AON PLC, 10-Q filed on 4/29/2022
Quarterly Report
v3.22.1
Cover - shares
 3 Months Ended
Mar. 31, 2022
Apr. 28, 2022
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2022  
Document Transition Report false  
Entity File Number 1-7933  
Entity Registrant Name Aon plc  
Entity Incorporation, State or Country Code L2  
Entity Tax Identification Number 98-1539969  
Entity Address, Address Line One Metropolitan Building, James Joyce Street  
Entity Address, City or Town Dublin 1  
Entity Address, Country IE  
Entity Address, Postal Zip Code D01 K0Y8  
City Area Code 1  
Local Phone Number 266 6000  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   212,383,902
Entity Central Index Key 0000315293  
Amendment Flag false  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q1  
Current Fiscal Year End Date --12-31  
Class A Ordinary Shares $0.01 nominal value    
Entity Information [Line Items]    
Title of 12(b) Security Class A Ordinary Shares $0.01 nominal value  
Trading Symbol AON  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 4.00% Senior Notes due 2023    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 4.00% Senior Notes due 2023  
Trading Symbol AON23  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 3.50% Senior Notes due 2024    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 3.50% Senior Notes due 2024  
Trading Symbol AON24  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 3.875% Senior Notes due 2025    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 3.875% Senior Notes due 2025  
Trading Symbol AON25  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 2.875% Senior Notes due 2026    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 2.875% Senior Notes due 2026  
Trading Symbol AON26  
Security Exchange Name NYSE  
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.85% Senior Notes due 2027    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.85% Senior Notes due 2027  
Trading Symbol AON27  
Security Exchange Name NYSE  
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.05% Senior Notes due 2031    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon Corporation and Aon Global Holdingsplc’s 2.05% Senior Notes due 2031  
Trading Symbol AON31  
Security Exchange Name NYSE  
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.60% Senior Notes due 2031    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon Corporation and Aon Global Holdingsplc’s 2.60% Senior Notes due 2031  
Trading Symbol AON31A  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 4.25% Senior Notes due 2042    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 4.25% Senior Notes due 2042  
Trading Symbol AON42  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 4.45% Senior Notes due 2043    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 4.45% Senior Notes due 2043  
Trading Symbol AON43  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 4.60% Senior Notes due 2044    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 4.60% Senior Notes due 2044  
Trading Symbol AON44  
Security Exchange Name NYSE  
Guarantees of Aon plc’s 4.75% Senior Notes due 2045    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon plc’s 4.75% Senior Notes due 2045  
Trading Symbol AON45  
Security Exchange Name NYSE  
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.90% Senior Notes due 2051    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon Corporation and Aon Global Holdingsplc’s 2.90% Senior Notes due 2051  
Trading Symbol AON51  
Security Exchange Name NYSE  
Guarantees of Aon Corporation and Aon Global Holdings plc’s 3.90% Senior Notes due 2052    
Entity Information [Line Items]    
Title of 12(b) Security Guarantees of Aon Corporation and Aon Global Holdingsplc’s 3.90% Senior Notes due 2052  
Trading Symbol AON52  
Security Exchange Name NYSE  
v3.22.1
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Revenue    
Total revenue $ 3,670 $ 3,525
Expenses    
Compensation and benefits 1,767 1,719
Information technology 123 114
Premises 72 77
Depreciation of fixed assets 38 41
Amortization and impairment of intangible assets 28 40
Other general expense 275 289
Total operating expenses 2,303 2,280
Operating income 1,367 1,245
Interest income 3 3
Interest expense (91) (79)
Other income (expense) 25 (2)
Income before income taxes 1,304 1,167
Income tax expense 256 234
Net income 1,048 933
Less: Net income attributable to noncontrolling interests 25 20
Net income attributable to Aon shareholders $ 1,023 $ 913
Basic net income per share attributable to Aon shareholders (in dollars per share) $ 4.75 $ 4.02
Diluted net income per share attributable to Aon shareholders (in dollars per share) $ 4.73 $ 4.00
Weighted average ordinary shares outstanding - basic (in shares) 215.3 227.1
Weighted average ordinary shares outstanding - diluted (in shares) 216.4 228.1
v3.22.1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Comprehensive Income [Abstract]    
Net income $ 1,048 $ 933
Less: Net income attributable to noncontrolling interests 25 20
Net income attributable to Aon shareholders 1,023 913
Other comprehensive income (loss), net of tax:    
Change in fair value of financial instruments 1 11
Foreign currency translation adjustments (7) (70)
Postretirement benefit obligation 33 29
Total other comprehensive income (loss) 27 (30)
Less: Other comprehensive income (loss) attributable to noncontrolling interests (1) 0
Total other comprehensive income (loss) attributable to Aon shareholders 28 (30)
Comprehensive income attributable to Aon shareholders $ 1,051 $ 883
v3.22.1
Condensed Consolidated Statements of Financial Position - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Current assets    
Cash and cash equivalents $ 595 $ 544
Short-term investments 455 292
Receivables, net 3,625 3,094
Fiduciary assets 15,277 14,386
Other current assets 593 716
Total current assets 20,545 19,032
Goodwill 8,496 8,434
Intangible assets, net 530 492
Fixed assets, net 515 529
Operating lease right-of-use assets 754 786
Deferred tax assets 770 766
Prepaid pension 1,361 1,366
Other non-current assets 520 512
Total assets 33,491 31,917
Current liabilities    
Accounts payable and accrued liabilities 1,728 2,192
Short-term debt and current portion of long-term debt 599 1,164
Fiduciary liabilities 15,277 14,386
Other current liabilities 1,585 1,331
Total current liabilities 19,189 19,073
Long-term debt 9,685 8,228
Non-current operating lease liabilities 736 772
Deferred tax liabilities 399 401
Pension, other postretirement, and postemployment liabilities 1,320 1,375
Other non-current liabilities 871 910
Total liabilities 32,200 30,759
Equity    
Ordinary shares - $0.01 nominal value Authorized: 500.0 shares (issued: 2022 - 212.9; 2021 - 214.8) 2 2
Additional paid-in capital 6,627 6,624
Accumulated deficit (1,609) (1,694)
Accumulated other comprehensive loss (3,843) (3,871)
Total Aon shareholders' equity 1,177 1,061
Noncontrolling interests 114 97
Total equity 1,291 1,158
Total liabilities and equity $ 33,491 $ 31,917
v3.22.1
Condensed Consolidated Statements of Financial Position (Parenthetical) - $ / shares
Mar. 31, 2022
Dec. 31, 2021
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) 500,000,000.0 500,000,000.0
Common stock, issued shares (in shares) 212,900,000 214,800,000
v3.22.1
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)
shares in Millions, $ in Millions
Total
Ordinary Shares and Additional Paid-in Capital
Retained Earnings (Accumulated Deficit)
Accumulated  Other Comprehensive Loss, Net of Tax
Non- controlling Interests
Beginning Balance (in shares) at Dec. 31, 2020   225.5      
Beginning Balance at Dec. 31, 2020 $ 3,583 $ 6,314 $ 1,042 $ (3,861) $ 88
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 933   913   20
Shares issued - employee stock compensation plans (in shares)   0.9      
Shares issued - employee stock compensation plans (87) $ (87)      
Shares purchased (in shares)   (0.2)      
Shares purchased (50)   (50)    
Share-based compensation expense 131 $ 131      
Dividends to shareholders (104)   (104)    
Net change in fair value of financial instruments 11     11  
Net foreign currency translation adjustments (70)     (70)  
Net postretirement benefit obligation 29     29  
Purchases of subsidiary shares from noncontrolling interests (14) $ (8)     (6)
Dividends paid to noncontrolling interests on subsidiary common stock (1)       (1)
Ending Balance (in shares) at Mar. 31, 2021   226.2      
Ending Balance at Mar. 31, 2021 $ 4,361 $ 6,350 1,801 (3,891) 101
Beginning Balance (in shares) at Dec. 31, 2021 214.8 214.8      
Beginning Balance at Dec. 31, 2021 $ 1,158 $ 6,626 (1,694) (3,871) 97
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 1,048   1,023   25
Shares issued - employee stock compensation plans (in shares)   0.9      
Shares issued - employee stock compensation plans (116) $ (116)      
Shares purchased (in shares)   (2.8)      
Shares purchased (828)   (828)    
Share-based compensation expense 119 $ 119      
Dividends to shareholders (110)   (110)    
Net change in fair value of financial instruments 1     1  
Net foreign currency translation adjustments (7)     (6) (1)
Net postretirement benefit obligation 33     33  
Dividends paid to noncontrolling interests on subsidiary common stock $ (7)       (7)
Ending Balance (in shares) at Mar. 31, 2022 212.9 212.9      
Ending Balance at Mar. 31, 2022 $ 1,291 $ 6,629 $ (1,609) $ (3,843) $ 114
v3.22.1
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]    
Dividends (in dollars per share) $ 0.51 $ 0.46
v3.22.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Cash flows from operating activities    
Net income $ 1,048,000,000 $ 933,000,000
Adjustments to reconcile net income to cash provided by operating activities:    
Gain from sales of businesses (25,000,000) 0
Depreciation of fixed assets 38,000,000 41,000,000
Amortization and impairment of intangible assets 28,000,000 40,000,000
Share-based compensation expense 119,000,000 131,000,000
Deferred income taxes (18,000,000) 19,000,000
Change in assets and liabilities:    
Receivables, net (544,000,000) (485,000,000)
Accounts payable and accrued liabilities (449,000,000) (356,000,000)
Current income taxes 153,000,000 142,000,000
Pension, other postretirement and postemployment liabilities (27,000,000) (59,000,000)
Other assets and liabilities 140,000,000 155,000,000
Cash provided by operating activities 463,000,000 561,000,000
Cash flows from investing activities    
Proceeds from investments 45,000,000 11,000,000
Payments for investments (9,000,000) (18,000,000)
Net sales (purchases) of short-term investments - non fiduciary (164,000,000) 138,000,000
Acquisition of businesses, net of cash and funds held on behalf of clients (134,000,000) 0
Sale of businesses, net of cash and funds held on behalf of clients 22,000,000 0
Capital expenditures (23,000,000) (29,000,000)
Cash provided by (used for) investing activities (263,000,000) 102,000,000
Cash flows from financing activities    
Share repurchase (828,000,000) (50,000,000)
Issuance of shares for employee benefit plans (116,000,000) (87,000,000)
Issuance of debt 3,128,000,000 250,000,000
Repayment of debt (2,208,000,000) (650,000,000)
Increase in fiduciary liabilities, net of fiduciary receivables 647,000,000 28,000,000
Cash dividends to shareholders (110,000,000) (104,000,000)
Noncontrolling interests and other financing activities (13,000,000) (68,000,000)
Cash provided by (used for) financing activities 500,000,000 (681,000,000)
Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients (50,000,000) (34,000,000)
Net increase (decrease) in cash and cash equivalents and funds held on behalf of clients 650,000,000 (52,000,000)
Cash, cash equivalents and funds held on behalf of clients at beginning of period 6,645,000,000 6,573,000,000
Cash, cash equivalents and funds held on behalf of clients at end of period 7,295,000,000 6,521,000,000
Reconciliation of cash and cash equivalents and funds held on behalf of clients:    
Cash and cash equivalents 595,000,000 822,000,000
Funds held on behalf of clients 6,700,000,000 5,699,000,000
Total cash and cash equivalents and funds held on behalf of clients 7,295,000,000 6,521,000,000
Supplemental disclosures:    
Interest paid 22,000,000 36,000,000
Income taxes paid, net of refunds $ 121,000,000 $ 74,000,000
v3.22.1
Basis of Presentation
 3 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP. The Condensed Consolidated 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 Condensed Consolidated Financial Statements include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows for all periods presented.
