Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | Aon plc | ||
Entity Central Index Key | 315,293 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 246,180,510 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 34,061,029,792 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | |||||||||||
Total revenue | $ 2,909 | $ 2,340 | $ 2,368 | $ 2,381 | $ 2,650 | $ 2,201 | $ 2,282 | $ 2,276 | $ 9,998 | $ 9,409 | $ 9,480 |
Expenses | |||||||||||
Compensation and benefits | 6,089 | 5,687 | 5,605 | ||||||||
Information technology | 419 | 386 | 389 | ||||||||
Premises | 348 | 343 | 362 | ||||||||
Depreciation of fixed assets | 187 | 162 | 164 | ||||||||
Amortization and impairment of intangible assets | 704 | 157 | 173 | ||||||||
Other general expenses | 1,272 | 1,036 | 1,200 | ||||||||
Total operating expenses | 9,019 | 7,771 | 7,893 | ||||||||
Operating income | 489 | 265 | (118) | 343 | 463 | 368 | 387 | 420 | 979 | 1,638 | 1,587 |
Interest income | 27 | 9 | 14 | ||||||||
Interest expense | (282) | (282) | (273) | ||||||||
Other income (expense) | (39) | 36 | 100 | ||||||||
Income from continuing operations before income taxes | 685 | 1,401 | 1,428 | ||||||||
Income taxes | 250 | 148 | 175 | ||||||||
Net income from continuing operations | 17 | 196 | (43) | 265 | 384 | 284 | 273 | 312 | 435 | 1,253 | 1,253 |
Income from discontinued operations, net of tax | (29) | (4) | 821 | 40 | 75 | 42 | 35 | 25 | 828 | 177 | 169 |
Net income | (12) | 192 | 778 | 305 | 459 | 326 | 308 | 337 | 1,263 | 1,430 | 1,422 |
Less: Net income attributable to noncontrolling interests | 7 | 7 | 9 | 14 | 7 | 7 | 8 | 12 | 37 | 34 | 37 |
Net income attributable to Aon shareholders | $ (19) | $ 185 | $ 769 | $ 291 | $ 452 | $ 319 | $ 300 | $ 325 | $ 1,226 | $ 1,396 | $ 1,385 |
Basic net income per share attributable to Aon shareholders | |||||||||||
Basic net income per share attributable to Aon shareholders, continuing operations (in dollars per share) | $ 0.04 | $ 0.74 | $ (0.20) | $ 0.95 | $ 1.42 | $ 1.03 | $ 0.99 | $ 1.11 | $ 1.54 | $ 4.55 | $ 4.33 |
Basic net income per share attributable to Aon shareholders, discontinued operations (in dollars per share) | (0.12) | (0.02) | 3.13 | 0.15 | 0.28 | 0.16 | 0.13 | 0.09 | 3.20 | 0.66 | 0.60 |
Basic net income per share attributable to Aon shareholders (in dollars per share) | (0.08) | 0.72 | 2.93 | 1.10 | 1.70 | 1.19 | 1.12 | 1.20 | 4.74 | 5.21 | 4.93 |
Diluted net income per share attributable to Aon shareholders | |||||||||||
Diluted net income per share attributable to Aon shareholders, continuing operations (in dollars per share) | 0.04 | 0.73 | (0.20) | 0.94 | 1.40 | 1.03 | 0.98 | 1.10 | 1.53 | 4.51 | 4.28 |
Diluted net income per share attributable to Aon shareholders, discontinued operations (in dollars per share) | (0.11) | (0.01) | 3.13 | 0.15 | 0.28 | 0.15 | 0.13 | 0.09 | 3.17 | 0.65 | 0.60 |
Diluted net income per share attributable to Aon shareholders (in dollars per share) | $ (0.07) | $ 0.72 | $ 2.93 | $ 1.09 | $ 1.68 | $ 1.18 | $ 1.11 | $ 1.19 | 4.70 | 5.16 | 4.88 |
Cash dividends per share paid on ordinary shares (in dollars per share) | $ 1.41 | $ 1.29 | $ 1.15 | ||||||||
Weighted average ordinary shares outstanding - basic (in shares) | 258.5 | 268.1 | 280.8 | ||||||||
Weighted average ordinary shares outstanding - diluted (in shares) | 260.7 | 270.3 | 283.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ (12) | $ 192 | $ 778 | $ 305 | $ 459 | $ 326 | $ 308 | $ 337 | $ 1,263 | $ 1,430 | $ 1,422 |
Less: Net income attributable to noncontrolling interests | 7 | 7 | 9 | 14 | 7 | 7 | 8 | 12 | 37 | 34 | 37 |
Net income attributable to Aon shareholders | $ (19) | $ 185 | $ 769 | $ 291 | $ 452 | $ 319 | $ 300 | $ 325 | 1,226 | 1,396 | 1,385 |
Other comprehensive income (loss), net of tax: | |||||||||||
Change in fair value of financial instruments | 12 | (12) | (8) | ||||||||
Foreign currency translation adjustments | 390 | (495) | (442) | ||||||||
Postretirement benefit obligation | 19 | 16 | 155 | ||||||||
Total other comprehensive income (loss) | 421 | (491) | (295) | ||||||||
Less: Other comprehensive income attributable to noncontrolling interests | 5 | (2) | (6) | ||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | 416 | (489) | (289) | ||||||||
Comprehensive income attributable to Aon shareholders | $ 1,642 | $ 907 | $ 1,096 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 756 | $ 426 |
Short-term investments | 529 | 290 |
Receivables, net | 2,478 | 2,106 |
Fiduciary assets | 9,625 | 8,959 |
Other current assets | 289 | 247 |
Current assets of discontinued operations | 0 | 1,118 |
Total Current Assets | 13,677 | 13,146 |
Goodwill | 8,358 | 7,410 |
Intangible assets, net | 1,733 | 1,890 |
Fixed assets, net | 564 | 550 |
Deferred tax assets | 389 | 325 |
Prepaid pension | 1,060 | 858 |
Other non-current assets | 307 | 360 |
Non-current assets of discontinued operations | 0 | 2,076 |
TOTAL ASSETS | 26,088 | 26,615 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 1,961 | 1,604 |
Short-term debt and current portion of long-term debt | 299 | 336 |
Fiduciary liabilities | 9,625 | 8,959 |
Other current liabilities | 870 | 656 |
Current liabilities of discontinued operations | 0 | 940 |
Total Current Liabilities | 12,755 | 12,495 |
Long-term debt | 5,667 | 5,869 |
Deferred tax liabilities | 127 | 101 |
Pension, other postretirement, and postemployment liabilities | 1,789 | 1,760 |
Other non-current liabilities | 1,102 | 719 |
Non-current liabilities of discontinued operations | 0 | 139 |
TOTAL LIABILITIES | 21,440 | 21,083 |
EQUITY | ||
Ordinary shares - $0.01 nominal value Authorized: 750 shares (issued: 2017 - 247.6; 2016 - 262.0) | 2 | 3 |
Additional paid-in capital | 5,775 | 5,577 |
Retained earnings | 2,302 | 3,807 |
Accumulated other comprehensive loss | (3,496) | (3,912) |
TOTAL AON SHAREHOLDERS' EQUITY | 4,583 | 5,475 |
Noncontrolling interests | 65 | 57 |
TOTAL EQUITY | 4,648 | 5,532 |
TOTAL LIABILITIES AND EQUITY | $ 26,088 | $ 26,615 |
Consolidated Statements of Fin5
Consolidated Statements of Financial Position (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, nominal or par value (in dollars per share) | $ 0.01 | $ 0.01 |
Ordinary shares, Authorized shares | 750,000,000 | 750,000,000 |
Ordinary shares, issued shares | 247,600,000 | 262,000,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Ordinary Shares and Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Tax | Non-controlling Interests |
Balance (in shares) at Dec. 31, 2014 | 280 | ||||
Balance at Dec. 31, 2014 | $ 6,527 | $ 5,100 | $ 4,501 | $ (3,134) | $ 60 |
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 1,422 | 1,385 | 37 | ||
Shares issued - employee stock compensation plans (in shares) | 5.8 | ||||
Shares issued — employee stock compensation plans | (155) | $ (155) | |||
Shares purchased (in shares) | (16) | ||||
Shares purchased | (1,550) | (1,550) | |||
Tax benefit — employee benefit plans | 126 | $ 126 | |||
Share-based compensation expense | 340 | 340 | |||
Dividends to shareholders | (323) | (323) | |||
Net change in fair value of financial instruments | (8) | ||||
Net change in fair value of financial instruments | (8) | (8) | |||
Net foreign currency translation adjustments | (442) | (436) | (6) | ||
Net postretirement benefit obligation | 155 | 155 | |||
Net sales (purchases) of shares from noncontrolling interests | (6) | $ 1 | (7) | ||
Dividends paid to noncontrolling interests on subsidiary common stock | (27) | (27) | |||
Balance (in shares) at Dec. 31, 2015 | 269.8 | ||||
Balance at Dec. 31, 2015 | 6,059 | $ 5,412 | 4,013 | (3,423) | 57 |
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 1,430 | 1,396 | 34 | ||
Shares issued - employee stock compensation plans (in shares) | 4.3 | ||||
Shares issued — employee stock compensation plans | (125) | $ (125) | |||
Shares purchased (in shares) | (12.1) | ||||
Shares purchased | (1,257) | (1,257) | |||
Tax benefit — employee benefit plans | (4) | $ (4) | |||
Share-based compensation expense | 331 | 331 | |||
Dividends to shareholders | (345) | (345) | |||
Net change in fair value of financial instruments | (12) | (12) | |||
Net foreign currency translation adjustments | (495) | (493) | (2) | ||
Net postretirement benefit obligation | 16 | 16 | |||
Net sales (purchases) of shares from noncontrolling interests | (38) | $ (34) | (4) | ||
Dividends paid to noncontrolling interests on subsidiary common stock | $ (28) | (28) | |||
Balance (in shares) at Dec. 31, 2016 | 262 | 262 | |||
Balance at Dec. 31, 2016 | $ 5,532 | $ 5,580 | 3,807 | (3,912) | 57 |
Increase (Decrease) in Shareholders' Equity | |||||
Adoption of new accounting guidance | 49 | 0 | 49 | 0 | 0 |
Balance at January 1, 2017 | 5,581 | $ 5,580 | 3,856 | (3,912) | 57 |
Net income | 1,263 | 1,226 | 37 | ||
Shares issued - employee stock compensation plans (in shares) | 3.6 | ||||
Shares issued — employee stock compensation plans | (121) | $ (120) | (1) | ||
Shares purchased (in shares) | (18) | ||||
Shares purchased | (2,415) | (2,415) | |||
Share-based compensation expense | 321 | $ 321 | |||
Dividends to shareholders | (364) | (364) | |||
Net change in fair value of financial instruments | 12 | 12 | |||
Net foreign currency translation adjustments | 390 | 385 | 5 | ||
Net postretirement benefit obligation | 19 | 19 | |||
Net sales (purchases) of shares from noncontrolling interests | (11) | $ (4) | (7) | ||
Dividends paid to noncontrolling interests on subsidiary common stock | $ (27) | (27) | |||
Balance (in shares) at Dec. 31, 2017 | 247.6 | 247.6 | |||
Balance at Dec. 31, 2017 | $ 4,648 | $ 5,777 | $ 2,302 | $ (3,496) | $ 65 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 1,263 | $ 1,430 | $ 1,422 |
Income from discontinued operations, net of tax | 828 | 177 | 169 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Loss (gain) from sales of businesses and investments, net | 16 | (39) | (81) |
Depreciation of fixed assets | 187 | 162 | 164 |
Amortization and impairment of intangible assets | 704 | 157 | 174 |
Share-based compensation expense | 319 | 306 | 320 |
Deferred income taxes | (18) | (24) | (223) |
Change in assets and liabilities: | |||
Fiduciary receivables | 171 | 595 | 599 |
Short-term investments — funds held on behalf of clients | (135) | (540) | 206 |
Fiduciary liabilities | (36) | (55) | (805) |
Receivables, net | (254) | (105) | (97) |
Accounts payable and accrued liabilities | 96 | 53 | 88 |
Restructuring reserves | 172 | 0 | 0 |
Current income taxes | (914) | (42) | 24 |
Pension, other postretirement and other postemployment liabilities | (66) | 42 | (230) |
Other assets and liabilities | (8) | 66 | 110 |
Cash provided by operating activities - continuing operations | 669 | 1,829 | 1,502 |
Cash provided by operating activities - discontinued operations | 65 | 497 | 507 |
CASH PROVIDED BY OPERATING ACTIVITIES | 734 | 2,326 | 2,009 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from investments | 68 | 43 | 220 |
Payments for investments | (64) | (64) | (266) |
Net sales (purchases) of short-term investments — non-fiduciary | (232) | 61 | 9 |
Acquisition of businesses, net of cash acquired | (1,029) | (879) | (16) |
Sale of businesses, net of cash sold | 4,246 | 107 | 205 |
Capital expenditures | (183) | (156) | (200) |
Cash provided by (used for) investing activities - continuing operations | 2,806 | (888) | (48) |
Cash provided by (used for) investing activities - discontinued operations | (19) | (66) | (90) |
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | 2,787 | (954) | (138) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Share repurchase | (2,399) | (1,257) | (1,550) |
Issuance of shares for employee benefit plans | (121) | (129) | (30) |
Issuance of debt | 1,654 | 3,467 | 5,351 |
Repayment of debt | (1,999) | (2,945) | (5,098) |
Cash dividends to shareholders | (364) | (345) | (323) |
Noncontrolling interests and other financing activities | (36) | (77) | (39) |
Cash used for financing activities - continuing operations | (3,265) | (1,286) | (1,689) |
Cash used for financing activities - discontinued operations | 0 | 0 | 0 |
CASH USED FOR FINANCING ACTIVITIES | (3,265) | (1,286) | (1,689) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 69 | (39) | (172) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 325 | 47 | 10 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 431 | 384 | 374 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 756 | 431 | 384 |
Supplemental disclosures: | |||
Interest paid | 272 | 272 | 254 |
Income taxes paid, net of refunds | $ 1,182 | $ 218 | $ 249 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements and Notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Consolidated Financial Statements include the accounts of Aon plc and its controlled subsidiaries (“Aon” or the “Company”). Intercompany accounts and transactions have been eliminated. The 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. Discontinued Operations On February 9, 2017, the Company entered into a Purchase Agreement (the “Purchase Agreement”) with Tempo Acquisition, LLC (the “Buyer”), an entity formed and controlled by affiliates of The Blackstone Group L.P. Pursuant to the Purchase Agreement, the Company sold its benefits administration and business process outsourcing business (the “Divested Business”) to the Buyer and certain designated purchasers that are direct or indirect subsidiaries of the Buyer (the “Transaction”). As a result, the Divested Business’s financial results are reflected in the Consolidated Statements of Income, Consolidated Statements of Financial Position, and Consolidated Statements of Cash Flows, retrospectively, as discontinued operations beginning in the first quarter of 2017. Additionally, all of the Notes to Consolidated Financial Statements have been retrospectively restated to only include the impacts of continuing operations, unless noted otherwise. The Transaction closed on May 1, 2017. Refer to Note 4 “Discontinued Operations” for additional information. Reportable Segments Beginning in the first quarter of 2017, the Company began operating as one segment that includes all of Aon’s continuing operations, which provides advice and solutions to clients focused on risk, retirement, and health through five revenue lines that make up the Company’s principal products and services. Refer to Note 17 “Segment Information” for additional information. As a result of these initiatives, Aon made the following changes to its presentation of the Consolidated Statements of Income beginning in the first quarter of 2017: • Commissions, fees and other and Fiduciary investment income are now reported as one Total revenue line item; and • Other general expenses has been further broken out to provide greater clarity into charges related to Information technology, Premises, Depreciation of fixed assets, and Amortization and impairment of intangible assets. Prior period comparable financial information has been reclassified to conform to this presentation. The Company believes this presentation provides greater clarity into the risks and opportunities that management believes are important and allows users of the financial statements to assess the performance in the same way as the Chief Operating Decision Maker (the “CODM”). Other Beginning in the first quarter of 2017, the Company began presenting Shares issued - employee benefit plans and Shares issued - employee compensation as one line item on the Consolidated Statements of Shareholders’ Equity titled Shares issued - employee stock compensation plans. Use of Estimates The preparation of the accompanying Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the financial statements in future periods. |
Summary of Significant Accounti
Summary of Significant Accounting Principles and Practices | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Principles and Practices | Summary of Significant Accounting Principles and Practices Principles of Consolidation The accompanying consolidated financial statements include the accounts of Aon plc and those entities in which the Company has a controlling financial interest. To determine if Aon holds a controlling financial interest in an entity, the Company first evaluates if it is required to apply the variable interest entity (VIE) model to the entity, otherwise, the entity is evaluated under the voting interest model. Where Aon holds rights that give it the power to direct the activities of a VIE that most significantly impact the VIE's economic performance, combined with a variable interest that gives the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, the Company has a controlling financial interest in that VIE. Aon holds a controlling financial interest in entities that are not VIEs where it, directly or indirectly, holds more than 50% of the voting rights or where it exercises control through substantive participating rights or as a general partner. Revenue Recognition Revenues are recognized when they are earned and realized or realizable. The Company considers revenues to be earned and realized or realizable when all of the following four conditions are met: (1) persuasive evidence of an arrangement exists, (2) the arrangement fee is fixed or determinable, (3) delivery or performance has occurred, and (4) collectibility is reasonably assured. For brokerage commissions, revenue is typically recognized at the completion of the placement process or over a period of time based on the transfer of value to customers or as the remuneration becomes determinable, assuming all four criteria required to recognize revenue have been met. The placement process is typically considered complete on the effective date of the related policy. Commission revenues are recorded net of allowances for estimated policy cancellations, which are determined based on an evaluation of historical and current cancellation data. Fees paid by clients for consulting or other non-brokerage services are typically charged on an hourly, project or fixed-fee basis. Revenues from time-and-materials or cost-plus arrangements are recognized as services are performed, assuming all four criteria to recognize revenue have been met. Revenues from fixed-fee contracts are recognized as services are provided using a proportional-performance model or at the completion of a project based on facts and circumstances of the client arrangement. Revenues from investment income on funds held on behalf of clients are recognized as services are performed, assuming all four criteria to recognize revenue have been met. Reimbursements received for out-of-pocket expenses are recorded as a component of revenues. Revenues from health care exchange arrangements are typically recognized upon successful enrollment of participants, net of a reserve for estimated cancellations, assuming all four criteria to recognize revenue have been met. Share-Based Compensation Costs Share-based payments to employees, including grants of restricted share units and performance share awards, are measured based on estimated grant date fair value. The Company recognizes compensation expense over the requisite service period for awards expected to ultimately vest. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates. Pension and Other Postretirement Benefits The Company records net period cost relating to its pension and other postretirement benefit plans based on calculations that include various actuarial assumptions, including discount rates, assumed rates of return on plan assets, inflation rates, mortality rates, compensation increases, and turnover rates. The Company reviews its actuarial assumptions on an annual basis and modifies these assumptions based on current rates and trends. The effects of gains, losses, and prior service costs and credits are amortized over future service periods or future estimated lives if the plans are frozen. The funded status of each plan, calculated as the fair value of plan assets less the benefit obligation, is reflected in the Company’s Consolidated Statements of Financial Position using a December 31 measurement date. Net Income per Share Basic net income per share is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding, including participating securities, which consist of unvested share awards with non-forfeitable rights to dividends. Diluted net income per share is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding, which have been adjusted for the dilutive effect of potentially issuable ordinary shares (excluding those that are considered participating securities), including certain contingently issuable shares. The diluted earnings per share calculation reflects the more dilutive effect of either (1) the two-class method that assumes that the participating securities have not been exercised, or (2) the treasury stock method. Potentially issuable shares are not included in the computation of diluted income per share if their inclusion would be antidilutive. 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 consist of money market funds. The estimated fair value of Cash and cash equivalents and Short-term investments approximates their carrying values. At December 31, 2017 , Cash and cash equivalents and Short-term investments totaled $1,285 million compared to $716 million at December 31, 2016 . Of the total balance, $96 million and $82 million was restricted as to its use at December 31, 2017 and 2016 , respectively. Included within the December 31, 2017 and 2016 balances, respectively, were £42.7 million ( $57.1 million at December 31, 2017 exchanges rates) and £43.3 million ( $53.2 million at December 31, 2016 exchange rates) of operating funds required to be held by the Company in the U.K. by the FCA, which were included in Short-term investments. Fiduciary Assets and Liabilities In its capacity as an insurance agent and broker, Aon collects premiums from insureds and, after deducting its commission, remits the premiums to the respective insurers. Aon also collects claims or refunds from insurers on behalf of insureds. Uncollected premiums from insureds and uncollected claims or refunds from insurers are recorded as Fiduciary assets in the Company’s Consolidated Statements of Financial Position. Unremitted insurance premiums and claims are held in a fiduciary capacity and the obligation to remit these funds is recorded as Fiduciary liabilities in the Company’s Consolidated Statements of Financial Position. Aon maintained premium trust balances for premiums collected from insureds but not yet remitted to insurance companies of $3.7 billion and $3.3 billion at December 31, 2017 and 2016 , respectively. These funds and a corresponding liability are included in Fiduciary assets and Fiduciary liabilities, respectively, in the accompanying Consolidated Statements of Financial Position. Allowance for Doubtful Accounts The Company’s allowance for doubtful accounts with respect to receivables is based on a combination of factors, including evaluation of historical write-offs, aging of balances, and other qualitative and quantitative analyses. Receivables, net included an allowance for doubtful accounts of $59 million and $56 million at December 31, 2017 and 2016 , respectively. Fixed Assets Fixed assets are stated at cost, less accumulated depreciation. Included in this category is internal use software, which is software that is acquired, internally-developed or modified solely to meet internal needs, with no plan to market externally. Costs related to directly obtaining, developing, or upgrading internal use software are capitalized. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are generally as follows: Asset Description Expected Life Software Lesser of the life of an associated license, or 4 to 7 years Leasehold improvements Lesser of estimated useful life or lease term, not to exceed 10 years Furniture, fixtures and equipment 4 to 10 years Computer equipment 4 to 6 years Buildings 35 years Automobiles 6 years Goodwill and Intangible Assets Goodwill represents the excess of acquisition cost over the fair value of the net assets in the acquisition of a business. Goodwill is allocated to various reporting units, which are one reporting level below the operating segment. Upon disposition of a business entity, goodwill is allocated to the disposed entity based on the fair value of that entity compared to the fair value of the reporting unit in which it was included. Goodwill is not amortized, but instead is tested for impairment at least annually. The goodwill impairment test is performed at the reporting unit level. The Company initially performs a qualitative analysis to determine if it is more likely than not that the goodwill balance is impaired. If such a determination is made, then the Company will perform a two-step quantitative analysis. First, the fair value of each reporting unit is compared to its carrying value. If the fair value of the reporting unit is less than its carrying value, the Company performs a hypothetical purchase price allocation based on the reporting unit’s fair value to determine the fair value of the reporting unit’s goodwill. Any resulting difference will be a charge to Amortization and impairment of intangible assets in the Consolidated Statements of Income in the period in which the determination is made. Fair value is determined using a combination of present value techniques and market prices of comparable businesses. Intangible assets are comprised primarily of customer-related and contract-based, tradenames and technology assets. Amortization basis and estimated useful lives by intangible asset type are generally as follows: Intangible Asset Description Amortization Basis Expected Life Customer related and contract based In line with underlying cash flows 7 to 20 years Tradenames Straight-line 1 to 3 years Technology Straight-line 5 to 7 years Derivatives Derivative instruments are recognized in the Consolidated Statements of Financial Position at fair value. Where the Company has entered into master netting agreements with counterparties, the derivative positions are netted by counterparty and are reported accordingly in Other assets or Other liabilities. Changes in the fair value of derivative instruments are recognized in earnings each period, unless the derivative is designated and qualifies as a cash flow or net investment hedge. The Company has historically designated the following hedging relationships for certain transactions: (i) a hedge of the change in fair value of a recognized asset or liability or firm commitment (“fair value hedge”), (ii) a hedge of the variability in cash flows from a recognized variable-rate asset or liability or forecasted transaction (“cash flow hedge”), and (iii) a hedge of the net investment in a foreign operation (“net investment hedge”). In order for a derivative to qualify for hedge accounting, the derivative must be formally designated as a fair value, cash flow, or a net investment hedge by documenting the relationship between the derivative and the hedged item. The documentation must include a description of the hedging instrument, the hedged item, the risk being hedged, Aon’s risk management objective and strategy for undertaking the hedge, the method for assessing the effectiveness of the hedge, and the method for measuring hedge ineffectiveness. Additionally, the hedge relationship must be expected to be highly effective at offsetting changes in either the fair value or cash flows of the hedged item at both the inception of the hedge and on an ongoing basis. Aon assesses the ongoing effectiveness of its hedges and measures and records hedge ineffectiveness, if any, at the end of each quarter or more frequently if facts and circumstances require. For a derivative designated as a fair value hedging instrument, the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. The effect is to reflect in earnings the extent to which the hedge is not effective in achieving offsetting changes in fair value. For a cash flow hedge that qualifies for hedge accounting, the effective portion of the change in fair value of a hedging instrument is recognized in Other comprehensive income (“OCI”) and subsequently reclassified to earnings in the same period the hedged item impacts earnings. The ineffective portion of the change in fair value is recognized immediately in earnings. For a net investment hedge, the effective portion of the change in fair value of the hedging instrument is recognized in OCI as part of the cumulative translation adjustment, while the ineffective portion is recognized immediately in earnings. Changes in the fair value of a derivative that is not designated as part of a hedging relationship (commonly referred to as an “economic hedge”) are recorded in Other income (expense) in the Consolidated Statements of Income. The Company discontinues hedge accounting prospectively when (1) the derivative expires or is sold, terminated, or exercised, (2) the qualifying criteria are no longer met, or (3) management removes the designation of the hedging relationship. Foreign Currency Certain of the Company’s non-U.S. operations use their respective local currency as their functional currency. These operations that do not have the U.S. dollar as their functional currency translate their financial statements at the current rates of exchange in effect at the balance sheet date and revenues and expenses using rates that approximate those in effect during the period. The resulting translation adjustments are included in net foreign currency translation adjustments within the Consolidated Statements of Shareholders’ Equity. Gains and losses from the remeasurement of monetary assets and liabilities that are denominated in a non-functional currency are included in Other income (expense) within the Company’s Consolidated Statements of Income. Income Taxes Deferred income taxes are recognized for the effect of temporary differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted marginal tax rates and laws that are currently in effect. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in the period when the rate change is enacted. Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. Deferred tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred tax assets are future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carry-forwards, taxable income in carry-back years, and tax planning strategies that are both prudent and feasible. The Company recognizes the effect of income tax positions only if sustaining those positions is more likely than not. Tax positions that meet the more likely than not recognition threshold but are not highly certain are initially and subsequently measured based on the largest amount of benefit that is greater than 50% likely of being realized upon settlement with the taxing authority. Only information that is available at the reporting date is considered in the Company’s recognition and measurement analysis, and events or changes in facts and circumstances are accounted for in the period in which the event or change in circumstance occurs. The Company records penalties and interest related to unrecognized tax benefits in Income taxes in the Company’s Consolidated Statements of Income. New Accounting Pronouncements Adoption of New Accounting Standards Income Tax Accounting Implications of the Tax Cuts and Jobs Act On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted into law and the new legislation contains several key tax provisions that impact the Company, including a reduction of the corporate income tax rate to 21% effective for tax years beginning after December 31, 2017 and the Transition Tax, among others. The Company is required to recognize the effect of the tax law changes in the period of enactment, including the determination of the Transition Tax and re-measuring our U.S. deferred tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which allows registrants to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Reform Act was passed late in the fourth quarter of 2017 and ongoing guidance and accounting interpretation is expected over the next 12 months, we consider the accounting for certain items to be provisional due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. Refer to Note 10 “Income Taxes” for additional information and a detailed description of the items for which the accounting is provisional. Share-based Compensation In March 2016, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance on several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement and treated as discrete items in the reporting period. Further, excess tax benefits are required to be classified along with other income tax cash flows as an operating activity. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. An entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. The Company adopted this guidance on January 1, 2017, with the following impacts: • An increase to Deferred tax assets on the Consolidated Statement of Financial Position of $49 million through a cumulative-effect adjustment to Retained earnings for excess tax benefits not previously recognized, and • The recognition of $54 million , or $0.21 per share, income tax benefit from continuing operations related to excess tax benefits in the Consolidated Statement of Income for the year ended December 31, 2017 . Adoption of the guidance was applied prospectively on the Consolidated Statement of Cash Flows and prior period comparable information was not restated. Other elements of the guidance did not have a material impact on the Company’s Consolidated Financial Statements. Accounting Standards Issued but Not Yet Adopted Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued new accounting guidance on targeted improvements to accounting for hedging activities. The new guidance amends its hedge accounting model to enable entities to better portray their risk management activities in the financial statements. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and requires the effect of a hedging instrument to be presented in the same income statement line as the hedged item. An entity will apply the new guidance on a modified retrospective basis with a cumulative effect adjustment to accumulated other comprehensive income with a corresponding adjustment to retained earnings as of the beginning of the period of adoption. Changes to income statement presentation and financial statement disclosures will be applied prospectively. The new guidance is effective for Aon in the first quarter of 2019 and early adoption is permitted. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements and the period in which it plans to adopt. Presentation of Net Periodic Pension and Postretirement Benefit Costs In March 2017, the FASB issued new accounting guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost and net periodic postretirement benefit cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Additionally, only the service cost component is eligible for capitalization, when applicable. An entity will apply the new guidance retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the Consolidated Statement of Income and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension costs and net periodic postretirement benefit cost in assets. The new guidance allows a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The Company does not expect to apply the practical expedient upon adoption of the guidance. The new guidance is effective for Aon in the first quarter of 2018. The adoption of this guidance will have no impact on the net income of the Company. Upon adoption of the guidance, the Company expects the presentation of results to reflect a change in operating income offset by an equal and offsetting change in other income (expense) for each period, as follows: Years ended December 31 2017 2016 As Reported Adjustments (1) As Adjusted As Reported Adjustments (1) As Adjusted Operating income (2) 979 86 1,065 1,638 173 1,811 Other income (expense) (39 ) (86 ) (125 ) 36 (173 ) (137 ) (1) The years ended December 31, 2017 and 2016 , include non-cash settlement expenses of $128 million and $220 million , respectively, related to certain pension plans. Refer to Note 12 “Employee Benefits” for further information. (2) Reclassification from operating income is recorded in Compensation and benefits. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued new accounting guidance on simplifying the test for goodwill impairment. Currently the standard requires an entity to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. The new guidance removes Step 2. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. An entity will apply the new guidance on a prospective basis. The new guidance is effective for Aon in the first quarter of 2020 and early adoption is permitted for annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact and period of adoption that the standard will have on the Consolidated Financial Statements. Income Tax Consequences of Intercompany Transactions In October 2016, the FASB issued new accounting guidance on the income tax consequences of intra-entity asset transfers other than inventory. The guidance will require that the seller and buyer recognize the consolidated current and deferred income tax consequences of a transaction in the period the transaction occurs rather than deferring to a future period and recognizing those consequences when the asset has been sold to an outside party or otherwise recovered through use (i.e. depreciated, amortized, or impaired). An entity will apply the new guidance on a modified retrospective basis with a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The new guidance is effective for Aon in the first quarter of 2018. Upon the adoption of this guidance on January 1, 2018, the Company expects to recognize adjustments to Deferred tax assets, Deferred tax liabilities, and Other non-current assets on the Consolidated Statement of Financial Position through a cumulative adjustment to Retained earnings of approximately $ 15 million . Statement of Cash Flows In August 2016, the FASB issued new accounting guidance on the classification of certain cash receipts and cash payments. Under the new guidance, an entity will no longer have discretion to choose the classification for a number of transactions, including contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. The new standard will be effective for the Company in the first quarter of 2018, with early application permitted. An entity will apply the new guidance through retrospective adjustment to all periods presented. The retrospective approach includes a practical expedient that entities may apply should retrospective application be impracticable; in this case, the amendments for these issues may be applied prospectively as of the earliest date practicable. The guidance will not have a material impact on the Company’s Consolidated Statements of Cash Flows. Credit Losses In June 2016, the FASB issued new accounting guidance on the measurement of credit losses on financial instruments. The new guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. An entity will apply the new guidance through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The guidance is effective for Aon in the first quarter of 2020 and early adoption is permitted beginning in the first quarter of 2019. Aon is currently evaluating the impact that the standard will have on its Consolidated Financial Statements, as well as the method of transition and period of adoption. Leases In February 2016, the FASB issued new accounting guidance on leases, which requires lessees to recognize assets and liabilities for most leases. Under the new guidance, a lessee should recognize in the Consolidated Statement of Financial Position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current U.S. GAAP standards. The new standard will be effective for the Company in the first quarter of 2019, with early application permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The Company is currently evaluating the period of adoption. A preliminary assessment to determine the impacts of the new accounting standard has been performed and it is expected to have a significant impact on the Company’s Consolidated Statements of Financial Position and related disclosures. The Company is also currently implementing accounting and operational processes which will be impacted by the new standard. Financial Assets and Liabilities In January 2016, the FASB issued new accounting guidance on recognition and measurement of financial assets and financial liabilities. The amendments in the new guidance make targeted improvements, which include the requirement to measure equity investments with readily determinable fair values at fair value through net income, simplification of the impairment assessment for equity investments without readily determinable fair values, adjustments to existing and additional disclosure requirements, and additional tax considerations. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values, including disclosure requirements, should be applied prospectively to equity investments that exist as of the date of adoption of the guidance. The guidance is effective for the Company in the first quarter of 2018 and early adoption is permitted. The adoption of this guidance on January 1, 2018 is not expected to have a significant impact on the Company’s Consolidated Financial Statements. Revenue Recognition In May 2014, the FASB issued a new accounting standard on revenue from contracts with customers, which, when effective, will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principal of the standard 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 standard also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments, changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The standard is effective for Aon in the first quarter of 2018. Two methods of transition are permitted upon adoption: |
Other Financial Data
Other Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Other Financial Data [Abstract] | |
