Segment Information

6 Months Ended

Jun. 30, 2016

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 June 30,						Six months ended June 30,
	2016			2015			2016			2015
Risk Solutions	$	1,847		$	1,833		$	3,719		$	3,728
HR Solutions	931			979			1,861			1,949
Intersegment eliminations	(12		)	(7		)	(22		)	(25		)
Total revenue	$	2,766		$	2,805		$	5,558		$	5,652

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

	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Retail brokerage	$	1,508		$	1,498		$	3,003		$	3,011
Reinsurance brokerage	334			330			706			707
Total Risk Solutions Segment	1,842			1,828			3,709			3,718
Consulting services	383			391			757			762
Outsourcing	550			599			1,110			1,203
Intrasegment	(2		)	(11		)	(6		)	(16		)
Total HR Solutions Segment	931			979			1,861			1,949
Intersegment	(12		)	(7		)	(22		)	(25		)
Total commissions, fees and other revenue	$	2,761		$	2,800		$	5,548		$	5,642

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

	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Risk Solutions	$	5	$	5	$	10	$	10
HR Solutions	—		—		—		—
Total fiduciary investment income	$	5	$	5	$	10	$	10

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

	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Risk Solutions	$	373		$	279		$	802		$	691
HR Solutions	75			39			142			115
Segment income before income taxes	448			318			944			806
Unallocated expenses	(43		)	(41		)	(89		)	(88		)
Interest income	3			4			5			7
Interest expense	(73		)	(68		)	(142		)	(133		)
Other income	—			1			18			43
Income before income taxes	$	335		$	214		$	736		$	635

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.