Guarantee of Registered Securities (Tables)

12 Months Ended

Dec. 31, 2017

Condensed Consolidating Statement of Income



	Year Ended December 31, 2017
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenue
Total revenue	$	—		$	—		$	9,998		$	—		$	9,998
Expenses
Compensation and benefits	150			35			5,904			—			6,089
Information technology	—			—			419			—			419
Premises	—			—			348			—			348
Depreciation of fixed assets	—			—			187			—			187
Amortization and impairment of intangible assets	—			—			704			—			704
Other general expenses (income)	12			(6		)	1,266			—			1,272
Total operating expenses	162			29			8,828			—			9,019
Operating income (loss)	(162		)	(29		)	1,170			—			979
Interest income	—			52			4			(29		)	27
Interest expense	(202		)	(94		)	(15		)	29			(282		)
Intercompany interest income (expense)	14			(543		)	529			—			—
Intercompany other income (expense)	247			(411		)	164			—			—
Other income (expense)	(27		)	21			(51		)	18			(39		)
Income (loss) from continuing operations before income taxes	(130		)	(1,004		)	1,801			18			685
Income tax expense (benefit)	(43		)	(110		)	403			—			250
Net income (loss) from continuing operations	(87		)	(894		)	1,398			18			435
Income from discontinued operations, net of tax	—			—			828			—			828
Net income (loss) before equity in earnings of subsidiaries	(87		)	(894		)	2,226			18			1,263
Equity in earnings of subsidiaries, net of tax	1,295			1,054			160			(2,509		)	—
Net income	1,208			160			2,386			(2,491		)	1,263
Less: Net income attributable to noncontrolling interests	—			—			37			—			37
Net income attributable to Aon shareholders	$	1,208		$	160		$	2,349		$	(2,491	)	$	1,226

Condensed Consolidating Statement of Income



	Year Ended December 31, 2016
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenue
Total revenue	$	—		$	—		$	9,409		$	—		$	9,409
Expenses
Compensation and benefits	130			171			5,386			—			5,687
Information technology	—			—			386			—			386
Premises	—			—			343			—			343
Depreciation of fixed assets	—			—			162			—			162
Amortization and impairment of intangible assets	—			—			157			—			157
Other general expenses (income)	—			2			1,034			—			1,036
Total operating expenses	130			173			7,468			—			7,771
Operating income (loss)	(130		)	(173		)	1,941			—			1,638
Interest income	—			16			22			(29		)	9
Interest expense	(196		)	(101		)	(14		)	29			(282		)
Intercompany interest income (expense)	14			(541		)	527			—			—
Intercompany other income (expense)	274			(361		)	87			—			—
Other income (expense)	15			(5		)	44			(18		)	36
Income (loss) from continuing operations before income taxes	(23		)	(1,165		)	2,607			(18		)	1,401
Income tax expense (benefit)	(55		)	(325		)	528			—			148
Net income (loss) from continuing operations	32			(840		)	2,079			(18		)	1,253
Income from discontinued operations, net of tax	—			—			177			—			177
Net income (loss) before equity in earnings of subsidiaries	32			(840		)	2,256			(18		)	1,430
Equity in earnings of subsidiaries, net of tax	1,382			1,219			379			(2,980		)	—
Net income	1,414			379			2,635			(2,998		)	1,430
Less: Net income attributable to noncontrolling interests	—			—			34			—			34
Net income attributable to Aon shareholders	$	1,414		$	379		$	2,601		$	(2,998	)	$	1,396