Other Financial Data | Other Financial Data Consolidated Statements of Income Information Other Income (Expense) Other income (expense) consists of the following (in millions): Years ended December 31 2017 2016 2015 Foreign currency remeasurement gain (loss) $ (37 ) $ (2 ) $ 30 Net gain (loss) on disposal of businesses (16 ) 39 82 Equity earnings 12 13 13 Income (loss) on financial instruments 2 (14 ) (24 ) Other — — (1 ) Total $ (39 ) $ 36 $ 100 Consolidated Statements of Financial Position Information Allowance for Doubtful Accounts An analysis of the allowance for doubtful accounts is as follows (in millions): 2017 2016 2015 Balance at January 1 $ 56 $ 58 $ 72 Provision charged to Other general expenses 18 10 12 Accounts written off, net of recoveries (18 ) (15 ) (32 ) Foreign currency translation 3 3 6 Balance at December 31 $ 59 $ 56 $ 58 Other Current Assets The components of Other current assets are as follows (in millions): As of December 31 2017 2016 Taxes receivable $ 114 $ 100 Prepaid expenses 126 102 Receivables from the Divested Business (1) 28 — Other 21 45 Total $ 289 $ 247 (1) Refer to Note 4 “Discontinued Operations” for additional information. Fixed Assets, net The components of Fixed assets, net are as follows (in millions): As of December 31 2017 2016 Software $ 680 $ 677 Leasehold improvements 349 369 Computer equipment 295 258 Furniture, fixtures and equipment 240 252 Construction in progress 79 75 Other 90 115 Fixed assets, gross 1,733 1,746 Less: Accumulated depreciation 1,169 1,196 Fixed assets, net $ 564 $ 550 Depreciation expense, which includes software amortization, was $187 million , $162 million , and $164 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Other Non-Current Assets The components of Other non-current assets are as follows (in millions): As of December 31 2017 2016 Investments $ 57 $ 119 Taxes receivable 84 82 Other 166 159 Total $ 307 $ 360 Other Current Liabilities The components of Other current liabilities are as follows (in millions): As of December 31 2017 2016 Deferred revenue $ 311 $ 199 Taxes payable (1) 139 77 Other 420 380 Total $ 870 $ 656 (1) Includes a provisional estimate of $42 million for the current portion of the Transition Tax. Refer to Note 10 “Income Taxes” for further information. Other Non-Current Liabilities The components of Other non-current liabilities are as follows (in millions): 2017 2016 Taxes payable (1) $ 529 $ 288 Leases 153 136 Compensation and benefits 67 56 Deferred revenue 49 49 Other 304 190 Total $ 1,102 $ 719 (1) Includes a provisional estimate of $222 million for the Transition Tax. Refer to Note 10 “Income Taxes” for further information. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On February 9, 2017 , the Company entered into the Purchase Agreement with Tempo Acquisition, LLC to sell its benefits administration and business process outsourcing business to the Buyer. On May 1, 2017, the Buyer purchased all of the outstanding equity interests of the Divested Business, plus certain related assets and liabilities, for a purchase price of $4.3 billion in cash paid at closing, subject to customary adjustments set forth in the Purchase Agreement, and deferred consideration of up to $500 million . Cash proceeds after customary adjustments and before taxes due were $4.2 billion . Aon and the Buyer entered into certain transaction related agreements at the closing, including two commercial agreements, a transition services agreement, certain intellectual property license agreements, sub-leases, and other customary agreements. Aon expects to continue to be a significant client of the Divested Business and the Divested Business has agreed to use Aon for its broking and other services for a specified period of time. In the year ended December 31, 2017 , the Company recorded an estimated gain on sale, net of taxes, of $779 million and a non-cash impairment charge to its tradenames associated with the Divested Business of $380 million as these assets were not sold to the Buyer. The impairment charge is included in Amortization and impairment of intangible assets on the Consolidated Statement of Income for year ended December 31, 2017 . The Company has classified the results of the Divested Business as discontinued operations in the Company’s Consolidated Statements of Income for all periods presented. Additionally, the assets and liabilities of the Divested Business were retrospectively classified as discontinued operations in the Company’s Consolidated Statements of Financial Position upon triggering held for sale criteria in February 2017. These assets and liabilities were sold on May 1, 2017. The financial results of the Divested Business for the years ended December 31, 2017 , 2016 , and 2015 are presented as Income from discontinued operations, net of tax, on the Company’s Consolidated Statements of Income. The following table presents the financial results of the Divested Business (in millions): Years ended December 31 2017 2016 2015 Revenue Total revenue $ 698 $ 2,218 $ 2,202 Expenses Total operating expenses 656 1,950 1,941 Operating Income from discontinued operations 42 268 261 Other income 10 — — Income from discontinued operations before income taxes 52 268 261 Income taxes 3 91 92 Income from discontinued operations excluding gain, net of tax 49 177 169 Gain on sale of discontinued operations, net of tax 779 — — Income from discontinued operations, net of tax $ 828 $ 177 $ 169 Upon triggering held for sale criteria in February 2017, Aon ceased depreciating and amortizing all long-lived assets included in discontinued operations. Total operating expenses for the years ended December 31, 2017 , 2016 , and 2015 include, respectively, $8 million , $70 million , and $65 million of depreciation of fixed assets and $11 million , $120 million , and $141 million of intangible asset amortization. The following table presents the aggregate carrying amounts of the classes of assets and liabilities presented as discontinued operations within the Company’s Consolidated Statements of Financial Position (in millions): December 31, 2017 (1) December 31, ASSETS Cash and cash equivalents $ — $ 5 Receivables, net — 483 Fiduciary assets — 526 Goodwill — 1,337 Intangible assets, net — 333 Fixed assets, net — 215 Other assets — 295 TOTAL ASSETS $ — $ 3,194 LIABILITIES Accounts payable and accrued liabilities $ — $ 197 Fiduciary liabilities — 526 Other liabilities — 356 TOTAL LIABILITIES $ — $ 1,079 (1) All assets and liabilities associated with the Divested Business were sold on May 1, 2017. The Company’s Consolidated Statements of Cash Flows present the operating, investing, and financing cash flows of the Divested Business as discontinued operations. Aon uses a centralized approach to cash management and financing of its operations. Prior to the closing of the transaction, portions of the Divested Business’s cash were transferred to Aon daily, and Aon would fund the Divested Business as needed. Cash and cash equivalents of discontinued operations at December 31, 2016 was $5 million . Total proceeds received for the sale of the divested business and taxes paid as a result of the sale are recognized on the Consolidated Statements of Cash Flows in Cash provided by investing activities - continuing operations and Cash provided by operating activities - continuing operations, respectively. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In 2017, Aon initiated a global restructuring plan (the “Restructuring Plan”) in connection with the sale of the Divested Business. The Restructuring Plan is intended to streamline operations across the organization and deliver greater efficiency, insight, and connectivity. The Company expects these restructuring activities and related expenses to affect continuing operations through 2019, including an estimated 4,200 to 4,800 role eliminations. The Restructuring Plan is expected to result in cumulative costs of approximately $1,025 million through the end of the plan, consisting of approximately $450 million in employee termination costs, $130 million in technology rationalization costs, $85 million in lease consolidation costs, $50 million in non-cash asset impairments, and $310 million in other costs, including certain separation costs associated with the sale of the Divested Business. From the inception of the Restructuring Plan through December 31, 2017 , the Company has eliminated 2,630 positions and incurred total expenses of $497 million for restructuring and related separation costs. These charges are included in Compensation and benefits, Information technology, Premises, Depreciation of fixed assets, and Other general expenses in the accompanying Consolidated Statements of Income. The following table summarizes restructuring and separation costs by type that have been incurred through December 31, 2017 and are estimated to be incurred through the end of the Restructuring Plan (in millions). Estimated costs may be revised in future periods as these assumptions are updated: Year Ended December 31, 2017 Estimated Remaining Costs Estimated Total Cost (1) Workforce reduction $ 299 $ 151 $ 450 Technology rationalization (2) 33 97 130 Lease consolidation (2) 8 77 85 Asset impairments 26 24 50 Other costs associated with restructuring and separation (2) (3) 131 179 310 Total restructuring and related expenses $ 497 $ 528 $ 1,025 (1) Actual costs, when incurred, may vary due to changes in the assumptions built into the Restructuring Plan. Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives. (2) Contract termination costs included within Technology rationalization for the year ended December 31, 2017 were $1 million . Contract termination costs included within Lease consolidations for the year ended December 31, 2017 were $8 million . Contract termination costs included within Other costs associated with restructuring and separation were $3 million for the year ended December 31, 2017 . Total estimated contract termination costs to be incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs associated with restructuring and separation, respectively, are $10 million , $80 million , and $10 million . (3) Other costs associated with the Restructuring Plan include primarily those to separate the Divested Business, as well as moving costs and consulting and legal fees. These costs are generally recognized when incurred. The changes in the Company’s liabilities for the Restructuring Plan as of December 31, 2017 are as follows (in millions): Restructuring Plan Balance at December 31, 2016 $ — Expensed 452 Cash payments (280 ) Foreign currency translation and other 14 Balance at December 31, 2017 $ 186 |
Acquisitions and Dispositions o
Acquisitions and Dispositions of Businesses | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations and Discontinued Operations and Disposal Groups [Abstract] | |
Acquisitions and Dispositions of Businesses | Acquisitions and Dispositions of Businesses Acquisitions The Company completed seventeen acquisitions during the year ended December 31, 2017 and eight acquisitions during the year ended December 31, 2016 . The following table includes the preliminary fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisitions (in millions): For the year ended December 31, 2017 Cash $ 1,136 Deferred and contingent consideration 63 Aggregate consideration transferred $ 1,199 Assets acquired: Cash and cash equivalents $ 108 Receivables, net 47 Goodwill 619 Intangible assets, net 567 Fixed assets, net 18 Other assets 200 Total assets acquired 1,559 Liabilities assumed: Current liabilities 230 Other liabilities 130 Total liabilities assumed 360 Net assets acquired $ 1,199 Intangible assets are primarily customer-related and contract-based assets. Those intangible assets acquired as part of a business acquisition in 2017 had a weighted average useful economic life of 16 years . Acquisition related costs incurred and recognized within Other general expenses for the year ended December 31, 2017 were $ 13 million . Total revenue for these acquisitions included in the Company’s Consolidated Statement of Income for the year ended December 31, 2017 was approximately $ 50 million . The results of operations of these acquisitions are included in the Consolidated Financial Statements as of the respective acquisition dates. 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. 2017 Acquisitions On December 29, 2017, the Company completed the transaction to acquire the Townsend Group, a U.S.-based provider of global investment management and advisory services primarily focused on real estate. On December 29, 2017, the Company completed the transaction to acquire Baltolink UADBB, a regional broker based in Lithuania. On December 19, 2017, the Company completed the transaction to acquire a client register of Grant Liddell Financial Advisor Services Pty Ltd in Australia. On December 1, 2017, the Company completed the transaction to acquire Henderson Insurance Brokers Limited, an independent insurance broking firm based in the United Kingdom. On November 30, 2017, the Company completed the transaction to acquire Unidelta AG, an insurance broker located in Switzerland. On October 31, 2017, the Company completed the transaction to acquire Unirobe Meeùs Groep, an insurance broker based in the Netherlands. On October 31, 2017, the Company completed the transaction to acquire Lenzi Paolo Broker di Assicurazioni S.r.l., an insurance broker based in Italy. On October 26, 2017, the Company completed the transaction to acquire Nauman Insurance Brokers Limited, an insurance broker based in New Zealand. On October 2, 2017, the Company completed the transaction to acquire Portus Consulting, an independent employee benefits firm based in the United Kingdom. On August 31, 2017, the Company completed the transaction to acquire Mark Kelly Insurance and Financial Services PTY LTD, an Australia-based broker servicing the insurance needs of commercial clients in and around the Townsville regional center. On August 28, 2017, the Company completed the transaction to acquire a certain portfolio in the Charlotte office of The Hays Group, Inc. d/b/a Hays Companies. On July 27, 2017, the Company completed the transaction to acquire Grupo Innovac Sociedad de Correduría de Seguros, S.A, an insurance broker based in Valencia, Spain. On July 3, 2017, the Company completed the transaction to acquire PWZ AG, an independent insurance broker based in Zurich, Switzerland. On May 31, 2017, the Company completed the transaction to acquire SchneiderGolling IFFOXX Assekuranzmakler AG and SchneiderGolling Industrie Assekuranzmaklergesellschaft mbH from SchneiderGolling Gruppe, a property and casualty broker based in Southern Germany. On May 2, 2017, the Company completed the transaction to acquire cut-e Assessment Global Holdings Limited, a high-volume online psychometric assessments provider based in Ireland. On March 3, 2017, the Company completed the transaction to acquire Finaccord Limited, a market research, publishing and consulting company based in the United Kingdom. On January 19, 2017, the Company completed the transaction to acquire VERO Management AG, an insurance broker and risk advisor based in Austria. 2016 Acquisitions On December 26, 2016, the Company completed the transaction to acquire Admix, a leading health and benefits brokerage and solutions firm based in Brazil. On November 11, 2016 the Company completed the transaction to acquire CoCubes, a leading hiring assessment company based in India. On October 31, 2016, the Company completed the transaction to acquire Stroz, Friedberg, Inc., a leading global cyber risk management firm based in New York City, with offices across the U.S. and in London, Zurich, Dubai and Hong Kong. On August 19, 2016, the Company completed the transaction to acquire Cammack Health LLC, a leading health and benefits consulting firm that serves large health care organizations in the Eastern region of the U.S., including health plans, health systems and employers. On June 1, 2016, the Company completed the transaction to acquire Univers Workplace Solutions, a leading elective benefit enrollment and communication services firm based in New Jersey. On April 11, 2016, the Company completed the transaction to acquire Nexus Insurance Brokers Limited and Bayfair Insurance Centre Limited, insurance brokerage firms located in New Zealand. On February 1, 2016, the Company completed the transaction to acquire Modern Survey, an employee survey and talent analytics solutions provider based in Minneapolis. On January 1, 2016, the Company completed the transaction to acquire Globe Events Management, an insurance, retirement, and investment consulting business based in Australia. Dispositions In addition to the Divested Business described in Note 4 “Discontinued Operations”, the Company completed nine dispositions during the year ended December 31, 2017 . The Company completed five dispositions during the year ended December 31, 2016 and seven dispositions during the year ended December 31, 2015 . Total pretax losses, net of gains, for the year ended December 31, 2017 was $16 million . Total pretax gains, net of losses, for the years ended December 31, 2016 , and 2015 , were $39 million , and $82 million , respectively. Gains and losses recognized as a result of a disposition are included in Other income (expense) in the Consolidated Statements of Income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
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 for the years ended December 31, 2017 and 2016 , respectively, are as follows (in millions): Balance as of January 1, 2016 $ 7,068 Goodwill related to current year acquisitions 642 Goodwill related to disposals (34 ) Goodwill related to prior year acquisitions 4 Foreign currency translation (270 ) Balance as of December 31, 2016 $ 7,410 Goodwill related to current year acquisitions 619 Goodwill related to disposals (5 ) Goodwill related to prior year acquisitions (13 ) Foreign currency translation 347 Balance as of December 31, 2017 $ 8,358 Other intangible assets by asset class are as follows (in millions): As of December 31 2017 2016 Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Customer related and contract based 2,550 1,415 1,135 2,023 1,198 825 Tradenames (1) 1,047 533 514 1,027 7 1,020 Technology and other (1) 416 332 84 347 302 45 Total $ 4,013 $ 2,280 $ 1,733 $ 3,397 $ 1,507 $ 1,890 (1) Prior to May 1, 2017, finite lived tradenames were classified within Technology and other. As of December 31, 2016, $29 million of gross carrying amount and $7 million of accumulated amortization related to finite-lived tradenames were reclassified from Technology and other to Tradenames. In the second quarter of 2017, and in connection with the completion of the sale of the Divested Business, the Company recognized a non-cash impairment charge to the associated tradenames of $380 million . The fair value of the tradenames was determined using the Relief from Royalty Method. This impairment was included in Amortization and impairment of intangible assets on the Consolidated Statement of Income. Refer to Note 4 “Discontinued Operations” for further information. Additionally, effective May 1, 2017, and consistent with operating as one segment, the Company implemented a three -year strategy to transition to a unified Aon brand. As a result, Aon commenced amortization of all indefinite-lived tradenames and prospectively accelerated amortization of its finite lived tradenames over the three -year period. The change in estimated useful life resulted in additional amortization expense, net of tax, to continuing operations of $116 million , or $0.44 per share, for the year ended December 31, 2017 . Amortization expense and impairment charges from finite lived intangible assets were $704 million , $157 million , and $173 million for the years ended December 31, 2017 , 2016 , and 2015 respectively. The estimated future amortization for finite-lived intangible assets as of December 31, 2017 is as follows (in millions): 2018 $ 410 2019 420 2020 253 2021 140 2022 98 Thereafter 412 Total $ 1,733 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following is a summary of outstanding debt (in millions): As of December 31 2017 2016 3.875% Senior Notes due December 2025 $ 745 $ 744 5.00% Senior Notes due September 2020 598 598 3.50% Senior Notes due June 2024 595 594 4.75% Senior Notes due May 2045 592 592 2.875% Senior Notes due May 2026 (EUR 500M) 587 516 4.60% Senior Notes due June 2044 544 543 8.205% Junior Subordinated Notes due January 2027 521 521 2.80% Senior Notes due March 2021 398 397 4.00% Senior Notes due November 2023 348 347 6.25% Senior Notes due September 2040 296 295 4.76% Senior Notes due March 2018 (CAD 375M) 296 277 4.45% Senior Notes due May 2043 246 246 4.25% Senior Notes due December 2042 197 197 Commercial paper — 329 Other 3 9 Total debt 5,966 6,205 Less: Short-term and current portion of long-term debt 299 336 Total long-term debt $ 5,667 $ 5,869 Notes During the first quarter of 2017, the CAD 375 million ( $296 million at December 31, 2017 exchange rates) 4.76% Senior Notes due March 2018 were classified as Short-term debt and current portion of long-term debt in the Consolidated Statements of Financial Position as the date of maturity is less than one year. On May 27, 2016, $500 million of 3.125% Senior Notes due May 2016 issued by Aon Corporation matured and were repaid in full. On March 1, 2016, Aon plc issued $750 million of 3.875% Senior Notes due December 2025. The Company used the proceeds of the issuance for general corporate purposes. Each of the notes issued by Aon plc and described above is fully and unconditionally guaranteed by Aon Corporation. The 4.76% Senior Notes due March 2018 identified in the table above were issued by a Canadian subsidiary of Aon Corporation and are fully and unconditionally guaranteed by Aon plc and Aon Corporation. Refer to Note 18 “Guarantee of Registered Securities” for additional information regarding guarantees of outstanding debt securities. Each of the notes described above and identified in the table above contains customary representations, warranties, and covenants, and the Company was in compliance with all such covenants as of December 31, 2017 . Repayments of total debt are as follows (in millions): 2018 $ 299 2019 — 2020 600 2021 400 2022 — Thereafter 4,770 Total Repayments 6,069 Unamortized discount, premium, and debt issuance cost (103 ) Total Debt $ 5,966 Revolving Credit Facilities As of December 31, 2017 , Aon plc had two primary committed credit facility outstanding: its $900 million multi-currency U.S. credit facility expiring in February 2021 (the “2021 Facility”) and its $400 million multi-currency U.S. credit facility expiring in October 2022 (the “2022 Facility”). The 2022 Facility was entered into on October 19, 2017. Each of these facilities includes customary representations, warranties, and covenants, including financial covenants that require Aon plc to maintain specified ratios of adjusted consolidated earnings before interest, taxes, depreciation, and amortization (“EBITDA”) to consolidated interest expense and consolidated debt to adjusted consolidated EBITDA, in each case, tested quarterly. At December 31, 2017 , Aon plc did not have borrowings under either the 2021 Facility or the 2022 Facility, and was in compliance with all covenants contained therein during the twelve months ended December 31, 2017 . Commercial Paper Aon Corporation, a wholly-owned subsidiary of Aon plc, has established a U.S. commercial paper program and a European multi-currency commercial paper program (collectively “the CP Programs”). Commercial paper may be issued in an aggregate principal amount of up to $1.3 billion under the CP Programs, allocated between the two programs as determined by management, not to exceed the amount of committed credit, which was $1.3 billion as of December 31, 2017 . 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. Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Company’s Consolidated Statements of Financial Position, is as follows (in millions): As of December 31, 2017 December 31, 2016 Commercial paper outstanding $ — $ 329 The weighted average commercial paper outstanding and its related interest rates are as follows: Years ended December 31 2017 2016 Weighted average commercial paper outstanding $ 170 $ 265 Weighted average interest rate of commercial paper outstanding 0.18 % 0.22 % |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Leases, Operating [Abstract] | |
Lease Commitments | Lease Commitments The Company leases office facilities, equipment, and automobiles under non-cancelable operating leases. These leases expire at various dates and may contain renewal and expansion options. In addition to base rental costs, occupancy lease agreements generally provide for rent escalations resulting from increased assessments for real estate taxes and other charges. The Company’s lease obligations are primarily for the use of office space. Rental expenses (including amounts applicable to taxes, insurance, and maintenance) for operating leases are as follows (in millions): Years Ended December 31 2017 2016 2015 Rental expense $ 377 $ 358 $ 413 Sub lease rental income (57 ) (52 ) (73 ) Net rental expense $ 320 $ 306 $ 340 At December 31, 2017 , future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows (in millions): Year Ended December 31, 2017 Gross rental commitments Rentals from subleases Net rental commitments 2018 $ 318 $ (41 ) $ 277 2019 291 (42 ) 249 2020 249 (35 ) 214 2021 226 (34 ) 192 2022 205 (34 ) 171 Thereafter 631 (18 ) 613 Total minimum payments required $ 1,920 $ (204 ) $ 1,716 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the Tax Reform Act was enacted. The Tax Reform Act includes a number of changes to existing U.S. tax laws that impact the Company, most notably a reduction of the U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017 and the Transition Tax. On December 22, 2017, the SEC staff issued SAB 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act in the reporting period in which the Tax Reform Act was enacted. SAB 118 allows registrants to record provisional amounts during a one year “measurement period”. However, the measurement period is deemed to have ended earlier when the registrant has obtained, prepared, and analyzed the information necessary to finalize its accounting. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared, or analyzed. SAB 118 summarizes three categories to be applied to each component of tax reform at each reporting period to account for and qualitatively disclose: (1) the effects of the change in tax law for which accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the tax law where accounting is not complete, but that a reasonable estimate has been determined; and (3) a reasonable estimate cannot yet be made and therefore taxes are reflected in accordance with law prior to the enactment of the Tax Reform Act. The Company has recognized provisional estimates in its consolidated financial statements for the year ended December 31, 2017 for the items described below. The ultimate impact may differ from these provisional amounts, possibly by a material amount, due to additional analysis of the law, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and/or actions the Company may take as a result of the Tax Reform Act. • The Company recorded a provisional estimate of $264 million income tax expense for the Transition Tax. The Company expects to pay additional U.S. federal cash taxes of approximately $264 million on the deemed mandatory repatriation, payable over eight years. The Transition Tax is based on estimates of post-1986 earnings and profits and related foreign tax credits of its U.S.-owned foreign subsidiaries as of November 2, 2017 and December 31, 2017, whichever amount is higher, and may change materially as the Company refines those estimates and as the Company further analyzes present and future regulations and other guidance interpreting the Transition Tax provision. It could also change depending on certain events that could occur after December 31, 2017 • The Company recorded a provisional estimate of $86 million income tax expense for the re-measurement of deferred tax assets and liabilities as a result of the reduction in the U.S. corporate income tax rate from 35% to 21%. The Company continues to refine its calculation as it gains a more thorough understanding of the impact of the Tax Reform Act, particularly as it applies to deductions related to executive compensation and purchased assets. • The Company has changed its assertion and is no longer permanently reinvested on the earnings subject to the Transition Tax. The Company has recorded a provisional estimate of local country income taxes, state income taxes, and withholding taxes in the amount of $39 million as of December 31, 2017. The tax estimate is provisional due to the fact that additional analysis of the Company’s complex legal entity structure is required as well as a more detailed analysis of the local country tax laws where the pools of undistributed earnings exist. The Company was not able to make a reasonable estimate of the allocation between continuing and discontinued operations of the tax benefit from foreign tax credits and related valuation allowance release. As a result, the Company continued to account for this item based on our existing accounting under GAAP and the provisions of the tax laws that were in effect prior to enactment of the Tax Reform Act. Other significant provisions of the Tax Reform Act that are not yet effective but may impact income taxes in future years include: an exemption from U.S. tax on dividends of future foreign earnings, additional limitations on deductibility of interest payable to related and unrelated lenders, further limitations on the deductibility of executive compensation, an alternative Base Erosion and Anti-Abuse Tax that limits deductions for certain amounts payable to foreign affiliates, and an additional U.S. tax on certain future foreign subsidiary earnings, whether or not distributed, (i.e., global intangible low-taxed income or “GILTI”). The Company has elected to account for GILTI tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements for the year ended December 31, 2017. Income before income tax from continuing operations and the provision for income tax from continuing operations consist of the following (in millions): Years ended December 31 2017 2016 2015 Income before income taxes: U.K. $ (420 ) $ (201 ) $ 144 U.S. (765 ) (329 ) (283 ) Other 1,870 1,931 1,567 Total $ 685 $ 1,401 $ 1,428 Income tax expense (benefit): Current: U.K. $ 1 $ (54 ) $ 42 U.S. federal 48 88 22 U.S. state and local 18 7 32 Other 201 207 245 Total current tax expense $ 268 $ 248 $ 341 Deferred tax expense (benefit): U.K. $ (5 ) $ 59 $ (39 ) U.S. federal 12 (110 ) (94 ) U.S. state and local (35 ) (9 ) (4 ) Other 10 (40 ) (29 ) Total deferred tax benefit $ (18 ) $ (100 ) $ (166 ) Total income tax expense $ 250 $ 148 $ 175 Income before income taxes shown above is based on the location of the business unit to which such earnings are attributable for tax purposes. In addition, because the earnings shown above may, in some cases, be subject to taxation in more than one country, the income tax provision shown above as U.K., U.S. or Other may not correspond to the geographic attribution of the earnings. The Company performs a reconciliation of the income tax provisions based on its domicile and statutory rate at each reporting period. The 2017 , 2016 , and 2015 reconciliations are based on the U.K. statutory corporate tax rate of 19.3% , 20.0% , and 20.3% , respectively. The reconciliation to the provisions from continuing operations reflected in the Consolidated Financial Statements is as follows: Years ended December 31 2017 2016 2015 Statutory tax rate 19.3% 20.0% 20.3% U.S. state income taxes, net of U.S. federal benefit (1.5) 0.4 0.1 Taxes on international operations (1) (30.3) (12.2) (8.8) Nondeductible expenses 3.4 1.4 2.5 Adjustments to prior year tax requirements 2.0 (1.2) (1.5) Adjustments to valuation allowances (1.8) (2.2) (1.4) Change in uncertain tax positions 1.6 3.2 1.4 Excess tax benefits related to shared based compensation (2) (8.0) — — U.S. Tax Reform impact (3) 51.2 — — Other — net 0.6 1.2 (0.3) Effective tax rate 36.5% 10.6% 12.3% (1) The Company determines the adjustment for taxes on international operations based on the difference between the statutory tax rate applicable to earnings in each foreign jurisdiction and the enacted rate of 19.3% , 20.0% and 20.3% at December 31, 2017 , 2016 , and 2015 , respectively. The benefit to the Company’s effective income tax rate from taxes on international operations relates to benefits from lower-taxed global operations, primarily due to the use of global funding structures. Restructuring charges and the impairment and amortization of tradenames, primarily in the U.S., were the significant drivers of the change from 2016 to 2017. (2) With the adoption of ASU 2016-09 in 2017, excess tax benefits and deficiencies from share-based payment transactions are recognized as income tax expense or benefit in the Company’s Consolidated Statements of Income. Refer to Note 2 “Summary of Significant Accounting Principles and Practices” for additional details. (3) Due to the Tax Reform Act, provisional estimates were accrued as of December 31, 2017 for the Transition Tax and the re-measurement of U.S. deferred tax assets and liabilities from 35% to 21%. For the tax impact of discontinued operations, see Note 4. The components of the Company’s deferred tax assets and liabilities are as follows (in millions): As of December 31 2017 2016 Deferred tax assets: Employee benefit plans $ 424 $ 661 Net operating/capital loss and tax credit carryforwards 362 398 Other accrued expenses 65 102 Investment basis differences 35 48 Deferred revenue 20 57 Tradename Liability 12 — Lease and Service Guarantees 6 — Brokerage fee arrangements 4 66 Accrued Interest 1 166 Other 48 60 Total 977 1,558 Valuation allowance on deferred tax assets (136 ) (130 ) Total $ 841 $ 1,428 Deferred tax liabilities: Intangibles and property, plant and equipment $ (436 ) $ (978 ) Unremitted earnings (39 ) (29 ) Deferred costs (32 ) (20 ) Unrealized foreign exchange gains (22 ) (26 ) Other accrued expenses (12 ) (101 ) Other (38 ) (50 ) Total $ (579 ) $ (1,204 ) Net deferred tax asset $ 262 $ 224 Deferred income taxes (assets and liabilities have been netted by jurisdiction) have been classified in the Consolidated Statements of Financial Position as follows (in millions): As of December 31 2017 2016 Deferred tax assets — non-current $ 389 $ 325 Deferred tax liabilities — non-current (127 ) (101 ) Net deferred tax asset $ 262 $ 224 Valuation allowances have been established primarily with regard to the tax benefits of certain net operating loss and capital loss carryforwards. Valuation allowances increased by $6 million as of December 31, 2017 , when compared to December 31, 2016 . The change is primarily attributable to a capital loss generated by the liquidation of an entity which required a valuation allowance offset by the release of certain valuation allowances. As a result of the deemed mandatory repatriation provisions in the Tax Reform Act, the Company included an estimated $3.2 billion of undistributed earnings from foreign subsidiaries in income subject to U.S. tax at reduced tax rates. The Company intends to limit distributions to earnings previously taxed in the U.S. or to earnings that would qualify for the 100% dividends received deduction provided for in the Tax Reform Act. As of December 31, 2017, the Company has accrued a provisional estimate of $39 million for local country income and withholding taxes on those undistributed earnings that are not permanently reinvested. The Company had the following operating and capital loss carryforwards (in millions): As of December 31 2017 2016 U.K. Operating loss carryforwards $ 675 $ 325 Capital loss carryforwards 415 294 U.S. Federal operating loss carryforwards $ 36 $ 193 State operating loss carryforwards 412 474 Other Non-US Operating loss carryforwards $ 392 $ 350 Capital loss carryforwards 232 218 The U.K. operating losses and capital losses have an indefinite carryforward. The federal operating loss carryforwards as of December 31, 2017 expire at various dates from 2020 to 2036 and the state operating losses as of December 31, 2017 expire at various dates from 2018 to 2036. Operating and capital losses in other non-US jurisdictions have various carryforward periods and will begin to expire in 2019. During 2012, the Company was granted a tax holiday for the period from October 1, 2012 through September 30, 2022, with respect to withholding taxes and certain income derived from services in Singapore. This tax holiday and reduced withholding tax rate may be extended when certain conditions are met or may be terminated early if certain conditions are not met. The benefit realized was approximately $45 million , $46 million , and $23 million during the years ended December 31, 2017 , 2016 , and 2015 , respectively. The impact of this tax holiday on diluted earnings per share was $0.17 , $0.17 , and $0.08 during the years ended December 31, 2017, 2016, and 2015, respectively. Uncertain Tax Positions The following is a reconciliation of the Company’s beginning and ending amount of uncertain tax positions (in millions): 2017 2016 Balance at January 1 $ 278 $ 238 Additions based on tax positions related to the current year 25 36 Additions for tax positions of prior years 12 20 Reductions for tax positions of prior years (26 ) (12 ) Settlements (6 ) — Business combinations — 2 Lapse of statute of limitations (7 ) (5 ) Foreign currency translation 4 (1 ) Balance at December 31 $ 280 $ 278 The Company’s liability for uncertain tax positions as of December 31, 2017 , 2016 , and 2015 , includes $219 million , $240 million , and $200 million , respectively, related to amounts that would impact the effective tax rate if recognized. It is possible that the amount of unrecognized tax benefits may change in the next twelve months; however, the Company does not expect the change to have a significant impact on its consolidated statements of income or consolidated balance sheets. These changes may be the result of settlements of ongoing audits. At this time, an estimate of the range of the reasonably possible outcomes within the twelve months cannot be made. The Company recognizes interest and penalties related to uncertain tax positions in its provision for income taxes. The Company accrued potential interest and penalties of $11 million , $15 million , and $2 million in 2017 , 2016 , and 2015 , respectively. The Company recorded a liability for interest and penalties of $55 million , $48 million , and $33 million as of December 31, 2017 , 2016 , and 2015 , respectively. The Company and its subsidiaries file income tax returns in their respective jurisdictions. The Company has substantially concluded all U.S. federal income tax matters for years through 2007. Material U.S. state and local income tax jurisdiction examinations have been concluded for years through 2005. The Company has concluded income tax examinations in its primary non-U.S. jurisdictions through 2005. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Distributable Reserves As a company incorporated in England and Wales, Aon is required under U.K. law to have available “distributable reserves” to make share repurchases or pay dividends to shareholders. Distributable reserves may be created through the earnings of the U.K. parent company and, among other methods, through a reduction in share capital approved by the English Companies Court. Distributable reserves are not directly linked to a U.S. GAAP reported amount (e.g., retained earnings). As of December 31, 2017 and 2016 , the Company had distributable reserves in excess of $1.2 billion and $1.6 billion , respectively. Ordinary Shares Aon has a share repurchase program authorized by the Company’s Board of Directors (the “Repurchase Program”). The Repurchase Program was established in April 2012 with up to $5.0 billion in authorized repurchases, and was increased by $5.0 billion in authorized repurchases in each of November 2014 and February 2017 for a total of $15.0 billion in repurchase authorizations. Under the Repurchase Program, Class A Ordinary Shares may be repurchased through the open market or in privately negotiated transactions, from time to time, based on prevailing market conditions, and will be funded from available capital. During 2017 , the Company repurchased 18.0 million shares at an average price per share of $133.67 , for a total cost of $2.4 billion and recorded an additional $12.0 million of costs associated with the repurchases to retained earnings. Included in the 18.0 million shares were 118,000 shares that did not settle until January 2018. These shares were settled at an average price per share of $134.41 and total cost of $15.9 million . During 2016 , the Company repurchased 12.2 million shares at an average price per share of $102.66 , for a total cost of $1.3 billion and recorded an additional $6 million of costs associated with the repurchases to retained earnings. At December 31, 2017 , the remaining authorized amount for share repurchase under the Repurchase Program was $5.4 billion . Under the Repurchase Program, the Company has repurchased a total of 108.2 million shares for an aggregate cost of approximately $9.6 billion . Net Income Per Share Weighted average shares outstanding are as follows (in millions): Years ended December 31 2017 2016 2015 Basic weighted-average ordinary shares outstanding 258.5 268.1 280.8 Dilutive effect of potentially issuable shares 2.2 2.2 3.0 Diluted weighted-average ordinary shares outstanding 260.7 270.3 283.8 Potentially issuable shares are not included in the computation of diluted net income per share if their inclusion would be antidilutive. There were no shares excluded from the calculation for in 2017 , 2016 , or 2015 . Dividends During 2017 , 2016 , and 2015 , the Company paid dividends of $364 million , $345 million , and $323 million , respectively, to holders of its Class A Ordinary Shares. Dividends paid per Class A Ordinary Share were $1.41 , $1.29 and $1.15 for the years ended December 31, 2017 , 2016 , and 2015 respectively. Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions): Change in Fair Value of Financial Instruments (1) Foreign Currency Translation Adjustments Postretirement Benefit Obligation (2) Total Balance at January 1, 2015 $ (17 ) $ (335 ) $ (2,782 ) $ (3,134 ) Other comprehensive income (loss) before reclassifications: Other comprehensive income (loss) before reclassifications (4 ) (467 ) 82 (389 ) Tax benefit (expense) 1 31 (9 ) 23 Other comprehensive income (loss) before reclassifications, net (3 ) (436 ) 73 (366 ) Amounts reclassified from accumulated other comprehensive income (loss): Amounts reclassified from accumulated other comprehensive income (loss) 11 — 117 128 Tax benefit (expense) (16 ) — (35 ) (51 ) Amounts reclassified from accumulated other comprehensive income (loss), net (5 ) — 82 77 Net current period other comprehensive income (loss) (8 ) (436 ) 155 (289 ) Balance at December 31, 2015 (25 ) (771 ) (2,627 ) (3,423 ) Other comprehensive income (loss) before reclassifications: Other comprehensive income (loss) before reclassifications (25 ) (490 ) (276 ) (791 ) Tax benefit (expense) 6 (3 ) 74 77 Other comprehensive income (loss) before reclassifications, net (19 ) (493 ) (202 ) (714 ) Amounts reclassified from accumulated other comprehensive income (loss): Amounts reclassified from accumulated other comprehensive income (loss) 10 — 322 332 Tax benefit (expense) (3 ) — (104 ) (107 ) Amounts reclassified from accumulated other comprehensive income (loss), net 7 — 218 225 Net current period other comprehensive income (loss) (12 ) (493 ) 16 (489 ) Balance at December 31, 2016 (37 ) (1,264 ) (2,611 ) (3,912 ) Other comprehensive income (loss) before reclassifications: Other comprehensive income (loss) before reclassifications 18 397 (220 ) 195 Tax benefit (expense) (3 ) (5 ) 55 47 Other comprehensive income (loss) before reclassifications, net 15 392 (165 ) 242 Amounts reclassified from accumulated other comprehensive income (loss): Amounts reclassified from accumulated other comprehensive income (loss) (2 ) (7 ) 236 227 Tax benefit (expense) (1 ) — (52 ) (53 ) Amounts reclassified from accumulated other comprehensive income (loss), net (3 ) (7 ) 184 174 Net current period other comprehensive income (loss) 12 385 19 416 Balance at December 31, 2017 $ (25 ) $ (879 ) $ (2,592 ) $ (3,496 ) (1) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense), Other general expenses, and Compensation and benefits. See Note 14 “Derivatives and Hedging” for additional information regarding the Company’s derivative and hedging activity. (2) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Compensation and benefits. