Guarantee of Registered Securities

12 Months Ended

Dec. 31, 2012

Guarantee of Registered Securities

Guarantee of Registered Securities

19.    Guarantee of Registered Securities

        As described in Note 16, in connection with the Redomestication, on April 2, 2012, Aon plc entered into various agreements pursuant to which it agreed to guarantee the obligations of Aon Corporation arising under issued and outstanding debt securities. Aon Corporation is a 100% indirectly owned subsidiary of Aon plc. The debt securities that are subject to Rule 3-10 of Regulation S-X are the 7.375% debt securities due December 2012, the 3.50% senior notes due September 2015, the 3.125% senior notes due May 2016, the 5.00% senior notes due September 2020, the 8.205% junior subordinated deferrable interest debentures due January 2027 and the 6.25% senior notes due September 2040. All guarantees of Aon plc are full and unconditional. There are no subsidiaries of Aon plc that are guarantors of the debt.

        As described in Note 8, in connection with the debt exchange, Aon Corporation entered into an agreement pursuant to which it agreed to guarantee the obligations of Aon plc arising under the 4.250% senior notes due 2042 exchanged for Aon Corporation's outstanding 8.205% junior subordinated deferrable interest debentures due January 2027. The 4.250% senior notes due 2042 are subject to Rule 3-10 of Regulation S-X. The guarantee of Aon Corporation is full and unconditional. There are no subsidiaries of Aon plc, other than Aon Corporation, that are guarantors of this debt security.

        The following tables set forth condensed consolidating statements of income, comprehensive income and cash flows for the years ended December 31, 2012, 2011, and 2010, and condensed consolidating statements of financial position as of December 31, 2012 and December 31, 2011 in accordance with Rule 3-10 of Regulation S-X. The condensed consolidating financial information includes the accounts of Aon plc, the accounts of Aon Corporation, and the combined accounts of the non-guarantor subsidiaries. The condensed consolidating financial statements are presented in all periods as a merger under common control, with Aon plc presented as the parent company in all periods prior and subsequent to the Redomestication. The principal consolidating adjustments are to eliminate the investment in subsidiaries and intercompany balances and transactions.

        Certain amounts in prior years' condensed consolidating financial statements have been reclassified to conform to the 2012 presentation. In prior periods, amounts invoiced between entities related to intercompany royalties were recognized in Other general expenses. These amounts are now recognized in Other income (expense) in the condensed consolidated financial statements. The Company believes this provides greater clarity into the results from operations.

Condensed Consolidating Statement of Income

	Year Ended December 31, 2012
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenue
Commissions, fees and other	$	2		$	1		$	11,474		$	(1	)	$	11,476
Fiduciary investment income		—			1			37			—			38
Total revenue		2			2			11,511			(1	)		11,514
Expenses
Compensation and benefits		117			24			6,568			—			6,709
Other general expenses		18			47			3,145			(1	)		3,209
Total operating expenses		135			71			9,713			(1	)		9,918
Operating (loss) income		(133	)		(69	)		1,798			—			1,596
Interest income		—			1			9			—			10
Interest expense		—			(164	)		(64	)		—			(228	)
Intercompany interest (expense) income		(19	)		190			(171	)		—			—
Other income		—			57			(54	)		—			3
(Loss) income from continuing operations before income taxes		(152	)		15			1,518			—			1,381
Income tax (benefit) expense		(37	)		8			389			—			360
(Loss) income from continuing operations		(115	)		7			1,129			—			1,021
Loss from discontinued operations before taxes		—			—			(1	)		—			(1	)
Income tax expense		—			—			—			—			—
Loss from discontinued operations		—			—			(1	)		—			(1	)
Equity in earnings of subsidiaries, net of tax		1,108			988			995			(3,091	)		—
Net income		993			995			2,123			(3,091	)		1,020
Less: Net income attributable to noncontrolling interests		—			—			27			—			27
Net income attributable to Aon shareholders	$	993		$	995		$	2,096		$	(3,091	)	$	993

