Shareholders' Equity

Redomestication

Prior to the Redomestication, the Company accounted for purchases of its outstanding common stock using the treasury share method permitted under U.S. GAAP. Under this method, the Company recorded purchases of its own outstanding common stock as a reduction to Additional paid-in capital based on the cost of the shares acquired. Under U.K. law, when the Company repurchases its outstanding shares, those shares are treated as cancelled. In April 2012, the Company constructively cancelled 60 million shares of treasury stock related to the Redomestication. The impact of the cancellation of all outstanding treasury shares was a decrease in Ordinary shares and Retained earnings of $60 million and $2.4 billion, respectively. The balance of Treasury stock at cost of $2.5 billion was also eliminated as part of the cancellation. Additionally, effective upon the completion of the Redomestication, the par value of Aon's outstanding equity shares decreased from $1.00 to $0.01. The impact of this change was a decrease in Ordinary shares of $323 million, and an increase in Additional paid-in capital of $323 million.

As a U.K. incorporated company, Aon plc must have "distributable reserves" to make share repurchases or pay dividends to shareholders. Distributable reserves may be created through the earnings of the U.K. parent company and, amongst other methods, through a reduction in share capital approved by the English Companies Court. Distributable reserves are not linked to a U.S. GAAP reported amount. On April 4, 2012, the Company received approval from the English Companies Court to reduce its share premium and in connection with that approval, recognized distributable reserves in the amount of $8.0 billion. As of December 31, 2013 and 2012, the Company had distributable reserves of $5.9 billion and $7.0 billion, respectively.

Ordinary Shares

In January 2010, the Company's Board of Directors authorized a share repurchase program under which up to $2 billion of common stock may be repurchased ("2010 Stock Repurchase Plan"). Shares could be repurchased through the open market or in privately negotiated transactions, including structured repurchase programs, from time to time, based on prevailing market conditions, and were to be funded from available capital. Any repurchased shares were to be available for employee stock plans and for other corporate purposes.

The 2010 Stock Repurchase Program, which related to common stock of Aon Corporation and preceded the Redomestication, did not extend to shares of Aon plc. In April 2012, the Company's Board of Directors therefore authorized a share repurchase program under which up to $5.0 billion of Class A Ordinary Shares may be repurchased ("2012 Share Repurchase Program"). Under this program, shares may be repurchased through the open market or in privately negotiated transactions, from time to time, based on prevailing market conditions, and will be funded from available capital.

In 2013, the Company repurchased 16.8 million shares at an average price per share of $65.65 for a total cost of $1.1 billion. During 2012, the Company repurchased 21.6 million shares at an average price per share of $52.16 for a total cost of $1.1 billion under the 2012 Share Repurchase Program and the previously completed 2010 Share Repurchase Program. The remaining authorized amount for share repurchase under the 2012 Share Repurchase Program is $2.9 billion. Since the inception of the 2012 Share Repurchase Program, we repurchased a total of 36.3 million shares for an aggregate cost of $2.1 billion.

Participating Securities

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities, as defined, and therefore, should be included in computing basic and diluted earnings per share using the two class method. Certain of the Company's restricted share awards allow the holder to receive a non-forfeitable dividend equivalent.

Net income, attributable to participating securities were $11 million, $11 million, and $13 million for the years ended December 31, 2013, 2012, and 2011 respectively.

Weighted average shares outstanding are as follows (in millions):



	Year ended December 31,
	2013	2012	2011
Shares for basic earnings per share (1)	311.4	328.5	335.5
Common stock equivalents	4.0	4.1	5.4
Shares for diluted earnings per share	315.4	332.6	340.9


(1)	Includes 3.9 million, 4.7 million and 7.6 million shares of participating securities for the years ended December 31, 2013, 2012, and 2011 respectively.

Certain ordinary share equivalents were not included in the computation of diluted net income per share because their inclusion would have been antidilutive. The number of shares excluded from the calculation was 0.0 million in 2013, 0.2 million in 2012 and 0.1 million in 2011.

Dividends

During 2013, 2012, and 2011, the Company paid dividends on its Class A Ordinary Shares of $212 million, $204 million, and $200 million, respectively. Dividends paid per Class A Ordinary Share were $0.68, $0.62 and $0.60 for the years ended December 31, 2013, 2012, and 2011 respectively.

Accumulated Other Comprehensive Loss

Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions):



	Change in Fair Value of Investments (1)			Change in Fair Value of Derivatives (1)			Foreign Currency Translation Adjustments			Post-Retirement Benefit Obligation (2)			Total
Balance at January 1, 2011	$	—		$	(24	)	$	168		$	(2,061	)	$	(1,917	)
Other comprehensive loss before reclassifications:
Other comprehensive loss before reclassifications	—			(44		)	(47		)	(682		)	(773		)
Tax benefit	—			15			3			225			243
Other comprehensive loss before reclassifications, net	—			(29		)	(44		)	(457		)	(530		)
Amounts reclassified from accumulated other comprehensive loss:
Amounts reclassified from accumulated other comprehensive loss	—			25			—			89			114
Tax benefit	—			(9		)	—			(28		)	(37		)
Amounts reclassified from accumulated other comprehensive loss, net	—			16			—			61			77
Net current period other comprehensive (loss) income	—			(13		)	(44		)	(396		)	(453		)
Balance at December 31, 2011	—			(37		)	124			(2,457		)	(2,370		)
Other comprehensive loss before reclassifications:
Other comprehensive loss before reclassifications	—			(19		)	109			(598		)	(508		)
Tax benefit	—			7			—			164			171
Other comprehensive loss before reclassifications, net	—			(12		)	109			(434		)	(337		)
Amounts reclassified from accumulated other comprehensive loss:
Amounts reclassified from accumulated other comprehensive loss	—			33			—			110			143
Tax benefit	—			(12		)	—			(34		)	(46		)
Amounts reclassified from accumulated other comprehensive loss, net	—			21			—			76			97
Net current period other comprehensive (loss) income	—			9			109			(358		)	(240		)
Balance at December 31, 2012	—			(28		)	233			(2,815		)	(2,610		)
Other comprehensive loss before reclassifications:
Other comprehensive loss before reclassifications	27			(12		)	(65		)	336			286
Tax benefit	(13		)	5			1			(136		)	(143		)
Other comprehensive loss before reclassifications, net	14			(7		)	(64		)	200			143
Amounts reclassified from accumulated other comprehensive loss:
Amounts reclassified from accumulated other comprehensive loss	(20		)	21			—			131			132
Tax benefit	7			(8		)	—			(38		)	(39		)
Amounts reclassified from accumulated other comprehensive loss, net	(13		)	13			—			93			93
Net current period other comprehensive (loss) income	1			6			(64		)	293			236
Balance at December 31, 2013	$	1		$	(22	)	$	169		$	(2,522	)	$	(2,374	)

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(1) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income

(2) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Compensation and benefits