Guarantee of Registered Securities (Tables)

6 Months Ended

Jun. 30, 2012

Guarantee of Registered Securities

Results of Operations

Condensed Consolidating Statement of Income

	Three Months Ended June 30, 2012
							Other
	Parent			Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor			Issuer			Subsidiaries			Adjustments			Consolidated
Revenue
Commissions, fees and other	$	—		$	—		$	2,813		$	—		$	2,813
Fiduciary investment income	—			—			8			—			8
Total revenue	—			—			2,821			—			2,821
Expenses
Compensation and benefits	57			—			1,582			—			1,639
Other general expenses	4			7			777			—			788
Total operating expenses	61			7			2,359			—			2,427
Operating (loss) income	(61		)	(7		)	462			—			394
Interest income	—			—			2			—			2
Interest expense	—			(40		)	(17		)	—			(57		)
Intercompany interest (expense) income	(3		)	47			(44		)	—			—
Other (expense) income	—			(5		)	17			—			12
(Loss) income from continuing operations before taxes	(64		)	(5		)	420			—			351
Income tax (benefit) expense	(16		)	(2		)	114			—			96
(Loss) income from continuing operations	(48		)	(3		)	306			—			255
Loss from discontinued operations before taxes	—			—			(1		)	—			(1		)
Income taxes	—			—			—			—			—
Loss from discontinued operations	—			—			(1		)	—			(1		)
Equity in earnings of subsidiaries, net of tax	294			268			265			(827		)	—
Net income	246			265			570			(827		)	254
Less: Net income attributable to noncontrolling interests	—			—			8			—			8
Net income attributable to Aon shareholders	$	246		$	265		$	562		$	(827	)	$	246

Condensed Consolidating Statement of Income

	Three Months Ended June 30, 2011
						Other
	Parent		Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor		Issuer			Subsidiaries			Adjustments			Consolidated
Revenue
Commissions, fees and other	$	—	$	—		$	2,799		$	—		$	2,799
Fiduciary investment income	—		—			12			—			12
Total revenue	—		—			2,811			—			2,811
Expenses
Compensation and benefits	—		39			1,573			—			1,612
Other general expenses	—		—			759			—			759
Total operating expenses	—		39			2,332			—			2,371
Operating income	—		(39		)	479			—			440
Interest income	—		2			2			—			4
Interest expense	—		(39		)	(24		)	—			(63		)
Intercompany interest income (expense)	—		44			(44		)	—			—
Other expense	—		(25		)	(4		)	—			(29		)
(Loss) income from continuing operations before taxes	—		(57		)	409			—			352
Income tax (benefit) expense	—		(21		)	108			—			87
(Loss) income from continuing operations	—		(36		)	301			—			265
Income from discontinued operations before taxes	—		1			—			—			1
Income tax benefit	—		(1		)	—			—			(1		)
Income from discontinued operations	—		2			—			—			2
Equity in earnings of subsidiaries, net of tax	258		263			229			(750		)	—
Net income	258		229			530			(750		)	267
Less: Net income attributable to noncontrolling interests	—		—			9			—			9
Net income attributable to Aon shareholders	$	258	$	229		$	521		$	(750	)	$	258

Condensed Consolidating Statement of Income

	Six Months Ended June 30, 2012
							Other
	Parent			Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor			Issuer			Subsidiaries			Adjustments			Consolidated
Revenue
Commissions, fees and other	$	—		$	—		$	5,642		$	—		$	5,642
Fiduciary investment income	—			1			19			—			20
Total revenue	—			1			5,661			—			5,662
Expenses
Compensation and benefits	57			66			3,177			—			3,300
Other general expenses	3			22			1,541			—			1,566
Total operating expenses	60			88			4,718			—			4,866
Operating (loss) income	(60		)	(87		)	943			—			796
Interest income	—			—			5			—			5
Interest expense	—			(80		)	(36		)	—			(116		)
Intercompany interest (expense) income	(3		)	93			(90		)	—			—
Other income	—			3			9			—			12
(Loss) income from continuing operations before taxes	(63		)	(71		)	831			—			697
Income tax (benefit) expense	(16		)	(27		)	236			—			193
(Loss) income from continuing operations	(47		)	(44		)	595			—			504
Loss from discontinued operations before taxes	—			—			(1		)	—			(1		)
Income taxes	—			—			—			—			—
Loss from discontinued operations	—			—			(1		)	—			(1		)
Equity in earnings of subsidiaries, net of tax	531			517			473			(1,521		)	—
Net income	484			473			1,067			(1,521		)	503
Less: Net income attributable to noncontrolling interest	—			—			19			—			19
Net income attributable to Aon shareholders	$	484		$	473		$	1,048		$	(1,521	)	$	484

