Guarantee of Registered Securities (Tables)

9 Months Ended

Sep. 30, 2018

Guarantee of Registered Securities [Abstract]

Condensed Consolidating Statements of Income

Condensed Consolidating Statement of Income

	Three months ended September 30, 2018
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenue
Total revenue	$	—		$	—		$	2,349		$	—		$	2,349
Expenses
Compensation and benefits	13			3			1,376			—			1,392
Information technology	—			—			125			—			125
Premises	—			—			94			—			94
Depreciation of fixed assets	—			—			40			—			40
Amortization and impairment of intangible assets	—			—			100			—			100
Other general expenses	—			(7		)	343			—			336
Total operating expenses	13			(4		)	2,078			—			2,087
Operating income (loss)	(13		)	4			271			—			262
Interest income	—			15			—			(15		)	—
Interest expense	(52		)	(26		)	(6		)	15			(69		)
Intercompany interest income (expense)	4			(128		)	124			—			—
Intercompany other income (expense)	245			(251		)	6			—			—
Other income (expense)	(5		)	(3		)	7			2			1
Income (loss) from continuing operations before income taxes	179			(389		)	402			2			194
Income tax expense (benefit)	(8		)	(67		)	114			—			39
Net income (loss) from continuing operations	187			(322		)	288			2			155
Net income (loss) from discontinued operations	—			—			(2		)	—			(2		)
Net income (loss) before equity in earnings of subsidiaries	187			(322		)	286			2			153
Equity in earnings of subsidiaries, net of tax	(42		)	(42		)	(364		)	448			—
Net income (loss)	145			(364		)	(78		)	450			153
Less: Net income attributable to noncontrolling interests	—			—			6			—			6
Net income (loss) attributable to Aon shareholders	$	145		$	(364	)	$	(84	)	$	450		$	147

Condensed Consolidating Statement of Income

	Three months ended September 30, 2017
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenue
Total revenue	$	—		$	—		$	2,340		$	—		$	2,340
Expenses
Compensation and benefits	25			18			1,385			—			1,428
Information technology	—			—			109			—			109
Premises	—			—			89			—			89
Depreciation of fixed assets	—			—			40			—			40
Amortization and impairment of intangible assets	—			—			101			—			101
Other general expenses	1			1			315			—			317
Total operating expenses	26			19			2,039			—			2,084
Operating income (loss)	(26		)	(19		)	301			—			256
Interest income	—			18			—			(8		)	10
Interest expense	(53		)	(24		)	(1		)	8			(70		)
Intercompany interest income (expense)	3			(135		)	132			—			—
Intercompany other income (expense)	291			(271		)	(20		)	—			—
Other income (expense)	(2		)	12			(6		)	—			4
Income (loss) from continuing operations before income taxes	213			(419		)	406			—			200
Income tax expense (benefit)	(8		)	(81		)	93			—			4
Net income (loss) from continuing operations	221			(338		)	313			—			196
Net income (loss) from discontinued operations	—			—			(4		)	—			(4		)
Net income (loss) before equity in earnings of subsidiaries	221			(338		)	309			—			192
Equity in earnings of subsidiaries, net of tax	(36		)	122			(216		)	130			—
Net income (loss)	185			(216		)	93			130			192
Less: Net income attributable to noncontrolling interests	—			—			7			—			7
Net income (loss) attributable to Aon shareholders	$	185		$	(216	)	$	86		$	130		$	185

Condensed Consolidating Statement of Income

	Nine months ended September 30, 2018
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenue
Total revenue	$	—		$	—		$	8,000		$	—		$	8,000
Expenses
Compensation and benefits	47			5			4,450			—			4,502
Information technology	—			—			363			—			363
Premises	—			—			283			—			283
Depreciation of fixed assets	—			—			126			—			126
Amortization and impairment of intangible assets	—			—			492			—			492
Other general expenses	3			71			1,115			—			1,189
Total operating expenses	50			76			6,829			—			6,955
Operating income (loss)	(50		)	(76		)	1,171			—			1,045
Interest income	—			44			—			(39		)	5
Interest expense	(149		)	(75		)	(23		)	39			(208		)
Intercompany interest income (expense)	11			(385		)	374			—			—
Intercompany other income (expense)	113			(259		)	146			—			—
Other income (expense)	4			(29		)	21			(13		)	(17		)
Income (loss) from continuing operations before income taxes	(71		)	(780		)	1,689			(13		)	825
Income tax expense (benefit)	(27		)	(144		)	180			—			9
Net income (loss) from continuing operations	(44		)	(636		)	1,509			(13		)	816
Net income (loss) from discontinued operations	—			—			5			—			5
Net income (loss) before equity in earnings of subsidiaries	(44		)	(636		)	1,514			(13		)	821
Equity in earnings of subsidiaries, net of tax	846			868			232			(1,946		)	—
Net income (loss)	802			232			1,746			(1,959		)	821
Less: Net income attributable to noncontrolling interests	—			—			32			—			32
Net income (loss) attributable to Aon shareholders	$	802		$	232		$	1,714		$	(1,959	)	$	789

