 
2018
Restricted share units (“RSUs”)
$
50

 
$
46

 
$
113

 
$
104

Performance share awards (“PSAs”)
39

 
23

 
62

 
39

Employee share purchase plans
2

 
1

 
5

 
4

Total share-based compensation expense 
$
91

 
$
70

 
$
180

 
$
147


Restricted Share Units
RSUs generally vest between three and five years. The fair value of RSUs is based upon the market value of Aon plc ordinary shares at the date of grant. With certain limited exceptions, any break in continuous employment will cause the forfeiture of all non-vested awards. Compensation expense associated with RSUs is recognized on a straight-line basis over the requisite service period. Dividend equivalents are paid on certain RSUs, based on the initial grant amount.
The following table summarizes the status of the Company’s RSUs, including shares related to the Divested Business (shares in thousands, except fair value):
 
Six Months Ended June 30, 2019
 
Six Months Ended June 30, 2018
 
Shares
 
Fair Value (1) 
 
Shares
 
Fair Value (1) 
Non-vested at beginning of period
4,208

 
$
120

 
4,849

 
$
104

Granted
1,178

 
$
173

 
1,352

 
$
140

Vested
(1,451
)
 
$
113

 
(1,664
)
 
$
98

Forfeited
(97
)
 
$
124

 
(109
)
 
$
109

Non-vested at end of period
3,838

 
$
139

 
4,428

 
$
117


(1)
Represents per share weighted average fair value of award at date of grant.
Unamortized deferred compensation expense amounted to $426 million as of June 30, 2019, with a remaining weighted average amortization period of approximately 2.1 years.
Performance Share Awards
The vesting of PSAs is contingent upon meeting a cumulative level of earnings per share related performance over a three-year period. The actual issue of shares may range from 0-200% of the target number of PSAs granted, based on the terms of the plan and level of achievement of the related performance target. The grant date fair value of PSAs is based upon the market price of Aon plc ordinary shares at the date of grant. The performance conditions are not considered in the determination of the grant date fair value for these awards. Compensation expense is recognized over the performance period based on management’s estimate of the number of units expected to vest. Management evaluates its estimate of the actual number of shares expected to be issued at the end of the programs on a quarterly basis. The cumulative effect of the change in estimate is recognized in the period of change as an adjustment to Compensation and benefits in the Condensed Consolidated Statements of Income, if necessary. Dividend equivalents are not paid on PSAs.
The following table summarizes the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the six months ended June 30, 2019 and the years ended December 31, 2018 and 2017, respectively (shares in thousands and dollars in millions, except fair value):
 
June 30,
2019
 
December 31,
2018
 
December 31,
2017
Target PSAs granted during period
467

 
564

 
548

Weighted average fair value per share at date of grant
$
164

 
$
134

 
$
114

Number of shares that would be issued based on current performance levels
464

 
970

 
1,066

Unamortized expense, based on current performance levels
$
69

 
$
67

 
$
20


v3.19.2
Derivatives and Hedging
6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Derivatives and Hedging
The Company is exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, the Company enters into various derivative instruments that reduce these risks by creating offsetting exposures. The Company does not enter into derivative transactions for trading or speculative purposes.
Foreign Exchange Risk Management
The Company is exposed to foreign exchange risk when it earns revenues, pays expenses, enters into monetary intercompany transfers or other transactions denominated in a currency that differs from its functional currency. The Company uses foreign exchange derivatives, typically forward contracts, options and cross currency swaps, to reduce its overall exposure to the effects of currency fluctuations on cash flows. These exposures are hedged, on average, for less than 2 years. These derivatives are accounted for as hedges, and changes in fair value are recorded each period in Other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income.
The Company also uses foreign exchange derivatives, typically forward contracts and options, to economically hedge the currency exposure of the Company’s global liquidity profile, including monetary assets or liabilities that are denominated in a non-functional currency of an entity, typically on a rolling 30-day basis, but may be for up to 1 year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income (expense) in the Condensed Consolidated Statements of Income.
The notional and fair values of derivative instruments are as follows (in millions):
 
Notional Amount
 
Net Amount of Derivative Assets
 Presented in the Statements of Financial Position (1)
 
Net Amount of Derivative Liabilities
 Presented in the Statements of Financial Position (2)
 
June 30,
2019
 
December 31,
2018
 
June 30,
2019
 
December 31,
2018
 
June 30,
2019
 
December 31,
2018
Foreign exchange contracts:
 

 
 

 
 

 
 

 
 

 
 

Accounted for as hedges
$
588

 
$
646

 
$
14

 
$
17

 
$
1

 
$
2

Not accounted for as hedges (3)
285

 
269

 
5

 
1

 

 
6

Total
$
873

 
$
915

 
$
19

 
$
18

 
$
1

 
$
8

(1)
Included within Other current assets ($8 million at June 30, 2019 and $3 million at December 31, 2018) or Other non-current assets ($11 million at June 30, 2019 and $15 million at December 31, 2018).
(2)
Included within Other current liabilities ($1 million at June 30, 2019 and $5 million at December 31, 2018) or Other non-current liabilities ($3 million at December 31, 2018).
(3)
These contracts typically are for 30 day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date.
The amounts of derivative gains (losses) recognized in the Financial Statements are as follows (in millions):
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2019
 
2018
 
2019
 
2018
Loss recognized in Accumulated other comprehensive loss
$
(12
)
 
$
(25
)
 
$
(8
)
 
$
(11
)



The amounts of derivative gains (losses) reclassified from Accumulated other comprehensive loss into the Condensed Consolidated Statements of Income are as follows (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Revenue (1)
 
$
(3
)
 
$

 
$
(7
)
 
$

Compensation and benefits
 

 

 

 
1

Other general expenses
 

 
(1
)
 

 
(2
)
Interest expense
 

 

 
(1
)
 
(1
)
Other income (expense) (1)
 

 
(1
)
 

 
(4
)
Total
 
$
(3
)
 
$
(2
)
 
$
(8
)
 
$
(6
)

(1)
With the adoption of new hedge accounting guidance in the first quarter of 2019, gains (losses) on derivatives accounted for as hedges are recognized in Total revenue in the Company’s Condensed Consolidated Statements of Income rather than Other income (expense). Refer to Note 2 “Accounting Principles and Practices” for additional details.
The Company estimates that approximately $14 million of pretax losses currently included within Accumulated other comprehensive loss will be reclassified into earnings in the next twelve months.
During the three and six months ended June 30, 2019, the Company recorded losses of $9 million and $4 million, respectively, in Other income (expense) for foreign exchange derivatives not accounted for as hedges. During the three and six months ended June 30, 2018, the Company recorded losses of $20 million and $11 million, respectively, in Other income (expense) for foreign exchange derivatives not accounted for as hedges.
Net Investments in Foreign Operations Risk Management
The Company uses non-derivative financial instruments to protect the value of its investments in a number of foreign subsidiaries. The Company has designated a portion of its euro-denominated commercial paper issuances as a non-derivative hedge of the foreign currency exposure of a net investment in its European operations. The change in fair value of the designated portion of the euro-denominated commercial paper due to changes in foreign currency exchange rates is recorded in Foreign currency translation adjustment, a component of Accumulated other comprehensive loss, to the extent it is effective as a hedge. The foreign currency translation adjustment of the hedged net investments is also recorded in Accumulated other comprehensive loss. Ineffective portions of net investment hedges, if any, are reclassified from Accumulated other comprehensive loss into earnings during the period of change.
As of June 30, 2019, the Company has €500 million ($568 million at June 30, 2019 exchange rates) of outstanding euro-denominated commercial paper designated as a hedge of the foreign currency exposure of its net investment in its European operations. As of June 30, 2019, the unrealized gain recognized in Accumulated other comprehensive loss related to the net investment non derivative hedging instrument was $16 million.
The Company did not reclassify any deferred gains or losses related to net investment hedges from Accumulated other comprehensive loss to earnings during the three and six months ended June 30, 2019 and 2018.
v3.19.2
Fair Value Measurements and Financial Instruments
6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Financial Instruments Fair Value Measurements and Financial Instruments
Accounting standards establish a three tier fair value hierarchy that prioritizes the inputs used in measuring fair values as follows:
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.
The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments:
Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews treasury and government money market funds to obtain reasonable assurance that the fund net asset value is $1 per share, and reviews the floating net asset value of institutional prime money market funds for reasonableness. 
Equity investments consist of domestic and international equity securities and equity derivatives valued using the closing stock price on a national securities exchange. Over the counter equity derivatives are valued using observable inputs such as underlying prices of the underlying security and volatility. On a sample basis the Company reviews the listing of Level 1 equity securities in the portfolio and agrees the closing stock prices to a national securities exchange, and independently verifies the observable inputs for Level 2 equity derivatives and securities.
Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves, and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using discounted cash flow models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains an understanding of the models, inputs, and assumptions used in developing prices provided by its vendors through discussions with the fund managers. The Company independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on the Company’s guidelines, it is then reviewed by management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and historically are not material to the fair value estimates used in the Financial Statements.
Derivatives are carried at fair value, based upon industry standard valuation techniques that use, where possible, current market-based or independently sourced pricing inputs, such as interest rates, currency exchange rates, or implied volatilities.
Debt is carried at outstanding principal balance, less any unamortized issuance costs, discount or premium. Fair value is based on quoted market prices or estimates using discounted cash flow analyses based on current borrowing rates for similar types of borrowing arrangements.
The following tables present the categorization of the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 (in millions):
 
 
 
Fair Value Measurements Using
 
Balance at June 30, 2019
 
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)
$
2,356

 
$
2,356

 
$

 
$

Other investments:
 

 
 

 
 

 
 

Government bonds
$
1

 
$

 
$
1

 
$

Equity investments
$
1

 
$

 
$
1

 
$

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
21

 
$

 
$
21

 
$

Liabilities
 

 
 

 
 

 
 

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
3

 
$

 
$
3

 
$


 
 
 
Fair Value Measurements Using
 
Balance at December 31, 2018
 
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)
$
1,759

 
$
1,759

 
$

 
$

Other investments:
 

 
 

 
 

 
 

Government bonds
$
1

 
$

 
$
1

 
$

Equity investments
$
2

 
$

 
$
2

 
$

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
21

 
$

 
$
21

 
$

Liabilities
 

 
 

 
 

 
 

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
12

 
$

 
$
12

 
$

(1)
Included within Fiduciary assets or Short-term investments in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. 
(2)
Refer to Note 15 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. 
There were no transfers of assets or liabilities between fair value hierarchy levels in either the six months ended June 30, 2019 or 2018. The Company recognized no realized or unrealized gains or losses in the Condensed Consolidated Statements of Income during either the six months ended June 30, 2019 or 2018, related to assets and liabilities measured at fair value using unobservable inputs.
The fair value of debt is classified as Level 2 of the fair value hierarchy. The following table provides the carrying value and fair value for the Company’s term debt (in millions):
 
June 30, 2019
 
December 31, 2018
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt
$
6,740

 
$
7,356

 
$
5,993

 
$
6,159


v3.19.2
Claims, Lawsuits and Other Contingencies
6 Months Ended
Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Claims, Lawsuits and Other Contingencies Claims, Lawsuits, and Other Contingencies
Legal
Aon and its subsidiaries are subject to numerous claims, tax assessments, lawsuits and proceedings that arise in the ordinary course of business, which frequently include errors and omissions (“E&O”) claims. The damages claimed in these matters are or may be substantial, including, in many instances, claims for punitive, treble or extraordinary damages. While Aon maintains meaningful E&O insurance and other insurance programs to provide protection against certain losses that arise in such matters, Aon has exhausted or materially depleted its coverage under some of the policies that protect the Company and, consequently, is self-insured or materially self-insured for some claims. Accruals for these exposures, and related insurance receivables, when applicable, are included in the Condensed Consolidated Statements of Financial Position and have been recognized in Other general expenses in the Condensed Consolidated Statements of Income to the extent that losses are deemed probable and are reasonably estimable. These amounts are adjusted from time to time as developments warrant. Matters that are not probable and reasonably estimable are not accrued for in the financial statements.
The Company has included in the current matters described below certain matters in which (1) loss is probable, (2) loss is reasonably possible, that is, more than remote but not probable, or (3) there exists the reasonable possibility of loss greater than the accrued amount. In addition, the Company may from time to time disclose matters for which the probability of loss could be remote but the claim amounts associated with such matters are potentially significant. The reasonably possible range of loss for the matters described below for which loss is estimable, in excess of amounts that are deemed probable and estimable and therefore already accrued, is estimated to be between $0 and $0.1 billion, exclusive of any insurance coverage. These estimates are based on available information as of the date of this filing. As available information changes, the matters for which Aon is able to estimate may change, and the estimates themselves may change. In addition, many estimates involve significant judgment and uncertainty. For example, at the time of making an estimate, Aon may only have limited information about the facts underlying the claim, and predictions and assumptions about future court rulings and outcomes may prove to be inaccurate. Although management at present believes that the ultimate outcome of all matters described below, individually or in the aggregate, will not have a material adverse effect on the consolidated financial position of Aon, legal proceedings are subject to inherent uncertainties and unfavorable rulings
or other events. Unfavorable resolutions could include substantial monetary or punitive damages imposed on Aon or its subsidiaries. If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected.
Current Matters
A pensions consulting and administration subsidiary of Aon provided advisory services to the Trustees of the Gleeds pension fund in the United Kingdom and, on occasion, to the relevant employer of the fund.  In April 2014, the High Court, Chancery Division, London found that certain governing documents of the fund that sought to alter the fund’s benefit structure and that had been drafted by Aon were procedurally defective and therefore invalid.  No lawsuit naming Aon as a party was filed, although a tolling agreement was entered.  The High Court decision says that the additional liabilities in the pension fund resulting from the alleged defect in governing documents amount to approximately £45 million ($57 million at June 30, 2019 exchange rates). In December 2014, the Court of Appeal granted the employer leave to appeal the High Court decision. At a hearing in October 2016, the Court of Appeal approved a settlement of the pending litigation. On October 31, 2016, the fund’s trustees and employer sued Aon in the High Court, Chancery Division, London, alleging negligence and breach of duty in relation to the governing documents. The proceedings were served on Aon on December 20, 2016. The claimants seek damages of approximately £70 million ($89 million at June 30, 2019 exchange rates) plus interest and costs. In February 2018, the claimants instructed new lawyers and added their previous lawyers as defendants to the Aon lawsuit. Claimants have alleged that the previous lawyers were responsible for some of the losses sought from Aon because the lawyers gave negligent legal advice during the course of the High Court and Court of Appeal proceedings. Aon believes that it has meritorious defenses and intends to vigorously defend itself against this claim.
On October 3, 2017, Christchurch City Council (“CCC”) invoked arbitration to pursue a claim that it asserts against Aon New Zealand. Aon provided insurance broking services to CCC in relation to CCC’s 2010-2011 material damage and business interruption program. In December 2015, CCC settled its property and business interruption claim for its losses arising from the 2010-2011 Canterbury earthquakes against the underwriter of its material damage and business interruption program and the reinsurers of that underwriter. CCC contends that acts and omissions by Aon caused CCC to recover less in that settlement than it otherwise would have. CCC claims damages of approximately NZD 528 million ($353 million at June 30, 2019 exchange rates) plus interest and costs. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims.
A retail insurance brokerage subsidiary of Aon was sued on September 6, 2018 in the United States District Court for the Southern District of New York by a client, Pilkington North America, Inc., that sustained damage from a tornado to its Ottawa, Illinois property. The lawsuit seeks between $45 million and $85 million in property and business interruption damages from either its insurer or Aon. The insurer contends that insurance proceeds were limited to $15 million in coverage by a windstorm sub-limit purportedly contained in the policy procured by Aon for Pilkington. The insurer therefore has tendered $15 million to Pilkington and denied coverage for the remainder of the loss. Pilkington sued the insurer and Aon seeking full coverage for the loss from the insurer or, in the alternative, seeking the same damages against Aon on various theories of professional liability if the court finds that the $15 million sub-limit applies to the claim. Aon believes it has meritorious defenses and intends to vigorously defend itself against these claims.    
In April 2017, the FCA announced an investigation relating to suspected competition law breaches in the aviation and aerospace broking industry, which, for Aon in 2016, represented less than $100 million in global revenue. The European Commission has now assumed jurisdiction over the investigation in place of the FCA. Other antitrust agencies outside the European Union are also conducting formal or informal investigations regarding these matters. Aon intends to work diligently with all antitrust agencies concerned to ensure they can carry out their work as efficiently as possible. At this time, in light of the uncertainties and many variables involved, Aon cannot estimate the ultimate impact on our company from these investigations or any related private litigation, nor any damages, penalties, or fines related to them. There can be no assurance that the ultimate resolution of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity.
Settled/Closed Matters
On June 29, 2015, Lyttelton Port Company Limited (“LPC”) sued Aon New Zealand in the Christchurch Registry of the High Court of New Zealand. LPC alleges, among other things, that Aon was negligent and in breach of contract in arranging LPC’s property insurance program for the period covering June 30, 2010 to June 30, 2011. LPC contended that acts and omissions by Aon caused LPC to recover less than it otherwise would have from insurers for losses suffered in the 2010 and 2011 Canterbury earthquakes. LPC claimed damages of approximately NZD 184 million ($123 million at June 30, 2019 exchange rates) plus interest and costs. In April 2019, the case was settled with no admission of liability on the part of Aon. The terms of this settlement did not have a significant impact on Aon’s results of operations or financial condition.
Guarantees and Indemnifications
The Company provides a variety of guarantees and indemnifications to its customers and others. The maximum potential amount of future payments represents the notional amounts that could become payable under the guarantees and indemnifications if there were a total default by the guaranteed parties, without consideration of possible recoveries under recourse provisions or other methods. These amounts may bear no relationship to the expected future payments, if any, for these guarantees and indemnifications. Any anticipated amounts payable are included in the Company’s Financial Statements, and are recorded at fair value.
The Company expects that, as prudent business interests dictate, additional guarantees and indemnifications may be issued from time to time.
Redomestication
In connection with the Redomestication, the Company on April 2, 2012 entered into various agreements pursuant to which it agreed to guarantee the obligations of its subsidiaries arising under issued and outstanding debt securities. Those agreements included the (1) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc, and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) (amending and restating the Indenture, dated as of September 10, 2010, between Aon Corporation and the Trustee), (2) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and the Trustee (amending and restating the Indenture, dated as of December 16, 2002, between Aon Corporation and the Trustee), and (3) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and the Trustee (amending and restating the Indenture, dated as of January 13, 1997, as supplemented by the First Supplemental Indenture, dated as of January 13, 1997).
Sale of the Divested Business
In connection with the sale of the Divested Business, the Company guaranteed future operating lease commitments related to certain facilities assumed by the Buyer. The Company is obligated to perform under the guarantees if the Divested Business defaults on such leases at any time during the remainder of the lease agreements, which expire on various dates through 2025. As of June 30, 2019, the undiscounted maximum potential future payments under the lease guarantee is $77 million, with an estimated fair value of $15 million. No cash payments were made in connection to the lease commitments during the six months ended June 30, 2019.
Additionally, the Company is subject to performance guarantee requirements under certain client arrangements that were assumed by the Buyer. Should the Divested Business fail to perform as required by the terms of the arrangements, the Company would be required to fulfill the remaining contract terms, which expire on various dates through 2023. As of June 30, 2019, the undiscounted maximum potential future payments under the performance guarantees were $170 million, with an estimated fair value of $1 million. No cash payments were made in connection to the performance guarantees during the three and six months ended June 30, 2019.
Letters of Credit
Aon has entered into a number of arrangements whereby the Company’s performance on certain obligations is guaranteed by a third party through the issuance of letters of credit (“LOCs”). The Company had total LOCs outstanding of approximately $74 million at June 30, 2019, compared to $83 million at December 31, 2018. These LOCs cover the beneficiaries related to certain of Aon’s U.S. and Canadian non-qualified pension plan schemes and secure deductible retentions for Aon’s own workers compensation program. The Company has also obtained LOCs to cover contingent payments for taxes and other business obligations to third parties, and other guarantees for miscellaneous purposes at its international subsidiaries.
Premium Payments
The Company has certain contractual contingent guarantees for premium payments owed by clients to certain insurance companies. The maximum exposure with respect to such contractual contingent guarantees was approximately $102 million at June 30, 2019 compared to $103 million at December 31, 2018.
v3.19.2
Segment Information
6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company operates as one segment that includes all of Aon’s continuing operations, which as a global professional services firm provides advice and solutions to clients focused on risk, retirement, and health through five revenue lines which make up its principal products and services. The Chief Operating Decision Maker (the “CODM”) assesses the performance of the Company and allocates resources based on one segment: Aon United.
The Company’s reportable operating segment has been determined using a management approach, which is consistent with the basis and manner in which Aon’s CODM uses financial information for the purposes of allocating resources and evaluating performance. The CODM assesses performance and allocates resources based on total Aon results against its key four metrics,
including organic revenue growth, expense discipline, and collaborative behaviors that maximize value for Aon and its shareholders, regardless of which revenue line it benefits.
As Aon operates as one segment, segment profit or loss is consistent with consolidated reporting as disclosed on the Condensed Consolidated Statements of Income. Refer to Note 3 “Revenue from Contracts with Customers” for further information on revenue by principal service line.
v3.19.2
Guarantee of Registered Securities
6 Months Ended
Jun. 30, 2019
Guarantee of Registered Securities [Abstract]  
Guarantee of Registered Securities Guarantee of Registered Securities
As described in Note 17 “Claims, Lawsuits, and Other Contingencies,” in connection with the Redomestication, Aon plc entered into various agreements pursuant to which it agreed to guarantee the obligations of Aon Corporation arising under issued and outstanding debt securities, including the 5.00% Notes due September 2020, the 8.205% Notes due January 2027, and the 6.25% Notes due September 2040 (collectively, the “Aon Corporation Notes”). Additionally, Aon plc has guaranteed the obligations of Aon Corporation arising under the 4.50% Senior Notes due 2028 and the 3.75% Senior Notes due 2029. Aon Corporation is a 100% indirectly owned subsidiary of Aon plc. All guarantees of Aon plc are full and unconditional. There are no other subsidiaries of Aon plc that are guarantors of the Aon Corporation Notes.
In addition, Aon Corporation entered into an agreement pursuant to which it guaranteed the obligations of Aon plc arising under the 4.25% Notes due 2042 exchanged for Aon Corporation’s outstanding 8.205% Notes due January 2027, and has also guaranteed the obligations of Aon plc arising under the 4.45% Notes due 2043, the 4.00% Notes due November 2023, the 2.875% Notes due May 2026, the 3.50% Notes due June 2024, the 4.60% Notes due June 2044, the 4.75% Notes due May 2045, the 2.80% Notes due March 2021, and the 3.875% Notes due December 2025 (collectively, the “Aon plc Notes”). In each case, the guarantee of Aon Corporation is full and unconditional. There are no subsidiaries of Aon plc, other than Aon Corporation, that are guarantors of the Aon plc Notes. As a result of the existence of these guarantees, the Company has elected to present the financial information set forth in this footnote in accordance with Rule 3-10 of Regulation S-X.
In the fourth quarter of 2018, Aon plc obtained direct ownership in two subsidiaries that were previously indirectly owned by Aon Corporation. In the first quarter of 2019, Aon Corporation obtained indirect ownership of subsidiaries that were previously indirectly owned by Aon plc. The financial results of these subsidiaries are included in the Other Non-Guarantor Subsidiaries column of the Condensed Consolidating Financial Statements. The Company has retrospectively reflected the impact of these transactions on the Condensed Consolidating Statements of Income and Condensed Consolidating Statements of Comprehensive Income for the periods ended June 30, 2018 and the Condensed Consolidated Statement of Financial Position as of December 31, 2018.
The following tables set forth Condensed Consolidating Statements of Income and Condensed Consolidating Statements of Comprehensive Income for the three and six months ended June 30, 2019 and 2018, Condensed Consolidating Statements of Financial Position as of June 30, 2019 and December 31, 2018, and Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2019 and 2018 in accordance with Rule 3-10 of Regulation S-X. The Condensed Consolidating Financial Information includes the accounts of Aon plc, the accounts of Aon Corporation, and the combined accounts of the Other Non-Guarantor Subsidiaries. The Condensed Consolidating Financial Statements are presented in all periods as a merger under common control. The principal consolidating adjustments are to eliminate the investment in subsidiaries and intercompany balances and transactions.
Condensed Consolidating Statement of Income
 
