Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document and Entity Information | |
Entity Registrant Name | Aon plc |
Entity Central Index Key | 315293 |
Document Type | 10-Q |
Document Period End Date | 31-Mar-15 |
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 | 281,733,504 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Revenue | ||||
Commissions, fees and other | $2,842 | $2,941 | ||
Fiduciary investment income | 5 | 6 | ||
Total revenue | 2,847 | 2,947 | ||
Expenses | ||||
Compensation and benefits | 1,683 | 1,751 | ||
Other general expenses | 723 | 727 | ||
Total operating expenses | 2,406 | 2,478 | ||
Operating income | 441 | 469 | ||
Interest income | 3 | 2 | ||
Interest expense | -65 | -58 | ||
Other income | 42 | 1 | ||
Income before income taxes | 421 | 414 | ||
Income taxes | 80 | 78 | ||
Net income | 341 | 336 | ||
Less: Net income attributable to noncontrolling interests | 13 | 11 | ||
Net income attributable to Aon shareholders | $328 | $325 | ||
Basic net income per share attributable to Aon shareholders | $1.15 | $1.07 | ||
Diluted net income per share attributable to Aon shareholders | $1.14 | $1.06 | ||
Cash dividends per share paid on ordinary shares | $0.25 | $0.18 | ||
Weighted average ordinary shares outstanding - basic (in shares) | 284.2 | [1] | 303.5 | [1] |
Weighted average ordinary shares outstanding - diluted (in shares) | 287.1 | 307.2 | ||
[1] | Includes 2.5 million and 3.4 million of participating securities for the three months ended March 31, 2015 and 2014, respectively. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $341 | $336 |
Less: Net income attributable to noncontrolling interests | 13 | 11 |
Net income attributable to Aon shareholders | 328 | 325 |
Other comprehensive (loss) income, net of tax: | ||
Change in fair value of investments | -1 | 1 |
Change in fair value of derivatives | 6 | 9 |
Foreign currency translation adjustments | -322 | 16 |
Post-retirement benefit obligation | 23 | 26 |
Total other comprehensive (loss) income | -294 | 52 |
Less: Other comprehensive (loss) income attributable to noncontrolling interests | -1 | -2 |
Total other comprehensive (loss) income attributable to Aon shareholders | -293 | 54 |
Comprehensive income attributable to Aon shareholders | $35 | $379 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Financial Position (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $378 | $374 |
Short-term investments | 343 | 394 |
Receivables, net | 2,672 | 2,815 |
Fiduciary assets | 10,894 | 11,638 |
Other current assets | 712 | 602 |
Total Current Assets | 14,999 | 15,823 |
Goodwill | 8,548 | 8,860 |
Intangible assets, net | 2,410 | 2,520 |
Fixed assets, net | 754 | 765 |
Other non-current assets | 1,678 | 1,804 |
TOTAL ASSETS | 28,389 | 29,772 |
CURRENT LIABILITIES | ||
Fiduciary liabilities | 10,894 | 11,638 |
Short-term debt and current portion of long-term debt | 966 | 783 |
Accounts payable and accrued liabilities | 1,391 | 1,805 |
Other current liabilities | 865 | 788 |
Total Current Liabilities | 14,116 | 15,014 |
Long-term debt | 4,710 | 4,799 |
Pension, other post-retirement and post-employment liabilities | 2,001 | 2,141 |
Other non-current liabilities | 1,131 | 1,187 |
TOTAL LIABILITIES | 21,958 | 23,141 |
EQUITY | ||
Ordinary shares - $0.01 nominal value Authorized: 750 shares (issued: 2015 - 281.7; 2014 - 280.0) | 3 | 3 |
Additional paid-in capital | 5,177 | 5,097 |
Retained earnings | 4,612 | 4,605 |
Accumulated other comprehensive loss | -3,427 | -3,134 |
TOTAL AON SHAREHOLDERS' EQUITY | 6,365 | 6,571 |
Noncontrolling interests | 66 | 60 |
TOTAL EQUITY | 6,431 | 6,631 |
TOTAL LIABILITIES AND EQUITY | $28,389 | $29,772 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Common stock, nominal or par value (in dollars per share) | $0.01 | $0.01 |
Common stock, Authorized shares | 750 | 750 |
Common stock, issued shares | 281.7 | 280 |
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) Income, Net of Tax [Member] | Non-controlling Interests [Member] |
In Millions, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2014 | $6,631 | $5,100 | $4,605 | ($3,134) | $60 |
Beginning Balance (in shares) at Dec. 31, 2014 | 280 | 280 | |||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 341 | 0 | 328 | 0 | 13 |
Shares issued - employee benefit plans (in shares) | 0.2 | ||||
Shares issued - employee benefit plans | 15 | 15 | 0 | 0 | 0 |
Shares issued - employee compensation (in shares) | 4 | ||||
Shares issued - employee compensation | -128 | -128 | 0 | 0 | 0 |
Shares purchased (in shares) | -2.5 | ||||
Shares purchased | -250 | 0 | -250 | 0 | 0 |
Tax benefit - employee benefit plans | 102 | 102 | 0 | 0 | 0 |
Share-based compensation expense | 90 | 90 | 0 | 0 | 0 |
Dividends to shareholders | -71 | 0 | -71 | 0 | 0 |
Net change in fair value of investments | -1 | 0 | 0 | -1 | 0 |
Net change in fair value of derivatives | 6 | 0 | 0 | 6 | 0 |
Net foreign currency translation adjustments | -322 | 0 | 0 | -321 | -1 |
Net post-retirement benefit obligation | 23 | 0 | 0 | 23 | 0 |
Purchases of shares from noncontrolling interests | -4 | 1 | 0 | 0 | -5 |
Dividends paid to noncontrolling interests on subsidiary common stock | -1 | 0 | 0 | 0 | -1 |
Ending Balance at Mar. 31, 2015 | $6,431 | $5,180 | $4,612 | ($3,427) | $66 |
Ending Balance (in shares) at Mar. 31, 2015 | 281.7 | 281.7 |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $341 | $336 |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | ||
Gain from sales of businesses and investments, net | -19 | -5 |
Depreciation of fixed assets | 56 | 60 |
Amortization of intangible assets | 80 | 86 |
Share-based compensation expense | 90 | 102 |
Deferred income taxes | 7 | 10 |
Change in assets and liabilities: | ||
Fiduciary receivables | 173 | 165 |
Short-term investments b funds held on behalf of clients | 63 | -271 |
Fiduciary liabilities | -236 | 106 |
Receivables, net | 49 | 13 |
Accounts payable and accrued liabilities | -466 | -468 |
Restructuring reserves | -13 | -40 |
Current income taxes | 27 | 2 |
Pension, other post-retirement and other post-employment liabilities | -66 | -128 |
Other assets and liabilities | 50 | 21 |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 136 | -11 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of long-term investments | 3 | 42 |
Purchases of long-term investments | -1 | -10 |
Net sales of short-term investments b non-fiduciary | 42 | 183 |
Acquisition of businesses, net of cash acquired | -21 | -5 |
Proceeds from sale of businesses | 41 | 1 |
Capital expenditures | -62 | -55 |
CASH PROVIDED BY INVESTING ACTIVITIES | 2 | 156 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share repurchase | -250 | -600 |
Issuance of shares for employee benefit plans | 48 | 26 |
Issuance of debt | 870 | 1,195 |
Repayment of debt | -686 | -829 |
Cash dividends to shareholders | -71 | -53 |
(Purchases) sales of shares (from) to noncontrolling interests | -5 | 1 |
Dividends paid to noncontrolling interests | 1 | 0 |
CASH USED FOR FINANCING ACTIVITIES | -95 | -260 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -39 | -24 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4 | -139 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 374 | 477 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 378 | 338 |
Supplemental disclosures: | ||
Interest paid | 63 | 64 |
Income taxes paid, net of refunds | $46 | $66 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
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 of its controlled subsidiaries ("Aon" or the "Company"). All 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, 2014. The results for the three months ended March 31, 2015 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2015. | |
Reclassification | |
Certain amounts in prior years' Condensed Consolidated Financial Statements and related notes have been reclassified to conform to the 2015 presentation. In prior periods, long-term investments were included in Investments in the Condensed Consolidated Statement of Financial Position. These amounts are now included in Other non-current assets in the Condensed Consolidated Statement of Financial Position, as shown in Note 4 to these Condensed Consolidated Financial Statements. Long-term investments were $143 million at both March 31, 2015 and December 31, 2014. | |
Use of Estimates | |
The preparation of the accompanying Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, and foreign currency 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 | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Accounting Principles and Practices | Accounting Principles and Practices |
New Accounting Pronouncements | |
Debt Issuance Costs | |
In April 2015, the Financial Accounting Standards Board ("FASB") issued new accounting guidance on the presentation of debt issuance costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The new guidance will be applied on a retrospective basis and is effective for the Company in the first quarter of 2016. The adoption of this guidance is not expected to have a material impact on the Company's Condensed Consolidated Financial Statements. | |
Consolidations | |
In February 2015, the FASB issued new accounting guidance on consolidations, which eliminates the deferral granted to investment companies from applying the variable interest entities ("VIEs") guidance and makes targeted amendments to the current consolidation guidance. The new guidance applies to all entities involved with limited partnerships or similar entities and will require re-evaluation of these entities under the revised guidance, which could change previous consolidation conclusions. The guidance is effective for the Company in the first quarter of 2016. The impact from the adoption of this guidance on the Company's Condensed Consolidated Financial Statements cannot be determined at this time. | |
Revenue Recognition | |
In May 2014, the FASB issued new accounting guidance on revenue from contracts with customers, which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principal of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The guidance is effective for Aon in the first quarter of 2017 and early adoption is not permitted. The guidance permits two methods of transition upon adoption; full retrospective and modified retrospective. Under the full retrospective method, prior periods would be restated under the new revenue standard, providing a comparable view across all periods presented. Under the modified retrospective method, prior periods would not be restated. Rather, revenues and other disclosures for pre-2017 periods would be provided in the notes to the financial statements as previously reported under the current revenue standard. The impact from the adoption of this guidance on the Company's Condensed Consolidated Financial Statements cannot be determined at this time. The Company is also determining the appropriate method of transition to the guidance. | |
Discontinued Operations | |
In April 2014, the FASB issued new accounting guidance that increased the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The guidance was effective for Aon in the first quarter of 2015. The adoption of this guidance did not have a material impact on the Company's Condensed Consolidated Financial Statements. |
Cash_and_Cash_Equivalents_and_
Cash and Cash Equivalents and Short-term Investments | 3 Months Ended |
Mar. 31, 2015 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash and Cash Equivalents and Short-term Investments | Cash and Cash Equivalents and Short-term Investments |
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. | |
At March 31, 2015, Cash and cash equivalents and Short-term investments were $721 million compared to $768 million at December 31, 2014. Of the total balance, $127 million and $169 million was restricted as to its use at March 31, 2015 and December 31, 2014, respectively. Included within that amount, the Company is required to hold £40.5 million of operating funds in the U.K. by the Financial Conduct Authority, a U.K.-based regulator, which were included in Short-term investments. These operating funds, when translated to U.S. dollars, were equal to $60 million and $63 million at March 31, 2015 and December 31, 2014, respectively. In addition, Cash and cash equivalents included additional restricted balances of $67 million and $106 million at March 31, 2015 and December 31, 2014, respectively. The restricted balances primarily relate to cash required to be held as collateral. |
Other_Financial_Data
Other Financial Data | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Financial Data [Abstract] | ||||||||
Other Financial Data | Other Financial Data | |||||||
Condensed Consolidated Statements of Income Information | ||||||||
Other Income | ||||||||
Other income consists of the following (in millions): | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Foreign currency remeasurement gain | $ | 24 | $ | 19 | ||||
Gain on disposal of business | 19 | — | ||||||
Equity earnings | 2 | 5 | ||||||
Loss on investments | (2 | ) | (1 | ) | ||||
Derivative loss | (1 | ) | (23 | ) | ||||
Other | — | 1 | ||||||
Total | $ | 42 | $ | 1 | ||||
Condensed Consolidated Statements of Financial Position Information | ||||||||
Allowance for Doubtful Accounts | ||||||||
An analysis of the allowance for doubtful accounts is as follows (in millions): | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Balance at beginning of period | $ | 74 | $ | 90 | ||||
Provision charged to operations | 8 | 4 | ||||||
Accounts written off, net of recoveries | (9 | ) | (5 | ) | ||||
Foreign currency translation | (3 | ) | — | |||||
Balance at end of period | $ | 70 | $ | 89 | ||||
Other Current Assets | ||||||||
The components of Other current assets are as follows (in millions): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Taxes receivable | $ | 218 | $ | 99 | ||||
Deferred tax assets | 206 | 212 | ||||||
Prepaid expenses | 158 | 164 | ||||||
Deferred project costs | 108 | 102 | ||||||
Other | 22 | 25 | ||||||
Total | $ | 712 | $ | 602 | ||||
Other Non-Current Assets | ||||||||
The components of Other non-current assets are as follows (in millions): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Prepaid pension | $ | 897 | $ | 933 | ||||
Deferred project costs | 237 | 250 | ||||||
Deferred tax assets | 146 | 144 | ||||||
Investments | 143 | 143 | ||||||
Taxes receivable | 57 | 101 | ||||||
Other | 198 | 233 | ||||||
Total | $ | 1,678 | $ | 1,804 | ||||
Other Current Liabilities | ||||||||
The components of Other current liabilities are as follows (in millions): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Deferred revenue | $ | 410 | $ | 408 | ||||
Taxes payable | 89 | 64 | ||||||
Deferred tax liabilities | 2 | 2 | ||||||
Other | 364 | 314 | ||||||
Total | $ | 865 | $ | 788 | ||||
Other Non-Current Liabilities | ||||||||
The components of Other non-current liabilities are as follows (in millions): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Deferred tax liabilities | $ | 307 | $ | 313 | ||||
Taxes payable | 201 | 210 | ||||||
Deferred revenue | 186 | 167 | ||||||
Leases | 172 | 184 | ||||||
Compensation and benefits | 55 | 57 | ||||||
Other | 210 | 256 | ||||||
Total | $ | 1,131 | $ | 1,187 | ||||
Acquisitions_and_Dispositions
Acquisitions and Dispositions | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Acquisitions and Dispositions | Acquisitions and Dispositions | ||||||||
Acquisitions | |||||||||
During the three months ended March 31, 2015, the Company completed the acquisition of one business in the Risk Solutions segment and one business in the HR Solutions segment. During the three months ended March 31, 2014, the Company completed the acquisition of one business in the Risk Solutions segment and one business in the HR 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 (in millions): | |||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
Consideration | $ | 21 | $ | 5 | |||||
Intangible assets: | |||||||||
Goodwill | $ | 16 | $ | 4 | |||||
Other intangible assets | 1 | 4 | |||||||
Total | $ | 17 | $ | 8 | |||||
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 in which they were acquired. | |||||||||
Dispositions | |||||||||
During the three months ended March 31, 2015, the Company completed the disposition of one business in the Risk Solutions segment and one business in the HR Solutions segment. A pretax gain of $19 million was recognized on these dispositions in the three months ended March 31, 2015, which is included in Other income in the Condensed Consolidated Statements of Income. During the three months ended March 31, 2014, the Company completed the disposition of one business in the Risk Solutions segment. A pretax gain of $1 million was recognized on this disposition in the three months ended March 31, 2014, which is included in Other income in the Condensed Consolidated Statements of Income. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |||||||||||||||||||||||
The changes in the net carrying amount of goodwill by reportable segment for the three months ended March 31, 2015 are as follows (in millions): | ||||||||||||||||||||||||
Risk | HR | Total | ||||||||||||||||||||||
Solutions | Solutions | |||||||||||||||||||||||
Balance as of January 1, 2015 | $ | 5,911 | $ | 2,949 | $ | 8,860 | ||||||||||||||||||
Goodwill related to current year acquisitions | 1 | 15 | 16 | |||||||||||||||||||||
Goodwill related to disposals | — | (13 | ) | (13 | ) | |||||||||||||||||||
Foreign currency translation | (284 | ) | (31 | ) | (315 | ) | ||||||||||||||||||
Balance as of March 31, 2015 | $ | 5,628 | $ | 2,920 | $ | 8,548 | ||||||||||||||||||
Other intangible assets by asset class are as follows (in millions): | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated | Net Carrying Amount | Gross Carrying Amount | Accumulated | Net Carrying Amount | |||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||||||
Tradenames | $ | 1,019 | $ | — | $ | 1,019 | $ | 1,019 | $ | — | $ | 1,019 | ||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Customer related and contract based | 2,894 | 1,616 | 1,278 | 2,952 | 1,579 | 1,373 | ||||||||||||||||||
Technology and other | 548 | 435 | 113 | 571 | 443 | 128 | ||||||||||||||||||
Total | $ | 4,461 | $ | 2,051 | $ | 2,410 | $ | 4,542 | $ | 2,022 | $ | 2,520 | ||||||||||||
Amortization expense from finite lived intangible assets was $80 million and $86 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||||||
The estimated future amortization for finite lived intangible assets as of March 31, 2015 is as follows (in millions): | ||||||||||||||||||||||||
Risk Solutions | HR Solutions | Total | ||||||||||||||||||||||
Remainder of 2015 | $ | 80 | $ | 154 | $ | 234 | ||||||||||||||||||
2016 | 99 | 172 | 271 | |||||||||||||||||||||
2017 | 90 | 137 | 227 | |||||||||||||||||||||
2018 | 78 | 91 | 169 | |||||||||||||||||||||
2019 | 69 | 73 | 142 | |||||||||||||||||||||
Thereafter | 185 | 163 | 348 | |||||||||||||||||||||
Total | $ | 601 | $ | 790 | $ | 1,391 | ||||||||||||||||||
Debt
Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt |
Revolving Credit Facilities | |
As of December 31, 2014, Aon plc had two primary committed credit facilities outstanding: its $400 million U.S. credit facility expiring in March 2017 (the "2017 Facility") and its €650 million ($707 million based on exchange rates at March 31, 2015) European credit facility expiring in October 2015 (the "2015 Facility"). Aon Corporation entered into the 2015 Facility on October 15, 2010 (Aon plc became a borrower under such facility on April 29, 2013) and Aon plc entered into the 2017 Facility on March 20, 2012. On February 2, 2015, Aon plc replaced the 2015 Facility with a new $900 million multi-currency U.S. credit facility expiring in February 2020 (the "2020 Facility"). Each of these facilities included customary representations, warranties and covenants, including financial covenants that require Aon plc to maintain specified ratios of adjusted consolidated EBITDA to consolidated interest expense and consolidated debt to adjusted consolidated EBITDA, in each case, tested quarterly. At March 31, 2015, Aon plc had no borrowings under, and was in compliance with these financial covenants and all other covenants contained in, the 2017 Facility and 2020 Facility during the three months ended March 31, 2015. | |