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Defined Contribution Savings Plans Aon maintains defined contribution savings plans for the benefit of its employees. The expense recognized for these plans is included in Compensation and benefits in the Consolidated Statements of Income. The expense for the significant plans in the U.S., U.K., Netherlands and Canada is as follows (in millions): Years ended December 31 2017 2016 2015 U.S. $ 105 $ 121 $ 100 U.K. 43 43 42 Netherlands and Canada 25 27 24 Total $ 173 $ 191 $ 166 Pension and Other Postretirement Benefits The Company sponsors defined benefit pension and postretirement health and welfare plans that provide retirement, medical, and life insurance benefits. The postretirement healthcare plans are contributory, with retiree contributions adjusted annually, and the life insurance and pension plans are generally noncontributory. The significant U.S., U.K., Netherlands and Canadian pension plans are closed to new entrants. Pension Plans The following tables provide a reconciliation of the changes in the projected benefit obligations and fair value of assets for the years ended December 31, 2017 and 2016 and a statement of the funded status as of December 31, 2017 and 2016 , for the material U.K., U.S., and other major plans, which are located in the Netherlands, and Canada. These plans represent approximately 92% of the Company’s projected benefit obligations. U.K. U.S. Other (millions) 2017 2016 2017 2016 2017 2016 Change in projected benefit obligation At January 1 $ 4,874 $ 4,985 $ 2,902 $ 3,154 $ 1,227 $ 1,177 Service cost — — — — — — Interest cost 123 158 96 111 26 29 Plan amendment — (20 ) — — — — Settlements (496 ) (159 ) — (281 ) — — Actuarial loss (gain) (22 ) 32 127 (43 ) 16 (7 ) Benefit payments (146 ) (242 ) (152 ) (139 ) (39 ) (39 ) Change in discount rate 122 1,079 182 100 33 100 Foreign currency impact 438 (959 ) — — 138 (33 ) At December 31 $ 4,893 $ 4,874 $ 3,155 $ 2,902 $ 1,401 $ 1,227 Accumulated benefit obligation at end of year $ 4,893 $ 4,874 $ 3,155 $ 2,902 $ 1,373 $ 1,191 Change in fair value of plan assets At January 1 $ 5,675 $ 5,903 $ 1,683 $ 1,951 $ 1,076 $ 1,019 Actual return on plan assets 274 1,233 308 116 70 111 Employer contributions 86 67 119 36 21 20 Settlements (496 ) (159 ) — (281 ) — — Benefit payments (146 ) (242 ) (152 ) (139 ) (39 ) (39 ) Foreign currency impact 513 (1,127 ) — — 128 (35 ) At December 31 $ 5,906 $ 5,675 $ 1,958 $ 1,683 $ 1,256 $ 1,076 Market related value at end of year $ 5,906 $ 5,675 $ 1,926 $ 1,819 $ 1,256 $ 1,076 Amount recognized in Statement of Financial Position at December 31 Funded status $ 1,013 $ 801 $ (1,197 ) $ (1,219 ) $ (145 ) $ (151 ) Unrecognized prior-service cost 19 19 5 6 (7 ) (6 ) Unrecognized loss 1,217 1,237 1,701 1,612 459 400 Net amount recognized $ 2,249 $ 2,057 $ 509 $ 399 $ 307 $ 243 In July 2017, the Company made a non-cash contribution of approximately $80 million to its U.S. pension plan. In March 2016, the Company entered into an insurance contract that covers a portion of the assets within select U.K. pension schemes. The transaction resulted in a decrease of $267 million in both Prepaid pension assets and Accumulated other comprehensive income. Amounts recognized in the Consolidated Statements of Financial Position consist of (in millions): U.K. U.S. Other 2017 2016 2017 2016 2017 2016 Prepaid benefit cost (1) $ 1,034 $ 836 $ — $ — $ — $ — Accrued benefit liability - current (2) (1 ) (1 ) (43 ) (44 ) (5 ) (5 ) Accrued benefit liability - non-current (3) (20 ) (34 ) (1,154 ) (1,175 ) (140 ) (146 ) Accumulated other comprehensive loss 1,236 1,256 1,706 1,618 452 394 Net amount recognized $ 2,249 $ 2,057 $ 509 $ 399 $ 307 $ 243 (1) Included in Prepaid pension (2) Included in Other current liabilities (3) Included in Pension, other postretirement, and postemployment liabilities Amounts recognized in Accumulated other comprehensive loss (income) that have not yet been recognized as components of net periodic benefit cost at December 31, 2017 and 2016 consist of (in millions): U.K. U.S. Other 2017 2016 2017 2016 2017 2016 Net loss $ 1,217 $ 1,237 $ 1,701 $ 1,612 $ 459 $ 400 Prior service cost (income) 19 19 5 6 (7 ) (6 ) Total $ 1,236 $ 1,256 $ 1,706 $ 1,618 $ 452 $ 394 In 2017 , U.S. plans with a projected benefit obligation (“PBO”) and an accumulated benefit obligation (“ABO”) in excess of the fair value of plan assets had a PBO of $3.2 billion , an ABO of $3.2 billion , and plan assets with a fair value of $2.0 billion . U.K. plans with a PBO in excess of the fair value of plan assets had a PBO of $52 million and plan assets with a fair value of $30 million , and U.K. plans with an ABO in excess of the fair value of plan assets had an ABO of $52 million and plan assets with a fair value of $30 million . Other plans with a PBO in excess of the fair value of plan assets had a PBO of $1.4 billion and plan assets with a fair value of $1.2 billion , and other plans with an ABO in excess of the fair value of plan assets had an ABO of $1.3 billion and plan assets with a fair value of $1.2 billion . In 2016 , U.S. plans with a PBO and an ABO in excess of the fair value of plan assets had a PBO of $2.9 billion , an ABO of $2.9 billion , and plan assets of $1.7 billion . U.K. plans with a PBO in excess of the fair value of plan assets had a PBO of $1.2 billion and plan assets with a fair value of $1.1 billion , and plans with an ABO in excess of the fair value of plan assets had an ABO of $1.2 billion and plan assets with a fair value of $1.1 billion . Other plans with a PBO in excess of the fair value of plan assets had a PBO of $1.2 billion and plan assets with a fair value of $1.0 billion , and plans with an ABO in excess of the fair value of plan assets had an ABO of $1.1 billion and plan assets with a fair value of $1.0 billion . The following table provides the components of net periodic benefit (income) cost for the plans (in millions): U.K. U.S. Other 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ — $ — $ 1 $ — $ — $ — $ — $ — $ — Interest cost 123 158 198 96 111 131 26 29 33 Expected return on plan assets, net of administration expenses (199 ) (243 ) (307 ) (140 ) (156 ) (154 ) (47 ) (48 ) (50 ) Amortization of prior-service cost 1 2 1 2 2 2 — — — Amortization of net actuarial loss 31 31 41 50 50 54 11 10 11 Net periodic benefit (income) cost (44 ) (52 ) (66 ) 8 7 33 (10 ) (9 ) (6 ) Settlement expense 125 61 — — 158 — — — — Total net periodic benefit cost (income) $ 81 $ 9 $ (66 ) $ 8 $ 165 $ 33 $ (10 ) $ (9 ) $ (6 ) In 2016 and 2017, the Company used a full-yield curve approach in the estimation of the service and interest cost components of net periodic pension and postretirement benefit cost for its major pension and other postretirement benefit plans; this was obtained by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. In 2015 and prior years, the Company had estimated these components of net periodic pension and postretirement benefit cost by applying a single weighted-average discount rate, derived from the yield curve and used to measure the benefit obligation at the beginning of the period. In March 2017, the Company approved a plan to offer a voluntary one-time lump sum payment option to certain eligible employees of the Company’s U.K. pension plans that, if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer will close during the first quarter of 2018. In total for 2017, lump sum payments from plan assets of £371 million ( $496 million using December 31, 2017 exchange rates) were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.K. pension plan during the fourth quarter of 2017, which in aggregate resulted in a reduction to the projected benefit obligation of £325 million ( $434 million using December 31, 2017 exchange rates) as well as a non-cash settlement charge of £93 million ( $125 million using average December 31, 2017 exchange rate) in the fourth quarter of 2017. An additional non-cash settlement charge is expected in the first quarter of 2018. In March 2016, the Company announced a plan to offer a voluntary one-time lump sum payment option to certain eligible former employees under one of the Company’s U.K. pension plans that, if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer closed during the second quarter of 2016. In total, lump sum payments from plan assets of £116 million ( $159 million using June 30, 2016 exchange rates) were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.K. pension plan during the second quarter of 2016, which in aggregate resulted in a reduction to the projected benefit obligation of £103 million ( $141 million using June 30, 2016 Exchange rates) as well as a non-cash settlement charge of £42 million ( $61 million using average June 30, 2016 exchange rate) in the second quarter of 2016. In August 2016, the Company announced a plan to offer a voluntary one-time lump sum payment option to certain eligible former employees under one of the Company’s U.S. pension plans, that if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer closed during the fourth quarter of 2016. In total, lump sum payments from plan assets of $281 million were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.S. pension plan during the fourth quarter of 2016, which in aggregate resulted in a reduction to the projected benefit obligation of $325 million as well as a non-cash settlement charge of $158 million in the fourth quarter of 2016. The weighted-average assumptions used to determine benefit obligations are as follows: U.K. U.S. (1) Other 2017 2016 2017 2016 2017 2016 Discount rate 2.63% 2.77% 3.27 - 3.61% 3.53 - 4.11% 1.78 - 3.39% 1.85 - 3.81% Rate of compensation increase 3.70 - 4.20% 3.70 - 4.20% N/A N/A 1.00 - 3.00% 1.00 - 3.50% Underlying price inflation 1.87% 1.83% N/A N/A 2.00% 2.00 - 2.50% (1) U.S. pension plans are frozen and therefore not impacted by compensation increases or price inflation. The weighted-average assumptions used to determine the net periodic benefit cost are as follows: U.K. U.S. Other 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 2.77% 3.96% 3.70% 3.53 - 4.11% 3.69 - 4.43% 3.37 - 4.08% 1.85 - 3.81% 2.43 - 3.96% 2.03 - 3.91% Expected return on plan assets, net of administration expenses 3.36% 4.55% 5.09% 7.88% 7.81% 7.96% 2.68 - 5.15% 3.47 - 4.95% 3.99 - 5.21% Rate of compensation increase 3.70 - 4.20% 3.63 - 4.13% 3.55 - 4.05% N/A N/A N/A 1.00 - 3.50% 2.00 - 3.50% 2.25 - 3.50% The amounts in Accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during 2018 , not including voluntary one-time lump sum payments, are $61 million in the U.S. and $42 million outside the U.S. Expected Return on Plan Assets To determine the expected long-term rate of return on plan assets, the historical performance, investment community forecasts and current market conditions are analyzed to develop expected returns for each asset class used by the plans. The expected returns for each asset class are weighted by the target allocations of the plans. The expected return of 7.88% on U.S. plan assets reflects a portfolio that is seeking asset growth through a higher equity allocation while maintaining prudent risk levels. The portfolio contains certain assets that have historically resulted in higher returns, as well as other financial instruments to minimize downside risk. No plan assets are expected to be returned to the Company during 2018 . Fair value of plan assets The Company determined the fair value of plan assets through numerous procedures based on the asset class and available information. Refer to Note 15 “Fair Value Measurements and Financial Instruments” for a description of the procedures performed to determine the fair value of the plan assets. The fair values of the Company’s U.S. pension plan assets at December 31, 2017 and December 31, 2016 , by asset category, are as follows (in millions): Fair Value Measurements Using Asset Category Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents (1) $ 56 $ 56 $ — $ — Equity investments: Large cap domestic 313 313 — — Small cap domestic 17 17 — International 90 90 — Equity derivatives 111 — 111 — Pooled funds: International (2) 270 — — — Large cap domestic (2) 12 — — — Small cap domestic (2) 114 — — — Fixed income investments: (3) Corporate bonds 110 — 110 — Government and agency bonds 148 114 34 — Pooled funds: Corporate bonds (2) 290 — — — Other investments: Real estate and REITs (4) 82 82 — — Alternative investments (2) (5) 345 — — — Total $ 1,958 $ 672 $ 255 $ — (1) Consists of cash and institutional short-term investment funds. (2) Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. (3) Consists of corporate and government bonds, asset-backed securities, and fixed-income derivatives. (4) Consists of exchange traded real estate investment trusts (“REITs”). (5) Consists of limited partnerships, private equity, and hedge funds. Fair Value Measurements Using Asset Category Balance at December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents (1) $ 100 $ 100 $ — $ — Equity investments: Large cap domestic 268 268 — — Small cap domestic 15 15 — — International 64 64 — — Equity derivatives 81 78 3 — Pooled funds: International (2) 196 — — — Small cap domestic (2) 52 — — — Fixed income investments: (3) Corporate bonds 105 — 105 — Government and agency bonds 132 76 56 — Fixed income derivatives 65 65 — — Pooled funds: Corporate bonds (2) 255 — — — Other investments: Commodity derivatives (4) 22 — 22 — Real estate and REITs (5) 61 61 — — Alternative investments (2) (6) 267 — — — Total $ 1,683 $ 727 $ 186 $ — (1) Consists of cash and institutional short-term investment funds. (2) Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. (3) Consists of corporate and government bonds, asset-backed securities, and fixed-income derivatives. (4) Consists of long-dated options on a commodity index. (5) Consists of exchange traded REITs. (6) Consists of limited partnerships, private equity, and hedge funds. The fair values of the Company’s major U.K. pension plan assets at December 31, 2017 and December 31, 2016 , by asset category, are as follows (in millions): Fair Value Measurements Using Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents (1) $ 209 $ 209 $ — $ — Equity investments: Pooled funds: Global (2) 401 — — — Europe (2) 6 — — — Fixed income investments: (3) Derivatives (4) (771 ) — (771 ) — Fixed income securities (5) 2,787 2,362 425 — Annuities 1,909 — — 1,909 Pooled funds: Derivatives (2) 57 — — — Fixed income securities (2) 251 — — — Other investments: Real estate (2) (6) 146 — — — Alternative investments (2) (7) 911 — — — Total $ 5,906 $ 2,571 $ (346 ) $ 1,909 (1) Consists of cash and institutional short-term investment funds. (2) Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. (3) Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles. (4) Consists of equity securities and equity derivatives, including repurchase agreements. (5) Consists of corporate and government bonds. (6) Consists of property funds and trusts holding direct real estate investments. (7) Consists of limited partnerships, private equity, and hedge funds. Fair Value Measurements Using Balance at December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents (1) $ 86 $ 86 $ — $ — Equity investments: Global 135 135 — — Pooled funds: Global (2) 365 — — — Europe (2) 18 — — — Fixed income investments: (3) Derivatives (4) 10 — 10 — Fixed income securities (5) 2,129 1,726 403 — Annuities 1,773 — — 1,773 Pooled funds: Derivatives (2) 62 Fixed income securities (2) 223 — — — Other investments: Real estate (2) (6) 101 — — — Alternative investments (2) (7) 773 — — — Total $ 5,675 $ 1,947 $ 413 $ 1,773 (1) Consists of cash and institutional short-term investment funds. (2) Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. (3) Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles. (4) Consists of equity securities and equity derivatives. (5) Consists of corporate and government bonds and fixed income derivatives. (6) Consists of property funds and trusts holding direct real estate investments. (7) Consists of limited partnerships, private equity, and hedge funds. The following table presents the changes in the Level 3 fair-value category in the Company’s U.K. pension plans for the years ended December 31, 2017 and December 31, 2016 (in millions): Fair Value Measurements Using Level 3 Inputs Annuities Balance at January 1, 2016 $ 827 Actual return on plan assets: Relating to assets still held at December 31, 2016 7 Purchases, sales and settlements—net 1,248 Foreign exchange (309 ) Balance at December 31, 2016 1,773 Actual return on plan assets: Relating to assets still held at December 31, 2017 (66 ) Purchases, sales and settlements—net 45 Foreign exchange 157 Balance at December 31, 2017 $ 1,909 The fair values of the Company’s other major pension plan assets at December 31, 2017 and December 31, 2016 , by asset category, are as follows (in millions): Fair Value Measurements Using Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 11 $ 11 $ — $ — Equity investments: Pooled funds: Global (1) 370 — — — North America (1) 26 — — — Fixed income investments: Fixed income securities (2) 211 — 211 — Derivatives (2) 40 — 40 — Pooled funds: Fixed income securities (1) 566 — — — Other investments: Alternative investments (1) (3) 26 — — — Pooled funds: REITs (1) (4) 6 — — — Total $ 1,256 $ 11 $ 251 $ — (1) Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. (2) Consists of corporate and government bonds and fixed-income derivatives. (3) Consists of limited partnerships, private equity, and hedge funds. (4) Consists of property funds and trusts holding direct real estate investments. Fair Value Measurements Using Balance at December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 11 $ 11 $ — $ — Equity investments: Pooled funds: Global (1) 322 — — — North America (1) 36 — — — Derivatives (1) 20 — — — Fixed income investments: Fixed income securities (2) 166 — 166 — Derivatives (2) 37 — 37 — Pooled funds: Fixed income securities (1) 469 — — — Other investments: Alternative investments (1) (3) 9 — — — Pooled funds: REITs (1) (4) 6 — — — Total $ 1,076 $ 11 $ 203 $ — (1) Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. (2) Consists of corporate and government bonds and fixed-income derivatives. (3) Consists of limited partnerships, private equity, and hedge funds. (4) Consists of property funds and trusts holding direct real estate investments. Investment Policy and Strategy The U.S. investment policy, as established by the Aon Retirement Plan Governance and Investment Committee (“RPGIC”), seeks reasonable asset growth at prudent risk levels within target allocations, which are 55% equity investments, 25% fixed income investments, and 20% other investments. Aon believes that plan assets are well-diversified and are of appropriate quality. The investment portfolio asset allocation is reviewed quarterly and re-balanced to be within policy target allocations. The investment policy is reviewed at least annually and revised, as deemed appropriate by the RPGIC. The investment policies for international plans are generally established by the local pension plan trustees and seek to maintain the plans’ ability to meet liabilities and to comply with local minimum funding requirements. Plan assets are invested in diversified portfolios that provide adequate levels of return at an acceptable level of risk. The investment policies are reviewed at least annually and revised, as deemed appropriate to ensure that the objectives are being met. At December 31, 2017 , the weighted average targeted allocation for the U.K. and non-U.S. plans was 13% for equity investments, 78% for fixed income investments, and 9% for other investments. Cash Flows Contributions Based on current assumptions, in 2018 , the Company expects to contribute approximately $92 million , $63 million , and $22 million to its U.K., U.S. and other significant international pension plans, respectively. Estimated Future Benefit Payments Estimated future benefit payments for plans, not including voluntary one-time lump sum payments, are as follows at December 31, 2017 (in millions): U.K. U.S. Other 2018 $ 134 $ 170 $ 43 2019 141 176 45 2020 145 182 46 2021 151 187 47 2022 159 182 48 2023 – 2027 858 901 257 U.S. and Canadian Other Postretirement Benefits The following table provides an overview of the accumulated projected benefit obligation, fair value of plan assets, funded status and net amount recognized as of December 31, 2017 and 2016 for the Company’s other significant postretirement benefit plans located in the U.S. and Canada (in millions): 2017 2016 Accumulated projected benefit obligation $ 99 $ 110 Fair value of plan assets 17 18 Funded status (82 ) (92 ) Unrecognized prior-service credit (1 ) (3 ) Unrecognized (gain) loss (3 ) 10 Net amount recognized $ (86 ) $ (85 ) Other information related to the Company’s other postretirement benefit plans are as follows: 2017 2016 2015 Net periodic benefit cost recognized (millions) $1 $5 $6 Weighted-average discount rate used to determine future benefit obligations 3.32 - 3.64% 3.71 - 4.15% 3.99 - 4.33% Weighted-average discount rate used to determine net periodic benefit costs 3.71 - 4.15% 3.99 - 4.33% 3.83 - 4.08% Amounts recognized in Accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2017 are $1 million and $3 million of prior service credit and net gain, respectively. The amount in Accumulated other comprehensive income expected to be recognized as a component of net periodic benefit cost during 2018 is $1.4 million and $0.1 million of net gain and prior service credit, respectively. Based on current assumptions, the Company expects: • To contribute $4 million to fund significant other postretirement benefit plans during 2018 . • Estimated future benefit payments will be approximately $4 million each year for 2018 through 2022, and $194 million in aggregate for 2023-2027. The accumulated postretirement benefit obligation is increased by $6 million and decreased by $5 million by a respective 1% increase or decrease to the assumed healthcare trend rate. The service cost and interest cost components of net periodic benefits cost is increased by $0.5 million and decreased by $0.5 million by a respective 1% increase or decrease to the assumed healthcare trend rate. For most of the participants in the U.S. plan, Aon’s liability for future plan cost increases for pre-65 and Medical Supplement plan coverage is limited to 5% per annum. Although the net employer trend rates range from 4% to 9% per year, because of this cap, these plans are effectively limited to 5% per year in the future. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
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 Consolidated Statements of Income in Compensation and benefits (in millions): Years ended December 31 2017 2016 2015 Restricted share units (“RSUs”) $ 182 $ 176 $ 186 Performance share awards ("PSAs") 127 120 123 Employee share purchase plans 10 10 9 Total share-based compensation expense 319 306 318 Tax benefit 73 90 87 Share-based compensation expense, net of tax $ 246 $ 216 $ 231 Restricted Share Units RSUs generally vest between three and five years. The fair value of RSUs is based upon the market value of Aon plc ordinary shares at the date of grant. With certain limited exceptions, any break in continuous employment will cause the forfeiture of all non-vested awards. Compensation expense associated with RSUs is recognized on a straight-line basis over the requisite service period. Dividend equivalents are paid on certain RSUs, based on the initial grant amount. The following table summarizes the status of the Company’s RSUs, including shares related to the Divested Business (shares in thousands): Years ended December 31 2017 2016 2015 Shares Fair Value (1) Shares Fair Value (1) Shares Fair Value (1) Non-vested at beginning of year 6,195 $ 89 7,167 $ 77 8,381 $ 63 Granted 1,700 123 2,252 101 2,459 97 Vested (2,407 ) 82 (2,845 ) 70 (3,385 ) 58 Forfeited (639 ) 93 (379 ) 82 (288 ) 71 Non-vested at end of year 4,849 $ 104 6,195 $ 89 7,167 $ 77 (1) Represents per share weighted average fair value of award at date of grant. The fair value of RSUs that vested during 2017 , 2016 and 2015 was $197 million , $200 million , and $196 million , respectively. Unamortized deferred compensation expense amounted to $341 million as of December 31, 2017, with a remaining weighted-average amortization period of approximately 2.1 years . Performance Share Awards The vesting of PSAs is contingent upon meeting a cumulative level of earnings per share related performance over a three -year period. 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. The grant date fair value of PSAs is based upon the market price of Aon plc ordinary shares at the date of grant. The performance conditions are not considered in the determination of the grant date fair value for these awards. Compensation expense is recognized over the performance period based on management’s estimate of the number of units expected to vest. Management evaluates on a quarterly basis its estimate of the actual number of shares expected to be issued at the end of the programs. The cumulative effect of the change in estimate is recognized in the period of change as an adjustment to Compensation and benefits expense, if necessary. Dividend equivalents are not paid on PSAs. Information regarding the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the years ended December 31, 2017 , 2016 , and 2015 , respectively, is as follows (shares in thousands and dollars in millions, except fair value): 2017 2016 2015 Target PSAs granted during period 548 750 963 Weighted average fair value per share at date of grant $ 114 $ 100 $ 96 Number of shares that would be issued based on current performance levels 944 745 1,527 Unamortized expense, based on current performance levels $ 78 $ 25 $ — During 2017 , the Company issued approximately 0.9 million shares in connection with performance achievements related to the 2014-2016 Leadership Performance Plan (“LPP”) cycle. During 2016 , the Company issued approximately 1.3 million shares in connection with performance achievements related to the 2013-2015 LPP cycle. During 2015 , the Company issued approximately 1.6 million shares in connection with performance achievements related to the 2012-2014 LPP cycle. |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2017 | |
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, enters into monetary intercompany transfers denominated in a currency that differs from its functional currency, or enters into 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 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 on 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 (expense) in the Consolidated Statements of Income. The notional and fair values of derivative instruments are as follows (in millions): Notional Amount Net Amount of Derivative Assets Presented in the Statements of Financial Position (1) Net Amount of Derivative Liabilities Presented in the Statements of Financial Position (2) As of December 31 2017 2016 2017 2016 2017 2016 Foreign exchange contracts: Accounted for as hedges $ 701 $ 758 $ 31 $ 13 $ 3 $ 12 Not accounted for as hedges (3) 254 189 1 1 3 1 Total $ 955 $ 947 $ 32 $ 14 $ 6 $ 13 (1) Included within Other current assets ( $9 million in 2017 and $5 million in 2016 ) or Other non-current assets ( $23 million in 2017 and $9 million in 2016 ). (2) Included within Other current liabilities ( $3 million in 2017 and $6 million in 2016 ) or Other non-current liabilities ( $3 million in 2017 and $7 million in 2016 ). (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. The amounts of derivative gains (losses) recognized in the Consolidated Financial Statements are as follows (in millions): 2017 2016 2015 Gain (Loss) Recognized in Accumulated Other Comprehensive Loss $ 18 $ (25 ) $ (9 ) Location of future reclassification from Accumulated Other Comprehensive Loss Compensation and Benefits $ 12 $ 8 $ 4 Other General Expenses 4 (13 ) (3 ) Interest Expense — — — Other Income (Expense) 2 (20 ) (10 ) The amounts of derivative gains (loss) reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) are as follows (in millions): 2017 2016 2015 Compensation and Benefits $ 14 $ 2 $ 4 Other General Expenses (5 ) (4 ) (1 ) Interest Expense (1 ) (1 ) (9 ) Other Income (Expense) (9 ) (7 ) (11 ) Total $ (1 ) $ (10 ) $ (17 ) The Company estimates that approximately $9 million of pretax losses currently included within Accumulated other comprehensive loss will be reclassified in to earnings in the next twelve months. The amount of gain (loss) recognized in income on the ineffective portion of derivatives for 2017 , 2016 , and 2015 was immaterial. The Company recorded a gain of $7.0 million for 2017 and a loss of $0.2 million and $8 million for 2016 and 2015 , respectively, in Other income (expense) for foreign exchange derivatives not designated or qualifying as hedges. Net Investments in Foreign Operations Risk Management The Company uses non-derivative financial instruments to protect the value of its investments in a number of foreign subsidiaries. In 2016, the Company designated a portion of its Euro-denominated commercial paper issuances as a non-derivative hedge of the foreign currency exposure of a net investment in its European operations. The change in fair value of the designated portion of the Euro-denominated commercial paper due to changes in foreign currency exchange rates is recorded in Foreign currency translation adjustment, a component of Accumulated other comprehensive income (loss), to the extent it is effective as a hedge. The foreign currency translation adjustment of the hedged net investments that is also recorded in Accumulated other comprehensive income (loss). Ineffective portions of net investment hedges, if any, are reclassified from Accumulated other comprehensive income (loss) into earnings during the period of change. As of December 31, 2017 , the Company had no outstanding Euro-denominated commercial paper designated as a hedge of the foreign currency exposure of its net investment in its European operations. As of December 31, 2017 , the unrealized gain recognized in Accumulated other comprehensive income (loss) related to the net investment non derivative hedging instrument was immaterial. The Company did not reclassify any deferred gains or losses related to net investment hedges from Accumulated other comprehensive income (loss) to earnings during the twelve months ended December 31, 2017 . In addition, the Company did not incur any ineffectiveness related to net investment hedges during the twelve months ended December 31, 2017 . |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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, including pension assets (refer to Note 12 “Employee Benefits”): Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews treasury and government money market funds to obtain reasonable assurance that the fund net asset value is $1 per share, and reviews the floating net asset value of institutional prime money market funds for reasonableness. Cash and cash equivalents consist of cash and institutional short-term investment funds. The Company reviews the short-term investment funds to obtain reasonable assurance that the fund net asset value is $1 per share. Equity investments consist of domestic and international equity securities and equity derivatives valued using the closing stock price on a national securities exchange. Over the counter equity derivatives are valued using observable inputs such as underlying prices of the underlying security and volatility. On a sample basis 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 independently verifies the observable inputs for Level 2 equity derivatives and securities. Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves, and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using discounted cash flow models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains an understanding of the models, inputs, and assumptions used in developing prices provided by its vendors through discussions with the fund managers. The Company 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 historically are not material to the fair value estimates used in the Consolidated Financial Statements. Pooled funds consist of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles. Pooled investment funds fair value is estimated based on the proportionate share ownership in the underlying net assets of the investment, which is based on the fair value of the underlying securities that trade on a national securities exchange. The Company gains an understanding of the investment guidelines and valuation policies of the fund and discusses fund performance with pooled fund managers. The Company obtains audited fund manager financial statements, when available. If the pooled fund is designed to replicate a publicly traded index, the Company compares the performance of the fund to the index to assess the reasonableness of the fair value measurement. Alternative investments consist of limited partnerships, private equity, and hedge funds. Alternative investment fair value is generally estimated based on the proportionate share ownership in the underlying net assets of the investment as determined by the general partner or investment manager. The valuations are based on various factors depending on investment strategy, proprietary models, and specific financial data or projections. The Company obtains audited fund manager financial statements, when available. The Company obtains a detailed understanding of the models, inputs, and assumptions used in developing prices provided by the investment managers (or appropriate party) through regular discussions. The Company also obtains the investment manger’s valuation policies and assesses the 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 historically are not material to the fair value estimates in the Consolidated Financial Statements. Derivatives are carried at fair value, based upon industry standard valuation techniques that use, where possible, current market-based or independently sourced pricing inputs, such as interest rates, currency exchange rates, or implied volatilities. Annuity contracts consist of insurance group annuity contracts purchased to match the pension benefit payment stream owed to certain selected plan participant demographics within a few major U.K. defined benefit plans. Annuity contracts are valued using a discounted cash flow model utilizing assumptions such as discount rate, mortality, and inflation. Real estate and REITs consist of publicly traded real estate investment trusts (“REITs”) and direct real estate investments. Level 1 REITs are valued using the closing stock price on a national securities exchange. Non Level 1 values are based on the proportionate share of ownership in the underlying net asset value as determined by the investment manager. The Company independently reviews the listing of Level 1 REIT securities in the portfolio and agrees the closing stock prices to a national securities exchange. The Company gains an understanding of the investment guidelines and valuation policies of the non Level 1 real estate funds and discusses performance with the fund managers. The Company obtains audited fund manager financial statements, when available. See the description of “Alternative investments” for further detail on valuation procedures surrounding non Level 1 REITs. 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 December 31, 2017 and December 31, 2016 , respectively (in millions): Fair Value Measurements Using Balance at December 31, 2017 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 (1) $ 1,847 $ 1,847 $ — $ — Other investments: Government bonds 1 — 1 — Equity investments 4 — 4 — Derivatives (2) : Gross Foreign exchange contracts 33 — 33 — Liabilities: Derivatives (2) : Gross Foreign exchange contracts 6 — 6 — (1) Included within Fiduciary assets, Short-term investments or Cash and cash equivalents in the Consolidated Statements of Financial Position, depending on their nature and initial maturity. (2) Refer to Note 14 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. Fair Value Measurements Using Balance at December 31, 2016 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 (1) $ 1,371 $ 1,371 $ — $ — Other investments: Government bonds 1 — 1 — Equity investments 9 6 3 — Derivatives (2) : Gross Foreign exchange contracts 15 — 15 — Liabilities: Derivatives (2) : Gross Foreign exchange contracts 14 — 14 — (1) Included within Fiduciary assets, Short-term investments or Cash and cash equivalents in the Consolidated Statements of Financial Position, depending on their nature and initial maturity. (2) Refer to Note 14 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. There were no transfers of assets or liabilities between fair value hierarchy levels during 2017 or 2016 . The Company recognized no realized or unrealized gains or losses in the Consolidated Statements of Income related to assets and liabilities measured at fair value using unobservable inputs in 2017 , 2016 , or 2015 . The fair value of 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): 2017 2016 As of December 31 Carrying Value Fair Value Carrying Value Fair Value Current portion of long-term debt (1) $ 299 $ 301 $ — $ — Long-term debt 5,667 6,267 5,869 6,264 (1) Excludes commercial paper program. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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 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. While Aon maintains meaningful E&O insurance and other insurance programs 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 Consolidated Statements of Financial Position and have been recognized in Other general expenses in the 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 reasonably estimable are not accrued for in the financial statements. The Company has included in the current matters described below certain 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. In addition, the Company may from time to time disclose matters for which the probability of loss could be remote but the claim amounts associated with such matters are potentially significant. 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 $0.3 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 may change, and the estimates themselves may 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. Current Matters A 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. In August 2015, a jury returned a verdict in favor of Opry Mills and against the insurers in the amount of $ 204 million . On January 26, 2018, the Tennessee Court of Appeals reversed and remanded, reversing summary judgment in favor of plaintiffs and concluding that coverage is limited to $50 million . Aon believes 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 was filed, although a tolling agreement was 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 ( $60 million at December 31, 2017 exchange rates). In December 2014, the Court of Appeal granted the employer leave to appeal the High Court decision. At a hearing in October 2016, the Court of Appeal approved a settlement of the pending litigation. On October 31, 2016, the fund’s trustees and employer sued Aon in the High Court, Chancery Division, London, alleging negligence and breach of duty in relation to the governing documents. The proceedings were served on Aon on December 20, 2016. The claimants seek damages of approximately £70 million ( $94 million at December 31, 2017 exchange rates). Aon believes that it has meritorious defenses and intends to vigorously defend itself against this claim. On June 29, 2015, Lyttelton Port Company Limited (“LPC”) sued Aon New Zealand in the Christchurch Registry of the High Court of New Zealand. LPC alleges, among other things, that Aon was negligent and in breach of contract in arranging LPC’s property insurance program for the period covering June 30, 2010, to June 30, 2011. LPC contends that acts and omissions by Aon caused LPC to recover less than it otherwise would have from insurers for losses suffered in the 2010/2011 Canterbury earthquakes. LPC claims damages of approximately NZD $184 million ( $130 million at December 31, 2017 exchange rates) plus interest and costs. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims. On October 3, 2017, Christchurch City Council (“CCC”) invoked arbitration to pursue a claim that it asserts against Aon New Zealand. Aon provided insurance broking services to CCC in relation to CCC’s 2010-2011 material damage and business interruption program. In December 2015, CCC settled its property and business interruption claim for its losses arising from the 2010-2011 Canterbury earthquakes against the underwriter of its material damage and business interruption program and the reinsurers of that underwriter. CCC contends that acts and omissions by Aon caused CCC to recover less in that settlement than it otherwise would have. CCC claims damages of approximately NZD $528 million ( $372 million at December 31, 2017 exchange rates) plus interest and costs. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims. In April 2017, the FCA announced an investigation relating to suspected competition law breaches in the aviation and aerospace broking industry, which, for Aon in 2016, represented less than $100 million in global revenue. The European Commission has now assumed jurisdiction over the investigation in place of the FCA. Other antitrust agencies outside the European Commission are also conducting formal or informal investigations regarding these matters. Aon intends to work diligently with all antitrust agencies concerned to ensure they can carry out their work as efficiently as possible. At this time, in light of the uncertainties and many variables involved, we cannot estimate the ultimate impact on our company from these investigations or any related private litigation, nor any damages, penalties, or fines related to them. There can be no assurance that the ultimate resolution of these matters will not have a material adverse effect on our consolidated financial position, results or operations, or liquidity. Aon UK Limited is an indirect wholly-owned subsidiary of the Company. Our Forms 10-Q for the second and third quarters of 2017 anticipated that Aon UK Limited’s interactions with the FCA (its primary financial regulator in the UK) concerning Aon UK Limited’s systems and controls might result in additional charges above the amounts accrued for in connection with those interactions. Although Aon continues to interact as a matter of course with the FCA, the specific reviews and interactions that Aon anticipated might result in additional charges have concluded without those additional charges materializing. Settled/Closed Matters 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 business acquired by 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 sought damages of approximately CHF 46 million ( $47 million at June 30, 2017 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 June 30, 2017 exchange rates) and $3.1 million , plus interest and adverse costs. The entire amount of the judgment, including interest through December 31, 2014, totaled CHF 27.9 million ( $28 million at December 31, 2014 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 ( $14 million at January 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. After the Geneva Appellate Court affirmed the judgment of the Geneva Tribunal of First Instance, the Aon subsidiary filed an appeal with the Swiss Federal Tribunal. By judgment issued June 16, 2017, the Swiss Federal Tribunal affirmed in part and reversed in part the appellate judgment and remanded the case to the appellate court. IRU and Aon subsidiary agreed that the Aon subsidiary would pay IRU CHF 15.0 million ( $15 million at June 30, 2017 exchange rates) and $344,000 . As a result of this agreement, the legal proceedings between IRU and the Aon subsidiary have been discontinued. Guarantees and Indemnifications Redomestication In connection with the redomicile of Aon’s headquarters (the “Redomestication”), the Company on April 2, 2012 entered into 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 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. Sale of the Divested Business In connection with the sale of the Divested Business, the Company guaranteed future operating lease commitments related to certain facilities assumed by the Buyer. The Company is obligated to perform under the guarantees if the Divested Business defaults on such leases at any time during the remainder of the lease agreements, which expire on various dates through 2024. As of December 31, 2017 , the undiscounted maximum potential future payments under the lease guarantee is $100 million , with an estimated fair value of $23 million . Additionally, the Company is subject to performance guarantee requirements under certain client arrangements that were assumed by the Buyer. Should the Divested Business fail to perform as required by the terms of the arrangements, the Company would be required to fulfill the remaining contract terms, which expire on various dates through 2023. As of December 31, 2017 , the undiscounted maximum potential future payments under the performance guarantees were $212 million , with an estimated fair value of $1 million . Letters of Credit Aon has entered into a number of arrangements whereby the Company’s performance on certain obligations is guaranteed by a third party through the issuance of a letter of credit (“LOCs”). The Company had total LOCs outstanding of approximately $96 million at December 31, 2017 , compared to $90 million at December 31, 2016 . 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 obtained LOCs to cover contingent payments for taxes and other business obligations to third parties, and other guarantees for miscellaneous purposes at its international subsidiaries. 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 $95 million at December 31, 2017 , which is unchanged as compared to December 31, 2016 . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Beginning in the first quarter of 2017 and following the transaction described in Note 4 “Discontinued Operations,” the Company began leading a set of initiatives designed to strengthen Aon and unite the firm with one portfolio of capability enabled by proprietary data and analytics and one operating model to deliver additional insight, connectivity and efficiency. These initiatives reinforce Aon’s return on invested capital (“ROIC”) decision-making process and emphasis on free cash flow. The Company is now operating as one segment that includes all of Aon’s continuing operations, which as a global professional services firm provides advice and solutions to clients focused on risk, retirement, and health through five revenue lines which make up its principal products and services. The CODM assesses the performance of the Company and allocates resources based on one company: Aon United. The Company’s reportable operating segment has been determined using a management approach, which is consistent with the basis and manner in which Aon’s CODM uses financial information for the purposes of allocating resources and evaluating performance. The CODM assesses performance and allocates resources based on total Aon results against its key four metrics, including organic revenue growth, expense discipline, and collaborative behaviors that maximize value for Aon and its shareholders, regardless of which revenue line it benefits. Prior period comparative segment information has been restated to conform with current year presentation. In prior periods, the Company did not include unallocated expenses in segment operating income, which represented corporate governance costs not allocated to the previous operating segments. These costs are now reflected within operating expenses for the current and prior period. Revenue from continuing operations for each of the Company’s principal product and service lines is as follows (in millions): Year ended December 31 2017 2016 2015 Commercial Risk Solutions $ 4,169 $ 3,929 $ 4,029 Reinsurance Solutions 1,429 1,361 1,358 Retirement Solutions 1,755 1,707 1,916 Health Solutions 1,515 1,370 1,167 Data & Analytic Services 1,140 1,050 1,021 Elimination (10 ) (8 ) (11 ) Total revenue $ 9,998 $ 9,409 $ 9,480 As Aon is operating as one segment, segment profit or loss is consistent with consolidated reporting as disclosed on the Consolidated Statements of Income. Revenues are generally attributed to geographic areas based on the location of the resources producing the revenues. Intercompany revenues and expenses are eliminated in consolidated results. Consolidated Revenue by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions): Years ended December 31 Total United States Americas other than U.S. United Kingdom Europe, Middle East, & Africa Asia Pacific 2017 $ 9,998 $ 4,425 $ 976 $ 1,436 $ 2,025 $ 1,136 2016 9,409 3,981 899 1,354 1,760 1,415 2015 9,480 3,924 1,118 1,419 1,826 1,193 Consolidated Non-current assets by geographic area are as follows (in millions): Years ended December 31 Total United States Americas other than U.S. United Kingdom Europe, Middle East, & Africa Asia Pacific 2017 $ 564 $ 239 $ 47 $ 68 $ 114 $ 96 2016 550 243 60 65 85 97 |
Guarantee of Registered Securit
Guarantee of Registered Securities | 12 Months Ended |
Dec. 31, 2017 | |
Guarantee of Registered Securities | |