 
Three Months Ended June 30, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$
2,606

 
$

 
$
2,606

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
22

 
4

 
1,475

 

 
1,501

Information technology
 

 

 
126

 

 
126

Premises
 

 
9

 
76

 

 
85

Depreciation of fixed assets
 

 

 
40

 

 
40

Amortization and impairment of intangible assets
 

 

 
97

 

 
97

Other general expenses
 
3

 
6

 
335

 

 
344

Total operating expenses
 
25

 
19

 
2,149

 

 
2,193

Operating income (loss)
 
(25
)
 
(19
)
 
457

 

 
413

Interest income
 

 
9

 

 
(8
)
 
1

Interest expense
 
(45
)
 
(34
)
 
(6
)
 
8

 
(77
)
Intercompany interest income (expense)
 
3

 
(116
)
 
113

 

 

Intercompany other income (expense)
 
137

 
(164
)
 
27

 

 

Other income (expense)
 
(11
)
 
(14
)
 
24

 
7

 
6

Income (loss) from continuing operations before income taxes
 
59

 
(338
)
 
615

 
7

 
343

Income tax expense (benefit)
 

 
(64
)
 
120

 

 
56

Net income (loss) from continuing operations
 
59

 
(274
)
 
495

 
7

 
287

Net income from discontinued operations
 

 

 

 

 

Net income (loss) before equity in earnings of subsidiaries
 
59

 
(274
)
 
495

 
7

 
287

Equity in earnings of subsidiaries
 
211

 
301

 
27

 
(539
)
 

Net income
 
270

 
27

 
522

 
(532
)
 
287

Less: Net income attributable to noncontrolling interests
 

 

 
10

 

 
10

Net income attributable to Aon shareholders
 
$
270

 
$
27

 
$
512

 
$
(532
)
 
$
277

Condensed Consolidating Statement of Income
 
 
Three Months Ended June 30, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$
2,561

 
$

 
$
2,561

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
15

 
1

 
1,478

 

 
1,494

Information technology
 

 

 
123

 

 
123

Premises
 

 

 
96

 

 
96

Depreciation of fixed assets
 

 

 
47

 

 
47

Amortization and impairment of intangible assets
 

 

 
282

 

 
282

Other general expenses
 
2

 
91

 
442

 

 
535

Total operating expenses
 
17

 
92

 
2,468

 

 
2,577

Operating income (loss)
 
(17
)
 
(92
)
 
93

 

 
(16
)
Interest income
 

 
15

 

 
(14
)
 
1

Interest expense
 
(48
)
 
(25
)
 
(10
)
 
14

 
(69
)
Intercompany interest income (expense)
 
3

 
(129
)
 
126

 

 

Intercompany other income (expense)
 
(93
)
 
10

 
83

 

 

Other income (expense)
 
48

 
(20
)
 
(13
)
 
(18
)
 
(3
)
Income (loss) from continuing operations before income taxes
 
(107
)
 
(241
)
 
279

 
(18
)
 
(87
)
Income tax expense (benefit)
 
(3
)
 
(50
)
 
(91
)
 

 
(144
)
Net income (loss) from continuing operations
 
(104
)
 
(191
)
 
370

 
(18
)
 
57

Net income from discontinued operations
 

 

 
1

 

 
1

Net income (loss) before equity in earnings of subsidiaries
 
(104
)
 
(191
)
 
371

 
(18
)
 
58

Equity in earnings of subsidiaries
 
170

 
207

 
16

 
(393
)
 

Net income
 
66

 
16

 
387

 
(411
)
 
58

Less: Net income attributable to noncontrolling interests
 

 

 
10

 

 
10

Net income attributable to Aon shareholders
 
$
66

 
$
16

 
$
377

 
$
(411
)
 
$
48




Condensed Consolidating Statement of Income
 
 
Six Months Ended June 30, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$
5,749

 
$

 
$
5,749

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
42

 
12

 
3,031

 

 
3,085

Information technology
 

 

 
243

 

 
243

Premises
 

 
13

 
159

 

 
172

Depreciation of fixed assets
 

 

 
80

 

 
80

Amortization and impairment of intangible assets
 

 

 
194

 

 
194

Other general expenses
 
3

 
2

 
685

 

 
690

Total operating expenses
 
45

 
27

 
4,392

 

 
4,464

Operating income (loss)
 
(45
)
 
(27
)
 
1,357

 

 
1,285

Interest income
 

 
18

 

 
(15
)
 
3

Interest expense
 
(91
)
 
(62
)
 
(11
)
 
15

 
(149
)
Intercompany interest income (expense)
 
7

 
(232
)
 
225

 

 

Intercompany other income (expense)
 
168

 
(263
)
 
95

 

 

Other income (expense)
 
(6
)
 
(25
)
 
32

 
5

 
6

Income (loss) from continuing operations before income taxes
 
33

 
(591
)
 
1,698

 
5

 
1,145

Income tax expense (benefit)
 
(5
)
 
(106
)
 
293

 

 
182

Net income (loss) from continuing operations
 
38

 
(485
)
 
1,405

 
5

 
963

Net income from discontinued operations
 

 

 

 

 

Net income (loss) before equity in earnings of subsidiaries
 
38

 
(485
)
 
1,405

 
5

 
963

Equity in earnings of subsidiaries
 
893

 
1,025

 
540

 
(2,458
)
 

Net income
 
931

 
540

 
1,945

 
(2,453
)
 
963

Less: Net income attributable to noncontrolling interests
 

 

 
27

 

 
27

Net income attributable to Aon shareholders
 
$
931

 
$
540

 
$
1,918

 
$
(2,453
)
 
$
936

Condensed Consolidating Statement of Income
 
 
Six Months Ended June 30, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$
5,651

 
$

 
$
5,651

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
34

 
2

 
3,074

 

 
3,110

Information technology
 

 

 
238

 

 
238

Premises
 

 

 
189

 

 
189

Depreciation of fixed assets
 

 

 
86

 

 
86

Amortization and impairment of intangible assets
 

 

 
392

 

 
392

Other general expenses
 
3

 
91

 
759

 

 
853

Total operating expenses
 
37

 
93

 
4,738

 

 
4,868

Operating income (loss)
 
(37
)
 
(93
)
 
913

 

 
783

Interest income
 

 
29

 

 
(24
)
 
5

Interest expense
 
(97
)
 
(49
)
 
(17
)
 
24

 
(139
)
Intercompany interest income (expense)
 
7

 
(257
)
 
250

 

 

Intercompany other income (expense)
 
(146
)
 
5

 
141

 

 

Other income (expense)
 
23

 
(26
)
 

 
(15
)
 
(18
)
Income (loss) from continuing operations before income taxes
 
(250
)
 
(391
)
 
1,287

 
(15
)
 
631

Income tax expense (benefit)
 
(19
)
 
(77
)
 
66

 

 
(30
)
Net income (loss) from continuing operations
 
(231
)
 
(314
)
 
1,221

 
(15
)
 
661

Net income from discontinued operations
 

 

 
7

 

 
7

Net income (loss) before equity in earnings of subsidiaries
 
(231
)
 
(314
)
 
1,228

 
(15
)
 
668

Equity in earnings of subsidiaries
 
888

 
912

 
598

 
(2,398
)
 

Net income
 
657

 
598

 
1,826

 
(2,413
)
 
668

Less: Net income attributable to noncontrolling interests
 

 

 
26

 

 
26

Net income attributable to Aon shareholders
 
$
657

 
$
598

 
$
1,800

 
$
(2,413
)
 
$
642



Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended June 30, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
270

 
$
27

 
$
522

 
$
(532
)
 
$
287

Less: Net income attributable to noncontrolling interests
 

 

 
10

 

 
10

Net income attributable to Aon shareholders
 
270

 
27

 
512

 
(532
)
 
277

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of financial instruments
 

 

 
(8
)
 

 
(8
)
Foreign currency translation adjustments
 

 

 
(96
)
 
(7
)
 
(103
)
Postretirement benefit obligation
 

 
10

 
4

 

 
14

Total other comprehensive income (loss)
 

 
10

 
(100
)
 
(7
)
 
(97
)
Equity in other comprehensive income (loss) of subsidiaries, net of tax
 
(90
)
 
(118
)
 
(108
)
 
316

 

Less: Other comprehensive income (loss) attributable to noncontrolling interests
 

 

 

 

 

Total other comprehensive income (loss) attributable to Aon shareholders
 
(90
)
 
(108
)
 
(208
)
 
309

 
(97
)
Comprehensive income attributable (loss) to Aon shareholders
 
$
180

 
$
(81
)
 
$
304

 
$
(223
)
 
$
180

Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended June 30, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
66

 
$
16

 
$
387

 
$
(411
)
 
$
58

Less: Net income attributable to noncontrolling interests
 

 

 
10

 

 
10

Net income attributable to Aon shareholders
 
66

 
16

 
377

 
(411
)
 
48

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of financial instruments
 

 
(4
)
 
3

 

 
(1
)
Foreign currency translation adjustments
 

 

 
(478
)
 
18

 
(460
)
Postretirement benefit obligation
 

 
11

 
111

 

 
122

Total other comprehensive income (loss)
 

 
7

 
(364
)
 
18

 
(339
)
Equity in other comprehensive income (loss) of subsidiaries, net of tax
 
(351
)
 
(345
)
 
(338
)
 
1,034

 

Less: Other comprehensive income (loss) attributable to noncontrolling interests
 

 

 
(6
)
 

 
(6
)
Total other comprehensive income (loss) attributable to Aon shareholders
 
(351
)
 
(338
)
 
(696
)
 
1,052

 
(333
)
Comprehensive income attributable (loss) to Aon shareholders
 
$
(285
)
 
$
(322
)
 
$
(319
)
 
$
641

 
$
(285
)

Condensed Consolidating Statement of Comprehensive Income
 
 
Six Months Ended June 30, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
931

 
$
540

 
$
1,945

 
$
(2,453
)
 
$
963

Less: Net income attributable to noncontrolling interests
 

 

 
27

 

 
27

Net income attributable to Aon shareholders
 
931

 
540

 
1,918

 
(2,453
)
 
936

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of financial instruments
 

 
2

 
(3
)
 

 
(1
)
Foreign currency translation adjustments
 

 

 
35

 
(5
)
 
30

Postretirement benefit obligation
 

 
32

 
13

 

 
45

Total other comprehensive income (loss)
 

 
34

 
45

 
(5
)
 
74

Equity in other comprehensive income (loss) of subsidiaries, net of tax
 
77

 
(3
)
 
31

 
(105
)
 

Less: Other comprehensive income (loss) attributable to noncontrolling interests
 

 

 
2

 

 
2

Total other comprehensive income (loss) attributable to Aon shareholders
 
77

 
31

 
74

 
(110
)
 
72

Comprehensive income attributable (loss) to Aon shareholders
 
$
1,008

 
$
571

 
$
1,992

 
$
(2,563
)
 
$
1,008

Condensed Consolidating Statement of Comprehensive Income
 
 
Six Months Ended June 30, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
657

 
$
598

 
$
1,826

 
$
(2,413
)
 
$
668

Less: Net income attributable to noncontrolling interests
 

 

 
26

 

 
26

Net income attributable to Aon shareholders
 
657

 
598

 
1,800

 
(2,413
)
 
642

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of financial instruments
 

 
(1
)
 
14

 

 
13

Foreign currency translation adjustments
 

 

 
(228
)
 
15

 
(213
)
Postretirement benefit obligation
 

 
22

 
148

 

 
170

Total other comprehensive income (loss)
 

 
21

 
(66
)
 
15

 
(30
)
Equity in other comprehensive income (loss) of subsidiaries, net of tax
 
(42
)
 
(60
)
 
(39
)
 
141

 

Less: Other comprehensive income (loss) attributable to noncontrolling interests
 

 

 
(3
)
 

 
(3
)
Total other comprehensive income (loss) attributable to Aon shareholders
 
(42
)
 
(39
)
 
(102
)
 
156

 
(27
)
Comprehensive income attributable (loss) to Aon shareholders
 
$
615

 
$
559

 
$
1,698

 
$
(2,257
)
 
$
615


Condensed Consolidating Statement of Financial Position
 
 
As of June 30, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Assets
 
 

 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
1,371

 
$
537

 
$
(1,327
)
 
$
581

Short-term investments
 

 
125

 
110

 

 
235

Receivables, net
 

 

 
3,227

 

 
3,227

Fiduciary assets
 

 

 
12,071

 

 
12,071

Current intercompany receivables
 
167

 
3,421

 
12,843

 
(16,431
)
 

Other current assets
 

 
10

 
621

 

 
631

Total current assets
 
167

 
4,927

 
29,409

 
(17,758
)
 
16,745

Goodwill
 

 

 
8,198

 

 
8,198

Intangible assets, net
 

 

 
973

 

 
973

Fixed assets, net
 

 

 
599

 

 
599

Operating lease right-of-use assets
 

 
112

 
847

 

 
959

Deferred tax assets
 
93

 
498

 
150

 
(142
)
 
599

Prepaid pension
 

 
5

 
1,208

 

 
1,213

Non-current intercompany receivables
 
404

 
261

 
7,200

 
(7,865
)
 

Other non-current assets
 
1

 
28

 
492

 

 
521

Investment in subsidiary
 
8,937

 
20,147

 
(424
)
 
(28,660
)
 

Total assets
 
$
9,602

 
$
25,978

 
$
48,652

 
$
(54,425
)
 
$
29,807

 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 

 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$
582

 
$
57

 
$
2,057

 
$
(1,327
)
 
$
1,369

Short-term debt and current portion of long-term debt
 
569

 
275

 

 

 
844

Fiduciary liabilities
 

 

 
12,071

 

 
12,071

Current intercompany payables
 
378

 
14,633

 
1,420

 
(16,431
)
 

Other current liabilities
 

 
78

 
1,119

 

 
1,197

Total current liabilities
 
1,529

 
15,043

 
16,667

 
(17,758
)
 
15,481

Long-term debt
 
4,234

 
2,506

 

 

 
6,740

Non-current operating lease liabilities
 

 
149

 
813

 

 
962

Deferred tax liabilities
 

 

 
353

 
(142
)
 
211

Pension, other postretirement, and postemployment liabilities
 

 
1,232

 
344

 

 
1,576

Non-current intercompany payables
 

 
7,366

 
499

 
(7,865
)
 

Other non-current liabilities
 
3

 
106

 
815

 

 
924

Total liabilities
 
5,766

 
26,402

 
19,491

 
(25,765
)
 
25,894

 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
3,836

 
(424
)
 
29,084

 
(28,660
)
 
3,836

Noncontrolling interests
 

 

 
77

 

 
77

Total equity
 
3,836

 
(424
)
 
29,161

 
(28,660
)
 
3,913

Total liabilities and equity
 
$
9,602

 
$
25,978

 
$
48,652

 
$
(54,425
)
 
$
29,807

Condensed Consolidating Statement of Financial Position
 
 
As of December 31, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Assets
 
 

 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
862

 
$
575

 
$
(781
)
 
$
656

Short-term investments
 

 
56

 
116

 

 
172

Receivables, net
 

 

 
2,760

 

 
2,760

Fiduciary assets
 

 

 
10,166

 

 
10,166

Current intercompany receivables
 
191

 
897

 
11,634

 
(12,722
)
 

Other current assets
 

 
16

 
602

 

 
618

Total current assets
 
191

 
1,831

 
25,853

 
(13,503
)
 
14,372

Goodwill
 

 

 
8,171

 

 
8,171

Intangible assets, net
 

 

 
1,149

 

 
1,149

Fixed assets, net
 

 

 
588

 

 
588

Operating lease right-of-use assets
 

 

 

 

 

Deferred tax assets
 
94

 
467

 
144

 
(144
)
 
561

Prepaid pension
 

 
5

 
1,128

 

 
1,133

Non-current intercompany receivables
 
403

 
261

 
7,225

 
(7,889
)
 

Other non-current assets
 
1

 
30

 
417

 

 
448

Investment in subsidiary
 
8,433

 
19,132

 
(882
)
 
(26,683
)
 

Total assets
 
$
9,122

 
$
21,726

 
$
43,793

 
$
(48,219
)
 
$
26,422

 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 

 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$
274

 
$
70

 
$
2,380

 
$
(781
)
 
$
1,943

Short-term debt and current portion of long-term debt
 
250

 

 
1

 

 
251

Fiduciary liabilities
 

 

 
10,166

 

 
10,166

Current intercompany payables
 
213

 
11,875

 
634

 
(12,722
)
 

Other current liabilities
 

 
69

 
867

 

 
936

Total current liabilities
 
737

 
12,014

 
14,048

 
(13,503
)
 
13,296

Long-term debt
 
4,231

 
1,762

 

 

 
5,993

Non-current operating lease liabilities
 

 

 

 

 

Deferred tax liabilities
 

 

 
325

 
(144
)
 
181

Pension, other postretirement, and postemployment liabilities
 

 
1,275

 
361

 

 
1,636

Non-current intercompany payables
 

 
7,390

 
499

 
(7,889
)
 

Other non-current liabilities
 
3

 
167

 
927

 

 
1,097

Total liabilities
 
4,971

 
22,608

 
16,160

 
(21,536
)
 
22,203

 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
4,151

 
(882
)
 
27,565

 
(26,683
)
 
4,151

Noncontrolling interests
 

 

 
68

 

 
68

Total equity
 
4,151

 
(882
)
 
27,633

 
(26,683
)
 
4,219

Total liabilities and equity
 
$
9,122

 
$
21,726

 
$
43,793

 
$
(48,219
)
 
$
26,422


Condensed Consolidating Statement of Cash Flows
 
 
Six Months Ended June 30, 2019
(millions)
 
Aon plc
 
Aon
Corporation
 
Other
Non-Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$
366

 
$
(110
)
 
$
690

 
$
(585
)
 
$
361

 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 
9

 
5

 

 
14

Payments for investments
 

 
(19
)
 
(41
)
 

 
(60
)
Net sales (purchases) of short-term investments - non-fiduciary
 

 
(69
)
 
7

 

 
(62
)
Acquisition of businesses, net of cash acquired
 

 

 
(15
)
 

 
(15
)
Sale of businesses, net of cash sold
 

 

 
7

 

 
7

Capital expenditures
 

 

 
(106
)
 

 
(106
)
Cash provided by (used for) investing activities
 

 
(79
)
 
(143
)
 

 
(222
)
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(1,155
)
 

 

 

 
(1,155
)
Advances from (to) affiliates
 
823

 
(320
)
 
(542
)
 
39

 

Issuance of shares for employee benefit plans
 
(144
)
 

 

 

 
(144
)
Issuance of debt
 
1,219

 
2,340

 

 

 
3,559

Repayment of debt
 
(906
)
 
(1,322
)
 

 

 
(2,228
)
Cash dividends to shareholders
 
(203
)
 

 

 

 
(203
)
Noncontrolling interests and other financing activities
 

 

 
(61
)
 

 
(61
)
Cash provided by (used for) financing activities
 
(366
)
 
698

 
(603
)
 
39

 
(232
)
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 

 

 
18

 

 
18

Net increase (decrease) in cash and cash equivalents
 

 
509

 
(38
)
 
(546
)
 
(75
)
Cash and cash equivalents at beginning of period
 

 
862

 
575

 
(781
)
 
656

Cash and cash equivalents at end of period
 
$

 
$
1,371

 
$
537

 
$
(1,327
)
 
$
581


Condensed Consolidating Statement of Cash Flows
 
 
Six Months Ended June 30, 2018
(millions)
 
Aon plc
 
Aon
Corporation
 
Other
Non-Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$
(126
)
 
$
582

 
$
759

 
$
(802
)
 
$
413

 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 
13

 
10

 

 
23

Payments for investments
 
(12
)
 
(17
)
 
(19
)
 
12

 
(36
)
Net sales (purchases) of short-term investments - non-fiduciary
 

 
296

 
56

 

 
352

Acquisition of businesses, net of cash acquired
 

 

 
(50
)
 

 
(50
)
Sale of businesses, net of cash sold
 

 