Commercial Paper | |
Aon Corporation, a wholly-owned subsidiary of Aon plc, has established a U.S. commercial paper program, which provides for commercial paper to be issued in an aggregate principal amount of up to $900 million, and Aon plc has established a European multi-currency commercial paper program that provides for commercial paper to be issued in an aggregate principal amount of up to €300 million. The U.S. commercial paper program is fully and unconditionally guaranteed by Aon plc and the European commercial paper program is fully and unconditionally guaranteed by Aon Corporation. In the aggregate, the Company had $355 million and $168 million of commercial paper outstanding at March 31, 2015 and December 31, 2014, respectively, which was included in Short-term debt and current portion of long-term debt in the Company's Condensed Consolidated Statements of Financial Position. The weighted average commercial paper outstanding for the three months ended March 31, 2015 was $317 million. The weighted average interest rate of the commercial paper outstanding for the three months ended March 31, 2015 was 0.50%. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The effective tax rate on net income was 19.1% and 18.9% for the three months ended March 31, 2015, and 2014, respectively. The effective tax rate in the first quarter of 2015 was unfavorably impacted by a change in the geographical distribution of income, partially offset by the impact of certain discrete items. | |
During the three months ended March 31, 2015, the Company's uncertain tax positions decreased by $19 million, excluding interest and penalties, as compared to the year ended December 31, 2014. The decrease in uncertain tax positions was primarily related to the settlement of certain issues related to the IRS audit for tax years 2008-2011. As of March 31, 2015, the Company's liability for uncertain tax positions was $186 million, which was included in Other non-current liabilities in the Condensed Consolidated Statement of Financial Position, including interest and penalties of $25 million and net of $11 million of tax attributes. | |
The Company's liability for uncertain tax positions as of March 31, 2015 includes $133 million related to amounts that would impact the effective tax rate if recognized. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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"). In November 2014, the Company's Board of Directors authorized a new $5.0 billion share repurchase program in addition to the existing program ("2014 Share Repurchase Program"). Under each 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 three months ended March 31, 2015, the Company repurchased 2.5 million shares at an average price per share of $100.15 for a total cost of approximately $250 million under the 2012 Share Repurchase Program. In the three months ended March 31, 2014, the Company repurchased 7.2 million shares at an average price per share of $83.45 for a total cost of $600 million under the 2012 Share Repurchase Program. The remaining authorized amount for share repurchase under the 2012 Share Repurchase Program and 2014 Share Repurchase Program is $5.4 billion. Since the program's inception in 2012, the Company repurchased a total of 64.6 million shares for an aggregate cost of $4.6 billion. | ||||||||||||||||||||
Net Income Per Share | ||||||||||||||||||||
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. | ||||||||||||||||||||
Net income, attributable to participating securities was $2 million and $3 million in the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||
Weighted average shares outstanding are as follows (in millions): | ||||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Shares for basic earnings per share (1) | 284.2 | 303.5 | ||||||||||||||||||
Common stock equivalents | 2.9 | 3.7 | ||||||||||||||||||
Shares for diluted earnings per share | 287.1 | 307.2 | ||||||||||||||||||
______________________________________________ | ||||||||||||||||||||
(1) Includes 2.5 million and 3.4 million of participating securities for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||
Certain ordinary share equivalents may be excluded from the computation of diluted net income per share if their inclusion would be antidilutive. There were no shares excluded from the calculation for the three months ended March 31, 2015 and 2014, 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, 2014 | $ | — | $ | (17 | ) | $ | (335 | ) | $ | (2,782 | ) | $ | (3,134 | ) | ||||||
Other comprehensive (loss) income before reclassifications, net | (1 | ) | (1 | ) | (321 | ) | 3 | (320 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 11 | — | 29 | 40 | |||||||||||||||
Tax benefit | — | (4 | ) | — | (9 | ) | (13 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net | — | 7 | — | 20 | 27 | |||||||||||||||
Net current period other comprehensive (loss) income | (1 | ) | 6 | (321 | ) | 23 | (293 | ) | ||||||||||||
Balance at March 31, 2015 | $ | (1 | ) | $ | (11 | ) | $ | (656 | ) | $ | (2,759 | ) | $ | (3,427 | ) | |||||
______________________________________________ | ||||||||||||||||||||
(1) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income. | ||||||||||||||||||||
(2) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Compensation and benefits. |
Employee_Benefits
Employee Benefits | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Employee Benefits | Employee Benefits | |||||||||||||||||||||||
The following table provides the components of the net periodic benefit cost recognized in the Condensed Consolidated Statements of Income in Compensation and benefits for Aon's material U.K., U.S., and other significant international pension plans located in the Netherlands and Canada (in millions): | ||||||||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||||||
U.K. | U.S. | Other | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost | 49 | 58 | 33 | 32 | 8 | 12 | ||||||||||||||||||
Expected return on plan assets | (75 | ) | (82 | ) | (39 | ) | (39 | ) | (12 | ) | (15 | ) | ||||||||||||
Amortization of net actuarial loss | 10 | 13 | 14 | 10 | 3 | 2 | ||||||||||||||||||
Net periodic (benefit) cost | (16 | ) | (11 | ) | 9 | 3 | (1 | ) | (1 | ) | ||||||||||||||
Curtailment loss (gain) and other | — | — | (1 | ) | 1 | — | (3 | ) | ||||||||||||||||
Total net periodic (benefit) cost | $ | (16 | ) | $ | (11 | ) | $ | 8 | $ | 4 | $ | (1 | ) | $ | (4 | ) | ||||||||
Based on current assumptions, in 2015, the Company expects to contribute approximately $65 million, $132 million, and $23 million to its U.K., U.S. and other significant international pension plans, respectively. During the three months ended March 31, 2015, contributions of $19 million, $34 million, and $4 million were made to the Company's U.K., U.S. and other significant international pension plans, respectively. During the three months ended March 31, 2014, contributions of $65 million, $40 million, and $12 million were made to the Company's U.K., U.S. and other significant international pension plans, respectively. |
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
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 March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Restricted share units ("RSUs") | $ | 65 | $ | 60 | ||||||||||
Performance share awards ("PSAs") | 21 | 39 | ||||||||||||
Share options | — | — | ||||||||||||
Employee share purchase plans | 4 | 3 | ||||||||||||
Total share-based compensation expense | $ | 90 | $ | 102 | ||||||||||
Restricted Share Units | ||||||||||||||
A summary of the status of the Company's RSUs is as follows (shares in thousands): | ||||||||||||||
Three months ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Shares | Fair Value (1) | Shares | Fair Value (1) | |||||||||||
Non-vested at beginning of period | 8,381 | $ | 63 | 9,759 | $ | 51 | ||||||||
Granted | 957 | 97 | 1,146 | 83 | ||||||||||
Vested | (1,714 | ) | 59 | (1,950 | ) | 51 | ||||||||
Forfeited | (49 | ) | 64 | (125 | ) | 50 | ||||||||
Non-vested at end of period | 7,575 | 69 | 8,830 | 56 | ||||||||||
______________________________________________ | ||||||||||||||
-1 | Represents per share weighted average fair value of award at date of grant. | |||||||||||||
Performance Share Awards | ||||||||||||||
The vesting of PSAs is contingent upon meeting a cumulative level of earnings per share performance over a three-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 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 terms of the plan and level of achievement of the related performance target. Dividend equivalents are not paid on PSAs. | ||||||||||||||
Information as of March 31, 2015 regarding the Company's target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the three months ended March 31, 2015 and the years ended December 31, 2014 and 2013, respectively, is as follows (shares in thousands, dollars in millions, except fair value): | ||||||||||||||
2015 | 2014 | 2013 | ||||||||||||
Target PSAs granted during period | 978 | 816 | 1,135 | |||||||||||
Weighted average fair value per share at date of grant | $ | 96 | $ | 81 | $ | 58 | ||||||||
Number of shares that would be issued based on current performance levels | 978 | 1,201 | 2,197 | |||||||||||
Unamortized expense, based on current performance levels | $ | 93 | $ | 61 | $ | 34 | ||||||||
Share Options | ||||||||||||||
The Company did not grant any share options during either the three months ended March 31, 2015 or 2014. | ||||||||||||||
A summary of the status of the Company's share options and related information is as follows (shares in thousands): | ||||||||||||||
Three months ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Shares | Weighted- Average | Shares | Weighted- Average | |||||||||||
Exercise Price | Exercise Price | |||||||||||||
Beginning outstanding | 2,300 | $ | 32 | 3,462 | $ | 32 | ||||||||
Granted | — | — | — | — | ||||||||||
Exercised | (1,293 | ) | 26 | (416 | ) | 33 | ||||||||
Forfeited and expired | (9 | ) | 36 | (2 | ) | 36 | ||||||||
Outstanding at end of period | 998 | 39 | 3,044 | 32 | ||||||||||
Exercisable at end of period | 998 | 39 | 2,928 | 32 | ||||||||||
The weighted average remaining contractual life, in years, of outstanding options was 2.7 years and 2.0 years at March 31, 2015 and 2014, respectively. | ||||||||||||||
The aggregate intrinsic value represents the total pretax intrinsic value, based on options with an exercise price less than the Company's closing share price of $96.12 as of March 31, 2015, which would have been received by the option holders had those option holders exercised their options as of that date. At March 31, 2015, the aggregate intrinsic value of options outstanding was $57 million, all of which were exercisable. | ||||||||||||||
Other information related to the Company's share options is as follows (in millions): | ||||||||||||||
Three months ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Aggregate intrinsic value of stock options exercised | $ | 94 | $ | 21 | ||||||||||
Cash received from the exercise of stock options | 34 | 14 | ||||||||||||
Tax benefit realized from the exercise of stock options | 34 | 6 | ||||||||||||
Unamortized deferred compensation expense, which includes both options and awards, amounted to $267 million as of March 31, 2015, with a remaining weighted-average amortization period of approximately 1.8 years. |
Derivatives_and_Hedging
Derivatives and Hedging | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 earns revenues, pays expenses, or enters into monetary intercompany transfers 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. These derivatives are accounted for as hedges, and changes in fair value are recorded each period in Other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income. | ||||||||||||||||||||||||
The Company also uses foreign exchange derivatives, typically forward contracts and options to economically hedge 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, typically in a rolling 30 day basis, but may be 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 (1) using International Swaps and Derivatives Association master agreements, collateral and credit support arrangements, (2) entering into non-exchange-traded derivatives with highly-rated major financial institutions and (3) using exchange-traded instruments. The Company monitors the creditworthiness of, and exposure to, its counterparties. As of March 31, 2015, all net derivative positions were free of credit risk contingent features. The Company had not received or pledged any collateral related to derivative arrangements as of March 31, 2015. | ||||||||||||||||||||||||
The notional and fair values of derivative instruments are as follows (in millions): | ||||||||||||||||||||||||
Notional Amount | Derivative Assets (1) | Derivative Liabilities (2) | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Derivatives accounted for as hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Foreign exchange contracts | 919 | 1,200 | 59 | 46 | 79 | 58 | ||||||||||||||||||
Total | 919 | 1,200 | 59 | 46 | 79 | 58 | ||||||||||||||||||
Derivatives not accounted for as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts (3) | 181 | 165 | — | — | — | — | ||||||||||||||||||
Total | $ | 1,100 | $ | 1,365 | $ | 59 | $ | 46 | $ | 79 | $ | 58 | ||||||||||||
______________________________________________ | ||||||||||||||||||||||||
-1 | Included within Other current assets ($38 million at March 31, 2015 and $24 million at December 31, 2014) or Other non-current assets ($21 million at March 31, 2015 and $22 million at December 31, 2014). | |||||||||||||||||||||||
-2 | Included within Other current liabilities ($66 million at March 31, 2015 and $52 million at December 31, 2014) or Other non-current liabilities ($13 million at March 31, 2015 and $6 million at December 31, 2014). | |||||||||||||||||||||||
-3 | These contracts typically are for 30 day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date. | |||||||||||||||||||||||
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) | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Derivatives accounted for as hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Foreign exchange contracts | 59 | 46 | (32 | ) | (14 | ) | 27 | 32 | ||||||||||||||||
Total | 59 | 46 | (32 | ) | (14 | ) | 27 | 32 | ||||||||||||||||
Derivatives not accounted for as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 59 | $ | 46 | $ | (32 | ) | $ | (14 | ) | $ | 27 | $ | 32 | ||||||||||
______________________________________________ | ||||||||||||||||||||||||
(1) Included within Other current assets ($15 million at March 31, 2015 and $12 million at December 31, 2014) or Other non-current assets ($12 million at March 31, 2015 and $20 million at December 31, 2014). | ||||||||||||||||||||||||
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 (1) | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Derivatives accounted for as hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Foreign exchange contracts | 79 | 58 | (32 | ) | (14 | ) | 47 | 44 | ||||||||||||||||
Total | 79 | 58 | (32 | ) | (14 | ) | 47 | 44 | ||||||||||||||||
Derivatives not accounted for as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 79 | $ | 58 | $ | (32 | ) | $ | (14 | ) | $ | 47 | $ | 44 | ||||||||||
______________________________________________ | ||||||||||||||||||||||||
(1) Included within Other current liabilities ($42 million at March 31, 2015 and $40 million at December 31, 2014) or Other non-current liabilities ($5 million at March 31, 2015 and $4 million at December 31, 2014). | ||||||||||||||||||||||||
The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements for the three months ended March 31, 2015 and 2014 are as follows (in millions): | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Location of future reclassification from Accumulated Other Comprehensive Loss | Gain (Loss) recognized in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||
Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Foreign exchange contracts | 5 | (2 | ) | — | (4 | ) | (1 | ) | ||||||||||||||||
Total | $ | 5 | $ | (2 | ) | $ | — | $ | (4 | ) | $ | (1 | ) | |||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Location of future reclassification from Accumulated Other Comprehensive Loss | Gain (Loss) recognized in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||
Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Foreign exchange contracts | 11 | — | — | (19 | ) | (8 | ) | |||||||||||||||||
Total | $ | 11 | $ | — | $ | — | $ | (19 | ) | $ | (8 | ) | ||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | ||||||||||||
Foreign exchange contracts | — | — | (2 | ) | (8 | ) | (10 | ) | ||||||||||||||||
Total | $ | — | $ | — | $ | (3 | ) | $ | (8 | ) | $ | (11 | ) | |||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Foreign exchange contracts | (3 | ) | — | — | (18 | ) | (21 | ) | ||||||||||||||||
Total | $ | (3 | ) | $ | — | $ | — | $ | (18 | ) | $ | (21 | ) | |||||||||||
The Company estimates that approximately $4 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 months ended March 31, 2015 and 2014 was not material. | ||||||||||||||||||||||||
During the three months ended March 31, 2015 and 2014, the Company recorded a gain of $7 million and a loss of $5 million, respectively, in Other income for foreign exchange derivatives not designated or qualifying as hedges. |
Fair_Value_Measurements_and_Fi
Fair Value Measurements and Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements and Financial Instruments | Fair Value Measurements 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. | ||||||||||||||||
Equity investments consist of domestic and international equity securities valued using the closing stock price on a national securities exchange. The Company 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 securities. | ||||||||||||||||
Fixed income investments consist of corporate and government bonds. Corporate and government 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. 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 to 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 management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and have historically not been material to the fair value estimates used 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. | ||||||||||||||||
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 March 31, 2015 and December 31, 2014 (in millions): | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance at March 31, 2015 | 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) | $ | 1,787 | $ | 1,787 | $ | — | $ | — | ||||||||
Other investments: | ||||||||||||||||
Corporate bonds | 1 | — | — | 1 | ||||||||||||
Government bonds | 6 | — | 6 | — | ||||||||||||
Equity investments | 10 | 6 | 4 | — | ||||||||||||
Derivatives: | ||||||||||||||||
Interest rate contracts | — | — | — | — | ||||||||||||
Foreign exchange contracts | 59 | — | 59 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Derivatives: | ||||||||||||||||
Foreign exchange contracts | 79 | — | 79 | — | ||||||||||||
______________________________________________ | ||||||||||||||||
(1) Includes $1,787 million of money market funds 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. | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance at December 31, 2014 | 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) | $ | 1,850 | $ | 1,850 | $ | — | $ | — | ||||||||
Other investments: | ||||||||||||||||
Corporate bonds | 1 | — | — | 1 | ||||||||||||
Government bonds | 6 | — | 6 | — | ||||||||||||
Equity investments | 11 | 6 | 5 | — | ||||||||||||
Derivatives: | ||||||||||||||||
Interest rate contracts | — | — | — | — | ||||||||||||
Foreign exchange contracts | 46 | — | 46 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Derivatives: | ||||||||||||||||
Foreign exchange contracts | 58 | — | 58 | — | ||||||||||||
______________________________________________ | ||||||||||||||||
(1) Includes $1,850 million of money market funds 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. | ||||||||||||||||
