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Other Financial Data

12 Months Ended

Dec. 31, 2019

Consolidated Statements of Income Information

Other Income (Expense)

The components of Other income (expense) are as follows (in millions):



	Years ended December 31
	2019			2018			2017
Foreign currency remeasurement	$	9		$	25		$	(37	)
Disposal of businesses	13			(6		)	(16		)
Pension and other postretirement	9			1			(86		)
Equity earnings	4			4			12
Financial instruments	(34		)	(49		)	2
Total	$	1		$	(25	)	$	(125	)

Consolidated Statements of Financial Position Information

Allowance for Doubtful Accounts

Changes in the net carrying amount of allowance for doubtful accounts are as follows (in millions):



	2019			2018			2017
Balance at beginning of period	$	62		$	59		$	56
Provision	27			24			18
Accounts written off, net of recoveries	(19		)	(25		)	(18		)
Foreign currency translation and other	—			4			3
Balance at end of period	$	70		$	62		$	59

Other Current Assets

The components of Other current assets are as follows (in millions):



As of December 31	2019		2018
Costs to fulfill contracts with customers	$	335	$	329
Taxes receivable	88		113
Prepaid expenses	97		97
Receivables from the Divested Business⁽¹⁾	4		12
Other	78		67
Total	$	602	$	618


(1)	Refer to Note 5 “Discontinued Operations” for further information.

Fixed Assets, net

The components of Fixed assets, net are as follows (in millions):



As of December 31	2019		2018
Software	$	727	$	693
Leasehold improvements	358		334
Computer equipment	250		279
Furniture, fixtures and equipment	225		228
Construction in progress	183		154
Other	37		45
Fixed assets, gross	1,780		1,733
Less: Accumulated depreciation	1,159		1,145
Fixed assets, net	$	621	$	588

Depreciation expense, which includes software amortization, was $172 million, $176 million, and $187 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Other Non-current Assets

The components of Other non-current assets are as follows (in millions):



As of December 31	2019		2018
Costs to obtain contracts with customers	$	171	$	156
Investments	53		54
Leases ⁽¹⁾	100		—
Taxes receivable	102		100
Other	144		138
Total	$	570	$	448

(1)

In the first quarter of 2019, Aon adopted new accounting guidance related to the treatment of leases which was applied under the modified retrospective approach. The Other non-current asset balances related to leasing under the legacy accounting standard are reflected in Other as reported in December 31, 2018. Refer to Note 2 “Summary of Significant Accounting Principles and Practices” for further information.

Other Current Liabilities

The components of Other current liabilities are as follows (in millions):



As of December 31	2019		2018
Deferred revenue ⁽¹⁾	$	270	$	251
Taxes payable	93		83
Leases ⁽²⁾	210		—
Other	513		602
Total	$	1,086	$	936


(1)	$532 million and $487 million was recognized in the Consolidated Statements of Income during the twelve months ended December 31, 2019 and December 31, 2018, respectively.

(2)

In the first quarter of 2019, Aon adopted new accounting guidance related to the treatment of leases which was applied under the modified retrospective approach. The Other current liability balances related to leasing under the legacy accounting standard are reflected in Other as reported in December 31, 2018. Refer to Note 2 “Summary of Significant Accounting Principles and Practices” for further information.

Other Non-current Liabilities

The components of Other non-current liabilities are as follows (in millions):



As of December 31	2019		2018
Taxes payable ⁽¹⁾	$	525	$	585
Leases ⁽²⁾	76		169
Compensation and benefits	49		56
Deferred revenue	62		65
Other	165		222
Total	$	877	$	1,097


(1)	Includes $145 million and $240 million for the non-current portion of the Transition Tax, as of December 31, 2019 and December 31, 2018, respectively. Refer to Note 11 “Income Taxes” for further information on the Transition Tax.

(2)

In the first quarter of 2019, Aon adopted new accounting guidance related to the treatment of leases which was applied under the modified retrospective approach. The comparable period presented reflects balances under the legacy accounting standard. Refer to Note 2 “Summary of Significant Accounting Principles and Practices” for further information.