Guarantee of Registered Securities (Tables)

9 Months Ended

Sep. 30, 2012

Guarantee of Registered Securities

Results of Operations

Condensed Consolidating Statement of Income

	Three Months Ended September 30, 2012
							Other
	Parent			Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor			Issuer			Subsidiaries			Adjustments			Consolidated
Revenue
Commissions, fees and other	$	—		$	—		$	2,726		$	—		$	2,726
Fiduciary investment income	—			—			11			—			11
Total revenue	—			—			2,737			—			2,737
Expenses
Compensation and benefits	34			(11		)	1,597			—			1,620
Other general expenses	19			6			753			—			778
Total operating expenses	53			(5		)	2,350			—			2,398
Operating (loss) income	(53		)	5			387			—			339
Interest income	—			—			1			—			1
Interest expense	—			(44		)	(13		)	—			(57		)
Intercompany interest (expense) income	(8		)	48			(40		)	—			—
Other income (expense)	—			10			(19		)	—			(9		)
(Loss) income from continuing operations before taxes	(61		)	19			316			—			274
Income tax (benefit) expense	(15		)	11			68			—			64
(Loss) income from continuing operations	(46		)	8			248			—			210
Loss from discontinued operations before taxes	—			—			—			—			—
Income taxes	—			—			—			—			—
Loss from discontinued operations	—			—			—			—			—
Equity in earnings of subsidiaries, net of tax	250			209			217			(676		)	—
Net income	204			217			465			(676		)	210
Less: Net income attributable to noncontrolling interests	—			—			6			—			6
Net income attributable to Aon shareholders	$	204		$	217		$	459		$	(676	)	$	204

Condensed Consolidating Statement of Income

	Three Months Ended September 30, 2011
						Other
	Parent		Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor		Issuer			Subsidiaries			Adjustments			Consolidated
Revenue
Commissions, fees and other	$	—	$	—		$	2,708		$	—		$	2,708
Fiduciary investment income	—		—			15			—			15
Total revenue	—		—			2,723			—			2,723
Expenses
Compensation and benefits	—		(2		)	1,636			—			1,634
Other general expenses	—		20			741			—			761
Total operating expenses	—		18			2,377			—			2,395
Operating (loss) income	—		(18		)	346			—			328
Interest income	—		—			4			—			4
Interest expense	—		(40		)	(20		)	—			(60		)
Intercompany interest income (expense)	—		47			(47		)	—			—
Other income	—		—			20			—			20
(Loss) income from continuing operations before taxes	—		(11		)	303			—			292
Income tax (benefit) expense	—		(3		)	87			—			84
(Loss) income from continuing operations	—		(8		)	216			—			208
Income from discontinued operations before taxes	—		—			—			—			—
Income tax benefit	—		—			—			—			—
Income from discontinued operations	—		—			—			—			—
Equity in earnings of subsidiaries, net of tax	198		174			166			(538		)	—
Net income	198		166			382			(538		)	208
Less: Net income attributable to noncontrolling interests	—		—			10			—			10
Net income attributable to Aon shareholders	$	198	$	166		$	372		$	(538	)	$	198

Condensed Consolidating Statement of Income

	Nine Months Ended September 30, 2012
							Other
	Parent			Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor			Issuer			Subsidiaries			Adjustments			Consolidated
Revenue
Commissions, fees and other	$	—		$	—		$	8,368		$	—		$	8,368
Fiduciary investment income	—			—			31			—			31
Total revenue	—			—			8,399			—			8,399
Expenses
Compensation and benefits	18			22			4,880			—			4,920
Other general expenses	21			26			2,297			—			2,344
Total operating expenses	39			48			7,177			—			7,264
Operating (loss) income	(39		)	(48		)	1,222			—			1,135
Interest income	—			1			5			—			6
Interest expense	—			(124		)	(49		)	—			(173		)
Intercompany interest (expense) income	(10		)	140			(130		)	—			—
Other income	—			12			(9		)	—			3
(Loss) income from continuing operations before taxes	(49		)	(19		)	1,039			—			971
Income tax (benefit) expense	—			(4		)	261			—			257
(Loss) income from continuing operations	(49		)	(15		)	778			—			714
Loss from discontinued operations before taxes	—			—			(1		)	—			(1		)
Income taxes	—			—			—			—			—
Loss from discontinued operations	—			—			(1		)	—			(1		)
Equity in earnings of subsidiaries, net of tax	737			662			647			(2,046		)	—
Net income	688			647			1,424			(2,046		)	713
Less: Net income attributable to noncontrolling interest	—			—			25			—			25
Net income attributable to Aon shareholders	$	688		$	647		$	1,399		$	(2,046	)	$	688

