Guarantee of Registered Securities (Tables)

9 Months Ended

Sep. 30, 2019

Guarantee of Registered Securities [Abstract]

Condensed Consolidating Statements of Income

Condensed Consolidating Statement of Income

	Three Months Ended September 30, 2019
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenue
Total revenue	$	—		$	—		$	2,379		$	—		$	2,379
Expenses
Compensation and benefits	12			2			1,354			—			1,368
Information technology	—			—			120			—			120
Premises	—			4			72			—			76
Depreciation of fixed assets	—			—			44			—			44
Amortization and impairment of intangible assets	—			—			101			—			101
Other general expense (income)	2			1			307			—			310
Total operating expenses	14			7			1,998			—			2,019
Operating income (loss)	(14		)	(7		)	381			—			360
Interest income	—			11			—			(10		)	1
Interest expense	(47		)	(35		)	(6		)	10			(78		)
Intercompany interest income (expense)	4			(116		)	112			—			—
Intercompany other income (expense)	(70		)	(9		)	79			—			—
Other income (expense)	39			(22		)	7			(22		)	2
Income (loss) from continuing operations before income taxes	(88		)	(178		)	573			(22		)	285
Income tax expense (benefit)	(2		)	(35		)	93			—			56
Net income (loss) from continuing operations	(86		)	(143		)	480			(22		)	229
Net income (loss) from discontinued operations	—			—			(1		)	—			(1		)
Net income (loss) before equity in earnings of subsidiaries	(86		)	(143		)	479			(22		)	228
Equity in earnings of subsidiaries	330			107			(36		)	(401		)	—
Net income (loss)	244			(36		)	443			(423		)	228
Less: Net income attributable to noncontrolling interests	—			—			6			—			6
Net income (loss) attributable to Aon shareholders	$	244		$	(36	)	$	437		$	(423	)	$	222

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 expense (income)	—			(1		)	337			—			336
Total operating expenses	13			2			2,072			—			2,087
Operating income (loss)	(13		)	(2		)	277			—			262
Interest income	—			15			—			(15		)	—
Interest expense	(52		)	(26		)	(6		)	15			(69		)
Intercompany interest income (expense)	4			(128		)	124			—			—
Intercompany other income (expense)	245			(245		)	—			—			—
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	(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

	Nine Months Ended September 30, 2019
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenue
Total revenue	$	—		$	—		$	8,128		$	—		$	8,128
Expenses
Compensation and benefits	54			14			4,385			—			4,453
Information technology	—			—			363			—			363
Premises	—			17			231			—			248
Depreciation of fixed assets	—			—			124			—			124
Amortization and impairment of intangible assets	—			—			295			—			295
Other general expense (income)	5			3			992			—			1,000
Total operating expenses	59			34			6,390			—			6,483
Operating income (loss)	(59		)	(34		)	1,738			—			1,645
Interest income	—			29			—			(25		)	4
Interest expense	(138		)	(97		)	(17		)	25			(227		)
Intercompany interest income (expense)	11			(348		)	337			—			—
Intercompany other income (expense)	98			(272		)	174			—			—
Other income (expense)	33			(47		)	39			(17		)	8
Income (loss) from continuing operations before income taxes	(55		)	(769		)	2,271			(17		)	1,430
Income tax expense (benefit)	(7		)	(141		)	386			—			238
Net income (loss) from continuing operations	(48		)	(628		)	1,885			(17		)	1,192
Net income (loss) from discontinued operations	—			—			(1		)	—			(1		)
Net income (loss) before equity in earnings of subsidiaries	(48		)	(628		)	1,884			(17		)	1,191
Equity in earnings of subsidiaries	1,223			1,132			504			(2,859		)	—
Net income (loss)	1,175			504			2,388			(2,876		)	1,191
Less: Net income attributable to noncontrolling interests	—			—			33			—			33
Net income (loss) attributable to Aon shareholders	$	1,175		$	504		$	2,355		$	(2,876	)	$	1,158

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 expense (income)	3			90			1,096			—			1,189
Total operating expenses	50			95			6,810			—			6,955
Operating income (loss)	(50		)	(95		)	1,190			—			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)	99			(240		)	141			—			—
Other income (expense)	18			(29		)	7			(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	846			870			234			(1,950		)	—
Net income (loss)	802			234			1,748			(1,963		)	821
Less: Net income attributable to noncontrolling interests	—			—			32			—			32
Net income (loss) attributable to Aon shareholders	$	802		$	234		$	1,716		$	(1,963	)	$	789