Guarantee of Registered Securities | Guarantee of Registered Securities As described in Note 16 “Commitments and Contingencies,” 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, including the 5.00% Notes due September 2020, the 8.205% Notes due January 2027 and the 6.25% Notes due September 2040 (collectively, the “Aon Corp Notes”). Aon Corporation is a 100% indirectly owned subsidiary of Aon plc. All guarantees of Aon plc are full and unconditional. There are no other subsidiaries of Aon plc that are guarantors of the Aon Corp Notes. In addition, 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 and 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, the 4.60% Notes due June 2044, the 4.75% Notes due May 2045, the 2.80% Notes due March 2021, and the 3.875% Notes due December 2025 (collectively, the “Aon plc Notes”). 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 Aon plc Notes. As a result of the existence of these guarantees, the Company has elected to present the financial information set forth in this footnote in accordance with Rule 3-10 of Regulation S-X. The following tables set forth Condensed Consolidating Statements of Income and Condensed Consolidating Statements of Comprehensive Income for the years ended December 31, 2017 , 2016 , and 2015 , Condensed Consolidating Statements of Financial Position as of December 31, 2017 and December 31, 2016 , and Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2017 , 2016 , and 2015 , 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. The principal consolidating adjustments are to eliminate the investment in subsidiaries and intercompany balances and transactions. As described in Note 1 “Basis of Presentation,” and consistent with the Company’s Consolidated Financial Statements, the following tables present the financial results of the Divested Business as discontinued operations for all periods presented within non-guarantor Subsidiaries. The impact of intercompany transactions have been reflected within continuing operations in the Condensed Consolidating Financial Statements. Condensed Consolidating Statement of Income Year Ended December 31, 2017 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenue Total revenue $ — $ — $ 9,998 $ — $ 9,998 Expenses Compensation and benefits 150 35 5,904 — 6,089 Information technology — — 419 — 419 Premises — — 348 — 348 Depreciation of fixed assets — — 187 — 187 Amortization and impairment of intangible assets — — 704 — 704 Other general expenses (income) 12 (6 ) 1,266 — 1,272 Total operating expenses 162 29 8,828 — 9,019 Operating income (loss) (162 ) (29 ) 1,170 — 979 Interest income — 52 4 (29 ) 27 Interest expense (202 ) (94 ) (15 ) 29 (282 ) Intercompany interest income (expense) 14 (543 ) 529 — — Intercompany other income (expense) 247 (411 ) 164 — — Other income (expense) (27 ) 21 (51 ) 18 (39 ) Income (loss) from continuing operations before income taxes (130 ) (1,004 ) 1,801 18 685 Income tax expense (benefit) (43 ) (110 ) 403 — 250 Net income (loss) from continuing operations (87 ) (894 ) 1,398 18 435 Income from discontinued operations, net of tax — — 828 — 828 Net income (loss) before equity in earnings of subsidiaries (87 ) (894 ) 2,226 18 1,263 Equity in earnings of subsidiaries, net of tax 1,295 1,054 160 (2,509 ) — Net income 1,208 160 2,386 (2,491 ) 1,263 Less: Net income attributable to noncontrolling interests — — 37 — 37 Net income attributable to Aon shareholders $ 1,208 $ 160 $ 2,349 $ (2,491 ) $ 1,226 Condensed Consolidating Statement of Income Year Ended December 31, 2016 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenue Total revenue $ — $ — $ 9,409 $ — $ 9,409 Expenses Compensation and benefits 130 171 5,386 — 5,687 Information technology — — 386 — 386 Premises — — 343 — 343 Depreciation of fixed assets — — 162 — 162 Amortization and impairment of intangible assets — — 157 — 157 Other general expenses (income) — 2 1,034 — 1,036 Total operating expenses 130 173 7,468 — 7,771 Operating income (loss) (130 ) (173 ) 1,941 — 1,638 Interest income — 16 22 (29 ) 9 Interest expense (196 ) (101 ) (14 ) 29 (282 ) Intercompany interest income (expense) 14 (541 ) 527 — — Intercompany other income (expense) 274 (361 ) 87 — — Other income (expense) 15 (5 ) 44 (18 ) 36 Income (loss) from continuing operations before income taxes (23 ) (1,165 ) 2,607 (18 ) 1,401 Income tax expense (benefit) (55 ) (325 ) 528 — 148 Net income (loss) from continuing operations 32 (840 ) 2,079 (18 ) 1,253 Income from discontinued operations, net of tax — — 177 — 177 Net income (loss) before equity in earnings of subsidiaries 32 (840 ) 2,256 (18 ) 1,430 Equity in earnings of subsidiaries, net of tax 1,382 1,219 379 (2,980 ) — Net income 1,414 379 2,635 (2,998 ) 1,430 Less: Net income attributable to noncontrolling interests — — 34 — 34 Net income attributable to Aon shareholders $ 1,414 $ 379 $ 2,601 $ (2,998 ) $ 1,396 Condensed Consolidating Statement of Income Year Ended December 31, 2015 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustment Consolidated Revenue Total revenue $ — $ — $ 9,480 $ — $ 9,480 Expenses Compensation and benefits 136 32 5,437 — 5,605 Information technology — — 389 — 389 Premises — — 362 — 362 Depreciation of fixed assets — — 164 — 164 Amortization and impairment of intangible assets — 173 — 173 Other general expenses (income) 8 7 1,185 — 1,200 Total operating expenses 144 39 7,710 — 7,893 Operating income (loss) (144 ) (39 ) 1,770 — 1,587 Interest income — 14 19 (19 ) 14 Interest expense (140 ) (130 ) (22 ) 19 (273 ) Intercompany interest income (expense) 429 (479 ) 50 — — Intercompany other income (expense) 302 (422 ) 120 — — Other income (expense) (1 ) — 101 — 100 Income (loss) from continuing operations before income taxes 446 (1,056 ) 2,038 — 1,428 Income tax expense (benefit) 45 (262 ) 392 — 175 Net income (loss) from continuing operations 401 (794 ) 1,646 — 1,253 Income from discontinued operations, net of tax — — 169 — 169 Net income (loss) before equity in earnings of subsidiaries 401 (794 ) 1,815 — 1,422 Equity in earnings of subsidiaries, net of tax 984 1,289 495 (2,768 ) — Net income 1,385 495 2,310 (2,768 ) 1,422 Less: Net income attributable to noncontrolling interests — — 37 — 37 Net income attributable to Aon shareholders $ 1,385 $ 495 $ 2,273 $ (2,768 ) $ 1,385 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2017 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 1,208 $ 160 $ 2,386 $ (2,491 ) $ 1,263 Less: Net income attributable to noncontrolling interests — — 37 — 37 Net income (loss) attributable to Aon shareholders 1,208 160 2,349 (2,491 ) 1,226 Other comprehensive income (loss), net of tax: Change in fair value of financial instruments — 3 9 — 12 Foreign currency translation adjustments — — 408 (18 ) 390 Postretirement benefit obligation — (101 ) 120 — 19 Total other comprehensive income (loss) — (98 ) 537 (18 ) 421 Equity in other comprehensive income (loss) of subsidiaries, net of tax 434 515 417 (1,366 ) — Less: Other comprehensive loss attributable to noncontrolling interests — — 5 — 5 Total other comprehensive income (loss) attributable to Aon shareholders 434 417 949 (1,384 ) 416 Comprehensive income (loss) attributable to Aon shareholders $ 1,642 $ 577 $ 3,298 $ (3,875 ) $ 1,642 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2016 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 1,414 $ 379 $ 2,635 $ (2,998 ) $ 1,430 Less: Net income attributable to noncontrolling interests — — 34 — 34 Net income (loss) attributable to Aon shareholders 1,414 379 2,601 (2,998 ) 1,396 Other comprehensive income (loss), net of tax: Change in fair value of financial instruments — (1 ) (11 ) — (12 ) Foreign currency translation adjustments (2 ) 21 (532 ) 18 (495 ) Postretirement benefit obligation — 68 (52 ) — 16 Total other comprehensive income (loss) (2 ) 88 (595 ) 18 (491 ) Equity in other comprehensive loss of subsidiaries, net of tax (505 ) (547 ) (459 ) 1,511 — Less: Other comprehensive loss attributable to noncontrolling interests — — (2 ) — (2 ) Total other comprehensive income (loss) attributable to Aon shareholders (507 ) (459 ) (1,052 ) 1,529 (489 ) Comprehensive income (loss) attributable to Aon shareholders $ 907 $ (80 ) $ 1,549 $ (1,469 ) $ 907 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2015 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 1,385 $ 495 $ 2,310 $ (2,768 ) $ 1,422 Less: Net income attributable to noncontrolling interests — — 37 — 37 Net income (loss) attributable to Aon shareholders 1,385 495 2,273 (2,768 ) 1,385 Other comprehensive income (loss), net of tax: Change in fair value of financial instruments — — (8 ) — (8 ) Foreign currency translation adjustments — (47 ) (395 ) — (442 ) Postretirement benefit obligation — 12 143 — 155 Total other comprehensive income (loss) — (35 ) (260 ) — (295 ) Equity in other comprehensive loss of subsidiaries, net of tax (289 ) (259 ) (294 ) 842 — Less: Other comprehensive loss attributable to noncontrolling interests — — (6 ) — (6 ) Total other comprehensive income (loss) attributable to Aon shareholders (289 ) (294 ) (548 ) 842 (289 ) Comprehensive income (loss) attributable to Aon shareholders $ 1,096 $ 201 $ 1,725 $ (1,926 ) $ 1,096 Condensed Consolidating Statement of Financial Position As of December 31, 2017 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1 $ 2,524 $ 793 $ (2,562 ) $ 756 Short-term investments — 355 174 — 529 Receivables, net — 2 2,476 — 2,478 Fiduciary assets — — 9,625 — 9,625 Intercompany receivables 165 1,046 10,824 (12,035 ) — Other current assets 1 29 259 — 289 Current assets of discontinued operations — — — — — Total Current Assets 167 3,956 24,151 (14,597 ) 13,677 Goodwill — — 8,358 — 8,358 Intangible assets, net — — 1,733 — 1,733 Fixed assets, net — — 564 — 564 Deferred tax asset 99 396 143 (249 ) 389 Intercompany receivables 414 261 8,232 (8,907 ) — Prepaid pension — 6 1,054 — 1,060 Other non-current assets 1 35 271 — 307 Investment in subsidiary 8,884 17,910 20 (26,814 ) — Non-current assets of discontinued operations — — — — — TOTAL ASSETS $ 9,565 $ 22,564 $ 44,526 $ (50,567 ) $ 26,088 LIABILITIES AND EQUITY LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities $ 574 $ 36 $ 3,913 $ (2,562 ) $ 1,961 Short-term debt and current portion of long-term debt — — 299 — 299 Fiduciary liabilities — — 9,625 — 9,625 Intercompany payables 130 11,149 756 (12,035 ) — Other current liabilities 16 64 790 — 870 Current liabilities of discontinued operations — — — — — Total Current Liabilities 720 11,249 15,383 (14,597 ) 12,755 Long-term debt 4,251 1,415 1 — 5,667 Deferred tax liabilities — — 376 (249 ) 127 Pension, other postretirement and other post-employment liabilities — 1,391 398 — 1,789 Intercompany payables — 8,398 509 (8,907 ) — Other non-current liabilities 11 91 1,000 — 1,102 Non-current liabilities of discontinued operations — — — — — TOTAL LIABILITIES 4,982 22,544 17,667 (23,753 ) 21,440 TOTAL AON SHAREHOLDERS’ EQUITY 4,583 20 26,794 (26,814 ) 4,583 Noncontrolling interests — — 65 — 65 TOTAL EQUITY 4,583 20 26,859 (26,814 ) 4,648 TOTAL LIABILITIES AND EQUITY $ 9,565 $ 22,564 $ 44,526 $ (50,567 ) $ 26,088 Condensed Consolidating Statement of Financial Position As of December 31, 2016 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ — $ 1,633 $ 655 $ (1,862 ) $ 426 Short-term investments — 140 150 — 290 Receivables, net — 3 2,103 — 2,106 Fiduciary assets — — 8,959 — 8,959 Intercompany receivables 105 1,880 9,825 (11,810 ) — Other current assets — 25 222 — 247 Current assets of discontinued operations — — 1,118 — 1,118 Total Current Assets 105 3,681 23,032 (13,672 ) 13,146 Goodwill — — 7,410 — 7,410 Intangible assets, net — — 1,890 — 1,890 Fixed assets, net — — 550 — 550 Deferred tax asset 134 726 171 (706 ) 325 Intercompany receivables 366 261 8,711 (9,338 ) — Prepaid pension — 5 853 — 858 Other non-current assets 2 119 239 — 360 Investment in subsidiary 10,107 17,131 (356 ) (26,882 ) — Non-current assets of discontinued operations — — 2,076 — 2,076 TOTAL ASSETS $ 10,714 $ 21,923 $ 44,576 $ (50,598 ) $ 26,615 LIABILITIES AND EQUITY LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities $ 585 $ 44 $ 2,837 $ (1,862 ) $ 1,604 Short-term debt and current portion of long-term debt 279 50 7 — 336 Fiduciary liabilities — — 8,959 — 8,959 Intercompany payables 142 10,399 1,269 (11,810 ) — Other current liabilities — 63 593 — 656 Current liabilities of discontinued operations — — 940 — 940 Total Current Liabilities 1,006 10,556 14,605 (13,672 ) 12,495 Long-term debt 4,177 1,413 279 — 5,869 Deferred tax liabilities — — 759 (658 ) 101 Pension, other postretirement and other post-employment liabilities — 1,356 404 — 1,760 Intercompany payables — 8,877 461 (9,338 ) — Other non-current liabilities 8 77 634 — 719 Non-current liabilities of discontinued operations — — 139 — 139 TOTAL LIABILITIES 5,191 22,279 17,281 (23,668 ) 21,083 TOTAL AON SHAREHOLDERS’ EQUITY 5,523 (356 ) 27,238 (26,930 ) 5,475 Noncontrolling interests — — 57 — 57 TOTAL EQUITY 5,523 (356 ) 27,295 (26,930 ) 5,532 TOTAL LIABILITIES AND EQUITY $ 10,714 $ 21,923 $ 44,576 $ (50,598 ) $ 26,615 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2017 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Cash provided by (used for) operating activities - continuing operations $ 2,787 $ 503 $ 2,010 $ (4,631 ) $ 669 Cash provided by operating activities - discontinued operations — — 65 — 65 CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 2,787 503 2,075 (4,631 ) 734 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from investments 224 587 582 (1,325 ) 68 Payments for investments (261 ) (29 ) (576 ) 802 (64 ) Net purchases (sales) of short-term investments - non-fiduciary — (215 ) (17 ) — (232 ) Acquisition of businesses, net of cash acquired — — (1,029 ) — (1,029 ) Sale of businesses, net of cash sold — — 4,246 — 4,246 Capital expenditures — — (183 ) — (183 ) Cash provided by (used for) investing activities - continuing operations (37 ) 343 3,023 (523 ) 2,806 Cash used for investing activities - discontinued operations — — (19 ) — (19 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES (37 ) 343 3,004 (523 ) 2,787 CASH FLOWS FROM FINANCING ACTIVITIES Share repurchase (2,399 ) — — — (2,399 ) Advances from (to) affiliates 426 95 (4,975 ) 4,454 — Issuance of shares for employee benefit plans (121 ) — — — (121 ) Issuance of debt 544 1,100 10 — 1,654 Repayment of debt (835 ) (1,150 ) (14 ) — (1,999 ) Cash dividends to shareholders (364 ) — — — (364 ) Noncontrolling interests and other financing activities — (36 ) — (36 ) Cash provided by (used for) financing activities - continuing operations (2,749 ) 45 (5,015 ) 4,454 (3,265 ) Cash used for financing activities - discontinued operations — — — — — CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES (2,749 ) 45 (5,015 ) 4,454 (3,265 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — 69 — 69 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1 891 133 (700 ) 325 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR (1) — 1,633 660 (1,862 ) 431 CASH AND CASH EQUIVALENTS AT END OF PERIOD (2) $ 1 $ 2,524 $ 793 $ (2,562 ) $ 756 (1) Includes $5 million of discontinued operations at December 31, 2016. (2) Includes $0 million of discontinued operations at December 31, 2017 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2016 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Cash provided by (used for) operating activities - continuing operations $ 2,705 $ (536 ) $ 2,768 $ (3,108 ) $ 1,829 Cash provided by operating activities - discontinued operations — — 497 — 497 CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 2,705 (536 ) 3,265 (3,108 ) 2,326 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from investments — 316 15 (288 ) 43 Payments for investments — (35 ) (29 ) — (64 ) Net purchases (sales) of short-term investments - non-fiduciary — 70 (9 ) — 61 Acquisition of businesses, net of cash acquired — (335 ) (608 ) 64 (879 ) Sale of businesses, net of cash sold — — 171 (64 ) 107 Capital expenditures — — (156 ) — (156 ) Cash provided by (used for) investing activities - continuing operations — 16 (616 ) (288 ) (888 ) Cash used for investing activities - discontinued operations — — (66 ) — (66 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 16 (682 ) (288 ) (954 ) CASH FLOWS FROM FINANCING ACTIVITIES Share repurchase (1,257 ) — — — (1,257 ) Advances from (to) affiliates (2,008 ) 570 (3,037 ) 4,475 — Issuance of shares for employee benefit plans (129 ) — — — (129 ) Issuance of debt 1,879 1,588 — — 3,467 Repayment of debt (845 ) (2,088 ) (12 ) — (2,945 ) Cash dividends to shareholders (345 ) — — — (345 ) Noncontrolling interests and other financing activities — — (77 ) — (77 ) Cash provided by (used for) financing activities - continuing operations (2,705 ) 70 (3,126 ) 4,475 (1,286 ) Cash used for financing activities - discontinued operations — — — — — CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES (2,705 ) 70 (3,126 ) 4,475 (1,286 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — (39 ) — (39 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS — (450 ) (582 ) 1,079 47 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR (1) — 2,083 1,242 (2,941 ) 384 CASH AND CASH EQUIVALENTS AT END OF PERIOD (2) $ — $ 1,633 $ 660 $ (1,862 ) $ 431 (1) Includes $2 million of discontinued operations at December 31, 2015. (2) Includes $5 million of discontinued operations at December 31, 2016 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Cash provided by (used for) operating activities - continuing operations $ 695 $ 464 $ 2,016 $ (1,673 ) $ 1,502 Cash provided by operating activities - discontinued operations — — 507 — 507 CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 695 464 2,523 (1,673 ) 2,009 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from investments — 27 193 — 220 Payments for investments (13 ) (47 ) (219 ) 13 (266 ) Net purchases (sales) of short-term investments - non-fiduciary — (42 ) 51 — 9 Acquisition of businesses, net of cash acquired — — (16 ) — (16 ) Sale of businesses, net of cash sold — — 205 — 205 Capital expenditures — — (200 ) — (200 ) Cash provided by (used for) investing activities - continuing operations (13 ) (62 ) 14 13 (48 ) Cash used for investing activities - discontinued operations — — (90 ) — (90 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES (13 ) (62 ) (76 ) 13 (138 ) CASH FLOWS FROM FINANCING ACTIVITIES Share repurchase (1,550 ) — — — (1,550 ) Advances from (to) affiliates 232 (326 ) (2,339 ) 2,433 — Issuance of shares for employee benefit plans (29 ) — (1 ) — (30 ) Issuance of debt 1,318 4,026 7 — 5,351 Repayment of debt (330 ) (4,746 ) (22 ) — (5,098 ) Cash dividends to shareholders (323 ) — — — (323 ) Noncontrolling interests and other financing activities — — (39 ) — (39 ) Cash provided by (used for) financing activities - continuing operations (682 ) (1,046 ) (2,394 ) 2,433 (1,689 ) Cash used for financing activities - discontinued operations — — — — — CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES (682 ) (1,046 ) (2,394 ) 2,433 (1,689 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — (172 ) — (172 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS — (644 ) (119 ) 773 10 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR (1) — 2,727 1,361 (3,714 ) 374 CASH AND CASH EQUIVALENTS AT END OF PERIOD (2) $ — $ 2,083 $ 1,242 $ (2,941 ) $ 384 (1) Includes $4 million of discontinued operations at December 31, 2014. (2) Includes $2 million of discontinued operations at December 31, 2015 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Selected quarterly financial data for the years ended December 31, 2017 and 2016 are as follows (in millions, except per share data): 1Q 2Q 3Q 4Q 2017 INCOME STATEMENT DATA Total revenue $ 2,381 $ 2,368 $ 2,340 $ 2,909 $ 9,998 Operating income 343 (118 ) 265 489 979 Net income from continuing operations 265 (43 ) 196 17 435 Income from discontinued operations, net of tax 40 821 (4 ) (29 ) 828 Net income 305 778 192 (12 ) 1,263 Less: Net income attributable to noncontrolling interests 14 9 7 7 37 Net income attributable to Aon shareholders $ 291 $ 769 $ 185 $ (19 ) $ 1,226 PER SHARE DATA Basic net income per share attributable to Aon shareholders Continuing operations $ 0.95 $ (0.20 ) $ 0.74 $ 0.04 $ 1.54 Discontinued operations 0.15 3.13 (0.02 ) (0.12 ) 3.20 Net income $ 1.10 $ 2.93 $ 0.72 $ (0.08 ) $ 4.74 Diluted net income per share attributable to Aon shareholders Continuing operations $ 0.94 $ (0.20 ) $ 0.73 $ 0.04 $ 1.53 Discontinued operations 0.15 3.13 (0.01 ) (0.11 ) 3.17 Net income $ 1.09 $ 2.93 $ 0.72 $ (0.07 ) $ 4.70 1Q 2Q 3Q 4Q 2016 INCOME STATEMENT DATA Total revenue $ 2,276 $ 2,282 $ 2,201 $ 2,650 $ 9,409 Operating income 420 387 368 463 1,638 Net income from continuing operations 312 273 284 384 1,253 Income from discontinued operations, net of tax 25 35 42 75 177 Net income 337 308 326 459 1,430 Less: Net income attributable to noncontrolling interests 12 8 7 7 34 Net income attributable to Aon shareholders $ 325 $ 300 $ 319 $ 452 $ 1,396 PER SHARE DATA Basic net income per share attributable to Aon shareholders Continuing operations $ 1.11 $ 0.99 $ 1.03 $ 1.42 $ 4.55 Discontinued operations 0.09 0.13 0.16 0.28 0.66 Net income $ 1.20 $ 1.12 $ 1.19 $ 1.70 $ 5.21 Diluted net income per share attributable to Aon shareholders Continuing operations $ 1.10 $ 0.98 $ 1.03 $ 1.40 $ 4.51 Discontinued operations 0.09 0.13 0.15 0.28 0.65 Net income $ 1.19 $ 1.11 $ 1.18 $ 1.68 $ 5.16 |
Summary of Significant Accoun27
Summary of Significant Accounting Principles and Practices (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of the accompanying Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the financial statements in future periods. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Aon plc and those entities in which the Company has a controlling financial interest. To determine if Aon holds a controlling financial interest in an entity, the Company first evaluates if it is required to apply the variable interest entity (VIE) model to the entity, otherwise, the entity is evaluated under the voting interest model. Where Aon holds rights that give it the power to direct the activities of a VIE that most significantly impact the VIE's economic performance, combined with a variable interest that gives the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, the Company has a controlling financial interest in that VIE. Aon holds a controlling financial interest in entities that are not VIEs where it, directly or indirectly, holds more than 50% of the voting rights or where it exercises control through substantive participating rights or as a general partner. |
Revenue Recognition | Revenue Recognition Revenues are recognized when they are earned and realized or realizable. The Company considers revenues to be earned and realized or realizable when all of the following four conditions are met: (1) persuasive evidence of an arrangement exists, (2) the arrangement fee is fixed or determinable, (3) delivery or performance has occurred, and (4) collectibility is reasonably assured. For brokerage commissions, revenue is typically recognized at the completion of the placement process or over a period of time based on the transfer of value to customers or as the remuneration becomes determinable, assuming all four criteria required to recognize revenue have been met. The placement process is typically considered complete on the effective date of the related policy. Commission revenues are recorded net of allowances for estimated policy cancellations, which are determined based on an evaluation of historical and current cancellation data. Fees paid by clients for consulting or other non-brokerage services are typically charged on an hourly, project or fixed-fee basis. Revenues from time-and-materials or cost-plus arrangements are recognized as services are performed, assuming all four criteria to recognize revenue have been met. Revenues from fixed-fee contracts are recognized as services are provided using a proportional-performance model or at the completion of a project based on facts and circumstances of the client arrangement. Revenues from investment income on funds held on behalf of clients are recognized as services are performed, assuming all four criteria to recognize revenue have been met. Reimbursements received for out-of-pocket expenses are recorded as a component of revenues. Revenues from health care exchange arrangements are typically recognized upon successful enrollment of participants, net of a reserve for estimated cancellations, assuming all four criteria to recognize revenue have been met. |
Share-Based Compensation Costs | Share-Based Compensation Costs Share-based payments to employees, including grants of restricted share units and performance share awards, are measured based on estimated grant date fair value. The Company recognizes compensation expense over the requisite service period for awards expected to ultimately vest. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates. |
Pension and Other Post-Retirement Benefits | Pension and Other Postretirement Benefits The Company records net period cost relating to its pension and other postretirement benefit plans based on calculations that include various actuarial assumptions, including discount rates, assumed rates of return on plan assets, inflation rates, mortality rates, compensation increases, and turnover rates. The Company reviews its actuarial assumptions on an annual basis and modifies these assumptions based on current rates and trends. The effects of gains, losses, and prior service costs and credits are amortized over future service periods or future estimated lives if the plans are frozen. The funded status of each plan, calculated as the fair value of plan assets less the benefit obligation, is reflected in the Company’s Consolidated Statements of Financial Position using a December 31 measurement date. |
Net Income per Share | Net Income per Share Basic net income per share is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding, including participating securities, which consist of unvested share awards with non-forfeitable rights to dividends. Diluted net income per share is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding, which have been adjusted for the dilutive effect of potentially issuable ordinary shares (excluding those that are considered participating securities), including certain contingently issuable shares. The diluted earnings per share calculation reflects the more dilutive effect of either (1) the two-class method that assumes that the participating securities have not been exercised, or (2) the treasury stock method. Potentially issuable shares are not included in the computation of diluted income per share if their inclusion would be antidilutive. |
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 consist of money market funds. The estimated fair value of Cash and cash equivalents and Short-term investments approximates their carrying values. |
Fiduciary Assets and Liabilities | Fiduciary Assets and Liabilities In its capacity as an insurance agent and broker, Aon collects premiums from insureds and, after deducting its commission, remits the premiums to the respective insurers. Aon also collects claims or refunds from insurers on behalf of insureds. Uncollected premiums from insureds and uncollected claims or refunds from insurers are recorded as Fiduciary assets in the Company’s Consolidated Statements of Financial Position. Unremitted insurance premiums and claims are held in a fiduciary capacity and the obligation to remit these funds is recorded as Fiduciary liabilities in the Company’s Consolidated Statements of Financial Position. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company’s allowance for doubtful accounts with respect to receivables is based on a combination of factors, including evaluation of historical write-offs, aging of balances, and other qualitative and quantitative analyses. |
Fixed Assets | Fixed Assets Fixed assets are stated at cost, less accumulated depreciation. Included in this category is internal use software, which is software that is acquired, internally-developed or modified solely to meet internal needs, with no plan to market externally. Costs related to directly obtaining, developing, or upgrading internal use software are capitalized. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are generally as follows: Asset Description Expected Life Software Lesser of the life of an associated license, or 4 to 7 years Leasehold improvements Lesser of estimated useful life or lease term, not to exceed 10 years Furniture, fixtures and equipment 4 to 10 years Computer equipment 4 to 6 years Buildings 35 years Automobiles 6 years |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of acquisition cost over the fair value of the net assets in the acquisition of a business. Goodwill is allocated to various reporting units, which are one reporting level below the operating segment. Upon disposition of a business entity, goodwill is allocated to the disposed entity based on the fair value of that entity compared to the fair value of the reporting unit in which it was included. Goodwill is not amortized, but instead is tested for impairment at least annually. The goodwill impairment test is performed at the reporting unit level. The Company initially performs a qualitative analysis to determine if it is more likely than not that the goodwill balance is impaired. If such a determination is made, then the Company will perform a two-step quantitative analysis. First, the fair value of each reporting unit is compared to its carrying value. If the fair value of the reporting unit is less than its carrying value, the Company performs a hypothetical purchase price allocation based on the reporting unit’s fair value to determine the fair value of the reporting unit’s goodwill. Any resulting difference will be a charge to Amortization and impairment of intangible assets in the Consolidated Statements of Income in the period in which the determination is made. Fair value is determined using a combination of present value techniques and market prices of comparable businesses. Intangible assets are comprised primarily of customer-related and contract-based, tradenames and technology assets. |
Derivatives | Derivatives Derivative instruments are recognized in the Consolidated Statements of Financial Position at fair value. Where the Company has entered into master netting agreements with counterparties, the derivative positions are netted by counterparty and are reported accordingly in Other assets or Other liabilities. Changes in the fair value of derivative instruments are recognized in earnings each period, unless the derivative is designated and qualifies as a cash flow or net investment hedge. The Company has historically designated the following hedging relationships for certain transactions: (i) a hedge of the change in fair value of a recognized asset or liability or firm commitment (“fair value hedge”), (ii) a hedge of the variability in cash flows from a recognized variable-rate asset or liability or forecasted transaction (“cash flow hedge”), and (iii) a hedge of the net investment in a foreign operation (“net investment hedge”). In order for a derivative to qualify for hedge accounting, the derivative must be formally designated as a fair value, cash flow, or a net investment hedge by documenting the relationship between the derivative and the hedged item. The documentation must include a description of the hedging instrument, the hedged item, the risk being hedged, Aon’s risk management objective and strategy for undertaking the hedge, the method for assessing the effectiveness of the hedge, and the method for measuring hedge ineffectiveness. Additionally, the hedge relationship must be expected to be highly effective at offsetting changes in either the fair value or cash flows of the hedged item at both the inception of the hedge and on an ongoing basis. Aon assesses the ongoing effectiveness of its hedges and measures and records hedge ineffectiveness, if any, at the end of each quarter or more frequently if facts and circumstances require. For a derivative designated as a fair value hedging instrument, the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. The effect is to reflect in earnings the extent to which the hedge is not effective in achieving offsetting changes in fair value. For a cash flow hedge that qualifies for hedge accounting, the effective portion of the change in fair value of a hedging instrument is recognized in Other comprehensive income (“OCI”) and subsequently reclassified to earnings in the same period the hedged item impacts earnings. The ineffective portion of the change in fair value is recognized immediately in earnings. For a net investment hedge, the effective portion of the change in fair value of the hedging instrument is recognized in OCI as part of the cumulative translation adjustment, while the ineffective portion is recognized immediately in earnings. Changes in the fair value of a derivative that is not designated as part of a hedging relationship (commonly referred to as an “economic hedge”) are recorded in Other income (expense) in the Consolidated Statements of Income. The Company discontinues hedge accounting prospectively when (1) the derivative expires or is sold, terminated, or exercised, (2) the qualifying criteria are no longer met, or (3) management removes the designation of the hedging relationship. |
Foreign Currency | Foreign Currency Certain of the Company’s non-U.S. operations use their respective local currency as their functional currency. These operations that do not have the U.S. dollar as their functional currency translate their financial statements at the current rates of exchange in effect at the balance sheet date and revenues and expenses using rates that approximate those in effect during the period. The resulting translation adjustments are included in net foreign currency translation adjustments within the Consolidated Statements of Shareholders’ Equity. Gains and losses from the remeasurement of monetary assets and liabilities that are denominated in a non-functional currency are included in Other income (expense) within the Company’s Consolidated Statements of Income. |
Income Taxes | Income Taxes Deferred income taxes are recognized for the effect of temporary differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted marginal tax rates and laws that are currently in effect. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in the period when the rate change is enacted. Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. Deferred tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred tax assets are future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carry-forwards, taxable income in carry-back years, and tax planning strategies that are both prudent and feasible. The Company recognizes the effect of income tax positions only if sustaining those positions is more likely than not. Tax positions that meet the more likely than not recognition threshold but are not highly certain are initially and subsequently measured based on the largest amount of benefit that is greater than 50% likely of being realized upon settlement with the taxing authority. Only information that is available at the reporting date is considered in the Company’s recognition and measurement analysis, and events or changes in facts and circumstances are accounted for in the period in which the event or change in circumstance occurs. The Company records penalties and interest related to unrecognized tax benefits in Income taxes in the Company’s Consolidated Statements of Income. |
New Accounting Pronouncements | New Accounting Pronouncements Adoption of New Accounting Standards Income Tax Accounting Implications of the Tax Cuts and Jobs Act On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted into law and the new legislation contains several key tax provisions that impact the Company, including a reduction of the corporate income tax rate to 21% effective for tax years beginning after December 31, 2017 and the Transition Tax, among others. The Company is required to recognize the effect of the tax law changes in the period of enactment, including the determination of the Transition Tax and re-measuring our U.S. deferred tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which allows registrants to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Reform Act was passed late in the fourth quarter of 2017 and ongoing guidance and accounting interpretation is expected over the next 12 months, we consider the accounting for certain items to be provisional due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. Refer to Note 10 “Income Taxes” for additional information and a detailed description of the items for which the accounting is provisional. Share-based Compensation In March 2016, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance on several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement and treated as discrete items in the reporting period. Further, excess tax benefits are required to be classified along with other income tax cash flows as an operating activity. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. An entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. The Company adopted this guidance on January 1, 2017, with the following impacts: • An increase to Deferred tax assets on the Consolidated Statement of Financial Position of $49 million through a cumulative-effect adjustment to Retained earnings for excess tax benefits not previously recognized, and • The recognition of $54 million , or $0.21 per share, income tax benefit from continuing operations related to excess tax benefits in the Consolidated Statement of Income for the year ended December 31, 2017 . Adoption of the guidance was applied prospectively on the Consolidated Statement of Cash Flows and prior period comparable information was not restated. Other elements of the guidance did not have a material impact on the Company’s Consolidated Financial Statements. Accounting Standards Issued but Not Yet Adopted Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued new accounting guidance on targeted improvements to accounting for hedging activities. The new guidance amends its hedge accounting model to enable entities to better portray their risk management activities in the financial statements. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and requires the effect of a hedging instrument to be presented in the same income statement line as the hedged item. An entity will apply the new guidance on a modified retrospective basis with a cumulative effect adjustment to accumulated other comprehensive income with a corresponding adjustment to retained earnings as of the beginning of the period of adoption. Changes to income statement presentation and financial statement disclosures will be applied prospectively. The new guidance is effective for Aon in the first quarter of 2019 and early adoption is permitted. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements and the period in which it plans to adopt. Presentation of Net Periodic Pension and Postretirement Benefit Costs In March 2017, the FASB issued new accounting guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost and net periodic postretirement benefit cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Additionally, only the service cost component is eligible for capitalization, when applicable. An entity will apply the new guidance retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the Consolidated Statement of Income and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension costs and net periodic postretirement benefit cost in assets. The new guidance allows a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The Company does not expect to apply the practical expedient upon adoption of the guidance. The new guidance is effective for Aon in the first quarter of 2018. The adoption of this guidance will have no impact on the net income of the Company. Upon adoption of the guidance, the Company expects the presentation of results to reflect a change in operating income offset by an equal and offsetting change in other income (expense) for each period, as follows: Years ended December 31 2017 2016 As Reported Adjustments (1) As Adjusted As Reported Adjustments (1) As Adjusted Operating income (2) 979 86 1,065 1,638 173 1,811 Other income (expense) (39 ) (86 ) (125 ) 36 (173 ) (137 ) (1) The years ended December 31, 2017 and 2016 , include non-cash settlement expenses of $128 million and $220 million , respectively, related to certain pension plans. Refer to Note 12 “Employee Benefits” for further information. (2) Reclassification from operating income is recorded in Compensation and benefits. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued new accounting guidance on simplifying the test for goodwill impairment. Currently the standard requires an entity to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. The new guidance removes Step 2. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. An entity will apply the new guidance on a prospective basis. The new guidance is effective for Aon in the first quarter of 2020 and early adoption is permitted for annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact and period of adoption that the standard will have on the Consolidated Financial Statements. Income Tax Consequences of Intercompany Transactions In October 2016, the FASB issued new accounting guidance on the income tax consequences of intra-entity asset transfers other than inventory. The guidance will require that the seller and buyer recognize the consolidated current and deferred income tax consequences of a transaction in the period the transaction occurs rather than deferring to a future period and recognizing those consequences when the asset has been sold to an outside party or otherwise recovered through use (i.e. depreciated, amortized, or impaired). An entity will apply the new guidance on a modified retrospective basis with a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The new guidance is effective for Aon in the first quarter of 2018. Upon the adoption of this guidance on January 1, 2018, the Company expects to recognize adjustments to Deferred tax assets, Deferred tax liabilities, and Other non-current assets on the Consolidated Statement of Financial Position through a cumulative adjustment to Retained earnings of approximately $ 15 million . Statement of Cash Flows In August 2016, the FASB issued new accounting guidance on the classification of certain cash receipts and cash payments. Under the new guidance, an entity will no longer have discretion to choose the classification for a number of transactions, including contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. The new standard will be effective for the Company in the first quarter of 2018, with early application permitted. An entity will apply the new guidance through retrospective adjustment to all periods presented. The retrospective approach includes a practical expedient that entities may apply should retrospective application be impracticable; in this case, the amendments for these issues may be applied prospectively as of the earliest date practicable. The guidance will not have a material impact on the Company’s Consolidated Statements of Cash Flows. Credit Losses In June 2016, the FASB issued new accounting guidance on the measurement of credit losses on financial instruments. The new guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. An entity will apply the new guidance through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The guidance is effective for Aon in the first quarter of 2020 and early adoption is permitted beginning in the first quarter of 2019. Aon is currently evaluating the impact that the standard will have on its Consolidated Financial Statements, as well as the method of transition and period of adoption. Leases In February 2016, the FASB issued new accounting guidance on leases, which requires lessees to recognize assets and liabilities for most leases. Under the new guidance, a lessee should recognize in the Consolidated Statement of Financial Position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current U.S. GAAP standards. The new standard will be effective for the Company in the first quarter of 2019, with early application permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The Company is currently evaluating the period of adoption. A preliminary assessment to determine the impacts of the new accounting standard has been performed and it is expected to have a significant impact on the Company’s Consolidated Statements of Financial Position and related disclosures. The Company is also currently implementing accounting and operational processes which will be impacted by the new standard. Financial Assets and Liabilities In January 2016, the FASB issued new accounting guidance on recognition and measurement of financial assets and financial liabilities. The amendments in the new guidance make targeted improvements, which include the requirement to measure equity investments with readily determinable fair values at fair value through net income, simplification of the impairment assessment for equity investments without readily determinable fair values, adjustments to existing and additional disclosure requirements, and additional tax considerations. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values, including disclosure requirements, should be applied prospectively to equity investments that exist as of the date of adoption of the guidance. The guidance is effective for the Company in the first quarter of 2018 and early adoption is permitted. The adoption of this guidance on January 1, 2018 is not expected to have a significant impact on the Company’s Consolidated Financial Statements. Revenue Recognition In May 2014, the FASB issued a new accounting standard on revenue from contracts with customers, which, when effective, will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principal of the standard 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 standard also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments, changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The standard is effective for Aon in the first quarter of 2018. Two methods of transition are permitted upon adoption: full retrospective and modified retrospective. The Company will adopt this standard in the first quarter of 2018 using a modified retrospective adoption approach. Under this approach, prior periods will not be restated. Rather, revenues and other disclosures for prior periods will be provided in the notes to the financial statements as previously reported under the current revenue standard, and the cumulative effect of initially applying the new standard will be recognized as an increase to retained earnings as of January 1, 2018. The Company estimates this adjustment to be approximately $400 - 600 million . The Company has assessed the impacts of the new accounting standard and has implemented accounting and operational processes and controls to ensure compliance with the new standard. The most significant impacts of the new standard to the Company are expected to be as follows: • The Company currently recognizes revenue either at a point in time or over a period of time based on the transfer of value to customers or as the remuneration becomes determinable. Under the new standard, the revenue related to certain brokerage services recognized over a period of time will be recognized on the effective date of the associated policies when control of the policy transfers to the customer. As a result, revenue from these arrangements will be recognized in earlier periods under the new standard in comparison to the current guidance and will change the timing and amount of revenue recognized for annual and interim periods. This change is anticipated to result in a significant shift in timing of interim revenue for Reinsurance Solutions and to a lesser extent, certain other brokerage services. • The new standard provides guidance on accounting for certain revenue-related costs including when to capitalize costs associated with obtaining and fulfilling a contract. The majority of these costs are currently expensed as incurred under existing U.S. GAAP. Assets recognized for the costs to obtain a contract, which includes certain sales commissions, will be amortized on a systematic basis that is consistent with the transfer of the services to which the asset relates, considering anticipated renewals when applicable. For situations where the renewal period is one year or less and renewal costs are commensurate with the initial contract, the Company plans to apply a practical expedient and recognize the costs of obtaining a contract as an expense when incurred. Assets recognized as costs to fulfill a contract, which includes internal costs related to pre-placement broking activities, as well as other costs, will be amortized on a systematic basis that is consistent with the transfer of the services to which the asset relates, which is generally expected to be less than one year. |