 
1

 

 
1

Capital expenditures
 

 

 
(111
)
 

 
(111
)
Cash provided by (used for) investing activities
 
(12
)
 
292

 
(113
)
 
12

 
179

 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(971
)
 

 

 

 
(971
)
Advances from (to) affiliates
 
965

 
(810
)
 
(395
)
 
240

 

Issuance of shares for employee benefit plans
 
(150
)
 

 

 

 
(150
)
Issuance of debt
 
752

 
1,800

 

 

 
2,552

Repayment of debt
 
(272
)
 
(1,461
)
 
(294
)
 

 
(2,027
)
Cash dividends to shareholders
 
(187
)
 

 

 

 
(187
)
Noncontrolling interests and other financing activities
 

 

 
(15
)
 

 
(15
)
Cash provided by (used for) financing activities
 
137

 
(471
)
 
(704
)
 
240

 
(798
)
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 

 

 
(63
)
 

 
(63
)
Net increase (decrease) in cash and cash equivalents
 
(1
)
 
403

 
(121
)
 
(550
)
 
(269
)
Cash and cash equivalents at beginning of period
 
1

 
2,524

 
793

 
(2,562
)
 
756

Cash and cash equivalents at end of period
 
$

 
$
2,927

 
$
672

 
$
(3,112
)
 
$
487


v3.19.2
Lease Commitments
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Lease Commitments Lease Commitments
The Company leases office facilities, equipment, and automobiles under non-cancelable operating and finance leases. The Company’s lease obligations are primarily for the use of office space. The Company evaluates if a leasing arrangement exists upon inception of a contract. A contract contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Identified property, plant, or equipment may include a physically distinct portion of a larger asset, or a portion of an asset that represents substantially all of the capacity of the asset but is not physically distinct. The Company assesses whether a contract implicitly contains the right to control the use of a tangible asset that is not already owned. In addition, the Company subleases certain real estate properties to third parties, which consist of operating leases.
The Company’s leases expire at various dates and may contain renewal and expansion options. The exercise of lease renewal and expansion options are at the Company’s sole discretion and are only included in the determination of the lease term if the Company is reasonably certain to exercise the option. The Company’s leases do not typically contain termination options. In addition, the Company’s lease agreements typically do not contain any material residual value guarantees or restrictive covenants.
ROU assets and lease liabilities are based on the present value of the minimum lease payments over the lease term. As stated in Note 2 “Accounting Principles and Practices”, the Company has elected the practical expedient related to lease and non-lease components, as an accounting policy election for all asset classes, which allows a lessee to not separate non-lease from lease components and instead account for consideration received in a contract as a single lease component.
A portion of the Company’s lease agreements include variable lease payments that are not recorded in the initial measurement of the lease liability and ROU asset balances. For real estate arrangements, base rental payments may be escalated according to annual changes in the Consumer Price Index (“CPI”) or other indices. The escalated rental payments based on the estimated CPI at the lease commencement date are included within minimum rental payments; however, changes in CPI are considered variable in nature and are recognized as variable lease costs in the period in which the obligation is incurred. Additionally, real estate lease agreements may include other variable payments related to operating expenses charged by the landlord based on actual expenditures. Information technology equipment agreements may include variable payments based on usage of the equipment.
The Company utilizes discount rates to determine the present value of the lease payments based on information available at the commencement date of the lease. The Company uses an incremental borrowing rate based on factors such as the lease term and the economic environment where the lease exists to determine the appropriate present value of future lease payments as the rate implicit in the lease is not always readily available. When determining the incremental borrowing rate, the Company considers the rate of interest it would pay on a secured borrowing in an amount equal to the lease payments for the underlying asset under similar terms.
Operating leases are included in Operating lease right-of-use assets, Other current liabilities, and Non-current operating lease liabilities on the Condensed Consolidated Statements of Financial Position. Finance leases are included in Other non-current assets, Other current liabilities, and Other non-current liabilities on the Condensed Consolidated Statements of Financial Position.
The classification of operating and finance lease asset and liability balances within the Condensed Consolidated Statements of Financial Position is as follows (in millions):
As of
 
June 30, 2019
Assets
 
 
Operating lease assets
Operating lease right-of-use assets
$
959

Finance lease assets
Other non-current assets
65

Total lease assets
 
$
1,024

 
 
 
Liabilities
 
 
Current lease liabilities
 
 
   Operating
Other current liabilities
$
199

   Finance
Other current liabilities
27

Non-current lease liabilities
 
 
   Operating
Non-current operating lease liabilities
962

   Finance
Other non-current liabilities
37

Total lease liabilities
 
$
1,225




The components of lease costs are as follows (in millions):
 
Three Months Ended June 30, 2019
 
Six Months Ended June 30, 2019
Operating lease cost
$
65

 
$
133

Finance lease costs
 
 
 
   Amortization of leased assets
6

 
13

   Interest on lease liabilities

 
1

Variable lease cost
12

 
18

Short-term lease cost (1)
1

 
2

Sublease income
(8
)
 
(16
)
Net lease cost
$
76

 
$
151

(1) Short-term lease cost does not include expenses related to leases with a lease term of one month or less.

Weighted average remaining lease term and discount rate related to operating and finance leases are as follows:
As of
June 30,
 2019
Weighted average remaining lease term (years)
 
   Operating leases
8.0

   Finance leases
2.5

Weighted average discount rate
 
   Operating leases
3.3
%
   Finance leases
2.4
%

Other cash and non-cash related activities are as follows (in millions):
 
Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
 
   Operating cash flows for operating leases
$
116

Non-cash related activities
 
ROU assets obtained in exchange for new operating lease liabilities
$
50



The Company has recorded non-cash changes in Operating lease ROU assets and Non-current operating lease liabilities through Other assets and liabilities in cash flows from operations within the Condensed Consolidated Statements of Cash Flows. Non-cash ROU asset lease expense was $68 million and the change in Non-current operating lease liabilities was a decrease of $52 million for the six months ended June 30, 2019.

Maturity analysis of operating and finance leases as of June 30, 2019 are as follows (in millions):
 
Operating
 
Finance
 
Less:
 
 
 
Leases
 
Leases
 
Subleases
 
Total
Remainder of 2019
$
127

 
$
14

 
$
(17
)
 
$
124

2020
248

 
28

 
(34
)
 
242

2021
224

 
22

 
(33
)
 
213

2022
198

 
2

 
(34
)
 
166

2023
144

 

 
(15
)
 
129

Thereafter
511

 

 
(8
)
 
503

Total undiscounted future minimum lease payments
$
1,452

 
$
66

 
$
(141
)
 
$
1,377

Less: Imputed interest
(151
)
 
(1
)
 

 
(152
)
Present value of lease liabilities
$
1,301

 
$
65

 
$
(141
)
 
$
1,225

At December 31, 2018, future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows (in millions):
Year Ended December 31, 2018
Gross rental commitments
 
Rentals from subleases
 
Net rental commitments
2019
$
303

 
$
(34
)
 
$
269

2020
253

 
(30
)
 
223

2021
221

 
(30
)
 
191

2022
182

 
(30
)
 
152

2023
148

 
(12
)
 
136

Thereafter
472

 
(5
)
 
467

Total minimum payments required
$
1,579

 
$
(141
)
 
$
1,438


Lease Commitments Lease Commitments
The Company leases office facilities, equipment, and automobiles under non-cancelable operating and finance leases. The Company’s lease obligations are primarily for the use of office space. The Company evaluates if a leasing arrangement exists upon inception of a contract. A contract contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Identified property, plant, or equipment may include a physically distinct portion of a larger asset, or a portion of an asset that represents substantially all of the capacity of the asset but is not physically distinct. The Company assesses whether a contract implicitly contains the right to control the use of a tangible asset that is not already owned. In addition, the Company subleases certain real estate properties to third parties, which consist of operating leases.
The Company’s leases expire at various dates and may contain renewal and expansion options. The exercise of lease renewal and expansion options are at the Company’s sole discretion and are only included in the determination of the lease term if the Company is reasonably certain to exercise the option. The Company’s leases do not typically contain termination options. In addition, the Company’s lease agreements typically do not contain any material residual value guarantees or restrictive covenants.
ROU assets and lease liabilities are based on the present value of the minimum lease payments over the lease term. As stated in Note 2 “Accounting Principles and Practices”, the Company has elected the practical expedient related to lease and non-lease components, as an accounting policy election for all asset classes, which allows a lessee to not separate non-lease from lease components and instead account for consideration received in a contract as a single lease component.
A portion of the Company’s lease agreements include variable lease payments that are not recorded in the initial measurement of the lease liability and ROU asset balances. For real estate arrangements, base rental payments may be escalated according to annual changes in the Consumer Price Index (“CPI”) or other indices. The escalated rental payments based on the estimated CPI at the lease commencement date are included within minimum rental payments; however, changes in CPI are considered variable in nature and are recognized as variable lease costs in the period in which the obligation is incurred. Additionally, real estate lease agreements may include other variable payments related to operating expenses charged by the landlord based on actual expenditures. Information technology equipment agreements may include variable payments based on usage of the equipment.
The Company utilizes discount rates to determine the present value of the lease payments based on information available at the commencement date of the lease. The Company uses an incremental borrowing rate based on factors such as the lease term and the economic environment where the lease exists to determine the appropriate present value of future lease payments as the rate implicit in the lease is not always readily available. When determining the incremental borrowing rate, the Company considers the rate of interest it would pay on a secured borrowing in an amount equal to the lease payments for the underlying asset under similar terms.
Operating leases are included in Operating lease right-of-use assets, Other current liabilities, and Non-current operating lease liabilities on the Condensed Consolidated Statements of Financial Position. Finance leases are included in Other non-current assets, Other current liabilities, and Other non-current liabilities on the Condensed Consolidated Statements of Financial Position.
The classification of operating and finance lease asset and liability balances within the Condensed Consolidated Statements of Financial Position is as follows (in millions):
As of
 
June 30, 2019
Assets
 
 
Operating lease assets
Operating lease right-of-use assets
$
959

Finance lease assets
Other non-current assets
65

Total lease assets
 
$
1,024

 
 
 
Liabilities
 
 
Current lease liabilities
 
 
   Operating
Other current liabilities
$
199

   Finance
Other current liabilities
27

Non-current lease liabilities
 
 
   Operating
Non-current operating lease liabilities
962

   Finance
Other non-current liabilities
37

Total lease liabilities
 
$
1,225




The components of lease costs are as follows (in millions):
 
Three Months Ended June 30, 2019
 
Six Months Ended June 30, 2019
Operating lease cost
$
65

 
$
133

Finance lease costs
 
 
 
   Amortization of leased assets
6

 
13

   Interest on lease liabilities

 
1

Variable lease cost
12

 
18

Short-term lease cost (1)
1

 
2

Sublease income
(8
)
 
(16
)
Net lease cost
$
76

 
$
151

(1) Short-term lease cost does not include expenses related to leases with a lease term of one month or less.

Weighted average remaining lease term and discount rate related to operating and finance leases are as follows:
As of
June 30,
 2019
Weighted average remaining lease term (years)
 
   Operating leases
8.0

   Finance leases
2.5

Weighted average discount rate
 
   Operating leases
3.3
%
   Finance leases
2.4
%

Other cash and non-cash related activities are as follows (in millions):
 
Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
 
   Operating cash flows for operating leases
$
116

Non-cash related activities
 
ROU assets obtained in exchange for new operating lease liabilities
$
50



The Company has recorded non-cash changes in Operating lease ROU assets and Non-current operating lease liabilities through Other assets and liabilities in cash flows from operations within the Condensed Consolidated Statements of Cash Flows. Non-cash ROU asset lease expense was $68 million and the change in Non-current operating lease liabilities was a decrease of $52 million for the six months ended June 30, 2019.

Maturity analysis of operating and finance leases as of June 30, 2019 are as follows (in millions):
 
Operating
 
Finance
 
Less:
 
 
 
Leases
 
Leases
 
Subleases
 
Total
Remainder of 2019
$
127

 
$
14

 
$
(17
)
 
$
124

2020
248

 
28

 
(34
)
 
242

2021
224

 
22

 
(33
)
 
213

2022
198

 
2

 
(34
)
 
166

2023
144

 

 
(15
)
 
129

Thereafter
511

 

 
(8
)
 
503

Total undiscounted future minimum lease payments
$
1,452

 
$
66

 
$
(141
)
 
$
1,377

Less: Imputed interest
(151
)
 
(1
)
 

 
(152
)
Present value of lease liabilities
$
1,301

 
$
65

 
$
(141
)
 
$
1,225

At December 31, 2018, future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows (in millions):
Year Ended December 31, 2018
Gross rental commitments
 
Rentals from subleases
 
Net rental commitments
2019
$
303

 
$
(34
)
 
$
269

2020
253

 
(30
)
 
223

2021
221

 
(30
)
 
191

2022
182

 
(30
)
 
152

2023
148

 
(12
)
 
136

Thereafter
472

 
(5
)
 
467

Total minimum payments required
$
1,579

 
$
(141
)
 
$
1,438


v3.19.2
Accounting Principles and Practices (Policies)
6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements and Notes thereto (the “Financial Statements”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Financial Statements include the accounts of Aon plc and all of its controlled subsidiaries (“Aon” or the “Company”). Intercompany accounts and transactions have been eliminated. The Financial Statements include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows for all periods presented.
Certain information and disclosures normally included in the Financial Statements prepared in accordance with U.S. GAAP have been condensed or omitted. 
Use of Estimates
Use of Estimates
The preparation of the accompanying Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the Financial Statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate.  Illiquid credit markets, volatile equity markets, and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the Financial Statements in future periods.
New Accounting Standards
Adoption of New Accounting Standards
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
In February 2018, the FASB issued new accounting guidance related to reclassification of certain tax effects from accumulated other comprehensive income. The guidance allowed a reclassification from accumulated comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The guidance was effective for the Company in the first quarter of 2019. For the three and six months ended June 30, 2019, there was no impact on the net income of the Company as Aon did not elect to reclassify stranded tax effects on the Condensed Consolidated Statement of Financial Position. It is the Company’s policy to release income tax effects from accumulated other comprehensive loss using the portfolio approach.
Targeted Improvements to Accounting for Hedging Activities
In August 2017, the FASB issued new accounting guidance on targeted improvements to accounting for hedging activities. The new guidance amended its hedge accounting model to enable entities to better portray their risk management activities in the financial statements. The guidance eliminated the requirement to separately measure and report hedge ineffectiveness and required the effect of a hedging instrument to be presented in the same income statement line as the hedged item. The new guidance was effective for Aon in the first quarter of 2019 and the Company adopted it on a modified retrospective basis with no cumulative effect adjustment to accumulated other comprehensive income or corresponding adjustment to Retained earnings. Changes to the Condensed Consolidated Statement of Income and financial statement disclosures were applied prospectively. Under the new guidance, gains or losses on certain derivative hedging instruments are recognized in revenue, as opposed to other income (expense) under the previous guidance. For the three and six months ended June 30, 2019, the adoption of this guidance had no impact on the net income and an insignificant impact on the operating income of the Company.
Leases
In February 2016, the FASB issued a new accounting standard on leases, which requires lessees to recognize assets and liabilities for most leases. Under the new standard, a lessee is required to recognize in the Consolidated Statements of Financial Position, liabilities to make future lease payments and right-of-use (“ROU”) assets representing its right to use the underlying assets for the lease term. The recognition, measurement, timing, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP.
The Company adopted the new standard as of January 1, 2019, using the modified retrospective approach for all leases existing at, or entered into after, the period of adoption. Under this approach, prior periods were not restated. Rather, lease balances and other disclosures for prior periods were provided in the notes to the financial statements as previously reported, and the cumulative effect of initially applying the guidance was recognized in the Condensed Consolidated Statement of Financial Position.
The modified retrospective approach includes several optional practical expedients available that entities may elect to apply upon transition. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allows a lessee to carryforward their population of existing leases, the classification of each lease, as well as the treatment of initial direct costs as of the period of adoption. In addition, the Company elected the practical expedient related to lease and non-lease components, as an accounting policy election for all asset classes, which allows a lessee to not separate non-lease from lease components and instead account for consideration paid in a contract as a single lease component. Lastly, the Company did not elect the practical expedient related to hindsight analysis which allows a lessee to use hindsight in determining the lease term and in assessing impairment of the entity’s ROU assets.
The Company has made a policy election to not recognize ROU assets and lease liabilities that arise from leases with an initial term of twelve months or less on the Condensed Consolidated Statements of Financial Position. However, the Company will recognize these lease payments in the Condensed Consolidated Statements of Income on a straight-line basis over the lease term and variable lease payments in the period in which the obligation is incurred. The Company has chosen to apply this accounting policy across all classes of underlying assets. Additionally, upon adoption, the Company utilized a discount rate to determine the present value of the lease payments based on information available as of January 1, 2019.
Beginning January 1, 2019, operating ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at the commencement date. Operating leases in effect prior to January 1, 2019 were recognized at the present value of the remaining payments on the remaining lease term as of January 1, 2019. Upon adoption, the Company recognized ROU assets and lease liabilities of $1.1 billion and $1.3 billion, respectively. The standard had an insignificant impact on the Condensed Consolidated Statements of Income and no impact on the Condensed Consolidated Statements of Cash Flows. Refer to Note 20 “Lease Commitments” for further information including significant assumptions and judgments made.

As a result of applying the modified retrospective approach to adopt the new leasing standard, the following adjustments were made to the Condensed Consolidated Statements of Financial Position as of January 1, 2019 (in millions):
 
December 31,
2018
 
 
 
January 1,
2019
 
As Reported
 
Adjustments
 
As Adjusted
Assets
 
 
 
 
 
Operating lease right-of-use assets
$

 
$
1,021

 
$
1,021

Other non-current assets
$
448

 
$
78

 
$
526

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Other current liabilities
$
936

 
$
219

 
$
1,155

Non-current operating lease liabilities
$

 
$
1,014

 
$
1,014

Other non-current liabilities
$
1,097

 
$
(134
)
 
$
963


Accounting Standards Issued But Not Yet Adopted
Changes to the Disclosure Requirements for Defined Benefit Plans
In August 2018, the FASB issued new accounting guidance related to the disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. The guidance requires sponsors of these plans to provide additional disclosures, including weighted average interest rates used in the entity’s cash balance pension plans and a narrative description of reasons for any significant gains or losses impacting the benefit obligation for the period, and eliminates certain previous disclosure requirements. The new guidance is effective for Aon in the first quarter of 2021 with early adoption permitted and will be applied retrospectively. The Company is currently evaluating the impact that the guidance will have on the Financial Statements and the period of adoption.
Simplifying the Test for Goodwill Impairment
In January 2017, the FASB issued new accounting guidance on simplifying the test for goodwill impairment. Currently the standard requires an entity to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. The new guidance removes Step 2. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. An entity will apply the new guidance on a prospective basis. The new guidance is effective for Aon in the first quarter of 2020 and early adoption is permitted. The Company is currently evaluating the period of adoption, but does not expect a significant impact on the Financial Statements.
Credit Losses
In June 2016, the FASB issued a new accounting standard on the measurement of credit losses on financial instruments. The new standard replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. An entity will apply the new standard through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the standard is effective. The new standard is effective for Aon in the first quarter of 2020 with early adoption permitted. The Company is currently evaluating the impact that the standard will have on the Financial Statements and will adopt the new accounting standard in the first quarter of 2020.
Revenue from Contract with Customer Revenue from Contracts with Customers
Disaggregation of Revenue
The following table summarizes revenue from contracts with customers by principal service line (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Commercial Risk Solutions
 
$
1,167

 
$
1,166

 
$
2,285

 
$
2,350

Reinsurance Solutions
 
420

 
380

 
1,208

 
1,122

Retirement Solutions
 
419

 
431

 
839

 
855

Health Solutions
 
317

 
309

 
803

 
760

Data & Analytic Services
 
286

 
277

 
622

 
571

Elimination
 
(3
)
 
(2
)
 
(8
)
 
(7
)
Total revenue
 
$
2,606

 
$
2,561

 
$
5,749

 
$
5,651


Consolidated revenue from contracts with customers by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
United States
 
$
1,146

 
$
1,125

 
$
2,307

 
$
2,241

Americas other than United States
 
241

 
243

 
467

 
480

United Kingdom
 
400

 
413

 
852

 
897

Europe, Middle East, & Africa other than United Kingdom
 
501

 
493

 
1,510

 
1,472

Asia Pacific
 
318

 
287

 
613

 
561

Total revenue
 
$
2,606

 
$
2,561

 
$
5,749

 
$
5,651



Contract Costs

An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Balance at beginning of period
 
$
236

 
$
240

 
$
329

 
$
298

Additions
 
336

 
341

 
682

 
711

Amortization
 
(357
)
 
(353
)
 
(796
)
 
(785
)
Impairment
 

 

 

 

Foreign currency translation and other
 
1

 
(12
)
 
1

 
(8
)
Balance at end of period
 
$
216

 
$
216

 
$
216

 
$
216



An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Balance at beginning of period
 
$
155

 
$
144

 
$
156

 
$
145

Additions
 
17

 
13

 
26

 
21

Amortization
 
(11
)
 
(11
)
 
(22
)
 
(21
)
Impairment
 

 

 

 

Foreign currency translation and other
 

 
(2
)
 
