AON PLC, 10-Q filed on 4/26/2019
Quarterly Report
v3.19.1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2019
Apr. 25, 2019
Document and Entity Information    
Entity Registrant Name Aon plc  
Entity Central Index Key 0000315293  
Document Type 10-Q  
Document Period End Date Mar. 31, 2019  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Emerging Growth Company false  
Entity Small Business false  
Entity Common Stock, Shares Outstanding   240,521,662
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q1  
v3.19.1
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Revenue    
Total revenue $ 3,143 $ 3,090
Expenses    
Compensation and benefits 1,584 1,616
Information technology 117 115
Premises 87 93
Depreciation of fixed assets 40 39
Amortization and impairment of intangible assets 97 110
Other general expenses 346 318
Total operating expenses 2,271 2,291
Operating income 872 799
Interest income 2 4
Interest expense (72) (70)
Other income (expense) 0 (15)
Income from continuing operations before income taxes 802 718
Income taxes 126 114
Net income from continuing operations 676 604
Net income from discontinued operations 0 6
Net income 676 610
Less: Net income attributable to noncontrolling interests 17 16
Net income attributable to Aon shareholders $ 659 $ 594
Basic net income per share attributable to Aon shareholders    
Continuing operations (in dollars per share) $ 2.72 $ 2.37
Discontinued operations (in dollars per share) 0 0.02
Net income (in dollars per share) 2.72 2.39
Diluted net income per share attributable to Aon shareholders    
Continuing operations (in dollars per share) 2.70 2.35
Discontinued operations (in dollars per share) 0 0.02
Net income (in dollars per share) $ 2.70 $ 2.37
Weighted average ordinary shares outstanding - basic (in shares) 242.2 248.5
Weighted average ordinary shares outstanding - diluted (in shares) 243.7 250.2
v3.19.1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Statement of Comprehensive Income [Abstract]    
Net income $ 676 $ 610
Less: Net income attributable to noncontrolling interests 17 16
Net income attributable to Aon shareholders 659 594
Other comprehensive income, net of tax:    
Change in fair value of financial instruments 7 14
Foreign currency translation adjustments 133 247
Postretirement benefit obligation 31 48
Total other comprehensive income 171 309
Less: Other comprehensive income attributable to noncontrolling interests 2 3
Total other comprehensive income attributable to Aon shareholders 169 306
Comprehensive income (loss) attributable to Aon shareholders $ 828 $ 900
v3.19.1
Condensed Consolidated Statements of Financial Position - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Current assets    
Cash and cash equivalents $ 600 $ 656
Short-term investments 134 172
Receivables, net 3,242 2,760
Fiduciary assets 11,412 10,166
Other current assets 531 618
Total current assets 15,919 14,372
Goodwill 8,219 8,171
Intangible assets, net 1,077 1,149
Fixed assets, net 606 588
Operating lease right-of-use assets 993  
Deferred tax assets 588 561
Prepaid pension 1,224 1,133
Other non-current assets 509 448
Total assets 29,135 26,422
Current liabilities    
Accounts payable and accrued liabilities 1,479 1,943
Short-term debt and current portion of long-term debt 426 251
Fiduciary liabilities 11,412 10,166
Other current liabilities 1,220 936
Total current liabilities 14,537 13,296
Long-term debt 5,990 5,993
Non-current operating lease liabilities 978  
Deferred tax liabilities 205 181
Pension, other postretirement, and postemployment liabilities 1,590 1,636
Other non-current liabilities 973 1,097
Total liabilities 24,273 22,203
Equity    
Ordinary shares - $0.01 nominal value Authorized: 750 shares (issued: 2019 - 240.9; 2018 - 240.1) 2 2
Additional paid-in capital 5,958 5,965
Retained earnings 2,555 2,093
Accumulated other comprehensive loss (3,740) (3,909)
Total Aon shareholders' equity 4,775 4,151
Noncontrolling interests 87 68
Total equity 4,862 4,219
Total liabilities and equity $ 29,135 $ 26,422
v3.19.1
Condensed Consolidated Statements of Financial Position (Parenthetical) - $ / shares
Mar. 31, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Common stock, nominal or par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized shares (in shares) 750,000,000 750,000,000
Common stock, issued shares (in shares) 240,900,000 240,100,000
v3.19.1
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, 2017   247.6      
Beginning Balance at Dec. 31, 2017 $ 5,140 $ 5,777 $ 2,795 $ (3,497) $ 65
Increase (Decrease) in Shareholders' Equity          
Net income 610   594   16
Shares issued - employee stock compensation plans (in shares)   1.5      
Shares issued - employee stock compensation plans (109) $ (109)      
Shares purchased (in shares)   (3.9)      
Shares purchased (553)   (553)    
Share-based compensation expense 77 $ 77      
Dividends to shareholders ($0.40 per share) (89)   (89)    
Net change in fair value of financial instruments 14     14  
Net foreign currency translation adjustments 247     244 3
Net postretirement benefit obligation 48     48  
Ending Balance (in shares) at Mar. 31, 2018   245.2      
Ending Balance at Mar. 31, 2018 $ 5,385 $ 5,745 2,747 (3,191) 84
Beginning Balance (in shares) at Dec. 31, 2018 240.1 240.1      
Beginning Balance at Dec. 31, 2018 $ 4,219 $ 5,967 2,093 (3,909) 68
Increase (Decrease) in Shareholders' Equity          
Net income 676   659   17
Shares issued - employee stock compensation plans (in shares)   1.4      
Shares issued - employee stock compensation plans (96) $ (96)      
Shares purchased (in shares)   (0.6)      
Shares purchased (101)   (101)    
Share-based compensation expense 89 $ 89      
Dividends to shareholders ($0.40 per share) (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 240.9 240.9      
Ending Balance at Mar. 31, 2019 $ 4,862 $ 5,960 $ 2,555 $ (3,740) $ 87
v3.19.1
Condensed Consolidated Statement of Shareholders' Equity Unaudited (Parenthetical) - $ / shares
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]    
Dividends (in dollars per share) $ 0.40 $ 0.36
v3.19.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Cash flows from operating activities    
Net income $ 676 $ 610
Net income from discontinued operations 0 6
Adjustments to reconcile net income to cash provided by operating activities:    
Loss from sales of businesses, net (4) 1
Depreciation of fixed assets 40 39
Amortization and impairment of intangible assets 97 110
Share-based compensation expense 89 77
Deferred income taxes (25) 26
Change in assets and liabilities:    
Fiduciary receivables (609) (605)
Short-term investments — funds held on behalf of clients (541) (195)
Fiduciary liabilities 1,150 800
Receivables, net (458) (269)
Accounts payable and accrued liabilities (454) (439)
Restructuring reserves (25) (24)
Current income taxes 118 30
Pension, other postretirement and postemployment liabilities (54) (53)
Other assets and liabilities 74 38
Cash provided by operating activities 74 140
Cash flows from investing activities    
Proceeds from investments 12 17
Payments for investments (14) (11)
Net sales of short-term investments — non-fiduciary 41 415
Acquisition of businesses, net of cash acquired (15) (29)
Sale of businesses, net of cash sold 6 (1)
Capital expenditures (57) (45)
Cash provided by (used for) investing activities (27) 346
Cash flows from financing activities    
Share repurchase (100) (569)
Issuance of shares for employee benefit plans (98) (109)
Issuance of debt 871 808
Repayment of debt (694) (704)
Cash dividends to shareholders (96) (89)
Noncontrolling interests and other financing activities (23) 0
Cash used for financing activities (140) (663)
Effect of exchange rates on cash and cash equivalents 37 18
Net increase (decrease) in cash and cash equivalents (56) (159)
Cash and cash equivalents at beginning of period 656 756
Cash and cash equivalents at end of period 600 597
Supplemental disclosures:    
Interest paid 27 58
Income taxes paid, net of refunds $ 33 $ 58
v3.19.1
Basis of Presentation
3 Months Ended
Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements and Notes thereto (the “Financial Statements”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Financial Statements include the accounts of Aon plc and all of its controlled subsidiaries (“Aon” or the “Company”). Intercompany accounts and transactions have been eliminated. The Financial Statements include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows for all periods presented.
Certain information and disclosures normally included in the Financial Statements prepared in accordance with U.S. GAAP have been condensed or omitted. These Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The results for the three months ended March 31, 2019 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2019.
Use of Estimates
The preparation of the accompanying Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the Financial Statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate.  Illiquid credit markets, volatile equity markets, and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the Financial Statements in future periods.
v3.19.1
Accounting Principles and Practices
3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Accounting Principles and Practices Accounting Principles and Practices
Adoption of New Accounting Standards
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
In February 2018, the FASB issued new accounting guidance related to reclassification of certain tax effects from accumulated other comprehensive income. The guidance allowed a reclassification from accumulated comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The guidance was effective for the Company in the first quarter of 2019. There was no impact on the net income of the Company as Aon did not elect to reclassify stranded tax effects on the Condensed Consolidated Statement of Financial Position. It is the Company’s policy to release income tax effects from accumulated other comprehensive loss using the portfolio approach.
Targeted Improvements to Accounting for Hedging Activities
In August 2017, the FASB issued new accounting guidance on targeted improvements to accounting for hedging activities. The new guidance amended its hedge accounting model to enable entities to better portray their risk management activities in the financial statements. The guidance eliminated the requirement to separately measure and report hedge ineffectiveness and required the effect of a hedging instrument to be presented in the same income statement line as the hedged item. The new guidance was effective for Aon in the first quarter of 2019 and the Company adopted it on a modified retrospective basis with no cumulative effect adjustment to accumulated other comprehensive income or corresponding adjustment to Retained earnings. Changes to the Condensed Consolidated Statement of Income and financial statement disclosures were applied prospectively. Under the new guidance, gains or losses on derivative hedges are recognized in revenue as compared to other income (expense) under the previous guidance. The adoption of this guidance had no impact on the net income of the Company.
Leases
In February 2016, the FASB issued a new accounting standard on leases, which requires lessees to recognize assets and liabilities for most leases. Under the new standard, a lessee is required to recognize in the Consolidated Statements of Financial Position, liabilities to make future lease payments and right-of-use (“ROU”) assets representing its right to use the underlying assets for the lease term. The recognition, measurement, timing, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP.
The Company adopted the new standard as of January 1, 2019, using the modified retrospective approach for all leases existing at, or entered into after, the period of adoption. Under this approach, prior periods were not restated. Rather, lease balances and other disclosures for prior periods were provided in the notes to the financial statements as previously reported, and the cumulative effect of initially applying the guidance was recognized in the Condensed Consolidated Statement of Financial Position.
The modified retrospective approach includes several optional practical expedients available that entities may elect to apply upon transition. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allows a lessee to carryforward their population of existing leases, the classification of each lease, as well as the treatment of initial direct costs as of the period of adoption. In addition, the Company elected the practical expedient related to lease and non-lease components, as an accounting policy election for all asset classes, which allows a lessee to not separate non-lease from lease components and instead account for consideration paid in a contract as a single lease component. Lastly, the Company did not elect the practical expedient related to hindsight analysis which allows a lessee to use hindsight in determining the lease term and in assessing impairment of the entity’s ROU assets.
The Company has made a policy election to not recognize ROU assets and lease liabilities that arise from leases with an initial term of twelve months or less on the Condensed Consolidated Statements of Financial Position. However, the Company will recognize these lease payments in the Condensed Consolidated Statements of Income on a straight-line basis over the lease term and variable lease payments in the period in which the obligation is incurred. The Company has chosen to apply this accounting policy across all classes of underlying assets. Additionally, upon adoption, the Company utilized a discount rate to determine the present value of the lease payments based on information available as of January 1, 2019.
Beginning January 1, 2019, operating ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at the commencement date. Operating leases in effect prior to January 1, 2019 were recognized at the present value of the remaining payments on the remaining lease term as of January 1, 2019. Upon adoption, the Company recognized ROU assets and lease liabilities of $1.1 billion and $1.3 billion, respectively. The standard had an insignificant impact on the Condensed Consolidated Statements of Income and no impact on the Condensed Consolidated Statements of Cash Flows. Refer to Note 20 “Lease Commitments” for further information including significant assumptions and judgments made.

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

 
$
1,021

 
$
1,021

Other non-current assets
$
448

 
$
78

 
$
526

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Other current liabilities
$
936

 
$
219

 
$
1,155

Non-current operating lease liabilities
$

 
$
1,014

 
$
1,014

Other non-current liabilities
$
1,097

 
$
(134
)
 
$
963


Accounting Standards Issued But Not Yet Adopted
Changes to the Disclosure Requirements for Defined Benefit Plans
In August 2018, the FASB issued new accounting guidance related to the disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. The guidance requires sponsors of these plans to provide additional disclosures, including weighted average interest rates used in the entity’s cash balance pension plans and a narrative description of reasons for any significant gains or losses impacting the benefit obligation for the period, and eliminates certain previous disclosure requirements. The guidance is effective for Aon in the first quarter of 2021 with early adoption permitted and will be applied retrospectively. The Company is currently evaluating the impact that the guidance will have on the Financial Statements and the period of adoption.
Simplifying the Test for Goodwill Impairment
In January 2017, the FASB issued new accounting guidance on simplifying the test for goodwill impairment. Currently the standard requires an entity to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. The new guidance removes Step 2. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. An entity will apply the new guidance on a prospective basis. The new guidance is effective for Aon in the first quarter of 2020 and early adoption is permitted. The Company is currently evaluating the period of adoption, but does not expect a significant impact on the Financial Statements.
Credit Losses
In June 2016, the FASB issued a new accounting standard on the measurement of credit losses on financial instruments. The new standard replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. An entity will apply the new standard through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the standard is effective. The standard is effective for Aon in the first quarter of 2020 and early adoption is permitted. The Company is currently evaluating the impact that the standard will have on its Financial Statements and the period of adoption.
v3.19.1
Revenue from Contracts with Customers
3 Months Ended
Mar. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Disaggregation of Revenue
The following table summarizes revenue from contracts with customers by principal service line (in millions):
 
 
Three Months Ended March 31
 
 
2019
 
2018
Commercial Risk Solutions
 
$
1,118

 
$
1,184

Reinsurance Solutions
 
788

 
742

Retirement Solutions
 
420

 
424

Health Solutions
 
486

 
451

Data & Analytic Services
 
336

 
294

Elimination
 
(5
)
 
(5
)
Total revenue
 
$
3,143

 
$
3,090


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
 
 
2019
 
2018
United States
 
$
1,161

 
$
1,116

Americas other than United States
 
226

 
237

United Kingdom
 
452

 
484

Europe, Middle East, & Africa other than United Kingdom
 
1,009

 
979

Asia Pacific
 
295

 
274

Total revenue
 
$
3,143

 
$
3,090



Contract Costs

An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):
As of
 
March 31,
2019
 
December 31,
2018
Balance at beginning of period
 
$
329

 
$
298

Additions
 
346

 
1,504

Amortization
 
(439
)
 
(1,465
)
Impairment
 

 

Foreign currency translation and other
 

 
(8
)
Balance at end of period
 
$
236

 
$
329



An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):
As of
 
March 31,
2019
 
December 31,
2018
Balance at beginning of period
 
$
156

 
$
145

Additions
 
9

 
53

Amortization
 
(11
)
 
(41
)
Impairment
 

 

Foreign currency translation and other
 
1

 
(1
)
Balance at end of period
 
$
155

 
$
156

v3.19.1
Cash and Cash Equivalents and Short-term Investments
3 Months Ended
Mar. 31, 2019
Cash, Cash Equivalents, and Short-term Investments [Abstract]  
Cash and Cash Equivalents and Short-term Investments Cash and Cash Equivalents and Short-term Investments
Cash and cash equivalents include cash balances and all highly liquid instruments with initial maturities of three months or less.  Short-term investments consist of money market funds. The estimated fair value of cash and cash equivalents and short-term investments approximates their carrying values.
At March 31, 2019, Cash and cash equivalents and Short-term investments were $734 million compared to $828 million at December 31, 2018, a decrease of $94 million. Of the total balances, $140 million and $91 million were restricted as to their use at March 31, 2019 and December 31, 2018, respectively. Included within Cash and cash equivalents as of March 31, 2019, was $48 million of pledged cash, which was released on April 1, 2019. Included within Short-term investments as of March 31, 2019 and December 31, 2018 was £42.7 million ($56.4 million at March 31, 2019 exchange rates and $53.9 million at December 31, 2018 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.
v3.19.1
Other Financial Data
3 Months Ended
Mar. 31, 2019
Other Financial Data [Abstract]  
Other Financial Data Other Financial Data
Condensed Consolidated Statements of Income Information
Other Income (Expense)
Other income (expense) consists of the following (in millions):
 
Three Months Ended March 31
 
2019
 
2018
Foreign currency remeasurement
$
(11
)
 
$
(16
)
Disposal of business
5

 
(1
)
Pension and other postretirement
4

 
2

Equity earnings
1

 
1

Financial instruments
1

 

Other

 
(1
)
Total
$

 
$
(15
)

Condensed Consolidated Statements of Financial Position Information
Allowance for Doubtful Accounts
An analysis of the allowance for doubtful accounts are as follows (in millions):
 
Three Months Ended March 31
 
2019
 
2018
Balance at beginning of period
$
64

 
$
59

Provision charged to Other general expenses
8

 
8

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

 
1

Balance at end of period
$
64

 
$
65


Other Current Assets
The components of Other current assets are as follows (in millions):
As of
March 31,
2019
 
December 31,
2018
Costs to fulfill contracts with customers (1)
$
236

 
$
329

Prepaid expenses
108

 
97

Taxes receivable
81

 
113

Other (2)
106

 
79

Total
$
531

 
$
618


(1)
Refer to Note 3 “Revenue from Contracts with Customers” for further information.
(2)
December 31, 2018 includes $12 million previously classified as “Receivables from the Divested Business”.
Other Non-Current Assets
The components of Other non-current assets are as follows (in millions):
As of
March 31,
2019
 
December 31,
2018
Costs to obtain contracts with customers (1)
$
155

 
$
156

Taxes receivable
99

 
100

Leases (2)
70

 

Investments
55

 
54

Other
130

 
138

Total
$
509

 
$
448


(1)
Refer to Note 3 “Revenue from Contracts with Customers” for further information.
(2)
Refer to Note 20 “Lease Commitments” for further information.
Other Current Liabilities
The components of Other current liabilities are as follows (in millions):
As of
March 31,
2019
 
December 31,
2018
Deferred revenue (1)
$
305

 
$
251

Leases (2)
241

 

Taxes payable
158

 
83

Other
516

 
602

Total
$
1,220

 
$
936


(1)
During the Three Months Ended March 31, 2019, and twelve months ended December 31, 2018, $134 million and $487 million, respectively, was recognized in the Condensed Consolidated Statement of Income.
(2)
Refer to Note 20 “Lease Commitments” for further information.
Other Non-Current Liabilities
The components of Other non-current liabilities are as follows (in millions):
As of
March 31,
2019
 
December 31,
2018
Taxes payable (1)
$
596

 
$
585

Leases
50

 
169

Deferred revenue
60

 
65

Compensation and benefits
44

 
56

Other
223

 
222

Total
$
973

 
$
1,097


(1) Includes $238 million and $240 million for the non-current portion of the Transition Tax as of March 31, 2019 and December 31, 2018, respectively.
v3.19.1
Discontinued Operations
3 Months Ended
Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
On February 9, 2017, the Company entered into a Purchase Agreement with Tempo Acquisition, LLC (the “Purchase Agreement”) to sell its benefits administration and business process outsourcing business (the “Divested Business”) to an entity formed and controlled by affiliates of The Blackstone Group L.P. (the “Buyer”) and certain designated purchasers that are direct or indirect subsidiaries of the Buyer.
On May 1, 2017, the Buyer purchased all of the outstanding equity interests of the Divested Business, plus certain related assets and liabilities, for a purchase price of $4.3 billion in cash paid at closing, subject to customary adjustments set forth in the Purchase Agreement, and deferred consideration of up to $500 million (the “Transaction”). Cash proceeds after customary adjustments and before taxes due were $4.2 billion.
Aon and the Buyer entered into certain transaction related agreements at the closing, including two commercial agreements, a transition services agreement, certain intellectual property license agreements, sub-leases, and other customary agreements. Aon expects to continue to be a significant client of the Divested Business and the Divested Business has agreed to use Aon for its broking and other services for a specified period of time.
The financial results of the Divested Business for the three months ended March 31, 2019 and 2018 are presented as Income from discontinued operations on the Company’s Condensed Consolidated Statements of Income. The following table presents the financial results of the Divested Business (in millions):
 
 
Three Months Ended March 31

 
2019
 
2018
Expenses
 
 
 
 
Total operating expenses
 
$

 
$
3

Loss from discontinued operations before income taxes
 

 
(3
)
Income tax benefit
 

 
(1
)
Net loss from discontinued operations excluding gain
 

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

 
8

Net income from discontinued operations
 
$

 
$
6


There were no Cash and cash equivalents of discontinued operations at March 31, 2019. Total proceeds received for the sale of the divested business and taxes paid as a result of the sale are recognized on the Condensed Consolidated Statements of Cash Flows in Cash provided by investing activities - continuing operations and Cash provided by operating activities - continuing operations, respectively.
v3.19.1
Restructuring
3 Months Ended
Mar. 31, 2019
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
In 2017, Aon initiated a global restructuring plan (the “Restructuring Plan”) in connection with the sale of the Divested Business. The Restructuring Plan is intended to streamline operations across the organization and deliver greater efficiency, insight, and connectivity. The Company expects these restructuring activities and related expenses to affect continuing operations through the
fourth quarter of 2019, including an estimated 4,800 to 5,400 role eliminations. In the fourth quarter of 2018, Aon expanded the Restructuring Plan, which resulted in additional expected costs of approximately $200 million, consisting of $150 million of cash investment and $50 million of non-cash charges.
The Restructuring Plan is expected to result in cumulative costs of approximately $1,225 million through the end of the plan, consisting of approximately $450 million in employee termination costs, $130 million in technology rationalization costs, $65 million in lease consolidation costs, $50 million in non-cash asset impairments, and $530 million in other costs, including certain separation costs associated with the sale of the Divested Business.
From the inception of the Restructuring Plan through March 31, 2019, the Company has eliminated 4,491 positions and incurred total expenses of $1,073 million for restructuring and related separation costs. These charges are included in Compensation and benefits, Information technology, Premises, Depreciation of fixed assets, and Other general expenses in the accompanying Condensed Consolidated Statements of Income.
The following table summarizes restructuring and separation costs by type that have been incurred through March 31, 2019 and are estimated to be incurred through the end of the Restructuring Plan (in millions). Estimated costs by type may be revised in future periods as these assumptions are updated:
 
 
Three Months Ended March 31, 2019
 
Inception to Date
 
Estimated Remaining Costs
 
Estimated Total Cost (1)
Workforce reduction
 
$
24

 
$
438

 
$
12

 
$
450

Technology rationalization (2)
 
11

 
91

 
39

 
130

Lease consolidation (2)
 
9

 
45

 
20

 
65

Asset impairments
 

 
39

 
11

 
50

Other costs associated with restructuring and separation (2) (3)
 
47

 
460

 
70

 
530

Total restructuring and related expenses
 
$
91

 
$
1,073

 
$
152

 
$
1,225

(1)
Actual costs, when incurred, may vary due to changes in the assumptions built into the Restructuring Plan.  Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives.
(2)
Total contract termination costs incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs associated with restructuring and separation, respectively, for the three months ended March 31, 2019 were $1 million, $9 million, and $2 million; and since inception of the Restructuring Plan were, respectively, $7 million, $42 million, and $90 million. Total estimated contract termination costs expected to be incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs associated with restructuring and separation, respectively, are $15 million, $80 million, and $95 million.
(3)
Other costs associated with the Restructuring Plan include those to separate the Divested Business, as well as moving costs, and consulting and legal fees. These costs are generally recognized when incurred.