Condensed Consolidating Statement of Income

	Year Ended December 31, 2011
(millions)	Aon plc		Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenue
Commissions, fees and other	$	—	$	—		$	11,236		$	(1	)	$	11,235
Fiduciary investment income		—		2			50			—			52
Total revenue		—		2			11,286			(1	)		11,287
Expenses
Compensation and benefits		—		118			6,449			—			6,567
Other general expenses		—		47			3,078			(1	)		3,124
Total operating expenses		—		165			9,527			(1	)		9,691
Operating (loss) income		—		(163	)		1,759			—			1,596
Interest income		—		4			14			—			18
Interest expense		—		(171	)		(74	)		—			(245	)
Intercompany interest income (expense)		—		180			(180	)		—			—
Other (expense) income		—		32			(17	)		—			15
(Loss) income from continuing operations before income taxes		—		(118	)		1,502			—			1,384
Income tax (benefit) expense		—		(43	)		421			—			378
(Loss) income from continuing operations		—		(75	)		1,081			—			1,006
Income from discontinued operations before taxes		—		5			—			—			5
Income tax expense		—		1			—			—			1
Income from discontinued operations		—		4			—			—			4
Equity in earnings of subsidiaries, net of tax		979		921			850			(2,750	)		—
Net income		979		850			1,931			(2,750	)		1,010
Less: Net income attributable to noncontrolling interests		—		—			31			—			31
Net income attributable to Aon shareholders	$	979	$	850		$	1,900		$	(2,750	)	$	979

Condensed Consolidating Statement of Income

	Year Ended December 31, 2010
(millions)	Aon plc		Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustment			Consolidated
Revenue
Commissions, fees and other	$	—	$	—		$	8,459		$	(2	)	$	8,457
Fiduciary investment income		—		15			40			—			55
Total revenue		—		15			8,499			(2	)		8,512
Expenses
Compensation and benefits		—		47			5,050			—			5,097
Other general expenses		—		50			2,123			(2	)		2,171
Total operating expenses		—		97			7,173			(2	)		7,268
Operating (loss) income		—		(82	)		1,326			—			1,244
Interest income		—		7			8			—			15
Interest expense		—		(105	)		(77	)					(182	)
Intercompany interest income (expense)		—		133			(133	)					—
Other (expense) income		—		14			(32	)					(18	)
(Loss) income from continuing operations before taxes		—		(33	)		1,092			—			1,059
Income tax (benefit) expense		—		(14	)		314			—			300
(Loss) income from continuing operations		—		(19	)		778			—			759
Loss from discontinued operations before taxes		—		(39	)		—			—			(39	)
Income tax benefit		—		(12	)		—			—			(12	)
Loss from discontinued operations		—		(27	)		—			—			(27	)
Equity in earnings of subsidiaries, net of tax		706		622			576			(1,904	)		—
Net income		706		576			1,354			(1,904	)		732
Less: Net income attributable to noncontrolling interests		—		—			26			—			26
Net income attributable to Aon shareholders	$	706	$	576		$	1,328		$	(1,904	)	$	706

Condensed Consolidating Statement of Comprehensive Income

	Year Ended December 31, 2012
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income	$	993		$	995		$	2,123		$	(3,091	)	$	1,020
Less: Net income attributable to noncontrolling interests		—			—			27			—			27
Net income attributable to Aon shareholders	$	993		$	995		$	2,096		$	(3,091	)	$	993
Other comprehensive income, net of tax:
Change in fair value of derivatives		—			2			7			—			9
Foreign currency translation adjustments		—			24			85			—			109
Post-retirement benefit obligation		—			(67	)		(291	)		—			(358	)
Total other comprehensive loss		—			(41	)		(199	)		—			(240	)
Equity in other comprehensive (loss) income of subsidiaries, net of tax		(240	)		(200	)		(241	)		681			—
Less: Other comprehensive income attributable to noncontrolling interests		—			—			—			—			—
Total other comprehensive loss attributable to Aon shareholders		(240	)		(241	)		(440	)		681			(240	)
Comprehensive income attributable to Aon shareholders	$	753		$	754		$	1,656		$	(2,410	)	$	753

