Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information | |
Entity Registrant Name | Aon plc |
Entity Central Index Key | 315293 |
Document Type | 10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -19 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 301,048,034 |
Document Fiscal Year Focus | 2013 |
Document Fiscal Period Focus | Q3 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenue | ||||||||
Commissions, fees and other | $2,786 | $2,726 | $8,585 | $8,368 | ||||
Fiduciary investment income | 8 | 11 | 21 | 31 | ||||
Total revenue | 2,794 | 2,737 | 8,606 | 8,399 | ||||
Expenses | ||||||||
Compensation and benefits | 1,666 | 1,620 | 5,103 | 4,920 | ||||
Other general expenses | 764 | 778 | 2,347 | 2,344 | ||||
Total operating expenses | 2,430 | 2,398 | 7,450 | 7,264 | ||||
Operating income | 364 | 339 | 1,156 | 1,135 | ||||
Interest income | 3 | 1 | 6 | 6 | ||||
Interest expense | -53 | -57 | -153 | -173 | ||||
Other income (expense) | 39 | -9 | 54 | 3 | ||||
Income from continuing operations before income taxes | 353 | 274 | 1,063 | 971 | ||||
Income taxes | 89 | 64 | 275 | 257 | ||||
Income from continuing operations | 264 | 210 | 788 | 714 | ||||
Loss from discontinued operations before income taxes | 0 | 0 | 0 | -1 | ||||
Income taxes | 0 | 0 | 0 | 0 | ||||
Loss from discontinued operations | 0 | 0 | 0 | -1 | ||||
Net income | 264 | 210 | 788 | 713 | ||||
Less: Net income attributable to noncontrolling interests | 8 | 6 | 30 | 25 | ||||
Net income attributable to Aon shareholders | 256 | 204 | 758 | 688 | ||||
Net income (loss) attributable to Aon shareholders | ||||||||
Income from continuing operations | 256 | 204 | 758 | 689 | ||||
Loss from discontinued operations | 0 | 0 | 0 | -1 | ||||
Net income attributable to Aon shareholders | $256 | $204 | $758 | $688 | ||||
Basic net income per share attributable to Aon shareholders | ||||||||
Continuing operations (in dollars per share) | $0.83 | $0.62 | $2.42 | $2.08 | ||||
Discontinued operations (in dollars per share) | $0 | $0 | $0 | $0 | ||||
Net income (in dollars per share) | $0.83 | $0.62 | $2.42 | $2.08 | ||||
Diluted net income per share attributable to Aon shareholders | ||||||||
Continuing operations (in dollars per share) | $0.82 | $0.62 | $2.39 | $2.06 | ||||
Discontinued operations (in dollars per share) | $0 | $0 | $0 | $0 | ||||
Net income (in dollars per share) | $0.82 | $0.62 | $2.39 | $2.06 | ||||
Cash dividends per share paid on ordinary shares (in dollars per share) | $0.18 | $0.16 | $0.51 | $0.46 | ||||
Weighted average ordinary shares outstanding - basic | 309.5 | [1] | 327.3 | [1] | 313.2 | [1] | 330.6 | [1] |
Weighted average ordinary shares outstanding - diluted | 312.9 | 331 | 316.7 | 334.4 | ||||
[1] | Includes 3.8 million and 4.5 million of participating securities for the three months ended September 30, 2013 and 2012, respectively, and 4.0 million and 4.7 million of participating securities for the nine months ended September 30, 2013 and 2012, respectively. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $264 | $210 | $788 | $713 |
Less: Net income attributable to noncontrolling interests | 8 | 6 | 30 | 25 |
Net income attributable to Aon shareholders | 256 | 204 | 758 | 688 |
Other comprehensive (loss) income, net of tax: | ||||
Change in fair value of investments | -14 | 0 | -1 | 0 |
Change in fair value of derivatives | 9 | 15 | -12 | 5 |
Foreign currency translation adjustments | 155 | 164 | -77 | 71 |
Post-retirement benefit obligation | 24 | 7 | 65 | 46 |
Total other comprehensive income (loss) | 174 | 186 | -25 | 122 |
Less: Other comprehensive income attributable to noncontrolling interests | 3 | 4 | 1 | 2 |
Total other comprehensive income (loss) attributable to Aon shareholders | 171 | 182 | -26 | 120 |
Comprehensive income attributable to Aon shareholders | $427 | $386 | $732 | $808 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Financial Position (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $369 | $291 |
Short-term investments | 357 | 346 |
Receivables, net | 2,666 | 3,101 |
Fiduciary assets | 11,698 | 12,214 |
Other current assets | 484 | 430 |
Total Current Assets | 15,574 | 16,382 |
Goodwill | 8,958 | 8,943 |
Intangible assets, net | 2,657 | 2,975 |
Fixed assets, net | 803 | 820 |
Investments | 139 | 165 |
Other non-current assets | 1,174 | 1,201 |
TOTAL ASSETS | 29,305 | 30,486 |
CURRENT LIABILITIES | ||
Fiduciary liabilities | 11,698 | 12,214 |
Short-term debt and current portion of long-term debt | 1,206 | 452 |
Accounts payable and accrued liabilities | 1,523 | 1,853 |
Other current liabilities | 764 | 831 |
Total Current Liabilities | 15,191 | 15,350 |
Long-term debt | 3,352 | 3,713 |
Pension, other post-retirement and other post-employment liabilities | 1,773 | 2,276 |
Other non-current liabilities | 1,399 | 1,342 |
TOTAL LIABILITIES | 21,715 | 22,681 |
EQUITY | ||
Ordinary shares - $0.01 nominal value Authorized: 750 shares (issued: 2013 - 301.0; 2012 - 310.9) | 3 | 3 |
Additional paid-in capital | 4,660 | 4,436 |
Retained earnings | 5,507 | 5,933 |
Accumulated other comprehensive loss | -2,636 | -2,610 |
TOTAL AON SHAREHOLDERS’ EQUITY | 7,534 | 7,762 |
Noncontrolling interests | 56 | 43 |
TOTAL EQUITY | 7,590 | 7,805 |
TOTAL LIABILITIES AND EQUITY | $29,305 | $30,486 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Common stock, nominal or par value | $0.01 | $0.01 |
Common stock, Authorized shares | 750 | 750 |
Common stock, issued shares | 301 | 310.9 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statement of Shareholders' Equity (USD $) | Total | Ordinary Shares and Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss, Net of Tax [Member] | Non-controlling Interests [Member] |
In Millions, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2012 | $7,805 | $4,439 | $5,933 | ($2,610) | $43 |
Beginning Balance (in shares) at Dec. 31, 2012 | 310.9 | 310.9 | |||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 788 | 758 | 30 | ||
Shares issued - employee benefit plans (in shares) | 0.7 | ||||
Shares issued - employee benefit plans | 29 | 29 | |||
Shares issued - employee compensation (in shares) | 5.2 | ||||
Shares issued - employee compensation | -49 | -49 | |||
Shares purchased (in shares) | -15.8 | ||||
Shares purchased | -1,025 | -1,025 | |||
Tax benefit - employee benefit plans | 42 | 42 | |||
Share-based compensation expense | 207 | 207 | |||
Dividends to shareholders | -159 | -159 | |||
Net change in fair value of investments | -1 | -1 | |||
Net change in fair value of derivatives | -12 | -12 | |||
Net foreign currency translation adjustments | -77 | -78 | 1 | ||
Net post-retirement benefit obligation | 65 | 65 | |||
Purchase of subsidiary shares from non-controlling interests | -11 | -5 | -6 | ||
Dividends paid to non-controlling interests on subsidiary common stock | -12 | -12 | |||
Ending Balance at Sep. 30, 2013 | $7,590 | $4,663 | $5,507 | ($2,636) | $56 |
Ending Balance (in shares) at Sep. 30, 2013 | 301 | 301 |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $788 | $713 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Gain from sales of businesses and investments, net | -28 | -1 |
Depreciation of fixed assets | 177 | 168 |
Amortization of intangible assets | 296 | 313 |
Share-based compensation expense | 207 | 160 |
Deferred income taxes | 100 | 21 |
Change in assets and liabilities: | ||
Fiduciary receivables | 684 | -447 |
Short term investments - funds held on behalf of clients | -369 | 118 |
Fiduciary liabilities | -315 | 329 |
Receivables, net | 374 | 240 |
Accounts payable and accrued liabilities | -330 | -347 |
Restructuring reserves | -7 | -43 |
Current income taxes | -197 | 67 |
Pension, other post-retirement and other post-employment liabilities | -401 | -414 |
Other assets and liabilities | 5 | -10 |
CASH PROVIDED BY OPERATING ACTIVITIES | 984 | 867 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of long-term investments | 81 | 171 |
Purchases of long-term investments | -13 | -9 |
Net (purchases) sales of short-term investments - non-fiduciary | -13 | 66 |
Acquisition of businesses, net of cash acquired | -26 | -97 |
Proceeds from sale of businesses | 6 | 2 |
Capital expenditures | -174 | -201 |
CASH USED FOR INVESTING ACTIVITIES | -139 | -68 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share repurchase | -1,025 | -625 |
Issuance of shares for employee benefit plans | 84 | 93 |
Issuance of debt | 4,270 | 333 |
Repayment of debt | -3,870 | -427 |
Cash dividends to shareholders | -159 | -153 |
Purchase of shares from noncontrolling interests | -6 | 0 |
Dividends paid to noncontrolling interests | -13 | -17 |
CASH USED FOR FINANCING ACTIVITIES | -719 | -796 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -48 | 15 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 78 | 18 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 291 | 272 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 369 | 290 |
Supplemental disclosures: | ||
Interest paid | 186 | 172 |
Income taxes paid, net of refunds | $330 | $139 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited Condensed Consolidated Financial Statements and Notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Condensed Consolidated Financial Statements include the accounts of Aon plc and all controlled subsidiaries (“Aon” or the “Company”). All material 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 footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These 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, 2012. The results for the three and nine months ended September 30, 2013 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2013. | |
Use of Estimates | |
The preparation of the accompanying unaudited 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, disclosures of contingent assets and liabilities at the date of the 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, which management believes to be reasonable under the circumstances. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, and foreign currency 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 will be reflected in the financial statements in future periods. |
Accounting_Principles_and_Prac
Accounting Principles and Practices | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Accounting Principles and Practices | Accounting Principles and Practices |
Changes in Accounting Principles | |
Accumulated Other Comprehensive Income | |
In February 2013, the Financial Accounting Standards Board ("FASB") issued guidance on the disclosure of amounts to be reclassified out of accumulated other comprehensive income. The guidance requires that amounts reclassified out of accumulated other comprehensive income be presented either on the face of the statement of operations or in the notes to the financial statements by component. The guidance was effective for Aon beginning in the first quarter 2013. The adoption of this guidance did not have a material impact on the Company's Condensed Consolidated Financial Statements. | |
Indefinite-Lived Intangible Asset Impairment | |
In July 2012, the FASB issued guidance on the testing of indefinite-lived intangible assets for impairment that gives an entity the option to perform a qualitative assessment that may eliminate the requirement to perform the annual quantitative test. The guidance gives an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a an indefinite-lived intangible asset is less than its carrying amount. If an entity concludes that this is the case, it must perform the quantitative test. The guidance was effective for Aon beginning in the first quarter 2013. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements. | |
Balance Sheet Offsetting | |
In December 2011, the FASB issued guidance on the disclosure of offsetting assets and liabilities to enable users of financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS. The guidance requires certain derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and lending transactions to disclose both the gross and net position of these financial instruments. The guidance was effective for Aon beginning in the first quarter 2013. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements. |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 30, 2013 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash and cash equivalents include cash balances and all highly liquid investments with initial maturities of three months or less. Short-term investments include certificates of deposit, money market funds and highly liquid debt instruments purchased with initial maturities in excess of three months but less than one year and are carried at amortized cost, which approximates fair value. | |
The Company is required to hold £77 million of operating funds in the U.K. as required by the Financial Conduct Authority, which were included in Short-term investments. These operating funds, when translated to U.S. dollars, were $124 million at both September 30, 2013 and December 31, 2012, respectively. Cash and cash equivalents included restricted balances of $88 million and $76 million at September 30, 2013 and December 31, 2012, respectively. The restricted balances primarily relate to cash required to be held as collateral. |
Other_Income_Expense
Other Income (Expense) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Other (Expense) Income [Abstract] | ||||||||||||||||
Other Income (Expense) | Other Income (Expense) | |||||||||||||||
Other income (expense) consists of the following (in millions): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Equity earnings | $ | 6 | $ | — | $ | 12 | $ | 8 | ||||||||
Gains on investments | 37 | 9 | 36 | 11 | ||||||||||||
Foreign currency remeasurement (losses) gains | (4 | ) | (24 | ) | 15 | (24 | ) | |||||||||
Derivative gains (losses) | 1 | 8 | (8 | ) | 8 | |||||||||||
Other | (1 | ) | (2 | ) | (1 | ) | — | |||||||||
$ | 39 | $ | (9 | ) | $ | 54 | $ | 3 | ||||||||
Acquisitions_and_Dispositions
Acquisitions and Dispositions | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Combinations [Abstract] | |||||||||
Acquisitions and Dispositions | Acquisitions and Dispositions | ||||||||
Acquisitions | |||||||||
During the nine months ended September 30, 2013, the Company completed the acquisition of five businesses in the Risk Solutions segment and two businesses in the HR Solutions segment. During the nine months ended September 30, 2012, the Company completed the acquisition of two businesses in the HR Solutions segment and four businesses in the Risk Solutions segment. | |||||||||
The following table includes the aggregate consideration transferred and the preliminary value of intangible assets recorded as a result of the Company’s acquisitions: | |||||||||
Nine months ended September 30, | |||||||||
(millions) | 2013 | 2012 | |||||||
Consideration | $ | 26 | $ | 110 | |||||
Intangible assets: | |||||||||
Goodwill | $ | 26 | $ | 60 | |||||
Other intangible assets | 8 | 56 | |||||||
Total | $ | 34 | $ | 116 | |||||
The results of operations of these acquisitions are included in the Condensed Consolidated Financial Statements as of the acquisition date. The results of operations of the Company would not have been materially different if these acquisitions had been reported from the beginning of the period. | |||||||||
Dispositions | |||||||||
During the nine months ended September 30, 2013, the Company completed the sale of five businesses in the Risk Solutions segment. A pretax gain of $0.2 million was recognized on these sales, which is included in Other income (expense) in the Condensed Consolidated Statements of Income. During the nine months ended September 30, 2012, the Company completed the sale of two businesses in the Risk Solutions segment and one business in the HR Solutions segment. A pretax gain of $1 million was recognized on these sales, which is included in Other income (expense) in the Condensed Consolidated Statements of Income. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |||||||||||||||||||||||
The change in the net carrying amount of goodwill by reportable segment for the nine months ended September 30, 2013 is as follows (in millions): | ||||||||||||||||||||||||
Risk | HR | Total | ||||||||||||||||||||||
Solutions | Solutions | |||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 5,982 | $ | 2,961 | $ | 8,943 | ||||||||||||||||||
Goodwill related to current year acquisitions | 24 | 2 | 26 | |||||||||||||||||||||
Goodwill related to disposals | (3 | ) | — | (3 | ) | |||||||||||||||||||
Goodwill related to prior year acquisitions | (2 | ) | 17 | 15 | ||||||||||||||||||||
Foreign currency translation | (19 | ) | (4 | ) | (23 | ) | ||||||||||||||||||
Balance as of September 30, 2013 | $ | 5,982 | $ | 2,976 | $ | 8,958 | ||||||||||||||||||
Other intangible assets by asset class are as follows (in millions): | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated | Net Carrying Amount | Gross Carrying Amount | Accumulated | Net Carrying Amount | |||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||||||
Tradenames | $ | 1,025 | $ | — | $ | 1,025 | $ | 1,025 | $ | — | $ | 1,025 | ||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Customer related and contract based | 2,686 | 1,218 | 1,468 | 2,714 | 969 | 1,745 | ||||||||||||||||||
Marketing, technology and other (1) | 611 | 447 | 164 | 619 | 414 | 205 | ||||||||||||||||||
$ | 4,322 | $ | 1,665 | $ | 2,657 | $ | 4,358 | $ | 1,383 | $ | 2,975 | |||||||||||||
______________________________________________ | ||||||||||||||||||||||||
(1) Tradenames with finite lives disclosed separately in prior years are now presented in Marketing, technology and other | ||||||||||||||||||||||||
Amortization expense from finite lived intangible assets was $98 million and $296 million for the three and nine months ended September 30, 2013, respectively. Amortization expense from finite lived intangible assets was $105 million and $313 million for the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||||||
The estimated future amortization for finite lived intangible assets as of September 30, 2013 is as follows (in millions): | ||||||||||||||||||||||||
HR Solutions | Risk Solutions | Total | ||||||||||||||||||||||
Remainder of 2013 | $ | 70 | $ | 28 | $ | 98 | ||||||||||||||||||
2014 | 243 | 95 | 338 | |||||||||||||||||||||
2015 | 212 | 79 | 291 | |||||||||||||||||||||
2016 | 177 | 67 | 244 | |||||||||||||||||||||
2017 | 140 | 56 | 196 | |||||||||||||||||||||
Thereafter | 342 | 123 | 465 | |||||||||||||||||||||
$ | 1,184 | $ | 448 | $ | 1,632 | |||||||||||||||||||
Restructuring
Restructuring | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||
Restructuring | Restructuring | |||||||||||||||||||||||||||
Aon Hewitt Restructuring Plan | ||||||||||||||||||||||||||||
On October 14, 2010, Aon announced a global restructuring plan (“Aon Hewitt Plan”) in connection with the acquisition of Hewitt Associates, Inc. ("Hewitt"). The Aon Hewitt Plan is intended to streamline operations across the combined Aon Hewitt organization, the Health & Benefits organization and shared services and facility rationalization across the Company. The Aon Hewitt Plan includes approximately 2,900 job eliminations. The Company expects these restructuring activities and related expenses to affect operations through the end of 2013. The Aon Hewitt Plan is expected to result in cumulative costs of approximately $411 million through the end of the plan, consisting of approximately $261 million in employee termination costs and approximately $150 million in real estate rationalization costs across the Company. | ||||||||||||||||||||||||||||
From the inception of the Aon Hewitt Plan through September 30, 2013, approximately 2,660 jobs have been eliminated and total expenses of $364 million have been incurred. The Company recorded $30 million and $109 million of restructuring and related charges in the three and nine months ended September 30, 2013, respectively. The Company recorded $32 million and $57 million of restructuring and related charges in the three and nine months ended September 30, 2012, respectively. Charges related to the restructuring are included in Compensation and benefits and Other general expenses in the accompanying Condensed Consolidated Statements of Income. | ||||||||||||||||||||||||||||
The following table summarizes restructuring and related costs by type that have been incurred and are estimated to be incurred through the end of the restructuring initiative related to the Aon Hewitt Plan (in millions): | ||||||||||||||||||||||||||||
2010 | 2011 | 2012 | Third Quarter 2013 | Nine Months 2013 | Total to Date | Estimated Total Cost for Restructuring Plan (1) | ||||||||||||||||||||||
Workforce reduction | $ | 49 | $ | 64 | $ | 74 | $ | 12 | $ | 50 | $ | 237 | $ | 261 | ||||||||||||||
Lease consolidation | 3 | 32 | 18 | 17 | 53 | 106 | 128 | |||||||||||||||||||||
Asset impairments | — | 7 | 4 | — | 3 | 14 | 15 | |||||||||||||||||||||
Other costs associated with restructuring (2) | — | 2 | 2 | 1 | 3 | 7 | 7 | |||||||||||||||||||||
Total restructuring expenses | $ | 52 | $ | 105 | $ | 98 | $ | 30 | $ | 109 | $ | 364 | $ | 411 | ||||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||
-1 | Actual costs, when incurred, will vary due to changes in the assumptions built into this plan. Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives. | |||||||||||||||||||||||||||
-2 | Other costs associated with restructuring initiatives, including moving costs and consulting and legal fees, are recognized when incurred. | |||||||||||||||||||||||||||
The following table summarizes the restructuring and related expenses, by segment, that have been incurred and are estimated to be incurred through the end of the restructuring initiative related to the Aon Hewitt Plan (in millions): | ||||||||||||||||||||||||||||
2010 | 2011 | 2012 | Third Quarter 2013 | Nine Months 2013 | Total to Date | Estimated Total Cost for Restructuring Plan (1) | ||||||||||||||||||||||
HR Solutions | $ | 52 | $ | 49 | $ | 66 | $ | 6 | 57 | $ | 224 | $ | 244 | |||||||||||||||
Risk Solutions | — | 56 | 32 | 24 | 52 | 140 | 167 | |||||||||||||||||||||
Total restructuring expenses (1) | $ | 52 | $ | 105 | $ | 98 | $ | 30 | $ | 109 | $ | 364 | $ | 411 | ||||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||
(1) Costs included in the Risk Solutions segment are associated with the transfer of the health and benefits consulting business from HR Solutions to Risk Solutions effective January 1, 2012. Costs incurred in 2011 in the HR Solutions segment of $41 million related to the health and benefits consulting business have been reclassified and presented in the Risk Solutions segment. | ||||||||||||||||||||||||||||
As of September 30, 2013, the Company’s liabilities for its restructuring plans are as follows (in millions): | ||||||||||||||||||||||||||||
Aon Hewitt Plan | Aon Benfield Plan | 2007 Plan | Other | Total | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 96 | $ | 3 | $ | 35 | $ | 3 | $ | 137 | ||||||||||||||||||
Expensed | 106 | — | — | — | 106 | |||||||||||||||||||||||
Cash payments | (91 | ) | (1 | ) | (20 | ) | (1 | ) | (113 | ) | ||||||||||||||||||
Foreign exchange translation and other | 7 | — | 6 | — | 13 | |||||||||||||||||||||||
Balance at September 30, 2013 (1) | $ | 118 | $ | 2 | $ | 21 | $ | 2 | $ | 143 | ||||||||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||
(1) Included within Accounts payable and accrued liabilities and Other non-current liabilities |
Investments
Investments | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||
Investments | Investments | |||||||
The Company earns income on cash balances and investments, as well as on premium trust balances that the Company maintains for premiums collected from insureds but not yet remitted to insurance companies, and funds held under the terms of certain outsourcing agreements to pay certain obligations on behalf of clients. Premium trust balances and receivables, as well as a corresponding liability, are included in Fiduciary assets and Fiduciary liabilities in the accompanying Condensed Consolidated Statements of Financial Position. | ||||||||
The Company’s interest-bearing assets and other investments are included in the following categories in the Condensed Consolidated Statements of Financial Position (in millions): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Cash and cash equivalents | $ | 369 | $ | 291 | ||||
Short-term investments | 357 | 346 | ||||||
Fiduciary assets (1) | 4,335 | 4,029 | ||||||
Investments | 139 | 165 | ||||||
$ | 5,200 | $ | 4,831 | |||||
______________________________________________ | ||||||||
-1 | Fiduciary assets include funds held on behalf of clients but does not include fiduciary receivables. | |||||||
The Company’s investments are as follows (in millions): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Equity method investments | $ | 113 | $ | 102 | ||||
Other investments (2) | 17 | 43 | ||||||
Fixed-maturity securities (3) | 9 | 20 | ||||||
$ | 139 | $ | 165 | |||||
______________________________________________ | ||||||||
-2 | The reduction in other investments is due to the sale of certain equity securities. | |||||||
(3) The reduction in fixed-maturity securities is due to the repayment in full of a security. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | |
Debt | Debt |