There were no transfers of assets or liabilities between fair value hierarchy levels in either the three months ended March 31, 2015 or 2014. The Company recognized no realized or unrealized gains or losses in the Condensed Consolidated Statements of Income during either the three months ended March 31, 2015 or 2014, related to assets and liabilities measured at fair value using unobservable inputs. | ||||||||||||||||
The fair value of Long-term debt is classified as Level 2 of the fair value hierarchy. The following table discloses the Company's financial instruments where the carrying amounts and fair values differ (in millions): | ||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Long-term debt | $ | 4,710 | $ | 5,259 | $ | 4,799 | $ | 5,268 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
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 claims. Accruals for these exposures, and related insurance receivables, when applicable, are included in the Condensed Consolidated Statements of Financial Position and have been recognized in Other general expenses in the Condensed Consolidated Statements of Income to the extent that losses are deemed probable and are reasonably estimable. These amounts are adjusted from time to time as developments warrant. Matters that are not probable and estimable are not accrued for in the financial statements. Included in the matters described below are matters in which (1) loss is probable (2) loss is reasonably possible; that is, more than remote but not probable or (3) there exists the reasonable possibility of loss greater than the accrued amount. The reasonably possible range of loss for the matters described below, in excess of amounts that are deemed probable and estimable and therefore already accrued, is estimated to be between $0 and $0.6 billion, exclusive of any insurance coverage. These estimates are based on currently available information. As available information changes, the matters for which Aon is able to estimate will change, and the estimates themselves will change. In addition, many estimates involve significant judgment and uncertainty. For example, at the time of making an estimate, Aon may only have limited information about the facts underlying the claim, and predictions and assumptions about future court rulings and outcomes may prove to be inaccurate. | |
Although management at present believes that the ultimate outcome of all matters described below, individually or in the aggregate, will not have a material adverse effect on the consolidated financial position of Aon, legal proceedings are subject to inherent uncertainties and unfavorable rulings or other events. Unfavorable resolutions could include substantial monetary or punitive damages imposed on Aon or its subsidiaries. If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected. | |
A predecessor of a retail insurance brokerage subsidiary of Aon provided insurance brokerage services to Northrop Grumman Corporation ("Northrop"). This subsidiary placed Northrop's property insurance program for the period covering 2005. Northrop suffered a substantial loss in August 2005 when Hurricane Katrina damaged Northrop's shipbuilding facilities in the Gulf States. Northrop's excess insurance carrier, Factory Mutual Insurance Company ("Factory Mutual"), denied coverage for storm surge damage pursuant to a flood exclusion in the excess policy. Northrop sued Factory Mutual in the United States District Court for the Central District of California. The district court granted summary judgment in Northrop's favor in August 2007. In August 2008, the United State Court of Appeals for the Ninth Circuit reversed the district court's ruling and held that the flood exclusion applied to storm surge damage. Northrop thereafter sought to join Aon's subsidiary as a defendant in the action against Factory Mutual, asserting that if Northrop's policy with Factory Mutual does not cover the Northrop storm surge losses, then the Aon subsidiary will be responsible for Northrop's losses. In August 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 the Aon subsidiary as a defendant in the federal lawsuit. On January 27, 2011, Northrop filed suit against the Aon subsidiary in the Superior Court of the State of California, County of Los Angeles, asserting claims for negligence, breach of contract and negligent misrepresentation. Northrop later settled its claims with Factory Mutual. In January 2014, Northrop filed an amended complaint, adding additional claims against the Aon subsidiary for intentional misrepresentation and concealment. Northrop seeks compensatory damages of approximately $340 million, which includes prejudgment interest and attorneys' fees, and punitive damages that are a multiple of the compensatory damages sought. Aon asserts several defenses (which it believes to be meritorious), including, but not limited to, that it committed no error or omission in placing the Factory Mutual excess policy for Northrop and that Northrop did not suffer any damages as a result of Aon's conduct. Aon intends to vigorously defend itself against these claims. | |
Another retail insurance brokerage subsidiary of Aon was sued on September 14, 2010 in the Chancery Court for Davidson County, Tennessee Twentieth Judicial District, at Nashville 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 in coverage from numerous insurers with whom this Aon subsidiary placed the client's property insurance coverage. The insurers contend that only $50 million in coverage (which has already been paid) 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. In March 2015, the trial court granted partial summary judgment in favor of plaintiffs | |
and against the insurers, holding generally that the plaintiffs are entitled to $200 million in coverage under the language of the policies. Aon understands that the insurers intend to appeal this trial court decision. Aon believes it has meritorious defenses and intends to vigorously defend itself against these claims. | |
A pensions consulting and administration subsidiary of Hewitt before its acquisition by Aon provided advisory services to the Trustees of the Philips UK pension fund and the relevant employer of fund beneficiaries. On January 2, 2014, Philips Pension Trustees Limited and Philips Electronics UK Limited (together, "Philips") sued Aon in the High Court, Chancery Division, London alleging negligence and breach of duty. The proceedings assert 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. Philips is seeking approximately £189 million ($281 million at March 31, 2015 exchange rates), plus interest and costs. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these allegations. | |
On June 1, 2007, the International Road Transport Union ("IRU") sued Aon in the Geneva Tribunal of First Instance in Switzerland. IRU alleges, among other things, that, between 1995 and 2004, a predecessor of Aon and, later, an Aon subsidiary (1) accepted commissions for certain insurance placements that violated a fee agreement entered between the parties and (2) negligently failed to ask certain insurance carriers to contribute to the IRU's risk management costs. IRU seeks damages of approximately CHF 46 million ($48 million at March 31, 2015 exchange rates) and $3 million, plus legal fees and interest of approximately $30 million. On December 2, 2014, the Geneva Tribunal of First Instance entered a judgment that accepted some, and rejected other, of IRU's claims. The judgment awarded IRU CHF 16.8 million ($17 million at March 31, 2015 exchange rates) and $3.1 million, plus interest and adverse costs. The entire amount of the judgment, including interest through December 31, 2014, totals CHF 27.9 million ($29 million at March 31, 2015 exchange rates) and $5 million. On January 26, 2015, in return for IRU agreeing not to appeal the bulk of its dismissed claims, the Aon subsidiary agreed not to appeal a part of the judgment and to pay IRU CHF 12.8 million ($13 million at March 31, 2015 exchange rates) and $4.7 million without Aon admitting liability. The Aon subsidiary appealed those aspects of the judgment it retained the right to appeal. IRU did not appeal. The Aon subsidiary's maximum liability on appeal is limited to CHF 8.7 million ($9 million at March 31, 2015 exchange rates) and $115,000 (plus interest and costs) beyond what the subsidiary has already paid. | |
On December 27, 2012, AXA Versicherung Aktiengesellschaft ("AXA") started arbitral proceedings in Hamburg, Germany against an insurance and reinsurance brokerage subsidiary of Aon in Germany. Predecessors of AXA granted predecessors of the Aon subsidiary a mandate to underwrite non-proportional reinsurance business from 1975 through 1999. AXA alleges, among other things, that the Aon-related entities intentionally exceeded their mandate and that, if AXA had known of this intention, it would not have granted a mandate. AXA seeks damages of approximately €183 million ($199 million at March 31, 2015 exchange rates). The arbitrators heard testimony over the course of four days in September and December 2014, and the evidentiary portion of the arbitration proceeding has now closed. The matter is now under submission. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims. | |
A pensions consulting and administration subsidiary of Aon provided advisory services to the Trustees of the Gleeds pension fund in the United Kingdom and, on occasion, to the relevant employer of the fund. In April 2014, the High Court, Chancery Division, London found that certain governing documents of the fund that sought to alter the fund's benefit structure and that had been drafted by Aon were procedurally defective and therefore invalid. No lawsuit naming Aon as a party has been filed, although a tolling agreement has been entered. The High Court decision says that the additional liabilities in the pension fund resulting from the alleged defect in governing documents amount to approximately £45 million ($67 million at March 31, 2015 exchange rates). In December 2014, the Court of Appeal granted the employer leave to appeal the High Court decision. The Court of Appeal hearing is set for October 2015. Aon believes that it has meritorious defenses and intends to vigorously defend itself against this potential claim. | |
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. | |
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), and (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. | |
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 are included in the Company's Condensed Consolidated Financial Statements, and are recorded at fair value. | |
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 of approximately $68 million at March 31, 2015, compared to $95 million at December 31, 2014. 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. | |
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 $12 million at March 31, 2015 compared to $14 million at December 31, 2014. During the three months ended March 31, 2015, the Company funded $2 million of these commitments. | |
Premium Payments | |
The Company has certain contractual contingent guarantees for premium payments owed by clients to certain insurance companies. The maximum exposure with respect to such contractual contingent guarantees was approximately $77 million at March 31, 2015 compared to $112 million at December 31, 2014. |
Segment_Information
Segment Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 March 31, | ||||||||
2015 | 2014 | |||||||
Risk Solutions | $ | 1,895 | $ | 1,994 | ||||
HR Solutions | 970 | 965 | ||||||
Intersegment eliminations | (18 | ) | (12 | ) | ||||
Total revenue | $ | 2,847 | $ | 2,947 | ||||
Commissions, fees and other revenues by product are as follows (in millions): | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Retail brokerage | $ | 1,513 | $ | 1,579 | ||||
Reinsurance brokerage | 377 | 409 | ||||||
Total Risk Solutions Segment | 1,890 | 1,988 | ||||||
Consulting services | 371 | 384 | ||||||
Outsourcing | 604 | 589 | ||||||
Intrasegment | (5 | ) | (8 | ) | ||||
Total HR Solutions Segment | 970 | 965 | ||||||
Intersegment | (18 | ) | (12 | ) | ||||
Total commissions, fees and other revenue | $ | 2,842 | $ | 2,941 | ||||
Fiduciary investment income by segment is as follows (in millions): | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Risk Solutions | $ | 5 | $ | 6 | ||||
HR Solutions | — | — | ||||||
Total fiduciary investment income | $ | 5 | $ | 6 | ||||
A reconciliation of segment operating income before tax to income before income taxes is as follows (in millions): | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Risk Solutions | $ | 412 | $ | 445 | ||||
HR Solutions | 76 | 67 | ||||||
Segment income before income taxes | 488 | 512 | ||||||
Unallocated expenses | (47 | ) | (43 | ) | ||||
Interest income | 3 | 2 | ||||||
Interest expense | (65 | ) | (58 | ) | ||||
Other income | 42 | 1 | ||||||
Income before income taxes | $ | 421 | $ | 414 | ||||
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 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 | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Guarantee of Registered Securities [Abstract] | |||||||||||||||||||||
Guarantee of Registered Securities | Guarantee of Registered Securities | ||||||||||||||||||||
As described in Note 14, 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% indirectly owned subsidiary of Aon plc. The debt securities that are subject to Rule 3-10 of Regulation S-X are the 3.50% Notes due September 2015, the 3.125% Notes due May 2016, the 5.00% Notes due September 2020, the 8.205% Notes due January 2027 and the 6.25% 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% Notes due January 2027. 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, the 4.00% Notes due November 2023, the 2.875% Notes due May 2026, the 3.50% Notes due June 2024, and the 4.60% Notes due June 2044. 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, the 4.45% Notes due 2043, the 4.00% Notes due 2023, the 2.875% Notes due 2026, the 3.50% Notes due 2024 or the 4.60% Notes due 2044. | |||||||||||||||||||||
The following tables set forth condensed consolidating statements of income for the three months ended March 31, 2015 and 2014, condensed consolidating statements of comprehensive income for the three months ended March 31, 2015 and 2014, condensed consolidating statements of financial position as of March 31, 2015 and December 31, 2014, and condensed consolidating statements of cash flows for the three months ended March 31, 2015 and 2014 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 January 2015, Aon plc transferred its ownership of all of its directly held subsidiaries to Aon Global Holdings Limited, an intermediate holding company. The financial results of Aon Global Holdings Limited are 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 plc to Aon Global Holdings Limited below for all periods presented. | |||||||||||||||||||||
Certain amounts in prior year's condensed consolidating statements of income have been reclassified and adjusted to conform to the 2015 presentation. In prior periods, other income (expense) from intercompany transactions were recognized in Compensation and benefits and Other general expenses. These amounts are now included in Intercompany other income (expense) in the Condensed Consolidating Statements of Income. The Company believes this provides greater clarity into the income generated from operations and intercompany transactions. | |||||||||||||||||||||
Condensed Consolidating Statement of Income | |||||||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Revenue | |||||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 2,842 | $ | — | $ | 2,842 | |||||||||||
Fiduciary investment income | — | — | 5 | — | 5 | ||||||||||||||||
Total revenue | — | — | 2,847 | — | 2,847 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | 52 | 11 | 1,620 | — | 1,683 | ||||||||||||||||
Other general expenses | 13 | 2 | 708 | — | 723 | ||||||||||||||||
Total operating expenses | 65 | 13 | 2,328 | — | 2,406 | ||||||||||||||||
Operating (loss) income | (65 | ) | (13 | ) | 519 | — | 441 | ||||||||||||||
Interest income | (5 | ) | 3 | 5 | — | 3 | |||||||||||||||
Interest expense | (25 | ) | (34 | ) | (6 | ) | — | (65 | ) | ||||||||||||
Intercompany interest income (expense) | 119 | (105 | ) | (14 | ) | — | — | ||||||||||||||
Intercompany other (expense) income | (50 | ) | (8 | ) | 58 | — | — | ||||||||||||||
Other income | 2 | 8 | 32 | — | 42 | ||||||||||||||||
(Loss) income before taxes | (24 | ) | (149 | ) | 594 | — | 421 | ||||||||||||||
Income tax (benefit) expense | (5 | ) | (50 | ) | 135 | — | 80 | ||||||||||||||
(Loss) income before equity in earnings of subsidiaries | (19 | ) | (99 | ) | 459 | — | 341 | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | 347 | 403 | 304 | (1,054 | ) | — | |||||||||||||||
Net income | 328 | 304 | 763 | (1,054 | ) | 341 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 13 | — | 13 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 328 | $ | 304 | $ | 750 | $ | (1,054 | ) | $ | 328 | ||||||||||
Condensed Consolidating Statement of Income | |||||||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Revenue | |||||||||||||||||||||
Commissions, fees and other | $ | 1 | $ | — | $ | 2,940 | $ | — | $ | 2,941 | |||||||||||
Fiduciary investment income | — | — | 6 | — | 6 | ||||||||||||||||
Total revenue | 1 | — | 2,946 | — | 2,947 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | 66 | 7 | 1,678 | — | 1,751 | ||||||||||||||||
Other general expenses | 4 | 3 | 720 | — | 727 | ||||||||||||||||
Total operating expenses | 70 | 10 | 2,398 | — | 2,478 | ||||||||||||||||
Operating (loss) income | (69 | ) | (10 | ) | 548 | — | 469 | ||||||||||||||
Interest income | (2 | ) | — | 4 | — | 2 | |||||||||||||||
Interest expense | (9 | ) | (31 | ) | (18 | ) | — | (58 | ) | ||||||||||||
Intercompany interest income (expense) | 111 | (74 | ) | (37 | ) | — | — | ||||||||||||||
Intercompany other (expense) income | (19 | ) | (15 | ) | 34 | — | — | ||||||||||||||
Other income | — | — | 1 | — | 1 | ||||||||||||||||
Income (loss) before taxes | 12 | (130 | ) | 532 | — | 414 | |||||||||||||||
Income tax expense (benefit) | 3 | (50 | ) | 125 | — | 78 | |||||||||||||||
Income (loss) before equity in earnings of subsidiaries | 9 | (80 | ) | 407 | — | 336 | |||||||||||||||
Equity in earnings of subsidiaries, net of tax | 316 | 333 | 253 | (902 | ) | — | |||||||||||||||
Net income | 325 | 253 | 660 | (902 | ) | 336 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 11 | — | 11 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 325 | $ | 253 | $ | 649 | $ | (902 | ) | $ | 325 | ||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 328 | $ | 304 | $ | 763 | $ | (1,054 | ) | $ | 341 | ||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 13 | — | 13 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 328 | $ | 304 | $ | 750 | $ | (1,054 | ) | $ | 328 | ||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Change in fair value of investments | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Change in fair value of derivatives | — | (1 | ) | 7 | — | 6 | |||||||||||||||
Foreign currency translation adjustments | — | (23 | ) | (299 | ) | — | (322 | ) | |||||||||||||
Post-retirement benefit obligation | — | 8 | 15 | — | 23 | ||||||||||||||||
Total other comprehensive loss | — | (16 | ) | (278 | ) | — | (294 | ) | |||||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | (293 | ) | (267 | ) | (283 | ) | 843 | — | |||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Total other comprehensive loss attributable to Aon shareholders | (293 | ) | (283 | ) | (560 | ) | 843 | (293 | ) | ||||||||||||
Comprehensive income attributable to Aon shareholders | $ | 35 | $ | 21 | $ | 190 | $ | (211 | ) | $ | 35 | ||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 325 | $ | 253 | $ | 660 | $ | (902 | ) | $ | 336 | ||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 11 | — | 11 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 325 | $ | 253 | $ | 649 | $ | (902 | ) | $ | 325 | ||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||