Condensed Consolidating Statement of Income

	Six Months Ended June 30, 2011
						Other
	Parent		Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor		Issuer			Subsidiaries			Adjustments			Consolidated
Revenue
Commissions, fees and other	$	—	$	—		$	5,547		$	—		$	5,547
Fiduciary investment income	—		1			22			—			23
Total revenue	—		1			5,569			—			5,570
Expenses
Compensation and Benefits	—		100			3,109			—			3,209
Other general expenses	—		—			1,523			—			1,523
Total operating expenses	—		100			4,632			—			4,732
Operating (loss) income	—		(99		)	937			—			838
Interest income	—		4			6			—			10
Interest expense	—		(91		)	(35		)	—			(126		)
Intercompany interest income (expense)	—		88			(88		)	—			—
Other (expense) income	—		(27		)	13			—			(14		)
(Loss) income from continuing operations before taxes	—		(125		)	833			—			708
Income tax (benefit) expense	—		(46		)	236			—			190
(Loss) income from continuing operations	—		(79		)	597			—			518
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	504		510			435			(1,449		)	—
Net income	504		435			1,032			(1,449		)	522
Less: Net income attributable to noncontrolling interests	—		—			18			—			18
Net income attributable to Aon shareholders	$	504	$	435		$	1,014		$	(1,449	)	$	504

Condensed Consolidating Statement of Comprehensive Income

	Three Months Ended June 30, 2012
							Other
	Parent			Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor			Issuer			Subsidiaries			Adjustments			Consolidated
Net income	$	246		$	265		$	570		$	(827	)	$	254
Less: Net income attributable to noncontrolling interests	—			—			8			—			8
Net income attributable to Aon shareholders	$	246		$	265		$	562		$	(827	)	$	246
Other comprehensive loss, net of tax:
Change in fair value of derivatives	—			—			(17		)	—			(17		)
Foreign currency translation adjustments	—			(1		)	(196		)	—			(197		)
Post-retirement benefit obligation	—			5			13			—			18
Total other comprehensive income (loss)	—			4			(200		)	—			(196		)
Equity in other comprehensive (loss) income of subsidiaries, net of tax	(193		)	(197		)	(193		)	583			—
Less: Other comprehensive loss attributable to noncontrolling interests	—			—			(3		)	—			(3		)
Total other comprehensive loss attributable to Aon shareholders	(193		)	(193		)	(390		)	583			(193		)
Comprehensive income (loss) attributable to Aon shareholders	$	53		$	72		$	172		$	(244	)	$	53

Condensed Consolidating Statement of Comprehensive Income

	Three Months Ended June 30, 2011
						Other
	Parent		Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor		Issuer			Subsidiaries			Adjustments			Consolidated
Net income	$	258	$	229		$	530		$	(750	)	$	267
Less: Net income attributable to noncontrolling interests	—		—			9			—			9
Net income attributable to Aon shareholders	$	258	$	229		$	521		$	(750	)	$	258
Other comprehensive income, net of tax:
Change in fair value of derivatives	—		—			(1		)	—			(1		)
Foreign currency translation adjustments	—		(7		)	9			—			2
Post-retirement benefit obligation	—		2			13			—			15
Total other comprehensive (loss) income	—		(5		)	21			—			16
Equity in other comprehensive income (loss) of subsidiaries, net of tax	16		21			16			(53		)	—
Less: Other comprehensive income attributable to noncontrolling interests	—		—			—			—			—
Total other comprehensive income attributable to Aon shareholders	16		16			37			(53		)	16
Comprehensive income attributable to Aon Shareholders	$	274	$	245		$	558		$	(803	)	$	274

