AON PLC, 10-Q filed on 5/1/2020
Quarterly Report
v3.20.1
Cover - shares
3 Months Ended
Mar. 31, 2020
Apr. 30, 2020
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2020  
Document Transition Report false  
Entity File Number 1-7933  
Entity Registrant Name Aon plc  
Entity Incorporation, State or Country Code L2  
Entity Tax Identification Number 00-0000000  
Entity Address, Address Line One Metropolitan Building, James Joyce Street  
Entity Address, City or Town Dublin 1  
Entity Address, Country IE  
Entity Address, Postal Zip Code D01 K0Y8  
City Area Code 1  
Local Phone Number 266 6000  
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   231,084,584
Entity Central Index Key 0000315293  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q1  
Class A Ordinary Shares $0.01 nominal value    
Entity Information [Line Items]    
Title of 12(b) Security Class A Ordinary Shares $0.01 nominal value  
Trading Symbol AON  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 2.800% Senior Notes due 2021    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 2.800% Senior Notes due 2021  
Trading Symbol AON21  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 4.000% Senior Notes due 2023    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 4.000% Senior Notes due 2023  
Trading Symbol AON23  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 3.500% Senior Notes due 2024    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 3.500% Senior Notes due 2024  
Trading Symbol AON24  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 3.875% Senior Notes due 2025    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 3.875% Senior Notes due 2025  
Trading Symbol AON25  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 2.875% Senior Notes due 2026    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 2.875% Senior Notes due 2026  
Trading Symbol AON26  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 4.250% Senior Notes due 2042    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 4.250% Senior Notes due 2042  
Trading Symbol AON24  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 4.450% Senior Notes due 2043    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 4.450% Senior Notes due 2043  
Trading Symbol AON43  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 4.600% Senior Notes due 2044    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 4.600% Senior Notes due 2044  
Trading Symbol AON44  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 4.750% Senior Notes due 2045    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 4.750% Senior Notes due 2045  
Trading Symbol AON45  
Security Exchange Name NYSE  
v3.20.1
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Revenue    
Total revenue $ 3,219 $ 3,143
Expenses    
Compensation and benefits 1,522 1,584
Information technology 111 117
Premises 73 87
Depreciation of fixed assets 41 40
Amortization of intangible assets 97 97
Other general expenses 342 346
Total operating expenses 2,186 2,271
Operating income 1,033 872
Interest income 2 2
Interest expense (83) (72)
Other income (expense) 29 0
Income from continuing operations before income taxes 981 802
Income tax expense 189 126
Net income from continuing operations 792 676
Net income (loss) from discontinued operations (1) 0
Net income 791 676
Less: Net income attributable to noncontrolling interests 19 17
Net income attributable to Aon shareholders $ 772 $ 659
Basic net income per share attributable to Aon shareholders    
Continuing operations (in dollars per share) $ 3.31 $ 2.72
Discontinued operations (in dollars per share) 0 0
Net income (in dollars per share) 3.31 2.72
Diluted net income per share attributable to Aon shareholders    
Continuing operations (in dollars per share) 3.29 2.70
Discontinued operations (in dollars per share) 0 0
Net income (in dollars per share) $ 3.29 $ 2.70
Weighted average ordinary shares outstanding - basic (in shares) 233.2 242.2
Weighted average ordinary shares outstanding - diluted (in shares) 234.5 243.7
v3.20.1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Statement of Comprehensive Income [Abstract]    
Net income $ 791 $ 676
Less: Net income attributable to noncontrolling interests 19 17
Net income attributable to Aon shareholders 772 659
Other comprehensive income (loss), net of tax:    
Change in fair value of financial instruments (5) 7
Foreign currency translation adjustments (397) 133
Postretirement benefit obligation 24 31
Total other comprehensive income (loss) (378) 171
Less: Other comprehensive income attributable to noncontrolling interests (2) 2
Total other comprehensive income (loss) attributable to Aon shareholders (376) 169
Comprehensive income (loss) attributable to Aon shareholders $ 396 $ 828
v3.20.1
Condensed Consolidated Statements of Financial Position - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Current assets    
Cash and cash equivalents $ 690 $ 790
Short-term investments 170 138
Receivables, net 3,554 3,112
Fiduciary assets 12,401 11,834
Other current assets 530 602
Total current assets 17,345 16,476
Goodwill 8,293 8,165
Intangible assets, net 746 783
Fixed assets, net 666 621
Operating lease right-of-use assets 897 929
Deferred tax assets 638 645
Prepaid pension 1,164 1,216
Other non-current assets 533 570
Total assets 30,282 29,405
Current liabilities    
Accounts payable and accrued liabilities 1,549 1,939
Short-term debt and current portion of long-term debt 1,884 712
Fiduciary liabilities 12,401 11,834
Other current liabilities 1,277 1,086
Total current liabilities 17,111 15,571
Long-term debt 6,227 6,627
Non-current operating lease liabilities 910 944
Deferred tax liabilities 189 199
Pension, other postretirement, and postemployment liabilities 1,655 1,738
Other non-current liabilities 930 877
Total liabilities 27,022 25,956
Equity    
Ordinary shares - $0.01 nominal value Authorized: 750 shares (issued: 2020 - 231.1; 2019 - 232.1) 2 2
Additional paid-in capital 6,121 6,152
Retained earnings 1,455 1,254
Accumulated other comprehensive loss (4,409) (4,033)
Total Aon shareholders' equity 3,169 3,375
Noncontrolling interests 91 74
Total equity 3,260 3,449
Total liabilities and equity $ 30,282 $ 29,405
v3.20.1
Condensed Consolidated Statements of Financial Position (Parenthetical) - $ / shares
Mar. 31, 2020
Dec. 31, 2019
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) 234,100,000 240,100,000
v3.20.1
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, 2018   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, 2019 240.1 232.1      
Beginning Balance at Dec. 31, 2019 $ 3,449 $ 6,154 1,254 (4,033) 74
Increase (Decrease) in Shareholders' Equity          
Net income 791   772   19
Shares issued - employee stock compensation plans (in shares)   1.2      
Shares issued - employee stock compensation plans (112) $ (112)      
Shares purchased (in shares)   (2.2)      
Shares purchased (463)   (463)    
Share-based compensation expense 81 $ 81      
Dividends to shareholders (102)   (102)    
Net change in fair value of financial instruments (5)     (5)  
Net foreign currency translation adjustments (397)     (395) (2)
Net postretirement benefit obligation $ 24     24  
Ending Balance (in shares) at Mar. 31, 2020 234.1 231.1      
Ending Balance at Mar. 31, 2020 $ 3,260 $ 6,123 $ 1,455 $ (4,409) $ 91
v3.20.1
Condensed Consolidated Statement of Shareholders' Equity Unaudited (Parenthetical) - $ / shares
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]    
Dividends (in dollars per share) $ 0.44 $ 400,000.00
v3.20.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Cash flows from operating activities    
Net income $ 791 $ 676
Net income (loss) from discontinued operations (1) 0
Adjustments to reconcile net income to cash provided by operating activities:    
(Gain) loss from sales of businesses, net (25) (4)
Depreciation of fixed assets 41 40
Amortization and impairment of intangible assets 97 97
Share-based compensation expense 76 89
Deferred income taxes (6) (25)
Change in assets and liabilities:    
Fiduciary receivables (808) (609)
Short-term investments — funds held on behalf of clients (237) (541)
Fiduciary liabilities 1,045 1,150
Receivables, net (543) (458)
Accounts payable and accrued liabilities (275) (454)
Restructuring reserves (60) (25)
Current income taxes 141 118
Pension, other postretirement and postemployment liabilities (41) (54)
Other assets and liabilities 141 74
Cash provided by operating activities 338 74
Cash flows from investing activities    
Proceeds from investments 6 12
Payments for investments (43) (14)
Net sales (purchases) of short-term investments — non-fiduciary (38) 41
Acquisition of businesses, net of cash acquired (334) (15)
Sale of businesses, net of cash sold 30 6
Capital expenditures (59) (57)
Cash used for investing activities (438) (27)
Cash flows from financing activities    
Share repurchase (463) (100)
Issuance of shares for employee benefit plans (112) (98)
Issuance of debt 2,060 871
Repayment of debt (1,341) (694)
Cash dividends to shareholders (102) (96)
Noncontrolling interests and other financing activities 40 (23)
Cash provided by (used for) financing activities 82 (140)
Effect of exchange rates on cash and cash equivalents (82) 37
Net increase (decrease) in cash and cash equivalents (100) (56)
Cash and cash equivalents at beginning of period 790 656
Cash and cash equivalents at end of period 690 600
Supplemental disclosures:    
Interest paid 51 27
Income taxes paid, net of refunds $ 53 $ 33
v3.20.1
Basis of Presentation
3 Months Ended
Mar. 31, 2020
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. 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. The 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, 2019, including amendments and additions disclosed on Form 8-K issued April 1, 2020. The results for the three months ended March 31, 2020 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2020, particularly in light of the continuing effect of the COVID-19 pandemic.
On April 1, 2020, a scheme of arrangement under English law was completed pursuant to which the Class A ordinary shares of Aon plc, a public limited company incorporated under the laws of England and Wales and the publicly traded parent company of the Aon group (“Aon UK”), were cancelled and the holders thereof received, on a one-for-one basis, Class A ordinary shares of Aon plc, an Irish public limited company formerly known as Aon Limited (“Aon Ireland”), as described in the proxy statement filed with the U.S. Securities and Exchange Commission (“SEC”) on December 20, 2019 (the “Ireland Reorganization”). Aon Ireland is a tax resident of Ireland. References in the Financial Statements to “Aon” or the “Company” for time periods prior to April 1, 2020 refer to Aon UK. References in the Financial Statements to “Aon” or the “Company” for time periods on or after April 1, 2020, refer to Aon Ireland.
Use of Estimates
The preparation of the 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, foreign currency exchange rate movements, and, recently, impacts from the COVID-19 pandemic 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.
v3.20.1
Accounting Principles and Practices
3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Accounting Principles and Practices Accounting Principles and Practices
Adoption of New Accounting Standards
Cloud Computing Arrangements
In August 2018, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance on implementation costs incurred in a cloud computing arrangement that is a service contract. The new guidance aligns capitalization requirements for certain implementation costs incurred in cloud computing arrangements with existing requirements for capitalizing implementation costs for internal-use software. These costs will be deferred over the term of the hosting arrangement, including any optional renewal periods the entity is reasonably certain to exercise. An entity may apply the new guidance on either a prospective or retrospective basis. The new guidance was effective for Aon in the first quarter of 2020 and was adopted on a prospective basis for all implementation costs incurred after the date of initial adoption. The adoption of this guidance had no significant impact on the Financial Statements.
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. The new guidance was effective for Aon in the first quarter of 2020 and was adopted on a prospective basis. The adoption of this guidance had no 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. The Company adopted the new standard as of January 1, 2020 using the modified retrospective approach. Under this approach, prior periods were not restated. Rather, the cumulative effect of initially applying the new standard was recognized as an adjustment to retained earnings. Upon the adoption of this guidance on January 1, 2020, the Company recognized a cumulative adjustment of $6 million to decrease retained earnings.
The Company’s estimate for allowance for credit losses with respect to receivables is based on a combination of factors, including evaluation of forward-looking information, historical write-offs, aging of balances, and other qualitative and quantitative analyses.
Accounting Standards Issued But Not Yet Adopted
Simplifying the Accounting for Income Taxes
In December 2019, the FASB issued new accounting guidance that simplifies the accounting for income taxes by eliminating some exceptions to the general approach in the existing guidance. It also clarifies certain aspects of the existing guidance to promote more consistent application. The new guidance is effective for Aon in the first quarter of 2021, with early adoption permitted. The Company is currently evaluating the impact that the guidance will have on the Financial Statements and the period of adoption.
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.
Securities and Exchange Commission Final Rules
Financial Disclosures about Guarantors
In March 2020, the SEC passed changes to the disclosure requirements in Rules 3-10 and 3-16 of Regulation S-X to better align those requirements with the needs of investors and to simplify and streamline the disclosure obligations of registrants. The amendments are effective January 4, 2021, with early adoption permitted. The Company is currently evaluating the impact that the guidance will have on the Financial Statements and the period of adoption.
v3.20.1
Revenue from Contracts with Customers
3 Months Ended
Mar. 31, 2020
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 March 31,
 
 
2020
 
2019
Commercial Risk Solutions
 
$
1,146

 
$
1,118

Reinsurance Solutions
 
848

 
788

Retirement Solutions
 
397

 
420

Health Solutions
 
502

 
486

Data & Analytic Services
 
331

 
336

Elimination
 
(5
)
 
(5
)
Total revenue
 
$
3,219

 
$
3,143

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 March 31,
 
 
2020
 
2019
United States
 
$
1,227

 
$
1,161

Americas other than United States
 
228

 
226

United Kingdom
 
500

 
452

Europe, Middle East, & Africa other than United Kingdom
 
978

 
1,009

Asia Pacific
 
286

 
295

Total revenue
 
$
3,219

 
$
3,143



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 March 31,
 
 
2020
 
2019
Balance at beginning of period
 
$
335

 
$
329

Additions
 
318

 
346

Amortization
 
(416
)
 
(439
)
Impairment
 

 

Foreign currency translation and other
 
(8
)
 

Balance at end of period
 
$
229

 
$
236



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 March 31,
 
 
2020
 
2019
Balance at beginning of period
 
$
171

 
$
156

Additions
 
12

 
9

Amortization
 
(12
)
 
(11
)
Impairment
 

 

Foreign currency translation and other
 
(4
)
 
1

Balance at end of period
 
$
167

 
$
155


v3.20.1
Cash and Cash Equivalents and Short-term Investments
3 Months Ended
Mar. 31, 2020
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 March 31, 2020, Cash and cash equivalents and Short-term investments were $860 million compared to $928 million at December 31, 2019, a decrease of $68 million. Of the total balances, $95 million and $110 million were restricted as to their use at March 31, 2020 and December 31, 2019, respectively. Included within Short-term investments as of March 31, 2020 and December 31, 2019 were £42.7 million ($52.1 million at March 31, 2020 exchange rates and $55.5 million at December 31, 2019 exchange rates) 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.
v3.20.1
Other Financial Data
3 Months Ended
Mar. 31, 2020
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 March 31,
 
 
2020
 
2019
Foreign currency remeasurement
 
$
42

 
$
(11
)
Disposal of businesses
 
25

 
5

Pension and other postretirement
 
4

 
4

Equity earnings
 
1

 
1

Financial instruments
 
(44
)
 
1

Other
 
1

 

Total
 
$
29

 
$


Condensed Consolidated Statements of Financial Position Information
Allowance for Doubtful Accounts
An analysis of the allowance for doubtful accounts is as follows (in millions):
 
 
Three Months Ended March 31,
 
 
2020 (1)
 
2019
Balance at December 31
 
$
70

 
$
64

Adoption of new accounting guidance (2)
 
7

 

Balance at January 1
 
77

 
64

Provision
 
9

 
8

Accounts written off, net of recoveries
 
(8
)
 
(8
)
Foreign currency translation and other
 
3

 

Balance at end of period
 
$
81

 
$
64


(1)
The Company’s estimate for allowance for credit losses with respect to receivables is based on a combination of factors, including evaluation of forward-looking information, historical write-offs, aging of balances, and other qualitative and quantitative analyses. Refer to Note 2 “Accounting Principles and Practices” for further information.
(2)
The allowance for doubtful accounts resulted in a $7 million charge from the adoption of the new accounting standard on the measurement of credit losses. After tax impacts, this resulted in a $6 million decrease to Retained earnings. Refer to Note 2 “Accounting Principles and Practices” for further information.
Other Current Assets
The components of Other current assets are as follows (in millions):
As of
March 31,
2020
 
December 31,
2019
Costs to fulfill contracts with customers (1)
$
229

 
$
335

Prepaid expenses
156

 
97

Taxes receivable
79

 
88

Other (2)
66

 
82

Total
$
530

 
$
602


(1)
Refer to Note 3 “Revenue from Contracts with Customers” for further information.
(2)
December 31, 2019 includes $4 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
March 31,
2020
 
December 31,
2019
Costs to obtain contracts with customers (1)
$
167

 
$
171

Taxes receivable
101

 
102

Leases
93

 
100

Investments
52

 
53

Other
120

 
144

Total
$
533

 
$
570


(1)
Refer to Note 3 “Revenue from Contracts with Customers” for further information.
Other Current Liabilities
The components of Other current liabilities are as follows (in millions):
As of
March 31,
2020
 
December 31,
2019
Deferred revenue (1)
$
309

 
$
270

Leases
200

 
210

Taxes payable
196

 
93

Other
572

 
513

Total
$
1,277

 
$
1,086


(1)
During the three months ended March 31, 2020, $117 million was recognized in the Condensed Consolidated Statement of Income. During the 12 months ended December 31, 2019, $532 million was recognized in the Consolidated Statement of Income.
Other Non-Current Liabilities
The components of Other non-current liabilities are as follows (in millions):
As of
March 31,
2020
 
December 31,
2019
Taxes payable (1)
$
544

 
$
525

Leases
74

 
76

Deferred revenue
72

 
62

Compensation and benefits
41

 
49

Other
199

 
165

Total
$
930

 
$
877


(1)
Includes $145 million for the non-current portion of the one-time mandatory transition tax on accumulated foreign earnings as of March 31, 2020 and December 31, 2019.
v3.20.1
Restructuring
3 Months Ended
Mar. 31, 2020
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 benefits administration and business process outsourcing business (the “Divested Business”). The Restructuring Plan was intended to streamline operations across the organization and deliver greater efficiency, insight, and connectivity. The Company incurred all remaining costs for the Restructuring Plan, and the Restructuring Plan was closed in the fourth quarter of 2019. As such, for the three months ended March 31, 2020, no charges were taken under the Restructuring Plan. For the three months ended March 31, 2019, $91 million of restructuring expenses were charged under the Restructuring Plan.
As of December 31, 2019, the remaining liabilities for the Restructuring Plan were $204 million. During the three months ended March 31, 2020, the Company made cash payments of $60 million, and the effect of foreign currency translation and other non-cash activity was $17 million, resulting in restructuring liabilities of $127 million as of March 31, 2020.
v3.20.1
Acquisitions and Dispositions of Businesses
3 Months Ended
Mar. 31, 2020
Business Combinations [Abstract]  
Acquisitions and Dispositions of Businesses Acquisitions and Dispositions of Businesses
Completed Acquisitions
The Company completed five acquisitions during the three months ended March 31, 2020 and one acquisition during the three months ended March 31, 2019. The following table includes the preliminary fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisitions (in millions):
Consideration Transferred
 
Three Months Ended March 31, 2020
Cash
 
$
351

Deferred, contingent, and other consideration
 
35

Aggregate consideration transferred
 
$
386

 
 