Change in fair value of investments | — | — | 1 | — | 1 | ||||||||||||||||
Change in fair value of derivatives | — | 1 | 8 | — | 9 | ||||||||||||||||
Foreign currency translation adjustments | — | (17 | ) | 33 | — | 16 | |||||||||||||||
Post-retirement benefit obligation | — | 6 | 20 | — | 26 | ||||||||||||||||
Total other comprehensive (loss) income | — | (10 | ) | 62 | — | 52 | |||||||||||||||
Equity in other comprehensive income of subsidiaries, net of tax | 54 | 69 | 59 | (182 | ) | — | |||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Total other comprehensive income attributable to Aon shareholders | 54 | 59 | 123 | (182 | ) | 54 | |||||||||||||||
Comprehensive income attributable to Aon Shareholders | $ | 379 | $ | 312 | $ | 772 | $ | (1,084 | ) | $ | 379 | ||||||||||
Condensed Consolidating Statement of Financial Position | |||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2,230 | $ | 650 | $ | (2,502 | ) | $ | 378 | ||||||||||
Short-term investments | — | 166 | 177 | — | 343 | ||||||||||||||||
Receivables, net | — | — | 2,672 | — | 2,672 | ||||||||||||||||
Fiduciary assets | — | — | 10,894 | — | 10,894 | ||||||||||||||||
Intercompany receivables | 125 | 3,581 | 9,681 | (13,387 | ) | — | |||||||||||||||
Other current assets | 2 | 207 | 536 | (33 | ) | 712 | |||||||||||||||
Total Current Assets | 127 | 6,184 | 24,610 | (15,922 | ) | 14,999 | |||||||||||||||
Goodwill | — | — | 8,548 | — | 8,548 | ||||||||||||||||
Intangible assets, net | — | — | 2,410 | — | 2,410 | ||||||||||||||||
Fixed assets, net | — | — | 754 | — | 754 | ||||||||||||||||
Intercompany receivables | 7,374 | 577 | 121 | (8,072 | ) | — | |||||||||||||||
Other non-current assets | 181 | 701 | 1,589 | (793 | ) | 1,678 | |||||||||||||||
Investment in subsidiary | 4,121 | 15,391 | 1,868 | (21,380 | ) | — | |||||||||||||||
TOTAL ASSETS | $ | 11,803 | $ | 22,853 | $ | 39,900 | $ | (46,167 | ) | $ | 28,389 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Fiduciary liabilities | $ | — | $ | — | $ | 10,894 | $ | — | $ | 10,894 | |||||||||||
Short-term debt and current portion of long-term debt | 109 | 846 | 11 | — | 966 | ||||||||||||||||
Accounts payable and accrued liabilities | 2,597 | 31 | 1,265 | (2,502 | ) | 1,391 | |||||||||||||||
Intercompany payables | 246 | 9,382 | 3,759 | (13,387 | ) | — | |||||||||||||||
Other current liabilities | — | 49 | 849 | (33 | ) | 865 | |||||||||||||||
Total Current Liabilities | 2,952 | 10,308 | 16,778 | (15,922 | ) | 14,116 | |||||||||||||||
Long-term debt | 2,480 | 1,917 | 313 | — | 4,710 | ||||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,366 | 635 | — | 2,001 | ||||||||||||||||
Intercompany payables | — | 7,287 | 785 | (8,072 | ) | — | |||||||||||||||
Other non-current liabilities | 6 | 107 | 1,811 | (793 | ) | 1,131 | |||||||||||||||
TOTAL LIABILITIES | 5,438 | 20,985 | 20,322 | (24,787 | ) | 21,958 | |||||||||||||||
TOTAL AON SHAREHOLDERS' EQUITY | 6,365 | 1,868 | 19,512 | (21,380 | ) | 6,365 | |||||||||||||||
Noncontrolling interests | — | — | 66 | — | 66 | ||||||||||||||||
TOTAL EQUITY | 6,365 | 1,868 | 19,578 | (21,380 | ) | 6,431 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 11,803 | $ | 22,853 | $ | 39,900 | $ | (46,167 | ) | $ | 28,389 | ||||||||||
Condensed Consolidating Statement of Financial Position | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2,727 | $ | 1,361 | $ | (3,714 | ) | $ | 374 | ||||||||||
Short-term investments | — | 165 | 229 | — | 394 | ||||||||||||||||
Receivables, net | — | — | 2,815 | — | 2,815 | ||||||||||||||||
Fiduciary assets | — | — | 11,638 | — | 11,638 | ||||||||||||||||
Intercompany receivables | 455 | 2,814 | 9,156 | (12,425 | ) | — | |||||||||||||||
Other current assets | 2 | 226 | 407 | (33 | ) | 602 | |||||||||||||||
Total Current Assets | 457 | 5,932 | 25,606 | (16,172 | ) | 15,823 | |||||||||||||||
Goodwill | — | — | 8,860 | — | 8,860 | ||||||||||||||||
Intangible assets, net | — | — | 2,520 | — | 2,520 | ||||||||||||||||
Fixed assets, net | — | — | 765 | — | 765 | ||||||||||||||||
Intercompany receivables | 7,399 | 600 | 111 | (8,110 | ) | — | |||||||||||||||
Other non-current assets | 179 | 697 | 1,718 | (790 | ) | 1,804 | |||||||||||||||
Investment in subsidiary | 4,962 | 15,200 | 1,880 | (22,042 | ) | — | |||||||||||||||
TOTAL ASSETS | $ | 12,997 | $ | 22,429 | $ | 41,460 | $ | (47,114 | ) | $ | 29,772 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Fiduciary liabilities | $ | — | $ | — | $ | 11,638 | $ | — | $ | 11,638 | |||||||||||
Short-term debt and current portion of long-term debt | — | 767 | 16 | — | 783 | ||||||||||||||||
Accounts payable and accrued liabilities | 3,755 | 58 | 1,706 | (3,714 | ) | 1,805 | |||||||||||||||
Intercompany payables | 122 | 8,960 | 3,343 | (12,425 | ) | — | |||||||||||||||
Other current liabilities | — | 49 | 772 | (33 | ) | 788 | |||||||||||||||
Total Current Liabilities | 3,877 | 9,834 | 17,475 | (16,172 | ) | 15,014 | |||||||||||||||
Long-term debt | 2,544 | 1,917 | 338 | — | 4,799 | ||||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,396 | 745 | — | 2,141 | ||||||||||||||||
Intercompany payables | — | 7,277 | 833 | (8,110 | ) | — | |||||||||||||||
Other non-current liabilities | 5 | 125 | 1,847 | (790 | ) | 1,187 | |||||||||||||||
TOTAL LIABILITIES | 6,426 | 20,549 | 21,238 | (25,072 | ) | 23,141 | |||||||||||||||
TOTAL AON SHAREHOLDERS' EQUITY | 6,571 | 1,880 | 20,162 | (22,042 | ) | 6,571 | |||||||||||||||
Noncontrolling interests | — | — | 60 | — | 60 | ||||||||||||||||
TOTAL EQUITY | 6,571 | 1,880 | 20,222 | (22,042 | ) | 6,631 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 12,997 | $ | 22,429 | $ | 41,460 | $ | (47,114 | ) | $ | 29,772 | ||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||||||
Aon | Aon | Other | Consolidating | ||||||||||||||||||
Non-Guarantor | |||||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 2 | $ | (188 | ) | $ | 322 | $ | — | $ | 136 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||
Sales of long-term investments | — | — | 3 | — | 3 | ||||||||||||||||
Purchase of long-term investments | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Net sales of short-term investments - non-fiduciary | — | (1 | ) | 43 | — | 42 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (21 | ) | — | (21 | ) | ||||||||||||||
Proceeds from sale of businesses | — | — | 41 | — | 41 | ||||||||||||||||
Capital expenditures | — | — | (62 | ) | — | (62 | ) | ||||||||||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | — | (2 | ) | 4 | — | 2 | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||
Share repurchase | (250 | ) | — | — | — | (250 | ) | ||||||||||||||
Advances from (to) affiliates | 157 | (385 | ) | (984 | ) | 1,212 | — | ||||||||||||||
Issuance of shares for employee benefit plans | 48 | — | — | — | 48 | ||||||||||||||||
Issuance of debt | 114 | 756 | — | — | 870 | ||||||||||||||||
Repayment of debt | — | (678 | ) | (8 | ) | — | (686 | ) | |||||||||||||
Cash dividends to shareholders | (71 | ) | — | — | — | (71 | ) | ||||||||||||||
Purchase of shares from noncontrolling interests | — | — | (5 | ) | — | (5 | ) | ||||||||||||||
Dividends paid to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Proceeds from sale-leaseback | — | — | — | — | — | ||||||||||||||||
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | (2 | ) | (307 | ) | (998 | ) | 1,212 | (95 | ) | ||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (39 | ) | — | (39 | ) | ||||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | — | (497 | ) | (711 | ) | 1,212 | 4 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | — | 2,727 | 1,361 | (3,714 | ) | 374 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 2,230 | $ | 650 | $ | (2,502 | ) | $ | 378 | ||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 89 | $ | (123 | ) | $ | 23 | $ | — | $ | (11 | ) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||
Sales of long-term investments | — | 37 | 5 | — | 42 | ||||||||||||||||
Purchase of long-term investments | — | (10 | ) | — | — | (10 | ) | ||||||||||||||
Net sales of short-term investments - non-fiduciary | — | 62 | 121 | — | 183 | ||||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (5 | ) | — | (5 | ) | ||||||||||||||
Proceeds from sale of businesses | — | — | 1 | — | 1 | ||||||||||||||||
Capital expenditures | — | — | (55 | ) | — | (55 | ) | ||||||||||||||
CASH PROVIDED BY INVESTING ACTIVITIES | — | 89 | 67 | — | 156 | ||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||
Share repurchase | (600 | ) | — | — | — | (600 | ) | ||||||||||||||
Advances from (to) affiliates | 313 | (206 | ) | 65 | (172 | ) | — | ||||||||||||||
Issuance of shares for employee benefit plans | 26 | — | — | — | 26 | ||||||||||||||||
Issuance of debt | 293 | 902 | — | — | 1,195 | ||||||||||||||||
Repayment of debt | (68 | ) | (755 | ) | (6 | ) | — | (829 | ) | ||||||||||||
Cash dividends to shareholders | (53 | ) | — | — | — | (53 | ) | ||||||||||||||
Purchase of shares from noncontrolling interests | — | — | 1 | — | 1 | ||||||||||||||||
CASH (USED FOR) PROVIDED BY | (89 | ) | (59 | ) | 60 | (172 | ) | (260 | ) | ||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (24 | ) | — | (24 | ) | ||||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | — | (93 | ) | 126 | (172 | ) | (139 | ) | |||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | — | 247 | 1,246 | (1,016 | ) | 477 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 154 | $ | 1,372 | $ | (1,188 | ) | $ | 338 | ||||||||||
Other_Financial_Data_Tables
Other Financial Data (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Financial Data [Abstract] | ||||||||
Schedule of Other Income | Other income consists of the following (in millions): | |||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Foreign currency remeasurement gain | $ | 24 | $ | 19 | ||||
Gain on disposal of business | 19 | — | ||||||
Equity earnings | 2 | 5 | ||||||
Loss on investments | (2 | ) | (1 | ) | ||||
Derivative loss | (1 | ) | (23 | ) | ||||
Other | — | 1 | ||||||
Total | $ | 42 | $ | 1 | ||||
Schedule of Allowance for Doubtful Accounts | An analysis of the allowance for doubtful accounts is as follows (in millions): | |||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Balance at beginning of period | $ | 74 | $ | 90 | ||||
Provision charged to operations | 8 | 4 | ||||||
Accounts written off, net of recoveries | (9 | ) | (5 | ) | ||||
Foreign currency translation | (3 | ) | — | |||||
Balance at end of period | $ | 70 | $ | 89 | ||||
Schedule of Other Current Assets | The components of Other current assets are as follows (in millions): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Taxes receivable | $ | 218 | $ | 99 | ||||
Deferred tax assets | 206 | 212 | ||||||
Prepaid expenses | 158 | 164 | ||||||
Deferred project costs | 108 | 102 | ||||||
Other | 22 | 25 | ||||||
Total | $ | 712 | $ | 602 | ||||
Schedule of Other Non-current Assets | The components of Other non-current assets are as follows (in millions): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Prepaid pension | $ | 897 | $ | 933 | ||||
Deferred project costs | 237 | 250 | ||||||
Deferred tax assets | 146 | 144 | ||||||
Investments | 143 | 143 | ||||||
Taxes receivable | 57 | 101 | ||||||
Other | 198 | 233 | ||||||
Total | $ | 1,678 | $ | 1,804 | ||||
Schedule of Other Current Liabilities | The components of Other current liabilities are as follows (in millions): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Deferred revenue | $ | 410 | $ | 408 | ||||
Taxes payable | 89 | 64 | ||||||
Deferred tax liabilities | 2 | 2 | ||||||
Other | 364 | 314 | ||||||
Total | $ | 865 | $ | 788 | ||||
Schedule of Other Non-current Liabilities | The components of Other non-current liabilities are as follows (in millions): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Deferred tax liabilities | $ | 307 | $ | 313 | ||||
Taxes payable | 201 | 210 | ||||||
Deferred revenue | 186 | 167 | ||||||
Leases | 172 | 184 | ||||||
Compensation and benefits | 55 | 57 | ||||||
Other | 210 | 256 | ||||||
Total | $ | 1,131 | $ | 1,187 | ||||
Acquisitions_and_Dispositions_
Acquisitions and Dispositions (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 (in millions): | ||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
Consideration | $ | 21 | $ | 5 | |||||
Intangible assets: | |||||||||
Goodwill | $ | 16 | $ | 4 | |||||
Other intangible assets | 1 | 4 | |||||||
Total | $ | 17 | $ | 8 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of changes in the net carrying amount of goodwill by operating segment | The changes in the net carrying amount of goodwill by reportable segment for the three months ended March 31, 2015 are as follows (in millions): | |||||||||||||||||||||||
Risk | HR | Total | ||||||||||||||||||||||
Solutions | Solutions | |||||||||||||||||||||||
Balance as of January 1, 2015 | $ | 5,911 | $ | 2,949 | $ | 8,860 | ||||||||||||||||||
Goodwill related to current year acquisitions | 1 | 15 | 16 | |||||||||||||||||||||
Goodwill related to disposals | — | (13 | ) | (13 | ) | |||||||||||||||||||
Foreign currency translation | (284 | ) | (31 | ) | (315 | ) | ||||||||||||||||||
Balance as of March 31, 2015 | $ | 5,628 | $ | 2,920 | $ | 8,548 | ||||||||||||||||||
Schedule of other intangible assets by asset class | Other intangible assets by asset class are as follows (in millions): | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated | Net Carrying Amount | Gross Carrying Amount | Accumulated | Net Carrying Amount | |||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||||||
Tradenames | $ | 1,019 | $ | — | $ | 1,019 | $ | 1,019 | $ | — | $ | 1,019 | ||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Customer related and contract based | 2,894 | 1,616 | 1,278 | 2,952 | 1,579 | 1,373 | ||||||||||||||||||
Technology and other | 548 | 435 | 113 | 571 | 443 | 128 | ||||||||||||||||||
Total | $ | 4,461 | $ | 2,051 | $ | 2,410 | $ | 4,542 | $ | 2,022 | $ | 2,520 | ||||||||||||
Schedule of estimated future amortization expense on intangible assets | The estimated future amortization for finite lived intangible assets as of March 31, 2015 is as follows (in millions): | |||||||||||||||||||||||
Risk Solutions | HR Solutions | Total | ||||||||||||||||||||||
Remainder of 2015 | $ | 80 | $ | 154 | $ | 234 | ||||||||||||||||||
2016 | 99 | 172 | 271 | |||||||||||||||||||||
2017 | 90 | 137 | 227 | |||||||||||||||||||||
2018 | 78 | 91 | 169 | |||||||||||||||||||||
2019 | 69 | 73 | 142 | |||||||||||||||||||||
Thereafter | 185 | 163 | 348 | |||||||||||||||||||||
Total | $ | 601 | $ | 790 | $ | 1,391 | ||||||||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Schedule of components of weighted average number of shares | Weighted average shares outstanding are as follows (in millions): | |||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Shares for basic earnings per share (1) | 284.2 | 303.5 | ||||||||||||||||||
Common stock equivalents | 2.9 | 3.7 | ||||||||||||||||||
Shares for diluted earnings per share | 287.1 | 307.2 | ||||||||||||||||||
______________________________________________ | ||||||||||||||||||||
(1) Includes 2.5 million and 3.4 million of participating securities for the three months ended March 31, 2015 and 2014, 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, 2014 | $ | — | $ | (17 | ) | $ | (335 | ) | $ | (2,782 | ) | $ | (3,134 | ) | ||||||
Other comprehensive (loss) income before reclassifications, net | (1 | ) | (1 | ) | (321 | ) | 3 | (320 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 11 | — | 29 | 40 | |||||||||||||||
Tax benefit | — | (4 | ) | — | (9 | ) | (13 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net | — | 7 | — | 20 | 27 | |||||||||||||||
Net current period other comprehensive (loss) income | (1 | ) | 6 | (321 | ) | 23 | (293 | ) | ||||||||||||
Balance at March 31, 2015 | $ | (1 | ) | $ | (11 | ) | $ | (656 | ) | $ | (2,759 | ) | $ | (3,427 | ) | |||||
______________________________________________ | ||||||||||||||||||||
(1) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income. | ||||||||||||||||||||
(2) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Compensation and benefits |
Employee_Benefits_Tables
Employee Benefits (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 recognized in the Condensed Consolidated Statements of Income in Compensation and benefits for Aon's material U.K., U.S., and other significant international pension plans located in the Netherlands and Canada (in millions): | |||||||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||||||
U.K. | U.S. | Other | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost | 49 | 58 | 33 | 32 | 8 | 12 | ||||||||||||||||||
Expected return on plan assets | (75 | ) | (82 | ) | (39 | ) | (39 | ) | (12 | ) | (15 | ) | ||||||||||||
Amortization of net actuarial loss | 10 | 13 | 14 | 10 | 3 | 2 | ||||||||||||||||||
Net periodic (benefit) cost | (16 | ) | (11 | ) | 9 | 3 | (1 | ) | (1 | ) | ||||||||||||||
Curtailment loss (gain) and other | — | — | (1 | ) | 1 | — | (3 | ) | ||||||||||||||||
Total net periodic (benefit) cost | $ | (16 | ) | $ | (11 | ) | $ | 8 | $ | 4 | $ | (1 | ) | $ | (4 | ) | ||||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
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 March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Restricted share units ("RSUs") | $ | 65 | $ | 60 | ||||||||||
Performance share awards ("PSAs") | 21 | 39 | ||||||||||||
Share options | — | — | ||||||||||||
Employee share purchase plans | 4 | 3 | ||||||||||||
Total share-based compensation expense | $ | 90 | $ | 102 | ||||||||||
Restricted share unit activity | A summary of the status of the Company's RSUs is as follows (shares in thousands): | |||||||||||||
Three months ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Shares | Fair Value (1) | Shares | Fair Value (1) | |||||||||||
Non-vested at beginning of period | 8,381 | $ | 63 | 9,759 | $ | 51 | ||||||||
Granted | 957 | 97 | 1,146 | 83 | ||||||||||
Vested | (1,714 | ) | 59 | (1,950 | ) | 51 | ||||||||
Forfeited | (49 | ) | 64 | (125 | ) | 50 | ||||||||
Non-vested at end of period | 7,575 | 69 | 8,830 | 56 | ||||||||||
______________________________________________ | ||||||||||||||
-1 | Represents per share weighted average fair value of award at date of grant. | |||||||||||||
Performance-based plans | Information as of March 31, 2015 regarding the Company's target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the three months ended March 31, 2015 and the years ended December 31, 2014 and 2013, respectively, is as follows (shares in thousands, dollars in millions, except fair value): | |||||||||||||
2015 | 2014 | 2013 | ||||||||||||
Target PSAs granted during period | 978 | 816 | 1,135 | |||||||||||
Weighted average fair value per share at date of grant | $ | 96 | $ | 81 | $ | 58 | ||||||||
Number of shares that would be issued based on current performance levels | 978 | 1,201 | 2,197 | |||||||||||
Unamortized expense, based on current performance levels | $ | 93 | $ | 61 | $ | 34 | ||||||||
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): | |||||||||||||
Three months ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Shares | Weighted- Average | Shares | Weighted- Average | |||||||||||
Exercise Price | Exercise Price | |||||||||||||
Beginning outstanding | 2,300 | $ | 32 | 3,462 | $ | 32 | ||||||||
Granted | — | — | — | — | ||||||||||
Exercised | (1,293 | ) | 26 | (416 | ) | 33 | ||||||||
Forfeited and expired | (9 | ) | 36 | (2 | ) | 36 | ||||||||
Outstanding at end of period | 998 | 39 | 3,044 | 32 | ||||||||||
Exercisable at end of period | 998 | 39 | 2,928 | 32 | ||||||||||
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 March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Aggregate intrinsic value of stock options exercised | $ | 94 | $ | 21 | ||||||||||
Cash received from the exercise of stock options | 34 | 14 | ||||||||||||
Tax benefit realized from the exercise of stock options | 34 | 6 | ||||||||||||
Derivatives_and_Hedging_Tables
