UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

     ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-7933

Aon plc

(Exact Name of Registrant as Specified in Its Charter)

IRELAND	98-1539969
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

Metropolitan Building, James Joyce Street, Dublin 1, Ireland                  D01 K0Y8

     (Address of principal executive offices)                      (Zip Code)

+353 1 266 6000

(Registrant’s Telephone Number,

Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Ordinary Shares $0.01 nominal value	AON	New York Stock Exchange
Guarantees of Aon plc’s 4.00% Senior Notes due 2023	AON23	New York Stock Exchange
Guarantees of Aon plc’s 3.50% Senior Notes due 2024	AON24	New York Stock Exchange
Guarantees of Aon plc’s 3.875% Senior Notes due 2025	AON25	New York Stock Exchange
Guarantees of Aon plc’s 2.875% Senior Notes due 2026	AON26	New York Stock Exchange
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.85% Senior Notes due 2027	AON27	New York Stock Exchange
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.05% Senior Notes due 2031	AON31	New York Stock Exchange
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.60% Senior Notes due 2031	AON31A	New York Stock Exchange
Guarantees of Aon Corporation and Aon Global Holdings plc’s 5.00% Senior Notes due 2032	AON32	New York Stock Exchange
Guarantees of Aon plc’s 4.25% Senior Notes due 2042	AON42	New York Stock Exchange
Guarantees of Aon plc’s 4.45% Senior Notes due 2043	AON43	New York Stock Exchange
Guarantees of Aon plc’s 4.60% Senior Notes due 2044	AON44	New York Stock Exchange
Guarantees of Aon plc’s 4.75% Senior Notes due 2045	AON45	New York Stock Exchange
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.90% Senior Notes due 2051	AON51	New York Stock Exchange
Guarantees of Aon Corporation and Aon Global Holdings plc’s 3.90% Senior Notes due 2052	AON52	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ☒  No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☒  No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐ No ☒

Number of class A ordinary shares of Aon plc, $0.01 nominal value, outstanding as of October 27, 2022: 206,852,936

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS

This report contains certain statements related to future results, or states our intentions, beliefs, and expectations or predictions for the future, all of which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent management’s expectations or forecasts of future events. Forward-looking statements are typically identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “project,” “intend,” “plan,” “probably,” “potential,” “looking forward,” “continue,” and other similar terms, and future or conditional tense verbs like “could,” “may,” “might,” “should,” “will,” and “would.” You can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. For example, we may use forward-looking statements when addressing topics such as: market and industry conditions, including competitive and pricing trends; changes in our business strategies and methods of generating revenue; the development and performance of our services and products; changes in the composition or level of our revenues; our cost structure and the outcome of cost-saving or restructuring initiatives; the outcome of contingencies; dividend policy; the expected impact of acquisitions, dispositions, and other significant transactions or the termination thereof; litigation and regulatory matters; pension obligations; cash flow and liquidity; expected effective tax rate; expected foreign currency translation impacts; potential changes in laws or future actions by regulators; and the impact of changes in accounting rules. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. Potential factors, which may be revised or supplemented in subsequent reports filed or furnished with the Securities and Exchange Commission (the “SEC”), that could impact results include:

•changes in the competitive environment, due to macroeconomic conditions or otherwise, or damage to our reputation;

•fluctuations in currency exchange, interest or inflation rates that could impact our financial condition or results;

•changes in global equity and fixed income markets that could affect the return on invested assets;

•changes in the funded status of our various defined benefit pension plans and the impact of any increased pension funding resulting from those changes;

•the level of our debt and the terms thereof reducing our flexibility or increasing borrowing costs;

•rating agency actions that could limit our access to capital and our competitive position;

•our global tax rate being subject to a variety of different factors, which could create volatility in that tax rate;

•changes in our accounting estimates and assumptions on our financial statements;

•limits on our subsidiaries’ ability to pay dividends or otherwise make payments to us;

