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Guarantee of Registered Securities
3 Months Ended
Mar. 31, 2014
Guarantee of Registered Securities [Abstract]  
Guarantee of Registered Securities
Guarantee of Registered Securities
 
As described in Note 16, in connection with the Redomestication, Aon plc entered into various agreements pursuant to which it agreed to guarantee the obligations of Aon Corporation arising under issued and outstanding debt securities. Aon Corporation is a 100% directly owned subsidiary of Aon plc. The debt securities that are subject to Rule 3-10 of Regulation S-X are the 3.50% senior notes due September 2015, the 3.125% senior notes due May 2016, the 5.00% senior notes due September 2020, the 8.205% junior subordinated deferrable interest debentures due January 2027 and the 6.25% senior notes due September 2040. All guarantees of Aon plc are full and unconditional. There are no other subsidiaries of Aon plc that are guarantors of the debt.

Aon Corporation entered into an agreement pursuant to which it agreed to guarantee the obligations of Aon plc arising under the 4.250% Notes Due 2042 exchanged for Aon Corporation's outstanding 8.205% junior subordinated deferrable interest debentures due January 2027 in both Original Notes and Exchange Notes form. Those notes are subject to Rule 3-10 of Regulation S-X. Aon Corporation also agreed to guarantee the obligations of Aon plc arising under the 4.45% Notes Due 2043 issued on May 21, 2013 and the 4.00% Notes Due November 2023 issued on November 21, 2013. In each case, the guarantee of Aon Corporation is full and unconditional. There are no subsidiaries of Aon plc, other than Aon Corporation, that are guarantors of the 4.250% Notes Due 2042, the 4.45% Notes Due 2043 or the 4.00% Notes Due 2023.
 
The following tables set forth condensed consolidating statements of income for the three months ended March 31, 2014 and 2013, condensed consolidating statements of comprehensive income for the three months ended March 31, 2014 and 2013, condensed consolidating statements of financial position as of March 31, 2014 and December 31, 2013, and condensed consolidating statements of cash flows for the three months ended March 31, 2014 and 2013 in accordance with Rule 3-10 of Regulation S-X. The condensed consolidating financial information includes the accounts of Aon plc, the accounts of Aon Corporation, and the combined accounts of the non-guarantor subsidiaries. The condensed consolidating financial statements are presented in all periods as a merger under common control, with Aon plc presented as the parent company in all periods prior and subsequent to the Redomestication. The principal consolidating adjustments are to eliminate the investment in subsidiaries and intercompany balances and transactions.

In July 2013, Aon Holdings LLC, an intermediate holding company and the then-direct parent of Aon Corporation, transferred its ownership of Aon Corporation to Aon plc via distribution. The financial results of Aon Holdings LLC were included in the Other Non-Guarantor Subsidiaries column of the Condensed Consolidating Financial Statements. The Company has reflected the transfer of Aon Corporation from Aon Holdings LLC to Aon plc below for all periods presented.

Condensed Consolidating Statement of Income
 
 
Three months ended March 31, 2014
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Commissions, fees and other
 
$
1

 
$

 
$
2,940

 
$

 
$
2,941

Fiduciary investment income
 

 

 
6

 

 
6

Total revenue
 
1

 

 
2,946

 

 
2,947

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
12

 
8

 
1,731

 

 
1,751

Other general expenses
 
7

 
17

 
703

 

 
727

Total operating expenses
 
19

 
25

 
2,434

 

 
2,478

Operating (loss) income
 
(18
)
 
(25
)
 
512

 

 
469

Interest income
 
(2
)
 

 
4

 

 
2

Interest expense
 
(9
)
 
(31
)
 
(18
)
 

 
(58
)
Intercompany interest income (expense)
 
111

 
(74
)
 
(37
)
 

 

Other income
 

 

 
1

 

 
1

Income (loss) before taxes
 
82

 
(130
)
 
462

 

 
414

Income tax (benefit) expense
 
20

 
(50
)
 
108

 

 
78

Income (loss) before equity in earnings of subsidiaries
 
62

 
(80
)
 
354

 

 
336

Equity in earnings of subsidiaries, net of tax
 
263

 
280

 

 
(543
)
 

Net income
 
325

 
200

 
354

 
(543
)
 
336

Less: Net income attributable to noncontrolling interests
 

 

 
11

 

 
11

Net income attributable to Aon shareholders
 
$
325

 
$
200

 
$
343

 
$
(543
)
 