Certain information and disclosures normally included in the Financial Statements prepared in accordance with U.S. GAAP have been condensed or omitted. The Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The results for the three months ended March 31, 2022 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2022, particularly in light of the continuing effect of the COVID-19 pandemic.
Use of Estimates
The preparation of the accompanying Condensed Consolidated 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 Condensed Consolidated Financial Statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, foreign currency exchange rate movements, and the COVID-19 pandemic increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the Condensed Consolidated Financial Statements in future periods.
Revision of Previously Issued Financial Statements
During the fourth quarter of 2021, the Company identified and corrected an immaterial presentation error related to Funds held on behalf of clients in the Condensed Consolidated Statements of Cash Flows. The Company made appropriate revisions to its Condensed Consolidated Statements of Cash Flows for historical periods. Further information is contained in Note 1 “Basis of Presentation” of the Notes to Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2021.
v3.22.1
Accounting Principles and Practices
 3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
Accounting Principles and Practices Accounting Principles and PracticesAll issued, but not yet effective, guidance has been deemed not applicable or not significant to the Condensed Consolidated Financial Statements.
v3.22.1
Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2022
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,
20222021
Commercial Risk Solutions$1,719 $1,640 
Reinsurance Solutions976 922 
Health Solutions638 615 
Wealth Solutions345 355 
Eliminations(8)(7)
Total revenue$3,670 $3,525 
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,
20222021
United States$1,417 $1,308 
Americas other than United States276 250 
United Kingdom528 530 
Ireland29 33 
Europe, Middle East, & Africa other than United Kingdom and Ireland1,058 1,091 
Asia Pacific362 313 
Total revenue$3,670 $3,525 
Contract Costs
An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):
Three Months Ended March 31,
20222021
Balance at beginning of period$361 $339 
Additions348 346 
Amortization(457)(443)
Impairment— — 
Foreign currency translation and other2 (1)
Balance at end of period$254 $241 
An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):
Three Months Ended March 31,
20222021
Balance at beginning of period$179 $184 
Additions15 13 
Amortization(12)(12)
Impairment— — 
Foreign currency translation and other2 — 
Balance at end of period$184 $185 
v3.22.1
Cash and Cash Equivalents and Short-Term Investments
 3 Months Ended
Mar. 31, 2022
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, 2022, Cash and cash equivalents and Short-term investments were $1,050 million compared to $836 million at December 31, 2021, an increase of $214 million. Of the total balances, $163 million and $160 million were restricted as to their use at March 31, 2022 and December 31, 2021, respectively. Included within Short-term investments as of March 31, 2022 and December 31, 2021, were £84.3 million ($111.1 million at March 31, 2022 exchange rates and $112.8 million at December 31, 2021 exchange rates) of operating funds required to be held by the Company in the U.K. by the FCA, a U.K.-based regulator.
v3.22.1
Other Financial Data
 3 Months Ended
Mar. 31, 2022
Other Financial Data [Abstract]  
Other Financial Data Other Financial Data
Condensed Consolidated Statements of Income Information
Other Income (Expense)
Other income (expense) consists of the following (in millions):
Three Months Ended March 31,
20222021
Foreign currency remeasurement$(28)$4 
Pension and other postretirement(3)6 
Equity earnings1 1 
Gain from sales of businesses25 — 
Financial instruments and other30 (13)
Total
$25 $(2)
Condensed Consolidated Statements of Financial Position Information
Allowance for Doubtful Accounts
Changes in the net carrying amount of allowance for doubtful accounts are as follows (in millions):
Three Months Ended March 31,
20222021
Balance at beginning of period$90 $98 
Provision6 6 
Accounts written off, net of recoveries(3)(4)
Foreign currency translation and other— 1 
Balance at end of period$93 $101 
Other Current Assets
The components of Other current assets are as follows (in millions):
As ofMarch 31,
2022		December 31,
2021
Costs to fulfill contracts with customers (1)
$254 $361 
Prepaid expenses132 137 
Taxes receivable48 53 
Other159 165 
Total$593 $716 
(1)Refer to Note 3 “Revenue from Contracts with Customers” for further information.
Other Non-Current Assets
The components of Other non-current assets are as follows (in millions):
As of March 31,
2022		December 31,
2021
Costs to obtain contracts with customers (1)
$184 $179 
Taxes receivable93 95 
Leases57 63 
Investments62 64 
Other124 111 
Total$520 $512 
(1)Refer to Note 3 “Revenue from Contracts with Customers” for further information.
Other Current Liabilities
The components of Other current liabilities are as follows (in millions):
As ofMarch 31,
2022		December 31,
2021
Deferred revenue (1)
$323 $321 
Taxes payable269 149 
Leases207 213 
Other786 648 
Total
$1,585 $1,331 
(1)During the three months ended March 31, 2022, revenue of $203 million was recognized in the Condensed Consolidated Statements of Income. During the three months ended March 31, 2021, revenue of $171 million was recognized in the Condensed Consolidated Statements of Income.
Other Non-Current Liabilities
The components of Other non-current liabilities are as follows (in millions):
As ofMarch 31,
2022		December 31,
2021
Taxes payable (1)
$631 $609 
Leases42 46 
Deferred revenue34 70 
Compensation and benefits57 58 
Other107 127 
Total
$871 $910 
(1)Includes $145 million for the non-current portion of the one-time mandatory transition tax on accumulated foreign earnings as of March 31, 2022 and December 31, 2021.
v3.22.1
Acquisitions and Dispositions of Businesses
 3 Months Ended
Mar. 31, 2022
Business Combination and Asset Acquisition [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, 2022 and no acquisitions during the three months ended March 31, 2021. The following table includes the preliminary fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisition (in millions):
March 31,
2022
Consideration transferred
Cash$134 
Deferred and contingent consideration3 
Aggregate consideration transferred$137 
Assets acquired
Goodwill74 
Intangible assets65 
Other assets6 
Total assets acquired145 
Liabilities assumed:
Total liabilities assumed8 
Net assets acquired$137 
The results of operations of this acquisition are included in the Condensed Consolidated Financial Statements as of the acquisition date. The Company’s results of operations would not have been materially different if this acquisition had been reported from the beginning of the period in which it was acquired.
2022 Acquisitions
On March 1, 2022, the Company completed the acquisition of Tyche, an actuarial software platform based in the U.K.
2021 Acquisitions
On December 22, 2021, the Company completed the acquisition of 100% of the share capital of For Welfare S.r.l, a company focused on bancassurance programs in Italy.
On September 1, 2021, the Company completed the acquisition of the remaining 51% of Aon India Insurance Brokers Limited (formerly known as Anviti Insurance Brokers Private Limited). Prior to the acquisition date, the Company accounted for its 49% interest in Anviti as an equity-method investment. The acquisition-date fair value of the previous equity interest was $15 million and was included in the measurement of consideration transferred. There was no significant impact as a result of remeasuring the carrying value of the Company’s prior equity interest in Anviti held before the business combination.
Completed Dispositions
The Company completed two dispositions during the three months ended March 31, 2022 and no dispositions during the three months ended March 31, 2021.
The pretax gains recognized related to dispositions were $25 million for the three months ended March 31, 2022. There were no pretax gains recognized related to dispositions for the three months ended March 31, 2021. Gains recognized as a result of a disposition are included in Other income in the Condensed Consolidated Statements of Income.
v3.22.1
Goodwill and Other Intangible Assets
 3 Months Ended
Mar. 31, 2022
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, 2022 are as follows (in millions):
Balance as of December 31, 2021$8,434 
Goodwill related to current year acquisitions74 
Goodwill related to disposals(7)
Foreign currency translation and other(5)
Balance as of March 31, 2022$8,496 
Other intangible assets by asset class are as follows (in millions):
 March 31, 2022December 31, 2021
 Gross Carrying AmountAccumulated
Amortization and Impairment		Net Carrying AmountGross Carrying AmountAccumulated
Amortization and Impairment		Net Carrying Amount
Customer-related and contract-based$2,307 $1,866 $441 $2,289 $1,848 $441 
Tradenames 14 14 — 14 13 1 
Technology and other447 358 89 407 357 50 
Total$2,768 $2,238 $530 $2,710 $2,218 $492 
The estimated future amortization for finite-lived intangible assets as of March 31, 2022 is as follows (in millions):
Remainder of 2022$81 
202397 
202482 
202569 
202648 
202733 
Thereafter120 
Total$530 
v3.22.1
Debt
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Debt Debt
Notes
On February 28, 2022, Aon Corporation, a Delaware corporation, and Aon Global Holdings plc, a public limited company formed under the laws of England and Wales, both wholly owned subsidiaries of the Company, co-issued $600 million of 2.85% Senior Notes due May 2027 and $900 million of 3.90% Senior Notes due February 2052. The Company intends to use the net proceeds from the offering for general corporate purposes.
On December 2, 2021, Aon Corporation and Aon Global Holdings plc, co-issued $500 million of 2.60% Senior Notes set to mature on December 2, 2031. The Company intends to use the net proceeds of the offering for general corporate purposes.
In November 2021, the Company’s $500 million 2.20% Senior Notes due November 2022 were classified as Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position as the date of maturity was within one year.
On August 23, 2021, Aon Corporation and Aon Global Holdings plc, co-issued $400 million of 2.05% Senior Notes due August 2031 and $600 million of 2.90% Senior Notes due August 2051. The Company intends to use the net proceeds of the offering for general corporate purposes.