•the impact of legal proceedings and other contingencies, including those arising from acquisition or disposition transactions, errors and omissions and other claims against us;

•the impact of, and potential challenges in complying with, laws and regulations of the jurisdictions in which we operate, particularly given the global nature of operations and the possibility of differing or conflicting laws and regulations, or the application or interpretation thereof, across such jurisdictions;

•the impact of any regulatory investigations brought in Ireland, the United Kingdom (the “U.K.”), the United States (the “U.S.”) and other countries;

•failure to protect intellectual property rights or allegations that we have infringed on the intellectual property rights of others;

•general economic and political conditions in the countries in which we do business around the world, including the withdrawal of the U.K. from the European Union (the “E.U.”);

•the failure to retain, attract and develop experienced and qualified personnel;

•international risks associated with our global operations, including impacts from military conflicts or political instability, such as the ongoing Russian war in Ukraine;

•the effects of natural or man-made disasters, including the effects of the COVID-19 and other health pandemics and the impacts of climate change;

•any system or network disruption or breach resulting in operational interruption or improper disclosure of confidential, personal, or proprietary data, and resulting liabilities or damage to our reputation;

•our ability to develop, implement, update and enhance new technology;

•the actions taken by third parties that perform aspects of our business operations and client services;

•the extent to which we are exposed to certain risks, including lawsuits, related to our actions we may take in being responsible for making decisions on behalf of clients in our investment businesses or in other advisory services that we currently provide, or will provide in the future;

•our ability to continue, and the costs and risks associated with, growing, developing and integrating acquired business, and entering into new lines of business or products;

•our ability to secure regulatory approval and complete transactions, and the costs and risks associated with the failure to consummate proposed transactions;

•changes in commercial property and casualty markets, commercial premium rates or methods of compensation;

•our ability to implement initiatives intended to yield cost savings and the ability to achieve those cost savings; and

•the effects of Irish law on our operating flexibility and the enforcement of judgments against us.

Any or all of our forward-looking statements may turn out to be inaccurate, and there are no guarantees about our performance. The factors identified above are not exhaustive. Aon and its subsidiaries operate in a dynamic business environment in which new risks may emerge frequently. Accordingly, readers should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. We are under no (and expressly disclaim any) obligation to update or alter any forward-looking statement that we may make from time to time, whether as a result of new information, future events, or otherwise. Further information about factors that could materially affect Aon, including our results of operations and financial condition, is contained in the “Risk Factors” section in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021.

These factors may be revised or supplemented in our subsequent periodic filings with the SEC.

Table of Contents

PART I
	Item 1. Financial Statements
	Aon plc Condensed Consolidated Statements of Income
	Aon plc Condensed Consolidated Statements of Comprehensive Income
	Aon plc Condensed Consolidated Statements of Financial Position
	Aon plc Condensed Consolidated Statements of Shareholders’ Equity
	Aon plc Condensed Consolidated Statements of Cash Flows
	Notes to Condensed Consolidated Financial Statements
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
	Item 3. Quantitative and Qualitative Disclosures about Market Risk
	Item 4. Controls and Procedures
PART II
	Item 1. Legal Proceedings
	Item 1A. Risk Factors
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
	Item 3. Defaults Upon Senior Securities
	Item 4. Mine Safety Disclosures
	Item 5. Other Information
	Item 6. Exhibits
	Signature
	Exhibit Index

The below definitions apply throughout this report unless the context requires otherwise:

Term	Definition
AGI	Allianz Global Investors U.S. LLC
AUM	Assets Under Management
CCC	Christchurch City Council
CODM	Chief Operating Decision Maker
DCF	Discounted Cash Flow
E&O	Errors and Omissions
EBITDA	Earnings Before Interest, Taxes, Depreciation, and Amortization
EMEA	Europe, the Middle East, and Africa
ERISA	Employee Retirement Income Security Act of 1974
ESG	Environmental, Social, and Governance
E.U.	European Union
FCA	Financial Conduct Authority
GAAP	Generally Accepted Accounting Principles
LOC	Letter of Credit
NEBC	National Employee Benefits Committee
P&C	Property and Casualty
PSA	Performance Share Awards
RSU	Restricted Share Units
SEC	Securities and Exchange Commission
U.K.	United Kingdom
U.S.	United States
WTW	Willis Towers Watson Public Limited Company