The Company uses proceeds from the commercial paper market from time to time in order to meet short-term working capital needs and from time to time to retire other debt obligations. At September 30, 2013, the Company had $511 million in commercial paper outstanding as compared to $50 million of commercial paper outstanding at December 31, 2012. The increase was largely attributable to the use of commercial paper proceeds to repay the remaining balance outstanding of the term credit loan facility due October 2013. The weighted average commercial paper outstanding for the three and nine months ended September 30, 2013 was $524 million and $349 million, respectively. The weighted average interest rate of the commercial paper outstanding for the three and nine months ended September 30, 2013 was 0.33% and 0.35%, respectively. | |
During the quarter ended September 30, 2013, the €500 million ($674 million) debt securities due July 2014 were classified as Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position as the date of maturity is less than one year. | |
On March 8, 2013, the Company issued $90 million in aggregate principal amount of 4.250% Notes Due 2042. The 4.250% Notes Due 2042 constitute a further issuance of, and were consolidated to form a single series of debt securities with, the $166 million aggregate principal amount of the 4.250% Notes Due 2042 issued by Aon plc on December 12, 2012 (collectively, the "Original Notes"). The Original Notes were unconditionally guaranteed as to the payment of principal and interest by Aon Corporation. | |
On April 15, 2013, an S-4 registration statement registering $256 million in aggregate principal amount of 4.250% Notes Due 2042 (the "Exchange Notes") under the Securities Act of 1933, as amended (the "Securities Act"), was declared effective by the Securities and Exchange Commission. The Exchange Notes were exchanged for the Original Notes. The form and terms of the Exchange Notes are substantially identical in all material respects to those of the Original Notes except that the Exchange Notes are registered under the Securities Act and the transfer restrictions, registration rights and related additional interest provisions applicable to the Original Notes do not apply to the Exchange Notes. Like the Original Notes, the Exchange Notes were issued by Aon plc and unconditionally guaranteed by Aon Corporation. All Original Notes were exchanged for Exchange Notes in the second quarter 2013. | |
On April 29, 2013, the Company amended its Euro Facility agreement to add Aon plc as an additional borrower. On May 8, 2013, the Company established a multi-currency commercial paper program in aggregate principal amount of up to €650 million. Aon Corporation is a guarantor under the program. | |
On May 21, 2013, the Company issued $250 million in aggregate principal amount of 4.45% Notes Due 2043. The 4.45% Notes Due 2043 were issued by Aon plc and fully and unconditionally guaranteed by Aon Corporation. The Company used the proceeds of the issuance to repay commercial paper borrowings and for general corporate purposes. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity | |||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||
In April 2012, the Company’s Board of Directors authorized a share repurchase program under which up to $5.0 billion of Class A Ordinary Shares may be repurchased (“2012 Share Repurchase Program”). Under this program, 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. | ||||||||||||||||||||
In the third quarter of 2013, the Company repurchased 7.3 million shares at an average price per share of $68.33 for a total cost of $500 million under the 2012 Share Repurchase Program. During the nine months ended September 30, 2013, the Company repurchased 15.8 million shares at an average price per share of $64.79 for a total cost of $1.0 billion under the 2012 Share Repurchase Program. In the third quarter of 2012, the Company repurchased 5.4 million shares at an average price per share of $51.37 for a total cost of $275 million under the 2012 Share Repurchase Program. During the nine months ended September 30, 2012, the Company repurchased 12.7 million shares at an average price per share of $49.22 for a total cost of $625 million under the 2012 Share Repurchase Program and the previously completed 2010 Share Repurchase Program. The remaining authorized amount for share repurchase under the 2012 Share Repurchase Program is $3.0 billion. Since the inception of the 2012 Share Repurchase Program, the Company repurchased a total of 35.3 million shares for an aggregate cost of $2.0 billion. | ||||||||||||||||||||
Participating Securities | ||||||||||||||||||||
Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities, as defined, and therefore, should be included in computing basic and diluted earnings per share using the two class method. Certain of the Company’s restricted share awards allow the holder to receive a non-forfeitable dividend equivalent. | ||||||||||||||||||||
Income from continuing operations, income from discontinued operations and net income, attributable to participating securities, were as follows (in millions): | ||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Income from continuing operations | $ | 3 | $ | 2 | $ | 8 | $ | 8 | ||||||||||||
Income from discontinued operations | — | — | — | — | ||||||||||||||||
Net income | $ | 3 | $ | 2 | $ | 8 | $ | 8 | ||||||||||||
Weighted average shares outstanding are as follows (in millions): | ||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Shares for basic earnings per share (1) | 309.5 | 327.3 | 313.2 | 330.6 | ||||||||||||||||
Common stock equivalents | 3.4 | 3.7 | 3.5 | 3.8 | ||||||||||||||||
Shares for diluted earnings per share | 312.9 | 331 | 316.7 | 334.4 | ||||||||||||||||
______________________________________________ | ||||||||||||||||||||
(1) Includes 3.8 million and 4.5 million of participating securities for the three months ended September 30, 2013 and 2012, respectively, and 4.0 million and 4.7 million of participating securities for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||
Certain ordinary share equivalents were not included in the computation of diluted net income per share because their inclusion would have been antidilutive. There were no shares excluded from the calculation for the three and nine months ended September 30, 2013. The number of shares excluded from the calculation was 0.1 million for both the three and nine months ended September 30, 2012, 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 Investments (1) | Change in Fair Value of Derivatives (1) | Foreign Currency Translation Adjustments | Post-Retirement Benefit Obligation (2) | Total | ||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | (28 | ) | $ | 233 | $ | (2,815 | ) | $ | (2,610 | ) | |||||||
Other comprehensive income (loss) before reclassifications, net | 12 | (24 | ) | (78 | ) | (4 | ) | (94 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (20 | ) | 20 | — | 100 | 100 | ||||||||||||||
Tax benefit | 7 | (8 | ) | — | (31 | ) | (32 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net | (13 | ) | 12 | — | 69 | 68 | ||||||||||||||
Net current period other comprehensive (loss) income | (1 | ) | (12 | ) | (78 | ) | 65 | (26 | ) | |||||||||||
Balance at September 30, 2013 | $ | (1 | ) | $ | (40 | ) | $ | 155 | $ | (2,750 | ) | $ | (2,636 | ) | ||||||
______________________________________________ | ||||||||||||||||||||
(1) Reclassifications from Accumulated other comprehensive loss are recorded in Other income | ||||||||||||||||||||
(2) Reclassifications from Accumulated other comprehensive loss are recorded in Compensation and benefits |
Employee_Benefits
Employee Benefits | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Employee Benefits | Employee Benefits | |||||||||||||||
The following table provides the components of the net periodic benefit cost for Aon’s U.S. pension plans, along with its most significant international pension plans, which are located in the U.K., the Netherlands and Canada (in millions): | ||||||||||||||||
Three months ended September 30, | ||||||||||||||||
U.K. and Non-U.S. | U.S. | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 5 | $ | 4 | $ | — | $ | — | ||||||||
Interest cost | 63 | 66 | 28 | 29 | ||||||||||||
Expected return on plan assets | (89 | ) | (80 | ) | (34 | ) | (31 | ) | ||||||||
Amortization of net actuarial loss | 18 | 15 | 13 | 10 | ||||||||||||
Net periodic (benefit) cost | $ | (3 | ) | $ | 5 | $ | 7 | $ | 8 | |||||||
Nine months ended September 30, | ||||||||||||||||
U.K. and Non-U.S. | U.S. | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 14 | $ | 12 | $ | — | $ | — | ||||||||
Interest cost | 189 | 198 | 84 | 89 | ||||||||||||
Expected return on plan assets | (267 | ) | (241 | ) | (103 | ) | (95 | ) | ||||||||
Amortization of net actuarial loss | 55 | 44 | 39 | 32 | ||||||||||||
Net periodic (benefit) cost | $ | (9 | ) | $ | 13 | $ | 20 | $ | 26 | |||||||
Based on current assumptions, in 2013, Aon plans to contribute $167 million and $381 million to its U.S. and most significant international defined benefit pension plans, respectively. During the three months ended September 30, 2013, contributions of $54 million were made to the Company's U.S. pension plans and $59 million were made to its most significant international pension plans. During the nine months ended September 30, 2013, contributions of $122 million were made to the Company’s U.S. pension plans and $290 million were made to its most significant international pension plans. |
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Share-Based Compensation Plans | Share-Based Compensation Plans | |||||||||||||||
The following table summarizes share-based compensation expense recognized in the Condensed Consolidated Statements of Income in Compensation and benefits (in millions): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Restricted stock units (“RSUs”) | $ | 40 | $ | 37 | $ | 135 | $ | 120 | ||||||||
Performance share awards (“PSAs”) | 28 | 15 | 66 | 30 | ||||||||||||
Stock options | — | 1 | 1 | 4 | ||||||||||||
Employee stock purchase plans | 2 | 2 | 5 | 6 | ||||||||||||
Total stock-based compensation expense | $ | 70 | $ | 55 | $ | 207 | $ | 160 | ||||||||
Share Awards | ||||||||||||||||
A summary of the status of the Company’s RSUs is as follows (shares in thousands): | ||||||||||||||||
Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Shares | Fair Value (1) | Shares | Fair Value (1) | |||||||||||||
Non-vested at beginning of period | 10,432 | $ | 44 | 9,916 | $ | 42 | ||||||||||
Granted | 3,598 | 62 | 4,888 | 46 | ||||||||||||
Vested | (3,618 | ) | 44 | (3,343 | ) | 42 | ||||||||||
Forfeited | (308 | ) | 47 | (516 | ) | 44 | ||||||||||
Non-vested at end of period | 10,104 | 51 | 10,945 | 44 | ||||||||||||
______________________________________________ | ||||||||||||||||
-1 | Represents per share weighted average fair value of award at date of grant | |||||||||||||||
The vesting of PSAs is contingent upon meeting various individual, divisional or company-wide performance conditions, including revenue generation, or growth in revenue, pretax income or earnings per share over a one to five-year period. The performance conditions are not considered in the determination of the grant date fair value for these awards. The fair value of PSAs is based upon the market price of an Aon ordinary share at the date of grant. Compensation expense is recognized over the performance period, and in certain cases an additional vesting period, based on management's estimate of the number of units expected to vest. Compensation expense is adjusted to reflect the actual number of shares issued at the end of the programs. The actual issue of shares may range from 0-200% of the target number of PSAs granted, based on the plan. Dividend equivalents are not paid on PSAs. | ||||||||||||||||
Information as of September 30, 2013 regarding the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the nine months ended September 30, 2013 and the years ended December 31, 2012 and 2011, respectively, is as follows (shares in thousands, dollars in millions, except fair value): | ||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | As of December 31, 2011 | ||||||||||||||
Target PSAs granted | 1,135 | 1,369 | 1,715 | |||||||||||||
Fair value (1) | $ | 58 | $ | 47 | $ | 50 | ||||||||||
Number of shares that would be issued based on current performance levels | 1,135 | 2,232 | 1,386 | |||||||||||||
Unamortized expense, based on current performance levels | $ | 53 | $ | 46 | $ | 5 | ||||||||||
______________________________________________ | ||||||||||||||||
-1 | Represents per share weighted average fair value of award at date of grant. | |||||||||||||||
Share Options | ||||||||||||||||
The Company did not grant any share options during the nine months ended September 30, 2013 or 2012, respectively. | ||||||||||||||||
A summary of the status of the Company’s share options and related information is as follows (shares in thousands): | ||||||||||||||||
Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Shares | Weighted- Average | Shares | Weighted- Average | |||||||||||||
Exercise Price | Exercise Price | |||||||||||||||
Beginning outstanding | 5,611 | $ | 32 | 9,116 | $ | 32 | ||||||||||
Granted | — | — | — | |||||||||||||
Exercised | (1,694 | ) | 32 | (2,570 | ) | 31 | ||||||||||
Forfeited and expired | (29 | ) | 34 | (67 | ) | 37 | ||||||||||
Outstanding at end of period | 3,888 | 32 | 6,479 | 32 | ||||||||||||
Exercisable at end of period | 3,681 | 32 | 5,969 | 31 | ||||||||||||
The weighted average remaining contractual life, in years, of outstanding options was 2.2 years and 2.8 years at September 30, 2013 and 2012, respectively. | ||||||||||||||||
The aggregate intrinsic value represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s closing stock price of $74.44 as of September 30, 2013, which would have been received by the option holders had those option holders exercised their options as of that date. At September 30, 2013, the aggregate intrinsic value of options outstanding was $163 million, of which $156 million was exercisable. | ||||||||||||||||
Other information related to the Company’s share options is as follows (in millions): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Aggregate intrinsic value of stock options exercised | $ | 14 | $ | 23 | $ | 53 | $ | 47 | ||||||||
Cash received from the exercise of stock options | 14 | 29 | 55 | 80 | ||||||||||||
Tax benefit realized from the exercise of stock options | 3 | 5 | 10 | 8 | ||||||||||||
Unamortized deferred compensation expense, which includes both options and awards, amounted to $373 million as of September 30, 2013, with a remaining weighted-average amortization period of approximately 2.1 years. |
Derivatives_and_Hedging
Derivatives and Hedging | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Derivatives and Hedging | Derivatives and Hedging | |||||||||||||||||||||||||||||||
The Company is exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, the Company enters into various derivative instruments that reduce these risks by creating offsetting exposures. The Company does not enter into derivative transactions for trading or speculative purposes. | ||||||||||||||||||||||||||||||||
Foreign Exchange Risk Management | ||||||||||||||||||||||||||||||||
The Company is exposed to foreign exchange risk when it receives revenues, pays expenses, or enters into intercompany loans denominated in a currency that differs from its functional currency, or other transactions that are denominated in a currency other than its functional currency. The Company uses foreign exchange derivatives, typically forward contracts, options and cross currency swaps, to reduce its overall exposure to the effects of currency fluctuations on cash flows. These exposures are hedged, on average, for less than two years; however, in limited instances, the Company has hedged certain exposures up to five years in the future. | ||||||||||||||||||||||||||||||||
The Company also uses foreign exchange derivatives, typically forward contracts and options, to hedge its net investments in foreign operations for up to two years in the future. | ||||||||||||||||||||||||||||||||
The Company also uses foreign exchange derivatives, typically forward contracts and options, to manage the currency exposure of the Company’s global liquidity profile, including monetary assets or liabilities that are denominated in a non-functional currency of an entity, for up to one year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income in the Condensed Consolidated Statements of Income. | ||||||||||||||||||||||||||||||||
Interest Rate Risk Management | ||||||||||||||||||||||||||||||||
The Company holds variable-rate short-term brokerage and other operating deposits. The Company uses interest rate derivatives, typically swaps, to reduce its exposure to the effects of interest rate fluctuations on the forecasted interest receipts from these deposits for up to two years in the future. | ||||||||||||||||||||||||||||||||
Certain derivatives also give rise to credit risks from the possible non-performance by counterparties. The credit risk at the balance sheet date is generally limited to the fair value of those contracts that are favorable to the Company. The Company has reduced its credit risk by using International Swaps and Derivatives Association (“ISDA”) master agreements, collateral and credit support arrangements, entering into non-exchange-traded derivatives with highly-rated major financial institutions and by using exchange-traded instruments. The Company monitors the creditworthiness of, and exposure to, its counterparties. As of September 30, 2013, all net derivative positions were free of credit risk contingent features. The Company has not received or pledged any collateral related to derivative arrangements as of September 30, 2013. | ||||||||||||||||||||||||||||||||
The notional and fair values of derivative instruments are as follows (in millions): | ||||||||||||||||||||||||||||||||
Notional Amount | Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Derivatives accounted for as hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 169 | $ | 336 | $ | 8 | $ | 17 | $ | — | $ | — | ||||||||||||||||||||
Foreign exchange contracts | 1,159 | 1,208 | 56 | 191 | 112 | 250 | ||||||||||||||||||||||||||
Total | 1,328 | 1,544 | 64 | 208 | 112 | 250 | ||||||||||||||||||||||||||
Derivatives not accounted for as hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | 267 | 305 | 1 | 2 | 1 | 1 | ||||||||||||||||||||||||||
Total | $ | 1,595 | $ | 1,849 | $ | 65 | $ | 210 | $ | 113 | $ | 251 | ||||||||||||||||||||
Offsetting of financial assets and derivatives assets are as follows (in millions): | ||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets Presented in the Statement of Financial Position (1) | ||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Derivatives accounted for as hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 8 | $ | 17 | $ | — | $ | — | $ | 8 | $ | 17 | ||||||||||||||||||||
Foreign exchange contracts | 56 | 191 | (25 | ) | (160 | ) | 31 | 31 | ||||||||||||||||||||||||
Total | 64 | 208 | (25 | ) | (160 | ) | 39 | 48 | ||||||||||||||||||||||||
Derivatives not accounted for as hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | 1 | 2 | (1 | ) | — | — | 2 | |||||||||||||||||||||||||
Total | $ | 65 | $ | 210 | $ | (26 | ) | $ | (160 | ) | $ | 39 | $ | 50 | ||||||||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||||||
(1) Included within Other current assets or Other non-current assets | ||||||||||||||||||||||||||||||||
Offsetting of financial liabilities and derivative liabilities are as follows (in millions): | ||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Liabilities Presented in the Statement of Financial Position (2) | ||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Derivatives accounted for as hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Foreign exchange contracts | 112 | 250 | (25 | ) | (160 | ) | 87 | 90 | ||||||||||||||||||||||||
Total | 112 | 250 | (25 | ) | (160 | ) | 87 | 90 | ||||||||||||||||||||||||
Derivatives not accounted for as hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | 1 | 1 | (1 | ) | — | — | 1 | |||||||||||||||||||||||||
Total | $ | 113 | $ | 251 | $ | (26 | ) | $ | (160 | ) | $ | 87 | $ | 91 | ||||||||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||||||
(2) Included within Other current liabilities or Other non-current liabilities | ||||||||||||||||||||||||||||||||
The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2013 and 2012 are as follows (in millions): | ||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Gain (Loss) recognized in Accumulated Other Comprehensive Loss: | ||||||||||||||||||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Foreign exchange contracts | — | 16 | (28 | ) | (14 | ) | ||||||||||||||||||||||||||
Total | $ | — | $ | 16 | $ | (28 | ) | $ | (14 | ) | ||||||||||||||||||||||
Foreign Net Investment Hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | — | $ | 3 | $ | — | $ | 4 | ||||||||||||||||||||||||
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | ||||||||||||||||||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts (1) | $ | — | $ | — | $ | (1 | ) | $ | — | |||||||||||||||||||||||
Foreign exchange contracts (2) | (10 | ) | (7 | ) | (7 | ) | (23 | ) | ||||||||||||||||||||||||
Total | (10 | ) | (7 | ) | (8 | ) | (23 | ) | ||||||||||||||||||||||||
Foreign Net Investment Hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||||||
(1) Included within Fiduciary investment income and Interest expense | ||||||||||||||||||||||||||||||||
(2) Included within Other income (expense) and Interest expense | ||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivative (1) (2) | Amount of Gain (Loss) Recognized in Income on Related Hedge Item (2) | Amount of Gain (Loss) Recognized in Income on Derivative (1) (2) | Amount of Gain (Loss) Recognized in Income on Related Hedge Item (1) (2) | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | (7 | ) | $ | (3 | ) | $ | 7 | $ | 3 | $ | (8 | ) | $ | — | $ | 8 | $ | — | |||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||||||
(1) Relates to fixed rate debt | ||||||||||||||||||||||||||||||||
(2) Included in Interest expense | ||||||||||||||||||||||||||||||||
The Company estimates that approximately $27 million of pretax losses currently included within Accumulated other comprehensive loss will be reclassified into earnings in the next twelve months. | ||||||||||||||||||||||||||||||||
The amount of gain (loss) recognized in income on the ineffective portion of derivatives for the three and nine months ended September 30, 2013 and 2012 was not material. | ||||||||||||||||||||||||||||||||
During the three and nine months ended September 30, 2013, the Company recorded a gain of $3 million and a loss of $15 million, respectively, in Other income (expense) for foreign exchange derivatives not designated or qualifying as hedges. During the three and nine months ended September 30, 2012, the Company recorded a gain of $6 million and $12 million, respectively, in Other income (expense) for foreign exchange derivatives not designated or qualifying as hedges. |
Fair_Value_and_Financial_Instr
Fair Value and Financial Instruments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value and Financial Instruments | Fair Value and Financial Instruments | |||||||||||||||
Accounting standards establish a three tier fair value hierarchy that prioritizes the inputs used in measuring fair values as follows: | ||||||||||||||||
• | Level 1 — observable inputs such as quoted prices for identical assets in active markets; | |||||||||||||||
• | Level 2 — inputs other than quoted prices for identical assets in active markets, that are observable either directly or indirectly; and | |||||||||||||||
• | Level 3 — unobservable inputs in which there is little or no market data which requires the use of valuation techniques and the development of assumptions. | |||||||||||||||
The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments: | ||||||||||||||||
Money market funds and highly liquid debt securities are carried at cost and amortized cost, respectively, as an approximation of fair value. Based on market convention, the Company considers cost a practical and expedient measure of fair value. | ||||||||||||||||
Cash, cash equivalents, and highly liquid debt instruments consist of cash and institutional short-term investment funds. The Company independently reviews the short-term investment funds to obtain reasonable assurance the fund net asset value is $1 per share. | ||||||||||||||||
Equity investments consist of domestic and international equity securities and exchange traded equity derivatives valued using the closing stock price on a national securities exchange. Over the counter equity derivatives are valued using observable inputs such as underlying prices of the equity security and volatility. The Company independently reviews the listing of Level 1 equity securities in the portfolio and agrees the closing stock prices to a national securities exchange, and on a sample basis, independently verifies the observable inputs for Level 2 equity derivatives and securities. | ||||||||||||||||
Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using discounted cash flow models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains a detailed understanding of the models, inputs, and assumptions used in developing prices provided by its vendors. This understanding includes discussions with valuation resources at the vendor. During these discussions, the Company uses a fair value measurement questionnaire, which is part of the Company’s internal controls over financial reporting, to obtain the information necessary to assert the model, inputs and assumptions used comply with U.S. GAAP, including disclosure requirements. The Company also obtains observable inputs from the pricing vendor and independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on the Company’s guidelines, it is then reviewed by a member of management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and have not historically been material to the fair value estimates used in the Condensed Consolidated Financial Statements. | ||||||||||||||||