On January 13, 2021, Aon Global Limited, a limited company organized under the laws of England and Wales and a wholly owned subsidiary of the Company, issued an irrevocable notice of redemption to holders of its 2.80% Senior Notes for the redemption of all $400 million outstanding aggregate principal amount of the notes, which were set to mature in March 2021 and classified as Short-term debt and current portion of long-term debt as of December 31, 2020. The redemption date was on February 16, 2021 and resulted in an insignificant loss due to extinguishment.
Revolving Credit Facilities
As of March 31, 2022, Aon had two primary committed credit facilities outstanding: its $1.0 billion multi-currency U.S. credit facility expiring in September 2026 and its $750 million multi-currency U.S. credit facility expiring in October 2023. In aggregate, these two facilities provide $1.75 billion in available credit.
Each of these primary committed credit facilities includes customary representations, warranties, and covenants, including financial covenants that require Aon to maintain specified ratios of adjusted consolidated EBITDA to consolidated interest expense and consolidated debt to adjusted consolidated EBITDA, in each case, tested quarterly. At March 31, 2022, Aon did not have borrowings under either of these primary committed credit facilities, and was in compliance with the financial covenants and all other covenants contained therein during the rolling 12 months ended March 31, 2022.
Commercial Paper
Aon Corporation has established a U.S. commercial paper program (the “U.S. Program”) and Aon Global Holdings plc has established a European multi-currency commercial paper program (the “European Program” and, together with the U.S. Program, the “Commercial Paper Programs”). Commercial paper may be issued in aggregate principal amounts of up to $1 billion under the U.S. Program and €625 million ($686 million at March 31, 2022 exchange rates) under the European Program, not to exceed the amount of the Company’s committed credit facilities, which was $1.75 billion at March 31, 2022. The U.S. Program is fully and unconditionally guaranteed by Aon plc, Aon Global Limited, and Aon Global Holdings plc and the European Program is fully and unconditionally guaranteed by Aon plc, Aon Global Limited, and Aon Corporation.
Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position, is as follows (in millions):
March 31, 2022December 31, 2021
Commercial paper outstanding$100 $665 
The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages):
Three Months Ended March 31,
20222021
Weighted average commercial paper outstanding$571 $17 
Weighted average interest rate of commercial paper outstanding(0.16)%0.19 %
v3.22.1
Income Taxes
 3 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The effective tax rate on Net income was 19.6% for the three months ended March 31, 2022. The effective tax rate on Net income was 20.1% for the three months ended March 31, 2021.
For the three months ended March 31, 2022 and March 31, 2021, the tax rate was primarily driven by the geographical distribution of income and certain discrete items, primarily the favorable impacts of share-based payments.
v3.22.1
Shareholders' Equity
 3 Months Ended
Mar. 31, 2022
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, June 2017, November 2020, and by $7.5 billion in February 2022 for a total of $27.5 billion in repurchase authorizations.
Under the Repurchase Program, the Company’s class A ordinary shares may be repurchased through the open market or in privately negotiated transactions, from time to time, based on prevailing market conditions, and will be funded from available capital.
The following table summarizes the Company’s share repurchase activity (in millions, except per share data):
Three Months Ended March 31,
20222021
Shares repurchased2.8 0.2 
Average price per share$294.47 $217.70 
Repurchase costs recorded to retained earnings
$828 $50 
At March 31, 2022, the remaining authorized amount for share repurchases under the Repurchase Program was approximately $8.4 billion. Under the Repurchase Program, the Company has repurchased a total of 152.4 million shares for an aggregate cost of approximately $19.1 billion.
Weighted Average Ordinary Shares
Weighted average ordinary shares outstanding are as follows (in millions):
 Three Months Ended March 31,
 20222021
Basic weighted average ordinary shares outstanding215.3 227.1 
Dilutive effect of potentially issuable shares1.1 1.0 
Diluted weighted average ordinary shares outstanding216.4 228.1 
Potentially issuable shares are not included in the computation of Diluted net income per share attributable to Aon shareholders if their inclusion would be antidilutive. There were 0.9 million shares excluded from the calculation for the three months ended March 31, 2022 and 0.1 million shares excluded from the calculation for the three months ended March 31, 2021.
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, 2021$2 $(1,333)$(2,540)(3,871)
Other comprehensive income (loss) before reclassifications, net— (6)10 4 
Amounts reclassified from accumulated other comprehensive income
Amounts reclassified from accumulated other comprehensive income1 — 31 32 
Tax expense— — (8)(8)
Amounts reclassified from accumulated other comprehensive income, net (3)
1 — 23 24 
Net current period other comprehensive income (loss)
1 (6)33 28 
Balance at March 31, 2022$3 $(1,339)$(2,507)$(3,843)
 
Change in Fair Value of Financial Instruments (1)
Foreign Currency Translation Adjustments
Postretirement Benefit Obligation (2)
Total
Balance at December 31, 2020$1 $(1,045)$(2,817)$(3,861)
Other comprehensive income (loss) before reclassifications, net10 (70)2 (58)
Amounts reclassified from accumulated other comprehensive income
Amounts reclassified from accumulated other comprehensive income 1 — 36 37 
Tax expense— — (9)(9)
Amounts reclassified from accumulated other comprehensive income, net (3)
1 — 27 28 
Net current period other comprehensive income (loss)
11 (70)29 (30)
Balance at March 31, 2021$12 $(1,115)$(2,788)$(3,891)
(1)Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Total revenue, Interest expense, and Compensation and benefits in the Condensed Consolidated Statements of Income. Refer to Note 13 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity.
(2)Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense) in the Condensed Consolidated Statements of Income.
(3)It is the Company’s policy to release income tax effects from Accumulated other comprehensive loss using the portfolio approach.
v3.22.1
Employee Benefits
 3 Months Ended
Mar. 31, 2022
Retirement Benefits [Abstract]  
Employee Benefits Employee Benefits
The following table provides the components of the net periodic (benefit) cost recognized in the Condensed Consolidated Statements of Income for Aon’s significant U.K., U.S., and other major pension plans, which are located in the Netherlands and Canada. Service cost is reported in Compensation and benefits and all other components are reported in Other income (expense) as follows (in millions):
 Three Months Ended March 31,
 U.K.U.S.Other
 202220212022202120222021
Service cost$— $— $— $— $— $— 
Interest cost23 16 17 14 5 3 
Expected return on plan assets, net of administration expenses(36)(34)(27)(32)(9)(8)
Amortization of prior-service cost1 1 — — — — 
Amortization of net actuarial loss7 8 16 19 4 4 
Net periodic (benefits) cost(5)(9)6 1 — (1)
Loss on pension settlement— — 1 — — — 
Total net periodic (benefit) cost$(5)$(9)$7 $1 $— $(1)
In the first quarter of 2022, the Company recognized a non-cash settlement charge of approximately $1 million. Settlements from a certain U.S. pension plan exceeded the plan’s service and interest cost. This triggered settlement accounting which required the immediate recognition of a portion of the accumulated losses associated with the plan.
Contributions
Assuming no additional contributions are agreed to with, or required by, the pension plan trustees, the Company expects to make total cash contributions of approximately $7 million, $52 million, and $15 million, (at December 31, 2021 exchange rates) to its significant U.K., U.S., and other major pension plans, respectively, during 2022. The following table summarizes contributions made to the Company’s significant pension plans (in millions):
Three Months Ended March 31,
20222021
Contributions to U.K. pension plans$3 $4 
Contributions to U.S. pension plans18 38 
Contributions to other major pension plans8 8 
Total contributions$29 $50 
v3.22.1
Share-Based Compensation Plans
 3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Plans Share-Based Compensation Plans
The following table summarizes share-based compensation expense recognized in the Condensed Consolidated Statements of Income in Compensation and benefits (in millions):
Three Months Ended March 31,
 20222021
Restricted share units$87 $66 
Performance share awards27 61 
Employee share purchase plans4 4 
Total share-based compensation expense
$119 $131 
Restricted Share Units
RSUs generally vest between three and five years. The fair value of RSUs is based upon the market value of the Company’s class A ordinary shares at the date of grant. With certain limited exceptions, any break in continuous employment will cause the forfeiture of all non-vested awards. Compensation expense associated with RSUs is recognized on a straight-line basis over the requisite service period. Dividend equivalents are paid on certain RSUs, based on the initial grant amount.
The following table summarizes the status of the Company’s RSUs (shares in thousands, except fair value):
 Three Months Ended March 31,
20222021
 Shares
Fair Value (1)
Shares
Fair Value (1)
Non-vested at beginning of period3,075 $203 3,309 $163 
Granted428 $307 372 $226 
Vested(396)$189 (452)$160 
Forfeited(53)$207 (70)$166 
Non-vested at end of period3,055 $219 3,159 $171 
(1)Represents per share weighted average fair value of award at date of grant.
Unamortized deferred compensation expense amounted to $478 million as of March 31, 2022, with a remaining weighted average amortization period of approximately 2.0 years.
Performance Share Awards
The vesting of PSAs is contingent upon meeting a cumulative level of earnings per share related performance over a three-year period. The actual issuance of shares may range from 0-200% of the target number of PSAs granted, based on the terms of the plan and level of achievement of the related performance target. The grant date fair value of PSAs is based upon the market price of the Company’s class A ordinary shares at the date of grant. The performance conditions are not considered in the determination of the grant date fair value for these awards. Compensation expense is recognized over the performance period based on management’s estimate of the number of units expected to vest. Management evaluates its estimate of the actual number of shares expected to be issued at the end of the programs on a quarterly basis. The cumulative effect of the change in estimate is recognized in the period of change as an adjustment to Compensation and benefits in the Condensed Consolidated Statements of Income, if necessary. Dividend equivalents are not paid on PSAs.
The following table summarizes the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the three months ended March 31, 2022 and the years ended December 31, 2021 and 2020, respectively (shares in thousands and dollars in millions, except fair value per share):
 March 31,
2022		December 31,
2021		December 31,
2020
Target PSAs granted during period292 382 500 
Weighted average fair value per share at date of grant$313 $225 $163 
Number of shares that would be issued based on current performance levels292 730 962 
Unamortized expense, based on current performance levels$91 $106 $38 
v3.22.1
Derivatives and Hedging
 3 Months Ended
Mar. 31, 2022
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 two years. These derivatives are accounted for as hedges, and changes in fair value are recorded each period in Other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income.
The Company also uses foreign exchange derivatives, typically forward contracts and options, to economically hedge the currency exposure of the Company’s global liquidity profile, including monetary assets or liabilities that are denominated in a non-functional currency of an entity, typically on a rolling 90-day basis, but may be for up to one year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income (expense) in the Condensed Consolidated Statements of Income.