Condensed Consolidating Statement of Income



	Year Ended December 31, 2015
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustment			Consolidated
Revenue
Total revenue	$	—		$	—		$	9,480		$	—		$	9,480
Expenses
Compensation and benefits	136			32			5,437			—			5,605
Information technology	—			—			389			—			389
Premises	—			—			362			—			362
Depreciation of fixed assets	—			—			164			—			164
Amortization and impairment of intangible assets				—			173			—			173
Other general expenses (income)	8			7			1,185			—			1,200
Total operating expenses	144			39			7,710			—			7,893
Operating income (loss)	(144		)	(39		)	1,770			—			1,587
Interest income	—			14			19			(19		)	14
Interest expense	(140		)	(130		)	(22		)	19			(273		)
Intercompany interest income (expense)	429			(479		)	50			—			—
Intercompany other income (expense)	302			(422		)	120			—			—
Other income (expense)	(1		)	—			101			—			100
Income (loss) from continuing operations before income taxes	446			(1,056		)	2,038			—			1,428
Income tax expense (benefit)	45			(262		)	392			—			175
Net income (loss) from continuing operations	401			(794		)	1,646			—			1,253
Income from discontinued operations, net of tax	—			—			169			—			169
Net income (loss) before equity in earnings of subsidiaries	401			(794		)	1,815			—			1,422
Equity in earnings of subsidiaries, net of tax	984			1,289			495			(2,768		)	—
Net income	1,385			495			2,310			(2,768		)	1,422
Less: Net income attributable to noncontrolling interests	—			—			37			—			37
Net income attributable to Aon shareholders	$	1,385		$	495		$	2,273		$	(2,768	)	$	1,385

Condensed Consolidating Statement of Comprehensive Income



	Year Ended December 31, 2017
(millions)	Aon plc		Aon Corporation			Other Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Net income (loss)	$	1,208	$	160		$	2,386	$	(2,491	)	$	1,263
Less: Net income attributable to noncontrolling interests	—		—			37		—			37
Net income (loss) attributable to Aon shareholders	1,208		160			2,349		(2,491		)	1,226
Other comprehensive income (loss), net of tax:
Change in fair value of financial instruments	—		3			9		—			12
Foreign currency translation adjustments	—		—			408		(18		)	390
Postretirement benefit obligation	—		(101		)	120		—			19
Total other comprehensive income (loss)	—		(98		)	537		(18		)	421
Equity in other comprehensive income (loss) of subsidiaries, net of tax	434		515			417		(1,366		)	—
Less: Other comprehensive loss attributable to noncontrolling interests	—		—			5		—			5
Total other comprehensive income (loss) attributable to Aon shareholders	434		417			949		(1,384		)	416
Comprehensive income (loss) attributable to Aon shareholders	$	1,642	$	577		$	3,298	$	(3,875	)	$	1,642

Condensed Consolidating Statement of Comprehensive Income



	Year Ended December 31, 2016
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income (loss)	$	1,414		$	379		$	2,635		$	(2,998	)	$	1,430
Less: Net income attributable to noncontrolling interests	—			—			34			—			34
Net income (loss) attributable to Aon shareholders	1,414			379			2,601			(2,998		)	1,396
Other comprehensive income (loss), net of tax:
Change in fair value of financial instruments	—			(1		)	(11		)	—			(12		)
Foreign currency translation adjustments	(2		)	21			(532		)	18			(495		)
Postretirement benefit obligation	—			68			(52		)	—			16
Total other comprehensive income (loss)	(2		)	88			(595		)	18			(491		)
Equity in other comprehensive loss of subsidiaries, net of tax	(505		)	(547		)	(459		)	1,511			—
Less: Other comprehensive loss attributable to noncontrolling interests	—			—			(2		)	—			(2		)
Total other comprehensive income (loss) attributable to Aon shareholders	(507		)	(459		)	(1,052		)	1,529			(489		)
Comprehensive income (loss) attributable to Aon shareholders	$	907		$	(80	)	$	1,549		$	(1,469	)	$	907

Condensed Consolidating Statement of Comprehensive Income



	Year Ended December 31, 2015
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income (loss)	$	1,385		$	495		$	2,310		$	(2,768	)	$	1,422
Less: Net income attributable to noncontrolling interests	—			—			37			—			37
Net income (loss) attributable to Aon shareholders	1,385			495			2,273			(2,768		)	1,385
Other comprehensive income (loss), net of tax:
Change in fair value of financial instruments	—			—			(8		)	—			(8		)
Foreign currency translation adjustments	—			(47		)	(395		)	—			(442		)
Postretirement benefit obligation	—			12			143			—			155
Total other comprehensive income (loss)	—			(35		)	(260		)	—			(295		)
Equity in other comprehensive loss of subsidiaries, net of tax	(289		)	(259		)	(294		)	842			—
Less: Other comprehensive loss attributable to noncontrolling interests	—			—			(6		)	—			(6		)
Total other comprehensive income (loss) attributable to Aon shareholders	(289		)	(294		)	(548		)	842			(289		)
Comprehensive income (loss) attributable to Aon shareholders	$	1,096		$	201		$	1,725		$	(1,926	)	$	1,096

