Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

Segment Information

18.    Segment Information

        The Company has two reportable segments: Risk Solutions and HR Solutions. Unallocated income and expenses, when combined with the operating segments and after the elimination of intersegment revenues and expenses, total to the amounts in the Consolidated Financial Statements.

        Reportable operating segments have been determined using a management approach, which is consistent with the basis and manner in which Aon's chief operating decision maker ("CODM") uses financial information for the purposes of allocating resources and evaluating performance. The CODM assesses performance based on operating income and generally accounts for intersegment revenue as if the revenue were from third parties and at what management believes are current market prices. The Company does not present net assets by segment as this information is not reviewed by the CODM.

        Risk Solutions acts as an advisor and insurance and reinsurance broker, helping clients manage their risks, via consultation, as well as negotiation and placement of insurance risk with insurance carriers through Aon's global distribution network.

        HR Solutions partners with organizations to solve their most complex benefits, talent and related financial challenges, and improve business performance by designing, implementing, communicating and administering a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies.

        Aon's total revenue is as follows (in millions):

Years ended December 31	2012			2011			2010
Risk Solutions	$	7,632		$	7,537		$	6,989
HR Solutions		3,925			3,781			1,545
Intersegment elimination		(43	)		(31	)		(22	)
Total revenue	$	11,514		$	11,287		$	8,512

        Commissions, fees and other revenues by product are as follows (in millions):

Years ended December 31	2012			2011			2010
Retail brokerage	$	6,089		$	6,022		$	5,491
Reinsurance brokerage		1,505			1,463			1,444
Total Risk Solutions Segment		7,594			7,485			6,935
Consulting services		1,585			1,546			821
Outsourcing		2,372			2,258			731
Intrasegment		(32	)		(23	)		(8	)
Total HR Solutions Segment		3,925			3,781			1,544
Intersegment		(43	)		(31	)		(22	)
Total commissions, fees and other revenues	$	11,476		$	11,235		$	8,457

        Fiduciary investment income by segment is as follows (in millions):

Years ended December 31	2012		2011		2010
Risk Solutions	$	38	$	52	$	54
HR Solutions		—		—		1
Total fiduciary investment income	$	38	$	52	$	55

        A reconciliation of segment operating income before tax to income from continuing operations before income taxes is as follows (in millions):

Years ended December 31	2012			2011			2010
Risk Solutions	$	1,493		$	1,413		$	1,328
HR Solutions		289			336			121
Segment income from continuing operations before income taxes		1,782			1,749			1,449
Unallocated expenses		(186	)		(153	)		(205	)
Interest income		10			18			15
Interest expense		(228	)		(245	)		(182	)
Other income (expense)		3			15			(18	)
Income from continuing operations before income taxes	$	1,381		$	1,384		$	1,059

        Unallocated expenses include administrative or other costs not attributable to the operating segments, such as corporate governance costs and the costs associated with corporate investments. Interest income represents income earned primarily on operating cash balances and certain income producing securities. Interest expense represents the cost of worldwide debt obligations.

        Other income (expense) consists of equity earnings, realized gains or losses on the sale of investments, gains or losses on the disposal of businesses, gains or losses on hedging activities, and gains or losses on foreign currency transactions.

        Revenues are generally attributed to geographic areas based on the location of the resources producing the revenues. Intercompany revenues and expenses are eliminated in consolidated results.

        Consolidated revenue by geographic area is as follows (in millions):

Years ended December 31	Total		United States		Americas other than U.S.		United Kingdom		Europe, Middle East, & Africa		Asia Pacific
2012	$	11,514	$	5,336	$	1,190	$	1,541	$	2,271	$	1,176
2011		11,287		5,134		1,176		1,519		2,377		1,081
2010		8,512		3,400		978		1,322		2,035		777

        Consolidated non-current assets by geographic area are as follows (in millions):

As of December 31	Total		United States		Americas other than U.S.		United Kingdom		Europe, Middle East, & Africa		Asia Pacific
2012	$	13,819	$	8,355	$	599	$	1,721	$	2,462	$	682
2011		13,789		8,617		574		1,589		2,448		561