1

 
(1
)
Balance at end of period
 
$
161

 
$
144

 
$
161

 
$
144


Derivatives
The Company is exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, the Company enters into various derivative instruments that reduce these risks by creating offsetting exposures. The Company does not enter into derivative transactions for trading or speculative purposes.
Foreign Exchange Risk Management
The Company is exposed to foreign exchange risk when it earns revenues, pays expenses, enters into monetary intercompany transfers or other transactions denominated in a currency that differs from its functional currency. The Company uses foreign exchange derivatives, typically forward contracts, options and cross currency swaps, to reduce its overall exposure to the effects of currency fluctuations on cash flows. These exposures are hedged, on average, for less than 2 years. These derivatives are accounted for as hedges, and changes in fair value are recorded each period in Other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income.
The Company also uses foreign exchange derivatives, typically forward contracts and options, to economically hedge the currency exposure of the Company’s global liquidity profile, including monetary assets or liabilities that are denominated in a non-functional currency of an entity, typically on a rolling 30-day basis, but may be for up to 1 year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income (expense) in the Condensed Consolidated Statements of Income.
Fair Value Measurement
The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments:
Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews treasury and government money market funds to obtain reasonable assurance that the fund net asset value is $1 per share, and reviews the floating net asset value of institutional prime money market funds for reasonableness. 
Equity investments consist of domestic and international equity securities and equity derivatives valued using the closing stock price on a national securities exchange. Over the counter equity derivatives are valued using observable inputs such as underlying prices of the underlying security and volatility. On a sample basis the Company reviews the listing of Level 1 equity securities in the portfolio and agrees the closing stock prices to a national securities exchange, and independently verifies the observable inputs for Level 2 equity derivatives and securities.
Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves, and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using discounted cash flow models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains an understanding of the models, inputs, and assumptions used in developing prices provided by its vendors through discussions with the fund managers. The Company independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on the Company’s guidelines, it is then reviewed by management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and historically are not material to the fair value estimates used in the Financial Statements.
Derivatives are carried at fair value, based upon industry standard valuation techniques that use, where possible, current market-based or independently sourced pricing inputs, such as interest rates, currency exchange rates, or implied volatilities.
Debt is carried at outstanding principal balance, less any unamortized issuance costs, discount or premium. Fair value is based on quoted market prices or estimates using discounted cash flow analyses based on current borrowing rates for similar types of borrowing arrangements.
v3.19.2
Accounting Principles and Practices Accounting Principles and Practices (Tables)
6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
As a result of applying the modified retrospective approach to adopt the new leasing standard, the following adjustments were made to the Condensed Consolidated Statements of Financial Position as of January 1, 2019 (in millions):
 
December 31,
2018
 
 
 
January 1,
2019
 
As Reported
 
Adjustments
 
As Adjusted
Assets
 
 
 
 
 
Operating lease right-of-use assets
$

 
$
1,021

 
$
1,021

Other non-current assets
$
448

 
$
78

 
$
526

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Other current liabilities
$
936

 
$
219

 
$
1,155

Non-current operating lease liabilities
$

 
$
1,014

 
$
1,014

Other non-current liabilities
$
1,097

 
$
(134
)
 
$
963


v3.19.2
Revenue from Contracts with Customers (Tables)
6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table summarizes revenue from contracts with customers by principal service line (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Commercial Risk Solutions
 
$
1,167

 
$
1,166

 
$
2,285

 
$
2,350

Reinsurance Solutions
 
420

 
380

 
1,208

 
1,122

Retirement Solutions
 
419

 
431

 
839

 
855

Health Solutions
 
317

 
309

 
803

 
760

Data & Analytic Services
 
286

 
277

 
622

 
571

Elimination
 
(3
)
 
(2
)
 
(8
)
 
(7
)
Total revenue
 
$
2,606

 
$
2,561

 
$
5,749

 
$
5,651


Consolidated revenue from contracts with customers by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
United States
 
$
1,146

 
$
1,125

 
$
2,307

 
$
2,241

Americas other than United States
 
241

 
243

 
467

 
480

United Kingdom
 
400

 
413

 
852

 
897

Europe, Middle East, & Africa other than United Kingdom
 
501

 
493

 
1,510

 
1,472

Asia Pacific
 
318

 
287

 
613

 
561

Total revenue
 
$
2,606

 
$
2,561

 
$
5,749

 
$
5,651


Capitalized Contract Cost
An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Balance at beginning of period
 
$
236

 
$
240

 
$
329

 
$
298

Additions
 
336

 
341

 
682

 
711

Amortization
 
(357
)
 
(353
)
 
(796
)
 
(785
)
Impairment
 

 

 

 

Foreign currency translation and other
 
1

 
(12
)
 
1

 
(8
)
Balance at end of period
 
$
216

 
$
216

 
$
216

 
$
216



An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Balance at beginning of period
 
$
155

 
$
144

 
$
156

 
$
145

Additions
 
17

 
13

 
26

 
21

Amortization
 
(11
)
 
(11
)
 
(22
)
 
(21
)
Impairment
 

 

 

 

Foreign currency translation and other
 

 
(2
)
 
1

 
(1
)
Balance at end of period
 
$
161

 
$
144

 
$
161

 
$
144


v3.19.2
Other Financial Data (Tables)
6 Months Ended
Jun. 30, 2019
Other Financial Data [Abstract]  
Schedule of Other Income (Expense)
Other income (expense) consists of the following (in millions):
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2019
 
2018
 
2019
 
2018
Foreign currency remeasurement
$
11

 
$
29

 
$

 
$
13

Disposal of businesses
2

 

 
7

 
(1
)
Pension and other postretirement
5

 
(7
)
 
9

 
(5
)
Equity earnings
1

 
1

 
2

 
2

Financial instruments
(13
)
 
(27
)
 
(12
)
 
(27
)
Other

 
1

 

 

Total
$
6

 
$
(3
)
 
$
6

 
$
(18
)

Schedule of Allowance for Doubtful Accounts
An analysis of the allowance for doubtful accounts are as follows (in millions):
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2019
 
2018
 
2019
 
2018
Balance at beginning of period
$
64

 
$
65

 
$
64

 
$
59

Provision charged to Other general expenses
4

 
3

 
12

 
11

Accounts written off, net of recoveries
(3
)
 
(6
)
 
(11
)
 
(8
)
Balance at end of period
$
65

 
$
62

 
$
65

 
$
62


Schedule of Other Current Assets
The components of Other current assets are as follows (in millions):
As of
June 30,
2019
 
December 31,
2018
Costs to fulfill contracts with customers (1)
$
216

 
$
329

Prepaid expenses
128

 
97

Taxes receivable
145

 
113

Other (2)
142

 
79

Total
$
631

 
$
618


(1)
Refer to Note 3 “Revenue from Contracts with Customers” for further information.
(2)
December 31, 2018 includes $12 million previously classified as “Receivables from the Divested Business
Schedule of Other Non-current Assets
The components of Other non-current assets are as follows (in millions):
As of
June 30,
2019
 
December 31,
2018
Costs to obtain contracts with customers (1)
$
161

 
$
156

Taxes receivable
100

 
100

Leases (2)
65

 

Investments
54

 
54

Other
141

 
138

Total
$
521

 
$
448


(1)
Refer to Note 3 “Revenue from Contracts with Customers” for further information.
(2)
Refer to Note 20 “Lease Commitments” for further information.
Schedule of Other Current Liabilities
The components of Other current liabilities are as follows (in millions):
As of
June 30,
2019
 
December 31,
2018
Deferred revenue (1)
$
337

 
$
251

Leases (2)
223

 

Taxes payable
133

 
83

Other
504

 
602

Total
$
1,197

 
$
936


(1)
During the three and six months ended June 30, 2019, $95 million and $241 million, respectively, was recognized in the Condensed Consolidated Statements of Income. During the three and six months ended June 30, 2018, $115 million and $215 million, respectively, was recognized in the Condensed Consolidated Statements of Income.
(2)
Refer to Note 20 “Lease Commitments” for further information.
Schedule of Other Non-current Liabilities
The components of Other non-current liabilities are as follows (in millions):
As of
June 30,
2019
 
December 31,
2018
Taxes payable (1)
$
576

 
$
585

Leases
37

 
169

Deferred revenue
59

 
65

Compensation and benefits
49

 
56

Other
203

 
222

Total
$
924

 
$
1,097


(1) Includes $221 million and $240 million for the non-current portion of the one-time mandatory transition tax on accumulated foreign earnings as of June 30, 2019 and December 31, 2018, respectively.
v3.19.2
Discontinued Operations (Tables)
6 Months Ended
Jun. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations The following table presents the financial results of the Divested Business (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30

 
2019
 
2018
 
2019
 
2018
Expenses
 
 
 
 
 
 
 
 
Total operating expenses
 
$
1

 
$

 
$
1

 
$
3

Loss from discontinued operations before income taxes
 
(1
)
 

 
(1
)
 
(3
)
Income tax benefit
 
(1
)
 

 
(1
)
 
(1
)
Net loss from discontinued operations excluding gain
 

 

 

 
(2
)
Gain on sale of discontinued operations, net of tax
 

 
1

 

 
9

Net income from discontinued operations
 
$

 
$
1

 
$

 
$
7


v3.19.2
Restructuring (Tables)
6 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs
The following table summarizes restructuring and separation costs by type that have been incurred through June 30, 2019 and are estimated to be incurred through the end of the Restructuring Plan (in millions). Estimated costs by type may be revised in future periods as these assumptions are updated:
 
 
Three Months Ended June 30, 2019
 
Six Months Ended June 30, 2019
 
Inception to Date
 
Estimated Remaining Costs
 
Estimated Total Cost (1)
Workforce reduction
 
$
78

 
$
102

 
$
516

 
$
14

 
$
530

Technology rationalization (2)
 
4

 
15

 
95

 
35

 
130

Lease consolidation (2)
 
5

 
14

 
50

 
30

 
80

Asset impairments
 
2

 
2

 
41

 
4

 
45

Other costs associated with restructuring and separation (2) (3)
 
38

 
85

 
498

 
67

 
565

Total restructuring and related expenses
 
$
127

 
$
218

 
$
1,200

 
$
150

 
$
1,350

(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. Estimated Total Cost includes $100 million of non-cash charges.
(2)
Total contract termination costs incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs, respectively, associated with restructuring and separation were for the three months ended June 30, 2019, $2 million, $4 million, and $1 million; for the six months ended June 30, 2019, were $3 million, $13 million, and $3 million; and since inception of the Restructuring Plan, were $9 million, $46 million, and $91 million. Total estimated contract termination costs expected to be incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs associated with restructuring and separation, are $15 million, $80 million, and $95 million, respectively.
(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.
Schedule of Restructuring Reserve by Type of Cost
The changes in the Company’s liabilities for the Restructuring Plan as of June 30, 2019 are as follows (in millions):
 
 
 
Balance as of December 31, 2018
 
$
201

Expensed
 
204

Cash payments
 
(222
)
Foreign currency translation
 
1

Balance as of June 30, 2019
 
$
184


v3.19.2
Acquisitions and Dispositions of Businesses (Tables)
6 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed The following table includes the fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisitions (in millions):
 
 
Six Months Ended June 30, 2019
Consideration Transferred
 
$
17

Deferred and contingent consideration
 
5

Aggregate consideration transferred
 
$
22

 
 
 
Assets acquired
 
 
Cash and cash equivalents
 
$
2

Goodwill
 
15

Intangible assets, net
 
9

Other assets
 
4

Total assets acquired
 
30

Liabilities assumed
 
 
Current liabilities
 
6

Other non-current liabilities
 
2

Total liabilities assumed
 
8

Net assets acquired
 
$
22


v3.19.2
Goodwill and Other Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in the Net Carrying Amount of Goodwill by Operating Segment
The changes in the net carrying amount of goodwill for the six months ended June 30, 2019 are as follows (in millions):
Balance as of December 31, 2018
$
8,171

Goodwill related to current year acquisitions
15

Goodwill related to disposals
(9
)
Goodwill related to prior year acquisitions
2

Foreign currency translation and other
19

Balance as of June 30, 2019
$
8,198


Schedule of Other Intangible Assets by Asset Class
Other intangible assets by asset class are as follows (in millions):
 
June 30, 2019
 
December 31, 2018
 
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
$
2,254

 
$
1,517

 
$
737

 
$
2,240

 
$
1,444

 
$
796

Tradenames
1,028

 
847

 
181

 
1,027

 
740

 
287

Technology and other
385

 
330

 
55

 
391

 
325

 
66

Total
$
3,667

 
$
2,694

 
$
973

 
$
3,658

 
$
2,509

 
$
1,149


Schedule of Estimated Future Amortization Expense on Intangible Assets
The estimated future amortization for finite lived intangible assets as of June 30, 2019 is as follows (in millions):
Remainder of 2019
$
192

2020
223

2021
128

2022
87

2023
74

2024
58

Thereafter
211

Total
$
973


v3.19.2
Debt (Tables)
6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Weighted average commercial paper outstanding
 
$
639

 
$
744

 
482

 
$
437

Weighted average interest rate of commercial paper outstanding
 
0.70
%
 
0.92
%
 
0.63
%
 
0.85
%

Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Company’s Condensed Consolidated Statements of Financial Position, is as follows (in millions):
As of
 
June 30, 2019
 
December 31, 2018
Commercial paper outstanding
 
$
843

 
$
250


v3.19.2
Shareholders' Equity (Tables)
6 Months Ended
Jun. 30, 2019
Equity [Abstract]  
Schedule of Repurchase Agreements
The following table summarizes the Company’s Share Repurchase activity (in millions, except per share data):
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2019
 
2018
 
2019
 
2018
Shares repurchased
5.8

 
2.8

 
6.4

 
6.7

Average price per share
$
183.23

 
$
141.23

 
$
181.07

 
$
141.06

Costs recorded to retained earnings:

 

 
 
 
 
Total repurchase cost
$
1,050

 
$
400

 
$
1,150

 
$
950

Additional associated costs
6

 
2

 
7

 
5

Total costs recorded to retained earnings
$
1,056

 
$
402

 
$
1,157

 
$
955


Schedule of Components of Weighted Average Number of Shares
Weighted average ordinary shares outstanding are as follows (in millions):
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2019
 
2018
 
2019
 
2018
Basic weighted average ordinary shares outstanding
240.6

 
246.0

 
241.4

 
247.2

Dilutive effect of potentially issuable shares
2.2

 
1.4

 
1.8

 
1.6

Diluted weighted average ordinary shares outstanding
242.8

 
247.4

 
243.2

 
248.8


Components of Accumulated Other Comprehensive Loss, Net of Related Tax
Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions):
 
Change in Fair Value of Financial Instruments (1) 
 
Foreign Currency Translation Adjustments
 
Postretirement Benefit Obligation (2)
 
Total
Balance at December 31, 2018
$
(15
)
 
$
(1,319
)
 
$
(2,575
)
 
$
(3,909
)
Other comprehensive income (loss) before reclassifications, net
(8
)
 
28

 
5

 
25

Amounts reclassified from accumulated other comprehensive income:
 
 


 


 


Amounts reclassified from accumulated other comprehensive income
8

 

 
52

 
60

Tax expense
(1
)
 

 
(12
)
 
(13
)
Amounts reclassified from accumulated other comprehensive income, net
7

 

 
40

 
47

Net current period other comprehensive income (loss)
(1
)
 
28

 
45

 
72

Balance at June 30, 2019
$
(16
)
 
$
(1,291
)
 
$
(2,530
)
 
$
(3,837
)
(1)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Revenue, Interest expense, and Compensation and benefits in the accompanying Condensed Consolidated Statements of Income. Refer to Note 15 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity.
(2)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense).
v3.19.2
Employee Benefits (Tables)
6 Months Ended
Jun. 30, 2019
Retirement Benefits [Abstract]  
Components of net periodic benefit cost for the pension plans
The following table provides the components of the net periodic (benefit) cost recognized in the Condensed Consolidated Statements of Income for Aon’s significant U.K., U.S., and other international pension plans. Service cost is reported in Compensation and benefits and all other components are reported in Other income (expense) as follows (in millions):
 
Three Months Ended June 30
 
U.K.
 
U.S.
 
Other
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Service cost
$

 
$

 
$

 
$

 
$

 
$

Interest cost
27

 
29

 
27

 
25

 
7

 
7

Expected return on plan assets, net of administration expenses
(48
)
 
(50
)
 
(34
)
 
(36
)
 
(10
)
 
(11
)
Amortization of prior-service cost

 

 

 
1

 

 

Amortization of net actuarial loss
8

 
7

 
14

 
15

 
3

 
3

Net periodic (benefit) cost
(13
)
 
(14
)
 
7

 
5

 

 
(1
)
Loss on pension settlement

 
16

 

 

 

 

Total net periodic (benefit) cost
$
(13
)

$
2


$
7


$
5


$


$
(1
)

 
Six Months Ended June 30
 
U.K.
 
U.S.
 
Other
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Service cost
$

 
$

 
$

 
$

 
$

 
$

Interest cost
55

 
58

 
54

 
50

 
14

 
14

Expected return on plan assets, net of administration expenses
(97
)
 
(101
)
 
(68
)
 
(72
)
 
(20
)
 
(23
)
Amortization of prior-service cost
1

 

 
1

 
1

 

 

Amortization of net actuarial loss
15

 
15

 
27

 
30

 
6

 
6

Net periodic (benefit) cost
(26
)
 
(28
)
 
14

 
9

 

 
(3
)
Loss on pension settlement

 
23

 

 

 

 

Total net periodic (benefit) cost
$
(26
)
 
$
(5
)
 
$
14

 
$
9

 
$

 
$
(3
)
v3.19.2
Share-Based Compensation Plans (Tables)
6 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]  
Share-based compensation expense recognized in continuing operations
The following table summarizes share-based compensation expense recognized in the Condensed Consolidated Statements of Income in Compensation and benefits (in millions):
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2019
 
2018
 
2019
 
2018
Restricted share units (“RSUs”)
$
50

 
$
46

 
$
113

 
$
104

Performance share awards (“PSAs”)
39

 
23

 
62

 
39

Employee share purchase plans
2

 
1

 
5

 
4

Total share-based compensation expense 
$
91

 
$
70

 
$
180

 
$
147


Restricted share unit activity
The following table summarizes the status of the Company’s RSUs, including shares related to the Divested Business (shares in thousands, except fair value):
 
Six Months Ended June 30, 2019
 
Six Months Ended June 30, 2018
 
Shares
 
Fair Value (1) 
 
Shares
 
Fair Value (1) 
Non-vested at beginning of period
4,208

 
$
120

 
4,849

 
$
104

Granted
1,178

 
$
173

 
1,352

 
$
140

Vested
(1,451
)
 
$
113

 
(1,664
)
 
$
98

Forfeited
(97
)
 
$
124

 
(109
)
 
$
109

Non-vested at end of period
3,838

 
$
139

 
4,428

 
$
117


(1)
Represents per share weighted average fair value of award at date of grant.
Performance-based plans
The following table summarizes the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the six months ended June 30, 2019 and the years ended December 31, 2018 and 2017, respectively (shares in thousands and dollars in millions, except fair value):
 
June 30,
2019
 
December 31,
2018
 
December 31,
2017
Target PSAs granted during period
467

 
564

 
548

Weighted average fair value per share at date of grant
$
164

 
$
134

 
$
114

Number of shares that would be issued based on current performance levels
464

 
970

 
1,066

Unamortized expense, based on current performance levels
$
69

 
$
67

 
$
20


v3.19.2
Derivatives and Hedging (Tables)
6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional and fair values of derivative instruments
The notional and fair values of derivative instruments are as follows (in millions):
 
Notional Amount
 
Net Amount of Derivative Assets
 Presented in the Statements of Financial Position (1)
 
Net Amount of Derivative Liabilities
 Presented in the Statements of Financial Position (2)
 
June 30,
2019
 
December 31,
2018
 
June 30,
2019
 
December 31,
2018
 
June 30,
2019
 
December 31,
2018
Foreign exchange contracts:
 

 
 

 
 

 
 

 
 

 
 

Accounted for as hedges
$
588

 
$
646

 
$
14

 
$
17

 
$
1

 
$
2

Not accounted for as hedges (3)
285

 
269

 
5

 
1

 

 
6

Total
$
873

 
$
915

 
$
19

 
$
18

 
$
1

 
$
8

(1)
Included within Other current assets ($8 million at June 30, 2019 and $3 million at December 31, 2018) or Other non-current assets ($11 million at June 30, 2019 and $15 million at December 31, 2018).
(2)
Included within Other current liabilities ($1 million at June 30, 2019 and $5 million at December 31, 2018) or Other non-current liabilities ($3 million at December 31, 2018).
(3)
These contracts typically are for 30 day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date.
Derivative gains (losses)
The amounts of derivative gains (losses) recognized in the Financial Statements are as follows (in millions):
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2019
 
2018
 
2019
 
2018
Loss recognized in Accumulated other comprehensive loss
$
(12
)
 
$
(25
)
 
$
(8
)
 
$
(11
)



The amounts of derivative gains (losses) reclassified from Accumulated other comprehensive loss into the Condensed Consolidated Statements of Income are as follows (in millions):
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
 
2019
 
2018
 
2019
 
2018
Revenue (1)
 
$
(3
)
 
$

 
$
(7
)
 
$

Compensation and benefits
 

 

 

 
1

Other general expenses
 

 
(1
)
 

 
(2
)
Interest expense
 

 

 
(1
)
 
(1
)
Other income (expense) (1)
 

 
(1
)
 

 
(4
)
Total
 
$
(3
)
 
$
(2
)
 
$
(8
)
 
$
(6
)

(1)
With the adoption of new hedge accounting guidance in the first quarter of 2019, gains (losses) on derivatives accounted for as hedges are recognized in Total revenue in the Company’s Condensed Consolidated Statements of Income rather than Other income (expense). Refer to Note 2 “Accounting Principles and Practices” for additional details.
v3.19.2
Fair Value Measurements and Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities that are measured at fair value on a recurring basis
The following tables present the categorization of the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 (in millions):
 
 
 
Fair Value Measurements Using
 
Balance at June 30, 2019
 
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)
$
2,356

 
$
2,356

 
$

 
$

Other investments:
 

 
 

 
 

 
 

Government bonds
$
1

 
$

 
$
1

 
$

Equity investments
$
1

 
$

 
$
1

 
$

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
21

 
$

 
$
21

 
$

Liabilities
 

 
 

 
 

 
 

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
3

 
$

 
$
3

 
$


 
 
 
Fair Value Measurements Using
 
Balance at December 31, 2018
 
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)
$
1,759

 
$
1,759

 
$

 
$

Other investments:
 

 
 

 
 

 
 

Government bonds
$
1

 
$

 
$
1

 
$

Equity investments
$
2

 
$

 
$
2

 
$

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
21

 
$

 
$
21

 
$

Liabilities
 

 
 

 
 

 
 

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
12

 
$

 
$
12

 
$

(1)
Included within Fiduciary assets or Short-term investments in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. 
(2)
Refer to Note 15 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity.
Schedule of financial instruments where the carrying amounts and fair values differ
The fair value of debt is classified as Level 2 of the fair value hierarchy. The following table provides the carrying value and fair value for the Company’s term debt (in millions):
 
