Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has two reportable segments: Risk Solutions and HR Solutions. Unallocated income and expenses, when combined with the reportable segments and after the elimination of intersegment revenues and expenses, equal the amounts in the Consolidated Financial Statements. The accounting policies of the reportable segments are the same as those described in Note 2 “Summary of Significant Accounting Principles and Practices.”

Reportable operating segments have been determined using a management approach, which is consistent with the basis and manner in which Aon’s chief operating decision maker (“CODM”) uses financial information for the purposes of allocating resources and evaluating performance. The CODM assesses performance based on a number of factors including revenue growth, expense discipline, return on invested capital, and other factors. The Company does not present net assets by reportable segment as this information is not reviewed by the CODM.

Risk Solutions acts as an advisor and insurance and reinsurance broker, helping clients manage their risks, via consultation, as well as negotiation and placement of insurance risk with insurance carriers through Aon’s global distribution network.

HR Solutions partners with organizations to solve their most complex benefits, talent and related financial challenges, and improve business performance by designing, implementing, communicating, and administering a wide range of human capital, retirement, investment management, health care, compensation, and talent management strategies.

Aon’s total revenue is as follows (in millions):

Years ended December 31	2016			2015			2014
Risk Solutions	$	7,485		$	7,426		$	7,834
HR Solutions	4,183			4,303			4,264
Intersegment eliminations	(41		)	(47		)	(53		)
Total revenue	$	11,627		$	11,682		$	12,045

Commissions, fees and other revenues by product are as follows (in millions):

Years ended December 31	2016			2015			2014
Retail brokerage	$	6,096		$	6,044		$	6,334
Reinsurance brokerage	1,367			1,361			1,474
Total Risk Solutions Segment	7,463			7,405			7,808
Consulting services	1,662			1,686			1,700
Outsourcing	2,557			2,658			2,607
Intrasegment	(36		)	(41		)	(43		)
Total HR Solutions Segment	4,183			4,303			4,264
Intersegment	(41		)	(47		)	(53		)
Total commissions, fees and other revenue	$	11,605		$	11,661		$	12,019

Fiduciary investment income by segment is as follows (in millions):

Years ended December 31	2016		2015		2014
Risk Solutions	$	22	$	21	$	26
HR Solutions	—		—		—
Total fiduciary investment income	$	22	$	21	$	26

A reconciliation of segment operating income before tax to income before income taxes is as follows (in millions):

Years ended December 31	2016			2015			2014
Risk Solutions	$	1,587		$	1,506		$	1,648
HR Solutions	557			536			485
Segment income before income taxes	2,144			2,042			2,133
Unallocated expenses	(238		)	(194		)	(167		)
Interest income	9			14			10
Interest expense	(282		)	(273		)	(255		)
Other income	36			100			44
Income before income taxes	$	1,669		$	1,689		$	1,765

Unallocated expenses include administrative or other costs not attributable to the operating segments, such as corporate governance costs. Interest income represents income earned on Cash and cash equivalents and Short-term investments. Interest expense represents the cost of debt obligations.

Other income consists of equity earnings, realized gains or losses on the sale of investments, gains or losses on the disposal of businesses, gains or losses on derivatives, and gains or losses on foreign currency remeasurement.

Revenues are generally attributed to geographic areas based on the location of the resources producing the revenues. Intercompany revenues and expenses are eliminated in consolidated results.

Consolidated Revenue by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions):

Years ended December 31	Total	United States		Americas other than U.S.		United Kingdom		Europe, Middle East, & Africa		Asia Pacific
2016	11,627	$	6,078	$	995	$	1,378	$	1,760	$	1,416
2015	11,682	6,063		1,053		1,527		1,909		1,130
2014	12,045	5,824		1,176		1,623		2,189		1,233

Consolidated Non-current assets by geographic area are as follows (in millions):

As of December 31, 2016	Total	United States		Americas other than U.S.		United Kingdom		Europe, Middle East, & Africa		Asia Pacific
Fixed assets, net	765	$	443	$	62	$	65	$	85	$	110
Goodwill, intangible assets and other	12,382	6,947		887		2,091		2,054		403
Total	13,147	7,390		949		2,156		2,139		513

As of December 31, 2015	Total	United States		Americas other than U.S.		United Kingdom		Europe, Middle East, & Africa		Asia Pacific
Fixed assets, net	765	$	432	$	48	$	89	$	89	$	107
Goodwill, intangible assets and other	12,253	6,635		368		2,606		2,181		463
Total	13,018	7,067		416		2,695		2,270		570