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

Expensed
 
88

Cash payments
 
(113
)
Foreign currency translation
 
(1
)
Balance as of March 31, 2019
 
$
175

v3.19.1
Acquisitions and Dispositions of Businesses
3 Months Ended
Mar. 31, 2019
Business Combinations [Abstract]  
Acquisitions and Dispositions of Businesses Acquisitions and Dispositions of Businesses
Completed Acquisitions
The Company completed one acquisition during the three months ended March 31, 2019 and eight acquisitions during the twelve months ended December 31, 2018. The following table includes the fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisitions (in millions):
 
 
Three Months Ended March 31, 2019
Consideration Transferred
 
$
17

Deferred and contingent consideration
 
5

Aggregate consideration transferred
 
$
22

 
 
 
Assets acquired
 
 
Cash and cash equivalents
 
$
2

Goodwill
 
15

Intangible assets, net
 
9

Other assets
 
4

Total assets acquired
 
30

Liabilities assumed
 
 
Current liabilities
 
6

Other non-current liabilities
 
2

Total liabilities assumed
 
8

Net assets acquired
 
$
22


The results of operations of these acquisitions are included in the Financial Statements as of the respective acquisition dates. The Company’s results of operations would not have been materially different if these acquisitions had been reported from the beginning of the period in which they were acquired.
2019 Acquisitions
On January 1, 2019, the Company completed the transaction to acquire Chapka Assurances SAS based in France.
2018 Acquisitions
On December 31, 2018, the Company completed the transaction to acquire certain assets of Bill Beatty Insurance Agency, Inc. based in the United States.
On November 15, 2018, the Company completed the transaction to acquire certain business and assets of North Harbour Insurance Services (1985) Limited, a New Zealand-based firm.
On October 25, 2018, the Company completed the transaction to acquire 100% capital of GEFASS S.R.L and GE.F.IT S.R.L., Italy-based firms specialized in Bancassurance schemes.
On May 9, 2018, the Company completed the transaction to acquire certain assets of 601West, a division of Lee & Hayes, P.L.L.C. based in the United States.
On April 24, 2018, the Company completed the transaction to acquire Inspiring Benefits, S.L., a Spain-based firm specialized in employee loyalty, wellbeing, and rewards programs.
On March 1, 2018, the Company completed the transaction to acquire the business and assets of the trade credit business of Niche International Business Proprietary Limited, a trade credit brokerage based in Johannesburg, South Africa.
On March 1, 2018, the Company completed the transaction to acquire Affinity Risk Partners (Brokers) Pty. Ltd., an insurance broker in Victoria, Australia.
On January 19, 2018, the Company completed the transaction to acquire substantially all of the assets of The Burchfield Group, a provider in pharmacy benefit consulting, auditing, and health plan compliance services based in the United States.
Completed Dispositions
The Company completed one disposition during the three months ended March 31, 2019. The Company completed no dispositions during the three months ended March 31, 2018.
Total pretax gain, net of losses, for the three months ended March 31, 2019 was $5 million. Total pretax losses recognized for the three months ended March 31, 2018 was $1 million. Gains and losses recognized as a result of a disposition are included in Other income (expense) in the Condensed Consolidated Statements of Income.
v3.19.1
Goodwill and Other Intangible Assets
3 Months Ended
Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
The changes in the net carrying amount of goodwill for the three months ended March 31, 2019 are as follows (in millions):
Balance as of December 31, 2018
$
8,171

Goodwill related to current year acquisitions
15

Goodwill related to disposals
(1
)
Goodwill related to prior year acquisitions
1

Foreign currency translation and other
33

Balance as of March 31, 2019
$
8,219


Other intangible assets by asset class are as follows (in millions):
 
March 31, 2019
 
December 31, 2018
 
Gross Carrying Amount
 
Accumulated
Amortization and Impairment
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated
Amortization and Impairment
 
Net Carrying Amount
Customer related and contract based
$
2,282

 
$
1,501

 
$
781

 
$
2,240

 
$
1,444

 
$
796

Tradenames
1,030

 
795

 
235

 
1,027

 
740

 
287

Technology and other
391

 
330

 
61

 
391

 
325

 
66

Total
$
3,703

 
$
2,626

 
$
1,077

 
$
3,658

 
$
2,509

 
$
1,149


The estimated future amortization for finite lived intangible assets as of March 31, 2019 is as follows (in millions):
Remainder of 2019
$
311

2020
217

2021
128

2022
85

2023
73

2024
56

Thereafter
207

Total
$
1,077

v3.19.1
Debt
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Debt Debt
Notes
On December 3, 2018, Aon Corporation issued $350 million 4.50% Senior Notes due December 2028. The Company used the net proceeds of the offering to pay down a portion of outstanding commercial paper and for general corporate purposes.
On March 8, 2018, the Company’s CAD 375 million ($291 million at March 8, 2018 exchange rates) 4.76% Senior Note due March 2018 issued by a Canadian subsidiary of Aon Corporation matured and was repaid in full.
Revolving Credit Facilities
As of March 31, 2019, Aon plc had two primary committed credit facilities outstanding: its $900 million multi-currency United States (“U.S.”) credit facility expiring in February 2022 and its $400 million multi-currency U.S. credit facility expiring in October 2022 (collectively, the “2022 Facilities”).
Each of these facilities includes customary representations, warranties and covenants, including financial covenants that require Aon to maintain specified ratios of adjusted consolidated earnings before interest, taxes, depreciation, and amortization (“EBITDA”) to consolidated interest expense and consolidated debt to adjusted consolidated EBITDA, in each case, tested quarterly. At March 31, 2019, Aon did not have borrowings under the 2022 Facilities, and was in compliance with the financial covenants and all other covenants contained therein during the rolling twelve months ended March 31, 2019.
Commercial Paper
Aon Corporation, a wholly owned subsidiary of Aon plc, has established a U.S. commercial paper program and Aon plc has established a European multi-currency commercial paper program (collectively, the “CP Programs”). Commercial paper may be issued in aggregate principal amounts of up to $600 million under the U.S. program and €525 million under the European program, not to exceed the amount of the Company’s committed credit, which was $1.3 billion at March 31, 2019. The U.S. commercial paper program is fully and unconditionally guaranteed by Aon plc and the European multi-currency commercial paper program is fully and unconditionally guaranteed by Aon Corporation.
Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Company’s Condensed Consolidated Statements of Financial Position, is as follows (in millions):
As of
 
March 31, 2019
 
December 31, 2018
Commercial paper outstanding
 
$
423

 
$
250


The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages):
 
 
Three Months Ended March 31
 
 
2019
 
2018
Weighted average commercial paper outstanding
 
$
323

 
$
125

Weighted average interest rate of commercial paper outstanding
 
0.49
%
 
(0.50
)%
v3.19.1
Income Taxes
3 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The effective tax rate on net income from continuing operations was 15.7% for the three months ended March 31, 2019. The effective tax rate on net income from continuing operations was 15.9% for the three months ended March 31, 2018.
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. For the three months ended March 31, 2018, the tax rate was primarily driven by the geographical distribution of income and certain discrete items including the impact of share-based payments and a decrease in uncertain tax positions related to the statute of limitations expiration following an audit.
v3.19.1
Shareholders' Equity
3 Months Ended
Mar. 31, 2019
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
Ordinary Shares
Aon has a share repurchase program authorized by the Company’s Board of Directors (the “Repurchase Program”). The Repurchase Program was established in April 2012 with $5.0 billion in authorized repurchases, and was increased by $5.0 billion in authorized repurchases in each of November 2014 and February 2017 for a total of $15.0 billion in repurchase authorizations.
Under the Repurchase Program, Class A Ordinary Shares may be repurchased through the open market or in privately negotiated transactions, from time to time, based on prevailing market conditions, and will be funded from available capital.
The following table summarizes the Company’s Share Repurchase activity (in millions, except per share data):
 
Three Months Ended March 31
 
2019
 
2018
Shares repurchased
0.6

 
3.9

Average price per share
$
161.16

 
$
140.94

Costs recorded to retained earnings:

 

Total repurchase cost
$
100

 
$
550

Additional associated costs
1

 
3

Total costs recorded to retained earnings
$
101

 
$
553


At March 31, 2019, the remaining authorized amount for share repurchase under the Repurchase Program was $3.9 billion. Under the Repurchase Program, the Company has repurchased a total of 118.9 million shares for an aggregate cost of approximately $11.1 billion.
Net Income Per Share
Weighted average ordinary shares outstanding are as follows (in millions):
 
Three Months Ended March 31
 
2019
 
2018
Basic weighted average ordinary shares outstanding
242.2

 
248.5

Dilutive effect of potentially issuable shares
1.5

 
1.7

Diluted weighted average ordinary shares outstanding
243.7

 
250.2


Potentially issuable shares are not included in the computation of diluted net income per share if its inclusion would be antidilutive. There were 0.1 million shares excluded from the calculation for the three months ended March 31, 2019 and March 31, 2018.
Accumulated Other Comprehensive Loss
Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions):
 
Change in Fair Value of Financial Instruments (1) 
 
Foreign Currency Translation Adjustments
 
Postretirement Benefit Obligation (2)
 
Total
Balance at December 31, 2018
$
(15
)
 
$
(1,319
)
 
$
(2,575
)
 
$
(3,909
)
Other comprehensive income 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

 

 
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. Refer to Note 15 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity.
(2)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense).
v3.19.1
Employee Benefits
3 Months Ended
Mar. 31, 2019
Retirement Benefits [Abstract]  
Employee Benefits Employee Benefits
The following table provides the components of the net periodic (benefit) cost recognized in the Condensed Consolidated Statements of Income for Aon’s material U.K., U.S., and other significant international pension plans 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
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Interest cost
$
28

 
$
29

 
$
27

 
$
25

 
$
7

 
$
7

Expected return on plan assets, net of administration expenses
(49
)
 
(51
)
 
(34
)
 
(36
)
 
(10
)
 
(12
)
Amortization of prior-service cost
1

 

 
1

 

 

 

Amortization of net actuarial loss
7

 
8

 
13

 
15

 
3

 
3

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

 
4

 

 
(2
)
Loss on pension settlement

 
7

 

 

 

 

Total net periodic (benefit) cost
$
(13
)

$
(7
)

$
7


$
4


$


$
(2
)

In March 2017, the Company approved a plan to offer a voluntary one-time lump sum payment option to certain eligible employees of the Company’s U.K. pension plans that, if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer closed during 2018. For the three months ended March 31, 2018, lump sum payments from plan assets of £48 million ($68 million using March 31, 2018 exchange rates) were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.K. pension plan during the first quarter of 2018, which in aggregate resulted in a reduction to the projected benefit obligation of £44 million ($63 million using March 31, 2018 exchange rates), as well as a non-cash settlement charge of £5 million ($7 million using average March 31, 2018 exchange rates) in the first quarter of 2018.
Contributions
The Company expects to make cash contributions of approximately $80 million, $46 million, and $19 million, based on exchange rates as of December 31, 2018, to its significant U.K., U.S., and other significant international pension plans, respectively, during 2019. During the three months ended March 31, 2019, cash contributions of $23 million, $17 million, and $7 million were made to the Company’s significant U.K., U.S., and other significant international pension plans, respectively.
During the three months ended March 31, 2018, cash contributions of $23 million, $17 million, and $8 million were made to the Company’s significant U.K., U.S., and other significant international pension plans, respectively.
v3.19.1
Share-Based Compensation Plans
3 Months Ended
Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [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
 
2019
 
2018
Restricted share units (“RSUs”)
$
63

 
$
58

Performance share awards (“PSAs”)
23

 
16

Employee share purchase plans
3

 
3

Total share-based compensation expense 
$
89

 
$
77


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

 
$
120

 
4,849

 
$
104

Granted
517

 
$
170

 
505

 
$
144

Vested
(677
)
 
$
117

 
(806
)
 
$
101

Forfeited
(41
)
 
$
121

 
(63
)
 
$
105

Non-vested at end of period
4,007

 
$
127

 
4,485

 
$
109


(1)
Represents per share weighted average fair value of award at date of grant.
Unamortized deferred compensation expense amounted to $366 million as of March 31, 2019, with a remaining weighted average amortization period of approximately 2 years.
Performance Share Awards
The vesting of PSAs is contingent upon meeting a cumulative level of earnings per share related performance over a three-year period. The actual issue of shares may range from 0-200% of the target number of PSAs granted, based on the terms of the plan and level of achievement of the related performance target. The grant date fair value of PSAs is based upon the market price of Aon plc ordinary shares at the date of grant. The performance conditions are not considered in the determination of the grant date fair value for these awards. Compensation expense is recognized over the performance period based on management’s estimate of the number of units expected to vest. Management evaluates its estimate of the actual number of shares expected to be issued at the end of the programs on a quarterly basis. The cumulative effect of the change in estimate is recognized in the period of change as an adjustment to Compensation and benefits in the Condensed Consolidated Statements of Income, if necessary. Dividend equivalents are not paid on PSAs.
The following table summarizes the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the three months ended March 31, 2019 and the years ended December 31, 2018 and 2017, respectively (shares in thousands and dollars in millions, except fair value):
 
March 31,
2019
 
December 31,
2018
 
December 31,
2017
Target PSAs granted during period
467

 
564

 
548

Weighted average fair value per share at date of grant
$
165

 
$
134

 
$
114

Number of shares that would be issued based on current performance levels
467

 
838

 
1,067

Unamortized expense, based on current performance levels
$
77

 
$
70

 
$
32

v3.19.1
Derivatives and Hedging
3 Months Ended
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Derivatives and Hedging
The Company is exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, the Company enters into various derivative instruments that reduce these risks by creating offsetting exposures.  The Company does not enter into derivative transactions for trading or speculative purposes.
Foreign Exchange Risk Management
The Company is exposed to foreign exchange risk when it earns revenues, pays expenses, enters into monetary intercompany transfers or other transactions denominated in a currency that differs from its functional currency.  The Company uses foreign exchange derivatives, typically forward contracts, options and cross currency swaps, to reduce its overall exposure to the effects of currency fluctuations on cash flows.  These exposures are hedged, on average, for less than 2 years. These derivatives are accounted for as hedges, and changes in fair value are recorded each period in Other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income.
The Company also uses foreign exchange derivatives, typically forward contracts and options, to economically hedge the currency exposure of the Company’s global liquidity profile, including monetary assets or liabilities that are denominated in a non-functional currency of an entity, typically on a rolling 30-day basis, but may be for up to 1 year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income (expense) in the Condensed Consolidated Statements of Income.
The notional and fair values of derivative instruments are as follows (in millions):
 
Notional Amount
 
Net Amount of Derivative Assets
 Presented in the Statements of Financial Position (1)
 
Net Amount of Derivative Liabilities
 Presented in the Statements of Financial Position (2)
 
March 31,
2019
 
December 31,
2018
 
March 31,
2019
 
December 31,
2018
 
March 31,
2019
 
December 31,
2018
Foreign exchange contracts
 

 
 

 
 

 
 

 
 

 
 

Accounted for as hedges
$
565

 
$
646

 
$
20

 
$
17

 
$
1

 
$
2

Not accounted for as hedges (3)
321

 
269

 

 
1

 

 
6

Total
$
886

 
$
915

 
$
20

 
$
18

 
$
1

 
$
8

(1)
Included within Other current assets ($6 million at March 31, 2019 and $3 million at December 31, 2018) or Other non-current assets ($14 million at March 31, 2019 and $15 million at December 31, 2018).
(2)
Included within Other current liabilities ($1 million at March 31, 2019 and $5 million at December 31, 2018) or Other non-current liabilities ($3 million at December 31, 2018).
(3)
These contracts typically are for 30 day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date.
The amounts of derivative gains (losses) recognized in the Financial Statements are as follows (in millions):
 
 
Three Months Ended
 
 
March 31, 2019
 
March 31, 2018
Gain (Loss) recognized in Accumulated other comprehensive loss
 
$
4

 
$
14


The amounts of derivative gains (losses) reclassified from Accumulated other comprehensive loss into the Condensed Consolidated Statements of Income are as follows (in millions):
 
 
Three Months Ended
 
 
March 31, 2019
 
March 31, 2018
Compensation and benefits
 
$

 
$
1

Other general expenses
 

 
(1
)
Interest expense
 
(1
)
 
(1
)
Revenue (1)
 
(4
)
 

Other income (expense) (1)
 

 
(3
)
Total
 
$
(5
)
 
$
(4
)

(1)
With the adoption of new derivative guidance in 2019, gains (losses) on derivatives accounted for as hedges are recognized in Total revenue in the Company’s Condensed Consolidated Statements of Income rather than Other income (expense). Refer to Note 2 “Accounting Principles and Practices” for additional details.
The Company estimates that approximately $10 million of pretax losses currently included within Accumulated other comprehensive loss will be reclassified in to earnings in the next twelve months.
During the three months ended March 31, 2019, the Company recorded a gain of $5 million in Other income (expense) for foreign exchange derivatives not accounted for as hedges. During the three months ended March 31, 2018, the Company recorded a gain of $9 million in Other income (expense) for foreign exchange derivatives not accounted for as hedges.
Net Investments in Foreign Operations Risk Management
The Company uses non-derivative financial instruments to protect the value of its investments in a number of foreign subsidiaries. The Company has designated a portion of its euro-denominated commercial paper issuances as a non-derivative hedge of the foreign currency exposure of a net investment in its European operations. The change in fair value of the designated portion of the euro-denominated commercial paper due to changes in foreign currency exchange rates is recorded in Foreign currency translation adjustment, a component of Accumulated other comprehensive loss, to the extent it is effective as a hedge. The foreign currency translation adjustment of the hedged net investments is also recorded in Accumulated other comprehensive loss. Ineffective portions of net investment hedges, if any, are reclassified from Accumulated other comprehensive loss into earnings during the period of change.
As of March 31, 2019, the Company has €220 million ($248 million at March 31, 2019 exchange rates) of outstanding euro-denominated commercial paper designated as a hedge of the foreign currency exposure of its net investment in its European operations. As of March 31, 2019, the unrealized gain recognized in Accumulated other comprehensive loss related to the net investment non derivative hedging instrument was $23 million.
The Company did not reclassify any deferred gains or losses related to net investment hedges from Accumulated other comprehensive loss to earnings during the three months ended March 31, 2019 and 2018.
v3.19.1
Fair Value Measurements and Financial Instruments
3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Financial Instruments Fair Value Measurements and Financial Instruments
Accounting standards establish a three tier fair value hierarchy that prioritizes the inputs used in measuring fair values as follows:
Level 1 — observable inputs such as quoted prices for identical assets in active markets;
Level 2 — inputs other than quoted prices for identical assets in active markets, that are observable either directly or indirectly; and
Level 3 — unobservable inputs in which there is little or no market data which requires the use of valuation techniques and the development of assumptions.
The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments:
Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews treasury and government money market funds to obtain reasonable assurance that the fund net asset value is $1 per share, and reviews the floating net asset value of institutional prime money market funds for reasonableness. 
Equity investments consist of domestic and international equity securities and equity derivatives valued using the closing stock price on a national securities exchange. Over the counter equity derivatives are valued using observable inputs such as underlying prices of the underlying security and volatility. On a sample basis the Company reviews the listing of Level 1 equity securities in the portfolio and agrees the closing stock prices to a national securities exchange, and independently verifies the observable inputs for Level 2 equity derivatives and securities.
Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves, and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using discounted cash flow models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains an understanding of the models, inputs, and assumptions used in developing prices provided by its vendors through discussions with the fund managers. The Company independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on the Company’s guidelines, it is then reviewed by management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and historically are not material to the fair value estimates used in the Financial Statements.
Derivatives are carried at fair value, based upon industry standard valuation techniques that use, where possible, current market-based or independently sourced pricing inputs, such as interest rates, currency exchange rates, or implied volatilities.
Debt is carried at outstanding principal balance, less any unamortized issuance costs, discount or premium. Fair value is based on quoted market prices or estimates using discounted cash flow analyses based on current borrowing rates for similar types of borrowing arrangements.
The following tables present the categorization of the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018 (in millions):
 
 
 
Fair Value Measurements Using
 
Balance at
March 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)
$
1,979

 
$
1,979

 
$

 
$

Other investments
 

 
 

 
 

 
 

Government bonds
$
1

 
$

 
$
1

 
$

Equity investments
$
2

 
$

 
$
2

 
$

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
25

 
$

 
$
25

 
$

Liabilities
 

 
 

 
 

 
 

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
6

 
$

 
$
6

 
$

(1)
Included within Fiduciary assets or Short-term investments in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity.
(2)
Refer to Note 15 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity.
 