June 30, 2019
 
December 31, 2018
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt
$
6,740

 
$
7,356

 
$
5,993

 
$
6,159


v3.19.2
Guarantee of Registered Securities (Tables)
6 Months Ended
Jun. 30, 2019
Guarantee of Registered Securities [Abstract]  
Condensed Consolidating Statements of Income
Condensed Consolidating Statement of Income
 
 
Three Months Ended June 30, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$
2,606

 
$

 
$
2,606

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
22

 
4

 
1,475

 

 
1,501

Information technology
 

 

 
126

 

 
126

Premises
 

 
9

 
76

 

 
85

Depreciation of fixed assets
 

 

 
40

 

 
40

Amortization and impairment of intangible assets
 

 

 
97

 

 
97

Other general expenses
 
3

 
6

 
335

 

 
344

Total operating expenses
 
25

 
19

 
2,149

 

 
2,193

Operating income (loss)
 
(25
)
 
(19
)
 
457

 

 
413

Interest income
 

 
9

 

 
(8
)
 
1

Interest expense
 
(45
)
 
(34
)
 
(6
)
 
8

 
(77
)
Intercompany interest income (expense)
 
3

 
(116
)
 
113

 

 

Intercompany other income (expense)
 
137

 
(164
)
 
27

 

 

Other income (expense)
 
(11
)
 
(14
)
 
24

 
7

 
6

Income (loss) from continuing operations before income taxes
 
59

 
(338
)
 
615

 
7

 
343

Income tax expense (benefit)
 

 
(64
)
 
120

 

 
56

Net income (loss) from continuing operations
 
59

 
(274
)
 
495

 
7

 
287

Net income from discontinued operations
 

 

 

 

 

Net income (loss) before equity in earnings of subsidiaries
 
59

 
(274
)
 
495

 
7

 
287

Equity in earnings of subsidiaries
 
211

 
301

 
27

 
(539
)
 

Net income
 
270

 
27

 
522

 
(532
)
 
287

Less: Net income attributable to noncontrolling interests
 

 

 
10

 

 
10

Net income attributable to Aon shareholders
 
$
270

 
$
27

 
$
512

 
$
(532
)
 
$
277

Condensed Consolidating Statement of Income
 
 
Three Months Ended June 30, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$
2,561

 
$

 
$
2,561

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
15

 
1

 
1,478

 

 
1,494

Information technology
 

 

 
123

 

 
123

Premises
 

 

 
96

 

 
96

Depreciation of fixed assets
 

 

 
47

 

 
47

Amortization and impairment of intangible assets
 

 

 
282

 

 
282

Other general expenses
 
2

 
91

 
442

 

 
535

Total operating expenses
 
17

 
92

 
2,468

 

 
2,577

Operating income (loss)
 
(17
)
 
(92
)
 
93

 

 
(16
)
Interest income
 

 
15

 

 
(14
)
 
1

Interest expense
 
(48
)
 
(25
)
 
(10
)
 
14

 
(69
)
Intercompany interest income (expense)
 
3

 
(129
)
 
126

 

 

Intercompany other income (expense)
 
(93
)
 
10

 
83

 

 

Other income (expense)
 
48

 
(20
)
 
(13
)
 
(18
)
 
(3
)
Income (loss) from continuing operations before income taxes
 
(107
)
 
(241
)
 
279

 
(18
)
 
(87
)
Income tax expense (benefit)
 
(3
)
 
(50
)
 
(91
)
 

 
(144
)
Net income (loss) from continuing operations
 
(104
)
 
(191
)
 
370

 
(18
)
 
57

Net income from discontinued operations
 

 

 
1

 

 
1

Net income (loss) before equity in earnings of subsidiaries
 
(104
)
 
(191
)
 
371

 
(18
)
 
58

Equity in earnings of subsidiaries
 
170

 
207

 
16

 
(393
)
 

Net income
 
66

 
16

 
387

 
(411
)
 
58

Less: Net income attributable to noncontrolling interests
 

 

 
10

 

 
10

Net income attributable to Aon shareholders
 
$
66

 
$
16

 
$
377

 
$
(411
)
 
$
48




Condensed Consolidating Statement of Income
 
 
Six Months Ended June 30, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$
5,749

 
$

 
$
5,749

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
42

 
12

 
3,031

 

 
3,085

Information technology
 

 

 
243

 

 
243

Premises
 

 
13

 
159

 

 
172

Depreciation of fixed assets
 

 

 
80

 

 
80

Amortization and impairment of intangible assets
 

 

 
194

 

 
194

Other general expenses
 
3

 
2

 
685

 

 
690

Total operating expenses
 
45

 
27

 
4,392

 

 
4,464

Operating income (loss)
 
(45
)
 
(27
)
 
1,357

 

 
1,285

Interest income
 

 
18

 

 
(15
)
 
3

Interest expense
 
(91
)
 
(62
)
 
(11
)
 
15

 
(149
)
Intercompany interest income (expense)
 
7

 
(232
)
 
225

 

 

Intercompany other income (expense)
 
168

 
(263
)
 
95

 

 

Other income (expense)
 
(6
)
 
(25
)
 
32

 
5

 
6

Income (loss) from continuing operations before income taxes
 
33

 
(591
)
 
1,698

 
5

 
1,145

Income tax expense (benefit)
 
(5
)
 
(106
)
 
293

 

 
182

Net income (loss) from continuing operations
 
38

 
(485
)
 
1,405

 
5

 
963

Net income from discontinued operations
 

 

 

 

 

Net income (loss) before equity in earnings of subsidiaries
 
38

 
(485
)
 
1,405

 
5

 
963

Equity in earnings of subsidiaries
 
893

 
1,025

 
540

 
(2,458
)
 

Net income
 
931

 
540

 
1,945

 
(2,453
)
 
963

Less: Net income attributable to noncontrolling interests
 

 

 
27

 

 
27

Net income attributable to Aon shareholders
 
$
931

 
$
540

 
$
1,918

 
$
(2,453
)
 
$
936

Condensed Consolidating Statement of Income
 
 
Six Months Ended June 30, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$
5,651

 
$

 
$
5,651

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
34

 
2

 
3,074

 

 
3,110

Information technology
 

 

 
238

 

 
238

Premises
 

 

 
189

 

 
189

Depreciation of fixed assets
 

 

 
86

 

 
86

Amortization and impairment of intangible assets
 

 

 
392

 

 
392

Other general expenses
 
3

 
91

 
759

 

 
853

Total operating expenses
 
37

 
93

 
4,738

 

 
4,868

Operating income (loss)
 
(37
)
 
(93
)
 
913

 

 
783

Interest income
 

 
29

 

 
(24
)
 
5

Interest expense
 
(97
)
 
(49
)
 
(17
)
 
24

 
(139
)
Intercompany interest income (expense)
 
7

 
(257
)
 
250

 

 

Intercompany other income (expense)
 
(146
)
 
5

 
141

 

 

Other income (expense)
 
23

 
(26
)
 

 
(15
)
 
(18
)
Income (loss) from continuing operations before income taxes
 
(250
)
 
(391
)
 
1,287

 
(15
)
 
631

Income tax expense (benefit)
 
(19
)
 
(77
)
 
66

 

 
(30
)
Net income (loss) from continuing operations
 
(231
)
 
(314
)
 
1,221

 
(15
)
 
661

Net income from discontinued operations
 

 

 
7

 

 
7

Net income (loss) before equity in earnings of subsidiaries
 
(231
)
 
(314
)
 
1,228

 
(15
)
 
668

Equity in earnings of subsidiaries
 
888

 
912

 
598

 
(2,398
)
 

Net income
 
657

 
598

 
1,826

 
(2,413
)
 
668

Less: Net income attributable to noncontrolling interests
 

 

 
26

 

 
26

Net income attributable to Aon shareholders
 
$
657

 
$
598

 
$
1,800

 
$
(2,413
)
 
$
642



Condensed Consolidating Statements of Comprehensive Income
Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended June 30, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
270

 
$
27

 
$
522

 
$
(532
)
 
$
287

Less: Net income attributable to noncontrolling interests
 

 

 
10

 

 
10

Net income attributable to Aon shareholders
 
270

 
27

 
512

 
(532
)
 
277

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of financial instruments
 

 

 
(8
)
 

 
(8
)
Foreign currency translation adjustments
 

 

 
(96
)
 
(7
)
 
(103
)
Postretirement benefit obligation
 

 
10

 
4

 

 
14

Total other comprehensive income (loss)
 

 
10

 
(100
)
 
(7
)
 
(97
)
Equity in other comprehensive income (loss) of subsidiaries, net of tax
 
(90
)
 
(118
)
 
(108
)
 
316

 

Less: Other comprehensive income (loss) attributable to noncontrolling interests
 

 

 

 

 

Total other comprehensive income (loss) attributable to Aon shareholders
 
(90
)
 
(108
)
 
(208
)
 
309

 
(97
)
Comprehensive income attributable (loss) to Aon shareholders
 
$
180

 
$
(81
)
 
$
304

 
$
(223
)
 
$
180

Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended June 30, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
66

 
$
16

 
$
387

 
$
(411
)
 
$
58

Less: Net income attributable to noncontrolling interests
 

 

 
10

 

 
10

Net income attributable to Aon shareholders
 
66

 
16

 
377

 
(411
)
 
48

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of financial instruments
 

 
(4
)
 
3

 

 
(1
)
Foreign currency translation adjustments
 

 

 
(478
)
 
18

 
(460
)
Postretirement benefit obligation
 

 
11

 
111

 

 
122

Total other comprehensive income (loss)
 

 
7

 
(364
)
 
18

 
(339
)
Equity in other comprehensive income (loss) of subsidiaries, net of tax
 
(351
)
 
(345
)
 
(338
)
 
1,034

 

Less: Other comprehensive income (loss) attributable to noncontrolling interests
 

 

 
(6
)
 

 
(6
)
Total other comprehensive income (loss) attributable to Aon shareholders
 
(351
)
 
(338
)
 
(696
)
 
1,052

 
(333
)
Comprehensive income attributable (loss) to Aon shareholders
 
$
(285
)
 
$
(322
)
 
$
(319
)
 
$
641

 
$
(285
)

Condensed Consolidating Statement of Comprehensive Income
 
 
Six Months Ended June 30, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
931

 
$
540

 
$
1,945

 
$
(2,453
)
 
$
963

Less: Net income attributable to noncontrolling interests
 

 

 
27

 

 
27

Net income attributable to Aon shareholders
 
931

 
540

 
1,918

 
(2,453
)
 
936

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of financial instruments
 

 
2

 
(3
)
 

 
(1
)
Foreign currency translation adjustments
 

 

 
35

 
(5
)
 
30

Postretirement benefit obligation
 

 
32

 
13

 

 
45

Total other comprehensive income (loss)
 

 
34

 
45

 
(5
)
 
74

Equity in other comprehensive income (loss) of subsidiaries, net of tax
 
77

 
(3
)
 
31

 
(105
)
 

Less: Other comprehensive income (loss) attributable to noncontrolling interests
 

 

 
2

 

 
2

Total other comprehensive income (loss) attributable to Aon shareholders
 
77

 
31

 
74

 
(110
)
 
72

Comprehensive income attributable (loss) to Aon shareholders
 
$
1,008

 
$
571

 
$
1,992

 
$
(2,563
)
 
$
1,008

Condensed Consolidating Statement of Comprehensive Income
 
 
Six Months Ended June 30, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
657

 
$
598

 
$
1,826

 
$
(2,413
)
 
$
668

Less: Net income attributable to noncontrolling interests
 

 

 
26

 

 
26

Net income attributable to Aon shareholders
 
657

 
598

 
1,800

 
(2,413
)
 
642

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of financial instruments
 

 
(1
)
 
14

 

 
13

Foreign currency translation adjustments
 

 

 
(228
)
 
15

 
(213
)
Postretirement benefit obligation
 

 
22

 
148

 

 
170

Total other comprehensive income (loss)
 

 
21

 
(66
)
 
15

 
(30
)
Equity in other comprehensive income (loss) of subsidiaries, net of tax
 
(42
)
 
(60
)
 
(39
)
 
141

 

Less: Other comprehensive income (loss) attributable to noncontrolling interests
 

 

 
(3
)
 

 
(3
)
Total other comprehensive income (loss) attributable to Aon shareholders
 
(42
)
 
(39
)
 
(102
)
 
156

 
(27
)
Comprehensive income attributable (loss) to Aon shareholders
 
$
615

 
$
559

 
$
1,698

 
$
(2,257
)
 
$
615


Condensed Consolidating Statements of Financial Position
Condensed Consolidating Statement of Financial Position
 
 
As of June 30, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Assets
 
 

 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
1,371

 
$
537

 
$
(1,327
)
 
$
581

Short-term investments
 

 
125

 
110

 

 
235

Receivables, net
 

 

 
3,227

 

 
3,227

Fiduciary assets
 

 

 
12,071

 

 
12,071

Current intercompany receivables
 
167

 
3,421

 
12,843

 
(16,431
)
 

Other current assets
 

 
10

 
621

 

 
631

Total current assets
 
167

 
4,927

 
29,409

 
(17,758
)
 
16,745

Goodwill
 

 

 
8,198

 

 
8,198

Intangible assets, net
 

 

 
973

 

 
973

Fixed assets, net
 

 

 
599

 

 
599

Operating lease right-of-use assets
 

 
112

 
847

 

 
959

Deferred tax assets
 
93

 
498

 
150

 
(142
)
 
599

Prepaid pension
 

 
5

 
1,208

 

 
1,213

Non-current intercompany receivables
 
404

 
261

 
7,200

 
(7,865
)
 

Other non-current assets
 
1

 
28

 
492

 

 
521

Investment in subsidiary
 
8,937

 
20,147

 
(424
)
 
(28,660
)
 

Total assets
 
$
9,602

 
$
25,978

 
$
48,652

 
$
(54,425
)
 
$
29,807

 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 

 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$
582

 
$
57

 
$
2,057

 
$
(1,327
)
 
$
1,369

Short-term debt and current portion of long-term debt
 
569

 
275

 

 

 
844

Fiduciary liabilities
 

 

 
12,071

 

 
12,071

Current intercompany payables
 
378

 
14,633

 
1,420

 
(16,431
)
 

Other current liabilities
 

 
78

 
1,119

 

 
1,197

Total current liabilities
 
1,529

 
15,043

 
16,667

 
(17,758
)
 
15,481

Long-term debt
 
4,234

 
2,506

 

 

 
6,740

Non-current operating lease liabilities
 

 
149

 
813

 

 
962

Deferred tax liabilities
 

 

 
353

 
(142
)
 
211

Pension, other postretirement, and postemployment liabilities
 

 
1,232

 
344

 

 
1,576

Non-current intercompany payables
 

 
7,366

 
499

 
(7,865
)
 

Other non-current liabilities
 
3

 
106

 
815

 

 
924

Total liabilities
 
5,766

 
26,402

 
19,491

 
(25,765
)
 
25,894

 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
3,836

 
(424
)
 
29,084

 
(28,660
)
 
3,836

Noncontrolling interests
 

 

 
77

 

 
77

Total equity
 
3,836

 
(424
)
 
29,161

 
(28,660
)
 
3,913

Total liabilities and equity
 
$
9,602

 
$
25,978

 
$
48,652

 
$
(54,425
)
 
$
29,807

Condensed Consolidating Statement of Financial Position
 
 
As of December 31, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Assets
 
 

 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
862

 
$
575

 
$
(781
)
 
$
656

Short-term investments
 

 
56

 
116

 

 
172

Receivables, net
 

 

 
2,760

 

 
2,760

Fiduciary assets
 

 

 
10,166

 

 
10,166

Current intercompany receivables
 
191

 
897

 
11,634

 
(12,722
)
 

Other current assets
 

 
16

 
602

 

 
618

Total current assets
 
191

 
1,831

 
25,853

 
(13,503
)
 
14,372

Goodwill
 

 

 
8,171

 

 
8,171

Intangible assets, net
 

 

 
1,149

 

 
1,149

Fixed assets, net
 

 

 
588

 

 
588

Operating lease right-of-use assets
 

 

 

 

 

Deferred tax assets
 
94

 
467

 
144

 
(144
)
 
561

Prepaid pension
 

 
5

 
1,128

 

 
1,133

Non-current intercompany receivables
 
403

 
261

 
7,225

 
(7,889
)
 

Other non-current assets
 
1

 
30

 
417

 

 
448

Investment in subsidiary
 
8,433

 
19,132

 
(882
)
 
(26,683
)
 

Total assets
 
$
9,122

 
$
21,726

 
$
43,793

 
$
(48,219
)
 
$
26,422

 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 

 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$
274

 
$
70

 
$
2,380

 
$
(781
)
 
$
1,943

Short-term debt and current portion of long-term debt
 
250

 

 
1

 

 
251

Fiduciary liabilities
 

 

 
10,166

 

 
10,166

Current intercompany payables
 
213

 
11,875

 
634

 
(12,722
)
 

Other current liabilities
 

 
69

 
867

 

 
936

Total current liabilities
 
737

 
12,014

 
14,048

 
(13,503
)
 
13,296

Long-term debt
 
4,231

 
1,762

 

 

 
5,993

Non-current operating lease liabilities
 

 

 

 

 

Deferred tax liabilities
 

 

 
325

 
(144
)
 
181

Pension, other postretirement, and postemployment liabilities
 

 
1,275

 
361

 

 
1,636

Non-current intercompany payables
 

 
7,390

 
499

 
(7,889
)
 

Other non-current liabilities
 
3

 
167

 
927

 

 
1,097

Total liabilities
 
4,971

 
22,608

 
16,160

 
(21,536
)
 
22,203

 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
4,151

 
(882
)
 
27,565

 
(26,683
)
 
4,151

Noncontrolling interests
 

 

 
68

 

 
68

Total equity
 
4,151

 
(882
)
 
27,633

 
(26,683
)
 
4,219

Total liabilities and equity
 
$
9,122

 
$
21,726

 
$
43,793

 
$
(48,219
)
 
$
26,422


Condensed Consolidating Statements of Cash Flows
Condensed Consolidating Statement of Cash Flows
 
 
Six Months Ended June 30, 2019
(millions)
 
Aon plc
 
Aon
Corporation
 
Other
Non-Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$
366

 
$
(110
)
 
$
690

 
$
(585
)
 
$
361

 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 
9

 
5

 

 
14

Payments for investments
 

 
(19
)
 
(41
)
 

 
(60
)
Net sales (purchases) of short-term investments - non-fiduciary
 

 
(69
)
 
7

 

 
(62
)
Acquisition of businesses, net of cash acquired
 

 

 
(15
)
 

 
(15
)
Sale of businesses, net of cash sold
 

 

 
7

 

 
7

Capital expenditures
 

 

 
(106
)
 

 
(106
)
Cash provided by (used for) investing activities
 

 
(79
)
 
(143
)
 

 
(222
)
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(1,155
)
 

 

 

 
(1,155
)
Advances from (to) affiliates
 
823

 
(320
)
 
(542
)
 
39

 

Issuance of shares for employee benefit plans
 
(144
)
 

 

 

 
(144
)
Issuance of debt
 
1,219

 
2,340

 

 

 
3,559

Repayment of debt
 
(906
)
 
(1,322
)
 

 

 
(2,228
)
Cash dividends to shareholders
 
(203
)
 

 

 

 
(203
)
Noncontrolling interests and other financing activities
 

 

 
(61
)
 

 
(61
)
Cash provided by (used for) financing activities
 
(366
)
 
698

 
(603
)
 
39

 
(232
)
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 

 

 
18

 

 
18

Net increase (decrease) in cash and cash equivalents
 

 
509

 
(38
)
 
(546
)
 
(75
)
Cash and cash equivalents at beginning of period
 

 
862

 
575

 
(781
)
 
656

Cash and cash equivalents at end of period
 
$

 
$
1,371

 
$
537

 
$
(1,327
)
 
$
581


Condensed Consolidating Statement of Cash Flows
 
 
Six Months Ended June 30, 2018
(millions)
 
Aon plc
 
Aon
Corporation
 
Other
Non-Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$
(126
)
 
$
582

 
$
759

 
$
(802
)
 
$
413

 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 
13

 
10

 

 
23

Payments for investments
 
(12
)
 
(17
)
 
(19
)
 
12

 
(36
)
Net sales (purchases) of short-term investments - non-fiduciary
 

 
296

 
56

 

 
352

Acquisition of businesses, net of cash acquired
 

 

 
(50
)
 

 
(50
)
Sale of businesses, net of cash sold
 

 

 
1

 

 
1

Capital expenditures
 

 

 
(111
)
 

 
(111
)
Cash provided by (used for) investing activities
 
(12
)
 
292

 
(113
)
 
12

 
179

 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(971
)
 

 

 

 
(971
)
Advances from (to) affiliates
 
965

 
(810
)
 
(395
)
 
240

 

Issuance of shares for employee benefit plans
 
(150
)
 

 

 

 
(150
)
Issuance of debt
 
752

 
1,800

 

 

 
2,552

Repayment of debt
 
(272
)
 
(1,461
)
 
(294
)
 

 
(2,027
)
Cash dividends to shareholders
 
(187
)
 

 

 

 
(187
)
Noncontrolling interests and other financing activities
 

 

 
(15
)
 

 
(15
)
Cash provided by (used for) financing activities
 
137

 
(471
)
 
(704
)
 
240

 
(798
)
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 

 

 
(63
)
 

 
(63
)
Net increase (decrease) in cash and cash equivalents
 
(1
)
 
403

 
(121
)
 
(550
)
 
(269
)
Cash and cash equivalents at beginning of period
 
1

 
2,524

 
793

 
(2,562
)
 
756

Cash and cash equivalents at end of period
 
$

 
$
2,927

 
$
672

 
$
(3,112
)
 
$
487


v3.19.2
Lease Commitments - (Tables)
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Assets And Liabilities Of Lessee
The classification of operating and finance lease asset and liability balances within the Condensed Consolidated Statements of Financial Position is as follows (in millions):
As of
 
June 30, 2019
Assets
 
 
Operating lease assets
Operating lease right-of-use assets
$
959

Finance lease assets
Other non-current assets
65

Total lease assets
 
$
1,024

 
 