Condensed Consolidating Statement of Income

	Nine Months Ended September 30, 2011
						Other
	Parent		Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor		Issuer			Subsidiaries			Adjustments			Consolidated
Revenue
Commissions, fees and other	$	—	$	—		$	8,255		$	—		$	8,255
Fiduciary investment income	—		2			36			—			38
Total revenue	—		2			8,291			—			8,293
Expenses
Compensation and Benefits	—		(7		)	4,850			—			4,843
Other general expenses	—		40			2,245			—			2,284
Total operating expenses	—		33			7,095			—			7,127
Operating (loss) income	—		(31		)	1,196			—			1,166
Interest income	—		4			10			—			14
Interest expense	—		(131		)	(55		)	—			(186		)
Intercompany interest income (expense)	—		135			(135		)	—			—
Other (expense) income	—		(27		)	33			—			6
(Loss) income from continuing operations before taxes	—		(50		)	1,049			—			1,000
Income tax (benefit) expense	—		(18		)	292			—			274
(Loss) income from continuing operations	—		(32		)	757			—			726
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	702		628			600			(1,930		)	—
Net income	702		600			1,357			(1,930		)	730
Less: Net income attributable to noncontrolling interests	—		—			28			—			28
Net income attributable to Aon shareholders	$	702	$	600		$	1,329		$	(1,930	)	$	702

Condensed Consolidating Statement of Comprehensive Income

	Three Months Ended September 30, 2012
					Other
	Parent		Subsidiary		Non-Guarantor			Consolidating
(millions)	Guarantor		Issuer		Subsidiaries			Adjustments			Consolidated
Net income	$	204	$	217	$	465		$	(676	)	$	210
Less: Net income attributable to noncontrolling interests	—		—		6			—			6
Net income attributable to Aon shareholders	$	204	$	217	$	459		$	(676	)	$	204
Other comprehensive loss, net of tax:
Change in fair value of derivatives	—		1		14			—			15
Foreign currency translation adjustments	—		17		147			—			164
Post-retirement benefit obligation	—		9		(2		)	—			7
Total other comprehensive income (loss)	—		27		159			—			186
Equity in other comprehensive (loss) income of subsidiaries, net of tax	182		155		182			(519		)	—
Less: Other comprehensive loss attributable to noncontrolling interests	—		—		4			—			4
Total other comprehensive loss attributable to Aon shareholders	182		182		337			(519		)	182
Comprehensive income (loss) attributable to Aon shareholders	$	386	$	399	$	796		$	(1,195	)	$	386

Condensed Consolidating Statement of Comprehensive Income

	Three Months Ended September 30, 2011
							Other
	Parent			Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor			Issuer			Subsidiaries			Adjustments			Consolidated
Net income	$	198		$	166		$	382		$	(538	)	$	208
Less: Net income attributable to noncontrolling interests	—			—			10			—			10
Net income attributable to Aon shareholders	$	198		$	166		$	372		$	(538	)	$	198
Other comprehensive income, net of tax:
Change in fair value of derivatives	—			—			(9		)	—			(9		)
Foreign currency translation adjustments	—			(5		)	(204		)	—			(209		)
Post-retirement benefit obligation	—			4			11			—			15
Total other comprehensive (loss) income	—			(1		)	(202		)	—			(203		)
Equity in other comprehensive income (loss) of subsidiaries, net of tax	(202		)	(201		)	(202		)	605			—
Less: Other comprehensive income attributable to noncontrolling interests	—			—			(1		)	—			(1		)
Total other comprehensive income attributable to Aon shareholders	(202		)	(202		)	(403		)	605			(202		)
Comprehensive income attributable to Aon Shareholders	$	(4	)	$	(36	)	$	(31	)	$	67		$	(4	)