Condensed Consolidating Statement of Comprehensive Income

	Year Ended December 31, 2011
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income	$	979		$	850		$	1,931		$	(2,750	)	$	1,010
Less: Net income attributable to noncontrolling interests		—			—			31			—			31
Net income attributable to Aon shareholders	$	979		$	850		$	1,900		$	(2,750	)	$	979
Other comprehensive income, net of tax:
Change in fair value of derivatives		—			—			(13	)		—			(13	)
Foreign currency translation adjustments		—			(6	)		(37	)		—			(43	)
Post-retirement benefit obligation		—			(173	)		(223	)		—			(396	)
Total other comprehensive loss		—			(179	)		(273	)		—			(452	)
Equity in other comprehensive (loss) income of subsidiaries, net of tax		(453	)		(277	)		(456	)		1,186			—
Less: Other comprehensive income attributable to noncontrolling interests		—			—			1			—			1
Total other comprehensive loss attributable to Aon shareholders		(453	)		(456	)		(730	)		1,186			(453	)
Comprehensive income attributable to Aon shareholders	$	526		$	394		$	1,170		$	(1,564	)	$	526

Condensed Consolidating Statement of Comprehensive Income

	Year Ended December 31, 2010
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income	$	706		$	576		$	1,354		$	(1,904	)	$	732
Less: Net income attributable to noncontrolling interests		—			—			26			—			26
Net income attributable to Aon shareholders	$	706		$	576		$	1,328		$	(1,904	)	$	706
Other comprehensive income, net of tax:
Change in in accounting principle		—			(44	)		—			—			(44	)
Change in fair value of derivatives		—			(17	)		(7	)		—			(24	)
Foreign currency translation adjustments		—			125			(260	)		—			(135	)
Post-retirement benefit obligation		—			(62	)		21			—			(41	)
Total other comprehensive income (loss)		—			2			(246	)		—			(244	)
Equity in other comprehensive (loss) income of subsidiaries, net of tax		(242	)		(231	)		(229	)		702			—
Less: Other comprehensive income attributable to noncontrolling interests		—			—			(2	)		—			(2	)
Total other comprehensive loss attributable to Aon shareholders		(242	)		(229	)		(473	)		702			(242	)
Comprehensive income attributable to Aon shareholders	$	464		$	347		$	855		$	(1,202	)	$	464

Condensed Consolidating Statement of Financial Position

	As of December 31, 2012
(millions)	Aon plc		Aon Corporation		Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Cash and cash equivalents	$	131	$	199	$	(39	)	$	—		$	291
Short-term investments		—		89		257			—			346
Receivables, net		5		1		3,095			—			3,101
Fiduciary assets		—		—		12,214			—			12,214
Intercompany receivables		—		2,092		3,545			(5,637	)		—
Other current assets		7		53		370			—			430
Total Current Assets		143		2,434		19,442			(5,637	)		16,382
Goodwill		—		—		8,943			—			8,943
Intangible assets, net		—		—		2,975			—			2,975
Fixed assets, net		—		—		820			—			820
Investments		—		49		116			—			165
Deferred tax assets		117		620		266			(718	)		285
Intercompany receivables		166		1,997		2,350			(4,513	)		—
Other non-current assets		—		115		908			(107	)		916
Investments in subsidiary		10,398		10,522		8,322			(29,242	)		—
TOTAL ASSETS	$	10,824	$	15,737	$	44,142		$	(40,217	)	$	30,486
LIABILITIES AND EQUITY
Fiduciary liabilities	$	—	$	—	$	12,214		$	—		$	12,214
Short-term debt and current portion of long-term debt		—		429		23			—			452
Accounts payable and accrued liabilities		10		71		1,772			—			1,853
Intercompany payables		51		2,637		2,162			(4,850	)		—
Other current liabilities		—		49		779			3			831
Total Current Liabilities		61		3,186		16,950			(4,847	)		15,350
Long-term debt		107		2,515		1,091			—			3,713
Deferred tax liabilities		—		—		1,024			(718	)		306
Pension and other post employment liabilities		—		1,294		982			—			2,276
Intercompany payables		2,890		166		2,247			(5,303	)		—
Other non-current liabilities		4		254		885			(107	)		1,036
TOTAL LIABILITIES		3,062		7,415		23,179			(10,975	)		22,681
TOTAL AON SHAREHOLDERS' EQUITY		7,762		8,322		20,920			(29,242	)		7,762
Noncontrolling interests		—		—		43			—			43
TOTAL EQUITY		7,762		8,322		20,963			(29,242	)		7,805
TOTAL LIABILITIES AND EQUITY	$	10,824	$	15,737	$	44,142		$	(40,217	)	$	30,486