 
Liabilities
 
 
Current lease liabilities
 
 
   Operating
Other current liabilities
$
199

   Finance
Other current liabilities
27

Non-current lease liabilities
 
 
   Operating
Non-current operating lease liabilities
962

   Finance
Other non-current liabilities
37

Total lease liabilities
 
$
1,225


Lease, Cost
Weighted average remaining lease term and discount rate related to operating and finance leases are as follows:
As of
June 30,
 2019
Weighted average remaining lease term (years)
 
   Operating leases
8.0

   Finance leases
2.5

Weighted average discount rate
 
   Operating leases
3.3
%
   Finance leases
2.4
%

Other cash and non-cash related activities are as follows (in millions):
 
Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
 
   Operating cash flows for operating leases
$
116

Non-cash related activities
 
ROU assets obtained in exchange for new operating lease liabilities
$
50




The components of lease costs are as follows (in millions):
 
Three Months Ended June 30, 2019
 
Six Months Ended June 30, 2019
Operating lease cost
$
65

 
$
133

Finance lease costs
 
 
 
   Amortization of leased assets
6

 
13

   Interest on lease liabilities

 
1

Variable lease cost
12

 
18

Short-term lease cost (1)
1

 
2

Sublease income
(8
)
 
(16
)
Net lease cost
$
76

 
$
151

(1) Short-term lease cost does not include expenses related to leases with a lease term of one month or less.
Lessee Operating Lease Liability Maturity
Maturity analysis of operating and finance leases as of June 30, 2019 are as follows (in millions):
 
Operating
 
Finance
 
Less:
 
 
 
Leases
 
Leases
 
Subleases
 
Total
Remainder of 2019
$
127

 
$
14

 
$
(17
)
 
$
124

2020
248

 
28

 
(34
)
 
242

2021
224

 
22

 
(33
)
 
213

2022
198

 
2

 
(34
)
 
166

2023
144

 

 
(15
)
 
129

Thereafter
511

 

 
(8
)
 
503

Total undiscounted future minimum lease payments
$
1,452

 
$
66

 
$
(141
)
 
$
1,377

Less: Imputed interest
(151
)
 
(1
)
 

 
(152
)
Present value of lease liabilities
$
1,301

 
$
65

 
$
(141
)
 
$
1,225

At December 31, 2018, future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows (in millions):
Year Ended December 31, 2018
Gross rental commitments
 
Rentals from subleases
 
Net rental commitments
2019
$
303

 
$
(34
)
 
$
269

2020
253

 
(30
)
 
223

2021
221

 
(30
)
 
191

2022
182

 
(30
)
 
152

2023
148

 
(12
)
 
136

Thereafter
472

 
(5
)
 
467

Total minimum payments required
$
1,579

 
$
(141
)
 
$
1,438


Finance Lease, Liability, Maturity
Maturity analysis of operating and finance leases as of June 30, 2019 are as follows (in millions):
 
Operating
 
Finance
 
Less:
 
 
 
Leases
 
Leases
 
Subleases
 
Total
Remainder of 2019
$
127

 
$
14

 
$
(17
)
 
$
124

2020
248

 
28

 
(34
)
 
242

2021
224

 
22

 
(33
)
 
213

2022
198

 
2

 
(34
)
 
166

2023
144

 

 
(15
)
 
129

Thereafter
511

 

 
(8
)
 
503

Total undiscounted future minimum lease payments
$
1,452

 
$
66

 
$
(141
)
 
$
1,377

Less: Imputed interest
(151
)
 
(1
)
 

 
(152
)
Present value of lease liabilities
$
1,301

 
$
65

 
$
(141
)
 
$
1,225

At December 31, 2018, future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows (in millions):
Year Ended December 31, 2018
Gross rental commitments
 
Rentals from subleases
 
Net rental commitments
2019
$
303

 
$
(34
)
 
$
269

2020
253

 
(30
)
 
223

2021
221

 
(30
)
 
191

2022
182

 
(30
)
 
152

2023
148

 
(12
)
 
136

Thereafter
472

 
(5
)
 
467

Total minimum payments required
$
1,579

 
$
(141
)
 
$
1,438


Lessor, Operating Lease, Payments to be Received, Maturity
Maturity analysis of operating and finance leases as of June 30, 2019 are as follows (in millions):
 
Operating
 
Finance
 
Less:
 
 
 
Leases
 
Leases
 
Subleases
 
Total
Remainder of 2019
$
127

 
$
14

 
$
(17
)
 
$
124

2020
248

 
28

 
(34
)
 
242

2021
224

 
22

 
(33
)
 
213

2022
198

 
2

 
(34
)
 
166

2023
144

 

 
(15
)
 
129

Thereafter
511

 

 
(8
)
 
503

Total undiscounted future minimum lease payments
$
1,452

 
$
66

 
$
(141
)
 
$
1,377

Less: Imputed interest
(151
)
 
(1
)
 

 
(152
)
Present value of lease liabilities
$
1,301

 
$
65

 
$
(141
)
 
$
1,225

At December 31, 2018, future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows (in millions):
Year Ended December 31, 2018
Gross rental commitments
 
Rentals from subleases
 
Net rental commitments
2019
$
303

 
$
(34
)
 
$
269

2020
253

 
(30
)
 
223

2021
221

 
(30
)
 
191

2022
182

 
(30
)
 
152

2023
148

 
(12
)
 
136

Thereafter
472

 
(5
)
 
467

Total minimum payments required
$
1,579

 
$
(141
)
 