Summary of Significant Accoun28
Summary of Significant Accounting Principles and Practices (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of assets | Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are generally as follows: Asset Description Expected Life Software Lesser of the life of an associated license, or 4 to 7 years Leasehold improvements Lesser of estimated useful life or lease term, not to exceed 10 years Furniture, fixtures and equipment 4 to 10 years Computer equipment 4 to 6 years Buildings 35 years Automobiles 6 years |
Schedule of other intangible assets by asset class | Amortization basis and estimated useful lives by intangible asset type are generally as follows: Intangible Asset Description Amortization Basis Expected Life Customer related and contract based In line with underlying cash flows 7 to 20 years Tradenames Straight-line 1 to 3 years Technology Straight-line 5 to 7 years Other intangible assets by asset class are as follows (in millions): As of December 31 2017 2016 Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Customer related and contract based 2,550 1,415 1,135 2,023 1,198 825 Tradenames (1) 1,047 533 514 1,027 7 1,020 Technology and other (1) 416 332 84 347 302 45 Total $ 4,013 $ 2,280 $ 1,733 $ 3,397 $ 1,507 $ 1,890 (1) Prior to May 1, 2017, finite lived tradenames were classified within Technology and other. As of December 31, 2016, $29 million of gross carrying amount and $7 million of accumulated amortization related to finite-lived tradenames were reclassified from Technology and other to Tradenames. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Upon adoption of the guidance, the Company expects the presentation of results to reflect a change in operating income offset by an equal and offsetting change in other income (expense) for each period, as follows: Years ended December 31 2017 2016 As Reported Adjustments (1) As Adjusted As Reported Adjustments (1) As Adjusted Operating income (2) 979 86 1,065 1,638 173 1,811 Other income (expense) (39 ) (86 ) (125 ) 36 (173 ) (137 ) (1) The years ended December 31, 2017 and 2016 , include non-cash settlement expenses of $128 million and $220 million , respectively, related to certain pension plans. Refer to Note 12 “Employee Benefits” for further information. (2) Reclassification from operating income is recorded in Compensation and benefits. |
Other Financial Data (Tables)
Other Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Financial Data [Abstract] | |
Other income (Expense) | Other income (expense) consists of the following (in millions): Years ended December 31 2017 2016 2015 Foreign currency remeasurement gain (loss) $ (37 ) $ (2 ) $ 30 Net gain (loss) on disposal of businesses (16 ) 39 82 Equity earnings 12 13 13 Income (loss) on financial instruments 2 (14 ) (24 ) Other — — (1 ) Total $ (39 ) $ 36 $ 100 |
Schedule of Allowance for Doubtful Accounts | An analysis of the allowance for doubtful accounts is as follows (in millions): 2017 2016 2015 Balance at January 1 $ 56 $ 58 $ 72 Provision charged to Other general expenses 18 10 12 Accounts written off, net of recoveries (18 ) (15 ) (32 ) Foreign currency translation 3 3 6 Balance at December 31 $ 59 $ 56 $ 58 |
Schedule of Other Current Assets | The components of Other current assets are as follows (in millions): As of December 31 2017 2016 Taxes receivable $ 114 $ 100 Prepaid expenses 126 102 Receivables from the Divested Business (1) 28 — Other 21 45 Total $ 289 $ 247 (1) Refer to Note 4 “Discontinued Operations” for additional information. |
Components of Fixed assets, net | The components of Fixed assets, net are as follows (in millions): As of December 31 2017 2016 Software $ 680 $ 677 Leasehold improvements 349 369 Computer equipment 295 258 Furniture, fixtures and equipment 240 252 Construction in progress 79 75 Other 90 115 Fixed assets, gross 1,733 1,746 Less: Accumulated depreciation 1,169 1,196 Fixed assets, net $ 564 $ 550 |
Schedule of Other Non-current Assets | The components of Other non-current assets are as follows (in millions): As of December 31 2017 2016 Investments $ 57 $ 119 Taxes receivable 84 82 Other 166 159 Total $ 307 $ 360 |
Schedule of Other Current Liabilities | The components of Other current liabilities are as follows (in millions): As of December 31 2017 2016 Deferred revenue $ 311 $ 199 Taxes payable (1) 139 77 Other 420 380 Total $ 870 $ 656 (1) Includes a provisional estimate of $42 million for the current portion of the Transition Tax. Refer to Note 10 “Income Taxes” for further information. |
Schedule of Other Non-current Liabilities | The components of Other non-current liabilities are as follows (in millions): 2017 2016 Taxes payable (1) $ 529 $ 288 Leases 153 136 Compensation and benefits 67 56 Deferred revenue 49 49 Other 304 190 Total $ 1,102 $ 719 (1) Includes a provisional estimate of $222 million for the Transition Tax. Refer to Note 10 “Income Taxes” for further information. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table presents the aggregate carrying amounts of the classes of assets and liabilities presented as discontinued operations within the Company’s Consolidated Statements of Financial Position (in millions): December 31, 2017 (1) December 31, ASSETS Cash and cash equivalents $ — $ 5 Receivables, net — 483 Fiduciary assets — 526 Goodwill — 1,337 Intangible assets, net — 333 Fixed assets, net — 215 Other assets — 295 TOTAL ASSETS $ — $ 3,194 LIABILITIES Accounts payable and accrued liabilities $ — $ 197 Fiduciary liabilities — 526 Other liabilities — 356 TOTAL LIABILITIES $ — $ 1,079 (1) All assets and liabilities associated with the Divested Business were sold on May 1, 2017. The following table presents the financial results of the Divested Business (in millions): Years ended December 31 2017 2016 2015 Revenue Total revenue $ 698 $ 2,218 $ 2,202 Expenses Total operating expenses 656 1,950 1,941 Operating Income from discontinued operations 42 268 261 Other income 10 — — Income from discontinued operations before income taxes 52 268 261 Income taxes 3 91 92 Income from discontinued operations excluding gain, net of tax 49 177 169 Gain on sale of discontinued operations, net of tax 779 — — Income from discontinued operations, net of tax $ 828 $ 177 $ 169 |
Restructuring Restructuring and
Restructuring Restructuring and Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes restructuring and separation costs by type that have been incurred through December 31, 2017 and are estimated to be incurred through the end of the Restructuring Plan (in millions). Estimated costs may be revised in future periods as these assumptions are updated: Year Ended December 31, 2017 Estimated Remaining Costs Estimated Total Cost (1) Workforce reduction $ 299 $ 151 $ 450 Technology rationalization (2) 33 97 130 Lease consolidation (2) 8 77 85 Asset impairments 26 24 50 Other costs associated with restructuring and separation (2) (3) 131 179 310 Total restructuring and related expenses $ 497 $ 528 $ 1,025 (1) Actual costs, when incurred, may vary due to changes in the assumptions built into the Restructuring Plan. Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives. (2) Contract termination costs included within Technology rationalization for the year ended December 31, 2017 were $1 million . Contract termination costs included within Lease consolidations for the year ended December 31, 2017 were $8 million . Contract termination costs included within Other costs associated with restructuring and separation were $3 million for the year ended December 31, 2017 . Total estimated contract termination costs to be incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs associated with restructuring and separation, respectively, are $10 million , $80 million , and $10 million . (3) Other costs associated with the Restructuring Plan include primarily those to separate the Divested Business, as well as moving costs and consulting and legal fees. These costs are generally recognized when incurred. |
Schedule of Restructuring Reserve by Type of Cost | The changes in the Company’s liabilities for the Restructuring Plan as of December 31, 2017 are as follows (in millions): Restructuring Plan Balance at December 31, 2016 $ — Expensed 452 Cash payments (280 ) Foreign currency translation and other 14 Balance at December 31, 2017 $ 186 |
Acquisitions and Dispositions32
Acquisitions and Dispositions of Businesses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations and Discontinued Operations and Disposal Groups [Abstract] | |
Consideration transferred and preliminary value of intangible assets | The following table includes the preliminary fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisitions (in millions): For the year ended December 31, 2017 Cash $ 1,136 Deferred and contingent consideration 63 Aggregate consideration transferred $ 1,199 Assets acquired: Cash and cash equivalents $ 108 Receivables, net 47 Goodwill 619 Intangible assets, net 567 Fixed assets, net 18 Other assets 200 Total assets acquired 1,559 Liabilities assumed: Current liabilities 230 Other liabilities 130 Total liabilities assumed 360 Net assets acquired $ 1,199 Intangible assets are primarily customer-related and contract-based assets. Those intangible assets acquired as part of a business acquisition in 2017 had a weighted average useful economic life of 16 years . Acquisition related costs incurred and recognized within Other general expenses for the year ended December 31, 2017 were $ 13 million . Total revenue for these acquisitions included in the Company’s Consolidated Statement of Income for the year ended December 31, 2017 was approximately $ 50 million . The results of operations of these acquisitions are included in the Consolidated Financial Statements as of the respective acquisition dates. 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. |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 for the years ended December 31, 2017 and 2016 , respectively, are as follows (in millions): Balance as of January 1, 2016 $ 7,068 Goodwill related to current year acquisitions 642 Goodwill related to disposals (34 ) Goodwill related to prior year acquisitions 4 Foreign currency translation (270 ) Balance as of December 31, 2016 $ 7,410 Goodwill related to current year acquisitions 619 Goodwill related to disposals (5 ) Goodwill related to prior year acquisitions (13 ) Foreign currency translation 347 Balance as of December 31, 2017 $ 8,358 |
Schedule of other intangible assets by asset class | Amortization basis and estimated useful lives by intangible asset type are generally as follows: Intangible Asset Description Amortization Basis Expected Life Customer related and contract based In line with underlying cash flows 7 to 20 years Tradenames Straight-line 1 to 3 years Technology Straight-line 5 to 7 years Other intangible assets by asset class are as follows (in millions): As of December 31 2017 2016 Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization and Impairment Net Carrying Amount Customer related and contract based 2,550 1,415 1,135 2,023 1,198 825 Tradenames (1) 1,047 533 514 1,027 7 1,020 Technology and other (1) 416 332 84 347 302 45 Total $ 4,013 $ 2,280 $ 1,733 $ 3,397 $ 1,507 $ 1,890 (1) Prior to May 1, 2017, finite lived tradenames were classified within Technology and other. As of December 31, 2016, $29 million of gross carrying amount and $7 million of accumulated amortization related to finite-lived tradenames were reclassified from Technology and other to Tradenames. |
Schedule of estimated future amortization expense on intangible assets | The estimated future amortization for finite-lived intangible assets as of December 31, 2017 is as follows (in millions): 2018 $ 410 2019 420 2020 253 2021 140 2022 98 Thereafter 412 Total $ 1,733 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of outstanding debt | The following is a summary of outstanding debt (in millions): As of December 31 2017 2016 3.875% Senior Notes due December 2025 $ 745 $ 744 5.00% Senior Notes due September 2020 598 598 3.50% Senior Notes due June 2024 595 594 4.75% Senior Notes due May 2045 592 592 2.875% Senior Notes due May 2026 (EUR 500M) 587 516 4.60% Senior Notes due June 2044 544 543 8.205% Junior Subordinated Notes due January 2027 521 521 2.80% Senior Notes due March 2021 398 397 4.00% Senior Notes due November 2023 348 347 6.25% Senior Notes due September 2040 296 295 4.76% Senior Notes due March 2018 (CAD 375M) 296 277 4.45% Senior Notes due May 2043 246 246 4.25% Senior Notes due December 2042 197 197 Commercial paper — 329 Other 3 9 Total debt 5,966 6,205 Less: Short-term and current portion of long-term debt 299 336 Total long-term debt $ 5,667 $ 5,869 |
Repayments of long-term debt | Repayments of total debt are as follows (in millions): 2018 $ 299 2019 — 2020 600 2021 400 2022 — Thereafter 4,770 Total Repayments 6,069 Unamortized discount, premium, and debt issuance cost (103 ) Total Debt $ 5,966 |
Schedule of Commercial Paper | The weighted average commercial paper outstanding and its related interest rates are as follows: Years ended December 31 2017 2016 Weighted average commercial paper outstanding $ 170 $ 265 Weighted average interest rate of commercial paper outstanding 0.18 % 0.22 % Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Company’s Consolidated Statements of Financial Position, is as follows (in millions): As of December 31, 2017 December 31, 2016 Commercial paper outstanding $ — $ 329 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases, Operating [Abstract] | |
Rental expenses for operating leases | Rental expenses (including amounts applicable to taxes, insurance, and maintenance) for operating leases are as follows (in millions): Years Ended December 31 2017 2016 2015 Rental expense $ 377 $ 358 $ 413 Sub lease rental income (57 ) (52 ) (73 ) Net rental expense $ 320 $ 306 $ 340 |
Future minimum rental payments under operating leases for continuing operations that have initial or remaining noncancelable lease terms in excess of one year, net of sublease rental income | At December 31, 2017 , future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows (in millions): Year Ended December 31, 2017 Gross rental commitments Rentals from subleases Net rental commitments 2018 $ 318 $ (41 ) $ 277 2019 291 (42 ) 249 2020 249 (35 ) 214 2021 226 (34 ) 192 2022 205 (34 ) 171 Thereafter 631 (18 ) 613 Total minimum payments required $ 1,920 $ (204 ) $ 1,716 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income from continuing operations before income tax | Income before income tax from continuing operations and the provision for income tax from continuing operations consist of the following (in millions): Years ended December 31 2017 2016 2015 Income before income taxes: U.K. $ (420 ) $ (201 ) $ 144 U.S. (765 ) (329 ) (283 ) Other 1,870 1,931 1,567 Total $ 685 $ 1,401 $ 1,428 Income tax expense (benefit): Current: U.K. $ 1 $ (54 ) $ 42 U.S. federal 48 88 22 U.S. state and local 18 7 32 Other 201 207 245 Total current tax expense $ 268 $ 248 $ 341 Deferred tax expense (benefit): U.K. $ (5 ) $ 59 $ (39 ) U.S. federal 12 (110 ) (94 ) U.S. state and local (35 ) (9 ) (4 ) Other 10 (40 ) (29 ) Total deferred tax benefit $ (18 ) $ (100 ) $ (166 ) Total income tax expense $ 250 $ 148 $ 175 |
Reconciliation of the income tax provisions based on the U.S. statutory corporate tax rate to the provisions reflected in the Consolidated Financial Statements | The reconciliation to the provisions from continuing operations reflected in the Consolidated Financial Statements is as follows: Years ended December 31 2017 2016 2015 Statutory tax rate 19.3% 20.0% 20.3% U.S. state income taxes, net of U.S. federal benefit (1.5) 0.4 0.1 Taxes on international operations (1) (30.3) (12.2) (8.8) Nondeductible expenses 3.4 1.4 2.5 Adjustments to prior year tax requirements 2.0 (1.2) (1.5) Adjustments to valuation allowances (1.8) (2.2) (1.4) Change in uncertain tax positions 1.6 3.2 1.4 Excess tax benefits related to shared based compensation (2) (8.0) — — U.S. Tax Reform impact (3) 51.2 — — Other — net 0.6 1.2 (0.3) Effective tax rate 36.5% 10.6% 12.3% (1) The Company determines the adjustment for taxes on international operations based on the difference between the statutory tax rate applicable to earnings in each foreign jurisdiction and the enacted rate of 19.3% , 20.0% and 20.3% at December 31, 2017 , 2016 , and 2015 , respectively. The benefit to the Company’s effective income tax rate from taxes on international operations relates to benefits from lower-taxed global operations, primarily due to the use of global funding structures. Restructuring charges and the impairment and amortization of tradenames, primarily in the U.S., were the significant drivers of the change from 2016 to 2017. (2) With the adoption of ASU 2016-09 in 2017, excess tax benefits and deficiencies from share-based payment transactions are recognized as income tax expense or benefit in the Company’s Consolidated Statements of Income. Refer to Note 2 “Summary of Significant Accounting Principles and Practices” for additional details. (3) Due to the Tax Reform Act, provisional estimates were accrued as of December 31, 2017 for the Transition Tax and the re-measurement of U.S. deferred tax assets and liabilities from 35% to 21%. |
Components of Aon's deferred tax assets and liabilities | The components of the Company’s deferred tax assets and liabilities are as follows (in millions): As of December 31 2017 2016 Deferred tax assets: Employee benefit plans $ 424 $ 661 Net operating/capital loss and tax credit carryforwards 362 398 Other accrued expenses 65 102 Investment basis differences 35 48 Deferred revenue 20 57 Tradename Liability 12 — Lease and Service Guarantees 6 — Brokerage fee arrangements 4 66 Accrued Interest 1 166 Other 48 60 Total 977 1,558 Valuation allowance on deferred tax assets (136 ) (130 ) Total $ 841 $ 1,428 Deferred tax liabilities: Intangibles and property, plant and equipment $ (436 ) $ (978 ) Unremitted earnings (39 ) (29 ) Deferred costs (32 ) (20 ) Unrealized foreign exchange gains (22 ) (26 ) Other accrued expenses (12 ) (101 ) Other (38 ) (50 ) Total $ (579 ) $ (1,204 ) Net deferred tax asset $ 262 $ 224 |
Deferred income taxes (assets and liabilities netted by jurisdiction) as classified in the Consolidated Statements of Financial Position | Deferred income taxes (assets and liabilities have been netted by jurisdiction) have been classified in the Consolidated Statements of Financial Position as follows (in millions): As of December 31 2017 2016 Deferred tax assets — non-current $ 389 $ 325 Deferred tax liabilities — non-current (127 ) (101 ) Net deferred tax asset $ 262 $ 224 |
Summary of operating and capital loss carryforwards | The Company had the following operating and capital loss carryforwards (in millions): As of December 31 2017 2016 U.K. Operating loss carryforwards $ 675 $ 325 Capital loss carryforwards 415 294 U.S. Federal operating loss carryforwards $ 36 $ 193 State operating loss carryforwards 412 474 Other Non-US Operating loss carryforwards $ 392 $ 350 Capital loss carryforwards 232 218 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | The following is a reconciliation of the Company’s beginning and ending amount of uncertain tax positions (in millions): 2017 2016 Balance at January 1 $ 278 $ 238 Additions based on tax positions related to the current year 25 36 Additions for tax positions of prior years 12 20 Reductions for tax positions of prior years (26 ) (12 ) Settlements (6 ) — Business combinations — 2 Lapse of statute of limitations (7 ) (5 ) Foreign currency translation 4 (1 ) Balance at December 31 $ 280 $ 278 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of components of weighted average number of shares outstanding | Weighted average shares outstanding are as follows (in millions): Years ended December 31 2017 2016 2015 Basic weighted-average ordinary shares outstanding 258.5 268.1 280.8 Dilutive effect of potentially issuable shares 2.2 2.2 3.0 Diluted weighted-average ordinary shares outstanding 260.7 270.3 283.8 |
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 Financial Instruments (1) Foreign Currency Translation Adjustments Postretirement Benefit Obligation (2) Total Balance at January 1, 2015 $ (17 ) $ (335 ) $ (2,782 ) $ (3,134 ) Other comprehensive income (loss) before reclassifications: Other comprehensive income (loss) before reclassifications (4 ) (467 ) 82 (389 ) Tax benefit (expense) 1 31 (9 ) 23 Other comprehensive income (loss) before reclassifications, net (3 ) (436 ) 73 (366 ) Amounts reclassified from accumulated other comprehensive income (loss): Amounts reclassified from accumulated other comprehensive income (loss) 11 — 117 128 Tax benefit (expense) (16 ) — (35 ) (51 ) Amounts reclassified from accumulated other comprehensive income (loss), net (5 ) — 82 77 Net current period other comprehensive income (loss) (8 ) (436 ) 155 (289 ) Balance at December 31, 2015 (25 ) (771 ) (2,627 ) (3,423 ) Other comprehensive income (loss) before reclassifications: Other comprehensive income (loss) before reclassifications (25 ) (490 ) (276 ) (791 ) Tax benefit (expense) 6 (3 ) 74 77 Other comprehensive income (loss) before reclassifications, net (19 ) (493 ) (202 ) (714 ) Amounts reclassified from accumulated other comprehensive income (loss): Amounts reclassified from accumulated other comprehensive income (loss) 10 — 322 332 Tax benefit (expense) (3 ) — (104 ) (107 ) Amounts reclassified from accumulated other comprehensive income (loss), net 7 — 218 225 Net current period other comprehensive income (loss) (12 ) (493 ) 16 (489 ) Balance at December 31, 2016 (37 ) (1,264 ) (2,611 ) (3,912 ) Other comprehensive income (loss) before reclassifications: Other comprehensive income (loss) before reclassifications 18 397 (220 ) 195 Tax benefit (expense) (3 ) (5 ) 55 47 Other comprehensive income (loss) before reclassifications, net 15 392 (165 ) 242 Amounts reclassified from accumulated other comprehensive income (loss): Amounts reclassified from accumulated other comprehensive income (loss) (2 ) (7 ) 236 227 Tax benefit (expense) (1 ) — (52 ) (53 ) Amounts reclassified from accumulated other comprehensive income (loss), net (3 ) (7 ) 184 174 Net current period other comprehensive income (loss) 12 385 19 416 Balance at December 31, 2017 $ (25 ) $ (879 ) $ (2,592 ) $ (3,496 ) (1) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense), Other general expenses, and Compensation and benefits. See Note 14 “Derivatives and Hedging” for additional information regarding the Company’s derivative and hedging activity. (2) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Compensation and benefits |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Expense recognized for defined contribution savings plans, included in compensation and benefits and discontinued operations in the consolidated statements of income | The expense recognized for these plans is included in Compensation and benefits in the Consolidated Statements of Income. The expense for the significant plans in the U.S., U.K., Netherlands and Canada is as follows (in millions): Years ended December 31 2017 2016 2015 U.S. $ 105 $ 121 $ 100 U.K. 43 43 42 Netherlands and Canada 25 27 24 Total $ 173 $ 191 $ 166 |
Reconciliation of the changes in the benefit obligations and fair value of assets and a statement of the funded status | The following table provides an overview of the accumulated projected benefit obligation, fair value of plan assets, funded status and net amount recognized as of December 31, 2017 and 2016 for the Company’s other significant postretirement benefit plans located in the U.S. and Canada (in millions): 2017 2016 Accumulated projected benefit obligation $ 99 $ 110 Fair value of plan assets 17 18 Funded status (82 ) (92 ) Unrecognized prior-service credit (1 ) (3 ) Unrecognized (gain) loss (3 ) 10 Net amount recognized $ (86 ) $ (85 ) The following tables provide a reconciliation of the changes in the projected benefit obligations and fair value of assets for the years ended December 31, 2017 and 2016 and a statement of the funded status as of December 31, 2017 and 2016 , for the material U.K., U.S., and other major plans, which are located in the Netherlands, and Canada. These plans represent approximately 92% of the Company’s projected benefit obligations. U.K. U.S. Other (millions) 2017 2016 2017 2016 2017 2016 Change in projected benefit obligation At January 1 $ 4,874 $ 4,985 $ 2,902 $ 3,154 $ 1,227 $ 1,177 Service cost — — — — — — Interest cost 123 158 96 111 26 29 Plan amendment — (20 ) — — — — Settlements (496 ) (159 ) — (281 ) — — Actuarial loss (gain) (22 ) 32 127 (43 ) 16 (7 ) Benefit payments (146 ) (242 ) (152 ) (139 ) (39 ) (39 ) Change in discount rate 122 1,079 182 100 33 100 Foreign currency impact 438 (959 ) — — 138 (33 ) At December 31 $ 4,893 $ 4,874 $ 3,155 $ 2,902 $ 1,401 $ 1,227 Accumulated benefit obligation at end of year $ 4,893 $ 4,874 $ 3,155 $ 2,902 $ 1,373 $ 1,191 Change in fair value of plan assets At January 1 $ 5,675 $ 5,903 $ 1,683 $ 1,951 $ 1,076 $ 1,019 Actual return on plan assets 274 1,233 308 116 70 111 Employer contributions 86 67 119 36 21 20 Settlements (496 ) (159 ) — (281 ) — — Benefit payments (146 ) (242 ) (152 ) (139 ) (39 ) (39 ) Foreign currency impact 513 (1,127 ) — — 128 (35 ) At December 31 $ 5,906 $ 5,675 $ 1,958 $ 1,683 $ 1,256 $ 1,076 Market related value at end of year $ 5,906 $ 5,675 $ 1,926 $ 1,819 $ 1,256 $ 1,076 Amount recognized in Statement of Financial Position at December 31 Funded status $ 1,013 $ 801 $ (1,197 ) $ (1,219 ) $ (145 ) $ (151 ) Unrecognized prior-service cost 19 19 5 6 (7 ) (6 ) Unrecognized loss 1,217 1,237 1,701 1,612 459 400 Net amount recognized $ 2,249 $ 2,057 $ 509 $ 399 $ 307 $ 243 |
Amounts recognized in the Consolidated Statements of Financial Position | Amounts recognized in the Consolidated Statements of Financial Position consist of (in millions): U.K. U.S. Other 2017 2016 2017 2016 2017 2016 Prepaid benefit cost (1) $ 1,034 $ 836 $ — $ — $ — $ — Accrued benefit liability - current (2) (1 ) (1 ) (43 ) (44 ) (5 ) (5 ) Accrued benefit liability - non-current (3) (20 ) (34 ) (1,154 ) (1,175 ) (140 ) (146 ) Accumulated other comprehensive loss 1,236 1,256 1,706 1,618 452 394 Net amount recognized $ 2,249 $ 2,057 $ 509 $ 399 $ 307 $ 243 (1) Included in Prepaid pension (2) Included in Other current liabilities (3) Included in Pension, other postretirement, and postemployment liabilities |
Amounts recognized in Accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost | Amounts recognized in Accumulated other comprehensive loss (income) that have not yet been recognized as components of net periodic benefit cost at December 31, 2017 and 2016 consist of (in millions): U.K. U.S. Other 2017 2016 2017 2016 2017 2016 Net loss $ 1,217 $ 1,237 $ 1,701 $ 1,612 $ 459 $ 400 Prior service cost (income) 19 19 5 6 (7 ) (6 ) Total $ 1,236 $ 1,256 $ 1,706 $ 1,618 $ 452 $ 394 |
Components of net periodic benefit cost for the pension plans | The following table provides the components of net periodic benefit (income) cost for the plans (in millions): U.K. U.S. Other 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ — $ — $ 1 $ — $ — $ — $ — $ — $ — Interest cost 123 158 198 96 111 131 26 29 33 Expected return on plan assets, net of administration expenses (199 ) (243 ) (307 ) (140 ) (156 ) (154 ) (47 ) (48 ) (50 ) Amortization of prior-service cost 1 2 1 2 2 2 — — — Amortization of net actuarial loss 31 31 41 50 50 54 11 10 11 Net periodic benefit (income) cost (44 ) (52 ) (66 ) 8 7 33 (10 ) (9 ) (6 ) Settlement expense 125 61 — — 158 — — — — Total net periodic benefit cost (income) $ 81 $ 9 $ (66 ) $ 8 $ 165 $ 33 $ (10 ) $ (9 ) $ (6 ) |
Weighted-average assumptions used to determine future benefit obligations and net periodic benefit cost | The weighted-average assumptions used to determine benefit obligations are as follows: U.K. U.S. (1) Other 2017 2016 2017 2016 2017 2016 Discount rate 2.63% 2.77% 3.27 - 3.61% 3.53 - 4.11% 1.78 - 3.39% 1.85 - 3.81% Rate of compensation increase 3.70 - 4.20% 3.70 - 4.20% N/A N/A 1.00 - 3.00% 1.00 - 3.50% Underlying price inflation 1.87% 1.83% N/A N/A 2.00% 2.00 - 2.50% (1) U.S. pension plans are frozen and therefore not impacted by compensation increases or price inflation. The weighted-average assumptions used to determine the net periodic benefit cost are as follows: U.K. U.S. Other 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 2.77% 3.96% 3.70% 3.53 - 4.11% 3.69 - 4.43% 3.37 - 4.08% 1.85 - 3.81% 2.43 - 3.96% 2.03 - 3.91% Expected return on plan assets, net of administration expenses 3.36% 4.55% 5.09% 7.88% 7.81% 7.96% 2.68 - 5.15% 3.47 - 4.95% 3.99 - 5.21% Rate of compensation increase 3.70 - 4.20% 3.63 - 4.13% 3.55 - 4.05% N/A N/A N/A 1.00 - 3.50% 2.00 - 3.50% 2.25 - 3.50% |
Fair values of pension plan assets | The fair values of the Company’s major U.K. pension plan assets at December 31, 2017 and December 31, 2016 , by asset category, are as follows (in millions): Fair Value Measurements Using Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents (1) $ 209 $ 209 $ — $ — Equity investments: Pooled funds: Global (2) 401 — — — Europe (2) 6 — — — Fixed income investments: (3) Derivatives (4) (771 ) — (771 ) — Fixed income securities (5) 2,787 2,362 425 — Annuities 1,909 — — 1,909 Pooled funds: Derivatives (2) 57 — — — Fixed income securities (2) 251 — — — Other investments: Real estate (2) (6) 146 — — — Alternative investments (2) (7) 911 — — — Total $ 5,906 $ 2,571 $ (346 ) $ 1,909 (1) Consists of cash and institutional short-term investment funds. (2) Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. (3) Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles. (4) Consists of equity securities and equity derivatives, including repurchase agreements. (5) Consists of corporate and government bonds. (6) Consists of property funds and trusts holding direct real estate investments. (7) Consists of limited partnerships, private equity, and hedge funds. Fair Value Measurements Using Balance at December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents (1) $ 86 $ 86 $ — $ — Equity investments: Global 135 135 — — Pooled funds: Global (2) 365 — — — Europe (2) 18 — — — Fixed income investments: (3) Derivatives (4) 10 — 10 — Fixed income securities (5) 2,129 1,726 403 — Annuities 1,773 — — 1,773 Pooled funds: Derivatives (2) 62 Fixed income securities (2) 223 — — — Other investments: Real estate (2) (6) 101 — — — Alternative investments (2) (7) 773 — — — Total $ 5,675 $ 1,947 $ 413 $ 1,773 (1) Consists of cash and institutional short-term investment funds. (2) Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. (3) Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles. (4) Consists of equity securities and equity derivatives. (5) Consists of corporate and government bonds and fixed income derivatives. (6) Consists of property funds and trusts holding direct real estate investments. (7) Consists of limited partnerships, private equity, and hedge funds. The fair values of the Company’s other major pension plan assets at December 31, 2017 and December 31, 2016 , by asset category, are as follows (in millions): Fair Value Measurements Using Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 11 $ 11 $ — $ — Equity investments: Pooled funds: Global (1) 370 — — — North America (1) 26 — — — Fixed income investments: Fixed income securities (2) 211 — 211 — Derivatives (2) 40 — 40 — Pooled funds: Fixed income securities (1) 566 — — — Other investments: Alternative investments (1) (3) 26 — — — Pooled funds: REITs (1) (4) 6 — — — Total $ 1,256 $ 11 $ 251 $ — (1) Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. (2) Consists of corporate and government bonds and fixed-income derivatives. (3) Consists of limited partnerships, private equity, and hedge funds. (4) Consists of property funds and trusts holding direct real estate investments. Fair Value Measurements Using Balance at December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 11 $ 11 $ — $ — Equity investments: Pooled funds: Global (1) 322 — — — North America (1) 36 — — — Derivatives (1) 20 — — — Fixed income investments: Fixed income securities (2) 166 — 166 — Derivatives (2) 37 — 37 — Pooled funds: Fixed income securities (1) 469 — — — Other investments: Alternative investments (1) (3) 9 — — — Pooled funds: REITs (1) (4) 6 — — — Total $ 1,076 $ 11 $ 203 $ — (1) Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. (2) Consists of corporate and government bonds and fixed-income derivatives. (3) Consists of limited partnerships, private equity, and hedge funds. (4) Consists of property funds and trusts holding direct real estate investments. The fair values of the Company’s U.S. pension plan assets at December 31, 2017 and December 31, 2016 , by asset category, are as follows (in millions): Fair Value Measurements Using Asset Category Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents (1) $ 56 $ 56 $ — $ — Equity investments: Large cap domestic 313 313 — — Small cap domestic 17 17 — International 90 90 — Equity derivatives 111 — 111 — Pooled funds: International (2) 270 — — — Large cap domestic (2) 12 — — — Small cap domestic (2) 114 — — — Fixed income investments: (3) Corporate bonds 110 — 110 — Government and agency bonds 148 114 34 — Pooled funds: Corporate bonds (2) 290 — — — Other investments: Real estate and REITs (4) 82 82 — — Alternative investments (2) (5) 345 — — — Total $ 1,958 $ 672 $ 255 $ — (1) Consists of cash and institutional short-term investment funds. (2) Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. (3) Consists of corporate and government bonds, asset-backed securities, and fixed-income derivatives. (4) Consists of exchange traded real estate investment trusts (“REITs”). (5) Consists of limited partnerships, private equity, and hedge funds. Fair Value Measurements Using Asset Category Balance at December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents (1) $ 100 $ 100 $ — $ — Equity investments: Large cap domestic 268 268 — — Small cap domestic 15 15 — — International 64 64 — — Equity derivatives 81 78 3 — Pooled funds: International (2) 196 — — — Small cap domestic (2) 52 — — — Fixed income investments: (3) Corporate bonds 105 — 105 — Government and agency bonds 132 76 56 — Fixed income derivatives 65 65 — — Pooled funds: Corporate bonds (2) 255 — — — Other investments: Commodity derivatives (4) 22 — 22 — Real estate and REITs (5) 61 61 — — Alternative investments (2) (6) 267 — — — Total $ 1,683 $ 727 $ 186 $ — (1) Consists of cash and institutional short-term investment funds. (2) Certain investments measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. (3) Consists of corporate and government bonds, asset-backed securities, and fixed-income derivatives. (4) Consists of long-dated options on a commodity index. (5) Consists of exchange traded REITs. (6) Consists of limited partnerships, private equity, and hedge funds. |
Changes in the Level 3 fair-value category | The following table presents the changes in the Level 3 fair-value category in the Company’s U.K. pension plans for the years ended December 31, 2017 and December 31, 2016 (in millions): Fair Value Measurements Using Level 3 Inputs Annuities Balance at January 1, 2016 $ 827 Actual return on plan assets: Relating to assets still held at December 31, 2016 7 Purchases, sales and settlements—net 1,248 Foreign exchange (309 ) Balance at December 31, 2016 1,773 Actual return on plan assets: Relating to assets still held at December 31, 2017 (66 ) Purchases, sales and settlements—net 45 Foreign exchange 157 Balance at December 31, 2017 $ 1,909 |
Estimated Future Benefit Payments | Estimated future benefit payments for plans, not including voluntary one-time lump sum payments, are as follows at December 31, 2017 (in millions): U.K. U.S. Other 2018 $ 134 $ 170 $ 43 2019 141 176 45 2020 145 182 46 2021 151 187 47 2022 159 182 48 2023 – 2027 858 901 257 |
Other information related to the Company's other post-retirement benefit plans | Other information related to the Company’s other postretirement benefit plans are as follows: 2017 2016 2015 Net periodic benefit cost recognized (millions) $1 $5 $6 Weighted-average discount rate used to determine future benefit obligations 3.32 - 3.64% 3.71 - 4.15% 3.99 - 4.33% Weighted-average discount rate used to determine net periodic benefit costs 3.71 - 4.15% 3.99 - 4.33% 3.83 - 4.08% |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 Consolidated Statements of Income in Compensation and benefits (in millions): Years ended December 31 2017 2016 2015 Restricted share units (“RSUs”) $ 182 $ 176 $ 186 Performance share awards ("PSAs") 127 120 123 Employee share purchase plans 10 10 9 Total share-based compensation expense 319 306 318 Tax benefit 73 90 87 Share-based compensation expense, net of tax $ 246 $ 216 $ 231 |
Restricted share unit activity | The following table summarizes the status of the Company’s RSUs, including shares related to the Divested Business (shares in thousands): Years ended December 31 2017 2016 2015 Shares Fair Value (1) Shares Fair Value (1) Shares Fair Value (1) Non-vested at beginning of year 6,195 $ 89 7,167 $ 77 8,381 $ 63 Granted 1,700 123 2,252 101 2,459 97 Vested (2,407 ) 82 (2,845 ) 70 (3,385 ) 58 Forfeited (639 ) 93 (379 ) 82 (288 ) 71 Non-vested at end of year 4,849 $ 104 6,195 $ 89 7,167 $ 77 (1) Represents per share weighted average fair value of award at date of grant. |
Performance-based plans | Information regarding the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the years ended December 31, 2017 , 2016 , and 2015 , respectively, is as follows (shares in thousands and dollars in millions, except fair value): 2017 2016 2015 Target PSAs granted during period 548 750 963 Weighted average fair value per share at date of grant $ 114 $ 100 $ 96 Number of shares that would be issued based on current performance levels 944 745 1,527 Unamortized expense, based on current performance levels $ 78 $ 25 $ — |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 Net Amount of Derivative Assets Presented in the Statements of Financial Position (1) Net Amount of Derivative Liabilities Presented in the Statements of Financial Position (2) As of December 31 2017 2016 2017 2016 2017 2016 Foreign exchange contracts: Accounted for as hedges $ 701 $ 758 $ 31 $ 13 $ 3 $ 12 Not accounted for as hedges (3) 254 189 1 1 3 1 Total $ 955 $ 947 $ 32 $ 14 $ 6 $ 13 (1) Included within Other current assets ( $9 million in 2017 and $5 million in 2016 ) or Other non-current assets ( $23 million in 2017 and $9 million in 2016 ). (2) Included within Other current liabilities ( $3 million in 2017 and $6 million in 2016 ) or Other non-current liabilities ( $3 million in 2017 and $7 million in 2016 ). (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. |
Derivative gains (losses) | The amounts of derivative gains (losses) recognized in the Consolidated Financial Statements are as follows (in millions): 2017 2016 2015 Gain (Loss) Recognized in Accumulated Other Comprehensive Loss $ 18 $ (25 ) $ (9 ) Location of future reclassification from Accumulated Other Comprehensive Loss Compensation and Benefits $ 12 $ 8 $ 4 Other General Expenses 4 (13 ) (3 ) Interest Expense — — — Other Income (Expense) 2 (20 ) (10 ) The amounts of derivative gains (loss) reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) are as follows (in millions): 2017 2016 2015 Compensation and Benefits $ 14 $ 2 $ 4 Other General Expenses (5 ) (4 ) (1 ) Interest Expense (1 ) (1 ) (9 ) Other Income (Expense) (9 ) (7 ) (11 ) Total $ (1 ) $ (10 ) $ (17 ) |
Fair Value Measurements and F41
Fair Value Measurements and Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 December 31, 2017 and December 31, 2016 , respectively (in millions): Fair Value Measurements Using Balance at December 31, 2017 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 (1) $ 1,847 $ 1,847 $ — $ — Other investments: Government bonds 1 — 1 — Equity investments 4 — 4 — Derivatives (2) : Gross Foreign exchange contracts 33 — 33 — Liabilities: Derivatives (2) : Gross Foreign exchange contracts 6 — 6 — (1) Included within Fiduciary assets, Short-term investments or Cash and cash equivalents in the Consolidated Statements of Financial Position, depending on their nature and initial maturity. (2) Refer to Note 14 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. Fair Value Measurements Using Balance at December 31, 2016 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 (1) $ 1,371 $ 1,371 $ — $ — Other investments: Government bonds 1 — 1 — Equity investments 9 6 3 — Derivatives (2) : Gross Foreign exchange contracts 15 — 15 — Liabilities: Derivatives (2) : Gross Foreign exchange contracts 14 — 14 — (1) Included within Fiduciary assets, Short-term investments or Cash and cash equivalents in the Consolidated Statements of Financial Position, depending on their nature and initial maturity. (2) Refer to Note 14 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. |
Schedule of financial instruments where the carrying amounts and fair values differ | The fair value of 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): 2017 2016 As of December 31 Carrying Value Fair Value Carrying Value Fair Value Current portion of long-term debt (1) $ 299 $ 301 $ — $ — Long-term debt 5,667 6,267 5,869 6,264 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Revenue from continuing operations for each of the Company’s principal product and service lines is as follows (in millions): Year ended December 31 2017 2016 2015 Commercial Risk Solutions $ 4,169 $ 3,929 $ 4,029 Reinsurance Solutions 1,429 1,361 1,358 Retirement Solutions 1,755 1,707 1,916 Health Solutions 1,515 1,370 1,167 Data & Analytic Services 1,140 1,050 1,021 Elimination (10 ) (8 ) (11 ) Total revenue $ 9,998 $ 9,409 $ 9,480 |
Schedule of consolidated revenue by geographic area | Consolidated Revenue by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions): Years ended December 31 Total United States Americas other than U.S. United Kingdom Europe, Middle East, & Africa Asia Pacific 2017 $ 9,998 $ 4,425 $ 976 $ 1,436 $ 2,025 $ 1,136 2016 9,409 3,981 899 1,354 1,760 1,415 2015 9,480 3,924 1,118 1,419 1,826 1,193 |
Schedule of consolidated non-current assets by geographic area | Consolidated Non-current assets by geographic area are as follows (in millions): Years ended December 31 Total United States Americas other than U.S. United Kingdom Europe, Middle East, & Africa Asia Pacific 2017 $ 564 $ 239 $ 47 $ 68 $ 114 $ 96 2016 550 243 60 65 85 97 |
Guarantee of Registered Secur43
Guarantee of Registered Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Guarantee of Registered Securities | |