 
Assets acquired
 
 
Cash and cash equivalents
 
$
17

Receivables
 
7

Goodwill
 
303

Intangible assets
 
74

Current assets
 
2

Non-current assets
 
5

Total assets acquired
 
408

Liabilities assumed
 
 
Current liabilities
 
11

Non-current liabilities
 
11

Total liabilities assumed
 
22

Net assets acquired
 
$
386


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.
2020 Acquisitions
On January 1, 2020, the Company completed the acquisition of 100% share capital of Apollo Conseil et Courtage, an insurance broker based in France.
On January 1, 2020, the Company completed the acquisition of 100% share capital of Assimedia SA, an insurance broker based in Switzerland.
On January 1, 2020, the Company completed the acquisition of 100% share capital of TRIUM GmbH Insurance Broker, an insurance broker based in Germany.
On January 3, 2020, the Company completed the acquisition of 100% share capital of CoverWallet, Inc., a U.S.-based digital insurance platform for small- and medium-sized businesses.
On January 31, 2020, the Company completed the acquisition of 100% share capital of Cytelligence Inc., a Canadian-based cyber security firm that provides incident response advisory, digital forensic expertise, security consulting services, and cyber security training for employees to help organizations respond to cyber security threats and strengthen their security position.
2019 Acquisitions
On July 31, 2019, the Company completed the acquisition of 100% share capital of Ovatio Courtage SAS, an insurance broker based in France.
On July 31, 2019, the Company completed the acquisition of 100% share capital of Zalba-Caldu Correduria de Seguros, S.A., a Spanish insurance broker.
On January 1, 2019, the Company completed the acquisition of 100% share capital of Chapka Assurances SAS, based in France.
Completed Dispositions
The Company completed one disposition during the three months ended March 31, 2020. The Company completed one disposition during the three months ended March 31, 2019.
Total pretax gains recognized for the three months ended March 31, 2020 were $25 million. Total pretax gains recognized for the three months ended March 31, 2019 were $5 million. Gains and losses recognized as a result of a disposition are included in Other income (expense) in the Condensed Consolidated Statements of Income.
Other Significant Activity
On March 9, 2020, Aon and Willis Towers Watson Public Limited Company, an Irish public limited company (“WTW”), entered into a business combination agreement (the “Business Combination Agreement”) with respect to a combination of the parties (the “Combination”). Refer to “Business Combination Agreement” within Management’s Discussion and Analysis of Financial Condition and Results of Operations for further information.
v3.20.1
Goodwill and Other Intangible Assets
3 Months Ended
Mar. 31, 2020
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 three months ended March 31, 2020 are as follows (in millions):
Balance as of December 31, 2019
$
8,165

Goodwill related to current year acquisitions
303

Goodwill related to disposals
(3
)
Goodwill related to prior year acquisitions

Foreign currency translation
(172
)
Balance as of March 31, 2020
$
8,293


Other intangible assets by asset class are as follows (in millions):
 
March 31, 2020
 
December 31, 2019
 
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
$
2,227

 
$
1,590

 
$
637

 
$
2,264

 
$
1,600

 
$
664

Tradenames
1,026

 
1,005

 
21

 
1,029

 
956

 
73

Technology and other
408

 
320

 
88

 
380

 
334

 
46

Total
$
3,661

 
$
2,915

 
$
746

 
$
3,673

 
$
2,890

 
$
783


The estimated future amortization for finite-lived intangible assets as of March 31, 2020 is as follows (in millions):
Remainder of 2020
$
139

2021
136

2022
96

2023
85

2024
69

2025
51

Thereafter
170

Total
$
746


v3.20.1
Debt
3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Debt Debt
Notes
In March 2020, the Company’s $400 million 2.80% Senior Notes due March 2021 were classified as Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position as the date of maturity is in less than one year.
On November 15, 2019, Aon Corporation, a Delaware corporation and a wholly owned subsidiary of the Company, issued $500 million 2.20% Senior Notes due November 2022. The Company used the net proceeds of the offering to pay down a portion of outstanding commercial paper and for general corporate purposes.
In September 2019, the Company’s $600 million 5.00% Senior Notes due September 2020 were classified as Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position as the date of maturity is in less than one year.
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.
Revolving Credit Facilities
As of March 31, 2020, Aon plc had two primary committed credit facilities outstanding: its $900 million multi-currency U.S. credit facility expiring in February 2022 and its $750 million multi-currency U.S. credit facility expiring in October 2023. Effective February 27, 2020, the $750 million multi-currency U.S. credit facility was increased by $350 million from the original $400 million. In aggregate, these two facilities provide $1.65 billion in available credit.
Each of these primary committed credit 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 March 31, 2020, Aon did not have borrowings under either of these primary committed credit facilities, and was in compliance with the financial covenants and all other covenants contained therein during the rolling 12 months ended March 31, 2020.
Commercial Paper
Aon Corporation has established a U.S. commercial paper program (the “U.S. Program”) and Aon UK has established a European multi-currency commercial paper program (the “European Program” and, together with the U.S. Program, the “Commercial Paper 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 $1.65 billion at March 31, 2020. As of March 31, 2020, the U.S. Program was fully and unconditionally guaranteed by Aon UK and the European Program was fully and unconditionally guaranteed by Aon Corporation. In connection with the Ireland Reorganization, on April 1, 2020, a new guarantee structure for the Commercial Paper Programs was established. Refer to Note 18 “Guarantee of Registered Securities” for further information.
Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position, is as follows (in millions):
As of
 
March 31, 2020
 
December 31, 2019
Commercial paper outstanding
 
$
833

 
$
112


The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages):
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Weighted average commercial paper outstanding
 
$
456

 
$
323

Weighted average interest rate of commercial paper outstanding
 
0.96
%
 
0.49
%

v3.20.1
Income Taxes
3 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The effective tax rate on Net income from continuing operations was 19.3% for the three months ended March 31, 2020. The effective tax rate on Net income from continuing operations was 15.7% for the three months ended March 31, 2019.
For the three months ended March 31, 2020, the tax rate was primarily driven by the geographical distribution of income and certain discrete items, primarily the favorable impact of share-based payments.
For the three months ended March 31, 2019, the tax rate was primarily driven by the geographical distribution of income and certain discrete items, primarily the favorable impact of shared-based payments.
v3.20.1
Shareholders' Equity
3 Months Ended
Mar. 31, 2020
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 June 2017 for a total of $15.0 billion in repurchase authorizations. The Repurchase Program was adopted by Aon Ireland’s Board of Directors on April 1, 2020.
Under the Repurchase Program, the Company’s 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 March 31,
 
2020
 
2019
Shares repurchased
2.2

 
0.6

Average price per share
$
212.78

 
$
161.16

Costs recorded to retained earnings

 

Total repurchase cost
$
461

 
$
100

Additional associated costs
2

 
1

Total costs recorded to retained earnings
$
463

 
$
101


At March 31, 2020, the remaining authorized amount for share repurchases under the Repurchase Program was $1.6 billion. Under the Repurchase Program, the Company has repurchased a total of 130.9 million shares for an aggregate cost of approximately $13.4 billion. Due to COVID-19, the Company has temporarily suspended share repurchase.
Net Income Per Share
Weighted average ordinary shares outstanding are as follows (in millions):
 
Three Months Ended March 31,
 
2020
 
2019
Basic weighted average ordinary shares outstanding
233.2

 
242.2

Dilutive effect of potentially issuable shares
1.3

 
1.5

Diluted weighted average ordinary shares outstanding
234.5

 
243.7


Potentially issuable shares are not included in the computation of Diluted net income per share if their inclusion would be antidilutive. There were no shares and 0.1 million shares excluded from the calculation for the three months ended March 31, 2020 and March 31, 2019, respectively.
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, 2019
$
(12
)
 
$
(1,305
)
 
$
(2,716
)
 
$
(4,033
)
Other comprehensive income (loss) before reclassifications, net
(9
)
 
(395
)
 
1

 
(403
)
Amounts reclassified from accumulated other comprehensive income
 
 


 


 


Amounts reclassified from accumulated other comprehensive income
5

 

 
30

 
35

Tax expense
(1
)
 

 
(7
)
 
(8
)
Amounts reclassified from accumulated other comprehensive income, net (3)
4

 

 
23

 
27

Net current period other comprehensive income (loss)
(5
)
 
(395
)
 
24

 
(376
)
Balance at March 31, 2020
$
(17
)
 
$
(1,700
)
 
$
(2,692
)
 
$
(4,409
)
(1)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Revenue, Interest expense, and Compensation and benefits in the Condensed Consolidated Statements of Income. Refer to Note 14 “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) in the Condensed Consolidated Statements of Income.
(3)
It is the Company’s policy to release income tax effects from accumulated other comprehensive loss using the portfolio approach.
 
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 before reclassifications, net
4

 
131

 
11

 
146

Amounts reclassified from accumulated other comprehensive income
 
 
 
 
 
 
 
Amounts reclassified from accumulated other comprehensive income
5

 

 
26

 
31

Tax expense
(2
)
 

 
(6
)
 
(8
)
Amounts reclassified from accumulated other comprehensive income, net (3)
3

 

 
20

 
23

Net current period other comprehensive income
7

 
131

 
31

 
169

Balance at March 31, 2019
$
(8
)
 
$
(1,188
)
 
$
(2,544
)
 
$
(3,740
)
(1)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Revenue, Interest expense, and Compensation and benefits in the Condensed Consolidated Statements of Income. Refer to Note 14 “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) in the Condensed Consolidated Statements of Income.
(3)
It is the Company’s policy to release income tax effects from accumulated other comprehensive loss using the portfolio approach.
v3.20.1
Employee Benefits
3 Months Ended
Mar. 31, 2020
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 major pension plans, which are located in the Netherlands and Canada. 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 March 31,
 
U.K.
 
U.S.
 
Other
 
2020
 
2019
 
2020
 
2019
 
2020
 
2019
Service cost
$

 
$

 
$

 
$

 
$

 
$

Interest cost
22

 
28

 
21

 
27

 
4

 
7

Expected return on plan assets, net of administration expenses
(39
)
 
(49
)
 
(33
)
 
(34
)
 
(8
)
 
(10
)
Amortization of prior-service cost

 
1

 

 
1

 

 

Amortization of net actuarial loss
7

 
7

 
17

 
13

 
3

 
3

Total net periodic (benefit) cost
$
(10
)
 
$
(13
)
 
$
5

 
$
7

 
$
(1
)
 
$


Contributions
Assuming no additional contributions are agreed to with, or required by, the pension plan trustees, the Company expects to make total cash contributions of approximately $5 million, $99 million, and $19 million, (at December 31, 2019 exchange rates) to its significant U.K., U.S., and other major pension plans, respectively, during 2020. The following table summarizes contributions made to the Company’s significant pension plans (in millions):
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Contributions to U.K. pension plans
 
$
2

 
$
23

Contributions to U.S. pension plans
 
31

 
17

Contributions to other major pension plans
 
2

 
7

Total contributions
 
$
35

 
$
47


v3.20.1
Share-Based Compensation Plans
3 Months Ended
Mar. 31, 2020
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 March 31,
 
2020
 
2019
Restricted share units (“RSUs”)
$
58

 
$
63

Performance share awards (“PSAs”)
14

 
23

Employee share purchase plans
4

 
3

Total share-based compensation expense 
$
76


$
89


Restricted Share Units
RSUs generally vest between three and five years. The fair value of RSUs is based upon the market value of the Company’s Class A 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 (shares in thousands, except fair value):
 
Three Months Ended March 31,
 
2020
 
2019
 
Shares
 
Fair Value (1) 
 
Shares
 
Fair Value (1) 
Non-vested at beginning of period
3,634

 
$
143

 
4,208

 
$
120

Granted
432

 
$
179

 
517

 
$
170

Vested
(583
)
 
$
141

 
(677
)
 
$
117

Forfeited
(79
)
 
$
146

 
(41
)
 
$
121

Non-vested at end of period
3,403

 
$
147

 
4,007

 
$
127


(1)
Represents per share weighted average fair value of award at date of grant.
Unamortized deferred compensation expense amounted to $359 million as of March 31, 2020, with a remaining weighted average amortization period of approximately two 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 issuance 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 the Company’s Class A 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 three months ended March 31, 2020 and the years ended December 31, 2019 and 2018, respectively (shares in thousands and dollars in millions, except fair value):
 
March 31,
2020
 
December 31,
2019
 
December 31,
2018
Target PSAs granted during period
487

 
467

 
564

Weighted average fair value per share at date of grant
$
160

 
$
165

 
$
134

Number of shares that would be issued based on current performance levels
487

 
451

 
818

Unamortized expense, based on current performance levels
$
78

 
$
42

 
$
24


v3.20.1
Derivatives and Hedging
3 Months Ended
Mar. 31, 2020
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, and 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 two 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 one 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)
 
March 31,
2020
 
December 31,
2019
 
March 31,
2020
 
December 31,
2019
 
March 31,
2020
 
December 31,
2019
Foreign exchange contracts
 

 
 

 
 

 
 

 
 

 
 

Accounted for as hedges
$
537

 
$
579

 
$
8

 
$
16

 
$
(3
)
 
$
1

Not accounted for as hedges (3)
385

 
297

 
4

 
2

 
(1
)
 

Total
$
922

 
$
876

 
$
12

 
$
18

 
$
(4
)
 
$
1

(1)
Included within Other current assets ($7 million at March 31, 2020 and $7 million at December 31, 2019) or Other non-current assets ($5 million at March 31, 2020 and $11 million at December 31, 2019).
(2)
Included within Other current liabilities ($3 million at March 31, 2020 and $1 million at December 31, 2019) or Other non-current liabilities ($1 million at March 31, 2020 and $0 million at December 31, 2019).
(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 Condensed Consolidated Financial Statements are as follows (in millions):
 
Three Months Ended March 31,
 
2020
 
2019
(Loss) Gain recognized in Accumulated other comprehensive loss
$
(11
)
 
$
4


The amounts of derivative gains (losses) reclassified from Accumulated other comprehensive loss in the Condensed Consolidated Statements of Income are as follows (in millions):
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Total revenue
 
$
(4
)
 
$
(4
)
Interest expense
 
(1
)
 
(1
)
Total
 
$
(5
)
 
$
(5
)

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 12 months.
The Company recorded a loss of $35 million and a gain of $5 million in Other income (expense) during the three months ended March 31, 2020 and March 31, 2019, respectively, for foreign exchange derivatives not designated or qualifying 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.
The Company had €101 million ($112 million at March 31, 2020 exchange rates) and €101 million ($112 million at December 31, 2019 exchange rates) of outstanding euro-denominated commercial paper at March 31, 2020 and December 31, 2019, respectively, designated as a hedge of the foreign currency exposure of its net investment in its European operations. The unrealized gain recognized in Accumulated other comprehensive loss related to the net investment non-derivative hedging instrument was $30 million and $29 million, as of March 31, 2020 and December 31, 2019, respectively.
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 months ended March 31, 2020 and 2019.
v3.20.1
Fair Value Measurements and Financial Instruments
3 Months Ended
Mar. 31, 2020
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 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, 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 internal Company 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 March 31, 2020 and December 31, 2019 (in millions):
 
 
 
Fair Value Measurements Using
 
Balance at March 31, 2020
 
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)
$
2,252

 
$
2,252

 
$

 
$

Other investments
 

 
 

 
 

 
 

Government bonds
$
1

 
$

 
$
1

 
$

Equity investments
$
1

 
$

 
$
1

 
$

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
13

 
$

 
$
13

 
$

Liabilities
 

 
 

 
 

 
 

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
5

 
$

 
$
5

 
$


 
 
 
Fair Value Measurements Using
 
Balance at December 31, 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)
$
2,007

 
$
2,007

 
$

 
$

Other investments
 

 
 

 
 

 
 

Government bonds
$
1

 
$

 
$
1

 
$

Equity investments
$
1

 
$

 
$
1

 
$

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
21

 
$

 
$
21

 
$

Liabilities
 

 
 

 
0

 
 

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
4

 
$

 
$
4

 
$

(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 14 “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 the three months ended March 31, 2020 and 2019. The Company recognized no realized or unrealized gains or losses in the Condensed Consolidated Statements of Income during the three months ended March 31, 2020 and 2019 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):
 
March 31, 2020
 
December 31, 2019
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Current portion of long-term debt
$
999

 
$
1,004

 
$
600

 
$
614

Long-term debt
$
6,227

 
$
6,837

 
$
6,627

 
$
7,442


v3.20.1
Claims, Lawsuits and Other Contingencies
3 Months Ended
Mar. 31, 2020
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 expense 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, 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
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 ($315 million at March 31, 2020 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 the 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.
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 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.
Guarantee of Registered Securities
See Note 18 “Guarantee of Registered Securities” for information regarding the Company’s guarantees of obligations of its subsidiaries arising under issued and outstanding debt securities.
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 March 31, 2020, the undiscounted maximum potential future payments under the lease guarantee is $66 million, with an estimated fair value of $11 million. No cash payments were made in connection to the lease commitments during the three months ended March 31, 2020.
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 March 31, 2020, the undiscounted maximum potential future payments under the performance guarantees were $139 million, with an estimated fair value of $1 million. No cash payments were made in connection to the performance guarantees during the three months ended March 31, 2020.
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 $71 million at March 31, 2020, compared to $73 million at December 31, 2019. 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 $70 million at March 31, 2020 compared to $110 million at December 31, 2019.
v3.20.1
Segment Information
3 Months Ended
Mar. 31, 2020
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 the 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 in the Condensed Consolidated Statements of Income. Refer to Note 3 “Revenue from Contracts with Customers” for further information on revenue by principal service line.
v3.20.1
Guarantee of Registered Securities
3 Months Ended
Mar. 31, 2020
Guarantee of Registered Securities [Abstract]  
Guarantee of Registered Securities Guarantee of Registered Securities
In connection with the Company’s 2012 redomestication to the U.K. (the “2012 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 April 2, 2012, among Aon Corporation, Aon UK, and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) (amending and restating the Indenture, dated September 10, 2010, between Aon Corporation and the Trustee); (2) Amended and Restated Indenture, dated April 2, 2012, among Aon Corporation, Aon UK and the Trustee (amending and restating the Indenture, dated December 16, 2002, between Aon Corporation and the Trustee); and (3) Amended and Restated Indenture, dated April 2, 2012, among Aon Corporation, Aon UK and the Trustee (amending and restating the Indenture, dated January 13, 1997, between Aon Corporation and the Trustee, as supplemented by the First Supplemental Indenture, dated January 13, 1997).
In connection with the Ireland Reorganization, on April 1, 2020 Aon Ireland and Aon Global Holdings Limited, a company incorporated under the laws of England and Wales, entered into various agreements pursuant to which they agreed to guarantee the obligations of Aon Corporation arising under issued and outstanding debt securities, which were previously guaranteed solely by Aon UK, including the: 5.00% Notes due September 2020; 2.20% Notes due November 2022; 8.205% Notes due January 2027; 4.50% Senior Notes due December 2028; 3.75% Senior Notes due May 2029; and 6.25% Notes due September 2040 (collectively, the “Aon Corporation Notes). Aon Corporation, Aon UK, and Aon Global Holdings Limited are indirect wholly owned subsidiaries of Aon Ireland. All guarantees of Aon Ireland, Aon UK, and Aon Global Holdings Limited of the Aon Corporation Notes are joint and several as well as full and unconditional. There are no subsidiaries other than those listed above that guarantee the Aon Corporation Notes.
In addition, in connection with the Ireland Reorganization, on April 1, 2020 Aon Ireland and Aon Global Holdings Limited entered into various agreements pursuant to which they guaranteed the obligations of Aon UK arising under issued and outstanding debt securities, which were previously guaranteed solely by Aon Corporation, including the: 4.25% Notes due December 2042 exchanged for Aon Corporation’s 8.205% Notes due January 2027; 4.45% Notes due May 2043; 4.00% Notes due November 2023; 2.875% Notes due May 2026; 3.50% Notes due June 2024; 4.60% Notes due June 2044; 4.75% Notes due May 2045; 2.80% Notes due March 2021; and 3.875% Notes due December 2025 (collectively, the “Aon UK Notes”). All guarantees of Aon Ireland, Aon Global Holdings Limited, and Aon Corporation of the Aon UK Notes are joint and several as well as full and unconditional. There are no subsidiaries other than those listed above that guarantee the Aon UK Notes.
The Company has reflected these new guarantees in the Condensed Consolidating Statements of Income, Condensed Consolidating Statements of Comprehensive Income, and Condensed Consolidating Statements of Cash Flows for the three months ended March 31, 2020 and 2019, and in the Condensed Consolidating Statements of Financial Position as of March 31, 2020 and December 31, 2019.
In 2019, Aon Corporation obtained indirect ownership of subsidiaries that were previously indirectly owned by Aon UK. The financial results of both subsidiaries are included in the Other Non-Guarantor Subsidiaries column of the Condensed Consolidating Financial Statements.
Aon Ireland was not part of the Aon group until November 2019, therefore no balances are reflected in the Condensed Consolidating Statement of Income, Condensed Consolidating Statement of Comprehensive Income, and the Condensed Consolidating Statement of Cash Flows for the period ended March 31, 2019.
The following tables set forth the Condensed Consolidating Statements of Income and Condensed Consolidating Statements of Comprehensive Income for the three months ended March 31, 2020 and 2019, Condensed Consolidating Statements of Financial Position as of March 31, 2020 and December 31, 2019, and Condensed Consolidating Statements of Cash Flows for the three months ended March 31, 2020 and 2019, in accordance with Rule 3-10 of Regulation S-X. The Condensed Consolidating Financial Information includes the accounts of Aon Ireland, the accounts of Aon UK, the accounts of Aon Global Holdings Limited, 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 March 31, 2020
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$

