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Guarantee of Registered Securities (Tables)
3 Months Ended
Mar. 31, 2020
Guarantee of Registered Securities [Abstract]  
Condensed Consolidating Statements of Income
Condensed Consolidating Statement of Income
 
 
Three Months Ended March 31, 2020
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$

 
$

 
$
3,219

 
$

 
$
3,219

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 

 
12

 

 
(12
)
 
1,522

 

 
1,522

Information technology
 

 

 

 

 
111

 

 
111

Premises
 

 

 

 
5

 
68

 

 
73

Depreciation of fixed assets
 

 

 

 

 
41

 

 
41

Amortization and impairment of intangible assets
 

 

 

 

 
97

 

 
97

Other general expense
 

 
26

 

 
1

 
315

 

 
342

Total operating expenses
 

 
38

 

 
(6
)
 
2,154

 

 
2,186

Operating income (loss)
 

 
(38
)
 

 
6

 
1,065

 

 
1,033

Interest income
 

 

 

 
10

 
14

 
(22
)
 
2

Interest expense
 

 
(54
)
 
(11
)
 
(39
)
 
(1
)
 
22

 
(83
)
Intercompany interest income (expense)
 

 
8

 

 
(113
)
 
105

 

 

Intercompany other income (expense)
 

 
81

 

 
(128
)
 
47

 

 

Other income (expense)
 

 

 

 
(42
)
 
72

 
(1
)
 
29

Income (loss) from continuing operations before income taxes
 

 
(3
)
 
(11
)
 
(306
)
 
1,302

 
(1
)
 
981

Income tax expense (benefit)
 

 
(17
)
 
(2
)
 
(48
)
 
256

 

 
189

Net income (loss) from continuing operations
 

 
14

 
(9
)
 
(258
)
 
1,046

 
(1
)
 
792

Net income (loss) from discontinued operations
 

 

 

 

 
(1
)
 

 
(1
)
Net income (loss) before equity in earnings of subsidiaries
 

 
14

 
(9
)
 
(258
)
 
1,045

 
(1
)
 
791

Equity in earnings of subsidiaries
 
773

 
759

 
614

 
862

 

 
(3,008
)
 

Net income
 
773

 
773

 
605

 
604

 
1,045

 
(3,009
)
 
791

Less: Net income attributable to noncontrolling interests
 

 

 

 

 
19

 

 
19

Net income attributable to Aon shareholders
 
$
773

 
$
773

 
$
605

 
$
604

 
$
1,026

 
$
(3,009
)
 
$
772

Condensed Consolidating Statement of Income
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
$

 
$

 
$

 
$

 
$
3,143

 
$

 
$
3,143

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 

 
20

 

 
8

 
1,556

 

 
1,584

Information technology
 

 

 

 

 
117

 

 
117

Premises
 

 

 

 
4

 
83

 

 
87

Depreciation of fixed assets
 

 

 

 

 
40

 

 
40

Amortization and impairment of intangible assets
 

 

 

 

 
97

 

 
97

Other general expense
 

 

 

 
1

 
345

 

 
346

Total operating expenses
 

 
20

 

 
13

 
2,238

 

 
2,271

Operating income (loss)
 

 
(20
)
 

 
(13
)
 
905

 

 
872

Interest income
 

 

 

 
9

 
20

 
(27
)
 
2

Interest expense
 

 
(46
)
 
(24
)
 
(28
)
 
(1
)
 
27

 
(72
)
Intercompany interest income (expense)
 

 
4

 

 
(116
)
 
112

 

 

Intercompany other income (expense)
 

 
31

 

 
(94
)
 
63

 

 

Other income (expense)
 

 
5

 

 
(11
)
 
8

 
(2
)
 

Income (loss) from continuing operations before income taxes
 

 
(26
)
 
(24
)
 
(253
)
 
1,107

 
(2
)
 
802

Income tax expense (benefit)
 

 
(5
)
 
(5
)
 
(42
)
 
178

 

 
126

Net income (loss) from continuing operations
 

 
(21
)
 
(19
)
 
(211
)
 
929

 
(2
)
 
676

Net income (loss) from discontinued operations
 

 

 

 

 

 

 

Net income (loss) before equity in earnings of subsidiaries
 

 
(21
)
 
(19
)
 
(211
)
 
929

 
(2
)
 
676

Equity in earnings of subsidiaries
 

 
682

 
619

 
724

 

 
(2,025
)
 

Net income
 

 
661

 
600

 
513

 
929

 
(2,027
)
 
676

Less: Net income attributable to noncontrolling interests
 

 

 

 

 
17

 

 
17

Net income attributable to Aon shareholders
 
$

 
$
661

 
$
600

 
$
513

 
$
912

 
$
(2,027
)
 
$
659





Condensed Consolidating Statements of Comprehensive Income
Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended March 31, 2020
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$
773