Pooled funds consist of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles. Pooled investment funds fair value is estimated based on the proportionate share ownership in the underlying net assets of the investment, which is based on the fair value of the underlying securities that trade on a national securities exchange. Where possible, the Company independently reviews the listing securities in the portfolio and agrees the closing stock prices to a national securities exchange. The Company gains an understanding of the investment guidelines and valuation policies of the fund and discusses fund performance with pooled fund managers. The Company obtains audited fund manager financial statements, when available. If the pooled fund is designed to replicate a publicly traded index, the Company compares the performance of the fund to the index to assess the reasonableness of the fair value measurement. | ||||||||||||||||
Alternative investments consist of limited partnerships, private equity and hedge funds. Alternative investment fair value is generally estimated based on the proportionate share ownership in the underlying net assets of the investment as determined by the general partner or investment manager. The valuations are based on various factors depending on investment strategy, proprietary models, and specific financial data or projections. The Company obtains audited fund manager financial statements, when available. The Company obtains a detailed understanding of the models, inputs and assumptions used in developing prices provided by the investment managers (or appropriate party) through regular discussions. During these discussions with the investment managers, the Company uses a fair value measurement questionnaire, which is part of the Company’s internal controls over financial reporting, to obtain the information necessary to assert the model, inputs and assumptions used comply with U.S. GAAP, including disclosure requirements. The Company also obtains observable inputs from the investment manager and independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on the Company’s guidelines, it is then reviewed by a member of management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and have not historically been material to the fair value estimates in the Condensed Consolidated Financial Statements. | ||||||||||||||||
Derivatives are carried at fair value, based upon industry standard valuation techniques that use, where possible, current market-based or independently sourced pricing inputs, such as interest rates, currency exchange rates, or implied volatilities. | ||||||||||||||||
Annuity contracts consist of insurance group annuity contracts purchased to match the pension benefit payment stream owed to certain selected plan participant demographics within a few major United Kingdom defined benefit plans. Annuity contracts are valued using a discounted cash flow model utilizing assumptions such as discount rate, mortality, and inflation. The Company independently verifies the observable inputs. | ||||||||||||||||
Real estate and REITs consist of publicly traded REITs and direct real estate investments. Level 1 REITs are valued using the closing stock price on a national securities exchange. The Level 3 values are based on the proportionate share of ownership in the underlying net asset value as determined by the investment manager. The Company independently reviews the listing of Level 1 REIT securities in the portfolio and agrees the closing stock prices to a national securities exchange. The Company gains an understanding of the investment guidelines and valuation policies of the Level 3 real estate funds and discusses performance with the fund managers. The Company obtains audited fund manager financial statements, when available. See the description of “Alternative investments” for further detail on valuation procedures surrounding Level 3 REITs. | ||||||||||||||||
Guarantees are carried at fair value, which is based on discounted estimated cash flows using published historical cumulative default rates and discount rates commensurate with the underlying exposure. | ||||||||||||||||
Debt is carried at outstanding principal balance, less any unamortized discount or premium. Fair value is based on quoted market prices or estimates using discounted cash flow analyses based on current borrowing rates for similar types of borrowing arrangements. | ||||||||||||||||
The following tables present the categorization of the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2013 and December 31, 2012 (in millions): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance at September 30, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Money market funds and highly liquid debt securities (1) | $ | 2,098 | $ | 2,073 | $ | 25 | $ | — | ||||||||
Other investments: | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Corporate bonds | 2 | — | — | 2 | ||||||||||||
Government bonds | 7 | — | 7 | — | ||||||||||||
Equity securities | 9 | 5 | 4 | — | ||||||||||||
Derivatives: | ||||||||||||||||
Interest rate contracts | 8 | — | 8 | — | ||||||||||||
Foreign exchange contracts | 57 | — | 57 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Derivatives: | ||||||||||||||||
Foreign exchange contracts | 113 | — | 113 | — | ||||||||||||
______________________________________________ | ||||||||||||||||
(1) Includes $2,073 million of money market funds and $25 million of highly liquid debt securities that are classified as Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. See Note 8 “Investments” for additional information regarding the Company’s investments. | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance at December 31, 2012 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Money market funds and highly liquid debt securities (1) | $ | 2,133 | $ | 2,108 | $ | 25 | $ | — | ||||||||
Other investments: | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Corporate bonds | 12 | — | — | 12 | ||||||||||||
Government Bonds | 8 | — | 8 | — | ||||||||||||
Equity securities | 5 | 5 | — | — | ||||||||||||
Derivatives: | ||||||||||||||||
Interest rate contracts | 17 | — | 17 | — | ||||||||||||
Foreign exchange contracts | 193 | — | 193 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Derivatives: | ||||||||||||||||
Foreign exchange contracts | 251 | — | 251 | — | ||||||||||||
______________________________________________ | ||||||||||||||||
(1) Includes $2,108 million of money market funds and $25 million of highly liquid debt securities that are classified as Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. See Note 8 “Investments” for additional information regarding the Company’s investments. | ||||||||||||||||
There were no transfers of assets or liabilities between fair value hierarchy levels in the three and nine months ended September 30, 2013 and 2012, respectively. The Company recognized $6 million of realized gains and no unrealized gains during the three and nine months ended September 30, 2013, respectively, related to assets and liabilities measured at fair value using unobservable inputs. There were no realized or unrealized gains or losses recognized in the Condensed Consolidated Statements of Income or Financial Position during either the three or nine months ended September 30, 2012 related to assets and liabilities measured at fair value using unobservable inputs. | ||||||||||||||||
The fair value of all long-term debt instruments is classified as Level 2. The following table discloses the Company’s financial instruments where the carrying amounts and fair values differ (in millions): | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Long-term debt | $ | 3,352 | $ | 3,583 | $ | 3,713 | $ | 4,162 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Legal | |
Aon and its subsidiaries are subject to numerous claims, tax assessments, lawsuits and proceedings that arise in the ordinary course of business, which frequently include errors and omissions (“E&O”) claims. The damages claimed in these matters are or may be substantial, including, in many instances, claims for punitive, treble or extraordinary damages. Aon has historically purchased E&O insurance and other insurance to provide protection against certain losses that arise in such matters. Aon has exhausted or materially depleted its coverage under some of the policies that protect the Company and, consequently, is self-insured or materially self-insured for some historical claims. Accruals for these exposures, and related insurance receivables, when applicable, have been provided to the extent that losses are deemed probable and are reasonably estimable. These amounts are adjusted from time to time as developments warrant. Amounts related to settlement provisions are recorded in Other general expenses in the Condensed Consolidated Statements of Income. | |
A retail insurance brokerage subsidiary of Aon provides insurance brokerage services to Northrop Grumman Corporation (“Northrop”). This Aon subsidiary placed Northrop’s excess property insurance program for the period covering 2005. Northrop suffered a substantial loss in August 2005 when Hurricane Katrina damaged Northrop’s facilities in the Gulf states. Northrop’s excess insurance carrier, Factory Mutual Insurance Company (“Factory Mutual”), denied coverage for the claim pursuant to a flood exclusion. Northrop sued Factory Mutual in the United States District Court for the Central District of California and later sought to add this Aon subsidiary as a defendant, asserting that if Northrop’s policy with Factory Mutual does not cover the losses suffered by Northrop stemming from Hurricane Katrina, then this Aon subsidiary will be responsible for Northrop’s losses. On August 26, 2010, the court granted in large part Factory Mutual’s motion for partial summary judgment regarding the applicability of the flood exclusion and denied Northrop’s motion to add this Aon subsidiary as a defendant in the federal lawsuit. On January 27, 2011, Northrop filed suit against this Aon subsidiary in state court in Los Angeles, California, pleading claims for negligence, breach of contract and negligent misrepresentation. Northrop has since settled with Factory Mutual. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims. The outcome of this lawsuit, and the amount of any losses or other payments that may result, cannot be estimated at this time. | |
Another retail insurance brokerage subsidiary of Aon has been sued in Tennessee state court by a client, Opry Mills Mall Limited Partnership (“Opry Mills”) that sustained flood damage to its property in May 2010. The lawsuit seeks $200 million from numerous insurers with whom this Aon subsidiary placed the client’s property insurance coverage. The insurers contend that only $50 million in coverage is available for the loss because the flood event occurred on property in a high hazard flood zone. Opry Mills is seeking full coverage from the insurers for the loss and has sued this Aon subsidiary in the alternative for the same $150 million difference on various theories of professional liability if the court determines there is not full coverage. In addition, Opry Mills seeks prejudgment interest, attorneys' fees and enhanced damages which could substantially increase Aon's exposure. Aon believes it has meritorious defenses and intends to vigorously defend itself against these claims. The outcome of this lawsuit, and the amount of any losses or other payments that may result, cannot be estimated at this time. | |
A pensions consulting and administration subsidiary of Hewitt prior to its acquisition by Aon provided advisory services to the Trustees of the Philips UK pension fund and the relevant employer of fund beneficiaries (together, “Philips”). In December 2011, the Aon subsidiary received notice of a potential claim alleging negligence and breach of duty. The notice asserts Philips’ right to claim damages related to Philips’ use of a credit default swap hedging strategy pursuant to the supply of the advisory services, which is said to have resulted in substantial damages to Philips. No lawsuit has yet been filed. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these allegations. The outcome of this circumstance, and the amount of any losses or other payments that may result, cannot be estimated at this time. | |
Mazeikiu Nafta ("MN"), which operates an oil refinery in Lithuania, has sued an insurance brokerage subsidiary of Aon in London. Aon placed property damage and business interruption coverage for MN. There was a fire at the refinery in 2006. MN settled with insurers in November 2011 and claimed against Aon in December 2012. The claim is for $125 million, which is the shortfall alleged by MN to have been caused by Aon's failure to obtain appropriate business interruption coverage. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these allegations. The outcome of this lawsuit, and the amount of any losses or other payments that may result, cannot be estimated at this time. | |
From time to time, Aon’s clients may bring claims and take legal action pertaining to the performance of fiduciary responsibilities. Whether client claims and legal action related to the Company’s performance of fiduciary responsibilities are founded or unfounded, if such claims and legal actions are resolved in a manner unfavorable to the Company, they may adversely affect Aon’s financial results and materially impair the market perception of the Company and that of its products and services. | |
Although the ultimate outcome of all matters referred to above cannot be ascertained, and liabilities in indeterminate amounts may be imposed on Aon or its subsidiaries, on the basis of present information, amounts already provided, availability of insurance coverages and legal advice received, it is the opinion of management that the disposition or ultimate determination of such claims will not have a material adverse effect on the consolidated financial position of Aon. However, it is possible that future results of operations or cash flows for any particular quarterly or annual period could be materially affected by an unfavorable resolution of these matters. | |
Guarantees and Indemnifications | |
In connection with the redomicile of Aon's headquarters ("the Redomestication"), the Company on April 2, 2012 entered various agreements pursuant to which it agreed to guarantee the obligations of its subsidiaries arising under issued and outstanding debt securities. Those agreements included the (1) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc, and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) (amending and restating the Indenture, dated as of September 10, 2010, between Aon Corporation and the Trustee), (2) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and the Trustee (amending and restating the Indenture, dated as of December 16, 2002, between Aon Corporation and the Trustee), (3) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and the Trustee (amending and restating the Indenture, dated as of January 13, 1997, as supplemented by the First Supplemental Indenture, dated as of January 13, 1997) (4) First Supplemental Indenture, dated as of April 2, 2012, among Aon Finance N.S. 1, ULC, as issuer, Aon Corporation, as guarantor, Aon plc, as guarantor, and Computershare Trust Company of Canada, as trustee, and (5) Amended and Restated Trust Deed, among Aon Corporation, Aon plc, Aon Services Luxembourg & Co S.C.A. (formerly known as Aon Financial Services Luxembourg S.A.) (“Aon Luxembourg”) and BNY Mellon Corporate Trustee Services Limited, as trustee (the “Luxembourg Trustee”) (amending and restating the Trust Deed, dated as of July 1, 2009, as amended and restated on January 12, 2011, among Aon Delaware, Aon Luxembourg and the Luxembourg Trustee). | |
Effective as of the same date, the Company also entered into agreements pursuant to which it agreed to guarantee the obligations of its subsidiaries arising under the (1) $450,000,000 Term Credit Agreement dated June 15, 2011, among Aon Corporation, as borrower, Bank of America, N.A., as administrative agent and the other agents and lenders party thereto, (2) $400,000,000 Five-Year Agreement dated March 20, 2012, among Aon Corporation, as borrower, Citibank, N.A., as administrative agent and the other agents and lenders party thereto and (3) €650,000,000 Facility Agreement, dated October 15, 2010, among Aon Corporation, the subsidiaries of Aon Corporation party thereto as borrowers, Citibank International plc, as agent, and the other agents and lenders party thereto, as amended on July 18, 2011. | |
The Company provides a variety of guarantees and indemnifications to its customers and others. The maximum potential amount of future payments represents the notional amounts that could become payable under the guarantees and indemnifications if there were a total default by the guaranteed parties, without consideration of possible recoveries under recourse provisions or other methods. These amounts may bear no relationship to the expected future payments, if any, for these guarantees and indemnifications. Any anticipated amounts payable that are deemed to be probable and reasonably estimable are included in the Company’s Condensed Consolidated Financial Statements. | |
The Company expects that, as prudent business interests dictate, additional guarantees and indemnifications may be issued from time to time. | |
Letters of Credit | |
The Company had total letters of credit (“LOCs”) outstanding for approximately $71 million at September 30, 2013, as compared to $74 million at December 31, 2012. These letters of credit cover the beneficiaries related to certain of Aon’s U.S. and Canadian non-qualified pension plan schemes and secure deductible retentions for Aon’s own workers compensation program. The Company has also issued LOCs to cover contingent payments for taxes and other business obligations to third parties, and other guarantees for miscellaneous purposes at its international subsidiaries. Amounts are accrued in the Condensed Consolidated Financial Statements to the extent the guarantees are probable and estimable. | |
Commitments | |
The Company has provided commitments to fund certain limited partnerships in which it has an interest in the event that the general partners request funding. Some of these commitments have specific expiration dates and the maximum potential funding under these commitments was $35 million at September 30, 2013. During the three and nine months ended September 30, 2013, the Company funded $7 million and $13 million, respectively of these commitments. | |
Premium Payments | |
The Company has certain contractual contingent guarantees for premium payments owed by clients to certain insurance companies. Costs associated with these guarantees, to the extent estimable and probable, are provided in Aon’s allowance for doubtful accounts. The maximum exposure with respect to such contractual contingent guarantees was approximately $81 million at September 30, 2013 as compared to $104 million at December 31, 2012. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Segment Information | |||||||||||||||
The Company has two reportable segments: Risk Solutions and HR Solutions. Unallocated income and expenses, when combined with the operating segments and after the elimination of intersegment revenues and expenses, equal the amounts in the Condensed Consolidated Financial Statements. | ||||||||||||||||
Reportable operating segments have been determined using a management approach, which is consistent with the basis and manner in which Aon’s chief operating decision-maker (“CODM”) uses financial information for the purposes of allocating resources and evaluating performance. The CODM assesses performance based on operating income and generally accounts for inter-segment revenue as if the revenue were from third parties and at what management believes are current market prices. The Company does not present net assets by segment as this information is not reviewed by the CODM. | ||||||||||||||||
Risk Solutions acts as an advisor and insurance and reinsurance broker, helping clients manage their risks, via consultation, as well as negotiation and placement of insurance risk with insurance carriers through Aon’s global distribution network. | ||||||||||||||||
HR Solutions partners with organizations to solve their most complex benefits, talent and related financial challenges, and improve business performance by designing, implementing, communicating and administering a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies. | ||||||||||||||||
Aon’s total revenue is as follows (in millions): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Risk Solutions | $ | 1,821 | $ | 1,778 | $ | 5,736 | $ | 5,582 | ||||||||
HR Solutions | 981 | 971 | 2,891 | 2,847 | ||||||||||||
Intersegment elimination | (8 | ) | (12 | ) | (21 | ) | (30 | ) | ||||||||
Total revenue | $ | 2,794 | $ | 2,737 | $ | 8,606 | $ | 8,399 | ||||||||
Commissions, fees and other revenues by product are as follows (in millions): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Retail brokerage | $ | 1,424 | $ | 1,390 | $ | 4,548 | $ | 4,395 | ||||||||
Reinsurance brokerage | 389 | 377 | 1,167 | 1,156 | ||||||||||||
Total Risk Solutions Segment | 1,813 | 1,767 | 5,715 | 5,551 | ||||||||||||
Consulting services | 406 | 394 | 1,176 | 1,140 | ||||||||||||
Outsourcing | 587 | 585 | 1,746 | 1,723 | ||||||||||||
Intrasegment | (12 | ) | (8 | ) | (31 | ) | (16 | ) | ||||||||
Total HR Solutions Segment | 981 | 971 | 2,891 | 2,847 | ||||||||||||
Intersegment | (8 | ) | (12 | ) | (21 | ) | (30 | ) | ||||||||
Total commissions, fees and other revenue | $ | 2,786 | $ | 2,726 | $ | 8,585 | $ | 8,368 | ||||||||
Fiduciary investment income by segment is as follows (in millions): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Risk Solutions | $ | 8 | $ | 11 | $ | 21 | $ | 31 | ||||||||
HR Solutions | — | — | — | — | ||||||||||||
Total fiduciary investment income | $ | 8 | $ | 11 | $ | 21 | $ | 31 | ||||||||
A reconciliation of segment operating income before tax to income before income taxes is as follows (in millions): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Risk Solutions | $ | 333 | $ | 309 | $ | 1,127 | $ | 1,059 | ||||||||
HR Solutions | 75 | 80 | 162 | 211 | ||||||||||||
Segment income before income taxes | 408 | 389 | 1,289 | 1,270 | ||||||||||||
Unallocated expenses | (44 | ) | (50 | ) | (133 | ) | (135 | ) | ||||||||
Interest income | 3 | 1 | 6 | 6 | ||||||||||||
Interest expense | (53 | ) | (57 | ) | (153 | ) | (173 | ) | ||||||||
Other income (expense) | 39 | (9 | ) | 54 | 3 | |||||||||||
Income before income taxes | $ | 353 | $ | 274 | $ | 1,063 | $ | 971 | ||||||||
Unallocated expenses include administrative or other costs not attributable to the operating segments, such as corporate governance costs. Interest income represents income earned primarily on operating cash balances and certain income producing securities. Interest expense represents the cost of worldwide debt obligations. | ||||||||||||||||
Other income consists of equity earnings, realized gains or losses on the sale of investments, gains or losses on the disposal of businesses, gains or losses on derivatives, and gains or losses on foreign currency transactions. |
Guarantee_of_Registered_Securi
Guarantee of Registered Securities | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Guarantee of Registered Securities [Abstract] | |||||||||||||||||||||
Guarantee of Registered Securities | Guarantee of Registered Securities | ||||||||||||||||||||
As described in Note 15, in connection with the Redomestication, Aon plc entered into various agreements pursuant to which it agreed to guarantee the obligations of Aon Corporation arising under issued and outstanding debt securities. Aon Corporation is a 100% directly owned subsidiary of Aon plc. The debt securities that are subject to Rule 3-10 of Regulation S-X are the 3.50% senior notes due September 2015, the 3.125% senior notes due May 2016, the 5.00% senior notes due September 2020, the 8.205% junior subordinated deferrable interest debentures due January 2027 and the 6.25% senior notes due September 2040. All guarantees of Aon plc are full and unconditional. There are no other subsidiaries of Aon plc that are guarantors of the debt. | |||||||||||||||||||||
Aon Corporation entered into an agreement pursuant to which it agreed to guarantee the obligations of Aon plc arising under the 4.250% Notes Due 2042 exchanged for Aon Corporation's outstanding 8.205% junior subordinated deferrable interest debentures due January 2027 in both Original Notes and Exchange Notes form as described in Note 9. Those notes are subject to Rule 3-10 of Regulation S-X. Aon Corporation also agreed to guarantee the obligations of Aon plc arising under the 4.45% Notes Due 2043 issued on May 21, 2013. In each case, the guarantee of Aon Corporation is full and unconditional. There are no subsidiaries of Aon plc, other than Aon Corporation, that are guarantors of the 4.250% Notes Due 2042 or the 4.45% Notes Due 2043. | |||||||||||||||||||||