The notional and fair values of derivative instruments are as follows (in millions):
 Notional Amount
Net Amount of Derivative Assets
 Presented in the Statements of Financial Position (1)
Net Amount of Derivative Liabilities
 Presented in the Statements of Financial Position
 March 31,
2022		December 31,
2021		March 31,
2022		December 31,
2021		March 31,
2022		December 31,
2021
Foreign exchange contracts      
Accounted for as hedges$631 $629 $26 $27 $— $— 
Not accounted for as hedges (2)
402 412 2 2 — — 
Total$1,033 $1,041 $28 $29 $— $— 
(1)Included within Other current assets ($17 million at March 31, 2022 and $21 million at December 31, 2021) or Other non-current assets ($11 million at March 31, 2022 and $8 million at December 31, 2021).
(2)These contracts typically are for 90-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 recognized in the Condensed Consolidated Financial Statements are as follows (in millions):
 Three Months Ended March 31,
 20222021
Gain recognized in Accumulated other comprehensive loss$1 $13 
The amounts of derivative gains (losses) reclassified from Accumulated other comprehensive loss to the Condensed Consolidated Statements of Income are as follows (in millions):
Three Months Ended March 31,
20222021
Total revenue$(1)$(1)
The Company estimates that approximately $3 million of pretax gains currently included within Accumulated other comprehensive loss will be reclassified into earnings in the next twelve months.
During the three months ended March 31, 2022 and March 31, 2021, the Company recorded a gain of $32 million and a loss of $7 million, respectively, in Other income (expense) for foreign exchange derivatives not designated or qualifying as hedges.
v3.22.1
Fair Value Measurements and Financial Instruments
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Financial Instruments Fair Value Measurements and Financial Instruments
Accounting standards establish a three tier fair value hierarchy that prioritizes the inputs used in measuring fair values as follows:
•Level 1 — observable inputs such as quoted prices for identical assets in active markets;
•Level 2 — inputs other than quoted prices for identical assets in active markets, that are observable either directly or indirectly; and
•Level 3 — unobservable inputs in which there is little or no market data which requires the use of valuation techniques and the development of assumptions.
The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments:
Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews treasury and government money market funds to obtain reasonable assurance that the fund net asset value is $1 per share, and reviews the floating net asset value of institutional prime money market funds for reasonableness.
Equity investments consist of equity securities and equity derivatives valued using the closing stock price on a national securities exchange. Over-the-counter equity derivatives are valued using observable inputs such as underlying prices of the underlying security and volatility. On a sample basis, the Company reviews the listing of Level 1 equity securities in the portfolio, agrees the closing stock prices to a national securities exchange, and independently verifies the observable inputs for Level 2 equity derivatives and securities.
Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves, and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using DCF models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains an understanding of the models, inputs, and assumptions used in developing prices provided by its vendors through discussions with the fund managers. The Company independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on internal Company guidelines, it is then reviewed by management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and historically are not material to the fair value estimates used in the Condensed Consolidated 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 volatility.
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 DCF 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, 2022 and December 31, 2021 (in millions):
  Fair Value Measurements Using
Balance at March 31, 2022Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Assets    
Money market funds (1)
$3,580 $3,580 $— $— 
Other investments    
Government bonds$1 $— $1 $— 
Derivatives (2)
  
Gross foreign exchange contracts$41 $— $41 $— 
Liabilities   
Derivatives (2)
    
Gross foreign exchange contracts$13 $— $13 $— 
  Fair Value Measurements Using
Balance at December 31, 2021Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Assets    
Money market funds (1)
$2,918 $2,918 $— $— 
Other investments    
Government bonds$1 $— $1 $— 
Derivatives (2)
    
Gross foreign exchange contracts$40 $— $40 $— 
Liabilities  0 
Derivatives (2)
    
Gross foreign exchange contracts$11 $— $11 $— 
(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 13 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. 
There were no transfers of assets or liabilities between fair value hierarchy levels in the three months ended March 31, 2022 or 2021. The Company recognized no realized or unrealized gains or losses in the Condensed Consolidated Statements of Income during the three months ended March 31, 2022 or 2021 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, 2022December 31, 2021
 Carrying ValueFair ValueCarrying ValueFair Value
Current portion of long-term debt$499 $501 $499 $507 
Long-term debt$9,685 $9,824 $8,228 $9,204 
v3.22.1
Claims, Lawsuits, and Other Contingencies
 3 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Claims, Lawsuits, and Other Contingencies Claims, Lawsuits, and Other Contingencies
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 E&O claims. The damages claimed in these matters are or may be substantial, including, in many instances, claims for punitive, treble, or extraordinary damages. While Aon maintains meaningful E&O insurance and other insurance programs to provide protection against certain losses that arise in such matters, Aon has exhausted or materially depleted its coverage under some of the policies that protect the Company and, consequently, is self-insured or materially self-insured for some claims. Accruals for these exposures, and related insurance receivables, when applicable, are included in the Condensed Consolidated Statements of Financial Position and have been recognized in Other general expense in the Condensed Consolidated Statements of Income to the extent that losses are deemed probable and are reasonably estimable. These amounts are adjusted from time to time as developments warrant. Matters that are not probable and reasonably estimable are not accrued for in the financial statements.
The Company has included in the current matters described below certain matters in which (1) loss (including interest and costs) is probable, (2) loss (including interest and costs) is reasonably possible (that is, more than remote but not probable), or (3) there exists the reasonable possibility of loss (including interest and costs) 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 (including interest and costs) 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 $0.4 billion, exclusive of any insurance coverage. These estimates are based on available information as of the date of this filing. As available information changes, the matters for which Aon is able to estimate, and the estimates themselves, may change. In addition, many estimates involve significant judgment and uncertainty. For example, at the time of making an estimate, Aon may only have limited information about the facts underlying the claim, and predictions and assumptions about future court rulings and outcomes may prove to be inaccurate. Although management at present believes that the ultimate outcome of all matters described below, individually or in the aggregate, will not have a material adverse effect on the consolidated financial position of Aon, legal proceedings are subject to inherent uncertainties and unfavorable rulings or other events. Unfavorable resolutions could include substantial monetary or punitive damages imposed on Aon or its subsidiaries. If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected.
Current Matters
On October 3, 2017, 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 320 million ($223 million at March 31, 2022 exchange rates) plus interest and costs. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims.
Aon Hewitt Investment Consulting, Inc., now known as Aon Investments USA, Inc. (“Aon Investments”), Lowe’s Companies, Inc. and the Administrative Committee of Lowe’s Companies, Inc. (collectively “Lowe’s”) were sued on April 27, 2018 in the U.S. District Court for the Western District of North Carolina (the “Court”) in a class action lawsuit brought on behalf of participants in the Lowe’s 401(k) Plan (the “Plan”). Aon Investments provided investment consulting services to Lowe’s under the ERISA. The plaintiffs contend that in 2015 Lowe’s imprudently placed the Hewitt Growth Fund in the Plan’s lineup of investments, the Hewitt Growth Fund underperformed its benchmarks, and that Aon had a conflict of interest in recommending the proprietary fund for the Plan. The plaintiffs allege the Plan suffered over $200 million in investment losses when compared to the eight funds it replaced. The plaintiffs allege that Aon Investments breached its duties of loyalty and prudence pursuant to the ERISA statute. The matter was tried to the Court the last week of June 2021, and the Court entered judgment in favor of Aon on all claims on October 12, 2021. Plaintiffs have filed an appeal with the United States Court of Appeals for the Fourth Circuit. Aon believes 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.
Aon faces legal action arising out of a fatal plane crash in November 2016. Aon U.K. Limited placed an aviation civil liability reinsurance policy for the Bolivian insurer of the airline. After the crash, the insurer determined that there was no coverage under the airline’s insurance policy due to the airline’s breach of various policy conditions. In November 2018, the owner of the aircraft filed a claim in Bolivia against Aon, the airline, the insurer and the insurance broker. The claim is for $16 million plus any liability the owner has to third parties. In November 2019, a federal prosecutor in Brazil filed a public civil action naming three Aon entities as defendants, along with the airline, the insurer and the lead reinsurer. That claim seeks pecuniary damages for families affected by the crash in the sum of $300 million; or, in the alternative, $50 million; or, in the alternative, $25 million; plus “moral damages” of an equivalent sum. Separately, in March 2020, the Brazilian Federal Senate invited Aon to give evidence to a Parliamentary Commission of Inquiry in an investigation into the accident. Aon is cooperating with that inquiry. In August 2020, 43 individuals (surviving passengers and estates of the deceased) filed a motion in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida, seeking permission to commence proceedings against Aon (and the insurer and reinsurers) for claims totaling $844 million. Finally, in April 2021, representatives of 16 passengers issued a claim against Aon in the High Court in England seeking damages under the Fatal Accidents Act 1976 in the sum of £29 million ($38 million at March 31, 2022 exchange rates). Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims.
Aon Investments and AGI were sued on September 16, 2020, in the U.S. District Court for the Southern District of New York by the Blue Cross and Blue Shield Association NEBC. Aon Investments and its predecessors provided investment advisory services to NEBC since 2009. The NEBC contends that it suffered investment losses exceeding $2 billion in several Structured Alpha funds managed by AGI and recommended by Aon. The NEBC asserted claims against Aon Investments for breach of fiduciary duty and breach of co-fiduciary duty, and alleged that Aon Investments and AGI were jointly and severally liable for damages, which include the restoration of investment losses, disgorgement of fees and profits, and attorneys’ fees. AGI recently settled with the NEBC but Aon Investments was not a party to that settlement. Aon believes that it has meritorious defenses to the claims asserted against it and intends to vigorously defend itself in the litigation.
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 assumed jurisdiction over the investigation in place of the FCA, and the European Commission has now closed its investigation. Other antitrust agencies outside the E.U. are 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.
Guarantees and Indemnifications
The Company provides a variety of guarantees and indemnifications to its customers and others. The maximum potential amount of future payments represents the notional amounts that could become payable under the guarantees and indemnifications if there were a total default by the guaranteed parties, without consideration of possible recoveries under recourse provisions or other methods. These amounts may bear no relationship to the expected future payments, if any, for these guarantees and indemnifications. Any anticipated amounts payable are included in the Financial Statements, and are recorded at fair value.
The Company expects that, as prudent business interests dictate, additional guarantees and indemnifications may be issued from time to time.