Condensed Consolidating Statement of Financial Position

	As of December 31, 2011
(millions)	Parent Guarantor		Subsidiary Issuer			Other Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Cash and cash equivalents	$	—	$	(21	)	$	293	$	—		$	272
Short-term investments		—		321			464		—			785
Receivables, net		—		2			3,181		—			3,183
Fiduciary assets		—		—			10,838		—			10,838
Intercompany receivables		3		610			539		(1,152	)		—
Other current assets		—		57			378		(8	)		427
Total Current Assets		3		969			15,693		(1,160	)		15,505
Goodwill		—		—			8,770		—			8,770
Intangible assets, net		—		—			3,276		—			3,276
Fixed assets, net		—		—			783		—			783
Investments		—		39			200		—			239
Deferred tax assets		—		702			258		(702	)		258
Intercompany receivables		—		2,133			2,202		(4,335	)		—
Other non-current assets		—		198			523		—			721
Investments in subsidiary		10,183		9,269			7,714		(27,166	)		—
TOTAL ASSETS	$	10,186	$	13,310		$	39,419	$	(33,363	)	$	29,552
LIABILITIES AND EQUITY
Fiduciary liabilities	$	—	$	—		$	10,838	$	—		$	10,838
Short-term debt and current portion of long-term debt		—		318			19		—			337
Accounts payable and accrued liabilities		—		78			1,758		(4	)		1,832
Intercompany payables		—		206			609		(815	)		—
Other current liabilities		—		5			752		(4	)		753
Total Current Liabilities		—		607			13,976		(823	)		13,760
Long-term debt		—		3,063			1,092		—			4,155
Deferred tax liabilities		—		—			1,003		(702	)		301
Pension and other post employment liabilities		—		1,407			785		—			2,192
Intercompany payables		2,108		378			2,186		(4,672	)		—
Other non-current liabilities		—		141			883		—			1,024
TOTAL LIABILITIES		2,108		5,596			19,925		(6,197	)		21,432
TOTAL AON SHAREHOLDERS' EQUITY		8,078		7,714			19,452		(27,166	)		8,078
Noncontrolling interests		—		—			42		—			42
TOTAL EQUITY		8,078		7,714			19,494		(27,166	)		8,120
TOTAL LIABILITIES AND EQUITY	$	10,186	$	13,310		$	39,419	$	(33,363	)	$	29,552