Condensed Consolidating Statement of Comprehensive Income

	Six Months Ended June 30, 2012
(millions)	Parent Guarantor			Subsidiary Issuer			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income	$	484		$	473		$	1,067		$	(1,521	)	$	503
Less: Net income attributable to noncontrolling interests	—			—			19			—			19
Net income attributable to Aon shareholders	$	484		$	473		$	1,048		$	(1,521	)	$	484
Other comprehensive loss, net of tax:
Change in fair value of derivatives	—			1			(11		)	—			(10		)
Foreign currency translation adjustments	—			—			(93		)	—			(93		)
Post-retirement benefit obligation	—			7			32			—			39
Total other comprehensive income (loss)	—			8			(72		)	—			(64		)
Equity in other comprehensive (loss) income of subsidiaries, net of tax	(62		)	(70		)	(62		)	194			—
Less: Other comprehensive loss attributable to noncontrolling interests	—			—			(2		)	—			(2		)
Total other comprehensive loss attributable to Aon shareholders	(62		)	(62		)	(132		)	194			(62		)
Comprehensive income attributable to Aon shareholders	$	422		$	411		$	916		$	(1,327	)	$	422

Condensed Consolidating Statement of Comprehensive Income

	Six Months Ended June 30, 2011
						Other
	Parent		Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor		Issuer			Subsidiaries			Adjustments			Consolidated
Net income	$	504	$	435		$	1,032		$	(1,449	)	$	522
Less: Net income attributable to noncontrolling interests	—		—			18			—			18
Net income attributable to Aon shareholders	$	504	$	435		$	1,014		$	(1,449	)	$	504
Other comprehensive income, net of tax:
Change in fair value of derivatives	—		(1		)	(4		)	—			(5		)
Foreign currency translation adjustments	—		(9		)	206			—			197
Post-retirement benefit obligation	—		3			24			—			27
Total other comprehensive (loss) income	—		(7		)	226			—			219
Equity in other comprehensive income (loss) of subsidiaries, net of tax	219		223			216			(658		)	—
Less: Other comprehensive income attributable to noncontrolling interests	—		—			—			—			—
Total other comprehensive income attributable to Aon shareholders	219		216			442			(658		)	219
Comprehensive income attributable to Aon shareholders	$	723	$	651		$	1,456		$	(2,107	)	$	723

Balance Sheet

Condensed Consolidating Statement of Financial Position

	June 30, 2012
					Other
	Parent		Subsidiary		Non-Guarantor		Consolidating
(millions)	Guarantor		Issuer		Subsidiaries		Adjustments			Consolidated
ASSETS
Cash and cash equivalents	$	19	$	80	$	187	$	—		$	286
Short-term investments	—		111		405		—			516
Receivables, net	1		3		3,071		—			3,075
Fiduciary assets	—		—		12,736		—			12,736
Intercompany receivables	21		1,296		1,826		(3,143		)	—
Other current assets	—		90		353		—			443
Total Current Assets	41		1,580		18,578		(3,143		)	17,056
Goodwill	—		—		8,713		—			8,713
Intangible assets, net	—		—		3,106		—			3,106
Fixed assets, net	—		—		797		—			797
Investments	—		41		159		—			200
Intercompany receivables	—		2,226		2,171		(4,397		)	—
Other non-current assets	—		704		231		—			935
Investment in subsidiary	10,704		9,966		8,013		(28,683		)	—
TOTAL ASSETS	$	10,745	$	14,517	$	41,768	$	(36,223	)	$	30,807
LIABILITIES AND EQUITY
Fiduciary liabilities	$	—	$	—	$	12,736	$	—		$	12,736
Short-term debt and current portion of long-term debt	—		372		20		—			392
Accounts payable and accrued liabilities	5		75		1,259		—			1,339
Intercompany payables	30		1,123		1,331		(2,484		)	—
Other current liabilities	1		47		685		—			733
Total Current Liabilities	36		1,617		16,031		(2,484		)	15,200
Long-term debt	—		3,041		1,057		—			4,098
Pension and other post employment liabilities	—		1,322		645		—			1,967
Intercompany payables	2,400		360		2,296		(5,056		)	—
Other non-current liabilities	157		164		1,011		—			1,332
TOTAL LIABILITIES	2,593		6,504		21,040		(7,540		)	22,597
TOTAL AON SHAREHOLDERS’ EQUITY	8,152		8,013		20,670		(28,683		)	8,152
Noncontrolling interests	—		—		58		—			58
TOTAL EQUITY	8,152		8,013		20,728		(28,683		)	8,210
TOTAL LIABILITIES AND EQUITY	$	10,745	$	14,517	$	41,768	$	(36,223	)	$	30,807