Guarantee of Registered Securities
On April 1, 2020, a scheme of arrangement under English law was completed, as described in the proxy statement filed with the SEC on December 20, 2019 (the “Ireland Reorganization”). In connection with the Ireland Reorganization, Aon plc and Aon Global Holdings plc, entered into various agreements pursuant to which they agreed to guarantee the obligations of Aon Corporation arising under issued and outstanding debt securities, which were previously guaranteed solely by Aon Global
Limited and the obligations of Aon Global Limited arising under issued and outstanding debt securities, which were previously guaranteed solely by Aon Corporation. Those agreements include: (1) Second Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, and Aon Global Holdings plc and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) (amending and restating the Amended and Restated Indenture, dated April 2, 2012, among Aon Corporation, Aon Global Limited and the Trustee); (2) Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, Aon Global Holdings plc and the Trustee (amending and restating the Indenture, dated December 12, 2012, among Aon Corporation, Aon Global Limited plc and the Trustee); (3) Second Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, Aon Global Holdings plc and the Trustee (amending and restating the Amended and Restated Indenture, dated May 20, 2015, among Aon Corporation, Aon Global Limited and the Trustee); (4) Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, Aon Global Holdings plc and the Trustee (amending and restating the Indenture, dated November 13, 2015, among Aon Corporation, Aon Global Limited and the Trustee); and (5) Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, Aon Global Holdings plc and the Trustee (amending and restating the Indenture, dated December 3, 2018, among Aon Corporation, Aon Global Limited and the Trustee).
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 LOCs. The Company had total LOCs outstanding of approximately $74 million at March 31, 2022, and $75 million at December 31, 2021. 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 $85 million at March 31, 2022 compared to $153 million at December 31, 2021.
v3.22.1
Segment Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company operates as one segment that includes all of Aon’s operations, which as a global professional services firm provides a broad range of risk, health, and wealth solutions through four solution lines which make up its principal products and services. The CODM assesses the performance of the Company and allocates resources based on one segment: Aon United.
The Company’s reportable operating segment has been determined using a management approach, which is consistent with the basis and manner in which the CODM uses financial information for the purposes of allocating resources and evaluating performance. The CODM assesses performance and allocates resources based on total Aon results against its key four metrics, including organic revenue growth, expense discipline, and collaborative behaviors that maximize value for Aon and its shareholders, regardless of which solution line it benefits.
As Aon operates as one segment, segment profit or loss is consistent with consolidated reporting as disclosed in the Condensed Consolidated Statements of Income. Refer to Note 3 “Revenue from Contracts with Customers” for further information on revenue by principal service line.
v3.22.1
Accounting Principles and Practices (Policies)
 3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation Basis of Presentation
The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP. The Condensed Consolidated 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 Condensed Consolidated Financial Statements include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows for all periods presented.
Certain information and disclosures normally included in the Financial Statements prepared in accordance with U.S. GAAP have been condensed or omitted. The Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The results for the three months ended March 31, 2022 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2022, particularly in light of the continuing effect of the COVID-19 pandemic.
Use of Estimates
Use of Estimates
The preparation of the accompanying Condensed Consolidated 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 Condensed Consolidated Financial Statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, foreign currency exchange rate movements, and the COVID-19 pandemic increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the Condensed Consolidated Financial Statements in future periods.
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 two years. These derivatives are accounted for as hedges, and changes in fair value are recorded each period in Other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income.
The Company also uses foreign exchange derivatives, typically forward contracts and options, to economically hedge the currency exposure of the Company’s global liquidity profile, including monetary assets or liabilities that are denominated in a non-functional currency of an entity, typically on a rolling 90-day basis, but may be for up to one year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income (expense) in the Condensed Consolidated Statements of Income.
Fair Value Measurements and Financial Instruments
Accounting standards establish a three tier fair value hierarchy that prioritizes the inputs used in measuring fair values as follows:
•Level 1 — observable inputs such as quoted prices for identical assets in active markets;
•Level 2 — inputs other than quoted prices for identical assets in active markets, that are observable either directly or indirectly; and
•Level 3 — unobservable inputs in which there is little or no market data which requires the use of valuation techniques and the development of assumptions.
The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments:
Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews treasury and government money market funds to obtain reasonable assurance that the fund net asset value is $1 per share, and reviews the floating net asset value of institutional prime money market funds for reasonableness.
Equity investments consist of equity securities and equity derivatives valued using the closing stock price on a national securities exchange. Over-the-counter equity derivatives are valued using observable inputs such as underlying prices of the underlying security and volatility. On a sample basis, the Company reviews the listing of Level 1 equity securities in the portfolio, agrees the closing stock prices to a national securities exchange, and independently verifies the observable inputs for Level 2 equity derivatives and securities.
Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves, and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using DCF models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains an understanding of the models, inputs, and assumptions used in developing prices provided by its vendors through discussions with the fund managers. The Company independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on internal Company guidelines, it is then reviewed by management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and historically are not material to the fair value estimates used in the Condensed Consolidated 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 volatility.
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 DCF analyses based on current borrowing rates for similar types of borrowing arrangements.
v3.22.1
Revenue from Contracts with Customers (Tables)
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table summarizes revenue from contracts with customers by principal service line (in millions):
Three Months Ended March 31,
20222021
Commercial Risk Solutions$1,719 $1,640 
Reinsurance Solutions976 922 
Health Solutions638 615 
Wealth Solutions345 355 
Eliminations(8)(7)
Total revenue$3,670 $3,525 
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,
20222021
United States$1,417 $1,308 
Americas other than United States276 250 
United Kingdom528 530 
Ireland29 33 
Europe, Middle East, & Africa other than United Kingdom and Ireland1,058 1,091 
Asia Pacific362 313 
Total revenue$3,670 $3,525 
Schedule of Capitalized Contract Cost
An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):
Three Months Ended March 31,
20222021
Balance at beginning of period$361 $339 
Additions348 346 
Amortization(457)(443)
Impairment— — 
Foreign currency translation and other2 (1)
Balance at end of period$254 $241 
An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):
Three Months Ended March 31,
20222021
Balance at beginning of period$179 $184 
Additions15 13 
Amortization(12)(12)
Impairment— — 
Foreign currency translation and other2 — 
Balance at end of period$184 $185 
v3.22.1
Other Financial Data (Tables)
 3 Months Ended
Mar. 31, 2022
Other Financial Data [Abstract]  
Schedule of Other Income (Expense)
Other income (expense) consists of the following (in millions):
Three Months Ended March 31,
20222021
Foreign currency remeasurement$(28)$4 
Pension and other postretirement(3)6 
Equity earnings1 1 
Gain from sales of businesses25 — 
Financial instruments and other30 (13)
Total
$25 $(2)
Schedule of Allowance for Doubtful Accounts
Changes in the net carrying amount of allowance for doubtful accounts are as follows (in millions):
Three Months Ended March 31,
20222021
Balance at beginning of period$90 $98 
Provision6 6 
Accounts written off, net of recoveries(3)(4)
Foreign currency translation and other— 1 
Balance at end of period$93 $101 
Schedule of Other Current Assets
The components of Other current assets are as follows (in millions):
As ofMarch 31,
2022		December 31,
2021
Costs to fulfill contracts with customers (1)
$254 $361 
Prepaid expenses132 137 
Taxes receivable48 53 
Other159 165 
Total$593 $716 
(1)Refer to Note 3 “Revenue from Contracts with Customers” for further information.
Schedule of Other Non-current Assets
The components of Other non-current assets are as follows (in millions):
As of March 31,
2022		December 31,
2021
Costs to obtain contracts with customers (1)
$184 $179 
Taxes receivable93 95 
Leases57 63 
Investments62 64 
Other124 111 
Total$520 $512 
(1)Refer to Note 3 “Revenue from Contracts with Customers” for further information.
Schedule of Other Current Liabilities
The components of Other current liabilities are as follows (in millions):
As ofMarch 31,
2022		December 31,
2021
Deferred revenue (1)
$323 $321 
Taxes payable269 149 
Leases207 213 
Other786 648 
Total
$1,585 $1,331 
(1)During the three months ended March 31, 2022, revenue of $203 million was recognized in the Condensed Consolidated Statements of Income. During the three months ended March 31, 2021, revenue of $171 million was recognized in the Condensed Consolidated Statements of Income.
Schedule of Other Non-current Liabilities
The components of Other non-current liabilities are as follows (in millions):
As ofMarch 31,
2022		December 31,
2021
Taxes payable (1)
$631 $609 
Leases42 46 
Deferred revenue34 70 
Compensation and benefits57 58 
Other107 127 
Total
$871 $910 
(1)Includes $145 million for the non-current portion of the one-time mandatory transition tax on accumulated foreign earnings as of March 31, 2022 and December 31, 2021.
v3.22.1
Acquisitions and Dispositions of Businesses (Tables)
 3 Months Ended
Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Consideration Transferred and Preliminary Value of Intangible Assets The following table includes the preliminary fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisition (in millions):
March 31,
2022
Consideration transferred
Cash$134 
Deferred and contingent consideration3 
Aggregate consideration transferred$137 
Assets acquired
Goodwill74 
Intangible assets65 
Other assets6 
Total assets acquired145 
Liabilities assumed:
Total liabilities assumed8 
Net assets acquired$137 
v3.22.1
Goodwill and Other Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2022
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, 2022 are as follows (in millions):
Balance as of December 31, 2021$8,434 
Goodwill related to current year acquisitions74 
Goodwill related to disposals(7)
Foreign currency translation and other(5)
Balance as of March 31, 2022$8,496 
Schedule of Finite-Lived Intangible Assets
Other intangible assets by asset class are as follows (in millions):
 March 31, 2022December 31, 2021
 Gross Carrying AmountAccumulated
Amortization and Impairment		Net Carrying AmountGross Carrying AmountAccumulated
Amortization and Impairment		Net Carrying Amount
Customer-related and contract-based$2,307 $1,866 $441 $2,289 $1,848 $441 
Tradenames 14 14 — 14 13 1 
Technology and other447 358 89 407 357 50 
Total$2,768 $2,238 $530 $2,710 $2,218 $492 
Schedule of Estimated Future Amortization Expense on Intangible Assets
The estimated future amortization for finite-lived intangible assets as of March 31, 2022 is as follows (in millions):
Remainder of 2022$81 
202397 
202482 
202569 
202648 
202733 
Thereafter120 
Total$530 
v3.22.1
Debt (Tables)
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Schedule of Commercial Paper
Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position, is as follows (in millions):
March 31, 2022December 31, 2021
Commercial paper outstanding$100 $665 
The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages):
Three Months Ended March 31,
20222021
Weighted average commercial paper outstanding$571 $17 
Weighted average interest rate of commercial paper outstanding(0.16)%0.19 %
v3.22.1
Shareholders' Equity (Tables)
 3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Schedule of Share Repurchase Agreements
The following table summarizes the Company’s share repurchase activity (in millions, except per share data):
Three Months Ended March 31,
20222021
Shares repurchased2.8 0.2 
Average price per share$294.47 $217.70 
Repurchase costs recorded to retained earnings
$828 $50 
Schedule of Components of Weighted Average Number of Shares
Weighted average ordinary shares outstanding are as follows (in millions):
 Three Months Ended March 31,
 20222021
Basic weighted average ordinary shares outstanding215.3 227.1 
Dilutive effect of potentially issuable shares1.1 1.0 
Diluted weighted average ordinary shares outstanding216.4 228.1 
Schedule of 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, 2021$2 $(1,333)$(2,540)(3,871)
Other comprehensive income (loss) before reclassifications, net— (6)10 4 
Amounts reclassified from accumulated other comprehensive income
Amounts reclassified from accumulated other comprehensive income1 — 31 32 
Tax expense— — (8)(8)
Amounts reclassified from accumulated other comprehensive income, net (3)
1 — 23 24 
Net current period other comprehensive income (loss)
1 (6)33 28 
Balance at March 31, 2022$3 $(1,339)$(2,507)$(3,843)
 
Change in Fair Value of Financial Instruments (1)
Foreign Currency Translation Adjustments
Postretirement Benefit Obligation (2)
Total
Balance at December 31, 2020$1 $(1,045)$(2,817)$(3,861)
Other comprehensive income (loss) before reclassifications, net10 (70)2 (58)
Amounts reclassified from accumulated other comprehensive income
Amounts reclassified from accumulated other comprehensive income 1 — 36 37 
Tax expense— — (9)(9)
Amounts reclassified from accumulated other comprehensive income, net (3)
1 — 27 28 
Net current period other comprehensive income (loss)
11 (70)29 (30)
Balance at March 31, 2021$12 $(1,115)$(2,788)$(3,891)
(1)Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Total revenue, Interest expense, and Compensation and benefits in the Condensed Consolidated Statements of Income. Refer to Note 13 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity.