Part I Financial Information

Item 1. Financial Statements

Aon plc

Condensed Consolidated Statements of Income

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(millions, except per share data)	2022		2021		2022		2021
Revenue
Total revenue	$	2,696	$	2,702	$	9,349	$	9,113
Expenses
Compensation and benefits	1,532		1,835		4,938		5,182
Information technology	133		130		371		359
Premises	71		98		216		251
Depreciation of fixed assets	37		56		115		138
Amortization and impairment of intangible assets	34		36		87		112
Other general expense	299		1,348		965		1,955
Total operating expenses	2,106		3,503		6,692		7,997
Operating income (loss)	590		(801)		2,657		1,116
Interest income	7		3		15		9
Interest expense	(103)		(80)		(296)		(237)
Other income (expense)	16		10		71		7
Income (loss) before income taxes	510		(868)		2,447		895
Income tax expense	92		23		467		460
Net income (loss)	418		(891)		1,980		435
Less: Net income attributable to noncontrolling interests	10		9		48		43
Net income (loss) attributable to Aon shareholders	$	408	$	(900)	$	1,932	$	392
Basic net income (loss) per share attributable to Aon shareholders	$	1.93	$	(3.99)	$	9.06	$	1.73
Diluted net income (loss) per share attributable to Aon shareholders	$	1.92	$	(3.99)	$	9.00	$	1.72
Weighted average ordinary shares outstanding - basic	210.9		225.4		213.2		226.5
Weighted average ordinary shares outstanding - diluted	212.6		225.4		214.6		227.7

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

6

Aon plc

Condensed Consolidated Statements of Comprehensive Income

(Unaudited) 

	Three Months Ended September 30,				Nine Months Ended September 30,
(millions)	2022		2021		2022		2021
Net income (loss)	$	418	$	(891)	$	1,980	$	435
Less: Net income attributable to noncontrolling interests	10		9		48		43
Net income (loss) attributable to Aon shareholders	408		(900)		1,932		392
Other comprehensive income (loss), net of tax:
Change in fair value of financial instruments	(8)		(5)		(16)		5
Foreign currency translation adjustments	(676)		(153)		(1,119)		(108)
Postretirement benefit obligation	26		25		87		87
Total other comprehensive loss	(658)		(133)		(1,048)		(16)
Less: Other comprehensive income attributable to noncontrolling interests	1		—		—		—
Total other comprehensive loss attributable to Aon shareholders	(659)		(133)		(1,048)		(16)
Comprehensive income (loss) attributable to Aon shareholders	$	(251)	$	(1,033)	$	884	$	376

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

7

Aon plc

Condensed Consolidated Statements of Financial Position

	(Unaudited)
(millions, except nominal value)	September 30, 2022		December 31, 2021
Assets
Current assets
Cash and cash equivalents	$	692	$	544
Short-term investments	251		292
Receivables, net	2,971		3,094
Fiduciary assets	14,699		14,386
Other current assets	563		716
Total current assets	19,176		19,032
Goodwill	7,979		8,434
Intangible assets, net	456		492
Fixed assets, net	510		529
Operating lease right-of-use assets	668		786
Deferred tax assets	819		766
Prepaid pension	1,140		1,366
Other non-current assets	475		512
Total assets	$	31,223	$	31,917
Liabilities and equity (deficit)
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	1,798	$	2,192
Short-term debt and current portion of long-term debt	711		1,164
Fiduciary liabilities	14,699		14,386
Other current liabilities	1,480		1,331
Total current liabilities	18,688		19,073
Long-term debt	10,116		8,228
Non-current operating lease liabilities	667		772
Deferred tax liabilities	332		401
Pension, other postretirement, and postemployment liabilities	1,237		1,375
Other non-current liabilities	853		910
Total liabilities	31,893		30,759
Equity (deficit)
Ordinary shares - $0.01 nominal value      Authorized: 500.0 shares (issued: 2022 - 207.6; 2021 - 214.8)	2		2
Additional paid-in capital	6,772		6,624
Accumulated deficit	(2,638)		(1,694)
Accumulated other comprehensive loss	(4,919)		(3,871)
Total Aon shareholders' equity (deficit)	(783)		1,061
Noncontrolling interests	113		97
Total equity (deficit)	(670)		1,158
Total liabilities and equity (deficit)	$	31,223	$	31,917

