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Guarantee of Registered Securities
3 Months Ended
Mar. 31, 2015
Guarantee of Registered Securities [Abstract]  
Guarantee of Registered Securities
Guarantee of Registered Securities
 
As described in Note 14, in connection with the Redomestication, 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 3.50% Notes due September 2015, the 3.125% Notes due May 2016, the 5.00% Notes due September 2020, the 8.205% Notes due January 2027 and the 6.25% Notes due September 2040. All guarantees of Aon plc are full and unconditional. There are no other subsidiaries of Aon plc that are guarantors of the debt.

Aon Corporation entered into an agreement pursuant to which it agreed to guarantee the obligations of Aon plc arising under the 4.250% Notes due 2042 exchanged for Aon Corporation's outstanding 8.205% Notes due January 2027. Those Notes are subject to Rule 3-10 of Regulation S-X. Aon Corporation also agreed to guarantee the obligations of Aon plc arising under the 4.45% Notes due 2043, the 4.00% Notes due November 2023, the 2.875% Notes due May 2026, the 3.50% Notes due June 2024, and the 4.60% Notes due June 2044. In each case, the guarantee of Aon Corporation is full and unconditional. There are no subsidiaries of Aon plc, other than Aon Corporation, that are guarantors of the 4.250% Notes due 2042, the 4.45% Notes due 2043, the 4.00% Notes due 2023, the 2.875% Notes due 2026, the 3.50% Notes due 2024 or the 4.60% Notes due 2044.
 
The following tables set forth condensed consolidating statements of income for the three months ended March 31, 2015 and 2014, condensed consolidating statements of comprehensive income for the three months ended March 31, 2015 and 2014, condensed consolidating statements of financial position as of March 31, 2015 and December 31, 2014, and condensed consolidating statements of cash flows for the three months ended March 31, 2015 and 2014 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.

In January 2015, Aon plc transferred its ownership of all of its directly held subsidiaries to Aon Global Holdings Limited, an intermediate holding company. The financial results of Aon Global Holdings Limited are included in the Other Non-Guarantor Subsidiaries column of the Condensed Consolidating Financial Statements. The Company has reflected the transfer of Aon Corporation from Aon plc to Aon Global Holdings Limited below for all periods presented.

Certain amounts in prior year's condensed consolidating statements of income have been reclassified and adjusted to conform to the 2015 presentation. In prior periods, other income (expense) from intercompany transactions were recognized in Compensation and benefits and Other general expenses. These amounts are now included in Intercompany other income (expense) in the Condensed Consolidating Statements of Income. The Company believes this provides greater clarity into the income generated from operations and intercompany transactions.

Condensed Consolidating Statement of Income
 
 
Three months ended March 31, 2015
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Commissions, fees and other
 
$
—

 
$
—

 
$
2,842

 
$
—

 
$
2,842

Fiduciary investment income
 
—

 
—

 
5

 
—

 
5

Total revenue
 
—

 
—

 
2,847

 
—

 
2,847

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
52

 
11

 
1,620

 
—

 
1,683

Other general expenses
 
13

 
2

 
708

 
—

 
723

Total operating expenses
 
65

 
13

 
2,328

 
—

 
2,406

Operating (loss) income
 
(65
)
 
(13
)
 
519

 
—

 
441

Interest income
 
(5
)
 
3

 
5

 
—

 
3

Interest expense
 
(25
)
 
(34
)
 
(6
)
 
—

 
(65
)
Intercompany interest income (expense)
 
119

 
(105
)
 
(14
)
 
—

 
—

Intercompany other (expense) income
 
(50
)
 
(8
)
 
58

 
—

 
—

Other income
 
2

 
8

 
32

 
—

 
42

(Loss) income before taxes
 
(24
)
 
(149
)
 
594

 
—

 
421

Income tax (benefit) expense
 
(5
)
 
(50
)
 
135

 
—

 
80

(Loss) income before equity in earnings of subsidiaries
 
(19
)
 
(99
)
 
459

 
—

 
341

Equity in earnings of subsidiaries, net of tax
 
347

 
403

 
304

 
(1,054
)
 
—

Net income
 
328

 
304

 
763

 
(1,054
)
 
341

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
13

 
—

 
13

Net income attributable to Aon shareholders
 
$
328

 
$
304

 
$
750

 
$
(1,054
)
 
$
328



Condensed Consolidating Statement of Income 
 
 
Three months ended March 31, 2014
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Commissions, fees and other
 