Condensed Consolidating Statement of Income

	Nine months ended September 30, 2017
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenue
Total revenue	$	—		$	—		$	7,089		$	—		$	7,089
Expenses
Compensation and benefits	85			24			4,254			—			4,363
Information technology	—			—			295			—			295
Premises	—			—			259			—			259
Depreciation of fixed assets	—			—			148			—			148
Amortization and impairment of intangible assets	—			—			604			—			604
Other general expenses	10			(3		)	949			—			956
Total operating expenses	95			21			6,509			—			6,625
Operating income (loss)	(95		)	(21		)	580			—			464
Interest income	—			35			—			(15		)	20
Interest expense	(144		)	(71		)	(11		)	15			(211		)
Intercompany interest income (expense)	10			(407		)	397			—			—
Intercompany other income (expense)	189			(280		)	91			—			—
Other income (expense)	(25		)	15			(2		)	18			6
Income (loss) from continuing operations before income taxes	(65		)	(729		)	1,055			18			279
Income tax expense (benefit)	(30		)	(198		)	89			—			(139		)
Net income (loss) from continuing operations	(35		)	(531		)	966			18			418
Net income (loss) from discontinued operations	—			—			857			—			857
Net income (loss) before equity in earnings of subsidiaries	(35		)	(531		)	1,823			18			1,275
Equity in earnings of subsidiaries, net of tax	1,262			1,028			497			(2,787		)	—
Net income (loss)	1,227			497			2,320			(2,769		)	1,275
Less: Net income attributable to noncontrolling interests	—			—			30			—			30
Net income (loss) attributable to Aon shareholders	$	1,227		$	497		$	2,290		$	(2,769	)	$	1,245

Condensed Consolidating Statements of Comprehensive Income

Condensed Consolidating Statement of Comprehensive Income

	Three months ended September 30, 2018
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income (loss)	$	145		$	(364	)	$	(78	)	$	450		$	153
Less: Net income attributable to noncontrolling interests	—			—			6			—			6
Net income (loss) attributable to Aon shareholders	145			(364		)	(84		)	450			147
Other comprehensive income (loss), net of tax:
Change in fair value of financial instruments	—			(2		)	3			—			1
Foreign currency translation adjustments	—			—			(48		)	(2		)	(50		)
Postretirement benefit obligation	—			12			(74		)	—			(62		)
Total other comprehensive income (loss)	—			10			(119		)	(2		)	(111		)
Equity in other comprehensive income (loss) of subsidiaries, net of tax	(106		)	(134		)	(124		)	364			—
Less: Other comprehensive income (loss) attributable to noncontrolling interests	—			—			(3		)	—			(3		)
Total other comprehensive income (loss) attributable to Aon shareholders	(106		)	(124		)	(240		)	362			(108		)
Comprehensive income (loss) attributable to Aon shareholders	$	39		$	(488	)	$	(324	)	$	812		$	39

Condensed Consolidating Statement of Comprehensive Income

	Three months ended September 30, 2017
(millions)	Aon plc		Aon Corporation			Other Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Net income (loss)	$	185	$	(216	)	$	93	$	130		$	192
Less: Net income attributable to noncontrolling interests	—		—			7		—			7
Net income (loss) attributable to Aon shareholders	185		(216		)	86		130			185
Other comprehensive income (loss), net of tax:
Change in fair value of financial instruments	—		3			8		—			11
Foreign currency translation adjustments	—		—			243		—			243
Postretirement benefit obligation	—		7			11		—			18
Total other comprehensive income (loss)	—		10			262		—			272
Equity in other comprehensive income (loss) of subsidiaries, net of tax	265		245			255		(765		)	—
Less: Other comprehensive income (loss) attributable to noncontrolling interests	—		—			7		—			7
Total other comprehensive income (loss) attributable to Aon shareholders	265		255			510		(765		)	265
Comprehensive income (loss) attributable to Aon shareholders	$	450	$	39		$	596	$	(635	)	$	450