Condensed Consolidating Statement of Financial Position



	As of December 31, 2017
(millions)	Aon plc		Aon Corporation		Other Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1	$	2,524	$	793	$	(2,562	)	$	756
Short-term investments	—		355		174		—			529
Receivables, net	—		2		2,476		—			2,478
Fiduciary assets	—		—		9,625		—			9,625
Intercompany receivables	165		1,046		10,824		(12,035		)	—
Other current assets	1		29		259		—			289
Current assets of discontinued operations	—		—		—		—			—
Total Current Assets	167		3,956		24,151		(14,597		)	13,677
Goodwill	—		—		8,358		—			8,358
Intangible assets, net	—		—		1,733		—			1,733
Fixed assets, net	—		—		564		—			564
Deferred tax asset	99		396		143		(249		)	389
Intercompany receivables	414		261		8,232		(8,907		)	—
Prepaid pension	—		6		1,054		—			1,060
Other non-current assets	1		35		271		—			307
Investment in subsidiary	8,884		17,910		20		(26,814		)	—
Non-current assets of discontinued operations	—		—		—		—			—
TOTAL ASSETS	$	9,565	$	22,564	$	44,526	$	(50,567	)	$	26,088

LIABILITIES AND EQUITY
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	574	$	36	$	3,913	$	(2,562	)	$	1,961
Short-term debt and current portion of long-term debt	—		—		299		—			299
Fiduciary liabilities	—		—		9,625		—			9,625
Intercompany payables	130		11,149		756		(12,035		)	—
Other current liabilities	16		64		790		—			870
Current liabilities of discontinued operations	—		—		—		—			—
Total Current Liabilities	720		11,249		15,383		(14,597		)	12,755
Long-term debt	4,251		1,415		1		—			5,667
Deferred tax liabilities	—		—		376		(249		)	127
Pension, other postretirement and other post-employment liabilities	—		1,391		398		—			1,789
Intercompany payables	—		8,398		509		(8,907		)	—
Other non-current liabilities	11		91		1,000		—			1,102
Non-current liabilities of discontinued operations	—		—		—		—			—
TOTAL LIABILITIES	4,982		22,544		17,667		(23,753		)	21,440

TOTAL AON SHAREHOLDERS’ EQUITY	4,583		20		26,794		(26,814		)	4,583
Noncontrolling interests	—		—		65		—			65
TOTAL EQUITY	4,583		20		26,859		(26,814		)	4,648
TOTAL LIABILITIES AND EQUITY	$	9,565	$	22,564	$	44,526	$	(50,567	)	$	26,088

Condensed Consolidating Statement of Financial Position



	As of December 31, 2016
(millions)	Aon plc		Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	—	$	1,633		$	655		$	(1,862	)	$	426
Short-term investments	—		140			150			—			290
Receivables, net	—		3			2,103			—			2,106
Fiduciary assets	—		—			8,959			—			8,959
Intercompany receivables	105		1,880			9,825			(11,810		)	—
Other current assets	—		25			222			—			247
Current assets of discontinued operations	—		—			1,118			—			1,118
Total Current Assets	105		3,681			23,032			(13,672		)	13,146
Goodwill	—		—			7,410			—			7,410
Intangible assets, net	—		—			1,890			—			1,890
Fixed assets, net	—		—			550			—			550
Deferred tax asset	134		726			171			(706		)	325
Intercompany receivables	366		261			8,711			(9,338		)	—
Prepaid pension	—		5			853			—			858
Other non-current assets	2		119			239			—			360
Investment in subsidiary	10,107		17,131			(356		)	(26,882		)	—
Non-current assets of discontinued operations	—		—			2,076			—			2,076
TOTAL ASSETS	$	10,714	$	21,923		$	44,576		$	(50,598	)	$	26,615