Derivatives and Hedging (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 (1) | Derivative Liabilities (2) | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Derivatives accounted for as hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Foreign exchange contracts | 919 | 1,200 | 59 | 46 | 79 | 58 | ||||||||||||||||||
Total | 919 | 1,200 | 59 | 46 | 79 | 58 | ||||||||||||||||||
Derivatives not accounted for as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts (3) | 181 | 165 | — | — | — | — | ||||||||||||||||||
Total | $ | 1,100 | $ | 1,365 | $ | 59 | $ | 46 | $ | 79 | $ | 58 | ||||||||||||
______________________________________________ | ||||||||||||||||||||||||
-1 | Included within Other current assets ($38 million at March 31, 2015 and $24 million at December 31, 2014) or Other non-current assets ($21 million at March 31, 2015 and $22 million at December 31, 2014). | |||||||||||||||||||||||
-2 | Included within Other current liabilities ($66 million at March 31, 2015 and $52 million at December 31, 2014) or Other non-current liabilities ($13 million at March 31, 2015 and $6 million at December 31, 2014). | |||||||||||||||||||||||
-3 | These contracts typically are for 30 day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date. | |||||||||||||||||||||||
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) | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Derivatives accounted for as hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Foreign exchange contracts | 59 | 46 | (32 | ) | (14 | ) | 27 | 32 | ||||||||||||||||
Total | 59 | 46 | (32 | ) | (14 | ) | 27 | 32 | ||||||||||||||||
Derivatives not accounted for as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 59 | $ | 46 | $ | (32 | ) | $ | (14 | ) | $ | 27 | $ | 32 | ||||||||||
______________________________________________ | ||||||||||||||||||||||||
(1) Included within Other current assets ($15 million at March 31, 2015 and $12 million at December 31, 2014) or Other non-current assets ($12 million at March 31, 2015 and $20 million at December 31, 2014). | ||||||||||||||||||||||||
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 (1) | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Derivatives accounted for as hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Foreign exchange contracts | 79 | 58 | (32 | ) | (14 | ) | 47 | 44 | ||||||||||||||||
Total | 79 | 58 | (32 | ) | (14 | ) | 47 | 44 | ||||||||||||||||
Derivatives not accounted for as hedges: | ||||||||||||||||||||||||
Foreign exchange contracts | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 79 | $ | 58 | $ | (32 | ) | $ | (14 | ) | $ | 47 | $ | 44 | ||||||||||
______________________________________________ | ||||||||||||||||||||||||
(1) Included within Other current liabilities ($42 million at March 31, 2015 and $40 million at December 31, 2014) or Other non-current liabilities ($5 million at March 31, 2015 and $4 million at December 31, 2014) | ||||||||||||||||||||||||
Derivative gains (losses) | The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements for the three months ended March 31, 2015 and 2014 are as follows (in millions): | |||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Location of future reclassification from Accumulated Other Comprehensive Loss | Gain (Loss) recognized in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||
Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Foreign exchange contracts | 5 | (2 | ) | — | (4 | ) | (1 | ) | ||||||||||||||||
Total | $ | 5 | $ | (2 | ) | $ | — | $ | (4 | ) | $ | (1 | ) | |||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Location of future reclassification from Accumulated Other Comprehensive Loss | Gain (Loss) recognized in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||
Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Foreign exchange contracts | 11 | — | — | (19 | ) | (8 | ) | |||||||||||||||||
Total | $ | 11 | $ | — | $ | — | $ | (19 | ) | $ | (8 | ) | ||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | ||||||||||||
Foreign exchange contracts | — | — | (2 | ) | (8 | ) | (10 | ) | ||||||||||||||||
Total | $ | — | $ | — | $ | (3 | ) | $ | (8 | ) | $ | (11 | ) | |||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Foreign exchange contracts | (3 | ) | — | — | (18 | ) | (21 | ) | ||||||||||||||||
Total | $ | (3 | ) | $ | — | $ | — | $ | (18 | ) | $ | (21 | ) | |||||||||||
The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements for the three months ended March 31, 2015 and 2014 are as follows (in millions): | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Location of future reclassification from Accumulated Other Comprehensive Loss | Gain (Loss) recognized in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||
Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Foreign exchange contracts | 5 | (2 | ) | — | (4 | ) | (1 | ) | ||||||||||||||||
Total | $ | 5 | $ | (2 | ) | $ | — | $ | (4 | ) | $ | (1 | ) | |||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Location of future reclassification from Accumulated Other Comprehensive Loss | Gain (Loss) recognized in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||
Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Foreign exchange contracts | 11 | — | — | (19 | ) | (8 | ) | |||||||||||||||||
Total | $ | 11 | $ | — | $ | — | $ | (19 | ) | $ | (8 | ) | ||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | ||||||||||||
Foreign exchange contracts | — | — | (2 | ) | (8 | ) | (10 | ) | ||||||||||||||||
Total | $ | — | $ | — | $ | (3 | ) | $ | (8 | ) | $ | (11 | ) | |||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | |||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Foreign exchange contracts | (3 | ) | — | — | (18 | ) | (21 | ) | ||||||||||||||||
Total | $ | (3 | ) | $ | — | $ | — | $ | (18 | ) | $ | (21 | ) | |||||||||||
Fair_Value_Measurements_and_Fi1
Fair Value Measurements and Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 March 31, 2015 and December 31, 2014 (in millions): | |||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance at March 31, 2015 | 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) | $ | 1,787 | $ | 1,787 | $ | — | $ | — | ||||||||
Other investments: | ||||||||||||||||
Corporate bonds | 1 | — | — | 1 | ||||||||||||
Government bonds | 6 | — | 6 | — | ||||||||||||
Equity investments | 10 | 6 | 4 | — | ||||||||||||
Derivatives: | ||||||||||||||||
Interest rate contracts | — | — | — | — | ||||||||||||
Foreign exchange contracts | 59 | — | 59 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Derivatives: | ||||||||||||||||
Foreign exchange contracts | 79 | — | 79 | — | ||||||||||||
______________________________________________ | ||||||||||||||||
(1) Includes $1,787 million of money market funds 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. | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Balance at December 31, 2014 | 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) | $ | 1,850 | $ | 1,850 | $ | — | $ | — | ||||||||
Other investments: | ||||||||||||||||
Corporate bonds | 1 | — | — | 1 | ||||||||||||
Government bonds | 6 | — | 6 | — | ||||||||||||
Equity investments | 11 | 6 | 5 | — | ||||||||||||
Derivatives: | ||||||||||||||||
Interest rate contracts | — | — | — | — | ||||||||||||
Foreign exchange contracts | 46 | — | 46 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Derivatives: | ||||||||||||||||
Foreign exchange contracts | 58 | — | 58 | — | ||||||||||||
______________________________________________ | ||||||||||||||||
(1) Includes $1,850 million of money market funds 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. | ||||||||||||||||
Schedule of financial instruments where the carrying amounts and fair values differ | The fair value of Long-term debt is classified as Level 2 of the fair value hierarchy. The following table discloses the Company's financial instruments where the carrying amounts and fair values differ (in millions): | |||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Long-term debt | $ | 4,710 | $ | 5,259 | $ | 4,799 | $ | 5,268 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Schedule of total revenue by business segments | Aon's total revenue is as follows (in millions): | |||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Risk Solutions | $ | 1,895 | $ | 1,994 | ||||
HR Solutions | 970 | 965 | ||||||
Intersegment eliminations | (18 | ) | (12 | ) | ||||
Total revenue | $ | 2,847 | $ | 2,947 | ||||
Schedule of commissions, fees and other revenues by products | Commissions, fees and other revenues by product are as follows (in millions): | |||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Retail brokerage | $ | 1,513 | $ | 1,579 | ||||
Reinsurance brokerage | 377 | 409 | ||||||
Total Risk Solutions Segment | 1,890 | 1,988 | ||||||
Consulting services | 371 | 384 | ||||||
Outsourcing | 604 | 589 | ||||||
Intrasegment | (5 | ) | (8 | ) | ||||
Total HR Solutions Segment | 970 | 965 | ||||||
Intersegment | (18 | ) | (12 | ) | ||||
Total commissions, fees and other revenue | $ | 2,842 | $ | 2,941 | ||||
Schedule of fiduciary investment income by business segments | Fiduciary investment income by segment is as follows (in millions): | |||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Risk Solutions | $ | 5 | $ | 6 | ||||
HR Solutions | — | — | ||||||
Total fiduciary investment income | $ | 5 | $ | 6 | ||||
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 March 31, | ||||||||
2015 | 2014 | |||||||
Risk Solutions | $ | 412 | $ | 445 | ||||
HR Solutions | 76 | 67 | ||||||
Segment income before income taxes | 488 | 512 | ||||||
Unallocated expenses | (47 | ) | (43 | ) | ||||
Interest income | 3 | 2 | ||||||
Interest expense | (65 | ) | (58 | ) | ||||
Other income | 42 | 1 | ||||||
Income before income taxes | $ | 421 | $ | 414 | ||||
Guarantee_of_Registered_Securi1
Guarantee of Registered Securities (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Guarantee of Registered Securities [Abstract] | |||||||||||||||||||||
Condensed Consolidating Statements of Income | Condensed Consolidating Statement of Income | ||||||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Revenue | |||||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 2,842 | $ | — | $ | 2,842 | |||||||||||
Fiduciary investment income | — | — | 5 | — | 5 | ||||||||||||||||
Total revenue | — | — | 2,847 | — | 2,847 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | 52 | 11 | 1,620 | — | 1,683 | ||||||||||||||||
Other general expenses | 13 | 2 | 708 | — | 723 | ||||||||||||||||
Total operating expenses | 65 | 13 | 2,328 | — | 2,406 | ||||||||||||||||
Operating (loss) income | (65 | ) | (13 | ) | 519 | — | 441 | ||||||||||||||
Interest income | (5 | ) | 3 | 5 | — | 3 | |||||||||||||||
Interest expense | (25 | ) | (34 | ) | (6 | ) | — | (65 | ) | ||||||||||||
Intercompany interest income (expense) | 119 | (105 | ) | (14 | ) | — | — | ||||||||||||||
Intercompany other (expense) income | (50 | ) | (8 | ) | 58 | — | — | ||||||||||||||
Other income | 2 | 8 | 32 | — | 42 | ||||||||||||||||
(Loss) income before taxes | (24 | ) | (149 | ) | 594 | — | 421 | ||||||||||||||
Income tax (benefit) expense | (5 | ) | (50 | ) | 135 | — | 80 | ||||||||||||||
(Loss) income before equity in earnings of subsidiaries | (19 | ) | (99 | ) | 459 | — | 341 | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | 347 | 403 | 304 | (1,054 | ) | — | |||||||||||||||
Net income | 328 | 304 | 763 | (1,054 | ) | 341 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 13 | — | 13 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 328 | $ | 304 | $ | 750 | $ | (1,054 | ) | $ | 328 | ||||||||||
Condensed Consolidating Statement of Income | |||||||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Revenue | |||||||||||||||||||||
Commissions, fees and other | $ | 1 | $ | — | $ | 2,940 | $ | — | $ | 2,941 | |||||||||||
Fiduciary investment income | — | — | 6 | — | 6 | ||||||||||||||||
Total revenue | 1 | — | 2,946 | — | 2,947 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | 66 | 7 | 1,678 | — | 1,751 | ||||||||||||||||
Other general expenses | 4 | 3 | 720 | — | 727 | ||||||||||||||||
Total operating expenses | 70 | 10 | 2,398 | — | 2,478 | ||||||||||||||||
Operating (loss) income | (69 | ) | (10 | ) | 548 | — | 469 | ||||||||||||||
Interest income | (2 | ) | — | 4 | — | 2 | |||||||||||||||
Interest expense | (9 | ) | (31 | ) | (18 | ) | — | (58 | ) | ||||||||||||
Intercompany interest income (expense) | 111 | (74 | ) | (37 | ) | — | — | ||||||||||||||
Intercompany other (expense) income | (19 | ) | (15 | ) | 34 | — | — | ||||||||||||||
Other income | — | — | 1 | — | 1 | ||||||||||||||||
Income (loss) before taxes | 12 | (130 | ) | 532 | — | 414 | |||||||||||||||
Income tax expense (benefit) | 3 | (50 | ) | 125 | — | 78 | |||||||||||||||
Income (loss) before equity in earnings of subsidiaries | 9 | (80 | ) | 407 | — | 336 | |||||||||||||||
Equity in earnings of subsidiaries, net of tax | 316 | 333 | 253 | (902 | ) | — | |||||||||||||||
Net income | 325 | 253 | 660 | (902 | ) | 336 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 11 | — | 11 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 325 | $ | 253 | $ | 649 | $ | (902 | ) | $ | 325 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 328 | $ | 304 | $ | 763 | $ | (1,054 | ) | $ | 341 | ||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 13 | — | 13 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 328 | $ | 304 | $ | 750 | $ | (1,054 | ) | $ | 328 | ||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Change in fair value of investments | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Change in fair value of derivatives | — | (1 | ) | 7 | — | 6 | |||||||||||||||
Foreign currency translation adjustments | — | (23 | ) | (299 | ) | — | (322 | ) | |||||||||||||
Post-retirement benefit obligation | — | 8 | 15 | — | 23 | ||||||||||||||||
Total other comprehensive loss | — | (16 | ) | (278 | ) | — | (294 | ) | |||||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | (293 | ) | (267 | ) | (283 | ) | 843 | — | |||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Total other comprehensive loss attributable to Aon shareholders | (293 | ) | (283 | ) | (560 | ) | 843 | (293 | ) | ||||||||||||
Comprehensive income attributable to Aon shareholders | $ | 35 | $ | 21 | $ | 190 | $ | (211 | ) | $ | 35 | ||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 325 | $ | 253 | $ | 660 | $ | (902 | ) | $ | 336 | ||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 11 | — | 11 | ||||||||||||||||
Net income attributable to Aon shareholders | $ | 325 | $ | 253 | $ | 649 | $ | (902 | ) | $ | 325 | ||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||
Change in fair value of investments | — | — | 1 | — | 1 | ||||||||||||||||
Change in fair value of derivatives | — | 1 | 8 | — | 9 | ||||||||||||||||
Foreign currency translation adjustments | — | (17 | ) | 33 | — | 16 | |||||||||||||||
Post-retirement benefit obligation | — | 6 | 20 | — | 26 | ||||||||||||||||
Total other comprehensive (loss) income | — | (10 | ) | 62 | — | 52 | |||||||||||||||
Equity in other comprehensive income of subsidiaries, net of tax | 54 | 69 | 59 | (182 | ) | — | |||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Total other comprehensive income attributable to Aon shareholders | 54 | 59 | 123 | (182 | ) | 54 | |||||||||||||||
Comprehensive income attributable to Aon Shareholders | $ | 379 | $ | 312 | $ | 772 | $ | (1,084 | ) | $ | 379 | ||||||||||
Condensed Consolidating Statements of Financial Position | Condensed Consolidating Statement of Financial Position | ||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2,230 | $ | 650 | $ | (2,502 | ) | $ | 378 | ||||||||||
Short-term investments | — | 166 | 177 | — | 343 | ||||||||||||||||
Receivables, net | — | — | 2,672 | — | 2,672 | ||||||||||||||||
Fiduciary assets | — | — | 10,894 | — | 10,894 | ||||||||||||||||
Intercompany receivables | 125 | 3,581 | 9,681 | (13,387 | ) | — | |||||||||||||||
Other current assets | 2 | 207 | 536 | (33 | ) | 712 | |||||||||||||||
Total Current Assets | 127 | 6,184 | 24,610 | (15,922 | ) | 14,999 | |||||||||||||||
Goodwill | — | — | 8,548 | — | 8,548 | ||||||||||||||||
Intangible assets, net | — | — | 2,410 | — | 2,410 | ||||||||||||||||
Fixed assets, net | — | — | 754 | — | 754 | ||||||||||||||||
Intercompany receivables | 7,374 | 577 | 121 | (8,072 | ) | — | |||||||||||||||
Other non-current assets | 181 | 701 | 1,589 | (793 | ) | 1,678 | |||||||||||||||
Investment in subsidiary | 4,121 | 15,391 | 1,868 | (21,380 | ) | — | |||||||||||||||
TOTAL ASSETS | $ | 11,803 | $ | 22,853 | $ | 39,900 | $ | (46,167 | ) | $ | 28,389 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Fiduciary liabilities | $ | — | $ | — | $ | 10,894 | $ | — | $ | 10,894 | |||||||||||
Short-term debt and current portion of long-term debt | 109 | 846 | 11 | — | 966 | ||||||||||||||||
Accounts payable and accrued liabilities | 2,597 | 31 | 1,265 | (2,502 | ) | 1,391 | |||||||||||||||
Intercompany payables | 246 | 9,382 | 3,759 | (13,387 | ) | — | |||||||||||||||
Other current liabilities | — | 49 | 849 | (33 | ) | 865 | |||||||||||||||
Total Current Liabilities | 2,952 | 10,308 | 16,778 | (15,922 | ) | 14,116 | |||||||||||||||
Long-term debt | 2,480 | 1,917 | 313 | — | 4,710 | ||||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,366 | 635 | — | 2,001 | ||||||||||||||||
Intercompany payables | — | 7,287 | 785 | (8,072 | ) | — | |||||||||||||||
Other non-current liabilities | 6 | 107 | 1,811 | (793 | ) | 1,131 | |||||||||||||||
TOTAL LIABILITIES | 5,438 | 20,985 | 20,322 | (24,787 | ) | 21,958 | |||||||||||||||
TOTAL AON SHAREHOLDERS' EQUITY | 6,365 | 1,868 | 19,512 | (21,380 | ) | 6,365 | |||||||||||||||
Noncontrolling interests | — | — | 66 | — | 66 | ||||||||||||||||
TOTAL EQUITY | 6,365 | 1,868 | 19,578 | (21,380 | ) | 6,431 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 11,803 | $ | 22,853 | $ | 39,900 | $ | (46,167 | ) | $ | 28,389 | ||||||||||
Condensed Consolidating Statement of Financial Position | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2,727 | $ | 1,361 | $ | (3,714 | ) | $ | 374 | ||||||||||
Short-term investments | — | 165 | 229 | — | 394 | ||||||||||||||||
Receivables, net | — | — | 2,815 | — | 2,815 | ||||||||||||||||
Fiduciary assets | — | — | 11,638 | — | 11,638 | ||||||||||||||||
Intercompany receivables | 455 | 2,814 | 9,156 | (12,425 | ) | — | |||||||||||||||
Other current assets | 2 | 226 | 407 | (33 | ) | 602 | |||||||||||||||
Total Current Assets | 457 | 5,932 | 25,606 | (16,172 | ) | 15,823 | |||||||||||||||
Goodwill | — | — | 8,860 | — | 8,860 | ||||||||||||||||
Intangible assets, net | — | — | 2,520 | — | 2,520 | ||||||||||||||||
Fixed assets, net | — | — | 765 | — | 765 | ||||||||||||||||
Intercompany receivables | 7,399 | 600 | 111 | (8,110 | ) | — | |||||||||||||||
Other non-current assets | 179 | 697 | 1,718 | (790 | ) | 1,804 | |||||||||||||||
Investment in subsidiary | 4,962 | 15,200 | 1,880 | (22,042 | ) | — | |||||||||||||||
TOTAL ASSETS | $ | 12,997 | $ | 22,429 | $ | 41,460 | $ | (47,114 | ) | $ | 29,772 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Fiduciary liabilities | $ | — | $ | — | $ | 11,638 | $ | — | $ | 11,638 | |||||||||||
Short-term debt and current portion of long-term debt | — | 767 | 16 | — | 783 | ||||||||||||||||
Accounts payable and accrued liabilities | 3,755 | 58 | 1,706 | (3,714 | ) | 1,805 | |||||||||||||||
Intercompany payables | 122 | 8,960 | 3,343 | (12,425 | ) | — | |||||||||||||||
Other current liabilities | — | 49 | 772 | (33 | ) | 788 | |||||||||||||||
Total Current Liabilities | 3,877 | 9,834 | 17,475 | (16,172 | ) | 15,014 | |||||||||||||||
Long-term debt | 2,544 | 1,917 | 338 | — | 4,799 | ||||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,396 | 745 | — | 2,141 | ||||||||||||||||
Intercompany payables | — | 7,277 | 833 | (8,110 | ) | — | |||||||||||||||
Other non-current liabilities | 5 | 125 | 1,847 | (790 | ) | 1,187 | |||||||||||||||
TOTAL LIABILITIES | 6,426 | 20,549 | 21,238 | (25,072 | ) | 23,141 | |||||||||||||||
TOTAL AON SHAREHOLDERS' EQUITY | 6,571 | 1,880 | 20,162 | (22,042 | ) | 6,571 | |||||||||||||||
Noncontrolling interests | — | — | 60 | — | 60 | ||||||||||||||||
TOTAL EQUITY | 6,571 | 1,880 | 20,222 | (22,042 | ) | 6,631 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 12,997 | $ | 22,429 | $ | 41,460 | $ | (47,114 | ) | $ | 29,772 | ||||||||||