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

8

Aon plc

Condensed Consolidated Statements of Shareholders’ Equity (Deficit)

(Unaudited) 

(millions)	Shares	Ordinary Shares and Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated  Other Comprehensive Loss, Net of Tax		Non- controlling Interests		Total
Balance at January 1, 2022	214.8	$	6,626	$	(1,694)	$	(3,871)	$	97	$	1,158
Net income	—	—		1,023		—		25		1,048
Shares issued - employee stock compensation plans	0.9	(116)		—		—		—		(116)
Shares repurchased	(2.8)	—		(828)		—		—		(828)
Share-based compensation expense	—	119		—		—		—		119
Dividends to shareholders ($0.51 per share)	—	—		(110)		—		—		(110)
Net change in fair value of financial instruments	—	—		—		1		—		1
Net foreign currency translation adjustments	—	—		—		(6)		(1)		(7)
Net postretirement benefit obligation	—	—		—		33		—		33
Dividends paid to noncontrolling interests on subsidiary common stock	—	—		—		—		(7)		(7)
Balance at March 31, 2022	212.9	$	6,629	$	(1,609)	$	(3,843)	$	114	$	1,291
Net income	—	—		501		—		13		514
Shares issued - employee stock compensation plans	0.4	(50)		—		—		—		(50)
Shares repurchased	(1.7)	—		(500)		—		—		(500)
Share-based compensation expense	—	92		—		—		—		92
Dividends to shareholders ($0.56 per share)	—	—		(119)		—		—		(119)
Net change in fair value of financial instruments	—	—		—		(9)		—		(9)
Net foreign currency translation adjustments	—	—		—		(436)		—		(436)
Net postretirement benefit obligation	—	—		—		28		—		28
Dividends paid to noncontrolling interests on subsidiary common stock	—	—		—		—		(23)		(23)
Balance at June 30, 2022	211.6	$	6,671	$	(1,727)	$	(4,260)	$	104	$	788
Net income	—	—		408		—		10		418
Shares issued - employee stock compensation plans	0.2	11		(1)		—		—		10
Shares repurchased	(4.2)	—		(1,200)		—		—		(1,200)
Share-based compensation expense	—	93		—		—		—		93
Dividends to shareholders ($0.56 per share)	—	—		(118)		—		—		(118)
Net change in fair value of financial instruments	—	—		—		(8)		—		(8)
Net foreign currency translation adjustments	—	—		—		(677)		1		(676)
Net postretirement benefit obligation	—	—		—		26		—		26
Purchases of subsidiary shares from noncontrolling interests	—	(1)		—		—		(1)		(2)
Dividends paid to noncontrolling interests on subsidiary common stock	—	—		—		—		(1)		(1)
Balance at September 30, 2022	207.6	$	6,774	$	(2,638)	$	(4,919)	$	113	$	(670)