$
1

 
$
—

 
$
2,940

 
$
—

 
$
2,941

Fiduciary investment income
 
—

 
—

 
6

 
—

 
6

Total revenue
 
1

 
—

 
2,946

 
—

 
2,947

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
66

 
7

 
1,678

 
—

 
1,751

Other general expenses
 
4

 
3

 
720

 
—

 
727

Total operating expenses
 
70

 
10

 
2,398

 
—

 
2,478

Operating (loss) income
 
(69
)
 
(10
)
 
548

 
—

 
469

Interest income
 
(2
)
 
—

 
4

 
—

 
2

Interest expense
 
(9
)
 
(31
)
 
(18
)
 
—

 
(58
)
Intercompany interest income (expense)
 
111

 
(74
)
 
(37
)
 
—

 
—

Intercompany other (expense) income
 
(19
)
 
(15
)
 
34

 
—

 
—

Other income
 
—

 
—

 
1

 
—

 
1

Income (loss) before taxes
 
12

 
(130
)
 
532

 
—

 
414

Income tax expense (benefit)
 
3

 
(50
)
 
125

 
—

 
78

Income (loss) before equity in earnings of subsidiaries
 
9

 
(80
)
 
407

 
—

 
336

Equity in earnings of subsidiaries, net of tax
 
316

 
333

 
253

 
(902
)
 
—

Net income
 
325

 
253

 
660

 
(902
)
 
336

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
11

 
—

 
11

Net income attributable to Aon shareholders
 
$
325

 
$
253

 
$
649

 
$
(902
)
 
$
325




Condensed Consolidating Statement of Comprehensive Income
 
 
Three months ended March 31, 2015
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income
 
$
328

 
$
304

 
$
763

 
$
(1,054
)
 
$
341

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
13

 
—

 
13

Net income attributable to Aon shareholders
 
$
328

 
$
304

 
$
750

 
$
(1,054
)
 
$
328

Other comprehensive (loss) income, net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of investments
 
—

 
—

 
(1
)
 
—

 
(1
)
Change in fair value of derivatives
 
—

 
(1
)
 
7

 
—

 
6

Foreign currency translation adjustments
 
—

 
(23
)
 
(299
)
 
—

 
(322
)
Post-retirement benefit obligation
 
—

 
8

 
15

 
—

 
23

Total other comprehensive loss
 
—

 
(16
)
 
(278
)
 
—

 
(294
)
Equity in other comprehensive loss of subsidiaries, net of tax
 
(293
)
 
(267
)
 
(283
)
 
843

 
—

Less: Other comprehensive income attributable to noncontrolling interests
 
—

 
—

 
(1
)
 
—

 
(1
)
Total other comprehensive loss attributable to Aon shareholders
 
(293
)
 
(283
)
 
(560
)
 
843

 
(293
)
Comprehensive income attributable to Aon shareholders
 
$
35

 
$
21

 
$
190

 
$
(211
)
 
$
35

 

Condensed Consolidating Statement of Comprehensive Income
 
 
Three months ended March 31, 2014
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income
 
$
325

 
$
253

 
$
660

 
$
(902
)
 
$
336

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
11

 
—

 
11

Net income attributable to Aon shareholders
 
$
325

 
$
253

 
$
649

 
$
(902
)
 
$
325

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of investments
 
—

 
—

 
1

 
—

 
1

Change in fair value of derivatives
 
—

 
1

 
8

 
—

 
9

Foreign currency translation adjustments
 
—

 
(17
)
 
33

 
—

 
16

Post-retirement benefit obligation
 
—

 
6

 
20

 
—

 
26

Total other comprehensive (loss) income
 
—

 
(10
)
 
62

 
—

 
52

Equity in other comprehensive income of subsidiaries, net of tax
 
54

 
69

 
59

 
(182
)
 
—

Less: Other comprehensive income attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive income attributable to Aon shareholders
 
54

 
59

 
123

 
(182
)
 
54

Comprehensive income attributable to Aon Shareholders
 
$
379

 
$
312

 
$
772

 
$
(1,084
)
 
$
379




Condensed Consolidating Statement of Financial Position 
 
 
As of March 31, 2015
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
ASSETS
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
2,230

 
$
650

 
$
(2,502
)
 
$
378

Short-term investments
 
—

 
166

 
177

 
—

 
343

Receivables, net
 
—

 
—

 
2,672

 
—

 
2,672

Fiduciary assets
 
—

 
—

 
10,894

 
—

 
10,894

Intercompany receivables
 
125

 
3,581

 
9,681

 
(13,387
)
 
—

Other current assets
 
2

 
207

 
536

 
(33
)
 
712

Total Current Assets
 
127

 
6,184

 
24,610

 
(15,922
)
 