$
1,438


v3.19.2
Accounting Principles and Practices - (Narrative) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Operating lease right-of-use assets $ 959  
Present value of lease liabilities $ 1,301  
Accounting Standards Update 2016-02    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Operating lease right-of-use assets   $ 1,100
Present value of lease liabilities   $ 1,300
v3.19.2
Accounting Principles and Practices - Schedule of Changes to Balance Sheet for New Accounting Standards (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Jan. 01, 2019
Dec. 31, 2018
Assets      
Operating lease right-of-use assets $ 959    
Other non-current assets 521   $ 448
Liabilities      
Other current liabilities 1,197   936
Non-current operating lease liabilities 962    
Other non-current liabilities $ 924   $ 1,097
Accounting Standards Update 2016-02      
Assets      
Operating lease right-of-use assets   $ 1,100  
Operating lease right-of-use assets      
Assets      
Operating lease right-of-use assets   1,021  
Operating lease right-of-use assets | Accounting Standards Update 2016-02      
Assets      
Operating lease right-of-use assets   1,021  
Other non-current assets      
Assets      
Other non-current assets   526  
Other non-current assets | Accounting Standards Update 2016-02      
Assets      
Other non-current assets   78  
Other current liabilities      
Liabilities      
Other current liabilities   1,155  
Other current liabilities | Accounting Standards Update 2016-02      
Liabilities      
Other current liabilities   219  
Non-current operating lease liabilities      
Liabilities      
Non-current operating lease liabilities   1,014  
Non-current operating lease liabilities | Accounting Standards Update 2016-02      
Liabilities      
Non-current operating lease liabilities   1,014  
Other non-current liabilities      
Liabilities      
Other non-current liabilities   963  
Other non-current liabilities | Accounting Standards Update 2016-02      
Liabilities      
Other non-current liabilities   $ (134)  
v3.19.2
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Disaggregation of Revenue [Line Items]        
Total revenue $ 2,606 $ 2,561 $ 5,749 $ 5,651
United States        
Disaggregation of Revenue [Line Items]        
Total revenue 1,146 1,125 2,307 2,241
Americas other than United States        
Disaggregation of Revenue [Line Items]        
Total revenue 241 243 467 480
United Kingdom        
Disaggregation of Revenue [Line Items]        
Total revenue 400 413 852 897
Europe, Middle East, & Africa other than United Kingdom        
Disaggregation of Revenue [Line Items]        
Total revenue 501 493 1,510 1,472
Asia Pacific        
Disaggregation of Revenue [Line Items]        
Total revenue 318 287 613 561
Operating Segments | Commercial Risk Solutions        
Disaggregation of Revenue [Line Items]        
Total revenue 1,167 1,166 2,285 2,350
Operating Segments | Reinsurance Solutions        
Disaggregation of Revenue [Line Items]        
Total revenue 420 380 1,208 1,122
Operating Segments | Retirement Solutions        
Disaggregation of Revenue [Line Items]        
Total revenue 419 431 839 855
Operating Segments | Health Solutions        
Disaggregation of Revenue [Line Items]        
Total revenue 317 309 803 760
Operating Segments | Data & Analytic Services        
Disaggregation of Revenue [Line Items]        
Total revenue 286 277 622 571
Elimination        
Disaggregation of Revenue [Line Items]        
Total revenue $ (3) $ (2) $ (8) $ (7)
v3.19.2
Revenue from Contracts with Customers - Contract Assets Rollforward (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Capitalized Cost To Fulfill Customer Contracts        
Change in Capitalized Contract Costs        
Balance at beginning of period $ 236 $ 240 $ 329 $ 298
Additions 336 341 682 711
Amortization (357) (353) (796) (785)
Impairment 0 0 0 0
Foreign currency and other 1 (12) 1 (8)
Balance at end of period 216 216 216 216
Capitalized Cost To Obtain Customer Contracts        
Change in Capitalized Contract Costs        
Balance at beginning of period 155 144 156 145
Additions 17 13 26 21
Amortization (11) (11) (22) (21)
Impairment 0 0 0 0
Foreign currency and other 0 (2) 1 (1)
Balance at end of period $ 161 $ 144 $ 161 $ 144
v3.19.2
Cash and Cash Equivalents and Short-term Investments (Details)
£ in Millions, $ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2019
GBP (£)
Jun. 30, 2019
USD ($)
Dec. 31, 2018
GBP (£)
Dec. 31, 2018
USD ($)
Cash, Cash Equivalents, and Short-term Investments [Abstract]          
Cash and cash equivalents and short-term investments     $ 816.0   $ 828.0
Cash and cash equivalents and short term investments, period increase (decrease) $ (12.0)        
Restricted cash and investments     99.0   91.0
Operating funds in U.K.   £ 42.8 $ 54.3 £ 42.7 $ 53.9
v3.19.2
Other Financial Data - Schedule of Other Income (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Other (Expense) Income        
Foreign currency remeasurement $ 11,000,000 $ 29,000,000 $ 0 $ 13,000,000
Disposal of businesses 2,000,000 0 7,000,000 (1,000,000)
Pension and other postretirement 5,000,000 (7,000,000) 9,000,000 (5,000,000)
Equity earnings 1,000,000 1,000,000 2,000,000 2,000,000
Financial instruments (13,000,000) (27,000,000) (12,000,000) (27,000,000)
Other 0 1,000,000 0 0
Total $ 6,000,000 $ (3,000,000) $ 6,000,000 $ (18,000,000)
v3.19.2
Other Financial Data - Schedule of Allowance for Doubtful Accounts (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Accounts Receivable, Allowance for Credit Loss [Roll Forward]        
Balance at beginning of period $ 64 $ 65 $ 64 $ 59
Provision charged to Other general expenses 4 3 12 11
Accounts written off, net of recoveries (3) (6) (11) (8)
Balance at end of period $ 65 $ 62 $ 65 $ 62
v3.19.2
Other Financial Data - Schedule of Other Current Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Other Financial Data [Abstract]    
Cost to fulfill contracts with customers $ 216 $ 329
Prepaid expenses 128 97
Taxes receivable 145 113
Other 142 79
Total $ 631 618
Receivables from divested business   $ 12
v3.19.2
Other Financial Data - Schedule of Other Non-current Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Other Financial Data [Abstract]    
Cost to obtain contracts with customers $ 161 $ 156
Taxes receivable 100 100
Finance lease assets 65  
Investments 54 54
Other 141 138
Total $ 521 $ 448
v3.19.2
Other Financial Data - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Other Financial Data [Abstract]          
Deferred revenue $ 337   $ 337   $ 251
Leases 223   223    
Taxes payable 133   133   83
Other 504   504   602
Total 1,197   1,197   $ 936
Revenue recognized from deferred revenue $ 95 $ 115 $ 241 $ 215  
v3.19.2
Other Financial Data - Schedule of Other Non-current Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Other Financial Data [Abstract]    
Taxes payable $ 576 $ 585
Leases 37 169
Deferred revenue 59 65
Compensation and benefits 49 56
Other 203 222
Total 924 1,097
Noncurrent portion of transition tax $ 221 $ 240
v3.19.2
Discontinued Operations (Details) - Tempo Business
May 01, 2017
USD ($)
agreement
Jun. 30, 2019
USD ($)
Dispositions    
Number of commercial agreements | agreement 2  
Discontinued Operations, Disposed of by Sale    
Dispositions    
Purchase price $ 4,300,000,000  
Cash and cash equivalents from discontinued operations   $ 0
Maximum | Discontinued Operations, Disposed of by Sale    
Dispositions    
Purchase price 4,200,000,000  
Deferred consideration $ 500,000,000  
v3.19.2
Discontinued Operations Income Statement (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Expenses        
Net income from discontinued operations $ 0 $ 1 $ 0 $ 7
Tempo Business | Discontinued Operations, Disposed of by Sale        
Expenses        
Total operating expenses 1 0 1 3
Loss from discontinued operations before income taxes (1) 0 (1) (3)
Income tax benefit (1) 0 (1) (1)
Net loss from discontinued operations excluding gain 0 0 0 (2)
Gain on sale of discontinued operations, net of tax 0 1 0 9
Net income from discontinued operations $ 0 $ 1 $ 0 $ 7
v3.19.2
Restructuring - Narrative (Details) - 2017 Plan
$ in Millions
3 Months Ended 6 Months Ended 30 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
job_elimination
Jun. 30, 2019
USD ($)
job_elimination
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 125 $ 204  
Expected total cost 1,350 1,350 $ 1,350
Number of positions eliminated to date | job_elimination     5,091
Costs incurred 127 218 $ 1,200
Workforce reduction      
Restructuring Cost and Reserve [Line Items]      
Expected total cost 530 530 530
Costs incurred 78 102 516
Technology rationalization      
Restructuring Cost and Reserve [Line Items]      
Expected total cost 130 130 130
Costs incurred 4 15 95
Lease consolidation      
Restructuring Cost and Reserve [Line Items]      
Expected total cost 80 80 80
Costs incurred 5 14 50
Asset impairments      
Restructuring Cost and Reserve [Line Items]      
Expected total cost 45 45 45
Costs incurred 2 2 41
Other Restructuring      
Restructuring Cost and Reserve [Line Items]      
Expected total cost 565 565 565
Costs incurred $ 38 $ 85 $ 498
Minimum      
Restructuring Cost and Reserve [Line Items]      
Expected number of positions eliminated | job_elimination   5,000  
Maximum      
Restructuring Cost and Reserve [Line Items]      
Expected number of positions eliminated | job_elimination   5,600  
v3.19.2
Restructuring - Schedule of Restructuring and Related Expenses (Details) - 2017 Plan
$ in Millions
3 Months Ended 6 Months Ended 30 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Restructuring Cost and Reserve [Line Items]      
Costs incurred $ 127 $ 218 $ 1,200
Estimated Remaining Costs 150 150 150
Expected total cost 1,350 1,350 1,350
Expected non-cash expense 100 100 100
Workforce reduction      
Restructuring Cost and Reserve [Line Items]      
Costs incurred 78 102 516
Estimated Remaining Costs 14 14 14
Expected total cost 530 530 530
Technology rationalization      
Restructuring Cost and Reserve [Line Items]      
Costs incurred 4 15 95
Estimated Remaining Costs 35 35 35
Expected total cost 130 130 130
Contract termination costs incurred 2 3 9
Expected contract termination cost remaining 15 15 15
Lease consolidation      
Restructuring Cost and Reserve [Line Items]      
Costs incurred 5 14 50
Estimated Remaining Costs 30 30 30
Expected total cost 80 80 80
Contract termination costs incurred 4 13 46
Expected contract termination cost remaining 80 80 80
Asset impairments      
Restructuring Cost and Reserve [Line Items]      
Costs incurred 2 2 41
Estimated Remaining Costs 4 4 4
Expected total cost 45 45 45
Other costs associated with restructuring and separation      
Restructuring Cost and Reserve [Line Items]      
Costs incurred 38 85 498
Estimated Remaining Costs 67 67 67
Expected total cost 565 565 565
Contract termination costs incurred 1 3 91
Expected contract termination cost remaining $ 95 $ 95 $ 95
v3.19.2
Restructuring - Schedule of Restructuring Reserve (Details) - 2017 Plan - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Restructuring Plan    
Balance as of December 31, 2018   $ 201
Expensed $ 125 204
Cash payments   (222)
Foreign currency translation   1
Balance as of June 30, 2019 $ 184 $ 184
v3.19.2
Acquisitions and Dispositions of Businesses - Acquisitions (Details)
$ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
acquisition
Jun. 30, 2018
acquisition
Dec. 31, 2018
USD ($)
Business Acquisition      
Number of business acquired under business combination | acquisition 1 5  
Assets acquired      
Goodwill $ 8,198   $ 8,171
2019 Acquisitions      
Business Combination, Consideration Transferred [Abstract]      
Consideration Transferred 17    
Deferred and contingent consideration 5    
Aggregate consideration transferred 22    
Assets acquired      
Cash and cash equivalents 2    
Goodwill 15    
Intangible assets, net 9    
Other assets 4    
Total assets acquired 30    
Liabilities assumed      
Current liabilities 6    
Other non-current liabilities 2    
Total liabilities assumed 8    
Net assets acquired $ 22    
v3.19.2
Acquisitions and Dispositions of Businesses - Dispositions (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2019
USD ($)
disposal
Jun. 30, 2018
USD ($)
disposal
Jun. 30, 2019
USD ($)
disposal
Jun. 30, 2018
USD ($)
disposal
Dispositions        
Disposal of businesses | $ $ 2,000,000 $ 0 $ 7,000,000 $ (1,000,000)
Disposal Group, Not Discontinued Operations        
Dispositions        
Number of dispositions | disposal 3 1 4 1
v3.19.2
- Goodwill and Other Intangible Assets Rollforward (Details)
$ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
Changes in the net carrying amount of goodwill by operating segment  
Beginning balance $ 8,171
Goodwill related to current year acquisitions 15
Goodwill related to disposals (9)
Goodwill related to prior year acquisitions 2
Foreign currency translation and other 19
Ending balance $ 8,198
v3.19.2
- Goodwill and Other Intangible Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Intangible assets with finite lives    
Gross Carrying Amount $ 3,667 $ 3,658
Accumulated Amortization and Impairment 2,694 2,509
Net Carrying Amount 973 1,149
Estimated amortization for intangible assets    
Remainder of 2019 192  
2020 223  
2021 128  
2022 87  
2023 74  
2024 58  
Thereafter 211  
Total 973  
Customer related and contract based    
Intangible assets with finite lives    
Gross Carrying Amount 2,254 2,240
Accumulated Amortization and Impairment 1,517 1,444
Net Carrying Amount 737 796
Tradenames    
Intangible assets with finite lives    
Gross Carrying Amount 1,028 1,027
Accumulated Amortization and Impairment 847 740
Net Carrying Amount 181 287
Technology and other    
Intangible assets with finite lives    
Gross Carrying Amount 385 391
Accumulated Amortization and Impairment 330 325
Net Carrying Amount $ 55 $ 66
v3.19.2
Debt - Narrative (Details)
Jun. 30, 2019
USD ($)
credit_facility
Jun. 30, 2019
EUR (€)
credit_facility
May 02, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 03, 2018
USD ($)
Mar. 08, 2018
USD ($)
Mar. 08, 2018
CAD ($)
Debt Instrument [Line Items]              
Short-term debt and current portion of long-term debt $ 844,000,000     $ 251,000,000      
Number of credit facilities | credit_facility 2 2          
3.75% Senior Notes Due May 2, 2029 | Senior Notes              
Debt Instrument [Line Items]              
Debt face value     $ 750,000,000        
Debt interest rate percentage (as a percent) 3.75% 3.75% 3.75%        
4.500% Senior Notes Due December 2028 | Senior Notes              
Debt Instrument [Line Items]              
Debt face value         $ 350,000,000    
Debt interest rate percentage (as a percent) 4.50% 4.50%     4.50%    
4.76% Senior Notes Due March 2018 | Senior Notes              
Debt Instrument [Line Items]              
Debt interest rate percentage (as a percent)           4.76% 4.76%
Short-term debt and current portion of long-term debt           $ 291,000,000 $ 375,000,000
Foreign Line of Credit | 2020 Facility | Line of Credit              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity $ 900,000,000            
Credit Facility Expiring October 2022              
Debt Instrument [Line Items]              
Borrowings 0            
Credit Facility Expiring October 2022 | Line of Credit              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity 400,000,000            
Commercial paper | Commercial Paper Programs              
Debt Instrument [Line Items]              
Line of credit facility, current borrowing capacity 1,300,000,000            
United States | Commercial paper | Commercial Paper Programs              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity $ 600,000,000            
Europe | Commercial paper | Commercial Paper Programs              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity | €   € 525,000,000          
v3.19.2
Debt - Schedule of Commercial Paper (Details) - Commercial paper - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Debt Instrument [Line Items]          
Commercial paper outstanding $ 843   $ 843   $ 250
Weighted average commercial paper outstanding $ 639 $ 744 $ 482 $ 437  
Weighted average interest rate of commercial paper outstanding 0.70% 0.92% 0.63% 0.85%  
v3.19.2
Income Taxes (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]        
Effective income tax rate 16.30% 165.50% 15.90% (4.80%)
v3.19.2
Shareholders' Equity (Details) - USD ($)
3 Months Ended 6 Months Ended 87 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Feb. 28, 2017
Nov. 30, 2014
Apr. 30, 2012
Common Stock Programs                    
Shares purchased (in shares)             124,600,000      
Total cost of shares purchased $ 1,056,000,000 $ 101,000,000 $ 402,000,000 $ 553,000,000     $ 12,200,000,000      
Weighted average shares outstanding                    
Basic weighted average ordinary shares outstanding (in shares) 240,600,000   246,000,000.0   241,400,000 247,200,000        
Dilutive effect of potentially issuable shares (in shares) 2,200,000   1,400,000   1,800,000 1,600,000        
Diluted weighted average ordinary shares outstanding (in shares) 242,800,000   247,400,000   243,200,000 248,800,000        
Number of shares excluded from the calculation of diluted earnings per share (in shares) 0   0   0 0        
Share Repurchase Program of 2014                    
Common Stock Programs                    
Share repurchase authorization limit (up to) $ 15,000,000,000.0       $ 15,000,000,000.0   15,000,000,000.0 $ 5,000,000,000.0 $ 5,000,000,000.0  
Share repurchase, remaining authorization limit (in shares) $ 2,800,000,000       $ 2,800,000,000   $ 2,800,000,000      
2012 - Share Repurchase Program                    
Common Stock Programs                    
Share repurchase authorization limit (up to)                   $ 5,000,000,000.0
Shares purchased (in shares) 5,800,000   2,800,000   6,400,000 6,700,000        
Total cost of shares purchased $ 1,050,000,000   $ 400,000,000   $ 1,150,000,000 $ 950,000,000        
v3.19.2
Shareholders' Equity - Schedule of Stock Repurchases (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 6 Months Ended 87 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Class of Stock [Line Items]              
Shares purchased (in shares)             124.6
Total repurchase cost $ 1,056 $ 101 $ 402 $ 553     $ 12,200
2012 - Share Repurchase Program              
Class of Stock [Line Items]              
Shares purchased (in shares) 5.8   2.8   6.4 6.7  
Average price per share of stock repurchased (in dollars per share) $ 183.23   $ 141.23   $ 181.07 $ 141.06  
Total repurchase cost $ 1,050   $ 400   $ 1,150 $ 950  
Additional associated costs 6   2   7 5  
Total repurchase and associated costs $ 1,056   $ 402   $ 1,157 $ 955  
v3.19.2
Shareholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning Balance $ 4,862 $ 5,385 $ 4,219 $ 5,140
Other comprehensive income (loss) before reclassifications, net     25  
Amounts reclassified from accumulated other comprehensive income:        
Amounts reclassified from accumulated other comprehensive income     60  
Tax expense     (13)  
Amounts reclassified from accumulated other comprehensive income, net     47  
Total other comprehensive income (loss) attributable to Aon shareholders (97) (333) 72 (27)
Ending Balance 3,913 $ 4,618 3,913 $ 4,618
Total        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning Balance     (3,909)  
Amounts reclassified from accumulated other comprehensive income:        
Ending Balance (3,837)   (3,837)  
Change in Fair Value of Financial Instruments        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning Balance     (15)  
Other comprehensive income (loss) before reclassifications, net     (8)  
Amounts reclassified from accumulated other comprehensive income:        
Amounts reclassified from accumulated other comprehensive income     8  
Tax expense     (1)  
Amounts reclassified from accumulated other comprehensive income, net     7  
Total other comprehensive income (loss) attributable to Aon shareholders     (1)  
Ending Balance (16)   (16)  
Foreign Currency Translation Adjustments        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning Balance     (1,319)  
Other comprehensive income (loss) before reclassifications, net     28  
Amounts reclassified from accumulated other comprehensive income:        
Amounts reclassified from accumulated other comprehensive income     0  
Tax expense     0  
Amounts reclassified from accumulated other comprehensive income, net     0  
Total other comprehensive income (loss) attributable to Aon shareholders     28  
Ending Balance (1,291)   (1,291)  
Postretirement Benefit Obligation        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning Balance     (2,575)  
Other comprehensive income (loss) before reclassifications, net     5  
Amounts reclassified from accumulated other comprehensive income:        
Amounts reclassified from accumulated other comprehensive income     52  
Tax expense     (12)  
Amounts reclassified from accumulated other comprehensive income, net     40  
Total other comprehensive income (loss) attributable to Aon shareholders     45  
Ending Balance $ (2,530)   $ (2,530)  
v3.19.2
Employee Benefits (Details)
£ in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2018
GBP (£)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
GBP (£)
Jun. 30, 2018
USD ($)
U.K.            
Defined Benefit Plan Disclosure            
Service cost $ 0   $ 0 $ 0   $ 0
Interest cost 27   29 55   58
Expected return on plan assets, net of administration expenses (48)   (50) (97)   (101)
Amortization of prior-service cost 0   0 1   0
Amortization of net actuarial loss 8   7 15   15
Net periodic (benefit) cost (13)   (14) (26)   (28)
Loss on pension settlement 0   16 0   23
Total net periodic (benefit) cost (13)   2 (26)   (5)
Payment for settlement         £ 99 132
Benefit obligation period increase (decrease)   £ (87) (115)      
Benefit obligation, (increase) decrease for settlement   £ 12 16   £ 17 23
Estimate of contributions to defined benefit pension plans for the current fiscal year 80     80    
Contributions made to defined benefit pension plans 23   25 46   48
U.S.            
Defined Benefit Plan Disclosure            
Service cost 0   0 0   0
Interest cost 27   25 54   50
Expected return on plan assets, net of administration expenses (34)   (36) (68)   (72)
Amortization of prior-service cost 0   1 1   1
Amortization of net actuarial loss 14   15 27   30
Net periodic (benefit) cost 7   5 14   9
Loss on pension settlement 0   0 0   0
Total net periodic (benefit) cost 7   5 14   9
Estimate of contributions to defined benefit pension plans for the current fiscal year 46     46    
Contributions made to defined benefit pension plans 6   8 23   25
Other            
Defined Benefit Plan Disclosure            
Service cost 0   0 0   0
Interest cost 7   7 14   14
Expected return on plan assets, net of administration expenses (10)   (11) (20)   (23)
Amortization of prior-service cost 0   0 0   0
Amortization of net actuarial loss 3   3 6   6
Net periodic (benefit) cost 0   (1) 0   (3)
Loss on pension settlement 0   0 0   0
Total net periodic (benefit) cost 0   (1) 0   (3)
Estimate of contributions to defined benefit pension plans for the current fiscal year 19     19    
Contributions made to defined benefit pension plans $ 3   $ 3 $ 10   $ 11
v3.19.2
Share-Based Compensation Plans - Share-based compensation expenses recognized (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total share-based compensation expense $ 91 $ 70 $ 180 $ 147
Restricted share units (“RSUs”)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total share-based compensation expense 50 46 113 104
Performance share awards (“PSAs”)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total share-based compensation expense 39 23 62 39
Employee share purchase plans        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total share-based compensation expense $ 2 $ 1 $ 5 $ 4
v3.19.2
Share-Based Compensation Plans - Restricted share unit activity (Details) - Restricted share units (“RSUs”) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Non-vested share awards (in shares)      
Non-vested at beginning of period (in shares) 4,208 4,849 4,849
Granted (in shares) 1,178 1,352  
Vested (in shares) (1,451) (1,664)  
Forfeited (in shares) (97) (109)  
Non-vested at end of period (in shares) 3,838 4,428 4,208
Weighted Average Fair value      
Non-vested at beginning of period (in dollars per share) $ 120 $ 104 $ 104
Granted (in dollars per share) 173 140  
Vested (in dollars per share) 113 98  
Forfeited (in dollars per share) 124 109  
Non-vested at end of period (in dollars per share) $ 139 $ 117 $ 120
Unamortized deferred compensation expense $ 426    
Remaining weighted-average amortization period (in years) 2 years 1 month 6 days    
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 3 years    
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 5 years    
v3.19.2
Share-Based Compensation Plans - Performance Share Awards Narrative (Details) - Performance Shares
6 Months Ended
Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting conditions period (in years) 3 years
Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares issued, percent 0.00%
Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares issued, percent 200.00%
v3.19.2
Share-Based Compensation Plans - Schedule of Performance-based plans (Details) - Performance Shares - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Target PSAs granted during period (in shares) 467 564 548
Weighted average fair value per share at date of grant (in dollars per share) $ 164 $ 134 $ 114
Number of shares that would be issued based on current performance levels (in shares) 464 970 1,066
Unamortized expense, based on current performance levels $ 69 $ 67 $ 20
v3.19.2
Derivatives and Hedging - Foreign Exchange Risk Management Narrative (Details)
6 Months Ended
Jun. 30, 2019
Cash Flow Hedging  
Derivative [Line Items]  
Foreign currency exposures, maximum average hedging period (less than) 2 years
Not Designated as Hedging Instrument  
Derivative [Line Items]  
Foreign currency exposures, maximum hedging period (up to) 1 year
v3.19.2
Derivatives and Hedging - Notional and fair values of derivative instruments (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Dec. 31, 2018
Derivatives, Fair Value    
Notional Amount $ 873 $ 915
Derivative Assets 19 18
Derivative Liabilities $ 1 8
Term of derivative contract 30 days  
Other Current Assets    
Derivatives, Fair Value    
Derivative Assets $ 8 3
Other non-current assets    
Derivatives, Fair Value    
Derivative Assets 11 15
Other current liabilities    
Derivatives, Fair Value    
Derivative Liabilities 1 5
Other non-current liabilities    
Derivatives, Fair Value    
Derivative Liabilities   3
Derivatives accounted for as hedges | Gross foreign exchange contracts    
Derivatives, Fair Value    
Notional Amount 588 646
Derivative Assets 14 17
Derivative Liabilities 1 2
Not Designated as Hedging Instrument | Gross foreign exchange contracts    
Derivatives, Fair Value    
Notional Amount 285 269
Derivative Assets 5 1
Derivative Liabilities $ 0 $ 6
v3.19.2
Derivatives and Hedging - Schedule of amounts of derivative gains (losses) recognized in the Consolidated Financial Statements (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Derivative [Line Items]        
Gain (loss) recognized in Accumulated other comprehensive loss $ (12)   $ (8)  
Gain (loss) recognized in Accumulated other comprehensive loss   $ (25)   $ (11)
Derivative gains (losses) reclassified from accumulated other comprehensive loss (3)   (8)  
Derivative gain (loss) reclassified from accumulated OCI into income, effective portion, net   (2)   (6)
Revenue        
Derivative [Line Items]        
Derivative gains (losses) reclassified from accumulated other comprehensive loss (3)   (7)  
Derivative gain (loss) reclassified from accumulated OCI into income, effective portion, net   0   0
Compensation and benefits        
Derivative [Line Items]        
Derivative gains (losses) reclassified from accumulated other comprehensive loss 0   0  
Derivative gain (loss) reclassified from accumulated OCI into income, effective portion, net   0   1
Other general expenses        
Derivative [Line Items]        
Derivative gains (losses) reclassified from accumulated other comprehensive loss 0   0  
Derivative gain (loss) reclassified from accumulated OCI into income, effective portion, net   (1)   (2)
Interest expense        
Derivative [Line Items]        
Derivative gains (losses) reclassified from accumulated other comprehensive loss 0   (1)  
Derivative gain (loss) reclassified from accumulated OCI into income, effective portion, net   0   (1)
Other income (expense) (1)        
Derivative [Line Items]        
Derivative gains (losses) reclassified from accumulated other comprehensive loss $ 0   $ 0  
Derivative gain (loss) reclassified from accumulated OCI into income, effective portion, net   $ (1)   $ (4)
v3.19.2
Derivatives and Hedging - Interest Rate Management Risk Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Derivative [Line Items]        
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months     $ (14)  
Not Designated as Hedging Instrument | Gross foreign exchange contracts        
Derivative [Line Items]        
Derivative gain (loss) $ (9) $ (20) $ (4) $ (11)
v3.19.2
Derivatives and Hedging - Foreign Hedge (Details) - 6 months ended Jun. 30, 2019 - Net Investment Hedging
€ in Millions, $ in Millions
USD ($)
EUR (€)
Derivatives, Fair Value    
European denominated commercial paper $ 568 € 500
Effective portion of loss reclassified from Accumulated OCI $ 16  
v3.19.2
Fair Value Measurements and Financial Instruments - Schedule of assets and liabilities that are measured at fair value on a recurring basis (Details) - Recurring - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Money market funds and highly liquid debt securities    
Assets    
Money market funds and highly liquid debt securities $ 2,356 $ 1,759
Government bonds    
Assets    
Other investments: 1 1
Equity investments    
Assets    
Other investments: 1 2
Gross foreign exchange contracts    
Assets    
Derivatives 21 21
Liabilities    
Derivatives 3 12
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds and highly liquid debt securities    
Assets    
Money market funds and highly liquid debt securities 2,356 1,759
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds    
Assets    
Other investments: 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity investments    
Assets    
Other investments: 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Gross foreign exchange contracts    
Assets    
Derivatives 0 0
Liabilities    
Derivatives 0 0
Significant Other Observable Inputs (Level 2) | Money market funds and highly liquid debt securities    
Assets    
Money market funds and highly liquid debt securities 0 0
Significant Other Observable Inputs (Level 2) | Government bonds    
Assets    
Other investments: 1 1
Significant Other Observable Inputs (Level 2) | Equity investments    
Assets    
Other investments: 1 2
Significant Other Observable Inputs (Level 2) | Gross foreign exchange contracts    
Assets    
Derivatives 21 21
Liabilities    
Derivatives 3 12
Significant Unobservable Inputs (Level 3) | Money market funds and highly liquid debt securities    
Assets    
Money market funds and highly liquid debt securities 0 0
Significant Unobservable Inputs (Level 3) | Government bonds    
Assets    
Other investments: 0 0
Significant Unobservable Inputs (Level 3) | Equity investments    
Assets    
Other investments: 0 0
Significant Unobservable Inputs (Level 3) | Gross foreign exchange contracts    
Assets    
Derivatives 0 0
Liabilities    
Derivatives $ 0 $ 0
v3.19.2
Fair Value Measurements and Financial Instruments - Schedule of financial instruments where the carrying amounts and fair values differ (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Carrying Value    
Fair value of financial instrument    
Long-term debt $ 6,740 $ 5,993
Fair Value | Fair Value, Inputs, Level 2    
Fair value of financial instrument    
Long-term debt $ 7,356 $ 6,159
v3.19.2
Claims, Lawsuits and Other Contingencies - Narrative (Details)