 
 
Fair Value Measurements Using
 
Balance at December 31, 2018
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
Assets
 

 
 

 
 

 
 

Money market funds (1)
$
1,759

 
$
1,759

 
$

 
$

Other investments
 

 
 

 
 

 
 

Government bonds
$
1

 
$

 
$
1

 
$

Equity investments
$
2

 
$

 
$
2

 
$

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
21

 
$

 
$
21

 
$

Liabilities
 

 
 

 
 

 
 

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
12

 
$

 
$
12

 
$

(1)
Included within Fiduciary assets or Short-term investments in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. 
(2)
Refer to Note 15 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. 
There were no transfers of assets or liabilities between fair value hierarchy levels in either the three months ended March 31, 2019 or 2018. The Company recognized no realized or unrealized gains or losses in the Condensed Consolidated Statements of Income during either the three months ended March 31, 2019 or 2018, related to assets and liabilities measured at fair value using unobservable inputs.
The fair value of debt is classified as Level 2 of the fair value hierarchy. The following table provides the carrying value and fair value for the Company’s term debt (in millions):
 
March 31, 2019
 
December 31, 2018
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt
$
5,990

 
$
6,344

 
$
5,993

 
$
6,159

v3.19.1
Claims, Lawsuits and Other Contingencies
3 Months Ended
Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Claims, Lawsuits and Other Contingencies Claims, Lawsuits, and Other Contingencies
Legal
Aon and its subsidiaries are subject to numerous claims, tax assessments, lawsuits and proceedings that arise in the ordinary course of business, which frequently include errors and omissions (“E&O”) claims. The damages claimed in these matters are or may be substantial, including, in many instances, claims for punitive, treble or extraordinary damages. While Aon maintains meaningful E&O insurance and other insurance programs to provide protection against certain losses that arise in such matters, Aon has exhausted or materially depleted its coverage under some of the policies that protect the Company and, consequently, is self-insured or materially self-insured for some claims. Accruals for these exposures, and related insurance receivables, when applicable, are included in the Condensed Consolidated Statements of Financial Position and have been recognized in Other general expenses in the Condensed Consolidated Statements of Income to the extent that losses are deemed probable and are reasonably estimable. These amounts are adjusted from time to time as developments warrant. Matters that are not probable and reasonably estimable are not accrued for in the financial statements.
The Company has included in the current matters described below certain matters in which (1) loss is probable, (2) loss is reasonably possible, that is, more than remote but not probable, or (3) there exists the reasonable possibility of loss greater than the accrued amount. In addition, the Company may from time to time disclose matters for which the probability of loss could be remote but the claim amounts associated with such matters are potentially significant. The reasonably possible range of loss for the matters described below for which loss is estimable, in excess of amounts that are deemed probable and estimable and therefore already accrued, is estimated to be between $0 and $0.1 billion, exclusive of any insurance coverage. These estimates are based on available information as of the date of this filing. As available information changes, the matters for which Aon is able to estimate may change, and the estimates themselves may change. In addition, many estimates involve significant judgment and uncertainty. For example, at the time of making an estimate, Aon may only have limited information about the facts underlying the claim, and predictions and assumptions about future court rulings and outcomes may prove to be inaccurate. Although management at present believes that the ultimate outcome of all matters described below, individually or in the aggregate, will not have a material adverse effect on the consolidated financial position of Aon, legal proceedings are subject to inherent uncertainties and unfavorable rulings or other events. Unfavorable resolutions could include substantial monetary or punitive damages imposed on Aon or its subsidiaries. If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected.
Current Matters
A pensions consulting and administration subsidiary of Aon provided advisory services to the Trustees of the Gleeds pension fund in the United Kingdom and, on occasion, to the relevant employer of the fund.  In April 2014, the High Court, Chancery Division, London found that certain governing documents of the fund that sought to alter the fund’s benefit structure and that had been drafted by Aon were procedurally defective and therefore invalid.  No lawsuit naming Aon as a party was filed, although a tolling agreement was entered.  The High Court decision says that the additional liabilities in the pension fund resulting from the alleged defect in governing documents amount to approximately £45 million ($59 million at March 31, 2019 exchange rates). In December 2014, the Court of Appeal granted the employer leave to appeal the High Court decision. At a hearing in October 2016, the Court of Appeal approved a settlement of the pending litigation. On October 31, 2016, the fund’s trustees and employer sued Aon in the High Court, Chancery Division, London, alleging negligence and breach of duty in relation to the governing documents. The proceedings were served on Aon on December 20, 2016. The claimants seek damages of approximately £70 million ($92 million at March 31, 2019 exchange rates). In February 2018, the claimants instructed new lawyers and added their previous lawyers as defendants to the Aon lawsuit. Claimants have alleged that the previous lawyers were responsible for some of the losses sought from Aon because the lawyers gave negligent legal advice during the course of the High Court and Court of Appeal proceedings. Aon believes that it has meritorious defenses and intends to vigorously defend itself against this claim.
On June 29, 2015, Lyttelton Port Company Limited (“LPC”) sued Aon New Zealand in the Christchurch Registry of the High Court of New Zealand. LPC alleges, among other things, that Aon was negligent and in breach of contract in arranging LPC’s property insurance program for the period covering June 30, 2010 to June 30, 2011. LPC contends that acts and omissions by Aon caused LPC to recover less than it otherwise would have from insurers for losses suffered in the 2010 and 2011 Canterbury earthquakes. LPC claims damages of approximately NZD 184 million ($127 million at March 31, 2019 exchange rates) plus interest and costs. In April 2019, the case was settled with no admission of liability on the part of Aon. The terms of this settlement did not have a significant impact on Aon’s results of operations or financial condition.
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 ($365 million at March 31, 2019 exchange rates) plus interest and costs. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims.
A retail insurance brokerage subsidiary of Aon was sued on September 6, 2018 in the United States District Court for the Southern District of New York by a client, Pilkington North America, Inc., that sustained damage from a tornado to its Ottawa, Illinois property. The lawsuit seeks between $45 million and $85 million in property and business interruption damages from either its insurer or Aon. The insurer contends that insurance proceeds were limited to $15 million in coverage by a windstorm sub-limit purportedly contained in the policy procured by Aon for Pilkington. The insurer therefore has tendered $15 million to Pilkington and denied coverage for the remainder of the loss. Pilkington sued the insurer and Aon seeking full coverage for the loss from the insurer or, in the alternative, seeking the same damages against Aon on various theories of professional liability if the court finds that the $15 million sub-limit applies to the claim. Aon believes it has meritorious defenses and intends to vigorously defend itself against these claims.    
In April 2017, the FCA announced an investigation relating to suspected competition law breaches in the aviation and aerospace broking industry, which, for Aon in 2016, represented less than $100 million in global revenue. The European Commission has now assumed jurisdiction over the investigation in place of the FCA. Other antitrust agencies outside the European Union are also conducting formal or informal investigations regarding these matters. Aon intends to work diligently with all antitrust agencies concerned to ensure they can carry out their work as efficiently as possible. At this time, in light of the uncertainties and many variables involved, Aon cannot estimate the ultimate impact on our company from these investigations or any related private litigation, nor any damages, penalties, or fines related to them. There can be no assurance that the ultimate resolution of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity.
Guarantees and Indemnifications
The Company provides a variety of guarantees and indemnifications to its customers and others. The maximum potential amount of future payments represents the notional amounts that could become payable under the guarantees and indemnifications if there were a total default by the guaranteed parties, without consideration of possible recoveries under recourse provisions or other methods. These amounts may bear no relationship to the expected future payments, if any, for these guarantees and indemnifications. Any anticipated amounts payable are included in the Company’s Financial Statements, and are recorded at fair value.
The Company expects that, as prudent business interests dictate, additional guarantees and indemnifications may be issued from time to time.
Redomestication
In connection with the Redomestication, the Company on April 2, 2012 entered into various agreements pursuant to which it agreed to guarantee the obligations of its subsidiaries arising under issued and outstanding debt securities. Those agreements included the (1) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc, and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) (amending and restating the Indenture, dated as of September 10, 2010, between Aon Corporation and the Trustee), (2) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and the Trustee (amending and restating the Indenture, dated as of December 16, 2002, between Aon Corporation and the Trustee), and (3) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and the Trustee (amending and restating the Indenture, dated as of January 13, 1997, as supplemented by the First Supplemental Indenture, dated as of January 13, 1997).
Sale of the Divested Business
In connection with the sale of the Divested Business, the Company guaranteed future operating lease commitments related to certain facilities assumed by the Buyer. The Company is obligated to perform under the guarantees if the Divested Business defaults on such leases at any time during the remainder of the lease agreements, which expire on various dates through 2024. As of March 31, 2019, the undiscounted maximum potential future payments under the lease guarantee is $81 million, with an estimated fair value of $16 million. No cash payments were made in connection to the lease commitments during the three months ended March 31, 2019.
Additionally, the Company is subject to performance guarantee requirements under certain client arrangements that were assumed by the Buyer. Should the Divested Business fail to perform as required by the terms of the arrangements, the Company would be required to fulfill the remaining contract terms, which expire on various dates through 2023. As of March 31, 2019, the undiscounted maximum potential future payments under the performance guarantees were $179 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, 2019.
Letters of Credit
Aon has entered into a number of arrangements whereby the Company’s performance on certain obligations is guaranteed by a third party through the issuance of letters of credit (“LOCs”). The Company had total LOCs outstanding of approximately $92 million at March 31, 2019, compared to $83 million at December 31, 2018. These LOCs cover the beneficiaries related to certain of Aon’s U.S. and Canadian non-qualified pension plan schemes and secure deductible retentions for Aon’s own workers compensation program. The Company has also obtained LOCs to cover contingent payments for taxes and other business obligations to third parties, and other guarantees for miscellaneous purposes at its international subsidiaries.
Premium Payments
The Company has certain contractual contingent guarantees for premium payments owed by clients to certain insurance companies. The maximum exposure with respect to such contractual contingent guarantees was approximately $76 million at March 31, 2019 compared to $103 million at December 31, 2018.
v3.19.1
Segment Information
3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company operates as one segment that includes all of Aon’s continuing operations, which as a global professional services firm provides advice and solutions to clients focused on risk, retirement, and health through five revenue lines which make up its principal products and services. The Chief Operating Decision Maker (the “CODM”) assesses the performance of the Company and allocates resources based on one segment: Aon United.
The Company’s reportable operating segment has been determined using a management approach, which is consistent with the basis and manner in which Aon’s CODM uses financial information for the purposes of allocating resources and evaluating performance. The CODM assesses performance and allocates resources based on total Aon results against its key four metrics, including organic revenue growth, expense discipline, and collaborative behaviors that maximize value for Aon and its shareholders, regardless of which revenue line it benefits.
As Aon operates as one segment, segment profit or loss is consistent with consolidated reporting as disclosed on the Condensed Consolidated Statements of Income. Refer to Note 3 “Revenue from Contracts with Customers” for further information on revenue by principal service line.
v3.19.1
Guarantee of Registered Securities
3 Months Ended
Mar. 31, 2019
Guarantee of Registered Securities [Abstract]  
Guarantee of Registered Securities Guarantee of Registered Securities
As described in Note 17 “Claims, Lawsuits, and Other Contingencies,” in connection with the Redomestication, Aon plc entered into various agreements pursuant to which it agreed to guarantee the obligations of Aon Corporation arising under issued and outstanding debt securities, including the 5.00% Notes due September 2020, the 8.205% Notes due January 2027, and the 6.25% Notes due September 2040 (collectively, the “Aon Corporation Notes”). Additionally, Aon plc has guaranteed the obligations of Aon Corporation arising under the 4.50% Senior Notes due 2028. Aon Corporation is a 100% indirectly owned subsidiary of Aon plc. All guarantees of Aon plc are full and unconditional. There are no other subsidiaries of Aon plc that are guarantors of the Aon Corporation Notes.
In addition, Aon Corporation entered into an agreement pursuant to which it guaranteed the obligations of Aon plc arising under the 4.25% Notes due 2042 exchanged for Aon Corporation’s outstanding 8.205% Notes due January 2027, and has also guaranteed the obligations of Aon plc arising under the 4.45% Notes due 2043, the 4.00% Notes due November 2023, the 2.875% Notes due May 2026, the 3.50% Notes due June 2024, the 4.60% Notes due June 2044, the 4.75% Notes due May 2045, the 2.80% Notes due March 2021, and the 3.875% Notes due December 2025 (collectively, the “Aon plc Notes”). In each case, the guarantee of Aon Corporation is full and unconditional. There are no subsidiaries of Aon plc, other than Aon Corporation, that are guarantors of the Aon plc Notes. As a result of the existence of these guarantees, the Company has elected to present the financial information set forth in this footnote in accordance with Rule 3-10 of Regulation S-X.
In the forth quarter of 2018, Aon plc obtained direct ownership in two subsidiaries that were previously indirectly owned by Aon Corporation. In the first quarter of 2019, Aon Corporation obtained indirect ownership of subsidiaries that were previously indirectly owned by Aon plc. The financial results of both subsidiaries are included in the Other Non-Guarantor Subsidiaries column of the Condensed Consolidating Financial Statements. The Company has retrospectively reflected the impact of these transactions on the Condensed Consolidating Statements of Income and Condensed Consolidating Statements of Comprehensive Income for the periods ended March 31, 2018 and the Condensed Consolidated Statement of Financial Position as of December 31, 2018.
The following tables set forth Condensed Consolidating Statements of Income and Condensed Consolidating Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018, Condensed Consolidating Statements of Financial Position as of March 31, 2019 and December 31, 2018, and Condensed Consolidating Statements of Cash Flows for the three months ended March 31, 2019 and 2018 in accordance with Rule 3-10 of Regulation S-X. The Condensed Consolidating Financial
Information includes the accounts of Aon plc, the accounts of Aon Corporation, and the combined accounts of the Other Non-Guarantor Subsidiaries. The Condensed Consolidating Financial Statements are presented in all periods as a merger under common control. The principal consolidating adjustments are to eliminate the investment in subsidiaries and intercompany balances and transactions.
Condensed Consolidating Statement of Income
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon plc
 
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 expenses (income)
 

 
(4
)
 
350

 

 
346

Total operating expenses
 
20

 
8

 
2,243

 

 
2,271

Operating income (loss)
 
(20
)
 
(8
)
 
900

 

 
872

Interest income
 

 
9

 

 
(7
)
 
2

Interest expense
 
(46
)
 
(28
)
 
(5
)
 
7

 
(72
)
Intercompany interest income (expense)
 
4

 
(116
)
 
112

 

 

Intercompany other income (expense)
 
31

 
(99
)
 
68

 

 

Other income (expense)
 
5

 
(11
)
 
8

 
(2
)
 

Income (loss) from continuing operations before income taxes
 
(26
)
 
(253
)
 
1,083

 
(2
)
 
802

Income tax expense (benefit)
 
(5
)
 
(42
)
 
173

 

 
126

Net income (loss) from continuing operations
 
(21
)
 
(211
)
 
910

 
(2
)
 
676

Net income from discontinued operations
 

 

 

 

 

Net income (loss) before equity in earnings of subsidiaries
 
(21
)
 
(211
)
 
910

 
(2
)
 
676

Equity in earnings of subsidiaries
 
682

 
724

 
513

 
(1,919
)
 

Net income
 
661

 
513

 
1,423

 
(1,921
)
 
676

Less: Net income attributable to noncontrolling interests
 

 

 
17

 

 
17

Net income attributable to Aon shareholders
 
$
661

 
$
513

 
$
1,406

 
$
(1,921
)
 
$
659

Condensed Consolidating Statement of Income
 
 
Three Months Ended March 31, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$
3,090

 
$

 
$
3,090

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
19

 
1

 
1,596

 

 
1,616

Information technology
 

 

 
115

 

 
115

Premises
 

 

 
93

 

 
93

Depreciation of fixed assets
 

 

 
39

 

 
39

Amortization and impairment of intangible assets
 

 

 
110

 

 
110

Other general expenses (income)
 
1

 

 
317

 

 
318

Total operating expenses
 
20

 
1

 
2,270

 

 
2,291

Operating income (loss)
 
(20
)
 
(1
)
 
820

 

 
799

Interest income
 

 
14

 

 
(10
)
 
4

Interest expense
 
(49
)
 
(24
)
 
(7
)
 
10

 
(70
)
Intercompany interest income (expense)
 
4

 
(128
)
 
124

 

 

Intercompany other income (expense)
 
(53
)
 
(5
)
 
58

 

 

Other income (expense)
 
(25
)
 
(6
)
 
13

 
3

 
(15
)
Income (loss) from continuing operations before income taxes
 
(143
)
 
(150
)
 
1,008

 
3

 
718

Income tax expense (benefit)
 
(16
)
 
(27
)
 
157

 

 
114

Net income (loss) from continuing operations
 
(127
)
 
(123
)
 
851

 
3

 
604

Net income from discontinued operations
 

 

 
6

 

 
6

Net income (loss) before equity in earnings of subsidiaries
 
(127
)
 
(123
)
 
857

 
3

 
610

Equity in earnings of subsidiaries
 
718

 
705

 
582

 
(2,005
)
 

Net income
 
591

 
582

 
1,439

 
(2,002
)
 
610

Less: Net income attributable to noncontrolling interests
 

 

 
16

 

 
16

Net income attributable to Aon shareholders
 
$
591

 
$
582

 
$
1,423

 
$
(2,002
)
 
$
594


Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
661

 
$
513

 
$
1,423

 
$
(1,921
)
 
$
676

Less: Net income attributable to noncontrolling interests
 

 

 
17

 

 
17

Net income attributable to Aon shareholders
 
661

 
513

 
1,406

 
(1,921
)
 
659

Other comprehensive income, 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
 

 
24

 
145

 
2

 
171

Equity in other comprehensive income of subsidiaries, net of tax
 
167

 
115

 
139

 
(421
)
 

Less: Other comprehensive income attributable to noncontrolling interests
 

 

 
2

 

 
2

Total other comprehensive income attributable to Aon shareholders
 
167

 
139

 
282

 
(419
)
 
169

Comprehensive income attributable to Aon shareholders
 
$
828

 
$
652

 
$
1,688

 
$
(2,340
)
 
$
828

Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended March 31, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
591

 
$
582

 
$
1,439

 
$
(2,002
)
 
$
610

Less: Net income attributable to noncontrolling interests
 

 

 
16

 

 
16

Net income attributable to Aon shareholders
 
591

 
582

 
1,423

 
(2,002
)
 
594

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

 
3

 
11

 

 
14

Foreign currency translation adjustments
 

 

 
250

 
(3
)
 
247

Postretirement benefit obligation
 

 
11

 
37

 

 
48

Total other comprehensive income
 

 
14

 
298

 
(3
)
 
309

Equity in other comprehensive income of subsidiaries, net of tax
 
309

 
285

 
299

 
(893
)
 

Less: Other comprehensive income attributable to noncontrolling interests
 

 

 
3

 

 
3

Total other comprehensive income attributable to Aon shareholders
 
309

 
299

 
594

 
(896
)
 
306

Comprehensive income attributable to Aon shareholders
 
$
900

 
$
881

 
$
2,017

 
$
(2,898
)
 
$
900


Condensed Consolidating Statement of Financial Position
 
 
As of March 31, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Assets
 
 

 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
746

 
$
563

 
$
(709
)
 
$
600

Short-term investments
 

 
47

 
87

 

 
134

Receivables, net
 

 

 
3,242

 

 
3,242

Fiduciary assets
 

 

 
11,412

 

 
11,412

Current intercompany receivables
 
166

 
2,277

 
12,154

 
(14,597
)
 

Other current assets
 

 
10

 
521

 

 
531

Total current assets
 
166

 
3,080

 
27,979

 
(15,306
)
 
15,919

Goodwill
 

 

 
8,219

 

 
8,219

Intangible assets, net
 

 

 
1,077

 

 
1,077

Fixed assets, net
 

 

 
606

 

 
606

Operating lease right-of-use assets
 

 
114

 
879

 

 
993

Deferred tax assets
 
94

 
488

 
150

 
(144
)
 
588

Prepaid pension
 

 
5

 
1,219

 

 
1,224

Non-current intercompany receivables
 
401

 
262

 
7,202

 
(7,865
)
 

Other non-current assets
 
1

 
30

 
478

 

 
509

Investment in subsidiary
 
9,283

 
19,919

 
(355
)
 
(28,847
)
 

Total assets
 
$
9,945

 
$
23,898

 
$
47,454

 
$
(52,162
)
 
$
29,135

 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 

 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$
351

 
$
75

 
$
1,762

 
$
(709
)
 
$
1,479

Short-term debt and current portion of long-term debt
 
248

 
175

 
3

 

 
426

Fiduciary liabilities
 

 

 
11,412

 

 
11,412

Current intercompany payables
 
339

 
13,283

 
975

 
(14,597
)
 

Other current liabilities
 

 
81

 
1,139

 

 
1,220

Total current liabilities
 
938

 
13,614

 
15,291

 
(15,306
)
 
14,537

Long-term debt
 
4,228

 
1,762

 

 

 
5,990

Non-current operating lease liabilities
 

 
153

 
825

 

 
978

Deferred tax liabilities
 

 

 
349

 
(144
)
 
205

Pension, other postretirement and postemployment liabilities
 

 
1,241

 
349

 

 
1,590

Non-current intercompany payables
 

 
7,368

 
497

 
(7,865
)
 

Other non-current liabilities
 
4

 
115

 
854

 

 
973

Total liabilities
 
5,170

 
24,253

 
18,165

 
(23,315
)
 
24,273

 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
4,775

 
(355
)
 
29,202

 
(28,847
)
 
4,775

Noncontrolling interests
 

 

 
87

 

 
87

Total equity
 
4,775

 
(355
)
 
29,289

 
(28,847
)
 
4,862

Total liabilities and equity
 
$
9,945

 
$
23,898

 
$
47,454

 
$
(52,162
)
 
$
29,135

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

 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
862

 
$
575

 
$
(781
)
 
$
656

Short-term investments
 

 
56

 
116

 

 
172

Receivables, net
 

 

 
2,760

 

 
2,760

Fiduciary assets
 

 

 
10,166

 

 
10,166

Current intercompany receivables
 
191

 
897

 
11,634

 
(12,722
)
 

Other current assets
 

 
16

 
602

 

 
618

Total current assets
 
191

 
1,831

 
25,853

 
(13,503
)
 
14,372

Goodwill
 

 

 
8,171

 

 
8,171

Intangible assets, net
 

 

 
1,149

 

 
1,149

Fixed assets, net
 

 

 
588

 