The following tables set forth condensed consolidating statements of income for the three and nine months ended September 30, 2013 and 2012, condensed consolidating statements of comprehensive income for the three and nine months ended September 30, 2013 and 2012, condensed consolidating statements of financial position as of September 30, 2013 and December 31, 2012, and condensed consolidating statements of cash flows for the nine months ended September 30, 2013 and 2012 in accordance with Rule 3-10 of Regulation S-X. The condensed consolidating financial information includes the accounts of Aon plc, the accounts of Aon Corporation, and the combined accounts of the non-guarantor subsidiaries. The condensed consolidating financial statements are presented in all periods as a merger under common control, with Aon plc presented as the parent company in all periods prior and subsequent to the Redomestication. The principal consolidating adjustments are to eliminate the investment in subsidiaries and intercompany balances and transactions. | |||||||||||||||||||||
In July 2013, Aon Holdings LLC, an intermediate holding company and the direct parent of Aon Corporation, transferred its ownership of Aon Corporation to Aon plc via distribution. The financial results of Aon Holdings LLC were included in the Other Non-Guarantor Subsidiaries column of the Condensed Consolidating Financial Statements. The Company has reflected the transfer of Aon Corporation from Aon Holdings LLC to Aon plc below for all periods presented. | |||||||||||||||||||||
Condensed Consolidating Statement of Income | |||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Revenue | |||||||||||||||||||||
Commissions, fees and other | $ | 1 | $ | — | $ | 2,785 | $ | — | $ | 2,786 | |||||||||||
Fiduciary investment income | — | — | 8 | — | 8 | ||||||||||||||||
Total revenue | 1 | — | 2,793 | — | 2,794 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | 11 | 14 | 1,641 | — | 1,666 | ||||||||||||||||
Other general expenses | — | 5 | 759 | — | 764 | ||||||||||||||||
Total operating expenses | 11 | 19 | 2,400 | — | 2,430 | ||||||||||||||||
Operating (loss) income | (10 | ) | (19 | ) | 393 | — | 364 | ||||||||||||||
Interest income | — | 1 | 2 | — | 3 | ||||||||||||||||
Interest expense | (6 | ) | (39 | ) | (8 | ) | — | (53 | ) | ||||||||||||
Intercompany interest income (expense) | 25 | 11 | (36 | ) | — | — | |||||||||||||||
Other income | — | 13 | 26 | — | 39 | ||||||||||||||||
Income (loss) from continuing operations before taxes | 9 | (33 | ) | 377 | — | 353 | |||||||||||||||
Income tax (benefit) expense | (2 | ) | (14 | ) | 105 | — | 89 | ||||||||||||||
Income (loss) from continuing operations | 11 | (19 | ) | 272 | — | 264 | |||||||||||||||
Loss from discontinued operations before taxes | — | — | — | — | — | ||||||||||||||||
Income taxes | — | — | — | — | — | ||||||||||||||||
Loss from discontinued operations | — | — | — | — | — | ||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 245 | 127 | — | (372 | ) | — | |||||||||||||||
Net income | 256 | 108 | 272 | (372 | ) | 264 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 8 | — | 8 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 256 | $ | 108 | $ | 264 | $ | (372 | ) | $ | 256 | ||||||||||
Condensed Consolidating Statement of Income | |||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Revenue | |||||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 2,726 | $ | — | $ | 2,726 | |||||||||||
Fiduciary investment income | — | — | 11 | — | 11 | ||||||||||||||||
Total revenue | — | — | 2,737 | — | 2,737 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | 4 | (5 | ) | 1,621 | — | 1,620 | |||||||||||||||
Other general expenses | 19 | 6 | 753 | — | 778 | ||||||||||||||||
Total operating expenses | 23 | 1 | 2,374 | — | 2,398 | ||||||||||||||||
Operating (loss) income | (23 | ) | (1 | ) | 363 | — | 339 | ||||||||||||||
Interest income | — | — | 1 | — | 1 | ||||||||||||||||
Interest expense | — | (45 | ) | (12 | ) | — | (57 | ) | |||||||||||||
Intercompany interest (expense) income | (8 | ) | 48 | (40 | ) | — | — | ||||||||||||||
Other income (expense) | — | 10 | (19 | ) | — | (9 | ) | ||||||||||||||
(Loss) income from continuing operations before taxes | (31 | ) | 12 | 293 | — | 274 | |||||||||||||||
Income tax (benefit) expense | (3 | ) | 16 | 51 | — | 64 | |||||||||||||||
(Loss) income from continuing operations | (28 | ) | (4 | ) | 242 | — | 210 | ||||||||||||||
Loss from discontinued operations before taxes | — | — | — | — | — | ||||||||||||||||
Income taxes | — | — | — | — | — | ||||||||||||||||
Loss from discontinued operations | — | — | — | — | — | ||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 232 | 186 | — | (418 | ) | — | |||||||||||||||
Net income | 204 | 182 | 242 | (418 | ) | 210 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 6 | — | 6 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 204 | $ | 182 | $ | 236 | $ | (418 | ) | $ | 204 | ||||||||||
Condensed Consolidating Statement of Income | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Revenue | |||||||||||||||||||||
Commissions, fees and other | $ | 2 | $ | — | $ | 8,583 | $ | — | $ | 8,585 | |||||||||||
Fiduciary investment income | — | — | 21 | — | 21 | ||||||||||||||||
Total revenue | 2 | — | 8,604 | — | 8,606 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | 27 | 34 | 5,042 | — | 5,103 | ||||||||||||||||
Other general expenses | 14 | 29 | 2,304 | — | 2,347 | ||||||||||||||||
Total operating expenses | 41 | 63 | 7,346 | — | 7,450 | ||||||||||||||||
Operating (loss) income | (39 | ) | (63 | ) | 1,258 | — | 1,156 | ||||||||||||||
Interest income | 1 | 2 | 3 | — | 6 | ||||||||||||||||
Interest expense | (12 | ) | (106 | ) | (35 | ) | — | (153 | ) | ||||||||||||
Intercompany interest income (expense) | 11 | 96 | (107 | ) | — | — | |||||||||||||||
Other income | — | 10 | 44 | — | 54 | ||||||||||||||||
(Loss) income from continuing operations before taxes | (39 | ) | (61 | ) | 1,163 | — | 1,063 | ||||||||||||||
Income tax (benefit) expense | (11 | ) | (24 | ) | 310 | — | 275 | ||||||||||||||
(Loss) income from continuing operations | (28 | ) | (37 | ) | 853 | — | 788 | ||||||||||||||
Loss from discontinued operations before taxes | — | — | — | — | — | ||||||||||||||||
Income taxes | — | — | — | — | — | ||||||||||||||||
Loss from discontinued operations | — | — | — | — | — | ||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 786 | 617 | — | (1,403 | ) | — | |||||||||||||||
Net income | 758 | 580 | 853 | (1,403 | ) | 788 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 30 | — | 30 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 758 | $ | 580 | $ | 823 | $ | (1,403 | ) | $ | 758 | ||||||||||
Condensed Consolidating Statement of Income | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Revenue | |||||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 8,368 | $ | — | $ | 8,368 | |||||||||||
Fiduciary investment income | — | 1 | 30 | — | 31 | ||||||||||||||||
Total revenue | — | 1 | 8,398 | — | 8,399 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | — | 31 | 4,889 | — | 4,920 | ||||||||||||||||
Other general expenses | 20 | 27 | 2,297 | — | 2,344 | ||||||||||||||||
Total operating expenses | 20 | 58 | 7,186 | — | 7,264 | ||||||||||||||||
Operating (loss) income | (20 | ) | (57 | ) | 1,212 | — | 1,135 | ||||||||||||||
Interest income | — | 1 | 5 | — | 6 | ||||||||||||||||
Interest expense | — | (125 | ) | (48 | ) | — | (173 | ) | |||||||||||||
Intercompany interest (expense) income | (11 | ) | 141 | (130 | ) | — | — | ||||||||||||||
Other income (expense) | — | 13 | (10 | ) | — | 3 | |||||||||||||||
(Loss) income from continuing operations before taxes | (31 | ) | (27 | ) | 1,029 | — | 971 | ||||||||||||||
Income tax (benefit) expense | (4 | ) | (11 | ) | 272 | — | 257 | ||||||||||||||
(Loss) income from continuing operations | (27 | ) | (16 | ) | 757 | — | 714 | ||||||||||||||
Loss from discontinued operations before taxes | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Income taxes | — | — | — | — | — | ||||||||||||||||
Loss from discontinued operations | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | 715 | 598 | — | (1,313 | ) | — | |||||||||||||||
Net income | 688 | 582 | 756 | (1,313 | ) | 713 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 25 | — | 25 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 688 | $ | 582 | $ | 731 | $ | (1,313 | ) | $ | 688 | ||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 256 | $ | 108 | $ | 272 | $ | (372 | ) | $ | 264 | ||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 8 | — | 8 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 256 | $ | 108 | $ | 264 | $ | (372 | ) | $ | 256 | ||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Change in fair value of investments | — | (4 | ) | (10 | ) | — | (14 | ) | |||||||||||||
Change in fair value of derivatives | — | 2 | 7 | — | 9 | ||||||||||||||||
Foreign currency translation adjustments | — | 6 | 149 | — | 155 | ||||||||||||||||
Post-retirement benefit obligation | — | 7 | 17 | — | 24 | ||||||||||||||||
Total other comprehensive income | — | 11 | 163 | — | 174 | ||||||||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | 170 | 157 | — | (327 | ) | — | |||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 3 | — | 3 | ||||||||||||||||
Total other comprehensive income attributable to Aon shareholders | 170 | 168 | 160 | (327 | ) | 171 | |||||||||||||||
Comprehensive income attributable to Aon shareholders | $ | 426 | $ | 276 | $ | 424 | $ | (699 | ) | $ | 427 | ||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 204 | $ | 182 | $ | 242 | $ | (418 | ) | $ | 210 | ||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 6 | — | 6 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 204 | $ | 182 | $ | 236 | $ | (418 | ) | $ | 204 | ||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||
Change in fair value of investments | — | — | — | — | — | ||||||||||||||||
Change in fair value of derivatives | — | 1 | 14 | — | 15 | ||||||||||||||||
Foreign currency translation adjustments | — | 17 | 147 | — | 164 | ||||||||||||||||
Post-retirement benefit obligation | — | 9 | (2 | ) | — | 7 | |||||||||||||||
Total other comprehensive income | — | 27 | 159 | — | 186 | ||||||||||||||||
Equity in other comprehensive income of subsidiaries, net of tax | 182 | 168 | — | (350 | ) | — | |||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 4 | — | 4 | ||||||||||||||||
Total other comprehensive income attributable to Aon shareholders | 182 | 195 | 155 | (350 | ) | 182 | |||||||||||||||
Comprehensive income attributable to Aon Shareholders | $ | 386 | $ | 377 | $ | 391 | $ | (768 | ) | $ | 386 | ||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 758 | $ | 580 | $ | 853 | $ | (1,403 | ) | $ | 788 | ||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 30 | — | 30 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 758 | $ | 580 | $ | 823 | $ | (1,403 | ) | $ | 758 | ||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Change in fair value of investments | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Change in fair value of derivatives | — | 5 | (17 | ) | — | (12 | ) | ||||||||||||||
Foreign currency translation adjustments | — | (14 | ) | (63 | ) | — | (77 | ) | |||||||||||||
Post-retirement benefit obligation | — | 22 | 43 | — | 65 | ||||||||||||||||
Total other comprehensive income (loss) | — | 13 | (38 | ) | — | (25 | ) | ||||||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | (27 | ) | (38 | ) | — | 65 | — | ||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 1 | — | 1 | ||||||||||||||||
Total other comprehensive loss attributable to Aon shareholders | (27 | ) | (25 | ) | (39 | ) | 65 | (26 | ) | ||||||||||||
Comprehensive income attributable to Aon shareholders | $ | 731 | $ | 555 | $ | 784 | $ | (1,338 | ) | $ | 732 | ||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 688 | $ | 582 | $ | 756 | $ | (1,313 | ) | $ | 713 | ||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 25 | — | 25 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 688 | $ | 582 | $ | 731 | $ | (1,313 | ) | $ | 688 | ||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||
Change in fair value of investments | — | — | — | — | — | ||||||||||||||||
Change in fair value of derivatives | — | 1 | 4 | — | 5 | ||||||||||||||||
Foreign currency translation adjustments | — | 16 | 55 | — | 71 | ||||||||||||||||
Post-retirement benefit obligation | — | 24 | 22 | — | 46 | ||||||||||||||||
Total other comprehensive income | — | 41 | 81 | — | 122 | ||||||||||||||||
Equity in other comprehensive income of subsidiaries, net of tax | 120 | 92 | — | (212 | ) | — | |||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 2 | — | 2 | ||||||||||||||||
Total other comprehensive income attributable to Aon shareholders | 120 | 133 | 79 | (212 | ) | 120 | |||||||||||||||
Comprehensive income attributable to Aon Shareholders | $ | 808 | $ | 715 | $ | 810 | $ | (1,525 | ) | $ | 808 | ||||||||||
Condensed Consolidating Statement of Financial Position | |||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 118 | $ | 291 | $ | — | $ | (40 | ) | $ | 369 | ||||||||||
Short-term investments | — | 124 | 233 | — | 357 | ||||||||||||||||
Receivables, net | — | 5 | 2,661 | — | 2,666 | ||||||||||||||||
Fiduciary assets | — | — | 11,698 | — | 11,698 | ||||||||||||||||
Intercompany receivables | 41 | 3,250 | 6,176 | (9,467 | ) | — | |||||||||||||||
Other current assets | 19 | 59 | 406 | — | 484 | ||||||||||||||||
Total Current Assets | 178 | 3,729 | 21,174 | (9,507 | ) | 15,574 | |||||||||||||||
Goodwill | — | — | 8,958 | — | 8,958 | ||||||||||||||||
Intangible assets, net | — | — | 2,657 | — | 2,657 | ||||||||||||||||
Fixed assets, net | — | — | 803 | — | 803 | ||||||||||||||||
Investments | — | 53 | 86 | — | 139 | ||||||||||||||||
Intercompany receivables | 7,166 | 2,181 | 2,195 | (11,542 | ) | — | |||||||||||||||
Other non-current assets | 119 | 748 | 408 | (101 | ) | 1,174 | |||||||||||||||
Investment in subsidiary | 4,306 | 11,187 | — | (15,493 | ) | — | |||||||||||||||
TOTAL ASSETS | $ | 11,769 | $ | 17,898 | $ | 36,281 | $ | (36,643 | ) | $ | 29,305 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Fiduciary liabilities | $ | — | $ | — | $ | 11,698 | $ | — | $ | 11,698 | |||||||||||
Short-term debt and current portion of long-term debt | 361 | 148 | 697 | — | 1,206 | ||||||||||||||||
Accounts payable and accrued liabilities | 16 | 41 | 1,506 | (40 | ) | 1,523 | |||||||||||||||
Intercompany payables | 1,308 | 4,727 | 3,430 | (9,465 | ) | — | |||||||||||||||
Other current liabilities | 1 | 47 | 718 | (2 | ) | 764 | |||||||||||||||
Total Current Liabilities | 1,686 | 4,963 | 18,049 | (9,507 | ) | 15,191 | |||||||||||||||
Long-term debt | 443 | 2,516 | 393 | — | 3,352 | ||||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,162 | 611 | — | 1,773 | ||||||||||||||||
Intercompany payables | 2,100 | 7,262 | 2,180 | (11,542 | ) | — | |||||||||||||||
Other non-current liabilities | 6 | 260 | 1,234 | (101 | ) | 1,399 | |||||||||||||||
TOTAL LIABILITIES | 4,235 | 16,163 | 22,467 | (21,150 | ) | 21,715 | |||||||||||||||
TOTAL AON SHAREHOLDERS’ EQUITY | 7,534 | 1,735 | 13,758 | (15,493 | ) | 7,534 | |||||||||||||||
Noncontrolling interests | — | — | 56 | — | 56 | ||||||||||||||||
TOTAL EQUITY | 7,534 | 1,735 | 13,814 | (15,493 | ) | 7,590 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 11,769 | $ | 17,898 | $ | 36,281 | $ | (36,643 | ) | $ | 29,305 | ||||||||||
Condensed Consolidating Statement of Financial Position | |||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 131 | $ | 199 | $ | — | $ | (39 | ) | $ | 291 | ||||||||||
Short-term investments | — | 89 | 257 | — | 346 | ||||||||||||||||
Receivables, net | 5 | 1 | 3,095 | — | 3,101 | ||||||||||||||||
Fiduciary assets | — | — | 12,214 | — | 12,214 | ||||||||||||||||
Intercompany receivables | — | 2,092 | 3,545 | (5,637 | ) | — | |||||||||||||||
Other current assets | 7 | 53 | 370 | — | 430 | ||||||||||||||||
Total Current Assets | 143 | 2,434 | 19,481 | (5,676 | ) | 16,382 | |||||||||||||||
Goodwill | — | — | 8,943 | — | 8,943 | ||||||||||||||||
Intangible assets, net | — | — | 2,975 | — | 2,975 | ||||||||||||||||
Fixed assets, net | — | — | 820 | — | 820 | ||||||||||||||||
Investments | — | 49 | 116 | — | 165 | ||||||||||||||||
Intercompany receivables | 166 | 1,997 | 2,350 | (4,513 | ) | — | |||||||||||||||
Other non-current assets | 117 | 735 | 1,174 | (825 | ) | 1,201 | |||||||||||||||
Investment in subsidiary | 10,398 | 10,208 | — | (20,606 | ) | — | |||||||||||||||
TOTAL ASSETS | $ | 10,824 | $ | 15,423 | $ | 35,859 | $ | (31,620 | ) | $ | 30,486 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Fiduciary liabilities | $ | — | $ | — | $ | 12,214 | $ | — | $ | 12,214 | |||||||||||
Short-term debt and current portion of long-term debt | — | 429 | 23 | — | 452 | ||||||||||||||||
Accounts payable and accrued liabilities | 10 | 71 | 1,811 | (39 | ) | 1,853 | |||||||||||||||
Intercompany payables | 51 | 2,637 | 2,162 | (4,850 | ) | — | |||||||||||||||
Other current liabilities | — | 49 | 779 | 3 | 831 | ||||||||||||||||
Total Current Liabilities | 61 | 3,186 | 16,989 | (4,886 | ) | 15,350 | |||||||||||||||
Long-term debt | 107 | 2,515 | 1,091 | — | 3,713 | ||||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,294 | 982 | — | 2,276 | ||||||||||||||||
Intercompany payables | 2,890 | 166 | 2,247 | (5,303 | ) | — | |||||||||||||||
Other non-current liabilities | 4 | 254 | 1,909 | (825 | ) | 1,342 | |||||||||||||||
TOTAL LIABILITIES | 3,062 | 7,415 | 23,218 | (11,014 | ) | 22,681 | |||||||||||||||
TOTAL AON SHAREHOLDERS’ EQUITY | 7,762 | 8,008 | 12,598 | (20,606 | ) | 7,762 | |||||||||||||||
Noncontrolling interests | — | — | 43 | — | 43 | ||||||||||||||||
TOTAL EQUITY | 7,762 | 8,008 | 12,641 | (20,606 | ) | 7,805 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 10,824 | $ | 15,423 | $ | 35,859 | $ | (31,620 | ) | $ | 30,486 | ||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
Aon | Aon | Other | Consolidating | ||||||||||||||||||
Non-Guarantor | |||||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | (14 | ) | $ | (195 | ) | $ | 1,193 | $ | — | $ | 984 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||
Sales of long-term investments | — | 8 | 73 | — | 81 | ||||||||||||||||
Purchase of long-term investments | — | (13 | ) | — | — | (13 | ) | ||||||||||||||
Net (purchases) sales of short-term investments - non-fiduciary | — | (35 | ) | 22 | — | (13 | ) | ||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (26 | ) | — | (26 | ) | ||||||||||||||
Proceeds from sale of businesses | — | — | 6 | — | 6 | ||||||||||||||||
Capital expenditures | — | — | (174 | ) | — | (174 | ) | ||||||||||||||
CASH USED FOR INVESTING ACTIVITIES | — | (40 | ) | (99 | ) | — | (139 | ) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||
Share repurchase | (1,025 | ) | — | — | — | (1,025 | ) | ||||||||||||||
Advances from (to) affiliates | 405 | 610 | (1,014 | ) | (1 | ) | — | ||||||||||||||
Issuance of shares for employee benefit plans | 84 | — | — | — | 84 | ||||||||||||||||
Issuance of debt | 1,145 | 2,894 | 231 | — | 4,270 | ||||||||||||||||
Repayment of debt | (449 | ) | (3,177 | ) | (244 | ) | — | (3,870 | ) | ||||||||||||
Cash dividends to shareholders | (159 | ) | — | — | — | (159 | ) | ||||||||||||||
Purchase of shares from noncontrolling interests | — | — | (6 | ) | — | (6 | ) | ||||||||||||||
Dividends paid to noncontrolling interests | — | — | (13 | ) | — | (13 | ) | ||||||||||||||
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | 1 | 327 | (1,046 | ) | (1 | ) | (719 | ) | |||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (48 | ) | — | (48 | ) | ||||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (13 | ) | 92 | — | (1 | ) | 78 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 131 | 199 | — | (39 | ) | 291 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 118 | $ | 291 | $ | — | $ | (40 | ) | $ | 369 | ||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ | (46 | ) | $ | (189 | ) | $ | 1,102 | $ | — | $ | 867 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||
Sales of long-term investments | — | 79 | 92 | — | 171 | ||||||||||||||||
Purchase of long-term investments | — | (9 | ) | — | — | (9 | ) | ||||||||||||||
Net (purchases) sales of short-term investments - non-fiduciary | (16 | ) | 61 | 21 | — | 66 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | (55 | ) | (42 | ) | — | (97 | ) | |||||||||||||
Proceeds from sale of businesses | — | — | 2 | — | 2 | ||||||||||||||||
Capital expenditures | — | — | (201 | ) | — | (201 | ) | ||||||||||||||
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | (16 | ) | 76 | (128 | ) | — | (68 | ) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||
Share repurchase | (525 | ) | (100 | ) | — | — | (625 | ) | |||||||||||||
Advances from (to) affiliates | 648 | 376 | (1,024 | ) | — | — | |||||||||||||||
Issuance of shares for employee benefit plans | 44 | 49 | — | — | 93 | ||||||||||||||||
Issuance of debt | — | 332 | 1 | — | 333 | ||||||||||||||||
Repayment of debt | — | (416 | ) | (11 | ) | — | (427 | ) | |||||||||||||
Cash dividends to shareholders | (104 | ) | (49 | ) | — | — | (153 | ) | |||||||||||||
Purchase of shares from noncontrolling interests | — | — | — | — | — | ||||||||||||||||
Dividends paid to noncontrolling interests | — | — | (17 | ) | — | (17 | ) | ||||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 63 | 192 | (1,051 | ) | — | (796 | ) | ||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | 15 | — | 15 | ||||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1 | 79 | (62 | ) | — | 18 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | — | (21 | ) | 293 | — | 272 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 1 | $ | 58 | $ | 231 | $ | — | $ | 290 | |||||||||||
Other_Income_Expense_Tables
Other Income (Expense) (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Other (Expense) Income [Abstract] | ||||||||||||||||
Other Income (Expense) | Other income (expense) consists of the following (in millions): | |||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Equity earnings | $ | 6 | $ | — | $ | 12 | $ | 8 | ||||||||
Gains on investments | 37 | 9 | 36 | 11 | ||||||||||||
Foreign currency remeasurement (losses) gains | (4 | ) | (24 | ) | 15 | (24 | ) | |||||||||
Derivative gains (losses) | 1 | 8 | (8 | ) | 8 | |||||||||||
Other | (1 | ) | (2 | ) | (1 | ) | — | |||||||||
$ | 39 | $ | (9 | ) | $ | 54 | $ | 3 | ||||||||
Acquisitions_and_Dispositions_
Acquisitions and Dispositions (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Combinations [Abstract] | |||||||||
Consideration transferred and preliminary value of intangible assets | The following table includes the aggregate consideration transferred and the preliminary value of intangible assets recorded as a result of the Company’s acquisitions: | ||||||||
Nine months ended September 30, | |||||||||
(millions) | 2013 | 2012 | |||||||
Consideration | $ | 26 | $ | 110 | |||||
Intangible assets: | |||||||||
Goodwill | $ | 26 | $ | 60 | |||||
Other intangible assets | 8 | 56 | |||||||
Total | $ | 34 | $ | 116 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of changes in the net carrying amount of goodwill by operating segment | The change in the net carrying amount of goodwill by reportable segment for the nine months ended September 30, 2013 is as follows (in millions): | |||||||||||||||||||||||
Risk | HR | Total | ||||||||||||||||||||||
Solutions | Solutions | |||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 5,982 | $ | 2,961 | $ | 8,943 | ||||||||||||||||||
Goodwill related to current year acquisitions | 24 | 2 | 26 | |||||||||||||||||||||
Goodwill related to disposals | (3 | ) | — | (3 | ) | |||||||||||||||||||
Goodwill related to prior year acquisitions | (2 | ) | 17 | 15 | ||||||||||||||||||||
Foreign currency translation | (19 | ) | (4 | ) | (23 | ) | ||||||||||||||||||
Balance as of September 30, 2013 | $ | 5,982 | $ | 2,976 | $ | 8,958 | ||||||||||||||||||
Schedule of other intangible assets by asset class | Other intangible assets by asset class are as follows (in millions): | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated | Net Carrying Amount | Gross Carrying Amount | Accumulated | Net Carrying Amount | |||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||||||
Tradenames | $ | 1,025 | $ | — | $ | 1,025 | $ | 1,025 | $ | — | $ | 1,025 | ||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Customer related and contract based | 2,686 | 1,218 | 1,468 | 2,714 | 969 | 1,745 | ||||||||||||||||||
Marketing, technology and other (1) | 611 | 447 | 164 | 619 | 414 | 205 | ||||||||||||||||||
$ | 4,322 | $ | 1,665 | $ | 2,657 | $ | 4,358 | $ | 1,383 | $ | 2,975 | |||||||||||||
______________________________________________ | ||||||||||||||||||||||||
(1) Tradenames with finite lives disclosed separately in prior years are now presented in Marketing, technology and other | ||||||||||||||||||||||||
Schedule of estimated future amortization expense on intangible assets | The estimated future amortization for finite lived intangible assets as of September 30, 2013 is as follows (in millions): | |||||||||||||||||||||||
HR Solutions | Risk Solutions | Total | ||||||||||||||||||||||
Remainder of 2013 | $ | 70 | $ | 28 | $ | 98 | ||||||||||||||||||
2014 | 243 | 95 | 338 | |||||||||||||||||||||
2015 | 212 | 79 | 291 | |||||||||||||||||||||
2016 | 177 | 67 | 244 | |||||||||||||||||||||
2017 | 140 | 56 | 196 | |||||||||||||||||||||
Thereafter | 342 | 123 | 465 | |||||||||||||||||||||
$ | 1,184 | $ | 448 | $ | 1,632 | |||||||||||||||||||
Restructuring_Tables
Restructuring (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Restructuring and Related Cost | ||||||||||||||||||||||||||||
Schedule of changes in company's liabilities for its restructuring plans | As of September 30, 2013, the Company’s liabilities for its restructuring plans are as follows (in millions): | |||||||||||||||||||||||||||