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||||||
Aon | Aon | Other | Consolidating | ||||||||||||||||||
Non-Guarantor | |||||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 2 | $ | (188 | ) | $ | 322 | $ | — | $ | 136 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||
Sales of long-term investments | — | — | 3 | — | 3 | ||||||||||||||||
Purchase of long-term investments | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Net sales of short-term investments - non-fiduciary | — | (1 | ) | 43 | — | 42 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (21 | ) | — | (21 | ) | ||||||||||||||
Proceeds from sale of businesses | — | — | 41 | — | 41 | ||||||||||||||||
Capital expenditures | — | — | (62 | ) | — | (62 | ) | ||||||||||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | — | (2 | ) | 4 | — | 2 | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||
Share repurchase | (250 | ) | — | — | — | (250 | ) | ||||||||||||||
Advances from (to) affiliates | 157 | (385 | ) | (984 | ) | 1,212 | — | ||||||||||||||
Issuance of shares for employee benefit plans | 48 | — | — | — | 48 | ||||||||||||||||
Issuance of debt | 114 | 756 | — | — | 870 | ||||||||||||||||
Repayment of debt | — | (678 | ) | (8 | ) | — | (686 | ) | |||||||||||||
Cash dividends to shareholders | (71 | ) | — | — | — | (71 | ) | ||||||||||||||
Purchase of shares from noncontrolling interests | — | — | (5 | ) | — | (5 | ) | ||||||||||||||
Dividends paid to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Proceeds from sale-leaseback | — | — | — | — | — | ||||||||||||||||
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | (2 | ) | (307 | ) | (998 | ) | 1,212 | (95 | ) | ||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (39 | ) | — | (39 | ) | ||||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | — | (497 | ) | (711 | ) | 1,212 | 4 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | — | 2,727 | 1,361 | (3,714 | ) | 374 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 2,230 | $ | 650 | $ | (2,502 | ) | $ | 378 | ||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||||||
Other | |||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | ||||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 89 | $ | (123 | ) | $ | 23 | $ | — | $ | (11 | ) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||
Sales of long-term investments | — | 37 | 5 | — | 42 | ||||||||||||||||
Purchase of long-term investments | — | (10 | ) | — | — | (10 | ) | ||||||||||||||
Net sales of short-term investments - non-fiduciary | — | 62 | 121 | — | 183 | ||||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (5 | ) | — | (5 | ) | ||||||||||||||
Proceeds from sale of businesses | — | — | 1 | — | 1 | ||||||||||||||||
Capital expenditures | — | — | (55 | ) | — | (55 | ) | ||||||||||||||
CASH PROVIDED BY INVESTING ACTIVITIES | — | 89 | 67 | — | 156 | ||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||
Share repurchase | (600 | ) | — | — | — | (600 | ) | ||||||||||||||
Advances from (to) affiliates | 313 | (206 | ) | 65 | (172 | ) | — | ||||||||||||||
Issuance of shares for employee benefit plans | 26 | — | — | — | 26 | ||||||||||||||||
Issuance of debt | 293 | 902 | — | — | 1,195 | ||||||||||||||||
Repayment of debt | (68 | ) | (755 | ) | (6 | ) | — | (829 | ) | ||||||||||||
Cash dividends to shareholders | (53 | ) | — | — | — | (53 | ) | ||||||||||||||
Purchase of shares from noncontrolling interests | — | — | 1 | — | 1 | ||||||||||||||||
CASH (USED FOR) PROVIDED BY | (89 | ) | (59 | ) | 60 | (172 | ) | (260 | ) | ||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (24 | ) | — | (24 | ) | ||||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | — | (93 | ) | 126 | (172 | ) | (139 | ) | |||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | — | 247 | 1,246 | (1,016 | ) | 477 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 154 | $ | 1,372 | $ | (1,188 | ) | $ | 338 | ||||||||||
Basis_of_Presentation_Basis_of
Basis of Presentation Basis of Presentation (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Investments | $143 | $143 |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Details) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
USD ($) | 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 | |
Cash and Cash Equivalents and Short-Term Investments | $721 | $768 | |
Restricted Cash and Investments, Current | 127 | 169 | |
Operating funds in U.K. | 60 | 40.5 | 63 |
Cash and cash equivalents, restricted | $67 | $106 |
Other_Financial_Data_Schedule_
Other Financial Data - Schedule of Other Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other (Expense) Income | ||
Foreign currency remeasurement gain | $24 | $19 |
Gain on disposal of business | 19 | 0 |
Equity earnings | 2 | 5 |
Loss on investments | -2 | -1 |
Derivative loss | -1 | -23 |
Other | 0 | 1 |
Total | $42 | $1 |
Other_Financial_Data_Schedule_1
Other Financial Data Schedule of Allowance for Doubtful Accounts (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance at beginning of period | $74 | $90 |
Provision charged to operations | 8 | 4 |
Accounts written off, net of recoveries | -9 | -5 |
Foreign currency translation | -3 | 0 |
Balance at end of period | $70 | $89 |
Other_Financial_Data_Schedule_2
Other Financial Data Schedule of Other Current Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other Financial Data [Abstract] | ||
Taxes receivable | $218 | $99 |
Deferred tax assets | 206 | 212 |
Prepaid expenses | 158 | 164 |
Deferred project costs | 108 | 102 |
Other | 22 | 25 |
Total | $712 | $602 |
Other_Financial_Data_Schedule_3
Other Financial Data Schedule of Non-current Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other Financial Data [Abstract] | ||
Prepaid pension | $897 | $933 |
Deferred project costs | 237 | 250 |
Deferred tax assets | 146 | 144 |
Investments | 143 | 143 |
Taxes receivable | 57 | 101 |
Other | 198 | 233 |
Total | $1,678 | $1,804 |
Other_Financial_Data_Schedule_4
Other Financial Data Schedule of Other Current Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other Financial Data [Abstract] | ||
Deferred revenue | $410 | $408 |
Taxes payable | 89 | 64 |
Deferred tax liabilities | 2 | 2 |
Other | 364 | 314 |
Total | $865 | $788 |
Other_Financial_Data_Schedule_5
Other Financial Data Schedule of Other Non-current Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other Financial Data [Abstract] | ||
Deferred tax liabilities | $307 | $313 |
Taxes payable | 201 | 210 |
Deferred revenue | 186 | 167 |
Leases | 172 | 184 |
Compensation and benefits | 55 | 57 |
Other | 210 | 256 |
Total | $1,131 | $1,187 |
Acquisitions_and_Dispositions_1
Acquisitions and Dispositions - Acquisitions (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
business | business | ||
Intangible assets: | |||
Goodwill | $8,548 | $8,860 | |
Business Acquisition 1 [Member] | |||
Business Acquisition | |||
Consideration | 21 | 5 | |
Intangible assets: | |||
Goodwill | 16 | 4 | |
Other intangible assets | 1 | 4 | |
Total | 17 | 8 | |
Risk Solutions [Member] | |||
Business Acquisition | |||
Number of business acquired under business combination | 1 | 1 | |
Intangible assets: | |||
Goodwill | 5,628 | 5,911 | |
HR Solutions [Member] | |||
Business Acquisition | |||
Number of business acquired under business combination | 1 | 1 | |
Intangible assets: | |||
Goodwill | $2,920 | $2,949 |
Acquisitions_and_Dispositions_2
Acquisitions and Dispositions - Dispositions (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Dispositions | ||
Gain on disposal of business | $19 | $0 |
Risk Solutions [Member] | ||
Dispositions | ||
Number of dispositions | 1 | 1 |
Gain on disposal of business | $1 | |
HR Solutions [Member] | ||
Dispositions | ||
Number of dispositions | 1 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Changes in the net carrying amount of goodwill by operating segment (in millions) | |
Beginning balance | $8,860 |
Goodwill related to current year acquisitions | 16 |
Goodwill related to disposals | -13 |
Foreign currency translation | -315 |
Ending balance | 8,548 |
Risk Solutions [Member] | |
Changes in the net carrying amount of goodwill by operating segment (in millions) | |
Beginning balance | 5,911 |
Goodwill related to current year acquisitions | 1 |
Goodwill related to disposals | 0 |
Foreign currency translation | -284 |
Ending balance | 5,628 |
HR Solutions [Member] | |
Changes in the net carrying amount of goodwill by operating segment (in millions) | |
Beginning balance | 2,949 |
Goodwill related to current year acquisitions | 15 |
Goodwill related to disposals | -13 |
Foreign currency translation | -31 |
Ending balance | $2,920 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Intangible assets with indefinite lives | |||
Tradenames | $1,019 | $1,019 | |
Intangible assets with finite lives | |||
Intangible assets with finite lives, Gross Carrying Amount | 4,461 | 4,542 | |
Intangible assets with finite lives, Accumulated Amortization | 2,051 | 2,022 | |
Intangible assets, Net Carrying Amount | 2,410 | 2,520 | |
Amortization expense on intangible assets | 80 | 86 | |
Estimated amortization for intangible assets | |||
Remainder of 2015 | 234 | ||
2016 | 271 | ||
2017 | 227 | ||
2018 | 169 | ||
2019 | 142 | ||
Thereafter | 348 | ||
Total | 1,391 | ||
Risk Solutions [Member] | |||
Estimated amortization for intangible assets | |||
Remainder of 2015 | 80 | ||
2016 | 99 | ||
2017 | 90 | ||
2018 | 78 | ||
2019 | 69 | ||
Thereafter | 185 | ||
Total | 601 | ||
HR Solutions [Member] | |||
Estimated amortization for intangible assets | |||
Remainder of 2015 | 154 | ||
2016 | 172 | ||
2017 | 137 | ||
2018 | 91 | ||
2019 | 73 | ||
Thereafter | 163 | ||
Total | 790 | ||
Customer related and contract based [Member] | |||
Intangible assets with finite lives | |||
Intangible assets with finite lives, Gross Carrying Amount | 2,894 | 2,952 | |
Intangible assets with finite lives, Accumulated Amortization | 1,616 | 1,579 | |
Intangible assets, Net Carrying Amount | 1,278 | 1,373 | |
Marketing, technology and other [Member] | |||
Intangible assets with finite lives | |||
Intangible assets with finite lives, Gross Carrying Amount | 548 | 571 | |
Intangible assets with finite lives, Accumulated Amortization | 435 | 443 | |
Intangible assets, Net Carrying Amount | $113 | $128 |
Debt_Details
Debt (Details) | 3 Months Ended | |||||||
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 02, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
Commercial paper [Member] | Commercial paper [Member] | Domestic Line of Credit [Member] | Foreign Line of Credit [Member] | Foreign Line of Credit [Member] | Foreign Line of Credit [Member] | Commercial paper [Member] | Commercial paper [Member] | |
USD ($) | USD ($) | 2017 Facility [Member] | 2015 Facility [Member] | 2015 Facility [Member] | 2020 Facility [Member] | US Commercial Paper Program [Member] | European Multi Currency Paper Program [Member] | |
Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | USD ($) | EUR (€) | |||
USD ($) | USD ($) | EUR (€) | USD ($) | |||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $400,000,000 | $707,000,000 | € 650,000,000 | $900,000,000 | $900,000,000 | € 300,000,000 | ||
Total debt | 355,000,000 | 168,000,000 | ||||||
Weighted average commercial paper outstanding | $317,000,000 | |||||||
Weighted-average interest rates (as a percent) | 0.50% |
Income_Taxes_Income_Taxes_Deta
Income Taxes Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Contingency [Line Items] | ||
Effective income tax rate | 19.10% | 18.90% |
Decrease in uncertain tax positions | $19 | |
Amount of liability for uncertain tax positions that would impact the effective tax rate if recognized | 133 | |
Other Noncurrent Liabilities [Member] | ||
Income Tax Contingency [Line Items] | ||
Liability for uncertain tax positions, noncurrent | 186 | |
Liability for uncertain tax positions, interest | 25 | |
Liability for uncertain tax positions, penalties | $11 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 36 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Apr. 30, 2012 | Nov. 30, 2014 | |||
Common Stock Programs | |||||||
Total cost of shares purchased | $250,000,000 | ||||||
Weighted average shares outstanding | |||||||
Shares for basic earnings per share (in shares) | 284,200,000 | [1] | 303,500,000 | [1] | |||
Common stock equivalents (in shares) | 2,900,000 | 3,700,000 | |||||
Shares for diluted earnings per share (in shares) | 287,100,000 | 307,200,000 | |||||
Net income, attributable to participating securities | 2,000,000 | 3,000,000 | |||||
Number of participating securities (in shares) | 2,500,000 | 3,400,000 | |||||
Number of shares excluded from the calculation of diluted earnings per share | 0 | 0 | |||||
2012 - Share Repurchase Program [Member] | |||||||
Common Stock Programs | |||||||
Share repurchase authorization limit | 5,000,000,000 | ||||||
Shares purchased (in shares) | 2,500,000 | 7,200,000 | 64,600,000 | ||||
Average price per share of stock repurchased | $100.15 | $83.45 | |||||
Total cost of shares purchased | 250,000,000 | 600,000,000 | 4,600,000,000 | ||||
Share repurchase, remaining authorization limit | 5,400,000,000 | 5,400,000,000 | |||||
Share Repurchase Program of 2014 [Member] | |||||||
Common Stock Programs | |||||||
Share repurchase authorization limit | $5,000,000,000 | ||||||
[1] | Includes 2.5 million and 3.4 million of participating securities for the three months ended MarchB 31, 2015 and 2014, respectively. |
Shareholders_Equity_Details_2
Shareholders' Equity (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | ($3,134) | |
Other comprehensive (loss) income before reclassifications, net | -320 | |
Amounts reclassified from accumulated other comprehensive loss: | ||
Amounts reclassified from accumulated other comprehensive loss | 40 | |
Tax benefit | -13 | |
Amounts reclassified from accumulated other comprehensive loss, net | 27 | |
Net current period other comprehensive (loss) income | -293 | |
Ending balance | -3,427 | |
Change in Fair Value of Investments [Member] | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 0 | [1] |
Other comprehensive (loss) income before reclassifications, net | -1 | [1] |
Amounts reclassified from accumulated other comprehensive loss: | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | [1] |
Tax benefit | 0 | [1] |
Amounts reclassified from accumulated other comprehensive loss, net | 0 | [1] |
Net current period other comprehensive (loss) income | -1 | [1] |
Ending balance | -1 | [1] |
Change in Fair Value of Derivatives [Member] | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | -17 | [1] |
Other comprehensive (loss) income before reclassifications, net | -1 | [1] |
Amounts reclassified from accumulated other comprehensive loss: | ||
Amounts reclassified from accumulated other comprehensive loss | 11 | [1] |
Tax benefit | -4 | [1] |
Amounts reclassified from accumulated other comprehensive loss, net | 7 | [1] |
Net current period other comprehensive (loss) income | 6 | [1] |
Ending balance | -11 | [1] |
Foreign Currency Translation Adjustments [Member] | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | -335 | |
Other comprehensive (loss) income before reclassifications, net | -321 | |
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 | -321 | |
Ending balance | -656 | |
Post-Retirement Benefit Obligation [Member] | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | -2,782 | [2] |
Other comprehensive (loss) income before reclassifications, net | 3 | [2] |
Amounts reclassified from accumulated other comprehensive loss: | ||
Amounts reclassified from accumulated other comprehensive loss | 29 | [2] |
Tax benefit | -9 | [2] |
Amounts reclassified from accumulated other comprehensive loss, net | 20 | [2] |
Net current period other comprehensive (loss) income | 23 | [2] |
Ending balance | ($2,759) | [2] |
[1] | Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income. | |
[2] | Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Compensation and benefits. |
Employee_Benefits_Details
Employee Benefits (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
U.K. [Member] | ||
Defined Benefit Plan Disclosure | ||
Service cost | $0 | $0 |
Interest cost | 49 | 58 |
Expected return on plan assets | -75 | -82 |
Amortization of net actuarial loss | 10 | 13 |
Net periodic (benefit) cost | -16 | -11 |
Curtailment loss (gain) and other | 0 | 0 |
Total net periodic (benefit) cost | -16 | -11 |
Estimate of contributions to defined benefit pension plans for the current fiscal year | 65 | |
Contributions made to defined benefit pension plans | 19 | 65 |
U.S. [Member] | ||
Defined Benefit Plan Disclosure | ||
Service cost | 1 | 0 |
Interest cost | 33 | 32 |
Expected return on plan assets | -39 | -39 |
Amortization of net actuarial loss | 14 | 10 |
Net periodic (benefit) cost | 9 | 3 |
Curtailment loss (gain) and other | -1 | 1 |
Total net periodic (benefit) cost | 8 | 4 |
Estimate of contributions to defined benefit pension plans for the current fiscal year | 132 | |
Contributions made to defined benefit pension plans | 34 | 40 |
Other [Member] | ||
Defined Benefit Plan Disclosure | ||
Service cost | 0 | 0 |
Interest cost | 8 | 12 |
Expected return on plan assets | -12 | -15 |
Amortization of net actuarial loss | 3 | 2 |
Net periodic (benefit) cost | -1 | -1 |
Curtailment loss (gain) and other | 0 | -3 |
Total net periodic (benefit) cost | -1 | -4 |
Estimate of contributions to defined benefit pension plans for the current fiscal year | 23 | |
Contributions made to defined benefit pension plans | $4 | $12 |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans Share-based compensation expenses recognized (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | $90 | $102 |
Restricted share units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | 65 | 60 |
Performance share awards (bPSAsb) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | 21 | 39 |
Share options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | 0 | 0 |
Employee share purchase plans [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | $4 | $3 |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans Restricted share unit activity (Details) (Restricted share units (RSUs) [Member], USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Restricted share units (RSUs) [Member] | ||||
Non-vested share awards (in shares) | ||||
Non-vested at beginning of period | 8,381 | 9,759 | ||
Granted | 957 | 1,146 | ||
Vested | -1,714 | -1,950 | ||
Forfeited | -49 | -125 | ||
Non-vested at end of period | 7,575 | 8,830 | ||
Weighted Average Fair value (in dollars per share) | ||||
Non-vested at beginning of period | $63 | [1] | $51 | [1] |
Granted | $97 | [1] | $83 | [1] |
Vested | $59 | [1] | $51 | [1] |
Forfeited | $64 | [1] | $50 | [1] |
Non-vested at end of period | $69 | [1] | $56 | [1] |
[1] | Represents per share weighted average fair value of award at date of grant. |
ShareBased_Compensation_Plans_3
Share-Based Compensation Plans Performance Share Awards Narrative (Details) (Performance Shares [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting conditions period | 3 years |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued, percent | 0.00% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued, percent | 200.00% |
ShareBased_Compensation_Plans_4
Share-Based Compensation Plans Schedule of Performance-based plans (Details) (Performance Shares [Member], USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target PSAs granted during period | 978 | 816 | 1,135 |
Weighted average fair value per share at date of grant | $96 | $81 | $58 |
Number of shares that would be issued based on current performance levels | 978 | 1,201 | 2,197 |
Unamortized expense, based on current performance levels | $93 | $61 | $34 |
ShareBased_Compensation_Plans_5
Share-Based Compensation Plans Share options activity (Details) (Share options [Member], USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share options [Member] | ||
Share Options (in shares) | ||
Beginning outstanding | 2,300 | 3,462 |
Granted | 0 | 0 |
Exercised | -1,293 | -416 |
Forfeited and expired | -9 | -2 |
Outstanding at end of period | 998 | 3,044 |