Condensed Consolidating Statement of Comprehensive Income

	Nine months ended September 30, 2018
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income (loss)	$	802		$	232		$	1,746		$	(1,959	)	$	821
Less: Net income attributable to noncontrolling interests	—			—			32			—			32
Net income (loss) attributable to Aon shareholders	802			232			1,714			(1,959		)	789
Other comprehensive income (loss), net of tax:
Change in fair value of financial instruments	—			(3		)	17			—			14
Foreign currency translation adjustments	—			—			(276		)	13			(263		)
Postretirement benefit obligation	—			34			74			—			108
Total other comprehensive income (loss)	—			31			(185		)	13			(141		)
Equity in other comprehensive income (loss) of subsidiaries, net of tax	(148		)	(194		)	(163		)	505			—
Less: Other comprehensive income (loss) attributable to noncontrolling interests	—			—			(6		)	—			(6		)
Total other comprehensive income (loss) attributable to Aon shareholders	(148		)	(163		)	(342		)	518			(135		)
Comprehensive income (loss) attributable to Aon shareholders	$	654		$	69		$	1,372		$	(1,441	)	$	654

Condensed Consolidating Statement of Comprehensive Income

	Nine months ended September 30, 2017
(millions)	Aon plc		Aon Corporation		Other Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Net income (loss)	$	1,227	$	497	$	2,320	$	(2,769	)	$	1,275
Less: Net income attributable to noncontrolling interests	—		—		30		—			30
Net income (loss) attributable to Aon shareholders	1,227		497		2,290		(2,769		)	1,245
Other comprehensive income (loss), net of tax:
Change in fair value of financial instruments	—		3		10		—			13
Foreign currency translation adjustments	—		—		452		(18		)	434
Postretirement benefit obligation	—		23		33		—			56
Total other comprehensive income (loss)	—		26		495		(18		)	503
Equity in other comprehensive income (loss) of subsidiaries, net of tax	518		480		506		(1,504		)	—
Less: Other comprehensive income (loss) attributable to noncontrolling interests	—		—		3		—			3
Total other comprehensive income (loss) attributable to Aon shareholders	518		506		998		(1,522		)	500
Comprehensive income (loss) attributable to Aon shareholders	$	1,745	$	1,003	$	3,288	$	(4,291	)	$	1,745

Condensed Consolidating Statements of Financial Position

Condensed Consolidating Statement of Financial Position

	As of September 30, 2018
(millions)	Aon plc		Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Assets
Current assets
Cash and cash equivalents	$	—	$	1,927		$	400		$	(1,843	)	$	484
Short-term investments	—		47			120			—			167
Receivables, net	—		—			2,656			—			2,656
Fiduciary assets	—		—			9,314			—			9,314
Current intercompany receivables	165		4,175			12,173			(16,513		)	—
Other current assets	—		15			712			—			727
Total current assets	165		6,164			25,375			(18,356		)	13,348
Goodwill	—		—			8,282			—			8,282
Intangible assets, net	—		—			1,260			—			1,260
Fixed assets, net	—		—			594			—			594
Deferred tax assets	99		419			153			(195		)	476
Non-current intercompany receivables	412		260			8,256			(8,928		)	—
Prepaid pension	—		6			1,202			—			1,208
Other non-current assets	1		37			396			—			434
Investment in subsidiary	10,086		18,858			(371		)	(28,573		)	—
Total assets	$	10,763	$	25,744		$	45,147		$	(56,052	)	$	25,602
Liabilities and equity
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	1,516	$	66		$	1,861		$	(1,843	)	$	1,600
Short-term debt and current portion of long-term debt	540		200			1			—			741
Fiduciary liabilities	—		—			9,314			—			9,314
Current intercompany payables	193		14,605			1,715			(16,513		)	—
Other current liabilities	—		64			924			—			988
Total current liabilities	2,249		14,935			13,815			(18,356		)	12,643
Long-term debt	4,249		1,416			—			—			5,665
Deferred tax liabilities	—		—			468			(195		)	273
Pension, other postretirement and postemployment liabilities	—		1,238			365			—			1,603
Non-current intercompany payables	—		8,421			507			(8,928		)	—
Other non-current liabilities	3		105			982			—			1,090
Total liabilities	6,501		26,115			16,137			(27,479		)	21,274
Total Aon shareholders’ equity	4,262		(371		)	28,944			(28,573		)	4,262
Noncontrolling interests	—		—			66			—			66
Total equity	4,262		(371		)	29,010			(28,573		)	4,328
Total liabilities and equity	$	10,763	$	25,744		$	45,147		$	(56,052	)	$	25,602

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
Current intercompany receivables	165		1,046		10,824		(12,035		)	—
Other current assets	1		29		259		—			289
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 assets	99		396		143		(249		)	389
Non-current 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		17,909		19		(26,812		)	—
Total assets	$	9,565	$	22,563	$	44,525	$	(50,565	)	$	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
Current intercompany payables	130		11,149		756		(12,035		)	—
Other current liabilities	16		64		790		—			870
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 postemployment liabilities	—		1,391		398		—			1,789
Non-current intercompany payables	—		8,398		509		(8,907		)	—
Other non-current liabilities	11		91		1,000		—			1,102
Total liabilities	4,982		22,544		17,667		(23,753		)	21,440
Total Aon shareholders’ equity	4,583		19		26,793		(26,812		)	4,583
Noncontrolling interests	—		—		65		—			65
Total equity	4,583		19		26,858		(26,812		)	4,648
Total liabilities and equity	$	9,565	$	22,563	$	44,525	$	(50,565	)	$	26,088