Condensed Consolidating Statements of Comprehensive Income

Condensed Consolidating Statement of Comprehensive Income

	Three Months Ended September 30, 2019
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income (loss)	$	244		$	(36	)	$	443		$	(423	)	$	228
Less: Net income attributable to noncontrolling interests	—			—			6			—			6
Net income (loss) attributable to Aon shareholders	244			(36		)	437			(423		)	222
Other comprehensive income (loss), net of tax:
Change in fair value of financial instruments	—			—			(2		)	—			(2		)
Foreign currency translation adjustments	—			—			(234		)	22			(212		)
Postretirement benefit obligation	—			10			7			—			17
Total other comprehensive income (loss)	—			10			(229		)	22			(197		)
Equity in other comprehensive income (loss) of subsidiaries, net of tax	(215		)	(220		)	(210		)	645			—
Less: Other comprehensive loss attributable to noncontrolling interests	—			—			(4		)	—			(4		)
Total other comprehensive income (loss) attributable to Aon shareholders	(215		)	(210		)	(435		)	667			(193		)
Comprehensive income (loss) attributable to Aon shareholders	$	29		$	(246	)	$	2		$	244		$	29

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 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

	Nine Months Ended September 30, 2019
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income (loss)	$	1,175		$	504		$	2,388		$	(2,876	)	$	1,191
Less: Net income attributable to noncontrolling interests	—			—			33			—			33
Net income (loss) attributable to Aon shareholders	1,175			504			2,355			(2,876		)	1,158
Other comprehensive income (loss), net of tax:
Change in fair value of financial instruments	—			2			(5		)	—			(3		)
Foreign currency translation adjustments	—			—			(199		)	17			(182		)
Postretirement benefit obligation	—			42			20			—			62
Total other comprehensive income (loss)	—			44			(184		)	17			(123		)
Equity in other comprehensive income (loss) of subsidiaries, net of tax	(138		)	(223		)	(179		)	540			—
Less: Other comprehensive loss attributable to noncontrolling interests	—			—			(2		)	—			(2		)
Total other comprehensive income (loss) attributable to Aon shareholders	(138		)	(179		)	(361		)	557			(121		)
Comprehensive income (loss) attributable to Aon shareholders	$	1,037		$	325		$	1,994		$	(2,319	)	$	1,037

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		$	234		$	1,748		$	(1,963	)	$	821
Less: Net income attributable to noncontrolling interests	—			—			32			—			32
Net income (loss) attributable to Aon shareholders	802			234			1,716			(1,963		)	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 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		$	71		$	1,374		$	(1,445	)	$	654

Condensed Consolidating Statements of Financial Position

Condensed Consolidating Statement of Financial Position

	As of September 30, 2019
(millions)	Aon plc		Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Assets
Current assets
Cash and cash equivalents	$	—	$	1,530		$	491		$	(1,419	)	$	602
Short-term investments	—		63			114			—			177
Receivables, net	—		—			2,866			—			2,866
Fiduciary assets	—		—			11,041			—			11,041
Current intercompany receivables	153		4,090			13,669			(17,912		)	—
Other current assets	—		6			625			—			631
Total current assets	153		5,689			28,806			(19,331		)	15,317
Goodwill	—		—			8,071			—			8,071
Intangible assets, net	—		—			874			—			874
Fixed assets, net	—		—			606			—			606
Operating lease right-of-use assets	—		109			804			—			913
Deferred tax assets	93		513			150			(145		)	611
Prepaid pension	—		5			1,208			—			1,213
Non-current intercompany receivables	394		261			7,198			(7,853		)	—
Other non-current assets	2		35			525			—			562
Investment in subsidiary	9,052		20,085			(725		)	(28,412		)	—
Total assets	$	9,694	$	26,697		$	47,517		$	(55,741	)	$	28,167
Liabilities and equity
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	1,171	$	42		$	1,705		$	(1,419	)	$	1,499
Short-term debt and current portion of long-term debt	546		599			3			—			1,148
Fiduciary liabilities	—		—			11,041			—			11,041
Current intercompany payables	268		15,956			1,688			(17,912		)	—
Other current liabilities	—		79			1,084			—			1,163
Total current liabilities	1,985		16,676			15,521			(19,331		)	14,851
Long-term debt	4,213		1,907			—			—			6,120
Non-current operating lease liabilities	—		146			776			—			922
Deferred tax liabilities	1		—			353			(145		)	209
Pension, other postretirement, and postemployment liabilities	—		1,222			329			—			1,551
Non-current intercompany payables	—		7,364			489			(7,853		)	—
Other non-current liabilities	3		107			843			—			953
Total liabilities	6,202		27,422			18,311			(27,329		)	24,606
Equity
Total Aon shareholders’ equity	3,492		(725		)	29,137			(28,412		)	3,492
Noncontrolling interests	—		—			69			—			69
Total equity	3,492		(725		)	29,206			(28,412		)	3,561
Total liabilities and equity	$	9,694	$	26,697		$	47,517		$	(55,741	)	$	28,167