Condensed Consolidating Statement of Income | Condensed Consolidating Statement of Income Year Ended December 31, 2017 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenue Total revenue $ — $ — $ 9,998 $ — $ 9,998 Expenses Compensation and benefits 150 35 5,904 — 6,089 Information technology — — 419 — 419 Premises — — 348 — 348 Depreciation of fixed assets — — 187 — 187 Amortization and impairment of intangible assets — — 704 — 704 Other general expenses (income) 12 (6 ) 1,266 — 1,272 Total operating expenses 162 29 8,828 — 9,019 Operating income (loss) (162 ) (29 ) 1,170 — 979 Interest income — 52 4 (29 ) 27 Interest expense (202 ) (94 ) (15 ) 29 (282 ) Intercompany interest income (expense) 14 (543 ) 529 — — Intercompany other income (expense) 247 (411 ) 164 — — Other income (expense) (27 ) 21 (51 ) 18 (39 ) Income (loss) from continuing operations before income taxes (130 ) (1,004 ) 1,801 18 685 Income tax expense (benefit) (43 ) (110 ) 403 — 250 Net income (loss) from continuing operations (87 ) (894 ) 1,398 18 435 Income from discontinued operations, net of tax — — 828 — 828 Net income (loss) before equity in earnings of subsidiaries (87 ) (894 ) 2,226 18 1,263 Equity in earnings of subsidiaries, net of tax 1,295 1,054 160 (2,509 ) — Net income 1,208 160 2,386 (2,491 ) 1,263 Less: Net income attributable to noncontrolling interests — — 37 — 37 Net income attributable to Aon shareholders $ 1,208 $ 160 $ 2,349 $ (2,491 ) $ 1,226 Condensed Consolidating Statement of Income Year Ended December 31, 2016 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenue Total revenue $ — $ — $ 9,409 $ — $ 9,409 Expenses Compensation and benefits 130 171 5,386 — 5,687 Information technology — — 386 — 386 Premises — — 343 — 343 Depreciation of fixed assets — — 162 — 162 Amortization and impairment of intangible assets — — 157 — 157 Other general expenses (income) — 2 1,034 — 1,036 Total operating expenses 130 173 7,468 — 7,771 Operating income (loss) (130 ) (173 ) 1,941 — 1,638 Interest income — 16 22 (29 ) 9 Interest expense (196 ) (101 ) (14 ) 29 (282 ) Intercompany interest income (expense) 14 (541 ) 527 — — Intercompany other income (expense) 274 (361 ) 87 — — Other income (expense) 15 (5 ) 44 (18 ) 36 Income (loss) from continuing operations before income taxes (23 ) (1,165 ) 2,607 (18 ) 1,401 Income tax expense (benefit) (55 ) (325 ) 528 — 148 Net income (loss) from continuing operations 32 (840 ) 2,079 (18 ) 1,253 Income from discontinued operations, net of tax — — 177 — 177 Net income (loss) before equity in earnings of subsidiaries 32 (840 ) 2,256 (18 ) 1,430 Equity in earnings of subsidiaries, net of tax 1,382 1,219 379 (2,980 ) — Net income 1,414 379 2,635 (2,998 ) 1,430 Less: Net income attributable to noncontrolling interests — — 34 — 34 Net income attributable to Aon shareholders $ 1,414 $ 379 $ 2,601 $ (2,998 ) $ 1,396 Condensed Consolidating Statement of Income Year Ended December 31, 2015 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustment Consolidated Revenue Total revenue $ — $ — $ 9,480 $ — $ 9,480 Expenses Compensation and benefits 136 32 5,437 — 5,605 Information technology — — 389 — 389 Premises — — 362 — 362 Depreciation of fixed assets — — 164 — 164 Amortization and impairment of intangible assets — 173 — 173 Other general expenses (income) 8 7 1,185 — 1,200 Total operating expenses 144 39 7,710 — 7,893 Operating income (loss) (144 ) (39 ) 1,770 — 1,587 Interest income — 14 19 (19 ) 14 Interest expense (140 ) (130 ) (22 ) 19 (273 ) Intercompany interest income (expense) 429 (479 ) 50 — — Intercompany other income (expense) 302 (422 ) 120 — — Other income (expense) (1 ) — 101 — 100 Income (loss) from continuing operations before income taxes 446 (1,056 ) 2,038 — 1,428 Income tax expense (benefit) 45 (262 ) 392 — 175 Net income (loss) from continuing operations 401 (794 ) 1,646 — 1,253 Income from discontinued operations, net of tax — — 169 — 169 Net income (loss) before equity in earnings of subsidiaries 401 (794 ) 1,815 — 1,422 Equity in earnings of subsidiaries, net of tax 984 1,289 495 (2,768 ) — Net income 1,385 495 2,310 (2,768 ) 1,422 Less: Net income attributable to noncontrolling interests — — 37 — 37 Net income attributable to Aon shareholders $ 1,385 $ 495 $ 2,273 $ (2,768 ) $ 1,385 |
Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2017 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 1,208 $ 160 $ 2,386 $ (2,491 ) $ 1,263 Less: Net income attributable to noncontrolling interests — — 37 — 37 Net income (loss) attributable to Aon shareholders 1,208 160 2,349 (2,491 ) 1,226 Other comprehensive income (loss), net of tax: Change in fair value of financial instruments — 3 9 — 12 Foreign currency translation adjustments — — 408 (18 ) 390 Postretirement benefit obligation — (101 ) 120 — 19 Total other comprehensive income (loss) — (98 ) 537 (18 ) 421 Equity in other comprehensive income (loss) of subsidiaries, net of tax 434 515 417 (1,366 ) — Less: Other comprehensive loss attributable to noncontrolling interests — — 5 — 5 Total other comprehensive income (loss) attributable to Aon shareholders 434 417 949 (1,384 ) 416 Comprehensive income (loss) attributable to Aon shareholders $ 1,642 $ 577 $ 3,298 $ (3,875 ) $ 1,642 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2016 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 1,414 $ 379 $ 2,635 $ (2,998 ) $ 1,430 Less: Net income attributable to noncontrolling interests — — 34 — 34 Net income (loss) attributable to Aon shareholders 1,414 379 2,601 (2,998 ) 1,396 Other comprehensive income (loss), net of tax: Change in fair value of financial instruments — (1 ) (11 ) — (12 ) Foreign currency translation adjustments (2 ) 21 (532 ) 18 (495 ) Postretirement benefit obligation — 68 (52 ) — 16 Total other comprehensive income (loss) (2 ) 88 (595 ) 18 (491 ) Equity in other comprehensive loss of subsidiaries, net of tax (505 ) (547 ) (459 ) 1,511 — Less: Other comprehensive loss attributable to noncontrolling interests — — (2 ) — (2 ) Total other comprehensive income (loss) attributable to Aon shareholders (507 ) (459 ) (1,052 ) 1,529 (489 ) Comprehensive income (loss) attributable to Aon shareholders $ 907 $ (80 ) $ 1,549 $ (1,469 ) $ 907 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2015 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net income (loss) $ 1,385 $ 495 $ 2,310 $ (2,768 ) $ 1,422 Less: Net income attributable to noncontrolling interests — — 37 — 37 Net income (loss) attributable to Aon shareholders 1,385 495 2,273 (2,768 ) 1,385 Other comprehensive income (loss), net of tax: Change in fair value of financial instruments — — (8 ) — (8 ) Foreign currency translation adjustments — (47 ) (395 ) — (442 ) Postretirement benefit obligation — 12 143 — 155 Total other comprehensive income (loss) — (35 ) (260 ) — (295 ) Equity in other comprehensive loss of subsidiaries, net of tax (289 ) (259 ) (294 ) 842 — Less: Other comprehensive loss attributable to noncontrolling interests — — (6 ) — (6 ) Total other comprehensive income (loss) attributable to Aon shareholders (289 ) (294 ) (548 ) 842 (289 ) Comprehensive income (loss) attributable to Aon shareholders $ 1,096 $ 201 $ 1,725 $ (1,926 ) $ 1,096 |
Condensed Consolidating Statement of Financial Position | Condensed Consolidating Statement of Financial Position As of December 31, 2017 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1 $ 2,524 $ 793 $ (2,562 ) $ 756 Short-term investments — 355 174 — 529 Receivables, net — 2 2,476 — 2,478 Fiduciary assets — — 9,625 — 9,625 Intercompany receivables 165 1,046 10,824 (12,035 ) — Other current assets 1 29 259 — 289 Current assets of discontinued operations — — — — — Total Current Assets 167 3,956 24,151 (14,597 ) 13,677 Goodwill — — 8,358 — 8,358 Intangible assets, net — — 1,733 — 1,733 Fixed assets, net — — 564 — 564 Deferred tax asset 99 396 143 (249 ) 389 Intercompany receivables 414 261 8,232 (8,907 ) — Prepaid pension — 6 1,054 — 1,060 Other non-current assets 1 35 271 — 307 Investment in subsidiary 8,884 17,910 20 (26,814 ) — Non-current assets of discontinued operations — — — — — TOTAL ASSETS $ 9,565 $ 22,564 $ 44,526 $ (50,567 ) $ 26,088 LIABILITIES AND EQUITY LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities $ 574 $ 36 $ 3,913 $ (2,562 ) $ 1,961 Short-term debt and current portion of long-term debt — — 299 — 299 Fiduciary liabilities — — 9,625 — 9,625 Intercompany payables 130 11,149 756 (12,035 ) — Other current liabilities 16 64 790 — 870 Current liabilities of discontinued operations — — — — — Total Current Liabilities 720 11,249 15,383 (14,597 ) 12,755 Long-term debt 4,251 1,415 1 — 5,667 Deferred tax liabilities — — 376 (249 ) 127 Pension, other postretirement and other post-employment liabilities — 1,391 398 — 1,789 Intercompany payables — 8,398 509 (8,907 ) — Other non-current liabilities 11 91 1,000 — 1,102 Non-current liabilities of discontinued operations — — — — — TOTAL LIABILITIES 4,982 22,544 17,667 (23,753 ) 21,440 TOTAL AON SHAREHOLDERS’ EQUITY 4,583 20 26,794 (26,814 ) 4,583 Noncontrolling interests — — 65 — 65 TOTAL EQUITY 4,583 20 26,859 (26,814 ) 4,648 TOTAL LIABILITIES AND EQUITY $ 9,565 $ 22,564 $ 44,526 $ (50,567 ) $ 26,088 Condensed Consolidating Statement of Financial Position As of December 31, 2016 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ — $ 1,633 $ 655 $ (1,862 ) $ 426 Short-term investments — 140 150 — 290 Receivables, net — 3 2,103 — 2,106 Fiduciary assets — — 8,959 — 8,959 Intercompany receivables 105 1,880 9,825 (11,810 ) — Other current assets — 25 222 — 247 Current assets of discontinued operations — — 1,118 — 1,118 Total Current Assets 105 3,681 23,032 (13,672 ) 13,146 Goodwill — — 7,410 — 7,410 Intangible assets, net — — 1,890 — 1,890 Fixed assets, net — — 550 — 550 Deferred tax asset 134 726 171 (706 ) 325 Intercompany receivables 366 261 8,711 (9,338 ) — Prepaid pension — 5 853 — 858 Other non-current assets 2 119 239 — 360 Investment in subsidiary 10,107 17,131 (356 ) (26,882 ) — Non-current assets of discontinued operations — — 2,076 — 2,076 TOTAL ASSETS $ 10,714 $ 21,923 $ 44,576 $ (50,598 ) $ 26,615 LIABILITIES AND EQUITY LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities $ 585 $ 44 $ 2,837 $ (1,862 ) $ 1,604 Short-term debt and current portion of long-term debt 279 50 7 — 336 Fiduciary liabilities — — 8,959 — 8,959 Intercompany payables 142 10,399 1,269 (11,810 ) — Other current liabilities — 63 593 — 656 Current liabilities of discontinued operations — — 940 — 940 Total Current Liabilities 1,006 10,556 14,605 (13,672 ) 12,495 Long-term debt 4,177 1,413 279 — 5,869 Deferred tax liabilities — — 759 (658 ) 101 Pension, other postretirement and other post-employment liabilities — 1,356 404 — 1,760 Intercompany payables — 8,877 461 (9,338 ) — Other non-current liabilities 8 77 634 — 719 Non-current liabilities of discontinued operations — — 139 — 139 TOTAL LIABILITIES 5,191 22,279 17,281 (23,668 ) 21,083 TOTAL AON SHAREHOLDERS’ EQUITY 5,523 (356 ) 27,238 (26,930 ) 5,475 Noncontrolling interests — — 57 — 57 TOTAL EQUITY 5,523 (356 ) 27,295 (26,930 ) 5,532 TOTAL LIABILITIES AND EQUITY $ 10,714 $ 21,923 $ 44,576 $ (50,598 ) $ 26,615 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2017 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Cash provided by (used for) operating activities - continuing operations $ 2,787 $ 503 $ 2,010 $ (4,631 ) $ 669 Cash provided by operating activities - discontinued operations — — 65 — 65 CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 2,787 503 2,075 (4,631 ) 734 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from investments 224 587 582 (1,325 ) 68 Payments for investments (261 ) (29 ) (576 ) 802 (64 ) Net purchases (sales) of short-term investments - non-fiduciary — (215 ) (17 ) — (232 ) Acquisition of businesses, net of cash acquired — — (1,029 ) — (1,029 ) Sale of businesses, net of cash sold — — 4,246 — 4,246 Capital expenditures — — (183 ) — (183 ) Cash provided by (used for) investing activities - continuing operations (37 ) 343 3,023 (523 ) 2,806 Cash used for investing activities - discontinued operations — — (19 ) — (19 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES (37 ) 343 3,004 (523 ) 2,787 CASH FLOWS FROM FINANCING ACTIVITIES Share repurchase (2,399 ) — — — (2,399 ) Advances from (to) affiliates 426 95 (4,975 ) 4,454 — Issuance of shares for employee benefit plans (121 ) — — — (121 ) Issuance of debt 544 1,100 10 — 1,654 Repayment of debt (835 ) (1,150 ) (14 ) — (1,999 ) Cash dividends to shareholders (364 ) — — — (364 ) Noncontrolling interests and other financing activities — (36 ) — (36 ) Cash provided by (used for) financing activities - continuing operations (2,749 ) 45 (5,015 ) 4,454 (3,265 ) Cash used for financing activities - discontinued operations — — — — — CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES (2,749 ) 45 (5,015 ) 4,454 (3,265 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — 69 — 69 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1 891 133 (700 ) 325 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR (1) — 1,633 660 (1,862 ) 431 CASH AND CASH EQUIVALENTS AT END OF PERIOD (2) $ 1 $ 2,524 $ 793 $ (2,562 ) $ 756 (1) Includes $5 million of discontinued operations at December 31, 2016. (2) Includes $0 million of discontinued operations at December 31, 2017 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2016 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Cash provided by (used for) operating activities - continuing operations $ 2,705 $ (536 ) $ 2,768 $ (3,108 ) $ 1,829 Cash provided by operating activities - discontinued operations — — 497 — 497 CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 2,705 (536 ) 3,265 (3,108 ) 2,326 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from investments — 316 15 (288 ) 43 Payments for investments — (35 ) (29 ) — (64 ) Net purchases (sales) of short-term investments - non-fiduciary — 70 (9 ) — 61 Acquisition of businesses, net of cash acquired — (335 ) (608 ) 64 (879 ) Sale of businesses, net of cash sold — — 171 (64 ) 107 Capital expenditures — — (156 ) — (156 ) Cash provided by (used for) investing activities - continuing operations — 16 (616 ) (288 ) (888 ) Cash used for investing activities - discontinued operations — — (66 ) — (66 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 16 (682 ) (288 ) (954 ) CASH FLOWS FROM FINANCING ACTIVITIES Share repurchase (1,257 ) — — — (1,257 ) Advances from (to) affiliates (2,008 ) 570 (3,037 ) 4,475 — Issuance of shares for employee benefit plans (129 ) — — — (129 ) Issuance of debt 1,879 1,588 — — 3,467 Repayment of debt (845 ) (2,088 ) (12 ) — (2,945 ) Cash dividends to shareholders (345 ) — — — (345 ) Noncontrolling interests and other financing activities — — (77 ) — (77 ) Cash provided by (used for) financing activities - continuing operations (2,705 ) 70 (3,126 ) 4,475 (1,286 ) Cash used for financing activities - discontinued operations — — — — — CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES (2,705 ) 70 (3,126 ) 4,475 (1,286 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — (39 ) — (39 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS — (450 ) (582 ) 1,079 47 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR (1) — 2,083 1,242 (2,941 ) 384 CASH AND CASH EQUIVALENTS AT END OF PERIOD (2) $ — $ 1,633 $ 660 $ (1,862 ) $ 431 (1) Includes $2 million of discontinued operations at December 31, 2015. (2) Includes $5 million of discontinued operations at December 31, 2016 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 (millions) Aon plc Aon Corporation Other Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Cash provided by (used for) operating activities - continuing operations $ 695 $ 464 $ 2,016 $ (1,673 ) $ 1,502 Cash provided by operating activities - discontinued operations — — 507 — 507 CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 695 464 2,523 (1,673 ) 2,009 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from investments — 27 193 — 220 Payments for investments (13 ) (47 ) (219 ) 13 (266 ) Net purchases (sales) of short-term investments - non-fiduciary — (42 ) 51 — 9 Acquisition of businesses, net of cash acquired — — (16 ) — (16 ) Sale of businesses, net of cash sold — — 205 — 205 Capital expenditures — — (200 ) — (200 ) Cash provided by (used for) investing activities - continuing operations (13 ) (62 ) 14 13 (48 ) Cash used for investing activities - discontinued operations — — (90 ) — (90 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES (13 ) (62 ) (76 ) 13 (138 ) CASH FLOWS FROM FINANCING ACTIVITIES Share repurchase (1,550 ) — — — (1,550 ) Advances from (to) affiliates 232 (326 ) (2,339 ) 2,433 — Issuance of shares for employee benefit plans (29 ) — (1 ) — (30 ) Issuance of debt 1,318 4,026 7 — 5,351 Repayment of debt (330 ) (4,746 ) (22 ) — (5,098 ) Cash dividends to shareholders (323 ) — — — (323 ) Noncontrolling interests and other financing activities — — (39 ) — (39 ) Cash provided by (used for) financing activities - continuing operations (682 ) (1,046 ) (2,394 ) 2,433 (1,689 ) Cash used for financing activities - discontinued operations — — — — — CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES (682 ) (1,046 ) (2,394 ) 2,433 (1,689 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — (172 ) — (172 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS — (644 ) (119 ) 773 10 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR (1) — 2,727 1,361 (3,714 ) 374 CASH AND CASH EQUIVALENTS AT END OF PERIOD (2) $ — $ 2,083 $ 1,242 $ (2,941 ) $ 384 (1) Includes $4 million of discontinued operations at December 31, 2014. (2) Includes $2 million of discontinued operations at December 31, 2015 |
Quarterly Financial Data (Una44
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Selected quarterly financial data for the years ended December 31, 2017 and 2016 are as follows (in millions, except per share data): 1Q 2Q 3Q 4Q 2017 INCOME STATEMENT DATA Total revenue $ 2,381 $ 2,368 $ 2,340 $ 2,909 $ 9,998 Operating income 343 (118 ) 265 489 979 Net income from continuing operations 265 (43 ) 196 17 435 Income from discontinued operations, net of tax 40 821 (4 ) (29 ) 828 Net income 305 778 192 (12 ) 1,263 Less: Net income attributable to noncontrolling interests 14 9 7 7 37 Net income attributable to Aon shareholders $ 291 $ 769 $ 185 $ (19 ) $ 1,226 PER SHARE DATA Basic net income per share attributable to Aon shareholders Continuing operations $ 0.95 $ (0.20 ) $ 0.74 $ 0.04 $ 1.54 Discontinued operations 0.15 3.13 (0.02 ) (0.12 ) 3.20 Net income $ 1.10 $ 2.93 $ 0.72 $ (0.08 ) $ 4.74 Diluted net income per share attributable to Aon shareholders Continuing operations $ 0.94 $ (0.20 ) $ 0.73 $ 0.04 $ 1.53 Discontinued operations 0.15 3.13 (0.01 ) (0.11 ) 3.17 Net income $ 1.09 $ 2.93 $ 0.72 $ (0.07 ) $ 4.70 1Q 2Q 3Q 4Q 2016 INCOME STATEMENT DATA Total revenue $ 2,276 $ 2,282 $ 2,201 $ 2,650 $ 9,409 Operating income 420 387 368 463 1,638 Net income from continuing operations 312 273 284 384 1,253 Income from discontinued operations, net of tax 25 35 42 75 177 Net income 337 308 326 459 1,430 Less: Net income attributable to noncontrolling interests 12 8 7 7 34 Net income attributable to Aon shareholders $ 325 $ 300 $ 319 $ 452 $ 1,396 PER SHARE DATA Basic net income per share attributable to Aon shareholders Continuing operations $ 1.11 $ 0.99 $ 1.03 $ 1.42 $ 4.55 Discontinued operations 0.09 0.13 0.16 0.28 0.66 Net income $ 1.20 $ 1.12 $ 1.19 $ 1.70 $ 5.21 Diluted net income per share attributable to Aon shareholders Continuing operations $ 1.10 $ 0.98 $ 1.03 $ 1.40 $ 4.51 Discontinued operations 0.09 0.13 0.15 0.28 0.65 Net income $ 1.19 $ 1.11 $ 1.18 $ 1.68 $ 5.16 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017segmentrevenue_line | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |
Number of reportable segments | segment | 1 |
Number of revenue lines | 5 |
Commissions, Fees and Other and Fiduciary Investment Income | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |
Number of revenue lines | 1 |
Summary of Significant Accoun46
Summary of Significant Accounting Principles and Practices (Details) $ / shares in Units, £ in Millions, $ in Millions | May 01, 2017 | Dec. 31, 2017USD ($)$ / shares | Jan. 01, 2018USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2016GBP (£) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Cash and Cash Equivalents | |||||||||
Cash and cash equivalents and short-term investments | $ 1,285 | $ 716 | |||||||
Restricted cash and investments, current | 96 | 82 | |||||||
Operating funds in U.K. | £ 42.7 | 57.1 | £ 43.3 | 53.2 | |||||
Fiduciary Assets and Liabilities | |||||||||
Premium trust balances | 3,700 | 3,300 | |||||||
Allowance for Doubtful Accounts | |||||||||
Allowance for doubtful accounts | 59 | 56 | $ 58 | $ 72 | |||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||
Adoption of new accounting guidance | 49 | ||||||||
Deferred tax assets, net | $ 389 | 325 | |||||||
Excess tax benefit amount | $ 54 | ||||||||
Buildings | |||||||||
Fixed Assets | |||||||||
Fixed assets, original life, weighted-average | 35 years | ||||||||
Automobiles | |||||||||
Fixed Assets | |||||||||
Fixed assets, original life, weighted-average | 6 years | ||||||||
Minimum | Software | |||||||||
Fixed Assets | |||||||||
Fixed assets, original life, weighted-average | 4 years | ||||||||
Minimum | Furniture, fixtures and equipment | |||||||||
Fixed Assets | |||||||||
Fixed assets, original life, weighted-average | 4 years | ||||||||
Minimum | Computer equipment | |||||||||
Fixed Assets | |||||||||
Fixed assets, original life, weighted-average | 4 years | ||||||||
Maximum | Software | |||||||||
Fixed Assets | |||||||||
Fixed assets, original life, weighted-average | 7 years | ||||||||
Maximum | Leasehold improvements | |||||||||
Fixed Assets | |||||||||
Fixed assets, original life, weighted-average | 10 years | ||||||||
Maximum | Furniture, fixtures and equipment | |||||||||
Fixed Assets | |||||||||
Fixed assets, original life, weighted-average | 10 years | ||||||||
Maximum | Computer equipment | |||||||||
Fixed Assets | |||||||||
Fixed assets, original life, weighted-average | 6 years | ||||||||
Accounting Standards Update 2016-09, Excess Tax Benefit Component [Member] | |||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||
Deferred tax assets, net | 49 | ||||||||
Income (loss) from extraordinary items, tax effect (in dollars per share) | $ / shares | $ 0.21 | ||||||||
Retained Earnings | |||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||
Adoption of new accounting guidance | 49 | ||||||||
Retained Earnings | Accounting Standards Update 2016-09, Excess Tax Benefit Component [Member] | |||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||
Adoption of new accounting guidance | $ 49 | ||||||||
Customer related and contract based | Minimum | |||||||||
Goodwill and Intangible Assets | |||||||||
Useful life of finite-lived intangible assets | 7 years | ||||||||
Customer related and contract based | Maximum | |||||||||
Goodwill and Intangible Assets | |||||||||
Useful life of finite-lived intangible assets | 20 years | ||||||||
Tradenames | |||||||||
Goodwill and Intangible Assets | |||||||||
Useful life of finite-lived intangible assets | 3 years | ||||||||
Tradenames | Minimum | |||||||||
Goodwill and Intangible Assets | |||||||||
Useful life of finite-lived intangible assets | 1 year | ||||||||
Tradenames | Maximum | |||||||||
Goodwill and Intangible Assets | |||||||||
Useful life of finite-lived intangible assets | 3 years | ||||||||
Technology | Minimum | |||||||||
Goodwill and Intangible Assets | |||||||||
Useful life of finite-lived intangible assets | 5 years | ||||||||
Technology | Maximum | |||||||||
Goodwill and Intangible Assets | |||||||||
Useful life of finite-lived intangible assets | 7 years | ||||||||
Subsequent Event | Accounting Standards Update 2016-16 | |||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||
Adoption of new accounting guidance | $ 15 | ||||||||
Subsequent Event | Accounting Standards Update 2014-09 | Minimum | |||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||
Adoption of new accounting guidance | 400 | ||||||||
Subsequent Event | Accounting Standards Update 2014-09 | Maximum | |||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||
Adoption of new accounting guidance | $ 600 |
Summary of Significant Accoun47
Summary of Significant Accounting Principles and Practices Schedule Of Change In Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Operating income | $ 489 | $ 265 | $ (118) | $ 343 | $ 463 | $ 368 | $ 387 | $ 420 | $ 979 | $ 1,638 | $ 1,587 |
Other income (expense) | (39) | 36 | $ 100 | ||||||||
Pension Plan | US And UK Pension Plans | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Defined benefit plan, settlements, benefit obligation | 128 | 220 | |||||||||
Accounting Standards Update 2017-06 | Adjustments | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Operating income | 86 | 173 | |||||||||
Other income (expense) | (86) | (173) | |||||||||
Accounting Standards Update 2017-06 | Pro Forma | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Operating income | 1,065 | 1,811 | |||||||||
Other income (expense) | $ (125) | $ (137) |
Other Financial Data - Schedule
Other Financial Data - Schedule of Other Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Financial Data [Abstract] | |||
Foreign currency remeasurement gain (loss) | $ (37) | $ (2) | $ 30 |
Net gain (loss) on disposal of businesses | (16) | 39 | 82 |
Equity earnings | 12 | 13 | 13 |
Income (loss) on financial instruments | 2 | (14) | (24) |
Other | 0 | 0 | (1) |
Other income | $ (39) | $ 36 | $ 100 |
Other Financial Data - Schedu49
Other Financial Data - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at January 1 | $ 56 | $ 58 | $ 72 |
Provision charged to Other general expenses | 18 | 10 | 12 |
Accounts written off, net of recoveries | (18) | (15) | (32) |
Foreign currency translation | 3 | 3 | 6 |
Balance at December 31 | $ 59 | $ 56 | $ 58 |
Other Financial Data - Schedu50
Other Financial Data - Schedule of Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Financial Data [Abstract] | ||
Taxes receivable | $ 114 | $ 100 |
Prepaid expenses | 126 | 102 |
Receivables from the Divested Business | 28 | 0 |
Other | 21 | 45 |
Total other current assets | $ 289 | $ 247 |
Other Financial Data - Componen
Other Financial Data - Components of Fixed Assets, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed Assets, net | |||
Fixed assets, gross | $ 1,733 | $ 1,746 | |
Less: Accumulated depreciation | 1,169 | 1,196 | |
Fixed assets, net | 564 | 550 | |
Depreciation of fixed assets | 187 | 162 | $ 164 |
Software | |||
Fixed Assets, net | |||
Fixed assets, gross | 680 | 677 | |
Leasehold improvements | |||
Fixed Assets, net | |||
Fixed assets, gross | 349 | 369 | |
Computer equipment | |||
Fixed Assets, net | |||
Fixed assets, gross | 295 | 258 | |
Furniture, fixtures and equipment | |||
Fixed Assets, net | |||
Fixed assets, gross | 240 | 252 | |
Construction in progress | |||
Fixed Assets, net | |||
Fixed assets, gross | 79 | 75 | |
Other | |||
Fixed Assets, net | |||
Fixed assets, gross | $ 90 | $ 115 |
Other Financial Data - Schedu52
Other Financial Data - Schedule of Other Non-current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Financial Data [Abstract] | ||
Investments | $ 57 | $ 119 |
Taxes receivable | 84 | 82 |
Other | 166 | 159 |
Total Other Non-Current Assets | $ 307 | $ 360 |
Other Financial Data - Schedu53
Other Financial Data - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Financial Data [Abstract] | ||
Deferred revenue | $ 311 | $ 199 |
Taxes payable | 139 | 77 |
Other | 420 | 380 |
Total other current liabilities | 870 | $ 656 |
Current portion of transition tax liability | $ 42 |
Other Financial Data - Schedu54
Other Financial Data - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Financial Data [Abstract] | ||
Taxes payable | $ 529 | $ 288 |
Leases | 153 | 136 |
Compensation and benefits | 67 | 56 |
Deferred revenue | 49 | 49 |
Other | 304 | 190 |
Total other non-current liabilities | 1,102 | $ 719 |
Transition tax for accumulated foreign earnings, noncurrent | $ 222 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Millions | May 01, 2017USD ($)agreement | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash and cash equivalents of discontinued operations | $ 0 | $ 5 | $ 2 | $ 4 | |
Tempo Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of commercial agreements | agreement | 2 | ||||
Tempo Business | Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Purchase price | $ 4,300 | ||||
Gain on sale of discontinued operations, net of tax | 779 | 0 | 0 | ||
Depreciation of fixed assets | 8 | 70 | 65 | ||
Intangible asset amortization | 11 | 120 | $ 141 | ||
Cash and cash equivalents of discontinued operations | 0 | $ 5 | |||
Maximum | Tempo Business | Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Purchase price | 4,200 | ||||
Deferred consideration | $ 500 | ||||
Tradenames | Tempo Business | Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment of intangible assets associated with divested business | $ 380 |
Discontinued Operations - Incom
Discontinued Operations - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Expenses | |||||||||||
Income from discontinued operations, net of tax | $ (29) | $ (4) | $ 821 | $ 40 | $ 75 | $ 42 | $ 35 | $ 25 | $ 828 | $ 177 | $ 169 |
Tempo Business | Discontinued Operations | |||||||||||
Revenue | |||||||||||
Total revenue | 698 | 2,218 | 2,202 | ||||||||
Expenses | |||||||||||
Total operating expenses | 656 | 1,950 | 1,941 | ||||||||
Operating Income from discontinued operations | 42 | 268 | 261 | ||||||||
Other income | 10 | 0 | 0 | ||||||||
Income from discontinued operations before income taxes | 52 | 268 | 261 | ||||||||
Income taxes | 3 | 91 | 92 | ||||||||
Income from discontinued operations excluding gain, net of tax | 49 | 177 | 169 | ||||||||
Gain on sale of discontinued operations, net of tax | 779 | 0 | 0 | ||||||||
Income from discontinued operations, net of tax | $ 828 | $ 177 | $ 169 |
Discontinued Operations - Balan
Discontinued Operations - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 0 | $ 5 | $ 2 | $ 4 |
Receivables, net | 28 | 0 | ||
Tempo Business | Discontinued Operations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 5 | ||
Receivables, net | 0 | 483 | ||
Fiduciary assets | 0 | 526 | ||
Goodwill | 0 | 1,337 | ||
Intangible assets, net | 0 | 333 | ||
Fixed assets, net | 0 | 215 | ||
Other assets | 0 | 295 | ||
TOTAL ASSETS | 0 | 3,194 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 0 | 197 | ||
Fiduciary liabilities | 0 | 526 | ||
Other liabilities | 0 | 356 | ||
TOTAL LIABILITIES | $ 0 | $ 1,079 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - 2017 Plan $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)job_elimination | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | $ 1,025 |
Number of positions eliminated | job_elimination | 2,630 |
Incurred restructuring cost | $ 497 |
Workforce reduction | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | 450 |
Incurred restructuring cost | 299 |
Technology rationalization | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | 130 |
Incurred restructuring cost | 33 |
Lease consolidation | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | 85 |
Incurred restructuring cost | 8 |
Asset impairments | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | 50 |
Incurred restructuring cost | 26 |
Other Restructuring | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | 310 |
Incurred restructuring cost | $ 131 |
Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Expected number of positions eliminated | job_elimination | 4,200 |
Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Expected number of positions eliminated | job_elimination | 4,800 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring and Related Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Estimated Remaining Costs | $ 528 |
2017 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Incurred restructuring cost | 497 |
Expected cost | 1,025 |
Workforce reduction | 2017 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Incurred restructuring cost | 299 |
Estimated Remaining Costs | 151 |
Expected cost | 450 |
Technology rationalization | 2017 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Incurred restructuring cost | 33 |
Estimated Remaining Costs | 97 |
Expected cost | 130 |
Incurred contract termination costs | 1 |
Expected contract termination cost remaining | 10 |
Lease consolidation | 2017 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Incurred restructuring cost | 8 |
Estimated Remaining Costs | 77 |
Expected cost | 85 |
Incurred contract termination costs | 8 |
Expected contract termination cost remaining | 80 |
Asset impairments | 2017 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Incurred restructuring cost | 26 |
Estimated Remaining Costs | 24 |
Expected cost | 50 |
Other Restructuring | 2017 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Incurred restructuring cost | 131 |
Estimated Remaining Costs | 179 |
Expected cost | 310 |
Incurred contract termination costs | 3 |
Expected contract termination cost remaining | $ 10 |
Restructuring - Schedule of R60
Restructuring - Schedule of Restructuring Reserve (Details) - 2017 Plan $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring reserve, beginning balance | $ 0 |
Expensed | 452 |
Cash payments | (280) |
Foreign currency translation and other | 14 |
Restructuring reserve, ending balance | $ 186 |
Acquisitions and Dispositions61
Acquisitions and Dispositions of Businesses - Acquisitions Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)acquisition | Dec. 31, 2016acquisition | |
Business Acquisition | ||
Number of business acquired under business combination | acquisition | 17 | 8 |
Weighted average useful life | 16 years | |
2017 Acquisitions | ||
Business Acquisition | ||
Revenues from acquisitions included in the Company's Consolidated Statement of Income | $ 50 | |
Other General Expenses | 2017 Acquisitions | ||
Business Acquisition | ||
Acquisition related costs | $ 13 |
Acquisitions and Dispositions62
Acquisitions and Dispositions of Businesses - Acquisitions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition | |||
Goodwill | $ 8,358 | $ 7,410 | $ 7,068 |
2017 Acquisitions | |||
Business Acquisition | |||
Cash | 1,136 | ||
Deferred and contingent consideration | 63 | ||
Aggregate consideration transferred | 1,199 | ||
Cash and cash equivalents | 108 | ||
Receivables, net | 47 | ||
Goodwill | 619 | ||
Intangible assets, net | 567 | ||
Fixed assets, net | 18 | ||
Other assets | 200 | ||
Total assets acquired | 1,559 | ||
Current liabilities | 230 | ||
Other liabilities | 130 | ||
Total liabilities assumed | 360 | ||
Net assets acquired | $ 1,199 |
Acquisitions and Dispositions63
Acquisitions and Dispositions of Businesses - Dispositions (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)disposal | Dec. 31, 2016USD ($)disposal | Dec. 31, 2015USD ($)disposal | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net gain (loss) on disposal of businesses | $ | $ (16) | $ 39 | $ 82 |
Disposal Group, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of dispositions | disposal | 9 | 5 | 7 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets - Schedule of changes in the net carrying amount of goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in the net carrying amount of goodwill by operating segment (in millions) | ||
Balance at the beginning of the period | $ 7,410 | $ 7,068 |
Goodwill related to current year acquisitions | 619 | 642 |
Goodwill related to disposals | (5) | (34) |
Goodwill related to prior year acquisitions | (13) | 4 |
Foreign currency translation | 347 | (270) |
Balance at the end of the period | $ 8,358 | $ 7,410 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets - Schedule of other intangible assets by asset class (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,013 | $ 3,397 |
Accumulated Amortization and Impairment | 2,280 | 1,507 |
Net Carrying Amount | 1,733 | 1,890 |
Customer related and contract based | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,550 | 2,023 |
Accumulated Amortization and Impairment | 1,415 | 1,198 |
Net Carrying Amount | 1,135 | 825 |
Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,047 | 1,027 |
Accumulated Amortization and Impairment | 533 | 7 |
Net Carrying Amount | 514 | 1,020 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 416 | 347 |
Accumulated Amortization and Impairment | 332 | 302 |
Net Carrying Amount | $ 84 | 45 |
Reclassified gross carrying amount of finite lived intangibles | 29 | |
Reclassified accumulated amortization of finite lived intangibles | $ 7 |
Goodwill and Other Intangible66
Goodwill and Other Intangible Assets Narrative (Details) $ / shares in Units, $ in Millions | May 01, 2017 | Sep. 30, 2017segment | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Brand transition period | 3 years | ||||
Amortization and impairment of intangible assets | $ 704 | $ 157 | $ 173 | ||
Tradenames | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life of finite-lived intangible assets | 3 years | ||||
Discontinued Operations | Tempo Business | Tradenames | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of intangible assets associated with divested business | 380 | ||||
Additional amortization expense | $ 116 | ||||
Additional amortization (in dollars per share) | $ / shares | $ 0.44 |
Goodwill and Other Intangible67
Goodwill and Other Intangible Assets - Schedule of estimated future amortization expense on intangible assets (Details) $ in Millions | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 410 |
2,019 | 420 |
2,020 | 253 |
2,021 | 140 |
2,022 | 98 |
Thereafter | 412 |
Total future amortization of intangible assets | $ 1,733 |
Debt - Summary of outstanding d
Debt - Summary of outstanding debt (Details) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017CAD | Dec. 31, 2016USD ($) | Mar. 01, 2016USD ($) |
Debt Instrument [Line Items] | |||||
Total debt | $ 5,966,000,000 | $ 6,205,000,000 | |||
Less: Short-term and current portion of long-term debt | 299,000,000 | 336,000,000 | |||
Long-term debt | 5,667,000,000 | 5,869,000,000 | |||
Commercial Paper | |||||
Debt Instrument [Line Items] | |||||
Total debt | 0 | 329,000,000 | |||
Other | |||||
Debt Instrument [Line Items] | |||||
Total debt | 3,000,000 | 9,000,000 | |||
3.875% Senior Notes due December 2025 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 745,000,000 | 744,000,000 | |||
Interest rate on debt | 3.875% | 3.875% | 3.875% | ||
Debt face value | $ 750,000,000 | ||||
5.00% Senior Notes due September 2020 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 598,000,000 | 598,000,000 | |||
Interest rate on debt | 5.00% | 5.00% | 5.00% | ||
3.50% Senior Notes due June 2024 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 592,000,000 | 594,000,000 | |||
Interest rate on debt | 3.50% | 3.50% | 3.50% | ||
4.75% Senior Notes due May 2045 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 595,000,000 | 592,000,000 | |||
Interest rate on debt | 4.75% | 4.75% | 4.75% | ||
2.875% Senior Notes due May 2026 (EUR 500M) | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 544,000,000 | 516,000,000 | |||
Interest rate on debt | 2.875% | 2.875% | 2.875% | ||
Debt face value | € | € 500,000,000 | ||||
4.60% Senior Notes due June 2044 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 587,000,000 | 543,000,000 | |||
Interest rate on debt | 4.60% | 4.60% | 4.60% | ||
8.205% Junior Subordinated Notes due January 2027 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 521,000,000 | 521,000,000 | |||
Interest rate on debt | 8.205% | 8.205% | 8.205% | ||
2.80% Senior Notes due March 2021 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 398,000,000 | 397,000,000 | |||
Interest rate on debt | 2.80% | 2.80% | 2.80% | ||
4.00% Senior Notes due November 2023 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 348,000,000 | 347,000,000 | |||
Interest rate on debt | 4.00% | 4.00% | 4.00% | ||
6.25% Senior Notes due September 2040 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 296,000,000 | 295,000,000 | |||
Interest rate on debt | 6.25% | 6.25% | 6.25% | ||
4.76% Senior Notes due March 2018 (CAD 375M) | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 296,000,000 | 277,000,000 | |||
Interest rate on debt | 4.76% | 4.76% | 4.76% | ||
Debt face value | CAD | CAD 375,000,000 | ||||
4.45% Senior Notes due May 2043 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 246,000,000 | 246,000,000 | |||
Interest rate on debt | 4.45% | 4.45% | 4.45% | ||
4.25% Senior Notes due December 2042 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 197,000,000 | $ 197,000,000 | |||
Interest rate on debt | 4.25% | 4.25% | 4.25% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 12 Months Ended | |||||
Dec. 31, 2017USD ($)credit_facilityprogram | Dec. 31, 2017CAD | Mar. 31, 2017CAD | Dec. 31, 2016USD ($) | May 27, 2016USD ($) | Mar. 01, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||
Short-term debt and current portion of long-term debt | $ 299,000,000 | $ 336,000,000 | ||||
Number of committed credit facilities | credit_facility | 2 | |||||
Number of commercial paper programs | program | 2 | |||||
Senior Notes | 4.76% Senior Notes Due March 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Short-term debt and current portion of long-term debt | $ 296,000,000 | CAD 375,000,000 | ||||
Interest rate on debt | 4.76% | 4.76% | ||||
Senior Notes | 3.125% Senior Notes due May 2016 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on debt | 3.125% | 3.125% | ||||
Debt face value | $ 500,000,000 | |||||
Senior Notes | 3.875% Senior Notes due December 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on debt | 3.875% | 3.875% | ||||
Debt face value | $ 750,000,000 | |||||
Senior Notes | 2.80% Senior Notes due March 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on debt | 2.80% | 2.80% | ||||
Senior Notes | 4.75% Senior Notes due May 2045 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on debt | 4.75% | 4.75% | ||||
Senior Notes | 4.76% Senior Notes due March 2018 (CAD 375M) | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on debt | 4.76% | 4.76% | ||||
Debt face value | CAD | CAD 375,000,000 | |||||
Unsecured Debt | 4.76% Senior Notes due March 2018 (CAD 375M) | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on debt | 4.76% | 4.76% | ||||
Credit Facility Expiring February 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | $ 0 | |||||
New credit and loan facility | 900,000,000 | |||||
Credit Facility Expiring October 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | 0 | |||||
Credit Facility Expiring October 2022 | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
New credit and loan facility | 400,000,000 | |||||
Commercial Paper | Commercial Paper Programs | ||||||
Debt Instrument [Line Items] | ||||||
New credit and loan facility | 1,300,000,000 | |||||
Current borrowing capacity | $ 1,300,000,000 |
Debt - Repayments of long-term
Debt - Repayments of long-term debt (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Debt Disclosure [Abstract] | |
2,018 | $ 299 |
2,019 | 0 |
2,020 | 600 |
2,021 | 400 |
2,022 | 0 |
Thereafter | 4,770 |
Total Repayments | 6,069 |
Unamortized discount, premium, and debt issuance cost | (103) |
Total Debt | $ 5,966 |
Debt - Schedule of Commercial P
Debt - Schedule of Commercial Paper (Details) - Commercial Paper - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Commercial paper outstanding | $ 0 | $ 329 |
Weighted average commercial paper outstanding | $ 170 | $ 265 |
Weighted average interest rate of commercial paper outstanding | 0.18% | 0.22% |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rental expenses for operating leases | |||
Rental expense | $ 377 | $ 358 | $ 413 |
Sub lease rental income | (57) | (52) | (73) |
Net rental expense | 320 | $ 306 | $ 340 |
Future minimum rental payments under operating leases | |||
Gross rental commitment 2018 | 318 | ||
Gross rental commitment 2019 | 291 | ||
Gross rental commitment 2020 | 249 | ||
Gross rental commitment 2021 | 226 | ||
Gross rental commitment 2022 | 205 | ||
Gross rental commitment thereafter | 631 | ||
Total gross rental commitments | 1,920 | ||
Sublease income 2018 | (41) | ||
Sublease income 2019 | (42) | ||
Sublease income 2020 | (35) | ||
Sublease income 2021 | (34) | ||
Sublease income 2022 | (34) | ||
Sublease income thereafter | (18) | ||
Total future sublease income | (204) | ||
Net rental commitment 2018 | 277 | ||
Net rental commitment 2019 | 249 | ||
Net rental commitment 2020 | 214 | ||
Net rental commitment 2021 | 192 | ||
Net rental commitment 2022 | 171 | ||
Net rental commitment thereafter | 613 | ||
Total minimum payments required | $ 1,716 |
Income Taxes - Income from cont
Income Taxes - Income from continuing operations before income tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income before income taxes: | |||
Income from continuing operations before income taxes | $ 685 | $ 1,401 | $ 1,428 |
Current: | |||
Total current | 268 | 248 | 341 |
Deferred tax expense (benefit): | |||
Total deferred | (18) | (100) | (166) |
Total income taxes expenses | 250 | 148 | 175 |
U.K. | |||
Income before income taxes: | |||
Income from continuing operations before income taxes | (420) | (201) | 144 |
Current: | |||
Total current | 1 | (54) | 42 |
Deferred tax expense (benefit): | |||
Total deferred | (5) | 59 | (39) |
U.S. federal | |||
Income before income taxes: | |||
Income from continuing operations before income taxes | (765) | (329) | (283) |
Current: | |||
Total current | 48 | 88 | 22 |
Deferred tax expense (benefit): | |||
Total deferred | 12 | (110) | (94) |
U.S. state and local | |||
Current: | |||
Total current | 18 | 7 | 32 |
Deferred tax expense (benefit): | |||
Total deferred | (35) | (9) | (4) |
Other | |||
Income before income taxes: | |||
Income from continuing operations before income taxes | 1,870 | 1,931 | 1,567 |
Current: | |||
Total current | 201 | 207 | 245 |
Deferred tax expense (benefit): | |||
Total deferred | $ 10 | $ (40) | $ (29) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the income tax provisions based on the U.S. statutory corporate tax rate to the provisions reflected in the Consolidated Financial Statements (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of the income tax provisions based on the statutory corporate tax rate to the provisions reflected in the Consolidated Financial Statements | |||
Statutory tax rate | 19.30% | 20.00% | 20.30% |
U.S. state income taxes, net of U.S. federal benefit | (1.50%) | 0.40% | 0.10% |
Taxes on international operations | (30.30%) | (12.20%) | (8.80%) |
Nondeductible expenses | 3.40% | 1.40% | 2.50% |
Adjustments to prior year tax requirements | 2.00% | (1.20%) | (1.50%) |
Adjustments to valuation allowances | (1.80%) | (2.20%) | (1.40%) |
Change in uncertain tax positions | 1.60% | 3.20% | 1.40% |
Excess tax benefits related to shared based compensation | (8.00%) | 0.00% | 0.00% |
U.S. Tax Reform impact | 51.20% | 0.00% | 0.00% |
Other — net | 0.60% | 1.20% | (0.30%) |
Effective tax rate | 36.50% | 10.60% | 12.30% |
Income Taxes - Components of Ao
Income Taxes - Components of Aon's deferred tax assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Employee benefit plans | $ 424 | $ 661 |
Net operating/capital loss and tax credit carryforwards | 362 | 398 |
Other accrued expenses | 65 | 102 |
Investment basis differences | 35 | 48 |
Deferred revenue | 20 | 57 |
Tradename Liability | 12 | 0 |
Lease and Service Guarantees | 6 | 0 |
Brokerage fee arrangements | 4 | 66 |
Accrued Interest | 1 | 166 |
Other | 48 | 60 |
Total | 977 | 1,558 |
Valuation allowance on deferred tax assets | (136) | (130) |
Total | 841 | 1,428 |
Deferred tax liabilities: | ||
Intangibles and property, plant and equipment | (436) | (978) |
Unremitted earnings | (39) | (29) |
Deferred costs | (32) | (20) |
Unrealized foreign exchange gains | (22) | (26) |
Other accrued expenses | (12) | (101) |
Other | (38) | (50) |
Total | (579) | (1,204) |
Net deferred tax asset | $ 262 | $ 224 |
Income Taxes - Deferred income