 
588

Operating lease right-of-use assets
 

 

 

 

 

Deferred tax assets
 
94

 
467

 
144

 
(144
)
 
561

Prepaid pension
 

 
5

 
1,128

 

 
1,133

Non-current intercompany receivables
 
403

 
261

 
7,225

 
(7,889
)
 

Other non-current assets
 
1

 
30

 
417

 

 
448

Investment in subsidiary
 
8,433

 
19,132

 
(882
)
 
(26,683
)
 

Total assets
 
$
9,122

 
$
21,726

 
$
43,793

 
$
(48,219
)
 
$
26,422

 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 

 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$
274

 
$
70

 
$
2,380

 
$
(781
)
 
$
1,943

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

 

 
1

 

 
251

Fiduciary liabilities
 

 

 
10,166

 

 
10,166

Current intercompany payables
 
213

 
11,875

 
634

 
(12,722
)
 

Other current liabilities
 

 
69

 
867

 

 
936

Total current liabilities
 
737

 
12,014

 
14,048

 
(13,503
)
 
13,296

Long-term debt
 
4,231

 
1,762

 

 

 
5,993

Non-current operating lease liabilities
 

 

 

 

 

Deferred tax liabilities
 

 

 
325

 
(144
)
 
181

Pension, other postretirement and postemployment liabilities
 

 
1,275

 
361

 

 
1,636

Non-current intercompany payables
 

 
7,390

 
499

 
(7,889
)
 

Other non-current liabilities
 
3

 
167

 
927

 

 
1,097

Total liabilities
 
4,971

 
22,608

 
16,160

 
(21,536
)
 
22,203

 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
4,151

 
(882
)
 
27,565

 
(26,683
)
 
4,151

Noncontrolling interests
 

 

 
68

 

 
68

Total equity
 
4,151

 
(882
)
 
27,633

 
(26,683
)
 
4,219

Total liabilities and equity
 
$
9,122

 
$
21,726

 
$
43,793

 
$
(48,219
)
 
$
26,422


Condensed Consolidating Statement of Cash Flows
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon plc
 
Aon
Corporation
 
Other
Non-Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$
(11
)
 
$
(34
)
 
$
179

 
$
(60
)
 
$
74

 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 
8

 
4

 

 
12

Payments for investments
 

 
(9
)
 
(5
)
 

 
(14
)
Net sales 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
 

 
8

 
(35
)
 

 
(27
)
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(100
)
 

 

 

 
(100
)
Advances from (to) affiliates
 
305

 
(265
)
 
(172
)
 
132

 

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

 
(90
)
 
(193
)
 
132

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

 

 
37

 

 
37

Net increase (decrease) in cash and cash equivalents
 

 
(116
)
 
(12
)
 
72

 
(56
)
Cash and cash equivalents at beginning of period
 

 
862

 
575

 
(781
)
 
656

Cash and cash equivalents at end of period
 
$

 
$
746

 
$
563

 
$
(709
)
 
$
600


Condensed Consolidating Statement of Cash Flows
 
 
Three Months Ended March 31, 2018
(millions)
 
Aon plc
 
Aon
Corporation
 
Other
Non-Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$
(21
)
 
$
626

 
$
277

 
$
(742
)
 
$
140

 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 
10

 
7

 

 
17

Payments for investments
 
(1
)
 
(5
)
 
(6
)
 
1

 
(11
)
Net sales of short-term investments - non-fiduciary
 

 
355

 
60

 

 
415

Acquisition of businesses, net of cash acquired
 

 

 
(29
)
 

 
(29
)
Sale of businesses, net of cash sold
 

 

 
(1
)
 

 
(1
)
Capital expenditures
 

 

 
(45
)
 

 
(45
)
Cash provided by (used for) investing activities
 
(1
)
 
360

 
(14
)
 
1

 
346

 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(569
)
 

 

 

 
(569
)
Advances from (to) affiliates
 
418

 
(933
)
 
(142
)
 
657

 

Issuance of shares for employee benefit plans
 
(109
)
 

 

 

 
(109
)
Issuance of debt
 
431

 
375

 
2

 

 
808

Repayment of debt
 
(61
)
 
(349
)
 
(294
)
 

 
(704
)
Cash dividends to shareholders
 
(89
)
 

 

 

 
(89
)
Noncontrolling interests and other financing activities
 

 

 

 

 

Cash provided by (used for) financing activities
 
21

 
(907
)
 
(434
)
 
657

 
(663
)
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 

 

 
18

 

 
18

Net increase (decrease) in cash and cash equivalents
 
(1
)
 
79

 
(153
)
 
(84
)
 
(159
)
Cash and cash equivalents at beginning of period
 
1

 
2,524

 
793

 
(2,562
)
 
756

Cash and cash equivalents at end of period
 
$

 
$
2,603

 
$
640

 
$
(2,646
)
 
$
597

v3.19.1
Lease Commitments
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Lease Commitments Lease Commitments
The Company leases office facilities, equipment, and automobiles under non-cancelable operating and finance leases. The Company’s lease obligations are primarily for the use of office space. The Company evaluates if a leasing arrangement exists upon inception of a contract. A contract contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Identified property, plant, or equipment may include a physically distinct portion of a larger asset, or a portion of an asset that represents substantially all of the capacity of the asset but is not physically distinct. In addition, the Company assesses whether a contract implicitly contains the right to control the use of a tangible asset that is not already owned. In addition, the Company subleases certain real estate properties to third parties, which consist of operating leases.
The Company’s leases expire at various dates and may contain renewal and expansion options. The Company’s leases do not typically contain termination options. The exercise of lease renewal and expansion options are at the Company’s sole discretion and are only included in the determination of the lease term if the Company is reasonably certain to exercise the option. The Company’s lease agreements typically do not contain any material residual value guarantees or restrictive covenants.
ROU assets and lease liabilities are based on the present value of the minimum lease payments over the lease term. As stated in Note 2 “Accounting Principles and Practices”, the Company has elected the practical expedient related to lease and non-lease components, as an accounting policy election for all asset classes, which allows a lessee to not separate non-lease from lease components and instead account for consideration received in a contract as a single lease component.
A portion of the Company’s lease agreements include variable lease payments which are not recorded in the initial measurement of the lease liability and ROU asset balances. For real estate arrangements, base rental payments may be escalated according to annual changes in the Consumer Price Index (“CPI”). The escalated rental payments based on the estimated CPI at the lease commencement date are included within minimum rental payments; however, changes in CPI are considered variable in nature and are recognized as variable lease costs in the period in which the obligation is incurred. Additionally, real estate lease agreements may include other variable payments related to operating expenses charged by the landlord based on actual expenditures. Information technology equipment agreements may include variable payments based on usage of the equipment.
The Company utilizes discount rates to determine the present value of the lease payments based on information available at the commencement date of the lease. The Company uses an incremental borrowing rate based on factors such as the lease term and the economic environment the lease exists to determine the appropriate present value of future lease payments as the rate implicit in the lease is not always readily available. When determining the incremental borrowing rate, the Company considers the rate of interest it would pay on a secured borrowing in an amount equal to the lease payments for the underlying asset under similar terms.
Operating leases are included in Operating lease right-of-use assets, Other current liabilities, and Non-current operating lease liabilities on the Condensed Consolidated Statements of Financial Position. Finance leases are included in Other non-current assets, Other current liabilities, and Other non-current liabilities on the Condensed Consolidated Statements of Financial Position.
The classification of operating and finance lease asset and liability balances within the Condensed Consolidated Statements of Financial Position is as follows (in millions):
As of
 
March 31,
2019
Assets
 
 
Operating lease assets
Operating lease right-of-use assets
$
993

Finance lease assets
Other non-current assets
70

Total lease assets
 
$
1,063

 
 
 
Liabilities
 
 
Current lease liabilities
 
 
   Operating
Other current liabilities
$
214

   Finance
Other current liabilities
27

Non-current lease liabilities
 
 
   Operating
Non-current operating lease liabilities
978

   Finance
Other non-current liabilities
50

Total lease liabilities
 
$
1,269




The components of lease costs are as follows (in millions):
 
Three Months Ended March 31, 2019
Operating lease cost
$
68

Finance lease cost
 
   Amortization of leased assets
7

   Interest on lease liabilities
1

Variable lease cost
6

Short-term lease cost (1)
1

Sublease income
(8
)
Net lease cost
$
75

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

Maturity analysis of operating and financing leases as of March 31, 2019 are as follows (in millions):
 
Operating
 
Finance
 
Less:
 
 
 
Leases
 
Leases
 
Subleases
 
Total
Remainder of 2019
$
206

 
$
26

 
$
(26
)
 
$
206

2020
244

 
27

 
(31
)
 
240

2021
217

 
23

 
(31
)
 
209

2022
192

 
2

 
(32
)
 
162

2023
138

 

 
(14
)
 
124

Thereafter
494

 

 
(4
)
 
490

Total undiscounted future minimum lease payments
$
1,491

 
$
78

 
$
(138
)
 
$
1,431

Less: Imputed interest
(161
)
 
(1
)
 

 
(162
)
Present value of lease liabilities
$
1,330

 
$
77

 
$
(138
)
 
$
1,269



Weighted average remaining lease term and discount rate related to operating and finance leases are as follows:
As of
March 31,
 2019
Weighted average remaining lease term (years)
 
   Operating leases
8.0

   Finance leases
2.7

Weighted average discount rate
 
   Operating leases
3.3
%
   Finance leases
2.5
%

Other cash and non-cash related activities are as follows (in millions):
 
Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
 
   Operating cash flows from operating leases
$
52

ROU assets obtained in exchange for new operating lease liabilities
$
26

Lease Commitments Lease Commitments
The Company leases office facilities, equipment, and automobiles under non-cancelable operating and finance leases. The Company’s lease obligations are primarily for the use of office space. The Company evaluates if a leasing arrangement exists upon inception of a contract. A contract contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Identified property, plant, or equipment may include a physically distinct portion of a larger asset, or a portion of an asset that represents substantially all of the capacity of the asset but is not physically distinct. In addition, the Company assesses whether a contract implicitly contains the right to control the use of a tangible asset that is not already owned. In addition, the Company subleases certain real estate properties to third parties, which consist of operating leases.
The Company’s leases expire at various dates and may contain renewal and expansion options. The Company’s leases do not typically contain termination options. The exercise of lease renewal and expansion options are at the Company’s sole discretion and are only included in the determination of the lease term if the Company is reasonably certain to exercise the option. The Company’s lease agreements typically do not contain any material residual value guarantees or restrictive covenants.
ROU assets and lease liabilities are based on the present value of the minimum lease payments over the lease term. As stated in Note 2 “Accounting Principles and Practices”, the Company has elected the practical expedient related to lease and non-lease components, as an accounting policy election for all asset classes, which allows a lessee to not separate non-lease from lease components and instead account for consideration received in a contract as a single lease component.
A portion of the Company’s lease agreements include variable lease payments which are not recorded in the initial measurement of the lease liability and ROU asset balances. For real estate arrangements, base rental payments may be escalated according to annual changes in the Consumer Price Index (“CPI”). The escalated rental payments based on the estimated CPI at the lease commencement date are included within minimum rental payments; however, changes in CPI are considered variable in nature and are recognized as variable lease costs in the period in which the obligation is incurred. Additionally, real estate lease agreements may include other variable payments related to operating expenses charged by the landlord based on actual expenditures. Information technology equipment agreements may include variable payments based on usage of the equipment.
The Company utilizes discount rates to determine the present value of the lease payments based on information available at the commencement date of the lease. The Company uses an incremental borrowing rate based on factors such as the lease term and the economic environment the lease exists to determine the appropriate present value of future lease payments as the rate implicit in the lease is not always readily available. When determining the incremental borrowing rate, the Company considers the rate of interest it would pay on a secured borrowing in an amount equal to the lease payments for the underlying asset under similar terms.
Operating leases are included in Operating lease right-of-use assets, Other current liabilities, and Non-current operating lease liabilities on the Condensed Consolidated Statements of Financial Position. Finance leases are included in Other non-current assets, Other current liabilities, and Other non-current liabilities on the Condensed Consolidated Statements of Financial Position.
The classification of operating and finance lease asset and liability balances within the Condensed Consolidated Statements of Financial Position is as follows (in millions):
As of
 
March 31,
2019
Assets
 
 
Operating lease assets
Operating lease right-of-use assets
$
993

Finance lease assets
Other non-current assets
70

Total lease assets
 
$
1,063

 
 
 
Liabilities
 
 
Current lease liabilities
 
 
   Operating
Other current liabilities
$
214

   Finance
Other current liabilities
27

Non-current lease liabilities
 
 
   Operating
Non-current operating lease liabilities
978

   Finance
Other non-current liabilities
50

Total lease liabilities
 
$
1,269




The components of lease costs are as follows (in millions):
 
Three Months Ended March 31, 2019
Operating lease cost
$
68

Finance lease cost
 
   Amortization of leased assets
7

   Interest on lease liabilities
1

Variable lease cost
6

Short-term lease cost (1)
1

Sublease income
(8
)
Net lease cost
$
75

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

Maturity analysis of operating and financing leases as of March 31, 2019 are as follows (in millions):
 
Operating
 
Finance
 
Less:
 
 
 
Leases
 
Leases
 
Subleases
 
Total
Remainder of 2019
$
206

 
$
26

 
$
(26
)
 
$
206

2020
244

 
27

 
(31
)
 
240

2021
217

 
23

 
(31
)
 
209

2022
192

 
2

 
(32
)
 
162

2023
138

 

 
(14
)
 
124

Thereafter
494

 

 
(4
)
 
490

Total undiscounted future minimum lease payments
$
1,491

 
$
78

 
$
(138
)
 
$
1,431

Less: Imputed interest
(161
)
 
(1
)
 

 
(162
)
Present value of lease liabilities
$
1,330

 
$
77

 
$
(138
)
 
$
1,269



Weighted average remaining lease term and discount rate related to operating and finance leases are as follows:
As of
March 31,
 2019
Weighted average remaining lease term (years)
 
   Operating leases
8.0

   Finance leases
2.7

Weighted average discount rate
 
   Operating leases
3.3
%
   Finance leases
2.5
%

Other cash and non-cash related activities are as follows (in millions):
 
Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
 
   Operating cash flows from operating leases
$
52

ROU assets obtained in exchange for new operating lease liabilities
$
26

v3.19.1
Accounting Principles and Practices (Policies)
3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements and Notes thereto (the “Financial Statements”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Financial Statements include the accounts of Aon plc and all of its controlled subsidiaries (“Aon” or the “Company”). Intercompany accounts and transactions have been eliminated. The Financial Statements include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows for all periods presented.Certain information and disclosures normally included in the Financial Statements prepared in accordance with U.S. GAAP have been condensed or omitted. 
Use of Estimates Use of EstimatesThe preparation of the accompanying Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the Financial Statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate.  Illiquid credit markets, volatile equity markets, and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the Financial Statements in future periods.
New Accounting Standards Adoption of New Accounting Standards
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
In February 2018, the FASB issued new accounting guidance related to reclassification of certain tax effects from accumulated other comprehensive income. The guidance allowed a reclassification from accumulated comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The guidance was effective for the Company in the first quarter of 2019. There was no impact on the net income of the Company as Aon did not elect to reclassify stranded tax effects on the Condensed Consolidated Statement of Financial Position. It is the Company’s policy to release income tax effects from accumulated other comprehensive loss using the portfolio approach.
Targeted Improvements to Accounting for Hedging Activities
In August 2017, the FASB issued new accounting guidance on targeted improvements to accounting for hedging activities. The new guidance amended its hedge accounting model to enable entities to better portray their risk management activities in the financial statements. The guidance eliminated the requirement to separately measure and report hedge ineffectiveness and required the effect of a hedging instrument to be presented in the same income statement line as the hedged item. The new guidance was effective for Aon in the first quarter of 2019 and the Company adopted it on a modified retrospective basis with no cumulative effect adjustment to accumulated other comprehensive income or corresponding adjustment to Retained earnings. Changes to the Condensed Consolidated Statement of Income and financial statement disclosures were applied prospectively. Under the new guidance, gains or losses on derivative hedges are recognized in revenue as compared to other income (expense) under the previous guidance. The adoption of this guidance had no impact on the net income of the Company.
Leases
In February 2016, the FASB issued a new accounting standard on leases, which requires lessees to recognize assets and liabilities for most leases. Under the new standard, a lessee is required to recognize in the Consolidated Statements of Financial Position, liabilities to make future lease payments and right-of-use (“ROU”) assets representing its right to use the underlying assets for the lease term. The recognition, measurement, timing, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP.
The Company adopted the new standard as of January 1, 2019, using the modified retrospective approach for all leases existing at, or entered into after, the period of adoption. Under this approach, prior periods were not restated. Rather, lease balances and other disclosures for prior periods were provided in the notes to the financial statements as previously reported, and the cumulative effect of initially applying the guidance was recognized in the Condensed Consolidated Statement of Financial Position.
The modified retrospective approach includes several optional practical expedients available that entities may elect to apply upon transition. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allows a lessee to carryforward their population of existing leases, the classification of each lease, as well as the treatment of initial direct costs as of the period of adoption. In addition, the Company elected the practical expedient related to lease and non-lease components, as an accounting policy election for all asset classes, which allows a lessee to not separate non-lease from lease components and instead account for consideration paid in a contract as a single lease component. Lastly, the Company did not elect the practical expedient related to hindsight analysis which allows a lessee to use hindsight in determining the lease term and in assessing impairment of the entity’s ROU assets.
The Company has made a policy election to not recognize ROU assets and lease liabilities that arise from leases with an initial term of twelve months or less on the Condensed Consolidated Statements of Financial Position. However, the Company will recognize these lease payments in the Condensed Consolidated Statements of Income on a straight-line basis over the lease term and variable lease payments in the period in which the obligation is incurred. The Company has chosen to apply this accounting policy across all classes of underlying assets. Additionally, upon adoption, the Company utilized a discount rate to determine the present value of the lease payments based on information available as of January 1, 2019.
Beginning January 1, 2019, operating ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at the commencement date. Operating leases in effect prior to January 1, 2019 were recognized at the present value of the remaining payments on the remaining lease term as of January 1, 2019. Upon adoption, the Company recognized ROU assets and lease liabilities of $1.1 billion and $1.3 billion, respectively. The standard had an insignificant impact on the Condensed Consolidated Statements of Income and no impact on the Condensed Consolidated Statements of Cash Flows. Refer to Note 20 “Lease Commitments” for further information including significant assumptions and judgments made.

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

 
$
1,021

 
$
1,021

Other non-current assets
$
448

 
$
78

 
$
526

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Other current liabilities
$
936

 
$
219

 
$
1,155

Non-current operating lease liabilities
$

 
$
1,014

 
$
1,014

Other non-current liabilities
$
1,097

 
$
(134
)
 
$
963


Accounting Standards Issued But Not Yet Adopted
Changes to the Disclosure Requirements for Defined Benefit Plans
In August 2018, the FASB issued new accounting guidance related to the disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. The guidance requires sponsors of these plans to provide additional disclosures, including weighted average interest rates used in the entity’s cash balance pension plans and a narrative description of reasons for any significant gains or losses impacting the benefit obligation for the period, and eliminates certain previous disclosure requirements. The guidance is effective for Aon in the first quarter of 2021 with early adoption permitted and will be applied retrospectively. The Company is currently evaluating the impact that the guidance will have on the Financial Statements and the period of adoption.
Simplifying the Test for Goodwill Impairment
In January 2017, the FASB issued new accounting guidance on simplifying the test for goodwill impairment. Currently the standard requires an entity to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. The new guidance removes Step 2. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. An entity will apply the new guidance on a prospective basis. The new guidance is effective for Aon in the first quarter of 2020 and early adoption is permitted. The Company is currently evaluating the period of adoption, but does not expect a significant impact on the Financial Statements.
Credit Losses
In June 2016, the FASB issued a new accounting standard on the measurement of credit losses on financial instruments. The new standard replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. An entity will apply the new standard through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the standard is effective. The standard is effective for Aon in the first quarter of 2020 and early adoption is permitted. The Company is currently evaluating the impact that the standard will have on its Financial Statements and the period of adoption.
Revenue from Contract with Customer Revenue from Contracts with Customers
Disaggregation of Revenue
The following table summarizes revenue from contracts with customers by principal service line (in millions):
 
 
Three Months Ended March 31
 
 
2019
 
2018
Commercial Risk Solutions
 
$
1,118

 
$
1,184

Reinsurance Solutions
 
788

 
742

Retirement Solutions
 
420

 
424

Health Solutions
 
486

 
451

Data & Analytic Services
 
336

 
294

Elimination
 
(5
)
 
(5
)
Total revenue
 
$
3,143

 
$
3,090


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
 
 
2019
 
2018
United States
 
$
1,161

 
$
1,116

Americas other than United States
 
226

 
237

United Kingdom
 
452

 
484

Europe, Middle East, & Africa other than United Kingdom
 
1,009

 
979

Asia Pacific
 
295

 
274

Total revenue
 
$
3,143

 
$
3,090



Contract Costs

An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):
As of
 
March 31,
2019
 
December 31,
2018
Balance at beginning of period
 
$
329

 
$
298

Additions
 
346

 
1,504

Amortization
 
(439
)
 
(1,465
)
Impairment
 

 

Foreign currency translation and other
 

 
(8
)
Balance at end of period
 
$
236

 
$
329



An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):
As of
 
March 31,
2019
 
December 31,
2018
Balance at beginning of period
 
$
156

 
$
145

Additions
 
9

 
53

Amortization
 
(11
)
 
(41
)
Impairment
 

 

