XML 40 R17.htm IDEA: XBRL DOCUMENT v3.4.0.3
Employee Benefits
 3 Months Ended
Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Employee Benefits
Employee Benefits
 
The following table provides the components of the net periodic (benefit) cost recognized in the Condensed Consolidated Statements of Income in Compensation and benefits for Aon's material U.K., U.S., and other significant international pension plans located in the Netherlands and Canada (in millions):
 
Three months ended March 31,
 
U.K.
 
U.S.
 
Other
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Service cost
$
—

 
$
—

 
$
—

 
$
1

 
$
—

 
$
—

Interest cost
43

 
49

 
28

 
33

 
7

 
8

Expected return on plan assets, net of administration expenses
(64
)
 
(75
)
 
(39
)
 
(39
)
 
(12
)
 
(12
)
Amortization of prior-service cost
1

 
—

 
—

 
—

 
—

 
—

Amortization of net actuarial loss
8

 
10

 
13

 
14

 
3

 
3

Net periodic (benefit) cost
(12
)
 
(16
)
 
2

 
9

 
(2
)
 
(1
)
Curtailment gain and other
—

 
—

 
—

 
(1
)
 
—

 
—

Total net periodic (benefit) cost
$
(12
)

$
(16
)

$
2


$
8


$
(2
)

$
(1
)


Beginning in 2016, the Company has elected to utilize a full yield curve approach in the estimation of the service and interest cost components of net periodic pension and post-retirement benefit cost for Aon's major pension and other post-retirement benefit plans 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 estimated these components of net periodic pension and post-retirement benefit cost by applying a single weighted-average discount rate, derived from the yield curve used to measure the benefit obligation at the beginning of the period. The Company made this change to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of service and interest costs. This change does not affect the measurement of the projected benefit obligation as the change in the service cost and interest cost is completely offset in the actuarial (gain) loss recorded in other comprehensive income. The Company accounted for this change as a change in estimate and, accordingly, will account for it prospectively.

The Company expects to contribute approximately $79 million, $54 million, and $17 million, based on exchange rates as of December 31, 2015, to its significant U.K., U.S., and other significant international pension plans, respectively, during 2016. During the three months ended March 31, 2016, contributions of $17 million, $13 million, and $7 million were made to the Company's significant U.K., U.S., and other significant international pension plans, respectively.

During the three months ended March 31, 2015, contributions of $19 million, $34 million, and $4 million were made to the Company's significant U.K., U.S., and other significant international pension plans, respectively.