Exercisable at end of period | 998 | 2,928 |
Weighted-Average Exercise Price (in dollars per share) | ||
Beginning outstanding | $32 | $32 |
Granted | $0 | $0 |
Exercised | $26 | $33 |
Forfeited and expired | $36 | $36 |
Outstanding at end of period | $39 | $32 |
Exercisable at end of period | $39 | $32 |
ShareBased_Compensation_Plans_6
Share-Based Compensation Plans Stock Option Narrative (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Closing share price (in dollars per share) | 96.12 | |
Aggregate intrinsic value of options outstanding | 57 | |
Unamortized deferred compensation expense | 267 | |
Remaining weighted-average amortization period | 1 year 9 months 6 days | |
Share options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average remaining contractual life | 2 years 8 months 6 days | 2 years |
ShareBased_Compensation_Plans_7
Share-Based Compensation Plans Other information related to the company's share options (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Aggregate intrinsic value of stock options exercised | $94 | $21 |
Cash received from the exercise of stock options | 34 | 14 |
Tax benefit realized from the exercise of stock options | $34 | $6 |
Derivatives_and_Hedging_Foreig
Derivatives and Hedging Foreign Exchange Risk Management Narrative (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Not Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Foreign currency exposures, maximum hedging period | 1 year |
Cash Flow Hedging [Member] | |
Derivative [Line Items] | |
Foreign currency exposures, maximum average hedging period | 2 years |
Net Investment Hedging [Member] | |
Derivative [Line Items] | |
Foreign currency exposures, maximum hedging period | 2 years |
Derivatives_and_Hedging_Intere
Derivatives and Hedging Interest Rate Management Risk Narrative (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative [Line Items] | ||
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months | $4 | |
Derivative gain (loss) | -1 | -23 |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | ||
Derivative [Line Items] | ||
Derivative gain (loss) | $7 | ($5) |
Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Interest rate fluctuations, maximum hedging period | 2 years |
Derivatives_and_Hedging_Notion
Derivatives and Hedging Notional and fair values of derivative instruments (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Derivatives, Fair Value | ||||
Notional Amount | $1,100 | $1,365 | ||
Derivative Assets | 59 | [1] | 46 | [1] |
Derivative Liabilities | 79 | [2] | 58 | [2] |
Term of derivative contract | 30 days | |||
Gross Amounts Offset in the Statement of Financial Position | -32 | -14 | ||
Net Amounts of Assets Presented in the Statement of Financial Position | 27 | [3] | 32 | [3] |
Gross Amounts Offset in the Statement of Financial Position | -32 | -14 | ||
Net Amounts of Liabilities Presented in the Statement of Financial Position | 47 | [4] | 44 | [4] |
Other Current Assets [Member] | ||||
Derivatives, Fair Value | ||||
Derivative Assets | 38 | 24 | ||
Net Amounts of Assets Presented in the Statement of Financial Position | 15 | 12 | ||
Other Noncurrent Assets [Member] | ||||
Derivatives, Fair Value | ||||
Derivative Assets | 21 | 22 | ||
Net Amounts of Assets Presented in the Statement of Financial Position | 12 | 20 | ||
Other Current Liabilities [Member] | ||||
Derivatives, Fair Value | ||||
Derivative Liabilities | 66 | 52 | ||
Net Amounts of Liabilities Presented in the Statement of Financial Position | 42 | 40 | ||
Other Noncurrent Liabilities [Member] | ||||
Derivatives, Fair Value | ||||
Derivative Liabilities | 13 | 6 | ||
Net Amounts of Liabilities Presented in the Statement of Financial Position | 5 | 4 | ||
Derivatives accounted for as hedges [Member] | ||||
Derivatives, Fair Value | ||||
Notional Amount | 919 | 1,200 | ||
Derivative Assets | 59 | [1] | 46 | [1] |
Derivative Liabilities | 79 | [2] | 58 | [2] |
Gross Amounts Offset in the Statement of Financial Position | -32 | -14 | ||
Net Amounts of Assets Presented in the Statement of Financial Position | 27 | [3] | 32 | [3] |
Gross Amounts Offset in the Statement of Financial Position | -32 | -14 | ||
Net Amounts of Liabilities Presented in the Statement of Financial Position | 47 | [4] | 44 | [4] |
Derivatives accounted for as hedges [Member] | Interest rate contracts [Member] | ||||
Derivatives, Fair Value | ||||
Notional Amount | 0 | 0 | ||
Derivative Assets | 0 | 0 | ||
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 | 0 | [3] | 0 | [3] |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | ||
Net Amounts of Liabilities Presented in the Statement of Financial Position | 0 | [4] | 0 | [4] |
Derivatives accounted for as hedges [Member] | Foreign exchange contracts [Member] | ||||
Derivatives, Fair Value | ||||
Notional Amount | 919 | 1,200 | ||
Derivative Assets | 59 | 46 | ||
Derivative Liabilities | 79 | 58 | ||
Gross Amounts Offset in the Statement of Financial Position | -32 | -14 | ||
Net Amounts of Assets Presented in the Statement of Financial Position | 27 | [3] | 32 | [3] |
Gross Amounts Offset in the Statement of Financial Position | -32 | -14 | ||
Net Amounts of Liabilities Presented in the Statement of Financial Position | 47 | [4] | 44 | [4] |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | ||||
Derivatives, Fair Value | ||||
Notional Amount | 181 | [5] | 165 | [5] |
Derivative Assets | 0 | 0 | ||
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 | 0 | [3] | 0 | [3] |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | ||
Net Amounts of Liabilities Presented in the Statement of Financial Position | $0 | [4] | $0 | [4] |
[1] | Included within Other current assets ($38 million at March 31, 2015 and $24 millionB at DecemberB 31, 2014) or Other non-current assets ($21 million at March 31, 2015 and $22 millionB at DecemberB 31, 2014). | |||
[2] | Included within Other current liabilities ($66 million at March 31, 2015 and $52 millionB at DecemberB 31, 2014) or Other non-current liabilities ($13 million at March 31, 2015 and $6 millionB at DecemberB 31, 2014). | |||
[3] | Included within Other current assets ($15 million at March 31, 2015 and $12 millionB at DecemberB 31, 2014) or Other non-current assets ($12 million at March 31, 2015 and $20 millionB at DecemberB 31, 2014). | |||
[4] | Included within Other current liabilities ($42 million at March 31, 2015 and $40 millionB at DecemberB 31, 2014) or Other non-current liabilities ($5 million at March 31, 2015 and $4 millionB at DecemberB 31, 2014). | |||
[5] | These contracts typically are for 30 day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date. |
Derivatives_and_Hedging_Schedu
Derivatives and Hedging - Schedule of amounts of derivative gains (losses) recognized in the Consolidated Financial Statements (Details) (Cash Flow Hedging [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | ($1) | ($8) |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | -11 | -21 |
Interest rate contracts [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | 0 | 0 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | -1 | 0 |
Foreign exchange contracts [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | -1 | -8 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | -10 | -21 |
Compensation and Benefits [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | 5 | 11 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | 0 | -3 |
Compensation and Benefits [Member] | Interest rate contracts [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | 0 | 0 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | 0 | 0 |
Compensation and Benefits [Member] | Foreign exchange contracts [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | 5 | 11 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | 0 | -3 |
Other General Expenses [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | -2 | 0 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | 0 | 0 |
Other General Expenses [Member] | Interest rate contracts [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | 0 | 0 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | 0 | 0 |
Other General Expenses [Member] | Foreign exchange contracts [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | -2 | 0 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | 0 | 0 |
Interest Expense [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | 0 | 0 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | -3 | 0 |
Interest Expense [Member] | Interest rate contracts [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | 0 | 0 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | -1 | 0 |
Interest Expense [Member] | Foreign exchange contracts [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | 0 | 0 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | -2 | 0 |
Other Income [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | -4 | -19 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | -8 | -18 |
Other Income [Member] | Interest rate contracts [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | 0 | 0 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | 0 | 0 |
Other Income [Member] | Foreign exchange contracts [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | -4 | -19 |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | ($8) | ($18) |
Fair_Value_Measurements_and_Fi2
Fair Value Measurements and Financial Instruments Schedule of assets and liabilities that are measured at fair value on a recurring basis (Details) (Recurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Fair Value [Member] | Money market funds and highly liquid debt securities | ||||
Assets: | ||||
Money market funds and highly liquid debt securities | $1,787 | [1] | $1,850 | [2] |
Fair Value [Member] | Money market funds [Member] | ||||
Assets: | ||||
Money market funds and highly liquid debt securities | 1,787 | 1,850 | ||
Fair Value [Member] | Corporate bonds [Member] | ||||
Assets: | ||||
Other investments | 1 | 1 | ||
Fair Value [Member] | Government bonds [Member] | ||||
Assets: | ||||
Other investments | 6 | 6 | ||
Fair Value [Member] | Equity investments [Member] | ||||
Assets: | ||||
Other investments | 10 | 11 | ||
Fair Value [Member] | Interest rate contracts [Member] | ||||
Assets: | ||||
Derivatives | 0 | 0 | ||
Fair Value [Member] | Foreign exchange contracts [Member] | ||||
Assets: | ||||
Derivatives | 59 | 46 | ||
Liabilities: | ||||
Derivatives | 79 | 58 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds and highly liquid debt securities | ||||
Assets: | ||||
Money market funds and highly liquid debt securities | 1,787 | [1] | 1,850 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate bonds [Member] | ||||
Assets: | ||||
Other investments | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government bonds [Member] | ||||
Assets: | ||||
Other investments | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity investments [Member] | ||||
Assets: | ||||
Other investments | 6 | 6 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Interest rate contracts [Member] | ||||
Assets: | ||||
Derivatives | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign exchange contracts [Member] | ||||
Assets: | ||||
Derivatives | 0 | 0 | ||
Liabilities: | ||||
Derivatives | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | Money market funds and highly liquid debt securities | ||||
Assets: | ||||
Money market funds and highly liquid debt securities | 0 | [1] | 0 | [2] |
Significant Other Observable Inputs (Level 2) [Member] | Corporate bonds [Member] | ||||
Assets: | ||||
Other investments | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | Government bonds [Member] | ||||
Assets: | ||||
Other investments | 6 | 6 | ||
Significant Other Observable Inputs (Level 2) [Member] | Equity investments [Member] | ||||
Assets: | ||||
Other investments | 4 | 5 | ||
Significant Other Observable Inputs (Level 2) [Member] | Interest rate contracts [Member] | ||||
Assets: | ||||
Derivatives | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | Foreign exchange contracts [Member] | ||||
Assets: | ||||
Derivatives | 59 | 46 | ||
Liabilities: | ||||
Derivatives | 79 | 58 | ||
Significant Unobservable Inputs (Level 3) [Member] | Money market funds and highly liquid debt securities | ||||
Assets: | ||||
Money market funds and highly liquid debt securities | 0 | [1] | 0 | [2] |
Significant Unobservable Inputs (Level 3) [Member] | Corporate bonds [Member] | ||||
Assets: | ||||
Other investments | 1 | 1 | ||
Significant Unobservable Inputs (Level 3) [Member] | Government bonds [Member] | ||||
Assets: | ||||
Other investments | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Equity investments [Member] | ||||
Assets: | ||||
Other investments | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Interest rate contracts [Member] | ||||
Assets: | ||||
Derivatives | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Foreign exchange contracts [Member] | ||||
Assets: | ||||
Derivatives | 0 | 0 | ||
Liabilities: | ||||
Derivatives | $0 | $0 | ||
[1] | Includes $1,787 million of money market funds 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. | |||
[2] | Includes $1,850 million of money market funds 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. |
Fair_Value_Measurements_and_Fi3
Fair Value Measurements and Financial Instruments Schedule of financial instruments where the carrying amounts and fair values differ (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair value of financial instrument | ||
Carrying value of total debt | $4,710 | $4,799 |
Fair value of total debt | $5,259 | $5,268 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Apr. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2014 | Sep. 14, 2010 | Mar. 31, 2015 | Mar. 31, 2015 | Jan. 02, 2014 | Mar. 31, 2015 | Jan. 26, 2015 | Dec. 02, 2014 | Jun. 01, 2007 | Dec. 31, 2014 | Jan. 26, 2015 | Dec. 02, 2014 | Jun. 01, 2007 | Dec. 31, 2014 | Jun. 01, 2007 | Mar. 31, 2015 | Dec. 27, 2012 |
USD ($) | USD ($) | Potential Claim for Pension Advisory Services [Member] | Potential Claim for Pension Advisory Services [Member] | Commitments to fund certain limited partnerships or subsidiaries [Member] | Commitments to fund certain limited partnerships or subsidiaries [Member] | Northrop Grumman Corporation [Member] | Opry Mills Mall Limited Partnership [Member] | Opry Mills Mall Limited Partnership [Member] | Philips [Member] | Philips [Member] | International Road Transport Union [Member] | International Road Transport Union [Member] | International Road Transport Union [Member] | International Road Transport Union [Member] | International Road Transport Union [Member] | International Road Transport Union [Member] | International Road Transport Union [Member] | International Road Transport Union [Member] | International Road Transport Union [Member] | International Road Transport Union [Member] | Versicherung Aktiengesellschaft [Member] | Versicherung Aktiengesellschaft [Member] | |
USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | Litigation Award [Member] | Litigation Award [Member] | Litigation Award [Member] | Litigation Award [Member] | Litigation Award [Member] | Litigation USD Denominated Award [Member] | Litigation USD Denominated Award [Member] | Litigation USD Denominated Award [Member] | Litigation USD Denominated Award [Member] | Litigation Expenses and Interest [Member] | Litigation Award [Member] | Litigation Award [Member] | |||
USD ($) | CHF | CHF | CHF | CHF | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | ||||||||||||
Legal, Guarantees and Indemnifications | |||||||||||||||||||||||
Range of possible loss, minimum | $0 | ||||||||||||||||||||||
Range of possible loss, maximum | 600,000,000 | ||||||||||||||||||||||
Damages sought | 340,000,000 | 200,000,000 | 281,000,000 | 189,000,000 | 48,000,000 | 46,000,000 | 3,000,000 | 30,000,000 | 199,000,000 | 183,000,000 | |||||||||||||
Amount of coverage for damages contended by the insurers | 50,000,000 | ||||||||||||||||||||||
Difference amount of damages sought by the client | 150,000,000 | ||||||||||||||||||||||
Damages awarded excluding interest and costs | 17,000,000 | 16,800,000 | 3,100,000 | ||||||||||||||||||||
Damages awarded | 200,000,000 | 29,000,000 | 27,900,000 | 5,000,000 | |||||||||||||||||||
Case settlement amount | 13,000,000 | 12,800,000 | 4,700,000 | ||||||||||||||||||||
Settlement, maximum liability | 9,000,000 | 8,700,000 | 115,000 | ||||||||||||||||||||
Estimate of possible loss | 67,000,000 | 45,000,000 | |||||||||||||||||||||
Maximum potential funding under commitments | 77,000,000 | 112,000,000 | 12,000,000 | 14,000,000 | |||||||||||||||||||
Letters of credit outstanding | 68,000,000 | 95,000,000 | |||||||||||||||||||||
Commitments funded | $2,000,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segment | ||
Segment Reporting Information | ||
Number of reportable segments | 2 | |
Total revenue | $2,847 | $2,947 |
Total commissions, fees and other revenue | 2,842 | 2,941 |
Total fiduciary investment income | 5 | 6 |
Operating income before income tax | 441 | 469 |
Interest income | 3 | 2 |
Interest expense | -65 | -58 |
Other income | 42 | 1 |
Income before income taxes | 421 | 414 |
Total operating segments [Member] | ||
Segment Reporting Information | ||
Operating income before income tax | 488 | 512 |
Risk Solutions [Member] | ||
Segment Reporting Information | ||
Total revenue | 1,895 | 1,994 |
Total commissions, fees and other revenue | 1,890 | 1,988 |
Total fiduciary investment income | 5 | 6 |
Operating income before income tax | 412 | 445 |
Retail brokerage [Member] | ||
Segment Reporting Information | ||
Total commissions, fees and other revenue | 1,513 | 1,579 |
Reinsurance brokerage [Member] | ||
Segment Reporting Information | ||
Total commissions, fees and other revenue | 377 | 409 |
HR Solutions [Member] | ||
Segment Reporting Information | ||
Total revenue | 970 | 965 |
Total commissions, fees and other revenue | 970 | 965 |
Total fiduciary investment income | 0 | 0 |
Operating income before income tax | 76 | 67 |
Consulting services [Member] | ||
Segment Reporting Information | ||
Total commissions, fees and other revenue | 371 | 384 |
Outsourcing [Member] | ||
Segment Reporting Information | ||
Total commissions, fees and other revenue | 604 | 589 |
Intrasegment [Member] | ||
Segment Reporting Information | ||
Total commissions, fees and other revenue | -5 | -8 |
Intersegment elimination [Member] | ||
Segment Reporting Information | ||
Total revenue | -18 | -12 |
Total commissions, fees and other revenue | -18 | -12 |
Unallocated Expense [Member] | ||
Segment Reporting Information | ||
Operating income before income tax | ($47) | ($43) |
Guarantee_of_Registered_Securi2
Guarantee of Registered Securities (Narrative) (Details) | Mar. 31, 2015 |
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] | |
Debt interest rate percentage | 3.50% |
3.125% Senior notes due 2016 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt interest rate percentage | 3.13% |
5.00% Senior notes due September 2020 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt interest rate percentage | 5.00% |
8.205% Junior subordinated deferrable interest debentures due January 2027 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt interest rate percentage | 8.21% |
6.25% Senior notes due September 2040 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt interest rate percentage | 6.25% |
4.250% Senior notes due 2042 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt interest rate percentage | 4.25% |
4.45% notes due 2043 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt interest rate percentage | 4.45% |
4.00% notes due 2023 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt interest rate percentage | 4.00% |
2.875% notes due 2026 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt interest rate percentage | 2.88% |
3.50% Notes due June 2024 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt interest rate percentage | 3.50% |
4.60% notes due May 2044 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt interest rate percentage | 4.60% |
3.50% notes due 2024 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt interest rate percentage | 3.50% |