Aon Hewitt Plan | Aon Benfield Plan | 2007 Plan | Other | Total | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 96 | $ | 3 | $ | 35 | $ | 3 | $ | 137 | ||||||||||||||||||
Expensed | 106 | — | — | — | 106 | |||||||||||||||||||||||
Cash payments | (91 | ) | (1 | ) | (20 | ) | (1 | ) | (113 | ) | ||||||||||||||||||
Foreign exchange translation and other | 7 | — | 6 | — | 13 | |||||||||||||||||||||||
Balance at September 30, 2013 (1) | $ | 118 | $ | 2 | $ | 21 | $ | 2 | $ | 143 | ||||||||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||
(1) Included within Accounts payable and accrued liabilities and Other non-current liabilities | ||||||||||||||||||||||||||||
Aon Hewitt Plan [Member] | ||||||||||||||||||||||||||||
Restructuring and Related Cost | ||||||||||||||||||||||||||||
Schedule of restructuring and related expenses by type | The following table summarizes restructuring and related costs by type that have been incurred and are estimated to be incurred through the end of the restructuring initiative related to the Aon Hewitt Plan (in millions): | |||||||||||||||||||||||||||
2010 | 2011 | 2012 | Third Quarter 2013 | Nine Months 2013 | Total to Date | Estimated Total Cost for Restructuring Plan (1) | ||||||||||||||||||||||
Workforce reduction | $ | 49 | $ | 64 | $ | 74 | $ | 12 | $ | 50 | $ | 237 | $ | 261 | ||||||||||||||
Lease consolidation | 3 | 32 | 18 | 17 | 53 | 106 | 128 | |||||||||||||||||||||
Asset impairments | — | 7 | 4 | — | 3 | 14 | 15 | |||||||||||||||||||||
Other costs associated with restructuring (2) | — | 2 | 2 | 1 | 3 | 7 | 7 | |||||||||||||||||||||
Total restructuring expenses | $ | 52 | $ | 105 | $ | 98 | $ | 30 | $ | 109 | $ | 364 | $ | 411 | ||||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||
-1 | Actual costs, when incurred, will vary due to changes in the assumptions built into this plan. Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives. | |||||||||||||||||||||||||||
-2 | Other costs associated with restructuring initiatives, including moving costs and consulting and legal fees, are recognized when incurred. | |||||||||||||||||||||||||||
Aon Hewitt Plan [Member] | Total operating segments [Member] | ||||||||||||||||||||||||||||
Restructuring and Related Cost | ||||||||||||||||||||||||||||
Schedule of restructuring and related expenses by type | The following table summarizes the restructuring and related expenses, by segment, that have been incurred and are estimated to be incurred through the end of the restructuring initiative related to the Aon Hewitt Plan (in millions): | |||||||||||||||||||||||||||
2010 | 2011 | 2012 | Third Quarter 2013 | Nine Months 2013 | Total to Date | Estimated Total Cost for Restructuring Plan (1) | ||||||||||||||||||||||
HR Solutions | $ | 52 | $ | 49 | $ | 66 | $ | 6 | 57 | $ | 224 | $ | 244 | |||||||||||||||
Risk Solutions | — | 56 | 32 | 24 | 52 | 140 | 167 | |||||||||||||||||||||
Total restructuring expenses (1) | $ | 52 | $ | 105 | $ | 98 | $ | 30 | $ | 109 | $ | 364 | $ | 411 | ||||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||
(1) Costs included in the Risk Solutions segment are associated with the transfer of the health and benefits consulting business from HR Solutions to Risk Solutions effective January 1, 2012. Costs incurred in 2011 in the HR Solutions segment of $41 million related to the health and benefits consulting business have been reclassified and presented in the Risk Solutions segment. |
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||
Schedule of interest bearing assets | The Company’s interest-bearing assets and other investments are included in the following categories in the Condensed Consolidated Statements of Financial Position (in millions): | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Cash and cash equivalents | $ | 369 | $ | 291 | ||||
Short-term investments | 357 | 346 | ||||||
Fiduciary assets (1) | 4,335 | 4,029 | ||||||
Investments | 139 | 165 | ||||||
$ | 5,200 | $ | 4,831 | |||||
______________________________________________ | ||||||||
-1 | Fiduciary assets include funds held on behalf of clients but does not include fiduciary receivables. | |||||||
Schedule of investments | The Company’s investments are as follows (in millions): | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Equity method investments | $ | 113 | $ | 102 | ||||
Other investments (2) | 17 | 43 | ||||||
Fixed-maturity securities (3) | 9 | 20 | ||||||
$ | 139 | $ | 165 | |||||
______________________________________________ | ||||||||
-2 | The reduction in other investments is due to the sale of certain equity securities. | |||||||
(3) The reduction in fixed-maturity securities is due to the repayment in full of a security. |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Schedule of Net Income from Participating Securities | Income from continuing operations, income from discontinued operations and net income, attributable to participating securities, were as follows (in millions): | |||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Income from continuing operations | $ | 3 | $ | 2 | $ | 8 | $ | 8 | ||||||||||||
Income from discontinued operations | — | — | — | — | ||||||||||||||||
Net income | $ | 3 | $ | 2 | $ | 8 | $ | 8 | ||||||||||||
Schedule of components of weighted average number of shares | Weighted average shares outstanding are as follows (in millions): | |||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Shares for basic earnings per share (1) | 309.5 | 327.3 | 313.2 | 330.6 | ||||||||||||||||
Common stock equivalents | 3.4 | 3.7 | 3.5 | 3.8 | ||||||||||||||||
Shares for diluted earnings per share | 312.9 | 331 | 316.7 | 334.4 | ||||||||||||||||
______________________________________________ | ||||||||||||||||||||
(1) Includes 3.8 million and 4.5 million of participating securities for the three months ended September 30, 2013 and 2012, respectively, and 4.0 million and 4.7 million of participating securities for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||
Components of Accumulated other comprehensive loss, net of related tax | Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions): | |||||||||||||||||||
Change in Fair Value of Investments (1) | Change in Fair Value of Derivatives (1) | Foreign Currency Translation Adjustments | Post-Retirement Benefit Obligation (2) | Total | ||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | (28 | ) | $ | 233 | $ | (2,815 | ) | $ | (2,610 | ) | |||||||
Other comprehensive income (loss) before reclassifications, net | 12 | (24 | ) | (78 | ) | (4 | ) | (94 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (20 | ) | 20 | — | 100 | 100 | ||||||||||||||
Tax benefit | 7 | (8 | ) | — | (31 | ) | (32 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net | (13 | ) | 12 | — | 69 | 68 | ||||||||||||||
Net current period other comprehensive (loss) income | (1 | ) | (12 | ) | (78 | ) | 65 | (26 | ) | |||||||||||
Balance at September 30, 2013 | $ | (1 | ) | $ | (40 | ) | $ | 155 | $ | (2,750 | ) | $ | (2,636 | ) | ||||||
______________________________________________ | ||||||||||||||||||||
(1) Reclassifications from Accumulated other comprehensive loss are recorded in Other income | ||||||||||||||||||||
(2) Reclassifications from Accumulated other comprehensive loss are recorded in Compensation and benefits |
Employee_Benefits_Tables
Employee Benefits (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Components of net periodic benefit cost for the pension plans | The following table provides the components of the net periodic benefit cost for Aon’s U.S. pension plans, along with its most significant international pension plans, which are located in the U.K., the Netherlands and Canada (in millions): | |||||||||||||||
Three months ended September 30, | ||||||||||||||||
U.K. and Non-U.S. | U.S. | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 5 | $ | 4 | $ | — | $ | — | ||||||||
Interest cost | 63 | 66 | 28 | 29 | ||||||||||||
Expected return on plan assets | (89 | ) | (80 | ) | (34 | ) | (31 | ) | ||||||||
Amortization of net actuarial loss | 18 | 15 | 13 | 10 | ||||||||||||
Net periodic (benefit) cost | $ | (3 | ) | $ | 5 | $ | 7 | $ | 8 | |||||||
Nine months ended September 30, | ||||||||||||||||
U.K. and Non-U.S. | U.S. | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 14 | $ | 12 | $ | — | $ | — | ||||||||
Interest cost | 189 | 198 | 84 | 89 | ||||||||||||
Expected return on plan assets | (267 | ) | (241 | ) | (103 | ) | (95 | ) | ||||||||
Amortization of net actuarial loss | 55 | 44 | 39 | 32 | ||||||||||||
Net periodic (benefit) cost | $ | (9 | ) | $ | 13 | $ | 20 | $ | 26 | |||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Share-based compensation expense recognized in continuing operations | The following table summarizes share-based compensation expense recognized in the Condensed Consolidated Statements of Income in Compensation and benefits (in millions): | |||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Restricted stock units (“RSUs”) | $ | 40 | $ | 37 | $ | 135 | $ | 120 | ||||||||
Performance share awards (“PSAs”) | 28 | 15 | 66 | 30 | ||||||||||||
Stock options | — | 1 | 1 | 4 | ||||||||||||
Employee stock purchase plans | 2 | 2 | 5 | 6 | ||||||||||||
Total stock-based compensation expense | $ | 70 | $ | 55 | $ | 207 | $ | 160 | ||||||||
Restricted share unit activity | A summary of the status of the Company’s RSUs is as follows (shares in thousands): | |||||||||||||||
Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Shares | Fair Value (1) | Shares | Fair Value (1) | |||||||||||||
Non-vested at beginning of period | 10,432 | $ | 44 | 9,916 | $ | 42 | ||||||||||
Granted | 3,598 | 62 | 4,888 | 46 | ||||||||||||
Vested | (3,618 | ) | 44 | (3,343 | ) | 42 | ||||||||||
Forfeited | (308 | ) | 47 | (516 | ) | 44 | ||||||||||
Non-vested at end of period | 10,104 | 51 | 10,945 | 44 | ||||||||||||
______________________________________________ | ||||||||||||||||
-1 | Represents per share weighted average fair value of award at date of grant | |||||||||||||||
Performance-based plans | Information as of September 30, 2013 regarding the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the nine months ended September 30, 2013 and the years ended December 31, 2012 and 2011, respectively, is as follows (shares in thousands, dollars in millions, except fair value): | |||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | As of December 31, 2011 | ||||||||||||||
Target PSAs granted | 1,135 | 1,369 | 1,715 | |||||||||||||
Fair value (1) | $ | 58 | $ | 47 | $ | 50 | ||||||||||
Number of shares that would be issued based on current performance levels | 1,135 | 2,232 | 1,386 | |||||||||||||
Unamortized expense, based on current performance levels | $ | 53 | $ | 46 | $ | 5 | ||||||||||
______________________________________________ | ||||||||||||||||
-1 | Represents per share weighted average fair value of award at date of grant. | |||||||||||||||
Share options and related information | A summary of the status of the Company’s share options and related information is as follows (shares in thousands): | |||||||||||||||
Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Shares | Weighted- Average | Shares | Weighted- Average | |||||||||||||
Exercise Price | Exercise Price | |||||||||||||||
Beginning outstanding | 5,611 | $ | 32 | 9,116 | $ | 32 | ||||||||||
Granted | — | — | — | |||||||||||||
Exercised | (1,694 | ) | 32 | (2,570 | ) | 31 | ||||||||||
Forfeited and expired | (29 | ) | 34 | (67 | ) | 37 | ||||||||||
Outstanding at end of period | 3,888 | 32 | 6,479 | 32 | ||||||||||||
Exercisable at end of period | 3,681 | 32 | 5,969 | 31 | ||||||||||||
Other information related to the company's share options | Other information related to the Company’s share options is as follows (in millions): | |||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Aggregate intrinsic value of stock options exercised | $ | 14 | $ | 23 | $ | 53 | $ | 47 | ||||||||
Cash received from the exercise of stock options | 14 | 29 | 55 | 80 | ||||||||||||
Tax benefit realized from the exercise of stock options | 3 | 5 | 10 | 8 | ||||||||||||
Derivatives_and_Hedging_Tables
Derivatives and Hedging (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Notional and fair values of derivative instruments | The notional and fair values of derivative instruments are as follows (in millions): | |||||||||||||||||||||||||||||||
Notional Amount | Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Derivatives accounted for as hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 169 | $ | 336 | $ | 8 | $ | 17 | $ | — | $ | — | ||||||||||||||||||||
Foreign exchange contracts | 1,159 | 1,208 | 56 | 191 | 112 | 250 | ||||||||||||||||||||||||||
Total | 1,328 | 1,544 | 64 | 208 | 112 | 250 | ||||||||||||||||||||||||||
Derivatives not accounted for as hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | 267 | 305 | 1 | 2 | 1 | 1 | ||||||||||||||||||||||||||
Total | $ | 1,595 | $ | 1,849 | $ | 65 | $ | 210 | $ | 113 | $ | 251 | ||||||||||||||||||||
Offsetting of financial assets and derivatives assets are as follows (in millions): | ||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets Presented in the Statement of Financial Position (1) | ||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Derivatives accounted for as hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 8 | $ | 17 | $ | — | $ | — | $ | 8 | $ | 17 | ||||||||||||||||||||
Foreign exchange contracts | 56 | 191 | (25 | ) | (160 | ) | 31 | 31 | ||||||||||||||||||||||||
Total | 64 | 208 | (25 | ) | (160 | ) | 39 | 48 | ||||||||||||||||||||||||
Derivatives not accounted for as hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | 1 | 2 | (1 | ) | — | — | 2 | |||||||||||||||||||||||||
Total | $ | 65 | $ | 210 | $ | (26 | ) | $ | (160 | ) | $ | 39 | $ | 50 | ||||||||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||||||
(1) Included within Other current assets or Other non-current assets | ||||||||||||||||||||||||||||||||
Offsetting of financial liabilities and derivative liabilities are as follows (in millions): | ||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Liabilities Presented in the Statement of Financial Position (2) | ||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Derivatives accounted for as hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Foreign exchange contracts | 112 | 250 | (25 | ) | (160 | ) | 87 | 90 | ||||||||||||||||||||||||
Total | 112 | 250 | (25 | ) | (160 | ) | 87 | 90 | ||||||||||||||||||||||||
Derivatives not accounted for as hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | 1 | 1 | (1 | ) | — | — | 1 | |||||||||||||||||||||||||
Total | $ | 113 | $ | 251 | $ | (26 | ) | $ | (160 | ) | $ | 87 | $ | 91 | ||||||||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||||||
(2) Included within Other current liabilities or Other non-current liabilities | ||||||||||||||||||||||||||||||||
Derivative gains (losses) | The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2013 and 2012 are as follows (in millions): | |||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Gain (Loss) recognized in Accumulated Other Comprehensive Loss: | ||||||||||||||||||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Foreign exchange contracts | — | 16 | (28 | ) | (14 | ) | ||||||||||||||||||||||||||
Total | $ | — | $ | 16 | $ | (28 | ) | $ | (14 | ) | ||||||||||||||||||||||
Foreign Net Investment Hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | — | $ | 3 | $ | — | $ | 4 | ||||||||||||||||||||||||
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | ||||||||||||||||||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts (1) | $ | — | $ | — | $ | (1 | ) | $ | — | |||||||||||||||||||||||
Foreign exchange contracts (2) | (10 | ) | (7 | ) | (7 | ) | (23 | ) | ||||||||||||||||||||||||
Total | (10 | ) | (7 | ) | (8 | ) | (23 | ) | ||||||||||||||||||||||||
Foreign Net Investment Hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||||||
(1) Included within Fiduciary investment income and Interest expense | ||||||||||||||||||||||||||||||||
(2) Included within Other income (expense) and Interest expense | ||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivative (1) (2) | Amount of Gain (Loss) Recognized in Income on Related Hedge Item (2) | Amount of Gain (Loss) Recognized in Income on Derivative (1) (2) | Amount of Gain (Loss) Recognized in Income on Related Hedge Item (1) (2) | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | (7 | ) | $ | (3 | ) | $ | 7 | $ | 3 | $ | (8 | ) | $ | — | $ | 8 | $ | — | |||||||||||||
______________________________________________ | ||||||||||||||||||||||||||||||||
(1) Relates to fixed rate debt | ||||||||||||||||||||||||||||||||
(2) Included in Interest expense |
Fair_Value_and_Financial_Instr1
Fair Value and Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Schedule of assets and liabilities that are measured at fair value on a recurring basis | The following tables present the categorization of the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2013 and December 31, 2012 (in millions): | |||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance at September 30, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Money market funds and highly liquid debt securities (1) | $ | 2,098 | $ | 2,073 | $ | 25 | $ | — | ||||||||
Other investments: | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Corporate bonds | 2 | — | — | 2 | ||||||||||||
Government bonds | 7 | — | 7 | — | ||||||||||||
Equity securities | 9 | 5 | 4 | — | ||||||||||||
Derivatives: | ||||||||||||||||
Interest rate contracts | 8 | — | 8 | — | ||||||||||||
Foreign exchange contracts | 57 | — | 57 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Derivatives: | ||||||||||||||||
Foreign exchange contracts | 113 | — | 113 | — | ||||||||||||
______________________________________________ | ||||||||||||||||
(1) Includes $2,073 million of money market funds and $25 million of highly liquid debt securities that are classified as Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. See Note 8 “Investments” for additional information regarding the Company’s investments. | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance at December 31, 2012 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Money market funds and highly liquid debt securities (1) | $ | 2,133 | $ | 2,108 | $ | 25 | $ | — | ||||||||
Other investments: | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Corporate bonds | 12 | — | — | 12 | ||||||||||||
Government Bonds | 8 | — | 8 | — | ||||||||||||
Equity securities | 5 | 5 | — | — | ||||||||||||
Derivatives: | ||||||||||||||||
Interest rate contracts | 17 | — | 17 | — | ||||||||||||
Foreign exchange contracts | 193 | — | 193 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Derivatives: | ||||||||||||||||
Foreign exchange contracts | 251 | — | 251 | — | ||||||||||||
______________________________________________ | ||||||||||||||||
(1) Includes $2,108 million of money market funds and $25 million of highly liquid debt securities that are classified as Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. See Note 8 “Investments” for additional information regarding the Company’s investments. | ||||||||||||||||
Schedule of financial instruments where the carrying amounts and fair values differ | The fair value of all long-term debt instruments is classified as Level 2. The following table discloses the Company’s financial instruments where the carrying amounts and fair values differ (in millions): | |||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Long-term debt | $ | 3,352 | $ | 3,583 | $ | 3,713 | $ | 4,162 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of total revenue by business segments | Aon’s total revenue is as follows (in millions): | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Risk Solutions | $ | 1,821 | $ | 1,778 | $ | 5,736 | $ | 5,582 | ||||||||
HR Solutions | 981 | 971 | 2,891 | 2,847 | ||||||||||||
Intersegment elimination | (8 | ) | (12 | ) | (21 | ) | (30 | ) | ||||||||
Total revenue | $ | 2,794 | $ | 2,737 | $ | 8,606 | $ | 8,399 | ||||||||
Schedule of commissions, fees and other revenues by products | Commissions, fees and other revenues by product are as follows (in millions): | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Retail brokerage | $ | 1,424 | $ | 1,390 | $ | 4,548 | $ | 4,395 | ||||||||
Reinsurance brokerage | 389 | 377 | 1,167 | 1,156 | ||||||||||||
Total Risk Solutions Segment | 1,813 | 1,767 | 5,715 | 5,551 | ||||||||||||
Consulting services | 406 | 394 | 1,176 | 1,140 | ||||||||||||
Outsourcing | 587 | 585 | 1,746 | 1,723 | ||||||||||||
Intrasegment | (12 | ) | (8 | ) | (31 | ) | (16 | ) | ||||||||
Total HR Solutions Segment | 981 | 971 | 2,891 | 2,847 | ||||||||||||
Intersegment | (8 | ) | (12 | ) | (21 | ) | (30 | ) | ||||||||
Total commissions, fees and other revenue | $ | 2,786 | $ | 2,726 | $ | 8,585 | $ | 8,368 | ||||||||
Schedule of fiduciary investment income by business segments | Fiduciary investment income by segment is as follows (in millions): | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Risk Solutions | $ | 8 | $ | 11 | $ | 21 | $ | 31 | ||||||||
HR Solutions | — | — | — | — | ||||||||||||
Total fiduciary investment income | $ | 8 | $ | 11 | $ | 21 | $ | 31 | ||||||||
Schedule of reconciliation of segment income before tax to income from continuing operations before income taxes | A reconciliation of segment operating income before tax to income before income taxes is as follows (in millions): | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Risk Solutions | $ | 333 | $ | 309 | $ | 1,127 | $ | 1,059 | ||||||||
HR Solutions | 75 | 80 | 162 | 211 | ||||||||||||
Segment income before income taxes | 408 | 389 | 1,289 | 1,270 | ||||||||||||
Unallocated expenses | (44 | ) | (50 | ) | (133 | ) | (135 | ) | ||||||||
Interest income | 3 | 1 | 6 | 6 | ||||||||||||
Interest expense | (53 | ) | (57 | ) | (153 | ) | (173 | ) | ||||||||
Other income (expense) | 39 | (9 | ) | 54 | 3 | |||||||||||
Income before income taxes | $ | 353 | $ | 274 | $ | 1,063 | $ | 971 | ||||||||
Guarantee_of_Registered_Securi1
Guarantee of Registered Securities (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Guarantee of Registered Securities [Abstract] | |||||||||||||||||||||
Condensed Consolidating Statements of Income | Condensed Consolidating Statement of Income | ||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Revenue | |||||||||||||||||||||
Commissions, fees and other | $ | 1 | $ | — | $ | 2,785 | $ | — | $ | 2,786 | |||||||||||
Fiduciary investment income | — | — | 8 | — | 8 | ||||||||||||||||
Total revenue | 1 | — | 2,793 | — | 2,794 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | 11 | 14 | 1,641 | — | 1,666 | ||||||||||||||||
Other general expenses | — | 5 | 759 | — | 764 | ||||||||||||||||
Total operating expenses | 11 | 19 | 2,400 | — | 2,430 | ||||||||||||||||
Operating (loss) income | (10 | ) | (19 | ) | 393 | — | 364 | ||||||||||||||
Interest income | — | 1 | 2 | — | 3 | ||||||||||||||||
Interest expense | (6 | ) | (39 | ) | (8 | ) | — | (53 | ) | ||||||||||||
Intercompany interest income (expense) | 25 | 11 | (36 | ) | — | — | |||||||||||||||
Other income | — | 13 | 26 | — | 39 | ||||||||||||||||
Income (loss) from continuing operations before taxes | 9 | (33 | ) | 377 | — | 353 | |||||||||||||||
Income tax (benefit) expense | (2 | ) | (14 | ) | 105 | — | 89 | ||||||||||||||
Income (loss) from continuing operations | 11 | (19 | ) | 272 | — | 264 | |||||||||||||||
Loss from discontinued operations before taxes | — | — | — | — | — | ||||||||||||||||
Income taxes | — | — | — | — | — | ||||||||||||||||
Loss from discontinued operations | — | — | — | — | — | ||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 245 | 127 | — | (372 | ) | — | |||||||||||||||
Net income | 256 | 108 | 272 | (372 | ) | 264 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 8 | — | 8 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 256 | $ | 108 | $ | 264 | $ | (372 | ) | $ | 256 | ||||||||||
Condensed Consolidating Statement of Income | |||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Revenue | |||||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 2,726 | $ | — | $ | 2,726 | |||||||||||
Fiduciary investment income | — | — | 11 | — | 11 | ||||||||||||||||
Total revenue | — | — | 2,737 | — | 2,737 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | 4 | (5 | ) | 1,621 | — | 1,620 | |||||||||||||||
Other general expenses | 19 | 6 | 753 | — | 778 | ||||||||||||||||
Total operating expenses | 23 | 1 | 2,374 | — | 2,398 | ||||||||||||||||
Operating (loss) income | (23 | ) | (1 | ) | 363 | — | 339 | ||||||||||||||
Interest income | — | — | 1 | — | 1 | ||||||||||||||||
Interest expense | — | (45 | ) | (12 | ) | — | (57 | ) | |||||||||||||
Intercompany interest (expense) income | (8 | ) | 48 | (40 | ) | — | — | ||||||||||||||
Other income (expense) | — | 10 | (19 | ) | — | (9 | ) | ||||||||||||||
(Loss) income from continuing operations before taxes | (31 | ) | 12 | 293 | — | 274 | |||||||||||||||
Income tax (benefit) expense | (3 | ) | 16 | 51 | — | 64 | |||||||||||||||
(Loss) income from continuing operations | (28 | ) | (4 | ) | 242 | — | 210 | ||||||||||||||
Loss from discontinued operations before taxes | — | — | — | — | — | ||||||||||||||||
Income taxes | — | — | — | — | — | ||||||||||||||||
Loss from discontinued operations | — | — | — | — | — | ||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 232 | 186 | — | (418 | ) | — | |||||||||||||||
Net income | 204 | 182 | 242 | (418 | ) | 210 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 6 | — | 6 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 204 | $ | 182 | $ | 236 | $ | (418 | ) | $ | 204 | ||||||||||