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statement of Cash Flows

	Nine months ended September 30, 2018
(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	$	(143	)	$	479		$	2,258		$	(1,619	)	$	975
Cash provided by operating activities - discontinued operations	—			—			—			—			—
Cash provided by (used for) operating activities	(143		)	479			2,258			(1,619		)	975
Cash flows from investing activities
Proceeds from investments	—			16			14			—			30
Payments for investments	(12		)	(36		)	(29		)	12			(65		)
Net sales (purchases) of short-term investments - non-fiduciary	—			308			48			—			356
Acquisition of businesses, net of cash acquired	—			—			(50		)				(50		)
Sale of businesses, net of cash sold	—			—			(8		)	—			(8		)
Capital expenditures	—			—			(179		)	—			(179		)
Cash provided by (used for) investing activities - continuing operations	(12		)	288			(204		)	12			84
Cash used for investing activities - discontinued operations	—			—			—			—			—
Cash provided by (used for) investing activities	(12		)	288			(204		)	12			84
Cash flows from financing activities
Share repurchase	(1,272		)	—			—			—			(1,272		)
Advances from (to) affiliates	1,292			(1,564		)	(2,054		)	2,326			—
Issuance of shares for employee benefit plans	(139		)	—			—			—			(139		)
Issuance of debt	1,258			2,701			1			—			3,960
Repayment of debt	(700		)	(2,501		)	(297		)	—			(3,498		)
Cash dividends to shareholders	(285		)	—			—			—			(285		)
Noncontrolling interests and other financing activities	—			—			(21		)	—			(21		)
Cash provided by (used for) financing activities - continuing operations	154			(1,364		)	(2,371		)	2,326			(1,255		)
Cash used for financing activities - discontinued operations	—			—			—			—			—
Cash provided by (used for) financing activities	154			(1,364		)	(2,371		)	2,326			(1,255		)
Effect of exchange rates on cash and cash equivalents	—			—			(76		)	—			(76		)
Net increase (decrease) in cash and cash equivalents	(1		)	(597		)	(393		)	719			(272		)
Cash and cash equivalents at beginning of period	1			2,524			793			(2,562		)	756
Cash and cash equivalents at end of period	$	—		$	1,927		$	400		$	(1,843	)	$	484

Condensed Consolidating Statement of Cash Flows

	Nine months ended September 30, 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	$	(135	)	$	999		$	987		$	(1,562	)	$	289
Cash provided by operating activities - discontinued operations	—			—			64			—			64
Cash provided by (used for) operating activities	(135		)	999			1,051			(1,562		)	353
Cash flows from investing activities
Proceeds from investments	—			576			11			(544		)	43
Payments for investments	(16		)	(25		)	(571		)	557			(55		)
Net sales (purchases) of short-term investments - non-fiduciary	—			(1,328		)	(16		)	—			(1,344		)
Acquisition of businesses, net of cash acquired	—			1			(173		)	—			(172		)
Sale of businesses, net of cash sold	—			—			4,194			—			4,194
Capital expenditures	—			—			(125		)	—			(125		)
Cash provided by (used for) investing activities - continuing operations	(16		)	(776		)	3,320			13			2,541
Cash used for investing activities - discontinued operations	—			—			(19		)	—			(19		)
Cash provided by (used for) investing activities	(16		)	(776		)	3,301			13			2,522
Cash flows from financing activities
Share repurchase	(1,888		)	—			—			—			(1,888		)
Advances from (to) affiliates	2,722			1,304			(4,274		)	248			—
Issuance of shares for employee benefit plans	(118		)	—			—			—			(118		)
Issuance of debt	544			1,100			7			—			1,651
Repayment of debt	(835		)	(1,150		)	(13		)	—			(1,998		)
Cash dividends to shareholders	(274		)	—			—			—			(274		)
Noncontrolling interests and other financing activities	—			—			(21		)	—			(21		)
Cash provided by (used for) financing activities - continuing operations	151			1,254			(4,301		)	248			(2,648		)
Cash used for financing activities - discontinued operations	—			—			—			—			—
Cash provided by (used for) financing activities	151			1,254			(4,301		)	248			(2,648		)
Effect of exchange rates on cash and cash equivalents	—			—			91			—			91
Net increase (decrease) in cash and cash equivalents	—			1,477			142			(1,301		)	318
Cash and cash equivalents at beginning of period	—			1,633			660			(1,862		)	431
Cash and cash equivalents at end of period	$	—		$	3,110		$	802		$	(3,163	)	$	749

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