LIABILITIES AND EQUITY
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	585	$	44		$	2,837		$	(1,862	)	$	1,604
Short-term debt and current portion of long-term debt	279		50			7			—			336
Fiduciary liabilities	—		—			8,959			—			8,959
Intercompany payables	142		10,399			1,269			(11,810		)	—
Other current liabilities	—		63			593			—			656
Current liabilities of discontinued operations	—		—			940			—			940
Total Current Liabilities	1,006		10,556			14,605			(13,672		)	12,495
Long-term debt	4,177		1,413			279			—			5,869
Deferred tax liabilities	—		—			759			(658		)	101
Pension, other postretirement and other post-employment liabilities	—		1,356			404			—			1,760
Intercompany payables	—		8,877			461			(9,338		)	—
Other non-current liabilities	8		77			634			—			719
Non-current liabilities of discontinued operations	—		—			139			—			139
TOTAL LIABILITIES	5,191		22,279			17,281			(23,668		)	21,083

TOTAL AON SHAREHOLDERS’ EQUITY	5,523		(356		)	27,238			(26,930		)	5,475
Noncontrolling interests	—		—			57			—			57
TOTAL EQUITY	5,523		(356		)	27,295			(26,930		)	5,532
TOTAL LIABILITIES AND EQUITY	$	10,714	$	21,923		$	44,576		$	(50,598	)	$	26,615

Condensed Consolidating Statement of Cash Flows



	Year Ended December 31, 2017
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Cash provided by (used for) operating activities - continuing operations	$	2,787		$	503		$	2,010		$	(4,631	)	$	669
Cash provided by operating activities - discontinued operations	—			—			65			—			65
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	2,787			503			2,075			(4,631		)	734

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investments	224			587			582			(1,325		)	68
Payments for investments	(261		)	(29		)	(576		)	802			(64		)
Net purchases (sales) of short-term investments - non-fiduciary	—			(215		)	(17		)	—			(232		)
Acquisition of businesses, net of cash acquired	—			—			(1,029		)	—			(1,029		)
Sale of businesses, net of cash sold	—			—			4,246			—			4,246
Capital expenditures	—			—			(183		)	—			(183		)
Cash provided by (used for) investing activities - continuing operations	(37		)	343			3,023			(523		)	2,806
Cash used for investing activities - discontinued operations	—			—			(19		)	—			(19		)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	(37		)	343			3,004			(523		)	2,787

CASH FLOWS FROM FINANCING ACTIVITIES
Share repurchase	(2,399		)	—			—			—			(2,399		)
Advances from (to) affiliates	426			95			(4,975		)	4,454			—
Issuance of shares for employee benefit plans	(121		)	—			—			—			(121		)
Issuance of debt	544			1,100			10			—			1,654
Repayment of debt	(835		)	(1,150		)	(14		)	—			(1,999		)
Cash dividends to shareholders	(364		)	—			—			—			(364		)
Noncontrolling interests and other financing activities				—			(36		)	—			(36		)
Cash provided by (used for) financing activities - continuing operations	(2,749		)	45			(5,015		)	4,454			(3,265		)
Cash used for financing activities - discontinued operations	—			—			—			—			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(2,749		)	45			(5,015		)	4,454			(3,265		)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			69			—			69
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1			891			133			(700		)	325
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR ⁽¹⁾	—			1,633			660			(1,862		)	431
CASH AND CASH EQUIVALENTS AT END OF PERIOD⁽²⁾	$	1		$	2,524		$	793		$	(2,562	)	$	756


(1)	Includes $5 million of discontinued operations at December 31, 2016.