$
325



Condensed Consolidating Statement of Income 
 
 
Three months ended March 31, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Commissions, fees and other
 
$
1

 
$

 
$
2,907

 
$

 
$
2,908

Fiduciary investment income
 

 

 
7

 

 
7

Total revenue
 
1

 

 
2,914

 

 
2,915

Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
11

 
15

 
1,699

 

 
1,725

Other general expenses
 
7

 
6

 
767

 

 
780

Total operating expenses
 
18

 
21

 
2,466

 

 
2,505

Operating (loss) income
 
(17
)
 
(21
)
 
448

 

 
410

Interest income
 

 
1

 

 

 
1

Interest expense
 
(2
)
 
(34
)
 
(16
)
 

 
(52
)
Intercompany interest (expense) income
 
(7
)
 
43

 
(36
)
 

 

Other (expense) income
 

 
(1
)
 
10

 

 
9

(Loss) income before taxes
 
(26
)
 
(12
)
 
406

 

 
368

Income tax (benefit) expense
 
(5
)
 
(5
)
 
106

 

 
96

(Loss) income before equity in earnings of subsidiaries
 
(21
)
 
(7
)
 
300

 

 
272

Equity in earnings of subsidiaries, net of tax
 
282

 
254

 

 
(536
)
 

Net income
 
261

 
247

 
300

 
(536
)
 
272

Less: Net income attributable to noncontrolling interests
 

 

 
11

 

 
11

Net income attributable to Aon shareholders
 
$
261

 
$
247

 
$
289

 
$
(536
)
 
$
261










Condensed Consolidating Statement of Comprehensive Income
 
 
Three months ended March 31, 2014
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income
 
$
325

 
$
200

 
$
354

 
$
(543
)
 
$
336

Less: Net income attributable to noncontrolling interests
 

 

 
11

 

 
11

Net income attributable to Aon shareholders
 
$
325

 
$
200

 
$
343

 
$
(543
)
 
$
325

Other comprehensive (loss) income, net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of investments
 

 

 
1

 

 
1

Change in fair value of derivatives
 

 
1

 
8

 

 
9

Foreign currency translation adjustments
 

 
(17
)
 
33

 

 
16

Post-retirement benefit obligation
 

 
6

 
20

 

 
26

Total other comprehensive income
 

 
(10
)
 
62

 

 
52

Equity in other comprehensive loss of subsidiaries, net of tax
 
54

 
69

 

 
(123
)
 

Less: Other comprehensive income attributable to noncontrolling interests
 

 

 
(2
)
 

 
(2
)
Total other comprehensive income attributable to Aon shareholders
 
54

 
59

 
64

 
(123
)
 
54

Comprehensive income attributable to Aon shareholders
 
$
379

 
$
259

 
$
407

 
$
(666
)
 
$
379

 

Condensed Consolidating Statement of Comprehensive Income
 
 
Three months ended March 31, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income
 
$
261

 
$
247

 
$
300

 
$
(536
)
 
$
272

Less: Net income attributable to noncontrolling interests
 

 

 
11

 

 
11

Net income attributable to Aon shareholders
 
$
261

 
$
247

 
$
289

 
$
(536
)
 
$
261

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of investments
 

 

 

 

 

Change in fair value of derivatives
 

 
1

 
(15
)
 

 
(14
)
Foreign currency translation adjustments
 

 
(8
)
 
(166
)
 

 
(174
)
Post-retirement benefit obligation
 

 
7

 
16

 

 
23

Total other comprehensive income
 

 

 
(165
)
 

 
(165
)
Equity in other comprehensive income of subsidiaries, net of tax
 
(165
)
 
(164
)
 

 
329

 

Less: Other comprehensive income attributable to noncontrolling interests
 

 

 

 

 

Total other comprehensive income attributable to Aon shareholders
 
(165
)
 
(164
)
 
(165
)
 
329

 
(165
)
Comprehensive income attributable to Aon Shareholders
 
$
96

 
$
83

 
$
124

 
$
(207
)
 
$
96





Condensed Consolidating Statement of Financial Position 
 
 
As of March 31, 2014
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
ASSETS
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
154

 
$
1,372

 
$
(1,188
)
 
$
338

Short-term investments
 

 
101

 
239

 

 
340

Receivables, net
 

 
1

 
2,879

 