Condensed Consolidating Statement of Income | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Revenue | |||||||||||||||||||||
Commissions, fees and other | $ | 2 | $ | — | $ | 8,583 | $ | — | $ | 8,585 | |||||||||||
Fiduciary investment income | — | — | 21 | — | 21 | ||||||||||||||||
Total revenue | 2 | — | 8,604 | — | 8,606 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | 27 | 34 | 5,042 | — | 5,103 | ||||||||||||||||
Other general expenses | 14 | 29 | 2,304 | — | 2,347 | ||||||||||||||||
Total operating expenses | 41 | 63 | 7,346 | — | 7,450 | ||||||||||||||||
Operating (loss) income | (39 | ) | (63 | ) | 1,258 | — | 1,156 | ||||||||||||||
Interest income | 1 | 2 | 3 | — | 6 | ||||||||||||||||
Interest expense | (12 | ) | (106 | ) | (35 | ) | — | (153 | ) | ||||||||||||
Intercompany interest income (expense) | 11 | 96 | (107 | ) | — | — | |||||||||||||||
Other income | — | 10 | 44 | — | 54 | ||||||||||||||||
(Loss) income from continuing operations before taxes | (39 | ) | (61 | ) | 1,163 | — | 1,063 | ||||||||||||||
Income tax (benefit) expense | (11 | ) | (24 | ) | 310 | — | 275 | ||||||||||||||
(Loss) income from continuing operations | (28 | ) | (37 | ) | 853 | — | 788 | ||||||||||||||
Loss from discontinued operations before taxes | — | — | — | — | — | ||||||||||||||||
Income taxes | — | — | — | — | — | ||||||||||||||||
Loss from discontinued operations | — | — | — | — | — | ||||||||||||||||
Equity in earnings of subsidiaries, net of tax | 786 | 617 | — | (1,403 | ) | — | |||||||||||||||
Net income | 758 | 580 | 853 | (1,403 | ) | 788 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 30 | — | 30 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 758 | $ | 580 | $ | 823 | $ | (1,403 | ) | $ | 758 | ||||||||||
Condensed Consolidating Statement of Income | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Revenue | |||||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 8,368 | $ | — | $ | 8,368 | |||||||||||
Fiduciary investment income | — | 1 | 30 | — | 31 | ||||||||||||||||
Total revenue | — | 1 | 8,398 | — | 8,399 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | — | 31 | 4,889 | — | 4,920 | ||||||||||||||||
Other general expenses | 20 | 27 | 2,297 | — | 2,344 | ||||||||||||||||
Total operating expenses | 20 | 58 | 7,186 | — | 7,264 | ||||||||||||||||
Operating (loss) income | (20 | ) | (57 | ) | 1,212 | — | 1,135 | ||||||||||||||
Interest income | — | 1 | 5 | — | 6 | ||||||||||||||||
Interest expense | — | (125 | ) | (48 | ) | — | (173 | ) | |||||||||||||
Intercompany interest (expense) income | (11 | ) | 141 | (130 | ) | — | — | ||||||||||||||
Other income (expense) | — | 13 | (10 | ) | — | 3 | |||||||||||||||
(Loss) income from continuing operations before taxes | (31 | ) | (27 | ) | 1,029 | — | 971 | ||||||||||||||
Income tax (benefit) expense | (4 | ) | (11 | ) | 272 | — | 257 | ||||||||||||||
(Loss) income from continuing operations | (27 | ) | (16 | ) | 757 | — | 714 | ||||||||||||||
Loss from discontinued operations before taxes | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Income taxes | — | — | — | — | — | ||||||||||||||||
Loss from discontinued operations | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | 715 | 598 | — | (1,313 | ) | — | |||||||||||||||
Net income | 688 | 582 | 756 | (1,313 | ) | 713 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 25 | — | 25 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 688 | $ | 582 | $ | 731 | $ | (1,313 | ) | $ | 688 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 256 | $ | 108 | $ | 272 | $ | (372 | ) | $ | 264 | ||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 8 | — | 8 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 256 | $ | 108 | $ | 264 | $ | (372 | ) | $ | 256 | ||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Change in fair value of investments | — | (4 | ) | (10 | ) | — | (14 | ) | |||||||||||||
Change in fair value of derivatives | — | 2 | 7 | — | 9 | ||||||||||||||||
Foreign currency translation adjustments | — | 6 | 149 | — | 155 | ||||||||||||||||
Post-retirement benefit obligation | — | 7 | 17 | — | 24 | ||||||||||||||||
Total other comprehensive income | — | 11 | 163 | — | 174 | ||||||||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | 170 | 157 | — | (327 | ) | — | |||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 3 | — | 3 | ||||||||||||||||
Total other comprehensive income attributable to Aon shareholders | 170 | 168 | 160 | (327 | ) | 171 | |||||||||||||||
Comprehensive income attributable to Aon shareholders | $ | 426 | $ | 276 | $ | 424 | $ | (699 | ) | $ | 427 | ||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 204 | $ | 182 | $ | 242 | $ | (418 | ) | $ | 210 | ||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 6 | — | 6 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 204 | $ | 182 | $ | 236 | $ | (418 | ) | $ | 204 | ||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||
Change in fair value of investments | — | — | — | — | — | ||||||||||||||||
Change in fair value of derivatives | — | 1 | 14 | — | 15 | ||||||||||||||||
Foreign currency translation adjustments | — | 17 | 147 | — | 164 | ||||||||||||||||
Post-retirement benefit obligation | — | 9 | (2 | ) | — | 7 | |||||||||||||||
Total other comprehensive income | — | 27 | 159 | — | 186 | ||||||||||||||||
Equity in other comprehensive income of subsidiaries, net of tax | 182 | 168 | — | (350 | ) | — | |||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 4 | — | 4 | ||||||||||||||||
Total other comprehensive income attributable to Aon shareholders | 182 | 195 | 155 | (350 | ) | 182 | |||||||||||||||
Comprehensive income attributable to Aon Shareholders | $ | 386 | $ | 377 | $ | 391 | $ | (768 | ) | $ | 386 | ||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 758 | $ | 580 | $ | 853 | $ | (1,403 | ) | $ | 788 | ||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 30 | — | 30 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 758 | $ | 580 | $ | 823 | $ | (1,403 | ) | $ | 758 | ||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Change in fair value of investments | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Change in fair value of derivatives | — | 5 | (17 | ) | — | (12 | ) | ||||||||||||||
Foreign currency translation adjustments | — | (14 | ) | (63 | ) | — | (77 | ) | |||||||||||||
Post-retirement benefit obligation | — | 22 | 43 | — | 65 | ||||||||||||||||
Total other comprehensive income (loss) | — | 13 | (38 | ) | — | (25 | ) | ||||||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | (27 | ) | (38 | ) | — | 65 | — | ||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 1 | — | 1 | ||||||||||||||||
Total other comprehensive loss attributable to Aon shareholders | (27 | ) | (25 | ) | (39 | ) | 65 | (26 | ) | ||||||||||||
Comprehensive income attributable to Aon shareholders | $ | 731 | $ | 555 | $ | 784 | $ | (1,338 | ) | $ | 732 | ||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 688 | $ | 582 | $ | 756 | $ | (1,313 | ) | $ | 713 | ||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 25 | — | 25 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 688 | $ | 582 | $ | 731 | $ | (1,313 | ) | $ | 688 | ||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||
Change in fair value of investments | — | — | — | — | — | ||||||||||||||||
Change in fair value of derivatives | — | 1 | 4 | — | 5 | ||||||||||||||||
Foreign currency translation adjustments | — | 16 | 55 | — | 71 | ||||||||||||||||
Post-retirement benefit obligation | — | 24 | 22 | — | 46 | ||||||||||||||||
Total other comprehensive income | — | 41 | 81 | — | 122 | ||||||||||||||||
Equity in other comprehensive income of subsidiaries, net of tax | 120 | 92 | — | (212 | ) | — | |||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 2 | — | 2 | ||||||||||||||||
Total other comprehensive income attributable to Aon shareholders | 120 | 133 | 79 | (212 | ) | 120 | |||||||||||||||
Comprehensive income attributable to Aon Shareholders | $ | 808 | $ | 715 | $ | 810 | $ | (1,525 | ) | $ | 808 | ||||||||||
Condensed Consolidating Statements of Financial Position | Condensed Consolidating Statement of Financial Position | ||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 118 | $ | 291 | $ | — | $ | (40 | ) | $ | 369 | ||||||||||
Short-term investments | — | 124 | 233 | — | 357 | ||||||||||||||||
Receivables, net | — | 5 | 2,661 | — | 2,666 | ||||||||||||||||
Fiduciary assets | — | — | 11,698 | — | 11,698 | ||||||||||||||||
Intercompany receivables | 41 | 3,250 | 6,176 | (9,467 | ) | — | |||||||||||||||
Other current assets | 19 | 59 | 406 | — | 484 | ||||||||||||||||
Total Current Assets | 178 | 3,729 | 21,174 | (9,507 | ) | 15,574 | |||||||||||||||
Goodwill | — | — | 8,958 | — | 8,958 | ||||||||||||||||
Intangible assets, net | — | — | 2,657 | — | 2,657 | ||||||||||||||||
Fixed assets, net | — | — | 803 | — | 803 | ||||||||||||||||
Investments | — | 53 | 86 | — | 139 | ||||||||||||||||
Intercompany receivables | 7,166 | 2,181 | 2,195 | (11,542 | ) | — | |||||||||||||||
Other non-current assets | 119 | 748 | 408 | (101 | ) | 1,174 | |||||||||||||||
Investment in subsidiary | 4,306 | 11,187 | — | (15,493 | ) | — | |||||||||||||||
TOTAL ASSETS | $ | 11,769 | $ | 17,898 | $ | 36,281 | $ | (36,643 | ) | $ | 29,305 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Fiduciary liabilities | $ | — | $ | — | $ | 11,698 | $ | — | $ | 11,698 | |||||||||||
Short-term debt and current portion of long-term debt | 361 | 148 | 697 | — | 1,206 | ||||||||||||||||
Accounts payable and accrued liabilities | 16 | 41 | 1,506 | (40 | ) | 1,523 | |||||||||||||||
Intercompany payables | 1,308 | 4,727 | 3,430 | (9,465 | ) | — | |||||||||||||||
Other current liabilities | 1 | 47 | 718 | (2 | ) | 764 | |||||||||||||||
Total Current Liabilities | 1,686 | 4,963 | 18,049 | (9,507 | ) | 15,191 | |||||||||||||||
Long-term debt | 443 | 2,516 | 393 | — | 3,352 | ||||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,162 | 611 | — | 1,773 | ||||||||||||||||
Intercompany payables | 2,100 | 7,262 | 2,180 | (11,542 | ) | — | |||||||||||||||
Other non-current liabilities | 6 | 260 | 1,234 | (101 | ) | 1,399 | |||||||||||||||
TOTAL LIABILITIES | 4,235 | 16,163 | 22,467 | (21,150 | ) | 21,715 | |||||||||||||||
TOTAL AON SHAREHOLDERS’ EQUITY | 7,534 | 1,735 | 13,758 | (15,493 | ) | 7,534 | |||||||||||||||
Noncontrolling interests | — | — | 56 | — | 56 | ||||||||||||||||
TOTAL EQUITY | 7,534 | 1,735 | 13,814 | (15,493 | ) | 7,590 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 11,769 | $ | 17,898 | $ | 36,281 | $ | (36,643 | ) | $ | 29,305 | ||||||||||
Condensed Consolidating Statement of Financial Position | |||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 131 | $ | 199 | $ | — | $ | (39 | ) | $ | 291 | ||||||||||
Short-term investments | — | 89 | 257 | — | 346 | ||||||||||||||||
Receivables, net | 5 | 1 | 3,095 | — | 3,101 | ||||||||||||||||
Fiduciary assets | — | — | 12,214 | — | 12,214 | ||||||||||||||||
Intercompany receivables | — | 2,092 | 3,545 | (5,637 | ) | — | |||||||||||||||
Other current assets | 7 | 53 | 370 | — | 430 | ||||||||||||||||
Total Current Assets | 143 | 2,434 | 19,481 | (5,676 | ) | 16,382 | |||||||||||||||
Goodwill | — | — | 8,943 | — | 8,943 | ||||||||||||||||
Intangible assets, net | — | — | 2,975 | — | 2,975 | ||||||||||||||||
Fixed assets, net | — | — | 820 | — | 820 | ||||||||||||||||
Investments | — | 49 | 116 | — | 165 | ||||||||||||||||
Intercompany receivables | 166 | 1,997 | 2,350 | (4,513 | ) | — | |||||||||||||||
Other non-current assets | 117 | 735 | 1,174 | (825 | ) | 1,201 | |||||||||||||||
Investment in subsidiary | 10,398 | 10,208 | — | (20,606 | ) | — | |||||||||||||||
TOTAL ASSETS | $ | 10,824 | $ | 15,423 | $ | 35,859 | $ | (31,620 | ) | $ | 30,486 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Fiduciary liabilities | $ | — | $ | — | $ | 12,214 | $ | — | $ | 12,214 | |||||||||||
Short-term debt and current portion of long-term debt | — | 429 | 23 | — | 452 | ||||||||||||||||
Accounts payable and accrued liabilities | 10 | 71 | 1,811 | (39 | ) | 1,853 | |||||||||||||||
Intercompany payables | 51 | 2,637 | 2,162 | (4,850 | ) | — | |||||||||||||||
Other current liabilities | — | 49 | 779 | 3 | 831 | ||||||||||||||||
Total Current Liabilities | 61 | 3,186 | 16,989 | (4,886 | ) | 15,350 | |||||||||||||||
Long-term debt | 107 | 2,515 | 1,091 | — | 3,713 | ||||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,294 | 982 | — | 2,276 | ||||||||||||||||
Intercompany payables | 2,890 | 166 | 2,247 | (5,303 | ) | — | |||||||||||||||
Other non-current liabilities | 4 | 254 | 1,909 | (825 | ) | 1,342 | |||||||||||||||
TOTAL LIABILITIES | 3,062 | 7,415 | 23,218 | (11,014 | ) | 22,681 | |||||||||||||||
TOTAL AON SHAREHOLDERS’ EQUITY | 7,762 | 8,008 | 12,598 | (20,606 | ) | 7,762 | |||||||||||||||
Noncontrolling interests | — | — | 43 | — | 43 | ||||||||||||||||
TOTAL EQUITY | 7,762 | 8,008 | 12,641 | (20,606 | ) | 7,805 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 10,824 | $ | 15,423 | $ | 35,859 | $ | (31,620 | ) | $ | 30,486 | ||||||||||
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
Aon | Aon | Other | Consolidating | ||||||||||||||||||
Non-Guarantor | |||||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | (14 | ) | $ | (195 | ) | $ | 1,193 | $ | — | $ | 984 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||
Sales of long-term investments | — | 8 | 73 | — | 81 | ||||||||||||||||
Purchase of long-term investments | — | (13 | ) | — | — | (13 | ) | ||||||||||||||
Net (purchases) sales of short-term investments - non-fiduciary | — | (35 | ) | 22 | — | (13 | ) | ||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (26 | ) | — | (26 | ) | ||||||||||||||
Proceeds from sale of businesses | — | — | 6 | — | 6 | ||||||||||||||||
Capital expenditures | — | — | (174 | ) | — | (174 | ) | ||||||||||||||
CASH USED FOR INVESTING ACTIVITIES | — | (40 | ) | (99 | ) | — | (139 | ) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||
Share repurchase | (1,025 | ) | — | — | — | (1,025 | ) | ||||||||||||||
Advances from (to) affiliates | 405 | 610 | (1,014 | ) | (1 | ) | — | ||||||||||||||
Issuance of shares for employee benefit plans | 84 | — | — | — | 84 | ||||||||||||||||
Issuance of debt | 1,145 | 2,894 | 231 | — | 4,270 | ||||||||||||||||
Repayment of debt | (449 | ) | (3,177 | ) | (244 | ) | — | (3,870 | ) | ||||||||||||
Cash dividends to shareholders | (159 | ) | — | — | — | (159 | ) | ||||||||||||||
Purchase of shares from noncontrolling interests | — | — | (6 | ) | — | (6 | ) | ||||||||||||||
Dividends paid to noncontrolling interests | — | — | (13 | ) | — | (13 | ) | ||||||||||||||
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | 1 | 327 | (1,046 | ) | (1 | ) | (719 | ) | |||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (48 | ) | — | (48 | ) | ||||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (13 | ) | 92 | — | (1 | ) | 78 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 131 | 199 | — | (39 | ) | 291 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 118 | $ | 291 | $ | — | $ | (40 | ) | $ | 369 | ||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ | (46 | ) | $ | (189 | ) | $ | 1,102 | $ | — | $ | 867 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||
Sales of long-term investments | — | 79 | 92 | — | 171 | ||||||||||||||||
Purchase of long-term investments | — | (9 | ) | — | — | (9 | ) | ||||||||||||||
Net (purchases) sales of short-term investments - non-fiduciary | (16 | ) | 61 | 21 | — | 66 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | (55 | ) | (42 | ) | — | (97 | ) | |||||||||||||
Proceeds from sale of businesses | — | — | 2 | — | 2 | ||||||||||||||||
Capital expenditures | — | — | (201 | ) | — | (201 | ) | ||||||||||||||
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | (16 | ) | 76 | (128 | ) | — | (68 | ) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||
Share repurchase | (525 | ) | (100 | ) | — | — | (625 | ) | |||||||||||||
Advances from (to) affiliates | 648 | 376 | (1,024 | ) | — | — | |||||||||||||||
Issuance of shares for employee benefit plans | 44 | 49 | — | — | 93 | ||||||||||||||||
Issuance of debt | — | 332 | 1 | — | 333 | ||||||||||||||||
Repayment of debt | — | (416 | ) | (11 | ) | — | (427 | ) | |||||||||||||
Cash dividends to shareholders | (104 | ) | (49 | ) | — | — | (153 | ) | |||||||||||||
Purchase of shares from noncontrolling interests | — | — | — | — | — | ||||||||||||||||
Dividends paid to noncontrolling interests | — | — | (17 | ) | — | (17 | ) | ||||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 63 | 192 | (1,051 | ) | — | (796 | ) | ||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | 15 | — | 15 | ||||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1 | 79 | (62 | ) | — | 18 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | — | (21 | ) | 293 | — | 272 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 1 | $ | 58 | $ | 231 | $ | — | $ | 290 | |||||||||||
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Details) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
USD ($) | GBP (£) | USD ($) | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |||
Short-term investment, minimum maturity period | 3 months | 3 months | |
Short-term investment, maximum maturity period | 1 year | 1 year | |
Operating funds in U.K. | $124 | £ 77 | $124 |
Cash and cash equivalents, restricted | $88 | $76 |
Other_Income_Expense_Details
Other Income (Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other (Expense) Income | ||||
Equity earnings | $6 | $0 | $12 | $8 |
Gains on investments | 37 | 9 | 36 | 11 |
Foreign currency remeasurement (losses) gains | -4 | -24 | 15 | -24 |
Derivative gains (losses) | 1 | 8 | -8 | 8 |
Other | -1 | -2 | -1 | 0 |
Other Income | $39 | ($9) | $54 | $3 |
Acquisitions_and_Dispositions_1
Acquisitions and Dispositions (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
business | business | ||
Intangible assets: | |||
Goodwill | $8,958 | $8,943 | |
HR Solutions [Member] | |||
Business Acquisition | |||
Number of business acquired under business combination | 2 | 2 | |
Intangible assets: | |||
Goodwill | 2,976 | 2,961 | |
Risk Solutions [Member] | |||
Business Acquisition | |||
Number of business acquired under business combination | 5 | 4 | |
Intangible assets: | |||
Goodwill | 5,982 | 5,982 | |
Business Acquisition 1 [Member] | |||
Business Acquisition | |||
Consideration | 26 | 110 | |
Intangible assets: | |||
Goodwill | 26 | 60 | |
Other intangible assets | 8 | 56 | |
Total | $34 | 116 |
Acquisitions_and_Dispositions_2
Acquisitions and Dispositions (Details 2) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
business | business | |
Risk Solutions [Member] | ||
Dispositions | ||
Number of dispositions | 5 | 2 |
Gain (loss) recognized on sale | $0.20 | |
HR Solutions [Member] | ||
Dispositions | ||
Number of dispositions | 1 | |
Gain (loss) recognized on sale | 1 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Changes in the net carrying amount of goodwill by operating segment (in millions) | |
Balance as of December 31, 2012 | $8,943 |
Goodwill related to current year acquisitions | 26 |
Goodwill related to disposals | -3 |
Goodwill related to prior year acquisitions | 15 |
Foreign currency translation | -23 |
Balance as of September 30, 2013 | 8,958 |
Risk Solutions [Member] | |
Changes in the net carrying amount of goodwill by operating segment (in millions) | |
Balance as of December 31, 2012 | 5,982 |
Goodwill related to current year acquisitions | 24 |
Goodwill related to disposals | -3 |
Goodwill related to prior year acquisitions | -2 |
Foreign currency translation | -19 |
Balance as of September 30, 2013 | 5,982 |
HR Solutions [Member] | |
Changes in the net carrying amount of goodwill by operating segment (in millions) | |
Balance as of December 31, 2012 | 2,961 |
Goodwill related to current year acquisitions | 2 |
Goodwill related to disposals | 0 |
Goodwill related to prior year acquisitions | 17 |
Foreign currency translation | -4 |
Balance as of September 30, 2013 | $2,976 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Goodwill and Intangible Assets | ||||||||
Tradenames | $1,025 | $1,025 | $1,025 | |||||
Intangible assets with finite lives | ||||||||
Intangible assets with finite lives, Gross Carrying Amount | 4,322 | 4,322 | 4,358 | |||||
Intangible assets with finite lives, Accumulated Amortization | 1,665 | 1,665 | 1,383 | |||||
Intangible assets, Net Carrying Amount | 2,657 | 2,657 | 2,975 | |||||
Amortization expense on intangible assets | 98 | 105 | 296 | 313 | ||||
Estimated amortization for intangible assets | ||||||||
Remainder of 2013 | 98 | 98 | ||||||
2014 | 338 | 338 | ||||||
2015 | 291 | 291 | ||||||
2016 | 244 | 244 | ||||||
2017 | 196 | 196 | ||||||
Thereafter | 465 | 465 | ||||||
Estimated future amortization for intangible assets | 1,632 | 1,632 | ||||||
HR Solutions [Member] | ||||||||
Estimated amortization for intangible assets | ||||||||
Remainder of 2013 | 70 | 70 | ||||||
2014 | 243 | 243 | ||||||
2015 | 212 | 212 | ||||||
2016 | 177 | 177 | ||||||
2017 | 140 | 140 | ||||||
Thereafter | 342 | 342 | ||||||
Estimated future amortization for intangible assets | 1,184 | 1,184 | ||||||
Risk Solutions [Member] | ||||||||
Estimated amortization for intangible assets | ||||||||
Remainder of 2013 | 28 | 28 | ||||||
2014 | 95 | 95 | ||||||
2015 | 79 | 79 | ||||||
2016 | 67 | 67 | ||||||
2017 | 56 | 56 | ||||||
Thereafter | 123 | 123 | ||||||
Estimated future amortization for intangible assets | 448 | 448 | ||||||
Customer related and contract based [Member] | ||||||||
Intangible assets with finite lives | ||||||||
Intangible assets with finite lives, Gross Carrying Amount | 2,686 | 2,686 | 2,714 | |||||
Intangible assets with finite lives, Accumulated Amortization | 1,218 | 1,218 | 969 | |||||
Intangible assets, Net Carrying Amount | 1,468 | 1,468 | 1,745 | |||||
Marketing, technology and other [Member] | ||||||||
Intangible assets with finite lives | ||||||||
Intangible assets with finite lives, Gross Carrying Amount | 611 | [1] | 611 | [1] | 619 | [1] | ||
Intangible assets with finite lives, Accumulated Amortization | 447 | [1] | 447 | [1] | 414 | [1] | ||
Intangible assets, Net Carrying Amount | $164 | [1] | $164 | [1] | $205 | [1] | ||
[1] | Tradenames with finite lives disclosed separately in prior years are now presented in Marketing, technology and other |
Restructuring_Details
Restructuring (Details) (Aon Hewitt Plan [Member], USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 36 Months Ended | ||||||||||
In Millions, unless otherwise specified | Oct. 14, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | ||||||
job_elimination | |||||||||||||||
Restructuring and Related Cost | |||||||||||||||
Number of jobs eliminated to date under the plan | 2,660 | ||||||||||||||
Estimated Total Cost for Restructuring Period | $411 | $411 | [1],[2] | ||||||||||||
Restructuring and related charges | 30 | 32 | 109 | 57 | 364 | [1] | |||||||||
Expensed | 30 | [1] | 109 | [1] | 98 | [1] | 105 | [1] | 52 | [1] | |||||
Restructuring charges reclassified from the HR Solutions segment to the Risk Solutions segment | 41 | ||||||||||||||
HR Solutions [Member] | |||||||||||||||
Restructuring and Related Cost | |||||||||||||||
Estimated Total Cost for Restructuring Period | 244 | [1] | |||||||||||||
Restructuring and related charges | 224 | ||||||||||||||
Expensed | 6 | 57 | 66 | 49 | 52 | ||||||||||
Risk Solutions [Member] | |||||||||||||||
Restructuring and Related Cost | |||||||||||||||
Estimated Total Cost for Restructuring Period | 167 | [1] | |||||||||||||
Restructuring and related charges | 140 | ||||||||||||||
Expensed | 24 | 52 | 32 | 56 | 0 | ||||||||||
Workforce reduction [Member] | |||||||||||||||
Restructuring and Related Cost | |||||||||||||||
Estimated Total Cost for Restructuring Period | 261 | 261 | [2] | ||||||||||||
Restructuring and related charges | 237 | ||||||||||||||
Expensed | 12 | 50 | 74 | 64 | 49 | ||||||||||
Workforce reduction [Member] | Minimum [Member] | |||||||||||||||
Restructuring and Related Cost | |||||||||||||||
Number of jobs eliminated to date under the plan | 2,900 | ||||||||||||||
Real estate lease rationalization [Member] | |||||||||||||||
Restructuring and Related Cost | |||||||||||||||
Estimated Total Cost for Restructuring Period | 150 | ||||||||||||||
Lease consolidation [Member] | |||||||||||||||
Restructuring and Related Cost | |||||||||||||||
Estimated Total Cost for Restructuring Period | 128 | [2] | |||||||||||||
Restructuring and related charges | 106 | ||||||||||||||
Expensed | 17 | 53 | 18 | 32 | 3 | ||||||||||
Asset impairments [Member] | |||||||||||||||
Restructuring and Related Cost | |||||||||||||||
Estimated Total Cost for Restructuring Period | 15 | [2] | |||||||||||||
Restructuring and related charges | 14 | ||||||||||||||
Expensed | 0 | 3 | 4 | 7 | 0 | ||||||||||
Other costs associated with restructuring [Member] | |||||||||||||||
Restructuring and Related Cost | |||||||||||||||
Estimated Total Cost for Restructuring Period | 7 | [2],[3] | |||||||||||||
Restructuring and related charges | 7 | [3] | |||||||||||||
Expensed | $1 | [3] | $3 | [3] | $2 | [3] | $2 | [3] | $0 | [3] | |||||
[1] | Costs included in the Risk Solutions segment are associated with the transfer of the health and benefits consulting business from HR Solutions to Risk Solutions effective January 1, 2012. Costs incurred in 2011 in the HR Solutions segment of $41 million related to the health and benefits consulting business have been reclassified and presented in the Risk Solutions segment. | ||||||||||||||
[2] | Actual costs, when incurred, will vary due to changes in the assumptions built into this plan. Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives. | ||||||||||||||