9

(millions)	Shares	Ordinary Shares and Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated  Other Comprehensive Loss, Net of Tax		Non- controlling Interests		Total
Balance at January 1, 2021	225.5	$	6,314	$	1,042	$	(3,861)	$	88	$	3,583
Net income	—	—		913		—		20		933
Shares issued - employee stock compensation plans	0.9	(87)		—		—		—		(87)
Shares repurchased	(0.2)	—		(50)		—		—		(50)
Share-based compensation expense	—	131		—		—		—		131
Dividends to shareholders ($0.46 per share)	—	—		(104)		—		—		(104)
Net change in fair value of financial instruments	—	—		—		11		—		11
Net foreign currency translation adjustments	—	—		—		(70)		—		(70)
Net postretirement benefit obligation	—	—		—		29		—		29
Purchases of subsidiary shares from noncontrolling interests	—	(8)		—		—		(6)		(14)
Dividends paid to noncontrolling interests on subsidiary common stock	—	—		—		—		(1)		(1)
Balance at March 31, 2021	226.2	$	6,350	$	1,801	$	(3,891)	$	101	$	4,361
Net income	—	—		379		—		14		393
Shares issued - employee stock compensation plans	0.5	(52)		—		—		—		(52)
Shares repurchased	(1.1)	—		(242)		—		—		(242)
Share-based compensation expense	—	85		—		—		—		85
Dividends to shareholders ($0.51 per share)	—	—		(115)		—		—		(115)
Net change in fair value of financial instruments	—	—		—		(1)		—		(1)
Net foreign currency translation adjustments	—	—		—		115		—		115
Net postretirement benefit obligation	—	—		—		33		—		33
Dividends paid to noncontrolling interests on subsidiary common stock	—	—		—		—		(10)		(10)
Balance at June 30, 2021	225.6	$	6,383	$	1,823	$	(3,744)	$	105	$	4,567
Net income (loss)	—	—		(900)		—		9		(891)
Shares issued - employee stock compensation plans	0.2	18		(1)		—		—		17
Shares repurchased	(4.4)	—		(1,251)		—		—		(1,251)
Share-based compensation expense	—	130		—		—		—		130
Dividends to shareholders ($0.51 per share)	—	—		(116)		—		—		(116)
Net change in fair value of financial instruments	—	—		—		(5)		—		(5)
Net foreign currency translation adjustments	—	—		—		(153)		—		(153)
Net postretirement benefit obligation	—	—		—		25		—		25
Dividends paid to noncontrolling interests on subsidiary common stock	—	—		—		—		(24)		(24)
Balance at September 30, 2021	221.4	$	6,531	$	(445)	$	(3,877)	$	90	$	2,299

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

10

Aon plc

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended September 30,
(millions)	2022		2021
Cash flows from operating activities
Net income	$	1,980	$	435
Adjustments to reconcile net income to cash provided by operating activities:
Gain from sales of businesses	(53)		(2)
Depreciation of fixed assets	115		138
Amortization and impairment of intangible assets	87		112
Share-based compensation expense	304		346
Deferred income taxes	(87)		83
Change in assets and liabilities:
Receivables, net	(146)		(79)
Accounts payable and accrued liabilities	(255)		22
Current income taxes	136		47
Pension, other postretirement and postemployment liabilities	(44)		(101)
Other assets and liabilities	140		250
Cash provided by operating activities	2,177		1,251
Cash flows from investing activities
Proceeds from investments	71		51
Payments for investments	(95)		(68)
Net sales (purchases) of short-term investments - non fiduciary	15		(2)
Acquisition of businesses, net of cash and funds held on behalf of clients	(154)		(3)
Sale of businesses, net of cash and funds held on behalf of clients	80		8
Capital expenditures	(126)		(102)
Cash used for investing activities	(209)		(116)
Cash flows from financing activities
Share repurchase	(2,528)		(1,543)
Issuance of shares for employee benefit plans	(156)		(122)
Commercial paper issuances, net of repayments	(425)		151
Issuance of debt	1,967		999
Repayment of debt	—		(413)
Increase in fiduciary liabilities, net of fiduciary receivables	1,200		786
Cash dividends to shareholders	(347)		(335)
Noncontrolling interests and other financing activities	(50)		(117)
Cash used for financing activities	(339)		(594)
Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients	(1,079)		(93)
Net increase in cash and cash equivalents and funds held on behalf of clients	550		448
Cash, cash equivalents and funds held on behalf of clients at beginning of period	6,645		6,573
Cash, cash equivalents and funds held on behalf of clients at end of period	$	7,195	$	7,021
Reconciliation of cash and cash equivalents and funds held on behalf of clients:
Cash and cash equivalents	$	692	$	609
Funds held on behalf of clients	6,503		6,412
Total cash and cash equivalents and funds held on behalf of clients	$	7,195	$	7,021
Supplemental disclosures:
Interest paid	$	219	$	193
Income taxes paid, net of refunds	$	418	$	330