Foreign currency translation and other
 
1

 
(1
)
Balance at end of period
 
$
155

 
$
156

Derivatives The Company is exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, the Company enters into various derivative instruments that reduce these risks by creating offsetting exposures.  The Company does not enter into derivative transactions for trading or speculative purposes.
Foreign Exchange Risk Management
The Company is exposed to foreign exchange risk when it earns revenues, pays expenses, enters into monetary intercompany transfers or other transactions denominated in a currency that differs from its functional currency.  The Company uses foreign exchange derivatives, typically forward contracts, options and cross currency swaps, to reduce its overall exposure to the effects of currency fluctuations on cash flows.  These exposures are hedged, on average, for less than 2 years. These derivatives are accounted for as hedges, and changes in fair value are recorded each period in Other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income.
The Company also uses foreign exchange derivatives, typically forward contracts and options, to economically hedge the currency exposure of the Company’s global liquidity profile, including monetary assets or liabilities that are denominated in a non-functional currency of an entity, typically on a rolling 30-day basis, but may be for up to 1 year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income (expense) in the Condensed Consolidated Statements of Income.
Fair Value Measurement The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments:
Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews treasury and government money market funds to obtain reasonable assurance that the fund net asset value is $1 per share, and reviews the floating net asset value of institutional prime money market funds for reasonableness. 
Equity investments consist of domestic and international equity securities and equity derivatives valued using the closing stock price on a national securities exchange. Over the counter equity derivatives are valued using observable inputs such as underlying prices of the underlying security and volatility. On a sample basis the Company reviews the listing of Level 1 equity securities in the portfolio and agrees the closing stock prices to a national securities exchange, and independently verifies the observable inputs for Level 2 equity derivatives and securities.
Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves, and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using discounted cash flow models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains an understanding of the models, inputs, and assumptions used in developing prices provided by its vendors through discussions with the fund managers. The Company independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on the Company’s guidelines, it is then reviewed by management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and historically are not material to the fair value estimates used in the Financial Statements.
Derivatives are carried at fair value, based upon industry standard valuation techniques that use, where possible, current market-based or independently sourced pricing inputs, such as interest rates, currency exchange rates, or implied volatilities.
Debt is carried at outstanding principal balance, less any unamortized issuance costs, discount or premium. Fair value is based on quoted market prices or estimates using discounted cash flow analyses based on current borrowing rates for similar types of borrowing arrangements.
v3.19.1
Accounting Principles and Practices Accounting Principles and Practices (Tables)
3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles As a result of applying the modified retrospective approach to adopt the new leasing standard, the following adjustments were made to the Condensed Consolidated Statements of Financial Position as of January 1, 2019 (in millions):
 
December 31,
2018
 
 
 
January 1,
2019
 
As Reported
 
Adjustments
 
As Adjusted
Assets
 
 
 
 
 
Operating lease right-of-use assets
$

 
$
1,021

 
$
1,021

Other non-current assets
$
448

 
$
78

 
$
526

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Other current liabilities
$
936

 
$
219

 
$
1,155

Non-current operating lease liabilities
$

 
$
1,014

 
$
1,014

Other non-current liabilities
$
1,097

 
$
(134
)
 
$
963

v3.19.1
Revenue from Contracts with Customers (Tables)
3 Months Ended
Mar. 31, 2019
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
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
 
 
2019
 
2018
United States
 
$
1,161

 
$
1,116

Americas other than United States
 
226

 
237

United Kingdom
 
452

 
484

Europe, Middle East, & Africa other than United Kingdom
 
1,009

 
979

Asia Pacific
 
295

 
274

Total revenue
 
$
3,143

 
$
3,090

The following table summarizes revenue from contracts with customers by principal service line (in millions):
 
 
Three Months Ended March 31
 
 
2019
 
2018
Commercial Risk Solutions
 
$
1,118

 
$
1,184

Reinsurance Solutions
 
788

 
742

Retirement Solutions
 
420

 
424

Health Solutions
 
486

 
451

Data & Analytic Services
 
336

 
294

Elimination
 
(5
)
 
(5
)
Total revenue
 
$
3,143

 
$
3,090

Capitalized Contract Cost An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):
As of
 
March 31,
2019
 
December 31,
2018
Balance at beginning of period
 
$
156

 
$
145

Additions
 
9

 
53

Amortization
 
(11
)
 
(41
)
Impairment
 

 

Foreign currency translation and other
 
1

 
(1
)
Balance at end of period
 
$
155

 
$
156

An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):
As of
 
March 31,
2019
 
December 31,
2018
Balance at beginning of period
 
$
329

 
$
298

Additions
 
346

 
1,504

Amortization
 
(439
)
 
(1,465
)
Impairment
 

 

Foreign currency translation and other
 

 
(8
)
Balance at end of period
 
$
236

 
$
329



v3.19.1
Other Financial Data (Tables)
3 Months Ended
Mar. 31, 2019
Other Financial Data [Abstract]  
Schedule of Other Income (Expense) Other income (expense) consists of the following (in millions):
 
Three Months Ended March 31
 
2019
 
2018
Foreign currency remeasurement
$
(11
)
 
$
(16
)
Disposal of business
5

 
(1
)
Pension and other postretirement
4

 
2

Equity earnings
1

 
1

Financial instruments
1

 

Other

 
(1
)
Total
$

 
$
(15
)
Schedule of Allowance for Doubtful Accounts An analysis of the allowance for doubtful accounts are as follows (in millions):
 
Three Months Ended March 31
 
2019
 
2018
Balance at beginning of period
$
64

 
$
59

Provision charged to Other general expenses
8

 
8

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

 
1

Balance at end of period
$
64

 
$
65

Schedule of Other Current Assets The components of Other current assets are as follows (in millions):
As of
March 31,
2019
 
December 31,
2018
Costs to fulfill contracts with customers (1)
$
236

 
$
329

Prepaid expenses
108

 
97

Taxes receivable
81

 
113

Other (2)
106

 
79

Total
$
531

 
$
618


(1)
Refer to Note 3 “Revenue from Contracts with Customers” for further information.
(2)
December 31, 2018 includes $12 million previously classified as “Receivables from the Divested Business
Schedule of Other Non-current Assets The components of Other non-current assets are as follows (in millions):
As of
March 31,
2019
 
December 31,
2018
Costs to obtain contracts with customers (1)
$
155

 
$
156

Taxes receivable
99

 
100

Leases (2)
70

 

Investments
55

 
54

Other
130

 
138

Total
$
509

 
$
448


(1)
Refer to Note 3 “Revenue from Contracts with Customers” for further information.
(2)
Refer to Note 20 “Lease Commitments” for further information.
Schedule of Other Current Liabilities The components of Other current liabilities are as follows (in millions):
As of
March 31,
2019
 
December 31,
2018
Deferred revenue (1)
$
305

 
$
251

Leases (2)
241

 

Taxes payable
158

 
83

Other
516

 
602

Total
$
1,220

 
$
936


(1)
During the Three Months Ended March 31, 2019, and twelve months ended December 31, 2018, $134 million and $487 million, respectively, was recognized in the Condensed Consolidated Statement of Income.
(2)
Refer to Note 20 “Lease Commitments” for further information.
Schedule of Other Non-current Liabilities The components of Other non-current liabilities are as follows (in millions):
As of
March 31,
2019
 
December 31,
2018
Taxes payable (1)
$
596

 
$
585

Leases
50

 
169

Deferred revenue
60

 
65

Compensation and benefits
44

 
56

Other
223

 
222

Total
$
973

 
$
1,097


(1) Includes $238 million and $240 million for the non-current portion of the Transition Tax as of March 31, 2019 and December 31, 2018, respectively.
v3.19.1
Discontinued Operations (Tables)
3 Months Ended
Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations The following table presents the financial results of the Divested Business (in millions):
 
 
Three Months Ended March 31

 
2019
 
2018
Expenses
 
 
 
 
Total operating expenses
 
$

 
$
3

Loss from discontinued operations before income taxes
 

 
(3
)
Income tax benefit
 

 
(1
)
Net loss from discontinued operations excluding gain
 

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

 
8

Net income from discontinued operations
 
$

 
$
6

v3.19.1
Restructuring (Tables)
3 Months Ended
Mar. 31, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs The following table summarizes restructuring and separation costs by type that have been incurred through March 31, 2019 and are estimated to be incurred through the end of the Restructuring Plan (in millions). Estimated costs by type may be revised in future periods as these assumptions are updated:
 
 
Three Months Ended March 31, 2019
 
Inception to Date
 
Estimated Remaining Costs
 
Estimated Total Cost (1)
Workforce reduction
 
$
24

 
$
438

 
$
12

 
$
450

Technology rationalization (2)
 
11

 
91

 
39

 
130

Lease consolidation (2)
 
9

 
45

 
20

 
65

Asset impairments
 

 
39

 
11

 
50

Other costs associated with restructuring and separation (2) (3)
 
47

 
460

 
70

 
530

Total restructuring and related expenses
 
$
91

 
$
1,073

 
$
152

 
$
1,225

(1)
Actual costs, when incurred, may vary due to changes in the assumptions built into the Restructuring Plan.  Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives.
(2)
Total contract termination costs incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs associated with restructuring and separation, respectively, for the three months ended March 31, 2019 were $1 million, $9 million, and $2 million; and since inception of the Restructuring Plan were, respectively, $7 million, $42 million, and $90 million. Total estimated contract termination costs expected to be incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs associated with restructuring and separation, respectively, are $15 million, $80 million, and $95 million.
(3)
Other costs associated with the Restructuring Plan include those to separate the Divested Business, as well as moving costs, and consulting and legal fees. These costs are generally recognized when incurred.
Schedule of Restructuring Reserve by Type of Cost The changes in the Company’s liabilities for the Restructuring Plan as of March 31, 2019 are as follows (in millions):
 
 
 
Balance as of December 31, 2018
 
$
201

Expensed
 
88

Cash payments
 
(113
)
Foreign currency translation
 
(1
)
Balance as of March 31, 2019
 
$
175

v3.19.1
Acquisitions and Dispositions of Businesses (Tables)
3 Months Ended
Mar. 31, 2019
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed The following table includes the fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisitions (in millions):
 
 
Three Months Ended March 31, 2019
Consideration Transferred
 
$
17

Deferred and contingent consideration
 
5

Aggregate consideration transferred
 
$
22

 
 
 
Assets acquired
 
 
Cash and cash equivalents
 
$
2

Goodwill
 
15

Intangible assets, net
 
9

Other assets
 
4

Total assets acquired
 
30

Liabilities assumed
 
 
Current liabilities
 
6

Other non-current liabilities
 
2

Total liabilities assumed
 
8

Net assets acquired
 
$
22

v3.19.1
Goodwill and Other Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in the Net Carrying Amount of Goodwill by Operating Segment The changes in the net carrying amount of goodwill for the three months ended March 31, 2019 are as follows (in millions):
Balance as of December 31, 2018
$
8,171

Goodwill related to current year acquisitions
15

Goodwill related to disposals
(1
)
Goodwill related to prior year acquisitions
1

Foreign currency translation and other
33

Balance as of March 31, 2019
$
8,219

Schedule of Other Intangible Assets by Asset Class Other intangible assets by asset class are as follows (in millions):
 
March 31, 2019
 
December 31, 2018
 
Gross Carrying Amount
 
Accumulated
Amortization and Impairment
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated
Amortization and Impairment
 
Net Carrying Amount
Customer related and contract based
$
2,282

 
$
1,501

 
$
781

 
$
2,240

 
$
1,444

 
$
796

Tradenames
1,030

 
795

 
235

 
1,027

 
740

 
287

Technology and other
391

 
330

 
61

 
391

 
325

 
66

Total
$
3,703

 
$
2,626

 
$
1,077

 
$
3,658

 
$
2,509

 
$
1,149

Schedule of Estimated Future Amortization Expense on Intangible Assets The estimated future amortization for finite lived intangible assets as of March 31, 2019 is as follows (in millions):
Remainder of 2019
$
311

2020
217

2021
128

2022
85

2023
73

2024
56

Thereafter
207

Total
$
1,077

v3.19.1
Debt (Tables)
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages):
 
 
Three Months Ended March 31
 
 
2019
 
2018
Weighted average commercial paper outstanding
 
$
323

 
$
125

Weighted average interest rate of commercial paper outstanding
 
0.49
%
 
(0.50
)%
Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Company’s Condensed Consolidated Statements of Financial Position, is as follows (in millions):
As of
 
March 31, 2019
 
December 31, 2018
Commercial paper outstanding
 
$
423

 
$
250

v3.19.1
Shareholders' Equity (Tables)
3 Months Ended
Mar. 31, 2019
Equity [Abstract]  
Schedule of Repurchase Agreements The following table summarizes the Company’s Share Repurchase activity (in millions, except per share data):
 
Three Months Ended March 31
 
2019
 
2018
Shares repurchased
0.6

 
3.9

Average price per share
$
161.16

 
$
140.94

Costs recorded to retained earnings:

 

Total repurchase cost
$
100

 
$
550

Additional associated costs
1

 
3

Total costs recorded to retained earnings
$
101

 
$
553

Schedule of Components of Weighted Average Number of Shares Weighted average ordinary shares outstanding are as follows (in millions):
 
Three Months Ended March 31
 
2019
 
2018
Basic weighted average ordinary shares outstanding
242.2

 
248.5

Dilutive effect of potentially issuable shares
1.5

 
1.7

Diluted weighted average ordinary shares outstanding
243.7

 
250.2

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

 

 
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. Refer to Note 15 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity.
(2)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense).
v3.19.1
Employee Benefits (Tables)
3 Months Ended
Mar. 31, 2019
Retirement Benefits [Abstract]  
Components of net periodic benefit cost for the pension plans The following table provides the components of the net periodic (benefit) cost recognized in the Condensed Consolidated Statements of Income for Aon’s material U.K., U.S., and other significant international pension plans 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
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Interest cost
$
28

 
$
29

 
$
27

 
$
25

 
$
7

 
$
7

Expected return on plan assets, net of administration expenses
(49
)
 
(51
)
 
(34
)
 
(36
)
 
(10
)
 
(12
)
Amortization of prior-service cost
1

 

 
1

 

 

 

Amortization of net actuarial loss
7

 
8

 
13

 
15

 
3

 
3

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

 
4

 

 
(2
)
Loss on pension settlement

 
7

 

 

 

 

Total net periodic (benefit) cost
$
(13
)

$
(7
)

$
7


$
4


$


$
(2
)

v3.19.1
Share-Based Compensation Plans (Tables)
3 Months Ended
Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [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
 
2019
 
2018
Restricted share units (“RSUs”)
$
63

 
$
58

Performance share awards (“PSAs”)
23

 
16

Employee share purchase plans
3

 
3

Total share-based compensation expense 
$
89

 
$
77

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

 
$
120

 
4,849

 
$
104

Granted
517

 
$
170

 
505

 
$
144

Vested
(677
)
 
$
117

 
(806
)
 
$
101

Forfeited
(41
)
 
$
121

 
(63
)
 
$
105

Non-vested at end of period
4,007

 
$
127

 
4,485

 
$
109


(1)
Represents per share weighted average fair value of award at date of grant.
Performance-based plans during the three months ended March 31, 2019 and the years ended December 31, 2018 and 2017, respectively (shares in thousands and dollars in millions, except fair value):
 
March 31,
2019
 
December 31,
2018
 
December 31,
2017
Target PSAs granted during period
467

 
564

 
548

Weighted average fair value per share at date of grant
$
165

 
$
134

 
$
114

Number of shares that would be issued based on current performance levels
467

 
838

 
1,067

Unamortized expense, based on current performance levels
$
77

 
$
70

 
$
32

v3.19.1
Derivatives and Hedging (Tables)
3 Months Ended
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional and fair values of derivative instruments The notional and fair values of derivative instruments are as follows (in millions):
 
Notional Amount
 
Net Amount of Derivative Assets
 Presented in the Statements of Financial Position (1)
 
Net Amount of Derivative Liabilities
 Presented in the Statements of Financial Position (2)
 
March 31,
2019
 
December 31,
2018
 
March 31,
2019
 
December 31,
2018
 
March 31,
2019
 
December 31,
2018
Foreign exchange contracts
 

 
 

 
 

 
 

 
 

 
 

Accounted for as hedges
$
565

 
$
646

 
$
20

 
$
17

 
$
1

 
$
2

Not accounted for as hedges (3)
321

 
269

 

 
1

 

 
6

Total
$
886

 
$
915

 
$
20

 
$
18

 
$
1

 
$
8

(1)
Included within Other current assets ($6 million at March 31, 2019 and $3 million at December 31, 2018) or Other non-current assets ($14 million at March 31, 2019 and $15 million at December 31, 2018).
(2)
Included within Other current liabilities ($1 million at March 31, 2019 and $5 million at December 31, 2018) or Other non-current liabilities ($3 million at December 31, 2018).
(3)
These contracts typically are for 30 day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date.
Derivative gains (losses) The amounts of derivative gains (losses) recognized in the Financial Statements are as follows (in millions):
 
 
Three Months Ended
 
 
March 31, 2019
 
March 31, 2018
Gain (Loss) recognized in Accumulated other comprehensive loss
 
$
4

 
$
14


The amounts of derivative gains (losses) reclassified from Accumulated other comprehensive loss into the Condensed Consolidated Statements of Income are as follows (in millions):
 
 
Three Months Ended
 
 
March 31, 2019
 
March 31, 2018
Compensation and benefits
 
$

 
$
1

Other general expenses
 

 
(1
)
Interest expense
 
(1
)
 
(1
)
Revenue (1)
 
(4
)
 

Other income (expense) (1)
 

 
(3
)
Total
 
$
(5
)
 
$
(4
)

(1)
With the adoption of new derivative guidance in 2019, gains (losses) on derivatives accounted for as hedges are recognized in Total revenue in the Company’s Condensed Consolidated Statements of Income rather than Other income (expense). Refer to Note 2 “Accounting Principles and Practices” for additional details.
v3.19.1
Fair Value Measurements and Financial Instruments (Tables)
3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities that are measured at fair value on a recurring basis The following tables present the categorization of the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018 (in millions):
 
 
 
Fair Value Measurements Using
 
Balance at
March 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)
$
1,979

 
$
1,979

 
$

 
$

Other investments
 

 
 

 
 

 
 

Government bonds
$
1

 
$

 
$
1

 
$

Equity investments
$
2

 
$

 
$
2

 
$

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
25

 
$

 
$
25

 
$

Liabilities
 

 
 

 
 

 
 

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
6

 
$

 
$
6

 
$

(1)
Included within Fiduciary assets or Short-term investments in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity.
(2)
Refer to Note 15 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity.
 
 
 
Fair Value Measurements Using
 
Balance at December 31, 2018
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
Assets
 

 
 

 
 

 
 

Money market funds (1)
$
1,759

 
$
1,759

 
$

 
$

Other investments
 

 
 

 
 

 
 

Government bonds
$
1

 
$

 
$
1

 
$

Equity investments
$
2

 
$

 
$
2

 
$

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
21

 
$

 
$
21

 
$

Liabilities
 

 
 

 
 

 
 

Derivatives (2)
 

 
 

 
 

 
 

Gross foreign exchange contracts
$
12

 
$

 
$
12

 
$

(1)
Included within Fiduciary assets or Short-term investments in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. 
(2)
Refer to Note 15 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity.
Schedule of financial instruments where the carrying amounts and fair values differ The fair value of debt is classified as Level 2 of the fair value hierarchy. The following table provides the carrying value and fair value for the Company’s term debt (in millions):
 
March 31, 2019
 
December 31, 2018
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt
$
5,990

 
$
6,344

 
$
5,993

 
$
6,159

v3.19.1
Guarantee of Registered Securities (Tables)
3 Months Ended
Mar. 31, 2019
Guarantee of Registered Securities [Abstract]  
Condensed Consolidating Statements of Income Condensed Consolidating Statement of Income
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon plc
 
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 expenses (income)
 

 
(4
)
 
350

 

 
346

Total operating expenses
 
20

 
8

 
2,243

 

 
2,271

Operating income (loss)
 
(20
)
 
(8
)
 
900

 

 
872

Interest income
 

 
9

 

 
(7
)
 
2

Interest expense
 
(46
)
 
(28
)
 
(5
)
 
7

 
(72
)
Intercompany interest income (expense)
 
4

 
(116
)
 
112

 

 

Intercompany other income (expense)
 
31

 
(99
)
 
68

 

 

Other income (expense)
 
5

 
(11
)
 
8

 
(2
)
 

Income (loss) from continuing operations before income taxes
 
(26
)
 
(253
)
 
1,083

 
(2
)
 
802

Income tax expense (benefit)
 
(5
)
 
(42
)
 
173

 

 
126

Net income (loss) from continuing operations
 
(21
)
 
(211
)
 
910

 
(2
)
 
676

Net income from discontinued operations
 

 

 

 

 

Net income (loss) before equity in earnings of subsidiaries
 
(21
)
 
(211
)
 
910

 
(2
)
 
676

Equity in earnings of subsidiaries
 
682

 
724

 
513

 
(1,919
)
 

Net income
 
661

 
513

 
1,423

 
(1,921
)
 
676

Less: Net income attributable to noncontrolling interests
 

 

 
17

 

 
17

Net income attributable to Aon shareholders
 
$
661

 
$
513

 
$
1,406

 
$
(1,921
)
 
$
659

Condensed Consolidating Statement of Income
 
 
Three Months Ended March 31, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$
3,090

 
$

 
$
3,090

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
19

 
1

 
1,596

 

 
1,616

Information technology
 

 

 
115

 

 
115

Premises
 

 

 
93

 

 
93

Depreciation of fixed assets
 

 

 
39

 

 
39

Amortization and impairment of intangible assets
 

 

 
110

 

 
110

Other general expenses (income)
 
1

 

 
317

 

 
318

Total operating expenses
 
20

 
1

 
2,270

 

 
2,291

Operating income (loss)
 
(20
)
 
(1
)
 
820

 

 
799

Interest income
 

 
14

 

 
(10
)
 
4

Interest expense
 
(49
)
 
(24
)
 
(7
)
 
10

 
(70
)
Intercompany interest income (expense)
 
4

 
(128
)
 
124

 

 

Intercompany other income (expense)
 
(53
)
 
(5
)
 
58

 

 

Other income (expense)
 
(25
)
 
(6
)
 
13

 
3

 
(15
)
Income (loss) from continuing operations before income taxes
 
(143
)
 
(150
)
 
1,008

 
3

 
718

Income tax expense (benefit)
 
(16
)
 
(27
)
 
157

 

 
114

Net income (loss) from continuing operations
 
(127
)
 
(123
)
 
851

 
3

 
604

Net income from discontinued operations
 

 

 
6

 

 
6

Net income (loss) before equity in earnings of subsidiaries
 
(127
)
 
(123
)
 
857

 
3

 
610

Equity in earnings of subsidiaries
 
718

 
705

 
582

 
(2,005
)
 

Net income
 
591

 
582

 
1,439

 
(2,002
)
 
610

Less: Net income attributable to noncontrolling interests
 

 

 
16

 

