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Shareholders' Equity
 3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
Ordinary Shares
Aon has a share repurchase program authorized by the Company’s Board of Directors (the “Repurchase Program”). The Repurchase Program was established in April 2012 with $5.0 billion in authorized repurchases, and was increased by $5.0 billion in authorized repurchases in each of November 2014 and June 2017 for a total of $15.0 billion in repurchase authorizations. The Repurchase Program was adopted by Aon Ireland’s Board of Directors on April 1, 2020.
Under the Repurchase Program, the Company’s Class A Ordinary Shares may be repurchased through the open market or in privately negotiated transactions, from time to time, based on prevailing market conditions, and will be funded from available capital.
The following table summarizes the Company’s share repurchase activity (in millions, except per share data):
 
Three Months Ended March 31,
 
2020
 
2019
Shares repurchased
2.2

 
0.6

Average price per share
$
212.78

 
$
161.16

Costs recorded to retained earnings

 

Total repurchase cost
$
461

 
$
100

Additional associated costs
2

 
1

Total costs recorded to retained earnings
$
463

 
$
101


At March 31, 2020, the remaining authorized amount for share repurchases under the Repurchase Program was $1.6 billion. Under the Repurchase Program, the Company has repurchased a total of 130.9 million shares for an aggregate cost of approximately $13.4 billion. Due to COVID-19, the Company has temporarily suspended share repurchase.
Net Income Per Share
Weighted average ordinary shares outstanding are as follows (in millions):
 
Three Months Ended March 31,
 
2020
 
2019
Basic weighted average ordinary shares outstanding
233.2

 
242.2

Dilutive effect of potentially issuable shares
1.3

 
1.5

Diluted weighted average ordinary shares outstanding
234.5

 
243.7


Potentially issuable shares are not included in the computation of Diluted net income per share if their inclusion would be antidilutive. There were no shares and 0.1 million shares excluded from the calculation for the three months ended March 31, 2020 and March 31, 2019, respectively.
Accumulated Other Comprehensive Loss
Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions):
 
Change in Fair Value of Financial Instruments (1) 
 
Foreign Currency Translation Adjustments
 
Postretirement Benefit Obligation (2)
 
Total
Balance at December 31, 2019
$
(12
)
 
$
(1,305
)
 
$
(2,716
)
 
$
(4,033
)
Other comprehensive income (loss) before reclassifications, net
(9
)
 
(395
)
 
1

 
(403
)
Amounts reclassified from accumulated other comprehensive income
 
 


 


 


Amounts reclassified from accumulated other comprehensive income
5

 
—

 
30

 
35

Tax expense
(1
)
 
—

 
(7
)
 
(8
)
Amounts reclassified from accumulated other comprehensive income, net (3)
4

 
—

 
23

 
27

Net current period other comprehensive income (loss)
(5
)
 
(395
)
 
24

 
(376
)
Balance at March 31, 2020
$
(17
)
 
$
(1,700
)
 
$
(2,692
)
 
$
(4,409
)
(1)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Revenue, Interest expense, and Compensation and benefits in the Condensed Consolidated Statements of Income. Refer to Note 14 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity.
(2)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense) in the Condensed Consolidated Statements of Income.
(3)
It is the Company’s policy to release income tax effects from accumulated other comprehensive loss using the portfolio approach.
 
Change in Fair Value of Financial Instruments (1) 
 
Foreign Currency Translation Adjustments
 
Postretirement Benefit Obligation (2)
 
Total
Balance at December 31, 2018
$
(15
)
 
$
(1,319
)
 
$
(2,575
)
 
$
(3,909
)
Other comprehensive income before reclassifications, net
4

 
131

 
11

 
146

Amounts reclassified from accumulated other comprehensive income
 
 
 
 
 
 
 
Amounts reclassified from accumulated other comprehensive income
5

 
—

 
26

 
31

Tax expense
(2
)
 
—

 
(6
)
 
(8
)
Amounts reclassified from accumulated other comprehensive income, net (3)
3

 
—

 
20

 
23

Net current period other comprehensive income
7

 
131

 
31

 
169

Balance at March 31, 2019
$
(8
)
 
$
(1,188
)
 
$
(2,544
)
 
$
(3,740
)
(1)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Revenue, Interest expense, and Compensation and benefits in the Condensed Consolidated Statements of Income. Refer to Note 14 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity.
(2)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense) in the Condensed Consolidated Statements of Income.
(3)
It is the Company’s policy to release income tax effects from accumulated other comprehensive loss using the portfolio approach.