(2)Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense) in the Condensed Consolidated Statements of Income.
(3)It is the Company’s policy to release income tax effects from Accumulated other comprehensive loss using the portfolio approach.
v3.22.1
Employee Benefits (Tables)
 3 Months Ended
Mar. 31, 2022
Retirement Benefits [Abstract]  
Schedule of Components of Net Periodic Benefit Cost for the Pension Plans
The following table provides the components of the net periodic (benefit) cost recognized in the Condensed Consolidated Statements of Income for Aon’s significant U.K., U.S., and other major pension plans, which are located in the Netherlands and Canada. Service cost is reported in Compensation and benefits and all other components are reported in Other income (expense) as follows (in millions):
 Three Months Ended March 31,
 U.K.U.S.Other
 202220212022202120222021
Service cost$— $— $— $— $— $— 
Interest cost23 16 17 14 5 3 
Expected return on plan assets, net of administration expenses(36)(34)(27)(32)(9)(8)
Amortization of prior-service cost1 1 — — — — 
Amortization of net actuarial loss7 8 16 19 4 4 
Net periodic (benefits) cost(5)(9)6 1 — (1)
Loss on pension settlement— — 1 — — — 
Total net periodic (benefit) cost$(5)$(9)$7 $1 $— $(1)
Schedule of Employer's Contributions The following table summarizes contributions made to the Company’s significant pension plans (in millions):
Three Months Ended March 31,
20222021
Contributions to U.K. pension plans$3 $4 
Contributions to U.S. pension plans18 38 
Contributions to other major pension plans8 8 
Total contributions$29 $50 
v3.22.1
Share-Based Compensation Plans (Tables)
 3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Schedule of 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,
 20222021
Restricted share units$87 $66 
Performance share awards27 61 
Employee share purchase plans4 4 
Total share-based compensation expense
$119 $131 
Schedule of Restricted Share Unit Activity
The following table summarizes the status of the Company’s RSUs (shares in thousands, except fair value):
 Three Months Ended March 31,
20222021
 Shares
Fair Value (1)
Shares
Fair Value (1)
Non-vested at beginning of period3,075 $203 3,309 $163 
Granted428 $307 372 $226 
Vested(396)$189 (452)$160 
Forfeited(53)$207 (70)$166 
Non-vested at end of period3,055 $219 3,159 $171 
(1)Represents per share weighted average fair value of award at date of grant.
Schedule of Performance Share Awards
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, 2022 and the years ended December 31, 2021 and 2020, respectively (shares in thousands and dollars in millions, except fair value per share):
 March 31,
2022		December 31,
2021		December 31,
2020
Target PSAs granted during period292 382 500 
Weighted average fair value per share at date of grant$313 $225 $163 
Number of shares that would be issued based on current performance levels292 730 962 
Unamortized expense, based on current performance levels$91 $106 $38 
v3.22.1
Derivatives and Hedging (Tables)
 3 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of 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
 March 31,
2022		December 31,
2021		March 31,
2022		December 31,
2021		March 31,
2022		December 31,
2021
Foreign exchange contracts      
Accounted for as hedges$631 $629 $26 $27 $— $— 
Not accounted for as hedges (2)
402 412 2 2 — — 
Total$1,033 $1,041 $28 $29 $— $— 
(1)Included within Other current assets ($17 million at March 31, 2022 and $21 million at December 31, 2021) or Other non-current assets ($11 million at March 31, 2022 and $8 million at December 31, 2021).
(2)These contracts typically are for 90-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.
Schedule of Derivative Gains
The amounts of derivative gains recognized in the Condensed Consolidated Financial Statements are as follows (in millions):
 Three Months Ended March 31,
 20222021
Gain recognized in Accumulated other comprehensive loss$1 $13 
The amounts of derivative gains (losses) reclassified from Accumulated other comprehensive loss to the Condensed Consolidated Statements of Income are as follows (in millions):
Three Months Ended March 31,
20222021
Total revenue$(1)$(1)
v3.22.1
Fair Value Measurements and Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2022
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, 2022 and December 31, 2021 (in millions):
  Fair Value Measurements Using
Balance at March 31, 2022Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Assets    
Money market funds (1)
$3,580 $3,580 $— $— 
Other investments    
Government bonds$1 $— $1 $— 
Derivatives (2)
  
Gross foreign exchange contracts$41 $— $41 $— 
Liabilities   
Derivatives (2)
    
Gross foreign exchange contracts$13 $— $13 $— 
  Fair Value Measurements Using
Balance at December 31, 2021Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Assets    
Money market funds (1)
$2,918 $2,918 $— $— 
Other investments    
Government bonds$1 $— $1 $— 
Derivatives (2)
    
Gross foreign exchange contracts$40 $— $40 $— 
Liabilities  0 
Derivatives (2)
    
Gross foreign exchange contracts$11 $— $11 $— 
(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 13 “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, 2022December 31, 2021
 Carrying ValueFair ValueCarrying ValueFair Value
Current portion of long-term debt$499 $501 $499 $507 
Long-term debt$9,685 $9,824 $8,228 $9,204 
v3.22.1
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Disaggregation of Revenue [Line Items]    
Total revenue $ 3,670 $ 3,525
United States    
Disaggregation of Revenue [Line Items]    
Total revenue 1,417 1,308
Americas other than United States    
Disaggregation of Revenue [Line Items]    
Total revenue 276 250
United Kingdom    
Disaggregation of Revenue [Line Items]    
Total revenue 528 530
Ireland    
Disaggregation of Revenue [Line Items]    
Total revenue 29 33
Europe, Middle East, & Africa other than United Kingdom and Ireland    
Disaggregation of Revenue [Line Items]    
Total revenue 1,058 1,091
Asia Pacific    
Disaggregation of Revenue [Line Items]    
Total revenue 362 313
Eliminations    
Disaggregation of Revenue [Line Items]    
Total revenue (8) (7)
Commercial Risk Solutions | Operating Segments    
Disaggregation of Revenue [Line Items]    
Total revenue 1,719 1,640
Reinsurance Solutions | Operating Segments    
Disaggregation of Revenue [Line Items]    
Total revenue 976 922
Health Solutions | Operating Segments    
Disaggregation of Revenue [Line Items]    
Total revenue 638 615
Wealth Solutions | Operating Segments    
Disaggregation of Revenue [Line Items]    
Total revenue $ 345 $ 355
v3.22.1
Revenue from Contracts with Customers - Contract Assets Rollforward (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Capitalized Cost To Fulfill Customer Contracts    
Change in Capitalized Contract Costs    
Balance at beginning of period $ 361 $ 339
Additions 348 346
Amortization (457) (443)
Impairment 0 0
Foreign currency translation and other 2 (1)
Balance at end of period 254 241
Capitalized Cost To Obtain Customer Contracts    
Change in Capitalized Contract Costs    
Balance at beginning of period 179 184
Additions 15 13
Amortization (12) (12)
Impairment 0 0
Foreign currency translation and other 2 0
Balance at end of period $ 184 $ 185
v3.22.1
Cash and Cash Equivalents and Short-Term Investments (Details)
£ in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
Mar. 31, 2022
GBP (£)
Dec. 31, 2021
USD ($)
Dec. 31, 2021
GBP (£)
Cash, Cash Equivalents, and Short-term Investments [Abstract]        
Cash and cash equivalents and short-term investments $ 1,050.0   $ 836.0  
Cash and cash equivalents and short term investments, period increase (decrease) 214.0      
Restricted cash and investments 163.0   160.0  
Operating funds required to be held in U.K. $ 111.1 £ 84.3 $ 112.8 £ 84.3
v3.22.1
Other Financial Data - Schedule of Other Income (Expense) (Details) - USD ($)
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Other Financial Data [Abstract]    
Foreign currency remeasurement $ (28,000,000) $ 4,000,000
Pension and other postretirement (3,000,000) 6,000,000
Equity earnings 1,000,000 1,000,000
Gain from sales of businesses 25,000,000 0
Financial instruments and other 30,000,000 (13,000,000)
Total $ 25,000,000 $ (2,000,000)
v3.22.1
Other Financial Data - Schedule of Allowance for Doubtful Accounts (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Movement ofAccounts Receivable, Allowance for Credit Loss, Current [Roll Forward]    
Balance at beginning of period $ 90 $ 98
Provision 6 6
Accounts written off, net of recoveries (3) (4)
Foreign currency translation and other 0 1
Balance at end of period $ 93 $ 101
v3.22.1
Other Financial Data - Schedule of Other Current Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Other Financial Data [Abstract]    
Cost to fulfill contracts with customers $ 254 $ 361
Prepaid expenses 132 137
Taxes receivable 48 53
Other 159 165
Total $ 593 $ 716
v3.22.1
Other Financial Data - Schedule of Other Non-current Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Other Financial Data [Abstract]    
Cost to obtain contracts with customers $ 184 $ 179
Taxes receivable 93 95
Leases 57 63
Investments 62 64
Other 124 111
Total $ 520 $ 512
v3.22.1
Other Financial Data - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Other Financial Data [Abstract]      
Deferred revenue $ 323   $ 321
Taxes payable 269   149
Leases 207   213
Other 786   648
Total 1,585   $ 1,331
Revenue recognized from deferred revenue $ 203 $ 171  
v3.22.1
Other Financial Data - Schedule of Other Non-current Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Other Financial Data [Abstract]    
Taxes payable $ 631 $ 609
Leases 42 46
Deferred revenue 34 70
Compensation and benefits 57 58
Other 107 127
Other non-current liabilities 871 910
Noncurrent portion of transition tax $ 145 $ 145
v3.22.1