 
$
773

 
$
605

 
$
604

 
$
1,045

 
$
(3,009
)
 
$
791

Less: Net income attributable to noncontrolling interests
 

 

 

 

 
19

 

 
19

Net income attributable to Aon shareholders
 
773

 
773

 
605

 
604

 
1,026

 
(3,009
)
 
772

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in fair value of financial instruments
 

 

 

 
(2
)
 
(3
)
 

 
(5
)
Foreign currency translation adjustments
 

 

 

 

 
(398
)
 
1

 
(397
)
Postretirement benefit obligation
 

 

 

 
13

 
11

 

 
24

Total other comprehensive income (loss)
 

 

 

 
11

 
(390
)
 
1

 
(378
)
Equity in other comprehensive income (loss) of subsidiaries, net of tax
 
(377
)
 
(377
)
 
(370
)
 
(381
)
 

 
1,505

 

Less: Other comprehensive loss attributable to noncontrolling interests
 

 

 

 

 
(2
)
 

 
(2
)
Total other comprehensive income (loss) attributable to Aon shareholders
 
(377
)
 
(377
)
 
(370
)
 
(370
)
 
(388
)
 
1,506

 
(376
)
Comprehensive income attributable to Aon shareholders
 
$
396

 
$
396

 
$
235

 
$
234

 
$
638

 
$
(1,503
)
 
$
396

Condensed Consolidating Statement of Comprehensive Income
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Net income
 
$

 
$
661

 
$
600

 
$
513

 
$
929

 
$
(2,027
)
 
$
676

Less: Net income attributable to noncontrolling interests
 

 

 

 

 
17

 

 
17

Net income attributable to Aon shareholders
 

 
661

 
600

 
513

 
912

 
(2,027
)
 
659

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in fair value of financial instruments
 

 

 

 
2

 
5

 

 
7

Foreign currency translation adjustments
 

 

 

 

 
131

 
2

 
133

Postretirement benefit obligation
 

 

 

 
22

 
9

 

 
31

Total other comprehensive income (loss)
 

 

 

 
24

 
145

 
2

 
171

Equity in other comprehensive income (loss) of subsidiaries, net of tax
 

 
167

 
139

 
115

 

 
(421
)
 

Less: Other comprehensive loss attributable to noncontrolling interests
 

 

 

 

 
2

 

 
2

Total other comprehensive income (loss) attributable to Aon shareholders
 

 
167

 
139

 
139

 
143

 
(419
)
 
169

Comprehensive income attributable to Aon shareholders
 
$

 
$
828

 
$
739

 
$
652

 
$
1,055

 
$
(2,446
)
 
$
828



Condensed Consolidating Statements of Financial Position
Condensed Consolidating Statement of Financial Position
 
 
As of March 31, 2020
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Assets
 
 
 
 

 
 
 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$

 
$
36

 
$
194

 
$
1,698

 
$
(1,238
)
 
$
690

Short-term investments
 

 

 

 
57

 
113

 

 
170

Receivables, net
 

 

 

 

 
3,554

 

 
3,554

Fiduciary assets
 

 

 

 

 
12,401

 

 
12,401

Current intercompany receivables
 

 
208

 
90

 
2,710

 
14,875

 
(17,883
)
 

Other current assets
 

 

 

 
4

 
526

 

 
530

Total current assets
 

 
208

 
126

 
2,965

 
33,167

 
(19,121
)
 
17,345

Goodwill
 

 

 

 

 
8,293

 

 
8,293

Intangible assets, net
 

 

 

 

 
746

 

 
746

Fixed assets, net
 

 

 

 

 
666

 

 
666

Operating lease right-of-use assets
 

 

 

 
103

 
794

 

 
897

Deferred tax assets
 

 
89

 
4

 
589

 
150

 
(194
)
 
638

Prepaid pension
 

 

 

 
7

 
1,157

 

 
1,164

Non-current intercompany receivables
 

 
397

 

 
261

 
7,044

 
(7,702
)
 

Other non-current assets
 

 

 

 
25

 
508

 

 
533

Investment in subsidiary
 
3,169

 
8,650

 
8,871

 
19,973

 

 
(40,663
)
 

Total assets
 
$
3,169

 
$
9,344

 
$
9,001

 
$
23,923

 
$
52,525

 
$
(67,680
)
 
$
30,282

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 
 
 

 
 
 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$

 
$
1,345

 
$

 
$
49

 
$
1,393

 
$
(1,238
)
 
$
1,549

Short-term debt and current portion of long-term debt
 

 
696

 

 
1,136

 
52

 

 
1,884

Fiduciary liabilities
 

 

 

 

 
12,401

 

 
12,401

Current intercompany payables
 

 
310

 
61

 
16,321

 
1,191

 
(17,883
)
 