(2)	Includes $0 million of discontinued operations at December 31, 2017

Condensed Consolidating Statement of Cash Flows



	Year Ended December 31, 2016
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Cash provided by (used for) operating activities - continuing operations	$	2,705		$	(536	)	$	2,768		$	(3,108	)	$	1,829
Cash provided by operating activities - discontinued operations	—			—			497			—			497
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	2,705			(536		)	3,265			(3,108		)	2,326

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investments	—			316			15			(288		)	43
Payments for investments	—			(35		)	(29		)	—			(64		)
Net purchases (sales) of short-term investments - non-fiduciary	—			70			(9		)	—			61
Acquisition of businesses, net of cash acquired	—			(335		)	(608		)	64			(879		)
Sale of businesses, net of cash sold	—			—			171			(64		)	107
Capital expenditures	—			—			(156		)	—			(156		)
Cash provided by (used for) investing activities - continuing operations	—			16			(616		)	(288		)	(888		)
Cash used for investing activities - discontinued operations	—			—			(66		)	—			(66		)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			16			(682		)	(288		)	(954		)

CASH FLOWS FROM FINANCING ACTIVITIES
Share repurchase	(1,257		)	—			—			—			(1,257		)
Advances from (to) affiliates	(2,008		)	570			(3,037		)	4,475			—
Issuance of shares for employee benefit plans	(129		)	—			—			—			(129		)
Issuance of debt	1,879			1,588			—			—			3,467
Repayment of debt	(845		)	(2,088		)	(12		)	—			(2,945		)
Cash dividends to shareholders	(345		)	—			—			—			(345		)
Noncontrolling interests and other financing activities	—			—			(77		)	—			(77		)
Cash provided by (used for) financing activities - continuing operations	(2,705		)	70			(3,126		)	4,475			(1,286		)
Cash used for financing activities - discontinued operations	—			—			—			—			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(2,705		)	70			(3,126		)	4,475			(1,286		)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			(39		)	—			(39		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			(450		)	(582		)	1,079			47
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR ⁽¹⁾	—			2,083			1,242			(2,941		)	384
CASH AND CASH EQUIVALENTS AT END OF PERIOD⁽²⁾	$	—		$	1,633		$	660		$	(1,862	)	$	431


(1)	Includes $2 million of discontinued operations at December 31, 2015.


(2)	Includes $5 million of discontinued operations at December 31, 2016

Condensed Consolidating Statement of Cash Flows



	Year Ended December 31, 2015
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Cash provided by (used for) operating activities - continuing operations	$	695		$	464		$	2,016		$	(1,673	)	$	1,502
Cash provided by operating activities - discontinued operations	—			—			507			—			507
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	695			464			2,523			(1,673		)	2,009

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investments	—			27			193			—			220
Payments for investments	(13		)	(47		)	(219		)	13			(266		)
Net purchases (sales) of short-term investments - non-fiduciary	—			(42		)	51			—			9
Acquisition of businesses, net of cash acquired	—			—			(16		)	—			(16		)
Sale of businesses, net of cash sold	—			—			205			—			205
Capital expenditures	—			—			(200		)	—			(200		)
Cash provided by (used for) investing activities - continuing operations	(13		)	(62		)	14			13			(48		)
Cash used for investing activities - discontinued operations	—			—			(90		)	—			(90		)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	(13		)	(62		)	(76		)	13			(138		)

CASH FLOWS FROM FINANCING ACTIVITIES
Share repurchase	(1,550		)	—			—			—			(1,550		)
Advances from (to) affiliates	232			(326		)	(2,339		)	2,433			—
Issuance of shares for employee benefit plans	(29		)	—			(1		)	—			(30		)
Issuance of debt	1,318			4,026			7			—			5,351
Repayment of debt	(330		)	(4,746		)	(22		)	—			(5,098		)
Cash dividends to shareholders	(323		)	—			—			—			(323		)
Noncontrolling interests and other financing activities	—			—			(39		)	—			(39		)
Cash provided by (used for) financing activities - continuing operations	(682		)	(1,046		)	(2,394		)	2,433			(1,689		)
Cash used for financing activities - discontinued operations	—			—			—			—			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(682		)	(1,046		)	(2,394		)	2,433			(1,689		)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			(172		)	—			(172		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			(644		)	(119		)	773			10
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR ⁽¹⁾	—			2,727			1,361			(3,714		)	374
CASH AND CASH EQUIVALENTS AT END OF PERIOD⁽²⁾	$	—		$	2,083		$	1,242		$	(2,941	)	$	384


(1)	Includes $4 million of discontinued operations at December 31, 2014.


(2)	Includes $2 million of discontinued operations at December 31, 2015