Acquisitions and Dispositions of Businesses - Completed Acquisitions (Details)
$ in Millions
 3 Months Ended
Sep. 01, 2021
USD ($)
Mar. 31, 2022
acquisition
Mar. 31, 2021
acquisition
Dec. 22, 2021
Business Acquisition [Line Items]        
Number of business acquired under business combination | acquisition   1 0  
For Welfare S.r.l        
Business Acquisition [Line Items]        
Percentage of capital acquired       100.00%
Aon India Insurance Brokers Limited        
Business Acquisition [Line Items]        
Percentage of capital acquired 51.00%      
Equity interest in acquiree, percentage 49.00%      
Equity interest in acquiree | $ $ 15      
v3.22.1
Acquisitions and Dispositions of Businesses - Schedule of Net Assets Acquired (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Assets acquired    
Goodwill $ 8,496 $ 8,434
2022 And 2021 Acquisitions    
Business Acquisition [Line Items]    
Cash 134  
Deferred and contingent consideration 3  
Aggregate consideration transferred 137  
Assets acquired    
Goodwill 74  
Intangible assets 65  
Other assets 6  
Total assets acquired 145  
Liabilities assumed:    
Total liabilities assumed 8  
Net assets acquired $ 137  
v3.22.1
Acquisitions and Dispositions of Businesses - Completed Dispositions (Details)
 3 Months Ended
Mar. 31, 2022
USD ($)
disposition
Mar. 31, 2021
USD ($)
disposition
Business Combination and Asset Acquisition [Abstract]    
Number of dispositions | disposition 2 0
Gain from sales of businesses | $ $ 25,000,000 $ 0
v3.22.1
Goodwill and Other Intangible Assets - Schedule of Changes in the Net Carrying Amount of Goodwill (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
Goodwill [Roll Forward]  
Beginning balance $ 8,434
Goodwill related to current year acquisitions 74
Goodwill related to disposals (7)
Foreign currency translation and other (5)
Ending balance $ 8,496
v3.22.1
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets by Asset Class (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 2,768 $ 2,710
Accumulated Amortization and Impairment 2,238 2,218
Net Carrying Amount 530 492
Customer-related and contract-based    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 2,307 2,289
Accumulated Amortization and Impairment 1,866 1,848
Net Carrying Amount 441 441
Tradenames    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 14 14
Accumulated Amortization and Impairment 14 13
Net Carrying Amount 0 1
Technology and other    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 447 407
Accumulated Amortization and Impairment 358 357
Net Carrying Amount $ 89 $ 50
v3.22.1
Goodwill and Other Intangible Assets - Schedule of Estimated Future Amortization Expense on Intangible Assets (Details)
$ in Millions
Mar. 31, 2022
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Remainder of 2022 $ 81
2023 97
2024 82
2025 69
2026 48
2027 33
Thereafter 120
Total $ 530
v3.22.1
Debt - Narrative (Details)
Mar. 31, 2022
USD ($)
credit_facility
Mar. 31, 2022
EUR (€)
credit_facility
Feb. 28, 2022
USD ($)
Dec. 02, 2021
USD ($)
Nov. 30, 2021
USD ($)
Aug. 23, 2021
USD ($)
Jan. 13, 2021
USD ($)
Debt Instrument [Line Items]              
Number of credit facilities | credit_facility 2 2          
Borrowings under credit facilities $ 0            
Line of Credit              
Debt Instrument [Line Items]              
Line of credit facility, available credit 1,750,000,000            
Line of Credit | Credit Facility Expiring September 2026              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity 1,000,000,000            
Line of Credit | Credit Facility Expiring October 2023              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity 750,000,000            
2.85% Senior Notes Due May 2027 | Senior Notes              
Debt Instrument [Line Items]              
Debt, face amount     $ 600,000,000        
Debt interest rate percentage (as a percent)     2.85%        
3.90% Senior Notes Due February 2052 | Senior Notes              
Debt Instrument [Line Items]              
Debt, face amount     $ 900,000,000        
Debt interest rate percentage (as a percent)     3.90%        
2.60% Senior Notes Due December 2031 | Senior Notes              
Debt Instrument [Line Items]              
Debt, face amount       $ 500,000,000      
Debt interest rate percentage (as a percent)       2.60%      
2.20% Senior Notes due November 2022 | Senior Notes              
Debt Instrument [Line Items]              
Debt, face amount         $ 500,000,000    
Debt interest rate percentage (as a percent)         2.20%    
2.05% Senior Notes Due August 2031 | Senior Notes              
Debt Instrument [Line Items]              
Debt, face amount           $ 400,000,000  
Debt interest rate percentage (as a percent)           2.05%  
2.90% Senior Notes Due August 2051 | Senior Notes              
Debt Instrument [Line Items]              
Debt, face amount           $ 600,000,000  
Debt interest rate percentage (as a percent)           2.90%  
2.80% Senior Notes Due March 2021 | Senior Notes              
Debt Instrument [Line Items]              
Debt, face amount             $ 400,000,000
Debt interest rate percentage (as a percent)             2.80%
U.S. Program | Commercial paper outstanding              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity 1,000,000,000            
European Program | Commercial paper outstanding              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity $ 686,000,000 € 625,000,000          
v3.22.1
Debt - Schedule of Commercial Paper (Details) - Commercial paper outstanding - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Debt Instrument [Line Items]      
Commercial paper outstanding $ 100   $ 665
Weighted average commercial paper outstanding $ 571 $ 17  
Weighted average interest rate of commercial paper outstanding (0.16%) 0.19%  
v3.22.1
Income Taxes (Details)
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Tax Disclosure [Abstract]    
Effective income tax rate 19.60% 20.10%
v3.22.1
Shareholders' Equity - Additional Information (Details) - USD ($)
shares in Millions
 1 Months Ended 3 Months Ended 120 Months Ended
Feb. 18, 2022
Nov. 30, 2020
Jun. 30, 2017
Nov. 30, 2014
Mar. 31, 2022
Mar. 31, 2021
Mar. 31, 2022
Apr. 30, 2012
Equity [Abstract]                
Share repurchase authorization amount         $ 27,500,000,000   $ 27,500,000,000 $ 5,000,000,000
Share repurchase authorization amount, increase during period $ 7,500,000,000 $ 5,000,000,000 $ 5,000,000,000 $ 5,000,000,000        
Share repurchase, remaining authorized repurchase amount         $ 8,400,000,000   $ 8,400,000,000  
Shares purchased (in shares)         2.8 0.2 152.4  
Total cost of shares purchased         $ 828,000,000 $ 50,000,000 $ 19,100,000,000  
Antidilutive securities excluded from computation of earnings per share (in shares)         0.9 0.1    
v3.22.1
Shareholders' Equity - Schedule of Stock Repurchases (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 120 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Mar. 31, 2022
Equity [Abstract]      
Shares repurchased (in shares) 2.8 0.2 152.4
Average price per share (in dollars per share) $ 294.47 $ 217.70  
Repurchase costs recorded to retained earnings $ 828 $ 50 $ 19,100
v3.22.1
Shareholders' Equity - Weighted Average Ordinary Shares Outstanding (Details) - shares
shares in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Weighted average shares outstanding    
Basic weighted average ordinary shares outstanding (in shares) 215.3 227.1
Dilutive effect of potentially issuable shares (in shares) 1.1 1.0
Diluted weighted average ordinary shares outstanding (in shares) 216.4 228.1
v3.22.1
Shareholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance $ 1,158 $ 3,583
Other comprehensive income (loss) before reclassifications, net 4 (58)
Amounts reclassified from accumulated other comprehensive income    
Amounts reclassified from accumulated other comprehensive income 32 37
Tax expense (8) (9)
Amounts reclassified from accumulated other comprehensive income, net 24 28
Net current period other comprehensive income (loss) 28 (30)
Ending Balance 1,291 4,361
Change in Fair Value of Financial Instruments    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance 2 1
Other comprehensive income (loss) before reclassifications, net 0 10
Amounts reclassified from accumulated other comprehensive income    
Amounts reclassified from accumulated other comprehensive income 1 1
Tax expense 0 0
Amounts reclassified from accumulated other comprehensive income, net 1 1
Net current period other comprehensive income (loss) 1 11
Ending Balance 3 12
Foreign Currency Translation Adjustments    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (1,333) (1,045)
Other comprehensive income (loss) before reclassifications, net (6) (70)
Amounts reclassified from accumulated other comprehensive income    
Amounts reclassified from accumulated other comprehensive income 0 0
Tax expense 0 0
Amounts reclassified from accumulated other comprehensive income, net 0 0
Net current period other comprehensive income (loss) (6) (70)
Ending Balance (1,339) (1,115)
Postretirement Benefit Obligation    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (2,540) (2,817)
Other comprehensive income (loss) before reclassifications, net 10 2
Amounts reclassified from accumulated other comprehensive income    
Amounts reclassified from accumulated other comprehensive income 31 36
Tax expense (8) (9)
Amounts reclassified from accumulated other comprehensive income, net 23 27
Net current period other comprehensive income (loss) 33 29
Ending Balance (2,507) (2,788)
AOCI Attributable to Parent    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (3,871) (3,861)
Amounts reclassified from accumulated other comprehensive income    
Ending Balance $ (3,843) $ (3,891)
v3.22.1
Employee Benefits - Components of Net Periodic (Benefit) Cost (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
U.K.    