14,999

Goodwill
 
—

 
—

 
8,548

 
—

 
8,548

Intangible assets, net
 
—

 
—

 
2,410

 
—

 
2,410

Fixed assets, net
 
—

 
—

 
754

 
—

 
754

Intercompany receivables
 
7,374

 
577

 
121

 
(8,072
)
 
—

Other non-current assets
 
181

 
701

 
1,589

 
(793
)
 
1,678

Investment in subsidiary
 
4,121

 
15,391

 
1,868

 
(21,380
)
 
—

TOTAL ASSETS
 
$
11,803

 
$
22,853

 
$
39,900

 
$
(46,167
)
 
$
28,389

 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Fiduciary liabilities
 
$
—

 
$
—

 
$
10,894

 
$
—

 
$
10,894

Short-term debt and current portion of long-term debt
 
109

 
846

 
11

 
—

 
966

Accounts payable and accrued liabilities
 
2,597

 
31

 
1,265

 
(2,502
)
 
1,391

Intercompany payables
 
246

 
9,382

 
3,759

 
(13,387
)
 
—

Other current liabilities
 
—

 
49

 
849

 
(33
)
 
865

Total Current Liabilities
 
2,952

 
10,308

 
16,778

 
(15,922
)
 
14,116

Long-term debt
 
2,480

 
1,917

 
313

 
—

 
4,710

Pension, other post-retirement and other post-employment liabilities
 
—

 
1,366

 
635

 
—

 
2,001

Intercompany payables
 
—

 
7,287

 
785

 
(8,072
)
 
—

Other non-current liabilities
 
6

 
107

 
1,811

 
(793
)
 
1,131

TOTAL LIABILITIES
 
5,438

 
20,985

 
20,322

 
(24,787
)
 
21,958

 
 
 
 
 
 
 
 
 
 
 
TOTAL AON SHAREHOLDERS' EQUITY
 
6,365

 
1,868

 
19,512

 
(21,380
)
 
6,365

Noncontrolling interests
 
—

 
—

 
66

 
—

 
66

TOTAL EQUITY
 
6,365

 
1,868

 
19,578

 
(21,380
)
 
6,431

 
 
 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
11,803

 
$
22,853

 
$
39,900

 
$
(46,167
)
 
$
28,389


Condensed Consolidating Statement of Financial Position
 
 
As of December 31, 2014
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
ASSETS
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
2,727

 
$
1,361

 
$
(3,714
)
 
$
374

Short-term investments
 
—

 
165

 
229

 
—

 
394

Receivables, net
 
—

 
—

 
2,815

 
—

 
2,815

Fiduciary assets
 
—

 
—

 
11,638

 
—

 
11,638

Intercompany receivables
 
455

 
2,814

 
9,156

 
(12,425
)
 
—

Other current assets
 
2

 
226

 
407

 
(33
)
 
602

Total Current Assets
 
457

 
5,932

 
25,606

 
(16,172
)
 
15,823

Goodwill
 
—

 
—

 
8,860

 
—

 
8,860

Intangible assets, net
 
—

 
—

 
2,520

 
—

 
2,520

Fixed assets, net
 
—

 
—

 
765

 
—

 
765

Intercompany receivables
 
7,399

 
600

 
111

 
(8,110
)
 
—

Other non-current assets
 
179

 
697

 
1,718

 
(790
)
 
1,804

Investment in subsidiary
 
4,962

 
15,200

 
1,880

 
(22,042
)
 
—

TOTAL ASSETS
 
$
12,997

 
$
22,429

 
$
41,460

 
$
(47,114
)
 
$
29,772

 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Fiduciary liabilities
 
$
—

 
$
—

 
$
11,638

 
$
—

 
$
11,638

Short-term debt and current portion of long-term debt
 
—

 
767

 
16

 
—

 
783

Accounts payable and accrued liabilities
 
3,755

 
58

 
1,706

 
(3,714
)
 
1,805

Intercompany payables
 
122

 
8,960

 
3,343

 
(12,425
)
 
—

Other current liabilities
 
—

 
49

 
772

 
(33
)
 
788

Total Current Liabilities
 
3,877

 
9,834

 
17,475

 
(16,172
)
 
15,014

Long-term debt
 
2,544

 
1,917

 
338

 
—

 
4,799

Pension, other post-retirement and other post-employment liabilities
 
—

 
1,396

 
745

 
—

 
2,141

Intercompany payables
 
—

 
7,277

 
833

 
(8,110
)
 
—

Other non-current liabilities
 
5

 
125

 
1,847

 
(790
)
 
1,187

TOTAL LIABILITIES
 
6,426

 
20,549

 
21,238

 
(25,072
)
 
23,141

 
 
 
 
 
 
 
 
 
 