Condensed Consolidating Statement of Financial Position

	As of December 31, 2018
(millions)	Aon plc		Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Assets
Current assets
Cash and cash equivalents	$	—	$	862		$	575		$	(781	)	$	656
Short-term investments	—		56			116			—			172
Receivables, net	—		—			2,760			—			2,760
Fiduciary assets	—		—			10,166			—			10,166
Current intercompany receivables	191		897			11,634			(12,722		)	—
Other current assets	—		16			602			—			618
Total current assets	191		1,831			25,853			(13,503		)	14,372
Goodwill	—		—			8,171			—			8,171
Intangible assets, net	—		—			1,149			—			1,149
Fixed assets, net	—		—			588			—			588
Operating lease right-of-use assets	—		—			—			—			—
Deferred tax assets	94		467			144			(144		)	561
Prepaid pension	—		5			1,128			—			1,133
Non-current intercompany receivables	403		261			7,225			(7,889		)	—
Other non-current assets	1		30			417			—			448
Investment in subsidiary	8,433		19,132			(882		)	(26,683		)	—
Total assets	$	9,122	$	21,726		$	43,793		$	(48,219	)	$	26,422
Liabilities and equity
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	274	$	70		$	2,380		$	(781	)	$	1,943
Short-term debt and current portion of long-term debt	250		—			1			—			251
Fiduciary liabilities	—		—			10,166			—			10,166
Current intercompany payables	213		11,875			634			(12,722		)	—
Other current liabilities	—		69			867			—			936
Total current liabilities	737		12,014			14,048			(13,503		)	13,296
Long-term debt	4,231		1,762			—			—			5,993
Non-current operating lease liabilities	—		—			—			—			—
Deferred tax liabilities	—		—			325			(144		)	181
Pension, other postretirement, and postemployment liabilities	—		1,275			361			—			1,636
Non-current intercompany payables	—		7,390			499			(7,889		)	—
Other non-current liabilities	3		167			927			—			1,097
Total liabilities	4,971		22,608			16,160			(21,536		)	22,203
Equity
Total Aon shareholders’ equity	4,151		(882		)	27,565			(26,683		)	4,151
Noncontrolling interests	—		—			68			—			68
Total equity	4,151		(882		)	27,633			(26,683		)	4,219
Total liabilities and equity	$	9,122	$	21,726		$	43,793		$	(48,219	)	$	26,422

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statement of Cash Flows

	Nine Months Ended September 30, 2019
(millions)	Aon plc			Aon Corporation			Other Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities
Cash provided by (used for) operating activities	$	356		$	(118	)	$	1,578		$	(653	)	$	1,163
Cash flows from investing activities
Proceeds from investments				17			16						33
Payments for investments	—			(46		)	(49		)	1			(94		)
Net sales (purchases) of short-term investments - non-fiduciary	—			(7		)	—			—			(7		)
Acquisition of businesses, net of cash acquired	—			—			(39		)	—			(39		)
Sale of businesses, net of cash sold	—			—			43			—			43
Capital expenditures	—			—			(167		)	—			(167		)
Cash provided by (used for) investing activities	—			(36		)	(196		)	1			(231		)
Cash flows from financing activities
Share repurchase	(1,507		)	—			—			—			(1,507		)
Advances from (to) affiliates	1,277			79			(1,370		)	14			—
Issuance of shares for employee benefit plans	(133		)	—			—			—			(133		)
Issuance of debt	2,099			2,816			3						4,918
Repayment of debt	(1,785		)	(2,073		)	—			—			(3,858		)
Cash dividends to shareholders	(307		)	—			—			—			(307		)
Noncontrolling interests and other financing activities	—			—			(81		)	—			(81		)
Cash provided by (used for) financing activities	(356		)	822			(1,448		)	14			(968		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(18		)	—			(18		)
Net increase (decrease) in cash and cash equivalents	—			668			(84		)	(638		)	(54		)
Cash and cash equivalents at beginning of period	—			862			575			(781		)	656
Cash and cash equivalents at end of period	$	—		$	1,530		$	491		$	(1,419	)	$	602

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	$	(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	(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	154			(1,364		)	(2,371		)	2,326			(1,255		)
Effect of exchange rate changes 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