Income Taxes - Deferred income taxes (assets and liabilities netted by jurisdiction) as classified in the Consolidated Statements of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income taxes | ||
Deferred tax assets — non-current | $ 389 | $ 325 |
Deferred tax liabilities — non-current | (127) | (101) |
Net deferred tax asset | $ 262 | $ 224 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Estimated transition tax | $ 264 | ||
Estimated tax expense for the re-measurement of deferred tax assets and liabilities | 86 | ||
Decrease in valuation allowance | 6 | ||
Undistributed earnings of foreign subsidiaries | 3,200 | ||
Benefit realized from tax holiday granted | $ 45 | $ 46 | $ 23 |
Earnings per share impact of tax holiday (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.08 |
Unrecognized tax benefits that would impact effective tax rate | $ 219 | $ 240 | $ 200 |
Accrued potential interest and penalties | 11 | 15 | 2 |
Liability recorded for interest and penalties | 55 | $ 48 | $ 33 |
Non-US [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Estimate of local country income and withholding on undistributed earnings | $ 39 |
Income Taxes Operating Loss Car
Income Taxes Operating Loss Carryforwards (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
U.K. | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 675 | $ 325 |
Capital Loss Carryforwards | 415 | 294 |
U.S. Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 36 | 193 |
U.S. State | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 412 | 474 |
Other | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 392 | 350 |
Capital Loss Carryforwards | $ 232 | $ 218 |
Income Taxes - Reconciliation79
Income Taxes - Reconciliation of the beginning and ending amount of unrecognized tax benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of the Company's beginning and ending amount of unrecognized tax benefits | ||
Balance at the beginning of the period | $ 278 | $ 238 |
Additions based on tax positions related to the current year | 25 | 36 |
Additions for tax positions of prior years | 12 | 20 |
Reductions for tax positions of prior years | (26) | (12) |
Settlements | (6) | 0 |
Business combinations | 0 | 2 |
Lapse of statute of limitations | (7) | (5) |
Foreign currency translation, increase | 4 | |
Foreign currency translation, decrease | (1) | |
Balance at the end of the period | $ 280 | $ 278 |
Shareholders' Equity - Distribu
Shareholders' Equity - Distributable Reserves Narrative (Details) - USD ($) $ in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Distributable reserves available amount | $ 1.2 | $ 1.6 |
Shareholders' Equity - Ordinary
Shareholders' Equity - Ordinary Shares (Details) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 28, 2017 | Nov. 30, 2014 | Apr. 30, 2012 | |
Common Stock Programs | |||||||
Cost of shares repurchased | $ 2,415,000,000 | $ 1,257,000,000 | $ 1,550,000,000 | ||||
Additional transaction costs | $ 12,000,000 | $ 6,000,000 | |||||
Share Repurchase Program of 2012 | |||||||
Common Stock Programs | |||||||
Share repurchase authorization limit | $ 5,000,000,000 | ||||||
Number of shares repurchased (in shares) | 108,200 | ||||||
Cost of shares repurchased | $ 9,600,000,000 | ||||||
Share Repurchase Program of 2014 | |||||||
Common Stock Programs | |||||||
Share repurchase authorization limit | $ 15,000,000,000 | $ 5,000,000,000 | $ 5,000,000,000 | ||||
Share Repurchase Program | |||||||
Common Stock Programs | |||||||
Number of shares repurchased (in shares) | 18,000 | 12,200 | |||||
Average price per share of shares purchased under share repurchase program (in dollars per share) | $ 133.67 | $ 102.66 | |||||
Cost of shares repurchased | $ 2,400,000,000 | $ 1,300,000,000 | |||||
Share Repurchase Programs of 2012 and 2014 | |||||||
Common Stock Programs | |||||||
Share repurchase, remaining authorization limit | $ 5,400,000,000 | ||||||
Subsequent Event | Share Repurchase Program | |||||||
Common Stock Programs | |||||||
Number of shares repurchased (in shares) | 118 | ||||||
Average price per share of shares purchased under share repurchase program (in dollars per share) | $ 134.41 | ||||||
Cost of shares repurchased | $ 15,900,000 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of weighted average shares outstanding (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Basic weighted-average ordinary shares outstanding | 258.5 | 268.1 | 280.8 |
Dilutive effect of potentially issuable shares | 2.2 | 2.2 | 3 |
Diluted weighted-average ordinary shares outstanding | 260.7 | 270.3 | 283.8 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Cash dividends to shareholders | $ 364 | $ 345 | $ 323 |
Dividends paid per share (in dollars per share) | $ 1.41 | $ 1.29 | $ 1.15 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated other comprehensive loss, net of related tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | $ 5,532 | $ 6,059 | $ 6,527 |
Other comprehensive income (loss) before reclassifications | 195 | (791) | (389) |
Tax benefit (expense) | 47 | 77 | 23 |
Other comprehensive income (loss) before reclassifications, net | 242 | (714) | (366) |
Amounts reclassified from accumulated other comprehensive income (loss) | 227 | 332 | 128 |
Tax benefit (expense) | (53) | (107) | (51) |
Amounts reclassified from accumulated other comprehensive income (loss), net | 174 | 225 | 77 |
Total other comprehensive income (loss) attributable to Aon shareholders | 416 | (489) | (289) |
Balance | 4,648 | 5,532 | 6,059 |
Change in Fair Value of Investments | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | (37) | (25) | (17) |
Other comprehensive income (loss) before reclassifications | 18 | (25) | (4) |
Tax benefit (expense) | (3) | 6 | 1 |
Other comprehensive income (loss) before reclassifications, net | 15 | (19) | (3) |
Amounts reclassified from accumulated other comprehensive income (loss) | (2) | 10 | 11 |
Tax benefit (expense) | (1) | (3) | (16) |
Amounts reclassified from accumulated other comprehensive income (loss), net | (3) | 7 | (5) |
Total other comprehensive income (loss) attributable to Aon shareholders | 12 | (12) | (8) |
Balance | (25) | (37) | (25) |
Foreign Currency Translation Adjustments | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | (1,264) | (771) | (335) |
Other comprehensive income (loss) before reclassifications | 397 | (490) | (467) |
Tax benefit (expense) | (5) | (3) | 31 |
Other comprehensive income (loss) before reclassifications, net | 392 | (493) | (436) |
Amounts reclassified from accumulated other comprehensive income (loss) | (7) | 0 | 0 |
Tax benefit (expense) | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss), net | (7) | 0 | 0 |
Total other comprehensive income (loss) attributable to Aon shareholders | 385 | (493) | (436) |
Balance | (879) | (1,264) | (771) |
Post-retirement Benefit Obligations | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | (2,611) | (2,627) | (2,782) |
Other comprehensive income (loss) before reclassifications | (220) | (276) | 82 |
Tax benefit (expense) | 55 | 74 | (9) |
Other comprehensive income (loss) before reclassifications, net | (165) | (202) | 73 |
Amounts reclassified from accumulated other comprehensive income (loss) | 236 | 322 | 117 |
Tax benefit (expense) | (52) | (104) | (35) |
Amounts reclassified from accumulated other comprehensive income (loss), net | 184 | 218 | 82 |
Total other comprehensive income (loss) attributable to Aon shareholders | 19 | 16 | 155 |
Balance | (2,592) | (2,611) | (2,627) |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | (3,912) | (3,423) | (3,134) |
Balance | $ (3,496) | $ (3,912) | $ (3,423) |
Employee Benefits - Schedule of
Employee Benefits - Schedule of expense recognized in Compensation and benefit in the Consolidated Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expense recognized for defined contribution savings plans | $ 173 | $ 191 | $ 166 |
U.S. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expense recognized for defined contribution savings plans | 105 | 121 | 100 |
U.K. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expense recognized for defined contribution savings plans | 43 | 43 | 42 |
Netherlands and Canada | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expense recognized for defined contribution savings plans | $ 25 | $ 27 | $ 24 |
Employee Benefits - Pension Pla
Employee Benefits - Pension Plans Narrative (Details) £ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016GBP (£) | Jun. 30, 2016USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Percentage of the Company's projected benefit obligation | 92.00% | 92.00% | ||||||||
U.S. | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Non-cash contributions by employer | $ 80 | |||||||||
U.S. | Pension Plan | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Plans with PBO in excess of the fair value of plan assets, PBO | $ 3,200 | $ 2,900 | $ 3,200 | $ 2,900 | ||||||
Plans with ABO in excess of the fair value of plan assets, fair value of plan assets | 2,000 | 1,700 | 2,000 | 1,700 | ||||||
Plans with ABO in excess of the fair value of plan assets, ABO | 3,200 | 2,900 | 3,200 | 2,900 | ||||||
Benefit payments | 281 | 152 | 139 | |||||||
Settlements | 0 | 281 | ||||||||
Defined benefit plan, benefit obligation, period increase (decrease) | 325 | |||||||||
Defined benefit plan, settlements, benefit obligation | 158 | 0 | 281 | |||||||
Future amortization of loss | 61 | 61 | ||||||||
UK | Pension Plan | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Future amortization of loss | 42 | 42 | ||||||||
U.K. | Pension Plan | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Plans with PBO in excess of the fair value of plan assets, PBO | 52 | 1,200 | 52 | 1,200 | ||||||
Plans with PBO in excess of the fair value of plan assets | 30 | 1,100 | 30 | 1,100 | ||||||
Plans with ABO in excess of the fair value of plan assets, fair value of plan assets | 30 | 1,100 | 30 | 1,100 | ||||||
Plans with ABO in excess of the fair value of plan assets, ABO | 52 | 1,200 | 52 | 1,200 | ||||||
Benefit payments | £ 116 | $ 159 | 146 | 242 | ||||||
Settlements | £ 371 | 496 | 159 | |||||||
Defined benefit plan, benefit obligation, period increase (decrease) | £ 325 | 434 | 103 | 141 | ||||||
Defined benefit plan, settlements, benefit obligation | £ 93 | 125 | £ 42 | $ 61 | 496 | 159 | ||||
Effect of UK Plan insurance contract | $ 267 | |||||||||
Other | Pension Plan | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Plans with PBO in excess of the fair value of plan assets, PBO | 1,400 | 1,200 | 1,400 | 1,200 | ||||||
Plans with PBO in excess of the fair value of plan assets | 1,200 | 1,000 | 1,200 | 1,000 | ||||||
Plans with ABO in excess of the fair value of plan assets, fair value of plan assets | 1,200 | 1,000 | 1,200 | 1,000 | ||||||
Plans with ABO in excess of the fair value of plan assets, ABO | $ 1,300 | $ 1,100 | 1,300 | 1,100 | ||||||
Benefit payments | 39 | 39 | ||||||||
Settlements | 0 | 0 | ||||||||
Defined benefit plan, settlements, benefit obligation | $ 0 | $ 0 |
Employee Benefits - Reconciliat
Employee Benefits - Reconciliation of the changes in the benefit obligations and fair value of assets and a statement of the funded status (Details) - Pension Plan £ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016GBP (£) | Jun. 30, 2016USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
U.K. | |||||||||
Change in projected benefit obligation | |||||||||
Balance at the beginning of the Period | $ 4,874 | $ 4,985 | |||||||
Service cost | 0 | 0 | $ 1 | ||||||
Interest cost | 123 | 158 | 198 | ||||||
Plan amendment | 0 | (20) | |||||||
Settlements | £ (93) | $ (125) | £ (42) | $ (61) | (496) | (159) | |||
Actuarial loss (gain) | (22) | 32 | |||||||
Benefit payments | (146) | (242) | |||||||
Change in discount rate | 122 | 1,079 | |||||||
Foreign currency impact | 438 | (959) | |||||||
Balance at the end of the period | 4,893 | $ 4,874 | 4,893 | 4,874 | 4,985 | ||||
Accumulated benefit obligation at end of year | 4,893 | 4,874 | 4,893 | 4,874 | |||||
Change in fair value of plan assets | |||||||||
Balance at the beginning of the period | 5,675 | 5,903 | |||||||
Actual return on plan assets | 274 | 1,233 | |||||||
Employer contributions | 86 | 67 | |||||||
Settlements | £ (371) | (496) | (159) | ||||||
Benefit payments | £ (116) | $ (159) | (146) | (242) | |||||
Foreign currency impact | 513 | (1,127) | |||||||
Balance at the end of the period | 5,906 | 5,675 | 5,906 | 5,675 | 5,903 | ||||
Market related value at end of year | 5,906 | 5,675 | 5,906 | 5,675 | |||||
Funded status | 1,013 | 801 | 1,013 | 801 | |||||
Unrecognized prior-service cost | 19 | 19 | 19 | 19 | |||||
Unrecognized loss | 1,217 | 1,237 | 1,217 | 1,237 | |||||
Net amount recognized | 2,249 | 2,057 | 2,249 | 2,057 | |||||
U.S. | |||||||||
Change in projected benefit obligation | |||||||||
Balance at the beginning of the Period | 2,902 | 3,154 | |||||||
Service cost | 0 | 0 | 0 | ||||||
Interest cost | 96 | 111 | 131 | ||||||
Plan amendment | 0 | 0 | |||||||
Settlements | (158) | 0 | (281) | ||||||
Actuarial loss (gain) | 127 | (43) | |||||||
Benefit payments | (152) | (139) | |||||||
Change in discount rate | 182 | 100 | |||||||
Foreign currency impact | 0 | 0 | |||||||
Balance at the end of the period | 3,155 | 2,902 | 3,155 | 2,902 | 3,154 | ||||
Accumulated benefit obligation at end of year | 3,155 | 2,902 | 3,155 | 2,902 | |||||
Change in fair value of plan assets | |||||||||
Balance at the beginning of the period | 1,683 | 1,951 | |||||||
Actual return on plan assets | 308 | 116 | |||||||
Employer contributions | 119 | 36 | |||||||
Settlements | 0 | (281) | |||||||
Benefit payments | (281) | (152) | (139) | ||||||
Foreign currency impact | 0 | 0 | |||||||
Balance at the end of the period | 1,958 | 1,683 | 1,958 | 1,683 | 1,951 | ||||
Market related value at end of year | 1,926 | 1,819 | 1,926 | 1,819 | |||||
Funded status | (1,197) | (1,219) | (1,197) | (1,219) | |||||
Unrecognized prior-service cost | 5 | 6 | 5 | 6 | |||||
Unrecognized loss | 1,701 | 1,612 | 1,701 | 1,612 | |||||
Net amount recognized | 509 | 399 | 509 | 399 | |||||
Other | |||||||||
Change in projected benefit obligation | |||||||||
Balance at the beginning of the Period | 1,227 | 1,177 | |||||||
Service cost | 0 | 0 | 0 | ||||||
Interest cost | 26 | 29 | 33 | ||||||
Plan amendment | 0 | 0 | |||||||
Settlements | 0 | 0 | |||||||
Actuarial loss (gain) | 16 | (7) | |||||||
Benefit payments | (39) | (39) | |||||||
Change in discount rate | 33 | 100 | |||||||
Foreign currency impact | 138 | (33) | |||||||
Balance at the end of the period | 1,401 | 1,227 | 1,401 | 1,227 | 1,177 | ||||
Accumulated benefit obligation at end of year | 1,373 | 1,191 | 1,373 | 1,191 | |||||
Change in fair value of plan assets | |||||||||
Balance at the beginning of the period | 1,076 | 1,019 | |||||||
Actual return on plan assets | 70 | 111 | |||||||
Employer contributions | 21 | 20 | |||||||
Settlements | 0 | 0 | |||||||
Benefit payments | (39) | (39) | |||||||
Foreign currency impact | 128 | (35) | |||||||
Balance at the end of the period | 1,256 | 1,076 | 1,256 | 1,076 | $ 1,019 | ||||
Market related value at end of year | 1,256 | 1,076 | 1,256 | 1,076 | |||||
Funded status | (145) | (151) | (145) | (151) | |||||
Unrecognized prior-service cost | (7) | (6) | (7) | (6) | |||||
Unrecognized loss | 459 | 400 | 459 | 400 | |||||
Net amount recognized | $ 307 | $ 243 | $ 307 | $ 243 |
Employee Benefits - Amounts rec
Employee Benefits - Amounts recognized in the Consolidated Statements of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prepaid pension | $ 1,060 | $ 858 |
Pension Plan | U.K. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prepaid pension | 1,034 | 836 |
Accrued benefit liability - current | (1) | (1) |
Accrued benefit liability - non-current | (20) | (34) |
Accumulated other comprehensive loss | 1,236 | 1,256 |
Net amount recognized | 2,249 | 2,057 |
Pension Plan | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prepaid pension | 0 | 0 |
Accrued benefit liability - current | (43) | (44) |
Accrued benefit liability - non-current | (1,154) | (1,175) |
Accumulated other comprehensive loss | 1,706 | 1,618 |
Net amount recognized | 509 | 399 |
Pension Plan | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prepaid pension | 0 | 0 |
Accrued benefit liability - current | (5) | (5) |
Accrued benefit liability - non-current | (140) | (146) |
Accumulated other comprehensive loss | 452 | 394 |
Net amount recognized | $ 307 | $ 243 |
Employee Benefits - Amounts r89
Employee Benefits - Amounts recognized in Accumulated other comprehensive loss that have not yet been recognized (Details 3) - Pension Plan - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
U.K. | ||
Amounts recognized in Accumulated other comprehensive loss unrecognized as components of net periodic benefit cost | ||
Net loss | $ 1,217 | $ 1,237 |
Prior service cost (income) | 19 | 19 |
Amounts recognized in Accumulated other comprehensive loss unrecognized as components of net periodic benefit cost | 1,236 | 1,256 |
U.S. | ||
Amounts recognized in Accumulated other comprehensive loss unrecognized as components of net periodic benefit cost | ||
Net loss | 1,701 | 1,612 |
Prior service cost (income) | 5 | 6 |
Amounts recognized in Accumulated other comprehensive loss unrecognized as components of net periodic benefit cost | 1,706 | 1,618 |
Other | ||
Amounts recognized in Accumulated other comprehensive loss unrecognized as components of net periodic benefit cost | ||
Net loss | 459 | 400 |
Prior service cost (income) | (7) | (6) |
Amounts recognized in Accumulated other comprehensive loss unrecognized as components of net periodic benefit cost | $ 452 | $ 394 |
Employee Benefits - Components
Employee Benefits - Components of net periodic benefit cost (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.K. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 1 |
Interest cost | 123 | 158 | 198 |
Expected return on plan assets, net of administration expenses | (199) | (243) | (307) |
Amortization of prior-service cost | 1 | 2 | 1 |
Amortization of net actuarial loss | 31 | 31 | 41 |
Net periodic benefit (income) cost | (44) | (52) | (66) |
Settlement expense | 125 | 61 | 0 |
Total net periodic benefit cost (income) | 81 | 9 | (66) |
U.S. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 96 | 111 | 131 |
Expected return on plan assets, net of administration expenses | (140) | (156) | (154) |
Amortization of prior-service cost | 2 | 2 | 2 |
Amortization of net actuarial loss | 50 | 50 | 54 |
Net periodic benefit (income) cost | 8 | 7 | 33 |
Settlement expense | 0 | 158 | 0 |
Total net periodic benefit cost (income) | 8 | 165 | 33 |
Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 26 | 29 | 33 |
Expected return on plan assets, net of administration expenses | (47) | (48) | (50) |
Amortization of prior-service cost | 0 | 0 | 0 |
Amortization of net actuarial loss | 11 | 10 | 11 |
Net periodic benefit (income) cost | (10) | (9) | (6) |
Settlement expense | 0 | 0 | 0 |
Total net periodic benefit cost (income) | $ (10) | $ (9) | $ (6) |
Employee Benefits - Weighted-av
Employee Benefits - Weighted-average assumptions used to determine future benefit obligations (Details) - Pension Plan | Dec. 31, 2017 | Dec. 31, 2016 |
U.K. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 2.63% | 2.77% |
Underlying price inflation | 1.87% | 1.83% |
U.K. | Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Rate of compensation increase | 3.70% | 3.70% |
U.K. | Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Rate of compensation increase | 4.20% | 4.20% |
U.S. | Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 3.27% | 3.53% |
U.S. | Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 3.61% | 4.11% |
Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Underlying price inflation | 2.00% | |
Other | Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 1.78% | 1.85% |
Rate of compensation increase | 1.00% | 1.00% |
Underlying price inflation | 2.00% | |
Other | Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 3.39% | 3.81% |
Rate of compensation increase | 3.00% | 3.50% |
Underlying price inflation | 2.50% |
Employee Benefits - Weighted-92
Employee Benefits - Weighted-average assumptions used to determine the net periodic benefit cost (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.K. | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Rate of compensation increase | 3.70% | 3.63% | 3.55% |
U.K. | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Rate of compensation increase | 4.20% | 4.13% | 4.05% |
U.K. | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 2.77% | 3.96% | 3.70% |
Expected return on plan assets, net of administration expenses | 3.36% | 4.55% | 5.09% |
U.S. | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on plan assets, net of administration expenses | 7.88% | 7.81% | 7.96% |
U.S. | Pension Plan | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.53% | 3.69% | 3.37% |
U.S. | Pension Plan | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.11% | 4.43% | 4.08% |
Other | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Rate of compensation increase | 1.00% | 2.00% | 2.25% |
Other | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Other | Pension Plan | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 1.85% | 2.43% | 2.03% |
Expected return on plan assets, net of administration expenses | 2.68% | 3.47% | 3.99% |
Other | Pension Plan | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.81% | 3.96% | 3.91% |
Expected return on plan assets, net of administration expenses | 5.15% | 4.95% | 5.21% |
Employee Benefits - Expected Re
Employee Benefits - Expected Return on Plan Assets Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on plan assets, net of administration expenses | 7.88% | 7.81% | 7.96% |
Employee Benefits - Schedule 94
Employee Benefits - Schedule of Fair Value of U.S Plan Assets (Details) - Pension Plan - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 5,906 | $ 5,675 | $ 5,903 |
U.K. | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 209 | 86 | |
U.K. | Equity derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | (771) | 10 | |
U.K. | Alternative investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 911 | 773 | |
U.K. | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2,571 | 1,947 | |
U.K. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 209 | 86 | |
U.K. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.K. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Alternative investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.K. | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | (346) | 413 | |
U.K. | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.K. | Significant Other Observable Inputs (Level 2) | Equity derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | (771) | 10 | |
U.K. | Significant Other Observable Inputs (Level 2) | Alternative investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.K. | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,909 | 1,773 | |
U.K. | Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.K. | Significant Unobservable Inputs (Level 3) | Equity derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.K. | Significant Unobservable Inputs (Level 3) | Alternative investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,958 | 1,683 | $ 1,951 |
U.S. | Fixed income derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 65 | ||
U.S. | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 56 | 100 | |
U.S. | Large cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 313 | 268 | |
U.S. | Small cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 17 | 15 | |
U.S. | Large cap international | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 90 | 64 | |
U.S. | Equity derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 111 | 81 | |
U.S. | International pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 270 | 196 | |
U.S. | Pooled funds large cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 12 | ||
U.S. | Pooled funds small cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 114 | 52 | |
U.S. | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 110 | 105 | |
U.S. | Government and agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 148 | 132 | |
U.S. | Corporate Bonds And Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 290 | 255 | |
U.S. | Commodity Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 22 | ||
U.S. | Real estate and REITS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 82 | 61 | |
U.S. | Alternative investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 345 | 267 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 672 | 727 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed income derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 65 | ||
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 56 | 100 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Large cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 313 | 268 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Small cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 17 | 15 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Large cap international | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 90 | 64 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 78 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | International pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled funds large cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled funds small cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government and agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 114 | 76 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds And Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Real estate and REITS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 82 | 61 | |
U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | Alternative investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 255 | 186 | |
U.S. | Significant Other Observable Inputs (Level 2) | Fixed income derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
U.S. | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Other Observable Inputs (Level 2) | Large cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Other Observable Inputs (Level 2) | Small cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Other Observable Inputs (Level 2) | Large cap international | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Other Observable Inputs (Level 2) | Equity derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 111 | 3 | |
U.S. | Significant Other Observable Inputs (Level 2) | International pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Other Observable Inputs (Level 2) | Pooled funds large cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
U.S. | Significant Other Observable Inputs (Level 2) | Pooled funds small cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Other Observable Inputs (Level 2) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 110 | 105 | |
U.S. | Significant Other Observable Inputs (Level 2) | Government and agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 34 | 56 | |
U.S. | Significant Other Observable Inputs (Level 2) | Corporate Bonds And Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Other Observable Inputs (Level 2) | Commodity Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 22 | ||
U.S. | Significant Other Observable Inputs (Level 2) | Real estate and REITS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Other Observable Inputs (Level 2) | Alternative investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Unobservable Inputs (Level 3) | Fixed income derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
U.S. | Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Unobservable Inputs (Level 3) | Large cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Unobservable Inputs (Level 3) | Small cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
U.S. | Significant Unobservable Inputs (Level 3) | Large cap international | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
U.S. | Significant Unobservable Inputs (Level 3) | Equity derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Unobservable Inputs (Level 3) | International pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Unobservable Inputs (Level 3) | Pooled funds large cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
U.S. | Significant Unobservable Inputs (Level 3) | Pooled funds small cap domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Unobservable Inputs (Level 3) | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Unobservable Inputs (Level 3) | Government and agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Unobservable Inputs (Level 3) | Corporate Bonds And Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Unobservable Inputs (Level 3) | Commodity Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
U.S. | Significant Unobservable Inputs (Level 3) | Real estate and REITS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
U.S. | Significant Unobservable Inputs (Level 3) | Alternative investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 0 | $ 0 |
Employee Benefits - Schedule 95
Employee Benefits - Schedule of Fair Value of U.K. Plan Assets (Details) - Pension Plan - U.K. - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | $ 5,906 | $ 5,675 | $ 5,903 |
Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 209 | 86 | |
Equity securities - global | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 135 | ||
Pooled funds - Global | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 401 | 365 | |
Pooled funds - Europe | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 6 | 18 | |
Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | (771) | 10 | |
Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 2,787 | 2,129 | |
Annuities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 1,909 | 1,773 | |
Pooled funds derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 62 | ||
Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 57 | ||
Pooled funds - Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 251 | 223 | |
Pooled Funds, Real Estate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 146 | 101 | |
Alternative investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 911 | 773 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 2,571 | 1,947 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 209 | 86 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities - global | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 135 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled funds - Global | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled funds - Europe | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 2,362 | 1,726 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Annuities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled funds - Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled Funds, Real Estate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Alternative investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | (346) | 413 | |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Equity securities - global | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | ||
Significant Other Observable Inputs (Level 2) | Pooled funds - Global | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Pooled funds - Europe | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | (771) | 10 | |
Significant Other Observable Inputs (Level 2) | Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 425 | 403 | |
Significant Other Observable Inputs (Level 2) | Annuities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | ||
Significant Other Observable Inputs (Level 2) | Pooled funds - Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Pooled Funds, Real Estate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Alternative investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 1,909 | 1,773 | |
Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Equity securities - global | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | ||
Significant Unobservable Inputs (Level 3) | Pooled funds - Global | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Pooled funds - Europe | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Annuities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 1,909 | 1,773 | $ 827 |
Significant Unobservable Inputs (Level 3) | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | ||
Significant Unobservable Inputs (Level 3) | Pooled funds - Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Pooled Funds, Real Estate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Alternative investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | $ 0 | $ 0 |
Employee Benefits - Schedule 96
Employee Benefits - Schedule of changes in Level 3 fair value for U.K. Pension Plans (Details) - Pension Plan - U.K. - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Actual return on plan assets: | ||
Balance at the beginning of the period | $ 5,675 | $ 5,903 |
Foreign exchange | (513) | 1,127 |
Balance at the end of the period | 5,906 | 5,675 |
Annuities | ||
Actual return on plan assets: | ||
Balance at the beginning of the period | 1,773 | |
Balance at the end of the period | 1,909 | 1,773 |
Significant Unobservable Inputs (Level 3) | ||
Actual return on plan assets: | ||
Balance at the beginning of the period | 1,773 | |
Balance at the end of the period | 1,909 | 1,773 |
Significant Unobservable Inputs (Level 3) | Annuities | ||
Actual return on plan assets: | ||
Balance at the beginning of the period | 1,773 | 827 |
Relating to assets still held at the end of the year | (66) | 7 |
Purchases, sales and settlements—net | 45 | 1,248 |
Foreign exchange | 157 | (309) |
Balance at the end of the period | $ 1,909 | $ 1,773 |
Employee Benefits - Schedule 97
Employee Benefits - Schedule of Fair Value of Other Plan Assets (Details) - Other - Pension Plan - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | $ 1,256 | $ 1,076 | $ 1,019 |
Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 11 | 11 | |
Pooled funds - Global | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 370 | 322 | |
Pooled funds small cap domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 26 | 36 | |
Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 20 | ||
Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 211 | 166 | |
Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 40 | 37 | |
Pooled funds - Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 566 | 469 | |
Alternative investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 26 | 9 | |
Pooled Funds, Real Estate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 6 | 6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 11 | 11 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 11 | 11 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled funds - Global | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled funds small cap domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled funds - Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Alternative investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled Funds, Real Estate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 251 | 203 | |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Pooled funds - Global | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Pooled funds small cap domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | ||
Significant Other Observable Inputs (Level 2) | Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 211 | 166 | |
Significant Other Observable Inputs (Level 2) | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 40 | 37 | |
Significant Other Observable Inputs (Level 2) | Pooled funds - Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Alternative investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Pooled Funds, Real Estate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Pooled funds - Global | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Pooled funds small cap domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | ||
Significant Unobservable Inputs (Level 3) | Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Derivatives | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Pooled funds - Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Alternative investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Pooled Funds, Real Estate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total | $ 0 | $ 0 |
Employee Benefits - Investment
Employee Benefits - Investment Policy and Strategy Narrative (Details) | Dec. 31, 2017 |
UK | Equity investments | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actual allocation percentage | 13.00% |
UK | Fixed income investments | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actual allocation percentage | 78.00% |
UK | Other Investments | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actual allocation percentage | 9.00% |
Pension Plan | U.S. | Equity investments | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocation percentage | 55.00% |
Pension Plan | U.S. | Fixed income investments | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocation percentage | 25.00% |
Pension Plan | U.S. | Other Investments | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target allocation percentage | 20.00% |
Employee Benefits - Cash Flows
Employee Benefits - Cash Flows Narrative (Details) - Pension Plan $ in Millions | Dec. 31, 2017USD ($) |
U.S. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions during next fiscal year | $ 92 |
U.K. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions during next fiscal year | 63 |
Other | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions during next fiscal year | $ 22 |
Employee Benefits - Estimated F
Employee Benefits - Estimated Future Benefit Payments (Details) - Pension Plan $ in Millions | Dec. 31, 2017USD ($) |
U.K. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,018 | $ 134 |
2,019 | 141 |
2,020 | 145 |
2,021 | 151 |
2,022 | 159 |
2023 - 2027 | 858 |
U.S. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,018 | 170 |
2,019 | 176 |
2,020 | 182 |
2,021 | 187 |
2,022 | 182 |
2023 - 2027 | 901 |
Other | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,018 | 43 |
2,019 | 45 |
2,020 | 46 |
2,021 | 47 |
2,022 | 48 |
2023 - 2027 | $ 257 |
Employee Benefits - Overview of
Employee Benefits - Overview of the accumulated benefit obligation, fair value of plan assets, funded status and net amount recognized for U.S. and Canadian Other Post-Retirement Benefits (Details) - U.S. and Canadian Other Post-Retirement Benefits - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated projected benefit obligation | $ 99 | $ 110 |
Fair value of plan assets | 17 | 18 |
Funded status | (82) | (92) |
Unrecognized prior-service credit | (1) | (3) |
Unrecognized loss | (3) | 10 |
Net amount recognized | $ (86) | $ (85) |
Employee Benefits - Schedule102
Employee Benefits - Schedule of Other information related to Company's other post-retirement plan's (Details) - U.S. and Canadian Other Post-Retirement Benefits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost recognized (millions) | $ 1 | $ 5 | $ 6 |
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted-average discount rate used to determine future benefit obligations | 3.32% | 3.71% | 3.99% |
Weighted-average discount rate used to determine net periodic benefit costs | 3.71% | 3.99% | 3.83% |
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted-average discount rate used to determine future benefit obligations | 3.64% | 4.15% | 4.33% |
Weighted-average discount rate used to determine net periodic benefit costs | 4.15% | 4.33% | 4.08% |
Employee Benefits - U.S. and Ca
Employee Benefits - U.S. and Canadian Other Post-Retirement Benefits Narrative (Details) - U.S. and Canadian Other Post-Retirement Benefits - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized prior-service cost | $ 1 | $ 3 |
Future amortization of gain | 1.4 | |
Future amortization of prior service credit | 0.1 | |
Expected employer contributions during next fiscal year | 4 | |
Expected future benefit payments 2018 | 4 | |
Expected future benefit payments 2019 | 0 | |
Expected future benefit payments 2020 | 0 | |
Expected future benefit payments 2021 | 0 | |
Expected future benefit payments 2022 | 0 | |
Expected future benefit payments 2023-2027 | 194 | |
Effect of one percentage point increase on accumulated postretirement benefit obligation | 6 | |
Effect of one percentage point decrease on accumulated postretirement benefit obligation | 5 | |
Effect of one percentage point increase on service cost and interest cost components of net periodic benefit cost | 0.5 | |
Effect of one percentage point decrease on service cost and interest cost components of net periodic benefit cost | $ 0.5 | |
Maximum percentage of liability for future plan cost increases for pre-65 and medical supplement plan coverage | 5.00% | |
Maximum percentage of medical supplement plan into future periods | 5.00% | |
Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Maximum percentage of liability for future plan cost increases for pre-65 and medical supplement plan coverage | 9.00% | |
Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Maximum percentage of liability for future plan cost increases for pre-65 and medical supplement plan coverage | 4.00% |
Share-Based Compensation Pla104
Share-Based Compensation Plans - Share-based compensation expense recognized in continuing operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 319 | $ 306 | $ 318 |
Tax benefit | 73 | 90 | 87 |
Share-based compensation expense, net of tax | 246 | 216 | 231 |
Employee share purchase plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 10 | 10 | 9 |
Restricted share units (“RSUs”) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 182 | 176 | 186 |
Performance share awards (PSAs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 127 | $ 120 | $ 123 |
Share-Based Compensation Pla105
Share-Based Compensation Plans - Restricted Share Units Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average remaining amortization period (in years) | 2 years 1 month | ||
Restricted share units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of RSUs vested during the period | $ 197 | $ 200 | $ 196 |
Unamortized deferred compensation | $ 341 | ||
Restricted share units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted share units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years |
Share-Based Compensation Pla106
Share-Based Compensation Plans - Summary of the status of the Company's RSUs (Details) - Restricted share units (“RSUs”) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-vested share awards | |||
Non-vested at beginning of period (in shares) | 6,195 | 7,167 | 8,381 |
Granted (in shares) | 1,700 | 2,252 | 2,459 |
Vested (in shares) | (2,407) | (2,845) | (3,385) |
Forfeited (in shares) | (639) | (379) | (288) |
Non-vested at end of period (in shares) | 4,849 | 6,195 | 7,167 |
Weighted Average Fair value | |||
Non-vested at beginning of period (in dollars per share) | $ 89 | $ 77 | $ 63 |
Granted (in dollars per share) | 123 | 101 | 97 |
Vested (in dollars per share) | 82 | 70 | 58 |
Forfeited (in dollars per share) | 93 | 82 | 71 |
Non-vested at end of period (in dollars per share) | $ 104 | $ 89 | $ 77 |
Share-Based Compensation Pla107
Share-Based Compensation Plans - Performance Share Awards Narrative (Details) - Performance-based Awards - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
PSA, vesting conditions period (in years) | 3 years | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
PSA, actual shares issued, percent | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
PSA, actual shares issued, percent | 200.00% | ||
Leadership Performance Plan Cycle 2014-2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued (in shares) | 0.9 | ||
Leadership Performance Plan Cycle 2013-2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued (in shares) | 1.3 | ||
Leadership Performance Plan Cycle 2012-2014 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued (in shares) | 1.6 |
Share-Based Compensation Pla108
Share-Based Compensation Plans - Schedule of Performance-based plans (Details) - Performance-based Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target PSAs granted (in shares) | 548 | 750 | 963 |
Fair value (in dollars per share) | $ 114 | $ 100 | $ 96 |
Number of shares that would be issued based on current performance levels (in shares) | 944 | 745 | 1,527 |
Unamortized expense, based on current performance levels | $ 78 | $ 25 | $ 0 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months | $ 9 | ||
Income (loss) on financial instruments | 2 | $ (14) | $ (24) |
Gain (loss) recognized in income on ineffective portion of derivatives | $ 0 | 0 | 0 |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Maximum length of time hedged in foreign currency undesignated hedge (in years) | 1 year | ||
Gross Foreign exchange contracts | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Income (loss) on financial instruments | $ 7 | $ 0.2 | $ 8 |
Cash Flow Hedging | |||
Derivative [Line Items] | |||
Foreign currency exposures, maximum average hedging period ( in years) | 2 years |
Derivatives and Hedging - Notio
Derivatives and Hedging - Notional and fair values of derivative instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Current Assets | ||
Derivative [Line Items] | ||
Derivative assets | $ 9 | $ 5 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Derivative assets | 23 | 9 |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Derivative liabilities | 3 | 6 |
Other Noncurrent Liabilities | ||
Derivative [Line Items] | ||
Derivative liabilities | 3 | 7 |
Designated as Hedging Instrument | Gross Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | 701 | 758 |
Derivative assets | 31 | 13 |
Derivative liabilities | 3 | 12 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 955 | 947 |