 
16

Net income attributable to Aon shareholders
 
$
591

 
$
582

 
$
1,423

 
$
(2,002
)
 
$
594


Condensed Consolidating Statements of Comprehensive Income Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
661

 
$
513

 
$
1,423

 
$
(1,921
)
 
$
676

Less: Net income attributable to noncontrolling interests
 

 

 
17

 

 
17

Net income attributable to Aon shareholders
 
661

 
513

 
1,406

 
(1,921
)
 
659

Other comprehensive income, 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
 

 
24

 
145

 
2

 
171

Equity in other comprehensive income of subsidiaries, net of tax
 
167

 
115

 
139

 
(421
)
 

Less: Other comprehensive income attributable to noncontrolling interests
 

 

 
2

 

 
2

Total other comprehensive income attributable to Aon shareholders
 
167

 
139

 
282

 
(419
)
 
169

Comprehensive income attributable to Aon shareholders
 
$
828

 
$
652

 
$
1,688

 
$
(2,340
)
 
$
828

Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended March 31, 2018
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
591

 
$
582

 
$
1,439

 
$
(2,002
)
 
$
610

Less: Net income attributable to noncontrolling interests
 

 

 
16

 

 
16

Net income attributable to Aon shareholders
 
591

 
582

 
1,423

 
(2,002
)
 
594

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

 
3

 
11

 

 
14

Foreign currency translation adjustments
 

 

 
250

 
(3
)
 
247

Postretirement benefit obligation
 

 
11

 
37

 

 
48

Total other comprehensive income
 

 
14

 
298

 
(3
)
 
309

Equity in other comprehensive income of subsidiaries, net of tax
 
309

 
285

 
299

 
(893
)
 

Less: Other comprehensive income attributable to noncontrolling interests
 

 

 
3

 

 
3

Total other comprehensive income attributable to Aon shareholders
 
309

 
299

 
594

 
(896
)
 
306

Comprehensive income attributable to Aon shareholders
 
$
900

 
$
881

 
$
2,017

 
$
(2,898
)
 
$
900


Condensed Consolidating Statements of Financial Position Condensed Consolidating Statement of Financial Position
 
 
As of March 31, 2019
(millions)
 
Aon plc
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Assets
 
 

 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
746

 
$
563

 
$
(709
)
 
$
600

Short-term investments
 

 
47

 
87

 

 
134

Receivables, net
 

 

 
3,242

 

 
3,242

Fiduciary assets
 

 

 
11,412

 

 
11,412

Current intercompany receivables
 
166

 
2,277

 
12,154

 
(14,597
)
 

Other current assets
 

 
10

 
521

 

 
531

Total current assets
 
166

 
3,080

 
27,979

 
(15,306
)
 
15,919

Goodwill
 

 

 
8,219

 

 
8,219

Intangible assets, net
 

 

 
1,077

 

 
1,077

Fixed assets, net
 

 

 
606

 

 
606

Operating lease right-of-use assets
 

 
114

 
879

 

 
993

Deferred tax assets
 
94

 
488

 
150

 
(144
)
 
588

Prepaid pension
 

 
5

 
1,219

 

 
1,224

Non-current intercompany receivables
 
401

 
262

 
7,202

 
(7,865
)
 

Other non-current assets
 
1

 
30

 
478

 

 
509

Investment in subsidiary
 
9,283

 
19,919

 
(355
)
 
(28,847
)
 

Total assets
 
$
9,945

 
$
23,898

 
$
47,454

 
$
(52,162
)
 
$
29,135

 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 

 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$
351

 
$
75

 
$
1,762

 
$
(709
)
 
$
1,479

Short-term debt and current portion of long-term debt
 
248

 
175

 
3

 

 
426

Fiduciary liabilities
 

 

 
11,412

 

 
11,412

Current intercompany payables
 
339

 
13,283

 
975

 
(14,597
)
 

Other current liabilities
 

 
81

 
1,139

 

 
1,220

Total current liabilities
 
938

 
13,614

 
15,291

 
(15,306
)
 
14,537

Long-term debt
 
4,228

 
1,762

 

 

 
5,990

Non-current operating lease liabilities
 

 
153

 
825

 

 
978

Deferred tax liabilities
 

 

 
349

 
(144
)
 
205

Pension, other postretirement and postemployment liabilities
 

 
1,241

 
349

 

 
1,590

Non-current intercompany payables
 

 
7,368

 
497

 
(7,865
)
 

Other non-current liabilities
 
4

 
115

 
854

 

 
973

Total liabilities
 
5,170

 
24,253

 
18,165

 
(23,315
)
 
24,273

 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
4,775

 
(355
)
 
29,202

 
(28,847
)
 
4,775

Noncontrolling interests
 

 

 
87

 

 
87

Total equity
 
4,775

 
(355
)
 
29,289

 
(28,847
)
 
4,862

Total liabilities and equity
 
$
9,945

 
$
23,898

 
$
47,454

 
$
(52,162
)
 
$
29,135

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

 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
862

 
$
575

 
$
(781
)
 
$
656

Short-term investments
 

 
56

 
116

 

 
172

Receivables, net
 

 

 
2,760

 

 
2,760

Fiduciary assets
 

 

 
10,166

 

 
10,166

Current intercompany receivables
 
191

 
897

 
11,634

 
(12,722
)
 

Other current assets
 

 
16

 
602

 

 
618

Total current assets
 
191

 
1,831

 
25,853

 
(13,503
)
 
14,372

Goodwill
 

 

 
8,171

 

 
8,171

Intangible assets, net
 

 

 
1,149

 

 
1,149

Fixed assets, net
 

 

 
588

 

 
588

Operating lease right-of-use assets
 

 

 

 

 

Deferred tax assets
 
94

 
467

 
144

 
(144
)
 
561

Prepaid pension
 

 
5

 
1,128

 

 
1,133

Non-current intercompany receivables
 
403

 
261

 
7,225

 
(7,889
)
 

Other non-current assets
 
1

 
30

 
417

 

 
448

Investment in subsidiary
 
8,433

 
19,132

 
(882
)
 
(26,683
)
 

Total assets
 
$
9,122

 
$
21,726

 
$
43,793

 
$
(48,219
)
 
$
26,422

 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 

 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$
274

 
$
70

 
$
2,380

 
$
(781
)
 
$
1,943

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

 

 
1

 

 
251

Fiduciary liabilities
 

 

 
10,166

 

 
10,166

Current intercompany payables
 
213

 
11,875

 
634

 
(12,722
)
 

Other current liabilities
 

 
69

 
867

 

 
936

Total current liabilities
 
737

 
12,014

 
14,048

 
(13,503
)
 
13,296

Long-term debt
 
4,231

 
1,762

 

 

 
5,993

Non-current operating lease liabilities
 

 

 

 

 

Deferred tax liabilities
 

 

 
325

 
(144
)
 
181

Pension, other postretirement and postemployment liabilities
 

 
1,275

 
361

 

 
1,636

Non-current intercompany payables
 

 
7,390

 
499

 
(7,889
)
 

Other non-current liabilities
 
3

 
167

 
927

 

 
1,097

Total liabilities
 
4,971

 
22,608

 
16,160

 
(21,536
)
 
22,203

 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
4,151

 
(882
)
 
27,565

 
(26,683
)
 
4,151

Noncontrolling interests
 

 

 
68

 

 
68

Total equity
 
4,151

 
(882
)
 
27,633

 
(26,683
)
 
4,219

Total liabilities and equity
 
$
9,122

 
$
21,726

 
$
43,793

 
$
(48,219
)
 
$
26,422

Condensed Consolidating Statements of Cash Flows Condensed Consolidating Statement of Cash Flows
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon plc
 
Aon
Corporation
 
Other
Non-Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$
(11
)
 
$
(34
)
 
$
179

 
$
(60
)
 
$
74

 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 
8

 
4

 

 
12

Payments for investments
 

 
(9
)
 
(5
)
 

 
(14
)
Net sales 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
 

 
8

 
(35
)
 

 
(27
)
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(100
)
 

 

 

 
(100
)
Advances from (to) affiliates
 
305

 
(265
)
 
(172
)
 
132

 

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

 
(90
)
 
(193
)
 
132

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

 

 
37

 

 
37

Net increase (decrease) in cash and cash equivalents
 

 
(116
)
 
(12
)
 
72

 
(56
)
Cash and cash equivalents at beginning of period
 

 
862

 
575

 
(781
)
 
656

Cash and cash equivalents at end of period
 
$

 
$
746

 
$
563

 
$
(709
)
 
$
600


Condensed Consolidating Statement of Cash Flows
 
 
Three Months Ended March 31, 2018
(millions)
 
Aon plc
 
Aon
Corporation
 
Other
Non-Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$
(21
)
 
$
626

 
$
277

 
$
(742
)
 
$
140

 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 
10

 
7

 

 
17

Payments for investments
 
(1
)
 
(5
)
 
(6
)
 
1

 
(11
)
Net sales of short-term investments - non-fiduciary
 

 
355

 
60

 

 
415

Acquisition of businesses, net of cash acquired
 

 

 
(29
)
 

 
(29
)
Sale of businesses, net of cash sold
 

 

 
(1
)
 

 
(1
)
Capital expenditures
 

 

 
(45
)
 

 
(45
)
Cash provided by (used for) investing activities
 
(1
)
 
360

 
(14
)
 
1

 
346

 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(569
)
 

 

 

 
(569
)
Advances from (to) affiliates
 
418

 
(933
)
 
(142
)
 
657

 

Issuance of shares for employee benefit plans
 
(109
)
 

 

 

 
(109
)
Issuance of debt
 
431

 
375

 
2

 

 
808

Repayment of debt
 
(61
)
 
(349
)
 
(294
)
 

 
(704
)
Cash dividends to shareholders
 
(89
)
 

 

 

 
(89
)
Noncontrolling interests and other financing activities
 

 

 

 

 

Cash provided by (used for) financing activities
 
21

 
(907
)
 
(434
)
 
657

 
(663
)
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 

 

 
18

 

 
18

Net increase (decrease) in cash and cash equivalents
 
(1
)
 
79

 
(153
)
 
(84
)
 
(159
)
Cash and cash equivalents at beginning of period
 
1

 
2,524

 
793

 
(2,562
)
 
756

Cash and cash equivalents at end of period
 
$

 
$
2,603

 
$
640

 
$
(2,646
)
 
$
597

v3.19.1
Lease Commitments - (Tables)
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Assets And Liabilities Of Lessee The classification of operating and finance lease asset and liability balances within the Condensed Consolidated Statements of Financial Position is as follows (in millions):
As of
 
March 31,
2019
Assets
 
 
Operating lease assets
Operating lease right-of-use assets
$
993

Finance lease assets
Other non-current assets
70

Total lease assets
 
$
1,063

 
 
 
Liabilities
 
 
Current lease liabilities
 
 
   Operating
Other current liabilities
$
214

   Finance
Other current liabilities
27

Non-current lease liabilities
 
 
   Operating
Non-current operating lease liabilities
978

   Finance
Other non-current liabilities
50

Total lease liabilities
 
$
1,269

Lease, Cost Weighted average remaining lease term and discount rate related to operating and finance leases are as follows:
As of
March 31,
 2019
Weighted average remaining lease term (years)
 
   Operating leases
8.0

   Finance leases
2.7

Weighted average discount rate
 
   Operating leases
3.3
%
   Finance leases
2.5
%

Other cash and non-cash related activities are as follows (in millions):
 
Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
 
   Operating cash flows from operating leases
$
52

ROU assets obtained in exchange for new operating lease liabilities
$
26

The components of lease costs are as follows (in millions):
 
Three Months Ended March 31, 2019
Operating lease cost
$
68

Finance lease cost
 
   Amortization of leased assets
7

   Interest on lease liabilities
1

Variable lease cost
6

Short-term lease cost (1)
1

Sublease income
(8
)
Net lease cost
$
75

(1) Short-term lease cost does not include expenses related to leases with a lease term of one month or less.
Lessee Operating Lease Liability Maturity Maturity analysis of operating and financing leases as of March 31, 2019 are as follows (in millions):
 
Operating
 
Finance
 
Less:
 
 
 
Leases
 
Leases
 
Subleases
 
Total
Remainder of 2019
$
206

 
$
26

 
$
(26
)
 
$
206

2020
244

 
27

 
(31
)
 
240

2021
217

 
23

 
(31
)
 
209

2022
192

 
2

 
(32
)
 
162

2023
138

 

 
(14
)
 
124

Thereafter
494

 

 
(4
)
 
490

Total undiscounted future minimum lease payments
$
1,491

 
$
78

 
$
(138
)
 
$
1,431

Less: Imputed interest
(161
)
 
(1
)
 

 
(162
)
Present value of lease liabilities
$
1,330

 
$
77

 
$
(138
)
 
$
1,269

Finance Lease, Liability, Maturity Maturity analysis of operating and financing leases as of March 31, 2019 are as follows (in millions):
 
Operating
 
Finance
 
Less:
 
 
 
Leases
 
Leases
 
Subleases
 
Total
Remainder of 2019
$
206

 
$
26

 
$
(26
)
 
$
206

2020
244

 
27

 
(31
)
 
240

2021
217

 
23

 
(31
)
 
209

2022
192

 
2

 
(32
)
 
162

2023
138

 

 
(14
)
 
124

Thereafter
494

 

 
(4
)
 
490

Total undiscounted future minimum lease payments
$
1,491

 
$
78

 
$
(138
)
 
$
1,431

Less: Imputed interest
(161
)
 
(1
)
 

 
(162
)
Present value of lease liabilities
$
1,330

 
$
77

 
$
(138
)
 
$
1,269

Lessor, Operating Lease, Payments to be Received, Maturity Maturity analysis of operating and financing leases as of March 31, 2019 are as follows (in millions):
 
Operating
 
Finance
 
Less:
 
 
 
Leases
 
Leases
 
Subleases
 
Total
Remainder of 2019
$
206

 
$
26

 
$
(26
)
 
$
206

2020
244

 
27

 
(31
)
 
240

2021
217

 
23

 
(31
)
 
209

2022
192

 
2

 
(32
)
 
162

2023
138

 

 
(14
)
 
124

Thereafter
494

 

 
(4
)
 
490

Total undiscounted future minimum lease payments
$
1,491

 
$
78

 
$
(138
)
 
$
1,431

Less: Imputed interest
(161
)
 
(1
)
 

 
(162
)
Present value of lease liabilities
$
1,330

 
$
77

 
$
(138
)
 