[3] | Other costs associated with restructuring initiatives, including moving costs and consulting and legal fees, are recognized when incurred. |
Restructuring_Details_2
Restructuring (Details 2) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | |
Restructuring Reserve | ||
Balance at December 31, 2012 | $137 | |
Expensed | 106 | |
Cash payments | -113 | |
Foreign exchange translation and other | 13 | |
Balance at September 30, 2013 (1) | 143 | [1] |
Aon Hewitt Plan [Member] | ||
Restructuring Reserve | ||
Balance at December 31, 2012 | 96 | |
Expensed | 106 | |
Cash payments | -91 | |
Foreign exchange translation and other | 7 | |
Balance at September 30, 2013 (1) | 118 | [1] |
Aon Benfield Plan [Member] | ||
Restructuring Reserve | ||
Balance at December 31, 2012 | 3 | |
Expensed | 0 | |
Cash payments | -1 | |
Foreign exchange translation and other | 0 | |
Balance at September 30, 2013 (1) | 2 | [1] |
2007 Plan [Member] | ||
Restructuring Reserve | ||
Balance at December 31, 2012 | 35 | |
Expensed | 0 | |
Cash payments | -20 | |
Foreign exchange translation and other | 6 | |
Balance at September 30, 2013 (1) | 21 | [1] |
Other [Member] | ||
Restructuring Reserve | ||
Balance at December 31, 2012 | 3 | |
Expensed | 0 | |
Cash payments | -1 | |
Foreign exchange translation and other | 0 | |
Balance at September 30, 2013 (1) | $2 | [1] |
[1] | Included within Accounts payable and accrued liabilities and Other non-current liabilities |
Investments_Details
Investments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | ||||||
Interest-bearing Assets | ||||||
Cash and cash equivalents | $369 | $291 | $290 | $272 | ||
Short-term investments | 357 | 346 | ||||
Fiduciary assets | 4,335 | [1] | 4,029 | [1] | ||
Investments | 139 | 165 | ||||
Total interest-bearing assets | 5,200 | 4,831 | ||||
Investments: | ||||||
Equity method investments | 113 | 102 | ||||
Other investments | 17 | [2] | 43 | [2] | ||
Fixed-maturity securities | 9 | [3] | 20 | [3] | ||
Investments | $139 | $165 | ||||
[1] | Fiduciary assets include funds held on behalf of clients but does not include fiduciary receivables. | |||||
[2] | The reduction in other investments is due to the sale of certain equity securities | |||||
[3] | The reduction in fixed-maturity securities is due to the repayment in full of a security |
Debt_Details
Debt (Details) | Sep. 30, 2013 | 8-May-13 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 15, 2013 | Mar. 08, 2013 | Dec. 12, 2012 | 21-May-13 |
USD ($) | EUR (€) | USD ($) | Commercial paper [Member] | Commercial paper [Member] | Commercial paper [Member] | Securities Due July 2014 [Member] | Securities Due July 2014 [Member] | 4.250% Senior notes due 2042 [Member] | 4.250% Senior notes due 2042 [Member] | 4.250% Senior notes due 2042 [Member] | 4.45% notes due 2043 [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | ||||
Debt Instrument | ||||||||||||
Total debt | $511,000,000 | $511,000,000 | $50,000,000 | |||||||||
Weighted average commercial paper outstanding | 524,000,000 | 349,000,000 | ||||||||||
Weighted-average interest rates (as a percent) | 0.33% | 0.35% | ||||||||||
Short-term debt and current portion of long-term debt | 1,206,000,000 | 452,000,000 | 674,000,000 | 500,000,000 | ||||||||
Face amount of debt | 256,000,000 | 90,000,000 | 250,000,000 | |||||||||
Stated interest rate | 4.25% | 4.25% | 4.25% | 4.45% | ||||||||
Short-term debt aggregate principal amount | 166,000,000 | |||||||||||
Credit facility maximum borrowing amount | € 650,000,000 |
Shareholders_Equity_Schedule_o
Shareholders' Equity Schedule of Net Income from Participating Securities (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income from participating securities | $3 | $2 | $8 | $8 |
Continuing Operations [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income from participating securities | 3 | 2 | 8 | 8 |
Discontinued Operations [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income from participating securities | $0 | $0 | $0 | $0 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 18 Months Ended | ||||||
Share data in Millions, except Per Share data, unless otherwise specified | Apr. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | ||||
Common Stock Programs | ||||||||||
Total cost of shares purchased | $1,025,000,000 | |||||||||
Weighted average shares outstanding | ||||||||||
Shares for basic earnings per share | 309.5 | [1] | 327.3 | [1] | 313.2 | [1] | 330.6 | [1] | ||
Common stock equivalents (in shares) | 3.4 | 3.7 | 3.5 | 3.8 | ||||||
Shares for diluted earnings per share | 312.9 | 331 | 316.7 | 334.4 | ||||||
Number of participating securities (in shares) | 3.8 | 4.5 | 4 | 4.7 | ||||||
Number of shares excluded from the calculation of diluted earnings per share | 0 | 0.1 | 0 | 0.1 | ||||||
2012 - Share Repurchase Program [Member] | ||||||||||
Common Stock Programs | ||||||||||
Share repurchase authorization limit | 5,000,000,000 | |||||||||
Shares purchased (in shares) | 7.3 | 5.4 | 15.8 | 12.7 | 35.3 | |||||
Average price per share of stock repurchased | $68.33 | $51.37 | $64.79 | $49.22 | ||||||
Total cost of shares purchased | 500,000,000 | 275,000,000 | 1,000,000,000 | 625,000,000 | 2,000,000,000 | |||||
Share repurchase, remaining authorization limit | $3,000,000,000 | |||||||||
[1] | Includes 3.8 million and 4.5 million of participating securities for the three months ended September 30, 2013 and 2012, respectively, and 4.0 million and 4.7 million of participating securities for the nine months ended September 30, 2013 and 2012, respectively. |
Shareholders_Equity_Details_2
Shareholders' Equity (Details 2) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2012 | ($2,610) | |
Other comprehensive income (loss) before reclassifications, net | -94 | |
Amounts reclassified from accumulated other comprehensive loss: | ||
Amounts reclassified from accumulated other comprehensive loss | 100 | |
Tax benefit | -32 | |
Amounts reclassified from accumulated other comprehensive loss, net | 68 | |
Net current period other comprehensive (loss) income | -26 | |
Balance at September 30, 2013 | -2,636 | |
Change in Fair Value of Investments [Member] | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2012 | 0 | [1] |
Other comprehensive income (loss) before reclassifications, net | 12 | [1] |
Amounts reclassified from accumulated other comprehensive loss: | ||
Amounts reclassified from accumulated other comprehensive loss | -20 | [1] |
Tax benefit | 7 | [1] |
Amounts reclassified from accumulated other comprehensive loss, net | -13 | [1] |
Net current period other comprehensive (loss) income | -1 | [1] |
Balance at September 30, 2013 | -1 | [1] |
Change in Fair Value of Derivatives [Member] | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2012 | -28 | [1] |
Other comprehensive income (loss) before reclassifications, net | -24 | [1] |
Amounts reclassified from accumulated other comprehensive loss: | ||
Amounts reclassified from accumulated other comprehensive loss | 20 | [1] |
Tax benefit | -8 | [1] |
Amounts reclassified from accumulated other comprehensive loss, net | 12 | [1] |
Net current period other comprehensive (loss) income | -12 | [1] |
Balance at September 30, 2013 | -40 | [1] |
Foreign Currency Translation Adjustments [Member] | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2012 | 233 | |
Other comprehensive income (loss) before reclassifications, net | -78 | |
Amounts reclassified from accumulated other comprehensive loss: | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Tax benefit | 0 | |
Amounts reclassified from accumulated other comprehensive loss, net | 0 | |
Net current period other comprehensive (loss) income | -78 | |
Balance at September 30, 2013 | 155 | |
Post-Retirement Benefit Obligation [Member] | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2012 | -2,815 | [2] |
Other comprehensive income (loss) before reclassifications, net | -4 | [2] |
Amounts reclassified from accumulated other comprehensive loss: | ||
Amounts reclassified from accumulated other comprehensive loss | 100 | [2] |
Tax benefit | -31 | [2] |
Amounts reclassified from accumulated other comprehensive loss, net | 69 | [2] |
Net current period other comprehensive (loss) income | 65 | [2] |
Balance at September 30, 2013 | ($2,750) | [2] |
[1] | Reclassifications from Accumulated other comprehensive loss are recorded in Other income | |
[2] | Reclassifications from Accumulated other comprehensive loss are recorded in Compensation and benefits |
Employee_Benefits_Details
Employee Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
U.K. and Non-U.S. Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $5 | $4 | $14 | $12 |
Interest cost | 63 | 66 | 189 | 198 |
Expected return on plan assets | -89 | -80 | -267 | -241 |
Amortization of net actuarial loss | 18 | 15 | 55 | 44 |
Net periodic (benefit) cost | -3 | 5 | -9 | 13 |
Estimate of contributions to defined benefit pension plans for the current fiscal year | 381 | 381 | ||
Contributions made to defined benefit pension plans | 59 | 290 | ||
U.S. Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 28 | 29 | 84 | 89 |
Expected return on plan assets | -34 | -31 | -103 | -95 |
Amortization of net actuarial loss | 13 | 10 | 39 | 32 |
Net periodic (benefit) cost | 7 | 8 | 20 | 26 |
Estimate of contributions to defined benefit pension plans for the current fiscal year | 167 | 167 | ||
Contributions made to defined benefit pension plans | $54 | $122 |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Share-based compensation expense | $70 | $55 | $207 | $160 | ||||||||
Restricted stock units (“RSUsâ€) [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Share-based compensation expense | 40 | 37 | 135 | 120 | ||||||||
Non-vested share awards | ||||||||||||
Non-vested at beginning of period (in shares) | 10,432 | 9,916 | 9,916 | |||||||||
Granted (in shares) | 3,598 | 4,888 | ||||||||||
Vested (in shares) | -3,618 | -3,343 | ||||||||||
Forfeited (in shares) | -308 | -516 | ||||||||||
Non-vested at end of period (in shares) | 10,104 | 10,945 | 10,104 | 10,945 | ||||||||
Weighted Average Fair value | ||||||||||||
Non-vested at beginning of period (in dollars per share) | $44 | [1] | $42 | [1] | $42 | [1] | ||||||
Granted (in dollars per share) | $62 | [1] | $46 | [1] | ||||||||
Vested (in dollars per share) | $44 | [1] | $42 | [1] | ||||||||
Forfeited (in dollars per share) | $47 | [1] | $44 | [1] | ||||||||
Non-vested at end of period (in dollars per share) | $51 | [1] | $44 | [1] | $51 | [1] | $44 | [1] | ||||
Target PSAs granted | 3,598 | 4,888 | ||||||||||
Fair value | $62 | [1] | $46 | [1] | ||||||||
Performance share awards (“PSAsâ€) [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Share-based compensation expense | 28 | 15 | 66 | 30 | ||||||||
Non-vested share awards | ||||||||||||
Granted (in shares) | 1,135 | 1,369 | 1,715 | |||||||||
Weighted Average Fair value | ||||||||||||
Granted (in dollars per share) | $58 | [2] | $47 | [2] | $50 | [2] | ||||||
Target PSAs granted | 1,135 | 1,369 | 1,715 | |||||||||
Fair value | $58 | [2] | $47 | [2] | $50 | [2] | ||||||
Number of shares that would be issued based on current performance levels | 1,135 | 2,232 | 1,386 | |||||||||
Unamortized expense, based on current performance levels | 53 | 53 | 46 | 5 | ||||||||
Stock options [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Share-based compensation expense | 0 | 1 | 1 | 4 | ||||||||
Employee stock purchase plans [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||
Share-based compensation expense | $2 | $2 | $5 | $6 | ||||||||
Minimum [Member] | Performance share awards (“PSAsâ€) [Member] | ||||||||||||
Weighted Average Fair value | ||||||||||||
Vesting conditions period | 1 year | |||||||||||
Percent of shares issued | 0.00% | 0.00% | ||||||||||
Maximum [Member] | Performance share awards (“PSAsâ€) [Member] | ||||||||||||
Weighted Average Fair value | ||||||||||||
Vesting conditions period | 5 years | |||||||||||
Percent of shares issued | 200.00% | 200.00% | ||||||||||
[1] | Represents per share weighted average fair value of award at date of grant | |||||||||||
[2] | Represents per share weighted average fair value of award at date of grant. |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans (Details 2) (Stock options [Member], USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Stock options [Member] | ||
Share Options | ||
Outstanding at beginning of period (in shares) | 5,611 | 9,116 |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | -1,694 | -2,570 |
Forfeited and expired (in shares) | -29 | -67 |
Outstanding at end of period (in shares) | 3,888 | 6,479 |
Exercisable at end of period (in shares) | 3,681 | 5,969 |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $32 | $32 |
Granted (in dollars per share) | $0 | |
Exercised (in dollars per share) | $32 | $31 |
Forfeited and expired (in dollars per share) | $34 | $37 |
Outstanding at end of period (in dollars per share) | $32 | $32 |
Exercisable at end of period (in dollars per share) | $32 | $31 |
Weighted average remaining contractual life of share options outstanding (in years) | 2 years 2 months 24 days | 2 years 9 months 18 days |
ShareBased_Compensation_Plans_3
Share-Based Compensation Plans (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Closing share price (in dollars per share) | $74.44 | $74.44 | ||
Aggregate intrinsic value of options outstanding | $163 | $163 | ||
Aggregate intrinsic value of exercisable options outstanding | 156 | 156 | ||
Aggregate intrinsic value of stock options exercised | 14 | 23 | 53 | 47 |
Cash received from the exercise of stock options | 14 | 29 | 55 | 80 |
Tax benefit realized from the exercise of stock options | 3 | 5 | 10 | 8 |
Unamortized deferred compensation expense | $373 | $373 | ||
Remaining weighted-average amortization period (in years) | 2 years 1 month 12 days |
Derivatives_and_Hedging_Detail
Derivatives and Hedging (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Cash flow hedges [Member] | |
Foreign Exchange Risk Management | |
Foreign currency exposures, maximum average hedging period | 2 years |
Foreign currency exposures, maximum hedging period | 5 years |
Interest Rate Risk Management | |
Interest rate fluctuations, maximum hedging period | 2 years |
Net investment hedges [Member] | |
Foreign Exchange Risk Management | |
Foreign currency exposures, maximum hedging period | 2 years |
Not designated as hedging instrument [Member] | |
Foreign Exchange Risk Management | |
Foreign currency exposures, maximum hedging period | 1 year |
Derivatives_and_Hedging_Detail1
Derivatives and Hedging (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value | ||||
Notional Amount | $1,595 | $1,849 | ||
Derivative Assets | 65 | 210 | ||
Derivative Liabilities | 113 | 251 | ||
Gross Amounts Offset in the Statement of Financial Position | -26 | -160 | ||
Net Amounts of Assets Presented in the Statement of Financial Position | 39 | [1] | 50 | [1] |
Gross Amounts Offset in the Statement of Financial Position | -26 | -160 | ||
Net Amounts of Liabilities Presented in the Statement of Financial Position | 87 | [2] | 91 | [2] |
Derivatives accounted for as hedges [Member] | ||||
Derivatives, Fair Value | ||||
Notional Amount | 1,328 | 1,544 | ||
Derivative Assets | 64 | 208 | ||
Derivative Liabilities | 112 | 250 | ||
Gross Amounts Offset in the Statement of Financial Position | -25 | -160 | ||
Net Amounts of Assets Presented in the Statement of Financial Position | 39 | [1] | 48 | [1] |
Gross Amounts Offset in the Statement of Financial Position | -25 | -160 | ||
Net Amounts of Liabilities Presented in the Statement of Financial Position | 87 | [2] | 90 | [2] |
Interest rate contracts [Member] | Derivatives accounted for as hedges [Member] | ||||
Derivatives, Fair Value | ||||
Notional Amount | 169 | 336 | ||
Derivative Assets | 8 | 17 | ||
Derivative Liabilities | 0 | 0 | ||
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | ||
Net Amounts of Assets Presented in the Statement of Financial Position | 8 | [1] | 17 | [1] |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | ||
Net Amounts of Liabilities Presented in the Statement of Financial Position | 0 | [2] | 0 | [2] |
Foreign exchange contracts [Member] | Derivatives accounted for as hedges [Member] | ||||
Derivatives, Fair Value | ||||
Notional Amount | 1,159 | 1,208 | ||
Derivative Assets | 56 | 191 | ||
Derivative Liabilities | 112 | 250 | ||
Gross Amounts Offset in the Statement of Financial Position | -25 | -160 | ||
Net Amounts of Assets Presented in the Statement of Financial Position | 31 | [1] | 31 | [1] |
Gross Amounts Offset in the Statement of Financial Position | -25 | -160 | ||
Net Amounts of Liabilities Presented in the Statement of Financial Position | 87 | [2] | 90 | [2] |
Foreign exchange contracts [Member] | Derivatives not accounted for as hedges [Member] | ||||
Derivatives, Fair Value | ||||
Notional Amount | 267 | 305 | ||
Derivative Assets | 1 | 2 | ||
Derivative Liabilities | 1 | 1 | ||
Gross Amounts Offset in the Statement of Financial Position | -1 | 0 | ||
Net Amounts of Assets Presented in the Statement of Financial Position | 0 | [1] | 2 | [1] |
Gross Amounts Offset in the Statement of Financial Position | -1 | 0 | ||
Net Amounts of Liabilities Presented in the Statement of Financial Position | $0 | [2] | $1 | [2] |
[1] | Included within Other current assets or Other non-current assets | |||
[2] | Included within Other current liabilities or Other non-current liabilities |
Derivatives_and_Hedging_Detail2
Derivatives and Hedging (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Derivative Instruments, Gain (Loss) | ||||||||
Amount of Gain (Loss) Recognized in Income on Derivative | $1 | $8 | ($8) | $8 | ||||
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months | 27 | 27 | ||||||
Derivatives accounted for as hedges [Member] | Cash flow hedges [Member] | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Amount of Gain (Loss) recognized in Accumulated Other Comprehensive Loss | 0 | 16 | -28 | -14 | ||||
Amount of Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into income (effective portion) | -10 | -7 | -8 | -23 | ||||
Interest rate contracts [Member] | Derivatives accounted for as hedges [Member] | Cash flow hedges [Member] | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Amount of Gain (Loss) recognized in Accumulated Other Comprehensive Loss | 0 | 0 | 0 | 0 | ||||
Amount of Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into income (effective portion) | 0 | [1] | 0 | [1] | -1 | [2] | 0 | [2] |
Foreign exchange contracts [Member] | Derivatives accounted for as hedges [Member] | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Amount of Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into income (effective portion) | 0 | 0 | 0 | 0 | ||||
Foreign exchange contracts [Member] | Derivatives accounted for as hedges [Member] | Cash flow hedges [Member] | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Amount of Gain (Loss) recognized in Accumulated Other Comprehensive Loss | 0 | 16 | -28 | -14 | ||||
Amount of Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into income (effective portion) | -10 | [3] | -7 | [3] | -7 | [3] | -23 | [3] |
Foreign exchange contracts [Member] | Derivatives accounted for as hedges [Member] | Net Investment Hedges [Member] | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Amount of Gain (Loss) recognized in Accumulated Other Comprehensive Loss | 0 | 3 | 0 | 4 | ||||
Foreign exchange contracts [Member] | Derivatives accounted for as hedges [Member] | Fair value hedges | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Amount of Gain (Loss) Recognized in Income on Derivative | -7 | [4],[5] | -3 | [4],[5] | -8 | [4],[5] | 0 | [4],[5] |
Amount of Gain (Loss) Recognized in Income on Related Hedged Item | 7 | [4] | 3 | [4] | 8 | [4],[5] | 0 | [4],[5] |
Foreign exchange contracts [Member] | Derivatives not accounted for as hedges [Member] | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Amount of Gain (Loss) Recognized in Income on Derivative | $3 | $6 | ($15) | $12 | ||||
[1] | Included within Other current assets or Other non-current assets | |||||||
[2] | Included within Fiduciary investment income and Interest expense | |||||||
[3] | Included within Other income (expense) and Interest expense | |||||||
[4] | Included in Interest expense | |||||||
[5] | Relates to fixed rate debt |
Fair_Value_and_Financial_Instr2
Fair Value and Financial Instruments (Details) (USD $) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||||||||
Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||||||
Money market funds and highly liquid debt securities | Money market funds and highly liquid debt securities | Money market funds [Member] | Money market funds [Member] | Highly liquid debt securities [Member] | Highly liquid debt securities [Member] | Corporate bonds [Member] | Corporate bonds [Member] | Government bonds [Member] | Government bonds [Member] | Equity securities [Member] | Equity securities [Member] | Interest rate contracts [Member] | Interest rate contracts [Member] | Foreign exchange contracts [Member] | Foreign exchange contracts [Member] | Money market funds and highly liquid debt securities | Money market funds and highly liquid debt securities | Corporate bonds [Member] | Corporate bonds [Member] | Government bonds [Member] | Government bonds [Member] | Equity securities [Member] | Equity securities [Member] | Interest rate contracts [Member] | Interest rate contracts [Member] | Foreign exchange contracts [Member] | Foreign exchange contracts [Member] | Money market funds and highly liquid debt securities | Money market funds and highly liquid debt securities | Corporate bonds [Member] | Corporate bonds [Member] | Government bonds [Member] | Government bonds [Member] | Equity securities [Member] | Equity securities [Member] | Interest rate contracts [Member] | Interest rate contracts [Member] | Foreign exchange contracts [Member] | Foreign exchange contracts [Member] | Money market funds and highly liquid debt securities | Money market funds and highly liquid debt securities | Corporate bonds [Member] | Corporate bonds [Member] | Government bonds [Member] | Government bonds [Member] | Equity securities [Member] | Equity securities [Member] | Interest rate contracts [Member] | Interest rate contracts [Member] | Foreign exchange contracts [Member] | Foreign exchange contracts [Member] | ||||||||||
Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | ||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets value (in dollar per share) | $1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds and highly liquid debt securities | $2,098 | [1] | $2,133 | [2] | $2,073 | $2,108 | $25 | $25 | $2,073 | [1] | $2,108 | [2] | $25 | [1] | $25 | [2] | $0 | [1] | $0 | [2] | |||||||||||||||||||||||||||||||||||||||||
Other investments | 2 | 12 | 7 | 8 | 9 | 5 | 0 | 0 | 0 | 0 | 5 | 5 | 0 | 0 | 7 | 8 | 4 | 0 | 2 | 12 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Derivatives | 8 | 17 | 57 | 193 | 0 | 0 | 0 | 0 | 8 | 17 | 57 | 193 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | $113 | $251 | $0 | $0 | $113 | $251 | $0 | $0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Includes $2,073 million of money market funds and $25 million of highly liquid debt securities that are classified as Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. See Note 8 “Investments†for additional information regarding the Company’s investments. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Includes $2,108 million of money market funds and $25 million of highly liquid debt securities that are classified as Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. See Note 8 “Investments†for additional information regarding the Company’s investments. |
Fair_Value_and_Financial_Instr3
Fair Value and Financial Instruments (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | |||||
Unrealized gain | $0 | $0 | $0 | $0 | |
Realized gain (loss) | 6 | 0 | 6 | 0 | |
Fair value of financial instrument | |||||
Carrying value of total debt | 3,352 | 3,352 | 3,713 | ||
Fair value of total debt | $3,583 | $3,583 | $4,162 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-10 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 15, 2011 | Mar. 20, 2012 | Oct. 14, 2010 |
USD ($) | USD ($) | Opry Mills Mall Limited Partnership [Member] | Mazeikiu Nafta [Member] | Commitments to fund certain limited partnerships or subsidiaries [Member] | Commitments to fund certain limited partnerships or subsidiaries [Member] | Commitments to fund certain limited partnerships or subsidiaries [Member] | Commitments to fund certain limited partnerships or subsidiaries [Member] | Commitments to fund certain limited partnerships or subsidiaries [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | Subsidiaries [Member] | Subsidiaries [Member] | Subsidiaries [Member] | |||
Term Credit Agreement [Member] | Five-Year Agreement [Member] | Euro Facility Agreement [Member] | |||||||
USD ($) | USD ($) | EUR (€) | |||||||
Legal, Guarantees and Indemnifications | |||||||||
Damages sought | $200,000,000 | $125,000,000 | |||||||
Amount of coverage for damages contended by the insurers | 50,000,000 | ||||||||
Difference amount of damages sought by the client | 150,000,000 | ||||||||
Maximum potential funding under commitments | 81,000,000 | 104,000,000 | 35,000,000 | 35,000,000 | 450,000,000 | 400,000,000 | 650,000,000 | ||
Term of credit agreement | 5 years | ||||||||
Letters of credit outstanding | 71,000,000 | 74,000,000 | |||||||
Commitments funded | $7,000,000 | $13,000,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
segment | ||||
Segment Reporting Information | ||||
Number of reportable segments | 2 | |||