£ in Millions, $ in Millions
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2019
USD ($)
Sep. 06, 2018
USD ($)
Oct. 03, 2017
NZD ($)
Dec. 20, 2016
GBP (£)
Jun. 29, 2015
NZD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2018
USD ($)
Apr. 30, 2014
GBP (£)
Legal, Guarantees and Indemnifications                        
Revenue           $ 2,606,000,000 $ 2,561,000,000 $ 5,749,000,000 $ 5,651,000,000      
Maximum potential funding under commitments $ 102,000,000         102,000,000   102,000,000     $ 103,000,000  
Letters of credit outstanding 74,000,000         74,000,000   74,000,000     $ 83,000,000  
Potential Claim for Pension Advisory Services                        
Legal, Guarantees and Indemnifications                        
Estimate of possible loss 57,000,000         57,000,000   57,000,000       £ 45
Pending Litigation | Trustees Of Gleeds Pension Fund 2016                        
Legal, Guarantees and Indemnifications                        
Estimate of possible loss 89,000,000         89,000,000   89,000,000        
Damages sought | £       £ 70                
Pending Litigation | Lyttleton Port Company Limited                        
Legal, Guarantees and Indemnifications                        
Damages sought 123,000,000       $ 184              
Pending Litigation | Christchurch City Council                        
Legal, Guarantees and Indemnifications                        
Damages sought 353,000,000   $ 528                  
Minimum                        
Legal, Guarantees and Indemnifications                        
Estimate of possible loss 0         0   0        
Minimum | Pilkington North America, Inc.                        
Legal, Guarantees and Indemnifications                        
Damages sought   $ 45,000,000                    
Maximum                        
Legal, Guarantees and Indemnifications                        
Estimate of possible loss 100,000,000         100,000,000   100,000,000        
Maximum | Pilkington North America, Inc.                        
Legal, Guarantees and Indemnifications                        
Damages sought   85,000,000                    
Damages awarded   $ 15,000,000                    
Aviation and Aerospace Broking Industry                        
Legal, Guarantees and Indemnifications                        
Revenue                   $ 100,000,000    
Discontinued Operations, Disposed of by Sale | Tempo Business | Property Lease Guarantee                        
Legal, Guarantees and Indemnifications                        
Guarantor obligations, current carrying value 15,000,000         15,000,000   15,000,000        
Loss contingency accrual payments               0        
Maximum potential funding under commitments 77,000,000         77,000,000   77,000,000        
Discontinued Operations, Disposed of by Sale | Tempo Business | Performance Guarantee                        
Legal, Guarantees and Indemnifications                        
Guarantor obligations, current carrying value 1,000,000         1,000,000   1,000,000        
Loss contingency accrual payments           0            
Maximum potential funding under commitments $ 170,000,000         $ 170,000,000   $ 170,000,000        
v3.19.2
Segment Information (Details)
6 Months Ended
Jun. 30, 2019
segment
revenue_line
metric
Segment Reporting [Abstract]  
Number of reportable segments 1
Number of revenue lines | revenue_line 5
Number of performance metrics | metric 4
Number of operating segments 1
v3.19.2
Guarantee of Registered Securities - Narrative (Details) - subsidiary
Jun. 30, 2019
May 02, 2019
Dec. 31, 2018
Dec. 03, 2018
Condensed Financial Statements, Captions [Line Items]        
Number of subsidiaries     2  
Aon plc        
Condensed Financial Statements, Captions [Line Items]        
Parent company's percentage ownership of guarantors 100.00%      
5.00% Senior notes due September 2020        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 5.00%      
8.205% Junior subordinated deferrable interest debentures due January 2027        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 8.205%      
6.25% Senior notes due September 2040        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 6.25%      
4.250% Senior notes due 2042        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 4.25%      
4.45% notes due 2043        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 4.45%      
4.00% notes due 2023        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 4.00%      
2.875% notes due 2026        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 2.875%      
3.50% Notes due June 2024        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 3.50%      
4.60% notes due May 2044        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 4.60%      
4.75% Notes Due May 2045        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 4.75%      
4.500% Senior Notes Due December 2028 | Senior Notes        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 4.50%     4.50%
3.75% Senior Notes Due May 2, 2029 | Senior Notes        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 3.75% 3.75%    
2.80% Senior Notes Due 2021        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 2.80%      
3.875% due in December 2025        
Condensed Financial Statements, Captions [Line Items]        
Debt interest rate percentage (as a percent) 3.875%      
v3.19.2
Guarantee of Registered Securities - Condensed Consolidating Statement of Income (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenue            
Total revenue $ 2,606   $ 2,561   $ 5,749 $ 5,651
Expenses            
Compensation and benefits 1,501   1,494   3,085 3,110
Information technology 126   123   243 238
Premises 85   96   172 189
Depreciation of fixed assets 40   47   80 86
Amortization and impairment of intangible assets 97   282   194 392
Other general expenses 344   535   690 853
Total operating expenses 2,193   2,577   4,464 4,868
Operating income (loss) 413   (16)   1,285 783
Interest income 1   1   3 5
Interest expense (77)   (69)   (149) (139)
Intercompany interest income (expense) 0   0   0 0
Intercompany other income (expense) 0   0   0 0
Other income (expense) 6   (3)   6 (18)
Income (loss) from continuing operations before income taxes 343   (87)   1,145 631
Income tax expense (benefit) 56   (144)   182 (30)
Net income from continuing operations 287   57   963 661
Net income from discontinued operations 0   1   0 7
Net income (loss) before equity in earnings of subsidiaries 287   58   963 668
Equity in earnings of subsidiaries 0   0   0 0
Net income 287 $ 676 58 $ 610 963 668
Less: Net income attributable to noncontrolling interests 10   10   27 26
Net income attributable to Aon shareholders 277   48   936 642
Aon plc            
Revenue            
Total revenue 0   0   0 0
Expenses            
Compensation and benefits 22   15   42 34
Information technology 0   0   0 0
Premises 0   0   0 0
Depreciation of fixed assets 0   0   0 0
Amortization and impairment of intangible assets 0   0   0 0
Other general expenses 3   2   3 3
Total operating expenses 25   17   45 37
Operating income (loss) (25)   (17)   (45) (37)
Interest income 0   0   0 0
Interest expense (45)   (48)   (91) (97)
Intercompany interest income (expense) 3   3   7 7
Intercompany other income (expense) 137   (93)   168 (146)
Other income (expense) (11)   48   (6) 23
Income (loss) from continuing operations before income taxes 59   (107)   33 (250)
Income tax expense (benefit) 0   (3)   (5) (19)
Net income from continuing operations 59   (104)   38 (231)
Net income from discontinued operations 0   0   0 0
Net income (loss) before equity in earnings of subsidiaries 59   (104)   38 (231)
Equity in earnings of subsidiaries 211   170   893 888
Net income 270   66   931 657
Less: Net income attributable to noncontrolling interests 0   0   0 0
Net income attributable to Aon shareholders 270   66   931 657
Aon Corporation            
Revenue            
Total revenue 0   0   0 0
Expenses            
Compensation and benefits 4   1   12 2
Information technology 0   0   0 0
Premises 9   0   13 0
Depreciation of fixed assets 0   0   0 0
Amortization and impairment of intangible assets 0   0   0 0
Other general expenses 6   91   2 91
Total operating expenses 19   92   27 93
Operating income (loss) (19)   (92)   (27) (93)
Interest income 9   15   18 29
Interest expense (34)   (25)   (62) (49)
Intercompany interest income (expense) (116)   (129)   (232) (257)
Intercompany other income (expense) (164)   10   (263) 5
Other income (expense) (14)   (20)   (25) (26)
Income (loss) from continuing operations before income taxes (338)   (241)   (591) (391)
Income tax expense (benefit) (64)   (50)   (106) (77)
Net income from continuing operations (274)   (191)   (485) (314)
Net income from discontinued operations 0   0   0 0
Net income (loss) before equity in earnings of subsidiaries (274)   (191)   (485) (314)
Equity in earnings of subsidiaries 301   207   1,025 912
Net income 27   16   540 598
Less: Net income attributable to noncontrolling interests 0   0   0 0
Net income attributable to Aon shareholders 27   16   540 598
Other Non-Guarantor Subsidiaries            
Revenue            
Total revenue 2,606   2,561   5,749 5,651
Expenses            
Compensation and benefits 1,475   1,478   3,031 3,074
Information technology 126   123   243 238
Premises 76   96   159 189
Depreciation of fixed assets 40   47   80 86
Amortization and impairment of intangible assets 97   282   194 392
Other general expenses 335   442   685 759
Total operating expenses 2,149   2,468   4,392 4,738
Operating income (loss) 457   93   1,357 913
Interest income 0   0   0 0
Interest expense (6)   (10)   (11) (17)
Intercompany interest income (expense) 113   126   225 250
Intercompany other income (expense) 27   83   95 141
Other income (expense) 24   (13)   32 0
Income (loss) from continuing operations before income taxes 615   279   1,698 1,287
Income tax expense (benefit) 120   (91)   293 66
Net income from continuing operations 495   370   1,405 1,221
Net income from discontinued operations 0   1   0 7
Net income (loss) before equity in earnings of subsidiaries 495   371   1,405 1,228
Equity in earnings of subsidiaries 27   16   540 598
Net income 522   387   1,945 1,826
Less: Net income attributable to noncontrolling interests 10   10   27 26
Net income attributable to Aon shareholders 512   377   1,918 1,800
Consolidation Adjustments            
Revenue            
Total revenue 0   0   0 0
Expenses            
Compensation and benefits 0   0   0 0
Information technology 0   0   0 0
Premises 0   0   0 0
Depreciation of fixed assets 0   0   0 0
Amortization and impairment of intangible assets 0   0   0 0
Other general expenses 0   0   0 0
Total operating expenses 0   0   0 0
Operating income (loss) 0   0   0 0
Interest income (8)   (14)   (15) (24)
Interest expense 8   14   15 24
Intercompany interest income (expense) 0   0   0 0
Intercompany other income (expense) 0   0   0 0
Other income (expense) 7   (18)   5 (15)
Income (loss) from continuing operations before income taxes 7   (18)   5 (15)
Income tax expense (benefit) 0   0   0 0
Net income from continuing operations 7   (18)   5 (15)
Net income from discontinued operations 0   0   0 0
Net income (loss) before equity in earnings of subsidiaries 7   (18)   5 (15)
Equity in earnings of subsidiaries (539)   (393)   (2,458) (2,398)
Net income (532)   (411)   (2,453) (2,413)
Less: Net income attributable to noncontrolling interests 0   0   0 0
Net income attributable to Aon shareholders $ (532)   $ (411)   $ (2,453) $ (2,413)
v3.19.2
Guarantee of Registered Securities - Condensed Consolidating Statement of Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Condensed Financial Statements, Captions [Line Items]            
Net income $ 287 $ 676 $ 58 $ 610 $ 963 $ 668
Less: Net income attributable to noncontrolling interests 10   10   27 26
Net income attributable to Aon shareholders 277   48   936 642
Change in fair value of financial instruments (8) 7 (1) 14 (1) 13
Foreign currency translation adjustments (103) 133 (460) 247 30 (213)
Postretirement benefit obligation 14 $ 31 122 $ 48 45 170
Total other comprehensive (loss) income (97)   (339)   74 (30)
Equity in other comprehensive income (loss) of subsidiaries, net of tax 0   0   0 0
Less: Other comprehensive loss attributable to noncontrolling interests 0   (6)   2 (3)
Total other comprehensive income (loss) attributable to Aon shareholders (97)   (333)   72 (27)
Comprehensive income (loss) attributable to Aon shareholders 180   (285)   1,008 615
Aon plc            
Condensed Financial Statements, Captions [Line Items]            
Net income 270   66   931 657
Less: Net income attributable to noncontrolling interests 0   0   0 0
Net income attributable to Aon shareholders 270   66   931 657
Change in fair value of financial instruments 0   0   0 0
Foreign currency translation adjustments 0   0   0 0
Postretirement benefit obligation 0   0   0 0
Total other comprehensive (loss) income 0   0   0 0
Equity in other comprehensive income (loss) of subsidiaries, net of tax (90)   (351)   77 (42)
Less: Other comprehensive loss attributable to noncontrolling interests 0   0   0 0
Total other comprehensive income (loss) attributable to Aon shareholders (90)   (351)   77 (42)
Comprehensive income (loss) attributable to Aon shareholders 180   (285)   1,008 615
Aon Corporation            
Condensed Financial Statements, Captions [Line Items]            
Net income 27   16   540 598
Less: Net income attributable to noncontrolling interests 0   0   0 0
Net income attributable to Aon shareholders 27   16   540 598
Change in fair value of financial instruments 0   (4)   2 (1)
Foreign currency translation adjustments 0   0   0 0
Postretirement benefit obligation 10   11   32 22
Total other comprehensive (loss) income 10   7   34 21
Equity in other comprehensive income (loss) of subsidiaries, net of tax (118)   (345)   (3) (60)
Less: Other comprehensive loss attributable to noncontrolling interests 0   0   0 0
Total other comprehensive income (loss) attributable to Aon shareholders (108)   (338)   31 (39)
Comprehensive income (loss) attributable to Aon shareholders (81)   (322)   571 559
Other Non-Guarantor Subsidiaries            
Condensed Financial Statements, Captions [Line Items]            
Net income 522   387   1,945 1,826
Less: Net income attributable to noncontrolling interests 10   10   27 26
Net income attributable to Aon shareholders 512   377   1,918 1,800
Change in fair value of financial instruments (8)   3   (3) 14
Foreign currency translation adjustments (96)   (478)   35 (228)
Postretirement benefit obligation 4   111   13 148
Total other comprehensive (loss) income (100)   (364)   45 (66)
Equity in other comprehensive income (loss) of subsidiaries, net of tax (108)   (338)   31 (39)
Less: Other comprehensive loss attributable to noncontrolling interests 0   (6)   2 (3)
Total other comprehensive income (loss) attributable to Aon shareholders (208)   (696)   74 (102)
Comprehensive income (loss) attributable to Aon shareholders 304   (319)   1,992 1,698
Consolidation Adjustments            
Condensed Financial Statements, Captions [Line Items]            
Net income (532)   (411)   (2,453) (2,413)
Less: Net income attributable to noncontrolling interests 0   0   0 0
Net income attributable to Aon shareholders (532)   (411)   (2,453) (2,413)
Change in fair value of financial instruments 0   0   0 0
Foreign currency translation adjustments (7)   18   (5) 15
Postretirement benefit obligation 0   0   0 0
Total other comprehensive (loss) income (7)   18   (5) 15
Equity in other comprehensive income (loss) of subsidiaries, net of tax 316   1,034   (105) 141
Less: Other comprehensive loss attributable to noncontrolling interests 0   0   0 0
Total other comprehensive income (loss) attributable to Aon shareholders 309   1,052   (110) 156
Comprehensive income (loss) attributable to Aon shareholders $ (223)   $ 641   $ (2,563) $ (2,257)
v3.19.2
Guarantee of Registered Securities - Condensed Consolidating Statement of Financial Position (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Current assets            
Cash and cash equivalents $ 581   $ 656      
Short-term investments 235   172      
Receivables, net 3,227   2,760      
Fiduciary assets 12,071   10,166      
Current intercompany receivables 0   0      
Other current assets 631   618      
Total current assets 16,745   14,372      
Goodwill 8,198   8,171      
Intangible assets, net 973   1,149      
Fixed assets, net 599   588      
Operating lease right-of-use assets 959          
Deferred tax assets 599   561      
Prepaid pension 1,213   1,133      
Non-current intercompany receivables 0   0      
Other non-current assets 521   448      
Investment in subsidiary 0   0      
Total assets 29,807   26,422      
Current liabilities            
Accounts payable and accrued liabilities 1,369   1,943      
Short-term debt and current portion of long-term debt 844   251      
Fiduciary liabilities 12,071   10,166      
Current intercompany payables 0   0      
Other current liabilities 1,197   936      
Total current liabilities 15,481   13,296      
Long-term debt 6,740   5,993      
Non-current operating lease liabilities 962          
Deferred tax liabilities 211   181      
Pension, other postretirement, and postemployment liabilities 1,576   1,636      
Non-current intercompany payables 0   0      
Other non-current liabilities 924   1,097      
Total liabilities 25,894   22,203      
Total Aon shareholders’ equity 3,836   4,151      
Noncontrolling interests 77   68      
Total equity 3,913 $ 4,862 4,219 $ 4,618 $ 5,385 $ 5,140
Total liabilities and equity 29,807   26,422      
Aon plc            
Current assets            
Cash and cash equivalents 0   0      
Short-term investments 0   0      
Receivables, net 0   0      
Fiduciary assets 0   0      
Current intercompany receivables 167   191      
Other current assets 0   0      
Total current assets 167   191      
Goodwill 0   0      
Intangible assets, net 0   0      
Fixed assets, net 0   0      
Operating lease right-of-use assets 0          
Deferred tax assets 93   94      
Prepaid pension 0   0      
Non-current intercompany receivables 404   403      
Other non-current assets 1   1      
Investment in subsidiary 8,937   8,433      
Total assets 9,602   9,122      
Current liabilities            
Accounts payable and accrued liabilities 582   274      
Short-term debt and current portion of long-term debt 569   250      
Fiduciary liabilities 0   0      
Current intercompany payables 378   213      
Other current liabilities 0   0      
Total current liabilities 1,529   737      
Long-term debt 4,234   4,231      
Non-current operating lease liabilities 0          
Deferred tax liabilities 0   0      
Pension, other postretirement, and postemployment liabilities 0   0      
Non-current intercompany payables 0   0      
Other non-current liabilities 3   3      
Total liabilities 5,766   4,971      
Total Aon shareholders’ equity 3,836   4,151      
Noncontrolling interests 0   0      
Total equity 3,836   4,151      
Total liabilities and equity 9,602   9,122      
Aon Corporation            
Current assets            
Cash and cash equivalents 1,371   862      
Short-term investments 125   56      
Receivables, net 0   0      
Fiduciary assets 0   0      
Current intercompany receivables 3,421   897      
Other current assets 10   16      
Total current assets 4,927   1,831      
Goodwill 0   0      
Intangible assets, net 0   0      
Fixed assets, net 0   0      
Operating lease right-of-use assets 112          
Deferred tax assets 498   467      
Prepaid pension 5   5      
Non-current intercompany receivables 261   261      
Other non-current assets 28   30      
Investment in subsidiary 20,147   19,132      
Total assets 25,978   21,726      
Current liabilities            
Accounts payable and accrued liabilities 57   70      
Short-term debt and current portion of long-term debt 275   0      
Fiduciary liabilities 0   0      
Current intercompany payables 14,633   11,875      
Other current liabilities 78   69      
Total current liabilities 15,043   12,014      
Long-term debt 2,506   1,762      
Non-current operating lease liabilities 149          
Deferred tax liabilities 0   0      
Pension, other postretirement, and postemployment liabilities 1,232   1,275      
Non-current intercompany payables 7,366   7,390      
Other non-current liabilities 106   167      
Total liabilities 26,402   22,608      
Total Aon shareholders’ equity (424)   (882)      
Noncontrolling interests 0   0      
Total equity (424)   (882)      
Total liabilities and equity 25,978   21,726      
Other Non-Guarantor Subsidiaries            
Current assets            
Cash and cash equivalents 537   575      
Short-term investments 110   116      
Receivables, net 3,227   2,760      
Fiduciary assets 12,071   10,166      
Current intercompany receivables 12,843   11,634      
Other current assets 621   602      
Total current assets 29,409   25,853      
Goodwill 8,198   8,171      
Intangible assets, net 973   1,149      
Fixed assets, net 599   588      
Operating lease right-of-use assets 847          
Deferred tax assets 150   144      
Prepaid pension 1,208   1,128      
Non-current intercompany receivables 7,200   7,225      
Other non-current assets 492   417      
Investment in subsidiary (424)   (882)      
Total assets 48,652   43,793      
Current liabilities            
Accounts payable and accrued liabilities 2,057   2,380      
Short-term debt and current portion of long-term debt 0   1      
Fiduciary liabilities 12,071   10,166      
Current intercompany payables 1,420   634      
Other current liabilities 1,119   867      
Total current liabilities 16,667   14,048      
Long-term debt 0   0      
Non-current operating lease liabilities 813          
Deferred tax liabilities 353   325      
Pension, other postretirement, and postemployment liabilities 344   361      
Non-current intercompany payables 499   499      
Other non-current liabilities 815   927      
Total liabilities 19,491   16,160      
Total Aon shareholders’ equity 29,084   27,565      
Noncontrolling interests 77   68      
Total equity 29,161   27,633      
Total liabilities and equity 48,652   43,793      
Consolidation Adjustments            
Current assets            
Cash and cash equivalents (1,327)   (781)      
Short-term investments 0   0      
Receivables, net 0   0      
Fiduciary assets 0   0      
Current intercompany receivables (16,431)   (12,722)      
Other current assets 0   0      
Total current assets (17,758)   (13,503)      
Goodwill 0   0      
Intangible assets, net 0   0      
Fixed assets, net 0   0      
Operating lease right-of-use assets 0          
Deferred tax assets (142)   (144)      
Prepaid pension 0   0      
Non-current intercompany receivables (7,865)   (7,889)      
Other non-current assets 0   0      
Investment in subsidiary (28,660)   (26,683)      
Total assets (54,425)   (48,219)      
Current liabilities            
Accounts payable and accrued liabilities (1,327)   (781)      
Short-term debt and current portion of long-term debt 0   0      
Fiduciary liabilities 0   0      
Current intercompany payables (16,431)   (12,722)      
Other current liabilities 0   0      
Total current liabilities (17,758)   (13,503)      
Long-term debt 0   0      
Non-current operating lease liabilities 0          
Deferred tax liabilities (142)   (144)      
Pension, other postretirement, and postemployment liabilities 0   0      
Non-current intercompany payables (7,865)   (7,889)      
Other non-current liabilities 0   0      
Total liabilities (25,765)   (21,536)      
Total Aon shareholders’ equity (28,660)   (26,683)      
Noncontrolling interests 0   0      
Total equity (28,660)   (26,683)      
Total liabilities and equity $ (54,425)   $ (48,219)      
v3.19.2
Guarantee of Registered Securities - Condensed Consolidating Statement of Cash Flows (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash flows from operating activities    
Cash provided by (used for) operating activities $ 361 $ 413
Cash flows from investing activities    
Proceeds from investments 14 23
Payments for investments (60) (36)
Net sales (purchases) of short-term investments - non-fiduciary (62) 352
Acquisition of businesses, net of cash acquired (15) (50)
Sale of businesses, net of cash sold 7 1
Capital expenditures (106) (111)
Cash provided by (used for) investing activities (222) 179
Cash flows from financing activities    
Share repurchase (1,155) (971)
Advances from (to) affiliates 0 0
Issuance of shares for employee benefit plans (144) (150)
Issuance of debt 3,559 2,552
Repayment of debt (2,228) (2,027)
Cash dividends to shareholders (203) (187)
Noncontrolling interests and other financing activities (61) (15)
Cash used for financing activities (232) (798)
Effect of exchange rates on cash and cash equivalents 18 (63)
Net increase (decrease) in cash and cash equivalents (75) (269)
Cash and cash equivalents at beginning of period 656 756
Cash and cash equivalents at end of period 581 487
Aon plc    
Cash flows from operating activities    
Cash provided by (used for) operating activities 366 (126)
Cash flows from investing activities    
Proceeds from investments 0 0
Payments for investments 0 (12)
Net sales (purchases) of short-term investments - non-fiduciary 0 0
Acquisition of businesses, net of cash acquired 0 0
Sale of businesses, net of cash sold 0 0
Capital expenditures 0 0
Cash provided by (used for) investing activities 0 (12)
Cash flows from financing activities    
Share repurchase (1,155) (971)
Advances from (to) affiliates 823 965
Issuance of shares for employee benefit plans (144) (150)
Issuance of debt 1,219 752
Repayment of debt (906) (272)
Cash dividends to shareholders (203) (187)
Noncontrolling interests and other financing activities 0 0
Cash used for financing activities (366) 137
Effect of exchange rates on cash and cash equivalents 0 0
Net increase (decrease) in cash and cash equivalents 0 (1)
Cash and cash equivalents at beginning of period 0 1
Cash and cash equivalents at end of period 0 0
Aon Corporation    
Cash flows from operating activities    
Cash provided by (used for) operating activities (110) 582
Cash flows from investing activities    
Proceeds from investments 9 13
Payments for investments (19) (17)
Net sales (purchases) of short-term investments - non-fiduciary (69) 296
Acquisition of businesses, net of cash acquired 0 0
Sale of businesses, net of cash sold 0 0
Capital expenditures 0 0
Cash provided by (used for) investing activities (79) 292
Cash flows from financing activities    
Share repurchase 0 0
Advances from (to) affiliates (320) (810)
Issuance of shares for employee benefit plans 0 0
Issuance of debt 2,340 1,800
Repayment of debt (1,322) (1,461)
Cash dividends to shareholders 0 0
Noncontrolling interests and other financing activities 0 0
Cash used for financing activities 698 (471)
Effect of exchange rates on cash and cash equivalents 0 0
Net increase (decrease) in cash and cash equivalents 509 403
Cash and cash equivalents at beginning of period 862 2,524
Cash and cash equivalents at end of period 1,371 2,927
Other Non-Guarantor Subsidiaries    
Cash flows from operating activities    
Cash provided by (used for) operating activities 690 759
Cash flows from investing activities    
Proceeds from investments 5 10
Payments for investments (41) (19)
Net sales (purchases) of short-term investments - non-fiduciary 7 56
Acquisition of businesses, net of cash acquired (15) (50)
Sale of businesses, net of cash sold 7 1
Capital expenditures (106) (111)
Cash provided by (used for) investing activities (143) (113)
Cash flows from financing activities    
Share repurchase 0 0
Advances from (to) affiliates (542) (395)
Issuance of shares for employee benefit plans 0 0
Issuance of debt 0 0
Repayment of debt 0 (294)
Cash dividends to shareholders 0 0
Noncontrolling interests and other financing activities (61) (15)
Cash used for financing activities (603) (704)
Effect of exchange rates on cash and cash equivalents 18 (63)
Net increase (decrease) in cash and cash equivalents (38) (121)
Cash and cash equivalents at beginning of period 575 793
Cash and cash equivalents at end of period 537 672
Consolidation Adjustments    
Cash flows from operating activities    
Cash provided by (used for) operating activities (585) (802)
Cash flows from investing activities    
Proceeds from investments 0 0
Payments for investments 0 12
Net sales (purchases) of short-term investments - non-fiduciary 0 0
Acquisition of businesses, net of cash acquired 0 0
Sale of businesses, net of cash sold 0 0
Capital expenditures 0 0
Cash provided by (used for) investing activities 0 12
Cash flows from financing activities    
Share repurchase 0 0
Advances from (to) affiliates 39 240
Issuance of shares for employee benefit plans 0 0
Issuance of debt 0 0
Repayment of debt 0 0
Cash dividends to shareholders 0 0
Noncontrolling interests and other financing activities 0 0
Cash used for financing activities 39 240
Effect of exchange rates on cash and cash equivalents 0 0
Net increase (decrease) in cash and cash equivalents (546) (550)
Cash and cash equivalents at beginning of period (781) (2,562)
Cash and cash equivalents at end of period $ (1,327) $ (3,112)
v3.19.2
Lease Commitments - Assets and Liabilities of Lessee (Details)
$ in Millions
Jun. 30, 2019
USD ($)
Assets  
Operating lease right-of-use assets $ 959
Finance lease assets 65
Total lease assets 1,024
Current lease liabilities  
Operating 199
Finance 27
Non-current lease liabilities  
Operating 962
Finance 37
Total lease liabilities $ 1,225
v3.19.2
Lease Commitments - Lease Costs (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Leases [Abstract]    
Operating lease cost $ 65 $ 133
Finance lease costs    
Amortization of leased assets 6 13
Interest on lease liabilities 0 1
Variable lease cost 12 18
Short-term lease cost 1 2
Sublease income (8) (16)
Net lease cost $ 76 $ 151
v3.19.2
Lease Commitments - Lease Maturity (Details)
$ in Millions
Jun. 30, 2019
USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]  
Remainder of 2019 $ 127
2020 248
2021 224
2022 198
2023 144
Thereafter 511
Total undiscounted future minimum lease payments 1,452
Imputed interest (151)
Present value of lease liabilities 1,301
Finance Lease, Liability, Payment, Due [Abstract]  
Remainder of 2019 14
2020 28
2021 22
2022 2
2023 0
Thereafter 0
Total undiscounted future minimum lease payments 66
Imputed interest (1)
Present value of lease liabilities 65
Rentals from subleases  
Remainder of 2019 (17)
2020 (34)
2021 (33)
2022 (34)
2023 (15)
Thereafter (8)
Total undiscounted future minimum lease payments (141)
Imputed interest 0
Present value of lease liabilities (141)
Total  
Remainder of 2019 124
2020 242
2021 213
2022 166
2023 129
Thereafter 503
Total undiscounted future minimum lease payments 1,377
Imputed interest (152)
Present value of lease liabilities $ 1,225
v3.19.2
Lease Commitments - Lease Maturity Prior to Topic 842 (Details)
$ in Millions
Dec. 31, 2018
USD ($)
Gross rental commitments  
2019 $ 303
2020 253
2021 221
2022 182
2023 148
Thereafter 472
Total minimum payments required 1,579
Rentals from subleases  
2019 (34)
2020 (30)
2021 (30)
2022 (30)
2023 (12)
Thereafter (5)
Total minimum payments required (141)
Operating Lease Payments Net Of Sublease Rental Income [Abstract]  
2019 269
2020 223
2021 191
2022 152
2023 136
Thereafter 467
Total minimum payments required $ 1,438
v3.19.2
Lease Commitments - Lease Terms and Assumptions (Details)
Jun. 30, 2019
Weighted average remaining lease term (years)  
Operating leases 8 years
Finance leases 2 years 6 months
Weighted average discount rate  
Operating leases 3.30%
Finance leases 2.40%
v3.19.2
Lease Commitments - Cash Flow of Lessee (Details)
$ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
Cash paid for amounts included in the measurement of lease liabilities  
Operating cash flows for operating leases $ 116
Non-cash related activities  
ROU assets obtained in exchange for new operating lease liabilities $ 50
v3.19.2
Lease Commitments - Narrative (Details)
$ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
Leases [Abstract]  
Non cash right-of-use asset lease expense $ 68
Increase (decrease) in operating lease liabilities $ (52)