Condensed Consolidating Statement of Financial Position

	Dec. 31, 2011
						Other
	Parent		Subsidiary			Non-Guarantor		Consolidating
(millions)	Guarantor		Issuer			Subsidiaries		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			374		(4		)	427
Total Current Assets	3		969			15,689		(1,156		)	15,505
Goodwill	—		—			8,770		—			8,770
Intangible assets, net	—		—			3,276		—			3,276
Fixed assets, net	—		—			783		—			783
Investments	—		39			200		—			239
Intercompany receivables	—		2,133			2,202		(4,335		)	—
Other non-current assets	—		900			79		—			979
Investment in subsidiary	10,183		9,269			7,714		(27,166		)	—
TOTAL ASSETS	$	10,186	$	13,310		$	38,713	$	(32,657	)	$	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			748		—			753
Total Current Liabilities	—		607			13,972		(819		)	13,760
Long-term debt	—		3,063			1,092		—			4,155
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			1,183		—			1,325
TOTAL LIABILITIES	2,108		5,596			19,219		(5,491		)	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		$	38,713	$	(32,657	)	$	29,552

Cash Flows

Condensed Consolidating Statement of Cash Flows

	Six Months Ended June 30, 2012
	Parent			Subsidiary			Other Non-Guarantor			Consolidating
(millions)	Guarantor			Issuer			Subsidiaries			Adjustments		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	(19	)	$	(99	)	$	387		$	—	$	269
CASH FLOWS FROM INVESTING ACTIVITIES
Sales of long-term investments	—			—			51			—		51
Purchase of long-term investments	—			(7		)	—			—		(7		)
Net sales of short-term investments - non-fiduciary	—			211			48					259
Acquisition of businesses, net of cash acquired	—			(55		)	(27		)	—		(82		)
Proceeds from sale of businesses	—			—			1			—		1
Capital expenditures	—			—			(129		)	—		(129		)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			149			(56		)	—		93
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury	(250		)	(100		)	—			—		(350		)
Advances from (to) affiliates	325			118			(443		)	—		—
Issuance of shares for employee benefit plans	15			49			—			—		64
Issuance of debt	—			332			—			—		332
Repayment of debt	—			(298		)	(7		)	—		(305		)
Cash dividends to shareholders	(52		)	(50		)	—			—		(102		)
Purchase of shares from noncontrolling interests	—			—			1			—		1
Dividends paid to noncontrolling interests	—			—			(6		)	—		(6		)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	38			51			(455		)	—		(366		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			18			—		18
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	19			101			(106		)	—		14
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	—			(21		)	293			—		272
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	19		$	80		$	187		$	—	$	286

Condensed Consolidating Statement of Cash Flows

	Six Months Ended June 30, 2011
						Other
	Parent		Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor		Issuer			Subsidiaries			Adjustments		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	—	$	(42	)	$	461		$	—	$	419
CASH FLOWS FROM INVESTING ACTIVITIES
Sales of long-term investments	—		51			45			—		96
Purchase of long-term investments	—		(20		)	—			—		(20		)
Net sales of short-term investments - non-fiduciary			283			7					290
Acquisition of businesses, net of cash acquired	—		(3		)	(92		)	—		(95		)
Proceeds from sale of businesses	—		4			4			—		8
Capital expenditures	—		—			(99		)	—		(99		)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—		315			(135		)	—		180
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury	—		(653		)	—			—		(653		)
Advances from (to) affiliates	—		324			(324		)	—		—
Issuance of shares for employee benefit plans	—		162			—			—		162
Issuance of debt	—		1,090			379			—		1,469
Repayment of debt	—		(1,115		)	(389		)	—		(1,504		)
Cash dividends to shareholders	—		(100		)	—			—		(100		)
Purchase of shares from noncontrolling interests	—		—			—			—		—
Dividends paid to noncontrolling interests	—		—			(6		)	—		(6		)
CASH USED FOR FINANCING ACTIVITIES	—		(292		)	(340		)	—		(632		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—		—			(13		)	—		(13		)
NET DECREASE IN CASH AND CASH EQUIVALENTS	—		(19		)	(27		)	—		(46		)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	—		14			332			—		346
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—	$	(5	)	$	305		$	—	$	300