Other current liabilities
 

 

 

 
82

 
1,195

 

 
1,277

Total current liabilities
 

 
2,351

 
61

 
17,588

 
16,232

 
(19,121
)
 
17,111

Long-term debt
 

 
3,822

 

 
2,405

 

 

 
6,227

Non-current operating lease liabilities
 

 

 

 
136

 
774

 

 
910

Deferred tax liabilities
 

 

 

 

 
383

 
(194
)
 
189

Pension, other postretirement, and postemployment liabilities
 

 

 

 
1,287

 
368

 

 
1,655

Non-current intercompany payables
 

 

 

 
7,210

 
492

 
(7,702
)
 

Other non-current liabilities
 

 
2

 

 
115

 
813

 

 
930

Total liabilities
 

 
6,175

 
61

 
28,741

 
19,062

 
(27,017
)
 
27,022

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
3,169

 
3,169

 
8,940

 
(4,818
)
 
33,372

 
(40,663
)
 
3,169

Noncontrolling interests
 

 

 

 

 
91

 

 
91

Total equity
 
3,169

 
3,169

 
8,940

 
(4,818
)
 
33,463

 
(40,663
)
 
3,260

Total liabilities and equity
 
$
3,169

 
$
9,344

 
$
9,001

 
$
23,923

 
$
52,525

 
$
(67,680
)
 
$
30,282

Condensed Consolidating Statement of Financial Position
 
 
As of December 31, 2019
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Assets
 
 
 
 

 
 
 
 

 
 

 
 

 
 

Current assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$

 
$

 
$
2,271

 
$
2,619

 
$
(4,100
)
 
$
790

Short-term investments
 

 

 

 
28

 
110

 

 
138

Receivables, net
 

 

 

 

 
3,112

 

 
3,112

Fiduciary assets
 

 

 

 

 
11,834

 

 
11,834

Current intercompany receivables
 

 
246

 
89

 
1,214

 
12,710

 
(14,259
)
 

Other current assets
 

 

 

 
7

 
595

 

 
602

Total current assets
 

 
246

 
89

 
3,520

 
30,980

 
(18,359
)
 
16,476

Goodwill
 

 

 

 

 
8,165

 

 
8,165

Intangible assets, net
 

 

 

 

 
783

 

 
783

Fixed assets, net
 

 

 

 

 
621

 

 
621

Operating lease right-of-use assets
 

 

 

 
110

 
819

 

 
929

Deferred tax assets
 

 
89

 
4

 
577

 
165

 
(190
)
 
645

Prepaid pension
 

 

 

 
7

 
1,209

 

 
1,216

Non-current intercompany receivables
 

 
868

 

 
261

 
7,046

 
(8,175
)
 

Other non-current assets
 

 

 

 
32

 
538

 

 
570

Investment in subsidiary
 
3,375

 
8,899

 
12,211

 
19,470

 

 
(43,955
)
 

Total assets
 
$
3,375

 
$
10,102

 
$
12,304

 
$
23,977

 
$
50,326

 
$
(70,679
)
 
$
29,405

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
 
 
 

 
 
 
 

 
 

 
 

 
 

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
 
$

 
$
2,157

 
$
1,994

 
$
56

 
$
1,832

 
$
(4,100
)
 
$
1,939

Short-term debt and current portion of long-term debt
 

 
112

 

 
600

 

 

 
712

Fiduciary liabilities
 

 

 

 

 
11,834

 

 
11,834

Current intercompany payables
 

 
234

 
61

 
12,978

 
986

 
(14,259
)
 

Other current liabilities
 

 

 

 
80

 
1,006

 

 
1,086

Total current liabilities
 

 
2,503

 
2,055

 
13,714

 
15,658

 
(18,359
)
 
15,571

Long-term debt
 

 
4,223

 

 
2,404

 

 

 
6,627

Non-current operating lease liabilities
 

 

 

 
143

 
801

 

 
944

Deferred tax liabilities
 

 

 

 

 
389

 
(190
)
 
199

Pension, other postretirement, and postemployment liabilities
 

 

 

 
1,348

 
390

 

 
1,738

Non-current intercompany payables
 

 

 

 
7,212

 
963

 
(8,175
)
 

Other non-current liabilities
 

 
1

 

 
113

 
763

 

 
877

Total liabilities
 

 
6,727

 
2,055

 
24,934

 
18,964

 
(26,724
)
 
25,956

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Aon shareholders’ equity
 
3,375

 
3,375

 
10,249

 
(957
)
 
31,288

 
(43,955
)
 
3,375

Noncontrolling interests
 

 

 

 

 
74

 

 
74

Total equity
 
3,375

 
3,375

 
10,249

 
(957
)
 
31,362

 
(43,955
)
 