 
$

 
$
3,219

 
$

 
$
3,219

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 

 
12

 

 
(12
)
 
1,522

 

 
1,522

Information technology
 

 

 

 

 
111

 

 
111

Premises
 

 

 

 
5

 
68

 

 
73

Depreciation of fixed assets
 

 

 

 

 
41

 

 
41

Amortization and impairment of intangible assets
 

 

 

 

 
97

 

 
97

Other general expense
 

 
26

 

 
1

 
315

 

 
342

Total operating expenses
 

 
38

 

 
(6
)
 
2,154

 

 
2,186

Operating income (loss)
 

 
(38
)
 

 
6

 
1,065

 

 
1,033

Interest income
 

 

 

 
10

 
14

 
(22
)
 
2

Interest expense
 

 
(54
)
 
(11
)
 
(39
)
 
(1
)
 
22

 
(83
)
Intercompany interest income (expense)
 

 
8

 

 
(113
)
 
105

 

 

Intercompany other income (expense)
 

 
81

 

 
(128
)
 
47

 

 

Other income (expense)
 

 

 

 
(42
)
 
72

 
(1
)
 
29

Income (loss) from continuing operations before income taxes
 

 
(3
)
 
(11
)
 
(306
)
 
1,302

 
(1
)
 
981

Income tax expense (benefit)
 

 
(17
)
 
(2
)
 
(48
)
 
256

 

 
189

Net income (loss) from continuing operations
 

 
14

 
(9
)
 
(258
)
 
1,046

 
(1
)
 
792

Net income (loss) from discontinued operations
 

 

 

 

 
(1
)
 

 
(1
)
Net income (loss) before equity in earnings of subsidiaries
 

 
14

 
(9
)
 
(258
)
 
1,045

 
(1
)
 
791

Equity in earnings of subsidiaries
 
773

 
759

 
614

 
862

 

 
(3,008
)
 

Net income
 
773

 
773

 
605

 
604

 
1,045

 
(3,009
)
 
791

Less: Net income attributable to noncontrolling interests
 

 

 

 

 
19

 

 
19

Net income attributable to Aon shareholders
 
$
773

 
$
773

 
$
605

 
$
604

 
$
1,026

 
$
(3,009
)
 
$
772

Condensed Consolidating Statement of Income
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$

 
$

 
$
3,143

 
$

 
$
3,143

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 

 
20

 

 
8

 
1,556

 

 
1,584

Information technology
 

 

 

 

 
117

 

 
117

Premises
 

 

 

 
4

 
83

 

 
87

Depreciation of fixed assets
 

 

 

 

 
40

 

 
40

Amortization and impairment of intangible assets
 

 

 

 

 
97

 

 
97

Other general expense
 

 

 

 
1

 
345

 

 
346

Total operating expenses
 

 
20

 

 
13

 
2,238

 

 
2,271

Operating income (loss)
 

 
(20
)
 

 
(13
)
 
905

 

 
872

Interest income
 

 

 

 
9

 
20

 
(27
)
 
2

Interest expense
 

 
(46
)
 
(24
)
 
(28
)
 
(1
)
 
27

 
(72
)
Intercompany interest income (expense)
 

 
4

 

 
(116
)
 
112

 

 

Intercompany other income (expense)
 

 
31

 

 
(94
)
 
63

 

 

Other income (expense)
 

 
5

 

 
(11
)
 
8

 
(2
)
 

Income (loss) from continuing operations before income taxes
 

 
(26
)
 
(24
)
 
(253
)
 
1,107

 
(2
)
 
802

Income tax expense (benefit)
 

 
(5
)
 
(5
)
 
(42
)
 
178

 

 
126

Net income (loss) from continuing operations
 

 
(21
)
 
(19
)
 
(211
)
 
929

 
(2
)
 
676

Net income (loss) from discontinued operations
 

 

 

 

 

 

 

Net income (loss) before equity in earnings of subsidiaries
 

 
(21
)
 
(19
)
 
(211
)
 
929

 
(2
)
 
676

Equity in earnings of subsidiaries
 

 
682

 
619

 
724

 

 
(2,025
)
 

Net income
 

 
661

 
600

 
513

 
929

 
(2,027
)
 
676

Less: Net income attributable to noncontrolling interests
 

 

 

 

 
17

 

 
17

Net income attributable to Aon shareholders
 
$

 
$
661

 
$
600

 
$
513

 
$
912

 
$
(2,027
)
 
$
659





Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended March 31, 2020
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
773

 
$
773

 
$
605

 
$
604

 
$
1,045

 
$
(3,009
)
 
$
791

Less: Net income attributable to noncontrolling interests
 

 

 

 

 
19

 

 
19

Net income attributable to Aon shareholders
 
773

 
773

 
605

 
604

 
1,026

 
(3,009
)
 
772

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

 

 

 
(2
)
 
(3
)
 

 
(5
)
Foreign currency translation adjustments
 

 

 

 

 
(398
)
 
1

 
(397
)
Postretirement benefit obligation
 

 

 

 
13

 
11

 

 
24

Total other comprehensive income (loss)
 

 

 

 
11

 
(390
)
 
1

 
(378
)
Equity in other comprehensive income (loss) of subsidiaries, net of tax
 
(377
)
 
(377
)
 
(370
)
 
(381
)
 

 
1,505

 

Less: Other comprehensive loss attributable to noncontrolling interests
 

 

 

 

 
(2
)
 

 
(2
)
Total other comprehensive income (loss) attributable to Aon shareholders
 
(377
)
 
(377
)
 
(370
)
 
(370
)
 
(388
)
 
1,506

 
(376
)
Comprehensive income attributable to Aon shareholders
 
$
396

 
$
396

 
$
235

 
$
234

 
$
638

 
$
(1,503
)
 
$
396

Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$

 
$
661

 
$
600

 
$
513

 
$
929

 
$
(2,027
)
 
$
676

Less: Net income attributable to noncontrolling interests
 

 

 

 

 
17

 

 
17

Net income attributable to Aon shareholders
 

 
661

 
600

 
513

 
912

 
(2,027
)
 
659

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

 

 

 
2

 
5

 

 
7

Foreign currency translation adjustments
 

 

 

 

 
131

 
2

 
133

Postretirement benefit obligation
 

 

 

 
22

 
9

 

 
31

Total other comprehensive income (loss)
 

 

 

 
24

 
145

 
2

 
171

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

 
167

 
139

 
115

 

 
(421
)
 

Less: Other comprehensive loss attributable to noncontrolling interests
 

 

 

 

 
2

 

 
2

Total other comprehensive income (loss) attributable to Aon shareholders
 

 
167

 
139

 
139

 
143

 
(419
)
 
169

Comprehensive income attributable to Aon shareholders
 
$

 
$
828

 
$
739

 
$
652

 
$
1,055

 
$
(2,446
)
 
$
828



Condensed Consolidating Statement of Financial Position
 
 
As of March 31, 2020
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Assets
 
 
 
 

 
 
 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$

 
$
36

 
$
194

 
$
1,698

 
$
(1,238
)
 
$
690

Short-term investments
 

 

 

 
57

 
113

 

 
170

Receivables, net
 

 

 

 

 
3,554

 

 
3,554

Fiduciary assets
 

 

 

 

 
12,401

 

 
12,401

Current intercompany receivables
 

 
208

 
90

 
2,710

 
14,875

 
(17,883
)
 

Other current assets
 

 

 

 
4

 
526

 

 
530

Total current assets
 

 
208

 
126

 
2,965

 
33,167

 
(19,121
)
 
17,345

Goodwill
 

 

 

 

 
8,293

 

 
8,293

Intangible assets, net
 

 

 

 

 
746

 

 
746

Fixed assets, net
 

 

 

 

 
666

 

 
666

Operating lease right-of-use assets
 

 

 

 
103

 
794

 

 
897

Deferred tax assets
 

 
89

 
4

 
589

 
150

 
(194
)
 
638

Prepaid pension
 

 

 

 
7

 
1,157

 

 
1,164

Non-current intercompany receivables
 

 
397

 

 
261

 
7,044

 
(7,702
)
 

Other non-current assets
 

 

 

 
25

 
508

 

 
533

Investment in subsidiary
 
3,169

 
8,650

 
8,871

 
19,973

 

 
(40,663
)
 

Total assets
 
$
3,169

 
$
9,344

 
$
9,001

 
$
23,923

 
$
52,525

 
$
(67,680
)
 
$
30,282

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 
 
 

 
 
 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$

 
$
1,345

 
$

 
$
49

 
$
1,393

 
$
(1,238
)
 
$
1,549

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

 
696

 

 
1,136

 
52

 

 
1,884

Fiduciary liabilities
 

 

 

 

 
12,401

 

 
12,401

Current intercompany payables
 

 
310

 
61

 
16,321

 
1,191

 
(17,883
)
 

Other current liabilities
 

 

 

 
82

 
1,195

 

 
1,277

Total current liabilities
 

 
2,351

 
61

 
17,588

 
16,232

 
(19,121
)
 
17,111

Long-term debt
 

 
3,822

 

 
2,405

 

 

 
6,227

Non-current operating lease liabilities
 

 

 

 
136

 
774

 

 
910

Deferred tax liabilities
 

 

 

 

 
383

 
(194
)
 
189

Pension, other postretirement, and postemployment liabilities
 

 

 

 
1,287

 
368

 

 
1,655

Non-current intercompany payables
 

 

 

 
7,210

 
492

 
(7,702
)
 

Other non-current liabilities
 

 
2

 

 
115

 
813

 

 
930

Total liabilities
 

 
6,175

 
61

 
28,741

 
19,062

 
(27,017
)
 
27,022

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
3,169

 
3,169

 
8,940

 
(4,818
)
 
33,372

 
(40,663
)
 
3,169

Noncontrolling interests
 

 

 

 

 
91

 

 
91

Total equity
 
3,169

 
3,169

 
8,940

 
(4,818
)
 
33,463

 
(40,663
)
 
3,260

Total liabilities and equity
 
$
3,169

 
$
9,344

 
$
9,001

 
$
23,923

 
$
52,525

 
$
(67,680
)
 
$
30,282

Condensed Consolidating Statement of Financial Position
 
 
As of December 31, 2019
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Assets
 
 
 
 

 
 
 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$

 
$

 
$
2,271

 
$
2,619

 
$
(4,100
)
 
$
790

Short-term investments
 

 

 

 
28

 
110

 

 
138

Receivables, net
 

 

 

 

 
3,112

 

 
3,112

Fiduciary assets
 

 

 

 

 
11,834

 

 
11,834

Current intercompany receivables
 

 
246

 
89

 
1,214

 
12,710

 
(14,259
)
 

Other current assets
 

 

 

 
7

 
595

 

 
602

Total current assets
 

 
246

 
89

 
3,520

 
30,980

 
(18,359
)
 
16,476

Goodwill
 

 

 

 

 
8,165

 

 
8,165

Intangible assets, net
 

 

 

 

 
783

 

 
783

Fixed assets, net
 

 

 

 

 
621

 

 
621

Operating lease right-of-use assets
 

 

 

 
110

 
819

 

 
929

Deferred tax assets
 

 
89

 
4

 
577

 
165

 
(190
)
 
645

Prepaid pension
 

 

 

 
7

 
1,209

 

 
1,216

Non-current intercompany receivables
 

 
868

 

 
261

 
7,046

 
(8,175
)
 

Other non-current assets
 

 

 

 
32

 
538

 

 
570

Investment in subsidiary
 
3,375

 
8,899

 
12,211

 
19,470

 

 
(43,955
)
 

Total assets
 
$
3,375

 
$
10,102

 
$
12,304

 
$
23,977

 
$
50,326

 
$
(70,679
)
 
$
29,405

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 
 
 

 
 
 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$

 
$
2,157

 
$
1,994

 
$
56

 
$
1,832

 
$
(4,100
)
 
$
1,939

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

 
112

 

 
600

 

 

 
712

Fiduciary liabilities
 

 

 

 

 
11,834

 

 
11,834

Current intercompany payables
 

 
234

 
61

 
12,978

 
986

 
(14,259
)
 

Other current liabilities
 

 

 

 
80

 
1,006

 

 
1,086

Total current liabilities
 

 
2,503

 
2,055

 
13,714

 
15,658

 
(18,359
)
 
15,571

Long-term debt
 

 
4,223

 

 
2,404

 

 

 
6,627

Non-current operating lease liabilities
 

 

 

 
143

 
801

 

 
944

Deferred tax liabilities
 

 

 

 

 
389

 
(190
)
 
199

Pension, other postretirement, and postemployment liabilities
 

 

 

 
1,348

 
390

 

 
1,738

Non-current intercompany payables
 

 

 

 
7,212

 
963

 
(8,175
)
 

Other non-current liabilities
 

 
1

 

 
113

 
763

 

 
877

Total liabilities
 

 
6,727

 
2,055

 
24,934

 
18,964

 
(26,724
)
 
25,956

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
3,375

 
3,375

 
10,249

 
(957
)
 
31,288

 
(43,955
)
 
3,375

Noncontrolling interests
 

 

 

 

 
74

 

 
74

Total equity
 
3,375

 
3,375

 
10,249

 
(957
)
 
31,362

 
(43,955
)
 
3,449

Total liabilities and equity
 
$
3,375

 
$
10,102

 
$
12,304

 
$
23,977

 
$
50,326

 
$
(70,679
)
 
$
29,405


Condensed Consolidating Statement of Cash Flows
 
 
Three Months Ended March 31, 2020
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$

 
$
1,561

 
$
3,648

 
$
(512
)
 
$
852

 
$
(5,211
)
 
$
338

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 

 

 
2

 
4

 

 
6

Payments for investments
 

 
(450
)
 
(518
)
 
(30
)
 
(13
)
 
968

 
(43
)
Net sales (purchases) of short-term investments - non-fiduciary
 

 

 

 
(28
)
 
(10
)
 

 
(38
)
Acquisition of businesses, net of cash acquired
 

 

 

 

 
(334
)
 

 
(334
)
Sale of businesses, net of cash sold
 

 

 

 

 
30

 

 
30

Capital expenditures
 

 

 

 

 
(59
)
 

 
(59
)
Cash provided by (used for) investing activities
 

 
(450
)
 
(518
)
 
(56
)
 
(382
)
 
968

 
(438
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share repurchase
 

 
(463
)
 

 

 

 

 
(463
)
Advances from (to) affiliates
 

 
(618
)
 
(3,094
)
 
(2,044
)
 
(1,349
)
 
7,105

 

Issuance of shares for employee benefit plans
 

 
(112
)
 

 

 

 

 
(112
)
Issuance of debt
 

 
457

 

 
1,603

 

 
 
 
2,060

Repayment of debt
 

 
(273
)
 

 
(1,068
)
 

 

 
(1,341
)
Cash dividends to shareholders
 

 
(102
)
 

 

 

 

 
(102
)
Noncontrolling interests and other financing activities
 

 

 

 

 
40

 

 
40

Cash provided by (used for) financing activities
 

 
(1,111
)
 
(3,094
)
 
(1,509
)
 
(1,309
)
 
7,105

 
82

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 

 

 

 

 
(82
)
 

 
(82
)
Net increase (decrease) in cash and cash equivalents
 

 

 
36

 
(2,077
)
 
(921
)
 
2,862

 
(100
)
Cash and cash equivalents at beginning of period
 

 

 

 
2,271

 
2,619

 
(4,100
)
 
790

Cash and cash equivalents at end of period
 
$

 
$

 
$
36

 
$
194

 
$
1,698

 
$
(1,238
)
 
$
690


Condensed Consolidating Statement of Cash Flows
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$

 
$
(11
)
 
$
529

 
$
(34
)
 
$
143

 
$
(553
)
 
$
74

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 

 
72

 
8

 
4

 
(72
)
 
12

Payments for investments
 

 

 

 
(9
)
 
(77
)
 
72

 
(14
)
Net sales (purchases) of short-term investments - non-fiduciary
 

 

 

 
9

 
32

 

 
41

Acquisition of businesses, net of cash acquired
 

 

 

 

 
(15
)
 

 
(15
)
Sale of businesses, net of cash sold
 

 

 

 

 
6

 

 
6

Capital expenditures
 
 
 
 
 
 
 

 
(57
)
 

 
(57
)
Cash provided by (used for) investing activities
 

 

 
72

 
8

 
(107
)
 

 
(27
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share repurchase
 

 
(100
)
 

 

 

 