Condensed Consolidating Statement of Comprehensive Income

	Nine Months Ended September 30, 2012
(millions)	Parent Guarantor		Subsidiary Issuer		Other Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Net income	$	688	$	647	$	1,424	$	(2,046	)	$	713
Less: Net income attributable to noncontrolling interests	—		—		25		—			25
Net income attributable to Aon shareholders	$	688	$	647	$	1,399	$	(2,046	)	$	688
Other comprehensive loss, net of tax:
Change in fair value of derivatives	—		1		4		—			5
Foreign currency translation adjustments	—		16		55		—			71
Post-retirement benefit obligation	—		24		22		—			46
Total other comprehensive income (loss)	—		41		81		—			122
Equity in other comprehensive (loss) income of subsidiaries, net of tax	120		78		119		(317		)	—
Less: Other comprehensive loss attributable to noncontrolling interests	—		—		2		—			2
Total other comprehensive loss attributable to Aon shareholders	120		119		198		(317		)	120
Comprehensive income attributable to Aon shareholders	$	808	$	766	$	1,597	$	(2,363	)	$	808

Condensed Consolidating Statement of Comprehensive Income

	Nine Months Ended September 30, 2011
						Other
	Parent		Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor		Issuer			Subsidiaries			Adjustments			Consolidated
Net income	$	702	$	600		$	1,357		$	(1,930	)	$	730
Less: Net income attributable to noncontrolling interests	—		—			28			—			28
Net income attributable to Aon shareholders	$	702	$	600		$	1,329		$	(1,930	)	$	702
Other comprehensive income, net of tax:
Change in fair value of derivatives	—		(1		)	(13		)	—			(14		)
Foreign currency translation adjustments	—		(9		)	(3		)	—			(12		)
Post-retirement benefit obligation	—		13			29			—			42
Total other comprehensive (loss) income	—		3			13			—			16
Equity in other comprehensive income (loss) of subsidiaries, net of tax	17		12			15			(44		)	—
Less: Other comprehensive income attributable to noncontrolling interests	—		—			(1		)	—			(1		)
Total other comprehensive income attributable to Aon shareholders	17		15			29			(44		)	17
Comprehensive income attributable to Aon shareholders	$	719	$	615		$	1,358		$	(1,974	)	$	719

Balance Sheet

Condensed Consolidating Statement of Financial Position

	September30,2012
					Other
	Parent		Subsidiary		Non-Guarantor		Consolidating
(millions)	Guarantor		Issuer		Subsidiaries		Adjustments			Consolidated
ASSETS
Cash and cash equivalents	$	1	$	58	$	231	$	-		$	290
Short-term investments	16		261		441		-			718
Receivables, net	-		2		2,957		-			2,959
Fiduciary assets	-		-		11,343		-			11,343
Intercompany receivables	-		1,677		2,868		(4,545		)	-
Other current assets	-		41		351		-			392
Total Current Assets	17		2,039		18,191		(4,545		)	15,702
Goodwill	-		-		8,856		-			8,856
Intangible assets, net	-		-		3,040		-			3,040
Fixed assets, net	-		-		814		-			814
Investments	-		41		119		-			160
Intercompany receivables	-		2,240		2,171		(4,411		)	-
Other non-current assets	222		659		56		-			937
Investment in subsidiary	10,797		10,349		8,446		(29,592		)	-
TOTAL ASSETS	$	11,036	$	15,328	$	41,693	$	(38,548	)	$	29,509
LIABILITIES AND EQUITY
Fiduciary liabilities	$	-	$	-	$	11,343	$	-		$	11,343
Short-term debt and current portion of long-term debt	-		268		23		-			291
Accounts payable and accrued liabilities	4		86		1,429		-			1,519
Intercompany payables	34		1,779		1,782		(3,595		)	-
Other current liabilities	-		47		754		-			801
Total Current Liabilities	38		2,180		15,331		(3,595		)	13,954
Long-term debt	-		3,030		1,081		-			4,111
Pension, other post retirement and other post employment liabilities	-		1,167		590		-			1,757
Intercompany payables	2,690		359		2,311		(5,360		)	-
Other non-current liabilities	3		146		1,177		-			1,326
TOTAL LIABILITIES	2,731		6,882		20,490		(8,955		)	21,148
TOTAL AON SHAREHOLDERS' EQUITY	8,305		8,446		21,146		(29,592		)	8,305
Noncontrolling interests	-		-		56		-			56
TOTAL EQUITY	8,305		8,446		21,202		(29,592		)	8,361
TOTAL LIABILITIES AND EQUITY	$	11,036	$	15,328	$	41,692	$	(38,547	)	$	29,509