$
1,269

v3.19.1
Accounting Principles and Practices - (Narrative) (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Operating lease right-of-use assets $ 993  
Present value of lease liabilities $ 1,330  
Accounting Standards Update 2016-02    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Operating lease right-of-use assets   $ 1,100
Present value of lease liabilities   $ 1,300
v3.19.1
Accounting Principles and Practices - Schedule of Changes to Balance Sheet for New Accounting Standards (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Jan. 01, 2019
Dec. 31, 2018
Assets      
Operating lease right-of-use assets $ 993    
Other non-current assets 509   $ 448
Liabilities      
Other current liabilities 1,220   936
Non-current operating lease liabilities 978    
Other non-current liabilities $ 973   1,097
Accounting Standards Update 2016-02      
Assets      
Operating lease right-of-use assets   $ 1,100  
Operating lease right-of-use assets      
Assets      
Operating lease right-of-use assets   1,021  
Operating lease right-of-use assets | Accounting Standards Update 2016-02      
Assets      
Operating lease right-of-use assets   1,021  
Other non-current assets      
Assets      
Other non-current assets   526 448
Other non-current assets | Accounting Standards Update 2016-02      
Assets      
Other non-current assets   78  
Other current liabilities      
Liabilities      
Other current liabilities   1,155 936
Other current liabilities | Accounting Standards Update 2016-02      
Liabilities      
Other current liabilities   219  
Non-current operating lease liabilities      
Liabilities      
Non-current operating lease liabilities   1,014  
Non-current operating lease liabilities | Accounting Standards Update 2016-02      
Liabilities      
Non-current operating lease liabilities   1,014  
Other non-current liabilities      
Liabilities      
Other non-current liabilities   963 $ 1,097
Other non-current liabilities | Accounting Standards Update 2016-02      
Liabilities      
Other non-current liabilities   $ (134)  
v3.19.1
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Disaggregation of Revenue [Line Items]    
Total revenue $ 3,143 $ 3,090
United States    
Disaggregation of Revenue [Line Items]    
Total revenue 1,161 1,116
Americas other than United States    
Disaggregation of Revenue [Line Items]    
Total revenue 226 237
United Kingdom    
Disaggregation of Revenue [Line Items]    
Total revenue 452 484
Europe, Middle East, & Africa other than United Kingdom    
Disaggregation of Revenue [Line Items]    
Total revenue 1,009 979
Asia Pacific    
Disaggregation of Revenue [Line Items]    
Total revenue 295 274
Operating Segments | Commercial Risk Solutions    
Disaggregation of Revenue [Line Items]    
Total revenue 1,118 1,184
Operating Segments | Reinsurance Solutions    
Disaggregation of Revenue [Line Items]    
Total revenue 788 742
Operating Segments | Retirement Solutions    
Disaggregation of Revenue [Line Items]    
Total revenue 420 424
Operating Segments | Health Solutions    
Disaggregation of Revenue [Line Items]    
Total revenue 486 451
Operating Segments | Data & Analytic Services    
Disaggregation of Revenue [Line Items]    
Total revenue 336 294
Elimination    
Disaggregation of Revenue [Line Items]    
Total revenue $ (5) $ (5)
v3.19.1
Revenue from Contracts with Customers - Contract Assets Rollforward (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Capitalized Cost To Fulfill Customer Contracts    
Change in Capitalized Contract Costs    
Balance at beginning of period $ 329 $ 298
Additions 346 1,504
Amortization (439) (1,465)
Impairment 0 0
Foreign currency and other 0 (8)
Balance at end of period 236 329
Capitalized Cost To Obtain Customer Contracts    
Change in Capitalized Contract Costs    
Balance at beginning of period 156 145
Additions 9 53
Amortization (11) (41)
Impairment 0 0
Foreign currency and other 1 (1)
Balance at end of period $ 155 $ 156
v3.19.1
Cash and Cash Equivalents and Short-term Investments (Details)
£ in Millions, $ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
Mar. 31, 2019
GBP (£)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Cash, Cash Equivalents, and Short-term Investments [Abstract]        
Cash and cash equivalents and short-term investments     $ 734.0 $ 828.0
Cash and cash equivalents and short term investments, period increase (decrease) $ (94.0)      
Restricted cash and investments     140.0 91.0
Restricted cash and cash equivalents     48.0  
Operating funds in U.K.   £ 42.7 $ 56.4 $ 53.9
v3.19.1
Other Financial Data - Schedule of Other Income (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Other (Expense) Income    
Foreign currency remeasurement $ (11) $ (16)
Disposal of business 5 (1)
Pension and other postretirement 4 2
Equity earnings 1 1
Financial instruments 1 0
Other 0 (1)
Total $ 0 $ (15)
v3.19.1
Other Financial Data - Schedule of Allowance for Doubtful Accounts (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Allowance for Doubtful Accounts Receivable [Roll Forward]    
Balance at beginning of period $ 64 $ 59
Provision charged to Other general expenses 8 8
Accounts written off, net of recoveries (8) (3)
Foreign currency translation and other 0 1
Balance at end of period $ 64 $ 65
v3.19.1
Other Financial Data - Schedule of Other Current Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Other Financial Data [Abstract]    
Cost to fulfill contracts with customers $ 236 $ 329
Prepaid expenses 108 97
Taxes receivable 81 113
Other 106 79
Total $ 531 618
Receivables from divested business   $ 12
v3.19.1
Other Financial Data - Schedule of Other Non-current Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Other Financial Data [Abstract]    
Cost to obtain contracts with customers $ 155 $ 156
Taxes receivable 99 100
Finance lease assets 70  
Investments 55 54
Other 130 138
Total $ 509 $ 448
v3.19.1
Other Financial Data - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Other Financial Data [Abstract]    
Deferred revenue $ 305 $ 251
Leases 241  
Taxes payable 158 83
Other 516 602
Total 1,220 936
Revenue recognized from deferred revenue $ 134 $ 487
v3.19.1
Other Financial Data - Schedule of Other Non-current Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Other Financial Data [Abstract]    
Taxes payable $ 596 $ 585
Leases 50 169
Deferred revenue 60 65
Compensation and benefits 44 56
Other 223 222
Total 973 1,097
Noncurrent portion of transition tax $ 238 $ 240
v3.19.1
Discontinued Operations (Details) - Tempo Business
May 01, 2017
USD ($)
agreement
Jun. 30, 2017
USD ($)
Dispositions    
Number of commercial agreements | agreement 2  
Discontinued Operations, Disposed of by Sale    
Dispositions    
Purchase price $ 4,300,000,000  
Cash and cash equivalents from discontinued operations   $ 0
Maximum | Discontinued Operations, Disposed of by Sale    
Dispositions    
Purchase price 4,200,000,000  
Deferred consideration $ 500,000,000  
v3.19.1
Discontinued Operations Income Statement (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Expenses    
Net income from discontinued operations $ 0 $ 6
Tempo Business | Discontinued Operations, Disposed of by Sale    
Expenses    
Total operating expenses 0 3
Loss from discontinued operations before income taxes 0 (3)
Income tax benefit 0 (1)
Net loss from discontinued operations excluding gain 0 (2)
Gain on sale of discontinued operations, net of tax 0 8
Net income from discontinued operations $ 0 $ 6
v3.19.1
Restructuring - Narrative (Details) - 2017 Plan
$ in Millions
3 Months Ended 27 Months Ended
Mar. 31, 2019
USD ($)
job_elimination
Dec. 31, 2018
USD ($)
Mar. 31, 2019
USD ($)
job_elimination
Restructuring Cost and Reserve [Line Items]      
Additional expected cost   $ 200  
Additional expected cash investment   150  
Additional expected non-cash expense   $ 50  
Expected total cost $ 1,225   $ 1,225
Number of positions eliminated to date | job_elimination     4,491
Costs incurred 91   $ 1,073
Workforce reduction      
Restructuring Cost and Reserve [Line Items]      
Expected total cost 450   450
Costs incurred 24   438
Technology rationalization      
Restructuring Cost and Reserve [Line Items]      
Expected total cost 130   130
Costs incurred 11   91
Lease consolidation      
Restructuring Cost and Reserve [Line Items]      
Expected total cost 65   65
Costs incurred 9   45
Asset impairments      
Restructuring Cost and Reserve [Line Items]      
Expected total cost 50   50
Costs incurred 0   39
Other Restructuring      
Restructuring Cost and Reserve [Line Items]      
Expected total cost 530   530
Costs incurred $ 47   $ 460
Minimum      
Restructuring Cost and Reserve [Line Items]      
Expected number of positions eliminated | job_elimination 4,800    
Maximum      
Restructuring Cost and Reserve [Line Items]      
Expected number of positions eliminated | job_elimination 5,400    
v3.19.1
Restructuring - Schedule of Restructuring and Related Expenses (Details) - 2017 Plan
$ in Millions
3 Months Ended 27 Months Ended
Mar. 31, 2019
USD ($)
Mar. 31, 2019
USD ($)
Restructuring Cost and Reserve [Line Items]    
Costs incurred $ 91 $ 1,073
Estimated Remaining Costs 152 152
Expected total cost 1,225 1,225
Workforce reduction    
Restructuring Cost and Reserve [Line Items]    
Costs incurred 24 438
Estimated Remaining Costs 12 12
Expected total cost 450 450
Technology rationalization    
Restructuring Cost and Reserve [Line Items]    
Costs incurred 11 91
Estimated Remaining Costs 39 39
Expected total cost 130 130
Contract termination costs incurred 1 7
Expected contract termination cost remaining 15 15
Lease consolidation    
Restructuring Cost and Reserve [Line Items]    
Costs incurred 9 45
Estimated Remaining Costs 20 20
Expected total cost 65 65
Contract termination costs incurred 9 42
Expected contract termination cost remaining 80 80
Asset impairments    
Restructuring Cost and Reserve [Line Items]    
Costs incurred 0 39
Estimated Remaining Costs 11 11
Expected total cost 50 50
Other costs associated with restructuring and separation    
Restructuring Cost and Reserve [Line Items]    
Costs incurred 47 460
Estimated Remaining Costs 70 70
Expected total cost 530 530
Contract termination costs incurred 2 90
Expected contract termination cost remaining $ 95 $ 95
v3.19.1
Restructuring - Schedule of Restructuring Reserve (Details) - 2017 Plan
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
Restructuring Plan  
Balance as of December 31, 2018 $ 201
Expensed 88
Cash payments (113)
Foreign currency translation (1)
Balance as of March 31, 2019 $ 175
v3.19.1
Acquisitions and Dispositions of Businesses - Acquisitions (Details)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2019
USD ($)
acquisition
Dec. 31, 2018
USD ($)
acquisition
Business Acquisition    
Number of business acquired under business combination | acquisition 1 8
Assets acquired    
Goodwill $ 8,219 $ 8,171
2019 Acquisitions    
Business Combination, Consideration Transferred [Abstract]    
Consideration Transferred 17  
Deferred and contingent consideration 5  
Aggregate consideration transferred 22  
Assets acquired    
Cash and cash equivalents 2  
Goodwill 15  
Intangible assets, net 9  
Other assets 4  
Total assets acquired 30  
Liabilities assumed    
Current liabilities 6  
Other non-current liabilities 2  
Total liabilities assumed 8  
Net assets acquired $ 22  
v3.19.1
Acquisitions and Dispositions of Businesses - Dispositions (Details)
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
disposal
Mar. 31, 2018
USD ($)
disposal
Dispositions    
Disposal of business | $ $ 5 $ (1)
Disposal Group, Not Discontinued Operations    
Dispositions    
Number of dispositions | disposal 1 0
v3.19.1
- Goodwill and Other Intangible Assets Rollforward (Details)
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
Changes in the net carrying amount of goodwill by operating segment  
Beginning balance $ 8,171
Goodwill related to current year acquisitions 15
Goodwill related to disposals (1)
Goodwill related to prior year acquisitions 1
Foreign currency translation and other 33
Ending balance $ 8,219
v3.19.1
- Goodwill and Other Intangible Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Intangible assets with finite lives    
Gross Carrying Amount $ 3,703 $ 3,658
Accumulated Amortization and Impairment 2,626 2,509
Net Carrying Amount 1,077 1,149
Estimated amortization for intangible assets    
Remainder of 2019 311  
2020 217  
2021 128  
2022 85  
2023 73  
2024 56  
Thereafter 207  
Total 1,077  
Customer related and contract based    
Intangible assets with finite lives    
Gross Carrying Amount 2,282 2,240
Accumulated Amortization and Impairment 1,501 1,444
Net Carrying Amount 781 796
Tradenames    
Intangible assets with finite lives    
Gross Carrying Amount 1,030 1,027
Accumulated Amortization and Impairment 795 740
Net Carrying Amount 235 287
Technology and other    
Intangible assets with finite lives    
Gross Carrying Amount 391 391
Accumulated Amortization and Impairment 330 325
Net Carrying Amount $ 61 $ 66
v3.19.1
Debt - Narrative (Details)
Mar. 31, 2019
USD ($)
credit_facility
Mar. 31, 2019
EUR (€)
credit_facility
Dec. 31, 2018
USD ($)
Dec. 03, 2018
USD ($)
Mar. 08, 2018
USD ($)
Mar. 08, 2018
CAD ($)
Debt Instrument [Line Items]            
Short-term debt and current portion of long-term debt $ 426,000,000   $ 251,000,000      
Number of credit facilities | credit_facility 2 2        
4.500% Senior Notes Due December 2028 | Senior Notes            
Debt Instrument [Line Items]            
Debt face value       $ 350,000,000    
Debt interest rate percentage (as a percent) 4.50% 4.50%   4.50%    
4.76% Senior Notes Due March 2018 | Senior Notes            
Debt Instrument [Line Items]            
Short-term debt and current portion of long-term debt         $ 291,000,000 $ 375,000,000
Debt interest rate percentage (as a percent)         4.76% 4.76%
Credit Facility Expiring February 2021            
Debt Instrument [Line Items]            
Borrowings $ 0          
Foreign Line of Credit | 2020 Facility | Line of Credit            
Debt Instrument [Line Items]            
Line of credit facility, maximum borrowing capacity 900,000,000          
Credit Facility Expiring October 2022 | Line of Credit            
Debt Instrument [Line Items]            
Line of credit facility, maximum borrowing capacity 400,000,000          
Commercial paper | Commercial Paper Programs            
Debt Instrument [Line Items]            
Line of credit facility, current borrowing capacity 1,300,000,000          
United States | Commercial paper | Commercial Paper Programs            
Debt Instrument [Line Items]            
Line of credit facility, maximum borrowing capacity $ 600,000,000          
Europe | Commercial paper | Commercial Paper Programs            
Debt Instrument [Line Items]            
Line of credit facility, maximum borrowing capacity | €   € 525,000,000        
v3.19.1
Debt - Schedule of Commercial Paper (Details) - Commercial paper - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Debt Instrument [Line Items]      
Commercial paper outstanding $ 423   $ 250
Weighted average commercial paper outstanding $ 323 $ 125  
Weighted average interest rate of commercial paper outstanding 0.49% (0.50%)  
v3.19.1
Income Taxes (Details)
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Income Tax Disclosure [Abstract]    
Effective income tax rate 15.70% 15.90%
v3.19.1
Shareholders' Equity (Details) - USD ($)
shares in Millions
3 Months Ended 84 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Feb. 28, 2017
Nov. 30, 2014
Apr. 30, 2012
Common Stock Programs            
Shares purchased (in shares)     118.9      
Total cost of shares purchased $ 101,000,000 $ 553,000,000 $ 11,100,000,000      
Weighted average shares outstanding            
Basic weighted average ordinary shares outstanding (in shares) 242.2 248.5        
Dilutive effect of potentially issuable shares (in shares) 1.5 1.7        
Diluted weighted average ordinary shares outstanding (in shares) 243.7 250.2        
Number of shares excluded from the calculation of diluted earnings per share (in shares) 0.1 0.1        
Share Repurchase Program of 2014            
Common Stock Programs            
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  
Share repurchase, remaining authorization limit (in shares) $ 3,900,000,000   $ 3,900,000,000      
2012 - Share Repurchase Program            
Common Stock Programs            
Share repurchase authorization limit (up to)           $ 5,000,000,000.0
Shares purchased (in shares) 0.6 3.9        
Total cost of shares purchased $ 100,000,000 $ 550,000,000        
v3.19.1
Shareholders' Equity - Schedule of Stock Repurchases (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 84 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Class of Stock [Line Items]      
Shares purchased (in shares)     118.9
Total repurchase cost $ 101 $ 553 $ 11,100
2012 - Share Repurchase Program      
Class of Stock [Line Items]      
Shares purchased (in shares) 0.6 3.9  
Average price per share of stock repurchased (in dollars per share) $ 161.16 $ 140.94  
Total repurchase cost $ 100 $ 550  
Additional associated costs 1 3  
Total repurchase and associated costs $ 101 $ 553  
v3.19.1
Shareholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance $ 4,219 $ 5,140
Other comprehensive income (loss) before reclassifications, net 146  
Amounts reclassified from accumulated other comprehensive income (loss)    
Amounts reclassified from accumulated other comprehensive income (loss) 31  
Tax expense (8)  
Amounts reclassified from accumulated other comprehensive income (loss), net 23  
Total other comprehensive income attributable to Aon shareholders 169 306
Ending Balance 4,862 $ 5,385
Total    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (3,909)  
Amounts reclassified from accumulated other comprehensive income (loss)    
Ending Balance (3,740)  
Change in Fair Value of Financial Instruments    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (15)  
Other comprehensive income (loss) before reclassifications, net 4  
Amounts reclassified from accumulated other comprehensive income (loss)    
Amounts reclassified from accumulated other comprehensive income (loss) 5  
Tax expense (2)  
Amounts reclassified from accumulated other comprehensive income (loss), net 3  
Total other comprehensive income attributable to Aon shareholders 7  
Ending Balance (8)  
Foreign Currency Translation Adjustments    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (1,319)  
Other comprehensive income (loss) before reclassifications, net 131  
Amounts reclassified from accumulated other comprehensive income (loss)    
Amounts reclassified from accumulated other comprehensive income (loss) 0  
Tax expense 0  
Amounts reclassified from accumulated other comprehensive income (loss), net 0  
Total other comprehensive income attributable to Aon shareholders 131  
Ending Balance (1,188)  
Postretirement Benefit Obligation    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (2,575)  
Other comprehensive income (loss) before reclassifications, net 11  
Amounts reclassified from accumulated other comprehensive income (loss)    
Amounts reclassified from accumulated other comprehensive income (loss) 26  
Tax expense (6)  
Amounts reclassified from accumulated other comprehensive income (loss), net 20  
Total other comprehensive income attributable to Aon shareholders 31  
Ending Balance $ (2,544)  
v3.19.1
Employee Benefits (Details)
£ in Millions, $ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
Mar. 31, 2018
GBP (£)
Mar. 31, 2018
USD ($)
U.K.      
Defined Benefit Plan Disclosure      
Interest cost $ 28   $ 29
Expected return on plan assets, net of administration expenses (49)   (51)
Amortization of prior-service cost 1   0
Amortization of net actuarial loss 7   8
Net periodic (benefit) cost (13)   (14)
Loss on pension settlement 0   7
Total net periodic (benefit) cost (13)   (7)
Payment for settlement   £ 48 68
Benefit obligation period increase (decrease)   (44) (63)
Benefit obligation, (increase) decrease for settlement   £ 5 7
Estimate of contributions to defined benefit pension plans for the current fiscal year 80    
Contributions made to defined benefit pension plans 23   23
U.S.      
Defined Benefit Plan Disclosure      
Interest cost 27   25
Expected return on plan assets, net of administration expenses (34)   (36)
Amortization of prior-service cost 1   0
Amortization of net actuarial loss 13   15
Net periodic (benefit) cost 7   4
Loss on pension settlement 0   0
Total net periodic (benefit) cost 7   4
Estimate of contributions to defined benefit pension plans for the current fiscal year 46    
Contributions made to defined benefit pension plans 17   17
Other      
Defined Benefit Plan Disclosure      
Interest cost 7   7
Expected return on plan assets, net of administration expenses (10)   (12)
Amortization of prior-service cost 0   0
Amortization of net actuarial loss 3   3
Net periodic (benefit) cost 0   (2)
Loss on pension settlement 0   0
Total net periodic (benefit) cost 0   (2)
Estimate of contributions to defined benefit pension plans for the current fiscal year 19    
Contributions made to defined benefit pension plans $ 7   $ 8
v3.19.1
Share-Based Compensation Plans - Share-based compensation expenses recognized (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total share-based compensation expense $ 89 $ 77
Restricted share units (“RSUs”)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total share-based compensation expense 63 58
Performance share awards (“PSAs”)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total share-based compensation expense 23 16
Employee share purchase plans    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total share-based compensation expense $ 3 $ 3
v3.19.1
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, 2019
Mar. 31, 2018
Dec. 31, 2018
Non-vested share awards (in shares)      
Non-vested at beginning of period (in shares) 4,208 4,849 4,849
Granted (in shares) 517 505  
Vested (in shares) (677) (806)  
Forfeited (in shares) (41) (63)  
Non-vested at end of period (in shares) 4,007 4,485 4,208
Weighted Average Fair value      
Non-vested at beginning of period (in dollars per share) $ 120 $ 104 $ 104
Granted (in dollars per share) 170 144  
Vested (in dollars per share) 117 101  
Forfeited (in dollars per share) 121 105  
Non-vested at end of period (in dollars per share) $ 127 $ 109 $ 120
Unamortized deferred compensation expense $ 366    
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    
v3.19.1
Share-Based Compensation Plans - Performance Share Awards Narrative (Details) - Performance Shares
3 Months Ended
Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting conditions period (in years) 3 years
Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares issued, percent 0.00%
Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares issued, percent 200.00%
v3.19.1
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, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Target PSAs granted during period (in shares) 467 564 548
Weighted average fair value per share at date of grant (in dollars per share) $ 165 $ 134 $ 114
Number of shares that would be issued based on current performance levels (in shares) 467 838 1,067
Unamortized expense, based on current performance levels $ 77 $ 70 $ 32
v3.19.1
Derivatives and Hedging - Foreign Exchange Risk Management Narrative (Details)
3 Months Ended
Mar. 31, 2019
Cash Flow Hedging  
Derivative [Line Items]  
Foreign currency exposures, maximum average hedging period (less than) 2 years
Not Designated as Hedging Instrument  
Derivative [Line Items]  
Foreign currency exposures, maximum hedging period (up to) 1 year
v3.19.1
Derivatives and Hedging - Notional and fair values of derivative instruments (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Derivatives, Fair Value    
Notional Amount $ 886 $ 915
Derivative Assets 20 18
Derivative Liabilities $ 1 8
Term of derivative contract 30 days  
Other Current Assets    
Derivatives, Fair Value    
Derivative Assets $ 6 3
Other non-current assets    
Derivatives, Fair Value    
Derivative Assets 14 15
Other current liabilities    
Derivatives, Fair Value    
Derivative Liabilities 1 5
Other non-current liabilities    
Derivatives, Fair Value    
Derivative Liabilities   3
Derivatives accounted for as hedges | Gross foreign exchange contracts    
Derivatives, Fair Value    
Notional Amount 565 646
Derivative Assets 20 17
Derivative Liabilities 1 2
Not Designated as Hedging Instrument | Gross foreign exchange contracts    
Derivatives, Fair Value    
Notional Amount 321 269
Derivative Assets 0 1
Derivative Liabilities $ 0 $ 6
v3.19.1
Derivatives and Hedging - Schedule of amounts of derivative gains (losses) recognized in the Consolidated Financial Statements (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Derivative [Line Items]    
Gain (Loss) recognized in Accumulated other comprehensive loss $ 4  
Gain (Loss) recognized in Accumulated other comprehensive loss   $ 14
Derivative gains (losses) reclassified from accumulated other comprehensive loss (5)  
Derivative gain (loss) reclassified from accumulated OCI into income, effective portion, net   (4)
Compensation and benefits    
Derivative [Line Items]    
Derivative gains (losses) reclassified from accumulated other comprehensive loss 0  
Derivative gain (loss) reclassified from accumulated OCI into income, effective portion, net   1
Other general expenses    
Derivative [Line Items]    
Derivative gains (losses) reclassified from accumulated other comprehensive loss 0  
Derivative gain (loss) reclassified from accumulated OCI into income, effective portion, net   (1)
Revenue    
Derivative [Line Items]    
Derivative gains (losses) reclassified from accumulated other comprehensive loss (4)  
Derivative gain (loss) reclassified from accumulated OCI into income, effective portion, net   0
Interest expense    
Derivative [Line Items]    
Derivative gains (losses) reclassified from accumulated other comprehensive loss (1)  
Derivative gain (loss) reclassified from accumulated OCI into income, effective portion, net   (1)
Other income (expense) (1)    
Derivative [Line Items]    
Derivative gains (losses) reclassified from accumulated other comprehensive loss $ 0  
Derivative gain (loss) reclassified from accumulated OCI into income, effective portion, net   $ (3)
v3.19.1
Derivatives and Hedging - Interest Rate Management Risk Narrative (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Derivative [Line Items]    
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months $ (10)  
Not Designated as Hedging Instrument | Gross foreign exchange contracts    
Derivative [Line Items]    
Derivative gain (loss) $ (5) $ (9)
v3.19.1
Derivatives and Hedging - Foreign Hedge (Details) - 3 months ended Mar. 31, 2019 - Net Investment Hedging
€ in Millions, $ in Millions
USD ($)
EUR (€)
Derivatives, Fair Value    
European denominated commercial paper $ 248 € 220
Effective portion of loss reclassified from Accumulated OCI $ 23  
v3.19.1
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, 2019
Dec. 31, 2018
Money market funds and highly liquid debt securities    
Assets    
Money market funds and highly liquid debt securities $ 1,979 $ 1,759
Government bonds    
Assets    
Other investments 1 1
Equity investments    
Assets    
Other investments 2 2
Gross foreign exchange contracts    
Assets    
Derivatives 25 21
Liabilities    
Derivatives 6 12
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds and highly liquid debt securities    
Assets    
Money market funds and highly liquid debt securities 1,979 1,759
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds    
Assets    
Other investments 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity investments    
Assets    
Other investments 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Gross foreign exchange contracts    