 
(100
)
Advances from (to) affiliates
 

 
305

 
(601
)
 
(265
)
 
(550
)
 
1,111

 

Issuance of shares for employee benefit plans
 

 
(98
)
 

 

 

 

 
(98
)
Issuance of debt
 

 
384

 

 
485

 
2

 

 
871

Repayment of debt
 

 
(384
)
 

 
(310
)
 

 

 
(694
)
Cash dividends to shareholders
 

 
(96
)
 

 

 

 

 
(96
)
Noncontrolling interests and other financing activities
 

 

 

 

 
(23
)
 

 
(23
)
Cash provided by (used for) financing activities
 

 
11

 
(601
)
 
(90
)
 
(571
)
 
1,111

 
(140
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 

 

 

 

 
37

 

 
37

Net increase (decrease) in cash and cash equivalents
 

 

 

 
(116
)
 
(498
)
 
558

 
(56
)
Cash and cash equivalents at beginning of period
 

 

 

 
862

 
3,473

 
(3,679
)
 
656

Cash and cash equivalents at end of period
 
$

 
$

 
$

 
$
746

 
$
2,975

 
$
(3,121
)
 
$
600


v3.20.1
Subsequent Events
3 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Ireland Reorganization
On April 1, 2020, a scheme of arrangement under English law was completed pursuant to which the Class A ordinary shares of Aon UK were cancelled and the holders thereof received, on a one-for-one basis, Class A ordinary shares of Aon Ireland, as described in the proxy statement filed with the SEC on December 20, 2019. Equity incentive and compensation plans were assumed by Aon Ireland and amended to provide that those plans will now provide for the award and issuance of Class A ordinary shares of Aon Ireland instead of Class A ordinary shares of Aon UK, on a one-for-one basis. Beginning on April 1, 2020, Aon Ireland’s principal executive office address is Metropolitan Building, James Joyce Street, Dublin 1, Ireland, not 122 Leadenhall Street, London, England. Aon Ireland is a tax resident of Ireland.
The Share Repurchase Program, which related to Class A ordinary shares of Aon UK and preceded the Ireland Reorganization, was adopted by Aon Ireland’s Board of Directors.
Commercial Paper
On April 1, 2020 the Company entered into an agreement increasing the aggregate outstanding borrowings under its U.S. commercial paper program by $300 million, to an aggregate amount equal to $900 million. The U.S. program remains fully backed by Aon’s committed credit facilities.
Colleague Compensatory Arrangements
On April 24, 2020, due to the COVID-19 pandemic and the resulting economic disruption, the Board of Directors of the Company determined to temporarily reduce the annual base salaries of the Company’s named executive officers and the cash compensation of each of the Company’s non-executive directors. Each of the named executive officers and non-executive directors have agreed to a temporary 50% reduction in his or her cash compensation from May 1, 2020 through December 31, 2020, or until such other date as decided by the Company.
Additionally, on April 27, 2020 the Company announced it will apply a temporary salary reduction of up to 20% to a broader colleague base. The reductions are being applied using a tailored approach based on a set of criteria, including considerations for cost-of-living, to determine the most equitable way to apply this temporary reduction.
v3.20.1
Accounting Principles and Practices (Policies)
3 Months Ended
Mar. 31, 2020
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. 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 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, foreign currency exchange rate movements, and, recently, impacts from the COVID-19 pandemic 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
Cloud Computing Arrangements
In August 2018, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance on implementation costs incurred in a cloud computing arrangement that is a service contract. The new guidance aligns capitalization requirements for certain implementation costs incurred in cloud computing arrangements with existing requirements for capitalizing implementation costs for internal-use software. These costs will be deferred over the term of the hosting arrangement, including any optional renewal periods the entity is reasonably certain to exercise. An entity may apply the new guidance on either a prospective or retrospective basis. The new guidance was effective for Aon in the first quarter of 2020 and was adopted on a prospective basis for all implementation costs incurred after the date of initial adoption. The adoption of this guidance had no significant impact on the Financial Statements.
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. The new guidance was effective for Aon in the first quarter of 2020 and was adopted on a prospective basis. The adoption of this guidance had no 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. The Company adopted the new standard as of January 1, 2020 using the modified retrospective approach. Under this approach, prior periods were not restated. Rather, the cumulative effect of initially applying the new standard was recognized as an adjustment to retained earnings. Upon the adoption of this guidance on January 1, 2020, the Company recognized a cumulative adjustment of $6 million to decrease retained earnings.
The Company’s estimate for allowance for credit losses with respect to receivables is based on a combination of factors, including evaluation of forward-looking information, historical write-offs, aging of balances, and other qualitative and quantitative analyses.
Accounting Standards Issued But Not Yet Adopted
Simplifying the Accounting for Income Taxes
In December 2019, the FASB issued new accounting guidance that simplifies the accounting for income taxes by eliminating some exceptions to the general approach in the existing guidance. It also clarifies certain aspects of the existing guidance to promote more consistent application. The new guidance is effective for Aon in the first quarter of 2021, with early adoption permitted. The Company is currently evaluating the impact that the guidance will have on the Financial Statements and the period of adoption.
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.
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, and 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 two 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 one 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 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, 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 internal Company 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.
v3.20.1
Revenue from Contracts with Customers (Tables)
3 Months Ended
Mar. 31, 2020
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 March 31,
 
 
2020
 
2019
Commercial Risk Solutions
 
$
1,146

 
$
1,118

Reinsurance Solutions
 
848

 
788

Retirement Solutions
 
397

 
420

Health Solutions
 
502

 
486

Data & Analytic Services
 
331

 
336

Elimination
 
(5
)
 
(5
)
Total revenue
 
$
3,219

 
$
3,143

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 March 31,
 
 
2020
 
2019
United States
 
$
1,227

 
$
1,161

Americas other than United States
 
228

 
226

United Kingdom
 
500

 
452

Europe, Middle East, & Africa other than United Kingdom
 
978

 
1,009

Asia Pacific
 
286

 
295

Total revenue
 
$
3,219

 
$
3,143


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 March 31,
 
 
2020
 
2019
Balance at beginning of period
 
$
335

 
$
329

Additions
 
318

 
346

Amortization
 
(416
)
 
(439
)
Impairment
 

 

Foreign currency translation and other
 
(8
)
 

Balance at end of period
 
$
229

 
$
236



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 March 31,
 
 
2020
 
2019
Balance at beginning of period
 
$
171

 
$
156

Additions
 
12

 
9

Amortization
 
(12
)
 
(11
)
Impairment
 

 

Foreign currency translation and other
 
(4
)
 
1

Balance at end of period
 
$
167

 
$
155


v3.20.1
Other Financial Data (Tables)
3 Months Ended
Mar. 31, 2020
Other Financial Data [Abstract]  
Schedule of Other Income (Expense)
Other income (expense) consists of the following (in millions):
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Foreign currency remeasurement
 
$
42

 
$
(11
)
Disposal of businesses
 
25

 
5

Pension and other postretirement
 
4

 
4

Equity earnings
 
1

 
1

Financial instruments
 
(44
)
 
1

Other
 
1

 

Total
 
$
29

 
$


Schedule of Allowance for Doubtful Accounts
An analysis of the allowance for doubtful accounts is as follows (in millions):
 
 
Three Months Ended March 31,
 
 
2020 (1)
 
2019
Balance at December 31
 
$
70

 
$
64

Adoption of new accounting guidance (2)
 
7

 

Balance at January 1
 
77

 
64

Provision
 
9

 
8

Accounts written off, net of recoveries
 
(8
)
 
(8
)
Foreign currency translation and other
 
3

 

Balance at end of period
 
$
81

 
$
64


(1)
The Company’s estimate for allowance for credit losses with respect to receivables is based on a combination of factors, including evaluation of forward-looking information, historical write-offs, aging of balances, and other qualitative and quantitative analyses. Refer to Note 2 “Accounting Principles and Practices” for further information.
(2)
The allowance for doubtful accounts resulted in a $7 million charge from the adoption of the new accounting standard on the measurement of credit losses. After tax impacts, this resulted in a $6 million decrease to Retained earnings. Refer to Note 2 “Accounting Principles and Practices” for further information.
Schedule of Other Current Assets
The components of Other current assets are as follows (in millions):
As of
March 31,
2020
 
December 31,
2019
Costs to fulfill contracts with customers (1)
$
229

 
$
335

Prepaid expenses
156

 
97

Taxes receivable
79

 
88

Other (2)
66

 
82

Total
$
530

 
$
602


(1)
Refer to Note 3 “Revenue from Contracts with Customers” for further information.
(2)
December 31, 2019 includes $4 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
March 31,
2020
 
December 31,
2019
Costs to obtain contracts with customers (1)
$
167

 
$
171

Taxes receivable
101

 
102

Leases
93

 
100

Investments
52

 
53

Other
120

 
144

Total
$
533

 
$
570


(1)
Refer to Note 3 “Revenue from Contracts with Customers” for further information.
Schedule of Other Current Liabilities
The components of Other current liabilities are as follows (in millions):
As of
March 31,
2020
 
December 31,
2019
Deferred revenue (1)
$
309

 
$
270

Leases
200

 
210

Taxes payable
196

 
93

Other
572

 
513

Total
$
1,277

 
$
1,086


(1)
During the three months ended March 31, 2020, $117 million was recognized in the Condensed Consolidated Statement of Income. During the 12 months ended December 31, 2019, $532 million was recognized in the Consolidated Statement of Income.
Schedule of Other Non-current Liabilities
The components of Other non-current liabilities are as follows (in millions):
As of
March 31,
2020
 
December 31,
2019
Taxes payable (1)
$
544

 
$
525

Leases
74

 
76

Deferred revenue
72

 
62

Compensation and benefits
41

 
49

Other
199

 
165

Total
$
930

 
$
877


(1)
Includes $145 million for the non-current portion of the one-time mandatory transition tax on accumulated foreign earnings as of March 31, 2020 and December 31, 2019.
v3.20.1
Acquisitions and Dispositions of Businesses (Tables)
3 Months Ended
Mar. 31, 2020
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed The following table includes the preliminary fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisitions (in millions):
Consideration Transferred
 
Three Months Ended March 31, 2020
Cash
 
$
351

Deferred, contingent, and other consideration
 
35

Aggregate consideration transferred
 
$
386

 
 
 
Assets acquired
 
 
Cash and cash equivalents
 
$
17

Receivables
 
7

Goodwill
 
303

Intangible assets
 
74

Current assets
 
2

Non-current assets
 
5

Total assets acquired
 
408

Liabilities assumed
 
 
Current liabilities
 
11

Non-current liabilities
 
11

Total liabilities assumed
 
22

Net assets acquired
 
$
386


v3.20.1
Goodwill and Other Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2020
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 three months ended March 31, 2020 are as follows (in millions):
Balance as of December 31, 2019
$
8,165

Goodwill related to current year acquisitions
303

Goodwill related to disposals
(3
)
Goodwill related to prior year acquisitions

Foreign currency translation
(172
)
Balance as of March 31, 2020
$
8,293


Schedule of Other Intangible Assets by Asset Class
Other intangible assets by asset class are as follows (in millions):
 
March 31, 2020
 
December 31, 2019
 
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
$
2,227

 
$
1,590

 
$
637

 
$
2,264

 
$
1,600

 
$
664

Tradenames
1,026

 
1,005

 
21

 
1,029

 
956

 
73

Technology and other
408

 
320

 
88

 
380

 
334

 
46

Total
$
3,661

 
$
2,915

 
$
746

 
$
3,673

 
$
2,890

 
$
783


Schedule of Estimated Future Amortization Expense on Intangible Assets
The estimated future amortization for finite-lived intangible assets as of March 31, 2020 is as follows (in millions):
Remainder of 2020
$
139

2021
136

2022
96

2023
85

2024
69

2025
51

Thereafter
170

Total
$
746


v3.20.1
Debt (Tables)
3 Months Ended
Mar. 31, 2020
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 March 31,
 
 
2020
 
2019
Weighted average commercial paper outstanding
 
$
456

 
$
323

Weighted average interest rate of commercial paper outstanding
 
0.96
%
 
0.49
%

Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position, is as follows (in millions):
As of
 
March 31, 2020
 
December 31, 2019
Commercial paper outstanding
 
$
833

 
$
112


v3.20.1
Shareholders' Equity (Tables)
3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Schedule of Share Repurchase Agreements
The following table summarizes the Company’s share repurchase activity (in millions, except per share data):
 
Three Months Ended March 31,
 
2020
 
2019
Shares repurchased
2.2

 
0.6

Average price per share
$
212.78

 
$
161.16

Costs recorded to retained earnings

 

Total repurchase cost
$
461

 
$
100

Additional associated costs
2

 
1

Total costs recorded to retained earnings
$
463

 
$
101


Schedule of Components of Weighted Average Number of Shares
Weighted average ordinary shares outstanding are as follows (in millions):
 
Three Months Ended March 31,
 
2020
 
2019
Basic weighted average ordinary shares outstanding
233.2

 
242.2

Dilutive effect of potentially issuable shares
1.3

 
1.5

Diluted weighted average ordinary shares outstanding
234.5

 
243.7


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, 2019
$
(12
)
 
$
(1,305
)
 
$
(2,716
)
 
$
(4,033
)
Other comprehensive income (loss) before reclassifications, net
(9
)
 
(395
)
 
1

 
(403
)
Amounts reclassified from accumulated other comprehensive income
 
 


 


 


Amounts reclassified from accumulated other comprehensive income
5

 

 
30

 
35

Tax expense
(1
)
 

 
(7
)
 
(8
)
Amounts reclassified from accumulated other comprehensive income, net (3)
4

 

 
23

 
27

Net current period other comprehensive income (loss)
(5
)
 
(395
)
 
24

 
(376
)
Balance at March 31, 2020
$
(17
)
 
$
(1,700
)
 
$
(2,692
)
 
$
(4,409
)
(1)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Revenue, Interest expense, and Compensation and benefits in the Condensed Consolidated Statements of Income. Refer to Note 14 “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) in the Condensed Consolidated Statements of Income.
(3)
It is the Company’s policy to release income tax effects from accumulated other comprehensive loss using the portfolio approach.
 
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 before reclassifications, net
4

 
131

 
11

 
146

Amounts reclassified from accumulated other comprehensive income
 
 
 
 
 
 
 
Amounts reclassified from accumulated other comprehensive income
5

 

 
26

 
31

Tax expense
(2
)
 

 
(6
)
 
(8
)
Amounts reclassified from accumulated other comprehensive income, net (3)
3

 

 
20

 
23

Net current period other comprehensive income
7

 
131

 
31

 
169

Balance at March 31, 2019
$
(8
)
 
$
(1,188
)
 
$
(2,544
)
 
$
(3,740
)
(1)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Revenue, Interest expense, and Compensation and benefits in the Condensed Consolidated Statements of Income. Refer to Note 14 “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) in the Condensed Consolidated Statements of Income.
(3)
It is the Company’s policy to release income tax effects from accumulated other comprehensive loss using the portfolio approach.
v3.20.1
Employee Benefits (Tables)
3 Months Ended
Mar. 31, 2020
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 major pension plans, which are located in the Netherlands and Canada. 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 March 31,
 
U.K.
 
U.S.
 
Other
 
2020
 
2019
 
2020
 
2019
 
2020
 
2019
Service cost
$

 
$

 
$

 
$

 
$

 
$

Interest cost
22

 
28

 
21

 
27

 
4

 
7

Expected return on plan assets, net of administration expenses
(39
)
 
(49
)
 
(33
)
 
(34
)
 
(8
)
 
(10
)
Amortization of prior-service cost

 
1

 

 
1

 

 

Amortization of net actuarial loss
7

 
7

 
17

 
13

 
3

 
3

Total net periodic (benefit) cost
$
(10
)
 
$
(13
)
 
$
5

 
$
7

 
$
(1
)
 
$


Schedule of employer's contributions The following table summarizes contributions made to the Company’s significant pension plans (in millions):
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Contributions to U.K. pension plans
 
$
2

 
$
23

Contributions to U.S. pension plans
 
31

 
17

Contributions to other major pension plans
 
2

 
7

Total contributions
 
$
35

 
$
47


v3.20.1
Share-Based Compensation Plans (Tables)
3 Months Ended
Mar. 31, 2020
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 March 31,
 
2020
 
2019
Restricted share units (“RSUs”)
$
58

 
$
63

Performance share awards (“PSAs”)
14

 
23

Employee share purchase plans
4

 
3

Total share-based compensation expense 
$
76


$
89


Restricted share unit activity
The following table summarizes the status of the Company’s RSUs (shares in thousands, except fair value):
 
Three Months Ended March 31,
 
2020
 
2019
 
Shares
 
Fair Value (1) 
 
Shares
 
Fair Value (1) 
Non-vested at beginning of period
3,634

 
$
143

 
4,208

 
$
120

Granted
432

 
$
179

 
517

 
$
170

Vested
(583
)
 
$
141

 
(677
)
 
$
117

Forfeited
(79
)
 
$
146

 
(41
)
 
$
121

Non-vested at end of period
3,403

 
$
147

 
4,007

 
$
127


(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 three months ended March 31, 2020 and the years ended December 31, 2019 and 2018, respectively (shares in thousands and dollars in millions, except fair value):
 
March 31,
2020
 
December 31,
2019
 
December 31,
2018
Target PSAs granted during period
487

 
467

 
564

Weighted average fair value per share at date of grant
$
160

 
$
165

 
$
134

Number of shares that would be issued based on current performance levels
487

 
451

 
818

Unamortized expense, based on current performance levels
$
78

 
$
42

 
$
24


v3.20.1
Derivatives and Hedging (Tables)
3 Months Ended
Mar. 31, 2020
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)
 
March 31,
2020
 
December 31,
2019
 
March 31,
2020
 
December 31,
2019
 
March 31,
2020
 
December 31,
2019
Foreign exchange contracts
 

 
 

 
 

 
 

 
 

 
 

Accounted for as hedges
$
537

 
$
579

 
$
8

 
$
16

 
$
(3
)
 
$
1

Not accounted for as hedges (3)
385

 
297

 
4

 
2

 
(1
)
 

Total
$
922

 
$
876

 
$
12

 
$
18

 
$
(4
)
 
$
1

(1)
Included within Other current assets ($7 million at March 31, 2020 and $7 million at December 31, 2019) or Other non-current assets ($5 million at March 31, 2020 and $11 million at December 31, 2019).
(2)
Included within Other current liabilities ($3 million at March 31, 2020 and $1 million at December 31, 2019) or Other non-current liabilities ($1 million at March 31, 2020 and $0 million at December 31, 2019).
(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 Condensed Consolidated Financial Statements are as follows (in millions):
 
Three Months Ended March 31,
 
2020
 
2019
(Loss) Gain recognized in Accumulated other comprehensive loss
$
(11
)
 
$
4


The amounts of derivative gains (losses) reclassified from Accumulated other comprehensive loss in the Condensed Consolidated Statements of Income are as follows (in millions):
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Total revenue
 