Total revenue | $2,794 | $2,737 | $8,606 | $8,399 |
Total commissions, fees and other revenue | 2,786 | 2,726 | 8,585 | 8,368 |
Total fiduciary investment income | 8 | 11 | 21 | 31 |
Operating income before income tax | 364 | 339 | 1,156 | 1,135 |
Interest income | 3 | 1 | 6 | 6 |
Interest expense | -53 | -57 | -153 | -173 |
Other income (expense) | 39 | -9 | 54 | 3 |
Income from continuing operations before income taxes | 353 | 274 | 1,063 | 971 |
Total operating segments [Member] | ||||
Segment Reporting Information | ||||
Operating income before income tax | 408 | 389 | 1,289 | 1,270 |
Risk Solutions [Member] | ||||
Segment Reporting Information | ||||
Total revenue | 1,821 | 1,778 | 5,736 | 5,582 |
Total commissions, fees and other revenue | 1,813 | 1,767 | 5,715 | 5,551 |
Total fiduciary investment income | 8 | 11 | 21 | 31 |
Operating income before income tax | 333 | 309 | 1,127 | 1,059 |
Retail brokerage | ||||
Segment Reporting Information | ||||
Total commissions, fees and other revenue | 1,424 | 1,390 | 4,548 | 4,395 |
Reinsurance brokerage | ||||
Segment Reporting Information | ||||
Total commissions, fees and other revenue | 389 | 377 | 1,167 | 1,156 |
HR Solutions [Member] | ||||
Segment Reporting Information | ||||
Total revenue | 981 | 971 | 2,891 | 2,847 |
Total commissions, fees and other revenue | 981 | 971 | 2,891 | 2,847 |
Total fiduciary investment income | 0 | 0 | 0 | 0 |
Operating income before income tax | 75 | 80 | 162 | 211 |
Consulting services | ||||
Segment Reporting Information | ||||
Total commissions, fees and other revenue | 406 | 394 | 1,176 | 1,140 |
Outsourcing | ||||
Segment Reporting Information | ||||
Total commissions, fees and other revenue | 587 | 585 | 1,746 | 1,723 |
Intrasegment | ||||
Segment Reporting Information | ||||
Total commissions, fees and other revenue | -12 | -8 | -31 | -16 |
Intersegment elimination | ||||
Segment Reporting Information | ||||
Total revenue | -8 | -12 | -21 | -30 |
Total commissions, fees and other revenue | -8 | -12 | -21 | -30 |
Unallocated Expense | ||||
Segment Reporting Information | ||||
Operating income before income tax | ($44) | ($50) | ($133) | ($135) |
Guarantee_of_Registered_Securi2
Guarantee of Registered Securities Guarantee of Registered Securities (Narrative) (Details) | Sep. 30, 2013 |
Aon plc [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Parent company's percentage ownership of guarantors | 100.00% |
3.50% senior notes due September 2015 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate | 3.50% |
3.125% Senior notes due 2016 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate | 3.13% |
5.00% Senior notes due September 2020 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate | 5.00% |
8.205% Junior subordinated deferrable interest debentures due January 2027 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate | 8.21% |
6.25% Senior notes due September 2040 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate | 6.25% |
4.250% Senior notes due 2042 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate | 4.25% |
4.45% notes due 2043 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate | 4.45% |
Guarantee_of_Registered_Securi3
Guarantee of Registered Securities - Condensed Consolidating Statement of Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue | ||||
Commissions, fees and other | $2,786 | $2,726 | $8,585 | $8,368 |
Fiduciary investment income | 8 | 11 | 21 | 31 |
Total revenue | 2,794 | 2,737 | 8,606 | 8,399 |
Expenses | ||||
Compensation and benefits | 1,666 | 1,620 | 5,103 | 4,920 |
Other general expenses | 764 | 778 | 2,347 | 2,344 |
Total operating expenses | 2,430 | 2,398 | 7,450 | 7,264 |
Operating income | 364 | 339 | 1,156 | 1,135 |
Interest income | 3 | 1 | 6 | 6 |
Interest expense | -53 | -57 | -153 | -173 |
Intercompany interest income (expense) | 0 | 0 | 0 | 0 |
Other income (expense) | 39 | -9 | 54 | 3 |
Income from continuing operations before income taxes | 353 | 274 | 1,063 | 971 |
Income tax (benefit) expense | 89 | 64 | 275 | 257 |
Income from continuing operations | 264 | 210 | 788 | 714 |
Loss from discontinued operations before income taxes | 0 | 0 | 0 | -1 |
Income taxes | 0 | 0 | 0 | 0 |
Loss from discontinued operations | 0 | 0 | 0 | -1 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income | 264 | 210 | 788 | 713 |
Less: Net income attributable to noncontrolling interests | 8 | 6 | 30 | 25 |
Net income attributable to Aon shareholders | 256 | 204 | 758 | 688 |
Aon plc [Member] | ||||
Revenue | ||||
Commissions, fees and other | 1 | 0 | 2 | 0 |
Fiduciary investment income | 0 | 0 | 0 | 0 |
Total revenue | 1 | 0 | 2 | 0 |
Expenses | ||||
Compensation and benefits | 11 | 4 | 27 | 0 |
Other general expenses | 0 | 19 | 14 | 20 |
Total operating expenses | 11 | 23 | 41 | 20 |
Operating income | -10 | -23 | -39 | -20 |
Interest income | 0 | 0 | 1 | 0 |
Interest expense | -6 | 0 | -12 | 0 |
Intercompany interest income (expense) | 25 | -8 | 11 | -11 |
Other income (expense) | 0 | 0 | 0 | 0 |
Income from continuing operations before income taxes | 9 | -31 | -39 | -31 |
Income tax (benefit) expense | -2 | -3 | -11 | -4 |
Income from continuing operations | 11 | -28 | -28 | -27 |
Loss from discontinued operations before income taxes | 0 | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 | 0 |
Loss from discontinued operations | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | 245 | 232 | 786 | 715 |
Net income | 256 | 204 | 758 | 688 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Aon shareholders | 256 | 204 | 758 | 688 |
Aon Corporation [Member] | ||||
Revenue | ||||
Commissions, fees and other | 0 | 0 | 0 | 0 |
Fiduciary investment income | 0 | 0 | 0 | 1 |
Total revenue | 0 | 0 | 0 | 1 |
Expenses | ||||
Compensation and benefits | 14 | -5 | 34 | 31 |
Other general expenses | 5 | 6 | 29 | 27 |
Total operating expenses | 19 | 1 | 63 | 58 |
Operating income | -19 | -1 | -63 | -57 |
Interest income | 1 | 0 | 2 | 1 |
Interest expense | -39 | -45 | -106 | -125 |
Intercompany interest income (expense) | 11 | 48 | 96 | 141 |
Other income (expense) | 13 | 10 | 10 | 13 |
Income from continuing operations before income taxes | -33 | 12 | -61 | -27 |
Income tax (benefit) expense | -14 | 16 | -24 | -11 |
Income from continuing operations | -19 | -4 | -37 | -16 |
Loss from discontinued operations before income taxes | 0 | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 | 0 |
Loss from discontinued operations | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | 127 | 186 | 617 | 598 |
Net income | 108 | 182 | 580 | 582 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Aon shareholders | 108 | 182 | 580 | 582 |
Other Non-Guarantor Subsidiaries [Member] | ||||
Revenue | ||||
Commissions, fees and other | 2,785 | 2,726 | 8,583 | 8,368 |
Fiduciary investment income | 8 | 11 | 21 | 30 |
Total revenue | 2,793 | 2,737 | 8,604 | 8,398 |
Expenses | ||||
Compensation and benefits | 1,641 | 1,621 | 5,042 | 4,889 |
Other general expenses | 759 | 753 | 2,304 | 2,297 |
Total operating expenses | 2,400 | 2,374 | 7,346 | 7,186 |
Operating income | 393 | 363 | 1,258 | 1,212 |
Interest income | 2 | 1 | 3 | 5 |
Interest expense | -8 | -12 | -35 | -48 |
Intercompany interest income (expense) | -36 | -40 | -107 | -130 |
Other income (expense) | 26 | -19 | 44 | -10 |
Income from continuing operations before income taxes | 377 | 293 | 1,163 | 1,029 |
Income tax (benefit) expense | 105 | 51 | 310 | 272 |
Income from continuing operations | 272 | 242 | 853 | 757 |
Loss from discontinued operations before income taxes | 0 | 0 | 0 | -1 |
Income taxes | 0 | 0 | 0 | 0 |
Loss from discontinued operations | 0 | 0 | 0 | -1 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income | 272 | 242 | 853 | 756 |
Less: Net income attributable to noncontrolling interests | 8 | 6 | 30 | 25 |
Net income attributable to Aon shareholders | 264 | 236 | 823 | 731 |
Consolidating Adjustments [Member] | ||||
Revenue | ||||
Commissions, fees and other | 0 | 0 | 0 | 0 |
Fiduciary investment income | 0 | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 | 0 |
Expenses | ||||
Compensation and benefits | 0 | 0 | 0 | 0 |
Other general expenses | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Intercompany interest income (expense) | 0 | 0 | 0 | 0 |
Other income (expense) | 0 | 0 | 0 | 0 |
Income from continuing operations before income taxes | 0 | 0 | 0 | 0 |
Income tax (benefit) expense | 0 | 0 | 0 | 0 |
Income from continuing operations | 0 | 0 | 0 | 0 |
Loss from discontinued operations before income taxes | 0 | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 | 0 |
Loss from discontinued operations | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | -372 | -418 | -1,403 | -1,313 |
Net income | -372 | -418 | -1,403 | -1,313 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Aon shareholders | ($372) | ($418) | ($1,403) | ($1,313) |
Guarantee_of_Registered_Securi4
Guarantee of Registered Securities Guarantee of Registered Securities - Condensed Consolidating Statement of Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $264 | $210 | $788 | $713 |
Less: Net income attributable to noncontrolling interests | 8 | 6 | 30 | 25 |
Net income attributable to Aon shareholders | 256 | 204 | 758 | 688 |
Change in fair value of investments | -14 | 0 | -1 | 0 |
Change in fair value of derivatives | 9 | 15 | -12 | 5 |
Foreign currency translation adjustments | 155 | 164 | -77 | 71 |
Post-retirement benefit obligation | 24 | 7 | 65 | 46 |
Total other comprehensive income (loss) | 174 | 186 | -25 | 122 |
Equity in other comprehensive loss of subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Less: Other comprehensive income attributable to noncontrolling interests | 3 | 4 | 1 | 2 |
Total other comprehensive income (loss) attributable to Aon shareholders | 171 | 182 | -26 | 120 |
Comprehensive income attributable to Aon shareholders | 427 | 386 | 732 | 808 |
Aon plc [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 256 | 204 | 758 | 688 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Aon shareholders | 256 | 204 | 758 | 688 |
Change in fair value of investments | 0 | 0 | 0 | 0 |
Change in fair value of derivatives | 0 | 0 | 0 | 0 |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Post-retirement benefit obligation | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Equity in other comprehensive loss of subsidiaries, net of tax | 170 | 182 | -27 | 120 |
Less: Other comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) attributable to Aon shareholders | 170 | 182 | -27 | 120 |
Comprehensive income attributable to Aon shareholders | 426 | 386 | 731 | 808 |
Aon Corporation [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 108 | 182 | 580 | 582 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Aon shareholders | 108 | 182 | 580 | 582 |
Change in fair value of investments | -4 | 0 | 0 | 0 |
Change in fair value of derivatives | 2 | 1 | 5 | 1 |
Foreign currency translation adjustments | 6 | 17 | -14 | 16 |
Post-retirement benefit obligation | 7 | 9 | 22 | 24 |
Total other comprehensive income (loss) | 11 | 27 | 13 | 41 |
Equity in other comprehensive loss of subsidiaries, net of tax | 157 | 168 | -38 | 92 |
Less: Other comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) attributable to Aon shareholders | 168 | 195 | -25 | 133 |
Comprehensive income attributable to Aon shareholders | 276 | 377 | 555 | 715 |
Other Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 272 | 242 | 853 | 756 |
Less: Net income attributable to noncontrolling interests | 8 | 6 | 30 | 25 |
Net income attributable to Aon shareholders | 264 | 236 | 823 | 731 |
Change in fair value of investments | -10 | 0 | -1 | 0 |
Change in fair value of derivatives | 7 | 14 | -17 | 4 |
Foreign currency translation adjustments | 149 | 147 | -63 | 55 |
Post-retirement benefit obligation | 17 | -2 | 43 | 22 |
Total other comprehensive income (loss) | 163 | 159 | -38 | 81 |
Equity in other comprehensive loss of subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Less: Other comprehensive income attributable to noncontrolling interests | 3 | 4 | 1 | 2 |
Total other comprehensive income (loss) attributable to Aon shareholders | 160 | 155 | -39 | 79 |
Comprehensive income attributable to Aon shareholders | 424 | 391 | 784 | 810 |
Consolidating Adjustments [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | -372 | -418 | -1,403 | -1,313 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Aon shareholders | -372 | -418 | -1,403 | -1,313 |
Change in fair value of investments | 0 | 0 | 0 | 0 |
Change in fair value of derivatives | 0 | 0 | 0 | 0 |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Post-retirement benefit obligation | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Equity in other comprehensive loss of subsidiaries, net of tax | -327 | -350 | 65 | -212 |
Less: Other comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) attributable to Aon shareholders | -327 | -350 | 65 | -212 |
Comprehensive income attributable to Aon shareholders | ($699) | ($768) | ($1,338) | ($1,525) |
Guarantee_of_Registered_Securi5
Guarantee of Registered Securities - Condensed Consolidating Statement of Financial Position (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
CURRENT ASSETS : | ||||
Cash and cash equivalents | $369 | $291 | $290 | $272 |
Short-term investments | 357 | 346 | ||
Receivables, net | 2,666 | 3,101 | ||
Fiduciary assets | 11,698 | 12,214 | ||
Intercompany receivables | 0 | 0 | ||
Other current assets | 484 | 430 | ||
Total Current Assets | 15,574 | 16,382 | ||
Goodwill | 8,958 | 8,943 | ||
Intangible assets, net | 2,657 | 2,975 | ||
Fixed assets, net | 803 | 820 | ||
Investments | 139 | 165 | ||
Intercompany receivables | 0 | 0 | ||
Other non-current assets | 1,174 | 1,201 | ||
Investment in subsidiary | 0 | 0 | ||
TOTAL ASSETS | 29,305 | 30,486 | ||
CURRENT LIABILITIES | ||||
Fiduciary liabilities | 11,698 | 12,214 | ||
Short-term debt and current portion of long-term debt | 1,206 | 452 | ||
Accounts payable and accrued liabilities | 1,523 | 1,853 | ||
Intercompany payables | 0 | 0 | ||
Other current liabilities | 764 | 831 | ||
Total Current Liabilities | 15,191 | 15,350 | ||
Long-term debt | 3,352 | 3,713 | ||
Pension, other post-retirement and other post-employment liabilities | 1,773 | 2,276 | ||
Intercompany payables | 0 | 0 | ||
Other non-current liabilities | 1,399 | 1,342 | ||
TOTAL LIABILITIES | 21,715 | 22,681 | ||
TOTAL AON SHAREHOLDERS’ EQUITY | 7,534 | 7,762 | ||
Noncontrolling interests | 56 | 43 | ||
TOTAL EQUITY | 7,590 | 7,805 | ||
TOTAL LIABILITIES AND EQUITY | 29,305 | 30,486 | ||
Aon plc [Member] | ||||
CURRENT ASSETS : | ||||
Cash and cash equivalents | 118 | 131 | 1 | 0 |
Short-term investments | 0 | 0 | ||
Receivables, net | 0 | 5 | ||
Fiduciary assets | 0 | 0 | ||
Intercompany receivables | 41 | 0 | ||
Other current assets | 19 | 7 | ||
Total Current Assets | 178 | 143 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Investments | 0 | 0 | ||
Intercompany receivables | 7,166 | 166 | ||
Other non-current assets | 119 | 117 | ||
Investment in subsidiary | 4,306 | 10,398 | ||
TOTAL ASSETS | 11,769 | 10,824 | ||
CURRENT LIABILITIES | ||||
Fiduciary liabilities | 0 | 0 | ||
Short-term debt and current portion of long-term debt | 361 | 0 | ||
Accounts payable and accrued liabilities | 16 | 10 | ||
Intercompany payables | 1,308 | 51 | ||
Other current liabilities | 1 | 0 | ||
Total Current Liabilities | 1,686 | 61 | ||
Long-term debt | 443 | 107 | ||
Pension, other post-retirement and other post-employment liabilities | 0 | 0 | ||
Intercompany payables | 2,100 | 2,890 | ||
Other non-current liabilities | 6 | 4 | ||
TOTAL LIABILITIES | 4,235 | 3,062 | ||
TOTAL AON SHAREHOLDERS’ EQUITY | 7,534 | 7,762 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL EQUITY | 7,534 | 7,762 | ||
TOTAL LIABILITIES AND EQUITY | 11,769 | 10,824 | ||
Aon Corporation [Member] | ||||
CURRENT ASSETS : | ||||
Cash and cash equivalents | 291 | 199 | 58 | -21 |
Short-term investments | 124 | 89 | ||
Receivables, net | 5 | 1 | ||
Fiduciary assets | 0 | 0 | ||
Intercompany receivables | 3,250 | 2,092 | ||
Other current assets | 59 | 53 | ||
Total Current Assets | 3,729 | 2,434 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Investments | 53 | 49 | ||
Intercompany receivables | 2,181 | 1,997 | ||
Other non-current assets | 748 | 735 | ||
Investment in subsidiary | 11,187 | 10,208 | ||
TOTAL ASSETS | 17,898 | 15,423 | ||
CURRENT LIABILITIES | ||||
Fiduciary liabilities | 0 | 0 | ||
Short-term debt and current portion of long-term debt | 148 | 429 | ||
Accounts payable and accrued liabilities | 41 | 71 | ||
Intercompany payables | 4,727 | 2,637 | ||
Other current liabilities | 47 | 49 | ||
Total Current Liabilities | 4,963 | 3,186 | ||
Long-term debt | 2,516 | 2,515 | ||
Pension, other post-retirement and other post-employment liabilities | 1,162 | 1,294 | ||
Intercompany payables | 7,262 | 166 | ||
Other non-current liabilities | 260 | 254 | ||
TOTAL LIABILITIES | 16,163 | 7,415 | ||
TOTAL AON SHAREHOLDERS’ EQUITY | 1,735 | 8,008 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL EQUITY | 1,735 | 8,008 | ||
TOTAL LIABILITIES AND EQUITY | 17,898 | 15,423 | ||
Other Non-Guarantor Subsidiaries [Member] | ||||
CURRENT ASSETS : | ||||
Cash and cash equivalents | 0 | 0 | 231 | 293 |
Short-term investments | 233 | 257 | ||
Receivables, net | 2,661 | 3,095 | ||
Fiduciary assets | 11,698 | 12,214 | ||
Intercompany receivables | 6,176 | 3,545 | ||
Other current assets | 406 | 370 | ||
Total Current Assets | 21,174 | 19,481 | ||
Goodwill | 8,958 | 8,943 | ||
Intangible assets, net | 2,657 | 2,975 | ||
Fixed assets, net | 803 | 820 | ||
Investments | 86 | 116 | ||
Intercompany receivables | 2,195 | 2,350 | ||
Other non-current assets | 408 | 1,174 | ||
Investment in subsidiary | 0 | 0 | ||
TOTAL ASSETS | 36,281 | 35,859 | ||
CURRENT LIABILITIES | ||||
Fiduciary liabilities | 11,698 | 12,214 | ||
Short-term debt and current portion of long-term debt | 697 | 23 | ||
Accounts payable and accrued liabilities | 1,506 | 1,811 | ||
Intercompany payables | 3,430 | 2,162 | ||
Other current liabilities | 718 | 779 | ||
Total Current Liabilities | 18,049 | 16,989 | ||
Long-term debt | 393 | 1,091 | ||
Pension, other post-retirement and other post-employment liabilities | 611 | 982 | ||
Intercompany payables | 2,180 | 2,247 | ||
Other non-current liabilities | 1,234 | 1,909 | ||
TOTAL LIABILITIES | 22,467 | 23,218 | ||
TOTAL AON SHAREHOLDERS’ EQUITY | 13,758 | 12,598 | ||
Noncontrolling interests | 56 | 43 | ||
TOTAL EQUITY | 13,814 | 12,641 | ||
TOTAL LIABILITIES AND EQUITY | 36,281 | 35,859 | ||
Consolidating Adjustments [Member] | ||||
CURRENT ASSETS : | ||||
Cash and cash equivalents | -40 | -39 | 0 | 0 |
Short-term investments | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Fiduciary assets | 0 | 0 | ||
Intercompany receivables | -9,467 | -5,637 | ||
Other current assets | 0 | 0 | ||
Total Current Assets | -9,507 | -5,676 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Investments | 0 | 0 | ||
Intercompany receivables | -11,542 | -4,513 | ||
Other non-current assets | -101 | -825 | ||
Investment in subsidiary | -15,493 | -20,606 | ||
TOTAL ASSETS | -36,643 | -31,620 | ||
CURRENT LIABILITIES | ||||
Fiduciary liabilities | 0 | 0 | ||
Short-term debt and current portion of long-term debt | 0 | 0 | ||
Accounts payable and accrued liabilities | -40 | -39 | ||
Intercompany payables | -9,465 | -4,850 | ||
Other current liabilities | -2 | 3 | ||
Total Current Liabilities | -9,507 | -4,886 | ||
Long-term debt | 0 | 0 | ||
Pension, other post-retirement and other post-employment liabilities | 0 | 0 | ||
Intercompany payables | -11,542 | -5,303 | ||
Other non-current liabilities | -101 | -825 | ||
TOTAL LIABILITIES | -21,150 | -11,014 | ||
TOTAL AON SHAREHOLDERS’ EQUITY | -15,493 | -20,606 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL EQUITY | -15,493 | -20,606 | ||
TOTAL LIABILITIES AND EQUITY | ($36,643) | ($31,620) |
Guarantee_of_Registered_Securi6
Guarantee of Registered Securities - Condensed Consolidating Statement of Cash Flows (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $984 | $867 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of long-term investments | 81 | 171 |
Purchases of long-term investments | -13 | -9 |
Net (purchases) sales of short-term investments - non-fiduciary | -13 | 66 |
Acquisition of businesses, net of cash acquired | -26 | -97 |
Proceeds from sale of businesses | 6 | 2 |
Capital expenditures | -174 | -201 |
CASH USED FOR INVESTING ACTIVITIES | -139 | -68 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share repurchase | -1,025 | -625 |
Advances from (to) affiliates | 0 | 0 |
Issuance of shares for employee benefit plans | 84 | 93 |
Issuance of debt | 4,270 | 333 |
Repayment of debt | -3,870 | -427 |
Cash dividends to shareholders | -159 | -153 |
Purchase of shares from noncontrolling interests | -6 | 0 |
Dividends paid to noncontrolling interests | -13 | -17 |
CASH USED FOR FINANCING ACTIVITIES | -719 | -796 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -48 | 15 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 78 | 18 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 291 | 272 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 369 | 290 |
Aon plc [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | -14 | -46 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of long-term investments | 0 | 0 |
Purchases of long-term investments | 0 | 0 |
Net (purchases) sales of short-term investments - non-fiduciary | 0 | -16 |
Acquisition of businesses, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses | 0 | 0 |
Capital expenditures | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | 0 | -16 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share repurchase | -1,025 | -525 |
Advances from (to) affiliates | 405 | 648 |
Issuance of shares for employee benefit plans | 84 | 44 |
Issuance of debt | 1,145 | 0 |
Repayment of debt | -449 | 0 |
Cash dividends to shareholders | -159 | -104 |
Purchase of shares from noncontrolling interests | 0 | 0 |
Dividends paid to noncontrolling interests | 0 | 0 |
CASH USED FOR FINANCING ACTIVITIES | 1 | 63 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | -13 | 1 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 131 | 0 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 118 | 1 |
Aon Corporation [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | -195 | -189 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of long-term investments | 8 | 79 |
Purchases of long-term investments | -13 | -9 |
Net (purchases) sales of short-term investments - non-fiduciary | -35 | 61 |
Acquisition of businesses, net of cash acquired | 0 | -55 |
Proceeds from sale of businesses | 0 | 0 |
Capital expenditures | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | -40 | 76 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share repurchase | 0 | -100 |
Advances from (to) affiliates | 610 | 376 |
Issuance of shares for employee benefit plans | 0 | 49 |
Issuance of debt | 2,894 | 332 |
Repayment of debt | -3,177 | -416 |
Cash dividends to shareholders | 0 | -49 |
Purchase of shares from noncontrolling interests | 0 | 0 |
Dividends paid to noncontrolling interests | 0 | 0 |
CASH USED FOR FINANCING ACTIVITIES | 327 | 192 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 92 | 79 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 199 | -21 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 291 | 58 |
Other Non-Guarantor Subsidiaries [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 1,193 | 1,102 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of long-term investments | 73 | 92 |
Purchases of long-term investments | 0 | 0 |
Net (purchases) sales of short-term investments - non-fiduciary | 22 | 21 |
Acquisition of businesses, net of cash acquired | -26 | -42 |
Proceeds from sale of businesses | 6 | 2 |
Capital expenditures | -174 | -201 |
CASH USED FOR INVESTING ACTIVITIES | -99 | -128 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share repurchase | 0 | 0 |
Advances from (to) affiliates | -1,014 | -1,024 |
Issuance of shares for employee benefit plans | 0 | 0 |
Issuance of debt | 231 | 1 |
Repayment of debt | -244 | -11 |
Cash dividends to shareholders | 0 | 0 |
Purchase of shares from noncontrolling interests | -6 | 0 |
Dividends paid to noncontrolling interests | -13 | -17 |
CASH USED FOR FINANCING ACTIVITIES | -1,046 | -1,051 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -48 | 15 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 0 | -62 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 0 | 293 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 0 | 231 |
Consolidating Adjustments [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 0 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of long-term investments | 0 | 0 |
Purchases of long-term investments | 0 | 0 |
Net (purchases) sales of short-term investments - non-fiduciary | 0 | 0 |
Acquisition of businesses, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses | 0 | 0 |
Capital expenditures | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share repurchase | 0 | 0 |
Advances from (to) affiliates | -1 | 0 |
Issuance of shares for employee benefit plans | 0 | 0 |
Issuance of debt | 0 | 0 |
Repayment of debt | 0 | 0 |
Cash dividends to shareholders | 0 | 0 |
Purchase of shares from noncontrolling interests | 0 | 0 |
Dividends paid to noncontrolling interests | 0 | 0 |
CASH USED FOR FINANCING ACTIVITIES | -1 | 0 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | -1 | 0 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | -39 | 0 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | ($40) | $0 |