Assets    
Derivatives 0 0
Liabilities    
Derivatives 0 0
Significant Other Observable Inputs (Level 2) | Money market funds and highly liquid debt securities    
Assets    
Money market funds and highly liquid debt securities 0 0
Significant Other Observable Inputs (Level 2) | Government bonds    
Assets    
Other investments 1 1
Significant Other Observable Inputs (Level 2) | Equity investments    
Assets    
Other investments 2 2
Significant Other Observable Inputs (Level 2) | Gross foreign exchange contracts    
Assets    
Derivatives 25 21
Liabilities    
Derivatives 6 12
Significant Unobservable Inputs (Level 3) | Money market funds and highly liquid debt securities    
Assets    
Money market funds and highly liquid debt securities 0 0
Significant Unobservable Inputs (Level 3) | Government bonds    
Assets    
Other investments 0 0
Significant Unobservable Inputs (Level 3) | Equity investments    
Assets    
Other investments 0 0
Significant Unobservable Inputs (Level 3) | Gross foreign exchange contracts    
Assets    
Derivatives 0 0
Liabilities    
Derivatives $ 0 $ 0
v3.19.1
Fair Value Measurements and Financial Instruments - Schedule of financial instruments where the carrying amounts and fair values differ (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Carrying Value    
Fair value of financial instrument    
Long-term debt $ 5,990 $ 5,993
Fair Value | Fair Value, Inputs, Level 2    
Fair value of financial instrument    
Long-term debt $ 6,344 $ 6,159
v3.19.1
Claims, Lawsuits and Other Contingencies - Narrative (Details)
£ in Millions, $ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2019
USD ($)
Sep. 06, 2018
USD ($)
Oct. 03, 2017
NZD ($)
Dec. 20, 2016
GBP (£)
Jun. 29, 2015
NZD ($)
Mar. 31, 2019
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2018
USD ($)
Apr. 30, 2014
GBP (£)
Legal, Guarantees and Indemnifications                    
Revenue           $ 3,143,000,000 $ 3,090,000,000      
Maximum potential funding under commitments $ 76,000,000         76,000,000     $ 103,000,000  
Letters of credit outstanding 92,000,000         92,000,000     $ 83,000,000  
Potential Claim for Pension Advisory Services                    
Legal, Guarantees and Indemnifications                    
Estimate of possible loss 59,000,000         59,000,000       £ 45
Pending Litigation | Trustees Of Gleeds Pension Fund 2016                    
Legal, Guarantees and Indemnifications                    
Estimate of possible loss 92,000,000         92,000,000        
Damages sought | £       £ 70            
Pending Litigation | Lyttleton Port Company Limited                    
Legal, Guarantees and Indemnifications                    
Damages sought 127,000,000       $ 184          
Pending Litigation | Christchurch City Council                    
Legal, Guarantees and Indemnifications                    
Damages sought 365,000,000   $ 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                    
Guarantor obligations, current carrying value 16,000,000         16,000,000        
Loss contingency accrual payments           0        
Maximum potential funding under commitments 81,000,000         81,000,000        
Discontinued Operations, Disposed of by Sale | Tempo Business | Performance Guarantee                    
Legal, Guarantees and Indemnifications                    
Guarantor obligations, current carrying value 1,000,000         1,000,000        
Loss contingency accrual payments           0        
Maximum potential funding under commitments $ 179,000,000         $ 179,000,000        
v3.19.1
Segment Information (Details)
3 Months Ended
Mar. 31, 2019
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
v3.19.1
Guarantee of Registered Securities - Narrative (Details) - subsidiary
Mar. 31, 2019
Dec. 31, 2018
Dec. 03, 2018
Condensed Financial Statements, Captions [Line Items]      
Number of subsidiaries   2  
Aon plc      
Condensed Financial Statements, Captions [Line Items]      
Parent company's percentage ownership of guarantors 100.00%    
5.00% Senior notes due September 2020      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 5.00%    
8.205% Junior subordinated deferrable interest debentures due January 2027      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 8.205%    
6.25% Senior notes due September 2040      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 6.25%    
4.250% Senior notes due 2042      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 4.25%    
4.45% notes due 2043      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 4.45%    
4.00% notes due 2023      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 4.00%    
2.875% notes due 2026      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 2.875%    
3.50% Notes due June 2024      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 3.50%    
4.60% notes due May 2044      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 4.60%    
4.75% Notes Due May 2045      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 4.75%    
4.500% Senior Notes Due December 2028 | Senior Notes      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 4.50%   4.50%
2.80% Senior Notes Due 2021      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 2.80%    
3.875% due in December 2025      
Condensed Financial Statements, Captions [Line Items]      
Debt interest rate percentage (as a percent) 3.875%    
v3.19.1
Guarantee of Registered Securities - Condensed Consolidating Statement of Income (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Revenue    
Total revenue $ 3,143 $ 3,090
Expenses    
Compensation and benefits 1,584 1,616
Information technology 117 115
Premises 87 93
Depreciation of fixed assets 40 39
Amortization and impairment of intangible assets 97 110
Other general expenses 346 318
Total operating expenses 2,271 2,291
Operating income 872 799
Interest income 2 4
Interest expense (72) (70)
Intercompany interest income (expense) 0 0
Intercompany other income (expense) 0 0
Other income (expense) 0 (15)
Income from continuing operations before income taxes 802 718
Income tax expense (benefit) 126 114
Net income from continuing operations 676 604
Net income from discontinued operations 0 6
Net income (loss) before equity in earnings of subsidiaries 676 610
Equity in earnings of subsidiaries 0 0
Net income 676 610
Less: Net income attributable to noncontrolling interests 17 16
Net income attributable to Aon shareholders 659 594
Aon plc    
Revenue    
Total revenue 0 0
Expenses    
Compensation and benefits 20 19
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 1
Total operating expenses 20 20
Operating income (20) (20)
Interest income 0 0
Interest expense (46) (49)
Intercompany interest income (expense) 4 4
Intercompany other income (expense) 31 (53)
Other income (expense) 5 (25)
Income from continuing operations before income taxes (26) (143)
Income tax expense (benefit) (5) (16)
Net income from continuing operations (21) (127)
Net income from discontinued operations 0 0
Net income (loss) before equity in earnings of subsidiaries (21) (127)
Equity in earnings of subsidiaries 682 718
Net income 661 591
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders 661 591
Aon Corporation    
Revenue    
Total revenue 0 0
Expenses    
Compensation and benefits 8 1
Information technology 0 0
Premises 4 0
Depreciation of fixed assets 0 0
Amortization and impairment of intangible assets 0 0
Other general expenses (4) 0
Total operating expenses 8 1
Operating income (8) (1)
Interest income 9 14
Interest expense (28) (24)
Intercompany interest income (expense) (116) (128)
Intercompany other income (expense) (99) (5)
Other income (expense) (11) (6)
Income from continuing operations before income taxes (253) (150)
Income tax expense (benefit) (42) (27)
Net income from continuing operations (211) (123)
Net income from discontinued operations 0 0
Net income (loss) before equity in earnings of subsidiaries (211) (123)
Equity in earnings of subsidiaries 724 705
Net income 513 582
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders 513 582
Other Non-Guarantor Subsidiaries    
Revenue    
Total revenue 3,143 3,090
Expenses    
Compensation and benefits 1,556 1,596
Information technology 117 115
Premises 83 93
Depreciation of fixed assets 40 39
Amortization and impairment of intangible assets 97 110
Other general expenses 350 317
Total operating expenses 2,243 2,270
Operating income 900 820
Interest income 0 0
Interest expense (5) (7)
Intercompany interest income (expense) 112 124
Intercompany other income (expense) 68 58
Other income (expense) 8 13
Income from continuing operations before income taxes 1,083 1,008
Income tax expense (benefit) 173 157
Net income from continuing operations 910 851
Net income from discontinued operations 0 6
Net income (loss) before equity in earnings of subsidiaries 910 857
Equity in earnings of subsidiaries 513 582
Net income 1,423 1,439
Less: Net income attributable to noncontrolling interests 17 16
Net income attributable to Aon shareholders 1,406 1,423
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 (7) (10)
Interest expense 7 10
Intercompany interest income (expense) 0 0
Intercompany other income (expense) 0 0
Other income (expense) (2) 3
Income from continuing operations before income taxes (2) 3
Income tax expense (benefit) 0 0
Net income from continuing operations (2) 3
Net income from discontinued operations 0 0
Net income (loss) before equity in earnings of subsidiaries (2) 3
Equity in earnings of subsidiaries (1,919) (2,005)
Net income (1,921) (2,002)
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders $ (1,921) $ (2,002)
v3.19.1
Guarantee of Registered Securities - Condensed Consolidating Statement of Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Condensed Financial Statements, Captions [Line Items]    
Net income $ 676 $ 610
Less: Net income attributable to noncontrolling interests 17 16
Net income attributable to Aon shareholders 659 594
Change in fair value of financial instruments 7 14
Foreign currency translation adjustments 133 247
Postretirement benefit obligation 31 48
Total other comprehensive (loss) income 171 309
Equity in other comprehensive income of subsidiaries, net of tax 0 0
Less: Other comprehensive loss attributable to noncontrolling interests 2 3
Total other comprehensive income attributable to Aon shareholders 169 306
Comprehensive income (loss) attributable to Aon shareholders 828 900
Aon plc    
Condensed Financial Statements, Captions [Line Items]    
Net income 661 591
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders 661 591
Change in fair value of financial instruments 0 0
Foreign currency translation adjustments 0 0
Postretirement benefit obligation 0 0
Total other comprehensive (loss) income 0 0
Equity in other comprehensive income of subsidiaries, net of tax 167 309
Less: Other comprehensive loss attributable to noncontrolling interests 0 0
Total other comprehensive income attributable to Aon shareholders 167 309
Comprehensive income (loss) attributable to Aon shareholders 828 900
Aon Corporation    
Condensed Financial Statements, Captions [Line Items]    
Net income 513 582
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders 513 582
Change in fair value of financial instruments 2 3
Foreign currency translation adjustments 0 0
Postretirement benefit obligation 22 11
Total other comprehensive (loss) income 24 14
Equity in other comprehensive income of subsidiaries, net of tax 115 285
Less: Other comprehensive loss attributable to noncontrolling interests 0 0
Total other comprehensive income attributable to Aon shareholders 139 299
Comprehensive income (loss) attributable to Aon shareholders 652 881
Other Non-Guarantor Subsidiaries    
Condensed Financial Statements, Captions [Line Items]    
Net income 1,423 1,439
Less: Net income attributable to noncontrolling interests 17 16
Net income attributable to Aon shareholders 1,406 1,423
Change in fair value of financial instruments 5 11
Foreign currency translation adjustments 131 250
Postretirement benefit obligation 9 37
Total other comprehensive (loss) income 145 298
Equity in other comprehensive income of subsidiaries, net of tax 139 299
Less: Other comprehensive loss attributable to noncontrolling interests 2 3
Total other comprehensive income attributable to Aon shareholders 282 594
Comprehensive income (loss) attributable to Aon shareholders 1,688 2,017
Consolidation Adjustments    
Condensed Financial Statements, Captions [Line Items]    
Net income (1,921) (2,002)
Less: Net income attributable to noncontrolling interests 0 0
Net income attributable to Aon shareholders (1,921) (2,002)
Change in fair value of financial instruments 0 0
Foreign currency translation adjustments 2 (3)
Postretirement benefit obligation 0 0
Total other comprehensive (loss) income 2 (3)
Equity in other comprehensive income of subsidiaries, net of tax (421) (893)
Less: Other comprehensive loss attributable to noncontrolling interests 0 0
Total other comprehensive income attributable to Aon shareholders (419) (896)
Comprehensive income (loss) attributable to Aon shareholders $ (2,340) $ (2,898)
v3.19.1
Guarantee of Registered Securities - Condensed Consolidating Statement of Financial Position (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Mar. 31, 2018
Dec. 31, 2017
Current assets        
Cash and cash equivalents $ 600 $ 656    
Short-term investments 134 172    
Receivables, net 3,242 2,760    
Fiduciary assets 11,412 10,166    
Current intercompany receivables 0 0    
Other current assets 531 618    
Total current assets 15,919 14,372    
Goodwill 8,219 8,171    
Intangible assets, net 1,077 1,149    
Fixed assets, net 606 588    
Operating lease right-of-use assets 993      
Deferred tax assets 588 561    
Prepaid pension 1,224 1,133    
Non-current intercompany receivables 0 0    
Other non-current assets 509 448    
Investment in subsidiary 0 0    
Total assets 29,135 26,422    
Current liabilities        
Accounts payable and accrued liabilities 1,479 1,943    
Short-term debt and current portion of long-term debt 426 251    
Fiduciary liabilities 11,412 10,166    
Current intercompany payables 0 0    
Other current liabilities 1,220 936    
Total current liabilities 14,537 13,296    
Long-term debt 5,990 5,993    
Non-current operating lease liabilities 978      
Deferred tax liabilities 205 181    
Pension, other postretirement, and postemployment liabilities 1,590 1,636    
Non-current intercompany payables 0 0    
Other non-current liabilities 973 1,097    
Total liabilities 24,273 22,203    
Total Aon shareholders’ equity 4,775 4,151    
Noncontrolling interests 87 68    
Total equity 4,862 4,219 $ 5,385 $ 5,140
Total liabilities and equity 29,135 26,422    
Aon plc        
Current assets        
Cash and cash equivalents 0 0    
Short-term investments 0 0    
Receivables, net 0 0    
Fiduciary assets 0 0    
Current intercompany receivables 166 191    
Other current assets 0 0    
Total current assets 166 191    
Goodwill 0 0    
Intangible assets, net 0 0    
Fixed assets, net 0 0    
Operating lease right-of-use assets 0      
Deferred tax assets 94 94    
Prepaid pension 0 0    
Non-current intercompany receivables 401 403    
Other non-current assets 1 1    
Investment in subsidiary 9,283 8,433    
Total assets 9,945 9,122    
Current liabilities        
Accounts payable and accrued liabilities 351 274    
Short-term debt and current portion of long-term debt 248 250    
Fiduciary liabilities 0 0    
Current intercompany payables 339 213    
Other current liabilities 0 0    
Total current liabilities 938 737    
Long-term debt 4,228 4,231    
Non-current operating lease liabilities 0      
Deferred tax liabilities 0 0    
Pension, other postretirement, and postemployment liabilities 0 0    
Non-current intercompany payables 0 0    
Other non-current liabilities 4 3    
Total liabilities 5,170 4,971    
Total Aon shareholders’ equity 4,775 4,151    
Noncontrolling interests 0 0    
Total equity 4,775 4,151    
Total liabilities and equity 9,945 9,122    
Aon Corporation        
Current assets        
Cash and cash equivalents 746 862    
Short-term investments 47 56    
Receivables, net 0 0    
Fiduciary assets 0 0    
Current intercompany receivables 2,277 897    
Other current assets 10 16    
Total current assets 3,080 1,831    
Goodwill 0 0    
Intangible assets, net 0 0    
Fixed assets, net 0 0    
Operating lease right-of-use assets 114      
Deferred tax assets 488 467    
Prepaid pension 5 5    
Non-current intercompany receivables 262 261    
Other non-current assets 30 30    
Investment in subsidiary 19,919 19,132    
Total assets 23,898 21,726    
Current liabilities        
Accounts payable and accrued liabilities 75 70    
Short-term debt and current portion of long-term debt 175 0    
Fiduciary liabilities 0 0    
Current intercompany payables 13,283 11,875    
Other current liabilities 81 69    
Total current liabilities 13,614 12,014    
Long-term debt 1,762 1,762    
Non-current operating lease liabilities 153      
Deferred tax liabilities 0 0    
Pension, other postretirement, and postemployment liabilities 1,241 1,275    
Non-current intercompany payables 7,368 7,390    
Other non-current liabilities 115 167    
Total liabilities 24,253 22,608    
Total Aon shareholders’ equity (355) (882)    
Noncontrolling interests 0 0    
Total equity (355) (882)    
Total liabilities and equity 23,898 21,726    
Other Non-Guarantor Subsidiaries        
Current assets        
Cash and cash equivalents 563 575    
Short-term investments 87 116    
Receivables, net 3,242 2,760    
Fiduciary assets 11,412 10,166    
Current intercompany receivables 12,154 11,634    
Other current assets 521 602    
Total current assets 27,979 25,853    
Goodwill 8,219 8,171    
Intangible assets, net 1,077 1,149    
Fixed assets, net 606 588    
Operating lease right-of-use assets 879      
Deferred tax assets 150 144    
Prepaid pension 1,219 1,128    
Non-current intercompany receivables 7,202 7,225    
Other non-current assets 478 417    
Investment in subsidiary (355) (882)    
Total assets 47,454 43,793    
Current liabilities        
Accounts payable and accrued liabilities 1,762 2,380    
Short-term debt and current portion of long-term debt 3 1    
Fiduciary liabilities 11,412 10,166    
Current intercompany payables 975 634    
Other current liabilities 1,139 867    
Total current liabilities 15,291 14,048    
Long-term debt 0 0    
Non-current operating lease liabilities 825      
Deferred tax liabilities 349 325    
Pension, other postretirement, and postemployment liabilities 349 361    
Non-current intercompany payables 497 499    
Other non-current liabilities 854 927    
Total liabilities 18,165 16,160    
Total Aon shareholders’ equity 29,202 27,565    
Noncontrolling interests 87 68    
Total equity 29,289 27,633    
Total liabilities and equity 47,454 43,793    
Consolidation Adjustments        
Current assets        
Cash and cash equivalents (709) (781)    
Short-term investments 0 0    
Receivables, net 0 0    
Fiduciary assets 0 0    
Current intercompany receivables (14,597) (12,722)    
Other current assets 0 0    
Total current assets (15,306) (13,503)    
Goodwill 0 0    
Intangible assets, net 0 0    
Fixed assets, net 0 0    
Operating lease right-of-use assets 0      
Deferred tax assets (144) (144)    
Prepaid pension 0 0    
Non-current intercompany receivables (7,865) (7,889)    
Other non-current assets 0 0    
Investment in subsidiary (28,847) (26,683)    
Total assets (52,162) (48,219)    
Current liabilities        
Accounts payable and accrued liabilities (709) (781)    
Short-term debt and current portion of long-term debt 0 0    
Fiduciary liabilities 0 0    
Current intercompany payables (14,597) (12,722)    
Other current liabilities 0 0    
Total current liabilities (15,306) (13,503)    
Long-term debt 0 0    
Non-current operating lease liabilities 0      
Deferred tax liabilities (144) (144)    
Pension, other postretirement, and postemployment liabilities 0 0    
Non-current intercompany payables (7,865) (7,889)    
Other non-current liabilities 0 0    
Total liabilities (23,315) (21,536)    
Total Aon shareholders’ equity (28,847) (26,683)    
Noncontrolling interests 0 0    
Total equity (28,847) (26,683)    
Total liabilities and equity $ (52,162) $ (48,219)    
v3.19.1
Guarantee of Registered Securities - Condensed Consolidating Statement of Cash Flows (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Cash flows from operating activities    
Cash provided by (used for) operating activities $ 74 $ 140
Cash flows from investing activities    
Proceeds from investments 12 17
Payments for investments (14) (11)
Net sales (purchases) of short-term investments - non-fiduciary 41 415
Acquisition of businesses, net of cash acquired (15) (29)
Sale of businesses, net of cash sold 6 (1)
Capital expenditures (57) (45)
Cash provided by (used for) investing activities (27) 346
Cash flows from financing activities    
Share repurchase (100) (569)
Advances from (to) affiliates 0 0
Issuance of shares for employee benefit plans (98) (109)
Issuance of debt 871 808
Repayment of debt (694) (704)
Cash dividends to shareholders (96) (89)
Noncontrolling interests and other financing activities (23) 0
Cash used for financing activities (140) (663)
Effect of exchange rates on cash and cash equivalents 37 18
Net increase (decrease) in cash and cash equivalents (56) (159)
Cash and cash equivalents at beginning of period 656 756
Cash and cash equivalents at end of period 600 597
Aon plc    
Cash flows from operating activities    
Cash provided by (used for) operating activities (11) (21)
Cash flows from investing activities    
Proceeds from investments 0 0
Payments for investments 0 (1)
Net sales (purchases) of short-term investments - non-fiduciary 0 0
Acquisition of businesses, net of cash acquired 0 0
Sale of businesses, net of cash sold 0 0
Capital expenditures 0 0
Cash provided by (used for) investing activities 0 (1)
Cash flows from financing activities    
Share repurchase (100) (569)
Advances from (to) affiliates 305 418
Issuance of shares for employee benefit plans (98) (109)
Issuance of debt 384 431
Repayment of debt (384) (61)
Cash dividends to shareholders (96) (89)
Noncontrolling interests and other financing activities 0 0
Cash used for financing activities 11 21
Effect of exchange rates on cash and cash equivalents 0 0
Net increase (decrease) in cash and cash equivalents 0 (1)
Cash and cash equivalents at beginning of period 0 1
Cash and cash equivalents at end of period 0 0
Aon Corporation    
Cash flows from operating activities    
Cash provided by (used for) operating activities (34) 626
Cash flows from investing activities    
Proceeds from investments 8 10
Payments for investments (9) (5)
Net sales (purchases) of short-term investments - non-fiduciary 9 355
Acquisition of businesses, net of cash acquired 0 0
Sale of businesses, net of cash sold 0 0
Capital expenditures 0 0
Cash provided by (used for) investing activities 8 360
Cash flows from financing activities    
Share repurchase 0 0
Advances from (to) affiliates (265) (933)
Issuance of shares for employee benefit plans 0 0
Issuance of debt 485 375
Repayment of debt (310) (349)
Cash dividends to shareholders 0 0
Noncontrolling interests and other financing activities 0 0
Cash used for financing activities (90) (907)
Effect of exchange rates on cash and cash equivalents 0 0
Net increase (decrease) in cash and cash equivalents (116) 79
Cash and cash equivalents at beginning of period 862 2,524
Cash and cash equivalents at end of period 746 2,603
Other Non-Guarantor Subsidiaries    
Cash flows from operating activities    
Cash provided by (used for) operating activities 179 277
Cash flows from investing activities    
Proceeds from investments 4 7
Payments for investments (5) (6)
Net sales (purchases) of short-term investments - non-fiduciary 32 60
Acquisition of businesses, net of cash acquired (15) (29)
Sale of businesses, net of cash sold 6 (1)
Capital expenditures (57) (45)
Cash provided by (used for) investing activities (35) (14)
Cash flows from financing activities    
Share repurchase 0 0
Advances from (to) affiliates (172) (142)
Issuance of shares for employee benefit plans 0 0
Issuance of debt 2 2
Repayment of debt 0 (294)
Cash dividends to shareholders 0 0
Noncontrolling interests and other financing activities (23) 0
Cash used for financing activities (193) (434)
Effect of exchange rates on cash and cash equivalents 37 18
Net increase (decrease) in cash and cash equivalents (12) (153)
Cash and cash equivalents at beginning of period 575 793
Cash and cash equivalents at end of period 563 640
Consolidation Adjustments    
Cash flows from operating activities    
Cash provided by (used for) operating activities (60) (742)
Cash flows from investing activities    
Proceeds from investments 0 0
Payments for investments 0 1
Net sales (purchases) of short-term investments - non-fiduciary 0 0
Acquisition of businesses, net of cash acquired   0
Sale of businesses, net of cash sold 0 0
Capital expenditures 0 0
Cash provided by (used for) investing activities 0 1
Cash flows from financing activities    
Share repurchase 0 0
Advances from (to) affiliates 132 657
Issuance of shares for employee benefit plans 0 0
Issuance of debt 0 0
Repayment of debt 0 0
Cash dividends to shareholders 0 0
Noncontrolling interests and other financing activities 0 0
Cash used for financing activities 132 657
Effect of exchange rates on cash and cash equivalents 0 0
Net increase (decrease) in cash and cash equivalents 72 (84)
Cash and cash equivalents at beginning of period (781) (2,562)
Cash and cash equivalents at end of period $ (709) $ (2,646)
v3.19.1
Lease Commitments - Assets and Liabilities of Lessee (Details)
$ in Millions
Mar. 31, 2019
USD ($)
Assets  
Operating lease right-of-use assets $ 993
Finance lease assets 70
Total lease assets 1,063
Current lease liabilities  
Operating 214
Finance 27
Non-current lease liabilities  
Operating 978
Finance 50
Total lease liabilities $ 1,269
v3.19.1
Lease Commitments - Lease Costs (Details)
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
Leases [Abstract]  
Operating lease cost $ 68
Finance lease cost  
Amortization of leased assets 7
Interest on lease liabilities 1
Variable lease cost 6
Short-term lease cost 1
Sublease income (8)
Net lease cost $ 75
v3.19.1
Lease Commitments - Lease Maturity (Details)
$ in Millions
Mar. 31, 2019
USD ($)
Operating Lease Liabilities, Payments Due [Abstract]  
Remainder of 2019 $ 206
2020 244
2021 217
2022 192
2023 138
Thereafter 494
Total undiscounted future minimum lease payments 1,491
Imputed interest (161)
Present value of lease liabilities 1,330
Finance Lease Liabilities, Payments, Due [Abstract]  
Remainder of 2019 26
2020 27
2021 23
2022 2
2023 0
Thereafter 0
Total undiscounted future minimum lease payments 78
Imputed interest (1)
Present value of lease liabilities 77
Sublease Income, Payments Due [Abstract]  
Remainder of 2019 (26)
2020 (31)
2021 (31)
2022 (32)
2023 (14)
Thereafter 4
Total undiscounted future minimum lease payments (138)
Imputed interest 0
Present value of lease liabilities (138)
Total  
Remainder of 2019 206
2020 240
2021 209
2022 162
2023 124
Thereafter 490
Total undiscounted future minimum lease payments 1,431
Imputed interest 162
Present value of lease liabilities $ 1,269
v3.19.1
Lease Commitments - Lease Terms and Assumptions (Details)
Mar. 31, 2019
Weighted average remaining lease term (years)  
Operating leases 8 years
Finance leases 2 years 8 months 12 days
Weighted average discount rate  
Operating leases 3.30%
Finance leases 2.50%
v3.19.1
Lease Commitments - Cash Flow of Lessee (Details)
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
Cash paid for amounts included in the measurement of lease liabilities  
Operating cash flows from operating leases $ 52
ROU assets obtained in exchange for new operating lease liabilities $ 26