4.60% notes due 2044 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Debt interest rate percentage | 4.60% |
Guarantee_of_Registered_Securi3
Guarantee of Registered Securities - Condensed Consolidating Statement of Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | ||
Commissions, fees and other | $2,842 | $2,941 |
Fiduciary investment income | 5 | 6 |
Total revenue | 2,847 | 2,947 |
Expenses | ||
Compensation and benefits | 1,683 | 1,751 |
Other general expenses | 723 | 727 |
Total operating expenses | 2,406 | 2,478 |
Operating income | 441 | 469 |
Interest income | 3 | 2 |
Interest expense | -65 | -58 |
Intercompany interest income (expense) | 0 | 0 |
Intercompany other (expense) income | 0 | 0 |
Other income | 42 | 1 |
Income before income taxes | 421 | 414 |
Income tax (benefit) expense | 80 | 78 |
(Loss) income before equity in earnings of subsidiaries | 341 | 336 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 |
Net income | 341 | 336 |
Less: Net income attributable to noncontrolling interests | 13 | 11 |
Net income attributable to Aon shareholders | 328 | 325 |
Aon plc [Member] | ||
Revenue | ||
Commissions, fees and other | 0 | 1 |
Fiduciary investment income | 0 | 0 |
Total revenue | 0 | 1 |
Expenses | ||
Compensation and benefits | 52 | 66 |
Other general expenses | 13 | 4 |
Total operating expenses | 65 | 70 |
Operating income | -65 | -69 |
Interest income | -5 | -2 |
Interest expense | -25 | -9 |
Intercompany interest income (expense) | 119 | 111 |
Intercompany other (expense) income | -50 | -19 |
Other income | 2 | 0 |
Income before income taxes | -24 | 12 |
Income tax (benefit) expense | -5 | 3 |
(Loss) income before equity in earnings of subsidiaries | -19 | 9 |
Equity in earnings of subsidiaries, net of tax | 347 | 316 |
Net income | 328 | 325 |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Aon shareholders | 328 | 325 |
Aon Corporation [Member] | ||
Revenue | ||
Commissions, fees and other | 0 | 0 |
Fiduciary investment income | 0 | 0 |
Total revenue | 0 | 0 |
Expenses | ||
Compensation and benefits | 11 | 7 |
Other general expenses | 2 | 3 |
Total operating expenses | 13 | 10 |
Operating income | -13 | -10 |
Interest income | 3 | 0 |
Interest expense | -34 | -31 |
Intercompany interest income (expense) | -105 | -74 |
Intercompany other (expense) income | -8 | -15 |
Other income | 8 | 0 |
Income before income taxes | -149 | -130 |
Income tax (benefit) expense | -50 | -50 |
(Loss) income before equity in earnings of subsidiaries | -99 | -80 |
Equity in earnings of subsidiaries, net of tax | 403 | 333 |
Net income | 304 | 253 |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Aon shareholders | 304 | 253 |
Other Non-Guarantor Subsidiaries [Member] | ||
Revenue | ||
Commissions, fees and other | 2,842 | 2,940 |
Fiduciary investment income | 5 | 6 |
Total revenue | 2,847 | 2,946 |
Expenses | ||
Compensation and benefits | 1,620 | 1,678 |
Other general expenses | 708 | 720 |
Total operating expenses | 2,328 | 2,398 |
Operating income | 519 | 548 |
Interest income | 5 | 4 |
Interest expense | -6 | -18 |
Intercompany interest income (expense) | -14 | -37 |
Intercompany other (expense) income | 58 | 34 |
Other income | 32 | 1 |
Income before income taxes | 594 | 532 |
Income tax (benefit) expense | 135 | 125 |
(Loss) income before equity in earnings of subsidiaries | 459 | 407 |
Equity in earnings of subsidiaries, net of tax | 304 | 253 |
Net income | 763 | 660 |
Less: Net income attributable to noncontrolling interests | 13 | 11 |
Net income attributable to Aon shareholders | 750 | 649 |
Consolidating Adjustments [Member] | ||
Revenue | ||
Commissions, fees and other | 0 | 0 |
Fiduciary investment income | 0 | 0 |
Total revenue | 0 | 0 |
Expenses | ||
Compensation and benefits | 0 | 0 |
Other general expenses | 0 | 0 |
Total operating expenses | 0 | 0 |
Operating income | 0 | 0 |
Interest income | 0 | 0 |
Interest expense | 0 | 0 |
Intercompany interest income (expense) | 0 | 0 |
Intercompany other (expense) income | 0 | 0 |
Other income | 0 | 0 |
Income before income taxes | 0 | 0 |
Income tax (benefit) expense | 0 | 0 |
(Loss) income before equity in earnings of subsidiaries | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | -1,054 | -902 |
Net income | -1,054 | -902 |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Aon shareholders | ($1,054) | ($902) |
Guarantee_of_Registered_Securi4
Guarantee of Registered Securities - Condensed Consolidating Statement of Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||
Net income | $341 | $336 |
Less: Net income attributable to noncontrolling interests | 13 | 11 |
Net income attributable to Aon shareholders | 328 | 325 |
Change in fair value of investments | -1 | 1 |
Change in fair value of derivatives | 6 | 9 |
Foreign currency translation adjustments | -322 | 16 |
Post-retirement benefit obligation | 23 | 26 |
Total other comprehensive (loss) income | -294 | 52 |
Equity in other comprehensive loss of subsidiaries, net of tax | 0 | 0 |
Less: Other comprehensive (loss) income attributable to noncontrolling interests | -1 | -2 |
Total other comprehensive (loss) income attributable to Aon shareholders | -293 | 54 |
Comprehensive income attributable to Aon shareholders | 35 | 379 |
Aon plc [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 328 | 325 |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Aon shareholders | 328 | 325 |
Change in fair value of investments | 0 | 0 |
Change in fair value of derivatives | 0 | 0 |
Foreign currency translation adjustments | 0 | 0 |
Post-retirement benefit obligation | 0 | 0 |
Total other comprehensive (loss) income | 0 | 0 |
Equity in other comprehensive loss of subsidiaries, net of tax | -293 | 54 |
Less: Other comprehensive (loss) income attributable to noncontrolling interests | 0 | 0 |
Total other comprehensive (loss) income attributable to Aon shareholders | -293 | 54 |
Comprehensive income attributable to Aon shareholders | 35 | 379 |
Aon Corporation [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 304 | 253 |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Aon shareholders | 304 | 253 |
Change in fair value of investments | 0 | 0 |
Change in fair value of derivatives | -1 | 1 |
Foreign currency translation adjustments | -23 | -17 |
Post-retirement benefit obligation | 8 | 6 |
Total other comprehensive (loss) income | -16 | -10 |
Equity in other comprehensive loss of subsidiaries, net of tax | -267 | 69 |
Less: Other comprehensive (loss) income attributable to noncontrolling interests | 0 | 0 |
Total other comprehensive (loss) income attributable to Aon shareholders | -283 | 59 |
Comprehensive income attributable to Aon shareholders | 21 | 312 |
Other Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 763 | 660 |
Less: Net income attributable to noncontrolling interests | 13 | 11 |
Net income attributable to Aon shareholders | 750 | 649 |
Change in fair value of investments | -1 | 1 |
Change in fair value of derivatives | 7 | 8 |
Foreign currency translation adjustments | -299 | 33 |
Post-retirement benefit obligation | 15 | 20 |
Total other comprehensive (loss) income | -278 | 62 |
Equity in other comprehensive loss of subsidiaries, net of tax | -283 | 59 |
Less: Other comprehensive (loss) income attributable to noncontrolling interests | -1 | -2 |
Total other comprehensive (loss) income attributable to Aon shareholders | -560 | 123 |
Comprehensive income attributable to Aon shareholders | 190 | 772 |
Consolidating Adjustments [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | -1,054 | -902 |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Aon shareholders | -1,054 | -902 |
Change in fair value of investments | 0 | 0 |
Change in fair value of derivatives | 0 | 0 |
Foreign currency translation adjustments | 0 | 0 |
Post-retirement benefit obligation | 0 | 0 |
Total other comprehensive (loss) income | 0 | 0 |
Equity in other comprehensive loss of subsidiaries, net of tax | 843 | -182 |
Less: Other comprehensive (loss) income attributable to noncontrolling interests | 0 | 0 |
Total other comprehensive (loss) income attributable to Aon shareholders | 843 | -182 |
Comprehensive income attributable to Aon shareholders | ($211) | ($1,084) |
Guarantee_of_Registered_Securi5
Guarantee of Registered Securities - Condensed Consolidating Statement of Financial Position (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
CURRENT ASSETS : | ||||
Cash and cash equivalents | $378 | $374 | $338 | $477 |
Short-term investments | 343 | 394 | ||
Receivables, net | 2,672 | 2,815 | ||
Fiduciary assets | 10,894 | 11,638 | ||
Intercompany receivables | 0 | 0 | ||
Other current assets | 712 | 602 | ||
Total Current Assets | 14,999 | 15,823 | ||
Goodwill | 8,548 | 8,860 | ||
Intangible assets, net | 2,410 | 2,520 | ||
Fixed assets, net | 754 | 765 | ||
Intercompany receivables | 0 | 0 | ||
Other non-current assets | 1,678 | 1,804 | ||
Investment in subsidiary | 0 | 0 | ||
TOTAL ASSETS | 28,389 | 29,772 | ||
CURRENT LIABILITIES | ||||
Fiduciary liabilities | 10,894 | 11,638 | ||
Short-term debt and current portion of long-term debt | 966 | 783 | ||
Accounts payable and accrued liabilities | 1,391 | 1,805 | ||
Intercompany payables | 0 | 0 | ||
Other current liabilities | 865 | 788 | ||
Total Current Liabilities | 14,116 | 15,014 | ||
Long-term debt | 4,710 | 4,799 | ||
Pension, other post-retirement and post-employment liabilities | 2,001 | 2,141 | ||
Intercompany payables | 0 | 0 | ||
Other non-current liabilities | 1,131 | 1,187 | ||
TOTAL LIABILITIES | 21,958 | 23,141 | ||
TOTAL AON SHAREHOLDERS' EQUITY | 6,365 | 6,571 | ||
Noncontrolling interests | 66 | 60 | ||
TOTAL EQUITY | 6,431 | 6,631 | ||
TOTAL LIABILITIES AND EQUITY | 28,389 | 29,772 | ||
Aon plc [Member] | ||||
CURRENT ASSETS : | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Short-term investments | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Fiduciary assets | 0 | 0 | ||
Intercompany receivables | 125 | 455 | ||
Other current assets | 2 | 2 | ||
Total Current Assets | 127 | 457 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Intercompany receivables | 7,374 | 7,399 | ||
Other non-current assets | 181 | 179 | ||
Investment in subsidiary | 4,121 | 4,962 | ||
TOTAL ASSETS | 11,803 | 12,997 | ||
CURRENT LIABILITIES | ||||
Fiduciary liabilities | 0 | 0 | ||
Short-term debt and current portion of long-term debt | 109 | 0 | ||
Accounts payable and accrued liabilities | 2,597 | 3,755 | ||
Intercompany payables | 246 | 122 | ||
Other current liabilities | 0 | 0 | ||
Total Current Liabilities | 2,952 | 3,877 | ||
Long-term debt | 2,480 | 2,544 | ||
Pension, other post-retirement and post-employment liabilities | 0 | 0 | ||
Intercompany payables | 0 | 0 | ||
Other non-current liabilities | 6 | 5 | ||
TOTAL LIABILITIES | 5,438 | 6,426 | ||
TOTAL AON SHAREHOLDERS' EQUITY | 6,365 | 6,571 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL EQUITY | 6,365 | 6,571 | ||
TOTAL LIABILITIES AND EQUITY | 11,803 | 12,997 | ||
Aon Corporation [Member] | ||||
CURRENT ASSETS : | ||||
Cash and cash equivalents | 2,230 | 2,727 | 154 | 247 |
Short-term investments | 166 | 165 | ||
Receivables, net | 0 | 0 | ||
Fiduciary assets | 0 | 0 | ||
Intercompany receivables | 3,581 | 2,814 | ||
Other current assets | 207 | 226 | ||
Total Current Assets | 6,184 | 5,932 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Intercompany receivables | 577 | 600 | ||
Other non-current assets | 701 | 697 | ||
Investment in subsidiary | 15,391 | 15,200 | ||
TOTAL ASSETS | 22,853 | 22,429 | ||
CURRENT LIABILITIES | ||||
Fiduciary liabilities | 0 | 0 | ||
Short-term debt and current portion of long-term debt | 846 | 767 | ||
Accounts payable and accrued liabilities | 31 | 58 | ||
Intercompany payables | 9,382 | 8,960 | ||
Other current liabilities | 49 | 49 | ||
Total Current Liabilities | 10,308 | 9,834 | ||
Long-term debt | 1,917 | 1,917 | ||
Pension, other post-retirement and post-employment liabilities | 1,366 | 1,396 | ||
Intercompany payables | 7,287 | 7,277 | ||
Other non-current liabilities | 107 | 125 | ||
TOTAL LIABILITIES | 20,985 | 20,549 | ||
TOTAL AON SHAREHOLDERS' EQUITY | 1,868 | 1,880 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL EQUITY | 1,868 | 1,880 | ||
TOTAL LIABILITIES AND EQUITY | 22,853 | 22,429 | ||
Other Non-Guarantor Subsidiaries [Member] | ||||
CURRENT ASSETS : | ||||
Cash and cash equivalents | 650 | 1,361 | 1,372 | 1,246 |
Short-term investments | 177 | 229 | ||
Receivables, net | 2,672 | 2,815 | ||
Fiduciary assets | 10,894 | 11,638 | ||
Intercompany receivables | 9,681 | 9,156 | ||
Other current assets | 536 | 407 | ||
Total Current Assets | 24,610 | 25,606 | ||
Goodwill | 8,548 | 8,860 | ||
Intangible assets, net | 2,410 | 2,520 | ||
Fixed assets, net | 754 | 765 | ||
Intercompany receivables | 121 | 111 | ||
Other non-current assets | 1,589 | 1,718 | ||
Investment in subsidiary | 1,868 | 1,880 | ||
TOTAL ASSETS | 39,900 | 41,460 | ||
CURRENT LIABILITIES | ||||
Fiduciary liabilities | 10,894 | 11,638 | ||
Short-term debt and current portion of long-term debt | 11 | 16 | ||
Accounts payable and accrued liabilities | 1,265 | 1,706 | ||
Intercompany payables | 3,759 | 3,343 | ||
Other current liabilities | 849 | 772 | ||
Total Current Liabilities | 16,778 | 17,475 | ||
Long-term debt | 313 | 338 | ||
Pension, other post-retirement and post-employment liabilities | 635 | 745 | ||
Intercompany payables | 785 | 833 | ||
Other non-current liabilities | 1,811 | 1,847 | ||
TOTAL LIABILITIES | 20,322 | 21,238 | ||
TOTAL AON SHAREHOLDERS' EQUITY | 19,512 | 20,162 | ||
Noncontrolling interests | 66 | 60 | ||
TOTAL EQUITY | 19,578 | 20,222 | ||
TOTAL LIABILITIES AND EQUITY | 39,900 | 41,460 | ||
Consolidating Adjustments [Member] | ||||
CURRENT ASSETS : | ||||
Cash and cash equivalents | -2,502 | -3,714 | -1,188 | -1,016 |
Short-term investments | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Fiduciary assets | 0 | 0 | ||
Intercompany receivables | -13,387 | -12,425 | ||
Other current assets | -33 | -33 | ||
Total Current Assets | -15,922 | -16,172 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Intercompany receivables | -8,072 | -8,110 | ||
Other non-current assets | -793 | -790 | ||
Investment in subsidiary | -21,380 | -22,042 | ||
TOTAL ASSETS | -46,167 | -47,114 | ||
CURRENT LIABILITIES | ||||
Fiduciary liabilities | 0 | 0 | ||
Short-term debt and current portion of long-term debt | 0 | 0 | ||
Accounts payable and accrued liabilities | -2,502 | -3,714 | ||
Intercompany payables | -13,387 | -12,425 | ||
Other current liabilities | -33 | -33 | ||
Total Current Liabilities | -15,922 | -16,172 | ||
Long-term debt | 0 | 0 | ||
Pension, other post-retirement and post-employment liabilities | 0 | 0 | ||
Intercompany payables | -8,072 | -8,110 | ||
Other non-current liabilities | -793 | -790 | ||
TOTAL LIABILITIES | -24,787 | -25,072 | ||
TOTAL AON SHAREHOLDERS' EQUITY | -21,380 | -22,042 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL EQUITY | -21,380 | -22,042 | ||
TOTAL LIABILITIES AND EQUITY | ($46,167) | ($47,114) |
Guarantee_of_Registered_Securi6
Guarantee of Registered Securities - Condensed Consolidating Statement of Cash Flows (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $136 | ($11) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of long-term investments | 3 | 42 |
Purchases of long-term investments | -1 | -10 |
Net sales of short-term investments - non-fiduciary | 42 | 183 |
Acquisition of businesses, net of cash acquired | -21 | -5 |
Proceeds from sale of businesses | 41 | 1 |
Capital expenditures | -62 | -55 |
CASH PROVIDED BY INVESTING ACTIVITIES | 2 | 156 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share repurchase | -250 | -600 |
Advances from (to) affiliates | 0 | 0 |
Issuance of shares for employee benefit plans | 48 | 26 |
Issuance of debt | 870 | 1,195 |
Repayment of debt | -686 | -829 |
Cash dividends to shareholders | -71 | -53 |
Purchase of shares from noncontrolling interests | -5 | 1 |
Dividends paid to noncontrolling interests | -1 | 0 |
Proceeds from sale-leaseback | 0 | |
CASH USED FOR FINANCING ACTIVITIES | -95 | -260 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -39 | -24 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 4 | -139 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 374 | 477 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 378 | 338 |
Aon plc [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 2 | 89 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of long-term investments | 0 | 0 |
Purchases of long-term investments | 0 | 0 |
Net 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 PROVIDED BY INVESTING ACTIVITIES | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share repurchase | -250 | -600 |
Advances from (to) affiliates | 157 | 313 |
Issuance of shares for employee benefit plans | 48 | 26 |
Issuance of debt | 114 | 293 |
Repayment of debt | 0 | -68 |
Cash dividends to shareholders | -71 | -53 |
Purchase of shares from noncontrolling interests | 0 | 0 |
Dividends paid to noncontrolling interests | 0 | |
Proceeds from sale-leaseback | 0 | |
CASH USED FOR FINANCING ACTIVITIES | -2 | -89 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 0 | 0 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 0 | 0 |
Aon Corporation [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | -188 | -123 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of long-term investments | 0 | 37 |
Purchases of long-term investments | -1 | -10 |
Net sales of short-term investments - non-fiduciary | -1 | 62 |
Acquisition of businesses, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses | 0 | 0 |
Capital expenditures | 0 | 0 |
CASH PROVIDED BY INVESTING ACTIVITIES | -2 | 89 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share repurchase | 0 | 0 |
Advances from (to) affiliates | -385 | -206 |
Issuance of shares for employee benefit plans | 0 | 0 |
Issuance of debt | 756 | 902 |
Repayment of debt | -678 | -755 |
Cash dividends to shareholders | 0 | 0 |
Purchase of shares from noncontrolling interests | 0 | 0 |
Dividends paid to noncontrolling interests | 0 | |
Proceeds from sale-leaseback | 0 | |
CASH USED FOR FINANCING ACTIVITIES | -307 | -59 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -497 | -93 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 2,727 | 247 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 2,230 | 154 |
Other Non-Guarantor Subsidiaries [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 322 | 23 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of long-term investments | 3 | 5 |
Purchases of long-term investments | 0 | 0 |
Net sales of short-term investments - non-fiduciary | 43 | 121 |
Acquisition of businesses, net of cash acquired | -21 | -5 |
Proceeds from sale of businesses | 41 | 1 |
Capital expenditures | -62 | -55 |
CASH PROVIDED BY INVESTING ACTIVITIES | 4 | 67 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share repurchase | 0 | 0 |
Advances from (to) affiliates | -984 | 65 |
Issuance of shares for employee benefit plans | 0 | 0 |
Issuance of debt | 0 | 0 |
Repayment of debt | -8 | -6 |
Cash dividends to shareholders | 0 | 0 |
Purchase of shares from noncontrolling interests | -5 | 1 |
Dividends paid to noncontrolling interests | -1 | |
Proceeds from sale-leaseback | 0 | |
CASH USED FOR FINANCING ACTIVITIES | -998 | 60 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -39 | -24 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -711 | 126 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 1,361 | 1,246 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 650 | 1,372 |
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 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 PROVIDED BY INVESTING ACTIVITIES | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Share repurchase | 0 | 0 |
Advances from (to) affiliates | 1,212 | -172 |
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 | |
Proceeds from sale-leaseback | 0 | |
CASH USED FOR FINANCING ACTIVITIES | 1,212 | -172 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 1,212 | -172 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | -3,714 | -1,016 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | ($2,502) | ($1,188) |