 
TOTAL AON SHAREHOLDERS' EQUITY
 
6,571

 
1,880

 
20,162

 
(22,042
)
 
6,571

Noncontrolling interests
 
—

 
—

 
60

 
—

 
60

TOTAL EQUITY
 
6,571

 
1,880

 
20,222

 
(22,042
)
 
6,631

 
 
 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
12,997

 
$
22,429

 
$
41,460

 
$
(47,114
)
 
$
29,772


Condensed Consolidating Statement of Cash Flows
 
 
Three months ended March 31, 2015
 
 
Aon
 
Aon
 
Other
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
 
 

 
 

 
 

 
 

 
 

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
 
$
2

 
$
(188
)
 
$
322

 
$
—

 
$
136

 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Sales of long-term investments
 
—

 
—

 
3

 
—

 
3

Purchase of long-term investments
 
—

 
(1
)
 
—

 
—

 
(1
)
Net sales of short-term investments - non-fiduciary
 
—

 
(1
)
 
43

 
—

 
42

Acquisition of businesses, net of cash acquired
 
—

 
—

 
(21
)
 
—

 
(21
)
Proceeds from sale of businesses
 
—

 
—

 
41

 
—

 
41

Capital expenditures
 
—

 
—

 
(62
)
 
—

 
(62
)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES
 
—

 
(2
)
 
4

 
—

 
2

 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(250
)
 
—

 
—

 
—

 
(250
)
Advances from (to) affiliates
 
157

 
(385
)
 
(984
)
 
1,212

 
—

Issuance of shares for employee benefit plans
 
48

 
—

 
—

 
—

 
48

Issuance of debt
 
114

 
756

 
—

 
—

 
870

Repayment of debt
 
—

 
(678
)
 
(8
)
 
—

 
(686
)
Cash dividends to shareholders
 
(71
)
 
—

 
—

 
—

 
(71
)
Purchase of shares from noncontrolling interests
 
—

 
—

 
(5
)
 
—

 
(5
)
Dividends paid to noncontrolling interests
 
—

 
—

 
(1
)
 
—

 
(1
)
Proceeds from sale-leaseback
 
—

 
—

 
—

 
—

 
—

CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES
 
(2
)
 
(307
)
 
(998
)
 
1,212

 
(95
)
 
 
 
 
 
 
 
 
 
 
 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
—

 
—

 
(39
)
 
—

 
(39
)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
 
—

 
(497
)
 
(711
)
 
1,212

 
4

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
 
—

 
2,727

 
1,361

 
(3,714
)
 
374

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
—

 
$
2,230

 
$
650

 
$
(2,502
)
 
$
378


Condensed Consolidating Statement of Cash Flows
 
 
Three months ended March 31, 2014
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
 
 

 
 

 
 

 
 

 
 

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
 
$
89

 
$
(123
)
 
$
23

 
$
—

 
$
(11
)
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Sales of long-term investments
 
—

 
37

 
5

 
—

 
42

Purchase of long-term investments
 
—

 
(10
)
 
—

 
—

 
(10
)
Net sales of short-term investments - non-fiduciary
 
—

 
62

 
121

 
—

 
183

Acquisition of businesses, net of cash acquired
 
—

 
—

 
(5
)
 
—

 
(5
)
Proceeds from sale of businesses
 
—

 
—

 
1

 
—

 
1

Capital expenditures
 
—

 
—

 
(55
)
 
—

 
(55
)
CASH PROVIDED BY INVESTING ACTIVITIES
 
—

 
89

 
67

 
—

 
156

 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(600
)
 
—

 
—

 
—

 
(600
)
Advances from (to) affiliates
 
313

 
(206
)
 
65

 
(172
)
 
—

Issuance of shares for employee benefit plans
 
26

 
—

 
—

 
—

 
26

Issuance of debt
 
293

 
902

 
—

 
—

 
1,195

Repayment of debt
 
(68
)
 
(755
)
 
(6
)
 
—

 
(829
)
Cash dividends to shareholders
 
(53
)
 
—

 
—

 
—

 
(53
)
Purchase of shares from noncontrolling interests
 
—

 
—

 
1

 
—

 
1

CASH (USED FOR) PROVIDED BY
FINANCING ACTIVITIES
 
(89
)
 
(59
)
 
60

 
(172
)
 
(260
)
 
 
 
 
 
 
 
 
 
 
 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
—

 
—

 
(24
)
 
—

 
(24
)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
 
—

 
(93
)
 
126

 
(172
)
 
(139
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
 
—

 
247

 
1,246

 
(1,016
)
 
477

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
—

 
$
154

 
$
1,372

 
$
(1,188
)
 
$
338