Condensed Consolidating Statement of Cash Flows

	Year Ended December 31, 2012
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	(87	)	$	(105	)	$	1,611		$	—	$	1,419
CASH FLOWS FROM INVESTING ACTIVITIES
Sales of long-term investments		—			79			99			—		178
Purchases of long-term investments		—			(12	)		—			—		(12	)
Net sales of short-term investments — non-fiduciary		—			232			208			—		440
Acquisition of businesses, net of cash acquired		(50	)		(55	)		(55	)		—		(160	)
Capital expenditures					—			(269	)		—		(269	)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES		(50	)		244			(17	)		—		177
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury shares		(1,025	)		(100	)		—			—		(1,125	)
Advances from (to) affiliates		1,379			510			(1,889	)		—		—
Issuance of shares for employee benefit plans		69			49			—			—		118
Issuance of debt		—			732			1			—		733
Repayment of debt		—			(1,061	)		(16	)		—		(1,077	)
Cash dividends to shareholders		(155	)		(49	)		—			—		(204	)
Purchase of shares from noncontrolling interests		—			—			(4	)		—		(4	)
Dividends paid to noncontrolling interests		—			—			(27	)		—		(27	)
CASH PROVDED BY (USED FOR) FINANCING ACTIVITIES		268			81			(1,935	)		—		(1,586	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		—			—			9			—		9
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		131			220			(332	)		—		19
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		—			(21	)		293			—		272
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	131		$	199		$	(39	)	$	—	$	291

Condensed Consolidating Statement of Cash Flows

	Year Ended December 31, 2011
(millions)	Aon plc		Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	—	$	(201	)	$	1,219		$	—	$	1,018
CASH FLOWS FROM INVESTING ACTIVITIES
Sales of long-term investments		—		133			57			—		190
Purchases of long-term investments		—		(20	)		(10	)		—		(30	)
Net sales of short-term investments — non-fiduciary		—		115			(123	)		—		(8	)
Acquisition of businesses, net of cash acquired		—		(5	)		(92	)		—		(97	)
Capital expenditures				—			(241	)		—		(241	)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES		—		223			(409	)		—		(186	)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury shares		—		(828	)		—			—		(828	)
Advances from (to) affiliates		—		768			(768	)		—		—
Issuance of shares for employee benefit plans		—		201			—			—		201
Issuance of debt		—		1,290			383			—		1,673
Repayment of debt		—		(1,288	)		(400	)		—		(1,688	)
Cash dividends to shareholders		—		(200	)		—			—		(200	)
Purchase of shares from noncontrolling interests		—		—			(24	)		—		(24	)
Dividends paid to noncontrolling interests		—		—			(30	)		—		(30	)
CASH PROVDED BY (USED FOR) FINANCING ACTIVITIES		—		(57	)		(839	)		—		(896	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		—		—			(10	)		—		(10	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		—		(35	)		(39	)		—		(74	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		—		14			332			—		346
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	—	$	(21	)	$	293		$	—	$	272

Condensed Consolidating Statement of Cash Flows

	Year Ended December 31, 2010
(millions)	Aon plc		Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	—	$	(99	)	$	882		$	—	$	783
CASH FLOWS FROM INVESTING ACTIVITIES
Sales of long-term investments		—		54			36					90
Purchases of long-term investments		—		(24	)		(10	)				(34	)
Net sales of short-term investments — non-fiduciary		—		(262	)		(75	)				(337	)
Acquisition of businesses, net of cash acquired		—		(2,001	)		(77	)				(2,078	)
Capital expenditures		—		—			(180	)				(180	)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES		—		(2,233	)		(306	)		—		(2,539	)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury shares		—		(250	)		—			—		(250	)
Advances from (to) affiliates		—		163			(163	)		—		—
Issuance of shares for employee benefit plans		—		194			—			—		194
Issuance of debt		—		2,592			313			—		2,905
Repayment of debt		—		(173	)		(643	)		—		(816	)
Cash dividends to shareholders		—		(175	)		—			—		(175	)
Purchase of shares from noncontrolling interests		—		—			(15	)		—		(15	)
Dividends paid to noncontrolling interests		—		—			(20	)		—		(20	)
CASH USED FOR FINANCING ACTIVITIES		—		2,351			(528	)		—		1,823
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		—		—			62			—		62
NET DECREASE IN CASH AND CASH EQUIVALENTS		—		19			110			—		129
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		—		(5	)		222			—		217
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	—	$	14		$	332		$	—	$	346