 
2,880

Fiduciary assets
 

 

 
12,038

 

 
12,038

Intercompany receivables
 
116

 
3,982

 
5,878

 
(9,976
)
 

Other current assets
 

 
109

 
538

 
(70
)
 
577

Total Current Assets
 
116

 
4,347

 
22,944

 
(11,234
)
 
16,173

Goodwill
 

 

 
9,030

 

 
9,030

Intangible assets, net
 

 

 
2,500

 

 
2,500

Fixed assets, net
 

 

 
785

 

 
785

Investments
 

 
69

 
74

 

 
143

Intercompany receivables
 
7,166

 
2,163

 
2,201

 
(11,530
)
 

Other non-current assets
 
146

 
509

 
1,477

 
(686
)
 
1,446

Investment in subsidiary
 
4,979

 
12,165

 

 
(17,144
)
 

TOTAL ASSETS
 
$
12,407

 
$
19,253

 
$
39,011

 
$
(40,594
)
 
$
30,077

 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Fiduciary liabilities
 
$

 
$

 
$
12,038

 
$

 
$
12,038

Short-term debt and current portion of long-term debt
 
227

 
140

 
710

 

 
1,077

Accounts payable and accrued liabilities
 
1,218

 
41

 
1,428

 
(1,188
)
 
1,499

Intercompany payables
 
87

 
5,834

 
4,055

 
(9,976
)
 

Other current liabilities
 
33

 
47

 
957

 
(70
)
 
967

Total Current Liabilities
 
1,565

 
6,062

 
19,188

 
(11,234
)
 
15,581

Long-term debt
 
792

 
2,516

 
361

 

 
3,669

Pension, other post-retirement and other post-employment liabilities
 

 
930

 
643

 

 
1,573

Intercompany payables
 
2,100

 
7,267

 
2,163

 
(11,530
)
 

Other non-current liabilities
 
4

 
112

 
1,818

 
(686
)
 
1,248

TOTAL LIABILITIES
 
4,461

 
16,887

 
24,173

 
(23,450
)
 
22,071

 
 
 
 
 
 
 
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
 
7,946

 
2,366

 
14,778

 
(17,144
)
 
7,946

Noncontrolling interests
 

 

 
60

 

 
60

TOTAL EQUITY
 
7,946

 
2,366

 
14,838

 
(17,144
)
 
8,006

 
 
 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
12,407

 
$
19,253

 
$
39,011

 
$
(40,594
)
 
$
30,077


Condensed Consolidating Statement of Financial Position
 
 
As of December 31, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
ASSETS
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
247

 
$
1,246

 
$
(1,016
)
 
$
477

Short-term investments
 

 
163

 
360

 

 
523

Receivables, net
 

 
4

 
2,892

 

 
2,896

Fiduciary assets
 

 

 
11,871

 

 
11,871

Intercompany receivables
 
186

 
3,503

 
5,452

 
(9,141
)
 

Other current assets
 

 
69

 
513

 
(19
)
 
563

Total Current Assets
 
186

 
3,986

 
22,334

 
(10,176
)
 
16,330

Goodwill
 

 

 
8,997

 

 
8,997

Intangible assets, net
 

 

 
2,578

 

 
2,578

Fixed assets, net
 

 

 
791

 

 
791

Investments
 

 
57

 
75

 

 
132

Intercompany receivables
 
7,166

 
2,178

 
2,201

 
(11,545
)
 

Other non-current assets
 
146

 
560

 
1,421

 
(704
)
 
1,423

Investment in subsidiary
 
4,607

 
11,694

 

 
(16,301
)
 

TOTAL ASSETS
 
$
12,105

 
$
18,475

 
$
38,397

 
$
(38,726
)
 
$
30,251

 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Fiduciary liabilities
 
$

 
$

 
$
11,871

 
$

 
$
11,871

Short-term debt and current portion of long-term debt
 

 

 
707

 
(4
)
 
703

Accounts payable and accrued liabilities
 
1,036

 
62

 
1,849

 
(1,016
)
 
1,931

Intercompany payables
 
15

 
5,449

 
3,677

 
(9,141
)
 

Other current liabilities
 
12

 
47

 
866

 
(19
)
 
906

Total Current Liabilities
 
1,063

 
5,558

 
18,970

 
(10,180
)
 
15,411

Long-term debt
 
792

 
2,512

 
378

 
4

 
3,686

Pension, other post-retirement and other post-employment liabilities
 

 
925

 
682

 