Derivative assets | 32 | 14 |
Derivative liabilities | 6 | 13 |
Not Designated as Hedging Instrument | Gross Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | 254 | 189 |
Derivative assets | 1 | |
Derivative liabilities | $ 3 | $ 1 |
Term of contract ( in days) | 30 days |
Derivatives and Hedging - Offse
Derivatives and Hedging - Offsetting of financial assets and derivatives assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Current Assets | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | $ 9 | $ 5 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 23 | 9 |
Designated as Hedging Instrument | Gross Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | $ 31 | $ 13 |
Derivatives and Hedging - Of112
Derivatives and Hedging - Offsetting of financial liabilities and derivative liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 3 | $ 6 |
Other Noncurrent Liabilities | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Liabilities | 3 | 7 |
Designated as Hedging Instrument | Gross Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 3 | $ 12 |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of amounts of derivative gains (losses) recognized in the Consolidated Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Gain (loss) recognized in accumulated other comprehensive income | $ 18 | $ (25) | $ (9) |
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months | (9) | ||
Gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | (1) | (10) | (17) |
Compensation and Benefits | |||
Derivative [Line Items] | |||
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months | 12 | 8 | 4 |
Gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | 14 | 2 | 4 |
Other General Expenses | |||
Derivative [Line Items] | |||
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months | 4 | (13) | (3) |
Gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | (5) | (4) | (1) |
Interest Expense | |||
Derivative [Line Items] | |||
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months | 0 | 0 | 0 |
Gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | (1) | (1) | (9) |
Other Income (Expense) | |||
Derivative [Line Items] | |||
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months | 2 | (20) | (10) |
Gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | $ (9) | $ (7) | $ (11) |
Fair Value Measurements and 114
Fair Value Measurements and Financial Instruments - Schedule of assets and liabilities that are measured at fair value on a recurring basis (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Money market funds | ||
Assets: | ||
Money market funds | $ 1,847 | $ 1,371 |
Government bonds | ||
Assets: | ||
Other investments: | 1 | 1 |
Equity investments | ||
Assets: | ||
Other investments: | 4 | 9 |
Gross Foreign exchange contracts | ||
Assets: | ||
Derivatives | 33 | 15 |
Liabilities: | ||
Derivatives | 6 | 14 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Assets: | ||
Money market funds | 1,847 | 1,371 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds | ||
Assets: | ||
Other investments: | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity investments | ||
Assets: | ||
Other investments: | 0 | 6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Gross Foreign exchange contracts | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Money market funds | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Government bonds | ||
Assets: | ||
Other investments: | 1 | 1 |
Significant Other Observable Inputs (Level 2) | Equity investments | ||
Assets: | ||
Other investments: | 4 | 3 |
Significant Other Observable Inputs (Level 2) | Gross Foreign exchange contracts | ||
Assets: | ||
Derivatives | 33 | 15 |
Liabilities: | ||
Derivatives | 6 | 14 |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Assets: | ||
Money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Government bonds | ||
Assets: | ||
Other investments: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Equity investments | ||
Assets: | ||
Other investments: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Gross Foreign exchange contracts | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | $ 0 | $ 0 |
Fair Value Measurements and 115
Fair Value Measurements and Financial Instruments - Schedule of financial instruments where the carrying amounts and fair values differ (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair value of financial instrument | ||
Current portion of long-term debt | $ 299 | $ 0 |
Fair value current portion of long-term debt | 301 | 0 |
Long-term debt | 5,667 | 5,869 |
Fair value of long term debt | $ 6,267 | $ 6,264 |
Fair Value Measurements and 116
Fair Value Measurements and Financial Instruments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |||
Unrealized gain (loss) | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Legal Narrative (Details) £ in Millions, NZD in Millions | Jan. 26, 2018USD ($) | Oct. 03, 2017USD ($) | Oct. 03, 2017NZD | Jun. 29, 2015NZD | Jan. 31, 2015USD ($) | Jan. 26, 2015USD ($) | Jan. 26, 2015CHF (SFr) | Dec. 02, 2014USD ($) | Dec. 02, 2014CHF (SFr) | Jun. 01, 2007USD ($) | Jun. 01, 2007CHF (SFr) | Aug. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014CHF (SFr) | May 31, 2010USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 20, 2016GBP (£) | Apr. 30, 2014GBP (£) |
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Total revenue | $ 2,909,000,000 | $ 2,340,000,000 | $ 2,368,000,000 | $ 2,381,000,000 | $ 2,650,000,000 | $ 2,201,000,000 | $ 2,282,000,000 | $ 2,276,000,000 | $ 9,998,000,000 | $ 9,409,000,000 | $ 9,480,000,000 | |||||||||||||||||||
Potential Claim for Pension Advisory Services | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Estimate of possible loss | 60,000,000 | 60,000,000 | £ 45 | |||||||||||||||||||||||||||
Opry Mills Mall Limited Partnership | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Value of damages sought | $ 200,000,000 | |||||||||||||||||||||||||||||
Amount of coverage for damages contended by the insurers | 50,000,000 | |||||||||||||||||||||||||||||
Difference amount of damages sought by the client | $ 150,000,000 | |||||||||||||||||||||||||||||
Opry Mills Mall Limited Partnership | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Damages awarded | $ 204,000,000 | $ 200,000,000 | ||||||||||||||||||||||||||||
International Road Transport Union | Litigation Foreign Currency Denominated Award | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Value of damages sought | SFr 46,000,000 | $ 47,000,000 | ||||||||||||||||||||||||||||
Damages awarded excluding interest and costs | SFr 16,800,000 | 17,000,000 | ||||||||||||||||||||||||||||
Damages awarded | SFr 27,900,000 | 28,000,000 | ||||||||||||||||||||||||||||
Litigation settlement amount awarded to other party | $ 14,000,000 | SFr 12,800,000 | ||||||||||||||||||||||||||||
Settlement agreement terms maximum liability | SFr 15,000,000 | $ 15,000,000 | ||||||||||||||||||||||||||||
International Road Transport Union | Litigation USD Denominated Award | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Value of damages sought | $ 3,000,000 | |||||||||||||||||||||||||||||
Damages awarded excluding interest and costs | $ 3,100,000 | |||||||||||||||||||||||||||||
Damages awarded | $ 5,000,000 | |||||||||||||||||||||||||||||
Litigation settlement amount awarded to other party | $ 4,700,000 | |||||||||||||||||||||||||||||
Settlement agreement terms maximum liability | $ 344,000 | |||||||||||||||||||||||||||||
International Road Transport Union | Litigation Expenses and Interest | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Value of damages sought | $ 30,000,000 | |||||||||||||||||||||||||||||
Trustees of Gleeds Pension Fund 2016 | Potential Claim for Pension Advisory Services | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Estimate of possible loss | 94,000,000 | 94,000,000 | £ 70 | |||||||||||||||||||||||||||
Pending Litigation | Lyttleton Port Company Limited | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Value of damages sought | NZD 184 | 130,000,000 | ||||||||||||||||||||||||||||
Pending Litigation | Christchurch City Council | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Value of damages sought | $ 372,000,000 | NZD 528 | ||||||||||||||||||||||||||||
Minimum | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Estimate of possible loss | 0 | 0 | ||||||||||||||||||||||||||||
Maximum | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Estimate of possible loss | $ 300,000,000 | $ 300,000,000 | ||||||||||||||||||||||||||||
Aviation and Aerospace Broking Industry | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Total revenue | $ 100,000,000 | |||||||||||||||||||||||||||||
Subsequent Event | Opry Mills Mall Limited Partnership | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Damages awarded | $ 50,000,000 |
Commitments and Contingencie118
Commitments and Contingencies - Guarantees and Indemnifications Narrative (Details) $ in Millions | Dec. 31, 2017USD ($) |
Loss Contingencies [Line Items] | |
Maximum potential funding under commitments | $ 95 |
Discontinued Operations, Disposed of by Sale | Tempo Business | Property Lease Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential funding under commitments | 100 |
Guarantor obligations, current carrying value | 23 |
Discontinued Operations, Disposed of by Sale | Tempo Business | Performance Guarantee | |
Loss Contingencies [Line Items] | |
Maximum potential funding under commitments | 212 |
Guarantor obligations, current carrying value | $ 1 |
Commitments and Contingencie119
Commitments and Contingencies - Letters of Credit Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding | $ 96 | $ 90 |
Commitments and Contingencie120
Commitments and Contingencies - Premium Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Maximum potential funding under commitments | $ 95 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017segmentrevenue_line | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 1 |
Number of revenue lines | revenue_line | 5 |
Segment Information - Schedule
Segment Information - Schedule of total revenue by business segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 2,909 | $ 2,340 | $ 2,368 | $ 2,381 | $ 2,650 | $ 2,201 | $ 2,282 | $ 2,276 | $ 9,998 | $ 9,409 | $ 9,480 |
Intersegment elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | (10) | (8) | (11) | ||||||||
Commercial Risk Solutions | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 4,169 | 3,929 | 4,029 | ||||||||
Reinsurance Solutions | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,429 | 1,361 | 1,358 | ||||||||
Retirement Solutions | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,755 | 1,707 | 1,916 | ||||||||
Health Solutions | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,515 | 1,370 | 1,167 | ||||||||
Data & Analytic Services | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 1,140 | $ 1,050 | $ 1,021 |
Segment Information - Schedu123
Segment Information - Schedule of consolidated revenue by geographic area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 2,909 | $ 2,340 | $ 2,368 | $ 2,381 | $ 2,650 | $ 2,201 | $ 2,282 | $ 2,276 | $ 9,998 | $ 9,409 | $ 9,480 |
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 4,425 | 3,981 | 3,924 | ||||||||
Americas other than U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 976 | 899 | 1,118 | ||||||||
U.K. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 1,436 | 1,354 | 1,419 | ||||||||
Europe, Middle East, & Africa | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 2,025 | 1,760 | 1,826 | ||||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 1,136 | $ 1,415 | $ 1,193 |
Segment Information - Schedu124
Segment Information - Schedule of consolidated non-current assets by geographic area (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Noncurrent assets | $ 564 | $ 550 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Noncurrent assets | 239 | 243 |
Americas other than U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Noncurrent assets | 47 | 60 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Noncurrent assets | 68 | 65 |
Europe, Middle East, & Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Noncurrent assets | 114 | 85 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Noncurrent assets | $ 96 | $ 97 |
Guarantee of Registered Secu125
Guarantee of Registered Securities - Narrative (Details) | Dec. 31, 2017 |
5.00% Senior Notes due September 2020 | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate on debt | 5.00% |
8.205% Junior Subordinated Deferrable Interest Debentures Percent Due 2027 | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate on debt | 8.205% |
6.25% Senior Notes due September 2040 | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate on debt | 6.25% |
4.250% Notes Due 2042 | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate on debt | 4.25% |
4.45% Senior Notes due May 2043 | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate on debt | 4.45% |
4.00% Senior Notes due November 2023 | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate on debt | 4.00% |
2.875% Senior Notes due May 2026 (EUR 500M) | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate on debt | 2.875% |
3.50% Senior Notes due June 2024 | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate on debt | 3.50% |
4.60% notes due May 2044 | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate on debt | 4.60% |
4.75% Senior Notes due May 2045 | Senior Notes | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate on debt | 4.75% |
2.80% Senior Notes due March 2021 | Senior Notes | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate on debt | 2.80% |
3.875% Senior Notes due December 2025 | Senior Notes | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate on debt | 3.875% |
Guarantee of Registered Secu126
Guarantee of Registered Securities - Condensed Consolidating Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | |||||||||||
Total revenue | $ 2,909 | $ 2,340 | $ 2,368 | $ 2,381 | $ 2,650 | $ 2,201 | $ 2,282 | $ 2,276 | $ 9,998 | $ 9,409 | $ 9,480 |
Expenses | |||||||||||
Compensation and benefits | 6,089 | 5,687 | 5,605 | ||||||||
Information technology | 419 | 386 | 389 | ||||||||
Premises | 348 | 343 | 362 | ||||||||
Depreciation of fixed assets | 187 | 162 | 164 | ||||||||
Amortization and impairment of intangible assets | 704 | 157 | 173 | ||||||||
Other general expenses | 1,272 | 1,036 | 1,200 | ||||||||
Total operating expenses | 9,019 | 7,771 | 7,893 | ||||||||
Operating income | 489 | 265 | (118) | 343 | 463 | 368 | 387 | 420 | 979 | 1,638 | 1,587 |
Interest income | 27 | 9 | 14 | ||||||||
Interest expense | (282) | (282) | (273) | ||||||||
Intercompany interest income (expense) | 0 | 0 | 0 | ||||||||
Intercompany other income (expense) | 0 | 0 | 0 | ||||||||
Other income (expense) | (39) | 36 | 100 | ||||||||
Income from continuing operations before income taxes | 685 | 1,401 | 1,428 | ||||||||
Income tax expense (benefit) | 250 | 148 | 175 | ||||||||
Net income from continuing operations | 17 | 196 | (43) | 265 | 384 | 284 | 273 | 312 | 435 | 1,253 | 1,253 |
Income from discontinued operations, net of tax | (29) | (4) | 821 | 40 | 75 | 42 | 35 | 25 | 828 | 177 | 169 |
Income (loss) before equity earnings of subsidiaries | 1,263 | 1,430 | 1,422 | ||||||||
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | ||||||||
Net income | (12) | 192 | 778 | 305 | 459 | 326 | 308 | 337 | 1,263 | 1,430 | 1,422 |
Less: Net income attributable to noncontrolling interests | 7 | 7 | 9 | 14 | 7 | 7 | 8 | 12 | 37 | 34 | 37 |
Net income attributable to Aon shareholders | $ (19) | $ 185 | $ 769 | $ 291 | $ 452 | $ 319 | $ 300 | $ 325 | 1,226 | 1,396 | 1,385 |
Aon plc | |||||||||||
Revenue | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Expenses | |||||||||||
Compensation and benefits | 150 | 130 | 136 | ||||||||
Information technology | 0 | 0 | 0 | ||||||||
Premises | 0 | 0 | 0 | ||||||||
Depreciation of fixed assets | 0 | 0 | 0 | ||||||||
Amortization and impairment of intangible assets | 0 | 0 | |||||||||
Other general expenses | 12 | 0 | 8 | ||||||||
Total operating expenses | 162 | 130 | 144 | ||||||||
Operating income | (162) | (130) | (144) | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | (202) | (196) | (140) | ||||||||
Intercompany interest income (expense) | 14 | 14 | 429 | ||||||||
Intercompany other income (expense) | 247 | 274 | 302 | ||||||||
Other income (expense) | (27) | 15 | (1) | ||||||||
Income from continuing operations before income taxes | (130) | (23) | 446 | ||||||||
Income tax expense (benefit) | (43) | (55) | 45 | ||||||||
Net income from continuing operations | (87) | 32 | 401 | ||||||||
Income from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
Income (loss) before equity earnings of subsidiaries | (87) | 32 | 401 | ||||||||
Equity in earnings of subsidiaries, net of tax | 1,295 | 1,382 | 984 | ||||||||
Net income | 1,208 | 1,414 | 1,385 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Aon shareholders | 1,208 | 1,414 | 1,385 | ||||||||
Aon Corporation | |||||||||||
Revenue | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Expenses | |||||||||||
Compensation and benefits | 35 | 171 | 32 | ||||||||
Information technology | 0 | 0 | 0 | ||||||||
Premises | 0 | 0 | 0 | ||||||||
Depreciation of fixed assets | 0 | 0 | 0 | ||||||||
Amortization and impairment of intangible assets | 0 | 0 | 0 | ||||||||
Other general expenses | (6) | 2 | 7 | ||||||||
Total operating expenses | 29 | 173 | 39 | ||||||||
Operating income | (29) | (173) | (39) | ||||||||
Interest income | 52 | 16 | 14 | ||||||||
Interest expense | (94) | (101) | (130) | ||||||||
Intercompany interest income (expense) | (543) | (541) | (479) | ||||||||
Intercompany other income (expense) | (411) | (361) | (422) | ||||||||
Other income (expense) | 21 | (5) | 0 | ||||||||
Income from continuing operations before income taxes | (1,004) | (1,165) | (1,056) | ||||||||
Income tax expense (benefit) | (110) | (325) | (262) | ||||||||
Net income from continuing operations | (894) | (840) | (794) | ||||||||
Income from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
Income (loss) before equity earnings of subsidiaries | (894) | (840) | (794) | ||||||||
Equity in earnings of subsidiaries, net of tax | 1,054 | 1,219 | 1,289 | ||||||||
Net income | 160 | 379 | 495 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Aon shareholders | 160 | 379 | 495 | ||||||||
Other Non-Guarantor Subsidiaries | |||||||||||
Revenue | |||||||||||
Total revenue | 9,998 | 9,409 | 9,480 | ||||||||
Expenses | |||||||||||
Compensation and benefits | 5,904 | 5,386 | 5,437 | ||||||||
Information technology | 419 | 386 | 389 | ||||||||
Premises | 348 | 343 | 362 | ||||||||
Depreciation of fixed assets | 187 | 162 | 164 | ||||||||
Amortization and impairment of intangible assets | 704 | 157 | 173 | ||||||||
Other general expenses | 1,266 | 1,034 | 1,185 | ||||||||
Total operating expenses | 8,828 | 7,468 | 7,710 | ||||||||
Operating income | 1,170 | 1,941 | 1,770 | ||||||||
Interest income | 4 | 22 | 19 | ||||||||
Interest expense | (15) | (14) | (22) | ||||||||
Intercompany interest income (expense) | 529 | 527 | 50 | ||||||||
Intercompany other income (expense) | 164 | 87 | 120 | ||||||||
Other income (expense) | (51) | 44 | 101 | ||||||||
Income from continuing operations before income taxes | 1,801 | 2,607 | 2,038 | ||||||||
Income tax expense (benefit) | 403 | 528 | 392 | ||||||||
Net income from continuing operations | 1,398 | 2,079 | 1,646 | ||||||||
Income from discontinued operations, net of tax | 828 | 177 | 169 | ||||||||
Income (loss) before equity earnings of subsidiaries | 2,226 | 2,256 | 1,815 | ||||||||
Equity in earnings of subsidiaries, net of tax | 160 | 379 | 495 | ||||||||
Net income | 2,386 | 2,635 | 2,310 | ||||||||
Less: Net income attributable to noncontrolling interests | 37 | 34 | 37 | ||||||||
Net income attributable to Aon shareholders | 2,349 | 2,601 | 2,273 | ||||||||
Consolidating Adjustments | |||||||||||
Revenue | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Expenses | |||||||||||
Compensation and benefits | 0 | 0 | 0 | ||||||||
Information technology | 0 | 0 | 0 | ||||||||
Premises | 0 | 0 | 0 | ||||||||
Depreciation of fixed assets | 0 | 0 | 0 | ||||||||
Amortization and impairment of intangible assets | 0 | 0 | 0 | ||||||||
Other general expenses | 0 | 0 | 0 | ||||||||
Total operating expenses | 0 | 0 | 0 | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
Interest income | (29) | (29) | (19) | ||||||||
Interest expense | 29 | 29 | 19 | ||||||||
Intercompany interest income (expense) | 0 | 0 | 0 | ||||||||
Intercompany other income (expense) | 0 | 0 | 0 | ||||||||
Other income (expense) | 18 | (18) | 0 | ||||||||
Income from continuing operations before income taxes | 18 | (18) | 0 | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Net income from continuing operations | 18 | (18) | 0 | ||||||||
Income from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
Income (loss) before equity earnings of subsidiaries | 18 | (18) | 0 | ||||||||
Equity in earnings of subsidiaries, net of tax | (2,509) | (2,980) | (2,768) | ||||||||
Net income | (2,491) | (2,998) | (2,768) | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Aon shareholders | $ (2,491) | $ (2,998) | $ (2,768) |
Guarantee of Registered Secu127
Guarantee of Registered Securities - Condensed Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ (12) | $ 192 | $ 778 | $ 305 | $ 459 | $ 326 | $ 308 | $ 337 | $ 1,263 | $ 1,430 | $ 1,422 |
Less: Net income attributable to noncontrolling interests | 7 | 7 | 9 | 14 | 7 | 7 | 8 | 12 | 37 | 34 | 37 |
Net income attributable to Aon shareholders | $ (19) | $ 185 | $ 769 | $ 291 | $ 452 | $ 319 | $ 300 | $ 325 | 1,226 | 1,396 | 1,385 |
Change in fair value of financial instruments | (8) | ||||||||||
Net change in fair value of financial instruments | 12 | (12) | (8) | ||||||||
Foreign currency translation adjustments | 390 | (495) | (442) | ||||||||
Postretirement benefit obligation | 19 | 16 | 155 | ||||||||
Total other comprehensive income (loss) | 421 | (491) | (295) | ||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | 0 | 0 | 0 | ||||||||
Less: Other comprehensive income attributable to noncontrolling interests | 5 | (2) | (6) | ||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | 416 | (489) | (289) | ||||||||
Comprehensive income attributable to Aon shareholders | 1,642 | 907 | 1,096 | ||||||||
Aon plc | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 1,208 | 1,414 | 1,385 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Aon shareholders | 1,208 | 1,414 | 1,385 | ||||||||
Change in fair value of financial instruments | 0 | ||||||||||
Net change in fair value of financial instruments | 0 | 0 | |||||||||
Foreign currency translation adjustments | 0 | (2) | 0 | ||||||||
Postretirement benefit obligation | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss) | 0 | (2) | 0 | ||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | 434 | (505) | (289) | ||||||||
Less: Other comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | 434 | (507) | (289) | ||||||||
Comprehensive income attributable to Aon shareholders | 1,642 | 907 | 1,096 | ||||||||
Aon Corporation | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 160 | 379 | 495 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Aon shareholders | 160 | 379 | 495 | ||||||||
Change in fair value of financial instruments | 0 | ||||||||||
Net change in fair value of financial instruments | 3 | (1) | |||||||||
Foreign currency translation adjustments | 0 | 21 | (47) | ||||||||
Postretirement benefit obligation | (101) | 68 | 12 | ||||||||
Total other comprehensive income (loss) | (98) | 88 | (35) | ||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | 515 | (547) | (259) | ||||||||
Less: Other comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | 417 | (459) | (294) | ||||||||
Comprehensive income attributable to Aon shareholders | 577 | (80) | 201 | ||||||||
Other Non-Guarantor Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 2,386 | 2,635 | 2,310 | ||||||||
Less: Net income attributable to noncontrolling interests | 37 | 34 | 37 | ||||||||
Net income attributable to Aon shareholders | 2,349 | 2,601 | 2,273 | ||||||||
Change in fair value of financial instruments | (8) | ||||||||||
Net change in fair value of financial instruments | 9 | (11) | |||||||||
Foreign currency translation adjustments | 408 | (532) | (395) | ||||||||
Postretirement benefit obligation | 120 | (52) | 143 | ||||||||
Total other comprehensive income (loss) | 537 | (595) | (260) | ||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | 417 | (459) | (294) | ||||||||
Less: Other comprehensive income attributable to noncontrolling interests | 5 | (2) | (6) | ||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | 949 | (1,052) | (548) | ||||||||
Comprehensive income attributable to Aon shareholders | 3,298 | 1,549 | 1,725 | ||||||||
Consolidating Adjustments | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | (2,491) | (2,998) | (2,768) | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Aon shareholders | (2,491) | (2,998) | (2,768) | ||||||||
Change in fair value of financial instruments | 0 | ||||||||||
Net change in fair value of financial instruments | 0 | 0 | |||||||||
Foreign currency translation adjustments | (18) | 18 | 0 | ||||||||
Postretirement benefit obligation | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss) | (18) | 18 | 0 | ||||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax | (1,366) | 1,511 | 842 | ||||||||
Less: Other comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | (1,384) | 1,529 | 842 | ||||||||
Comprehensive income attributable to Aon shareholders | $ (3,875) | $ (1,469) | $ (1,926) |
Guarantee of Registered Secu128
Guarantee of Registered Securities - Condensed Consolidating Statement of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Total Current Assets | ||||
Cash and cash equivalents | $ 756 | $ 426 | ||
Short-term investments | 529 | 290 | ||
Receivables, net | 2,478 | 2,106 | ||
Fiduciary assets | 9,625 | 8,959 | ||
Intercompany receivables | 0 | 0 | ||
Other current assets | 289 | 247 | ||
Current assets of discontinued operations | 0 | 1,118 | ||
Total Current Assets | 13,677 | 13,146 | ||
Goodwill | 8,358 | 7,410 | $ 7,068 | |
Intangible assets, net | 1,733 | 1,890 | ||
Fixed assets, net | 564 | 550 | ||
Deferred tax assets | 389 | 325 | ||
Deferred tax asset | 0 | 0 | ||
Prepaid pension | 1,060 | 858 | ||
Other non-current assets | 307 | 360 | ||
Investment in subsidiary | 0 | 0 | ||
Non-current assets of discontinued operations | 0 | 2,076 | ||
TOTAL ASSETS | 26,088 | 26,615 | ||
CURRENT LIABILITIES | ||||
Accounts payable and accrued liabilities | 1,961 | 1,604 | ||
Short-term debt and current portion of long-term debt | 299 | 336 | ||
Fiduciary liabilities | 9,625 | 8,959 | ||
Intercompany payables | 0 | 0 | ||
Other current liabilities | 870 | 656 | ||
Current liabilities of discontinued operations | 0 | 940 | ||
Total Current Liabilities | 12,755 | 12,495 | ||
Long-term debt | 5,667 | 5,869 | ||
Deferred tax liabilities | 127 | 101 | ||
Pension, other postretirement and other post-employment liabilities | 1,789 | 1,760 | ||
Intercompany payables | 0 | 0 | ||
Other non-current liabilities | 1,102 | 719 | ||
Non-current liabilities of discontinued operations | 0 | 139 | ||
TOTAL LIABILITIES | 21,440 | 21,083 | ||
TOTAL AON SHAREHOLDERS’ EQUITY | 4,583 | 5,475 | ||
Noncontrolling interests | 65 | 57 | ||
TOTAL EQUITY | 4,648 | 5,532 | $ 6,059 | $ 6,527 |
TOTAL LIABILITIES AND EQUITY | 26,088 | 26,615 | ||
Aon plc | ||||
Total Current Assets | ||||
Cash and cash equivalents | 1 | 0 | ||
Short-term investments | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Fiduciary assets | 0 | 0 | ||
Intercompany receivables | 165 | 105 | ||
Other current assets | 1 | 0 | ||
Current assets of discontinued operations | 0 | 0 | ||
Total Current Assets | 167 | 105 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Deferred tax assets | 99 | 134 | ||
Deferred tax asset | 414 | 366 | ||
Prepaid pension | 0 | 0 | ||
Other non-current assets | 1 | 2 | ||
Investment in subsidiary | 8,884 | 10,107 | ||
Non-current assets of discontinued operations | 0 | 0 | ||
TOTAL ASSETS | 9,565 | 10,714 | ||
CURRENT LIABILITIES | ||||
Accounts payable and accrued liabilities | 574 | 585 | ||
Short-term debt and current portion of long-term debt | 0 | 279 | ||
Fiduciary liabilities | 0 | 0 | ||
Intercompany payables | 130 | 142 | ||
Other current liabilities | 16 | 0 | ||
Current liabilities of discontinued operations | 0 | 0 | ||
Total Current Liabilities | 720 | 1,006 | ||
Long-term debt | 4,251 | 4,177 | ||
Deferred tax liabilities | 0 | 0 | ||
Pension, other postretirement and other post-employment liabilities | 0 | 0 | ||
Intercompany payables | 0 | 0 | ||
Other non-current liabilities | 11 | 8 | ||
Non-current liabilities of discontinued operations | 0 | 0 | ||
TOTAL LIABILITIES | 4,982 | 5,191 | ||
TOTAL AON SHAREHOLDERS’ EQUITY | 4,583 | 5,523 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL EQUITY | 4,583 | 5,523 | ||
TOTAL LIABILITIES AND EQUITY | 9,565 | 10,714 | ||
Aon Corporation | ||||
Total Current Assets | ||||
Cash and cash equivalents | 2,524 | 1,633 | ||
Short-term investments | 355 | 140 | ||
Receivables, net | 2 | 3 | ||
Fiduciary assets | 0 | 0 | ||
Intercompany receivables | 1,046 | 1,880 | ||
Other current assets | 29 | 25 | ||
Current assets of discontinued operations | 0 | 0 | ||
Total Current Assets | 3,956 | 3,681 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Deferred tax assets | 396 | 726 | ||
Deferred tax asset | 261 | 261 | ||
Prepaid pension | 6 | 5 | ||
Other non-current assets | 35 | 119 | ||
Investment in subsidiary | 17,910 | 17,131 | ||
Non-current assets of discontinued operations | 0 | 0 | ||
TOTAL ASSETS | 22,564 | 21,923 | ||
CURRENT LIABILITIES | ||||
Accounts payable and accrued liabilities | 36 | 44 | ||
Short-term debt and current portion of long-term debt | 0 | 50 | ||
Fiduciary liabilities | 0 | 0 | ||
Intercompany payables | 11,149 | 10,399 | ||
Other current liabilities | 64 | 63 | ||
Current liabilities of discontinued operations | 0 | 0 | ||
Total Current Liabilities | 11,249 | 10,556 | ||
Long-term debt | 1,415 | 1,413 | ||
Deferred tax liabilities | 0 | 0 | ||
Pension, other postretirement and other post-employment liabilities | 1,391 | 1,356 | ||
Intercompany payables | 8,398 | 8,877 | ||
Other non-current liabilities | 91 | 77 | ||
Non-current liabilities of discontinued operations | 0 | 0 | ||
TOTAL LIABILITIES | 22,544 | 22,279 | ||
TOTAL AON SHAREHOLDERS’ EQUITY | 20 | (356) | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL EQUITY | 20 | (356) | ||
TOTAL LIABILITIES AND EQUITY | 22,564 | 21,923 | ||
Other Non-Guarantor Subsidiaries | ||||
Total Current Assets | ||||
Cash and cash equivalents | 793 | 655 | ||
Short-term investments | 174 | 150 | ||
Receivables, net | 2,476 | 2,103 | ||
Fiduciary assets | 9,625 | 8,959 | ||
Intercompany receivables | 10,824 | 9,825 | ||
Other current assets | 259 | 222 | ||
Current assets of discontinued operations | 0 | 1,118 | ||
Total Current Assets | 24,151 | 23,032 | ||
Goodwill | 8,358 | 7,410 | ||
Intangible assets, net | 1,733 | 1,890 | ||
Fixed assets, net | 564 | 550 | ||
Deferred tax assets | 143 | 171 | ||
Deferred tax asset | 8,232 | 8,711 | ||
Prepaid pension | 1,054 | 853 | ||
Other non-current assets | 271 | 239 | ||
Investment in subsidiary | 20 | (356) | ||
Non-current assets of discontinued operations | 0 | 2,076 | ||
TOTAL ASSETS | 44,526 | 44,576 | ||
CURRENT LIABILITIES | ||||
Accounts payable and accrued liabilities | 3,913 | 2,837 | ||
Short-term debt and current portion of long-term debt | 299 | 7 | ||
Fiduciary liabilities | 9,625 | 8,959 | ||
Intercompany payables | 756 | 1,269 | ||
Other current liabilities | 790 | 593 | ||
Current liabilities of discontinued operations | 0 | 940 | ||
Total Current Liabilities | 15,383 | 14,605 | ||
Long-term debt | 1 | 279 | ||
Deferred tax liabilities | 376 | 759 | ||
Pension, other postretirement and other post-employment liabilities | 398 | 404 | ||
Intercompany payables | 509 | 461 | ||
Other non-current liabilities | 1,000 | 634 | ||
Non-current liabilities of discontinued operations | 0 | 139 | ||
TOTAL LIABILITIES | 17,667 | 17,281 | ||
TOTAL AON SHAREHOLDERS’ EQUITY | 26,794 | 27,238 | ||
Noncontrolling interests | 65 | 57 | ||
TOTAL EQUITY | 26,859 | 27,295 | ||
TOTAL LIABILITIES AND EQUITY | 44,526 | 44,576 | ||
Consolidating Adjustments | ||||
Total Current Assets | ||||
Cash and cash equivalents | (2,562) | (1,862) | ||
Short-term investments | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Fiduciary assets | 0 | 0 | ||
Intercompany receivables | (12,035) | (11,810) | ||
Other current assets | 0 | 0 | ||
Current assets of discontinued operations | 0 | 0 | ||
Total Current Assets | (14,597) | (13,672) | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Deferred tax assets | (249) | (706) | ||
Deferred tax asset | (8,907) | (9,338) | ||
Prepaid pension | 0 | 0 | ||
Other non-current assets | 0 | 0 | ||
Investment in subsidiary | (26,814) | (26,882) | ||
Non-current assets of discontinued operations | 0 | 0 | ||
TOTAL ASSETS | (50,567) | (50,598) | ||
CURRENT LIABILITIES | ||||
Accounts payable and accrued liabilities | (2,562) | (1,862) | ||
Short-term debt and current portion of long-term debt | 0 | 0 | ||
Fiduciary liabilities | 0 | 0 | ||
Intercompany payables | (12,035) | (11,810) | ||
Other current liabilities | 0 | 0 | ||
Current liabilities of discontinued operations | 0 | 0 | ||
Total Current Liabilities | (14,597) | (13,672) | ||
Long-term debt | 0 | 0 | ||
Deferred tax liabilities | (249) | (658) | ||
Pension, other postretirement and other post-employment liabilities | 0 | 0 | ||
Intercompany payables | (8,907) | (9,338) | ||
Other non-current liabilities | 0 | 0 | ||
Non-current liabilities of discontinued operations | 0 | 0 | ||
TOTAL LIABILITIES | (23,753) | (23,668) | ||
TOTAL AON SHAREHOLDERS’ EQUITY | (26,814) | (26,930) | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL EQUITY | (26,814) | (26,930) | ||
TOTAL LIABILITIES AND EQUITY | $ (50,567) | $ (50,598) |
Guarantee of Registered Secu129
Guarantee of Registered Securities - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Cash provided by (used for) operating activities - continuing operations | $ 669 | $ 1,829 | $ 1,502 | |
Cash provided by operating activities - discontinued operations | 65 | 497 | 507 | |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 734 | 2,326 | 2,009 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from investments | 68 | 43 | 220 | |
Payments for investments | (64) | (64) | (266) | |
Net purchases (sales) of short-term investments - non-fiduciary | (232) | 61 | 9 | |
Acquisition of businesses, net of cash acquired | (1,029) | (879) | (16) | |
Sale of businesses, net of cash sold | 4,246 | 107 | 205 | |
Capital expenditures | (183) | (156) | (200) | |
Cash provided by (used for) investing activities - continuing operations | 2,806 | (888) | (48) | |
Cash provided by (used for) investing activities - discontinued operations | (19) | (66) | (90) | |
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | 2,787 | (954) | (138) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Share repurchase | (2,399) | (1,257) | (1,550) | |
Advances from (to) affiliates | 0 | 0 | 0 | |
Issuance of shares for employee benefit plans | (121) | (129) | (30) | |
Issuance of debt | 1,654 | 3,467 | 5,351 | |
Repayment of debt | (1,999) | (2,945) | (5,098) | |
Cash dividends to shareholders | (364) | (345) | (323) | |
Noncontrolling interests and other financing activities | (36) | (77) | (39) | |
Cash provided by (used for) financing activities - continuing operations | (3,265) | (1,286) | (1,689) | |
Cash used for financing activities - discontinued operations | 0 | 0 | 0 | |
CASH USED FOR FINANCING ACTIVITIES | (3,265) | (1,286) | (1,689) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 69 | (39) | (172) | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 325 | 47 | 10 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 431 | 384 | 374 | |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 756 | 431 | 384 | |
Cash and cash equivalents of discontinued operations | 0 | 5 | 2 | $ 4 |
Aon plc | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Cash provided by (used for) operating activities - continuing operations | 2,787 | 2,705 | 695 | |
Cash provided by operating activities - discontinued operations | 0 | 0 | 0 | |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 2,787 | 2,705 | 695 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from investments | 224 | 0 | 0 | |
Payments for investments | (261) | 0 | (13) | |
Net purchases (sales) of short-term investments - non-fiduciary | 0 | 0 | 0 | |
Acquisition of businesses, net of cash acquired | 0 | 0 | 0 | |
Sale of businesses, net of cash sold | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | |
Cash provided by (used for) investing activities - continuing operations | (37) | 0 | (13) | |
Cash provided by (used for) investing activities - discontinued operations | 0 | 0 | 0 | |
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | (37) | 0 | (13) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Share repurchase | (2,399) | (1,257) | (1,550) | |
Advances from (to) affiliates | 426 | (2,008) | 232 | |
Issuance of shares for employee benefit plans | (121) | (129) | (29) | |
Issuance of debt | 544 | 1,879 | 1,318 | |
Repayment of debt | (835) | (845) | (330) | |
Cash dividends to shareholders | (364) | (345) | (323) | |
Noncontrolling interests and other financing activities | 0 | 0 | ||
Cash provided by (used for) financing activities - continuing operations | (2,749) | (2,705) | (682) | |
Cash used for financing activities - discontinued operations | 0 | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | (2,749) | (2,705) | (682) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 | 0 | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1 | 0 | 0 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 0 | 0 | 0 | |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 1 | 0 | 0 | |
Aon Corporation | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Cash provided by (used for) operating activities - continuing operations | 503 | (536) | 464 | |
Cash provided by operating activities - discontinued operations | 0 | 0 | 0 | |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 503 | (536) | 464 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from investments | 587 | 316 | 27 | |
Payments for investments | (29) | (35) | (47) | |
Net purchases (sales) of short-term investments - non-fiduciary | (215) | 70 | (42) | |
Acquisition of businesses, net of cash acquired | 0 | (335) | 0 | |
Sale of businesses, net of cash sold | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | |
Cash provided by (used for) investing activities - continuing operations | 343 | 16 | (62) | |
Cash provided by (used for) investing activities - discontinued operations | 0 | 0 | 0 | |
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | 343 | 16 | (62) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Share repurchase | 0 | 0 | 0 | |
Advances from (to) affiliates | 95 | 570 | (326) | |
Issuance of shares for employee benefit plans | 0 | 0 | 0 | |
Issuance of debt | 1,100 | 1,588 | 4,026 | |
Repayment of debt | (1,150) | (2,088) | (4,746) | |
Cash dividends to shareholders | 0 | 0 | 0 | |
Noncontrolling interests and other financing activities | 0 | 0 | 0 | |
Cash provided by (used for) financing activities - continuing operations | 45 | 70 | (1,046) | |
Cash used for financing activities - discontinued operations | 0 | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | 45 | 70 | (1,046) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 | 0 | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 891 | (450) | (644) | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,633 | 2,083 | 2,727 | |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 2,524 | 1,633 | 2,083 | |
Other Non-Guarantor Subsidiaries | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Cash provided by (used for) operating activities - continuing operations | 2,010 | 2,768 | 2,016 | |
Cash provided by operating activities - discontinued operations | 65 | 497 | 507 | |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 2,075 | 3,265 | 2,523 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from investments | 582 | 15 | 193 | |
Payments for investments | (576) | (29) | (219) | |
Net purchases (sales) of short-term investments - non-fiduciary | (17) | (9) | 51 | |
Acquisition of businesses, net of cash acquired | (1,029) | (608) | (16) | |
Sale of businesses, net of cash sold | 4,246 | 171 | 205 | |
Capital expenditures | (183) | (156) | (200) | |
Cash provided by (used for) investing activities - continuing operations | 3,023 | (616) | 14 | |
Cash provided by (used for) investing activities - discontinued operations | (19) | (66) | (90) | |
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | 3,004 | (682) | (76) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Share repurchase | 0 | 0 | 0 | |
Advances from (to) affiliates | (4,975) | (3,037) | (2,339) | |
Issuance of shares for employee benefit plans | 0 | 0 | (1) | |
Issuance of debt | 10 | 0 | 7 | |
Repayment of debt | (14) | (12) | (22) | |
Cash dividends to shareholders | 0 | 0 | 0 | |
Noncontrolling interests and other financing activities | (36) | (77) | (39) | |
Cash provided by (used for) financing activities - continuing operations | (5,015) | (3,126) | (2,394) | |
Cash used for financing activities - discontinued operations | 0 | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | (5,015) | (3,126) | (2,394) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 69 | (39) | (172) | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 133 | (582) | (119) | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 660 | 1,242 | 1,361 | |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 793 | 660 | 1,242 | |
Consolidating Adjustments | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Cash provided by (used for) operating activities - continuing operations | (4,631) | (3,108) | (1,673) | |
Cash provided by operating activities - discontinued operations | 0 | 0 | 0 | |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | (4,631) | (3,108) | (1,673) | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Proceeds from investments | (1,325) | (288) | 0 | |
Payments for investments | 802 | 0 | 13 | |
Net purchases (sales) of short-term investments - non-fiduciary | 0 | 0 | 0 | |
Acquisition of businesses, net of cash acquired | 0 | 64 | 0 | |
Sale of businesses, net of cash sold | 0 | (64) | 0 | |
Capital expenditures | 0 | 0 | 0 | |
Cash provided by (used for) investing activities - continuing operations | (523) | (288) | 13 | |
Cash provided by (used for) investing activities - discontinued operations | 0 | 0 | 0 | |
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | (523) | (288) | 13 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Share repurchase | 0 | 0 | 0 | |
Advances from (to) affiliates | 4,454 | 4,475 | 2,433 | |
Issuance of shares for employee benefit plans | 0 | 0 | 0 | |
Issuance of debt | 0 | 0 | 0 | |
Repayment of debt | 0 | 0 | 0 | |
Cash dividends to shareholders | 0 | 0 | 0 | |
Noncontrolling interests and other financing activities | 0 | 0 | 0 | |
Cash provided by (used for) financing activities - continuing operations | 4,454 | 4,475 | 2,433 | |
Cash used for financing activities - discontinued operations | 0 | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | 4,454 | 4,475 | 2,433 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 | 0 | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | (700) | 1,079 | 773 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | (1,862) | (2,941) | (3,714) | |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ (2,562) | $ (1,862) | $ (2,941) |
Quarterly Financial Data (Un130
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 2,909 | $ 2,340 | $ 2,368 | $ 2,381 | $ 2,650 | $ 2,201 | $ 2,282 | $ 2,276 | $ 9,998 | $ 9,409 | $ 9,480 |
Operating income | 489 | 265 | (118) | 343 | 463 | 368 | 387 | 420 | 979 | 1,638 | 1,587 |
Net income from continuing operations | 17 | 196 | (43) | 265 | 384 | 284 | 273 | 312 | 435 | 1,253 | 1,253 |
Income from discontinued operations, net of tax | (29) | (4) | 821 | 40 | 75 | 42 | 35 | 25 | 828 | 177 | 169 |
Net income | (12) | 192 | 778 | 305 | 459 | 326 | 308 | 337 | 1,263 | 1,430 | 1,422 |
Less: Net income attributable to noncontrolling interests | 7 | 7 | 9 | 14 | 7 | 7 | 8 | 12 | 37 | 34 | 37 |
Net income attributable to Aon shareholders | $ (19) | $ 185 | $ 769 | $ 291 | $ 452 | $ 319 | $ 300 | $ 325 | $ 1,226 | $ 1,396 | $ 1,385 |
Basic net income per share attributable to Aon shareholders | |||||||||||
Basic net income per share attributable to Aon shareholders, continuing operations (in dollars per share) | $ 0.04 | $ 0.74 | $ (0.20) | $ 0.95 | $ 1.42 | $ 1.03 | $ 0.99 | $ 1.11 | $ 1.54 | $ 4.55 | $ 4.33 |
Basic net income per share attributable to Aon shareholders, discontinued operations (in dollars per share) | (0.12) | (0.02) | 3.13 | 0.15 | 0.28 | 0.16 | 0.13 | 0.09 | 3.20 | 0.66 | 0.60 |
Basic net income per share attributable to Aon shareholders (in dollars per share) | (0.08) | 0.72 | 2.93 | 1.10 | 1.70 | 1.19 | 1.12 | 1.20 | 4.74 | 5.21 | 4.93 |
Diluted net income per share attributable to Aon shareholders | |||||||||||
Diluted net income per share attributable to Aon shareholders, continuing operations (in dollars per share) | 0.04 | 0.73 | (0.20) | 0.94 | 1.40 | 1.03 | 0.98 | 1.10 | 1.53 | 4.51 | 4.28 |
Diluted net income per share attributable to Aon shareholders, discontinued operations (in dollars per share) | (0.11) | (0.01) | 3.13 | 0.15 | 0.28 | 0.15 | 0.13 | 0.09 | 3.17 | 0.65 | 0.60 |
Diluted net income per share attributable to Aon shareholders (in dollars per share) | $ (0.07) | $ 0.72 | $ 2.93 | $ 1.09 | $ 1.68 | $ 1.18 | $ 1.11 | $ 1.19 | $ 4.70 | $ 5.16 | $ 4.88 |