$
(4
)
 
$
(4
)
Interest expense
 
(1
)
 
(1
)
Total
 
$
(5
)
 
$
(5
)

v3.20.1
Fair Value Measurements and Financial Instruments (Tables)
3 Months Ended
Mar. 31, 2020
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 March 31, 2020 and December 31, 2019 (in millions):
 
 
 
Fair Value Measurements Using
 
Balance at March 31, 2020
 
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)
$
2,252

 
$
2,252

 
$

 
$

Other investments
 

 
 

 
 

 
 

Government bonds
$
1

 
$

 
$
1

 
$

Equity investments
$
1

 
$

 
$
1

 
$

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
13

 
$

 
$
13

 
$

Liabilities
 

 
 

 
 

 
 

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
5

 
$

 
$
5

 
$


 
 
 
Fair Value Measurements Using
 
Balance at December 31, 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)
$
2,007

 
$
2,007

 
$

 
$

Other investments
 

 
 

 
 

 
 

Government bonds
$
1

 
$

 
$
1

 
$

Equity investments
$
1

 
$

 
$
1

 
$

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
21

 
$

 
$
21

 
$

Liabilities
 

 
 

 
0

 
 

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
4

 
$

 
$
4

 
$

(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 14 “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):
 
March 31, 2020
 
December 31, 2019
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Current portion of long-term debt
$
999

 
$
1,004

 
$
600

 
$
614

Long-term debt
$
6,227

 
$
6,837

 
$
6,627

 
$
7,442


v3.20.1
Guarantee of Registered Securities (Tables)
3 Months Ended
Mar. 31, 2020
Guarantee of Registered Securities [Abstract]  
Condensed Consolidating Statements of Income
Condensed Consolidating Statement of Income
 
 
Three Months Ended March 31, 2020
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$

 
$

 
$
3,219

 
$

 
$
3,219

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 

 
12

 

 
(12
)
 
1,522

 

 
1,522

Information technology
 

 

 

 

 
111

 

 
111

Premises
 

 

 

 
5

 
68

 

 
73

Depreciation of fixed assets
 

 

 

 

 
41

 

 
41

Amortization and impairment of intangible assets
 

 

 

 

 
97

 

 
97

Other general expense
 

 
26

 

 
1

 
315

 

 
342

Total operating expenses
 

 
38

 

 
(6
)
 
2,154

 

 
2,186

Operating income (loss)
 

 
(38
)
 

 
6

 
1,065

 

 
1,033

Interest income
 

 

 

 
10

 
14

 
(22
)
 
2

Interest expense
 

 
(54
)
 
(11
)
 
(39
)
 
(1
)
 
22

 
(83
)
Intercompany interest income (expense)
 

 
8

 

 
(113
)
 
105

 

 

Intercompany other income (expense)
 

 
81

 

 
(128
)
 
47

 

 

Other income (expense)
 

 

 

 
(42
)
 
72

 
(1
)
 
29

Income (loss) from continuing operations before income taxes
 

 
(3
)
 
(11
)
 
(306
)
 
1,302

 
(1
)
 
981

Income tax expense (benefit)
 

 
(17
)
 
(2
)
 
(48
)
 
256

 

 
189

Net income (loss) from continuing operations
 

 
14

 
(9
)
 
(258
)
 
1,046

 
(1
)
 
792

Net income (loss) from discontinued operations
 

 

 

 

 
(1
)
 

 
(1
)
Net income (loss) before equity in earnings of subsidiaries
 

 
14

 
(9
)
 
(258
)
 
1,045

 
(1
)
 
791

Equity in earnings of subsidiaries
 
773

 
759

 
614

 
862

 

 
(3,008
)
 

Net income
 
773

 
773

 
605

 
604

 
1,045

 
(3,009
)
 
791

Less: Net income attributable to noncontrolling interests
 

 

 

 

 
19

 

 
19

Net income attributable to Aon shareholders
 
$
773

 
$
773

 
$
605

 
$
604

 
$
1,026

 
$
(3,009
)
 
$
772

Condensed Consolidating Statement of Income
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$

 
$

 
$
3,143

 
$

 
$
3,143

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 

 
20

 

 
8

 
1,556

 

 
1,584

Information technology
 

 

 

 

 
117

 

 
117

Premises
 

 

 

 
4

 
83

 

 
87

Depreciation of fixed assets
 

 

 

 

 
40

 

 
40

Amortization and impairment of intangible assets
 

 

 

 

 
97

 

 
97

Other general expense
 

 

 

 
1

 
345

 

 
346

Total operating expenses
 

 
20

 

 
13

 
2,238

 

 
2,271

Operating income (loss)
 

 
(20
)
 

 
(13
)
 
905

 

 
872

Interest income
 

 

 

 
9

 
20

 
(27
)
 
2

Interest expense
 

 
(46
)
 
(24
)
 
(28
)
 
(1
)
 
27

 
(72
)
Intercompany interest income (expense)
 

 
4

 

 
(116
)
 
112

 

 

Intercompany other income (expense)
 

 
31

 

 
(94
)
 
63

 

 

Other income (expense)
 

 
5

 

 
(11
)
 
8

 
(2
)
 

Income (loss) from continuing operations before income taxes
 

 
(26
)
 
(24
)
 
(253
)
 
1,107

 
(2
)
 
802

Income tax expense (benefit)
 

 
(5
)
 
(5
)
 
(42
)
 
178

 

 
126

Net income (loss) from continuing operations
 

 
(21
)
 
(19
)
 
(211
)
 
929

 
(2
)
 
676

Net income (loss) from discontinued operations
 

 

 

 

 

 

 

Net income (loss) before equity in earnings of subsidiaries
 

 
(21
)
 
(19
)
 
(211
)
 
929

 
(2
)
 
676

Equity in earnings of subsidiaries
 

 
682

 
619

 
724

 

 
(2,025
)
 

Net income
 

 
661

 
600

 
513

 
929

 
(2,027
)
 
676

Less: Net income attributable to noncontrolling interests
 

 

 

 

 
17

 

 
17

Net income attributable to Aon shareholders
 
$

 
$
661

 
$
600

 
$
513

 
$
912

 
$
(2,027
)
 
$
659





Condensed Consolidating Statements of Comprehensive Income
Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended March 31, 2020
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
773

 
$
773

 
$
605

 
$
604

 
$
1,045

 
$
(3,009
)
 
$
791

Less: Net income attributable to noncontrolling interests
 

 

 

 

 
19

 

 
19

Net income attributable to Aon shareholders
 
773

 
773

 
605

 
604

 
1,026

 
(3,009
)
 
772

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

 

 

 
(2
)
 
(3
)
 

 
(5
)
Foreign currency translation adjustments
 

 

 

 

 
(398
)
 
1

 
(397
)
Postretirement benefit obligation
 

 

 

 
13

 
11

 

 
24

Total other comprehensive income (loss)
 

 

 

 
11

 
(390
)
 
1

 
(378
)
Equity in other comprehensive income (loss) of subsidiaries, net of tax
 
(377
)
 
(377
)
 
(370
)
 
(381
)
 

 
1,505

 

Less: Other comprehensive loss attributable to noncontrolling interests
 

 

 

 

 
(2
)
 

 
(2
)
Total other comprehensive income (loss) attributable to Aon shareholders
 
(377
)
 
(377
)
 
(370
)
 
(370
)
 
(388
)
 
1,506

 
(376
)
Comprehensive income attributable to Aon shareholders
 
$
396

 
$
396

 
$
235

 
$
234

 
$
638

 
$
(1,503
)
 
$
396

Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$

 
$
661

 
$
600

 
$
513

 
$
929

 
$
(2,027
)
 
$
676

Less: Net income attributable to noncontrolling interests
 

 

 

 

 
17

 

 
17

Net income attributable to Aon shareholders
 

 
661

 
600

 
513

 
912

 
(2,027
)
 
659

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

 

 

 
2

 
5

 

 
7

Foreign currency translation adjustments
 

 

 

 

 
131

 
2

 
133

Postretirement benefit obligation
 

 

 

 
22

 
9

 

 
31

Total other comprehensive income (loss)
 

 

 

 
24

 
145

 
2

 
171

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

 
167

 
139

 
115

 

 
(421
)
 

Less: Other comprehensive loss attributable to noncontrolling interests
 

 

 

 

 
2

 

 
2

Total other comprehensive income (loss) attributable to Aon shareholders
 

 
167

 
139

 
139

 
143

 
(419
)
 
169

Comprehensive income attributable to Aon shareholders
 
$

 
$
828

 
$
739

 
$
652

 
$
1,055

 
$
(2,446
)
 
$
828



Condensed Consolidating Statements of Financial Position
Condensed Consolidating Statement of Financial Position
 
 
As of March 31, 2020
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Assets
 
 
 
 

 
 
 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$

 
$
36

 
$
194

 
$
1,698

 
$
(1,238
)
 
$
690

Short-term investments
 

 

 

 
57

 
113

 

 
170

Receivables, net
 

 

 

 

 
3,554

 

 
3,554

Fiduciary assets
 

 

 

 

 
12,401

 

 
12,401

Current intercompany receivables
 

 
208

 
90

 
2,710

 
14,875

 
(17,883
)
 

Other current assets
 

 

 

 
4

 
526

 

 
530

Total current assets
 

 
208

 
126

 
2,965

 
33,167

 
(19,121
)
 
17,345

Goodwill
 

 

 

 

 
8,293

 

 
8,293

Intangible assets, net
 

 

 

 

 
746

 

 
746

Fixed assets, net
 

 

 

 

 
666

 

 
666

Operating lease right-of-use assets
 

 

 

 
103

 
794

 

 
897

Deferred tax assets
 

 
89

 
4

 
589

 
150

 
(194
)
 
638

Prepaid pension
 

 

 

 
7

 
1,157

 

 
1,164

Non-current intercompany receivables
 

 
397

 

 
261

 
7,044

 
(7,702
)
 

Other non-current assets
 

 

 

 
25

 
508

 

 
533

Investment in subsidiary
 
3,169

 
8,650

 
8,871

 
19,973

 

 
(40,663
)
 

Total assets
 
$
3,169

 
$
9,344

 
$
9,001

 
$
23,923

 
$
52,525

 
$
(67,680
)
 
$
30,282

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 
 
 

 
 
 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$

 
$
1,345

 
$

 
$
49

 
$
1,393

 
$
(1,238
)
 
$
1,549

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

 
696

 

 
1,136

 
52

 

 
1,884

Fiduciary liabilities
 

 

 

 

 
12,401

 

 
12,401

Current intercompany payables
 

 
310

 
61

 
16,321

 
1,191

 
(17,883
)
 

Other current liabilities
 

 

 

 
82

 
1,195

 

 
1,277

Total current liabilities
 

 
2,351

 
61

 
17,588

 
16,232

 
(19,121
)
 
17,111

Long-term debt
 

 
3,822

 

 
2,405

 

 

 
6,227

Non-current operating lease liabilities
 

 

 

 
136

 
774

 

 
910

Deferred tax liabilities
 

 

 

 

 
383

 
(194
)
 
189

Pension, other postretirement, and postemployment liabilities
 

 

 

 
1,287

 
368

 

 
1,655

Non-current intercompany payables
 

 

 

 
7,210

 
492

 
(7,702
)
 

Other non-current liabilities
 

 
2

 

 
115

 
813

 

 
930

Total liabilities
 

 
6,175

 
61

 
28,741

 
19,062

 
(27,017
)
 
27,022

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
3,169

 
3,169

 
8,940

 
(4,818
)
 
33,372

 
(40,663
)
 
3,169

Noncontrolling interests
 

 

 

 

 
91

 

 
91

Total equity
 
3,169

 
3,169

 
8,940

 
(4,818
)
 
33,463

 
(40,663
)
 
3,260

Total liabilities and equity
 
$
3,169

 
$
9,344

 
$
9,001

 
$
23,923

 
$
52,525

 
$
(67,680
)
 
$
30,282

Condensed Consolidating Statement of Financial Position
 
 
As of December 31, 2019
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Assets
 
 
 
 

 
 
 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$

 
$

 
$
2,271

 
$
2,619

 
$
(4,100
)
 
$
790

Short-term investments
 

 

 

 
28

 
110

 

 
138

Receivables, net
 

 

 

 

 
3,112

 

 
3,112

Fiduciary assets
 

 

 

 

 
11,834

 

 
11,834

Current intercompany receivables
 

 
246

 
89

 
1,214

 
12,710

 
(14,259
)
 

Other current assets
 

 

 

 
7

 
595

 

 
602

Total current assets
 

 
246

 
89

 
3,520

 
30,980

 
(18,359
)
 
16,476

Goodwill
 

 

 

 

 
8,165

 

 
8,165

Intangible assets, net
 

 

 

 

 
783

 

 
783

Fixed assets, net
 

 

 

 

 
621

 

 
621

Operating lease right-of-use assets
 

 

 

 
110

 
819

 

 
929

Deferred tax assets
 

 
89

 
4

 
577

 
165

 
(190
)
 
645

Prepaid pension
 

 

 

 
7

 
1,209

 

 
1,216

Non-current intercompany receivables
 

 
868

 

 
261

 
7,046

 
(8,175
)
 

Other non-current assets
 

 

 

 
32

 
538

 

 
570

Investment in subsidiary
 
3,375

 
8,899

 
12,211

 
19,470

 

 
(43,955
)
 

Total assets
 
$
3,375

 
$
10,102

 
$
12,304

 
$
23,977

 
$
50,326

 
$
(70,679
)
 
$
29,405

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 
 
 

 
 
 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$

 
$
2,157

 
$
1,994

 
$
56

 
$
1,832

 
$
(4,100
)
 
$
1,939

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

 
112

 

 
600

 

 

 
712

Fiduciary liabilities
 

 

 

 

 
11,834

 

 
11,834

Current intercompany payables
 

 
234

 
61

 
12,978

 
986

 
(14,259
)
 

Other current liabilities
 

 

 

 
80

 
1,006

 

 
1,086

Total current liabilities
 

 
2,503

 
2,055

 
13,714

 
15,658

 
(18,359
)
 
15,571

Long-term debt
 

 
4,223

 

 
2,404

 

 

 
6,627

Non-current operating lease liabilities
 

 

 

 
143

 
801

 

 
944

Deferred tax liabilities
 

 

 

 

 
389

 
(190
)
 
199

Pension, other postretirement, and postemployment liabilities
 

 

 

 
1,348

 
390

 

 
1,738

Non-current intercompany payables
 

 

 

 
7,212

 
963

 
(8,175
)
 

Other non-current liabilities
 

 
1

 

 
113

 
763

 

 
877

Total liabilities
 

 
6,727

 
2,055

 
24,934

 
18,964

 
(26,724
)
 
25,956

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
3,375

 
3,375

 
10,249

 
(957
)
 
31,288

 
(43,955
)
 
3,375

Noncontrolling interests
 

 

 

 

 
74

 

 
74

Total equity
 
3,375

 
3,375

 
10,249

 
(957
)
 
31,362

 
(43,955
)
 
3,449

Total liabilities and equity
 
$
3,375

 
$
10,102

 
$
12,304

 
$
23,977

 
$
50,326

 
$
(70,679
)
 
$
29,405


Condensed Consolidating Statements of Cash Flows
Condensed Consolidating Statement of Cash Flows
 
 
Three Months Ended March 31, 2020
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$

 
$
1,561

 
$
3,648

 
$
(512
)
 
$
852

 
$
(5,211
)
 
$
338

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 

 

 
2

 
4

 

 
6

Payments for investments
 

 
(450
)
 
(518
)
 
(30
)
 
(13
)
 
968

 
(43
)
Net sales (purchases) of short-term investments - non-fiduciary
 

 

 

 
(28
)
 
(10
)
 

 
(38
)
Acquisition of businesses, net of cash acquired
 

 

 

 

 
(334
)
 

 
(334
)
Sale of businesses, net of cash sold
 

 

 

 

 
30

 

 
30

Capital expenditures
 

 

 

 

 
(59
)
 

 
(59
)
Cash provided by (used for) investing activities
 

 
(450
)
 
(518
)
 
(56
)
 
(382
)
 
968

 
(438
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share repurchase
 

 
(463
)
 

 

 

 

 
(463
)
Advances from (to) affiliates
 

 
(618
)
 
(3,094
)
 
(2,044
)
 
(1,349
)
 
7,105

 

Issuance of shares for employee benefit plans
 

 
(112
)
 

 

 

 

 
(112
)
Issuance of debt
 

 
457

 

 
1,603

 

 
 
 
2,060

Repayment of debt
 

 
(273
)
 

 
(1,068
)
 

 

 
(1,341
)
Cash dividends to shareholders
 

 
(102
)
 

 

 

 

 
(102
)
Noncontrolling interests and other financing activities
 

 

 

 

 
40

 

 
40

Cash provided by (used for) financing activities
 

 
(1,111
)
 
(3,094
)
 
(1,509
)
 
(1,309
)
 
7,105

 
82

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 

 

 

 

 
(82
)
 

 
(82
)
Net increase (decrease) in cash and cash equivalents
 

 

 
36

 
(2,077
)
 
(921
)
 
2,862

 
(100
)
Cash and cash equivalents at beginning of period
 

 

 

 
2,271

 
2,619

 
(4,100
)
 
790

Cash and cash equivalents at end of period
 
$

 
$

 
$
36

 
$
194

 
$
1,698

 
$
(1,238
)
 
$
690


Condensed Consolidating Statement of Cash Flows
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$

 
$
(11
)
 
$
529

 
$
(34
)
 
$
143

 
$
(553
)
 
$
74

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 

 
72

 
8

 
4

 
(72
)
 
12

Payments for investments
 

 

 

 
(9
)
 
(77
)
 
72

 
(14
)
Net sales (purchases) of short-term investments - non-fiduciary
 

 

 

 
9

 
32

 

 
41

Acquisition of businesses, net of cash acquired
 

 

 

 

 
(15
)
 

 
(15
)
Sale of businesses, net of cash sold
 

 

 

 

 
6

 

 
6

Capital expenditures
 
 
 
 
 
 
 

 
(57
)
 

 
(57
)
Cash provided by (used for) investing activities
 

 

 
72

 
8

 
(107
)
 

 
(27
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share repurchase
 

 
(100
)
 

 

 

 

 
(100
)
Advances from (to) affiliates
 

 
305

 
(601
)
 
(265
)
 
(550
)
 
1,111

 

Issuance of shares for employee benefit plans
 

 
(98
)
 

 

 

 

 
(98
)
Issuance of debt
 

 
384

 

 
485

 
2

 

 
871

Repayment of debt
 

 
(384
)
 

 
(310
)
 

 

 
(694
)
Cash dividends to shareholders
 

 
(96
)
 

 

 

 

 
(96
)
Noncontrolling interests and other financing activities
 

 

 

 

 
(23
)
 

 
(23
)
Cash provided by (used for) financing activities
 

 
11

 
(601
)
 
(90
)
 
(571
)
 
1,111

 
(140
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 

 

 

 

 
37

 