Defined Benefit Plan Disclosure [Line Items]    
Service cost $ 0 $ 0
Interest cost 23 16
Expected return on plan assets, net of administration expenses (36) (34)
Amortization of prior-service cost 1 1
Amortization of net actuarial loss 7 8
Net periodic (benefits) cost (5) (9)
Loss on pension settlement 0 0
Total net periodic (benefit) cost (5) (9)
Other    
Defined Benefit Plan Disclosure [Line Items]    
Service cost 0 0
Interest cost 5 3
Expected return on plan assets, net of administration expenses (9) (8)
Amortization of prior-service cost 0 0
Amortization of net actuarial loss 4 4
Net periodic (benefits) cost   (1)
Loss on pension settlement 0 0
Total net periodic (benefit) cost 0 (1)
U.S.    
Defined Benefit Plan Disclosure [Line Items]    
Service cost 0 0
Interest cost 17 14
Expected return on plan assets, net of administration expenses (27) (32)
Amortization of prior-service cost 0 0
Amortization of net actuarial loss 16 19
Net periodic (benefits) cost 6 1
Loss on pension settlement 1 0
Total net periodic (benefit) cost $ 7 $ 1
v3.22.1
Employee Benefits - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
U.K.    
Defined Benefit Plan Disclosure [Line Items]    
Non-cash settlement charge $ 0 $ 0
Expected future employer cash contribution 7  
Other    
Defined Benefit Plan Disclosure [Line Items]    
Non-cash settlement charge 0 0
Expected future employer cash contribution 15  
U.S.    
Defined Benefit Plan Disclosure [Line Items]    
Non-cash settlement charge 1 $ 0
Expected future employer cash contribution $ 52  
v3.22.1
Employee Benefits - Summary of Employer Contributions (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Defined Benefit Plan Disclosure [Line Items]    
Company’s benefit pension plans $ 29 $ 50
U.K.    
Defined Benefit Plan Disclosure [Line Items]    
Company’s benefit pension plans 3 4
Other    
Defined Benefit Plan Disclosure [Line Items]    
Company’s benefit pension plans 8 8
U.S.    
Defined Benefit Plan Disclosure [Line Items]    
Company’s benefit pension plans $ 18 $ 38
v3.22.1
Share-Based Compensation Plans - Share-based compensation expenses recognized (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total share-based compensation expense $ 119 $ 131
Restricted share units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total share-based compensation expense 87 66
Performance share awards    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total share-based compensation expense 27 61
Employee share purchase plans    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total share-based compensation expense $ 4 $ 4
v3.22.1
Share-Based Compensation Plans - Restricted Share Units Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Remaining weighted-average amortization period (in years) 2 years
Restricted share units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unamortized deferred compensation expense $ 478
Minimum | Restricted share units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period 3 years
Maximum | Restricted share units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period 5 years
v3.22.1
Share-Based Compensation Plans - Restricted share unit activity (Details) - Restricted share units - $ / shares
shares in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Non-vested share awards (in shares)      
Non-vested at beginning of period (in shares) 3,075 3,309 3,309
Granted (in shares) 428 372  
Vested (in shares) (396) (452)  
Forfeited (in shares) (53) (70)  
Non-vested at end of period (in shares) 3,055 3,159 3,075
Weighted Average Fair value      
Non-vested at beginning of period (in dollars per share) $ 203 $ 163 $ 163
Granted (in dollars per share) 307 226  
Vested (in dollars per share) 189 160  
Forfeited (in dollars per share) 207 166  
Non-vested at end of period (in dollars per share) $ 219 $ 171 $ 203
v3.22.1
Share-Based Compensation Plans - Performance Share Awards Narrative (Details) - Performance Shares
 3 Months Ended
Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
PSA, vesting conditions period (in years) 3 years
Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
PSA, actual shares issued, percent 0.00%
Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
PSA, actual shares issued, percent 200.00%
v3.22.1
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, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Target PSAs granted during period (in shares) 292 382 500
Weighted average fair value per share at date of grant (in dollars per share) $ 313 $ 225 $ 163
Number of shares that would be issued based on current performance levels (in shares) 292 730 962
Unamortized expense, based on current performance levels $ 91 $ 106 $ 38
v3.22.1
Derivatives and Hedging - Foreign Exchange Risk Management Narrative (Details)
 3 Months Ended
Mar. 31, 2022
Not designated as hedging instrument | Foreign exchange contracts  
Derivative [Line Items]  
Term of derivative contract 90 days
Not designated as hedging instrument | Foreign exchange contracts | Maximum  
Derivative [Line Items]  
Term of derivative contract 1 year
Cash Flow Hedging  
Derivative [Line Items]  
Foreign currency exposures, maximum average hedging period (less than) (in years) 2 years
v3.22.1
Derivatives and Hedging - Notional and Fair Values of Derivative Instruments (Details) - Foreign exchange contracts - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Derivatives, Fair Value    
Notional Amount $ 1,033 $ 1,041
Derivative Assets 28 29
Derivative Liabilities 0 0
Other Current Assets    
Derivatives, Fair Value    
Derivative Assets 17 21
Other Noncurrent Assets    
Derivatives, Fair Value    
Derivative Assets 11 8
Accounted for as hedges    
Derivatives, Fair Value    
Notional Amount 631 629
Derivative Assets 26 27
Derivative Liabilities 0 0
Not accounted for as hedges    
Derivatives, Fair Value    
Notional Amount 402 412
Derivative Assets 2 2
Derivative Liabilities $ 0 $ 0
Term of derivative contract 90 days  
v3.22.1
Derivatives and Hedging - Schedule of Derivative Gains (Losses) Recognized in the Consolidated Financial Statements (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Derivative [Line Items]    
Gain recognized in Accumulated other comprehensive loss $ 1 $ 13
Total revenue    
Derivative [Line Items]    
Derivative gains (losses) reclassified from accumulated other comprehensive loss $ (1) $ (1)
v3.22.1
Derivatives and Hedging - Interest Rate Management Risk Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Derivative [Line Items]    
Gain (loss) on derivative $ 30 $ (13)
Foreign exchange contracts    
Derivative [Line Items]    
Pretax gains that will be reclassified into earnings in the next twelve months 3  
Not designated as hedging instrument | Foreign exchange contracts    
Derivative [Line Items]    
Gain (loss) on derivative $ 32 $ (7)
v3.22.1
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, 2022
Dec. 31, 2021
Money market funds    
Assets    
Money market funds $ 3,580 $ 2,918
Government bonds    
Assets    
Other investments 1 1
Gross foreign exchange contracts    
Assets    
Derivatives 41 40
Liabilities    
Derivatives 13 11
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds    
Assets    
Money market funds 3,580 2,918
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) | Gross foreign exchange contracts    
Assets    
Derivatives 0 0
Liabilities    
Derivatives 0 0
Significant Other Observable Inputs (Level 2) | Money market funds    
Assets    
Money market funds 0 0
Significant Other Observable Inputs (Level 2) | Government bonds    
Assets    
Other investments 1 1
Significant Other Observable Inputs (Level 2) | Gross foreign exchange contracts    
Assets    
Derivatives 41 40
Liabilities    
Derivatives 13 11
Significant Unobservable Inputs (Level 3) | Money market funds    
Assets    
Money market funds 0 0
Significant Unobservable Inputs (Level 3) | Government bonds    
Assets    
Other investments 0 0
Significant Unobservable Inputs (Level 3) | Gross foreign exchange contracts    
Assets    
Derivatives 0 0
Liabilities    
Derivatives $ 0 $ 0
v3.22.1
Fair Value Measurements and Financial Instruments - Schedule of Financial Instruments where the Carrying Amounts and Fair Values Differ (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Fair value of financial instrument    
Long-term debt $ 9,685 $ 8,228
Carrying Value    
Fair value of financial instrument    
Current portion of long-term debt 499 499
Long-term debt 9,685 8,228
Fair Value | Fair Value, Inputs, Level 2    
Fair value of financial instrument    
Current portion of long-term debt, fair value 501 507
Long term debt, fair value $ 9,824 $ 9,204
v3.22.1
Claims, Lawsuits, and Other Contingencies - Legal Narrative (Details)
£ in Millions, $ in Millions
 1 Months Ended 12 Months Ended
Mar. 31, 2022
USD ($)
Sep. 06, 2018
USD ($)
Oct. 03, 2017
NZD ($)
Apr. 30, 2021
USD ($)
plaintiff
Apr. 30, 2021
GBP (£)
plaintiff
Aug. 31, 2020
USD ($)
plaintiff
Nov. 30, 2019
USD ($)
defendant
Nov. 30, 2018
USD ($)
Dec. 31, 2016
USD ($)
Sep. 16, 2020
USD ($)
Apr. 27, 2018
USD ($)
Aviation and Aerospace Broking Industry                      
Legal, Guarantees and Indemnifications                      
Revenue                 $ 100,000,000    
Christchurch City Council | Pending Litigation                      
Legal, Guarantees and Indemnifications                      
Damages sought $ 223,000,000   $ 320                
Aon Hewitt Investment Consulting Inc                      
Legal, Guarantees and Indemnifications                      
Investment losses suffered by plaintiff                     $ 200,000,000
Fatal Plain Crash In November 2016 | Pending Litigation                      
Legal, Guarantees and Indemnifications                      
Damages sought       $ 38,000,000 £ 29 $ 844,000,000   $ 16,000,000      
Number of defendants | defendant             3        
Damages sought option 1             $ 300,000,000        
Damages sought option 2             50,000,000        
Damages sought option 3             $ 25,000,000        
Loss contingency, number of plaintiffs | plaintiff       16 16 43          
NEBC | Pending Litigation                      
Legal, Guarantees and Indemnifications                      
Investment losses suffered by plaintiff                   $ 2,000,000,000  
Minimum                      
Legal, Guarantees and Indemnifications                      
Estimate of possible loss 0                    
Minimum | Pilkington North America, Inc.                      
Legal, Guarantees and Indemnifications                      
Damages sought   $ 45,000,000                  
Maximum                      
Legal, Guarantees and Indemnifications                      
Estimate of possible loss $ 400,000,000                    
Maximum | Pilkington North America, Inc.                      
Legal, Guarantees and Indemnifications                      
Damages sought   85,000,000                  
Damages awarded   $ 15,000,000                  
v3.22.1
Claims, Lawsuits, and Other Contingencies - Letters of Credit Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]    
Letters of credit outstanding $ 74 $ 75
v3.22.1
Claims, Lawsuits, and Other Contingencies - Premium Payments (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]    
Maximum potential funding under commitments $ 85 $ 153
v3.22.1
Segment Information (Details)
 3 Months Ended
Mar. 31, 2022
segment
revenue_line
performance_metric
Segment Reporting [Abstract]  
Number of reportable segment | segment 1
Number of revenue lines | revenue_line 4
Number of performance metrics | performance_metric 4