6. Restructuring

Aon Hewitt Restructuring Plan

On October 14, 2010, the Company announced a global restructuring plan ("Aon Hewitt Plan") in connection with the acquisition of Hewitt. The Aon Hewitt Plan is intended to streamline operations across the combined Aon Hewitt organization and includes an estimated 2,000 job eliminations. The Company expects these restructuring activities and related expenses to affect continuing operations into 2013. The Aon Hewitt Plan is expected to result in cumulative costs of approximately $325 million through the end of the plan, consisting of approximately $192 million in employee termination costs and approximately $133 million in real estate rationalization costs. As of December 31, 2012, in excess of 1,900 jobs have been eliminated under the Aon Hewitt Plan. For the years ended December 31, 2012 and 2011, the Company recorded $98 million and $105 million of total expense, respectively. Charges related to the restructuring are included in Compensation and benefits and Other general expenses in the accompanying Consolidated Statements of Income.

The following summarizes restructuring and related costs by type that have been incurred and are estimated to be incurred through the end of the restructuring initiative related to the Aon Hewitt Plan (in millions):

	2010		2011		2012		Total To Date		Estimated Total Cost for Restructuring Plan (1)


Workforce reduction	$	49	$	64	$	74	$	187	$	192
Lease consolidation		3		32		18		53		95
Asset impairments		—		7		4		11		33
Other costs associated with restructuring (2)		—		2		2		4		5

Total restructuring and related expenses	$	52	$	105	$	98	$	255	$	325

(1): Actual costs, when incurred, may vary due to changes in the assumptions built into this plan. Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives.
(2): Other costs associated with restructuring initiatives, including moving costs and consulting and legal fees, are recognized when incurred.

The following summarizes the restructuring and related expenses, by segment, that have been incurred and are estimated to be incurred through the end of the restructuring initiative related to the Aon Hewitt Plan (in millions):

	2010		2011		2012		Total To Date		Estimated Total Cost for Restructuring Plan (1)


HR Solutions	$	52	$	49	$	66	$	167	$	226
Risk Solutions		—		56		32		88		99

Total restructuring and related expenses	$	52	$	105	$	98	$	255	$	325

(1): Costs included in the Risk Solutions segment are associated with the transfer of the health and benefits consulting business from HR Solutions to Risk Solutions effective January 1, 2012. Costs incurred in 2011 in the HR Solutions segment of $41 million related to the health and benefits consulting business have been reclassified and presented in the Risk Solutions segment.

Aon Benfield Restructuring Plan

The Company announced a global restructuring plan ("Aon Benfield Plan") in conjunction with its acquisition of Benfield in 2008. The Aon Benfield Plan was intended to integrate and streamline operations across the combined Aon Benfield organization. The Aon Benfield Plan included 810 job eliminations. Additionally, duplicate space and assets were abandoned. The Company incurred all remaining costs for the Aon Benfield Plan and the plan was closed in 2012.

The Company recorded $6 million of restructuring and related charges in 2012. All costs associated with the Aon Benfield Plan are included in the Risk Solutions segment. Charges related to the restructuring are included in Compensation and benefits and Other general expenses in the accompanying Consolidated Statements of Income.

The following summarizes the restructuring and related costs by type that were incurred through the end of the restructuring initiative related to the Aon Benfield Plan (in millions):

	Purchase Price Allocation		2009		2010		2011			2012		Total Cost for Restructuring Period


Workforce reduction	$	32	$	38	$	15	$	33		$	6	$	124
Lease consolidation		20		14		7		(15	)		—		26
Asset impairments		—		2		2		—			—		4
Other costs associated with restructuring		1		1		2		1			—		5

Total restructuring and related expenses	$	53	$	55	$	26	$	19		$	6	$	159

As of December 31, 2012, the Company's liabilities for its restructuring plans are as follows (in millions):

	Aon Hewitt Plan			Aon Benfield Plan			2007 Plan			Other			Total


Balance at January 1, 2010	$	—		$	45		$	202		$	16		$	263
Assumed Hewitt restructuring liability (1)		43			—			—			—			43
Expensed		52			24			92			—			168
Cash payments		(8	)		(38	)		(178	)		(8	)		(232	)
Foreign exchange translation and other		1			(5	)		(3	)		2			(5	)

Balance at December 31, 2010	$	88		$	26		$	113		$	10		$	237

Expensed		98			19			(11	)		—			106
Cash payments		(93	)		(24	)		(59	)		(2	)		(178	)
Foreign exchange translation and other		2			(1	)		7			—			8

Balance at December 31, 2011	$	95		$	20		$	50		$	8		$	173

Expensed		94			6			(3	)		—			97
Cash payments		(95	)		(24	)		(18	)		(5	)		(142	)
Stock compensation		—			(1	)		—			—			(1	)
Foreign exchange translation and other		2			2			6			—			10

Balance at December 31, 2012	$	96		$	3		$	35		$	3		$	137

(1): The Company assumed a $43 million net real estate related restructuring liability in connection with the Hewitt acquisition.

The Company's unpaid restructuring liabilities are included in both Accounts payable and accrued liabilities and Other non-current liabilities in the Consolidated Statements of Financial Position.