 
37

Net increase (decrease) in cash and cash equivalents
 

 

 

 
(116
)
 
(498
)
 
558

 
(56
)
Cash and cash equivalents at beginning of period
 

 

 

 
862

 
3,473

 
(3,679
)
 
656

Cash and cash equivalents at end of period
 
$

 
$

 
$

 
$
746

 
$
2,975

 
$
(3,121
)
 
$
600


v3.20.1
Accounting Principles and Practices (Details)
$ in Millions
Jan. 01, 2020
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Cumulative adjustment to decrease retained earnings $ 6
Accounting Standards Update 2016-13  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Cumulative adjustment to decrease retained earnings $ 6
v3.20.1
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Disaggregation of Revenue [Line Items]    
Total revenue $ 3,219 $ 3,143
United States    
Disaggregation of Revenue [Line Items]    
Total revenue 1,227 1,161
Americas other than United States    
Disaggregation of Revenue [Line Items]    
Total revenue 228 226
United Kingdom    
Disaggregation of Revenue [Line Items]    
Total revenue 500 452
Europe, Middle East, & Africa other than United Kingdom    
Disaggregation of Revenue [Line Items]    
Total revenue 978 1,009
Asia Pacific    
Disaggregation of Revenue [Line Items]    
Total revenue 286 295
Operating Segments | Commercial Risk Solutions    
Disaggregation of Revenue [Line Items]    
Total revenue 1,146 1,118
Operating Segments | Reinsurance Solutions    
Disaggregation of Revenue [Line Items]    
Total revenue 848 788
Operating Segments | Retirement Solutions    
Disaggregation of Revenue [Line Items]    
Total revenue 397 420
Operating Segments | Health Solutions    
Disaggregation of Revenue [Line Items]    
Total revenue 502 486
Operating Segments | Data & Analytic Services    
Disaggregation of Revenue [Line Items]    
Total revenue 331 336
Elimination    
Disaggregation of Revenue [Line Items]    
Total revenue $ (5) $ (5)
v3.20.1
Revenue from Contracts with Customers - Contract Assets Rollforward (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Capitalized Cost To Fulfill Customer Contracts    
Change in Capitalized Contract Costs    
Balance at beginning of period $ 335 $ 329
Additions 318 346
Amortization (416) (439)
Impairment 0 0
Foreign currency translation and other (8) 0
Balance at end of period 229 236
Capitalized Cost To Obtain Customer Contracts    
Change in Capitalized Contract Costs    
Balance at beginning of period 171 156
Additions 12 9
Amortization (12) (11)
Impairment 0 0
Foreign currency translation and other (4) 1
Balance at end of period $ 167 $ 155
v3.20.1
Cash and Cash Equivalents and Short-term Investments (Details)
£ in Millions, $ in Millions
3 Months Ended
Mar. 31, 2020
USD ($)
Mar. 31, 2020
GBP (£)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Cash, Cash Equivalents, and Short-term Investments [Abstract]        
Cash and cash equivalents and short-term investments     $ 860.0 $ 928.0
Cash and cash equivalents and short term investments, period increase (decrease) $ (68.0)      
Restricted cash and investments     95.0 110.0
Operating funds in U.K.   £ 42.7 $ 52.1 $ 55.5
v3.20.1
Other Financial Data - Schedule of Other Income (Expense) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Other (Expense) Income    
Foreign currency remeasurement $ 42 $ (11)
Disposal of businesses 25 5
Pension and other postretirement 4 4
Equity earnings 1 1
Financial instruments (44) 1
Other 1 0
Total $ 29 $ 0
v3.20.1
Other Financial Data - Schedule of Allowance for Doubtful Accounts (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Balance at beginning of period $ 70 $ 64
Provision 9 8
Accounts written off, net of recoveries (8) (8)
Foreign currency translation and other 3 0
Balance at end of period 81 $ 64
Cumulative Effect, Period Of Adoption, Adjustment    
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Balance at beginning of period 7  
Cumulative Effect, Period Of Adoption, Adjustment | Accounting Standards Update 2016-13    
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Balance at beginning of period 7  
Cumulative Effect, Period Of Adoption, Adjusted Balance    
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Balance at beginning of period $ 77  
v3.20.1
Other Financial Data - Schedule of Other Current Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Other Financial Data [Abstract]    
Cost to fulfill contracts with customers $ 229 $ 335
Prepaid expenses 156 97
Taxes receivable 79 88
Other 66 82
Total $ 530 602
Receivables from divested business   $ 4
v3.20.1
Other Financial Data - Schedule of Other Non-current Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Other Financial Data [Abstract]    
Cost to obtain contracts with customers $ 167 $ 171
Taxes receivable 101 102
Leases 93 100
Investments 52 53
Other 120 144
Total $ 533 $ 570
v3.20.1
Other Financial Data - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Other Financial Data [Abstract]    
Deferred revenue $ 309 $ 270
Leases 200 210
Taxes payable 196 93
Other 572 513
Total 1,277 1,086
Revenue recognized from deferred revenue $ 117 $ 532
v3.20.1
Other Financial Data - Schedule of Other Non-current Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Other Financial Data [Abstract]    
Taxes payable $ 544 $ 525
Leases 74 76
Deferred revenue 72 62
Compensation and benefits 41 49
Other 199 165
Total 930 877
Noncurrent portion of transition tax $ 145 $ 145
v3.20.1
Restructuring (Details) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Restructuring and Related Activities [Abstract]      
Restructuring charges $ 0 $ 91,000,000  
Restructuring liabilities 127,000,000   $ 204,000,000
Cash payments 60,000,000    
Foreign currency translation and other non-cash activity $ 17,000,000    
v3.20.1
Acquisitions and Dispositions of Businesses - Acquisitions (Details)
$ in Millions
3 Months Ended
Mar. 31, 2020
USD ($)
acquisition
Mar. 31, 2019
acquisition
Jan. 31, 2020
Jan. 03, 2020
Jan. 01, 2020
Dec. 31, 2019
USD ($)
Jul. 31, 2019
Jan. 01, 2019
Business Acquisition [Line Items]                
Number of business acquired under business combination | acquisition 5 1            
Assets acquired                
Goodwill $ 8,293         $ 8,165    
2019 and 2020 acquisitions                
Business Combination, Consideration Transferred [Abstract]                
Cash 351              
Deferred, contingent, and other consideration 35              
Aggregate consideration transferred 386              
Assets acquired                
Cash and cash equivalents 17              
Receivables 7              
Goodwill 303              
Intangible assets 74              
Current assets 2              
Non-current assets 5              
Total assets acquired 408              
Liabilities assumed                
Current liabilities 11              
Other non-current liabilities 11              
Total liabilities assumed 22              
Net assets acquired $ 386              
Apollo Conseil et Courtage                
Liabilities assumed                
Percentage of capital acquired         100.00%      
Assimedia SA                
Liabilities assumed                
Percentage of capital acquired         100.00%      
TRIUM GmbH Insurance Broker                
Liabilities assumed                
Percentage of capital acquired         100.00%      
CoverWallet, Inc.                
Liabilities assumed                
Percentage of capital acquired       100.00%        
Cytelligence Inc.                
Liabilities assumed                
Percentage of capital acquired     100.00%          
Ovatio Courtage SAS                
Liabilities assumed                
Percentage of capital acquired             100.00%  
Zalba-Caldu Correduria de Seguros, S.A.                
Liabilities assumed                
Percentage of capital acquired             100.00%  
Chapka Assurances SAS                
Liabilities assumed                
Percentage of capital acquired               100.00%
v3.20.1
Acquisitions and Dispositions of Businesses - Dispositions (Details)
$ in Millions
3 Months Ended
Mar. 31, 2020
USD ($)
disposal
Mar. 31, 2019
USD ($)
disposal
Dispositions    
Pretax gains (losses) recognized on disposal of businesses | $ $ 25 $ 5
Disposal Group, Not Discontinued Operations    
Dispositions    
Number of dispositions | disposal 1 1
v3.20.1
Goodwill and Other Intangible Assets - Schedule of Goodwill Rollforward (Details)
$ in Millions
3 Months Ended
Mar. 31, 2020
USD ($)
Changes in the net carrying amount of goodwill by operating segment  
Beginning balance $ 8,165
Goodwill related to current year acquisitions 303
Goodwill related to disposals (3)
Goodwill related to prior year acquisitions 0
Foreign currency translation (172)
Ending balance $ 8,293
v3.20.1
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Intangible assets with finite lives    
Gross Carrying Amount $ 3,661 $ 3,673
Accumulated Amortization and Impairment 2,915 2,890
Net Carrying Amount 746 783
Estimated amortization for intangible assets    
Remainder of 2020 139  
2021 136  
2022 96  
2023 85  
2024 69  
2025 51  
Thereafter 170  
Total 746  
Customer-related and contract-based    
Intangible assets with finite lives    
Gross Carrying Amount 2,227 2,264
Accumulated Amortization and Impairment 1,590 1,600
Net Carrying Amount 637 664
Tradenames    
Intangible assets with finite lives    
Gross Carrying Amount 1,026 1,029
Accumulated Amortization and Impairment 1,005 956
Net Carrying Amount 21 73
Technology and other    
Intangible assets with finite lives    
Gross Carrying Amount 408 380
Accumulated Amortization and Impairment 320 334
Net Carrying Amount $ 88 $ 46
v3.20.1
Debt - Narrative (Details)
Mar. 31, 2020
EUR (€)
credit_facility
Mar. 31, 2020
USD ($)
credit_facility
Feb. 27, 2020
USD ($)
Feb. 26, 2020
USD ($)
May 02, 2019
USD ($)
Debt Instrument [Line Items]          
Number of credit facilities | credit_facility 2 2      
Borrowings under credit facilities   $ 0      
Line of Credit          
Debt Instrument [Line Items]          
Line of credit facility, available credit   1,650,000,000      
2.80% Senior Notes Due March 2021 | Senior Notes          
Debt Instrument [Line Items]          
Debt face value   $ 400,000,000      
Debt interest rate percentage (as a percent) 2.80% 2.80%      
2.20% Senior Notes Due November 2022 | Senior Notes          
Debt Instrument [Line Items]          
Debt face value         $ 500,000,000
Debt interest rate percentage (as a percent)         2.20%
5.00% Senior Notes Due September 2020          
Debt Instrument [Line Items]          
Debt interest rate percentage (as a percent) 5.00% 5.00%      
5.00% Senior Notes Due September 2020 | Senior Notes          
Debt Instrument [Line Items]          
Debt face value   $ 600,000,000      
Debt interest rate percentage (as a percent) 5.00% 5.00%      
3.75% Senior Notes Due May 2, 2029          
Debt Instrument [Line Items]          
Debt interest rate percentage (as a percent) 3.75% 3.75%      
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%
Credit Facility Expiring February 2022 | Line of Credit          
Debt Instrument [Line Items]          
Line of credit facility, maximum borrowing capacity   $ 900,000,000      
Credit Facility Expiring October 2023 | Line of Credit          
Debt Instrument [Line Items]          
Line of credit facility, maximum borrowing capacity   750,000,000 $ 750,000,000 $ 400,000,000  
Line of credit facility, increase of maximum borrowing capacity     $ 350,000,000    
Commercial paper          
Debt Instrument [Line Items]          
Line of credit facility, maximum borrowing capacity   1,650,000,000      
Commercial paper | U.S. Program          
Debt Instrument [Line Items]          
Line of credit facility, maximum borrowing capacity   $ 600,000,000      
Commercial paper | European Program          
Debt Instrument [Line Items]          
Line of credit facility, maximum borrowing capacity | € € 525,000,000        
v3.20.1
Debt - Schedule of Commercial Paper (Details) - Commercial paper - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Debt Instrument [Line Items]      
Commercial paper outstanding $ 833   $ 112
Weighted average commercial paper outstanding $ 456 $ 323  
Weighted average interest rate of commercial paper outstanding 0.96% 0.49%  
v3.20.1
Income Taxes (Details)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Income Tax Disclosure [Abstract]    
Effective income tax rate 19.30% 15.70%
v3.20.1
Shareholders' Equity - Additional Information (Details) - USD ($)
3 Months Ended 96 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Feb. 28, 2017
Nov. 30, 2014
Apr. 30, 2012
Equity, Class of Treasury Stock [Line Items]            
Total cost of shares purchased $ 463,000,000 $ 101,000,000        
Number of shares excluded from the calculation of diluted earnings per share (in shares) 0 100,000        
2012 - Share Repurchase Program            
Equity, Class of Treasury Stock [Line Items]            
Share repurchase authorization limit (up to) $ 15,000,000,000.0   $ 15,000,000,000.0 $ 5,000,000,000.0 $ 5,000,000,000.0 $ 5,000,000,000.0
Share repurchase, remaining authorization limit (in shares) $ 1,600,000,000   $ 1,600,000,000      
Shares purchased (in shares) 2,200,000 600,000 130,900,000      
Total cost of shares purchased $ 461,000,000 $ 100,000,000 $ 13,400,000,000      
v3.20.1
Shareholders' Equity - Schedule of Stock Repurchases (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 96 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Equity, Class of Treasury Stock [Line Items]      
Total repurchase cost $ 463 $ 101  
2012 - Share Repurchase Program      
Equity, Class of Treasury Stock [Line Items]      
Shares purchased (in shares) 2.2 0.6 130.9
Average price per share of stock repurchased (in dollars per share) $ 212.78 $ 161.16  
Total repurchase cost $ 461 $ 100 $ 13,400
Additional associated costs 2 1  
Total costs recorded to retained earnings $ 463 $ 101  
v3.20.1
Shareholders' Equity - Weighted Average Ordinary Shares Outstanding (Details) - shares
shares in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Weighted average shares outstanding    
Basic weighted average ordinary shares outstanding (in shares) 233.2 242.2
Dilutive effect of potentially issuable shares (in shares) 1.3 1.5
Diluted weighted average ordinary shares outstanding (in shares) 234.5 243.7
v3.20.1
Shareholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance $ 3,449 $ 4,219
Other comprehensive income (loss) before reclassifications, net (403) 146
Amounts reclassified from accumulated other comprehensive income    
Amounts reclassified from accumulated other comprehensive income 35 31
Tax expense (8) (8)
Amounts reclassified from accumulated other comprehensive income, net (3) 27 23
Total other comprehensive income (loss) attributable to Aon shareholders (376) 169
Ending Balance 3,260 4,862
Total    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (4,033) (3,909)
Amounts reclassified from accumulated other comprehensive income    
Ending Balance (4,409) (3,740)
Change in Fair Value of Financial Instruments    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (12) (15)
Other comprehensive income (loss) before reclassifications, net (9) 4
Amounts reclassified from accumulated other comprehensive income    
Amounts reclassified from accumulated other comprehensive income 5 5
Tax expense (1) (2)
Amounts reclassified from accumulated other comprehensive income, net (3) 4 3
Total other comprehensive income (loss) attributable to Aon shareholders (5) 7
Ending Balance (17) (8)
Foreign Currency Translation Adjustments    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (1,305) (1,319)
Other comprehensive income (loss) before reclassifications, net (395) 131
Amounts reclassified from accumulated other comprehensive income    
Amounts reclassified from accumulated other comprehensive income 0 0
Tax expense 0 0
Amounts reclassified from accumulated other comprehensive income, net (3) 0 0
Total other comprehensive income (loss) attributable to Aon shareholders (395) 131
Ending Balance (1,700) (1,188)
Postretirement Benefit Obligation    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (2,716) (2,575)
Other comprehensive income (loss) before reclassifications, net 1 11
Amounts reclassified from accumulated other comprehensive income    
Amounts reclassified from accumulated other comprehensive income 30 26
Tax expense (7) (6)
Amounts reclassified from accumulated other comprehensive income, net (3) 23 20
Total other comprehensive income (loss) attributable to Aon shareholders 24 31
Ending Balance $ (2,692) $ (2,544)
v3.20.1
Employee Benefits - Components of Net Periodic (Benefit) Cost (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
U.S.    
Defined Benefit Plan Disclosure [Line Items]    
Service cost $ 0 $ 0
Interest cost 21 27
Expected return on plan assets, net of administration expenses (33) (34)
Amortization of prior-service cost 0 1
Amortization of net actuarial loss 17 13
Total net periodic (benefit) cost 5 7
U.K.    
Defined Benefit Plan Disclosure [Line Items]    
Service cost 0 0
Interest cost 22 28
Expected return on plan assets, net of administration expenses (39) (49)
Amortization of prior-service cost 0 1
Amortization of net actuarial loss 7 7
Total net periodic (benefit) cost (10) (13)
Other    
Defined Benefit Plan Disclosure [Line Items]    
Service cost 0 0
Interest cost 4 7
Expected return on plan assets, net of administration expenses (8) (10)
Amortization of prior-service cost 0 0
Amortization of net actuarial loss 3 3
Total net periodic (benefit) cost $ (1) $ 0
v3.20.1
Employee Benefits - Additional Information (Details)
$ in Millions
Dec. 31, 2019
USD ($)
UNITED STATES  
Defined Benefit Plan Disclosure [Line Items]  
Estimate of contributions to defined benefit pension plans for the current fiscal year $ 99
U.K.  
Defined Benefit Plan Disclosure [Line Items]  
Estimate of contributions to defined benefit pension plans for the current fiscal year 5
Other  
Defined Benefit Plan Disclosure [Line Items]  
Estimate of contributions to defined benefit pension plans for the current fiscal year $ 19
v3.20.1
Employee Benefits - Summary of Employer Contributions (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Defined Benefit Plan Disclosure [Line Items]    
Company’s benefit pension plans $ 35 $ 47
U.S.    
Defined Benefit Plan Disclosure [Line Items]    
Company’s benefit pension plans 31 17
U.K.    
Defined Benefit Plan Disclosure [Line Items]    
Company’s benefit pension plans 2 23
Other    
Defined Benefit Plan Disclosure [Line Items]    
Company’s benefit pension plans $ 2 $ 7
v3.20.1
Share-Based Compensation Plans - Share-based compensation expenses recognized (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total share-based compensation expense $ 76 $ 89
Restricted share units (“RSUs”)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total share-based compensation expense 58 63
Performance share awards (“PSAs”)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total share-based compensation expense 14 23
Employee share purchase plans    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total share-based compensation expense $ 4 $ 3
v3.20.1
Share-Based Compensation Plans - Restricted share unit activity (Details) - Restricted share units (“RSUs”) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Non-vested share awards (in shares)      
Non-vested at beginning of period (in shares) 3,634 4,208 4,208
Granted (in shares) 432 517  
Vested (in shares) (583) (677)  
Forfeited (in shares) (79) (41)  
Non-vested at end of period (in shares) 3,403 4,007 3,634
Weighted Average Fair value      
Non-vested at beginning of period (in dollars per share) $ 143 $ 120 $ 120
Granted (in dollars per share) 179 170  
Vested (in dollars per share) 141 117  