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			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
Intercompany receivables	-		2,133			2,202		(4,335		)	-
Other non-current assets	-		900			781		(702		)	979
Investment 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
Pension, other post retirement and other post employment liabilities	-		1,407			785		-			2,192
Intercompany payables	2,108		378			2,186		(4,672		)	-
Other non-current liabilities	-		141			1,886		(702		)	1,325
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

Cash Flows

Condensed Consolidating Statement of Cash Flows

	NineMonthsEndedSeptember30,2012
	Parent			Subsidiary			Other Non-Guarantor			Consolidating
(millions)	Guarantor			Issuer			Subsidiaries			Adjustments		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	(46	)	$	(189	)	$	1,102		$	-	$	867
CASH FLOWS FROM INVESTING ACTIVITIES
Sales of long-term investments	-			79			92			-		171
Purchase of long-term investments	-			(9		)	-			-		(9		)
Net sales of short-term investments - non-fiduciary	(16		)	61			21			-		66
Acquisition of businesses, net of cash acquired	-			(55		)	(42		)	-		(97		)
Proceeds from sale of businesses	-			-			2			-		2
Capital expenditures	-			-			(201		)	-		(201		)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	(16		)	76			(128		)	-		(68		)
CASH FLOWS FROM FINANCING ACTIVITIES
Share repurchase	(525		)	(100		)	-			-		(625		)
Advances from (to) affiliates	648			376			(1,024		)	-		-
Issuance of shares for employee benefit plans	44			49			-			-		93
Issuance of debt	-			332			1			-		333
Repayment of debt	-			(416		)	(11		)	-		(427		)
Cash dividends to shareholders	(104		)	(49		)	-			-		(153		)
Purchase of shares from noncontrolling interests	-			-			-			-		-
Dividends paid to noncontrolling interests	-			-			(17		)	-		(17		)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	63			192			(1,051		)	-		(796		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	-			-			15			-		15
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1			79			(62		)	-		18
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	-			(21		)	293			-		272
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	1		$	58		$	231		$	-	$	290

Condensed Consolidating Statement of Cash Flows

	NineMonthsEndedSeptember30,2011
						Other
	Parent		Subsidiary			Non-Guarantor			Consolidating
(millions)	Guarantor		Issuer			Subsidiaries			Adjustments		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	-	$	(137	)	$	924		$	-	$	787
CASH FLOWS FROM INVESTING ACTIVITIES
Sales of long-term investments	-		52			51			-		103
Purchase of long-term investments	-		(17		)	(11		)	-		(28		)
Net sales of short-term investments - non-fiduciary			329			(153		)			176
Acquisition of businesses, net of cash acquired	-		(10		)	(92		)	-		(102		)
Proceeds from sale of businesses	-		5			4			-		9
Capital expenditures	-		-			(151		)	-		(151		)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	-		359			(352		)	-		7
CASH FLOWS FROM FINANCING ACTIVITIES
Share repurchase	-		(828		)	-			-		(828		)
Advances from (to) affiliates	-		487			(487		)	-		-
Issuance of shares for employee benefit plans	-		165			-			-		165
Issuance of debt	-		1,190			382			-		1,572
Repayment of debt	-		(1,126		)	(397		)	-		(1,523		)
Cash dividends to shareholders	-		(150		)	-			-		(150		)
Purchase of shares from noncontrolling interests	-		-			(24		)	-		(24		)
Dividends paid to noncontrolling interests	-		-			(21		)	-		(21		)
CASH USED FOR FINANCING ACTIVITIES	-		(262		)	(547		)	-		(809		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	-		-			(36		)	-		(36		)
NET DECREASE IN CASH AND CASH EQUIVALENTS	-		(40		)	(11		)	-		(51		)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	-		14			332			-		346
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	-	$	(26	)	$	321		$	-	$	295