3,449

Total liabilities and equity
 
$
3,375

 
$
10,102

 
$
12,304

 
$
23,977

 
$
50,326

 
$
(70,679
)
 
$
29,405


Condensed Consolidating Statements of Cash Flows
Condensed Consolidating Statement of Cash Flows
 
 
Three Months Ended March 31, 2020
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$

 
$
1,561

 
$
3,648

 
$
(512
)
 
$
852

 
$
(5,211
)
 
$
338

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 

 

 
2

 
4

 

 
6

Payments for investments
 

 
(450
)
 
(518
)
 
(30
)
 
(13
)
 
968

 
(43
)
Net sales (purchases) of short-term investments - non-fiduciary
 

 

 

 
(28
)
 
(10
)
 

 
(38
)
Acquisition of businesses, net of cash acquired
 

 

 

 

 
(334
)
 

 
(334
)
Sale of businesses, net of cash sold
 

 

 

 

 
30

 

 
30

Capital expenditures
 

 

 

 

 
(59
)
 

 
(59
)
Cash provided by (used for) investing activities
 

 
(450
)
 
(518
)
 
(56
)
 
(382
)
 
968

 
(438
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share repurchase
 

 
(463
)
 

 

 

 

 
(463
)
Advances from (to) affiliates
 

 
(618
)
 
(3,094
)
 
(2,044
)
 
(1,349
)
 
7,105

 

Issuance of shares for employee benefit plans
 

 
(112
)
 

 

 

 

 
(112
)
Issuance of debt
 

 
457

 

 
1,603

 

 
 
 
2,060

Repayment of debt
 

 
(273
)
 

 
(1,068
)
 

 

 
(1,341
)
Cash dividends to shareholders
 

 
(102
)
 

 

 

 

 
(102
)
Noncontrolling interests and other financing activities
 

 

 

 

 
40

 

 
40

Cash provided by (used for) financing activities
 

 
(1,111
)
 
(3,094
)
 
(1,509
)
 
(1,309
)
 
7,105

 
82

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 

 

 

 

 
(82
)
 

 
(82
)
Net increase (decrease) in cash and cash equivalents
 

 

 
36

 
(2,077
)
 
(921
)
 
2,862

 
(100
)
Cash and cash equivalents at beginning of period
 

 

 

 
2,271

 
2,619

 
(4,100
)
 
790

Cash and cash equivalents at end of period
 
$

 
$

 
$
36

 
$
194

 
$
1,698

 
$
(1,238
)
 
$
690


Condensed Consolidating Statement of Cash Flows
 
 
Three Months Ended March 31, 2019
(millions)
 
Aon Ireland
 
Aon UK
 
Aon Global Holdings Limited
 
Aon Corporation
 
Other Non-Guarantor Subsidiaries
 
Consolidating Adjustments
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities
 
$

 
$
(11
)
 
$
529

 
$
(34
)
 
$
143

 
$
(553
)
 
$
74

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from investments
 

 

 
72

 
8

 
4

 
(72
)
 
12

Payments for investments
 

 

 

 
(9
)
 
(77
)
 
72

 
(14
)
Net sales (purchases) of short-term investments - non-fiduciary
 

 

 

 
9

 
32

 

 
41

Acquisition of businesses, net of cash acquired
 

 

 

 

 
(15
)
 

 
(15
)
Sale of businesses, net of cash sold
 

 

 

 

 
6

 

 
6

Capital expenditures
 
 
 
 
 
 
 

 
(57
)
 

 
(57
)
Cash provided by (used for) investing activities
 

 

 
72

 
8

 
(107
)
 

 
(27
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share repurchase
 

 
(100
)
 

 

 

 

 
(100
)
Advances from (to) affiliates
 

 
305

 
(601
)
 
(265
)
 
(550
)
 
1,111

 

Issuance of shares for employee benefit plans
 

 
(98
)
 

 

 

 

 
(98
)
Issuance of debt
 

 
384

 

 
485

 
2

 

 
871

Repayment of debt
 

 
(384
)
 

 
(310
)
 

 

 
(694
)
Cash dividends to shareholders
 

 
(96
)
 

 

 

 

 
(96
)
Noncontrolling interests and other financing activities
 

 

 

 

 
(23
)
 

 
(23
)
Cash provided by (used for) financing activities
 

 
11

 
(601
)
 
(90
)
 
(571
)
 
1,111

 
(140
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
 

 

 

 

 
37

 

 
37

Net increase (decrease) in cash and cash equivalents
 

 

 

 
(116
)
 
(498
)
 
558

 
(56
)
Cash and cash equivalents at beginning of period
 

 

 

 
862

 
3,473

 
(3,679
)
 
656

Cash and cash equivalents at end of period
 
$

 
$

 
$

 
$
746

 
$
2,975

 
$
(3,121
)
 
$
600