Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has two reportable segments:  Risk Solutions and HR Solutions.  Unallocated income and expenses, when combined with the operating segments and after the elimination of intersegment revenues and expenses, equal the amounts in the Condensed Consolidated Financial Statements.

Reportable operating segments have been determined using a management approach, which is consistent with the basis and manner in which Aon's chief operating decision-maker ("CODM") uses financial information for the purposes of allocating resources and evaluating performance.  The CODM assesses performance based on operating income and generally accounts for inter-segment revenue as if the revenue were from third parties and at what management believes are current market prices.  The Company does not present net assets by segment as this information is not reviewed by the CODM.

Risk Solutions acts as an advisor and insurance and reinsurance broker, helping clients manage their risks, via consultation, as well as negotiation and placement of insurance risk with insurance carriers through Aon's global distribution network.

HR Solutions partners with organizations to solve their most complex benefits, talent and related financial challenges, and improve business performance by designing, implementing, communicating and administering a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies.

Aon's total revenue is as follows (in millions):

	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Risk Solutions	$	1,836		$	1,821		$	5,778		$	5,736
HR Solutions	1,057			981			3,004			2,891
Intersegment eliminations	(13		)	(8		)	(36		)	(21		)
Total revenue	$	2,880		$	2,794		$	8,746		$	8,606

Commissions, fees and other revenues by product are as follows (in millions):

	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Retail brokerage	$	1,458		$	1,424		$	4,619		$	4,548
Reinsurance brokerage	371			389			1,140			1,167
Total Risk Solutions Segment	1,829			1,813			5,759			5,715
Consulting services	466			406			1,245			1,176
Outsourcing	604			587			1,788			1,746
Intrasegment	(13		)	(12		)	(29		)	(31		)
Total HR Solutions Segment	1,057			981			3,004			2,891
Intersegment	(13		)	(8		)	(36		)	(21		)
Total commissions, fees and other revenue	$	2,873		$	2,786		$	8,727		$	8,585

Fiduciary investment income by segment is as follows (in millions):

	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Risk Solutions	$	7	$	8	$	19	$	21
HR Solutions	—		—		—		—
Total fiduciary investment income	$	7	$	8	$	19	$	21

A reconciliation of segment operating income before tax to income before income taxes is as follows (in millions):

	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Risk Solutions	$	343		$	333		$	1,205		$	1,127
HR Solutions	113			75			249			162
Segment income before income taxes	456			408			1,454			1,289
Unallocated expenses	(39		)	(44		)	(123		)	(133		)
Interest income	3			3			7			6
Interest expense	(65		)	(53		)	(188		)	(153		)
Other income	35			39			34			54
Income before income taxes	$	390		$	353		$	1,184		$	1,063

Unallocated expenses include administrative or other costs not attributable to the operating segments, such as corporate governance costs. Interest income represents income earned primarily on operating cash balances and certain income producing securities. Interest expense represents the cost of debt obligations.

Other income consists of equity earnings, realized gains or losses on the sale of investments, gains or losses on the disposal of businesses, gains or losses on derivatives, and gains or losses on foreign currency transactions.