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

11

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. Basis of Presentation

The accompanying Condensed Consolidated Financial Statements and Notes thereto have been prepared in accordance with U.S. GAAP. The Condensed Consolidated Financial Statements include the accounts of Aon plc and all of its controlled subsidiaries (“Aon” or the “Company”). Intercompany accounts and transactions have been eliminated. The Condensed Consolidated Financial Statements include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows for all periods presented.

Certain information and disclosures normally included in the Consolidated Financial Statements prepared in accordance with U.S. GAAP have been condensed or omitted. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The results for the three and nine months ended September 30, 2022 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2022.

Use of Estimates

The preparation of the accompanying Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the Condensed Consolidated Financial Statements in future periods.

Revision of Previously Issued Financial Statements

During the fourth quarter of 2021, the Company identified and corrected an immaterial presentation error related to Funds held on behalf of clients in the Consolidated Statements of Cash Flows. The Company made appropriate revisions to its Condensed Consolidated Statements of Cash Flows for historical periods. Further information is contained in Note 1 “Basis of Presentation” of the Notes to Consolidated Financial Statements in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Reclassification

Certain amounts in prior periods' Condensed Consolidated Financial Statements have been reclassified to conform to the current year presentation. In prior periods, commercial paper issuances and repayments were included in Issuance of debt and Repayment of debt, respectively, in the Condensed Consolidated Statements of Cash Flows. The net amount of commercial paper activity is now disclosed separately in Commercial paper issuances, net of repayments in the Condensed Consolidated Statements of Cash Flows. For the nine months ended September 30, 2021, commercial paper issuances reclassified from Issuance of debt was $2,174 million and commercial paper repayments reclassified from Repayment of debt was $2,024 million. Further information on the gross commercial paper activity for the current and prior year periods is included within the Liquidity and Financial Conditions section of Part I Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

2. Accounting Principles and Practices

All issued, but not yet effective, guidance has been deemed not applicable or not significant to the Condensed Consolidated Financial Statements.

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3. Revenue from Contracts with Customers

Disaggregation of Revenue

The following table summarizes revenue from contracts with customers by principal service line (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Commercial Risk Solutions	$	1,482	$	1,505	$	4,893	$	4,788
Reinsurance Solutions	396		353		1,909		1,775
Health Solutions	494		497		1,546		1,503
Wealth Solutions	326		351		1,014		1,062
Eliminations	(2)		(4)		(13)		(15)
Total revenue	$	2,696	$	2,702	$	9,349	$	9,113

Consolidated revenue from contracts with customers by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
United States	$	1,338	$	1,329	$	4,094	$	3,900
Americas other than United States	250		230		814		748
United Kingdom	331		340		1,348		1,368
Ireland	22		22		76		94
Europe, Middle East, & Africa other than United Kingdom and Ireland	403		438		1,930		2,028
Asia Pacific	352		343		1,087		975
Total revenue	$	2,696	$	2,702	$	9,349	$	9,113

Contract Costs

An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Balance at beginning of period	$	239	$	222	$	361	$	339
Additions	320		340		1,022		1,022
Amortization	(291)		(310)		(1,109)		(1,110)
Impairment	—		—		—		—
Foreign currency translation and other	(12)		(3)		(18)		(2)
Balance at end of period	$	256	$	249	$	256	$	249

An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Balance at beginning of period	$	182	$	175	$	179	$	184
Additions