Forfeited (in dollars per share) 146 121  
Non-vested at end of period (in dollars per share) $ 147 $ 127 $ 143
Unamortized deferred compensation expense $ 359    
Remaining weighted-average amortization period (in years) 2 years    
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    
v3.20.1
Share-Based Compensation Plans - Performance Share Awards Narrative (Details) - Performance Shares
3 Months Ended
Mar. 31, 2020
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%
v3.20.1
Share-Based Compensation Plans - Schedule of Performance-based plans (Details) - Performance Shares - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Target PSAs granted during period (in shares) 487 467 564
Weighted average fair value per share at date of grant (in dollars per share) $ 160 $ 165 $ 134
Number of shares that would be issued based on current performance levels (in shares) 487 451 818
Unamortized expense, based on current performance levels $ 78 $ 42 $ 24
v3.20.1
Derivatives and Hedging - Foreign Exchange Risk Management Narrative (Details) - Foreign exchange contracts
3 Months Ended
Mar. 31, 2020
Derivative [Line Items]  
Term of derivative contract 30 days
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
v3.20.1
Derivatives and Hedging - Notional and Fair Values of Derivative Instruments (Details) - Foreign exchange contracts - USD ($)
3 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Derivatives, Fair Value    
Notional Amount $ 922,000,000 $ 876,000,000
Derivative Assets 12,000,000 18,000,000
Derivative Liabilities $ (4,000,000) 1,000,000
Term of derivative contract 30 days  
Other Current Assets    
Derivatives, Fair Value    
Derivative Assets $ 7,000,000 7,000,000
Other non-current assets    
Derivatives, Fair Value    
Derivative Assets 5,000,000 11,000,000
Other current liabilities    
Derivatives, Fair Value    
Derivative Liabilities 3,000,000 1,000,000
Other non-current liabilities    
Derivatives, Fair Value    
Derivative Liabilities 1,000,000 0
Derivatives accounted for as hedges    
Derivatives, Fair Value    
Notional Amount 537,000,000 579,000,000
Derivative Assets 8,000,000 16,000,000
Derivative Liabilities (3,000,000) 1,000,000
Not Designated as Hedging Instrument    
Derivatives, Fair Value    
Notional Amount 385,000,000 297,000,000
Derivative Assets 4,000,000 2,000,000
Derivative Liabilities $ (1,000,000) $ 0
v3.20.1
Derivatives and Hedging - Schedule of Derivative Gains (Losses) Recognized in the Consolidated Financial Statements (Details) - Foreign exchange contracts - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Derivative [Line Items]    
Gain (loss) recognized in Accumulated other comprehensive loss $ (11) $ 4
Derivative gains (losses) reclassified from accumulated other comprehensive loss (5) (5)
Total revenue    
Derivative [Line Items]    
Derivative gains (losses) reclassified from accumulated other comprehensive loss (4) (4)
Interest expense    
Derivative [Line Items]    
Derivative gains (losses) reclassified from accumulated other comprehensive loss $ (1) $ (1)
v3.20.1
Derivatives and Hedging - Interest Rate Management Risk Narrative (Details) - Foreign exchange contracts - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
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    
Derivative [Line Items]    
Derivative gain (loss) $ (35) $ 5
v3.20.1
Derivatives and Hedging - Net Investments in Foreign Operations Risk Management Narrative (Details) - Net Investment Hedging
€ in Millions, $ in Millions
Mar. 31, 2020
EUR (€)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
EUR (€)
Dec. 31, 2019
USD ($)
Derivatives, Fair Value        
European denominated commercial paper € 101 $ 112 € 101 $ 112
Effective portion of loss reclassified from Accumulated OCI   $ 30   $ 29
v3.20.1
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
Mar. 31, 2020
Dec. 31, 2019
Money market funds and highly liquid debt securities    
Assets    
Money market funds and highly liquid debt securities $ 2,252 $ 2,007
Government bonds    
Assets    
Other investments 1 1
Equity investments    
Assets    
Other investments 1 1
Gross foreign exchange contracts    
Assets    
Derivatives 13 21
Liabilities    
Derivatives 5 4
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 2,252 2,007
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 1
Significant Other Observable Inputs (Level 2) | Gross foreign exchange contracts    
Assets    
Derivatives 13 21
Liabilities    
Derivatives 5 4
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
v3.20.1
Fair Value Measurements and Financial Instruments - Schedule of financial instruments where the carrying amounts and fair values differ (Details) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Carrying Value    
Fair value of financial instrument    
Current portion of long-term debt $ 999 $ 600
Long-term debt 6,227 6,627
Fair Value | Fair Value, Inputs, Level 2    
Fair value of financial instrument    
Current portion of long-term debt 1,004 614
Long-term debt $ 6,837 $ 7,442
v3.20.1
Claims, Lawsuits and Other Contingencies - Narrative (Details)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
Sep. 06, 2018
USD ($)
Oct. 03, 2017
NZD ($)
Mar. 31, 2020
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2019
USD ($)
Legal, Guarantees and Indemnifications              
Revenue       $ 3,219,000,000 $ 3,143,000,000    
Maximum potential funding under commitments $ 70,000,000     70,000,000     $ 110,000,000
Letters of credit outstanding 71,000,000     71,000,000     $ 73,000,000
Pending Litigation | Christchurch City Council              
Legal, Guarantees and Indemnifications              
Damages sought 315,000,000   $ 528        
Minimum              
Legal, Guarantees and Indemnifications              
Estimate of possible loss 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      
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              
Maximum potential funding under commitments 66,000,000     66,000,000      
Guarantor obligations, current carrying value 11,000,000     11,000,000      
Loss contingency accrual payments       0      
Discontinued Operations, Disposed of by Sale | Tempo Business | Performance Guarantee              
Legal, Guarantees and Indemnifications              
Maximum potential funding under commitments 139,000,000     139,000,000      
Guarantor obligations, current carrying value $ 1,000,000     1,000,000      
Loss contingency accrual payments       $ 0      
v3.20.1
Segment Information (Details)
3 Months Ended
Mar. 31, 2020
segment
metric
revenue_line
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
v3.20.1
Guarantee of Registered Securities - Narrative (Details)
Mar. 31, 2020
5.00% notes due September 2020  
Condensed Financial Statements, Captions [Line Items]  
Debt interest rate percentage (as a percent) 5.00%
2.20% Notes due November 2020  
Condensed Financial Statements, Captions [Line Items]  
Debt interest rate percentage (as a percent) 2.20%
8.205% Notes due January 2027  
Condensed Financial Statements, Captions [Line Items]  
Debt interest rate percentage (as a percent) 8.205%
4.50% Senior Notes Due December 2028  
Condensed Financial Statements, Captions [Line Items]  
Debt interest rate percentage (as a percent) 4.50%
4.75% Notes due May 2045  
Condensed Financial Statements, Captions [Line Items]  
Debt interest rate percentage (as a percent) 4.75%
3.75% Senior Notes due May 2, 2029  
Condensed Financial Statements, Captions [Line Items]  
Debt interest rate percentage (as a percent) 3.75%
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% Senior Notes due June 2044  
Condensed Financial Statements, Captions [Line Items]  
Debt interest rate percentage (as a percent) 4.60%
2.80% Senior Notes due 2021  
Condensed Financial Statements, Captions [Line Items]  
Debt interest rate percentage (as a percent) 2.80%
3.875% Senior Notes due December 2025  
Condensed Financial Statements, Captions [Line Items]  
Debt interest rate percentage (as a percent) 3.875%
v3.20.1
Guarantee of Registered Securities - Condensed Consolidating Statement of Income (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Revenue    
Total revenue $ 3,219 $ 3,143
Expenses    
Compensation and benefits 1,522 1,584
Information technology 111 117
Premises 73 87
Depreciation of fixed assets 41 40
Amortization and impairment of intangible assets 97 97
Other general expenses 342 346
Total operating expenses 2,186 2,271
Operating income 1,033 872
Interest income 2 2
Interest expense (83) (72)
Intercompany interest income (expense) 0 0
Intercompany other income (expense) 0 0
Other income (expense) 29 0
Income from continuing operations before income taxes 981 802
Income tax expense (benefit) 189 126
Net income from continuing operations 792 676
Net income (loss) from discontinued operations (1) 0
Net income (loss) before equity in earnings of subsidiaries 791 676
Equity in earnings of subsidiaries 0 0
Net income 791 676
Less: Net income attributable to noncontrolling interests 19 17
Net income attributable to Aon shareholders 772 659
Aon Ireland    
Revenue    
Total revenue 0 0
Expenses    
Compensation and benefits 0 0
Information technology 0 0
Premises 0 0
Depreciation of fixed assets 0 0
Amortization and impairment of intangible assets 0 0
Other general expenses 0 0
Total operating expenses 0 0
Operating income 0 0
Interest income 0 0
Interest expense 0 0
Intercompany interest income (expense) 0 0
Intercompany other income (expense) 0 0
Other income (expense) 0 0
Income from continuing operations before income taxes 0 0
Income tax expense (benefit) 0 0
Net income from continuing operations 0 0
Net income (loss) from discontinued operations 0 0
Net income (loss) before equity in earnings of subsidiaries 0 0
Equity in earnings of subsidiaries 773 0
Net income 773 0
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders 773 0
Aon UK    
Revenue    
Total revenue 0 0
Expenses    
Compensation and benefits 12 20
Information technology 0 0
Premises 0 0
Depreciation of fixed assets 0 0
Amortization and impairment of intangible assets 0 0
Other general expenses 26 0
Total operating expenses 38 20
Operating income (38) (20)
Interest income 0 0
Interest expense (54) (46)
Intercompany interest income (expense) 8 4
Intercompany other income (expense) 81 31
Other income (expense) 0 5
Income from continuing operations before income taxes (3) (26)
Income tax expense (benefit) (17) (5)
Net income from continuing operations 14 (21)
Net income (loss) from discontinued operations 0 0
Net income (loss) before equity in earnings of subsidiaries 14 (21)
Equity in earnings of subsidiaries 759 682
Net income 773 661
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders 773 661
Aon Global Holdings Limited    
Revenue    
Total revenue 0 0
Expenses    
Compensation and benefits 0 0
Information technology 0 0
Premises 0 0
Depreciation of fixed assets 0 0
Amortization and impairment of intangible assets 0 0
Other general expenses 0 0
Total operating expenses 0 0
Operating income 0 0
Interest income 0 0
Interest expense (11) (24)
Intercompany interest income (expense) 0 0
Intercompany other income (expense) 0 0
Other income (expense) 0 0
Income from continuing operations before income taxes (11) (24)
Income tax expense (benefit) (2) (5)
Net income from continuing operations (9) (19)
Net income (loss) from discontinued operations 0 0
Net income (loss) before equity in earnings of subsidiaries (9) (19)
Equity in earnings of subsidiaries 614 619
Net income 605 600
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders 605 600
Aon Corporation    
Revenue    
Total revenue 0 0
Expenses    
Compensation and benefits (12) 8
Information technology 0 0
Premises 5 4
Depreciation of fixed assets 0 0
Amortization and impairment of intangible assets 0 0
Other general expenses 1 1
Total operating expenses (6) 13
Operating income 6 (13)
Interest income 10 9
Interest expense (39) (28)
Intercompany interest income (expense) (113) (116)
Intercompany other income (expense) (128) (94)
Other income (expense) (42) (11)
Income from continuing operations before income taxes (306) (253)
Income tax expense (benefit) (48) (42)
Net income from continuing operations (258) (211)
Net income (loss) from discontinued operations 0 0
Net income (loss) before equity in earnings of subsidiaries (258) (211)
Equity in earnings of subsidiaries 862 724
Net income 604 513
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders 604 513
Other Non-Guarantor Subsidiaries    
Revenue    
Total revenue 3,219 3,143
Expenses    
Compensation and benefits 1,522 1,556
Information technology 111 117
Premises 68 83
Depreciation of fixed assets 41 40
Amortization and impairment of intangible assets 97 97
Other general expenses 315 345
Total operating expenses 2,154 2,238
Operating income 1,065 905
Interest income 14 20
Interest expense (1) (1)
Intercompany interest income (expense) 105 112
Intercompany other income (expense) 47 63
Other income (expense) 72 8
Income from continuing operations before income taxes 1,302 1,107
Income tax expense (benefit) 256 178
Net income from continuing operations 1,046 929
Net income (loss) from discontinued operations (1) 0
Net income (loss) before equity in earnings of subsidiaries 1,045 929
Equity in earnings of subsidiaries 0 0
Net income 1,045 929
Less: Net income attributable to noncontrolling interests 19 17
Net income attributable to Aon shareholders 1,026 912
Consolidation Adjustments    
Revenue    
Total revenue 0 0
Expenses    
Compensation and benefits 0 0
Information technology 0 0
Premises 0 0
Depreciation of fixed assets 0 0
Amortization and impairment of intangible assets 0 0
Other general expenses 0 0
Total operating expenses 0 0
Operating income 0 0
Interest income (22) (27)
Interest expense 22 27
Intercompany interest income (expense) 0 0
Intercompany other income (expense) 0 0
Other income (expense) (1) (2)
Income from continuing operations before income taxes (1) (2)
Income tax expense (benefit) 0 0
Net income from continuing operations (1) (2)
Net income (loss) from discontinued operations 0 0
Net income (loss) before equity in earnings of subsidiaries (1) (2)
Equity in earnings of subsidiaries (3,008) (2,025)
Net income (3,009) (2,027)
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders $ (3,009) $ (2,027)
v3.20.1
Guarantee of Registered Securities - Condensed Consolidating Statement of Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Condensed Financial Statements, Captions [Line Items]    
Net income $ 791 $ 676
Less: Net income attributable to noncontrolling interests 19 17
Net income attributable to Aon shareholders 772 659
Change in fair value of financial instruments (5) 7
Foreign currency translation adjustments (397) 133
Postretirement benefit obligation 24 31
Total other comprehensive income (loss) (378) 171
Equity in other comprehensive income (loss) of subsidiaries, net of tax 0 0
Less: Other comprehensive loss attributable to noncontrolling interests (2) 2
Total other comprehensive income (loss) attributable to Aon shareholders (376) 169
Comprehensive income (loss) attributable to Aon shareholders 396 828
Aon Ireland    
Condensed Financial Statements, Captions [Line Items]    
Net income 773 0
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders 773 0
Change in fair value of financial instruments 0 0
Foreign currency translation adjustments 0 0
Postretirement benefit obligation 0 0
Total other comprehensive income (loss) 0 0
Equity in other comprehensive income (loss) of subsidiaries, net of tax (377) 0
Less: Other comprehensive loss attributable to noncontrolling interests 0 0
Total other comprehensive income (loss) attributable to Aon shareholders (377) 0
Comprehensive income (loss) attributable to Aon shareholders 396 0
Aon UK    
Condensed Financial Statements, Captions [Line Items]    
Net income 773 661
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders 773 661
Change in fair value of financial instruments 0 0
Foreign currency translation adjustments 0 0
Postretirement benefit obligation 0 0
Total other comprehensive income (loss) 0 0
Equity in other comprehensive income (loss) of subsidiaries, net of tax (377) 167
Less: Other comprehensive loss attributable to noncontrolling interests 0 0
Total other comprehensive income (loss) attributable to Aon shareholders (377) 167
Comprehensive income (loss) attributable to Aon shareholders 396 828
Aon Global Holdings Limited    
Condensed Financial Statements, Captions [Line Items]    
Net income 605 600
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders 605 600
Change in fair value of financial instruments 0 0
Foreign currency translation adjustments 0 0
Postretirement benefit obligation 0 0
Total other comprehensive income (loss) 0 0
Equity in other comprehensive income (loss) of subsidiaries, net of tax (370) 139
Less: Other comprehensive loss attributable to noncontrolling interests 0 0
Total other comprehensive income (loss) attributable to Aon shareholders (370) 139
Comprehensive income (loss) attributable to Aon shareholders 235 739
Aon Corporation    
Condensed Financial Statements, Captions [Line Items]    
Net income 604 513
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders 604 513
Change in fair value of financial instruments (2) 2
Foreign currency translation adjustments 0 0
Postretirement benefit obligation 13 22
Total other comprehensive income (loss) 11 24
Equity in other comprehensive income (loss) of subsidiaries, net of tax (381) 115
Less: Other comprehensive loss attributable to noncontrolling interests 0 0
Total other comprehensive income (loss) attributable to Aon shareholders (370) 139
Comprehensive income (loss) attributable to Aon shareholders 234 652
Other Non-Guarantor Subsidiaries    
Condensed Financial Statements, Captions [Line Items]    
Net income 1,045 929
Less: Net income attributable to noncontrolling interests 19 17
Net income attributable to Aon shareholders 1,026 912
Change in fair value of financial instruments (3) 5
Foreign currency translation adjustments (398) 131
Postretirement benefit obligation 11 9
Total other comprehensive income (loss) (390) 145
Equity in other comprehensive income (loss) of subsidiaries, net of tax 0 0
Less: Other comprehensive loss attributable to noncontrolling interests (2) 2
Total other comprehensive income (loss) attributable to Aon shareholders (388) 143
Comprehensive income (loss) attributable to Aon shareholders 638 1,055
Consolidation Adjustments    
Condensed Financial Statements, Captions [Line Items]    
Net income (3,009) (2,027)
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders (3,009) (2,027)
Change in fair value of financial instruments 0 0
Foreign currency translation adjustments 1 2
Postretirement benefit obligation 0 0
Total other comprehensive income (loss) 1 2
Equity in other comprehensive income (loss) of subsidiaries, net of tax 1,505 (421)
Less: Other comprehensive loss attributable to noncontrolling interests 0 0
Total other comprehensive income (loss) attributable to Aon shareholders 1,506 (419)
Comprehensive income (loss) attributable to Aon shareholders $ (1,503) $ (2,446)
v3.20.1
Guarantee of Registered Securities - Condensed Consolidating Statement of Financial Position (Details) - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Dec. 31, 2018
Current assets        
Cash and cash equivalents $ 690,000,000 $ 790,000,000    
Short-term investments 170,000,000 138,000,000    
Receivables, net 3,554,000,000 3,112,000,000    
Fiduciary assets 12,401,000,000 11,834,000,000    
Current intercompany receivables 0 0    
Other current assets 530,000,000 602,000,000    
Total current assets 17,345,000,000 16,476,000,000    
Goodwill 8,293,000,000 8,165,000,000    
Intangible assets, net 746,000,000 783,000,000    
Fixed assets, net 666,000,000 621,000,000    