 
1,607

Intercompany payables
 
2,100

 
7,267

 
2,178

 
(11,545
)
 

Other non-current liabilities
 
5

 
159

 
1,892

 
(704
)
 
1,352

TOTAL LIABILITIES
 
3,960

 
16,421

 
24,100

 
(22,425
)
 
22,056

 
 
 
 
 
 
 
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
 
8,145

 
2,054

 
14,247

 
(16,301
)
 
8,145

Noncontrolling interests
 

 

 
50

 

 
50

TOTAL EQUITY
 
8,145

 
2,054

 
14,297

 
(16,301
)
 
8,195

 
 
 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
12,105

 
$
18,475

 
$
38,397

 
$
(38,726
)
 
$
30,251


Condensed Consolidating Statement of Cash Flows
 
 
Three months ended March 31, 2014
 
 
Aon
 
Aon
 
Other
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
 
 

 
 

 
 

 
 

 
 

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
 
$
89

 
$
(123
)
 
$
23

 
$

 
$
(11
)
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Sales of long-term investments
 

 
37

 
5

 

 
42

Purchase of long-term investments
 

 
(10
)
 

 

 
(10
)
Net sales of short-term investments - non-fiduciary
 

 
62

 
121

 

 
183

Acquisition of businesses, net of cash acquired
 

 

 
(5
)
 

 
(5
)
Proceeds from sale of businesses
 

 

 
1

 

 
1

Capital expenditures
 

 

 
(55
)
 

 
(55
)
CASH PROVIDED BY INVESTING ACTIVITIES
 

 
89

 
67

 

 
156

 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(600
)
 

 

 

 
(600
)
Advances from (to) affiliates
 
313

 
(206
)
 
65

 
(172
)
 

Issuance of shares for employee benefit plans
 
26

 

 

 

 
26

Issuance of debt
 
293

 
902

 

 

 
1,195

Repayment of debt
 
(68
)
 
(755
)
 
(6
)
 

 
(829
)
Cash dividends to shareholders
 
(53
)
 

 

 

 
(53
)
Purchase of shares from noncontrolling interests
 

 

 
1

 

 
1

Dividends paid to noncontrolling interests
 

 

 

 

 

CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES
 
(89
)
 
(59
)
 
60

 
(172
)
 
(260
)
 
 
 
 
 
 
 
 
 
 
 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 

 

 
(24
)
 

 
(24
)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
 

 
(93
)
 
126

 
(172
)
 
(139
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
 

 
247

 
1,246

 
(1,016
)
 
477

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$

 
$
154

 
$
1,372

 
$
(1,188
)
 
$
338


Condensed Consolidating Statement of Cash Flows
 
 
Three months ended March 31, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
 
 

 
 

 
 

 
 

 
 

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
 
$
5

 
$
(23
)
 
$
72

 
$

 
$
54

 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Sales of long-term investments
 

 
1

 
17

 

 
18

Purchase of long-term investments
 

 
(3
)
 

 

 
(3
)
Net (purchases) sales of short-term investments - non-fiduciary
 

 
(39
)
 
23

 

 
(16
)
Acquisition of businesses, net of cash acquired
 

 

 
(2
)
 

 
(2
)
Proceeds from sale of businesses
 

 

 
1

 

 
1

Capital expenditures
 

 

 
(60
)
 

 
(60
)
CASH USED FOR INVESTING ACTIVITIES
 

 
(41
)
 
(21
)
 

 
(62
)
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(300
)
 

 

 

 
(300
)
Advances from (to) affiliates
 
96

 
(206
)
 
71

 
39

 

Issuance of shares for employee benefit plans
 
36

 

 

 

 
36

Issuance of debt
 
87

 
833

 
230

 

 
1,150

Repayment of debt
 

 
(511
)
 
(204
)
 

 
(715
)
Cash dividends to shareholders
 
(50
)
 

 

 

 
(50
)
Purchase of shares from noncontrolling interests
 

 

 
(1
)
 

 
(1
)
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES
 
(131
)
 
116

 
96

 
39

 
120

 
 
 
 
 
 
 
 
 
 
 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 

 

 
5

 

 
5

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
 
(126
)
 
52

 
152

 
39

 
117

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
 
131

 
199

 

 
(39
)
 
291

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
5

 
$
251

 
$
152

 
$

 
$
408