Operating lease right-of-use assets 897,000,000 929,000,000    
Deferred tax assets 638,000,000 645,000,000    
Prepaid pension 1,164,000,000 1,216,000,000    
Non-current intercompany receivables 0 0    
Other non-current assets 533,000,000 570,000,000    
Investment in subsidiary 0 0    
Total assets 30,282,000,000 29,405,000,000    
Current liabilities        
Accounts payable and accrued liabilities 1,549,000,000 1,939,000,000    
Short-term debt and current portion of long-term debt 1,884,000,000 712,000,000    
Fiduciary liabilities 12,401,000,000 11,834,000,000    
Current intercompany payables 0 0    
Other current liabilities 1,277,000,000 1,086,000,000    
Total current liabilities 17,111,000,000 15,571,000,000    
Long-term debt 6,227,000,000 6,627,000,000    
Non-current operating lease liabilities 910,000,000 944,000,000    
Deferred tax liabilities 189,000,000 199,000,000    
Pension, other postretirement, and postemployment liabilities 1,655,000,000 1,738,000,000    
Non-current intercompany payables 0 0    
Other non-current liabilities 930,000,000 877,000,000    
Total liabilities 27,022,000,000 25,956,000,000    
Total Aon shareholders’ equity 3,169,000,000 3,375,000,000    
Noncontrolling interests 91,000,000 74,000,000    
Total equity 3,260,000,000 3,449,000,000 $ 4,862,000,000 $ 4,219,000,000
Total liabilities and equity 30,282,000,000 29,405,000,000    
Aon Ireland        
Current assets        
Cash and cash equivalents 0 0    
Short-term investments 0 0    
Receivables, net 0 0    
Fiduciary assets 0 0    
Current intercompany receivables 0 0    
Other current assets 0 0    
Total current assets 0 0    
Goodwill 0 0    
Intangible assets, net 0 0    
Fixed assets, net 0 0    
Operating lease right-of-use assets 0 0    
Deferred tax assets 0 0    
Prepaid pension 0 0    
Non-current intercompany receivables 0 0    
Other non-current assets 0 0    
Investment in subsidiary 3,169,000,000 3,375,000,000    
Total assets 3,169,000,000 3,375,000,000    
Current liabilities        
Accounts payable and accrued liabilities 0 0    
Short-term debt and current portion of long-term debt 0 0    
Fiduciary liabilities 0 0    
Current intercompany payables 0 0    
Other current liabilities 0 0    
Total current liabilities 0 0    
Long-term debt 0 0    
Non-current operating lease liabilities 0 0    
Deferred tax liabilities 0 0    
Pension, other postretirement, and postemployment liabilities 0 0    
Non-current intercompany payables 0 0    
Other non-current liabilities 0 0    
Total liabilities 0 0    
Total Aon shareholders’ equity 3,169,000,000 3,375,000,000    
Noncontrolling interests 0 0    
Total equity 3,169,000,000 3,375,000,000    
Total liabilities and equity 3,169,000,000 3,375,000,000    
Aon UK        
Current assets        
Cash and cash equivalents 0 0    
Short-term investments 0 0    
Receivables, net 0 0    
Fiduciary assets 0 0    
Current intercompany receivables 208,000,000 246,000,000    
Other current assets 0 0    
Total current assets 208,000,000 246,000,000    
Goodwill 0 0    
Intangible assets, net 0 0    
Fixed assets, net 0 0    
Operating lease right-of-use assets 0 0    
Deferred tax assets 89,000,000 89,000,000    
Prepaid pension 0 0    
Non-current intercompany receivables 397,000,000 868,000,000    
Other non-current assets 0 0    
Investment in subsidiary 8,650,000,000 8,899,000,000    
Total assets 9,344,000,000 10,102,000,000    
Current liabilities        
Accounts payable and accrued liabilities 1,345,000,000 2,157,000,000    
Short-term debt and current portion of long-term debt 696,000,000 112,000,000    
Fiduciary liabilities 0 0    
Current intercompany payables 310,000,000 234,000,000    
Other current liabilities 0 0    
Total current liabilities 2,351,000,000 2,503,000,000    
Long-term debt 3,822,000,000 4,223,000,000    
Non-current operating lease liabilities 0 0    
Deferred tax liabilities 0 0    
Pension, other postretirement, and postemployment liabilities 0 0    
Non-current intercompany payables 0 0    
Other non-current liabilities 2,000,000 1,000,000    
Total liabilities 6,175,000,000 6,727,000,000    
Total Aon shareholders’ equity 3,169,000,000 3,375,000,000    
Noncontrolling interests 0 0    
Total equity 3,169,000,000 3,375,000,000    
Total liabilities and equity 9,344,000,000 10,102,000,000    
Aon Global Holdings Limited        
Current assets        
Cash and cash equivalents 36,000,000 0    
Short-term investments 0 0    
Receivables, net 0 0    
Fiduciary assets 0 0    
Current intercompany receivables 90,000,000 89,000,000    
Other current assets 0 0    
Total current assets 126,000,000 89,000,000    
Goodwill 0 0    
Intangible assets, net 0 0    
Fixed assets, net 0 0    
Operating lease right-of-use assets 0 0    
Deferred tax assets 4,000,000 4,000,000    
Prepaid pension 0 0    
Non-current intercompany receivables 0 0    
Other non-current assets 0 0    
Investment in subsidiary 8,871,000,000 12,211,000,000    
Total assets 9,001,000,000 12,304,000,000    
Current liabilities        
Accounts payable and accrued liabilities 0 1,994,000,000    
Short-term debt and current portion of long-term debt 0 0    
Fiduciary liabilities 0 0    
Current intercompany payables 61,000,000 61,000,000    
Other current liabilities 0 0    
Total current liabilities 61,000,000 2,055,000,000    
Long-term debt 0 0    
Non-current operating lease liabilities 0 0    
Deferred tax liabilities 0 0    
Pension, other postretirement, and postemployment liabilities 0 0    
Non-current intercompany payables 0 0    
Other non-current liabilities 0 0    
Total liabilities 61,000,000 2,055,000,000    
Total Aon shareholders’ equity 8,940,000,000 10,249,000,000    
Noncontrolling interests 0 0    
Total equity 8,940,000,000 10,249,000,000    
Total liabilities and equity 9,001,000,000 12,304,000,000    
Aon Corporation        
Current assets        
Cash and cash equivalents 194,000,000 2,271,000,000    
Short-term investments 57,000,000 28,000,000    
Receivables, net 0 0    
Fiduciary assets 0 0    
Current intercompany receivables 2,710,000,000 1,214,000,000    
Other current assets 4,000,000 7,000,000    
Total current assets 2,965,000,000 3,520,000,000    
Goodwill 0 0    
Intangible assets, net 0 0    
Fixed assets, net 0 0    
Operating lease right-of-use assets 103,000,000 110,000,000    
Deferred tax assets 589,000,000 577,000,000    
Prepaid pension 7,000,000 7,000,000    
Non-current intercompany receivables 261,000,000 261,000,000    
Other non-current assets 25,000,000 32,000,000    
Investment in subsidiary 19,973,000,000 19,470,000,000    
Total assets 23,923,000,000 23,977,000,000    
Current liabilities        
Accounts payable and accrued liabilities 49,000,000 56,000,000    
Short-term debt and current portion of long-term debt 1,136,000,000 600,000,000    
Fiduciary liabilities 0 0    
Current intercompany payables 16,321,000,000 12,978,000,000    
Other current liabilities 82,000,000 80,000,000    
Total current liabilities 17,588,000,000 13,714,000,000    
Long-term debt 2,405,000,000 2,404,000,000    
Non-current operating lease liabilities 136,000,000 143,000,000    
Deferred tax liabilities 0 0    
Pension, other postretirement, and postemployment liabilities 1,287,000,000 1,348,000,000    
Non-current intercompany payables 7,210,000,000 7,212,000,000    
Other non-current liabilities 115,000,000 113,000,000    
Total liabilities 28,741,000,000 24,934,000,000    
Total Aon shareholders’ equity (4,818,000,000) (957,000,000)    
Noncontrolling interests 0 0    
Total equity (4,818,000,000) (957,000,000)    
Total liabilities and equity 23,923,000,000 23,977,000,000    
Other Non-Guarantor Subsidiaries        
Current assets        
Cash and cash equivalents 1,698,000,000 2,619,000,000    
Short-term investments 113,000,000 110,000,000    
Receivables, net 3,554,000,000 3,112,000,000    
Fiduciary assets 12,401,000,000 11,834,000,000    
Current intercompany receivables 14,875,000,000 12,710,000,000    
Other current assets 526,000,000 595,000,000    
Total current assets 33,167,000,000 30,980,000,000    
Goodwill 8,293,000,000 8,165,000,000    
Intangible assets, net 746,000,000 783,000,000    
Fixed assets, net 666,000,000 621,000,000    
Operating lease right-of-use assets 794,000,000 819,000,000    
Deferred tax assets 150,000,000 165,000,000    
Prepaid pension 1,157,000,000 1,209,000,000    
Non-current intercompany receivables 7,044,000,000 7,046,000,000    
Other non-current assets 508,000,000 538,000,000    
Investment in subsidiary 0 0    
Total assets 52,525,000,000 50,326,000,000    
Current liabilities        
Accounts payable and accrued liabilities 1,393,000,000 1,832,000,000    
Short-term debt and current portion of long-term debt 52,000,000 0    
Fiduciary liabilities 12,401,000,000 11,834,000,000    
Current intercompany payables 1,191,000,000 986,000,000    
Other current liabilities 1,195,000,000 1,006,000,000    
Total current liabilities 16,232,000,000 15,658,000,000    
Long-term debt 0 0    
Non-current operating lease liabilities 774,000,000 801,000,000    
Deferred tax liabilities 383,000,000 389,000,000    
Pension, other postretirement, and postemployment liabilities 368,000,000 390,000,000    
Non-current intercompany payables 492,000,000 963,000,000    
Other non-current liabilities 813,000,000 763,000,000    
Total liabilities 19,062,000,000 18,964,000,000    
Total Aon shareholders’ equity 33,372,000,000 31,288,000,000    
Noncontrolling interests 91,000,000 74,000,000    
Total equity 33,463,000,000 31,362,000,000    
Total liabilities and equity 52,525,000,000 50,326,000,000    
Consolidation Adjustments        
Current assets        
Cash and cash equivalents (1,238,000,000) (4,100,000,000)    
Short-term investments 0 0    
Receivables, net 0 0    
Fiduciary assets 0 0    
Current intercompany receivables (17,883,000,000) (14,259,000,000)    
Other current assets 0 0    
Total current assets (19,121,000,000) (18,359,000,000)    
Goodwill 0 0    
Intangible assets, net 0 0    
Fixed assets, net 0 0    
Operating lease right-of-use assets 0 0    
Deferred tax assets (194,000,000) (190,000,000)    
Prepaid pension 0 0    
Non-current intercompany receivables (7,702,000,000) (8,175,000,000)    
Other non-current assets 0 0    
Investment in subsidiary (40,663,000,000) (43,955,000,000)    
Total assets (67,680,000,000) (70,679,000,000)    
Current liabilities        
Accounts payable and accrued liabilities (1,238,000,000) (4,100,000,000)    
Short-term debt and current portion of long-term debt 0 0    
Fiduciary liabilities 0 0    
Current intercompany payables (17,883,000,000) (14,259,000,000)    
Other current liabilities 0 0    
Total current liabilities (19,121,000,000) (18,359,000,000)    
Long-term debt 0 0    
Non-current operating lease liabilities 0 0    
Deferred tax liabilities (194,000,000) (190,000,000)    
Pension, other postretirement, and postemployment liabilities 0 0    
Non-current intercompany payables (7,702,000,000) (8,175,000,000)    
Other non-current liabilities 0 0    
Total liabilities (27,017,000,000) (26,724,000,000)    
Total Aon shareholders’ equity (40,663,000,000) (43,955,000,000)    
Noncontrolling interests 0 0    
Total equity (40,663,000,000) (43,955,000,000)    
Total liabilities and equity $ (67,680,000,000) $ (70,679,000,000)    
v3.20.1
Guarantee of Registered Securities - Condensed Consolidating Statement of Cash Flows (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Cash flows from operating activities    
Cash provided by (used for) operating activities $ 338 $ 74
Cash flows from investing activities    
Proceeds from investments 6 12
Payments for investments (43) (14)
Net sales (purchases) of short-term investments - non-fiduciary (38) 41
Acquisition of businesses, net of cash acquired (334) (15)
Sale of businesses, net of cash sold 30 6
Capital expenditures (59) (57)
Cash used for investing activities (438) (27)
Cash flows from financing activities    
Share repurchase (463) (100)
Advances from (to) affiliates 0 0
Issuance of shares for employee benefit plans (112) (98)
Issuance of debt 2,060 871
Repayment of debt (1,341) (694)
Cash dividends to shareholders (102) (96)
Noncontrolling interests and other financing activities 40 (23)
Cash provided by (used for) financing activities 82 (140)
Effect of exchange rates on cash and cash equivalents (82) 37
Net increase (decrease) in cash and cash equivalents (100) (56)
Cash and cash equivalents at beginning of period 790 656
Cash and cash equivalents at end of period 690 600
Aon Ireland    
Cash flows from operating activities    
Cash provided by (used for) operating activities 0 0
Cash flows from investing activities    
Proceeds from investments 0 0
Payments for investments 0 0
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  
Cash used for investing activities 0 0
Cash flows from financing activities    
Share repurchase 0 0
Advances from (to) affiliates 0 0
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 provided by (used for) financing activities 0 0
Effect of exchange rates on cash and cash equivalents 0 0
Net increase (decrease) in cash and cash equivalents 0 0
Cash and cash equivalents at beginning of period 0 0
Cash and cash equivalents at end of period 0 0
Aon UK    
Cash flows from operating activities    
Cash provided by (used for) operating activities 1,561 (11)
Cash flows from investing activities    
Proceeds from investments   0
Payments for investments (450) 0
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  
Cash used for investing activities (450) 0
Cash flows from financing activities    
Share repurchase (463) (100)
Advances from (to) affiliates (618) 305
Issuance of shares for employee benefit plans (112) (98)
Issuance of debt 457 384
Repayment of debt (273) (384)
Cash dividends to shareholders (102) (96)
Noncontrolling interests and other financing activities 0 0
Cash provided by (used for) financing activities (1,111) 11
Effect of exchange rates on cash and cash equivalents 0 0
Net increase (decrease) in cash and cash equivalents 0 0
Cash and cash equivalents at beginning of period 0 0
Cash and cash equivalents at end of period 0 0
Aon Global Holdings Limited    
Cash flows from operating activities    
Cash provided by (used for) operating activities 3,648 529
Cash flows from investing activities    
Proceeds from investments   72
Payments for investments (518) 0
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  
Cash used for investing activities (518) 72
Cash flows from financing activities    
Share repurchase 0 0
Advances from (to) affiliates (3,094) (601)
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 provided by (used for) financing activities (3,094) (601)
Effect of exchange rates on cash and cash equivalents 0 0
Net increase (decrease) in cash and cash equivalents 36 0
Cash and cash equivalents at beginning of period 0 0
Cash and cash equivalents at end of period 36 0
Aon Corporation    
Cash flows from operating activities    
Cash provided by (used for) operating activities (512) (34)
Cash flows from investing activities    
Proceeds from investments 2 8
Payments for investments (30) (9)
Net sales (purchases) of short-term investments - non-fiduciary (28) 9
Acquisition of businesses, net of cash acquired 0 0
Sale of businesses, net of cash sold 0 0
Capital expenditures 0 0
Cash used for investing activities (56) 8
Cash flows from financing activities    
Share repurchase 0 0
Advances from (to) affiliates (2,044) (265)
Issuance of shares for employee benefit plans 0 0
Issuance of debt 1,603 485
Repayment of debt (1,068) (310)
Cash dividends to shareholders 0 0
Noncontrolling interests and other financing activities 0 0
Cash provided by (used for) financing activities (1,509) (90)
Effect of exchange rates on cash and cash equivalents 0 0
Net increase (decrease) in cash and cash equivalents (2,077) (116)
Cash and cash equivalents at beginning of period 2,271 862
Cash and cash equivalents at end of period 194 746
Other Non-Guarantor Subsidiaries    
Cash flows from operating activities    
Cash provided by (used for) operating activities 852 143
Cash flows from investing activities    
Proceeds from investments 4 4
Payments for investments (13) (77)
Net sales (purchases) of short-term investments - non-fiduciary (10) 32
Acquisition of businesses, net of cash acquired (334) (15)
Sale of businesses, net of cash sold 30 6
Capital expenditures (59) (57)
Cash used for investing activities (382) (107)
Cash flows from financing activities    
Share repurchase 0 0
Advances from (to) affiliates (1,349) (550)
Issuance of shares for employee benefit plans 0 0
Issuance of debt 0 2
Repayment of debt 0 0
Cash dividends to shareholders 0 0
Noncontrolling interests and other financing activities 40 (23)
Cash provided by (used for) financing activities (1,309) (571)
Effect of exchange rates on cash and cash equivalents (82) 37
Net increase (decrease) in cash and cash equivalents (921) (498)
Cash and cash equivalents at beginning of period 2,619 3,473
Cash and cash equivalents at end of period 1,698 2,975
Consolidation Adjustments    
Cash flows from operating activities    
Cash provided by (used for) operating activities (5,211) (553)
Cash flows from investing activities    
Proceeds from investments   (72)
Payments for investments 968 72
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 used for investing activities 968 0
Cash flows from financing activities    
Share repurchase 0 0
Advances from (to) affiliates 7,105 1,111
Issuance of shares for employee benefit plans 0 0
Issuance of debt   0
Repayment of debt 0 0
Cash dividends to shareholders 0 0
Noncontrolling interests and other financing activities 0 0
Cash provided by (used for) financing activities 7,105 1,111
Effect of exchange rates on cash and cash equivalents 0 0
Net increase (decrease) in cash and cash equivalents 2,862 558
Cash and cash equivalents at beginning of period (4,100) (3,679)
Cash and cash equivalents at end of period $ (1,238) $ (3,121)
v3.20.1
Subsequent Events (Details)
Apr. 27, 2020
Apr. 24, 2020
Apr. 01, 2020
USD ($)
Mar. 31, 2020
USD ($)
Subsequent Event        
Subsequent Event [Line Items]        
Common stock exchange ratio, related to reorganization     1  
Equity incentive and compensation plans, exchange ratio, related to reorganization     1  
Subsequent Event | Named executive officers and non-executive directors        
Subsequent Event [Line Items]        
Temporary compensation reduction, percentage   50.00%    
Subsequent Event | Employees        
Subsequent Event [Line Items]        
Temporary compensation reduction, percentage 20.00%      
Commercial paper        
Subsequent Event [Line Items]        
Line of credit facility, maximum borrowing capacity       $ 1,650,000,000
Commercial paper | U.S. Program        
Subsequent Event [Line Items]        
Line of credit facility, maximum borrowing capacity       $ 600,000,000
Commercial paper | U.S. Program | Subsequent Event        
Subsequent Event [Line Items]        
Line of credit facility, increase of maximum borrowing capacity     $ 300,000,000  
Line of credit facility, maximum borrowing capacity     $ 900,000,000  
v3.20.1
Label Element Value
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 $ 3,443,000,000
Retained Earnings [Member]  
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 1,248,000,000
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (6,000,000)
Noncontrolling Interest [Member]  
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 74,000,000
AOCI Attributable to Parent [Member]  
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 (4,033,000,000)
Common Stock Including Additional Paid in Capital [Member]  
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 $ 6,154,000,000